Section 6. Sections 312 and 314(b) of the act are amended to read:
Section 312. Pledges For Deposits
(a) An institution may pledge assets as security for deposits of:
(i) public funds,
(ii) funds of a pension fund for employes of a political
subdivision of the Commonwealth,
(iii) funds for which a political subdivision of the
Commonwealth or an officer or employe thereof is the
custodian or trustee pursuant to statute,
(iv) funds held by the Secretary of Banking as receiver
or by the Insurance Commissioner as statutory liquidator,
(v) funds which are required to be secured by law or by
an order of a court, [and]
(vi) in the case of a bank and trust company, funds held
in a fiduciary capacity and deposited in its commercial
department pursuant to subsection 403 (c) of this act[.], and
(vii) funds held in a fiduciary capacity by a trust
company which is an affiliate of the institution.
(b) An institution may not pledge assets as security for deposits other than those covered by subsection (a) of this section.
Section 314. Borrowings
* * *
(b) The aggregate amount of outstanding liabilities of an institution for money borrowed exclusive of:
(i) liabilities to a Federal Reserve Bank on account of
money borrowed or rediscounts,
(ii) liabilities on account of the acquisition of
reserve balances at a Federal Reserve Bank or other reserve
agent from a member or non-member bank,
(iii) liabilities on account of agreements to repurchase
securities sold by the institution (commonly known as
"repurchase agreements") [and],
(iv) liabilities which do not constitute or result from
the borrowing of money under definitions prescribed by
regulation of the department, and
(v) liabilities to a Federal Home Loan Bank on account
of money borrowed or rediscounts shall not at any time exceed the aggregate of the amount of its capital and one-half of the amount of its surplus.