Page:United States Statutes at Large Volume 80 Part 1.djvu/272

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PUBLIC LAW 89-485-JULY 1, 1966 Public Law 89-485

July 1, 1966 [H. R. 7371]

[80 STAT.

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AN ACT r^Q amend the Bank Holding Company Act of 1956.

Be it enacted by the Senate and House of Representatives of the co^pan"°Act of United States of America in Congress assembled, That subsection (a) •19 56, amendments, of section 2 of tliG Bank Holding Company Act of 1956 (12 U.S.C. "B^nk^hofdin 1841(a)) is amended to read as follows: company."" " " (a) ' B a n k holding company'means any company (1) that directly or indirectly owns, controls, or holds with power to vote 25 per centum or more of the voting shares of each of two or more banks or of a company that is or becomes a bank holding company by virtue of this Act, or (2) that controls in any manner the election of a majority of the directors of each of two or more banks; and, for the purposes of this Act, any successor to any such company shall be deemed to be a bank holding company from the date as of which such predecessor company became a bank holding company. Notwithstanding the foregoing, (A) no bank and no company owning or controlling voting shares of a bank shall be a bank holding company by virtue of such bank's ownership or control of shares in a fiduciary capacity, except as provided in paragraphs (2) and (3) of subsection (g) of this Post, p. 237. section, (B) no company shall be a bank holding company by virtue of its ownership or control of shares acquired by it in connection with its underwriting of securities if such shares are held only for such period of time as will permit the sale thereof on a reasonable basis, and (C) no company formed for the sole purpose of participating in a proxy solicitation shall be a bank holding company by virtue of its control of voting rights of shares acquired in the course of such solicitation." SEC. 2. Subsection (b) of section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(b)) is amended to read as follows: "Company." " (j^^ 'Company' meaus any corporation, business trust, association, or similar organization, or any other trust unless by its terms it must terminate within twenty-five years or not later than twenty-one years and ten months after the death of individuals living on the effective date of the trust, but shall not include (1) any corporation the majority of the shares of which are owned by the United States or by any State, or (2) any partnership." SEC. 3. Subsection (c) of section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1811(c)) is amended to read as follows: "Bank". "^Q^ 'Bank' means any institution that accepts deposits that the depositor has a legal right to withdraw on demand, but shall not include any organization operating under section 25 or section 25(a) .,^c.^!^*i//^' of the Federal Reserve Act, or any organization that does not do busi41 Stat. 378;

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Post, p."241. ness within the United States. 'District bank means any bank orga12 USC 601-631. nized or operating under the Code oi Law for the District of 'Districtbank.

"Subsidiary."

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Columbia." SEC. 4. Subsection (d) of section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(d)) is amended to read as follows: «^^j-j 'Subsidiary', with respect to a specified bank holding company, means (1) any company 25 per centum or more of whose voting shares (excluding shares owned by the United States or by any company wholly owned by the United States) is directly or indirectly owned or controlled by such bank holding company, or is held by it with power to vote; or (2) any company the election of a majority of whose directors is controlled in any manner by such bank holding company." SEC. 5. Subsection (g) of section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(g)) is repealed.

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