Section 1 Dividend waiver authority for mutual holding companies
Section 10(o)(11) of the Home Owners’ Loan Act (12 U.S.C. 1467a(o)(11)) is amended—
in subparagraph (D)—
in clause (i), by adding “and” at the end;
in clause (ii), by striking “; and” and inserting a period; and
by striking clause (iii);
by amending subparagraph (E) to read as follows:
“(E) Valuation—The appropriate Federal banking agency may not consider waived dividends in determining an appropriate exchange ratio in the event of a full conversion to stock form.”
by adding at the end the following new subparagraph:
“(F) Rule of construction—Nothing in this paragraph shall be construed to authorize the appropriate Federal banking agency to require a vote of members of a mutual holding company to approve one or more dividend waivers or to place any additional restrictions on dividend waivers by mutual holding companies that are inconsistent with or exceed the requirements set forth in this paragraph.”