PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 339 "(A) the payment of dividends by the savings association; "(B) transactions between the savings association, the holding company, and the subsidiaries or affiliates of either; and "(C) any activities of the savings association that might create a serious risk that the liabilities of the holding company and its other affiliates may be imposed on the savings association. Such directive shall be effective as a cease and desist order that has become final. "(2) REVIEW OF DIRECTIVE. — "(A) ADMINISTRATIVE REVIEW.— After a directive referred to in paragraph (1) is issued, the savings and loan holding company, or any subsidiary of such holding company sub- ject to the directive, may object and present in writing its reasons why the directive should be modified or rescinded. Unless within 10 days after receipt of such response the Director affirms, modifies, or rescinds the directive, such directive shall automatically lapse. "(B) JUDICIAL REVIEW. — I f the Director affirms or modi- District of fies a directive pursuant to subparagraph (A), any affected Columbia, party may immediately thereafter petition the United States district court for the district in which the savings and loan holding company has its main office or in the United States District Court for the District of Columbia to stay, modify, terminate or set aside the directive. Upon a showing of extraordinary cause, the savings and loan hold- ing company, or any subsidiary of such holding company subject to a directive, may petition a United States district court for relief without first pursuing or exhausting the administrative remedies set forth in this paragraph. " (q) QUALIFIED STOCK ISSUANCE BY UNDERCAPITALIZED SAVINGS ASSOCIATIONS OR HOLDING COMPANIES. — "(1) IN GENERAL.— For purposes of this section, any issue of shares of stock shall be treated as a qualified stock issuance if the following conditions are met: "(A) The shares of stock are issued by— "(i) an undercapitalized savings association; or "(ii) a savings and loan holding company which is not a bank holding company but which controls an undercapitalized savings association if, at the time of issuance, the savings and loan holding company is legally obligated to contribute the net proceeds from the issuance of such stock to the capital of an undercapitalized savings association subsidiary of such holding company. "(B) All shares of stock issued consist of previously unissued stock or treasury shares. "(C) All shares of stock issued are purchased by a savings and loan holding company that is registered, as of the date of purchase, with the Director in accordance with the provi- sions of subsection (b)(1) of this section. "(D) Subject to paragraph (2), the Director approved the purchase of the shares of stock by the acquiring savings and loan holding company. »«r. "(E) The entire consideration for the stock issued is paid in cash by the acquiring savings and loan holding company.
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