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H.R. 1661 (114th): Mutual Bank Capital Opportunity Act of 2015

The text of the bill below is as of Mar 26, 2015 (Introduced).



1st Session

H. R. 1661


March 26, 2015

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


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


Short title

This Act may be cited as the Mutual Bank Capital Opportunity Act of 2015.


Treatment of mutual capital certificates


In general

Section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o) is amended—


in subsection (b)(2)—


by redesignating subparagraphs (F) through (I) as subparagraphs (H) through (K), respectively; and


by inserting after subparagraph (E) the following new subparagraphs:


Mutual capital certificate

The term mutual capital certificate means a financial instrument issued by a mutual depository pursuant to subsection (c)(1)(C) that—


is subordinate to all claims against such mutual depository;


is unsecured by the assets of such mutual depository;


does not permit preemptive rights;


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;


is not eligible for use as collateral for any loan made by such mutual depository;


if declared by the board of directors of such mutual depository, entitles the holder to a payment of fixed, variable, or participating dividends; and


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).


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


in subsection (c)(1)—


in subparagraph (A), by inserting and subparagraph (C) after subparagraph (B)(ii); and


by inserting after subparagraph (B) the following new subparagraph:


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.




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.