II

103D CONGRESS

1ST SESSION S. 1124

To enhance credit availability by streamlining Federal regulations applicable

to financial institutions, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 17 (legislative day, JUNE 15), 1993

Mr. D’AMATO (for himself, Mr. BOND, Mr. SHELBY, Mr. BENNETT, Mr. DOMENICI, and Mr. MACK) introduced the following bill; which was read

twice and referred to the Committee on Banking, Housing, and Urban

Affairs

A BILL

To enhance credit availability by streamlining Federal regulations applicable to financial institutions, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Depository Institutions Regulatory Improvements Act of

6 1993’’.

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

8 this Act is as follows:

Sec. 1. Short title; table of contents.
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Sec. 2. Incorporated definitions.

TITLE I—REGULATORY IMPROVEMENTS

Subtitle A—Reduction of Regulatory Burdens

Sec. 101. Regulation of real estate lending.

Sec. 102. Real estate appraisal amendment.

Sec. 103. Public deposits.

Sec. 104. Transition periods for new regulations.

Sec. 105. Annual examinations.

Sec. 106. Coordinated examinations.

Sec. 107. Reduction of reports of condition burdens.

Sec. 108. Branch closures.

Sec. 109. Bank Secrecy Act.

Sec. 110. Minimizing regulatory burdens.

Sec. 111. Repeal of outdated statutory provision.

Sec. 112. Elimination of duplicative disclosures for home equity loans.

Sec. 113. Unauthorized electronic fund transfers.

Sec. 114. Homeownership debt counseling notification.

Sec. 115. Clarification of disclosure requirements.

Sec. 116. Exemption of business loans.

Sec. 117. Effective date for inter-affiliate transactions.

Subtitle B—Studies and Reports

Sec. 151. Report on capital standards and their impact on the economy.

Sec. 152. Sterile reserves studies.

Sec. 153. Paperwork reduction review.

Sec. 154. Regulatory review of capital compliance burden.

Sec. 155. Streamlined lending process for consumer benefit.

TITLE II—ENHANCED CREDIT AVAILABILITY AND DEPOSIT

INSURANCE PROTECTION

Sec. 201. Enhanced credit availability and deposit insurance protection.

TITLE III—TECHNICAL AND CONFORMING AMENDMENTS

Sec. 301. Transferred deposits.

Sec. 302. Technical amendment.

Sec. 303. Certified statements.

Sec. 304. Cross reference correction.

Sec. 305. Court costs; bonds; filing fees.

Sec. 306. Deletion of obsolete provision.

Sec. 307. Federal Reserve Act amendment.

Sec. 308. Annual report of Appraisal Subcommittee.

Sec. 309. Insurance of bridge banks.

Sec. 310. Additional technical amendments to the Federal banking and housing

laws.

1 SEC. 2. INCORPORATED DEFINITIONS.

2 Unless otherwise specifically provided in title I of this

3 Act, for purposes of title I of this Act—
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1 (1) the terms ‘‘appropriate Federal banking

2 agency’’, ‘‘Federal banking agencies’’, and ‘‘insured

3 depository institution’’ have the same meanings as

4 in section 3 of the Federal Deposit Insurance Act;

5 and

6 (2) the term ‘‘insured credit union’’ has the

7 same meaning as in section 101 of the Federal

8 Credit Union Act.

9 TITLE I—REGULATORY

10 IMPROVEMENTS

11 Subtitle A—Reduction of

12 Regulatory Burdens

13 SEC. 101. REGULATION OF REAL ESTATE LENDING.

14 Section 18(o) of the Federal Deposit Insurance Act

15 (12 U.S.C. 1828(o)) is amended—

16 (1) by redesignating paragraph (4) as para17 graph (5); and

18 (2) by inserting after paragraph (3) the follow19 ing new paragraph:

20 ‘‘(4) CONSIDERATION OF PARTICULAR IM21 PACT.—In prescribing standards under paragraph

22 (1), each appropriate Federal banking agency

23 shall—

24 ‘‘(A) consider the impact that such stand25 ards have on the availability of credit for small
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1 business, residential, and agricultural purposes,

2 and on low- and moderate-income communities;

3 and

4 ‘‘(B) to the extent possible, consistent with

5 safety and soundness principles, seek to mini6 mize the effect that such standards have in re7 ducing the availability of credit for such pur8 poses and in such areas.’’.

9 SEC. 102. REAL ESTATE APPRAISAL AMENDMENT.

10 Section 1122 of the Financial Institutions Reform,

11 Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351)

12 is amended—

13 (1) by redesignating subsections (b) through (e)

14 as subsections (c) through (f), respectively;

15 (2) by inserting after subsection (a) the follow16 ing new subsection:

17 ‘‘(b) RECIPROCITY.—The Appraisal Subcommittee

18 shall encourage the States to develop reciprocity agree19 ments so as to readily authorize appraisers that are li20 censed or certified in one State (and that are in good

21 standing with their State appraiser certifying or licensing

22 regulatory body) to perform appraisals in other States.’’;

23 and

24 (3) in subsection (a)—
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1 (A) by redesignating paragraphs (1)

2 through (3) as subparagraphs (A) through (C);

3 (B) by striking ‘‘A State’’ and inserting

4 the following:

5 ‘‘(1) IN GENERAL.—A State’’; and

6 (C) by adding at the end the following new

7 paragraph:

8 ‘‘(2) FEES FOR TEMPORARY PRACTICE.—A

9 State appraiser certifying or licensing regulatory

10 body shall not impose excessive fees or burdensome

11 requirements for temporary practice under this sub12 section, as determined by the Appraisal Subcommit13 tee.’’.

14 SEC. 103. PUBLIC DEPOSITS.

15 Section 13(e) of the Federal Deposit Insurance Act

16 (12 U.S.C. 1823(e)) is amended—

17 (1) by redesignating paragraphs (1) through

18 (4) as subparagraphs (A) through (D), respectively;

19 (2) by striking ‘‘No agreement’’ and inserting

20 the following:

21 ‘‘(1) IN GENERAL.—No agreement’’; and

22 (3) by adding at the end the following new

23 paragraph:

24 ‘‘(2) EXCEPTION.—Agreements to provide for

25 the collateralization of or security for deposits made
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1 by Federal, State, or local governmental entities

2 shall not be deemed invalid under paragraph (1)

3 solely because the agreements were not made con4 temporaneously with the acceptance of the deposit.’’.

5 SEC. 104. TRANSITION PERIODS FOR NEW REGULATIONS.

6 In determining the effective date for regulations that

7 impose additional reporting, disclosure, or other require8 ments on insured depository institutions, each Federal

9 banking agency shall consider—

10 (1) the administrative burden that will be

11 placed on the depository institution;

12 (2) the ability of depository institutions of dif13 ferent sizes to meet the requirements imposed by the

14 new regulations, giving particular consideration to

15 the more limited resources of smaller depository in16 stitutions; and

17 (3) the time needed by the depository institu18 tions to generate new computer forms or systems,

19 set up new internal systems, and hire or train per20 sonnel to comply with the new regulation.

21 SEC. 105. ANNUAL EXAMINATIONS.

22 Section 10(d) of the Federal Deposit Insurance Act

23 (12 U.S.C. 1820(d)) is amended—

24 (1) by striking paragraphs (3) and (4) and in25 serting the following:
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1 ‘‘(3) STATE EXAMINATIONS ACCEPTABLE.—The

2 examinations required by paragraph (1) may be sat3 isfied by an examination of the insured depository

4 institution conducted by the State during the 12-

5 month period, if the appropriate Federal banking

6 agency determines that the State examination car7 ries out the purposes of this subsection.

8 ‘‘(4) 2-YEAR RULE FOR CERTAIN SMALL INSTI9 TUTIONS.—

10 ‘‘(A) IN GENERAL.—Paragraphs (1), (2),

11 and (3) shall apply with ‘24-month’ substituted

12 for ‘12-month’ if—

13 ‘‘(i) the insured depository institution

14 has total assets of less than $250,000,000;

15 ‘‘(ii) the institution is well capitalized,

16 as defined in section 38;

17 ‘‘(iii) when the institution was most

18 recently examined, it was found to be well

19 managed, and its composite condition was

20 found to be outstanding;

21 ‘‘(iv) the insured depository institu22 tion is not currently subject to a formal

23 enforcement proceeding or order by the

24 Corporation or the appropriate Federal

25 banking agency; and
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1 ‘‘(v) no person acquired control of the

2 institution during the 12-month period in

3 which a full-scope, onsite examination

4 would be required, but for this paragraph.

5 ‘‘(B) ADJUSTMENT REQUIRED.—The dol6 lar amount referred to in subparagraph (A)(i)

7 shall be adjusted annually after December 31,

8 1993, by the annual percentage increase in the

9 Consumer Price Index for Urban Wage Earners

10 and Clerical Workers published by the Bureau

11 of Labor Statistics.’’; and

12 (2) by adding at the end the following new

13 paragraph:

14 ‘‘(6) CERTAIN INSTITUTIONS WITHIN DEPOSI15 TORY INSTITUTION HOLDING COMPANIES.—At the

16 discretion of the appropriate Federal banking agen17 cy, an insured depository institution controlled by a

18 depository institution holding company shall be ex19 empt from the requirements of this subsection if—

20 ‘‘(A) the agency is satisfied that adequate

21 internal controls and examination procedures

22 exist within the holding company structure; or

23 ‘‘(B) the insured depository institutions

24 controlled by the holding company which rep25 resent a substantial majority of the total assets
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1 of all of the insured depository institution as2 sets controlled by that holding company have

3 been examined pursuant to the requirements of

4 this subsection.’’.

5 SEC. 106. COORDINATED EXAMINATIONS.

6 (a) COORDINATED FEDERAL AND STATE EXAMINA7 TIONS.—Section 10(d) of the Federal Deposit Insurance

8 Act (12 U.S.C. 1820(d)) is amended by adding at the end

9 the following new paragraph:

10 ‘‘(7) COORDINATED EXAMINATIONS.—To mini11 mize the disruptive effects of examinations on the

12 operations of depository institutions, each appro13 priate Federal banking agency shall, to the extent

14 practicable—

15 ‘‘(A) coordinate all examinations to be con16 ducted by that agency at an insured depository

17 institution; and

18 ‘‘(B) work with other appropriate Federal

19 banking agencies and appropriate State bank

20 supervisors to coordinate examinations.’’.

21 (b) TECHNICAL AND CONFORMING AMENDMENT.—

22 Section 3(r) of the Federal Deposit Insurance Act (12

23 U.S.C. 1813(r)) is amended to read as follows:

24 ‘‘(r) STATE BANK SUPERVISOR.—The term ‘State

25 bank supervisor’ means any officer, agency, or other entity
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1 of any State that has primary regulatory authority over

2 State banks or State savings associations in such State.’’.

3 SEC. 107. REDUCTION OF REPORTS OF CONDITION BUR4 DENS.

5 (a) REGULATORY REVIEW OF CALL REPORT BUR6 DENS.—

7 (1) IN GENERAL.—Not later than 180 days

8 after the date of enactment of this Act, the Federal

9 Financial Institutions Examination Council shall re10 view the regulatory burden and costs incurred by in11 sured depository institutions and insured credit

12 unions in preparing reports of condition.

13 (2) FACTORS TO BE CONSIDERED.—In conduct14 ing its review, each appropriate Federal banking

15 agency shall consider all relevant factors that it

16 deems necessary to correctly determine the extent of

17 the burden and costs, including—

18 (A) the dollar cost to insured depository

19 institutions and insured credit unions in prepar20 ing such reports;

21 (B) the time and resources expended to

22 meet regulatory directives;

23 (C) the frequency with which the agency

24 has modified the type of information required

25 to be reported in such reports and the costs and
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1 burdens associated with complying with such

2 modifications; and

3 (D) the extent to which such costs and

4 burdens, viewed within the overall context of

5 the total regulatory costs incurred by the insti6 tution, impact upon the availability of credit.

7 (3) CORRECTIVE MEASURES.—After conducting

8 its review under paragraph (1), each appropriate

9 Federal banking agency shall, consistent with safety

10 and soundness principles, revise its call report re11 quirements to remove any unnecessary burdens and

12 costs.

13 (b) REPEAL OF PUBLICATION REQUIREMENTS.—

14 (1) NATIONAL BANKS.—Section 5211 of the

15 Revised Statutes (12 U.S.C. 161) is amended—

16 (A) in the fifth sentence of subsection (a),

17 by striking ‘‘; and the statement of resources

18 and liabilities’’ and all that follows through ‘‘re19 quired by the Comptroller’’; and

20 (B) in subsection (c), by striking the

21 fourth sentence.

22 (2) STATE NON-MEMBER INSURED BANKS.—

23 Section 7(a)(1) of the Federal Deposit Insurance

24 Act (12 U.S.C. 1817(a)(1)) is amended by striking

25 the fourth sentence.
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1 (3) FEDERAL RESERVE BANKS.—The last sen2 tence of the sixth undesignated paragraph of section

3 9 of the Federal Reserve Act (12 U.S.C. 324) is

4 amended by striking ‘‘and shall be published’’ and

5 all that follows through ‘‘may prescribe’’.

6 (c) CHANGE IN FORM OF REPORT OF CONDITION.—

7 (1) NATIONAL BANKS.—Section 5211(a) of the

8 Revised Statutes (12 U.S.C. 161(a)) is amended by

9 adding at the end the following: ‘‘In determining the

10 effective date for regulations issued under this sub11 section, the Comptroller of the Currency shall con12 sider the administrative burden that will be placed

13 on the association, the ability of associations of dif14 ferent sizes to meet the requirements of the new reg15 ulations, giving particular consideration to the more

16 limited resources of smaller associations, and the

17 time required for the association to generate new

18 computer forms or systems, set up new internal sys19 tems, and hire or train personnel to comply with the

20 new regulations.’’.

21 (2) STATE NON-MEMBER INSURED BANKS.—

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

23 (12 U.S.C. 1817(a)) is amended by adding at the

24 end the following new paragraph:
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1 ‘‘(11) CHANGE IN FORM OF REPORT OF CONDI2 TION.—In determining the effective date for regula3 tions issued under this subsection, the Board of Di4 rectors shall consider—

5 ‘‘(A) the administrative burden that will be

6 placed on the insured depository institution;

7 ‘‘(B) the ability of depository institutions

8 of different sizes to meet the requirements of

9 the new regulations, giving particular consider10 ation to the more limited resources of smaller

11 depository institutions; and

12 ‘‘(C) the time required for the depository

13 institution to generate new computer forms or

14 systems, set up new internal systems, and hire

15 or train personnel to comply with the new regu16 lations.’’.

17 (3) STATE MEMBER BANKS.—The sixth undes18 ignated paragraph of section 9 of the Federal Re19 serve Act (12 U.S.C. 324) is amended by adding at

20 the end the following: ‘‘In determining the effective

21 date for regulations issued under this subsection, the

22 Board of Governors of the Federal Reserve System

23 shall consider the administrative burden that will be

24 placed on the bank, the ability of banks of different

25 sizes to meet the requirements of the new regula-
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1 tions, giving particular consideration to the more

2 limited resources of smaller banks, and the time re3 quired for the bank to generate new computer forms

4 or systems, set up new internal systems, and hire or

5 train personnel to comply with the new regula6 tions.’’.

7 (4) SAVINGS ASSOCIATIONS.—Section 5(v) of

8 the Home Owners’ Loan Act (12 U.S.C. 1464(v)) is

9 amended by adding at the end the following new

10 paragraph:

11 ‘‘(9) CHANGES IN FORM OF REPORT OF CONDI12 TION.—In determining the effective date for regula13 tions issued under this subsection, the Director shall

14 consider—

15 ‘‘(A) the administrative burden that will be

16 placed on the savings association;

17 ‘‘(B) the ability of savings associations of

18 different sizes to meet the requirements of the

19 new regulations, giving particular consideration

20 to the more limited resources of smaller savings

21 associations; and

22 ‘‘(C) the time required for the savings as23 sociation to generate new computer forms or

24 systems, set up new internal systems, and hire
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1 or train personnel to comply with the new regu2 lations.’’.

3 SEC. 108. BRANCH CLOSURES.

4 (a) DEFINITION OF ‘‘BRANCH’’.—Section 42 of the

5 Federal Deposit Insurance Act (12 U.S.C. 1831r–1) is

6 amended by adding at the end the following new sub7 section:

8 ‘‘(d) DEFINITIONS.—For purposes of this section, the

9 term ‘branch’ does not include—

10 ‘‘(1) an automated teller machine;

11 ‘‘(2) a branch acquired through merger, consoli12 dation, purchase, assumption, or similar method, if

13 such branch is located in a local market area cur14 rently served by another branch of the acquiring in15 stitution;

16 ‘‘(3) a branch that is closed and reopened in

17 another location within the same local market area

18 that would continue to provide banking services to

19 substantially all of the customers served by the

20 branch that is closed; or

21 ‘‘(4) a branch that is closed in connection

22 with—

23 ‘‘(A) the sale of an insured depository in24 stitution in default, for which the Corporation
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1 or the Resolution Trust Corporation has been

2 appointed as receiver;

3 ‘‘(B) an emergency acquisition under—

4 ‘‘(i) section 11(n); or

5 ‘‘(ii) subsections (f) or (k) of section

6 13; or

7 ‘‘(C) any assistance provided by the Cor8 poration under section 13(c).’’.

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

10 this section shall have the same effective date as section

11 42 of the Federal Deposit Insurance Act.

12 SEC. 109. BANK SECRECY ACT.

13 (a) STAFF COMMENTARIES.—Chapter 53 of title 31,

14 United States Code, is amended by adding at the end the

15 following new section:

16 ‘‘SEC. 5329. STAFF COMMENTARIES.

17 ‘‘The Secretary of the Treasury shall review all regu18 lations promulgated under this subchapter on an annual

19 basis and seek comment from the public pursuant to this

20 review. The Secretary shall publish, on an annual basis,

21 all written rulings interpreting this subchapter, as well as

22 a staff commentary to the regulations issued under this

23 subchapter.’’.

24 (b) EXEMPTION PROCESS.—Section 5318(a)(5) of

25 title 31, United States Code, is amended—
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1 (1) by inserting ‘‘or exception’’ after ‘‘an appro2 priate exemption’’; and

3 (2) by inserting the following before the first

4 period: ‘‘after receiving comments from the entities

5 covered by this subchapter. The Secretary shall take

6 into account the effect that changes to the exemp7 tion or exception process will have on the cost and

8 efficiency of the reporting process’’.

9 (c) INFLATION ADJUSTMENTS ON CTR AMOUNTS.—

10 Section 5313(a) of title 31, United States Code, is amend11 ed by adding at the end the following: ‘‘The Secretary

12 shall review the reporting requirements of this subsection

13 not later than September 1 of each year to determine if

14 the reporting amount prescribed by the Secretary should

15 be adjusted to account for inflation, the cost effectiveness

16 of the requirement, or the usefulness of the requirement

17 for law enforcement purposes. The Secretary shall submit

18 a written report to the Congress in each year during which

19 a change is made, disclosing how the reporting threshold

20 decision was reached. The report shall include an analysis

21 of how the change will affect domestic financial institu22 tions.’’.
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1 SEC. 110. MINIMIZING REGULATORY BURDENS.

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

3 (12 U.S.C. 1817(a)) is amended by adding at the end the

4 following new paragraph:

5 ‘‘(12) MINIMIZING REGULATORY BURDENS.—In

6 prescribing reporting and other requirements pursu7 ant to this subsection, the Federal banking agencies

8 shall minimize the regulatory burden imposed upon

9 insured depository institutions, consistent with safe10 ty and soundness principles.’’.

11 SEC. 111. REPEAL OF OUTDATED STATUTORY PROVISION.

12 Section 5204 of the Revised Statutes (12 U.S.C. 56)

13 is amended—

14 (1) in the second sentence, by striking ‘‘deduct15 ing therefrom its losses and bad debts’’ and insert16 ing ‘‘subject to other provisions of law’’; and

17 (2) by striking the third sentence.

18 SEC. 112. ELIMINATION OF DUPLICATIVE DISCLOSURES

19 FOR HOME EQUITY LOANS.

20 Section 4(a) of the Real Estate Settlement Proce21 dures Act (12 U.S.C. 2603(a)) is amended by adding at

22 the end the following: ‘‘Disclosures made under section

23 127A(a) of the Truth in Lending Act may be used in lieu

24 of the standard real estate settlement form otherwise re25 quired under this section in the case of federally related
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1 mortgage loans secured by a subordinate lien on residen2 tial property.’’.

3 SEC. 113. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.

4 Section 909(a)(1) of Electronic Fund Transfer Act

5 (15 U.S.C. 1693g(a)(1)) is amended to read as follows:

6 ‘‘(1) $50, or in cases where the cardholder has

7 substantially contributed to the unauthorized use by

8 writing a personal identification or other security

9 code on the card, $500; or’’.

10 SEC. 114. HOMEOWNERSHIP DEBT COUNSELING NOTIFICA11 TION.

12 Section 106(c)(5)(B) of the Housing and Urban De13 velopment Act of 1968 (12 U.S.C. 1701x(c)(5)(B)) is

14 amended—

15 (1) by redesignating clauses (i) and (ii) as

16 subclauses (I) and (II), respectively;

17 (2) by striking ‘‘The notification’’ and inserting

18 the following:

19 ‘‘(i) IN GENERAL.—The notification’’;

20 and

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

22 ‘‘(ii) ONCE YEARLY REQUIREMENT

23 FOR CREDITORS.—Creditors shall not be

24 required to provide the notification re-
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1 quired under subparagraph (A) more than

2 once annually.’’.

3 SEC. 115. CLARIFICATION OF DISCLOSURE REQUIREMENTS.

4 Section 6(a) of the Real Estate Settlement Proce5 dures Act of 1974 (12 U.S.C. 2605(a)) is amended—

6 (1) in paragraph (1)(B)—

7 (A) by redesignating clauses (i) and (ii) as

8 subclauses (I) and (II), respectively;

9 (B) by striking ‘‘and’’ at the end of

10 subclause (II), as so redesignated, and inserting

11 ‘‘or’’;

12 (C) by striking ‘‘for each’’ and inserting

13 the following: ‘‘at the option of the person mak14 ing the federally related mortgage loan—

15 ‘‘(i) for each’’; and

16 (D) by adding at the end the following new

17 clause:

18 ‘‘(ii) a statement that the person mak19 ing the loan has previously assigned, sold,

20 or transferred the servicing of federally re21 lated mortgage loans; and’’; and

22 (2) in paragraph (2), by adding at the end the

23 following: ‘‘The Secretary shall permit the person

24 originating the loan, at the option of such person, to

25 provide a statement that the servicing may be as-
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1 signed, sold, or transferred during the 12-month pe2 riod beginning upon origination in lieu of the per3 centage estimates otherwise required to be disclosed

4 under this paragraph.’’.

5 SEC. 116. EXEMPTION OF BUSINESS LOANS.

6 The Real Estate Settlement Procedures Act of 1974

7 (12 U.S.C. 2601 et seq.) is amended by inserting after

8 section 6 the following new section:

9 ‘‘SEC. 7. EXEMPTED TRANSACTIONS.

10 ‘‘This title does not apply to credit transactions in11 volving extensions of credit—

12 ‘‘(1) primarily for business, commercial, or ag13 ricultural purposes; or

14 ‘‘(2) to government or governmental agencies or

15 instrumentalities.’’.

16 SEC. 117. EFFECTIVE DATE FOR INTER-AFFILIATE TRANS17 ACTIONS.

18 Section 11(a)(2) of the Home Owners’ Loan Act (12

19 U.S.C. 1468(a)(2)) is amended by adding at the end the

20 following new subparagraphs:

21 ‘‘(C) TRANSITION RULE FOR WELL CAP22 ITALIZED SAVINGS ASSOCIATIONS.—

23 ‘‘(i) IN GENERAL.—A savings associa24 tion that is well capitalized (as defined in

25 section 38 of the Federal Deposit Insur-
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1 ance Act), as determined without including

2 goodwill in calculating core capital, shall be

3 treated as a bank for purposes of section

4 23A(d)(1) and section 23B of the Federal

5 Reserve Act.

6 ‘‘(ii) LIABILITY OF COMMONLY CON7 TROLLED DEPOSITORY INSTITUTIONS.—

8 Any savings association that engages

9 under clause (i) in a transaction that

10 would not otherwise be permissible under

11 this subsection, and any affiliated insured

12 bank that is commonly controlled (as de13 fined in section 5(e)(9) of the Federal De14 posit Insurance Act), shall be subject to

15 subsection (e) of section 5 of the Federal

16 Deposit Insurance Act as if paragraph (6)

17 of that subsection did not apply.’’.

18 Subtitle B—Studies and Reports

19 SEC. 151. REPORT ON CAPITAL STANDARDS AND THEIR IM20 PACT ON THE ECONOMY.

21 (a) IN GENERAL.—Not later than 180 days after the

22 date of enactment of this Act, the Secretary of the Treas23 ury, after consultation with the Federal banking agencies,

24 shall report to the Committee on Banking, Housing, and

25 Urban Affairs of the Senate and the Committee on Bank-
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1 ing, Finance and Urban Affairs of the House of Rep2 resentatives on the effect of the implementation of risk

3 based capital standards on—

4 (1) the safety and soundness of insured deposi5 tory institutions; and

6 (2) the availability of credit, particularly to con7 sumers and small business concerns.

8 (b) RECOMMENDATIONS.—The report required by

9 subsection (a) shall contain any recommendations that the

10 Secretary of the Treasury considers relevant.

11 SEC. 152. STERILE RESERVES STUDIES.

12 (a) FEDERAL RESERVE STUDY.—Not later than 180

13 days after the date of enactment of this Act, the Board

14 of Governors of the Federal Reserve System, in consulta15 tion with the Chairperson of the Federal Deposit Insur16 ance Corporation, shall conduct a study and report to Con17 gress on—

18 (1) the necessity, for monetary policy purposes,

19 of continuing to require insured depository institu20 tions to maintain sterile reserves;

21 (2) the appropriateness of paying a market rate

22 of interest to insured depository institutions on ster23 ile reserves or, in the alternative, providing payment

24 of this interest into the appropriate deposit insur25 ance fund;
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1 (3) the monetary impact that the failure to pay

2 interest on sterile reserves has had on insured depos3 itory institutions, including an estimate of the total

4 dollar amount of interest and potential income lost

5 by insured depository institutions; and

6 (4) the impact that failure to pay interest on

7 sterile reserves has had on the ability of the banking

8 industry to compete with nonbanking providers of fi9 nancial services and with foreign banks.

10 (b) BUDGETARY IMPACT STUDY.—Not later than

11 180 days after the date of enactment of this Act, the Di12 rector of the Office of Management and Budget and the

13 Congressional Budget Office, in consultation with the

14 Committees on the Budget of the Senate and the House

15 of Representatives, shall jointly conduct a study and re16 port to the Congress on the budgetary impact of—

17 (1) paying a market rate of interest to insured

18 depository institutions on sterile reserves; and

19 (2) paying such interest into the respective

20 deposit insurance funds.

21 SEC. 153. PAPERWORK REDUCTION REVIEW.

22 Each appropriate Federal banking agency, in con23 sultation with insured depository institutions and other in24 terested parties, shall—
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1 (1) not later than 180 days after the date of

2 enactment of this Act, conduct a review of the extent

3 to which current regulations require insured deposi4 tory institutions to produce unnecessary internal

5 written policies; and

6 (2) take prompt steps to eliminate such require7 ments, where appropriate.

8 SEC. 154. REGULATORY REVIEW OF CAPITAL COMPLIANCE

9 BURDEN.

10 Not later than 180 days after the date of enactment

11 of this Act, the Federal Financial Institutions Examina12 tion Council, in consultation with insured depository insti13 tutions and other interested parties, shall—

14 (1) review the extent to which current compli15 ance requirements associated with risk-based capital

16 rules have an unnecessarily costly and burdensome

17 effect on community banks; and

18 (2) where appropriate, reduce such costs and

19 burdens.

20 SEC. 155. STREAMLINED LENDING PROCESS FOR

21 CONSUMER BENEFIT.

22 (a) FEDERAL RESERVE STUDY.—Not later than 12

23 months after the date of enactment of this Act, the Board

24 of Governors of the Federal Reserve System (hereafter in

25 this section referred to as the ‘Board’), in consultation
26

•S 1124 IS

1 with the Secretary of Housing and Urban Development,

2 shall conduct a study and report to the Congress on ways

3 to streamline the credit-granting process.

4 (b) FOCUS.—In carrying out subsection (a), the

5 Board shall—

6 (1) identify ways to streamline the home mort7 gage, small business, and consumer lending proc8 esses to—

9 (A) reduce consumer inconvenience, cost,

10 and time delays; and

11 (B) minimize cost and burdens on insured

12 depository institutions and credit unions;

13 (2) take such regulatory action as appropriate,

14 consistent with safety and soundness principles, to

15 meet the objectives of paragraph (1); and

16 (3) provide to the Congress legislative rec17 ommendations on changes necessary to carry out

18 this section.

19 (c) COMMENT.—In carrying out this section, the

20 Board shall solicit comments from other Federal banking

21 agencies, consumer groups, insured depository institu22 tions, credit unions, and other interested parties.
27

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1 TITLE II—ENHANCED CREDIT

2 AVAILABILITY AND DEPOSIT

3 INSURANCE PROTECTION

4 SEC. 201. ENHANCED CREDIT AVAILABILITY AND DEPOSIT

5 INSURANCE PROTECTION.

6 (a) CERCLA AMENDMENT.—The Comprehensive

7 Environmental Response, Compensation, and Liability Act

8 of 1980 (42 U.S.C. 9601 et seq.) is amended by inserting

9 after section 126 the following new section:

10 ‘‘SEC. 127. INSURED DEPOSITORY INSTITUTION AND OTHER

11 LENDER LIABILITY.

12 ‘‘(a) LIABILITY LIMITATIONS.—

13 ‘‘(1) IN GENERAL.—The liability of an insured

14 depository institution or other lender under this Act

15 or subtitle I of the Solid Waste Disposal Act for the

16 release or threatened release of petroleum or a haz17 ardous substance at, from, or in connection with

18 property—

19 ‘‘(A) acquired through foreclosure;

20 ‘‘(B) held, directly or indirectly, in a fidu21 ciary capacity;

22 ‘‘(C) held by a lessor pursuant to the

23 terms of an extension of credit; or
28

•S 1124 IS

1 ‘‘(D) subject to financial control or finan2 cial oversight pursuant to the terms of an ex3 tension of credit,

4 shall be limited to the actual benefit conferred on

5 such institution or lender by a removal, remedial, or

6 other response action undertaken by another party.

7 ‘‘(2) SAFE HARBOR.—An insured depository in8 stitution or other lender shall not be liable under

9 this Act or subtitle I of the Solid Waste Disposal

10 Act and shall not be deemed to have participated in

11 management, as described in section 101(20)(A) of

12 this Act or section 9003(h)(9) of the Solid Waste

13 Disposal Act, based solely on the fact that the insti14 tution or lender—

15 ‘‘(A) holds a security interest or abandons

16 or releases its security interest in the property

17 before foreclosure;

18 ‘‘(B) has the unexercised capacity to influ19 ence operations at or on property in which it

20 has a security interest;

21 ‘‘(C) includes in the terms of an extension

22 of credit (or in the contract relating thereto),

23 covenants, warranties, or other terms and con24 ditions that relate to compliance with environ25 mental laws;
29

•S 1124 IS

1 ‘‘(D) monitors or enforces the terms and

2 conditions of the extension of credit;

3 ‘‘(E) monitors or undertakes one or more

4 inspections of the property;

5 ‘‘(F) requires cleanup of the property prior

6 to, during, or upon the expiration of the term

7 of the extension of credit;

8 ‘‘(G) provides financial or other advice or

9 counseling in an effort to mitigate, prevent, or

10 cure default or diminution in the value of the

11 property;

12 ‘‘(H) restructures, renegotiates, or other13 wise agrees to alter the terms and conditions of

14 the extension of credit;

15 ‘‘(I) exercises whatever other remedies that

16 may be available under applicable law for the

17 breach of any term or condition of the extension

18 of credit; or

19 ‘‘(J) declines to take any of the actions de20 scribed in this paragraph.

21 ‘‘(b) ACTUAL BENEFIT.—For purposes of this sec22 tion, the actual benefit conferred on an institution or lend23 er by a removal, remedial, or other response action shall

24 be equal to the net gain, if any, realized by such institution

25 or lender due to such action. For purposes of this sub-
30

•S 1124 IS

1 section, the ‘net gain’ shall not exceed the amount realized

2 by the institution or lender on the sale of property.

3 ‘‘(c) EXCLUSION.—Notwithstanding subsection (a),

4 but subject to the provisions of section 107(d), a deposi5 tory institution or lender that causes or significantly and

6 materially contributes to the release of petroleum or a haz7 ardous substance that forms the basis for liability de8 scribed in subsection (a), may be liable for removal, reme9 dial, or other response action pertaining to that release.

10 ‘‘(d) ENVIRONMENTAL ASSESSMENTS.—

11 ‘‘(1) DEPOSITORY INSTITUTIONS.—The Federal

12 Deposit Insurance Corporation, in consultation with

13 the Administrator of the Environmental Protection

14 Agency, shall promulgate regulations to implement

15 this section. Such regulations shall include require16 ments for insured depository institutions to develop

17 and implement adequate procedures to evaluate ac18 tual and potential environmental risks that may

19 arise from or at property prior to making an exten20 sion of credit secured by such property. The regula21 tions may provide for different types of environ22 mental assessments as may be appropriate under the

23 circumstances, in order to account for the levels of

24 risk that may be posed by different classes of collat25 eral. Failure to comply with the environmental as-
31

•S 1124 IS

1 sessment regulations promulgated under this sub2 section shall be deemed to be a violation of a regula3 tion promulgated under the Federal Deposit Insur4 ance Act.

5 ‘‘(2) LENDERS.—The Federal Deposit Insur6 ance Corporation, in consultation with the Adminis7 trator of the Environmental Protection Agency, shall

8 promulgate regulations that are substantially similar

9 to those promulgated under paragraph (1) to assure

10 that lenders develop and implement procedures to

11 evaluate actual and potential environmental risks

12 that may arise from or at property prior to making

13 an extension of credit secured by such property. The

14 regulations may provide for exclusions or different

15 types of environmental assessments in order to take

16 into account the level of risk that may be posed by

17 particular classes of collateral.

18 ‘‘(3) FINAL REGULATIONS.—Final regulations

19 required to be promulgated pursuant to paragraphs

20 (1) and (2) shall be issued not later than 180 days

21 after the date of enactment of this section.

22 ‘‘(e) DEFINITIONS.—For purposes of this section, the

23 following definitions shall apply:

24 ‘‘(1) PROPERTY ACQUIRED THROUGH FORE25 CLOSURE.—The term ‘property acquired through
32

•S 1124 IS

1 foreclosure’ or ‘acquires property through fore2 closure’ means property acquired, or the act of ac3 quiring property, from a nonaffiliated party by an

4 insured depository institution or other lender—

5 ‘‘(A) through purchase at sales under

6 judgment or decree, power of sales, nonjudicial

7 foreclosure sales, or from a trustee, deed in lieu

8 of foreclosure, or similar conveyance, or

9 through repossession, if such property was secu10 rity for an extension of credit previously con11 tracted;

12 ‘‘(B) through conveyance pursuant to an

13 extension of credit previously contracted, in14 cluding the termination of a lease agreement; or

15 ‘‘(C) through any other formal or informal

16 manner by which the insured depository institu17 tion or other lender temporarily acquires, for

18 subsequent disposition, possession of collateral

19 in order to protect its interest.

20 Property is not acquired through foreclosure if the

21 insured depository institution or lender does not seek

22 to sell or otherwise divest such property at the earli23 est practical, commercially reasonable time, taking

24 into account market conditions and legal and regu25 latory requirements.
33

•S 1124 IS

1 ‘‘(2) LENDER.—The term ‘lender’ means—

2 ‘‘(A) a person (other than an insured de3 pository institution) that—

4 ‘‘(i) makes a bona fide extension of

5 credit to a nonaffiliated party; and

6 ‘‘(ii) substantially and materially com7 plies with the environmental assessment

8 requirements imposed under subsection

9 (d), after final regulations under that sub10 section become effective;

11 and the successors and assigns of such person;

12 ‘‘(B) the Federal National Mortgage Asso13 ciation, the Federal Home Loan Mortgage Cor14 poration, the Federal Agricultural Mortgage

15 Corporation, or other entity that in a bona fide

16 manner is engaged in the business of buying or

17 selling loans or interests therein, if such Asso18 ciation, Corporation, or entity requires institu19 tions from which it purchases loans (or other

20 obligations) to comply substantially and materi21 ally with the requirements of subsection (d),

22 after final regulations under that subsection be23 come effective; and

24 ‘‘(C) any person regularly engaged in the

25 business of insuring or guaranteeing against a
34

•S 1124 IS

1 default in the repayment of an extension of

2 credit, or acting as a surety with respect to an

3 extension of credit, to nonaffiliated parties.

4 ‘‘(3) FIDUCIARY CAPACITY.—The term ‘fidu5 ciary capacity’ means acting for the benefit of a

6 nonaffiliated person as a bona fide—

7 ‘‘(A) trustee;

8 ‘‘(B) executor;

9 ‘‘(C) administrator;

10 ‘‘(D) custodian;

11 ‘‘(E) guardian of estates;

12 ‘‘(F) receiver;

13 ‘‘(G) conservator;

14 ‘‘(H) committee of estates of lunatics; or

15 ‘‘(I) any similar capacity.

16 ‘‘(4) EXTENSION OF CREDIT.—The term ‘exten17 sion of credit’ includes a lease finance transaction—

18 ‘‘(A) in which the lessor does not initially

19 select the leased property and does not during

20 the lease term control the daily operations or

21 maintenance of the property; or

22 ‘‘(B) which conforms with regulations is23 sued by the appropriate Federal banking agency

24 (as defined in section 3 of the Federal Deposit
35

•S 1124 IS

1 Insurance Act) or the appropriate State bank2 ing regulatory authority.

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

4 term ‘insured depository institution’ has the same

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

6 Insurance Act, and shall also include—

7 ‘‘(A) a federally insured credit union;

8 ‘‘(B) a bank or association chartered under

9 the Farm Credit Act of 1971; and

10 ‘‘(C) a leasing or trust company that is an

11 affiliate of an insured depository institution (as

12 such term is defined in this paragraph).

13 ‘‘(6) RELEASE.—The term ‘release’ has the

14 same meaning as in section 101(22), and also in15 cludes the threatened release, use, storage, disposal,

16 treatment, generation, or transportation of a hazard17 ous substance.

18 ‘‘(7) HAZARDOUS SUBSTANCE.—The term ‘haz19 ardous substance’ has the same meaning as in sec20 tion 101(14).

21 ‘‘(8) SECURITY INTEREST.—The term ‘security

22 interest’ includes rights under a mortgage, deed of

23 trust, assignment, judgment lien, pledge, security

24 agreement, factoring agreement, lease, or any other

25 right accruing to a person to secure the repayment
36

•S 1124 IS

1 of money, the performance of a duty, or some other

2 obligation.

3 ‘‘(f) SAVINGS CLAUSE.—Nothing in this section shall

4 affect the rights or immunities or other defenses that are

5 available under this Act or other applicable law to any

6 party subject to the provisions of this section. Nothing in

7 this section shall be construed to create any liability for

8 any party. Nothing in this section shall create a private

9 right of action against a depository institution or lender

10 or against a Federal banking or lending agency.

11 ‘‘(g) EFFECTIVE DATE.—This section shall become

12 effective upon the date of its enactment.’’.

13 (b) FEDERAL DEPOSIT INSURANCE ACT AMEND14 MENT.—The Federal Deposit Insurance Act (12 U.S.C.

15 1811 et seq.) is amended by adding at the end the follow16 ing new section:

17 ‘‘SEC. 44. FEDERAL BANKING AND LENDING AGENCY LI18 ABILITY.

19 ‘‘(a) GOVERNMENTAL ENTITIES.—

20 ‘‘(1) BANKING AND LENDING AGENCIES.—Ex21 cept as provided in paragraph (2), a Federal bank22 ing or lending agency shall not be liable under any

23 law imposing strict liability for the release or threat24 ened release of petroleum or a hazardous substance
37

•S 1124 IS

1 at or from property (including any right or interest

2 therein) acquired—

3 ‘‘(A) in connection with the exercise of re4 ceivership or conservatorship authority, or the

5 liquidation or winding up of the affairs of an

6 insured depository institution, including any of

7 its subsidiaries;

8 ‘‘(B) in connection with the provision of

9 loans, discounts, advances, guarantees, insur10 ance or other financial assistance; or

11 ‘‘(C) in connection with property received

12 in any civil or criminal proceeding, or adminis13 trative enforcement action, whether by settle14 ment or order.

15 ‘‘(2) APPLICATION OF STATE LAW.—Nothing in

16 this section shall be construed as preempting, affect17 ing, applying to, or modifying any State law, or any

18 rights, actions, cause of action, or obligations under

19 State law, except that liability under State law shall

20 not exceed the value of the agency’s interest in the

21 asset giving rise to such liability. Nothing in this

22 section shall be construed to prevent a Federal

23 banking or lending agency from agreeing with a

24 State to transfer property to such State in lieu of
38

•S 1124 IS

1 any liability that might otherwise be imposed under

2 State law.

3 ‘‘(3) LIMITATION.—Notwithstanding paragraph

4 (1), and subject to section 107(d) of the Comprehen5 sive Environmental Response, Compensation, and

6 Liability Act of 1980, a Federal banking or lending

7 agency that causes or significantly and materially

8 contributes to the release of petroleum or a hazard9 ous substance that forms the basis for liability de10 scribed in paragraph (1), may be liable for removal,

11 remedial, or other response action pertaining to that

12 release.

13 ‘‘(4) SUBSEQUENT PURCHASER.—The immu14 nity provided by paragraph (1) shall extend to the

15 first subsequent purchaser of property described in

16 such paragraph from a Federal banking or lending

17 agency, unless such purchaser—

18 ‘‘(A) would otherwise be liable or poten19 tially liable for all or part of the costs of the re20 moval, remedial, or other response action due to

21 a prior relationship with the property;

22 ‘‘(B) is or was affiliated with or related to

23 a party described in subparagraph (A);

24 ‘‘(C) fails to agree to take reasonable steps

25 necessary to remedy the release or threatened
39

•S 1124 IS

1 release in a manner consistent with the pur2 poses of applicable environmental laws; or

3 ‘‘(D) causes or materially and significantly

4 contributes to any additional release or threat5 ened release on the property.

6 ‘‘(5) FEDERAL OR STATE ACTION.—Notwith7 standing paragraph (4), if a Federal agency or State

8 environmental agency is required to take remedial

9 action due to the failure of a subsequent purchaser

10 to carry out, in good faith, the agreement described

11 in paragraph (4)(C), such subsequent purchaser

12 shall reimburse the Federal or State environmental

13 agency for the costs of such remedial action. How14 ever, any such reimbursement shall not exceed the

15 full fair market value of the property following com16 pletion of the remedial action.

17 ‘‘(b) LIEN EXEMPTION.—Notwithstanding any other

18 provision of law, any property held by a subsequent pur19 chaser referred to in subsection (a)(4) or held by a Federal

20 banking or lending agency shall not be subject to any lien

21 for costs or damages associated with the release or threat22 ened release of petroleum or a hazardous substance known

23 to exist at the time of the transfer.

24 ‘‘(c) EXEMPTION FROM COVENANTS TO REMEDI25 ATE.—A Federal banking or lending agency shall be ex-
40

•S 1124 IS

1 empt from any law requiring such agency to grant cov2 enants warranting that a removal, remedial, or other re3 sponse action has been, or will in the future be, taken with

4 respect to property acquired in the manner described in

5 subsection (a)(1).

6 ‘‘(d) DEFINITIONS.—For purposes of this section, the

7 following definitions shall apply:

8 ‘‘(1) FEDERAL BANKING OR LENDING AGEN9 CY.—The term ‘Federal banking or lending agency’

10 means the Corporation, the Resolution Trust Cor11 poration, the Board of Governors of the Federal Re12 serve System, a Federal Reserve Bank, a Federal

13 Home Loan Bank, the Office of the Comptroller of

14 the Currency, the Office of Thrift Supervision, the

15 National Credit Union Administration Board, the

16 Farm Credit Administration, the Farm Credit Sys17 tem Insurance Corporation, the Farm Credit System

18 Assistance Board, the Farmers Home Administra19 tion, the Rural Electrification Administration, and

20 the Small Business Administration, in any of their

21 capacities, and their agents.

22 ‘‘(2) HAZARDOUS SUBSTANCE.—The term ‘haz23 ardous substance’ has the same meaning as in sec24 tion 101(14) of the Comprehensive Environmental

25 Response, Compensation, and Liability Act of 1980.
41

•S 1124 IS

1 ‘‘(3) RELEASE.—The term ‘release’ has the

2 same meaning as in section 101(22) of the Com3 prehensive Environmental Response, Compensation,

4 and Liability Act of 1980, and also includes the

5 threatened release, use, storage, disposal, treatment,

6 generation, or transportation of a hazardous sub7 stance.

8 ‘‘(e) SAVINGS CLAUSE.—Nothing in this section shall

9 affect the rights or immunities or other defenses that are

10 available under this Act or other applicable law to any

11 party subject to the provisions of this section. Nothing in

12 this section shall be construed to create any liability for

13 any party. Nothing in this section shall create a private

14 right of action against a depository institution or lender

15 or against a Federal banking or lending agency.’’.

16 TITLE III—TECHNICAL AND

17 CONFORMING AMENDMENTS

18 SEC. 301. TRANSFERRED DEPOSITS.

19 Section 3(n) of the Federal Deposit Insurance Act

20 (12 U.S.C. 1813(n)) is amended by striking ‘‘and as21 sumed’’ and inserting ‘‘or assumed’’.

22 SEC. 302. TECHNICAL AMENDMENT.

23 Section 3(q)(2)(E) of the Federal Deposit Insurance

24 Act (12 U.S.C. 1813(q)(2)(E)) is amended by striking

25 ‘‘Depository’’ and inserting ‘‘Financial’’.
42

•S 1124 IS

1 SEC. 303. CERTIFIED STATEMENTS.

2 Section 7(a)(3) of the Federal Deposit Insurance Act

3 (12 U.S.C. 1817(a)(3)) is amended by striking the third

4 sentence and inserting the following new sentence: ‘‘Two

5 dates shall be selected within the semiannual period of

6 January to June inclusive, and two dates shall be selected

7 within the semiannual period of July to December inclu8 sive.’’.

9 SEC. 304. CROSS REFERENCE CORRECTION.

10 Section 8(o) of the Federal Deposit Insurance Act

11 (12 U.S.C. 1818(o)) is amended in the second sentence

12 by striking ‘‘subsection (b)’’ and inserting ‘‘subsection

13 (d)’’.

14 SEC. 305. COURT COSTS; BONDS; FILING FEES.

15 Section 9(b)(4) of the Federal Deposit Insurance Act

16 (12 U.S.C. 1819(b)(4)) is amended to read as follows:

17 ‘‘(4) BONDS OR FEES.—The Corporation shall

18 not be required to—

19 ‘‘(A) post any bond or security to—

20 ‘‘(i) initiate or respond to any action

21 for a temporary restraining order or an in22 junction; or

23 ‘‘(ii) pursue any appeal;

24 ‘‘(B) pay any filing fees in United States

25 district courts, bankruptcy courts, or courts of

26 appeal; or
43

•S 1124 IS

1 ‘‘(C) pay any fees for service of process by

2 the United States Marshal.’’.

3 SEC. 306. DELETION OF OBSOLETE PROVISION.

4 Section 18(g)(1) of the Federal Deposit Insurance

5 Act (12 U.S.C. 1828(g)(1)) is amended by striking out

6 everything beginning with ‘‘During the period commencing

7 on October 15, 1968,’’ through the period at the end.

8 SEC. 307. FEDERAL RESERVE ACT AMENDMENT.

9 Section 2 of the Federal Reserve Act (12 U.S.C. 222)

10 is amended in the sixth sentence of the first paragraph

11 by inserting ‘‘, after receiving approval from the Board

12 of Directors of the Federal Deposit Insurance Corporation

13 pursuant to section 5(a) of the Federal Deposit Insurance

14 Act,’’ before ‘‘thereupon’’.

15 SEC. 308. ANNUAL REPORT OF APPRAISAL SUBCOMMITTEE.

16 Section 1103(a)(4) of the Federal Financial Institu17 tions Examination Council Act of 1978 (12 U.S.C.

18 3332(a)(4)) is amended by striking ‘‘January’’ and insert19 ing ‘‘March’’.

20 SEC. 309. INSURANCE OF BRIDGE BANKS.

21 Section 5(a)(3) of the Federal Deposit Insurance Act

22 (12 U.S.C. 1815(a)(3)) is amended—

23 (1) by amending the heading to read as follows:

24 ‘‘APPLICATION AND APPROVAL NOT REQUIRED IN

25 CERTAIN CASES.—’’; and
44

•S 1124 IS

1 (2) by inserting ‘‘any bridge bank or’’ before

2 ‘‘any depository institution’’.

3 SEC. 310. ADDITIONAL TECHNICAL AMENDMENTS TO THE

4 FEDERAL BANKING AND HOUSING LAWS.

5 (a) FEDERAL DEPOSIT INSURANCE ACT AMEND6 MENTS.—The Federal Deposit Insurance Act (12 U.S.C.

7 1811 et seq.) is amended—

8 (1) in section 3—

9 (A) in subsection (i)(1), by striking

10 ‘‘(11)(h)’’ and inserting ‘‘(11)(m)’’; and

11 (B) in subsection (l)(4), by striking

12 ‘‘bank’s’’ and inserting ‘‘a bank’s’’;

13 (2) in section 5(b)(5), by striking the semicolon

14 at the end and inserting a comma;

15 (3) in section 5(e)(4), by redesignating clauses

16 (i) and (ii) as subparagraphs (A) and (B);

17 (4) in section 7(a)(3), by striking ‘‘Chairman of

18 the’’ before ‘‘Director of the Office of Thrift Super19 vision’’;

20 (5) in section 7(j)(2)(A), in the third sen21 tence—

22 (A) by striking ‘‘this section (j)(2)’’ and

23 inserting ‘‘the preceding 2 sentences’’; and

24 (B) by striking ‘‘this subsection (j)(2)’’

25 and inserting ‘‘the preceding 2 sentences’’;
45

•S 1124 IS

1 (6) in section 7(j)(7)(A), by striking

2 ‘‘monoplize’’ and inserting ‘‘monopolize’’;

3 (7) in section 7(l)(7), by striking ‘‘the ratio of

4 the value of’’ and inserting ‘‘the ratio of’’;

5 (8) in section 7(m)(5)(A) by striking ‘‘savings

6 association institution’’ and inserting ‘‘institution’’;

7 (9) in section 7(m)(7), by inserting ‘‘the’’ be8 fore ‘‘Federal’’;

9 (10) in section 8(a)(3), by striking ‘‘subpara10 graph (B)’’ and inserting ‘‘paragraph (2)(B)’’;

11 (11) in section 8(a)(7)—

12 (A) by inserting a comma after ‘‘Board of

13 Directors’’; and

14 (B) by striking ‘‘the period the period’’

15 and inserting ‘‘the period’’;

16 (12) in section 8(b)(4), by striking ‘‘subpara17 graph (3) of this subsection’’ and inserting ‘‘para18 graph (3)’’;

19 (13) in section 8(b)(6)(F), by inserting ‘‘appro20 priate Federal’’ before ‘‘banking agency’’;

21 (14) in section 8(c)(2), by striking ‘‘injuction’’

22 and inserting ‘‘injunction’’;

23 (15) in section 8(g)(2), by striking ‘‘depository

24 institution’’ each place it appears and inserting

25 ‘‘bank’’;
46

•S 1124 IS

1 (16) in section 8(o), by striking ‘‘board of direc2 tors’’ each place it appears and inserting ‘‘Board of

3 Directors’’;

4 (17) in section 8(p), by striking ‘‘banking’’ each

5 place it appears and inserting ‘‘depository’’;

6 (18) in section 8(r)(2), by striking ‘‘therof’’ and

7 inserting ‘‘thereof’’;

8 (19) in section 10(b)(1), by striking ‘‘claim’’

9 and inserting ‘‘claims’’;

10 (20) in section 10(b)(2)(B), by inserting ‘‘and’’

11 at the end;

12 (21) in section 11(d)(2)(B)(iii), by striking ‘‘is’’

13 and inserting ‘‘are’’;

14 (22) in section 11(d)(8)(B)(ii), by inserting

15 ‘‘provide’’ before ‘‘a statement’’;

16 (23) in section 11(d)(14)(B), by striking ‘‘stat17 ute of limitation’’ and inserting ‘‘statute of limita18 tions’’;

19 (24) in section 11(d)(16)(B)(iv), by striking

20 ‘‘dispositions’’ and inserting ‘‘disposition’’;

21 (25) in section 11(e)(8)(D)(v)(I), by inserting a

22 closing parenthesis after ‘‘1934’’;

23 (26) in section 11(e)(12)(B), by striking ‘‘direc24 tors or officers’’ and inserting ‘‘director’s or offi25 cer’s’’;
47

•S 1124 IS

1 (27) in section 11(f)(3)(A), by striking ‘‘TO’’ in

2 the heading and inserting ‘‘WITH’’;

3 (28) in section 11(i)(3)(A), by striking ‘‘other

4 claimant or category or claimants’’ and inserting

5 ‘‘other claimant or category of claimants’’;

6 (29) in section 11(n)(4)(E)(i), by inserting

7 ‘‘and’’ at the end;

8 (30) in section 11(n)(12)(A), by striking ‘‘sub9 paragraphs’’ and inserting ‘‘subparagraph’’;

10 (31) in the second sentence of section 11(q)(1),

11 by striking ‘‘decided’’ and inserting ‘‘held’’;

12 (32) in section 13(c)(1)(B), by striking ‘‘a in

13 default insured bank’’ and inserting ‘‘an insured

14 bank in default’’;

15 (33) in section 13(c)(2)(A)—

16 (A) by striking ‘‘another’’ and inserting

17 ‘‘an’’;

18 (B) by striking ‘‘with an insured institu19 tion’’ and inserting ‘‘with another insured de20 pository institution’’; and

21 (C) by striking ‘‘by an insured institution’’

22 and inserting ‘‘by another insured depository

23 institution’’;
48

•S 1124 IS

1 (34) in section 13(f)(2)(B)(i), by striking ‘‘the

2 in default insured bank’’ and inserting ‘‘the insured

3 bank in default’’;

4 (35) in section 13(f)(2)(B)(iii), by striking ‘‘of

5 of’’ and inserting ‘‘of’’;

6 (36) in section 13(f)(3), by striking ‘‘CLOSING’’

7 in the heading and inserting ‘‘DEFAULT’’;

8 (37) in section 13(f)(6)(A), by striking ‘‘bank

9 that has in default’’ and inserting ‘‘bank that is in

10 default’’;

11 (38) in section 13(f)(6)(B)(i), by striking the

12 semicolon at the end and inserting a period;

13 (39) in section 13(f)(7)—

14 (A) in subparagraph (A), by striking ‘‘or’’

15 at the end; and

16 (B) in subparagraph (B), by striking the

17 period at the end and inserting ‘‘; or’’;

18 (40) in section 13(f)(12)(A), by striking ‘‘is less

19 than’’ and inserting ‘‘are less than’’;

20 (41) in section 15(c)(1), by striking ‘‘OBLIGA21 TIONS LIABILITIES’’ in the heading and inserting

22 ‘‘OBLIGATIONS, GUARANTEES, AND LIABILITIES’’;

23 (42) in section 18(b), by striking ‘‘if such

24 bank’’ and inserting ‘‘if such insured depository in25 stitution’’;
49

•S 1124 IS

1 (43) in section 18(c)(1)(B), by inserting ‘‘or’’

2 at the end;

3 (44) in section 18(c)(4), by striking ‘‘other two

4 banking agencies’’ each place it appears and insert5 ing ‘‘other Federal banking agencies’’;

6 (45) in section 18(c)(6), by striking ‘‘other two

7 banking agencies’’ and inserting ‘‘other banking

8 agencies’’;

9 (46) in section 18(c)(9), by striking ‘‘with the

10 following information:’’ and inserting ‘‘with—’’;

11 (47) in section 18(f)—

12 (A) by striking ‘‘such bank’’ and inserting

13 ‘‘such insured depository institution’’; and

14 (B) by striking ‘‘the bank’’ and inserting

15 ‘‘the insured depository institution’’;

16 (48) in section 18(k)(4)(A)(ii)(II), by striking

17 ‘‘or’’ at the end;

18 (49) in section 20(a)(3), by inserting ‘‘or’’ at

19 the end;

20 (50) in section 21(c), by striking ‘‘the bank’’

21 and inserting ‘‘the insured depository institution’’;

22 (51) in section 21(d)(2), by striking ‘‘the bank’’

23 and inserting ‘‘the insured depository institution’’;

24 (52) in section 21(e), by striking ‘‘the bank’’

25 and inserting ‘‘the insured depository institution’’;
50

•S 1124 IS

1 (53) in section 25(a), by striking ‘‘the bank’’

2 each place it appears and inserting ‘‘the depository

3 institution, insured branch, or bank’’;

4 (54) in section 28(c)(2)(A)(i) by striking ‘‘, or’’

5 and inserting ‘‘; or’’;

6 (55) in section 28(d)(4)(C), by striking ‘‘sub7 paragraphs’’ and inserting ‘‘subparagraph’’;

8 (56) in section 28(e)(4), ‘‘any other’’ and in9 serting ‘‘and any other’’;

10 (57) in section 30(e)(1)(A), by striking ‘‘vend11 ers’’ and inserting ‘‘vendors’’;

12 (58) in section 31(b)(1), by striking ‘‘Board of

13 Directors’’ and inserting ‘‘board of directors’’;

14 (59) in section 33(c)(1), by striking the comma

15 at the end and inserting a semicolon;

16 (60) in section 34(a)(1)(A)(iii), by striking

17 ‘‘and’’ and inserting ‘‘or’’;

18 (61) in section 34(a)(2), by inserting the period

19 at the end;

20 (62) in section 38(f)(6), by striking

21 ‘‘Commisssion’’ and inserting ‘‘Commission’’;

22 (63) in section 40(c)(4)(A), by striking ‘‘sub23 sections (p)(12)(B) and (C)’’ and inserting ‘‘sub24 paragraphs (B) and (C) of subsection (p)(12)’’; and
51

•S 1124 IS

1 (64) in section 40(d)(8)(A), by striking ‘‘meet2 ing’’ and inserting ‘‘meeting the’’.

3 (b) FEDERAL HOME LOAN BANK ACT.—Section 21A

4 of the Federal Home Loan Bank Act (12 U.S.C. 1441a)

5 is amended—

6 (1) in subsection (a), by inserting in the head7 ing ‘‘THRIFT DEPOSITOR PROTECTION’’ before

8 ‘‘OVERSIGHT BOARD’’;

9 (2) in subsection (a)(6)(C), by inserting a pe10 riod at the end;

11 (3) in subsection (a)(11), by striking ‘‘United

12 States District Court’’ and inserting ‘‘United States

13 district court’’;

14 (4) in subsection (b)(11)(B)(iii), by striking the

15 comma after ‘‘chapter 5’’;

16 (5) in subsection (b)(11)(E)(iv)(II), by striking

17 ‘‘knowledgable’’ and inserting ‘‘knowledgeable’’;

18 (6) in subsection (b)(11)(G), by inserting ‘‘AD19 VISORY PERSONNEL.—’’ before ‘‘The Corporation

20 shall’’;

Æ

S 1124 IS——2

S 1124 IS——3

S 1124 IS——4

S 1124 IS——5