I 
114TH CONGRESS 
1ST SESSION H. R. 1661 
To amend the Federal Deposit Insurance Act to allow mutual capital 
certificates to satisfy capital requirements for mutual depositories. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 26, 2015 
Mr. ROTHFUS (for himself, Mr. STIVERS, and Mr. BARR) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To amend the Federal Deposit Insurance Act to allow mutual 
capital certificates to satisfy capital requirements for mu-
tual depositories. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mutual Bank Capital 
Opportunity Act of 2015’’. 
SEC. 2. TREATMENT OF MUTUAL CAPITAL CERTIFICATES. 
(a) IN GENERAL.—Section 38 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831o) is amended— 
(1) in subsection (b)(2)— 
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(A) by redesignating subparagraphs (F) 
through (I) as subparagraphs (H) through (K), 
respectively; and 
(B) by inserting after subparagraph (E) 
the following new subparagraphs: 
‘‘(F) MUTUAL
CAPITAL
CERTIFICATE.— 
The term ‘mutual capital certificate’ means a 
financial instrument issued by a mutual deposi-
tory pursuant to subsection (c)(1)(C) that— 
‘‘(i) is subordinate to all claims 
against such mutual depository; 
‘‘(ii) is unsecured by the assets of 
such mutual depository; 
‘‘(iii) does not permit preemptive 
rights; 
‘‘(iv) does not provide voting or mem-
ber rights to the holder unless the board of 
directors of such mutual depository pro-
poses to change the specific terms of any 
class of such certificates in a manner ad-
verse to the interests of the holder; 
‘‘(v) is not eligible for use as collateral 
for any loan made by such mutual deposi-
tory; 
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‘‘(vi) if declared by the board of direc-
tors of such mutual depository, entitles the 
holder to a payment of fixed, variable, or 
participating dividends; and 
‘‘(vii) is not redeemable until the date 
that is 5 years after the date of issuance, 
except in the case of merger, conversion, or 
consolidation of such mutual depository, or 
reorganization of such mutual depository 
into a mutual holding company or a Fed-
eral mutual bank holding company (as 
such term is defined in section 5133A(a) 
of the Revised Statutes of the United 
States). 
‘‘(G) MUTUAL
DEPOSITORY.—The term 
‘mutual depository’ means an insured deposi-
tory institution operating in a non-stock form, 
including a Federal non-stock depository and 
any form of non-stock depository provided for 
under State law, the deposits of which are in-
sured by an instrumentality of the Federal Gov-
ernment.’’; and 
(2) in subsection (c)(1)— 
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(A) in subparagraph (A), by inserting 
‘‘and subparagraph (C)’’ after ‘‘subparagraph 
(B)(ii)’’; and 
(B) by inserting after subparagraph (B) 
the following new subparagraph: 
‘‘(C) MUTUAL CAPITAL CERTIFICATES.—A 
mutual depository is authorized to issue mutual 
capital certificates that shall qualify as common 
equity Tier 1 capital (as such term is defined 
by the appropriate Federal banking agency) for 
purposes of any capital requirements mandated 
by any Federal law or regulation.’’. 
(b) REGULATIONS.—Not later than 180 days after 
the date of enactment of this section, the appropriate Fed-
eral banking agencies (as defined in section 3 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813)) shall jointly 
issue regulations to implement this section. 
Æ 
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