or order if the effect of such action would be to
impede or prevent an insured bank or insured
institution that is located in another State from
qualifying to maintain or defend in court any
action which could be maintained or defended
under similar circumstances by a company that
is located in such other State and that is not
an insured depository institution, if the insured
depository institution does not establish or op-
erate in that State a ‘‘domestic branch’’.
(B) EXCEPTION.—Where the maintenance
or defense of a court action referred to in sub-
paragraph (A) by a company that is located in
such other State and that is not an insured de-
pository institution is subject to certain condi-
tions, the maintenance or defense of such an
action by an insured depository institution lo-
cated in such other State may be subject to
those same conditions, if such conditions are
applied in a nondiscriminatory manner to fulfill
legitimate State objectives and do not have the
effect, directly or indirectly, of denying insured
depository institutions located in other States
the opportunity to maintain or defend such ac-
tions.
(4) OTHER RESTRICTIONS.—Except for licens-
ing, marketing, compensation, employment, or other
requirements applied in a nondiscriminatory manner
to fulfill legitimate State regulatory objectives which
are not inconsistent with the purposes of this Act,
no State may, through legislative, administrative, ex-
ecutive, or judicial action, impede or prevent a finan-
cial services holding company or affiliate thereof
from utilizing or compensating any agent (including
an affiliated insured depository institution acting in
accordance with section 18(r) of the Federal Deposit
Insurance Act), solicitor, broker, employee, or other
person located in that State and representing in any
lawful capacity any insured depository institution or
any such financial services holding company or such
affiliate thereof, if, where any such person is being
utilized or compensated for the performance of ac-
tivities on behalf of an insured depository institu-
tion, such activities do not result in the establish-
ment or operation by the insured depository institu-
tion of a domestic branch at any location other than
the main or branch offices of such depository insti-
tution.
(5) DEFINITIONS.—As used in paragraphs (2)
through (4) only—
(A) the term ‘‘affiliate’’ means a person
that directly or indirectly controls or is con-
trolled by, or is under common control with the
person specified; and
(B) the term ‘‘control’’, including the
terms ‘‘controlled by’’ and ‘‘under common con-
trol with’’, means the power, directly or indi-
rectly, to direct the management or policies of
a person and shall be presumed to exist if any
person, directly or indirectly, owns, controls, or
holds with power to vote 10 percent or more of
the voting securities of any other person.
(g) SECURITIES, INSURANCE, AND REAL ESTATE AC-
TIVITIES OF INSURED BANKS AND INSURED INSTITU-
TIONS.—
(1) IN GENERAL.—No insured depository insti-
tution that is an affiliate of a financial services hold-
ing company shall directly engage in—
(A) dealing in or underwriting securities,
or purchasing or selling securities as agent, ex-
cept to the extent that such activities are per-
formed only with regard to obligations of the
United States or would be authorized for a na-
tional bank under the first section of the Act of
September 28, 1962 (12 U.S.C. 92a);
(B) insurance underwriting; or
(C) real estate investment or development,
except to the extent that such activities are per-
formed in relation to the premises of the in-
sured depository institution or in connection
with securing or collecting a debt previously
contracted in good faith, or would be authorized
for a national bank under the first section of
the Act of September 28, 1962 (12 U.S.C.
92a).
(2) CONSTRUCTION.—Nothing contained in this
subsection shall be construed to prohibit or im-
pede—
(A) a financial services holding company or
any affiliate of a financial services holding com-
pany other than an insured depository institu-
tion from engaging in any of the activities set
forth in paragraph (1); or
(B) any employee of an insured depository
institution that is an affiliate of a financial
services holding company from promoting or
advertising products or services of an affiliate
of such insured depository institution that en-
gages in any of such activities.
(3) INSURANCE
AND
REAL
ESTATE
ACTIVI-
TIES.—No bank holding company which becomes a
financial services holding company and no financial
services holding company which did not at any time
prior to becoming such a holding company may, di-
rectly or indirectly, engage in insurance agency or
real estate brokerage activities shall commence any
insurance agency or real estate brokerage activities
not permissible for bank holding companies under
section 4(c)(8) of the Bank Holding Company Act of
1956, unless such activities are conducted through
an existing insurance agency or real estate broker-
age firm, as the case may be, acquired directly or in-
directly by such financial services holding company
or through any successor to such insurance agency
or real estate brokerage, and unless such acquired
insurance agency or real estate brokerage firm shall
have been actively engaged in such insurance or real
estate agency activities during the 2-year period pre-
ceding the date of enactment of this Act.
(4) EXISTING
CONTRACTS.—Nothing in this
subsection shall require the breach of any contract
entered into before the date of enactment of this
Act.
(h) TYING AND INSIDER LENDING PROVISIONS.—