Page:United States Statutes at Large Volume 113 Part 2.djvu/340

 113 STAT. 1360 PUBLIC LAW 106-102—NOV. 12, 1999 1841(c)(2)(H)) is amended by inserting ", or that is otherwdse permissible for a bank controlled by a company described in section 4(f)(1)" before the period at the end. (d) ACTIVITIES LIMITATIONS. —Section 4(f)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended— (1) by striking "Paragraph (1) shall cease to apply to any company described in such paragraph if—" and inserting "Subject to paragraph (3), a company described in paragraph (1) shall no longer qualify for the exemption provided under that paragraph if—"; (2) in subparagraph (A)— (A) in clause (ii)(IX), by striking "and" at the end; (B) in clause (ii)(X), by inserting "and" after the semicolon; (C) in clause (ii), by inserting after subclause (X) the following new subclause: "(XI) assets that are derived from, or incidental to, activities in which institutions described in subparagraph (F) or (H) of section 2(c)(2) are permitted to engage;"; and (D) by striking "or" at the end; and (3) by striking subparagraph (B) and inserting the following: "(B) any bank subsidiary of such company— "(i) accepts demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties; and "(ii) engages in the business of making commercial loans (except that, for purposes of this clause, loans made in the ordinary course of a credit card operation shall not be treated as commercial loans); or "(C) after the date of the enactment of the Competitive Equality Amendments of 1987, any bank subsidiary of such company permits any overdraft (including any intraday overdraft), or incurs any such overdraft in the account of the bank at a Federal reserve bank, on behalf of an affiliate, other than an overdraft described in paragraph (3).". "(e) DIVESTITURE REQUIREMENT.— Section 4(f)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(4)) is amended to read as follows: "(4) DIVESTITURE IN CASE OF LOSS OF EXEMPTION. — If any company described in paragraph (1) fails to qualify for the exemption provided under paragraph (1) by operation of paragraph (2), such exemption shall cease to apply to such company and such company shall divest control of each bank it controls before the end of the 180-day period beginning on the date on which the company receives notice from the Board that the company has failed to continue to qualify for such exemption, unless, before the end of such 180-day period, the company has— "(A) either— "(i) corrected the condition or ceased the activity that caused the company to fail to continue to qualify for the exemption; or

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