(as added by the Gramm-Leach-Bliley Act) is
amended to read as follows:
‘‘(2) LIMITED EXCLUSIONS FROM COMMUNITY
NEEDS REQUIREMENTS FOR NEWLY ACQUIRED DE-
POSITORY
INSTITUTIONS.—Any depository institu-
tion acquired by a bank holding company during the
12-month period preceding the submission of a no-
tice under paragraph (1)(D) and any depository in-
stitution acquired after the submission of such no-
tice may be excluded for purposes of paragraph
(1)(C) during the 12-month period beginning on the
date of such acquisition if—
‘‘(A) the bank holding company has sub-
mitted an affirmative plan to the appropriate
Federal banking agency to take such action as
may be necessary in order for such institution
to achieve a rating of ‘satisfactory record of
meeting community credit needs’, or better, at
the next examination of the institution; and
‘‘(B) the plan has been accepted by such
agency.’’.
(B) Section 4(m) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(m)), as
added by the Gramm-Leach-Bliley Act, is
amended by striking paragraphs (3) and (4)
and inserting the following new paragraphs:
‘‘(3) AUTHORITY
TO
IMPOSE
LIMITATIONS.—
Until the conditions described in a notice to a finan-
cial holding company under paragraph (1) are
corrected—
‘‘(A) the Board may impose such limita-
tions on the conduct or activities of the com-
pany or any affiliate of the company as the
Board determines to be appropriate under the
circumstances; and
‘‘(B) the appropriate Federal banking
agency may impose such limitations on the con-
duct or activities of an affiliated depository in-
stitution or subsidiary of a depository institu-
tion as the appropriate Federal banking agency
determines to be appropriate under the cir-
cumstances.
‘‘(4) FAILURE TO CORRECT.—If, after receiving
a notice under paragraph (1), a financial holding
company does not—
‘‘(A) execute and implement an agreement
in accordance with paragraph (2);
‘‘(B) comply with any limitations imposed
under paragraph (3);
‘‘(C) in the case of a notice of failure to
comply with subsection (l)(1)(A), restore each
depository institution subsidiary to well capital-
ized status before the end of the 180-day period
beginning on the date such notice is received by
the company (or such other period permitted by
the Board); or
‘‘(D) in the case of a notice of failure to
comply with subparagraph (B) or (C) of sub-
section (l)(1), restore compliance with any such
subparagraph by the date the next examination
of the depository institution subsidiary is com-
pleted or by the end of such other period as the
Board determines to be appropriate,
the Board may require such company, under such
terms and conditions as may be imposed by the
Board and subject to such extension of time as may
be granted in the Board’s discretion, to divest con-
trol of any depository institution subsidiary or, at
the election of the financial holding company, in-
stead to cease to engage in any activity conducted by
such company or its subsidiaries pursuant to this
section.’’.
(C) Section 5(a) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1844(a)), as
amended by the Gramm-Leach-Bliley Act, is
amended by striking ‘‘4(l)(1)(C)’’ and inserting
‘‘4(l)(1)(D)’’.
(D) Section 8(c) of the International
Banking Act of 1978 (12 U.S.C. 3106(c)), as
amended by the Gramm-Leach-Bliley Act, is
amended by striking ‘‘4(l)(1)(C)’’ and inserting
‘‘4(l)(1)(D)’’.
(E) Section 804 of the Community Rein-
vestment Act of 1977 (12 U.S.C. 2903) is
amended by striking subsection (c), as added by
the Gramm-Leach-Bliley Act.
(b) FINANCIAL SUBSIDIARIES.—
(1) IN GENERAL.—Section 5136A(a)(2)(C) of
the Revised Statutes of the United States (as added
by the Gramm-Leach-Bliley Act) is amended to read
as follows:
‘‘(C) the national bank and each insured
depository institution affiliate of the national
bank—
‘‘(i) are well capitalized;
‘‘(ii) are well managed: and
‘‘(iii) have achieved a rating of ‘satis-
factory record of meeting community credit
needs’, or better, at the most recent exam-
ination of each such bank or institution;’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—Section 5136A(a) of the Revised Statutes of
the United States (as added by the Gramm-Leach-
Bliley Act) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(8) LIMITED EXCLUSIONS FROM COMMUNITY
NEEDS REQUIREMENTS FOR NEWLY AFFILIATED DE-
POSITORY
INSTITUTIONS.—Any depository institu-
tion which becomes an affiliate of a national bank
during the 12-month period preceding the date of an
approval by the Comptroller of the Currency under
paragraph (1)(F) for such bank, and any depository
institution which becomes an affiliate of the national
bank after such date, may be excluded for purposes
of paragraph (1)(C)(iii) during the 12-month period
beginning on the date of such affiliation if—
‘‘(A) the national bank or such depository
institution has submitted an affirmative plan to
the appropriate Federal banking agency to take
such action as may be necessary in order for
such institution to achieve a rating of ‘satisfac-
tory record of meeting community credit needs’,