I 

109TH CONGRESS 

1ST SESSION H. R. 3505

To provide regulatory relief and improve productivity for insured depository 

institutions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 28, 2005

Mr. HENSARLING (for himself and Mr. MOORE of Kansas) 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 2005’’. 

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. Equal treatment for Federal agencies of foreign banks. 

Sec. 108. Maintenance of a Federal branch and a Federal agency in the same 

State. 

Sec. 109. Business organization flexibility for national banks. 

Sec. 110. Clarification of the main place of business of a national bank. 

Sec. 111. Capital equivalency deposits for Federal branches and agencies of foreign banks. 

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. Increase in limits on commercial real estate loans. 

Sec. 215. Repeal of one limit on loans to one borrower. 

Sec. 216. Savings association credit card banks. 

Sec. 217. Interstate acquisitions by S&L holding companies. 

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

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

Sec. 310. Credit union governance. 

Sec. 311. Providing the National Credit Union Administration with greater 

flexibility in responding to market conditions. 

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

Act. 

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

laws. 

Sec. 314. Clarification of definition of net worth under certain circumstances 

for purposes of prompt corrective action. 

Sec. 315. Amendments relating to nonfederally insured credit unions. 

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. 

Sec. 410. Community reinvestment credit for ESOPS and EWOCS. 

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. 

Sec. 505. Savings associations acting as agents for affiliated depository institutions. 

TITLE VI—BANKING AGENCY PROVISIONS 

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

Sec. 602. Interagency data sharing. 

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

Sec. 604. Amendment permitting the destruction of old records of a depository 

institution by the FDIC after the appointment of the FDIC as 

receiver. 

Sec. 605. Modernization of recordkeeping requirement. 

Sec. 606. Streamlining reports of condition. 

Sec. 607. Expansion of eligibility for 18-month examination schedule for community banks. 

Sec. 608. Short form reports of condition for certain community banks. 
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Sec. 609. Clarification of extent of suspension, removal, and prohibition authority of Federal banking agencies in cases of certain crimes by 

institution-affiliated parties. 

Sec. 610. Streamlining depository institution merger application requirements. 

Sec. 611. Inclusion of Director of the Office of Thrift Supervision in list of 

banking agencies regarding insurance customer protection regulations. 

Sec. 612. Protection of confidential information received by Federal banking 

regulators from foreign banking supervisors. 

Sec. 613. Prohibition on participation by convicted individual. 

Sec. 614. Clarification that notice after separation from service may be made 

by an order. 

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

Sec. 616. Changes required to small bank holding company policy statement on 

assessment of financial and managerial factors. 

Sec. 617. Exception to annual privacy notice requirement under the GrammLeach-Bliley Act. 

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

and women. 

Sec. 619. Coordination of State examination authority. 

Sec. 620. Nonwaiver of privileges. 

Sec. 621. Right to Financial Privacy Act of 1978 amendment. 

TITLE VII—‘‘BSA’’ COMPLIANCE BURDEN REDUCTION 

Sec. 701. Reform of the currency transaction report exemption system. 

Sec. 702. Reduction in inconsistencies in monetary transaction recordkeeping 

and reporting enforcement and examination requirements. 

Sec. 703. Additional reforms relating to monetary transaction and recordkeeping requirements applicable to financial institutions. 

Sec. 704. Study by Comptroller General. 

Sec. 705. Feasibility study required. 

TITLE VIII—CLERICAL AND TECHNICAL AMENDMENTS 

Sec. 801. Clerical amendments to the Home Owners’ Loan Act. 

Sec. 802. Technical corrections to the Federal Credit Union Act. 

Sec. 803. Other technical corrections. 

Sec. 804. 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: 
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1 ‘‘SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS. 

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

3 a national bank shall, during’’; 

4 (2) by striking ‘‘total number of directors. 

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

6 and inserting ‘‘total number of directors. 

7 ‘‘(b) INVESTMENT REQUIREMENT.—

8 ‘‘(1) IN GENERAL.—Every director of a na9 tional bank shall own, in his or her own right,’’; and 

10 (3) by adding at the end the following new 

11 paragraph: 

12 ‘‘(2) EXCEPTION FOR SUBORDINATED DEBT IN

13 CERTAIN CASES.—In lieu of the requirements of 

14 paragraph (1) relating to the ownership of capital 

15 stock in the national bank, the Comptroller of the 

16 Currency may, by regulation or order, permit an in17 dividual to serve as a director of a national bank 

18 that has elected, or notifies the Comptroller of the 

19 bank’s intention to elect, to operate as a S corpora20 tion pursuant to section 1362(a) of the Internal 

21 Revenue Code of 1986, if that individual holds debt 

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

23 is subordinated to the interests of depositors and 

24 other general creditors of the national bank.’’. 
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1 SEC. 102. VOTING IN SHAREHOLDER ELECTIONS. 

2 Section 5144 of the Revised Statutes of the United 

3 States (12 U.S.C. 61) is amended—

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

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

6 the national bank, to cumulate’’; 

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

8 shall equal’’; and 

9 (3) by adding at the end the following new sen10 tence: ‘‘The Comptroller of the Currency may pre11 scribe such regulations to carry out the purposes of 

12 this section as the Comptroller determines to be ap13 propriate.’’. 

14 SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS FOR NA15 TIONAL BANKS. 

16 (a) IN GENERAL.—Section 5199 of the Revised Stat17 utes of the United States (12 U.S.C. 60) is amended to 

18 read as follows: 

19 ‘‘SEC. 5199. NATIONAL BANK DIVIDENDS. 

20 ‘‘(a) IN GENERAL.—Subject to subsection (b), the di21 rectors of any national bank may declare a dividend of 

22 so much of the undivided profits of the bank as the direc23 tors judge to be expedient. 

24 ‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIR25 CUMSTANCES.—A national bank may not declare and pay 

26 dividends in any year in excess of an amount equal to the 
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1 sum of the total of the net income of the bank for that 

2 year and the retained net income of the bank in the pre3 ceding two years, minus any transfers required by the 

4 Comptroller of the Currency (including any transfers re5 quired to be made to a fund for the retirement of any 

6 preferred stock), unless the Comptroller of the Currency 

7 approves the declaration and payment of dividends in ex8 cess of such amount.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for chapter three of title LXII of the Revised Statutes of 

11 the United States is amended by striking the item relating 

12 to section 5199 and inserting the following new item:

‘‘5199.National bank dividends.’’.

13 SEC. 104. REPEAL OF OBSOLETE LIMITATION ON REMOVAL 

14 AUTHORITY OF THE COMPTROLLER OF THE 

15 CURRENCY. 

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

17 (12 U.S.C. 1818(e)(4)) is amended by striking the 5th 

18 sentence. 

19 SEC. 105. REPEAL OF INTRASTATE BRANCH CAPITAL RE20 QUIREMENTS. 

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

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

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

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

25 and 
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1 (2) by striking the last sentence. 

2 SEC. 106. CLARIFICATION OF WAIVER OF PUBLICATION RE3 QUIREMENTS FOR BANK MERGER NOTICES. 

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

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

6 215(a) and 215a(a)(2), respectively) are each amended by 

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

8 where the Comptroller determines that an emergency ex9 ists justifying such waiver, by unanimous action of the 

10 shareholders of the association or State bank’’ and insert11 ing ‘‘Publication of notice may be waived if the Comp12 troller determines that an emergency exists justifying such 

13 waiver or if the shareholders of the association or State 

14 bank agree by unanimous action to waive the publication 

15 requirement for their respective institutions’’. 

16 SEC. 107. EQUAL TREATMENT FOR FEDERAL AGENCIES OF 

17 FOREIGN BANKS. 

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

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

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

21 after ‘‘deposits’’. 

22 SEC. 108. MAINTENANCE OF A FEDERAL BRANCH AND A 

23 FEDERAL AGENCY IN THE SAME STATE. 

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

25 1978 (12 U.S.C. 3102(e)) is amended by inserting ‘‘if the 
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1 maintenance of both an agency and a branch in the State 

2 is prohibited under the law of such State’’ before the pe3 riod at the end. 

4 SEC. 109. BUSINESS ORGANIZATION FLEXIBILITY FOR NA5 TIONAL BANKS. 

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

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

8 seq.) is amended by inserting after section 5136B the fol9 lowing new section: 

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

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

12 may prescribe regulations—

13 ‘‘(1) to permit a national bank to be organized 

14 other than as a body corporate; and 

15 ‘‘(2) to provide requirements for the organiza16 tional characteristics of a national bank organized 

17 and operating other than as a body corporate, con18 sistent with the safety and soundness of the national 

19 bank. 

20 ‘‘(b) EQUAL TREATMENT.—Except as provided in 

21 regulations prescribed under subsection (a), a national 

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

23 have the same rights and privileges and shall be subject 

24 to the same duties, restrictions, penalties, liabilities, condi-
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1 tions, and limitations as a national bank that is organized 

2 as a body corporate.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.—

4 Section 5136 of the Revised Statutes of the United States 

5 (12 U.S.C. 24) is amended, in the matter preceding the 

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

7 other form of business organization provided under regula8 tions prescribed by the Comptroller of the Currency under 

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

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

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

12 the United States (12 U.S.C. 21 et seq.) is amended by 

13 inserting after the item relating to section 5136B the fol14 lowing new item:

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

15 SEC. 110. CLARIFICATION OF THE MAIN PLACE OF BUSI16 NESS OF A NATIONAL BANK. 

17 Title LXII of the Revised Statutes of the United 

18 States is amended—

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

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

21 place where its operations of discount and deposit 

22 are to be carried on’’ and inserting ‘‘The place 

23 where the main office of the national bank is, or is 

24 to be, located’’; and 
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1 (2) in section 5190 (12 U.S.C. 81), by striking 

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

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

4 SEC. 111. CAPITAL EQUIVALENCY DEPOSITS FOR FEDERAL 

5 BRANCHES AND AGENCIES OF FOREIGN 

6 BANKS. 

7 Section 4(g) of the International Banking Act of 

8 1978 (12 U.S.C. 3102(g)) is amended to read as follows: 

9 ‘‘(g) CAPITAL EQUIVALENCY DEPOSIT.—

10 ‘‘(1) IN GENERAL.—Upon the opening of a 

11 Federal branch or agency of a foreign bank in any 

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

13 any deposit requirements imposed under section 6, 

14 shall keep on deposit, in accordance with such regu15 lations as the Comptroller of the Currency may pre16 scribe in accordance with paragraph (2), dollar de17 posits, investment securities, or other assets in such 

18 amounts as the Comptroller of the Currency deter19 mines to be necessary for the protection of deposi20 tors and other investors and to be consistent with 

21 the principles of safety and soundness. 

22 ‘‘(2) LIMITATION.—Notwithstanding paragraph 

23 (1), regulations prescribed under such paragraph 

24 shall not permit a foreign bank to keep assets on de25 posit in an amount that is less than the amount re-
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1 quired for a State licensed branch or agency of a 

2 foreign bank under the laws and regulations of the 

3 State in which the Federal agency or branch is lo4 cated.’’. 

5 TITLE II—SAVINGS ASSOCIATION 

6 PROVISIONS 

7 SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE 

8 SECURITIES EXCHANGE ACT OF 1934 AND 

9 THE INVESTMENT ADVISERS ACT OF 1940. 

10 (a) SECURITIES EXCHANGE ACT OF 1934.—

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

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

13 78c(a)(6)) is amended—

14 (A) in subparagraph (A), by inserting ‘‘or 

15 a Federal savings association, as defined in sec16 tion 2(5) of the Home Owners’ Loan Act’’ after 

17 ‘‘a banking institution organized under the laws 

18 of the United States’’; and 

19 (B) in subparagraph (C)—

20 (i) by inserting ‘‘or savings associa21 tion as defined in section 2(4) of the Home 

22 Owners’ Loan Act,’’ after ‘‘banking insti23 tution,’’; and 
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1 (ii) by inserting ‘‘or savings associa2 tions’’ after ‘‘having supervision over 

3 banks’’. 

4 (2) INCLUDE OTS UNDER THE DEFINITION OF

5 APPROPRIATE REGULATORY AGENCY FOR CERTAIN

6 PURPOSES.—Section 3(a)(34) of such Act (15 

7 U.S.C. 78c(a)(34)) is amended—

8 (A) in subparagraph (A)—

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

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

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

12 clause (iii); 

13 (iii) by redesignating clause (iv) as 

14 clause (v); and 

15 (iv) by inserting the following new 

16 clause after clause (iii): 

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

18 Thrift Supervision, in the case of a savings 

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

20 the Federal Deposit Insurance Act (12 

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

22 insured by the Federal Deposit Insurance 

23 Corporation, a subsidiary or a department 

24 or division of any such savings association, 
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1 or a savings and loan holding company; 

2 and’’; 

3 (B) in subparagraph (B)—

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

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

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

7 clause (iii); 

8 (iii) by redesignating clause (iv) as 

9 clause (v); and 

10 (iv) by inserting the following new 

11 clause after clause (iii): 

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

13 Thrift Supervision, in the case of a savings 

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

15 the Federal Deposit Insurance Act (12 

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

17 insured by the Federal Deposit Insurance 

18 Corporation, or a subsidiary of any such 

19 savings association, or a savings and loan 

20 holding company; and’’; 

21 (C) in subparagraph (C)—

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

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

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

25 clause (iii); 
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1 (iii) by redesignating clause (iv) as 

2 clause (v); and 

3 (iv) by inserting the following new 

4 clause after clause (iii): 

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

6 Thrift Supervision, in the case of a savings 

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

8 the Federal Deposit Insurance Act (12 

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

10 insured by the Federal Deposit Insurance 

11 Corporation, a savings and loan holding 

12 company, or a subsidiary of a savings and 

13 loan holding company when the appro14 priate regulatory agency for such clearing 

15 agency is not the Commission; and’’; 

16 (D) in subparagraph (D)—

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

18 clause (ii); 

19 (ii) by redesignating clause (iii) as 

20 clause (iv); and 

21 (iii) by inserting the following new 

22 clause after clause (ii): 

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

24 Thrift Supervision, in the case of a savings 

25 association (as defined in section 3(b) of 
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1 the Federal Deposit Insurance Act (12 

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

3 insured by the Federal Deposit Insurance 

4 Corporation; and’’; 

5 (E) in subparagraph (F)—

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

7 and (iv) as clauses (iii), (iv), and (v), re8 spectively; and 

9 (ii) by inserting the following new 

10 clause after clause (i): 

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

12 Thrift Supervision, in the case of a savings 

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

14 the Federal Deposit Insurance Act (12 

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

16 insured by the Federal Deposit Insurance 

17 Corporation; and’’; 

18 (F) by moving subparagraph (H) and in19 serting such subparagraph after subparagraph 

20 (G); and 

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

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

23 ‘savings and loan holding company’ has the 

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

25 Owners’ Loan Act (12 U.S.C. 1467a(a)).’’. 
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1 (b) INVESTMENT ADVISERS ACT OF 1940.—

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

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

4 80b–2(a)(2)) is amended—

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

6 a Federal savings association, as defined in sec7 tion 2(5) of the Home Owners’ Loan Act’’ after 

8 ‘‘a banking institution organized under the laws 

9 of the United States’’; and 

10 (B) in subparagraph (C)—

11 (i) by inserting ‘‘, savings association 

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

13 Owners’ Loan Act,’’ after ‘‘banking insti14 tution’’; and 

15 (ii) by inserting ‘‘or savings associa16 tions’’ after ‘‘having supervision over 

17 banks’’. 

18 (2) CONFORMING AMENDMENTS.—Subsections 

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

20 210A of such Act (15 U.S.C. 80b–10a), as added by 

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

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

23 each place it occurs and inserting ‘‘bank holding 

24 company or savings and loan holding company’’. 
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1 (c) CONFORMING AMENDMENT TO THE INVESTMENT

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

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

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

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

6 one savings and loan holding company (together with its 

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

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

9 SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA10 TIONS AUTHORIZED TO PROMOTE THE PUB11 LIC WELFARE. 

12 (a) IN GENERAL.—Section 5(c)(3) of the Home Own13 ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding 

14 at the end the following new subparagraph: 

15 ‘‘(D) DIRECT INVESTMENTS TO PROMOTE

16 THE PUBLIC WELFARE.—

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

18 association may make investments de19 signed primarily to promote the public wel20 fare, including the welfare of low- and 

21 moderate-income communities or families 

22 through the provision of housing, services, 

23 and jobs. 

24 ‘‘(ii) DIRECT INVESTMENTS OR ACQUI25 SITION OF INTEREST IN OTHER COMPA-
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1 NIES.—Investments under clause (i) may 

2 be made directly or by purchasing interests 

3 in an entity primarily engaged in making 

4 such investments. 

5 ‘‘(iii) PROHIBITION ON UNLIMITED LI6 ABILITY.—No investment may be made 

7 under this subparagraph which would sub8 ject a Federal savings association to unlim9 ited liability to any person. 

10 ‘‘(iv) SINGLE INVESTMENT LIMITA11 TION TO BE ESTABLISHED BY DIREC12 TOR.—Subject to clauses (v) and (vi), the 

13 Director shall establish, by order or regula14 tion, limits on—

15 ‘‘(I) the amount any savings as16 sociation may invest in any 1 project; 

17 and 

18 ‘‘(II) the aggregate amount of in19 vestment of any savings association 

20 under this subparagraph. 

21 ‘‘(v) FLEXIBLE AGGREGATE INVEST22 MENT LIMITATION.—The aggregate 

23 amount of investments of any savings asso24 ciation under this subparagraph may not 

25 exceed an amount equal to the sum of 5 
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1 percent of the savings association’s capital 

2 stock actually paid in and unimpaired and 

3 5 percent of the savings association’s 

4 unimpaired surplus, unless—

5 ‘‘(I) the Director determines that 

6 the savings association is adequately 

7 capitalized; and 

8 ‘‘(II) the Director determines, by 

9 order, that the aggregate amount of 

10 investments in a higher amount than 

11 the limit under this clause will pose 

12 no significant risk to the affected de13 posit insurance fund. 

14 ‘‘(vi) MAXIMUM AGGREGATE INVEST15 MENT LIMITATION.—Notwithstanding 

16 clause (v), the aggregate amount of invest17 ments of any savings association under 

18 this subparagraph may not exceed an 

19 amount equal to the sum of 10 percent of 

20 the savings association’s capital stock actu21 ally paid in and unimpaired and 10 per22 cent of the savings association’s 

23 unimpaired surplus. 

24 ‘‘(vii) INVESTMENTS NOT SUBJECT TO

25 OTHER LIMITATION ON QUALITY OF IN-
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1 VESTMENTS.—No obligation a Federal sav2 ings association acquires or retains under 

3 this subparagraph shall be taken into ac4 count for purposes of the limitation con5 tained in section 28(d) of the Federal De6 posit Insurance Act on the acquisition and 

7 retention of any corporate debt security 

8 not of investment grade.’’. 

9 (b) TECHNICAL AND CONFORMING AMENDMENT.—

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

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

12 ‘‘(A) [Repealed.]’’. 

13 SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL 

14 SAVINGS ASSOCIATIONS WITH NONDEPOSI15 TORY INSTITUTION AFFILIATES. 

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

17 U.S.C. 1464(d)(3)) is amended—

18 (1) by redesignating subparagraph (B) as sub19 paragraph (C); and 

20 (2) by inserting after subparagraph (A) the fol21 lowing new subparagraph: 

22 ‘‘(B) MERGERS AND CONSOLIDATIONS

23 WITH NONDEPOSITORY INSTITUTION AFFILI24 ATES.—
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1 ‘‘(i) IN GENERAL.—Upon the approval 

2 of the Director, a Federal savings associa3 tion may merge with any nondepository in4 stitution affiliate of the savings associa5 tion. 

6 ‘‘(ii) RULE OF CONSTRUCTION.—No 

7 provision of clause (i) shall be construed 

8 as—

9 ‘‘(I) affecting the applicability of 

10 section 18(c) of the Federal Deposit 

11 Insurance Act; or 

12 ‘‘(II) granting a Federal savings 

13 association any power or any author14 ity to engage in any activity that is 

15 not authorized for a Federal savings 

16 association under any other provision 

17 of this Act or any other provision of 

18 law.’’. 

19 SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE20 QUIREMENT FOR SAVINGS ASSOCIATION SUB21 SIDIARIES OF SAVINGS AND LOAN HOLDING 

22 COMPANIES. 

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

24 U.S.C. 1467a(f)) is amended to read as follows: 
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•HR 3505 IH 

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

2 may—

3 ‘‘(1) require a savings association that is a sub4 sidiary of a savings and loan holding company to 

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

6 savings association to pay a dividend on its guar7 anty, permanent, or other nonwithdrawable stock; 

8 and 

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

10 dividends by such a savings association.’’. 

11 SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR 

12 TRUST OWNERSHIP OF SAVINGS ASSOCIA13 TIONS. 

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

15 Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is amend16 ed—

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

18 trust,’’; and 

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

20 its terms it must terminate within 25 years or not 

21 later than 21 years and 10 months after the death 

22 of individuals living on the effective date of the 

23 trust,’’ after ‘‘or similar organization,’’. 
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•HR 3505 IH 

1 (b) TECHNICAL AND CONFORMING AMENDMENT.—

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

3 U.S.C. 1467a(a)(3)) is amended—

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

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

6 such term appears in subparagraph (A) and insert7 ing ‘‘does not include any company by virtue’’; 

8 (2) by striking ‘‘; and’’ at the end of subpara9 graph (A) and inserting a period; and 

10 (3) by striking subparagraph (B). 

11 SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING 

12 PURCHASED MORTGAGE SERVICING RIGHTS. 

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

14 U.S.C. 1464(t)) is amended—

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

16 following new paragraph: 

17 ‘‘(4) [Repealed.]’’; and 

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

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

20 at the end and inserting ‘‘intangible assets.’’. 
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•HR 3505 IH 

1 SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL 

2 SAVINGS ASSOCIATIONS TO INVEST IN SMALL 

3 BUSINESS INVESTMENT COMPANIES. 

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

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

6 read as follows: 

7 ‘‘(D) SMALL BUSINESS INVESTMENT COM8 PANIES.—Any Federal savings association may 

9 invest in 1 or more small business investment 

10 companies, or in any entity established to invest 

11 solely in small business investment companies 

12 formed under the Small Business Investment 

13 Act of 1958, except that the total amount of in14 vestments under this subparagraph may not at 

15 any time exceed the amount equal to 5 percent 

16 of capital and surplus of the savings associa17 tion.’’. 

18 SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN 

19 AUTO LOANS. 

20 (a) IN GENERAL.—Section 5(c)(1) of the Home Own21 ers’ Loan Act (12 U.S.C. 1464(c)(1)) is amended by add22 ing at the end the following new subparagraph: 

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

24 motor vehicles acquired for personal, family, or 

25 household purposes.’’. 
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•HR 3505 IH 

1 (b) TECHNICAL AND CONFORMING AMENDMENT RE2 LATING TO QUALIFIED THRIFT INVESTMENTS.—Section 

3 10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12 

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

5 end the following new subclause: 

6 ‘‘(VIII) Loans and leases for 

7 motor vehicles acquired for personal, 

8 family, or household purposes.’’. 

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

10 Section 15(h) of the Securities Exchange Act of 1934 

11 (15 U.S.C. 78o(h)) is amended by adding at the end the 

12 following new paragraph: 

13 ‘‘(4) SELLING AND OFFERING OF DEPOSIT

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

15 other administrative action of any State or political 

16 subdivision thereof shall directly or indirectly require 

17 any individual who is an agent of 1 Federal savings 

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

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

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

21 in section 3 of the Federal Deposit Insurance Act 

22 (12 U.S.C. 1813(l)) products issued by such associa23 tion to qualify or register as a broker, dealer, associ24 ated person of a broker, or associated person of a 
27

•HR 3505 IH 

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

2 status or capacity, if the individual does not—

3 ‘‘(A) accept deposits or make withdrawals 

4 on behalf of any customer of the association; 

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

6 agent for another entity that is not subject to 

7 supervision and examination by a Federal bank8 ing agency (as defined in section 3(z) of the 

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

10 1813(z)), the National Credit Union Adminis11 tration, or any officer, agency, or other entity 

12 of any State which has primary regulatory au13 thority over State banks, State savings associa14 tions, or State credit unions; 

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

16 not an insured deposit (as defined in section 

17 3(m) of the Federal Deposit Insurance Act (12 

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

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

20 contains a feature that makes it callable at the 

21 option of such Federal savings association; or 

22 ‘‘(E) create a secondary market with re23 spect to a deposit product or otherwise add en24 hancements or features to such product inde25 pendent of those offered by the association.’’. 
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•HR 3505 IH 

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

2 SERVICES. 

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

4 U.S.C. 1464(n)) is amended by adding at the end the fol5 lowing new paragraph: 

6 ‘‘(11) FUNERAL- AND CEMETERY-RELATED FI7 DUCIARY SERVICES.—

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

9 cemetery operator, when acting in such capac10 ity, (or any other person in connection with a 

11 contract or other agreement with a funeral di12 rector or cemetery operator) may engage any 

13 Federal savings association, regardless of where 

14 the association is located, to act in any fidu15 ciary capacity in which the savings association 

16 has the right to act in accordance with this sec17 tion, including holding funds deposited in trust 

18 or escrow by the funeral director or cemetery 

19 operator (or by such other party), and the sav20 ings association may act in such fiduciary ca21 pacity on behalf of the funeral director or ceme22 tery operator (or such other person). 

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

24 paragraph, the following definitions shall apply: 

25 ‘‘(i) CEMETERY.—The term ‘ceme26 tery’ means any land or structure used, or 
29

•HR 3505 IH 

1 intended to be used, for the interment of 

2 human remains in any form. 

3 ‘‘(ii) CEMETERY OPERATOR.—The 

4 term ‘cemetery operator’ means any person 

5 who contracts or accepts payment for mer6 chandise, endowment, or perpetual care 

7 services in connection with a cemetery. 

8 ‘‘(iii) FUNERAL DIRECTOR.—The term 

9 ‘funeral director’ means any person who 

10 contracts or accepts payment to provide or 

11 arrange—

12 ‘‘(I) services for the final disposi13 tion of human remains; or 

14 ‘‘(II) funeral services, property, 

15 or merchandise (including cemetery 

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

17 SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER RE18 QUIREMENT WITH RESPECT TO OUT-OF19 STATE BRANCHES. 

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

21 U.S.C. 1464(r)(1)) is amended by striking the last sen22 tence. 
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•HR 3505 IH 

1 SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL 

2 LOANS. 

3 (a) ELIMINATION OF LENDING LIMIT ON SMALL

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

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

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

7 title) the following new subparagraph: 

8 ‘‘(W) SMALL BUSINESS LOANS.—Small 

9 business loans, as defined in regulations which 

10 the Director shall prescribe.’’. 

11 (b) INCREASE IN LENDING LIMIT ON OTHER BUSI12 NESS LOANS.—Section 5(c)(2)(A) of the Home Owners’ 

13 Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by strik14 ing ‘‘, and amounts in excess of 10 percent’’ and all that 

15 follows through ‘‘by the Director’’. 

16 SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 

17 ASSOCIATIONS FOR FEDERAL COURT JURIS18 DICTION. 

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

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

21 subsection: 

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

23 whether a Federal court has diversity jurisdiction over a 

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

25 Federal savings association shall be considered to be a cit26 izen only of the States in which such savings association 
31

•HR 3505 IH 

1 has its home office and its principal place of business (if 

2 the principal place of business is in a different State than 

3 the home office).’’. 

4 SEC. 214. INCREASE IN LIMITS ON COMMERCIAL REAL ES5 TATE LOANS. 

6 Section 5(c)(2)(B)(i) of the Home Owners’ Loan Act 

7 (12 U.S.C. 1464(c)(2)(B)(i)) is amended by striking ‘‘400 

8 percent’’ and inserting ‘‘500 percent’’. 

9 SEC. 215. REPEAL OF ONE LIMIT ON LOANS TO ONE BOR10 ROWER. 

11 Subparagraph (A) of section 5(u)(2) of the Home 

12 Owners’ Loan Act (12 U.S.C. 1464(u)(2)(A)) is amend13 ed—

14 (1) by striking subclause (I) of clause (ii); 

15 (2) by redesignating subclauses (II), (III), (IV), 

16 and (V) of clause (ii) as subclauses (I), (II), (III), 

17 and (IV), respectively; 

18 (3) in clause (i)—

19 (A) by striking ‘‘for any’’ and inserting 

20 ‘‘For any’’; and 

21 (B) by striking ‘‘; or’’ and inserting a pe22 riod; and 

23 (4) in clause (ii), by striking ‘‘to develop domes24 tic’’ and inserting ‘‘To develop domestic’’. 
32

•HR 3505 IH 

1 SEC. 216. SAVINGS ASSOCIATION CREDIT CARD BANKS. 

2 Section 10(a)(1)(A) of the Home Owners’ Loan Act 

3 (12 U.S.C. 1467a(a)(1)(A)) is amended by inserting ‘‘and 

4 such term does not include an institution described in sec5 tion 2(c)(2)(F) of the Bank Holding Company Act of 1956 

6 for purposes of subsections (a)(1)(E), (c)(3)(B)(ii), 

7 (c)(9)(C)(i), and (e)(3)’’ before the period at the end. 

8 SEC. 217. INTERSTATE ACQUISITIONS BY S&L HOLDING 

9 COMPANIES. 

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

11 U.S.C. 1467a(e)(3)) is amended—

12 (1) by redesignating subparagraphs (A), (B), 

13 and (C) as subparagraphs (B), (C), and (D), respec14 tively; and 

15 (2) by inserting before subparagraph (B) (as so 

16 redesignated) the following new subparagraph: 

17 ‘‘(A) such acquisition would be permissible 

18 under section 3(d) of the Bank Holding Com19 pany Act of 1956 if the savings and loan hold20 ing company were a bank holding company and 

21 any savings association to be acquired were a 

22 bank;’’. 
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•HR 3505 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 3505 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 
35

•HR 3505 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 
36

•HR 3505 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 the following new sub11 paragraph: 

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 3505 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 3505 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) ADDITIONAL INVESTMENT AUTHORITY.—

7 ‘‘(1) IN GENERAL.—In addition to any invest8 ments otherwise authorized, a Federal credit union 

9 may purchase and hold for its own account such in10 vestment securities of investment grade as the 

11 Board may authorize by regulation, subject to such 

12 limitations and restrictions as the Board may pre13 scribe in 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 
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•HR 3505 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 subsection 

22 shall be construed as authorizing a Federal credit 

23 union to purchase shares of stock of any corporation 

24 for the credit union’s own account, except as other25 wise permitted by law.’’. 
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•HR 3505 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’’. 
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•HR 3505 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 inter19 national and domestic electronic fund trans20 fers); and 

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

22 receive international and domestic electronic 

23 fund transfers for persons in the field of mem24 bership for a fee;’’. 
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•HR 3505 IH 

1 SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE 

2 COMMON-BOND CREDIT UNIONS. 

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

4 (12 U.S.C. 1759(d)(2)) is amended—

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

6 subparagraph (B); 

7 (2) by striking the period at the end of sub8 paragraph (C) and inserting ‘‘; or’’; and 

9 (3) by adding at the end the following new sub10 paragraph: 

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

12 credit union approved by the Board on or after 

13 August 7, 1998.’’. 

14 SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CRED15 IT UNIONS. 

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

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

18 (2) the following new paragraph: 

19 ‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP

20 OF CERTAIN MEMBER GROUPS IN COMMUNITY CHAR21 TER CONVERSIONS.—In the case of a voluntary con22 version of a common-bond credit union described in 

23 paragraph (1) or (2) of subsection (b) into a com24 munity credit union described in subsection (b)(3), 

25 the Board shall prescribe, by regulation, the criteria 

26 under which the Board may determine that a mem-
43

•HR 3505 IH 

1 ber group or other portion of a credit union’s exist2 ing membership, that is located outside the well-de3 fined local community, neighborhood, or rural dis4 trict that shall constitute the community charter, 

5 can be satisfactorily served by the credit union and 

6 remain within the community credit union’s field of 

7 membership.’’. 

8 SEC. 310. CREDIT UNION GOVERNANCE. 

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

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

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

12 ‘‘(b) POLICY AND ACTIONS OF BOARDS OF DIREC13 TORS OF FEDERAL CREDIT UNIONS.—

14 ‘‘(1) EXPULSION OF MEMBERS FOR NON15 PARTICIPATION OR FOR JUST CAUSE.—The board of 

16 directors of a Federal credit union may, by majority 

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

18 policy with respect to expulsion from membership, 

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

20 on just cause, including disruption of credit union 

21 operations, or on nonparticipation by a member in 

22 the affairs of the credit union. 

23 ‘‘(2) WRITTEN NOTICE OF POLICY TO MEM24 BERS.—If a policy described in paragraph (1) is 

25 adopted, written notice of the policy as adopted and 
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•HR 3505 IH 

1 the effective date of such policy shall be provided 

2 to—

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

4 union not less than 30 days prior to the effec5 tive date of such policy; and 

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

7 applying for membership.’’. 

8 (b) TERM LIMITS AUTHORIZED FOR BOARD MEM9 BERS OF FEDERAL CREDIT UNIONS.—Section 111(a) of 

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

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

12 ‘‘The bylaws of a Federal credit union may limit the num13 ber of consecutive terms any person may serve on the 

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

15 (c) REIMBURSEMENT FOR LOST WAGES DUE TO

16 SERVICE ON CREDIT UNION BOARD NOT TREATED AS

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

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

19 ‘‘, including lost wages,’’ after ‘‘the reimbursement of rea20 sonable expenses’’. 

21 SEC. 311. PROVIDING THE NATIONAL CREDIT UNION AD22 MINISTRATION WITH GREATER FLEXIBILITY 

23 IN RESPONDING TO MARKET CONDITIONS. 

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

25 Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated 
45

•HR 3505 IH 

1 by section 303 of this title) is amended by striking ‘‘six2 month period and that prevailing interest rate levels’’ and 

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

4 levels’’. 

5 SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION 

6 REQUIREMENT OF THE CLAYTON ACT. 

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

8 18a(c)(7)) is amended by inserting ‘‘section 205(b)(3) of 

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

10 before ‘‘or section 3’’. 

11 SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY 

12 INSTITUTIONS UNDER SECURITIES LAWS. 

13 (a) DEFINITION OF BANK UNDER THE SECURITIES

14 EXCHANGE ACT OF 1934.—Section 3(a)(6) of the Securi15 ties Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) (as 

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

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

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

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

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

21 and (5) of this subsection and only for activities oth22 erwise authorized by applicable laws to which such 

23 credit unions are subject, and (E) a receiver’’; and 
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1 (2) in subparagraph (E) (as so redesignated by 

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

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

4 (b) DEFINITION OF BANK UNDER THE INVESTMENT

5 ADVISERS ACT OF 1940.—Section 202(a)(2) of the In6 vestment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) 

7 (as amended by section 201(b)(1) of this Act) is amend8 ed—

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

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

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

12 Union Act) but only for activities otherwise author13 ized by applicable laws to which such credit unions 

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

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

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

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

18 (c) DEFINITION OF APPROPRIATE FEDERAL BANK19 ING AGENCY.—Section 210A(c) of the Investment Advis20 ers Act of 1940 (15 U.S.C. 80b–10a(c)) is amended by 

21 inserting ‘‘and includes the National Credit Union Admin22 istration Board, in the case of an insured credit union (as 

23 defined in section 101(7) of the Federal Credit Union 

24 Act)’’ before the period at the end. 
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1 SEC. 314. CLARIFICATION OF DEFINITION OF NET WORTH 

2 UNDER CERTAIN CIRCUMSTANCES FOR PUR3 POSES OF PROMPT CORRECTIVE ACTION. 

4 Subparagraph (A) of section 216(o)(2) of the Federal 

5 Credit Union Act (12 U.S.C. 1790d(o)(2)(A)) is amend6 ed—

7 (1) by inserting ‘‘the’’ before ‘‘retained earnings 

8 balance’’; and 

9 (2) by inserting ‘‘, together with any amounts 

10 that were previously retained earnings of any other 

11 credit union with which the credit union has com12 bined’’ before the semicolon at the end. 

13 SEC. 315. AMENDMENTS RELATING TO NONFEDERALLY IN14 SURED CREDIT UNIONS. 

15 (a) IN GENERAL.—Subsection (a) of section 43 of the 

16 Federal Deposit Insurance Act (12 U.S.C. 1831t(a)) is 

17 amended by adding at the end the following new para18 graph: 

19 ‘‘(3) ENFORCEMENT BY APPROPRIATE STATE

20 SUPERVISOR.—Any appropriate State supervisor of a 

21 private deposit insurer, and any appropriate State 

22 supervisor of a depository institution which receives 

23 deposits that are insured by a private deposit in24 surer, may examine and enforce compliance with this 

25 subsection under the applicable regulatory authority 

26 of such supervisor.’’. 
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1 (b) AMENDMENTS RELATING TO EFFECTIVE

2 DATES.—

3 (1) NEW DATE DESIGNATING NEW AND CUR4 RENT DEPOSITORS.—Section 43(b)(3) of the Federal 

5 Deposit Insurance Act (12 U.S.C. 1831t(b)(3)) is 

6 amended by striking ‘‘June 19, 1994’’ each place 

7 such term appears in subparagraph (A), (B), and 

8 (C) and inserting ‘‘May 15, 2004 (or, in the case of 

9 a depository institution that terminates Federal de10 posit or share insurance after such date, the date 

11 the termination becomes effective)’’. 

12 (2) CHANGE IN CERTAIN EFFECTIVE DATE.—

13 Section 43(b)(3)(B) of the Federal Deposit Insur14 ance Act (12 U.S.C. 1831t(b)(3)(B)) is amended by 

15 striking ‘‘the effective date of this paragraph’’ and 

16 inserting ‘‘the effective date of the Financial Serv17 ices Regulatory Relief Act of 2005’’. 

18 (3) CHANGE IN TIMING OF FIRST NOTICE.—

19 Section 43(b)(3)(C)(ii)(I) of the Federal Deposit In20 surance Act (12 U.S.C. 1831t(b)(3)(C)(ii)(I)) is 

21 amended by striking ‘‘September 12, 1994’’ and in22 serting ‘‘the end of the 45-day period beginning on 

23 the effective date of the Financial Services Regu24 latory Relief Act of 2005 (or, in the case of a deposi25 tory institution that terminates Federal deposit or 
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•HR 3505 IH 

1 share insurance after May 15, 2004, the later of the 

2 end of such 45-day period or the end of the 45-day 

3 period beginning on the date the termination of such 

4 Federal deposit or share insurance becomes effec5 tive)’’. 

6 (c) REPEAL OF PROVISION PROHIBITING NON7 DEPOSITORY INSTITUTIONS FROM ACCEPTING DEPOS8 ITS.—Section 43 of the Federal Deposit Insurance Act (12 

9 U.S.C. 1831t) is amended—

10 (1) by striking subsection (e); and 

11 (2) by redesignating subsections (f) and (g) as 

12 subsections (e) and (f), respectively. 

13 (d) REPEAL OF PROVISION CONCERNING NON14 DEPOSITORY INSTITUTIONS MASQUERADING AS DEPOSI15 TORY INSTITUTIONS.—Subsection (e)(2) (as so redesig16 nated by subsection (c) of this section) of section 43 of 

17 the Federal Deposit Insurance Act (12 U.S.C. 1831t) is 

18 amended by striking ‘‘includes—’’ and all that follows 

19 through the end of subparagraph (B) and inserting ‘‘in20 cludes any entity described in section 19(b)(1)(A)(iv) of 

21 the Federal Reserve Act.’’. 

22 (e) REPEAL OF FTC AUTHORITY TO ENFORCE INDE23 PENDENT AUDIT REQUIREMENT; CONCURRENT STATE

24 ENFORCEMENT.—Subsection (f) (as so redesignated by 

25 subsection (c) of this section) of section 43 of the Federal 
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•HR 3505 IH 

1 Deposit Insurance Act (12 U.S.C. 1831t) is amended to 

2 read as follows: 

3 ‘‘(f) ENFORCEMENT.—

4 ‘‘(1) LIMITED FTC ENFORCEMENT AUTHOR5 ITY.—Compliance with the requirements of sub6 sections (b) and (c), and any regulation prescribed 

7 or order issued under any such subsection, shall be 

8 enforced under the Federal Trade Commission Act 

9 by the Federal Trade Commission. 

10 ‘‘(2) BROAD STATE ENFORCEMENT AUTHOR11 ITY.—

12 ‘‘(A) IN GENERAL.—Subject to subpara13 graph (C), an appropriate State supervisor of a 

14 depository institution lacking Federal deposit 

15 insurance may examine and enforce compliance 

16 with the requirements of this section, and any 

17 regulation prescribed under this section. 

18 ‘‘(B) STATE POWERS.—For purposes of 

19 bringing any action to enforce compliance with 

20 this section, no provision of this section shall be 

21 construed as preventing an appropriate State 

22 supervisor of a depository institution lacking 

23 Federal deposit insurance from exercising any 

24 powers conferred on such official by the laws of 

25 such State. 
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1 ‘‘(C) LIMITATION ON STATE ACTION

2 WHILE FEDERAL ACTION PENDING.—If the 

3 Federal Trade Commission has instituted an 

4 enforcement action for a violation of this sec5 tion, no appropriate State supervisor may, dur6 ing the pendency of such action, bring an action 

7 under this section against any defendant named 

8 in the complaint of the Commission for any vio9 lation of this section that is alleged in that com10 plaint.’’. 

11 TITLE IV—DEPOSITORY 

12 INSTITUTION PROVISIONS 

13 SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCH14 ING AND MERGERS. 

15 (a) DE NOVO INTERSTATE BRANCHES OF NATIONAL

16 BANKS.—

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

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

19 36(g)(1)) is amended by striking ‘‘maintain a 

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

21 subparagraph (B) and inserting ‘‘maintain a 

22 branch.’’. 

23 (2) CLERICAL AMENDMENT.—The heading for 

24 subsection (g) of section 5155 of the Revised Stat-
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•HR 3505 IH 

1 utes of the United States is amended by striking 

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

3 (b) DE NOVO INTERSTATE BRANCHES OF STATE

4 NONMEMBER BANKS.—

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

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

7 1828(d)(4)(A)) is amended by striking ‘‘maintain a 

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

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

10 (2) INTERSTATE BRANCHING BY SUBSIDIARIES

11 OF COMMERCIAL FIRMS PROHIBITED.—Section 

12 18(d)(3)) of the Federal Deposit Insurance Act (12 

13 U.S.C. 1828(d)(3)) is amended by adding at the end 

14 the following new subparagraph: 

15 ‘‘(C) INTERSTATE BRANCHING BY SUBSIDI16 ARIES OF COMMERCIAL FIRMS PROHIBITED.—

17 ‘‘(i) IN GENERAL.—If the appropriate 

18 State bank supervisor of the home State of 

19 any industrial loan company, industrial 

20 bank, or other institution described in sec21 tion 2(c)(2)(H) of the Bank Holding Com22 pany Act of 1956, or the appropriate State 

23 bank supervisor of any host State with re24 spect to such company, bank, or institu25 tion, determines that such company, bank, 
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•HR 3505 IH 

1 or institution is controlled, directly or indi2 rectly, by a commercial firm, such com3 pany, bank, or institution may not acquire, 

4 establish, or operate a branch in such host 

5 State. 

6 ‘‘(ii) COMMERCIAL FIRM DEFINED.—

7 For purposes of this subsection, the term 

8 ‘commercial firm’ means any entity at least 

9 15 percent of the annual gross revenues of 

10 which on a consolidated basis, including all 

11 affiliates of the entity, were derived from 

12 engaging, on an on-going basis, in activi13 ties that are not financial in nature or inci14 dental to a financial activity during at 

15 least 3 of the prior 4 calendar quarters. 

16 ‘‘(iii) GRANDFATHERED INSTITU17 TIONS.—Clause (i) shall not apply with re18 spect to any industrial loan company, in19 dustrial bank, or other institution de20 scribed in section 2(c)(2)(H) of the Bank 

21 Holding Company Act of 1956—

22 ‘‘(I) which became an insured de23 pository institution before October 1, 

24 2003 or pursuant to an application 

25 for deposit insurance which was ap-
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•HR 3505 IH 

1 proved by the Corporation before such 

2 date; and 

3 ‘‘(II) with respect to which there 

4 is no change in control, directly or in5 directly, of the company, bank, or in6 stitution after September 30, 2003, 

7 that requires an application under 

8 subsection (c), section 7(j), section 3 

9 of the Bank Holding Company Act of 

10 1956, or section 10 of the Home 

11 Owners’ Loan Act. 

12 ‘‘(iv) TRANSITION PROVISION.—Any 

13 divestiture required under this subpara14 graph of a branch in a host State shall be 

15 completed as quickly as is reasonably pos16 sible. 

17 ‘‘(v) CORPORATE REORGANIZATIONS

18 PERMITTED.—The acquisition of direct or 

19 indirect control of the company, bank, or 

20 institution referred to in clause (iii)(II) 

21 shall not be treated as a ‘change in con22 trol’ for purposes of such clause if the 

23 company acquiring control is itself directly 

24 or indirectly controlled by a company that 

25 was an affiliate of such company, bank, or 
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•HR 3505 IH 

1 institution on the date referred to in clause 

2 (iii)(II), and remained an affiliate at all 

3 times after such date.’’. 

4 (3) TECHNICAL AND CONFORMING AMEND5 MENTS.—Section 18(d)(4) of the Federal Deposit 

6 Insurance Act (12 U.S.C. 1828(d)(4)) is amended—

7 (A) in subparagraph (A) by striking ‘‘Sub8 ject to subparagraph (B)’’ and inserting ‘‘Sub9 ject to subparagraph (B) and paragraph 

10 (3)(C)’’; and 

11 (B) in subparagraphs (D) and (E), by 

12 striking ‘‘The term’’ and inserting ‘‘For pur13 poses of this subsection, the term’’. 

14 (4) CLERICAL AMENDMENT.—The heading for 

15 paragraph (4) of section 18(d) of the Federal De16 posit Insurance Act is amended by striking ‘‘STATE

17 ‘OPT-IN’ ELECTION TO PERMIT INTERSTATE’’ and in18 serting ‘‘INTERSTATE’’. 

19 (c) DE NOVO INTERSTATE BRANCHES OF STATE

20 MEMBER BANKS.—The 3rd undesignated paragraph of 

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

22 amended by adding at the end the following new sen23 tences: ‘‘A State member bank may establish and operate 

24 a de novo branch in a host State (as such terms are de25 fined in section 18(d) of the Federal Deposit Insurance 
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•HR 3505 IH 

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

2 same limitations and restrictions as are applicable to the 

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

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

5 of the United States or are applicable to an insured State 

6 nonmember bank under section 18(d)(3) of the Federal 

7 Deposit Insurance Act’’ after ‘‘Revised Statutes of the 

8 United States’’. Such section 5155(g) shall be applied for 

9 purposes of the preceding sentence by substituting ‘Board 

10 of Governors of the Federal Reserve System’ for ‘Comp11 troller of the Currency’ and ‘State member bank’ for ‘na12 tional bank’.’’. 

13 (d) INTERSTATE MERGER OF BANKS.—

14 (1) MERGER OF INSURED BANK WITH ANOTHER

15 DEPOSITORY INSTITUTION OR TRUST COMPANY.—

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

17 Act (12 U.S.C. 1831u(a)(1)) is amended—

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

19 1997, the’’ and inserting ‘‘The’’; and 

20 (B) by striking ‘‘insured banks with dif21 ferent home States’’ and inserting ‘‘an insured 

22 bank and another insured depository institution 

23 or trust company with a different home State 

24 than the resulting insured bank’’. 
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1 (2) NATIONAL BANK TRUST COMPANY MERGER

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

3 section 4 of the National Bank Consolidation and 

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

5 read as follows: 

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

7 WITH ANOTHER TRUST COMPANY.—A national bank that 

8 is a trust company may engage in a consolidation or merg9 er under this Act with any trust company with a different 

10 home State, under the same terms and conditions that 

11 would apply if the trust companies were located within the 

12 same State.’’. 

13 (e) INTERSTATE FIDUCIARY ACTIVITY.—Section 

14 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 

15 1828(d)) is amended by adding at the end the following 

16 new paragraph: 

17 ‘‘(5) INTERSTATE FIDUCIARY ACTIVITY.—

18 ‘‘(A) AUTHORITY OF STATE BANK SUPER19 VISOR.—The State bank supervisor of a State 

20 bank may approve an application by the State 

21 bank, when not in contravention of home State 

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

23 administrator, registrar of stocks and bonds, 

24 guardian of estates, assignee, receiver, com25 mittee of estates of lunatics, or in any other fi-
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•HR 3505 IH 

1 duciary capacity in a host State in which State 

2 banks or other corporations which come into 

3 competition with national banks are permitted 

4 to act under the laws of such host State. 

5 ‘‘(B) NONCONTRAVENTION OF HOST STATE

6 LAW.—Whenever the laws of a host State au7 thorize or permit the exercise of any or all of 

8 the foregoing powers by State banks or other 

9 corporations which compete with national 

10 banks, the granting to and the exercise of such 

11 powers by a State bank as provided in this 

12 paragraph shall not be deemed to be in con13 travention of host State law within the meaning 

14 of this paragraph. 

15 ‘‘(C) STATE BANK INCLUDES TRUST COM16 PANIES.—For purposes of this paragraph, the 

17 term ‘State bank’ includes any State-chartered 

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

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

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

21 ‘host State’ have the meanings given such 

22 terms in section 44.’’. 

23 (f) TECHNICAL AND CONFORMING AMENDMENTS.—

24 (1) Section 44 of the Federal Deposit Insurance 

25 Act (12 U.S.C. 1831u) is amended—
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•HR 3505 IH 

1 (A) in subsection (a)—

2 (i) by striking paragraph (4) and in3 serting the following new paragraph: 

4 ‘‘(4) TREATMENT OF BRANCHES IN CONNEC5 TION WITH CERTAIN INTERSTATE MERGER TRANS6 ACTIONS.—In the case of an interstate merger 

7 transaction which involves the acquisition of a 

8 branch of an insured depository institution or trust 

9 company without the acquisition of the insured de10 pository institution or trust company, the branch 

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

12 insured depository institution or trust company the 

13 home State of which is the State in which the 

14 branch is located.’’; and 

15 (ii) by striking paragraphs (5) and (6) 

16 and inserting the following new paragraph: 

17 ‘‘(5) APPLICABILITY TO INDUSTRIAL LOAN

18 COMPANIES.—No provision of this section shall be 

19 construed as authorizing the approval of any trans20 action involving a industrial loan company, indus21 trial bank, or other institution described in section 

22 2(c)(2)(H) of the Bank Holding Company Act of 

23 1956, or the acquisition, establishment, or operation 

24 of a branch by any such company, bank, or institu25 tion, that is not allowed under section 18(d)(3).’’. 
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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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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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1 ‘‘(A) with respect to a bank, a State, other 

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

3 bank maintains, or seeks to establish and main4 tain, a branch; and 

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

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

7 other than the home State of the trust com8 pany, in which the trust company acts, or seeks 

9 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 engaged in the business of receiv-
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•HR 3505 IH 

1 ing deposits other than trust funds (as defined in 

2 section 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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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 

11 of 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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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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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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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)(i), an ap18 propriate Federal banking agency may enforce, under sec19 tion 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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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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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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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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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 the Home 

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

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

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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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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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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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’’. 

21 SEC. 410. COMMUNITY REINVESTMENT CREDIT FOR ESOPS 

22 AND EWOCS. 

23 Section 804 of the Community Reinvestment Act of 

24 1977 (12 U.S.C. 2903) is amended by adding at the end 

25 the following new subsection—

26 ‘‘(d) ESTABLISHMENT OF ESOPS AND EWOCS.—
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1 ‘‘(1) IN GENERAL.—In assessing and taking 

2 into account, under subsection (a), the record of a 

3 financial institution, the appropriate Federal finan4 cial supervisory agency shall consider as a factor ac5 tivities that support or enable the establishment of 

6 employee stock ownership plans or eligible worker7 owned cooperatives, so long as the employer spon8 soring the plan or cooperative is at least 51 percent 

9 owned by employees, including low to moderate in10 come employees. 

11 ‘‘(2) DEFINITIONS.—For purposes of this sub12 section, the following definitions shall apply: 

13 ‘‘(A) EMPLOYEE STOCK OWNERSHIP

14 PLAN.—The term ‘employee stock ownership 

15 plan’ has the same meaning as in section 

16 4975(e)(7) of the Internal Revenue Code of 

17 1986. 

18 ‘‘(B) ELIGIBLE WORKER-OWNED COOPERA19 TIVE.—The term ‘eligible worker-owned cooper20 ative’ has the same meaning as in section 

21 1042(c)(2) of the Internal Revenue Code of 

22 1986.’’. 
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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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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 services 

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 cash 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 SEC. 505. SAVINGS ASSOCIATIONS ACTING AS AGENTS FOR 

2 AFFILIATED DEPOSITORY INSTITUTIONS. 

3 (a) IN GENERAL.—Section 18(r) of the Federal De4 posit Insurance Act (12 U.S.C. 1828(r)) is amended—

5 (1) in paragraph (1)—

6 (A) by striking ‘‘bank subsidiary’’ and in7 serting ‘‘depository institution subsidiary’’; and 

8 (B) by striking ‘‘bank holding company’’ 

9 and inserting ‘‘depository institution holding 

10 company’’; 

11 (2) in paragraph (2), by striking ‘‘a bank act12 ing’’ and inserting ‘‘a depository institution acting’’; 

13 (3) in paragraphs (3) and (5), by striking ‘‘or 

14 (6)’’ each place such term appears in each such 

15 paragraph; and 

16 (4) by striking paragraph (6). 

17 (b) CLERICAL AMENDMENT.—The heading for sec18 tion 18(r)(2) of the Federal Deposit Insurance Act (12 

19 U.S.C. 1828(r)) is amended by striking ‘‘BANK’’ and in20 serting ‘‘DEPOSITORY INSTITUTION’’. 

21 TITLE VI—BANKING AGENCY 

22 PROVISIONS 

23 SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER 

24 TO ALLOCATE EXAMINER RESOURCES. 

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

26 (12 U.S.C. 1820(d)) is amended—
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1 (1) by redesignating paragraphs (5), (6), (7), 

2 (8), (9), and (10) as paragraphs (6), (7), (8), (9), 

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

4 (2) by inserting after paragraph (4), the fol5 lowing new paragraph: 

6 ‘‘(5) WAIVER OF SCHEDULE WHEN NECESSARY

7 TO ACHIEVE SAFE AND SOUND ALLOCATION OF EX8 AMINER RESOURCES.—Notwithstanding paragraphs 

9 (1), (2), (3), and (4), an appropriate Federal bank10 ing agency may make adjustments in the examina11 tion cycle for an insured depository institution if 

12 necessary to allocate available resources of exam13 iners in a manner that provides for the safety and 

14 soundness of, and the effective examination and su15 pervision of, insured depository institutions.’’; and 

16 (3) in paragraphs (8) and (9), as so redesig17 nated, by striking ‘‘paragraph (6)’’ and inserting 

18 ‘‘paragraph (7)’’. 

19 SEC. 602. INTERAGENCY DATA SHARING. 

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

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

22 1817(a)(2)) is amended by adding at the end the following 

23 new subparagraph: 

24 ‘‘(C) DATA SHARING WITH OTHER AGEN25 CIES AND PERSONS.—In addition to reports of 
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1 examination, reports of condition, and other re2 ports required to be regularly provided to the 

3 Corporation (with respect to all insured deposi4 tory institutions, including a depository institu5 tion for which the Corporation has been ap6 pointed conservator or receiver) or an appro7 priate State bank supervisor (with respect to a 

8 State depository institution) under subpara9 graph (A) or (B), a Federal banking agency 

10 may, in the agency’s discretion, furnish any re11 port of examination or other confidential super12 visory information concerning any depository 

13 institution or other entity examined by such 

14 agency under authority of any Federal law, 

15 to—

16 ‘‘(i) any other Federal or State agen17 cy or authority with supervisory or regu18 latory authority over the depository institu19 tion or other entity; 

20 ‘‘(ii) any officer, director, or receiver 

21 of such depository institution or entity; 

22 and 

23 ‘‘(iii) any other person the Federal 

24 banking agency determines to be appro25 priate.’’. 
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1 (b) NATIONAL CREDIT UNION ADMINISTRATION.—

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

3 U.S.C. 1782(a)) is amended by adding at the end the fol4 lowing new paragraph: 

5 ‘‘(8) DATA SHARING WITH OTHER AGENCIES

6 AND PERSONS.—In addition to reports of examina7 tion, reports of condition, and other reports required 

8 to be regularly provided to the Board (with respect 

9 to all insured credit unions, including a credit union 

10 for which the Corporation has been appointed con11 servator or liquidating agent) or an appropriate 

12 State commission, board, or authority having super13 vision of a State-chartered credit union, the Board 

14 may, in the Board’s discretion, furnish any report of 

15 examination or other confidential supervisory infor16 mation concerning any credit union or other entity 

17 examined by the Board under authority of any Fed18 eral law, to—

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

20 authority with supervisory or regulatory author21 ity over the credit union or other entity; 

22 ‘‘(B) any officer, director, or receiver of 

23 such credit union or entity; and 
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1 ‘‘(C) any other institution-affiliated party 

2 of such credit union or entity the Board deter3 mines to be appropriate.’’. 

4 SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION 

5 BY CONVICTED INDIVIDUAL. 

6 Section 19 of the Federal Deposit Insurance Act (12 

7 U.S.C. 1829) is amended by adding at the end the fol8 lowing new subsection: 

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

10 shall apply to a noninsured national bank and a non11 insured State member bank, and any agency or non12 insured branch (as such terms are defined in section 1(b) 

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

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

15 depository institution, except such subsections shall be ap16 plied for purposes of this subsection by substituting the 

17 agency determined under the following paragraphs for 

18 ‘Corporation’ each place such term appears in such sub19 sections: 

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

21 case of a noninsured national bank or any Federal 

22 agency or noninsured Federal branch of a foreign 

23 bank. 

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

25 Reserve System, in the case of a noninsured State 
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1 member bank or any State agency or noninsured 

2 State branch of a foreign bank.’’. 

3 SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF 

4 OLD RECORDS OF A DEPOSITORY INSTITU5 TION BY THE FDIC AFTER THE APPOINTMENT 

6 OF THE FDIC AS RECEIVER. 

7 Section 11(d)(15)(D) of the Federal Deposit Insur8 ance Act (12 U.S.C. 1821(d)(15)(D)) is amended—

9 (1) by striking ‘‘RECORDKEEPING REQUIRE10 MENT.—After the end of the 6-year period’’ and in11 serting ‘‘RECORDKEEPING REQUIREMENT.—

12 ‘‘(i) IN GENERAL.—Except as pro13 vided in clause (ii), after the end of the 6-

14 year period’’; 

15 (2) by striking ‘‘to be unnecessary’’ and insert16 ing ‘‘are unnecessary and not relevant to any pend17 ing or reasonably probable future litigation’’; and 

18 (3) by adding at the end the following new 

19 clause: 

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

21 records of an insured depository institution 

22 which—

23 ‘‘(I) are at least 10 years old, as 

24 of the date the Corporation is ap-
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1 pointed as the receiver of such deposi2 tory institution; and 

3 ‘‘(II) are unnecessary and not 

4 relevant to any pending or reasonably 

5 probable future litigation, as provided 

6 in clause (i), 

7 the Corporation may destroy such records 

8 in accordance with clause (i) any time 

9 after such appointment is final without re10 gard to the 6-year period of limitation con11 tained in such clause.’’. 

12 SEC. 605. MODERNIZATION OF RECORDKEEPING REQUIRE13 MENT. 

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

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

16 follows: 

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

18 ‘‘(1) IN GENERAL.—A Federal banking agency 

19 may cause any and all records, papers, or documents 

20 kept by the agency or in the possession or custody 

21 of the agency to be—

22 ‘‘(A) photographed or microphotographed 

23 or otherwise reproduced upon film; or 

24 ‘‘(B) preserved in any electronic medium 

25 or format which is capable of—
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1 ‘‘(i) being read or scanned by com2 puter; and 

3 ‘‘(ii) being reproduced from such elec4 tronic medium or format by printing or 

5 any other form of reproduction of elec6 tronically stored data. 

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

8 photographs, microphotographs, or photographic 

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

10 or reproduction of electronically stored data de11 scribed in paragraph (1)(B) shall be deemed to be 

12 an original record for all purposes, including intro13 duction in evidence in all State and Federal courts 

14 or administrative agencies and shall be admissible to 

15 prove any act, transaction, occurrence, or event 

16 therein recorded. 

17 ‘‘(3) AUTHORITY OF THE FEDERAL BANKING

18 AGENCIES.—Any photographs, microphotographs, or 

19 photographic film or copies thereof described in 

20 paragraph (1)(A) or reproduction of electronically 

21 stored data described in paragraph (1)(B) shall be 

22 preserved in such manner as the Federal banking 

23 agency shall prescribe and the original records, pa24 pers, or documents may be destroyed or otherwise 
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1 disposed of as the Federal banking agency may di2 rect.’’. 

3 SEC. 606. STREAMLINING REPORTS OF CONDITION. 

4 Section 7(a) of the Federal Deposit Insurance Act 

5 (12 U.S.C. 1817(a)) is amended by adding the following 

6 new paragraph: 

7 ‘‘(11) STREAMLINING REPORTS OF CONDI8 TION.—

9 ‘‘(A) REVIEW OF INFORMATION AND

10 SCHEDULES.—Before the end of the 1-year pe11 riod beginning on the date of the enactment of 

12 the Financial Services Regulatory Relief Act of 

13 2005 and before the end of each 5-year period 

14 thereafter, each Federal banking agency shall, 

15 in consultation with the other relevant Federal 

16 banking agencies, review the information and 

17 schedules that are required to be filed by an in18 sured depository institution in a report of con19 dition required under paragraph (3). 

20 ‘‘(B) REDUCTION OR ELIMINATION OF IN21 FORMATION FOUND TO BE UNNECESSARY.—

22 After completing the review required by sub23 paragraph (A), a Federal banking agency, in 

24 consultation with the other relevant Federal 

25 banking agencies, shall reduce or eliminate any 
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1 requirement to file information or schedules 

2 under paragraph (3) (other than information or 

3 schedules that are otherwise required by law) if 

4 the agency determines that the continued collec5 tion of such information or schedules is no 

6 longer necessary or appropriate.’’. 

7 SEC. 607. EXPANSION OF ELIGIBILITY FOR 18-MONTH EX8 AMINATION SCHEDULE FOR COMMUNITY 

9 BANKS. 

10 Paragraph (4)(A) of section 10(d) of the Federal De11 posit Insurance Act (12 U.S.C. 1820(d)) is amended by 

12 striking ‘‘$250,000,000’’ and inserting ‘‘$1,000,000,000’’. 

13 SEC. 608. SHORT FORM REPORTS OF CONDITION FOR CER14 TAIN COMMUNITY BANKS. 

15 (a) IN GENERAL.—Section 7(a) of the Federal De16 posit Insurance Act (12 U.S.C. 1817(a)) is amended by 

17 inserting after paragraph (11) (as added by section 606 

18 of this title) the following new paragraph: 

19 ‘‘(12) SHORT FORM REPORTS OF CONDITION

20 FOR COMMUNITY BANKS.—

21 ‘‘(A) IN GENERAL.—With respect to re22 ports of condition required under paragraph (3) 

23 for each calendar quarter, an insured depository 

24 institution described in subparagraphs (A), (B), 

25 (C), and (D) of section 10(d)(4) may submit a 
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1 short form of any such report of condition in 2 

2 nonsequential quarters of any calendar year. 

3 ‘‘(B) SHORT FORM DEFINED.—The term 

4 ‘short form’, when used in connection with any 

5 report of condition required under paragraph 

6 (3), means a report of condition in a format es7 tablished by the appropriate Federal banking 

8 agency, after notice and opportunity for com9 ment, that—

10 ‘‘(i) is significantly and materially less 

11 burdensome for the insured depository in12 stitution to prepare than the format of the 

13 report of condition required under para14 graph (3); and 

15 ‘‘(ii) provides sufficient material infor16 mation for the appropriate Federal bank17 ing agency to assure the maintenance of 

18 the safe and sound condition of the deposi19 tory institution and safe and sound prac20 tices.’’. 

21 (b) REGULATIONS.—Any regulation required to carry 

22 out the amendment made by subsection (a) shall be pub23 lished in final form before the end of the 6-month period 

24 beginning on the date of the enactment of this Act. 
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1 SEC. 609. 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 INSTITUTIONS.—

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

9 is amended—

10 (A) in subparagraph (A)—

11 (i) by striking ‘‘is charged in any in12 formation, indictment, or complaint, with 

13 the commission of or participation in’’ and 

14 inserting ‘‘is the subject of any informa15 tion, indictment, or complaint, involving 

16 the commission of or participation in’’; 

17 (ii) by striking ‘‘may pose a threat to 

18 the interests of the depository institution’s 

19 depositors or may threaten to impair pub20 lic confidence in the depository institu21 tion,’’ and insert ‘‘posed, poses, or may 

22 pose a threat to the interests of the deposi23 tors of, or threatened, threatens, or may 

24 threaten to impair public confidence in, 

25 any relevant depository institution (as de26 fined in subparagraph (E)),’’; and 
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1 (iii) by striking ‘‘affairs of the deposi2 tory institution’’ and inserting ‘‘affairs of 

3 any depository institution’’; 

4 (B) in subparagraph (B)(i), by striking 

5 ‘‘the depository institution’’ and inserting ‘‘any 

6 depository institution that the subject of the no7 tice is affiliated with at the time the notice is 

8 issued’’; 

9 (C) in subparagraph (C)(i)—

10 (i) by striking ‘‘may pose a threat to 

11 the interests of the depository institution’s 

12 depositors or may threaten to impair pub13 lic confidence in the depository institu14 tion,’’ and insert ‘‘posed, poses, or may 

15 pose a threat to the interests of the deposi16 tors of, or threatened, threatens, or may 

17 threaten to impair public confidence in, 

18 and relevant depository institution (as de19 fined in subparagraph (E)),’’; and 

20 (ii) by striking ‘‘affairs of the deposi21 tory institution’’ and inserting ‘‘affairs of 

22 any depository institution’’; 

23 (D) in subparagraph (C)(ii), by striking 

24 ‘‘affairs of the depository institution’’ and in25 serting ‘‘affairs of any depository institution’’; 
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1 (E) in subparagraph (D)(i), by striking 

2 ‘‘the depository institution’’ and inserting ‘‘any 

3 depository institution that the subject of the 

4 order is affiliated with at the time the order is 

5 issued’’; and 

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

7 subparagraph: 

8 ‘‘(E) RELEVANT DEPOSITORY INSTITU9 TION.—For purposes of this subsection, the 

10 term ‘relevant depository institution’ means any 

11 depository institution of which the party is or 

12 was an institution-affiliated party at the time—

13 ‘‘(i) the information, indictment or 

14 complaint described in subparagraph (A) 

15 was issued; or 

16 ‘‘(ii) the notice is issued under sub17 paragraph (A) or the order is issued under 

18 subparagraph (C)(i).’’. 

19 (2) CLERICAL AMENDMENT.—The heading for 

20 section 8(g) of the Federal Deposit Insurance Act 

21 (12 U.S.C. 1818(g)) is amended to read as follows: 

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)—

12 (i) by striking ‘‘the credit union’’ each 

13 place such term appears and inserting 

14 ‘‘any credit union’’; and 

15 (ii) by striking ‘‘the credit union’s’’ 

16 and inserting ‘‘any credit union’s’’; 

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

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

19 the credit union of which the subject of the 

20 order is, or most recently was, an institution-af21 filiated party’’; and 

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

23 subparagraph: 

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

25 Board may issue an order under this paragraph 
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1 with respect to an individual who is an institu2 tion-affiliated party at a credit union at the 

3 time of an offense described in subparagraph 

4 (A) without regard to—

5 ‘‘(i) whether such individual is an in6 stitution-affiliated party at any credit 

7 union at the time the order is considered 

8 or issued by the Board; or 

9 ‘‘(ii) whether the credit union at 

10 which the individual was an institution-af11 filiated party at the time of the offense re12 mains in existence at the time the order is 

13 considered or issued by the Board.’’. 

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

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

16 amended by striking ‘‘(i)’’ at the beginning and in17 serting the following new subsection heading: 

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

19 FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN

20 CRIMINAL OFFENSES.—’’. 

21 SEC. 610. STREAMLINING DEPOSITORY INSTITUTION MERG22 ER APPLICATION REQUIREMENTS. 

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

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

25 is amended to read as follows: 
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1 ‘‘(4) REPORTS ON COMPETITIVE FACTORS.—

2 ‘‘(A) REQUEST FOR REPORT.—In the in3 terests of uniform standards and subject to 

4 subparagraph (B), the responsible agency shall, 

5 before acting on any application for approval of 

6 a merger transaction—

7 ‘‘(i) request a report on the competi8 tive factors involved from the Attorney 

9 General; and 

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

11 the Corporation (when the Corporation is 

12 not the responsible agency). 

13 ‘‘(B) CONCURRENT CONSIDERATION.—The 

14 responsible agency shall not be required to 

15 make a request under subparagraph (A) before 

16 acting on an application for approval of a merg17 er transaction if—

18 ‘‘(i) the agency finds that it must act 

19 immediately in order to prevent the prob20 able failure of a depository institution in21 volved in the transaction; or 

22 ‘‘(ii) the transaction consists of a 

23 merger between an insured depository in24 stitution and 1 or more affiliates of the de25 pository institution. 
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1 ‘‘(C) FURNISHING OF REPORT.—The re2 port requested under subparagraph (A) shall be 

3 furnished by the Attorney General to the re4 sponsible agency—

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

6 after the date on which the Attorney Gen7 eral received the request; or 

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

9 after such date, if the requesting agency 

10 advises the Attorney General that an emer11 gency exists requiring expeditious action.’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENT.—

13 Section 18(c)(6) of the Federal Deposit Insurance Act (12 

14 U.S.C. 1828(c)(6)) is amended—

15 (1) in the second sentence by striking ‘‘banks 

16 and savings associations involved’’ and inserting the 

17 following: ‘‘insured depository institutions involved, 

18 or if the proposed merger transaction is solely be19 tween an insured depository institution and 1 or 

20 more of affiliates of the depository institution,’’ and 

21 (2) by striking the penultimate sentence and in22 serting the following: ‘‘If the agency has advised the 

23 Attorney General under paragraph (4)(C)(ii) of the 

24 existence of an emergency requiring expeditious ac25 tion and has requested a report on the competitive 
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1 factors within 10 days, the transaction may not be 

2 consummated before the fifth calendar day after the 

3 date of approval by the agency.’’. 

4 SEC. 611. INCLUSION OF DIRECTOR OF THE OFFICE OF 

5 THRIFT SUPERVISION IN LIST OF BANKING 

6 AGENCIES REGARDING INSURANCE CUS7 TOMER PROTECTION REGULATIONS. 

8 Section 47(g)(2)(B)(i) of the Federal Deposit Insur9 ance Act (12 U.S.C. 1831x(g)(2)(B)(i)) is amended by in10 serting ‘‘the Director of the Office of Thrift Supervision,’’ 

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

12 SEC. 612. PROTECTION OF CONFIDENTIAL INFORMATION 

13 RECEIVED BY FEDERAL BANKING REGU14 LATORS FROM FOREIGN BANKING SUPER15 VISORS. 

16 Section 15 of the International Banking Act of 1978 

17 (12 U.S.C. 3109) is amended by adding at the end the 

18 following new subsection: 

19 ‘‘(c) CONFIDENTIAL INFORMATION RECEIVED FROM

20 FOREIGN SUPERVISORS.—

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (3), a Federal banking agency shall not be 

23 compelled to disclose information received from a 

24 foreign regulatory or supervisory authority if—
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1 ‘‘(A) the Federal banking agency deter2 mines that the foreign regulatory or supervisory 

3 authority has, in good faith, determined and 

4 represented to such Federal banking agency 

5 that public disclosure of the information would 

6 violate the laws applicable to that foreign regu7 latory or supervisory authority; and 

8 ‘‘(B) the relevant Federal banking agency 

9 obtained such information pursuant to—

10 ‘‘(i) such procedures as the Federal 

11 banking agency may establish for use in 

12 connection with the administration and en13 forcement of Federal banking laws; or 

14 ‘‘(ii) a memorandum of understanding 

15 or other similar arrangement between the 

16 Federal banking agency and the foreign 

17 regulatory or supervisory authority. 

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

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

20 5, United States Code, this subsection shall be treat21 ed as a statute described in subsection (b)(3)(B) of 

22 such section. 

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

24 section shall be construed as—
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1 ‘‘(A) authorizing any Federal banking 

2 agency to withhold any information from any 

3 duly authorized committee of the House of Rep4 resentatives or the Senate; or 

5 ‘‘(B) preventing any Federal banking 

6 agency from complying with an order of a court 

7 of the United States in an action commenced by 

8 the United States or such agency. 

9 ‘‘(4) FEDERAL BANKING AGENCY DEFINED.—

10 For purposes of this subsection, the term ‘Federal 

11 banking agency’ means the Board, the Comptroller, 

12 the Federal Deposit Insurance Corporation, and the 

13 Director of the Office of Thrift Supervision.’’. 

14 SEC. 613. PROHIBITION ON PARTICIPATION BY CONVICTED 

15 INDIVIDUAL. 

16 Section 19 of the Federal Deposit Insurance Act (12 

17 U.S.C. 1829) is amended by inserting after subsection (c) 

18 (as added by section 603 of this title) the following new 

19 subsections: 

20 ‘‘(d) BANK HOLDING COMPANIES.—Subsections (a) 

21 and (b) shall apply to any bank holding company, any sub22 sidiary (other than a bank) of a bank holding company, 

23 and any organization organized and operated under sec24 tion 25A of the Federal Reserve Act or operating under 

25 section 25 of the Federal Reserve Act as if such bank 
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1 holding company, subsidiary, or organization were an in2 sured depository institution, except such subsections shall 

3 be applied for purposes of this subsection by substituting 

4 ‘Board of Governors of the Federal Reserve System’ for 

5 ‘Corporation’ each place such term appears in such sub6 sections. 

7 ‘‘(e) SAVINGS AND LOAN HOLDING COMPANIES.—

8 Subsections (a) and (b) shall apply to any savings and 

9 loan holding company and any subsidiary (other than a 

10 savings association) of a savings and loan holding com11 pany as if such savings and loan holding company or sub12 sidiary were an insured depository institution, except such 

13 subsections shall be applied for purposes of this subsection 

14 by substituting ‘Director of the Office of Thrift Super15 vision’ for ‘Corporation’ each place such term appears in 

16 such subsections.’’. 

17 SEC. 614. CLARIFICATION THAT NOTICE AFTER SEPARA18 TION FROM SERVICE MAY BE MADE BY AN 

19 ORDER. 

20 (a) IN GENERAL.—Section 8(i)(3) of the Federal De21 posit Insurance Act (12 U.S.C. 1818(i)(3)) is amended by 

22 inserting ‘‘or order’’ after ‘‘notice’’ each place such term 

23 appears. 

24 (b) TECHNICAL AND CONFORMING AMENDMENT.—

25 The heading for section 8(i)(3) of the Federal Deposit In-
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1 surance Act (12 U.S.C. 1818(i)(3)) is amended by insert2 ing ‘‘OR ORDER’’ after ‘‘NOTICE’’. 

3 SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS 

4 REGARDING FDIC DEPOSIT INSURANCE COV5 ERAGE. 

6 (a) IN GENERAL.—Section 18(a) of the Federal De7 posit Insurance Act (12 U.S.C. 1828(a)) is amended by 

8 adding at the end the following new paragraph: 

9 ‘‘(4) FALSE ADVERTISING, MISUSE OF FDIC

10 NAMES, AND MISREPRESENTATION TO INDICATE IN11 SURED STATUS.—

12 ‘‘(A) PROHIBITION ON FALSE ADVER13 TISING AND MISUSE OF FDIC NAMES.—No per14 son may—

15 ‘‘(i) use the terms ‘Federal Deposit’, 

16 ‘Federal Deposit Insurance’, ‘Federal De17 posit Insurance Corporation’, any combina18 tion of such terms, or the abbreviation 

19 ‘FDIC’ as part of the business name or 

20 firm name of any person, including any 

21 corporation, partnership, business trust, 

22 association, or other business entity; or 

23 ‘‘(ii) use such terms or any other sign 

24 or symbol as part of an advertisement, so25 licitation, or other document, 
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1 to represent, suggest or imply that any deposit 

2 liability, obligation, certificate or share is in3 sured or guaranteed by the Federal Deposit In4 surance Corporation, if such deposit liability, 

5 obligation, certificate, or share is not insured or 

6 guaranteed by the Corporation. 

7 ‘‘(B) PROHIBITION ON MISREPRESENTA8 TIONS OF INSURED STATUS.—No person may 

9 knowingly misrepresent—

10 ‘‘(i) that any deposit liability, obliga11 tion, certificate, or share is federally in12 sured, if such deposit liability, obligation, 

13 certificate, or share is not insured by the 

14 Corporation; or 

15 ‘‘(ii) the extent to which or the man16 ner in which any deposit liability, obliga17 tion, certificate, or share is insured by the 

18 Federal Deposit Insurance Corporation, if 

19 such deposit liability, obligation, certificate, 

20 or share is not insured by the Corporation 

21 to the extent or in the manner represented. 

22 ‘‘(C) AUTHORITY OF FDIC.—The Corpora23 tion shall have—
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1 ‘‘(i) jurisdiction over any person that 

2 violates this paragraph, or aids or abets 

3 the violation of this paragraph; and 

4 ‘‘(ii) for purposes of enforcing the re5 quirements of this paragraph with regard 

6 to any person—

7 ‘‘(I) the authority of the Cor8 poration under section 10(c) to con9 duct investigations; and 

10 ‘‘(II) the enforcement authority 

11 of the Corporation under subsections 

12 (b), (c), (d) and (i) of section 8, 

13 as if such person were a state nonmember in14 sured bank. 

15 ‘‘(D) OTHER ACTIONS PRESERVED.—No 

16 provision of this paragraph shall be construed 

17 as barring any action otherwise available, under 

18 the laws of the United States or any State, to 

19 any Federal or State law enforcement agency or 

20 individual.’’. 

21 (b) ENFORCEMENT ORDERS.—Section 8(c) of the 

22 Federal Deposit Insurance Act (12 U.S.C. 1818(c)) is 

23 amended by adding at the end the following new para24 graph: 
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1 ‘‘(4) FALSE ADVERTISING OR MISUSE OF

2 NAMES TO INDICATE INSURED STATUS.—

3 ‘‘(A) TEMPORARY ORDER.—

4 ‘‘(i) IN GENERAL.—If a notice of 

5 charges served under subsection (b)(1) of 

6 this section specifies on the basis of par7 ticular facts that any person is engaged in 

8 conduct described in section 18(a)(4), the 

9 Corporation may issue a temporary order 

10 requiring—

11 ‘‘(I) the immediate cessation of 

12 any activity or practice described, 

13 which gave rise to the notice of 

14 charges; and 

15 ‘‘(II) affirmative action to pre16 vent any further, or to remedy any ex17 isting, violation. 

18 ‘‘(ii) EFFECT OF ORDER.—Any tem19 porary order issued under this subpara20 graph shall take effect upon service. 

21 ‘‘(B) EFFECTIVE PERIOD OF TEMPORARY

22 ORDER.—A temporary order issued under sub23 paragraph (A) shall remain effective and en24 forceable, pending the completion of an admin25 istrative proceeding pursuant to subsection 
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1 (b)(1) in connection with the notice of 

2 charges—

3 ‘‘(i) until such time as the Corpora4 tion shall dismiss the charges specified in 

5 such notice; or 

6 ‘‘(ii) if a cease-and-desist order is 

7 issued against such person, until the effec8 tive date of such order. 

9 ‘‘(C) CIVIL MONEY PENALTIES.—Violations 

10 of section 18(a)(4) shall be subject to civil 

11 money penalties as set forth in subsection (i) in 

12 an amount not to exceed $1,000,000 for each 

13 day during which the violation occurs or con14 tinues.’’. 

15 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

16 (1) Section 18(a)(3) of the Federal Deposit In17 surance Act (12 U.S.C. 1828(a)) is amended—

18 (A) in the 1st sentence by striking ‘‘of this 

19 subsection’’ and inserting ‘‘of paragraphs (1) 

20 and (2)’’; 

21 (B) by striking the 2nd sentence; and 

22 (C) in the 3rd sentence, by striking ‘‘of 

23 this subsection’’ and inserting ‘‘of paragraphs 

24 (1) and (2)’’. 
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1 (2) The heading for subsection (a) of section 18 

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

3 1828(a)) is amended by striking ‘‘INSURANCE

4 LOGO.—’’ and inserting ‘‘REPRESENTATIONS OF

5 DEPOSIT INSURANCE.—’’. 

6 SEC. 616. CHANGES REQUIRED TO SMALL BANK HOLDING 

7 COMPANY POLICY STATEMENT ON ASSESS8 MENT OF FINANCIAL AND MANAGERIAL FAC9 TORS. 

10 (a) SMALL BANK HOLDING COMPANY POLICY

11 STATEMENT ON ASSESSMENT OF FINANCIAL AND MANA12 GERIAL FACTORS.—

13 (1) IN GENERAL.—Before the end of the 6-

14 month period beginning on the date of the enact15 ment of this Act, the Board of Governors of the 

16 Federal Reserve System shall publish in the Federal 

17 Register proposed revisions to the Small Bank Hold18 ing Company Policy Statement on Assessment of Fi19 nancial and Managerial Factors (12 C.F.R. part 

20 225—appendix C) that provide that the policy shall 

21 apply to a bank holding company which has pro 

22 forma consolidated assets of less than 

23 $1,000,000,000 and that—

24 (A) is not engaged in any nonbanking ac25 tivities involving significant leverage; and 
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1 (B) does not have a significant amount of 

2 outstanding debt that is held by the general 

3 public. 

4 (2) ADJUSTMENT OF AMOUNT.—The Board of 

5 Governors of the Federal Reserve System shall an6 nually adjust the dollar amount referred to in para7 graph (1) in the Small Bank Holding Company Pol8 icy Statement on Assessment of Financial and Man9 agerial Factors by an amount equal to the percent10 age increase, for the most recent year, in total assets 

11 held by all insured depository institutions, as deter12 mined by the Board. 

13 (b) INCREASE IN DEBT-TO-EQUITY RATIO OF SMALL

14 BANK HOLDING COMPANY.—Before the end of the 6-

15 month period beginning on the date of the enactment of 

16 this Act, the Board of Governors of the Federal Reserve 

17 System shall publish in the Federal Register proposed re18 visions to the Small Bank Holding Company Policy State19 ment on Assessment of Financial and Managerial Factors 

20 (12 C.F.R. part 225—appendix C) such that the debt-to21 equity ratio allowable for a small bank holding company 

22 in order to remain eligible to pay a corporate dividend and 

23 to remain eligible for expedited processing procedures 

24 under Regulation Y of the Board of Governors of the Fed25 eral Reserve System would increase from 1:1 to 3:1. 
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1 SEC. 617. EXCEPTION TO ANNUAL PRIVACY NOTICE RE2 QUIREMENT UNDER THE GRAMM-LEACH-BLI3 LEY ACT. 

4 Section 503 of the Gramm-Leach-Bliley Act (15 

5 U.S.C. 6803) is amended by adding the following new sub6 section: 

7 ‘‘(c) EXCEPTION TO ANNUAL NOTICE REQUIRE8 MENT.—A financial institution that—

9 ‘‘(1) provides nonpublic personal information 

10 only in accordance with the provisions of subsection 

11 (b)(2) or (e) of section 502 or regulations prescribed 

12 under section 504(b); 

13 ‘‘(2) does not share information with affiliates 

14 under section 603(d)(2)(A) of the Fair Credit Re15 porting Act; and 

16 ‘‘(3) has not changed its policies and practices 

17 with regard to disclosing nonpublic personal infor18 mation from the policies and practices that were dis19 closed in the most recent disclosure sent to con20 sumers in accordance with this subsection, 

21 shall not be required to provide an annual disclosure under 

22 this subsection until such time as the financial institution 

23 fails to comply with any criteria described in paragraph 

24 (1), (2), or (3).’’. 
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1 SEC. 618. BIENNIAL REPORTS ON THE STATUS OF AGENCY 

2 EMPLOYMENT OF MINORITIES AND WOMEN. 

3 (a) IN GENERAL.—Before December 31, 2005, and 

4 the end of each 2-year period beginning after such date, 

5 each Federal banking agency shall submit a report to the 

6 Congress on the status of the employment by the agency 

7 of minority individuals and women. 

8 (b) FACTORS TO BE INCLUDED.—The report shall 

9 include a detailed assessment of each of the following: 

10 (1) The extent of hiring of minority individuals 

11 and women by the agency as of the time the report 

12 is prepared. 

13 (2) The successes achieved and challenges faced 

14 by the agency in operating minority and women out15 reach programs. 

16 (3) Challenges the agency may face in finding 

17 qualified minority individual and women applicants. 

18 (4) Such other information, findings, and con19 clusions, and recommendations for legislative or 

20 agency action, as the agency may determine to be 

21 appropriate to include in the report. 

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

23 following definitions shall apply: 

24 (1) FEDERAL BANKING AGENCY.—The term 

25 ‘‘Federal banking agency’’—
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1 (A) has the same meaning as in section 

2 3(z) of the Federal Deposit Insurance Act; and 

3 (B) includes the National Credit Union 

4 Administration. 

5 (2) MINORITY.—The term ‘‘minority’’ has the 

6 same meaning as in section 1204(c)(3) of the Finan7 cial Institutions Reform, Recovery, and Enforcement 

8 Act of 1989. 

9 SEC. 619. COORDINATION OF STATE EXAMINATION AU10 THORITY. 

11 Section 10(h) of the Federal Deposit Insurance Act 

12 (12 U.S.C. 1820(h)) is amended to read as follows: 

13 ‘‘(h) COORDINATION OF EXAMINATION AUTHOR14 ITY.—

15 ‘‘(1) STATE BANK SUPERVISORS OF HOME AND

16 HOST STATES .—

17 ‘‘(A) HOME STATE OF BANK.—The appro18 priate State bank supervisor of the home State 

19 of an insured State bank has authority to ex20 amine and supervise the bank. 

21 ‘‘(B) HOST STATE BRANCHES.—The State 

22 bank supervisor of the home State of an in23 sured State bank and any State bank super24 visor of an appropriate host State shall exercise 

25 their respective authority to supervise and ex-
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1 amine the branches of the bank in a host State 

2 in accordance with the terms of any applicable 

3 cooperative agreement between the home State 

4 bank supervisor and the State bank supervisor 

5 of the relevant host State. 

6 ‘‘(C) SUPERVISORY FEES.—Except as ex7 pressly provided in a cooperative agreement be8 tween the State bank supervisors of the home 

9 State and any host State of an insured State 

10 bank, only the State bank supervisor of the 

11 home State of an insured State bank may levy 

12 or charge State supervisory fees on the bank. 

13 ‘‘(2) HOST STATE EXAMINATION.—

14 ‘‘(A) IN GENERAL.—With respect to a 

15 branch operated in a host State by an out-of16 State insured State bank that resulted from an 

17 interstate merger transaction approved under 

18 section 44 or that was established in such State 

19 pursuant to section 5155(g) of the Revised 

20 Statutes, the third undesignated paragraph of 

21 section 9 of the Federal Reserve Act or section 

22 18(d)(4) of this Act, the appropriate State bank 

23 supervisor of such host State may—

24 ‘‘(i) with written notice to the State 

25 bank supervisor of the bank’s home State 
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1 and subject to the terms of any applicable 

2 cooperative agreement with the State bank 

3 supervisor of such home State, examine 

4 such branch for the purpose of determining 

5 compliance with host State laws that are 

6 applicable pursuant to section 24(j) of this 

7 Act, including those that govern commu8 nity reinvestment, fair lending, and con9 sumer protection; and 

10 ‘‘(ii) if expressly permitted under and 

11 subject to the terms of a cooperative agree12 ment with the State bank supervisor of the 

13 bank’s home State or if such out-of-State 

14 insured State bank has been determined to 

15 be in a troubled condition by either the 

16 State bank supervisor of the bank’s home 

17 State or the bank’s appropriate Federal 

18 banking agency, participate in the exam19 ination of the bank by the State bank su20 pervisor of the bank’s home State to ascer21 tain that the activities of the branch in 

22 such host State are not conducted in an 

23 unsafe or unsound manner. 

24 ‘‘(B) NOTICE OF DETERMINATION.—
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1 ‘‘(i) IN GENERAL.—The State bank 

2 supervisor of the home State of an insured 

3 State bank should notify the State bank 

4 supervisor of each host State of the bank 

5 if there has been a final determination that 

6 the bank is in a troubled condition. 

7 ‘‘(ii) TIMING OF NOTICE.—The State 

8 bank supervisor of the home State of an 

9 insured State bank should provide notice 

10 under clause (i) as soon as reasonably pos11 sible but in all cases within 15 business 

12 days after the State bank supervisor has 

13 made such final determination or has re14 ceived written notification of such final de15 termination. 

16 ‘‘(3) HOST STATE ENFORCEMENT.—If the State 

17 bank supervisor of a host State determines that a 

18 branch of an out-of-State State insured State bank 

19 is violating any law of the host State that is applica20 ble to such branch pursuant to section 24(j) of this 

21 Act, including a law that governs community rein22 vestment, fair lending, or consumer protection, the 

23 State bank supervisor of the host State or, to the ex24 tent authorized by the law of the host State, a host 

25 State law enforcement officer may, with written no-
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1 tice to the State bank supervisor of the bank’s home 

2 State and subject to the terms of any applicable co3 operative agreement with the State bank supervisor 

4 of the bank’s home State, undertake such enforce5 ment actions and proceedings as would be permitted 

6 under the law of the host State as if the branch 

7 were a bank chartered by that host State. 

8 ‘‘(4) COOPERATIVE AGREEMENT.—

9 ‘‘(A) IN GENERAL.—The State bank super10 visors from 2 or more States may enter into co11 operative agreements to facilitate State regu12 latory supervision of State banks, including co13 operative agreements relating to the coordina14 tion of examinations and joint participation in 

15 examinations. For purposes of this subsection 

16 (h), the term ‘cooperative agreement’ means a 

17 written agreement that is signed by the home 

18 State bank supervisor and host State bank su19 pervisor to facilitate State regulatory super20 vision of State banks and includes nationwide 

21 or multi-state cooperative agreements and coop22 erative agreements solely between the home 

23 State and host State. 

24 ‘‘(B) RULE OF CONSTRUCTION.—Except 

25 for State bank supervisors, no provision of this 
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1 subsection relating to such cooperative agree2 ments shall be construed as limiting in any way 

3 the authority of home and host State law en4 forcement officers, regulatory supervisors, or 

5 other officials that have not signed such cooper6 ative agreements to enforce host State laws that 

7 are applicable to a branch of an out-of-State in8 sured State bank located in the host State pur9 suant to section 24(j) of this Act. 

10 ‘‘(5) FEDERAL REGULATORY AUTHORITY.—No 

11 provision of this subsection shall be construed as 

12 limiting in any way the authority of any Federal 

13 banking agency. 

14 ‘‘(6) STATE TAXATION AUTHORITY NOT AF15 FECTED.—No provision of this subsection (h) shall 

16 be construed as affecting the authority of any State 

17 or political subdivision of any State to adopt, apply, 

18 or administer any tax or method of taxation to any 

19 bank, bank holding company, or foreign bank, or 

20 any affiliate of any bank, bank holding company, or 

21 foreign bank, to the extent such tax or tax method 

22 is otherwise permissible by or under the Constitution 

23 of the United States or other Federal law. 

24 ‘‘(7) DEFINITIONS.—For purpose of this sec25 tion, the following definition shall apply: 
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1 ‘‘(A) HOST STATE, HOME STATE, OUT-OF2 STATE BANK.—The terms ‘host State’, ‘home 

3 State’, and ‘out-of-State bank’ have the same 

4 meanings as in section 44(g). 

5 ‘‘(B) STATE SUPERVISORY FEES.—The 

6 term ‘State supervisory fees’ means assess7 ments, examination fees, branch fees, license 

8 fees, and all other fees that are levied or 

9 charged by a State bank supervisor directly 

10 upon an insured State bank or upon branches 

11 of an insured State bank. 

12 ‘‘(C) TROUBLED CONDITION.—Solely for 

13 purposes of subparagraph (2)(B) of this sub14 section (h), an insured State bank has been de15 termined to be in ‘troubled condition’ if the 

16 bank—

17 ‘‘(i) has a composite rating, as deter18 mined in its most recent report of exam19 ination, of 4 or 5 under the Uniform Fi20 nancial Institutions Ratings System 

21 (UFIRS); or 

22 ‘‘(ii) is subject to a proceeding initi23 ated by the Corporation for termination or 

24 suspension of deposit insurance; or 
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1 ‘‘(iii) is subject to a proceeding initi2 ated by the State bank supervisor of the 

3 bank’s home State to vacate, revoke, or 

4 terminate the charter of the bank, or to 

5 liquidate the bank, or to appoint a receiver 

6 for the bank. 

7 ‘‘(D) FINAL DETERMINATION.—For the 

8 purposes of paragraph (2)(B), the term ‘final 

9 determination’ means the transmittal of a re10 port of examination to the bank or transmittal 

11 of official notice of proceedings to the bank.’’. 

12 SEC. 620. NONWAIVER OF PRIVILEGES. 

13 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

14 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) 

15 is amended by adding at the end the following new sub16 section: 

17 ‘‘(x) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO

18 BANKING AGENCY OR SUPERVISOR.—

19 ‘‘(1) IN GENERAL.—The submission by any per20 son of any information to any Federal banking agen21 cy, State bank supervisor, or foreign banking au22 thority for any purpose in the course of any super23 visory or regulatory process of such agency, super24 visor, or authority shall not be construed as waiving, 

25 destroying, or otherwise affecting any privilege such 
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1 person may claim with respect to such information 

2 under Federal or State law as to any person or enti3 ty other than such agency, supervisor, or authority. 

4 ‘‘(2) RULE OF CONSTRUCTION.—No provision 

5 of paragraph (1) may be construed as implying or 

6 establishing that—

7 ‘‘(A) any person waives any privilege appli8 cable to information that is submitted or trans9 ferred under any circumstance to which para10 graph (1) does not apply; or 

11 ‘‘(B) any person would waive any privilege 

12 applicable to any information by submitting the 

13 information to any Federal banking agency, 

14 State bank supervisor, or foreign banking au15 thority, but for this subsection.’’. 

16 (b) INSURED CREDIT UNIONS.—Section 205 of the 

17 Federal Credit Union Act (12 U.S.C.1785) is amended by 

18 adding at the end the following new subsection: 

19 ‘‘(j) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO

20 BANKING AGENCY OR SUPERVISOR.—

21 ‘‘(1) IN GENERAL.—The submission by any per22 son of any person to the Administration, any State 

23 credit union supervisor, or foreign banking authority 

24 for any purpose in the course of any supervisory or 

25 regulatory process of such Board, supervisor, or au-
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1 thority shall not be construed as waiving, destroying, 

2 or otherwise affecting any privilege such person may 

3 claim with respect to such information under Fed4 eral or State law as to any person or entity other 

5 than such Board, supervisor, or authority. 

6 ‘‘(2) RULE OF CONSTRUCTION.—No provision 

7 of paragraph (1) may be construed as implying or 

8 establishing that—

9 ‘‘(A) any person waives any privilege appli10 cable to information that is submitted or trans11 ferred under any circumstance to which para12 graph (1) does not apply; or 

13 ‘‘(B) any person would waive any privilege 

14 applicable to any information by submitting the 

15 information to the Administration, any State 

16 credit union supervisor, or foreign banking au17 thority, but for this subsection.’’. 

18 SEC. 621. RIGHT TO FINANCIAL PRIVACY ACT OF 1978 

19 AMENDMENT. 

20 Paragraph (1) of section 1101 of the Right to Finan21 cial Privacy Act of 1978 (12 U.S.C. 3401) is amended 

22 by inserting ‘‘(including any lender who advances funds 

23 on pledges of personal property)’’ after ‘‘consumer finance 

24 institution’’. 
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1 TITLE VII—‘‘BSA’’ COMPLIANCE 

2 BURDEN REDUCTION 

3 SEC. 701. REFORM OF THE CURRENCY TRANSACTION RE4 PORT EXEMPTION SYSTEM. 

5 (a) FINDINGS.—The Congress finds as follows: 

6 (1) The completion of and filing of currency 

7 transaction reports under section 5313 of title 31, 

8 United States Code, poses a compliance burden on 

9 the financial industry. 

10 (2) Due to the nature of the transactions or the 

11 persons and entities conducting such transactions, 

12 certain such reports as currently filed do not appear 

13 to be relevant to the detection, deterrence, or inves14 tigation of financial crimes, including money laun15 dering and the financing of terrorism. 

16 (3) However, the data contained in such reports 

17 can provide valuable context for the analysis of other 

18 data derived pursuant to subchapter II of chapter 

19 53 of title 31, United States Code, as well as inves20 tigative data, which provides invaluable and indis21 pensable information supporting efforts to combat 

22 money laundering and other financial crimes. 

23 (4) An exemption from the reporting require24 ments for certain currency transactions that are of 

25 little or no value to ongoing efforts of law enforce-
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1 ment agencies, financial regulatory agencies, and the 

2 financial services industry to investigate, detect, or 

3 deter financial crimes would serve to balance the 

4 burden placed on members of the financial services 

5 industry with the compelling need to produce and 

6 provide meaningful information to policy-makers, fi7 nancial regulators, law enforcement and intelligence 

8 agencies. 

9 (5) The Secretary of the Treasury has by regu10 lation, and in accordance with section 5313 of title 

11 31, United States Code, implemented a process by 

12 which institutions may seek exemptions from filing 

13 certain currency transaction reports based on appro14 priate circumstances; however, the existing exemp15 tion process has not adequately balanced the burden 

16 on the financial industry with the government’s need 

17 for data to support its efforts in combating financial 

18 crime. 

19 (b) ADDITIONAL FLEXIBILITY FOR CURRENCY

20 TRANSACTION REPORT EXEMPTION REVIEW PROCESS.—

21 (1) REVIEW OF EXISTING DISCRETIONARY EX22 EMPTION.—

23 (A) IN GENERAL.—Section 5313(e)(5)(A) 

24 of title 31, United States Code, is amended by 

25 striking ‘‘, at least once each year, the qualified 
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1 business customers’’ and inserting ‘‘, at such 

2 time and in such manner as the Secretary may 

3 prescribe, any qualified business customer’’. 

4 (B) TECHNICAL AND CONFORMING AMEND5 MENT.—The heading for section 5313(e)(5)(A) 

6 of title 31, United States Code, is amended by 

7 striking ‘‘ANNUAL REVIEW’’ and inserting 

8 ‘‘PERIODIC REVIEW AUTHORIZED’’. 

9 (2) PORTABILITY OF EXISTING DISCRETIONARY

10 EXEMPTION.—Section 5313(e)(6) of title 31, United 

11 States Code, is amended to read as follows: 

12 ‘‘(6) CONTINUITY OF EXEMPTION.—If any de13 pository institution has been granted an exemption 

14 under this subsection with respect to any qualified 

15 business customer for more than such minimum pe16 riod of time as the Secretary determines to be ap17 propriate, no provision of this subsection shall be 

18 construed as denying the eligibility of any other de19 pository institution to be granted an exemption for 

20 the same business customer immediately upon the 

21 transfer of the business relationship (that formed 

22 the basis of the exemption) by such customer from 

23 the former depository institution to the latter deposi24 tory institution, if the latter depository institution 
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1 submits reports to the Secretary under this section 

2 electronically.’’. 

3 (c) REVIEW OF AND REPORT ON ADDITIONAL REGU4 LATORY OR LEGISLATIVE CHANGES.—

5 (1) REVIEW REQUIRED.—Before the end of the 

6 3-month period beginning on the date of the enact7 ment of this Act, the Secretary of the Treasury shall 

8 conduct a review of the currency transaction report 

9 exemption process to determine what regulatory or 

10 legislative changes are appropriate to balance the 

11 burden of the currency transaction reporting re12 quirements under subchapter II of chapter 53 of 

13 title 31, United States Code, on depository institu14 tions with the compelling analytical and investigative 

15 needs of the Federal Government. 

16 (2) ISSUES TO BE CONSIDERED.—The review 

17 conducted under paragraph (1) shall include consid18 eration of the following issues: 

19 (A) SEASONED CUSTOMERS.—The estab20 lishment of new criteria for exempting trans21 actions of seasoned customers of domestic fi22 nancial institutions that do not have a high de23 gree of usefulness for law enforcement purposes 

24 (and are not already exempt under section 
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1 5313(d) of title 31, United States Code, and 

2 regulations prescribed under such section). 

3 (B) AUTHORIZED REVIEW OF DISCRE4 TIONARY EXEMPTIONS.—The modification or 

5 elimination of regulations relating to reviews of 

6 discretionary exemptions that are affected by 

7 the amendments made by subsection (b)(1) and 

8 the consideration of the conditions or cir9 cumstances under which any review under sec10 tion 5313(e)(5)(A) of title 31, United States 

11 Code, of an existing discretionary exemption 

12 should take place. 

13 (C) RISK-BASED ASSESSMENT OF NEW

14 CUSTOMERS.—The feasibility of establishing a 

15 risk-based assessment system for determining 

16 when to allow any exemption under section 

17 5313(e) of title 31, United States Code, with 

18 respect to new business customers. 

19 (D) RECERTIFICATION OF DISCRETIONARY

20 EXEMPTIONS.—The modification or elimination 

21 of any requirement for any mandatory refiling, 

22 on a fixed schedule, for the continuation of any 

23 discretionary exemption of a qualified business 

24 customer under section 5313(e) of title 31, 

25 United States Code, unless a change occurs in 
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1 the conditions or circumstances surrounding the 

2 transactions or the business covered by the 

3 original exemption. 

4 (E) CHANGES IN CONDITIONS AND CIR5 CUMSTANCES.—The modification of the criteria 

6 for determining when a new exemption is re7 quired due to changes in the conditions or cir8 cumstances surrounding the transactions or the 

9 business covered by the original exemption. 

10 (F) NOTICE AND DISAPPROVAL.—The es11 tablishment of a notice and disapproval system 

12 under which a request for an exemption from 

13 the currency transaction reporting requirement 

14 under section 5313(e) would be deemed to have 

15 been approved, subject to the Secretary’s au16 thority to revoke any exemption, by the end of 

17 a specified time period unless disapproved by 

18 the Secretary or a designee of the Secretary be19 fore the end of such period, subject to such con20 ditions and limitations as may be appropriate. 

21 (G) REVOCATION PROCESS.—The estab22 lishment of a clear process for—

23 (i) the acquisition of additional infor24 mation by the Secretary from depository 
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1 institutions relating to exemptions granted 

2 under such section 5313(e); and 

3 (ii) the revocation of any such exemp4 tion. 

5 (3) REPORT TO CONGRESS.—Upon completion 

6 of the review under paragraph (1), the Secretary of 

7 the Treasury shall promptly submit a report on the 

8 findings and conclusions of the Secretary with re9 spect to the review to the Committee on Financial 

10 Services of the House of Representatives and the 

11 Committee on Banking, Housing, and Urban Affairs 

12 of the Senate, together with such recommendations 

13 for legislative and administrative actions as the Sec14 retary may determine to be appropriate. 

15 (d) REFORM OF CTR EXEMPTION PROCESS.—Before 

16 the end of the 9-month period beginning on the date of 

17 the submission of the report to Congress under subsection 

18 (c)(3), the Secretary of the Treasury shall prescribe regu19 lations implementing appropriate changes to the currency 

20 transaction report exemption process consistent with the 

21 review and recommendations of the Secretary under sub22 section (c). 
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1 SEC. 702. REDUCTION IN INCONSISTENCIES IN MONETARY 

2 TRANSACTION RECORDKEEPING AND RE3 PORTING ENFORCEMENT AND EXAMINATION 

4 REQUIREMENTS. 

5 (a) SENSE OF THE CONGRESS.—It is the sense of the 

6 Congress that inconsistencies and redundancies among 

7 regulations implementing monetary transaction record8 keeping and reporting enforcement programs under sec9 tion 8 of the Federal Deposit Insurance Act, section 

10 206(q) of the Federal Credit Union Act, and chapter II 

11 of chapter 53 of title 31, United States Code by the Sec12 retary of the Treasury and the Federal banking agen13 cies—

14 (1) increase the difficulty depository institutions 

15 have in complying with congressional intent in cre16 ating such enforcement programs, 

17 (2) reduce the transparency and clarity of the 

18 regulatory regime; 

19 (3) increase the potential for conflict among the 

20 various regulations in the future; and 

21 (4) contribute to the perception that various 

22 agencies involved in the enforcement of the monetary 

23 transaction recordkeeping and reporting require24 ments apply such requirements inconsistently. 
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1 (b) AGENCY COORDINATION OF MONETARY TRANS2 ACTION RECORDKEEPING AND REPORTING REQUIRE3 MENTS.—

4 (1) ENFORCEMENT PROGRAMS.—

5 (A) FEDERAL DEPOSIT INSURANCE ACT.—

6 Section 8(s) of the Federal Deposit Insurance 

7 Act (12 U.S.C. 1818(s)) is amended by adding 

8 at the end the following new paragraph: 

9 ‘‘(4) COORDINATION ON UNIFORM REQUIRE10 MENTS.—In prescribing regulations under paragraph 

11 (1), the Federal banking agencies, acting through 

12 the Financial Institutions Examination Council, 

13 shall—

14 ‘‘(A) consult with each other, the National 

15 Credit Union Administration Board, and the 

16 Secretary of the Treasury; and 

17 ‘‘(B) take such action as may be necessary 

18 to ensure that the requirements for procedures 

19 established pursuant to such regulations, and 

20 the examination standards for reviewing such 

21 procedures, are congruent and reasonably uni22 form (taking into account differences in the 

23 form and function of the institutions subject to 

24 such requirements).’’. 
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1 (B) FEDERAL CREDIT UNION ACT.—Sec2 tion 206(q) of the Federal Credit Union Act 

3 (12 U.S.C. 1786(q)) is amended by adding at 

4 the end the following new paragraph: 

5 ‘‘(4) COORDINATION ON UNIFORM REQUIRE6 MENTS.—In prescribing regulations under paragraph 

7 (1), the Board, acting through the Financial Institu8 tions Examination Council, shall—

9 ‘‘(A) consult with the Federal banking 

10 agencies and the Secretary of the Treasury; and 

11 ‘‘(B) take such action as may be necessary 

12 to ensure that the requirements for procedures 

13 established pursuant to such regulations, and 

14 the examination standards for reviewing such 

15 procedures, are congruent and reasonably uni16 form (taking into account differences in the 

17 form and function of the institutions subject to 

18 such requirements).’’. 

19 (2) EXAMINATION STANDARDS AND DIS20 PUTES.—Section 1006 of the Federal Financial In21 stitutions Examination Council Act (12 U.S.C. 

22 3305) is amended by adding at the end the following 

23 new subsection: 
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1 ‘‘(h) MONETARY TRANSACTION RECORDKEEPING

2 AND REPORTING REQUIREMENTS.—The Council and the 

3 Secretary of the Treasury shall jointly establish—

4 ‘‘(1) uniform standards and principles applica5 ble to the examination of financial institutions to en6 sure compliance with the requirements of subchapter 

7 II of chapter 53, United States Code, sections 8(s) 

8 and 21 of the Federal Deposit Insurance Act, and 

9 section 206(q) of the Federal Credit Union Act; and 

10 ‘‘(2) a clear policy statement on appropriate 

11 processes for resolving examiner-institution disagree12 ments concerning the application of subchapter II of 

13 chapter 53, United States Code, sections 8(s) and 

14 21 of the Federal Deposit Insurance Act, and sec15 tion 206(q) of the Federal Credit Union Act to fi16 nancial institutions.’’. 

17 (3) EFFECTIVE DATE.—The Federal banking 

18 agencies, the National Credit Union Administration 

19 Board, the Financial Institutions Examination 

20 Council, and the Secretary of the Treasury shall 

21 commence the discussions and consultations required 

22 under the amendments made by this subsection as 

23 soon as practicable after the date of the enactment 

24 of this Act. 
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1 (c) REVIEW OF AND REPORT ON ADDITIONAL REGU2 LATORY OR LEGISLATIVE CHANGES.—

3 (1) REVIEW REQUIRED.—Before the end of the 

4 3-month period beginning on the date of the enact5 ment of this Act, the Secretary of the Treasury shall 

6 conduct a review of the potential inconsistencies in, 

7 or redundancies among, the regulations pertaining to 

8 the application of the requirements of subchapter II 

9 of chapter 53, United States Code, sections 8(s) and 

10 21 of the Federal Deposit Insurance Act, and sec11 tion 206(q) of the Federal Credit Union Act to fi12 nancial institutions. 

13 (2) REPORT TO CONGRESS AND THE FINANCIAL

14 INSTITUTIONS EXAMINATION COUNCIL.—Upon com15 pletion of the review under paragraph (1), the Sec16 retary of the Treasury shall promptly submit a re17 port on the findings and conclusions of the Secretary 

18 with respect to the review to the Committee on Fi19 nancial Services of the House of Representatives and 

20 the Committee on Banking, Housing, and Urban Af21 fairs of the Senate, together with such recommenda22 tions for legislative and administrative actions as the 

23 Secretary may determine to be appropriate, and 

24 shall transmit a copy of such report to the members 

25 of the Financial Institutions Examination Council. 
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1 (d) REFORM OF APPLICATION OF MONETARY TRANS2 ACTION RECORDKEEPING AND REPORTING REQUIRE3 MENTS TO FINANCIAL INSTITUTIONS.—Before the end of 

4 the 9-month period beginning on the date of the submis5 sion of the report to Congress under subsection (c)(2), the 

6 Secretary of the Treasury shall prescribe regulations im7 plementing appropriate changes to regulations within the 

8 jurisdiction of the Secretary to remedy redundancies or 

9 inconsistencies identified in the review by, and included 

10 in the recommendations of, the Secretary under subsection 

11 (c). 

12 SEC. 703. ADDITIONAL REFORMS RELATING TO MONETARY 

13 TRANSACTION AND RECORDKEEPING RE14 QUIREMENTS APPLICABLE TO FINANCIAL IN15 STITUTIONS. 

16 (a) NOTIFICATION OF OFFICERS AND DIRECTORS OF

17 FINANCIAL INSTITUTIONS.—Before the end of the 6-

18 month period beginning on the date of the enactment of 

19 this Act, the Secretary of the Treasury shall—

20 (1) review any regulation, guideline, or guid21 ance of the Secretary, any Federal banking agency, 

22 or the National Credit Union Administration Board 

23 that serves as the basis for any requirement to pro24 vide notice to any officer or director of a depository 

25 institution of any suspicious activity report sub-
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1 mitted by the depository institution to the Secretary 

2 and any such agency or Board; 

3 (2) modify or eliminate any such requirement of 

4 the Secretary that the Secretary determines is not 

5 necessary to achieve the purposes of section 5318(g) 

6 of title 31, United States Code; and 

7 (3) make a recommendation to any Federal 

8 banking agency or the National Credit Union Ad9 ministration Board to modify or eliminate any such 

10 requirement of such agency or Board that the Sec11 retary determines is not necessary to achieve the 

12 purposes of section 5318(g) of title 31, United 

13 States Code. 

14 (b) ELIMINATION OF UNNECESSARY VERIFICATION

15 REQUIREMENTS APPLICABLE TO THE PURCHASE OF FI16 NANCIAL INSTRUMENTS.—Before the end of the 9-month 

17 period beginning on the date of the enactment of this Act, 

18 the Secretary of the Treasury shall—

19 (1) review all verification of customer identity 

20 requirements as they relate to the purchases of mon21 etary instruments by customers of depository institu22 tions, including the regulations codified in section 

23 103.29(a)(ii) of title 31, Code of Federal Regula24 tions; and 
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1 (2) modify or eliminate any customer identity 

2 requirement related to the purchases of monetary in3 struments by customers of depository institutions 

4 codified in section 103.29(a)(ii) of title 31, Code of 

5 Federal Regulations, that the Secretary determines 

6 is unnecessary. 

7 (c) ELIMINATION OF RECURRING FILINGS OF SUS8 PICIOUS ACTIVITY REPORTS ON A SINGLE TRANS9 ACTION.—Before the end of the 9-month period beginning 

10 on the date of the enactment of this Act, the Secretary 

11 of the Treasury shall prescribe regulations, or issue other 

12 forms of guidance, that eliminate the need for depository 

13 institutions to file recurring suspicious activity reports on 

14 the same transaction unless there has been a subsequent 

15 change in any pattern of activity involving any person who 

16 was connected with the transaction. 

17 (d) ELECTRONIC ACKNOWLEDGEMENT OF CERTAIN

18 ELECTRONIC FILINGS.—Before the end of the 6-month 

19 period beginning on the date of the enactment of this Act, 

20 the Director of the Financial Crimes Enforcement Net21 work shall put into effect a system for promptly furnishing 

22 an electronic acknowledgement of receipt to any institu23 tion that files a form with FinCEN under subchapter II 

24 of chapter 53 of title 31, United States Code, through the 

25 Network’s electronic filing system. 
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1 SEC. 704. STUDY BY COMPTROLLER GENERAL. 

2 (a) STUDY REQUIRED.—The Comptroller General of 

3 the United States shall conduct a study on methods and 

4 practices which would—

5 (1) reduce the overall number of currency 

6 transaction reports filed with the Secretary of the 

7 Treasury under section 5313(a) of title 31, United 

8 States Code, while ensuring that the needs of the 

9 Secretary, the Financial Crimes Enforcement Net10 work, law enforcement agencies, and financial insti11 tution regulatory agencies continue to be met; 

12 (2) improve financial institution utilization of 

13 the current exemption provisions; and 

14 (3) mitigate the difficulties in the current im15 plementation of such exemption provisions that limit 

16 the utility of the exemption process for financial in17 stitutions. 

18 (b) REPORT.—Before the end of the 6-month period 

19 beginning on the date of the enactment of this Act, the 

20 Comptroller General shall submit a report to the Com21 mittee on Financial Services of the House of Representa22 tives and the Committee on Banking, Housing, and Urban 

23 Affairs of the Senate on the findings and conclusions of 

24 the Comptroller General with respect to the study con25 ducted under subsection (a) and such recommendations 
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1 for legislative and administrative action as the Comp2 troller General may determine to be appropriate. 

3 SEC. 705. FEASIBILITY STUDY REQUIRED. 

4 (a) IN GENERAL.—For the purpose of simplifying, 

5 and increasing compliance with, the various recordkeeping 

6 and reporting requirements under subchapter II of chap7 ter 53 of title 31, United States Code, chapter 2 of title 

8 I of Public Law 91—508, and section 21 of the Federal 

9 Deposit Insurance Act, and regulations prescribed under 

10 such provisions of law, the Secretary of the Treasury 

11 (hereafter in this section referred to as the ‘‘Secretary’’) 

12 shall conduct a study on the feasibility of developing and 

13 implementing interfaces and templates for use in elec14 tronic communications between financial institutions (as 

15 defined in section 5312 of title 31, United States Code) 

16 and the Secretary, the Financial Crimes Enforcement 

17 Network, and other Federal financial institution regu18 latory agencies. 

19 (b) FACTORS TO BE CONSIDERED.—In conducting 

20 the study required under subsection (a), the Secretary 

21 shall take into account—

22 (1) any procedures required to be maintained 

23 by financial institutions under regulations prescribed 

24 pursuant to section 5318(a)(2) of title 31 of the 

25 United States Code and the manner in which the 
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1 use of interfaces and templates which might be de2 veloped could lessen the burden of complying with 

3 such procedures; and 

4 (2) any exemptions prescribed by the Secretary 

5 under paragraph (5) or (6) of such section 5318(a) 

6 and the manner in which interfaces and templates 

7 which might be developed could be programmed to 

8 reflect any such exemption for a financial institu9 tion, transaction, or class of transactions. 

10 (c) PROTOTYPE AND REPORT REQUIRED.—

11 (1) IN GENERAL.—Before the end of the 1-year 

12 period beginning on the date of the enactment of 

13 this Act, the Secretary shall submit a report to the 

14 Congress containing a detailed description of the 

15 findings and conclusions of the Secretary in connec16 tion with the study required under subsection (a), 

17 together with such recommendations for legislative 

18 or administrative action as the Secretary may deter19 mine to be appropriate. 

20 (2) PROTOTYPE.—Any recommendation on the 

21 feasibility of developing and implementing interfaces 

22 and templates for use in electronic communications 

23 shall be accompanied by prototypes of such inter24 faces and templates that demonstrate such feasi25 bility. 
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1 (d) DEFINITIONS.—For purposes of this section, the 

2 following definitions shall apply: 

3 (1) INTERFACE.—The term ‘‘interface’’ means 

4 the point and method of interaction between any 2 

5 or more electronic data storage and communication 

6 systems that permits and facilitates active electronic 

7 communication between or among the systems, in8 cluding any procedures, codes, and protocols that en9 able the systems to interact. 

10 (2) TEMPLATE.—The term ‘‘template’’ means a 

11 preestablished layout model using word processing or 

12 other authoring software that ensures that data en13 tered into it will adhere to a consistent format and 

14 content scheme when used by all parties engaged in 

15 electronic communications among each other. 

16 TITLE VIII—CLERICAL AND 

17 TECHNICAL AMENDMENTS 

18 SEC. 801. CLERICAL AMENDMENTS TO THE HOME OWNERS’

19 LOAN ACT. 

20 (a) AMENDMENT TO TABLE OF CONTENTS.—The 

21 table of contents in section 1 of the Home Owners’ Loan 

22 Act (12 U.S.C. 1461) is amended by striking the items 

23 relating to sections 5 and 6 and inserting the following 

24 new items:

‘‘Sec. 5. Savings associations. 

‘‘Sec. 6. [Repealed.].’’.
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1 (b) CLERICAL AMENDMENTS TO HEADINGS.—

2 (1) The heading for section 4(a) of the Home 

3 Owners’ Loan Act (12 U.S.C. 1463(a)) is amended 

4 by striking ‘‘(a) FEDERAL SAVINGS ASSOCIA5 TIONS.—’’ and inserting ‘‘(a) GENERAL RESPON6 SIBILITIES OF THE DIRECTOR.—’’. 

7 (2) The section heading for section 5 of the 

8 Home Owners’ Loan Act (12 U.S.C. 1464) is 

9 amended to read as follows: 

10 ‘‘SEC. 5. SAVINGS ASSOCIATIONS.’’. 

11 SEC. 802. TECHNICAL CORRECTIONS TO THE FEDERAL 

12 CREDIT UNION ACT. 

13 The Federal Credit Union Act (12 U.S.C. 1751 et 

14 seq.) is amended as follows: 

15 (1) In section 101(3), strike ‘‘and’’ after the 

16 semicolon. 

17 (2) In section 101(5), strike the terms ‘‘account 

18 account’’ and ‘‘account accounts’’ each place any 

19 such term appears and insert ‘‘account’’. 

20 (3) In section 107(a)(5)(E) (as so designated 

21 by section 303 of this Act), strike the period at the 

22 end and insert a semicolon. 

23 (4) In paragraphs (6) and (7) of section 107(a) 

24 (as so designated by section 303 of this Act), strike 

25 the period at the end and insert a semicolon. 
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1 (5) In section 107(a)(7)(D) (as so designated 

2 by section 303 of this Act), strike ‘‘the Federal Sav3 ings and Loan Insurance Corporation or’’. 

4 (6) In section 107(a)(7)(E) (as so designated 

5 by section 303 of this Act), strike ‘‘the Federal 

6 Home Loan Bank Board,’’ and insert ‘‘the Federal 

7 Housing Finance Board,’’. 

8 (7) In section 107(a)(9) (as so designated by 

9 section 303 of this Act), strike ‘‘subchapter III’’ and 

10 insert ‘‘title III’’. 

11 (8) In section 107(a)(13) (as so designated by 

12 section 303 of this Act), strike the ‘‘and’’ after the 

13 semicolon at the end. 

14 (9) In section 109(c)(2)(A)(i), strike ‘‘(12 

15 U.S.C. 4703(16))’’. 

16 (10) In section 120(h), strike ‘‘under the Act 

17 approved July 30, 1947 (6 U.S.C., secs. 6–13),’’ and 

18 insert ‘‘chapter 93 of title 31, United States Code,’’. 

19 (11) In section 201(b)(5), strike ‘‘section 116 

20 of’’. 

21 (12) In section 202(h)(3), strike ‘‘section 

22 207(c)(1)’’ and insert ‘‘section 207(k)(1)’’. 

23 (13) In section 204(b), strike ‘‘such others pow24 ers’’ and insert ‘‘such other powers’’. 
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1 (14) In section 206(e)(3)(D), strike ‘‘and’’ after 

2 the semicolon at the end. 

3 (15) In section 206(f)(1), strike ‘‘subsection 

4 (e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. 

5 (16) In section 206(g)(7)(D), strike ‘‘and sub6 section (1)’’. 

7 (17) In section 206(t)(2)(B), insert ‘‘regula8 tions’’ after ‘‘as defined in’’. 

9 (18) In section 206(t)(2)(C), strike ‘‘material 

10 affect’’ and insert ‘‘material effect’’. 

11 (19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ 

12 after the semicolon at the end. 

13 (20) In section 206A(a)(2)(A), strike ‘‘regulator 

14 agency’’ and insert ‘‘regulatory agency’’. 

15 (21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ 

16 after the semicolon at the end. 

17 (22) In section 207(c)(8)(D)(ii)(I), insert a 

18 closing parenthesis after ‘‘Act of 1934’’. 

19 (23) In the heading for subparagraph (A) of 

20 section 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. 

21 (24) In section 207(f)(3)(A), strike ‘‘category 

22 or claimants’’ and insert ‘‘category of claimants’’. 

23 (25) In section 209(a)(8), strike the period at 

24 the end and insert a semicolon. 
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1 (26) In section 216(n), insert ‘‘any action’’ be2 fore ‘‘that is required’’. 

3 (27) In section 304(b)(3), strike ‘‘the affairs or 

4 such credit union’’ and insert ‘‘the affairs of such 

5 credit union’’. 

6 (28) In section 310, strike ‘‘section 102(e)’’ and 

7 insert ‘‘section 102(d)’’. 

8 SEC. 803. OTHER TECHNICAL CORRECTIONS. 

9 (a) Section 1306 of title 18, United States Code, is 

10 amended by striking ‘‘5136A’’ and inserting ‘‘5136B’’. 

11 (b) Section 5239 of the Revised Statutes of the 

12 United States (12 U.S.C. 93) is amended by redesignating 

13 the second of the 2 subsections designated as subsection 

14 (d) (as added by section 331(b)(3) of the Riegle Commu15 nity Development and Regulatory Improvement Act of 

16 1994) as subsection (e). 

17 SEC. 804. REPEAL OF OBSOLETE PROVISIONS OF THE BANK 

18 HOLDING COMPANY ACT OF 1956. 

19 (a) IN GENERAL.—Section 2 of the Bank Holding 

20 Company Act of 1956 (12 U.S.C. 1841) is amended—

21 (1) in subsection (c)(2), by striking subpara22 graphs (I) and (J); and 

23 (2) by striking subsection (m) and inserting the 

24 following new subsection: 

25 ‘‘(m) [Repealed]’’. 
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1 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

2 Paragraphs (1) and (2) of section 4(h) of the Bank Hold3 ing Company Act of 1956 (12 U.S.C. 1843(h)) are each 

4 amended by striking ‘‘(G), (H), (I), or (J) of section 

5 2(c)(2)’’ and inserting ‘‘(G), or (H) of section 2(c)(2)’’.

Æ