`[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2856 Placed on Calendar Senate (PCS)]







                                                       Calendar No. 437
109th CONGRESS
  2d Session
                                S. 2856

                          [Report No. 109-256]

   To provide regulatory relief and improve productivity for insured 
            depository institutions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2006

 Mr. Crapo, from the Committee on Banking, Housing, and Urban Affairs, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL


 
   To provide regulatory relief and improve productivity for insured 
            depository institutions, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Financial Services 
Regulatory Relief Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                         TITLE I--BROKER RELIEF

Sec. 101. Rulemaking required for revised definition of broker in the 
                            Securities Exchange Act of 1934.
                  TITLE II--MONETARY POLICY PROVISIONS

Sec. 201. Authorization for the Federal reserve to pay interest on 
                            reserves.
Sec. 202. Increased flexibility for the Federal Reserve Board to 
                            establish reserve requirements.
                  TITLE III--NATIONAL BANK PROVISIONS

Sec. 301. Voting in shareholder elections.
Sec. 302. Simplifying dividend calculations for national banks.
Sec. 303. Repeal of obsolete limitation on removal authority of the 
                            Comptroller of the Currency.
Sec. 304. Repeal of obsolete provision in the Revised Statutes.
                TITLE IV--SAVINGS ASSOCIATION PROVISIONS

Sec. 401. Parity for savings associations under the Securities Exchange 
                            Act of 1934 and the Investment Advisers Act 
                            of 1940.
Sec. 402. Repeal of overlapping rules governing purchased mortgage 
                            servicing rights.
Sec. 403. Clarifying citizenship of Federal savings associations for 
                            Federal court jurisdiction.
Sec. 404. Repeal of limitation on loans to one borrower.
                    TITLE V--CREDIT UNION PROVISIONS

Sec. 501. Leases of land on Federal facilities for credit unions.
Sec. 502. Increase in general 12-year limitation of term of Federal 
                            credit union loans to 15 years.
Sec. 503. Check cashing and money transfer services offered within the 
                            field of membership.
Sec. 504. Clarification of definition of net worth under certain 
                            circumstances for purposes of prompt 
                            corrective action.
              TITLE VI--DEPOSITORY INSTITUTION PROVISIONS

Sec. 601. Reporting requirements relating to insider lending.
Sec. 602. Investments by insured savings associations in bank service 
                            companies authorized.
Sec. 603. Authorization for member bank to use pass-through reserve 
                            accounts.
Sec. 604. Streamlining reports of condition.
Sec. 605. Expansion of eligibility for 18-month examination schedule 
                            for community banks.
Sec. 606. Streamlining depository institution merger application 
                            requirements.
Sec. 607. Nonwaiver of privileges.
Sec. 608. Clarification of application requirements for optional 
                            conversion for Federal savings 
                            associations.
Sec. 609. Exemption from disclosure of privacy policy for accounting 
                            firms.
Sec. 610. Inflation adjustment for the small depository institution 
                            exception under the Depository Institution 
                            Management Interlocks Act.
Sec. 611. Modification to cross marketing restrictions.
                  TITLE VII--BANKING AGENCY PROVISIONS

Sec. 701. Statute of limitations for judicial review of appointment of 
                            a receiver for depository institutions.
Sec. 702. Enhancing the safety and soundness of insured depository 
                            institutions.
Sec. 703. Cross guarantee authority.
Sec. 704. Golden parachute authority and nonbank holding companies.
Sec. 705. Amendments relating to change in bank control.
Sec. 706. Amendment to provide the Federal Reserve Board with 
                            discretion concerning the imputation of 
                            control of shares of a company by trustees.
Sec. 707. Interagency data sharing.
Sec. 708. Clarification of extent of suspension, removal, and 
                            prohibition authority of Federal banking 
                            agencies in cases of certain crimes by 
                            institution-affiliated parties.
Sec. 709. Protection of confidential information received by Federal 
                            banking regulators from foreign banking 
                            supervisors.
Sec. 710. Prohibition on participation by convicted individuals.
Sec. 711. Coordination of State examination authority.
Sec. 712. Deputy Director; succession authority for Director of the 
                            Office of Thrift Supervision.
Sec. 713. Office of Thrift Supervision representation on Basel 
                            Committee on Banking Supervision.
Sec. 714. Federal Financial Institutions Examination Council.
Sec. 715. Technical amendments relating to insured institutions.
Sec. 716. Clarification of enforcement authority.
Sec. 717. Federal banking agency authority to enforce deposit insurance 
                            conditions.
Sec. 718. Receiver or conservator consent requirement.
Sec. 719. Acquisition of FICO scores.
Sec. 720. Elimination of criminal indictments against receiverships.
Sec. 721. Resolution of deposit insurance disputes.
Sec. 722. Recordkeeping.
Sec. 723. Preservation of records.
Sec. 724. Technical amendments to information sharing provision in the 
                            Federal Deposit Insurance Act.
Sec. 725. Technical and conforming amendments relating to banks 
                            operating under the Code of Law for the 
                            District of Columbia.
Sec. 726. Technical corrections to the Federal Credit Union Act.
Sec. 727. Repeal of obsolete provisions of the Bank Holding Company Act 
                            of 1956.
Sec. 728. Development of model privacy forms.
       TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS

Sec. 801. Exception for certain bad check enforcement programs.
                TITLE IX--CASH MANAGEMENT MODERNIZATION

Sec. 901. Collateral modernization.
                      TITLE X--STUDIES AND REPORTS

Sec. 1001. Study and report by the Comptroller General on the currency 
                            transaction report filing system.
Sec. 1002. Study and report on institution diversity and consolidation.

                         TITLE I--BROKER RELIEF

SEC. 101. RULEMAKING REQUIRED FOR REVISED DEFINITION OF BROKER IN THE 
              SECURITIES EXCHANGE ACT OF 1934.

    (a) Final Rules Required.--
            (1) Amendment to securities exchange act.--Section 3(a)(4) 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)) is 
        amended by adding at the end the following:
                    ``(F) Rulemaking required.--The Commission shall, 
                by rule, implement the exceptions in subparagraph 
                (B).''.
            (2) Timing.--Not later than 180 days after the date of 
        enactment of this Act, the Securities and Exchange Commission 
        (in this section referred to as the ``Commission'') shall issue 
        proposed rules to define the term ``broker'' in accordance with 
        section 3(a)(4) of the Securities Exchange Act of 1934, as 
        amended by this subsection.
            (3) Rulemaking supersedes previous rulemaking.--A final 
        rule issued in accordance with this section shall supersede any 
        other proposed or final rule issued by the Commission with 
        regard to the exceptions to the definition of a broker under 
        section 3(a)(4)(B) of the Securities Exchange Act of 1934, on 
        or after the date of enactment of section 201 of the Gramm-
        Leach-Bliley Act. No such other rule, whether or not issued in 
        final form, shall have any force or effect on or after that 
        date of enactment.
    (b) Consultation.--Prior to issuing the final rule required by this 
section, the Commission shall consult with and seek the concurrence of 
the Federal banking agencies concerning the content of such rulemaking 
in implementing section 3(a)(4)(B) of the Securities Exchange Act of 
1934, as amended by this section and section 201 of the Gramm-Leach-
Bliley Act.
    (c) Agency Objections to Commission Rule.--
            (1) Filing of petition for review.--
                    (A) In general.--Any Federal banking agency may 
                obtain review of any final rule issued under this 
                section in the United States Court of Appeals for the 
                District of Columbia Circuit by filing in such court, 
                not later than 60 days after the date of publication of 
                the final rule, a written petition requesting that the 
                rule be set aside.
                    (B) Expedited process.--Any proceeding to challenge 
                such a rule commenced under subparagraph (A) shall be 
                expedited by the Court of Appeals.
            (2) Transmittal of petition and record.--
                    (A) Submission to clerk.--A copy of a petition 
                described in paragraph (1) shall be transmitted as soon 
                as possible by the Clerk of the Court to an officer or 
                employee of the Commission designated for that purpose.
                    (B) Filing of petition.--Upon receipt of a petition 
                under subparagraph (A), the Commission shall file with 
                the court the rule under review and any documents 
                referred to therein, and any other relevant materials 
                prescribed by the court.
            (3) Exclusive jurisdiction.--On the date of the filing of a 
        petition under paragraph (1), the court has jurisdiction, which 
        becomes exclusive on the filing of the materials set forth in 
        paragraph (2), to affirm and enforce or to set aside the rule 
        at issue.
            (4) Standard of review.--The court shall determine to 
        affirm and enforce or set aside a rule of the Commission under 
        this subsection, based on the determination of the court as to 
        whether the rule is consistent with the purposes and language 
        of section 3(a)(4)(B) of the Securities Exchange Act of 1934, 
        as amended by section 201 of the Gramm-Leach-Bliley Act, and 
        appropriate in light of the history, purpose, and extent of the 
        rule under the Federal securities laws and the Federal banking 
        laws, giving deference neither to the views of the Commission 
        nor of the Federal banking agencies.
            (5) Judicial stay.--The filing of a petition by a Federal 
        banking agency under paragraph (1) shall operate as a judicial 
        stay, until the date on which the determination of the court is 
        final (including any appeal of such determination).
    (d) Definition.--For purposes of this section, the term ``Federal 
banking agencies'' means the Board of Governors of the Federal Reserve 
System, the Office of the Comptroller of the Currency, the Office of 
Thrift Supervision, and the Federal Deposit Insurance Corporation.

                  TITLE II--MONETARY POLICY PROVISIONS

SEC. 201. AUTHORIZATION FOR THE FEDERAL RESERVE TO PAY INTEREST ON 
              RESERVES.

    (a) In General.--Section 19(b) of the Federal Reserve Act (12 
U.S.C. 461(b)) is amended by adding at the end the following:
            ``(12) Earnings on balances.--
                    ``(A) In general.--Balances maintained at a Federal 
                Reserve bank by or on behalf of a depository 
                institution may receive earnings to be paid by the 
                Federal Reserve bank at least once each calendar 
                quarter, at a rate or rates not to exceed the general 
                level of short-term interest rates.
                    ``(B) Regulations relating to payments and 
                distributions.--The Board may prescribe regulations 
                concerning--
                            ``(i) the payment of earnings in accordance 
                        with this paragraph;
                            ``(ii) the distribution of such earnings to 
                        the depository institutions which maintain 
                        balances at such banks, or on whose behalf such 
                        balances are maintained; and
                            ``(iii) the responsibilities of depository 
                        institutions, Federal Home Loan Banks, and the 
                        National Credit Union Administration Central 
                        Liquidity Facility with respect to the 
                        crediting and distribution of earnings 
                        attributable to balances maintained, in 
                        accordance with subsection (c)(1)(A), in a 
                        Federal Reserve bank by any such entity on 
                        behalf of depository institutions.
                    ``(C) Depository institutions defined.--For 
                purposes of this paragraph, the term `depository 
                institution', in addition to the institutions described 
                in paragraph (1)(A), includes any trust company, 
                corporation organized under section 25A or having an 
                agreement with the Board under section 25, or any 
                branch or agency of a foreign bank (as defined in 
                section 1(b) of the International Banking Act of 
                1978).''.
    (b) Conforming Amendment.--Section 19 of the Federal Reserve Act 
(12 U.S.C. 461) is amended-
            (1) in subsection (b)(4)--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively; and
            (2) in subsection (c)(1)(A), by striking ``subsection 
        (b)(4)(C)'' and inserting ``subsection (b)''.

SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RESERVE BOARD TO 
              ESTABLISH RESERVE REQUIREMENTS.

    Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C. 
461(b)(2)(A)) is amended--
            (1) in clause (i), by striking ``the ratio of 3 per 
        centum'' and inserting ``a ratio of not greater than 3 percent 
        (and which may be zero)''; and
            (2) in clause (ii), by striking ``and not less than 8 per 
        centum,'' and inserting ``(and which may be zero),''.

                  TITLE III--NATIONAL BANK PROVISIONS

SEC. 301. VOTING IN SHAREHOLDER ELECTIONS.

    Section 5144 of the Revised Statutes of the United States (12 
U.S.C. 61) is amended--
            (1) by striking ``or to cumulate'' and inserting ``or, if 
        so provided by the articles of association of the national 
        bank, to cumulate''; and
            (2) by striking the comma after ``his shares shall equal''.

SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL BANKS.

    (a) In General.--Section 5199 of the Revised Statutes of the United 
States (12 U.S.C. 60) is amended to read as follows:

``SEC. 5199. NATIONAL BANK DIVIDENDS.

    ``(a) In General.--Subject to subsection (b), the directors of any 
national bank may declare a dividend of so much of the undivided 
profits of the bank as the directors judge to be expedient.
    ``(b) Approval Required Under Certain Circumstances.--A national 
bank may not declare and pay dividends in any year in excess of an 
amount equal to the sum of the total of the net income of the bank for 
that year and the retained net income of the bank for the preceding 2 
years, minus the sum of any transfers required by the Comptroller of 
the Currency and any transfers required to be made to a fund for the 
retirement of any preferred stock, unless the Comptroller of the 
Currency approves the declaration and payment of dividends in excess of 
such amount.''.
    (b) Clerical Amendment.--The table of sections for chapter three of 
title LXII of the Revised Statutes of the United States is amended by 
striking the item relating to section 5199 and inserting the following:

``5199. National bank dividends.''.

SEC. 303. REPEAL OF OBSOLETE LIMITATION ON REMOVAL AUTHORITY OF THE 
              COMPTROLLER OF THE CURRENCY.

    Section 8(e)(4) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(e)(4)) is amended by striking the 5th sentence.

SEC. 304. REPEAL OF OBSOLETE PROVISION IN THE REVISED STATUTES.

    Section 5143 of the Revised Statutes of the United States (12 
U.S.C. 59) is amended to read as follows:

``SEC. 5143. REDUCTION OF CAPITAL.

    ``(a) In General.--Subject to the approval of the Comptroller of 
the Currency, a national banking association may, by a vote of 
shareholders owning, in the aggregate, two-thirds of its capital stock, 
reduce its capital.
    ``(b) Shareholder Distributions Authorized.--As part of its capital 
reduction plan approved in accordance with subsection (a), and with the 
affirmative vote of shareholders owning at least two thirds of the 
shares of each class of its stock outstanding (each voting as a class), 
a national banking association may distribute cash or other assets to 
its shareholders.''.

                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.

    (a) Securities Exchange Act of 1934.--
            (1) Definition of bank.--Section 3(a)(6) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended--
                    (A) in subparagraph (A), by inserting ``or a 
                Federal savings association, as defined in section 2(5) 
                of the Home Owners' Loan Act'' after ``a banking 
                institution organized under the laws of the United 
                States''; and
                    (B) in subparagraph (C)--
                            (i) by inserting ``or savings association, 
                        as defined in section 2(4) of the Home Owners' 
                        Loan Act'' after ``banking institution''; and
                            (ii) by inserting ``or savings 
                        associations'' after ``having supervision over 
                        banks''.
            (2) Inclusion of ots under the definition of appropriate 
        regulatory agency for certain purposes.--Section 3(a)(34) of 
        the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)) is 
        amended--
                    (A) in subparagraph (A)--
                            (i) in clause (ii), by striking ``(i) or 
                        (iii)'' and inserting ``(i), (iii), or (iv)'';
                            (ii) in clause (iii), by striking ``and'' 
                        at the end;
                            (iii) by redesignating clause (iv) as 
                        clause (v); and
                            (iv) by inserting after clause (iii) the 
                        following:
                            ``(iv) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))), the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation, a 
                        subsidiary or a department or division of any 
                        such savings association, or a savings and loan 
                        holding company; and'';
                    (B) in subparagraph (B)--
                            (i) in clause (ii), by striking ``(i) or 
                        (iii)'' and inserting ``(i), (iii), or (iv)'';
                            (ii) in clause (iii), by striking ``and'' 
                        at the end;
                            (iii) by redesignating clause (iv) as 
                        clause (v); and
                            (iv) by inserting after clause (iii) the 
                        following:
                            ``(iv) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))), the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation, or a 
                        subsidiary of any such savings association, or 
                        a savings and loan holding company; and'';
                    (C) in subparagraph (C)--
                            (i) in clause (ii), by striking ``(i) or 
                        (iii)'' and inserting ``(i), (iii), or (iv)'';
                            (ii) in clause (iii), by striking ``and'' 
                        at the end;
                            (iii) by redesignating clause (iv) as 
                        clause (v); and
                            (iv) by inserting after clause (iii) the 
                        following:
                            ``(iv) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))), the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation, a 
                        savings and loan holding company, or a 
                        subsidiary of a savings and loan holding 
                        company when the appropriate regulatory agency 
                        for such clearing agency is not the Commission; 
                        and'';
                    (D) in subparagraph (D)--
                            (i) in clause (ii), by striking ``and'' at 
                        the end;
                            (ii) by redesignating clause (iii) as 
                        clause (iv); and
                            (iii) by inserting after clause (ii) the 
                        following:
                            ``(iii) the Director of the Office of 
                        Thrift Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))) the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation; 
                        and'';
                    (E) in subparagraph (F)--
                            (i) by redesignating clauses (ii), (iii), 
                        and (iv) as clauses (iii), (iv), and (v), 
                        respectively; and
                            (ii) by inserting after clause (i) the 
                        following:
                            ``(ii) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))), the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation; 
                        and'';
                    (F) by moving subparagraph (H) and inserting such 
                subparagraph immediately after subparagraph (G); and
                    (G) by adding at the end of the undesignated matter 
                at the end the following: ``As used in this paragraph, 
                the term `savings and loan holding company' has the 
                same meaning as in section 10(a) of the Home Owners' 
                Loan Act (12 U.S.C. 1467a(a)).''.
            (3) Conforming exemption to reporting requirement.--Section 
        23(b)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78w(b)(1)) is amended by inserting ``other than the Office of 
        Thrift Supervision,'' before ``shall each''.
    (b) Investment Advisers Act of 1940.--
            (1) Definition of bank.--Section 202(a)(2) of the 
        Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(2)) is 
        amended--
                    (A) in subparagraph (A), by inserting ``or a 
                Federal savings association, as defined in section 2(5) 
                of the Home Owners' Loan Act'' after ``a banking 
                institution organized under the laws of the United 
                States''; and
                    (B) in subparagraph (C)--
                            (i) by inserting ``, savings association, 
                        as defined in section 2(4) of the Home Owners' 
                        Loan Act,'' after ``banking institution''; and
                            (ii) by inserting ``or savings 
                        associations'' after ``having supervision over 
                        banks''.
            (2) Conforming amendments.--Section 210A of the Investment 
        Advisers Act of 1940 (15 U.S.C. 80b-10a) is amended in each of 
        subsections (a)(1)(A)(i), (a)(1)(B), (a)(2), and (b), by 
        striking ``bank holding company'' each place that term appears 
        and inserting ``bank holding company or savings and loan 
        holding company''.
    (c) Conforming Amendment to the Investment Company Act of 1940.--
Section 10(c) of the Investment Company Act of 1940 (15 U.S.C. 80a-
10(c)) is amended by inserting after ``1956)'' the following: ``or any 
one savings and loan holding company, together with its affiliates and 
subsidiaries (as such terms are defined in section 10 of the Home 
Owners' Loan Act),''.

SEC. 402. REPEAL OF OVERLAPPING RULES GOVERNING PURCHASED MORTGAGE 
              SERVICING RIGHTS.

    Section 5(t) of the Home Owners' Loan Act (12 U.S.C. 1464(t)) is 
amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) [Repealed].''; and
            (2) in paragraph (9)(A), by striking ``intangible assets, 
        plus'' and all that follows through the period at the end and 
        inserting ``intangible assets.''.

SEC. 403. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS ASSOCIATIONS FOR 
              FEDERAL COURT JURISDICTION.

    Section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) is amended 
by adding at the end the following:
    ``(x) Home State Citizenship.--In determining whether a Federal 
court has diversity jurisdiction over a case in which a Federal savings 
association is a party, the Federal savings association shall be 
considered to be a citizen only of the State in which such savings 
association has its home office.''.

SEC. 404. REPEAL OF LIMITATION ON LOANS TO ONE BORROWER.

    Section 5(u)(2)(A) of the Home Owners' Loan Act (12 U.S.C. 
1464(u)(2)(A)) is amended--
            (1) in clause (i)--
                    (A) by striking ``for any'' and inserting ``For 
                any''; and
                    (B) by striking ``; or'' and inserting a period; 
                and
            (2) in clause (ii)--
                    (A) by striking ``to develop domestic'' and 
                inserting ``To develop domestic'';
                    (B) by striking subclause (I); and
                    (C) by redesignating subclauses (II) through (V) as 
                subclauses (I) through (IV), respectively.

                    TITLE V--CREDIT UNION PROVISIONS

SEC. 501. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT UNIONS.

    (a) In General.--Section 124 of the Federal Credit Union Act (12 
U.S.C. 1770) is amended--
            (1) by striking ``Upon application by any credit union'' 
        and inserting ``Notwithstanding any other provision of law, 
        upon application by any credit union'';
            (2) by inserting ``on lands reserved for the use of, and 
        under the exclusive or concurrent jurisdiction of, the United 
        States or'' after ``officer or agency of the United States 
        charged with the allotment of space'';
            (3) by inserting ``lease land or'' after ``such officer or 
        agency may in his or its discretion''; and
            (4) by inserting ``or the facility built on the lease 
        land'' after ``credit union to be served by the allotment of 
        space''.
    (b) Clerical Amendment.--The section heading for section 124 of the 
Federal Credit Union Act (12 U.S.C. 1770) is amended by inserting ``or 
federal land'' after ``buildings''.

SEC. 502. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF FEDERAL 
              CREDIT UNION LOANS TO 15 YEARS.

    Section 107(5) of the Federal Credit Union Act (12 U.S.C. 1757(5)) 
is amended in the matter preceding subparagraph (A), by striking ``to 
make loans, the maturities of which shall not exceed twelve years'' and 
inserting ``to make loans, the maturities of which shall not exceed 15 
years,''.

SEC. 503. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED WITHIN THE 
              FIELD OF MEMBERSHIP.

    Section 107(12) of the Federal Credit Union Act (12 U.S.C. 
1757(12)) is amended to read as follows:
            ``(12) in accordance with regulations prescribed by the 
        Board--
                    ``(A) to sell, to persons in the field of 
                membership, negotiable checks (including travelers 
                checks), money orders, and other similar money transfer 
                instruments (including international and domestic 
                electronic fund transfers); and
                    ``(B) to cash checks and money orders and receive 
                international and domestic electronic fund transfers 
                for persons in the field of membership for a fee;''.

SEC. 504. CLARIFICATION OF DEFINITION OF NET WORTH UNDER CERTAIN 
              CIRCUMSTANCES FOR PURPOSES OF PROMPT CORRECTIVE ACTION.

    Section 216(o)(2)(A) of the Federal Credit Union Act (12 U.S.C. 
1790d(o)(2)(A)) is amended--
            (1) by inserting ``the'' before ``retained earnings 
        balance''; and
            (2) by inserting ``, together with any amounts that were 
        previously retained earnings of any other credit union with 
        which the credit union has combined'' before the semicolon at 
        the end.

              TITLE VI--DEPOSITORY INSTITUTION PROVISIONS

SEC. 601. REPORTING REQUIREMENTS RELATING TO INSIDER LENDING.

    (a) Reporting Requirements Regarding Loans to Executive Officers of 
Member Banks.--Section 22(g) of the Federal Reserve Act (12 U.S.C. 
375a) is amended--
            (1) by striking paragraphs (6) and (9); and
            (2) by redesignating paragraphs (7), (8), and (10) as 
        paragraphs (6), (7), and (8), respectively.
    (b) Reporting Requirements Regarding Loans From Correspondent Banks 
to Executive Officers and Shareholders of Insured Banks.--Section 
106(b)(2) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 
1972(2)) is amended--
            (1) by striking subparagraph (G); and
            (2) by redesignating subparagraphs (H) and (I) as 
        subparagraphs (G) and (H), respectively.

SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK SERVICE 
              COMPANIES AUTHORIZED.

    (a) In General.--Sections 2 and 3 of the Bank Service Company Act 
(12 U.S.C. 1862, 1863) are each amended by striking ``insured bank'' 
each place that term appears and inserting ``insured depository 
institution''.
    (b) Technical and Conforming Amendments.--
            (1) Bank service company act definitions.--Section 1(b) of 
        the Bank Service Company Act (12 U.S.C. 1861(b)) is amended--
                    (A) in paragraph (4)--
                            (i) by inserting ``, except when such term 
                        appears in connection with the term `insured 
                        depository institution','' after ``means''; and
                            (ii) by striking ``Federal Home Loan Bank 
                        Board'' and inserting ``Director of the Office 
                        of Thrift Supervision'';
                    (B) by striking paragraph (5) and inserting the 
                following:
            ``(5) Insured depository institution.--The term `insured 
        depository institution' has the same meaning as in section 3(c) 
        of the Federal Deposit Insurance Act;'';
                    (C) by striking ``and'' at the end of paragraph 
                (7);
                    (D) by striking the period at the end of paragraph 
                (8) and inserting ``; and'';
                    (E) by adding at the end the following:
            ``(9) the terms `State depository institution', `Federal 
        depository institution', `State savings association' and 
        `Federal savings association' have the same meanings as in 
        section 3 of the Federal Deposit Insurance Act.'';
                    (F) in paragraph (2), in subparagraphs (A)(ii) and 
                (B)(ii), by striking ``insured banks'' each place that 
                term appears and inserting ``insured depository 
                institutions''; and
                    (G) in paragraph (8)--
                            (i) by striking ``insured bank'' and 
                        inserting ``insured depository institution'';
                            (ii) by striking ``insured banks'' each 
                        place that term appears and inserting ``insured 
                        depository institutions''; and
                            (iii) by striking ``the bank's'' and 
                        inserting ``the depository institution's''.
            (2) Amount of investment.--Section 2 of the Bank Service 
        Company Act (12 U.S.C. 1862) is amended by inserting ``or 
        savings associations, other than the limitation on the amount 
        of investment by a Federal savings association contained in 
        section 5(c)(4)(B) of the Home Owners' Loan Act'' after 
        ``relating to banks''.
            (3) Location of services.--Section 4 of the Bank Service 
        Company Act (12 U.S.C. 1864) is amended--
                    (A) in subsection (b), by inserting ``as 
                permissible under subsection (c), (d), or (e) or'' 
                after ``Except'';
                    (B) in subsection (c), by inserting ``or State 
                savings association'' after ``State bank'' each place 
                that term appears;
                    (C) in subsection (d), by inserting ``or Federal 
                savings association'' after ``national bank'' each 
                place that term appears;
                    (D) by striking subsection (e) and inserting the 
                following:
    ``(e) Performance Where State Bank and National Bank Are 
Shareholders or Members.--A bank service company may perform--
            ``(1) only those services that each depository institution 
        shareholder or member is otherwise authorized to perform under 
        any applicable Federal or State law; and
            ``(2) such services only at locations in a State in which 
        each such shareholder or member is authorized to perform such 
        services.''; and
                    (E) in subsection (f), by inserting ``or savings 
                associations'' after ``location of banks''.
            (4) Prior approval of investments.--Section 5 of the Bank 
        Service Company Act (12 U.S.C. 1865) is amended--
                    (A) in subsection (a)--
                            (i) by striking ``insured bank'' and 
                        inserting ``insured depository institution''; 
                        and
                            (ii) by striking ``bank's''; and
                            (iii) by inserting before the period ``for 
                        the insured depository institution'';
                    (B) in subsection (b)--
                            (i) by striking ``insured bank'' and 
                        inserting ``insured depository institution'';
                            (ii) by inserting ``authorized only'' after 
                        ``performs any service''; and
                            (iii) by inserting ``authorized only'' 
                        after ``perform any activity''; and
                    (C) in subsection (c)--
                            (i) by striking ``the bank or banks'' and 
                        inserting ``any insured depository 
                        institution''; and
                            (ii) by striking ``capability of the bank'' 
                        and inserting ``capability of the insured 
                        depository institution''.
            (5) Regulation and examination.--Section 7 of the Bank 
        Service Company Act (12 U.S.C. 1867) is amended--
                    (A) in subsection (b), by striking ``insured bank'' 
                and inserting ``insured depository institution''; and
                    (B) in subsection (c)--
                            (i) by striking ``a bank'' each place that 
                        term appears and inserting ``a depository 
                        institution''; and
                            (ii) by striking ``the bank'' each place 
                        that term appears and inserting ``the 
                        depository institution''.

SEC. 603. AUTHORIZATION FOR MEMBER BANK TO USE PASS-THROUGH RESERVE 
              ACCOUNTS.

    Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C. 
461(c)(1)(B)) is amended by striking ``which is not a member bank''.

SEC. 604. STREAMLINING REPORTS OF CONDITION.

    Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)) is amended by adding at the end the following:
            ``(11) Streamlining reports of condition.--
                    ``(A) Review of information and schedules.--Before 
                the end of the 1-year period beginning on the date of 
                enactment of the Financial Services Regulatory Relief 
                Act of 2006 and before the end of each 5-year period 
                thereafter, each Federal banking agency shall, in 
                conjunction with the other relevant Federal banking 
                agencies, review the information and schedules that are 
                required to be filed by an insured depository 
                institution in a report of condition required under 
                paragraph (3).
                    ``(B) Reduction or elimination of information found 
                to be unnecessary.--After completing the review 
                required by subparagraph (A), a Federal banking agency, 
                in conjunction with the other relevant Federal banking 
                agencies, shall reduce or eliminate any requirement to 
                file information or schedules under paragraph (3) 
                (other than information or schedules that are otherwise 
                required by law) if the agency determines that the 
                continued collection of such information or schedules 
                is no longer necessary or appropriate.''.

SEC. 605. EXPANSION OF ELIGIBILITY FOR 18-MONTH EXAMINATION SCHEDULE 
              FOR COMMUNITY BANKS.

    Section 10(d)(4)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)(4)(A)) is amended by striking ``$250,000,000'' and inserting 
``$500,000,000''.

SEC. 606. STREAMLINING DEPOSITORY INSTITUTION MERGER APPLICATION 
              REQUIREMENTS.

    (a) In General.--Section 18(c)(4) of the Federal Deposit Insurance 
Act (12 U.S.C. 1828(c)(4)) is amended to read as follows:
            ``(4) Reports on competitive factors.--
                    ``(A) Request for report.--In the interests of 
                uniform standards and subject to subparagraph (B), 
                before acting on any application for approval of a 
                merger transaction, the responsible agency shall--
                            ``(i) request a report on the competitive 
                        factors involved from the Attorney General of 
                        the United States; and
                            ``(ii) provide a copy of the request to the 
                        Corporation (when the Corporation is not the 
                        responsible agency).
                    ``(B) Furnishing of report.--The report requested 
                under subparagraph (A) shall be furnished by the 
                Attorney General to the responsible agency--
                            ``(i) not later than 30 calendar days after 
                        the date on which the Attorney General received 
                        the request; or
                            ``(ii) not later than 10 calendar days 
                        after such date, if the requesting agency 
                        advises the Attorney General that an emergency 
                        exists requiring expeditious action.
                    ``(C) Exceptions.--A responsible agency may not be 
                required to request a report under subparagraph (A) 
                if--
                            ``(i) the responsible agency finds that it 
                        must act immediately in order to prevent the 
                        probable failure of 1 of the insured depository 
                        institutions involved in the merger 
                        transaction; or
                            ``(ii) the merger transaction involves 
                        solely an insured depository institution and 1 
                        or more of the affiliates of such depository 
                        institution.''.
    (b) Technical and Conforming Amendments.--Section 18(c)(6) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended--
            (1) in the second sentence, by striking ``banks or savings 
        associations involved and reports on the competitive factors 
        have'' and inserting ``insured depository institutions 
        involved, or if the proposed merger transaction is solely 
        between an insured depository institution and 1 or more of its 
        affiliates, and the report on the competitive factors has''; 
        and
            (2) by striking the penultimate sentence and inserting the 
        following: ``If the agency has advised the Attorney General 
        under paragraph (4)(B)(ii) of the existence of an emergency 
        requiring expeditious action and has requested a report on the 
        competitive factors within 10 days, the transaction may not be 
        consummated before the fifth calendar day after the date of 
        approval by the agency.''.

SEC. 607. NONWAIVER OF PRIVILEGES.

    (a) Insured Depository Institutions.--Section 18 of the Federal 
Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end 
the following:
    ``(x) Privileges Not Affected by Disclosure to Banking Agency or 
Supervisor.--
            ``(1) In general.--The submission by any person of any 
        information to any Federal banking agency, State bank 
        supervisor, or foreign banking authority for any purpose in the 
        course of any supervisory or regulatory process of such agency, 
        supervisor, or authority shall not be construed as waiving, 
        destroying, or otherwise affecting any privilege such person 
        may claim with respect to such information under Federal or 
        State law as to any person or entity other than such agency, 
        supervisor, or authority.
            ``(2) Rule of construction.--No provision of paragraph (1) 
        may be construed as implying or establishing that--
                    ``(A) any person waives any privilege applicable to 
                information that is submitted or transferred under any 
                circumstance to which paragraph (1) does not apply; or
                    ``(B) any person would waive any privilege 
                applicable to any information by submitting the 
                information to any Federal banking agency, State bank 
                supervisor, or foreign banking authority, but for this 
                subsection.''
    (b) Insured Credit Unions.--Section 205 of the Federal Credit Union 
Act (12 U.S.C.1785) is amended by adding at the end the following:
    ``(j) Privileges Not Affected by Disclosure to Banking Agency or 
Supervisor.--
            ``(1) In general.--The submission by any person of any 
        information to the Administration, any State credit union 
        supervisor, or foreign banking authority for any purpose in the 
        course of any supervisory or regulatory process of such Board, 
        supervisor, or authority shall not be construed as waiving, 
        destroying, or otherwise affecting any privilege such person 
        may claim with respect to such information under Federal or 
        State law as to any person or entity other than such Board, 
        supervisor, or authority.
            ``(2) Rule of construction.--No provision of paragraph (1) 
        may be construed as implying or establishing that--
                    ``(A) any person waives any privilege applicable to 
                information that is submitted or transferred under any 
                circumstance to which paragraph (1) does not apply; or
                    ``(B) any person would waive any privilege 
                applicable to any information by submitting the 
                information to the Administration, any State credit 
                union supervisor, or foreign banking authority, but for 
                this subsection.''.

SEC. 608. CLARIFICATION OF APPLICATION REQUIREMENTS FOR OPTIONAL 
              CONVERSION FOR FEDERAL SAVINGS ASSOCIATIONS.

    (a) Home Owners' Loan Act.--Section 5(i)(5) of the Home Owners' 
Loan Act (12 U.S.C. 1464(i)(5)) is amended to read as follows:
            ``(5) Conversion to national or state bank.--
                    ``(A) In general.--Any Federal savings association 
                chartered and in operation before the date of enactment 
                of the Gramm-Leach-Bliley Act, with branches in 
                operation before such date of enactment in 1 or more 
                States, may convert, at its option, with the approval 
                of the Comptroller of the Currency for each national 
                bank, and with the approval of the appropriate State 
                bank supervisor and the appropriate Federal banking 
                agency for each State bank, into 1 or more national or 
                State banks, each of which may encompass 1 or more of 
                the branches of the Federal savings association in 
                operation before such date of enactment in 1 or more 
                States subject to subparagraph (B).
                    ``(B) Conditions of conversion.--The authority in 
                subparagraph (A) shall apply only if each resulting 
                national or State bank--
                            ``(i) will meet all financial, management, 
                        and capital requirements applicable to the 
                        resulting national or State bank; and
                            ``(ii) if more than 1 national or State 
                        bank results from a conversion under this 
                        subparagraph, has received approval from the 
                        Federal Deposit Insurance Corporation under 
                        section 5(a) of the Federal Deposit Insurance 
                        Act.
                    ``(C) No merger application under fdia required.--
                No application under section 18(c) of the Federal 
                Deposit Insurance Act shall be required for a 
                conversion under this paragraph.
                    ``(D) Definitions.--For purposes of this paragraph, 
                the terms `State bank' and `State bank supervisor' have 
                the same meanings as in section 3 of the Federal 
                Deposit Insurance Act.''.
    (b) Federal Deposit Insurance Act.--Section 4(c) of the Federal 
Deposit Insurance Act (12 U.S.C. 1814(c)) is amended--
            (1) by inserting ``of this Act and section 5(i)(5) of the 
        Home Owners' Loan Act'' after ``Subject to section 5(d)''; and
            (2) in paragraph (2), after ``insured State,'' by inserting 
        ``or Federal''.

SEC. 609. EXEMPTION FROM DISCLOSURE OF PRIVACY POLICY FOR ACCOUNTANTS.

    (a) In General.--Section 503 of the Gramm-Leach-Bliley Act (15 
U.S.C. 6803) is amended by adding at the end the following:
    ``(d) Exemption for Certified Public Accountants.--
            ``(1) In general.--The disclosure requirements of 
        subsection (a) do not apply to any person, to the extent that 
        the person is--
                    ``(A) a certified public accountant;
                    ``(B) certified or licensed for such purpose by a 
                State; and
                    ``(C) subject to any provision of law, rule, or 
                regulation issued by a legislative or regulatory body 
                of the State, including rules of professional conduct 
                or ethics, that prohibits disclosure of nonpublic 
                personal information without the knowing and expressed 
                consent of the consumer.
            ``(2) Limitation.--Nothing in this subsection shall be 
        construed to exempt or otherwise exclude any financial 
        institution that is affiliated or becomes affiliated with a 
        certified public accountant described in paragraph (1) from any 
        provision of this section.
            ``(3) Definitions.--For purposes of this subsection, the 
        term `State' means any State or territory of the United States, 
        the District of Columbia, Puerto Rico, Guam, American Samoa, 
        the Trust Territory of the Pacific Islands, the Virgin Islands, 
        or the Northern Mariana Islands.''.
    (b) Clerical Amendments.--Section 503 of the Gramm-Leach-Bliley Act 
(15 U.S.C. 6803) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) in subsection (a), by striking ``Such disclosures'' and 
        inserting the following:
    ``(b) Regulations.--Disclosures required by subsection (a)''.

SEC. 610. INFLATION ADJUSTMENT FOR THE SMALL DEPOSITORY INSTITUTION 
              EXCEPTION UNDER THE DEPOSITORY INSTITUTION MANAGEMENT 
              INTERLOCKS ACT.

    Section 203(1) of the Depository Institution Management Interlocks 
Act (12 U.S.C. 3202(1)) is amended by striking ``$20,000,000'' and 
inserting ``$50,000,000''.

SEC. 611. MODIFICATION TO CROSS MARKETING RESTRICTIONS.

    Section 4(n)(5)(B) of the Bank Holding Company Act of 1956 (12 
U.S.C. 1843(n)(5)(B)) is amended by striking ``subsection (k)(4)(I)'' 
and inserting ``subparagraph (H) or (I) of subsection (k)(4)''.

                  TITLE VII--BANKING AGENCY PROVISIONS

SEC. 701. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW OF APPOINTMENT OF 
              A RECEIVER FOR DEPOSITORY INSTITUTIONS.

    (a) National Banks.--Section 2 of the National Bank Receivership 
Act (12 U.S.C. 191) is amended--
            (1) by amending the section heading to read as follows:

``SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL BANK.

    ``(a) In General.--The Comptroller of the Currency''; and
            (2) by adding at the end the following:
    ``(b) Judicial Review.--If the Comptroller of the Currency appoints 
a receiver under subsection (a), the national bank may, within 30 days 
thereafter, bring an action in the United States district court for the 
judicial district in which the home office of such bank is located, or 
in the United States District Court for the District of Columbia, for 
an order requiring the Comptroller of the Currency to remove the 
receiver, and the court shall, upon the merits, dismiss such action or 
direct the Comptroller of the Currency to remove the receiver.''.
    (b) Insured Depository Institutions.--Section 11(c)(7) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(c)(7)) is amended to read 
as follows:
            ``(7) Judicial review.--If the Corporation is appointed 
        (including the appointment of the Corporation as receiver by 
        the Board of Directors) as conservator or receiver of a 
        depository institution under paragraph (4), (9), or (10), the 
        depository institution may, not later than 30 days thereafter, 
        bring an action in the United States district court for the 
        judicial district in which the home office of such depository 
        institution is located, or in the United States District Court 
        for the District of Columbia, for an order requiring the 
        Corporation to be removed as the conservator or receiver 
        (regardless of how such appointment was made), and the court 
        shall, upon the merits, dismiss such action or direct the 
        Corporation to be removed as the conservator or receiver.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to conservators or receivers appointed on or 
after the date of enactment of this Act.

SEC. 702. ENHANCING THE SAFETY AND SOUNDNESS OF INSURED DEPOSITORY 
              INSTITUTIONS.

    (a) Clarification Relating to the Enforceability of Agreements and 
Conditions.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) 
is amended by adding at the end the following:

``SEC. 49. ENFORCEMENT OF AGREEMENTS.

    ``(a) In General.--Notwithstanding clause (i) or (ii) of section 
8(b)(6)(A) or section 38(e)(2)(E)(i), the appropriate Federal banking 
agency for a depository institution may enforce, under section 8, the 
terms of--
            ``(1) any condition imposed in writing by the agency on the 
        depository institution or an institution-affiliated party in 
        connection with any action on any application, notice, or other 
        request concerning the depository institution; or
            ``(2) any written agreement entered into between the agency 
        and the depository institution or an institution-affiliated 
        party.
    ``(b) Receiverships and Conservatorships.--After the appointment of 
the Corporation as the receiver or conservator for a depository 
institution, the Corporation may enforce any condition or agreement 
described in paragraph (1) or (2) of subsection (a) imposed on or 
entered into with such institution or institution-affiliated party 
through an action brought in an appropriate United States district 
court.''.
    (b) Protection of Capital of Insured Depository Institutions.--
Section 18(u)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(u)(1)) is amended--
            (1) by striking subparagraph (B);
            (2) by redesignating subparagraph (C) as subparagraph (B); 
        and
            (3) in subparagraph (A), by adding ``and'' at the end.
    (c) Conforming Amendments.--Section 8(b) of the Federal Deposit 
Insurance Act (12 U.S.C. 1818(b)) is amended--
            (1) in paragraph (3), by striking ``This subsection and 
        subsections (c) through (s) and subsection (u) of this 
        section'' and inserting ``This subsection, subsections (c) 
        through (s) and subsection (u) of this section, and section 49 
        of this Act''; and
            (2) in paragraph (4), by striking ``This subsection and 
        subsections (c) through (s) and subsection (u) of this 
        section'' and inserting ``This subsection, subsections (c) 
        through (s) and subsection (u) of this section, and section 49 
        of this Act''.

SEC. 703. CROSS GUARANTEE AUTHORITY.

    Section 5(e)(9)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1815(e)(9)(A)) is amended to read as follows:
                    ``(A) such institutions are controlled by the same 
                company; or''.

SEC. 704. GOLDEN PARACHUTE AUTHORITY AND NONBANK HOLDING COMPANIES.

    Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(k)) is amended--
            (1) in paragraph (2)(A), by striking ``or depository 
        institution holding company'' and inserting ``or covered 
        company'';
            (2) in paragraph (2), by striking subparagraph (B), and 
        inserting the following:
                    ``(B) Whether there is a reasonable basis to 
                believe that the institution-affiliated party is 
                substantially responsible for--
                            ``(i) the insolvency of the depository 
                        institution or covered company;
                            ``(ii) the appointment of a conservator or 
                        receiver for the depository institution; or
                            ``(iii) the troubled condition of the 
                        depository institution (as defined in the 
                        regulations prescribed pursuant to section 
                        32(f)).'';
            (3) in paragraph (2)(F), by striking ``depository 
        institution holding company'' and inserting ``covered 
        company,'';
            (4) in paragraph (3) in the matter preceding subparagraph 
        (A), by striking ``depository institution holding company'' and 
        inserting ``covered company'';
            (5) in paragraph (3)(A), by striking ``holding company'' 
        and inserting ``covered company'';
            (6) in paragraph (4)(A)--
                    (A) by striking ``depository institution holding 
                company'' each place that term appears and inserting 
                ``covered company''; and
                    (B) by striking ``holding company'' each place that 
                term appears (other than in connection with the term 
                referred to in subparagraph (A)) and inserting 
                ``covered company'';
            (7) in paragraph (5)(A), by striking ``depository 
        institution holding company'' and inserting ``covered 
        company'';
            (8) in paragraph (5), by adding at the end the following:
                    ``(D) Covered company.--The term `covered company' 
                means any depository institution holding company 
                (including any company required to file a report under 
                section 4(f)(6) of the Bank Holding Company Act of 
                1956), or any other company that controls an insured 
                depository institution.''; and
            (9) in paragraph (6)--
                    (A) by striking ``depository institution holding 
                company'' and inserting ``covered company,''; and
                    (B) by striking ``or holding company'' and 
                inserting ``or covered company''.

SEC. 705. AMENDMENTS RELATING TO CHANGE IN BANK CONTROL.

    Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(j)) is amended--
            (1) in paragraph (1)(D)--
                    (A) by striking ``is needed to investigate'' and 
                inserting ``is needed--
                            ``(i) to investigate'';
                    (B) by striking ``United States Code.'' and 
                inserting ``United States Code; or''; and
                    (C) by adding at the end the following:
                            ``(ii) to analyze the safety and soundness 
                        of any plans or proposals described in 
                        paragraph (6)(E) or the future prospects of the 
                        institution.''; and
            (2) in paragraph (7)(C), by striking ``the financial 
        condition of any acquiring person'' and inserting ``either the 
        financial condition of any acquiring person or the future 
        prospects of the institution''.

SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD WITH 
              DISCRETION CONCERNING THE IMPUTATION OF CONTROL OF SHARES 
              OF A COMPANY BY TRUSTEES.

    Section 2(g)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(g)(2)) is amended by inserting before the period at the end ``, 
unless the Board determines that such treatment is not appropriate in 
light of the facts and circumstances of the case and the purposes of 
this Act''.

SEC. 707. INTERAGENCY DATA SHARING.

    (a) Federal Banking Agencies.--Section 7(a)(2) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(a)(2)) is amended by adding at 
the end the following:
                    ``(C) Data sharing with other agencies and 
                persons.--In addition to reports of examination, 
                reports of condition, and other reports required to be 
                regularly provided to the Corporation (with respect to 
                all insured depository institutions, including a 
                depository institution for which the Corporation has 
                been appointed conservator or receiver) or an 
                appropriate State bank supervisor (with respect to a 
                State depository institution) under subparagraph (A) or 
                (B), a Federal banking agency may, in the discretion of 
                the agency, furnish any report of examination or other 
                confidential supervisory information concerning any 
                depository institution or other entity examined by such 
                agency under authority of any Federal law, to--
                            ``(i) any other Federal or State agency or 
                        authority with supervisory or regulatory 
                        authority over the depository institution or 
                        other entity;
                            ``(ii) any officer, director, or receiver 
                        of such depository institution or entity; and
                            ``(iii) any other person that the Federal 
                        banking agency determines to be appropriate.''.
    (b) National Credit Union Administration.--Section 202(a) of the 
Federal Credit Union Act (12 U.S.C. 1782(a)) is amended by adding at 
the end the following:
            ``(8) Data sharing with other agencies and persons.--In 
        addition to reports of examination, reports of condition, and 
        other reports required to be regularly provided to the Board 
        (with respect to all insured credit unions, including a credit 
        union for which the Corporation has been appointed conservator 
        or liquidating agent) or an appropriate State commission, 
        board, or authority having supervision of a State-chartered 
        credit union, the Board may, in the discretion of the Board, 
        furnish any report of examination or other confidential 
        supervisory information concerning any credit union or other 
        entity examined by the Board under authority of any Federal 
        law, to--
                    ``(A) any other Federal or State agency or 
                authority with supervisory or regulatory authority over 
                the credit union or other entity;
                    ``(B) any officer, director, or receiver of such 
                credit union or entity; and
                    ``(C) any other person that the Board determines to 
                be appropriate.''.

SEC. 708. CLARIFICATION OF EXTENT OF SUSPENSION, REMOVAL, AND 
              PROHIBITION AUTHORITY OF FEDERAL BANKING AGENCIES IN 
              CASES OF CERTAIN CRIMES BY INSTITUTION-AFFILIATED 
              PARTIES.

    (a) Insured Depository Institutions.--
            (1) In general.--Section 8(g)(1) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1818(g)(1)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``is charged in any 
                        information, indictment, or complaint, with the 
                        commission of or participation in'' and 
                        inserting ``is the subject of any information, 
                        indictment, or complaint, involving the 
                        commission of or participation in'';
                            (ii) by striking ``may pose a threat to the 
                        interests of the depository institution's 
                        depositors or may threaten to impair public 
                        confidence in the depository institution,'' and 
                        insert ``posed, poses, or may pose a threat to 
                        the interests of the depositors of, or 
                        threatened, threatens, or may threaten to 
                        impair public confidence in, any relevant 
                        depository institution (as defined in 
                        subparagraph (E)),''; and
                            (iii) by striking ``affairs of the 
                        depository institution'' and inserting 
                        ``affairs of any depository institution'';
                    (B) in subparagraph (B)(i), by striking ``the 
                depository institution'' and inserting ``any depository 
                institution that the subject of the notice is 
                affiliated with at the time the notice is issued'';
                    (C) in subparagraph (C)(i)--
                            (i) by striking ``may pose a threat to the 
                        interests of the depository institution's 
                        depositors or may threaten to impair public 
                        confidence in the depository institution,'' and 
                        insert ``posed, poses, or may pose a threat to 
                        the interests of the depositors of, or 
                        threatened, threatens, or may threaten to 
                        impair public confidence in, any relevant 
                        depository institution (as defined in 
                        subparagraph (E)),''; and
                            (ii) by striking ``affairs of the 
                        depository institution'' and inserting 
                        ``affairs of any depository institution'';
                    (D) in subparagraph (C)(ii), by striking ``affairs 
                of the depository institution'' and inserting ``affairs 
                of any depository institution'';
                    (E) in subparagraph (D)(i), by striking ``the 
                depository institution'' and inserting ``any depository 
                institution that the subject of the order is affiliated 
                with at the time the order is issued''; and
                    (F) by adding at the end the following:
                    ``(E) Relevant depository institution.--For 
                purposes of this subsection, the term `relevant 
                depository institution' means any depository 
                institution of which the party is or was an 
                institution-affiliated party at the time at which--
                            ``(i) the information, indictment, or 
                        complaint described in subparagraph (A) was 
                        issued; or
                            ``(ii) the notice is issued under 
                        subparagraph (A) or the order is issued under 
                        subparagraph (C)(i).''.
            (2) Clerical amendment.--The subsection heading for section 
        8(g) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g)) 
        is amended to read as follows:
    ``(g) Suspension, Removal, and Prohibition From Participation 
Orders in the Case of Certain Criminal Offenses.--''.
    (b) Insured Credit Unions.--
            (1) In general.--Section 206(i)(1) of the Federal Credit 
        Union Act (12 U.S.C. 1786(i)(1)) is amended--
                    (A) in subparagraph (A), by striking ``the credit 
                union'' each place that term appears and inserting 
                ``any credit union'';
                    (B) in subparagraph (B)(i), by inserting ``of which 
                the subject of the order is, or most recently was, an 
                institution-affiliated party'' before the period at the 
                end;
                    (C) in subparagraph (C)--
                            (i) by striking ``the credit union'' each 
                        place such term appears and inserting ``any 
                        credit union''; and
                            (ii) by striking ``the credit union's'' and 
                        inserting ``any credit union's'';
                    (D) in subparagraph (D)(i), by striking ``upon such 
                credit union'' and inserting ``upon the credit union of 
                which the subject of the order is, or most recently 
                was, an institution-affiliated party''; and
                    (E) by adding at the end the following:
                    ``(E) Continuation of authority.--The Board may 
                issue an order under this paragraph with respect to an 
                individual who is an institution-affiliated party at a 
                credit union at the time of an offense described in 
                subparagraph (A) without regard to--
                            ``(i) whether such individual is an 
                        institution-affiliated party at any credit 
                        union at the time the order is considered or 
                        issued by the Board; or
                            ``(ii) whether the credit union at which 
                        the individual was an institution-affiliated 
                        party at the time of the offense remains in 
                        existence at the time the order is considered 
                        or issued by the Board.''.
            (2) Clerical amendment.--Section 206(i) of the Federal 
        Credit Union Act (12 U.S.C. 1786(i)) is amended by striking 
        ``(i)'' at the beginning and inserting the following:
    ``(i) Suspension, Removal, and Prohibition From Participation 
Orders in the Case of Certain Criminal Offenses.--''.

SEC. 709. PROTECTION OF CONFIDENTIAL INFORMATION RECEIVED BY FEDERAL 
              BANKING REGULATORS FROM FOREIGN BANKING SUPERVISORS.

    Section 15 of the International Banking Act of 1978 (12 U.S.C. 
3109) is amended by adding at the end the following:
    ``(c) Confidential Information Received From Foreign Supervisors.--
            ``(1) In general.--Except as provided in paragraph (3), a 
        Federal banking agency may not be compelled to disclose 
        information received from a foreign regulatory or supervisory 
        authority if--
                    ``(A) the Federal banking agency determines that 
                the foreign regulatory or supervisory authority has, in 
                good faith, determined and represented in writing to 
                such Federal banking agency that public disclosure of 
                the information would violate the laws applicable to 
                that foreign regulatory or supervisory authority; and
                    ``(B) the relevant Federal banking agency obtained 
                such information pursuant to--
                            ``(i) such procedures as the Federal 
                        banking agency may establish for use in 
                        connection with the administration and 
                        enforcement of Federal banking laws; or
                            ``(ii) a memorandum of understanding or 
                        other similar arrangement between the Federal 
                        banking agency and the foreign regulatory or 
                        supervisory authority.
            ``(2) Treatment under title 5, united states code.--For 
        purposes of section 552 of title 5, United States Code, this 
        subsection shall be treated as a statute described in 
        subsection (b)(3)(B) of such section.
            ``(3) Savings provision.--No provision of this section 
        shall be construed as--
                    ``(A) authorizing any Federal banking agency to 
                withhold any information from any duly authorized 
                committee of the House of Representatives or the 
                Senate; or
                    ``(B) preventing any Federal banking agency from 
                complying with an order of a court of the United States 
                in an action commenced by the United States or such 
                agency.
            ``(4) Federal banking agency defined.--For purposes of this 
        subsection, the term `Federal banking agency' means the Board, 
        the Comptroller of the Currency, the Federal Deposit Insurance 
        Corporation, and the Director of the Office of Thrift 
        Supervision.''.

SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED INDIVIDUALS.

    (a) Extension of Automatic Prohibition.--Section 19 of the Federal 
Deposit Insurance Act (12 U.S.C. 1829) is amended by adding at the end 
the following:
    ``(d) Bank Holding Companies.--Subsections (a) and (b) shall apply 
to any company (other than a foreign bank) that is a bank holding 
company and any organization organized and operated under section 25A 
of the Federal Reserve Act or operating under section 25 of the Federal 
Reserve Act, as if such bank holding company or organization were an 
insured depository institution, except that such subsections shall be 
applied for purposes of this subsection by substituting `Board of 
Governors of the Federal Reserve System' for `Corporation' each place 
that term appears in such subsections.
    ``(e) Savings and Loan Holding Companies.--Subsections (a) and (b) 
shall apply to any savings and loan holding company and any subsidiary 
(other than a savings association) of a savings and loan holding 
company as if such savings and loan holding company or subsidiary were 
an insured depository institution, except that subsections shall be 
applied for purposes of this subsection by substituting `Director of 
the Office of Thrift Supervision' for `Corporation' each place that 
term appears in such subsections.''.
    (b) Enhanced Discretion to Remove Convicted Individuals.--Section 
8(e)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(e)(2)(A)) is amended--
            (1) by striking ``or'' at the end of clause (ii);
            (2) by striking the comma at the end of clause (iii) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(iv) an institution-affiliated party of a 
                        subsidiary (other than a bank) of a bank 
                        holding company has been convicted of any 
                        criminal offense involving dishonesty or a 
                        breach of trust, or a criminal violation of 
                        section 1956, 1957, or 1960 of title 18 United 
                        States Code, or has agreed to enter into a 
                        pretrial diversion or similar program in 
                        connection with a prosecution for such an 
                        offense,''.

SEC. 711. COORDINATION OF STATE EXAMINATION AUTHORITY.

    Section 10(h) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(h)) is amended to read as follows:
    ``(h) Coordination of Examination Authority.--
            ``(1) State bank supervisors of home and host states.--
                    ``(A) Home state of bank.--The appropriate State 
                bank supervisor of the home State of an insured State 
                bank has authority to examine and supervise the bank.
                    ``(B) Host state branches.--The State bank 
                supervisor of the home State of an insured State bank 
                and any State bank supervisor of an appropriate host 
                State shall exercise its respective authority to 
                supervise and examine the branches of the bank in a 
                host State in accordance with the terms of any 
                applicable cooperative agreement between the home State 
                bank supervisor and the State bank supervisor of the 
                relevant host State.
                    ``(C) Supervisory fees.--Except as expressly 
                provided in a cooperative agreement between the State 
                bank supervisors of the home State and any host State 
                of an insured State bank, only the State bank 
                supervisor of the home State of an insured State bank 
                may levy or charge State supervisory fees on the bank.
            ``(2) Host state examination.--
                    ``(A) In general.--With respect to a branch 
                operated in a host State by an out-of-State insured 
                State bank that resulted from an interstate merger 
                transaction approved under section 44, or that was 
                established in such State pursuant to section 5155(g) 
                of the Revised Statutes of the United States, the third 
                undesignated paragraph of section 9 of the Federal 
                Reserve Act or section 18(d)(4) of this Act, the 
                appropriate State bank supervisor of such host State 
                may--
                            ``(i) with written notice to the State bank 
                        supervisor of the bank's home State and subject 
                        to the terms of any applicable cooperative 
                        agreement with the State bank supervisor of 
                        such home State, examine such branch for the 
                        purpose of determining compliance with host 
                        State laws that are applicable pursuant to 
                        section 24(j), including those that govern 
                        community reinvestment, fair lending, and 
                        consumer protection; and
                            ``(ii) if expressly permitted under and 
                        subject to the terms of a cooperative agreement 
                        with the State bank supervisor of the bank's 
                        home State or if such out-of-State insured 
                        State bank has been determined to be in a 
                        troubled condition by either the State bank 
                        supervisor of the bank's home State or the 
                        bank's appropriate Federal banking agency, 
                        participate in the examination of the bank by 
                        the State bank supervisor of the bank's home 
                        State to ascertain that the activities of the 
                        branch in such host State are not conducted in 
                        an unsafe or unsound manner.
                    ``(B) Notice of determination.--
                            ``(i) In general.--The State bank 
                        supervisor of the home State of an insured 
                        State bank shall notify the State bank 
                        supervisor of each host State of the bank if 
                        there has been a final determination that the 
                        bank is in a troubled condition.
                            ``(ii) Timing of notice.--The State bank 
                        supervisor of the home State of an insured 
                        State bank shall provide notice under clause 
                        (i) as soon as is reasonably possible, but in 
                        all cases not later than 15 business days after 
                        the date on which the State bank supervisor has 
                        made such final determination or has received 
                        written notification of such final 
                        determination.
            ``(3) Host state enforcement.--If the State bank supervisor 
        of a host State determines that a branch of an out-of-State 
        insured State bank is violating any law of the host State that 
        is applicable to such branch pursuant to section 24(j), 
        including a law that governs community reinvestment, fair 
        lending, or consumer protection, the State bank supervisor of 
        the host State or, to the extent authorized by the law of the 
        host State, a host State law enforcement officer may, with 
        written notice to the State bank supervisor of the bank's home 
        State and subject to the terms of any applicable cooperative 
        agreement with the State bank supervisor of the bank's home 
        State, undertake such enforcement actions and proceedings as 
        would be permitted under the law of the host State as if the 
        branch were a bank chartered by that host State.
            ``(4) Cooperative agreement.--
                    ``(A) In general.--The State bank supervisors from 
                2 or more States may enter into cooperative agreements 
                to facilitate State regulatory supervision of State 
                banks, including cooperative agreements relating to the 
                coordination of examinations and joint participation in 
                examinations.
                    ``(B) Definition.--For purposes of this subsection, 
                the term `cooperative agreement' means a written 
                agreement that is signed by the home State bank 
                supervisor and the host State bank supervisor to 
                facilitate State regulatory supervision of State banks, 
                and includes nationwide or multi-state cooperative 
                agreements and cooperative agreements solely between 
                the home State and host State.
                    ``(C) Rule of construction.--Except for State bank 
                supervisors, no provision of this subsection relating 
                to such cooperative agreements shall be construed as 
                limiting in any way the authority of home State and 
                host State law enforcement officers, regulatory 
                supervisors, or other officials that have not signed 
                such cooperative agreements to enforce host State laws 
                that are applicable to a branch of an out-of-State 
                insured State bank located in the host State pursuant 
                to section 24(j).
            ``(5) Federal regulatory authority.--No provision of this 
        subsection shall be construed as limiting in any way the 
        authority of any Federal banking agency.
            ``(6) State taxation authority not affected.--No provision 
        of this subsection shall be construed as affecting the 
        authority of any State or political subdivision of any State to 
        adopt, apply, or administer any tax or method of taxation to 
        any bank, bank holding company, or foreign bank, or any 
        affiliate of any bank, bank holding company, or foreign bank, 
        to the extent that such tax or tax method is otherwise 
        permissible by or under the Constitution of the United States 
        or other Federal law.
            ``(7) Definitions.--For purpose of this section, the 
        following definitions shall apply:
                    ``(A) Host state, home state, out-of-state bank.--
                The terms `host State', `home State', and `out-of-State 
                bank' have the same meanings as in section 44(g).
                    ``(B) State supervisory fees.--The term `State 
                supervisory fees' means assessments, examination fees, 
                branch fees, license fees, and all other fees that are 
                levied or charged by a State bank supervisor directly 
                upon an insured State bank or upon branches of an 
                insured State bank.
                    ``(C) Troubled condition.--Solely for purposes of 
                paragraph (2)(B), an insured State bank has been 
                determined to be in `troubled condition' if the bank--
                            ``(i) has a composite rating, as determined 
                        in its most recent report of examination, of 4 
                        or 5 under the Uniform Financial Institutions 
                        Ratings System;
                            ``(ii) is subject to a proceeding initiated 
                        by the Corporation for termination or 
                        suspension of deposit insurance; or
                            ``(iii) is subject to a proceeding 
                        initiated by the State bank supervisor of the 
                        bank's home State to vacate, revoke, or 
                        terminate the charter of the bank, or to 
                        liquidate the bank, or to appoint a receiver 
                        for the bank.
                    ``(D) Final determination.--For purposes of 
                paragraph (2)(B), the term `final determination' means 
                the transmittal of a report of examination to the bank 
                or transmittal of official notice of proceedings to the 
                bank.''.

SEC. 712. DEPUTY DIRECTOR; SUCCESSION AUTHORITY FOR DIRECTOR OF THE 
              OFFICE OF THRIFT SUPERVISION.

    (a) Establishment of Position of Deputy Director.--Section 3(c)(5) 
of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(5)) is amended to read 
as follows:
            ``(5) Deputy director.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall appoint a Deputy Director, and may appoint not 
                more than 3 additional Deputy Directors of the Office.
                    ``(B) First deputy director.--If the Secretary of 
                the Treasury appoints more than 1 Deputy Director of 
                the Office, the Secretary shall designate one such 
                appointee as the First Deputy Director.
                    ``(C) Duties.--Each Deputy Director appointed under 
                this paragraph shall take an oath of office and perform 
                such duties as the Director shall direct.
                    ``(D) Compensation and benefits.--The Director 
                shall fix the compensation and benefits for each Deputy 
                Director in accordance with this Act.''.
    (b) Service of Deputy Director as Acting Director.--Section 3(c)(3) 
of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(3)) is amended--
            (1) by striking ``vacancy.--A vacancy in the position of 
        Director'' and inserting ``vacancy.--
                    ``(A) In general.--A vacancy in the position of 
                Director''; and
            (2) by adding at the end the following:
                    ``(B) Acting director.--
                            ``(i) In general.--In the event of a 
                        vacancy in the position of Director or during 
                        the absence or disability of the Director, the 
                        Deputy Director shall serve as Acting Director.
                            ``(ii) Succession in case of 2 or more 
                        deputy directors.--If there are 2 or more 
                        Deputy Directors serving at the time a vacancy 
                        in the position of Director occurs or the 
                        absence or disability of the Director 
                        commences, the First Deputy Director shall 
                        serve as Acting Director under clause (i) 
                        followed by such other Deputy Directors under 
                        any order of succession the Director may 
                        establish.
                            ``(iii) Authority of acting director.--Any 
                        Deputy Director, while serving as Acting 
                        Director under this subparagraph, shall be 
                        vested with all authority, duties, and 
                        privileges of the Director under this Act and 
                        any other provision of Federal law.''.

SEC. 713. OFFICE OF THRIFT SUPERVISION REPRESENTATION ON BASEL 
              COMMITTEE ON BANKING SUPERVISION.

    (a) In General.--Section 912 of the International Lending 
Supervision Act of 1983 (12 U.S.C. 3911) is amended--
            (1) in the section heading, by inserting at the end the 
        following: ``and the office of thrift supervision'';
            (2) by striking ``As one of the three'' and inserting the 
        following:
    ``(a) In General.--As one of the 4''; and
            (3) by adding at the end the following:
    ``(b) As one of the 4 Federal bank regulatory and supervisory 
agencies, the Office of Thrift Supervision shall be given equal 
representation with the Board of Governors of the Federal Reserve 
System, the Office of the Comptroller of the Currency, and the Federal 
Deposit Insurance Corporation on the Committee on Banking Regulations 
and Supervisory Practices of the Group of Ten Countries and 
Switzerland.''.
    (b) Conforming Amendments.--Section 910(a) of the International 
Lending Supervision Act of 1983 (12 U.S.C. 3909(a)) is amended--
            (1) in paragraph (2), by striking ``insured bank'' and 
        inserting ``insured depository institution''; and
            (2) in paragraph (3), by striking ``an `insured bank', as 
        such term is used in section 3(h)'' and inserting ``an `insured 
        depository institution', as such term is defined in section 
        3(c)(2)''.

SEC. 714. FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

    (a) Council Membership.--Section 1004(a) of the Federal Financial 
Institutions Examination Council Act of 1978 (12 U.S.C. 3303(a)) is 
amended--
            (1) in paragraph (4), by striking ``Thrift'' and all that 
        follows through the end of the paragraph and inserting ``Thrift 
        Supervision,'';
            (2) in paragraph (5) by striking the period at the end and 
        inserting ``, and''; and
            (3) by adding at the end the following:
            ``(6) the Chairman of the State Liaison Committee.''.
    (b) Chairperson of Liaison Committee.--Section 1007 of the Federal 
Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3306) 
is amended by adding at the end the following: ``Members of the Liaison 
Committee shall elect a chairperson from among the members serving on 
the committee.''.

SEC. 715. TECHNICAL AMENDMENTS RELATING TO INSURED INSTITUTIONS.

    (a) Technical Amendment to the Federal Deposit Insurance Act.--
Section 8(i)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(i)(3)) is amended by inserting ``or order'' after ``notice'' each 
place that term appears.
    (b) Technical Amendment to the Federal Credit Union Act.--Section 
206(k)(3) of the Federal Credit Union Act (12 U.S.C. 1786(k)(3)) is 
amended by inserting ``or order'' after ``notice'' each place that term 
appears.

SEC. 716. CLARIFICATION OF ENFORCEMENT AUTHORITY.

    (a) Actions on Applications, Notices, and Other Requests; 
Clarification That Change in Control Conditions Are Enforceable.--
Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is 
amended--
            (1) in subsection (b)(1), in the first sentence, by 
        striking ``the granting of any application or other request by 
        the depository institution'' and inserting ``any action on any 
        application, notice, or other request by the depository 
        institution or institution-affiliated party,'';
            (2) in subsection (e)(1)(A)(i)(III), by striking ``the 
        grant of any application or other request by such depository 
        institution'' and inserting ``any action on any application, 
        notice, or request by such depository institution or 
        institution-affiliated party''; and
            (3) in subsection (i)(2)(A)(iii), by striking ``the grant 
        of any application or other request by such depository 
        institution'' and inserting ``any action on any application, 
        notice, or other request by the depository institution or 
        institution-affiliated party''.
    (b) Clarification That Change in Control Conditions Are 
Enforceable.--Section 206 of the Federal Credit Union Act (12 U.S.C. 
1786) is amended--
            (1) in subsection (b)(1), in the first sentence, by 
        striking ``the granting of any application or other request by 
        the credit union'' and inserting ``any action on any 
        application, notice, or other request by the credit union or 
        institution-affiliated party,'';
            (2) in subsection (g)(1)(A)(i)(III), by striking ``the 
        grant of any application or other request by such credit 
        union'' and inserting ``any action on any application, notice, 
        or request by such credit union or institution-affiliated 
        party''; and
            (3) in subsection (k)(2)(A)(iii), by striking ``the grant 
        of any application or other request by such credit union'' and 
        inserting ``any action on any application, notice, or other 
        request by the credit union or institution-affiliated party''.

SEC. 717. FEDERAL BANKING AGENCY AUTHORITY TO ENFORCE DEPOSIT INSURANCE 
              CONDITIONS.

    Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is 
amended--
            (1) in subsection (b)(1), in the 1st sentence--
                    (A) by striking ``in writing by the agency'' and 
                inserting ``in writing by a Federal banking agency''; 
                and
                    (B) by striking ``the agency may issue and serve'' 
                and inserting ``the appropriate Federal banking agency 
                for the depository institution may issue and serve'';
            (2) in subsection (e)(1)--
                    (A) in subparagraph (A)(i)(III), by striking ``in 
                writing by the appropriate Federal banking agency'' and 
                inserting ``in writing by a Federal banking agency''; 
                and
                    (B) in the undesignated matter at the end, by 
                striking ``the agency may serve upon such party'' and 
                inserting ``the appropriate Federal banking agency for 
                the depository institution may serve upon such party''; 
                and
            (3) in subsection (i)(2)(A)(iii), by striking ``in writing 
        by the appropriate Federal banking agency'' and inserting ``in 
        writing by a Federal banking agency''.

SEC. 718. RECEIVER OR CONSERVATOR CONSENT REQUIREMENT.

    (a) Insured Depository Institutions.--Section 11(e)(13) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(13)) is amended by 
adding at the end the following:
                    ``(C) Consent requirement.--
                            ``(i) In general.--Except as otherwise 
                        provided by this section or section 15, no 
                        person may exercise any right or power to 
                        terminate, accelerate, or declare a default 
                        under any contract to which the depository 
                        institution is a party, or to obtain possession 
                        of or exercise control over any property of the 
                        institution or affect any contractual rights of 
                        the institution, without the consent of the 
                        conservator or receiver, as appropriate, during 
                        the 45-day period beginning on the date of the 
                        appointment of the conservator, or during the 
                        90-day period beginning on the date of the 
                        appointment of the receiver, as applicable.
                            ``(ii) Certain exceptions.--No provision of 
                        this subparagraph shall apply to a director or 
                        officer liability insurance contract or a 
                        depository institution bond, to the rights of 
                        parties to certain qualified financial 
                        contracts pursuant to paragraph (8), or to the 
                        rights of parties to netting contracts pursuant 
                        to subtitle A of title IV of the Federal 
                        Deposit Insurance Corporation Improvement Act 
                        of 1991 (12 U.S.C. 4401 et seq.), or shall be 
                        construed as permitting the conservator or 
                        receiver to fail to comply with otherwise 
                        enforceable provisions of such contract.
                            ``(iii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed to limit 
                        or otherwise affect the applicability of title 
                        11, United States Code.''.
    (b) Insured Credit Unions.--Section 207(c)(12) of the Federal 
Credit Union Act (12 U.S.C. 1787(c)(12)) is amended by adding the 
following:
                    ``(C) Consent requirement.--
                            ``(i) In general.--Except as otherwise 
                        provided by this section, no person may 
                        exercise any right or power to terminate, 
                        accelerate, or declare a default under any 
                        contract to which the credit union is a party, 
                        or to obtain possession of or exercise control 
                        over any property of the credit union or affect 
                        any contractual rights of the credit union, 
                        without the consent of the conservator or 
                        liquidating agent, as appropriate, during the 
                        45-day period beginning on the date of the 
                        appointment of the conservator, or during the 
                        90-day period beginning on the date of the 
                        appointment of the liquidating agent, as 
                        applicable.
                            ``(ii) Certain exceptions.--No provision of 
                        this subparagraph shall apply to a director or 
                        officer liability insurance contract or a 
                        credit union bond, or to the rights of parties 
                        to certain qualified financial contracts 
                        pursuant to paragraph (8), or shall be 
                        construed as permitting the conservator or 
                        liquidating agent to fail to comply with 
                        otherwise enforceable provisions of such 
                        contract.
                            ``(iii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed to limit 
                        or otherwise affect the applicability of title 
                        11, United States Code.''.

SEC. 719. ACQUISITION OF FICO SCORES.

    Section 604(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681b(a)) is amended by adding at the end the following:
            ``(6) To the Federal Deposit Insurance Corporation or the 
        National Credit Union Administration as part of its preparation 
        for its appointment or as part of its exercise of powers, as 
        conservator, receiver, or liquidating agent for an insured 
        depository institution or insured credit union under the 
        Federal Deposit Insurance Act or the Federal Credit Union Act, 
        or other applicable Federal or State law, or in connection with 
        the resolution or liquidation of a failed or failing insured 
        depository institution or insured credit union, as 
        applicable.''.

SEC. 720. ELIMINATION OF CRIMINAL INDICTMENTS AGAINST RECEIVERSHIPS.

    (a) Insured Depository Institutions.--Section 15(b) of the Federal 
Deposit Insurance Act (12 U.S.C. 1825(b)) is amended by inserting 
immediately after paragraph (3) the following:
            ``(4) Exemption from criminal prosecution.--The Corporation 
        shall be exempt from all prosecution by the United States or 
        any State, county, municipality, or local authority for any 
        criminal offense arising under Federal, State, county, 
        municipal, or local law, which was allegedly committed by the 
        institution, or persons acting on behalf of the institution, 
        prior to the appointment of the Corporation as receiver.''.
    (b) Insured Credit Unions.--Section 207(b)(2) of the Federal Credit 
Union Act (12 U.S.C. 1787(b)(2)) is amended by adding at the end the 
following:
                    ``(K) Exemption from criminal prosecution.--The 
                Administration shall be exempt from all prosecution by 
                the United States or any State, county, municipality, 
                or local authority for any criminal offense arising 
                under Federal, State, county, municipal, or local law, 
                which was allegedly committed by a credit union, or 
                persons acting on behalf of a credit union, prior to 
                the appointment of the Administration as liquidating 
                agent.''.

SEC. 721. RESOLUTION OF DEPOSIT INSURANCE DISPUTES.

    (a) Insured Depository Institutions.--Section 11(f) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(f)) is amended by striking 
paragraphs (3) through (5) and inserting the following:
            ``(3) Resolution of disputes.--A determination by the 
        Corporation regarding any claim for insurance coverage shall be 
        treated as a final determination for purposes of this section. 
        In its discretion, the Corporation may promulgate regulations 
        prescribing procedures for resolving any disputed claim 
        relating to any insured deposit or any determination of 
        insurance coverage with respect to any deposit.
            ``(4) Review of corporation determination.--A final 
        determination made by the Corporation regarding any claim for 
        insurance coverage shall be a final agency action reviewable in 
        accordance with chapter 7 of title 5, United States Code, by 
        the United States district court for the Federal judicial 
        district where the principal place of business of the 
        depository institution is located.
            ``(5) Statute of limitations.--Any request for review of a 
        final determination by the Corporation regarding any claim for 
        insurance coverage shall be filed with the appropriate United 
        States district court not later than 60 days after the date on 
        which such determination is issued.''.
    (b) Insured Credit Unions.--Section 207(d) of the Federal Credit 
Union Act (12 U.S.C. 1787(d)) is amended by striking paragraphs (3) 
through (5) and inserting the following:
            ``(3) Resolution of disputes.--A determination by the 
        Administration regarding any claim for insurance coverage shall 
        be treated as a final determination for purposes of this 
        section. In its discretion, the Board may promulgate 
        regulations prescribing procedures for resolving any disputed 
        claim relating to any insured deposit or any determination of 
        insurance coverage with respect to any deposit. A final 
        determination made by the Board regarding any claim for 
        insurance coverage shall be a final agency action reviewable in 
        accordance with chapter 7 of title 5, United States Code, by 
        the United States district court for the Federal judicial 
        district where the principal place of business of the credit 
        union is located.
            ``(4) Statute of limitations.--Any request for review of a 
        final determination by the Board regarding any claim for 
        insurance coverage shall be filed with the appropriate United 
        States district court not later than 60 days after the date on 
        which such determination is issued.''.

SEC. 722. RECORDKEEPING.

    (a) Insured Depository Institutions.--Section 11(d)(15)(D) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(d)(15)(D)) is amended--
            (1) by striking ``After the end of the 6-year period'' and 
        inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), after the end of the 6-year 
                        period''; and
            (2) by adding at the end the following:
                            ``(ii) Old records.--Notwithstanding clause 
                        (i), the Corporation may destroy records of an 
                        insured depository institution which are at 
                        least 10 years old as of the date on which the 
                        Corporation is appointed as the receiver of 
                        such depository institution in accordance with 
                        clause (i) at any time after such appointment 
                        is final, without regard to the 6-year period 
                        of limitation contained in clause (i).''.
    (b) Insured Credit Unions.--Section 207(b)(15)(D) of the Federal 
Credit Union Act (12 U.S.C. 1787(b)(15)(D)) is amended--
            (1) by striking ``After the end of the 6-year period'' and 
        inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), after the end of the 6-year 
                        period''; and
            (2) by adding at the end the following:
                            ``(ii) Old records.--Notwithstanding clause 
                        (i) the Board may destroy records of an insured 
                        credit union which are at least 10 years old as 
                        of the date on which the Board is appointed as 
                        liquidating agent of such credit union in 
                        accordance with clause (i) at any time after 
                        such appointment is final, without regard to 
                        the 6-year period of limitation contained in 
                        clause (i).''.

SEC. 723. PRESERVATION OF RECORDS.

    (a) Insured Depository Institutions.--Section 10(f) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(f)) is amended to read as 
follows:
    ``(f) Preservation of Agency Records.--
            ``(1) In general.--A Federal banking agency may cause any 
        and all records, papers, or documents kept by the agency or in 
        the possession or custody of the agency to be--
                    ``(A) photographed or microphotographed or 
                otherwise reproduced upon film; or
                    ``(B) preserved in any electronic medium or format 
                which is capable of--
                            ``(i) being read or scanned by computer; 
                        and
                            ``(ii) being reproduced from such 
                        electronic medium or format by printing any 
                        other form of reproduction of electronically 
                        stored data.
            ``(2) Treatment as original records.--Any photographs, 
        microphotographs, or photographic film or copies thereof 
        described in paragraph (1)(A) or reproduction of electronically 
        stored data described in paragraph (1)(B) shall be deemed to be 
        an original record for all purposes, including introduction in 
        evidence in all State and Federal courts or administrative 
        agencies, and shall be admissible to prove any act, 
        transaction, occurrence, or event therein recorded.
            ``(3) Authority of the federal banking agencies.--Any 
        photographs, microphotographs, or photographic film or copies 
        thereof described in paragraph (1)(A) or reproduction of 
        electronically stored data described in paragraph (1)(B) shall 
        be preserved in such manner as the Federal banking agency shall 
        prescribe, and the original records, papers, or documents may 
        be destroyed or otherwise disposed of as the Federal banking 
        agency may direct.''.
    (b) Insured Credit Unions.--Section 206(s) of the Federal Credit 
Union Act (12 U.S.C. 1786(s)) is amended by adding at the end the 
following:
            ``(9) Preservation of records.--
                    ``(A) In general.--The Board may cause any and all 
                records, papers, or documents kept by the 
                Administration or in the possession or custody of the 
                Administration to be--
                            ``(i) photographed or microphotographed or 
                        otherwise reproduced upon film; or
                            ``(ii) preserved in any electronic medium 
                        or format which is capable of--
                                    ``(I) being read or scanned by 
                                computer; and
                                    ``(II) being reproduced from such 
                                electronic medium or format by printing 
                                or any other form of reproduction of 
                                electronically stored data.
                    ``(B) Treatment as original records.--Any 
                photographs, micrographs, or photographic film or 
                copies thereof described in subparagraph (A)(i) or 
                reproduction of electronically stored data described in 
                subparagraph (A)(ii) shall be deemed to be an original 
                record for all purposes, including introduction in 
                evidence in all State and Federal courts or 
                administrative agencies, and shall be admissible to 
                prove any act, transaction, occurrence, or event 
                therein recorded.
                    ``(C) Authority of the administration.--Any 
                photographs, microphotographs, or photographic film or 
                copies thereof described in subparagraph (A)(i) or 
                reproduction of electronically stored data described in 
                subparagraph (A)(ii) shall be preserved in such manner 
                as the Administration shall prescribe, and the original 
                records, papers, or documents may be destroyed or 
                otherwise disposed of as the Administration may 
                direct.''.

SEC. 724. TECHNICAL AMENDMENTS TO INFORMATION SHARING PROVISION IN THE 
              FEDERAL DEPOSIT INSURANCE ACT.

    Section 11(t) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(t)) is amended--
            (1) in paragraph (1), by inserting ``, in any capacity,'' 
        after ``A covered agency''; and
            (2) in paragraph (2)(A)--
                    (A) in clause (i), by striking ``appropriate'';
                    (B) by striking clause (ii); and
                    (C) by redesignating clauses (iii) through (vi) as 
                clauses (ii) through (v), respectively.

SEC. 725. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO BANKS 
              OPERATING UNDER THE CODE OF LAW FOR THE DISTRICT OF 
              COLUMBIA.

    (a) Federal Reserve Act.--The Federal Reserve Act (12 U.S.C. 221 et 
seq.) is amended--
            (1) in the second undesignated paragraph of the first 
        section (12 U.S.C. 221), by adding at the end the following: 
        ``For purposes of this Act, a State bank includes any bank 
        which is operating under the Code of Law for the District of 
        Columbia.''; and
            (2) in the first sentence of the first undesignated 
        paragraph of section 9 (12 U.S.C. 321), by striking 
        ``incorporated by special law of any State, or'' and inserting 
        ``incorporated by special law of any State, operating under the 
        Code of Law for the District of Columbia, or''.
    (b) Bank Conservation Act.--Section 202 of the Bank Conservation 
Act (12 U.S.C. 202) is amended--
            (1) by striking ``means (1) any national'' and inserting 
        ``means any national''; and
            (2) by striking ``, and (2) any bank or trust company 
        located in the District of Columbia and operating under the 
        supervision of the Comptroller of the Currency''.
    (c) Depository Institution Deregulation and Monetary Control Act of 
1980.--Part C of title VII of the Depository Institution Deregulation 
and Monetary Control Act of 1980 (12 U.S.C. 216 et seq.) is amended--
            (1) in paragraph (1) of section 731 (12 U.S.C. 216(1)), by 
        striking ``and closed banks in the District of Columbia''; and
            (2) in paragraph (2) of section 732 (12 U.S.C. 216a(2)), by 
        striking ``or closed banks in the District of Columbia''.
    (d) Federal Deposit Insurance Act.--Section 3(a)(2)(B) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(a)(2)(B)) is amended by 
striking ``(except a national bank)''.
    (e) National Bank Consolidation and Merger Act.--Section 7(1) of 
the National Bank Consolidation and Merger Act (12 U.S.C. 215b(1)) is 
amended by striking ``(except a national banking association located in 
the District of Columbia)''.
    (f) Act of August 17, 1950.--Section 1(a) of the Act entitled ``An 
Act to provide for the conversion of national banking associations into 
and their merger or consolidation with State banks, and for other 
purposes'' and approved August 17, 1950 (12 U.S.C. 214(a)) is amended 
by striking ``(except a national banking association)''.
    (g) Federal Trade Commission Act.--Section 18(f)(2) of the Federal 
Trade Commission Act (15 U.S.C. 57a(f)(2)) is amended--
            (1) in subparagraph (A), by striking ``, banks operating 
        under the code of law for the District of Columbia,''; and
            (2) in subparagraph (B), by striking ``and banks operating 
        under the code of law for the District of Columbia''.

SEC. 726. TECHNICAL CORRECTIONS TO THE FEDERAL CREDIT UNION ACT.

    The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended as 
follows:
            (1) In section 101(3), strike ``and'' after the semicolon.
            (2) In section 101(5), strike the terms ``account account'' 
        and ``account accounts'' each place any such term appears and 
        insert ``account''.
            (3) In section 107(5)(E), strike the period at the end and 
        insert a semicolon.
            (4) In each of paragraphs (6) and (7) of section 107, 
        strike the period at the end and insert a semicolon.
            (5) In section 107(7)(D), strike ``the Federal Savings and 
        Loan Insurance Corporation or''.
            (6) In section 107(7)(E), strike ``the Federal Home Loan 
        Bank Board,'' and insert ``the Federal Housing Finance 
        Board,''.
            (7) In section 107(9), strike ``subchapter III'' and insert 
        ``title III''.
            (8) In section 107(13), strike ``and'' after the semicolon 
        at the end.
            (9) In section 109(c)(2)(A)(i), strike ``(12 U.S.C. 
        4703(16))''.
            (10) In section 120(h), strike ``the Act approved July 30, 
        1947 (6 U.S.C., secs. 6-13),'' and insert ``chapter 93 of title 
        31, United States Code,''.
            (11) In section 201(b)(5), strike ``section 116 of''.
            (12) In section 202(h)(3), strike ``section 207(c)(1)'' and 
        insert ``section 207(k)(1)''.
            (13) In section 204(b), strike ``such others powers'' and 
        insert ``such other powers''.
            (14) In section 206(e)(3)(D), strike ``and'' after the 
        semicolon at the end.
            (15) In section 206(f)(1), strike ``subsection (e)(3)(B)'' 
        and insert ``subsection (e)(3)''.
            (16) In section 206(g)(7)(D), strike ``and subsection 
        (1)''.
            (17) In section 206(t)(2)(B), insert ``regulations'' after 
        ``as defined in''.
            (18) In section 206(t)(2)(C), strike ``material affect'' 
        and insert ``material effect''.
            (19) In section 206(t)(4)(A)(ii)(II), strike ``or'' after 
        the semicolon at the end.
            (20) In section 206A(a)(2)(A), strike ``regulator agency'' 
        and insert ``regulatory agency''.
            (21) In section 207(c)(5)(B)(i)(I), insert ``and'' after 
        the semicolon at the end.
            (22) In the heading for subparagraph (A) of section 
        207(d)(3), strike ``to'' and insert ``with''.
            (23) In section 207(f)(3)(A), strike ``category or 
        claimants'' and insert ``category of claimants''.
            (24) In section 209(a)(8), strike the period at the end and 
        insert a semicolon.
            (25) In section 216(n), insert ``any action'' before ``that 
        is required''.
            (26) In section 304(b)(3), strike ``the affairs or such 
        credit union'' and insert ``the affairs of such credit union''.
            (27) In section 310, strike ``section 102(e)'' and insert 
        ``section 102(d)''.

SEC. 727. REPEAL OF OBSOLETE PROVISIONS OF THE BANK HOLDING COMPANY ACT 
              OF 1956.

    (a) In General.--Section 2 of the Bank Holding Company Act of 1956 
(12 U.S.C. 1841) is amended--
            (1) in subsection (c)(2), by striking subparagraphs (I) and 
        (J); and
            (2) by striking subsection (m) and inserting the following:
    ``(m) [Repealed]''.
    (b) Technical and Conforming Amendments.--Paragraphs (1) and (2) of 
section 4(h) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(h)) are each amended by striking ``(G), (H), (I), or (J) of 
section 2(c)(2)'' and inserting ``(G), or (H) of section 2(c)(2)''.

SEC. 728. DEVELOPMENT OF MODEL PRIVACY FORM.

    Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803), as 
amended by section 609, is amended by adding at the end the following:
    ``(e) Model Forms.--
            ``(1) In general.--The agencies referred to in section 
        504(a)(1) shall jointly develop a model form which may be used, 
        at the option of the financial institution, for the provision 
        of disclosures under this section.
            ``(2) Format.--A model form developed under paragraph (1) 
        shall--
                    ``(A) be comprehensible to consumers, with a clear 
                format and design;
                    ``(B) provide for clear and conspicuous 
                disclosures;
                    ``(C) enable consumers easily to identify the 
                sharing practices of a financial institution and to 
                compare privacy practices among financial institutions; 
                and
                    ``(D) be succinct, and use an easily readable type 
                font.
            ``(3) Timing.--A model form required to be developed by 
        this subsection shall be issued in proposed form for public 
        comment not later than 180 days after the date of enactment of 
        this subsection.
            ``(4) Safe harbor.--Any financial institution that elects 
        to provide the model form developed by the agencies under this 
        subsection shall be deemed to be in compliance with the 
        disclosures required under this section.''.

       TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS

SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCEMENT PROGRAMS.

    (a) In General.--The Fair Debt Collection Practices Act (15 U.S.C. 
1692 et seq.) is amended--
            (1) by redesignating section 818 as section 819; and
            (2) by inserting after section 817 the following:
``Sec. 818. Exception for certain bad check enforcement programs 
              operated by private entities
    ``(a) In General.--
            ``(1) Treatment of certain private entities.--Subject to 
        paragraph (2), a private entity shall be excluded from the 
        definition of a debt collector, pursuant to the exception 
        provided in section 803(6), with respect to the operation by 
        the entity of a program described in paragraph (2)(A) under a 
        contract described in paragraph (2)(B).
            ``(2) Conditions of applicability.--Paragraph (1) shall 
        apply if--
                    ``(A) a State or district attorney establishes, 
                within the jurisdiction of such State or district 
                attorney and with respect to alleged bad check 
                violations that do not involve a check described in 
                subsection (b), a pretrial diversion program for 
                alleged bad check offenders who agree to participate 
                voluntarily in such program to avoid criminal 
                prosecution;
                    ``(B) a private entity, that is subject to an 
                administrative support services contract with a State 
                or district attorney and operates under the direction, 
                supervision, and control of such State or district 
                attorney, operates the pretrial diversion program 
                described in subparagraph (A); and
                    ``(C) in the course of performing duties delegated 
                to it by a State or district attorney under the 
                contract, the private entity referred to in 
                subparagraph (B)--
                            ``(i) complies with the penal laws of the 
                        State;
                            ``(ii) conforms with the terms of the 
                        contract and directives of the State or 
                        district attorney;
                            ``(iii) does not exercise independent 
                        prosecutorial discretion;
                            ``(iv) contacts any alleged offender 
                        referred to in subparagraph (A) for purposes of 
                        participating in a program referred to in such 
                        paragraph--
                                    ``(I) only as a result of any 
                                determination by the State or district 
                                attorney that probable cause of a bad 
                                check violation under State penal law 
                                exists, and that contact with the 
                                alleged offender for purposes of 
                                participation in the program is 
                                appropriate; and
                                    ``(II) the alleged offender has 
                                failed to pay the bad check after 
                                demand for payment, pursuant to State 
                                law, is made for payment of the check 
                                amount;
                            ``(v) includes as part of an initial 
                        written communication with an alleged offender 
                        a clear and conspicuous statement that--
                                    ``(I) the alleged offender may 
                                dispute the validity of any alleged bad 
                                check violation;
                                    ``(II) where the alleged offender 
                                knows, or has reasonable cause to 
                                believe, that the alleged bad check 
                                violation is the result of theft or 
                                forgery of the check, identity theft, 
                                or other fraud that is not the result 
                                of the conduct of the alleged offender, 
                                the alleged offender may file a crime 
                                report with the appropriate law 
                                enforcement agency; and
                                    ``(III) if the alleged offender 
                                notifies the private entity or the 
                                district attorney in writing, not later 
                                than 30 days after being contacted for 
                                the first time pursuant to clause (iv), 
                                that there is a dispute pursuant to 
                                this subsection, before further 
                                restitution efforts are pursued, the 
                                district attorney or an employee of the 
                                district attorney authorized to make 
                                such a determination makes a 
                                determination that there is probable 
                                cause to believe that a crime has been 
                                committed; and
                            ``(vi) charges only fees in connection with 
                        services under the contract that have been 
                        authorized by the contract with the State or 
                        district attorney.
    ``(b) Certain Checks Excluded.--A check is described in this 
subsection if the check involves, or is subsequently found to involve--
            ``(1) a postdated check presented in connection with a 
        payday loan, or other similar transaction, where the payee of 
        the check knew that the issuer had insufficient funds at the 
        time the check was made, drawn, or delivered;
            ``(2) a stop payment order where the issuer acted in good 
        faith and with reasonable cause in stopping payment on the 
        check;
            ``(3) a check dishonored because of an adjustment to the 
        issuer's account by the financial institution holding such 
        account without providing notice to the person at the time the 
        check was made, drawn, or delivered;
            ``(4) a check for partial payment of a debt where the payee 
        had previously accepted partial payment for such debt;
            ``(5) a check issued by a person who was not competent, or 
        was not of legal age, to enter into a legal contractual 
        obligation at the time the check was made, drawn, or delivered; 
        or
            ``(6) a check issued to pay an obligation arising from a 
        transaction that was illegal in the jurisdiction of the State 
        or district attorney at the time the check was made, drawn, or 
        delivered.
    ``(c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) State or district attorney.--The term `State or 
        district attorney' means the chief elected or appointed 
        prosecuting attorney in a district, county (as defined in 
        section 2 of title 1, United States Code), municipality, or 
        comparable jurisdiction, including State attorneys general who 
        act as chief elected or appointed prosecuting attorneys in a 
        district, county (as so defined), municipality or comparable 
        jurisdiction, who may be referred to by a variety of titles 
        such as district attorneys, prosecuting attorneys, 
        commonwealth's attorneys, solicitors, county attorneys, and 
        state's attorneys, and who are responsible for the prosecution 
        of State crimes and violations of jurisdiction-specific local 
        ordinances.
            ``(2) Check.--The term `check' has the same meaning as in 
        section 3(6) of the Check Clearing for the 21st Century Act.
            ``(3) Bad check violation.--The term `bad check violation' 
        means a violation of the applicable State criminal law relating 
        to the writing of dishonored checks.''.
    (b) Clerical Amendment.--The table of sections for the Fair Debt 
Collection Practices Act (15 U.S.C. 1692 et seq.) is amended--
            (1) by redesignating the item relating to section 818 as 
        section 819; and
            (2) by inserting after the item relating to section 817 the 
        following new item:

``818. Exception for certain bad check enforcement programs operated by 
                            private entities.''.

                TITLE IX--CASH MANAGEMENT MODERNIZATION

SEC. 901. COLLATERAL MODERNIZATION.

    (a) In General.--Section 9301(2) of title 31, United States Code, 
is amended to read as follows:
            ``(2) `eligible obligation' means any security designated 
        as acceptable in lieu of a surety bond by the Secretary of the 
        Treasury.''.
    (b) Use of Eligible Obligations Instead of Surety Bonds.--Section 
9303(a)(2) of title 31, United States Code, is amended to read as 
follows:
            ``(2) as determined by the Secretary of the Treasury, have 
        a market value that is equal to or greater than the amount of 
        the required surety bond; and''.
    (c) Technical Amendments.--Section 9303 of title 31, United States 
Code, is amended--
            (1) in the section heading, by striking ``Government 
        obligations'' and inserting ``eligible obligations'';
            (2) in subsection (f), by striking ``Government 
        obligations'' and inserting ``eligible obligations'';
            (3) by striking ``a Government obligation'' each place that 
        term appears and inserting ``an eligible obligation''; and
            (4) by striking ``Government obligation'' each place that 
        term appears and inserting ``eligible obligation''.

                      TITLE X--STUDIES AND REPORTS

SEC. 1001. STUDY AND REPORT BY THE COMPTROLLER GENERAL ON THE CURRENCY 
              TRANSACTION REPORT FILING SYSTEM.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study on the volume of currency transaction reports filed 
with the Secretary of the Treasury under section 5313(a) of title 31, 
United States Code.
    (b) Purpose.--The purpose of the study required under subsection 
(a) shall be--
            (1) to evaluate, on the basis of actual filing data, 
        patterns of currency transaction reports filed by depository 
        institutions of all sizes and locations; and
            (2) to identify whether and the extent to which the filing 
        rules for currency transaction reports described in section 
        5313(a) of title 31, United States Code--
                    (A) are burdensome; and
                    (B) can or should be modified to reduce such 
                burdens without harming the usefulness of such filing 
                rules to Federal, State, and local anti-terrorism, law 
                enforcement, and regulatory operations.
    (c) Period Covered.--The study required under subsection (a) shall 
cover the period beginning at least 3 calendar years prior to the date 
of enactment of this section.
    (d) Content.--The study required under subsection (a) shall include 
a detailed evaluation of--
            (1) the extent to which depository institutions are 
        availing themselves of the exemption system for the filing of 
        currency transaction reports set forth in section 103.22(d) of 
        title 31, Code of Federal Regulations, as in effect during the 
        study period (in this section referred to as the ``exemption 
        system''), including specifically, for the study period--
                    (A) the number of currency transaction reports 
                filed (out of the total annual numbers) involving 
                companies that are listed on the New York Stock 
                Exchange or the NASDAQ National Market;
                    (B) the number of currency transaction reports 
                filed by the 100 largest depository institutions in the 
                United States by asset size, and thereafter in tiers of 
                100, by asset size;
                    (C) the number of currency transaction reports 
                filed by the 200 smallest depository institutions in 
                the United States, including the number of such 
                currency transaction reports involving companies listed 
                on the New York Stock Exchange or the NASDAQ National 
                Market; and
                    (D) the number of currency transaction reports that 
                would have been filed during the filing period if the 
                exemption system had been used by all depository 
                institutions in the United States;
            (2) what types of depository institutions are using the 
        exemption system, and the extent to which such exemption system 
        is used;
            (3) difficulties that limit the willingness or ability of 
        depository institutions to reduce their currency transaction 
        reports reporting burden by making use of the exemption system, 
        including considerations of cost, especially in the case of 
        small depository institutions;
            (4) the extent to which bank examination difficulties have 
        limited the use of the exemption system, especially with 
        respect to--
                    (A) the exemption of privately-held companies 
                permitted under such exemption system; and
                    (B) whether, on a sample basis, the reaction of 
                bank examiners to implementation of such exemption 
                system is justified or inhibits use of such exemption 
                system without an offsetting compliance benefit;
            (5) ways to improve the use of the exemption system by 
        depository institutions, including making such exemption system 
        mandatory in order to reduce the volume of currency transaction 
        reports unnecessarily filed; and
            (6) the usefulness of currency transaction reports filed to 
        law enforcement agencies, taking into account--
                    (A) advances in information technology;
                    (B) the impact, including possible loss of 
                investigative data, that various changes in the 
                exemption system would have on the usefulness of such 
                currency transaction reports; and
                    (C) changes that could be made to the exemption 
                system without affecting the usefulness of currency 
                transaction reports.
    (e) Assistance.--The Secretary of the Treasury shall provide such 
information processing and other assistance, including from the 
Commissioner of the Internal Revenue Service and the Director of the 
Financial Crimes Enforcement Network, to the Comptroller General in 
analyzing currency transaction report filings for the study period 
described in subsection (c), as is necessary to provide the information 
required by subsection (a).
    (f) Views.--The study required under subsection (a) shall, if 
appropriate, include a discussion of the views of a representative 
sample of Federal, State, and local law enforcement and regulatory 
officials and officials of depository institutions of all sizes.
    (g) Recommendations.--The study required under subsection (a) 
shall, if appropriate, include recommendations for changes to the 
exemption system that would reflect a reduction in unnecessary cost to 
depository institutions, assuming reasonably full implementation of 
such exemption system, without reducing the usefulness of the currency 
transaction report filing system to anti-terrorism, law enforcement, 
and regulatory operations.
    (h) Report.--Not later than 15 months after the date of enactment 
of this section, the Comptroller General shall submit a report on the 
study required under subsection (a) to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives.

SEC. 1002. STUDY AND REPORT ON INSTITUTION DIVERSITY AND CONSOLIDATION.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study regarding--
            (1) the vast diversity in the size and complexity of 
        institutions in the banking and financial services sector, 
        including the differences in capital, market share, 
        geographical limitations, product offerings, and general 
        activities;
            (2) the differences in powers among the depository 
        institution charters, including--
                    (A) identification of the historical trends in the 
                evolution of depository institution charters;
                    (B) an analysis of the impact of charter 
                differences to the overall safety and soundness of the 
                banking industry, and the effectiveness of the 
                applicable depository institution regulator; and
                    (C) an analysis of the impact that the availability 
                of options for depository institution charters on the 
                development of the banking industry;
            (3) the impact that differences of size and overall 
        complexity among financial institutions makes with respect to 
        regulatory oversight, efficiency, safety and soundness, and 
        charter options for financial institutions; and
            (4) the aggregate cost and breakdown associated with 
        regulatory compliance for banks, savings associations, credit 
        unions, or any other financial institution, including potential 
        disproportionate impact that the cost of compliance may pose on 
        smaller institutions, given the percentage of personnel that 
        the institution must dedicate solely to compliance.
    (b) Considerations.--In conducting the study under subsection (a), 
the Comptroller General shall consider the efficacy and efficiency of 
the consolidation of financial regulators, as well as charter 
simplification and homogenization.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General of the United States shall submit a 
report to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the House of 
Representatives on the results of the study required by this section.
                                                       Calendar No. 437

109th CONGRESS

  2d Session

                                S. 2856

                          [Report No. 109-256]

_______________________________________________________________________

                                 A BILL

   To provide regulatory relief and improve productivity for insured 
            depository institutions, and for other purposes.

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                              May 18, 2006

                 Read twice and placed on the calendar`