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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 962 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 962

To increase the amount of credit available to fuel local, regional, and 
national economic growth by reducing the regulatory burden imposed upon 
       safe, sound, and properly managed financial institutions.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 18, 1993

 Mr. Bereuter (for himself and Mr. Bacchus of Florida) introduced the 
  following bill; which was referred to the Committee on Banking and 
                                Finance

_______________________________________________________________________

                                 A BILL

 
To increase the amount of credit available to fuel local, regional, and 
national economic growth by reducing the regulatory burden imposed upon 
       safe, sound, and properly managed financial institutions.

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

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic Growth 
and Financial Institutions Regulatory Paperwork Reduction Act of 
1993''.
    (b) Table of Contents.--

           TITLE I--REGULATORY IMPACT ON CREDIT AVAILABILITY

                     Subtitle A--General Provisions

Sec. 101. Regulation of real estate lending
Sec. 102. Real estate appraisal amendment.
Sec. 103. Public deposits.
     Subtitle B--Impact of Accounting and Capital Issues on Credit 
                              Availability

Sec. 111. Audit costs.
Sec. 112. Recourse agreements.
Sec. 113. Market value accounting.
Sec. 114. Report on capital standards and their impact on the economy.
Sec. 115. Minimize potential impact of capital standards on credit 
                            availability.
                Subtitle C--Disincentives to Risk-Taking

Sec. 121. Due process protections.
Sec. 122. Culpability standards for outside directors.
        Subtitle D--Miscellaneous Credit Availability Provisions

Sec. 131. Regulatory appeals process.
Sec. 132. Aggregate limits on insider lending.
Sec. 133. Sterile reserves studies.
Sec. 134. Credit card accounts receivable sales.
Sec. 135. Changes to The Federal Home Loan Bank Act to promote credit 
                            availability.
                  TITLE II--REGULATORY MICROMANAGEMENT

Sec. 201. Regulatory standards.
Sec. 202. Paperwork reduction review.
Sec. 203. Rules on deposit taking.
Sec. 204. Adequate transition period for new regulations.
         TITLE III--UNNECESSARY COST, PAPERWORK, AND REGULATION

                     Subtitle A--General Provisions

Sec. 301. Annual examinations.
Sec. 302. Coordinated examinations.
Sec. 303. Differences in accounting principles.
Sec. 304. Reduction of call report burdens.
Sec. 305. Regulatory review of capital compliance burden.
Sec. 306. Branch closures.
Sec. 307. Bank Secrecy Act amendments.
Sec. 308. Clarifying amendments.
Sec. 309. Limiting potential liability on foreign accounts.
Sec. 310. Repeal out-dated statutory provision.
                Subtitle B--Holding Company Efficiencies

Sec. 321. Expedited procedures for forming a bank holding company.
Sec. 322. Exemption of certain holding company formations from 
                            registration under the Securities Act of 
                            1933.
Sec. 323. Expedited procedures for bank holding companies to seek 
                            approval to engage in nonbanking 
                            activities.
Sec. 324. Reduction of postapproval waiting period for bank holding 
                            company acquisitions.
Sec. 325. Reduction of postapproval waiting period for bank mergers.
     TITLE IV--CONSUMER INCONVENIENCE, PAPERWORK, AND COST; OTHER 
                         NONSUPERVISORY REFORMS

     Subtitle A--Consumer Benefits and Lending Process Improvements

Sec. 401. Streamlined lending process for consumer benefit.
Sec. 402. Exemption for certain borrowers.
Sec. 403. Modification of waiver of right of rescission.
Sec. 404. Alternative disclosures for adjustable rate mortgages.
Sec. 405. Exemption for business accounts.
Sec. 406. Elimination of duplicate disclosures for home equity loans.
                Subtitle B--Other Nonsupervisory Reforms

     Part 1--Expedited Funds Availability and Electronic Transfers

Sec. 411. Availability schedules.
Sec. 412. Definition of a new account.
Sec. 413. Jurisdiction.
Sec. 414. Unauthorized electronic fund transfers.
             Part 2--Amendments to the Truth In Lending Act

Sec. 421. Liability for unauthorized use of credit cards.
                    Part 3--Homeownership Amendments

Sec. 431. Home mortgage disclosure act exemption.
Sec. 432. Homeownership debt counseling notification.
Sec. 433. Elimination of duplicative data collection.
    Part 4--Amendments to the Real Estate Settlements Procedures Act

Sec. 441. Clarify disclosure requirements.
Sec. 442. Exemption of business loans.
                     TITLE V--COMMUNITY INVESTMENT

Sec. 501. Community Reinvestment Act amendments.

           TITLE I--REGULATORY IMPACT ON CREDIT AVAILABILITY

                     Subtitle A--General Provisions

SEC. 101. REGULATION OF REAL ESTATE LENDING.

    Subsection (o) of section 18 of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(o)) (as added by section 304 of the Federal Insurance 
Corporation Improvement Act of 1991) is amended--
            (a) by redesignating paragraph (4) as paragraph (5); and
            (b) by inserting new paragraph (4) as follows:
    ``(4) Consideration of Particular Impact.--In prescribing standards 
under paragraph (1), the appropriate Federal banking agencies shall, 
consistent with safety and soundness,--
            ``(A) consider the impact that such standards have on the 
        availability of credit for small business, residential, and 
        agricultural purposes, and on low- and moderate-income 
        communities; and
            ``(B) minimize the negative impact that these standards 
        have on the availability of credit for such purposes and in 
        such areas.''

SEC. 102. REAL ESTATE APPRAISAL AMENDMENT.

    Section 1122 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3351) is amended--
            (a) by redesignating subsections (b), (c), (d) and (e) as 
        subsections (c), (d), (e) and (f), respectively;
            (b) by adding the following new subsection (b):
    ``(b) Reciprocity.--The Appraisal Subcommittee shall encourage the 
States to develop reciprocity agreements among themselves so as to 
readily authorize appraisers licensed or certified in one State and in 
good standing with their State appraiser certifying or licensing agency 
to perform appraisals in another State or States as though they were 
licensed or certified in that State or States.''; and
    (c) by adding at the end of subsection (a)(3) the following new 
sentence: ``A State appraiser certifying or licensing agency shall not 
impose excessive fees or burdensome requirements for temporary practice 
under this subsection, as determined by the Appraisal Subcommittee.''.

SEC. 103. PUBLIC DEPOSITS.

    Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)) is amended--
            (a) by inserting ``(1) In General.--'' before ``No 
        agreement which tends'';
            (b) by redesignating paragraphs (1), (2), (3) and (4) as 
        subparagraphs (A), (B), (C) and (D) respectively; and
            (c) by inserting the following new paragraph (2):
    ``(2) Exception.--This subsection shall not apply to any agreement 
permitting or affecting the deposit custody or collateralization of 
funds of any public entity.''.

     Subtitle B--Impact of Accounting and Capital Issues on Credit 
                              Availability

SEC. 111. AUDIT COSTS.

    (a) In General.--Section 36 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831m) (as added by section 112 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991) is amended--
            (1) Auditor attestations.--
                    (A) in subsection (a)(2)(A)(ii), by striking 
                ``subsections (c) and (d)'' and inserting ``subsection 
                (c)'';
                    (B) by striking subsection (c);
                    (C) in subsection (d), by deleting ``(d)'' and 
                inserting ``(c)''; and
                    (D) by striking subsection (e);
            (2) Duplicative reporting.--in subsection (i), by striking 
        ``if--(1) services and functions'' and all that follows through 
        ``or the appropriate Federal banking agency.'' and inserting 
        ``if services and functions comparable to those required under 
        this section are provided at the holding company level.'';
            (3) Independent audit committees.--
                    (A) in subsection (g)(1)(A), by striking 
                ``entirely'' and inserting ``the majority of which 
                is'';
                    (B) in subsection (g)(1)(C),
                            (i) by inserting ``and'' after the 
                        semicolon in clause (i), and by striking ``; 
                        and'' in clause (ii) and inserting ``.''; and
                            (ii) by striking clause (iii);
                    (C) in subsection (g)(1), by inserting the 
                following new subparagraph:
                    ``(D) Exemptive authority.--Each appropriate 
                Federal banking agency shall, by regulation, exempt 
                from the requirements of this subsection all insured 
                depository institutions which face hardships in 
                retaining competent directors on their internal audit 
                committees as a result of this subsection. In 
                determining what types of institutions will be 
                exempted, the agency shall consider such factors as the 
                size of the institution and the availability of 
                competent outside directors in the community.''; and
            (4) Public availability.--In subsection (a)(3), by 
        inserting at the end the following new sentence--
        ``Notwithstanding the previous sentence, the Corporation and 
        the appropriate Federal banking agencies may designate certain 
        information as privileged and confidential and not available to 
        the public.''.
            (5) Quarterly reports.--In subsection (g)(2), by inserting 
        the following new subparagraph (D)--
                    ``(D) Notice to institution.--Upon determining that 
                an institution's quarterly reports shall be subject to 
                the requirements of subparagraph (A), the Corporation 
                shall promptly provide the institution with written 
                notice of such determination.''.
            (6) by redesignating subsections (f) through (j) as 
        subsections (d) through (h), respectively.
    (b) Effective Date.--Section 112(b) of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 is amended by striking 
``December 31, 1992'' and inserting ``December 31, 1993''.

SEC. 112. RECOURSE AGREEMENTS.

    Section 37(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(b)) (as added by section 121 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended by adding at the end 
the following new paragraph (3):
            ``(3) Recourse agreements.--Each appropriate Federal 
        banking agency shall require insured depository institutions to 
        use accounting principles consistent with generally accepted 
        accounting principles in determining, for purposes of 
        compliance with statutory or regulatory requirements, the 
        capital required to be held against loans sold with 
        recourse.''.

SEC. 113. MARKET VALUE ACCOUNTING.

    Section 37(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(a)(3)) (as added by section 121 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended by striking 
subparagraph (D).

SEC. 114. REPORT ON CAPITAL STANDARDS AND THEIR IMPACT ON THE ECONOMY.

    (a) Study.--No later than 90 days after enactment of this Act, the 
Department of the Treasury, after consultation with the Federal banking 
agencies, shall report to the House and Senate Banking Committees on 
the effect that the implementation of risk based capital standards, 
including the Basle international capital standards, is having on--
            (1) the safety and soundness of insured depository 
        institutions;
            (2) the availability of credit, particularly to individuals 
        and small businesses; and
            (3) economic growth.
    The report shall contain any recommendations with respect to 
capital standards that the Department of the Treasury may wish to 
provide.
    (b) Definition.--For purposes of this section, the terms ``Federal 
banking agency'' and ``insured depository institution'' have the same 
meanings as in section 3 of the Federal Deposit Insurance Act.

SEC. 115. MINIMIZE POTENTIAL IMPACT OF CAPITAL STANDARDS ON CREDIT 
              AVAILABILITY.

    Section 305 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
            (a) in subsection (b)(1)(A)--
                    (1) by striking clauses (ii) and (iii);
                    (2) by striking ``(A) take adequate account of--(i) 
                interest-rate risk'' and inserting ``(A) take adequate 
                account of interest-rate risk; and''.
    (b) by striking paragraph (3) in subsection (b) and inserting the 
following new paragraph (3):
            ``(3) Timing for prescribing revised standards.--
                    ``(A) Interest rate risk.--No appropriate Federal 
                banking agency shall prescribe final regulations in the 
                Federal Register to implement subparagraph (A) of 
                paragraph (1) of this subsection prior to--
                            ``(i) the implementation of similar 
                        standards at an international level; and
                            ``(ii) the establishment of reasonable 
                        transition rules, subsequent to the occurrence 
                        specified in clause (i), to facilitate 
                        compliance with those regulations.
                    ``(B) Multifamily mortgages.--Each appropriate 
                Federal banking agency shall--
                            ``(i) publish final regulations in the 
                        Federal Register to implement paragraph (1)(B) 
                        not later than 18 months after the date of 
                        enactment of this Act; and
                            ``(ii) establish reasonable transition 
                        rules to facilitate compliance with those 
                        regulations.''.

                Subtitle C--Disincentives to Risk-Taking

SEC. 121. DUE PROCESS PROTECTIONS.

    (a) Attachment of Assets.--
            (1) Insured depository institutions.--
                    (A) section 11(d)(19) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1821(d)(19)) is amended--
                            (i) in subparagraph (A), by striking 
                        ``without regard'' and all that follows through 
                        ``immediate''; and
                            (ii) in subparagraph (B), by striking ``(as 
                        modified with respect to such proceeding by 
                        subparagraph (A))''.
                    (B) section 8(b) of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818(b)) is amended by redesignating 
                subsection (b)(6)(F) as subsection (b)(6)(G), and 
                inserting after subsection (b)(6)(E) the following:
            ``(F) prohibit such person from withdrawing, transferring, 
        removing, dissipating, or disposing of any funds, assets or 
        other property where injury, loss, or damage to such property 
        is irreparable and immediate; and''.
                    (C) section 8(i) of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818(i)) is amended by striking 
                paragraph (4)(B) and inserting the following:
            ``(B) Standard.--Rule 65 of the Federal Rules of Civil 
        Procedure shall apply with respect to any proceeding under this 
        paragraph.''.
            (2) Credit unions.--
                    (A) Section 207(b)(2)(H) of the Federal Credit 
                Union Act (12 U.S.C. 1787(b)(2)(H)) is amended--
                            (i) in clause (i), by striking ``without 
                        regard'' and all that follows through 
                        ``immediate''; and
                            (ii) in clause (ii), by striking ``(as 
                        modified with respect to such proceeding by 
                        clause (i))''.
                    (B) Section 206(e)(3) of the Federal Credit Union 
                Act (12 U.S.C. 1786(e)(3)) is amended by redesignating 
                subsection (e)(3)(F) as subsection (e)(3)(G), and 
                inserting after subsection (e)(3)(E) the following:
    ``(F) prohibit such person from withdrawing, transferring, 
removing, dissipating, or disposing of any funds, assets or other 
property where injury, loss, or damage to such property is irreparable 
and immediate; and''.

SEC. 122. CULPABILITY STANDARDS FOR OUTSIDE DIRECTORS.

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

        Subtitle D--Miscellaneous Credit Availability Provisions

SEC. 131. REGULATORY APPEALS PROCESS.

    (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 shall establish an independent 
appellate process within its agency responsible for reviewing material 
supervisory determinations made at insured depository institutions or 
credit unions that it supervises.
    (b) Review Process.--In establishing this independent appellate 
process, each agency shall ensure--
            (1) that any appeal of a supervisory determination from any 
        insured depository institution or credit union, or any officer, 
        director, employee or other representative of any insured 
        depository institution or credit union, be heard and decided 
        expeditiously;
            (2) that appropriate safeguards exist for protecting the 
        appellant from retaliation by agency examiners; and
            (3) that the ruling agency officer have the authority, 
        where appropriate and as justice so requires, to stay the 
        supervisory determination pending completion of the appellate 
        process.
    (c) Comment Period.--Each agency shall provide public notice and 
opportunity for comment on proposed guidelines for an appellate process 
not later than 90 days after enactment of this Act.
    (d) Definitions.--For purposes of this section--
            (1) the term ``agency'' shall refer to the appropriate 
        Federal banking agency and the National Credit Union 
        Administration;
            (2) the terms ``insured depository institution'' and 
        ``appropriate Federal banking agency'' have the same meanings 
        as in section 3 of the Federal Deposit Insurance Act; and
            (3) the term ``material supervisory determination'' 
        includes determinations relating to exam ratings, the adequacy 
        of loan loss reserve provisions, and loan classifications on 
        loans significant to the institution.

SEC. 132. AGGREGATE LIMITS ON INSIDER LENDING.

    Section 22(h)(5) of the Federal Reserve Act (12 U.S.C. 375b(5)) (as 
amended by section 306 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended--
            (a) by redesignating subparagraph (C) as subparagraph (D);
            (b) by inserting the following new subparagraph (C):
    ``(C) Small Bank Exception.--Notwithstanding subparagraph (A), 
member banks with less than $100,000,000 in deposits may make such 
extensions of credit in the aggregate to persons specified in 
subparagraph (A) in an amount not to exceed 2 times the bank's 
unimpaired capital and unimpaired surplus.''; and
            (c) in subparagraph (D), as redesignated, by striking 
        ``less than $100,000,000'' and inserting ``between $100,000,000 
        and $250,000,000''.

SEC. 133. STERILE RESERVES STUDIES.

    (a) Federal Reserve Study.--No later than 90 days after enactment 
of this Act, the Board of Governors of the Federal Reserve System, in 
consultation with the Federal Deposit Insurance Corporation, shall 
study and report to Congress on--
            (1) the necessity, for monetary policy purposes, of 
        continuing to require insured depository institutions to 
        maintain sterile reserves;
            (2) the appropriateness of paying insured depository 
        institutions with a market rate of interest on sterile 
        reserves, or in the alternative, providing payment of this 
        interest into the appropriate deposit insurance fund;
            (3) the monetary impact that the failure to pay interest on 
        sterile reserves has had on insured depository institutions, 
        including an estimate of the total dollar amount of interest 
        and potential income lost by insured depository institutions;
            (4) the degree to which the failure to pay interest on 
        sterile reserves has impacted upon economic growth; and
            (5) the impact that failure to pay interest on sterile 
        reserves has had on the ability of the banking industry to 
        compete with nonbanking providers of financial services and 
        with foreign banks.
    (b) Budgetary Impact Study.--No later than 90 days after enactment 
of this Act, the Office of Management and Budget and the Congressional 
Budget Office, in consultation with the Senate and House Committees on 
the Budget, shall jointly study and report to Congress on the budgetary 
impact of--
            (1) paying insured depository institutions a market rate of 
        interest on sterile reserves; and
            (2) paying such interest into the respective deposit 
        insurance funds.
    (c) Definition.--For purposes of this section, the term ``insured 
depository institution'' has the same meaning as in section 3 of the 
Federal Deposit Insurance Act.

SEC. 134. CREDIT CARD ACCOUNTS RECEIVABLE SALES.

    Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)) is amended by adding at the end the following new paragraphs:
    ``(14) Selling Credit Card Accounts Receivable.--
            ``(A) Notification required.--An undercapitalized insured 
        depository institution (as defined in section 38) shall notify 
        the Corporation in writing before entering into an agreement to 
        sell credit card accounts receivable.
            ``(B) Waiver by corporation.--The Corporation may at any 
        time, in its sole discretion and upon such terms as it may 
        prescribe, waive its right to repudiate an agreement to sell 
        credit card accounts receivable if the Corporation--
                    ``(i) determines that the waiver is in the best 
                interests of the deposit insurance fund; and
                    ``(ii) provides a written waiver to the selling 
                institution.
            ``(C) Effect of waiver on successors.--
                    ``(i) In general.--If, under subparagraph (B), the 
                Corporation has waived its right to repudiate an 
                agreement to sell credit card accounts receivable--
                            ``(I) any provision of the agreement that 
                        restricts solicitation of a credit card 
                        customer of the selling institution, or the use 
                        of a credit card customer list of the 
                        institution, shall bind any receiver or 
                        conservator of the institution; and
                            ``(II) the Corporation shall require any 
                        acquirer of the selling institution, or of 
                        substantially all of the selling institution's 
                        assets or liabilities, to agree to be bound by 
                        a provision described in subclause (I) as if 
                        the acquirer were the selling institution.
                    ``(ii) Exception.--Clause (i)(II) does not--
                            ``(I) restrict the acquirer's authority to 
                        offer any product or service to any person 
                        identified without using a list of the selling 
                        institution's customers in violation of the 
                        agreement;
                            ``(II) require the acquirer to restrict any 
                        preexisting relationship between the acquirer 
                        and a customer; or
                            ``(III) apply to any transaction in which 
                        the acquirer acquires only insured deposits.
            ``(D) Waiver not actionable.--The Corporation shall not, in 
        any capacity, be liable to any person for damages resulting 
        from waiving or failing to waive the Corporation's right under 
        this section to repudiate any contract or lease, including an 
        agreement to sell credit card accounts receivable. No court 
        shall issue any order affecting any such waiver or failure to 
        waive.
            ``(E) Other authority not affected.--This paragraph does 
        not limit any other authority of the Corporation to waive the 
        Corporation's right to repudiate an agreement or lease under 
        this section.
    ``(15) Certain Credit Card Customer Lists Protected.--
            ``(A) In general.--If any insured depository institution 
        sells credit card accounts receivable under an agreement 
        negotiated at arm's length that provides for the sale of the 
        institution's credit card customer list, the Corporation shall 
        prohibit any party to a transaction with respect to the 
        institution under this section or section 13 from using the 
        list except as permitted under the agreement.
            ``(B) Fraudulent transactions excluded.--Subparagraph (A) 
        does not limit the Corporation's authority to repudiate any 
        agreement entered into with the intent to hinder, delay, or 
        defraud the institution, the institution's creditors, or the 
        Corporation.''.

SEC. 135. CHANGES TO THE FEDERAL HOME LOAN BANK ACT TO PROMOTE CREDIT 
              AVAILABILITY

    (a) Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(a)) is amended--
            (1) by redesignating subparagraphs (4) and (5) as 
        subparagraphs (5) and (6), respectively;
            (2) in newly redesignated subparagraph (5) (as redesignated 
        by subsection (a)(1) of this section), by inserting 
        ``nonresidential'' after the first ``Other'';
            (3) by inserting new subparagraph (4) as follows:
            ``(4) Other residential real estate-related collateral 
        acceptable to the Bank.''; and
            (4) in newly redesignated subparagraph (6) (as redesignated 
        by subsection (a)(1) of this section), by striking ``(4)'' and 
        inserting ``(5)''.
    (b) Section 11(h) of the Federal Home Loan Bank Act (12 U.S.C. 
1431(h)) is amended by inserting after ``Federal Home Loan Bank 
System,'' the following clause: ``the purchase of participation 
interests in residential construction loans that are originated by 
member institutions and that comply with uniform Federal regulations on 
real estate lending standards under subsection (o) of section 1828 of 
title 12 of the United States Code, the authority to enhance the credit 
quality of any such participation interests in residential construction 
loans that the Banks resell,''.

                  TITLE II--REGULATORY MICROMANAGEMENT

SEC. 201. REGULATORY STANDARDS.

    Section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831s) 
(as added by section 132 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended--
            (a) in subsection (a), by inserting ``subject to this 
        section'' after ``all insured depository institutions and 
        depository institution holding companies'';
            (b) in subsection (b), by inserting ``subject to this 
        section'' after ``all insured depository institutions and 
        depository institution holding companies'';
            (c) in subsection (c), by inserting ``subject to this 
        section'' after ``all insured depository institutions'';
            (d) in subsection (e)(1)(A), by inserting ``subject to this 
        section'' after ``insured depository institution or depository 
        institution holding company'';
            (e) in subsection (e)(2), by inserting ``subject to this 
        section'' after ``insured depository institutions or depository 
        institution holding company''; and
            (f) by inserting the following new subsection (h):
    ``(h) Applicability.--
            ``(1) In general.--This section shall not apply to any 
        adequately capitalized or well capitalized insured depository 
        institution (as defined in section 38) which has a CAMEL 
        composite rating of 1 or 2 under the Uniform Financial 
        Institution Rating System or an equivalent rating under a 
        comparable system.
            ``(2) Discretion.--Each appropriate Federal banking agency 
        may waive compliance with the requirements of this section, 
        either partially or fully and on a case-by-case basis, where 
        such action will not threaten the safety and soundness of the 
        institution.''.

SEC. 202. PAPERWORK REDUCTION REVIEW.

    Not later than 180 days after the date of enactment of this Act, 
each appropriate Federal banking agency, in consultation with insured 
depository institutions and other interested parties, shall--
            (a) review the extent to which current regulations require 
        insured depository institutions to produce unnecessary internal 
        written policies; and
            (b) eliminate such requirements, where appropriate.
For purposes of this section, the terms ``insured depository 
institution'' and ``appropriate Federal banking agency'' have the same 
meanings as in section 3 of the Federal Deposit Insurance Act.

SEC. 203. RULES ON DEPOSIT TAKING.

    Section 29(g)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831f(g)(3)) is amended--
            (1) by inserting ``undercapitalized'' after ``includes 
        any''; and
            (2) by inserting ``undercapitalized'' after ``employee of 
        any''.

SEC. 204. ADEQUATE TRANSITION PERIOD FOR NEW REGULATIONS.

    (a) Adequate Transition Period for New Regulations.--No new 
regulation issued by a Federal banking agency which imposes additional 
reporting, disclosure or other requirements on insured depository 
institutions shall be effective prior to 180 days from the date that 
regulation becomes final unless--
            (1) the agency makes a finding that an emergency exists 
        which requires sooner action or that such a delay would have a 
        substantial impact upon the safety and soundness of the 
        industry; or
            (2) explicitly directed by Congress.
    (b) Definition.--For purposes of this section, the terms ``Federal 
banking agency'' and ``insured depository institution'' have the same 
meanings as in section 3 of the Federal Deposit Insurance Act.

         TITLE III--UNNECESSARY COST, PAPERWORK AND REGULATION

                     Subtitle A--General Provisions

SEC. 301. ANNUAL EXAMINATIONS.

    (a) In General.--Section 10 of the Federal Deposit Insurance Act 
(12 U.S.C. 1820) (as amended by section 111 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991) is amended--
            (1) Small institution treatment.--In subsection (d), delete 
        paragraph (4) and insert the following new paragraph:
            (4) 2-year rule for certain small institutions.--Paragraphs 
        (1), (2), and (3) shall apply with `24-month' substituted for 
        `12-month' if--
                    ``(A) the insured depository institution has total 
                assets of less than $250,000,000;
                    ``(B) the institution is well capitalized, as 
                defined in section 38;
                    ``(C) when the institution was most recently 
                examined, it was found to be well managed, had solid 
                earnings, had been profitable for the previous 2 years, 
                and its composite condition was found to be good;
                    ``(D) the insured depository institution is not 
                currently subject to a formal enforcement order by the 
                appropriate Federal banking agency; and
                    ``(E) no person acquired control of the institution 
                during the 12-month period in which a full-scope, on-
                site examination would be required but for this 
                paragraph.
    ``The dollar amount in the preceding sentence shall be adjusted 
annually after December 31, 1992, by the annual percentage increase in 
the Consumer Price Index for Urban Wage Earners and Clerical Workers 
published by the Bureau of Labor Statistics.''.
            (2) State examinations.--In subsection (d), delete 
        paragraph (3) and insert the following new paragraph:
            ``(3) State examinations acceptable.--The examination 
        requirement established under paragraph (1) may be satisfied by 
        an examination of the insured depository institution conducted 
        by the state during the 12-month period if the appropriate 
        Federal banking agency determines that the state examination 
        carries out the purposes of this subsection.''.
            (3) Certain depository institutions within holding 
        companies.--At the end of subsection (d), add the following new 
        paragraph:
            ``(7) Certain institutions within depository institution 
        holding companies.--The appropriate Federal banking agency may 
        exempt any insured depository institution owned or controlled 
        by a depository institution owned or controlled by a depository 
        institution holding company from the requirements of this 
        subsection where--
                    ``(A) the agency is satisfied, after reviewing the 
                holding company's internal controls and examination 
                procedures, that adequate controls and procedures exist 
                within the holding company structure; or
                    ``(B) the insured depository institutions owned or 
                controlled by the depository institution holding 
                company which hold a substantial majority of the total 
                assets of all insured depository institution assets 
                owned or controlled by the depository institution 
                holding company have been examined pursuant to the 
                requirements of this subsection.''.

SEC. 302. COORDINATED EXAMINATIONS.

    (a) Coordinated State and Federal Examinations.--Section 10(d) of 
the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) (as amended by 
section 301 of this Act) is amended by inserting after paragraph (7) 
the following new paragraph:
            ``(8) Coordinated examinations.--Each appropriate Federal 
        banking agency shall, to the extent practicable--
                    ``(A) coordinate all examinations to be conducted 
                by that agency at an insured depository institution; 
                and
                    ``(B) work with other appropriate Federal banking 
                agencies and appropriate State bank supervisors to 
                coordinate examinations to be conducted at an insured 
                depository institution.
so as to minimize the disruptive effects of such examinations on 
institution operations.''.
    (b) Technical and Conforming Amendment.--Section 3(r) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813 (r)) is amended to read 
as follows:
    ``(r) Appropriate State Bank Supervisor.--The term `appropriate 
State bank supervisor' means any officer, agency, or other entity of 
any state which has primary regulatory authority over State banks or 
State savings associations in such State.''.

SEC. 303. DIFFERENCES IN ACCOUNTING PRINCIPLES.

    Section 37(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(a)(2)) (as added by section 121 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended by adding the following 
new subparagraph (C)--
                    ``(C) Minimize differences.--Notwithstanding 
                subparagraph (B), each appropriate Federal banking 
                agency and the Corporation shall require insured 
                depository institutions to use accounting principles 
                consistent with generally accepted accounting 
                principles to the extent practicable so as to minimize 
                differences between statements and reports, and thereby 
                reduce the compliance burdens and costs on insured 
                depository institutions.''.

SEC. 304. REDUCTION OF CALL REPORT BURDENS.

    (a) Regulatory Review of Call Report Burdens.--
            (1) In general.--Within 60 days after the date of enactment 
        of this Act, each appropriate Federal banking agency shall 
        review the regulatory burden and costs incurred by insured 
        depository institutions during their preparation of reports of 
        condition.
            (2) Factors to be considered.--In conducting its review, 
        each agency shall consider all relevant factors that it deems 
        necessary to correctly determine the extent of the burden and 
        costs, including--
                    (A) the actual dollar cost to financial 
                institutions in preparing such reports;
                    (B) the time and resources expended to meet 
                regulatory directives;
                    (C) the frequency in which the agency has modified 
                the type(s) of information required to be reported in 
                such reports and the costs and burdens associated with 
                complying with such modifications; and
                    (D) the extent to which such costs and burdens, 
                viewed within the overall context of the total 
                regulatory burden and cost incurred by insured 
                depository institutions in their day-to-day operations, 
                impact upon the availability of credit.
            (3) Corrective measures.--After conducting its review, each 
        appropriate Federal banking agency shall revise its call report 
        requirements to remove any unnecessary burdens and costs. Prior 
        to any subsequent modification in call report requirements, 
        each agency shall consider the extent to which such 
        modifications impose unnecessary regulatory burdens and costs 
        upon insured depository institutions.
            (4) Definitions.--For purposes of this section, the terms 
        ``insured depository institution'' and ``appropriate Federal 
        banking agency'' have the same meanings as in section 3 of the 
        Federal Deposit Insurance Act.
    (b) Repeal of Publication Requirements.--
            (1) The 5th sentence of section 5211(a) of the Revised 
        Statutes (12 U.S.C. 161(a)) is amended by striking ''; and the 
        statement of resources and liabilities in the same form in 
        which it is made to the Comptroller shall be published in a 
        newspaper'' and all that follows through the period and 
        inserting a period.
            (2) Section 5211(c) of the Revised Statutes (12 U.S.C. 
        161(c) is amended by striking the 4th sentence.
            (3) Section 7(a)(1) of the Federal Deposit Insurance Act is 
        amended by striking the 4th sentence.
            (4) The last sentence of the 6th undesignated paragraph of 
        section 9 of the Federal Reserve Act (12 U.S.C. 324) is amended 
        by striking ``and shall be published'' and all that follows 
        through the end of the sentence and inserting a period.
    (c) Amendment Relating to National Banks.--Section 5211(a) of the 
Revised Statutes (12 U.S.C. 161(a)) is amended by adding at the end the 
following sentence: ``Any change in the form of report of condition 
made under this subsection shall be effective only once in a particular 
calendar year, and only after at least 6 months from the date that 
notice of the change is published in the Federal Register, except that 
such change may be effective on a subsequent date or after less notice 
if the Comptroller makes a specific finding that an additional change 
in the form or a shorter advance-notice period is necessary because of 
an emergency or change in Federal law.''.
    (d) Amendment Relating to State Nonmember Insured Banks.--Section 
7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)) is 
amended by adding at the end the following new paragraph:
            ``(10) Transition period for changes in report 
        requirements.--Any change in the form of reports of condition 
        made under this subsection shall be effective only once in a 
        particular calendar year, and only after at least 6 months from 
        the date that notice of the change is published in the Federal 
        Register, except that such a change may be effective on a 
        subsequent date or after less notice if the Board of Directors 
        makes a specific finding that an additional change in the form 
        or a shorter advance-notice period is necessary because of an 
        emergency or change in Federal law.''.
    (e) Amendment Relating to State Member Banks.--The 6th undesignated 
paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 324) is 
amended by adding at the end the following sentence: ``Any change in 
the form of report of condition made under this subsection shall be 
effective only once in a particular calendar year, and only after at 
least 6 months from the date that notice of the change is published in 
the Federal Register, except that such a change may be effective on a 
subsequent date or after less notice if the Board of Governors of the 
Federal Reserve System makes a specific finding that an additional 
change in the form or a shorter advance-notice period is necessary 
because of an emergency or change in Federal law.''.
    (f) Amendment Relating to Savings Association.--Section 5(v) of the 
Home Owners' Loan Act (12 U.S.C. 1464(v) is amended by adding at the 
end the following new paragraph:
            ``(9) Transition period for changes in report 
        requirements.--Any change in the form of reports of condition 
        made under this subsection shall be effective only once in a 
        particular calendar year, and only after at least 6 months from 
        the date that notice of the change is published in the Federal 
        Register, except that such a change may be effective on a 
        subsequent date or after less notice if the Director makes a 
        specific finding that an additional change in the form or a 
        shorter advance-notice period is necessary because of an 
        emergency or change in Federal law.''.
    (g) Amendment Relating to Credit Unions.--Section 202(a)(1) of the 
Federal Credit Union Act (12 U.S.C. 1782(a)(1)) is amended by adding at 
the end the following sentence: ``Any change in the form of reports of 
condition made under this subsection shall be effective only once in a 
particular calendar year, and only after at least 6 months from the 
date that notice of the change is published in the Federal Register, 
except that such a change may be effective on a subsequent date or 
after less notice if the Board makes a specific finding that an 
additional change in the form or a shorter advance-notice period is 
necessary because of an emergency or change in Federal law.''.

SEC. 305. REGULATORY REVIEW OF CAPITAL COMPLIANCE BURDEN.

    Not later than 180 days after the date of enactment of this Act, 
the Federal Financial Institutions Examination Council, in consultation 
with insured depository institutions and other interested parties, 
shall--
    (a) review the extent to which current compliance requirements 
associated with risk-based capital rules have an unnecessarily costly 
and burdensome effect on community banks; and
    (b) where appropriate, reduce such costs and burdens.
    For purposes of this section, the term ``insured depository 
institution'' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act.

SEC. 306. BRANCH CLOSURES.

    Section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831p) 
(as added by section 228 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended by adding at the end the following 
new subsections:
    ``(d) Definitions.--For purposes of this section, the term 
``branch'' shall not include:
            ``(1) automated teller machines;
            ``(2) a branch acquired through merger, consolidation, 
        purchase, assumption or other method that is located in a local 
        market area currently served by another branch of the acquiring 
        institution;
            ``(3) a branch that is closed and reopened in another 
        location within the same local market area which would continue 
        to provide banking services to substantially all of the 
        customers currently served by the branch that is closed;
            ``(4) a branch that is closed in connection with--
                    ``(A) an emergency acquisition under--
                            ``(i) section 11(n); or
                            ``(ii) subsections (f) or (k) of section 
                        13; or
                    ``(B) any assistance provided by the Corporation 
                under section 13(c); and
            ``(5) 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. The appropriate 
        Federal banking agency shall, by regulation, determine the 
        circumstances under which such exemptions will be granted.
    ``(e) Effective Date.--The amendments made by this section shall 
become effective on the date of enactment of the Federal Deposit 
Insurance Corporation Improvement Act of 1991.''.

SEC. 307. BANK SECRECY ACT AMENDMENTS.

    (a) Staff Commentaries.--Title 31 of the United States Code is 
amended to add the following new section 5327:

``SEC. 5327. STAFF COMMENTARIES.

    ``The Secretary of the Treasury shall review all regulations 
promulgated under this title on an annual basis and seek comment from 
the public pursuant to this review. The Secretary shall publish all 
written rulings interpreting this title, as well as a staff commentary 
to the regulations issued under this title. This commentary shall be 
issued on an annual basis.''.
    (b) Log Requirements.--Section 5325(a)(1) of title 31 of the United 
States Code is amended--
            (1) by striking subparagraphs (A) and (B); and
            (2) by inserting the following new paragraph (1):
            ``(1) the individual has a transaction account with such 
        financial institution and the financial institution verifies 
        that fact through a signature card or other information 
        maintained by such institution in connection with the account 
        of such individual.''.
    (c) Exemption Process.--Section 5318(a)(5) of title 31 of the 
United States Code is amended--
            (1) by inserting ``or exception'' after ``an appropriate 
        exemption''; and
            (2) by inserting ``only after receiving comments from the 
        entities covered by this chapter. The Secretary must take into 
        account the effect that changes to the exemption or exception 
        process will have on the cost and efficiency of the reporting 
        process.'' after the words ``under this subchapter''.
    (d) Customer Filings.--Section 5313(a) of title 31 of the United 
States Code is amended by striking ``, the institution and any other 
participant in the transaction the Secretary may prescribe shall file a 
report'' and inserting ``the person who participates in the transaction 
shall file a report''.
    (e) Inflation Adjustments on CTR Amounts.--Section 5313(a) of title 
31 of the United States Code is amended by inserting after the second 
sentence the following new sentence: ``The Secretary must review the 
reporting requirements mentioned above by September 1 of each calendar 
year to determine if the reporting amount prescribed by the Secretary 
should be adjusted to account for inflation, cost effectiveness of the 
requirement or the usefulness for law enforcement purposes. The 
Secretary must submit a written report to the Congress each year 
disclosing how the reporting threshold decision was reached. The report 
must include an analysis of how the change will affect domestic 
financial institutions.''.

SEC. 308. CLARIFYING AMENDMENTS.

    (a) Data Collections.--Section 7(a)(8) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(a)(8)) (as amended by Section 141(c) of 
the Federal Deposit Insurance Corporation Improvement Act of 1991) is 
amended to add at the end the following new sentence: ``In prescribing 
reporting and other requirements pursuant to this paragraph, the 
Corporation shall minimize the regulatory burden imposed upon insured 
depository institutions.'';

SEC. 309. LIMITING POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

    (a) Amendment to the Federal Reserve Act.--Section 25 of the 
Federal Reserve Act (12 U.S.C. 601 et seq.) is amended by adding at the 
end the following:
            ``(11) Limitations on liability.--A member bank shall not 
        be required to repay any deposit made at a foreign branch of 
        the bank if the branch cannot repay the deposit due to--
                    ``(i) an act of war, insurrection or civil strife, 
                or
                    ``(ii) an action by a foreign government or 
                instrumentality (whether de jure or de facto) in the 
                country in which the branch is located,
        unless the member bank has expressly agreed in writing to repay 
        the deposit under those circumstances. The Board is authorized 
        to prescribe such regulations as it deems necessary to 
        implement this paragraph.''.
    (b) Amendments to the Federal Deposit Insurance Act.--
            (1) Section 18 of the Federal Deposit Insurance Act (12 
        U.S.C. 1828) is amended by adding at the end the following:
    ``(  ) Sovereign Risk.--(1) Section 25(11) of the Federal Reserve 
Act shall apply to every nonmember insured bank in the same manner and 
to the same extent as if the nonmember insured bank were a member 
bank.''.
            (2) Conforming amendment.--Subparagraph (A) of Section 
        3(1)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(l)(5)) is amended to read as follows:
                    ``(A) any obligation of a depository institution 
                which is carried on the books and records of an office 
                of such bank or savings association located outside of 
                any State unless--
                            ``(i) such obligation would be a deposit if 
                        it were carried on the books and records of the 
                        depository institution, and payable at, an 
                        office located in any State; and
                            ``(ii) the contract evidencing the 
                        obligation provides by express terms, and not 
                        by implication, for payment at an office of the 
                        depository institution located in any State; 
                        and''.
    (c) Existing Claims Not Affected.--The amendments made by this 
section shall not be construed to affect any claim arising from events 
(described in section 25(11) of the Federal Reserve Act, as added by 
subsection (a)) that occurred before the date of enactment of this 
section.

SEC. 310. REPEAL OUT-DATED STATUTORY PROVISION.

    Section 5204 of the Revised Statutes (12 U.S.C. 56) is amended--
            (1) in the second sentence, by striking ``deducting 
        therefrom its losses and bad debts'' and inserting ``subject to 
        other provisions of law''; and
            (2) by striking the third sentence.

                Subtitle B--Holding Company Efficiencies

SEC. 321. EXPEDITED PROCEDURES FOR FORMING A BANK HOLDING COMPANY.

    Section 3(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1842(a)) is amended--
            (1) by striking out ``or (B)'' and inserting in lieu 
        thereof ``(B),''; and
            (2) by inserting before the period at the end of the second 
        sentence the following: ``, or (C) with 30 days prior 
        notification to the Board, the acquisition by a company of 
        control of a bank in a reorganization in which a person or 
        group of persons exchange their shares of the bank for shares 
        of a newly formed bank holding company and receive, after the 
        reorganization, substantially the same proportional share 
        interest in the holding company as they held in the bank except 
        for changes in shareholders' interests resulting from the 
        exercise of dissenting shareholders' rights under State or 
        Federal law if, immediately following the acquisition, the bank 
        holding company meets the capital and other financial standards 
        prescribed by the Board by regulation for such a bank holding 
        company and the holding company does not engage in any 
        activities other than those of banking or managing and 
        controlling banks. In promulgating regulations pursuant to this 
        subsection, the Board shall not require more capital for the 
        subsidiary bank immediately following the reorganization than 
        is required for a similarly sized bank that is not a subsidiary 
        of a bank holding company.''.

SEC. 322. EXEMPTION OF CERTAIN HOLDING COMPANY FORMATIONS FROM 
              REGISTRATION UNDER THE SECURITIES ACT OF 1933.

    Section 4 of the Securities Act of 1933 (15 U.S.C. 77d) is amended 
by adding at the end thereof the following new paragraph:
            ``(7) transactions involving offers or sales of equity 
        securities, in connection with the acquisition of a bank by a 
        company under section 3(a) of the Bank Holding Company Act of 
        1956 (12 U.S.C. 1842(A)), if the acquisition occurs solely as 
        part of a reorganization in which a person or group of persons 
        exchange their shares of a bank for shares of a newly formed 
        bank holding company and receive, after that reorganization, 
        substantially the same proportional share interests in the bank 
        holding company as they held in the bank, except for changes in 
        shareholders' interests resulting from the exercise of 
        dissenting shareholders' rights under State or Federal law.''.

SEC. 323. EXPEDITED PROCEDURES FOR BANK HOLDING COMPANIES TO SEEK 
              APPROVAL TO ENGAGE IN NONBANKING ACTIVITIES.

    Paragraph (8) of section 4(c) for the Bank Holding Company Act of 
1956 (12 U.S.C. 1843(c)) is amended--
            (1) by redesignating clauses (i) and (ii) of subparagraphs 
        (C), (D), and (E) as subclauses (I) and (II), respectively;
            (2) by redesignating subparagraphs (A) through (G), and any 
        cross references thereto as clauses (i) through (vii), 
        respectively; and
            (3) by striking out all that precedes ``purposes of this 
        subsection it is not'' and inserting in lieu thereof the 
        following:
            ``(8)(A) Activities closely related to banking.--In 
        accordance with the limitations and requirements contained in 
        subparagraphs (B) and (C) of this paragraph, shares of any 
        company whose activities the Board has determined (by order or 
        regulation) to be so closely related to banking or managing or 
        controlling banks as to be a proper incident thereto.
                    ``(B) Notice requirements.
                            ``(i) No bank holding company shall engage 
                        in any activity or acquire the shares of a 
                        company pursuant to this paragraph, either de 
                        novo or by an acquisition in whole or in part 
                        of a going concern, unless the Board has been 
                        given sixty days prior written notice of that 
                        proposal and, within that period, the Board has 
                        not issued an order--
                                    ``(I) disapproved the proposal, or
                                    ``(II) extending the time period in 
                                accordance with clause (iii) below.
                            ``(ii)(I) An acquisition may be made prior 
                        to the expiration of the disapproval period if 
                        the Board issues a written statement of its 
                        intent not to disapprove the proposal.
                                    ``(II) The Board shall publish in 
                                the Federal Register notice of receipt 
                                of a notice under this paragraph 
                                involving insurance or any other 
                                nonbanking activity not previously 
                                determined by the Board (by order or 
                                regulation) to be closely related to 
                                banking, and provide a reasonable 
                                period for public comment. The Board 
                                shall issue an order involving any such 
                                notice prior to the commencement of the 
                                proposed insurance or new activity.
                                    ``(III) No notice under this 
                                paragraph is required for a bank 
                                holding company to establish de novo an 
                                office to engage in any activity 
                                previously authorized for that bank 
                                holding company under this paragraph or 
                                to change location of an office engaged 
                                in that activity.
                            ``(iii) The notice submitted to the Board 
                        shall contain such information as the Board 
                        shall prescribe by regulation or by specific 
                        request in connection with a particular notice, 
                        except that the Board may require only such 
                        information as may be relevant to the nature 
                        and scope of the proposed activity and to the 
                        Board's evaluation of the notice under the 
                        criteria specified in clause (iv). If the Board 
                        requires additional relevant information beyond 
                        that provided in the notice, the Board may by 
                        order extend the time period provided in clause 
                        (i) of this subparagraph until it has received 
                        that information, and the activity that is the 
                        subject of the notice may be commenced within 
                        sixty days of the date of that receipt unless 
                        the Board issues a disapproval order as 
                        provided in clause (i). Such an extension order 
                        is reviewable under section 9 of this Act.
                            ``(iv) In determining whether to disapprove 
                        a notice under this paragraph, the Board shall 
                        consider whether the performance of the 
                        activity described in the notice by a bank 
                        holding company or subsidiary thereof can 
                        reasonably be expected to produce benefits to 
                        the public, such as greater convenience, 
                        increased competition, or gains in efficiency, 
                        that outweigh possible adverse effects, such as 
                        undue concentration of resources, decreased or 
                        unfair competition, conflicts or interests, or 
                        unsound banking practices. In orders and 
                        regulations under this paragraph, the Board may 
                        differentiate between activities commenced de 
                        novo and activities commenced by the 
                        acquisition, in whole or in part, of a going 
                        concern.
    ``(c) The Board shall by order set forth the reasons for any 
disapproval or determination not to disapprove a notice under this 
paragraph.
                    ``(C) Insurance activities not closely related to 
                banking.--For''.

SEC. 324. REDUCTION OF POST-APPROVAL WAITING PERIOD FOR BANK HOLDING 
              COMPANY ACQUISITIONS.

    Section 11(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1849(b)(1)) is amended by adding before the period at the end of the 
fourth sentence thereof the following: ``or if no adverse comment has 
been received regarding section 4(c)(8(C) or section 4(j) of this act, 
such shorter period of time as may be prescribed by the Board with the 
concurrence of the Attorney General, but in no event less than five 
days.''.

SEC. 325. REDUCTION OF POST-APPROVAL WAITING PERIOD FOR BANK MERGERS.

    Section 18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)(6)) is amended by inserting before the period at the end of the 
last sentence thereof the following: ``or such shorter period of time 
as may be prescribed by the agency with the concurrence of the Attorney 
General, but in no event less than five days.''.

     TITLE IV--CONSUMER INCONVENIENCE, PAPERWORK, AND COST; OTHER 
                         NONSUPERVISORY REFORMS

     Subtitle A--Consumer Benefits and Lending Process Improvements

SEC. 401. STREAMLINED LENDING PROCESS FOR CONSUMER BENEFIT.

    (a) Federal Reserve Study.--Within 12 months of enactment of this 
Act, the Board of Governors of the Federal Reserve System, in 
consultation with the Department of Housing and Urban Development, 
shall conduct a study and report to Congress on ways to streamline the 
credit-granting process.
    (b) Focus.--In carrying out subsection (a), the Board shall--
            (1) identify ways to streamline the home mortgage, small 
        business and consumer lending processes so as to--
                    (A) reduce consumer inconvenience, cost and time 
                delays; and
                    (B) minimize cost and burdens on insured depository 
                institutions and credit unions;
            (2) take such regulatory action, as appropriate, to meet 
        the objectives of paragraph (1); and
            (3) provide Congress with legislative recommendations on 
        changes necessary to carry out the purposes of this section.
    (c) Comment.--In carrying out the objectives of this section, the 
Board shall solicit comments from other Federal banking agencies, 
consumer groups, insured depository institutions, credit unions, and 
other interested parties.
    (d) Definition.--For purposes of this section, the term ``insured 
depository institution'' has the same meaning as in section 3 of the 
Federal Deposit Insurance Act.

SEC. 402. EXEMPTION FOR CERTAIN BORROWERS.

    Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended 
by adding at the end the following:
            ``(7) Credit transactions involving consumers who earn more 
        than $200,000 annually or have net assets in excess of 
        $1,000,000 at the time of such transaction.''.

SEC. 403. MODIFICATION OF WAIVER OF RIGHT OF RESCISSION.

    Section 125(d) of the Truth in Lending Act (15 U.S.C. 1635(d)) is 
amended by striking ``, if it finds that such action is necessary in 
order to permit homeowners to meet bona fide personal financial 
emergencies,''.

SEC. 404. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES

    (a) 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) In section 128(a) of the Truth in Lending Act (15 U.S.C. 
1638(a), insert at the end the following new paragraph (14):
            ``(14) In any variable rate residential mortgage 
        transaction, at the creditors' option, a statement that the 
        monthly payment may increase or decrease substantially, or an 
        historical example illustrating the effects of interest rate 
        changes implemented according to the loan program.''.

SEC. 405. EXEMPTION FOR BUSINESS ACCOUNTS.

    Section 274 of the Truth in Savings Act (15 U.S.C. 4313) is amended 
by striking subsection (1) and inserting the following in its place:
            ``(1) The term `account' means any account intended for use 
        by and generally used by consumers primarily for personal, 
        family, or household purposes by a depository institution into 
        which a customer deposits funds, including demand accounts, 
        time accounts, negotiable order of withdrawal accounts, and 
        share draft accounts.''.

SEC. 406. ELIMINATION OF DUPLICATE DISCLOSURES FOR HOME EQUITY LOANS.

    Section 4 of the Real Estate Settlement Procedures Act (12 U.S.C. 
2603) is amended by inserting in subsection (a) after the first 
sentence: ``except that for federally related mortgage loans secured by 
a subordinate lien on residential property subject to section 127A(a) 
of the Truth in Lending Act (15 U.S.C. 1637a(a)), the disclosures of 
section 127A(a) of the Truth in Lending Act (15 U.S.C. 1637a(a)) may be 
used in place of the standard real estate settlement form.''

               Subtitle B--Other Non-Supervisory Reforms

     Part 1--Expedited Funds Availability and Electronic Transfers

SEC. 411. AVAILABILITY SCHEDULES.

    (a) Treasury Checks.--Section 603(a)(2)(A) of the Expedited Funds 
Availability Act (12 U.S.C. 4002(a)(2)(A)) is amended--
            (1) by redesignating clauses (i) and (ii) as clauses (ii) 
        and (iii), respectively; and
            (2) by inserting before clause (ii), as redesignated, the 
        following:
                    ``(i) is deposited in a receiving depository 
                institution which is staffed by individuals employed by 
                such institutions;''
    (b) On-US Items.--Section 603(a)(2)(E) of the Expedited 
Availability Act (12 U.S.C. 4002(a)(2)(E)) is amended by inserting ``is 
staffed by individuals employed by such institutions'' after ``branch 
of a depository institution''.
    (c) Local Checks.--Section 603(b)(1) of the Expedited Funds 
Availability Act (12 U.S.C. 4002(b)(1)) is amended by striking ``one 
business day'' and inserting ``two business days''.

SEC. 412. DEFINITION OF A NEW ACCOUNT.

    Section 604(a) of Expedited Funds Availability Act (12 U.S.C. 
4003(a)) is amended by striking ``thirty-day period'' and inserting 
``ninety-day period''.

SEC. 413. JURISDICTION.

    Section 611(f) of the Expedited Funds Availability Act (12 U.S.C. 
4010(f)) is amended in the first sentence by inserting ``or other 
entities participating in the payments system, including States and 
political subdivisions thereof on which checks are drawn.'' after 
``depository institutions''.

SEC. 414. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.

    Section 909(a)(1) of Electronic Fund Transfer Act (15 U.S.C. 
1693g(a)(1)) is amended by inserting ``(or in cases where the 
cardholder has substantially contributed to the unauthorized use, 
including writing on or keeping with the card or other means of access 
a personal identification or other security code, $500)'' after 
``$50''.

             Part 2--Amendments to the Truth In Lending Act

SEC. 421. LIABILITY FOR UNAUTHORIZED USE OF CREDIT CARDS.

    Section 133(a) of the Truth in Lending Act (15 U.S.C. 1643(a)) is 
amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
            ``(2)(A) Notwithstanding paragraph (1), a cardholder shall 
        be liable for the unauthorized use of a credit card if--
                    ``(i) the liability is in excess of $50; and
                    ``(ii) the cardholder fails to notify the card 
                issuer of any unauthorized transaction which appears on 
                the statement of the cardholder's account in connection 
                with an extension of consumer credit within 60 days of 
                the receipt of such statement.
            ``(B) The liability described in subparagraph (A) shall not 
        apply if the cardholder demonstrates that the failure to timely 
        notify the card issuer of the unauthorized use was due to 
        extenuating circumstances such as extended travel or 
        hospitalization, and notice was provided at the earliest 
        possible time thereafter.
            ``(C) the liability described in subparagraph (A) shall 
        only apply where the card issuer has provided prior notice to 
        the cardholder of such liability.''.

                    Part 3--Homeownership Amendments

SEC. 431. HOME MORTGAGE DISCLOSURE ACT EXEMPTION.

    The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et. seq.) 
is amended in section 309 (12 U.S.C. 2808) by inserting at the end the 
following new sentence: ``The amount of total assets in the preceding 
sentence shall be adjusted yearly on January 1 by the annual percentage 
change in the Consumer Price Index reported for the previous June 1.''.

SEC. 432. HOMEOWNERSHIP DEBT COUNSELING NOTIFICATION.

    Section 106(c)(5) of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x(c)(5)) is amended:
    (a) by inserting at the end the following new subparagraph (F):
                    ``(F) Affect on foreclosure proceedings.-- Failure 
                of a creditor to comply with the requirements of this 
                subsection shall in no way affect foreclosure 
                proceedings under state law.''; and
    (b) in subparagraph (B),--
            (1) by inserting ``(i)'' before ``The notification 
        required'' and by renumbering clauses (i) and (ii) as 
        subclauses (I) and (II), respectively;
            (2) by inserting the following new clause (ii)--
                            ``(ii) Creditors shall not be required to 
                        provide the notification required under 
                        subparagraph (A) more than once annually.''.

SEC. 433. ELIMINATION OF DUPLICATIVE DATA COLLECTION.

    Effective 6 months after the date of enactment of this Act, no 
Federal banking agency shall require any institution for which it is 
the appropriate Federal banking agency (as defined in section 3(q) of 
the Federal Deposit Insurance Act) to prepare, file, or maintain any 
form for the purpose of collection, analysis, or maintenance of 
appropriate data to further the purposes of, or to fulfill the 
requirements of, the Fair Housing Act, other than a form for data 
collection, analysis, or maintenance required under the Home Mortgage 
Disclosure Act of 1975.

    Part 4--Amendments to the Real Estate Settlements Procedures Act

SEC. 411. CLARIFY DISCLOSURE REQUIREMENTS.

    Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605) is amended--
            (a) in subsection (a)(1)(B)--
                    (1) by inserting ``at the choice of the person 
                making a federally related mortgage loan--(i)'' after 
                ``(B)'';
                    (2) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and by striking 
                ``and'' at the end of newly redesignated subclause (II) 
                and inserting ``or''; and
                    (3) by inserting the following new clause (ii):
                            ``(ii) a statement that the person making 
                        the loan has previously assigned, sold, or 
                        transferred the servicing of federally related 
                        mortgage loans; and''.
            (b) in subsection (a)(2), by inserting at the end the 
        following new sentence: ``Notwithstanding the previous 
        sentences of this paragraph, the Secretary shall also permit 
        any person originating the loan, at the choice of such person, 
        to provide instead of the percentage estimates required to be 
        disclosed under this paragraph a statement that the servicing 
        may be assigned, sold or transferred during the twelve-month 
        period beginning upon origination.''.

SEC. 442. EXEMPTION OF BUSINESS LOANS.

    The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601) 
is amended:
            (1) by redesignating sections 4 (as amended by Section 406 
        of this Act) through 19 as sections 5 through 20, respectively; 
        and
            (2) by inserting the following new section 4:
    ``Sec. 4. Exempted Transactions.--This title does not apply to the 
following:
            ``(1) Credit transactions involving extensions of credit 
        primarily for business, commercial, or agricultural purposes, 
        or to government or governmental agencies or instrumentalities, 
        or to organizations; or
            ``(2) Credit transactions to finance or refinance 
        agricultural property (such as farms, ranches, aquaculture, or 
        vineyards) constituting 25 or more acres regardless of whether 
        the loan in part involves a lien including residential 
        property.''.

                     TITLE V--COMMUNITY INVESTMENT

SEC. 501. COMMUNITY REINVESTMENT ACT AMENDMENTS.

    (a) Compliance Burdens.--Section 804 of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2903) is amended--
            (1) in paragraph (1), by striking ``; and'' and inserting 
        ``;'';
            (2) in paragraph (2), by striking ``.'' and inserting ``; 
        and''; and
            (3) by adding at the end the following new paragraph (3):
            ``(3) minimize the regulatory paperwork burdens and costs 
        associated with compliance with this Act, giving appropriate 
        consideration and recognition to such factors as the nature and 
        scope of the institution's business, its location and area of 
        service, and such other factors as may be appropriate.''.
    (b) Safe Harbor.--The Community Reinvestment Act of 1977 (12 U.S.C. 
2901 et seq.) is hereby amended by adding the following new section:
    ``Sec. 809. Safe Harbor.--Notwithstanding section 804(2), an 
application for a deposit facility by--
            ``(a) a regulated financial institution shall not be denied 
        on the basis of such institution's compliance with this Act if 
        such institution received a rating in its last evaluation under 
        Section 804 of `Outstanding' in its record of meeting community 
        credit needs, as provided in Section 807(b); or
            ``(b) a depository institution holding company, as defined 
        in section 3(w) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(w)), shall not be denied if--
                    ``(1) regulated financial institution subsidiaries 
                representing, in the aggregate, two-thirds of the 
                holding company's regulated financial institution 
                assets received a rating in their last evaluation under 
                section 804 of `Outstanding'; and
                    ``(2) the remaining regulated financial institution 
                subsidiaries received a rating in their last evaluation 
                under section 804 of at least `Satisfactory'.''.
    (c) Increased Incentives To Lending to Low- and Moderate-Income 
Communities.--Section 804 of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903) (as amended by section 501(a) of this Act) is amended--
            (1) in paragraph (2), by striking ``; and'' and inserting 
        ``;'';
            (2) in paragraph (3), by striking ``.'' and inserting ``; 
        and''; and
            (3) by adding at the end the following new paragraph (4):
                    ``(4) provide the institution with credit, for 
                purposes of satisfying the requirements of this Act, 
                for investments in, and loans to,--
                    ``(A) minority depository institutions and women's 
                depository institutions (as defined in section 808(b)); 
                and
                    ``(B) joint ventures or other entities or projects 
                which provide benefits to distressed communities, as 
                such term is defined by the appropriate Federal 
                financial supervisory agency,
``whether those minority or women's depository institutions, or those 
communities, are located within or outside of the service area of the 
regulated financial institution.''.
    (d) Special Purpose Banks.--The Community Reinvestment Act of 1977 
(12 U.S.C. 2901 et seq.) is hereby amended--
            (1) in Section 803 (12 U.S.C. 2902), by inserting the 
        following new paragraph (5):
            ``(5) the term ``special purpose banks'' means a bank that 
        does not generally accept retail deposits, such as credit card 
        banks and trust banks.''; and
            (2) in Section 804 (12 U.S.C. 2903) (as amended by sections 
        501(a) and 501(c) of this Act)--
                    (A) by inserting ``(a)'' before ``In connection 
                with'';
                    (B) by inserting at the end the following new 
                subsection (b):
    ``(b) In conducting assessments pursuant to subsection (a) at 
special purpose banks, each appropriate Federal financial supervisory 
agency shall take into consideration the nature of business such banks 
are involved in and develop standards under which such banks may be 
deemed to have complied with the requirements of this Act which are 
consistent with the specific nature of such businesses.''.
    (e) State Exams.--The Community Reinvestment Act of 1977 (12 U.S.C. 
2901 et seq.) is hereby amended by adding after section 809 (as added 
by section 501(b)) the following new section:
    ``Sec. 810. State Exams.--The appropriate Federal financial 
supervisory agency may accept examinations conducted by State 
supervisory agencies pursuant to comparable State community 
reinvestment laws in order to satisfy the requirements of this Act.''.

                                 <all>

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