Page:United States Statutes at Large Volume 101 Part 1.djvu/608

 101 STAT. 578

PUBLIC LAW 100-86—AUG. 10, 1987 "(B) TRANSACTION ALLOWED IF NOT DISAPPROVED.—Unless

vf



12 USC 1726.

12 USC 1464.

it

the Corporation within such 60-day notice period disapproves the proposed holding company formation, or extends for another 30 days the period during which such disapproval may be issued, the insured institution providing such notice may proceed with the transaction, if the requirements of paragraph (2) have been met. "(C) GROUNDS FOR DISAPPROVAL.—The Corporation may disapprove any proposed holding company formation only i^"(i) such disapproval is necessary to prevent unsafe or unsound practices; "(ii) the financial or management resources of the insured institution involved warrant disapproval; "(iii) the insured institution fails to furnish the information required under subparagraph (A); or "(iv) the insured institution fails to comply with the, requirement of paragraph (2). "(D) RETENTION OF CAPITAL ASSETS.—In connection with the transaction described in paragraph (1), an insured institution may, subject to the approval of the Corporation, retain capital assets at the holding company level to the extent that such capital exceeds adequate reserves as prescribed pursuant to section 403(b) or the comparable provisions of State or Federal law. "(4) OWNERSHIP.—Persons having ownership rights in the mutual institution pursuant to section 5G3)(1)(B) of the Home Owners' Loan Act of 1933 or State law shall have the same ownership rights with respect to the mutual holding company. "(5) PERMITTED ACTIVITIES.—A mutual holding company may engage only in the following activities: "(A) Investing in the stock of an insured institution. "(B) Acquiring a mutual institution through the merger of such institution into an insured institution subsidiary of such holding company or an interim savings institution subsidiary of such holding company. "(C) Subject to paragraph (6), merging with or acquiring another holding company, one of whose subsidiaries is an insured institution. "(D) Investing in a corporation the capital stock of which is available for purchase by an insured institution under Federal law or under the law of any State where the subsidiary insured institution or institutions have their home offices. "(E) Engaging in the activities described in subsection (c)(2), except subparagraph (B). "(6) LIMITATIONS ON CERTAIN ACTIVITIES OF ACQUIRED HOLDING COMPANIES.—

"(A) NEW ACTIVITIES.—If a mutual holding company acquires or merges with another holding company under paragraph (5)(C), the holding company acquired or the holding company resulting from such merger or acquisition may only invest in assets and engage in activities which are authorized under paragraph (5). "(B) GRACE PERIOD FOR DIVESTING PROHIBITED ASSETS OR DISCONTINUING PROHIBITED ACTIVITIES.—Not later than 2

years following a merger or acquisition described in para-

�