103 STAT. 294 PUBLIC LAW 101-73—AUG. 9, 1989 savings association that retains deposits insured by the Corpora- tion, notwithstanding termination of its status as an institution insured by the Corporation. "(6) COMPLIANCE WITH MONETARY TRANSACTION RECORD- KEEPING AND REPORT REQUIREMENTS.— Regulations. " (A) CoMPUANCE PROCEDURES REQUIRED. — The Director shall prescribe regulations requiring savings associations to establish and maintain procedures reasonably designed to s assure and monitor the compliance of such associations vf with the requirements of subchapter II of chapter 53 of title 31, United States Code. "(B) EXAMINATIONS OF SAVINGS ASSOCIATIONS TO INCLUDE REVIEW OF COMPUANCE PROCEDURES. — "(i) IN GENERAL.— Each examination of a savings . .- association by the Director shall include a review of the procedures required to be established and maintained under subparagraph (A). " (ii) EXAM REPORT REQUIREMENT. —The report of examination shall describe any problem with the proce- dures maintained by the association. " (C) ORDER TO COMPLY WITH REQUIREMENTS.— If the Direc- tor determines that a savings association— "(i) has failed to establish and maintain the proce- . dures described in subparagraph (A); or "(ii) has failed to correct any problem with the proce- dures maintained by such association which was pre- viously reported to the association by the Director, the Director shall issue an order under section 8 of the Federal Deposit Insurance Act requiring such association to cease and desist from its violation of this paragraph or regulations prescribed under this paragraph. "(e) CHARACTER AND RESPONSIBILITY. — A charter may be granted only— "(1) to persons of good character and responsibility, "(2) if in the judgment of the Director a necessity exists for such an institution in the community to be served, "(3) if there is a reasonable probability of its usefulness and success, and "(4) if the association can be established without undue injury to properly conducted existing local thrift and home financing institutions, p "(f) FEDERAL HOME LOAN BANK MEMBERSHIP.—Each Federal sav- ings association, upon receiving its charter, shall become automati- cally a member of the Federal home loan bank of the district in which it is located, or if convenience requires and the Director approves, shall become a member of a Federal home loan bank of an adjoining district. Such associations shall qualify for such member- ship in the manner provided in the Federal Home Loan Bank Act with respect to other members. • j Mij "(g) PREFERRED SHARES.—[Repealed.] " (h) DISCRIMINATORY STATE AND LOCAL TAXATION PROHIBITED. — No State, county, municipal, or local taxing authority may impose any tax on Federal savings associations or their franchise, capital, reserves, surplus, loans, or income greater than that imposed by such authority on other similar local mutual or cooperative thrift and home financing institutions, "(i) CONVERSIONS.— ?
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