AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS ACT.

SEC. 338. AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS ACT. (a) Management Exemption.— Section 206 of the Depository Institution Management Interlocks Act (12 U.S.C. 3205) is amended— (1) in subsections (a) and (b), by striking “15 years after the date of enactment of this title” each place it appears and inserting “, subject to the requirements of subsection (c), 20 years after the date of enactment of this title”; and (2) by adding at the end the following new subsection: “(c) Review of Existing Management Interlocks.— Upon the timely filing of a submission by a person petitioning to serve as a management official in more than 1 position pursuant to subsection (a) or (b), each appropriate Federal depository institutions regulatory agency shall, not later than 6 months after the date of enactment of this Act— “(1) review, on a case-by-case basis, the circumstances under which such person has served as a management official under the provisions of subsection (a) or (b); and “(2) permit the management official to continue to serve in such position only if— “(A) such person has provided a resolution from the boards of directors of each affected depository institution, depository holding company, or company described in subsection (b). certifying to the appropriate Federal depository institutions regulatory agency for each of the institutions involved that there is no other qualified candidate from the community described in paragraph (1) or (2) of section 203 who— “(i) possesses the level of expertise necessary for such service with respect to the affected depository institution, depository holding company, or company described in subsection (b); and “(ii) is willing to serve as a management official at the affected depository institution, depository holding company, or company described in subsection (b); and 108 STAT. 2236 “(B) the appropriate Federal depository institutions regulatory agency determines that continuation of service by the management official does not produce an anti-competitive effect with respect to each affected depository institution, depository holding company, or company described in subsection (b).”. (b) Amendments to Section 209.— Section 209 of the Depository Institution Management Interlocks Act (12 U.S.C. 3207) is amended— (1) by striking “Rules” and inserting “(a) In General.—Rules”; (2) by striking “, including rules or regulations which permit service by a management official which would otherwise be prohibited by section 203 or section 204,”; and (3) by adding at the end the following new subsections: “(b) Regulatory Standards.— An appropriate Federal depository institution regulatory agency may permit, on a case-by-case basis, service by a management official which would otherwise be prohibited by section 203 or 204 only if— “(1) the board of directors of the affected depository institution, depository institution holding company, or company described in section 206(b), provides a resolution to the appropriate Federal depository institutions regulatory agency certifying that there is no other candidate from the community described in paragraph (1) or (2) of section 203 who— “(A) possesses the level of expertise necessary for such service with respect to the affected depository institution, depository institution holding company, or company described in section 206(b) and is not prohibited from service under section 203 or 204; and “(B) is willing to serve as a management official at the affected depository institution, depository institution holding company, or company described in section 206(b); and “(2) the appropriate Federal depository institutions regulatory agency determines that— “(A) the management official is critical to the safe and sound operations of the affected depository institution, depository institution holding company, or company described in section 206(b); “(B) continuation of service by the management official does not produce an anticompetitive effect with respect to the affected depository institution, depository institution holding company, or company described in section 206(b); and “(C) the management official meets such additional requirements as the agency may impose. “(c) Limited Exception for Management Official Consignment Program.— “(1) In general.— Notwithstanding the requirements of subsection (b), an appropriate Federal depository institutions regulatory agency may establish a program to permit, on a case-by-case basis, service by a management official which would otherwise be prohibited by section 203 or 204, for a period of not more than 2 years, if the agency determines that such service would— 108 STAT. 2237 “(A) improve the provision of credit to low- and moderate-income areas; “(B) increase the competitive position of minority- and woman-owned institutions; or “(C) strengthen the management of newly chartered institutions that are in an unsafe or unsound condition. “(2) Extension of service period —The appropriate Federal depository institutions regulatory agency may extend the 2-year period referred to in paragraph (1) for one additional period of not more than 2 years, subject to making a new determination described in subparagraphs (A) through (C) of paragraph (1).”.