[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4348 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4348

 To amend section 5137 of the Revised Statutes of the United States to 
allow national banks to continue to hold passive investments in certain 
 subsurface rights acquired in the course of the banking business and 
         carried on the books of the bank for a nominal amount.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 1998

 Mr. Sessions introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend section 5137 of the Revised Statutes of the United States to 
allow national banks to continue to hold passive investments in certain 
 subsurface rights acquired in the course of the banking business and 
         carried on the books of the bank for a nominal amount.

    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 cited as the ``Bank Investment in Subsurface Rights 
Act''.

SEC. 2. AMENDMENT TO SECTION 5137 OF THE REVISED STATUTES OF THE UNITED 
              STATES.

    (a) In General.--Section 5137 of the Revised Statutes of the United 
States (12 U.S.C. 29) is amended by adding at the end the following new 
subsection:
    ``(d) Passive Investments in Subsurface Rights and Interests in 
Rights.--
            ``(1) In general.--Notwithstanding subsections (a), (b), 
        and (c), a national bank may hold subsurface rights of real 
        estate, and interests in such rights, if--
                    ``(A) the national bank acquires the property 
                pursuant to the paragraphs designated the `First', 
                `Second', and `Third' of subsection (a);
                    ``(B) the national bank--
                            ``(i) holds the rights or interest 
                        passively; and
                            ``(ii) is not engaged in production, 
                        extraction, exploration, or other active use of 
                        the rights or interests;
                    ``(C) the national bank does not make any new 
                investments relating to the rights or interests without 
                the approval of the Comptroller of the Currency;
                    ``(D) the national bank--
                            ``(i) values the subsurface rights and 
                        interests in such rights on the books of the 
                        bank for no more than a nominal amount; and
                            ``(ii) separately discloses the aggregate 
                        amount of earnings from the rights and 
                        interests in the annual financial statements of 
                        the bank; and
                    ``(E) the Comptroller of the Currency determines 
                that the possession of such rights and interests is not 
                inconsistent with the safety and soundness of the 
                national bank.
            ``(2) Authority of comptroller of the currency to require 
        divestiture.--The Comptroller of the Currency may order, at any 
        time, a national bank which holds subsurface rights of real 
        estate, and interests in such rights, pursuant to paragraph (1) 
        to divest such rights and interests if the Comptroller 
        determines that continued ownership of such rights or interests 
        is detrimental to the national bank.''.
    (b) Technical Amendments to Redesignate Undesignated Paragraphs as 
Subsections.--Section 5137 of the Revised Statutes of the United States 
(12 U.S.C. 29) is amended--
            (1) in the 1st undesignated paragraph by striking ``5137. A 
        national banking association may purchase'' and inserting the 
        following:

``SEC. 5137. POWER TO HOLD REAL ESTATE.

    ``(a) In General.--A national banking association may purchase'';
            (2) in the 3d undesignated paragraph, by striking ``For 
        real estate in the possession of a national banking association 
        upon application'' and inserting the following:
    ``(b) Divestment Period Applicable For Ineligible Real Estate Held 
Before Becoming a National Bank.--For real estate in the possession of 
a national banking association upon application''; and
            (3) in the 4th undesignated paragraph, by striking 
        ``Notwithstanding the five-year holding limitation of this 
        section'' and inserting the following:
    ``(c) Extension of Holding Period Under Certain Circumstances.--
Notwithstanding the 5-year holding period limitation of this section''.
                                 <all>