Page:United States Statutes at Large Volume 124.djvu/1641

124 STAT. 1615 PUBLIC LAW 111–203—JULY 21, 2010 such terms are defined in section 22(h) of Federal Reserve Act), unless— ‘‘(A) the transaction is on market terms; and ‘‘(B) if the transaction represents more than 10 percent of the capital stock and surplus of the insured depository institution, the transaction has been approved in advance by a majority of the members of the board of directors of the insured depository institution who do not have an interest in the transaction. ‘‘(2) RULEMAKING.—The Board of Governors of the Federal Reserve System may issue such rules as may be necessary to define terms and to carry out the purposes this subsection. Before proposing or adopting a rule under this paragraph, the Board of Governors of the Federal Reserve System shall consult with the Comptroller of the Currency and the Corpora- tion as to the terms of the rule.’’. (b) AMENDMENTS TO THE FEDERAL RESERVE ACT.—Section 22(d) of the Federal Reserve Act (12 U.S.C. 375) is amended to read as follows: ‘‘(d) [Reserved]’’. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect on the transfer date. SEC. 616. REGULATIONS REGARDING CAPITAL LEVELS. (a) CAPITAL LEVELS OF BANK HOLDING COMPANIES.—Section 5(b) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(b)) is amended— (1) by inserting after ‘‘orders’’ the following: ‘‘, including regulations and orders relating to the capital requirements for bank holding companies,’’; and (2) by adding at the end the following: ‘‘In establishing capital regulations pursuant to this subsection, the Board shall seek to make such requirements countercyclical, so that the amount of capital required to be maintained by a company increases in times of economic expansion and decreases in times of economic contraction, consistent with the safety and soundness of the company.’’. (b) CAPITAL LEVELS OF SAVINGS AND LOAN HOLDING COMPA- NIES.—Section 10(g)(1) of the Home Owners’ Loan Act (12 U.S.C. 1467a(g)(1)) is amended— (1) by inserting after ‘‘orders’’ the following: ‘‘, including regulations and orders relating to capital requirements for savings and loan holding companies,’’; and (2) by inserting at the end the following: ‘‘In establishing capital regulations pursuant to this subsection, the appropriate Federal banking agency shall seek to make such requirements countercyclical so that the amount of capital required to be maintained by a company increases in times of economic expan- sion and decreases in times of economic contraction, consistent with the safety and soundness of the company.’’. (c) CAPITAL LEVELS OF INSURED DEPOSITORY INSTITUTIONS.— Section 908(a)(1) of the International Lending Supervision Act of 1983 (12 U.S.C. 3907(a)(1)) is amended by adding at the end the following: ‘‘Each appropriate Federal banking agency shall seek to make the capital standards required under this section or other provisions of Federal law for insured depository institutions counter- cyclical so that the amount of capital required to be maintained 12 USC 375 note. Consultation.