note. PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 409 "(i) ACQUISITION OF SAVINGS ASSOCIATIONS. — "(1) IN GENERAL.—The Board may approve an application by any bank holding company under subsection (c)(8) to acquire any savings association in accordance with the requirements and limitations of this section. "(2) PROHIBITION ON TANDEM RESTRICTIONS. —In approving an application by a bank holding company to acquire a savings association, the Board shall not impose any restriction on trans- actions between the savings association and its holding com- pany affiliates, except as required under sections 23A and 23B of the Federal Reserve Act or any other applicable law.", (b) MODIFICATION OF PRIOR APPROVALS. — If the Board of Governors 12 USC 1843 of the Federal Reserve System, in approving an application by a bank holding company to acquire a savings association, imposed any restriction that would have been prohibited under section 4(i)(2) of the Bank Holding Company Act of 1956 (as added by subsection (a) of this section) if that section had been in effect when the applica- tion was approved, the Board shall modify that approval in a manner consistent with that section. SEC. 602. TECHNICAL AMENDMENTS TO THE BANK HOLDING COMPANY ACT. (a) DEFINITIONS.— Section 2(j) of the Bank Holding Company Act of 1956 (12 U.S.C. 18410)) is amended to read as follows: "(j) DEFINITION OF SAVINGS ASSOCIATIONS AND RELATED TERM. — The term 'savings association' or 'insured institution' means— "(1) any Federal savings association or Federal savings bank; "(2) any building and loan association, savings and loan association, homestead association, or cooperative bank if such association or cooperative bank is a member of the Savings Association Insurance Fund; and "(3) any savings bank or cooperative bank which is deemed by the Director of the Office of Thrift Supervision to be a savings association under section 10(1) of the Home Owners' Loan Act.". (b) INSURANCE REQUIRED. —Section 3(e) of the Bank Holding Com- pany Act of 1956 (12 U.S.C. 1842(e)) is amended by striking "an insured bank as defined in section 3(h)" and inserting "an insured depository institution as defined in section 3". SEC. 603. PASSIVE INVESTMENTS BY COMPANIES CONTROLLING CERTAIN NONBANK BANKS. (a) IN GENERAL.— Section 4(f)(2)(A)(ii) of the Bank Holding Com- pany Act of 1956 (12 U.S.C. 1843(f)(2)(A)(ii)) is amended to read as follows: "(ii) acquires control of more than 5 percent of the shares or assets of an additional bank or a savings association other than— "(I) shares held as a bona fide fiduciary (whether with or without the sole discretion to vote such shares); "(II) shares held by any person as a bona fide fiduciary solely for the benefit of employees of either the company described in paragraph (1) or any subsidiary of that com- pany and the beneficiaries of those employees; "(III) shares held temporarily pursuant to an underwrit- ing commitment in the normal course of an underwriting business;
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