Page:United States Statutes at Large Volume 113 Part 2.djvu/368

 113 STAT. 1388 PUBLIC LAW 106-102—NOV. 12, 1999 bank (as defined in section 2 of the Bank Holding Company Act of 1956) other than— "(I) a registered broker or dealer; or "(11) an affiliate that is engaged in merchant banking, as described in section 4(k)(4)(H) of the Bank Holding Company Act of 1956. "(vii) PRIVATE SECURITIES OFFERINGS.— The bank— "(I) effects sales as part of a primary offering of securities not involving a public offering, pursuant to section 3(b), 4(2), or 4(6) of the Securities Act of 1933 or the rules and regulations issued thereunder; "(II) at any time after the date that is 1 year after the date of the enactment of the Gramm- Leach-Bliley Act, is not affiliated with a broker or dealer that has been registered for more than 1 year in accordance with this Act, and engages in dealing, market making, or underwriting activities, other than with respect to exempted securities; and "(III) if the bank is not affiliated with a broker or dealer, does not effect any primary offering described in subclause (I) the aggregate amount of which exceeds 25 percent of the capital of the bank, except that the limitation of this subclause shall not apply with respect to any sale of government securities or municipal securities, " (viii) SAFEKEEPING AND CUSTODY ACTIVITIES. — "(I) IN GENERAL.— The bank, as part of customary banking activities— "(aa) provides safekeeping or custody services with respect to securities, including the exercise of warrants and other rights on behalf of customers; "(bb) facilitates the transfer of funds or securities, as a custodism or a clearing agency, in connection with the clearance and settlement of its customers' transactions in securities; "(cc) effects securities lending or borrowing transactions with or on behalf of customers as part of services provided to customers pursuant to division (aa) or (bb) or invests cash collateral pledged in connection with such transactions; "(dd) holds securities pledged by a customer to another person or securities subject to purchase or resale agreements involving a customer, or facilitates the pledging or transfer of such securities by book entry or as otherwise provided under applicable law, if the bank maintains records separately identifying the securities and the customer; or "(ee) serves as a custodian or provider of other related administrative services to any

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