COMMERCIAL MORTGAGE RELATED SECURITIES.

SEC. 347. COMMERCIAL MORTGAGE RELATED SECURITIES. (a) In General.— Section 3(a)(41)(A)(i) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(41)(A)(i)) is amended— (1) by striking “or on a residential” and inserting “on a residential”; and (2) by inserting before the semicolon “, or on one or more parcels of real estate upon which is located one or more commercial structures”. (b) Amendment to the Reused Statutes.— Paragraph Seventh of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended in the twelfth sentence, by striking “(15 U.S.C. 78c(a)(41))), subject to such regulations” and inserting “(15 U.S.C. 78c(a)(41)). The exception provided for the securities described in subparagraphs (A), (B), and (C) shall be subject to such regulations”. (c) Regulations.— Not later than 1 year after the date ofenactment of this Act, the Comptroller of the Currency shall promulgate final regulations, in accordance with the thirteenth sentence of Paragraph Seventh of section 5136 of the Revised Statutes (as amended by subsection (b)), to carry out the amendments made by this section. (d) Effective Date.— The amendments made by this section shall become effective upon the date of promulgation of final regulations under subsection (c). (e) State Opt Out.— Notwithstanding the amendments made by this section, a note that is directly secured by a first lien on one or more parcels of real estate upon which is located one or more commercial structures shall not be considered to be a mortgage related security under section 3(a)(41) of the Securities Exchange Act of 1934 in any State that, prior to the expiration of 7 years after the date of enactment of this Act, enacts a statute that specifically refers to this section and either prohibits or provides for a more limited authority to purchase, hold, or invest in such securities by any person, trust, corporation, partnership, association, business trust, or business entity or class thereof than is provided by the amendments made by this subsection. The enactment by any State of any statute of the type described in the preceding sentence shall not affect the validity of any contractual commitment to purchase, hold, or invest that was made prior thereto, and shall not require the sale or other disposition of any securities acquired prior thereto.