[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4420 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4420

   To amend the Federal Deposit Insurance Act to require the Federal 
 banking agencies to monitor compliance by depository institutions and 
depository institution holding companies with commitments made by such 
institutions in connection with a merger or acquisition, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1998

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

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Deposit Insurance Act to require the Federal 
 banking agencies to monitor compliance by depository institutions and 
depository institution holding companies with commitments made by such 
institutions in connection with a merger or acquisition, and for other 
                               purposes.

    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 ``Depository Institution Merger Pledge 
Enforcement Act''.

SEC. 2. ENFORCEMENT OF COMMITMENTS MADE IN CONNECTION WITH ACQUISITION 
              OR MERGER APPLICATIONS.

    Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new subsection:
    ``(t) Enforcement of Merger and Acquisition Pledges.--
            ``(1) In general.--Each appropriate Federal banking agency 
        shall establish and maintain procedures for monitoring, on an 
        ongoing basis, compliance by any insured depository 
        institution, bank holding company, savings and loan holding 
        company, foreign bank, or any affiliate of any such person with 
        any pledge or commitment made by any such person in connection 
        with the approval of any application by any such person under 
        subsection (c), section 44, sections 2, 3, or 4 of the National 
        Bank Consolidation and Merger Act, section 3 or 4 of the Bank 
        Holding Company Act of 1956, or section 10 of the Home Owners' 
        Loan Act, including any pledge or commitment relating to 
        community lending and investment.
            ``(2) Report of noncompliance.--Whenever any appropriate 
        Federal banking agency determines that any insured depository 
        institution, bank holding company, savings and loan holding 
        company, foreign bank, or any affiliate of any such person is 
        failing to maintain compliance with any pledge or commitment 
        referred to in paragraph (1) at any time during the effective 
        period of the pledge or agreement, the agency shall--
                    ``(A) notify the institution, company, bank, or 
                affiliate of such determination; and
                    ``(B) shall publish a notice of such determination 
                in the Federal Register.
            ``(3) Noncompliance taken into account in connection with 
        subsequent approvals.--If an appropriate Federal banking agency 
        makes a determination of noncompliance under paragraph (2) with 
        regard to any insured depository institution, bank holding 
        company, savings and loan holding company, foreign bank, or any 
        affiliate of any such person, the agency may take such 
        noncompliance into account in making decisions in the future 
        regarding the institution, company, bank, or affiliate.''.
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