Page:United States Statutes at Large Volume 101 Part 1.djvu/600

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PUBLIC LAW 100-000—MMMM. DD, 1987

101 STAT. 570

PUBLIC LAW 100-86—AUG. 10, 1987

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"(B) EXEMPTION FOR ACTIVITIES LAWFULLY ENGAGED IN

BEFORE MARCH 5, 1987.—Notwithstanding paragraph (1)(C) and subject to subparagraphs (C) and (D), any savings and loan holding company which received approval, before March 5, 1987, under subsection (e) of this section to acquire control of an insured institution may engage, directly or through any subsidiary (other than an insured institution subsidiary of such company), in any activity in which such company or such subsidiary was lawfully engaged on such date. "(C) TERMINATION OF SUBPARAGRAPH (B) EXEMPTION.—

Post, p. 613.

26 USC 7701. 100 Stat. 2095.

The exemption provided under subparagraph (B) for activities engaged in by any savings and loan holding company or a subsidiary of such company (which is not an insured institution) which would otherwise be prohibited under

paragraph (1)(C) shall terminate with respect to such activities of such company or subsidiary upon the occurrence (after the date of the enactment of the Competitive Equality Amendments of 1987) of any of the following: "(i) The savings and loan holding company acquires control of a bank or an additional insured institution (other than an insured institution acquired pursuant to subsection (m) of this section or section 406(0). "(ii) Any insured institution subsidiary of the savings and loan holding company fails to qualify as a domestic building and loan association under section 7701(a)(19) >-^.. of the Internal Revenue Code of 1986. "({{{) The savings and loan holding company engages ...;, in any business activity— "(I) which is not described in paragraph (2); and "(II) in which it was not engaged on March 5, 1987. "(iv) Any insured institution subsidiary of the savings and loan holding company increases the number of locations from which such insured institution conducts business after March 5, 1987 (other than an increase which occurs in connection with a transaction under subsection (m) of this section or section 406(f)). "(v) Any insured institution subsidiary of the savings and loan holding company permits any overdraft (including an intraday overdraft), or incurs any such overdraft in its account at a Federal Reserve bank, on behalf of an affiliate, unless such overdraft is the result of an inadvertent computer or accounting error that is beyond the control of both the insured institution

' subsidiary and the affiliate. "(D) ORDER BY CORPORATION TO TERMINATE SUBPARAGRAPH

(B) ACTIVITY.—Any activity described in subparagraph (B) may also be terminated by the Corporation, after oppor" ^ tunity for hearing, if the Corporation determines, having due regard for the purposes of this title, that such action is necessary to prevent conflicts of interest or unsound practices or is in the public interest. "(7) FOREIGN SAVINGS AND LOAN HOLDING COMPANY.—Notwith-

standing any other provision of this section, any savings and loan holding company organized under the laws of a foreign country as of June 1, 1984 (including any subsidiary thereof