II 

113TH CONGRESS 

1ST SESSION S. 1349 

To enhance the ability of community financial institutions to foster economic 

growth and serve their communities, boost small businesses, increase 

individual savings, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 24, 2013 

Mr. MORAN (for himself, Mr. TESTER, and Mr. KIRK) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To enhance the ability of community financial institutions 

to foster economic growth and serve their communities, 

boost small businesses, increase individual savings, 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. 

4 This Act may be cited as the ‘‘Community Lending 

5 Enhancement and Regulatory Relief Act of 2013’’ or the 

6 ‘‘CLEAR Relief Act of 2013’’. 


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•S 1349 IS

1 SEC. 2. COMMUNITY BANK EXEMPTION FROM ANNUAL 

2 MANAGEMENT ASSESSMENT OF INTERNAL 

3 CONTROLS REQUIREMENT OF THE SAR4 BANES-OXLEY ACT OF 2002. 

5 Section 404 of the Sarbanes-Oxley Act of 2002 (15 

6 U.S.C. 7262) is amended by adding at the end the fol7 lowing: 

8 ‘‘(d) COMMUNITY BANK EXEMPTION.— 

9 ‘‘(1) DEFINITIONS.—In this subsection— 

10 ‘‘(A) the term ‘bank holding company’ has 

11 the same meaning as in section 2 of the Bank 

12 Holding Company Act of 1956 (12 U.S.C. 

13 1841); 

14 ‘‘(B) the term ‘insured depository institu15 tion’ has the same meaning as in section 3 of 

16 the Federal Deposit Insurance Act (12 U.S.C. 

17 1813); and 

18 ‘‘(C) the term ‘savings and loan holding 

19 company’ has the same meaning as in section 

20 10 of the Home Owners’ Loan Act (12 U.S.C. 

21 1467a). 

22 ‘‘(2) IN GENERAL.—This section and the rules 

23 prescribed under this section shall not apply in any 

24 fiscal year to any bank holding company, savings 

25 and loan holding company, or insured depository in26 stitution which, as of the end of the preceding fiscal 


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1 year, had total consolidated assets of 

2 $1,000,000,000 or less. 

3 ‘‘(3) ADJUSTMENT OF AMOUNT.—The Commis4 sion shall annually adjust the dollar amount in para5 graph (1) by an amount equal to the percentage in6 crease, for the most recent year, in total assets held 

7 by all bank holding companies, savings and loan 

8 holding companies, and insured depository institu9 tions, as reported by the Federal Deposit Insurance 

10 Corporation.’’. 

11 SEC. 3. CHANGES REQUIRED TO THE SMALL BANK HOLD12 ING COMPANY POLICY STATEMENT ON AS13 SESSMENT OF FINANCIAL AND MANAGERIAL 

14 FACTORS. 

15 (a) DEFINITIONS.—In this section— 

16 (1) the term ‘‘bank holding company’’ has the 

17 same meaning as in section 2 of the Bank Holding 

18 Company Act of 1956 (12 U.S.C. 1841); 

19 (2) the term ‘‘Board’’ means the Board of Gov20 ernors of the Federal Reserve System; 

21 (3) the term ‘‘financial institution’’ means— 

22 (A) an insured depository institution; 

23 (B) a bank holding company; 

24 (C) a savings and loan holding company; 

25 and 


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1 (D) a foreign bank subject to the Bank 

2 Holding Company Act of 1956 (12 U.S.C. 1841 

3 et seq.); 

4 (4) the term ‘‘insured depository institution’’ 

5 has the same meaning as in section 3 of the Federal 

6 Deposit Insurance Act (12 U.S.C. 1813); and 

7 (5) the term ‘‘savings and loan holding com8 pany’’ has the same meaning as in section 10 of the 

9 Home Owners’ Loan Act (12 U.S.C. 1467a). 

10 (b) FEDERAL RESERVE BOARD.—The policy state11 ment of the Board in the Small Bank Holding Company 

12 Statement in part 225 of the appendix to title 12, Code 

13 of Federal Regulations (or any successor thereto), shall 

14 apply to each financial institution that— 

15 (1) is otherwise subject to that policy state16 ment; and 

17 (2) has consolidated assets of less than 

18 $5,000,000,000. 

19 SEC. 4. ESCROW REQUIREMENTS RELATING TO CERTAIN 

20 CONSUMER CREDIT TRANSACTIONS. 

21 Section 129D(c) of the Truth in Lending Act (15 

22 U.S.C. 1639d(c)) is amended— 

23 (1) by redesignating paragraphs (1), (2), (3), 

24 and (4) as subparagraphs (A), (B), (C), and (D), reVerDate Mar 15 2010 01:04 Jul 26, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1349.IS S1349

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1 spectively, and moving the margins 2 ems to the 

2 right; 

3 (2) by striking ‘‘The Bureau’’ and inserting the 

4 following: 

5 ‘‘(1) IN GENERAL.—The Bureau’’; and 

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

7 ‘‘(2) TREATMENT OF LOANS HELD BY SMALLER

8 INSTITUTIONS.—The Bureau shall, by regulation, 

9 exempt from the requirements of subsection (a) any 

10 loan secured by a first lien on the principal dwelling 

11 of a consumer, if such loan is held by an insured de12 pository institution having assets of 

13 $10,000,000,000 or less.’’. 

14 SEC. 5. MINIMUM STANDARDS FOR RESIDENTIAL MORT15 GAGE LOANS. 

16 Section 129C(b)(2) of the Truth in Lending Act (15 

17 U.S.C. 1639c(b)(2)) is amended— 

18 (1) by adding at the end the following: 

19 ‘‘(F) SAFE HARBOR.—In this section— 

20 ‘‘(i) the term ‘qualified mortgage’ in21 cludes any mortgage loan that is originated 

22 and retained in portfolio for a period of 

23 not less than 3 years by a depository insti24 tution having less than $10,000,000,000 in 

25 total assets; and 


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1 ‘‘(ii) loans described in clause (i) shall 

2 be deemed to meet the requirements of 

3 subsection (a).’’; and 

4 (2) in subparagraph (E)— 

5 (A) by striking ‘‘The Bureau may, by reg6 ulation,’’ and inserting ‘‘The Bureau shall, by 

7 regulation,’’; and 

8 (B) by striking clause (iv) and inserting 

9 the following: 

10 ‘‘(iv) that is extended by an insured 

11 depository institution that— 

12 ‘‘(I) originates and retains the 

13 balloon loans in portfolio for a period 

14 of not less than 3 years; and 

15 ‘‘(II) together with its affiliates 

16 has less than $10,000,000,000 in 

17 total consolidated assets.’’. 

Æ 


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