Page:United States Statutes at Large Volume 92 Part 3.djvu/1014

 92 STAT. 3646

PUBLIC LAW 95-630—NOV. 10, 1978

this subsection. The Board may further prescribe rules providing a reasonable period of time after the date of enactment of this subsection within which the amount of outstanding loans or extensions of credit made prior to such date of enactment shall be reduced so as to conform to the limitations of this subsection.". SEC. 105. (a) Section 5 of the B a n k Holding Company Act of 1956, as amended (12 U.S.C. 1844), is amended by adding at the end thereof the following new subsection: Bank holding " (e)(1) Notwithstanding any other provision of this Act, the Board company, may, whenever it has reasonable cause to believe that the continuation termination. by a bank holding company of any activity or of ownership or control Notice, hearing of any of its nonbank subsidiaries, other than a nonbank subsidiary opportunity. of a bank, constitutes a serious risk to the financial safety, soundness, or stability of a bank holding company subsidiary bank and is inconsistent with sound banking principles or with the purposes of this Act or with the Financial Institutions Supervisory Act of 1966, order 12 USC 1464 note. the bank holding company or any such nonbank subsidiaries, after due notice and opportunity for hearing, and after considering the views of the bank's p r i m a r y supervisor, which shall be the Comptroller of the Currency in the case of a national bank or the Federal Deposit Insurance Corporation and the appropriate State supervisory authority in the case of an insured nonmember bank, to terminate such activities or to terminate (within one hundred and twenty days or such longer period as the B o a r d may direct in unusual circumstances) its ownership or control of any such subsidiary either by sale or by distribution of the shares of the subsidiary to the shareholders of the bank holding company. Such distribution shall be p r o r a t a with respect to all of the shareholders of the distributing bank holding company, and the holding company shall not make any charge to its shareholders arising out of such a distribution. Enforcement and " (2) The Board may in its discretion apply to the United States jurisdiction. district court within the jurisdiction of which the principal office of the holding company is located, for the enforcement of any effective and outstanding order issued under this section, and such court shall have jurisdiction and power to order and require compliance therewith, but except as provided in section 9 of this Act, no court shall have jurisdiction to affect by injunction or otherwise the issuance or enforcement of any notice or order under this section, or to review, modify, suspend, terminate, or set aside any such notice or order.". (b)(1) Section 408(h) of the National Housing Act (12 U.S.C. 1780a(h)) is amended by adding immediately after "under subsection (a)(2)(D) " in paragraph s (3)(A) and (3)(B) of subsection (h) the phrase "or under subsection (h)(5) " and is amended by redesignating paragraph (h)(5) as (h)(6) and by adding a new paragraph (h) (5) to read as follows: Savings and loan " (5)(A) Notwithstanding any other provision of this section, the holding company, Corporation may, whenever it has reasonable cause to believe that the termination. continuation by a savings and loan holding company of any activity Notice, hearing or of ownership or control of any of its noninsured subsidiaries constiopportunity. tutes a serious risk to the financial safety, soundness, or stability of a savings and loan holding company's subsidiary insured institution and is inconsistent with the sound operation of an insured savings and loan institution or with the purposes of this section or with the Financial Institutions Supervisory Act, order the savings and loan holding company or any of its subsidiaries, after due notice and opportunity for hearing, to terminate such activities or to terminate (within one hundred and twenty days or such longer period as the Rules.

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