Page:United States Statutes at Large Volume 110 Part 4.djvu/569

 PUBLIC LAW 104-208—SEPT. 30, 1996 110 STAT. 3009-406 "(b) DEFINITIONS.— For purposes of this section— "(1) the term 'affiliate' has the same meaning as in section 2 of the Banking Act of 1933; and "(2) the term 'well capitalized' has the same meaning as in section 38(b) of the Federal Deposit Insurance Act.". SEC. 2207. ELIMINATION OF APPROVAL REQUIREMENT FOR DIVESTITURES. Section 2(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(g)) is amended— (1) in paragraph (1), by adding "and" at the end; (2) in paragraph (2), by striking "; and" and inserting a period; and (3) by striking paragraph (3). SEC. 2208. STREAMLINED NONBANKING ACQUISITIONS BY WELL CAPITALIZED AND WELL MANAGED BANKING ORGANIZA- TIONS. (a) NOTICE REQUIREMENTS.— Section 4(j) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(j)) is amended— (1) in paragraph (1)(A), by striking "No" and inserting "Except as provided in paragraph (3), no"; and (2) by adding at the end the following new paragraphs: "(3) No NOTICE REQUIRED FOR CERTAIN TRANSACTIONS.— No notice under paragraph (1) of this subsection or under subsection (c)(8) or (a)(2)(B) is required for a proposal by a bank holding company to engage in any activity or acquire the shares or assets of any company, other than an insured depository institution, if the proposal qualifies under paragraph (4). "(4) CRITERIA FOR STATUTORY APPROVAL.— A proposal qualifies under this paragraph if all of the following criteria are met: "(A) FINANCIAL CRITERIA.—Both before and immediately after the proposed transaction— "(i) the acquiring bank holding company is well capitalized; "(ii) the lead insured depository institution of such holding company is well capitalized; "(iii) well capitalized insured depository institutions control at least 80 percent of the aggregate total risk-weighted assets of insured depository institutions controlled by such holding company; and "(iv) no insured depository institution controlled by such holding company is undercapitalized. "(B) MANAGERIAL CRITERIA.— "(i) WELL MANAGED. — At the time of the transaction, the acquiring bank holding company, its lead insured depository institution, and insured depository institutions that control at least 90 percent of the aggregate total risk-weighted assets of insured depository institutions controlled by such holding company are well managed. " (ii) LIMITATION ON POORLY MANAGED INSTITU- TIONS.— Except as provided in paragraph (6), no insured depository institution controlled by the acquiring bank holding company has received 1 of the 2

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