102 STAT. 3820

PUBLIC LAW 100-650—NOV. 10, 1988

12 USC 3201.

respect to the service of a director of such company who is also a
director of any nonaffiliated depository institution or depository
holding company (including a savings and loan holding com-
pany) if—

"(i) notice of the proposed dual service is given by such
diversified savings and loan holding company to—

"(I) the appropriate Federal depository institutions
regulatory agency for such company; and

"(II) the appropriate Federal depository institutions
regulatory agency for the nonaffiliated depository
institution or depository holding company of which
such person is also a director,

not less than 60 days before such dual service is proposed to
begin; and

"(ii) the proposed dual service is not disapproved by any
such appropriate Federal depository institutions regulatory
agency before the end of such 60-day period.
"(B) Any appropriate Federal depository institutions regu-
latory agency may disapprove, under subparagraph (A)(ii), a
notice of proposed dual service by any individual if such agency
finds that—

"(i) the dual service cannot be structured or limited so as
to preclude the dual service's resulting in a monopoly or
substantial lessening of competition in financial services in
any part of the United States;

"(ii) the dual service would lead to substantial conflicts of
interest or unsafe or unsound practices; or

"(Hi) the diversified savings and loan holding company
has neglected, failed, or refused to furnish all the informa-
tion required by such agency.

"(C) Any appropriate Federal depository institutions regu-
latory agency may, at any time after the end of the 60-day
period referred to in subparagraph (A), require that any dual
service by any individual which was not disapproved by such
agency during such period be terminated if a change in cir-
cumstances occurs with respect to any depository institution or
depository holding company of which such individual is a direc-
tor that would have provided a basis for disapproval of the dual
service during such period.".

(b) APPROPRIATE FEDERAL DEPOSITORY INSTITUTIONS REGULATORY
AGENCY DEFINED.—

(1) IN GENERAL.—Section 202 of the Depository Institution
Management Interlocks Act (12 U.S.C. 3202) is amended—

(A) by adding at the end thereof the following new para-
graph:

"(6) the term 'appropriate Federal depository institutions
regulatory agency' means, with respect to any depository
institution or depository holding company, the agency referred
to in section 209 in connection with such institution or com-
pany.";

(B) by striking out "and" at the end of paragraph (4); and

(C) by striking put the period at the end of paragraph (5)
and inserting in lieu thereof "; and".

(2) CONFORMING AMENDMENT.—Section 206(a) of the Deposi-
tory Institution Management Interlocks Act (12 U.S.C. 3205(a))
is amended by striking out "banking agency (as set forth in