106 STAT. 3894 PUBLIC LAW 102-550—OCT. 28,1992

"(vi) LIMIT.—The applicable percentage limit
allowed by the Director in an order under clause (iii)
shall not exceed the following limits:

Tor the following period: The limit i«:

Prior to July 1,1994 ........................................................................ 75 percent

July 1,1994 through June 30,1995 ............................................... 60 percent

July 1,1995 through June 30,1996 ............................................... 40 percent

After June 30,1996.......................................................................... 0 percent

"(vii) CRITICALLY UNDERCAPITALIZED nisnru-
TION.—In the case of a sayings associaton that
becomes critically undercapitalized (as define 1 in sec-
tion 38 of the Federal Deposit Insurance Act) its deter-
mined under this subparagraph without applying
clause (iii), clauses (iii) through (v) shall be applied
by substituting 'Corporation' for 'Director' each place
such term appears.

"(viii) QUALIFIED SAVINGS ASSOCIATION DEFINED.—
For purposes of clause (iii), the term 'qualified &ravings
association* means an eligible savings association (as
defined in paragraph (3X13)) which is subject to this
paragraph solely because of the real estate investments
or other real estate activities of the association's
subsidiary, and—

"(I) is adequately capitalized (as defined in
section 38 of the Federal Deposit Insurance Act);
or

"(II) is hi compliance with an approved capital
restoration plan meeting the requirements of sec-
tion 38 of the Federal Deposit Insurance Act, and
is not critically undercapitalized (as defined hi
such section).".

(b) TECHNICAL AND CONFORMING AMENDMENT.—Clause (ix) of
section 5(tX5XD) of the Home Owners' Loan Act (12 U.S.C.
1464(tX5XD)) (as so redesignated by subsection (a) of this section)
is amended by inserting or prescribed under clause (iii)" after
"clause (ii)".

SEC. 964. REAL ESTATE APPRAISAL AMENDMENT.

Section 1112 of the Financial Institution Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3341) is amended—

(1) by striking "Each Federal financial institutions" and
inserting "(a) IN GENERAL.—Each Federal financial institu-
tions"; and

(2) by adding at the end the following new subsections:
"(b) THRESHOLD LEVEL.—Each Federal financial institutions

regulatory agency and the Resolution Trust Corporation may estab-
lish a threshold level at or below which a certified or licensed
appraiser is not required to perform appraisals in connection with
federally related transactions, if such agency determines in writing
that such threshold level does not represent a threat to the safety
and soundness of financial institutions.

"(c) GAO STUDY OF APPRAISALS IN CONNECTION WITH REAL
ESTATE RELATED FINANCIAL TRANSACTIONS BELOW THE THRESHOLD
LEVEL.—

"(1) STUDY REQUIRED.—At the end of the 18-month period,
and the end of the 36-month period, beginning on the date
of the enactment of this subsection, the Comptroller General