I 

108TH CONGRESS 

1ST SESSION H. R. 1375

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 

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 

5 ‘‘Financial 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. 
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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. 

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-ofstate 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. 
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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. 

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 FDIC 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. 
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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. 

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.

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 

7 must 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. 

12 Every director must own in his or her own right’’ 

13 and inserting ‘‘total number of directors. 

14 ‘‘(b) INVESTMENT REQUIREMENT.—

15 ‘‘(1) IN GENERAL.—Every director of a na16 tional bank shall own, in his or her own right,’’; and 
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1 (3) by adding at the end the following new 

2 paragraph: 

3 ‘‘(2) EXCEPTION FOR SUBORDINATED DEBT IN

4 CERTAIN CASES.—In lieu of the requirements of 

5 paragraph (1) relating to the ownership of capital 

6 stock in the national bank, the Comptroller of the 

7 Currency may, by regulation or order, permit an in8 dividual to serve as a director of a national bank 

9 that has elected, or notifies the Comptroller of the 

10 bank’s intention to elect, to operate as a S corpora11 tion pursuant to section 1362(a) of the Internal 

12 Revenue Code of 1986, if that individual holds debt 

13 of at least $1,000 issued by the national bank that 

14 is subordinated to the interests of depositors and 

15 other general creditors of the national bank.’’. 

16 SEC. 102. VOTING IN SHAREHOLDER ELECTIONS. 

17 Section 5144 of the Revised Statutes of the United 

18 States (12 U.S.C. 61) is amended—

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

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

21 the national bank, to cumulate’’; 

22 (2) by striking the comma after ‘‘his shares 

23 shall equal’’; and 

24 (3) by adding at the end the following new sen25 tence: ‘‘The Comptroller of the Currency may pre-
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1 scribe such regulations to carry out the purposes of 

2 this section as the Comptroller determines to be ap3 propriate.’’. 

4 SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS FOR NA5 TIONAL BANKS. 

6 Section 5199 of the Revised Statutes of the United 

7 States (12 U.S.C. 60) is amended to read as follows: 

8 ‘‘SEC. 5199. NATIONAL BANK DIVIDENDS. 

9 ‘‘(a) IN GENERAL.—Subject to subsection (b), the di10 rectors of any national bank may declare a dividend of 

11 so much of the undivided profits of the bank as the direc12 tors judge to be expedient. 

13 ‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIR14 CUMSTANCES.—A national bank may not declare and pay 

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

16 sum of the total of the net income of the bank for that 

17 year and the retained net income of the bank in the pre18 ceding two years, minus any transfers required by the 

19 Comptroller of the Currency (including any transfers re20 quired to be made to a fund for the retirement of any 

21 preferred stock), unless the Comptroller of the Currency 

22 approves the declaration and payment of dividends in ex23 cess of such amount.’’. 
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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 

6 sentence. 

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 ex22 ists justifying such waiver, by unanimous action of the 

23 shareholders of the association or State bank’’ and insert24 ing ‘‘Publication of notice may be waived if the Comp25 troller determines that an emergency exists justifying such 

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

2 requirement 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 

7 1978 (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 

10 Federal branch or agency of a foreign bank in any 

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

12 any deposit requirements imposed under section 6, 

13 shall keep on deposit, in accordance with such regu14 lations as the Comptroller of the Currency may pre15 scribe in accordance with paragraph (2), dollar de16 posits, investment securities, or other assets in such 

17 amounts as the Comptroller of the Currency deter18 mines to be necessary for the protection of deposi19 tors and other investors and to be consistent with 

20 the principles of safety 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 
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1 foreign bank under the laws and regulations of the 

2 State in which the Federal agency or branch is lo3 cated.’’. 

4 SEC. 108. EQUAL TREATMENT FOR FEDERAL AGENCIES OF 

5 FOREIGN BANKS. 

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

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

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

9 after ‘‘deposits’’. 

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

11 FEDERAL AGENCY IN THE SAME STATE. 

12 Section 4(e) of the International Banking Act of 

13 1978 (12 U.S.C. 3102(e)) is amended by inserting ‘‘if the 

14 maintenance of both an agency and a branch in the State 

15 is prohibited under the law of such State’’ before the pe16 riod at the end. 

17 SEC. 110. BUSINESS ORGANIZATION FLEXIBILITY FOR NA18 TIONAL BANKS. 

19 (a) IN GENERAL.—Chapter one of title LXII of the 

20 Revised Statutes of the United States (12 U.S.C. 21 et 

21 seq.) is amended by inserting after section 5136B the fol22 lowing new section: 

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

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

25 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 

9 regulations prescribed under subsection (a), a national 

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

11 have the same rights and privileges and shall be subject 

12 to the same duties, restrictions, penalties, liabilities, condi13 tions, and limitations as a national bank that is organized 

14 as a body corporate.’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENT.—

16 Section 5136 of the Revised Statutes of the United States 

17 (12 U.S.C. 24) is amended, in the matter preceding the 

18 paragraph designated as the ‘‘First’’, by inserting ‘‘or 

19 other form of business organization provided under regula20 tions prescribed by the Comptroller of the Currency under 

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

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

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

24 the United States (12 U.S.C. 21 et seq.) is amended by 
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1 inserting after the item relating to section 5136B the fol2 lowing 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 

6 States is amended—

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

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

9 place where its operation of discount and deposit are 

10 to be carried on’’ and inserting ‘‘The place where 

11 the main office of the national bank is, or is to be, 

12 located’’; 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 

20 THE 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 associa8 tion as defined in section 2(4) of the Home 

9 Owners’ Loan Act,’’ after ‘‘banking insti10 tution,’’; 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 

17 U.S.C. 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 

6 the Federal Deposit Insurance Act (12 

7 U.S.C. 1813(b))) the deposits of which are 

8 insured by the Federal Deposit Insurance 

9 Corporation, a subsidiary or a department 

10 or division of any such savings association, 

11 or a savings and loan holding company; 

12 and’’;

13 (B) in subparagraph (B)—

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

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

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

17 clause (iii); 

18 (iii) by redesignating clause (iv) as 

19 clause (v); and 

20 (iv) by inserting the following new 

21 clause after clause (iii): 

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

23 Thrift Supervision, in the case of a savings 

24 association (as defined in section 3(b) of 

25 the Federal Deposit Insurance Act (12 
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1 U.S.C. 1813(b))) the deposits of which are 

2 insured by the Federal Deposit Insurance 

3 Corporation, or a subsidiary of any such 

4 savings association, or a savings and loan 

5 holding company; and’’; 

6 (C) in subparagraph (C)—

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

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

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

10 clause (iii); 

11 (iii) by redesignating clause (iv) as 

12 clause (v); and 

13 (iv) by inserting the following new 

14 clause after clause (iii): 

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

16 Thrift Supervision, in the case of a savings 

17 association (as defined in section 3(b) of 

18 the Federal Deposit Insurance Act (12 

19 U.S.C. 1813(b))) the deposits of which are 

20 insured by the Federal Deposit Insurance 

21 Corporation, a savings and loan holding 

22 company, or a subsidiary of a savings and 

23 loan holding company when the appro24 priate regulatory agency for such clearing 

25 agency is not the Commission; and’’; 
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1 (D) in subparagraph (D)—

2 (i) by striking ‘‘and’’ at the end of 

3 clause (ii); 

4 (ii) by redesignating clause (iii) as 

5 clause (iv); and 

6 (iii) by inserting the following new 

7 clause after clause (ii): 

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

9 Thrift Supervision, in the case of a savings 

10 association (as defined in section 3(b) of 

11 the Federal Deposit Insurance Act (12 

12 U.S.C. 1813(b))) the deposits of which are 

13 insured by the Federal Deposit Insurance 

14 Corporation; and’’; 

15 (E) in subparagraph (F)—

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

17 and (iv) as clauses (iii), (iv), and (v), re18 spectively; and 

19 (ii) by inserting the following new 

20 clause after clause (i): 

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

22 Thrift Supervision, in the case of a savings 

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

24 the Federal Deposit Insurance Act (12 

25 U.S.C. 1813(b))) the deposits of which are 
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1 insured by the Federal Deposit Insurance 

2 Corporation; and’’; and 

3 (F) at the end of the last undesignated 

4 paragraph, by inserting the following new sen5 tence: ‘‘As used in this paragraph, the term 

6 ‘savings and loan holding company’ has the 

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

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

9 (b) INVESTMENT ADVISERS ACT OF 1940.—

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

11 of the Investment Advisers Act of 1940 (15 U.S.C. 

12 80b–2(a)(2)) is amended—

13 (A) in subparagraph (A) by inserting ‘‘or 

14 a Federal savings association, as defined in sec15 tion 2(5) of the Home Owners’ Loan Act’’ after 

16 ‘‘a banking institution organized under the laws 

17 of the United States’’; and 

18 (B) in subparagraph (C)—

19 (i) by inserting ‘‘, savings association 

20 as defined in section 2(4) of the Home 

21 Owners’ Loan Act,’’ after ‘‘banking insti22 tution’’; and 

23 (ii) by inserting ‘‘or savings associa24 tions’’ after ‘‘having supervision over 

25 banks’’. 
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1 (2) CONFORMING AMENDMENTS.—Subsections 

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

3 210A of such Act (15 U.S.C. 80b–10a), as added by 

4 section 220 of the Gramm-Leach-Bliley Act, are 

5 each amended by striking ‘‘bank holding company’’ 

6 each place it occurs and inserting ‘‘bank holding 

7 company or savings and loan holding company’’. 

8 (c) CONFORMING AMENDMENT TO THE INVESTMENT

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

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

11 by section 213(c) of the Gramm-Leach-Bliley Act, is 

12 amended by inserting after ‘‘1956)’’ the following: ‘‘or any 

13 one savings and loan holding company (together with its 

14 affiliates and subsidiaries) (as such terms are defined in 

15 section 10 of the Home Owners’ Loan Act)’’. 

16 SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA17 TIONS AUTHORIZED TO PROMOTE THE PUB18 LIC WELFARE. 

19 (a) IN GENERAL.—Section 5(c)(3) of the Home Own20 ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding 

21 at the end the following new subparagraph: 

22 ‘‘(E) DIRECT INVESTMENTS TO PROMOTE

23 THE PUBLIC WELFARE.—

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

25 association may make investments de-
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1 signed primarily to promote the public wel2 fare, including the welfare of low- and 

3 moderate-income communities or families 

4 through the provision of housing, services, 

5 and jobs. 

6 ‘‘(ii) DIRECT INVESTMENTS OR ACQUI7 SITION OF INTEREST IN OTHER COMPA8 NIES.—Investments under clause (i) may 

9 be made directly or by purchasing interests 

10 in an entity primarily engaged in making 

11 such investments. 

12 ‘‘(iii) PROHIBITION ON UNLIMITED LI13 ABILITY.—No investment may be made 

14 under this subparagraph which would sub15 ject a Federal savings association to unlim16 ited liability to any person. 

17 ‘‘(iv) SINGLE INVESTMENT LIMITA18 TION TO BE ESTABLISHED BY DIREC19 TOR.—Subject to clauses (v) and (vi), the 

20 Director shall establish, by order or regula21 tion, limits on—

22 ‘‘(I) the amount any savings as23 sociation may invest in any 1 project; 

24 and 
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1 ‘‘(II) the aggregate amount of in2 vestment of any savings association 

3 under this subparagraph. 

4 ‘‘(v) FLEXIBLE AGGREGATE INVEST5 MENT LIMITATION.—The aggregate 

6 amount of investments of any savings asso7 ciation under this subparagraph may not 

8 exceed an amount equal to the sum of 5 

9 percent of the savings association’s capital 

10 stock actually paid in and unimpaired and 

11 5 percent of the savings association’s 

12 unimpaired surplus, unless—

13 ‘‘(I) the Director determines that 

14 the savings association is adequately 

15 capitalized; and 

16 ‘‘(II) the Federal Deposit Insur17 ance Corporation determines, by 

18 order, that the aggregate amount of 

19 investments in a higher amount than 

20 the limit under this clause will pose 

21 no significant risk to the affected de22 posit insurance fund. 

23 ‘‘(vi) MAXIMUM AGGREGATE INVEST24 MENT LIMITATION.—Notwithstanding 

25 clause (v), the aggregate amount of invest-
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1 ments of any savings association under 

2 this subparagraph may not exceed an 

3 amount equal to the sum of 10 percent of 

4 the savings association’s capital stock actu5 ally paid in and unimpaired and 10 per6 cent of the savings association’s 

7 unimpaired surplus. 

8 ‘‘(vii) INVESTMENTS NOT SUBJECT TO

9 OTHER LIMITATION ON QUALITY OF IN10 VESTMENTS.—No obligation a Federal sav11 ings association acquires or retains under 

12 this subparagraph shall be taken into ac13 count for purposes of the limitation con14 tained in section 28(d) of the Federal De15 posit Insurance Act on the acquisition and 

16 retention of any corporate debt security 

17 not of investment grade.’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENT.—

19 Section 5(c)(3)(A) of the Home Owners’ Loan Act (12 

20 U.S.C. 1464(c)(3)(A)) is amended to read as follows: 

21 ‘‘(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

11 WITH NONDEPOSITORY INSTITUTION AFFILI12 ATES.—

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

14 of the Director, a Federal savings associa15 tion may merge with any nondepository in16 stitution affiliate of the savings associa17 tion. 

18 ‘‘(ii) RULE OF CONSTRUCTION.—No 

19 provision of clause (i) shall be construed 

20 as—

21 ‘‘(I) affecting the applicability of 

22 section 18(c) of the Federal Deposit 

23 Insurance Act; or 

24 ‘‘(II) granting a Federal savings 

25 association any power or any author26 ity to engage in any activity that is 
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1 not authorized for a Federal savings 

2 association under any other provision 

3 of this Act or any other provision of 

4 law.’’. 

5 SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE6 QUIREMENT FOR SAVINGS ASSOCIATION SUB7 SIDIARIES OF SAVINGS AND LOAN HOLDING 

8 COMPANIES. 

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

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

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

12 may—

13 ‘‘(1) require a savings association that is a sub14 sidiary of a savings and loan holding company to 

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

16 savings association to pay a dividend on its guar17 anty, permanent, or other nonwithdrawable stock; 

18 and 

19 ‘‘(2) establish conditions on the payment of 

20 dividends by such a savings association.’’. 
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1 SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR 

2 TRUST OWNERSHIP OF SAVINGS ASSOCIA3 TIONS. 

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

5 Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is amend6 ed—

7 (1) by striking ‘‘trust,’’ and inserting ‘‘business 

8 trust,’’; and 

9 (2) by inserting ‘‘or any other trust unless by 

10 its terms it must terminate within 25 years or not 

11 later than 21 years and 10 months after the death 

12 of individuals living on the effective date of the 

13 trust,’’ after ‘‘or similar organization,’’. 

14 (b) TECHNICAL AND CONFORMING AMENDMENT.—

15 Section 10(a)(3) of the Home Owners’ Loan Act (12 

16 U.S.C. 1467a(a)(3)) is amended—

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

18 that follows through ‘‘any company by virtue’’ where 

19 such term appears in subparagraph (A) and insert20 ing ‘‘does not include any company by virtue’’; 

21 (2) by striking ‘‘; and’’ at the end of subpara22 graph (A) and inserting a period; and 

23 (3) by striking subparagraph (B). 
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•HR 1375 IH 

1 SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING 

2 PURCHASED MORTGAGE SERVICING RIGHTS. 

3 Section 5(t) of the Home Owners’ Loan Act (12 

4 U.S.C. 1464(t)) is amended—

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

6 following new paragraph: 

7 ‘‘(4) [Repealed.]’’; and 

8 (2) in paragraph (9)(A), by striking ‘‘intangible 

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

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

11 SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL 

12 SAVINGS ASSOCIATIONS TO INVEST IN SMALL 

13 BUSINESS INVESTMENT COMPANIES. 

14 Subparagraph (D) of section 5(c)(4) of the Home 

15 Owners’ Loan Act (12 U.S.C. 1464(c)(4)) is amended to 

16 read as follows: 

17 ‘‘(D) SMALL BUSINESS INVESTMENT COM18 PANIES.—Any Federal savings association may 

19 invest in 1 or more small business investment 

20 companies, or in any entity established to invest 

21 solely in small business investment companies 

22 formed under the Small Business Investment 

23 Act of 1958, except that the total amount of in24 vestments under this subparagraph may not at 

25 any time exceed the amount equal to 5 percent 
25

•HR 1375 IH 

1 of capital and surplus of the savings associa2 tion.’’. 

3 SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN 

4 AUTO LOANS. 

5 (a) IN GENERAL.—Section 5(c)(1) of the Home Own6 ers’ Loan Act (12 U.S.C. 1464(c)(1)) is amended by add7 ing at the end the following new subparagraph: 

8 ‘‘(V) AUTO LOANS.—Loans and leases for 

9 motor vehicles acquired for personal, family, or 

10 household purposes.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENT RE12 LATING TO QUALIFIED THRIFT INVESTMENTS.—Section 

13 10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12 

14 U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the 

15 end the following new subclause: 

16 ‘‘(VIII) Loans and leases for 

17 motor vehicles acquired for personal, 

18 family, or household purposes.’’.

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

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

21 1934 (15 U.S.C. 78o(h)) is amended by adding at 

22 the end the following new paragraph: 

23 ‘‘(4) SELLING AND OFFERING OF DEPOSIT

24 PRODUCTS.—No law, rule, regulation, or order, or 

25 other administrative action of any State or political
26

•HR 1375 IH 

1 subdivision thereof shall directly or indirectly require 

2 any agent who represents 1 Federal savings associa3 tion (as such term is defined in section 2(5) of the 

4 Home Owners’ Loan Act (12 U.S.C. 1462(5)) in 

5 selling or offering deposit (as such term is defined 

6 in section 3 of the Federal Deposit Insurance Act 

7 (12 U.S.C. 1813(l)) products issued by such associa8 tion to qualify or register as a broker, dealer, associ9 ated person of a broker, or associated person of a 

10 dealer, or to qualify or register in any other similar 

11 status or capacity.’’. 

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

13 SERVICES. 

14 Section 5(n) of the Home Owners’ Loan Act (12 

15 U.S.C. 1464(n)) is amended by adding at the end the fol16 lowing new paragraph: 

17 ‘‘(11) FUNERAL- AND CEMETERY-RELATED FI18 DUCIARY SERVICES.—

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

20 cemetery operator, when acting in such capac21 ity, (or any other person in connection with a 

22 contract or other agreement with a funeral di23 rector or cemetery operator) may engage any 

24 Federal savings association, regardless of where 

25 the association is located, to act in any fidu-
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•HR 1375 IH 

1 ciary capacity in which the savings association 

2 has the right to act in accordance with this sec3 tion, including holding funds deposited in trust 

4 or escrow by the funeral director or cemetery 

5 operator (or by such other party), and the sav6 ings association may act in such fiduciary ca7 pacity on behalf of the funeral director or ceme8 tery operator (or such other person). 

9 ‘‘(B) DEFINITIONS.—For purposes of this 

10 paragraph, the following definitions shall apply: 

11 ‘‘(i) CEMETERY.—The term ‘ceme12 tery’ means any land or structure used, or 

13 intended to be used, for the internment of 

14 human remains in any form. 

15 ‘‘(ii) CEMETERY OPERATOR.—The 

16 term ‘cemetery operator’ means any person 

17 who contracts or accepts payment for mer18 chandise, endowment, or perpetual care 

19 services in connection with a cemetery. 

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

21 ‘funeral director’ means any person who 

22 contracts or accepts payment to provide or 

23 arrange—

24 ‘‘(I) services for the final disposi25 tion of human remains; or 
28

•HR 1375 IH 

1 ‘‘(II) funeral services, property, 

2 or merchandise (including cemetery 

3 services, property, or merchandise).’’. 

4 SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER RE5 QUIREMENT WITH RESPECT TO OUT-OF6 STATE BRANCHES. 

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

8 U.S.C. 1464(r)(1)) is amended by striking the ultimate 

9 sentence.

10 SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL 

11 LOANS. 

12 (a) ELIMINATION OF LENDING LIMIT ON SMALL

13 BUSINESS LOANS.—Section 5(c)(1) of the Home Owners’ 

14 Loan Act (12 U.S.C. 1464(c)(1)) is amended by inserting 

15 after subparagraph (V) (as added by section 208 of this 

16 title) the following new subparagraph: 

17 ‘‘(W) SMALL BUSINESS LOANS.—Small 

18 business loans, as defined in regulations which 

19 the Director shall prescribe.’’

20 (b) INCREASE IN LENDING LIMIT ON OTHER BUSI21 NESS LOANS.—Section 5(c)(2)(A) of the Home Owners’ 

22 Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by strik23 ing ‘‘, and amounts in excess of 10 percent’’ and all that 

24 follows through ‘‘by the Director’’. 
29

•HR 1375 IH 

1 SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 

2 ASSOCIATIONS FOR FEDERAL COURT JURIS3 DICTION. 

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

5 1464) is amended by adding at the end the following new 

6 subsection: 

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

8 whether a Federal court has diversity jurisdiction over a 

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

10 Federal savings association shall be considered to be a cit11 izen only of the State in which such savings association 

12 has its main office.’’. 

13 SEC. 214. CLARIFICATION OF APPLICABILITY OF CERTAIN 

14 PROCEDURAL DOCTRINES. 

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

16 (12 U.S.C. 1821a(d)) is amended—

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

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

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

20 (2) by adding at the end the following new 

21 paragraph: 

22 ‘‘(2) CLARIFICATION OF APPLICABILITY OF

23 CERTAIN PROCEDURAL DOCTRINES.—In any pro24 ceeding seeking a monetary recovery against the 

25 United States, or an agency or official thereof, based 

26 upon actions of the Federal Savings and Loan In-
30

•HR 1375 IH 

1 surance Corporation prior to its dissolution, or the 

2 Federal Home Loan Bank Board prior to its dis3 solution, and arising from the Financial Institutions 

4 Reform, Recovery, and Enforcement Act of 1989 or 

5 its implementation, and where any monetary recov6 ery in such proceeding would be paid from the 

7 FSLIC Resolution Fund or any supplements there8 to, neither the United States Court of Federal 

9 Claims, the United States Court of Appeals for the 

10 Federal Circuit, nor any other court of competent 

11 jurisdiction shall dismiss, or affirm on appeal the 

12 dismissal of, the claims of any party seeking such 

13 monetary recovery, on the basis of res judicata, col14 lateral estoppel, or any similar doctrine, defense, or 

15 rule of law, based upon any decision, opinion, or 

16 order of judgment entered by any court prior to July 

17 1, 1996. Unless some other defense is applicable, in 

18 any such proceeding, the United States Court of 

19 Federal Claims, the United States Court of Appeals 

20 for the Federal Circuit, and any other court of com21 petent jurisdiction shall review the merits of the 

22 claims of the party seeking such monetary relief and 

23 shall enter judgment accordingly.’’.
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•HR 1375 IH 

1 TITLE III—CREDIT UNION 

2 PROVISIONS 

3 SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR4 IZED TO BECOME MEMBERS OF A FEDERAL 

5 HOME LOAN BANK. 

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

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

8 at the end the following new paragraph: 

9 ‘‘(5) CERTAIN PRIVATELY INSURED CREDIT

10 UNIONS.—

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

12 has been determined, in accordance with section 

13 43(e)(1) of the Federal Deposit Insurance Act 

14 and subject to the requirements of subpara15 graph (B), to meet all eligibility requirements 

16 for Federal deposit insurance shall be treated 

17 as an insured depository institution for pur18 poses of determining the eligibility of such cred19 it union for membership in a Federal home loan 

20 bank under paragraphs (1), (2), and (3). 

21 ‘‘(B) CERTIFICATION BY APPROPRIATE SU22 PERVISOR.—

23 ‘‘(i) IN GENERAL.—For purposes of 

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

25 credit union which lacks Federal deposit 
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•HR 1375 IH 

1 insurance and which has applied for mem2 bership in a Federal home loan bank may 

3 be treated as meeting all the eligibility re4 quirements for Federal deposit insurance 

5 only if the appropriate supervisor of the 

6 State in which the credit union is char7 tered has determined that the credit union 

8 meets all the eligibility requirements for 

9 Federal deposit insurance as of the date of 

10 the application for membership. 

11 ‘‘(ii) CERTIFICATION DEEMED

12 VALID.—If, in the case of any credit union 

13 to which clause (i) applies, the appropriate 

14 supervisor of the State in which such cred15 it union is chartered fails to make a deter16 mination pursuant to such clause by the 

17 end of the 6-month period beginning on 

18 the date of the application, the credit 

19 union shall be deemed to have met the re20 quirements of clause (i). 

21 ‘‘(C) SECURITY INTERESTS OF FEDERAL

22 HOME LOAN BANK NOT AVOIDABLE.—Notwith23 standing any provision of State law authorizing 

24 a conservator or liquidating agent of a credit 
33

•HR 1375 IH 

1 union to repudiate contracts, no such provision 

2 shall apply with respect to—

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

4 Federal home loan bank to any credit 

5 union which is a member of any such bank 

6 pursuant to this paragraph; or 

7 ‘‘(ii) any security interest in the as8 sets of such credit union securing any such 

9 extension of credit.’’. 

10 (b) COPIES OF AUDITS OF PRIVATE INSURERS OF

11 CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE

12 PROVIDED TO SUPERVISORY AGENCIES.—Section 

13 43(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 

14 1831t(a)(2)) is amended—

15 (1) by striking ‘‘and’’ at the end of subpara16 graph (A)(i); 

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

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

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

20 end of subparagraph (A): 

21 ‘‘(iii) in the case of depository institu22 tions described in subsection (f)(2)(A) the 

23 deposits of which are insured by the pri24 vate insurer, the National Credit Union 
34

•HR 1375 IH 

1 Administration, not later than 7 days after 

2 that audit is completed; and 

3 ‘‘(iv) in the case of depository institu4 tions described in subsection (f)(2)(A) the 

5 deposits of which are insured by the pri6 vate insurer which are members of a Fed7 eral home loan bank, the Federal Housing 

8 Finance Board, not later than 7 days after 

9 that audit is completed.’’; and 

10 (4) by adding at the end of such section 

11 43(a)(2) the following new subparagraph: 

12 ‘‘(C) CONSULTATION.—The appropriate 

13 supervisory agency of each State in which a pri14 vate deposit insurer insures deposits in an insti15 tution described in subsection (f)(2)(A) which—

16 ‘‘(i) lacks Federal deposit insurance; 

17 and 

18 ‘‘(ii) has become a member of a Fed19 eral home loan bank, 

20 shall provide the National Credit Union Admin21 istration, upon request, with the results of any 

22 examination and reports related thereto con23 cerning the private deposit insurer to which 

24 such agency may have in its possession.’’.
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•HR 1375 IH 

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

2 CREDIT UNIONS. 

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

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

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

6 union’’ and inserting ‘‘Notwithstanding any other 

7 provision of law, upon application by any credit 

8 union’’; 

9 (2) by inserting ‘‘on lands reserved for the use 

10 of, and under the exclusive or concurrent jurisdiction 

11 of, the United States or’’ after ‘‘officer or agency of 

12 the United States charged with the allotment of 

13 space’’; 

14 (3) by inserting ‘‘lease land or’’ after ‘‘such of15 ficer or agency may in his or its discretion’’; and 

16 (4) by inserting ‘‘or the facility built on the 

17 lease land’’ after ‘‘credit union to be served by the 

18 allotment of space’’. 

19 (b) CLERICAL AMENDMENT.—The heading for sec20 tion 124 is amended by inserting ‘‘OR FEDERAL LAND’’ 

21 after ‘‘BUILDINGS’’. 

22 SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED23 IT UNIONS. 

24 Section 107 of the Federal Credit Union Act (12 

25 U.S.C. 1757) is amended—
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•HR 1375 IH 

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

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

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

4 (2) by adding at the end the following new sub5 section: 

6 ‘‘(b) INVESTMENT FOR THE CREDIT UNION’S OWN

7 ACCOUNT.—

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

9 purchase and hold for its own account such invest10 ment securities of investment grade as the Board 

11 may authorize by regulation, subject to such limita12 tions and restrictions as the Board may prescribe in 

13 the regulations. 

14 ‘‘(2) PERCENTAGE LIMITATIONS.—

15 ‘‘(A) SINGLE OBLIGOR.—In no event may 

16 the total amount of investment securities of any 

17 single obligor or maker held by a Federal credit 

18 union for the credit union’s own account exceed 

19 at any time an amount equal to 10 percent of 

20 the net worth of the credit union. 

21 ‘‘(B) AGGREGATE INVESTMENTS.—In no 

22 event may the aggregate amount of investment 

23 securities held by a Federal credit union for the 

24 credit union’s own account exceed at any time 
37

•HR 1375 IH 

1 an amount equal to 10 percent of the assets of 

2 the credit union. 

3 ‘‘(3) INVESTMENT SECURITY DEFINED.—

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

5 subsection, the term ‘investment security’ 

6 means marketable obligations evidencing the in7 debtedness of any person in the form of bonds, 

8 notes, or debentures and other instruments 

9 commonly referred to as investment securities. 

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

11 The Board may further define the term ‘invest12 ment security’. 

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

14 ‘investment grade’ means with respect to an invest15 ment security purchased by a credit union for its 

16 own account, an investment security that at the time 

17 of such purchase is rated in one of the 4 highest rat18 ing categories by at least 1 nationally recognized 

19 statistical rating organization. 

20 ‘‘(5) CLARIFICATION OF PROHIBITION ON

21 STOCK OWNERSHIP.—No provision of this sub22 section shall be construed as authorizing a Federal 

23 credit union to purchase shares of stock of any cor24 poration for the credit union’s own account, except 

25 as otherwise permitted by law.’’. 
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•HR 1375 IH 

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

2 TERM OF FEDERAL CREDIT UNION LOANS TO 

3 15 YEARS. 

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

5 (12 U.S.C. 1757(5)) (as so designated by section 303 of 

6 this title) is amended—

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

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

9 shall not exceed twelve years except as otherwise 

10 provided herein’’ and inserting ‘‘to make loans, the 

11 maturities of which shall not exceed 15 years or any 

12 longer maturity as the Board may allow, in regula13 tions, except as otherwise provided in this Act’’; 

14 (2) in subparagraph (A)—

15 (A) by striking clause (ii); 

16 (B) by redesignating clauses (iii) through 

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

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

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

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

21 CREDIT UNION SERVICE ORGANIZATIONS. 

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

23 (12 U.S.C. 1757(7)(I)) (as so designated by section 303 

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

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

26 total paid’’. 
39

•HR 1375 IH 

1 SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS 

2 TO NONPROFIT RELIGIOUS ORGANIZATIONS. 

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

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

5 loans made to nonprofit religious organizations,’’ after 

6 ‘‘total amount of such loans’’.

7 SEC. 307. CHECK CASHING AND MONEY TRANSFER SERV8 ICES OFFERED WITHIN THE FIELD OF MEM9 BERSHIP. 

10 Paragraph (12) of section 107(a) of the Federal 

11 Credit Union Act (12 U.S.C. 1757(12)) (as so designated 

12 by section 303 of this title) is amended to read as follows: 

13 ‘‘(12) in accordance with regulations prescribed 

14 by the Board—

15 ‘‘(A) to sell, to persons in the field of 

16 membership, negotiable checks (including trav17 elers checks), money orders, and other similar 

18 money transfer instruments (including elec19 tronic fund transfers); and 

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

21 receive electronic fund transfers for persons in 

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

23 SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE 

24 COMMON-BOND CREDIT UNIONS. 

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

26 (12 U.S.C. 1759(d)(2) is amended—
40

•HR 1375 IH 

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

2 subparagraph (B); 

3 (2) by striking the period at the end of sub4 paragraph (C) and inserting ‘‘; or’’; and 

5 (3) by adding at the end the following new sub6 paragraph: 

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

8 credit union approved by the Board on or after 

9 August 7, 1998.’’. 

10 SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CRED11 IT UNIONS. 

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

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

14 (2) the following new paragraph: 

15 ‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP

16 OF CERTAIN MEMBER GROUPS IN COMMUNITY CHAR17 TER CONVERSIONS.—In the case of a voluntary con18 version of a common-bond credit union described in 

19 paragraph (1) or (2) of subsection (b) into a com20 munity credit union described in subsection (b)(3), 

21 the Board shall prescribe, by regulation, the criteria 

22 under which the Board may determine that a mem23 ber group or other portion of a credit union’s exist24 ing membership, that is located outside the well-de25 fined local community, neighborhood, or rural dis-
41

•HR 1375 IH 

1 trict that shall constitute the community charter, 

2 can be satisfactorily served by the credit union and 

3 remain within the community credit union’s field of 

4 membership.’’. 

5 SEC. 310. CREDIT UNION GOVERNANCE. 

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

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

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

9 ‘‘(b) POLICY AND ACTIONS OF BOARDS OF DIREC10 TORS OF FEDERAL CREDIT UNIONS.—

11 ‘‘(1) EXPULSION OF MEMBERS FOR NON12 PARTICIPATION OR FOR JUST CAUSE.—The board of 

13 directors of a Federal credit union may, by majority 

14 vote of a quorum of directors, adopt and enforce a 

15 policy with respect to expulsion from membership, 

16 by a majority vote of such board of directors, based 

17 on just cause, including disruption of credit union 

18 operations, or on nonparticipation by a member in 

19 the affairs of the credit union. 

20 ‘‘(2) WRITTEN NOTICE OF POLICY TO MEM21 BERS.—If a policy described in paragraph (1) is 

22 adopted, written notice of the policy as adopted and 

23 the effective date of such policy shall be provided 

24 to—
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•HR 1375 IH 

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

2 union not less than 30 days prior to the effec3 tive date of such policy; and 

4 ‘‘(B) each new member prior to or upon 

5 applying for membership.’’. 

6 (b) TERM LIMITS AUTHORIZED FOR BOARD MEM7 BERS OF FEDERAL CREDIT UNIONS.—Section 111(a) of 

8 the Federal Credit Union Act (12 U.S.C. 1761(a)) is 

9 amended by adding at the end the following new sentence: 

10 ‘‘The bylaws of a Federal credit union may limit the num11 ber of consecutive terms any person may serve on the 

12 board of directors of such credit union.’’. 

13 (c) REIMBURSEMENT FOR LOST WAGES DUE TO

14 SERVICE ON CREDIT UNION BOARD NOT TREATED AS

15 COMPENSATION.—Section 111(c) of the Federal Credit 

16 Union Act (12 U.S.C. 1761(c)) is amended by inserting 

17 ‘‘, including lost wages,’’ after ‘‘the reimbursement of rea18 sonable expenses’’. 

19 SEC. 311. PROVIDING THE NATIONAL CREDIT UNION AD20 MINISTRATION WITH GREATER FLEXIBILITY 

21 IN RESPONDING TO MARKET CONDITIONS. 

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

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

24 by section 303 of this title) is amended by striking ‘‘six25 month period and that prevailing interest rate levels’’ and 
43

•HR 1375 IH 

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

2 levels’’. 

3 SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION 

4 REQUIREMENT OF THE CLAYTON ACT. 

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

6 18a(c)(7)) is amended by inserting ‘‘205(b)(3) of the Fed7 eral Credit Union Act (12 U.S.C. 1785(b)(3),’’ before ‘‘or 

8 section 3’’. 

9 SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY 

10 INSTITUTIONS UNDER SECURITIES LAWS. 

11 (a) DEFINITION OF BANK UNDER THE SECURITIES

12 EXCHANGE ACT OF 1934.—Section 3(a)(6) of the Securi13 ties Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) (as 

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

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

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

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

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

19 and (5) of this subsection and only for activities oth20 erwise authorized by applicable laws to which such 

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

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

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

24 (B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’. 
44

•HR 1375 IH 

1 (b) DEFINITION OF BANK UNDER THE INVESTMENT

2 ADVISERS ACT OF 1940.—Section 202(a)(2) of the In3 vestment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) 

4 (as amended by section 201(b)(1) of this Act) is amend5 ed—

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

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

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

9 Union Act) but only for activities otherwise author10 ized by applicable laws to which such credit unions 

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

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

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

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

15 (c) DEFINITION OF APPROPRIATE FEDERAL BANK16 ING AGENCY.—Section 210A(c) of the Investment Advis17 ers Act of 1940 (15 U.S.C. 80b–10a(c)) (as amended by 

18 section 201(c) of this Act) is amended by inserting ‘‘and 

19 includes the National Credit Union Administration Board, 

20 in the case of an insured credit union (as defined in sec21 tion 101(7) of the Federal Credit Union Act)’’ before the 

22 period at the end.
45

•HR 1375 IH 

1 TITLE IV—DEPOSITORY 

2 INSTITUTION PROVISIONS 

3 SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCH4 ING AND MERGERS. 

5 (a) DE NOVO INTERSTATE BRANCHES OF NATIONAL

6 BANKS.—

7 (1) IN GENERAL.—Section 5155(g)(1) of the 

8 Revised Statutes of the United States (12 U.S.C. 

9 36(g)(1)) is amended by striking ‘‘maintain a 

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

11 subparagraph (B) and inserting ‘‘maintain a 

12 branch.’’. 

13 (2) CLERICAL AMENDMENT.—The heading for 

14 subsection (g) of section 5155 of the Revised Stat15 utes of the United States is amended by striking 

16 ‘‘STATE ‘OPT-IN’ ELECTION TO PERMIT’’. 

17 (b) DE NOVO INTERSTATE BRANCHES OF STATE

18 NONMEMBER BANKS.—

19 (1) IN GENERAL.—Section 18(d)(4)(A) of the 

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

21 1828(d)(4)(A)) is amended by striking ‘‘maintain a 

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

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

24 (2) CLERICAL AMENDMENT.—The heading for 

25 paragraph (4) of section 18(d) of the Federal De-
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•HR 1375 IH 

1 posit Insurance Act is amended by striking ‘‘STATE

2 ‘OPT-IN’ ELECTION TO PERMIT INTERSTATE’’ and in3 serting ‘‘INTERSTATE’’. 

4 (c) DE NOVO INTERSTATE BRANCHES OF STATE

5 MEMBER BANKS.—The 3rd undesignated paragraph of 

6 section 9 of the Federal Reserve Act (12 U.S.C. 321) is 

7 amended by adding at the end the following new sen8 tences: ‘‘A State member bank may establish and operate 

9 a de novo branch in a host State (as such terms are de10 fined in section 18(d) of the Federal Deposit Insurance 

11 Act) on the same terms and conditions and subject to the 

12 same limitations and restrictions as are applicable to the 

13 establishment of a de novo branch of a national bank in 

14 a host State under section 5155(g) of the Revised Statutes 

15 of the United States. Such section 5155(g) shall be ap16 plied for purposes of the preceding sentence by sub17 stituting ‘Board of Governors of the Federal Reserve Sys18 tem’ for ‘Comptroller of the Currency’ and ‘State member 

19 bank’ for ‘national bank’.’’. 

20 (d) INTERSTATE MERGER OF BANKS.—

21 (1) MERGER OF INSURED BANK WITH ANOTHER

22 DEPOSITORY INSTITUTION OR TRUST COMPANY.—

23 Section 44(a)(1) of the Federal Deposit Insurance 

24 Act (12 U.S.C. 1831u(a)(1)) is amended—
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•HR 1375 IH 

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

2 1997, the’’ and inserting ‘‘The’’; and 

3 (B) by striking ‘‘insured banks with dif4 ferent home States’’ and inserting ‘‘an insured 

5 bank and another insured depository institution 

6 or trust company with a different home State 

7 than the resulting insured bank’’. 

8 (2) NATIONAL BANK TRUST COMPANY MERGER

9 WITH OTHER TRUST COMPANY.—Subsection (b) of 

10 section 4 of the National Bank Consolidation and 

11 Merger Act (12 U.S.C. 215a–1(b)) is amended to 

12 read as follows: 

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

14 WITH ANOTHER TRUST COMPANY.—A national bank that 

15 is a trust company may engage in a consolidation or merg16 er under this Act with any trust company with a different 

17 home State, under the same terms and conditions that 

18 would apply if the trust companies were located within the 

19 same State.’’. 

20 (e) INTERSTATE FIDUCIARY ACTIVITY.—Section 

21 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 

22 1828(d)) is amended by adding at the end the following 

23 new paragraph: 

24 ‘‘(5) INTERSTATE FIDUCIARY ACTIVITY.—
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•HR 1375 IH 

1 ‘‘(A) AUTHORITY OF STATE BANK SUPER2 VISOR.—The State bank supervisor of a State 

3 bank may approve an application by the State 

4 bank, when not in contravention of home State 

5 or host State law, to act as trustee, executor, 

6 administrator, registrar of stocks and bonds, 

7 guardian of estates, assignee, receiver, com8 mittee of estates of lunatics, or in any other fi9 duciary capacity in a host State in which State 

10 banks or other corporations which come into 

11 competition with national banks are permitted 

12 to act under the laws of such host State. 

13 ‘‘(B) NONCONTRAVENTION OF HOST STATE

14 LAW.—Whenever the laws of a host State au15 thorize or permit the exercise of any or all of 

16 the foregoing powers by State banks or other 

17 corporations which compete with national 

18 banks, the granting to and the exercise of such 

19 powers by a State bank as provided in this 

20 paragraph shall not be deemed to be in con21 travention of host State law within the meaning 

22 of this paragraph. 

23 ‘‘(C) STATE BANK INCLUDES TRUST COM24 PANIES.—For purposes of this paragraph, the 
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•HR 1375 IH 

1 term ‘State bank’ includes any State-chartered 

2 trust company (as defined in section 44(g)). 

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

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

5 ‘host State’ have the meanings given such 

6 terms in section 44.’’. 

7 (f) TECHNICAL AND CONFORMING AMENDMENTS.—

8 (1) Section 44 of the Federal Deposit Insurance 

9 Act (12 U.S.C. 1831u) is amended—

10 (A) in subsection (a)—

11 (i) by striking paragraph (4) and in12 serting the following new paragraph: 

13 ‘‘(4) TREATMENT OF BRANCHES IN CONNEC14 TION WITH CERTAIN INTERSTATE MERGER TRANS15 ACTIONS.—In the case of an interstate merger 

16 transaction which involves the acquisition of a 

17 branch of an insured depository institution or trust 

18 company without the acquisition of the insured de19 pository institution or trust company, the branch 

20 shall be treated, for purposes of this section, as an 

21 insured depository institution or trust company the 

22 home State of which is the State in which the 

23 branch is located.’’; and 

24 (ii) by striking paragraphs (5) and 

25 (6); 
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•HR 1375 IH 

1 (B) in subsection (b)—

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

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

4 inserting ‘‘insured depository institution’’; 

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

6 term appears in paragraph (2)(E) and in7 serting ‘‘insured depository institutions or 

8 trust companies’’; 

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

10 place such term appears in that portion of 

11 paragraph (3) that precedes subparagraph 

12 (A) and inserting ‘‘insured depository insti13 tution affiliate’’; 

14 (iv) by striking ‘‘any bank’’ where 

15 such term appears in paragraph (3)(B) 

16 and inserting ‘‘any insured depository in17 stitution’’; 

18 (v) by striking ‘‘bank’’ where such 

19 term appears in paragraph (4)(A) and in20 serting ‘‘insured depository institution and 

21 trust company’’; and 

22 (vi) by striking ‘‘all banks’’ where 

23 such term appears in paragraph (5) and 

24 inserting ‘‘all insured depository institu25 tions and trust companies’’; 
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•HR 1375 IH 

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

2 bank’’ and inserting ‘‘any insured depository in3 stitution or trust company’’; 

4 (D) in subsection (e)—

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

6 inserting ‘‘1 or more insured depository in7 stitutions’’; and 

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

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

10 (E) by striking clauses (i) and (ii) of sub11 section (g)(4)(A) and inserting the following 

12 new clauses: 

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

14 Federal savings association, the State in 

15 which the main office of the bank or sav16 ings association is located; and 

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

18 State savings association, or State-char19 tered trust company, the State by which 

20 the bank, savings association, or trust 

21 company is chartered; and’’; 

22 (F) by striking paragraph (5) of subsection 

23 (g) and inserting the following new paragraph: 

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

25 means—
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•HR 1375 IH 

1 ‘‘(A) with respect to an insured depository 

2 institution, a State, other than the home State 

3 of the depository institution, in which the de4 pository institution maintains, or seeks to es5 tablish and maintain, a branch; and 

6 ‘‘(B) with respect to a trust company, a 

7 State, other than the home State of the trust 

8 company, in which the trust company acts, or 

9 seeks to act, in 1 or more fiduciary capacities.’’; 

10 (G) in subsection (g)(10), by striking ‘‘sec11 tion 18(c)(2)’’ and inserting ‘‘paragraph (1) or 

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

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

14 the following new paragraph: 

15 ‘‘(12) TRUST COMPANY.—The term ‘trust com16 pany’ means—

17 ‘‘(A) any national bank; 

18 ‘‘(B) any savings association; and 

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

20 company, savings bank, or other banking insti21 tution which is incorporated under the laws of 

22 any State, 

23 that is authorized to act in 1 or more fiduciary ca24 pacities but is not in the business of receiving depos-
53

•HR 1375 IH 

1 its other than trust funds (as defined in section 

2 3(p)).’’. 

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

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

5 (A) in paragraph (1)—

6 (i) by striking subparagraphs (B) and 

7 (C); and 

8 (ii) by redesignating subparagraph 

9 (D) as subparagraph (B); and 

10 (B) in paragraph (5), by striking ‘‘sub11 paragraph (B) or (D)’’ and inserting ‘‘subpara12 graph (B)’’. 

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

14 Bank Consolidation and Merger Act (12 U.S.C. 

15 215a–1(c)) is amended to read as follows: 

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

17 terms ‘home State’, ‘out-of-State bank’, and ‘trust com18 pany’ each have the same meaning as in section 44(g) of 

19 the Federal Deposit Insurance Act.’’. 

20 (g) CLERICAL AMENDMENTS.—

21 (1) The heading for section 44(b)(2)(E) of the 

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

23 1831u(b)(2)(E)) is amended by striking ‘‘BANKS’’ 

24 and inserting ‘‘INSURED DEPOSITORY INSTITUTIONS

25 AND TRUST COMPANIES’’. 
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•HR 1375 IH 

1 (2) The heading for section 44(e) of the Fed2 eral Deposit Insurance Act (12 U.S.C. 1831u(e)) is 

3 amended by striking ‘‘BANKS’’ and inserting ‘‘IN4 SURED DEPOSITORY INSTITUTIONS’’. 

5 SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW 

6 OF APPOINTMENT OF A RECEIVER FOR DE7 POSITORY INSTITUTIONS. 

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

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

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

11 the Currency’’ and inserting the following: 

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

13 BANK. 

14 ‘‘(a) IN GENERAL.—The Comptroller of the Cur15 rency’’; and 

16 (2) by adding at the end the following new sub17 section: 

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

19 Currency appoints a receiver under subsection (a), the na20 tional bank may, within 30 days thereafter, bring an ac21 tion in the United States district court for the judicial dis22 trict in which the home office of such bank is located, or 

23 in the United States District Court for the District of Co24 lumbia, for an order requiring the Comptroller of the Cur25 rency to remove the receiver, and the court shall, upon 
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•HR 1375 IH 

1 the merits, dismiss such action or direct the Comptroller 

2 of the Currency to remove the receiver.’’. 

3 (b) INSURED DEPOSITORY INSTITUTIONS.—Section 

4 11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C. 

5 1821(c)(7)) is amended to read as follows: 

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

7 appointed (including the appointment of the Cor8 poration as receiver by the Board of Directors) as 

9 conservator or receiver of a depository institution 

10 under paragraph (4), (9), or (10), the depository in11 stitution may, within 30 days thereafter, bring an 

12 action in the United States district court for the ju13 dicial district in which the home office of such de14 pository institution is located, or in the United 

15 States District Court for the District of Columbia, 

16 for an order requiring the Corporation to be re17 moved as the conservator or receiver (regardless of 

18 how such appointment was made), and the court 

19 shall, upon the merits, dismiss such action or direct 

20 the Corporation to be removed as the conservator or 

21 receiver.’’. 

22 (c) EXPANSION OF PERIOD FOR CHALLENGING THE

23 APPOINTMENT OF A LIQUIDATING AGENT.—Subpara24 graph (B) of section 207(a)(1) of the Federal Credit 
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•HR 1375 IH 

1 Union Act (12 U.S.C. 1787(a)(1)) is amended by striking 

2 ‘‘10 days’’ and inserting ‘‘30 days’’. 

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

4 subsections (a), (b), and (c) shall apply with respect to 

5 conservators, receivers, or liquidating agents appointed on 

6 or after the date of the enactment of this Act. 

7 SEC. 403. REPORTING REQUIREMENTS RELATING TO IN8 SIDER LENDING. 

9 (a) REPORTING REQUIREMENTS REGARDING LOANS

10 TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section 

11 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is 

12 amended—

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

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

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

16 (b) REPORTING REQUIREMENTS REGARDING LOANS

17 FROM CORRESPONDENT BANKS TO EXECUTIVE OFFI18 CERS AND SHAREHOLDERS OF INSURED BANKS.—Section 

19 106(b)(2) of the Bank Holding Company Act Amend20 ments of 1970 (12 U.S.C. 1972(2)) is amended—

21 (1) by striking subparagraph (G); and 

22 (2) by redesignating subparagraphs (H) and (I) 

23 as subparagraphs (G) and (H), respectively.
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•HR 1375 IH 

1 SEC. 404. AMENDMENT TO PROVIDE AN INFLATION AD2 JUSTMENT FOR THE SMALL DEPOSITORY IN3 STITUTION EXCEPTION UNDER THE DEPOSI4 TORY INSTITUTION MANAGEMENT INTER5 LOCKS ACT. 

6 Section 203(1) of the Depository Institution Manage7 ment Interlocks Act (12 U.S.C. 3202(1)) is amended by 

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

9 SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF IN10 SURED DEPOSITORY INSTITUTIONS. 

11 (a) CLARIFICATION RELATING TO THE ENFORCE12 ABILITY OF AGREEMENTS AND CONDITIONS.—The Fed13 eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 

14 amended by adding at the end the following new section: 

15 ‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS. 

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

17 (ii) of section 8(b)(6)(A) or section 38(e)(2)(E), an appro18 priate Federal banking agency may enforce, under section 

19 8, the terms of—

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

21 agency on a depository institution or an institution22 affiliated party (including a bank holding company) 

23 in connection with any action on any application, no24 tice, or other request concerning a depository insti25 tution; or 
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•HR 1375 IH 

1 ‘‘(2) any written agreement entered into be2 tween the agency and an institution-affiliated party 

3 (including a bank holding company). 

4 ‘‘(b) RECEIVERSHIPS AND CONSERVATORSHIPS.—

5 After the appointment of the Corporation as the receiver 

6 or conservator for any insured depository institution, the 

7 Corporation may enforce any condition or agreement de8 scribed in paragraph (1) or (2) of subsection (a) involving 

9 such institution or any institution-affiliated party (includ10 ing a bank holding company), through an action brought 

11 in an appropriate United States district court.’’. 

12 (b) PROTECTION OF CAPITAL OF INSURED DEPOSI13 TORY INSTITUTIONS.—Paragraph (1) of section 18(u) of 

14 the Federal Deposit Insurance Act (12 U.S.C. 1828(u)) 

15 is amended by striking subparagraph (B) and by redesig16 nating subparagraph (C) as subparagraph (B). 

17 SEC. 406. INVESTMENTS BY INSURED SAVINGS ASSOCIA18 TIONS IN BANK SERVICE COMPANIES AU19 THORIZED. 

20 (a) IN GENERAL.—Sections 2 and 3 of the Bank 

21 Service Company Act (12 U.S.C. 1862, 1863) are each 

22 amended by striking ‘‘insured bank’’ each place such term 

23 appears and inserting ‘‘insured depository institution’’. 

24 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
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•HR 1375 IH 

1 (1) Section 1(b)(4) of the Bank Service Com2 pany Act (12 U.S.C. 1861(b)(4)) is amended—

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

4 appears in connection with the term ‘insured 

5 depository institution’,’’ after ‘‘means’’; and 

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

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

8 Thrift Supervision’’. 

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

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

11 (A) by striking paragraph (5) and insert12 ing the following new paragraph: 

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

14 term ‘insured depository institution’ has the mean15 ing given the term in section 3(c) of the Federal De16 posit Insurance Act;’’; 

17 (B) by striking ‘‘and’’ at the end of para18 graph (7); 

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

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

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

22 paragraph: 

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

24 ‘Federal depository institution’, ‘State savings asso25 ciation’ and ‘Federal savings association’ have the 
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•HR 1375 IH 

1 meanings given the terms in section 3 of the Federal 

2 Deposit Insurance Act.’’. 

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

4 the Home Owners’ Loan Act (12 U.S.C. 

5 1464(c)(4)(B)) is amended by striking ‘‘by savings 

6 associations of such State and by Federal associa7 tions’’ and inserting ‘‘by State and Federal deposi8 tory 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 Com15 pany Act (12 U.S.C. 1861(b)(8)) is further amend16 ed—

17 (A) by striking ‘‘insured bank’’ and insert18 ing ‘‘insured depository institution’’

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

20 such term appears and inserting ‘‘insured de21 pository institutions’’; and 

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

23 ‘‘the depository institution’s’’. 

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

25 (12 U.S.C. 1862) is amended by inserting ‘‘or sav-
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•HR 1375 IH 

1 ings associations, other than the limitation on the 

2 amount of investment by a Federal savings associa3 tion contained in section 5(c)(4)(B) of Home Own4 ers’ Loan Act’’ after ‘‘relating to banks’’. 

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

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

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

8 place such term appears. 

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

10 Act (12 U.S.C. 1864(d)) is amended by inserting 

11 ‘‘or Federal savings association’’ after ‘‘national 

12 bank’’ each place such term appears. 

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

14 Act (12 U.S.C. 1864(e)) is amended to read as fol15 lows: 

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

17 ‘‘(1) only those services that each depository in18 stitution shareholder or member is otherwise author19 ized to perform under any applicable Federal or 

20 State law; and 

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

22 in which each such shareholder or member is author23 ized to perform such services.’’.
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1 (10) Section 4(f) of the Bank Service Company 

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

3 savings associations’’ after ‘‘location of banks’’. 

4 (11) Section 5 of the Bank Service Company 

5 Act (12 U.S.C. 1865) is amended—

6 (A) in subsection (a)—

7 (i) by striking ‘‘insured bank’’ and in8 serting ‘‘insured depository institution’’; 

9 and 

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

11 ‘‘institution’s’’. 

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

13 bank’’ and inserting ‘‘insured depository insti14 tution’’; and 

15 (C) in subsection (c)—

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

17 and inserting ‘‘any depository institution’’; 

18 and 

19 (ii) by striking ‘‘capability of the 

20 bank’’ and inserting ‘‘capability of the de21 pository institution’’. 

22 (12) Section 7 of the Bank Service Company 

23 Act (12 U.S.C. 1867) is amended—
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•HR 1375 IH 

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

2 bank’’ and inserting ‘‘insured depository insti3 tution’’; 

4 (B) in subsection (c)—

5 (i) by striking ‘‘a bank’’ each place 

6 such term appears and inserting ‘‘a deposi7 tory institution’’; and 

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

9 such term appears and inserting ‘‘the de10 pository institution’’. 

11 SEC. 407. CROSS GUARANTEE AUTHORITY. 

12 Subparagraph (A) of section 5(e)(9) of the Federal 

13 Deposit Insurance Act (12 U.S.C. 1815(e)(9)(A)) is 

14 amended to read as follows: 

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

16 same company; or’’. 

17 SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK 

18 HOLDING COMPANIES. 

19 Subsection (k) of section 18 of the Federal Deposit 

20 Insurance Act (12 U.S.C. 1828(k)) is amended—

21 (1) in paragraph (2)(A), by striking ‘‘or deposi22 tory institution holding company’’ and inserting ‘‘or 

23 covered company’’; 

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

25 (2) and inserting the following new subparagraph: 
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•HR 1375 IH 

1 ‘‘(B) Whether there is a reasonable basis 

2 to believe that the institution-affiliated party is 

3 substantially responsible for—

4 ‘‘(i) the insolvency of the depository 

5 institution or covered company; 

6 ‘‘(ii) the appointment of a conservator 

7 or receiver for the depository institution; or 

8 ‘‘(iii) the depository institution’s trou9 bled condition (as defined in the regula10 tions prescribed pursuant to section 

11 32(f)).’’; 

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

13 institution holding company’’ and inserting ‘‘covered 

14 company,’’; 

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

16 subparagraph (A), by striking ‘‘depository institu17 tion holding company’’ and inserting ‘‘covered com18 pany’’; 

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

20 company’’ and inserting ‘‘covered company’’; 

21 (6) in paragraph (4)(A)—

22 (A) by striking ‘‘depository institution 

23 holding company’’ each place such term appears 

24 and inserting ‘‘covered company’’; and 
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•HR 1375 IH 

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

2 place such term appears (other than in connec3 tion with the term referred to in subparagraph 

4 (A)) and inserting ‘‘covered company’’; 

5 (7) in paragraph (5)(A), by striking ‘‘depository 

6 institution holding company’’ and inserting ‘‘covered 

7 company’’; 

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

9 following new subparagraph: 

10 ‘‘(D) COVERED COMPANY.—The term ‘cov11 ered company’ means any depository institution 

12 holding company (including any company re13 quired to file a report under section 4(f)(6) of 

14 the Bank Holding Company Act of 1956), or 

15 any other company that controls an insured de16 pository institution.’’; and 

17 (9) in paragraph (6)—

18 (A) by striking ‘‘depository institution 

19 holding company’’ and inserting ‘‘covered com20 pany,’’; and 

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

22 inserting ‘‘or covered company’’. 
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•HR 1375 IH 

1 SEC. 409. AMENDMENTS RELATING TO CHANGE IN BANK 

2 CONTROL. 

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

4 U.S.C. 1817(j)) is amended—

5 (1) in paragraph (1)(D)—

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

7 and inserting ‘‘is needed—

8 ‘‘(i) to investigate’’; 

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

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

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

12 clause: 

13 ‘‘(ii) to analyze the safety and sound14 ness of any plans or proposals described in 

15 paragraph (6)(E) or the future prospects 

16 of the institution.’’; and 

17 (2) in paragraph (7)(C), by striking ‘‘the finan18 cial condition of any acquiring person’’ and inserting 

19 ‘‘either the financial condition of any acquiring per20 son or the future prospects of the institution’’.
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1 TITLE V—DEPOSITORY INSTITU2 TION AFFILIATES PROVI3 SIONS 

4 SEC. 501. CLARIFICATION OF CROSS MARKETING PROVI5 SION. 

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

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

8 (1) in subparagraph (B), by striking ‘‘sub9 section (k)(4)(I)’’ and inserting ‘‘subparagraph (H) 

10 or (I) of subsection (k)(4)’’; and 

11 (2) by adding at the end the following new sub12 paragraph: 

13 ‘‘(C) THRESHOLD OF CONTROL.—Subpara14 graph (A) shall not apply with respect to a 

15 company described or referred to in clause (i) 

16 or (ii) of such subparagraph if the financial 

17 holding company does not own or control 25 

18 percent or more of the total equity or any class 

19 of voting securities of such company.’’. 

20 SEC. 502. AMENDMENT TO PROVIDE THE FEDERAL RE21 SERVE BOARD WITH DISCRETION CON22 CERNING THE IMPUTATION OF CONTROL OF 

23 SHARES OF A COMPANY BY TRUSTEES. 

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

25 of 1956 (12 U.S.C. 1841(g)(2)) is amended by inserting 
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•HR 1375 IH 

1 ‘‘, unless the Board determines that such treatment is not 

2 appropriate in light of the facts and circumstances of the 

3 case and the purposes of this Act’’ before the period at 

4 the end. 

5 SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON THRIFT 

6 SERVICE COMPANIES. 

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

8 5(c)(4)(B) of the Home Owners’ Loan Act (12 U.S.C. 

9 1464(c)(4)(B)) (as amended by section 406(b)(3) of this 

10 Act) is amended—

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

12 that follows through ‘‘is available for purchase’’ and 

13 inserting ‘‘company, if the entire capital of the com14 pany is available for purchase’’; and 

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

16 such State’’. 

17 (b) TECHNICAL CORRECTIONS.—

18 (1) The heading for subparagraph (B) of sec19 tion 5(c)(4) of the Home Owners’ Loan Act (12 

20 U.S.C. 1464(c)(4)(B)) is amended by striking ‘‘COR21 PORATIONS’’ and inserting ‘‘COMPANIES’’. 

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

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

24 amended by striking ‘‘service corporations’’ and in25 serting ‘‘service companies’’. 
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1 (3) Section 5(q)(1) of the Home Owners’ Loan 

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

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

4 in subparagraphs (A), (B), and (C) and inserting 

5 ‘‘service company’’. 

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

7 Owners’ Loan Act (12 U.S.C. 

8 1467a(m)(4)(C)(iii)(II)) is amended by striking 

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

10 and inserting ‘‘service company’’. 

11 SEC. 504. CLARIFICATION OF SCOPE OF APPLICABLE RATE 

12 PROVISION. 

13 Section 44(f) of the Federal Deposit Insurance Act 

14 (12 U.S.C. 1831u(f)) is amended by adding at the end 

15 the following new paragraphs: 

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

17 other lender doing business in the State described in 

18 paragraph (1), the maximum interest rate or 

19 amount of interest, discount points, finance charges, 

20 or other similar charges that may be charged, taken, 

21 received, or reserved from time to time in any loan, 

22 discount, or credit sale made, or upon any note, bill 

23 of exchange, financing transaction, or other evidence 

24 of debt issued to or acquired by any other lender 

25 shall be equal to not more than the greater of the 
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1 rates described in subparagraph (A) or (B) of para2 graph (1). 

3 ‘‘(4) OTHER LENDER DEFINED.—For purposes 

4 of paragraph (3), the term ‘other lender’ means any 

5 person engaged in the business of selling or financ6 ing the sale of personal property (and any servicers 

7 incidental to the sale of personal property) in such 

8 State, except that, with regard to any person or en9 tity described in such paragraph, such term does not 

10 include—

11 ‘‘(A) an insured depository institution; or 

12 ‘‘(B) any person or entity engaged in the 

13 business of providing a short-term case advance 

14 to any consumer in exchange for—

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

16 share draft, in the amount of the advance 

17 plus a fee, where presentment or negotia18 tion of such check or share draft is de19 ferred by agreement of the parties until a 

20 designated future date; or 

21 ‘‘(ii) a consumer authorization to 

22 debit the consumer’s transaction account, 

23 in the amount of the advance plus a fee, 

24 where such account will be debited on or 

25 after a designated future date.’’. 
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1 TITLE VI—BANKING AGENCY 

2 PROVISIONS 

3 SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER 

4 TO ALLOCATE EXAMINER RESOURCES. 

5 Section 10(d) of the Federal Deposit Insurance Act 

6 (12 U.S.C. 1820(d)) is amended—

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

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

9 (10), and (11), respectively; 

10 (2) by inserting after paragraph (4), the fol11 lowing new paragraph: 

12 ‘‘(5) WAIVER OF SCHEDULE WHEN NECESSARY

13 TO ACHIEVE SAFE AND SOUND ALLOCATION OF EX14 AMINER RESOURCES.—Notwithstanding paragraphs 

15 (1), (2), (3), and (4), an appropriate Federal bank16 ing agency may make adjustments in the examina17 tion cycle for an insured depository institution if 

18 necessary to allocate available resources of exam19 iners in a manner that provides for the safety and 

20 soundness of, and the effective examination and su21 pervision of, insured depository institutions.’’; and 

22 (3) in paragraphs (8) and (9), as so redesig23 nated, by striking ‘‘paragraph (6)’’ and inserting 

24 ‘‘paragraph (7)’’.
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1 SEC. 602. INTERAGENCY DATA SHARING. 

2 (a) FEDERAL BANKING AGENCIES.—Section 7(a)(2) 

3 of the Federal Deposit Insurance Act (12 U.S.C. 

4 1817(a)(2)) is amended by adding at the end the following 

5 new subparagraph: 

6 ‘‘(C) DATA SHARING WITH OTHER AGEN7 CIES AND PERSONS.—In addition to reports of 

8 examination, reports of condition, and other re9 ports required to be regularly provided to the 

10 Corporation (with respect to all insured deposi11 tory institutions, including a depository institu12 tion for which the Corporation has been ap13 pointed conservator or receiver) or an appro14 priate State bank supervisor (with respect to a 

15 State depository institution) under subpara16 graph (A) or (B), a Federal banking agency 

17 may, in the agency’s discretion, furnish any re18 port of examination or other confidential super19 visory information concerning any depository 

20 institution or other entity examined by such 

21 agency under authority of any Federal law, 

22 to—

23 ‘‘(i) any other Federal or State agen24 cy or authority with supervisory or regu25 latory authority over the depository institu26 tion or other entity; 
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1 ‘‘(ii) to any officer, director, or re2 ceiver of such depository institution or en3 tity; and 

4 ‘‘(iii) any other person the Federal 

5 banking agency determines to be appro6 priate.’’. 

7 (b) NATIONAL CREDIT UNION ADMINISTRATION.—

8 Section 202(a) of the Federal Credit Union Act (12 

9 U.S.C. 1782(a)) is amended by adding at the end the fol10 lowing new paragraph: 

11 ‘‘(8) DATA SHARING WITH OTHER AGENCIES

12 AND PERSONS.—In addition to reports of examina13 tion, reports of condition, and other reports required 

14 to be regularly provided to the Board (with respect 

15 to all insured credit unions, including a credit union 

16 for which the Corporation has been appointed con17 servator or liquidating agent) or an appropriate

18 State commission, board, or authority having super19 vision of a State-chartered credit union, the Board 

20 may, in the Board’s discretion, furnish any report 

21 of examination or other confidential supervisory in22 formation concerning any credit union or other enti23 ty examined by the Board under authority of any 

24 Federal law, to—
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•HR 1375 IH 

1 ‘‘(A) any other Federal or State agency or 

2 authority with supervisory or regulatory author3 ity over the credit union or other entity; 

4 ‘‘(B) to any officer, director, or receiver of 

5 such credit union or entity; and 

6 ‘‘(C) any other institution-affiliated party 

7 of such credit union or entity the Board deter8 mines to be appropriate.’’. 

9 SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION 

10 BY CONVICTED INDIVIDUAL. 

11 Section 19 of the Federal Deposit Insurance Act (12 

12 U.S.C. 1829) is amended by adding at the end the fol13 lowing new subsection: 

14 ‘‘(c) NONINSURED BANKS.—Subsections (a) and (b) 

15 shall apply to a noninsured national bank and a non16 insured State member bank, and any agency or non17 insured branch (as such terms are defined in section 1(b) 

18 of the International Banking Act of 1978) of a foreign 

19 bank as if such bank, branch, or agency were an insured 

20 depository institution, except such subsections shall be ap21 plied for purposes of this subsection by substituting the 

22 agency determined under the following paragraphs for 

23 ‘Corporation’ each place such term appears in such sub24 sections: 
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•HR 1375 IH 

1 ‘‘(1) The Comptroller of the Currency, in the 

2 case of a noninsured national bank or any Federal 

3 agency or noninsured Federal branch of a foreign 

4 bank. 

5 ‘‘(2) The Board of Governors of the Federal 

6 Reserve System, in the case of a noninsured State 

7 member bank or any State agency or noninsured 

8 State branch of a foreign bank.’’. 

9 SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF 

10 OLD RECORDS OF A DEPOSITORY INSTITU11 TION BY THE FDIC AFTER THE APPOINTMENT 

12 OF THE FDIC AS RECEIVER. 

13 Section 11(d)(15)(D) of the Federal Deposit Insur14 ance Act (12 U.S.C. 1821(d)(15)(D)) is amended—

15 (1) by striking ‘‘RECORDKEEPING REQUIRE16 MENT.—After the end of the 6-year period’’ and in17 serting ‘‘RECORDKEEPING REQUIREMENT.—

18 ‘‘(i) IN GENERAL.—Except as pro19 vided in clause (ii), after the end of the 6-

20 year period’’; and 

21 (2) by adding at the end the following new 

22 clause: 

23 ‘‘(ii) OLD RECORDS.—In the case of 

24 records of an insured depository institution 

25 which are at least 10 years old as of the 
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1 date the Corporation is appointed as the 

2 receiver of such depository institution, the 

3 Corporation may destroy such records in 

4 accordance with clause (i) any time after 

5 such appointment is final without regard 

6 to the 6-year period of limitation contained 

7 in such clause.’’. 

8 SEC. 605. MODERNIZATION OF FDIC RECORDKEEPING RE9 QUIREMENT. 

10 Subsection (f) of section 10 of the Federal Deposit 

11 Insurance Act (12 U.S.C. 1820(f)) is amended to read as 

12 follows: 

13 ‘‘(f) PRESERVATION OF AGENCY RECORDS.—

14 ‘‘(1) IN GENERAL.—The Corporation may cause 

15 any and all records, papers, or documents kept by 

16 the Corporation or in the possession or custody of 

17 the Corporation to be—

18 ‘‘(A) photographed or microphotographed 

19 or otherwise reproduced upon film; or 

20 ‘‘(B) preserved in any electronic medium 

21 or format which is capable of—

22 ‘‘(i) being read or scanned by com23 puter; and 

24 ‘‘(ii) being reproduced from such elec25 tronic medium or format by printing or 
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1 any other form of reproduction of elec2 tronically stored data. 

3 ‘‘(2) TREATMENT AS ORIGINAL RECORDS.—Any 

4 photographs, microphotographs, or photographic 

5 film or copies thereof described in paragraph (1)(A)

6 or reproduction of electronically stored data de7 scribed in paragraph (1)(B) shall be deemed to be 

8 an original record for all purposes, including intro9 duction in evidence in all State and Federal courts 

10 or administrative agencies and shall be admissible to 

11 prove any act, transaction, occurrence, or event 

12 therein recorded. 

13 ‘‘(3) AUTHORITY OF THE BOARD OF DIREC14 TORS.—Any photographs, microphotographs, or pho15 tographic film or copies thereof described in para16 graph (1)(A) or reproduction of electronically stored 

17 data described in paragraph (1)(B) shall be pre18 served in such manner as the Board of Directors 

19 shall prescribe and the original records, papers, or 

20 documents may be destroyed or otherwise disposed 

21 of as the Board of Directors may direct.’’.
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1 SEC. 606. CLARIFICATION OF EXTENT OF SUSPENSION, RE2 MOVAL, AND PROHIBITION AUTHORITY OF 

3 FEDERAL BANKING AGENCIES IN CASES OF 

4 CERTAIN CRIMES BY INSTITUTION-AFFILI5 ATED PARTIES. 

6 (a) INSURED DEPOSITORY INSTITUTION.—

7 (1) IN GENERAL.—Section 8(g)(1) of the Fed8 eral Deposit Insurance Act (12 U.S.C. 1818(g) is 

9 amended—

10 (A) in subparagraph (A), by striking ‘‘the 

11 depository’’ each place such term appears and 

12 inserting ‘‘any depository’’; 

13 (B) in subparagraph (B)(i), by inserting 

14 ‘‘of which the subject of the order is an institu15 tion-affiliated party’’ before the period at the 

16 end; 

17 (C) in subparagraph (C), by striking ‘‘the 

18 depository’’ each place such term appears and 

19 inserting ‘‘any depository’’; 

20 (D) in subparagraph (D)(i), by inserting 

21 ‘‘of which the subject of the order is an institu22 tion-affiliated party’’ after ‘‘upon the depository 

23 institution’’; and 

24 (E) by adding at the end the following new 

25 subparagraph: 
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•HR 1375 IH 

1 ‘‘(E) CONTINUATION OF AUTHORITY.—A 

2 Federal banking agency may issue an order 

3 under this paragraph with respect to an indi4 vidual who is an institution-affiliated party at a 

5 depository institution at the time of an offense 

6 described in subparagraph (A) without regard 

7 to—

8 ‘‘(i) whether such individual is an in9 stitution-affiliated party at any depository 

10 institution at the time the order is consid11 ered or issued by the agency; or 

12 ‘‘(ii) whether the depository institu13 tion at which the individual was an institu14 tion-affiliated party at the time of the of15 fense remains in existence at the time the 

16 order is considered or issued by the agen17 cy.’’. 

18 (2) CLERICAL AMENDMENT.—Section 8(g) of 

19 the Federal Deposit Insurance Act (12 U.S.C. 

20 1818(g) is amended by striking ‘‘(g)’’ and inserting 

21 the following new subsection heading: 

22 ‘‘(g) SUSPENSION, REMOVAL, AND PROHIBITION

23 FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN

24 CRIMINAL OFFENSES.—’’. 

25 (b) INSURED CREDIT UNIONS.—
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1 (1) IN GENERAL.—Section 206(i)(1) of the 

2 Federal Credit Union Act (12 U.S.C. 1786(i)(1)) is 

3 amended—

4 (A) in subparagraph (A), by striking ‘‘the 

5 credit union’’ each place such term appears and 

6 inserting ‘‘any credit union’’; 

7 (B) in subparagraph (B)(i), by inserting 

8 ‘‘of which the subject of the order is, or most 

9 recently was, an institution-affiliated party’’ be10 fore the period at the end; 

11 (C) in subparagraph (C), by striking ‘‘the 

12 credit union’’ each place such term appears and 

13 inserting ‘‘any credit union’’; 

14 (D) in subparagraph (D)(i), by striking 

15 ‘‘upon such credit union’’ and inserting ‘‘upon 

16 the credit union of which the subject of the 

17 order is, or most recently was, an institution-af18 filiated party’’; and 

19 (E) by adding at the end the following new 

20 subparagraph: 

21 ‘‘(E) CONTINUATION OF AUTHORITY.—The 

22 Board may issue an order under this paragraph 

23 with respect to an individual who is an institu24 tion-affiliated party at a credit union at the 
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•HR 1375 IH 

1 time of an offense described in subparagraph 

2 (A) without regard to—

3 ‘‘(i) whether such individual is an in4 stitution-affiliated party at any credit 

5 union at the time the order is considered 

6 or issued by the Board; or 

7 ‘‘(ii) whether the credit union at 

8 which the individual was an institution-af9 filiated party at the time of the offense re10 mains in existence at the time the order is 

11 considered or issued by the Board.’’. 

12 (2) CLERICAL AMENDMENT.—Section 206(i) of 

13 the Federal Credit Union Act (12 U.S.C. 1786(i)) is 

14 amended by striking ‘‘(i)’’ at the beginning and in15 serting the following new subsection heading: 

16 ‘‘(i) SUSPENSION, REMOVAL, AND PROHIBITION

17 FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN

18 CRIMINAL OFFENSES.—’’.

19 SEC. 607. STREAMLINING DEPOSITORY INSTITUTION MERG20 ER APPLICATION REQUIREMENTS. 

21 (a) IN GENERAL.—Paragraph (4) of section 18(c) of 

22 the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) 

23 is amended to read as follows: 

24 ‘‘(4) REPORTS ON COMPETITIVE FACTORS.—
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1 ‘‘(A) REQUEST FOR REPORT.—In the in2 terests of uniform standards, before acting on 

3 any application for approval of a merger trans4 action, the responsible agency, unless the agen5 cy finds that it must act immediately in order 

6 to prevent the probable failure of a depository 

7 institution involved, shall—

8 ‘‘(i) request a report on the competi9 tive factors involved from the Attorney 

10 General; and 

11 ‘‘(ii) provide a copy of the request to 

12 the Corporation (when the Corporation is 

13 not the responsible agency). 

14 ‘‘(B) FURNISHING OF REPORT.—The re15 port requested under subparagraph (A) shall be 

16 furnished by the Attorney General to the re17 sponsible agency—

18 ‘‘(i) not more than 30 calendar days 

19 after the date on which the Attorney Gen20 eral received the request; or 

21 ‘‘(ii) not more than 10 calendar days 

22 after such date, if the requesting agency 

23 advises the Attorney General that an emer24 gency exists requiring expeditious action.’’.
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1 (b) TECHNICAL AND CONFORMING AMENDMENT.—

2 The penultimate sentence of section 18(c)(6) of the Fed3 eral Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is 

4 amended to read as follows: ‘‘If the agency has advised 

5 the Attorney General under paragraph (4)(B) of the exist6 ence of an emergency requiring expeditious action and has 

7 requested a report on the competitive factors within 10 

8 days, the transaction may not be consummated before the 

9 fifth calendar day after the date of approval by the agen10 cy.’’. 

11 SEC. 608. INCLUSION OF DIRECTOR OF THE OFFICE OF 

12 THRIFT SUPERVISION IN LIST OF BANKING 

13 AGENCIES REGARDING INSURANCE CUS14 TOMER PROTECTION REGULATIONS. 

15 Section 47(g)(2)(B)(i) of the Federal Deposit Insur16 ance Act (12 U.S.C. 1831x(g)(2)(B)(i)) is amended by in17 serting ‘‘the Director of the Office of Thrift Supervision,’’ 

18 after ‘‘Comptroller of the Currency,’’. 

19 SEC. 609. SHORTENING OF POST-APPROVAL ANTITRUST RE20 VIEW PERIOD WITH THE AGREEMENT OF THE 

21 ATTORNEY GENERAL. 

22 (a) ANTITRUST REVIEWS UNDER THE BANK HOLD23 ING COMPANY ACT OF 1956.—The 4th sentence of section 

24 11(b) of the Bank Holding Company Act of 1956 (12 
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1 U.S.C. 1849(b) is amended by striking ‘‘15 calendar 

2 days’’ and inserting ‘‘5 calendar days’’. 

3 (b) ANTITRUST REVIEWS UNDER THE FEDERAL DE4 POSIT INSURANCE ACT.—The last sentence of section 

5 18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 

6 1828(c)(6)) is amended by striking ‘‘15 calendar days’’ 

7 and inserting ‘‘5 calendar days’’. 

8 SEC. 610. PROTECTION OF CONFIDENTIAL INFORMATION 

9 RECEIVED BY FEDERAL BANKING REGU10 LATORS FROM FOREIGN BANKING SUPER11 VISORS. 

12 Section 15 of the International Banking Act of 1978 

13 (12 U.S.C. 3109) is amended by adding at the end the 

14 following new subsection: 

15 ‘‘(c) CONFIDENTIAL INFORMATION RECEIVED FROM

16 FOREIGN SUPERVISORS.—

17 ‘‘(1) IN GENERAL.—Except as provided in 

18 paragraph (3), a Federal banking agency may not be 

19 compelled to disclose information received from a 

20 foreign regulatory or supervisory authority if—

21 ‘‘(A) the foreign regulatory or supervisory 

22 authority has, in good faith, determined and 

23 represented to such Federal banking agency 

24 that public disclosure of the information would 
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1 violate the laws applicable to that foreign regu2 latory or supervisory authority; and 

3 ‘‘(B) the relevant Federal banking agency 

4 obtained such information pursuant to—

5 ‘‘(i) such procedures as the Federal 

6 banking agencies may establish for use in 

7 connection with the administration and en8 forcement of Federal banking laws; or 

9 ‘‘(ii) a memorandum of understanding 

10 or other similar arrangement between the 

11 Federal banking agency and the foreign 

12 regulatory or supervisory authority. 

13 ‘‘(2) TREATMENT UNDER TITLE 5, UNITED

14 STATES CODE.—For purposes of section 552 of title 

15 5, United States Code, this subsection shall be treat16 ed as a statute described in subsection (b)(3)(B) of 

17 such section. 

18 ‘‘(3) SAVINGS PROVISION.—No provision of this 

19 section shall be construed as—

20 ‘‘(A) authorizing any Federal banking 

21 agency to withhold any information from any 

22 duly authorized committee of the House of Rep23 resentatives or the Senate; or 

24 ‘‘(B) preventing any Federal banking 

25 agency from complying with an order of a court 
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1 of the United States in an action commenced by 

2 the United States or such agency. 

3 ‘‘(4) FEDERAL BANKING AGENCY DEFINED.—

4 For purposes of this subsection, the term ‘Federal 

5 banking agency’ means the Board, the Comptroller, 

6 the Federal Deposit Insurance Corporation, and the 

7 Director of the Office of Thrift Supervision.’’. 

8 SEC. 611. PROHIBITION ON THE PARTICIPATION IN THE AF9 FAIRS OF BANK HOLDING COMPANY OR EDGE 

10 ACT OR AGREEMENT CORPORATIONS BY 

11 CONVICTED INDIVIDUAL. 

12 Section 19 of the Federal Deposit Insurance Act (12 

13 U.S.C. 1829) is amended by inserting after subsection (c) 

14 (as added by section 604 of this title) the following new 

15 subsection: 

16 ‘‘(c) BANK HOLDING COMPANIES.—Subsections (a) 

17 and (b) shall apply to any bank holding company any sub18 sidiary (other than a bank) of a bank holding company 

19 and any organization organized and operated under sec20 tion 25A of the Federal Reserve Act or operating under 

21 section 25 of the Federal Reserve Act as if such bank 

22 holding company, subsidiary, or organization were an in23 sured depository institution, except such subsections shall 

24 be applied for purposes of this subsection by substituting 

25 ‘‘Board of Governors of the Federal Reserve System’’ for 
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1 ‘‘Corporation’’ each place such term appears in such sub2 sections.’’. 

3 SEC. 612. CLARIFICATION THAT NOTICE AFTER SEPARA4 TION FROM SERVICE MAY BE MADE BY AN 

5 ORDER. 

6 Section 8(i)(3) of the Federal Deposit Insurance Act 

7 (12 U.S.C. 1818(i)(3)) is amended by inserting ‘‘or order’’ 

8 after ‘‘notice’’ each place such term appears. 

9 SEC. 613. EXAMINERS OF FINANCIAL INSTITUTIONS. 

10 (a) OFFER OF CREDIT TO BANK EXAMINER.—Sec11 tion 212 of title 18, United States Code, is amended to 

12 read as follows: 

13 ‘‘§ 212. Offer of credit to bank examiner 

14 ‘‘(a) Subject to section 213(b), whoever being an offi15 cer, director or employee of a financial institution extends 

16 credit to any examiner which the examiner is prohibited 

17 from accepting under section 213 shall be fined under this 

18 title or imprisoned not more than one year, or both; and 

19 may be fined a further sum equal to the money so loaned 

20 or gratuity given. 

21 ‘‘(b) For purposes of this section, the following defini22 tions shall apply: 

23 ‘‘(1) The term ‘financial institution’ does not 

24 include a credit union. 

25 ‘‘(2) The term ‘examiner’ means any person—
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1 ‘‘(A) appointed by a Federal financial in2 stitution regulatory agency or pursuant to the 

3 laws of any State to examine a financial institu4 tion; or 

5 ‘‘(B) elected under the law of any State to 

6 conduct examinations of any financial institu7 tion. 

8 ‘‘(3) The term ‘Federal financial institution 

9 regulatory agency’ means—

10 ‘‘(A) the Comptroller of the Currency; 

11 ‘‘(B) the Board of Governors of the Fed12 eral Reserve System; 

13 ‘‘(C) the Director of the Office of Thrift 

14 Supervision; 

15 ‘‘(D) the Federal Deposit Insurance Cor16 poration; 

17 ‘‘(E) the Federal Housing Finance Board; 

18 ‘‘(F) the Farm Credit Administration; 

19 ‘‘(G) the Farm Credit System Insurance 

20 Corporation; and 

21 ‘‘(H) the Small Business Administration.’’. 

22 (b) ACCEPTANCE OF CREDIT BY A BANK EXAM23 INER.—Section 213 of title 18, United States Code, is 

24 amended to read as follows: 
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1 ‘‘§ 213. Acceptance of credit by bank examiner 

2 ‘‘(a) Whoever, being an examiner, accepts an exten3 sion of credit from any financial institution that the exam4 iner examines or has authority to examine, or from any 

5 person connected with any such financial institution, shall 

6 be fined under this title or imprisoned not more than one 

7 year, or both; and may be fined a further sum equal to 

8 the money so loaned or gratuity given, and shall be dis9 qualified from holding office as such examiner. 

10 ‘‘(b) Notwithstanding subsection (a) or section 212, 

11 a Federal financial institution regulatory agency may, by 

12 regulation or by order on a case-by-case basis, permit a 

13 financial institution to extend credit to an examiner, and 

14 permit an examiner to accept an extension of credit from 

15 a financial institution, if the agency determines that the 

16 extension of credit would not likely affect the integrity of 

17 any examination of a financial institution. Before pre18 scribing regulations or issuing any order under this sub19 section, a Federal financial institution regulatory agency 

20 shall consult with each other Federal financial institution 

21 regulatory agency with regard to any such regulation or 

22 order. Any regulation prescribed by a Federal financial in23 stitution regulatory agency under this subsection, may ex24 empt certain classes or categories of credit from the scope 

25 of this section or section 212, and shall provide procedures 

26 for examiners and financial institutions to request case-
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1 by-case exemption orders under this subsection, subject to 

2 subsection (c). 

3 ‘‘(c) In considering any request by a financial institu4 tion or examiner for a case-by-case exemption order under 

5 subsection (b), a Federal financial institution regulatory 

6 agency shall consider such factors as the agency determine 

7 to be appropriate, including—

8 ‘‘(1) whether the terms and conditions of the 

9 credit being offered the examiner are generally com10 parable to those offered by the financial institution 

11 in connection with similar types of credit extended 

12 to other customers in similar circumstances; 

13 ‘‘(2) the nature and extent of any other rela14 tionship the examiner has with the financial institu15 tion or any officer, director, or employee of the fi16 nancial institution; 

17 ‘‘(3) the proximity in time between any exam18 ination of the financial institution in which the ex19 aminer participated, or is scheduled to participate, 

20 and the extension, or the offer of an extension, of 

21 credit; 

22 ‘‘(4) whether there are any other circumstances 

23 involving the transaction, or the proposed trans24 action, that may be perceived as providing the exam25 iner with preferential treatment; and 
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1 ‘‘(5) any other fact or circumstance the agency 

2 may consider to be appropriate under the cir3 cumstances. 

4 ‘‘(d) Notwithstanding subsection (a) or section 212, 

5 an examiner employed by a Federal financial institution 

6 regulatory agency may apply for and receive a credit card, 

7 or otherwise be approved as a credit cardholder, under any 

8 credit card account under an open end consumer credit 

9 plan, to the extent the terms and conditions applicable 

10 with respect to such account, and any credit extended 

11 under such account, are no more favorable generally to 

12 the examiner than the terms and conditions that are gen13 erally applicable to credit card accounts offered by the 

14 same financial institution to other cardholders under open 

15 end consumer credit plans. 

16 ‘‘(e) For purposes of this section, the following defini17 tions shall apply: 

18 ‘‘(1) The terms ‘examiner’, ‘Federal financial 

19 institution regulatory agency’, and ‘financial institu20 tion’ have the same meaning as in section 212. 

21 ‘‘(2) The term ‘credit’ means the right granted 

22 by a creditor to a debtor to defer payment of debt 

23 or to incur debt and defer its payment. 

24 ‘‘(3) The term ‘creditor’ refers only to a person 

25 who both (A) regularly extends, whether in connec-
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1 tion with loans, sales of property or services, or oth2 erwise, consumer credit which is payable by agree3 ment in more than four installments or for which 

4 the payment of a finance charge is or may be re5 quired, and (B) is the person to whom the debt aris6 ing from the consumer credit transaction is initially 

7 payable on the face of the evidence of indebtedness 

8 or, if there is no such evidence of indebtedness, by 

9 agreement. Notwithstanding the preceding sentence, 

10 in the case of an open-end credit plan involving a 

11 credit card, the card issuer and any person who hon12 ors the credit card and offers a discount which is a 

13 finance charge are creditors. 

14 ‘‘(4) The term ‘consumer’, when used with ref15 erence to an open end credit plan, means a credit 

16 plan under which the party to whom credit is offered 

17 or extended is a natural person, and the money, 

18 property, or services which are the subject of any 

19 transaction under the plan are primarily for per20 sonal, family, or household purposes. 

21 ‘‘(5) The term ‘open end credit plan’ means a 

22 plan under which the creditor reasonably con23 templates repeated transactions, which prescribes 

24 the terms of such transactions, and which provides 

25 for a finance charge which may be computed from
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1 time to time on the outstanding unpaid balance. A 

2 credit plan which is an open end credit plan within 

3 the meaning of the preceding sentence is an open 

4 end credit plan even if credit information is verified 

5 from time to time. 

6 ‘‘(6) The term ‘credit card’ means any card, 

7 plate, coupon book or other credit device existing for 

8 the purpose of obtaining money, property, labor, or 

9 services on credit. 

10 ‘‘(7) The term ‘cardholder’ means any person to 

11 whom a credit card is issued or any person who has 

12 agreed with the card issuer to pay obligations aris13 ing from the issuance of a credit card to another 

14 person. 

15 ‘‘(8) The term ‘card issuer’ means any person 

16 who issues a credit card, or the agent of such person 

17 with respect to such card.’’. 

18 (c) CLERICAL AMENDMENTS.—The table of sections 

19 for chapter 11 of title 18, United States Code, is amended 

20 by striking the items relating to sections 212 and 213 and 

21 inserting the following new items:

‘‘212. Offer of credit to bank examiner. 

‘‘213. Acceptance of credit by bank examiner.’’.
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1 SEC. 614. PARITY IN STANDARDS FOR INSTITUTION-AFFILI2 ATED PARTIES. 

3 Section 3(u)(4) of the Federal Deposit Insurance Act 

4 (12 U.S.C. 1813(u)(4)) is amended by striking ‘‘know5 ingly or recklessly’’. 

6 SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS 

7 REGARDING FDIC DEPOSIT INSURANCE COV8 ERAGE. 

9 (a) IN GENERAL.—Section 8 of the Federal Deposit 

10 Insurance Act (12 U.S.C. 1818) is amended by adding at 

11 the end the following new subsection: 

12 ‘‘(x) MISREPRESENTATION REGARDING DEPOSIT IN13 SURANCE COVERAGE.—

14 ‘‘(1) IN GENERAL.—Any person who knowingly 

15 violates the third undesignated paragraph of section 

16 709 of title 18, United States Code, shall be liable 

17 to the United States Government for a civil penalty 

18 in an amount not to exceed $1,000,000 for each day 

19 during which such violation occurs or continues. 

20 ‘‘(2) TIME LIMITATIONS FOR ASSESSMENTS

21 AND COMMENCEMENT OF CIVIL ACTIONS.—

22 ‘‘(A) ASSESSMENTS.—The Corporation 

23 may assess a civil penalty under paragraph (1) 

24 at any time before the end of the 6-year period 

25 beginning on the later of—

26 ‘‘(i) the date the violation occurred; or 
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1 ‘‘(ii) in the case of a continuing viola2 tion, the last day the continuing violation 

3 occurred. 

4 ‘‘(B) CIVIL ACTIONS.—The Corporation 

5 may commence a civil action to recover a civil 

6 penalty assessed under this subsection at any 

7 time before the end of the 2-year period begin8 ning on the later of—

9 ‘‘(i) the date the penalty was assessed; 

10 or 

11 ‘‘(ii) the date any judgment becomes 

12 final in any criminal action under section 

13 709 of title 18, United States Code, in 

14 connection with the same violation with re15 spect to which the penalty is assessed. 

16 ‘‘(3) CRIMINAL PENALTY NOT EXCLUSIVE OF

17 CIVIL PENALTY.—A civil money penalty may be im18 posed under this subsection with respect to any vio19 lation of the third undesignated paragraph of section 

20 709 of title 18, United States Code, notwithstanding 

21 the fact that a criminal penalty is imposed with re22 spect to the same violation.’’. 
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1 SEC. 616. COMPENSATION OF FEDERAL HOME LOAN BANK 

2 DIRECTORS. 

3 Section 17(i) of the Federal Home Loan Bank Act 

4 (12 U.S.C. 1427(i)) is amended to read as follows: 

5 ‘‘(i) DIRECTORS’ COMPENSATION.—

6 ‘‘(1) IN GENERAL.—Each Federal home loan 

7 bank may pay the directors on the board of directors 

8 of the bank reasonable compensation for the time re9 quired of such directors, and reasonable expenses in10 curred by the directors, in connection with service on 

11 the board of directors, in accordance with resolutions 

12 adopted by the board of directors and subject to the 

13 approval of the Board. 

14 ‘‘(2) ANNUAL REPORT BY THE BOARD.—Infor15 mation regarding compensation and expenses paid 

16 by the Federal home loan banks to the directors on 

17 the boards of directors of the banks shall be included 

18 in the annual report submitted to the Congress by 

19 the Board pursuant to section 2B(d).’’.

20 TITLE VII—CLERICAL AND 

21 TECHNICAL AMENDMENTS 

22 SEC. 701. CLERICAL AMENDMENTS TO THE HOME OWNERS’ 

23 LOAN ACT. 

24 (a) AMENDMENT TO TABLE OF CONTENTS.—The 

25 table of contents in section 1 of the Home Owners’ Loan 

26 Act (12 U.S.C. 1461) is amended by striking the items 
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1 relating to sections 5 and 6 and inserting the following 

2 new items:

‘‘Sec. 5. Savings associations. 

‘‘Sec. 6. [Repealed.]’’.

3 (b) CLERICAL AMENDMENTS TO HEADINGS.—

4 (1) The heading for section 4(a) of the Home 

5 Owners’ Loan Act (12 U.S.C. 1463(a)) is amended 

6 by striking ‘‘(a) FEDERAL SAVINGS ASSOCIA7 TIONS.—’’ and inserting ‘‘(a) GENERAL RESPON8 SIBILITIES OF THE DIRECTOR.—’’. 

9 (2) The section heading for section 5 of the 

10 Home Owners’ Loan Act (12 U.S.C. 1464) is 

11 amended to read as follows: 

12 ‘‘SEC. 5. SAVINGS ASSOCIATIONS.’’. 

13 SEC. 702. TECHNICAL CORRECTIONS TO THE FEDERAL 

14 CREDIT UNION ACT. 

15 The Federal Credit Union Act (12 U.S.C. 1751 et 

16 seq.) is amended as follows: 

17 (1) In section 101(3), strike ‘‘and’’ after the 

18 semicolon. 

19 (2) In section 101(5), strike the terms ‘‘account 

20 account’’ and ‘‘account accounts’’ each place any 

21 such term appears and insert ‘‘account’’. 

22 (3) In section 107(a)(5)(E) (as so designated 

23 by section 303 of this Act), strike the period at the 

24 end and insert a semicolon.
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1 (4) In paragraphs (6) and (7) of section 107(a) 

2 (as so designated by section 303 of this Act), strike 

3 the period at the end and insert a semicolon. 

4 (5) In section 107(a)(7)(D) (as so designated 

5 by section 303 of this Act), strike ‘‘the Federal Sav6 ings and Loan Insurance Corporation or’’. 

7 (6) In section 107(a)(7)(E) (as so designated 

8 by section 303 of this Act), strike ‘‘the Federal 

9 Home Loan Bank Board,’’ and insert ‘‘the Federal 

10 Housing Finance Board,’’. 

11 (7) In section 107(a)(9) (as so designated by 

12 section 303 of this Act), strike ‘‘subchapter III’’ and 

13 insert ‘‘title III’’. 

14 (8) In section 107(a)(13) (as so designated by 

15 section 303 of this Act), strike the ‘‘and’’ after the 

16 semicolon at the end. 

17 (9) In section 109(c)(2)(i), strike ‘‘(12 U.S.C. 

18 4703(16))’’. 

19 (10) In section 120(h), strike ‘‘under the Act 

20 approved July 30, 1947 (6 U.S.C., secs. 6–13),’’ and 

21 insert ‘‘chapter 93 of title 31, United States Code,’’. 

22 (11) In section 201(b)(5), strike ‘‘section 116 

23 of’’. 

24 (12) In section 202(h)(3), strike ‘‘section 

25 207(c)(1)’’ and insert ‘‘section 207(k)(1)’’. 
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1 (13) In section 204(b), strike ‘‘such others pow2 ers’’ and insert ‘‘such other powers’’. 

3 (14) In section 206(e)(3)(D), strike ‘‘and’’ after 

4 the semicolon at the end. 

5 (15) In section 206(f)(1), strike ‘‘subsection 

6 (e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. 

7 (16) In section 206(g)(7)(D), strike ‘‘and sub8 section (1)’’. 

9 (17) In section 206(t)(2)(B), insert ‘‘regula10 tions’’ after ‘‘as defined in’’. 

11 (18) In section 206(t)(2)(C), strike ‘‘material 

12 affect’’ and insert ‘‘material effect’’. 

13 (19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ 

14 after the semicolon at the end. 

15 (20) In section 206A(a)(2)(A), strike ‘‘regulator 

16 agency’’ and insert ‘‘regulatory agency’’. 

17 (21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ 

18 after the semicolon at the end. 

19 (22) In section 207(c)(8)(D)(ii)(I), insert a 

20 closing parenthesis after ‘‘Act of 1934’’. 

21 (23) In the heading for subparagraph (A) of 

22 section 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. 

23 (24) In section 207(f)(3)(A), strike ‘‘category 

24 or claimants’’ and insert ‘‘category of claimants’’. 
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1 (25) In section 209(a)(8), strike the period at 

2 the end and insert a semicolon. 

3 (26) In section 216(n), insert ‘‘any action’’ be4 fore ‘‘that is required’’. 

5 (27) In section 304(b)(3), strike ‘‘the affairs or 

6 such credit union’’ and insert ‘‘the affairs of such 

7 credit union’’. 

8 (28) In section 310, strike ‘‘section 102(e)’’ and 

9 insert ‘‘section 102(d)’’. 

10 SEC. 703. OTHER TECHNICAL CORRECTIONS. 

11 Section 1306 of title 18, United States Code, is 

12 amended by striking ‘‘5136A’’ and inserting ‘‘5136B’’. 

13 SEC. 704. REPEAL OF OBSOLETE PROVISIONS OF THE BANK 

14 HOLDING COMPANY ACT OF 1956. 

15 (a) IN GENERAL.—Section 2 of the Bank Holding 

16 Company Act of 1956 (12 U.S.C. 1841) is amended—

17 (1) in subsection (c)(2), by striking subpara18 graphs (I) and (J); and 

19 (2) by striking subsection (m) and inserting the 

20 following new subsection: 

21 ‘‘(m) [Repealed]’’. 

22 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

23 Paragraphs (1) and (2) of section 4(h) of the Bank Hold24 ing Company Act of 1956 (12 U.S.C. 1843(h)) are each 
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1 amended by striking ‘‘(G), (H), (I), or (J) of section 

2 2(c)(2)’’ and inserting ‘‘(G), or (H) of section 2(c)(2)’’.

Æ