Sec. 4. Mutual investment certificates authorized
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Section 38(c)(1) of the Federal Deposit Insurance Act (12 U.S.C. § 1831o(c)(1)) is hereby amended by deleting subparagraph (B)(ii) in paragraph
(A)and inserting subparagraph (B)(ii) and paragraph
(C)and by adding at the end of subparagraph (B)(ii) the following: Notwithstanding any other provision of law, a mutual depository, as defined in ( 12 U.S.C. 5133A(h)(3) ), is authorized to issue Mutual Investment Certificates, which shall be included as Tier 1 capital for purposes of any capital standards issued by an appropriate Federal banking agency, provided that such certificates must be— nonvoting, except that the issuing mutual depository institution may permit voting in the event that— the mutual depository institution fails to pay dividends for a minimum of three consecutive dividend periods, and then the holders of the class or classes of Mutual Investment Certificates granted such voting rights, and voting as a single class, with one vote for each outstanding certificate, may elect by a majority vote a maximum of one-third of the institution's board of directors, the directors so elected to serve until the next annual meeting of the institution succeeding the payment of all current and past dividends; any merger, consolidation, or reorganization (except in a supervisory case) is sought to be authorized, where the issuing institution is not the survivor, provided that the regulatory capital of the resulting institution available for payment of any class of Mutual Investment Certificates on liquidation is less than the regulatory capital available for such class prior to the merger, consolidation, or reorganization; any action is sought to be authorized which would create any class of Mutual Investment Certificates having a preference or priority over an outstanding class or classes of Mutual Investment Certificates; any action is sought to be authorized which would adversely change the specific terms of any class of Mutual Investment Certificates; action is sought to be authorized which would increase the number of a class of Mutual Investment Certificates, or the number of a class of Mutual Investment Certificates ranking prior to or on parity with another class of Mutual Investment Certificates; or action is sought which would authorize the issuance of an additional class or classes of Mutual Investment Certificates without the institution having met specific financial standards; redeemable at the sole discretion of the Board of Directors of the mutual depository; and provide that any dividends paid must be non-cumulative. Notwithstanding any other provision of law, nonwithdrawable accounts, pledged accounts, mutual capital certificates, or similar instruments, authorized as of the date of the enactment of the Mutual Community Bank Equity Act, shall be included as Tier 1 capital for purposes of any capital standards issued by an appropriate Federal banking agency. The appropriate Federal banking agencies are hereby authorized to prescribe appropriate regulations to implement these provisions. .
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U.S. Code
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- 12 USC 5133A(h)(3)
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