Page:United States Statutes at Large Volume 120.djvu/2001

 120 STAT. 1970

PUBLIC LAW 109–351—OCT. 13, 2006 (2) by striking the comma after ‘‘his shares shall equal’’.

SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL BANKS.

(a) IN GENERAL.—Section 5199 of the Revised Statutes of the United States (12 U.S.C. 60) is amended to read as follows: ‘‘SEC. 5199. NATIONAL BANK DIVIDENDS.

‘‘(a) IN GENERAL.—Subject to subsection (b), the directors of any national bank may declare a dividend of so much of the undivided profits of the bank as the directors judge to be expedient. ‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIRCUMSTANCES.— A national bank may not declare and pay dividends in any year in excess of an amount equal to the sum of the total of the net income of the bank for that year and the retained net income of the bank for the preceding 2 years, minus the sum of any transfers required by the Comptroller of the Currency and any transfers required to be made to a fund for the retirement of any preferred stock, unless the Comptroller of the Currency approves the declaration and payment of dividends in excess of such amount.’’. (b) CLERICAL AMENDMENT.—The table of sections for chapter three of title LXII of the Revised Statutes of the United States is amended by striking the item relating to section 5199 and inserting the following: ‘‘5199. National bank dividends.’’. SEC.

303.

REPEAL OF OBSOLETE LIMITATION ON REMOVAL AUTHORITY OF THE COMPTROLLER OF THE CURRENCY.

Section 8(e)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(4)) is amended by striking the 5th sentence. SEC. 304. REPEAL OF OBSOLETE PROVISION IN THE REVISED STATUTES.

Section 5143 of the Revised Statutes of the United States (12 U.S.C. 59) is amended to read as follows: ‘‘SEC. 5143. REDUCTION OF CAPITAL.

‘‘(a) IN GENERAL.—Subject to the approval of the Comptroller of the Currency, a national banking association may, by a vote of shareholders owning, in the aggregate, two-thirds of its capital stock, reduce its capital. ‘‘(b) SHAREHOLDER DISTRIBUTIONS AUTHORIZED.—As part of its capital reduction plan approved in accordance with subsection (a), and with the affirmative vote of shareholders owning at least two thirds of the shares of each class of its stock outstanding (each voting as a class), a national banking association may distribute cash or other assets to its shareholders.’’. SEC. 305. ENHANCING THE AUTHORITY FOR BANKS TO MAKE COMMUNITY DEVELOPMENT INVESTMENTS.

(a) NATIONAL BANKS.—The paragraph designated as the ‘‘Eleventh.’’ of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended to read as follows: ‘‘Eleventh. To make investments directly or indirectly, each of which promotes the public welfare by benefiting primarily lowand moderate-income communities or families (such as by providing

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