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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3567 Introduced in House (IH)]

104th CONGRESS
  2d Session
                                H. R. 3567

To fully capitalize the deposit insurance funds, to provide regulatory 
 relief for insured depository institutions and depository institution 
               holding companies, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 1996

 Mr. Bereuter introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL

 
To fully capitalize the deposit insurance funds, to provide regulatory 
 relief for insured depository institutions and depository institution 
               holding companies, 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 ``Federal Deposit 
Insurance Funds and Regulatory Relief Act of 1996''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--THRIFT AND BANK CHARTER MERGER

   Subtitle A--Recapitalization of Savings Association Insurance Fund

Sec. 101. Special assessment to capitalize SAIF.
          Subtitle B--Status of Banks and Savings Associations

Sec. 111. Comprehensive review of charter merger.
                 Subtitle C--Merger of Insurance Funds

Sec. 121. Merger of BIF and SAIF.
                 Subtitle D--FICO INTEREST COSTS SHARED

Sec. 131. Financing corporation assessments shared proportionally by 
                            all insured depository institutions.
         Subtitle E--Refunds of Excess Amounts in Deposit Fund

Sec. 141. Refund of amounts in deposit insurance fund in excess of 
                            designated reserve amount.
                 Subtitle F--Limitation on Assessments

Sec. 151. Assessments authorized only if needed to maintain the reserve 
                            ratio of a deposit insurance fund.
                  Subtitle G--Miscellaneous Provisions

Sec. 161. Definitions.
                   TITLE II--TRANSITIONAL PROVISIONS

Sec. 201. Applicability of FICO assessments to certain SAIF-assessable 
                            deposits until merger of BIF and SAIF.
Sec. 202. Deposit insurance fund cross guarantees.
Sec. 203. Savings association insurance fund member assessment rate.
Sec. 204. Deposit shifts between BIF and SAIF member subsidiaries of 
                            the same holding company.
Sec. 205. Transfer of Federal reserve surplus funds to meet FICO 
                            carrying costs.
           TITLE III--REDUCTIONS IN GOVERNMENT OVERREGULATION

Sec. 300. Short title.
                 Subtitle A--The Home Mortgage Process

Sec. 301. Regulatory authority over disclosures and escrow accounts 
                            under RESPA transferred to Federal Reserve 
                            Board.
Sec. 302. Simplification and unification of disclosures required under 
                            RESPA and TILA for mortgage transactions.
Sec. 303. Increased regulatory flexibility under the Truth in Lending 
                            Act.
Sec. 304. Reductions in RESPA regulatory burdens; clarifying 
                            amendments.
Sec. 305. Disclosures for adjustable rate mortgages.
Sec. 306. Certain charges.
Sec. 307. Exemptions from rescission.
Sec. 308. Recovery of fees.
Sec. 309. Home ownership debt counseling notification.
Sec. 310. Home Mortgage Disclosure Act.
           Subtitle B--Community Reinvestment Act Amendments

Sec. 321. Expression of congressional intent.
Sec. 322. Community Reinvestment Act exemption.
Sec. 323. Community input and conclusive rating.
Sec. 324. Special purpose financial institutions.
Sec. 325. Increased incentives for lending to low- and moderate-income 
                            communities.
Sec. 326. Prohibition on additional reporting under CRA.
Sec. 327. Technical amendment.
Sec. 328. Duplicative reporting.
Sec. 329. CRA congressional oversight.
Sec. 330. Consultation among examiners.
Sec. 331. Limitation on regulations.
                  Subtitle C--Consumer Banking Reforms

Sec. 341. Truth in Savings.
Sec. 342. Information sharing.
Sec. 343. Electronic Fund Transfer Act clarification.
Sec. 344. Limit on restitution for Truth in Lending violations if 
                            safety and soundness of violator would be 
                            affected.
          Subtitle D--Equal Credit Opportunity Act Amendments

Sec. 351. Short title.
Sec. 352. Findings and purpose.
Sec. 353. Equal Credit Opportunity Act amendments.
Sec. 354. Fair Credit Reporting Act amendments.
Sec. 355. Incentives for self-testing.
Sec. 356. Credit scoring systems.
Sec. 357. Consultation by Attorney General required in nonreferral 
                            cases.
Sec. 358. Effective date.
              Subtitle E--Consumer Leasing Act Amendments

Sec. 361. Short title.
Sec. 362. Congressional findings and declaration of purpose.
Sec. 363. Regulations.
Sec. 364. Consumer lease advertising.
Sec. 365. Statutory penalties.
             TITLE IV--STREAMLINING GOVERNMENT REGULATIONS

                 Subtitle A--Regulatory Approval Issues

Sec. 401. Streamlined nonbanking acquisitions by well capitalized and 
                            well managed banking organizations.
Sec. 402. Streamlined bank acquisitions by well capitalized and well 
                            managed banking organizations.
Sec. 403. Eliminate filing and approval requirements for insured 
                            depository institutions already controlled 
                            by the same holding company.
Sec. 404. Eliminate redundant approval requirement for Oakar 
                            transactions.
Sec. 405. Elimination of duplicative requirements imposed upon bank 
                            holding companies and other regulatory 
                            relief under the Home Owners' Loan Act.
Sec. 406. Eliminate requirement that approval be obtained for 
                            divestitures.
Sec. 407. Eliminate unnecessary branch applications.
Sec. 408. Eliminate branch applications and requirements for ATMs and 
                            similar facilities.
Sec. 409. Eliminate requirement for approval of investments in bank 
                            premises for well capitalized and well 
                            managed banks.
Sec. 410. Eliminate unnecessary filing for officer and director 
                            appointments.
Sec. 411. Streamlining process for determining new nonbanking 
                            activities.
Sec. 412. Disposition of foreclosed assets.
Sec. 413. Increase in certain credit union loan ceilings.
   Subtitle B--Streamlining of Government Regulations; Miscellaneous 
                               Provisions

Sec. 421. Eliminate the per-branch capital requirement for national 
                            banks and State member banks.
Sec. 422. Branch closures.
Sec. 423. Amendments to the Depository Institutions Management 
                            Interlocks Act.
Sec. 424. Acceleration of repayment to Treasury.
Sec. 425. Eliminate unnecessary and duplicative recordkeeping and 
                            reporting requirements relating to loans to 
                            executive officers and permit participation 
                            in employee benefit plans.
Sec. 426. Expanded regulatory discretion for small bank examinations.
Sec. 427. Cost reimbursement.
Sec. 428. Identification of foreign nonbank financial institution 
                            customers.
Sec. 429. Paperwork reduction review.
Sec. 430. Daily confirmations for hold-in-custody repurchase 
                            transactions.
Sec. 431. Required regulatory review of regulations.
Sec. 432. Country risk requirements.
Sec. 433. Audit costs.
Sec. 434. Standards for director and officer liability.
Sec. 435. Foreign bank applications.
Sec. 436. Duplicate examination of foreign banks.
Sec. 437. Second mortgages.
Sec. 438. Streamlining FDIC approval of new State bank powers.
Sec. 439. Repeal of call report attestation requirement.
Sec. 440. Authorizing bank service companies to organize as limited 
                            liability partnerships.
Sec. 441. Bank investments in Edge Act and agreement corporations.
Sec. 442. Report on the reconciliation of differences between 
                            regulatory accounting principles and 
                            generally accepted accounting principles.
Sec. 443. Waivers authorized for residency requirement for national 
                            bank directors.
                       TITLE V--LENDER LIABILITY

Sec. 501. Lender liability.
    TITLE VI--ANNUAL STUDY AND REPORT ON IMPACT ON LENDING TO SMALL 
                                BUSINESS

Sec. 601. Annual study and report.

                TITLE I--THRIFT AND BANK CHARTER MERGER

   Subtitle A--Recapitalization of Savings Association Insurance Fund

SEC. 101. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.

    (a) In General.--Except as provided in subsection (f), the Board of 
Directors shall impose a special assessment on the SAIF-assessable 
deposits of each insured depository institution at a rate applicable to 
all such institutions that the Board of Directors, in its sole 
discretion, determines (after taking into account the adjustments 
described in subsections (g) through (j)) will cause the Savings 
Association Insurance Fund to achieve the designated reserve ratio on 
January 1, 1998.
    (b) Factors To Be Considered.--In carrying out subsection (a), the 
Board of Directors shall base its determination on--
            (1) the monthly Savings Association Insurance Fund balance 
        most recently calculated;
            (2) data on insured deposits reported in the most recent 
        reports of condition filed not later than 70 days before the 
        date of enactment of this Act by insured depository 
        institutions; and
            (3) any other factors that the Board of Directors deems 
        appropriate.
    (c) Date of Determination.--For purposes of subsection (a), the 
amount of the SAIF-assessable deposits of an insured depository 
institution shall be determined as of March 31, 1995.
    (d) Date Payment Due.--The special assessment imposed under this 
section shall be--
            (1) due on January 1, 1998; and
            (2) paid to the Corporation on the later of--
                    (A) January 1, 1998; or
                    (B) such other date as the Corporation shall 
                prescribe, but not later than March 1, 1998.
    (e) Assessment Deposited in SAIF.--Notwithstanding any other 
provision of law, the proceeds of the special assessment imposed under 
this section shall be deposited in the Savings Association Insurance 
Fund.
    (f) Exemptions for Certain Institutions.--
            (1) Exemption for weak institutions.--The Board of 
        Directors may, by order, in its sole discretion, exempt any 
        insured depository institution that the Board of Directors 
        determines to be weak, from paying the special assessment 
        imposed under this section if the Board of Directors 
determines that the exemption would reduce risk to the Savings 
Association Insurance Fund.
            (2) Guidelines required.--Not later than 30 days after the 
        date of enactment of this Act, the Board of Directors shall 
        prescribe guidelines setting forth the criteria that the Board 
        of Directors will use in exempting institutions under paragraph 
        (1). Such guidelines shall be published in the Federal 
        Register.
            (3) Exemption for certain newly chartered and other defined 
        institutions.--
                    (A) In general.--In addition to the institutions 
                exempted from paying the special assessment under 
                paragraph (1), the Board of Directors shall exempt any 
                insured depository institution from payment of the 
                special assessment if the institution--
                            (i) was in existence on October 1, 1995, 
                        and held no SAIF-assessable deposits before 
                        January 1, 1993;
                            (ii) is a Federal savings bank which--
                                    (I) was established de novo in 
                                April 1994 in order to acquire the 
                                deposits of a savings association which 
                                was in default or in danger of default; 
                                and
                                    (II) received minority interim 
                                capital assistance from the Resolution 
                                Trust Corporation under section 21A(w) 
                                of the Federal Home Loan Bank Act in 
                                connection with the acquisition of any 
                                such savings association; or
                            (iii) is a savings association, the 
                        deposits of which are insured by the Savings 
                        Association Insurance Fund, which--
                                    (I) before January 1, 1987, was 
                                chartered as a Federal savings bank 
                                insured by the Federal Savings and Loan 
                                Insurance Corporation for the purpose 
                                of acquiring all or substantially all 
                                of the assets and assuming all or 
                                substantially all of the deposit 
                                liabilities of a national bank in a 
                                transaction consummated after July 1, 
                                1986; and
                                    (II) as of the date of that 
                                transaction, had assets of less than 
                                $150,000,000.
                    (B) Definition.--For purposes of this paragraph, an 
                institution shall be deemed to have held SAIF-
                assessable deposits before January 1, 1993, if--
                            (i) the institution directly held SAIF-
                        assessable insured deposits before that date; 
                        or
                            (ii) the institution succeeded to, 
                        acquired, purchased, or otherwise holds any 
                        SAIF-assessable deposits as of the date of 
                        enactment of this Act that were SAIF-assessable 
                        deposits before January 1, 1993.
            (4) Exempt institutions required to pay assessments at 
        former rates.--
                    (A) Payments to saif and dif.--Any insured 
                depository institution that the Board of Directors 
                exempts under this subsection from paying the special 
                assessment imposed under this section shall pay 
                semiannual assessments during calendar years 1998, 
                1999, 2000, and 2001--
                            (i) into the Deposit Insurance Fund, based 
                        on SAIF-assessable deposits of that institution 
                        as of December 31, 1997, at assessment rates 
                        calculated under the schedule in effect for 
                        Savings Association Insurance Fund members on 
                        June 30, 1995; or
                            (ii) into the Savings Association Insurance 
                        Fund, based on SAIF-assessable deposits of that 
                        institution, at assessment rates calculated 
                        under the schedule in effect for Savings 
                        Association Insurance Fund members on June 30, 
                        1995, if the Bank Insurance Fund and the 
                        Savings Association Insurance Fund are not 
                        merged into the Deposit Insurance Fund.
                    (B) Optional pro rata payment of special 
                assessment.--This paragraph shall not apply with 
                respect to any insured depository institution (or 
                successor insured depository institution) that has 
                paid, during any calendar year from 1998 through 2001, 
                upon such terms as the Corporation may announce, an 
                amount equal to the product of--
                            (i) 12.5 percent of the special assessment 
                        that the institution would have been required 
                        to pay under subsection (a), if the Board of 
                        Directors had not exempted the institution; and
                            (ii) the number of full semiannual periods 
                        remaining between the date of the payment and 
                        December 31, 2001.
    (g) Special Election for Certain Institutions Facing Hardship as a 
Result of the Special Assessment.--
            (1) Election authorized.--If--
                    (A) an insured depository institution, or any 
                depository institution holding company which, directly 
                or indirectly, controls such institution, is subject to 
                terms or covenants in any debt obligation or preferred 
                stock outstanding on September 13, 1995; and
                    (B) the payment of the special assessment under 
                subsection (a) would pose a significant risk of causing 
                such depository institution or holding company to 
                default or violate any such term or covenant,
        the depository institution may elect, with the approval of the 
        Corporation, to pay such special assessment in accordance with 
        paragraphs (2) and (3) in lieu of paying such assessment in the 
        manner required under subsection (a).
            (2) 1st assessment.--An insured depository institution 
        which makes an election under paragraph (1) shall pay an 
        assessment of 50 percent of the amount of the special 
        assessment that would otherwise apply under subsection (a), by 
        the date on which such special assessment is otherwise due 
        under subsection (d).
            (3) 2d assessment.--An insured depository institution which 
        makes an election under paragraph (1) shall pay a 2d 
        assessment, by the date established by the Board of Directors 
        in accordance with paragraph (4), in an amount equal to the 
        product of 51 percent of the rate determined by the Board of 
        Directors under subsection (a) for determining the amount of 
        the special assessment and the SAIF-assessable deposits of the 
        institution on March 31, 1999, or such other date in calendar 
        year 1999 as the Board of Directors determines to be 
        appropriate.
            (4) Due date of 2d assessment.--The date established by the 
        Board of Directors for the payment of the assessment under 
        paragraph (3) by a depository institution shall be the earliest 
        practicable date which the Board of Directors determines to be 
        appropriate, which is at least 15 days after the date used by 
        the Board of Directors under paragraph (3).
            (5) Supplemental special assessment.--An insured depository 
        institution which makes an election under paragraph (1) shall 
        pay a supplemental special assessment, at the same time the 
        payment under paragraph (3) is made, in an amount equal to the 
        product of--
                    (A) 50 percent of the rate determined by the Board 
                of Directors under subsection (a) for determining the 
                amount of the special assessment; and
                    (B) 95 percent of the amount by which the SAIF-
                assessable deposits used by the Board of Directors for 
                determining the amount of the 1st assessment under 
                paragraph (2) exceeds, if any, the SAIF-assessable 
                deposits used by the Board for determining the amount 
                of the 2d assessment under paragraph (3).
    (h) Adjustment of Special Assessment for Certain Bank Insurance 
Fund Member Banks.--
            (1) In general.--For purposes of computing the special 
        assessment imposed under this section with respect to an 
        institution which, as of June 30, 1995, is a Bank Insurance 
        Fund member, the amount of any deposits of any insured 
        depository institution which section 5(d)(3) of the Federal 
        Deposit Insurance Act treats as insured by the Savings 
        Association Insurance Fund shall be reduced by 20 percent--
                    (A) if the adjusted attributable deposit amount of 
                the Bank Insurance Fund member bank is less than 50 
                percent of the total domestic deposits of that member 
                bank as of June 30, 1995; or
                    (B) if, as of June 30, 1995, the Bank Insurance 
                Fund member--
                            (i) had an adjusted attributable deposit 
                        amount equal to less than 75 percent of the 
                        total assessable deposits of that member bank;
                            (ii) had total assessable deposits greater 
                        than $5,000,000,000; and
                            (iii) was owned or controlled by a bank 
                        holding company that owned or controlled 
                        insured depository institutions having an 
                        aggregate amount of deposits insured or treated 
                        as insured by the Bank Insurance Fund greater 
                        than the aggregate amount of deposits insured 
                        or treated as insured by the Savings 
                        Association Insurance Fund.
            (2) Adjusted attributable deposit amount.--For purposes of 
        this subsection, the ``adjusted attributable deposit amount'' 
        shall be determined in accordance with section 5(d)(3)(C) of 
        the Federal Deposit Insurance Act.
    (i) Adjustment to the Adjusted Attributable Deposit Amount for 
Certain Bank Insurance Fund Member Banks.--Section 5(d)(3) of the 
Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended--
            (1) in subparagraph (C), by striking ``The adjusted 
        attributable deposit amount'' and inserting ``Except as 
        provided in subparagraph (K), the adjusted attributable deposit 
        amount''; and
            (2) by adding at the end the following new subparagraph:
                    ``(K) Adjustment of adjusted attributable deposit 
                amount.--The amount determined under subparagraph 
                (C)(i) for deposits acquired by March 31, 1995, shall 
                be reduced by 20 percent for purposes of computing the 
                adjusted attributable deposit amount for the payment of 
                any assessment for any semiannual period after the date 
                of the enactment of the Federal Deposit Insurance Funds 
                and Regulatory Relief Act of 1996 (other than the 
                special assessment imposed under section 101(a) of such 
                Act), for a Bank Insurance Fund member bank that, as of 
                June 30, 1995--
                            ``(i) had an adjusted attributable deposit 
                        amount that was less than 50 percent of the 
                        total deposits of that member bank; or
                            ``(ii)(I) had an adjusted attributable 
                        deposit amount equal to less than 75 percent of 
                        the total assessable deposits of that member 
                        bank;
                            ``(II) had total assessable deposits 
                        greater than $5,000,000,000; and
                            ``(III) was owned or controlled by a bank 
                        holding company that owned or controlled 
                        insured depository institutions having an 
                        aggregate amount of deposits insured or treated 
                        as insured by the Bank Insurance Fund greater 
                        than the aggregate amount of deposits insured 
                        or treated as insured by the Savings 
                        Association Insurance Fund.''.
    (j) Adjustment of Special Assessment for Certain Savings 
Associations.--
            (1) Special assessment reduction.--For purposes of 
        computing the special assessment imposed under this section, in 
        the case of any converted association, the amount of any 
        deposits of such association which were insured by the Savings 
        Association Insurance Fund as of March 31, 1995, shall be 
        reduced by 20 percent.
            (2) Converted association.--For purposes of this 
        subsection, the term ``converted association'' means--
                    (A) any Federal savings association--
                            (i) that is a member of the Savings 
                        Association Insurance Fund and that has 
                        deposits subject to assessment by that fund 
                        which did not exceed $4,000,000,000, as of 
                        March 31, 1995; and
                            (ii) that had been, or is a successor by 
                        merger, acquisition, or otherwise to an 
                        institution that had been, a State savings 
                        bank, the deposits of which were insured by the 
                        Federal Deposit Insurance Corporation before 
                        August 9, 1989, that converted to a Federal 
                        savings association pursuant to section 5(i) of 
                        the Home Owners' Loan Act before January 1, 
                        1985;
                    (B) a State depository institution that is a member 
                of the Savings Association Insurance Fund that had been 
                a State savings bank before October 15, 1982, and was a 
                Federal savings association on August 9, 1989;
                    (C) an insured bank that--
                            (i) was established de novo in order to 
                        acquire the deposits of a savings association 
                        in default or in danger of default;
                            (ii) did not open for business before 
                        acquiring the deposits of such savings 
                        association; and
                            (iii) was a Savings Association Insurance 
                        Fund member as of the date of enactment of this 
                        Act; and
                    (D) an insured bank that--
                            (i) resulted from a savings association 
                        before December 19, 1991, in accordance with 
                        section 5(d)(2)(G) of the Federal Deposit 
                        Insurance Act; and
                            (ii) had an increase in its capital in 
                        conjunction with the conversion in an amount 
                        equal to more than 75 percent of the capital of 
                        the institution on the day before the date of 
                        the conversion.
    (k) Deposit of Fees into SAIF.--
            (1) In general.--Section 5(d)(2)(E)(i) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1815(d)(2)(E)(i)) is amended 
        by striking ``subparagraph (F)) which--'' and all that follows 
        through the semicolon at the end and inserting ``subparagraph 
        (F)) which shall be deposited in the Savings Association 
        Insurance Fund;''.
            (2) Treatment of prior fees.--All fees collected by the 
        Federal Deposit Insurance Corporation pursuant to section 
        5(d)(2)(E)(i) of the Federal Deposit Insurance Act before the 
        date of the enactment of this Act which are held by the 
        Corporation as of such date shall be deposited in the Savings 
        Association Insurance Fund in accordance with such section, as 
        amended by paragraph (1) of this subsection.

          Subtitle B--Status of Banks and Savings Associations

SEC. 111. COMPREHENSIVE REVIEW OF CHARTER MERGER.

    It is the intent of the Congress--
            (1) acting through the Committee on Banking and Financial 
        Services of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate, to make a 
        comprehensive review of all issues relating to the merger of 
        the charters of banks and savings associations;
            (2) to pass out of each House of the Congress, by no later 
        than September 30, 1997, appropriate legislation to provide for 
        such merger; and
            (3) to enact such legislation before the effective date of 
        subtitle C.

                 Subtitle C--Merger of Insurance Funds

SEC. 121. MERGER OF BIF AND SAIF.

    (a) In General.--
            (1) Merger.--The Bank Insurance Fund and the Savings 
        Association Insurance Fund shall be merged into the Deposit 
        Insurance Fund established by section 11(a)(4) of the Federal 
        Deposit Insurance Act, as amended by this section.
            (2) Disposition of assets and liabilities.--All assets and 
        liabilities of the Bank Insurance Fund and the Savings 
        Association Insurance Fund shall be transferred to the Deposit 
        Insurance Fund.
            (3) No separate existence.--The separate existence of the 
        Bank Insurance Fund and the Savings Association Insurance Fund 
        shall cease.
    (b) Special Reserve of the Deposit Insurance Fund.--
            (1) In general.--Immediately before the merger of the Bank 
        Insurance Fund and the Savings Association Insurance Fund, if 
        the reserve ratio of the Savings Association Insurance Fund 
        exceeds the designated reserve ratio, the amount by which that 
        reserve ratio exceeds the designated reserve ratio shall be 
        placed in the Special Reserve of the Deposit Insurance Fund, 
        established under section 11(a)(5) of the Federal Deposit 
        Insurance Act, as amended by this section.
            (2) Definition.--For purposes of this subsection, the term 
        ``reserve ratio'' means the ratio of the net worth of the 
        Savings Association Insurance Fund to the aggregate estimated 
        amount of deposits insured by the Savings Association Insurance 
        Fund.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 1998, if no insured depository 
institution is a savings association on such date.
    (d) Technical and Conforming Amendments.--
            (1) Deposit insurance fund.--Section 11(a)(4) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is 
        amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C);
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Establishment.--There is established the 
                Deposit Insurance Fund, which the Corporation shall--
                            ``(i) maintain and administer;
                            ``(ii) use to carry out its insurance 
                        purposes in the manner provided by this 
                        subsection; and
                            ``(iii) invest in accordance with section 
                        13(a).
                    ``(B) Uses.--The Deposit Insurance Fund shall be 
                available to the Corporation for use with respect to 
                Deposit Insurance Fund members.''; and
                    (C) by striking ``(4) General provisions relating 
                to funds.--'' and inserting the following:
            ``(4) Establishment of the deposit insurance fund.--''.
            (2) Other references.--Section 11(a)(4)(C) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated 
        by paragraph (1) of this subsection) is amended by striking 
        ``Bank Insurance Fund and the Savings Association Insurance 
        Fund'' and inserting ``Deposit Insurance Fund''.
            (3) Deposits into fund.--Section 11(a)(4) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by 
        adding at the end the following new subparagraph:
                    ``(D) Deposits.--All amounts assessed against 
                insured depository institutions by the Corporation 
                shall be deposited in the Deposit Insurance Fund.''.
            (4) Special reserve of deposits.--Section 11(a)(5) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended 
        to read as follows:
            ``(5) Special reserve of deposit insurance fund.--
                    ``(A) Establishment.--
                            ``(i) In general.--There is established a 
                        Special Reserve of the Deposit Insurance Fund, 
                        which shall be administered by the Corporation 
                        and shall be invested in accordance with 
                        section 13(a).
                            ``(ii) Limitation.--The Corporation shall 
                        not provide any assessment credit, refund, or 
                        other payment from any amount in the Special 
                        Reserve.
                    ``(B) Emergency use of special reserve.--
                Notwithstanding subparagraph (A)(ii), the Corporation 
                may, in its sole discretion, transfer amounts from the 
                Special Reserve to the Deposit Insurance Fund, for the 
                purposes set forth in paragraph (4), only if--
                            ``(i) the reserve ratio of the Deposit 
                        Insurance Fund is less than 50 percent of the 
                        designated reserve ratio; and
                            ``(ii) the Corporation expects the reserve 
                        ratio of the Deposit Insurance Fund to remain 
                        at less than 50 percent of the designated 
                        reserve ratio for each of the next 4 calendar 
                        quarters.
                    ``(C) Exclusion of special reserve in calculating 
                reserve ratio.--Notwithstanding any other provision of 
                law, any amounts in the Special Reserve shall be 
                excluded in calculating the reserve ratio of the 
                Deposit Insurance Fund under section 7.''.
            (5) Federal home loan bank act.--Section 21B(f)(2)(C)(ii) 
        of the Federal Home Loan Bank Act (12 U.S.C. 
        1441b(f)(2)(C)(ii)) is amended--
                    (A) in subclause (I), by striking ``to Savings 
                Associations Insurance Fund members'' and inserting 
                ``to insured depository institutions, and their 
                successors, which were Savings Association Insurance 
                Fund members on September 1, 1995''; and
                    (B) in subclause (II), by striking ``to Savings 
                Associations Insurance Fund members'' and inserting 
                ``to insured depository institutions, and their 
                successors, which were Savings Association Insurance 
                Fund members on September 1, 1995''.
            (6) Repeals.--
                    (A) Section 3.--Section 3(y) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813(y)) is amended to read as 
                follows:
    ``(y) Definitions Relating to the Deposit Insurance Fund.--
            ``(1) Deposit insurance fund.--The term `Deposit Insurance 
        Fund' means the fund established under section 11(a)(4).
            ``(2) Reserve ratio.--The term `reserve ratio' means the 
        ratio of the net worth of the Deposit Insurance Fund to 
        aggregate estimated insured deposits held in all insured 
        depository institutions.
            ``(3) Designated reserve ratio.--The designated reserve 
        ratio of the Deposit Insurance Fund for each year shall be--
                    ``(A) 1.25 percent of estimated insured deposits; 
                or
                    ``(B) a higher percentage of estimated insured 
                deposits that the Board of Directors determines to be 
                justified for that year by circumstances raising a 
                significant risk of substantial future losses to the 
                fund.
                    (B) Section 7.--Section 7 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1817) is amended--
                            (i) by striking subsection (l);
                            (ii) by redesignating subsections (m) and 
                        (n) as subsections (l) and (m), respectively;
                            (iii) in subsection (b)(2), by striking 
                        subparagraphs (B) and (F), and by redesignating 
                        subparagraphs (C), (E), (G), and (H) as 
                        subparagraphs (B) through (E), respectively.
                    (C) Section 11.--Section 11(a) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--
                            (i) by striking paragraphs (6) and (7); and
                            (ii) by redesignating paragraph (8) as 
                        paragraph (6).
            (7) Section 5136 of the revised statutes.--The paragraph 
        designated the ``Eleventh'' of section 5136 of the Revised 
        Statutes (12 U.S.C. 24) is amended in the 5th sentence, by 
        striking ``affected deposit insurance fund'' and inserting 
        ``Deposit Insurance Fund''.
            (8) Investments promoting public welfare; limitations on 
        aggregate investments.--The 23d undesignated paragraph of 
        section 9 of the Federal Reserve Act (12 U.S.C. 338a) is 
        amended in the 4th sentence, by striking ``affected deposit 
        insurance fund'' and inserting ``Deposit Insurance Fund''.
            (9) Advances to critically undercapitalized depository 
        institutions.--Section 10B(b)(3)(A)(ii) of the Federal Reserve 
        Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking ``any 
        deposit insurance fund in'' and inserting ``the Deposit 
        Insurance Fund of''.
            (10) Amendments to the balanced budget and emergency 
        deficit control act of 1985.--Section 255(g)(1)(A) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 905(g)(1)(A)) is amended--
                    (A) by striking ``Bank Insurance Fund'' and 
                inserting ``Deposit Insurance Fund''; and
                    (B) by striking ``Federal Deposit Insurance 
                Corporation, Savings Association Insurance Fund;''.
            (11) Further amendments to the federal home loan bank 
        act.--The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) 
        is amended--
                    (A) in section 11(k) (12 U.S.C. 1431(k))--
                            (i) in the subsection heading, by striking 
                        ``SAIF'' and inserting ``the Deposit Insurance 
                        Fund''; and
                            (ii) by striking ``Savings Association 
                        Insurance Fund'' each place such term appears 
                        and inserting ``Deposit Insurance Fund'';
                    (B) in section 21A(b)(4)(B) (12 U.S.C. 
                1441a(b)(4)(B)), by striking ``affected deposit 
                insurance fund'' and inserting ``Deposit Insurance 
                Fund'';
                    (C) in section 21A(b)(6)(B) (12 U.S.C. 
                1441a(b)(6)(B))--
                            (i) in the subparagraph heading, by 
                        striking ``SAIF-insured banks'' and inserting 
                        ``Charter conversions''; and
                            (ii) by striking ``Savings Association 
                        Insurance Fund member'' and inserting ``savings 
                        association'';
                    (D) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 
                1441a(b)(10)(A)(iv)(II)), by striking ``Savings 
                Association Insurance Fund'' and inserting ``Deposit 
                Insurance Fund'';
                    (E) in section 21B(e) (12 U.S.C. 1441b(e))--
                            (i) in paragraph (5), by inserting ``as of 
                        the date of funding'' after ``Savings 
                        Association Insurance Fund members'' each place 
                        such term appears;
                            (ii) by striking paragraph (7); and
                            (iii) by redesignating paragraph (8) as 
                        paragraph (7); and
                    (F) in section 21B(k) (12 U.S.C. 1441b(k))--
                            (i) by striking paragraph (8); and
                            (ii) by redesignating paragraphs (9) and 
                        (10) as paragraphs (8) and (9), respectively.
            (12) Amendments to the home owners' loan act.--The Home 
        Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
                    (A) in section 5 (12 U.S.C. 1464)--
                            (i) in subsection (c)(5)(A), by striking 
                        ``that is a member of the Bank Insurance 
                        Fund'';
                            (ii) in subsection (c)(6), by striking ``As 
                        used in this subsection--'' and inserting ``For 
                        purposes of this subsection, the following 
                        definitions shall apply:'';
                            (iii) in subsection (o)(1), by striking 
                        ``that is a Bank Insurance Fund member'';
                            (iv) in subsection (o)(2)(A), by striking 
                        ``a Bank Insurance Fund member until such time 
                        as it changes its status to a Savings 
                        Association Insurance Fund member'' and 
                        inserting ``insured by the Deposit Insurance 
                        Fund'';
                            (v) in subsection (t)(5)(D)(iii)(II), by 
                        striking ``affected deposit insurance fund'' 
                        and inserting ``Deposit Insurance Fund'';
                            (vi) in subsection (t)(7)(C)(i)(I), by 
                        striking ``affected deposit insurance fund'' 
                        and inserting ``Deposit Insurance Fund''; and
                            (vii) in subsection (v)(2)(A)(i), by 
                        striking ``, the Savings Association Insurance 
                        Fund'' and inserting ``or the Deposit Insurance 
                        Fund''; and
                    (B) in section 10 (12 U.S.C. 1467a)--
                            (i) in subsection (e)(1)(A)(iii)(VII), by 
                        adding ``or'' at the end;
                            (ii) in subsection (e)(1)(A)(iv), by adding 
                        ``and'' at the end;
                            (iii) in subsection (e)(1)(B), by striking 
                        ``Savings Association Insurance Fund or Bank 
                        Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund'';
                            (iv) in subsection (e)(2), by striking 
                        ``Savings Association Insurance Fund or the 
                        Bank Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund''; and
                            (v) in subsection (m)(3), by striking 
                        subparagraph (E), and by redesignating 
                        subparagraphs (F), (G), and (H) as 
                        subparagraphs (E), (F), and (G), respectively.
            (13) Amendments to the national housing act.--The National 
        Housing Act (12 U.S.C. 1701 et seq.) is amended--
                    (A) in section 317(b)(1)(B) (12 U.S.C. 
                1723i(b)(1)(B)), by striking ``Bank Insurance Fund for 
                banks or through the Savings Association Insurance Fund 
                for savings associations'' and inserting ``Deposit 
                Insurance Fund''; and
                    (B) in section 526(b)(1)(B)(ii) (12 U.S.C. 1735f-
                14(b)(1)(B)(ii)), by striking ``Bank Insurance Fund for 
                banks and through the Savings Association Insurance 
                Fund for savings associations'' and inserting ``Deposit 
                Insurance Fund''.
            (14) Further amendments to the federal deposit insurance 
        act.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et 
        seq.) is amended--
                    (A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by 
                striking subparagraph (B) and inserting the following:
                    ``(B) includes any former savings association.'';
                    (B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by 
                striking ``the Bank Insurance Fund or the Savings 
                Association Insurance Fund;'' and inserting ``Deposit 
                Insurance Fund,'';
                    (C) in section 5(d) (12 U.S.C. 1815(d)), by 
                striking paragraphs (2) and (3);
                    (D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--
                            (i) in subparagraph (A), by striking 
                        ``reserve ratios in the Bank Insurance Fund and 
                        the Savings Association Insurance Fund'' and 
                        inserting ``the reserve ratio of the Deposit 
                        Insurance Fund'';
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
            ``(2) Fee credited to the deposit insurance fund.--The fee 
        paid by the depository institution under paragraph (1) shall be 
        credited to the Deposit Insurance Fund.'';
                            (iii) by striking ``(1) Uninsured 
                        institutions.--''; and
                            (iv) by redesignating subparagraphs (A) and 
                        (C) as paragraphs (1) and (3), respectively, 
                        and moving the margins 2 ems to the left;
                    (E) in section 5(e) (12 U.S.C. 1815(e))--
                            (i) in paragraph (5)(A), by striking ``Bank 
                        Insurance Fund or the Savings Association 
                        Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund'';
                            (ii) by striking paragraph (6); and
                            (iii) by redesignating paragraphs (7), (8), 
                        and (9) as paragraphs (6), (7), and (8), 
                        respectively;
                    (F) in section 6(5) (12 U.S.C. 1816(5)), by 
                striking ``Bank Insurance Fund or the Savings 
                Association Insurance Fund'' and inserting ``Deposit 
                Insurance Fund'';
                    (G) in section 7(b) (12 U.S.C. 1817(b))--
                            (i) in paragraph (1)(D), by striking ``each 
                        deposit insurance fund'' and inserting ``the 
                        Deposit Insurance Fund'';
                            (ii) in clauses (i)(I) and (iv) of 
                        paragraph (2)(A), by striking ``each deposit 
                        insurance fund'' each place such term appears 
                        and inserting ``the Deposit Insurance Fund'';
                            (iii) in paragraph (2)(A)(iii), by striking 
                        ``a deposit insurance fund'' and inserting 
                        ``the Deposit Insurance Fund'';
                            (iv) by striking clause (iv) of paragraph 
                        (2)(A);
                            (v) in paragraph (2)(C) (as redesignated by 
                        paragraph (6)(B) of this subsection)--
                                    (I) by striking ``any deposit 
                                insurance fund'' and inserting ``the 
                                Deposit Insurance Fund''; and
                                    (II) by striking ``that fund'' each 
                                place such term appears and inserting 
                                ``the Deposit Insurance Fund'';
                            (vi) in paragraph (2)(D) (as redesignated 
                        by paragraph (6)(B) of this subsection)--
                                    (I) in the subparagraph heading, by 
                                striking ``funds achieve'' and 
                                inserting ``fund achieves''; and
                                    (II) by striking ``a deposit 
                                insurance fund'' and inserting ``the 
                                Deposit Insurance Fund'';
                            (vii) in paragraph (3)--
                                    (I) in the paragraph heading, by 
                                striking ``funds'' and inserting 
                                ``fund'';
                                    (II) by striking ``that fund'' each 
                                place such term appears and inserting 
                                ``the Deposit Insurance Fund'';
                                    (III) in subparagraph (A), by 
                                striking ``Except as provided in 
                                paragraph (2)(F), if'' and inserting 
                                ``If'';
                                    (IV) in subparagraph (A), by 
                                striking ``any deposit insurance fund'' 
                                and inserting ``the Deposit Insurance 
                                Fund''; and
                                    (V) by striking subparagraphs (C) 
                                and (D) and inserting the following:
                    ``(C) Amending schedule.--The Corporation may, by 
                regulation, amend a schedule promulgated under 
                subparagraph (B).''; and
                            (viii) in paragraph (6)--
                                    (I) by striking ``any such 
                                assessment'' and inserting ``any such 
                                assessment is necessary'';
                                    (II) by striking ``(A) is 
                                necessary--'';
                                    (III) by striking subparagraph (B);
                                    (IV) by redesignating clauses (i), 
                                (ii), and (iii) as subparagraphs (A), 
                                (B), and (C), respectively, and moving 
                                the margins 2 ems to the left; and
                                    (V) in subparagraph (C) (as 
                                redesignated), by striking ``; and'' 
                                and inserting a period;
                    (H) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by 
                striking ``, except that--'' and all that follows 
                through the end of the paragraph and inserting a 
                period;
                    (I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--
                            (i) by striking subparagraph (B);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                            (iii) in subparagraph (B) (as 
                        redesignated), by striking ``subparagraphs (A) 
                        and (B)'' and inserting ``subparagraph (A)'';
                    (J) in section 11A(a) (12 U.S.C. 1821a(a))--
                            (i) in paragraph (2), by striking 
                        ``liabilities.--'' and all that follows through 
                        ``Except'' and inserting ``liabilities.--
                        Except'';
                            (ii) by striking paragraph (2)(B); and
                            (iii) in paragraph (3), by striking ``the 
                        Bank Insurance Fund, the Savings Association 
                        Insurance Fund,'' and inserting ``the Deposit 
                        Insurance Fund'';
                    (K) in section 11A(b) (12 U.S.C. 1821a(b)), by 
                striking paragraph (4);
                    (L) in section 11A(f) (12 U.S.C. 1821a(f)), by 
                striking ``Savings Association Insurance Fund'' and 
                inserting ``Deposit Insurance Fund'';
                    (M) in section 13 (12 U.S.C. 1823)--
                            (i) in subsection (a)(1), by striking 
                        ``Bank Insurance Fund, the Savings Association 
                        Insurance Fund,'' and inserting ``Deposit 
                        Insurance Fund, the Special Reserve of the 
                        Deposit Insurance Fund,'';
                            (ii) in subsection (c)(4)(E)--
                                    (I) in the subparagraph heading, by 
                                striking ``funds'' and inserting 
                                ``fund''; and
                                    (II) in clause (i), by striking 
                                ``any insurance fund'' and inserting 
                                ``the Deposit Insurance Fund'';
                            (iii) in subsection (c)(4)(G)(ii)--
                                    (I) by striking ``appropriate 
                                insurance fund'' and inserting 
                                ``Deposit Insurance Fund'';
                                    (II) by striking ``the members of 
                                the insurance fund (of which such 
                                institution is a member)'' and 
                                inserting ``insured depository 
                                institutions'';
                                    (III) by striking ``each member's'' 
                                and inserting ``each insured depository 
                                institution's''; and
                                    (IV) by striking ``the member's'' 
                                each place such term appears and 
                                inserting ``the institution's'';
                            (iv) in subsection (c), by striking 
                        paragraph (11);
                            (v) in subsection (h), by striking ``Bank 
                        Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund'';
                            (vi) in subsection (k)(4)(B)(i), by 
                        striking ``Savings Association Insurance Fund'' 
                        and inserting ``Deposit Insurance Fund''; and
                            (vii) in subsection (k)(5)(A), by striking 
                        ``Savings Association Insurance Fund'' and 
                        inserting ``Deposit Insurance Fund'';
                    (N) in section 14(a) (12 U.S.C. 1824(a)) in the 5th 
                sentence--
                            (i) by striking ``Bank Insurance Fund or 
                        the Savings Association Insurance Fund'' and 
                        inserting ``Deposit Insurance Fund''; and
                            (ii) by striking ``each such fund'' and 
                        inserting ``the Deposit Insurance Fund'';
                    (O) in section 14(b) (12 U.S.C. 1824(b)), by 
                striking ``Bank Insurance Fund or Savings Association 
                Insurance Fund'' and inserting ``Deposit Insurance 
                Fund'';
                    (P) in section 14(c) (12 U.S.C. 1824(c)), by 
                striking paragraph (3);
                    (Q) in section 14(d) (12 U.S.C. 1824(d))--
                            (i) by striking ``BIF'' each place such 
                        term appears and inserting ``DIF''; and
                            (ii) by striking ``Bank Insurance Fund'' 
                        each place such term appears and inserting 
                        ``Deposit Insurance Fund'';
                    (R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--
                            (i) by striking ``the Bank Insurance Fund 
                        or Savings Association Insurance Fund, 
                        respectively'' each place such term appears and 
                        inserting ``the Deposit Insurance Fund''; and
                            (ii) in subparagraph (B), by striking ``the 
                        Bank Insurance Fund or the Savings Association 
                        Insurance Fund, respectively'' and inserting 
                        ``the Deposit Insurance Fund'';
                    (S) in section 17(a) (12 U.S.C. 1827(a))--
                            (i) in the subsection heading, by striking 
                        ``BIF, SAIF,'' and inserting ``the Deposit 
                        Insurance Fund''; and
                            (ii) in paragraph (1), by striking ``the 
                        Bank Insurance Fund, the Savings Association 
                        Insurance Fund,'' each place such term appears 
                        and inserting ``the Deposit Insurance Fund'';
                    (T) in section 17(d) (12 U.S.C. 1827(d)), by 
                striking ``the Bank Insurance Fund, the Savings 
                Association Insurance Fund,'' each place such term 
                appears and inserting ``the Deposit Insurance Fund'';
                    (U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--
                            (i) by striking ``Savings Association 
                        Insurance Fund'' each place such term appears 
                        and inserting ``Deposit Insurance Fund''; and
                            (ii) in subparagraph (C), by striking ``or 
                        the Bank Insurance Fund'';
                    (V) in section 18(p) (12 U.S.C. 1828(p)), by 
                striking ``deposit insurance funds'' and inserting 
                ``Deposit Insurance Fund'';
                    (W) in section 24 (12 U.S.C. 1831a) in subsections 
                (a)(1) and (d)(1)(A), by striking ``appropriate deposit 
                insurance fund'' each place such term appears and 
                inserting ``Deposit Insurance Fund'';
                    (X) in section 28 (12 U.S.C. 1831e), by striking 
                ``affected deposit insurance fund'' each place such 
                term appears and inserting ``Deposit Insurance Fund'';
                    (Y) by striking section 31 (12 U.S.C. 1831h);
                    (Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by 
                striking ``affected deposit insurance fund'' and 
                inserting ``Deposit Insurance Fund'';
                    (AA) in section 38(a) (12 U.S.C. 1831o(a)) in the 
                subsection heading, by striking ``Funds'' and inserting 
                ``Fund'';
                    (BB) in section 38(k) (12 U.S.C. 1831o(k))--
                            (i) in paragraph (1), by striking ``a 
                        deposit insurance fund'' and inserting ``the 
                        Deposit Insurance Fund''; and
                            (ii) in paragraph (2)(A)--
                                    (I) by striking ``A deposit 
                                insurance fund'' and inserting ``The 
                                Deposit Insurance Fund''; and
                                    (II) by striking ``the deposit 
                                insurance fund's outlays'' and 
                                inserting ``the outlays of the Deposit 
                                Insurance Fund''; and
                    (CC) in section 38(o) (12 U.S.C. 1831o(o))--
                            (i) by striking ``Associations.--'' and all 
                        that follows through ``Subsections (e)(2)'' and 
                        inserting ``Associations.--Subsections 
                        (e)(2)'';
                            (ii) by redesignating subparagraphs (A), 
                        (B), and (C) as paragraphs (1), (2), and (3), 
                        respectively, and moving the margins 2 ems to 
                        the left; and
                            (iii) in paragraph (1) (as redesignated), 
                        by redesignating clauses (i) and (ii) as 
                        subparagraphs (A) and (B), respectively, and 
                        moving the margins 2 ems to the left.
            (15) Amendments to the financial institutions reform, 
        recovery, and enforcement act of 1989.--The Financial 
        Institutions Reform, Recovery, and Enforcement Act is amended--
                    (A) in section 951(b)(3)(B) (12 U.S.C. 
                1833a(b)(3)(B)), by striking ``Bank Insurance Fund, the 
                Savings Association Insurance Fund,'' and inserting 
                ``Deposit Insurance Fund''; and
                    (B) in section 1112(c)(1)(B) (12 U.S.C. 
                3341(c)(1)(B)), by striking ``Bank Insurance Fund, the 
                Savings Association Insurance Fund,'' and inserting 
                ``Deposit Insurance Fund''.
            (16) Amendment to the bank enterprise act of 1991.--Section 
        232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C. 
        1834(a)(1)) is amended by striking ``section 7(b)(2)(H)'' and 
        inserting ``section 7(b)(2)(G)''.
            (17) Amendment to the bank holding company act.--Section 
        2(j)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1841(j)(2)) is amended by striking ``Savings Association 
        Insurance Fund'' and inserting ``Deposit Insurance Fund''.

                 Subtitle D--FICO INTEREST COSTS SHARED

SEC. 131. FINANCING CORPORATION ASSESSMENTS SHARED PROPORTIONALLY BY 
              ALL INSURED DEPOSITORY INSTITUTIONS.

    (a) In General.--Section 21 of the Federal Home Loan Bank Act (12 
U.S.C. 1441) is amended--
            (1) in subsection (f)(2)--
                    (A) in the matter immediately preceding 
                subparagraph (A)--
                            (i) by striking ``Savings Association 
                        Insurance Fund member'' and inserting ``insured 
                        depository institution''; and
                            (ii) by striking ``members'' and inserting 
                        ``institutions''; and
                    (B) by striking ``, except that--'' and all that 
                follows through the end of the paragraph and inserting 
                ``, except that--
                    ``(A) the Financing Corporation shall have first 
                priority to make the assessment; and
                    ``(B) no limitation under clause (i) or (iii) of 
                section 7(b)(2)(A) of the Federal Deposit Insurance Act 
                shall apply for purposes of this paragraph.''; and
            (2) in subsection (k)--
                    (A) by striking ``section--'' and inserting 
                ``section, the following definitions shall apply:'';
                    (B) by striking paragraph (1);
                    (C) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(3) Insured depository institution.--The term `insured 
        depository institution' has the same meaning as in section 3 of 
        the Federal Deposit Insurance Act.''.
    (b) Conforming Amendment.--Section 7(b)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)) is amended by striking 
subparagraph (D).
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 1998.

         Subtitle E--Refunds of Excess Amounts in Deposit Fund

SEC. 141. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN EXCESS OF 
              DESIGNATED RESERVE AMOUNT.

    (a) In General.--Subsection (e) of section 7 of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(e)) is amended to read as follows:
    ``(e) Refunds.--
            ``(1) Overpayments.--In the case of any payment of an 
        assessment by an insured depository institution in excess of 
        the amount due to the Corporation, the Corporation may--
                    ``(A) refund the amount of the excess payment to 
                the insured depository institution; or
                    ``(B) credit such excess amount toward the payment 
                of subsequent semiannual assessments until such credit 
                is exhausted.
            ``(2) Balance in insurance fund in excess of designated 
        reserve.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), if, as of the end of any semiannual assessment 
                period, the amount of the actual reserves in--
                            ``(i) the Bank Insurance Fund (until the 
                        merger of such fund into the Deposit Insurance 
                        Fund pursuant to section 121 of the Federal 
                        Deposit Insurance Funds and Regulatory Relief 
                        Act of 1996); or
                            ``(ii) the Deposit Insurance Fund (after 
                        the establishment of such fund),
                exceeds the balance required to meet the designated 
                reserve ratio applicable with respect to such fund, 
                such excess amount shall be refunded to insured 
                depository institutions by the Corporation on such 
                basis as the Board of Directors determines to be 
                appropriate, taking into account the factors considered 
                under the risk-based assessment system.
                    ``(B) Refund not to exceed previous semiannual 
                assessment.--The amount of any refund under this 
                paragraph to any member of a deposit insurance fund for 
                any semiannual assessment period may not exceed the 
                total amount of assessments paid by such member to the 
                insurance fund with respect to such period.
                    ``(C) Refund limitation for certain institutions.--
                No refund may be made under this paragraph with respect 
                to the amount of any assessment paid for any semiannual 
                assessment period by any insured depository institution 
                described in clause (v) of subsection (b)(2)(A).''.
    (b) Effective Date.--Paragraph (2) of section 7(e) of the Federal 
Deposit Insurance Act (as amended by subsection (a) of this section) 
shall apply with respect to semiannual assessment periods ending on or 
after December 31, 1995.

                 Subtitle F--Limitation on Assessments

SEC. 151. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN THE RESERVE 
              RATIO OF A DEPOSIT INSURANCE FUND.

    (a) In General.--Section 7(b)(2)(A)(i) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the matter 
preceding subclause (I) by inserting ``when necessary, and only to the 
extent necessary'' after ``insured depository institutions''.
    (b) Limitation on Assessment.--Section 7(b)(2)(A)(iii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is amended 
to read as follows:
                            ``(iii) Limitation on assessment.--Except 
                        as provided in clause (v), the Board of 
                        Directors shall not set semiannual assessments 
                        with respect to a deposit insurance fund in 
                        excess of the amount needed--
                                    ``(I) to maintain the reserve ratio 
                                of the fund at the designated reserve 
                                ratio; or
                                    ``(II) if the reserve ratio is less 
                                than the designated reserve ratio, to 
                                increase the reserve ratio to the 
                                designated reserve ratio.''.
    (c) Exception to Limitation on Assessments.--Section 7(b)(2)(A) of 
the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)) is amended 
by adding at the end the following new clause:
                            ``(v) Exception to limitation on 
                        assessments.--The Board of Directors may set 
                        semiannual assessments in excess of the amount 
permitted under clauses (i) and (iii) with respect to insured 
depository institutions that exhibit financial, operational, or 
compliance weaknesses ranging from moderately severe to unsatisfactory, 
or are not well capitalized, as that term is defined in section 38.''.

                  Subtitle G--Miscellaneous Provisions

SEC. 161. DEFINITIONS.

    The following definitions shall apply for purposes of this title 
and title II:
            (1) Bank Insurance Fund.--The term ``Bank Insurance Fund'' 
        means the fund established pursuant to section (11)(a)(5)(A) of 
        the Federal Deposit Insurance Act, as that section existed on 
        the day before the date of enactment of this Act.
            (2) Member of bif and saif.--The terms ``Bank Insurance 
        Fund member'' and ``Savings Association Insurance Fund member'' 
        have the same meanings as in section 7(l) of the Federal 
        Deposit Insurance Act.
            (3) Definitions from federal deposit insurance act.--The 
        terms ``bank'', ``Board of Directors'', ``Corporation'', 
        ``insured depository institution'', ``Federal savings 
        association'', ``savings association'', ``State savings bank'', 
        and ``State depository institution'' have the same meanings as 
        in section 3 of the Federal Deposit Insurance Act.
            (4) Deposit insurance fund.--The term ``Deposit Insurance 
        Fund'' means the fund established under section 11(a)(4) of the 
        Federal Deposit Insurance Act (as amended by section 121(d) of 
        this Act).
            (5) Depository institution holding company.--The term 
        ``depository institution holding company'' has the same meaning 
        as in section 3 of the Federal Deposit Insurance Act.
            (6) Designated reserve ratio.--The term ``designated 
        reserve ratio'' has the same meaning as in section 
        7(b)(2)(A)(iv) of the Federal Deposit Insurance Act.
            (7) SAIF.--The term ``Savings Association Insurance Fund'' 
        means the fund established pursuant to section 11(a)(6)(A) of 
        the Federal Deposit Insurance Act, as that section existed on 
        the day before the date of enactment of this Act.
            (8) SAIF-assessable deposit.--The term ``SAIF-assessable 
        deposit''--
                    (A) means--
                            (i) a deposit that is subject to assessment 
                        for purposes of the Savings Association 
                        Insurance Fund under the Federal Deposit 
                        Insurance Act; and
                            (ii) a deposit that section 5(d)(3) of the 
                        Federal Deposit Insurance Act treats as insured 
                        by the Savings Association Insurance Fund; and
                    (B) includes any deposit assumed after March 31, 
                1995, if the insured depository institution, the 
                deposits of which are assumed, is not an insured 
                depository institution when the special assessment is 
                imposed under section 101(a).

                   TITLE II--TRANSITIONAL PROVISIONS

SEC. 201. APPLICABILITY OF FICO ASSESSMENTS TO CERTAIN SAIF-ASSESSABLE 
              DEPOSITS UNTIL MERGER OF BIF AND SAIF.

    Notwithstanding the definition in section 21(k)(1) of the Federal 
Home Loan Bank Act, during the period beginning on the 1st day of the 
1st quarter which begins after the date of the enactment of this Act 
and ending on the date on which subtitle C of title I takes effect, any 
Bank Insurance Fund member which has SAIF-assessable deposits shall be 
treated as a Savings Association Insurance Fund member to the extent of 
such SAIF-assessable deposits for purposes of section 21(f)(2) of such 
Act and shall be subject to assessments under such section with respect 
to such deposits.

SEC. 202. DEPOSIT INSURANCE FUND CROSS GUARANTEES.

    (a) In General.--Notwithstanding paragraphs (4)(A), (5)(C), and 
(6)(B) of section 11(a) of the Federal Deposit Insurance Act or any 
other provision of law, during the period beginning on the date of the 
enactment of this Act and ending on the earlier of the date the balance 
in the Savings Association Insurance Fund first equals or exceeds the 
designated reserve ratio applicable to such fund or the date on which 
subtitle C takes effect--
            (1) the balance in the Bank Insurance Fund shall be 
        available to cover, to the extent provided in subsection (b), 
        losses incurred by the Savings Association Insurance Fund if 
        the balance in the Savings Association Insurance Fund is 
        insufficient to cover such losses; and
            (2) the balance in the Savings Association Insurance Fund 
        shall be available to cover losses incurred by the Bank 
        Insurance Fund if the balance in the Bank Insurance Fund is 
        insufficient to cover such losses.
    (b) Maximum Amount of Guarantee.--The total amount of funds 
available for transfer from the Bank Insurance Fund to the Savings 
Association Insurance Fund pursuant to subsection (a)(1) shall not 
exceed the amount equal to--
            (1) the amount which would be in the Savings Association 
        Insurance Fund, as of the date of the enactment of this Act, if 
        the reserve ratio of fund were equal to the designated reserve 
        ratio as of such date; minus
            (2) the amount in the Savings Association Insurance Fund as 
        of such date.
    (c) No Increase in Premiums Authorized Because of the Guarantee.--
Notwithstanding any provision of section 7 of the Federal Deposit 
Insurance Act, the rate of any assessment applicable to any Bank 
Insurance Fund member or Savings Association Insurance Fund member 
under such section may not be increased by the Federal Deposit 
Insurance Corporation by reason of the guarantee established under 
subsection (a) unless a transfer of funds has been made from any such 
fund pursuant to such subsection which has caused the balance in the 
fund to decrease below the designated reserve ratio applicable to such 
fund.

SEC. 203. SAVINGS ASSOCIATION INSURANCE FUND MEMBER ASSESSMENT RATE.

    (a) In General.--Notwithstanding any provision of section 7 of the 
Federal Deposit Insurance Act, during the period beginning on the 1st 
day of the 1st quarter which begins after the date of the enactment of 
this Act and ending on the date on which subtitle C of title I takes 
effect, the semiannual assessments with respect to Savings Association 
Insurance Fund members under section 7 may not exceed the projected 
costs and expenses of the Savings Association Insurance Fund for the 
semiannual period.
    (b) Exception to Limitation on Assessments.--The Board of Directors 
of the Federal Deposit Insurance Corporation may set semiannual 
assessments in excess of the amount permitted under subsection (a) with 
respect to Savings Association Insurance Fund members which have a 
CAMEL rating of 3, 4, or 5 (or an equivalent rating under a comparable 
rating system) to the extent appropriate to effectuate the risk-based 
assessment system established under section 7 of the Federal Deposit 
Insurance Act.
    (c) FICO Assessments Not Included in Limitation.--Subsection (a) 
shall not be construed as limiting the amount of any assessment imposed 
under section 21(f)(2) with respect to any Savings Association 
Insurance Fund member or SAIF-assessable deposits.

SEC. 204. DEPOSIT SHIFTS BETWEEN BIF AND SAIF MEMBER SUBSIDIARIES OF 
              THE SAME HOLDING COMPANY.

    Notwithstanding any provision of section 7 of the Federal Deposit 
Insurance Act, during the period beginning on the 1st day of the 1st 
quarter which begins after the date of the enactment of this Act and 
ending on the date on which subtitle C of title I takes effect, the 
Federal Deposit Insurance Corporation--
            (1) may take into account any deposits which have been 
        shifted from a Savings Association Insurance Fund member 
        subsidiary of a depository institution holding company to a 
        Bank Insurance Fund member subsidiary of the same holding 
        company after the date of the enactment of this Act in 
        determining the amount of the assessment rate applicable to 
        Savings Association Insurance Fund members for any semiannual 
        period which begins during such period; and
            (2) may, if the Corporation determines that the aggregate 
        amount of deposits of Savings Association Insurance Fund member 
        subsidiaries of a depository institution holding company which 
        have been shifted from such subsidiaries to Bank Insurance Fund 
        member subsidiaries of the same depository institution holding 
        company after the date of the enactment of this Act exceeds 15 
        percent of the aggregate amount of the deposits of such Savings 
        Association Insurance Fund members as of such date, treat the 
        amount of such deposits as SAIF-assessable deposits for 
        purposes of--
                    (A) determining the amount and rate of the 
                assessment imposed on insured depository institutions 
                with respect to SAIF-assessable deposits pursuant to 
                section 7 of the Federal Deposit Insurance Act for any 
                semiannual period which begins during such period; and
                    (B) determining the amount of any assessment 
                imposed by the Financing Corporation on insured 
                depository institutions with respect to SAIF-assessable 
                deposits pursuant to section 21(f)(2) of the Federal 
                Home Loan Bank Act.

SEC. 205. TRANSFER OF FEDERAL RESERVE SURPLUS FUNDS TO MEET FICO 
              CARRYING COSTS.

    (a) In General.--Section 7(a) of the Federal Reserve Act (12 U.S.C. 
289) is amended by adding at the end the following new paragraph:
            ``(4) FICO payments.--
                    ``(A) In general.--During the period beginning on 
                the date of the enactment of the Federal Deposit 
                Insurance Funds and Regulatory Relief Act of 1996 and 
                ending on the date the Financing Corporation ceases to 
                have any obligations outstanding under section 21(e) of 
                the Federal Home Loan Bank Act, the Board shall 
                annually transfer (in addition to the transfers of 
                funds required under paragraph (3)) to the Financing 
                Corporation, from amounts in the surplus funds of the 
                Federal reserve banks, an amount equal to 
                $2,000,000,000 divided by the number of calendar years 
                any portion of which falls within such period for use 
                in accordance with section 21(f)(1) of the Federal Home 
                Loan Bank Act.
                    ``(B) Allocation.--The Board shall annually 
                determine, on the basis of such factors as the Board 
                considers appropriate, the manner in which the amount 
                of the obligation of the Board under subparagraph (A) 
                shall be allocated among the surplus funds of the 
                Federal reserve banks.
                    ``(C) Replenishment of surplus fund prohibited.--No 
                Federal reserve bank may replenish such bank's surplus 
                fund by the amount of any transfer by such bank 
                pursuant to this paragraph.''.
    (b) Conforming Amendment.--Paragraph (1) of section 21(f) of the 
Federal Home Loan Bank Act (12 U.S.C. 1441(f)) is amended to read as 
follows:
            ``(1) Federal reserve surplus.--
                    ``(A) In general.--Amounts transferred to the 
                Financing Corporation by the Board of Governors of the 
                Federal Reserve System from the surplus funds of the 
                Federal reserve banks in accordance with section 
                7(a)(4) of the Federal Reserve Act.
                    ``(B) Treatment in case of bank insurance fund 
                member assessments.--To the extent Bank Insurance Fund 
                members (as defined in section 7(l)(4) of the Federal 
                Deposit Insurance Act) are subject to any assessments 
                under this subsection, the total amount of such 
                assessments which, but for this subparagraph, would be 
                imposed on all such members for any year shall be 
                reduced by the transferred amount referred to in 
                subparagraph (A) with respect to such year.''.

           TITLE III--REDUCTIONS IN GOVERNMENT OVERREGULATION

SEC. 300. SHORT TITLE.

    Titles III and IV may be cited as the ``Financial Institutions 
Regulatory Relief Act of 1996''.

                 Subtitle A--The Home Mortgage Process

SEC. 301. REGULATORY AUTHORITY OVER DISCLOSURES AND ESCROW ACCOUNTS 
              UNDER RESPA TRANSFERRED TO FEDERAL RESERVE BOARD.

    (a) In General.--Sections 4, 5, 6, and 10(d) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) are amended 
by striking ``Secretary'' each place such term appears and inserting 
``Board''.
    (b) Clarification of Purpose.--Section 2(b)(2) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2601(b)(2)) is amended by 
inserting the following before the semicolon at the end: ``without--
                    ``(A) directly regulating settlement services 
                prices; or
                    ``(B) directly regulating wages to bona fide 
                employees that are not designed as a subterfuge to 
                facilitate kickbacks among affiliated companies''.
    (c) Board Defined.--Section 3 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2602) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) the term `Board' means the Board of Governors of the 
        Federal Reserve System.''.
    (d) Negotiated Regulations Under Sections 8 and 9.--Section 8 of 
the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2607) is 
amended by adding at the end the following new subsection:
    ``(e) Negotiated Regulations.--
            ``(1) In general.--The Secretary may not publish a proposed 
        or final regulation under this section and section 9 after the 
        date of the enactment of the Financial Institutions Regulatory 
        Relief Act of 1996 unless the Secretary has used the negotiated 
        rulemaking procedure established under subchapter III of 
        chapter 5 of title 5, United States Code, to attempt to 
        negotiate and develop the rule.
            ``(2) Consistency with purpose.--Any regulation prescribed 
        in accordance with paragraph (1) shall be consistent with the 
        purposes of this title as set forth in section 2.''.
    (e) Administrative Enforcement of Prohibition Against Kickbacks and 
Unearned Fees.--Section 8 of the Real Estate Settlement Procedures Act 
of 1974 (12 U.S.C. 2607) is amended by adding after subsection (e) (as 
added by subsection (d) of this section) the following new subsection:
    ``(f) Administrative Enforcement.--
            ``(1) In general.--Compliance with the requirements of this 
        section and sections 9 and 12 shall be enforced under this 
        Act--
                    ``(A) in the case of an insured depository 
                institution (as defined in section 3 of the Federal 
                Deposit Insurance Act), by the appropriate Federal 
                banking agency (as defined in such section);
                    ``(B) in the case of an insured credit union (as 
                defined in section 101(7) of the Federal Credit Union 
                Act), by the National Credit Union Administration;
                    ``(C) in the case of a bank holding company (as 
                defined in section 2 of the Bank Holding Company Act of 
                1956) and any affiliate of any such holding company 
                (other than an insured depository institution), by the 
                Board;
                    ``(D) in the case of a savings and loan holding 
                company (as defined in section 10 of the Home Owners' 
                Loan Act) and any affiliate of any such holding company 
                (other than an insured depository institution), by the 
                Director of the Office of Thrift Supervision; and
                    ``(E) in the case of any other person, by the 
                Secretary.
            ``(2) Special rules relating to determination of 
        appropriate regulator.--
                    ``(A) Cases of more than 1 appropriate regulator.--
                If, under paragraph (1), a company may be regulated by 
                more than 1 agency, the Board shall determine which 
                agency shall be the responsible agency, notwithstanding 
                paragraph (1).
                    ``(B) Cases involving joint ventures, partnerships, 
                and other affiliated business arrangements.--If any 
                insured depository institution is involved in a joint 
                venture, partnership, or other affiliated business 
                arrangement with any person who is not an insured 
                depository institution, the agency responsible for 
                enforcing this section and sections 9 and 12 with 
                respect to such insured depository institution shall be 
                the agency with such responsibility with respect to 
                such joint venture, partnership, or other affiliated 
                business arrangement.
            ``(3) Interagency cooperation and enforcement guidelines.--
        All the agencies referred to in any subparagraph of paragraph 
        (1) shall cooperate with each other to develop enforcement 
        guidelines and other means for achieving effective compliance 
        with this section and sections 9 and 12.
            ``(4) Preference for civil enforcement over criminal 
        enforcement.--As part of the cooperative efforts required under 
        paragraph (3), the agencies referred to in paragraph (1) shall 
        consider means for achieving compliance with this section and 
        section 9 through the exercise of administrative enforcement 
        authority under this subsection without resorting to criminal 
        enforcement actions under subsection (d) except in appropriate 
        cases.
            ``(5) Effective date.--Paragraphs (1) and (2) shall not 
        take effect until joint interagency cooperation and enforcement 
        guidelines are adopted by all the agencies to which paragraphs 
        (1) and (2) apply and the enforcement authority of the 
        Secretary with respect to this section and sections 9 and 12 
        shall continue until such paragraphs take effect.''.
    (f) Increased Scienter Requirement for Criminal Penalty.--Section 
8(d) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
2607(d)) is amended--
            (1) in paragraph (1), by inserting ``willfully'' after 
        ``persons who''; and
            (2) in paragraph (3), by striking ``was not intentional 
        and''.
    (g) Redesignation of Controlled Business Arrangements as Affiliated 
Business Arrangements.--The Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2601 et seq.) is amended--
            (1) in section 3(7), by striking ``controlled business 
        arrangement'' and inserting ``affiliated business 
        arrangement''; and
            (2) in subsections (c)(4) and (d)(6) of section 8, by 
        striking ``controlled business arrangements'' and inserting 
        ``affiliated business arrangements''.
    (h) Technical and Conforming Amendments.--
            (1) Section 4(a) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2603(a)) is amended by striking 
        ``Federal Home Loan Bank Board'' and inserting ``Director of 
        the Office of Thrift Supervision''.
            (2) Section 8(d)(4) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2607(d)(4)) is amended by 
        inserting ``any other agency described in subsection (f)(1),'' 
        after ``the Secretary,''.
            (3) Section 10(c)(1)(C) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2609(c)(1)(C)) is amended by 
        striking ``Not later than the expiration of the 90-day period 
        beginning on the date of the enactment of the Cranston-Gonzalez 
        National Affordable Housing Act, the'' and inserting ``The''.
            (4) Section 16 of the Real Estate Settlement Procedures Act 
        of 1974 (12 U.S.C. 2614) is amended by striking ``Secretary,'' 
        and inserting ``Board, an agency referred to in any 
        subparagraph of section 8(f)(1),''.
            (5) Section 18 of the Real Estate Settlement Procedures Act 
        of 1974 (12 U.S.C. 2616) is amended--
                    (A) by striking ``Secretary is authorized to'' and 
                inserting ``Board and Secretary may jointly'';
                    (B) by striking ``Secretary'' each place such term 
                appears other than the 1st place and inserting ``Board 
                and Secretary''; and
                    (C) by striking ``determines that such laws'' and 
                inserting ``determine that such laws''.
            (6) Section 19(a) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2617(a)) is amended to read as follows:
    ``(a) Regulations.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        and the Board may prescribe such regulations, make such 
        interpretations, and grant such reasonable exemptions for 
        classes of transactions, as may be necessary to achieve the 
        purposes of this Act.
            ``(2) Application.--
                    ``(A) Board.--The authority of the Board under 
                paragraph (1) shall apply with respect to--
                            ``(i) sections 4, 5, 6, 10, and 12; and
                            ``(ii) sections 3, 7, 17, and 18 to the 
                        extent such sections are applicable with 
                        respect to the sections described in clause 
                        (i).
                    ``(B) Secretary.--The authority of the Secretary 
                under paragraph (1) shall apply with respect to--
                            ``(i) sections 8 and 9; and
                            ``(ii) sections 3, 7, 17, and 18 to the 
                        extent such sections are applicable with 
                        respect to the sections described in clause 
                        (i).''.
            (7) Section 19(b) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2617(b)) is amended by inserting ``, the 
        Board,'' after ``the Secretary''.
            (8) Section 19(c) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2617(c)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``Secretary'' the 1st place 
                        such term appears and inserting ``Board, with 
                        respect to any action to enforce section 4, 5, 
                        6, or 10, and each agency referred to in any 
                        subparagraph of section 8(f)(1), with respect 
                        to any action to enforce section 8, 9, or 
                        12,''; and
                            (ii) by striking ``Secretary'' each place 
                        such term appears other than the 1st place and 
                        inserting ``Board or such other agency''; and
                    (B) in paragraph (2), by striking ``Secretary'' and 
                inserting ``Board or an agency referred to in any 
                subparagraph of section 8(f)(1)''.
            (9) The heading for section 19 of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 2617) is amended 
        to read as follows:

     ``authority of the secretary and the federal reserve board''.

    (i) Repeal of Obsolete Provisions.--The Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended by striking 
sections 13, 14, and 15.

SEC. 302. SIMPLIFICATION AND UNIFICATION OF DISCLOSURES REQUIRED UNDER 
              RESPA AND TILA FOR MORTGAGE TRANSACTIONS.

    (a) In General.--With respect to credit transactions which are 
subject to the Real Estate Settlement Procedures Act of 1974 and the 
Truth in Lending Act, the Board of Governors of the Federal Reserve 
System shall take such action as may be necessary before the end of the 
3-month period beginning on the date of the enactment of this Act--
            (1) to simplify the disclosures applicable to such 
        transactions under such Acts, including the timing of the 
        disclosures; and
            (2) to provide a single format for such disclosures which 
        will satisfy the requirements of each such Act with respect to 
        such transactions.
    (b) Regulations.--To the extent that it is necessary to prescribe 
any regulation in order to effect any changes required to be made under 
subsection (a), the proposed regulation shall be published in the 
Federal Register before the end of the 3-month period referred to in 
subsection (a).
    (c) Recommendations for Legislation.--If the Board of Governors of 
the Federal Reserve System finds that legislative action may be 
necessary or appropriate in order to simplify and unify the disclosure 
requirements under the Real Estate Settlement Procedures Act of 1974 
and the Truth in Lending Act, the Board shall submit a report 
containing recommendations to the Congress concerning such action.

SEC. 303. INCREASED REGULATORY FLEXIBILITY UNDER THE TRUTH IN LENDING 
              ACT.

    (a) Regulatory Flexibility.--Section 104 of the Truth in Lending 
Act (15 U.S.C. 1603) is amended by adding at the end the following new 
paragraph:
            ``(7) Transactions for which the Board, by regulation, 
        determines that coverage under the Act is not needed to carry 
        out the purposes of the Act.''.
    (b) Exemptive Authority.--Section 105 of the Truth in Lending Act 
(15 U.S.C. 1604) is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Exemptive Authority.--
            ``(1) In general.--The Board shall exempt from all or parts 
        of this title any class of transactions for which, in the 
        Board's judgment, coverage under all or part of this title does 
        not provide a measurable benefit to consumers in the form of 
        useful information or protection.
            ``(2) Factors to be considered.--In determining which 
        classes of transactions to exempt in whole or in part, the 
        Board shall consider, among other factors, the following:
                    ``(A) The amount of the loan or closing costs and 
                whether the disclosures, right of rescission, and other 
                provisions are necessary, particularly for small loans.
                    ``(B) Whether the requirements of this title 
                complicate, hinder, or make more expensive the credit 
                process for the class of transactions.
                    ``(C) The status of the borrower, including, the 
                borrowers' related financial arrangements, the 
                financial sophistication of the borrower relative to 
                the type of transaction, and the importance of the 
                credit and related supporting property to the 
                borrower.''.

SEC. 304. REDUCTIONS IN RESPA REGULATORY BURDENS; CLARIFYING 
              AMENDMENTS.

    (a) Unnecessary Disclosure.--Section 6(a) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended to read 
as follows:
    ``(a) Disclosure to Applicant Relating to Assignment, Sale, or 
Transfer of Loan Servicing.--
            ``(1) In general.--Each person who makes a federally 
        related mortgage loan shall disclose to each person who applies 
        for any such loan, at the time of application for the loan, 
        whether the servicing of any such loan may be assigned, sold, 
        or transferred to any other person at any time while such loan 
        is outstanding.
            ``(2) Signature of applicant.--Any disclosure of the 
        information required under paragraph (1) shall not be effective 
        for purposes of this section unless the disclosure is 
        accompanied by a written statement, in such form as the 
        Secretary shall develop before the expiration of the 180-day 
        period beginning on the date of the enactment of the Financial 
        Institutions Regulatory Relief Act of 1996, that the applicant 
        has read and understood the disclosure and that is evidenced by 
        the signature of the applicant at the place where such 
        statement appears in the application.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 180 days after the date of the enactment of this Act.
    (c) Second Mortgages.--Section 3(1)(A) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2602(1)(A)) is amended by 
striking ``or subordinate''.
    (d) Consistency of RESPA and Truth in Lending Act Exemption of 
Business Loans.--Section 7 of the Real Estate Settlement Procedures Act 
of 1974 (12 U.S.C. 2606) is amended--
            (1) by inserting ``(a) In General.--'' before ``This Act''; 
        and
            (2) by inserting at the end the following new subsection:
    ``(b) Interpretation.--In issuing regulations pursuant to section 
19(a) of this Act, the Board shall ensure that, with regard to 
subsection (a), the exemption for business credit includes all business 
credit which is exempt from the Truth in Lending Act in accordance with 
section 226.3(a) of the regulations prescribed by the Board known as 
`regulation Z' (12 C.F.R. 226.3(a)), as in effect on the date of 
enactment of the Financial Institutions Regulatory Relief Act of 
1996.''.

SEC. 305. DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

    (a) In General.--Section 127A(a)(2)(G) of the Truth in Lending Act 
(15 U.S.C. 1637a(a)(2)(G)) is amended by inserting before the semicolon 
``, or a statement that the monthly payment may increase or decrease 
significantly due to increases in the annual percentage rate''.
    (b) Technical and Conforming Amendment.--Section 127A(b)(3) of the 
Truth in Lending Act (15 U.S.C. 1637a(b)(3)) is amended by striking 
``required under'' and inserting ``referred to in''.
    (c) Alternative to Historical Example.--Section 128(a) of the Truth 
in Lending Act (15 U.S.C. 1638(a)) is amended by inserting at the end 
the following new paragraph:
            ``(14) In any variable rate transaction secured by the 
        consumer's principal dwelling with a term greater than 1 year, 
        at the creditors' option, a statement that the monthly payment 
        may increase or decrease substantially, or a historical example 
        illustrating the effects of interest rate changes implemented 
        according to the loan program.''.
    (d) Ensuring Honoring of Lock-in Promises.--Section 128(b) of the 
Truth in Lending Act (15 U.S.C. 1638(b)) is amended by adding at the 
end the following new paragraph:
    ``(3) In the case of a residential mortgage transaction, the 
disclosures under subsection (a) shall include the following:
            ``(A) The note rate and points, and a statement, if 
        applicable, that these terms are subject to change.
            ``(B) A statement that the creditor must include the 
        disclosed note rate and points in the credit agreement unless, 
        in relation to either or both of those terms--
                    ``(i) the disclosure clearly and conspicuously 
                indicates that the term is subject to change, or
                    ``(ii) in the case of any term to which clause (i) 
                does not apply--
                            ``(I) the creditor has clearly and 
                        conspicuously indicated that the term is 
                        conditioned on closing the transaction within a 
                        prescribed time;
                            ``(II) the creditor has promptly and 
                        clearly communicated to the consumer the 
                        information and documentation that the consumer 
                        is required to provide to the creditor; and
                            ``(III) the consumer has failed to provide 
                        such information and documentation within a 
                        reasonable time after receiving that 
                        communication.''.

SEC. 306. CERTAIN CHARGES.

    Section 106(c) of the Truth in Lending Act (15 U.S.C. 1605(c)) is 
amended to read as follows:
    ``(c) Treatment of Certain Debt Cancellation and Deficiency Waiver 
Contracts.--Charges or premiums for any insurance or for any voluntary 
noninsurance product, written in connection with any consumer credit 
transaction, that provides protections against loss of or damage to 
property or against part or all of the debtor's liability for amounts 
in excess of the value of the collateral securing the debtor's 
obligation, or against liability arising out of the ownership or use of 
property, shall be included in the finance charge unless a clear and 
specific statement in writing is furnished by the creditor to the 
person to whom the credit is extended, setting forth the cost of the 
insurance or product if obtained from or through the creditor, and 
stating that the person to whom credit is extended may choose the 
person through which the insurance or product is to be obtained.''.

SEC. 307. EXEMPTIONS FROM RESCISSION.

    (a) Certain Refinancing.--Section 125(e) of the Truth in Lending 
Act (15 U.S.C. 1635(e)) is amended--
            (1) by striking ``or'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(5) a transaction, other than a mortgage referred to in 
        section 103(aa), which--
                    ``(A) is a refinancing of the principal balance 
                then due and any accrued and unpaid finance charges of 
                a residential mortgage transaction as defined in 
                section 103(w), or is any subsequent refinancing of 
                such a transaction; and
                    ``(B) does not provide any new consolidation or new 
                advance.''.
    (b) Technical and Conforming Amendment.--Section 125(e)(2) of the 
Truth in Lending Act (15 U.S.C. 1635(e)(2)) is amended by inserting ``, 
other than a transaction described in subsection (e)(5),'' after ``a 
refinancing or consolidation (with no new advances)''.

SEC. 308. RECOVERY OF FEES.

    Section 125(b) of the Truth in Lending Act (15 U.S.C. 1635) is 
amended--
            (1) in the 1st sentence, by inserting ``, except any charge 
        for an appraisal report or credit report'' after ``other 
        charge''; and
            (2) in the 2d sentence, by striking ``otherwise'' and 
        inserting ``as otherwise required under this subsection''.

SEC. 309. HOME OWNERSHIP DEBT COUNSELING NOTIFICATION.

    Section 106(c) of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x(c)) is amended by striking paragraph (5).

SEC. 310. HOME MORTGAGE DISCLOSURE ACT.

    (a) Section 309 of the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2808) is amended--
            (1) in the 2d sentence, by striking ``$10,000,000'' and 
        inserting ``$50,000,000''; and
            (2) by inserting at the end the following new sentences: 
        ``The Board may also, by regulation, exempt from the provisions 
        of this Act institutions specified in section 303(2)(A) which 
        have total assets as of their last full fiscal year of 
        $50,000,000 or greater where the burden of complying with this 
        Act on such institutions outweighs the usefulness of the 
        information required to be disclosed. The exemptions provided 
        under this section shall not be applicable to an institution 
        which the Board, by order, has found a reasonable basis to 
        believe is not fulfilling its obligations to serve the housing 
        needs of the communities and neighborhoods in which it located. 
        An institution subject to such an order shall be required to 
        comply with the requirements of this Act for loans made after 
        the time that the order is issued at such time and for such 
        period as the Board deems appropriate. The dollar amount in 
        this section shall be adjusted annually after December 31, 
        1994, by the annual percentage increase in the Consumer Price 
        Index for Urban Wage Earners and Clerical Workers published by 
        the Bureau of Labor Statistics.''.
    (b) Section 304 of the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2803) is amended by adding at the end the following new 
subsection:
    ``(m) Opportunity To Reduce Compliance Burden.--
            ``(1) A depository institution shall be considered to have 
        satisfied the public availability requirements of subsection 
        (a) if such institution keeps the information required under 
        that subsection at its home office and provides notice at the 
        branch locations specified in such subsection that such 
        information is available upon request from the home office of 
        the institution. A home office of the depository institution 
        receiving a request for such information pursuant to this 
        subsection shall provide the information pertinent to the 
        location of the branch in question within fifteen days of the 
        receipt of the written request.
            ``(2) In complying with paragraph (1), a depository 
        institution may provide the individual requesting such 
        information, at the institution's choice, with--
                    ``(A) a paper copy of the information requested; or
                    ``(B) if acceptable to the individual, the 
                information through a form of electronic medium, such 
                as computer disc.''.

           Subtitle B--Community Reinvestment Act Amendments

SEC. 321. EXPRESSION OF CONGRESSIONAL INTENT.

    Subsection (b) of section 802 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2901) is amended to read as follows:
    ``(b) It is the purpose of this title to require each appropriate 
Federal financial supervisory agency to use its authority, when 
examining financial institutions, to encourage such institutions to 
help meet the credit needs of the local communities in which they are 
chartered consistent with the safe and sound operation of such 
institutions. When examining financial institutions, a supervisory 
agency shall not impose additional burden, recordkeeping, or reporting 
upon such institutions.''.

SEC. 322. COMMUNITY REINVESTMENT ACT EXEMPTION.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended by adding at the end the following new section:

``SEC. 809. EXAMINATION EXEMPTION.

    ``(a) In General.--A regulated financial institution shall not be 
subject to the examination requirements of this title or any 
regulations issued under this section if
            ``(1) the main office (and each branch of such institution) 
        is located in a town, political subdivision, or other unit of 
        general local government no part of which falls within any 
        metropolitan statistical area; and
            ``(2) the aggregate assets of such institution and any 
        depository institution holding company which controls such 
        institution is not greater than $100,000,000.
    ``(b) Annual Adjustment.--The dollar amount in subsection (a)(2) 
shall be adjusted annually after December 31, 1994, by the annual 
percentage increase in the Consumer Price Index for Urban Wage Earners 
and Clerical Workers published by the Bureau of Labor Statistics.''.

SEC. 323. COMMUNITY INPUT AND CONCLUSIVE RATING.

    (a) Conforming Amendment.--Section 804(a) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by inserting 
``conducted in accordance with section 806A,'' after ``financial 
institution,''.
    (b) Community Input and Conclusive Rating.--The Community 
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended by 
inserting after section 806 the following new section:

``SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.

    ``(a) Publication of Exam Schedule and Opportunity for Comment.--
            ``(1) Publication of notice.--Each appropriate Federal 
        financial supervisory agency shall--
                    ``(A) publish in the Federal Register, 30 days 
                before the beginning of a calendar quarter, a listing 
                of institutions scheduled for evaluation for compliance 
                with this title during such calendar quarter; and
                    ``(B) provide opportunity for written comments from 
                the community on the performance, under this title, of 
                each institution scheduled for evaluation.
            ``(2) Comment period.--Written comments may not be 
        submitted to an appropriate Federal financial supervisory 
        agency pursuant to paragraph (1) after the end of the 30-day 
        period beginning on the first day of the calendar quarter.
            ``(3) Copy of comments.--The agency shall provide a copy of 
        such comments to the institution.
    ``(b) Evaluation.--The appropriate Federal financial supervisory 
agency shall--
            ``(1) evaluate the institution in accordance with the 
        standards contained in section 804; and
            ``(2) prepare and publish a written evaluation of the 
        institution as required under section 807.
    ``(c) Reconsideration of Rating.--
            ``(1) Request for reconsideration.--A reconsideration of an 
        institution's rating referred to in section 807(b)(1)(C), may 
        be requested within 30 days of the rating's disclosure to the 
        public.
            ``(2) Procedures for request.--Any such request shall be 
        made in writing and filed with the appropriate Federal 
        financial supervisory agency, and may be filed by the 
        institution or a member of the community.
            ``(3) Basis for request.--Any request for reconsideration 
        under this subsection shall be based on significant issues of a 
        substantive nature which are relevant to the delineated 
        community of the institution and, in the case of a request by a 
        member of the community, shall be limited to issues previously 
        raised in comments submitted pursuant to subsection (a).
            ``(4) Completion of review.--The appropriate Federal 
        financial supervisory agency shall complete any requested 
        reconsideration within 30 days of the filing of the request.
    ``(d) Conclusive Rating.--
            ``(1) In general.--An institution's rating shall become 
        conclusive on the later of--
                    ``(A) 30 days after the rating is disclosed to the 
                public; or
                    ``(B) the completion of any requested 
                reconsideration by the Federal financial supervisory 
                agency.
            ``(2) Rating conclusive of meeting community credit 
        needs.--An institution's rating shall be the conclusive 
        assessment of the institution's record of meeting the credit 
        needs of its community for purposes of section 804 until the 
        institution's next rating, developed pursuant to an 
        examination, becomes conclusive.
            ``(3) Safe harbor.--Institutions which have received a 
        `satisfactory' or `outstanding' rating shall be deemed to have 
        met the purposes of section 804.
            ``(4) Rule of construction.--Notwithstanding any other 
        provision of law, no provision of this section shall be 
        construed as granting a cause of action to any person.''.
    (c) Overall Evaluation of Institution.--Paragraph (2) of section 
804(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(a)) is 
amended to read as follows:
            ``(2) take such record into account in the overall 
        evaluation of the condition of the institution by the 
        appropriate Federal financial supervisory agency.''.

SEC. 324. SPECIAL PURPOSE FINANCIAL INSTITUTIONS.

    (a) In General.--Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903) is amended by adding at the end the following new 
subsection:
    ``(c) Special Purpose Institutions.--
            ``(1) In general.--In conducting assessments pursuant to 
        this section at any special purpose institution, the 
        appropriate Federal financial supervisory agency shall--
                    ``(A) consider the nature of business such 
                institution is involved in; and
                    ``(B) assess and take into account the record of 
                the institution commensurate with the amount of 
                deposits (as defined in section 3(1) of the Federal 
                Deposit Insurance Act) received by such institution.
            ``(2) Standards.--Each appropriate Federal financial 
        supervisory agency shall develop standards under which special 
        purpose institutions may be deemed to have complied with the 
        requirements of this title which are consistent with the 
        specific nature of such businesses.''.
    (b) Special Purpose Institution Defined.--Section 803 of the 
Community Reinvestment Act of 1977 (12 U.S.C. 2902) is amended by 
adding at the end the following new paragraph:
            ``(5) Special purpose institutions.--The term `special 
        purpose institution' means a financial institution that does 
        not generally accept deposits from the public in amounts of 
        less than $100,000, such as wholesale, credit card, and trust 
        institutions.''.

SEC. 325. INCREASED INCENTIVES FOR LENDING TO LOW- AND MODERATE-INCOME 
              COMMUNITIES.

    (a) In General.--Section 804(b) of the Community Reinvestment Act 
of 1977 (12 U.S.C. 2903(b)) is amended to read as follows:
    ``(b) Positive Consideration of Certain Loans and Investments.--In 
assessing and taking into account the records of a regulated financial 
institution under subsection (a), the appropriate Federal financial 
supervisory agency shall--
            ``(1) consider as a positive factor, consistent with the 
        safe and sound operation of the institution, the institution's 
        investment in or loan to--
                    ``(A) any minority depository institution or 
                women's depository institution (as such terms are 
                defined in section 808(b)) or any low-income credit 
                union;
                    ``(B) any joint venture or other entity or project 
                which promotes the public welfare in any distressed 
                community (as defined by such agency) whether or not 
                the distressed community is located in the local 
                community in which the regulated financial institution 
                is chartered to do business; and
                    ``(C) targeted low- and moderate-income 
                communities, including real property loans to such 
                communities; and
            ``(2) consider equally with other factors capital 
        investment, loan participation, and other ventures undertaken 
        by the institution in cooperation with--
                    ``(A) minority- and women-owned financial 
                institutions and low-income credit unions to the extent 
                that these activities help meet the credit needs of the 
                local communities in which such institutions are 
                chartered; and
                    ``(B) community development corporations in 
                extending credit and other financial services 
                principally to low- and moderate-income persons and 
                small businesses to the extent that such community 
                development corporations help meet the credit needs of 
                the local communities served by the majority-owned 
                institution.''.
    (b) Amendment to Definitions.--Section 803 of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2902) is amended by inserting after 
paragraph (5) (as added by section 324(b) of this subtitle) the 
following new paragraph:
            ``(6) State bank supervisor.--The term `State bank 
        supervisor' has the same meaning as in section 3(r) of the 
        Federal Deposit Insurance Act.''.
    (c) Technical Correction.--The 1st of the 2 paragraphs designated 
as paragraph (2) of section 803 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2902) is amended to read as follows:
                    ``(D) the Director of the Office of Thrift 
                Supervision with respect to any savings association 
                (the deposits of which are insured by the Federal 
                Deposit Insurance Corporation) and any savings and loan 
                holding company (other than a company which is a bank 
                holding company);''.

SEC. 326. PROHIBITION ON ADDITIONAL REPORTING UNDER CRA.

    Section 806 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2905) is amended to read as follows:

``SEC. 806. REGULATIONS.

    ``(a) In General.--
            ``(1) Publication requirement.--Regulations to carry out 
        the purposes of this title shall be published by each 
        appropriate Federal financial supervisory agency.
            ``(2) Prohibition on additional recordkeeping.--Regulations 
        prescribed and policy statements, commentary, examiner 
        guidance, or other supervisory material issued under this title 
        shall not impose any additional recordkeeping on a financial 
        institution.
            ``(3) Prohibition on loan data collection.--No loan data 
        may be required to be collected and reported by a financial 
        institution and no such data may be made public by any Federal 
        financial supervisory agency under this title.''.

SEC. 327. TECHNICAL AMENDMENT.

    Section 807(b)(1)(B) of the Community Reinvestment Act (12 U.S.C. 
2906) is amended by striking ``The information'' and inserting ``In the 
case of a regulated financial institution that maintains domestic 
branches in 2 or more States, the information''.

SEC. 328. DUPLICATIVE REPORTING.

    Section 10(g) of the Federal Home Loan Bank Act (12 U.S.C. 1430(g)) 
is amended by adding at the end the following new paragraph (3):
            ``(3) Special rule.--This subsection shall not apply to 
        members receiving a grade of `outstanding' or `satisfactory' 
        under section 807 of the Community Reinvestment Act of 1977.''.

SEC. 329. CRA CONGRESSIONAL OVERSIGHT.

    (a) Sense of Congress Relating to Aggressive Oversight.--It is the 
sense of the Congress that the appropriate committees of the House of 
Representatives and the Senate should exercise aggressive oversight of 
the adoption and implementation of any regulation by any appropriate 
Federal financial supervisory agency under the Community Reinvestment 
Act of 1977 after the date of the enactment of this Act.
    (b) Agency Reports Required.--
            (1) In general.--Each appropriate Federal financial 
        supervisory agency shall submit a report to the Congress by 
        December 31, 1996, and by December 31, 1997, on the 
        implementation of all regulations prescribed by such agency 
        under the Community Reinvestment Act of 1977 after the date of 
        the enactment of this Act.
            (2) Requirements relating to preparation of reports.--In 
        preparing each report required under paragraph (1), each 
        appropriate Federal financial supervisory agency shall--
                    (A) solicit and include comments from regulated 
                financial institutions with respect to the regulations 
                which are the subject of the report; and
                    (B) include quantifiable measures of the cost 
                savings achieved under the regulations which are the 
                subject of the report and the effectiveness of such 
                regulations in achieving the purposes of the Community 
                Reinvestment Act of 1977.
            (3) Definitions.--For purposes of this section, the terms 
        ``appropriate Federal financial supervisory agency'' and 
        ``regulated financial institution'' have the same meanings as 
        in section 803 of the Community Reinvestment Act of 1977.

SEC. 330. CONSULTATION AMONG EXAMINERS.

    Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is 
amended by adding at the end the following new subsection:
    ``(j) Consultation Among Examiners.--
            ``(1) In general.--Each appropriate Federal banking agency 
        shall take such action as may be necessary to ensure that 
        examiners employed by the agency--
                    ``(A) consult on examination activities with 
                respect to any depository institution; and
                    ``(B) achieve an agreement and resolve any 
                inconsistencies on the recommendations to be given to 
                such institution as a consequence of any examinations.
            ``(2) Examiner-in-charge.--Each agency shall consider 
        appointing an examiner-in-charge with respect to a depository 
        institution to ensure consultation on examination activities 
        among all of the agency's examiners involved in examinations of 
        such institution.''.

SEC. 331. LIMITATION ON REGULATIONS.

    Section 806 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2905) (as amended by section 326 of this subtitle) is amended by adding 
at the end the following new subsections:
    ``(b) Limitation on Regulations.--No regulation may be prescribed 
under this title by any Federal agency which would--
            ``(1) require any regulated financial institution to--
                    ``(A) make any loan or enter into any other 
                agreement on the basis of any discriminatory criteria 
                prohibited under any law of the United States; or
                    ``(B) make any loan to, or enter into any other 
                agreement with, any uncreditworthy person that would 
                jeopardize the safety and soundness of such 
                institution; or
            ``(2) prevent or hinder in any way a financial 
        institution's full responsibility to provide credit to all 
        segments of the community.
    ``(c) Encourage Loans to Creditworthy Borrowers.--Regulations 
prescribed under this title shall encourage regulated financial 
institutions to make loans and extend credit to all creditworthy 
persons, consistent with safety and soundness.''.

                  Subtitle C--Consumer Banking Reforms

SEC. 341. TRUTH IN SAVINGS.

    (a) Purpose.--Section 262 of the Truth in Savings Act (12 U.S.C. 
4301) is amended to read as follows:

``SEC. 262. PURPOSE.

    ``It is the purpose of this subtitle to ensure that consumers can 
make a meaningful comparison between the competing claims of depository 
institutions with regard to deposit accounts by requiring that 
institutions offering interest-bearing accounts pay interest on the 
full amount of principal each day in a consumer deposit account at the 
rate agreed to be paid by the institution.''.
    (b) Prohibition on Misleading or Inaccurate Advertisements and 
Disclosures.--Section 263 is amended to read as follows:

``SEC. 263. PROHIBITION ON MISLEADING OR INACCURATE ADVERTISEMENTS AND 
              DISCLOSURES.

    ``No depository institution or deposit broker shall make any 
advertisement, announcement, solicitation or disclosure relating to a 
deposit account that is inaccurate or misleading, including any 
inaccurate or misleading description of a free or no-cost account, or 
that misrepresents its deposit contracts.''.
    (c) Account Information Upon Opening an Account.--Section 264 of 
the Truth in Savings Act (12 U.S.C. 4304) is amended to read as 
follows:

``SEC. 264. ACCOUNT INFORMATION.

    ``(a) In General.--Each depository institution shall disclose fees, 
charges, penalties, and interest rates applicable to each class of 
accounts offered by the institution in accordance with this section.
    ``(b) Information on Fees and Charges.--Each depository institution 
shall disclose the following information with respect to any account to 
a consumer at the time the account is opened, or at such earlier time 
as a consumer may request (and no additional information may be 
required to be disclosed under this subtitle by regulation or otherwise 
with respect to such account):
            ``(1) A description of all fees, periodic service charges, 
        penalties, and interest rates which may be charged or assessed 
        against the account (or against the account holder in 
        connection with such account), the amount of any such fees, 
        charges, or penalties (or the method by which such amount will 
        be calculated), and the conditions under which any such amount 
        will be assessed.
            ``(2) All minimum balance requirements that affect fees, 
        charges, and penalties, including a clear description of how 
        each such minimum balance is calculated.
            ``(3) Any minimum amount required with respect to the 
        initial deposit in order to open the account.
    ``(c) Information on Interest Rates.--The disclosures required 
under subsections (a) and (b) with respect to any account shall include 
the following information:
            ``(1) Any annual rate of simple interest.
            ``(2) The frequency with which interest will be compounded 
        and credited.
    ``(d) No Regulations Authorized.--No regulations may be prescribed 
with respect to this section by the Board or any agency referred to in 
this title, including any regulation to define any terms used in this 
section.''.
    (d) Disclosure of Change in Terms.--Section 265 of the Truth in 
Savings Act (12 U.S.C. 4304) is amended to read as follows:

``SEC. 265. DISCLOSURE OF CHANGE IN TERMS.

    ``If any change is made in any item required to be disclosed under 
section 264, all account holders who may be affected by such change 
shall be notified by mail and provided with a description of such 
change at least 30 days before the effective date of the change.''.
    (e) Repeal of Sections.--Sections 266, 268, 271, and 273 of the 
Truth in Savings Act (12 U.S.C. 4304, 4305, 4307, 4310, and 4312, 
respectively) are hereby repealed.
    (f) Redesignation of Sections.--Section 267, 270, 272 of the Truth 
in Savings Act (12 U.S.C. 4306, 4309, and 4311) are redesignated as 
sections 266, 268, and 269, respectively.
    (g) Redesignation and Amendment of Section 269.--Section 269 of the 
Truth in Savings Act (12 U.S.C. 4308) (as determined before the 
redesignation made by subsection (f) of this section) is amended to 
read as follows:

``SEC. 267. REGULATIONS.

    ``(a) In General.--The Board, after consultation with each agency 
referred to in section 268(a) and public notice and opportunity for 
comment, shall prescribe regulations to carry out the purpose and 
provisions of this subtitle.
    ``(b) Effective Date of Regulations.--The provisions of this 
subtitle shall not apply with respect to any depository institution 
before the effective date of regulations prescribed by the Board under 
this subsection.''.
    (h) Redesignation and Amendment of Section 274.--Section 274 of the 
Truth in Savings Act (12 U.S.C. 4313) is amended to read as follows:

``SEC. 270. DEFINITIONS.

    ``For the purposes of this subtitle, the following definitions 
shall apply:
            ``(1) Accounts.--The term `account' means any account 
        intended for use by and generally used by a consumer primarily 
        for personal, family, or household purposes that is offered by 
        a depository institution.
            ``(2) Deposit broker.--The term `deposit broker'--
                    ``(A) has the meaning given to such term in section 
                29(f)(1) of the Federal Deposit Insurance Act; and
                    ``(B) includes any person who solicits any amount 
                from any other person for deposit in an insured 
                depository institution.
            ``(3) Depository institution.--The term `depository 
        institution'--
                    ``(A) means an institution described in clause (i), 
                (ii), (iii), (iv), (v), or (vi) of section 19(b)(1)(A) 
                of the Federal Reserve Act; and
                    ``(B) does not include nonautomated credit unions 
                which were not required to comply with the requirements 
                of this title as of the date of the enactment of the 
                Financial Institutions Regulatory Relief Act of 1996 
                pursuant to the determination of the National Credit 
                Union Administration Board.
            ``(4) Interest.--The term `interest' includes dividends 
        paid with respect to share accounts which are accounts within 
        the meaning of paragraph (1).
            ``(5) Board.--The term `Board' means the Board of Governors 
        of the Federal Reserve System.''.
    (i) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the effective date of regulations prescribed by 
        the Board of Governors of the Federal Reserve System to 
        implement such amendments.
            (2) Authority to issue regulations.--Notwithstanding 
        paragraph (1), the Board of Governors of the Federal Reserve 
        System shall prescribe regulations in accordance with the 
        amendment made by subsection (g).
            (3) Continued applicability of provisions until effective 
        date of new regulations.--The Truth in Savings Act, as in 
        effect on the day before the date of the enactment of this Act, 
        shall continue to apply on and after such date until the 
        effective date of the amendments to such Act under this 
        section.

SEC. 342. INFORMATION SHARING.

    Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new subsection:
    ``(s) Customer Access to Products.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any depository institution, or any affiliate or subsidiary 
        of any depository institution, may share or exchange 
        information or otherwise transfer information between or among 
        themselves without any restriction or limitation if it is 
        clearly and conspicuously disclosed that the information may be 
        communicated among such persons and the consumer is given the 
        opportunity, before the time that the information is initially 
        communicated, to direct that such information not be 
        communicated among such persons.
            ``(2) Definition.--For purposes of this subsection, the 
        term `information' means any and all data, records, or other 
        information and material obtained or maintained by any 
        depository institution or any affiliate or subsidiary thereof 
        in the ordinary course of its business that relates in any way 
        to a person (as such term is defined in section 603(b) of the 
        Fair Credit Reporting Act) who applies for, maintains, or has 
        maintained an account or credit relationship with or applied 
        for, purchased or obtained other products or services from any 
        depository institution or any affiliate or subsidiary of any 
        depository institution, regardless of the source of manner in 
        which the information is obtained or furnished.
            ``(3) Rule of construction.--Any depository institution, or 
        any affiliate or subsidiary of any depository institution, 
        relying on this subsection shall not be deemed to be a consumer 
        reporting agency, user, or third party, and the information 
        itself shall not constitute a consumer report, within the 
        meaning of the Fair Credit Reporting Act or other similar 
        law.''.

SEC. 343. ELECTRONIC FUND TRANSFER ACT CLARIFICATION.

    (a) Definition of Accepted Card or Other Means of Access.--Section 
903(1) of the Electronic Fund Transfer Act (15 U.S.C. 1693a(1)) is 
amended by inserting before the semicolon at the end the following: ``, 
but such term does not include a card, device, or computer that a 
person may use to pay for transactions through use of value stored on, 
or assigned to, the card, device, or computer itself, except for those 
transactions where such card, device, or computer is actually used to 
access an account to effect such transaction''.
    (b) Definition of Account.--Section 903(2) of the Electronic Fund 
Transfer Act (15 U.S.C. 1693a(2)) is amended by inserting before the 
semicolon at the end the following: ``and does not include any value 
which is stored on, or assigned to, a card, device, or computer itself 
that enables a person to pay for transactions through use of that 
stored value''.

SEC. 344. LIMIT ON RESTITUTION FOR TRUTH IN LENDING VIOLATIONS IF 
              SAFETY AND SOUNDNESS OF VIOLATOR WOULD BE AFFECTED.

    Section 108(e)(3)(A) of the Truth in Lending Act (15 U.S.C. 
1607(e)(3)(A)) is amended--
            (1) by striking ``in any such case, the agency may 
        require'' and inserting ``in any such case, the agency may (i) 
        require'';
            (2) by striking ``, except that with respect to any 
        transaction consummated after the effective date of section 608 
        of the Truth in Lending Simplification and Reform Act, the 
        agency shall'' and inserting ``; or (ii)''; and
            (3) by striking ``reasonable,'' and inserting ``reasonable 
        if, in the case of an agency referred to in paragraph (1), (2), 
        or (3) of subsection (a), the agency determines that a partial 
        adjustment or the making of partial payments over an extended 
        period is necessary to avoid causing the creditor to become 
        undercapitalized (as determined in accordance with regulations 
        prescribed by such agency under section 38 of the Federal 
        Deposit Insurance Act);''.

          Subtitle D--Equal Credit Opportunity Act Amendments

SEC. 351. SHORT TITLE.

    This subtitle may be cited as the ``Equal Credit Opportunity Act 
Amendments of 1995''.

SEC. 352. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that both the Equal Credit 
Opportunity Act (15 U.S.C. 1691, et seq.) and the Fair Credit Reporting 
Act (15 U.S.C. 1681, et seq.) contain requirements that applicants for 
consumer credit be given certain information in the event that adverse 
action is taken on the application. These requirements differ in both 
scope and content and for that reason are confusing to both the 
consumer who receives the information and the party required to furnish 
the information.
    (b) Purpose.--It is the purpose of this subtitle to combine and 
simplify the adverse action notification requirements of the Equal 
Credit Opportunity Act and the Fair Credit Reporting Act regarding 
applications for consumer credit and to make the information that is 
required to be furnished more understandable.

SEC. 353. EQUAL CREDIT OPPORTUNITY ACT AMENDMENTS.

    (a) Notice of Adverse Action.--Section 701(d)(2)(B) of the Equal 
Credit Opportunity Act (15 U.S.C. 1691(d)(2)(B)) is amended to read as 
follows:
                    ``(B) giving written notification of adverse action 
                which discloses--
                            ``(i) the applicant's right to a statement 
                        of reasons within 30 days after receipt by the 
                        creditor of a request made within 60 days after 
                        such notification;
                            ``(ii) if credit is denied or the charge 
                        for such credit is increased either wholly or 
                        partly because of information contained in a 
                        consumer report from a consumer reporting 
                        agency--
                                    ``(I) that fact and the name, 
                                address, and telephone number of the 
                                consumer reporting agency making the 
                                report;
                                    ``(II) the consumer's right to 
                                obtain, under section 612, a free copy 
                                of a consumer report on the consumer, 
                                from the consumer reporting agency 
                                referred to in subclause (I) within the 
                                30-day period provided under such 
                                section; and
                                    ``(III) the consumer's right to 
                                dispute, under section 611, with a 
                                consumer reporting agency the accuracy 
                                or completeness of any information in a 
                                consumer report furnished by the 
                                agency.
                            ``(iii) if credit is denied or the charge 
                        for credit is increased either wholly or partly 
                        because of information obtained from a person 
other than a consumer reporting agency bearing upon the consumer's 
credit worthiness, credit standing, credit capacity, character, general 
reputation, personal characteristics or mode of living, that fact and 
the right to receive disclosure of the nature of the information so 
received, within a reasonable period of time, upon the consumer's 
written request for information within 60 days after learning of such 
adverse action; and
                            ``(iv) the identity of the person or office 
                        from which such notification may be obtained.
                Such statement of reasons may be given orally if the 
                written notification advises the applicant of his right 
                to have the statement of reasons confirmed in writing 
                on written request.''.
    (b) Technical and Conforming Amendment.--Section 701(d)(3) of the 
Equal Credit Opportunity Act (15 U.S.C. 1691(d)(3)) is amended by 
striking the period at the end and adding the following: ``and, to the 
extent applicable, the name, address, and telephone number of the 
consumer reporting agency identified in accordance with the 
requirements of subsection (d)(3)(ii) and a statement of the right to 
obtain disclosure of the nature of the information upon which adverse 
action was taken as required by such subsection.''.
    (c) Reasonable Procedures To Assure Compliance.--Section 706 of the 
Equal Credit Opportunity Act (15 U.S.C. 1691e) is amended by adding at 
the end the following new subsection:
    ``(l) Reasonable Procedures To Assure Compliance.--No person shall 
be held liable for any violation of subsection 701(d) if such person 
shows by a preponderance of the evidence that at the time of the 
alleged violation the person maintained reasonable procedures to assure 
compliance with the provisions of the subsection.''.

SEC. 354. FAIR CREDIT REPORTING ACT AMENDMENTS.

    (a) Section 615(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681m(a)) is amended by striking ``credit or'' each place such term 
appears.
    (b) Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) 
is amended by striking subsection (b) and redesignating subsection (c) 
as subsection (b).
    (c) Section 615(b) (as redesignated by this section) of the Fair 
Credit Reporting Act (15 U.S.C. 1681m(b)) is amended by striking 
``subsections (a) and (b)'' and inserting ``subsection (a)''.

SEC. 355. INCENTIVES FOR SELF-TESTING.

    (a) Equal Credit Opportunity.--
            (1) In general.--The Equal Credit Opportunity Act (15 
        U.S.C. 1691 et seq.) is amended by inserting after section 704 
        the following new section:

``SEC. 704A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

    ``(a) In General.--If a creditor--
            ``(1) conducts, or authorizes an independent third party to 
        conduct, a self-test of the creditor's lending or any part of 
        the creditor's lending operations in order to determine the 
        level or effectiveness of compliance with this title by the 
        creditor; and
            ``(2) has identified discriminatory practices and has taken 
        or is taking appropriate corrective actions to address the 
        discrimination,
any report or results of such a self-test may not be obtained or used 
by any applicant, department, or agency in any proceeding or civil 
action brought under this title.
    ``(b) Results of Self-Testing.--No provision of this section shall 
be construed as preventing an applicant, department, or agency from 
obtaining and using the results of any self-testing in any proceeding 
or civil action brought under this title if--
            ``(1) the creditor or any other entity conducted such 
        activity at the request of a department or agency;
            ``(2) the creditor or any other entity, or any person 
        acting on behalf of the creditor or other entity--
                    ``(A) voluntarily releases or discloses all, or any 
                part of, such results; or
                    ``(B) refers to or describes such results as a 
                defense to charges of unlawful discrimination against 
                such creditor, person, or entity; or
            ``(3) the results are sought by the applicant, department, 
        or agency by means of a discovery request for the purposes of 
        determining an appropriate penalty or remedy for a violation of 
        this title.
    ``(c) Regulations.--The appropriate Federal department or agency 
shall prescribe regulations, after notice and opportunity for comment, 
which determine what types of `self-tests' are sufficiently extensive 
so as to constitute a determination of the level or effectiveness of a 
creditor's compliance with this title.''.
            (2) Referrals to the attorney general.--Section 706(g) of 
        the Equal Credit Opportunity Act (15 U.S.C. 1691e(g)) is 
        amended--
                    (A) by striking ``(g) The agencies'' and inserting 
                ``(g) Referrals to the Attorney General.--
            ``(1) In general.--The agencies''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(2) Limitation on referrals of self-testing results.--
                    ``(A) In general.--No agency shall be required to 
                refer any report or results of a self-test relating to 
                any creditor to the Attorney General if the creditor--
                            ``(i) has already identified discriminatory 
                        practices as the result of self-testing 
                        instituted by the creditor to determine 
                        compliance with this title; and
                            ``(ii) has taken or is taking appropriate 
                        corrective actions to address the 
                        discrimination.
            ``(3) Enforcement under other laws.--No provision of this 
        section shall be construed as limiting the authority of the 
        agency to enforce the provisions of this title under any other 
        provision of law.''.
            (3) Referrals to hud.--Section 706(k) of the Equal Credit 
        Opportunity Act (15 U.S.C. 1691e(k)) is amended by adding at 
        the end the following: ``No such agency shall be required to 
        notify the Secretary of Housing and Urban Development or the 
        applicant that the agency has reason to believe that a 
        violation of this title or the Fair Housing Act occurred if the 
        reason is based on a result of self-testing instituted by the 
        creditor to determine compliance with this title, and the 
        creditor has already identified the possible violation and has 
        taken or is taking appropriate corrective actions to address 
        the possible violation. No provisions of this section shall be 
        construed as limiting the authority of the agency to enforce 
        the provisions of this title under any other provision of 
        law.''.
            (4) Clerical amendment.--The table of sections for title 
        VII of the Consumer Credit Protection Act is amended by 
        inserting after the item relating to section 704 the following 
        new item:

``704A. Incentives for self-testing and self-correction.''.
    (b) Fair Housing.--The Fair Housing Act (42 U.S.C. 3601 et seq.) is 
amended by inserting after section 814 the following new section:

``SEC. 814A. SELF-TESTING ENHANCEMENT.

    ``(a) In General.--If any person--
            ``(1) conducts, or authorizes an independent third party to 
        conduct, a self-test of that person's residential real estate 
        related lending activities, or any part of such activities, in 
        order to determine the level or effectiveness of compliance 
        with this title by the person; and
            ``(2) has identified discriminatory practices and has taken 
        or is taking appropriate corrective actions to address the 
        discrimination,
any report or results of such a self-test may not be obtained or used 
by any aggrieved person, complainant, department, or agency in any 
proceeding or civil action brought under this title.
    ``(b) Results of Self-Testing.--No provision of this section shall 
be construed as preventing an aggrieved person, complainant, 
department, or agency from obtaining and using the results of any self-
testing as described in subsection (a) in any proceeding or civil 
action brought under this title if--
            ``(1) the creditor or any other entity conducted such 
        activity at the request of a department or agency;
            ``(2) the creditor or any other entity, or any person 
        acting on behalf of the creditor or other entity--
                    ``(A) voluntarily releases or discloses all, or any 
                part of, such results; or
                    ``(B) refers to or describes such results as a 
                defense to charges of unlawful discrimination against 
                such creditor, person, or entity; or
            ``(3) the results are sought by the aggrieved person, 
        complainant, department, or agency by means of a discovery 
        request for the purposes of determining an appropriate penalty 
        or remedy for a violation of this title.
    ``(c) Regulations.--The appropriate Federal department or agency 
shall prescribe regulations, after notice and opportunity for comment, 
which determine what types of `self-tests' are sufficiently extensive 
so as to constitute a determination of the level or effectiveness of a 
creditor's compliance with this title.''.

SEC. 356. CREDIT SCORING SYSTEMS.

    Section 701 of the Equal Credit Opportunity Act (15 U.S.C. 1691) is 
amended by adding at the end the following new subsection:
    ``(f) Credit Scoring System.--
            ``(1) In general.--A creditor shall be deemed to be in 
        compliance with subsection (a) with respect to any credit 
        decision made by the creditor which is based solely on the use 
        of an empirically derived, demonstrably and statistically 
        sound, credit scoring system (as defined by the Board in 
        regulations prescribed under this title) if such system--
                    ``(A) does not utilize any category protected under 
                subsection (a);
                    ``(B) does not use as a factor in such system any 
                criterion which is so directly associated with such a 
                category as to be the functional equivalent of such a 
                category; and
                    ``(C) does not use as a factor in such system any 
                criterion that has a disparate impact on a category 
                protected under subsection (a) unless use of the 
                criterion is justified by business necessity and there 
                is no less discriminatory alternative available.
            ``(2) Age as a factor.--No provision of this subsection 
        shall be construed as precluding a creditor from using age as a 
        factor in a credit scoring system under paragraph (1) to the 
        extent otherwise permitted under this title.''.

SEC. 357. CONSULTATION BY ATTORNEY GENERAL REQUIRED IN NONREFERRAL 
              CASES.

    (a) Equal Credit Opportunity.--Section 706(h) of the Equal Credit 
Opportunity Act (15 U.S.C. 1691e(h)) is amended by adding at the end 
the following new sentence: ``Before bringing a civil action against 
any creditor described in paragraph (1), (2), or (3) of section 704(a), 
the Attorney General shall consult with the appropriate agency under 
such paragraph.''.
    (b) Fair Housing Act.--Section 814(a) of the Fair Housing Act (42 
U.S.C. 3614(a)) is amended by adding at the end the following new 
sentence: ``Before bringing a civil action under the preceding sentence 
against any person or group of persons described in paragraph (1), (2), 
or (3) of section 704(a) of the Equal Credit Opportunity Act with 
respect to a violation of 805(a) of this title, the Attorney General 
shall consult with the appropriate agency under such paragraph.''.

SEC. 358. EFFECTIVE DATE.

    (a) In General.--Except with respect to the requirements of 
subsection (b), this Act shall take effect at the end of the 270-day 
period beginning on the date of the enactment of this Act.
    (b) Implementing Regulations.--The Board of Governors of the 
Federal Reserve System shall prescribe regulations to implement this 
Act and such regulations shall be published in final form before the 
end of the 180-day period beginning on the date of the enactment of 
this Act.

              Subtitle E--Consumer Leasing Act Amendments

SEC. 361. SHORT TITLE.

    This subtitle may be cited as the ``Consumer Leasing Act Amendments 
of 1995''.

SEC. 362. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) Competition among the various financial institutions 
        and other firms engaged in the business of consumer leasing is 
        greatest when there is informed use of leasing. The informed 
        use of leasing results from an awareness of the cost of leasing 
        by consumers.
            (2) There has been a continued trend toward leasing 
        automobiles and other durable goods for consumer use as an 
        alternative to installment credit sales and that leasing 
        product advances have occurred such that lessors have been 
        unable to provide consistent industry-wide disclosures to fully 
        account for the competitive progress that has occurred.
    (b) Purposes.--
            (1) It is the purpose of this subtitle to assure a simple, 
        meaningful disclosure of leasing terms so that the consumer 
        will be able to compare more readily the various leasing terms 
        available to the consumer and avoid the uninformed use of 
        leasing, and to protect the consumer against inaccurate and 
        unfair leasing practices.
            (2) To provide for adequate cost disclosures that reflect 
        the marketplace without impairing competition and the 
        development of new leasing products, it is the purpose of this 
        subtitle to provide the Board with the regulatory authority to 
        assure a simplified, meaningful definition and disclosure of 
        the terms of certain leases of personal property for personal, 
        family, or household purposes so as to enable the lessee to 
        compare more readily the various lease terms available to the 
        lessee, enable comparison of lease terms with credit terms 
        where appropriate and to assure meaningful and accurate 
        disclosures of lease terms in advertisements.

SEC. 363. REGULATIONS.

    (a) In General.--Chapter 5 of title I of the Consumer Credit 
Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end 
the following new section:

``SEC. 187. REGULATIONS.

    ``(a) Regulations Authorized.--
            ``(1) In general.--The Board shall write regulations or 
        staff commentary, if appropriate, to update and clarify the 
        requirements and definitions for lease disclosures, contracts, 
        and any other specific issues related to consumer leasing which 
        would carry out the purposes of this chapter, to prevent any 
        circumvention of the chapter, and to facilitate compliance with 
        the requirements of the chapter.
            ``(2) Classifications, adjustments.--The regulations 
        prescribed under paragraph (1) may contain classifications and 
        differentiations and may provide for adjustments and exceptions 
        for any class of transaction.
    ``(b) Model Disclosures.--The Board shall publish model disclosure 
forms and clauses to facilitate compliance with the disclosure 
requirements and to aid the consumer in understanding the transaction. 
In designing forms, the Board shall consider the use by lessors of data 
processing or similar automated equipment. Use of the models shall be 
optional. A lessor who properly uses the material aspects of the models 
shall be deemed to be in compliance with the disclosure requirements.
    ``(c) Effective Dates.--
            ``(1) In general.--Any regulation of the Board, or any 
        amendment or interpretation of any regulation of the Board, 
        that requires a disclosure different from the disclosures 
        previously required shall have an effective date of the October 
1 that follows the date of promulgation by at least 6 months.
            ``(2) Longer period.--The Board may, in the Board's 
        discretion, lengthen the period of time referred to in 
        paragraph (1) to permit lessors to adjust their forms to 
        accommodate new requirements.
            ``(3) Shorter period.--The Board may also shorten the 
        period of time referred to in paragraph (1) if the Board makes 
        a specific finding that such action is necessary to comply with 
        the findings of a court or to prevent unfair or deceptive 
        practices.
            ``(4) Compliance before effective date.--Lessors may comply 
        with any newly promulgated disclosure requirement before the 
        effective date of such requirement.''.
    (b) Clerical Amendment.--The table of sections for chapter 5 of 
title I of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) 
is amended by inserting after the item relating to section 186 the 
following new item:

``187. Regulations.''.

SEC. 364. CONSUMER LEASE ADVERTISING.

    Section 184 of the Consumer Credit Protection Act (15 U.S.C. 1667c) 
is amended to read as follows:

``SEC. 184. CONSUMER LEASE ADVERTISING.

    ``(a) In General.--If an advertisement for a consumer lease states 
the amount of any payment or states that any or no initial payment is 
required, the advertisement must also clearly and conspicuously state 
the following terms, as applicable:
            ``(1) That the transaction advertised is a lease.
            ``(2) The total of initial payments required at or before 
        consummation of the lease or delivery of the property, 
        whichever is later.
            ``(3) That a security deposit is required.
            ``(4) The number, amounts, and timing of scheduled 
        payments.
            ``(5) For a lease in which the consumer's liability at the 
        end of the lease term is based on the anticipated residual 
        value of the property, that an extra charge may be imposed at 
        the end of the lease term.
    ``(b) Advertising Medium Not Liable.--Any owner or personnel of any 
medium in which an advertisement appears or through which it is 
disseminated shall not be liable under this section.''.

SEC. 365. STATUTORY PENALTIES.

    Section 185(a) of the Consumer Credit Protection Act (15 U.S.C. 
1667d(a)) is amended by adding at the end the following new sentence: 
``Notwithstanding the preceding sentence, a creditor shall only have 
liability determined under section 130(a)(2) for failing to comply with 
the requirements of paragraph (2), (8), (9), or (10) of section 182 or 
for failing to comply with disclosure requirements under State law for 
any term which the Board has determined to be substantially the same in 
meaning under section 186 as any of the terms referred to in section 
182.''.

             TITLE IV--STREAMLINING GOVERNMENT REGULATIONS

                 Subtitle A--Regulatory Approval Issues

SEC. 401. STREAMLINED NONBANKING ACQUISITIONS BY WELL CAPITALIZED AND 
              WELL MANAGED BANKING ORGANIZATIONS.

    (a) Notice Requirements.--Section 4(j) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(j) is amended--
            (1) in paragraph (1)(A), by striking ``No'' and inserting 
        ``Except as provided in paragraph (3), no''; and
            (2) by adding at the end the following new paragraphs:
            ``(3) No notice required for certain transactions.--No 
        notice under paragraph (1) or subsections (c)(8) or (a)(2)(B) 
        is required for a proposal by a bank holding company to engage 
        in any activity or acquire the shares or assets of any company 
if the proposal qualifies under paragraph (4).
            ``(4) Criteria for statutory approval.--A proposal 
        qualifies under this paragraph if all of the following criteria 
        are met:
                    ``(A) Financial criteria.--Both before and 
                immediately after the proposed transaction--
                            ``(i) the acquiring bank holding company is 
                        well capitalized;
                            ``(ii) the lead insured depository 
                        institution of such holding company is well 
                        capitalized;
                            ``(iii) well capitalized insured depository 
                        institutions control at least 80 percent of the 
                        aggregate total risk-weighted assets of insured 
                        depository institutions controlled by such 
                        holding company; and
                            ``(iv) no insured depository institution 
                        controlled by such holding company is 
                        undercapitalized.
                    ``(B) Managerial criteria.--
                            ``(i) Well managed.--At the time of the 
                        transaction, the acquiring bank holding 
                        company, its lead insured depository 
                        institution, and insured depository 
                        institutions that control at least 90 percent 
                        of the aggregate total risk-weighted assets of 
                        insured depository institutions controlled by 
                        such holding company are well managed.
                            ``(ii) Limitation on poorly managed 
                        institutions.--Except with respect to insured 
                        depository institutions described in paragraph 
                        (6), no insured depository institution 
                        controlled by the acquiring bank holding 
                        company has received 1 of the 2 lowest 
                        composite ratings at the later of the 
                        institution's most recent examination or 
                        subsequent review.
                    ``(C) Activities permissible.--Following 
                consummation of the proposal, the bank holding company 
                engages directly or through a subsidiary solely in--
                            ``(i) activities that are permissible under 
                        subsection (c)(8), as determined by the Board 
                        by regulation or order thereunder, subject to 
                        all of the restrictions, terms and conditions 
                        of such subsection and such regulation or 
                        order; and
                            ``(ii) such other activities as are 
                        otherwise permissible under this section, 
                        subject to the restrictions, terms and 
                        conditions, including any prior notice or 
                        approval requirements, provided in this 
                        section.
                    ``(D) Size of acquisition.--
                            ``(i) Asset size.--The book value of the 
                        total assets to be acquired does not exceed 10 
                        percent of the consolidated total risk-weighted 
                        assets of the acquiring bank holding company; 
                        and
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.
                    ``(E) Notice not otherwise warranted.--For 
                proposals described in paragraph (5)(B), the Board has 
                not, before the conclusion of the period provided in 
                paragraph (5)(B), advised the bank holding company that 
                a notice under paragraph (1) is required.
                    ``(F) Compliance criterion.--During the 12-month 
                period ending on the date on which the bank holding 
                company proposes to commence an activity or 
                acquisition, no administrative enforcement action has 
                been commenced, and no cease and desist order has been 
                issued pursuant to section 8 of the Federal Deposit 
                Insurance Act, against the bank holding company or any 
                depository institution subsidiary of the 
holding company and no such enforcement action, order, or other 
administrative enforcement proceeding is pending as of such date.
            ``(5) Notification.--
                    ``(A) Commencement of activities approved by 
                rule.--A bank holding company that qualifies under 
                paragraph (4) and that proposes to engage de novo, 
                directly or through a subsidiary, in any activity that 
                is permissible under subsection (c)(8), as determined 
                by the Board by regulation, may commence that activity 
                without prior notice to the Board and must provide 
                written notification to the Board no later than ten 
                business days after commencing the activity.
                    ``(B) Activities permitted by order and 
                acquisitions.--
                            ``(i) In general.--At least 12 business 
                        days before commencing any activity pursuant to 
                        paragraph (3) (other than an activity described 
                        in subparagraph (A)) or acquiring shares or 
                        assets of any company pursuant to paragraph 
                        (3), the bank holding company shall provide 
                        written notice of the proposal to the Board, 
                        unless the Board determines that no notice or a 
                        shorter notice period is appropriate.
                            ``(ii) Description of activities and 
                        terms.--A notification under this subparagraph 
                        shall include a description of the proposed 
                        activities and the terms of any proposed 
                        acquisition.
            ``(6) Recently acquired institutions.--Insured depository 
        institutions which have been acquired by a bank holding company 
        during the 12-month period preceding the date on which the 
        company proposes to commence an activity or acquisition 
        pursuant to paragraph (3) may be excluded for purposes of 
        paragraph (4)(B)(ii) if--
                    ``(A) the bank holding company has developed a plan 
                for the institution to restore the capital and 
                management of the institution which is acceptable to 
                the appropriate Federal banking agency; and
                    ``(B) all such insured depository institutions 
                represent, in the aggregate, less than 10 percent of 
                the aggregate total risk-weighted assets of all insured 
                depository institutions controlled by the bank holding 
                company.
            ``(7) Adjustment of percentages.--The Board may, by 
        regulation, adjust the percentages and the manner in which the 
        percentages of insured depository institutions are calculated 
        under paragraph (4)(B)(i), (4)(D), or paragraph (6)(B) if the 
        Board determines that any such adjustment is consistent with 
        safety and soundness and the purposes of this Act.''.
    (b) Definitions.--Section 2(o) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1841(o)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Capital terms.--
                    ``(A) Insured depository institutions.--With 
                respect to insured depository institutions, the terms 
                `well-capitalized', `adequately capitalized', and 
                `uncapitalized' have the meaning given those terms in 
                section 38(b) of the Federal Deposit Insurance Act.
                    ``(B) Bank holding company.--
                            ``(i) Adequately capitalized.--The term 
                        `adequately capitalized' means a level of 
                        capitalization which meets or exceeds all 
                        applicable Federal regulatory capital 
                        standards.
                            ``(ii) Well capitalized.--A bank holding 
                        company is `well capitalized' if it meets the 
                        required capital levels for well capitalized 
                        bank holding companies established by the 
                        Board.
                    ``(C) Other capital terms.--The terms `Tier 1' and 
                `risk-weighted assets' have the meaning given those 
                terms in the capital guidelines or regulations 
                established by the Board for bank holding companies.''; 
                and
            (2) by adding at the end the following new paragraphs:
            ``(8) Lead insured depository institutions.--
                    ``(A) In general.--The term `lead insured 
                depository institution' means the largest insured 
                depository institution controlled by the bank holding 
company at any time, based on a comparison of the average total risk-
weighted assets controlled by each insured depository institution 
during the previous 12-month period.
                    ``(B) Branch or agency.--For purposes of this 
                paragraph and section 4(j)(4), the term `insured 
                depository institution' shall also include any branch 
                or agency operated in the United States by a foreign 
                bank.
            ``(9) Well managed.--The term `well managed' means--
                    ``(A) in the case of any company or depository 
                institution which receives examinations, the 
                achievement of--
                            ``(i) a CAMEL composite rating of 1 or 2 
                        (or an equivalent rating under an equivalent 
                        rating system) in connection with the most 
                        recent examination or subsequent review of such 
                        company or institution; and
                            ``(ii) at least a satisfactory rating for 
                        management, if such rating is given; or
                    ``(B) in the case of a company or depository 
                institution that has not received an examination 
                rating, the existence and use of managerial resources 
                which the Board determines are satisfactory.''.

SEC. 402. STREAMLINED BANK ACQUISITIONS BY WELL CAPITALIZED AND WELL 
              MANAGED BANKING ORGANIZATIONS.

    Section 3 of the Bank Holding Company Act (12 U.S.C. 1842) is 
amended by adding at the end the following new subsection:
    ``(h) No Approval Required for Certain Transactions.--
            ``(1) In general.--Notwithstanding paragraph (3) or (5) of 
        subsection (a) and subject to paragraphs (5) and (6), an 
        acquisition of shares by a registered bank holding company, or 
        a merger or consolidation between registered bank holding 
        companies, shall be deemed approved at the conclusion of the 
        period specified in subparagraph (G) if all of the following 
        conditions have been met:
                    ``(A) Financial and managerial criteria.--
                            ``(i) Well capitalized bank holding 
                        company.--Both at the time of and immediately 
                        after the proposed transaction, the acquiring 
                        bank holding company is well capitalized.
                            ``(ii) Well capitalized lead insured 
                        depository institution.--Both at the time of 
                        and immediately after the proposed transaction, 
                        the lead insured depository institution of the 
                        acquiring bank holding company is well 
                        capitalized.
                            ``(iii) Capital of other insured depository 
                        institutions.--At the time of the transaction, 
                        well capitalized insured depository 
                        institutions control at least 80 percent of the 
                        aggregate total risk-weighted assets of insured 
                        depository institutions controlled by the 
                        acquiring bank holding company.
                            ``(iv) No undercapitalized insured 
                        depository institutions.--At the time of the 
                        transaction, no insured depository institution 
                        controlled by the acquiring bank holding 
                        company is undercapitalized.
                            ``(v) Well managed.--
                                    ``(I) In general.--At the time of 
                                the transaction, the acquiring bank 
                                holding company, its lead insured 
                                depository institution, and insured 
                                depository institutions that control at 
                                least 90 percent of the aggregate total 
                                risk-weighted assets of insured 
                                depository institutions controlled by 
                                such holding company are well managed.
                                    ``(II) No poorly managed 
                                institutions.--Except with respect to 
                                insured depository institutions 
                                described in paragraph (2), no insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                received 1 of the 2 lowest composite 
                                ratings at the later of the 
                                institution's most recent examination 
                                or subsequent review.
                    ``(B) No unsatisfactory cra ratings.--Except with 
                respect to insured depository institutions described in 
                paragraph (3), no insured depository institution 
                controlled by the acquiring bank holding company has 
                received a `needs to improve' or `substantial 
                noncompliance' composite rating as a result of the 
                institution's most recent examination under the 
                Community Reinvestment Act of 1977.
                    ``(C) Competitive criteria.--Consummation of the 
                proposal complies with guidelines established by the 
                Board by regulation, after consultation with the 
                Attorney General, that identify proposals that are not 
                likely to have a significantly adverse effect on 
                competition in any relevant market.
                    ``(D) Size of acquisition.--
                            ``(i) Asset size.--The book value of the 
                        total assets to be acquired does not exceed 10 
                        percent of the consolidated total risk weighted 
                        assets of the acquiring bank holding company.
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.
                    ``(E) Interstate acquisitions.--Board approval of 
                the transaction is not prohibited under subsection (d).
                    ``(F) Compliance criterion.--During the 12-month 
                period ending on the date of the transaction, no 
                administrative enforcement action has been commenced, 
                and no cease and desist order has been issued pursuant 
                to section 8 of the Federal Deposit Insurance Act, 
                against any bank holding company involved in the 
                transaction or any depository institution subsidiary of 
                any such holding company and no such enforcement 
                action, order, or other administrative enforcement 
                proceeding is pending as of such date.
                    ``(G) Other considerations.--Board approval of the 
                transaction is not prohibited under subsection (c)(3).
                    ``(H) Notification.--The acquiring bank holding 
                company provides written notice of the transaction, 
                including a description of the terms of the 
                transaction, to the Board and the Attorney General, 
                simultaneously, at least 15 business days (or such 
                shorter period as permitted by the Board) before the 
                transaction is consummated.
                    ``(I) No board disapproval.--Before the end of the 
                15-day period (or the shorter period) referred to in 
                subparagraph (H), the Board has not required an 
                application under subsection (a).
            ``(2) Special rule relating to the requirement for well 
        managed institutions.--Insured depository institutions which 
        have been acquired by a bank holding company during the 12-
        month period preceding the date of the transaction may be 
        excluded for purposes of paragraph (1)(A)(v)(II) if--
                    ``(A) the bank holding company has developed a plan 
                for the institution to restore the capital and 
                management of the institution which is acceptable to 
                the appropriate Federal banking agency; and
                    ``(B) all such insured depository institutions 
                represent, in the aggregate, less than 10 percent of 
                the aggregate total risk-weighted assets of all insured 
                depository institutions controlled by the holding 
                company.
            ``(3) Special rule relating to the requirement for 
        community investment.--Insured depository institutions acquired 
        during the 12-month period preceding the date of the 
        transaction may be excluded for purposes of paragraph (1)(B) if 
        the bank holding company has developed a plan to restore the 
        performance of the institution to at least a `satisfactory' 
        rating under the Community Reinvestment Act of 1977 which is 
        acceptable to the appropriate Federal banking agency.
            ``(4) Adjustment of percentages.--The Board may by 
        regulation adjust the percentages and the manner in which the 
        percentages of insured depository institutions are calculated 
        under subparagraph (A)(v)(I) or (D) of paragraph (1) or 
        paragraph (2)(B) if the Board determines that such adjustment 
        is consistent with safety and soundness and the purposes of 
        this Act.
            ``(5) Advice of attorney general.--The Attorney General 
        shall advise the Board during the period referred to in 
        paragraph (1)(H) in writing if any competitive concerns exist 
        with respect to the transaction.
            ``(6) Waiver of postapproval waiting period.--If the 
        Attorney General advises the Board that no competitive concerns 
        exist with respect to the transaction, the provisions of 
        section 11(b) relating to a postapproval waiting shall not 
        apply with respect to such transaction.''.

SEC. 403. ELIMINATE FILING AND APPROVAL REQUIREMENTS FOR INSURED 
              DEPOSITORY INSTITUTIONS ALREADY CONTROLLED BY THE SAME 
              HOLDING COMPANY.

    (a) Bank Merger Act.--Section 18(c) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the 
following new paragraph:
            ``(12) The provisions of this subsection shall not apply to 
        any merger, consolidation, acquisition of assets or assumption 
        of liabilities involving only insured depository institutions 
        that are subsidiaries of the same depository institution 
        holding company if--
                    ``(A) the responsible agency would not be 
                prohibited from approving the transaction under section 
                44, if applicable;
                    ``(B) the acquiring, assuming, or resulting 
                institution complies with all applicable provisions of 
                section 44, if any, as if the merger, consolidation, or 
                acquisition were approved under this subsection;
                    ``(C) the acquiring, assuming, or resulting 
                institution provides written notification of the 
                transaction to the appropriate Federal banking agency 
                for the institution at least 10 days prior to 
                consummation of the transaction; and
                    ``(D) after receiving such notice, the agency does 
                not require the institution to submit an application 
                with respect to such transaction and so notifies the 
                institution.''.
    (b) National Bank Consolidation and Merger Act.--
            (1) Consolidations.--Section 2 of the National Bank 
        Consolidation and Merger Act (12 U.S.C. 215) is amended--
                    (A) in subsection (a), by adding at the end the 
                following new sentence:
``No approval by the Comptroller of the Currency is required under this 
subsection for a transaction which involves the consolidation of banks 
that, at the time of the consolidation, are all subsidiaries (as 
defined in section 3 of the Federal Deposit Insurance Act) of the same 
company.''; and
                    (B) in subsection (b)--
                            (i) by striking ``, and thereafter the 
                        consolidation shall be approved by the 
                        Comptroller''; and
                            (ii) by striking ``when such consolidation 
                        is approved by the Comptroller''.
            (2) Mergers.--Section 3 of the National Bank Consolidation 
        and Merger Act (12 U.S.C. 215a) is amended--
                    (A) in subsection (a), by adding at the end the 
                following new sentence:
``No approval by the Comptroller of the Currency is required under this 
subsection for a transaction which involves the merger of banks that, 
at the time of the merger, are all subsidiaries (as defined in section 
3 of the Federal Deposit Insurance Act) of the same company.''; and
                    (B) in subsection (b)--
                            (i) by striking ``, and thereafter the 
                        merger shall be approved by the Comptroller''; 
                        and
                            (ii) by striking ``when such merger shall 
                        be approved by the Comptroller''.

SEC. 404. ELIMINATE REDUNDANT APPROVAL REQUIREMENT FOR OAKAR 
              TRANSACTIONS.

    (a) In General.--Section 5(d)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1815(d)(3)) is amended--
            (1) in subparagraph (A), by striking ``with the prior 
        written approval of the responsible agency under section 
        18(c)(2)'';
            (2) in subparagraph (E)--
                    (A) by striking clause (iv) and inserting the 
                following new clause:
                            ``(iv) A transaction shall not be 
                        authorized under this paragraph unless the 
                        acquiring, assuming, or resulting depository 
                        institution will meet all applicable capital 
                        requirements upon consummation of the 
                        transaction.'';
                    (B) by striking clauses (i) and (ii); and
                    (C) by redesignating clauses (iii) and (iv) (as 
                amended by subparagraph (A) of this paragraph) as 
                clauses (i) and (ii), respectively; and
            (3) by striking subparagraph (G) and redesignating the 
        subsequent subparagraphs accordingly.
    (b) Technical and Conforming Amendment.--Section 5156A(b)(1) of the 
Revised Statutes of the United States (12 U.S.C. 215c(b)(1)) is amended 
by striking ``section 5(d)(3) of the Federal Deposit Insurance Act 
or''.
    (c) Clerical Amendment.--The heading for section 5(d)(3)(E) of the 
Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)(E)) is amended by 
striking ``for approval, generally''.

SEC. 405. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED UPON BANK 
              HOLDING COMPANIES AND OTHER REGULATORY RELIEF UNDER THE 
              HOME OWNERS' LOAN ACT.

    (a) Exemption for Bank Holding Companies.--Section 10 of the Home 
Owners' Loan Act (12 U.S.C. 1467a) is amended by adding at the end the 
following new subsection:
    ``(t) Exemption for Bank Holding Companies.--This section shall not 
apply to a bank holding company that is subject to the Bank Holding 
Company Act of 1956 or any company controlled by such bank holding 
company (other than a savings association).''.
    (b) Definition of Savings and Loan Holding Company.--Section 
10(a)(1)(D) of the Home Owners' Loan Act (12 U.S.C. 1467a(a)(1)(D)) is 
amended to read as follows:
                    ``(D) Savings and loan holding company.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `savings and loan holding 
                        company' means any company which directly or 
                        indirectly controls a savings association or 
                        controls any other company which is a savings 
                        and loan holding company.
                            ``(ii) Exception for bank holding 
                        company.--The term `savings and loan holding 
                        company' does not include any company which is 
                        registered under, and subject to, the 
                        provisions of the Bank Holding Company Act of 
                        1956, or any company directly or indirectly 
                        controlled by such company.''.
    (c) Amendments to the Bank Holding Company Act of 1956.--Section 
4(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(i)) is 
amended by adding at the end the following new paragraphs:
            ``(4) Solicitation of views.--
                    ``(A) Notice to director.--Upon receiving any 
                application or notice by a bank holding company to 
                acquire directly or indirectly a savings association 
                under subsection (c)(8), the Board shall solicit the 
                Director's comments and recommendations with respect to 
                such acquisition.
                    ``(B) Comment period.--The comments and views of 
                the Director under subparagraph (A) with respect to any 
                acquisition subject to such subparagraph shall be 
                transmitted to the Board within 30 days of the receipt 
                by the Director of the notice relating to such 
                acquisition (or such shorter period as the Board may 
                specify if the Board advises the Director that an 
                emergency exists which requires expeditious action).
            ``(5) Examination.--
                    ``(A) Scope.--The Board shall consult with the 
                Director, as appropriate, in establishing the scope of 
                an examination by the Board of a bank holding company 
                that controls directly or indirectly a savings 
                association.
                    ``(B) Access to inspection reports.--Upon the 
                request of the Director, the Board shall furnish the 
                Director with a copy of any inspection report, 
                additional examination materials, or supervisory 
                information relating to any bank holding company which 
                directly or indirectly controls a savings association.
            ``(6)  Coordination of enforcement efforts.--The Board and 
        the Director shall cooperate in any enforcement action against 
        any bank holding company which controls a savings association, 
        if the relevant conduct involves such association.
            ``(7) Director defined.--For purposes of this section, the 
        term `Director' means the Director of the Office of Thrift 
        Supervision.''.
    (d) Alternative Test.--Section 10(m) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(m)) is amended--
            (1) in paragraph (1), by striking ``(2) and (7)'' and 
        inserting ``(2), (7), and (8)''; and
            (2) by adding at the end the following new paragraph:
            ``(8) Alternative test.--Any savings association which 
        meets the requirements set forth in section 7701(a)(19)(C) of 
        the Internal Revenue Code of 1986 shall be deemed to be a 
        qualified thrift lender and any qualified thrift lender shall 
        be deemed to meet the requirements of such section.''.

SEC. 406. ELIMINATE REQUIREMENT THAT APPROVAL BE OBTAINED FOR 
              DIVESTITURES.

    Section 2(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(g)) is amended--
            (1) by striking paragraph (3);
            (2) by inserting ``and'' after the semicolon at the end of 
        paragraph (1); and
            (3) by striking ``; and'' at the end of paragraph (2) and 
        inserting a period.

SEC. 407. ELIMINATE UNNECESSARY BRANCH APPLICATIONS.

    (a) National Bank Branch Applications.--Section 5155(i) of the 
Revised Statutes (12 U.S.C. 36(i)) is amended--
            (1) by striking ``(i) No branch'' and inserting ``(i) 
        Relocation.--
            ``(1) Approval required.--Except as provided in paragraph 
        (2), no branch''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) No approval required for certain branches.--
        Notwithstanding this subsection or subsection (b) or (c), the 
        consent and approval of the Comptroller of the Currency shall 
        not be required for a national bank to establish and operate, 
        or to retain and operate, a branch or seasonal agency if--
                    ``(A) the bank is well capitalized (as defined in 
                section 38 of the Federal Deposit Insurance Act and 
                regulations prescribed by the Comptroller of the 
                Currency under such section);
                    ``(B) the bank received a composite CAMEL rating of 
                `1' or `2' under the Uniform Financial Institutions 
                Rating System (or an equivalent rating under a 
                comparable rating system) as of its most recent 
                examination;
                    ``(C) the bank did not receive a `needs to improve' 
                or `substantial noncompliance' composite rating at its 
                most recent examination under the Community 
                Reinvestment Act of 1977; and
                    ``(D) the Comptroller of the Currency is otherwise 
                authorized to grant approval under this section to such 
                bank to establish and operate, or to retain and 
                operate, a branch or seasonal agency at the proposed 
                location.
            ``(3) Certain branches deemed to have approved 
        applications.--A branch or seasonal agency established by a 
        national bank under paragraph (2) shall be deemed to have been 
        established and operated pursuant to an application approved 
        under this section.''.
    (b) State Member Bank Branch Applications.--The 3d undesignated 
paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is 
amended by adding at the end the following: ``Notwithstanding the 
preceding 2 sentences, the approval of the Board shall not be required 
for a State member bank to establish and operate a branch or seasonal 
agency if--
            ``(A) the State member bank is well-capitalized (as defined 
        in section 38 of the Federal Deposit Insurance Act and 
        regulations prescribed by the Board under such section);
            ``(B) the State member bank received a composite CAMEL 
        rating of `1' or `2' under the Uniform Financial Institutions 
        Rating System (or an equivalent rating under a comparable 
        rating system);
            ``(C) the State member bank did not receive a `needs to 
        improve' or `substantial noncompliance' composite rating at its 
        most recent examination under the Community Reinvestment Act of 
        1977; and
            ``(D) the Board is otherwise authorized to grant approval 
        under this section to such State member bank to establish and 
        operate a branch or seasonal agency at the proposed location.
A branch or seasonal agency established by a State member bank under 
the previous sentence shall be deemed to have been established and 
operated pursuant to an application approved under this section.''.
    (c) State Nonmember Bank Branch Applications.--Section 18(d) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by adding 
at the end the following new paragraphs:
            ``(5) Application exemption for certain banks.--
        Notwithstanding paragraph (1), the consent of the Corporation 
        shall not be required for a State nonmember insured bank to 
        establish and operate any domestic branch if--
                    ``(A) the bank is well-capitalized (as defined in 
                section 38 and regulations prescribed by the 
                Corporation under such section);
                    ``(B) the bank received a composite CAMEL rating of 
                `1' or `2' under the Uniform Financial Institutions 
                Rating System (or an equivalent rating under a 
                comparable rating system) as of its most recent 
                examination;
                    ``(C) the bank did not receive a `needs to improve' 
                or `substantial noncompliance' composite rating as 
                result of the bank's most recent examination under the 
                Community Reinvestment Act of 1977; and
                    ``(D) the Corporation is otherwise authorized to 
                give consent under this section to such bank to 
                establish and operate a domestic branch at the proposed 
                location.
            ``(6) Approval granted.--A branch established by a State 
        member bank under paragraph (5) shall be deemed to have been 
        established and operated pursuant to an application approved 
        under this section.''.

SEC. 408. ELIMINATE BRANCH APPLICATIONS AND REQUIREMENTS FOR ATMs AND 
              SIMILAR FACILITIES.

    (a) Definition of Branch Under National Bank Act.--Section 5155(j) 
of the Revised Statutes (12 U.S.C. 36(j)) is amended--
            (1) by striking ``(j) The term'' and inserting ``(j) 
        Branch.--
            ``(1) In general.--The term''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Certain proprietary atms and remote servicing 
        units.--The term `branch' does not include any automated teller 
        machine or remote service unit which is owned and operated by a 
        depository institution--
                    ``(A) primarily for the benefit of the institution 
                and the affiliates of the institution; and
                    ``(B) which could operate a branch at the location 
                of such machine or unit.''.
    (b) Definition of Branch Under Federal Deposit Insurance Act.--
Section 3(o) of the Federal Deposit Insurance Act (12 U.S.C. 1813(o)) 
is amended--
            (1) by striking ``(o) The term'' and inserting ``(o) 
        Definitions Relating to Branches.--
            ``(1) Domestic branch.--
                    ``(A) In general.--The term''; and
            (2) by striking ``lent; and the term'' and inserting 
        ``lent.
                    ``(B) Certain proprietary atms and remote servicing 
                units.--The term `domestic branch' does not include any 
                automated teller machine or remote service unit which 
                is owned and operated by a depository institution--
                            ``(i) primarily for the benefit of the 
                        institution and the affiliates of the 
                        institution; and
                            ``(ii) which could operate a branch at the 
                        location of such machine or unit.
            ``(2) Foreign branch.--The term''.

SEC. 409. ELIMINATE REQUIREMENT FOR APPROVAL OF INVESTMENTS IN BANK 
              PREMISES FOR WELL CAPITALIZED AND WELL MANAGED BANKS.

    Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is amended 
by inserting before the period in that section the following: ``or, in 
the case of a bank which received a composite CAMEL rating of `1' or 
`2' under the Uniform Financial Institutions Rating System (or an 
equivalent rating under a comparable rating system) as of its most 
recent examination and, both before and immediately following the 
investment or loan, is well capitalized (as defined under section 38 of 
the Federal Deposit Insurance Act), the amount which is equal to 150 
percent of the capital stock and surplus of such bank''.

SEC. 410. ELIMINATE UNNECESSARY FILING FOR OFFICER AND DIRECTOR 
              APPOINTMENTS.

    Section 32(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1831i(d)) is amended to read as follows:
    ``(d) Additional Information.--
            ``(1) In general.--Any notice submitted to an appropriate 
        Federal banking agency with respect to an individual by any 
        insured depository institution or depository institution 
        holding company pursuant to subsection (a) shall include--
                    ``(A) the information described in section 
                7(j)(6)(A) about the individual; and
                    ``(B) such other information as the agency may 
                prescribe by regulation.
            ``(2) Waiver.--An appropriate Federal banking agency may 
        waive the requirement of this section by regulation or on a 
        case-by-case basis consistent with safety and soundness.''.

SEC. 411. STREAMLINING PROCESS FOR DETERMINING NEW NONBANKING 
              ACTIVITIES.

    Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)(8)) is amended by striking ``and opportunity for hearing''.

SEC. 412. DISPOSITION OF FORECLOSED ASSETS.

    Section 4(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)(2)) is amended--
            (1) by striking ``for not more than one year at a time''; 
        and
            (2) by striking ``but no such extensions shall extend 
        beyond a date five years'' and inserting ``and, in the case of 
        a bank holding company which has not disposed of such shares 
        within 5 years of the date such shares were acquired, the Board 
        may, upon the application of such company, grant additional 
        exemptions if, in the Board's judgment, such extension would 
        not be detrimental to the public interest and either the bank 
        holding company has made a good faith attempt to dispose of 
        such shares during such 5-year period or the disposal of such 
        shares during such 5-year period would have been detrimental to 
        the company, but the aggregate duration of such extensions 
        shall not extend 10 years''.

SEC. 413. INCREASE IN CERTAIN CREDIT UNION LOAN CEILINGS.

    Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C. 
1757(5)(A)) is amended--
            (1) in clause (iv), by striking ``$10,000'' and inserting 
        ``$50,000''; and
            (2) in clause (v), by striking ``$10,000'' and inserting 
        ``$50,000''.

   Subtitle B--Streamlining of Government Regulations; Miscellaneous 
                               Provisions

SEC. 421. ELIMINATE THE PER-BRANCH CAPITAL REQUIREMENT FOR NATIONAL 
              BANKS AND STATE MEMBER BANKS.

    Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended--
            (1) by striking subsection (h); and
            (2) by redesignating subsections (i) (as amended by section 
        407(a) of this title), (j) (as amended by section 408(a) of 
        this title), (k), and (l) as subsections (h), (i), (j), and 
        (k), respectively.

SEC. 422. BRANCH CLOSURES.

    (a) In General.--Section 42 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831r-1) is amended by adding at the end the following new 
subsection:
    ``(e) Scope of Application.--
            ``(1) In general.--This section shall not apply with 
        respect to--
                    ``(A) an automated teller machine;
                    ``(B) a branch which--
                            ``(i) has been acquired through merger, 
                        consolidation, purchase, assumption, or other 
                        method; and
                            ``(ii) is located--
                                    ``(I) within 2.5 miles of another 
                                branch of the acquiring institution; or
                                    ``(II) within a neighborhood 
                                currently being served by another 
                                branch of the acquiring institution,
                if such other branch of the acquiring institution is 
                expected to continue to provide banking services to 
                substantially all of the customers currently served by 
                the branch acquired;
                    ``(C) a branch which is closing and reopening at a 
                location which is--
                            ``(i) within 2.5 miles of the location of 
                        the branch being closed; or
                            ``(ii) within the same neighborhood as the 
                        branch being closed,
                if the branch at the new location is expected to 
                continue to provide banking services to substantially 
                all of the customers served by the branch at the former 
                location;
                    ``(D) a branch that is closed in connection with--
                            ``(i) an emergency acquisition under--
                                    ``(I) section 11(n); or
                                    ``(II) subsections (f) or (k) of 
                                section 13; or
                            ``(ii) any assistance provided by the 
                        Corporation under section 13(c); and
                    ``(E) any other branch closure whose exemption from 
                the notice requirements of this section would not 
                produce a result inconsistent with the purposes of this 
                section.
            ``(2) Regulations.--The appropriate Federal banking agency 
        shall, by regulation, determine the circumstances under which 
        any exemption under paragraph(1)(E) may be granted.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply as if such amendment had been included in section 42 of the 
Federal Deposit Insurance Act as of the date of the enactment of the 
Federal Deposit Insurance Corporation Improvement Act of 1991.

SEC. 423. AMENDMENTS TO THE DEPOSITORY INSTITUTIONS MANAGEMENT 
              INTERLOCKS ACT.

    (a) Dual Service in Same Area, Town, or Village.--Section 203 of 
the Depository Institution Management Interlocks Act (12 U.S.C. 3202) 
is amended--
            (1) by inserting ``(a) Prohibitions.--'' before ``A 
        management official''; and
            (2) by adding after subsection (a) the following new 
        subsection:
    ``(b) Small Market Share Exemption.--
            ``(1) In general.--This section shall not be construed as 
        prohibiting a management official of a depository institution 
        or depository holding company from serving as a management 
        official of another depository institution or depository 
        holding company not affiliated with such institution or holding 
        company if the depository institutions or depository holding 
        companies with which the management official serves hold, 
        together with all the affiliates of such institutions or 
        holding companies, in the aggregate no more that 20 percent of 
        the deposits in each relevant geographic banking market where 
        offices of the depository institutions or depository holding 
        companies or their affiliates are located.
            ``(2) Relevant geographic banking market defined.--For 
        purposes of paragraph (1), the term `relevant geographic 
        banking market' means--
                    ``(A) the area defined by the boundaries identified 
                by the Board of Governors of the Federal Reserve 
                System;
                    ``(B) if the Board has not defined such boundaries, 
                the area defined by the boundaries of the Ranally 
                Metropolitan Area in which the office of the depository 
                institution or the depository institution holding 
                company is located; and
                    ``(C) if the office of such institution or company 
                is not located within a Ranally Metropolitan Area, the 
                area defined by the county (or an equivalent area of 
                general local government) in which such office is 
                located.''.
    (b) Dual Service Among Larger Organizations.--Section 204 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3203) is 
amended to read as follows:

``SEC. 204. DUAL SERVICE AMONG LARGER ORGANIZATIONS.

    ``(a) In General.--If a depository institution, depository 
institution holding company, or depository institution affiliate of any 
such institution or company has total assets exceeding $2,500,000,000, 
a management official of such institution, company, or affiliate may 
not serve as a management official of any other depository institution, 
depository institution holding company, or depository institution 
affiliate of any such institution or company which--
            ``(1) is not an affiliate of the institution, company, or 
        affiliate of which such person is a management official; and
            ``(2) has total assets exceeding $1,500,000,000.
    ``(b) CPI Adjustments.--The dollar amounts in this section shall be 
adjusted annually after December 31, 1994, by the annual percentage 
increase in the Consumer Price Index for Urban Wage Earners and 
Clerical Workers published by the Bureau of Labor Statistics.''.
    (c) Extension of Grandfather Exemption.--Section 206 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3205) is 
amended--
            (1) in subsection (a), by striking ``for a period of, 
        subject to the requirements of subsection (c), 20 years after 
        the date of enactment of this title'';
            (2) in subsection (b), by striking the 2d sentence; and
            (3) by striking subsection (c).
    (d) Rules or Regulations.--Section 209 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3207) is amended--
            (1) by striking ``(a) In General.--Rules'' and inserting 
        ``Rules'';
            (2) by inserting ``, including rules or regulations which 
        permit service by a management official which would otherwise 
        be prohibited by section 203 or section 204,'' after ``title''; 
        and
            (3) by striking subsections (b) and (c).

SEC. 424. ACCELERATION OF REPAYMENT TO TREASURY.

    The Appraisal Subcommittee of the Financial Institutions 
Examination Council shall repay to the Secretary of the Treasury the 
funds specified in section 1108 of Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 by not later than September 30, 
1998, and the Secretary shall deposit such funds in the general fund of 
the Treasury.

SEC. 425. ELIMINATE UNNECESSARY AND DUPLICATIVE RECORDKEEPING AND 
              REPORTING REQUIREMENTS RELATING TO LOANS TO EXECUTIVE 
              OFFICERS AND PERMIT PARTICIPATION IN EMPLOYEE BENEFIT 
              PLANS.

    (a) Amendments to Section 22(h) of the Federal Reserve Act.--
            (1) Employee benefit plans.--Section 22(h)(2) of the 
        Federal Reserve Act (12 U.S.C. 375b(2)) is amended--
                    (A) by redesignating subparagraphs (A), (B), and 
                (C) as clauses (i), (ii), and (iii), respectively, and 
                moving the left margins of such clauses 2 ems to the 
                right;
                    (B) by striking ``(2) Preferential terms 
                prohibited.--A member bank'' and inserting ``(2) 
                Preferential terms prohibited.--
                    ``(A) In general.--A member bank''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) Exception.--No provision of this paragraph 
                shall be construed as prohibiting extensions of credit 
                that constitute a benefit or compensation program that 
                is widely available to and used by employees of the 
                member bank, including employees who are not executive 
                officers of the bank.''.
            (2) Exception for extensions of credit to executive 
        officers and directors of nonbank affiliates.--Section 
        22(h)(8)(B) of the Federal Reserve Act (12 U.S.C. 375b(8)(B)) 
        is amended to read as follows:
                    ``(B) Exception.--The Board may, by regulation, 
                make exceptions to subparagraph (A) for an executive 
                officer or director of a subsidiary of a company that 
                controls the member bank if--
                            ``(i) the executive officer or director 
                        does not have authority to participate, and 
                        does not participate, in major policymaking 
                        functions of the member bank; and
                            ``(ii) the assets of such subsidiary do not 
                        exceed 10 percent of the consolidated assets of 
                        a company that controls the member bank and 
                        such subsidiary (and is not controlled by any 
                        other company).''.
            (3) Recordkeeping requirements.--Section 22(h)(10) of the 
        Federal Reserve Act (12 U.S.C. 375b(10)) is amended by adding 
        at the end the following: ``The Board shall specify by 
        regulation the recordkeeping required of member banks to ensure 
compliance with this section.''.
    (b) Reporting Requirements.--
            (1) Unnecessary reports.--Section 22(g) of the Federal 
        Reserve Act (12 U.S.C. 375a) is amended--
                    (A) by striking paragraphs (6) and (9); and
                    (B) by redesignating paragraphs (7), (8), and (10) 
                as paragraphs (8), (9), and (10), respectively.
            (2) Unnecessary reports.--Section 7 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1817) is amended by striking 
        subsection (k).
            (3) Unnecessary reports regarding loans from correspondent 
        banks.--Section 106(b)(2) of the Bank Holding Company Act 
        Amendments of 1970 (12 U.S.C. 1972(2)) is amended--
                    (A) by striking subparagraph (G); and
                    (B) by redesignating subparagraphs (H) and (I) as 
                subparagraphs (G) and (H), respectively.
    (c) Amendments Relating to Loans to Executive Officers.--Section 
22(g) of the Federal Reserve Act (12 U.S.C. 375a) (as amended by 
subsection (a) of this section) is amended--
            (1) in paragraph (1)(D), by striking ``of any one of the 
        three categories respectively referred to in paragraphs (2), 
        (3), and (4)'' and inserting ``of any category referred to in 
        paragraph (2), (3), (4), (5), or (6)'';
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (6) and (7), respectively;
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Home equity lines of credit.--A member bank may make 
        a revolving open-end extension of credit to any executive 
        officer of the bank if the credit--
                    ``(A) does not exceed $100,000; and
                    ``(B) is secured by a dwelling that is owned by 
                such officer and used by the officer as a residence.
            ``(5) Loans secured by marketable assets.--A member bank 
        may extend credit to any executive officer of the bank if the 
        credit is secured by readily marketable assets of a value not 
        exceeding such amount as the Board may establish by 
        regulation.''; and
            (4) in paragraph (7) (as so redesignated by paragraph (2) 
        of this subsection) by striking ``(4)'' each place such term 
        appears and inserting ``(6)''.

SEC. 426. EXPANDED REGULATORY DISCRETION FOR SMALL BANK EXAMINATIONS.

    (a) Small Bank Size Discretion.--Section 10(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)) is amended--
            (1) by redesignating paragraph (9) as paragraph (10);
            (2) by redesignating the 2d of the 2 paragraphs designated 
        as paragraph (8) as paragraph (9); and
            (3) in paragraph (9) (as so redesignated), by striking 
        ``$175,000,000'' and inserting ``$250,000,000''.
    (b) Inflation Adjustment.--Section 10(d) of the Federal Deposit 
Insurance Act (12 U.S.C. 1820(d)) is amended by inserting after 
paragraph (10) (as so redesignated in subsection (a)(1) of this 
section) the following new paragraph:
            ``(11) Annual cpi adjustment.--The dollar amount in this 
        section shall be adjusted annually after December 31, 1994, by 
        the annual percentage increase in the Consumer Price Index for 
        Urban Wage Earners and Clerical Workers published by the Bureau 
of Labor Statistics.''.
    (c) Coordinated Federal and State Examinations.--The Federal 
banking agencies (as defined in section 3 of the Federal Deposit 
Insurance Act) shall submit semiannual reports to the Congress on the 
progress made by such agencies in implementing the requirements of 
section 10(d)(6) of the Federal Deposit Insurance Act until such 
agencies submit a final report that--
            (1) the examination system provided for in such section is 
        in place; and
            (2) such system provides for full coordination of 
        examinations of State depository institutions with State bank 
        supervisors.

SEC. 427. COST REIMBURSEMENT.

    Section 1115 of the Right to Financial Privacy Act (12 U.S.C. 3415) 
is amended by inserting ``(including corporate customers)'' after 
``pertaining to a customer''.

SEC. 428. IDENTIFICATION OF FOREIGN NONBANK FINANCIAL INSTITUTION 
              CUSTOMERS.

    (a) In General.--Section 5327(a)(1) of title 31, United States 
Code, is amended to read as follows:
            ``(1) is a financial institution (other than a foreign bank 
        (as defined in section 101(b) of the International Banking Act 
        of 1978)) which is a foreign person; and''.
    (b) Technical and Conforming Amendment.--The heading for section 
5327 of title 31, United States Code, is amended by inserting ``foreign 
nonbank'' after ``of''.
    (c) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by striking the item relating 
to section 5327 and inserting the following new item:

``5327. Identification of foreign nonbank financial institutions.''.

SEC. 429. PAPERWORK REDUCTION REVIEW.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, each appropriate Federal banking agency and the 
National Credit Union Administration, in consultation with insured 
depository institutions, insured credit unions, and other interested 
parties, shall--
            (1) review the extent to which current regulations require 
        insured depository institutions and insured credit unions to 
        produce unnecessary internal written policies; and
            (2) eliminate such requirements, where appropriate.
(b) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Insured depository institution; appropriate Federal 
        banking agency.--The terms ``insured depository institution'' 
        and ``appropriate Federal banking agency'' have the meanings 
        given to such terms in section 3 of the Federal Deposit 
        Insurance Act.
            (2) Insured credit union.--The term ``insured credit 
        union'' has the meaning given to such term in section 101(7) of 
        the Federal Credit Union Act.

SEC. 430. DAILY CONFIRMATIONS FOR HOLD-IN-CUSTODY REPURCHASE 
              TRANSACTIONS.

    (a) In General.--Before the end of the 1-year period beginning on 
the date of the enactment of this Act, the Secretary of the Treasury 
shall revise the regulation under section 15C of the Securities 
Exchange Act of 1934 relating to the obligations of financial 
institutions and of brokers and dealer registered under such Act 
holding custody of securities subject to a repurchase agreement to 
confirm, daily and in writing, the securities that are subject to such 
repurchase agreement.
    (b) Requirements for Revision.--The revision required under 
subsection (a) shall permit the counterparty to such agreement to waive 
in writing the right to obtain such daily written confirmation if the 
counterparty has received a clear and conspicuous disclosure before 
entering into any side agreement, in a form prescribed by the 
Secretary, that adequately informs the counterparty of the benefits of 
receiving such daily written confirmations.

SEC. 431. REQUIRED REGULATORY REVIEW OF REGULATIONS.

    (a) In General.--Not less frequently than once every 10 years, the 
Financial Institutions Examination Council (hereafter in this section 
referred to as the ``Council'') and each appropriate Federal banking 
agency (as defined in section 3(q) of the Federal Deposit Insurance 
Act) represented on the Council shall conduct a review of all 
regulations prescribed by the Council or by any such agency, 
respectively, in order to identify outdated or otherwise unnecessary 
regulatory requirements imposed upon insured depository institutions.
    (b) Process.--In conducting the review under subsection (a), the 
Council or the appropriate Federal banking agency shall--
            (1) categorize the regulations by type (such as consumer 
        regulations, safety and soundness regulations, or such other 
        designations as determined by the Council); and
            (2) at regular intervals, provide notice and solicit public 
        comment on a particular category or categories of regulations, 
        requesting commentators to identify areas of the regulations 
        that are outdated, unnecessary, or unduly burdensome.
    (c) Complete Review.--The Council or the appropriate Federal 
banking agency shall ensure that the notice and comment period 
described in subsection (b)(2) is conducted with respect to all 
regulations described in subsection (a) not less frequently than once 
every 10 years.
    (d) Regulatory Response.--The Council or the appropriate Federal 
banking agency shall--
            (1) publish in the Federal Register a summary of the 
        comments received under this section, identifying significant 
        issues raised and providing comment on such issues; and
            (2) eliminate unnecessary regulations to the extent that 
        such action is appropriate.
    (e) Report to Congress.--Not later than 30 days after carrying out 
subsection (d)(1), the Council shall provide to the Congress a report, 
which shall include--
            (1) a summary of any significant issues raised by public 
        comments received by the Council and the appropriate Federal 
        banking agencies under this section and the relative merits of 
        such issues; and
            (2) an analysis of whether the appropriate Federal banking 
        agency involved is able to address the regulatory burdens 
        associated with such issues by regulation, or whether such 
        burdens must be addressed by legislative action.

SEC. 432. COUNTRY RISK REQUIREMENTS.

    Subsections (a)(1) and (b) of section 905 of the International 
Lending Supervision Act of 1983 (12 U.S.C. 3904) are amended by 
striking ``shall'' and inserting ``may''.

SEC. 433. AUDIT COSTS.

    (a) In General.--
            (1) Auditor attestations.--Section 36 of the Federal 
        Deposit Insurance At (12 U.S.C. 1831m) is amended--
                    (A) in subsection (a)(2)(A)(ii), by striking 
                ``subsections (c) and (d)'' and inserting ``subsection 
                (c)'';
                    (B) by striking subsections (c) and (e); and
                    (C) by redesignating subsections (d), (f), (g), 
                (h), (i), and (j) as subsections (c), (d), (e), (f), 
                (g), and (h), respectively.
            (2) Public availability.--Section 36(a)(3) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by 
        inserting at the end the following new sentence: 
        ``Notwithstanding the preceding sentence, the Corporation and 
        the appropriate Federal banking agencies may designate certain 
        information as privileged and confidential and not available to 
        the public.''.
    (b) Exemption for Well-Capitalized and Well-Managed Insured 
Depository Institutions.--Section 36 of the Federal Deposit Insurance 
Act (12 U.S.C. 1831m) (as amended by subsection (a) of this section) is 
amended by adding at the end the following new subsection:
    ``(i) Exemption for Well-Capitalized and Well-Managed Insured 
Depository Institutions.--No provision of this section other than 
subsection (c) shall apply with respect to any insured depository 
institution which is well-capitalized and well-managed.''.
    (c) Technical and Conforming Amendments.--
            (1) Paragraph (1)(B) of section 36(e) of the Federal 
        Deposit Insurance Act (as so redesignated by subsection 
        (a)(1)(C) of this section) is amended by striking ``(b)(2), 
        (c), and (d)'' and inserting ``(b)(2) and (c)''.
            (2) Paragraph (1) of section 36(g) of the Federal Deposit 
        Insurance Act (as so redesignated by subsection (a)(1)(C) of 
        this section) is amended by striking ``(d)'' and inserting 
        ``(c)''.

SEC. 434. STANDARDS FOR DIRECTOR AND OFFICER LIABILITY.

    Section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(u)) is amended--
            (1) in paragraph (1), by inserting ``(other than an outside 
        director)'' after ``director'';
            (2) in paragraph (3), by inserting ``(other than an outside 
        director)'' after ``any other person''; and
            (3) in paragraph (4), by inserting ``or outside director'' 
        after ``or accountant)''.

SEC. 435. FOREIGN BANK APPLICATIONS.

    (a) Provisions Relating to Establishment of Bank Offices.--Section 
7(d) of the International Banking Act of 1978 (12 U.S.C. 3105(d)) is 
amended--
            (1) in paragraph (2), by striking ``The'' and inserting 
        ``Except as provided in paragraph (6), the'';
            (2) in paragraph (5), by striking ``Consistent with the 
        standards for approval in paragraph (2), the'' and inserting 
        ``The''; and
            (3) by adding at the end the following new paragraphs:
            ``(6) Exception.--
                    ``(A) In general.--If the Board is unable to find 
                under paragraph (2) that a foreign bank is subject to 
                comprehensive supervision or regulation on a 
                consolidated basis by the appropriate authorities in 
                its home country, the Board may nevertheless approve an 
                application under paragraph (1) by such foreign bank 
                if--
                            ``(i) the appropriate authorities in the 
                        home country of such foreign bank are working 
                        to establish arrangements for the consolidated 
                        supervision of such bank; and
                            ``(ii) all other factors are consistent 
                        with approval.
                    ``(B) Additional conditions.--The Board, after 
                requesting and considering the views of the appropriate 
                State bank supervisor or the Comptroller of the 
                Currency, as the case may be, may impose such 
                conditions or restrictions relating to activities or 
                business operations of the proposed branch, agency, or 
                commercial lending company subsidiary, including 
                restrictions on sources of funding, as are considered 
                appropriate in the public interest.
                    ``(C) Modification of conditions.--Any condition or 
                restriction imposed by the Board under this subsection 
                in connection with the approval of an application may 
                be varied or withdrawn where such modification is 
                consistent with the public interest.
            ``(7) Time period for board action.--
                    ``(A) Final action.--The Board shall take final 
                action on any application under paragraph (1) within 
                180 days of receipt of the application, except that the 
                Board may extend for an additional 180 days the period 
                within which to take final action on such application, 
                after providing notice of, and the reasons for, the 
                extension to the applicant foreign bank and any 
                appropriate State bank supervisor or the Comptroller of 
                the Currency, as the case may be.
                    ``(B) Failure to submit information.--The Board may 
                deny any application if it has not received information 
                requested from the applicant foreign bank or 
                appropriate authorities in the home country in 
                sufficient time to permit the Board to evaluate such 
                information adequately within the time periods for 
                final action set forth in subparagraph (A).
                    ``(C) Waiver.--A foreign bank may waive the 
                applicability of subparagraph (A) with respect to any 
                such application.''.
    (b) Provision Relating To Termination of Bank Offices.--Section 
7(e)(1)(A) of the International Banking Act of 1978 (12 U.S.C. 
3105(e)(1)(A)) is amended--
            (1) by striking ``(A)'' and inserting ``(A)(i)'';
            (2) by striking ``; or'' and inserting ``; and''; and
            (3) by inserting at the end the following new clause:
                    ``(ii) the appropriate authorities in the home 
                country are not making progress in establishing 
                arrangements for the comprehensive supervision or 
                regulation of such foreign bank on a consolidated 
                basis; or''.
    (c) Uniform Terminations of Foreign Bank Offices, Agencies, 
Branches, and Subsidiaries by the Federal Reserve System.--
            (1) In general.--Section 7(e)(1) of the International 
        Banking Act of 1978 (12 U.S.C. 3105(e)(1)) is amended--
                    (A) by inserting ``or the Comptroller of the 
                Currency'' after ``State bank supervisor'';
                    (B) by inserting ``or a Federal branch or agency'' 
                after ``commercial lending company subsidiary'' the 1st 
                place such term appears; and
                    (C) in the last sentence, by inserting ``or a 
                Federal branch or agency'' after ``commercial lending 
                company subsidiary''.
            (2) Technical and conforming amendment.--Section 7(e) of 
        the International Banking Act of 1978 (12 U.S.C. 3105(e)) is 
        amended--
                    (A) by striking paragraph (5); and
                    (B) by redesignating paragraphs (6) and (7) as 
                paragraphs (5) and (6), respectively.

SEC. 436. DUPLICATE EXAMINATION OF FOREIGN BANKS.

    Section 7(c)(1) of the International Banking Act of 1978 (12 U.S.C. 
3105(c)(1)) is amended--
            (1) by adding after clause (ii) of subparagraph (B) the 
        following new clause:
                            ``(iii) Avoidance of duplication.--In 
                        exercising its authority under this paragraph, 
                        the Board shall take all reasonable measures to 
                        reduce burden and avoid unnecessary duplication 
                        of examinations.'';
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) On-site examination.--Each Federal branch or 
                agency, and each State branch or agency, of a foreign 
                bank shall be subject to on-site examination by a 
                Federal banking agency or State bank supervisor as 
                frequently as would a national bank or State bank, 
                respectively, by its appropriate Federal banking 
                agency.''; and
            (3) by amending subparagraph (D) to read as follows:
                    ``(D) Cost of examinations.--The cost of any 
                examination undertaken pursuant to subparagraph (A) 
                shall be assessed against and collected from the 
                foreign bank or the foreign company that controls the 
                foreign bank, as the case may be, but only to the same 
                extent that fees are collected by the Board for 
                examination of any State member insured bank.''.

SEC. 437. SECOND MORTGAGES.

    (a) In General.--Section 103(aa)(1) of the Truth in Lending Act (15 
U.S.C. 1602(aa)(1)) is amended--
            (1) by inserting ``a subordinate mortgage on'' after 
        ``secured by''; and
            (2) by striking ``a residential mortgage transaction''.
    (b) Effect on Pending Cases.--Any administrative enforcement 
proceeding or other action which--
            (1) is pending on the date of the enactment of this Act; 
        and
            (2) is based on regulations in effect as of such date under 
        the Truth in Lending Act with respect to high-cost residential 
        mortgage transactions which are not subordinate mortgages,
shall be dismissed as of such date.

SEC. 438. STREAMLINING FDIC APPROVAL OF NEW STATE BANK POWERS.

    (a) In General.--Section 24(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831a(a)) is amended to read as follows:
    ``(a) Activities Generally.--
            ``(1) In general.--An insured State bank may not engage as 
        principal in any type of activity that is not permissible for a 
        national bank unless--
                    ``(A) the bank has given the Corporation written 
                notice of the bank's intention to engage in such 
                activity at least 60 days before commencing to engage 
                in the activity and within such 60-day period (or 
                within the extended period provided under paragraph 
                (2)) the Corporation has not disapproved the activity; 
                and
                    ``(B) the State bank is, and continues to be, in 
                compliance with applicable capital standards prescribed 
                by the appropriate Federal banking agency.
            ``(2) Extension of period.--The Corporation may extend the 
        60-day period referred to in paragraph (1) for issuing a notice 
        of disapproval with respect to any activity for an additional 
        30 days.
            ``(3) Contents of notice.--Any notice submitted by a State 
        bank under paragraph (1)(A) shall contain such information as 
        the Corporation may require.
            ``(4) Basis for disapproval.--The Corporation may 
        disapprove an activity for a State bank under this subsection 
        unless the Corporation determines that the activity would pose 
        no significant risk to the appropriate insurance fund.''.
    (b) Subsidiaries of Insured State Banks.--Section 24(d)(1) of the 
Federal Deposit Insurance Act (12 U.S.C. 1831a(d)(1)) is amended to 
read as follows:
            ``(1) Activities generally.--
                    ``(A) In general.--A subsidiary of an insured State 
                bank may not engage as principal in any type of 
                activity that is not permissible for a subsidiary of a 
                national bank unless--
                            ``(i) the subsidiary has given the 
                        Corporation written notice of the subsidiary's 
                        intention to engage in such activity at least 
                        60 days before commencing to engage in the 
                        activity and within such 60-day period (or 
                        within the extended period provided under 
                        paragraph (2)) the Corporation has not 
                        disapproved the activity; and
                            ``(ii) the bank is, and continues to be, in 
                        compliance with applicable capital standards 
                        prescribed by the appropriate Federal banking 
                        agency.
                    ``(B) Extension of period.--The Corporation may 
                extend the 60-day period referred to in subparagraph 
                (A) for issuing a notice of disapproval with respect to 
                any activity for an additional 30 days.
                    ``(C) Contents of notice.--Any notice submitted by 
                a subsidiary of an insured State bank under 
                subparagraph (A)(i) shall contain such information as 
                the Corporation may require.
                    ``(D) Basis for disapproval.--The Corporation may 
                disapprove an activity for a subsidiary of an insured 
                State bank under this paragraph unless the Corporation 
                determines that the activity would pose no significant 
                risk to the appropriate insurance fund.''.

SEC. 439. REPEAL OF CALL REPORT ATTESTATION REQUIREMENT.

    Section 5211(a) of the Revised Statutes (12 U.S.C. 161(a)) is 
amended by striking the 4th sentence.

SEC. 440. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE AS LIMITED 
              LIABILITY PARTNERSHIPS.

    (a) Amendment to Short Title.--Section 1 of the Bank Service 
Corporation Act (12 U.S.C. 1861(a)) is amended by striking subsection 
(a) and inserting the following new subsection:
    ``(a) Short Title.--This Act may be cited as the `Bank Service 
Company Act'.'';
    (b) Amendments to Definitions.--Section 1(b) of the Bank Service 
Corporation Act (12 U.S.C. 1861(b)) is amended--
            (1) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) the term `bank service company' means--
                    ``(A) any corporation--
                            ``(i) which is organized to perform 
                        services authorized by this Act; and
                            ``(ii) all of the capital stock of which is 
                        owned by 1 or more insured banks; and
                    ``(B) any limited liability company--
                            ``(i) which is organized to perform 
                        services authorized by this Act; and
                            ``(ii) all of the members of which are 1 or 
                        more insured banks.'';
            (2) in paragraph (6)--
                    (A) by striking ``corporation'' and inserting 
                ``company''; and
                    (B) by striking ``and'' after the semicolon;
            (3) by redesignating paragraph (7) as paragraph (8) and 
        inserting after paragraph (6) the following new paragraph:
            ``(7) the term `limited liability company' means any 
        company organized under the law of a State (as defined in 
        section 3 of the Federal Deposit Insurance Act) which provides 
        that a member or manager of such company is not personally 
        liable for a debt, obligation, or liability of the company 
        solely by reason of being, or acting as, a member or manager of 
        such company; and''; and
            (4) in paragraph (8) (as so redesignated)--
                    (A) by striking ``corporation'' each place such 
                term appears and inserting ``company''; and
                    (B) by striking ``capital stock'' and inserting 
                ``equity''.
    (c) Amendments to Section 2.--Section 2 of the Bank Service 
Corporation Act (12 U.S.C. 1862) is amended--
            (1) by striking ``corporation'' and inserting ``company'';
            (2) by striking ``corporations'' and inserting 
        ``companies''; and
            (3) in the heading for such section, by striking 
        ``corporation'' and inserting ``company''.
    (d) Amendments to Section 3.--Section 3 of the Bank Service 
Corporation Act (12 U.S.C. 1863) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company''; and
            (2) in the heading for such section, by striking 
        ``corporation'' and inserting ``company''.
    (e) Amendments to Section 4.--Section 4 of the Bank Service 
Corporation Act (12 U.S.C. 1864) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company'';
            (2) in subsection (b), by inserting ``or members'' after 
        ``shareholders'' each place such term appears;
            (3) in subsections (c) and (d), by inserting ``or member'' 
        after ``shareholder'' each place such term appears;
            (4) in subsection (e)--
                    (A) by inserting ``or members'' after ``national 
                bank and State bank shareholders'';
                    (B) by striking ``its national bank shareholder or 
                shareholders'' and inserting ``any shareholder or 
                member of the company which is a national bank'';
                    (C) by striking ``its State bank shareholder or 
                shareholders'' and inserting ``any shareholder or 
                member of the company which is a State bank'';
                    (D) by striking ``such State bank or banks'' and 
                inserting ``any such State bank''; and
                    (E) by inserting ``or members'' after ``State bank 
                and national bank shareholders'';
            (5) in subsection (f), by inserting ``or providing 
        insurance as principal, agent, or broker (except to the extent 
        permitted under subparagraph (A) or (E) of section 4(c)(8) of 
        the Bank Holding Company Act of 1956)'' after ``or deposit 
        taking''; and
            (6) in the heading for such section, by striking 
        ``corporation'' and inserting ``company''.
    (f) Amendments to Section 5.--Section 5 of the Bank Service 
Corporation Act (12 U.S.C. 1865) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company''; and
            (2) in the heading for such section, by striking 
        ``corporations'' and inserting ``companies''.
    (g) Amendments to Section 6.--Section 6 of the Bank Service 
Corporation Act (12 U.S.C. 1866) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company'';
            (2) by inserting ``or is not a member of'' after ``does not 
        own stock in'';
            (3) by striking ``the nonstockholding institution'' and 
        inserting ``such depository institution'';
            (4) by inserting ``or is a member of'' after ``that owns 
        stock in'';
            (5) in paragraphs (1) and (2), by inserting ``or 
        nonmember'' after ``nonstockholding''; and
            (6) in the heading for such section by inserting ``or 
        nonmembers'' after ``nonstockholders''.
    (h) Amendments to Section 7.--Section 7 of the Bank Service 
Corporation Act (12 U.S.C. 1867) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company'';
            (2) in subsection (a)--
                    (A) by inserting ``or principal member'' after 
                ``principal shareholder''; and
                    (B) by inserting ``or member'' after ``other 
                shareholder''; and
            (3) in the heading for such section, by striking 
        ``corporations'' and inserting ``companies''.

SEC. 441. BANK INVESTMENTS IN EDGE ACT AND AGREEMENT CORPORATIONS.

    The 10th undesignated paragraph of section 25A of the Federal 
Reserve Act (12 U.S.C. 618) is amended by striking the last sentence 
and inserting the following: ``Any national bank may invest in the 
stock of any corporation organized under this section. The aggregate 
amount of stock held by any national bank in all corporations engaged 
in business of the kind described in this section or section 25 shall 
not exceed an amount equal to 10 percent of the capital and surplus of 
such bank unless the Board determines that the investment of an 
additional amount by the bank would not be unsafe or unsound and, in 
any case, shall not exceed an amount equal to 25 percent of the capital 
and surplus of such bank.''.

SEC. 442. REPORT ON THE RECONCILIATION OF DIFFERENCES BETWEEN 
              REGULATORY ACCOUNTING PRINCIPLES AND GENERALLY ACCEPTED 
              ACCOUNTING PRINCIPLES.

    Before the end of the 180-day period beginning on the date of the 
enactment of this Act, each appropriate Federal banking agency (as 
defined in section 3 of the Federal Deposit Insurance Act) shall submit 
to the Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate a report on the actions taken and to be taken by 
the agency to eliminate or conform inconsistent or duplicative 
accounting and reporting requirements applicable to reports or 
statements filed with any such agency by insured depository 
institutions, as required by section 121 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991.

SEC. 443. WAIVERS AUTHORIZED FOR RESIDENCY REQUIREMENTS FOR NATIONAL 
              BANK DIRECTORS.

    The 1st sentence of section 5146 of the Revised Statutes of the 
United states (12 U.S.C. 72) is amended by inserting ``(1) the 
Comptroller of the Currency may, in the Comptroller's discretion, waive 
the residency requirements in the case of any director or a national 
bank to whom the requirement would otherwise apply, and (2)'' after 
``except that''.

                       TITLE V--LENDER LIABILITY

SEC. 501. LENDER LIABILITY.

    (a) Participation in Management.--
            (1) In general.--It is the sense of Congress that a person 
        who holds indicia of ownership primarily to protect the 
        person's security interest in a vessel or facility should not 
        be considered to have participated in management, as that term 
        is used in section 101(20) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601(20)), unless the person--
                    (A) exercises decisionmaking control over the 
                borrower's environmental compliance such that the 
                person has undertaken responsibility for the hazardous 
                substance handling or disposal practices of the vessel 
                or facility; or
                    (B) exercises control at a level comparable to that 
                of a manager of the borrower's vessel or facility such 
                that the person has assumed or manifested 
                responsibility for the overall management of the vessel 
                or facility encompassing day-to-day decisionmaking over 
                either environmental compliance or over the 
                operational, as opposed to financial and 
                administrative, aspects of the vessel or facility.
            (2) Operational aspects defined.--In paragraph (1)(B), the 
        term ``operational aspects'' includes functions such as those 
        of a facility or plant manager, operations manager, chief 
        operating officer, or chief executive officer.
    (b) Exclusions.--If is further the sense of Congress that the term 
``participation in management'' as used in such section 101(20) should 
not include any of the following:
            (1) The mere capacity to influence, or ability to 
        influence, or the unexercised right to control vessel or 
        facility operations.
            (2) Any act of a security interest holder to require 
        another person to comply with applicable laws or to respond 
        lawfully to disposal of any hazardous substance.
            (3) Conducting an act or failing to act prior to the time 
        that a security interest is created in a vessel or facility.
            (4) Holding a security interest in a vessel or facility or 
        abandoning or releasing such a security interest.
            (5) Including in the terms of an extension of credit, or in 
        a contract or security agreement relating to such an extension, 
        covenants, warranties, or other terms and conditions that 
        relate to environmental compliance.
            (6) Monitoring or enforcing the terms and conditions of the 
        extension of credit or security interest.
            (7) Monitoring or undertaking 1 or more inspections of the 
        vessel or facility.
            (8) Under section 107(d) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980, or under the 
        direction of an on-scene coordinator, conducting a response 
        action or other lawful means of addressing the release or 
        threatened release of a hazardous substance in connection with 
        the vessel or facility prior to, during, or upon the expiration 
        of the term of the extension of credit.
            (9) Providing financial or other advice or counseling in an 
        effort to mitigate, prevent, or cure default or diminution in 
        the value of the vessel or facility.
            (10) Restructuring, renegotiating, or otherwise agreeing to 
        alter the terms and conditions of the extension of credit or 
        security interest or exercising forbearance.
            (11) Exercising other remedies that may be available under 
        applicable law for the breach of any term or condition of the 
        extension of credit or security agreement.
            (12) Holding legal or equitable title acquired by a 
        security interest holder through foreclosure or its equivalent 
        primarily to protect a security interest provided that the 
        holder undertakes to sell, re-lease, or otherwise divest the 
        property in a reasonably expeditious manner on commercially 
        reasonable terms, taking into account market conditions and 
        legal and regulatory requirements.
    (c) Security Interest.--It is further the sense of Congress that 
the term ``security interest'' as used in such section 101(20) should 
include rights under a mortgage, deed of trust, assignment, judgment, 
lien, pledge, security agreement, factoring agreement, lease, or any 
other right accruing to person to secure the repayment of money, the 
performance of a duty, or some other obligation.
    (d) Miscellaneous.--It is further the sense of the Congress that 
the potential Superfund liability of fiduciaries and the potential 
Resource Conservation and Recovery Act liability of lenders and 
fiduciaries should be addressed by the Congress.

    TITLE VI--ANNUAL STUDY AND REPORT ON IMPACT ON LENDING TO SMALL 
                                BUSINESS

SEC. 601. ANNUAL STUDY AND REPORT.

      Not later than 12 months after the date of the enactment of this 
Act, and annually thereafter, the Board of Governors of the Federal 
Reserve System, the Director of the Office of Thrift Supervision, the 
Comptroller of the Currency, and the Board of Directors of the Federal 
Deposit Insurance Corporation shall jointly conduct a study and submit 
to the Congress a report on the extent to which this Act and the 
amendments made by this Act have, through reductions in regulatory 
burdens, resulted in increased lending to small businesses.
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