PASSIVE INVESTMENTS BY COMPANIES CONTROLLING CERTAIN NONBANK BANKS.

SEC. 603. PASSIVE INVESTMENTS BY COMPANIES CONTROLLING CERTAIN NONBANK BANKS. (a) In General.—Section 4(f)(2)(A)(ii) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(2)(A)(ii)) is amended to read as follows: “(ii) acquires control of more than 5 percent of the shares or assets of an additional bank or a savings association other than— “(I) shares held as a bona fide fiduciary (whether with or without the sole discretion to vote such shares); “(II) shares held by any person as a bona fide fiduciary solely for the benefit of employees of either the company described in paragraph (1) or any subsidiary of that company and the beneficiaries of those employees; “(III) shares held temporarily pursuant to an underwriting commitment in the normal course of an underwriting business; 103 STAT. 410 “(IV) shares held in an account solely for trading purposes; “(V) shares over which no control is held other than control of voting rights acquired in the normal course of a proxy solicitation; “(VI) loans or other accounts receivable acquired in the normal course of business; “(VII) shares or assets acquired in securing or collecting a debt previously contracted in good faith, during the 2-year period beginning on the date of such acquisition or for such additional time (not exceeding 3 years) as the Board may permit if the Board determines that such an extension will not be detrimental to the public interest; “(VIII) shares or assets of a savings association described in paragraph (10) or (12) of this subsection; “(IX) shares of a savings association held by any insurance company, as defined in section 2(a)(17) of the Investment Company Act of 1940, except as provided in paragraph (11); and “(X) shares issued in a qualified stock issuance under section-10(q) of the Home Owners’ Loan Act: except that the aggregate amount of shares held under this clause (other than under subclauses (I), (II), (III), (IV), (V), and (VIII)) may not exceed 15 percent of all outstanding shares or of the voting power of a savings association; or”. (b) Technical Amendments.— (1) Section 4(f)(10) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(0(10)) is amended— (A) by striking “and (ii)(V)” and inserting “and (ii)(VIII)”; and (B) in subparagraph (A), by inserting “or section 13(k) of the Federal Deposit Insurance Act” after “National Housing Act”. (2) Section 4(f) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(0) is amended by adding at the end the following: “(11) Shares held by insurance affiliates.—Shares described in clause (ii)(IX) of paragraph (2)(A) shall not be excluded for purposes of clause (ii) of such paragraph if— “(A) all shares held under such clause (ii)(IX) by all insurance company affiliates of such savings association in the aggregate exceed 5 percent of all outstanding shares or of the voting power of the savings association; or “(B) such snares are acquired or retained with a view to acquiring, exercising, or transferring control of the savings association.”.