II 

Calendar No. 437 

109TH CONGRESS 

2D SESSION S. 2856 

[Report No. 109–256] 

To provide regulatory relief and improve productivity for insured depository 

institutions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 18, 2006 

Mr. CRAPO, from the Committee on Banking, Housing, and Urban Affairs, 

reported the following original bill; which was read twice and placed on 

the calendar 

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 2006’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—BROKER RELIEF 

Sec. 101. Rulemaking required for revised definition of broker in the Securities 

Exchange Act of 1934. 

TITLE II—MONETARY POLICY PROVISIONS 

Sec. 201. Authorization for the Federal reserve to pay interest on reserves. 

Sec. 202. Increased flexibility for the Federal Reserve Board to establish reserve requirements. 

TITLE III—NATIONAL BANK PROVISIONS 

Sec. 301. Voting in shareholder elections. 

Sec. 302. Simplifying dividend calculations for national banks. 

Sec. 303. Repeal of obsolete limitation on removal authority of the Comptroller 

of the Currency. 

Sec. 304. Repeal of obsolete provision in the Revised Statutes. 

TITLE IV—SAVINGS ASSOCIATION PROVISIONS 

Sec. 401. Parity for savings associations under the Securities Exchange Act of 

1934 and the Investment Advisers Act of 1940. 

Sec. 402. Repeal of overlapping rules governing purchased mortgage servicing 

rights. 

Sec. 403. Clarifying citizenship of Federal savings associations for Federal 

court jurisdiction. 

Sec. 404. Repeal of limitation on loans to one borrower. 

TITLE V—CREDIT UNION PROVISIONS 

Sec. 501. Leases of land on Federal facilities for credit unions. 

Sec. 502. Increase in general 12-year limitation of term of Federal credit union 

loans to 15 years. 

Sec. 503. Check cashing and money transfer services offered within the field of 

membership. 

Sec. 504. Clarification of definition of net worth under certain circumstances 

for purposes of prompt corrective action. 

TITLE VI—DEPOSITORY INSTITUTION PROVISIONS 

Sec. 601. Reporting requirements relating to insider lending. 

Sec. 602. Investments by insured savings associations in bank service companies authorized. 

Sec. 603. Authorization for member bank to use pass-through reserve accounts. 

Sec. 604. Streamlining reports of condition. 

Sec. 605. Expansion of eligibility for 18-month examination schedule for community banks. 

Sec. 606. Streamlining depository institution merger application requirements. 

Sec. 607. Nonwaiver of privileges. 

Sec. 608. Clarification of application requirements for optional conversion for 

Federal savings associations. 

Sec. 609. Exemption from disclosure of privacy policy for accounting firms. 

Sec. 610. Inflation adjustment for the small depository institution exception 

under the Depository Institution Management Interlocks Act. 

Sec. 611. Modification to cross marketing restrictions. 

TITLE VII—BANKING AGENCY PROVISIONS 


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Sec. 701. Statute of limitations for judicial review of appointment of a receiver 

for depository institutions. 

Sec. 702. Enhancing the safety and soundness of insured depository institutions. 

Sec. 703. Cross guarantee authority. 

Sec. 704. Golden parachute authority and nonbank holding companies. 

Sec. 705. Amendments relating to change in bank control. 

Sec. 706. Amendment to provide the Federal Reserve Board with discretion 

concerning the imputation of control of shares of a company 

by trustees. 

Sec. 707. Interagency data sharing. 

Sec. 708. Clarification of extent of suspension, removal, and prohibition authority of Federal banking agencies in cases of certain crimes by 

institution-affiliated parties. 

Sec. 709. Protection of confidential information received by Federal banking 

regulators from foreign banking supervisors. 

Sec. 710. Prohibition on participation by convicted individuals. 

Sec. 711. Coordination of State examination authority. 

Sec. 712. Deputy Director; succession authority for Director of the Office of 

Thrift Supervision. 

Sec. 713. Office of Thrift Supervision representation on Basel Committee on 

Banking Supervision. 

Sec. 714. Federal Financial Institutions Examination Council. 

Sec. 715. Technical amendments relating to insured institutions. 

Sec. 716. Clarification of enforcement authority. 

Sec. 717. Federal banking agency authority to enforce deposit insurance conditions. 

Sec. 718. Receiver or conservator consent requirement. 

Sec. 719. Acquisition of FICO scores. 

Sec. 720. Elimination of criminal indictments against receiverships. 

Sec. 721. Resolution of deposit insurance disputes. 

Sec. 722. Recordkeeping. 

Sec. 723. Preservation of records. 

Sec. 724. Technical amendments to information sharing provision in the Federal Deposit Insurance Act. 

Sec. 725. Technical and conforming amendments relating to banks operating 

under the Code of Law for the District of Columbia. 

Sec. 726. Technical corrections to the Federal Credit Union Act. 

Sec. 727. Repeal of obsolete provisions of the Bank Holding Company Act of 

1956. 

Sec. 728. Development of model privacy forms. 

TITLE VIII—FAIR DEBT COLLECTION PRACTICES ACT 

AMENDMENTS 

Sec. 801. Exception for certain bad check enforcement programs. 

TITLE IX—CASH MANAGEMENT MODERNIZATION 

Sec. 901. Collateral modernization. 

TITLE X—STUDIES AND REPORTS 

Sec. 1001. Study and report by the Comptroller General on the currency transaction report filing system. 

Sec. 1002. Study and report on institution diversity and consolidation. 


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1 TITLE I—BROKER RELIEF 

2 SEC. 101. RULEMAKING REQUIRED FOR REVISED DEFINI3 TION OF BROKER IN THE SECURITIES EX4 CHANGE ACT OF 1934. 

5 (a) FINAL RULES REQUIRED.— 

6 (1) AMENDMENT TO SECURITIES EXCHANGE

7 ACT.—Section 3(a)(4) of the Securities Exchange 

8 Act of 1934 (15 U.S.C. 78c(a)(4)) is amended by 

9 adding at the end the following: 

10 ‘‘(F) RULEMAKING REQUIRED.—The Com11 mission shall, by rule, implement the exceptions 

12 in subparagraph (B).’’. 

13 (2) TIMING.—Not later than 180 days after the 

14 date of enactment of this Act, the Securities and Ex15 change Commission (in this section referred to as 

16 the ‘‘Commission’’) shall issue proposed rules to de17 fine the term ‘‘broker’’ in accordance with section 

18 3(a)(4) of the Securities Exchange Act of 1934, as 

19 amended by this subsection. 

20 (3) RULEMAKING SUPERSEDES PREVIOUS

21 RULEMAKING.—A final rule issued in accordance 

22 with this section shall supersede any other proposed 

23 or final rule issued by the Commission with regard 

24 to the exceptions to the definition of a broker under 

25 section 3(a)(4)(B) of the Securities Exchange Act of 


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1 1934, on or after the date of enactment of section 

2 201 of the Gramm-Leach-Bliley Act. No such other 

3 rule, whether or not issued in final form, shall have 

4 any force or effect on or after that date of enact5 ment. 

6 (b) CONSULTATION.—Prior to issuing the final rule 

7 required by this section, the Commission shall consult with 

8 and seek the concurrence of the Federal banking agencies 

9 concerning the content of such rulemaking in imple10 menting section 3(a)(4)(B) of the Securities Exchange Act 

11 of 1934, as amended by this section and section 201 of 

12 the Gramm-Leach-Bliley Act. 

13 (c) AGENCY OBJECTIONS TO COMMISSION RULE.— 

14 (1) FILING OF PETITION FOR REVIEW.— 

15 (A) IN GENERAL.—Any Federal banking 

16 agency may obtain review of any final rule 

17 issued under this section in the United States 

18 Court of Appeals for the District of Columbia 

19 Circuit by filing in such court, not later than 60 

20 days after the date of publication of the final 

21 rule, a written petition requesting that the rule 

22 be set aside. 

23 (B) EXPEDITED PROCESS.—Any pro24 ceeding to challenge such a rule commenced 


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1 under subparagraph (A) shall be expedited by 

2 the Court of Appeals. 

3 (2) TRANSMITTAL OF PETITION AND

4 RECORD.— 

5 (A) SUBMISSION TO CLERK.—A copy of a 

6 petition described in paragraph (1) shall be 

7 transmitted as soon as possible by the Clerk of 

8 the Court to an officer or employee of the Com9 mission designated for that purpose. 

10 (B) FILING OF PETITION.—Upon receipt 

11 of a petition under subparagraph (A), the Com12 mission shall file with the court the rule under 

13 review and any documents referred to therein, 

14 and any other relevant materials prescribed by 

15 the court. 

16 (3) EXCLUSIVE JURISDICTION.—On the date of 

17 the filing of a petition under paragraph (1), the 

18 court has jurisdiction, which becomes exclusive on 

19 the filing of the materials set forth in paragraph (2), 

20 to affirm and enforce or to set aside the rule at 

21 issue. 

22 (4) STANDARD OF REVIEW.—The court shall 

23 determine to affirm and enforce or set aside a rule 

24 of the Commission under this subsection, based on 

25 the determination of the court as to whether the rule 


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1 is consistent with the purposes and language of sec2 tion 3(a)(4)(B) of the Securities Exchange Act of 

3 1934, as amended by section 201 of the Gramm4 Leach-Bliley Act, and appropriate in light of the his5 tory, purpose, and extent of the rule under the Fed6 eral securities laws and the Federal banking laws, 

7 giving deference neither to the views of the Commis8 sion nor of the Federal banking agencies. 

9 (5) JUDICIAL STAY.—The filing of a petition by 

10 a Federal banking agency under paragraph (1) shall 

11 operate as a judicial stay, until the date on which 

12 the determination of the court is final (including any 

13 appeal of such determination). 

14 (d) DEFINITION.—For purposes of this section, the 

15 term ‘‘Federal banking agencies’’ means the Board of 

16 Governors of the Federal Reserve System, the Office of 

17 the Comptroller of the Currency, the Office of Thrift Su18 pervision, and the Federal Deposit Insurance Corporation. 

19 TITLE II—MONETARY POLICY 

20 PROVISIONS 

21 SEC. 201. AUTHORIZATION FOR THE FEDERAL RESERVE TO 

22 PAY INTEREST ON RESERVES. 

23 (a) IN GENERAL.—Section 19(b) of the Federal Re24 serve Act (12 U.S.C. 461(b)) is amended by adding at 

25 the end the following: 


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1 ‘‘(12) EARNINGS ON BALANCES.— 

2 ‘‘(A) IN GENERAL.—Balances maintained 

3 at a Federal Reserve bank by or on behalf of 

4 a depository institution may receive earnings to 

5 be paid by the Federal Reserve bank at least 

6 once each calendar quarter, at a rate or rates 

7 not to exceed the general level of short-term in8 terest rates. 

9 ‘‘(B) REGULATIONS RELATING TO PAY10 MENTS AND DISTRIBUTIONS.—The Board may 

11 prescribe regulations concerning— 

12 ‘‘(i) the payment of earnings in ac13 cordance with this paragraph; 

14 ‘‘(ii) the distribution of such earnings 

15 to the depository institutions which main16 tain balances at such banks, or on whose 

17 behalf such balances are maintained; and 

18 ‘‘(iii) the responsibilities of depository 

19 institutions, Federal Home Loan Banks, 

20 and the National Credit Union Administra21 tion Central Liquidity Facility with respect 

22 to the crediting and distribution of earn23 ings attributable to balances maintained, 

24 in accordance with subsection (c)(1)(A), in 


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1 a Federal Reserve bank by any such entity 

2 on behalf of depository institutions. 

3 ‘‘(C) DEPOSITORY INSTITUTIONS DE4 FINED.—For purposes of this paragraph, the 

5 term ‘depository institution’, in addition to the 

6 institutions described in paragraph (1)(A), in7 cludes any trust company, corporation orga8 nized under section 25A or having an agree9 ment with the Board under section 25, or any 

10 branch or agency of a foreign bank (as defined 

11 in section 1(b) of the International Banking Act 

12 of 1978).’’. 

13 (b) CONFORMING AMENDMENT.—Section 19 of the 

14 Federal Reserve Act (12 U.S.C. 461) is amended– 

15 (1) in subsection (b)(4)— 

16 (A) by striking subparagraph (C); and 

17 (B) by redesignating subparagraphs (D) 

18 and (E) as subparagraphs (C) and (D), respec19 tively; and 

20 (2) in subsection (c)(1)(A), by striking ‘‘sub21 section (b)(4)(C)’’ and inserting ‘‘subsection (b)’’. 


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1 SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RE2 SERVE BOARD TO ESTABLISH RESERVE RE3 QUIREMENTS. 

4 Section 19(b)(2)(A) of the Federal Reserve Act (12 

5 U.S.C. 461(b)(2)(A)) is amended— 

6 (1) in clause (i), by striking ‘‘the ratio of 3 per 

7 centum’’ and inserting ‘‘a ratio of not greater than 

8 3 percent (and which may be zero)’’; and 

9 (2) in clause (ii), by striking ‘‘and not less than 

10 8 per centum,’’ and inserting ‘‘(and which may be 

11 zero),’’. 

12 TITLE III—NATIONAL BANK 

13 PROVISIONS 

14 SEC. 301. VOTING IN SHAREHOLDER ELECTIONS. 

15 Section 5144 of the Revised Statutes of the United 

16 States (12 U.S.C. 61) is amended— 

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

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

19 the national bank, to cumulate’’; and 

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

21 shall equal’’. 

22 SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NA23 TIONAL BANKS. 

24 (a) IN GENERAL.—Section 5199 of the Revised Stat25 utes of the United States (12 U.S.C. 60) is amended to 

26 read as follows: 


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1 ‘‘SEC. 5199. NATIONAL BANK DIVIDENDS. 

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

4 so much of the undivided profits of the bank as the direc5 tors judge to be expedient. 

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

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

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

10 year and the retained net income of the bank for the pre11 ceding 2 years, minus the sum of any transfers required 

12 by the Comptroller of the Currency and any transfers re13 quired to be made to a fund for the retirement of any 

14 preferred stock, unless the Comptroller of the Currency 

15 approves the declaration and payment of dividends in ex16 cess of such amount.’’. 

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

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

19 the United States is amended by striking the item relating 

20 to section 5199 and inserting the following: 

‘‘5199. National bank dividends.’’. 


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1 SEC. 303. REPEAL OF OBSOLETE LIMITATION ON REMOVAL 

2 AUTHORITY OF THE COMPTROLLER OF THE 

3 CURRENCY. 

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

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

6 sentence. 

7 SEC. 304. REPEAL OF OBSOLETE PROVISION IN THE RE8 VISED STATUTES. 

9 Section 5143 of the Revised Statutes of the United 

10 States (12 U.S.C. 59) is amended to read as follows: 

11 ‘‘SEC. 5143. REDUCTION OF CAPITAL. 

12 ‘‘(a) IN GENERAL.—Subject to the approval of the 

13 Comptroller of the Currency, a national banking associa14 tion may, by a vote of shareholders owning, in the aggre15 gate, two-thirds of its capital stock, reduce its capital. 

16 ‘‘(b) SHAREHOLDER DISTRIBUTIONS AUTHOR17 IZED.—As part of its capital reduction plan approved in 

18 accordance with subsection (a), and with the affirmative 

19 vote of shareholders owning at least two thirds of the 

20 shares of each class of its stock outstanding (each voting 

21 as a class), a national banking association may distribute 

22 cash or other assets to its shareholders.’’. 


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1 TITLE IV—SAVINGS 

2 ASSOCIATION PROVISIONS 

3 SEC. 401. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE 

4 SECURITIES EXCHANGE ACT OF 1934 AND 

5 THE INVESTMENT ADVISERS ACT OF 1940. 

6 (a) SECURITIES EXCHANGE ACT OF 1934.— 

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

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

9 78c(a)(6)) is amended— 

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

11 a Federal savings association, as defined in sec12 tion 2(5) of the Home Owners’ Loan Act’’ after 

13 ‘‘a banking institution organized under the laws 

14 of the United States’’; and 

15 (B) in subparagraph (C)— 

16 (i) by inserting ‘‘or savings associa17 tion, as defined in section 2(4) of the 

18 Home Owners’ Loan Act’’ after ‘‘banking 

19 institution’’; and 

20 (ii) by inserting ‘‘or savings associa21 tions’’ after ‘‘having supervision over 

22 banks’’. 

23 (2) INCLUSION OF OTS UNDER THE DEFINITION

24 OF APPROPRIATE REGULATORY AGENCY FOR CER25 TAIN PURPOSES.—Section 3(a)(34) of the Securities 


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1 Exchange Act of 1934 (15 U.S.C. 78c(a)(34)) is 

2 amended— 

3 (A) in subparagraph (A)— 

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

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

6 (ii) in clause (iii), by striking ‘‘and’’ 

7 at the end; 

8 (iii) by redesignating clause (iv) as 

9 clause (v); and 

10 (iv) by inserting after clause (iii) the 

11 following: 

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, a subsidiary or a department 

19 or division of any such savings association, 

20 or a savings and loan holding company; 

21 and’’; 

22 (B) in subparagraph (B)— 

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

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


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1 (ii) in clause (iii), by striking ‘‘and’’ 

2 at the end; 

3 (iii) by redesignating clause (iv) as 

4 clause (v); and 

5 (iv) by inserting after clause (iii) the 

6 following: 

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

8 Thrift Supervision, in the case of a savings 

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

10 the Federal Deposit Insurance Act (12 

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

12 insured by the Federal Deposit Insurance 

13 Corporation, or a subsidiary of any such 

14 savings association, or a savings and loan 

15 holding company; and’’; 

16 (C) in subparagraph (C)— 

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

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

19 (ii) in clause (iii), by striking ‘‘and’’ 

20 at the end; 

21 (iii) by redesignating clause (iv) as 

22 clause (v); and 

23 (iv) by inserting after clause (iii) the 

24 following: 


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

2 Thrift Supervision, in the case of a savings 

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

4 the Federal Deposit Insurance Act (12 

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

6 insured by the Federal Deposit Insurance 

7 Corporation, a savings and loan holding 

8 company, or a subsidiary of a savings and 

9 loan holding company when the appro10 priate regulatory agency for such clearing 

11 agency is not the Commission; and’’; 

12 (D) in subparagraph (D)— 

13 (i) in clause (ii), by striking ‘‘and’’ at 

14 the end; 

15 (ii) by redesignating clause (iii) as 

16 clause (iv); and 

17 (iii) by inserting after clause (ii) the 

18 following: 

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

20 Thrift Supervision, in the case of a savings 

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

22 the Federal Deposit Insurance Act (12 

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

24 insured by the Federal Deposit Insurance 

25 Corporation; and’’; 


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1 (E) in subparagraph (F)— 

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

3 and (iv) as clauses (iii), (iv), and (v), re4 spectively; and 

5 (ii) by inserting after clause (i) the 

6 following: 

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

8 Thrift Supervision, in the case of a savings 

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

10 the Federal Deposit Insurance Act (12 

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

12 insured by the Federal Deposit Insurance 

13 Corporation; and’’; 

14 (F) by moving subparagraph (H) and in15 serting such subparagraph immediately after 

16 subparagraph (G); and 

17 (G) by adding at the end of the undesig18 nated matter at the end the following: ‘‘As used 

19 in this paragraph, the term ‘savings and loan 

20 holding company’ has the same meaning as in 

21 section 10(a) of the Home Owners’ Loan Act 

22 (12 U.S.C. 1467a(a)).’’. 

23 (3) CONFORMING EXEMPTION TO REPORTING

24 REQUIREMENT.—Section 23(b)(1) of the Securities 

25 Exchange Act of 1934 (15 U.S.C. 78w(b)(1)) is 


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1 amended by inserting ‘‘other than the Office of 

2 Thrift Supervision,’’ before ‘‘shall each’’. 

3 (b) INVESTMENT ADVISERS ACT OF 1940.— 

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

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

6 80b–2(a)(2)) is amended— 

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

8 a Federal savings association, as defined in sec9 tion 2(5) of the Home Owners’ Loan Act’’ after 

10 ‘‘a banking institution organized under the laws 

11 of the United States’’; and 

12 (B) in subparagraph (C)— 

13 (i) by inserting ‘‘, savings association, 

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

15 Owners’ Loan Act,’’ after ‘‘banking insti16 tution’’; and 

17 (ii) by inserting ‘‘or savings associa18 tions’’ after ‘‘having supervision over 

19 banks’’. 

20 (2) CONFORMING AMENDMENTS.—Section 

21 210A of the Investment Advisers Act of 1940 (15 

22 U.S.C. 80b–10a) is amended in each of subsections 

23 (a)(1)(A)(i), (a)(1)(B), (a)(2), and (b), by striking 

24 ‘‘bank holding company’’ each place that term apVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 pears and inserting ‘‘bank holding company or sav2 ings and loan holding company’’. 

3 (c) CONFORMING AMENDMENT TO THE INVESTMENT

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

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

6 by inserting after ‘‘1956)’’ the following: ‘‘or any one sav7 ings and loan holding company, together with its affiliates 

8 and subsidiaries (as such terms are defined in section 10 

9 of the Home Owners’ Loan Act),’’. 

10 SEC. 402. REPEAL OF OVERLAPPING RULES GOVERNING 

11 PURCHASED MORTGAGE SERVICING RIGHTS. 

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

13 U.S.C. 1464(t)) is amended— 

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

15 following: 

16 ‘‘(4) [Repealed].’’; and 

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

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

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

20 SEC. 403. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 

21 ASSOCIATIONS FOR FEDERAL COURT JURIS22 DICTION. 

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

24 1464) is amended by adding at the end the following: 


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

2 whether a Federal court has diversity jurisdiction over a 

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

4 Federal savings association shall be considered to be a cit5 izen only of the State in which such savings association 

6 has its home office.’’. 

7 SEC. 404. REPEAL OF LIMITATION ON LOANS TO ONE BOR8 ROWER. 

9 Section 5(u)(2)(A) of the Home Owners’ Loan Act 

10 (12 U.S.C. 1464(u)(2)(A)) is amended— 

11 (1) in clause (i)— 

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

13 ‘‘For any’’; and 

14 (B) by striking ‘‘; or’’ and inserting a pe15 riod; and 

16 (2) in clause (ii)— 

17 (A) by striking ‘‘to develop domestic’’ and 

18 inserting ‘‘To develop domestic’’; 

19 (B) by striking subclause (I); and 

20 (C) by redesignating subclauses (II) 

21 through (V) as subclauses (I) through (IV), re22 spectively. 


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1 TITLE V—CREDIT UNION 

2 PROVISIONS 

3 SEC. 501. LEASES OF LAND ON FEDERAL FACILITIES FOR 

4 CREDIT UNIONS. 

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

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

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

8 union’’ and inserting ‘‘Notwithstanding any other 

9 provision of law, upon application by any credit 

10 union’’; 

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

12 of, and under the exclusive or concurrent jurisdiction 

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

14 the United States charged with the allotment of 

15 space’’; 

16 (3) by inserting ‘‘lease land or’’ after ‘‘such of17 ficer or agency may in his or its discretion’’; and 

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

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

20 allotment of space’’. 

21 (b) CLERICAL AMENDMENT.—The section heading 

22 for section 124 of the Federal Credit Union Act (12 

23 U.S.C. 1770) is amended by inserting ‘‘OR FEDERAL

24 LAND’’ after ‘‘BUILDINGS’’. 


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1 SEC. 502. INCREASE IN GENERAL 12-YEAR LIMITATION OF 

2 TERM OF FEDERAL CREDIT UNION LOANS TO 

3 15 YEARS. 

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

5 U.S.C. 1757(5)) is amended in the matter preceding sub6 paragraph (A), by striking ‘‘to make loans, the maturities 

7 of which shall not exceed twelve years’’ and inserting ‘‘to 

8 make loans, the maturities of which shall not exceed 15 

9 years,’’. 

10 SEC. 503. CHECK CASHING AND MONEY TRANSFER SERV11 ICES OFFERED WITHIN THE FIELD OF MEM12 BERSHIP. 

13 Section 107(12) of the Federal Credit Union Act (12 

14 U.S.C. 1757(12)) is amended to read as follows: 

15 ‘‘(12) in accordance with regulations prescribed 

16 by the Board— 

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

18 membership, negotiable checks (including trav19 elers checks), money orders, and other similar 

20 money transfer instruments (including inter21 national and domestic electronic fund trans22 fers); and 

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

24 receive international and domestic electronic 

25 fund transfers for persons in the field of mem26 bership for a fee;’’. 


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1 SEC. 504. CLARIFICATION OF DEFINITION OF NET WORTH 

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

4 Section 216(o)(2)(A) of the Federal Credit Union Act 

5 (12 U.S.C. 1790d(o)(2)(A)) is amended— 

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

7 balance’’; and 

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

9 that were previously retained earnings of any other 

10 credit union with which the credit union has com11 bined’’ before the semicolon at the end. 

12 TITLE VI—DEPOSITORY 

13 INSTITUTION PROVISIONS 

14 SEC. 601. REPORTING REQUIREMENTS RELATING TO IN15 SIDER LENDING. 

16 (a) REPORTING REQUIREMENTS REGARDING LOANS

17 TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section 

18 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is 

19 amended— 

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

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

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

23 (b) REPORTING REQUIREMENTS REGARDING LOANS

24 FROM CORRESPONDENT BANKS TO EXECUTIVE OFFI25 CERS AND SHAREHOLDERS OF INSURED BANKS.—Section 


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1 106(b)(2) of the Bank Holding Company Act Amend2 ments of 1970 (12 U.S.C. 1972(2)) is amended— 

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

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

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

6 SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIA7 TIONS IN BANK SERVICE COMPANIES AU8 THORIZED. 

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

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

11 amended by striking ‘‘insured bank’’ each place that term 

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

13 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

14 (1) BANK SERVICE COMPANY ACT DEFINI15 TIONS.—Section 1(b) of the Bank Service Company 

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

17 (A) in paragraph (4)— 

18 (i) by inserting ‘‘, except when such 

19 term appears in connection with the term 

20 ‘insured depository institution’,’’ after 

21 ‘‘means’’; and 

22 (ii) by striking ‘‘Federal Home Loan 

23 Bank Board’’ and inserting ‘‘Director of 

24 the Office of Thrift Supervision’’; 


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1 (B) by striking paragraph (5) and insert2 ing the following: 

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

4 term ‘insured depository institution’ has the same 

5 meaning as in section 3(c) of the Federal Deposit 

6 Insurance Act;’’; 

7 (C) by striking ‘‘and’’ at the end of para8 graph (7); 

9 (D) by striking the period at the end of 

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

11 (E) by adding at the end the following: 

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

13 ‘Federal depository institution’, ‘State savings asso14 ciation’ and ‘Federal savings association’ have the 

15 same meanings as in section 3 of the Federal De16 posit Insurance Act.’’; 

17 (F) in paragraph (2), in subparagraphs 

18 (A)(ii) and (B)(ii), by striking ‘‘insured banks’’ 

19 each place that term appears and inserting ‘‘in20 sured depository institutions’’; and 

21 (G) in paragraph (8)— 

22 (i) by striking ‘‘insured bank’’ and in23 serting ‘‘insured depository institution’’; 


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1 (ii) by striking ‘‘insured banks’’ each 

2 place that term appears and inserting ‘‘in3 sured depository institutions’’; and 

4 (iii) by striking ‘‘the bank’s’’ and in5 serting ‘‘the depository institution’s’’. 

6 (2) AMOUNT OF INVESTMENT.—Section 2 of 

7 the Bank Service Company Act (12 U.S.C. 1862) is 

8 amended by inserting ‘‘or savings associations, other 

9 than the limitation on the amount of investment by 

10 a Federal savings association contained in section 

11 5(c)(4)(B) of the Home Owners’ Loan Act’’ after 

12 ‘‘relating to banks’’. 

13 (3) LOCATION OF SERVICES.—Section 4 of the 

14 Bank Service Company Act (12 U.S.C. 1864) is 

15 amended— 

16 (A) in subsection (b), by inserting ‘‘as per17 missible under subsection (c), (d), or (e) or’’ 

18 after ‘‘Except’’; 

19 (B) in subsection (c), by inserting ‘‘or 

20 State savings association’’ after ‘‘State bank’’ 

21 each place that term appears; 

22 (C) in subsection (d), by inserting ‘‘or 

23 Federal savings association’’ after ‘‘national 

24 bank’’ each place that term appears; 


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1 (D) by striking subsection (e) and insert2 ing the following: 

3 ‘‘(e) PERFORMANCE WHERE STATE BANK AND NA4 TIONAL BANK ARE SHAREHOLDERS OR MEMBERS.—A 

5 bank service company may perform— 

6 ‘‘(1) only those services that each depository in7 stitution shareholder or member is otherwise author8 ized to perform under any applicable Federal or 

9 State law; and 

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

11 in which each such shareholder or member is author12 ized to perform such services.’’; and 

13 (E) in subsection (f), by inserting ‘‘or sav14 ings associations’’ after ‘‘location of banks’’. 

15 (4) PRIOR APPROVAL OF INVESTMENTS.—Sec16 tion 5 of the Bank Service Company Act (12 U.S.C. 

17 1865) is amended— 

18 (A) in subsection (a)— 

19 (i) by striking ‘‘insured bank’’ and in20 serting ‘‘insured depository institution’’; 

21 and 

22 (ii) by striking ‘‘bank’s’’; and 

23 (iii) by inserting before the period 

24 ‘‘for the insured depository institution’’; 

25 (B) in subsection (b)— 


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1 (i) by striking ‘‘insured bank’’ and in2 serting ‘‘insured depository institution’’; 

3 (ii) by inserting ‘‘authorized only’’ 

4 after ‘‘performs any service’’; and 

5 (iii) by inserting ‘‘authorized only’’ 

6 after ‘‘perform any activity’’; and 

7 (C) in subsection (c)— 

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

9 and inserting ‘‘any insured depository in10 stitution’’; and 

11 (ii) by striking ‘‘capability of the 

12 bank’’ and inserting ‘‘capability of the in13 sured depository institution’’. 

14 (5) REGULATION AND EXAMINATION.—Section 

15 7 of the Bank Service Company Act (12 U.S.C. 

16 1867) is amended— 

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

18 bank’’ and inserting ‘‘insured depository insti19 tution’’; and 

20 (B) in subsection (c)— 

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

22 that term appears and inserting ‘‘a deposi23 tory institution’’; and 


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

2 that term appears and inserting ‘‘the de3 pository institution’’. 

4 SEC. 603. AUTHORIZATION FOR MEMBER BANK TO USE 

5 PASS-THROUGH RESERVE ACCOUNTS. 

6 Section 19(c)(1)(B) of the Federal Reserve Act (12 

7 U.S.C. 461(c)(1)(B)) is amended by striking ‘‘which is not 

8 a member bank’’. 

9 SEC. 604. STREAMLINING REPORTS OF CONDITION. 

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

11 (12 U.S.C. 1817(a)) is amended by adding at the end the 

12 following: 

13 ‘‘(11) STREAMLINING REPORTS OF CONDI14 TION.— 

15 ‘‘(A) REVIEW OF INFORMATION AND

16 SCHEDULES.—Before the end of the 1-year pe17 riod beginning on the date of enactment of the 

18 Financial Services Regulatory Relief Act of 

19 2006 and before the end of each 5-year period 

20 thereafter, each Federal banking agency shall, 

21 in conjunction with the other relevant Federal 

22 banking agencies, review the information and 

23 schedules that are required to be filed by an in24 sured depository institution in a report of con25 dition required under paragraph (3). 


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1 ‘‘(B) REDUCTION OR ELIMINATION OF IN2 FORMATION FOUND TO BE UNNECESSARY.— 

3 After completing the review required by sub4 paragraph (A), a Federal banking agency, in 

5 conjunction with the other relevant Federal 

6 banking agencies, shall reduce or eliminate any 

7 requirement to file information or schedules 

8 under paragraph (3) (other than information or 

9 schedules that are otherwise required by law) if 

10 the agency determines that the continued collec11 tion of such information or schedules is no 

12 longer necessary or appropriate.’’. 

13 SEC. 605. EXPANSION OF ELIGIBILITY FOR 18-MONTH EX14 AMINATION SCHEDULE FOR COMMUNITY 

15 BANKS. 

16 Section 10(d)(4)(A) of the Federal Deposit Insurance 

17 Act (12 U.S.C. 1820(d)(4)(A)) is amended by striking 

18 ‘‘$250,000,000’’ and inserting ‘‘$500,000,000’’. 

19 SEC. 606. STREAMLINING DEPOSITORY INSTITUTION MERG20 ER APPLICATION REQUIREMENTS. 

21 (a) IN GENERAL.—Section 18(c)(4) of the Federal 

22 Deposit Insurance Act (12 U.S.C. 1828(c)(4)) is amended 

23 to read as follows: 

24 ‘‘(4) REPORTS ON COMPETITIVE FACTORS.— 


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1 ‘‘(A) REQUEST FOR REPORT.—In the in2 terests of uniform standards and subject to 

3 subparagraph (B), before acting on any applica4 tion for approval of a merger transaction, the 

5 responsible agency shall— 

6 ‘‘(i) request a report on the competi7 tive factors involved from the Attorney 

8 General of the United States; and 

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

10 the Corporation (when the Corporation is 

11 not the responsible agency). 

12 ‘‘(B) FURNISHING OF REPORT.—The re13 port requested under subparagraph (A) shall be 

14 furnished by the Attorney General to the re15 sponsible agency— 

16 ‘‘(i) not later than 30 calendar days 

17 after the date on which the Attorney Gen18 eral received the request; or 

19 ‘‘(ii) not later than 10 calendar days 

20 after such date, if the requesting agency 

21 advises the Attorney General that an emer22 gency exists requiring expeditious action. 

23 ‘‘(C) EXCEPTIONS.—A responsible agency 

24 may not be required to request a report under 

25 subparagraph (A) if— 


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1 ‘‘(i) the responsible agency finds that 

2 it must act immediately in order to prevent 

3 the probable failure of 1 of the insured de4 pository institutions involved in the merger 

5 transaction; or 

6 ‘‘(ii) the merger transaction involves 

7 solely an insured depository institution and 

8 1 or more of the affiliates of such deposi9 tory institution.’’. 

10 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

12 U.S.C. 1828(c)(6)) is amended— 

13 (1) in the second sentence, by striking ‘‘banks 

14 or savings associations involved and reports on the 

15 competitive factors have’’ and inserting ‘‘insured de16 pository institutions involved, or if the proposed 

17 merger transaction is solely between an insured de18 pository institution and 1 or more of its affiliates, 

19 and the report on the competitive factors has’’; and 

20 (2) by striking the penultimate sentence and in21 serting the following: ‘‘If the agency has advised the 

22 Attorney General under paragraph (4)(B)(ii) of the 

23 existence of an emergency requiring expeditious ac24 tion and has requested a report on the competitive 

25 factors within 10 days, the transaction may not be 


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1 consummated before the fifth calendar day after the 

2 date of approval by the agency.’’. 

3 SEC. 607. NONWAIVER OF PRIVILEGES. 

4 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

5 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) 

6 is amended by adding at the end the following: 

7 ‘‘(x) PRIVILEGES NOT AFFECTED BY DISCLOSURE

8 TO BANKING AGENCY OR SUPERVISOR.— 

9 ‘‘(1) IN GENERAL.—The submission by any per10 son of any information to any Federal banking agen11 cy, State bank supervisor, or foreign banking au12 thority for any purpose in the course of any super13 visory or regulatory process of such agency, super14 visor, or authority shall not be construed as waiving, 

15 destroying, or otherwise affecting any privilege such 

16 person may claim with respect to such information 

17 under Federal or State law as to any person or enti18 ty other than such agency, supervisor, or authority. 

19 ‘‘(2) RULE OF CONSTRUCTION.—No provision 

20 of paragraph (1) may be construed as implying or 

21 establishing that— 

22 ‘‘(A) any person waives any privilege appli23 cable to information that is submitted or trans24 ferred under any circumstance to which para25 graph (1) does not apply; or 


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1 ‘‘(B) any person would waive any privilege 

2 applicable to any information by submitting the 

3 information to any Federal banking agency, 

4 State bank supervisor, or foreign banking au5 thority, but for this subsection.’’ 

6 (b) INSURED CREDIT UNIONS.—Section 205 of the 

7 Federal Credit Union Act (12 U.S.C.1785) is amended by 

8 adding at the end the following: 

9 ‘‘(j) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO

10 BANKING AGENCY OR SUPERVISOR.— 

11 ‘‘(1) IN GENERAL.—The submission by any per12 son of any information to the Administration, any 

13 State credit union supervisor, or foreign banking au14 thority for any purpose in the course of any super15 visory or regulatory process of such Board, super16 visor, or authority shall not be construed as waiving, 

17 destroying, or otherwise affecting any privilege such 

18 person may claim with respect to such information 

19 under Federal or State law as to any person or enti20 ty other than such Board, supervisor, or authority. 

21 ‘‘(2) RULE OF CONSTRUCTION.—No provision 

22 of paragraph (1) may be construed as implying or 

23 establishing that— 

24 ‘‘(A) any person waives any privilege appli25 cable to information that is submitted or transVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 ferred under any circumstance to which para2 graph (1) does not apply; or 

3 ‘‘(B) any person would waive any privilege 

4 applicable to any information by submitting the 

5 information to the Administration, any State 

6 credit union supervisor, or foreign banking au7 thority, but for this subsection.’’. 

8 SEC. 608. CLARIFICATION OF APPLICATION REQUIRE9 MENTS FOR OPTIONAL CONVERSION FOR 

10 FEDERAL SAVINGS ASSOCIATIONS. 

11 (a) HOME OWNERS’ LOAN ACT.—Section 5(i)(5) of 

12 the Home Owners’ Loan Act (12 U.S.C. 1464(i)(5)) is 

13 amended to read as follows: 

14 ‘‘(5) CONVERSION TO NATIONAL OR STATE

15 BANK.— 

16 ‘‘(A) IN GENERAL.—Any Federal savings 

17 association chartered and in operation before 

18 the date of enactment of the Gramm-Leach-Bli19 ley Act, with branches in operation before such 

20 date of enactment in 1 or more States, may 

21 convert, at its option, with the approval of the 

22 Comptroller of the Currency for each national 

23 bank, and with the approval of the appropriate 

24 State bank supervisor and the appropriate Fed25 eral banking agency for each State bank, into 


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1 1 or more national or State banks, each of 

2 which may encompass 1 or more of the 

3 branches of the Federal savings association in 

4 operation before such date of enactment in 1 or 

5 more States subject to subparagraph (B). 

6 ‘‘(B) CONDITIONS OF CONVERSION.—The 

7 authority in subparagraph (A) shall apply only 

8 if each resulting national or State bank— 

9 ‘‘(i) will meet all financial, manage10 ment, and capital requirements applicable 

11 to the resulting national or State bank; 

12 and 

13 ‘‘(ii) if more than 1 national or State 

14 bank results from a conversion under this 

15 subparagraph, has received approval from 

16 the Federal Deposit Insurance Corporation 

17 under section 5(a) of the Federal Deposit 

18 Insurance Act. 

19 ‘‘(C) NO MERGER APPLICATION UNDER

20 FDIA REQUIRED.—No application under section 

21 18(c) of the Federal Deposit Insurance Act 

22 shall be required for a conversion under this 

23 paragraph. 

24 ‘‘(D) DEFINITIONS.—For purposes of this 

25 paragraph, the terms ‘State bank’ and ‘State 


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1 bank supervisor’ have the same meanings as in 

2 section 3 of the Federal Deposit Insurance 

3 Act.’’. 

4 (b) FEDERAL DEPOSIT INSURANCE ACT.—Section 

5 4(c) of the Federal Deposit Insurance Act (12 U.S.C. 

6 1814(c)) is amended— 

7 (1) by inserting ‘‘of this Act and section 5(i)(5) 

8 of the Home Owners’ Loan Act’’ after ‘‘Subject to 

9 section 5(d)’’; and 

10 (2) in paragraph (2), after ‘‘insured State,’’ by 

11 inserting ‘‘or Federal’’. 

12 SEC. 609. EXEMPTION FROM DISCLOSURE OF PRIVACY POL13 ICY FOR ACCOUNTANTS. 

14 (a) IN GENERAL.—Section 503 of the Gramm-Leach15 Bliley Act (15 U.S.C. 6803) is amended by adding at the 

16 end the following: 

17 ‘‘(d) EXEMPTION FOR CERTIFIED PUBLIC ACCOUNT18 ANTS.— 

19 ‘‘(1) IN GENERAL.—The disclosure require20 ments of subsection (a) do not apply to any person, 

21 to the extent that the person is— 

22 ‘‘(A) a certified public accountant; 

23 ‘‘(B) certified or licensed for such purpose 

24 by a State; and 


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1 ‘‘(C) subject to any provision of law, rule, 

2 or regulation issued by a legislative or regu3 latory body of the State, including rules of pro4 fessional conduct or ethics, that prohibits dis5 closure of nonpublic personal information with6 out the knowing and expressed consent of the 

7 consumer. 

8 ‘‘(2) LIMITATION.—Nothing in this subsection 

9 shall be construed to exempt or otherwise exclude 

10 any financial institution that is affiliated or becomes 

11 affiliated with a certified public accountant described 

12 in paragraph (1) from any provision of this section. 

13 ‘‘(3) DEFINITIONS.—For purposes of this sub14 section, the term ‘State’ means any State or terri15 tory of the United States, the District of Columbia, 

16 Puerto Rico, Guam, American Samoa, the Trust 

17 Territory of the Pacific Islands, the Virgin Islands, 

18 or the Northern Mariana Islands.’’. 

19 (b) CLERICAL AMENDMENTS.—Section 503 of the 

20 Gramm-Leach-Bliley Act (15 U.S.C. 6803) is amended— 

21 (1) by redesignating subsection (b) as sub22 section (c); and 

23 (2) in subsection (a), by striking ‘‘Such disclo24 sures’’ and inserting the following: 


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1 ‘‘(b) REGULATIONS.—Disclosures required by sub2 section (a)’’. 

3 SEC. 610. INFLATION ADJUSTMENT FOR THE SMALL DE4 POSITORY INSTITUTION EXCEPTION UNDER 

5 THE DEPOSITORY INSTITUTION MANAGE6 MENT INTERLOCKS ACT. 

7 Section 203(1) of the Depository Institution Manage8 ment Interlocks Act (12 U.S.C. 3202(1)) is amended by 

9 striking ‘‘$20,000,000’’ and inserting ‘‘$50,000,000’’. 

10 SEC. 611. MODIFICATION TO CROSS MARKETING RESTRIC11 TIONS. 

12 Section 4(n)(5)(B) of the Bank Holding Company 

13 Act of 1956 (12 U.S.C. 1843(n)(5)(B)) is amended by 

14 striking ‘‘subsection (k)(4)(I)’’ and inserting ‘‘subpara15 graph (H) or (I) of subsection (k)(4)’’. 

16 TITLE VII—BANKING AGENCY 

17 PROVISIONS 

18 SEC. 701. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW 

19 OF APPOINTMENT OF A RECEIVER FOR DE20 POSITORY INSTITUTIONS. 

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

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

23 (1) by amending the section heading to read as 

24 follows: 


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

2 BANK. 

3 ‘‘(a) IN GENERAL.—The Comptroller of the Cur4 rency’’; and 

5 (2) by adding at the end the following: 

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

7 Currency appoints a receiver under subsection (a), the na8 tional bank may, within 30 days thereafter, bring an ac9 tion in the United States district court for the judicial dis10 trict in which the home office of such bank is located, or 

11 in the United States District Court for the District of Co12 lumbia, for an order requiring the Comptroller of the Cur13 rency to remove the receiver, and the court shall, upon 

14 the merits, dismiss such action or direct the Comptroller 

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

16 (b) INSURED DEPOSITORY INSTITUTIONS.—Section 

17 11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C. 

18 1821(c)(7)) is amended to read as follows: 

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

20 appointed (including the appointment of the Cor21 poration as receiver by the Board of Directors) as 

22 conservator or receiver of a depository institution 

23 under paragraph (4), (9), or (10), the depository in24 stitution may, not later than 30 days thereafter, 

25 bring an action in the United States district court 

26 for the judicial district in which the home office of 


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1 such depository institution is located, or in the 

2 United States District Court for the District of Co3 lumbia, for an order requiring the Corporation to be 

4 removed as the conservator or receiver (regardless of 

5 how such appointment was made), and the court 

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

7 the Corporation to be removed as the conservator or 

8 receiver.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 subsections (a) and (b) shall apply with respect to con11 servators or receivers appointed on or after the date of 

12 enactment of this Act. 

13 SEC. 702. ENHANCING THE SAFETY AND SOUNDNESS OF IN14 SURED DEPOSITORY INSTITUTIONS. 

15 (a) CLARIFICATION RELATING TO THE ENFORCE16 ABILITY OF AGREEMENTS AND CONDITIONS.—The Fed17 eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 

18 amended by adding at the end the following: 

19 ‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS. 

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

21 (ii) of section 8(b)(6)(A) or section 38(e)(2)(E)(i), the ap22 propriate Federal banking agency for a depository institu23 tion may enforce, under section 8, the terms of— 

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

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1 tion-affiliated party in connection with any action on 

2 any application, notice, or other request concerning 

3 the depository institution; or 

4 ‘‘(2) any written agreement entered into be5 tween the agency and the depository institution or 

6 an institution-affiliated party. 

7 ‘‘(b) RECEIVERSHIPS AND CONSERVATORSHIPS.— 

8 After the appointment of the Corporation as the receiver 

9 or conservator for a depository institution, the Corpora10 tion may enforce any condition or agreement described in 

11 paragraph (1) or (2) of subsection (a) imposed on or en12 tered into with such institution or institution-affiliated 

13 party through an action brought in an appropriate United 

14 States district court.’’. 

15 (b) PROTECTION OF CAPITAL OF INSURED DEPOSI16 TORY INSTITUTIONS.—Section 18(u)(1) of the Federal 

17 Deposit Insurance Act (12 U.S.C. 1828(u)(1)) is amend18 ed— 

19 (1) by striking subparagraph (B); 

20 (2) by redesignating subparagraph (C) as sub21 paragraph (B); and 

22 (3) in subparagraph (A), by adding ‘‘and’’ at 

23 the end. 


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1 (c) CONFORMING AMENDMENTS.—Section 8(b) of 

2 the Federal Deposit Insurance Act (12 U.S.C. 1818(b)) 

3 is amended— 

4 (1) in paragraph (3), by striking ‘‘This sub5 section and subsections (c) through (s) and sub6 section (u) of this section’’ and inserting ‘‘This sub7 section, subsections (c) through (s) and subsection 

8 (u) of this section, and section 49 of this Act’’; and 

9 (2) in paragraph (4), by striking ‘‘This sub10 section and subsections (c) through (s) and sub11 section (u) of this section’’ and inserting ‘‘This sub12 section, subsections (c) through (s) and subsection 

13 (u) of this section, and section 49 of this Act’’. 

14 SEC. 703. CROSS GUARANTEE AUTHORITY. 

15 Section 5(e)(9)(A) of the Federal Deposit Insurance 

16 Act (12 U.S.C. 1815(e)(9)(A)) is amended to read as fol17 lows: 

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

19 same company; or’’. 

20 SEC. 704. GOLDEN PARACHUTE AUTHORITY AND NONBANK 

21 HOLDING COMPANIES. 

22 Section 18(k) of the Federal Deposit Insurance Act 

23 (12 U.S.C. 1828(k)) is amended— 


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1 (1) in paragraph (2)(A), by striking ‘‘or deposi2 tory institution holding company’’ and inserting ‘‘or 

3 covered company’’; 

4 (2) in paragraph (2), by striking subparagraph 

5 (B), and inserting the following: 

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

7 to believe that the institution-affiliated party is 

8 substantially responsible for— 

9 ‘‘(i) the insolvency of the depository 

10 institution or covered company; 

11 ‘‘(ii) the appointment of a conservator 

12 or receiver for the depository institution; or 

13 ‘‘(iii) the troubled condition of the de14 pository institution (as defined in the regu15 lations prescribed pursuant to section 

16 32(f)).’’; 

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

18 institution holding company’’ and inserting ‘‘covered 

19 company,’’; 

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

21 subparagraph (A), by striking ‘‘depository institu22 tion holding company’’ and inserting ‘‘covered com23 pany’’; 

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

25 company’’ and inserting ‘‘covered company’’; 


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1 (6) in paragraph (4)(A)— 

2 (A) by striking ‘‘depository institution 

3 holding company’’ each place that term appears 

4 and inserting ‘‘covered company’’; and 

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

6 place that term appears (other than in connec7 tion with the term referred to in subparagraph 

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

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

10 institution holding company’’ and inserting ‘‘covered 

11 company’’; 

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

13 following: 

14 ‘‘(D) COVERED COMPANY.—The term ‘cov15 ered company’ means any depository institution 

16 holding company (including any company re17 quired to file a report under section 4(f)(6) of 

18 the Bank Holding Company Act of 1956), or 

19 any other company that controls an insured de20 pository institution.’’; and 

21 (9) in paragraph (6)— 

22 (A) by striking ‘‘depository institution 

23 holding company’’ and inserting ‘‘covered com24 pany,’’; and 


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

2 inserting ‘‘or covered company’’. 

3 SEC. 705. AMENDMENTS RELATING TO CHANGE IN BANK 

4 CONTROL. 

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

6 U.S.C. 1817(j)) is amended— 

7 (1) in paragraph (1)(D)— 

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

9 and inserting ‘‘is needed— 

10 ‘‘(i) to investigate’’; 

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

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

13 (C) by adding at the end the following: 

14 ‘‘(ii) to analyze the safety and sound15 ness of any plans or proposals described in 

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

17 of the institution.’’; and 

18 (2) in paragraph (7)(C), by striking ‘‘the finan19 cial condition of any acquiring person’’ and inserting 

20 ‘‘either the financial condition of any acquiring per21 son or the future prospects of the institution’’. 


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1 SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RE2 SERVE BOARD WITH DISCRETION CON3 CERNING THE IMPUTATION OF CONTROL OF 

4 SHARES OF A COMPANY BY TRUSTEES. 

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

6 of 1956 (12 U.S.C. 1841(g)(2)) is amended by inserting 

7 before the period at the end ‘‘, unless the Board deter8 mines that such treatment is not appropriate in light of 

9 the facts and circumstances of the case and the purposes 

10 of this Act’’. 

11 SEC. 707. INTERAGENCY DATA SHARING. 

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

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

14 1817(a)(2)) is amended by adding at the end the fol15 lowing: 

16 ‘‘(C) DATA SHARING WITH OTHER AGEN17 CIES AND PERSONS.—In addition to reports of 

18 examination, reports of condition, and other re19 ports required to be regularly provided to the 

20 Corporation (with respect to all insured deposi21 tory institutions, including a depository institu22 tion for which the Corporation has been ap23 pointed conservator or receiver) or an appro24 priate State bank supervisor (with respect to a 

25 State depository institution) under subpara26 graph (A) or (B), a Federal banking agency 


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1 may, in the discretion of the agency, furnish 

2 any report of examination or other confidential 

3 supervisory information concerning any deposi4 tory institution or other entity examined by 

5 such agency under authority of any Federal 

6 law, to— 

7 ‘‘(i) any other Federal or State agen8 cy or authority with supervisory or regu9 latory authority over the depository institu10 tion or other entity; 

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

12 of such depository institution or entity; 

13 and 

14 ‘‘(iii) any other person that the Fed15 eral banking agency determines to be ap16 propriate.’’. 

17 (b) NATIONAL CREDIT UNION ADMINISTRATION.— 

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

19 U.S.C. 1782(a)) is amended by adding at the end the fol20 lowing: 

21 ‘‘(8) DATA SHARING WITH OTHER AGENCIES

22 AND PERSONS.—In addition to reports of examina23 tion, reports of condition, and other reports required 

24 to be regularly provided to the Board (with respect 

25 to all insured credit unions, including a credit union 


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1 for which the Corporation has been appointed con2 servator or liquidating agent) or an appropriate 

3 State commission, board, or authority having super4 vision of a State-chartered credit union, the Board 

5 may, in the discretion of the Board, furnish any re6 port of examination or other confidential supervisory 

7 information concerning any credit union or other en8 tity examined by the Board under authority of any 

9 Federal law, to— 

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

11 authority with supervisory or regulatory author12 ity over the credit union or other entity; 

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

14 such credit union or entity; and 

15 ‘‘(C) any other person that the Board de16 termines to be appropriate.’’. 

17 SEC. 708. CLARIFICATION OF EXTENT OF SUSPENSION, RE18 MOVAL, AND PROHIBITION AUTHORITY OF 

19 FEDERAL BANKING AGENCIES IN CASES OF 

20 CERTAIN CRIMES BY INSTITUTION-AFFILI21 ATED PARTIES. 

22 (a) INSURED DEPOSITORY INSTITUTIONS.— 

23 (1) IN GENERAL.—Section 8(g)(1) of the Fed24 eral Deposit Insurance Act (12 U.S.C. 1818(g)(1)) 

25 is amended— 


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1 (A) in subparagraph (A)— 

2 (i) by striking ‘‘is charged in any in3 formation, indictment, or complaint, with 

4 the commission of or participation in’’ and 

5 inserting ‘‘is the subject of any informa6 tion, indictment, or complaint, involving 

7 the commission of or participation in’’; 

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

9 the interests of the depository institution’s 

10 depositors or may threaten to impair pub11 lic confidence in the depository institu12 tion,’’ and insert ‘‘posed, poses, or may 

13 pose a threat to the interests of the deposi14 tors of, or threatened, threatens, or may 

15 threaten to impair public confidence in, 

16 any relevant depository institution (as de17 fined in subparagraph (E)),’’; and 

18 (iii) by striking ‘‘affairs of the deposi19 tory institution’’ and inserting ‘‘affairs of 

20 any depository institution’’; 

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

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

23 depository institution that the subject of the no24 tice is affiliated with at the time the notice is 

25 issued’’; 


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1 (C) in subparagraph (C)(i)— 

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

3 the interests of the depository institution’s 

4 depositors or may threaten to impair pub5 lic confidence in the depository institu6 tion,’’ and insert ‘‘posed, poses, or may 

7 pose a threat to the interests of the deposi8 tors of, or threatened, threatens, or may 

9 threaten to impair public confidence in, 

10 any relevant depository institution (as de11 fined in subparagraph (E)),’’; and 

12 (ii) by striking ‘‘affairs of the deposi13 tory institution’’ and inserting ‘‘affairs of 

14 any depository institution’’; 

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

16 ‘‘affairs of the depository institution’’ and in17 serting ‘‘affairs of any depository institution’’; 

18 (E) in subparagraph (D)(i), by striking 

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

20 depository institution that the subject of the 

21 order is affiliated with at the time the order is 

22 issued’’; and 

23 (F) by adding at the end the following: 

24 ‘‘(E) RELEVANT DEPOSITORY INSTITU25 TION.—For purposes of this subsection, the 


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1 term ‘relevant depository institution’ means any 

2 depository institution of which the party is or 

3 was an institution-affiliated party at the time at 

4 which— 

5 ‘‘(i) the information, indictment, or 

6 complaint described in subparagraph (A) 

7 was issued; or 

8 ‘‘(ii) the notice is issued under sub9 paragraph (A) or the order is issued under 

10 subparagraph (C)(i).’’. 

11 (2) CLERICAL AMENDMENT.—The subsection 

12 heading for section 8(g) of the Federal Deposit In13 surance Act (12 U.S.C. 1818(g)) is amended to read 

14 as follows: 

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

16 FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN

17 CRIMINAL OFFENSES.—’’. 

18 (b) INSURED CREDIT UNIONS.— 

19 (1) IN GENERAL.—Section 206(i)(1) of the 

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

21 amended— 

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

23 credit union’’ each place that term appears and 

24 inserting ‘‘any credit union’’; 


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

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

3 recently was, an institution-affiliated party’’ be4 fore the period at the end; 

5 (C) in subparagraph (C)— 

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

7 place such term appears and inserting 

8 ‘‘any credit union’’; and 

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

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

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

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

13 the credit union of which the subject of the 

14 order is, or most recently was, an institution-af15 filiated party’’; and 

16 (E) by adding at the end the following: 

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

18 Board may issue an order under this paragraph 

19 with respect to an individual who is an institu20 tion-affiliated party at a credit union at the 

21 time of an offense described in subparagraph 

22 (A) without regard to— 

23 ‘‘(i) whether such individual is an in24 stitution-affiliated party at any credit 


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1 union at the time the order is considered 

2 or issued by the Board; or 

3 ‘‘(ii) whether the credit union at 

4 which the individual was an institution-af5 filiated party at the time of the offense re6 mains in existence at the time the order is 

7 considered or issued by the Board.’’. 

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

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

10 amended by striking ‘‘(i)’’ at the beginning and in11 serting the following: 

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

13 FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN

14 CRIMINAL OFFENSES.—’’. 

15 SEC. 709. PROTECTION OF CONFIDENTIAL INFORMATION 

16 RECEIVED BY FEDERAL BANKING REGU17 LATORS FROM FOREIGN BANKING SUPER18 VISORS. 

19 Section 15 of the International Banking Act of 1978 

20 (12 U.S.C. 3109) is amended by adding at the end the 

21 following: 

22 ‘‘(c) CONFIDENTIAL INFORMATION RECEIVED FROM

23 FOREIGN SUPERVISORS.— 

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (3), a Federal banking agency may not be 


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1 compelled to disclose information received from a 

2 foreign regulatory or supervisory authority if— 

3 ‘‘(A) the Federal banking agency deter4 mines that the foreign regulatory or supervisory 

5 authority has, in good faith, determined and 

6 represented in writing to such Federal banking 

7 agency that public disclosure of the information 

8 would violate the laws applicable to that foreign 

9 regulatory or supervisory authority; and 

10 ‘‘(B) the relevant Federal banking agency 

11 obtained such information pursuant to— 

12 ‘‘(i) such procedures as the Federal 

13 banking agency may establish for use in 

14 connection with the administration and en15 forcement of Federal banking laws; or 

16 ‘‘(ii) a memorandum of understanding 

17 or other similar arrangement between the 

18 Federal banking agency and the foreign 

19 regulatory or supervisory authority. 

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

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

22 5, United States Code, this subsection shall be treat23 ed as a statute described in subsection (b)(3)(B) of 

24 such section. 


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

2 section shall be construed as— 

3 ‘‘(A) authorizing any Federal banking 

4 agency to withhold any information from any 

5 duly authorized committee of the House of Rep6 resentatives or the Senate; or 

7 ‘‘(B) preventing any Federal banking 

8 agency from complying with an order of a court 

9 of the United States in an action commenced by 

10 the United States or such agency. 

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

12 For purposes of this subsection, the term ‘Federal 

13 banking agency’ means the Board, the Comptroller 

14 of the Currency, the Federal Deposit Insurance Cor15 poration, and the Director of the Office of Thrift 

16 Supervision.’’. 

17 SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED 

18 INDIVIDUALS. 

19 (a) EXTENSION OF AUTOMATIC PROHIBITION.—Sec20 tion 19 of the Federal Deposit Insurance Act (12 U.S.C. 

21 1829) is amended by adding at the end the following: 

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

23 and (b) shall apply to any company (other than a foreign 

24 bank) that is a bank holding company and any organiza25 tion organized and operated under section 25A of the FedVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 eral Reserve Act or operating under section 25 of the Fed2 eral Reserve Act, as if such bank holding company or or3 ganization were an insured depository institution, except 

4 that such subsections shall be applied for purposes of this 

5 subsection by substituting ‘Board of Governors of the Fed6 eral Reserve System’ for ‘Corporation’ each place that 

7 term appears in such subsections. 

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

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

10 loan holding company and any subsidiary (other than a 

11 savings association) of a savings and loan holding com12 pany as if such savings and loan holding company or sub13 sidiary were an insured depository institution, except that 

14 subsections shall be applied for purposes of this subsection 

15 by substituting ‘Director of the Office of Thrift Super16 vision’ for ‘Corporation’ each place that term appears in 

17 such subsections.’’. 

18 (b) ENHANCED DISCRETION TO REMOVE CONVICTED

19 INDIVIDUALS.—Section 8(e)(2)(A) of the Federal Deposit 

20 Insurance Act (12 U.S.C. 1818(e)(2)(A)) is amended— 

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

22 (2) by striking the comma at the end of clause 

23 (iii) and inserting ‘‘; or’’; and 

24 (3) by adding at the end the following: 


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1 ‘‘(iv) an institution-affiliated party of 

2 a subsidiary (other than a bank) of a bank 

3 holding company has been convicted of any 

4 criminal offense involving dishonesty or a 

5 breach of trust, or a criminal violation of 

6 section 1956, 1957, or 1960 of title 18 

7 United States Code, or has agreed to enter 

8 into a pretrial diversion or similar program 

9 in connection with a prosecution for such 

10 an offense,’’. 

11 SEC. 711. COORDINATION OF STATE EXAMINATION AU12 THORITY. 

13 Section 10(h) of the Federal Deposit Insurance Act 

14 (12 U.S.C. 1820(h)) is amended to read as follows: 

15 ‘‘(h) COORDINATION OF EXAMINATION AUTHOR16 ITY.— 

17 ‘‘(1) STATE BANK SUPERVISORS OF HOME AND

18 HOST STATES.— 

19 ‘‘(A) HOME STATE OF BANK.—The appro20 priate State bank supervisor of the home State 

21 of an insured State bank has authority to ex22 amine and supervise the bank. 

23 ‘‘(B) HOST STATE BRANCHES.—The State 

24 bank supervisor of the home State of an in25 sured State bank and any State bank superVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 visor of an appropriate host State shall exercise 

2 its respective authority to supervise and exam3 ine the branches of the bank in a host State in 

4 accordance with the terms of any applicable co5 operative agreement between the home State 

6 bank supervisor and the State bank supervisor 

7 of the relevant host State. 

8 ‘‘(C) SUPERVISORY FEES.—Except as ex9 pressly provided in a cooperative agreement be10 tween the State bank supervisors of the home 

11 State and any host State of an insured State 

12 bank, only the State bank supervisor of the 

13 home State of an insured State bank may levy 

14 or charge State supervisory fees on the bank. 

15 ‘‘(2) HOST STATE EXAMINATION.— 

16 ‘‘(A) IN GENERAL.—With respect to a 

17 branch operated in a host State by an out-of18 State insured State bank that resulted from an 

19 interstate merger transaction approved under 

20 section 44, or that was established in such 

21 State pursuant to section 5155(g) of the Re22 vised Statutes of the United States, the third 

23 undesignated paragraph of section 9 of the 

24 Federal Reserve Act or section 18(d)(4) of this 


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1 Act, the appropriate State bank supervisor of 

2 such host State may— 

3 ‘‘(i) with written notice to the State 

4 bank supervisor of the bank’s home State 

5 and subject to the terms of any applicable 

6 cooperative agreement with the State bank 

7 supervisor of such home State, examine 

8 such branch for the purpose of determining 

9 compliance with host State laws that are 

10 applicable pursuant to section 24(j), in11 cluding those that govern community rein12 vestment, fair lending, and consumer pro13 tection; and 

14 ‘‘(ii) if expressly permitted under and 

15 subject to the terms of a cooperative agree16 ment with the State bank supervisor of the 

17 bank’s home State or if such out-of-State 

18 insured State bank has been determined to 

19 be in a troubled condition by either the 

20 State bank supervisor of the bank’s home 

21 State or the bank’s appropriate Federal 

22 banking agency, participate in the exam23 ination of the bank by the State bank su24 pervisor of the bank’s home State to ascer25 tain that the activities of the branch in 


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1 such host State are not conducted in an 

2 unsafe or unsound manner. 

3 ‘‘(B) NOTICE OF DETERMINATION.— 

4 ‘‘(i) IN GENERAL.—The State bank 

5 supervisor of the home State of an insured 

6 State bank shall notify the State bank su7 pervisor of each host State of the bank if 

8 there has been a final determination that 

9 the bank is in a troubled condition. 

10 ‘‘(ii) TIMING OF NOTICE.—The State 

11 bank supervisor of the home State of an 

12 insured State bank shall provide notice 

13 under clause (i) as soon as is reasonably 

14 possible, but in all cases not later than 15 

15 business days after the date on which the 

16 State bank supervisor has made such final 

17 determination or has received written noti18 fication of such final determination. 

19 ‘‘(3) HOST STATE ENFORCEMENT.—If the State 

20 bank supervisor of a host State determines that a 

21 branch of an out-of-State insured State bank is vio22 lating any law of the host State that is applicable to 

23 such branch pursuant to section 24(j), including a 

24 law that governs community reinvestment, fair lend25 ing, or consumer protection, the State bank superVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 visor of the host State or, to the extent authorized 

2 by the law of the host State, a host State law en3 forcement officer may, with written notice to the 

4 State bank supervisor of the bank’s home State and 

5 subject to the terms of any applicable cooperative 

6 agreement with the State bank supervisor of the 

7 bank’s home State, undertake such enforcement ac8 tions and proceedings as would be permitted under 

9 the law of the host State as if the branch were a 

10 bank chartered by that host State. 

11 ‘‘(4) COOPERATIVE AGREEMENT.— 

12 ‘‘(A) IN GENERAL.—The State bank super13 visors from 2 or more States may enter into co14 operative agreements to facilitate State regu15 latory supervision of State banks, including co16 operative agreements relating to the coordina17 tion of examinations and joint participation in 

18 examinations. 

19 ‘‘(B) DEFINITION.—For purposes of this 

20 subsection, the term ‘cooperative agreement’ 

21 means a written agreement that is signed by 

22 the home State bank supervisor and the host 

23 State bank supervisor to facilitate State regu24 latory supervision of State banks, and includes 

25 nationwide or multi-state cooperative agreeVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 ments and cooperative agreements solely be2 tween the home State and host State. 

3 ‘‘(C) RULE OF CONSTRUCTION.—Except 

4 for State bank supervisors, no provision of this 

5 subsection relating to such cooperative agree6 ments shall be construed as limiting in any way 

7 the authority of home State and host State law 

8 enforcement officers, regulatory supervisors, or 

9 other officials that have not signed such cooper10 ative agreements to enforce host State laws that 

11 are applicable to a branch of an out-of-State in12 sured State bank located in the host State pur13 suant to section 24(j). 

14 ‘‘(5) FEDERAL REGULATORY AUTHORITY.—No 

15 provision of this subsection shall be construed as 

16 limiting in any way the authority of any Federal 

17 banking agency. 

18 ‘‘(6) STATE TAXATION AUTHORITY NOT AF19 FECTED.—No provision of this subsection shall be 

20 construed as affecting the authority of any State or 

21 political subdivision of any State to adopt, apply, or 

22 administer any tax or method of taxation to any 

23 bank, bank holding company, or foreign bank, or 

24 any affiliate of any bank, bank holding company, or 

25 foreign bank, to the extent that such tax or tax 


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1 method is otherwise permissible by or under the 

2 Constitution of the United States or other Federal 

3 law. 

4 ‘‘(7) DEFINITIONS.—For purpose of this sec5 tion, the following definitions shall apply: 

6 ‘‘(A) HOST STATE, HOME STATE, OUT-OF7 STATE BANK.—The terms ‘host State’, ‘home 

8 State’, and ‘out-of-State bank’ have the same 

9 meanings as in section 44(g). 

10 ‘‘(B) STATE SUPERVISORY FEES.—The 

11 term ‘State supervisory fees’ means assess12 ments, examination fees, branch fees, license 

13 fees, and all other fees that are levied or 

14 charged by a State bank supervisor directly 

15 upon an insured State bank or upon branches 

16 of an insured State bank. 

17 ‘‘(C) TROUBLED CONDITION.—Solely for 

18 purposes of paragraph (2)(B), an insured State 

19 bank has been determined to be in ‘troubled 

20 condition’ if the bank— 

21 ‘‘(i) has a composite rating, as deter22 mined in its most recent report of exam23 ination, of 4 or 5 under the Uniform Fi24 nancial Institutions Ratings System; 


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1 ‘‘(ii) is subject to a proceeding initi2 ated by the Corporation for termination or 

3 suspension of deposit insurance; or 

4 ‘‘(iii) is subject to a proceeding initi5 ated by the State bank supervisor of the 

6 bank’s home State to vacate, revoke, or 

7 terminate the charter of the bank, or to 

8 liquidate the bank, or to appoint a receiver 

9 for the bank. 

10 ‘‘(D) FINAL DETERMINATION.—For pur11 poses of paragraph (2)(B), the term ‘final de12 termination’ means the transmittal of a report 

13 of examination to the bank or transmittal of of14 ficial notice of proceedings to the bank.’’. 

15 SEC. 712. DEPUTY DIRECTOR; SUCCESSION AUTHORITY 

16 FOR DIRECTOR OF THE OFFICE OF THRIFT 

17 SUPERVISION. 

18 (a) ESTABLISHMENT OF POSITION OF DEPUTY DI19 RECTOR.—Section 3(c)(5) of the Home Owners’ Loan Act 

20 (12 U.S.C. 1462a(c)(5)) is amended to read as follows: 

21 ‘‘(5) DEPUTY DIRECTOR.— 

22 ‘‘(A) IN GENERAL.—The Secretary of the 

23 Treasury shall appoint a Deputy Director, and 

24 may appoint not more than 3 additional Deputy 

25 Directors of the Office. 


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1 ‘‘(B) FIRST DEPUTY DIRECTOR.—If the 

2 Secretary of the Treasury appoints more than 

3 1 Deputy Director of the Office, the Secretary 

4 shall designate one such appointee as the First 

5 Deputy Director. 

6 ‘‘(C) DUTIES.—Each Deputy Director ap7 pointed under this paragraph shall take an oath 

8 of office and perform such duties as the Direc9 tor shall direct. 

10 ‘‘(D) COMPENSATION AND BENEFITS.— 

11 The Director shall fix the compensation and 

12 benefits for each Deputy Director in accordance 

13 with this Act.’’. 

14 (b) SERVICE OF DEPUTY DIRECTOR AS ACTING DI15 RECTOR.—Section 3(c)(3) of the Home Owners’ Loan Act 

16 (12 U.S.C. 1462a(c)(3)) is amended— 

17 (1) by striking ‘‘VACANCY.—A vacancy in the 

18 position of Director’’ and inserting ‘‘VACANCY.— 

19 ‘‘(A) IN GENERAL.—A vacancy in the posi20 tion of Director’’; and 

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

22 ‘‘(B) ACTING DIRECTOR.— 

23 ‘‘(i) IN GENERAL.—In the event of a 

24 vacancy in the position of Director or dur25 ing the absence or disability of the DirecVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 tor, the Deputy Director shall serve as 

2 Acting Director. 

3 ‘‘(ii) SUCCESSION IN CASE OF 2 OR

4 MORE DEPUTY DIRECTORS.—If there are 2 

5 or more Deputy Directors serving at the 

6 time a vacancy in the position of Director 

7 occurs or the absence or disability of the 

8 Director commences, the First Deputy Di9 rector shall serve as Acting Director under 

10 clause (i) followed by such other Deputy 

11 Directors under any order of succession 

12 the Director may establish. 

13 ‘‘(iii) AUTHORITY OF ACTING DIREC14 TOR.—Any Deputy Director, while serving 

15 as Acting Director under this subpara16 graph, shall be vested with all authority, 

17 duties, and privileges of the Director under 

18 this Act and any other provision of Federal 

19 law.’’. 

20 SEC. 713. OFFICE OF THRIFT SUPERVISION REPRESENTA21 TION ON BASEL COMMITTEE ON BANKING SU22 PERVISION. 

23 (a) IN GENERAL.—Section 912 of the International 

24 Lending Supervision Act of 1983 (12 U.S.C. 3911) is 

25 amended— 


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1 (1) in the section heading, by inserting at the 

2 end the following: ‘‘AND THE OFFICE OF THRIFT

3 SUPERVISION’’; 

4 (2) by striking ‘‘As one of the three’’ and in5 serting the following: 

6 ‘‘(a) IN GENERAL.—As one of the 4’’; and 

7 (3) by adding at the end the following: 

8 ‘‘(b) As one of the 4 Federal bank regulatory and 

9 supervisory agencies, the Office of Thrift Supervision shall 

10 be given equal representation with the Board of Governors 

11 of the Federal Reserve System, the Office of the Comp12 troller of the Currency, and the Federal Deposit Insurance 

13 Corporation on the Committee on Banking Regulations 

14 and Supervisory Practices of the Group of Ten Countries 

15 and Switzerland.’’. 

16 (b) CONFORMING AMENDMENTS.—Section 910(a) of 

17 the International Lending Supervision Act of 1983 (12 

18 U.S.C. 3909(a)) is amended— 

19 (1) in paragraph (2), by striking ‘‘insured 

20 bank’’ and inserting ‘‘insured depository institu21 tion’’; and 

22 (2) in paragraph (3), by striking ‘‘an ‘insured 

23 bank’, as such term is used in section 3(h)’’ and in24 serting ‘‘an ‘insured depository institution’, as such 

25 term is defined in section 3(c)(2)’’. 


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1 SEC. 714. FEDERAL FINANCIAL INSTITUTIONS EXAMINA2 TION COUNCIL. 

3 (a) COUNCIL MEMBERSHIP.—Section 1004(a) of the 

4 Federal Financial Institutions Examination Council Act of 

5 1978 (12 U.S.C. 3303(a)) is amended— 

6 (1) in paragraph (4), by striking ‘‘Thrift’’ and 

7 all that follows through the end of the paragraph 

8 and inserting ‘‘Thrift Supervision,’’; 

9 (2) in paragraph (5) by striking the period at 

10 the end and inserting ‘‘, and’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(6) the Chairman of the State Liaison Com13 mittee.’’. 

14 (b) CHAIRPERSON OF LIAISON COMMITTEE.—Section 

15 1007 of the Federal Financial Institutions Examination 

16 Council Act of 1978 (12 U.S.C. 3306) is amended by add17 ing at the end the following: ‘‘Members of the Liaison 

18 Committee shall elect a chairperson from among the mem19 bers serving on the committee.’’. 

20 SEC. 715. TECHNICAL AMENDMENTS RELATING TO IN21 SURED INSTITUTIONS. 

22 (a) TECHNICAL AMENDMENT TO THE FEDERAL DE23 POSIT INSURANCE ACT.—Section 8(i)(3) of the Federal 

24 Deposit Insurance Act (12 U.S.C. 1818(i)(3)) is amended 

25 by inserting ‘‘or order’’ after ‘‘notice’’ each place that term 

26 appears. 


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1 (b) TECHNICAL AMENDMENT TO THE FEDERAL

2 CREDIT UNION ACT.—Section 206(k)(3) of the Federal 

3 Credit Union Act (12 U.S.C. 1786(k)(3)) is amended by 

4 inserting ‘‘or order’’ after ‘‘notice’’ each place that term 

5 appears. 

6 SEC. 716. CLARIFICATION OF ENFORCEMENT AUTHORITY. 

7 (a) ACTIONS ON APPLICATIONS, NOTICES, AND

8 OTHER REQUESTS; CLARIFICATION THAT CHANGE IN

9 CONTROL CONDITIONS ARE ENFORCEABLE.—Section 8 of 

10 the Federal Deposit Insurance Act (12 U.S.C. 1818) is 

11 amended— 

12 (1) in subsection (b)(1), in the first sentence, 

13 by striking ‘‘the granting of any application or other 

14 request by the depository institution’’ and inserting 

15 ‘‘any action on any application, notice, or other re16 quest by the depository institution or institution-af17 filiated party,’’; 

18 (2) in subsection (e)(1)(A)(i)(III), by striking 

19 ‘‘the grant of any application or other request by 

20 such depository institution’’ and inserting ‘‘any ac21 tion on any application, notice, or request by such 

22 depository institution or institution-affiliated party’’; 

23 and 

24 (3) in subsection (i)(2)(A)(iii), by striking ‘‘the 

25 grant of any application or other request by such deVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 pository institution’’ and inserting ‘‘any action on 

2 any application, notice, or other request by the de3 pository institution or institution-affiliated party’’. 

4 (b) CLARIFICATION THAT CHANGE IN CONTROL

5 CONDITIONS ARE ENFORCEABLE.—Section 206 of the 

6 Federal Credit Union Act (12 U.S.C. 1786) is amended— 

7 (1) in subsection (b)(1), in the first sentence, 

8 by striking ‘‘the granting of any application or other 

9 request by the credit union’’ and inserting ‘‘any ac10 tion on any application, notice, or other request by 

11 the credit union or institution-affiliated party,’’; 

12 (2) in subsection (g)(1)(A)(i)(III), by striking 

13 ‘‘the grant of any application or other request by 

14 such credit union’’ and inserting ‘‘any action on any 

15 application, notice, or request by such credit union 

16 or institution-affiliated party’’; and 

17 (3) in subsection (k)(2)(A)(iii), by striking ‘‘the 

18 grant of any application or other request by such 

19 credit union’’ and inserting ‘‘any action on any ap20 plication, notice, or other request by the credit union 

21 or institution-affiliated party’’. 

22 SEC. 717. FEDERAL BANKING AGENCY AUTHORITY TO EN23 FORCE DEPOSIT INSURANCE CONDITIONS. 

24 Section 8 of the Federal Deposit Insurance Act (12 

25 U.S.C. 1818) is amended— 


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1 (1) in subsection (b)(1), in the 1st sentence— 

2 (A) by striking ‘‘in writing by the agency’’ 

3 and inserting ‘‘in writing by a Federal banking 

4 agency’’; and 

5 (B) by striking ‘‘the agency may issue and 

6 serve’’ and inserting ‘‘the appropriate Federal 

7 banking agency for the depository institution 

8 may issue and serve’’; 

9 (2) in subsection (e)(1)— 

10 (A) in subparagraph (A)(i)(III), by strik11 ing ‘‘in writing by the appropriate Federal 

12 banking agency’’ and inserting ‘‘in writing by a 

13 Federal banking agency’’; and 

14 (B) in the undesignated matter at the end, 

15 by striking ‘‘the agency may serve upon such 

16 party’’ and inserting ‘‘the appropriate Federal 

17 banking agency for the depository institution 

18 may serve upon such party’’; and 

19 (3) in subsection (i)(2)(A)(iii), by striking ‘‘in 

20 writing by the appropriate Federal banking agency’’ 

21 and inserting ‘‘in writing by a Federal banking 

22 agency’’. 


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1 SEC. 718. RECEIVER OR CONSERVATOR CONSENT REQUIRE2 MENT. 

3 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

4 11(e)(13) of the Federal Deposit Insurance Act (12 

5 U.S.C. 1821(e)(13)) is amended by adding at the end the 

6 following: 

7 ‘‘(C) CONSENT REQUIREMENT.— 

8 ‘‘(i) IN GENERAL.—Except as other9 wise provided by this section or section 15, 

10 no person may exercise any right or power 

11 to terminate, accelerate, or declare a de12 fault under any contract to which the de13 pository institution is a party, or to obtain 

14 possession of or exercise control over any 

15 property of the institution or affect any 

16 contractual rights of the institution, with17 out the consent of the conservator or re18 ceiver, as appropriate, during the 45-day 

19 period beginning on the date of the ap20 pointment of the conservator, or during the 

21 90-day period beginning on the date of the 

22 appointment of the receiver, as applicable. 

23 ‘‘(ii) CERTAIN EXCEPTIONS.—No pro24 vision of this subparagraph shall apply to 

25 a director or officer liability insurance con26 tract or a depository institution bond, to 


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1 the rights of parties to certain qualified fi2 nancial contracts pursuant to paragraph 

3 (8), or to the rights of parties to netting 

4 contracts pursuant to subtitle A of title IV 

5 of the Federal Deposit Insurance Corpora6 tion Improvement Act of 1991 (12 U.S.C. 

7 4401 et seq.), or shall be construed as per8 mitting the conservator or receiver to fail 

9 to comply with otherwise enforceable provi10 sions of such contract. 

11 ‘‘(iii) RULE OF CONSTRUCTION.— 

12 Nothing in this subparagraph shall be con13 strued to limit or otherwise affect the ap14 plicability of title 11, United States 

15 Code.’’. 

16 (b) INSURED CREDIT UNIONS.—Section 207(c)(12) 

17 of the Federal Credit Union Act (12 U.S.C. 1787(c)(12)) 

18 is amended by adding the following: 

19 ‘‘(C) CONSENT REQUIREMENT.— 

20 ‘‘(i) IN GENERAL.—Except as other21 wise provided by this section, no person 

22 may exercise any right or power to termi23 nate, accelerate, or declare a default under 

24 any contract to which the credit union is a 

25 party, or to obtain possession of or exercise 


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1 control over any property of the credit 

2 union or affect any contractual rights of 

3 the credit union, without the consent of the 

4 conservator or liquidating agent, as appro5 priate, during the 45-day period beginning 

6 on the date of the appointment of the con7 servator, or during the 90-day period be8 ginning on the date of the appointment of 

9 the liquidating agent, as applicable. 

10 ‘‘(ii) CERTAIN EXCEPTIONS.—No pro11 vision of this subparagraph shall apply to 

12 a director or officer liability insurance con13 tract or a credit union bond, or to the 

14 rights of parties to certain qualified finan15 cial contracts pursuant to paragraph (8), 

16 or shall be construed as permitting the 

17 conservator or liquidating agent to fail to 

18 comply with otherwise enforceable provi19 sions of such contract. 

20 ‘‘(iii) RULE OF CONSTRUCTION.— 

21 Nothing in this subparagraph shall be con22 strued to limit or otherwise affect the ap23 plicability of title 11, United States 

24 Code.’’. 


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1 SEC. 719. ACQUISITION OF FICO SCORES. 

2 Section 604(a) of the Fair Credit Reporting Act (15 

3 U.S.C. 1681b(a)) is amended by adding at the end the 

4 following: 

5 ‘‘(6) To the Federal Deposit Insurance Cor6 poration or the National Credit Union Administra7 tion as part of its preparation for its appointment or 

8 as part of its exercise of powers, as conservator, re9 ceiver, or liquidating agent for an insured depository 

10 institution or insured credit union under the Federal 

11 Deposit Insurance Act or the Federal Credit Union 

12 Act, or other applicable Federal or State law, or in 

13 connection with the resolution or liquidation of a 

14 failed or failing insured depository institution or in15 sured credit union, as applicable.’’. 

16 SEC. 720. ELIMINATION OF CRIMINAL INDICTMENTS 

17 AGAINST RECEIVERSHIPS. 

18 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

19 15(b) of the Federal Deposit Insurance Act (12 U.S.C. 

20 1825(b)) is amended by inserting immediately after para21 graph (3) the following: 

22 ‘‘(4) EXEMPTION FROM CRIMINAL PROSECU23 TION.—The Corporation shall be exempt from all 

24 prosecution by the United States or any State, coun25 ty, municipality, or local authority for any criminal 

26 offense arising under Federal, State, county, municVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 ipal, or local law, which was allegedly committed by 

2 the institution, or persons acting on behalf of the in3 stitution, prior to the appointment of the Corpora4 tion as receiver.’’. 

5 (b) INSURED CREDIT UNIONS.—Section 207(b)(2) of 

6 the Federal Credit Union Act (12 U.S.C. 1787(b)(2)) is 

7 amended by adding at the end the following: 

8 ‘‘(K) EXEMPTION FROM CRIMINAL PROS9 ECUTION.—The Administration shall be exempt 

10 from all prosecution by the United States or 

11 any State, county, municipality, or local author12 ity for any criminal offense arising under Fed13 eral, State, county, municipal, or local law, 

14 which was allegedly committed by a credit 

15 union, or persons acting on behalf of a credit 

16 union, prior to the appointment of the Adminis17 tration as liquidating agent.’’. 

18 SEC. 721. RESOLUTION OF DEPOSIT INSURANCE DISPUTES. 

19 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

20 11(f) of the Federal Deposit Insurance Act (12 U.S.C. 

21 1821(f)) is amended by striking paragraphs (3) through 

22 (5) and inserting the following: 

23 ‘‘(3) RESOLUTION OF DISPUTES.—A determina24 tion by the Corporation regarding any claim for in25 surance coverage shall be treated as a final deterVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 mination for purposes of this section. In its discre2 tion, the Corporation may promulgate regulations 

3 prescribing procedures for resolving any disputed 

4 claim relating to any insured deposit or any deter5 mination of insurance coverage with respect to any 

6 deposit. 

7 ‘‘(4) REVIEW OF CORPORATION DETERMINA8 TION.—A final determination made by the Corpora9 tion regarding any claim for insurance coverage shall 

10 be a final agency action reviewable in accordance 

11 with chapter 7 of title 5, United States Code, by the 

12 United States district court for the Federal judicial 

13 district where the principal place of business of the 

14 depository institution is located. 

15 ‘‘(5) STATUTE OF LIMITATIONS.—Any request 

16 for review of a final determination by the Corpora17 tion regarding any claim for insurance coverage shall 

18 be filed with the appropriate United States district 

19 court not later than 60 days after the date on which 

20 such determination is issued.’’. 

21 (b) INSURED CREDIT UNIONS.—Section 207(d) of 

22 the Federal Credit Union Act (12 U.S.C. 1787(d)) is 

23 amended by striking paragraphs (3) through (5) and in24 serting the following: 


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1 ‘‘(3) RESOLUTION OF DISPUTES.—A determina2 tion by the Administration regarding any claim for 

3 insurance coverage shall be treated as a final deter4 mination for purposes of this section. In its discre5 tion, the Board may promulgate regulations pre6 scribing procedures for resolving any disputed claim 

7 relating to any insured deposit or any determination 

8 of insurance coverage with respect to any deposit. A 

9 final determination made by the Board regarding 

10 any claim for insurance coverage shall be a final 

11 agency action reviewable in accordance with chapter 

12 7 of title 5, United States Code, by the United 

13 States district court for the Federal judicial district 

14 where the principal place of business of the credit 

15 union is located. 

16 ‘‘(4) STATUTE OF LIMITATIONS.—Any request 

17 for review of a final determination by the Board re18 garding any claim for insurance coverage shall be 

19 filed with the appropriate United States district 

20 court not later than 60 days after the date on which 

21 such determination is issued.’’. 

22 SEC. 722. RECORDKEEPING. 

23 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

24 11(d)(15)(D) of the Federal Deposit Insurance Act (12 

25 U.S.C. 1821(d)(15)(D)) is amended— 


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1 (1) by striking ‘‘After the end of the 6-year pe2 riod’’ and inserting the following: 

3 ‘‘(i) IN GENERAL.—Except as pro4 vided in clause (ii), after the end of the 6- 

5 year period’’; and 

6 (2) by adding at the end the following: 

7 ‘‘(ii) OLD RECORDS.—Notwith8 standing clause (i), the Corporation may 

9 destroy records of an insured depository 

10 institution which are at least 10 years old 

11 as of the date on which the Corporation is 

12 appointed as the receiver of such deposi13 tory institution in accordance with clause 

14 (i) at any time after such appointment is 

15 final, without regard to the 6-year period 

16 of limitation contained in clause (i).’’. 

17 (b) INSURED CREDIT UNIONS.—Section 

18 207(b)(15)(D) of the Federal Credit Union Act (12 

19 U.S.C. 1787(b)(15)(D)) is amended— 

20 (1) by striking ‘‘After the end of the 6-year pe21 riod’’ and inserting the following: 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clause (ii), after the end of the 6- 

24 year period’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(ii) OLD RECORDS.—Notwith2 standing clause (i) the Board may destroy 

3 records of an insured credit union which 

4 are at least 10 years old as of the date on 

5 which the Board is appointed as liqui6 dating agent of such credit union in ac7 cordance with clause (i) at any time after 

8 such appointment is final, without regard 

9 to the 6-year period of limitation contained 

10 in clause (i).’’. 

11 SEC. 723. PRESERVATION OF RECORDS. 

12 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

13 10(f) of the Federal Deposit Insurance Act (12 U.S.C. 

14 1820(f)) is amended to read as follows: 

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

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

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

18 kept by the agency or in the possession or custody 

19 of the agency to be— 

20 ‘‘(A) photographed or microphotographed 

21 or otherwise reproduced upon film; or 

22 ‘‘(B) preserved in any electronic medium 

23 or format which is capable of— 

24 ‘‘(i) being read or scanned by com25 puter; and 


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1 ‘‘(ii) being reproduced from such elec2 tronic medium or format by printing any 

3 other form of reproduction of electronically 

4 stored data. 

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

6 photographs, microphotographs, or photographic 

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

8 or reproduction of electronically stored data de9 scribed in paragraph (1)(B) shall be deemed to be 

10 an original record for all purposes, including intro11 duction in evidence in all State and Federal courts 

12 or administrative agencies, and shall be admissible 

13 to prove any act, transaction, occurrence, or event 

14 therein recorded. 

15 ‘‘(3) AUTHORITY OF THE FEDERAL BANKING

16 AGENCIES.—Any photographs, microphotographs, or 

17 photographic film or copies thereof described in 

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

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

20 preserved in such manner as the Federal banking 

21 agency shall prescribe, and the original records, pa22 pers, or documents may be destroyed or otherwise 

23 disposed of as the Federal banking agency may di24 rect.’’. 


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1 (b) INSURED CREDIT UNIONS.—Section 206(s) of 

2 the Federal Credit Union Act (12 U.S.C. 1786(s)) is 

3 amended by adding at the end the following: 

4 ‘‘(9) PRESERVATION OF RECORDS.— 

5 ‘‘(A) IN GENERAL.—The Board may cause 

6 any and all records, papers, or documents kept 

7 by the Administration or in the possession or 

8 custody of the Administration to be— 

9 ‘‘(i) photographed or microphoto10 graphed or otherwise reproduced upon 

11 film; or 

12 ‘‘(ii) preserved in any electronic me13 dium or format which is capable of— 

14 ‘‘(I) being read or scanned by 

15 computer; and 

16 ‘‘(II) being reproduced from such 

17 electronic medium or format by print18 ing or any other form of reproduction 

19 of electronically stored data. 

20 ‘‘(B) TREATMENT AS ORIGINAL

21 RECORDS.—Any photographs, micrographs, or 

22 photographic film or copies thereof described in 

23 subparagraph (A)(i) or reproduction of elec24 tronically stored data described in subpara25 graph (A)(ii) shall be deemed to be an original 


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1 record for all purposes, including introduction 

2 in evidence in all State and Federal courts or 

3 administrative agencies, and shall be admissible 

4 to prove any act, transaction, occurrence, or 

5 event therein recorded. 

6 ‘‘(C) AUTHORITY OF THE ADMINISTRA7 TION.—Any photographs, microphotographs, or 

8 photographic film or copies thereof described in 

9 subparagraph (A)(i) or reproduction of elec10 tronically stored data described in subpara11 graph (A)(ii) shall be preserved in such manner 

12 as the Administration shall prescribe, and the 

13 original records, papers, or documents may be 

14 destroyed or otherwise disposed of as the Ad15 ministration may direct.’’. 

16 SEC. 724. TECHNICAL AMENDMENTS TO INFORMATION 

17 SHARING PROVISION IN THE FEDERAL DE18 POSIT INSURANCE ACT. 

19 Section 11(t) of the Federal Deposit Insurance Act 

20 (12 U.S.C. 1821(t)) is amended— 

21 (1) in paragraph (1), by inserting ‘‘, in any ca22 pacity,’’ after ‘‘A covered agency’’; and 

23 (2) in paragraph (2)(A)— 

24 (A) in clause (i), by striking ‘‘appro25 priate’’; 


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1 (B) by striking clause (ii); and 

2 (C) by redesignating clauses (iii) through 

3 (vi) as clauses (ii) through (v), respectively. 

4 SEC. 725. TECHNICAL AND CONFORMING AMENDMENTS RE5 LATING TO BANKS OPERATING UNDER THE 

6 CODE OF LAW FOR THE DISTRICT OF COLUM7 BIA. 

8 (a) FEDERAL RESERVE ACT.—The Federal Reserve 

9 Act (12 U.S.C. 221 et seq.) is amended— 

10 (1) in the second undesignated paragraph of 

11 the first section (12 U.S.C. 221), by adding at the 

12 end the following: ‘‘For purposes of this Act, a State 

13 bank includes any bank which is operating under the 

14 Code of Law for the District of Columbia.’’; and 

15 (2) in the first sentence of the first undesig16 nated paragraph of section 9 (12 U.S.C. 321), by 

17 striking ‘‘incorporated by special law of any State, 

18 or’’ and inserting ‘‘incorporated by special law of 

19 any State, operating under the Code of Law for the 

20 District of Columbia, or’’. 

21 (b) BANK CONSERVATION ACT.—Section 202 of the 

22 Bank Conservation Act (12 U.S.C. 202) is amended— 

23 (1) by striking ‘‘means (1) any national’’ and 

24 inserting ‘‘means any national’’; and 


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1 (2) by striking ‘‘, and (2) any bank or trust 

2 company located in the District of Columbia and op3 erating under the supervision of the Comptroller of 

4 the Currency’’. 

5 (c) DEPOSITORY INSTITUTION DEREGULATION AND

6 MONETARY CONTROL ACT OF 1980.—Part C of title VII 

7 of the Depository Institution Deregulation and Monetary 

8 Control Act of 1980 (12 U.S.C. 216 et seq.) is amended— 

9 (1) in paragraph (1) of section 731 (12 U.S.C. 

10 216(1)), by striking ‘‘and closed banks in the Dis11 trict of Columbia’’; and 

12 (2) in paragraph (2) of section 732 (12 U.S.C. 

13 216a(2)), by striking ‘‘or closed banks in the Dis14 trict of Columbia’’. 

15 (d) FEDERAL DEPOSIT INSURANCE ACT.—Section 

16 3(a)(2)(B) of the Federal Deposit Insurance Act (12 

17 U.S.C. 1813(a)(2)(B)) is amended by striking ‘‘(except a 

18 national bank)’’. 

19 (e) NATIONAL BANK CONSOLIDATION AND MERGER

20 ACT.—Section 7(1) of the National Bank Consolidation 

21 and Merger Act (12 U.S.C. 215b(1)) is amended by strik22 ing ‘‘(except a national banking association located in the 

23 District of Columbia)’’. 

24 (f) ACT OF AUGUST 17, 1950.—Section 1(a) of the 

25 Act entitled ‘‘An Act to provide for the conversion of naVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 tional banking associations into and their merger or con2 solidation with State banks, and for other purposes’’ and 

3 approved August 17, 1950 (12 U.S.C. 214(a)) is amended 

4 by striking ‘‘(except a national banking association)’’. 

5 (g) FEDERAL TRADE COMMISSION ACT.—Section 

6 18(f)(2) of the Federal Trade Commission Act (15 U.S.C. 

7 57a(f)(2)) is amended— 

8 (1) in subparagraph (A), by striking ‘‘, banks 

9 operating under the code of law for the District of 

10 Columbia,’’; and 

11 (2) in subparagraph (B), by striking ‘‘and 

12 banks operating under the code of law for the Dis13 trict of Columbia’’. 

14 SEC. 726. TECHNICAL CORRECTIONS TO THE FEDERAL 

15 CREDIT UNION ACT. 

16 The Federal Credit Union Act (12 U.S.C. 1751 et 

17 seq.) is amended as follows: 

18 (1) In section 101(3), strike ‘‘and’’ after the 

19 semicolon. 

20 (2) In section 101(5), strike the terms ‘‘account 

21 account’’ and ‘‘account accounts’’ each place any 

22 such term appears and insert ‘‘account’’. 

23 (3) In section 107(5)(E), strike the period at 

24 the end and insert a semicolon. 


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1 (4) In each of paragraphs (6) and (7) of section 

2 107, strike the period at the end and insert a semi3 colon. 

4 (5) In section 107(7)(D), strike ‘‘the Federal 

5 Savings and Loan Insurance Corporation or’’. 

6 (6) In section 107(7)(E), strike ‘‘the Federal 

7 Home Loan Bank Board,’’ and insert ‘‘the Federal 

8 Housing Finance Board,’’. 

9 (7) In section 107(9), strike ‘‘subchapter III’’ 

10 and insert ‘‘title III’’. 

11 (8) In section 107(13), strike ‘‘and’’ after the 

12 semicolon at the end. 

13 (9) In section 109(c)(2)(A)(i), strike ‘‘(12 

14 U.S.C. 4703(16))’’. 

15 (10) In section 120(h), strike ‘‘the Act ap16 proved July 30, 1947 (6 U.S.C., secs. 6–13),’’ and 

17 insert ‘‘chapter 93 of title 31, United States Code,’’. 

18 (11) In section 201(b)(5), strike ‘‘section 116 

19 of’’. 

20 (12) In section 202(h)(3), strike ‘‘section 

21 207(c)(1)’’ and insert ‘‘section 207(k)(1)’’. 

22 (13) In section 204(b), strike ‘‘such others pow23 ers’’ and insert ‘‘such other powers’’. 

24 (14) In section 206(e)(3)(D), strike ‘‘and’’ after 

25 the semicolon at the end. 


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1 (15) In section 206(f)(1), strike ‘‘subsection 

2 (e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. 

3 (16) In section 206(g)(7)(D), strike ‘‘and sub4 section (1)’’. 

5 (17) In section 206(t)(2)(B), insert ‘‘regula6 tions’’ after ‘‘as defined in’’. 

7 (18) In section 206(t)(2)(C), strike ‘‘material 

8 affect’’ and insert ‘‘material effect’’. 

9 (19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ 

10 after the semicolon at the end. 

11 (20) In section 206A(a)(2)(A), strike ‘‘regulator 

12 agency’’ and insert ‘‘regulatory agency’’. 

13 (21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ 

14 after the semicolon at the end. 

15 (22) In the heading for subparagraph (A) of 

16 section 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. 

17 (23) In section 207(f)(3)(A), strike ‘‘category 

18 or claimants’’ and insert ‘‘category of claimants’’. 

19 (24) In section 209(a)(8), strike the period at 

20 the end and insert a semicolon. 

21 (25) In section 216(n), insert ‘‘any action’’ be22 fore ‘‘that is required’’. 

23 (26) In section 304(b)(3), strike ‘‘the affairs or 

24 such credit union’’ and insert ‘‘the affairs of such 

25 credit union’’. 


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1 (27) In section 310, strike ‘‘section 102(e)’’ and 

2 insert ‘‘section 102(d)’’. 

3 SEC. 727. REPEAL OF OBSOLETE PROVISIONS OF THE BANK 

4 HOLDING COMPANY ACT OF 1956. 

5 (a) IN GENERAL.—Section 2 of the Bank Holding 

6 Company Act of 1956 (12 U.S.C. 1841) is amended— 

7 (1) in subsection (c)(2), by striking subpara8 graphs (I) and (J); and 

9 (2) by striking subsection (m) and inserting the 

10 following: 

11 ‘‘(m) [Repealed]’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

13 Paragraphs (1) and (2) of section 4(h) of the Bank Hold14 ing Company Act of 1956 (12 U.S.C. 1843(h)) are each 

15 amended by striking ‘‘(G), (H), (I), or (J) of section 

16 2(c)(2)’’ and inserting ‘‘(G), or (H) of section 2(c)(2)’’. 

17 SEC. 728. DEVELOPMENT OF MODEL PRIVACY FORM. 

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

19 U.S.C. 6803), as amended by section 609, is amended by 

20 adding at the end the following: 

21 ‘‘(e) MODEL FORMS.— 

22 ‘‘(1) IN GENERAL.—The agencies referred to in 

23 section 504(a)(1) shall jointly develop a model form 

24 which may be used, at the option of the financial inVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 stitution, for the provision of disclosures under this 

2 section. 

3 ‘‘(2) FORMAT.—A model form developed under 

4 paragraph (1) shall— 

5 ‘‘(A) be comprehensible to consumers, with 

6 a clear format and design; 

7 ‘‘(B) provide for clear and conspicuous dis8 closures; 

9 ‘‘(C) enable consumers easily to identify 

10 the sharing practices of a financial institution 

11 and to compare privacy practices among finan12 cial institutions; and 

13 ‘‘(D) be succinct, and use an easily read14 able type font. 

15 ‘‘(3) TIMING.—A model form required to be de16 veloped by this subsection shall be issued in pro17 posed form for public comment not later than 180 

18 days after the date of enactment of this subsection. 

19 ‘‘(4) SAFE HARBOR.—Any financial institution 

20 that elects to provide the model form developed by 

21 the agencies under this subsection shall be deemed 

22 to be in compliance with the disclosures required 

23 under this section.’’. 


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1 TITLE VIII—FAIR DEBT COLLEC2 TION PRACTICES ACT AMEND3 MENTS 

4 SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCE5 MENT PROGRAMS. 

6 (a) IN GENERAL.—The Fair Debt Collection Prac7 tices Act (15 U.S.C. 1692 et seq.) is amended— 

8 (1) by redesignating section 818 as section 819; 

9 and 

10 (2) by inserting after section 817 the following: 

11 ‘‘§ 818. Exception for certain bad check enforcement 

12 programs operated by private entities 

13 ‘‘(a) IN GENERAL.— 

14 ‘‘(1) TREATMENT OF CERTAIN PRIVATE ENTI15 TIES.—Subject to paragraph (2), a private entity 

16 shall be excluded from the definition of a debt col17 lector, pursuant to the exception provided in section 

18 803(6), with respect to the operation by the entity 

19 of a program described in paragraph (2)(A) under 

20 a contract described in paragraph (2)(B). 

21 ‘‘(2) CONDITIONS OF APPLICABILITY.—Para22 graph (1) shall apply if— 

23 ‘‘(A) a State or district attorney estab24 lishes, within the jurisdiction of such State or 

25 district attorney and with respect to alleged bad 


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1 check violations that do not involve a check de2 scribed in subsection (b), a pretrial diversion 

3 program for alleged bad check offenders who 

4 agree to participate voluntarily in such program 

5 to avoid criminal prosecution; 

6 ‘‘(B) a private entity, that is subject to an 

7 administrative support services contract with a 

8 State or district attorney and operates under 

9 the direction, supervision, and control of such 

10 State or district attorney, operates the pretrial 

11 diversion program described in subparagraph 

12 (A); and 

13 ‘‘(C) in the course of performing duties 

14 delegated to it by a State or district attorney 

15 under the contract, the private entity referred 

16 to in subparagraph (B)— 

17 ‘‘(i) complies with the penal laws of 

18 the State; 

19 ‘‘(ii) conforms with the terms of the 

20 contract and directives of the State or dis21 trict attorney; 

22 ‘‘(iii) does not exercise independent 

23 prosecutorial discretion; 

24 ‘‘(iv) contacts any alleged offender re25 ferred to in subparagraph (A) for purposes 


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1 of participating in a program referred to in 

2 such paragraph— 

3 ‘‘(I) only as a result of any deter4 mination by the State or district at5 torney that probable cause of a bad 

6 check violation under State penal law 

7 exists, and that contact with the al8 leged offender for purposes of partici9 pation in the program is appropriate; 

10 and 

11 ‘‘(II) the alleged offender has 

12 failed to pay the bad check after de13 mand for payment, pursuant to State 

14 law, is made for payment of the check 

15 amount; 

16 ‘‘(v) includes as part of an initial writ17 ten communication with an alleged of18 fender a clear and conspicuous statement 

19 that— 

20 ‘‘(I) the alleged offender may dis21 pute the validity of any alleged bad 

22 check violation; 

23 ‘‘(II) where the alleged offender 

24 knows, or has reasonable cause to be25 lieve, that the alleged bad check violaVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 tion is the result of theft or forgery of 

2 the check, identity theft, or other 

3 fraud that is not the result of the con4 duct of the alleged offender, the al5 leged offender may file a crime report 

6 with the appropriate law enforcement 

7 agency; and 

8 ‘‘(III) if the alleged offender noti9 fies the private entity or the district 

10 attorney in writing, not later than 30 

11 days after being contacted for the 

12 first time pursuant to clause (iv), that 

13 there is a dispute pursuant to this 

14 subsection, before further restitution 

15 efforts are pursued, the district attor16 ney or an employee of the district at17 torney authorized to make such a de18 termination makes a determination 

19 that there is probable cause to believe 

20 that a crime has been committed; and 

21 ‘‘(vi) charges only fees in connection 

22 with services under the contract that have 

23 been authorized by the contract with the 

24 State or district attorney. 


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1 ‘‘(b) CERTAIN CHECKS EXCLUDED.—A check is de2 scribed in this subsection if the check involves, or is subse3 quently found to involve— 

4 ‘‘(1) a postdated check presented in connection 

5 with a payday loan, or other similar transaction, 

6 where the payee of the check knew that the issuer 

7 had insufficient funds at the time the check was 

8 made, drawn, or delivered; 

9 ‘‘(2) a stop payment order where the issuer 

10 acted in good faith and with reasonable cause in 

11 stopping payment on the check; 

12 ‘‘(3) a check dishonored because of an adjust13 ment to the issuer’s account by the financial institu14 tion holding such account without providing notice 

15 to the person at the time the check was made, 

16 drawn, or delivered; 

17 ‘‘(4) a check for partial payment of a debt 

18 where the payee had previously accepted partial pay19 ment for such debt; 

20 ‘‘(5) a check issued by a person who was not 

21 competent, or was not of legal age, to enter into a 

22 legal contractual obligation at the time the check 

23 was made, drawn, or delivered; or 

24 ‘‘(6) a check issued to pay an obligation arising 

25 from a transaction that was illegal in the jurisdiction 


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1 of the State or district attorney at the time the 

2 check was made, drawn, or delivered. 

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

4 following definitions shall apply: 

5 ‘‘(1) STATE OR DISTRICT ATTORNEY.—The 

6 term ‘State or district attorney’ means the chief 

7 elected or appointed prosecuting attorney in a dis8 trict, county (as defined in section 2 of title 1, 

9 United States Code), municipality, or comparable ju10 risdiction, including State attorneys general who act 

11 as chief elected or appointed prosecuting attorneys 

12 in a district, county (as so defined), municipality or 

13 comparable jurisdiction, who may be referred to by 

14 a variety of titles such as district attorneys, pros15 ecuting attorneys, commonwealth’s attorneys, solici16 tors, county attorneys, and state’s attorneys, and 

17 who are responsible for the prosecution of State 

18 crimes and violations of jurisdiction-specific local or19 dinances. 

20 ‘‘(2) CHECK.—The term ‘check’ has the same 

21 meaning as in section 3(6) of the Check Clearing for 

22 the 21st Century Act. 

23 ‘‘(3) BAD CHECK VIOLATION.—The term ‘bad 

24 check violation’ means a violation of the applicable 


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1 State criminal law relating to the writing of dishon2 ored checks.’’. 

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

4 for the Fair Debt Collection Practices Act (15 U.S.C. 

5 1692 et seq.) is amended— 

6 (1) by redesignating the item relating to section 

7 818 as section 819; and 

8 (2) by inserting after the item relating to sec9 tion 817 the following new item: 

‘‘818. Exception for certain bad check enforcement programs operated by private entities.’’. 

10 TITLE IX—CASH MANAGEMENT 

11 MODERNIZATION 

12 SEC. 901. COLLATERAL MODERNIZATION. 

13 (a) IN GENERAL.—Section 9301(2) of title 31, 

14 United States Code, is amended to read as follows: 

15 ‘‘(2) ‘eligible obligation’ means any security 

16 designated as acceptable in lieu of a surety bond by 

17 the Secretary of the Treasury.’’. 

18 (b) USE OF ELIGIBLE OBLIGATIONS INSTEAD OF

19 SURETY BONDS.—Section 9303(a)(2) of title 31, United 

20 States Code, is amended to read as follows: 

21 ‘‘(2) as determined by the Secretary of the 

22 Treasury, have a market value that is equal to or 

23 greater than the amount of the required surety 

24 bond; and’’. 


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1 (c) TECHNICAL AMENDMENTS.—Section 9303 of title 

2 31, United States Code, is amended— 

3 (1) in the section heading, by striking ‘‘Gov4 ernment obligations’’ and inserting ‘‘eligible 

5 obligations’’; 

6 (2) in subsection (f), by striking ‘‘Government 

7 obligations’’ and inserting ‘‘eligible obligations’’; 

8 (3) by striking ‘‘a Government obligation’’ each 

9 place that term appears and inserting ‘‘an eligible 

10 obligation’’; and 

11 (4) by striking ‘‘Government obligation’’ each 

12 place that term appears and inserting ‘‘eligible obli13 gation’’. 

14 TITLE X—STUDIES AND 

15 REPORTS 

16 SEC. 1001. STUDY AND REPORT BY THE COMPTROLLER 

17 GENERAL ON THE CURRENCY TRANSACTION 

18 REPORT FILING SYSTEM. 

19 (a) IN GENERAL.—The Comptroller General of the 

20 United States shall conduct a study on the volume of cur21 rency transaction reports filed with the Secretary of the 

22 Treasury under section 5313(a) of title 31, United States 

23 Code. 

24 (b) PURPOSE.—The purpose of the study required 

25 under subsection (a) shall be— 


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1 (1) to evaluate, on the basis of actual filing 

2 data, patterns of currency transaction reports filed 

3 by depository institutions of all sizes and locations; 

4 and 

5 (2) to identify whether and the extent to which 

6 the filing rules for currency transaction reports de7 scribed in section 5313(a) of title 31, United States 

8 Code— 

9 (A) are burdensome; and 

10 (B) can or should be modified to reduce 

11 such burdens without harming the usefulness of 

12 such filing rules to Federal, State, and local 

13 anti-terrorism, law enforcement, and regulatory 

14 operations. 

15 (c) PERIOD COVERED.—The study required under 

16 subsection (a) shall cover the period beginning at least 3 

17 calendar years prior to the date of enactment of this sec18 tion. 

19 (d) CONTENT.—The study required under subsection 

20 (a) shall include a detailed evaluation of— 

21 (1) the extent to which depository institutions 

22 are availing themselves of the exemption system for 

23 the filing of currency transaction reports set forth in 

24 section 103.22(d) of title 31, Code of Federal Regu25 lations, as in effect during the study period (in this 


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1 section referred to as the ‘‘exemption system’’), in2 cluding specifically, for the study period— 

3 (A) the number of currency transaction re4 ports filed (out of the total annual numbers) in5 volving companies that are listed on the New 

6 York Stock Exchange or the NASDAQ Na7 tional Market; 

8 (B) the number of currency transaction re9 ports filed by the 100 largest depository institu10 tions in the United States by asset size, and 

11 thereafter in tiers of 100, by asset size; 

12 (C) the number of currency transaction re13 ports filed by the 200 smallest depository insti14 tutions in the United States, including the 

15 number of such currency transaction reports in16 volving companies listed on the New York Stock 

17 Exchange or the NASDAQ National Market; 

18 and 

19 (D) the number of currency transaction re20 ports that would have been filed during the fil21 ing period if the exemption system had been 

22 used by all depository institutions in the United 

23 States; 


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1 (2) what types of depository institutions are 

2 using the exemption system, and the extent to which 

3 such exemption system is used; 

4 (3) difficulties that limit the willingness or abil5 ity of depository institutions to reduce their currency 

6 transaction reports reporting burden by making use 

7 of the exemption system, including considerations of 

8 cost, especially in the case of small depository insti9 tutions; 

10 (4) the extent to which bank examination dif11 ficulties have limited the use of the exemption sys12 tem, especially with respect to— 

13 (A) the exemption of privately-held compa14 nies permitted under such exemption system; 

15 and 

16 (B) whether, on a sample basis, the reac17 tion of bank examiners to implementation of 

18 such exemption system is justified or inhibits 

19 use of such exemption system without an offset20 ting compliance benefit; 

21 (5) ways to improve the use of the exemption 

22 system by depository institutions, including making 

23 such exemption system mandatory in order to reduce 

24 the volume of currency transaction reports unneces25 sarily filed; and 


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1 (6) the usefulness of currency transaction re2 ports filed to law enforcement agencies, taking into 

3 account— 

4 (A) advances in information technology; 

5 (B) the impact, including possible loss of 

6 investigative data, that various changes in the 

7 exemption system would have on the usefulness 

8 of such currency transaction reports; and 

9 (C) changes that could be made to the ex10 emption system without affecting the usefulness 

11 of currency transaction reports. 

12 (e) ASSISTANCE.—The Secretary of the Treasury 

13 shall provide such information processing and other assist14 ance, including from the Commissioner of the Internal 

15 Revenue Service and the Director of the Financial Crimes 

16 Enforcement Network, to the Comptroller General in ana17 lyzing currency transaction report filings for the study pe18 riod described in subsection (c), as is necessary to provide 

19 the information required by subsection (a). 

20 (f) VIEWS.—The study required under subsection (a) 

21 shall, if appropriate, include a discussion of the views of 

22 a representative sample of Federal, State, and local law 

23 enforcement and regulatory officials and officials of depos24 itory institutions of all sizes. 


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1 (g) RECOMMENDATIONS.—The study required under 

2 subsection (a) shall, if appropriate, include recommenda3 tions for changes to the exemption system that would re4 flect a reduction in unnecessary cost to depository institu5 tions, assuming reasonably full implementation of such ex6 emption system, without reducing the usefulness of the 

7 currency transaction report filing system to anti-ter8 rorism, law enforcement, and regulatory operations. 

9 (h) REPORT.—Not later than 15 months after the 

10 date of enactment of this section, the Comptroller General 

11 shall submit a report on the study required under sub12 section (a) to the Committee on Banking, Housing, and 

13 Urban Affairs of the Senate and the Committee on Finan14 cial Services of the House of Representatives. 

15 SEC. 1002. STUDY AND REPORT ON INSTITUTION DIVERSITY 

16 AND CONSOLIDATION. 

17 (a) STUDY.—The Comptroller General of the United 

18 States shall conduct a study regarding— 

19 (1) the vast diversity in the size and complexity 

20 of institutions in the banking and financial services 

21 sector, including the differences in capital, market 

22 share, geographical limitations, product offerings, 

23 and general activities; 

24 (2) the differences in powers among the deposi25 tory institution charters, including— 


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1 (A) identification of the historical trends in 

2 the evolution of depository institution charters; 

3 (B) an analysis of the impact of charter 

4 differences to the overall safety and soundness 

5 of the banking industry, and the effectiveness of 

6 the applicable depository institution regulator; 

7 and 

8 (C) an analysis of the impact that the 

9 availability of options for depository institution 

10 charters on the development of the banking in11 dustry; 

12 (3) the impact that differences of size and over13 all complexity among financial institutions makes 

14 with respect to regulatory oversight, efficiency, safe15 ty and soundness, and charter options for financial 

16 institutions; and 

17 (4) the aggregate cost and breakdown associ18 ated with regulatory compliance for banks, savings 

19 associations, credit unions, or any other financial in20 stitution, including potential disproportionate impact 

21 that the cost of compliance may pose on smaller in22 stitutions, given the percentage of personnel that the 

23 institution must dedicate solely to compliance. 

24 (b) CONSIDERATIONS.—In conducting the study 

25 under subsection (a), the Comptroller General shall conVerDate Aug 31 2005 05:56 May 19, 2006 Jkt 049200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\S2856.PCS S2856

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1 sider the efficacy and efficiency of the consolidation of fi2 nancial regulators, as well as charter simplification and 

3 homogenization. 

4 (c) REPORT.—Not later than 1 year after the date 

5 of enactment of this Act, the Comptroller General of the 

6 United States shall submit a report to the Committee on 

7 Banking, Housing, and Urban Affairs of the Senate and 

8 the Committee on Financial Services of the House of Rep9 resentatives on the results of the study required by this 

10 section. 


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Calendar No. 437 

109TH CONGRESS 

2D SESSION S. 2856 

[Report No. 109

–256] 

A BILL 

To provide regulatory relief and improve producother purposes. tivity for insured depository institutions, and for 

MAY 18, 2006 

Read twice and placed on the calendar 


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