Management Interlocks Revision Act of 1988
PL 100-650 (H.R.4879), enacted 11/10/1988

PUBLIC LAW 100-650—NOV. 10, 1988 
102 STAT. 3819 
Public Law 100-650 
100th Congress 
An Act 
To amend the Depository Institution Management Interlocks Act to revise the 
manner in which the service of directors of depository institutions and depository 
holding companies are regulated, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be referred to as the "Management Interlocks 
Revision Act of 1988". 
SEC. 2. AFFILIATION THRESHOLD. 
Section 202(3)(B) of the Depository Institution Management Inter-
locks Act (12 U.S.C. 3201(3)(B)) is amended by striking "50 per 
centum" each place such term appears and inserting in lieu thereof 
"25 percent". 
SEC. 3. EXCLUSION OF CERTAIN ADVISORY AND HONORARY DIRECTORS. 
Section 202(4) of the Depository Institution Management Inter-
locks Act (12 U.S.C. 8201(4)) is amended by striking out "(including 
an advisory or honorary director)" and inserting in lieu thereof 
"(including an advisory or honorary director, except in the case of a 
depository institution with total assets of less than $100,000,000)". 
SEC. 4. EXCEPTION FOR FAILED OR FAILING INSTITUTIONS WHICH ARE 
ACQUIRED. 
Section 205 of the Depository Institution Management Interlocks 
Act (12 U.S.C. 3204) is amended by adding at the end thereof the 
following new paragraph: 
"(7) A depository institution or a depository holding company 
which— 
"(A) is closed or is in danger of closing, as determined by 
the appropriate Federal depository institutions regulatory 
agency in accordance with regulations prescribed by such 
agency; and 
"(B) is acquired by another depository institution or 
depository holding company, 
during the 5-year period beginning on the date of the acquisi-
tion of the depository institution or depository holding company 
described in subparagraph (A).". 
SEC. .5. LIMITED EXCEPTION FOR DIVERSIFIED SAVINGS AND LOAN 
HOLDING COMPANIES. 
(a) EXCEPTION ESTABLISHED.—Section 205 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3204) is amended 
by inserting after paragraph (7) (as added by section 4 of this Act) 
the following new paragraph: 
"(8)(A) A diversified savings and loan holding company (as 
defined in section 408(aXl)(F) of the National Housing Act) with 
Nov. 10,1988 
[H.R. 4879] 
Management 
Interlocks 
Revision Act of 
1988. 
12 u s e 3201 
note. 
102 STAT. 3820 
PUBLIC LAW 100-650—NOV. 10, 1988 
respect to the service of a director of such company who is also a 
director of any nonaffiliated depository institution or depository 
holding company (including a savings and loan holding com-
pany) if— 
"(i) notice of the proposed dual service is given by such 
diversified savings and loan holding company to— 
"(I) the appropriate Federal depository institutions 
regulatory agency for such company; and 
"(II) the appropriate Federal depository institutions 
regulatory agency for the nonaffiliated 
depository 
institution or depository holding company of which 
such person is also a director, 
not less than 60 days before such dual service is proposed to 
begin; and 
"(ii) the proposed dual service is not disapproved by any 
such appropriate Federal depository institutions regulatory 
agency before the end of such 60-day period. 
"(B) Any appropriate Federal depository institutions regu-
latory agency may disapprove, under subparagraph (A)(ii), a 
notice of proposed dual service by any individual if such agency 
finds that— 
"(i) the dual service cannot be structured or limited so as 
to preclude the dual service's resulting in a monopoly or 
substantial lessening of competition in financial services in 
any part of the United States; 
"(ii) the dual service would lead to substantial conflicts of 
interest or unsafe or unsound practices; or 
"(iii) the diversified savings and loan holding company 
has neglected, failed, or refused to furnish all the informa-
tion required by such agency. 
"(C) Any appropriate Federal depository institutions regu-
latory agency may, at any time after the end of the 60-day 
period referred to in subparagraph (A), require that any dual 
service by any individual which was not disapproved by such 
agency during such period be terminated if a change in cir-
cumstances occurs with respect to any depository institution or 
depository holding company of which such individual is a direc-
tor that would have provided a basis for disapproval of the dual 
service during such period.", 
(b) APPROPRIATE FEDERAL DEPOSITORY INSTITUTIONS REGULATORY 
AGENCY DEFINED.— 
(1) IN GENERAL.—Section 202 of the Depository Institution 
12 use 3201. 
Management Interlocks Act (12 U.S.C. 3202) is amended— 
(A) by adding at the end thereof the following new para-
graph: 
"(6) the term 'appropriate Federal depository institutions 
regulatory agency' means, with respect to any depository 
institution or depository holding company, the agency referred 
to in section 209 in connection with such institution or com-
pany."; 
(B) by striking out "and" at the end of paragraph (4); and 
(C) by striking out the period at the end of paragraph (5) 
and inserting in lieu thereof "; and". 
(2) CONFORMING AMENDMENT.—Section 206(a) of the Deposi-
tory Institution Management Interlocks Act (12 U.S.C. 3205(a)) 
is amended by striking out "banking agency (as set forth in 
i-*w»efwiw" •
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PUBLIC LAW 100-650—NOV. 10, 1988 
102 STAT. 3821 
section 209)" and inserting in lieu thereof "depository institu-
tions regulatory agency". 
SEC. 6. EXTENSION OF GRANDFATHER CLAUSE. 
Subsections (a) and (b) of section 206 of the Depository Institution 
Management Interlocks Act (12 U.S.C. 3205) are each amended by 
striking "ten years" and inserting in lieu thereof "15 years". 
Approved November 10, 1988. 
LEGISLATIVE HISTORY—H.R. 4879: 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Oct. 6, considered and peissed House. 
Oct. 21, considered and passed Senate.