Page:United States Statutes at Large Volume 101 Part 1.djvu/662

 101 STAT. 632

PUBLIC LAW 100-86—AUG. 10, 1987

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"(iii) A holding company or another bank that is not a bridge bank assumes all, or substantially all of the t/iv » deposits or other liabilities of a bridge bank. "(iv) A period of 2 years following the date the bridge bank was organized expires without any other disposiM: '/" ' tion of the assets and liabilities of the bank having occurred. "(B) EXTENSION ALLOWED FOR i YEAR.—If the Board of Directors finds, after consultation with the Comptroller of '^ r the Currency, that an extension of time for winding up the affairs of the bank is in the best interest of the depositors of the closed bank and the public, the Corporation may extend the time period specified in subparagraph (A)(iv) for not to exceed one year. "(11) 2 OR MORE BANKS.—The Corporation, in the Corporation's discretion, may establish a bridge bank under this subsection to assume the deposits of, assume any other liabilities of, and purchase any assets of 2 or more closed banks.". (b) DEFINITIONS.—Section 3(i) of the Federal Deposit Insurance Act (12 U.S.C. 1813(i)) is amended to read as follows: "(i) N E W BANK AND BRIDGE BANK DEFINED.—
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Ante, p. 629.

"(1) N E W BANK.—The term 'new bank' means a new national bank, other than a bridge bank, organized by the Corporation in 5.. accordance with section 11(h). "(2) BRIDGE BANK.—The term 'bridge bank' means a new national bank organized by the Corporation in accordance with ' section ll(i).". SEC. 504. CONVERSIONS. (a) AMENDMENT TO THE NATIONAL HOUSING ACT.—Section 403 of

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the National Housing Act (12 U.S.C. 1726) is amended by adding at the end thereof the following: "(e) If, upon application, and pursuant to a plan of conversion to an institution of a type eligible to be an insured institution, the Corporation, in its discretion, determines to grant insurance of accounts to a savings bank that is an insured bank (as the term 'insured bank' is defined in section 3(h) of the Federal Deposit Insurance Act), such insurance shall become effective at such time as the Corporation stipulates, at which time such institution automatically shall lose its status as such an insured bank. No change of deposit insurance agencies from the Federal Deposit Insurance Corporation to the Corporation shall be treated, for the purposes of section 18(i) of the Federal Deposit Insurance Act, as involving a conversion to a noninsured bank or institution, except that the Corporation shall provide the Federal Deposit Insurance Corporation with notification of any application that, if granted, would involve such a change of deposit insurance agencies, shall consult with tht Corporation before disposing of the application, and shall provide the Federal Deposit Insurance Corporation with notification of the determination with respect to such application.". flj) AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT.— (1) SECTION 18 (c) APPLICABILITY.—Section 18(c)(12) of the Fed-

eral Deposit Insurance Act (12 U.S.C. 1828(c)(12)) is amended to read as follows: "(12) The provisions of this subsection shall not apply to any transaction where the acquiring, assuming, or resulting institution is an insured Federal savings bank or an institution insured by the

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