Page:United States Statutes at Large Volume 113 Part 2.djvu/376

 113 STAT. 1396 PUBLIC LAW 106-102—NOV. 12, 1999 12 USC 1811 SEC. 210. RULE OF CONSTRUCTION. Nothing in this Act shall supersede, affect, or otherwise limit the scope and applicability of the Commodity Exchange Act (7 U.S.C. 1 et seq.). Subtitle B—Bank Investment Company Activities SEC. 211. CUSTODY OF INVESTMENT COMPANY ASSETS BY AFFILI- ATED BANK. (a) MANAGEMENT COMPANIES.— Section 17(f) of the Investment Company Act of 1940 (15 U.S.C. 80a-17(f)) is amended— (1) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; (2) by striking "(f) Every registered" and inserting the following: "(f) CUSTODY OF SECURITIES.— "(1) Every registered"; (3) by redesignating the second, third, fourth, and fifth sentences of such subsection as paragraphs (2) through (5), respectively, and indenting the left margin of such paragraphs appropriately; and (4) by adding at the end the following new paragraph: "(6) The Commission may, after consultation with and taking into consideration the views of the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act), adopt rules and regulations, and issue orders, consistent with the protection of investors, prescribing the conditions under which a bank, or an affiliated person of a bank, either of which is an affiliated person, promoter, organizer, or sponsor of, or principal underwriter for, a registered management company may serve as custodian of that registered management company.". (b) UNIT INVESTMENT TRUSTS.— Section 26 of the Investment Company Act of 1940 (15 U.S.C. 80a-26) is amended— (1) by redesignating subsections (b) through (e) as subsections (c) through (f), respectively; and (2) by inserting after subsection (a) the following new subsection: "(b) The Commission may, after consultation with and taking into consideration the views of the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act), adopt rules and regulations, and issue orders, consistent with the protection of investors, prescribing the conditions under which a bank, or an affiliated person of a bank, either of which is an affiliated person of a principal underwriter for, or depositor of, a registered unit investment trust, may serve as trustee or custodian under subsection (a)(1).". SEC. 212. LENDING TO AN AFFILIATED INVESTMENT COMPANY. Section 17(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-17(a)) is amended— (1) by striking "or" at the end of paragraph (2); (2) by striking the period at the end of paragraph (3) and inserting "; or"; and (3) by adding at the end the following new paragraph:

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