Garn-St. Germain Depository Institutions Act of 1982
Net Worth Guarantee Act - Amends the Federal Deposit Insurance Act, the National Housing Act, and the Federal Credit Union Act to permit the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board and the National Credit Union Administration Board to guarantee the net worth of qualified insured institutions.
Requires that, to qualify for a guarantee, an institution's net worth be less than two percent of its assets, that it have losses in at least two consecutive quarters, and that at least 20 percent of its loans and investments be in mortgages secured by or securities backed by residential real estate.
Requires that an institution use at least 60 percent of its annual net new deposits to issue mortgages which meet specified criteria.
Sets forth a formula for determining the amount of any such guarantee.
Permits additional guarantees of net worth after a two year period if the certified continued earnings losses are caused by general market conditions and not by the actions of the institution.
Requires a qualified institution, when its net worth reaches three percent of its assets, to begin to reduce the amount of guarantees received. Declares that the total annual reduction of guarantees of net worth received by such institution shall not be less than 50 percent of the net income, after taxes, of such bank for the year involved.
Declares that outstanding guarantees of net worth provided by the Corporation shall be backed by the Net Worth Guarantee Account established by this Act.
Establishes in the Treasury of the United States a Net Worth Guarantee Account which shall be used for the required payment of any guarantee of net worth issued pursuant to this Act.
Limits the total amount of guarantees of net worth issued under this Act at any time to $8,500,000,000.
Declares that no guarantee of net worth may be issued after Deptember 30, 1984.
Requires the Federal Home Loan Bank Board, the Board of Directors of the Federal Deposit Insurance Corporation, and the National Credit Union Administration Board to make quarterly reports to each House of Congress specifying the types and amounts of guarantees of net worth provided to each depository institution and the conditions imposed on each such institution.
Requires the Comptroller General to conduct semiannual audits of each guarantee of net worth and of the Net Worth Guarantee Account and transmit such report to Congress.
Became Public Law No: 97-320.