of Thrift Supervision, Treasury § 541.8

consumers that is substantially equiva- § 541.3 Combination of home and busi- lent to, or greater than, the protection ness property. afforded by this rule. The term combination of home and (b) If the Office makes a determina- property means a home used in tion as specified under paragraph (a) of part for business. this section, then that provision of this section will not be in effect in that § 541.4 Combination of residential real state to the extent specified by the Of- estate and business property in- fice in its determination, for as long as volving only minor or incidental the state administers and enforces the business use. state requirement or prohibition effec- The term combination of residential tively, as determined by the Office. real estate and business property involv- (c) The of Consumer Affairs ing only minor or incidental business use in consultation with the Chief Counsel means residential real estate for which shall have delegated authority to make no more than twenty percent of the such determinations as are required total appraised value of the real estate under this part 535. is attributable to the business use.

PART 541—DEFINITIONS § 541.5 Commercial paper. The term commercial paper means any Sec. note, draft, or bill of exchange which 541.1 General. arises out of a current transaction or 541.2 Act. the proceeds of which have been or are 541.3 Combination of home and business to be used for current transactions, and property. which has a maturity at the time of is- 541.4 Combination of residential real estate suance of not exceeding nine months, and business property involving only minor or incidental business use. exclusive of days of grace, or any re- 541.5 Commercial paper. newal thereof the maturity of which is 541.6 housing development. likewise limited. 541.7 Corporate debt security. 541.8 Debit card. § 541.6 Cooperative housing develop- 541.10 Dwelling unit. ment. 541.11 Federal savings association. The term cooperative housing develop- 541.13 Guaranteed loan. 541.14 Home. ment means real estate primarily com- 541.15 Improved nonresidential real estate. prising a group of single-family dwell- 541.16 Improved residential real estate. ings owned by a non-profit cooperative 541.17 Insured loan. housing . 541.18 Interim Federal savings association. 541.19 Interim state savings association. § 541.7 Corporate debt security. 541.20 Loans. 541.21 Nonresidential real estate. The term corporate debt security 541.22 [Reserved] means a marketable obligation, evi- 541.23 Residential real estate. dencing the indebtedness of any cor- 541.25 Single-family dwelling. poration in the form of a bond, note 541.26 Surplus. and/or debenture which is commonly 541.27 Unimproved real estate. regarded as a debt security and is not 541.28 Withdrawal value of a savings ac- predominantly speculative in nature. A count. security is marketable if it may be sold AUTHORITY: 12 U.S.C. 1462a, 1463, 1464. with reasonable promptness at a price SOURCE: 54 FR 49480, Nov. 30, 1989, unless which corresponds reasonably to its otherwise noted. fair value.

§ 541.1 General. § 541.8 Debit card. Unless another definition is provided The term debit card means a card in this chapter, definitions in part 561 that enables an accountholder to ob- of this chapter apply. tain access to a savings account for the purpose of making withdrawals or of § 541.2 Act. transferring funds to a third party by The term Act means the Home Own- non-transferable order or authoriza- ers’ Loan Act of 1933, as amended. tion.

63

VerDate 14-MAR-97 09:51 Mar 19, 1997 Jkt 010199 PO 00000 Frm 00063 Fmt 8010 Sfmt 8010 E:\CFR\174034.017 174034 § 541.10 12 CFR Ch. V (1–1–97 Edition)

§ 541.10 Dwelling unit. Readjustment Act of 1944, or chapter 37 of 38, United States Code, as The term dwelling unit means the amended. unified combination of rooms designed for residential use by one family, other § 541.18 Interim Federal savings asso- than a single-family dwelling. ciation. § 541.11 Federal savings association. The term interim Federal savings asso- ciation means a Federal savings asso- The term Federal savings association ciation chartered by the Office under means a Federal savings association or section 5 of the Act to facilitate the ac- Federal savings bank chartered under quisition of 100 percent of the voting section 5(o) of the Act. shares of an existing Federal stock sav- ings association or other insured stock § 541.13 Guaranteed loan. savings association by a newly formed The term guaranteed loan means a company or an existing savings and loan guaranteed or as to which a com- loan or to facilitate mitment to guarantee has been made any other transaction the Office may under the Servicemen’s Readjustment approve. Act of 1944, or chapter 37 of title 38, United States Code, as amended. § 541.19 Interim state savings associa- tion. § 541.14 Home. The term interim state savings associa- The term home means real estate tion means a savings association, other comprising a single-family dwelling(s) than a Federal savings association, the or a dwelling unit(s) for four or fewer accounts of which are insured by the families in the aggregate. FDIC to facilitate the acquisition of 100 percent of the voting shares of an ex- § 541.15 Improved nonresidential real isting Federal stock savings associa- estate. tion or other insured stock savings as- The term improved nonresidential real sociation by a newly formed company estate means nonresidential real estate: or an existing savings and loan holding (a) Containing a permanent struc- company or to facilitate any other ture(s) constituting at least 25 percent transaction the Office may approve. of its value; or (b) Containing improvements which § 541.20 Loans. make it usable by a business or indus- The term loans means obligations trial enterprise; or and extensions or advances of credit; (c) Used, or to be used within a rea- and any reference to a loan or invest- sonable time, for commercial farming, ment includes an interest in such a excluding hobby and vacation property. loan or investment.

§ 541.16 Improved residential real es- § 541.21 Nonresidential real estate. tate. The terms nonresidential real estate or The term improved residential real es- nonresidential real property mean real tate means residential real estate con- estate that is not residential real estate, taining offsite or other improvements as that term is defined in § 541.23 of this sufficient to make the property ready part. for primarily residential construction, and real estate in the process of being § 541.22 [Reserved] improved by a building or buildings to be constructed or in the process of con- § 541.23 Residential real estate. struction for primarily residential use. The terms residential real estate or res- idential real property mean homes (in- § 541.17 Insured loan. cluding condominiums and coopera- The term insured loan means a loan tives), combinations of homes and busi- as to which the mortgagee is insured, ness property, other real estate used or as to which a commitment for such for primarily residential purposes has been made under the Na- other than a home (but which may in- tional Housing Act or the Servicemen’s clude homes), combinations of such

64

VerDate 14-MAR-97 09:51 Mar 19, 1997 Jkt 010199 PO 00000 Frm 00064 Fmt 8010 Sfmt 8010 E:\CFR\174034.018 174034 Office of Thrift Supervision, Treasury § 543.2

real estate and business property in- CONVERSION volving only minor business use, farm 543.8 Conversion of State mutual charter to residences and combinations of farm Federal charter. residences and commercial farm real 543.9 Application for conversion to Federal estate, property to be improved by the mutual charter. construction of such structures, or 543.10 Organization after conversion. leasehold interests in the above real es- 543.11 Organization plan for dur- ing first years after issuance of Federal tate. mutual savings bank charter. 543.11–1 Grandfathered authority. § 541.25 Single-family dwelling. 543.14 Continuity of existence.

A structure designed for residential AUTHORITY: 12 U.S.C. 1462, 1462a, 1463, 1464, use by one family, or a unit so de- 1467a, 2901 et seq.

signed, whose owner owns, directly or SOURCE: 54 FR 49482, Nov. 30, 1989, unless through a non-profit cooperative hous- otherwise noted. ing organization, an undivided interest in the underling real estate, including § 543.1 Corporate title. property owned in common with others (a) General. A Federal savings asso- which contributes to the use and enjoy- ciation shall not adopt a title that mis- ment of the structure or unit. represents the nature of the institution or the services it offers. § 541.26 Surplus. (b) Title change. Prior to changing its The term surplus means undistrib- corporate title, an association must uted earnings held as unallocated re- file with the OTS a written notice indi- serves for general corporate use. cating the intended change. The OTS, shall provide to the association a time- § 541.27 Unimproved real estate. ly written acknowledgment stating The term unimproved real estate when the notice was received. If, with- means real estate that will be im- in 30 days of receipt of notice, the OTS proved, as defined in § 541.15 or § 541.16 does not notify the association of its objection on the grounds set forth in of this part. paragraph (a) of this section, the asso- § 541.28 Withdrawal value of a savings ciation may change its title by amend- account. ing its charter in accordance with § 544.2(b) or § 552.4 and the amendment The term withdrawal value of a sav- provisions of its charter, except that ings account means the amount in- an association chartered as a Federal vested in a savings account plus earn- Savings and Loan Association may ings credited thereto, less lawful de- change its title to indicate that it is a ductions therefrom. Federal Savings Bank, and an associa- tion chartered as a Federal Savings PART 543—INCORPORATION, OR- Bank may change its title to indicate GANIZATION, AND CONVERSION that it is a Federal Savings and Loan OF FEDERAL MUTUAL ASSOCIA- Association. TIONS [54 FR 49482, Nov. 30, 1989, as amended at 57 FR 14338, Apr. 20, 1992; 58 FR 4312, Jan. 14, Sec. 1993; 61 FR 64015, Dec. 3, 1996] 543.1 Corporate title. ORGANIZATION ORGANIZATION § 543.2 Application for permission to 543.2 Application for permission to orga- organize. nize. (a) General. Recommendations by em- 543.5 Issuance of charter. 543.6 Completion of organization. ployees of the OTS regarding applica- 543.7 Limitations on transaction of busi- tions for permission to organize a Fed- ness. eral savings association are privileged, 543.7–1 Federal savings association created confidential, and subject to § 510.5 (b) in connection with an association in de- and (c) of this chapter. fault or in danger of default. (b) [Reserved]

65

VerDate 14-MAR-97 09:51 Mar 19, 1997 Jkt 010199 PO 00000 Frm 00065 Fmt 8010 Sfmt 8010 E:\CFR\174034.018 174034