General. Except as the appropriate Federal banking agency otherwise may permit by advice in writing, a savings association may borrow only in accordance with the provisions of this section.

Amount of borrowing. A savings association may borrow up to the amount authorized by the laws under which the savings association operates.

Security. An association may give security for borrowings subject to any requirements imposed by the appropriate Federal banking agency or the FDIC regarding notice of default on borrowings and any FDIC right of first refusal to purchase collateral.

Required statement for all securities evidencing outside borrowings. Each security shall bear on its face, in a prominent place, the following legend:

This security is not a savings account or a deposit and it is not insured by the United States or any agency or fund of the United States.

Filing requirements for outside borrowings with maturities in excess of one year. (1) Unless the savings association meets its capital requirement under 12 CFR part 3 or part 167, as applicable if a Federal savings association or 12 CFR part 324 or part 390, subpart Z, as applicable, if a state savings association it shall, at least ten business days prior to issuance, file a notice of intent to issue securities evidencing such borrowings with the appropriate OCC licensing office if a Federal savings association, or with the appropriate regional director of the FDIC if a state savings association. Such notice shall contain a summary of the items of the security, including:

Principal amount of the securities;

Anticipated interest rate range and price range at which the securities are to be sold;

Minimum denomination;

Stated and average effective maturity;

Mandatory and optional prepayment provisions;

Description, amount, and maintenance of collateral if any;

Trustee provisions if any;

Events of default and remedies of default;

Any provisions which restrict, conditionally or otherwise, the operations of the association.

The appropriate Federal banking agency shall have 10 business days after receipt of such filing to object to the issuance of such securities. The appropriate Federal banking agency shall object if the terms or covenants of the proposed issue place unreasonable burdens on, or control over, the operations of the association. If no objection is taken, the savings association shall have 120 calendar days within which to issue such securities.

Note accounts. For purposes of this section, note accounts are not borrowings.