Page:United States Statutes at Large Volume 100 Part 4.djvu/311

 PUBLIC LAW 99-570—OCT. 27, 1986

100 STAT. 3207-32

"(A) the Corporation determines that any acquiring party has not furnished all the information required under paragraph (6); "(B) in the Corporation's judgment, any material information submitted is substantially inaccurate; "(C) the Corporation has been unable to complete the investigation of an acquiring party under paragraph (2)(B) because of any delay caused by, or the inadequate cooperation of, such acquiring party; or (D) the Corporation determines that additional time is needed to investigate and determine that no acquiring party has a record of failing to comply with the requirements of subchapter II of chapter 58 of title 31, United States Code.".

3lUSC 5331ef

(b) DUTY TO INVESTIGATE APPLICANTS FOR CHANGE IN CONTROL seq.

APPROVAL.—Section 407(q)(2) of the National Housing Act (12 U.S.C. 1730(q)(2)) is amended— (1) by striking out "(2)" and inserting in lieu thereof "(2)(A) NOTICE TO STATE AGENCY.—"; and

(2) by adding at the end thereof the following new subparagraphs: "(B) INVESTIGATION OF PRINCIPALS REQUIRED.—Upon receiving any

notice under this subsection, the Corporation shall— "(i) conduct an investigation of the competence, experience, integrity, and financial ability of each person named in a notice of a proposed acquisition as a person by whom or for whom such acquisition is to be made; and "(ii) make an independent determination of the accuracy and completeness of any information described in paragraph (6) with respect to such person. "(C) REPORT.—The Corporation shall prepare a written report of any investigation under subparagraph (B) which shall contain, at a minimum, a summary of the results of such investigation. The Corporation shall retain such written report as a record of the Corporation.". (c) PUBLIC COMMENT ON CHANGE OF CONTROL NOTICES.—Section 407(q)(2) of the National Housing Act (12 U.S.C. 1730(q)(2)) is amended by adding after subparagraph (C) (as added by subsection (b) of this section) the following new subparagraph: "(D) PUBLIC COMMENT.—Upon receiving notice of a proposed acquisition, the Corporation shall, within a reasonable period of time— "(i) publish the name of the insured institution proposed to be acquired and the name of each person identified in such notice as a person by whom or for whom such acquisition is to be made; and "(ii) solicit public comment on such proposed acquisition, particularly from persons in the geographic area where the institution proposed to be acquired is located, before final consideration of such notice by the Corporation, unless the Corporation determines in writing that such disclosure or solicitation would seriously threaten the safety or soundness of such institution.". (d) INVESTIGATIONS AND ENFORCEMENT.—Section 407(q) of the National Housing Act (12 U.S.C. 1730(q)) is amended— (1) by redesignating paragraphs (16) and (17) as paragraphs (17) and (18), respectively; and (2) by inserting after paragraph (15) the following new paragraph:

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