Page:United States Statutes at Large Volume 124.djvu/1638

 124 STAT. 1612 PUBLIC LAW 111–203—JULY 21, 2010 to advance funds to or on behalf of a person pursuant to a contractual commitment; and ‘‘(C) any credit exposure to a person arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction between the national banking association and the person;’’; (2) in paragraph (2), by striking the period at the end and inserting ‘‘; and’’; and (3) by adding at the end the following: ‘‘(3) the term ‘derivative transaction’ includes any trans- action that is a contract, agreement, swap, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodities, securities, currencies, interest or other rates, indices, or other assets.’’. (b) SAVINGS ASSOCIATIONS.—Section 5(u)(3) of the Home Owners’ Loan Act (12 U.S.C. 1464(u)(3)) is amended by striking ‘‘Director’’ each place that term appears and inserting ‘‘Comptroller of the Currency’’. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect 1 year after the transfer date. SEC. 611. CONSISTENT TREATMENT OF DERIVATIVE TRANSACTIONS IN LENDING LIMITS. (a) AMENDMENT.—Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following: ‘‘(y) STATE LENDING LIMIT TREATMENT OF DERIVATIVES TRANS- ACTIONS.—An insured State bank may engage in a derivative trans- action, as defined in section 5200(b)(3) of the Revised Statutes of the United States (12 U.S.C. 84(b)(3)), only if the law with respect to lending limits of the State in which the insured State bank is chartered takes into consideration credit exposure to deriva- tive transactions.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall take effect 18 months after the transfer date. SEC. 612. RESTRICTION ON CONVERSIONS OF TROUBLED BANKS. (a) CONVERSION OF A NATIONAL BANKING ASSOCIATION.—The Act entitled ‘‘An Act to provide for the conversion of national banking associations into and their merger or consolidation with State banks, and for other purposes.’’ (12 U.S.C. 214 et seq.) is amended by adding at the end the following: ‘‘SEC. 10. PROHIBITION ON CONVERSION. ‘‘A national banking association may not convert to a State bank or State savings association during any period in which the national banking association is subject to a cease and desist order (or other formal enforcement order) issued by, or a memorandum of understanding entered into with, the Comptroller of the Currency with respect to a significant supervisory matter.’’. (b) CONVERSION OF A STATE BANK OR SAVINGS ASSOCIATION.— Section 5154 of the Revised Statutes of the United States (12 U.S.C. 35) is amended by adding at the end the following: ‘‘The Comptroller of the Currency may not approve the conversion of a State bank or State savings association to a national banking association or Federal savings association during any period in which the State bank or State savings association is subject to 12 USC 214d. 12 USC 1828 note. 12 USC 84 note.