Sec. 605. Holding company supervision of covered depository institutions
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/bill/117/s/4356/is/section-605A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 et seq. ) is amended— in section 2(c) ( 12 U.S.C. 1841(c) ), by striking paragraph
(2)and by inserting the following: The term bank does not include a covered depository institution subject to tailored holding company supervision under section 15. ; and by adding at the end the following: In this section: The term appropriate banking supervisor means the Comptroller of the Currency, a State bank supervisor, in the case of a State member bank, the Board, or in the case of an insured bank, the Federal Deposit Insurance Corporation, as applicable. The term controlling interest means a circumstance when a person, directly or indirectly, or acting through or in concert with 1 or more persons— owns, controls, or has the power to vote 25 percent or more of any class of voting securities of a covered depository institution; controls in any manner the election of a majority of the directors of the covered depository institution; or has the power to exercise a controlling influence over the management or policies of the covered depository institution. The term covered depository institution means a depository institution operating under subsection
(c)of section 5169 of the Revised Statutes ( 12 U.S.C. 27 ), or a substantially similar State law, other than a bank, as defined in section 2 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 ), or an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ), which is exclusively engaged in issuing payment stablecoins, providing safekeeping, trust or custodial services, or activities incidental to the foregoing. A person with a controlling interest in a covered depository institution shall— submit annual audited financial statements and other information as otherwise reasonably required by the appropriate banking supervisor; and provide a description of all affiliated or parent entities and their relationships with the institution, including annual updates. The appropriate banking supervisor may require a legal entity with a controlling interest in a covered depository institution to execute a tax allocation agreement with the institution that— expressly states that an agency relationship exists between the person and the institution with respect to tax assets generated by the institution, and that the assets are held in trust by the person for the benefit of the institution and will be promptly remitted to the institution; and may provide that the amount and timing of any payments or refunds to the institution by the person should be no less favorable than if the institution were a separate taxpayer. A person that is a commercial firm, as defined in section 602 of the Bank and Savings Association Holding Company and Depository Institution Regulatory Improvements Act of 2010 ( 12 U.S.C. 1815 note), may not obtain a controlling interest in a covered depository institution. If the appropriate banking supervisor finds that it is in the public interest and has reasonable cause to believe it is necessary to protect the customers of a covered depository institution, the supervisor may— conduct an examination of a legal entity with a controlling interest in a covered depository institution or otherwise require information from the person; and require a person with a controlling interest in a covered depository institution to divest or sever their relationship with the institution, if necessary to maintain safety and soundness. .
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Sec. 605
Holding company supervision of covered depository institutions
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