103 STAT. 332 PUBLIC LAW 101-73 —AUG. 9, 1989 "(B) the qualified thrift investments of such savings association continue to equal or exceed 60 percent of the total tangible assets of such association on an average basis in 3 out of every 4 quarters and 2 out of every 3 years. "(2) EXCEPTIONS GRANTED BY DIRECTOR. —Notwithstanding paragraph (1), the Director may grant such temporary and limited exceptions from the minimum actual thrift investment percentage requirement contained in such paragraph as the Director deems necessary if— "(A) the Director determines that extraordinary cir- cumstances exist, such as when the effects of high interest rates reduce mortgage demand to such a degree that an insufficient opportunity exists for a savings association to meet such investment requirements; or "(B) the Director determines that— "(i) the grant of any such exception will significantly facilitate an acquisition under section 13(c) or 13(k) of the Federal Deposit Insurance Act; "(ii) the acquired association will comply with the transition requirements of paragraph (6)(B), as if the date of the exemption were the starting date for the transition period described in that paragraph; and "(iii) the Director determines that the exemption will not have an undue adverse effect on competing savings associations in the relevant market and will further the purposes of this subsection. "(3) FAILURE TO BECOME AND REMAIN A QUALIFIED THRIFT LENDER.— "(A) IN GENERAL. — Except as provided in subparagraph (D), a savings association that fails to become or remain a qualified thrift lender shall either become one or more banks (other than a savings bank), or be subject to subpara- graph (B). " (B) RESTRICTIONS APPLICABLE TO SAVINGS ASSOCIATIONS THAT ARE NOT QUALIFIED THRIFT LENDERS.— "(i) RESTRICTIONS EFFECTIVE IMMEDIATELY. — The fol- lowing restrictions shall apply immediately to a sav- ings association after the date on which the savings association should have become or ceases to be a quali- fied thrift lender: "(I) ACTIVITIES.—The savings association shall not make any new investment (including an invest- ment in a subsidiary) or engage, directly or in- directly, in any other new activity unless that investment or activity would be permissible for the savings association if it were a national bank, and is also permissible for the savings association as a savings association. "(II) BRANCHING. —The savings association shall not establish any new branch office at any location at which a national bank located in the savings association's home State may not establish a branch office. For purposes of this subclause, a savings association's home State is the State in which the savings association's total deposits were largest on the date on which the savings associa-
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