1 2 3 4 5 6 7 8 9 10 49 “(ii) acquired in connection with a reorganization in which a person or group of persons exchange their shares of an insured institution for shares of a newly formed holding company and receive, after such reorganization, substantially the same proportional share interest in the holding company as they held in the insured institution, except for changes in shareholder in terests resulting from the exercise of dissenting shareholder rights under State law.". "(e) Section 408(n) of the National Housing Act (12) 11 U.S.C. 1730a) is amended to read as follows: 12 "(n) No State shall prohibit the affiliation of an associ13 ation, as that term is defined in section 2 of the Home 14 Owners' Loan Act of 1933, with a company engaged solely 15 in one or more of the activities described in subparagraphs 16 (F) and (G) of subsection (c)(2) of this section.". 18 17 AMENDMENTS TO THE HOME OWNERS' LOAN ACT OF 1933 SEC. 109. (a) Section 5(c) of the Home Owners' Loan 19 Act of 1933 (12 U.S.C. 1464(c)) is amended by amending 20 subparagraph (B) of paragraph (4) to read as follows: 21 22 23 24 25 "(B) SERVICE CORPORATIONS.-Investments in any 'depository institution service corporation', as that term is defined in the Depository Institution Service Corporation Act (12 U.S.C. 1861, et seq.) and in ac cordance with the requirements, conditions, and limita 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 50 tions specified in that Act: Provided, That any association that is a qualified thrift lender, as defined in section 408 of the Natonal Housing Act, may make in vestments in capital stock, obligations, or other securities of any corporation organized under the laws of the State in which the home office of the association is located, if the entire capital stock of such corporation is available for purchase only by savings and loan associ ations of such State and by Federal associations having their home offices in such State, but no association. may make any investment under this subparagraph if its aggregate outstanding investment under this subparagraph would exceed 3 per centum of the assets of the association, except that not less than one-half of the investment permitted under this subparagraph which exceeds 1 per centum of assets shall be used primarily for community, inner city, and community developent purposes.". (b) Section 5(q) of the Home Owners' Loan Act of 1933 20 (12 U.S.C. 1464(q)) is amended by adding at the end thereof 21 the following: 22 "(6) Any action for injunctive relief that may be com23 menced by any person pursuant to paragraph (2) of this pro24 vision, may be commenced on the behalf of such person by 25 any trade association of which such person is a member: Pro S 2181 IS 51 1 vided, That any such action commenced by a trade associ2 ation shall be subject to the same requirements, limitations 3 and conditions as would be applicable had such action been 4 commenced by any such person pursuant to paragraph (2) of 5 this provision.' 6 7 BANK SERVICE CORPORATION ACT SEC. 110. The Bank Service Corporation Act (12 8 U.S.C. 1861 et seq.) is amended to read as follows: 9 10 "SHORT TITLE AND DEFINITIONS "SECTION 1. (a) This Act may be cited as the Deposi 11 tory Institution Service Corporation Act. "(b) For purposes of this Act "(1) the term 'appropriate Federal supervisory agency' shall include 'appropriate Federal banking agency' as defined in section 1813(q) of this title (12) U.S.C. 1813(q)) and the Federal Home Loan Bank Board with respect to any 'insured institution' as defined in section 1730a(a)(1)(A) of this title (12 U.S.C. 1730a(a)(1)(A)) other than a qualified thrift lender as defined in section 408 of the National Housing Act; "(2) the term 'Depository Institution Service Cor poration' means a corporation organized to perform services authorized by this Act, all of the capital stock of which is owned by one or more depository institu tions; S 2181 IS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 52 "(3) the term 'depository institution' means any institution subject to examination and supervision by any 'appropriate Federal supervisory agency'; "(4) the term 'invest' includes any advance of funds to a Depository Institution Service Corporation, whether by the purchase of stock, the making of a loan, or otherwise, except a payment for rent earned, goods sold and delivered, or services rendered prior to the making of such payment; and "(5) the term 'principal investor' means the de pository institution that has the largest dollar amount invested in the capital stock of a Depository Institution Service Corporation. In any case where two or more depository institutions have equal dollar amounts in vested in a Depository Institution Service Corporation, the corporation shall, prior to commencing operations, select one of the depository institutions as its principal investor and shall notify the depository institution's ap propriate Federal supervisory agency of that choice 18 19 20 within five business days of its selection. 21 "AMOUNT OF INVESTMENT IN DEPOSITORY INSTITUTION 222 23 SERVICE CORPORATION "SEC. 2. Notwithstanding any limitation or prohibition 24 otherwise imposed by any provision of law exclusively relat 25 ing to any depository institution, a depository institution may S 2181 IS 53 1 invest not more than 10 per centum of paid-in and unim2 paired capital and unimpaired surplus in Depository Institu3 tion Service Corporations. No depository institution shall 4 invest more than 5 per centum of its total assets in Deposi5 tory Institution Service Corporations. 6 "PERMISSIBLE DEPOSITORY INSTITUTION SERVICE CORPO 7 8 RATION ACTIVITIES FOR DEPOSITORY INSTITUTIONS "SEC. 3. A depository institution may invest in one or 9 more Depository Institution Service Corporations that per10 form, and a Depository Institution Service Corporation may 11 perform, the following services only for depository institu12 tions and credit unions: check and deposit sorting and post13 ing; computation and posting of interest and other credits and 14 charges; preparation and mailing of checks, statements, no15 tices and similar items; credit information, appraising, con16 struction loan inspection, and abstracting; developing and ad17 ministering personnel benefit programs; research, studies, 18 and surveys; purchasing office supplies, furniture and equip19 ment; developing and operating storage facilities for micro20 film or other duplicate records; and clerical, bookkeeping, ac21 counting, statistical, data processing, internal auditing, and 22 similar functions performed for a depository institution. 23 24 "SERVICES TO NONSTOCKHOLDERS "SEC. 4. No Depository Institution Service Corporation 25 shall unreasonably discriminate in the provision of any serv S 2181 IS |