`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3474 Enrolled Bill (ENR)]

        H.R.3474

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To reduce administrative requirements for insured depository 
institutions to the extent consistent with safe and sound banking 
practices, to facilitate the establishment of community development 
financial institutions, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Riegle Community 
Development and Regulatory Improvement Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; table of contents.

         TITLE I--COMMUNITY DEVELOPMENT AND CONSUMER PROTECTION

Subtitle A--Community Development Banking and Financial Institutions Act

Sec. 101. Short title.
Sec. 102. Findings and purposes.
Sec. 103. Definitions.
Sec. 104. Establishment of National Fund for Community Development 
          Banking.
Sec. 105. Applications for assistance.
Sec. 106. Community partnerships.
Sec. 107. Selection of institutions.
Sec. 108. Assistance provided by the Fund.
Sec. 109. Training.
Sec. 110. Encouragement of private entities.
Sec. 111. Collection and compilation of information.
Sec. 112. Investment of receipts and proceeds.
Sec. 113. Capitalization assistance to enhance liquidity.
Sec. 114. Incentives for depository institution participation.
Sec. 115. Recordkeeping.
Sec. 116. Special provisions with respect to institutions that are 
          supervised by Federal banking agencies.
Sec. 117. Studies and reports; examination and audit.
Sec. 118. Inspector General.
Sec. 119. Enforcement.
Sec. 120. Community Development Revolving Loan Fund for credit unions.
Sec. 121. Authorization of appropriations.

            Subtitle B--Home Ownership and Equity Protection

Sec. 151. Short title.
Sec. 152. Consumer protections for certain mortgages.
Sec. 153. Civil liability.
Sec. 154. Reverse mortgage disclosure.
Sec. 155. Regulations.
Sec. 156. Applicability.
Sec. 157. Federal Reserve study.
Sec. 158. Hearings on home equity lending.

               TITLE II--SMALL BUSINESS CAPITAL FORMATION

             Subtitle A--Small Business Loan Securitization

Sec. 201. Short title.
Sec. 202. Small business related security.
Sec. 203. Applicability of margin requirements.
Sec. 204. Borrowing in the course of business.
Sec. 205. Small business related securities as collateral.
Sec. 206. Investment by depository institutions.
Sec. 207. Preemption of State law.
Sec. 208. Insured depository institution capital requirements for 
          transfers of small business obligations.
Sec. 209. Joint study on the impact of additional securities based on 
          pooled obligations.
Sec. 210. Consistent use of financial terminology.

             Subtitle B--Small Business Capital Enhancement

Sec. 251. Findings and purposes.
Sec. 252. Definitions.
Sec. 253. Approving States for participation.
Sec. 254. Participation agreements.
Sec. 255. Terms of participation agreements.
Sec. 256. Reports.
Sec. 257. Reimbursement by the Fund.
Sec. 258. Reimbursement to the Fund.
Sec. 259. Regulations.
Sec. 260. Authorization of appropriations.
Sec. 261. Effective date.

        TITLE III--PAPERWORK REDUCTION AND REGULATORY IMPROVEMENT

Sec. 301. Incorporated definitions.
Sec. 302. Administrative consideration of burden with new regulations.
Sec. 303. Streamlining of regulatory requirements.
Sec. 304. Elimination of duplicative filings.
Sec. 305. Coordinated and unified examinations.
Sec. 306. Eighteen-month examination rule for certain small 
          institutions.
Sec. 307. Call report simplification.
Sec. 308. Repeal of publication requirements.
Sec. 309. Regulatory appeals process, ombudsman, and alternative dispute 
          resolution.
Sec. 310. Electronic filing of currency transaction reports.
Sec. 311. Bank Secrecy Act publication requirements.
Sec. 312. Exemption of business loans from Real Estate Settlement 
          Procedures Act requirements.
Sec. 313. Flexibility in choosing boards of directors.
Sec. 314. Holding company audit requirements.
Sec. 315. State regulation of real estate appraisals.
Sec. 316. Acceleration of effective date for interaffiliate 
          transactions.
Sec. 317. Collateralization of public deposits.
Sec. 318. Modification of regulatory provisions.
Sec. 319. Expedited procedures.
Sec. 320. Exemption of certain holding company formations from 
          registration under the Securities Act of 1933.
Sec. 321. Reduction of post-approval waiting periods for certain 
          acquisitions and mergers.
Sec. 322. Bankers' banks.
Sec. 323. Bank Service Corporation Act amendment.
Sec. 324. Merger transaction reports.
Sec. 325. Credit card accounts receivable sales.
Sec. 326. Limiting potential liability on foreign accounts.
Sec. 327. GAO reports.
Sec. 328. Study and report on capital standards and their impact on the 
          economy.
Sec. 329. Study on the impact of the payment of interest on reserves.
Sec. 330. Study and report on the consumer credit system.
Sec. 331. Clarification of provisions relating to administrative 
          autonomy.
Sec. 332. Exemption for business accounts.
Sec. 333. Study on check-related fraud.
Sec. 334. Insider lending.
Sec. 335. Revisions of standards.
Sec. 336. Alternative rules for radio advertising.
Sec. 337. Deposit broker registration.
Sec. 338. Amendments to the Depository Institution Management Interlocks 
          Act.
Sec. 339. Adverse information about consumers.
Sec. 340. Simplified disclosure for existing depositors.
Sec. 341. Feasibility study of data bank.
Sec. 342. Timely completion of CRA review.
Sec. 343. Time limit on agency consideration of completed applications.
Sec. 344. Waiver of right of rescission for certain refinancing 
          transactions.
Sec. 345. Clarification of RESPA disclosure requirements.
Sec. 346. Notice procedures for bank holding companies to seek approval 
          to engage in certain activities.
Sec. 347. Commercial mortgage related securities.
Sec. 348. Clarifying amendment relating to data collection.
Sec. 349. Guidelines for examinations.
Sec. 350. Revising regulatory requirements for transfers of all types of 
          assets with recourse.

                       TITLE IV--MONEY LAUNDERING

Sec. 401. Short title.
Sec. 402. Reform of CTR exemption requirements to reduce number and size 
          of reports consistent with effective law enforcement.
Sec. 403. Single designee for reporting of suspicious transactions.
Sec. 404. Improvement of identification of money laundering schemes.
Sec. 405. Negotiable instruments drawn on foreign banks subject to 
          recordkeeping and reporting requirements.
Sec. 406. Imposition of civil money penalties by appropriate Federal 
          banking agencies.
Sec. 407. Uniform State licensing and regulation of check cashing, 
          currency exchange, and money transmitting businesses.
Sec. 408. Registration of money transmitting businesses to promote 
          effective law enforcement.
Sec. 409. Uniform Federal regulation of casinos.
Sec. 410. Authority to grant exemptions to States with effective 
          regulation and enforcement.
Sec. 411. Criminal and civil penalties for structuring domestic and 
          international transactions.
Sec. 412. GAO study of cashiers' checks.
Sec. 413. Technical amendments and corrections.

                TITLE V--NATIONAL FLOOD INSURANCE REFORM

Sec. 501. Short title.

                         Subtitle A--Definitions

Sec. 511. Flood Disaster Protection Act of 1973.
Sec. 512. National Flood Insurance Act of 1968.

           Subtitle B--Compliance and Increased Participation

Sec. 521. Nonwaiver of flood purchase requirement for recipients of 
          Federal disaster assistance.
Sec. 522. Expanded flood insurance purchase requirements.
Sec. 523. Escrow of flood insurance payments.
Sec. 524. Placement of flood insurance by lenders.
Sec. 525. Penalties for failure to require flood insurance or notify.
Sec. 526. Fees for determining applicability of flood insurance purchase 
          requirements.
Sec. 527. Notice requirements.
Sec. 528. Standard hazard determination forms.
Sec. 529. Examinations regarding compliance.
Sec. 530. Financial Institutions Examination Council.
Sec. 531. Clerical amendment.

 Subtitle C--Ratings and Incentives for Community Floodplain Management 
                                Programs

Sec. 541. Community rating system and incentives for community 
          floodplain management.
Sec. 542. Funding.

                  Subtitle D--Mitigation of Flood Risks

Sec. 551. Repeal of flooded property purchase and loan program.
Sec. 552. Termination of erosion-threatened structures program.
Sec. 553. Mitigation assistance program.
Sec. 554. Establishment of National Flood Mitigation Fund.
Sec. 555. Additional coverage for compliance with land use and control 
          measures.

                         Subtitle E--Task Forces

Sec. 561. Flood Insurance Interagency Task Force.
Sec. 562. Task Force on Natural and Beneficial Functions of the 
          Floodplain.

                  Subtitle F--Miscellaneous Provisions

Sec. 571. Extension of flood insurance program.
Sec. 572. Limitation on premium increases.
Sec. 573. Maximum flood insurance coverage amounts.
Sec. 574. Flood insurance program arrangements with private insurance 
          entities.
Sec. 575. Updating of flood maps.
Sec. 576. Technical Mapping Advisory Council.
Sec. 577. Evaluation of erosion hazards.
Sec. 578. Study of economic effects of charging actuarially based 
          premium rates for pre-FIRM structures.
Sec. 579. Effective dates of policies.
Sec. 580. Agricultural structures.
Sec. 581. Implementation review by Director.
Sec. 582. Prohibited flood disaster assistance.
Sec. 583. Regulations.
Sec. 584. Relation to State and local laws.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Oversight hearings.
Sec. 602. Technical amendments to the Federal banking laws.

         TITLE I--COMMUNITY DEVELOPMENT AND CONSUMER PROTECTION
 Subtitle A--Community Development Banking and Financial Institutions 
                                  Act

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Community Development Banking 
and Financial Institutions Act of 1994''.

SEC. 102. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
        (1) many of the Nation's urban, rural, and Native American 
    communities face critical social and economic problems arising in 
    part from the lack of economic growth, people living in poverty, 
    and the lack of employment and other opportunities;
        (2) the restoration and maintenance of the economies of these 
    communities will require coordinated development strategies, 
    intensive supportive services, and increased access to equity 
    investments and loans for development activities, including 
    investment in businesses, housing, commercial real estate, human 
    development, and other activities that promote the long-term 
    economic and social viability of the community; and
        (3) community development financial institutions have proven 
    their ability to identify and respond to community needs for equity 
    investments, loans, and development services.
    (b) Purpose.--The purpose of this subtitle is to create a Community 
Development Financial Institutions Fund to promote economic 
revitalization and community development through investment in and 
assistance to community development financial institutions, including 
enhancing the liquidity of community development financial 
institutions.

SEC. 103. DEFINITIONS.

    For purposes of this subtitle, the following definitions shall 
apply:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Fund appointed under section 104(b).
        (2) Appropriate federal banking agency.--The term ``appropriate 
    Federal banking agency'' has the same meaning as in section 3 of 
    the Federal Deposit Insurance Act, and also includes the National 
    Credit Union Administration Board with respect to insured credit 
    unions.
        (3) Affiliate.--The term ``affiliate'' has the same meaning as 
    in section 2(k) of the Bank Holding Company Act of 1956.
        (4) Board.--The term ``Board'' means the Community Development 
    Advisory Board established under section 104(d).
        (5) Community development financial institution.--
            (A) In general.--The term ``community development financial 
        institution'' means a person (other than an individual) that--
                (i) has a primary mission of promoting community 
            development;
                (ii) serves an investment area or targetedP population;
                (iii) provides development services in conjunction with 
            equity investments or loans, directly or through a 
            subsidiary or affiliate;
                (iv) maintains, through representation on its governing 
            board or otherwise, accountability to residents of its 
            investment area or targeted population; and
                (v) is not an agency or instrumentality of the United 
            States, or of any State or political subdivision of a 
            State.
            (B) Conditions for qualification of holding companies.--
                (i) Consolidated treatment.--A depository institution 
            holding company may qualify as a community development 
            financial institution only if the holding company and the 
            subsidiaries and affiliates of the holding company 
            collectively satisfy the requirements of subparagraph (A).
                (ii) Exclusion of subsidiary or affiliate for failure 
            to meet consolidated treatment rule.--No subsidiary or 
            affiliate of a depository institution holding company may 
            qualify as a community development financial institution if 
            the holding company and the subsidiaries and affiliates of 
            the holding company do not collectively meet the 
            requirements of subparagraph (A).
            (C) Conditions for subsidiaries.--No subsidiary of an 
        insured depository institution may qualify as a community 
        development financial institution if the insured depository 
        institution and its subsidiaries do not collectively meet the 
        requirements of subparagraph (A).
        (6) Community partner.--The term ``community partner'' means a 
    person (other than an individual) that provides loans, equity 
    investments, or development services, including a depository 
    institution holding company, an insured depository institution, an 
    insured credit union, a nonprofit organization, a State or local 
    government agency, a quasi-governmental entity, and an investment 
    company authorized to operate pursuant to the Small Business 
    Investment Act of 1958.
        (7) Community partnership.--The term ``community partnership'' 
    means an agreement between a community development financial 
    institution and a community partner to provide development 
    services, loans, or equity investments, to an investment area or 
    targeted population.
        (8) Depository institution holding company.--The term 
    ``depository institution holding company'' has the same meaning as 
    in section 3 of the Federal Deposit Insurance Act.
        (9) Development services.--The term ``development services'' 
    means activities that promote community development and are 
    integral to lending or investment activities, including--
            (A) business planning;
            (B) financial and credit counseling; and
            (C) marketing and management assistance.
        (10) Fund.--The term ``Fund'' means the Community Development 
    Financial Institutions Fund established under section 104(a).
        (11) Indian reservation.--The term ``Indian reservation'' has 
    the same meaning as in section 4(10) of the Indian Child Welfare 
    Act of 1978, and shall include land held by incorporated Native 
    groups, regional corporations, and village corporations, as defined 
    in or established pursuant to the Alaska Native Claims Settlement 
    Act, public domain Indian allotments, and former Indian 
    reservations in the State of Oklahoma.
        (12) Indian tribe.--The term ``Indian tribe'' means any Indian 
    tribe, band, pueblo, nation, or other organized group or community, 
    including any Alaska Native village or regional or village 
    corporation, as defined in or established pursuant to the Alaska 
    Native Claims Settlement Act, which is recognized as eligible for 
    the special programs and services provided by the United States to 
    Indians because of their status as Indians.
        (13) Insured community development financial institution.--The 
    term ``insured community development financial institution'' means 
    any community development financial institution that is an insured 
    depository institution or an insured credit union.
        (14) Insured credit union.--The term ``insured credit union'' 
    has the same meaning as in section 101(7) of the Federal Credit 
    Union Act.
        (15) Insured depository institution.--The term ``insured 
    depository institution'' has the same meaning as in section 3 of 
    the Federal Deposit Insurance Act.
        (16) Investment area.--The term ``investment area'' means a 
    geographic area (or areas) including an Indian reservation that--
            (A)(i) meets objective criteria of economic distress 
        developed by the Fund, which may include the percentage of low-
        income families or the extent of poverty, the rate of 
        unemployment or underemployment, rural population outmigration, 
        lag in population growth, and extent of blight and 
        disinvestment; and
            (ii) has significant unmet needs for loans or equity 
        investments; or
            (B) encompasses or is located in an empowerment zone or 
        enterprise community designated under section 1391 of the 
        Internal Revenue Code of 1986.
        (17) Low-income.--The term ``low-income'' means having an 
    income, adjusted for family size, of not more than--
            (A) for metropolitan areas, 80 percent of the area median 
        income; and
            (B) for nonmetropolitan areas, the greater of--
                (i) 80 percent of the area median income; or
                (ii) 80 percent of the statewide nonmetropolitan area 
            median income.
        (18) State.--The term ``State'' has the same meaning as in 
    section 3 of the Federal Deposit Insurance Act.
        (19) Subsidiary.--The term ``subsidiary'' has the same meaning 
    as in section 3 of the Federal Deposit Insurance Act, except that a 
    community development financial institution that is a corporation 
    shall not be considered to be a subsidiary of any insured 
    depository institution or depository institution holding company 
    that controls less than 25 percent of any class of the voting 
    shares of such corporation, and does not otherwise control in any 
    manner the election of a majority of the directors of the 
    corporation.
        (20) Targeted population.--The term ``targeted population'' 
    means individuals, or an identifiable group of individuals, 
    including an Indian tribe, who--
            (A) are low-income persons; or
            (B) otherwise lack adequate access to loans or equity 
        investments.
        (21) Training program.--The term ``training program'' means the 
    training program operated by the Fund under section 109.
    SEC. 104. ESTABLISHMENT OF NATIONAL FUND FOR COMMUNITY DEVELOPMENT 
      BANKING.
    (a) Establishment.--
        (1) In general.--There is established a corporation to be known 
    as the Community Development Financial Institutions Fund that shall 
    have the duties and responsibilities specified by this subtitle and 
    subtitle B of title II. The Fund shall have succession until 
    dissolved. The offices of the Fund shall be in Washington, D.C. The 
    Fund shall not be affiliated with or be within any other agency or 
    department of the Federal Government.
        (2) Wholly owned government corporation.--The Fund shall be a 
    wholly owned Government corporation in the executive branch and 
    shall be treated in all respects as an agency of the United States, 
    except as otherwise provided in this subtitle.
    (b) Management of Fund.--
        (1) Appointment of administrator.--The management of the Fund 
    shall be vested in an Administrator, who shall be appointed by the 
    President, by and with the advice and consent of the Senate. The 
    Administrator shall not engage in any other business or employment 
    during service as the Administrator.
        (2) Chief financial officer.--The Administrator shall appoint a 
    chief financial officer, who shall have the authority and functions 
    of an agency Chief Financial Officer under section 902 of title 31, 
    United States Code. In the event of a vacancy in the position of 
    the Administrator or during the absence or disability of the 
    Administrator, the chief financial officer shall perform the duties 
    of the position of Administrator.
        (3) Other officers and employees.--The Administrator may 
    appoint such other officers and employees of the Fund as the 
    Administrator determines to be necessary or appropriate.
        (4) Expedited hiring.--During the 2-year period beginning on 
    the date of enactment of this Act, the Administrator may--
            (A) appoint and terminate the individuals referred to in 
        paragraphs (2) and (3) without regard to the civil service laws 
        and regulations; and
            (B) fix the compensation of the individuals referred to in 
        paragraph (3) without regard to the provisions of chapter 51 
        and subchapter III of chapter 53 of title 5, United States 
        Code, relating to classification of positions and General 
        Schedule pay rates, except that the rate of pay for such 
        individuals may not exceed the rate payable for level V of the 
        Executive Schedule under section 5316 of such title.
    (c) General Powers.--In carrying out the functions of the Fund, the 
Administrator--
        (1) shall have all necessary and proper authority to carry out 
    this subtitle and subtitle B of title II;
        (2) shall have the power to adopt, alter, and use a corporate 
    seal for the Fund, which shall be judicially noticed;
        (3) may adopt, amend, and repeal bylaws, rules, and regulations 
    governing the manner in which business of the Fund may be conducted 
    and such rules and regulations as may be necessary or appropriate 
    to implement this subtitle and subtitle B of title II;
        (4) may enter into, perform, and enforce such agreements, 
    contracts, and transactions as may be deemed necessary or 
    appropriate to the conduct of activities authorized under this 
    subtitle and subtitle B of title II;
        (5) may determine the character of and necessity for 
    expenditures of the Fund and the manner in which they shall be 
    incurred, allowed, and paid;
        (6) may utilize or employ the services of personnel of any 
    agency or instrumentality of the United States with the consent of 
    the agency or instrumentality concerned on a reimbursable or 
    nonreimbursable basis; and
        (7) may execute all instruments necessary or appropriate in the 
    exercise of any of the functions of the Fund under this subtitle 
    and subtitle B of title II and may delegate to the officers of the 
    Fund such of the powers and responsibilities of the Administrator 
    as the Administrator deems necessary or appropriate for the 
    administration of the Fund.
    (d) Advisory Board.--
        (1) Establishment.--There is established an advisory board to 
    the Fund to be known as the Community Development Advisory Board, 
    which shall be operated in accordance with the provisions of the 
    Federal Advisory Committee Act, except that section 14 of that Act 
    does not apply to the Board.
        (2) Membership.--The Board shall consist of 15 members, 
    including--
            (A) the Secretary of Agriculture or his or her designee;
            (B) the Secretary of Commerce or his or her designee;
            (C) the Secretary of Housing and Urban Development or his 
        or her designee;
            (D) the Secretary of the Interior or his or her designee;
            (E) the Secretary of the Treasury or his or her designee;
            (F) the Administrator of the Small Business Administration 
        or his or her designee; and
            (G) 9 private citizens, appointed by the President, who 
        shall be selected, to the maximum extent practicable, to 
        provide for national geographic representation and racial, 
        ethnic, and gender diversity, including--
                (i) 2 individuals who are officers of existing 
            community development financial institutions;
                (ii) 2 individuals who are officers of insured 
            depository institutions;
                (iii) 2 individuals who are officers of national 
            consumer or public interest organizations;
                (iv) 2 individuals who have expertise in community 
            development; and
                (v) 1 individual who has personal experience and 
            specialized expertise in the unique lending and community 
            development issues confronted by Indian tribes on Indian 
            reservations.
        (3) Chairperson.--The members of the Board specified in 
    paragraph (2)(G) shall select, by majority vote, a chairperson of 
    the Board, who shall serve for a term of 2 years.
        (4) Board function.--It shall be the function of the Board to 
    advise the Administrator on the policies of the Fund regarding 
    activities under this subtitle. The Board shall not advise the 
    Administrator on the granting or denial of any particular 
    application.
        (5) Terms of private members.--
            (A) In general.--Each member of the Board appointed under 
        paragraph (2)(G) shall serve for a term of 4 years.
            (B) Vacancies.--Any member appointed to fill a vacancy 
        occurring prior to the expiration of the term for which the 
        previous member was appointed shall be appointed for the 
        remainder of such term. Members may continue to serve following 
        the expiration of their terms until a successor is appointed.
        (6) Meetings.--The Board shall meet at least annually and at 
    such other times as requested by the Administrator or the 
    chairperson. A majority of the members of the Board shall 
    constitute a quorum.
        (7) Reimbursement for expenses.--The members of the Board may 
    receive reimbursement for travel, per diem, and other necessary 
    expenses incurred in the performance of their duties, in accordance 
    with the Federal Advisory Committee Act.
        (8) Costs and expenses.--The Fund shall provide to the Board 
    all necessary staff and facilities.
    (e) Conforming Amendments.--Section 9101(3) of title 31, United 
States Code, is amended--
        (1) by redesignating subparagraphs (B) through (M) as 
    subparagraphs (C) through (N), respectively; and
        (2) by inserting after subparagraph (A) the following new 
    subparagraph:
            ``(B) the Community Development Financial Institutions 
        Fund;''.
    (f) Government Corporation Control Act Exemption.--Section 9107(b) 
of title 31, United States Code, shall not apply to deposits of the 
Fund made pursuant to section 108.
    (g) Limitation of Fund and Federal Liability.--The liability of the 
Fund and the United States Government arising out of any investment in 
a community development financial institution in accordance with this 
subtitle shall be limited to the amount of the investment. The Fund 
shall be exempt from any assessments and other liabilities that may be 
imposed on controlling or principal shareholders by any Federal law or 
the law of any State, Territory, or the District of Columbia. Nothing 
in this subsection shall affect the application of any Federal tax law.
    (h) Prohibition on Issuance of Securities.--The Fund may not issue 
stock, bonds, debentures, notes, or other securities.
    (i) Compensation.--Title 5, United States Code, is amended in 
section 5313, by adding at the end the following:
        ``Administrator of the Community Development Financial 
    Institutions Fund.''.
    (j) Assisted Institutions Not United States Instrumentalities.--A 
community development financial institution or other organization that 
receives assistance pursuant to this subtitle shall not be deemed to be 
an agency, department, or instrumentality of the United States.
    (k) Transition Period.--
        (1) In general.--During the transition period, the Secretary of 
    the Treasury may--
            (A) assist in the establishment of the administrative 
        functions of the Fund listed in paragraph (2); and
            (B) hire not more than 6 individuals to serve as employees 
        of the Fund during the transition period.
        (2) Continued service.--Individuals hired in accordance with 
    paragraph (1)(B) may continue to serve as employees of the Fund 
    after the transition period.
        (3) Administrative functions.--The administrative functions 
    referred to in paragraph (1)(A) shall be limited to--
            (A) establishing accounting, information, and recordkeeping 
        systems for the Fund; and
            (B) procuring office space, equipment, and supplies.
        (4) Expedited hiring.--During the transition period, the 
    Secretary of the Treasury may--
            (A) appoint and terminate the individuals referred to in 
        paragraph (1)(B) without regard to the civil service laws and 
        regulations; and
            (B) fix the compensation of the individuals referred to in 
        paragraph (1)(B) without regard to the provisions of chapter 51 
        and subchapter III of chapter 53 of title 5, United States 
        Code, relating to classification of positions and General 
        Schedule pay rates, except that the rate of pay for such 
        individuals may not exceed the rate payable for level V of the 
        Executive Schedule under section 5316 of such title.
        (5) Certain employees.--During the transition period, employees 
    of the Department of the Treasury may only comprise less than one-
    half of the total number of individuals hired in accordance with 
    paragraph (1)(B).
        (6) Transition expenses.--Amounts previously appropriated to 
    the Department of the Treasury may be used to pay obligations and 
    expenses of the Fund incurred under this section, and such amounts 
    may be reimbursed by the Fund to the Department of the Treasury 
    from amounts appropriated to the Fund for fiscal year 1995.
        (7) Definition.--For purposes of this subsection, the term 
    ``transition period'' means the period beginning on the date of 
    enactment of this Act and ending on the date on which the 
    Administrator is appointed.

SEC. 105. APPLICATIONS FOR ASSISTANCE.

    (a) Form and Procedures.--An application for assistance under this 
subtitle shall be submitted in such form and in accordance with such 
procedures as the Fund shall establish.
    (b) Minimum Requirements.--Except as provided in sections 106 and 
113, the Fund shall require an application--
        (1) to establish that the applicant is, or will be, a community 
    development financial institution;
        (2) to include a comprehensive strategic plan for the 
    organization that contains--
            (A) a business plan of not less than 5 years in duration 
        that demonstrates that the applicant will be properly managed 
        and will have the capacity to operate as a community 
        development financial institution that will not be dependent 
        upon assistance from the Fund for continued viability;
            (B) an analysis of the needs of the investment area or 
        targeted population and a strategy for how the applicant will 
        attempt to meet those needs;
            (C) a plan to coordinate use of assistance from the Fund 
        with existing Federal, State, local, and tribal government 
        assistance programs, and private sector financial services;
            (D) an explanation of how the proposed activities of the 
        applicant are consistent with existing economic, community, and 
        housing development plans adopted by or applicable to an 
        investment area or targeted population; and
            (E) a description of how the applicant will coordinate with 
        community organizations and financial institutions which will 
        provide equity investments, loans, secondary markets, or other 
        services to investment areas or targeted populations;
        (3) to include a detailed description of the applicant's plans 
    and likely sources of funds to match the amount of assistance 
    requested from the Fund;
        (4) in the case of an applicant that has previously received 
    assistance under this subtitle, to demonstrate that the applicant--
            (A) has substantially met its performance goals and 
        otherwise carried out its responsibilities under this subtitle 
        and the assistance agreement; and
            (B) will expand its operations into a new investment area 
        or serve a new targeted population, offer more products or 
        services, or increase the volume of its business;
        (5) in the case of an applicant with a prior history of serving 
    investment areas or targeted populations, to demonstrate that the 
    applicant--
            (A) has a record of success in serving investment areas or 
        targeted populations; and
            (B) will expand its operations into a new investment area 
        or to serve a new targeted population, offer more products or 
        services, or increase the volume of its current business; and
        (6) to include such other information as the Fund deems 
    appropriate.
    (c) Preapplication Outreach Program.--The Fund shall provide an 
outreach program to identify and provide information to potential 
applicants and may provide technical assistance to potential 
applicants, but shall not assist in the preparation of anyP 
application.

SEC. 106. COMMUNITY PARTNERSHIPS.

    (a) Application.--An application for assistance may be filed 
jointly by a community development financial institution and a 
community partner to carry out a community partnership.
    (b) Application Requirements.--The Fund shall require a community 
partnership application--
        (1) to meet the minimum requirements established for community 
    development financial institutions under section 105(b), except 
    that the criteria specified in paragraphs (1) and (2)(A) of section 
    105(b) shall not apply to the communityP partner;
        (2) to describe how each coapplicant will participate in 
    carrying out the community partnership and how the partnership will 
    enhance activities serving the investment area or targeted 
    population; and
        (3) to demonstrate that the community partnership activities 
    are consistent with the strategic plan submitted by the community 
    development financial institution coapplicant.
    (c) Selection Criteria.--The Fund shall consider a community 
partnership application based on--
        (1) the community development financial institution 
    coapplicant--
            (A) meeting the minimum selection criteria described in 
        section 105; and
            (B) satisfying the selection criteria of section 107;
        (2) the extent to which the community partner coapplicant will 
    participate in carrying out the partnership;
        (3) the extent to which the community partnership will enhance 
    the likelihood of success of the community development financial 
    institution coapplicant's strategic plan; and
        (4) the extent to which service to the investment area or 
    targeted population will be better performed by a partnership as 
    opposed to the individual community development financial 
    institution coapplicant.
    (d) Limitation on Distribution of Assistance.--Assistance provided 
upon approval of an application under this section shall be distributed 
only to the community development financial institution coapplicant, 
and shall not be used to fund any activities carried out directly by 
the community partner or an affiliate or subsidiary thereof.
    (e) Other Requirements and Limitations.--All other requirements and 
limitations imposed by this subtitle on a community development 
financial institution assisted under this subtitle shall apply (in the 
manner that the Fund determines to be appropriate) to assistance 
provided to carry out community partnerships. The Fund may establish 
additional guidelines and restrictions on the use of Federal funds to 
carry out community partnerships.

SEC. 107. SELECTION OF INSTITUTIONS.

    (a) Selection Criteria.--Except as provided in section 113, the 
Fund shall, in its sole discretion, select community development 
financial institution applicants meeting the requirements of section 
105 for assistance based on--
        (1) the likelihood of success of the applicant in meeting the 
    goals of its comprehensive strategic plan;
        (2) the experience and background of the management team;
        (3) the extent of need for equity investments, loans, and 
    development services within the investment areas or targeted 
    populations;
        (4) the extent of economic distress within the investment areas 
    or the extent of need within the targeted populations, as those 
    factors are measured by objective criteria;
        (5) the extent to which the applicant will concentrateP its 
    activities on serving its investment areas or targetedP 
    populations;
        (6) the amount of firm commitments to meet or exceed the 
    matching requirements and the likely success of the plan for 
    raising the balance of the match;
        (7) the extent to which the matching funds are derived from 
    private sources;
        (8) the extent to which the proposed activities will expand 
    economic opportunities within the investment areas or the targeted 
    populations;
        (9) whether the applicant is, or will become, an insured 
    community development financial institution;
        (10) the extent of support from the investment areas or 
    targeted populations;
        (11) the extent to which the applicant is, or will be, 
    community-owned or community-governed;
        (12) the extent to which the applicant will increase its 
    resources through coordination with other institutions or 
    participation in a secondary market;
        (13) in the case of an applicant with a prior history of 
    serving investment areas or targeted populations, the extent of 
    success in serving them; and
        (14) other factors deemed to be appropriate by the Fund.
    (b) Geographic Diversity.--In selecting applicants for assistance, 
the Fund shall seek to fund a geographically diverse group of 
applicants, which shall include applicants from metropolitan, 
nonmetropolitan, and rural areas.

SEC. 108. ASSISTANCE PROVIDED BY THE FUND.

    (a) Forms of Assistance.--
        (1) In general.--The Fund may provide--
            (A) financial assistance through equity investments, 
        deposits, credit union shares, loans, and grants; and
            (B) technical assistance--
                (i) directly;
                (ii) through grants; or
                (iii) by contracting with organizations that possess 
            expertise in community development finance, without regard 
            to whether the organizations receive or are eligible to 
            receive assistance under this subtitle.
        (2) Equity investments.--
            (A) Limitation on equity investments.--The Fund shall not 
        own more than 50 percent of the equity of a community 
        development financial institution and may not control the 
        operations of such institution. The Fund may hold only 
        transferable, nonvoting equity investments in the institution. 
        Such equity investments may provide for convertibility to 
        voting stock upon transfer by the Fund.
            (B) Fund deemed not to control.--Notwithstanding any other 
        provision of law, the Fund shall not be deemed to control a 
        community development financial institution by reason of any 
        assistance provided under this subtitle for the purpose of any 
        other applicable law to the extent that the Fund complies with 
        subparagraph (A). Nothing in this subparagraph shall affect the 
        application of any Federal tax law.
        (3) Deposits.--Deposits made pursuant to this section in an 
    insured community development financial institution shall not be 
    subject to any requirement for collateral or security.
        (4) Limitations on obligations.--Direct loan obligations may be 
    incurred by the Fund only to the extent that appropriations of 
    budget authority to cover their cost, as defined in section 502(5) 
    of the Congressional Budget Act of 1974, are made in advance.
    (b) Uses of Financial Assistance.--
        (1) In general.--Financial assistance made available under this 
    subtitle may be used by assisted community development financial 
    institutions to serve investment areas or targeted populations by 
    developing or supporting--
            (A) commercial facilities that promote revitalization, 
        community stability, or job creation or retention;
            (B) businesses that--
                (i) provide jobs for low-income people or are owned by 
            low-income people; or
                (ii) enhance the availability of products and services 
            to low-income people;
            (C) community facilities;
            (D) the provision of basic financial services;
            (E) housing that is principally affordable to low-income 
        people, except that assistance used to facilitate homeownership 
        shall only be used for services and lending products--
                (i) that serve low-income people; and
                (ii) that--

                    (I) are not provided by other lenders in the area; 
                or
                    (II) complement the services and lending products 
                provided by other lenders that serve the investment 
                area or targeted population; and

            (F) other businesses and activities deemed appropriate by 
        the Fund.
        (2) Limitations.--No assistance made available under this 
    subtitle may be expended by a community development financial 
    institution (or an organization receiving assistance under section 
    113) to pay any person to influence or attempt to influence any 
    agency, elected official, officer, or employee of a State or local 
    government in connection with the making, award, extension, 
    continuation, renewal, amendment, or modification of any State or 
    local government contract, grant, loan, or cooperative agreement 
    (as such terms are defined in section 1352 of title 31, United 
    States Code).
    (c) Uses of Technical Assistance.--
        (1) Types of activities.--Technical assistance may be used for 
    activities that enhance the capacity of a community development 
    financial institution, such as training of management and other 
    personnel and development of programs and investment or loan 
    products.
        (2) Availability of technical assistance.--The Fund may provide 
    technical assistance, regardless of whether or not the recipient 
    also receives financial assistance under thisP section.
    (d) Amount of Assistance.--
        (1) In general.--Except as provided in paragraph (2), the Fund 
    may provide not more than $5,000,000 of assistance, in the 
    aggregate, during any 3-year period to any 1 community development 
    financial institution and its subsidiaries andP affiliates.
        (2) Exception.--The Fund may provide not more than $3,750,000 
    of assistance in addition to the amount specified in paragraph (1) 
    during the same 3-year period to an existing community development 
    financial institution that proposes to establish a subsidiary or 
    affiliate for the purpose of serving an investment area or targeted 
    population outside of any State and outside of any metropolitan 
    area presently served by the institution, if--
            (A) the subsidiary or affiliate--
                (i) would be a community development financial 
            institution; and
                (ii) independently--

                    (I) meets the selection criteria described in 
                section 105; and

                    (II) satisfies the selection criteria of section 
                107; and

            (B) no other application for assistance to serve the 
        investment area or targeted population has been submitted to 
        the Administrator within a reasonable period of time preceding 
        the date of receipt of the application at issue.
        (3) Timing of assistance.--Assistance may be provided as 
    described in paragraphs (1) and (2) in a lump sum or over a period 
    of time, as determined by the Fund.
    (e) Matching Requirements.--
        (1) In general.--Assistance other than technical assistance 
    shall be matched with funds from sources other than the Federal 
    Government on the basis of not less than one dollar for each dollar 
    provided by the Fund. Such matching funds shall be at least 
    comparable in form and value to assistance provided by the Fund. 
    The Fund shall provide no Passistance (other than technical 
    assistance) until a community development financial institution has 
    secured firm commitments for the matching funds required.
        (2) Exception.--In the case of an applicant with severe 
    constraints on available sources of matching funds, the Fund may 
    permit an applicant to comply with the matching requirements of 
    paragraph (1) by--
            (A) reducing such matching requirement by 50 percent; or
            (B) permitting an applicant to provide matching funds in a 
        form to be determined at the discretion of the Fund, if such 
        applicant--
                (i) has total assets of less than $100,000;
                (ii) serves nonmetropolitan or rural areas; and
                (iii) is not requesting more than $25,000 in 
            assistance.
        (3) Limitation.--Not more than 25 percent of the total funds 
    disbursed in any fiscal year by the Fund may be matched as 
    authorized under paragraph (2).
        (4) Construction of ``federal government funds''.--For purposes 
    of this subsection, notwithstanding section 105(a)(9) of the 
    Housing and Community Development Act of 1974, funds provided 
    pursuant to such Act shall be considered to be Federal Government 
    funds.
    (f) Terms and Conditions.--
        (1) Soundness of unregulated institutions.--The Fund shall--
            (A) ensure, to the maximum extent practicable, that each 
        community development financial institution (other than an 
        insured community development financial institution or 
        depository institution holding company) assisted under this 
        subtitle is financially and managerially sound and maintains 
        appropriate internal controls;
            (B) require such institution to submit, not less than once 
        during each 18-month period, a statement of financial condition 
        audited by an independent certified public accountant as part 
        of the report required by section 115(e)(1); and
            (C) require that all assistance granted under this section 
        is used by the community development financial institution or 
        community development partnership in a manner consistent with 
        the purposes of this subtitle.
        (2) Assistance agreement.--
            (A) In general.--Before providing any assistance under this 
        subtitle, the Fund and each community development financial 
        institution to be assisted shall enter into an agreement that 
        requires the institution to comply with performance goals and 
        abide by other terms and conditions pertinent to assistance 
        received under this subtitle.
            (B) Performance goals.--Performance goals shall be 
        negotiated between the Fund and each community development 
        financial institution receiving assistance based upon the 
        strategic plan submitted pursuant to section 105(b)(2). Such 
        goals may be modified with the consent of the parties, or as 
        provided in subparagraph (C). Performance goals for insured 
        community development financial institutions shall be 
        determined in consultation with the appropriate Federal banking 
        agency.
            (C) Sanctions.--The agreement shall provide that, in the 
        event of fraud, mismanagement, noncompliance with this 
        subtitle, or noncompliance with the terms of the agreement, the 
        Fund, in its discretion, may--
                (i) require changes to the performance goals imposed 
            pursuant to subparagraph (B);
                (ii) require changes to the strategic plan submitted 
            pursuant to section 105(b)(2);
                (iii) revoke approval of the application;
                (iv) reduce or terminate assistance;
                (v) require repayment of assistance;
                (vi) bar an applicant from reapplying for assistance 
            from the Fund; and
                (vii) take such other actions as the Fund deems 
            appropriate.
            (D) Consultation with tribal governments.--In reviewing the 
        performance of any assisted community development financial 
        institution, the investment area of which includes an Indian 
        reservation, or the targeted population of which includes an 
        Indian tribe, the Fund shall consult with, and seek input from, 
        any appropriate tribal government.
    (g) Authority To Sell Equity Investments and Loans.--The Fund may, 
at any time, sell its equity investments and loans, but the Fund shall 
retain the power to enforce limitations on assistance entered into in 
accordance with the requirements of this subtitle until the performance 
goals related to the investment or loan have been met.
    (h) No Authority To Limit Supervision and Regulation.--Nothing in 
this subtitle shall affect any authority of the appropriate Federal 
banking agency to supervise and regulate any institution or company.

SEC. 109. TRAINING.

    (a) In General.--The Fund may operate a training program to 
increase the capacity and expertise of community development financial 
institutions and other members of the financial services industry to 
undertake community development finance activities.
    (b) Program Activities.--The training program shall provide 
educational programs to assist community development financial 
institutions and other members of the financial services industry in 
developing lending and investment products, underwriting and servicing 
loans, managing equity investments, and providing development services 
targeted to areas of economic distress, low-income persons, and persons 
who lack adequate access to loans and equity investments.
    (c) Participation.--The training program shall be made available to 
community development financial institutions and other members of the 
financial services industry that serve or seek to serve areas of 
economic distress, low-income persons, and persons who lack adequate 
access to loans and equity investments.
    (d) Contracting.--The Fund may offer the training program described 
in this section directly or through a contract with other 
organizations. The Fund may contract to provide the training program 
through organizations that possess special expertise in community 
development, without regard to whether the organizations receive or are 
eligible to receive assistance under this subtitle.
    (e) Coordination.--The Fund shall coordinate with other appropriate 
Federal departments or agencies that operate similar training programs 
in order to prevent duplicative efforts.
    (f) Regulatory Fee for Providing Training Services.--
        (1) General rule.--The Fund may, at the discretion of the 
    Administrator and in accordance with this subsection, assess and 
    collect regulatory fees solely to cover the costs of the Fund in 
    providing training services under a training program operated in 
    accordance with this section.
        (2) Persons subject to fee.--Fees may be assessed under 
    paragraph (1) only on persons who participate in the training 
    program.
        (3) Limitation on manner of collection.--Fees may be assessed 
    and collected under this subsection only in such manner as may 
    reasonably be expected to result in the collection of an aggregate 
    amount of fees during any fiscal year which does not exceed the 
    aggregate costs of the Fund for such year in providing training 
    services under a training program operated in accordance with this 
    section
        (4) Limitation on amount of fee.--The amount of any fee 
    assessed under this subsection on any person may not exceed the 
    amount which is reasonably based on the proportion of the training 
    services provided under a training program operated in accordance 
    with this section which relate to such person.

SEC. 110. ENCOURAGEMENT OF PRIVATE ENTITIES.

    The Fund may facilitate the organization of corporations in which 
the Federal Government has no ownership interest. The purpose of any 
such entity shall be to assist community development financial 
institutions in a manner that is complementary to the activities of the 
Fund under this subtitle. Any such entity shall be managed exclusively 
by persons not employed by the Federal Government or any agency or 
instrumentality thereof, or by any State or local government or any 
agency or instrumentality thereof.

SEC. 111. COLLECTION AND COMPILATION OF INFORMATION.

    The Fund shall--
        (1) collect and compile information pertinent to community 
    development financial institutions that will assist in creating, 
    developing, expanding, and preserving such institutions; and
        (2) make such information available to promote the purposes of 
    this subtitle.

SEC. 112. INVESTMENT OF RECEIPTS AND PROCEEDS.

    (a) Establishment of Account.--Any dividends on equity investments 
and proceeds from the disposition of investments, deposits, or credit 
union shares that are received by the Fund as a result of assistance 
provided pursuant to section 108 or 113, and any fees received pursuant 
to section 109(f) shall be deposited and accredited to an account of 
the Fund in the United States Treasury (hereafter in this section 
referred to as ``the account'') established to carry out the purpose of 
this subtitle.
    (b) Investments.--Upon request of the Administrator, the Secretary 
of the Treasury shall invest amounts deposited in the account in public 
debt securities with maturities suitable to the needs of the Fund, as 
determined by the Administrator, and bearing interest at rates 
determined by the Secretary of the Treasury, comparable to current 
market yields on outstanding marketable obligations of the United 
States of similar maturities.
    (c) Availability.--Amounts deposited into the account and interest 
earned on such amounts pursuant to this section shall be available to 
the Fund until expended.

SEC. 113. CAPITALIZATION ASSISTANCE TO ENHANCE LIQUIDITY.

    (a) Assistance.--
        (1) In general.--The Fund may provide assistance for the 
    purpose of providing capital to organizations to purchase loans or 
    otherwise enhance the liquidity of community development financial 
    institutions, if--
            (A) the primary purpose of such organizations is to promote 
        community development; and
            (B) any assistance received is matched with funds--
                (i) from sources other than the Federal Government;
                (ii) on the basis of not less than one dollar for each 
            dollar provided by the Fund; and
                (iii) that are comparable in form and value to the 
            assistance provided by the Fund.
        (2) Limitation on other assistance.--An organization that 
    receives assistance under this section may not receive other 
    financial or technical assistance under this subtitle.
        (3) Construction of federal government funds.--For purposes of 
    this subsection, notwithstanding section 105(a)(9) of the Housing 
    and Community Development Act of 1974, funds provided pursuant to 
    such Act shall be considered to be Federal Government funds.
    (b) Selection.--The selection of organizations to receive 
assistance under this section shall be at the discretion of the Fund 
and in accordance with criteria established by the Fund. In 
establishing such criteria, the Fund shall take into account the 
criteria contained in sections 105(b) and 107, as appropriate.
    (c) Amount of Assistance.--The Fund may provide a total of not more 
than $5,000,000 of assistance to an organization or its subsidiaries or 
affiliates under this section during any 3-year period. Assistance may 
be provided in a lump sum or over a period of time, as determined by 
the Fund.
    (d) Audit and Report Requirements.--Organizations that receive 
assistance from the Fund in accordance with this section shall--
        (1) submit to the Fund, not less than once in every 18-month 
    period, financial statements audited by an independent certified 
    public accountant, as part of the report required by paragraph (2);
        (2) submit an annual report on its activities; and
        (3) keep such records as may be necessary to disclose the 
    manner in which any assistance under this section is used.
    (e) Limitations on Liability.--
        (1) Liability of fund.--The liability of the Fund and the 
    United States Government arising out of the provision of assistance 
    to any organization in accordance with this section shall be 
    limited to the amount of such assistance. The Fund shall be exempt 
    from any assessments and any other liabilities that may be imposed 
    on controlling or principal shareholders by any Federal law or the 
    law of any State, or territory. Nothing in this paragraph shall 
    affect the application of Federal tax law.
        (2) Liability of government.--This section does not oblige the 
    Federal Government, either directly or indirectly, to provide any 
    funds to any organization assisted pursuant to this section, or to 
    honor, reimburse, or otherwise guarantee any obligation or 
    liability of such an organization. This section shall not be 
    construed to imply that any such organization or any obligations or 
    securities of any such organization are backed by the full faith 
    and credit of the United States.
    (f) Use of Proceeds.--Any proceeds from the sale of loans by an 
organization assisted under this section shall be used by the seller 
for community development purposes.

SEC. 114. INCENTIVES FOR DEPOSITORY INSTITUTION PARTICIPATION.

    (a) Function of Administrator.--
        (1) In general.--Of any funds appropriated pursuant to the 
    authorization in section 121(a), the funds made available for use 
    in carrying out this section in accordance with section 121(a)(4) 
    shall be administered by the Administrator of the Fund, in 
    consultation with--
            (A) the Federal banking agencies (as defined in section 3 
        of the Federal Deposit Insurance Act) and the National Credit 
        Union Administration;
            (B) the individuals named pursuant to clauses (ii) and (iv) 
        of section 104(d)(2)(G); and
            (C) any other representatives of insured depository 
        institutions or other persons as the Administrator may 
        determine to be appropriate.
        (2) Applicability of bank enterprise act of 1991.--Subject to 
    subsection (b) and the consultation requirement of paragraph (1)--
            (A) section 233 of the Bank Enterprise Act of 1991 shall be 
        applicable to the Administrator, for purposes of this section, 
        in the same manner and to the same extent that such section is 
        applicable to the Community Enterprise Assessment Credit Board;
            (B) the Administrator shall, for purposes of carrying out 
        this section and section 233 of the Bank Enterprise Act of 
        1991--
                (i) have all powers and rights of the Community 
            Enterprise Assessment Credit Board under section 233 of the 
            Bank Enterprise Act of 1991 to administer and enforce any 
            provision of such section 233 which is applicable to the 
            Administrator under this section; and
                (ii) shall be subject to the same duties and 
            restrictions imposed on the Community Enterprise Assessment 
            Credit Board; and
            (C) the Administrator shall--
                (i) have all powers and rights of an appropriate 
            Federal banking agency under section 233(b)(2) of the Bank 
            Enterprise Act of 1991 to approve or disapprove the 
            designation of qualified distressed communities for 
            purposes of this section and provide information and 
            assistance with respect to any such designation; and
                (ii) shall be subject to the same duties imposed on the 
            appropriate Federal banking agencies under such section 
            233(b)(2).
        (3) Awards.--The Administrator shall determine the amount of 
    assessment credits, and shall make awards of those credits.
        (4) Regulations and guidelines.--The Administrator may 
    prescribe such regulations and issue such guidelines as the 
    Administrator determines to be appropriate to carry out this 
    section.
        (5) Exceptions to applicability.--Notwithstanding paragraphs 
    (1) through (4) of this subsection, subsections (a)(1) and (e)(2) 
    of section 233 of the Bank Enterprise Act of 1991, and any other 
    provision of the Federal Deposit Insurance Act relating to the Bank 
    Enterprise Act of 1991, do not apply to the Administrator for 
    purposes of this subtitle.
    (b) Provisions Relating to Administration of ThisP Section.--
        (1) New lifeline accounts.--In applying section 233 of the Bank 
    Enterprise Act of 1991 for purposes of this section, the 
    Administrator shall treat the provision of new lifeline accounts by 
    an insured depository institution as an activity which is qualified 
    to be taken into account under section 233(a)(2)(A) of such Act.
        (2) Determination of assessment credit.--For the purpose of 
    this subtitle, section 233(a)(3) of the Bank Enterprise Act of 1991 
    (12 U.S.C. 1834a(a)(3)) shall be applied by substituting the 
    following text:
        ``(3) Amount of assessment credit.--The amount of an assessment 
    credit which may be awarded to an insured depository institution to 
    carry out the qualified activities of the institution or of the 
    subsidiaries of the institution pursuant to this section for any 
    semiannual period shall be equal to the sum of--
            ``(A) with respect to qualifying activities described in 
        paragraph (2)(A), the amount which is equal to--
                ``(i) 5 percent of the sum of the amounts determined 
            under such subparagraph, in the case of an institution 
            which is not a community development financial institution; 
            or
                ``(ii) 15 percent of the sum of the amounts determined 
            under such subparagraph, in the case of an institution 
            which is a community development financial institution; and
            ``(B) with respect to qualifying activities described in 
        paragraph (2)(C), 15 percent of the amounts determined under 
        such subparagraph.''.
        (3) Adjustment of percentage.--Section 233(a)(5) of the Bank 
    Enterprise Act of 1991 shall be applied for purposes of this 
    section by--
            (A) substituting ``institutions which are community 
        development financial institutions'' for ``institutions which 
        meet the community development organization requirements under 
        section 234''; and
            (B) substituting ``institutions which are not community 
        development financial institutions'' for ``institutions which 
        do not meet such requirements''.
        (4) Designation of qdc.--Section 233(b)(2) of the Bank 
    Enterprise Act of 1991 shall be applied for purposes of this 
    section without regard to subparagraph (A)(ii) of such section 
    233(b)(2).
        (5) Operation on annual basis.--The Administrator may, in the 
    Administrator's discretion, apply section 233 of the Bank 
    Enterprise Act of 1991 for purposes of this section by providing 
    community enterprise assessment credits with respect to annual 
    periods rather than semiannual periods.
        (6) Outreach.--The Administrator shall ensure that information 
    about the Bank Enterprise Act of 1991 under this section is widely 
    disseminated to all interested parties.
        (7) Qualified activities.--For the purpose of this subtitle, 
    section 233(a)(2)(A) of the Bank Enterprise Act of 1991 shall be 
    applied by inserting ``of the increase'' after ``the amount''.
    (c) Technical and Conforming Amendments to the Bank Enterprise Act 
of 1991.--
        (1) Assistance to cdfi may be taken into account as qualifying 
    activity.--Section 233(a)(2) of the Bank Enterprise Act of 1991 (12 
    U.S.C. 1834a(a)(2)) is amended--
            (A) in the material preceding subparagraph (A), by striking 
        ``shall be eligible'' and inserting ``may apply for'';
            (B) in subparagraph (A), by striking ``financial 
        assistance'' and inserting ``assistance'';
            (C) by striking ``and'' at the end of subparagraph (A);
            (D) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (E) by adding at the end the following new subparagraph:
            ``(C) any increase during the period in the amount of new 
        equity investments in community development financial 
        institutions.''.
        (2) Additional assistance which may be considered as qualifying 
    activities.--Section 233(a)(4) of the Bank Enterprise Act of 1991 
    (12 U.S.C. 1834a(a)(4)) is amended--
            (A) in the material preceding subparagraph (A), by striking 
        ``financial''; and
            (B) by adding at the end the following new subparagraphs:
            ``(L) Loans made for the purpose of developing or 
        supporting--
                ``(i) commercial facilities that enhance 
            revitalization, community stability, or job creation and 
            retention efforts;
                ``(ii) business creation and expansion efforts that--

                    ``(I) create or retain jobs for low-income people;
                    ``(II) enhance the availability of products and 
                services to low-income people; or
                    ``(III) create or retain businesses owned by low-
                income people or residents of a targeted area;

                ``(iii) community facilities that provide benefits to 
            low-income people or enhance community stability;
                ``(iv) home ownership opportunities that are affordable 
            to low-income households;
                ``(v) rental housing that is principally affordable to 
            low-income households; and
                ``(vi) other activities deemed appropriate by the 
            Board.
            ``(M) The provision of technical assistance to residents of 
        qualified distressed communities in managing their personal 
        finances through consumer education programs either sponsored 
        or offered by insured depository institutions.
            ``(N) The provision of technical assistance and consulting 
        services to newly formed small businesses located in qualified 
        distressed communities.
            ``(O) The provision of technical assistance to, or 
        servicing the loans of low- or moderate-income homeowners and 
        homeowners located in qualified distressed communities.''.
        (3) Restriction on adjustment of percentages.--Section 
    233(a)(5) of the Bank Enterprise Act of 1991 (12 U.S.C. 
    1834a(a)(5)) is amended by striking ``paragraph (3)'' and inserting 
    ``paragraph (3)(A)''.
        (4) Credit limited to originations by institutions.--Section 
    233(a)(6) of the Bank Enterprise Act of 1991 (12 U.S.C. 
    1834a(a)(6)) is amended by striking ``Investments by any insured 
    depository institution in loans and securities'' and inserting 
    ``Loans, financial assistance, and equity investments made by any 
    insured depository institution''.
        (5) Quantitative analysis of technical assistance.--Section 
    233(a) of the Bank Enterprise Act of 1991 (12 U.S.C. 1834a(a)) is 
    amended by adding at the end the following new paragraph:
        ``(7) Quantitative analysis of technical assistance.--The Board 
    may establish guidelines for analyzing the technical assistance 
    described in subparagraphs (M), (N), and (O) of paragraph (4) for 
    the purpose of quantifying the results of such assistance in 
    determining the amount of any community assessment credit under 
    this subsection.''.
        (6) Prohibition on double funding for same activities.--Section 
    233 of the Bank Enterprise Act of 1991 (12 U.S.C. 1834a) is 
    amended--
            (A) by redesignating subsection (g) as subsection (j); and
            (B) by inserting after subsection (f) the following new 
        subsection:
    ``(g) Prohibition on Double Funding for Same Activities.--No 
community development financial institution may receive a community 
enterprise assessment credit if such institution, either directly or 
through a community partnership--
        ``(1) has received assistance within the preceding 12-month 
    period, or has an application for assistance pending, under section 
    105 of the Community Development Banking and Financial Institutions 
    Act of 1994; or
        ``(2) has ever received assistance, under section 108 of the 
    Community Development Banking and Financial Institutions Act of 
    1994, for the same activity during the same semiannual period for 
    which the institution seeks a community enterprise assessment 
    credit under this section.''.
        (7) Additional administrative requirements.--Section 233 of the 
    Bank Enterprise Act of 1991 (12 U.S.C. 1834a) is amended by 
    inserting after subsection (g) (as added by paragraph (6) of this 
    subsection) the following new subsections:
    ``(h) Priority of Awards.--
        ``(1) Qualifying loans and services.--
            ``(A) In general.--If the amount of funds appropriated for 
        purposes of carrying out this section for any fiscal year are 
        insufficient to award the amount of assessment credits for 
        which insured depository institutions have applied and are 
        eligible under this section, the Board shall, in awarding 
        community enterprise assessment credits for qualifying 
        activities under subparagraphs (A) and (B) of subsection (a)(2) 
        for any semiannual period for which such appropriation is 
        available, determine which institutions shall receive an award.
            ``(B) Priority for support of efforts of cdfi.--The Board 
        shall give priority to institutions that have supported the 
        efforts of community development financial institutions in the 
        qualified distressed community.
            ``(C) Other factors.--The Board may also consider the 
        following factors:
                ``(i) Degree of difficulty.--The degree of difficulty 
            in carrying out the activities that form the basis for the 
            institution's application.
                ``(ii) Community impact.--The extent to which the 
            activities that form the basis for the institution's 
            application have benefited the qualified distressed 
            community.
                ``(iii) Innovation.--The degree to which the activities 
            that form the basis for the institution's application have 
            incorporated innovative methods for meeting community 
            needs.
                ``(iv) Leverage.--The leverage ratio between the dollar 
            amount of the activities that form the basis for the 
            institution's application and the amount of the assessment 
            credit calculated in accordance with this section for such 
            activities.
                ``(v) Size.--The amount of total assets of the 
            institution.
                ``(vi) New entry.--Whether the institution had provided 
            financial services in the designated distressed community 
            before such semiannual period.
                ``(vii) Need for subsidy.--The degree to which the 
            qualified activity which forms the basis for the 
            application needs enhancement through an assessment credit.
                ``(viii) Extent of distress in community.--The degree 
            of poverty and unemployment in the designated distressed 
            community, the proportion of the total population of the 
            community which are low-income families and unrelated 
            individuals, and the extent of other adverse economic 
            conditions in such community.
        ``(2) Qualifying investments.--If the amount of funds 
    appropriated for purposes of carrying out this section for any 
    fiscal year are insufficient to award the amount of assessment 
    credits for which insured depository institutions have applied and 
    are eligible under this section, the Board shall, in awarding 
    community enterprise assessment credits for qualifying activities 
    under subsection (a)(2)(C) for any semiannual period for which such 
    appropriation is available, determine which institutions shall 
    receive an award based on the leverage ratio between the dollar 
    amount of the activities that form the basis for the institution's 
    application and the amount of the assessment credit calculated in 
    accordance with this section for suchP activities.
    ``(i) Determination of Amount of Assessment Credit.--
Notwithstanding any other provision of this section, the determination 
of the amount of any community enterprise assessment credit under 
subsection (a)(3) for any insured depository institution for any 
semiannual period shall be made solely at the discretion of the Board. 
No insured depository institution shall be awarded community enterprise 
assessment credits for any semiannual period in excess of an amount 
determined by the Board.''.
        (8) Additional definitions.--Subsection (j) of section 233 of 
    the Bank Enterprise Act of 1991 (as redesignated by paragraph (6) 
    of this subsection) is amended by adding at the end the following 
    new paragraphs:
        ``(4) Community development financial institution.--The term 
    `community development financial institution' has the same meaning 
    as in section 103(5) of the Community Development Banking and 
    Financial Institutions Act of 1994.
        ``(5) Affiliate.--The term `affiliate' has the same meaning as 
    in section 2 of the Bank Holding Company Act of 1956.''.

SEC. 115. RECORDKEEPING.

    (a) In General.--A community development financial institution 
receiving assistance from the Fund shall keep such records, for such 
periods as may be prescribed by the Fund and necessary to disclose the 
manner in which any assistance under this subtitle is used and to 
demonstrate compliance with the requirements of this subtitle.
    (b) User Profile Information.--The Fund shall require each 
community development financial institution or other organization 
receiving assistance from the Fund to compile such data, as is 
determined to be appropriate by the Fund, on the gender, race, 
ethnicity, national origin, or other pertinent information concerning 
individuals that utilize the services of the assisted institution to 
ensure that targeted populations and low-income residents of investment 
areas are adequately served.
    (c) Access to Records.--The Fund shall have access on demand, for 
the purpose of determining compliance with this subtitle, to any 
records of a community development financial institution or other 
organization that receives assistance from the Fund.
    (d) Review.--Not less than annually, the Fund shall review the 
progress of each assisted community development financial institution 
in carrying out its strategic plan, meeting its performance goals, and 
satisfying the terms and conditions of its assistance agreement.
    (e) Reporting.--
        (1) Annual reports.--The Fund shall require each community 
    development financial institution receiving assistance under this 
    subtitle to submit an annual report to the Fund on its activities, 
    its financial condition, and its success in meeting performance 
    goals, in satisfying the terms and conditions of its assistance 
    agreement, and in complying with other requirements of this 
    subtitle, in such form and manner as the Fund shall specify.
        (2) Availability of reports.--The Fund, after deleting or 
    redacting any material as appropriate to protect privacy or 
    proprietary interests, shall make such reports submitted under 
    paragraph (1) available for public inspection.
    SEC. 116. SPECIAL PROVISIONS WITH RESPECT TO INSTITUTIONS THAT ARE 
      SUPERVISED BY FEDERAL BANKING AGENCIES.
    (a) Consultation With Appropriate Agencies.--The Fund shall consult 
with and consider the views of the appropriate Federal banking agency 
prior to providing assistance under this subtitle to--
        (1) an insured community development financial institution;
        (2) any community development financial institution that is 
    examined by or subject to the reporting requirements of an 
    appropriate Federal banking agency; or
        (3) any community development financial institution that has as 
    its community partner an institution that is examined by or subject 
    to the reporting requirements of an appropriate Federal banking 
    agency.
    (b) Requests for Information, Reports, or Records.--
        (1) In general.--Except as provided in paragraph (4), 
    notwithstanding any other provisions of this subtitle, prior to 
    directly requesting information from or imposing reporting or 
    recordkeeping requirements on an insured community development 
    financial institution or other institution that is examined by or 
    subject to the reporting requirements of an appropriate Federal 
    banking agency, the Fund shall consult with the appropriate Federal 
    banking agency to determine if the information requested is 
    available from or may be obtained by such agency in the form, 
    format, or detail required by the Fund.
        (2) Timing of response from appropriate federal banking 
    agency.--If the information, reports, or records requested by the 
    Fund pursuant to paragraph (1) are not provided by the appropriate 
    Federal banking agency in less than 15 calendar days after the date 
    on which the material is requested, the Fund may request the 
    information from or impose the recordkeeping or reporting 
    requirements directly on such institutions with notice to the 
    appropriate Federal banking agency.
        (3) Elimination of duplicative information and reporting 
    requirements.--The Fund shall use any information provided the 
    appropriate Federal banking agency under this Psection to the 
    extent practicable to eliminate duplicative requests for 
    information and reports from, and recordkeeping by an insured 
    community development financial institution or other institution 
    that is examined by or subject to the reporting requirements of an 
    appropriate Federal banking agency.
        (4) Exception.--Notwithstanding paragraphs (1) and (2), the 
    Fund may require an insured community development financial 
    institution or other institution that is examined by or subject to 
    the reporting requirements of an appropriate Federal banking agency 
    to provide information with respect to the institution's 
    implementation of its strategic plan or compliance with the terms 
    of its assistance agreement under this subtitle, after providing 
    notice to the appropriate Federal banking agency.
    (c) Exclusion for Examination Reports.--Nothing in this section 
shall be construed to permit the Fund to require an insured community 
development financial institution or other institution that is examined 
by or subject to the reporting requirements of an appropriate Federal 
banking agency, to obtain, maintain, or furnish an examination report 
of any appropriate Federal banking agency or records contained in or 
related to such a report.
    (d) Sharing of Information.--The Fund and the appropriate Federal 
banking agency shall promptly notify each other of material concerns 
about an insured community development financial institution or other 
institution that is examined by or subject to the reporting 
requirements of an appropriate Federal banking agency, and share 
appropriate information relating to such concerns.
    (e) Disclosure Prohibited.--Neither the Fund nor the appropriate 
Federal banking agency shall disclose confidential information obtained 
pursuant to this section from any party without the written consent of 
that party.
    (f) Privilege Maintained.--The Fund, the appropriate Federal 
banking agency, and any other party providing information under this 
section shall not be deemed to have waived any privilege applicable to 
any information or data, or any portion thereof, by providing such 
information or data to the other party or by permitting such data or 
information, or any copies or portions thereof, to be used by the other 
party.
    (g) Exceptions.--Nothing in this section shall authorize the Fund 
or the appropriate Federal banking agency to withhold information from 
the Congress or prevent it from complying with a request for 
information from a Federal department or agency in compliance with 
applicable law.
    (h) Sanctions.--
        (1) Notification.--The Fund shall notify the appropriate 
    Federal banking agency before imposing any sanction pursuant to the 
    authority in section 108(f)(2)(C) on an insured community 
    development financial institution or other institution that is 
    examined by or subject to the reporting requirements of that 
    agency.
        (2) Exceptions.--The Fund shall not impose a sanction referred 
    to in paragraph (1) if the appropriate Federal banking agency, in 
    writing, not later than 30 calendar days after receiving notice 
    from the Fund--
            (A) objects to the proposed sanction;
            (B) determines that the sanction would--
                (i) have a material adverse effect on the safety and 
            soundness of the institution; or
                (ii) impede or interfere with an enforcement action 
            against that institution by that agency;
            (C) proposes a comparable alternative action; and
            (D) specifically explains--
                (i) the basis for the determination under subparagraph 
            (B) and, if appropriate, provides documentation to support 
            the determination; and
                (ii) how the alternative action suggested pursuant to 
            subparagraph (C) would be as effective as the sanction 
            proposed by the Fund in securing compliance with this 
            subtitle and deterring future noncompliance.
    (i) Safety and Soundness Considerations.--The Fund and each 
appropriate Federal banking agency shall cooperate and respond to 
requests from each other and from other appropriate Federal banking 
agencies in a manner that ensures the safety and soundness of the 
insured community development financial institution or other 
institution that is examined by or subject to the reporting 
requirements of an appropriate Federal banking agency.

SEC. 117. STUDIES AND REPORTS; EXAMINATION AND AUDIT.

    (a) Annual Report by the Fund.--The Fund shall conduct an annual 
evaluation of the activities carried out by the Fund and the community 
development financial institutions and other organizations assisted 
pursuant to this subtitle, and shall submit a report of its findings to 
the President and the Congress not later than 120 days after the end of 
each fiscal year of the Fund. The report shall include financial 
statements audited in accordance with subsection (f).
    (b) Optional Studies.--The Fund may conduct such studies as the 
Fund determines necessary to further the purpose of this subtitle and 
to facilitate investment in distressed communities. The findings of any 
studies conducted pursuant to this subsection shall be included in the 
report required by subsection (a).
    (c) Native American Lending Study.--
        (1) In general.--The Fund shall conduct a study on lending and 
    investment practices on Indian reservations and other land held in 
    trust by the United States. Such study shall--
            (A) identify barriers to private financing on such lands; 
        and
            (B) identify the impact of such barriers on access to 
        capital and credit for Native American populations.
        (2) Report.--Not later than 12 months after the date on which 
    the Administrator is appointed, the Fund shall submit a report to 
    the President and the Congress that--
            (A) contains the findings of the study conducted under 
        paragraph (1);
            (B) recommends any necessary statutory and regulatory 
        changes to existing Federal programs; and
            (C) makes policy recommendations for community development 
        financial institutions, insured depository institutions, 
        secondary market institutions, and other private sector capital 
        institutions to better serve suchP populations.
    (d) Investment, Governance, and Role of Fund.--Thirty months after 
the appointment and qualification of the Administrator, the Comptroller 
General of the United States shall submit to the President and the 
Congress a study evaluating the structure, governance, and performance 
of the Fund.
    (e) Consultation.--In the conduct of the studies required under 
this section, the Fund shall consult, as appropriate, with the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
the Board of Governors of the Federal Reserve System, the Federal 
Housing Finance Board, the Farm Credit Administration, the Director of 
the Office of Thrift Supervision, the National Credit Union 
Administration Board, Indian tribal governments, community reinvestment 
organizations, civil rights organizations, consumer organizations, 
financial organizations, and such representatives of agencies or other 
persons, at the discretion of the Fund.
    (f) Examination and Audit.--The financial statements of the Fund 
shall be audited in accordance with section 9105 of title 31, United 
States Code, except that audits required by section 9105(a) of such 
title shall be performed annually.

SEC. 118. INSPECTOR GENERAL.

    (a) Establishment.--Section 11 of the Inspector General Act of 1978 
(5 U.S.C. App. 11) is amended--
        (1) in paragraph (1), by inserting ``; the Administrator of the 
    Community Development Financial Institutions Fund;'' before ``and 
    the chief''; and
        (2) in paragraph (2), by inserting ``the Community Development 
    Financial Institutions Fund,'' after ``the Agency for International 
    Development,''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the operation of the 
Office of Inspector General established by the amendments made by 
subsection (a).

SEC. 119. ENFORCEMENT.

    (a) Regulations.--
        (1) In general.--Not later than 180 days after the appointment 
    and qualification of the Administrator, the Fund shall promulgate 
    such regulations as may be necessary to carry out this subtitle.
        (2) Regulations required.--The regulations promulgated under 
    paragraph (1) shall include regulations applicable to community 
    development financial institutions that are not insured depository 
    institutions to--
            (A) prevent conflicts of interest on the part of directors, 
        officers, and employees of community development financial 
        institutions as the Fund determines to be appropriate; and
            (B) establish such standards with respect to loans by a 
        community development financial institution to any director, 
        officer, or employee of such institution as the Fund determines 
        to be appropriate, including loan amountP limitations.
    (b) Administrative Enforcement.--The provisions of this subtitle, 
and regulations prescribed and agreements entered into under this 
subtitle, shall be enforced under section 8 of the Federal Deposit 
Insurance Act by the appropriate Federal banking agency, in the case of 
an insured community development financial institution. A violation of 
this subtitle, or any regulation prescribed under or any agreement 
entered into under this subtitle, shall be treated as a violation of 
the Federal Deposit Insurance Act.
    (c) Criminal Provision.--Section 657 of title 18, United States 
Code, is amended by inserting ``or any community development financial 
institution receiving financial assistance under the Riegle Community 
Development and Regulatory Improvement Act of 1994,'' after ``small 
business investment company,''.
    SEC. 120. COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT 
      UNIONS.
    (a) Repeal.--Section 120 of the Federal Credit Union Act (12 U.S.C. 
1766) is amended by striking subsection (k).
    (b) Revolving Loan Fund.--The Federal Credit Union Act (12 U.S.C. 
1751 et seq.) is amended by inserting after section 129 the following 
new section:
``SEC. 130. COMMUNITY DEVELOPMENT REVOLVING LOAN FUND FOR CREDIT 
UNIONS.
    ``(a) In General.--The Board may exercise the authority granted to 
it by the Community Development Credit Union Revolving Loan Fund 
Transfer Act, including any additional appropriation made or earnings 
accrued, subject only to this section and to regulations prescribed by 
the Board.
    ``(b) Investment.--The Board may invest any idle Fund moneys in 
United States Treasury securities. Any interest accrued on such 
securities shall become a part of the Fund.
    ``(c) Loans.--The Board may require that any loans made from the 
Fund be matched by increased shares in the borrower credit union.
    ``(d) Interest.--Interest earned by the Fund may be allocated by 
the Board for technical assistance to community development credit 
unions, subject to an appropriations Act.
    ``(e) Definition.--As used in this section, the term `Fund' means 
the Community Development Credit Union Revolving Loan Fund.''.

SEC. 121. AUTHORIZATION OF APPROPRIATIONS.

    (a) Fund Authorization.--
        (1) In general.--To carry out this subtitle, there are 
    authorized to be appropriated to the Fund, to remain available 
    until expended--
            (A) $60,000,000 for fiscal year 1995;
            (B) $104,000,000 for fiscal year 1996;
            (C) $107,000,000 for fiscal year 1997; and
            (D) $111,000,000 for fiscal year 1998;
    or such greater sums as may be necessary to carry out this 
    subtitle.
        (2) Administrative expenses.--
            (A) In general.--Of amounts authorized to be appropriated 
        to the Fund pursuant to this section, not more than $5,550,000 
        may be used by the Fund in each fiscal year to pay the 
        administrative costs and expenses of the Fund. Costs associated 
        with the training program established under section 109 and the 
        technical assistance program established under section 108 
        shall not be considered to be administrative expenses for 
        purposes of thisP paragraph.
            (B) Calculations.--The amounts referred to in paragraphs 
        (3) and (4) shall be calculated after subtracting the amount 
        referred to in subparagraph (A) of this paragraph from the 
        total amount appropriated to the Fund in accordance with 
        paragraph (1) in any fiscal year.
        (3) Capitalization assistance.--Not more than 5 percent of the 
    amounts authorized to be appropriated under paragraph (1) may be 
    used as provided in section 113.
        (4) Availability for funding section 114.--33\1/3\ percent of 
    the amounts appropriated to the Fund for any fiscal year pursuant 
    to the authorization in paragraph (1) shall be available for use in 
    carrying out section 114.
        (5) Support of community development financial institutions.--
    The Administrator shall allocate funds authorized under this 
    section, to the maximum extent practicable, for the support of 
    community development financialP institutions.
    (b) Community Development Credit Union Revolving Loan Fund.--There 
are authorized to be appropriated for the purposes of the Community 
Development Credit Union Revolving Loan Fund--
        (1) $4,000,000 for fiscal year 1995;
        (2) $2,000,000 for fiscal year 1996;
        (3) $2,000,000 for fiscal year 1997; and
        (4) $2,000,000 for fiscal year 1998.
    (c) Budgetary Treatment.--Amounts authorized to be appropriated 
under this section shall be subject to discretionary spending caps, as 
provided in section 601 of the Congressional Budget Act of 1974, and 
therefore shall reduce by an equal amount funds made available for 
other discretionary spending programs.

            Subtitle B--Home Ownership and Equity Protection

SEC. 151. SHORT TITLE.

    This subtitle may be cited as the ``Home Ownership and Equity 
Protection Act of 1994''.

SEC. 152. CONSUMER PROTECTIONS FOR CERTAIN MORTGAGES.

    (a) Mortgage Definition.--Section 103 of the Truth in Lending Act 
(15 U.S.C. 1602) is amended by adding at the end the following new 
subsection:
    ``(aa)(1) A mortgage referred to in this subsection means a 
consumer credit transaction that is secured by the consumer's principal 
dwelling, other than a residential mortgage transaction, a reverse 
mortgage transaction, or a transaction under an open end credit plan, 
if--
        ``(A) the annual percentage rate at consummation of the 
    transaction will exceed by more than 10 percentage points the yield 
    on Treasury securities having comparable periods of maturity on the 
    fifteenth day of the month immediately preceding the month in which 
    the application for the extension of credit is received by the 
    creditor; or
        ``(B) the total points and fees payable by the consumer at or 
    before closing will exceed the greater of--
            ``(i) 8 percent of the total loan amount; or
            ``(ii) $400.
    ``(2)(A) After the 2-year period beginning on the effective date of 
the regulations promulgated under section 155 of the Riegle Community 
Development and Regulatory Improvement Act of 1994, and no more 
frequently than biennially after the first increase or decrease under 
this subparagraph, the Board may by regulation increase or decrease the 
number of percentage points specified in paragraph (1)(A), if the Board 
determines that the increase or decrease is--
        ``(i) consistent with the consumer protections against abusive 
    lending provided by the amendments made by subtitle B of title I of 
    the Riegle Community Development and Regulatory Improvement Act of 
    1994; and
        ``(ii) warranted by the need for credit.
    ``(B) An increase or decrease under subparagraph (A) may not result 
in the number of percentage points referred to in subparagraph (A) 
being--
        ``(i) less that 8 percentage points; or
        ``(ii) greater than 12 percentage points.
    ``(C) In determining whether to increase or decrease the number of 
percentage points referred to in subparagraph (A), the Board shall 
consult with representatives of consumers, including low-income 
consumers, and lenders.
    ``(3) The amount specified in paragraph (1)(B)(ii) shall be 
adjusted annually on January 1 by the annual percentage change in the 
Consumer Price Index, as reported on June 1 of the year preceding such 
adjustment.
    ``(4) For purposes of paragraph (1)(B), points and fees shall 
include--
        ``(A) all items included in the finance charge, except interest 
    or the time-price differential;
        ``(B) all compensation paid to mortgage brokers;
        ``(C) each of the charges listed in section 106(e) (except an 
    escrow for future payment of taxes), unless--
            ``(i) the charge is reasonable;
            ``(ii) the creditor receives no direct or indirect 
        compensation; and
            ``(iii) the charge is paid to a third party unaffiliated 
        with the creditor; and
        ``(D) such other charges as the Board determines to be 
    appropriate.
    ``(5) This subsection shall not be construed to limit the rate of 
interest or the finance charge that a person may charge a consumer for 
any extension of credit.''.
    (b) Material Disclosures.--Section 103(u) of the Truth in Lending 
Act (15 U.S.C. 1602(u)) is amended--
        (1) by striking ``and the due dates'' and inserting ``the due 
    dates''; and
        (2) by inserting before the period ``, and the disclosures 
    required by section 129(a)''.
    (c) Definition of Creditor Clarified.--Section 103(f) of the Truth 
in Lending Act (15 U.S.C. 1602(f)) is amended by adding at the end the 
following: ``Any person who originates 2 or more mortgages referred to 
in subsection (aa) in any 12-month period or any person who originates 
1 or more such mortgages through a mortgage broker shall be considered 
to be a creditor for purposes of this title.''.
    (d) Disclosures Required and Certain Terms Prohibited.--The Truth 
in Lending Act (15 U.S.C. 1601 et seq.) is amended by inserting after 
section 128 the following new section:

``SEC. 129. REQUIREMENTS FOR CERTAIN MORTGAGES.

    ``(a) Disclosures.--
        ``(1) Specific disclosures.--In addition to other disclosures 
    required under this title, for each mortgage referred to in section 
    103(aa), the creditor shall provide the following disclosures in 
    conspicuous type size:
            ``(A) `You are not required to complete this agreement 
        merely because you have received these disclosures or have 
        signed a loan application.'.
            ``(B) `If you obtain this loan, the lender will have a 
        mortgage on your home. You could lose your home, and any money 
        you have put into it, if you do not meet your obligations under 
        the loan.'.
        ``(2) Annual percentage rate.--In addition to the disclosures 
    required under paragraph (1), the creditor shall disclose--
            ``(A) in the case of a credit transaction with a fixed rate 
        of interest, the annual percentage rate and the amount of the 
        regular monthly payment; or
            ``(B) in the case of any other credit transaction, the 
        annual percentage rate of the loan, the amount of the regular 
        monthly payment, a statement that the interest rate and monthly 
        payment may increase, and the amount of the maximum monthly 
        payment, based on the maximum interest rate allowed pursuant to 
        section 1204 of the Competitive Equality Banking Act of 1987.
    ``(b) Time of Disclosures.--
        ``(1) In general.--The disclosures required by this section 
    shall be given not less than 3 business days prior to consummation 
    of the transaction.
        ``(2) New disclosures required.--
            ``(A) In general.--After providing the disclosures required 
        by this section, a creditor may not change the terms of the 
        extension of credit if such changes make the disclosures 
        inaccurate, unless new disclosures are provided that meet the 
        requirements of this section.
            ``(B) Telephone disclosure.--A creditor may provide new 
        disclosures pursuant to subparagraph (A) by telephone, if--
                ``(i) the change is initiated by the consumer; and
                ``(ii) at the consummation of the transaction under 
            which the credit is extended--

                    ``(I) the creditor provides to the consumer the new 
                disclosures, in writing; and
                    ``(II) the creditor and consumer certify in writing 
                that the new disclosures were provided by telephone, by 
                not later than 3 days prior to the date of consummation 
                of the transaction.

        ``(3) Modifications.--The Board may, if it finds that such 
    action is necessary to permit homeowners to meet bona fide personal 
    financial emergencies, prescribe regulations authorizing the 
    modification or waiver of rights created under this subsection, to 
    the extent and under the circumstances set forth in those 
    regulations.
    ``(c) No Prepayment Penalty.--
        ``(1) In general.--
            ``(A) Limitation on terms.--A mortgage referred to in 
        section 103(aa) may not contain terms under which a consumer 
        must pay a prepayment penalty for paying all or part of the 
        principal before the date on which the principal is due.
            ``(B) Construction.--For purposes of this subsection, any 
        method of computing a refund of unearned scheduled interest is 
        a prepayment penalty if it is less favorable to the consumer 
        than the actuarial method (as that term is defined in section 
        933(d) of the Housing and Community Development Act of 1992).
        ``(2) Exception.--Notwithstanding paragraph (1), a mortgage 
    referred to in section 103(aa) may contain a prepayment penalty 
    (including terms calculating a refund by a method that is not 
    prohibited under section 933(b) of the Housing and Community 
    Development Act of 1992 for the transaction in question) if--
            ``(A) at the time the mortgage is consummated--
                ``(i) the consumer is not liable for an amount of 
            monthly indebtedness payments (including the amount of 
            credit extended or to be extended under the transaction) 
            that is greater than 50 percent of the monthly gross income 
            of the consumer; and
                ``(ii) the income and expenses of the consumer are 
            verified by a financial statement signed by the consumer, 
            by a credit report, and in the case of employment income, 
            by payment records or by verification from the employer of 
            the consumer (which verification may be in the form of a 
            copy of a pay stub or other payment record supplied by the 
            consumer);
            ``(B) the penalty applies only to a prepayment made with 
        amounts obtained by the consumer by means other than a 
        refinancing by the creditor under the mortgage, or an affiliate 
        of that creditor;
            ``(C) the penalty does not apply after the end of the 5-
        year period beginning on the date on which the mortgage is 
        consummated; and
            ``(D) the penalty is not prohibited under other applicable 
        law.
    ``(d) Limitations After Default.--A mortgage referred to in section 
103(aa) may not provide for an interest rate applicable after default 
that is higher than the interest rate that applies before default. If 
the date of maturity of a mortgage referred to in subsection 103(aa) is 
accelerated due to default and the consumer is entitled to a rebate of 
interest, that rebate shall be computed by any method that is not less 
favorable than the actuarial method (as that term is defined in section 
933(d) of the Housing and Community Development Act of 1992).
    ``(e) No Balloon Payments.--A mortgage referred to in section 
103(aa) having a term of less than 5 years may not include terms under 
which the aggregate amount of the regular periodic payments would not 
fully amortize the outstanding principal balance.
    ``(f) No Negative Amortization.--A mortgage referred to in section 
103(aa) may not include terms under which the outstanding principal 
balance will increase at any time over the course of the loan because 
the regular periodic payments do not cover the full amount of interest 
due.
    ``(g) No Prepaid Payments.--A mortgage referred to in section 
103(aa) may not include terms under which more than 2 periodic payments 
required under the loan are consolidated and paid in advance from the 
loan proceeds provided to the consumer.
    ``(h) Prohibition on Extending Credit Without Regard to Payment 
Ability of Consumer.--A creditor shall not engage in a pattern or 
practice of extending credit to consumers under mortgages referred to 
in section 103(aa) based on the consumers' collateral without regard to 
the consumers' repayment ability, including the consumers' current and 
expected income, current obligations, and employment.
    ``(i) Requirements for Payments Under Home Improvement Contracts.--
A creditor shall not make a payment to a contractor under a home 
improvement contract from amounts extended as credit under a mortgage 
referred to in section 103(aa), other than--
        ``(1) in the form of an instrument that is payable to the 
    consumer or jointly to the consumer and the contractor; or
        ``(2) at the election of the consumer, by a third party escrow 
    agent in accordance with terms established in a written agreement 
    signed by the consumer, the creditor, and the contractor before the 
    date of payment.
    ``(j) Consequence of Failure To Comply.--Any mortgage that contains 
a provision prohibited by this section shall be deemed a failure to 
deliver the material disclosures required under this title, for the 
purpose of section 125.
    ``(k) Definition.--For purposes of this section, the term 
`affiliate' has the same meaning as in section 2(k) of the Bank Holding 
Company Act of 1956.
    ``(l) Discretionary Regulatory Authority of Board.--
        ``(1) Exemptions.--The Board may, by regulation or order, 
    exempt specific mortgage products or categories of mortgages from 
    any or all of the prohibitions specified in subsections (c) through 
    (i), if the Board finds that the exemption--
            ``(A) is in the interest of the borrowing public; and
            ``(B) will apply only to products that maintain and 
        strengthen home ownership and equity protection.
        ``(2) Prohibitions.--The Board, by regulation or order, shall 
    prohibit acts or practices in connection with--
            ``(A) mortgage loans that the Board finds to be unfair, 
        deceptive, or designed to evade the provisions of this section; 
        and
            ``(B) refinancing of mortgage loans that the Board finds to 
        be associated with abusive lending practices, or that are 
        otherwise not in the interest of the borrower.''.
    (e) Conforming Amendments.--
        (1) Table of sections.--The table of sections at the beginning 
    of chapter 2 of the Truth in Lending Act is amended by striking the 
    item relating to section 129 and inserting the following:

``129. Requirements for certain mortgages.''.

        (2) Truth in lending act.--The Truth in Lending Act (15 U.S.C. 
    1601 et seq.) is amended--
            (A) in the second sentence of section 105(a), by striking 
        ``These'' and inserting ``Except in the case of a mortgage 
        referred to in section 103(aa), these'';
            (B) in section 111(a)(2), by inserting before the period 
        the following: ``, and such State-required disclosure may not 
        be made in lieu of the disclosures applicable to certain 
        mortgages under section 129''; and
            (C) in section 111(b)--
                (i) by striking ``This'' and inserting ``Except as 
            provided in section 129, this''; and
                (ii) by adding at the end the following: ``The 
            provisions of section 129 do not annul, alter, or affect 
            the applicability of the laws of any State or exempt any 
            person subject to the provisions of section 129 from 
            complying with the laws of any State, with respect to the 
            requirements for mortgages referred to in section 103(aa), 
            except to the extent that those State laws are inconsistent 
            with any provisions of section 129, and then only to the 
            extent of the inconsistency.''.

SEC. 153. CIVIL LIABILITY.

    (a) Damages.--Section 130(a) of the Truth in Lending Act (15 U.S.C. 
1640(a)) is amended--
        (1) by striking ``and'' at the end of paragraph (2)(B);
        (2) by striking the period at the end of paragraph (3) and 
    inserting ``; and''; and
        (3) by inserting after paragraph (3) the following new 
    Pparagraph:
        ``(4) in the case of a failure to comply with any requirement 
    under section 129, an amount equal to the sum of all finance 
    charges and fees paid by the consumer, unless the creditor 
    demonstrates that the failure to comply is not material.''.
    (b) State Attorney General Enforcement.--Section 130(e) of the 
Truth in Lending Act (15 U.S.C. 1640(e)) is amended by adding at the 
end the following: ``An action to enforce a violation of section 129 
may also be brought by the appropriate State attorney general in any 
appropriate United States district court, or any other court of 
competent jurisdiction, not later than 3 years after the date on which 
the violation occurs. The State attorney general shall provide prior 
written notice of any such civil action to the Federal agency 
responsible for enforcement under section 108 and shall provide the 
agency with a copy of the complaint. If prior notice is not feasible, 
the State attorney general shall provide notice to such agency 
immediately upon instituting the action. The Federal agency may--
        ``(1) intervene in the action;
        ``(2) upon intervening--
            ``(A) remove the action to the appropriate United States 
        district court, if it was not originally brought there; and
            ``(B) be heard on all matters arising in the action; and
        ``(3) file a petition for appeal.''.
    (c) Assignee Liability.--Section 131 of the Truth in Lending Act 
(15 U.S.C. 1641) is amended by adding at the end the following new 
subsection:
    ``(d) Rights Upon Assignment of Certain Mortgages.--
        ``(1) In general.--Any person who purchases or is otherwise 
    assigned a mortgage referred to in section 103(aa) shall be subject 
    to all claims and defenses with respect to that mortgage that the 
    consumer could assert against the creditor of the mortgage, unless 
    the purchaser or assignee demonstrates, by a preponderance of the 
    evidence, that a reasonable person exercising ordinary due 
    diligence, could not determine, based on the documentation required 
    by this title, the itemization of the amount financed, and other 
    disclosure of disbursements that the mortgage was a mortgage 
    referred to in section 103(aa). The preceding sentence does not 
    affect rights of a consumer under subsection (a), (b), or (c) of 
    this section or any other provision of this title.
        ``(2) Limitation on damages.--Notwithstanding any other 
    provision of law, relief provided as a result of any action made 
    permissible by paragraph (1) may not exceed--
            ``(A) with respect to actions based upon a violation of 
        this title, the amount specified in section 130; and
            ``(B) with respect to all other causes of action, the sum 
        of--
                ``(i) the amount of all remaining indebtedness; and
                ``(ii) the total amount paid by the consumer in 
            connection with the transaction.
        ``(3) Offset.--The amount of damages that may be awarded under 
    paragraph (2)(B) shall be reduced by the amount of any damages 
    awarded under paragraph (2)(A).
        ``(4) Notice.--Any person who sells or otherwise assigns a 
    mortgage referred to in section 103(aa) shall include a prominent 
    notice of the potential liability under this subsection as 
    determined by the Board.''.

SEC. 154. REVERSE MORTGAGE DISCLOSURE.

    (a) Definition of Reverse Mortgage.--Section 103 of the Truth in 
Lending Act (15 U.S.C. 1602) is amended by adding at the end the 
following new subsection:
    ``(bb) The term `reverse mortgage transaction' means a nonrecourse 
transaction in which a mortgage, deed of trust, or equivalent 
consensual security interest is created against the consumer's 
principal dwelling--
        ``(1) securing one or more advances; and
        ``(2) with respect to which the payment of any principal, 
    interest, and shared appreciation or equity is due and payable 
    (other than in the case of default) only after--
            ``(A) the transfer of the dwelling;
            ``(B) the consumer ceases to occupy the dwelling as a 
        principal dwelling; or
            ``(C) the death of the consumer.''.
    (b) Disclosure.--Chapter 2 of title I of the Truth in Lending Act 
(15 U.S.C. 1631 et seq.) is amended by adding at the end the following 
new section:

``SEC. 138. REVERSE MORTGAGES.

    ``(a) In General.--In addition to the disclosures required under 
this title, for each reverse mortgage, the creditor shall, not less 
than 3 days prior to consummation of the transaction, disclose to the 
consumer in conspicuous type a good faith estimate of the projected 
total cost of the mortgage to the consumer expressed as a table of 
annual interest rates. Each annual interest rate shall be based on a 
projected total future credit extension balance under a projected 
appreciation rate for the dwelling and a term for the mortgage. The 
disclosure shall include--
        ``(1) statements of the annual interest rates for not less than 
    3 projected appreciation rates and not less than 3 credit 
    transaction periods, as determined by the Board, including--
            ``(A) a short-term reverse mortgage;
            ``(B) a term equaling the actuarial life expectancy of the 
        consumer; and
            ``(C) such longer term as the Board deems appropriate; and
        ``(2) a statement that the consumer is not obligated to 
    complete the reverse mortgage transaction merely because the 
    consumer has received the disclosure required under this section or 
    has signed an application for the reverse mortgage.
    ``(b) Projected Total Cost.--In determining the projected total 
cost of the mortgage to be disclosed to the consumer under subsection 
(a), the creditor shall take into account--
        ``(1) any shared appreciation or equity that the lender will, 
    by contract, be entitled to receive;
        ``(2) all costs and charges to the consumer, including the 
    costs of any associated annuity that the consumer elects or is 
    required to purchase as part of the reverse mortgage transaction;
        ``(3) all payments to and for the benefit of the consumer, 
    including, in the case in which an associated annuity is purchased 
    (whether or not required by the lender as a condition of making the 
    reverse mortgage), the annuity payments received by the consumer 
    and financed from the proceeds of the loan, instead of the proceeds 
    used to finance the annuity; and
        ``(4) any limitation on the liability of the consumer under 
    reverse mortgage transactions (such as nonrecourse limits and 
    equity conservation agreements).''.
    (c) Home Equity Plan Exemption.--Section 137(b) of the Truth in 
Lending Act (15 U.S.C. 1647(b)) is amended by adding at the end the 
following:
``This subsection does not apply to reverse mortgage transactions.''.
    (d) Table of Sections.--The table of sections at the beginning of 
chapter 2 of the Truth in Lending Act is amended by inserting after the 
item relating to section 137 the following:

``138. Reverse mortgages.''.

SEC. 155. REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Board of Governors of the Federal Reserve System shall issue such 
regulations as may be necessary to carry out this subtitle, and such 
regulations shall become effective on the date on which disclosure 
regulations are required to become effective under section 105(d) of 
the Truth in Lending Act.

SEC. 156. APPLICABILITY.

    This subtitle, and the amendments made by this subtitle, shall 
apply to every mortgage referred to in section 103(aa) of the Truth in 
Lending Act (as added by section 152(a) of this Act) consummated on or 
after the date on which regulations issued under section 155 become 
effective.

SEC. 157. FEDERAL RESERVE STUDY.

    During the period beginning 180 days after the date of enactment of 
this Act and ending 2 years after that date of enactment, the Board of 
Governors of the Federal Reserve System shall conduct a study and 
submit to the Congress a report, including recommendations for any 
appropriate legislation, regarding--
        (1) whether a consumer engaging in an open end credit 
    transaction (as defined in section 103 of the Truth in Lending Act) 
    secured by the consumer's principal dwelling is provided adequate 
    protections under Federal law, including section 127A of the Truth 
    in Lending Act; and
        (2) whether a more appropriate interest rate index exists for 
    purposes of subparagraph (A) of section 103(aa)(1) of the Truth in 
    Lending Act (as added by section 152(a) of this Act) than the yield 
    on Treasury securities referred to in that subparagraph.

SEC. 158. HEARINGS ON HOME EQUITY LENDING.

    (a) Hearings.--Not less than once during the 3-year period 
beginning on the date of enactment of this Act, and regularly 
thereafter, the Board of Governors of the Federal Reserve System, in 
consultation with the Consumer Advisory Council of the Board, shall 
conduct a public hearing to examine the home equity loan market and the 
adequacy of existing regulatory and legislative provisions and the 
provisions of this subtitle in protecting the interests of consumers, 
and low-income consumers in particular.
    (b) Participation.--In conducting hearings required by subsection 
(a), the Board of Governors of the Federal Reserve System shall solicit 
participation from consumers, representatives of consumers, lenders, 
and other interested parties.

               TITLE II--SMALL BUSINESS CAPITAL FORMATION
             Subtitle A--Small Business Loan Securitization

SEC. 201. SHORT TITLE.

    This subtitle may be cited as the ``Small Business Loan 
Securitization and Secondary Market Enhancement Act of 1994''.

SEC. 202. SMALL BUSINESS RELATED SECURITY.

    Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)) is amended by adding at the end the following newP paragraph:
        ``(53)(A) The term `small business related security' means a 
    security that is rated in 1 of the 4 highest rating categories by 
    at least 1 nationally recognized statistical rating organization, 
    and either--
            ``(i) represents an interest in 1 or more promissory notes 
        or leases of personal property evidencing the obligation of a 
        small business concern and originated by an insured depository 
        institution, insured credit union, insurance company, or 
        similar institution which is supervised and examined by a 
        Federal or State authority, or a finance company or leasing 
        company; or
            ``(ii) is secured by an interest in 1 or more promissory 
        notes or leases of personal property (with or without recourse 
        to the issuer or lessee) and provides for payments of principal 
        in relation to payments, or reasonable projections of payments, 
        on notes or leases described in clause (i).
        ``(B) For purposes of this paragraph--
            ``(i) an `interest in a promissory note or a lease of 
        personal property' includes ownership rights, certificates of 
        interest or participation in such notes or leases, and rights 
        designed to assure servicing of such notes or leases, or the 
        receipt or timely receipt of amounts payable under such notes 
        or leases;
            ``(ii) the term `small business concern' means a business 
        that meets the criteria for a small business concern 
        established by the Small Business Administration under section 
        3(a) of the Small Business Act;
            ``(iii) the term `insured depository institution' has the 
        same meaning as in section 3 of the Federal Deposit Insurance 
        Act; and
            ``(iv) the term `insured credit union' has the same meaning 
        as in section 101 of the Federal Credit Union Act.''.

SEC. 203. APPLICABILITY OF MARGIN REQUIREMENTS.

    Section 7(g) of the Securities Exchange Act of 1934 (15 U.S.C. 
78g(g)) is amended by inserting ``or a small business related 
security'' after ``mortgage related security''.

SEC. 204. BORROWING IN THE COURSE OF BUSINESS.

    Section 8(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78h(a)) is amended in the last sentence by inserting ``or a small 
business related security'' after ``mortgage related security''.
    SEC. 205. SMALL BUSINESS RELATED SECURITIES AS COLLATERAL.
    Clause (ii) of section 11(d)(1) of the Securities Exchange Act of 
1934 (15 U.S.C. 78k(d)(1)) is amended by inserting ``or any small 
business related security'' after ``mortgage related security''.

SEC. 206. INVESTMENT BY DEPOSITORY INSTITUTIONS.

    (a) Home Owners' Loan Act Amendment.--Section 5(c)(1) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(1)) is amended by adding at the end 
the following new subparagraph:
            ``(S) Small business related securities.--Investments in 
        small business related securities (as defined in section 
        3(a)(53) of the Securities Exchange Act of 1934), subject to 
        such regulations as the Director may prescribe, including 
        regulations concerning the minimum size of the issue (at the 
        time of the initial distribution), the minimum aggregate sales 
        price, or both.''.
    (b) Credit Unions.--Section 107(15) of the Federal Credit Union Act 
(12 U.S.C. 1757(15)) is amended--
        (1) in subparagraph (A), by striking ``or'' at the end;
        (2) in subparagraph (B), by inserting ``or'' at the end; and
        (3) by adding at the end the following new subparagraph:
            ``(C) are small business related securities (as defined in 
        section 3(a)(53) of the Securities Exchange Act of 1934), 
        subject to such regulations as the Board may prescribe, 
        including regulations prescribing the minimum size of the issue 
        (at the time of the initial distribution), the minimum 
        aggregate sales price, or both;''.
    (c) National Banking Associations.--Section 5136 of the Revised 
Statutes (12 U.S.C. 24) is amended in the last sentence in the first 
full paragraph of paragraph Seventh, by striking ``or (B) are mortgage 
related securities'' and inserting the following: ``(B) are small 
business related securities (as defined in section 3(a)(53) of the 
Securities Exchange Act of 1934); or (C) are mortgage related 
securities''.

SEC. 207. PREEMPTION OF STATE LAW.

    (a) In General.--Section 106(a)(1) of the Secondary Mortgage Market 
Enhancement Act of 1984 (15 U.S.C. 77r-1(a)(1)) isP amended--
        (1) by striking ``or'' at the end of subparagraph (B);
        (2) by redesignating subparagraph (C) as subparagraph (D); and
        (3) by inserting after subparagraph (B) the following new 
    subparagraph:
            ``(C) small business related securities (as defined in 
        section 3(a)(53) of the Securities Exchange Act of 1934), or''.
    (b) Obligations of the United States.--Section 106(a)(2) of the 
Secondary Mortgage Market Enhancement Act of 1984 (15 U.S.C. 77r-
1(a)(2)) is amended--
        (1) by striking ``or'' at the end of subparagraph (B);
        (2) by redesignating subparagraph (C) as subparagraph (D); and
        (3) by inserting after subparagraph (B) the following new 
    subparagraph:
            ``(C) small business related securities (as defined in 
        section 3(a)(53) of the Securities Exchange Act of 1934), or''.
    (c) Preemption of State Laws.--Section 106(c) of the Secondary 
Mortgage Market Enhancement Act of 1984 (15 U.S.C. 77r-1(c)) is 
amended--
        (1) in the first sentence, by striking ``or that'' and 
    inserting ``, that''; and
        (2) by inserting ``, or that are small business related 
    securities (as defined in section 3(a)(53) of the Securities 
    Exchange Act of 1934)'' before ``shall be exempt''.
    (d) Implementation.--Section 106 of the Secondary Mortgage Market 
Enhancement Act of 1984 (15 U.S.C. 77r-1) is amended by adding at the 
end the following new subsection:
    ``(d) Implementation.--
        ``(1) Limitation.--The provisions of subsections (a) and (b) 
    concerning small business related securities shall not apply with 
    respect to a particular person, trust, corporation, partnership, 
    association, business trust, or business entity or class thereof in 
    any State that, prior to the expiration of 7 years after the date 
    of enactment of this subsection, enacts a statute that specifically 
    refers to this section and either prohibits or provides for a more 
    limited authority to purchase, hold, or invest in such small 
    business related securities by any person, trust, corporation, 
    partnership, association, business trust, or business entity or 
    class thereof than is provided in this section. The enactment by 
    any State of any statute of the type described in the preceding 
    sentence shall not affect the validity of any contractual 
    commitment to purchase, hold, or invest that was made prior to such 
    enactment, and shall not require the sale or other disposition of 
    any small business related securities acquired prior to the date of 
    such enactment.
        ``(2) State registration or qualification requirements.--Any 
    State may, not later than 7 years after the date of enactment of 
    this subsection, enact a statute that specifically refers to this 
    section and requires registration or qualification of any small 
    business related securities on terms that differ from those 
    applicable to any obligation issued by the United States.''.
    SEC. 208. INSURED DEPOSITORY INSTITUTION CAPITAL REQUIREMENTS FOR 
      TRANSFERS OF SMALL BUSINESS OBLIGATIONS.
    (a) Accounting Principles.--The accounting principles applicable to 
the transfer of a small business loan or a lease of personal property 
with recourse contained in reports or statements required to be filed 
with Federal banking agencies by a qualified insured depository 
institution shall be consistent with generally accepted accounting 
principles.
    (b) Capital and Reserve Requirements.--With respect to the transfer 
of a small business loan or lease of personal property with recourse 
that is a sale under generally accepted accounting principles, each 
qualified insured depository institution shall--
        (1) establish and maintain a reserve equal to an amount 
    sufficient to meet the reasonable estimated liability of the 
    institution under the recourse arrangement; and
        (2) include, for purposes of applicable capital standards and 
    other capital measures, only the amount of the retained recourse in 
    the risk-weighted assets of the institution.
    (c) Qualified Institutions Criteria.--An insured depository 
institution is a qualified insured depository institution for purposes 
of this section if, without regard to the accounting principles or 
capital requirements referred to in subsections (a) and (b), the 
institution is--
        (1) well capitalized; or
        (2) with the approval, by regulation or order, of the 
    appropriate Federal banking agency, adequately capitalized.
    (d) Aggregate Amount of Recourse.--The total outstanding amount of 
recourse retained by a qualified insured depository institution with 
respect to transfers of small business loans and leases of personal 
property under subsections (a) and (b) shall not exceed--
        (1) 15 percent of the risk-based capital of the institution; or
        (2) such greater amount, as established by the appropriate 
    Federal banking agency by regulation or order.
    (e) Institutions That Cease To Be Qualified or Exceed Aggregate 
Limits.--If an insured depository institution ceases to be a qualified 
insured depository institution or exceeds the limits under subsection 
(d), this section shall remain applicable to any transfers of small 
business loans or leases of personal property that occurred during the 
time that the institution was qualified and did not exceed such limit.
    (f) Prompt Corrective Action Not Affected.--The capital of an 
insured depository institution shall be computed without regard to this 
section in determining whether the institution is adequately 
capitalized, undercapitalized, significantly undercapitalized, or 
critically undercapitalized under section 38 of the Federal Deposit 
Insurance Act.
    (g) Regulations Required.--Not later than 180 days after the date 
of enactment of this Act each appropriate Federal banking agency shall 
promulgate final regulations implementing this section.
    (h) Alternative System Permitted.--
        (1) In general.--At the discretion of the appropriate Federal 
    banking agency, this section shall not apply if the regulations of 
    the agency provide that the aggregate amount of capital and 
    reserves required with respect to the transfer of small business 
    loans and leases of personal property with recourse does not exceed 
    the aggregate amount of capital and reserves that would be required 
    under subsection (b).
        (2) Existing transactions not affected.--Notwithstanding 
    paragraph (1), this section shall remain in effect with respect to 
    transfers of small business loans and leases of personal property 
    with recourse by qualified insured depository institutions 
    occurring before the effective date of regulations referred to in 
    paragraph (1).
    (i) Definitions.--For purposes of this section--
        (1) the term ``adequately capitalized'' has the same meaning as 
    in section 38(b) of the Federal Deposit Insurance Act;
        (2) the term ``appropriate Federal banking agency'' has the 
    same meaning as in section 3 of the Federal Deposit Insurance Act;
        (3) the term ``capital standards'' has the same meaning as in 
    section 38(c) of the Federal Deposit Insurance Act;
        (4) the term ``Federal banking agencies'' has the same meaning 
    as in section 3 of the Federal Deposit Insurance Act;
        (5) the term ``insured depository institution'' has the same 
    meaning as in section 3 of the Federal Deposit Insurance Act;
        (6) the term ``other capital measures'' has the meaning as in 
    section 38(c) of the Federal Deposit Insurance Act;
        (7) the term ``recourse'' has the meaning given to such term 
    under generally accepted accounting principles;
        (8) the term ``small business'' means a business that meets the 
    criteria for a small business concern established by the Small 
    Business Administration under section 3(a) of the Small Business 
    Act; and
        (9) the term ``well capitalized'' has the same meaning as in 
    section 38(b) of the Federal Deposit Insurance Act.
    SEC. 209. JOINT STUDY ON THE IMPACT OF ADDITIONAL SECURITIES BASED 
      ON POOLED OBLIGATIONS.
    (a) Joint Study Required.--The Board and the Commission shall 
conduct a joint study of the impact of the provisions of this subtitle 
(including the amendments made by this subtitle) on the credit and 
securities markets. Such study shall evaluate--
        (1) the impact of the provisions of this subtitle on the 
    availability of credit for business and commercial enterprises in 
    general, and the availability of credit in particular for--
            (A) businesses in low- and moderate-income areas;
            (B) businesses owned by women and minorities;
            (C) community development efforts;
            (D) community development financial institutions;
            (E) businesses in different geographical regions; and
            (F) a diversity of types of businesses;
        (2) the structure and operation of the markets that develop for 
    small business related securities and commercial mortgage related 
    securities, including the types of entities (such as pension funds 
    and insurance companies) that are significant purchasers of such 
    securities, the extent to which such entities are sophisticated 
    investors, the use of credit enhancements in obtaining investment-
    grade ratings, any conflicts of interest that arise in such 
    markets, and any adverse effects of such markets on commercial real 
    estate ventures, pension funds, or pension fund beneficiaries;
        (3) the extent to which the provisions of this subtitle with 
    regard to margin requirements, the number of eligible investment 
    rating categories, preemption of State law, and the treatment of 
    such securities as government securities for the purpose of State 
    investment limitations, affect the structure and operation of such 
    markets; and
        (4) in view of the findings made pursuant to paragraphs (2) and 
    (3), any additional suitability or disclosure requirements or other 
    investor protections that should be required.
    (b) Reports.--
        (1) In general.--The Board and the Commission shall submit to 
    the Congress a report on the results of the study required by 
    subsection (a) before the end of--
            (A) the 2-year period beginning on the date of enactment of 
        this Act;
            (B) the 4-year period beginning on such date of enactment; 
        and
            (C) the 6-year period beginning on such date ofP enactment.
        (2) Contents of report.--Each report required under paragraph 
    (1) shall contain or be accompanied by such recommendations for 
    administrative or legislative action as the Board and the 
    Commission consider appropriate and may include recommendations 
    regarding the need to develop a system for reporting additional 
    information concerning investments by the entities described in 
    subsection (a)(2).
    (c) Definitions.--As used in this section--
        (1) the term ``Board'' means the Board of Governors of the 
    Federal Reserve System; and
        (2) the term ``Commission'' means the Securities and Exchange 
    Commission.

SEC. 210. CONSISTENT USE OF FINANCIAL TERMINOLOGY.

    Not later than 2 years after the date of enactment of this Act, the 
Financial Institutions Examination Council shall report to the Congress 
on its recommendations for the use of consistent financial terminology 
by depository institutions for small business loans or leases of 
personal property which are sold for the creation of small business 
related securities (as defined in section 3(a)(53)(A) of the Securities 
Exchange Act of 1934).

             Subtitle B--Small Business Capital Enhancement

SEC. 251. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
        (1) small business concerns are a vital part of the economy, 
    accounting for the majority of new jobs, new products, and new 
    services created in the United States;
        (2) adequate access to debt capital is a critical component for 
    small business development, productivity, expansion, and success in 
    the United States;
        (3) commercial banks are the most important suppliers of debt 
    capital to small business concerns in the United States;
        (4) commercial banks and other depository institutions have 
    various incentives to minimize their risk in financing small 
    business concerns;
        (5) as a result of such incentives, many small business 
    concerns with economically sound financing needs are unable to 
    obtain access to needed debt capital;
        (6) the small business capital access programs implemented by 
    certain States are a flexible and efficient tool to assist 
    financial institutions in providing access to needed debt capital 
    for many small business concerns in a manner consistent with safety 
    and soundness regulations;
        (7) a small business capital access program would complement 
    other programs which assist small business concerns in obtaining 
    access to capital; and
        (8) Federal policy can stimulate and accelerate efforts by 
    States to implement small business capital access programs by 
    providing an incentive to States, while leaving theP administration 
    of such programs to each participating State.
    (b) Purposes.--By encouraging States to implement administratively 
efficient capital access programs that encourage commercial banks and 
other depository institutions to provide access to debt capital for a 
broad portfolio of small business concerns, and thereby promote a more 
efficient and effective debt market, the purposes of this subtitle 
are--
        (1) to promote economic opportunity and growth;
        (2) to create jobs;
        (3) to promote economic efficiency;
        (4) to enhance productivity; and
        (5) to spur innovation.

SEC. 252. DEFINITIONS.

    For purposes of this subtitle--
        (1) the term ``Fund'' means the Community Development Financial 
    Institutions Fund established under section 104;
        (2) the term ``appropriate Federal banking agency''--
            (A) has the same meaning as in section 3 of the Federal 
        Deposit Insurance Act; and
            (B) includes the National Credit Union Administration Board 
        in the case of any credit union the deposits of which are 
        insured in accordance with the Federal Credit Union Act;
        (3) the term ``early loan'' means a loan enrolled at a time 
    when the aggregate covered amount of loans previously enrolled 
    under the Program by a particular participating financial 
    institution is less than $5,000,000;
        (4) the term ``enrolled loan'' means a loan made by a 
    participating financial institution that is enrolled by a 
    participating State in accordance with this subtitle;
        (5) the term ``financial institution'' means any federally 
    chartered or State-chartered commercial bank, savings association, 
    savings bank, or credit union;
        (6) the term ``participating financial institution'' means any 
    financial institution that has entered into a participation 
    agreement with a participating State in accordance with section 
    254;
        (7) the term ``participating State'' means any State that has 
    been approved for participation in the Program in accordance with 
    section 253;
        (8) the term ``passive real estate ownership'' means ownership 
    of real estate for the purpose of deriving income from speculation, 
    trade, or rental, except that such term shall not include--
            (A) the ownership of that portion of real estate being used 
        or intended to be used for the operation of the business of the 
        owner of the real estate (other than the business of passive 
        ownership of real estate); or
            (B) the ownership of real estate for the purpose of 
        construction or renovation, until the completion of the 
        construction or renovation phase;
        (9) the term ``Program'' means the Small Business Capital 
    Enhancement Program established under this subtitle;
        (10) the term ``reserve fund'' means a fund, established by a 
    participating State, earmarked for a particular participating 
    financial institution, for the purposes of--
            (A) depositing all required premium charges paid by the 
        participating financial institution and by each borrower 
        receiving a loan under the Program from a participating 
        financial institution;
            (B) depositing contributions made by the participating 
        State; and
            (C) covering losses on enrolled loans by disbursing 
        accumulated funds; and
        (11) the term ``State'' means--
            (A) a State of the United States;
            (B) the District of Columbia;
            (C) any political subdivision of a State of the United 
        States, which subdivision has a population in excess of the 
        population of the least populated State of the United States; 
        and
            (D) any other political subdivision of a State of the 
        United States that the Fund determines has the capacity to 
        participate in the program.

SEC. 253. APPROVING STATES FOR PARTICIPATION.

    (a) Application.--Any State may apply to the Fund for approval to 
be a participating State under the Program and to be eligible for 
reimbursement by the Fund pursuant to section 257.
    (b) Approval Criteria.--The Fund shall approve a State to be a 
participating State, if--
        (1) a specific department or agency of the State has been 
    designated to implement the Program;
        (2) all legal actions necessary to enable such designated 
    department or agency to implement the Program have been 
    accomplished;
        (3) funds in the amount of at least $1 for every 2 people 
    residing in the State (as of the last decennial census for which 
    data have been released) are available and have been legally 
    committed to contributions by the State to reserve funds, with such 
    funds being available without time limit and without requiring 
    additional legal action, except that such requirements shall not be 
    construed to limit the authority of the State to take action at a 
    later time that results in the termination of its obligation to 
    enroll loans and make contributions to reserve funds;
        (4) the State has prescribed a form of participation agreement 
    to be entered into between it and each participating financial 
    institution that is consistent with the requirements and purposes 
    of this subtitle; and
        (5) the State and the Fund have executed a reimbursement 
    agreement that conforms to the requirements of this subtitle.
    (c) Existing State Programs.--
        (1) In general.--A State that is not a participating State, but 
    that has its own capital access program providing portfolio 
    insurance for business loans (based on a separate loss reserve fund 
    for each financial institution), may apply at any time to the Fund 
    to be approved to be a participating State. The Fund shall approve 
    such State to be a participating State, and to be eligible for 
    reimbursements by the Fund pursuant to section 257, if the State--
            (A) satisfies the requirements of subsections (a) and (b); 
        and
            (B) certifies that each affected financial institution has 
        satisfied the requirements of section 254.
        (2) Applicable terms of participation.--
            (A) Status of institutions.--If a State is approved for 
        participation under paragraph (1), each financial institution 
        with a participation agreement in effect with the participating 
        State shall immediately be considered a participating financial 
        institution. Reimbursements may be made under section 237 in 
        connection with all contributions made to the reserve fund by 
        the State in connection with lending that occurs on or after 
        the date on which the Fund approves the State for 
        participation.
            (B) Effective date of participation.--If an amended 
        participation agreement that conforms with section 255 is 
        required in order to secure participation approval by the Fund, 
        contributions subject to reimbursement under section 257 shall 
        include only those contributions made to a reserve fund with 
        respect to loans enrolled on or after the date that an amended 
        participation agreement between the participating State and the 
        participating financial institution becomes effective.
            (C) Use of accumulated reserve funds.--A State that is 
        approved for participation in accordance with this subsection 
        may continue to implement the program utilizing the reserve 
        funds accumulated under the StateP program.
    (d) Prior Appropriations Requirement.--The Fund shall not approve a 
State for participation in the Program until at least $50,000,000 has 
been appropriated to the Fund (subject to an appropriations Act), 
without fiscal year limitation, for the purpose of making 
reimbursements pursuant to section 257 and otherwise carrying out this 
subtitle.
    (e) Amendments to Agreements.--If a State that has been approved to 
be a participating State wishes to amend its form of participation 
agreement and continue to be a participating State, such State shall 
submit such amendment for review by the Fund in accordance with 
subsection (b)(4). Any such amendment shall become effective only after 
it has been approved by the Fund.

SEC. 254. PARTICIPATION AGREEMENTS.

    (a) In General.--A participating State may enter into a 
participation agreement with any financial institution determined by 
the participating State, after consultation with the appropriate 
Federal banking agency, to have sufficient commercial lending 
experience and financial and managerial capacity to participate in the 
Program. The determination by the State shall not be reviewable by the 
Fund.
    (b) Participating Financial Institutions.--Upon entering into the 
participation agreement with the participating State, the financial 
institution shall become a participating financial institution eligible 
to enroll loans under the Program.

SEC. 255. TERMS OF PARTICIPATION AGREEMENTS.

    (a) In General.--The participation agreement to be entered into by 
a participating State and a participating financial institution shall 
include all provisions required by this section, and shall not include 
any provisions inconsistent with the provisions of thisP section.
    (b) Establishment of Separate Reserve Funds.--A separate reserve 
fund shall be established by the participating State for each 
participating financial institution. All funds credited to a reserve 
fund shall be the exclusive property of the participating State. Each 
reserve fund shall be an administrative account for the purposes of--
        (1) receiving all required premium charges to be paid by the 
    borrower and participating financial institution and contributions 
    by the participating State; and
        (2) disbursing funds, either to cover losses sustained by the 
    participating financial institution in connection with loans made 
    under the Program, or as contemplated by subsections (d) and (r).
    (c) Investment Authority.--Subject to applicable State law, the 
participating State may invest, or cause to be invested, funds held in 
a reserve fund by establishing a deposit account at the participating 
financial institution in the name of the participating State. In the 
event that funds in the reserve fund are not deposited in such an 
account, such funds shall be invested in a form that the participating 
State determines is safe and liquid.
    (d) Earned Income and Interest.--Interest or income earned on the 
funds credited to a reserve fund shall be deemed to be part of the 
reserve fund, except that a participating State may, as further 
specified in the participation agreement, provide authority for the 
participating State to withdraw some or all of such interest or income 
earned.
    (e) Loan Terms and Conditions.--
        (1) In general.--A loan to be filed for enrollment under the 
    Program may be made with such interest rate, fees, and other terms 
    and conditions as agreed upon by the participating financial 
    institution and the borrower, consistent with applicable law.
        (2) Lines of credit.--If a loan to be filed for enrollment is 
    in the form of a line of credit, the amount of the loan shall be 
    considered to be the maximum amount that can be drawn by the 
    borrower against the line of credit.
    (f) Enrollment Process.--
        (1) Filing.--
            (A) In general.--A participating financial institution 
        shall file each loan made under the Program for enrollment by 
        completing and submitting to the participating State a form 
        prescribed by the participating State.
            (B) Form.--The form referred to in subparagraph (A) shall 
        include a representation by the participating financial 
        institution that it has complied with the participation 
        agreement in enrolling the loan with the State.
            (C) Premium charges.--Accompanying the completed form shall 
        be the nonrefundable premium charges paid by the borrower and 
        the participating financial institution, or evidence that such 
        premium charges have been deposited into the deposit account 
        containing the reserve fund, if applicable.
            (D) Submission.--The participation agreement shall require 
        that the items required by this subsection shall be submitted 
        to the participating State by the participating financial 
        institutions not later than 10 calendar days after a loan is 
        made.
        (2) Enrollment by state.--Upon receipt by the participating 
    State of the filing submitted in accordance with paragraph (1), the 
    participating State shall promptly enroll the loan and make a 
    matching contribution to the reserve fund in accordance with 
    subsection (j), unless the information submitted indicates that the 
    participating financial institution has not complied with the 
    participation agreement in enrolling the loan.
    (g) Coverage Amount.--In filing a loan for enrollment under the 
Program, the participating financial institution may specify an amount 
to be covered under the Program that is less than the full amount of 
the loan.
    (h) Premium Charges.--
        (1) Minimum and maximum amounts.--The premium charges payable 
    to the reserve fund by the borrower and the participating financial 
    institution shall be prescribed by the participating financial 
    institution, within minimum and maximum limits set forth in the 
    participation agreement. The participation agreement shall 
    establish minimum and maximum limits whereby the sum of the premium 
    charges paid in connection with a loan by the borrower and the 
    participating financial institution is not less than 3 percent nor 
    more than 7 percent of the amount of the loan covered under the 
    Program.
        (2) Allocation of premium charges.--The participation agreement 
    shall specify terms for allocating premium charges between the 
    borrower and the participating financial institution. However, if 
    the participating financial institution is required to pay any of 
    the premium charges, the participation agreement shall authorize 
    the participating financial institution to recover from the 
    borrower the cost of the payment of the participating financial 
    institution, in any manner on which the participating financial 
    institution and the borrower agree.
    (i) Restrictions.--
        (1) Actions prohibited.--Except as provided in subsection (h) 
    and paragraph (2) of this subsection, the participating State may 
    not--
            (A) impose any restrictions or requirements, relating to 
        the interest rate, fees, collateral, or other business terms 
        and conditions of the loan; or
            (B) condition enrollment of a loan in the Program on the 
        review by the State of the risk or creditworthiness of a loan.
        (2) Effect on other law.--Nothing in this subtitle shall affect 
    the applicability of any other law to the conduct by a 
    participating financial institution of its business.
    (j) State Contributions.--In enrolling a loan under the Program, 
the participating State shall contribute to the reserve fund an amount, 
as provided for in the participation agreement, which shall not be less 
than the sum of the amount of premium charges paid by the borrower and 
the participating financial institution.
    (k) Elements of Claims.--
        (1) Filing.--If a participating financial institution charges 
    off all or part of an enrolled loan, such participating financial 
    institution may file a claim for reimbursement with the 
    participating State by submitting a form that--
            (A) includes the representation by the participating 
        financial institution that it is filing the claim in accordance 
        with the terms of the applicable participation agreement; and
            (B) contains such other information as may be required by 
        the participating State.
        (2) Timing.--Any claim filed under paragraph (1) shall be filed 
    contemporaneously with the action of the participating financial 
    institution to charge off all or part of an enrolled loan. The 
    participating financial institution shall determine when and how 
    much to charge off on an enrolled loan, in a manner consistent with 
    its usual method for making such determinations on business loans 
    that are not enrolled loans under this subtitle.
    (l) Elements of Claims.--A claim filed by a participating financial 
institution may include the amount of principal charged off, not to 
exceed the covered amount of the loan. Such claim may also include 
accrued interest and out-of-pocket expenses, if and to the extent 
provided for under the participation agreement.
    (m) Payment of Claims.--
        (1) In general.--Except as provided in subsection (n) and 
    paragraph (2) of this subsection, upon receipt of a claim filed in 
    accordance with this section and the participation agreement, the 
    participating State shall promptly pay to the participating 
    financial institution, from funds in the reserve fund, the full 
    amount of the claim as submitted.
        (2) Insufficient reserve funds.--If there are insufficient 
    funds in the reserve fund to cover the entire amount of a claim of 
    a participating financial institution, the participating State 
    shall pay to the participating financial institution an amount 
    equal to the current balance in the reserve fund. If the enrolled 
    loan for which the claim has been filed--
            (A) is not an early loan, such payment shall be deemed 
        fully to satisfy the claim, and the participating financial 
        institution shall have no other or further right to receive any 
        amount from the reserve fund with respect to such claim; or
            (B) is an early loan, such payment shall not be deemed 
        fully to satisfy the claim of the participating financial 
        institution, and at such time as the remaining balance of the 
        claim does not exceed 75 percent of the balance in the reserve 
        fund, the participating State shall, upon the request of the 
        participating financial institution, pay any remaining amount 
        of the claim.
    (n) Denial of Claims.--A participating State may deny a claim if a 
representation or warranty made by the participating financial 
institution to the participating State at the time that the loan was 
filed for enrollment or at the time that the claim was submitted was 
known by the participating financial institution to be false.
    (o) Subsequent Recovery of Claim Amount.--If, subsequent to payment 
of a claim by the participating State, a participating financial 
institution recovers from a borrower any amount for which payment of 
the claim was made, the participating financial institution shall 
promptly pay to the participating State for deposit into the reserve 
fund the amount recovered, less any expenses incurred by the 
institution in collection of such amount.
    (p) Participation Agreement Terms.--
        (1) In general.--In connection with the filing of a loan for 
    enrollment in the Program, the participation agreement--
            (A) shall require the participating financial institution 
        to obtain an assurance from each borrower that--
                (i) the proceeds of the loan will be used for a 
            business purpose;
                (ii) the loan will not be used to finance passive real 
            estate ownership; and
                (iii) the borrower is not--

                    (I) an executive officer, director, or principal 
                shareholder of the participating financial institution;
                    (II) a member of the immediate family of an 
                executive officer, director, or principal shareholder 
                of the participating financial institution; or
                    (III) a related interest of any such executive 
                officer, director, principal shareholder, or member of 
                the immediate family;

            (B) shall require the participating financial institution 
        to provide assurances to the participating State that the loan 
        has not been made in order to place under the protection of the 
        Program prior debt that is not covered under the Program and 
        that is or was owed by the borrower to the participating 
        financial institution or to an affiliate of the participating 
        financial institution;
            (C) may provide that if--
                (i) a participating financial institution makes a loan 
            to a borrower that is a refinancing of a loan previously 
            made to the borrower by the participating financial 
            institution or an affiliate of the participating financial 
            institution;
                (ii) such prior loan was not enrolled in the Program; 
            and
                (iii) additional or new financing is extended by the 
            participating financial institution as part of the 
            refinancing,
        the participating financial institution may file the loan for 
        enrollment, with the amount to be covered under the Program not 
        to exceed the amount of any additional or new financing; and
            (D) may include additional restrictions on the eligibility 
        of loans or borrowers that are not inconsistent with the 
        provisions and purposes of this subtitle.
        (2) Definitions.--For purposes of this subsection, the terms 
    ``executive officer'', ``director'', ``principal shareholder'', 
    ``immediate family'', and ``related interest'' refer to the same 
    relationship to a participating financial institution as the 
    relationship described in part 215 of title 12 of the Code of 
    Federal Regulations, or any successor to such part.
    (q) Termination Clause.--In each participation agreement, the 
participating State shall reserve for itself the ability to terminate 
its obligation to enroll loans under the Program. Any such termination 
shall be prospective only, and shall not apply to amounts of loans 
enrolled under the Program prior to suchP termination.
    (r) Allowable Withdrawals From Fund.--The participation agreement 
may provide that, if, for any consecutive period of not less than 24 
months, the aggregate outstanding balance of all enrolled loans for a 
participating financial institution is continually less than the 
outstanding balance in the reserve fund for that participating 
financial institution, the participating State, in its discretion, may 
withdraw an amount from the reserve fund to bring the balance in the 
reserve fund down to the outstanding balance of all such enrolled 
loans.
    (s) Grandfathered Provision.--
        (1) Special treatment of premium charges.--Notwithstanding 
    subsection (b) or (d), the participation agreement, if explicitly 
    authorized by a statute enacted by the State before the date of 
    enactment of this Act, may allow a participating financial 
    institution to treat the premium charges paid by the participating 
    financial institution and the borrower into the reserve fund, and 
    interest or income earned on funds in the reserve fund that are 
    deemed to be attributable to such premium charges, as assets of the 
    participating financial institution for accounting purposes, 
    subject to withdrawal by the participating financial institution 
    only--
            (A) for the payment of claims approved by the participating 
        State in accordance with this section; and
            (B) upon the participating financial institution's 
        withdrawal from authority to make new loans under theP Program.
        (2) Payment of post-withdrawal claims.--After any withdrawal of 
    assets from the reserve fund pursuant to paragraph (1)(B), any 
    future claims filed by the participating financial institution on 
    loans remaining in its capital access program portfolio shall only 
    be paid from funds remaining in the reserve fund to the extent 
    that, in the aggregate, such claims exceed the sum of the amount of 
    such withdrawn assets, and interest on that amount, imputed at the 
    same rate as income would have accrued had the amount not been 
    withdrawn.
        (3) Conditions for terminating special authority.--If the Fund 
    determines that the inclusion in a participation agreement of the 
    provisions authorized by this subsection is resulting in the 
    enrollment of loans under the Program that are likely to have been 
    made without assistance provided under this subtitle, the Fund may 
    notify the participating State that henceforth, the Fund will only 
    make reimbursements to the State under section 257 with respect to 
    a loan if the participation agreement between the participating 
    State and each participating financial institution has been amended 
    to conform with this section, without exercise of the special 
    authority granted by this subsection.

SEC. 256. REPORTS.

    (a) Reserve Funds Report.--On or before the last day of each 
calendar quarter, a participating State shall submit to the Fund a 
report of contributions to reserve funds made by the participating 
State during the previous calendar quarter. If the participating State 
has made contributions to one or more reserve funds during the previous 
quarter, the report shall--
        (1) indicate the total amount of such contributions;
        (2) indicate the amount of contributions which is subject to 
    reimbursement, which shall be equal to the total amount of 
    contributions, unless one of the limitations contained in section 
    257 is applicable;
        (3) if one of the limitations in section 257 is applicable, 
    provide documentation of the applicability of such limitation for 
    each loan for which the limitation applies; and
        (4) include a certification by the participating State that--
            (A) the information provided in accordance with paragraphs 
        (1), (2), and (3) is accurate;
            (B) funds in an amount meeting the minimum requirements of 
        section 253(b)(3) continue to be available and legally 
        committed to contributions by the State to reserve funds, less 
        any amount that has been contributed by the State to reserve 
        funds subsequent to the State being approved for participation 
        in the Program;
            (C) there has been no unapproved amendment to any 
        participation agreement or the form of participation 
        agreements; and
            (D) the participating State is otherwise implementing the 
        Program in accordance with this subtitle and regulations issued 
        pursuant to section 259.
    (b) Annual Data.--Not later than March 31 of each year, each 
participating State shall submit to the Fund annual data indicating the 
number of borrowers financed under the Program, the total amount of 
covered loans, and breakdowns by industry type, loan size, annual 
sales, and number of employees of the borrowers financed.
    (c) Form.--The reports and data filed pursuant to subsections (a) 
and (b) shall be in such form as the Fund may require.

SEC. 257. REIMBURSEMENT BY THE FUND.

    (a) Reimbursements.--Not later than 30 calendar days after 
receiving a report filed in compliance with section 256, the Fund shall 
reimburse the participating State in an amount equal to 50 percent of 
the amount of contributions by the participating State to the reserve 
funds that are subject to reimbursement by the Fund pursuant to section 
256 and this section. The Fund shall reimburse participating States, as 
it receives reports pursuant to section 256(a), until available funds 
are expended.
    (b) Size of Assisted Borrower.--The Fund shall not provide any 
reimbursement to a participating State with respect to an enrolled loan 
made to a borrower that has 500 or more employees at the time that the 
loan is enrolled in the Program.
    (c) Three-Year Maximum.--The amount of reimbursement to be provided 
by the Fund to a participating State over any 3-year period in 
connection with loans made to any single borrower or any group of 
borrowers among which a common enterprise exists shall not exceed 
$75,000. For purposes of this subsection, ``common enterprise'' shall 
have the same meaning as in part 32 of title 12 of the Code of Federal 
Regulations, or any successor to that part.
    (d) Loans Totaling Less Than $2,000,000.--In connection with a loan 
in which the covered amount of the loan plus the covered amount of all 
previous loans enrolled by a participating financial institution does 
not exceed $2,000,000, the amount of reimbursement by the Fund to the 
participating State shall not exceed the lesser of--
        (1) 75 percent of the sum of the premium charges paid to the 
    reserve fund by the borrower and the participating financial 
    institution; or
        (2) 5.25 percent of the covered amount of the loan.
    (e) Loans Totaling More Than $2,000,000.--In connection with a loan 
in which the sum of the covered amounts of all previous loans enrolled 
by the participating financial institution in the Program equals or 
exceeds $2,000,000, the amount of reimbursement to be provided by the 
Fund to the participating State shall not exceed the lesser of--
        (1) 50 percent of the sum of the premium charges paid by the 
    borrower and the participating financial institution; or
        (2) 3.5 percent of the covered amount of the loan.
    (f) Other Amounts.--In connection with the enrollment of a loan 
that will cause the aggregate covered amount of all enrolled loans to 
exceed $2,000,000, the amount of reimbursement by the Fund to the 
participating State shall be determined--
        (1) by applying subsection (d) to the portion of the loan, 
    which when added to the aggregate covered amount of all previously 
    enrolled loans equals $2,000,000; and
        (2) by applying subsection (e) to the balance of the loan.

SEC. 258. REIMBURSEMENT TO THE FUND.

    (a) In General.--If a participating State withdraws funds from a 
reserve fund pursuant to terms of the participation agreement permitted 
by subsection (d) or (r) of section 255, such participating State 
shall, not later than 15 calendar days after such withdrawal, submit to 
the Fund an amount computed by multiplying the amount withdrawn by the 
appropriate factor, as determined under subsection (b).
    (b) Factor.--The appropriate factor shall be obtained by dividing 
the total amount of contributions that have been made by the 
participating State to all reserve funds which were subject to 
reimbursement--
        (1) by 2; and
        (2) by the total amount of contributions made by the 
    participating State to all reserve funds, including if applicable, 
    contributions that have been made by the State prior to becoming a 
    participating State if the State continued its own capital access 
    program in accordance with section 253(b).
    (c) Use of Reimbursements.--The Fund may use funds reimbursed 
pursuant to this section to make reimbursements under section 257.

SEC. 259. REGULATIONS.

    The Fund shall promulgate appropriate regulations to implement this 
subtitle.

SEC. 260. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amount.--There are authorized to be appropriated to the Fund 
$50,000,000 to carry out this subtitle.
    (b) Budgetary Treatment.--The amount authorized to be appropriated 
under subsection (a) shall be subject to discretionary spending caps, 
as provided in section 601 of the Congressional Budget Act of 1974, and 
therefore shall reduce by an equal amount funds made available for 
other discretionary spending programs.

SEC. 261. EFFECTIVE DATE.

    This subtitle shall become effective on January 6, 1996.

       TITLE III--PAPERWORK REDUCTION AND REGULATORY IMPROVEMENT

SEC. 301. INCORPORATED DEFINITIONS.

    Unless otherwise specifically provided in this title, for purposes 
of this title--
        (1) the terms ``appropriate Federal banking agency'', ``Federal 
    banking agencies'', ``insured depository institution'', and ``State 
    bank supervisor'' have the same meanings as in section 3 of the 
    Federal Deposit Insurance Act; and
        (2) the term ``insured credit union'' has the same meaning as 
    in section 101 of the Federal Credit Union Act.
    SEC. 302. ADMINISTRATIVE CONSIDERATION OF BURDEN WITH NEW 
      REGULATIONS.
    (a) Agency Considerations.--In determining the effective date and 
administrative compliance requirements for new regulations that impose 
additional reporting, disclosure, or other requirements on insured 
depository institutions, each Federal banking agency shall consider, 
consistent with the principles of safety and soundness and the public 
interest--
        (1) any administrative burdens that such regulations would 
    place on depository institutions, including small depository 
    institutions and customers of depository institutions; and
        (2) the benefits of such regulations.
    (b) Adequate Transition Period for New Regulations.--
        (1) In general.--New regulations and amendments to regulations 
    prescribed by a Federal banking agency which impose additional 
    reporting, disclosures, or other new requirements on insured 
    depository institutions shall take effect on the first day of a 
    calendar quarter which begins on or after the date on which the 
    regulations are published in final form, unless--
            (A) the agency determines, for good cause published with 
        the regulation, that the regulation should become effective 
        before such time;
            (B) the regulation is issued by the Board of Governors of 
        the Federal Reserve System in connection with the 
        implementation of monetary policy; or
            (C) the regulation is required to take effect on a date 
        other than the date determined under this paragraph pursuant to 
        any other Act of Congress.
        (2) Early compliance.--Any person who is subject to a 
    regulation described in paragraph (1) may comply with the 
    regulation before the effective date of the regulation.

SEC. 303. STREAMLINING OF REGULATORY REQUIREMENTS.

    (a) Review of Regulations; Regulatory Uniformity.--During the 2-
year period beginning on the date of enactment of this Act, each 
Federal banking agency shall, consistent with the principles of safety 
and soundness, statutory law and policy, and the public interest--
        (1) conduct a review of the regulations and written policies of 
    that agency to--
            (A) streamline and modify those regulations and policies in 
        order to improve efficiency, reduce unnecessary costs, and 
        eliminate unwarranted constraints on credit availability;
            (B) remove inconsistencies and outmoded and duplicative 
        requirements; and
            (C) with respect to regulations prescribed pursuant to 
        section 18(o) of the Federal Deposit Insurance Act, 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;
        (2) work jointly with the other Federal banking agencies to 
    make uniform all regulations and guidelines implementing common 
    statutory or supervisory policies; and
        (3) submit a joint report to the Congress at the end of such 2-
    year period detailing the progress of the agencies in carrying out 
    this subsection.
    (b) Review of Disclosures.--The Board of Governors of the Federal 
Reserve System, in consultation with the consumer advisory council to 
such Board, consumers, representatives of consumers, lenders, and other 
interested persons, shall--
        (1) review the regulations and written policies of the Board 
    with respect to disclosures pursuant to the Truth in Lending Act 
    with regard to variable-rate mortgages in order to simplify the 
    disclosures, if necessary, and make the disclosures more meaningful 
    and comprehensible to consumers;
        (2) implement any necessary regulatory changes, consistent with 
    applicable law; and
        (3) not later than 2 years after completion of the review 
    required by paragraph (1), submit a report to the Congress on the 
    results of its actions taken in accordance with this subsection and 
    any recommended legislative actions.

SEC. 304. ELIMINATION OF DUPLICATIVE FILINGS.

    The Federal banking agencies shall work jointly--
        (1) to eliminate, to the extent practicable, duplicative or 
    otherwise unnecessary requests for information in connection with 
    applications or notices to the agencies; and
        (2) to harmonize, to the extent practicable, any inconsistent 
    publication and public notice requirements.

SEC. 305. COORDINATED AND UNIFIED EXAMINATIONS.

    (a) In General.--Section 10(d) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(d)) is amended by adding at the end the following new 
paragraphs:
        ``(6) Coordinated examinations.--To minimize the disruptive 
    effects of examinations on the operations of insured depository 
    institutions--
            ``(A) each appropriate Federal banking agency shall, to the 
        extent practicable and consistent with principles of safety and 
        soundness and the public interest--
                ``(i) coordinate examinations to be conducted by that 
            agency at an insured depository institution and its 
            affiliates;
                ``(ii) coordinate with the other appropriate Federal 
            banking agencies in the conduct of such examinations;
                ``(iii) work to coordinate with the appropriate State 
            bank supervisor--

                    ``(I) the conduct of all examinations made pursuant 
                to this subsection; and
                    ``(II) the number, types, and frequency of reports 
                required to be submitted to such agencies and 
                supervisors by insured depository institutions, and the 
                type and amount of information required to be included 
                in such reports; and

                ``(iv) use copies of reports of examinations of insured 
            depository institutions made by any other Federal banking 
            agency or appropriate State bank supervisor to eliminate 
            duplicative requests for information; and
            ``(B) not later than 2 years after the date of enactment of 
        the Riegle Community Development and Regulatory Improvement Act 
        of 1994, the Federal banking agencies shall jointly establish 
        and implement a system for determining which one of the Federal 
        banking agencies shall be the lead agency responsible for 
        managing a unified examination of each insured depository 
        institution and its affiliates, as required by this subsection.
        ``(7) Separate examinations permitted.--Notwithstanding 
    paragraph (6), each appropriate Federal banking agency may conduct 
    a separate examination in an emergency or under other exigent 
    circumstances, or when the agency believes that a violation of law 
    may have occurred.
        ``(8) Report.--At the time the system provided for in paragraph 
    (6) is established, the Federal banking agencies shall submit a 
    joint report describing the system to the Committee on Banking, 
    Housing, and Urban Affairs of the Senate and the Committee on 
    Banking, Finance and Urban Affairs of the House of Representatives. 
    Thereafter, the Federal banking agencies shall annually submit a 
    joint report to the Committee on Banking, Housing, and Urban 
    Affairs of the Senate and the Committee on Banking, Finance and 
    Urban Affairs of the House of Representatives regarding the 
    progress of the agencies in implementing the system and indicating 
    areas in which enhancements to the system, including legislature 
    improvements, would be appropriate.''.
    (b) State Access to Federal Agency Reports.--The first sentence of 
section 7(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)(2)(A)) is amended by inserting ``and, with respect to any State 
depository institution, any appropriate State bank supervisor for such 
institution,'' after ``The Corporation''.
    SEC. 306. EIGHTEEN-MONTH EXAMINATION RULE FOR CERTAIN SMALL 
      INSTITUTIONS.
    (a) In General.--Section 10(d)(4) of the Federal Deposit Insurance 
Act (12 U.S.C. 1820(d)(4)) is amended--
        (1) in subparagraph (A), by striking ``$100,000,000'' and 
    inserting ``$250,000,000'';
        (2) in subparagraph (C), by striking ``and its composite 
    condition was found to be outstanding; and'' and inserting ``and 
    its composite condition--
                ``(i) was found to be outstanding; or
                ``(ii) was found to be outstanding or good, in the case 
            of an insured depository institution that has total assets 
            of not more than $100,000,000;'';
        (3) by redesignating subparagraph (D) as subparagraph (E); and
        (4) by inserting after subparagraph (C) the following new 
    subparagraph:
            ``(D) the insured institution is not currently subject to a 
        formal enforcement proceeding or order by the Corporation or 
        the appropriate Federal banking agency; and''.
    (b) Agency Discretion To Raise Asset Limit.--Section 10(d) of the 
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding 
at the end the following new paragraph:
        ``(8) Agencies authorized to increase maximum asset amount of 
    institutions for certain purposes.--At any time after the end of 
    the 2-year period beginning on the date of enactment of the Riegle 
    Community Development and Regulatory Improvement Act of 1994, the 
    appropriate Federal Pbanking agency, in the agency's discretion, 
    may increase the maximum amount limitation contained in paragraph 
    (4)(C)(ii), by regulation, from $100,000,000 to an amount not to 
    exceed $175,000,000 for purposes of such paragraph, if the agency 
    determines that the greater amount would be consistent with the 
    principles of safety and soundness for insured depository 
    institutions.''.

SEC. 307. CALL REPORT SIMPLIFICATION.

    (a) Modernization of Call Report Filing and Disclosure System.--In 
order to reduce the administrative requirements pertaining to bank 
reports of condition, savings association financial reports, and bank 
holding company consolidated and parent-only financial statements, and 
to improve the timeliness of such reports and statements, the Federal 
banking agencies shall--
        (1) work jointly to develop a system under which--
            (A) insured depository institutions and their affiliates 
        may file such reports and statements electronically; and
            (B) the Federal banking agencies may make such reports and 
        statements available to the public electronically; and
        (2) not later than 1 year after the date of enactment of this 
    Act, report to the Congress and make recommendations for 
    legislation that would enhance efficiency for filers and users of 
    such reports and statements.
    (b) Uniform Reports and Simplification of Instructions.--The 
Federal banking agencies shall, consistent with the principles of 
safety and soundness, work jointly--
        (1) to adopt a single form for the filing of core information 
    required to be submitted under Federal law to all such agencies in 
    the reports and statements referred to in subsection (a); and
        (2) to simplify instructions accompanying such reports and 
    statements and to provide an index to the instructions that is 
    adequate to meet the needs of both filers and users.
    (c) Review of Call Report Schedule.--Each Federal banking agency 
shall--
        (1) review the information required by schedules supplementing 
    the core information referred to in subsection (b); and
        (2) eliminate requirements that are not warranted for reasons 
    of safety and soundness or other public purposes.

SEC. 308. REPEAL OF PUBLICATION REQUIREMENTS.

    (a) Revised Statutes.--Section 5211 of the Revised Statutes (12 
U.S.C. 161) is amended--
        (1) in the 5th sentence of subsection (a), by striking ``; and 
    the statement of resources'' and all that follows through ``as may 
    be required by the Comptroller''; and
        (2) in subsection (c), by striking the 4th sentence.
    (b) FDIA.--Section 7(a)(1) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(a)(1)) is amended by striking the 4th sentence.
    (c) Federal Reserve Act.--Section 9 of the Federal Reserve Act (12 
U.S.C. 324) is amended in the last sentence of the 6th undesignated 
paragraph, by striking ``and shall be published'' and all that follows 
through the end of the sentence and inserting a period.
    SEC. 309. REGULATORY APPEALS PROCESS, OMBUDSMAN, AND ALTERNATIVE 
      DISPUTE RESOLUTION.
    (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 Board shall establish an 
independent intra-agency appellate process. The process shall be 
available to review material supervisory determinations made at insured 
depository institutions or at insured credit unions that the agency 
supervises.
    (b) Review Process.--In establishing the independent appellate 
process under subsection (a), each agency shall ensure that--
        (1) any appeal of a material supervisory determination by an 
    insured depository institution or insured credit union is heard and 
    decided expeditiously; and
        (2) appropriate safeguards exist for protecting the appellant 
    from retaliation by agency examiners.
    (c) Comment Period.--Not later than 90 days after the date of 
enactment of this Act, each appropriate Federal banking agency and the 
National Credit Union Administration Board shall provide public notice 
and opportunity for comment on proposed guidelines for the 
establishment of an appellate process under this section.
    (d) Agency Ombudsman.--
        (1) Establishment required.--Not later than 180 days after the 
    date of enactment of this Act, each Federal banking agency and the 
    National Credit Union Administration Board shall appoint an 
    ombudsman.
        (2) Duties of ombudsman.--The ombudsman appointed in accordance 
    with paragraph (1) for any agency shall--
            (A) act as a liaison between the agency and any affected 
        person with respect to any problem such party may have in 
        dealing with the agency resulting from the regulatory 
        activities of the agency; and
            (B) assure that safeguards exist to encourage complainants 
        to come forward and preserve confidentiality.
    (e) Alternative Dispute Resolution Pilot Program.--
        (1) In general.--Not later than 18 months after the date of 
    enactment of this Act, each Federal banking agency and the National 
    Credit Union Administration Board shall develop and implement a 
    pilot program for using alternative means of dispute resolution of 
    issues in controversy (hereafter in this section referred to as the 
    ``alternative dispute resolution program'') that is consistent with 
    the requirements of subchapter IV of chapter 5 of title 5, United 
    States Code, if the parties to the dispute, including the agency, 
    agree to such proceeding.
        (2) Standards.--An alternative dispute resolution pilot program 
    developed under paragraph (1) shall--
            (A) be fair to all interested parties to a dispute;
            (B) resolve disputes expeditiously; and
            (C) be less costly than traditional means of dispute 
        resolution, including litigation.
        (3) Independent evaluation.--Not later than 18 months after the 
    date on which a pilot program is implemented under paragraph (1), 
    the Administrative Conference of the United States shall submit to 
    the Congress a report containing--
            (A) an evaluation of that pilot program;
            (B) the extent to which the pilot programs meet the 
        standards established under paragraph (2);
            (C) the extent to which parties to disputes were offered 
        alternative means of dispute resolution and the frequency with 
        which the parties, including the agencies, accepted or declined 
        to use such means; and
            (D) any recommendations of the Conference to improve the 
        alternative dispute resolution procedures of the Federal 
        banking agencies and the National Credit Union Administration 
        Board.
        (4) Implementation of program.--At any time after completion of 
    the evaluation under paragraph (3)(A), any Federal banking agency 
    and the National Credit Union Administration Board may implement an 
    alternative dispute resolution program throughout the agency, 
    taking into account the results of that evaluation.
        (5) Coordination with existing agency adr programs.--
            (A) Evaluation required.--If any Federal banking agency or 
        the National Credit Union Administration maintains an 
        alternative dispute resolution program as of the date of 
        enactment of this Act under any other provision of law, the 
        Administrative Conference of the United States shall include 
        such program in the evaluation conducted under paragraph 
        (3)(A).
            (B) Multiple adr programs.--No provision of this section 
        shall be construed as precluding any Federal banking agency or 
        the National Credit Union Administration Board from 
        establishing more than 1 alternative means of dispute 
        resolution.
    (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
        (1) Material supervisory determinations.--The term ``material 
    supervisory determinations''--
            (A) includes determinations relating to--
                (i) examination ratings;
                (ii) the adequacy of loan loss reserve provisions; and
                (iii) loan classifications on loans that are 
            significant to an institution; and
            (B) does not include a determination by a Federal banking 
        agency or the National Credit Union Administration Board to 
        appoint a conservator or receiver for an insured depository 
        institution or a liquidating agent for an insured credit union, 
        as the case may be, or a decision to take action pursuant to 
        section 38 of the Federal Deposit Insurance Act or section 212 
        of the Federal Credit Union Act, as appropriate.
        (2) Independent appellate process.--The term ``independent 
    appellate process'' means a review by an agency official who does 
    not directly or indirectly report to the agency official who made 
    the material supervisory determination under review.
        (3) Alternative means of dispute resolution.--The term 
    ``alternative means of dispute resolution'' has the meaning given 
    to such term in section 571 of title 5, United States Code.
        (4) Issues in controversy.--The term ``issues in controversy'' 
    means--
            (A) any final agency decision involving any claim against 
        an insured depository institution or insured credit union for 
        which the agency has been appointed conservator or receiver or 
        for which a liquidating agent has been appointed, as the case 
        may be;
            (B) any final action taken by an agency in the agency's 
        capacity as conservator or receiver for an insured depository 
        institution or by the liquidating agent appointed for an 
        insured credit union; and
            (C) any other issue for which the appropriate Federal 
        banking agency or the National Credit Union Administration 
        Board determines that alternative means of dispute resolution 
        would be appropriate.
    (g) Effect on Other Authority.--Nothing in this section shall 
affect the authority of an appropriate Federal banking agency or the 
National Credit Union Administration Board to take enforcement or 
supervisory action.
    SEC. 310. ELECTRONIC FILING OF CURRENCY TRANSACTION REPORTS.
    Section 123 of Public Law 91-508 (12 U.S.C. 1953) is amended by 
adding at the end the following new subsection:
    ``(c) Acceptance of Automated Records.--The Secretary shall permit 
an uninsured bank or financial institution to retain or maintain 
records referred to in subsection (a) in electronic or automated form, 
subject to terms and conditions established by the Secretary.''.

SEC. 311. BANK SECRECY ACT PUBLICATION REQUIREMENTS.

    (a) In General.--Subchapter II of chapter 53 of title 31, United 
States Code, is amended by adding at the end the following new section:

``SEC. 5329. STAFF COMMENTARIES.

    ``The Secretary shall--
        ``(1) publish all written rulings interpreting this subchapter; 
    and
        ``(2) annually issue a staff commentary on the regulations 
    issued under this subchapter.''.
    (b) Conforming Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 5328 the following new item:

``5329. Staff commentaries.''.
    SEC. 312. EXEMPTION OF BUSINESS LOANS FROM REAL ESTATE SETTLEMENT 
      PROCEDURES ACT REQUIREMENTS.
    The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 
et seq.) is amended by inserting after section 6 the following new 
section:

``SEC. 7. EXEMPTED TRANSACTIONS.

    ``This Act does not apply to credit transactions involving 
extensions of credit--
        ``(1) primarily for business, commercial, or agricultural 
    purposes; or
        ``(2) to government or governmental agencies or 
    instrumentalities.''.

SEC. 313. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.

    Section 5146 of the Revised Statutes (12 U.S.C. 72) is amended in 
the 1st sentence, by striking ``two thirds'' and inserting ``a 
majority''.

SEC. 314. HOLDING COMPANY AUDIT REQUIREMENTS.

    (a) In General.--Section 36(i) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831m(i)) is amended--
        (1) by redesignating paragraph (1) as subparagraph (A) and 
    indenting appropriately;
        (2) by striking ``Except with respect'' and inserting the 
    following:
        ``(1) In general.--Except with respect''; and
        (3) by striking paragraph (2) and inserting the following:
            ``(B) the institution--
                ``(i) has total assets, as of the beginning of such 
            fiscal year, of less than $5,000,000,000; or
                ``(ii) has--

                    ``(I) total assets, as of the beginning of such 
                fiscal year, of $5,000,000,000, or more; and
                    ``(II) a CAMEL composite rating of 1 or 2 under the 
                Uniform Financial Institutions Rating System (or an 
                equivalent rating by any such agency under a comparable 
                rating system) as of the most recent examination of 
                such institution by the Corporation or the appropriate 
                Federal banking agency.

        ``(2) Large institutions.--For purposes of this subsection, in 
    the case of an insured depository institution described in 
    paragraph (1)(B)(ii) that the Corporation determines to be a large 
    institution, the audit committee of the holding company of such an 
    institution shall not include any large customers of the 
    institution.
        ``(3) Applicability based on risk to fund.--The appropriate 
    Federal banking agency may require an institution with total assets 
    in excess of $9,000,000,000 to comply with this section, 
    notwithstanding the exemption provided by this subsection, if it 
    determines that such exemption would create a significant risk to 
    the affected deposit insurance fund if applied to that 
    institution.''.
    (b) Written Notice of Requirement for Audit of Quarterly Reports.--
Section 36(g)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1831m(g)(2)) is amended by adding at the end the following new 
subparagraph:
            ``(D) Notice to institution.--The Corporation shall 
        promptly notify an insured depository institution, in writing, 
        of a determination pursuant to subparagraph (A) to require a 
        review of such institution's quarterly financial reports.''.

SEC. 315. STATE REGULATION OF REAL ESTATE APPRAISALS.

    Section 1122 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3351) is amended--
        (1) by redesignating subsections (b) through (e) as subsections 
    (c) through (f), respectively;
        (2) by inserting after subsection (a) the following newP 
    subsection:
    ``(b) Reciprocity.--The Appraisal Subcommittee shall encourage the 
States to develop reciprocity agreements that readily authorize 
appraisers who are licensed or certified in one State (and who are in 
good standing with their State appraiser certifying or licensing 
agency) to perform appraisals in other States.''; and
        (3) in subsection (a)--
            (A) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C);
            (B) by striking ``A State'' and inserting the following:
        ``(1) In general.--A State''; and
            (C) by adding at the end the following new paragraph:
        ``(2) Fees for temporary practice.--A State appraiser 
    certifying or licensing agency shall not impose excessive fees or 
    burdensome requirements, as determined by the Appraisal 
    Subcommittee, for temporary practice under this subsection.''.
    SEC. 316. ACCELERATION OF EFFECTIVE DATE FOR INTERAFFILIATE 
      TRANSACTIONS.
    (a) Home Owners' Loan Act Amendment.--Section 11(a)(2) of the Home 
Owners' Loan Act (12 U.S.C. 1468(a)(2)) is amended by adding at the end 
the following new subparagraph:
            ``(C) Transition rule for well capitalized savings 
        associations.--
                ``(i) In general.--A savings association that is well 
            capitalized (as defined in section 38 of the Federal 
            Deposit Insurance Act), as determined without including 
            goodwill in calculating core capital, shall be treated as a 
            bank for purposes of section 23A(d)(1) and section 23B of 
            the Federal Reserve Act.
                ``(ii) Liability of commonly controlled depository 
            institutions.--Any savings association that engages under 
            clause (i) in a transaction that would not otherwise be 
            permissible under this subsection, and any affiliated 
            insured bank that is commonly controlled (as defined in 
            section 5(e)(9) of the Federal Deposit Insurance Act), 
            shall be subject to subsection (e) of section 5 of the 
            Federal Deposit Insurance Act as if paragraph (6) of that 
            subsection did not apply.''.
    (b) Repeal Provision.--Effective on January 1, 1995, subparagraph 
(C) of section 11(a)(2) of the Home Owners' Loan Act (12 U.S.C. 
1468(a)(2)) (as added by subsection (a) of this section) is repealed.

SEC. 317. COLLATERALIZATION OF PUBLIC DEPOSITS.

    Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)) is amended--
        (1) by redesignating paragraphs (1) through (4) as 
    subparagraphs (A) through (D), respectively, and indent 
    appropriately;
        (2) by striking ``No agreement'' and inserting the following:
        ``(1) In general.--No agreement''; and
        (3) by adding at the end the following new paragraph:
        ``(2) Public deposits.--An agreement to provide for the lawful 
    collateralization of deposits of a Federal, State, or local 
    governmental entity or of any depositor referred to in section 
    11(a)(2) shall not be deemed to be invalid pursuant to paragraph 
    (1)(B) solely because such agreement was not executed 
    contemporaneously with the acquisition of the collateral or with 
    any changes in the collateral made in accordance with such 
    agreement.''.

SEC. 318. MODIFICATION OF REGULATORY PROVISIONS.

    (a) In General.--Section 39(b) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831p-1(b), as added by section 132(a) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991) is amended to 
read as follows:
    ``(b) Asset Quality, Earnings, and Stock Valuation Standards.--Each 
appropriate Federal banking agency shall prescribe standards, by 
regulation or guideline, for all insured depository institutions 
relating to asset quality, earnings, and stock valuation that the 
agency determines to be appropriate.''.
    (b) Establishing Standards.--Section 39(d) of the Federal Deposit 
Insurance Act (12 U.S.C. 1831p-1(d), as added by section 132(a) of the 
Federal Deposit Insurance Corporation Improvement Act of 1991) is 
amended--
        (1) in the subsection heading, by striking ``by Regulation''; 
    and
        (2) in paragraph (1)--
            (A) in the 1st sentence, by inserting ``or guideline'' 
        before the period; and
            (B) in the 2d sentence, by inserting ``or guidelines'' 
        after ``Such regulations''.
    (c) Holding Companies Excluded From Scope of Standards.--Section 39 
of the Federal Deposit Insurance Act (12 U.S.C. 1831p-1, as added by 
section 132(a) of the Federal Deposit Insurance Corporation Improvement 
Act of 1991) is amended--
        (1) in subsections (a), by striking ``and depository 
    institution holding companies''; and
        (2) in subsection (e)--
            (A) by striking ``or company'' each place such term 
        appears;
            (B) in paragraphs (1)(A) and (2), by striking ``or 
        depository institution holding company'';
            (C) in paragraph (1)(A)--
                (i) by striking ``or (b) the agency shall require'' and 
            inserting the following: ``or (b)--
                ``(i) if such standard is prescribed by regulation of 
            the agency, the agency shall require''; and
                (ii) by striking the period at the end and inserting 
            the following: ``; and
                ``(ii) if such standard is prescribed by guideline, the 
            agency may require the institution to submit a plan 
            described in clause (i).''; and
            (D) in paragraph (1)(C)(i), by striking ``and companies''.
    (d) Effective Date.--The amendments made by this section shall be 
construed to have the same effective date as section 39 of the Federal 
Deposit Insurance Act, as provided in section 132(c) of the Federal 
Deposit Insurance Corporation Improvement Act of 1991.

SEC. 319. EXPEDITED PROCEDURES.

    (a) Amendments to the Bank Holding Company Act.--The 2d sentence of 
section 3(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1842(a)) is amended--
        (1) by striking ``or (B)'' and inserting ``(B)''; and
        (2) by inserting before the period the following: ``; or (C) 
    the acquisition, by a company, of control of a bank in a 
    reorganization in which a person or group of persons exchanges 
    their shares of the bank for shares of a newly formed bank holding 
    company and receives after the reorganization substantially the 
    same proportional share interest in the holding Pcompany 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--
                ``(i) immediately following the acquisition--

                    ``(I) the bank holding company meets the capital 
                and other financial standards prescribed by the Board 
                by regulation for such a bank holding company; and
                    ``(II) the bank is adequately capitalized (as 
                defined in section 38 of the Federal Deposit Insurance 
                Act);

                ``(ii) the holding company does not engage in any 
            activities other than those of managing and controlling 
            banks as a result of the reorganization;
                ``(iii) the company provides 30 days prior notice to 
            the Board and the Board does not object to such transaction 
            during such 30-day period; and
                ``(iv) the holding company will not acquire control of 
            any additional bank as a result of the reorganization.''.
    (b) Amendments to the Federal Deposit Insurance Act.--Section 
5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is 
amended--
        (1) by striking subparagraph (A) and inserting the following:
            ``(A) Conversions allowed.--Notwithstanding paragraph 
        (2)(A), and subject to the requirements of this paragraph, any 
        insured depository institution may participate in a transaction 
        described in clause (ii), (iii), or (iv) of paragraph (2)(B) 
        with the prior written approval of the responsible agency under 
        section 18(c)(2).'';
        (2) in subparagraph (E)--
            (A) in clause (i), by striking ``(and, in the event the 
        acquiring, assuming, or resulting depository institution is a 
        Bank Insurance Fund member which is a subsidiary of a bank 
        holding company, the Board)'';
            (B) in clause (ii), by striking ``or Board''; and
            (C) in clause (iv)--
                (i) by striking ``, and the appropriate Federal banking 
            agency for any depository institution holdingP company,'';
                (ii) by striking ``each''; and
                (iii) by striking ``, and any depository institution 
            holding company which controls such institution,'';
        (3) in subparagraph (F)--
            (A) by striking ``The Board'' and all that follows through 
        ``a Bank'' and inserting ``A Bank''; and
            (B) by striking ``unless the Board determines that'' and 
        inserting ``may not be the acquiring, assuming, or resulting 
        depository institution in a transaction under subparagraph (A) 
        unless''; and
        (4) by striking subparagraph (K).
    SEC. 320. EXEMPTION OF CERTAIN HOLDING COMPANY FORMATIONS FROM 
      REGISTRATION UNDER THE SECURITIES ACT OF 1933.
    Section 3(a) of the Securities Act of 1933 (15 U.S.C. 77c(a)) is 
amended by adding at the end the following new paragraph:
        ``(12) Any equity security issued in connection with the 
    acquisition by a holding company of a bank under section 3(a) of 
    the Bank Holding Company Act of 1956 or a savings association under 
    section 10(e) of the Home Owners' Loan Act, if--
            ``(A) the acquisition occurs solely as part of a 
        reorganization in which security holders exchange their shares 
        of a bank or savings association for shares of a newly formed 
        holding company with no significant assets other than 
        securities of the bank or savings association and the existing 
        subsidiaries of the bank or savings association;
            ``(B) the security holders receive, after that 
        reorganization, substantially the same proportional share 
        interests in the holding company as they held in the bank or 
        savings association, except for nominal changes in 
        shareholders' interests resulting from lawful elimination of 
        fractional interests and the exercise of dissenting 
        shareholders' rights under State or Federal law;
            ``(C) the rights and interests of security holders in the 
        holding company are substantially the same as those in the bank 
        or savings association prior to the transaction, other than as 
        may be required by law; and
            ``(D) the holding company has substantially the same assets 
        and liabilities, on a consolidated basis, as the bank or 
        savings association had prior to the transaction.
    For purposes of this paragraph, the term `savings association' 
    means a savings association (as defined in section 3(b) of the 
    Federal Deposit Insurance Act) the deposits of which are insured by 
    the Federal Deposit Insurance Corporation.''.
    SEC. 321. REDUCTION OF POST-APPROVAL WAITING PERIODS FOR CERTAIN 
      ACQUISITIONS AND MERGERS.
    (a) Acquisitions.--Section 11(b)(1) of the Bank Holding Company Act 
of 1956 (12 U.S.C. 1849(b)(1)) is amended by inserting before the 
period at the end of the 4th sentence the following: ``or, if the Board 
has not received any adverse comment from the Attorney General of the 
United States relating to competitive factors, 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 15 calendar days after the 
date of approval''.
    (b) 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 the following: ``or, if the agency has not 
received any adverse comment from the Attorney General of the United 
States relating to competitive factors, 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 15 calendar days after the date of 
approval''.

SEC. 322. BANKERS' BANKS.

    (a) Ownership by Bankers' Banks.--
        (1) Section 5136.--Paragraph Seventh of section 5136 of the 
    Revised Statutes (12 U.S.C. 24) is amended in the 5th proviso--
            (A) by inserting ``or depository institution holding 
        companies (as defined in section 3 of the Federal Deposit 
        Insurance Act)'' after ``(except to the extent directors' 
        qualifying shares are required by law) by depository 
        institutions''; and
            (B) by striking ``services for other depository 
        institutions and their officers, directors and employees'' and 
        inserting the following: ``services to or for other depository 
        institutions, their holding companies, and the officers, 
        directors, and employees of such institutions and companies, 
        and in providing correspondent banking services at the request 
        of other depository institutions or their holding companies 
        (also referred to as a `banker's bank')''.
        (2) Section 5169.--Section 5169(b)(1) of the Revised Statutes 
    (12 U.S.C. 27(b)(1)) is amended--
            (A) by inserting ``or depository institution holding 
        companies'' after ``(except to the extent directors' qualifying 
        shares are required by law) by other depository institutions''; 
        and
            (B) by striking ``services for other depository 
        institutions and their officers, directors and employees'' and 
        inserting the following: ``services to or for other depository 
        institutions, their holding companies, and the officers, 
        directors, and employees of such institutions and companies, 
        and in providing correspondent banking services at the request 
        of other depository institutions or their holding companies 
        (also referred to as a `banker's bank')''.
    (b) Ownership by Savings Associations.--Section 5(c)(4) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding at the end 
the following new subparagraph:
            ``(E) Bankers' banks.--A Federal savings association may 
        purchase for its own account shares of stock of a bankers' 
        bank, described in Paragraph Seventh of section 5136 of the 
        Revised Statutes or in section 5169(b) of the Revised Statutes, 
        on the same terms and conditions as a national bank may 
        purchase such shares.''.
    (c) Technical and Conforming Amendments.--
        (1) Bank holding company act.--Section 3(e) of the Bank Holding 
    Company Act of 1956 (12 U.S.C. 1842(e)) is amended by striking the 
    2d sentence.
        (2) Management interlocks act.--Section 202(3)(D) of the 
    Depository Institution Management Interlocks Act (12 U.S.C. 
    3201(3)(D)) is amended by striking ``the voting securities'' the 
    first place such term appears and all that follows through the end 
    of the subparagraph and inserting ``and is a bankers' bank, 
    described in Paragraph Seventh of section 5136 of the Revised 
    Statutes; or''.
    (d) Lending Limit for Loans Secured by Securities.--Section 11(m) 
of the Federal Reserve Act (12 U.S.C. 248(m)) is amended by striking 
``10 percentum'' each place such term appears and inserting ``15 
percent''.

SEC. 323. BANK SERVICE CORPORATION ACT AMENDMENT.

    Section 5 of the Bank Service Corporation Act (12 U.S.C. 1865) is 
amended--
        (1) in subsection (a), by striking ``the prior approval of'' 
    and inserting ``prior notice, as determined by''; and
        (2) in subsection (c), by inserting ``or whether to approve or 
    disapprove any notice'' after ``approval''.

SEC. 324. MERGER TRANSACTION REPORTS.

    Section 18(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)(4)) is amended by adding at the end the following: 
``Notwithstanding the preceding sentence, a banking agency shall not be 
required to file a report requested by the responsible agency under 
this paragraph if such banking agency advises the responsible agency by 
the applicable date under the preceding sentence that the report is not 
necessary because none of the effects described in paragraph (5) are 
likely to occur as a result of the transaction.''.

SEC. 325. 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 newP 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 sellingP 
            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 the waiver of or failure 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. 326. LIMITING POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.
    (a) Amendment to the Federal Reserve Act.--The Federal Reserve Act 
(12 U.S.C. 221 et seq.) is amended by inserting after section 25B the 
following new section:

``SEC. 25C. POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

    ``(a) Exceptions From Repayment Requirement.--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--
        ``(1) an act of war, insurrection, or civil strife; or
        ``(2) 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.
    ``(b) Regulations.--The Board and the Comptroller of the Currency 
may jointly prescribe such regulations as they deem necessary to 
implement this section.''.
    (b) Conforming Amendments to the Federal DepositP Insurance Act.--
        (1) In general.--Section 18 of the Federal Deposit Insurance 
    Act (12 U.S.C. 1828) is amended by inserting after subsection (p) 
    the following new subsection:
    ``(q) Sovereign Risk.--Section 25C 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(l)(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 would be 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.--Section 25C of the Federal 
Reserve Act (as added by subsection (a)) shall not be applied 
retroactively and shall not be construed to affect or apply to any 
claim or cause of action addressed by that section arising from events 
or circumstances that occurred before the date of enactment of this 
Act.

SEC. 327. GAO REPORTS.

    Section 102(b)(1) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1825 note) is amended to read as 
follows:
        ``(1) Quarterly reporting.--Not later than 90 days after the 
    end of any calendar quarter in which the Federal Deposit Insurance 
    Corporation (hereafter in this section referred to as the 
    `Corporation') has any obligations pursuant to section 14 of the 
    Federal Deposit Insurance Act outstanding, the Comptroller General 
    of the United States shall submit a report on the Corporation's 
    compliance at the end of that quarter with section 15(c) of the 
    Federal Deposit Insurance Act to the Committee on Banking, Housing, 
    and Urban Affairs of the Senate and the Committee on Banking, 
    Finance and Urban Affairs of the House of Representatives. Such 
    report shall be included in the Comptroller General's audit report 
    for that year, as required by section 17 of the Federal Deposit 
    Insurance Act.''.
    SEC. 328. STUDY AND REPORT ON CAPITAL STANDARDS AND THEIR IMPACT ON 
      THE ECONOMY.
    (a) In General.--The Secretary of the Treasury, in consultation 
with the Federal banking agencies, shall conduct a study of the effect 
that the implementation of risk-based capital standards for depository 
institutions, 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.
    (b) Report.--
        (1) In general.--Before the end of the 1-year period beginning 
    on the date of enactment of this Act, the Secretary of the Treasury 
    shall submit a report to the Congress on the findings and 
    conclusions of the Secretary with respect to the study conducted 
    under subsection (a).
        (2) Recommendations.--The report shall contain any 
    recommendations with respect to capital standards that the 
    Secretary of the Treasury may determine to be appropriate.
    SEC. 329. STUDY ON THE IMPACT OF THE PAYMENT OF INTEREST ON 
      RESERVES.
    (a) Federal Reserve Study.--Not later than 180 days after the date 
of enactment of this Act, the Board of Governors of the Federal Reserve 
System, in consultation with the Federal Deposit Insurance Corporation 
and the National Credit Union Administration Board, shall conduct a 
study and report to the 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 a market rate of interest to 
    insured depository institutions on sterile reserves or, in the 
    alternative, providing for payment of such 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 
    the potential income lost by insured depository institutions; and
        (4) the impact that the 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.--Not later than 180 days after the date 
of enactment of this Act, the Director of the Office of Management and 
Budget and the Director of the Congressional Budget Office, in 
consultation with the Committees on the Budget of the Senate and the 
House of Representatives, shall jointly conduct a study and report to 
the Congress on the budgetary impact of--
        (1) paying a market rate of interest to insured depository 
    institutions on sterile reserves; and
        (2) paying such interest into the respective deposit insurance 
    funds.

SEC. 330. STUDY AND REPORT ON THE CONSUMER CREDIT SYSTEM.

    (a) Study.--The Secretary of the Treasury, in consultation with the 
Board of Governors of the Federal Reserve System, the Administrator of 
the Small Business Administration, the Secretary of Housing and Urban 
Development, and the other Federal banking agencies, shall conduct a 
study of the process, including any Federal laws, by which credit is 
made available for consumers and small businesses in order to identify 
procedures, including any Federal laws, which have the effect of--
        (1) reducing the amount of credit available for such purposes 
    or the number of persons eligible for such credit;
        (2) increasing the level of consumer inconvenience, cost, and 
    time delays in connection with the extension of consumer and small 
    business credit without corresponding benefit with respect to the 
    protection of consumers or small businesses or the safety and 
    soundness of insured depository institutions; and
        (3) increasing costs and burdens on insured depository 
    institutions, insured credit unions, and other lenders without 
    corresponding benefit with respect to the protection of consumers 
    or small business concerns or to the safety and soundness of 
    insured institutions.
    (b) Report.--
        (1) In general.--Not later than 1 year after the date of 
    enactment of this Act, the Secretary of the Treasury shall submit a 
    report to the Congress on the findings and conclusions of the 
    Secretary with respect to the study conducted under subsection (a).
        (2) Recommendations.--The report required by paragraph (1) 
    shall contain any recommendations for administrative action or 
    statutory changes that the Secretary of the Treasury may determine 
    to be appropriate.
    (c) Public Participation.--In conducting the study required by 
subsection (a), comments shall be solicited from consumers, 
representatives of consumers, insured depository institutions, insured 
credit unions, other lenders, and other interested parties.
    SEC. 331. CLARIFICATION OF PROVISIONS RELATING TO ADMINISTRATIVE 
      AUTONOMY.
    (a) Public Law 93-495.--Section 111 of Public Law 93-495 (12 U.S.C. 
250) is amended by inserting ``the Comptroller of the Currency,'' after 
``Federal Deposit Insurance Corporation,''.
    (b) Revised Statutes.--
        (1) Section 5240.--The third paragraph of section 5240 of the 
    Revised Statutes (12 U.S.C. 482) is amended by inserting ``or 
    section 301(f)(1) of title 31, United States Code,'' after 
    ``provisions of this section''.
        (2) Section 324.--Section 324 of the Revised Statutes (12 
    U.S.C. 1) is amended by adding at the end the following: ``The 
    Comptroller of the Currency shall have the same authority over 
    matters within the jurisdiction of the Comptroller as the Director 
    of the Office of Thrift Supervision has over matters within the 
    Director's jurisdiction under section 3(b)(3) of the Home Owners' 
    Loan Act. The Secretary of the Treasury may not delay or prevent 
    the issuance of any rule or the promulgation of any regulation by 
    the Comptroller of the Currency.''.
        (3) Section 5239.--Section 5239 of the Revised Statutes (12 
    U.S.C. 93) is amended by adding at the end the following new 
    subsection:
    ``(d) Authority.--The Comptroller of the Currency may act in the 
Comptroller's own name and through the Comptroller's own attorneys in 
enforcing any provision of this title, regulations thereunder, or any 
other law or regulation, or in any action, suit, or proceeding to which 
the Comptroller of the Currency is a party.''.
    (c) Amendments to the Home Owners' Loan Act.--Section 3(b) of the 
Home Owners' Loan Act (12 U.S.C. 1462a(b)) isP amended--
        (1) in paragraph (3), by striking ``unless otherwise provided 
    by law'' and inserting ``(including agency enforcement actions) 
    unless otherwise specifically provided by law''; and
        (2) by adding at the end the following new paragraph:
        ``(4) Banking agency rulemaking.--The Secretary of the Treasury 
    may not delay or prevent the issuance of any rule or the 
    promulgation of any regulation by the Director.''.
    (d) Amendment to the Federal Reserve Act.--Section 11 of the 
Federal Reserve Act (12 U.S.C. 248) is amended by adding at the end the 
following new subsection:
    ``(p) Authority.--The Board may act in its own name and through its 
own attorneys in enforcing any provision of this title, regulations 
promulgated hereunder, or any other law or regulation, or in any 
action, suit, or proceeding to which the Board is a party and which 
involves the Board's regulation or supervision of any bank, bank 
holding company (as defined in section 2 of the Bank Holding Company 
Act of 1956), or other entity, or the administration of its 
operations.''.
    (e) Amendment to the Federal Deposit Insurance Act.--Section 9(a) 
of the Federal Deposit Insurance Act (12 U.S.C. 1819(a)) is amended in 
paragraph Fourth, by inserting ``by and through its own attorneys,'' 
after ``complain and defend,''.

SEC. 332. EXEMPTION FOR BUSINESS ACCOUNTS.

    Section 274(1) of the Truth in Savings Act (12 U.S.C. 4313(1)) is 
amended to read as follows:
        ``(1) Account.--The term `account' means any account intended 
    for use by and generally used by consumers primarily for personal, 
    family, or household purposes that is offered by a depository 
    institution into which a consumer deposits funds, including demand 
    accounts, time accounts, negotiable order of withdrawal accounts, 
    and share draft accounts.''.

SEC. 333. STUDY ON CHECK-RELATED FRAUD.

    (a) Study.--The Board of Governors of the Federal Reserve System 
(hereafter in this section referred to as the ``Board'') shall conduct 
a study on the advisability of extending the 1-business-day period 
specified in section 603(b)(1) of the Expedited Funds Availability Act, 
regarding availability of funds deposited by local checks, to 2 
business days.
    (b) Considerations.--In conducting the study under subsection (a), 
the Board shall consider--
        (1) whether there is a pattern of significant increases in 
    check-related losses at depository institutions attributable to the 
    provisions of the Expedited Funds Availability Act; and
        (2) whether extension of the time period referred to in 
    subsection (a) is necessary to diminish the volume of any such 
    check-related losses.
    (c) Report to the Congress.--Not later than 2 years after the date 
of enactment of this Act, the Board shall submit a report to the 
Congress concerning the results of the study conducted under this 
section and including any recommendations for legislative action.

SEC. 334. INSIDER LENDING.

    (a) Loans to Executive Officers by Member Banks.--Section 22(g)(2) 
of the Federal Reserve Act (12 U.S.C. 375a(2)) is amended by striking 
``With the specific prior approval of its board of directors, a 
member'' and inserting ``A member''.
    (b) Extensions of Credit to Executive Officers, Directors, and 
Principal Shareholders of Member Banks.--Section 22(h)(8) of the 
Federal Reserve Act (12 U.S.C. 375b(8)) is amended--
        (1) by striking ``member bank.--For'' and inserting the 
    following: ``member bank.--
            ``(A) In general.--For''; and
        (2) by adding at the end the following:
            ``(B) Exception.--The Board may, by regulation, make 
        exceptions to subparagraph (A), except as that subparagraph 
        makes applicable paragraph (2), for an executive officer or 
        director of a subsidiary of a company that controls the member 
        bank, if that executive officer or director does not have 
        authority to participate, and does not participate, in major 
        policymaking functions of the member bank.''.

SEC. 335. REVISIONS OF STANDARDS.

    Section 305(b)(1) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
        (1) in subparagraph (A), by striking ``and'' at the end;
        (2) in subparagraph (B), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new subparagraph:
            ``(C) take into account the size and activities of the 
        institutions and do not cause undue reporting burdens.''.

SEC. 336. ALTERNATIVE RULES FOR RADIO ADVERTISING.

    (a) Amendment to the Truth in Lending Act.--Section 184 of the 
Truth in Lending Act (15 U.S.C. 1667c) is amended--
        (1) by redesignating subsection (b) as subsection (c); and
        (2) by inserting after subsection (a) the following newP 
    subsection:
    ``(b)  Radio Advertisements.--
        ``(1) In general.--An advertisement by radio broadcast to aid, 
    promote, or assist, directly or indirectly, any consumer lease 
    shall be deemed to be in compliance with the requirements of 
    subsection (a) if such advertisement clearly and conspicuously--
            ``(A) states the information required by paragraphs (1) and 
        (2) of subsection (a);
            ``(B) states the number, amounts, due dates or periods of 
        scheduled payments, and the total of such payments under the 
        lease;
            ``(C) includes--
                ``(i) a referral to--

                    ``(I) a toll-free telephone number established in 
                accordance with paragraph (2) that may be used by 
                consumers to obtain the information required under 
                subsection (a); or
                    ``(II) a written advertisement that--

                        ``(aa) appears in a publication in general 
                    circulation in the community served by the radio 
                    station on which such advertisement is broadcast 
                    during the period beginning 3 days before any such 
                    broadcast and ending 10 days after such broadcast; 
                    and
                        ``(bb) includes the information required to be 
                    disclosed under subsection (a); and
                ``(ii) the name and dates of any publication referred 
            to in clause (i)(II); and
            ``(D) includes any other information which the Board 
        determines necessary to carry out this chapter.
        ``(2) Establishment of toll-free number.--
            ``(A) In general.--In the case of a radio broadcast 
        advertisement described in paragraph (1) that includes a 
        referral to a toll-free telephone number, the lessor who offers 
        the consumer lease shall--
                ``(i) establish such a toll-free telephone number not 
            later than the date on which the advertisement including 
            the referral is broadcast;
                ``(ii) maintain such telephone number for a period of 
            not less than 10 days, beginning on the date of any such 
            broadcast; and
                ``(iii) provide the information required under 
            subsection (a) with respect to the lease to any person who 
            calls such number.
            ``(B) Form of information.--The information required to be 
        provided under subparagraph (A)(iii) shall be provided verbally 
        or, if requested by the consumer, in written form.
        ``(3) No effect on other law.--Nothing in this subsection shall 
    affect the requirements of Federal law as such requirements apply 
    to advertisement by any medium other than radio broadcast.''.
    (b) Study of Advertising Rules.--Not later than 365 days after the 
date of enactment of this Act, the Board of Governors of the Federal 
Reserve System shall submit a report to the Congress on--
        (1) the current rules applicable to credit advertising;
        (2) how such rules could be modified to increase consumer 
    benefit and decrease creditor costs; and
        (3) how such rules could be modified, if at all, for radio 
    advertisements without diminishing consumer protection.

SEC. 337. DEPOSIT BROKER REGISTRATION.

    Section 29(g)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831f(g)(3)) is amended--
        (1) by inserting ``that is not well capitalized (as defined in 
    section 38)'' after ``includes any insured depository 
    institution'';
        (2) by striking ``of any insured depository'' and inserting 
    ``of such'';
        (3) by striking ``(with respect to such deposits)''; and
        (4) by striking ``having the same type of charter''.
    SEC. 338. AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGEMENT 
      INTERLOCKS ACT.
    (a) Management Exemption.--Section 206 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3205) is Pamended--
        (1) in subsections (a) and (b), by striking ``15 years after 
    the date of enactment of this title'' each place it appears and 
    inserting ``, subject to the requirements of subsection (c), 20 
    years after the date of enactment of this title''; and
        (2) by adding at the end the following new subsection:
    ``(c) Review of Existing Management Interlocks.--Upon the timely 
filing of a submission by a person petitioning to serve as a management 
official in more than 1 position pursuant to subsection (a) or (b), 
each appropriate Federal depository institutions regulatory agency 
shall, not later than 6 months after the date of enactment of this 
Act--
        ``(1) review, on a case-by-case basis, the circumstances under 
    which such person has served as a management official under the 
    provisions of subsection (a) or (b); and
        ``(2) permit the management official to continue to serve in 
    such position only if--
            ``(A) such person has provided a resolution from the boards 
        of directors of each affected depository institution, 
        depository holding company, or company described in subsection 
        (b), certifying to the appropriate Federal depository 
        institutions regulatory agency for each of the institutions 
        involved that there is no other qualified candidate from the 
        community described in paragraph (1) or (2) of section 203 
        who--
                ``(i) possesses the level of expertise necessary for 
            such service with respect to the affected depository 
            institution, depository holding company, or company 
            described in subsection (b); and
                ``(ii) is willing to serve as a management official at 
            the affected depository institution, depository holding 
            company, or company described in subsection (b); and
            ``(B) the appropriate Federal depository institutions 
        regulatory agency determines that continuation of service by 
        the management official does not produce an anticompetitive 
        effect with respect to each affected depository institution, 
        depository holding company, or company described in subsection 
        (b).''.
    (b) Amendments to Section 209.--Section 209 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3207) is amended--
        (1) by striking ``Rules'' and inserting ``(a) In General.--
    Rules'';
        (2) by striking ``, including rules or regulations which permit 
    service by a management official which would otherwise be 
    prohibited by section 203 or section 204,''; and
        (3) by adding at the end the following new subsections:
    ``(b) Regulatory Standards.--An appropriate Federal depository 
institution regulatory agency may permit, on a case-by-case basis, 
service by a management official which would otherwise be prohibited by 
section 203 or 204 only if--
        ``(1) the board of directors of the affected depository 
    institution, depository institution holding company, or company 
    described in section 206(b), provides a resolution to the 
    appropriate Federal depository institutions regulatory agency 
    certifying that there is no other candidate from the community 
    described in paragraph (1) or (2) of section 203 who--
            ``(A) possesses the level of expertise necessary for such 
        service with respect to the affected depository institution, 
        depository institution holding company, or company described in 
        section 206(b) and is not prohibited from service under section 
        203 or 204; and
            ``(B) is willing to serve as a management official at the 
        affected depository institution, depository institution holding 
        company, or company described in section 206(b); and
        ``(2) the appropriate Federal depository institutions 
    regulatory agency determines that--
            ``(A) the management official is critical to the safe and 
        sound operations of the affected depository institution, 
        depository institution holding company, or company described in 
        section 206(b);
            ``(B) continuation of service by the management official 
        does not produce an anticompetitive effect with respect to the 
        affected depository institution, depository institution holding 
        company, or company described in section 206(b); and
            ``(C) the management official meets such additional 
        requirements as the agency may impose.
    ``(c) Limited Exception for Management Official Consignment 
Program.--
        ``(1) In general.--Notwithstanding the requirements of 
    subsection (b), an appropriate Federal depository institutions 
    regulatory agency may establish a program to permit, on a case-by-
    case basis, service by a management official which would otherwise 
    be prohibited by section 203 or 204, for a period of not more than 
    2 years, if the agency determines that such service would--
            ``(A) improve the provision of credit to low- and moderate-
        income areas;
            ``(B) increase the competitive position of minority- and 
        woman-owned institutions; or
            ``(C) strengthen the management of newly chartered 
        institutions that are in an unsafe or unsound condition.
        ``(2) Extension of service period.--The appropriate Federal 
    depository institutions regulatory agency may extend the 2-year 
    period referred to in paragraph (1) for one additional period of 
    not more than 2 years, subject to making a new determination 
    described in subparagraphs (A) through (C) of paragraph (1).''.

SEC. 339. ADVERSE INFORMATION ABOUT CONSUMERS.

    Section 609(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(a)) is amended by adding at the end the following new paragraph:
        ``(4) The dates, original payees, and amounts of any checks 
    upon which is based any adverse characterization of the consumer, 
    included in the file at the time of the disclosure.''.

SEC. 340. SIMPLIFIED DISCLOSURE FOR EXISTING DEPOSITORS.

    (a) In General.--Section 43(b)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831t(b)(3)) is amended to read as follows:
        ``(3) Acknowledgement of disclosure.--
            ``(A) New depositors.--With respect to any depositor who 
        was not a depositor at the depository institution before June 
        19, 1994, receive any deposit for the account of such depositor 
        only if the depositor has signed a written acknowledgement 
        that--
                ``(i) the institution is not federally insured; and
                ``(ii) if the institution fails, the Federal Government 
            does not guarantee that the depositor will get back the 
            depositor's money.
            ``(B) Current depositors.--Receive any deposit after the 
        effective date of this paragraph for the account of any 
        depositor who was a depositor before June 19, 1994, only if--
                ``(i) the depositor has signed a written 
            acknowledgement described in subparagraph (A); or
                ``(ii) the institution has complied with the provisions 
            of subparagraph (C) which are applicable as of the date of 
            the deposit.
            ``(C) Alternative provision of notice to current 
        depositors.--
                ``(i) In general.--Transmit to each depositor who was a 
            depositor before June 19, 1994, and has not signed a 
            written acknowledgement described in subparagraph (A)--

                    ``(I) a card containing the information described 
                in clauses (i) and (ii) of subparagraph (A), and a line 
                for the signature of the depositor; and
                    ``(II) accompanying materials requesting the 
                depositor to sign the card, and return the signed card 
                to the institution.

                ``(ii) Manner and timing of notice.--

                    ``(I) First notice.--Make the transmission 
                described in clause (i) via first class mail not later 
                than September 12, 1994.

                    ``(II) Second notice.--Make a second transmission 
                described in clause (i) via first class mail not less 
                than 30 days and not more than 45 days after a 
                transmission to the depositor in accordance with 
                subclause (I), if the institution has not, by the date 
                of such mailing, received from the depositor a card 
                referred to in clause (i) which has been signed by the 
                depositor.
                    ``(III) Third notice.--Make a third transmission 
                described in clause (i) via first class mail not less 
                than 30 days and not more than 45 days after a 
                transmission to the depositor in accordance with 
                subclause (II), if the institution has not, by the date 
                of such mailing, received from the depositor a card 
                referred to in clause (i) which has been signed by the 
                depositor.''.

    (b) Effective Date.--Section 43(b)(3) of the Federal Deposit 
Insurance Act, as amended by subsection (a), shall take effect in 
accordance with section 151(a)(2)(D) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991.

SEC. 341. FEASIBILITY STUDY OF DATA BANK.

    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, the Federal Financial Institutions Examination 
Council shall--
        (1) study the feasibility, including the costs and benefits to 
    insured depository institutions, of establishing and maintaining a 
    data bank for reports submitted by any depository institution to a 
    Federal banking agency; and
        (2) report the results of such study to the Congress.
    (b) Additional Factors.--The study required under subsection (a) 
shall consider the feasibility of--
        (1) permitting depository institutions to file reports directly 
    with the data bank; and
        (2) permitting Federal banking agencies, State bank 
    supervisors, and the public to obtain access to any appropriate 
    report on file with the data bank which such agency or supervisor 
    or the public is otherwise authorized to receive.

SEC. 342. TIMELY COMPLETION OF CRA REVIEW.

    The comprehensive regulatory review of the Community Reinvestment 
Act of 1977 that, as of the date of enactment of this Act, is being 
conducted by the Federal banking agencies, shall be completed at the 
earliest practicable time.
    SEC. 343. TIME LIMIT ON AGENCY CONSIDERATION OF COMPLETED 
      APPLICATIONS.
    (a) In General.--Each Federal banking agency shall take final 
action on any application to the agency before the end of the 1-year 
period beginning on the date on which a completed application is 
received by the agency.
    (b) Waiver by Applicant Authorized.--Any person submitting an 
application to a Federal banking agency may waive the applicability of 
subsection (a) with respect to such application at any time.
    SEC. 344. WAIVER OF RIGHT OF RESCISSION FOR CERTAIN REFINANCING 
      TRANSACTIONS.
    Not later than 6 months after the date of enactment of this Act, 
the Board of Governors of the Federal Reserve System, in consultation 
with the consumer advisory council to such Board, consumers, 
representatives of consumers, lenders, and other interested parties, 
shall submit recommendations to the Congress regarding whether a waiver 
or modification, at the option of a consumer, of the right of 
rescission under section 125 of the Truth in Lending Act with respect 
to transactions which constitute a refinancing or consolidation (with 
no new advances) of the principal balance then due, and any accrued and 
unpaid finance charges of an existing extension of credit by a 
different creditor secured by an interest in the same property, would 
benefit consumers.

SEC. 345. CLARIFICATION OF RESPA DISCLOSURE REQUIREMENTS.

    Section 6(a)(1)(B) of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2605(a)(1)(B)) is amended--
        (1) by striking ``(B) for each of the most recent'' and 
    inserting ``(B) at the choice of the person making a federally 
    related mortgage loan--
                ``(i) for each of the most recent'';
        (2) by redesignating clauses (i) and (ii) as subclauses (I) and 
    (II), respectively, and indenting appropriately;
        (3) by striking ``and'' at the end of subclause (II) (as 
    redesignated by paragraph (2)) and inserting ``or''; and
        (4) by inserting after clause (i) (as redesignated by paragraph 
    (1)) the following new clause:
                ``(ii) a statement that the person making the loan has 
            previously assigned, sold, or transferred the servicing of 
            federally related mortgage loans; and''.
    SEC. 346. NOTICE PROCEDURES FOR BANK HOLDING COMPANIES TO SEEK 
      APPROVAL TO ENGAGE IN CERTAIN ACTIVITIES.
    Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) 
is amended--
        (1) by adding at the end the following new subsection:
    ``(j) Notice Procedures for Nonbanking Activities.--
        ``(1) General notice procedure.--
            ``(A) Notice requirement.--No bank holding company may 
        engage in any nonbanking activity or acquire or retain 
        ownership or control of the shares of a company engaged in 
        activities based on subsection (c)(8) or (a)(2) without 
        providing the Board with written notice of the proposed 
        transaction or activity at least 60 days before the transaction 
        or activity is proposed to occur or commence.
            ``(B) Contents of notice.--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.
            ``(C) Procedure for agency action.--
                ``(i) Notice of disapproval.--Any notice filed under 
            this subsection shall be deemed to be approved by the Board 
            unless, before the end of the 60-day period beginning on 
            the date the Board receives a complete notice under 
            subparagraph (A), the Board issues an order disapproving 
            the transaction or activity and setting forth the reasons 
            for disapproval.
                ``(ii) Extension of period.--The Board may extend the 
            60-day period referred to in clause (i) for an additional 
            30 days. The Board may further extend the period with the 
            agreement of the bank holding company submitting the notice 
            pursuant to thisP subsection.
                ``(iii) Determination of period in case of public 
            hearing.--In the event a hearing is requested or the Board 
            determines that a hearing is warranted, the Board may 
            extend the notice period provided in this subsection for 
            such time as is reasonably necessary to conduct a hearing 
            and to evaluate the hearing record. Such extension shall 
            not exceed the 91-day period beginning on the date that the 
            hearing record is complete.
            ``(D) Approval before end of period.--
                ``(i) In general.--Any transaction or activity may 
            commence before the expiration of any period for 
            disapproval established under this paragraph if the Board 
            issues a written notice of approval.
                ``(ii) Shorter periods by regulation.--The Board may 
            prescribe regulations which provide for a shorter notice 
            period with respect to particular activities or 
            transactions.
            ``(E) Extension of period.--In the case of any notice to 
        engage in, or to acquire or retain ownership or control of 
        shares of any company engaged in, any activity pursuant to 
        subsection (c)(8) or (a)(2) that has not been previously 
        approved by regulation, the Board may extend the notice period 
        under this subsection for an additional 90 days. The Board may 
        further extend the period with the agreement of the bank 
        holding company submitting the notice pursuant to this 
        subsection.
        ``(2) General standards for review.--
            ``(A) Criteria.--In connection with a notice under this 
        subsection, the Board shall consider whether performance of the 
        activity by a bank holding company or a subsidiary of such 
        company 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 of interests, or unsound banking 
        practices.
            ``(B) Grounds for disapproval.--The Board may deny any 
        proposed transaction or activity for which notice has been 
        submitted pursuant to this subsection if the bank holding 
        company submitting such notice neglects, fails, or refuses to 
        furnish the Board all the information required by the Board.
            ``(C) Conditional action.--Nothing in this subsection 
        limits the authority of the Board to impose conditions in 
        connection with an action under this section.''; and
        (2) in subsection (c), by striking the penultimate sentence.

SEC. 347. COMMERCIAL MORTGAGE RELATED SECURITIES.

    (a) In General.--Section 3(a)(41)(A)(i) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)(41)(A)(i)) is amended--
        (1) by striking ``or on a residential'' and inserting ``on a 
    residential''; and
        (2) by inserting before the semicolon ``, or on one or more 
    parcels of real estate upon which is located one or more commercial 
    structures''.
    (b) Amendment to the Revised Statutes.--Paragraph Seventh of 
section 5136 of the Revised Statutes (12 U.S.C. 24) is amended in the 
twelfth sentence, by striking ``(15 U.S.C. 78c(a)(41))), subject to 
such regulations'' and inserting ``(15 U.S.C. 78c(a)(41)). The 
exception provided for the securities described in subparagraphs (A), 
(B), and (C) shall be subject to such regulations''.
    (c) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the Comptroller of the Currency shall promulgate final 
regulations, in accordance with the thirteenth sentence of Paragraph 
Seventh of section 5136 of the Revised Statutes (as amended by 
subsection (b)), to carry out the amendments made by this section.
    (d) Effective Date.--The amendments made by this section shall 
become effective upon the date of promulgation of final regulations 
under subsection (c).
    (e) State Opt Out.--Notwithstanding the amendments made by this 
section, a note that is directly secured by a first lien on one or more 
parcels of real estate upon which is located one or more commercial 
structures shall not be considered to be a mortgage related security 
under section 3(a)(41) of the Securities Exchange Act of 1934 in any 
State that, prior to the expiration of 7 years after the date of 
enactment of this Act, enacts a statute that specifically refers to 
this section and either prohibits or provides for a more limited 
authority to purchase, hold, or invest in such securities by any 
person, trust, corporation, partnership, association, business trust, 
or business entity or class thereof than is provided by the amendments 
made by this subsection. The enactment by any State of any statute of 
the type described in the preceding sentence shall not affect the 
validity of any contractual commitment to purchase, hold, or invest 
that was made prior thereto, and shall not require the sale or other 
disposition of any securities acquired prior thereto.

SEC. 348. CLARIFYING AMENDMENT RELATING TO DATA COLLECTION.

    Section 7(a)(9) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)(9)) is amended by adding at the end the following: ``In 
prescribing reporting and other requirements for the collection of 
actual and accurate information pursuant to this paragraph, the 
Corporation shall minimize the regulatory burden imposed upon insured 
depository institutions that are well capitalized (as defined in 
section 38) while taking into account the benefit of the information to 
the Corporation, including the use of the information to enable the 
Corporation to more accurately determine the total amount of insured 
deposits in each insured depository institution for purposes of 
compliance with this Act.''.

SEC. 349. GUIDELINES FOR EXAMINATIONS.

    (a) Adequacy of State Examinations.--Section 10(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the 
end the following new paragraph:
        ``(9) Standards for determining adequacy of state 
    examinations.--The Federal Financial Institutions Examination 
    Council shall issue guidelines establishing standards to be used at 
    the discretion of the appropriate Federal banking agency for 
    purposes of making a determination under paragraph (3).''.
    (b) Effective Date of Initial Guidelines.--The initial guidelines 
required to be issued pursuant to the amendment made by subsection (a) 
shall become effective not later than 1 year after the date of 
enactment of this Act.
    SEC. 350. REVISING REGULATORY REQUIREMENTS FOR TRANSFERS OF ALL 
      TYPES OF ASSETS WITH RECOURSE.
    (a) Review and Revision of Regulations.--
        (1) In general.--During the 180-day period beginning on the 
    date of enactment of this Act, each appropriate Federal banking 
    agency shall, consistent with the principles of safety and 
    soundness and the public interest--
            (A) review the agency's regulations and written policies 
        relating to transfers of assets with recourse by insured 
        depository institutions; and
            (B) in consultation with the other Federal banking 
        agencies, promulgate regulations that better reflect the 
        exposure of an insured depository institution to credit risk 
        from transfers of assets with recourse.
        (2) Regulations required.--Before the end of the 180-day period 
    beginning on the date of enactment of this Act, each appropriate 
    Federal banking agency shall prescribe the regulations developed 
    pursuant to paragraph (1)(B).
    (b) Regulations Required.--
        (1) In general.--After the end of the 180-day period beginning 
    on the date of enactment of this Act, the amount of risk-based 
    capital required to be maintained, under regulations prescribed by 
    the appropriate Federal banking agency, by any insured depository 
    institution with respect to assets transferred with recourse by 
    such institution may not exceed the maximum amount of recourse for 
    which such institution is contractually liable under the recourse 
    agreement.
        (2) Exception for safety and soundness.--The appropriate 
    Federal banking agency may require any insured depository 
    institution to maintain risk-based capital in an amount greater 
    than the amount determined under paragraph (1), if the agency 
    determines, by regulation or order, that such higher amount is 
    necessary for safety and soundness reasons.
    (c) Coordination With Section 208(b).--This section shall not be 
construed as superseding the applicability of section 208(b).
    (d) Definitions.--For purposes of this section, the terms 
``appropriate Federal banking agency'', ``Federal banking agency'', and 
``insured depository institution'' have the same meanings as in section 
3 of the Federal Deposit Insurance Act.

                       TITLE IV--MONEY LAUNDERING

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Money Laundering Suppression Act 
of 1994''.
    SEC. 402. REFORM OF CTR EXEMPTION REQUIREMENTS TO REDUCE NUMBER AND 
      SIZE OF REPORTS CONSISTENT WITH EFFECTIVE LAW ENFORCEMENT.
    (a) In General.--Section 5313 of title 31, United States Code, is 
amended by adding at the end the following new subsections:
    ``(d) Mandatory Exemptions From Reporting Requirements.--
        ``(1) In general.--The Secretary of the Treasury shall exempt, 
    pursuant to section 5318(a)(6), a depository institution from the 
    reporting requirements of subsection (a) with respect to 
    transactions between the depository institution and the following 
    categories of entities:
            ``(A) Another depository institution.
            ``(B) A department or agency of the United States, any 
        State, or any political subdivision of any State.
            ``(C) Any entity established under the laws of the United 
        States, any State, or any political subdivision of any State, 
        or under an interstate compact between 2 or more States, which 
        exercises governmental authority on behalf of the United States 
        or any such State or political subdivision.
            ``(D) Any business or category of business the reports on 
        which have little or no value for law enforcement purposes.
        ``(2) Notice of exemption.--The Secretary of the Treasury shall 
    publish in the Federal Register at such times as the Secretary 
    determines to be appropriate (but not less frequently than once 
    each year) a list of all the entities whose transactions with a 
    depository institution are exempt under this subsection from the 
    reporting requirements of subsection (a).
    ``(e) Discretionary Exemptions From Reporting Requirements.--
        ``(1) In general.--The Secretary of the Treasury may exempt, 
    pursuant to section 5318(a)(6), a depository institution from the 
    reporting requirements of subsection (a) with respect to 
    transactions between the depository institution and a qualified 
    business customer of the institution on the basis of information 
    submitted to the Secretary by the institution in accordance with 
    procedures which the Secretary shall establish.
        ``(2) Qualified business customer defined.--For purposes of 
    this subsection, the term `qualified business customer' means a 
    business which--
            ``(A) maintains a transaction account (as defined in 
        section 19(b)(1)(C) of the Federal Reserve Act) at the 
        depository institution;
            ``(B) frequently engages in transactions with theP 
        depository institution which are subject to the reporting 
        requirements of subsection (a); and
            ``(C) meets criteria which the Secretary determines are 
        sufficient to ensure that the purposes of this subchapter are 
        carried out without requiring a report with respect to such 
        transactions.
        ``(3) Criteria for exemption.--The Secretary of the Treasury 
    shall establish, by regulation, the criteria for granting and 
    maintaining an exemption under paragraph (1).
        ``(4) Guidelines.--
            ``(A) In general.--The Secretary of the Treasury shall 
        establish guidelines for depository institutions to follow in 
        selecting customers for an exemption under thisP subsection.
            ``(B) Contents.--The guidelines may include a description 
        of the types of businesses or an itemization of specific 
        businesses for which no exemption will be granted under this 
        subsection to any depository institution.
        ``(5) Annual review.--The Secretary of the Treasury shall 
    prescribe regulations requiring each depository institution to--
            ``(A) review, at least once each year, the qualified 
        business customers of such institution with respect to whom an 
        exemption has been granted under this subsection; and
            ``(B) upon the completion of such review, resubmit 
        information about such customers, with such modifications as 
        the institution determines to be appropriate, to the Secretary 
        for the Secretary's approval.
        ``(6) 2-year phase-in provision.--During the 2-year period 
    beginning on the date of enactment of the Money Laundering 
    Suppression Act of 1994, this subsection shall be applied by the 
    Secretary on the basis of such criteria as the Secretary determines 
    to be appropriate to achieve an orderly implementation of the 
    requirements of this subsection.
    ``(f) Provisions Applicable to Mandatory and Discretionary 
Exemptions.--
        ``(1) Limitation on liability of depository institutions.--No 
    depository institution shall be subject to any penalty which may be 
    imposed under this subchapter for the failure of the institution to 
    file a report with respect to a transaction with a customer for 
    whom an exemption has been granted under subsection (d) or (e) 
    unless the institution--
            ``(A) knowingly files false or incomplete information to 
        the Secretary with respect to the transaction or the customer 
        engaging in the transaction; or
            ``(B) has reason to believe at the time the exemption is 
        granted or the transaction is entered into that the customer or 
        the transaction does not meet the criteria established for 
        granting such exemption.
        ``(2) Coordination with other provisions.--Any exemption 
    granted by the Secretary of the Treasury under section 5318(a) in 
    accordance with this section, and any transaction which is subject 
    to such exemption, shall be subject to any other provision of law 
    applicable to such exemption, including--
            ``(A) the authority of the Secretary, under section 
        5318(a)(6), to revoke such exemption at any time; and
            ``(B) any requirement to report, or any authority to 
        require a report on, any possible violation of any law or 
        regulation or any suspected criminal activity.
    ``(g) Depository Institution Defined.--For purposes of this 
section, the term `depository institution'--
        ``(1) has the meaning given to such term in section 19(b)(1)(A) 
    of the Federal Reserve Act; and
        ``(2) includes--
            ``(A) any branch, agency, or commercial lending company (as 
        such terms are defined in section 1(b) of the International 
        Banking Act of 1978);
            ``(B) any corporation chartered under section 25A of the 
        Federal Reserve Act; and
            ``(C) any corporation having an agreement or undertaking 
        with the Board of Governors of the Federal Reserve System under 
        section 25 of the Federal Reserve Act.''.
    (b) Report Reduction Goal; Reports.--
        (1) In general.--In implementing the amendment made by 
    subsection (a), the Secretary of the Treasury shall seek to reduce, 
    within a reasonable period of time, the number of reports required 
    to be filed in the aggregate by depository institutions pursuant to 
    section 5313(a) of title 31, United States Code, by at least 30 
    percent of the number filed during the year preceding the date of 
    enactment of this Act.
        (2) Interim report.--The Secretary of the Treasury shall submit 
    a report to the Congress not later than the end of the 180-day 
    period beginning on the date of enactment of this Act on the 
    progress made by the Secretary in implementing the amendment made 
    by subsection (a).
        (3) Annual report.--The Secretary of the Treasury shall submit 
    an annual report to the Congress after the end of each of the first 
    5 calendar years which begin after the date of enactment of this 
    Act on the extent to which the Secretary has reduced the overall 
    number of currency transaction reports filed with the Secretary 
    pursuant to section 5313(a) of title 31, United States Code, 
    consistent with the purposes of such section and effective law 
    enforcement.
    (c) Streamlined Currency Transaction Reports.--The Secretary of the 
Treasury shall take such action as may be appropriate to--
        (1) redesign the format of reports required to be filed under 
    section 5313(a) of title 31, United States Code, by any financial 
    institution (as defined in section 5312(a)(2) of such title) to 
    eliminate the need to report information which has little or no 
    value for law enforcement purposes; and
        (2) reduce the time and effort required to prepare such report 
    for filing by any such financial institution under such section.
    SEC. 403. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS TRANSACTIONS.
    (a) In General.--Section 5318(g) of title 31, United States Code, 
is amended by adding at the end the following new paragraph:
        ``(4) Single designee for reporting suspiciousP transactions.--
            ``(A) In general.--In requiring reports under paragraph (1) 
        of suspicious transactions, the Secretary of the Treasury shall 
        designate, to the extent practicable and appropriate, a single 
        officer or agency of the United States to whom such reports 
        shall be made.
            ``(B) Duty of designee.--The officer or agency of the 
        United States designated by the Secretary of the Treasury 
        pursuant to subparagraph (A) shall refer any report of a 
        suspicious transaction to any appropriate law enforcement or 
        supervisory agency.
            ``(C) Coordination with other reporting requirements.--
        Subparagraph (A) shall not be construed as precluding any 
        supervisory agency for any financial institution from requiring 
        the financial institution to submit any information or report 
        to the agency or another agency pursuant to any other 
        applicable provision of law.''.
    (b) Reports.--
        (1) Reports required.--The Secretary of the Treasury shall 
    submit an annual report to the Congress at the times required under 
    paragraph (2) on the number of suspicious transactions reported to 
    the officer or agency designated under section 5318(g)(4)(A) of 
    title 31, United States Code, during the period covered by the 
    report and the disposition of such reports.
        (2) Time for submitting reports.--The 1st report required under 
    paragraph (1) shall be filed before the end of the 1-year period 
    beginning on the date of enactment of the Money Laundering 
    Suppression Act of 1994 and each subsequent report shall be filed 
    within 90 days after the end of each of the 5 calendar years which 
    begin after such date of enactment.
    (c) Designation Required To Be Made Expeditiously.--The initial 
designation of an officer or agency of the United States pursuant to 
the amendment made by subsection (a) shall be made before the end of 
the 180-day period beginning on the date of enactment of this Act.
    SEC. 404. IMPROVEMENT OF IDENTIFICATION OF MONEY LAUNDERING 
      SCHEMES.
    (a) Enhanced Training, Examinations, and Referrals by Banking 
Agencies.--Before the end of the 6-month period beginning on the date 
of enactment of this Act, each appropriate Federal banking agency 
shall, in consultation with the Secretary of the Treasury and other 
appropriate law enforcement agencies--
        (1) review and enhance training and examination procedures to 
    improve the identification of money laundering schemes involving 
    depository institutions; and
        (2) review and enhance procedures for referring cases to any 
    appropriate law enforcement agency.
    (b) Improved Reporting of Criminal Schemes by Law Enforcement 
Agencies.--The Secretary of the Treasury and each appropriate law 
enforcement agency shall provide, on a regular basis, information 
regarding money laundering schemes and activities involving depository 
institutions to each appropriate Federal banking agency in order to 
enhance each agency's ability to examine for and identify money 
laundering activity.
    (c) Report to Congress.--The Financial Institutions Examination 
Council shall submit a report on the progress made in carrying out 
subsection (a) and the usefulness of information received pursuant to 
subsection (b) to the Congress by the end of the 1-year period 
beginning on the date of enactment of this Act.
    (d) Definition.--For purposes of this section, the term 
``appropriate Federal banking agency'' has the same meaning as in 
section 3 of the Federal Deposit Insurance Act.
    SEC. 405. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN BANKS SUBJECT TO 
      RECORDKEEPING AND REPORTING REQUIREMENTS.
    Section 5312(a)(3) of title 31, United States Code, is amended--
        (1) by striking ``and'' at the end of subparagraph (A);
        (2) by striking the period at the end of subparagraph (B) and 
    inserting ``; and''; and
        (3) by adding at the end the following new subparagraph:
            ``(C) as the Secretary of the Treasury shall provide by 
        regulation for purposes of section 5316, checks, drafts, notes, 
        money orders, and other similar instruments which are drawn on 
        or by a foreign financial institution and are not in bearer 
        form.''.
    SEC. 406. IMPOSITION OF CIVIL MONEY PENALTIES BY APPROPRIATE 
      FEDERAL BANKING AGENCIES.
    Section 5321 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) Delegation of Assessment Authority to BankingP Agencies.--
        ``(1) In general.--The Secretary of the Treasury shall 
    delegate, in accordance with section 5318(a)(1) and subject to such 
    terms and conditions as the Secretary may impose in accordance with 
    paragraph (3), any authority of the Secretary to assess a civil 
    money penalty under this section on depository institutions (as 
    defined in section 3 of the Federal Deposit Insurance Act) to the 
    appropriate Federal banking agencies (as defined in such section 
    3).
        ``(2) Authority of agencies.--Subject to any term or condition 
    imposed by the Secretary of the Treasury under Pparagraph (3), the 
    provisions of this section shall apply to an appropriate Federal 
    banking agency to which is delegated any authority of the Secretary 
    under this section in the same manner such provisions apply to the 
    Secretary.
        ``(3) Terms and conditions.--
            ``(A) In general.--The Secretary of the Treasury shall 
        prescribe by regulation the terms and conditions which shall 
        apply to any delegation under paragraph (1).
            ``(B) Maximum dollar amount.--The terms and conditions 
        authorized under subparagraph (A) may include, in the 
        Secretary's sole discretion, a limitation on the amount of any 
        civil penalty which may be assessed by an appropriate Federal 
        banking agency pursuant to a delegation under paragraph (1).''.
    SEC. 407. UNIFORM STATE LICENSING AND REGULATION OF CHECK CASHING, 
      CURRENCY EXCHANGE, AND MONEY TRANSMITTING BUSINESSES.
    (a) Uniform Laws and Enforcement.--For purposes of preventing money 
laundering and protecting the payment system from fraud and abuse, it 
is the sense of the Congress that the several States should--
        (1) establish uniform laws for licensing and regulating 
    businesses which--
            (A) provide check cashing, currency exchange, or money 
        transmitting or remittance services, or issue or redeem money 
        orders, travelers' checks, and other similar instruments; and
            (B) are not depository institutions (as defined in section 
        5313(g) of title 31, United States Code); and
        (2) provide sufficient resources to the appropriate State 
    agency to enforce such laws and regulations prescribed pursuant to 
    such laws.
    (b) Model Statute.--It is the sense of the Congress that the 
several States should develop, through the auspices of the National 
Conference of Commissioners on Uniform State Laws, the American Law 
Institute, or such other forum as the States may determine to be 
appropriate, a model statute to carry out the goals described in 
subsection (a) which would include theP following:
        (1) Licensing requirements.--A requirement that any business 
    described in subsection (a)(1) be licensed and regulated by an 
    appropriate State agency in order to engage in any such activity 
    within the State.
        (2) Licensing standards.--A requirement that--
            (A) in order for any business described in subsection 
        (a)(1) to be licensed in the State, the appropriate State 
        agency shall review and approve--
                (i) the business record and the capital adequacy of the 
            business seeking the license; and
                (ii) the competence, experience, integrity, and 
            financial ability of any individual who--

                    (I) is a director, officer, or supervisory employee 
                of such business; or
                    (II) owns or controls such business; and

            (B) any record, on the part of any business seeking the 
        license or any person referred to in subparagraph (A)(ii), of--
                (i) any criminal activity;
                (ii) any fraud or other act of personal dishonesty;
                (iii) any act, omission, or practice which constitutes 
            a breach of a fiduciary duty; or
                (iv) any suspension or removal, by any agency or 
            department of the United States or any State, from 
            participation in the conduct of any federally or State 
            licensed or regulated business,
        may be grounds for the denial of any such license by the 
        appropriate State agency.
        (3) Reporting requirements.--A requirement that any business 
    described in subsection (a)(1)--
            (A) disclose to the appropriate State agency the fees 
        charged to consumers for services described in subsection 
        (a)(1)(A); and
            (B) conspicuously disclose to the public, at each location 
        of such business, the fees charged to consumers for such 
        services.
        (4) Procedures to ensure compliance with federal cash 
    transaction reporting requirements.--A civil or criminal penalty 
    for operating any business referred to in paragraph (1) without 
    establishing and complying with appropriate procedures to ensure 
    compliance with subchapter II of chapter 53 of title 31, United 
    States Code (relating to records and reports on monetary 
    instruments transactions).
        (5) Criminal penalties for operation of business without a 
    license.--A criminal penalty for operating any business referred to 
    in paragraph (1) without a license within the State after the end 
    of an appropriate transition period beginning on the date of 
    enactment of such model statute by the State.
    (c) Study Required.--The Secretary of the Treasury shall conduct a 
study of--
        (1) the progress made by the several States in developing and 
    enacting a model statute which--
            (A) meets the requirements of subsection (b); and
            (B) furthers the goals of--
                (i) preventing money laundering by businesses which are 
            required to be licensed under any such statute; and
                (ii) protecting the payment system, including the 
            receipt, payment, collection, and clearing of checks, from 
            fraud and abuse by such businesses; and
        (2) the adequacy of--
            (A) the activity of the several States in enforcing the 
        requirements of such statute; and
            (B) the resources made available to the appropriate State 
        agencies for such enforcement activity.
    (d) Report Required.--Not later than the end of the 3-year period 
beginning on the date of enactment of this Act and not later than the 
end of each of the first two 1-year periods beginning after the end of 
such 3-year period, the Secretary of the Treasury shall submit a report 
to the Congress containing the findings and recommendations of the 
Secretary in connection with the study under subsection (c), together 
with such recommendations for legislative and administrative action as 
the Secretary may determine to be appropriate.
    (e) Recommendations in Cases of Inadequate Regulation and 
Enforcement by States.--If the Secretary of the Treasury determines 
that any State has been unable to--
        (1) enact a statute which meets the requirements described in 
    subsection (b);
        (2) undertake adequate activity to enforce such statute; or
        (3) make adequate resources available to the appropriate State 
    agency for such enforcement activity,
the report submitted pursuant to subsection (d) shall contain 
recommendations of the Secretary which are designed to facilitate the 
enactment and enforcement by the State of such a statute.
    (f) Federal Funding Study.--
        (1) Study required.--The Secretary of the Treasury shall 
    conduct a study to identify possible available sources of Federal 
    funding to cover costs which will be incurred by the States in 
    carrying out the purposes of this section.
        (2) Report.--The Secretary of the Treasury shall submit a 
    report to the Congress on the study conducted pursuant to paragraph 
    (1) not later than the end of the 18-month period beginning on the 
    date of enactment of this Act.
    SEC. 408. REGISTRATION OF MONEY TRANSMITTING BUSINESSES TO PROMOTE 
      EFFECTIVE LAW ENFORCEMENT.
    (a) Findings and Purposes.--
        (1) Findings.--The Congress hereby finds the following:
            (A) Money transmitting businesses are subject to the 
        recordkeeping and reporting requirements of subchapter II of 
        chapter 53 of title 31, United States Code.
            (B) Money transmitting businesses are largely unregulated 
        businesses and are frequently used in sophisticated schemes 
        to--
                (i) transfer large amounts of money which are the 
            proceeds of unlawful enterprises; and
                (ii) evade the requirements of such subchapter II, the 
            Internal Revenue Code of 1986, and other laws of the United 
            States.
            (C) Information on the identity of money transmitting 
        businesses and the names of the persons who own or control, or 
        are officers or employees of, a money transmitting business 
        would have a high degree of usefulness in criminal, tax, or 
        regulatory investigations and proceedings.
        (2) Purpose.--It is the purpose of this section to establish a 
    registration requirement for businesses engaged in providing check 
    cashing, currency exchange, or money transmitting or remittance 
    services, or issuing or redeeming money orders, travelers' checks, 
    and other similar instruments to assist the Secretary of the 
    Treasury, the Attorney General, and other supervisory and law 
    enforcement agencies to effectively enforce the criminal, tax, and 
    regulatory laws and prevent such money transmitting businesses from 
    engaging in illegal activities.
    (b) In General.--Subchapter II of chapter 53 of title 31, United 
States Code, is amended by adding at the end the following new section:

``Sec. 5330. Registration of money transmitting businesses

    ``(a) Registration With Secretary of the Treasury Required.--
        ``(1) In general.--Any person who owns or controls a money 
    transmitting business shall register the business (whether or not 
    the business is licensed as a money transmitting business in any 
    State) with the Secretary of the Treasury not later than the end of 
    the 180-day period beginning on the later of--
            ``(A) the date of enactment of the Money Laundering 
        Suppression Act of 1994; or
            ``(B) the date on which the business is established.
        ``(2) Form and manner of registration.--Subject to the 
    requirements of subsection (b), the Secretary of the Treasury shall 
    prescribe, by regulation, the form and manner for registering a 
    money transmitting business pursuant to paragraph (1).
        ``(3) Businesses remain subject to state law.--This section 
    shall not be construed as superseding any requirement of State law 
    relating to money transmitting businesses operating in such State.
        ``(4) False and incomplete information.--The filing of false or 
    materially incomplete information in connection with the 
    registration of a money transmitting business shall be considered 
    as a failure to comply with the requirements of this subchapter.
    ``(b) Contents of Registration.--The registration of a money 
transmitting business under subsection (a) shall include the following 
information:
        ``(1) The name and location of the business.
        ``(2) The name and address of each person who--
            ``(A) owns or controls the business;
            ``(B) is a director or officer of the business; or
            ``(C) otherwise participates in the conduct of the affairs 
        of the business.
        ``(3) The name and address of any depository institution at 
    which the business maintains a transaction account (as defined in 
    section 19(b)(1)(C) of the Federal Reserve Act).
        ``(4) An estimate of the volume of business in the coming year 
    (which shall be reported annually to the Secretary).
        ``(5) Such other information as the Secretary of the Treasury 
    may require.
    ``(c) Agents of Money Transmitting Businesses.--
        ``(1) Maintenance of lists of agents of money transmitting 
    businesses.--Pursuant to regulations which the Secretary of the 
    Treasury shall prescribe, each money transmitting business shall--
            ``(A) maintain a list containing the names and addresses of 
        all persons authorized to act as an agent for such business in 
        connection with activities described in subsection (d)(1)(A) 
        and such other information about such agents as the Secretary 
        may require; and
            ``(B) make the list and other information available on 
        request to any appropriate law enforcement agency.
        ``(2) Treatment of agent as money transmitting business.--The 
    Secretary of the Treasury shall prescribe regulations establishing, 
    on the basis of such criteria as the Secretary determines to be 
    appropriate, a threshold point for treating an agent of a money 
    transmitting business as a money transmitting business for purposes 
    of this section.
    ``(d) Definitions.--For purposes of this section, the following 
definitions shall apply:
        ``(1) Money transmitting business.--The term `money 
    transmitting business' means any business other than the United 
    States Postal Service which--
            ``(A) provides check cashing, currency exchange, or money 
        transmitting or remittance services, or issues or redeems money 
        orders, travelers' checks, and other similar instruments;
            ``(B) is required to file reports under section 5313; and
            ``(C) is not a depository institution (as defined in 
        section 5313(g)).
        ``(2) Money transmitting service.--The term `money transmitting 
    service' includes accepting currency or funds denominated in the 
    currency of any country and transmitting the currency or funds, or 
    the value of the currency or funds, by any means through a 
    financial agency or institution, a Federal reserve bank or other 
    facility of the Board of Governors of the Federal Reserve System, 
    or an electronic funds transfer network.
    ``(e) Civil Penalty for Failure To Comply With Registration 
Requirements.--
        ``(1) In general.--Any person who fails to comply with any 
    requirement of this section or any regulation prescribed under this 
    section shall be liable to the United States for a civil penalty of 
    $5,000 for each such violation.
        ``(2) Continuing violation.--Each day a violation described in 
    paragraph (1) continues shall constitute a separate violation for 
    purposes of such paragraph.
        ``(3) Assessments.--Any penalty imposed under this subsection 
    shall be assessed and collected by the Secretary of the Treasury in 
    the manner provided in section 5321 and any such assessment shall 
    be subject to the provisions of such section.''.
    (c) Criminal Penalty for Failure To Comply With Registration 
Requirements.--Section 1960(b)(1) of title 18, United States Code, is 
amended to read as follows:
        ``(1) the term `illegal money transmitting business' means a 
    money transmitting business which affects interstate or foreign 
    commerce in any manner or degree and--
            ``(A) is intentionally operated without an appropriate 
        money transmitting license in a State where such operation is 
        punishable as a misdemeanor or a felony under State law; or
            ``(B) fails to comply with the money transmitting business 
        registration requirements under section 5330 of title 31, 
        United States Code, or regulations prescribed under such 
        section;''.
    (d) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 5329 (as added by section 311) the following new 
item:

``5330. Registration of money transmitting businesses.''.

SEC. 409. UNIFORM FEDERAL REGULATION OF CASINOS.

    Section 5312(a)(2) of title 31, United States Code, is amended--
        (1) by redesignating subparagraphs (X) and (Y) as subparagraphs 
    (Y) and (Z), respectively; and
        (2) by inserting after subparagraph (W) the following new 
    subparagraph:
            ``(X) a casino, gambling casino, or gaming establishment 
        with an annual gaming revenue of more than $1,000,000 which--
                ``(i) is licensed as a casino, gambling casino, or 
            gaming establishment under the laws of any State or any 
            political subdivision of any State; or
                ``(ii) is an Indian gaming operation conducted under or 
            pursuant to the Indian Gaming Regulatory Act other than an 
            operation which is limited to class I gaming (as defined in 
            section 4(6) of such Act);''.
    SEC. 410. AUTHORITY TO GRANT EXEMPTIONS TO STATES WITH EFFECTIVE 
      REGULATION AND ENFORCEMENT.
    (a) In General.--Section 5318(a) of title 31, United States Code, 
is amended--
        (1) by striking ``and'' at the end of paragraph (4);
        (2) by redesignating paragraph (5) as paragraph (6); and
        (3) by inserting after paragraph (4) the following new 
    paragraph:
        ``(5) exempt from the requirements of this subchapter any class 
    of transactions within any State if the Secretary determines that--
            ``(A) under the laws of such State, that class of 
        transactions is subject to requirements substantially similar 
        to those imposed under this subchapter; and
            ``(B) there is adequate provision for the enforcement of 
        such requirements; and''.
    (b) Technical and Conforming Amendment.--The penultimate sentence 
of section 5318(a)(6) of title 31, United States Code (as so 
redesignated by the amendment made by subsection (a) of this section) 
is amended by inserting ``under this paragraph or paragraph (5)'' after 
``exemption''.
    SEC. 411. CRIMINAL AND CIVIL PENALTIES FOR STRUCTURING DOMESTIC AND 
      INTERNATIONAL TRANSACTIONS.
    (a) Criminal Penalty.--Section 5324 of title 31, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) Criminal Penalty.--
        ``(1) In general.--Whoever violates this section shall be fined 
    in accordance with title 18, United States Code, imprisoned for not 
    more than 5 years, or both.
        ``(2) Enhanced penalty for aggravated cases.--Whoever violates 
    this section while violating another law of the United States or as 
    part of a pattern of any illegal activity involving more than 
    $100,000 in a 12-month period shall be fined twice the amount 
    provided in subsection (b)(3) or (c)(3) (as the case may be) of 
    section 3571 of title 18, United States Code, imprisoned for not 
    more than 10 years, or both.''.
    (b) Amendment Relating to Civil Penalty.--Section 5321(a)(4)(A) of 
title 31, United States Code, is amended by striking ``willfully''.
    (c) Technical and Conforming Amendments.--
        (1) Subsections (a) and (b) of section 5322 of title 31, United 
    States Code, are amended by inserting ``or 5324'' after ``section 
    5315'' each place such term appears.
        (2) The following sections are each amended by striking 
    ``section 5322 of title 31'' and inserting ``section 5322 or 5324 
    of title 31'' each place such term appears in such sections:
            (A) Sections 8(g)(1)(A)(ii), 8(w)(1)(B), and 11(c)(5)(M) of 
        the Federal Deposit Insurance Act.
            (B) Sections 131(a)(2), 206(h)(1)(C), 206(i)(1)(A)(ii), and 
        206(v)(1)(B) of the Federal Credit Union Act.
            (C) Section 5239(d)(1)(B) of the Revised Statutes of the 
        United States (as redesignated by section 413(b)(2) of this 
        Act).
            (D) Section 5(w)(1)(B) of the Home Owners' Loan Act.
            (E) Sections 984(a), 986(a), and 1956(g) (the first place 
        it appears) of title 18, United States Code.

SEC. 412. GAO STUDY OF CASHIERS' CHECKS.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study to--
        (1) determine the extent to which the practice of issuing of 
    cashiers' checks by financial institutions is vulnerable to money 
    laundering schemes;
        (2) determine the extent to which additional recordkeeping 
    requirements should be imposed on financial institutions which 
    issue cashiers' checks; and
        (3) analyze such other factors relating to the use and 
    regulation of cashiers' checks as the Comptroller General 
    determines to be appropriate.
    (b) Report Required.--Before the end of the 6-month period 
beginning on the date of enactment of this Act, the Comptroller General 
shall submit a report to the Congress containing--
        (1) the findings and conclusions of the Comptroller General in 
    connection with the study conducted pursuant to subsection (a); and
        (2) such recommendations for legislative and administrative 
    action as the Comptroller General may determine to beP appropriate.

SEC. 413. TECHNICAL AMENDMENTS AND CORRECTIONS.

    (a) Title 31, U.S.C., Amendments.--
        (1) Section 5321(a)(5)(A) of title 31, United States Code, is 
    amended by inserting ``any violation of'' after ``causing''.
        (2) Section 5324(a) of title 31, United States Code, is 
    amended--
            (A) by striking ``section 5313(a), section 5325, or the 
        regulations issued thereunder or section 5325 or regulations 
        prescribed under such section 5325'' each place such term 
        appears and inserting ``section 5313(a) or 5325 or any 
        regulation prescribed under any such section''; and
            (B) by striking ``with respect to such transaction''.
    (b) Amendments Relating to Title 31, U.S.C.--
        (1) Effective as of the date of enactment of the Annunzio-Wylie 
    Anti-Money Laundering Act, section 1517(b) of such Act is amended 
    by striking ``5314'' and inserting ``5318''.
        (2) Section 5239 of the Revised Statutes of the United States 
    is amended by redesignating the 2d subsection (c) (as added by 
    section 1502(a) of the Annunzio-Wylie Anti-Money Laundering Act) as 
    subsection (d).
    (c) Title 18, U.S.C., Amendments.--
        (1) Section 1956 of title 18, United States Code, isP amended--
            (A) in subsection (a)(2)--
                (i) by inserting ``not more than'' before ``$500,000''; 
            and
                (ii) by striking ``transfer.'' each place such term 
            appears and inserting ``transfer'';
            (B) in subsection (b)--
                (i) by inserting ``or (a)(3)'' after ``(a)(1)''; and
                (ii) by striking ``transfer.'' and inserting 
            ``transfer'';
            (C) in subsection (c)(7)(B)(iii), by inserting a close 
        parenthesis after ``1978'';
            (D) in subsection (c)(7)(D), by striking ``section 9(c) of 
        the Food Stamp Act of 1977'' and inserting ``section 15 of the 
        Food Stamp Act of 1977'';
            (E) in subsection (c)(7)(E), by striking the period which 
        follows a period;
            (F) in subsection (e), by striking ``Evironmental'' and 
        inserting ``Environmental''; and
            (G) by redesignating subsection (g), the second place it 
        appears, as subsection (h).
        (2) Section 1957(f)(1) of title 18, United States Code, is 
    amended by striking the comma which follows a comma.
    (d) Repeal of Obsolete Technical Correction to Section 1956 of 
Title 18, U.S.C.--Section 3557(2)(E) of Public Law 101-647 is repealed, 
effective on the date of enactment of such Public Law.

                TITLE V--NATIONAL FLOOD INSURANCE REFORM

SEC. 501. SHORT TITLE.

    This title may be cited as the ``National Flood Insurance Reform 
Act of 1994''.

                        Subtitle A--Definitions

SEC. 511. FLOOD DISASTER PROTECTION ACT OF 1973.

    (a) In General.--Section 3(a) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4003(a)) is amended--
        (1) by striking paragraph (5) and inserting the following new 
    paragraph:
        ``(5) `Federal entity for lending regulation' means the Board 
    of Governors of the Federal Reserve System, the Federal Deposit 
    Insurance Corporation, the Comptroller of the Currency, the Office 
    of Thrift Supervision, the National Credit Union Administration, 
    and the Farm Credit Administration, and with respect to a 
    particular regulated lending institution means the entity primarily 
    responsible for the supervision of the institution;'';
        (2) in paragraph (6), by striking the period at the end and 
    inserting a semicolon; and
        (3) by inserting after paragraph (6) the following new 
    paragraphs:
        ``(7) `Federal agency lender' means a Federal agency that makes 
    direct loans secured by improved real estate or a mobile home, to 
    the extent such agency acts in such capacity;
        ``(8) the term `improved real estate' means real estate upon 
    which a building is located;
        ``(9) `lender' means a regulated lending institution or Federal 
    agency lender;
        ``(10) `regulated lending institution' means any bank,P savings 
    and loan association, credit union, farm credit bank, Federal land 
    bank association, production credit association, or similar 
    institution subject to the supervision of a Federal entity for 
    lending regulation; and
        ``(11) `servicer' means the person responsible for receiving 
    any scheduled periodic payments from a borrower pursuant to the 
    terms of a loan, including amounts for taxes, insurance premiums, 
    and other charges with respect to the property securing the loan, 
    and making the payments of principal and interest and such other 
    payments with respect to the amounts received from the borrower as 
    may be required pursuant to the terms of the loan.''.
    (b) Conforming Amendment.--Section 202(b) of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4106(b)) is amended by striking 
``Federal instrumentality described in such section shall by regulation 
require the institutions'' and inserting ``Federal entity for lending 
regulation shall by regulation require the regulated lending 
institutions described in such section, and each Federal agency lender 
shall issue regulations requiring the Federal agency lender,''.

SEC. 512. NATIONAL FLOOD INSURANCE ACT OF 1968.

    (a) In General.--Section 1370(a) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4121(a)) is amended--
        (1) in paragraph (5), by striking ``and'' at the end;
        (2) in paragraph (6), by striking the period at the end and 
    inserting a semicolon; and
        (3) by inserting after paragraph (6) the following newP 
    paragraphs:
        ``(7) the term `repetitive loss structure' means a structure 
    covered by a contract for flood insurance under this title that has 
    incurred flood-related damage on 2 occasions during a 10-year 
    period ending on the date of the event for which a second claim is 
    made, in which the cost of repair, on the average, equaled or 
    exceeded 25 percent of the value of the structure at the time of 
    each such flood event;
        ``(8) the term `Federal agency lender' means a Federal agency 
    that makes direct loans secured by improved real estate or a mobile 
    home, to the extent such agency acts in such capacity;
        ``(9) the term `Federal entity for lending regulation' means 
    the Board of Governors of the Federal Reserve System, the Federal 
    Deposit Insurance Corporation, the Comptroller of the Currency, the 
    Office of Thrift Supervision, the National Credit Union 
    Administration, and the Farm Credit Administration, and with 
    respect to a particular regulated lending institution means the 
    entity primarily responsible for the supervision of the 
    institution;
        ``(10) the term `improved real estate' means real estate upon 
    which a building is located;
        ``(11) the term `lender' means a regulated lending institution 
    or Federal agency lender;
        ``(12) the term `natural and beneficial floodplain functions' 
    means--
            ``(A) the functions associated with the natural or 
        relatively undisturbed floodplain that (i) moderate flooding, 
        retain flood waters, reduce erosion and sedimentation, and 
        mitigate the effect of waves and storm surge from storms, and 
        (ii) reduce flood related damage; and
            ``(B) ancillary beneficial functions, including maintenance 
        of water quality and recharge of ground water, that reduce 
        flood related damage;
        ``(13) the term `regulated lending institution' means any bank, 
    savings and loan association, credit union, farm credit bank, 
    Federal land bank association, production credit association, or 
    similar institution subject to the supervision of a PFederal entity 
    for lending regulation; and
        ``(14) the term `servicer' means the person responsible for 
    receiving any scheduled periodic payments from a borrower pursuant 
    to the terms of a loan, including amounts for taxes, insurance 
    premiums, and other charges with respect to the property securing 
    the loan, and making the payments of principal and interest and 
    such other payments with respect to the amounts received from the 
    borrower as may be required pursuant to the terms of the loan.''.
    (b) Conforming Amendment.--Section 1322(d) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4029(d)) is amended by striking 
``federally supervised, approved, regulated or insured financial 
institution'' and inserting ``regulated lending institution or PFederal 
agency lender''.

           Subtitle B--Compliance and Increased Participation

    SEC. 521. NONWAIVER OF FLOOD PURCHASE REQUIREMENT FOR RECIPIENTS OF 
      FEDERAL DISASTER ASSISTANCE.
    Section 311(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5154(b)) is amended by adding at 
the end the following new sentence: ``The requirements of this 
subsection may not be waived under section 301.''.

SEC. 522. EXPANDED FLOOD INSURANCE PURCHASE REQUIREMENTS.

    (a) In General.--Section 102(b) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a(b)) is amended to read as follows:
    ``(b) Requirement for Mortgage Loans.--
        ``(1) Regulated lending institutions.--Each Federal entity for 
    lending regulation (after consultation and coordination with the 
    Financial Institutions Examination Council established under the 
    Federal Financial Institutions Examination Council Act of 1974) 
    shall by regulation direct regulated lending institutions not to 
    make, increase, extend, or renew any loan secured by improved real 
    estate or a mobile home located or to be located in an area that 
    has been identified by the Director as an area having special flood 
    hazards and in which flood insurance has been made available under 
    the National Flood Insurance Act of 1968, unless the building or 
    mobile home and any personal property securing such loan is covered 
    for the term of the loan by flood insurance in an amount at least 
    equal to the outstanding principal balance of the loan or the 
    maximum limit of coverage made available under the Act with respect 
    to the particular type of property, whichever is less.
        ``(2) Federal agency lenders.--A Federal agency lender may not 
    make, increase, extend, or renew any loan secured by improved real 
    estate or a mobile home located or to be located in an area that 
    has been identified by the Director as an area having special flood 
    hazards and in which flood insurance has been made available under 
    the National Flood Insurance Act of 1968, unless the building or 
    mobile home and any personal property securing such loan is covered 
    for the term of the loan by flood insurance in the amount provided 
    in paragraph (1). Each Federal agency lender shall issue any 
    regulations necessary to carry out this paragraph. Such regulations 
    shall be consistent with and substantially identical to the 
    regulations issued under paragraph (1).
        ``(3) Government-sponsored enterprises for housing.--The 
    Federal National Mortgage Association and the Federal Home Loan 
    Mortgage Corporation shall implement procedures reasonably designed 
    to ensure that, for any loan that is--
            ``(A) secured by improved real estate or a mobile home 
        located in an area that has been identified, at the time of the 
        origination of the loan or at any time during the term of the 
        loan, by the Director as an area having special flood hazards 
        and in which flood insurance is available under the National 
        Flood Insurance Act of 1968, and
            ``(B) purchased by such entity,
    the building or mobile home and any personal property securing the 
    loan is covered for the term of the loan by flood insurance in the 
    amount provided in paragraph (1).
        ``(4) Applicability.--
            ``(A) Existing coverage.--Except as provided in 
        subparagraph (B), paragraph (1) shall apply on the date of 
        enactment of the Riegle Community Development and Regulatory 
        Improvement Act of 1994.
            ``(B) New coverage.--Paragraphs (2) and (3) shall apply 
        only with respect to any loan made, increased, extended, or 
        renewed after the expiration of the 1-year period beginning on 
        the date of enactment of the Riegle Community Development and 
        Regulatory Improvement Act of 1994. Paragraph (1) shall apply 
        with respect to any loan made, increased, extended, or renewed 
        by any lender supervised by the Farm Credit Administration only 
        after the expiration of the period under this subparagraph.
            ``(C) Continued effect of regulations.--Notwithstanding any 
        other provision of this subsection, the regulations to carry 
        out paragraph (1), as in effect immediately before the date of 
        enactment of the Riegle Community Development and Regulatory 
        Improvement Act of 1994, shall continue to apply until the 
        regulations issued to carry out paragraph (1) as amended by 
        section 522(a) of such Act take effect.''.
    (b) Exemption for Small Loans.--Section 102(c) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(c)) is amended--
        (1) by striking ``(c) Notwithstanding'' and inserting the 
    following:
    ``(c) Exceptions to Purchase Requirements.--
        ``(1) State-owned property.--Notwithstanding''; and
        (2) by adding at the end the following new paragraph:
        ``(2) Small loans.--Notwithstanding any other provision of this 
    section, subsections (a) and (b) shall not apply to any loan 
    having--
            ``(A) an original outstanding principal balance of $5,000 
        or less; and
            ``(B) a repayment term of 1 year or less.''.

SEC. 523. ESCROW OF FLOOD INSURANCE PAYMENTS.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a) is amended by adding at the end the following new subsection:
    ``(d) Escrow of Flood Insurance Payments.--
        ``(1) Regulated lending institutions.--Each Federal entity for 
    lending regulation (after consultation and coordination with the 
    Financial Institutions Examination Council) shall by regulation 
    require that, if a regulated lending institution requires the 
    escrowing of taxes, insurance premiums, fees, or any other charges 
    for a loan secured by residential improved real estate or a mobile 
    home, then all premiums and fees for flood insurance under the 
    National Flood Insurance Act of 1968 for the real estate or mobile 
    home shall be paid to the regulated lending institution or other 
    servicer for the loan in a manner sufficient to make payments as 
    due for the duration of the loan. Upon receipt of the premiums, the 
    regulated lending institution or servicer of the loan shall deposit 
    the premiums in an escrow account on behalf of the borrower. Upon 
    receipt of a notice from the Director or the provider of the 
    insurance that insurance premiums are due, the regulated lending 
    institution or servicer shall pay from the escrow account to the 
    provider of the insurance the amount of insurance premiums owed.
        ``(2) Federal agency lenders.--Each Federal agency lender shall 
    by regulation require and provide for escrow and payment of any 
    flood insurance premiums and fees relating to residential improved 
    real estate and mobile homes securing loans made by the Federal 
    agency lender under the circumstances and in the manner provided 
    under paragraph (1). Any regulations issued under this paragraph 
    shall be consistent with and substantially identical to the 
    regulations issued under paragraph (1).
        ``(3) Applicability of respa.--Escrow accounts established 
    pursuant to this subsection shall be subject to the provisions of 
    section 10 of the Real Estate Settlement Procedures Act of 1974.
        ``(4) Definition.--For purposes of this subsection, the term 
    `residential improved real estate' means improved real estate for 
    which the improvement is a residential building.
        ``(5) Applicability.--This subsection shall apply only with 
    respect to any loan made, increased, extended, or renewed after the 
    expiration of the 1-year period beginning on the date of enactment 
    of the Riegle Community Development and Regulatory Improvement Act 
    of 1994.''.

SEC. 524. PLACEMENT OF FLOOD INSURANCE BY LENDERS.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a), as amended by the preceding provisions of this title, is 
further amended by adding at the end the following new subsection:
    ``(e) Placement of Flood Insurance by Lender.--
        ``(1) Notification to borrower of lack of coverage.--If, at the 
    time of origination or at any time during the term of a loan 
    secured by improved real estate or by a mobile home located in an 
    area that has been identified by the Director (at the time of the 
    origination of the loan or at any time during the term of the loan) 
    as an area having special flood hazards and in which flood 
    insurance is available under the National Flood Insurance Act of 
    1968, the lender or servicer for the loan determines that the 
    building or mobile home and any personal property securing the loan 
    is not covered by flood insurance or is covered by such insurance 
    in an amount less than the amount required for the property 
    pursuant to paragraph (1), (2), or (3) of subsection (b), the 
    lender or servicer shall notify the borrower under the loan that 
    the borrower should obtain, at the borrower's expense, an amount of 
    flood insurance for the building or mobile home and such personal 
    property that is not less than the amount under subsection (b)(1), 
    for the term of the loan.
        ``(2) Purchase of coverage on behalf of borrower.--If the 
    borrower fails to purchase such flood insurance within 45 days 
    after notification under paragraph (1), the lender or servicer for 
    the loan shall purchase the insurance on behalf of the borrower and 
    may charge the borrower for the cost of premiums and fees incurred 
    by the lender or servicer for the loan in purchasing the insurance.
        ``(3) Review of determination regarding requiredP purchase.--
            ``(A) In general.--The borrower and lender for a loan 
        secured by improved real estate or a mobile home may jointly 
        request the Director to review a determination of whether the 
        building or mobile home is located in an area having special 
        flood hazards. Such request shall be supported by technical 
        information relating to the improved real estate or mobile 
        home. Not later than 45 days after the Director receives the 
        request, the Director shall review the determination and 
        provide to the borrower and the lender with a letter stating 
        whether or not the building or mobile home is in an area having 
        special flood hazards. The determination of the Director shall 
        be final.
            ``(B) Effect of determination.--Any person to whom a 
        borrower provides a letter issued by the Director pursuant to 
        subparagraph (A), stating that the building or mobile home 
        securing the loan of the borrower is not in an area having 
        special flood hazards, shall have no obligation under this 
        title to require the purchase of flood insurance for such 
        building or mobile home during the period determined by the 
        Director, which shall be specified in the letter and shall 
        begin on the date on which such letter is provided.
            ``(C) Effect of failure to respond.--If a request under 
        subparagraph (A) is made in connection with the origination of 
        a loan and the Director fails to provide a letter under 
        subparagraph (A) before the later of (i) the expiration of the 
        45-day period under such subparagraph, or (ii) the closing of 
        the loan, no person shall have an obligation under this title 
        to require the purchase of flood insurance for the building or 
        mobile home securing the loan until such letter is provided.
        ``(4) Applicability.--This subsection shall apply to all loans 
    outstanding on or after the date of enactment of the Riegle 
    Community Development and Regulatory Improvement Act of 1994.''.
    SEC. 525. PENALTIES FOR FAILURE TO REQUIRE FLOOD INSURANCE OR 
      NOTIFY.
    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a), as amended by the preceding provisions of this title, is 
further amended by adding at the end the following new subsections:
    ``(f) Civil Monetary Penalties for Failure To Require Flood 
Insurance or Notify.--
        ``(1) Civil monetary penalties against regulated lenders.--Any 
    regulated lending institution that is found to have a pattern or 
    practice of committing violations under paragraph (2) shall be 
    assessed a civil penalty by the appropriate Federal entity for 
    lending regulation in the amount provided under paragraph (5).
        ``(2) Lender violations.--The violations referred to in 
    paragraph (1) shall include--
            ``(A) making, increasing, extending, or renewing loans in 
        violation of--
                ``(i) the regulations issued pursuant to subsection (b) 
            of this section;
                ``(ii) the escrow requirements under subsection (d) of 
            this section; or
                ``(iii) the notice requirements under section 1364 of 
            the National Flood Insurance Act of 1968; or
            ``(B) failure to provide notice or purchase flood insurance 
        coverage in violation of subsection (e) of this section.
        ``(3) Civil monetary penalties against gse's.--
            ``(A) In general.--If the Federal National Mortgage 
        Association or the Federal Home Loan Mortgage Corporation is 
        found by the Director of the Office of Federal Housing 
        Enterprise Oversight of the Department of Housing and Urban 
        Development to have a pattern or practice of purchasing loans 
        in violation of the procedures established pursuant to 
        subsection (b)(3), the Director of such Office shall assess a 
        civil penalty against such enterprise in the amount provided 
        under paragraph (5) of this Psubsection.
            ``(B) Definition.--For purposes of this subsection, the 
        term `enterprise' means the Federal National Mortgage 
        Association or the Federal Home Loan Mortgage PCorporation.
        ``(4) Notice and hearing.--A penalty under this subsection may 
    be issued only after notice and an opportunity for a hearing on the 
    record.
        ``(5) Amount.--A civil monetary penalty under this subsection 
    may not exceed $350 for each violation under paragraph (2) or 
    paragraph (3). The total amount of penalties assessed under this 
    subsection against any single regulated lending institution or 
    enterprise during any calendar year may not exceed $100,000.
        ``(6) Lender compliance.--Notwithstanding any State or local 
    law, for purposes of this subsection, any regulated lending 
    institution that purchases flood insurance or renews a contract for 
    flood insurance on behalf of or as an agent of a borrower of a loan 
    for which flood insurance is required shall be considered to have 
    complied with the regulations issued under Psubsection (b).
        ``(7) Effect of transfer on liability.--Any sale or other 
    transfer of a loan by a regulated lending institution that has 
    committed a violation under paragraph (1), that occurs subsequent 
    to the violation, shall not affect the liability of the 
    transferring lender with respect to any penalty under this 
    subsection. A lender shall not be liable for any violations 
    relating to a loan committed by another regulated lending 
    institution that previously held the loan.
        ``(8) Deposit of penalties.--Any penalties collected under this 
    subsection shall be paid into the National Flood Mitigation Fund 
    under section 1367 of the National Flood Insurance Act of 1968.
        ``(9) Additional penalties.--Any penalty under this subsection 
    shall be in addition to any civil remedy or criminal penalty 
    otherwise available.
        ``(10) Statute of limitations.--No penalty may be imposed under 
    this subsection after the expiration of the 4-year period beginning 
    on the date of the occurrence of the violation for which the 
    penalty is authorized under thisP subsection.
    ``(g) Other Actions To Remedy Pattern of Noncompliance.--
        ``(1) Authority of federal entities for lending regulation.--A 
    Federal entity for lending regulation may require a regulated 
    lending institution to take such remedial actions as are necessary 
    to ensure that the regulated lending institution complies with the 
    requirements of the national flood insurance program if the Federal 
    agency for lending regulation makes a determination under paragraph 
    (2) regarding the regulated lending institution.
        ``(2) Determination of violations.--A determination under this 
    paragraph shall be a finding that--
            ``(A) the regulated lending institution has engaged in a 
        pattern and practice of noncompliance in violation of the 
        regulations issued pursuant to subsection (b), (d), or (e) or 
        the notice requirements under section 1364 of the National 
        Flood Insurance Act of 1968; and
            ``(B) the regulated lending institution has not 
        demonstrated measurable improvement in compliance despite the 
        assessment of civil monetary penalties under subsection (f).''.
    SEC. 526. FEES FOR DETERMINING APPLICABILITY OF FLOOD INSURANCE 
      PURCHASE REQUIREMENTS.
    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a) as amended by the preceding provisions of this title, is further 
amended by adding at the end the following new subsection:
    ``(h) Fee for Determining Location.--Notwithstanding any other 
Federal or State law, any person who makes a loan secured by improved 
real estate or a mobile home or any servicer for such a loan may charge 
a reasonable fee for the costs of determining whether the building or 
mobile home securing the loan is located in an area having special 
flood hazards, but only in accordance with the following requirements:
        ``(1) Borrower fee.--The borrower under such a loan may be 
    charged the fee, but only if the determination--
            ``(A) is made pursuant to the making, increasing, 
        extending, or renewing of the loan that is initiated by the 
        borrower;
            ``(B) is made pursuant to a revision or updating under 
        section 1360(f) of the floodplain areas and flood-risk zones or 
        publication of a notice or compendia under subsection (h) or 
        (i) of section 1360 that affects the area in which the improved 
        real estate or mobile home securing the loan is located or 
        that, in the determination of the Director, may reasonably be 
        considered to require a determination under this subsection; or
            ``(C) results in the purchase of flood insurance coverage 
        pursuant to the requirement under subsection (e)(2).
        ``(2) Purchaser or transferee fee.--The purchaser or transferee 
    of such a loan may be charged the fee in the case of sale or 
    transfer of the loan.''.

SEC. 527. NOTICE REQUIREMENTS.

    Section 1364 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104a) is amended to read as follows:


                          ``notice requirements

    ``Sec. 1364. (a) Notification of Special Flood Hazards.--
        ``(1) Regulated lending institutions.--Each Federal entity for 
    lending regulation (after consultation and coordination with the 
    Financial Institutions Examination Council) shall by regulation 
    require regulated lending institutions, as a condition of making, 
    increasing, extending, or renewing any loan secured by improved 
    real estate or a mobile home that the regulated lending institution 
    determines is located or is to be located in an area that has been 
    identified by the Director under this title or the Flood Disaster 
    Protection Act of 1973 as an area having special flood hazards, to 
    notify the purchaser or lessee (or obtain satisfactory assurances 
    that the seller or lessor has notified the purchaser or lessee) and 
    the servicer of the loan of such special flood hazards, in writing, 
    a reasonable period in advance of the signing of the purchase 
    agreement, lease, or other documents involved in the transaction. 
    The regulations shall also require that the regulated lending 
    institution retain a record of the receipt of the notices by the 
    purchaser or lessee and the servicer.
        ``(2) Federal agency lenders.--Each Federal agency lender shall 
    by regulation require notification in the manner provided under 
    paragraph (1) with respect to any loan that is made by the Federal 
    agency lender and secured by improved real estate or a mobile home 
    located or to be located in an area that has been identified by the 
    Director under this title or the Flood Disaster Protection Act of 
    1973 as an area having special flood hazards. Any regulations 
    issued under this paragraph shall be consistent with and 
    substantially identical to the regulations issued under paragraph 
    (1).
        ``(3) Contents of notice.--Written notification required under 
    this subsection shall include--
            ``(A) a warning, in a form to be established by the 
        Director, stating that the building on the improved real estate 
        securing the loan is located, or the mobile home securing the 
        loan is or is to be located, in an area having special flood 
        hazards;
            ``(B) a description of the flood insurance purchase 
        requirements under section 102(b) of the Flood Disaster 
        Protection Act of 1973;
            ``(C) a statement that flood insurance coverage may be 
        purchased under the national flood insurance program and is 
        also available from private insurers; and
            ``(D) any other information that the Director considers 
        necessary to carry out the purposes of the national flood 
        insurance program.
    ``(b) Notification of Change of Servicer.--
        ``(1) Lending institutions.--Each Federal entity for lending 
    regulation (after consultation and coordination with the Financial 
    Institutions Examination Council) shall by regulation require 
    regulated lending institutions, in connection with the making, 
    increasing, extending, renewing, selling, or transferring any loan 
    described in subsection (a)(1), to notify the Director (or the 
    designee of the Director) in writing during the term of the loan of 
    the servicer of the loan. Such institutions shall also notify the 
    Director (or such designee) of any change in the servicer of the 
    loan, not later than 60 days after the effective date of such 
    change. The regulations under this subsection shall provide that 
    upon any change in the servicing of a loan, the duty to provide 
    notification under this subsection shall transfer to the transferee 
    servicer of the loan.
        ``(2) Federal agency lenders.--Each Federal agency lender shall 
    by regulation provide for notification in the manner provided under 
    paragraph (1) with respect to any loan described in subsection 
    (a)(1) that is made by the Federal agency lender. Any regulations 
    issued under this paragraph shall be consistent with and 
    substantially identical to the regulations issued under paragraph 
    (1) of this subsection.
    ``(c) Notification of Expiration of Insurance.--The Director (or 
the designee of the Director) shall, not less than 45 days before the 
expiration of any contract for flood insurance under this title, issue 
notice of such expiration by first class mail to the owner of the 
property covered by the contract, the servicer of any loan secured by 
the property covered by the contract, and (if known to the Director) 
the owner of the loan.''.

SEC. 528. STANDARD HAZARD DETERMINATION FORMS.

    Chapter III of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101 et seq.) is amended by adding at the end the following new 
section:


                  ``standard hazard determination forms

    ``Sec. 1365. (a) Development.--The Director, in consultation with 
representatives of the mortgage and lending industry, the Federal 
entities for lending regulation, the Federal agency lenders, and any 
other appropriate individuals, shall develop a standard form for 
determining, in the case of a loan secured by improved real estate or a 
mobile home, whether the building or mobile home is located in an area 
identified by the Director as an area having special flood hazards and 
in which flood insurance under this title is available. The form shall 
be established by regulations issued not later than 270 days after the 
date of enactment of the Riegle Community Development and Regulatory 
Improvement Act of 1994.
    ``(b) Design and Contents.--
        ``(1) Purpose.--The form under subsection (a) shall be designed 
    to facilitate compliance with the flood insurance purchase 
    requirements of this title.
        ``(2) Contents.--The form shall require identification of the 
    type of flood-risk zone in which the building or mobile home is 
    located, the complete map and panel numbers for the improved real 
    estate or property on which the mobile home is located, the 
    community identification number and community participation status 
    (for purposes of the national flood insurance program) of the 
    community in which the improved real estate or such property is 
    located, and the date of the map used for the determination, with 
    respect to flood hazard information on file with the Director. If 
    the building or mobile home is not located in an area having 
    special flood hazards the form shall require a statement to such 
    effect and shall indicate the complete map and panel numbers of the 
    improved real estate or property on which the mobile home is 
    located. If the complete map and panel numbers are not available 
    because the building or mobile home is not located in a community 
    that is participating in the national flood insurance program or 
    because no map exists for the relevant area, the form shall require 
    a statement to such effect. The form shall provide for inclusion or 
    attachment of any relevant documents indicating revisions or 
    amendments to maps.
    ``(c) Required Use.--The Federal entities for lending regulation 
shall by regulation require the use of the form under this section by 
regulated lending institutions. Each Federal agency lender shall by 
regulation provide for the use of the form with respect to any loan 
made by such Federal agency lender. The Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation and the 
Government National Mortgage Association shall require the use of the 
form with respect to any loan purchased by such entities. A lender or 
other person may comply with the requirement under this subsection by 
using the form in a printed, computerized, or electronic manner.
    ``(d) Guarantees Regarding Information.--In providing information 
regarding special flood hazards on the form developed under this 
section, any lender (or other person required to use the form) who 
makes, increases, extends, or renews a loan secured by improved real 
estate or a mobile home may provide for the acquisition or 
determination of such information to be made by a person other than 
such lender (or other person), only to the extent such person 
guarantees the accuracy of the information.
    ``(e) Reliance on Previous Determination.--Any person increasing, 
extending, renewing, or purchasing a loan secured by improved real 
estate or a mobile home may rely on a previous determination of whether 
the building or mobile home is located in an area having special flood 
hazards (and shall not be liable for any error in such previous 
determination), if the previous determination was made not more than 7 
years before the date of the transaction and the basis for the previous 
determination has been set forth on a form under this section, unless--
        ``(1) map revisions or updates pursuant to section 1360(f) 
    after such previous determination have resulted in the building or 
    mobile home being located in an area having special flood hazards; 
    or
        ``(2) the person contacts the Director to determine when the 
    most recent map revisions or updates affecting such property 
    occurred and such revisions and updates have occurred after such 
    previous determination.
    ``(f) Effective Date.--The regulations under this section requiring 
use of the form established pursuant to this section shall be issued 
together with the regulations required under subsection (a) and shall 
take effect upon the expiration of the 180-day period beginning on such 
issuance.''.

SEC. 529. EXAMINATIONS REGARDING COMPLIANCE.

    (a) Amendment to Federal Deposit Insurance Act.--Section 10 of the 
Federal Deposit Insurance Act (12 U.S.C. 1820) is amended by adding at 
the end the following new subsection:
    ``(i) Flood Insurance Compliance by Insured Depository 
Institutions.--
        ``(1) Examinations.--The appropriate Federal banking agency 
    shall, during each scheduled on-site examination required by this 
    section, determine whether the insured depository institution is 
    complying with the requirements of the national flood insurance 
    program.
        ``(2) Report.--
            ``(A) Requirement.--Not later than 1 year after the date of 
        enactment of the Riegle Community Development and Regulatory 
        Improvement Act of 1994 and biennially thereafter for the next 
        4 years, each appropriate Federal banking agency shall submit a 
        report to the Congress on compliance by insured depository 
        institutions with the requirements of the national flood 
        insurance program.
            ``(B) Contents.--Each report submitted under this paragraph 
        shall include a description of the methods used to determine 
        compliance, the number of institutions examined during the 
        reporting year, a listing and total number of institutions 
        found not to be in compliance, actions taken to correct 
        incidents of noncompliance, and an analysis of compliance, 
        including a discussion of any trends, patterns, and problems, 
        and recommendations regarding reasonable actions to improve the 
        efficiency of the examinations processes.''.
    (b) Amendment to Federal Credit Union Act.--Section 204 of the 
Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the 
end the following new subsection:
    ``(e) Flood Insurance Compliance by Insured Credit Unions.--
        ``(1) Examination.--The Board shall, during each examination 
    conducted under this section, determine whether the insured credit 
    union is complying with the requirements of the national flood 
    insurance program.
        ``(2) Report.--
            ``(A) Requirement.--Not later than 1 year after the date of 
        enactment of the Riegle Community Development and Regulatory 
        Improvement Act of 1994 and biennially thereafter for the next 
        4 years, the Board shall submit a report to the Congress on 
        compliance by insured credit unions with the requirements of 
        the national flood insurance program.
            ``(B) Contents.--The report shall include a description of 
        the methods used to determine compliance, the number of insured 
        credit unions examined during the reporting year, a listing and 
        total number of insured credit unions found not to be in 
        compliance, actions taken to correct incidents of 
        noncompliance, and an analysis of compliance, including a 
        discussion of any trends, patterns, and problems, and 
        recommendations regarding reasonable actions to improve the 
        efficiency of the examinations processes.''.
    (c) Amendment to Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992.--Section 1319B(a) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4521(a)) is amended--
        (1) in paragraph (2), by striking ``and'' at the end;
        (2) in paragraph (3), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(4) a description of--
            ``(A) whether the procedures established by each enterprise 
        pursuant to section 102(b)(3) of the Flood Disaster Protection 
        Act of 1973 are adequate and being complied with, and
            ``(B) the results and conclusions of any examination, as 
        determined necessary by the Director, to determine the 
        compliance of the enterprises with the requirements of section 
        102(b)(3) of such Act, which shall include a description of the 
        methods used to determine compliance and the types and sources 
        of deficiencies (if any), and identify any corrective measures 
        that have been taken to remedy any such deficiencies,
    except that the information described in this paragraph shall be 
    included only in each of the first, third, and fifth annual reports 
    under this subsection required to be submitted after the expiration 
    of the 1-year period beginning on the date of enactment of the 
    Riegle Community Development and Regulatory Improvement Act of 
    1994.''.

SEC. 530. FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

    Section 1006 of the Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3305) is amended by adding at the end 
the following new subsection:
    ``(g) Flood Insurance.--The Council shall consult with and assist 
the Federal entities for lending regulation, as such term is defined in 
section 1370(a) of the National Flood Insurance Act of 1968, in 
developing and coordinating uniform standards and requirements for use 
by regulated lending institutions under the national flood insurance 
program.''.

SEC. 531. CLERICAL AMENDMENT.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a) is amended by striking the section heading and inserting the 
following new section heading:


    ``flood insurance purchase and compliance requirements and escrow 
                              accounts''.

Subtitle C--Ratings and Incentives for Community Floodplain Management 
                                Programs

    SEC. 541. COMMUNITY RATING SYSTEM AND INCENTIVES FOR COMMUNITY 
      FLOODPLAIN MANAGEMENT.
    Section 1315 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4022) is amended--
        (1) by striking ``After December'' and inserting theP 
    following:
    ``(a) Requirement for Participation in Flood Insurance Program.--
        ``(1) In general.--After December''; and
        (2) by adding at the end the following new subsection:
    ``(b) Community Rating System and Incentives for Community 
Floodplain Management.--
        ``(1) Authority and goals.--The Director shall carry out a 
    community rating system program, under which communities 
    participate voluntarily--
            ``(A) to provide incentives for measures that reduce the 
        risk of flood or erosion damage that exceed the criteria set 
        forth in section 1361 and evaluate such measures;
            ``(B) to encourage adoption of more effective measures that 
        protect natural and beneficial floodplain functions;
            ``(C) to encourage floodplain and erosion management; and
            ``(D) to promote the reduction of Federal flood insurance 
        losses.
        ``(2) Incentives.--The program shall provide incentives in the 
    form of credits on premium rates for flood insurance coverage in 
    communities that the Director determines have adopted and enforced 
    measures that reduce the risk of flood and erosion damage that 
    exceed the criteria set forth in section 1361. In providing 
    incentives under this paragraph, the Director may provide for 
    credits to flood insurance premium rates in communities that the 
    Director determines have implemented measures that protect natural 
    and beneficial floodplain Pfunctions.
        ``(3) Credits.--The credits on premium rates for flood 
    insurance coverage shall be based on the estimated reduction in 
    flood and erosion damage risks resulting from the measures adopted 
    by the community under this program. If a community has received 
    mitigation assistance under section 1366, the credits shall be 
    phased in a manner, determined by the Director, to recover the 
    amount of such assistance provided for the community.
        ``(4) Reports.--Not later than 2 years after the date of 
    enactment of the Riegle Community Development and Regulatory 
    Improvement Act of 1994 and not less than every 2 years thereafter, 
    the Director shall submit a report to the Congress regarding the 
    program under this subsection. Each report shall include an 
    analysis of the cost-effectiveness of the program, any other 
    accomplishments or shortcomings of the program, and any 
    recommendations of the Director for legislation regarding the 
    program.''.

SEC. 542. FUNDING.

    Section 1310(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4017(a)) is amended--
        (1) in paragraph (4), by striking ``and'' at the end;
        (2) in paragraph (5), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding after paragraph (5) the following new Pparagraph:
        ``(6) for carrying out the program under section 1315(b);''.

                 Subtitle D--Mitigation of Flood Risks

    SEC. 551. REPEAL OF FLOODED PROPERTY PURCHASE AND LOANP PROGRAM.
    (a) Repeal.--Section 1362 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4103) is hereby repealed.
    (b) Transition Phase.--Notwithstanding subsection (a), during the 
1-year period beginning on the date of enactment of this Act, the 
Director of the Federal Emergency Management Agency may enter into loan 
and purchase commitments as provided under section 1362 of the National 
Flood Insurance Act of 1968 (as in effect immediately before the 
enactment of this Act).
    (c) Savings Provision.--Notwithstanding subsection (a), the 
Director shall take any action necessary to comply with any purchase or 
loan commitment entered into before the expiration of the period 
referred to in subsection (b) pursuant to authority under section 1362 
of the National Flood Insurance Act of 1968 or subsection (b).
    SEC. 552. TERMINATION OF EROSION-THREATENED STRUCTURESP PROGRAM.
    (a) In General.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended by striking subsection (c).
    (b) Transition Phase.--Notwithstanding subsection (a), during the 
1-year period beginning on the date of enactment of this Act, the 
Director of the Federal Emergency Management Agency may pay amounts 
under flood insurance contracts for demolition or relocation of 
structures as provided in section 1306(c) of the National Flood 
Insurance Act of 1968 (as in effect immediately before the enactment of 
this Act).
    (c) Savings Provision.--Notwithstanding subsection (a), the 
Director shall take any action necessary to make payments under flood 
insurance contracts pursuant to any commitments made before the 
expiration of the period referred to in subsection (b) pursuant to the 
authority under section 1306(c) of the National Flood Insurance Act of 
1968 or subsection (b).
    (d) Repeal of Findings Provision.--Section 1302 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4001) is amended by striking 
subsection (g).

SEC. 553. MITIGATION ASSISTANCE PROGRAM.

    (a) In General.--Chapter III of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101 et seq.), as amended by the preceding provisions 
of this title, is further amended by adding at the end the following 
new section:


                         ``mitigation assistance

    ``Sec. 1366. (a) Authority.--The Director shall carry out a program 
to provide financial assistance to States and communities, using 
amounts made available from the National Flood Mitigation Fund under 
section 1367, for planning and carrying out activities designed to 
reduce the risk of flood damage to structures covered under contracts 
for flood insurance under this title. Such financial assistance shall 
be made available to States and communities in the form of grants under 
subsection (b) for planning assistance and in the form of grants under 
this section for carrying out mitigation activities.
    ``(b) Planning Assistance Grants.--
        ``(1) In general.--The Director may make grants under this 
    subsection to States and communities to assist in developing 
    mitigation plans under subsection (c).
        ``(2) Funding.--Of any amounts made available from the National 
    Flood Mitigation Fund for use under this section in any fiscal 
    year, the Director may use not more than $1,500,000 to provide 
    planning assistance grants under this subsection.
        ``(3) Limitations.--
            ``(A) Timing.--A grant under this subsection may be awarded 
        to a State or community not more than once every 5 years and 
        each grant may cover a period of 1 to 3 years.
            ``(B) Single grantee amount.--A grant for planning 
        assistance may not exceed--
                ``(i) $150,000, to any State; or
                ``(ii) $50,000, to any community.
            ``(C) Cumulative state grant amount.--The sum of the 
        amounts of grants made under this subsection in any fiscal year 
        to any one State and all communities located in such State may 
        not exceed $300,000.
    ``(c) Eligibility for Mitigation Assistance.--To be eligible to 
receive financial assistance under this section for mitigation 
activities, a State or community shall develop, and have approved by 
the Director, a flood risk mitigation plan (in this section referred to 
as a `mitigation plan'), that describes the mitigation activities to be 
carried out with assistance provided under this section, is consistent 
with the criteria established by the Director under section 1361, and 
provides protection against flood losses to structures for which 
contracts for flood insurance are available under this title. The 
mitigation plan shall be consistent with a comprehensive strategy for 
mitigation activities for the area affected by the mitigation plan, 
that has been adopted by the State or community following a public 
hearing.
    ``(d) Notification of Approval and Grant Award.--
        ``(1) In general.--The Director shall notify a State or 
    community submitting a mitigation plan of the approval or 
    disapproval of the plan not later than 120 days after submission of 
    the plan.
        ``(2) Notification of disapproval.--If the Director does not 
    approve a mitigation plan submitted under this subsection, the 
    Director shall notify, in writing, the State or community 
    submitting the plan of the reasons for such disapproval.
    ``(e) Eligible Mitigation Activities.--
        ``(1) Use of amounts.--Amounts provided under this section 
    (other than under subsection (b)) may be used only for mitigation 
    activities specified in a mitigation plan approved by the Director 
    under subsection (d). The Director shall provide assistance under 
    this section to the extent amounts are available in the National 
    Flood Mitigation Fund pursuant toP appropriation Acts, subject only 
    to the absence of approvable mitigation plans.
        ``(2) Determination of eligible plans.--The Director may 
    approve only mitigation plans that specify mitigation activities 
    that the Director determines are technically feasible and cost-
    effective and only such plans that propose activities that are 
    cost-beneficial to the National Flood Mitigation Fund.
        ``(3) Standard for approval.--The Director shall approve 
    mitigation plans meeting the requirements for approval under 
    paragraph (1) that will be most cost-beneficial to the National 
    Flood Mitigation Fund.
        ``(4) Priority.--The Director shall make every effort to 
    provide mitigation assistance under this section for mitigation 
    plans proposing activities for repetitive loss structures and 
    structures that have incurred substantial damage.
        ``(5) Eligible activities.--The Director shall determine 
    whether mitigation activities described in a mitigation plan 
    submitted under subsection (d) comply with the requirements under 
    paragraph (1). Such activities may include--
            ``(A) demolition or relocation of any structure located on 
        land that is along the shore of a lake or other body of water 
        and is certified by an appropriate State or local land use 
        authority to be subject to imminent collapse or subsidence as a 
        result of erosion or flooding;
            ``(B) elevation, relocation, demolition, or floodproofing 
        of structures (including public structures) located in areas 
        having special flood hazards or other areas of flood risk;
            ``(C) acquisition by States and communities of properties 
        (including public properties) located in areas having special 
        flood hazards or other areas of flood risk and properties 
        substantially damaged by flood, for public use, as the Director 
        determines is consistent with sound land management and use in 
        such area;
            ``(D) minor physical mitigation efforts that do not 
        duplicate the flood prevention activities of other Federal 
        agencies and that lessen the frequency or severity of flooding 
        and decrease predicted flood damages, which shall not include 
        major flood control projects such as dikes, levees, seawalls, 
        groins, and jetties unless the Director specifically determines 
        in approving a mitigation plan that such activities are the 
        most cost-effective mitigation activities for the National 
        Flood Mitigation Fund;
            ``(E) beach nourishment activities;
            ``(F) the provision of technical assistance by States to 
        communities and individuals to conduct eligible mitigation 
        activities;
            ``(G) other activities that the Director considers 
        appropriate and specifies in regulation; and
            ``(H) other mitigation activities not described in 
        subparagraphs (A) through (F) or the regulations issued under 
        subparagraph (G), that are described in the mitigation plan of 
        a State or community.
    ``(f) Limitations on Amount of Assistance.--
        ``(1) Amount.--The sum of the amounts of mitigation assistance 
    provided under this section during any 5-year period may not 
    exceed--
            ``(A) $10,000,000, to any State; or
            ``(B) $3,300,000, to any community.
        ``(2) Geographic.--The sum of the amounts of mitigation 
    assistance provided under this section during any 5-year period to 
    any one State and all communities located in such State may not 
    exceed $20,000,000.
        ``(3) Waiver.--The Director may waive the dollar amount 
    limitations under paragraphs (1) and (2) for any State or community 
    for any 5-year period during which a major disaster or emergency 
    declared by the President (pursuant to the Robert T. Stafford 
    Disaster Relief and Emergency Assistance Act) as a result of flood 
    conditions is in effect with respect to areas in the State or 
    community.
    ``(g) Matching Requirement.--
        ``(1) In general.--The Director may not provide mitigation 
    assistance under this section to a State or community in an amount 
    exceeding 3 times the amount that the State or community certifies, 
    as the Director shall require, that the State or community will 
    contribute from non-Federal funds to develop a mitigation plan 
    under subsection (c) and to carry out mitigation activities under 
    the approved mitigation plan. In no case shall any in-kind 
    contribution by any State or community exceed one-half of the 
    amount of non-Federal funds contributed by the State or community.
        ``(2) Non-federal funds.--For purposes of this subsection, the 
    term `non-Federal funds' includes State or local agency funds, in-
    kind contributions, any salary paid to staff to carry out the 
    mitigation activities of the recipient, the value of the time and 
    services contributed by volunteers to carry out such activities (at 
    a rate determined by the Director), and the value of any donated 
    material or building and the value of any lease on a building.
    ``(h) Oversight of Mitigation Plans.--The Director shall conduct 
oversight of recipients of mitigation assistance under this section to 
ensure that the assistance is used in compliance with the approved 
mitigation plans of the recipients and that matching funds certified 
under subsection (g) are used in accordance with such certification.
    ``(i) Recapture.--
        ``(1) Noncompliance with plan.--If the Director determines that 
    a State or community that has received mitigation assistance under 
    this section has not carried out the mitigation activities as set 
    forth in the mitigation plan, the Director shall recapture any 
    unexpended amounts and deposit the amounts in the National Flood 
    Mitigation Fund under section 1367.
        ``(2) Failure to provide matching funds.--If the Director 
    determines that a State or community that has received mitigation 
    assistance under this section has not provided matching funds in 
    the amount certified under subsection (g), the Director shall 
    recapture any unexpended amounts of mitigation assistance exceeding 
    3 times the amount of such matching funds actually provided and 
    deposit the amounts in the National Flood Mitigation Fund under 
    section 1367.
    ``(j) Reports.--Not later than 1 year after the date of enactment 
of the Riegle Community Development and Regulatory Improvement Act of 
1994 and biennially thereafter, the Director shall submit a report to 
the Congress describing the status of mitigation activities carried out 
with assistance provided under this section.
    ``(k) Definition of Community.--For purposes of this section, the 
term `community' means--
        ``(1) a political subdivision that (A) has zoning and building 
    code jurisdiction over a particular area having special flood 
    hazards, and (B) is participating in the national flood insurance 
    program; or
        ``(2) a political subdivision of a State, or other authority, 
    that is designated to develop and administer a mitigation plan by 
    political subdivisions, all of which meet the requirements of 
    paragraph (1).''.
    (b) Regulations.--Not later than 6 months after the date of 
enactment of this Act, the Director of the Federal Emergency Management 
Agency shall issue regulations to carry out section 1366 of the 
National Flood Insurance Act of 1968, as added by subsection (a).

SEC. 554. ESTABLISHMENT OF NATIONAL FLOOD MITIGATION FUND.

    (a) In General.--Chapter III of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101 et seq.), as amended by the preceding provisions 
of this title, is further amended by adding at the end the following 
new section:


                     ``national flood mitigation fund

    ``Sec. 1367. (a) Establishment and Availability.--The Director 
shall establish in the Treasury of the United States a fund to be known 
as the National Flood Mitigation Fund, which shall be credited with 
amounts described in subsection (b) and shall be available, to the 
extent provided in appropriation Acts, for providing assistance under 
section 1366.
    ``(b) Credits.--The National Flood Mitigation Fund shall be 
credited with--
        ``(1) amounts from the National Flood Insurance Fund, in 
    amounts not exceeding--
            ``(A) $10,000,000 in the fiscal year ending September 30, 
        1994;
            ``(B) $15,000,000 in the fiscal year ending Septem- Pber 
        30, 1995;
            ``(C) $20,000,000 in the fiscal year ending September 30, 
        1996; and
            ``(D) $20,000,000 in each fiscal year thereafter;
        ``(2) any penalties collected under section 102(f) of the Flood 
    Disaster Protection Act of 1973; and
        ``(3) any amounts recaptured under section 1366(i).
    ``(c) Investment.--If the Director determines that the amounts in 
the National Flood Mitigation Fund are in excess of amounts needed 
under subsection (a), the Director may invest any excess amounts the 
Director determines advisable in interest-bearing obligations issued or 
guaranteed by the United States.
    ``(d) Report.--The Director shall submit a report to the Congress 
not later than the expiration of the 1-year period beginning on the 
date of enactment of this Act and not less than once during each 
successive 2-year period thereafter. The report shall describe the 
status of the Fund and any activities carried out with amounts from the 
Fund.''.
    (b) National Flood Insurance Fund as Separate Account.--Section 
1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) 
is amended--
        (1) in the matter preceding paragraph (1)--
            (A) by striking ``is authorized to'' and inserting 
        ``shall''; and
            (B) by inserting after ``which shall be'' the following: 
        ``an account separate from any other accounts or funds 
        available to the Director and shall be''; and
        (2) by adding after paragraph (6) (as added by the preceding 
    provisions of this title) the following new paragraph:
        ``(7) for transfers to the National Flood Mitigation Fund, but 
    only to the extent provided in section 1367(b)(1); and''.
    SEC. 555. ADDITIONAL COVERAGE FOR COMPLIANCE WITH LAND USE AND 
      CONTROL MEASURES.
    (a) In General.--Section 1304 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4011) is amended--
        (1) by redesignating subsection (b) as subsection (c); and
        (2) by inserting after subsection (a) the following new 
    subsection:
    ``(b) Additional Coverage for Compliance With Land Use and Control 
Measures.--The national flood insurance program established pursuant to 
subsection (a) shall enable the purchase of insurance to cover the cost 
of compliance with land use and control measures established under 
section 1361 for--
        ``(1) properties that are repetitive loss structures;
        ``(2) properties that have flood damage in which the cost of 
    repairs equals or exceeds 50 percent of the value of the structure 
    at the time of the flood event; and
        ``(3) properties that have sustained flood damage on multiple 
    occasions, if the Director determines that it is cost-effective and 
    in the best interests of the National Flood Insurance Fund to 
    require compliance with the land use and control measures.
The Director shall impose a surcharge on each insured of not more than 
$75 per policy to provide cost of compliance coverage in accordance 
with the provisions of this subsection.''.
    (b) Applicability.--The provisions of subsection (a) shall apply 
only to properties that sustain flood-related damage after the date of 
enactment of this Act.

                        Subtitle E--Task Forces

SEC. 561. FLOOD INSURANCE INTERAGENCY TASK FORCE.

    (a) Establishment.--There is hereby established an interagency task 
force to be known as the Flood Insurance Task Force (in this section 
referred to as the ``Task Force'').
    (b) Membership.--
        (1) In general.--The Task Force shall be composed of 10 
    members, who shall be the designees of--
            (A) the Federal Insurance Administrator;
            (B) the Federal Housing Commissioner;
            (C) the Secretary of Veterans Affairs;
            (D) the Administrator of the Farmers Home PAdministration;
            (E) the Administrator of the Small Business 
        PAdministration;
            (F) the Chairman of the Board of Directors of the Farm 
        Credit Administration;
            (G) a designee of the Financial Institutions Examination 
        Council;
            (H) the Director of the Office of Federal Housing 
        Enterprise Oversight;
            (I) the chairman of the Board of Directors of theP Federal 
        Home Loan Mortgage Corporation; and
            (J) the chairman of the Board of Directors of theP Federal 
        National Mortgage Association.
        (2) Qualifications.--Members of the Task Force shall be 
    designated for membership on the Task Force by reason of 
    demonstrated knowledge and competence regarding the national flood 
    insurance program.
    (c) Duties.--The Task Force shall carry out the following duties:
        (1) Recommendations of standardized enforcement procedures.--
    Make recommendations to the head of each Federal agency and 
    enterprise referred to under subsection (b)(1) regarding 
    establishment or adoption of standardized enforcement procedures 
    among such agencies and corporations responsible for enforcing 
    compliance with the requirements under the national flood insurance 
    program to ensure fullest possible compliance with such 
    requirements.
        (2) Study of compliance assistance.--Conduct a study of the 
    extent to which Federal agencies and the secondary mortgage market 
    can provide assistance in ensuring compliance with the requirements 
    under the national flood insurance program and submit to the 
    Congress a report describing the study and any conclusions.
        (3) Study of compliance model.--Conduct a study of the extent 
    to which existing programs of Federal agencies and corporations for 
    compliance with the requirements under the national flood insurance 
    program can serve as a model for other Federal agencies responsible 
    for enforcing compliance, and submit to the Congress a report 
    describing the study and any conclusions.
        (4) Recommendations for enforcement and compliance 
    procedures.--Develop recommendations regarding enforcement and 
    compliance procedures, based on the studies and findings of the 
    Task Force, and publish such recommendations.
        (5) Study of determination fees.--Conduct a study of--
            (A) the reasonableness of fees charged pursuant to 102(h) 
        of the Flood Disaster Protection Act of 1973 for costs of 
        determining whether the property securing a loan is located in 
        an area having special flood hazards; and
            (B) whether the fees charged pursuant to such section by 
        lenders and servicers are greater than the amounts paid by such 
        lenders and servicers to persons actually conducting such 
        determinations and the extent to which the fees exceed such 
        amounts.
    (d) Noncompensation.--Members of the Task Force shall receive no 
additional pay by reason of their service on the Task Force.
    (e) Chairperson.--The members of the Task Force shall elect one 
member as chairperson of the Task Force.
    (f) Meetings and Action.--The Task Force shall meet at the call of 
the chairman or a majority of the members of the Task Force and may 
take action by a vote of the majority of the members. The Federal 
Insurance Administrator shall coordinate and call the initial meeting 
of the Task Force.
    (g) Officers.--The chairperson of the Task Force may appoint any 
officers to carry out the duties of the Task Force under subsection 
(c).
    (h) Staff of Federal Agencies.--Upon request of the chairperson of 
the Task Force, the head of any of the Federal agencies and entities 
referred to under subsection (b)(1) may detail, on a nonreimbursable 
basis, any of the personnel of such agency to the Task Force to assist 
the Task Force in carrying out its duties under this section.
    (i) Powers.--In carrying out this section, the Task Force may hold 
hearings, sit and act at times and places, take testimony, receive 
evidence and assistance, provide information, and conduct research as 
the Task Force considers appropriate.
    (j) Termination.--The Task Force shall terminate upon the 
expiration of the 24-month period beginning upon the designation of the 
last member to be designated under subsection (b)(1).
    SEC. 562. TASK FORCE ON NATURAL AND BENEFICIAL FUNCTIONS OF THE 
      FLOODPLAIN.
    (a) Establishment.--There is hereby established an interagency task 
force to be known as the Task Force on Natural and Beneficial Functions 
of the Floodplain (in this section referred to as the ``Task Force'').
    (b) Membership.--The Task Force shall be composed of 5 members, who 
shall be the designees of--
        (1) the Under Secretary of Commerce for Oceans and Atmosphere;
        (2) the Director of the United States Fish and Wildlife 
    Service;
        (3) the Administrator of the Environmental Protection Agency;
        (4) the Secretary of the Army, acting through the Chief of 
    Engineers; and
        (5) the Director of the Federal Emergency Management Agency.
    (c) Duties.--The Task Force shall--
        (1) conduct a study to--
            (A) identify the natural and beneficial functions of the 
        floodplain that reduce flood-related losses; and
            (B) develop recommendations on how to reduce flood losses 
        by protecting the natural and beneficial functions of the 
        floodplain; and
        (2) make the information and recommendations under 
    subparagraphs (A) and (B) publicly available.
    (d) Noncompensation.--Members of the Task Force shall receive no 
additional pay by reason of their service on the Task Force.
    (e) Chairperson.--The members of the Task Force shall elect one 
member as chairperson of the Task Force.
    (f) Meetings and Action.--The Task Force shall meet at the call of 
the chairperson or a majority of the members of the Task Force and may 
take action by a vote of the majority of the members. The Federal 
Insurance Administrator shall coordinate and call the initial meeting 
of the Task Force.
    (g) Officers.--The chairperson of the Task Force may appoint any 
officers to carry out the duties of the Task Force under subsection 
(c).
    (h) Staff of Federal Agencies.--Upon request of the chairperson of 
the Task Force, the head of any of the Federal agencies and entities 
referred to under subsection (b) may detail, on a nonreimbursable 
basis, any of the personnel of such agency to the Task Force to assist 
the Task Force in carrying out its duties under this section.
    (i) Powers.--In carrying out this section, the Task Force may hold 
hearings, sit and act at times and places, take testimony, receive 
evidence and assistance, provide information, and conduct research as 
the Task Force considers appropriate.
    (j) Termination.--The Task Force shall terminate upon the 
expiration of the 24-month period beginning upon the designation of the 
last member to be designated under subsection (b).

                  Subtitle F--Miscellaneous Provisions

SEC. 571. EXTENSION OF FLOOD INSURANCE PROGRAM.

    (a) In General.--Section 1319 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4026) is amended by striking ``Septem- ber 30, 
1995'' and inserting ``September 30, 1996''.
    (b) Emergency Implementation.--Section 1336(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4056(a)) is Pamended by striking 
``September 30, 1995'' and inserting ``September 30, 1996''.

SEC. 572. LIMITATION ON PREMIUM INCREASES.

    (a) Property-Specific Limitation.--Section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) isP amended--
        (1) in subsection (c), by striking ``Notwithstanding any other 
    provision of this title'' and inserting ``Subject only to the 
    limitation under subsection (e)''; and
        (2) by inserting after subsection (d) the following new 
    subsection:
    ``(e) Annual Limitation on Premium Increases.--Notwithstanding any 
other provision of this title, the chargeable risk premium rates for 
flood insurance under this title for any properties within any single 
risk classification may not be increased by an amount that would result 
in the average of such rate increases for properties within the risk 
classification during any 12-month period exceeding 10 percent of the 
average of the risk premium rates for properties within the risk 
classification upon the commencement of such 12-month period.''.
    (b) Repeal of Program-Wide Limitation.--Subsection (d) of section 
541 of the Housing and Community Development Act of 1987 (42 U.S.C. 
4015 note) is hereby repealed.

SEC. 573. MAXIMUM FLOOD INSURANCE COVERAGE AMOUNTS.

    (a) In General.--Section 1306(b) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4013(b)) is amended as follows:
        (1) Residential property.--In paragraph (2), by striking ``an 
    amount of $150,000 under the provisions of this clause'' and 
    inserting the following: ``a total amount (including such limits 
    specified in paragraph (1)(A)(i)) of $250,000''.
        (2) Residential property contents.--In paragraph (3), by 
    striking ``an amount of $50,000 under the provisions of this 
    clause'' and inserting the following: ``a total amount (including 
    such limits specified in paragraph (1)(A)(ii)) of $100,000''.
        (3) Nonresidential property and contents.--By striking 
    paragraph (4) and inserting the following new paragraph:
        ``(4) in the case of any nonresidential property, including 
    churches, for which the risk premium rate is determined in 
    accordance with the provisions of section 1307(a)(1), additional 
    flood insurance in excess of the limits specified in subparagraphs 
    (B) and (C) of paragraph (1) shall be made available to every 
    insured upon renewal and every applicant for insurance, in respect 
    to any single structure, up to a total amount (including such limit 
    specified in subparagraph (B) or (C) of paragraph (1), as 
    applicable) of $500,000 for each structure and $500,000 for any 
    contents related to each structure; and''.
    (b) Removal of Ceiling on Coverage Required.--Section 1306(b) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is 
amended--
        (1) in paragraph (5), by striking ``; and'' at the end and 
    inserting a period; and
        (2) by striking paragraph (6).
    SEC. 574. FLOOD INSURANCE PROGRAM ARRANGEMENTS WITH PRIVATE 
      INSURANCE ENTITIES.
    Section 1345(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4081(b)) is amended by striking the period at the end and 
inserting the following: ``and without regard to the provisions of the 
Federal Advisory Committee Act (5 U.S.C. App.).''.

SEC. 575. UPDATING OF FLOOD MAPS.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101) is amended by adding at the end the following new subsections:
    ``(e) Review of Flood Maps.--Once during each 5-year period (the 
1st such period beginning on the date of enactment of the Riegle 
Community Development and Regulatory Improvement Act of 1994) or more 
often as the Director determines necessary, the Director shall assess 
the need to revise and update all floodplain areas and flood risk zones 
identified, delineated, or established under this section, based on an 
analysis of all natural hazards affecting flood risks.
    ``(f) Updating Flood Maps.--The Director shall revise and update 
any floodplain areas and flood-risk zones--
        ``(1) upon the determination of the Director, according to the 
    assessment under subsection (e), that revision and updating are 
    necessary for the areas and zones; or
        ``(2) upon the request from any State or local government 
    stating that specific floodplain areas or flood-risk zones in the 
    State or locality need revision or updating, if sufficient 
    technical data justifying the request is submitted and the unit of 
    government making the request agrees to provide funds in an amount 
    determined by the Director, but which may not exceed 50 percent of 
    the cost of carrying out the requested revision or update.
    ``(g) Availability of Flood Maps.--To promote compliance with the 
requirements of this title, the Director shall make flood insurance 
rate maps and related information available free of charge to the 
Federal entities for lending regulation, Federal agency lenders, State 
agencies directly responsible for coordinating the national flood 
insurance program, and appropriate representatives of communities 
participating in the national flood insurance program, and at a 
reasonable cost to all other persons. Any receipts resulting from this 
subsection shall be deposited in the National Flood Insurance Fund, 
pursuant to section 1310(b)(6).
    ``(h) Notification of Flood Map Changes.--The Director shall cause 
notice to be published in the Federal Register (or shall provide notice 
by another comparable method) of any change to flood insurance map 
panels and any change to flood insurance map panels issued in the form 
of a letter of map amendment or a letter of map revision. Such notice 
shall be published or otherwise provided not later than 30 days after 
the map change or revision becomes effective. Notice by any method 
other than publication in the Federal Register shall include all 
pertinent information, provide for regular and frequent distribution, 
and be at least as accessible to map users as notice in the Federal 
Register. All notices under this subsection shall include information 
on how to obtain copies of the changes or revisions.
    ``(i) Compendia of Flood Map Changes.--Every 6 months, the Director 
shall publish separately in their entirety within a compendium, all 
changes and revisions to flood insurance map panels and all letters of 
map amendment and letters of map revision for which notice was 
published in the Federal Register or otherwise provided during the 
preceding 6 months. The Director shall make such compendia available, 
free of charge, to Federal entities for lending regulation, Federal 
agency lenders, and States and communities participating in the 
national flood insurance program pursuant to section 1310 and at cost 
to all other parties. Any receipts resulting from this subsection shall 
be deposited in the National Flood Insurance Fund, pursuant to section 
1310(b)(6).
    ``(j) Provision of Information.--In the implementation of revisions 
to and updates of flood insurance rate maps, the Director shall share 
information, to the extent appropriate, with the Under Secretary of 
Commerce for Oceans and Atmosphere and representatives from State 
coastal zone management programs.''.

SEC. 576. TECHNICAL MAPPING ADVISORY COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (in this section referred to as 
the ``Council'').
    (b) Membership.--
        (1) In general.--The Council shall consist of the Director of 
    the Federal Emergency Management Agency (in this section referred 
    to as the ``Director''), or the Director's designee, and 10 
    additional members to be appointed by the Director or the designee 
    of the Director, who shall be--
            (A) the Under Secretary of Commerce for Oceans and 
        Atmosphere (or his or her designee);
            (B) a member of recognized surveying and mapping 
        professional associations and organizations;
            (C) a member of recognized professional engineering 
        associations and organizations;
            (D) a member of recognized professional associations or 
        organizations representing flood hazard determination firms;
            (E) a representative of the United States GeologicP Survey;
            (F) a representative of State geologic survey programs;
            (G) a representative of State national flood insurance 
        coordination offices;
            (H) a representative of a regulated lending institution;
            (I) a representative of the Federal Home Loan Mortgage 
        Corporation; and
            (J) a representative of the Federal National Mortgage 
        Association.
        (2) Qualifications.--Members of the Council shall be appointed 
    based on their demonstrated knowledge and competence regarding 
    surveying, cartography, remote sensing, geographic information 
    systems, or the technical aspects of preparing and using flood 
    insurance rate maps.
    (c) Duties.--The Council shall--
        (1) make recommendations to the Director on how to improve in a 
    cost-effective manner the accuracy, general quality, ease of use, 
    and distribution and dissemination of flood insurance rate maps;
        (2) recommend to the Director mapping standards and guidelines 
    for flood insurance rate maps; and
        (3) submit an annual report to the Director that contains--
            (A) a description of the activities of the Council;
            (B) an evaluation of the status and performance of flood 
        insurance rate maps and mapping activities to revise and update 
        flood insurance rate maps, as established pursuant to the 
        amendment made by section 675; and
            (C) a summary of recommendations made by the Council to the 
        Director.
    (d) Chairperson.--The members of the Council shall elect 1 member 
to serve as the chairperson of the Council (in this section referred to 
as the ``Chairperson'').
    (e) Coordination.--To ensure that the Council's recommendations are 
consistent to the maximum extent practicable with national digital 
spatial data collection and management standards, the Chairperson shall 
consult with the Chairperson of the Federal Geographic Data Committee 
(established pursuant to OMB Circular A-16).
    (f) Compensation.--Members of the Council shall receive no 
additional compensation by reason of their service on the Council.
    (g) Meetings and Actions.--
        (1) In general.--The Council shall meet not less than twice 
    each year at the request of the Chairperson or a majority of its 
    members and may take action by a vote of the majority of the 
    members.
        (2) Initial meeting.--The Director, or a person designated by 
    the Director, shall request and coordinate the initial meeting of 
    the Council.
    (h) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    (i) Staff of FEMA.--Upon the request of the Chairperson, the 
Director may detail, on a nonreimbursable basis, personnel of the 
Federal Emergency Management Agency to assist the Council in carrying 
out its duties.
    (j) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research as it considers appropriate.
    (k) Termination.--The Council shall terminate 5 years after the 
date on which all members of the Council have been appointed under 
subsection (b)(1).

SEC. 577. EVALUATION OF EROSION HAZARDS.

    (a) Report Requirement.--The Director of the Federal Emergency 
Management Agency (in this section referred to as the ``Director'') 
shall submit a report under this section to the Congress that--
        (1) lists all communities that are likely to be identified as 
    having erosion hazard areas;
        (2) estimates the amount of flood insurance claims under the 
    national flood insurance program that are attributable to erosion;
        (3) states the amount of flood insurance claims under such 
    program that are attributable to claims under section 1306(c) of 
    the National Flood Insurance Act of 1968;
        (4) assesses the full economic impact of erosion on the 
    National Flood Insurance Fund; and
        (5) determines the costs and benefits of expenditures necessary 
    from the National Flood Insurance Fund to complete mapping of 
    erosion hazard areas.
    (b) Estimate of Flood Claims.--In developing the estimate under 
subsection (a)(2)--
        (1) the Director may map a statistically valid and 
    representative number of communities with erosion hazard areas 
    throughout the United States, including coastal, Great Lakes, and, 
    if technologically feasible, riverine areas; and
        (2) the Director shall take into consideration the efforts of 
    State and local governments to assess, measure, and reduce erosion 
    hazards.
    (c) Economic Impact.--
        (1) In general.--The assessment under subsection (a)(4) shall 
    assess the economic impact of--
            (A) erosion on communities listed pursuant to subsection 
        (a)(1);
            (B) the denial of flood insurance for all structures in 
        communities listed pursuant to subsection (a)(1);
            (C) the denial of flood insurance for structures that are 
        newly constructed in whole in communities listed pursuant to 
        subsection (a)(1);
            (D) the establishment of (i) actuarial rates for existing 
        structures in communities listed pursuant to subsection (a)(1), 
        and (ii) actuarial rates for such structures in connection with 
        the denial of flood insurance as described in subparagraph (C);
            (E) the establishment of actuarial rates for structures 
        newly constructed in whole in erosion hazard areas in 
        communities listed pursuant to subsection (a)(1);
            (F) the denial of flood insurance pursuant to existing 
        requirements for coverage under the national flood insurance 
        program;
            (G) erosion hazard assessment, measurement, and management 
        activities undertaken by State and local governments, including 
        building restrictions, beach nourishment, construction of sea 
        walls and levees, and other activities that reduce the risk of 
        damage due to erosion; and
            (H) the mapping and identifying of communities (or 
        subdivisions thereof) having erosion hazard areas.
        (2) Scope.--In assessing the economic impact of the activities 
    under subparagraphs (A) through (H) of paragraph (1), the 
    assessment under subsection (a)(4) shall address such impact on all 
    significant economic factors, including the impact on--
            (A) the value of residential and commercial properties in 
        communities with erosion hazards;
            (B) community tax revenues due to potential changes in 
        property values or commercial activity;
            (C) employment, including the potential loss or gain of 
        existing and new jobs in the community;
            (D) existing businesses and future economic development;
            (E) the estimated cost of Federal and State disaster 
        assistance to flood victims; and
            (F) the mapping and identifying of communities (or 
        subdivisions thereof) having erosion hazard areas.
        (3) Preparation.--The assessment required under subsection 
    (a)(4) shall be conducted by a private independent entity selected 
    by the Director. The private entity shall consult with a 
    statistically valid and representative number of communities listed 
    pursuant to subsection (a)(1) in conducting theP assessment.
    (d) Costs and Benefits of Mapping.--The determination under 
subsection (a)(5) shall--
        (1) determine the costs and benefits of mapping erosion hazard 
    areas, based upon the Director's estimate of the actual and 
    prospective amount of flood insurance claims attributable to 
    erosion;
        (2) if the Director determines that the savings to the National 
    Flood Insurance Fund will exceed the cost of mapping erosion hazard 
    areas, further assess whether using flood insurance premiums for 
    costs of mapping erosion hazard areas is cost-beneficial compared 
    to alternative uses of such amounts, including--
            (A) funding the mitigation assistance program under section 
        1366 of the National Flood Insurance Act of 1968 (as added by 
        section 553 of this Act);
            (B) funding the program under section 1304(b) of the 
        National Flood Insurance Act of 1968 (as added by section 
        555(a) of this Act) that provides additional coverage under the 
        national flood insurance program for compliance with land use 
        and control measures; and
            (C) reviewing, revising, and updating flood insurance rate 
        maps under subsections (e) and (f) of section 1360 of the 
        National Flood Insurance Act of 1968 (as added by the amendment 
        made by section 575 of this Act);
        (3) if the Director determines under subsection (b)(1) that 
    mapping of riverine areas for erosion hazard areas is 
    technologically feasible, determine the costs and benefits of 
    conducting the mapping of erosion hazards in riverine areas (A) 
    separately from the mapping of other erosion hazard areas, and (B) 
    together with the mapping of other such areas;
        (4) if the Director determines that the savings to the National 
    Flood Insurance Fund will exceed the cost of mapping erosion hazard 
    areas in riverine areas, assess whether using flood insurance 
    premiums for costs of mapping erosion hazard areas in riverine 
    areas is cost-beneficial compared to alternative uses of such 
    amounts, including the uses under subparagraphs (A) through (C) of 
    paragraph (2); and
        (5) determine the costs and benefits of mapping erosion, other 
    than those directly related to the financial condition of the 
    National Flood Insurance Program, and the costs of not mapping 
    erosion.
    (e) Definition.--For purposes of this section, the term ``erosion 
hazard area'' means, based on erosion rate information and other 
historical data available, an area where erosion or avulsion is likely 
to result in damage to or loss of buildings and infrastructure within a 
60-year period.
    (f) Consultation.--In preparing the report under this section, the 
Director shall consult with--
        (1) representatives from State coastal zone management programs 
    approved under section 306 of the Coastal Zone Management Act of 
    1972;
        (2) the Administrator of the National Oceanic and Atmospheric 
    Administration; and
        (3) any other persons, officials, or entities that the Director 
    considers appropriate.
    (g) Submission.-- The Director shall submit the report to the 
Congress as soon as practicable, but not later than 2 years after the 
date of enactment of this Act.
    (h) Availability of National Flood Insurance Fund.--Section 1310(a) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is 
amended--
        (1) in the matter preceding paragraph (1), by inserting 
    ``(except as otherwise provided in this section)'' after ``without 
    fiscal year limitation''; and
        (2) by inserting after paragraph (7) (as added by the preceding 
    provisions of this title) the following new paragraph:
        ``(8) for costs of preparing the report under section 577 of 
    the Riegle Community Development and Regulatory Improvement Act of 
    1994, except that the fund shall be available for the purpose under 
    this paragraph in an amount not to exceed an aggregate of 
    $5,000,000 over the 2-year period beginning on the date of 
    enactment of the Riegle Community Development and Regulatory 
    Improvement Act of 1994.''.
    SEC. 578. STUDY OF ECONOMIC EFFECTS OF CHARGING ACTUARIALLY BASED 
      PREMIUM RATES FOR PRE-FIRM STRUCTURES.
    (a) Study.--The Director of the Federal Emergency Management Agency 
(in this section referred to as the ``Director'') shall conduct a study 
of the economic effects that would result from increasing premium rates 
for flood insurance coverage made available under the national flood 
insurance program for pre-FIRM structures to the full actuarial risk 
based premium rate determined under section 1307(a)(1) of the National 
Flood Insurance Act of 1968 for the area in which the property is 
located. In conducting the study, the Director shall--
        (1) determine each area that would be subject to such increased 
    premium rates; and
        (2) for each such area, determine--
            (A) the amount by which premium rates would be increased;
            (B) the number and types of properties affected and the 
        number and types of properties covered by flood insurance under 
        this title likely to cancel such insurance if the rate 
        increases were made;
            (C) the effects that the increased premium rates would have 
        on land values and property taxes; and
            (D) any other effects that the increased premium rates 
        would have on the economy and homeowners.
    (b) Definition of Pre-FIRM Structure.--For purposes of subsection 
(a), the term ``pre-FIRM structure'' means a structure that was not 
constructed or substantially improved after the later of--
        (1) December 31, 1974; or
        (2) the effective date of the initial rate map published by the 
    Director under section 1360(a)(2) of the National Flood Insurance 
    Act of 1968 for the area in which such structure is located.
    (c) Report.--The Director shall submit a report to the Congress 
describing and explaining the findings of the study conducted under 
this section. The report shall be submitted not later than 12 months 
after the date of enactment of this Act.

SEC. 579. EFFECTIVE DATES OF POLICIES.

    (a) 30-Day Delay.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013), as amended by the preceding provisions of 
this title, is further amended by adding at the end the following new 
subsection:
    ``(c) Effective Date of Policies.--
        ``(1) Waiting period.--Except as provided in paragraph (2), 
    coverage under a new contract for flood insurance coverage under 
    this title entered into after the date of enactment of the Riegle 
    Community Development and Regulatory Improvement Act of 1994, and 
    any modification to coverage under an existing flood insurance 
    contract made after such date, shall become effective upon the 
    expiration of the 30-day period beginning on the date that all 
    obligations for such coverage (including completion of the 
    application and payment of any initial premiums owed) are 
    satisfactorily completed.
        ``(2) Exception.--The provisions of paragraph (1) shall not 
    apply to--
            ``(A) the initial purchase of flood insurance coverage 
        under this title when the purchase of insurance is in 
        connection with the making, increasing, extension, or renewal 
        of a loan; or
            ``(B) the initial purchase of flood insurance coverage 
        pursuant to a revision or updating of floodplain areas or 
        flood-risk zones under section 1360(f), if such purchase occurs 
        during the 1-year period beginning upon publication of notice 
        of the revision or updating under section 1360(h).''.
    (b) Study.--The Director of the Federal Emergency Management Agency 
shall conduct a study to determine the appropriateness of existing 
requirements regarding the effective date and time of coverage under 
flood insurance contracts obtained through the national flood insurance 
program. In conducting the study, the Director shall determine whether 
any delay between the time of purchase of flood insurance coverage and 
the time of initial effectiveness of the coverage should differ for 
various classes of properties (based upon the type of property, 
location of the property, or any other factors related to the property) 
or for various circumstances under which such insurance was purchased. 
Not later than the expiration of the 6-month period beginning on the 
date of enactment of this Act, the Director shall submit to the 
Congress a report on the results of the study.

SEC. 580. AGRICULTURAL STRUCTURES.

    Section 1315(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4022(a)), as amended by the preceding provisions of this title, 
is further amended by adding at the end the following new paragraph:
        ``(2) Agricultural structures.--
            ``(A) Activity restrictions.--Notwithstanding any other 
        provision of law, the adequate land use and control measures 
        required to be adopted in an area (or subdivision thereof) 
        pursuant to paragraph (1) may provide, at the discretion of the 
        appropriate State or local authority, for the repair and 
        restoration to predamaged conditions of an agricultural 
        structure that--
                ``(i) is a repetitive loss structure; or
                ``(ii) has incurred flood-related damage to the extent 
            that the cost of restoring the structure to its predamaged 
            condition would equal or exceed 50 percent of the market 
            value of the structure before the damage occurred.
            ``(B) Premium rates and coverage.--To the extent 
        applicable, an agricultural structure repaired or restored 
        pursuant to subparagraph (A) shall pay chargeable premium rates 
        established under section 1308 at the estimated risk premium 
        rates under section 1307(a)(1). If resources are available, the 
        Director shall provide technical assistance and counseling, 
        upon request of the owner of the structure, regarding wet 
        flood-proofing and other flood damage reduction measures for 
        agricultural structures. The Director shall not be required to 
        make flood insurance coverage available for such an 
        agricultural structure unless the structure is wet flood-
        proofed through permanent or contingent measures applied to the 
        structure or its contents that prevent or provide resistance to 
        damage from flooding by allowing flood waters to pass through 
        the structure, as determined by the Director.
            ``(C) Prohibition on disaster relief.--Notwithstanding any 
        other provision of law, any agricultural structure repaired or 
        restored pursuant to subparagraph (A) shall not be eligible for 
        disaster relief assistance under any program administered by 
        the Director or any other Federal agency.
            ``(D) Definitions.--For purposes of this paragraph--
                ``(i) the term `agricultural structure' means any 
            structure used exclusively in connection with the 
            production, harvesting, storage, raising, or drying of 
            agricultural commodities; and
                ``(ii) the term `agricultural commodities' means 
            agricultural commodities and livestock.''.

SEC. 581. IMPLEMENTATION REVIEW BY DIRECTOR.

    Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4027) is amended--
        (1) by striking ``The Director'' and inserting ``(a) In 
    General.--The Director''; and
        (2) by adding at the end the following new subsection:
    ``(b) Effects of Flood Insurance Program.--The Director shall 
include, as part of the biennial report submitted under subsection (a), 
a chapter reporting on the effects on the flood insurance program 
observed through implementation of requirements under the Riegle 
Community Development and Regulatory Improvement Act of 1994.''.

SEC. 582. PROHIBITED FLOOD DISASTER ASSISTANCE.

    (a) General Prohibition.--Notwithstanding any other provision of 
law, no Federal disaster relief assistance made available in a flood 
disaster area may be used to make a payment (including any loan 
assistance payment) to a person for repair, replacement, or restoration 
for damage to any personal, residential, or commercial property if that 
person at any time has received flood disaster assistance that was 
conditional on the person first having obtained flood insurance under 
applicable Federal law and subsequently having failed to obtain and 
maintain flood insurance as required under applicable Federal law on 
such property.
    (b) Transfer of Property.--
        (1) Duty to notify.--In the event of the transfer of any 
    property described in paragraph (3), the transferor shall, not 
    later than the date on which such transfer occurs, notify the 
    transferee in writing of the requirements to--
            (A) obtain flood insurance in accordance with applicable 
        Federal law with respect to such property, if the property is 
        not so insured as of the date on which the property is 
        transferred; and
            (B) maintain flood insurance in accordance with applicable 
        Federal law with respect to such property.
    Such written notification shall be contained in documents 
    evidencing the transfer of ownership of the property.
        (2) Failure to notify.--If a transferor described in paragraph 
    (1) fails to make a notification in accordance with such paragraph 
    and, subsequent to the transfer of the property--
            (A) the transferee fails to obtain or maintain flood 
        insurance in accordance with applicable Federal law with 
        respect to the property,
            (B) the property is damaged by a flood disaster, and
            (C) Federal disaster relief assistance is provided for the 
        repair, replacement, or restoration of the property as a result 
        of such damage,
    the transferor shall be required to reimburse the Federal 
    Government in an amount equal to the amount of the Federal disaster 
    relief assistance provided with respect to the property.
        (3) Property described.--For purposes of paragraph (1), a 
    property is described in this paragraph if it is personal, 
    commercial, or residential property for which Federal disaster 
    relief assistance made available in a flood disaster area has been 
    provided, prior to the date on which the property is transferred, 
    for repair, replacement, or restoration of the property, if such 
    assistance was conditioned upon obtaining flood insurance in 
    accordance with applicable Federal law with respect to such 
    property.
    (c) Amendment to the Flood Disaster Protection Act of 1973.--
Section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(a)) is amended--
        (1) by striking ``, during the anticipated economic or useful 
    life of the project,''; and
        (2) by adding at the end the following: ``The requirement of 
    maintaining flood insurance shall apply during the life of the 
    property, regardless of transfer of ownership of such property.''.
    (d) Definition.--For purposes of this section, the term ``flood 
disaster area'' means an area with respect to which--
        (1) the Secretary of Agriculture finds, or has found, to have 
    been substantially affected by a natural disaster in the United 
    States pursuant to section 321(a) of the Consolidated Farm and 
    Rural Development Act (7 U.S.C. 1961(a)); or
        (2) the President declares, or has declared, the existence of a 
    major disaster or emergency pursuant to the Robert T. Stafford 
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
    seq.), as a result of flood conditions existing in or affecting 
    that area.
    (e) Effective Date.--This section and the amendments made by this 
section shall apply to disasters declared after the date of enactment 
of this Act.

SEC. 583. REGULATIONS.

    The Director of the Federal Emergency Management Agency and any 
appropriate Federal agency may each issue any regulations necessary to 
carry out the applicable provisions of this title and the applicable 
amendments made by this title.

SEC. 584. RELATION TO STATE AND LOCAL LAWS.

    This title and the amendments made by this title may not be 
construed to preempt, annul, alter, amend, or exempt any person from 
compliance with any law, ordinance, or regulation of any State or local 
government with respect to land use, management, or control.

                      TITLE VI--GENERAL PROVISIONS

SEC. 601. OVERSIGHT HEARINGS.

    It is the sense of the Senate that--
        (a) Congress has a constitutional obligation to conduct 
    oversight of matters relating to the operations of the Government, 
    including matters related to any governmental investigations which 
    may, from time to time, be undertaken.
        (b) The Majority Leader and the Republican Leader should meet 
    and determine the appropriate timetable, procedures, and forum for 
    appropriate Congressional oversight, including hearings on all 
    matters related to ``Madison Guaranty Savings and Loan Association 
    (`MGS&L'), Whitewater Development Corporation and Capital 
    Management Services Inc. (`CMS').''.
        (c) No witness called to testify at these hearings shall be 
    granted immunity under sections 6002 and 6005 of title 18, United 
    States Code, over the objection of Special Counsel Robert B. Fiske, 
    Jr.
        (d) The hearings should be structured and sequenced in such a 
    manner that in the judgment of the Leaders they would not interfere 
    with the ongoing investigation of Special Counsel Robert B. Fiske, 
    Jr.

SEC. 602. TECHNICAL AMENDMENTS TO THE FEDERAL BANKING LAWS.

    (a) Federal Deposit Insurance Act Amendments.--The Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.) is amended--
        (1) in section 3--
            (A) in subsection (i)(1), by striking ``(11)(h)'' and 
        inserting ``(11)(m)'';
            (B) in subsection (l)(4), by striking ``bank's or'' and 
        inserting ``a bank's or a''; and
            (C) in subsection (q)(2)(E), by striking ``Depository 
        Institutions Supervisory Act'' and inserting ``Financial 
        Institutions Supervisory Act of 1966'';
        (2) in section 5(b)(5), by striking the semicolon at the end 
    and inserting a comma;
        (3) in section 5(e)(4), by redesignating clauses (i) and (ii) 
    as subparagraphs (A) and (B) respectively, and indentingP 
    appropriately;
        (4) in section 7(a)(3), by striking ``Chairman of the'' before 
    ``Director of the Office of Thrift Supervision'';
        (5) in section 7(b)(3)(C), by striking the first period at the 
    end;
        (6) in section 7(j)(2)(A), in the third sentence--
            (A) by striking ``this section (j)(2)'' and inserting 
        ``this paragraph''; and
            (B) by striking ``this subsection (j)(2)'' and inserting 
        ``this paragraph'';
        (7) in section 7(j)(7)(A), by striking ``monoplize'' and 
    inserting ``monopolize'';
        (8) in section 7(l)(7), by striking ``the ratio of the value 
    of'' and inserting ``the ratio of'';
        (9) in section 7(m)(5)(A) by striking ``savings association 
    institution'' and inserting ``such institution'';
        (10) in section 7(m)(7), by inserting ``the'' before 
    ``Federal'';
        (11) in section 8(a)(3), by striking ``subparagraph (B) of this 
    subsection'' and inserting ``paragraph (2)(B)'';
        (12) in section 8(a)(7)--
            (A) by inserting a comma after ``Board of Directors''; and
            (B) by striking ``the period the period'' and inserting 
        ``the period'';
        (13) in section 8(b)(4), by striking ``subparagraph (3)'' and 
    inserting ``paragraph (3)'';
        (14) in section 8(c)(2), by striking ``injuction'' and 
    inserting ``injunction'';
        (15) in section 8(g)(2), by striking ``depository institution'' 
    each place such term appears and inserting ``bank'';
        (16) in section 8(o)--
            (A) in the second sentence, by striking ``subsection (b)'' 
        and inserting ``subsection (d)''; and
            (B) by striking ``board of directors'' each place such term 
        appears and inserting ``Board of Directors'';
        (17) in section 8(p), by striking ``banking'' each place such 
    term appears and inserting ``depository'';
        (18) in section 8(r)(2), by striking ``therof'' and inserting 
    ``thereof'';
        (19) in section 10(b)(1), by striking ``claim'' and inserting 
    ``claims'';
        (20) in section 10(b)(2)(B), by adding ``and'' at the end;
        (21) in the section heading for paragraph (4) of section 11(a), 
    by striking ``Provisions'' and inserting ``provisions'';
        (22) in section 11(d)(2)(B)(iii), by striking ``is'' and 
    inserting ``are'';
        (23) in section 11(d)(8)(B)(ii), by inserting ``provide'' 
    before ``a statement'';
        (24) in section 11(d)(14)(B), by striking ``statute of 
    limitation'' and inserting ``statute of limitations'';
        (25) in section 11(d)(16)(B)(iv), by striking ``dispositions'' 
    and inserting ``disposition'';
        (26) in section 11(e)(8)(D)(v)(I), by inserting a closing 
    parenthesis after ``1934'';
        (27) in section 11(e)(12)(B), by striking ``directors or 
    officers'' and inserting ``director's or officer's'';
        (28) in section 11(f)(3)(A), by striking ``to'' in the heading 
    and inserting ``with'';
        (29) in the second sentence of section 11(i)(3)(A), by striking 
    ``other claimant or category or claimants'' and inserting ``other 
    claimant or category of claimants'';
        (30) in section 11(n)(4)(E)(i), by adding ``and'' at the end;
        (31) in section 11(n)(12)(A), by striking ``subparagraphs'' and 
    inserting ``subparagraph'';
        (32) in the second sentence of section 11(q)(1), by striking 
    ``decided'' and inserting ``held'';
        (33) in section 11(u)(3)(B), by striking ``subsection (c)(9)'' 
    and inserting ``section 40(p)'';
        (34) in section 13(c)(1)(B)--
            (A) by striking ``a in default insured bank'' and inserting 
        ``an insured bank in default''; and
            (B) by striking ``such in default insured bank'' and 
        inserting ``such insured bank'';
        (35) in section 13(c)(2)(A)--
            (A) by striking ``with an insured institution'' and 
        inserting ``with another insured depository institution''; and
            (B) by striking ``by an insured institution'' and inserting 
        ``by another insured depository institution'';
        (36) in section 13(f)(2)(B)(i), by striking ``the in default 
    insured bank'' and inserting ``the insured bank in default'';
        (37) in section 13(f)(2)(B)(iii), by striking ``of of'' and 
    inserting ``of'';
        (38) in section 13(f)(3), by striking ``closing'' in the 
    heading and inserting ``default'';
        (39) in section 13(f)(6)(A), by striking ``bank that has in 
    default'' and inserting ``bank that is in default'';
        (40) in section 13(f)(6)(B)(i), by striking the semicolon at 
    the end and inserting a period;
        (41) in section 13(f)(7)--
            (A) in subparagraph (A), by striking ``or'' at the end; and
            (B) in subparagraph (B), by striking the period at the end 
        and inserting ``; or'';
        (42) in section 13(f)(12)(A), by striking ``is less than'' and 
    inserting ``are less than'';
        (43) in section 15(c)(1), by striking ``obligations 
    liabilities'' in the heading and inserting ``obligations, 
    guarantees, and liabilities'';
        (44) in section 18(b), by striking ``, if such bank shall 
    deposit'' and inserting ``if the insured depository institution 
    deposits'';
        (45) in section 18(c)(1)(B), by inserting ``or'' at the end;
        (46) in section 18(c)(4), by striking ``other two banking 
    agencies'' each place such term appears and inserting ``other 
    Federal banking agencies'';
        (47) in section 18(c)(6), by striking ``other two banking 
    agencies'' and inserting ``other Federal banking agencies'';
        (48) in section 18(c)(9), by striking ``with the following 
    information:'' and inserting ``with--'';
        (49) in section 18(f)--
            (A) by striking ``such bank'' and inserting ``such insured 
        depository institution''; and
            (B) by striking ``the bank'' and inserting ``the insured 
        depository institution'';
        (50) in section 18(k)(4)(A)(ii)(II), by striking ``or'' at the 
    end;
        (51) in section 20(a)(3), by inserting ``or'' at the end;
        (52) in section 21(c), by striking ``the bank'' and inserting 
    ``the insured depository institution'';
        (53) in section 21(d)(2), by striking ``the bank'' and 
    inserting ``the insured depository institution'';
        (54) in section 21(e), by striking ``the bank'' and inserting 
    ``the insured depository institution'';
        (55) in section 25(a), by striking ``the bank'' each place it 
    appears and inserting ``the insured depository institution, insured 
    branch, or bank'';
        (56) in section 28(c)(2)(A)(i) by striking ``, or'' and 
    inserting ``; or'';
        (57) in section 28(d)(4)(C), by striking ``subparagraphs'' and 
    inserting ``subparagraph'';
        (58) in section 28(e)(4), by striking ``any other'' and 
    inserting ``and any other'';
        (59) in section 30(e)(1)(A), by striking ``venders'' and 
    inserting ``the vendors'';
        (60) in section 31(b)(1), by striking ``Board of Directors'' 
    and inserting ``board of directors'';
        (61) in section 33(c)(1), by striking the comma at the end and 
    inserting a semicolon;
        (62) in section 34(a)(1)(A)(iii)--
            (A) by striking ``sections'' and inserting ``section''; and
            (B) by striking ``and'' and inserting ``or'';
        (63) in section 34(a)(2), by adding a period at the end;
        (64) in section 38(f)(6), by striking ``Commisssion'' and 
    inserting ``Commission'';
        (65) in section 40(c)(4)(A), by striking ``subsections 
    (p)(12)(B) and (C)'' and inserting ``subparagraphs (B) and (C) of 
    subsection (p)(12)''; and
        (66) in section 40(d)(8)(A), by striking ``meeting'' and 
    inserting ``meeting the''.
    (b) Federal Home Loan Bank Act.--Section 21A of theP Federal Home 
Loan Bank Act (12 U.S.C. 1441a) is amended--
        (1) in subsection (a)(11), by striking ``a United States 
    District Court'' and inserting ``a United States district court'';
        (2) in subsection (b)(11)(B)(iii), by striking the comma after 
    ``chapter 5'';
        (3) in subsection (b)(11)(E)(iv)(II), by striking 
    ``knowledgable'' and inserting ``knowledgeable'';
        (4) in subsection (b)(11)(G), by inserting ``Advisory 
    personnel.--'' before ``The Corporation shall'';
        (5) in subsection (r)(4), by striking ``subsection.--'' and 
    inserting ``subsection, the following definitions shall apply:'';
        (6) in subsection (s)(2), by striking ``subsection--'' and 
    inserting ``subsection, the following definitions shall apply:''; 
    and
        (7) in subsection (u)(5), by striking ``subsection--'' and 
    inserting ``subsection, the following definitions shall apply:''.
    (c) Resolution Trust Corporation Completion Act.--Section 21(a) of 
the Resolution Trust Corporation Completion Act (107 Stat. 2406) is 
amended--
        (1) by striking ``33(a)'' and inserting ``33'';
        (2) by striking ``1831j(a)'' and inserting ``1831j'';
        (3) in paragraph (1), by striking ``paragraph (1)'' and 
    inserting ``subsection (a)(1)''; and
        (4) in paragraph (2), by striking ``paragraph (2)'' and 
    inserting ``subsection (a)(2)''.
    (d) Federal Reserve Act.--Section 7(a) of the Federal Reserve Act 
(12 U.S.C. 289) is amended--
        (1) in paragraph (1)(B), by inserting ``(A)'' after 
    ``subparagraph''; and
        (2) in paragraph (2), by striking ``subparagraph (A)'' and 
    inserting ``paragraph (1)(A)''.
    (e) Repeal of Provisions in the Revised Statutes.--The following 
sections of the Revised Statutes are hereby repealed:
        (1) Section 5170 (12 U.S.C. 28).
        (2) Section 5203 (12 U.S.C. 87).
        (3) Section 5206 (12 U.S.C. 88).
        (4) Section 5196 (12 U.S.C. 89).
        (5) Section 5158 (12 U.S.C. 102).
        (6) Section 5159 (12 U.S.C. 101a).
        (7) Section 5172 (12 U.S.C. 104).
        (8) Section 5173 (12 U.S.C. 107).
        (9) Section 5174 (12 U.S.C. 108).
        (10) Section 5182 (12 U.S.C. 109).
        (11) Section 5183 (12 U.S.C. 110).
        (12) Section 5195 (12 U.S.C. 123).
        (13) Section 5184 (12 U.S.C. 124).
        (14) Section 5226 (12 U.S.C. 131).
        (15) Section 5227 (12 U.S.C. 132).
        (16) Section 5228 (12 U.S.C. 133).
        (17) Section 5229 (12 U.S.C. 134).
        (18) Section 5230 (12 U.S.C. 137).
        (19) Section 5231 (12 U.S.C. 138).
        (20) Section 5232 (12 U.S.C. 135).
        (21) Section 5233 (12 U.S.C. 136).
        (22) Section 5185 (12 U.S.C. 151).
        (23) Section 5186 (12 U.S.C. 152).
        (24) Section 5160 (12 U.S.C. 168).
        (25) Section 5161 (12 U.S.C. 169).
        (26) Section 5162 (12 U.S.C. 170).
        (27) Section 5163 (12 U.S.C. 171).
        (28) Section 5164 (12 U.S.C. 172).
        (29) Section 5165 (12 U.S.C. 173).
        (30) Section 5166 (12 U.S.C. 174).
        (31) Section 5167 (12 U.S.C. 175).
        (32) Section 5222 (12 U.S.C. 183).
        (33) Section 5223 (12 U.S.C. 184).
        (34) Section 5224 (12 U.S.C. 185).
        (35) Section 5225 (12 U.S.C. 186).
        (36) Section 5237 (12 U.S.C. 195).
    (f) Repeal of Other Obsolete Provisions in Banking Laws.--The 
following provisions of law are hereby repealed:
        (1) Section 26 of the Federal Deposit Insurance Act (12 U.S.C. 
    1831c).
        (2) Section 12 of the Act entitled ``An Act To define and fix 
    the standard of value, to maintain the parity of all forms of money 
    issued or coined by the United States, to refund the public debt, 
    and for other purposes.'' and approved March 14, 1900 (12 U.S.C. 
    101).
        (3) Section 3 of the Act entitled ``An Act To amend the laws 
    relating to the denominations of circulating notes by national 
    banks and to permit the issuance of notes of small denominations, 
    and for other purposes.'' and approved October 5, 1917 (12 U.S.C. 
    103).
        (4) The following sections of the Act entitled ``An Act fixing 
    the amount of United States notes, providing for a redistribution 
    of the national-bank currency, and for other purposes.'' and 
    approved June 20, 1874:
            (A) Section 5 (12 U.S.C. 105).
            (B) Section 3 (12 U.S.C. 121).
            (C) Section 8 (12 U.S.C. 126).
            (D) Section 4 (12 U.S.C. 176).
        (5) The following sections of the Act entitled ``An Act to 
    enable national-banking associations to extend their corporate 
    existence, and for other purposes.'' and approved July 12, 1882:
            (A) Section 8 (12 U.S.C. 177).
            (B) Section 9 (12 U.S.C. 178).
        (6) The Act entitled ``An Act to amend the national bank act in 
    providing for the redemption of national bank notes stolen from or 
    lost by banks of issue.'' and approved July 28, 1892 (12 U.S.C. 
    125).
        (7) The Act entitled ``An Act authorizing the conversion of 
    national gold banks.'' and approved February 14, 1880 (12 U.S.C. 
    153).
    (g) Amendments to Other Laws.--
        (1) The 8th paragraph of the 4th undesignated paragraph of 
    section 4 of the Federal Reserve Act (12 U.S.C. 341) is amended by 
    striking ``Comptroller of the Currency'' and inserting ``Secretary 
    of the Treasury''.
        (2) Section 11(d) of the Federal Reserve Act (12 U.S.C. 248(d)) 
    is amended--
            (A) by striking ``bureau under the charge of the 
        Comptroller of the Currency'' and inserting ``Secretary of the 
        Treasury''; and
            (B) by striking ``Comptroller'' and inserting ``Secretary 
        of the Treasury''.
        (3) The 1st sentence of the 8th undesignated paragraph of 
    section 16 of the Federal Reserve Act (12 U.S.C. 418) is amended by 
    striking ``the Comptroller of the Currency shall under the 
    direction of the Secretary of the Treasury,'' and inserting ``the 
    Secretary of the Treasury shall''.
        (4) The 9th undesignated paragraph of section 16 of the Federal 
    Reserve Act (12 U.S.C. 419) is amended to read as follows:
        ``When such notes have been prepared, the notes shall be 
    delivered to the Board of Governors of the Federal Reserve System 
    subject to the order of the Secretary of the Treasury for the 
    delivery of such notes in accordance with this Act.''.
        (5) The 10th undesignated paragraph of section 16 of the 
    Federal Reserve Act (12 U.S.C. 420) is amended--
            (A) by striking ``Comptroller of the Currency'' and 
        inserting ``Secretary of the Treasury''; and
            (B) by striking ``Federal Reserve Board'' and inserting 
        ``Board of Governors of the Federal Reserve System''.
        (6) The 11th undesignated paragraph of section 16 of the 
    Federal Reserve Act (12 U.S.C. 421) is amended to read as follows:
        ``The Secretary of the Treasury may examine the plates, dies, 
    bed pieces, and other material used in the printing of Federal 
    Reserve notes and issue regulations relating to such 
    examinations.''.
        (7) The 6th undesignated paragraph of section 18 of the Federal 
    Reserve Act (38 Stat. 269) is amended--
            (A) by striking ``Comptroller of the Currency'' each place 
        it appears and inserting ``Secretary of the Treasury''; and
            (B) in the 7th sentence, by striking ``Comptroller'' and 
        inserting ``Secretary of the Treasury''.
        (8) The Act entitled ``An Act to provide for the redemption of 
    national-bank notes, Federal Reserve bank notes, and Federal 
    Reserve notes which cannot be identified as to the bank of issue.'' 
    and approved June 13, 1933, is amended--
            (A) in the 1st section (12 U.S.C. 121a)--
                (i) by striking ``whenever any national-bank notes, 
            Federal Reserve bank notes,'' and inserting ``whenever any 
            Federal Reserve bank notes''; and
                (ii) by striking ``, and the notes, other than Federal 
            Reserve notes, so redeemed shall be forwarded to the 
            Comptroller of the Currency for cancellation and 
            destruction''; and
            (B) in section 2 (12 U.S.C. 122a)--
                (i) by striking ``National-bank notes and''; and
                (ii) by striking ``national-bank notes and''.
        (9) The 1st section of the Act entitled ``An Act making 
    appropriations for sundry civil expenses of the Government for the 
    fiscal year ending June thirtieth, eighteen hundred and seventy-
    six, and for other purposes.'' and approved March 3, 1875, is 
    amended in the 1st paragraph which appears under the heading 
    ``national currency'' by striking ``Secretary of the Treasury: 
    Provided, That'' and all that follows through the period and 
    inserting ``Secretary of the Treasury.''.
        (10) The Act entitled ``An Act to simplify the accounts of the 
    Treasurer of the United States, and for other purposes.'' and 
    approved October 10, 1940 (12 U.S.C. 177a) is amended by striking 
    all after the enacting clause and inserting the following: ``That 
    the cost of transporting and redeeming outstanding national bank 
    notes and Federal Reserve bank notes as may be presented to the 
    Treasurer of the United States for redemption shall be paid from 
    the regular annual appropriation for the Department of the 
    Treasury.''.
        (11) Section 5234 of the Revised Statutes (12 U.S.C. 192) is 
    amended by striking ``has refused to pay its circulating notes as 
    therein mentioned, and''.
        (12) Section 5236 of the Revised Statutes (12 U.S.C. 194) is 
    amended by striking ``, after full provision has been first made 
    for refunding to the United States any deficiency in redeeming the 
    notes of such association''.
        (13) Section 5238 of the Revised Statutes (12 U.S.C. 196) is 
    amended by striking the 1st sentence.
        (14) Section 5119(b)(2) of title 31, United States Code, is 
    amended by adding at the end the following: ``The Secretary shall 
    not be required to reissue United States currency notes upon 
    redemption.''.
    (h) Amendments to Outdated Dividend Provisions.--
        (1) Withdrawal of capital.--Section 5204 of the Revised 
    Statutes (12 U.S.C. 56) is amended--
            (A) in the 2d sentence, by striking ``net profits then on 
        hand, deducting therefrom its losses and bad debts'' and 
        inserting ``undivided profits, subject to other applicable 
        provisions of law''; and
            (B) by striking the 3d sentence.
        (2) Declaration of dividends.--Section 5199 of the Revised 
    Statutes (12 U.S.C. 60) is amended--
            (A) in the 1st sentence, by striking ``net profits of the 
        association'' and inserting ``undivided profits of the 
        association, subject to the limitations in subsection (b),'';
            (B) by striking ``net profits'' each subsequent place such 
        term appears and inserting ``net income''; and
            (C) by striking subsection (c).
    (i) Clerical Amendments.--
        (1) The table of sections for chapter 1 of title LXII of the 
    Revised Statutes of the United States is amended--
            (A) by inserting after the item relating to section 5156 
        the following new item:
    ``5156A. Mergers, consolidations, and other acquisitions 
              authorized.'';

        and
            (B) by striking the items relating to sections 5141 and 
        5151.
        (2) The table of sections for chapter 2 of title LXII of the 
    Revised Statutes of the United States is amended by striking the 
    item relating to each of the following sections:
            (A) Section 5158.
            (B) Section 5159.
            (C) Section 5160.
            (D) Section 5161.
            (E) Section 5162.
            (F) Section 5163.
            (G) Section 5164.
            (H) Section 5165.
            (I) Section 5166.
            (J) Section 5167.
            (K) Section 5170.
            (L) Section 5171.
            (M) Section 5172.
            (N) Section 5173.
            (O) Section 5174.
            (P) Section 5175.
            (Q) Section 5176.
            (R) Section 5177.
            (S) Section 5178.
            (T) Section 5179.
            (U) Section 5180.
            (V) Section 5181.
            (W) Section 5182.
            (X) Section 5183.
            (Y) Section 5184.
            (Z) Section 5185.
            (AA) Section 5186.
            (BB) Section 5187.
            (CC) Section 5188.
            (DD) Section 5189.
        (3) The table of sections for chapter 3 of title LXII of the 
    Revised Statutes of the United States is amended by striking the 
    item relating to each of the following sections:
            (A) Section 5193.
            (B) Section 5194.
            (C) Section 5195.
            (D) Section 5196.
            (E) Section 5202.
            (F) Section 5203.
            (G) Section 5206.
            (H) Section 5209.
            (I) Section 5212.
        (4) The table of sections for chapter 4 of title LXII of the 
    Revised Statutes of the United States is amended--
            (A) by inserting after the item relating to section 5239 
        the following new item:

    ``5239A. Regulatory authority.'';

        and
            (B) by striking the items relating to the following 
        sections:
                (i) Section 5222.
                (ii) Section 5223.
                (iii) Section 5224.
                (iv) Section 5225.
                (v) Section 5226.
                (vi) Section 5227.
                (vii) Section 5228.
                (viii) Section 5229.
                (ix) Section 5230.
                (x) Section 5231.
                (xi) Section 5232.
                (xii) Section 5233.
                (xiii) Section 5237.
                (xiv) Section 5243.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.`