Section 5. Section 311(d) of the act, amended December 21, 1988 (P.L.1416, No.173), is amended to read:
Section 311. Transactions With Respect to Shares of Corporate
Stock and Capital Securities
* * *
(d) Ownership--An institution may acquire and hold:
(i) shares of stock of a Federal Reserve Bank, without
limitation of amount;
(ii) shares of stock of:
(A) the Federal National Mortgage Association, the
Government National Mortgage Association, the Federal
Home Loan Mortgage Corporation, the Student Loan
Marketing Association, a corporation authorized to be
created pursuant to Title IX of the Housing and Urban
Development Act of 1968 or any other such corporations or
agencies as may from time to time be approved by the
department,
(B) a bank, a bank and trust company or a trust
company subject to this act, a national bank located in
Pennsylvania or a Pennsylvania bank holding company--to
the extent of ten percent of the sum of the par value of
the issued and outstanding shares of any such issuer,
and, for purposes of this limitation, the shares owned by
all the affiliates of a Pennsylvania bank holding company
shall be aggregated to determine whether the ten percent
limitation is reached,
(B.1) a subsidiary corporation engaged in the
functions or activities that an institution is authorized
to carry on, if the shares are acquired with the prior
written approval of, and in accordance with the terms and
conditions of transfer prescribed by, the department, or
(C) a corporation organized under the laws of the
United States or of any state or any foreign country and
principally engaged, directly or indirectly, in
international or foreign banking or financial operations
or in banking or financial operations in a dependency, or
insular possession of the United States or in the
Commonwealth of Puerto Rico, if the shares are acquired
with the prior written approval of, and in accordance
with the terms and conditions prescribed by, the
department in an amount the cost of which to the
institution for the shares of any such association or
corporation so acquired or held is not in excess of ten
percent of the aggregate of the capital, surplus and
capital securities of the institution and in the case of
shares covered by clause (B) of this subsection (d)(ii),
in an amount the cost of which to the institution for the
shares of all such issuers so acquired or held is not in
excess of the lesser of ten percent of the total assets
of the institution or one hundred percent of the
aggregate of the capital, surplus and capital securities
of the institution;
(iii) shares of stock of small business investment
companies organized pursuant to the Small Business Investment
Act, in an amount the cost of which is not in excess of one
percent of the aggregate of the capital, surplus and capital
securities of the institution;
(iv) in the case of a bank and trust company, shares of
stock of a corporation organized under the laws of the
Commonwealth for the purpose of conducting a title insurance
business to which the institution has transferred the assets
of its title insurance business, in an amount:
(A) the cost of which is not in excess of the lesser
of (1) ten percent of the aggregate of the capital,
surplus and capital securities of the institution or (2)
double the minimum amount of capital and paid-in surplus
required for the incorporation of such corporation, or
(B) with the prior approval of the department, the
cost of which is not in excess of fifteen percent of the
aggregate of the capital, surplus and capital securities
of the institution;
(v) shares of stock of business development credit
corporations to the extent provided by the Business
Development Credit Corporation Law;
(vi) shares of stock of a corporation organized to
promote the public welfare and community development, expand
the economy or provide for social reform, subject to
regulation by the department;
(vii) shares of stock of a clearing corporation as
defined in Article 8 of the Uniform Commercial Code;
(viii) shares of stock of a stock savings bank located
in Pennsylvania;
(ix) shares of stock of a corporation engaged
exclusively in activities not prohibited by this act, which
shares have been held continuously since November 30, 1965;
[and]
(x) shares of stock of a savings association, a Federal
savings and loan association or a Federal savings bank,
located in Pennsylvania, provided that an institution may
hold no more than ten percent of the outstanding shares of
the common stock of such savings association, Federal savings
and loan association or Federal savings bank[.]; and
(xi) shares of stock of a Federal Home Loan Bank,
without limitation of amount.
* * *