1. Short title This Act may be cited as the Mutual Bank Capital Opportunity Act of 2017 . 2. Treatment of mutual capital certificates (a) In general Section 38 of the Federal Deposit Insurance Act ( 12 U.S.C. 1831o ) is amended— (1) in subsection (b)(2)— (A) by redesignating subparagraphs (F) through (I) as subparagraphs (H) through (K), respectively; and (B) by inserting after subparagraph (E) the following new subparagraphs: (F) Mutual capital certificate The term mutual capital certificate means a financial instrument issued by a mutual depository pursuant to subsection (c)(1)(C) that— (i) is subordinate to all claims against such mutual depository; (ii) is unsecured by the assets of such mutual depository; (iii) does not permit preemptive rights; (iv) 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; (v) is not eligible for use as collateral for any loan made by such mutual depository; (vi) if declared by the board of directors of such mutual depository, entitles the holder to a payment of fixed, variable, or participating dividends; and (vii) 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). (G) 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.