II 

115TH CONGRESS 

1ST SESSION S. 567 

To amend the Home Owners’ Loan Act to allow Federal savings associations 

to elect to operate as national banks, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 8, 2017 

Ms. HEITKAMP introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Home Owners’ Loan Act to allow Federal 

savings associations to elect to operate as national banks, 

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. 

4 This Act may be cited as the ‘‘Federal Savings Asso5 ciation Charter Flexibility Act of 2017’’. 

6 SEC. 2. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO 

7 OPERATE AS A COVERED SAVINGS ASSOCIA8 TION. 

9 The Home Owners’ Loan Act (12 U.S.C. 1461 et 

10 seq.) is amended by inserting after section 5 the following: 


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1 ‘‘SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS 

2 ASSOCIATION. 

3 ‘‘(a) DEFINITION.—In this section, the term ‘covered 

4 savings association’ means a Federal savings association 

5 that makes an election approved under subsection (b). 

6 ‘‘(b) ELECTION.— 

7 ‘‘(1) IN GENERAL.—Upon issuance of the rules 

8 described in subsection (f), a Federal savings asso9 ciation may elect to operate as a covered savings as10 sociation by submitting a notice to the Comptroller 

11 of such election. 

12 ‘‘(2) APPROVAL.—A Federal savings association 

13 shall be deemed to be approved to operate as a cov14 ered savings association on the date that is 60 days 

15 after the date on which the Comptroller receives the 

16 notice under paragraph (1), unless the Comptroller 

17 notifies the Federal savings association otherwise. 

18 ‘‘(c) RIGHTS AND DUTIES.—Notwithstanding any 

19 other provision of law and except as otherwise provided 

20 in this section, a covered savings association shall— 

21 ‘‘(1) have the same rights and privileges as a 

22 national bank that has its main office situated in the 

23 same location as the home office of the covered sav24 ings association; and 


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1 ‘‘(2) be subject to the same duties, restrictions, 

2 penalties, liabilities, conditions, and limitations that 

3 would apply to such a national bank. 

4 ‘‘(d) TREATMENT OF COVERED SAVINGS ASSOCIA5 TIONS.—A covered savings association shall be treated as 

6 a Federal savings association for the purposes— 

7 ‘‘(1) of governance of the covered savings asso8 ciation, including incorporation, bylaws, boards of 

9 directors, shareholders, and distribution of divi10 dends; 

11 ‘‘(2) of consolidation, merger, dissolution, con12 version (including conversion to a stock bank or to 

13 another charter), conservatorship, and receivership; 

14 and 

15 ‘‘(3) determined by regulation of the Comp16 troller. 

17 ‘‘(e) EXISTING BRANCHES.—A covered savings asso18 ciation may continue to operate any branch or agency the 

19 covered savings association operated on the date on which 

20 an election under subsection (b) is approved. 

21 ‘‘(f) RULEMAKING.—The Comptroller shall issue 

22 rules to carry out this section— 

23 ‘‘(1) that establish streamlined standards and 

24 procedures that clearly identify required documentaVerDate Sep 11 2014 01:34 Mar 14, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S567.IS S567

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1 tion or timelines for an election under subsection 

2 (b); 

3 ‘‘(2) that require a Federal savings association 

4 that makes an election under subsection (b) to iden5 tify specific assets and subsidiaries— 

6 ‘‘(A) that do not conform to the require7 ments for assets and subsidiaries of a national 

8 bank; and 

9 ‘‘(B) that are held by the Federal savings 

10 association on the date on which the Federal 

11 savings association submits a notice of such 

12 election; 

13 ‘‘(3) that establish— 

14 ‘‘(A) a transition process for bringing such 

15 assets and subsidiaries into conformance with 

16 the requirements for a national bank; and 

17 ‘‘(B) procedures for allowing the Federal 

18 savings association to provide a justification for 

19 grandfathering such assets and subsidiaries 

20 after electing to operate as a covered savings 

21 association; 

22 ‘‘(4) that establish standards and procedures to 

23 allow a covered savings association to terminate an 

24 election under subsection (b) after an appropriate 

25 period of time or to make a subsequent election; 


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1 ‘‘(5) that clarify requirements for the treatment 

2 of covered savings associations, including the provi3 sions of law that apply to covered savings associa4 tions; and 

5 ‘‘(6) as the Comptroller deems necessary and in 

6 the interests of safety and soundness.’’. 

Æ 


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