An Act to provide for notice of change in control of management of insured banks, and for other purposes
PL 88-593 (H.R.12267), enacted 09/12/1964

940 
PUBLIC LAW 88-593-SEPT. 12, 1964 
[78 STAT. 
Sale of lands, 
buildings, etc. 
Appropriation. 
SEC. 2. The Secretary is authorized to remove the quarantine func-
tions now being conducted at the United States Animal Quarantine 
Station, Clifton, New Jersey, to the new station provided for in this 
Act. 
SEC. 3. The Secretary is authorized to enter into an agreement with 
the city of Clifton, New Jersey, providing for the sale of the lands, 
buildings, facilities, and improvements as determined by the Secretary 
comprising and known as the United States Animal Quarantine Sta-
tion, Clifton, New Jersey. 
The agreement shall require that the city 
of Clifton pay to the Secretary the appraised value of such property 
as determined by the Secretary, and that upon the establishment of the 
new quarantine station provided for in this Act, the quarantine func-
tions performed at the existing station shall be removed to said new 
station and the Secretary shall then convey to the city of Clifton by 
quitclaim deed for public purposes all the right, title, and interest of 
the United States in and to the lands, buildings, facilities, and improve-
ments covered by the contract and comprising and known as the United 
States Animal Quarantine Station, Clifton, New Jersey: Provided^ 
That the Secretary shall not be required to vacate and surrender the 
existing station until the new station shall be equipped and ready for 
operation and the quarantine functions removed to the new station. 
SEC. 4. If the city of Clifton uses or conveys any part of the land 
covered by this Act for other than public purposes, all the right, title, 
and interest in and to the land conveyed under this Act shall revert to 
and become the property of the United States, which shall have the 
immediate right of entry thereon. The cost of any survey required 
in connection with conveyance of the Clifton property covere'd by this 
Act shall be at the expense of the city of Clifton. 
SEC. 5. In carrying out this Act, the Secretary is authorized to 
acquire land and interests therein, including leasehold interests, con-
struct or alter such buildings and other public improvements on any 
of such land or interests therein as may be necessary, cooperate with 
public and private organizations and individuals and remove any 
property from the existing quarantine station at Clifton, New Jersey. 
The Secretary is also authorized to acquire by long-term lease neces-
sary improved and unimproved real property and pay therefor on an 
annual basis. 
SEC. 6. Proceeds received from the sale of the animal quarantine 
station at Clifton, New Jersey, shall be available to the Secretary until 
expended for carrying out this Act. 
There are authorized to be 
appropriated such additional funds as may be necessary to carry out 
this Act. 
Approved September 12, 1964. 
Public Law 88-593 
September 12, 1964 
A N 
A C T 
[H.R. 12267] 
rpjj provide for notice of change in control of management of insured banks, and 
for other purposes. 
Banks. 
64 Stat. 876; 
74 Stat. 547. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Federal 
Deposit Insurance Act (12 U.S.C. 1811-1831), as amended, be 
amended by adding the following new subsection (j) at the end of 
section 7 thereof: 
78 STAT. ] 
PUBLIC LAW 88-593-SEPT. 12, 1964 
941 
•'(j) (1) Whenever a change occurs in the outstanding voting stock 
of any insured bank which will result in control or in a change in the 
control of the bank, the president or other chief executive officer of 
such bank shall promptly report such facts to the appropriate Federal 
banking agency upon obtaining knowledge of such change. As used in 
this subsection, the term 'control' means the power to directly or indi-
lectly direct or cause the direction of the management or policies of 
the bank. A change in ownership of voting stock which would result 
in direct or indirect ownership by a stockholder or an affiliated group 
of stockholders of less than 10 percent of the outstanding voting stock 
shall not be considered a change of control. If there is any doubt as to 
whether a change in the outstanding voting stock is sufficient to result 
in control thereof or to effect a change in the control thereof, such 
doubt shall be resolved in favor of reporting the facts to the appro-
priate Federal banking agency. 
"(2) Whenever an insured bank makes a loan or loans, secured, or 
to be secured, bv 25 per centum or more of the outstanding voting stock 
of an insured bank, the president or other chief executive officer of 
the lending bank shall promptly report such fact to the appropriate 
Federal banking agency of the bank whose stock secures the loan or 
loans upon obtaining knowledge of such loan or loans, except that no 
report need be made in those cases where the borrower has been the 
owner of record of the stock for a period of one year or more, or 
the stock is that of a newly organized bank prior to its opening. 
"(3) Tlie reports required by paragraphs (1) and (2) of this 
subsection shall contain the following information to the extent that it 
is known by the person making the report: (a) the number of shares 
involved, (b) the names of the sellers (or transferors), (c) the names 
of the purchasers (or transferees)j (d) the names of the beneficial 
owners if the shares are registered m another name, (e) the purchase 
price, (f) the total number of shares owned by the sellers (or trans-
ferors), the purchasers (or transferees) and the beneficial owners 
both immediately before and after the transaction, and in the case of a 
loan, (g) the name of the borrower, (h) the amount of the loan, and 
(i) the name of the bank issuing the stock securing the loan and the 
number of shares securing the loan. In addition to the foregoing, such 
reports shall contain such other information as may be available to 
inform the appropriate Federal banking agency of the effect of the 
transaction upon control of the bank whose stock is involved. 
" (4) Whenever such a change as described in paragraph (1) of this 
subsection occurs, each insured bank shall report promptly to the 
appropriate Federal banking agency any changes or replacement of its 
chief executive officer or of any director occurring in the next twelve-
month period, including in its report a statement of the past and 
current business and professional affiliations of the new chief executive 
officer or directors. 
"(5) The Comptroller of the Currency shall immediately furnish 
to the Board of Governors of the Federal Reserve System and to the 
Federal Deposit Insurance Corporation a copy of any such report 
required in this subsection and received by him, and the Board of 
Governors of the Federal Reserve System shall immediately furnish 
to the Federal Deposit Insurance Corporation a copy of any such 
report required in this subsection and received by it. 
" (6) As used in this section, the term 'appropriate Federal banking 
agency' shall mean (a) the Comptroller of the Currency in the case of 
a national banking association or a district bank, (b) the Board of 
Governors of the Federal Reserve System in the case of a State member 
insured bank (except a district bank), and (c) the Federal Deposit 
Insurance Corporation in the case of a State nonmember insured 
bank (except a district bank)." 
Approved September 12, 1964. 
««Control.»» 
Report. 
"Appropriate 
Federal banking 
agency."