Page:United States Statutes at Large Volume 108 Part 3.djvu/591

 PUBLIC LAW 103-328—SEPT. 29, 1994 108 STAT. 2343 "(A) the authority of any depository institution to act as an agent on behalf of any other depository institution under any other provision of law; or "(B) whether a depository institution which conducts any activity as an agent on behalf of any other depository institution under any other provision of law shall be considered to be a branch of such other institution. "(5) AGENCY RELATIONSHIP REQUIRED TO BE CONSISTENT WITH SAFE AND SOUND BANKING PRACTICES.— An agency relationship between depository institutions under paragraph (1) or (6) shall be on terms that are consistent with safe and sound banking practices and all applicable regulations of any appropriate Federal banking agency. " (6) AFFILIATED INSURED SAVINGS ASSOCIATIONS. — An insured savings association which was an affiliate of a bank on July 1, 1994, may conduct activities as Ein agent on behalf of such bank in the same manner as an insured bank affiliate of such bank may act as agent for such bank under this subsection to the extent such activities are conducted only in— "(A) any State in which— "(i) the bank is not prohibited from operating a branch under any provision of Federal or State law; and "(ii) the savings sissociation maintained an office or branch and conducted business as of July 1, 1994; or "(B) any State in which— "(i) the bank is not expressly prohibited from operating a branch under a State law described in section 44(a)(2); and "(ii) the savings association maintained a main office and conducted business as of July 1, 1994.". (e) EFFECTIVE DATE.The amendments made by this section 12 USC 1828 shall take effect at the end of the 1-year period beginning on ^°^- the date of the enactment of this Act. SEC. 102. INTERSTATE BANK MERGERS. (a) IN GENERAL.— The Federal Deposit Insurance \ct (12 U.S.C. 1811 et seq.) is amended by adding at the end the following new section: " SEC. 44. INTERSTATE BANK MERGERS. 12 USC 1831u. "(a) APPROVAL OF INTERSTATE MERGER TRANSACTIONS AUTHOR- IZED.— "(1) IN GENERAL.—Beginning on June 1, 1997, the responsible agency may approve a merger transaction under section 18(c) between insured banks with different home States, without regard to whether such transaction is prohibited under the law of any State. " (2) STATE ELECTION TO PROHIBIT INTERSTATE MERGER TRANSACTIONS.— " (A) IN GENERAL. — Notwithstanding paragraph (1), a merger transaction may not be approved pursuant to paragraph (1) if the transaction involves a bank the home State of which has enacted a law after the date of enactment of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 and before June 1, 1997, that— "(i) applies equally to all out-of-State banks; and

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