[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1661 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1661

  To amend the Federal Deposit Insurance Act to allow mutual capital 
 certificates to satisfy capital requirements for mutual depositories.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2015

  Mr. Rothfus (for himself, Mr. Stivers, and Mr. Barr) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Deposit Insurance Act to allow mutual capital 
 certificates to satisfy capital requirements for mutual depositories.

    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 ``Mutual Bank Capital Opportunity Act 
of 2015''.

SEC. 2. TREATMENT OF MUTUAL CAPITAL CERTIFICATES.

    (a) In General.--Section 38 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831o) is amended--
            (1) in subsection (b)(2)--
                    (A) by redesignating subparagraphs (F) through (I) 
                as subparagraphs (H) through (K), respectively; and
                    (B) by inserting after subparagraph (E) the 
                following new subparagraphs:
                    ``(F) Mutual capital certificate.--The term `mutual 
                capital certificate' means a financial instrument 
                issued by a mutual depository pursuant to subsection 
                (c)(1)(C) that--
                            ``(i) is subordinate to all claims against 
                        such mutual depository;
                            ``(ii) is unsecured by the assets of such 
                        mutual depository;
                            ``(iii) does not permit preemptive rights;
                            ``(iv) does not provide voting or member 
                        rights to the holder unless the board of 
                        directors of such mutual depository proposes to 
                        change the specific terms of any class of such 
                        certificates in a manner adverse to the 
                        interests of the holder;
                            ``(v) is not eligible for use as collateral 
                        for any loan made by such mutual depository;
                            ``(vi) if declared by the board of 
                        directors of such mutual depository, entitles 
                        the holder to a payment of fixed, variable, or 
                        participating dividends; and
                            ``(vii) is not redeemable until the date 
                        that is 5 years after the date of issuance, 
                        except in the case of merger, conversion, or 
                        consolidation of such mutual depository, or 
                        reorganization of such mutual depository into a 
                        mutual holding company or a Federal mutual bank 
                        holding company (as such term is defined in 
                        section 5133A(a) of the Revised Statutes of the 
                        United States).
                    ``(G) Mutual depository.--The term `mutual 
                depository' means an insured depository institution 
                operating in a non-stock form, including a Federal non-
                stock depository and any form of non-stock depository 
                provided for under State law, the deposits of which are 
                insured by an instrumentality of the Federal 
                Government.''; and
            (2) in subsection (c)(1)--
                    (A) in subparagraph (A), by inserting ``and 
                subparagraph (C)'' after ``subparagraph (B)(ii)''; and
                    (B) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) Mutual capital certificates.--A mutual 
                depository is authorized to issue mutual capital 
                certificates that shall qualify as common equity Tier 1 
                capital (as such term is defined by the appropriate 
                Federal banking agency) for purposes of any capital 
                requirements mandated by any Federal law or 
                regulation.''.
    (b) Regulations.--Not later than 180 days after the date of 
enactment of this section, the appropriate Federal banking agencies (as 
defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813)) shall jointly issue regulations to implement this section.
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