SPECIAL RULE FOR APPLYING SPIN-OFF RULES TO BRIDGE BANKS.

SEC. 6067. SPECIAL RULE FOR APPLYING SPIN-OFF RULES TO BRIDGE BANKS. (a) In General.—Section 414(1)(2) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: “(G) Special rules for bridge banks.—For purposes of this paragraph, in the case of a bridge bank established under section 11(i) of the Federal Deposit Insurance Act (12 U.S.C. 1821(i))— “(i) such bank shall be treated as a member of any controlled group which includes any insured bank (as defined in section 3(h) of such Act (12 U.S.C. 1813(h)))— “(I) which maintains a defined benefit plan, “(II) which is closed by the appropriate bank regulatory authorities, and “(III) any asset and liabilities of which are received by the bridge bank, and “(ii) the requirements of this paragraph shall not be treated as met with respect to such plan unless during the 180-day period beginning on the date such insured bank is closed— “(I) the bridge bank has the right to require the plan to transfer (subject to the provisions of this paragraph) not more than 50 percent of the excess assets (as defined in subparagraph (C)) to a defined benefit plan maintained by the bridge bank with respect to participants or former participants (including retirees and beneficiaries) in the original plan employed by the bridge bank or formerly employed by the closed bank, and “(II) no other merger, spin-off, termination, or similar transaction involving the portion of the excess assets described in subclause (I) may occur without the prior written consent of the bridge bank.” (b) Study.—The Secretary of the Treasury or his delegate, in consultation with the Federal Deposit Insurance Corporation, shall conduct a study with respect to the proper method of allocating assets in the case of a transaction to which the amendment made by this subsection applies. The Secretary of the Treasury shall not later than January 1, 1990, report the results of such study to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate. (c) Effective Date.—The amendment made by this section shall take effect as if included in the amendments made by section 205(c) of this Act.