IB 

Union Calendar No. 113

108TH CONGRESS 

1ST SESSION H. R. 1375

[Report No. 108–152, Parts I and II] 

To provide regulatory relief and improve productivity for insured depository 

institutions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 20, 2003

Mrs. CAPITO (for herself, Mr. OXLEY, Mr. BACHUS, and Mr. ROSS) introduced 

the following bill; which was referred to the Committee on Financial Services 

JUNE 12, 2003

Reported with an amendment and referred to the Committee on the Judiciary 

for a period ending not later than July 14, 2003, for consideration of 

such provisions of the bill and amendment as fall within the jurisdiction 

of that committee pursuant to clause 1(k), rule X 

[Strike out all after the enacting clause and insert the part printed in italic] 

JULY 14, 2003

Additional sponsors: Mr. ROYCE, Mr. NEY, Mr. LATOURETTE, Ms. HART, Mr. 

TIBERI, Mr. SANDLIN, Mr. HENSARLING, and Mr. CANTOR

JULY 14, 2003

Reported from the Committee on the Judiciary with an amendment, committed to the Committee of the Whole House on the State of the Union, 

and ordered to be printed 
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[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 20, 2003] 

A BILL

To provide regulatory relief and improve productivity for 

insured depository institutions, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Fi5 nancial Services Regulatory Relief Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—NATIONAL BANK PROVISIONS 

Sec. 101. National bank directors. 

Sec. 102. Voting in shareholder elections. 

Sec. 103. Simplifying dividend calculations for national banks. 

Sec. 104. Repeal of obsolete limitation on removal authority of the Comptroller 

of the Currency. 

Sec. 105. Repeal of intrastate branch capital requirements. 

Sec. 106. Clarification of waiver of publication requirements for bank merger notices. 

Sec. 107. Capital equivalency deposits for Federal branches and agencies of foreign banks. 

Sec. 108. Equal treatment for Federal agencies of foreign banks. 

Sec. 109. Maintenance of a Federal branch and a Federal agency in the same 

State. 

Sec. 110. Business organization flexibility for national banks. 

Sec. 111. Clarification of the main place of business of a national bank. 

TITLE II—SAVINGS ASSOCIATION PROVISIONS 

Sec. 201. Parity for savings associations under the Securities Exchange Act of 

1934 and the Investment Advisers Act of 1940. 

Sec. 202. Investments by Federal savings associations authorized to promote the 

public welfare. 
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Sec. 203. Mergers and consolidations of Federal savings associations with nondepository institution affiliates. 

Sec. 204. Repeal of statutory dividend notice requirement for savings association 

subsidiaries of savings and loan holding companies. 

Sec. 205. Modernizing statutory authority for trust ownership of savings associations. 

Sec. 206. Repeal of overlapping rules governing purchased mortgage servicing 

rights. 

Sec. 207. Restatement of authority for Federal savings associations to invest in 

small business investment companies. 

Sec. 208. Removal of limitation on investments in auto loans. 

Sec. 209. Selling and offering of deposit products. 

Sec. 210. Funeral- and cemetery-related fiduciary services. 

Sec. 211. Repeal of qualified thrift lender requirement with respect to out-of-state 

branches. 

Sec. 212. Small business and other commercial loans. 

Sec. 213. Clarifying citizenship of Federal savings associations for Federal court 

jurisdiction. 

Sec. 214. Clarification of applicability of certain procedural doctrines. 

TITLE III—CREDIT UNION PROVISIONS 

Sec. 301. Privately insured credit unions authorized to become members of a Federal home loan bank. 

Sec. 302. Leases of land on Federal facilities for credit unions. 

Sec. 303. Investments in securities by Federal credit unions. 

Sec. 304. Increase in general 12-year limitation of term of Federal credit union 

loans to 15 years. 

Sec. 305. Increase in 1 percent investment limit in credit union service organizations. 

Sec. 306. Member business loan exclusion for loans to nonprofit religious organizations. 

Sec. 307. Check cashing and money transfer services offered within the field of 

membership. 

Sec. 308. Voluntary mergers involving multiple common-bond credit unions. 

Sec. 309. Conversions involving common-bond credit unions. 

Sec. 310. Credit union governance. 

Sec. 311. Providing the National Credit Union Administration with greater flexibility in responding to market conditions. 

Sec. 312. Exemption from pre-merger notification requirement of the Clayton Act. 

Sec. 313. Treatment of credit unions as depository institutions under securities 

laws. 

TITLE IV—DEPOSITORY INSTITUTION PROVISIONS 

Sec. 401. Easing restrictions on interstate branching and mergers. 

Sec. 402. Statute of limitations for judicial review of appointment of a receiver 

for depository institutions. 

Sec. 403. Reporting requirements relating to insider lending. 

Sec. 404. Amendment to provide an inflation adjustment for the small depository 

institution exception under the Depository Institution Management Interlocks Act. 

Sec. 405. Enhancing the safety and soundness of insured depository institutions. 

Sec. 406. Investments by insured savings associations in bank service companies 

authorized. 

Sec. 407. Cross guarantee authority. 
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Sec. 408. Golden parachute authority and nonbank holding companies. 

Sec. 409. Amendments relating to change in bank control. 

TITLE V—DEPOSITORY INSTITUTION AFFILIATES PROVISIONS 

Sec. 501. Clarification of cross marketing provision. 

Sec. 502. Amendment to provide the Federal Reserve Board with discretion concerning the imputation of control of shares of a company by 

trustees. 

Sec. 503. Eliminating geographic limits on thrift service companies. 

Sec. 504. Clarification of scope of applicable rate provision. 

TITLE VI—BANKING AGENCY PROVISIONS 

Sec. 601. Waiver of examination schedule in order to allocate examiner resources. 

Sec. 602. Interagency data sharing. 

Sec. 603. Penalty for unauthorized participation by convicted individual. 

Sec. 604. Amendment permitting the destruction of old records of a depository institution by the FDIC after the appointment of the FDIC as receiver. 

Sec. 605. Modernization of recordkeeping requirement. 

Sec. 606. Clarification of extent of suspension, removal, and prohibition authority 

of Federal banking agencies in cases of certain crimes by institution-affiliated parties. 

Sec. 607. Streamlining depository institution merger application requirements. 

Sec. 608. Inclusion of Director of the Office of Thrift Supervision in list of banking agencies regarding insurance customer protection regulations. 

Sec. 609. Shortening of post-approval antitrust review period with the agreement 

of the Attorney General. 

Sec. 610. Protection of confidential information received by Federal banking regulators from foreign banking supervisors. 

Sec. 611. Prohibition on the participation in the affairs of bank holding company 

or Edge Act or agreement corporations by convicted individual. 

Sec. 612. Clarification that notice after separation from service may be made by 

an order. 

Sec. 613. Examiners of financial institutions. 

Sec. 614. Parity in standards for institution-affiliated parties. 

Sec. 615. Enforcement against misrepresentations regarding FDIC deposit insurance coverage. 

Sec. 616. Compensation of Federal home loan bank directors. 

Sec. 617. Extension of terms of Federal home loan bank directors. 

Sec. 618. Biennial reports on the status of agency employment of minorities and 

women. 

Sec. 619. Coordination of State examination authority. 

TITLE VII—CLERICAL AND TECHNICAL AMENDMENTS 

Sec. 701. Clerical amendments to the Home Owners’ Loan Act. 

Sec. 702. Technical corrections to the Federal Credit Union Act. 

Sec. 703. Other technical corrections. 

Sec. 704. Repeal of obsolete provisions of the Bank Holding Company Act of 

1956.
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1 TITLE I—NATIONAL BANK 

2 PROVISIONS 

3 SEC. 101. NATIONAL BANK DIRECTORS. 

4 Section 5146 of the Revised Statutes of the United 

5 States (12 U.S.C. 72) is amended—

6 (1) by striking ‘‘SEC. 5146. Every director must 

7 during’’ and inserting the following: 

8 ‘‘SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS. 

9 ‘‘(a) RESIDENCY REQUIREMENTS.—Every director of 

10 a national bank shall, during’’; 

11 (2) by striking ‘‘total number of directors. Every 

12 director must own in his or her own right’’ and in13 serting ‘‘total number of directors. 

14 ‘‘(b) INVESTMENT REQUIREMENT.—

15 ‘‘(1) IN GENERAL.—Every director of a national 

16 bank shall own, in his or her own right,’’; and 

17 (3) by adding at the end the following new para18 graph: 

19 ‘‘(2) EXCEPTION FOR SUBORDINATED DEBT IN

20 CERTAIN CASES.—In lieu of the requirements of para21 graph (1) relating to the ownership of capital stock 

22 in the national bank, the Comptroller of the Currency 

23 may, by regulation or order, permit an individual to 

24 serve as a director of a national bank that has elected, 

25 or notifies the Comptroller of the bank’s intention to 
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1 elect, to operate as a S corporation pursuant to sec2 tion 1362(a) of the Internal Revenue Code of 1986, if 

3 that individual holds debt of at least $1,000 issued by 

4 the national bank that is subordinated to the interests 

5 of depositors and other general creditors of the na6 tional bank.’’. 

7 SEC. 102. VOTING IN SHAREHOLDER ELECTIONS. 

8 Section 5144 of the Revised Statutes of the United 

9 States (12 U.S.C. 61) is amended—

10 (1) by striking ‘‘or to cumulate’’ and inserting 

11 ‘‘or, if so provided by the articles of association of the 

12 national bank, to cumulate’’; 

13 (2) by striking the comma after ‘‘his shares shall 

14 equal’’; and 

15 (3) by adding at the end the following new sen16 tence: ‘‘The Comptroller of the Currency may pre17 scribe such regulations to carry out the purposes of 

18 this section as the Comptroller determines to be ap19 propriate.’’. 

20 SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS FOR NA21 TIONAL BANKS. 

22 (a) IN GENERAL.—Section 5199 of the Revised Stat23 utes of the United States (12 U.S.C. 60) is amended to read 

24 as follows: 
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1 ‘‘SEC. 5199. NATIONAL BANK DIVIDENDS. 

2 ‘‘(a) IN GENERAL.—Subject to subsection (b), the di3 rectors of any national bank may declare a dividend of so 

4 much of the undivided profits of the bank as the directors 

5 judge to be expedient. 

6 ‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIR7 CUMSTANCES.—A national bank may not declare and pay 

8 dividends in any year in excess of an amount equal to the 

9 sum of the total of the net income of the bank for that year 

10 and the retained net income of the bank in the preceding 

11 two years, minus any transfers required by the Comptroller 

12 of the Currency (including any transfers required to be 

13 made to a fund for the retirement of any preferred stock), 

14 unless the Comptroller of the Currency approves the dec15 laration and payment of dividends in excess of such 

16 amount.’’. 

17 (b) CLERICAL AMENDMENT.—The table of sections for 

18 chapter three of title LXII of the Revised Statutes of the 

19 United States is amended by striking the item relating to 

20 section 5199 and inserting the following new item:

‘‘5199. National bank dividends.’’.
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1 SEC. 104. REPEAL OF OBSOLETE LIMITATION ON REMOVAL 

2 AUTHORITY OF THE COMPTROLLER OF THE 

3 CURRENCY. 

4 Section 8(e)(4) of the Federal Deposit Insurance Act 

5 (12 U.S.C. 1818(e)(4)) is amended by striking the 5th sen6 tence. 

7 SEC. 105. REPEAL OF INTRASTATE BRANCH CAPITAL RE8 QUIREMENTS. 

9 Section 5155(c) of the Revised Statutes of the United 

10 States (12 U.S.C. 36(c)) is amended—

11 (1) in the 2nd sentence, by striking ‘‘, without 

12 regard to the capital requirements of this section,’’; 

13 and 

14 (2) by striking the last sentence. 

15 SEC. 106. CLARIFICATION OF WAIVER OF PUBLICATION RE16 QUIREMENTS FOR BANK MERGER NOTICES. 

17 The last sentence of sections 2(a) and 3(a)(2) of the 

18 National Bank Consolidation and Merger Act (12 U.S.C. 

19 215(a) and 215a(a)(2), respectively) are each amended by 

20 striking ‘‘Publication of notice may be waived, in cases 

21 where the Comptroller determines that an emergency exists 

22 justifying such waiver, by unanimous action of the share23 holders of the association or State bank’’ and inserting 

24 ‘‘Publication of notice may be waived if the Comptroller 

25 determines that an emergency exists justifying such waiver 

26 or if the shareholders of the association or State bank agree
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1 by unanimous action to waive the publication requirement 

2 for their respective institutions’’. 

3 SEC. 107. CAPITAL EQUIVALENCY DEPOSITS FOR FEDERAL 

4 BRANCHES AND AGENCIES OF FOREIGN 

5 BANKS. 

6 Section 4(g) of the International Banking Act of 1978 

7 (12 U.S.C. 3102(g)) is amended to read as follows: 

8 ‘‘(g) CAPITAL EQUIVALENCY DEPOSIT.—

9 ‘‘(1) IN GENERAL.—Upon the opening of a Fed10 eral branch or agency of a foreign bank in any State 

11 and thereafter, the foreign bank, in addition to any 

12 deposit requirements imposed under section 6, shall 

13 keep on deposit, in accordance with such regulations 

14 as the Comptroller of the Currency may prescribe in 

15 accordance with paragraph (2), dollar deposits, in16 vestment securities, or other assets in such amounts as 

17 the Comptroller of the Currency determines to be nec18 essary for the protection of depositors and other inves19 tors and to be consistent with the principles of safety 

20 and soundness. 

21 ‘‘(2) LIMITATION.—Notwithstanding paragraph 

22 (1), regulations prescribed under such paragraph 

23 shall not permit a foreign bank to keep assets on de24 posit in an amount that is less than the amount re25 quired for a State licensed branch or agency of a for-
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1 eign bank under the laws and regulations of the State 

2 in which the Federal agency or branch is located.’’. 

3 SEC. 108. EQUAL TREATMENT FOR FEDERAL AGENCIES OF 

4 FOREIGN BANKS. 

5 The 1st sentence of section 4(d) of the International 

6 Banking Act of 1978 (12 U.S.C. 3102(d)) is amended by 

7 inserting ‘‘from citizens or residents of the United States’’ 

8 after ‘‘deposits’’. 

9 SEC. 109. MAINTENANCE OF A FEDERAL BRANCH AND A 

10 FEDERAL AGENCY IN THE SAME STATE. 

11 Section 4(e) of the International Banking Act of 1978 

12 (12 U.S.C. 3102(e)) is amended by inserting ‘‘if the mainte13 nance of both an agency and a branch in the State is pro14 hibited under the law of such State’’ before the period at 

15 the end. 

16 SEC. 110. BUSINESS ORGANIZATION FLEXIBILITY FOR NA17 TIONAL BANKS. 

18 (a) IN GENERAL.—Chapter one of title LXII of the Re19 vised Statutes of the United States (12 U.S.C. 21 et seq.) 

20 is amended by inserting after section 5136B the following 

21 new section: 

22 ‘‘SEC. 5136C. ALTERNATIVE BUSINESS ORGANIZATION. 

23 ‘‘(a) IN GENERAL.—The Comptroller of the Currency 

24 may prescribe regulations—
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1 ‘‘(1) to permit a national bank to be organized 

2 other than as a body corporate; and 

3 ‘‘(2) to provide requirements for the organiza4 tional characteristics of a national bank organized 

5 and operating other than as a body corporate, con6 sistent with the safety and soundness of the national 

7 bank. 

8 ‘‘(b) EQUAL TREATMENT.—Except as provided in reg9 ulations prescribed under subsection (a), a national bank 

10 that is operating other than as a body corporate shall have 

11 the same rights and privileges and shall be subject to the 

12 same duties, restrictions, penalties, liabilities, conditions, 

13 and limitations as a national bank that is organized as 

14 a body corporate.’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec16 tion 5136 of the Revised Statutes of the United States (12 

17 U.S.C. 24) is amended, in the matter preceding the para18 graph designated as the ‘‘First’’, by inserting ‘‘or other form 

19 of business organization provided under regulations pre20 scribed by the Comptroller of the Currency under section 

21 5136C’’ after ‘‘a body corporate’’. 

22 (c) CLERICAL AMENDMENT.—The table of sections for 

23 chapter one of title LXII of the Revised Statutes of the 

24 United States (12 U.S.C. 21 et seq.) is amended by insert-
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1 ing after the item relating to section 5136B the following 

2 new item:

‘‘5136C. Alternative business organization.’’.

3 SEC. 111. CLARIFICATION OF THE MAIN PLACE OF BUSI4 NESS OF A NATIONAL BANK. 

5 Title LXII of the Revised Statutes of the United States 

6 is amended—

7 (1) in the paragraph designated the ‘‘Second’’ of 

8 section 5134 (12 U.S.C. 22), by striking ‘‘The place 

9 where its operations of discount and deposit are to be 

10 carried on’’ and inserting ‘‘The place where the main 

11 office of the national bank is, or is to be, located’’; 

12 and 

13 (2) in section 5190 (12 U.S.C. 81), by striking 

14 ‘‘the place specified in its organization certificate’’ 

15 and inserting ‘‘the main office of the national bank’’.

16 TITLE II—SAVINGS ASSOCIATION 

17 PROVISIONS 

18 SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE 

19 SECURITIES EXCHANGE ACT OF 1934 AND THE 

20 INVESTMENT ADVISERS ACT OF 1940. 

21 (a) SECURITIES EXCHANGE ACT OF 1934.—

22 (1) DEFINITION OF BANK.—Section 3(a)(6) of 

23 the Securities Exchange Act of 1934 (15 U.S.C. 

24 78c(a)(6)) is amended—
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1 (A) in subparagraph (A), by inserting ‘‘or 

2 a Federal savings association, as defined in sec3 tion 2(5) of the Home Owners’ Loan Act’’ after 

4 ‘‘a banking institution organized under the laws 

5 of the United States’’; and 

6 (B) in subparagraph (C)—

7 (i) by inserting ‘‘or savings association 

8 as defined in section 2(4) of the Home Own9 ers’ Loan Act,’’ after ‘‘banking institution,’’; 

10 and 

11 (ii) by inserting ‘‘or savings associa12 tions’’ after ‘‘having supervision over 

13 banks’’. 

14 (2) INCLUDE OTS UNDER THE DEFINITION OF

15 APPROPRIATE REGULATORY AGENCY FOR CERTAIN

16 PURPOSES.—Section 3(a)(34) of such Act (15 U.S.C. 

17 78c(a)(34)) is amended—

18 (A) in subparagraph (A)—

19 (i) in clause (ii), by striking ‘‘(i) or 

20 (iii)’’ and inserting ‘‘(i), (iii), or (iv)’’; 

21 (ii) by striking ‘‘and’’ at the end of 

22 clause (iii); 

23 (iii) by redesignating clause (iv) as 

24 clause (v); and
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1 (iv) by inserting the following new 

2 clause after clause (iii): 

3 ‘‘(iv) the Director of the Office of 

4 Thrift Supervision, in the case of a savings 

5 association (as defined in section 3(b) of the 

6 Federal Deposit Insurance Act (12 U.S.C. 

7 1813(b))) the deposits of which are insured 

8 by the Federal Deposit Insurance Corpora9 tion, a subsidiary or a department or divi10 sion of any such savings association, or a 

11 savings and loan holding company; and’’;

12 (B) in subparagraph (B)—

13 (i) in clause (ii), by striking ‘‘(i) or 

14 (iii)’’ and inserting ‘‘(i), (iii), or (iv)’’; 

15 (ii) by striking ‘‘and’’ at the end of 

16 clause (iii); 

17 (iii) by redesignating clause (iv) as 

18 clause (v); and 

19 (iv) by inserting the following new 

20 clause after clause (iii): 

21 ‘‘(iv) the Director of the Office of 

22 Thrift Supervision, in the case of a savings 

23 association (as defined in section 3(b) of the 

24 Federal Deposit Insurance Act (12 U.S.C. 

25 1813(b))) the deposits of which are insured 
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1 by the Federal Deposit Insurance Corpora2 tion, or a subsidiary of any such savings 

3 association, or a savings and loan holding 

4 company; and’’; 

5 (C) in subparagraph (C)—

6 (i) in clause (ii), by striking ‘‘(i) or 

7 (iii)’’ and inserting ‘‘(i), (iii), or (iv)’’; 

8 (ii) by striking ‘‘and’’ at the end of 

9 clause (iii); 

10 (iii) by redesignating clause (iv) as 

11 clause (v); and 

12 (iv) by inserting the following new 

13 clause after clause (iii): 

14 ‘‘(iv) the Director of the Office of 

15 Thrift Supervision, in the case of a savings 

16 association (as defined in section 3(b) of the 

17 Federal Deposit Insurance Act (12 U.S.C. 

18 1813(b))) the deposits of which are insured 

19 by the Federal Deposit Insurance Corpora20 tion, a savings and loan holding company, 

21 or a subsidiary of a savings and loan hold22 ing company when the appropriate regu23 latory agency for such clearing agency is 

24 not the Commission; and’’; 

25 (D) in subparagraph (D)—
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1 (i) by striking ‘‘and’’ at the end of 

2 clause (ii); 

3 (ii) by redesignating clause (iii) as 

4 clause (iv); and 

5 (iii) by inserting the following new 

6 clause after clause (ii): 

7 ‘‘(iii) the Director of the Office of 

8 Thrift Supervision, in the case of a savings 

9 association (as defined in section 3(b) of the 

10 Federal Deposit Insurance Act (12 U.S.C. 

11 1813(b))) the deposits of which are insured 

12 by the Federal Deposit Insurance Corpora13 tion; and’’; 

14 (E) in subparagraph (F)—

15 (i) by redesignating clauses (ii), (iii), 

16 and (iv) as clauses (iii), (iv), and (v), re17 spectively; and 

18 (ii) by inserting the following new 

19 clause after clause (i): 

20 ‘‘(ii) the Director of the Office of Thrift 

21 Supervision, in the case of a savings asso22 ciation (as defined in section 3(b) of the 

23 Federal Deposit Insurance Act (12 U.S.C. 

24 1813(b))) the deposits of which are insured 
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1 by the Federal Deposit Insurance Corpora2 tion; and’’; 

3 (F) by moving subparagraph (H) and in4 serting such subparagraph after subparagraph 

5 (G); and 

6 (G) by adding at the end the following new 

7 sentence: ‘‘As used in this paragraph, the term 

8 ‘savings and loan holding company’ has the 

9 meaning given it in section 10(a) of the Home 

10 Owners’ Loan Act (12 U.S.C. 1467a(a)).’’. 

11 (b) INVESTMENT ADVISERS ACT OF 1940.—

12 (1) DEFINITION OF BANK.—Section 202(a)(2) of 

13 the Investment Advisers Act of 1940 (15 U.S.C. 80b–

14 2(a)(2)) is amended—

15 (A) in subparagraph (A) by inserting ‘‘or a 

16 Federal savings association, as defined in section 

17 2(5) of the Home Owners’ Loan Act’’ after ‘‘a 

18 banking institution organized under the laws of 

19 the United States’’; and 

20 (B) in subparagraph (C)—

21 (i) by inserting ‘‘, savings association 

22 as defined in section 2(4) of the Home Own23 ers’ Loan Act,’’ after ‘‘banking institution’’; 

24 and 
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1 (ii) by inserting ‘‘or savings associa2 tions’’ after ‘‘having supervision over 

3 banks’’. 

4 (2) CONFORMING AMENDMENTS.—Subsections 

5 (a)(1)(A)(i), (a)(1)(B), (a)(2), and (b) of section 210A 

6 of such Act (15 U.S.C. 80b–10a), as added by section 

7 220 of the Gramm-Leach-Bliley Act, are each amend8 ed by striking ‘‘bank holding company’’ each place it 

9 occurs and inserting ‘‘bank holding company or sav10 ings and loan holding company’’. 

11 (c) CONFORMING AMENDMENT TO THE INVESTMENT

12 COMPANY ACT OF 1940.—Section 10(c) of the Investment 

13 Company Act of 1940 (15 U.S.C. 80a–10(c)), as amended 

14 by section 213(c) of the Gramm-Leach-Bliley Act, is amend15 ed by inserting after ‘‘1956)’’ the following: ‘‘or any one 

16 savings and loan holding company (together with its affili17 ates and subsidiaries) (as such terms are defined in section 

18 10 of the Home Owners’ Loan Act)’’. 

19 SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA20 TIONS AUTHORIZED TO PROMOTE THE PUB21 LIC WELFARE. 

22 (a) IN GENERAL.—Section 5(c)(3) of the Home Own23 ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding 

24 at the end the following new subparagraph:
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1 ‘‘(D) DIRECT INVESTMENTS TO PROMOTE

2 THE PUBLIC WELFARE.—

3 ‘‘(i) IN GENERAL.—A Federal savings 

4 association may make investments designed 

5 primarily to promote the public welfare, in6 cluding the welfare of low- and moderate-in7 come communities or families through the 

8 provision of housing, services, and jobs. 

9 ‘‘(ii) DIRECT INVESTMENTS OR ACQUI10 SITION OF INTEREST IN OTHER COMPA11 NIES.—Investments under clause (i) may be 

12 made directly or by purchasing interests in 

13 an entity primarily engaged in making 

14 such investments. 

15 ‘‘(iii) PROHIBITION ON UNLIMITED LI16 ABILITY.—No investment may be made 

17 under this subparagraph which would sub18 ject a Federal savings association to unlim19 ited liability to any person. 

20 ‘‘(iv) SINGLE INVESTMENT LIMITATION

21 TO BE ESTABLISHED BY DIRECTOR.—Sub22 ject to clauses (v) and (vi), the Director 

23 shall establish, by order or regulation, lim24 its on—
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1 ‘‘(I) the amount any savings asso2 ciation may invest in any 1 project; 

3 and 

4 ‘‘(II) the aggregate amount of in5 vestment of any savings association 

6 under this subparagraph. 

7 ‘‘(v) FLEXIBLE AGGREGATE INVEST8 MENT LIMITATION.—The aggregate amount 

9 of investments of any savings association 

10 under this subparagraph may not exceed an 

11 amount equal to the sum of 5 percent of the 

12 savings association’s capital stock actually 

13 paid in and unimpaired and 5 percent of 

14 the savings association’s unimpaired sur15 plus, unless—

16 ‘‘(I) the Director determines that 

17 the savings association is adequately 

18 capitalized; and 

19 ‘‘(II) the Director determines, by 

20 order, that the aggregate amount of in21 vestments in a higher amount than the 

22 limit under this clause will pose no 

23 significant risk to the affected deposit 

24 insurance fund. 
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1 ‘‘(vi) MAXIMUM AGGREGATE INVEST2 MENT LIMITATION.—Notwithstanding clause 

3 (v), the aggregate amount of investments of 

4 any savings association under this subpara5 graph may not exceed an amount equal to 

6 the sum of 10 percent of the savings associa7 tion’s capital stock actually paid in and 

8 unimpaired and 10 percent of the savings 

9 association’s unimpaired surplus. 

10 ‘‘(vii) INVESTMENTS NOT SUBJECT TO

11 OTHER LIMITATION ON QUALITY OF INVEST12 MENTS.—No obligation a Federal savings 

13 association acquires or retains under this 

14 subparagraph shall be taken into account 

15 for purposes of the limitation contained in 

16 section 28(d) of the Federal Deposit Insur17 ance Act on the acquisition and retention of 

18 any corporate debt security not of invest19 ment grade.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec21 tion 5(c)(3)(A) of the Home Owners’ Loan Act (12 U.S.C. 

22 1464(c)(3)(A)) is amended to read as follows: 

23 ‘‘(A) [Repealed.]’’.
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1 SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL 

2 SAVINGS ASSOCIATIONS WITH NONDEPOSI3 TORY INSTITUTION AFFILIATES. 

4 Section 5(d)(3) of the Home Owners’ Loan Act (12 

5 U.S.C. 1464(d)(3)) is amended—

6 (1) by redesignating subparagraph (B) as sub7 paragraph (C); and 

8 (2) by inserting after subparagraph (A) the fol9 lowing new subparagraph: 

10 ‘‘(B) MERGERS AND CONSOLIDATIONS WITH

11 NONDEPOSITORY INSTITUTION AFFILIATES.—

12 ‘‘(i) IN GENERAL.—Upon the approval 

13 of the Director, a Federal savings associa14 tion may merge with any nondepository in15 stitution affiliate of the savings association. 

16 ‘‘(ii) RULE OF CONSTRUCTION.—No 

17 provision of clause (i) shall be construed 

18 as—

19 ‘‘(I) affecting the applicability of 

20 section 18(c) of the Federal Deposit In21 surance Act; or 

22 ‘‘(II) granting a Federal savings 

23 association any power or any author24 ity to engage in any activity that is 

25 not authorized for a Federal savings 

26 association under any other provision 
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1 of this Act or any other provision of 

2 law.’’. 

3 SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE4 QUIREMENT FOR SAVINGS ASSOCIATION SUB5 SIDIARIES OF SAVINGS AND LOAN HOLDING 

6 COMPANIES. 

7 Section 10(f) of the Home Owners’ Loan Act (12 

8 U.S.C. 1467a(f)) is amended to read as follows: 

9 ‘‘(f) DECLARATION OF DIVIDEND.—The Director 

10 may—

11 ‘‘(1) require a savings association that is a sub12 sidiary of a savings and loan holding company to 

13 give prior notice to the Director of the intent of the 

14 savings association to pay a dividend on its guar15 anty, permanent, or other nonwithdrawable stock; 

16 and 

17 ‘‘(2) establish conditions on the payment of divi18 dends by such a savings association.’’. 

19 SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR 

20 TRUST OWNERSHIP OF SAVINGS ASSOCIA21 TIONS. 

22 (a) IN GENERAL.—Section 10(a)(1)(C) of the Home 

23 Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is amend24 ed—
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1 (1) by striking ‘‘trust,’’ and inserting ‘‘business 

2 trust,’’; and 

3 (2) by inserting ‘‘or any other trust unless by its 

4 terms it must terminate within 25 years or not later 

5 than 21 years and 10 months after the death of indi6 viduals living on the effective date of the trust,’’ after 

7 ‘‘or similar organization,’’. 

8 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec9 tion 10(a)(3) of the Home Owners’ Loan Act (12 U.S.C. 

10 1467a(a)(3)) is amended—

11 (1) by striking ‘‘does not include—’’ and all that 

12 follows through ‘‘any company by virtue’’ where such 

13 term appears in subparagraph (A) and inserting 

14 ‘‘does not include any company by virtue’’; 

15 (2) by striking ‘‘; and’’ at the end of subpara16 graph (A) and inserting a period; and 

17 (3) by striking subparagraph (B). 

18 SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING 

19 PURCHASED MORTGAGE SERVICING RIGHTS. 

20 Section 5(t) of the Home Owners’ Loan Act (12 U.S.C. 

21 1464(t)) is amended—

22 (1) by striking paragraph (4) and inserting the 

23 following new paragraph: 

24 ‘‘(4) [Repealed.]’’; and 
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1 (2) in paragraph (9)(A), by striking ‘‘intangible 

2 assets, plus’’ and all that follows through the period 

3 at the end and inserting ‘‘intangible assets.’’. 

4 SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL SAV5 INGS ASSOCIATIONS TO INVEST IN SMALL 

6 BUSINESS INVESTMENT COMPANIES. 

7 Subparagraph (D) of section 5(c)(4) of the Home Own8 ers’ Loan Act (12 U.S.C. 1464(c)(4)) is amended to read 

9 as follows: 

10 ‘‘(D) SMALL BUSINESS INVESTMENT COMPA11 NIES.—Any Federal savings association may in12 vest in 1 or more small business investment com13 panies, or in any entity established to invest 

14 solely in small business investment companies 

15 formed under the Small Business Investment Act 

16 of 1958, except that the total amount of invest17 ments under this subparagraph may not at any 

18 time exceed the amount equal to 5 percent of 

19 capital and surplus of the savings association.’’. 

20 SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN 

21 AUTO LOANS. 

22 (a) IN GENERAL.—Section 5(c)(1) of the Home Own23 ers’ Loan Act (12 U.S.C. 1464(c)(1)) is amended by adding 

24 at the end the following new subparagraph: 
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1 ‘‘(V) AUTO LOANS.—Loans and leases for 

2 motor vehicles acquired for personal, family, or 

3 household purposes.’’. 

4 (b) TECHNICAL AND CONFORMING AMENDMENT RE5 LATING TO QUALIFIED THRIFT INVESTMENTS.—Section 

6 10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12 U.S.C. 

7 1467a(m)(4)(C)(ii)) is amended by adding at the end the 

8 following new subclause: 

9 ‘‘(VIII) Loans and leases for 

10 motor vehicles acquired for personal, 

11 family, or household purposes.’’.

12 SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS. 

13 Section 15(h) of the Securities Exchange Act of 

14 1934 (15 U.S.C. 78o(h)) is amended by adding at the 

15 end the following new paragraph: 

16 ‘‘(4) SELLING AND OFFERING OF DEPOSIT PROD17 UCTS.—No law, rule, regulation, or order, or other 

18 administrative action of any State or political sub19 division thereof shall directly or indirectly require 

20 any individual who is an agent of 1 Federal savings 

21 association (as such term is defined in section 2(5) 

22 of the Home Owners’ Loan Act (12 U.S.C. 1462(5)) 

23 in selling or offering deposit (as such term is defined 

24 in section 3 of the Federal Deposit Insurance Act (12 

25 U.S.C. 1813(l)) products issued by such association 
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1 to qualify or register as a broker, dealer, associated 

2 person of a broker, or associated person of a dealer, 

3 or to qualify or register in any other similar status 

4 or capacity, if the individual does not—

5 ‘‘(A) accept deposits or make withdrawals 

6 on behalf of any customer of the association; 

7 ‘‘(B) offer or sell a deposit product as an 

8 agent for another entity that is not subject to su9 pervision and examination by a Federal banking 

10 agency (as defined in section 3(z) of the Federal 

11 Deposit Insurance Act (12 U.S.C. 1813(z)), the 

12 National Credit Union Administration, or any 

13 officer, agency, or other entity of any State 

14 which has primary regulatory authority over 

15 State banks, State savings associations, or State 

16 credit unions; 

17 ‘‘(C) offer or sell a deposit product that is 

18 not an insured deposit (as defined in section 

19 3(m) of the Federal Deposit Insurance Act (12 

20 U.S.C. 1813(m))); 

21 ‘‘(D) offer or sell a deposit product which 

22 contains a feature that makes it callable at the 

23 option of such Federal savings association; or 

24 ‘‘(E) create a secondary market with respect 

25 to a deposit product or otherwise add enhance-
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1 ments or features to such product independent of 

2 those offered by the association.’’. 

3 SEC. 210. FUNERAL- AND CEMETERY-RELATED FIDUCIARY 

4 SERVICES. 

5 Section 5(n) of the Home Owners’ Loan Act (12 U.S.C. 

6 1464(n)) is amended by adding at the end the following 

7 new paragraph: 

8 ‘‘(11) FUNERAL- AND CEMETERY-RELATED FIDU9 CIARY SERVICES.—

10 ‘‘(A) IN GENERAL.—A funeral director or 

11 cemetery operator, when acting in such capacity, 

12 (or any other person in connection with a con13 tract or other agreement with a funeral director 

14 or cemetery operator) may engage any Federal 

15 savings association, regardless of where the asso16 ciation is located, to act in any fiduciary capac17 ity in which the savings association has the right 

18 to act in accordance with this section, including 

19 holding funds deposited in trust or escrow by the 

20 funeral director or cemetery operator (or by such 

21 other party), and the savings association may 

22 act in such fiduciary capacity on behalf of the 

23 funeral director or cemetery operator (or such 

24 other person).
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1 ‘‘(B) DEFINITIONS.—For purposes of this 

2 paragraph, the following definitions shall apply: 

3 ‘‘(i) CEMETERY.—The term ‘cemetery’ 

4 means any land or structure used, or in5 tended to be used, for the interment of 

6 human remains in any form. 

7 ‘‘(ii) CEMETERY OPERATOR.—The term 

8 ‘cemetery operator’ means any person who 

9 contracts or accepts payment for merchan10 dise, endowment, or perpetual care services 

11 in connection with a cemetery. 

12 ‘‘(iii) FUNERAL DIRECTOR.—The term 

13 ‘funeral director’ means any person who 

14 contracts or accepts payment to provide or 

15 arrange—

16 ‘‘(I) services for the final disposi17 tion of human remains; or 

18 ‘‘(II) funeral services, property, or 

19 merchandise (including cemetery serv20 ices, property, or merchandise).’’. 

21 SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER REQUIRE22 MENT WITH RESPECT TO OUT-OF-STATE 

23 BRANCHES. 

24 Section 5(r)(1) of the Home Owners’ Loan Act (12 

25 U.S.C. 1464(r)(1)) is amended by striking the last sentence.
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1 SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL 

2 LOANS. 

3 (a) ELIMINATION OF LENDING LIMIT ON SMALL BUSI4 NESS LOANS.—Section 5(c)(1) of the Home Owners’ Loan 

5 Act (12 U.S.C. 1464(c)(1)) is amended by inserting after 

6 subparagraph (V) (as added by section 208 of this title) 

7 the following new subparagraph: 

8 ‘‘(W) SMALL BUSINESS LOANS.—Small 

9 business loans, as defined in regulations which 

10 the Director shall prescribe.’’. 

11 (b) INCREASE IN LENDING LIMIT ON OTHER BUSINESS

12 LOANS.—Section 5(c)(2)(A) of the Home Owners’ Loan Act 

13 (12 U.S.C. 1464(c)(2)(A)) is amended by striking ‘‘, and 

14 amounts in excess of 10 percent’’ and all that follows 

15 through ‘‘by the Director’’. 

16 SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 

17 ASSOCIATIONS FOR FEDERAL COURT JURIS18 DICTION. 

19 Section 5 of the Home Owners’ Loan Act (12 U.S.C. 

20 1464) is amended by adding at the end the following new 

21 subsection: 

22 ‘‘(x) HOME STATE CITIZENSHIP.—In determining 

23 whether a Federal court has diversity jurisdiction over a 

24 case in which a Federal savings association is a party, the 

25 Federal savings association shall be considered to be a cit-
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1 izen only of the State in which such savings association 

2 has its main office.’’. 

3 SEC. 214. CLARIFICATION OF APPLICABILITY OF CERTAIN 

4 PROCEDURAL DOCTRINES. 

5 Section 11A(d) of the Federal Deposit Insurance Act 

6 (12 U.S.C. 1821a(d)) is amended—

7 (1) by striking ‘‘LEGAL PROCEEDINGS.—Any 

8 judgment’’ and inserting ‘‘LEGAL PROCEEDINGS.—

9 ‘‘(1) IN GENERAL.—Any judgment’’; and 

10 (2) by adding at the end the following new para11 graph: 

12 ‘‘(2) CLARIFICATION OF APPLICABILITY OF CER13 TAIN PROCEDURAL DOCTRINES.—In any proceeding 

14 seeking a monetary recovery against the United 

15 States, or an agency or official thereof, based upon 

16 actions of the Federal Savings and Loan Insurance 

17 Corporation prior to its dissolution, or the Federal 

18 Home Loan Bank Board prior to its dissolution, and 

19 arising from the Financial Institutions Reform, Re20 covery, and Enforcement Act of 1989 or its implemen21 tation, and where any monetary recovery in such pro22 ceeding would be paid from the FSLIC Resolution 

23 Fund or any supplements thereto, neither the United 

24 States Court of Federal Claims, the United States 

25 Court of Appeals for the Federal Circuit, nor any 
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1 other court of competent jurisdiction shall dismiss, or 

2 affirm on appeal the dismissal of, the claims of any 

3 party seeking such monetary recovery, on the basis of 

4 res judicata, collateral estoppel, or any similar doc5 trine, defense, or rule of law, based upon any deci6 sion, opinion, or order of judgment entered by any 

7 court prior to July 1, 1996. Unless some other defense 

8 is applicable, in any such proceeding, the United 

9 States Court of Federal Claims, the United States 

10 Court of Appeals for the Federal Circuit, and any 

11 other court of competent jurisdiction shall review the 

12 merits of the claims of the party seeking such mone13 tary relief and shall enter judgment accordingly.’’.

14 TITLE III—CREDIT UNION 

15 PROVISIONS 

16 SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR17 IZED TO BECOME MEMBERS OF A FEDERAL 

18 HOME LOAN BANK. 

19 (a) IN GENERAL.—Section 4(a) of the Federal Home 

20 Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 

21 at the end the following new paragraph: 

22 ‘‘(5) CERTAIN PRIVATELY INSURED CREDIT

23 UNIONS.—

24 ‘‘(A) IN GENERAL.—A credit union which 

25 has been determined, in accordance with section 
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1 43(e)(1) of the Federal Deposit Insurance Act 

2 and subject to the requirements of subparagraph 

3 (B), to meet all eligibility requirements for Fed4 eral deposit insurance shall be treated as an in5 sured depository institution for purposes of de6 termining the eligibility of such credit union for 

7 membership in a Federal home loan bank under 

8 paragraphs (1), (2), and (3). 

9 ‘‘(B) CERTIFICATION BY APPROPRIATE SU10 PERVISOR.—

11 ‘‘(i) IN GENERAL.—For purposes of 

12 this paragraph and subject to clause (ii), a 

13 credit union which lacks Federal deposit in14 surance and which has applied for member15 ship in a Federal home loan bank may be 

16 treated as meeting all the eligibility require17 ments for Federal deposit insurance only if 

18 the appropriate supervisor of the State in 

19 which the credit union is chartered has de20 termined that the credit union meets all the 

21 eligibility requirements for Federal deposit 

22 insurance as of the date of the application 

23 for membership. 

24 ‘‘(ii) CERTIFICATION DEEMED

25 VALID.—If, in the case of any credit union 
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1 to which clause (i) applies, the appropriate 

2 supervisor of the State in which such credit 

3 union is chartered fails to make a deter4 mination pursuant to such clause by the 

5 end of the 6-month period beginning on the 

6 date of the application, the credit union 

7 shall be deemed to have met the require8 ments of clause (i). 

9 ‘‘(C) SECURITY INTERESTS OF FEDERAL

10 HOME LOAN BANK NOT AVOIDABLE.—Notwith11 standing any provision of State law authorizing 

12 a conservator or liquidating agent of a credit 

13 union to repudiate contracts, no such provision 

14 shall apply with respect to—

15 ‘‘(i) any extension of credit from any 

16 Federal home loan bank to any credit union 

17 which is a member of any such bank pursu18 ant to this paragraph; or 

19 ‘‘(ii) any security interest in the assets 

20 of such credit union securing any such ex21 tension of credit.’’. 

22 (b) COPIES OF AUDITS OF PRIVATE INSURERS OF

23 CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE

24 PROVIDED TO SUPERVISORY AGENCIES.—Section 43(a)(2) 
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1 of the Federal Deposit Insurance Act (12 U.S.C. 

2 1831t(a)(2)) is amended—

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (A)(i); 

5 (2) by striking the period at the end of clause 

6 (ii) of subparagraph (A) and inserting a semicolon; 

7 (3) by inserting the following new clauses at the 

8 end of subparagraph (A): 

9 ‘‘(iii) in the case of depository institu10 tions described in subsection (f)(2)(A) the 

11 deposits of which are insured by the private 

12 insurer, the National Credit Union Admin13 istration, not later than 7 days after that 

14 audit is completed; and 

15 ‘‘(iv) in the case of depository institu16 tions described in subsection (f)(2)(A) the 

17 deposits of which are insured by the private 

18 insurer which are members of a Federal 

19 home loan bank, the Federal Housing Fi20 nance Board, not later than 7 days after 

21 that audit is completed.’’; and 

22 (4) by adding at the end the following new sub23 paragraph: 

24 ‘‘(C) CONSULTATION.—The appropriate su25 pervisory agency of each State in which a pri-
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1 vate deposit insurer insures deposits in an insti2 tution described in subsection (f)(2)(A) which—

3 ‘‘(i) lacks Federal deposit insurance; 

4 and 

5 ‘‘(ii) has become a member of a Fed6 eral home loan bank, 

7 shall provide the National Credit Union Admin8 istration, upon request, with the results of any 

9 examination and reports related thereto con10 cerning the private deposit insurer to which such 

11 agency may have in its possession.’’.

12 SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR 

13 CREDIT UNIONS. 

14 (a) IN GENERAL.—Section 124 of the Federal Credit 

15 Union Act (12 U.S.C. 1770) is amended—

16 (1) by striking ‘‘Upon application by any credit 

17 union’’ and inserting ‘‘Notwithstanding any other 

18 provision of law, upon application by any credit 

19 union’’; 

20 (2) by inserting ‘‘on lands reserved for the use of, 

21 and under the exclusive or concurrent jurisdiction of, 

22 the United States or’’ after ‘‘officer or agency of the 

23 United States charged with the allotment of space’’; 

24 (3) by inserting ‘‘lease land or’’ after ‘‘such offi25 cer or agency may in his or its discretion’’; and 
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1 (4) by inserting ‘‘or the facility built on the lease 

2 land’’ after ‘‘credit union to be served by the allot3 ment of space’’. 

4 (b) CLERICAL AMENDMENT.—The heading for section 

5 124 is amended by inserting ‘‘OR FEDERAL LAND’’ after 

6 ‘‘BUILDINGS’’. 

7 SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED8 IT UNIONS. 

9 Section 107 of the Federal Credit Union Act (12 

10 U.S.C. 1757) is amended—

11 (1) in the matter preceding paragraph (1) by 

12 striking ‘‘A Federal credit union’’ and inserting ‘‘(a) 

13 IN GENERAL.—Any Federal credit union’’; and 

14 (2) by adding at the end the following new sub15 section: 

16 ‘‘(b) INVESTMENT FOR THE CREDIT UNION’S OWN AC17 COUNT.—

18 ‘‘(1) IN GENERAL.—A Federal credit union may 

19 purchase and hold for its own account such invest20 ment securities of investment grade as the Board may 

21 authorize by regulation, subject to such limitations 

22 and restrictions as the Board may prescribe in the 

23 regulations. 

24 ‘‘(2) PERCENTAGE LIMITATIONS.—
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1 ‘‘(A) SINGLE OBLIGOR.—In no event may 

2 the total amount of investment securities of any 

3 single obligor or maker held by a Federal credit 

4 union for the credit union’s own account exceed 

5 at any time an amount equal to 10 percent of 

6 the net worth of the credit union. 

7 ‘‘(B) AGGREGATE INVESTMENTS.—In no 

8 event may the aggregate amount of investment 

9 securities held by a Federal credit union for the 

10 credit union’s own account exceed at any time 

11 an amount equal to 10 percent of the assets of 

12 the credit union. 

13 ‘‘(3) INVESTMENT SECURITY DEFINED.—

14 ‘‘(A) IN GENERAL.—For purposes of this 

15 subsection, the term ‘investment security’ means 

16 marketable obligations evidencing the indebted17 ness of any person in the form of bonds, notes, 

18 or debentures and other instruments commonly 

19 referred to as investment securities. 

20 ‘‘(B) FURTHER DEFINITION BY BOARD.—

21 The Board may further define the term ‘invest22 ment security’. 

23 ‘‘(4) INVESTMENT GRADE DEFINED.—The term 

24 ‘investment grade’ means with respect to an invest25 ment security purchased by a credit union for its own 
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1 account, an investment security that at the time of 

2 such purchase is rated in one of the 4 highest rating 

3 categories by at least 1 nationally recognized statis4 tical rating organization. 

5 ‘‘(5) CLARIFICATION OF PROHIBITION ON STOCK

6 OWNERSHIP.—No provision of this subsection shall be 

7 construed as authorizing a Federal credit union to 

8 purchase shares of stock of any corporation for the 

9 credit union’s own account, except as otherwise per10 mitted by law.’’. 

11 SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF 

12 TERM OF FEDERAL CREDIT UNION LOANS TO 

13 15 YEARS. 

14 Section 107(a)(5) of the Federal Credit Union Act (12 

15 U.S.C. 1757(5)) (as so designated by section 303 of this 

16 title) is amended—

17 (1) in the matter preceding subparagraph (A), 

18 by striking ‘‘to make loans, the maturities of which 

19 shall not exceed twelve years except as otherwise pro20 vided herein’’ and inserting ‘‘to make loans, the ma21 turities of which shall not exceed 15 years or any 

22 longer maturity as the Board may allow, in regula23 tions, except as otherwise provided in this Act’’; 

24 (2) in subparagraph (A)—

25 (A) by striking clause (ii); 
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1 (B) by redesignating clauses (iii) through 

2 (x) as clauses (ii) through (ix), respectively; and 

3 (C) by inserting ‘‘and’’ after the semicolon 

4 at the end of clause (viii) (as so redesignated). 

5 SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN 

6 CREDIT UNION SERVICE ORGANIZATIONS. 

7 Section 107(a)(7)(I) of the Federal Credit Union Act 

8 (12 U.S.C. 1757(7)(I)) (as so designated by section 303 of 

9 this title) is amended by striking ‘‘up to 1 per centum of 

10 the total paid’’ and inserting ‘‘up to 3 percent of the total 

11 paid’’. 

12 SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS 

13 TO NONPROFIT RELIGIOUS ORGANIZATIONS. 

14 Section 107A(a) of the Federal Credit Union Act (12 

15 U.S.C. 1757a(a)) is amended by inserting ‘‘, excluding 

16 loans made to nonprofit religious organizations,’’ after 

17 ‘‘total amount of such loans’’.

18 SEC. 307. CHECK CASHING AND MONEY TRANSFER SERV19 ICES OFFERED WITHIN THE FIELD OF MEM20 BERSHIP. 

21 Paragraph (12) of section 107(a) of the Federal Credit 

22 Union Act (12 U.S.C. 1757(12)) (as so designated by sec23 tion 303 of this title) is amended to read as follows: 

24 ‘‘(12) in accordance with regulations prescribed 

25 by the Board—
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1 ‘‘(A) to sell, to persons in the field of mem2 bership, negotiable checks (including travelers 

3 checks), money orders, and other similar money 

4 transfer instruments (including electronic fund 

5 transfers); and 

6 ‘‘(B) to cash checks and money orders and 

7 receive electronic fund transfers for persons in 

8 the field of membership for a fee;’’.

9 SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE 

10 COMMON-BOND CREDIT UNIONS. 

11 Section 109(d)(2) of the Federal Credit Union Act (12 

12 U.S.C. 1759(d)(2)) is amended—

13 (1) by striking ‘‘or’’ at the end of clause (ii) of 

14 subparagraph (B); 

15 (2) by striking the period at the end of subpara16 graph (C) and inserting ‘‘; or’’; and 

17 (3) by adding at the end the following new sub18 paragraph: 

19 ‘‘(D) a merger involving any such Federal 

20 credit union approved by the Board on or after 

21 August 7, 1998.’’. 
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1 SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CRED2 IT UNIONS. 

3 Section 109(g) of the Federal Credit Union Act (12 

4 U.S.C. 1759(g)) is amended by inserting after paragraph 

5 (2) the following new paragraph: 

6 ‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP OF

7 CERTAIN MEMBER GROUPS IN COMMUNITY CHARTER

8 CONVERSIONS.—In the case of a voluntary conversion 

9 of a common-bond credit union described in para10 graph (1) or (2) of subsection (b) into a community 

11 credit union described in subsection (b)(3), the Board 

12 shall prescribe, by regulation, the criteria under 

13 which the Board may determine that a member group 

14 or other portion of a credit union’s existing member15 ship, that is located outside the well-defined local 

16 community, neighborhood, or rural district that shall

17 constitute the community charter, can be satisfac18 torily served by the credit union and remain within 

19 the community credit union’s field of membership.’’. 

20 SEC. 310. CREDIT UNION GOVERNANCE. 

21 (a) EXPULSION OF MEMBERS FOR JUST CAUSE.—

22 Subsection (b) of section 118 of the Federal Credit Union 

23 Act (12 U.S.C. 1764(b)) is amended to read as follows: 

24 ‘‘(b) POLICY AND ACTIONS OF BOARDS OF DIRECTORS

25 OF FEDERAL CREDIT UNIONS.—
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1 ‘‘(1) EXPULSION OF MEMBERS FOR NONPARTICI2 PATION OR FOR JUST CAUSE.—The board of directors 

3 of a Federal credit union may, by majority vote of a 

4 quorum of directors, adopt and enforce a policy with 

5 respect to expulsion from membership, by a majority 

6 vote of such board of directors, based on just cause, 

7 including disruption of credit union operations, or on 

8 nonparticipation by a member in the affairs of the 

9 credit union. 

10 ‘‘(2) WRITTEN NOTICE OF POLICY TO MEM11 BERS.—If a policy described in paragraph (1) is 

12 adopted, written notice of the policy as adopted and 

13 the effective date of such policy shall be provided to—

14 ‘‘(A) each existing member of the credit 

15 union not less than 30 days prior to the effective 

16 date of such policy; and 

17 ‘‘(B) each new member prior to or upon ap18 plying for membership.’’. 

19 (b) TERM LIMITS AUTHORIZED FOR BOARD MEMBERS

20 OF FEDERAL CREDIT UNIONS.—Section 111(a) of the Fed21 eral Credit Union Act (12 U.S.C. 1761(a)) is amended by 

22 adding at the end the following new sentence: ‘‘The bylaws 

23 of a Federal credit union may limit the number of consecu24 tive terms any person may serve on the board of directors 

25 of such credit union.’’. 
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1 (c) REIMBURSEMENT FOR LOST WAGES DUE TO

2 SERVICE ON CREDIT UNION BOARD NOT TREATED AS COM3 PENSATION.—Section 111(c) of the Federal Credit Union 

4 Act (12 U.S.C. 1761(c)) is amended by inserting ‘‘, includ5 ing lost wages,’’ after ‘‘the reimbursement of reasonable ex6 penses’’. 

7 SEC. 311. PROVIDING THE NATIONAL CREDIT UNION AD8 MINISTRATION WITH GREATER FLEXIBILITY 

9 IN RESPONDING TO MARKET CONDITIONS. 

10 Section 107(a)(5)(A)(vi)(I) of the Federal Credit 

11 Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated 

12 by section 303 of this title) is amended by striking ‘‘six13 month period and that prevailing interest rate levels’’ and 

14 inserting ‘‘6-month period or that prevailing interest rate 

15 levels’’. 

16 SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION 

17 REQUIREMENT OF THE CLAYTON ACT. 

18 Section 7A(c)(7) of the Clayton Act (15 U.S.C. 

19 18a(c)(7)) is amended by inserting ‘‘section 205(b)(3) of the 

20 Federal Credit Union Act (12 U.S.C. 1785(b)(3)),’’ before 

21 ‘‘or section 3’’. 

22 SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY 

23 INSTITUTIONS UNDER SECURITIES LAWS. 

24 (a) DEFINITION OF BANK UNDER THE SECURITIES

25 EXCHANGE ACT OF 1934.—Section 3(a)(6) of the Securities 
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1 Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) (as amended 

2 by section 201(a)(1) of this Act) is amended—

3 (1) by striking ‘‘this title, and (D) a receiver’’ 

4 and inserting ‘‘this title, (D) an insured credit union 

5 (as defined in section 101(7) of the Federal Credit 

6 Union Act) but only for purposes of paragraphs (4) 

7 and (5) of this subsection and only for activities oth8 erwise authorized by applicable laws to which such 

9 credit unions are subject, and (E) a receiver’’; and 

10 (2) in subparagraph (E) (as so redesignated by 

11 paragraph (1) of this subsection) by striking ‘‘(A), 

12 (B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’. 

13 (b) DEFINITION OF BANK UNDER THE INVESTMENT

14 ADVISERS ACT OF 1940.—Section 202(a)(2) of the Invest15 ment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) (as 

16 amended by section 201(b)(1) of this Act) is amended—

17 (1) by striking ‘‘this title, and (D) a receiver’’ 

18 and inserting ‘‘this title, (D) an insured credit union 

19 (as defined in section 101(7) of the Federal Credit 

20 Union Act) but only for activities otherwise author21 ized by applicable laws to which such credit unions 

22 are subject, and (E) a receiver’’; and 

23 (2) in subparagraph (E) (as so redesignated by 

24 paragraph (1) of this subsection) by striking ‘‘(A), 

25 (B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’. 
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1 (c) DEFINITION OF APPROPRIATE FEDERAL BANKING

2 AGENCY.—Section 210A(c) of the Investment Advisers Act 

3 of 1940 (15 U.S.C. 80b–10a(c)) is amended by inserting 

4 ‘‘and includes the National Credit Union Administration 

5 Board, in the case of an insured credit union (as defined 

6 in section 101(7) of the Federal Credit Union Act)’’ before 

7 the period at the end.

8 TITLE IV—DEPOSITORY 

9 INSTITUTION PROVISIONS 

10 SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCH11 ING AND MERGERS. 

12 (a) DE NOVO INTERSTATE BRANCHES OF NATIONAL

13 BANKS.—

14 (1) IN GENERAL.—Section 5155(g)(1) of the Re15 vised Statutes of the United States (12 U.S.C. 

16 36(g)(1)) is amended by striking ‘‘maintain a branch 

17 if—’’ and all that follows through the end of subpara18 graph (B) and inserting ‘‘maintain a branch.’’. 

19 (2) CLERICAL AMENDMENT.—The heading for 

20 subsection (g) of section 5155 of the Revised Statutes 

21 of the United States is amended by striking ‘‘STATE

22 ‘OPT-IN’ ELECTION TO PERMIT’’. 

23 (b) DE NOVO INTERSTATE BRANCHES OF STATE NON24 MEMBER BANKS.—
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1 (1) IN GENERAL.—Section 18(d)(4)(A) of the 

2 Federal Deposit Insurance Act (12 U.S.C. 

3 1828(d)(4)(A)) is amended by striking ‘‘maintain a 

4 branch if—’’ and all that follows through the end of 

5 clause (ii) and inserting ‘‘maintain a branch.’’. 

6 (2) CLERICAL AMENDMENT.—The heading for 

7 paragraph (4) of section 18(d) of the Federal Deposit 

8 Insurance Act is amended by striking ‘‘STATE ‘OPT9 IN’ ELECTION TO PERMIT INTERSTATE’’ and inserting 

10 ‘‘INTERSTATE’’. 

11 (c) DE NOVO INTERSTATE BRANCHES OF STATE MEM12 BER BANKS.—The 3rd undesignated paragraph of section 

13 9 of the Federal Reserve Act (12 U.S.C. 321) is amended 

14 by adding at the end the following new sentences: ‘‘A State 

15 member bank may establish and operate a de novo branch 

16 in a host State (as such terms are defined in section 18(d) 

17 of the Federal Deposit Insurance Act) on the same terms

18 and conditions and subject to the same limitations and re19 strictions as are applicable to the establishment of a de novo 

20 branch of a national bank in a host State under section 

21 5155(g) of the Revised Statutes of the United States. Such 

22 section 5155(g) shall be applied for purposes of the pre23 ceding sentence by substituting ‘Board of Governors of the 

24 Federal Reserve System’ for ‘Comptroller of the Currency’ 

25 and ‘State member bank’ for ‘national bank’.’’. 
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1 (d) INTERSTATE MERGER OF BANKS.—

2 (1) MERGER OF INSURED BANK WITH ANOTHER

3 DEPOSITORY INSTITUTION OR TRUST COMPANY.—Sec4 tion 44(a)(1) of the Federal Deposit Insurance Act 

5 (12 U.S.C. 1831u(a)(1)) is amended—

6 (A) by striking ‘‘Beginning on June 1, 

7 1997, the’’ and inserting ‘‘The’’; and 

8 (B) by striking ‘‘insured banks with dif9 ferent home States’’ and inserting ‘‘an insured 

10 bank and another insured depository institution 

11 or trust company with a different home State 

12 than the resulting insured bank’’. 

13 (2) NATIONAL BANK TRUST COMPANY MERGER

14 WITH OTHER TRUST COMPANY.—Subsection (b) of sec15 tion 4 of the National Bank Consolidation and Merg16 er Act (12 U.S.C. 215a–1(b)) is amended to read as 

17 follows: 

18 ‘‘(b) MERGER OF NATIONAL BANK TRUST COMPANY

19 WITH ANOTHER TRUST COMPANY.—A national bank that 

20 is a trust company may engage in a consolidation or merg21 er under this Act with any trust company with a different 

22 home State, under the same terms and conditions that 

23 would apply if the trust companies were located within the 

24 same State.’’. 
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1 (e) INTERSTATE FIDUCIARY ACTIVITY.—Section 18(d) 

2 of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)) 

3 is amended by adding at the end the following new para4 graph: 

5 ‘‘(5) INTERSTATE FIDUCIARY ACTIVITY.—

6 ‘‘(A) AUTHORITY OF STATE BANK SUPER7 VISOR.—The State bank supervisor of a State 

8 bank may approve an application by the State 

9 bank, when not in contravention of home State 

10 or host State law, to act as trustee, executor, ad11 ministrator, registrar of stocks and bonds, 

12 guardian of estates, assignee, receiver, committee 

13 of estates of lunatics, or in any other fiduciary 

14 capacity in a host State in which State banks or 

15 other corporations which come into competition 

16 with national banks are permitted to act under 

17 the laws of such host State. 

18 ‘‘(B) NONCONTRAVENTION OF HOST STATE

19 LAW.—Whenever the laws of a host State author20 ize or permit the exercise of any or all of the 

21 foregoing powers by State banks or other cor22 porations which compete with national banks, 

23 the granting to and the exercise of such powers 

24 by a State bank as provided in this paragraph 
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1 shall not be deemed to be in contravention of host 

2 State law within the meaning of this paragraph. 

3 ‘‘(C) STATE BANK INCLUDES TRUST COMPA4 NIES.—For purposes of this paragraph, the term 

5 ‘State bank’ includes any State-chartered trust 

6 company (as defined in section 44(g)). 

7 ‘‘(D) OTHER DEFINITIONS.—For purposes 

8 of this paragraph, the term ‘home State’ and 

9 ‘host State’ have the meanings given such terms 

10 in section 44.’’. 

11 (f) TECHNICAL AND CONFORMING AMENDMENTS.—

12 (1) Section 44 of the Federal Deposit Insurance 

13 Act (12 U.S.C. 1831u) is amended—

14 (A) in subsection (a)—

15 (i) by striking paragraph (4) and in16 serting the following new paragraph: 

17 ‘‘(4) TREATMENT OF BRANCHES IN CONNECTION

18 WITH CERTAIN INTERSTATE MERGER TRANS19 ACTIONS.—In the case of an interstate merger trans20 action which involves the acquisition of a branch of 

21 an insured depository institution or trust company 

22 without the acquisition of the insured depository in23 stitution or trust company, the branch shall be treat24 ed, for purposes of this section, as an insured deposi25 tory institution or trust company the home State of 
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1 which is the State in which the branch is located.’’; 

2 and 

3 (ii) by striking paragraphs (5) and 

4 (6); 

5 (B) in subsection (b)—

6 (i) by striking ‘‘bank’’ each place such 

7 term appears in paragraph (2)(B)(i) and 

8 inserting ‘‘insured depository institution’’; 

9 (ii) by striking ‘‘banks’’ where such 

10 term appears in paragraph (2)(E) and in11 serting ‘‘insured depository institutions or 

12 trust companies’’; 

13 (iii) by striking ‘‘bank affiliate’’ each 

14 place such term appears in that portion of 

15 paragraph (3) that precedes subparagraph 

16 (A) and inserting ‘‘insured depository insti17 tution affiliate’’; 

18 (iv) by striking ‘‘any bank’’ where such 

19 term appears in paragraph (3)(B) and in20 serting ‘‘any insured depository institu21 tion’’; 

22 (v) by striking ‘‘bank’’ where such term 

23 appears in paragraph (4)(A) and inserting 

24 ‘‘insured depository institution and trust 

25 company’’; and 
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1 (vi) by striking ‘‘all banks’’ where such 

2 term appears in paragraph (5) and insert3 ing ‘‘all insured depository institutions and 

4 trust companies’’; 

5 (C) in subsection (d)(1), by striking ‘‘any 

6 bank’’ and inserting ‘‘any insured depository in7 stitution or trust company’’; 

8 (D) in subsection (e)—

9 (i) by striking ‘‘1 or more banks’’ and 

10 inserting ‘‘1 or more insured depository in11 stitutions’’; and 

12 (ii) by striking ‘‘paragraph (2), (4), or 

13 (5)’’ and inserting ‘‘paragraph (2)’’; 

14 (E) by striking clauses (i) and (ii) of sub15 section (g)(4)(A) and inserting the following new 

16 clauses:

17 ‘‘(i) with respect to a national bank or 

18 Federal savings association, the State in 

19 which the main office of the bank or savings 

20 association is located; and 

21 ‘‘(ii) with respect to a State bank, 

22 State savings association, or State-chartered 

23 trust company, the State by which the bank, 

24 savings association, or trust company is 

25 chartered; and’’; 
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1 (F) by striking paragraph (5) of subsection 

2 (g) and inserting the following new paragraph: 

3 ‘‘(5) HOST STATE.—The term ‘host State’ 

4 means—

5 ‘‘(A) with respect to a bank, a State, other 

6 than the home State of the bank, in which the 

7 bank maintains, or seeks to establish and main8 tain, a branch; and 

9 ‘‘(B) with respect to a trust company and 

10 solely for purposes of section 18(d)(5), a State, 

11 other than the home State of the trust company, 

12 in which the trust company acts, or seeks to act, 

13 in 1 or more fiduciary capacities.’’; 

14 (G) in subsection (g)(10), by striking ‘‘sec15 tion 18(c)(2)’’ and inserting ‘‘paragraph (1) or 

16 (2) of section 18(c), as appropriate,’’; and 

17 (H) in subsection (g), by adding at the end 

18 the following new paragraph: 

19 ‘‘(12) TRUST COMPANY.—The term ‘trust com20 pany’ means—

21 ‘‘(A) any national bank; 

22 ‘‘(B) any savings association; and 

23 ‘‘(C) any bank, banking association, trust 

24 company, savings bank, or other banking institu-
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1 tion which is incorporated under the laws of any 

2 State, 

3 that is authorized to act in 1 or more fiduciary ca4 pacities but is not engaged in the business of receiving 

5 deposits other than trust funds (as defined in section 

6 3(p)).’’. 

7 (2) Section 3(d) of the Bank Holding Company 

8 Act of 1956 (12 U.S.C. 1842(d)) is amended—

9 (A) in paragraph (1)—

10 (i) by striking subparagraphs (B) and 

11 (C); and 

12 (ii) by redesignating subparagraph (D) 

13 as subparagraph (B); and 

14 (B) in paragraph (5), by striking ‘‘subpara15 graph (B) or (D)’’ and inserting ‘‘subparagraph 

16 (B)’’. 

17 (3) Subsection (c) of section 4 of the National 

18 Bank Consolidation and Merger Act (12 U.S.C. 215a–

19 1(c)) is amended to read as follows: 

20 ‘‘(c) DEFINITIONS.—For purposes of this section, the 

21 terms ‘home State’, ‘out-of-State bank’, and ‘trust company’ 

22 each have the same meaning as in section 44(g) of the Fed23 eral Deposit Insurance Act.’’. 

24 (g) CLERICAL AMENDMENTS.—
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1 (1) The heading for section 44(b)(2)(E) of the 

2 Federal Deposit Insurance Act (12 U.S.C. 

3 1831u(b)(2)(E)) is amended by striking ‘‘BANKS’’ and 

4 inserting ‘‘INSURED DEPOSITORY INSTITUTIONS AND

5 TRUST COMPANIES’’. 

6 (2) The heading for section 44(e) of the Federal 

7 Deposit Insurance Act (12 U.S.C. 1831u(e)) is 

8 amended by striking ‘‘BANKS’’ and inserting ‘‘IN9 SURED DEPOSITORY INSTITUTIONS’’. 

10 SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW 

11 OF APPOINTMENT OF A RECEIVER FOR DE12 POSITORY INSTITUTIONS. 

13 (a) NATIONAL BANKS.—Section 2 of the National 

14 Bank Receivership Act (12 U.S.C. 191) is amended—

15 (1) by striking ‘‘SECTION 2. The Comptroller of 

16 the Currency’’ and inserting the following: 

17 ‘‘SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL 

18 BANK. 

19 ‘‘(a) IN GENERAL.—The Comptroller of the Currency’’; 

20 and 

21 (2) by adding at the end the following new sub22 section: 

23 ‘‘(b) JUDICIAL REVIEW.—If the Comptroller of the 

24 Currency appoints a receiver under subsection (a), the na25 tional bank may, within 30 days thereafter, bring an action 
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1 in the United States district court for the judicial district 

2 in which the home office of such bank is located, or in the 

3 United States District Court for the District of Columbia, 

4 for an order requiring the Comptroller of the Currency to 

5 remove the receiver, and the court shall, upon the merits, 

6 dismiss such action or direct the Comptroller of the Cur7 rency to remove the receiver.’’. 

8 (b) INSURED DEPOSITORY INSTITUTIONS.—Section 

9 11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C. 

10 1821(c)(7)) is amended to read as follows: 

11 ‘‘(7) JUDICIAL REVIEW.—If the Corporation is 

12 appointed (including the appointment of the Corpora13 tion as receiver by the Board of Directors) as conser14 vator or receiver of a depository institution under 

15 paragraph (4), (9), or (10), the depository institution 

16 may, within 30 days thereafter, bring an action in 

17 the United States district court for the judicial dis18 trict in which the home office of such depository insti19 tution is located, or in the United States District 

20 Court for the District of Columbia, for an order re21 quiring the Corporation to be removed as the conser22 vator or receiver (regardless of how such appointment 

23 was made), and the court shall, upon the merits, dis24 miss such action or direct the Corporation to be re25 moved as the conservator or receiver.’’. 
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1 (c) EXPANSION OF PERIOD FOR CHALLENGING THE

2 APPOINTMENT OF A LIQUIDATING AGENT.—Subparagraph 

3 (B) of section 207(a)(1) of the Federal Credit Union Act 

4 (12 U.S.C. 1787(a)(1)) is amended by striking ‘‘10 days’’ 

5 and inserting ‘‘30 days’’. 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 subsections (a), (b), and (c) shall apply with respect to con8 servators, receivers, or liquidating agents appointed on or 

9 after the date of the enactment of this Act. 

10 SEC. 403. REPORTING REQUIREMENTS RELATING TO IN11 SIDER LENDING. 

12 (a) REPORTING REQUIREMENTS REGARDING LOANS

13 TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section 

14 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amend15 ed—

16 (1) by striking paragraphs (6) and (9); and

17 (2) by redesignating paragraphs (7), (8), and 

18 (10) as paragraphs (6), (7), and (8), respectively. 

19 (b) REPORTING REQUIREMENTS REGARDING LOANS

20 FROM CORRESPONDENT BANKS TO EXECUTIVE OFFICERS

21 AND SHAREHOLDERS OF INSURED BANKS.—Section 

22 106(b)(2) of the Bank Holding Company Act Amendments 

23 of 1970 (12 U.S.C. 1972(2)) is amended—

24 (1) by striking subparagraph (G); and 
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1 (2) by redesignating subparagraphs (H) and (I) 

2 as subparagraphs (G) and (H), respectively.

3 SEC. 404. AMENDMENT TO PROVIDE AN INFLATION ADJUST4 MENT FOR THE SMALL DEPOSITORY INSTITU5 TION EXCEPTION UNDER THE DEPOSITORY 

6 INSTITUTION MANAGEMENT INTERLOCKS 

7 ACT. 

8 Section 203(1) of the Depository Institution Manage9 ment Interlocks Act (12 U.S.C. 3202(1)) is amended by 

10 striking ‘‘$20,000,000’’ and inserting ‘‘$100,000,000’’. 

11 SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF IN12 SURED DEPOSITORY INSTITUTIONS. 

13 (a) CLARIFICATION RELATING TO THE ENFORCE14 ABILITY OF AGREEMENTS AND CONDITIONS.—The Federal 

15 Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended 

16 by adding at the end the following new section: 

17 ‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS. 

18 ‘‘(a) IN GENERAL.—Notwithstanding clause (i) or (ii) 

19 of section 8(b)(6)(A) or section 38(e)(2)(E), an appropriate 

20 Federal banking agency may enforce, under section 8, the 

21 terms of—

22 ‘‘(1) any condition imposed in writing by the 

23 agency on a depository institution or an institution24 affiliated party (including a bank holding company) 

25 in connection with any action on any application, 
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1 notice, or other request concerning a depository insti2 tution; or 

3 ‘‘(2) any written agreement entered into between 

4 the agency and an institution-affiliated party (in5 cluding a bank holding company). 

6 ‘‘(b) RECEIVERSHIPS AND CONSERVATORSHIPS.—After 

7 the appointment of the Corporation as the receiver or con8 servator for any insured depository institution, the Cor9 poration may enforce any condition or agreement described 

10 in paragraph (1) or (2) of subsection (a) involving such 

11 institution or any institution-affiliated party (including a 

12 bank holding company), through an action brought in an 

13 appropriate United States district court.’’. 

14 (b) PROTECTION OF CAPITAL OF INSURED DEPOSI15 TORY INSTITUTIONS.—Paragraph (1) of section 18(u) of the 

16 Federal Deposit Insurance Act (12 U.S.C. 1828(u)) is 

17 amended by striking subparagraph (B) and by redesig18 nating subparagraph (C) as subparagraph (B). 

19 SEC. 406. INVESTMENTS BY INSURED SAVINGS ASSOCIA20 TIONS IN BANK SERVICE COMPANIES AU21 THORIZED. 

22 (a) IN GENERAL.—Sections 2 and 3 of the Bank Serv23 ice Company Act (12 U.S.C. 1862, 1863) are each amended 

24 by striking ‘‘insured bank’’ each place such term appears 

25 and inserting ‘‘insured depository institution’’. 
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1 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

2 (1) Section 1(b)(4) of the Bank Service Company 

3 Act (12 U.S.C. 1861(b)(4)) is amended—

4 (A) by inserting ‘‘, except when such term 

5 appears in connection with the term ‘insured de6 pository institution’,’’ after ‘‘means’’; and 

7 (B) by striking ‘‘Federal Home Loan Bank 

8 Board’’ and inserting ‘‘Director of the Office of 

9 Thrift Supervision’’. 

10 (2) Section 1(b) of the Bank Service Company 

11 Act (12 U.S.C. 1861(b)) is amended—

12 (A) by striking paragraph (5) and inserting 

13 the following new paragraph: 

14 ‘‘(5) INSURED DEPOSITORY INSTITUTION.—The 

15 term ‘insured depository institution’ has the meaning 

16 given the term in section 3(c) of the Federal Deposit 

17 Insurance Act;’’; 

18 (B) by striking ‘‘and’’ at the end of para19 graph (7); 

20 (C) by striking the period at the end of 

21 paragraph (8) and inserting ‘‘; and’’; and 

22 (D) by adding at the end the following new 

23 paragraph: 

24 ‘‘(9) the terms ‘State depository institution’, 

25 ‘Federal depository institution’, ‘State savings asso-
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1 ciation’ and ‘Federal savings association’ have the 

2 meanings given the terms in section 3 of the Federal 

3 Deposit Insurance Act.’’. 

4 (3) The 1st sentence of section 5(c)(4)(B) of the 

5 Home Owners’ Loan Act (12 U.S.C. 1464(c)(4)(B)) is 

6 amended by striking ‘‘by savings associations of such 

7 State and by Federal associations’’ and inserting ‘‘by 

8 State and Federal depository institutions’’. 

9 (4) Subparagraph (A)(ii) and subparagraph 

10 (B)(ii) of section 1(b)(2) of the Bank Service Com11 pany Act (12 U.S.C. 1861(b)(2)) are each amended 

12 by striking ‘‘insured banks’’ and inserting ‘‘insured 

13 depository institutions’’. 

14 (5) Section 1(b)(8) of the Bank Service Company 

15 Act (12 U.S.C. 1861(b)(8)) is further amended—

16 (A) by striking ‘‘insured bank’’ and insert17 ing ‘‘insured depository institution’’

18 (B) by striking ‘‘insured banks’’ each place 

19 such term appears and inserting ‘‘insured depos20 itory institutions’’; and 

21 (C) by striking ‘‘the bank’s’’ and inserting 

22 ‘‘the depository institution’s’’. 

23 (6) Section 2 of the Bank Service Company Act 

24 (12 U.S.C. 1862) is amended by inserting ‘‘or savings 

25 associations, other than the limitation on the amount 
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1 of investment by a Federal savings association con2 tained in section 5(c)(4)(B) of the Home Owners’ 

3 Loan Act’’ after ‘‘relating to banks’’. 

4 (7) Section 4(c) of the Bank Service Company 

5 Act (12 U.S.C. 1864(c)) is amended by inserting ‘‘or 

6 State savings association’’ after ‘‘State bank’’ each 

7 place such term appears. 

8 (8) Section 4(d) of the Bank Service Company 

9 Act (12 U.S.C. 1864(d)) is amended by inserting ‘‘or 

10 Federal savings association’’ after ‘‘national bank’’ 

11 each place such term appears. 

12 (9) Section 4(e) of the Bank Service Company 

13 Act (12 U.S.C. 1864(e)) is amended to read as fol14 lows: 

15 ‘‘(e) A bank service company may perform—

16 ‘‘(1) only those services that each depository in17 stitution shareholder or member is otherwise author18 ized to perform under any applicable Federal or State 

19 law; and 

20 ‘‘(2) such services only at locations in a State in 

21 which each such shareholder or member is authorized 

22 to perform such services.’’.

23 (10) Section 4(f) of the Bank Service Company 

24 Act (12 U.S.C. 1864(f)) is amended by inserting ‘‘or 

25 savings associations’’ after ‘‘location of banks’’. 
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1 (11) Section 5 of the Bank Service Company Act 

2 (12 U.S.C. 1865) is amended—

3 (A) in subsection (a)—

4 (i) by striking ‘‘insured bank’’ and in5 serting ‘‘insured depository institution’’; 

6 and 

7 (ii) by striking ‘‘bank’s’’ and inserting 

8 ‘‘institution’s’’. 

9 (B) in subsection (b), by striking ‘‘insured 

10 bank’’ and inserting ‘‘insured depository institu11 tion’’; and 

12 (C) in subsection (c)—

13 (i) by striking ‘‘the bank or banks’’ 

14 and inserting ‘‘any depository institution’’; 

15 and 

16 (ii) by striking ‘‘capability of the 

17 bank’’ and inserting ‘‘capability of the de18 pository institution’’. 

19 (12) Section 7 of the Bank Service Company Act 

20 (12 U.S.C. 1867) is amended—

21 (A) in subsection (b), by striking ‘‘insured 

22 bank’’ and inserting ‘‘insured depository institu23 tion’’; and 

24 (B) in subsection (c)—
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1 (i) by striking ‘‘a bank’’ each place 

2 such term appears and inserting ‘‘a deposi3 tory institution’’; and 

4 (ii) by striking ‘‘the bank’’ each place 

5 such term appears and inserting ‘‘the depos6 itory institution’’. 

7 SEC. 407. CROSS GUARANTEE AUTHORITY. 

8 Subparagraph (A) of section 5(e)(9) of the Federal De9 posit Insurance Act (12 U.S.C. 1815(e)(9)(A)) is amended 

10 to read as follows: 

11 ‘‘(A) such institutions are controlled by the 

12 same company; or’’. 

13 SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK 

14 HOLDING COMPANIES. 

15 Subsection (k) of section 18 of the Federal Deposit In16 surance Act (12 U.S.C. 1828(k)) is amended—

17 (1) in paragraph (2)(A), by striking ‘‘or deposi18 tory institution holding company’’ and inserting ‘‘or 

19 covered company’’; 

20 (2) by striking subparagraph (B) of paragraph 

21 (2) and inserting the following new subparagraph: 

22 ‘‘(B) Whether there is a reasonable basis to 

23 believe that the institution-affiliated party is 

24 substantially responsible for—
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1 ‘‘(i) the insolvency of the depository in2 stitution or covered company; 

3 ‘‘(ii) the appointment of a conservator 

4 or receiver for the depository institution; or 

5 ‘‘(iii) the depository institution’s trou6 bled condition (as defined in the regulations 

7 prescribed pursuant to section 32(f)).’’; 

8 (3) in paragraph (2)(F), by striking ‘‘depository 

9 institution holding company’’ and inserting ‘‘covered 

10 company,’’; 

11 (4) in paragraph (3) in the matter preceding 

12 subparagraph (A), by striking ‘‘depository institution 

13 holding company’’ and inserting ‘‘covered company’’; 

14 (5) in paragraph (3)(A), by striking ‘‘holding 

15 company’’ and inserting ‘‘covered company’’; 

16 (6) in paragraph (4)(A)—

17 (A) by striking ‘‘depository institution hold18 ing company’’ each place such term appears and 

19 inserting ‘‘covered company’’; and 

20 (B) by striking ‘‘holding company’’ each 

21 place such term appears (other than in connec22 tion with the term referred to in subparagraph 

23 (A)) and inserting ‘‘covered company’’; 
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1 (7) in paragraph (5)(A), by striking ‘‘depository 

2 institution holding company’’ and inserting ‘‘covered 

3 company’’; 

4 (8) in paragraph (5), by adding at the end the 

5 following new subparagraph: 

6 ‘‘(D) COVERED COMPANY.—The term ‘cov7 ered company’ means any depository institution 

8 holding company (including any company re9 quired to file a report under section 4(f)(6) of the 

10 Bank Holding Company Act of 1956), or any 

11 other company that controls an insured deposi12 tory institution.’’; and 

13 (9) in paragraph (6)—

14 (A) by striking ‘‘depository institution hold15 ing company’’ and inserting ‘‘covered com16 pany,’’; and 

17 (B) by striking ‘‘or holding company’’ and 

18 inserting ‘‘or covered company’’. 

19 SEC. 409. AMENDMENTS RELATING TO CHANGE IN BANK 

20 CONTROL. 

21 Section 7(j) of the Federal Deposit Insurance Act (12 

22 U.S.C. 1817(j)) is amended—

23 (1) in paragraph (1)(D)—

24 (A) by striking ‘‘is needed to investigate’’ 

25 and inserting ‘‘is needed—
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1 ‘‘(i) to investigate’’; 

2 (B) by striking ‘‘United States Code.’’ and 

3 inserting ‘‘United States Code; or’’; and 

4 (C) by adding at the end the following new 

5 clause: 

6 ‘‘(ii) to analyze the safety and sound7 ness of any plans or proposals described in 

8 paragraph (6)(E) or the future prospects of 

9 the institution.’’; and 

10 (2) in paragraph (7)(C), by striking ‘‘the finan11 cial condition of any acquiring person’’ and inserting 

12 ‘‘either the financial condition of any acquiring per13 son or the future prospects of the institution’’.

14 TITLE V—DEPOSITORY INSTITU15 TION AFFILIATES PROVI16 SIONS 

17 SEC. 501. CLARIFICATION OF CROSS MARKETING PROVI18 SION. 

19 Section 4(n)(5) of the Bank Holding Company Act of 

20 1956 (12 U.S.C. 1843(n)(5)) is amended—

21 (1) in subparagraph (B), by striking ‘‘subsection 

22 (k)(4)(I)’’ and inserting ‘‘subparagraph (H) or (I) of 

23 subsection (k)(4)’’; and 

24 (2) by adding at the end the following new sub25 paragraph: 
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1 ‘‘(C) THRESHOLD OF CONTROL.—Subpara2 graph (A) shall not apply with respect to a com3 pany described or referred to in clause (i) or (ii) 

4 of such subparagraph if the financial holding 

5 company does not own or control 25 percent or 

6 more of the total equity or any class of voting se7 curities of such company.’’. 

8 SEC. 502. AMENDMENT TO PROVIDE THE FEDERAL RE9 SERVE BOARD WITH DISCRETION CON10 CERNING THE IMPUTATION OF CONTROL OF 

11 SHARES OF A COMPANY BY TRUSTEES. 

12 Section 2(g)(2) of the Bank Holding Company Act of 

13 1956 (12 U.S.C. 1841(g)(2)) is amended by inserting ‘‘, un14 less the Board determines that such treatment is not appro15 priate in light of the facts and circumstances of the case 

16 and the purposes of this Act’’ before the period at the end. 

17 SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON THRIFT 

18 SERVICE COMPANIES. 

19 (a) IN GENERAL.—The 1st sentence of section 

20 5(c)(4)(B) of the Home Owners’ Loan Act (12 U.S.C. 

21 1464(c)(4)(B)) (as amended by section 406(b)(3) of this 

22 Act) is amended—

23 (1) by striking ‘‘corporation organized’’ and all 

24 that follows through ‘‘is available for purchase’’ and 
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1 inserting ‘‘company, if the entire capital of the com2 pany is available for purchase’’; and 

3 (2) by striking ‘‘having their home offices in 

4 such State’’. 

5 (b) TECHNICAL CORRECTIONS.—

6 (1) The heading for subparagraph (B) of section 

7 5(c)(4) of the Home Owners’ Loan Act (12 U.S.C. 

8 1464(c)(4)(B)) is amended by striking ‘‘CORPORA9 TIONS’’ and inserting ‘‘COMPANIES’’. 

10 (2) The 2nd sentence of section 5(n)(1) of the 

11 Home Owners’ Loan Act (12 U.S.C. 1464(n)(1)) is 

12 amended by striking ‘‘service corporations’’ and in13 serting ‘‘service companies’’. 

14 (3) Section 5(q)(1) of the Home Owners’ Loan 

15 Act (12 U.S.C. 1464(q)(1)) is amended by striking 

16 ‘‘service corporation’’ each place such term appears in 

17 subparagraphs (A), (B), and (C) and inserting ‘‘serv18 ice company’’. 

19 (4) Section 10(m)(4)(C)(iii)(II) of the Home 

20 Owners’ Loan Act (12 U.S.C. 

21 1467a(m)(4)(C)(iii)(II)) is amended by striking 

22 ‘‘service corporation’’ each place such term appears 

23 and inserting ‘‘service company’’. 
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1 SEC. 504. CLARIFICATION OF SCOPE OF APPLICABLE RATE 

2 PROVISION. 

3 Section 44(f) of the Federal Deposit Insurance Act (12 

4 U.S.C. 1831u(f)) is amended by adding at the end the fol5 lowing new paragraphs: 

6 ‘‘(3) OTHER LENDERS.—In the case of any other 

7 lender doing business in the State described in para8 graph (1), the maximum interest rate or amount of 

9 interest, discount points, finance charges, or other 

10 similar charges that may be charged, taken, received, 

11 or reserved from time to time in any loan, discount, 

12 or credit sale made, or upon any note, bill of ex13 change, financing transaction, or other evidence of 

14 debt issued to or acquired by any other lender shall 

15 be equal to not more than the greater of the rates de16 scribed in subparagraph (A) or (B) of paragraph (1). 

17 ‘‘(4) OTHER LENDER DEFINED.—For purposes of 

18 paragraph (3), the term ‘other lender’ means any per19 son engaged in the business of selling or financing the 

20 sale of personal property (and any services incidental 

21 to the sale of personal property) in such State, except 

22 that, with regard to any person or entity described in 

23 such paragraph, such term does not include—

24 ‘‘(A) an insured depository institution; or 
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1 ‘‘(B) any person or entity engaged in the 

2 business of providing a short-term cash advance 

3 to any consumer in exchange for—

4 ‘‘(i) a consumer’s personal check or 

5 share draft, in the amount of the advance 

6 plus a fee, where presentment or negotiation 

7 of such check or share draft is deferred by 

8 agreement of the parties until a designated 

9 future date; or 

10 ‘‘(ii) a consumer authorization to debit 

11 the consumer’s transaction account, in the 

12 amount of the advance plus a fee, where 

13 such account will be debited on or after a 

14 designated future date.’’. 

15 TITLE VI—BANKING AGENCY 

16 PROVISIONS 

17 SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER 

18 TO ALLOCATE EXAMINER RESOURCES. 

19 Section 10(d) of the Federal Deposit Insurance Act (12 

20 U.S.C. 1820(d)) is amended—

21 (1) by redesignating paragraphs (5), (6), (7), 

22 (8), (9), and (10) as paragraphs (6), (7), (8), (9), 

23 (10), and (11), respectively; 

24 (2) by inserting after paragraph (4), the fol25 lowing new paragraph: 
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1 ‘‘(5) WAIVER OF SCHEDULE WHEN NECESSARY

2 TO ACHIEVE SAFE AND SOUND ALLOCATION OF EXAM3 INER RESOURCES.—Notwithstanding paragraphs (1), 

4 (2), (3), and (4), an appropriate Federal banking 

5 agency may make adjustments in the examination 

6 cycle for an insured depository institution if nec7 essary to allocate available resources of examiners in 

8 a manner that provides for the safety and soundness 

9 of, and the effective examination and supervision of, 

10 insured depository institutions.’’; and 

11 (3) in paragraphs (8) and (9), as so redesig12 nated, by striking ‘‘paragraph (6)’’ and inserting 

13 ‘‘paragraph (7)’’.

14 SEC. 602. INTERAGENCY DATA SHARING. 

15 (a) FEDERAL BANKING AGENCIES.—Section 7(a)(2) of 

16 the Federal Deposit Insurance Act (12 U.S.C. 1817(a)(2)) 

17 is amended by adding at the end the following new subpara18 graph: 

19 ‘‘(C) DATA SHARING WITH OTHER AGEN20 CIES AND PERSONS.—In addition to reports of 

21 examination, reports of condition, and other re22 ports required to be regularly provided to the 

23 Corporation (with respect to all insured deposi24 tory institutions, including a depository institu25 tion for which the Corporation has been ap-
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1 pointed conservator or receiver) or an appro2 priate State bank supervisor (with respect to a 

3 State depository institution) under subpara4 graph (A) or (B), a Federal banking agency 

5 may, in the agency’s discretion, furnish any re6 port of examination or other confidential super7 visory information concerning any depository 

8 institution or other entity examined by such 

9 agency under authority of any Federal law, to—

10 ‘‘(i) any other Federal or State agency 

11 or authority with supervisory or regulatory 

12 authority over the depository institution or 

13 other entity; 

14 ‘‘(ii) any officer, director, or receiver of 

15 such depository institution or entity; and 

16 ‘‘(iii) any other person the Federal 

17 banking agency determines to be appro18 priate.’’. 

19 (b) NATIONAL CREDIT UNION ADMINISTRATION.—Sec20 tion 202(a) of the Federal Credit Union Act (12 U.S.C. 

21 1782(a)) is amended by adding at the end the following 

22 new paragraph: 

23 ‘‘(8) DATA SHARING WITH OTHER AGENCIES AND

24 PERSONS.—In addition to reports of examination, re25 ports of condition, and other reports required to be 
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1 regularly provided to the Board (with respect to all 

2 insured credit unions, including a credit union for 

3 which the Corporation has been appointed conservator 

4 or liquidating agent) or an appropriate State com5 mission, board, or authority having supervision of a 

6 State-chartered credit union, the Board may, in the 

7 Board’s discretion, furnish any report of examination 

8 or other confidential supervisory information con9 cerning any credit union or other entity examined by 

10 the Board under authority of any Federal law, to—

11 ‘‘(A) any other Federal or State agency or 

12 authority with supervisory or regulatory author13 ity over the credit union or other entity; 

14 ‘‘(B) any officer, director, or receiver of 

15 such credit union or entity; and 

16 ‘‘(C) any other institution-affiliated party 

17 of such credit union or entity the Board deter18 mines to be appropriate.’’. 

19 SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION 

20 BY CONVICTED INDIVIDUAL. 

21 Section 19 of the Federal Deposit Insurance Act (12 

22 U.S.C. 1829) is amended by adding at the end the following 

23 new subsection: 

24 ‘‘(c) NONINSURED BANKS.—Subsections (a) and (b) 

25 shall apply to a noninsured national bank and a non-
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1 insured State member bank, and any agency or noninsured 

2 branch (as such terms are defined in section 1(b) of the 

3 International Banking Act of 1978) of a foreign bank as 

4 if such bank, branch, or agency were an insured depository 

5 institution, except such subsections shall be applied for pur6 poses of this subsection by substituting the agency deter7 mined under the following paragraphs for ‘Corporation’ 

8 each place such term appears in such subsections: 

9 ‘‘(1) The Comptroller of the Currency, in the case 

10 of a noninsured national bank or any Federal agency 

11 or noninsured Federal branch of a foreign bank. 

12 ‘‘(2) The Board of Governors of the Federal Re13 serve System, in the case of a noninsured State mem14 ber bank or any State agency or noninsured State 

15 branch of a foreign bank.’’. 

16 SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF 

17 OLD RECORDS OF A DEPOSITORY INSTITU18 TION BY THE FDIC AFTER THE APPOINTMENT 

19 OF THE FDIC AS RECEIVER. 

20 Section 11(d)(15)(D) of the Federal Deposit Insurance 

21 Act (12 U.S.C. 1821(d)(15)(D)) is amended—

22 (1) by striking ‘‘RECORDKEEPING REQUIRE23 MENT.—After the end of the 6-year period’’ and in24 serting ‘‘RECORDKEEPING REQUIREMENT.—
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1 ‘‘(i) IN GENERAL.—Except as provided 

2 in clause (ii), after the end of the 6-year pe3 riod’’; and 

4 (2) by adding at the end the following new 

5 clause: 

6 ‘‘(ii) OLD RECORDS.—In the case of 

7 records of an insured depository institution 

8 which are at least 10 years old as of the 

9 date the Corporation is appointed as the re10 ceiver of such depository institution, the 

11 Corporation may destroy such records in 

12 accordance with clause (i) any time after 

13 such appointment is final without regard to

14 the 6-year period of limitation contained in 

15 such clause.’’. 

16 SEC. 605. MODERNIZATION OF RECORDKEEPING REQUIRE17 MENT. 

18 Subsection (f) of section 10 of the Federal Deposit In19 surance Act (12 U.S.C. 1820(f)) is amended to read as fol20 lows: 

21 ‘‘(f) PRESERVATION OF AGENCY RECORDS.—

22 ‘‘(1) IN GENERAL.—A Federal banking agency 

23 may cause any and all records, papers, or documents 

24 kept by the agency or in the possession or custody of 

25 the agency to be—
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1 ‘‘(A) photographed or microphotographed or 

2 otherwise reproduced upon film; or 

3 ‘‘(B) preserved in any electronic medium or 

4 format which is capable of—

5 ‘‘(i) being read or scanned by com6 puter; and 

7 ‘‘(ii) being reproduced from such elec8 tronic medium or format by printing or 

9 any other form of reproduction of electroni10 cally stored data. 

11 ‘‘(2) TREATMENT AS ORIGINAL RECORDS.—Any 

12 photographs, microphotographs, or photographic film 

13 or copies thereof described in paragraph (1)(A) or re14 production of electronically stored data described in 

15 paragraph (1)(B) shall be deemed to be an original 

16 record for all purposes, including introduction in evi17 dence in all State and Federal courts or administra18 tive agencies and shall be admissible to prove any act, 

19 transaction, occurrence, or event therein recorded. 

20 ‘‘(3) AUTHORITY OF THE FEDERAL BANKING

21 AGENCIES.—Any photographs, microphotographs, or 

22 photographic film or copies thereof described in para23 graph (1)(A) or reproduction of electronically stored 

24 data described in paragraph (1)(B) shall be preserved 

25 in such manner as the Federal banking agency shall 
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1 prescribe and the original records, papers, or docu2 ments may be destroyed or otherwise disposed of as 

3 the Federal banking agency may direct.’’.

4 SEC. 606. CLARIFICATION OF EXTENT OF SUSPENSION, RE5 MOVAL, AND PROHIBITION AUTHORITY OF 

6 FEDERAL BANKING AGENCIES IN CASES OF 

7 CERTAIN CRIMES BY INSTITUTION-AFFILI8 ATED PARTIES. 

9 (a) INSURED DEPOSITORY INSTITUTION.—

10 (1) IN GENERAL.—Section 8(g)(1) of the Federal 

11 Deposit Insurance Act (12 U.S.C. 1818(g)(1)) is 

12 amended—

13 (A) in subparagraph (A), by striking ‘‘the 

14 depository’’ each place such term appears and 

15 inserting ‘‘any depository’’; 

16 (B) in subparagraph (B)(i), by inserting 

17 ‘‘of which the subject of the order is an institu18 tion-affiliated party’’ before the period at the 

19 end; 

20 (C) in subparagraph (C), by striking ‘‘the 

21 depository’’ each place such term appears and 

22 inserting ‘‘any depository’’; 

23 (D) in subparagraph (D)(i), by inserting 

24 ‘‘of which the subject of the order is an institu-
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1 tion-affiliated party’’ after ‘‘upon the depository 

2 institution’’; and 

3 (E) by adding at the end the following new 

4 subparagraph: 

5 ‘‘(E) CONTINUATION OF AUTHORITY.—A 

6 Federal banking agency may issue an order 

7 under this paragraph with respect to an indi8 vidual who is an institution-affiliated party at 

9 a depository institution at the time of an offense 

10 described in subparagraph (A) without regard 

11 to—

12 ‘‘(i) whether such individual is an in13 stitution-affiliated party at any depository 

14 institution at the time the order is consid15 ered or issued by the agency; or 

16 ‘‘(ii) whether the depository institution 

17 at which the individual was an institution18 affiliated party at the time of the offense re19 mains in existence at the time the order is 

20 considered or issued by the agency.’’. 

21 (2) CLERICAL AMENDMENT.—Section 8(g) of the 

22 Federal Deposit Insurance Act (12 U.S.C. 1818(g)) is 

23 amended by striking ‘‘(g)’’ and inserting the following 

24 new subsection heading: 
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1 ‘‘(g) SUSPENSION, REMOVAL, AND PROHIBITION FROM

2 PARTICIPATION ORDERS IN THE CASE OF CERTAIN CRIMI3 NAL OFFENSES.—’’. 

4 (b) INSURED CREDIT UNIONS.—

5 (1) IN GENERAL.—Section 206(i)(1) of the Fed6 eral Credit Union Act (12 U.S.C. 1786(i)(1)) is 

7 amended—

8 (A) in subparagraph (A), by striking ‘‘the 

9 credit union’’ each place such term appears and 

10 inserting ‘‘any credit union’’; 

11 (B) in subparagraph (B)(i), by inserting 

12 ‘‘of which the subject of the order is, or most re13 cently was, an institution-affiliated party’’ be14 fore the period at the end; 

15 (C) in subparagraph (C), by striking ‘‘the 

16 credit union’’ each place such term appears and 

17 inserting ‘‘any credit union’’; 

18 (D) in subparagraph (D)(i), by striking 

19 ‘‘upon such credit union’’ and inserting ‘‘upon 

20 the credit union of which the subject of the order 

21 is, or most recently was, an institution-affiliated 

22 party’’; and 

23 (E) by adding at the end the following new 

24 subparagraph: 
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1 ‘‘(E) CONTINUATION OF AUTHORITY.—The 

2 Board may issue an order under this paragraph 

3 with respect to an individual who is an institu4 tion-affiliated party at a credit union at the 

5 time of an offense described in subparagraph (A) 

6 without regard to—

7 ‘‘(i) whether such individual is an in8 stitution-affiliated party at any credit 

9 union at the time the order is considered or 

10 issued by the Board; or 

11 ‘‘(ii) whether the credit union at which 

12 the individual was an institution-affiliated 

13 party at the time of the offense remains in 

14 existence at the time the order is considered 

15 or issued by the Board.’’.

16 (2) CLERICAL AMENDMENT.—Section 206(i) of 

17 the Federal Credit Union Act (12 U.S.C. 1786(i)) is 

18 amended by striking ‘‘(i)’’ at the beginning and in19 serting the following new subsection heading: 

20 ‘‘(i) SUSPENSION, REMOVAL, AND PROHIBITION FROM

21 PARTICIPATION ORDERS IN THE CASE OF CERTAIN CRIMI22 NAL OFFENSES.—’’.
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1 SEC. 607. STREAMLINING DEPOSITORY INSTITUTION MERG2 ER APPLICATION REQUIREMENTS. 

3 (a) IN GENERAL.—Paragraph (4) of section 18(c) of 

4 the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is 

5 amended to read as follows: 

6 ‘‘(4) REPORTS ON COMPETITIVE FACTORS.—

7 ‘‘(A) REQUEST FOR REPORT.—In the inter8 ests of uniform standards, before acting on any 

9 application for approval of a merger trans10 action, the responsible agency, unless the agency 

11 finds that it must act immediately in order to 

12 prevent the probable failure of a depository insti13 tution involved, shall—

14 ‘‘(i) request a report on the competitive 

15 factors involved from the Attorney General; 

16 and 

17 ‘‘(ii) provide a copy of the request to 

18 the Corporation (when the Corporation is 

19 not the responsible agency). 

20 ‘‘(B) FURNISHING OF REPORT.—The report 

21 requested under subparagraph (A) shall be fur22 nished by the Attorney General to the responsible 

23 agency—

24 ‘‘(i) not more than 30 calendar days 

25 after the date on which the Attorney Gen26 eral received the request; or 
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1 ‘‘(ii) not more than 10 calendar days 

2 after such date, if the requesting agency ad3 vises the Attorney General that an emer4 gency exists requiring expeditious action.’’.

5 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

6 penultimate sentence of section 18(c)(6) of the Federal De7 posit Insurance Act (12 U.S.C. 1828(c)(6)) is amended to 

8 read as follows: ‘‘If the agency has advised the Attorney 

9 General under paragraph (4)(B) of the existence of an emer10 gency requiring expeditious action and has requested a re11 port on the competitive factors within 10 days, the trans12 action may not be consummated before the fifth calendar 

13 day after the date of approval by the agency.’’. 

14 SEC. 608. INCLUSION OF DIRECTOR OF THE OFFICE OF 

15 THRIFT SUPERVISION IN LIST OF BANKING 

16 AGENCIES REGARDING INSURANCE CUS17 TOMER PROTECTION REGULATIONS. 

18 Section 47(g)(2)(B)(i) of the Federal Deposit Insur19 ance Act (12 U.S.C. 1831x(g)(2)(B)(i)) is amended by in20 serting ‘‘the Director of the Office of Thrift Supervision,’’ 

21 after ‘‘Comptroller of the Currency,’’. 
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1 SEC. 609. SHORTENING OF POST-APPROVAL ANTITRUST RE2 VIEW PERIOD WITH THE AGREEMENT OF THE 

3 ATTORNEY GENERAL. 

4 (a) ANTITRUST REVIEWS UNDER THE BANK HOLDING

5 COMPANY ACT OF 1956.—The 4th sentence of section 11(b) 

6 of the Bank Holding Company Act of 1956 (12 U.S.C. 

7 1849(b) is amended by striking ‘‘15 calendar days’’ and 

8 inserting ‘‘5 calendar days’’. 

9 (b) ANTITRUST REVIEWS UNDER THE FEDERAL DE10 POSIT INSURANCE ACT.—The last sentence of section 

11 18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 

12 1828(c)(6)) is amended by striking ‘‘15 calendar days’’ and 

13 inserting ‘‘5 calendar days’’. 

14 SEC. 610. PROTECTION OF CONFIDENTIAL INFORMATION 

15 RECEIVED BY FEDERAL BANKING REGU16 LATORS FROM FOREIGN BANKING SUPER17 VISORS. 

18 Section 15 of the International Banking Act of 1978 

19 (12 U.S.C. 3109) is amended by adding at the end the fol20 lowing new subsection: 

21 ‘‘(c) CONFIDENTIAL INFORMATION RECEIVED FROM

22 FOREIGN SUPERVISORS.—

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (3), a Federal banking agency may not be com25 pelled to disclose information received from a foreign 

26 regulatory or supervisory authority if—
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1 ‘‘(A) the foreign regulatory or supervisory 

2 authority has, in good faith, determined and 

3 represented to such Federal banking agency that 

4 public disclosure of the information would vio5 late the laws applicable to that foreign regu6 latory or supervisory authority; and 

7 ‘‘(B) the relevant Federal banking agency 

8 obtained such information pursuant to—

9 ‘‘(i) such procedures as the Federal 

10 banking agency may establish for use in 

11 connection with the administration and en12 forcement of Federal banking laws; or 

13 ‘‘(ii) a memorandum of understanding 

14 or other similar arrangement between the 

15 Federal banking agency and the foreign reg16 ulatory or supervisory authority. 

17 ‘‘(2) TREATMENT UNDER TITLE 5, UNITED

18 STATES CODE.—For purposes of section 552 of title 5, 

19 United States Code, this subsection shall be treated as 

20 a statute described in subsection (b)(3)(B) of such sec21 tion. 

22 ‘‘(3) SAVINGS PROVISION.—No provision of this 

23 section shall be construed as—

24 ‘‘(A) authorizing any Federal banking 

25 agency to withhold any information from any 
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1 duly authorized committee of the House of Rep2 resentatives or the Senate; or 

3 ‘‘(B) preventing any Federal banking agen4 cy from complying with an order of a court of 

5 the United States in an action commenced by the 

6 United States or such agency. 

7 ‘‘(4) FEDERAL BANKING AGENCY DEFINED.—For 

8 purposes of this subsection, the term ‘Federal banking 

9 agency’ means the Board, the Comptroller, the Fed10 eral Deposit Insurance Corporation, and the Director 

11 of the Office of Thrift Supervision.’’.

12 SEC. 611. PROHIBITION ON PARTICIPATION BY CONVICTED 

13 INDIVIDUAL. 

14 Section 19 of the Federal Deposit Insurance Act (12 

15 U.S.C. 1829) is amended by inserting after subsection (c) 

16 (as added by section 603 of this title) the following new 

17 subsections: 

18 ‘‘(d) BANK HOLDING COMPANIES.—Subsections (a) 

19 and (b) shall apply to any bank holding company, any sub20 sidiary (other than a bank) of a bank holding company, 

21 and any organization organized and operated under section 

22 25A of the Federal Reserve Act or operating under section 

23 25 of the Federal Reserve Act as if such bank holding com24 pany, subsidiary, or organization were an insured deposi25 tory institution, except such subsections shall be applied for 
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1 purposes of this subsection by substituting ‘Board of Gov2 ernors of the Federal Reserve System’ for ‘Corporation’ each 

3 place such term appears in such subsections. 

4 ‘‘(e) SAVINGS AND LOAN HOLDING COMPANIES.—Sub5 sections (a) and (b) shall apply to any savings and loan 

6 holding company and any subsidiary (other than a savings 

7 association) of a savings and loan holding company as if 

8 such savings and loan holding company or subsidiary were 

9 an insured depository institution, except such subsections 

10 shall be applied for purposes of this subsection by sub11 stituting ‘Director of the Office of Thrift Supervision’ for 

12 ‘Corporation’ each place such term appears in such sub13 sections.’’. 

14 SEC. 612. CLARIFICATION THAT NOTICE AFTER SEPARA15 TION FROM SERVICE MAY BE MADE BY AN 

16 ORDER. 

17 (a) IN GENERAL.—Section 8(i)(3) of the Federal De18 posit Insurance Act (12 U.S.C. 1818(i)(3)) is amended by 

19 inserting ‘‘or order’’ after ‘‘notice’’ each place such term ap20 pears. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

22 heading for section 8(i)(3) of the Federal Deposit Insurance 

23 Act (12 U.S.C. 1818(i)(3)) is amended by inserting ‘‘OR

24 ORDER’’ after ‘‘NOTICE’’. 
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1 SEC. 613. EXAMINERS OF FINANCIAL INSTITUTIONS. 

2 (a) OFFER OF CREDIT TO BANK EXAMINER.—Section 

3 212 of title 18, United States Code, is amended to read as 

4 follows: 

5 ‘‘§ 212. Offer of credit to bank examiner 

6 ‘‘(a) Subject to section 213(b), whoever being an officer, 

7 director or employee of a financial institution extends cred8 it to any examiner which the examiner is prohibited from 

9 accepting under section 213 shall be fined under this title 

10 or imprisoned not more than one year, or both; and may 

11 be fined a further sum equal to the amount of the credit 

12 extended. 

13 ‘‘(b) For purposes of this section, the following defini14 tions shall apply: 

15 ‘‘(1) The term ‘financial institution’ does not in16 clude a credit union, a Federal reserve bank, a Fed17 eral home loan bank, or a depository institution hold18 ing company. 

19 ‘‘(2) The term ‘examiner’ means any person—

20 ‘‘(A) appointed by a Federal financial in21 stitution regulatory agency or pursuant to the 

22 laws of any State to examine a financial institu23 tion; or 

24 ‘‘(B) elected under the law of any State to 

25 conduct examinations of any financial institu26 tion. 
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1 ‘‘(3) The term ‘Federal financial institution reg2 ulatory agency’ means—

3 ‘‘(A) the Comptroller of the Currency; 

4 ‘‘(B) the Board of Governors of the Federal 

5 Reserve System; 

6 ‘‘(C) the Director of the Office of Thrift Su7 pervision; 

8 ‘‘(D) the Federal Deposit Insurance Cor9 poration; 

10 ‘‘(E) the Federal Housing Finance Board; 

11 ‘‘(F) the Farm Credit Administration; 

12 ‘‘(G) the Farm Credit System Insurance 

13 Corporation; and 

14 ‘‘(H) the Small Business Administration.’’. 

15 (b) ACCEPTANCE OF CREDIT BY A BANK EXAMINER.—

16 Section 213 of title 18, United States Code, is amended to 

17 read as follows: 

18 ‘‘§ 213. Acceptance of credit by bank examiner 

19 ‘‘(a) Whoever, being an examiner, accepts an extension 

20 of credit from any financial institution that the examiner 

21 examines or has authority to examine, or from any person 

22 connected with any such financial institution, shall be fined 

23 under this title or imprisoned not more than one year, or 

24 both; and may be fined a further sum equal to the amount 
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1 of the credit extended, and shall be disqualified from holding 

2 office as such examiner. 

3 ‘‘(b) Notwithstanding subsection (a) or section 212, a 

4 Federal financial institution regulatory agency may, by 

5 regulation or by order on a case-by-case basis, permit a fi6 nancial institution to extend credit to an examiner, and 

7 permit an examiner to accept an extension of credit from 

8 a financial institution, if the agency determines that the 

9 extension of credit would not likely affect the integrity of 

10 any examination of a financial institution. Before pre11 scribing regulations or issuing any order under this sub12 section, a Federal financial institution regulatory agency

13 shall consult with each other Federal financial institution 

14 regulatory agency with regard to any such regulation or 

15 order. Any regulation prescribed by a Federal financial in16 stitution regulatory agency under this subsection, may ex17 empt certain classes or categories of credit from the scope 

18 of this section or section 212, and shall provide procedures 

19 for examiners and financial institutions to request case-by20 case exemption orders under this subsection, subject to sub21 section (c). 

22 ‘‘(c) In considering any request by a financial institu23 tion or examiner for a case-by-case exemption order under 

24 subsection (b), a Federal financial institution regulatory 
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1 agency shall consider such factors as the agency determines 

2 to be appropriate, including—

3 ‘‘(1) whether the terms and conditions of the 

4 credit being offered the examiner are generally com5 parable to those offered by the financial institution in 

6 connection with similar types of credit extended to 

7 other customers in similar circumstances; 

8 ‘‘(2) the nature and extent of any other relation9 ship the examiner has with the financial institution 

10 or any officer, director, or employee of the financial 

11 institution; 

12 ‘‘(3) the proximity in time between any exam13 ination of the financial institution in which the ex14 aminer participated, or is scheduled to participate, 

15 and the extension, or the offer of an extension, of cred16 it; 

17 ‘‘(4) whether there are any other circumstances 

18 involving the transaction, or the proposed trans19 action, that may be perceived as providing the exam20 iner with preferential treatment; and 

21 ‘‘(5) any other fact or circumstance the agency 

22 may consider to be appropriate under the cir23 cumstances. 

24 ‘‘(d) Notwithstanding subsection (a) or section 212, an 

25 examiner employed by a Federal financial institution regu-
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1 latory agency may apply for and receive a credit card, or 

2 otherwise be approved as a cardholder, under any credit 

3 card account under an open end consumer credit plan, to 

4 the extent the terms and conditions applicable with respect 

5 to such account, and any credit extended under such ac6 count, are no more favorable generally to the examiner than 

7 the terms and conditions that are generally applicable to 

8 credit card accounts offered by the same financial institu9 tion to other cardholders under open end consumer credit 

10 plans. 

11 ‘‘(e) For purposes of this section, the following defini12 tions shall apply: 

13 ‘‘(1) The terms ‘examiner’, ‘Federal financial in14 stitution regulatory agency’, and ‘financial institu15 tion’ have the same meaning as in section 212. 

16 ‘‘(2) The term ‘credit’ means the right granted 

17 by a creditor to a debtor to defer payment of debt or 

18 to incur debt and defer its payment. 

19 ‘‘(3) The term ‘creditor’ refers only to a person 

20 who both (A) regularly extends, whether in connection 

21 with loans, sales of property or services, or otherwise, 

22 consumer credit which is payable by agreement in 

23 more than four installments or for which the payment 

24 of a finance charge is or may be required, and (B) 

25 is the person to whom the debt arising from the con-
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1 sumer credit transaction is initially payable on the 

2 face of the evidence of indebtedness or, if there is no 

3 such evidence of indebtedness, by agreement. Notwith4 standing the preceding sentence, in the case of an 

5 open-end credit plan involving a credit card, the card 

6 issuer and any person who honors the credit card and 

7 offers a discount which is a finance charge are credi8 tors. 

9 ‘‘(4) The term ‘consumer’, when used with ref10 erence to an open end credit plan, means a credit 

11 plan under which the party to whom credit is offered 

12 or extended is a natural person, and the money, prop13 erty, or services which are the subject of any trans14 action under the plan are primarily for personal, 

15 family, or household purposes. 

16 ‘‘(5) The term ‘open end credit plan’ means a 

17 plan under which the creditor reasonably con18 templates repeated transactions, which prescribes the 

19 terms of such transactions, and which provides for a 

20 finance charge which may be computed from time to 

21 time on the outstanding unpaid balance. A credit 

22 plan which is an open end credit plan within the 

23 meaning of the preceding sentence is an open end 

24 credit plan even if credit information is verified from 

25 time to time. 
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1 ‘‘(6) The term ‘credit card’ means any card, 

2 plate, coupon book or other credit device existing for 

3 the purpose of obtaining money, property, labor, or 

4 services on credit. 

5 ‘‘(7) The term ‘cardholder’ means any person to 

6 whom a credit card is issued or any person who has 

7 agreed with the card issuer to pay obligations arising 

8 from the issuance of a credit card to another person. 

9 ‘‘(8) The term ‘card issuer’ means any person 

10 who issues a credit card, or the agent of such person 

11 with respect to such card.’’. 

12 (c) CLERICAL AMENDMENTS.—The table of sections for 

13 chapter 11 of title 18, United States Code, is amended by 

14 striking the items relating to sections 212 and 213 and in15 serting the following new items:

‘‘212. Offer of credit to bank examiner. 

‘‘213. Acceptance of credit by bank examiner.’’.

16 SEC. 614. PARITY IN STANDARDS FOR INSTITUTION-AFFILI17 ATED PARTIES. 

18 Section 3(u)(4) of the Federal Deposit Insurance Act 

19 (12 U.S.C. 1813(u)(4)) is amended by striking ‘‘knowingly 

20 or recklessly’’.
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1 SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS 

2 REGARDING FDIC DEPOSIT INSURANCE COV3 ERAGE. 

4 (a) IN GENERAL.—Section 18(a) of the Federal De5 posit Insurance Act (12 U.S.C. 1828(a)) is amended by 

6 adding at the end the following new paragraph: 

7 ‘‘(4) FALSE ADVERTISING, MISUSE OF FDIC

8 NAMES, AND MISREPRESENTATION TO INDICATE IN9 SURED STATUS.—

10 ‘‘(A) PROHIBITION ON FALSE ADVERTISING

11 AND MISUSE OF FDIC NAMES.—No person may—

12 ‘‘(i) use the terms ‘Federal Deposit’, 

13 ‘Federal Deposit Insurance’, ‘Federal De14 posit Insurance Corporation’, any combina15 tion of such terms, or the abbreviation

16 ‘FDIC’ as part of the business name or firm 

17 name of any person, including any corpora18 tion, partnership, business trust, associa19 tion, or other business entity; or 

20 ‘‘(ii) use such terms or any other sign 

21 or symbol as part of an advertisement, so22 licitation, or other document, 

23 to represent, suggest or imply that any deposit 

24 liability, obligation, certificate or share is in25 sured or guaranteed by the Federal Deposit In26 surance Corporation, if such deposit liability, ob-
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1 ligation, certificate, or share is not insured or 

2 guaranteed by the Corporation. 

3 ‘‘(B) PROHIBITION ON MISREPRESENTA4 TIONS OF INSURED STATUS.—No person may 

5 knowingly misrepresent—

6 ‘‘(i) that any deposit liability, obliga7 tion, certificate, or share is federally in8 sured, if such deposit liability, obligation, 

9 certificate, or share is not insured by the 

10 Corporation; or 

11 ‘‘(ii) the extent to which or the manner 

12 in which any deposit liability, obligation, 

13 certificate, or share is insured by the Fed14 eral Deposit Insurance Corporation, if such 

15 deposit liability, obligation, certificate, or 

16 share is not insured by the Corporation to 

17 the extent or in the manner represented. 

18 ‘‘(C) AUTHORITY OF FDIC.—The Corpora19 tion shall have—

20 ‘‘(i) jurisdiction over any person that 

21 violates this paragraph, or aids or abets the 

22 violation of this paragraph; and 

23 ‘‘(ii) for purposes of enforcing the re24 quirements of this paragraph with regard to 

25 any person—
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1 ‘‘(I) the authority of the Corpora2 tion under section 10(c) to conduct in3 vestigations; and 

4 ‘‘(II) the enforcement authority of 

5 the Corporation under subsections (b), 

6 (c), (d) and (i) of section 8, 

7 as if such person were a state nonmember in8 sured bank. 

9 ‘‘(D) OTHER ACTIONS PRESERVED.—No 

10 provision of this paragraph shall be construed as 

11 barring any action otherwise available, under 

12 the laws of the United States or any State, to 

13 any Federal or State law enforcement agency or 

14 individual.’’. 

15 (b) ENFORCEMENT ORDERS.—Section 8(c) of the Fed16 eral Deposit Insurance Act (12 U.S.C. 1818(c)) is amended 

17 by adding at the end the following new paragraph: 

18 ‘‘(4) FALSE ADVERTISING OR MISUSE OF NAMES

19 TO INDICATE INSURED STATUS.—

20 ‘‘(A) TEMPORARY ORDER.—

21 ‘‘(i) IN GENERAL.—If a notice of 

22 charges served under subsection (b)(1) of 

23 this section specifies on the basis of par24 ticular facts that any person is engaged in 

25 conduct described in section 18(a)(4), the 
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1 Corporation may issue a temporary order 

2 requiring—

3 ‘‘(I) the immediate cessation of 

4 any activity or practice described, 

5 which gave rise to the notice of charges; 

6 and 

7 ‘‘(II) affirmative action to prevent 

8 any further, or to remedy any existing, 

9 violation. 

10 ‘‘(ii) EFFECT OF ORDER.—Any tem11 porary order issued under this subpara12 graph shall take effect upon service. 

13 ‘‘(B) EFFECTIVE PERIOD OF TEMPORARY

14 ORDER.—A temporary order issued under sub15 paragraph (A) shall remain effective and en16 forceable, pending the completion of an adminis17 trative proceeding pursuant to subsection (b)(1) 

18 in connection with the notice of charges—

19 ‘‘(i) until such time as the Corporation 

20 shall dismiss the charges specified in such 

21 notice; or 

22 ‘‘(ii) if a cease-and-desist order is 

23 issued against such person, until the effec24 tive date of such order. 
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1 ‘‘(C) CIVIL MONEY PENALTIES.—Violations 

2 of section 18(a)(4) shall be subject to civil money 

3 penalties as set forth in subsection (i) in an 

4 amount not to exceed $1,000,000 for each day 

5 during which the violation occurs or continues.’’. 

6 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

7 (1) Section 18(a)(3) of the Federal Deposit In8 surance Act (12 U.S.C. 1828(a)) is amended—

9 (A) in the 1st sentence by striking ‘‘of this 

10 subsection’’ and inserting ‘‘of paragraphs (1) 

11 and (2)’’; 

12 (B) by striking the 2nd sentence; and 

13 (C) in the 3rd sentence, by striking ‘‘of this 

14 subsection’’ and inserting ‘‘of paragraphs (1) 

15 and (2)’’. 

16 (2) The heading for subsection (a) of section 18 

17 of the Federal Deposit Insurance Act (12 U.S.C. 

18 1828(a)) is amended by striking ‘‘INSURANCE

19 LOGO.—’’ and inserting ‘‘REPRESENTATIONS OF DE20 POSIT INSURANCE.—’’. 

21 SEC. 616. COMPENSATION OF FEDERAL HOME LOAN BANK 

22 DIRECTORS. 

23 Section 7(i) of the Federal Home Loan Bank Act (12 

24 U.S.C. 1427(i)) is amended to read as follows: 

25 ‘‘(i) DIRECTORS’ COMPENSATION.—
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1 ‘‘(1) IN GENERAL.—Each Federal home loan 

2 bank may pay the directors on the board of directors 

3 of the bank reasonable compensation for the time re4 quired of such directors, and reasonable expenses in5 curred by the directors, in connection with service on 

6 the board of directors, in accordance with resolutions 

7 adopted by the board of directors and subject to the 

8 approval of the board. 

9 ‘‘(2) ANNUAL REPORT BY THE BOARD.—Informa10 tion regarding compensation and expenses paid by 

11 the Federal home loan banks to the directors on the 

12 boards of directors of the banks shall be included in 

13 the annual report submitted to the Congress by the 

14 Board pursuant to section 2B(d).’’.

15 SEC. 617. EXTENSION OF TERMS OF FEDERAL HOME LOAN 

16 BANK DIRECTORS. 

17 (a) IN GENERAL.—Section 7(d) of the Federal Home 

18 Loan Bank Act (12 U.S.C. 1427(d)) is amended—

19 (1) in the first sentence, by striking ‘‘3 years’’ 

20 and inserting ‘‘4 years’’; and 

21 (2) in the 2nd sentence—

22 (A) by striking ‘‘Federal Home Loan Bank 

23 System Modernization Act of 1999’’ and insert24 ing ‘‘Financial Services Regulatory Relief Act of 

25 2003’’; and 
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1 (B) by striking ‘‘1/3’’ and inserting ‘‘1/4’’. 

2 (b) PROSPECTIVE APPLICATION.—The amendment 

3 made by subsection (a) shall not apply to the term of office 

4 in which any director of a Federal home loan bank is serv5 ing as of the date of the enactment of this Act, including 

6 any director elected or appointed to fill a vacancy in any 

7 such term of office.

8 SEC. 618. BIENNIAL REPORTS ON THE STATUS OF AGENCY 

9 EMPLOYMENT OF MINORITIES AND WOMEN. 

10 (a) IN GENERAL.—Before December 31, 2003, and the 

11 end of each 2-year period beginning after such date, each 

12 Federal banking agency shall submit a report to the Con13 gress on the status of the employment by the agency of mi14 nority individuals and women. 

15 (b) FACTORS TO BE INCLUDED.—The report shall in16 clude a detailed assessment of each of the following: 

17 (1) The extent of hiring of minority individuals 

18 and women by the agency as of the time the report 

19 is prepared. 

20 (2) The successes achieved and challenges faced 

21 by the agency in operating minority and women out22 reach programs. 

23 (3) Challenges the agency may face in finding 

24 qualified minority individual and women applicants. 
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1 (4) Such other information, findings, and con2 clusions, and recommendations for legislative or agen3 cy action, as the agency may determine to be appro4 priate to include in the report. 

5 (c) DEFINITIONS.—For purposes of this section, the fol6 lowing definitions shall apply: 

7 (1) FEDERAL BANKING AGENCY.—The term 

8 ‘‘Federal banking agency’’—

9 (A) has the same meaning as in section 3(z) 

10 of the Federal Deposit Insurance Act; and 

11 (B) includes the National Credit Union Ad12 ministration. 

13 (2) MINORITY.—The term ‘‘minority’’ has the 

14 same meaning as in section 1204(c)(3) of the Finan15 cial Institutions Reform, Recovery, and Enforcement 

16 Act of 1989. 

17 SEC. 619. COORDINATION OF STATE EXAMINATION AU18 THORITY. 

19 Section 10(h) of the Federal Deposit Insurance Act (12 

20 U.S.C. 1820(h)) is amended to read as follows: 

21 ‘‘(h) COORDINATION OF EXAMINATION AUTHORITY.—

22 ‘‘(1) IN GENERAL.—The appropriate State bank 

23 supervisor of the home State of an insured State bank 

24 has authority to examine and supervise the bank. The 

25 State bank supervisor of the home State of an insured 
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1 State bank shall exercise its authority to supervise 

2 and examine the branches of the bank in a host State 

3 in accordance with the terms of any applicable coop4 erative agreement between the home State bank super5 visor and the State bank supervisor of the relevant 

6 host State. Except as expressly provided in a coopera7 tive agreement between the State bank supervisors of 

8 the home State and host State(s) of an insured State 

9 bank, only the State bank supervisor of the home 

10 State of an insured State bank may levy or charge 

11 State supervisory fees on the bank. 

12 ‘‘(2) HOST STATE EXAMINATION.—With respect 

13 to a branch operated in a host State by an out-of14 State insured State bank that resulted from an inter15 state merger transaction approved under section 44 or 

16 that was established in such State pursuant to section 

17 5155(g) of the Revised Statutes, the third undesig18 nated paragraph of section 9 of the Federal Reserve 

19 Act or section 18(d)(4) of this Act, the appropriate 

20 State bank supervisor of such host State may—

21 ‘‘(A) with written notice to the State bank 

22 supervisor of the bank’s home State and subject 

23 to the terms of any applicable cooperative agree24 ment with the State bank supervisor of such 

25 home State, examine such branch for the purpose 
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1 of determining compliance with host State laws 

2 that are applicable pursuant to section 24(j) of 

3 this Act, including those that govern community 

4 reinvestment, fair lending, and consumer protec5 tion; and 

6 ‘‘(B) if expressly permitted under and sub7 ject to the terms of a cooperative agreement with 

8 the State bank supervisor of the bank’s home 

9 State or if such out-of-State insured State bank 

10 has been determined to be in a troubled condi11 tion by either the State bank supervisor of the 

12 bank’s home State or the bank’s appropriate 

13 Federal banking agency, participate in the ex14 amination of the bank by the State bank super15 visor of the bank’s home State to ascertain that 

16 the activities of the branch in such host State are 

17 not conducted in an unsafe or unsound manner. 

18 The State bank supervisor of the home State of 

19 an insured State bank shall notify the State 

20 bank supervisor of each host State of the bank if 

21 there has been a final determination that the 

22 bank is in a troubled condition. The State bank 

23 supervisor of the bank’s home State shall provide 

24 such notice as soon as reasonably possible but in 

25 all cases within 15 business days after the State 
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1 bank supervisor has made such final determina2 tion or has received written notification of such 

3 final determination. 

4 ‘‘(3) HOST STATE ENFORCEMENT.—If the State 

5 bank supervisor of a host State determines that a 

6 branch of an out-of-State State insured State bank is 

7 violating any law of the host State that is applicable 

8 to such branch pursuant to section 24(j) of this Act, 

9 including a law that governs community reinvest10 ment, fair lending, or consumer protection, the State 

11 bank supervisor of the host State or, to the extent au12 thorized by the law of the host State, a host State law 

13 enforcement officer may, with written notice to the 

14 State bank supervisor of the bank’s home State and

15 subject to the terms of any applicable cooperative 

16 agreement with the State bank supervisor of the 

17 bank’s home State, undertake such enforcement ac18 tions and proceedings as would be permitted under 

19 the law of the host State as if the branch were a bank 

20 chartered by that host State. 

21 ‘‘(4) COOPERATIVE AGREEMENT.—The State 

22 bank supervisors from 2 or more States may enter 

23 into cooperative agreements to facilitate State regu24 latory supervision of State banks, including coopera25 tive agreements relating to the coordination of exami-
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1 nations and joint participation in examinations. For 

2 purposes of this subsection (h), the term ‘‘cooperative 

3 agreement’’ means a written agreement that is signed 

4 by the home State bank supervisor and host State 

5 bank supervisor to facilitate State regulatory super6 vision of State banks and includes nationwide or 

7 multi-state cooperative agreements and cooperative 

8 agreements solely between the home State and host 

9 State. Except for State bank supervisors, no provision 

10 of this subsection (h) relating to such cooperative 

11 agreements shall be construed as limiting in any way 

12 the authority of home and host State law enforcement 

13 officers, regulatory supervisors, or other officials that 

14 have not signed such cooperative agreements to enforce 

15 host State laws that are applicable to a branch of an 

16 out-of-State insured State bank located in the host 

17 State pursuant to section 24(j) of this Act. 

18 ‘‘(5) FEDERAL REGULATORY AUTHORITY.—No 

19 provision of this subsection shall be construed as lim20 iting in any way the authority of any Federal bank21 ing agency. 

22 ‘‘(6) STATE TAXATION AUTHORITY NOT AF23 FECTED.—No provision of this subsection (h) shall be 

24 construed as affecting the authority of any State or 

25 political subdivision of any State to adopt, apply, or 
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1 administer any tax or method of taxation to any 

2 bank, bank holding company, or foreign bank, or any 

3 affiliate of any bank, bank holding company, or for4 eign bank, to the extent such tax or tax method is oth5 erwise permissible by or under the Constitution of the 

6 United States or other Federal law. 

7 ‘‘(7) DEFINITIONS.—For purpose of this section, 

8 the following definition shall apply: 

9 ‘‘(A) The terms ‘host State’, ‘home State’, 

10 and ‘out-of-State bank’ have the same meanings 

11 as in section 44(g). 

12 ‘‘(B) The term ‘State supervisory fees’ 

13 means assessments, examination fees, branch fees, 

14 license fees, and all other fees that are levied or 

15 charged by a State bank supervisor directly upon 

16 an insured State bank or upon branches of an 

17 insured State bank. 

18 ‘‘(C) Solely for purposes of subparagraph 

19 (2)(B) of this subsection (h), an insured State 

20 bank has been determined to be in ‘troubled con21 dition’ if the bank—

22 ‘‘(i) has a composite rating, as deter23 mined in its most recent report of examina24 tion, of 4 or 5 under the Uniform Financial 

25 Institutions Ratings System (UFIRS); or 
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1 ‘‘(ii) is subject to a proceeding initi2 ated by the Corporation for termination or 

3 suspension of deposit insurance; or 

4 ‘‘(iii) is subject to a proceeding initi5 ated by the State bank supervisor of the 

6 bank’s home State to vacate, revoke, or ter7 minate the charter of the bank, or to liq8 uidate the bank, or to appoint a receiver for 

9 the bank. 

10 ‘‘(D) For the purposes of paragraph (2)(B), 

11 the term ‘final determination’ means the trans12 mittal of a Report of Examination to the bank 

13 or transmittal of official notice of proceedings to 

14 the bank.’’.

15 TITLE VII—CLERICAL AND 

16 TECHNICAL AMENDMENTS 

17 SEC. 701. CLERICAL AMENDMENTS TO THE HOME OWNERS’

18 LOAN ACT. 

19 (a) AMENDMENT TO TABLE OF CONTENTS.—The table 

20 of contents in section 1 of the Home Owners’ Loan Act (12 

21 U.S.C. 1461) is amended by striking the items relating to 

22 sections 5 and 6 and inserting the following new items:

‘‘Sec. 5. Savings associations. 

‘‘Sec. 6. [Repealed.]’’.

23 (b) CLERICAL AMENDMENTS TO HEADINGS.—
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1 (1) The heading for section 4(a) of the Home 

2 Owners’ Loan Act (12 U.S.C. 1463(a)) is amended by 

3 striking ‘‘(a) FEDERAL SAVINGS ASSOCIATIONS.—’’ 

4 and inserting ‘‘(a) GENERAL RESPONSIBILITIES OF

5 THE DIRECTOR.—’’. 

6 (2) The section heading for section 5 of the Home 

7 Owners’ Loan Act (12 U.S.C. 1464) is amended to 

8 read as follows: 

9 ‘‘SEC. 5. SAVINGS ASSOCIATIONS.’’. 

10 SEC. 702. TECHNICAL CORRECTIONS TO THE FEDERAL 

11 CREDIT UNION ACT. 

12 The Federal Credit Union Act (12 U.S.C. 1751 et seq.) 

13 is amended as follows: 

14 (1) In section 101(3), strike ‘‘and’’ after the 

15 semicolon.

16 (2) In section 101(5), strike the terms ‘‘account 

17 account’’ and ‘‘account accounts’’ each place any such 

18 term appears and insert ‘‘account’’. 

19 (3) In section 107(a)(5)(E) (as so designated by 

20 section 303 of this Act), strike the period at the end 

21 and insert a semicolon.

22 (4) In paragraphs (6) and (7) of section 107(a) 

23 (as so designated by section 303 of this Act), strike the 

24 period at the end and insert a semicolon. 
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1 (5) In section 107(a)(7)(D) (as so designated by 

2 section 303 of this Act), strike ‘‘the Federal Savings 

3 and Loan Insurance Corporation or’’. 

4 (6) In section 107(a)(7)(E) (as so designated by 

5 section 303 of this Act), strike ‘‘the Federal Home 

6 Loan Bank Board,’’ and insert ‘‘the Federal Housing 

7 Finance Board,’’. 

8 (7) In section 107(a)(9) (as so designated by sec9 tion 303 of this Act), strike ‘‘subchapter III’’ and in10 sert ‘‘title III’’. 

11 (8) In section 107(a)(13) (as so designated by 

12 section 303 of this Act), strike the ‘‘and’’ after the 

13 semicolon at the end. 

14 (9) In section 109(c)(2)(A)(i), strike ‘‘(12 U.S.C. 

15 4703(16))’’. 

16 (10) In section 120(h), strike ‘‘under the Act ap17 proved July 30, 1947 (6 U.S.C., secs. 6–13),’’ and in18 sert ‘‘chapter 93 of title 31, United States Code,’’. 

19 (11) In section 201(b)(5), strike ‘‘section 116 of’’. 

20 (12) In section 202(h)(3), strike ‘‘section 

21 207(c)(1)’’ and insert ‘‘section 207(k)(1)’’. 

22 (13) In section 204(b), strike ‘‘such others pow23 ers’’ and insert ‘‘such other powers’’. 

24 (14) In section 206(e)(3)(D), strike ‘‘and’’ after 

25 the semicolon at the end. 
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1 (15) In section 206(f)(1), strike ‘‘subsection 

2 (e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. 

3 (16) In section 206(g)(7)(D), strike ‘‘and sub4 section (1)’’. 

5 (17) In section 206(t)(2)(B), insert ‘‘regulations’’ 

6 after ‘‘as defined in’’. 

7 (18) In section 206(t)(2)(C), strike ‘‘material af8 fect’’ and insert ‘‘material effect’’. 

9 (19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ 

10 after the semicolon at the end. 

11 (20) In section 206A(a)(2)(A), strike ‘‘regulator 

12 agency’’ and insert ‘‘regulatory agency’’. 

13 (21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ 

14 after the semicolon at the end. 

15 (22) In section 207(c)(8)(D)(ii)(I), insert a clos16 ing parenthesis after ‘‘Act of 1934’’. 

17 (23) In the heading for subparagraph (A) of sec18 tion 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. 

19 (24) In section 207(f)(3)(A), strike ‘‘category or 

20 claimants’’ and insert ‘‘category of claimants’’. 

21 (25) In section 209(a)(8), strike the period at the 

22 end and insert a semicolon. 

23 (26) In section 216(n), insert ‘‘any action’’ be24 fore ‘‘that is required’’. 
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1 (27) In section 304(b)(3), strike ‘‘the affairs or 

2 such credit union’’ and insert ‘‘the affairs of such 

3 credit union’’. 

4 (28) In section 310, strike ‘‘section 102(e)’’ and 

5 insert ‘‘section 102(d)’’. 

6 SEC. 703. OTHER TECHNICAL CORRECTIONS. 

7 (a) Section 1306 of title 18, United States Code, is 

8 amended by striking ‘‘5136A’’ and inserting ‘‘5136B’’. 

9 (b) Section 5239 of the Revised Statutes of the United 

10 States (12 U.S.C. 93) is amended by redesignating the sec11 ond of the 2 subsections designated as subsection (d) (as 

12 added by section 331(b)(3) of the Riegle Community Devel13 opment and Regulatory Improvement Act of 1994) as sub14 section (e). 

15 SEC. 704. REPEAL OF OBSOLETE PROVISIONS OF THE BANK 

16 HOLDING COMPANY ACT OF 1956. 

17 (a) IN GENERAL.—Section 2 of the Bank Holding 

18 Company Act of 1956 (12 U.S.C. 1841) is amended—

19 (1) in subsection (c)(2), by striking subpara20 graphs (I) and (J); and 

21 (2) by striking subsection (m) and inserting the 

22 following new subsection: 

23 ‘‘(m) [Repealed]’’. 

24 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

25 Paragraphs (1) and (2) of section 4(h) of the Bank Holding 
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1 Company Act of 1956 (12 U.S.C. 1843(h)) are each amend2 ed by striking ‘‘(G), (H), (I), or (J) of section 2(c)(2)’’ and 

3 inserting ‘‘(G), or (H) of section 2(c)(2)’’.
Union Calendar No. 113

108TH CONGRESS 

1ST SESSION H. R. 1375

[Report No. 108–152, Parts I and II] 

A BILL

To provide regulatory relief and improve productivity for insured depository institutions, and for 

other purposes. 

JULY 14, 2003

Reported from the Committee on the Judiciary with an 

amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed