Examples of Federal association in a sentence
Section 53638 stipulates that negotiable CD’s may not exceed the shareholder’s equity of the bank, and that the amount of CD’s purchased from a State or Federal association may not exceed the total of the net worth of that association unless the purchase amount is less than$500,000 and the deposits are insured or secured as required by law.
Subject to the same proviso, § 545.102(a) also permits a Federal association to act as trustee with no active fiduciary duties if state law authorizes a financial institution to act in such capacity (“passive trust").
Section 545.8-5(b) also authorizes a Federal association to include a provision in its loan contract with a borrower (who occupies or will occupy the home securing the mortgage loan) imposing a prepayment penalty at any amount up to, but not exceeding, a specified limit.
Thus, in view of the controlling Federal regulation, a Federal association may include a prepayment provision in the loan contract up to the maximum limitation of § 545.8-5(b) regardless of conflicting State law which sets a lower limit or imposes a different type of prepayment penalty, but it may not charge a prepayment penalty exceeding the limit in§ 545.8-5(b) even if State law allows a higher charge.