NOTICE PROCEDURES FOR BANK HOLDING COMPANIES TO SEEK APPROVAL TO ENGAGE IN CERTAIN ACTIVITIES.

SEC. 346. NOTICE PROCEDURES FOR BANK HOLDING COMPANIES TO SEEK APPROVAL TO ENGAGE IN CERTAIN ACTIVITIES. Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) is amended— (1) by adding at the end the following new subsection: “(j) Notice Procedures for Nonbanking Activities.— “(1) General notice procedure.— “(A) Notice requirement.— No bank holding company may engage in any nonbanking activity or acquire or retain ownership or control of the shares of a company engaged in activities based on subsection (c)(8) or (a)(2) without providing the Board with written notice of the proposed transaction or activity at least 60 days before the transaction or activity is proposed to occur or commence. “(B) Contents of notice.— The notice submitted to the Board shall contain such information as the Board shall prescribe by regulation or by specific request in connection with a particular notice. “(C) Procedure for agency action.— “(i) Notice of disapproval.— Any notice filed under this subsection shall be deemed to be approved by the Board unless, before the end of the 60-day period beginning on the date the Board receives a complete notice under subparagraph (A), the Board 108 STAT. 2240issues an order disapproving the transaction or activity and setting forth the reasons for disapproval. “(ii) Extension of period.— The Board may extend the 60-day period referred to in clause (i) for an additional 30 days. The Board may further extend the period with the agreement of the bank holding company submitting the notice pursuant to this subsection. “(iii) Determination of period in case of public hearing.— In the event a hearing is requested or the Board determines that a hearing is warranted, the Board may extend the notice period provided in this subsection for such time as is reasonably necessary to conduct a hearing and to evaluate the hearing record. Such extension shall not exceed the 91-day period beginning on the date that the hearing record is complete. “(D) Approval before end of period.— “(i) In general.— Any transaction or activity may commence before the expiration of any period for disapproval established under this paragraph if the Board issues a written notice of approval. “(ii) Shorter periods by regulation.— The Board may prescribe regulations which provide for a shorter notice period with respect to particular activities or transactions. “(E) Extension of period.— In the case of any notice to engage in, or to acquire or retain ownership or control of shares of any company engaged in, any activity pursuant to subsection (c)(8) or (a)(2) that has not been previously approved by regulation, the Board may extend the notice period under this subsection for an additional 90 days. The Board may further extend the period with the agreement of the bank holding company submitting the notice pursuant to this subsection. “(2) General standards for review.— “(A) Criteria.— In connection with a notice under this subsection, the Board shall consider whether performance of the activity by a bank holding company or a subsidiary of such company can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices. “(B) Grounds for disapproval.— The Board may deny any proposed transaction or activity for which notice has been submitted pursuant to this subsection if the bank holding company submitting such notice neglects, fails, or refuses to furnish the Board all the information required by the Board. “(C) Conditional action.— Nothing in this subsection limits the authority of the Board to impose conditions in connection with an action under this section.”; and (2) in subsection (c), by striking the penultimate sentence.