PRINTER'S NO. 2954
No. 2216 Session of 1990
INTRODUCED BY F. TAYLOR, GALLEN, GEIST, GODSHALL, HALUSKA, J. L. WRIGHT, LESCOVITZ, VAN HORNE, SERAFINI, G. SNYDER, ALLEN, CHADWICK, OLASZ, BURD, DORR, MAIALE AND LUCYK, JANUARY 2, 1990
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, JANUARY 2, 1990
AN ACT 1 Amending the act of November 30, 1965 (P.L.847, No.356), 2 entitled "An act relating to and regulating the business of 3 banking and the exercise by corporations of fiduciary powers; 4 affecting persons engaged in the business of banking and 5 corporations exercising fiduciary powers and affiliates of 6 such persons; affecting the shareholders of such persons and 7 the directors, trustees, officers, attorneys and employes of 8 such persons and of the affiliates of such persons; affecting 9 national banks located in the Commonwealth; affecting persons 10 dealing with persons engaged in the business of banking, 11 corporations exercising fiduciary powers and national banks; 12 conferring powers and imposing duties on the Banking Board, 13 on certain departments and officers of the Commonwealth and 14 on courts, prothonotaries, clerks and recorders of deeds; 15 providing penalties; and repealing certain acts and parts of 16 acts," permitting the formation of mutual holding companies; 17 and providing for reciprocal interstate operations for 18 savings banks. 19 The General Assembly of the Commonwealth of Pennsylvania 20 hereby enacts as follows: 21 Section 1. The act of November 30, 1965 (P.L.847, No.356), 22 known as the Banking Code of 1965, is amended by adding a 23 section to read: 24 Section 115.1. Mutual Holding Companies 25 (a) In General--Notwithstanding any other provision of this
1 act, a savings bank organized under this act in mutual form may 2 reorganize so as to become a holding company by: 3 (i) chartering a subsidiary stock savings bank, the 4 stock of which is wholly owned by the mutual savings bank at 5 the time of the reorganization, and 6 (ii) transferring the substantial part of its assets and 7 liabilities, including all of its liabilities which are 8 insured by any deposit insurance corporation, to the 9 subsidiary stock savings bank. 10 (b) Directors' approval of plan required--A reorganization 11 is not authorized under this section unless a plan providing for 12 such reorganization has been approved by the affirmative vote of 13 two-thirds of the board of directors of the mutual savings bank. 14 (c) Notice to, and approval by, the department-- 15 (i) At least sixty days prior to taking any action 16 described in subsection (a), a mutual savings bank seeking to 17 establish a mutual holding company shall provide written 18 notice to the department. The notice shall contain such 19 relevant information as the department shall require by 20 regulation or by specific request in connection with any 21 particular notice. 22 (ii) Upon receipt of an application for approval of a 23 plan of reorganization authorized by this section, the 24 department shall conduct such investigation as it may deem 25 necessary to determine whether: 26 (A) the plan satisfies the requirements of this act, 27 and 28 (B) the plan adequately protects the interests of 29 depositors, borrowers and creditors. 30 (iii) Within sixty days after receipt of the 19900H2216B2954 - 2 -
1 application, the department shall approve or disapprove the 2 application on the basis of its investigation and shall 3 immediately give to the savings bank written notice of its 4 decision, and in the event of disapproval, a statement in 5 detail of such grounds therefor as are permitted by paragraph 6 (c)(4). 7 (iv) The department may disapprove any proposed holding 8 company formation only if: 9 (A) the plan providing for such reorganization fails 10 to comply, or as implemented would fail to comply, with 11 such regulations as the department may promulgate from 12 time to time, 13 (B) the plan unlawfully impairs any ownership rights 14 of depositors of the mutual savings bank, 15 (C) such disapproval is necessary to prevent unsafe 16 or unsound practices, 17 (D) the financial or management resources of the 18 resulting mutual holding company or the resulting savings 19 bank warrant disapproval, or 20 (E) the savings bank fails to furnish the 21 information required under subsection (c)(1). 22 (v) At the time of the transaction described in 23 subsection (a), a savings bank may, with the approval of the 24 department, retain capital assets at the holding company 25 level to the extent that such capital assets are not needed 26 by the subsidiary stock savings bank in order for the 27 subsidiary to satisfy applicable regulatory requirements. 28 (d) permitted activities--A mutual holding company may 29 engage only in the following activities: 30 (i) investing in the stock of one or more financial 19900H2216B2954 - 3 -
1 institution subsidiaries, 2 (ii) acquiring one or more additional financial 3 institution subsidiaries through the merger of such financial 4 institution subsidiaries into a subsidiary of the holding 5 company, 6 (iii) subject to subsection (e), merging with or 7 acquiring another holding company, one of whose subsidiaries 8 is a financial institution subsidiary, 9 (iv) investing in a corporation the capital stock of 10 which is available for purchase by a savings bank under 11 Federal law or under this act, 12 (v) engaging in such activities as are permitted, by 13 statute or regulation, to a holding company of a federally 14 chartered insured mutual institution under Federal law, and 15 (vi) engaging in such other activities as may be 16 permitted by the department. 17 (e) Limitations on certain activities of acquired holding 18 companies-- 19 (i) if a mutual holding company acquires or merges with 20 another holding company pursuant to subsection (d)(3), the 21 holding company acquired or the holding company resulting 22 from such merger or acquisition may invest in only those 23 assets and engage in only those activities which are 24 authorized under subsection (d), 25 (ii) not later than two years following a merger or 26 acquisition described in subsection (d)(3), the acquired 27 holding company or the holding company resulting from such 28 merger or acquisition shall: 29 (A) dispose of any asset which is an asset in which 30 a mutual holding company may not invest under subsection 19900H2216B2954 - 4 -
1 (d), and 2 (B) cease any activity which is an activity in which 3 a mutual holding company may not engage under subsection 4 (d). 5 (f) Regulation--The department shall have the authority to 6 issue rules, regulations and orders as may be necessary to 7 properly administer this section. No mutual holding company 8 shall be approved by the department until regulations have been 9 adopted pursuant to this section. 10 (g) Definitions--The following words and phrases when used 11 in this section shall have, unless the context clearly indicates 12 otherwise, the following meanings: 13 (i) "Mutual holding company," a corporation organized as 14 a holding company under this section. 15 (ii) "Financial institution subsidiary," a savings 16 association, a Federal savings and loan association or 17 savings bank which is located in Pennsylvania, a bank, a bank 18 and trust company, a trust company, a savings bank, a 19 regional thrift institution, or, after March 4, 1990, a 20 foreign thrift institution. 21 Section 2. Section 117 of the act, amended or added December 22 18, 1986 (P.L.1702, No.205) and May 18, 1988 (P.L.399, No.65), 23 is amended to read: 24 Section 117. Authorization of [Regional,] Reciprocal Interstate 25 Operations of Savings Banks 26 (a) Definitions for purpose of section--The following words 27 and phrases when used in this section shall have, unless the 28 context clearly indicates otherwise, the following meanings: 29 (i) "Acquire"--to acquire (as defined in section 30 112(a)(i)) five percent or more of the voting stock of an 19900H2216B2954 - 5 -
1 entity and shall also mean a merger or consolidation or a 2 purchase of assets and an assumption of liabilities, other 3 than in the regular course of business. 4 (ii) "Bank holding company"--the same meaning as that 5 term has under the Bank Holding Company Act of 1956, 12 6 U.S.C. § 1841(a). 7 (iii) "Branch"--an office which performs the functions 8 described in section 102(h). 9 (iv) "Control"--the power, directly or indirectly, to 10 direct the management or policies of an entity or to vote 11 twenty-five percent or more of any class of voting securities 12 of an entity. 13 (v) "Entity"--any corporation, partnership, association 14 or similar organization, including banks and thrift 15 institutions. 16 (vi) "Foreign association"--a savings and loan 17 association or building and loan association located in and 18 organized and operating under the laws of a state other than 19 Pennsylvania and a Federal association, as defined in 12 20 U.S.C. § 1462(d), that is located in a state other than 21 Pennsylvania. 22 (vii) "Foreign savings bank"--a savings bank located in 23 and organized and operating under the laws of a state other 24 than Pennsylvania. 25 (viii) "Foreign thrift institution"--a foreign savings 26 bank or a foreign association. 27 (ix) "Foreign thrift institution holding company"--an 28 entity which controls one or more foreign thrift institutions 29 and is located in a state other than Pennsylvania. 30 [(vi)] (x) "Pennsylvania savings bank"--a savings bank 19900H2216B2954 - 6 -
1 as defined in section 102(x). 2 [(vii)] (xi) "Pennsylvania savings bank holding 3 company"--an entity which controls one or more Pennsylvania 4 savings banks and is located in Pennsylvania. 5 [(viii)] (xii) "Region"--the States of Delaware, 6 Indiana, Kentucky, Maryland, New Jersey, Ohio, Virginia and 7 West Virginia, and the District of Columbia. 8 [(ix)] (xiii) "Regional association"--a savings and loan 9 association or building and loan association located in and 10 organized and operating under the laws of a state in the 11 region and a Federal association, as defined in 12 U.S.C. § 12 1462(d), that is located in the region. 13 [(x)] (xiv) "Regional savings bank"--a savings bank 14 located in and organized and operating under the laws of a 15 state in the region. 16 [(xi)] (xv) "Regional thrift institution"--a regional 17 savings bank or a regional association. 18 [(xii)] (xvi) "Regional thrift institution holding 19 company"--an entity which controls one or more regional 20 thrift institutions and is located in a state in the region. 21 [(xiii)] (xvii) "Savings and loan holding company"--as 22 defined in 12 U.S.C. § 1730a(a)(1)(D). 23 [(xiv)] (xviii) "State"--includes the District of 24 Columbia. 25 [(xv)] (xix) State in which an entity is "located"-- 26 (A) with regard to a thrift institution, the state 27 in which its deposits are largest; and 28 (B) with regard to a thrift institution holding 29 company, a savings bank holding company, a savings and 30 loan holding company or a bank holding company, the state 19900H2216B2954 - 7 -
1 in which the total deposits of its subsidiaries, 2 including commercial banks, are largest. 3 Provided, that an entity or its legal successor that is 4 located in Pennsylvania on the effective date of this 5 legislation shall be deemed thereafter to be located in 6 Pennsylvania regardless of the location of its deposits or 7 the deposits of its subsidiaries if said entity has not been 8 either acquired by an entity located outside of Pennsylvania 9 or a party to a merger or consolidation transaction in which 10 the holders of its voting shares immediately prior to the 11 transaction held less than fifty percent of the voting shares 12 of any class of stock in the entity surviving after, or 13 resulting from, the merger or consolidation. 14 (b) Acquisitions by [regional] foreign thrift institutions 15 and [regional] foreign thrift institution holding companies--A 16 [regional] foreign thrift institution or [regional] foreign 17 thrift institution holding company may acquire a Pennsylvania 18 savings bank or a Pennsylvania savings bank holding company if: 19 (i) the law of the state where the acquiring thrift 20 institution or thrift institution holding company is located 21 and the law of the state where any savings and loan holding 22 company or bank holding company which directly or indirectly 23 owns or controls the power to vote five percent or more of 24 its shares is located satisfies, in each case, the 25 reciprocity requirement of subsection (d); 26 (ii) the acquiring thrift institution or thrift 27 institution holding company and any savings and loan holding 28 company or bank holding company which directly or indirectly 29 owns or controls the power to vote five percent or more of 30 its shares is, in each case, located in a state in the region 19900H2216B2954 - 8 -
1 or in Pennsylvania, except that the requirement of location 2 in the region or in Pennsylvania will not be applicable to an 3 acquisition consummated after March 4, 1990; and 4 (iii) approval has been received from the department. 5 When considering a proposed acquisition by a [regional] 6 foreign thrift institution or a [regional] foreign thrift 7 institution holding company, the department shall give 8 specific attention to the effect of the acquisition on the 9 availability, in this Commonwealth, of those banking and 10 basic transaction account services set forth in subsections 11 (i) and (j). 12 (c) Branching by [regional] foreign savings banks-- 13 (i) A [regional] foreign savings bank may, with the 14 prior written approval of the department, maintain as a 15 branch any office acquired as part of an acquisition effected 16 under this section or section 114 of the Savings Association 17 Code of 1967. 18 (ii) A [regional] foreign savings bank may establish and 19 maintain branches in this Commonwealth if: 20 (A) the state in which it is located and the state 21 in which any savings and loan holding company or bank 22 holding company which directly or indirectly owns or has 23 the power to vote five percent or more of its shares is 24 located satisfies, in each case, the reciprocity 25 requirement of subsection (d); 26 (B) the savings bank and any savings and loan 27 holding company or bank holding company which directly or 28 indirectly owns or controls the power to vote five 29 percent or more of its shares is, in each case, located 30 in a state in the region or in Pennsylvania, except that 19900H2216B2954 - 9 -
1 the requirement of location in the region or in 2 Pennsylvania will not be applicable with respect to a 3 branch established after March 4, 1990; and 4 (C) the branch is approved by the department in the 5 same manner and subject to the same conditions as are 6 applicable to de novo branches of Pennsylvania savings 7 banks under sections 904 and 905. 8 (d) Reciprocity requirement-- 9 (i) The law of another state is reciprocal under this 10 section to the extent the department determines it to be so. 11 The department's determination under this subsection shall 12 include, but is not limited to: 13 (A) with regard to acquisitions, whether the law of 14 that other state authorizes Pennsylvania savings banks 15 and Pennsylvania savings bank holding companies to 16 acquire [regional] foreign thrift institutions and 17 [regional] foreign thrift institution holding companies 18 located in that state on terms and conditions reasonably 19 equivalent to those applicable to acquisitions by 20 [regional] foreign thrift institutions and [regional] 21 foreign thrift institution holding companies of 22 Pennsylvania savings banks or Pennsylvania savings bank 23 holding companies and whether the law of that other state 24 imposes conditions on the acquisition by Pennsylvania 25 savings banks or Pennsylvania savings bank holding 26 companies of [regional] foreign thrift institutions or 27 [regional] foreign thrift institution holding companies 28 located in that state that are substantially more onerous 29 than those imposed on the same acquisitions by thrift 30 institutions or thrift institution holding companies 19900H2216B2954 - 10 -
1 located in that state; and 2 (B) with regard to branching, whether the law of 3 that other state authorizes Pennsylvania savings banks to 4 establish or maintain branches in that state on terms and 5 conditions reasonably equivalent to those applicable to 6 the establishment or maintenance of branches in 7 Pennsylvania by savings banks located in that state, and 8 reasonably equivalent to those applicable to the 9 establishment and maintenance of branches in that state 10 by a savings bank located in that state. 11 (ii) The department need not determine that the law of 12 another state fails to meet the reciprocity requirement of 13 this subsection solely by reason of the fact that that law 14 does not allow Pennsylvania savings banks or Pennsylvania 15 savings bank holding companies to engage in a particular type 16 of branching or acquisition, or imposes conditions on such 17 branching or acquisition that are substantially more onerous 18 than those imposed on the same activities of savings banks or 19 savings bank holding companies located in that state. 20 However, in such circumstances, the department shall find 21 reciprocity only after imposing on the savings banks and 22 savings bank holding companies located in that state 23 conditions and limitations on branching and acquisitions in 24 Pennsylvania substantially similar to those imposed on 25 branching and acquisitions in that state by Pennsylvania 26 savings banks and savings bank holding companies. 27 (iii) The department may determine that the law of 28 another state is not reciprocal regarding a particular type 29 of branching or acquisition if the law of that other state 30 does not allow all Pennsylvania savings banks or, 19900H2216B2954 - 11 -
1 alternatively, all Pennsylvania savings bank holding 2 companies to engage on equal terms with each other in the 3 particular type of branching or acquisition. 4 (e) Authority of the department--In addition to the powers 5 granted elsewhere in this section and in other provisions of 6 Pennsylvania law, the department is authorized to impose any 7 conditions or requirements it deems appropriate, in light of the 8 purposes of this act, on thrift institutions and thrift 9 institution holding companies acquired or operating directly or 10 indirectly in Pennsylvania under this section. Such conditions 11 or requirements include, but are not limited to, provisions for 12 examinations, reports and the payment of fees. The department 13 may accept examinations and other reports of Federal and state 14 regulators and may enter into agreements with Federal and state 15 regulators for the exchange of information, including 16 examination reports. 17 (f) Change in circumstances--If a [regional] foreign thrift 18 institution or [regional] foreign thrift institution holding 19 company [located in another state] which has acquired a 20 Pennsylvania savings bank or Pennsylvania savings bank holding 21 company or has established a branch in Pennsylvania under this 22 section shall have a change of circumstances so that it no 23 longer satisfies the conditions of subsections (b) and (c) 24 (either by reason of a change in the place in which it is 25 located or by reason of acquisition by a savings and loan 26 holding company or a bank holding company located in a state 27 which does not satisfy the conditions of subsections (b) and (c) 28 of five percent or more of its voting shares, or the power to 29 vote those shares), said [regional] foreign thrift institution 30 or [regional] foreign thrift institution holding company shall 19900H2216B2954 - 12 -
1 divest each Pennsylvania savings bank, savings bank holding
2 company and branch it has acquired or established prior to
3 entering into a voluntary combination which causes such change
4 of circumstances or within one year (or such longer period of
5 not more than an additional year as the department may allow in
6 writing) after the occurrence of an event, other than a
7 voluntary combination, which causes the change in circumstances.
8 (g) Effect of invalidity--The purpose of this section is
9 solely to authorize reciprocal[, regional] interstate operations
10 by savings banks and associations, and this section shall not be
11 construed to authorize any acquisition or the establishment of
12 any branch by any entity located in another state except as
13 expressly provided in this section. In the event that any
14 limitation on the geographical location of entities granted
15 acquisition or branching powers by this section is held to be
16 invalid by a final order of a court which is not subject to
17 further review or appeal, the authorization of this section
18 shall terminate immediately. Any acquisition or branch
19 establishment consummated pursuant to this section prior to such
20 termination shall not be affected thereby.
21 (h) Acquisitions in other states by Pennsylvania savings
22 banks and Pennsylvania savings bank holding companies--A
23 Pennsylvania savings bank or Pennsylvania savings bank holding
24 company which proposes to acquire a thrift institution or thrift
25 institution holding company located in another state shall file
26 an application for approval by the department in such form and
27 upon payment of such fee as the department shall prescribe and
28 shall supplement such application with such additional
29 information as the department may reasonably request. The
30 department shall conduct such investigation as it deems
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1 necessary to determine whether to approve or disapprove the 2 application. The investigation shall include consideration of 3 the effects the proposed acquisition would have on the 4 availability, in this Commonwealth, of those banking services 5 and basic transaction account services set forth in subsections 6 (i) and (j). Within sixty days after receipt of the application 7 or within a longer period, not in excess of thirty days, after 8 receipt from the applicant of additional information requested 9 by the department, the department shall approve or disapprove 10 the proposed acquisition and give written notice of its decision 11 to the applicant. In approving an acquisition under this 12 section, the department may place conditions upon such approval 13 and incorporate such terms and agreements as are deemed 14 necessary to effect the purposes of this act. 15 (i) Availability of banking services--The department shall 16 have the authority to assure that interstate thrift acquisitions 17 authorized by this section will not diminish reasonable 18 availability of banking services to all segments of the public 19 and economy of this Commonwealth, with special emphasis on 20 economic development and the financing of enterprises to the end 21 that employment opportunities will be either increased or, where 22 there is the prospect of reduction, retained. Upon receipt of an 23 application for approval of an acquisition by an institution or 24 company located in another state under subsection (b) or 25 approval of an acquisition in another state by a Pennsylvania 26 savings bank or savings bank holding company under subsection 27 (h), the department shall review the credit practices and 28 policies of each Pennsylvania savings bank or savings bank 29 holding company which is involved in the proposed transaction. 30 Such review shall determine the overall performance of such 19900H2216B2954 - 14 -
1 company or institution in providing credit and financial 2 services to individuals and business enterprises in the 3 communities which it serves in the light of its role as a thrift 4 institution, its resources, its capital and its income, the 5 particular needs of such communities, competition and 6 alternative sources of credit. With respect to individuals, 7 there shall be a review of consumer loans, residential 8 mortgages, home improvement loans and student loans, 9 particularly to residents of low-income and moderate-income 10 neighborhoods. With respect to business enterprises, there shall 11 be a review of extensions of credit and investments intended to 12 promote economic development and creation, or retention where 13 there is the prospect of reduction, of employment opportunities, 14 including, without limitation, Small Business Administration and 15 other small business loans, industrial development loans, 16 financing of employe stock option plans and leveraged buyouts of 17 businesses by employes, financing of nonprofit community 18 development projects, loans and investments intended to maintain 19 existing businesses and to encourage economic expansion and job 20 opportunities, and loans and investments to promote 21 participation by businesses in this Commonwealth in 22 international trade and to increase exports. The review by the 23 department shall also include all other activities of the 24 institution or company deemed to be suitable to its particular 25 circumstances and the communities served. If the department 26 determines that the overall performance of the institution or 27 company has not been materially deficient and that it justifies 28 the conclusion that the institution or company does and will 29 provide suitable credit and financial services to its 30 communities, it may approve the application without imposing any 19900H2216B2954 - 15 -
1 terms or conditions but otherwise may impose such terms and 2 conditions as it deems appropriate to improve such overall 3 performance over a stated period of time. The department shall, 4 from time to time, review the continuing overall performance of 5 each such institution or company after an acquisition and, if it 6 finds that its overall performance has not continued to be 7 satisfactory, shall issue such order to the applicant as it 8 deems appropriate. 9 (j) Availability of basic transaction account services--The 10 department shall have the authority to assure that thrift 11 institution holding companies and thrift institutions that 12 become part of interstate banking organizations by reason of 13 acquisitions requiring approval under this section make basic 14 transaction account services available to the public. For this 15 purpose the department shall obtain, from all sources available 16 to it or through such studies as it may commission, adequate 17 information to determine: 18 (i) The needs of the public and, in particular, 19 individuals with low or moderate income, for a basic checking 20 or other transaction account. 21 (ii) The principal characteristics that such an account 22 should have, such as the number of checks, deposits and other 23 items for which a minimum charge may be made, the amount or 24 rate of such minimum charge and the forms of identification 25 that may be required for opening and using such an account. 26 (iii) The existing availability of basic accounts with 27 some or all of such principal characteristics currently 28 offered by depository institutions, including applicants 29 under this section, in separate communities of this 30 Commonwealth. 19900H2216B2954 - 16 -
1 An applicant shall, at the request of the department, supply 2 information to the department with respect to such accounts 3 offered by the applicant and by each institution which is a 4 subsidiary of the applicant. The department may approve an 5 application prior to the time it has acquired the information 6 required by this section, but the applicant and each institution 7 which is a subsidiary of the applicant shall be subject, both 8 before and after an approval of the acquisition under this 9 section, to requirements imposed by the department, from time to 10 time, to assure to the public, in the communities served by the 11 institution, the continuing availability of the basic 12 transaction account services which the department has determined 13 the public needs. 14 (k) Advisory Commission--For the purpose of advising the 15 department in the conduct of its functions under subsections (i) 16 and (j), the advisory commission established by section 116(k) 17 is empowered and directed to provide information, opinions and 18 recommendations as to guidelines the department may establish, 19 from time to time, for the purpose of determining the overall 20 performance of an institution or company under subsection (i) 21 and the availability of basic transaction account services under 22 subsection (j). All decisions and determinations made under this 23 section shall be made by the department. 24 Section 3. Section 504(b)(xiii) of the act, amended December 25 21, 1988 (P.L.1416, No.173), is amended to read: 26 Section 504. Investments 27 * * * 28 (b) Authority under this act or other statutes--Except as 29 otherwise provided in its articles, a savings bank may, in 30 addition to investments authorized by its articles, other 19900H2216B2954 - 17 -
1 provisions of this act or other statutes, make investments in: 2 * * * 3 (xiii) in the case of a savings bank which has elected 4 to exercise the conditional powers provided in section 513, 5 capital stock, securities or other obligations of any service 6 corporation, subject to the following limitations: 7 (A) the entire capital stock of the service 8 corporation shall be available for purchase by, or be 9 transferable to, only savings banks, savings and loan 10 associations organized under the laws of this 11 Commonwealth, Federal savings banks and savings and loan 12 associations having their home offices in this 13 Commonwealth, [or] regional thrift institutions, as that 14 term is defined in section 117, or, after March 4, 1990, 15 foreign thrift institutions, as that term is defined in 16 section 117, 17 (B) unless authorized by the department a savings 18 bank shall not have an aggregate outstanding investment 19 in the capital stock, securities or obligations of 20 service corporations the cost of which exceeds three 21 percent of the assets of the savings bank at the time of 22 acquisition of such stock, securities or obligations, 23 (C) a service corporation qualifying for investment 24 under this subsection may engage in the following 25 activities: 26 (1) originating, purchasing, selling and 27 servicing loans upon real estate and participating 28 interests therein, 29 (2) performing clerical, bookkeeping, 30 accounting, statistical or similar functions, 19900H2216B2954 - 18 -
1 primarily for financial institutions, 2 (3) acquisition and development of real estate, 3 principally for construction of housing or for resale 4 to others for such construction or for use as mobile 5 home sites, either separately or in conjunction with 6 others provided that such development shall be 7 completed within five years of the commencement of 8 development, unless that period is extended by the 9 department, 10 (4) acquiring interests in improved residential 11 real estate and mobile homes to be held for rental, 12 and 13 (5) any other activity authorized by the 14 department by regulation; and 15 * * * 16 Section 4. Section 1609(a)(iii)(B) of the act, amended 17 December 18, 1986 (P.L.1702, No.205), is amended to read: 18 Section 1609. Mergers, Consolidations and Conversions of 19 Savings Banks 20 (a) Authority to merge, consolidate or convert-- 21 * * * 22 (iii) upon compliance with the requirements of this 23 section and other applicable law, 24 * * * 25 (B) one or more savings banks may merge or 26 consolidate with a regional thrift institution, and, 27 after March 4, 1990, with a foreign thrift institution, 28 as those terms are defined in and subject to any 29 applicable limits of section 117. 30 * * * 19900H2216B2954 - 19 -
1 Section 5. Section 1808(a)(i) of the act is amended to read:
2 Section 1808. Involuntary Dissolution
3 (a) Issuance of certificate of dissolution by department--In
4 the event that:
5 (i) a certificate of authorization has not been issued to
6 a newly incorporated institution within [two years] one year
7 after the date of its incorporation or such longer time as
8 the department may allow for satisfaction of conditions
9 precedent to the issuance of a certificate,
10 * * *
11 Section 6. This act shall take effect immediately.
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