Savings banks would follow foreign branch liability limits and capital rules

A savings bank with a foreign branch would be liable for branch contracts and deposits only to the extent local law requires. This applies to contracts performed and deposits repaid at a savings bank's branch offices in a foreign country.

The bank's liability for branch deposits and contracts must be reduced in proportion to affected branch assets that are seized, destroyed, or canceled. The rule covers deposits to be repaid and contracts to be performed at the bank's branch offices in the foreign territory. The reduction applies when an unrecognized foreign authority causes the loss of property or amounts carried as branch assets. The proportion is measured using the branch's recorded asset value and its recorded deposit and contract liabilities at the time of the loss.

A savings bank's power to assess shareholders or sell their shares to address impaired capital is not limited by the Uniform Commercial Code. This concerns assessments on shareholders and sales of their shares under the savings bank capital-impairment section. The assessment and sale powers described in this section apply when the bank's capital is impaired and follow the section's procedures.