Page:United States Statutes at Large Volume 100 Part 4.djvu/486

 100 STAT. 3222

PUBLIC LAW 99-571—OCT. 28, 1986 (c) REPORT AND RECOMMENDATIONS.—The report of the Comptrol-

ler General shall be submitted to the Congress no later than 6 months after the date of enactment of this Act. SEC. 105. SECURITIES AND EXCHANGE COMMISSION LEGISLATION STUDY. Banks and banking. Insurance.

15 USC 77a.

Banks and banking.

Banks and banking.

(a) GENERAL REQUIREMENTS.—The Securities and Exchange Commission is authorized and directed to make a study of the use of the exemption contained in section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) for securities guaranteed by banks, and of the use of insurance policies to guarantee securities. Such study shall include an analysis of— (1) the impact of the guarantee provision of such section 3(a)(2) on investor protection and the public interest; (2) the impact of the guarantee provision of such section 3(a)(2) on competition between banks and insurance companies and between domestic and foreign guarantors; (3) whether, and under what circumstances, debt securities guaranteed by insurance policies should be exempt from registration under the Securities Act of 1933; (4) an analysis of the impact of such an exemption on investor protection and the public interest; and (5) such other issues as the Commission deems relevant. (b) CONSULTATION.—In conducting the study required by subsection (a), the Commission shall consult with and solicit comment from the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, and other Federal bank regulatory agencies. (c) REPORT.—The Securities and Exchange Commission shall, on or before 6 months after the date of enactment of this Act, submit a report to the Congress containing— (1) the results of its study under this section; (2) the actions it proposes to take on the basis of its study; and (3) recommendations for legislation. A^;

TITLE n—DEPOSITORY INSTITUTIONS

SEC. 201. DEPOSITORY INSTITUTIONS. (a) AMENDMENT TO CHAPTER 31 OF TITLE 31, UNITED STATES

Regulations.

12 USC 12 USC 12 USC 12 USC

1818. 1464. 1730. 1786.

CODE.—Section 3121 of title 31, United States Code, is amended by adding at the end thereof the following: "(h)(1) The Secretary shall prescribe by regulation standards for the safeguarding and use of obligations issued under this chapter, and obligations otherwise issued or guaranteed as to principal or interest by the United States. Such regulations shall apply only to a depository institution that is not a government securities broker or a government securities dealer and that holds such obligations as fiduciary, custodian, or otherwise for the account of a customer and not for its own account. Such regulations shall provide for the adequate segregation of obligations so held, including obligations which are purchased or sold subject to resale or repurchase. "(2) Violation of a regulation prescribed under paragraph (1) shall constitute adequate basis for the issuance of an order under section 5239(a) or (b) of the Revised Statutes (12 U.S.C. 93(a) or (b)), section 8(b) or 8(c) of the Federal Deposit Insurance Act, section 5(d)(2) or 5(d)(3) of the Home Owners' Loan Act of 1933, section 407(e) or 407(f) of the National Housing Act, or section 206(e) or 206(f) of the Federal Credit Union Act. Such an order may be issued with respect to a depository institution by its appropriate regulatory agency and with

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