PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 271 "(e) TRANSFER OF CORPORATE DEBT SECURITY NOT OF INVESTMENT GRADE IN EXCHANGE FOR A QUALIFIED NOTE. — " (1) ACQUISITION OF NOTE. —Notwithstanding subsections (a), (b), and (c) of section 5 of the Home Owners' Loan Act and any other provision of Federal or State law governing extensions of credit by savings associations, any insured savings association, and any subsidiary of any insured savings association, that, on the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, holds any corporate debt security not of investment grade may acquire a qualified note in exchange for the trsuisfer of such security to— "(A) any holding company which controls 80 percent or more of the shares of such insured savings association; or "(B) any company other than an insured savings associa- tion, or any subsidiary of any insured savings association, 80 percent or more of the shares of which are controlled by such holding company, if the conditions of paragraph (2) are met. "(2) CONDITIONS FOR EXCHANGE OF SECURITY FOR QUALIFIED NOTE. —The conditions of this paragraph are met if— "(A) the insured savings association was in compliance with applicable capital requirements on December 31, 1988, and the insured savings association after such date— "(i) remains in compliance with applicable capital requirements; or "(ii) adopts and complies with a capital plan accept- able to the Director of the Office of Thrift Supervision; "(Bj the company to which the corporate debt security not of investment grade is transferred is not a bank holding company, an insured savings association, or a direct or indirect subsidiary of such holding company or insured savings association; ^ "(C) before the end of the 90-day period beginning on the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the insured savings association notifies the Director of the Office of Thrift Supervision of such association's intention to transfer the corporate debt security not of investment grade to the savings and loan holding company or the subsidiary of such holding company; "(D) the transfer of the corporate debt security not of investment grade is completed— "(i) before the end of the 1-year period banning on the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, in the case of an insured savings association that, as of such date, is controlled by a savings and loan holding com- pany; or "(ii) before the end of the 2-year period beginning on such date, in the case of a savings association that is not, as of such date, a subsidiary of a savings and loan holding company; "(E) the insured sa\'ings association receives in exchange for the corporate debt security not of investment grade the fair market value of such security; "(F) the Director of the Office of Thrift Supervision has— "(i) approved the transaction; and
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