In the House of Representatives, U. S.,

September 27, 2006.

Resolved, That the bill from the Senate (S. 2856) entitled ‘‘An Act to provide regulatory relief and improve productivity for insured depository institutions, and for other purposes’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘Fi3 nancial Services Regulatory Relief Act of 2006’’. 

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

5 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—BROKER RELIEF 

Sec. 101. Joint 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. 

Sec. 203. Effective date.

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. 
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Sec. 305. Enhancing the authority for banks to make community development investments. 

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. 

Sec. 505. Amendments relating to nonfederally insured credit unions.

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 

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. 
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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. 

Sec. 802. Other amendments.

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.

1 TITLE I—BROKER RELIEF 

2 SEC. 101. JOINT RULEMAKING REQUIRED FOR REVISED 

3 DEFINITION OF BROKER IN THE SECURITIES 

4 EXCHANGE ACT OF 1934. 

5 (a) FINAL RULES REQUIRED.—
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1 (1) AMENDMENT TO SECURITIES EXCHANGE

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

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

4 at the end the following: 

5 ‘‘(F) JOINT RULEMAKING REQUIRED.—The 

6 Commission and the Board of Governors of the 

7 Federal Reserve System shall jointly adopt a sin8 gle set of rules or regulations to implement the 

9 exceptions in subparagraph (B).’’. 

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

11 date of the enactment of this Act, the Securities and 

12 Exchange Commission (in this section referred to as 

13 the ‘‘Commission’’) and the Board of Governors of the 

14 Federal Reserve System (hereafter in this section re15 ferred to as the ‘‘Board’’) shall jointly issue a pro16 posed single set of rules or regulations to define the 

17 term ‘‘broker’’ in accordance with section 3(a)(4) of 

18 the Securities Exchange Act of 1934, as amended by 

19 this subsection. 

20 (3) RULEMAKING SUPERSEDES PREVIOUS RULE21 MAKING.—A final single set of rules or regulations 

22 jointly adopted in accordance with this section shall 

23 supersede any other proposed or final rule issued by 

24 the Commission on or after the date of enactment of 

25 section 201 of the Gramm-Leach-Bliley Act with re-
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1 gard to the exceptions to the definition of a broker 

2 under section 3(a)(4)(B) of the Securities Exchange 

3 Act of 1934. No such other rule, whether or not issued 

4 in final form, shall have any force or effect on or after 

5 that date of enactment. 

6 (b) CONSULTATION.—Prior to jointly adopting the sin7 gle set of final rules or regulations required by this section, 

8 the Commission and the Board shall consult with and seek 

9 the concurrence of the Federal banking agencies concerning 

10 the content of such rulemaking in implementing section 

11 3(a)(4)(B) of the Securities Exchange Act of 1934, as 

12 amended by this section and section 201 of the Gramm13 Leach-Bliley Act.

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

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

16 Comptroller of the Currency, the Office of Thrift Super17 vision, and the Federal Deposit Insurance Corporation. 

18 TITLE II—MONETARY POLICY 

19 PROVISIONS 

20 SEC. 201. AUTHORIZATION FOR THE FEDERAL RESERVE TO 

21 PAY INTEREST ON RESERVES. 

22 (a) IN GENERAL.—Section 19(b) of the Federal Re23 serve Act (12 U.S.C. 461(b)) is amended by adding at the 

24 end the following: 

25 ‘‘(12) EARNINGS ON BALANCES.—
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1 ‘‘(A) IN GENERAL.—Balances maintained 

2 at a Federal Reserve bank by or on behalf of a 

3 depository institution may receive earnings to be 

4 paid by the Federal Reserve bank at least once 

5 each calendar quarter, at a rate or rates not to 

6 exceed the general level of short-term interest 

7 rates. 

8 ‘‘(B) REGULATIONS RELATING TO PAY9 MENTS AND DISTRIBUTIONS.—The Board may 

10 prescribe regulations concerning—

11 ‘‘(i) the payment of earnings in ac12 cordance with this paragraph; 

13 ‘‘(ii) the distribution of such earnings 

14 to the depository institutions which main15 tain balances at such banks, or on whose be16 half such balances are maintained; and 

17 ‘‘(iii) the responsibilities of depository 

18 institutions, Federal Home Loan Banks, 

19 and the National Credit Union Administra20 tion Central Liquidity Facility with respect 

21 to the crediting and distribution of earnings 

22 attributable to balances maintained, in ac23 cordance with subsection (c)(1)(A), in a 

24 Federal Reserve bank by any such entity on 

25 behalf of depository institutions. 
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1 ‘‘(C) DEPOSITORY INSTITUTIONS DE2 FINED.—For purposes of this paragraph, the 

3 term ‘depository institution’, in addition to the 

4 institutions described in paragraph (1)(A), in5 cludes any trust company, corporation organized 

6 under section 25A or having an agreement with 

7 the Board under section 25, or any branch or 

8 agency of a foreign bank (as defined in section 

9 1(b) of the International Banking Act of 1978).’’. 

10 (b) CONFORMING AMENDMENT.—Section 19 of the Fed11 eral Reserve Act (12 U.S.C. 461) is amended—

12 (1) in subsection (b)(4)—

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

14 (B) by redesignating subparagraphs (D) 

15 and (E) as subparagraphs (C) and (D), respec16 tively; and 

17 (2) in subsection (c)(1)(A), by striking ‘‘sub18 section (b)(4)(C)’’ and inserting ‘‘subsection (b)’’. 

19 SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RE20 SERVE BOARD TO ESTABLISH RESERVE RE21 QUIREMENTS. 

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

23 U.S.C. 461(b)(2)(A)) is amended—
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1 (1) in clause (i), by striking ‘‘the ratio of 3 per 

2 centum’’ and inserting ‘‘a ratio of not greater than 3 

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

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

5 8 per centum,’’ and inserting ‘‘(and which may be 

6 zero),’’. 

7 SEC. 203. EFFECTIVE DATE. 

8 The amendments made by this title shall take effect 

9 October 1, 2011. 

10 TITLE III—NATIONAL BANK 

11 PROVISIONS 

12 SEC. 301. VOTING IN SHAREHOLDER ELECTIONS. 

13 Section 5144 of the Revised Statutes of the United 

14 States (12 U.S.C. 61) is amended—

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

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

17 national bank, to cumulate’’; and 

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

19 equal’’. 

20 SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NA21 TIONAL BANKS. 

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

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

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

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

5 judge to be expedient. 

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

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

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

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

11 2 years, minus the sum of any transfers required by the 

12 Comptroller of the Currency and any transfers required to 

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

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

16 amount.’’. 

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

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

19 United States is amended by striking the item relating to 

20 section 5199 and inserting the following:

‘‘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 sen6 tence. 

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 AUTHORIZED.—

17 As part of its capital reduction plan approved in accord18 ance with subsection (a), and with the affirmative vote of 

19 shareholders owning at least two thirds of the shares of each 

20 class of its stock outstanding (each voting as a class), a na21 tional banking association may distribute cash or other as22 sets to its shareholders.’’. 
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1 SEC. 305. ENHANCING THE AUTHORITY FOR BANKS TO 

2 MAKE COMMUNITY DEVELOPMENT INVEST3 MENTS. 

4 (a) NATIONAL BANKS.—The paragraph designated as 

5 the ‘‘Eleventh.’’ of section 5136 of the Revised Statutes of 

6 the United States (12 U.S.C. 24) is amended to read as 

7 follows: 

8 ‘‘Eleventh. To make investments directly or indirectly, 

9 each of which promotes the public welfare by benefiting pri10 marily low- and moderate-income communities or families 

11 (such as by providing housing, services, or jobs). An associa12 tion shall not make any such investment if the investment 

13 would expose the association to unlimited liability. The 

14 Comptroller of the Currency shall limit an association’s in15 vestments in any 1 project and an association’s aggregate 

16 investments under this paragraph. An association’s aggre17 gate investments under this paragraph shall not exceed an 

18 amount equal to the sum of 5 percent of the association’s 

19 capital stock actually paid in and unimpaired and 5 per20 cent of the association’s unimpaired surplus fund, unless 

21 the Comptroller determines by order that the higher amount 

22 will pose no significant risk to the affected deposit insur23 ance fund, and the association is adequately capitalized. 

24 In no case shall an association’s aggregate investments 

25 under this paragraph exceed an amount equal to the sum 

26 of 15 percent of the association’s capital stock actually paid 
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1 in and unimpaired and 15 percent of the association’s 

2 unimpaired surplus fund. The foregoing standards and lim3 itations apply to investments under this paragraph made 

4 by a national bank directly and by its subsidiaries.’’. 

5 (b) CONFORMING AMENDMENTS FOR STATE MEMBER

6 BANKS.—The 23rd undesignated paragraph of section 9 of 

7 the Federal Reserve Act (12 U.S.C. 338a) is amended to 

8 read as follows: 

9 ‘‘(23) A State member bank may make invest10 ments directly or indirectly, each of which promotes 

11 the public welfare by benefiting primarily low- and 

12 moderate-income communities or families (such as by 

13 providing housing, services, or jobs), to the extent per14 missible under State law. A State member bank shall 

15 not make any such investment if the investment 

16 would expose the State member bank to unlimited li17 ability. The Board shall limit a State member bank’s 

18 investment in any 1 project and a State member 

19 bank’s aggregate investments under this paragraph. 

20 The aggregate amount of investments of any State 

21 member bank under this paragraph may not exceed 

22 an amount equal to the sum of 5 percent of the State 

23 member bank’s capital stock actually paid in and 

24 unimpaired and 5 percent of the State member bank’s 

25 unimpaired surplus, unless the Board determines, by 
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1 order, that a higher amount will pose no significant 

2 risk to the affected deposit insurance fund; and the 

3 State member bank is adequately capitalized. In no 

4 case shall the aggregate amount of investments of any 

5 State member bank under this paragraph exceed an 

6 amount equal to the sum of 15 percent of the State 

7 member bank’s capital stock actually paid in and 

8 unimpaired and 15 percent of the State member 

9 bank’s unimpaired surplus. The foregoing standards 

10 and limitations apply to investments under this 

11 paragraph made by a State member bank directly 

12 and by its subsidiaries.’’. 

13 TITLE IV—SAVINGS 

14 ASSOCIATION PROVISIONS 

15 SEC. 401. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE 

16 SECURITIES EXCHANGE ACT OF 1934 AND THE 

17 INVESTMENT ADVISERS ACT OF 1940. 

18 (a) SECURITIES EXCHANGE ACT OF 1934.—

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

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

21 78c(a)(6)) is amended—

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

23 a Federal savings association, as defined in sec24 tion 2(5) of the Home Owners’ Loan Act’’ after 
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1 ‘‘a banking institution organized under the laws 

2 of the United States’’; and 

3 (B) in subparagraph (C)—

4 (i) by inserting ‘‘or savings associa5 tion, as defined in section 2(4) of the Home 

6 Owners’ Loan Act’’ after ‘‘banking institu7 tion’’; and 

8 (ii) by inserting ‘‘or savings associa9 tions’’ after ‘‘having supervision over 

10 banks’’. 

11 (2) INCLUSION OF OTS UNDER THE DEFINITION

12 OF APPROPRIATE REGULATORY AGENCY FOR CERTAIN

13 PURPOSES.—Section 3(a)(34) of the Securities Ex14 change Act of 1934 (15 U.S.C. 78c(a)(34)) is amend15 ed—

16 (A) in subparagraph (A)—

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 the 

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

5 1813(b))), the deposits of which are insured 

6 by the Federal Deposit Insurance Corpora7 tion, a subsidiary or a department or divi8 sion of any such savings association, or a 

9 savings and loan holding company; and’’; 

10 (B) in subparagraph (B)—

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

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

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

14 at the end; 

15 (iii) by redesignating clause (iv) as 

16 clause (v); and 

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

18 following: 

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

20 Thrift Supervision, in the case of a savings 

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

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

23 1813(b))), the deposits of which are insured 

24 by the Federal Deposit Insurance Corpora25 tion, or a subsidiary of any such savings 
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1 association, or a savings and loan holding 

2 company; and’’; 

3 (C) in subparagraph (C)—

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 the 

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

16 1813(b))), the deposits of which are insured 

17 by the Federal Deposit Insurance Corpora18 tion, a savings and loan holding company, 

19 or a subsidiary of a savings and loan hold20 ing company when the appropriate regu21 latory agency for such clearing agency is 

22 not the Commission; and’’; 

23 (D) in subparagraph (D)—

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

25 the end; 
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1 (ii) by redesignating clause (iii) as 

2 clause (iv); and 

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

4 following: 

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

6 Thrift Supervision, in the case of a savings 

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

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

9 1813(b))) the deposits of which are insured 

10 by the Federal Deposit Insurance Corpora11 tion; and’’; 

12 (E) in subparagraph (F)—

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

14 and (iv) as clauses (iii), (iv), and (v), re15 spectively; and 

16 (ii) by inserting after clause (i) the fol17 lowing: 

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

19 Supervision, in the case of a savings asso20 ciation (as defined in section 3(b) of the 

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

22 1813(b))), the deposits of which are insured 

23 by the Federal Deposit Insurance Corpora24 tion; and’’; 
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1 (F) by moving subparagraph (H) and in2 serting such subparagraph immediately after 

3 subparagraph (G); and 

4 (G) by adding at the end of the undesig5 nated matter at the end the following: ‘‘As used 

6 in this paragraph, the term ‘savings and loan 

7 holding company’ has the same meaning as in 

8 section 10(a) of the Home Owners’ Loan Act (12 

9 U.S.C. 1467a(a)).’’. 

10 (3) CONFORMING EXEMPTION TO REPORTING RE11 QUIREMENT.—Section 23(b)(1) of the Securities Ex12 change Act of 1934 (15 U.S.C. 78w(b)(1)) is amended 

13 by inserting ‘‘other than the Office of Thrift Super14 vision,’’ before ‘‘shall each’’. 

15 (b) INVESTMENT ADVISERS ACT OF 1940.—

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

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

18 2(a)(2)) is amended—

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

20 a Federal savings association, as defined in sec21 tion 2(5) of the Home Owners’ Loan Act’’ after 

22 ‘‘a banking institution organized under the laws 

23 of the United States’’; and 

24 (B) in subparagraph (C)—
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1 (i) by inserting ‘‘, savings association, 

2 as defined in section 2(4) of the Home Own3 ers’ Loan Act,’’ after ‘‘banking institution’’; 

4 and 

5 (ii) by inserting ‘‘or savings associa6 tions’’ after ‘‘having supervision over 

7 banks’’. 

8 (2) CONFORMING AMENDMENTS.—Section 210A 

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

10 80b–10a) is amended in each of subsections 

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

12 ‘‘bank holding company’’ each place that term ap13 pears and inserting ‘‘bank holding company or sav14 ings and loan holding company’’. 

15 (c) CONFORMING AMENDMENT TO THE INVESTMENT

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

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

18 by inserting after ‘‘1956)’’ the following: ‘‘or any one sav19 ings and loan holding company, together with its affiliates 

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

21 of the Home Owners’ Loan Act),’’. 

22 SEC. 402. REPEAL OF OVERLAPPING RULES GOVERNING 

23 PURCHASED MORTGAGE SERVICING RIGHTS. 

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

25 1464(t)) is amended—
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1 (1) by striking paragraph (4) and inserting the 

2 following: 

3 ‘‘(4) [Repealed].’’; and 

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

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

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

7 SEC. 403. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 

8 ASSOCIATIONS FOR FEDERAL COURT JURIS9 DICTION. 

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

11 1464) is amended by adding at the end the following: 

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

13 whether a Federal court has diversity jurisdiction over a 

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

15 Federal savings association shall be considered to be a cit16 izen only of the State in which such savings association 

17 has its home office.’’. 

18 SEC. 404. REPEAL OF LIMITATION ON LOANS TO ONE BOR19 ROWER. 

20 Section 5(u)(2)(A) of the Home Owners’ Loan Act (12 

21 U.S.C. 1464(u)(2)(A)) is amended—

22 (1) in clause (i)—

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

24 ‘‘For any’’; and 
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1 (B) by striking ‘‘; or’’ and inserting a pe2 riod; and 

3 (2) in clause (ii)—

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

5 inserting ‘‘To develop domestic’’; 

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

7 (C) by redesignating subclauses (II) through 

8 (V) as subclauses (I) through (IV), respectively.

9 TITLE V—CREDIT UNION 

10 PROVISIONS 

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

12 CREDIT UNIONS. 

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

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

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

16 union’’ and inserting ‘‘Notwithstanding any other 

17 provision of law, upon application by any credit 

18 union’’; 

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

20 and under the exclusive or concurrent jurisdiction of, 

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

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

23 (3) by inserting ‘‘lease land or’’ after ‘‘such offi24 cer or agency may in his or its discretion’’; and 
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1 (4) by inserting ‘‘or the facility built on the lease 

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

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

5 section 124 of the Federal Credit Union Act (12 U.S.C. 

6 1770) is amended by inserting ‘‘OR FEDERAL LAND’’ 

7 after ‘‘BUILDINGS’’. 

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

9 TERM OF FEDERAL CREDIT UNION LOANS TO 

10 15 YEARS. 

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

12 U.S.C. 1757(5)) is amended in the matter preceding sub13 paragraph (A), by striking ‘‘to make loans, the maturities 

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

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

16 years,’’. 

17 SEC. 503. CHECK CASHING AND MONEY TRANSFER SERV18 ICES OFFERED WITHIN THE FIELD OF MEM19 BERSHIP. 

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

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

22 ‘‘(12) in accordance with regulations prescribed 

23 by the Board—

24 ‘‘(A) to sell, to persons in the field of mem25 bership, negotiable checks (including travelers 
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1 checks), money orders, and other similar money 

2 transfer instruments (including international 

3 and domestic electronic fund transfers); and 

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

5 receive international and domestic electronic 

6 fund transfers for persons in the field of member7 ship for a fee;’’. 

8 SEC. 504. CLARIFICATION OF DEFINITION OF NET WORTH 

9 UNDER CERTAIN CIRCUMSTANCES FOR PUR10 POSES OF PROMPT CORRECTIVE ACTION. 

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

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

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

14 balance’’; and 

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

16 that were previously retained earnings of any other 

17 credit union with which the credit union has com18 bined’’ before the semicolon at the end. 

19 SEC. 505. AMENDMENTS RELATING TO NONFEDERALLY IN20 SURED CREDIT UNIONS. 

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

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

23 amended by adding at the end the following new paragraph: 

24 ‘‘(3) ENFORCEMENT BY APPROPRIATE STATE SU25 PERVISOR.—Any appropriate State supervisor of a 
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1 private deposit insurer, and any appropriate State 

2 supervisor of a depository institution which receives 

3 deposits that are insured by a private deposit insurer, 

4 may examine and enforce compliance with this sub5 section under the applicable regulatory authority of 

6 such supervisor.’’. 

7 (b) AMENDMENT RELATING TO DISCLOSURES

8 REQUIRED, PERIODIC STATEMENTS, AND ACCOUNT

9 RECORDS.—Section 43(b)(1) of the Federal Deposit 

10 Insurance Act (12 U.S.C. 1831t(b)(1)) is amended by 

11 striking ‘‘or similar instrument evidencing a deposit’’ 

12 and inserting ‘‘or share certificate.’’. 

13 (c) AMENDMENTS RELATING TO DISCLOSURES RE14 QUIRED, ADVERTISING, PREMISES.—Section 43(b)(2) of the 

15 Federal Deposit Insurance Act (12 U.S.C. 1831t(b)(2)) is 

16 amended to read as follows: 

17 ‘‘(2) ADVERTISING; PREMISES.—

18 ‘‘(A) IN GENERAL.—Include clearly and 

19 conspicuously in all advertising, except as pro20 vided in subparagraph (B); and at each station 

21 or window where deposits are normally received, 

22 its principal place of business and all its 

23 branches where it accepts deposits or opens ac24 counts (excluding automated teller machines or 

25 point of sale terminals), and on its main Inter-
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1 net page, a notice that the institution is not fed2 erally insured. 

3 ‘‘(B) EXCEPTIONS.—The following need not 

4 include a notice that the institution is not feder5 ally insured: 

6 ‘‘(i) Any sign, document, or other item 

7 that contains the name of the depository in8 stitution, its logo, or its contact informa9 tion, but only if the sign, document, or item 

10 does not include any information about the 

11 institution’s products or services or infor12 mation otherwise promoting the institution. 

13 ‘‘(ii) Small utilitarian items that do 

14 not mention deposit products or insurance 

15 if inclusion of the notice would be imprac16 tical.’’. 

17 (d) AMENDMENTS RELATING TO ACKNOWLEDG18 MENT OF DISCLOSURE.—Section 43(b)(3) of the Fed19 eral Deposit Insurance Act (12 U.S.C. 1831t(b)(3)) is 

20 amended to read as follows: 

21 ‘‘(3) ACKNOWLEDGMENT OF DISCLOSURE.—

22 ‘‘(A) NEW DEPOSITORS OBTAINED OTHER

23 THAN THROUGH A CONVERSION OR MERGER.—

24 With respect to any depositor who was not a de25 positor at the depository institution before the ef-
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1 fective date of the Financial Services Regulatory 

2 Relief Act of 2006, and who is not a depositor 

3 as described in subparagraph (B), receive any 

4 deposit for the account of such depositor only if 

5 the depositor has signed a written acknowledge6 ment that—

7 ‘‘(i) the institution is not federally in8 sured; and 

9 ‘‘(ii) if the institution fails, the Fed10 eral Government does not guarantee that the 

11 depositor will get back the depositor’s 

12 money. 

13 ‘‘(B) NEW DEPOSITORS OBTAINED

14 THROUGH A CONVERSION OR MERGER.—With re15 spect to a depositor at a federally insured deposi16 tory institution that converts to, or merges into, 

17 a depository institution lacking federal insur18 ance after the effective date of the Financial 

19 Services Regulatory Relief Act of 2006, receive 

20 any deposit for the account of such depositor 

21 only if—

22 ‘‘(i) the depositor has signed a written 

23 acknowledgement described in subparagraph 

24 (A); or 
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1 ‘‘(ii) the institution makes an attempt, 

2 as described in subparagraph (D) and sent 

3 by mail no later than 45 days after the ef4 fective date of the conversion or merger, to 

5 obtain the acknowledgment. 

6 ‘‘(C) CURRENT DEPOSITORS.—Receive any 

7 deposit after the effective date of the Financial 

8 Services Regulatory Relief Act of 2006 for the ac9 count of any depositor who was a depositor on 

10 that date only if—

11 ‘‘(i) the depositor has signed a written 

12 acknowledgement described in subparagraph 

13 (A); or 

14 ‘‘(ii) the institution has complied with 

15 the provisions of subparagraph (E) which 

16 are applicable as of the date of the deposit. 

17 ‘‘(D) ALTERNATIVE PROVISION OF NOTICE

18 TO NEW DEPOSITORS OBTAINED THROUGH A

19 CONVERSION OR MERGER.—

20 ‘‘(i) IN GENERAL.—Transmit to each 

21 depositor who has not signed a written ac22 knowledgement described in subparagraph 

23 (A)—

24 ‘‘(I) a conspicuous card con25 taining the information described in 
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1 clauses (i) and (ii) of subparagraph 

2 (A), and a line for the signature of the 

3 depositor; and 

4 ‘‘(II) accompanying materials re5 questing the depositor to sign the card, 

6 and return the signed card to the insti7 tution. 

8 ‘‘(E) ALTERNATIVE PROVISION OF NOTICE

9 TO CURRENT DEPOSITORS.—

10 ‘‘(i) IN GENERAL.—Transmit to each 

11 depositor who was a depositor before the ef12 fective date of the Financial Services Regu13 latory Relief Act of 2006, and has not 

14 signed a written acknowledgement described 

15 in subparagraph (A)—

16 ‘‘(I) a conspicuous card con17 taining the information described in 

18 clauses (i) and (ii) of subparagraph 

19 (A), and a line for the signature of the 

20 depositor; and 

21 ‘‘(II) accompanying materials re22 questing the depositor to sign the card, 

23 and return the signed card to the insti24 tution. 
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1 ‘‘(ii) MANNER AND TIMING OF NO2 TICE.—

3 ‘‘(I) FIRST NOTICE.—Make the 

4 transmission described in clause (i) via 

5 mail not later than three months after 

6 the effective date of the Financial Serv7 ices Regulatory Relief Act of 2006. 

8 ‘‘(II) SECOND NOTICE.—Make a 

9 second transmission described in clause 

10 (i) via mail not less than 30 days and 

11 not more than three months after a 

12 transmission to the depositor in ac13 cordance with subclause (I), if the in14 stitution has not, by the date of such 

15 mailing, received from the depositor a 

16 card referred to in clause (i) which has 

17 been signed by the depositor.’’. 

18 (e) AMENDMENTS RELATING TO MANNER AND CON19 TENT OF DISCLOSURE.—Section 43(c) of the Federal De20 posit Insurance Act (12 U.S.C. 1831t(c)) is amended to 

21 read as follows: 

22 ‘‘(c) MANNER AND CONTENT OF DISCLOSURE.—To en23 sure that current and prospective customers understand the 

24 risks involved in foregoing Federal deposit insurance, the 

25 Federal Trade Commission, by regulation or order, shall 
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1 prescribe the manner and content of disclosure required 

2 under this section, which shall be presented in such format 

3 and in such type size and manner as to be simple and easy 

4 to understand.’’. 

5 (f) REPEAL OF PROVISION PROHIBITING NONDEPOSI6 TORY INSTITUTIONS FROM ACCEPTING DEPOSITS.—Section 

7 43 of the Federal Deposit Insurance Act (12 U.S.C. 1831t) 

8 is amended—

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

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

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

12 (g) REPEAL OF FTC AUTHORITY TO ENFORCE INDE13 PENDENT AUDIT REQUIREMENT; CONCURRENT STATE EN14 FORCEMENT.—Subsection (f) (as so redesignated by sub15 section (e) of this section) of section 43 of the Federal De16 posit Insurance Act (12 U.S.C. 1831t) is amended to read 

17 as follows: 

18 ‘‘(f) ENFORCEMENT.—

19 ‘‘(1) LIMITED FTC ENFORCEMENT AUTHORITY.—

20 Compliance with the requirements of subsections (b), 

21 (c) and (e), and any regulation prescribed or order 

22 issued under any such subsection, shall be enforced 

23 under the Federal Trade Commission Act by the Fed24 eral Trade Commission. 
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1 ‘‘(2) BROAD STATE ENFORCEMENT AUTHOR2 ITY.—

3 ‘‘(A) IN GENERAL.—Subject to subpara4 graph (C), an appropriate State supervisor of a 

5 depository institution lacking Federal deposit in6 surance may examine and enforce compliance 

7 with the requirements of this section, and any 

8 regulation prescribed under this section. 

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

10 bringing any action to enforce compliance with 

11 this section, no provision of this section shall be 

12 construed as preventing an appropriate State su13 pervisor of a depository institution lacking Fed14 eral deposit insurance from exercising any pow15 ers conferred on such official by the laws of such 

16 State. 

17 ‘‘(C) LIMITATION ON STATE ACTION WHILE

18 FEDERAL ACTION PENDING.—If the Federal 

19 Trade Commission has instituted an enforcement 

20 action for a violation of this section, no appro21 priate State supervisor may, during the pend22 ency of such action, bring an action under this 

23 section against any defendant named in the com24 plaint of the Commission for any violation of 

25 this section that is alleged in that complaint.’’. 
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1 TITLE VI—DEPOSITORY 

2 INSTITUTION PROVISIONS 

3 SEC. 601. REPORTING REQUIREMENTS RELATING TO IN4 SIDER LENDING. 

5 (a) REPORTING REQUIREMENTS REGARDING LOANS

6 TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section 

7 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amend8 ed—

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

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

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

12 (b) REPORTING REQUIREMENTS REGARDING LOANS

13 FROM CORRESPONDENT BANKS TO EXECUTIVE OFFICERS

14 AND SHAREHOLDERS OF INSURED BANKS.—Section 

15 106(b)(2) of the Bank Holding Company Act Amendments 

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

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

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

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

20 SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIA21 TIONS IN BANK SERVICE COMPANIES AU22 THORIZED. 

23 (a) IN GENERAL.—Sections 2 and 3 of the Bank Serv24 ice Company Act (12 U.S.C. 1862, 1863) are each amended 
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1 by striking ‘‘insured bank’’ each place that term appears 

2 and inserting ‘‘insured depository institution’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

4 (1) BANK SERVICE COMPANY ACT DEFINITIONS.—

5 Section 1(b) of the Bank Service Company Act (12 

6 U.S.C. 1861(b)) is amended—

7 (A) in paragraph (4)—

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

9 term appears in connection with the term 

10 ‘insured depository institution’,’’ after 

11 ‘‘means’’; and 

12 (ii) by striking ‘‘Federal Home Loan 

13 Bank Board’’ and inserting ‘‘Director of the 

14 Office of Thrift Supervision’’; 

15 (B) by striking paragraph (5) and inserting 

16 the following: 

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

18 term ‘insured depository institution’ has the same 

19 meaning as in section 3(c) of the Federal Deposit In20 surance Act;’’; 

21 (C) by striking ‘‘and’’ at the end of para22 graph (7); 

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

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

25 (E) by adding at the end the following: 
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1 ‘‘(9) the terms ‘State depository institution’, 

2 ‘Federal depository institution’, ‘State savings asso3 ciation’ and ‘Federal savings association’ have the 

4 same meanings as in section 3 of the Federal Deposit 

5 Insurance Act.’’; 

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

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

8 each place that term appears and inserting ‘‘in9 sured depository institutions’’; and 

10 (G) in paragraph (8)—

11 (i) by striking ‘‘insured bank’’ and in12 serting ‘‘insured depository institution’’; 

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

14 place that term appears and inserting ‘‘in15 sured depository institutions’’; and 

16 (iii) by striking ‘‘the bank’s’’ and in17 serting ‘‘the depository institution’s’’. 

18 (2) AMOUNT OF INVESTMENT.—Section 2 of the 

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

20 amended by inserting ‘‘or savings associations, other 

21 than the limitation on the amount of investment by 

22 a Federal savings association contained in section 

23 5(c)(4)(B) of the Home Owners’ Loan Act’’ after ‘‘re24 lating to banks’’. 
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1 (3) LOCATION OF SERVICES.—Section 4 of the 

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

3 amended—

4 (A) in subsection (b), by inserting ‘‘as per5 missible under subsection (c), (d), or (e) or’’ after 

6 ‘‘Except’’; 

7 (B) in subsection (c), by inserting ‘‘or State 

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

9 place that term appears; 

10 (C) in subsection (d), by inserting ‘‘or Fed11 eral savings association’’ after ‘‘national bank’’ 

12 each place that term appears; 

13 (D) by striking subsection (e) and inserting 

14 the following: 

15 ‘‘(e) PERFORMANCE WHERE STATE BANK AND NA16 TIONAL BANK ARE SHAREHOLDERS OR MEMBERS.—A 

17 bank service company may perform—

18 ‘‘(1) only those services that each depository in19 stitution shareholder or member is otherwise author20 ized to perform under any applicable Federal or State 

21 law; and 

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

23 which each such shareholder or member is authorized 

24 to perform such services.’’; and 
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1 (E) in subsection (f), by inserting ‘‘or sav2 ings associations’’ after ‘‘location of banks’’. 

3 (4) PRIOR APPROVAL OF INVESTMENTS.—Section 

4 5 of the Bank Service Company Act (12 U.S.C. 1865) 

5 is amended—

6 (A) in subsection (a)—

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

9 and 

10 (ii) by striking ‘‘bank’s’’; and 

11 (iii) by inserting before the period ‘‘for 

12 the insured depository institution’’; 

13 (B) in subsection (b)—

14 (i) by striking ‘‘insured bank’’ and in15 serting ‘‘insured depository institution’’; 

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

17 after ‘‘performs any service’’; and 

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

19 after ‘‘perform any activity’’; and 

20 (C) in subsection (c)—

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

22 and inserting ‘‘any insured depository in23 stitution’’; and 
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1 (ii) by striking ‘‘capability of the 

2 bank’’ and inserting ‘‘capability of the in3 sured depository institution’’. 

4 (5) REGULATION AND EXAMINATION.—Section 7 

5 of the Bank Service Company Act (12 U.S.C. 1867) 

6 is amended—

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

8 bank’’ and inserting ‘‘insured depository institu9 tion’’; and 

10 (B) in subsection (c)—

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

12 that term appears and inserting ‘‘a deposi13 tory institution’’; and 

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

15 that term appears and inserting ‘‘the depos16 itory institution’’. 

17 SEC. 603. AUTHORIZATION FOR MEMBER BANK TO USE 

18 PASS-THROUGH RESERVE ACCOUNTS. 

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

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

21 a member bank’’. 

22 SEC. 604. STREAMLINING REPORTS OF CONDITION. 

23 Section 7(a) of the Federal Deposit Insurance Act (12 

24 U.S.C. 1817(a)) is amended by adding at the end the fol25 lowing: 
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1 ‘‘(11) STREAMLINING REPORTS OF CONDITION.—

2 ‘‘(A) REVIEW OF INFORMATION AND SCHED3 ULES.—Before the end of the 1-year period be4 ginning on the date of enactment of the Finan5 cial Services Regulatory Relief Act of 2006 and 

6 before the end of each 5-year period thereafter, 

7 each Federal banking agency shall, in conjunc8 tion with the other relevant Federal banking 

9 agencies, review the information and schedules 

10 that are required to be filed by an insured depos11 itory institution in a report of condition re12 quired under paragraph (3). 

13 ‘‘(B) REDUCTION OR ELIMINATION OF IN14 FORMATION FOUND TO BE UNNECESSARY.—After 

15 completing the review required by subparagraph 

16 (A), a Federal banking agency, in conjunction 

17 with the other relevant Federal banking agencies, 

18 shall reduce or eliminate any requirement to file 

19 information or schedules under paragraph (3) 

20 (other than information or schedules that are 

21 otherwise required by law) if the agency deter22 mines that the continued collection of such infor23 mation or schedules is no longer necessary or ap24 propriate.’’. 
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1 SEC. 605. EXPANSION OF ELIGIBILITY FOR 18-MONTH EXAM2 INATION SCHEDULE FOR COMMUNITY BANKS. 

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

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

5 ‘‘$250,000,000’’ and inserting ‘‘$500,000,000’’. 

6 SEC. 606. STREAMLINING DEPOSITORY INSTITUTION MERG7 ER APPLICATION REQUIREMENTS. 

8 (a) IN GENERAL.—Section 18(c)(4) of the Federal De9 posit Insurance Act (12 U.S.C. 1828(c)(4)) is amended to 

10 read as follows: 

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

12 ‘‘(A) REQUEST FOR REPORT.—In the inter13 ests of uniform standards and subject to sub14 paragraph (B), before acting on any application 

15 for approval of a merger transaction, the respon16 sible agency shall—

17 ‘‘(i) request a report on the competitive 

18 factors involved from the Attorney General 

19 of the United States; and 

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

21 the Corporation (when the Corporation is 

22 not the responsible agency). 

23 ‘‘(B) FURNISHING OF REPORT.—The report 

24 requested under subparagraph (A) shall be fur25 nished by the Attorney General to the responsible 

26 agency—
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1 ‘‘(i) not later than 30 calendar days 

2 after the date on which the Attorney Gen3 eral received the request; or 

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

5 after such date, if the requesting agency ad6 vises the Attorney General that an emer7 gency exists requiring expeditious action. 

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

9 may not be required to request a report under 

10 subparagraph (A) if—

11 ‘‘(i) the responsible agency finds that it 

12 must act immediately in order to prevent 

13 the probable failure of 1 of the insured de14 pository institutions involved in the merger 

15 transaction; or 

16 ‘‘(ii) the merger transaction involves 

17 solely an insured depository institution and 

18 1 or more of the affiliates of such depository 

19 institution.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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

22 U.S.C. 1828(c)(6)) is amended—

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

24 savings associations involved and reports on the com25 petitive factors have’’ and inserting ‘‘insured deposi-
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1 tory institutions involved, or if the proposed merger 

2 transaction is solely between an insured depository 

3 institution and 1 or more of its affiliates, and the re4 port on the competitive factors has’’; and 

5 (2) by striking the penultimate sentence and in6 serting the following: ‘‘If the agency has advised the 

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

8 existence of an emergency requiring expeditious ac9 tion and has requested a report on the competitive 

10 factors within 10 days, the transaction may not be 

11 consummated before the fifth calendar day after the 

12 date of approval by the agency.’’. 

13 SEC. 607. NONWAIVER OF PRIVILEGES. 

14 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 18 

15 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 

16 amended by adding at the end the following: 

17 ‘‘(x) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO

18 BANKING AGENCY OR SUPERVISOR.—

19 ‘‘(1) IN GENERAL.—The submission by any per20 son of any information to any Federal banking agen21 cy, State bank supervisor, or foreign banking author22 ity for any purpose in the course of any supervisory 

23 or regulatory process of such agency, supervisor, or 

24 authority shall not be construed as waiving, destroy25 ing, or otherwise affecting any privilege such person 
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1 may claim with respect to such information under 

2 Federal or State law as to any person or entity other 

3 than such agency, supervisor, or authority. 

4 ‘‘(2) RULE OF CONSTRUCTION.—No provision of 

5 paragraph (1) may be construed as implying or es6 tablishing that—

7 ‘‘(A) any person waives any privilege ap8 plicable to information that is submitted or 

9 transferred under any circumstance to which 

10 paragraph (1) does not apply; or 

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

12 applicable to any information by submitting the 

13 information to any Federal banking agency, 

14 State bank supervisor, or foreign banking au15 thority, but for this subsection.’’

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

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

18 adding at the end the following: 

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

20 BANKING AGENCY OR SUPERVISOR.—

21 ‘‘(1) IN GENERAL.—The submission by any per22 son of any information to the Administration, any 

23 State credit union supervisor, or foreign banking au24 thority for any purpose in the course of any super25 visory or regulatory process of such Board, supervisor, 
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1 or authority shall not be construed as waiving, de2 stroying, or otherwise affecting any privilege such 

3 person may claim with respect to such information 

4 under Federal or State law as to any person or entity 

5 other than such Board, supervisor, or authority. 

6 ‘‘(2) RULE OF CONSTRUCTION.—No provision of 

7 paragraph (1) may be construed as implying or es8 tablishing that—

9 ‘‘(A) any person waives any privilege ap10 plicable to information that is submitted or 

11 transferred under any circumstance to which 

12 paragraph (1) does not apply; or 

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

14 applicable to any information by submitting the 

15 information to the Administration, any State 

16 credit union supervisor, or foreign banking au17 thority, but for this subsection.’’. 

18 SEC. 608. CLARIFICATION OF APPLICATION REQUIREMENTS 

19 FOR OPTIONAL CONVERSION FOR FEDERAL 

20 SAVINGS ASSOCIATIONS. 

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

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

23 to read as follows: 

24 ‘‘(5) CONVERSION TO NATIONAL OR STATE

25 BANK.—
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1 ‘‘(A) IN GENERAL.—Any Federal savings 

2 association chartered and in operation before the 

3 date of enactment of the Gramm-Leach-Bliley 

4 Act, with branches in operation before such date 

5 of enactment in 1 or more States, may convert, 

6 at its option, with the approval of the Comp7 troller of the Currency for each national bank, 

8 and with the approval of the appropriate State 

9 bank supervisor and the appropriate Federal 

10 banking agency for each State bank, into 1 or 

11 more national or State banks, each of which may 

12 encompass 1 or more of the branches of the Fed13 eral savings association in operation before such 

14 date of enactment in 1 or more States subject to 

15 subparagraph (B). 

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

17 authority in subparagraph (A) shall apply only 

18 if each resulting national or State bank—

19 ‘‘(i) will meet all financial, manage20 ment, and capital requirements applicable 

21 to the resulting national or State bank; and 

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

23 bank results from a conversion under this 

24 subparagraph, has received approval from 

25 the Federal Deposit Insurance Corporation 
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1 under section 5(a) of the Federal Deposit 

2 Insurance Act. 

3 ‘‘(C) NO MERGER APPLICATION UNDER FDIA

4 REQUIRED.—No application under section 18(c) 

5 of the Federal Deposit Insurance Act shall be re6 quired for a conversion under this paragraph. 

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

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

9 bank supervisor’ have the same meanings as in 

10 section 3 of the Federal Deposit Insurance Act.’’. 

11 (b) FEDERAL DEPOSIT INSURANCE ACT.—Section 4(c) 

12 of the Federal Deposit Insurance Act (12 U.S.C. 1814(c)) 

13 is amended—

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

15 of the Home Owners’ Loan Act’’ after ‘‘Subject to sec16 tion 5(d)’’; and 

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

18 inserting ‘‘or Federal’’. 

19 SEC. 609. EXEMPTION FROM DISCLOSURE OF PRIVACY POL20 ICY FOR ACCOUNTANTS. 

21 (a) IN GENERAL.—Section 503 of the Gramm-Leach22 Bliley Act (15 U.S.C. 6803) is amended by adding at the 

23 end the following: 

24 ‘‘(d) EXEMPTION FOR CERTIFIED PUBLIC ACCOUNT25 ANTS.—
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1 ‘‘(1) IN GENERAL.—The disclosure requirements 

2 of subsection (a) do not apply to any person, to the 

3 extent that the person is—

4 ‘‘(A) a certified public accountant; 

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

6 by a State; and 

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

8 or regulation issued by a legislative or regu9 latory body of the State, including rules of pro10 fessional conduct or ethics, that prohibits disclo11 sure of nonpublic personal information without 

12 the knowing and expressed consent of the con13 sumer. 

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

15 shall be construed to exempt or otherwise exclude any 

16 financial institution that is affiliated or becomes af17 filiated with a certified public accountant described 

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

19 ‘‘(3) DEFINITIONS.—For purposes of this sub20 section, the term ‘State’ means any State or territory 

21 of the United States, the District of Columbia, Puerto 

22 Rico, Guam, American Samoa, the Trust Territory of 

23 the Pacific Islands, the Virgin Islands, or the North24 ern Mariana Islands.’’. 
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1 (b) CLERICAL AMENDMENTS.—Section 503 of the 

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

3 (1) by redesignating subsection (b) as subsection 

4 (c); and 

5 (2) in subsection (a), by striking ‘‘Such disclo6 sures’’ and inserting the following: 

7 ‘‘(b) REGULATIONS.—Disclosures required by sub8 section (a)’’. 

9 SEC. 610. INFLATION ADJUSTMENT FOR THE SMALL DEPOS10 ITORY INSTITUTION EXCEPTION UNDER THE 

11 DEPOSITORY INSTITUTION MANAGEMENT 

12 INTERLOCKS ACT. 

13 Section 203(1) of the Depository Institution Manage14 ment Interlocks Act (12 U.S.C. 3202(1)) is amended by 

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

16 SEC. 611. MODIFICATION TO CROSS MARKETING RESTRIC17 TIONS. 

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

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

20 ‘‘subsection (k)(4)(I)’’ and inserting ‘‘subparagraph (H) or 

21 (I) of subsection (k)(4)’’. 
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1 TITLE VII—BANKING AGENCY 

2 PROVISIONS 

3 SEC. 701. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW 

4 OF APPOINTMENT OF A RECEIVER FOR DE5 POSITORY INSTITUTIONS. 

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

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

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

9 follows: 

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

11 BANK. 

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

13 and 

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

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

16 Currency appoints a receiver under subsection (a), the na17 tional bank may, within 30 days thereafter, bring an action 

18 in the United States district court for the judicial district 

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

20 United States District Court for the District of Columbia, 

21 for an order requiring the Comptroller of the Currency to 

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

23 dismiss such action or direct the Comptroller of the Cur24 rency to remove the receiver.’’. 
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1 (b) INSURED DEPOSITORY INSTITUTIONS.—Section 

2 11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C. 

3 1821(c)(7)) is amended to read as follows: 

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

5 appointed (including the appointment of the Corpora6 tion as receiver by the Board of Directors) as conser7 vator or receiver of a depository institution under 

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

9 may, not later than 30 days thereafter, bring an ac10 tion in the United States district court for the judi11 cial district in which the home office of such deposi12 tory institution is located, or in the United States 

13 District Court for the District of Columbia, for an 

14 order requiring the Corporation to be removed as the 

15 conservator or receiver (regardless of how such ap16 pointment was made), and the court shall, upon the 

17 merits, dismiss such action or direct the Corporation 

18 to be removed as the conservator or receiver.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by sub20 sections (a) and (b) shall apply with respect to conservators 

21 or receivers appointed on or after the date of enactment of 

22 this Act. 
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1 SEC. 702. ENHANCING THE SAFETY AND SOUNDNESS OF IN2 SURED DEPOSITORY INSTITUTIONS. 

3 (a) CLARIFICATION RELATING TO THE ENFORCE4 ABILITY OF AGREEMENTS AND CONDITIONS.—The Federal 

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

6 by adding at the end the following: 

7 ‘‘SEC. 50. ENFORCEMENT OF AGREEMENTS. 

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

9 of section 8(b)(6)(A) or section 38(e)(2)(E)(i), the appro10 priate Federal banking agency for a depository institution 

11 may enforce, under section 8, the terms of—

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

13 agency on the depository institution or an institu14 tion-affiliated party in connection with any action on 

15 any application, notice, or other request concerning 

16 the depository institution; or 

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

18 the agency and the depository institution or an insti19 tution-affiliated party. 

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

21 the appointment of the Corporation as the receiver or con22 servator for a depository institution, the Corporation may 

23 enforce any condition or agreement described in paragraph 

24 (1) or (2) of subsection (a) imposed on or entered into with 

25 such institution or institution-affiliated party through an 
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1 action brought in an appropriate United States district 

2 court.’’. 

3 (b) PROTECTION OF CAPITAL OF INSURED DEPOSI4 TORY INSTITUTIONS.—Section 18(u)(1) of the Federal De5 posit Insurance Act (12 U.S.C. 1828(u)(1)) is amended—

6 (1) by striking subparagraph (B); 

7 (2) by redesignating subparagraph (C) as sub8 paragraph (B); and 

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

10 end. 

11 (c) CONFORMING AMENDMENTS.—Section 8(b) of the 

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

13 amended—

14 (1) in paragraph (3), by striking ‘‘This sub15 section and subsections (c) through (s) and subsection 

16 (u) of this section’’ and inserting ‘‘This subsection, 

17 subsections (c) through (s) and subsection (u) of this 

18 section, and section 50 of this Act’’; and 

19 (2) in paragraph (4), by striking ‘‘This sub20 section and subsections (c) through (s) and subsection 

21 (u) of this section’’ and inserting ‘‘This subsection, 

22 subsections (c) through (s) and subsection (u) of this 

23 section, and section 50 of this Act’’. 
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1 SEC. 703. CROSS GUARANTEE AUTHORITY. 

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

3 Act (12 U.S.C. 1815(e)(9)(A)) is amended to read as fol4 lows: 

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

6 same company; or’’. 

7 SEC. 704. GOLDEN PARACHUTE AUTHORITY AND NONBANK 

8 HOLDING COMPANIES. 

9 Section 18(k) of the Federal Deposit Insurance Act (12 

10 U.S.C. 1828(k)) is amended—

11 (1) in paragraph (2)(A), by striking ‘‘or deposi12 tory institution holding company’’ and inserting ‘‘or 

13 covered company’’; 

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

15 (B), and inserting the following: 

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

17 believe that the institution-affiliated party is 

18 substantially responsible for—

19 ‘‘(i) the insolvency of the depository in20 stitution or covered company; 

21 ‘‘(ii) the appointment of a conservator 

22 or receiver for the depository institution; or 

23 ‘‘(iii) the troubled condition of the de24 pository institution (as defined in the regu25 lations prescribed pursuant to section 

26 32(f)).’’; 
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1 (3) in paragraph (2)(F), by striking ‘‘depository 

2 institution holding company’’ and inserting ‘‘covered 

3 company,’’; 

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

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

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

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

8 company’’ and inserting ‘‘covered company’’; 

9 (6) in paragraph (4)(A)—

10 (A) by striking ‘‘depository institution hold11 ing company’’ each place that term appears and 

12 inserting ‘‘covered company’’; and 

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

14 place that term appears (other than in connec15 tion with the term referred to in subparagraph 

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

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

18 institution holding company’’ and inserting ‘‘covered 

19 company’’; 

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

21 following: 

22 ‘‘(D) COVERED COMPANY.—The term ‘cov23 ered company’ means any depository institution 

24 holding company (including any company re25 quired to file a report under section 4(f)(6) of the 
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1 Bank Holding Company Act of 1956), or any 

2 other company that controls an insured deposi3 tory institution.’’; and 

4 (9) in paragraph (6)—

5 (A) by striking ‘‘depository institution hold6 ing company’’ and inserting ‘‘covered com7 pany,’’; and 

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

9 inserting ‘‘or covered company’’. 

10 SEC. 705. AMENDMENTS RELATING TO CHANGE IN BANK 

11 CONTROL. 

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

13 U.S.C. 1817(j)) is amended—

14 (1) in paragraph (1)(D)—

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

16 and inserting ‘‘is needed—

17 ‘‘(i) to investigate’’; 

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

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

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

21 ‘‘(ii) to analyze the safety and sound22 ness of any plans or proposals described in 

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

24 the institution.’’; and 
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1 (2) in paragraph (7)(C), by striking ‘‘the finan2 cial condition of any acquiring person’’ and inserting 

3 ‘‘either the financial condition of any acquiring per4 son or the future prospects of the institution’’. 

5 SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RE6 SERVE BOARD WITH DISCRETION CON7 CERNING THE IMPUTATION OF CONTROL OF 

8 SHARES OF A COMPANY BY TRUSTEES. 

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

10 1956 (12 U.S.C. 1841(g)(2)) is amended by inserting before 

11 the period at the end ‘‘, unless the Board determines that 

12 such treatment is not appropriate in light of the facts and 

13 circumstances of the case and the purposes of this Act’’. 

14 SEC. 707. INTERAGENCY DATA SHARING. 

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

16 the Federal Deposit Insurance Act (12 U.S.C. 1817(a)(2)) 

17 is amended by adding at the end the following: 

18 ‘‘(C) DATA SHARING WITH OTHER AGEN19 CIES AND PERSONS.—In addition to reports of 

20 examination, reports of condition, and other re21 ports required to be regularly provided to the 

22 Corporation (with respect to all insured deposi23 tory institutions, including a depository institu24 tion for which the Corporation has been ap25 pointed conservator or receiver) or an appro-
56

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1 priate State bank supervisor (with respect to a 

2 State depository institution) under subpara3 graph (A) or (B), a Federal banking agency 

4 may, in the discretion of the agency, furnish any 

5 report of examination or other confidential su6 pervisory information concerning any depository 

7 institution or other entity examined by such 

8 agency under authority of any Federal law, to—

9 ‘‘(i) any other Federal or State agency 

10 or authority with supervisory or regulatory 

11 authority over the depository institution or 

12 other entity; 

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

14 such depository institution or entity; and 

15 ‘‘(iii) any other person that the Fed16 eral banking agency determines to be appro17 priate.’’. 

18 (b) NATIONAL CREDIT UNION ADMINISTRATION.—Sec19 tion 202(a) of the Federal Credit Union Act (12 U.S.C. 

20 1782(a)) is amended by adding at the end the following: 

21 ‘‘(8) DATA SHARING WITH OTHER AGENCIES AND

22 PERSONS.—In addition to reports of examination, re23 ports of condition, and other reports required to be 

24 regularly provided to the Board (with respect to all 

25 insured credit unions, including a credit union for 
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1 which the Corporation has been appointed conservator 

2 or liquidating agent) or an appropriate State com3 mission, board, or authority having supervision of a 

4 State-chartered credit union, the Board may, in the 

5 discretion of the Board, furnish any report of exam6 ination or other confidential supervisory information 

7 concerning any credit union or other entity examined 

8 by the Board under authority of any Federal law, 

9 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 deter16 mines 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 Federal 

24 Deposit Insurance Act (12 U.S.C. 1818(g)(1)) is 

25 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 information, 

6 indictment, or complaint, involving the 

7 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 public 

11 confidence in the depository institution,’’ 

12 and insert ‘‘posed, poses, or may pose a 

13 threat to the interests of the depositors of, or 

14 threatened, threatens, or may threaten to 

15 impair public confidence in, any relevant 

16 depository institution (as defined in sub17 paragraph (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 public 

5 confidence in the depository institution,’’ 

6 and insert ‘‘posed, poses, or may pose a 

7 threat to the interests of the depositors of, or 

8 threatened, threatens, or may threaten to 

9 impair public confidence in, any relevant 

10 depository institution (as defined in sub11 paragraph (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 insert17 ing ‘‘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 term 
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1 ‘relevant depository institution’ means any de2 pository institution of which the party is or was 

3 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 Insur13 ance Act (12 U.S.C. 1818(g)) is amended to read as 

14 follows: 

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

16 PARTICIPATION ORDERS IN THE CASE OF CERTAIN CRIMI17 NAL OFFENSES.—’’. 

18 (b) INSURED CREDIT UNIONS.—

19 (1) IN GENERAL.—Section 206(i)(1) of the Fed20 eral 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 re3 cently 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 ‘‘any 

8 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 order 

14 is, or most recently was, an institution-affiliated 

15 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 (A) 

22 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 or 

2 issued by the Board; or 

3 ‘‘(ii) whether the credit union at which 

4 the individual was an institution-affiliated 

5 party at the time of the offense remains in 

6 existence at the time the order is considered 

7 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 FROM

13 PARTICIPATION ORDERS IN THE CASE OF CERTAIN CRIMI14 NAL 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 fol21 lowing: 

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 com-
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1 pelled to disclose information received from aforeign 

2 regulatory or supervisory authority if—

3 ‘‘(A) the Federal banking agency determines 

4 that the foreign regulatory or supervisory au5 thority has, in good faith, determined and rep6 resented 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 reg19 ulatory or supervisory authority. 

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

21 STATES CODE.—For purposes of section 552 of title 5, 

22 United States Code, this subsection shall be treated as 

23 a statute described in subsection (b)(3)(B) of such sec24 tion. 
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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 agen8 cy from complying with an order of a court of 

9 the United States in an action commenced by the 

10 United States or such agency. 

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

12 purposes of this subsection, the term ‘Federal banking 

13 agency’ means the Board, the Comptroller of the Cur14 rency, the Federal Deposit Insurance Corporation, 

15 and the Director of the Office of Thrift Supervision.’’. 

16 SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED 

17 INDIVIDUALS. 

18 (a) EXTENSION OF AUTOMATIC PROHIBITION.—Sec19 tion 19 of the Federal Deposit Insurance Act (12 U.S.C. 

20 1829) is amended by adding at the end the following new 

21 subsections: 

22 ‘‘(d) BANK HOLDING COMPANIES.—

23 ‘‘(1) IN GENERAL.—Subsections (a) and (b) shall 

24 apply to any company (other than a foreign bank) 

25 that is a bank holding company and any organiza-
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1 tion organized and operated under section 25A of the 

2 Federal Reserve Act or operating under section 25 of 

3 the Federal Reserve Act, as if such bank holding com4 pany or organization were an insured depository in5 stitution, except that such subsections shall be applied 

6 for purposes of this subsection by substituting ‘Board 

7 of Governors of the Federal Reserve System’ for ‘Cor8 poration’ each place that term appears in such sub9 sections. 

10 ‘‘(2) AUTHORITY OF BOARD.—The Board of Gov11 ernors of the Federal Reserve System may provide ex12 emptions, by regulation or order, from the application 

13 of paragraph (1) if the exemption is consistent with 

14 the purposes of this subsection. 

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

16 ‘‘(1) IN GENERAL.—Subsections (a) and (b) shall 

17 apply to any savings and loan holding company as 

18 if such savings and loan holding company were an 

19 insured depository institution, except that such sub20 sections shall be applied for purposes of this sub21 section by substituting ‘Director of the Office of Thrift 

22 Supervision’ for ‘Corporation’ each place that term 

23 appears in such subsections. 

24 ‘‘(2) AUTHORITY OF DIRECTOR.—The Director of 

25 the Office of Thrift Supervision may provide exemp-
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1 tions, by regulation or order, from the application of 

2 paragraph (1) if the exemption is consistent with the 

3 purposes of this subsection.’’. 

4 (b) ENHANCED DISCRETION TO REMOVE CONVICTED

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

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

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

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

9 (iii) and inserting ‘‘; or’’; and 

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

11 clause: 

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

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

14 holding company or of a subsidiary (other 

15 than a savings association) of a savings 

16 and loan holding company has been con17 victed of any criminal offense involving dis18 honesty or a breach of trust or a criminal 

19 offense under section 1956, 1957, or 1960 of 

20 title 18, United States Code, or has agreed 

21 to enter into a pretrial diversion or similar 

22 program in connection with a prosecution 

23 for such an offense,’’. 
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1 SEC. 711. COORDINATION OF STATE EXAMINATION AU2 THORITY. 

3 Section 10(h) of the Federal Deposit Insurance Act (12 

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

5 ‘‘(h) COORDINATION OF EXAMINATION AUTHORITY.—

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

7 HOST STATES.—

8 ‘‘(A) HOME STATE OF BANK.—The appro9 priate State bank supervisor of the home State of 

10 an insured State bank has authority to examine 

11 and supervise the bank. 

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

13 bank supervisor of the home State of an insured 

14 State bank and any State bank supervisor of an 

15 appropriate host State shall exercise its respec16 tive authority to supervise and examine the 

17 branches of the bank in a host State in accord18 ance with the terms of any applicable coopera19 tive agreement between the home State bank su20 pervisor and the State bank supervisor of the rel21 evant host State. 

22 ‘‘(C) SUPERVISORY FEES.—Except as ex23 pressly provided in a cooperative agreement be24 tween the State bank supervisors of the home 

25 State and any host State of an insured State 

26 bank, only the State bank supervisor of the home 
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1 State of an insured State bank may levy or 

2 charge State supervisory fees on the bank. 

3 ‘‘(2) HOST STATE EXAMINATION.—

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

5 branch operated in a host State by an out-of6 State insured State bank that resulted from an 

7 interstate merger transaction approved under 

8 section 44, or that was established in such State 

9 pursuant to section 5155(g) of the Revised Stat10 utes of the United States, the third undesignated 

11 paragraph of section 9 of the Federal Reserve Act 

12 or section 18(d)(4) of this Act, the appropriate 

13 State bank supervisor of such host State may—

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

15 bank supervisor of the bank’s home State 

16 and subject to the terms of any applicable 

17 cooperative agreement with the State bank 

18 supervisor of such home State, examine such 

19 branch for the purpose of determining com20 pliance with host State laws that are appli21 cable pursuant to section 24(j), including 

22 those that govern community reinvestment, 

23 fair lending, and consumer protection; and 

24 ‘‘(ii) if expressly permitted under and 

25 subject to the terms of a cooperative agree-
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1 ment with the State bank supervisor of the 

2 bank’s home State or if such out-of-State in3 sured State bank has been determined to be 

4 in a troubled condition by either the State 

5 bank supervisor of the bank’s home State or 

6 the bank’s appropriate Federal banking 

7 agency, participate in the examination of 

8 the bank by the State bank supervisor of the 

9 bank’s home State to ascertain that the ac10 tivities of the branch in such host State are 

11 not conducted in an unsafe or unsound 

12 manner. 

13 ‘‘(B) NOTICE OF DETERMINATION.—

14 ‘‘(i) IN GENERAL.—The State bank su15 pervisor of the home State of an insured 

16 State bank shall notify the State bank su17 pervisor of each host State of the bank if 

18 there has been a final determination that 

19 the bank is in a troubled condition. 

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

21 bank supervisor of the home State of an in22 sured State bank shall provide notice under 

23 clause (i) as soon as is reasonably possible, 

24 but in all cases not later than 15 business 

25 days after the date on which the State bank 
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1 supervisor has made such final determina2 tion or has received written notification of 

3 such final determination. 

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

5 bank supervisor of a host State determines that a 

6 branch of an out-of-State insured State bank is vio7 lating any law of the host State that is applicable to 

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

9 law that governs community reinvestment, fair lend10 ing, or consumer protection, the State bank supervisor 

11 of the host State or, to the extent authorized by the 

12 law of the host State, a host State law enforcement of13 ficer may, with written notice to the State bank su14 pervisor of the bank’s home State and subject to the 

15 terms of any applicable cooperative agreement with 

16 the State bank supervisor of the bank’s home State, 

17 undertake such enforcement actions and proceedings 

18 as would be permitted under the law of the host State 

19 as if the branch were a bank chartered by that host 

20 State. 

21 ‘‘(4) COOPERATIVE AGREEMENT.—

22 ‘‘(A) IN GENERAL.—The State bank super23 visors from 2 or more States may enter into co24 operative agreements to facilitate State regu25 latory supervision of State banks, including co-
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1 operative agreements relating to the coordination 

2 of examinations and joint participation in ex3 aminations. 

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

5 subsection, the term ‘cooperative agreement’ 

6 means a written agreement that is signed by the 

7 home State bank supervisor and the host State 

8 bank supervisor to facilitate State regulatory su9 pervision of State banks, and includes nation10 wide or multi-State cooperative agreements and 

11 cooperative agreements solely between the home 

12 State and host State. 

13 ‘‘(C) RULE OF CONSTRUCTION.—Except for 

14 State bank supervisors, no provision of this sub15 section relating to such cooperative agreements 

16 shall be construed as limiting in any way the 

17 authority of home State and host State law en18 forcement officers, regulatory supervisors, or 

19 other officials that have not signed such coopera20 tive agreements to enforce host State laws that 

21 are applicable to a branch of an out-of-State in22 sured State bank located in the host State pursu23 ant to section 24(j). 

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

25 provision of this subsection shall be construed as lim-
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1 iting in any way the authority of any Federal bank2 ing agency. 

3 ‘‘(6) STATE TAXATION AUTHORITY NOT AF4 FECTED.—No provision of this subsection shall be 

5 construed as affecting the authority of any State or 

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

7 administer any tax or method of taxation to any 

8 bank, bank holding company, or foreign bank, or any 

9 affiliate of any bank, bank holding company, or for10 eign bank, to the extent that such tax or tax method 

11 is otherwise permissible by or under the Constitution 

12 of the United States or other Federal law. 

13 ‘‘(7) DEFINITIONS.—For purpose of this section, 

14 the following definitions shall apply: 

15 ‘‘(A) HOST STATE, HOME STATE, OUT-OF16 STATE BANK.—The terms ‘host State’, ‘home 

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

18 meanings as in section 44(g). 

19 ‘‘(B) STATE SUPERVISORY FEES.—The term 

20 ‘State supervisory fees’ means assessments, exam21 ination fees, branch fees, license fees, and all 

22 other fees that are levied or charged by a State 

23 bank supervisor directly upon an insured State 

24 bank or upon branches of an insured State bank. 
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1 ‘‘(C) TROUBLED CONDITION.—Solely for 

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

3 bank has been determined to be in ‘troubled con4 dition’ if the bank—

5 ‘‘(i) has a composite rating, as deter6 mined in its most recent report of examina7 tion, of 4 or 5 under the Uniform Financial 

8 Institutions Ratings System; 

9 ‘‘(ii) is subject to a proceeding initi10 ated by the Corporation for termination or 

11 suspension of deposit insurance; or 

12 ‘‘(iii) is subject to a proceeding initi13 ated by the State bank supervisor of the 

14 bank’s home State to vacate, revoke, or ter15 minate the charter of the bank, or to liq16 uidate the bank, or to appoint a receiver for 

17 the bank. 

18 ‘‘(D) FINAL DETERMINATION.—For pur19 poses of paragraph (2)(B), the term ‘final deter20 mination’ means the transmittal of a report of 

21 examination to the bank or transmittal of offi22 cial notice of proceedings to the bank.’’. 
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1 SEC. 712. DEPUTY DIRECTOR; SUCCESSION AUTHORITY FOR 

2 DIRECTOR OF THE OFFICE OF THRIFT SUPER3 VISION. 

4 (a) ESTABLISHMENT OF POSITION OF DEPUTY DIREC5 TOR.—Section 3(c)(5) of the Home Owners’ Loan Act (12 

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

7 ‘‘(5) DEPUTY DIRECTOR.—

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

9 Treasury shall appoint a Deputy Director, and 

10 may appoint not more than 3 additional Deputy 

11 Directors of the Office. 

12 ‘‘(B) FIRST DEPUTY DIRECTOR.—If the Sec13 retary of the Treasury appoints more than 1 

14 Deputy Director of the Office, the Secretary shall 

15 designate one such appointee as the First Deputy 

16 Director. 

17 ‘‘(C) DUTIES.—Each Deputy Director ap18 pointed under this paragraph shall take an oath 

19 of office and perform such duties as the Director 

20 shall direct. 

21 ‘‘(D) COMPENSATION AND BENEFITS.—The 

22 Director shall fix the compensation and benefits 

23 for each Deputy Director in accordance with this 

24 Act.’’. 
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1 (b) SERVICE OF DEPUTY DIRECTOR AS ACTING DIREC2 TOR.—Section 3(c)(3) of the Home Owners’ Loan Act (12 

3 U.S.C. 1462a(c)(3)) is amended—

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

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

6 ‘‘(A) IN GENERAL.—A vacancy in the posi7 tion of Director’’; and 

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

9 ‘‘(B) ACTING DIRECTOR.—

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

11 vacancy in the position of Director or dur12 ing the absence or disability of the Director, 

13 the Deputy Director shall serve as Acting 

14 Director. 

15 ‘‘(ii) SUCCESSION IN CASE OF 2 OR

16 MORE DEPUTY DIRECTORS.—If there are 2 

17 or more Deputy Directors serving at the 

18 time a vacancy in the position of Director 

19 occurs or the absence or disability of the Di20 rector commences, the First Deputy Director 

21 shall serve as Acting Director under clause 

22 (i) followed by such other Deputy Directors 

23 under any order of succession the Director 

24 may establish. 
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1 ‘‘(iii) AUTHORITY OF ACTING DIREC2 TOR.—Any Deputy Director, while serving 

3 as Acting Director under this subpara4 graph, shall be vested with all authority, 

5 duties, and privileges of the Director under 

6 this Act and any other provision of Federal 

7 law.’’. 

8 SEC. 713. OFFICE OF THRIFT SUPERVISION REPRESENTA9 TION ON BASEL COMMITTEE ON BANKING SU10 PERVISION. 

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

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

13 amended—

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

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

16 SUPERVISION’’; 

17 (2) by striking ‘‘As one of the three’’ and insert18 ing the following: 

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

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

21 ‘‘(b) As one of the 4 Federal bank regulatory and su22 pervisory agencies, the Office of Thrift Supervision shall be 

23 given equal representation with the Board of Governors of 

24 the Federal Reserve System, the Office of the Comptroller 

25 of the Currency, and the Federal Deposit Insurance Cor-
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1 poration on the Committee on Banking Regulations and 

2 Supervisory Practices of the Group of Ten Countries and 

3 Switzerland.’’. 

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

5 the International Lending Supervision Act of 1983 (12 

6 U.S.C. 3909(a)) is amended—

7 (1) in paragraph (2), by striking ‘‘insured bank’’ 

8 and inserting ‘‘insured depository institution’’; and 

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

10 bank’, as such term is used in section 3(h)’’ and in11 serting ‘‘an ‘insured depository institution’, as such 

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

13 SEC. 714. FEDERAL FINANCIAL INSTITUTIONS EXAMINA14 TION COUNCIL. 

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

16 Federal Financial Institutions Examination Council Act of 

17 1978 (12 U.S.C. 3303(a)) is amended—

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

19 all that follows through the end of the paragraph and 

20 inserting ‘‘Thrift Supervision,’’; 

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

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

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

24 ‘‘(6) the Chairman of the State Liaison Com25 mittee.’’. 
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1 (b) CHAIRPERSON OF LIAISON COMMITTEE.—Section 

2 1007 of the Federal Financial Institutions Examination 

3 Council Act of 1978 (12 U.S.C. 3306) is amended by adding 

4 at the end the following: ‘‘Members of the Liaison Com5 mittee shall elect a chairperson from among the members 

6 serving on the committee.’’. 

7 SEC. 715. TECHNICAL AMENDMENTS RELATING TO IN8 SURED INSTITUTIONS. 

9 (a) TECHNICAL AMENDMENT TO THE FEDERAL DE10 POSIT INSURANCE ACT.—Section 8(i)(3) of the Federal De11 posit Insurance Act (12 U.S.C. 1818(i)(3)) is amended by 

12 inserting ‘‘or order’’ after ‘‘notice’’ each place that term ap13 pears. 

14 (b) TECHNICAL AMENDMENT TO THE FEDERAL CRED15 IT UNION ACT.—Section 206(k)(3) of the Federal Credit 

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

17 ‘‘or order’’ after ‘‘notice’’ each place that term appears. 

18 SEC. 716. CLARIFICATION OF ENFORCEMENT AUTHORITY. 

19 (a) ACTIONS ON APPLICATIONS, NOTICES, AND OTHER

20 REQUESTS; CLARIFICATION THAT CHANGE IN CONTROL

21 CONDITIONS ARE ENFORCEABLE.—Section 8 of the Federal 

22 Deposit Insurance Act (12 U.S.C. 1818) is amended—

23 (1) in subsection (b)(1), in the first sentence, by 

24 striking ‘‘the granting of any application or other re25 quest by the depository institution’’ and inserting 
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1 ‘‘any action on any application, notice, or other re2 quest by the depository institution or institution-af3 filiated party,’’; 

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

5 ‘‘the grant of any application or other request by such 

6 depository institution’’ and inserting ‘‘any action on 

7 any application, notice, or request by such depository 

8 institution or institution-affiliated party’’; and 

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

10 grant of any application or other request by such de11 pository institution’’ and inserting ‘‘any action on 

12 any application, notice, or other request by the depos13 itory institution or institution-affiliated party’’. 

14 (b) CLARIFICATION THAT CHANGE IN CONTROL CON15 DITIONS ARE ENFORCEABLE.—Section 206 of the Federal 

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

17 (1) in subsection (b)(1), in the first sentence, by 

18 striking ‘‘the granting of any application or other re19 quest by the credit union’’ and inserting ‘‘any action 

20 on any application, notice, or other request by the 

21 credit union or institution-affiliated party,’’; 

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

23 ‘‘the grant of any application or other request by such 

24 credit union’’ and inserting ‘‘any action on any ap-
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1 plication, notice, or request by such credit union or 

2 institution-affiliated party’’; and 

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

4 grant of any application or other request by such 

5 credit union’’ and inserting ‘‘any action on any ap6 plication, notice, or other request by the credit union 

7 or institution-affiliated party’’. 

8 SEC. 717. FEDERAL BANKING AGENCY AUTHORITY TO EN9 FORCE DEPOSIT INSURANCE CONDITIONS. 

10 Section 8 of the Federal Deposit Insurance Act (12 

11 U.S.C. 1818) is amended—

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

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

14 and inserting ‘‘in writing by a Federal banking 

15 agency’’; and 

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

17 serve’’ and inserting ‘‘the appropriate Federal 

18 banking agency for the depository institution 

19 may issue and serve’’; 

20 (2) in subsection (e)(1)—

21 (A) in subparagraph (A)(i)(III), by striking 

22 ‘‘in writing by the appropriate Federal banking 

23 agency’’ and inserting ‘‘in writing by a Federal 

24 banking agency’’; and 
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1 (B) in the undesignated matter at the end, 

2 by striking ‘‘the agency may serve upon such 

3 party’’ and inserting ‘‘the appropriate Federal 

4 banking agency for the depository institution 

5 may serve upon such party’’; and 

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

7 writing by the appropriate Federal banking agency’’ 

8 and inserting ‘‘in writing by a Federal banking agen9 cy’’. 

10 SEC. 718. RECEIVER OR CONSERVATOR CONSENT REQUIRE11 MENT. 

12 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

13 11(e)(13) of the Federal Deposit Insurance Act (12 U.S.C. 

14 1821(e)(13)) is amended by adding at the end the following: 

15 ‘‘(C) CONSENT REQUIREMENT.—

16 ‘‘(i) IN GENERAL.—Except as otherwise 

17 provided by this section or section 15, no 

18 person may exercise any right or power to 

19 terminate, accelerate, or declare a default 

20 under any contract to which the depository 

21 institution is a party, or to obtain posses22 sion of or exercise control over any property 

23 of the institution or affect any contractual 

24 rights of the institution, without the consent 

25 of the conservator or receiver, as appro-
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1 priate, during the 45-day period beginning 

2 on the date of the appointment of the con3 servator, or during the 90-day period begin4 ning on the date of the appointment of the 

5 receiver, as applicable. 

6 ‘‘(ii) CERTAIN EXCEPTIONS.—No pro7 vision of this subparagraph shall apply to 

8 a director or officer liability insurance con9 tract or a depository institution bond, to 

10 the rights of parties to certain qualified fi11 nancial contracts pursuant to paragraph 

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

13 contracts pursuant to subtitle A of title IV 

14 of the Federal Deposit Insurance Corpora15 tion Improvement Act of 1991 (12 U.S.C. 

16 4401 et seq.), or shall be construed as per17 mitting the conservator or receiver to fail to 

18 comply with otherwise enforceable provi19 sions of such contract. 

20 ‘‘(iii) RULE OF CONSTRUCTION.—Noth21 ing in this subparagraph shall be construed 

22 to limit or otherwise affect the applicability 

23 of title 11, United States Code.’’. 
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1 (b) INSURED CREDIT UNIONS.—Section 207(c)(12) of 

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

3 amended by adding the following: 

4 ‘‘(C) CONSENT REQUIREMENT.—

5 ‘‘(i) IN GENERAL.—Except as otherwise 

6 provided by this section, no person may ex7 ercise any right or power to terminate, ac8 celerate, or declare a default under any con9 tract to which the credit union is a party, 

10 or to obtain possession of or exercise control 

11 over any property of the credit union or af12 fect any contractual rights of the credit 

13 union, without the consent of the conser14 vator or liquidating agent, as appropriate, 

15 during the 45-day period beginning on the 

16 date of the appointment of the conservator, 

17 or during the 90-day period beginning on 

18 the date of the appointment of the liqui19 dating agent, as applicable. 

20 ‘‘(ii) CERTAIN EXCEPTIONS.—No pro21 vision of this subparagraph shall apply to 

22 a director or officer liability insurance con23 tract or a credit union bond, or to the 

24 rights of parties to certain qualified finan25 cial contracts pursuant to paragraph (8), or 
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1 shall be construed as permitting the conser2 vator or liquidating agent to fail to comply 

3 with otherwise enforceable provisions of such 

4 contract. 

5 ‘‘(iii) RULE OF CONSTRUCTION.—Noth6 ing in this subparagraph shall be construed 

7 to limit or otherwise affect the applicability 

8 of title 11, United States Code.’’. 

9 SEC. 719. ACQUISITION OF FICO SCORES. 

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

11 U.S.C. 1681b(a)) is amended by adding at the end the fol12 lowing: 

13 ‘‘(6) To the Federal Deposit Insurance Corpora14 tion or the National Credit Union Administration as 

15 part of its preparation for its appointment or as part 

16 of its exercise of powers, as conservator, receiver, or 

17 liquidating agent for an insured depository institu18 tion or insured credit union under the Federal De19 posit Insurance Act or the Federal Credit Union Act, 

20 or other applicable Federal or State law, or in con21 nection with the resolution or liquidation of a failed 

22 or failing insured depository institution or insured 

23 credit union, as applicable.’’. 
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1 SEC. 720. ELIMINATION OF CRIMINAL INDICTMENTS 

2 AGAINST RECEIVERSHIPS. 

3 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

4 15(b) of the Federal Deposit Insurance Act (12 U.S.C. 

5 1825(b)) is amended by inserting immediately after para6 graph (3) the following: 

7 ‘‘(4) EXEMPTION FROM CRIMINAL PROSECU8 TION.—The Corporation shall be exempt from all 

9 prosecution by the United States or any State, coun10 ty, municipality, or local authority for any criminal 

11 offense arising under Federal, State, county, munic12 ipal, or local law, which was allegedly committed by 

13 the institution, or persons acting on behalf of the in14 stitution, prior to the appointment of the Corporation 

15 as receiver.’’. 

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

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

18 amended by adding at the end the following: 

19 ‘‘(K) EXEMPTION FROM CRIMINAL PROSECU20 TION.—The Administration shall be exempt from 

21 all prosecution by the United States or any 

22 State, county, municipality, or local authority 

23 for any criminal offense arising under Federal, 

24 State, county, municipal, or local law, which 

25 was allegedly committed by a credit union, or 

26 persons acting on behalf of a credit union, prior 
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1 to the appointment of the Administration as liq2 uidating agent.’’. 

3 SEC. 721. RESOLUTION OF DEPOSIT INSURANCE DISPUTES. 

4 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

5 11(f) of the Federal Deposit Insurance Act (12 U.S.C. 

6 1821(f)) is amended by striking paragraphs (3) through (5) 

7 and inserting the following: 

8 ‘‘(3) RESOLUTION OF DISPUTES.—A determina9 tion by the Corporation regarding any claim for in10 surance coverage shall be treated as a final deter11 mination for purposes of this section. In its discre12 tion, the Corporation may promulgate regulations 

13 prescribing procedures for resolving any disputed 

14 claim relating to any insured deposit or any deter15 mination of insurance coverage with respect to any 

16 deposit. 

17 ‘‘(4) REVIEW OF CORPORATION DETERMINA18 TION.—A final determination made by the Corpora19 tion regarding any claim for insurance coverage shall 

20 be a final agency action reviewable in accordance 

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

22 United States district court for the Federal judicial 

23 district where the principal place of business of the 

24 depository institution is located. 
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1 ‘‘(5) STATUTE OF LIMITATIONS.—Any request for 

2 review of a final determination by the Corporation 

3 regarding any claim for insurance coverage shall be 

4 filed with the appropriate United States district court 

5 not later than 60 days after the date on which such 

6 determination is issued.’’. 

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

8 Federal Credit Union Act (12 U.S.C. 1787(d)) is amended 

9 by striking paragraphs (3) through (5) and inserting the 

10 following: 

11 ‘‘(3) RESOLUTION OF DISPUTES.—A determina12 tion by the Administration regarding any claim for 

13 insurance coverage shall be treated as a final deter14 mination for purposes of this section. In its discre15 tion, the Board may promulgate regulations pre16 scribing procedures for resolving any disputed claim 

17 relating to any insured deposit or any determination 

18 of insurance coverage with respect to any deposit. A 

19 final determination made by the Board regarding 

20 any claim for insurance coverage shall be a final 

21 agency action reviewable in accordance with chapter 

22 7 of title 5, United States Code, by the United States 

23 district court for the Federal judicial district where 

24 the principal place of business of the credit union is 

25 located. 
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1 ‘‘(4) STATUTE OF LIMITATIONS.—Any request for 

2 review of a final determination by the Board regard3 ing any claim for insurance coverage shall be filed 

4 with the appropriate United States district court not 

5 later than 60 days after the date on which such deter6 mination is issued.’’. 

7 SEC. 722. RECORDKEEPING. 

8 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

9 11(d)(15)(D) of the Federal Deposit Insurance Act (12 

10 U.S.C. 1821(d)(15)(D)) is amended—

11 (1) by striking ‘‘After the end of the 6-year pe12 riod’’ and inserting the following: 

13 ‘‘(i) IN GENERAL.—Except as provided 

14 in clause (ii), after the end of the 6-year pe15 riod’’; and 

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

17 ‘‘(ii) OLD RECORDS.—Notwithstanding 

18 clause (i), the Corporation may destroy 

19 records of an insured depository institution 

20 which are at least 10 years old as of the 

21 date on which the Corporation is appointed 

22 as the receiver of such depository institution 

23 in accordance with clause (i) at any time 

24 after such appointment is final, without re-
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1 gard to the 6-year period of limitation con2 tained in clause (i).’’. 

3 (b) INSURED CREDIT UNIONS.—Section 207(b)(15)(D) 

4 of the Federal Credit Union Act (12 U.S.C. 1787(b)(15)(D)) 

5 is amended—

6 (1) by striking ‘‘After the end of the 6-year pe7 riod’’ and inserting the following: 

8 ‘‘(i) IN GENERAL.—Except as provided 

9 in clause (ii), after the end of the 6-year pe10 riod’’; and 

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

12 ‘‘(ii) OLD RECORDS.—Notwithstanding 

13 clause (i) the Board may destroy records of 

14 an insured credit union which are at least 

15 10 years old as of the date on which the 

16 Board is appointed as liquidating agent of 

17 such credit union in accordance with clause 

18 (i) at any time after such appointment is 

19 final, without regard to the 6-year period of 

20 limitation contained in clause (i).’’. 

21 SEC. 723. PRESERVATION OF RECORDS. 

22 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 

23 10(f) of the Federal Deposit Insurance Act (12 U.S.C. 

24 1820(f)) is amended to read as follows: 

25 ‘‘(f) PRESERVATION OF AGENCY RECORDS.—
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1 ‘‘(1) IN GENERAL.—A Federal banking agency 

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

3 kept by the agency or in the possession or custody of 

4 the agency to be—

5 ‘‘(A) photographed or microphotographed or 

6 otherwise reproduced upon film; or 

7 ‘‘(B) preserved in any electronic medium or 

8 format which is capable of—

9 ‘‘(i) being read or scanned by com10 puter; and 

11 ‘‘(ii) being reproduced from such elec12 tronic medium or format by printing any 

13 other form of reproduction of electronically 

14 stored data. 

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

16 photographs, microphotographs, or photographic film 

17 or copies thereof described in paragraph (1)(A) or re18 production of electronically stored data described in 

19 paragraph (1)(B) shall be deemed to be an original 

20 record for all purposes, including introduction in evi21 dence in all State and Federal courts or administra22 tive agencies, and shall be admissible to prove any 

23 act, transaction, occurrence, or event therein recorded. 

24 ‘‘(3) AUTHORITY OF THE FEDERAL BANKING

25 AGENCIES.—Any photographs, microphotographs, or 
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1 photographic film or copies thereof described in para2 graph (1)(A) or reproduction of electronically stored 

3 data described in paragraph (1)(B) shall be preserved 

4 in such manner as the Federal banking agency shall 

5 prescribe, and the original records, papers, or docu6 ments may be destroyed or otherwise disposed of as 

7 the Federal banking agency may direct.’’. 

8 (b) INSURED CREDIT UNIONS.—Section 206(s) of the 

9 Federal Credit Union Act (12 U.S.C. 1786(s)) is amended 

10 by adding at the end the following: 

11 ‘‘(9) PRESERVATION OF RECORDS.—

12 ‘‘(A) IN GENERAL.—The Board may cause 

13 any and all records, papers, or documents kept 

14 by the Administration or in the possession or 

15 custody of the Administration to be—

16 ‘‘(i) photographed or microphoto17 graphed or otherwise reproduced upon film; 

18 or 

19 ‘‘(ii) preserved in any electronic me20 dium or format which is capable of—

21 ‘‘(I) being read or scanned by 

22 computer; and 

23 ‘‘(II) being reproduced from such 

24 electronic medium or format by print-
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1 ing or any other form of reproduction 

2 of electronically stored data. 

3 ‘‘(B) TREATMENT AS ORIGINAL RECORDS.—

4 Any photographs, micrographs, or photographic 

5 film or copies thereof described in subparagraph 

6 (A)(i) or reproduction of electronically stored 

7 data described in subparagraph (A)(ii) shall be 

8 deemed to be an original record for all purposes, 

9 including introduction in evidence in all State 

10 and Federal courts or administrative agencies, 

11 and shall be admissible to prove any act, trans12 action, occurrence, or event therein recorded. 

13 ‘‘(C) AUTHORITY OF THE ADMINISTRA14 TION.—Any photographs, microphotographs, or 

15 photographic film or copies thereof described in 

16 subparagraph (A)(i) or reproduction of electroni17 cally stored data described in subparagraph 

18 (A)(ii) shall be preserved in such manner as the 

19 Administration shall prescribe, and the original 

20 records, papers, or documents may be destroyed 

21 or otherwise disposed of as the Administration 

22 may direct.’’. 
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1 SEC. 724. TECHNICAL AMENDMENTS TO INFORMATION 

2 SHARING PROVISION IN THE FEDERAL DE3 POSIT INSURANCE ACT. 

4 Section 11(t) of the Federal Deposit Insurance Act (12 

5 U.S.C. 1821(t)) is amended—

6 (1) in paragraph (1), by inserting ‘‘, in any ca7 pacity,’’ after ‘‘A covered agency’’; and 

8 (2) in paragraph (2)(A)—

9 (A) in clause (i), by striking ‘‘appropriate’’; 

10 (B) by striking clause (ii); and 

11 (C) by redesignating clauses (iii) through 

12 (vi) as clauses (ii) through (v), respectively. 

13 SEC. 725. TECHNICAL AND CONFORMING AMENDMENTS RE14 LATING TO BANKS OPERATING UNDER THE 

15 CODE OF LAW FOR THE DISTRICT OF COLUM16 BIA. 

17 (a) FEDERAL RESERVE ACT.—The Federal Reserve 

18 Act (12 U.S.C. 221 et seq.) is amended—

19 (1) in the second undesignated paragraph of the 

20 first section (12 U.S.C. 221), by adding at the end the 

21 following: ‘‘For purposes of this Act, a State bank in22 cludes any bank which is operating under the Code 

23 of Law for the District of Columbia.’’; and 

24 (2) in the first sentence of the first undesignated 

25 paragraph of section 9 (12 U.S.C. 321), by striking 

26 ‘‘incorporated by special law of any State, or’’ and 
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1 inserting ‘‘incorporated by special law of any State, 

2 operating under the Code of Law for the District of 

3 Columbia, or’’. 

4 (b) BANK CONSERVATION ACT.—Section 202 of the 

5 Bank Conservation Act (12 U.S.C. 202) is amended—

6 (1) by striking ‘‘means (1) any national’’ and 

7 inserting ‘‘means any national’’; and 

8 (2) by striking ‘‘, and (2) any bank or trust 

9 company located in the District of Columbia and op10 erating under the supervision of the Comptroller of 

11 the Currency’’. 

12 (c) DEPOSITORY INSTITUTION DEREGULATION AND

13 MONETARY CONTROL ACT OF 1980.—Part C of title VII 

14 of the Depository Institution Deregulation and Monetary 

15 Control Act of 1980 (12 U.S.C. 216 et seq.) is amended—

16 (1) in paragraph (1) of section 731 (12 U.S.C. 

17 216(1)), by striking ‘‘and closed banks in the District 

18 of Columbia’’; and 

19 (2) in paragraph (2) of section 732 (12 U.S.C. 

20 216a(2)), by striking ‘‘or closed banks in the District 

21 of Columbia’’. 

22 (d) FEDERAL DEPOSIT INSURANCE ACT.—Section 

23 3(a)(2)(B) of the Federal Deposit Insurance Act (12 U.S.C. 

24 1813(a)(2)(B)) is amended by striking ‘‘(except a national 

25 bank)’’. 
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1 (e) NATIONAL BANK CONSOLIDATION AND MERGER

2 ACT.—Section 7(1) of the National Bank Consolidation and 

3 Merger Act (12 U.S.C. 215b(1)) is amended by striking 

4 ‘‘(except a national banking association located in the Dis5 trict of Columbia)’’. 

6 (f) ACT OF AUGUST 17, 1950.—Section 1(a) of the Act 

7 entitled ‘‘An Act to provide for the conversion of national 

8 banking associations into and their merger or consolidation 

9 with State banks, and for other purposes’’ and approved 

10 August 17, 1950 (12 U.S.C. 214(a)) is amended by striking 

11 ‘‘(except a national banking association)’’. 

12 (g) FEDERAL TRADE COMMISSION ACT.—Section 

13 18(f)(2) of the Federal Trade Commission Act (15 U.S.C. 

14 57a(f)(2)) is amended—

15 (1) in subparagraph (A), by striking ‘‘, banks 

16 operating under the code of law for the District of Co17 lumbia,’’; and 

18 (2) in subparagraph (B), by striking ‘‘and banks 

19 operating under the code of law for the District of Co20 lumbia’’. 

21 SEC. 726. TECHNICAL CORRECTIONS TO THE FEDERAL 

22 CREDIT UNION ACT. 

23 The Federal Credit Union Act (12 U.S.C. 1751 et seq.) 

24 is amended as follows: 
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1 (1) In section 101(3), strike ‘‘and’’ after the 

2 semicolon. 

3 (2) In section 101(5), strike the terms ‘‘account 

4 account’’ and ‘‘account accounts’’ each place any such 

5 term appears and insert ‘‘account’’. 

6 (3) In section 107(5)(E), strike the period at the 

7 end and insert a semicolon. 

8 (4) In each of paragraphs (6) and (7) of section 

9 107, strike the period at the end and insert a semi10 colon. 

11 (5) In section 107(7)(D), strike ‘‘the Federal 

12 Savings and Loan Insurance Corporation or’’. 

13 (6) In section 107(7)(E), strike ‘‘the Federal 

14 Home Loan Bank Board,’’ and insert ‘‘the Federal 

15 Housing Finance Board,’’. 

16 (7) In section 107(9), strike ‘‘subchapter III’’ 

17 and insert ‘‘title III’’. 

18 (8) In section 107(13), strike ‘‘and’’ after the 

19 semicolon at the end. 

20 (9) In section 109(c)(2)(A)(i), strike ‘‘(12 U.S.C. 

21 4703(16))’’. 

22 (10) In section 120(h), strike ‘‘the Act approved 

23 July 30, 1947 (6 U.S.C., secs. 6–13),’’ and insert 

24 ‘‘chapter 93 of title 31, United States Code,’’. 

25 (11) In section 201(b)(5), strike ‘‘section 116 of’’. 
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1 (12) In section 202(h)(3), strike ‘‘section 

2 207(c)(1)’’ and insert ‘‘section 207(k)(1)’’. 

3 (13) In section 204(b), strike ‘‘such others pow4 ers’’ and insert ‘‘such other powers’’. 

5 (14) In section 206(e)(3)(D), strike ‘‘and’’ after 

6 the semicolon at the end. 

7 (15) In section 206(f)(1), strike ‘‘subsection 

8 (e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. 

9 (16) In section 206(g)(7)(D), strike ‘‘and sub10 section (1)’’. 

11 (17) In section 206(t)(2)(B), insert ‘‘regulations’’ 

12 after ‘‘as defined in’’. 

13 (18) In section 206(t)(2)(C), strike ‘‘material af14 fect’’ and insert ‘‘material effect’’. 

15 (19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ 

16 after the semicolon at the end. 

17 (20) In section 206A(a)(2)(A), strike ‘‘regulator 

18 agency’’ and insert ‘‘regulatory agency’’. 

19 (21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ 

20 after the semicolon at the end. 

21 (22) In the heading for subparagraph (A) of sec22 tion 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. 

23 (23) In section 207(f)(3)(A), strike ‘‘category or 

24 claimants’’ and insert ‘‘category of claimants’’. 
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1 (24) In section 209(a)(8), strike the period at the 

2 end and insert a semicolon. 

3 (25) In section 216(n), insert ‘‘any action’’ be4 fore ‘‘that is required’’. 

5 (26) In section 304(b)(3), strike ‘‘the affairs or 

6 such credit union’’ and insert ‘‘the affairs of such 

7 credit union’’. 

8 (27) In section 310, strike ‘‘section 102(e)’’ and 

9 insert ‘‘section 102(d)’’. 

10 SEC. 727. REPEAL OF OBSOLETE PROVISIONS OF THE BANK 

11 HOLDING COMPANY ACT OF 1956. 

12 (a) IN GENERAL.—Section 2 of the Bank Holding 

13 Company Act of 1956 (12 U.S.C. 1841) is amended—

14 (1) in subsection (c)(2), by striking subpara15 graphs (I) and (J); and 

16 (2) by striking subsection (m) and inserting the 

17 following: 

18 ‘‘(m) [Repealed]’’. 

19 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

20 Paragraphs (1) and (2) of section 4(h) of the Bank Holding 

21 Company Act of 1956 (12 U.S.C. 1843(h)) are each amend22 ed by striking ‘‘(G), (H), (I), or (J) of section 2(c)(2)’’ and 

23 inserting ‘‘(G), or (H) of section 2(c)(2)’’. 
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1 SEC. 728. DEVELOPMENT OF MODEL PRIVACY FORM. 

2 Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 

3 6803), as amended by section 609, is amended by adding 

4 at the end the following: 

5 ‘‘(e) MODEL FORMS.—

6 ‘‘(1) IN GENERAL.—The agencies referred to in 

7 section 504(a)(1) shall jointly develop a model form 

8 which may be used, at the option of the financial in9 stitution, for the provision of disclosures under this 

10 section. 

11 ‘‘(2) FORMAT.—A model form developed under 

12 paragraph (1) shall—

13 ‘‘(A) be comprehensible to consumers, with a 

14 clear format and design; 

15 ‘‘(B) provide for clear and conspicuous dis16 closures; 

17 ‘‘(C) enable consumers easily to identify the 

18 sharing practices of a financial institution and 

19 to compare privacy practices among financial 

20 institutions; and 

21 ‘‘(D) be succinct, and use an easily readable 

22 type font. 

23 ‘‘(3) TIMING.—A model form required to be de24 veloped by this subsection shall be issued in proposed 

25 form for public comment not later than 180 days 

26 after the date of enactment of this subsection. 
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1 ‘‘(4) SAFE HARBOR.—Any financial institution 

2 that elects to provide the model form developed by the 

3 agencies under this subsection shall be deemed to be 

4 in compliance with the disclosures required under this 

5 section.’’. 

6 TITLE VIII—FAIR DEBT COLLEC7 TION PRACTICES ACT AMEND8 MENTS 

9 SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCE10 MENT PROGRAMS. 

11 (a) IN GENERAL.—The Fair Debt Collection Practices 

12 Act (15 U.S.C. 1692 et seq.) is amended—

13 (1) by redesignating section 818 as section 819; 

14 and 

15 (2) by inserting after section 817 the following: 

16 ‘‘§ 818. Exception for certain bad check enforcement 

17 programs operated by private entities 

18 ‘‘(a) IN GENERAL.—

19 ‘‘(1) TREATMENT OF CERTAIN PRIVATE ENTI20 TIES.—Subject to paragraph (2), a private entity 

21 shall be excluded from the definition of a debt col22 lector, pursuant to the exception provided in section 

23 803(6), with respect to the operation by the entity of 

24 a program described in paragraph (2)(A) under a 

25 contract described in paragraph (2)(B). 
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1 ‘‘(2) CONDITIONS OF APPLICABILITY.—Para2 graph (1) shall apply if—

3 ‘‘(A) a State or district attorney establishes, 

4 within the jurisdiction of such State or district 

5 attorney and with respect to alleged bad check 

6 violations that do not involve a check described 

7 in subsection (b), a pretrial diversion program 

8 for alleged bad check offenders who agree to par9 ticipate voluntarily in such program to avoid 

10 criminal prosecution; 

11 ‘‘(B) a private entity, that is subject to an 

12 administrative support services contract with a 

13 State or district attorney and operates under the 

14 direction, supervision, and control of such State 

15 or district attorney, operates the pretrial diver16 sion program described in subparagraph (A); 

17 and 

18 ‘‘(C) in the course of performing duties dele19 gated to it by a State or district attorney under 

20 the contract, the private entity referred to in sub21 paragraph (B)—

22 ‘‘(i) complies with the penal laws of 

23 the State; 
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1 ‘‘(ii) conforms with the terms of the 

2 contract and directives of the State or dis3 trict attorney; 

4 ‘‘(iii) does not exercise independent 

5 prosecutorial discretion; 

6 ‘‘(iv) contacts any alleged offender re7 ferred to in subparagraph (A) for purposes 

8 of participating in a program referred to in 

9 such paragraph—

10 ‘‘(I) only as a result of any deter11 mination by the State or district attor12 ney that probable cause of a bad check 

13 violation under State penal law exists, 

14 and that contact with the alleged of15 fender for purposes of participation in 

16 the program is appropriate; and 

17 ‘‘(II) the alleged offender has 

18 failed to pay the bad check after de19 mand for payment, pursuant to State 

20 law, is made for payment of the check 

21 amount; 

22 ‘‘(v) includes as part of an initial 

23 written communication with an alleged of24 fender a clear and conspicuous statement 

25 that—
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1 ‘‘(I) the alleged offender may dis2 pute the validity of any alleged bad 

3 check violation; 

4 ‘‘(II) where the alleged offender 

5 knows, or has reasonable cause to be6 lieve, that the alleged bad check viola7 tion is the result of theft or forgery of 

8 the check, identity theft, or other fraud 

9 that is not the result of the conduct of 

10 the alleged offender, the alleged offender 

11 may file a crime report with the ap12 propriate law enforcement agency; and 

13 ‘‘(III) if the alleged offender noti14 fies the private entity or the district 

15 attorney in writing, not later than 30 

16 days after being contacted for the first 

17 time pursuant to clause (iv), that there 

18 is a dispute pursuant to this sub19 section, before further restitution efforts 

20 are pursued, the district attorney or an 

21 employee of the district attorney au22 thorized to make such a determination 

23 makes a determination that there is 

24 probable cause to believe that a crime 

25 has been committed; and 
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1 ‘‘(vi) charges only fees in connection 

2 with services under the contract that have 

3 been authorized by the contract with the 

4 State or district attorney. 

5 ‘‘(b) CERTAIN CHECKS EXCLUDED.—A check is de6 scribed in this subsection if the check involves, or is subse7 quently found to involve—

8 ‘‘(1) a postdated check presented in connection 

9 with a payday loan, or other similar transaction, 

10 where the payee of the check knew that the issuer had 

11 insufficient funds at the time the check was made, 

12 drawn, or delivered; 

13 ‘‘(2) a stop payment order where the issuer acted 

14 in good faith and with reasonable cause in stopping 

15 payment on the check; 

16 ‘‘(3) a check dishonored because of an adjustment 

17 to the issuer’s account by the financial institution 

18 holding such account without providing notice to the 

19 person at the time the check was made, drawn, or de20 livered; 

21 ‘‘(4) a check for partial payment of a debt where 

22 the payee had previously accepted partial payment 

23 for such debt; 

24 ‘‘(5) a check issued by a person who was not 

25 competent, or was not of legal age, to enter into a 
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1 legal contractual obligation at the time the check was 

2 made, drawn, or delivered; or 

3 ‘‘(6) a check issued to pay an obligation arising 

4 from a transaction that was illegal in the jurisdiction 

5 of the State or district attorney at the time the check 

6 was made, drawn, or delivered. 

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

8 following definitions shall apply: 

9 ‘‘(1) STATE OR DISTRICT ATTORNEY.—The term 

10 ‘State or district attorney’ means the chief elected or 

11 appointed prosecuting attorney in a district, county 

12 (as defined in section 2 of title 1, United States 

13 Code), municipality, or comparable jurisdiction, in14 cluding State attorneys general who act as chief elect15 ed or appointed prosecuting attorneys in a district, 

16 county (as so defined), municipality or comparable 

17 jurisdiction, who may be referred to by a variety of 

18 titles such as district attorneys, prosecuting attorneys, 

19 commonwealth’s attorneys, solicitors, county attor20 neys, and state’s attorneys, and who are responsible 

21 for the prosecution of State crimes and violations of 

22 jurisdiction-specific local ordinances. 

23 ‘‘(2) CHECK.—The term ‘check’ has the same 

24 meaning as in section 3(6) of the Check Clearing for 

25 the 21st Century Act. 
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1 ‘‘(3) BAD CHECK VIOLATION.—The term ‘bad 

2 check violation’ means a violation of the applicable 

3 State criminal law relating to the writing of dishon4 ored checks.’’. 

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

6 the Fair Debt Collection Practices Act (15 U.S.C. 1692 et 

7 seq.) is amended—

8 (1) by redesignating the item relating to section 

9 818 as section 819; and 

10 (2) by inserting after the item relating to section 

11 817 the following new item:

‘‘818. Exception for certain bad check enforcement programs operated by private 

entities.’’.

12 SEC. 802. OTHER AMENDMENTS. 

13 (a) LEGAL PLEADINGS.—Section 809 of the Fair Debt 

14 Collection Practices Act (15 U.S.C. 1692g) is amended by 

15 adding at the end the following new subsection: 

16 ‘‘(d) LEGAL PLEADINGS.—A communication in the 

17 form of a formal pleading in a civil action shall not be 

18 treated as an initial communication for purposes of sub19 section (a).’’. 

20 (b) NOTICE PROVISIONS.—Section 809 of the Fair 

21 Debt Collection Practices Act (15 U.S.C. 1692g) is amended 

22 by adding after subsection (d) (as added by subsection (a) 

23 of this section) the following new subsection: 
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1 ‘‘(e) NOTICE PROVISIONS.—The sending or delivery of 

2 any form or notice which does not relate to the collection 

3 of a debt and is expressly required by the Internal Revenue 

4 Code of 1986, title V of Gramm-Leach-Bliley Act, or any 

5 provision of Federal or State law relating to notice of data 

6 security breach or privacy, or any regulation prescribed 

7 under any such provision of law, shall not be treated as 

8 an initial communication in connection with debt collection 

9 for purposes of this section.’’. 

10 (c) ESTABLISHMENT OF RIGHT TO COLLECT WITHIN

11 THE FIRST 30 DAYS.—Section 809(b) of the Fair Debt Col12 lection Practices Act (15 U.S.C. 1692g(b)) is amended by 

13 adding at the end the following new sentences: ‘‘Collection 

14 activities and communications that do not otherwise violate 

15 this title may continue during the 30-day period referred 

16 to in subsection (a) unless the consumer has notified the 

17 debt collector in writing that the debt, or any portion of 

18 the debt, is disputed or that the consumer requests the name 

19 and address of the original creditor. Any collection activi20 ties and communication during the 30-day period may not 

21 overshadow or be inconsistent with the disclosure of the con22 sumer’s right to dispute the debt or request the name and 

23 address of the original creditor.’’.
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1 TITLE IX—CASH MANAGEMENT 

2 MODERNIZATION 

3 SEC. 901. COLLATERAL MODERNIZATION. 

4 (a) IN GENERAL.—Section 9301(2) of title 31, United 

5 States Code, is amended to read as follows: 

6 ‘‘(2) ‘eligible obligation’ means any security des7 ignated as acceptable in lieu of a surety bond by the 

8 Secretary of the Treasury.’’. 

9 (b) USE OF ELIGIBLE OBLIGATIONS INSTEAD OF SUR10 ETY BONDS.—Section 9303(a)(2) of title 31, United States 

11 Code, is amended to read as follows: 

12 ‘‘(2) as determined by the Secretary of the Treas13 ury, have a market value that is equal to or greater 

14 than the amount of the required surety bond; and’’. 

15 (c) TECHNICAL AMENDMENTS.—Section 9303 of title 

16 31, United States Code, is amended—

17 (1) in the section heading, by striking ‘‘Gov18 ernment obligations’’ and inserting ‘‘eligible 

19 obligations’’; 

20 (2) in subsection (f), by striking ‘‘Government 

21 obligations’’ and inserting ‘‘eligible obligations’’; 

22 (3) by striking ‘‘a Government obligation’’ each 

23 place that term appears and inserting ‘‘an eligible ob24 ligation’’; and 
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1 (4) by striking ‘‘Government obligation’’ each 

2 place that term appears and inserting ‘‘eligible obli3 gation’’. 

4 TITLE X—STUDIES AND 

5 REPORTS 

6 SEC. 1001. STUDY AND REPORT BY THE COMPTROLLER 

7 GENERAL ON THE CURRENCY TRANSACTION 

8 REPORT FILING SYSTEM. 

9 (a) IN GENERAL.—The Comptroller General of the 

10 United States shall conduct a study on the volume of cur11 rency transaction reports filed with the Secretary of the 

12 Treasury under section 5313(a) of title 31, United States 

13 Code. 

14 (b) PURPOSE.—The purpose of the study required 

15 under subsection (a) shall be—

16 (1) to evaluate, on the basis of actual filing data, 

17 patterns of currency transaction reports filed by de18 pository institutions of all sizes and locations; and 

19 (2) to identify whether and the extent to which 

20 the filing rules for currency transaction reports de21 scribed in section 5313(a) of title 31, United States 

22 Code—

23 (A) are burdensome; and 

24 (B) can or should be modified to reduce 

25 such burdens without harming the usefulness of 
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1 such filing rules to Federal, State, and local 

2 anti-terrorism, law enforcement, and regulatory 

3 operations. 

4 (c) PERIOD COVERED.—The study required under sub5 section (a) shall cover the period beginning at least 3 cal6 endar years prior to the date of enactment of this section. 

7 (d) CONTENT.—The study required under subsection 

8 (a) shall include a detailed evaluation of—

9 (1) the extent to which depository institutions 

10 are availing themselves of the exemption system for 

11 the filing of currency transaction reports set forth in 

12 section 103.22(d) of title 31, Code of Federal Regula13 tions, as in effect during the study period (in this sec14 tion referred to as the ‘‘exemption system’’), including 

15 specifically, for the study period—

16 (A) the number of currency transaction re17 ports filed (out of the total annual numbers) in18 volving companies that are listed on the New 

19 York Stock Exchange or the NASDAQ National 

20 Market; 

21 (B) the number of currency transaction re22 ports filed by the 100 largest depository institu23 tions in the United States by asset size, and 

24 thereafter in tiers of 100, by asset size; 
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1 (C) the number of currency transaction re2 ports filed by the 200 smallest depository institu3 tions in the United States, including the number 

4 of such currency transaction reports involving 

5 companies listed on the New York Stock Ex6 change or the NASDAQ National Market; and 

7 (D) the number of currency transaction re8 ports that would have been filed during the filing 

9 period if the exemption system had been used by 

10 all depository institutions in the United States; 

11 (2) what types of depository institutions are 

12 using the exemption system, and the extent to which 

13 such exemption system is used; 

14 (3) difficulties that limit the willingness or abil15 ity of depository institutions to reduce their currency 

16 transaction reports reporting burden by making use 

17 of the exemption system, including considerations of 

18 cost, especially in the case of small depository institu19 tions; 

20 (4) the extent to which bank examination dif21 ficulties have limited the use of the exemption system, 

22 especially with respect to—

23 (A) the exemption of privately-held compa24 nies permitted under such exemption system; 

25 and 
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1 (B) whether, on a sample basis, the reaction 

2 of bank examiners to implementation of such ex3 emption system is justified or inhibits use of 

4 such exemption system without an offsetting 

5 compliance benefit; 

6 (5) ways to improve the use of the exemption 

7 system by depository institutions, including making 

8 such exemption system mandatory in order to reduce 

9 the volume of currency transaction reports unneces10 sarily filed; and 

11 (6) the usefulness of currency transaction reports 

12 filed to law enforcement agencies, taking into ac13 count—

14 (A) advances in information technology; 

15 (B) the impact, including possible loss of 

16 investigative data, that various changes in the 

17 exemption system would have on the usefulness of 

18 such currency transaction reports; and 

19 (C) changes that could be made to the ex20 emption system without affecting the usefulness 

21 of currency transaction reports. 

22 (e) ASSISTANCE.—The Secretary of the Treasury shall 

23 provide such information processing and other assistance, 

24 including from the Commissioner of the Internal Revenue 

25 Service and the Director of the Financial Crimes Enforce-
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1 ment Network, to the Comptroller General in analyzing cur2 rency transaction report filings for the study period de3 scribed in subsection (c), as is necessary to provide the in4 formation required by subsection (a). 

5 (f) VIEWS.—The study required under subsection (a) 

6 shall, if appropriate, include a discussion of the views of 

7 a representative sample of Federal, State, and local law en8 forcement and regulatory officials and officials of deposi9 tory institutions of all sizes. 

10 (g) RECOMMENDATIONS.—The study required under 

11 subsection (a) shall, if appropriate, include recommenda12 tions for changes to the exemption system that would reflect 

13 a reduction in unnecessary cost to depository institutions, 

14 assuming reasonably full implementation of such exemption 

15 system, without reducing the usefulness of the currency 

16 transaction report filing system to anti-terrorism, law en17 forcement, and regulatory operations. 

18 (h) REPORT.—Not later than 15 months after the date 

19 of enactment of this section, the Comptroller General shall 

20 submit a report on the study required under subsection (a) 

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

22 of the Senate and the Committee on Financial Services of 

23 the House of Representatives. 
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1 SEC. 1002. STUDY AND REPORT ON INSTITUTION DIVERSITY 

2 AND CONSOLIDATION. 

3 (a) STUDY.—The Comptroller General of the United 

4 States shall conduct a study regarding—

5 (1) the vast diversity in the size and complexity 

6 of institutions in the banking and financial services 

7 sector, including the differences in capital, market 

8 share, geographical limitations, product offerings, and 

9 general activities; 

10 (2) the differences in powers among the deposi11 tory institution charters, including—

12 (A) identification of the historical trends in 

13 the evolution of depository institution charters; 

14 (B) an analysis of the impact of charter dif15 ferences to the overall safety and soundness of the 

16 banking industry, and the effectiveness of the ap17 plicable depository institution regulator; and 

18 (C) an analysis of the impact that the 

19 availability of options for depository institution 

20 charters on the development of the banking in21 dustry; 

22 (3) the impact that differences of size and overall 

23 complexity among financial institutions makes with 

24 respect to regulatory oversight, efficiency, safety and 

25 soundness, and charter options for financial institu26 tions; and 
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1 (4) the aggregate cost and breakdown associated 

2 with regulatory compliance for banks, savings asso3 ciations, credit unions, or any other financial institu4 tion, including potential disproportionate impact that 

5 the cost of compliance may pose on smaller institu6 tions, given the percentage of personnel that the insti7 tution must dedicate solely to compliance. 

8 (b) CONSIDERATIONS.—In conducting the study under 

9 subsection (a), the Comptroller General shall consider the 

10 efficacy and efficiency of the consolidation of financial reg11 ulators, as well as charter simplification and homogeni12 zation. 

13 (c) REPORT.—Not later than 1 year after the date of 

14 enactment of this Act, the Comptroller General of the United 

15 States shall submit a report to the Committee on Banking, 

16 Housing, and Urban Affairs of the Senate and the Com17 mittee on Financial Services of the House of Representa18 tives on the results of the study required by this section.

Attest:

Clerk. 

109TH CONGRESS 

2D SESSION S. 2856

AMENDMENT