LIMITATIONS ON PURCHASES OF ASSETS FROM INSIDERS.

SEC. 615. LIMITATIONS ON PURCHASES OF ASSETS FROM INSIDERS.(a) Amendment to the Federal Deposit Insurance Act.—Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following:“(z) General Prohibition on Sale of Assets.—“(1) In general.—An insured depository institution may not purchase an asset from, or sell an asset to, an executive officer, director, or principal shareholder of the insured depository institution, or any related interest of such person (as 124 STAT. 1615 such terms are defined in section 22(h) of Federal Reserve Act), unless—“(A) the transaction is on market terms; and“(B) if the transaction represents more than 10 percent of the capital stock and surplus of the insured depository institution, the transaction has been approved in advance by a majority of the members of the board of directors of the insured depository institution who do not have an interest in the transaction.“(2) Rulemaking.—The Board of Governors of the Federal Reserve System may issue such rules as may be necessary to define terms and to carry out the purposes this subsection. Before proposing or adopting a rule under this paragraph, the Board of Governors of the Federal Reserve System shall consult with the Comptroller of the Currency and the Corporation as to the terms of the rule.”.(b) Amendments to the Federal Reserve Act.—Section 22(d) of the Federal Reserve Act (12 U.S.C. 375) is amended to read as follows:“(d) [Reserved]” .(c) Effective Date.—The amendments made by this section shall take effect on the transfer date.