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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 650 Reported in Senate (RS)]

                                                       Calendar No. 272

104th CONGRESS

  1st Session

                                 S. 650

                          [Report No. 104-185]

_______________________________________________________________________

                                 A BILL

To increase the amount of credit available to fuel local, regional, and 
national economic growth by reducing the regulatory burden imposed upon 
            financial institutions, and for other purposes.

_______________________________________________________________________

                           December 14, 1995

                       Reported with an amendment
                                                       Calendar No. 272
104th CONGRESS
  1st Session
                                 S. 650

                          [Report No. 104-185]

To increase the amount of credit available to fuel local, regional, and 
national economic growth by reducing the regulatory burden imposed upon 
            financial institutions, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

               March 30 (legislative day, March 27), 1995

Mr. Shelby (for himself, Mr. Mack, Mr. D'Amato, Mr. Bryan, Mr. Bennett, 
Mr. Faircloth, Mr. Bond, Mr. Gramm, Mr. Dole, Mr. Grams, Mr. Frist, Mr. 
Hollings, Mr. Kyl, Mr. Burns, Mr. Thomas, Mr. Helms, Mr. Pressler, Mr. 
  Craig, Mr. Heflin, Mr. Gregg, Mr. Coats, Mr. Lott, Mr. Cochran, Mr. 
   Nickles, Mr. Ashcroft, Mr. Kempthorne, Mr. Nunn, and Mr. Warner) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

                           December 14, 1995

               Reported by Mr. D'Amato, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To increase the amount of credit available to fuel local, regional, and 
national economic growth by reducing the regulatory burden imposed upon 
            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,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Economic 
Growth and Regulatory Paperwork Reduction Act of 1995''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Definitions.
       <DELETED>TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

             <DELETED>Subtitle A--The Home Mortgage Process

       <DELETED>Part I--Regulatory Simplification and Uniformity

<DELETED>Sec. 101. Coordination of the Truth in Lending Act and the 
                            Real Estate Settlement Procedures Act.
<DELETED>Sec. 102. Elimination of redundant regulators.
<DELETED>Sec. 103. General exemption authority for loans.
<DELETED>Sec. 104. Reductions in Real Estate Settlement Procedures Act 
                            regulatory burdens.
<DELETED>Part II--Clarifications to Reduce Costs and Regulatory Burdens

<DELETED>Sec. 111. Exemption for certain borrowers.
<DELETED>Sec. 112. Alternative disclosures for adjustable rate 
                            mortgages.
<DELETED>Sec. 113. Treatment of certain charges.
<DELETED>Sec. 114. Exemptions from rescission.
<DELETED>Sec. 115. Tolerances; basis of disclosures.
<DELETED>Sec. 116. Limitation on liability.
<DELETED>Sec. 117. Limitation on rescission period.
<DELETED>Sec. 118. Assignee liability.
<DELETED>Sec. 119. Modification of waiver of right of rescission.
<DELETED>Sec. 120. Applicability.
 <DELETED>Subtitle B--Amendments to the Community Reinvestment Act of 
                                  1977

<DELETED>Sec. 131. Expression of congressional intention.
<DELETED>Sec. 132. Small bank exemption.
<DELETED>Sec. 133. Community input and conclusive rating.
<DELETED>Sec. 134. Special purpose banks.
<DELETED>Sec. 135. Increased incentives to lending to low- and 
                            moderate-income communities.
              <DELETED>Subtitle C--Payment of Interest Act

<DELETED>Sec. 141. Payment of Interest Act.
         <DELETED>TITLE II--STREAMLINING GOVERNMENT REGULATION

 <DELETED>Subtitle A--Eliminating Unnecessary Regulatory Requirements 
                             and Procedures

<DELETED>Sec. 201. Streamlining of prior approval requirement for 
                            certain acquisitions.
<DELETED>Sec. 202. Elimination of certain filing and approval 
                            requirements for certain insured depository 
                            institutions.
<DELETED>Sec. 203. Elimination of redundant approval requirement for 
                            OAKAR transactions.
<DELETED>Sec. 204. Elimination of unnecessary branch applications.
<DELETED>Sec. 205. Elimination of duplicative requirements imposed upon 
                            bank holding companies under the Home 
                            Owners' Loan Act.
<DELETED>Sec. 206. Elimination of the per branch capital requirement 
                            for national banks and State member banks.
<DELETED>Sec. 207. Elimination of branch application requirements for 
                            automatic teller machines.
<DELETED>Sec. 208. Elimination of requirement for approval of 
                            investments in bank premises for well 
                            capitalized and well managed banks.
<DELETED>Sec. 209. Elimination of approval requirement for 
                            divestitures.
<DELETED>Sec. 210. Elimination of unnecessary filing for officer and 
                            director appointments.
<DELETED>Sec. 211. Amendments to the Depository Institutions Management 
                            Interlocks Act.
<DELETED>Sec. 212. Elimination of recordkeeping and reporting 
                            requirements for officers.
<DELETED>Sec. 213. Abolition of Appraisal Subcommittee; transfer of 
                            functions.
<DELETED>Sec. 214. Branch closures.
<DELETED>Sec. 215. Foreign banks.
   <DELETED>Subtitle B--Eliminating Unnecessary Costs and Paperwork 
                                Burdens

<DELETED>Sec. 221. Small bank examination cycle.
<DELETED>Sec. 222. Reimbursement for corporate records.
<DELETED>Sec. 223. Required regulatory review of regulations.
  <DELETED>Subtitle C--Eliminating Unnecessary Reporting Requirements

<DELETED>Sec. 231. Prohibition on additional reporting under Community 
                            Reinvestment Act of 1977.
<DELETED>Sec. 232. Exemption from community support requirements of the 
                            Federal Home Loan Bank Act for institutions 
                            meeting certain criteria.
<DELETED>Sec. 233. Recording requirements.
<DELETED>Sec. 234. Identification of nonbank financial institution 
                            customers.
<DELETED>Sec. 235. Repeal of commercial loan reporting requirements.
<DELETED>Sec. 236. Increase in Home Mortgage Disclosure Act; disclosure 
                            exemption.
<DELETED>Sec. 237. Elimination of stock loan reporting requirement.
            <DELETED>Subtitle D--Regulatory Micromanagement

<DELETED>Sec. 241. National bank directors.
<DELETED>Sec. 242. Paperwork reduction review.
<DELETED>Sec. 243. State bank representation on Board of Directors of 
                            the FDIC.
  <DELETED>TITLE III--REGULATORY IMPACT ON COST OF CREDIT AND CREDIT 
                              AVAILABILITY

   <DELETED>Subtitle A--Lowering Compliance Costs To Promote Credit 
                              Availability

<DELETED>Sec. 301. Audit costs.
<DELETED>Sec. 302. Incentives for self-testing.
<DELETED>Sec. 303. Exemption for savings institutions serving military 
                            personnel.
<DELETED>Sec. 304. Qualified thrift investment amendments.
<DELETED>Sec. 305. Daylight overdrafts incurred by Federal home loan 
                            banks.
<DELETED>Sec. 306. Application for membership in the Federal home loan 
                            bank system.
<DELETED>Sec. 307. Authority for Federal home loan banks to select 
                            external auditors.
<DELETED>Sec. 308. Limited purpose bank growth cap relief.
           <DELETED>Subtitle B--Disincentives to Risk-Taking

<DELETED>Sec. 311. Due process protections.
       <DELETED>Subtitle C--Miscellaneous Nonsupervisory Reforms

<DELETED>Sec. 321. Liability for unauthorized use of credit cards.
<DELETED>Sec. 322. Unauthorized electronic fund transfers.

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    For purposes of this Act--</DELETED>
        <DELETED>    (1) the term ``Appraisal Subcommittee'' means the 
        Appraisal Subcommittee established under section 1011 of the 
        Federal Financial Institutions Examination Council Act of 1978 
        (as in existence prior to the date of enactment of this 
        Act);</DELETED>
        <DELETED>    (2) the term ``appropriate Federal banking 
        agency'' has the same meaning as in section 3 of the Federal 
        Deposit Insurance Act;</DELETED>
        <DELETED>    (3) the term ``Council'' means the Federal 
        Financial Institutions Examination Council established under 
        section 1004 of the Federal Financial Institutions Examination 
        Council Act of 1978;</DELETED>
        <DELETED>    (4) the term ``insured depository institution'' 
        has the same meaning as in section 3 of the Federal Deposit 
        Insurance Act; and</DELETED>
        <DELETED>    (5) the term ``insured credit union'' has the same 
        meaning as in section 101 of the Federal Credit Union 
        Act.</DELETED>

  <DELETED>TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION</DELETED>

        <DELETED>Subtitle A--The Home Mortgage Process</DELETED>

  <DELETED>PART I--REGULATORY SIMPLIFICATION AND UNIFORMITY</DELETED>

<DELETED>SEC. 101. COORDINATION OF THE TRUTH IN LENDING ACT AND THE 
              REAL ESTATE SETTLEMENT PROCEDURES ACT.</DELETED>

<DELETED>    (a) Amendments to Truth in Lending Act.--Section 105 of 
the Truth in Lending Act (15 U.S.C. 1604) is amended by adding at the 
end the following new subsection:</DELETED>
<DELETED>    ``(e) Authority To Eliminate, Modify, or Simplify 
Disclosure Requirements.--The Board shall, by regulation, eliminate, 
modify, or simplify any disclosure required by this title, including 
the content and timing of the disclosure, if such action would make 
disclosures and timing of disclosures required by this title uniform 
with other laws relating to the disclosure of information in connection 
with credit transactions, including the Real Estate Settlement 
Procedures Act. No disclosure requirement may be imposed under this 
subsection unless such requirement would have the effect of 
eliminating, modifying, or simplifying any disclosure required under 
this title.''.</DELETED>
<DELETED>    (b) Amendments to Real Estate Settlement Procedures Act.--
Section 19 of the Real Estate Settlement Procedures Act (12 U.S.C. 
2617) is amended by adding at the end the following new 
subsection:</DELETED>
<DELETED>    ``(d) Authority To Eliminate, Modify, or Simplify 
Disclosure Requirements.--The Board shall, by regulation, eliminate, 
modify, or simplify any disclosure required by this title, including 
the content and timing of the disclosure, if such action would make 
disclosures and timing of disclosures required by this title uniform 
with other laws relating to the disclosure of information in connection 
with credit transactions, including the Truth in Lending Act. No 
disclosure requirement may be imposed under this subsection unless such 
requirement would have the effect of eliminating, modifying, or 
simplifying any disclosure required under this title.''.</DELETED>

<DELETED>SEC. 102. ELIMINATION OF REDUNDANT REGULATORS.</DELETED>

<DELETED>    (a) Definition.--Section 3 of the Real Estate Settlement 
Procedures Act (12 U.S.C. 2602) is amended--</DELETED>
        <DELETED>    (1) in paragraph (7), by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (8), by striking the period at 
        the end and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(9) the term `Board' means the Board of 
        Governors of the Federal Reserve System.''.</DELETED>
<DELETED>    (b) Conforming Amendments.--The Real Estate Settlement 
Procedures Act (12 U.S.C. 2601 et seq.) is amended--</DELETED>
        <DELETED>    (1) in section 4, by striking ``Secretary'' each 
        place such term appears and inserting ``Board'';</DELETED>
        <DELETED>    (2) in section 5, by striking ``Secretary'' each 
        place such term appears and inserting ``Board'';</DELETED>
        <DELETED>    (3) in section 6, by striking ``Secretary'' each 
        place such term appears and inserting ``Board'';</DELETED>
        <DELETED>    (4) in section 8--</DELETED>
                <DELETED>    (A) in subsection (c), by striking ``the 
                Secretary,'' and inserting ``the Board,''; 
                and</DELETED>
                <DELETED>    (B) in subsection (d), by striking 
                ``Secretary'' each place such term appears and 
                inserting ``Board'';</DELETED>
        <DELETED>    (5) in section 10, by striking ``Secretary'' each 
        place such term appears and inserting ``Board'';</DELETED>
        <DELETED>    (6) in section 13, by striking ``Secretary'' and 
        inserting ``Board'';</DELETED>
        <DELETED>    (7) in section 15--</DELETED>
                <DELETED>    (A) by striking ``Secretary'' each place 
                such term appears and inserting ``Board''; 
                and</DELETED>
                <DELETED>    (B) by striking ``the Secretary's 
                assessment'' and inserting ``the assessment of the 
                Board'';</DELETED>
        <DELETED>    (8) in section 16, by striking ``Secretary'' each 
        place such term appears and inserting ``Board''; and</DELETED>
        <DELETED>    (9) in section 18, by striking ``Secretary'' each 
        place such term appears and inserting ``Board''.</DELETED>
<DELETED>    (c) Regulations.--Section 19(a) of the Real Estate 
Settlement Procedures Act (12 U.S.C. 2617) is amended to read as 
follows:</DELETED>
<DELETED>    ``(a) Regulations.--</DELETED>
        <DELETED>    ``(1) In general.--The Board shall prescribe such 
        regulations as may be necessary to carry out this 
        title.</DELETED>
        <DELETED>    ``(2) Specifications.--The regulations promulgated 
        under paragraph (1)--</DELETED>
                <DELETED>    ``(A) may contain such classifications, 
                differentiations, or other provisions, and may provide 
                for such adjustments and exceptions for any class of 
                transactions, as the Board determines to be necessary 
                or proper to--</DELETED>
                        <DELETED>    ``(i) effectuate the purposes of 
                        this title;</DELETED>
                        <DELETED>    ``(ii) prevent circumvention or 
                        evasion of this title; or</DELETED>
                        <DELETED>    ``(iii) facilitate compliance with 
                        this title; and</DELETED>
                <DELETED>    ``(B) shall minimize the burdens and cost 
                imposed upon creditors and shall ensure that costs, 
                burdens, and complexities to consumers are 
                reduced.''.</DELETED>
<DELETED>    (d) Administrative Enforcement.--The Real Estate 
Settlement Procedures Act (12 U.S.C. 2601 et seq.) is amended by adding 
at the end the following new section:</DELETED>

<DELETED>``SEC. 20. ADMINISTRATIVE ENFORCEMENT.</DELETED>

<DELETED>    ``(a) In General.--Compliance with the requirements 
imposed under this title shall be enforced under--</DELETED>
        <DELETED>    ``(1) section 8 of the Federal Deposit Insurance 
        Act, with respect to--</DELETED>
                <DELETED>    ``(A) any national bank or any Federal 
                branch or Federal agency of a foreign bank, by the 
                Office of the Comptroller of the Currency;</DELETED>
                <DELETED>    ``(B) any member bank of the Federal 
                Reserve System (other than a national bank), any branch 
                or agency of a foreign bank (other than a Federal 
                branch or Federal agency, or insured State branch of a 
                foreign bank), any commercial lending company owned or 
                controlled by one or more foreign banks, or any 
                organization operating under section 25 or 25A of the 
                Federal Reserve Act, by the Board;</DELETED>
                <DELETED>    ``(C) any bank insured under the Federal 
                Deposit Insurance Act (other than a member of the 
                Federal Reserve System) or any insured State branch of 
                a foreign bank, by the Board of Directors of the 
                Federal Deposit Insurance Corporation; and</DELETED>
                <DELETED>    ``(D) any savings association the deposits 
                of which are insured under the Federal Deposit 
                Insurance Act, by the Director of the Office of Thrift 
                Supervision;</DELETED>
        <DELETED>    ``(2) the Federal Credit Union Act, by the 
        Administrator of the National Credit Union Administration with 
        respect to any Federal credit union;</DELETED>
        <DELETED>    ``(3) the Packers and Stockyards Act, 1921 (except 
        as provided in section 406 of such Act), by the Secretary of 
        Agriculture with respect to any activities subject to such Act; 
        and</DELETED>
        <DELETED>    ``(4) the Farm Credit Act of 1971, by the Farm 
        Credit Administration with respect to any institution referred 
        to in section 1.2(a) of that Act.</DELETED>
<DELETED>    ``(b) Definitions.--Each term in subsection (a)(1) that is 
not defined in this title shall have the same meaning as in section 
1(b) of the International Banking Act of 1978.</DELETED>
<DELETED>    ``(c) Additional Enforcement Powers.--</DELETED>
        <DELETED>    ``(1) Violations.--For the purpose of the exercise 
        by any agency referred to in subsection (a) of the powers of 
        the agency under any Act referred to in that subsection, a 
        violation of any requirement imposed under this title shall be 
        deemed to be a violation of a requirement imposed under that 
        Act.</DELETED>
        <DELETED>    ``(2) Powers.--In addition to the powers of the 
        agency under any provision of law specifically referred to in 
        subsection (a), each agency referred to in that subsection may 
        exercise, for the purpose of enforcing compliance with any 
        requirement imposed under this title, any other authority 
        conferred on the agency by law.</DELETED>
        <DELETED>    ``(3) Regulations by agencies other than the 
        board.--The authority of the Board to promulgate regulations 
        under this title does not impair the authority of any other 
        agency referred to in subsection (a) to make rules regarding 
        the procedures of the Board in enforcing compliance with the 
        requirements imposed under this title.</DELETED>
<DELETED>    ``(d) FTC Enforcement.--</DELETED>
        <DELETED>    ``(1) In general.--Except to the extent that the 
        enforcement of the requirements imposed under this title is 
        specifically committed to another agency of the Federal 
        Government under subsection (a), the Federal Trade Commission 
        shall enforce such requirements.</DELETED>
        <DELETED>    ``(2) Violations.--For the purpose of the exercise 
        by the Federal Trade Commission of the functions and powers of 
        the Commission under the Federal Trade Commission Act, a 
        violation of any requirement imposed under this title shall be 
        deemed to be a violation of a requirement imposed under that 
        Act.</DELETED>
        <DELETED>    ``(3) Functions and powers.--All of the functions 
        and powers of the Federal Trade Commission under the Federal 
        Trade Commission Act are available to the Federal Trade 
        Commission to enforce compliance by any person with the 
        requirements imposed under this title, regardless of whether or 
        not the person is engaged in commerce or meets any other 
        jurisdictional tests in the Federal Trade Commission 
        Act.''.</DELETED>

<DELETED>SEC. 103. GENERAL EXEMPTION AUTHORITY FOR LOANS.</DELETED>

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

<DELETED>SEC. 104. REDUCTIONS IN REAL ESTATE SETTLEMENT PROCEDURES ACT 
              REGULATORY BURDENS.</DELETED>

<DELETED>    (a) Unnecessary Disclosure.--Section 6(a) of the Real 
Estate Settlement Procedures Act (12 U.S.C. 2605) is amended to read as 
follows:</DELETED>
<DELETED>    ``(a) Disclosure to Applicant Relating to Assignment, 
Sale, or Transfer of Loan Servicing.--Each person who makes a federally 
related mortgage loan shall disclose to each person who applies for the 
loan, at the time of application for the loan, whether the servicing of 
the loan may be assigned, sold, or transferred to any other person at 
any time while the loan is outstanding.''.</DELETED>
<DELETED>    (b) Second Mortgages.--Section 3(1)(A) of the Real Estate 
Settlement Procedures Act (12 U.S.C. 2602(1)(A)) is amended by striking 
``or subordinate''.</DELETED>
<DELETED>    (c) Consistency of Real Estate Settlement Procedures Act 
and Truth in Lending Act Exemption of Business Loans.--Section 7 of the 
Real Estate Settlement Procedures Act (12 U.S.C. 2606) is amended--
</DELETED>
        <DELETED>    (1) by striking ``This Act'' and inserting the 
        following:</DELETED>
<DELETED>    ``(a) In General.--This Act''; and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        subsection:</DELETED>
<DELETED>    ``(b) Interpretation.--In promulgating regulations under 
section 19(a), the Board shall ensure that, with respect to subsection 
(a), the exemption for business credit includes all `business credit' 
exempted from the Truth in Lending Act, as such term is interpreted by 
the Board.''.</DELETED>

    <DELETED>PART II--CLARIFICATIONS TO REDUCE COSTS AND REGULATORY 
                           BURDENS</DELETED>

<DELETED>SEC. 111. EXEMPTION FOR CERTAIN BORROWERS.</DELETED>

<DELETED>    Section 104 of the Truth in Lending Act (15 U.S.C. 1603) 
is amended by adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(8) Credit transactions involving consumers with 
        an annual earned income of more than $200,000 or having net 
        assets in excess of $1,000,000 at the time of the 
        transaction.''.</DELETED>

<DELETED>SEC. 112. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE 
              MORTGAGES.</DELETED>

<DELETED>    (a) Open End Consumer Credit Plans.--Section 127A(a)(2)(G) 
of the Truth in Lending Act (15 U.S.C. 1637a(a)(2)(G)) is amended by 
inserting before the semicolon the following: ``, or a statement that 
the monthly payment may increase or decrease significantly due to 
increases in the annual percentage rate''.</DELETED>
<DELETED>    (b) Technical Amendment.--Section 127A(b)(3) of the Truth 
in Lending Act (15 U.S.C. 1637a(b)(3)) is amended by striking 
``required under'' and inserting ``referred to in''.</DELETED>
<DELETED>    (c) Consumer Credit Not Under Open End Credit Plan.--
Section 128(a) of the Truth in Lending Act (15 U.S.C. 1638(a)) is 
amended by adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(14) In any variable interest rate residential 
        mortgage transaction, at the option of the creditors, a 
        statement that the monthly payment may increase or decrease 
        substantially, or an historical example illustrating the 
        effects of interest rate changes implemented according to the 
        loan program.''.</DELETED>

<DELETED>SEC. 113. TREATMENT OF CERTAIN CHARGES.</DELETED>

<DELETED>    (a) Third Party Fees.--Section 106(a) of the Truth in 
Lending Act (15 U.S.C. 1605(a)) is amended by inserting after the 
second sentence the following new sentence: ``The finance charge shall 
not include fees and amounts imposed by third party closing agents 
(including settlement agents, attorneys, and escrow and title 
companies) if the creditor does not expressly require the imposition of 
the charges and does not retain the charges.''.</DELETED>
<DELETED>    (b) Taxes on Security Instruments or Evidences of 
Indebtedness.--Section 106(d) of the Truth in Lending Act (15 U.S.C. 
1605(d)) is amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(3) Any tax levied on security instruments or on 
        documents evidencing indebtedness, if the payment of such tax 
        is a precondition for recording the instrument securing the 
        evidence of indebtedness.''.</DELETED>
<DELETED>    (c) Preparation of Loan Documents.--Section 106(e)(2) of 
the Truth in Lending Act (15 U.S.C. 1605(e)(2)) is amended to read as 
follows:</DELETED>
        <DELETED>    ``(2) Fees for preparation of loan-related 
        documents and attending or conducting settlement.''.</DELETED>
<DELETED>    (d) Applicability.--The amendments made by subsections (a) 
and (b) shall apply to all extensions of credit with respect to which 
rescission rights have not been asserted as of January 4, 
1995.</DELETED>

<DELETED>SEC. 114. EXEMPTIONS FROM RESCISSION.</DELETED>

<DELETED>    (a) Certain Refinancings.--Section 125(e) of the Truth in 
Lending Act (15 U.S.C. 1635(e)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (3), by striking ``or'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (4), by striking the period at 
        the end and inserting ``; or''; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(5) a consumer credit transaction, other than a 
        mortgage referred to in section 103(aa), that--</DELETED>
                <DELETED>    ``(A) is secured by a first lien, in any 
                amount; and</DELETED>
                <DELETED>    ``(B) constitutes a refinancing or 
                consolidation of an existing extension of 
                credit.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--Section 125(e)(2) 
of the Truth in Lending Act (15 U.S.C. 1635(e)(2)) is amended by 
inserting ``, other than a transaction described in subsection 
(e)(5),'' after ``a refinancing or consolidation (with no new 
advances)''.</DELETED>

<DELETED>SEC. 115. TOLERANCES; BASIS OF DISCLOSURES.</DELETED>

<DELETED>    (a) Tolerances for Accuracy.--Section 106 of the Truth in 
Lending Act (15 U.S.C. 1605) is amended by adding at the end the 
following new subsection:</DELETED>
<DELETED>    ``(f) Tolerance for Accuracy.--In connection with any 
consumer credit transaction not under an open end credit plan that is 
secured by real property or a dwelling, the disclosure of the finance 
charge and other disclosures affected by any finance charge shall be 
treated as being accurate for purposes of this title if the amount 
disclosed as the finance charge does not vary from the actual finance 
charge by more than $100.''.</DELETED>
<DELETED>    (b) Basis of Disclosure for Per Diem Interest.--Section 
121(c) of the Truth in Lending Act (15 U.S.C. 1631(c)) is amended by 
adding at the end the following new sentence: ``In the case of any 
consumer credit transaction, a portion of the interest on which is 
determined on a per diem basis and is to be collected upon the 
consummation of such transaction, any disclosure with respect to such 
portion of interest shall be deemed to be accurate for purposes of this 
title if the disclosure is based on reasonably available information 
known to such person at the time that the disclosure documents are 
being prepared for the consummation of the transaction.''.</DELETED>

<DELETED>SEC. 116. LIMITATION ON LIABILITY.</DELETED>

<DELETED>    (a) In General.--Chapter 2 of the Truth in Lending Act (15 
U.S.C. 1631 et seq.) is amended by adding at the end the following new 
section:</DELETED>

<DELETED>``SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.</DELETED>

<DELETED>    ``(a) Limitations on Liability for Disclosures Relating to 
Certain Fees and Charges Other Than Finance Charges.--</DELETED>
        <DELETED>    ``(1) In general.--In the case of any consumer 
        credit transaction subject to this title consummated before the 
        date of enactment of the Truth in Lending Act Amendments of 
        1995, no creditor or assignee with respect to such transaction 
        shall have any civil, administrative, or criminal liability 
        under this title for, and no consumer shall have any extended 
        rescission rights under section 125(f) by reason of, the 
        treatment by the creditor, for disclosure purposes, of any--
        </DELETED>
                <DELETED>    ``(A) tax described in section 
                106(d)(3);</DELETED>
                <DELETED>    ``(B) fees and amounts described in 
                paragraph (2) or (5) of section 106(e) and third party 
                fees and amounts described in section 106(a); 
                and</DELETED>
                <DELETED>    ``(C) delivery charge imposed by a 
                creditor.</DELETED>
        <DELETED>    ``(2) Exceptions.--Subsection (a) shall not apply 
        to--</DELETED>
                <DELETED>    ``(A) any individual action or 
                counterclaim brought under this title--</DELETED>
                        <DELETED>    ``(i) that was filed before 
                        October 1, 1994; and</DELETED>
                        <DELETED>    ``(ii) the pleadings in which (as 
                        filed before such date) allege improper 
                        disclosure of charges described in subparagraph 
                        (A), (B), or (C) of paragraph (1);</DELETED>
                <DELETED>    ``(B) any class action brought under this 
                title--</DELETED>
                        <DELETED>    ``(i) for which a class was 
                        certified before October 1, 1994; and</DELETED>
                        <DELETED>    ``(ii) the pleadings in which (as 
                        filed before such date) allege improper 
                        disclosure of charges described in subparagraph 
                        (A), (B), or (C) of paragraph (1);</DELETED>
                <DELETED>    ``(C) the named individual plaintiffs in 
                any class action brought under this title--</DELETED>
                        <DELETED>    ``(i) that was filed before 
                        October 1, 1994; and</DELETED>
                        <DELETED>    ``(ii) the pleadings in which (as 
                        filed before such date) allege improper 
                        disclosure of charges described in subparagraph 
                        (A), (B), or (C) of paragraph (1); or</DELETED>
                <DELETED>    ``(D) any consumer credit transaction with 
                respect to which a timely notice of rescission was sent 
                to the creditor before October 1, 1994.</DELETED>
<DELETED>    ``(b) Exemption From Liability for Finance Charge 
Disclosures Within Tolerance Limits.--</DELETED>
        <DELETED>    ``(1) In general.--In the case of any consumer 
        credit transaction subject to this title, including a 
        transaction consummated before the date of enactment of the 
        Truth in Lending Act Amendments of 1995, no creditor or 
        assignee with respect to such transaction shall have any civil, 
        administrative, or criminal liability under this title for, and 
        no consumer shall have any extended rescission rights under 
        section 125 by reason of, any disclosure relating to the 
        finance charge imposed with respect to such transaction, if the 
        amount or percentage actually disclosed--</DELETED>
                <DELETED>    ``(A) may be treated as accurate pursuant 
                to section 106(f); or</DELETED>
                <DELETED>    ``(B) is greater than the amount or 
                percentage required to be disclosed under this 
                title.</DELETED>
        <DELETED>    ``(2) Exceptions.--Paragraph (1) shall not apply 
        to--</DELETED>
                <DELETED>    ``(A) any individual action or 
                counterclaim brought under this title that was filed 
                before October 1, 1994;</DELETED>
                <DELETED>    ``(B) any class action brought under this 
                title for which a class was certified before October 1, 
                1994;</DELETED>
                <DELETED>    ``(C) the named individual plaintiffs in 
                any class action brought under this title that was 
                filed before October 1, 1994; or</DELETED>
                <DELETED>    ``(D) any consumer credit transaction with 
                respect to which a timely notice of rescission was sent 
                to the creditor before October 1, 1994.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections for chapter 
2 of the Truth in Lending Act is amended by inserting after the item 
relating to section 138 the following new item:</DELETED>

<DELETED>``Sec. 139. Certain limitations on liability.''.

<DELETED>SEC. 117. LIMITATION ON RESCISSION PERIOD.</DELETED>

<DELETED>    Section 125(f) of the Truth in Lending Act (15 U.S.C. 
1635(f)) is amended--</DELETED>
        <DELETED>    (1) by striking ``(f) An obligor's right of 
        rescission'' and inserting the following:</DELETED>
<DELETED>    ``(f) Limitation on Rescission Period.--</DELETED>
        <DELETED>    ``(1) In general.--The right of rescission of an 
        obligor'';</DELETED>
        <DELETED>    (2) by striking ``except that if (1) any agency'' 
        and inserting the following: ``except that if--</DELETED>
                <DELETED>    ``(A) any agency'';</DELETED>
        <DELETED>    (3) by striking ``transaction, (2) such agency'' 
        and inserting the following: ``transaction;</DELETED>
                <DELETED>    ``(B) such agency'';</DELETED>
        <DELETED>    (4) by striking ``section 125, and (3) the 
        obligor's'' and inserting the following: ``this section; 
        and</DELETED>
                <DELETED>    ``(C) the obligor's''; and</DELETED>
        <DELETED>    (5) by adding at the end the following new 
        paragraphs:</DELETED>
        <DELETED>    ``(2) Actions affected.--Except as otherwise 
        provided in paragraph (1), the expiration of the right of 
        rescission pursuant to this subsection shall be absolute and no 
        consumer may assert rescission, affirmatively or as a defense, 
        in any action brought under this title in any State or Federal 
        court after the earlier of--</DELETED>
                <DELETED>    ``(A) the expiration of the 3-year period 
                beginning on the date on which the transaction is 
                consummated; or</DELETED>
                <DELETED>    ``(B) the date of the sale of the property 
                securing the loan or other extension of 
                credit.</DELETED>
        <DELETED>    ``(3) Preemption of state law.--This subsection 
        shall supersede any State law that is inconsistent with any 
        provision of this subsection.''.</DELETED>

<DELETED>SEC. 118. ASSIGNEE LIABILITY.</DELETED>

<DELETED>    (a) Violations Apparent on the Face of Transaction 
Documents.--Section 131(a) of the Truth in Lending Act (15 U.S.C. 
1641(a)) is amended to read as follows:</DELETED>
<DELETED>    ``(a) Liability of Assignee for Apparent Violations.--
</DELETED>
        <DELETED>    ``(1) In general.--Except as otherwise 
        specifically provided in this title, any civil action against a 
        creditor for a violation of this title, and any proceeding 
        under section 108 against a creditor, with respect to a 
        consumer credit transaction may be maintained against any 
        assignee of such creditor only if--</DELETED>
                <DELETED>    ``(A) the violation for which such action 
                or proceeding is brought is apparent on the face of the 
                disclosure statement provided in connection with such 
                transaction pursuant to this title; and</DELETED>
                <DELETED>    ``(B) the assignment to the assignee was 
                voluntary.</DELETED>
        <DELETED>    ``(2) Violation apparent on the face of the 
        disclosure described.--For purposes of this section, a 
        violation is apparent on the face of the disclosure statement 
        if--</DELETED>
                <DELETED>    ``(A) the disclosure can be determined to 
                be incomplete or inaccurate from the face of the 
                disclosure statement; or</DELETED>
                <DELETED>    ``(B) the disclosure does not use the 
                terms or format required to be used by this 
                title.''.</DELETED>
<DELETED>    (b) Servicer Not Treated as Assignee.--Section 131 of the 
Truth in Lending Act (15 U.S.C. 1641) is amended by adding at the end 
the following new subsection:</DELETED>
<DELETED>    ``(d) Treatment of Servicer.--</DELETED>
        <DELETED>    ``(1) In general.--A servicer of a consumer 
        obligation arising from a consumer credit transaction shall not 
        be treated as an assignee of such obligation for purposes of 
        this section unless the servicer is the owner of the 
        obligation.</DELETED>
        <DELETED>    ``(2) Servicer not treated as owner on basis of 
        assignment for administrative convenience.--A servicer of a 
        consumer obligation arising from a consumer credit transaction 
        shall not be treated as the owner of the obligation for 
        purposes of this section on the basis of an assignment of the 
        obligation from the creditor or another assignee to the 
        servicer solely for the administrative convenience of the 
        servicer in servicing the obligation.</DELETED>
        <DELETED>    ``(3) Servicer defined.--For purposes of this 
        subsection, the term `servicer' has the same meaning as in 
        section 6(i)(2) of the Real Estate Settlement Procedures Act of 
        1974.''.</DELETED>

<DELETED>SEC. 119. MODIFICATION OF WAIVER OF RIGHT OF 
              RESCISSION.</DELETED>

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

<DELETED>SEC. 120. APPLICABILITY.</DELETED>

<DELETED>    Except as provided in section 113(d), the amendments made 
by this part shall apply to all consumer credit transactions 
consummated on or after the date of enactment of this Act.</DELETED>

 <DELETED>Subtitle B--Amendments to the Community Reinvestment Act of 
                             1977</DELETED>

<DELETED>SEC. 131. EXPRESSION OF CONGRESSIONAL INTENTION.</DELETED>

<DELETED>    Section 802(b) of the Community Reinvestment Act of 1977 
(12 U.S.C. 2901(b)) is amended to read as follows:</DELETED>
<DELETED>    ``(b) It is the purpose of this title to require each 
appropriate Federal financial supervisory agency to use the authority 
of such agency, in examining financial institutions, to encourage such 
institutions to help meet the credit needs of the local communities in 
which they are chartered, consistent with the safe and sound operation 
of such institutions. In examining financial institutions under this 
title, a supervisory agency shall not impose any recordkeeping or 
reporting requirements that do not have the effect of eliminating, 
streamlining, or reducing regulatory burdens upon such 
institutions.''.</DELETED>

<DELETED>SEC. 132. SMALL BANK EXEMPTION.</DELETED>

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

<DELETED>``SEC. 809. EXEMPT INSTITUTIONS.</DELETED>

<DELETED>    ``This title does not apply to a regulated financial 
institution for a calendar year if, as of the close of the immediately 
preceding calendar year, the total assets of the institution were not 
more than $250,000,000.''.</DELETED>

<DELETED>SEC. 133. COMMUNITY INPUT AND CONCLUSIVE RATING.</DELETED>

<DELETED>    (a) Community Input and Conclusive Rating.--The Community 
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended by 
inserting after section 806 the following new section:</DELETED>

<DELETED>``SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.</DELETED>

<DELETED>    ``(a) Publication of Examination Schedule and Opportunity 
for Comment.--</DELETED>
        <DELETED>    ``(1) Publication of list; public comments.--
        Thirty days prior to the beginning of each calendar quarter, 
        each appropriate Federal financial supervisory agency shall--
        </DELETED>
                <DELETED>    ``(A) publish in the Federal Register a 
                list of institutions scheduled for examination pursuant 
                to this title during that calendar quarter; 
                and</DELETED>
                <DELETED>    ``(B) provide an opportunity for comments 
                from the community on the performance, under this 
                title, of each institution scheduled for 
                examination.</DELETED>
        <DELETED>    ``(2) Receipt of comments.--Any comments submitted 
        under paragraph (1) shall be received by the appropriate 
        Federal financial supervisory agency not later than 30 days 
        after the commencement of the relevant calendar 
        quarter.</DELETED>
<DELETED>    ``(b) Reconsideration of Rating.--</DELETED>
        <DELETED>    ``(1) In general.--Upon the filing of a request in 
        accordance with this subsection, the rating of an institution 
        made available to the public in accordance with section 
        807(b)(1)(C) may be reconsidered by the appropriate Federal 
        financial supervisory agency.</DELETED>
        <DELETED>    ``(2) Specific requirements.--Each request under 
        paragraph (1)--</DELETED>
                <DELETED>    ``(A) shall be made in writing;</DELETED>
                <DELETED>    ``(B) shall be filed with the appropriate 
                Federal financial supervisory agency not later than 30 
                days after the date on which the rating of the 
                institution is made available to the public in 
                accordance with section 807(b)(1)(C);</DELETED>
                <DELETED>    ``(C) may be filed by the institution or 
                by a member of the community; and</DELETED>
                <DELETED>    ``(D) shall be based on significant issues 
                of a substantive nature that are relevant to the 
                delineated community of the institution and, in the 
                case of a request made by a member of the community, 
                shall be limited to issues previously raised in 
                comments submitted pursuant to subsection 
                (a).</DELETED>
        <DELETED>    ``(3) Completion of requested reconsideration.--
        Not later than 30 days after receiving a request for 
        reconsideration filed in accordance with this subsection, the 
        appropriate Federal financial supervisory agency shall complete 
        the requested reconsideration.</DELETED>
<DELETED>    ``(c) Conclusive Rating.--</DELETED>
        <DELETED>    ``(1) In general.--The rating of an institution 
        under section 807(b)(1)(C) shall become conclusive on the later 
        of--</DELETED>
                <DELETED>    ``(A) 30 days after the date on which the 
                rating is made available to the public under that 
                section; or</DELETED>
                <DELETED>    ``(B) the completion of any requested 
                reconsideration by the appropriate Federal financial 
                supervisory agency in accordance with subsection 
                (b).</DELETED>
        <DELETED>    ``(2) Effect.--The rating of an institution shall 
        be the conclusive assessment of the record of the institution 
        in meeting the credit needs of the community of the institution 
        for purposes of section 804 until the next rating of the 
        institution, developed pursuant to an examination, becomes 
        conclusive. Each institution that receives a `satisfactory' or 
        `outstanding' rating shall be deemed to have met the purposes 
        of section 804. Notwithstanding any other provision of law, 
        nothing in this subsection shall be construed to grant a cause 
        of action to any person.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 804(a) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903(a)) is amended by inserting 
``conducted in accordance with section 806A,'' after ``financial 
institution,''.</DELETED>

<DELETED>SEC. 134. SPECIAL PURPOSE BANKS.</DELETED>

<DELETED>    (a) Definition.--Section 803 of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2902) is amended--</DELETED>
        <DELETED>    (1) by redesignating the first paragraph 
        designated as paragraph (2) as subparagraph (D) and indenting 
        accordingly;</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (3) in paragraph (3), by striking the period at 
        the end and inserting a semicolon;</DELETED>
        <DELETED>    (4) in paragraph (4)--</DELETED>
                <DELETED>    (A) by striking ``A financial'' and 
                inserting ``a financial''; and</DELETED>
                <DELETED>    (B) by striking the period at the end and 
                inserting ``; and''; and</DELETED>
        <DELETED>    (5) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(5) the term `special purpose bank' means a bank 
        that does not generally accept deposits from the public in 
        amounts that are less than $100,000, such as a credit card bank 
        or a trust bank.''.</DELETED>
<DELETED>    (b) Assessment of Record of Meeting Community Credit 
Needs.--Section 804 of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903) is amended--</DELETED>
        <DELETED>    (1) by striking the section designation and all 
        that follows through ``In connection with'' and inserting the 
        following:</DELETED>

<DELETED>``SEC. 804. ASSESSMENT OF RECORD OF MEETING COMMUNITY CREDIT 
              NEEDS.</DELETED>

<DELETED>    ``(a) In General.--In connection with''; and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        subsection:</DELETED>
<DELETED>    ``(c) Special Purpose Banks.--In conducting assessments 
under subsection (a) at special purpose banks, each appropriate Federal 
financial supervisory agency shall--</DELETED>
        <DELETED>    ``(1) take into consideration the nature of the 
        businesses in which such banks are involved; and</DELETED>
        <DELETED>    ``(2) develop standards under which such banks may 
        be deemed to have complied with the requirements of this title 
        that are consistent with the specific nature of such 
        businesses.''.</DELETED>

<DELETED>SEC. 135. INCREASED INCENTIVES TO LENDING TO LOW- AND 
              MODERATE-INCOME COMMUNITIES.</DELETED>

<DELETED>    Section 804 of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903) is amended by adding at the end the following new 
subsection:</DELETED>
<DELETED>    ``(d) Lending to Low- and Moderate-Income Communities.--In 
assessing and taking into account the record of a financial institution 
under subsection (a), the appropriate Federal financial supervisory 
agency shall give positive consideration to any investments in and 
loans to joint ventures or entities or projects that provide benefits 
to distressed communities (as such term is defined by the appropriate 
Federal financial supervisory agency) made by the institution, 
regardless of whether or not the communities are located within the 
service area of the financial institution.''.</DELETED>

         <DELETED>Subtitle C--Payment of Interest Act</DELETED>

<DELETED>SEC. 141. PAYMENT OF INTEREST ACT.</DELETED>

<DELETED>    Subtitle F of title II of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4301 et seq.) is amended 
to read as follows:</DELETED>

        <DELETED>``Subtitle F--Payment of Interest Act</DELETED>

<DELETED>``SEC. 261. SHORT TITLE.</DELETED>

<DELETED>    ``This subtitle may be cited as the `Payment of Interest 
Act'.</DELETED>

<DELETED>``SEC. 262. FINDINGS AND PURPOSE.</DELETED>

<DELETED>    ``(a) Findings.--The Congress finds that the Truth in 
Savings Act created unnecessary paperwork, administrative and 
compliance burdens, and liability for depository institutions without 
enhancing the ability of consumers to make informed decisions regarding 
deposit accounts.</DELETED>
<DELETED>    ``(b) Purpose.--It is the purpose of this subtitle--
</DELETED>
        <DELETED>    ``(1) to repeal the unnecessary disclosure 
        requirements of the Truth in Savings Act; and</DELETED>
        <DELETED>    ``(2) to retain the provisions of the Truth in 
        Savings Act that require that interest be paid on the full 
        amount of the principal in the account for each day of the 
        stated calculation period at the rate or rates of interest 
        disclosed.</DELETED>

<DELETED>``SEC. 263. PAYMENT OF INTEREST.</DELETED>

<DELETED>    ``(a) Calculated on Full Amount of Principal.--Interest on 
an interest-bearing account at any depository institution shall be 
calculated by the institution on the full amount of principal in the 
account for each day of the stated calculation period at the rate or 
rates of interest disclosed by the depository institution.</DELETED>
<DELETED>    ``(b) No Particular Method of Compounding Interest 
Required.--Subsection (a) shall not be construed to prohibit or require 
the use of any particular method of compounding or crediting of 
interest.</DELETED>
<DELETED>    ``(c) Date by Which Interest Shall Accrue.--Interest on 
accounts that are subject to this subtitle shall begin to accrue not 
later than the business day specified for interest-bearing accounts in 
section 606 of the Expedited Funds Availability Act, subject to 
subsections (b) and (c) of that section.</DELETED>

<DELETED>``SEC. 264. REGULATIONS.</DELETED>

<DELETED>    ``(a) In General.--</DELETED>
        <DELETED>    ``(1) By the board.--The Board, after consultation 
        with each agency referred to in section 265(a) and public 
        notice and opportunity for comment, shall promulgate 
        regulations to carry out this subtitle.</DELETED>
        <DELETED>    ``(2) Applicability.--This subtitle does not apply 
        with respect to any depository institution before the effective 
        date of regulations promulgated by the Board under paragraph 
        (1).</DELETED>

<DELETED>``SEC. 265. ADMINISTRATIVE ENFORCEMENT.</DELETED>

<DELETED>    ``(a) In General.--Compliance with the requirements 
imposed under this subtitle shall be enforced under--</DELETED>
        <DELETED>    ``(1) section 8 of the Federal Deposit Insurance 
        Act--</DELETED>
                <DELETED>    ``(A) by the appropriate Federal banking 
                agency with respect to any insured depository 
                institution;</DELETED>
                <DELETED>    ``(B) by the Federal Deposit Insurance 
                Corporation with respect to any depository institution 
                described in clause (i), (ii), or (iii) of section 
                19(b)(1)(A) of the Federal Reserve Act that is not an 
                insured depository institution; and</DELETED>
                <DELETED>    ``(C) by the Director of the Office of 
                Thrift Supervision with respect to any depository 
                institution described in clause (v) and or (vi) of 
                section 19(b)(1)(A) of the Federal Reserve Act that is 
                not an insured depository institution; and</DELETED>
        <DELETED>    ``(2) the Federal Credit Union Act, by the 
        National Credit Union Administration Board with respect to any 
        depository institution described in section 19(b)(1)(A)(iv) of 
        the Federal Reserve Act.</DELETED>
<DELETED>    ``(b) Additional Enforcement Powers.--</DELETED>
        <DELETED>    ``(1) Violations.--For purposes of the exercise by 
        any agency referred to in subsection (a) of the powers of such 
        agency under any Act referred to in such subsection, a 
        violation of a requirement imposed under this title shall be 
        deemed to be a violation of a requirement imposed under that 
        Act.</DELETED>
        <DELETED>    ``(2) Powers.--In addition to the powers of any 
        agency referred to in subsection (a) under any provision of law 
        specifically referred to in such subsection, each such agency 
        may exercise, for purposes of enforcing compliance with any 
        requirement imposed under this subtitle, any other authority 
        conferred on such agency by law.</DELETED>
        <DELETED>    ``(3) Regulations by agencies other than the 
        board.--The authority of the Board to promulgate regulations 
        under this subtitle does not impair the authority of any other 
        agency referred to in subsection (a) to make rules regarding 
        the procedures of the Board in enforcing compliance with the 
        requirements imposed under this subtitle.</DELETED>

<DELETED>``SEC. 266. CIVIL LIABILITY.</DELETED>

<DELETED>    ``(a) Civil Liability.--Except as otherwise provided in 
this section, any depository institution that fails to comply with any 
requirement imposed under this subtitle or any regulation promulgated 
under this subtitle with respect to any person who is an account holder 
at that institution shall be liable to such person in an amount equal 
to the sum of--</DELETED>
        <DELETED>    ``(1) any actual damage sustained by such person 
        as a result of the failure;</DELETED>
        <DELETED>    ``(2) such additional amount as the court may 
        allow, except that liability under this subparagraph shall not 
        be less than $100 nor greater than $1,000; and</DELETED>
        <DELETED>    ``(3) in the case of any successful action to 
        enforce any liability under paragraph (1), the costs of the 
        action, together with a reasonable attorney's fee, as 
        determined by the court.</DELETED>
<DELETED>    ``(b) Bona Fide Errors.--</DELETED>
        <DELETED>    ``(1) In general.--A depository institution may 
        not be held liable in any action brought under this section for 
        a violation of this subtitle if the depository institution 
        demonstrates by a preponderance of the evidence that the 
        violation was not intentional and resulted from a bona fide 
        error, notwithstanding the maintenance of procedures reasonably 
        adopted to avoid any such error.</DELETED>
        <DELETED>    ``(2) Examples.--For purposes of paragraph (1), 
        examples of a bona fide error include clerical, calculation, 
        computer malfunction and programming, and printing errors, 
        except that an error of legal judgment with respect to an 
        obligation of a depository institution under this subtitle is 
        not a bona fide error.</DELETED>
<DELETED>    ``(c) Jurisdiction.--Any action under this section may be 
brought in any United States district court, or in any other court of 
competent jurisdiction, not later than 1 year after the date of the 
occurrence of the violation involved.</DELETED>
<DELETED>    ``(d) Reliance on Board Rulings.--No provision of this 
section imposing any liability shall apply to any act done or omitted 
in good faith in conformity with any regulation or order, or any 
interpretation of any regulation or order, of the Board, or in 
conformity with any interpretation or approval by an official or 
employee of the Board duly authorized by the Board to issue such 
interpretation or approval under procedures prescribed by the Board, 
notwithstanding the fact that after such act or omission has occurred, 
such regulation, order, interpretation, or approval is amended, 
rescinded, or determined by judicial or other authority to be invalid 
for any reason.</DELETED>
<DELETED>    ``(e) Notification of and Adjustment for Errors.--A 
depository institution shall not be liable under this section or 
section 265 for any failure to comply with any requirement imposed 
under this subtitle with respect to any account if--</DELETED>
        <DELETED>    ``(1) the depository institution notifies the 
        affected account holder of the failure of such institution to 
        comply with such requirement before--</DELETED>
                <DELETED>    ``(A) the expiration of the 60-day period 
                beginning on the date on which the depository 
                institution discovered the failure to comply;</DELETED>
                <DELETED>    ``(B) any action is instituted against the 
                depository institution by the account holder under this 
                section with respect to such failure to comply; 
                and</DELETED>
                <DELETED>    ``(C) any written notice of such failure 
                to comply is received by the depository institution 
                from the account holder; and</DELETED>
        <DELETED>    ``(2) the depository institution makes such 
        adjustments as may be necessary with respect to the account to 
        ensure that interest is paid on the full amount of principal in 
        the account for each day of the stated calculation period at 
        the rate or rates of interest disclosed by the depository 
        institution.</DELETED>
<DELETED>    ``(f) Multiple Interest in 1 Account.--If more than 1 
person holds an interest in any account--</DELETED>
        <DELETED>    ``(1) the minimum and maximum amounts of liability 
        under subsection (a)(2) for any failure to comply with the 
        requirements of this subtitle shall apply with respect to such 
        account; and</DELETED>
        <DELETED>    ``(2) the court shall determine the manner in 
        which the amount shall be distributed among such 
        persons.</DELETED>
<DELETED>    ``(g) Continuing Failure To Comply.--</DELETED>
        <DELETED>    ``(1) Single violation.--Except as provided in 
        paragraph (2), the continuing failure of any depository 
        institution to pay interest in accordance with section 263 with 
        respect to a particular account shall be treated as a single 
        violation for purposes of determining the amount of any 
        liability of such institution under subsection (a) for such 
        failure to disclose.</DELETED>
        <DELETED>    ``(2) Subsequent violation.--The continuing 
        failure of any depository institution to pay interest in 
        accordance with section 263 with respect to a particular 
        account after judgment is rendered in favor of the account 
        holder in connection with a prior failure to pay interest in 
        accordance with section 263 with respect to such account shall 
        be treated as a subsequent violation for purposes of 
        determining liability under subsection (a).</DELETED>
        <DELETED>    ``(3) Effect on enforcement power.--This 
        subsection does not limit or otherwise affect the enforcement 
        power under section 265 of any agency referred to in section 
        265(a).</DELETED>

<DELETED>``SEC. 267. DEFINITIONS.</DELETED>

<DELETED>    ``For purposes of this subtitle, the following definitions 
shall apply:</DELETED>
        <DELETED>    ``(1) Account.--The term `account' means any 
        account intended for use by and generally used by a consumer 
        primarily for personal, family, or household purposes that is 
        offered by a depository institution into which a customer 
        deposits funds, including demand accounts, time accounts, 
        negotiable order of withdrawal accounts, and share draft 
        accounts.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Depository institution.--The term 
        `depository institution' has the same meaning as in clauses (i) 
        through (vi) of section 19(b)(1)(A) of the Federal Reserve 
        Act.</DELETED>
        <DELETED>    ``(4) Insured depository institution.--The term 
        `insured depository institution' has the same meaning as in 
        section 3 of the Federal Deposit Insurance Act.</DELETED>
        <DELETED>    ``(5) Interest.--The term `interest' includes 
        dividends paid with respect to share draft accounts that are 
        accounts within the meaning of paragraph (1).''.</DELETED>

    <DELETED>TITLE II--STREAMLINING GOVERNMENT REGULATION</DELETED>

 <DELETED>Subtitle A--Eliminating Unnecessary Regulatory Requirements 
                        and Procedures</DELETED>

<DELETED>SEC. 201. STREAMLINING OF PRIOR APPROVAL REQUIREMENT FOR 
              CERTAIN ACQUISITIONS.</DELETED>

<DELETED>    (a) Bank Holding Company Act of 1956 Amendments.--Section 
3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842) is amended 
by adding at the end the following new subsections:</DELETED>
<DELETED>    ``(h) No Approval Required for Certain Transactions.--
Notwithstanding paragraph (3) or (5) of subsection (a), an acquisition 
of shares by a registered bank holding company, or a merger or 
consolidation between registered bank holding companies, shall be 
deemed to be approved at the conclusion of the period specified in 
paragraph (7) if each of the following criteria is met:</DELETED>
        <DELETED>    ``(1) Financial and managerial criteria.--
        </DELETED>
                <DELETED>    ``(A) Well capitalized bank holding 
                company.--Both at the time of and immediately after the 
                proposed transaction, the acquiring bank holding 
                company is well capitalized.</DELETED>
                <DELETED>    ``(B) Well capitalized lead insured 
                depository institution.--Both at the time of and 
                immediately after the proposed transaction, the lead 
                insured depository institution of the acquiring bank 
                holding company is well capitalized.</DELETED>
                <DELETED>    ``(C) Capital of other insured depository 
                institutions.--At the time of the transaction, well 
                capitalized insured depository institutions control not 
                less than 80 percent of the aggregate total risk-
                weighted assets of all insured depository institutions 
                controlled by the acquiring bank holding 
                company.</DELETED>
                <DELETED>    ``(D) No undercapitalized insured 
                depository institutions.--At the time of the 
                transaction, no insured depository institution 
                controlled by the acquiring bank holding company is 
                undercapitalized.</DELETED>
                <DELETED>    ``(E) Well managed.--</DELETED>
                        <DELETED>    ``(i) In general.--At the time of 
                        the transaction, the acquiring bank holding 
                        company, the lead insured depository 
                        institution of that bank holding company, and 
                        insured depository institutions that control 
                        not less than 90 percent of the aggregate total 
                        risk-weighted assets of all insured depository 
                        institutions controlled by that bank holding 
                        company are well managed.</DELETED>
                        <DELETED>    ``(ii) No poorly managed 
                        institutions.--</DELETED>
                                <DELETED>    ``(I) In general.--No 
                                insured depository institution 
                                controlled by the acquiring bank 
                                holding company has 1 of the lowest 2 
                                CAMEL composite ratings under the 
                                Uniform Financial Institutions Rating 
                                System (or an equivalent rating under a 
                                comparable rating system) as of the 
                                most recent examination or most recent 
                                review of the institution by the 
                                appropriate Federal banking 
                                agency.</DELETED>
                                <DELETED>    ``(II) Recently acquired 
                                institutions.--Subclause (I) does not 
                                apply to an insured depository 
                                institution acquired by the acquiring 
                                bank holding company during the 12-
                                month period preceding the date of the 
                                proposed transaction, if--</DELETED>
                                        <DELETED>    ``(aa) the bank 
                                        holding company has developed a 
                                        plan acceptable to the 
                                        appropriate Federal banking 
                                        agency for the institution to 
                                        restore the capital and 
                                        management of the institution; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) all such 
                                        insured depository institutions 
                                        represent, in the aggregate, 
                                        less than 10 percent of the 
                                        aggregate total risk-weighted 
                                        assets of all of the insured 
                                        depository institutions 
                                        controlled by the bank holding 
                                        company.</DELETED>
                        <DELETED>    ``(iii) Adjustment of amounts.--
                        The Board may, by regulation, adjust the 
                        amounts and the manner in which the percentage 
                        of insured depository institutions is 
                        calculated under clauses (i) and (ii)(II)(bb) 
                        if the Board determines that such adjustment is 
                        consistent with the principles of safety and 
                        soundness and the purposes of this 
                        Act.</DELETED>
        <DELETED>    ``(2) No unsatisfactory cra ratings.--</DELETED>
                <DELETED>    ``(A) In general.--No insured depository 
                institution controlled by the acquiring bank holding 
                company has a `needs to improve' or `substantial 
                noncompliance' composite rating as of the most recent 
                examination of such institution under the Community 
                Reinvestment Act of 1977.</DELETED>
                <DELETED>    ``(B) Recently acquired institutions.--An 
                insured depository institution acquired by the 
                acquiring bank holding company during the 12-month 
                period preceding the proposed transaction may be 
                excluded for purposes of subparagraph (A) if the bank 
                holding company has developed a plan acceptable to the 
                appropriate Federal banking agency to restore the 
                performance of the institution to at least a 
                `satisfactory' composite rating under the Community 
                Reinvestment Act of 1977.</DELETED>
        <DELETED>    ``(3) Competitive criteria.--The consummation of 
        the proposal complies with guidelines established by the Board, 
        by regulation, after consultation with the Attorney General of 
        the United States, that identify proposals that are not likely 
        to have a significantly adverse effect on competition in any 
        relevant financial services market.</DELETED>
        <DELETED>    ``(4) Size of acquisition.--</DELETED>
                <DELETED>    ``(A) Limitations.--</DELETED>
                        <DELETED>    ``(i) Asset size.--The book value 
                        of the total assets acquired does not exceed 10 
                        percent of the consolidated total risk-weighted 
                        assets of the acquiring bank holding 
                        company.</DELETED>
                        <DELETED>    ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.</DELETED>
                <DELETED>    ``(B) Adjustment to limitations.--The 
                Board may, by regulation, adjust the limitations 
                established in this paragraph in a manner consistent 
                with the principles of safety and soundness and the 
                purposes of this Act.</DELETED>
        <DELETED>    ``(5) Interstate acquisitions.--Approval by the 
        Board of the transaction is not prohibited under subsection 
        (d).</DELETED>
        <DELETED>    ``(6) Other considerations.--Approval by the Board 
        of the transaction is not prohibited under subsection 
        (c)(3).</DELETED>
        <DELETED>    ``(7) Notification.--The acquiring bank holding 
        company provides written notice to the Board of the 
        transaction, including a description of the terms of the 
        transaction, not later than 15 business days (or such shorter 
        period as established by the Board) prior to consummation of 
        the transaction, and, prior to the conclusion of that period, 
        the Board has not required an application under subsection 
        (a).</DELETED>
<DELETED>    ``(i) Definitions.--For purposes of subsection (h), the 
following definitions shall apply:</DELETED>
        <DELETED>    ``(1) Appropriate federal banking agency.--The 
        term `appropriate Federal banking agency' has the same meaning 
        as in section 38(b) of the Federal Deposit Insurance 
        Act.</DELETED>
        <DELETED>    ``(2) Capital terms.--</DELETED>
                <DELETED>    ``(A) Insured depository institution.--
                With respect to an insured depository institution, the 
                terms `well capitalized', `adequately capitalized', and 
                `undercapitalized' have the same meanings as in section 
                38(b) of the Federal Deposit Insurance Act.</DELETED>
                <DELETED>    ``(B) Bank holding company.--</DELETED>
                        <DELETED>    ``(i) Adequately capitalized.--A 
                        bank holding company is `adequately 
                        capitalized' if the company meets the required 
                        minimum level for each relevant capital measure 
                        established by the Board for bank holding 
                        companies.</DELETED>
                        <DELETED>    ``(ii) Well capitalized.--A bank 
                        holding company is `well capitalized' if the 
                        company meets the required capital levels for 
                        well capitalized bank holding companies 
                        established by the Board.</DELETED>
                <DELETED>    ``(C) Other capital terms.--The terms 
                `Tier 1' and `risk-weighted assets' have the same 
                meanings as in the capital guidelines or regulations 
                established by the Board for bank holding 
                companies.</DELETED>
        <DELETED>    ``(3) Insured depository institution.--The term 
        `insured depository institution' includes any branch or agency 
        operated in the United States by a foreign bank, as those terms 
        are defined in section 1(b)(7) of the International Banking Act 
        of 1978.</DELETED>
        <DELETED>    ``(4) Lead insured depository institution.--The 
        term `lead insured depository institution' of a bank holding 
        company means the largest insured depository institution 
        controlled by the bank holding company, based on a comparison 
        of the average total risk-weighted assets of each insured 
        depository institution controlled by that bank holding company 
        during the most recent fiscal year of that bank holding 
        company.</DELETED>
        <DELETED>    ``(5) Well managed.--A bank holding company or 
        depository institution is `well managed' if, as of the most 
        recent examination or most recent review of the company or 
        institution by the appropriate Federal banking agency, the 
        company or institution has--</DELETED>
                <DELETED>    ``(A) a CAMEL composite rating of 1 or 2 
                under the Uniform Financial Institutions Rating System 
                (or an equivalent rating under a comparable rating 
                system); and</DELETED>
                <DELETED>    ``(B) at least a `satisfactory' rating for 
                management.''.</DELETED>

<DELETED>SEC. 202. ELIMINATION OF CERTAIN FILING AND APPROVAL 
              REQUIREMENTS FOR CERTAIN INSURED DEPOSITORY 
              INSTITUTIONS.</DELETED>

<DELETED>    Section 18(c) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(c)) is amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(12) Exceptions.--No prior approval is required 
        under paragraph (2) for any merger, consolidation, acquisition 
        of assets, or assumption of liabilities involving only insured 
        depository institutions that are subsidiaries of the same 
        depository institution holding company if--</DELETED>
                <DELETED>    ``(A) the responsible agency would not be 
                prohibited from approving the transaction under section 
                44;</DELETED>
                <DELETED>    ``(B) the acquiring, assuming, or 
                resulting institution complies with all applicable 
                provisions of section 44 as if the merger, 
                consolidation, or acquisition were approved under this 
                subsection; and</DELETED>
                <DELETED>    ``(C) the acquiring, assuming, or 
                resulting institution provides written notification of 
                the transaction to the appropriate Federal banking 
                agency for the institution not later than 10 days prior 
                to consummation of the transaction.''.</DELETED>

<DELETED>SEC. 203. ELIMINATION OF REDUNDANT APPROVAL REQUIREMENT FOR 
              OAKAR TRANSACTIONS.</DELETED>

<DELETED>    Section 5(d)(3) of the Federal Deposit Insurance Act (12 
U.S.C. 1815(d)(3)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking ``with the 
        prior written approval of the responsible agency under section 
        18(c)(2)'';</DELETED>
        <DELETED>    (2) by striking subparagraph (E) and inserting the 
        following:</DELETED>
                <DELETED>    ``(E) Conditions for approval, 
                generally.--A transaction is not authorized under this 
                paragraph unless the acquiring, assuming, or resulting 
                depository institution will meet all applicable capital 
                requirements upon consummation of the transaction.''; 
                and</DELETED>
        <DELETED>    (3) by striking subparagraph (G) and redesignating 
        subparagraphs (H) through (J) as subparagraphs (G) through (I), 
        respectively.</DELETED>

<DELETED>SEC. 204. ELIMINATION OF UNNECESSARY BRANCH 
              APPLICATIONS.</DELETED>

<DELETED>    (a) National Bank Branch Applications.--Section 5155(i) of 
the Revised Statutes (12 U.S.C. 36(i)) is amended--</DELETED>
        <DELETED>    (1) by striking ``No branch'' and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) Approval required.--Except as provided in 
        paragraph (2), no branch''; and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        paragraphs:</DELETED>
        <DELETED>    ``(2) No approval required for certain branches.--
        Notwithstanding paragraph (1) of this subsection, subsection 
        (b), or subsection (c), the consent and approval of the 
        Comptroller of the Currency shall not be required for a 
        national banking association to establish and operate, or to 
        retain and operate, a branch or seasonal agency if--</DELETED>
                <DELETED>    ``(A) the association is well capitalized, 
                as such term is defined in section 38(b) of the Federal 
                Deposit Insurance Act and rules adopted by the 
                Comptroller of the Currency thereunder;</DELETED>
                <DELETED>    ``(B) the association has a CAMEL 
                composite rating of 1 or 2 under the Uniform Financial 
                Institutions Rating System (or an equivalent rating 
                under a comparable rating system) as of the most recent 
                examination of such association;</DELETED>
                <DELETED>    ``(C) the association does not have a 
                `needs to improve' or `substantial noncompliance' 
                composite rating as of the most recent examination of 
                the association under the Community Reinvestment Act of 
                1977; and</DELETED>
                <DELETED>    ``(D) the Comptroller of the Currency is 
                otherwise authorized to grant approval under this 
                section for such action at the proposed 
                location.</DELETED>
        <DELETED>    ``(3) Establishment by national banking 
        association.--A branch or seasonal agency established by a 
        national banking association under paragraph (2) shall be 
        deemed to have been established and operated pursuant to an 
        application approved under this section.''.</DELETED>
<DELETED>    (b) State Member Bank Branch Applications.--The third 
undesignated paragraph of section 9 of the Federal Reserve Act (12 
U.S.C. 321) is amended by adding at the end the following: 
``Notwithstanding the 2 preceding sentences, the approval of the Board 
shall not be required for a State member bank to establish and operate 
a branch or seasonal agency if--</DELETED>
        <DELETED>    ``(1) the State member bank is well capitalized, 
        as such term is defined in section 38(b) of the Federal Deposit 
        Insurance Act and rules adopted by the Board 
        thereunder;</DELETED>
        <DELETED>    ``(2) the State member bank has a CAMEL composite 
        rating of 1 or 2 under the Uniform Financial Institutions 
        Rating System (or an equivalent rating under a comparable 
        rating system) as of the most recent examination of such State 
        member bank;</DELETED>
        <DELETED>    ``(3) the State member bank does not have a `needs 
        to improve' or `substantial noncompliance' composite rating as 
        of the most recent examination of the member bank under the 
        Community Reinvestment Act of 1977; and</DELETED>
        <DELETED>    ``(4) the Board is authorized to grant approval 
        under this section to such State member bank to establish and 
        operate a branch or seasonal agency at the proposed 
        location.</DELETED>
<DELETED>A branch or seasonal agency established by a State member bank 
under the preceding sentence shall be deemed to have been established 
and operated pursuant to an application approved under this 
section.''.</DELETED>
<DELETED>    (c) State Nonmember Bank Branch Applications.--Section 
18(d) of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is 
amended by adding at the end the following new paragraphs:</DELETED>
        <DELETED>    ``(5) Application exemption for certain banks.--
        Notwithstanding paragraph (1), the consent of the Corporation 
        shall not be required for a State nonmember insured bank to 
        establish and operate any domestic branch if--</DELETED>
                <DELETED>    ``(A) the bank is well capitalized, as 
                such term is defined in section 38(b) and rules adopted 
                by the Corporation thereunder;</DELETED>
                <DELETED>    ``(B) the bank has a CAMEL composite 
                rating of 1 or 2 under the Uniform Financial 
                Institutions Rating System (or an equivalent rating 
                under a comparable rating system) as of the most recent 
                examination of such bank;</DELETED>
                <DELETED>    ``(C) the bank does not have a `needs to 
                improve' or `substantial noncompliance' composite 
                rating as of the most recent examination of such bank 
                under the Community Reinvestment Act of 1977; 
                and</DELETED>
                <DELETED>    ``(D) the Corporation is authorized to 
                give consent under this section to such bank to 
                establish and operate a domestic branch at the proposed 
                location.</DELETED>
        <DELETED>    ``(6) Approval granted.--A branch established by a 
        State member bank under paragraph (5) shall be deemed to have 
        been established and operated pursuant to an application 
        approved under this section.''.</DELETED>

<DELETED>SEC. 205. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED UPON 
              BANK HOLDING COMPANIES UNDER THE HOME OWNERS' LOAN 
              ACT.</DELETED>

<DELETED>    (a) Exemption for Bank Holding Companies.--Section 10 of 
the Home Owners' Loan Act (12 U.S.C. 1467a) is amended by adding at the 
end the following new subsection:</DELETED>
<DELETED>    ``(t) Exemption for Bank Holding Companies.--This section 
does not apply to a bank holding company that is subject to the Bank 
Holding Company Act of 1956, or any company controlled by such bank 
holding company.''.</DELETED>
<DELETED>    (b) Definition.--Section 10(a)(1)(D) of the Home Owners' 
Loan Act (12 U.S.C. 1467a(a)(1)(D)) is amended to read as 
follows:</DELETED>
                <DELETED>    ``(D) Savings and loan holding company.--
                </DELETED>
                        <DELETED>    ``(i) In general.--Except as 
                        provided in clause (ii), the term `savings and 
                        loan holding company' means any company that 
                        directly or indirectly controls a savings 
                        association or controls any other company that 
                        is a savings and loan holding 
                        company.</DELETED>
                        <DELETED>    ``(ii) Exclusion.--The term 
                        `savings and loan holding company' does not 
                        include a bank holding company that is 
                        registered under, and subject to, the Bank 
                        Holding Company Act of 1956, or to any company 
                        directly or indirectly controlled by such 
                        company (other than a savings 
                        association).''.</DELETED>
<DELETED>    (c) Acquisitions.--Section 10(e)(1)(B) of the Home Owners' 
Loan Act (12 U.S.C. 1467a(e)(1)(B)) is amended in the first sentence--
</DELETED>
        <DELETED>    (1) by striking ``or (ii)'' and inserting 
        ``(ii)''; and</DELETED>
        <DELETED>    (2) by inserting after ``group of persons'' the 
        following: ``, or (iii) acquired by a bank holding company that 
        is registered under, and subject to, the Bank Holding Company 
        Act of 1956, or any company controlled by such bank holding 
        company''.</DELETED>

<DELETED>SEC. 206. ELIMINATION OF THE PER BRANCH CAPITAL REQUIREMENT 
              FOR NATIONAL BANKS AND STATE MEMBER BANKS.</DELETED>

<DELETED>    Section 5155(h) of the Revised Statutes (12 U.S.C. 36(h)) 
is amended to read as follows:</DELETED>
<DELETED>    ``(h) [Reserved.]''.</DELETED>

<DELETED>SEC. 207. ELIMINATION OF BRANCH APPLICATION REQUIREMENTS FOR 
              AUTOMATIC TELLER MACHINES.</DELETED>

<DELETED>    (a) ``Branch'' Under National Bank Act.--Section 5155(j) 
of the Revised Statutes (12 U.S.C. 36(j)) is amended by adding at the 
end the following: ``The term `branch' does not include an automated 
teller machine or a remote service unit.''.</DELETED>
<DELETED>    (b) ``Branch'' Under Federal Deposit Insurance Act.--
Section 3(o) of the Federal Deposit Insurance Act (12 U.S.C. 1813(o)) 
is amended by striking ``lent; and the'' and inserting ``lent. The term 
`domestic branch' does not include an automated teller machine or a 
remote service unit. The''.</DELETED>

<DELETED>SEC. 208. ELIMINATION OF REQUIREMENT FOR APPROVAL OF 
              INVESTMENTS IN BANK PREMISES FOR WELL CAPITALIZED AND 
              WELL MANAGED BANKS.</DELETED>

<DELETED>    Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is 
amended by inserting before the period at the end the following: ``, or 
if such bank has a CAMEL composite rating of 1 or 2 under the Uniform 
Financial Institutions Rating System (or an equivalent rating under a 
comparable rating system) as of the most recent examination of such 
bank and, both before and immediately following the investment or loan, 
is well capitalized (as such term is defined in section 38(b) of the 
Federal Deposit Insurance Act) and the amount of such investment or 
loan would be equal to or less than 150 percent of the capital and 
surplus of such bank''.</DELETED>

<DELETED>SEC. 209. ELIMINATION OF APPROVAL REQUIREMENT FOR 
              DIVESTITURES.</DELETED>

<DELETED>    Section 2(g) of the Bank Holding Company Act of 1956 (12 
U.S.C. 1841(g)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by adding ``and'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``; and'' and 
        inserting a period; and</DELETED>
        <DELETED>    (3) by striking paragraph (3).</DELETED>

<DELETED>SEC. 210. ELIMINATION OF UNNECESSARY FILING FOR OFFICER AND 
              DIRECTOR APPOINTMENTS.</DELETED>

<DELETED>    Section 32 of the Federal Deposit Insurance Act (12 U.S.C. 
1831i) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by inserting ``(or such other period, 
                as determined by the appropriate Federal banking 
                agency)'' after ``30 days'';</DELETED>
                <DELETED>    (B) by striking ``if the insured 
                depository institution or depository institution 
                holding company'' and inserting ``if'';</DELETED>
                <DELETED>    (C) by striking paragraphs (1) and 
                (2);</DELETED>
                <DELETED>    (D) by redesignating paragraph (3) as 
                paragraph (1);</DELETED>
                <DELETED>    (E) in paragraph (1), as redesignated--
                </DELETED>
                        <DELETED>    (i) by inserting ``the insured 
                        depository institution or depository 
                        institution holding company'' before ``is not 
                        in compliance''; and</DELETED>
                        <DELETED>    (ii) by striking the period at the 
                        end and inserting ``; and''; and</DELETED>
                <DELETED>    (F) by adding at the end the following new 
                paragraph:</DELETED>
                <DELETED>    ``(G) the agency determines, in connection 
                with the review by the agency of the plan required 
                under section 38 or otherwise, that such prior notice 
                is appropriate.''; and</DELETED>
        <DELETED>    (2) in subsection (b), by striking ``30-day 
        period'' and inserting ``notice period, not to exceed 90 
        days.''.</DELETED>

<DELETED>SEC. 211. AMENDMENTS TO THE DEPOSITORY INSTITUTIONS MANAGEMENT 
              INTERLOCKS ACT.</DELETED>

<DELETED>    (a) Dual Service Among Larger Organizations.--Section 204 
of the Depository Institution Management Interlocks Act (12 U.S.C. 
3203) is amended--</DELETED>
        <DELETED>    (1) by striking ``$1,000,000,000'' and inserting 
        ``$2,500,000,000'';</DELETED>
        <DELETED>    (2) by striking ``$500,000,000'' and inserting 
        ``$1,500,000,000''; and</DELETED>
        <DELETED>    (3) by adding at the end the following: ``In order 
        to allow for inflation or market changes, the appropriate 
        Federal depository institutions regulatory agencies may, by 
        regulation, adjust, as necessary, the amount of total assets 
        required for depository institutions or depository holding 
        companies under this section.''.</DELETED>
<DELETED>    (b) Extension of Grandfather Exemption.--Section 206 of 
the Depository Institution Management Interlocks Act (12 U.S.C. 3205) 
is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by striking ``for a period 
        of, subject to the requirements of subsection (c), 20 years 
        after the date of enactment of this title'';</DELETED>
        <DELETED>    (2) in subsection (b), by striking the second 
        sentence; and</DELETED>
        <DELETED>    (3) by striking subsection (c).</DELETED>
<DELETED>    (c) Rules or Regulations.--Section 209 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3207) is amended--
</DELETED>
        <DELETED>    (1) by striking ``(a) In General.--Rules'' and 
        inserting ``Rules'';</DELETED>
        <DELETED>    (2) by inserting ``, including rules or 
        regulations that permit service by a management official that 
        would otherwise be prohibited by section 203 or section 204,'' 
        after ``title''; and</DELETED>
        <DELETED>    (3) by striking subsections (b) and (c).</DELETED>

<DELETED>SEC. 212. ELIMINATION OF RECORDKEEPING AND REPORTING 
              REQUIREMENTS FOR OFFICERS.</DELETED>

<DELETED>    (a) Permissibility of Employee-wide Benefit Plans.--
</DELETED>
        <DELETED>    (1) Employee benefit plans.--Section 22(h)(2) of 
        the Federal Reserve Act (12 U.S.C. 375b(2)) is amended--
        </DELETED>
                <DELETED>    (A) by redesignating subparagraphs (A) 
                through (C) as clauses (i) through (iii), respectively, 
                and indenting accordingly;</DELETED>
                <DELETED>    (B) by striking ``(2) Preferential terms 
                prohibited.--'' and inserting the following:</DELETED>
        <DELETED>    ``(2) Preferential terms prohibited.--</DELETED>
                <DELETED>    ``(A) In general.--''; and</DELETED>
                <DELETED>    (C) by adding at the end the following new 
                subparagraph:</DELETED>
                <DELETED>    ``(B) Exception.--Nothing in this 
                paragraph shall prohibit extensions of credit made 
                pursuant to a benefit or compensation program widely 
                available to employees of the member bank.''.</DELETED>
        <DELETED>    (2) Exception for extensions of credit to 
        executive officers and directors of nonbank affiliates.--
        Section 22(h)(8)(B) of the Federal Reserve Act (12 U.S.C. 
        375b(8)(B)) is amended by striking ``, except as that 
        subparagraph makes applicable paragraph (2),''.</DELETED>
<DELETED>    (b) Recordkeeping Requirements.--Section 22(h)(10) of the 
Federal Reserve Act (12 U.S.C. 375b(10)) is amended--</DELETED>
        <DELETED>    (1) by striking ``The Board'' and inserting the 
        following:</DELETED>
                <DELETED>    ``(A) In general.--The Board''; 
                and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        paragraph:</DELETED>
                <DELETED>    ``(B) Recordkeeping requirements.--The 
                regulations prescribed by the Board under subparagraph 
                (A) shall--</DELETED>
                        <DELETED>    ``(i) specify the recordkeeping 
                        required of member banks to ensure compliance 
                        with this section; and</DELETED>
                        <DELETED>    ``(ii) provide that if a member 
                        bank is determined to be in compliance with 
                        such recordkeeping requirements, such member 
                        bank shall also be determined to be in 
                        compliance with the audit requirement of 
                        section 36(e) of the Federal Deposit Insurance 
                        Act.''.</DELETED>
<DELETED>    (c) Reporting Requirements.--Section 22(g) of the Federal 
Reserve Act (12 U.S.C. 375a) is amended by striking paragraphs (6) and 
(9) and redesignating paragraphs (7), (8), and (10) as paragraphs (6), 
(7), and (8), respectively.</DELETED>
<DELETED>    (d) Unnecessary Reports.--Section 7(k) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(k)) is amended to read as 
follows:</DELETED>
<DELETED>    ``(k) [Reserved.]''.</DELETED>
<DELETED>    (e) Reports Regarding Loans From Correspondent Banks.--
Section 106(b)(2) of the Bank Holding Company Act Amendments of 1970 
(12 U.S.C. 1972(2)) is amended--</DELETED>
        <DELETED>    (1) by striking subparagraph (G); and</DELETED>
        <DELETED>    (2) by redesignating subparagraphs (H) and (I) as 
        subparagraphs (G) and (H), respectively.</DELETED>

<DELETED>SEC. 213. ABOLITION OF APPRAISAL SUBCOMMITTEE; TRANSFER OF 
              FUNCTIONS.</DELETED>

<DELETED>    (a) Abolition of Appraisal Subcommittee.--</DELETED>
        <DELETED>    (1) Amendment to federal financial institutions 
        examination council act of 1978.--Section 1011 of the Federal 
        Financial Institutions Examination Council Act of 1978 (12 
        U.S.C. 3310) is repealed.</DELETED>
        <DELETED>    (2) Amendments to the financial institutions 
        reform, recovery, and enforcement act of 1989.--</DELETED>
                <DELETED>    (A) Repeals.--The following sections of 
                the Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 are repealed:</DELETED>
                        <DELETED>    (i) Section 1102 (12 U.S.C. 
                        3310).</DELETED>
                        <DELETED>    (ii) Section 1104 (12 U.S.C. 
                        3333).</DELETED>
                        <DELETED>    (iii) Section 1105 (12 U.S.C. 
                        3334).</DELETED>
                        <DELETED>    (iv) Section 1106 (12 U.S.C. 
                        3335).</DELETED>
                        <DELETED>    (v) Section 1108 (12 U.S.C. 
                        3337).</DELETED>
                <DELETED>    (B) Definitions.--Section 1121 of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 3350) is amended--
                </DELETED>
                        <DELETED>    (i) by striking paragraphs (2) and 
                        (8);</DELETED>
                        <DELETED>    (ii) by redesignating paragraphs 
                        (3) through (7) as paragraphs (2) through (6), 
                        respectively; and</DELETED>
                        <DELETED>    (iii) by redesignating paragraphs 
                        (9) and (10) as paragraphs (7) and (8), 
                        respectively.</DELETED>
        <DELETED>    (3) Conforming amendment to the national housing 
        act.--Section 202(e) of the National Housing Act (12 U.S.C. 
        1708(e)) is amended--</DELETED>
                <DELETED>    (A) by striking paragraph (2); 
                and</DELETED>
                <DELETED>    (B) by redesignating paragraphs (3) and 
                (4) and paragraphs (2) and (3), respectively.</DELETED>
<DELETED>    (b) Transfer of Functions.--</DELETED>
        <DELETED>    (1) Amendments to the financial institutions 
        reform, recovery, and enforcement act of 1989.--</DELETED>
                <DELETED>    (A) Transfer of functions.--Section 1103 
                of the Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 3332) is amended--
                </DELETED>
                        <DELETED>    (i) by striking ``sec. 1103.'' and 
                        inserting ``sec. 1102.'';</DELETED>
                        <DELETED>    (ii) by striking ``Appraisal 
                        Subcommittee'' each place such term appears and 
                        inserting ``Federal Financial Institutions 
                        Examination Council''; and</DELETED>
                        <DELETED>    (iii) in subsection (a)--
                        </DELETED>
                                <DELETED>    (I) in paragraph (3), by 
                                inserting before the semicolon the 
                                following: ``, if the Council 
                                determines that maintaining a national 
                                registry under this paragraph will 
                                further the purposes of this title (as 
                                described in section 1101)''; 
                                and</DELETED>
                                <DELETED>    (II) by striking paragraph 
                                (4) and inserting the 
                                following:</DELETED>
        <DELETED>    ``(4) include in its annual report to the Congress 
        a description of the manner in which the Council has performed 
        the functions assigned to the Council under this 
        title.''.</DELETED>
                <DELETED>    (B) Roster of state certified or licensed 
                appraisers.--Section 1109 of the Financial Institutions 
                Reform, Recovery, and Enforcement Act of 1989 (12 
                U.S.C. 3338) is amended to read as follows:</DELETED>

<DELETED>``SEC. 1104. ROSTER OF STATE CERTIFIED OR LICENSED 
              APPRAISERS.</DELETED>

<DELETED>    ``(a) In General.--Each State that has an appraiser 
certifying and licensing agency with a certification or license that 
meets the requirements of this title shall--</DELETED>
        <DELETED>    ``(1) upon request of the Federal Financial 
        Institutions Examination Council, transmit to the Council 
        annually (or at a less frequent interval specified by the 
        Council) a roster listing individuals who have received a State 
        certification or license in accordance with this 
        title;</DELETED>
        <DELETED>    ``(2) collect from such individuals who perform or 
        seek to perform appraisals in federally related transactions, 
        an annual registry fee, in an amount determined by the Council, 
        but not to exceed $10 per year, to support the activities of 
        the State under this title; and</DELETED>
        <DELETED>    ``(3) transmit all registry fees to the Council on 
        an annual basis.</DELETED>
<DELETED>    ``(b) Status of Fees.--Fees collected and transmitted to 
the Council under subsection (a) shall not be considered to be 
appropriated funds.''.</DELETED>
                <DELETED>    (C) Conforming amendments.--Title XI of 
                the Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is 
                amended--</DELETED>
                        <DELETED>    (i) in section 1116(e)--</DELETED>
                                <DELETED>    (I) by striking 
                                ``Appraisal Subcommittee'' and 
                                inserting ``Federal Financial 
                                Institutions Examination Council''; 
                                and</DELETED>
                                <DELETED>    (II) by striking ``the 
                                Subcommittee'' and inserting ``the 
                                Federal Financial Institutions 
                                Examination Council'';</DELETED>
                        <DELETED>    (ii) in section 1118--</DELETED>
                                <DELETED>    (I) in the subsection 
                                heading, by striking ``by Appraisal 
                                Subcommittee''; and</DELETED>
                                <DELETED>    (II) by striking 
                                ``Appraisal Subcommittee'' each place 
                                such term appears and inserting 
                                ``Federal Financial Institutions 
                                Examination Council'';</DELETED>
                        <DELETED>    (iii) in section 1119--</DELETED>
                                <DELETED>    (I) by striking ``Subject 
                                to the approval of the Council, the 
                                Appraisal Subcommittee'' each place 
                                such term appears and inserting ``The 
                                Council''; and</DELETED>
                                <DELETED>    (II) by striking 
                                ``Appraisal Subcommittee'' each place 
                                such term appears and inserting 
                                ``Federal Financial Institutions 
                                Examination Council'';</DELETED>
                        <DELETED>    (iv) in section 1120, by striking 
                        ``Appraisal Subcommittee'' and inserting 
                        ``Federal Financial Institutions Examination 
                        Council'';</DELETED>
                        <DELETED>    (v) in section 1122, by striking 
                        subsection (f); and</DELETED>
                        <DELETED>    (vi) by redesignating--</DELETED>
                                <DELETED>    (I) section 1107 as 
                                section 1103; and</DELETED>
                                <DELETED>    (II) sections 1109 through 
                                1121 as sections 1104 through 1116, 
                                respectively.</DELETED>
        <DELETED>    (2) Administrative provisions.--</DELETED>
                <DELETED>    (A) Remission of funds to the treasury.--
                On the date that is 90 days after the date of enactment 
                of this Act, all funds held by, and the right to 
                collect all funds owed to, the Appraisal Subcommittee 
                on the date that is 90 days after the date of enactment 
                of this Act shall be transferred to the Treasury of the 
                United States.</DELETED>
                <DELETED>    (B) Repayment of prepaid registry fees.--
                Not later than 90 days after the date of enactment of 
                this Act, the Appraisal Subcommittee shall refund to 
                the States any registry fees prepaid to the Appraisal 
                Subcommittee after the date of enactment of this 
                Act.</DELETED>
                <DELETED>    (C) Transfer of employees.--</DELETED>
                        <DELETED>    (i) Identifying employees for 
                        transfer.--Not later than 30 days after the 
                        date of enactment of this Act, the Council 
                        shall identify for transfer to the Council the 
                        employees of the Appraisal Subcommittee that 
                        the Council determines to be necessary to 
                        perform the functions transferred to the 
                        Council under this subsection.</DELETED>
                        <DELETED>    (ii) Transfer date.--On the date 
                        that is 90 days after the date of enactment of 
                        this Act, each employee identified for transfer 
                        under clause (i) shall be transferred to the 
                        Council.</DELETED>
                <DELETED>    (D) Rights of transferred employees.--
                </DELETED>
                        <DELETED>    (i) Comparable positions.--Each 
                        employee transferred to the Council under 
                        subparagraph (C) shall, on the transfer date 
                        specified in subparagraph (C)(ii), be appointed 
                        to a position under the compensation system and 
                        performance evaluation system of the Council 
                        that is comparable in tenure and grade to the 
                        position held by the employee on the day before 
                        the transfer date specified in subparagraph 
                        (C)(ii).</DELETED>
                        <DELETED>    (ii) Pay.--</DELETED>
                                <DELETED>    (I) In general.--Except as 
                                provided in subclause (II), each 
                                employee transferred to the Council 
                                under subparagraph (C) shall, during 
                                the 12-month period beginning on the 
                                transfer date specified in subparagraph 
                                (C)(ii), receive pay at a rate not less 
                                than the basic rate of pay that the 
                                employee received during the 12-month 
                                period immediately preceding the 
                                transfer date specified in subparagraph 
                                (C)(ii).</DELETED>
                                <DELETED>    (II) Exceptions.--
                                Subclause (I) does not limit the right 
                                of the Council to reduce a transferred 
                                rate of basic pay of an employer for 
                                cause or unacceptable performance, or 
                                with the consent of the 
                                employee.</DELETED>
                                <DELETED>    (III) Protection only 
                                while employed.--Subclause (I) shall 
                                apply to an employee only during the 
                                period that the employee is employed by 
                                the Council.</DELETED>
                        <DELETED>    (iii) Retirement benefits.--
                        </DELETED>
                                <DELETED>    (I) Continuation of 
                                existing retirement plan.--Except as 
                                otherwise permitted by law, each 
                                employee transferred to the Council 
                                under subparagraph (C) shall remain 
                                enrolled in the retirement plan (and 
                                any associated thrift savings plan) in 
                                which the employee was enrolled on the 
                                day before the transfer date specified 
                                in subparagraph (C)(ii) during the 
                                period that the employee is employed by 
                                the Council.</DELETED>
                                <DELETED>    (II) Employer 
                                contribution.--The Council shall pay 
                                any employer contributions to the 
                                retirement plan in which each employee 
                                transferred to the Council under 
                                subparagraph (C) is subject during the 
                                period that the employee is employed by 
                                the Council, in accordance with such 
                                retirement plan.</DELETED>
                        <DELETED>    (iv) No private right of action.--
                        This subparagraph does not provide any employee 
                        with any right of action to require the Council 
                        or any officer, employee, agent, or 
                        administrator of the Council to take any action 
                        under this subparagraph.</DELETED>
                        <DELETED>    (v) Priority of this act.--If any 
                        protection provided under this subparagraph 
                        conflicts with any protection provided to 
                        transferred employees under section 3503 of 
                        title 5, United States Code, the provisions of 
                        this subparagraph shall control.</DELETED>

<DELETED>SEC. 214. BRANCH CLOSURES.</DELETED>

<DELETED>    (a) Amendment to the Federal Deposit Insurance Act.--
Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 1831r-1) is 
amended by adding at the end the following new subsection:</DELETED>
<DELETED>    ``(e) Definitions.--For purposes of this section, the term 
`branch' does not include--</DELETED>
        <DELETED>    ``(1) an automated teller machine;</DELETED>
        <DELETED>    ``(2) a branch acquired through merger, 
        consolidation, purchase, assumption or other method that is 
        located in a local market area currently served by another 
        branch of the acquiring institution;</DELETED>
        <DELETED>    ``(3) a branch that is closed and reopened in 
        another location within the same local market area that would 
        continue to provide banking services to substantially all of 
        the customers currently served by the branch that is 
        closed;</DELETED>
        <DELETED>    ``(4) a branch that is closed in connection with--
        </DELETED>
                <DELETED>    ``(A) an emergency acquisition under--
                </DELETED>
                        <DELETED>    ``(i) section 11(n); or</DELETED>
                        <DELETED>    ``(ii) subsection (f) or (k) of 
                        section 13; or</DELETED>
                <DELETED>    ``(B) any assistance provided by the 
                Corporation under section 13(c); or</DELETED>
        <DELETED>    ``(5) any other branch closure the exemption of 
        which from the notice requirements of this section would not 
        produce a result inconsistent with the purposes of this 
        section, as determined, by regulation, by the appropriate 
        Federal banking agency.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall be construed to have become effective on the date of enactment of 
the Federal Deposit Insurance Corporation Improvement Act of 
1991.</DELETED>

<DELETED>SEC. 215. FOREIGN BANKS.</DELETED>

<DELETED>    (a) Termination of Foreign Branches.--Section 7(e) of the 
International Banking Act of 1978 (12 U.S.C. 3105(e)) is amended--
</DELETED>
        <DELETED>    (1) by striking the subsection designation and the 
        subsection heading;</DELETED>
        <DELETED>    (2) by striking paragraphs (1) through 
        (6);</DELETED>
        <DELETED>    (3) by redesignating paragraph (7) as paragraph 
        (5); and</DELETED>
        <DELETED>    (4) by inserting before paragraph (5), as 
        redesignated, the following:</DELETED>
<DELETED>    ``(e) Termination of Foreign Bank Offices in the United 
States.--</DELETED>
        <DELETED>    ``(1) Recommendation for termination of foreign 
        bank offices in the united states.--The Board may transmit to 
        the Comptroller of the Currency or to any appropriate State 
        bank supervisor a recommendation that the license of any 
        branch, agency, or commercial bank lending company subsidiary 
        of a foreign bank in the United States be terminated if the 
        Board finds that--</DELETED>
                <DELETED>    ``(A) the foreign bank is not subject to 
                comprehensive supervision or regulation on a 
                consolidated basis by the appropriate authorities in 
                the home country of the foreign bank; or</DELETED>
                <DELETED>    ``(B)(i) there is reasonable cause to 
                believe that such foreign bank, or any affiliate of 
                such foreign bank, has committed a violation of law or 
                engaged in an unsafe or unsound banking practice in the 
                United States; and</DELETED>
                <DELETED>    ``(ii) as a result of such violation or 
                practice, the continued operation of the branch, 
                agency, or commercial lending company subsidiary of the 
                foreign bank in the United States would not be 
                consistent with the public interest or with the 
                purposes of this Act, the Bank Holding Company Act of 
                1956, or the Federal Deposit Insurance Act.</DELETED>
        <DELETED>    ``(2) Notice and hearing.--</DELETED>
                <DELETED>    ``(A) In general.--The Board shall provide 
                notice and opportunity for a hearing to a foreign bank 
                before transmitting to the Comptroller of the Currency 
                or to any appropriate State bank supervisor a 
                recommendation described in paragraph (1).</DELETED>
                <DELETED>    ``(B) Discretion to deny hearing.--The 
                Board may transmit a recommendation under subparagraph 
                (A) without providing for an opportunity for a hearing 
                if the Board determines that expeditious action is 
                necessary in order to protect the public 
                interest.</DELETED>
        <DELETED>    ``(3) Compliance with state and federal law.--Any 
        foreign bank that is required to terminate activities conducted 
        at offices of subsidiaries in the United States as a result of 
        a recommendation made under this subsection shall comply with 
        the requirements of applicable Federal and State law with 
        respect to procedures for the closure or dissolution of such 
        offices or subsidiaries.</DELETED>
        <DELETED>    ``(4) Enforcement of orders.--</DELETED>
                <DELETED>    ``(A) In general.--The Comptroller of the 
                Currency or the appropriate State bank supervisor may 
                invoke the aid of the district court of the United 
                States within the jurisdiction in which the office or 
                subsidiary is located in case of contumacy of any 
                office or subsidiary of the foreign bank against 
                which--</DELETED>
                        <DELETED>    ``(i) the Comptroller of the 
                        Currency has issued an order under section 
                        4(i); or</DELETED>
                        <DELETED>    ``(ii) any appropriate State bank 
                        supervisor has issued--</DELETED>
                                <DELETED>    ``(I) an order in response 
                                to a recommendation under paragraph 
                                (1); or</DELETED>
                                <DELETED>    ``(II) a refusal by such 
                                office or subsidiary to comply with 
                                such order.</DELETED>
                <DELETED>    ``(B) Court order.--Any court referred to 
                in subparagraph (A) may issue an order requiring 
                compliance with an order issued under paragraph 
                (1).''.</DELETED>
<DELETED>    (b) Elimination of Duplicate Examinations of Foreign 
Banks.--Section 7(c)(1) of the International Banking Act of 1978 (12 
U.S.C. 3105(c)(1)) is amended by striking subparagraphs (B), (C), and 
(D) and inserting the following:</DELETED>
                <DELETED>    ``(B) Reliance on primary supervisor.--In 
                order to avoid unnecessary duplication and cost, the 
                Board shall, to the maximum extent practicable, rely 
                upon the reports of examinations made by the 
                Comptroller of the Currency, the Federal Deposit 
                Insurance Corporation, or the appropriate State bank 
                supervisor in achieving the purposes of this 
                subsection.</DELETED>
                <DELETED>    ``(C) On-site examination.--Each branch or 
                agency of a foreign bank shall be subject to on-site 
                examination on the same schedule that a comparable 
                national or State nonmember bank would be examined by 
                the Comptroller of the Currency or the Federal Deposit 
                Insurance Corporation.</DELETED>
                <DELETED>    ``(D) Cost of examinations.--The cost of 
                any examination undertaken under subparagraph (A) shall 
                be assessed against and collected from the foreign bank 
                or the foreign company that controls the foreign bank, 
                as applicable, but only to the same extent that fees 
                are collected by the Board for examination of any State 
                member insured bank.''.</DELETED>
<DELETED>    (c) Streamlining Review of Foreign Bank Applications by 
the Board.--Section 7(d) of the International Banking Act of 1978 (12 
U.S.C. 3105(d)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraphs (1) and (2) and 
        inserting the following:</DELETED>
        <DELETED>    ``(1) Prior review required.--</DELETED>
                <DELETED>    ``(A) In general.--Before any foreign bank 
                application to establish a branch or an agency, or 
                acquire ownership or control of a commercial lending 
                company may be approved by any appropriate State bank 
                supervisor or the Comptroller of the Currency, the 
                application shall be submitted for review to the Board 
                for a period of not more than 60 days.</DELETED>
                <DELETED>    ``(B) Purpose.--The purpose of the review 
                conducted under subparagraph (A) shall be to determine 
                whether approval of any application would place at risk 
                the safe and sound operation of the United States 
                banking system.</DELETED>
        <DELETED>    ``(2) Authority of the board.--Based on the 
        determination described in paragraph (1), the Board may--
        </DELETED>
                <DELETED>    ``(A) deny the application;</DELETED>
                <DELETED>    ``(B) extend for 60 days the period for 
                review of any application, after providing notice of 
                and the reasons for the extension to the applicant and 
                any appropriate State bank supervisor or the 
                Comptroller of the Currency; or</DELETED>
                <DELETED>    ``(C) approve the application, either by 
                affirmative action or by taking no action during the 
                60-day period described in paragraph (1).''; 
                and</DELETED>
        <DELETED>    (2) in paragraph (3)--</DELETED>
                <DELETED>    (A) by redesignating subparagraphs (A) 
                through (D) as subparagraphs (C) through (F); 
                and</DELETED>
                <DELETED>    (B) by striking ``In'' and all that 
                follows through ``account--'' and inserting the 
                following: ``In making any determination under 
                paragraph (1), the Board may consider--</DELETED>
                <DELETED>    ``(A) whether the foreign bank engages 
                directly in the business of banking outside of the 
                United States and is subject to comprehensive 
                supervision or regulation on a consolidated basis by 
                the appropriate authorities in the home country of the 
                foreign bank;</DELETED>
                <DELETED>    ``(B) whether the foreign bank has 
                furnished to the Board the information it needs to 
                adequately assess the application;''.</DELETED>

   <DELETED>Subtitle B--Eliminating Unnecessary Costs and Paperwork 
                           Burdens</DELETED>

<DELETED>SEC. 221. SMALL BANK EXAMINATION CYCLE.</DELETED>

<DELETED>    (a) Time Period Discretion.--Section 10(d)(4) of the 
Federal Deposit Insurance Act (12 U.S.C. 1820(d)(4)) is amended--
</DELETED>
        <DELETED>    (1) in the section heading, by striking ``18-month 
        rule'' and inserting ``24-month rule''; and</DELETED>
        <DELETED>    (2) in the first sentence, by striking ``18-
        month'' and inserting ``24-month''.</DELETED>
<DELETED>    (b) Small Bank Size Discretion.--Section 10(d) of the 
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended--
</DELETED>
        <DELETED>    (1) by redesignating the second paragraph 
        designated as paragraph (8) as paragraph (9); and</DELETED>
        <DELETED>    (2) in paragraph (9), as redesignated, by striking 
        ``$175,000,000'' and inserting ``$250,000,000''.</DELETED>

<DELETED>SEC. 222. REIMBURSEMENT FOR CORPORATE RECORDS.</DELETED>

<DELETED>    Section 1115(a) of the Right to Financial Privacy Act of 
1978 (12 U.S.C. 3415) is amended by inserting ``(including any 
corporate customer)'' after ``pertaining to a customer''.</DELETED>

<DELETED>SEC. 223. REQUIRED REGULATORY REVIEW OF REGULATIONS.</DELETED>

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

        <DELETED>Subtitle C--Eliminating Unnecessary Reporting 
                         Requirements</DELETED>

<DELETED>SEC. 231. PROHIBITION ON ADDITIONAL REPORTING UNDER COMMUNITY 
              REINVESTMENT ACT OF 1977.</DELETED>

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

<DELETED>``SEC. 806. REGULATIONS.</DELETED>

<DELETED>    ``(a) In General.--Each appropriate Federal financial 
supervisory agency shall promulgate such regulations as may be 
necessary to carry out this title.</DELETED>
<DELETED>    ``(b) No Additional Recordkeeping Requirements.--The 
regulations promulgated under subsection (a) and any accompanying 
policy statements, commentary, examiner guidances, or other supervisory 
material shall not impose any recordkeeping requirements on financial 
institutions that do not have the effect of eliminating, streamlining, 
or reducing regulatory burdens upon such institutions.</DELETED>
<DELETED>    ``(c) Loan Data.--No loan data may be required to be 
collected and reported by a financial institution and no such data may 
be made public by any Federal financial supervisory agency under this 
title.''.</DELETED>

<DELETED>SEC. 232. EXEMPTION FROM COMMUNITY SUPPORT REQUIREMENTS OF THE 
              FEDERAL HOME LOAN BANK ACT FOR INSTITUTIONS MEETING 
              CERTAIN CRITERIA.</DELETED>

<DELETED>    Section 10(g) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(g)) is amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(3) Members excluded.--</DELETED>
                <DELETED>    ``(A) In general.--No rule or regulation 
                promulgated under this subsection that establishes 
                community support requirements shall apply to a member 
                if such member--</DELETED>
                        <DELETED>    ``(i) is a regulated financial 
                        institution (as such term is defined in section 
                        803 of the Community Reinvestment Act of 1977); 
                        and</DELETED>
                        <DELETED>    ``(ii)(I) has not received a 
                        composite rating of `needs to improve' or 
                        `substantial noncompliance' from the primary 
                        regulator of the member as of the most recent 
                        examination of the member under the Community 
                        Reinvestment Act of 1977; or</DELETED>
                        <DELETED>    ``(II) has been in operation for 
                        less than 2 years and has not received a rating 
                        from the primary regulator of the member under 
                        the Community Reinvestment Act of 
                        1977.</DELETED>
                <DELETED>    ``(B) Additional requirements.--If a 
                member does not qualify for an exemption under 
                subparagraph (A), the record of the member of lending 
                to first-time homebuyers shall be taken into account in 
                determining compliance with the rules and regulations 
                described in subparagraph (A).''.</DELETED>

<DELETED>SEC. 233. RECORDING REQUIREMENTS.</DELETED>

<DELETED>    Section 5325 of title 31, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by striking ``unless--'' and all that 
                follows through the end of paragraph (1) and inserting 
                ``unless the individual has a transaction account with 
                such financial institution and the financial 
                institution verifies that fact through a signature card 
                or other information maintained by such institution in 
                connection with the account of such individual.''; 
                and</DELETED>
                <DELETED>    (B) by striking paragraph (2); 
                and</DELETED>
        <DELETED>    (2) in subsection (b), by striking ``paragraph (1) 
        or (2)''.</DELETED>

<DELETED>SEC. 234. IDENTIFICATION OF NONBANK FINANCIAL INSTITUTION 
              CUSTOMERS.</DELETED>

<DELETED>    (a) In General.--Section 5327 of title 31, United States 
Code, is repealed.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--Section 
5321(a)(7) of title 31, United States Code, is repealed.</DELETED>

<DELETED>SEC. 235. REPEAL OF COMMERCIAL LOAN REPORTING 
              REQUIREMENTS.</DELETED>

<DELETED>    The following sections of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 are repealed:</DELETED>
        <DELETED>    (1) Section 122 (12 U.S.C. 1817 note).</DELETED>
        <DELETED>    (2) Section 477 (12 U.S.C. 251).</DELETED>

<DELETED>SEC. 236. INCREASE IN HOME MORTGAGE DISCLOSURE ACT; DISCLOSURE 
              EXEMPTION.</DELETED>

<DELETED>    (a) In General.--Section 309 of the Home Mortgage 
Disclosure Act of 1975 (12 U.S.C. 2808) is amended--</DELETED>
        <DELETED>    (1) in the second sentence, by striking 
        ``$10,000,000'' and inserting ``$50,000,000''; and</DELETED>
        <DELETED>    (2) by adding at the end the following: ``The 
        Board may also exempt from the provisions of this title any 
        institution described in section 303(2)(A) that has total 
        assets of not less than $50,000,000 as of the last complete 
        fiscal year of the institution, if the burden on the 
        institution of complying with this title outweighs the 
        usefulness of the information required to be 
        disclosed.''.</DELETED>
<DELETED>    (b) Opportunity To Reduce Compliance Burden.--Section 304 
of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) is amended 
by adding at the end the following new subsection:</DELETED>
<DELETED>    ``(m) Opportunity To Reduce Compliance Burden.--</DELETED>
        <DELETED>    ``(1) In general.--</DELETED>
                <DELETED>    ``(A) Satisfaction of public availability 
                requirements.--A depository institution shall be deemed 
                to have satisfied the public availability requirements 
                of subsection (a) if the institution compiles the 
                information required under that subsection at the home 
                office of the institution and provides notice at the 
                branch locations specified in subsection (a) that such 
                information is available from the home office of the 
                institution upon written request.</DELETED>
                <DELETED>    ``(B) Provision of information upon 
                request.--Not later than 15 days after the receipt of 
                the written request for any information required to be 
                compiled under subsection (a), the home office of the 
                depository institution receiving the request shall 
                provide the information pertinent to the location of 
                the branch in question to the person requesting the 
                information.</DELETED>
        <DELETED>    ``(2) Form of information.--In complying with 
        paragraph (1), a depository institution shall, in the sole 
        discretion of the institution, provide the person requesting 
        such information with--</DELETED>
                <DELETED>    ``(A) a paper copy of the information 
                requested; or</DELETED>
                <DELETED>    ``(B) if acceptable to the person, the 
                information through a form of electronic medium, such 
                as a computer disk.''.</DELETED>

<DELETED>SEC. 237. ELIMINATION OF STOCK LOAN REPORTING 
              REQUIREMENT.</DELETED>

<DELETED>    Section 7(j) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(j)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraphs (9) and (10);</DELETED>
        <DELETED>    (2) by redesignating paragraphs (11) through (18) 
        as paragraphs (9) through (16), respectively; and</DELETED>
        <DELETED>    (3) in paragraph (9), as redesignated, by striking 
        ``or (9)''.</DELETED>

       <DELETED>Subtitle D--Regulatory Micromanagement</DELETED>

<DELETED>SEC. 241. NATIONAL BANK DIRECTORS.</DELETED>

<DELETED>    Section 5146 of the Revised Statutes (12 U.S.C. 72) is 
amended in the first sentence, by striking ``except'' and all that 
follows through the end of the sentence and inserting the following: 
``except that the Comptroller may, in the discretion of the 
Comptroller, waive the requirement of citizenship (in the case of not 
more than a minority of the total number of directors) and the 
requirement of residency.''.</DELETED>

<DELETED>SEC. 242. PAPERWORK REDUCTION REVIEW.</DELETED>

<DELETED>    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, in consultation with insured 
depository institutions, insured credit unions, and other interested 
parties, shall--</DELETED>
        <DELETED>    (1) review the extent to which existing 
        regulations require insured depository institutions and insured 
        credit unions to produce unnecessary internal written policies; 
        and</DELETED>
        <DELETED>    (2) eliminate such requirements, where 
        appropriate.</DELETED>

<DELETED>SEC. 243. STATE BANK REPRESENTATION ON BOARD OF DIRECTORS OF 
              THE FDIC.</DELETED>

<DELETED>    (a) In General.--Section 2(a)(1) of the Federal Deposit 
Insurance Act (12 U.S.C. 1812(a)(1)) is amended--</DELETED>
        <DELETED>    (1) by striking ``5 members'' and inserting ``6 
        members'';</DELETED>
        <DELETED>    (2) in subparagraph (B), by striking ``and'' at 
        the end;</DELETED>
        <DELETED>    (3) in subparagraph (C), by striking the period at 
        the end and inserting ``; and''; and</DELETED>
        <DELETED>    (4) by adding at the end the following new 
        subparagraph:</DELETED>
                <DELETED>    ``(D) 1 of whom shall be appointed by the 
                President, by and with the advice and consent of the 
                Senate, from among individuals serving as State bank 
                commissioners or supervisors (or the functional 
                equivalent thereof) as of the date on which the 
                appointment is made.''.</DELETED>
<DELETED>    (b) Chairperson and Vice Chairperson.--Section 2(b) of the 
Federal Deposit Insurance Act (12 U.S.C. 1812(b)) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``appointed 
        members'' and inserting ``members appointed pursuant to 
        subsection (a)(1)(C)''; and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``appointed 
        members'' and inserting ``members appointed pursuant to 
        subsection (a)(1)(C)''.</DELETED>
<DELETED>    (c) Terms.--Section 2(c)(1) of the Federal Deposit 
Insurance Act (12 U.S.C. 1812(c)(1)) is amended--</DELETED>
        <DELETED>    (1) by striking ``Each appointed member'' and 
        inserting the following:</DELETED>
                <DELETED>    ``(A) In general.--Each member appointed 
                pursuant to subsection (a)(1)(C)''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
                <DELETED>    ``(B) State bank representatives.--
                </DELETED>
                        <DELETED>    ``(i) In general.--Except as 
                        provided in clause (ii), each member appointed 
                        pursuant to subsection (a)(1)(D) shall be 
                        appointed for a single term of 2 
                        years.</DELETED>
                        <DELETED>    ``(ii) Exception.--If a member 
                        appointed pursuant to subsection (a)(1)(D) 
                        ceases to be a State banking commissioner or 
                        supervisor (or functional equivalent thereof) 
                        on a date prior to the expiration of the 2-year 
                        period described in clause (i), such member's 
                        membership on the Board of Directors shall 
                        terminate on that date.''.</DELETED>
<DELETED>    (d) Vacancies.--Section 2(d)(1) of the Federal Deposit 
Insurance Act (12 U.S.C. 1812(d)(1)) is amended--</DELETED>
        <DELETED>    (1) by striking ``Any vacancy'' and inserting the 
        following:</DELETED>
                <DELETED>    ``(A) In general.--Subject to the 
                restrictions contained in subparagraph (B), any 
                vacancy''; and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        subparagraph:</DELETED>
                <DELETED>    ``(B) Restrictions.--</DELETED>
                        <DELETED>    ``(i) Same individual.--In filling 
                        a vacancy on the Board of Directors pursuant to 
                        subsection (a)(1)(D), the President may not 
                        appoint an individual who has previously served 
                        as a member of the Board of Directors pursuant 
                        to subsection (a)(1)(D).</DELETED>
                        <DELETED>    ``(ii) Same state.--In filling a 
                        vacancy on the Board of Directors pursuant to 
                        subsection (a)(1)(D) (other than a vacancy 
                        occurring under subsection (c)(1)(B)(ii)), the 
                        President may not appoint an individual who is 
                        serving as the State bank commissioner or 
                        supervisor (or functional equivalent thereof) 
                        of the same State as the member most recently 
                        appointed pursuant to subsection 
                        (a)(1)(D).''.</DELETED>
<DELETED>    (e) Noncompensation; Travel Expenses.--Section 2 of the 
Federal Deposit Insurance Act (12 U.S.C. 1812) is amended by adding at 
the end the following new subsection:</DELETED>
<DELETED>    ``(g) Personnel Matters Relating to State Bank 
Representatives.--Members of the Board of Directors appointed pursuant 
to subsection (a)(1)(D)--</DELETED>
        <DELETED>    ``(1) shall serve without compensation; 
        and</DELETED>
        <DELETED>    ``(2) shall be allowed travel expenses, including 
        per diem in lieu of subsistence, at rates authorized for 
        employees of agencies under subchapter I of chapter 57 of title 
        5, United States Code, while away from their homes or regular 
        places of business in the performance of services for the Board 
        of Directors.''.</DELETED>

  <DELETED>TITLE III--REGULATORY IMPACT ON COST OF CREDIT AND CREDIT 
                         AVAILABILITY</DELETED>

   <DELETED>Subtitle A--Lowering Compliance Costs To Promote Credit 
                         Availability</DELETED>

<DELETED>SEC. 301. AUDIT COSTS.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) Auditor attestations.--Section 36 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1831m) is amended by 
        striking subsection (e) and inserting the following:</DELETED>
<DELETED>    ``(e) [Reserved.]''.</DELETED>
        <DELETED>    (2) Independent audit committees.--Section 
        36(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
        1831m(g)(1)) is amended--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``entirely'' and inserting ``the majority of which 
                is''; and</DELETED>
                <DELETED>    (B) by adding at the end the following new 
                subparagraph:</DELETED>
                <DELETED>    ``(D) Exemption authority.--</DELETED>
                        <DELETED>    ``(i) In general.--Each 
                        appropriate Federal banking agency shall, by 
                        regulation, exempt from the requirements of 
                        this subsection each insured depository 
                        institution that has, in the determination of 
                        the agency, encountered hardships in retaining 
                        competent directors on the internal audit 
                        committee of the institution as a result of 
                        this subsection.</DELETED>
                        <DELETED>    ``(ii) Factors considered.--In 
                        determining whether to exempt an insured 
                        depository institution under clause (i), each 
                        appropriate Federal banking agency shall take 
                        into consideration such factors as the size of 
                        the institution and the availability of 
                        competent outside directors from the community 
                        of the institution.''.</DELETED>
        <DELETED>    (3) Public availability.--Section 36(a)(3) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is 
        amended by adding at the end the following: ``Notwithstanding 
        the preceding sentence, the Corporation and the appropriate 
        Federal banking agencies may designate certain information as 
        privileged and confidential and not available to the 
        public.''.</DELETED>

<DELETED>SEC. 302. INCENTIVES FOR SELF-TESTING.</DELETED>

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

<DELETED>``SEC. 704A. ENCOURAGEMENT OF CREDITORS TO SELF-TEST FOR EQUAL 
              CREDIT OPPORTUNITY ACT COMPLIANCE.</DELETED>

<DELETED>    ``If a creditor conducts, or authorizes an independent 
third party to conduct, a test or review of the lending operations of 
the creditor or any part of the lending operations of the creditor in 
order to determine the level or effectiveness of compliance with this 
title by the creditor, any report or results of such a test or review 
may not be reviewed, obtained, examined, or otherwise acquired or used 
by any department or agency authorized to enforce this 
title.'';</DELETED>
        <DELETED>    (2) in section 706(g), by adding at the end the 
        following: ``An agency may refer a matter to the Attorney 
        General under this subsection if the creditor has already 
        identified the matter as a possible violation of this title as 
        the result of internal review, self-testing, compliance review, 
        or other audit or review procedure instituted by the creditor 
        to determine compliance with this title. Nothing in this 
        subsection shall limit the authority of the agency to enforce 
        this title under any other provision of law.''; and</DELETED>
        <DELETED>    (3) in section 706(k)--</DELETED>
                <DELETED>    (A) by redesignating subparagraphs (1) 
                through (3) as subparagraphs (A) through (C), 
                respectively, and indenting appropriately;</DELETED>
                <DELETED>    (B) by striking ``Whenever'' and inserting 
                the following:</DELETED>
        <DELETED>    ``(1) In general.--Whenever''; and</DELETED>
                <DELETED>    (C) by adding at the end the following new 
                paragraph:</DELETED>
        <DELETED>    ``(2) Limitation.--An agency referred to in 
        paragraph (1), (2), or (3) of section 704(a) may notify the 
        Secretary of Housing and Urban Development or the applicant of 
        a violation of this title or of the Fair Housing Act if the 
        creditor has already identified the matter as a possible 
        violation of either this title or the Fair Housing Act as a 
        result of internal review, self-testing, compliance review, or 
        other audit or review procedure instituted by the creditor to 
        determine compliance with this title. Nothing in this 
        subsection shall limit the authority of the agency to enforce 
        this title under any other provision of law.''.</DELETED>
<DELETED>    (b) Fair Housing.--The Fair Housing Act (42 U.S.C. 3601 et 
seq.) is amended by inserting after section 814 the following new 
section:</DELETED>

<DELETED>``SEC. 814A. ENCOURAGEMENT TO SELF-TEST FOR FAIR HOUSING ACT 
              COMPLIANCE.</DELETED>

<DELETED>    ``If any person conducts, or authorizes an independent 
third party to conduct, a test or review of the residential real estate 
or real estate-related activities of the person, or any part thereof, 
in order to determine the level or effectiveness of compliance with 
this Act by that person, any report or results of such a test or review 
may not be reviewed, obtained, examined, or otherwise acquired or used 
by any department or agency authorized to enforce this 
Act.''.</DELETED>

<DELETED>SEC. 303. EXEMPTION FOR SAVINGS INSTITUTIONS SERVING MILITARY 
              PERSONNEL.</DELETED>

<DELETED>    Section 10(m)(3)(F) of the Home Owners' Loan Act (12 
U.S.C. 1467a(m)(3)(F)) is amended to read as follows:</DELETED>
                <DELETED>    ``(F) Exemption for specialized savings 
                associations serving certain military personnel.--
                Subparagraph (A) does not apply to a savings 
                association subsidiary of a savings and loan holding 
                company if not less than 90 percent of the customers of 
                the savings and loan holding company and the 
                subsidiaries and affiliates of such company are active 
                or former officers in the United States military 
                services or the widows, widowers, divorced spouses, or 
                current or former dependents of such 
                officers.''.</DELETED>

<DELETED>SEC. 304. QUALIFIED THRIFT INVESTMENT AMENDMENTS.</DELETED>

<DELETED>    (a) Credit Cards.--Section 5(b) of the Home Owners' Loan 
Act (12 U.S.C. 1464(b)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (4); and</DELETED>
        <DELETED>    (2) by redesignating paragraph (5) as paragraph 
        (4).</DELETED>
<DELETED>    (b) Loans or Investments Without Percentage of Assets 
Limitation.--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 
subparagraphs:</DELETED>
                <DELETED>    ``(T) Credit card loans.--Loans made 
                through credit cards or credit card accounts.</DELETED>
                <DELETED>    ``(U) Education loans.--Loans made for the 
                payment of educational expenses.''.</DELETED>
<DELETED>    (c) Commercial and Other Loans.--Section 5(c)(2)(A) of the 
Home Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by adding at 
the end the following: ``No loan may be made under this subparagraph in 
an amount that exceeds 20 percent of the total assets of the Federal 
savings association, and any loan amount in excess of 10 percent of the 
total assets of the Federal savings association may be invested only in 
small business loans, as such term is defined by the 
Director.''.</DELETED>
<DELETED>    (d) Loans or Investments Limited to 5 Percent of Assets.--
Section 5(c)(3) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(3)) is 
amended--</DELETED>
        <DELETED>    (1) by striking subparagraph (A); and</DELETED>
        <DELETED>    (2) by redesignating subparagraphs (B), (C), and 
        (D) as subparagraphs (A), (B), and (C), respectively.</DELETED>
<DELETED>    (e) Qualified Thrift Lender Test.--Section 10(m)(1) of the 
Home Owners' Loan Act (12 U.S.C. 1467a(m)(1)) is amended--</DELETED>
        <DELETED>    (1) by redesignating subparagraph (B) as clause 
        (ii);</DELETED>
        <DELETED>    (2) in subparagraph (A), by striking ``(A) the 
        savings'' and inserting ``(B)(i) the savings''; and</DELETED>
        <DELETED>    (3) by inserting after ``if--'' the following new 
        subparagraph:</DELETED>
                <DELETED>    ``(A) the savings association qualifies as 
                a domestic building and loan association, as such term 
                is defined in section 7701(a)(19) of the Internal 
                Revenue Code of 1986; or''.</DELETED>
<DELETED>    (f) Definition.--Section 10(m)(4) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(m)(4)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (C)--</DELETED>
                <DELETED>    (A) in clause (ii), by adding at the end 
                the following new subclause:</DELETED>
                                <DELETED>    ``(VII) Loans for 
                                educational purposes, loans to small 
                                businesses, and loans made through 
                                credit cards or credit card 
                                accounts.'';</DELETED>
                <DELETED>    (B) in clause (iii), by striking subclause 
                (VI) and inserting the following:</DELETED>
                                <DELETED>    ``(VI) Loans for personal, 
                                family, or household purposes (other 
                                than loans for personal, family, or 
                                household purposes covered by clause 
                                (ii)(VII)).''; and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        subparagraphs:</DELETED>
                <DELETED>    ``(D) Credit card.--The Director shall 
                issue such regulations as may be necessary to define 
                the term `credit card'.</DELETED>
                <DELETED>    ``(E) Small business.--The Director shall 
                issue such regulations a may be necessary to define the 
                term `small business'.''.</DELETED>

<DELETED>SEC. 305. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN 
              BANKS.</DELETED>

<DELETED>    The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended 
by inserting after section 11A the following new section:</DELETED>

<DELETED>SEC. 11B. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN 
              BANKS.</DELETED>

<DELETED>    ``Any policy or regulation adopted by the Board of 
Governors of the Federal Reserve System governing payment system risk 
or intraday credit shall--</DELETED>
        <DELETED>    ``(1) include--</DELETED>
                <DELETED>    ``(A) the establishment of net debit caps 
                appropriate to the credit quality of each Federal Home 
                Loan Bank; and</DELETED>
                <DELETED>    ``(B) the imposition of normal fees for 
                daylight overdrafts, calculated in the same manner as 
                fees for other users; or</DELETED>
        <DELETED>    ``(2) exempt Federal Home Loan Banks from such 
        policy or regulation.''.</DELETED>

<DELETED>SEC. 306. APPLICATION FOR MEMBERSHIP IN THE FEDERAL HOME LOAN 
              BANK SYSTEM.</DELETED>

<DELETED>     Section 4(b) of the Federal Home Loan Bank Act (12 U.S.C. 
1424(b)) is amended to read as follows:</DELETED>
<DELETED>    ``(b) Membership Based on Convenience.--</DELETED>
        <DELETED>    ``(1) Application process.--An institution 
        eligible to become a member under this section may become a 
        member by submitting an application for membership--</DELETED>
                <DELETED>    ``(A) to the Bank in the district in which 
                the principal place of business of the institution is 
                located; or</DELETED>
                <DELETED>    ``(B) if the Board determines that such 
                action is necessary for the convenience of the 
                institution, to the Bank in any district that is 
                adjacent to the district in which the principal place 
                of business of the institution is located.</DELETED>
        <DELETED>    ``(2) Approval of application.--An application for 
        membership submitted under this subsection shall be approved by 
        the Bank if, in the judgment of the Bank, the applicant meets 
        the criteria for eligibility contained in this 
        section.''.</DELETED>

<DELETED>SEC. 307. AUTHORITY FOR FEDERAL HOME LOAN BANKS TO SELECT 
              EXTERNAL AUDITORS.</DELETED>

<DELETED>    Section 11(j) of the Federal Home Loan Bank Act (12 U.S.C. 
1431(j)) is amended--</DELETED>
        <DELETED>    (1) by striking ``(j) Notwithstanding'' and 
        inserting the following:</DELETED>
<DELETED>    ``(j) Audits.--</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(2) Selection of external auditors.--</DELETED>
                <DELETED>    ``(A) In general.--The Federal Home Loan 
                Banks shall, on an annual basis, contract for an annual 
                audit with a single auditor.</DELETED>
                <DELETED>    ``(B) Role of the board.--Notwithstanding 
                any other provision of law, the Board shall not 
                participate in any audit or audit contracting process 
                under this paragraph, except that the Board may 
                establish requirements for audit contracts and 
                accounting standards used in connection with any audit 
                under this paragraph.''.</DELETED>

<DELETED>SEC. 308. LIMITED PURPOSE BANK GROWTH CAP RELIEF.</DELETED>

<DELETED>    Section 4(f)(3)(B) of the Bank Holding Company Act of 1956 
(12 U.S.C. 1843(f)(3)(B)) is amended--</DELETED>
        <DELETED>    (1) in clause (ii), by adding ``or'' at the 
        end;</DELETED>
        <DELETED>    (2) in clause (iii), by striking ``; or'' at the 
        end and inserting a period; and</DELETED>
        <DELETED>    (3) by striking clause (iv).</DELETED>

      <DELETED>Subtitle B--Disincentives to Risk-Taking</DELETED>

<DELETED>SEC. 311. DUE PROCESS PROTECTIONS.</DELETED>

<DELETED>    (a) Attachment of Assets.--Section 11(d)(19) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(d)(19)) is amended--
</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking ``without 
        regard'' and all that follows through ``immediate''; 
        and</DELETED>
        <DELETED>    (2) in subparagraph (B), by striking ``(as 
        modified with respect to such proceeding by subparagraph 
        (A))''.</DELETED>
<DELETED>    (b) Cease-and-Desist Proceedings.--Section 8(b)(6) of the 
Federal Deposit Insurance Act (12 U.S.C. 1818(b)(6)) is amended--
</DELETED>
        <DELETED>    (1) in subparagraph (D), by striking ``and'' at 
        the end;</DELETED>
        <DELETED>    (2) in subparagraph (E), by striking ``and'' at 
        the end;</DELETED>
        <DELETED>    (3) by redesignating subparagraph (F) as 
        subparagraph (G); and</DELETED>
        <DELETED>    (4) by inserting after subparagraph (E) the 
        following new subparagraph:</DELETED>
                <DELETED>    ``(F) prohibit such party from 
                withdrawing, transferring, removing, dissipating, or 
                disposing of any funds, assets, or other property if 
                injury, loss, or damage to such property is irreparable 
                and immediate; and''.</DELETED>
<DELETED>    (c) Prejudgment Attachment.--</DELETED>
        <DELETED>    (1) Insured depository institutions.--Section 
        8(i)(4)(B) of the Federal Deposit Insurance Act (12 U.S.C. 
        1818(i)) is amended to read as follows:</DELETED>
                <DELETED>    ``(B) Standard.--Rule 65 of the Federal 
                Rules of Civil Procedure shall apply with respect to 
                any proceeding under this paragraph.''.</DELETED>
        <DELETED>    (2) Insured credit unions.--</DELETED>
                <DELETED>    (A) Powers and duties of board as 
                conservator or liquidating agent.--Section 207(b)(2)(H) 
                of the Federal Credit Union Act (12 U.S.C. 
                1787(b)(2)(H)) is amended--</DELETED>
                        <DELETED>    (i) in clause (i), by striking 
                        ``without regard'' and all that follows through 
                        ``immediate''; and</DELETED>
                        <DELETED>    (ii) in clause (ii), by striking 
                        ``(as modified with respect to such proceeding 
                        by clause (i))''.</DELETED>
                <DELETED>    (B) Affirmative action to correct 
                conditions resulting from violations or practices.--
                Section 206(e)(3) of the Federal Credit Union Act (12 
                U.S.C. 1786(e)(3)) is amended--</DELETED>
                        <DELETED>    (i) in subparagraph (D), by 
                        striking ``and'' at the end;</DELETED>
                        <DELETED>    (ii) in subparagraph (E), by 
                        striking ``and'' at the end;</DELETED>
                        <DELETED>    (iii) by redesignating 
                        subparagraph (F) as subparagraph (G); 
                        and</DELETED>
                        <DELETED>    (iv) by inserting after 
                        subparagraph (E) the following new 
                        subparagraph:</DELETED>
                <DELETED>    ``(F) refrain from withdrawing, 
                transferring, removing, dissipating, or disposing of 
                any funds, assets, or other property if injury, loss, 
                or damage to such property is irreparable and 
                immediate; and''.</DELETED>

  <DELETED>Subtitle C--Miscellaneous Nonsupervisory Reforms</DELETED>

<DELETED>SEC. 321. LIABILITY FOR UNAUTHORIZED USE OF CREDIT 
              CARDS.</DELETED>

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

<DELETED>SEC. 322. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.</DELETED>

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic Growth 
and Regulatory Paperwork Reduction Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

        TITLE I--STREAMLINING THE HOME MORTGAGE LENDING PROCESS

Sec. 101. Coordination of the Truth in Lending Act and the Real Estate 
                            Settlement Procedures Act of 1974.
Sec. 102. Elimination of redundant regulators.
Sec. 103. General exemption authority for loans.
Sec. 104. Reductions in Real Estate Settlement Procedures Act of 1974 
                            regulatory burdens.
Sec. 105. Co-branding and affinity group endorsements.
Sec. 106. Waiver for certain borrowers.
Sec. 107. Alternative disclosures for adjustable rate mortgages.
Sec. 108. Restitution for violations of the Truth in Lending Act.

              TITLE II--STREAMLINING GOVERNMENT REGULATION

    Subtitle A--Eliminating Unnecessary Regulatory Requirements and 
                               Procedures

Sec. 201. Elimination of certain filing and approval requirements for 
                            certain insured depository institutions.
Sec. 202. Elimination of redundant approval requirement for Oakar 
                            transactions.
Sec. 203. Elimination of duplicative requirements imposed upon bank 
                            holding companies.
Sec. 204. Elimination of the per branch capital requirement for 
                            national banks and State member banks.
Sec. 205. Elimination of branch application requirements for automatic 
                            teller machines.
Sec. 206. Elimination of requirement for approval of investments in 
                            bank premises for well capitalized and well 
                            managed banks.
Sec. 207. Elimination of approval requirement for divestitures.
Sec. 208. Streamlined nonbanking acquisitions by well capitalized and 
                            well managed banking organizations.
Sec. 209. Elimination of unnecessary filing for officer and director 
                            appointments.
Sec. 210. Amendments to the Depository Institution Management 
                            Interlocks Act.
Sec. 211. Elimination of recordkeeping and reporting requirements for 
                            officers.
Sec. 212. Consolidation of appraisal subcommittee; transfer of 
                            functions.
Sec. 213. Branch closures.
Sec. 214. Foreign banks.
Sec. 215. Disposition of foreclosed assets.

         Subtitle B--Eliminating Unnecessary Regulatory Burdens

Sec. 221. Small bank examination cycle.
Sec. 222. Required review of regulations.
Sec. 223. Repeal of identification of nonbank financial institution 
                            customers.
Sec. 224. Repeal of commercial loan reporting requirements.
Sec. 225. Increase in home mortgage disclosure exemption threshold.
Sec. 226. Elimination of stock loan reporting requirement.
Sec. 227. Credit availability assessment.

                 Subtitle C--Regulatory Micromanagement

Sec. 241. National bank directors.
Sec. 242. Paperwork reduction review.
Sec. 243. State bank representation on board of directors of the FDIC.
Sec. 244. Consultation among examiners.

 TITLE III--REGULATORY IMPACT ON COST OF CREDIT AND CREDIT AVAILABILITY

Sec. 301. Audit costs.
Sec. 302. Incentives for self-testing.
Sec. 303. Exemption for savings institutions serving military 
                            personnel.
Sec. 304. Qualified thrift investment amendments.
Sec. 305. Daylight overdrafts incurred by Federal Home Loan Banks.
Sec. 306. Application for membership in the Federal Home Loan Bank 
                            system.
Sec. 307. Authority for Federal Home Loan Banks to select external 
                            auditors.
Sec. 308. Limited purpose banks.
Sec. 309. Collateralization of advances to members.
Sec. 310. Increasing limit on total advances by the FHLB system to non-
                            QTL institutions.
Sec. 311. Fair debt collection practices.

                    TITLE IV--FAIR CREDIT REPORTING

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Furnishing consumer reports; use for employment purposes.
Sec. 404. Use of consumer reports for prescreening and direct 
                            marketing; prohibition on unauthorized or 
                            uncertified use of information.
Sec. 405. Consumer consent required to furnish consumer report 
                            containing medical information; furnishing 
                            consumer reports for commercial 
                            transactions.
Sec. 406. Obsolete information and information contained in consumer 
                            reports.
Sec. 407. Compliance procedures.
Sec. 408. Consumer disclosures.
Sec. 409. Procedures in case of the disputed accuracy of any 
                            information in a consumer's file.
Sec. 410. Charges for certain disclosures.
Sec. 411. Duties of users of consumer reports.
Sec. 412. Civil liability.
Sec. 413. Responsibilities of persons who furnish information to 
                            consumer reporting agencies.
Sec. 414. Investigative consumer reports.
Sec. 415. Increased criminal penalties for obtaining information under 
                            false pretenses.
Sec. 416. Administrative enforcement.
Sec. 417. State enforcement of Fair Credit Reporting Act.
Sec. 418. Federal Reserve Board authority.
Sec. 419. Preemption of State law.
Sec. 420. Action by FTC and Federal Reserve Board.
Sec. 421. Amendment to Fair Debt Collection Practices Act.
Sec. 422. Furnishing consumer reports for certain purposes relating to 
                            child support.
Sec. 423. Disclosure of information and consumer reports to FBI for 
                            counterintelligence purposes.
Sec. 424. Effective date.
Sec. 425. Relationship to other law.

 TITLE V--ASSET CONSERVATION, LENDER LIABILITY, AND DEPOSIT INSURANCE 
                               PROTECTION

Sec. 501. Short title.
Sec. 502. Federal Deposit Insurance Act amendment.
Sec. 503. CERCLA amendments.
Sec. 504. Solid Waste Disposal Act amendments.
Sec. 505. Effective date.

              TITLE VI--STUDIES AND REPORTS; MISCELLANEOUS

Sec. 601. Electronic Fund Transfer Act clarification.
Sec. 602. Treatment of claims arising from breach of post-appointment 
                            agreements.
Sec. 603. Fictitious financial instruments.
Sec. 604. Amendments to the Truth in Savings Act.
Sec. 605. Consumer Leasing Act amendments.
Sec. 606. Credit union study.
Sec. 607. Report on the reconciliation of differences between 
                            regulatory accounting principles and 
                            generally accepted accounting principles.
Sec. 608. State-by-state and metropolitan area-by-metropolitan area 
                            study of bank fees.
Sec. 609. Prospective application of gold clauses in contracts.

SEC. 2. DEFINITIONS.

    Unless otherwise specified in this Act, for purposes of this Act--
            (1) the term ``Appraisal Subcommittee'' means the Appraisal 
        Subcommittee established under section 1011 of the Federal 
        Financial Institutions Examination Council Act of 1978 (as in 
        existence on the day before the date of enactment of this 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 ``Board'' means the Board of Governors of the 
        Federal Reserve System;
            (4) the term ``Corporation'' means the Federal Deposit 
        Insurance Corporation;
            (5) the term ``Council'' means the Federal Financial 
        Institutions Examination Council established under section 1004 
        of the Federal Financial Institutions Examination Council Act 
        of 1978;
            (6) the term ``insured credit union'' has the same meaning 
        as in section 101 of the Federal Credit Union Act; and
            (7) the term ``insured depository institution'' has the 
        same meaning as in section 3 of the Federal Deposit Insurance 
        Act.

        TITLE I--STREAMLINING THE HOME MORTGAGE LENDING PROCESS

SEC. 101. COORDINATION OF THE TRUTH IN LENDING ACT AND THE REAL ESTATE 
              SETTLEMENT PROCEDURES ACT OF 1974.

    (a) Amendments to Truth in Lending Act.--Section 105 of the Truth 
in Lending Act (15 U.S.C. 1604) is amended by adding at the end the 
following new subsection:
    ``(e) Authority To Eliminate, Modify, or Simplify and Improve 
Disclosure Requirements.--
            ``(1) In general.--The Board shall, by regulation, 
        eliminate, modify or simplify, and improve any disclosure 
        required by this title, including the content and timing of the 
        disclosure, if such action would make disclosures and timing of 
        disclosures required by this title uniform with other laws 
        relating to the disclosure of information in connection with 
        credit transactions, including the Real Estate Settlement 
        Procedures Act of 1974, while furthering the purposes of this 
        title.
            ``(2) Limitation.--No disclosure requirement may be imposed 
        under this subsection unless such requirement would have the 
        effect of eliminating, modifying or simplifying, and improving 
        any disclosure required under this title.''.
    (b) Amendments to Real Estate Settlement Procedures Act of 1974.--
Section 19 of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2617) is amended by adding at the end the following new 
subsection:
    ``(d) Authority To Eliminate, Modify, or Simplify and Improve 
Disclosure Requirements.--
            ``(1) In general.--The Board shall, by regulation, 
        eliminate, modify or simplify, and improve any disclosure 
        required by this Act, including the content and timing of the 
        disclosure, if such action would--
                    ``(A) make disclosures and timing of disclosures 
                required by this title uniform with other laws relating 
                to the disclosure of information in connection with 
                credit transactions, including the Truth in Lending 
                Act; or
                    ``(B) further the purposes of this Act.
            ``(2) Limitation.--No disclosure requirement may be imposed 
        under this subsection unless such requirement would have the 
        effect of eliminating, modifying or simplifying, and improving 
        any disclosure required under this Act.''.

SEC. 102. ELIMINATION OF REDUNDANT REGULATORS.

    (a) Definition.--Section 3 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2602) is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(9) the term `Board' means the Board of Governors of the 
        Federal Reserve System; and
            ``(10) the term `appropriate Federal banking agency' has 
        the same meaning as in section 3 of the Federal Deposit 
        Insurance Act.''.
    (b) Conforming Amendments.--The Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2601 et seq.) is amended--
            (1) in section 4, by striking ``Secretary'' each place such 
        term appears and inserting ``Board'';
            (2) in section 5, by striking ``Secretary'' each place such 
        term appears and inserting ``Board'';
            (3) in section 6, by striking ``Secretary'' each place such 
        term appears and inserting ``Board'';
            (4) in section 8(d)(4), by striking ``Secretary'' and 
        inserting ``Secretary or the appropriate Federal banking 
        agency, as provided in section 20,'';
            (5) in section 10(c)(1)(C), by striking ``Not later'' and 
        all that follows through ``Act, the Secretary'', and inserting 
        ``The Board'';
            (6) in section 16, by striking ``the Secretary'' and 
        inserting ``the Secretary or the appropriate Federal banking 
        agency'';
            (7) in section 18--
                    (A) by striking ``Secretary is authorized to'' and 
                inserting ``Board or Secretary, as applicable, may''; 
                and
                    (B) by striking ``Secretary'' each place such term 
                appears and inserting ``Secretary or the Board''; and
            (8) in section 19, by amending the section heading to read 
        as follows:

``SEC. 19. AUTHORITY OF THE SECRETARY AND THE BOARD.''.

    (c) Regulations.--
            (1) In general.--Section 19(a) of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 2617(a)) is 
        amended to read as follows:
    ``(a) Regulations.--
            ``(1) In general.--The Board or the Secretary shall 
        prescribe such regulations as may be necessary to carry out 
        this title, as set forth in paragraph (3).
            ``(2) Specifications.--The regulations promulgated under 
        paragraph (1)--
                    ``(A) may contain such classifications, 
                differentiations, or other provisions, and may provide 
                for such adjustments and exceptions for any class of 
                transactions, as the Board or the Secretary, as 
                appropriate, determines to be necessary or proper to--
                            ``(i) effectuate the purposes of this 
                        title;
                            ``(ii) prevent circumvention or evasion of 
                        this title; or
                            ``(iii) facilitate compliance with this 
                        title; and
                    ``(B) shall minimize the burdens and cost imposed 
                upon creditors and shall ensure that costs, burdens, 
                and complexities to consumers are reduced, while 
                necessary information regarding the cost of financing 
                to consumers is provided.
            ``(3) Application.--
                    ``(A) Board.--The authority of the Board under 
                paragraph (1) shall apply with respect to--
                            ``(i) sections 4, 5, 6, 10, and 12; and
                            ``(ii) sections 3, 7, 17, 18, and 19, to 
                        the extent that such sections are applicable 
                        with respect to the sections described in 
                        clause (i).
                    ``(B) Secretary.--The authority of the Secretary 
                under paragraph (1) shall apply with respect to--
                            ``(i) sections 8 and 9; and
                            ``(ii) sections 3, 7, 17, 18, and 19, to 
                        the extent such sections are applicable with 
                        respect to the sections described in clause 
                        (i).''.
            (2) Conforming amendments.--Section 19 of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 2617) is amended--
                    (A) in subsection (b), by inserting ``, the 
                Board,'' after ``the Secretary'';
                    (B) in subsection (c)(1)--
                            (i) by striking ``Secretary may'' and 
                        inserting ``Secretary and the appropriate 
                        Federal banking agency may'';
                            (ii) by striking ``Secretary is'' and 
                        inserting ``Secretary and the appropriate 
                        Federal banking agency are''; and
                            (iii) by striking ``Secretary deems'' and 
                        inserting ``Secretary or the appropriate 
                        Federal banking agency deems''; and
                    (C) in subsection (c)(2), by striking ``Secretary'' 
                and inserting ``Secretary or the appropriate Federal 
                banking agency''.
    (d) Administrative Enforcement.--The Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended by adding at 
the end the following new section:

``SEC. 20. ADMINISTRATIVE ENFORCEMENT.

    ``(a) In General.--Compliance with the requirements imposed under 
this title shall be enforced--
            ``(1) with respect to--
                    ``(A) any national bank or any Federal branch or 
                Federal agency of a foreign bank, by the Office of the 
                Comptroller of the Currency;
                    ``(B) any member bank of the Federal Reserve System 
                (other than a national bank), any branch or agency of a 
                foreign bank (other than a Federal branch or Federal 
                agency, or insured State branch of a foreign bank), any 
                commercial lending company owned or controlled by one 
                or more foreign banks, or any organization operating 
                under section 25 or 25A of the Federal Reserve Act, by 
                the Board;
                    ``(C) any bank insured under the Federal Deposit 
                Insurance Act (other than a member of the Federal 
                Reserve System) or any insured State branch of a 
                foreign bank, by the Board of Directors of the Federal 
                Deposit Insurance Corporation; and
                    ``(D) any savings association the deposits of which 
                are insured under the Federal Deposit Insurance Act, by 
                the Director of the Office of Thrift Supervision;
            ``(2) under the Federal Credit Union Act, by the 
        Administrator of the National Credit Union Administration with 
        respect to any Federal credit union;
            ``(3) under the Packers and Stockyards Act, 1921 (except as 
        provided in section 406 of such Act), by the Secretary of 
        Agriculture with respect to any activities subject to such Act; 
        and
            ``(4) under the Farm Credit Act of 1971, by the Farm Credit 
        Administration with respect to any institution referred to in 
        section 1.2(a) of that Act.
    ``(b) Limitations.--In exercising their powers under subsection 
(a), the appropriate Federal banking agencies shall not impose any 
penalties that exceed those provided for in this title.
    ``(c) HUD Enforcement.--Except to the extent that the enforcement 
of the requirements imposed under this title is specifically committed 
to another agency of the Federal Government under subsection (a), the 
Secretary of Housing and Urban Development shall enforce such 
requirements.''.
    (e) Transfer of Authority.--Authority to carry out the Real Estate 
Settlement Procedures Act of 1974 shall be transferred to the Board, as 
provided in the amendments made by subsections (b) and (c) of this 
section, 180 days after the enactment of this Act. Upon transfer of 
authority, all existing regulations shall remain in effect until such 
time as the Board modifies them. Not later than 180 days after the date 
of transfer, the Board shall publish any proposed changes to the 
regulations required by this Act. During the 180-day period beginning 
on the date of enactment of this Act, the Secretary of the Treasury 
shall not modify, repeal, or add any regulations that will be 
transferred to the Board, as appropriate.

SEC. 103. GENERAL EXEMPTION AUTHORITY FOR LOANS.

    (a) Regulatory Flexibility.--Section 104 of the Truth in Lending 
Act (15 U.S.C. 1603) is amended--
            (1) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7), respectively; and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Transactions for which the Board, by rule, determines 
        that coverage under this title is not necessary to carry out 
        the purposes of this title.''.
    (b) Exemption Authority.--Section 105 of the Truth in Lending Act 
(15 U.S.C. 1604) is amended by adding at the end the following new 
subsection:
    ``(f) Exemption Authority.--
            ``(1) In general.--The Board may exempt from all or part of 
        this title any class of transactions for which, in the 
        determination of the Board, coverage under all or part of this 
        title does not provide a meaningful benefit to consumers in the 
        form of useful information or protection.
            ``(2) Factors for consideration.--In determining which 
        classes of transactions to exempt in whole or in part under 
        paragraph (1), the Board shall consider, among other factors--
                    ``(A) the amount of the loan or closing costs and 
                whether the disclosures, right of rescission, and other 
                provisions are necessary, particularly for small loans, 
                as determined by the Board;
                    ``(B) whether the requirements of this title 
                complicate, hinder, or make more expensive the credit 
                process for the class of transactions;
                    ``(C) the status of the borrower, including--
                            ``(i) any related financial arrangements of 
                        the borrower, as determined by the Board;
                            ``(ii) the financial sophistication of the 
                        borrower relative to the type of transaction; 
                        and
                            ``(iii) the importance to the borrower of 
                        the credit and related supporting property, as 
                        determined by the Board;
                    ``(D) whether the loan is secured by the principal 
                residence of the consumer; and
                    ``(E) whether the goal of consumer protection would 
                be undermined by such an exemption.''.

SEC. 104. REDUCTIONS IN REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 
              REGULATORY BURDENS.

    (a) Unnecessary Disclosure.--Section 6(a) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2605(a)) is amended to 
read as follows:
    ``(a) Disclosure to Applicant Relating to Assignment, Sale, or 
Transfer of Loan Servicing.--Each person who makes a federally related 
mortgage loan shall disclose to each person who applies for the loan, 
at the time of application for the loan, whether the servicing of the 
loan may be assigned, sold, or transferred to any other person at any 
time while the loan is outstanding.''.
    (b) Second Mortgages.--Section 8 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2607) is amended by inserting 
``(other than a subordinate lien)'' after ``federally related 
mortgages'' each place such term appears.
    (c) Consistency of Real Estate Settlement Procedures Act and Truth 
in Lending Act Exemption of Business Loans.--Section 7 of the Real 
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2606) is amended--
            (1) by striking ``This Act'' and inserting the following:
    ``(a) In General.--This Act''; and
            (2) by adding at the end the following new subsection:
    ``(b) Interpretation.--In promulgating regulations under section 
19(a), the Board shall ensure that, with respect to subsection (a) of 
this section, the exemption for credit transactions involving 
extensions of credit primarily for business, commercial, or 
agricultural purposes, as provided in section 7(1) of the Real Estate 
Settlement Procedures Act of 1974 shall be the same as the exemption 
for such credit transactions under section 104(1) of the Truth in 
Lending Act.''.

SEC. 105. CO-BRANDING AND AFFINITY GROUP ENDORSEMENTS.

    (a) Compliance With Other Requirements.--Section 3(3) of the Real 
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(3)) is amended 
by inserting before the semicolon ``, but does not include an 
endorsement which does not violate the provisions of section 8(c)(4)''.
    (b) Payments.--Section 8(c) of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2607(c)) is amended--
            (1) by striking ``(4) controlled'' and inserting ``(5) 
        controlled'';
            (2) by striking ``or (5)'' and inserting ``or (6)''; and
            (3) by inserting after paragraph (3), the following new 
        paragraph: ``(4) a payment to a person or affinity group for or 
        in connection with an endorsement (written or oral), either 
        through an advertisement or through a communication addressed 
        to a person by name or mailing address, of the products or 
        services of a settlement service provider, if the person or 
        affinity group making the endorsement is not itself providing 
        settlement services in connection with the real estate 
        settlement involving the person to whom such endorsement was 
        addressed;''.

SEC. 106. WAIVER FOR CERTAIN BORROWERS.

    Section 105 of the Truth in Lending Act (15 U.S.C. 1604) is amended 
by adding at the end the following new subsection:
    ``(g) Waiver for Certain Borrowers.--
            ``(1) In general.--The Board, by regulation, may exempt 
        from the requirements of this title certain credit transactions 
        if--
                    ``(A) the transaction involves a consumer--
                            ``(i) with an annual earned income of more 
                        than $200,000; or
                            ``(ii) having net assets in excess of 
                        $1,000,000 at the time of the transaction; and
                    ``(B) a waiver that is handwritten, signed, and 
                dated by the consumer is first obtained from the 
                consumer.
            ``(2) Adjustments by the board.--The Board, at its 
        discretion, may adjust the annual earned income and net asset 
        requirements of paragraph (1) for inflation.''.

SEC. 107. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

    Section 128(a) of the Truth in Lending Act (15 U.S.C. 1638(a)) is 
amended by adding at the end the following new paragraph:
            ``(14) In any variable interest rate residential mortgage 
        transaction, at the option of the creditor, a statement that 
        the periodic payments may increase or decrease substantially, 
        and the maximum interest rate and payment for a $10,000 loan 
        originated at a recent interest rate, as determined by the 
        Board, assuming the maximum periodic increases in rates and 
        payments under the program, or a historical example 
        illustrating the effects of interest rate changes implemented 
        according to the loan program.''.

SEC. 108. RESTITUTION FOR VIOLATIONS OF THE TRUTH IN LENDING ACT.

    Section 108(e)(3) of the Truth in Lending Act (15 U.S.C. 2602(3)) 
is amended--
            (1) by striking ``ordered (A) if'' and inserting the 
        following: ``ordered--
            ``(A) if'';
            (2) by striking ``may require a partial'' and inserting 
        ``may--
                    ``(i) require a partial'';
            (3) by striking ``, except that with respect'' and all that 
        follows through ``Act, the agency shall require'' and inserting 
        ``; or
                    ``(ii) require'';
            (4) by striking ``reasonable, (B) the'' and inserting the 
        following: ``reasonable, if (in the case of an agency referred 
        to in paragraph (1), (2), or (3) of subsection (a)), the agency 
        determines that a partial adjustment or making partial payments 
        over an extended period is necessary to avoid causing the 
        creditor to become undercapitalized pursuant to section 38 of 
        the Federal Deposit Insurance Act;
            ``(B) the''; and
            (5) by striking ``(C) except'' and inserting the following:
            ``(C) except''.

              TITLE II--STREAMLINING GOVERNMENT REGULATION

    Subtitle A--Eliminating Unnecessary Regulatory Requirements and 
                               Procedures

SEC. 201. ELIMINATION OF CERTAIN FILING AND APPROVAL REQUIREMENTS FOR 
              CERTAIN INSURED DEPOSITORY INSTITUTIONS.

    Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)) is amended by adding at the end the following new paragraph:
    ``(12) Exceptions.--No prior approval is required under paragraph 
(2) for any merger, consolidation, acquisition of assets, or assumption 
of liabilities involving only insured depository institutions that are 
subsidiaries of the same depository institution holding company, if--
            ``(A) the responsible agency would not be prohibited from 
        approving the transaction under section 44;
            ``(B) the acquiring, assuming, or resulting institution 
        complies with all applicable provisions of section 44 as if the 
        merger, consolidation, or acquisition were approved under this 
        subsection;
            ``(C) the acquiring, assuming, or resulting institution 
        provides written notification of the transaction to the 
        appropriate Federal banking agency for the institution not 
        later than 10 days prior to consummation of the transaction; 
        and
            ``(D) during the 10-day period beginning on the date on 
        which the notification required by subparagraph (C) was 
        received, the agency does not require the institution to submit 
        an application with respect to such transaction.''.

SEC. 202. ELIMINATION OF REDUNDANT APPROVAL REQUIREMENT FOR OAKAR 
              TRANSACTIONS.

    (a) In General.--Section 5(d)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1815(d)(3)) is amended--
            (1) in subparagraph (A), by striking ``with the prior 
        written approval of'' and inserting ``if the transaction is 
        approved by'';
            (2) in subparagraph (E)--
                    (A) by striking clauses (i) and (iv);
                    (B) by redesignating clauses (ii) and (iii) as 
                clauses (i) and (ii), respectively; and
                    (C) by adding at the end the following new clause:
                            ``(iii) Capital requirements.--A 
                        transaction described in this paragraph shall 
                        not be approved under section 18(c)(2) unless 
                        the acquiring, assuming, or resulting 
                        depository institution will meet all applicable 
                        capital requirements upon consummation of the 
                        transaction.'';
            (3) by striking subparagraph (G); and
            (4) by redesignating subparagraphs (H) through (J) as 
        subparagraphs (G) through (I), respectively.
    (b) Conforming Amendments.--
            (1) Revised statutes.--Section 5156A(b)(1) of the Revised 
        Statutes (12 U.S.C. 215c(b)(1)) is amended by striking ``by 
        section 5(d)(3) of the Federal Deposit Insurance Act or any 
        other'' and inserting ``under any''.
            (2) Home owners' loan act.--Section 10(s)(2)(A) of the Home 
        Owners' Loan Act (12 U.S.C. 1467a(s)(2)(A)) is amended by 
        striking ``under section 5(d)(3) of the Federal Deposit 
        Insurance Act or any other'' and inserting ``under any''.

SEC. 203. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED UPON BANK 
              HOLDING COMPANIES.

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

SEC. 204. ELIMINATION OF THE PER BRANCH CAPITAL REQUIREMENT FOR 
              NATIONAL BANKS AND STATE MEMBER BANKS.

    Section 5155(h) of the Revised Statutes (12 U.S.C. 36(h)) is 
amended to read as follows:
    ``(h) [Reserved.]''.

SEC. 205. ELIMINATION OF BRANCH APPLICATION REQUIREMENTS FOR AUTOMATIC 
              TELLER MACHINES.

    (a) ``Branch'' Under National Bank Act.--Section 5155(j) of the 
Revised Statutes (12 U.S.C. 36(j)) is amended by adding at the end the 
following: ``The term `branch', as used in this section, does not 
include an automated teller machine or a remote service unit.''.
    (b) ``Domestic Branch'' Under the Federal Deposit Insurance Act.--
Section 3(o) of the Federal Deposit Insurance Act (12 U.S.C. 1813(o)) 
is amended by striking ``lent; and the'' and inserting ``lent. The term 
`domestic branch' does not include an automated teller machine or a 
remote service unit. The''.

SEC. 206. ELIMINATION OF REQUIREMENT FOR APPROVAL OF INVESTMENTS IN 
              BANK PREMISES FOR WELL CAPITALIZED AND WELL MANAGED 
              BANKS.

    Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is amended 
to read as follows:

``SEC. 24A. INVESTMENT IN BANK PREMISES OR STOCK OF CORPORATION HOLDING 
              PREMISES.

    ``(a) Conditions of Investment.--No national bank or State member 
bank shall invest in bank premises, or in the stock, bonds, debentures, 
or other such obligations of any corporation holding the premises of 
such bank, or make loans to or upon the security of any such 
corporation--
            ``(1) unless the bank receives the prior approval of the 
        Comptroller of the Currency (with respect to a national bank) 
        or the Board (with respect to a State member bank);
            ``(2) unless the aggregate of all such investments and 
        loans, together with the amount of any indebtedness incurred by 
        any such corporation that is an affiliate of the bank, is less 
        than or equal to the amount of the capital stock of such bank; 
        or
            ``(3) unless--
                    ``(A) the aggregate of all such investments and 
                loans, together with the amount of any indebtedness 
                incurred by any such corporation that is an affiliate 
                of the bank, is less than or equal to 150 percent of 
                the capital and surplus of the bank; and
                    ``(B) the bank--
                            ``(i) has a CAMEL composite rating of 1 or 
                        2 under the Uniform Financial Institutions 
                        Rating System (or an equivalent rating under a 
                        comparable rating system) as of the most recent 
                        examination of such bank;
                            ``(ii) is well capitalized and will 
                        continue to be well capitalized after the 
                        investment or loan; and
                            ``(iii) provides notification to the 
                        Comptroller of the Currency (with respect to a 
                        national bank) or to the Board (with respect to 
                        a State member bank) not later than 30 days 
                        after making the investment or loan.
    ``(b) Definitions.--For purposes of this section--
            ``(1) the term `affiliate' has the same meaning as in 
        section 2 of the Banking Act of 1933; and
            ``(2) the term `well capitalized' has the same meaning as 
        in section 38(b) of the Federal Deposit Insurance Act.''.

SEC. 207. ELIMINATION OF APPROVAL REQUIREMENT FOR DIVESTITURES.

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

SEC. 208. STREAMLINED NONBANKING ACQUISITIONS BY WELL CAPITALIZED AND 
              WELL MANAGED BANKING ORGANIZATIONS.

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

SEC. 209. ELIMINATION OF UNNECESSARY FILING FOR OFFICER AND DIRECTOR 
              APPOINTMENTS.

    Section 32 of the Federal Deposit Insurance Act (12 U.S.C. 1831i) 
is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(or such other period, as 
                determined by the appropriate Federal banking agency)'' 
                after ``30 days'';
                    (B) by striking ``if the insured depository 
                institution or depository institution holding company'' 
                and inserting ``if'';
                    (C) by striking paragraphs (1) and (2);
                    (D) by redesignating paragraph (3) as paragraph 
                (1);
                    (E) in paragraph (1), as redesignated--
                            (i) by inserting ``the insured depository 
                        institution or depository institution holding 
                        company'' before ``is not in compliance''; and
                            (ii) by striking the period at the end and 
                        inserting ``; or''; and
                    (F) by adding at the end the following new 
                paragraph:
            ``(2) the agency determines, in connection with the review 
        by the agency of the plan required under section 38 or 
        otherwise, that such prior notice is appropriate.''; and
            (2) in subsection (b), by striking ``30-day period'' and 
        inserting ``notice period, not to exceed 90 days,''.

SEC. 210. AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGEMENT 
              INTERLOCKS ACT.

    (a) Dual Service Among Larger Organizations.--Section 204 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3203) is 
amended--
            (1) by striking ``$1,000,000,000'' and inserting 
        ``$2,500,000,000'';
            (2) by striking ``$500,000,000'' and inserting 
        ``$1,500,000,000''; and
            (3) by adding at the end the following: ``In order to allow 
        for inflation or market changes, the appropriate Federal 
        depository institutions regulatory agencies may, by regulation, 
        adjust, as necessary, the amount of total assets required for 
        depository institutions or depository holding companies under 
        this section.''.
    (b) Extension of Grandfather Exemption.--Section 206 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3205) is 
amended--
            (1) in subsection (a), by striking ``for a period of, 
        subject to the requirements of subsection (c), 20 years after 
        the date of enactment of this title'';
            (2) in subsection (b), by striking the second sentence; and
            (3) by striking subsection (c).
    (c) Rules or Regulations.--Section 209 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3207) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a) In General.--Rules'' and 
                inserting ``Rules'';
                    (B) by inserting ``, including rules or regulations 
                that permit service by a management official that would 
                otherwise be prohibited by section 203 or section 204, 
                if such service would not result in a monopoly or 
                substantial lessening of competition,'' after 
                ``title'';
                    (C) in paragraph (4)--
                            (i) by striking ``Federal Home Loan Bank 
                        Board'' and inserting ``Director of the Office 
                        of Thrift Supervision''; and
                            (ii) by striking ``Savings and Loan'' and 
                        inserting ``Deposit''; and
            (2) by striking subsections (b) and (c).

SEC. 211. ELIMINATION OF RECORDKEEPING AND REPORTING REQUIREMENTS FOR 
              OFFICERS.

    (a) Employee Benefit Plans.--Section 22(h)(2) of the Federal 
Reserve Act (12 U.S.C. 375b(2)) is amended--
            (1) by redesignating subparagraphs (A) through (C) as 
        clauses (i) through (iii), respectively, and indenting 
        appropriately;
            (2) by striking ``(2) Preferential terms prohibited.--'' 
        and inserting the following:
            ``(2) Preferential terms prohibited.--
                    ``(A) In general.--''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Exception.--Nothing in this paragraph shall 
                prohibit any extension of credit made pursuant to a 
                benefit or compensation program--
                            ``(i) that is widely available to employees 
                        of the member bank; and
                            ``(ii) that does not give preference to any 
                        officer, director, or principal shareholder of 
                        the member bank, or to any related interest of 
                        such person, over other employees of the member 
                        bank.''.
    (b) Exception for Extensions of Credit to Executive Officers and 
Directors of Affiliates.--Section 22(h)(8)(B) of the Federal Reserve 
Act (12 U.S.C. 375b(8)(B)) is amended to read as follows:
                    ``(B) Exception.--The Board may, by regulation, 
                make exceptions to subparagraph (A) for any executive 
                officer or director of a subsidiary of a company that 
                controls the member bank if--
                            ``(i) the executive officer or director 
                        does not have authority to participate, and 
                        does not participate, in major policymaking 
                        functions of the member bank; and
                            ``(ii) the assets of such subsidiary do not 
                        exceed 10 percent of the consolidated assets of 
                        a company that controls the member bank and 
                        such subsidiary (and is not controlled by any 
                        other company).''.

SEC. 212. CONSOLIDATION OF APPRAISAL SUBCOMMITTEE; TRANSFER OF 
              FUNCTIONS.

    (a) Purposes.--Consistent with the original purposes of title XI of 
the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989, the purposes of this section are--
            (1) to clarify that Federal oversight of appraisal 
        practices and standards is the responsibility of the Council; 
        and
            (2) to consolidate the functions of the Appraisal 
        Subcommittee into the Council in order to reduce the costs 
        incurred by maintaining a separate organization to carry out 
        that responsibility.
    (b) Consolidation of Appraisal Subcommittee.--
            (1) Amendment to federal financial institutions examination 
        council act of 1978.--Section 1011 of the Federal Financial 
        Institutions Examination Council Act of 1978 (12 U.S.C. 3310) 
        is repealed.
            (2) Amendments to the financial institutions reform, 
        recovery, and enforcement act of 1989.--
                    (A) Repeals.--The following sections of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 1811 et seq.) are 
                repealed:
                            (i) Section 1102 (Public Law 101-73; 103 
                        Stat. 511).
                            (ii) Section 1104 (12 U.S.C. 3333).
                            (iii) Section 1105 (12 U.S.C. 3334).
                            (iv) Section 1106 (12 U.S.C. 3335).
                            (v) Section 1108 (12 U.S.C. 3337).
                    (B) Definitions.--Section 1121 of the Financial 
                Institutions Reform, Recovery, and Enforcement Act of 
                1989 (12 U.S.C. 3350) is amended--
                            (i) by striking paragraphs (2) and (8);
                            (ii) by redesignating paragraphs (3) 
                        through (7) as paragraphs (2) through (6), 
                        respectively; and
                            (iii) by redesignating paragraphs (9) and 
                        (10) as paragraphs (7) and (8), respectively.
            (3) Conforming amendment to the national housing act.--
        Section 202(e) of the National Housing Act (12 U.S.C. 1708(e)) 
        is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) and 
                paragraphs (2) and (3), respectively.
    (c) Transfer of Functions.--
            (1) Amendments to the financial institutions reform, 
        recovery, and enforcement act of 1989.--
                    (A) Transfer of functions.--Section 1103 of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 3332) is amended--
                            (i) by striking ``sec. 1103.'' and 
                        inserting ``sec. 1102.'';
                            (ii) by striking ``Appraisal Subcommittee'' 
                        each place such term appears and inserting 
                        ``Federal Financial Institutions Examination 
                        Council''; and
                            (iii) in subsection (a)--
                                    (I) in paragraph (3), by inserting 
                                before the semicolon the following: ``, 
                                if the Council determines that 
                                maintaining a national registry under 
                                this paragraph will further the 
                                purposes of this title (as described in 
                                section 1101)''; and
                                    (II) by striking paragraph (4) and 
                                inserting the following:
            ``(4) include in its annual report to the Congress a 
        description of the manner in which the Council has performed 
        the functions assigned to the Council under this title.''.
                    (B) Roster of state certified or licensed 
                appraisers.--Section 1109 of the Financial Institutions 
                Reform, Recovery, and Enforcement Act of 1989 (12 
                U.S.C. 3338) is redesignated and amended to read as 
                follows:

``SEC. 1104. ROSTER OF STATE CERTIFIED OR LICENSED APPRAISERS.

    ``(a) In General.--Each State that has an appraiser certifying and 
licensing agency with a certification or license that meets the 
requirements of this title shall--
            ``(1) not less frequently than annually (unless a less 
        frequent interval is specified by the Council), transmit to the 
        Council a roster listing individuals who have received a State 
        certification or license in accordance with this title;
            ``(2) collect from such individuals who perform or seek to 
        perform appraisals in federally related transactions, an annual 
        registry fee, in an amount equal to $25 (or a lesser amount 
        determined by the Council) to support the activities of the 
        Council under this title; and
            ``(3) transmit all registry fees to the Council on an 
        annual basis.
    ``(b) Status of Fees.--Any registry fees collected and transmitted 
to the Council under subsection (a), and any funds of the Appraisal 
Subcommittee transferred to the Council pursuant to section 213 of the 
Economic Growth and Regulatory Paperwork Reduction Act of 1995, shall 
not constitute appropriated funds.''.
                    (C) Conforming amendments.--Title XI of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is 
                amended--
                            (i) in section 1116(e)--
                                    (I) by striking ``Appraisal 
                                Subcommittee'' and inserting ``Federal 
                                Financial Institutions Examination 
                                Council''; and
                                    (II) by striking ``the 
                                Subcommittee'' and inserting ``the 
                                Federal Financial Institutions 
                                Examination Council'';
                            (ii) in section 1118--
                                    (I) in the subsection heading for 
                                subsection (b), by striking ``by 
                                Appraisal Subcommittee''; and
                                    (II) by striking ``Appraisal 
                                Subcommittee'' each place such term 
                                appears and inserting ``Federal 
                                Financial Institutions Examination 
                                Council'';
                            (iii) in section 1119--
                                    (I) by striking ``Subject to the 
                                approval of the Council, the Appraisal 
                                Subcommittee'' each place such term 
                                appears and inserting ``The Council''; 
                                and
                                    (II) by striking ``Appraisal 
                                Subcommittee'' each place such term 
                                appears and inserting ``Federal 
                                Financial Institutions Examination 
                                Council'';
                            (iv) in section 1120, by striking 
                        ``Appraisal Subcommittee'' and inserting 
                        ``Federal Financial Institutions Examination 
                        Council'';
                            (v) in section 1122--
                                    (I) by striking ``Appraisal 
                                Subcommittee'' each place such term 
                                appears and inserting ``Council''; and
                                    (II) by striking subsection (f); 
                                and
                            (vi) by redesignating--
                                    (I) section 1107 as section 1103; 
                                and
                                    (II) sections 1110 through 1123 as 
                                sections 1105 through 1118, 
                                respectively.
            (2) Administrative provisions.--
                    (A) Transfer of financial assets and liabilities.--
                All funds held by, the right to collect all funds owed 
                to, and all obligations of the Appraisal Subcommittee 
                on the effective date of this section shall be 
                transferred to the Council.
                    (B) Appraisal foundation grants.--The Council may 
                make grants in such amounts as it deems appropriate to 
                the Appraisal Foundation to help defray costs of the 
                Foundation relating to the activities of its Appraisal 
                Standards and Appraiser Qualification Boards, but shall 
                discontinue such grants not later than December 31, 
                1998.
                    (C) Repayment of treasury loan.--Not later than 
                September 30, 1998, the Council shall repay to the 
                Secretary of the Treasury the funds specified in 
                section 1108 of the Financial Institutions Reform, 
                Recovery, and Enforcement Act of 1989 (as that section 
                existed on the day before the effective date of this 
                section), and the Secretary shall deposit such funds 
                into the General Fund of the Treasury of the United 
                States.
                    (D) Property transferred.--All property of the 
                Appraisal Subcommittee shall be transferred to the 
                Council.
                    (E) Transfer of employees.--
                            (i) Identifying employees for transfer.--
                        Not later than 30 days after the date of 
                        enactment of this Act, the Council shall 
                        identify for transfer to the Council the 
                        employees of the Appraisal Subcommittee that 
                        the Council determines to be necessary to 
                        perform the functions transferred to the 
                        Council under this subsection.
                            (ii) Transfer.--Each employee identified 
                        for transfer under clause (i) shall be 
                        transferred to the Council in accordance with 
                        this subparagraph.
                    (F) Rights of transferred employees.--
                            (i) Comparable positions.--Each employee 
                        transferred to the Council under subparagraph 
                        (E) shall be appointed to a position under the 
                        compensation system and performance evaluation 
                        system of the Council that is comparable in 
                        tenure and grade to the position held by the 
                        employee on the day before the date of such 
                        transfer.
                            (ii) Pay.--
                                    (I) In general.--Except as provided 
                                in subclause (II), each employee 
                                transferred to the Council under 
                                subparagraph (E) shall, during the 12-
                                month period beginning on the date of 
                                such transfer, receive pay at a rate 
                                not less than the basic rate of pay 
                                that the employee received during the 
                                12-month period immediately preceding 
                                that transfer date.
                                    (II) Exceptions.--Subclause (I) 
                                does not limit the right of the Council 
                                to reduce a transferred rate of basic 
                                pay of an employer for cause or 
                                unacceptable performance, or with the 
                                consent of the employee.
                                    (III) Protection only while 
                                employed.--Subclause (I) shall apply to 
                                an employee only during the period that 
                                the employee is employed by the 
                                Council.
                            (iii) Retirement benefits.--
                                    (I) Continuation of existing 
                                retirement plan.--Except as otherwise 
                                permitted by law, each employee 
                                transferred to the Council under 
                                subparagraph (E) shall remain enrolled 
                                in the retirement plan (and any 
                                associated thrift savings plan) in 
                                which the employee was enrolled on the 
                                day before the date of such transfer 
                                during the period that the employee is 
                                employed by the Council.
                                    (II) Employer contribution.--The 
                                Council shall pay any employer 
                                contributions to the retirement plan in 
                                which each employee transferred to the 
                                Council under subparagraph (E) is 
                                subject during the period that the 
                                employee is employed by the Council, in 
                                accordance with such retirement plan.
                            (iv) No private right of action.--This 
                        subparagraph does not provide any employee with 
                        any right of action to require the Council or 
                        any officer, employee, agent, or administrator 
                        of the Council to take any action under this 
                        subparagraph.
                            (v) Priority of this section.--If any 
                        protection provided under this subparagraph 
                        conflicts with any protection provided to 
                        transferred employees under section 3503 of 
                        title 5, United States Code, the provisions of 
                        this subparagraph shall control.
    (d) Effective Date.--Except as otherwise provided in this section, 
this section and the amendments made by this section shall become 
effective 90 days after the date of enactment of this Act.
    (e) Study of Oversight Functions.--
            (1) Study.--The Council shall conduct a study of the 
        progress made in meeting the purposes of this section and the 
        continuing need for Federal oversight of appraisal functions 
        pursuant to title XI of the Financial Institutions Reform, 
        Recovery, and Enforcement Act of 1989.
            (2) Report.--Not later than 3 years after the date of 
        enactment of this Act, the Council shall report to the 
        appropriate committees of the Congress on the results of the 
        study conducted under paragraph (1), along with any appropriate 
recommendations for legislation to enhance and encourage State or self-
regulation of appraisal practices in lieu of Federal oversight.

SEC. 213. BRANCH CLOSURES.

    Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 1831r-1) 
is amended by adding at the end the following new subsection:
    ``(e) Scope of Application.--This section shall not apply with 
respect to--
            ``(1) an automated teller machine;
            ``(2) the relocation of a branch or consolidation of one or 
        more branches into another branch, if the relocation or 
        consolidation--
                    ``(A) occurs within the immediate neighborhood; and
                    ``(B) does not substantially affect the nature of 
                the business or customers served; or
            ``(3) a branch that is closed in connection with--
                    ``(A) an emergency acquisition under--
                            ``(i) section 11(n); or
                            ``(ii) subsection (f) or (k) of section 13; 
                        or
                    ``(B) any assistance provided by the Corporation 
                under section 13(c).''.

SEC. 214. FOREIGN BANKS.

    (a) Examination of Branches and Agencies by Board.--Section 7(c) of 
the International Banking Act of 1978 (12 U.S.C. 3105(c)) is amended--
            (1) by striking ``(c)'' and inserting the following:
    ``(c) Foreign Bank Examinations and Reporting.--'';
            (2) in paragraph (1)(B), by adding at the end the following 
        new clause:
                            ``(iii) Avoidance of duplication.--In 
                        exercising its authority under this paragraph, 
                        the Board shall take all reasonable measures to 
                        reduce burden and avoid unnecessary duplication 
                        of examinations.'';
            (3) by striking subparagraph (C) of paragraph (1) and 
        inserting the following:
                    ``(C) On-site examination.--Each Federal branch or 
                agency, and each State branch or agency, of a foreign 
                bank shall be subject to on-site examination by an 
                appropriate Federal banking agency or State bank 
                supervisor as frequently as would a national bank or a 
                State bank, respectively, by the appropriate Federal 
                banking agency.''; and
            (4) in paragraph (1)(D), by inserting before the period at 
        the end the following: ``, only to the same extent that fees 
        are collected by the Board for examination of any State member 
        bank''.
    (b) Establishment of Foreign Bank Offices in the United States.--
Section 7(d) of the International Banking Act of 1978 (12 U.S.C. 
3105(d)) is amended--
            (1) in paragraph (2), by striking ``The Board'' and 
        inserting ``Except as provided in paragraph (6), the Board'';
            (2) in paragraph (5), by striking ``Consistent with the 
        standards for approval in paragraph (2), the''; and inserting 
        ``The''; and
            (3) by adding at the end the following new paragraphs:
            ``(6) Exception.--
                    ``(A) In general.--If the Board is unable to find, 
                under paragraph (2), that a foreign bank is subject to 
                comprehensive supervision or regulation on a 
                consolidated basis by the appropriate authorities in 
                its home country, the Board may nevertheless approve an 
                application by such foreign bank under paragraph (1) 
                if--
                            ``(i) the appropriate authorities in the 
                        home country of the foreign bank are actively 
                        working to establish arrangements for the 
consolidated supervision of such bank; and
                            ``(ii) all other factors are consistent 
                        with approval.
                    ``(B) Other considerations.--In deciding whether to 
                use its discretion under subparagraph (A), the Board 
                shall also consider whether the foreign bank has 
                adopted and implements procedures to combat money 
                laundering. The Board may also take into account 
                whether the home country of the foreign bank is 
                developing a legal regime to address money laundering 
                or is participating in multilateral efforts to combat 
                money laundering.
                    ``(C) Additional conditions.--In approving an 
                application under this paragraph, the Board, after 
                requesting and taking into consideration the views of 
                the appropriate State bank supervisor or the 
                Comptroller of the Currency, as the case may be, may 
                impose such conditions or restrictions relating to the 
                activities or business operations of the proposed 
                branch, agency, or commercial lending company 
                subsidiary, including restrictions on sources of 
                funding, as are considered appropriate. The Board shall 
                coordinate with the appropriate State bank supervisor 
                or the Comptroller of the Currency, as appropriate, in 
                the implementation of such conditions or restrictions.
                    ``(D) Modification of conditions.--Any condition or 
                restriction imposed by the Board in connection with the 
                approval of an application under authority of this 
                paragraph may be modified or withdrawn.
            ``(7) Time period for board action.--
                    ``(A) Final action.--The Board shall take final 
                action on any application under paragraph (1) not later 
                than 180 days after receipt of the application, except 
                that the Board may extend for an additional 180 days 
                the period within which to take final action on such 
                application after providing notice of, and the reasons 
                for, the extension to the applicant foreign bank and 
                any appropriate State bank supervisor or the 
                Comptroller of the Currency, as appropriate.
                    ``(B) Failure to submit information.--The Board may 
                deny any application if it does not receive information 
                requested from the applicant foreign bank or 
                appropriate authorities in the home country of the 
                foreign bank in sufficient time to permit the Board to 
                evaluate such information adequately within the time 
                periods for final action set forth in subparagraph (A).
                    ``(C) Waiver.--A foreign bank may waive the 
                applicability of this paragraph with respect to any 
                application under paragraph (1).''.
    (c) Termination of Foreign Bank Offices in the United States.--
Section 7(e)(1)(A) of the International Banking Act of 1978 (12 U.S.C. 
3105(e)(1)(A)) is amended--
            (1) by inserting ``(i)'' after ``(A)'';
            (2) by striking ``or'' at the end and inserting ``and''; 
        and
            (3) by adding at the end the following new clause:
                    ``(ii) the appropriate authorities in the home 
                country of the foreign bank are not making demonstrable 
                progress in establishing arrangements for the 
                comprehensive supervision or regulation of such foreign 
                bank on a consolidated basis; or''.

SEC. 215. DISPOSITION OF FORECLOSED ASSETS.

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

         Subtitle B--Eliminating Unnecessary Regulatory Burdens

SEC. 221. SMALL BANK EXAMINATION CYCLE.

    Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)) is amended--
            (1) by redesignating the second paragraph designated as 
        paragraph (8) as paragraph (10), and by inserting that 
        paragraph, as redesignated, immediately after paragraph (9); 
        and
            (2) in paragraph (10), as redesignated, by striking 
        ``$175,000,000'' and inserting ``$250,000,000''.

SEC. 222. REQUIRED REVIEW OF REGULATIONS.

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

SEC. 223. REPEAL OF IDENTIFICATION OF NONBANK FINANCIAL INSTITUTION 
              CUSTOMERS.

    Subchapter II of chapter 53 of title 31, United States Code, is 
amended--
            (1) by striking section 5327;
            (2) in the chapter analysis, by striking the item relating 
        to section 5327; and
            (3) in section 5321(a), by striking paragraph (7).

SEC. 224. REPEAL OF COMMERCIAL LOAN REPORTING REQUIREMENTS.

    Section 477 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 251) is repealed.

SEC. 225. INCREASE IN HOME MORTGAGE DISCLOSURE EXEMPTION THRESHOLD.

    (a) In General.--Section 309 of the Home Mortgage Disclosure Act of 
1975 (12 U.S.C. 2808) is amended in the second sentence, by striking 
``$10,000,000'' and inserting ``$50,000,000''.
    (b) Opportunity To Reduce Compliance Burden.--Section 304 of the 
Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) is amended by 
adding at the end the following new subsection:
    ``(m) Opportunity To Reduce Compliance Burden.--
            ``(1) In general.--
                    ``(A) Satisfaction of public availability 
                requirements.--A depository institution shall be deemed 
                to have satisfied the public availability requirements 
                of subsection (a) if the institution compiles the 
                information required under that subsection at the home 
                office of the institution and provides notice at the 
                branch locations specified in subsection (a) that such 
                information is available from the home office of the 
                institution upon written request.
                    ``(B) Provision of information upon request.--Not 
                later than 15 days after the receipt of a written 
                request for any information required to be compiled 
                under subsection (a), the home office of the depository 
                institution receiving the request shall provide the 
                information pertinent to the location of the branch in 
                question to the person requesting the information.
            ``(2) Form of information.--In complying with paragraph 
        (1), a depository institution shall, in the sole discretion of 
        the institution, provide the person requesting the information 
        with--
                    ``(A) a paper copy of the information requested; or
                    ``(B) if acceptable to the person, the information 
                through a form of electronic medium, such as a computer 
                disk.''.

SEC. 226. ELIMINATION OF STOCK LOAN REPORTING REQUIREMENT.

    Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(j)) is amended--
            (1) in paragraph (9)(A)--
                    (A) by striking ``financial institution and any 
                affiliate of any financial institution'' and inserting 
                ``foreign bank, or any affiliate thereof,''; and
                    (B) by striking ``by the financial institution and 
                such institution's affiliates'' and inserting ``by the 
                foreign bank or any affiliate thereof'';
            (2) in paragraph (9)(B)--
                    (A) by striking ``paragraph--'' and inserting 
                ``paragraph, the following definitions shall apply:'';
                    (B) by striking clause (i) and inserting the 
                following:
                            ``(i) Foreign bank.--The terms `foreign 
                        bank' and `affiliate' have the same meanings as 
                        in section 1 of the International Banking Act 
                        of 1978.''; and
                    (C) in clause (iii), by striking ``financial 
                institution'' and inserting ``foreign bank or any 
                affiliate thereof'';
            (3) in paragraph (9)(C)--
                    (A) by striking ``financial institution or any of 
                its affiliates'' and inserting ``foreign bank or any 
                affiliate thereof''; and
                    (B) by striking ``financial institution or its 
                affiliates'' and inserting ``foreign bank or any 
                affiliate thereof'';
            (4) in paragraph (9)(D)--
                    (A) in clause (i)--
                            (i) by striking ``the financial institution 
                        and all affiliates of the institution'' and 
                        inserting ``the foreign bank and all affiliates 
                        thereof''; and
                            (ii) by striking ``financial institution or 
                        any such affiliate'' and inserting ``foreign 
                        bank or affiliate thereof'';
                    (B) in clause (ii), by striking ``financial 
                institution and any affiliate of such institution'' and 
                inserting ``foreign bank and any affiliate thereof''; 
                and
                    (C) in clause (iii), by striking ``financial 
                institution'' and inserting ``foreign bank or any 
                affiliate thereof''; and
            (5) in paragraph (9)(E)--
                    (A) in clause (i)--
                            (i) by striking ``a financial institution 
                        and the affiliates of such institution'' and 
                        inserting ``a foreign bank or any affiliate 
                        thereof''; and
                            (ii) by striking ``institution or 
                        affiliate'' each place such term appears and 
                        inserting ``foreign bank or any affiliate 
                        thereof''; and
                    (B) in clause (ii), by striking ``financial 
                institution and any affiliate of such institution'' and 
                inserting ``foreign bank and any affiliate thereof''.

SEC. 227. CREDIT AVAILABILITY ASSESSMENT.

    (a) Study.--
            (1) In general.--Not later than 12 months after the date of 
        enactment of this Act, and once every 60 months thereafter, the 
        Board, in consultation with the Director of the Office of 
        Thrift Supervision, the Comptroller of the Currency, the Board 
        of Directors of the Corporation, the Administrator of the 
        National Credit Union Administration, the Administrator of the 
        Small Business Administration, and the Secretary of Commerce, 
        shall conduct a study and submit a report to the Congress 
        detailing the extent of small business lending by all 
        creditors.
            (2) Contents of study.--The study required under paragraph 
        (1) shall identify, to the extent practicable, those factors 
        which provide policymakers with insights into the small 
        business credit market, including--
                    (A) the demand for small business credit, including 
                consideration of the impact of economic cycles on the 
                levels of such demand;
                    (B) the availability of credit to small businesses;
                    (C) the range of credit options available to small 
                businesses, such as those available from insured 
                depository institutions and other providers of credit;
                    (D) the types of credit products used to finance 
                small business operations, including the use of 
                traditional loans, leases, lines of credit, home equity 
                loans, credit cards, and other sources of financing;
                    (E) the credit needs of small businesses, 
                including, if appropriate, the extent to which such 
                needs differ, based upon product type, size of 
                business, cash flow requirements, characteristics of 
                ownership or investors, or other aspects of such 
                business;
                    (F) the types of risks to creditors in providing 
                credit to small businesses; and
                    (G) such other factors as the Board deems 
                appropriate.
    (b) Use of Existing Data.--The studies required by this section 
shall not increase the regulatory or paperwork burden on regulated 
financial institutions, other sources of small business credit, or 
small businesses.

                 Subtitle C--Regulatory Micromanagement

SEC. 241. NATIONAL BANK DIRECTORS.

    Section 5146 of the Revised Statutes (12 U.S.C. 72) is amended in 
the first sentence, by striking ``except'' and all that follows through 
the end of the sentence and inserting the following: ``except that the 
Comptroller may, in the discretion of the Comptroller, waive the 
requirement of residency.''.

SEC. 242. PAPERWORK REDUCTION REVIEW.

    Section 303(a) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4803(a)) is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) review the extent to which existing regulations 
        require insured depository institutions and insured credit 
        unions to produce unnecessary internal written policies and 
        eliminate such requirements, where appropriate;''.

SEC. 243. STATE BANK REPRESENTATION ON BOARD OF DIRECTORS OF THE FDIC.

    Section 2(a)(1)(C) of the Federal Deposit Insurance Act (12 U.S.C. 
1812(a)(1)(C)) is amended by inserting before the period ``, 1 of whom 
shall have State bank supervisory experience''.

SEC. 244. CONSULTATION AMONG EXAMINERS.

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

 TITLE III--REGULATORY IMPACT ON COST OF CREDIT AND CREDIT AVAILABILITY

SEC. 301. AUDIT COSTS.

    (a) Auditor Attestations.--Section 36 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831m) is amended by striking subsection (e) 
and inserting the following:
    ``(e) [Reserved.]''.
    (b) Independent Audit Committees.--Section 36(g)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) is amended--
            (1) in subparagraph (A), by inserting ``, except as 
        provided in subparagraph (D)'' after ``management of the 
        institution''; and
            (2) by adding at the end the following new subparagraph:
                    ``(D) Exemption authority.--
                            ``(i) In general.--An appropriate Federal 
                        banking agency may, by order or regulation, 
                        permit the independent audit committee of an 
                        insured depository institution to be made up of 
                        less than all, but no fewer than a majority of, 
                        outside directors, if the agency determines 
                        that the institution has encountered hardships 
                        in retaining and recruiting a sufficient number 
                        of competent outside directors to serve on the 
                        internal audit committee of the institution.
                            ``(ii) Factors to be considered.--In 
                        determining whether an insured depository 
                        institution has encountered hardships referred 
                        to in clause (i), the appropriate Federal 
                        banking agency shall consider factors such as 
                        the size of the institution, and whether the 
                        institution has made a good faith effort to 
                        elect or name additional competent outside 
                        directors to the board of directors of the 
                        institution who may serve on the internal audit 
                        committee.''.
    (c) Public Availability.--Section 36(a)(3) of the Federal Deposit 
Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by adding at the end 
the following: ``Notwithstanding the preceding sentence, the 
Corporation and the appropriate Federal banking agencies may designate 
certain information as privileged and confidential and not available to 
the public.''.

SEC. 302. INCENTIVES FOR SELF-TESTING.

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

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

    ``(a) Privileged Information.--
            ``(1) Conditions for privilege.--A report or result of a 
        self-test (as that term is defined by regulations of the Board) 
        shall be considered to be privileged under paragraph (2) if a 
        creditor--
                    ``(A) conducts, or authorizes an independent third 
                party to conduct, a self-test of any aspect of a credit 
                transaction by a creditor, in order to determine the 
                level or effectiveness of compliance with this title by 
                the creditor; and
                    ``(B) has identified any possible violation of this 
                title by the creditor and has taken, or is taking, 
                appropriate corrective action to address any such 
                possible violation.
            ``(2) Privileged self-test.--If a creditor meets the 
        conditions specified in subparagraphs (A) and (B) of paragraph 
        (1) with respect to a self-test described in that paragraph, 
        any report or results of that self-test--
                    ``(A) shall be privileged; and
                    ``(B) may not be obtained or used by any applicant, 
                department, or agency in any--
                            ``(i) proceeding or civil action in which 
                        one or more violations of this title are 
                        alleged; or
                            ``(ii) examination or investigation 
                        relating to compliance with this title.
    ``(b) Results of Self-Testing.--
            ``(1) In general.--No provision of this section may be 
        construed to prevent an applicant, department, or agency from 
        obtaining or using a report or results of any self-test in any 
        proceeding or civil action in which a violation of this title 
        is alleged, or in any examination or investigation of 
        compliance with this title if--
                    ``(A) the creditor or any person with lawful access 
                to the report or results--
                            ``(i) voluntarily releases or discloses 
                        all, or any part of, the report or results to 
                        the applicant, department, or agency, or to the 
                        general public; or
                            ``(ii) refers to or describes the report or 
                        results as a defense to charges of violations 
                        of this title against the creditor to whom the 
                        self-test relates; or
                    ``(B) the report or results are sought in 
                conjunction with an adjudication or admission of a 
                violation of this title for the sole purpose of 
                determining an appropriate penalty or remedy.
            ``(2) Disclosure for determination of penalty or remedy.--
        Any report or results of a self-test that are disclosed for the 
        purpose specified in paragraph (1)(B)--
                    ``(A) shall be used only for the particular 
                proceeding in which the adjudication or admission 
                referred to in paragraph (1)(B) is made; and
                    ``(B) may not be used in any other action or 
                proceeding.
    ``(c) Adjudication.--An applicant, department, or agency that 
challenges a privilege asserted under this section may seek a 
determination of the existence and application of that privilege in--
            ``(1) a court of competent jurisdiction; or
            ``(2) an administrative law proceeding with appropriate 
        jurisdiction.''.
            (2) Regulations.--
                    (A) In general.--Not later than 6 months after the 
                date of enactment of this Act, in consultation with the 
                Secretary of Housing and Urban Development and the 
                agencies referred to in section 704 of the Equal Credit 
                Opportunity Act, and after providing notice and an 
                opportunity for public comment, the Board shall 
                promulgate final regulations to implement section 704A 
                of the Equal Credit Opportunity Act, as added by this 
                section.
                    (B) Self-test.--
                            (i) Definition.--The regulations 
                        promulgated under subparagraph (A) shall 
                        include a definition of the term ``self-test'' 
                        for purposes of section 704A of the Equal 
                        Credit Opportunity Act, as added by this 
                        section.
                            (ii) Requirement for self-test.--The 
                        regulations promulgated under subparagraph (A) 
                        shall specify that a self-test shall be 
                        sufficiently extensive to constitute a 
                        determination of the level and effectiveness of 
                        compliance by a creditor with the Equal Credit 
                        Opportunity Act.
                            (iii) Substantial similarity to certain 
                        fair housing act regulations.--The regulations 
                        promulgated under subparagraph (A) shall be 
                        substantially similar to the regulations 
                        promulgated by the Secretary of Housing and 
                        Urban Development to carry out section 814A(d) 
                        of the Fair Housing Act, as added by this 
                        section.
            (3) Clerical amendment.--The table of sections for title 
        VII of the Consumer Credit Protection Act is amended by 
        inserting after the item relating to section 704 the following 
        new item:

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

``SEC. 814A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

    ``(a) Privileged Information.--
            ``(1) Conditions for privilege.--A report or result of a 
        self-test (as that term is defined by regulation of the 
        Secretary) shall be considered to be privileged under paragraph 
        (2) if any person--
                    ``(A) conducts, or authorizes an independent third 
                party to conduct, a self-test of any aspect of a 
                residential real estate related lending transaction of 
                that person, or any part of that transaction, in order 
                to determine the level or effectiveness of compliance 
                with this title by that person; and
                    ``(B) has identified any possible violation of this 
                title by that person and has taken, or is taking, 
                appropriate corrective action to address any such 
                possible violation.
            ``(2) Privileged self-test.--If a person meets the 
        conditions specified in subparagraphs (A) and (B) of paragraph 
        (1) with respect to a self-test described in that paragraph, 
        any report or results of that self-test--
                    ``(A) shall be privileged; and
                    ``(B) may not be obtained or used by any applicant, 
                department, or agency in any--
                            ``(i) proceeding or civil action in which 
                        one or more violations of this title are 
                        alleged; or
                            ``(ii) examination or investigation 
                        relating to compliance with this title.
    ``(b) Results of Self-Testing.--
            ``(1) In general.--No provision of this section may be 
        construed to prevent an aggrieved person, complainant, 
        department, or agency from obtaining or using a report or 
        results of any self-test in any proceeding or civil action in 
        which a violation of this title is alleged, or in any 
        examination or investigation of compliance with this title if--
                    ``(A) the person to whom the self-test relates or 
                any person with lawful access to the report or the 
                results--
                            ``(i) voluntarily releases or discloses 
                        all, or any part of, the report or results to 
                        the aggrieved person, complainant, department, 
                        or agency, or to the general public; or
                            ``(ii) refers to or describes the report or 
                        results as a defense to charges of violations 
                        of this title against the person to whom the 
                        self-test relates; or
                    ``(B) the report or results are sought in 
                conjunction with an adjudication or admission of a 
                violation of this title for the sole purpose of 
                determining an appropriate penalty or remedy.
            ``(2) Disclosure for determination of penalty or remedy.--
        Any report or results of a self-test that are disclosed for the 
        purpose specified in paragraph (1)(B)--
                    ``(A) shall be used only for the particular 
                proceeding in which the adjudication or admission 
                referred to in paragraph (1)(B) is made; and
                    ``(B) may not be used in any other action or 
                proceeding.
    ``(c) Adjudication.--An aggrieved person, complainant, department, 
or agency that challenges a privilege asserted under this section may 
seek a determination of the existence and application of that privilege 
in--
            ``(1) a court of competent jurisdiction; or
            ``(2) an administrative law proceeding with appropriate 
        jurisdiction.''.
            (2) Regulations.--
                    (A) In general.--Not later than 6 months after the 
                date of enactment of this Act, in consultation with the 
                Board and after providing notice and an opportunity for 
                public comment, the Secretary of Housing and Urban 
                Development shall promulgate final regulations to 
                implement section 814A of the Fair Housing Act, as 
                added by this section.
                    (B) Self-test.--
                            (i) Definition.--The regulations 
                        promulgated by the Secretary under subparagraph 
                        (A) shall include a definition of the term 
                        ``self-test'' for purposes of section 814A of 
                        the Fair Housing Act, as added by this section.
                            (ii) Requirement for self-test.--The 
                        regulations promulgated by the Secretary under 
                        subparagraph (A) shall specify that a self-test 
                        shall be sufficiently extensive to constitute a 
                        determination of the level and effectiveness of 
                        the compliance by a person engaged in 
                        residential real estate related lending 
                        activities with the Fair Housing Act.
                            (iii) Substantial similarity to certain 
                        equal credit opportunity act regulations.--The 
                        regulations promulgated under subparagraph (A) 
                        shall be substantially similar to the 
                        regulations promulgated by the Board to carry 
                        out section 704A of the Equal Credit 
                        Opportunity Act, as added by this section.
    (c) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        privilege provided for in section 704A of the Equal Credit 
        Opportunity Act or section 814A of the Fair Housing Act (as 
        those sections are added by this section) shall apply to a 
        self-test (as that term is defined pursuant to the regulations 
        promulgated under subsection (a)(2) or (b)(2) of this section, 
        as appropriate) conducted before, on, or after the effective 
        date of the regulations promulgated under subsection (a)(2) or 
        (b)(2), as appropriate.
            (2) Exception.--The privilege referred to in paragraph (1) 
        does not apply to such a self-test conducted prior to the 
        effective date of the regulations promulgated under subsection 
        (a) or (b), as appropriate, if--
                    (A) before that effective date, a complaint against 
                the creditor or person engaged in residential real 
                estate related lending activities (as the case may be) 
                was--
                            (i) formally filed in any court of 
                        competent jurisdiction; or
                            (ii) the subject of an ongoing 
                        administrative law proceeding;
                    (B) in the case of section 704A of the Equal Credit 
                Opportunity Act, the creditor has waived the privilege 
                pursuant to subsection (b)(1)(A)(i) of that section; or
                    (C) in the case of section 814A of the Fair Housing 
                Act, the person engaged in residential real estate 
                related lending activities has waived the privilege 
                pursuant to subsection (b)(1)(A)(i) of that section.

SEC. 303. EXEMPTION FOR SAVINGS INSTITUTIONS SERVING MILITARY 
              PERSONNEL.

    Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
1467a(m)(3)(F)) is amended to read as follows:
                    ``(F) Exemption for specialized savings 
                associations serving certain military personnel.--
                Subparagraph (A) does not apply to a savings 
                association subsidiary of a savings and loan holding 
                company if not less than 90 percent of the customers of 
                the savings and loan holding company and the 
                subsidiaries and affiliates of such company are active 
                or former officers in the Armed Forces of the United 
                States or the widows, widowers, divorced spouses, or 
                current or former dependents of such officers.''.

SEC. 304. QUALIFIED THRIFT INVESTMENT AMENDMENTS.

    (a) Credit Cards.--Section 5(b) of the Home Owners' Loan Act (12 
U.S.C. 1464(b)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraph (5) as paragraph (4).
    (b) Loans or Investments Without Percentage of Assets Limitation.--
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 subparagraphs:
                    ``(T) Credit card loans.--Loans made through credit 
                cards or credit card accounts.
                    ``(U) Educational loans.--Loans made for the 
                payment of educational expenses.''.
    (c) Commercial and Other Loans.--Section 5(c)(2)(A) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by adding at the 
end the following: ``No loan may be made under this subparagraph in an 
amount that exceeds 20 percent of the total assets of the Federal 
savings association, and any loan amount in excess of 10 percent of the 
total assets of the Federal savings association may be invested only in 
small business loans, as such term is defined by the Director.''.
    (d) Loans or Investments Limited to 5 Percent of Assets.--Section 
5(c)(3) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(3)) is 
amended--
            (1) by striking subparagraph (A); and
            (2) by redesignating subparagraphs (B), (C), and (D) as 
        subparagraphs (A), (B), and (C), respectively.
    (e) Qualified Thrift Lender Test.--Section 10(m)(1) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(m)(1)) is amended--
            (1) by redesignating subparagraph (B) as clause (ii);
            (2) in subparagraph (A), by striking ``(A) the savings'' 
        and inserting ``(B)(i) the savings''; and
            (3) by inserting after ``if--'' the following new 
        subparagraph:
                    ``(A) the savings association qualifies as a 
                domestic building and loan association, as such term is 
                defined in section 7701(a)(19) of the Internal Revenue 
                Code of 1986; or''.
    (f) Definition.--Section 10(m)(4) of the Home Owners' Loan Act (12 
U.S.C. 1467a(m)(4)) is amended--
            (1) by striking ``subsection--'' and inserting 
        ``subsection, the following definitions shall apply:'';
            (2) in subparagraph (C)--
                    (A) in clause (ii), by adding at the end the 
                following new subclause:
                                    ``(VII) Loans for educational 
                                purposes, loans to small businesses, 
                                and loans made through credit cards or 
                                credit card accounts.''; and
                    (B) in clause (iii), by striking subclause (VI) and 
                inserting the following:
                                    ``(VI) Loans for personal, family, 
                                or household purposes (other than loans 
                                for personal, family, or household 
                                purposes described in clause 
                                (ii)(VII)).''; and
            (3) by adding at the end the following new subparagraphs:
                    ``(D) Credit card.--The Director shall issue such 
                regulations as may be necessary to define the term 
                `credit card'.
                    ``(E) Small business.--The Director shall issue 
                such regulations as may be necessary to define the term 
                `small business'.''.

SEC. 305. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN BANKS.

    The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by 
inserting after section 11A the following new section:

``SEC. 11B. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN BANKS.

    ``(a) In General.--Any policy or regulation adopted by the Board 
governing payment system risk or intraday credit shall--
            ``(1) include--
                    ``(A) the establishment of net debit caps 
                appropriate to the credit quality of each Federal Home 
                Loan Bank; and
                    ``(B) the imposition of normal fees for daylight 
                overdrafts, calculated in the same manner as fees for 
                other users; or
            ``(2) exempt Federal Home Loan Banks from such policy or 
        regulation.
    ``(b) Definition.--For purposes of this section, the term `Federal 
Home Loan Bank' has the same meaning as in section 2 of the Federal 
Home Loan Bank Act.''.

SEC. 306. APPLICATION FOR MEMBERSHIP IN THE FEDERAL HOME LOAN BANK 
              SYSTEM.

     Section 4(b) of the Federal Home Loan Bank Act (12 U.S.C. 1424(b)) 
is amended to read as follows:
    ``(b) Membership Based on Convenience.--
            ``(1) Application process.--An institution that is eligible 
        to become a member under this section may become a member by 
        submitting an application for membership--
                    ``(A) to the Bank in the district in which the 
                principal place of business of the institution is 
                located; or
                    ``(B) if the Board determines that such action is 
                necessary for the convenience of the institution, to 
                the Bank in any district that is adjacent to the 
                district in which the principal place of business of 
                the institution is located.
            ``(2) Approval of application.--An application for 
        membership submitted under this subsection shall be approved by 
        the Bank--
                    ``(A) if--
                            ``(i) in the judgment of the Bank, the 
                        applicant meets the criteria for eligibility 
                        contained in this section; and
                            ``(ii) the applicant has a CAMEL composite 
                        rating of 1 or 2 under the Uniform Financial 
                        Institutions Rating System (or an equivalent 
                        rating under a comparable rating system) as of 
                        the most recent rating of that applicant; or
                    ``(B) in the case of an applicant not described in 
                subparagraph (A), the bank provides notice to the Board 
                prior to the approval of the application.''.

SEC. 307. AUTHORITY FOR FEDERAL HOME LOAN BANKS TO SELECT EXTERNAL 
              AUDITORS.

    Section 11(j) of the Federal Home Loan Bank Act (12 U.S.C. 1431(j)) 
is amended--
            (1) by striking ``(j) Notwithstanding'' and inserting the 
        following:
    ``(j) Audits.--
            ``(1) In general.--Notwithstanding''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Selection of external auditors.--
                    ``(A) In general.--The Federal Home Loan Banks 
                shall, on an annual basis, contract jointly for an 
                annual independent audit.
                    ``(B) Role of the board.--Notwithstanding any other 
                provision of law, the Board shall not participate in 
                the independent audit contracting process under this 
                paragraph, except that the Board may establish 
                requirements for independent audit contracts and 
                requirements to ensure consistency in financial 
                reporting.''.

SEC. 308. LIMITED PURPOSE BANKS.

    (a) Growth Cap Relief.--Section 4(f)(3)(B) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)(3)(B)) is amended--
            (1) in clause (ii), by adding ``or'' at the end;
            (2) in clause (iii), by striking ``; or'' at the end and 
        inserting a period; and
            (3) by striking clause (iv).
    (b) Limited Purpose Bank Exception.--Section 2(c)(2)(F) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(F)) is amended by 
inserting ``, including an institution that accepts collateral for 
extensions of credit by holding deposits under $100,000, and by other 
means'' after ``An institution''.

SEC. 309. COLLATERALIZATION OF ADVANCES TO MEMBERS.

    Section 10(a)(1) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(a)(1)) is amended to read as follows:
            ``(1) Fully disbursed, whole first mortgages on improved 
        residential property that are not more than 90 days delinquent, 
        mortgages on improved residential property insured or 
        guaranteed by the United States Government or any agency 
        thereof, or securities representing a whole interest in such 
        mortgages.''.

SEC. 310. INCREASING LIMIT ON TOTAL ADVANCES BY THE FHLB SYSTEM TO NON-
              QTL INSTITUTIONS.

    Section 10(e)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(e)(2)) is amended by striking ``30 percent'' and inserting ``40 
percent''.

SEC. 311. FAIR DEBT COLLECTION PRACTICES.

    (a) False or Misleading Representations.--Section 807(11) of the 
Fair Debt Collection Practices Act (15 U.S.C. 1692e(11)) is amended by 
striking ``all communications made to collect'' and inserting ``the 
initial written communication with the consumer in connection with the 
collection of''.
    (b) Collection Activity During Validation Period.--Section 809(a) 
of the Fair Debt Collection Practices Act (15 U.S.C. 1692g(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 ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) a statement that, except as provided in subsection 
        (b), a debt collector may--
                    ``(A) demand that the debt be paid during the 30-
                day period described in paragraph (3); and
                    ``(B) collect payment on the debt during such 
                period.''.

                    TITLE IV--FAIR CREDIT REPORTING

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Consumer Reporting Reform Act of 
1995''.

SEC. 402. DEFINITIONS.

    (a) Adverse Action.--Section 603 of the Fair Credit Reporting Act 
(15 U.S.C. 1681a) is amended by adding at the end the following new 
subsection:
    ``(k) Adverse Action.--
            ``(1) Actions included.--The term `adverse action'--
                    ``(A) has the same meaning as in section 701(d)(6) 
                of the Equal Credit Opportunity Act; and
                    ``(B) means--
                            ``(i) a denial or cancellation of, an 
                        increase in any charge for, or a reduction or 
                        other adverse or unfavorable change in the 
                        terms of coverage or amount of, any insurance, 
                        existing or applied for, in connection with the 
                        underwriting of insurance;
                            ``(ii) a denial of employment or any other 
                        decision for employment purposes that adversely 
                        affects any current or prospective employee;
                            ``(iii) a denial or cancellation of, an 
                        increase in any charge for, or any other 
                        adverse or unfavorable change in the terms of, 
                        any license or benefit described in section 
                        604(a)(3)(D); and
                            ``(iv) an action taken or determination 
                        that is--
                                    ``(I) made in connection with an 
                                application that was made by, or a 
                                transaction that was initiated by, any 
                                consumer, or in connection with a 
                                review of an account under section 
                                604(a)(3)(E)(ii); and
                                    ``(II) adverse to the interests of 
                                the consumer.
            ``(2) Applicable findings, decisions, commentary, and 
        orders.--For purposes of any determination of whether an action 
        is an adverse action under paragraph (1)(A), all appropriate 
        final findings, decisions, commentary, and orders issued under 
        section 701(d)(6) of the Equal Credit Opportunity Act by the 
        Board of Governors of the Federal Reserve System or any court 
        shall apply.''.
    (b) Firm Offer of Credit or Insurance.--Section 603 of the Fair 
Credit Reporting Act (15 U.S.C. 1681a) (as amended by subsection (a) of 
this section) is amended by adding at the end the following new 
subsection:
    ``(l) Firm Offer of Credit or Insurance.--The term `firm offer of 
credit or insurance' means any offer of credit or insurance to a 
consumer that will be honored if the consumer is determined, based on 
information in a consumer report on the consumer, to meet the specific 
criteria used to select the consumer for the offer, except that the 
offer may be further conditioned on one or more of the following:
            ``(1) The consumer being determined, based on information 
        in the consumer's application for the credit or insurance, to 
        meet specific criteria bearing on creditworthiness or 
        insurability, as applicable, that are established--
                    ``(A) before selection of the consumer for the 
                offer; and
                    ``(B) for the purpose of determining whether to 
                extend credit or insurance pursuant to the offer.
            ``(2) Verification--
                    ``(A) that the consumer continues to meet the 
                specific criteria used to select the consumer for the 
                offer, by using information in a consumer report on the 
                consumer, information in the consumer's application for 
                the credit or insurance, or other information bearing 
                on the creditworthiness or insurability of the 
                consumer; or
                    ``(B) of the information in the consumer's 
                application for the credit or insurance, to determine 
                that the consumer meets the specific criteria bearing 
                on creditworthiness or insurability.
            ``(3) The consumer furnishing any collateral that is a 
        requirement for the extension of the credit or insurance that 
        was--
                    ``(A) established before selection of the consumer 
                for the offer of credit or insurance; and
                    ``(B) disclosed to the consumer in the offer of 
                credit or insurance.''.
    (c) Credit or Insurance Transaction That Is Not Initiated by the 
Consumer.--Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a) (as amended by subsection (b) of this section) is amended by 
adding at the end the following new subsection:
    ``(m) Credit or Insurance Transaction That Is Not Initiated by the 
Consumer.--The term `credit or insurance transaction that is not 
initiated by the consumer' does not include the use of a consumer 
report by a person with which the consumer has an account or insurance 
policy, for purposes of--
            ``(1) reviewing the account or insurance policy; or
            ``(2) collecting the account.''.
    (d) State.--Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a) (as amended by subsection (c) of this section) is amended by 
adding at the end the following new subsection:
    ``(n) State.--The term `State' means any State, the Commonwealth of 
Puerto Rico, the District of Columbia, and any territory or possession 
of the United States.''.
    (e) Definition of Consumer Report.--Section 603(d) of the Fair 
Credit Reporting Act (15 U.S.C. 1681a(d)) is amended--
            (1) by striking ``(d) The term'' and inserting the 
        following:
    ``(d) Consumer Report.--
            ``(1) In general.--The term'';
            (2) by striking ``for (1) credit'' and inserting the 
        following: ``for--
                    ``(A) credit'';
            (3) by striking ``purposes, or (2)'' and all that follows 
        through ``section 604.'' and inserting the following: 
        ``purposes;
                    ``(B) employment purposes; or
                    ``(C) any other purpose authorized under section 
                604.''; and
            (4) by striking the second sentence and inserting the 
        following:
            ``(2) Exclusions.--The term `consumer report' does not 
        include--
                    ``(A) any--
                            ``(i) report containing information solely 
                        as to transactions or experiences between the 
                        consumer and the person making the report;
                            ``(ii) communication of that information 
                        among persons related by common ownership or 
                        affiliated by corporate control; or
                            ``(iii) any communication of other 
                        information among persons related by common 
                        ownership or affiliated by corporate control, 
                        if it is clearly and conspicuously disclosed to 
                        the consumer that the information may be 
                        communicated among such persons and the 
                        consumer is given the opportunity, prior to the 
                        time that the information is initially 
                        communicated, to direct that such information 
                        not be communicated among such persons;
                    ``(B) any authorization or approval of a specific 
                extension of credit directly or indirectly by the 
                issuer of a credit card or similar device;
                    ``(C) any report in which a person who has been 
                requested by a third party to make a specific extension 
                of credit directly or indirectly to a consumer conveys 
                his or her decision with respect to such request, if 
                the third party advises the consumer of the name and 
                address of the person to whom the request was made, and 
                such person makes the disclosures to the consumer 
                required under section 615;
                    ``(D) any report furnished for use in connection 
                with a transaction that is primarily for a commercial 
                purpose, regardless of the purpose for which 
                information in the report was originally collected or 
                is otherwise used; or
                    ``(E) a communication described in subsection 
                (o).''.
    (f) Exclusion of Certain Communications by Employment Agencies From 
Definition of Consumer Report.--Section 603 of the Fair Credit 
Reporting Act (15 U.S.C. 1681(a)) is amended by adding at the end the 
following new subsection:
    ``(o) Excluded Communications.--A communication is described in 
this subsection if it is a communication--
            ``(1) that, but for subsection (d)(2)(E), would be an 
        investigative consumer report;
            ``(2) that is made to a prospective employer for the 
        purpose of--
                    ``(A) procuring an employee for the employer; or
                    ``(B) procuring an opportunity for a natural person 
                to work for the employer;
            ``(3) that is made by a person who regularly performs such 
        procurement;
            ``(4) that is not used by any person for any purpose other 
        than a purpose described in subparagraph (A) or (B) of 
        paragraph (2); or
            ``(5) with respect to which--
                    ``(A) the consumer who is the subject of the 
                communication--
                            ``(i) consents orally or in writing to the 
                        nature and scope of the communication, before 
                        the collection of any information for the 
                        purpose of making the communication;
                            ``(ii) consents orally or in writing to the 
                        making of the communication to a prospective 
                        employer, before the making of the 
                        communication; and
                            ``(iii) in the case of consent under clause 
                        (i) or (ii) given orally, is provided written 
                        confirmation of that consent by the person 
                        making the communication, not later than 3 
                        business days after the receipt of the consent 
                        by that person;
                    ``(B) the person who makes the communication does 
                not, for the purpose of making the communication, make 
                any inquiry that if made by a prospective employer of 
                the consumer who is the subject of the communication 
                would violate any applicable Federal or State equal 
                employment opportunity law or regulation; and
                    ``(C) the person who makes the communication--
                            ``(i) discloses in writing to the consumer 
                        who is the subject of the communication, not 
                        later than 5 business days after receiving any 
                        request from the consumer for such disclosure, 
                        the nature and substance of all information in 
                        the consumer's file at the time of the request, 
                        except that the sources of any information that 
                        is acquired solely for use in making the 
                        communication and is actually used for no other 
                        purpose, need not be disclosed other than under 
                        appropriate discovery procedures in any court 
                        of competent jurisdiction in which an action is 
                        brought; and
                            ``(ii) notifies the consumer who is the 
                        subject of the communication, in writing, of 
                        the consumer's right to request the information 
                        described in clause (i).''.
    (g) Consumer Reporting Agency That Compiles and Maintains Files on 
a Nationwide Basis.--Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) (as amended by subsection (f) of this section) is amended 
by adding at the end the following new subsection:
    ``(p) Consumer Reporting Agency That Compiles and Maintains Files 
on Consumers on a Nationwide Basis.--The term `consumer reporting 
agency that compiles and maintains files on consumers on a nationwide 
basis' means a consumer reporting agency that regularly engages in the 
practice of assembling or evaluating, and maintaining, for the purpose 
of furnishing consumer reports to third parties bearing on a consumer's 
creditworthiness, credit standing, or credit capacity, each of the 
following regarding consumers residing nationwide:
            ``(1) Public record information.
            ``(2) Credit account information from persons who furnish 
        that information regularly and in the ordinary course of 
        business.''.

SEC. 403. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT PURPOSES.

    (a) Furnishing Consumer Reports for Business Transactions.--Section 
604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended--
            (1) by inserting ``(a) In General.--'' before ``A consumer 
        reporting agency''; and
            (2) in subsection (a)(3) (as so designated by paragraph (1) 
        of this subsection), by striking subparagraph (E) and inserting 
        the following:
            ``(E) otherwise has a legitimate business need for the 
        information--
                    ``(i) in connection with a business transaction 
                that--
                            ``(I) is initiated by the consumer; or
                            ``(II) is a direct marketing transaction 
                        for which the furnishing of information from a 
                        consumer's file by the agency is not prohibited 
                        under subsection (d); or
                    ``(ii) to review an account to determine whether 
                the consumer continues to meet the terms of the 
                account.''.
    (b) Furnishing and Using Consumer Reports for Employment 
Purposes.--Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
1681b) is amended by adding at the end the following new subsection:
    ``(b) Conditions for Furnishing and Using Consumer Reports for 
Employment Purposes.--
            ``(1) Certification from user.--A consumer reporting agency 
        may furnish a consumer report for employment purposes only if--
                    ``(A) the person who obtains such report from the 
                agency certifies to the agency that--
                            ``(i) the person has complied with 
                        paragraph (2) with respect to the consumer 
                        report, and the person will comply with 
                        paragraph (3) with respect to the consumer 
                        report if paragraph (3) becomes applicable; and
                            ``(ii) information from the consumer report 
                        will not be used in violation of any applicable 
                        Federal or State equal employment opportunity 
                        law or regulation; and
                    ``(B) the consumer reporting agency provides with 
                the report a summary of the consumer's rights under 
                this title, as prescribed by the Federal Trade 
                Commission under section 609(c)(3).
            ``(2) Disclosure to consumer.--A person may not procure a 
        consumer report, or cause a consumer report to be procured, for 
        employment purposes with respect to any consumer, unless--
                    ``(A) a clear and conspicuous disclosure has been 
                made in writing to the consumer at any time before the 
                report is procured or caused to be procured, in a 
                document that consists solely of the disclosure, that a 
                consumer report may be obtained for employment 
                purposes; and
                    ``(B) the consumer has authorized in writing the 
                procurement of the report by that person.
            ``(3) Conditions on use for adverse actions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), in using a consumer report for 
                employment purposes, before taking any adverse action 
                based in whole or in part on the report, the person 
                intending to take such adverse action shall provide to 
                the consumer to whom the report relates--
                            ``(i) a copy of the report;
                            ``(ii) a description in writing of the 
                        rights of the consumer under this title, as 
                        prescribed by the Federal Trade Commission 
                        under section 609(c)(3); and
                            ``(iii) a period of not longer than 5 
                        business days following receipt of the report 
                        by the consumer under clause (i) to respond to 
                        any information in the report that is disputed 
                        by the consumer and notice in writing of the 
                        opportunity for the consumer to respond during 
                        that period.
                    ``(B) Exception.--The opportunity to respond and 
                notice described in subparagraph (A)(iii) shall not be 
                required with respect to any person who takes an 
                adverse action described in subparagraph (A) based on a 
                reasonable belief that the consumer has engaged in 
                fraudulent or criminal activity that is related to, or 
                that could affect, the consumer's employment.''.

SEC. 404. USE OF CONSUMER REPORTS FOR PRESCREENING AND DIRECT 
              MARKETING; PROHIBITION ON UNAUTHORIZED OR UNCERTIFIED USE 
              OF INFORMATION.

    (a) In General.--Section 604 of the Fair Credit Reporting Act (15 
U.S.C. 1681b) (as amended by section 403 of this Act) is amended--
            (1) in subsection (a), by striking ``A consumer reporting 
        agency'' and inserting ``Subject to subsections (c) and (d), 
        any consumer reporting agency''; and
            (2) by adding at the end the following new subsections:
    ``(c) Furnishing Reports in Connection With Credit or Insurance 
Transactions That Are Not Initiated by the Consumer.--
            ``(1) In general.--A consumer reporting agency may furnish 
        a consumer report relating to any consumer pursuant to 
        subsection (a)(3)(A) in connection with any credit or insurance 
        transaction that is not initiated by the consumer only if--
                    ``(A) the consumer authorizes the agency to provide 
                such report to such person; or
                    ``(B)(i) the transaction consists of a firm offer 
                of credit or insurance;
                    ``(ii) the consumer reporting agency has complied 
                with subsection (e); and
                    ``(iii) there is not in effect an election by the 
                consumer, made in accordance with subsection (e), to 
                have the consumer's name and address excluded from 
                lists of names provided by the agency pursuant to this 
                paragraph.
            ``(2) Limits on information received under paragraph 
        (1)(b).--A person may receive pursuant to paragraph (1)(B) 
        only--
                    ``(A) the name and address of a consumer;
                    ``(B) an identifier that is not unique to the 
                consumer and that is used by the person solely for the 
                purpose of verifying the identity of the consumer; and
                    ``(C) other information pertaining to a consumer 
                that does not identify the relationship or experience 
                of the consumer with respect to a particular creditor 
                or other entity.
            ``(3) Information regarding inquiries.--Except as provided 
        in section 609(a)(5), a consumer reporting agency shall not 
        furnish to any person a record of inquiries in connection with 
        a credit or insurance transaction that is not initiated by a 
        consumer.
    ``(d) Furnishing Information From Consumer Files in Connection With 
Direct Marketing Transactions That Are Not Initiated by the Consumer.--
            ``(1) In general.--A consumer reporting agency may furnish 
        information from a file relating to a consumer pursuant to 
        subsection (a)(3)(E) in connection with a direct marketing 
        transaction that is not initiated by the consumer only if--
                    ``(A) the consumer authorizes the agency to provide 
                such information to such person; or
                    ``(B)(i) the consumer reporting agency has complied 
                with subsection (e); and
                    ``(ii) there is not in effect an election by the 
                consumer, made in accordance with subsection (e), to 
                have the name and address of the consumer excluded from 
                lists of names provided by the agency pursuant to this 
                paragraph.
            ``(2) Limits on furnishing information under paragraph 
        (1)(b).--A consumer reporting agency may furnish, pursuant to 
        paragraph (1)(B), only the name and address of a consumer and 
        other information that would not disclose the credit payment 
        history, credit limit, credit balance, or any negative 
        information pertaining to the consumer.
            ``(3) Information regarding inquiries.--Except as provided 
        in section 609(a)(5), a consumer reporting agency shall not 
        furnish to any person a record of inquiries made in connection 
        with a direct marketing transaction that is not initiated by a 
        consumer.
    ``(e) Election of Consumer To Be Excluded From Lists.--
            ``(1) In general.--A consumer may elect to have the 
        consumer's name and address excluded from any list provided by 
        a consumer reporting agency under subsection (c)(1)(B) in 
        connection with a credit or insurance transaction that is not 
        initiated by the consumer or under subsection (d)(1)(B) in 
        connection with a direct marketing transaction that is not 
        initiated by the consumer, by notifying the agency in 
        accordance with paragraph (2) that the consumer does not 
        consent to any use of a consumer report relating to the 
        consumer in connection with any credit or insurance transaction 
        that is not initiated by the consumer or any direct marketing 
        transaction that is not initiated by the consumer.
            ``(2) Manner of notification.--A consumer shall notify a 
        consumer reporting agency under paragraph (1)--
                    ``(A) through the notification system maintained by 
                the agency under paragraph (5); or
                    ``(B) by submitting to the agency a signed notice 
                of election form issued by the agency for purposes of 
                this subparagraph.
            ``(3) Response of agency after notification through 
        system.--Upon receipt of notification of the election of a 
        consumer under paragraph (1) through the notification system 
        maintained by the agency under paragraph (5), a consumer 
        reporting agency shall--
                    ``(A) inform the consumer that the election is 
                effective only for the 2-year period following the 
                election if the consumer does not submit to the agency 
                a signed notice of election form issued by the agency 
                for purposes of paragraph (2)(B); and
                    ``(B) provide to the consumer a notice of election 
                form, if requested by the consumer, not later than 5 
                business days after receipt of the notification of the 
                election through the system established under paragraph 
                (5), in the case of a request made at the time the 
                consumer provides notification through the system.
            ``(4) Effectiveness of election.--An election of a consumer 
        under paragraph (1)--
                    ``(A) shall be effective with respect to a consumer 
                reporting agency beginning on the date on which the 
                consumer notifies the agency in accordance with 
                paragraph (2);
                    ``(B) shall be effective with respect to a consumer 
                reporting agency--
                            ``(i) subject to subparagraph (C), during 
                        the 2-year period beginning on the date on 
                        which the consumer notifies the agency of the 
                        election, in the case of an election for which 
                        a consumer notifies the agency only in 
                        accordance with paragraph (2)(A); or
                            ``(ii) until the consumer notifies the 
                        agency under subparagraph (C), in the case of 
                        an election for which a consumer notifies the 
                        agency in accordance with paragraph (2)(B);
                    ``(C) shall not be effective after the date on 
                which the consumer notifies the agency, through the 
                notification system established by the agency under 
                paragraph (5), that the election is no longer 
                effective; and
                    ``(D) shall be effective with respect to each 
                affiliate of the agency.
            ``(5) Notification system.--
                    ``(A) In general.--Each consumer reporting agency 
                that, under subsection (c)(1)(B), furnishes a consumer 
                report in connection with a credit or insurance 
                transaction that is not initiated by a consumer or, 
                under subsection (d)(1)(B), furnishes a consumer report 
                in connection with a direct marketing transaction that 
                is not initiated by a consumer, shall--
                            ``(i) establish and maintain a notification 
                        system, including a toll-free telephone number, 
                        which permits any consumer whose consumer 
                        report is maintained by the agency to notify 
                        the agency, with appropriate identification, of 
                        the consumer's election to have the consumer's 
                        name and address excluded from any such list of 
                        names and addresses provided by the agency for 
                        such a transaction; and
                            ``(ii) publish by not later than 365 days 
                        after the date of enactment of the Consumer 
                        Reporting Reform Act of 1995, and not less than 
                        annually thereafter, in a publication of 
                        general circulation in the area served by the 
                        agency--
                                    ``(I) a notification that 
                                information in consumer files 
                                maintained by the agency may be used in 
                                connection with such transactions; and
                                    ``(II) the address and toll-free 
                                telephone number for consumers to use 
                                to notify the agency of the consumer's 
                                election under clause (i).
                    ``(B) Establishment and maintenance as 
                compliance.--Establishment and maintenance of a 
                notification system (including a toll-free telephone 
                number) and publication by a consumer reporting agency 
                on the agency's own behalf and on behalf of any of its 
                affiliates in accordance with this paragraph is deemed 
                to be compliance with this paragraph by each of those 
                affiliates.
            ``(6) Notification system by agencies that operate 
        nationwide.--Each consumer reporting agency that compiles and 
        maintains files on consumers on a nationwide basis shall 
        establish and maintain a notification system for purposes of 
        paragraph (5) jointly with other such consumer reporting 
        agencies.''.
    (b) Use of Information Obtained From Reports.--Section 604 of the 
Fair Credit Reporting Act (15 U.S.C. 1681b) (as amended by subsection 
(a) of this section) is amended by adding at the end the following new 
subsection:
    ``(f) Certain Use or Obtaining of Information Prohibited.--A person 
shall not use or obtain a consumer report for any purpose unless--
            ``(1) the consumer report is obtained for a purpose for 
        which the consumer report is authorized to be furnished under 
        this section; and
            ``(2) the purpose is certified in accordance with section 
        607 by a prospective user of the report through a general or 
        specific certification.''.

SEC. 405. CONSUMER CONSENT REQUIRED TO FURNISH CONSUMER REPORT 
              CONTAINING MEDICAL INFORMATION; FURNISHING CONSUMER 
              REPORTS FOR COMMERCIAL TRANSACTIONS.

    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) (as 
amended by this Act) is amended by adding at the end the following new 
subsection:
    ``(g) Furnishing Reports Containing Medical Information.--A 
consumer reporting agency shall not furnish for employment purposes, or 
in connection with a credit or insurance transaction or a direct 
marketing transaction, a consumer report that contains medical 
information about a consumer, unless the consumer consents to the 
furnishing of the report.''.

SEC. 406. OBSOLETE INFORMATION AND INFORMATION CONTAINED IN CONSUMER 
              REPORTS.

    (a) Repeal Large-Dollar Exceptions.--Section 605 of the Fair Credit 
Reporting Act (15 U.S.C. 1681c) is amended--
            (1) in subsection (a), by striking ``(a) Except as 
        authorized under subsection (b), no'' and inserting the 
        following new subsection:
    ``(a) Information Excluded From Consumer Reports.--No''; and
            (2) by striking subsection (b).
    (b) Clarification of Reporting Period.--Section 605 of the Fair 
Credit Reporting Act (15 U.S.C. 1681c) (as amended by subsection (a) of 
this section) is amended by adding at the end the following:
    ``(b) Running of Reporting Period.--
            ``(1) In general.--The 7-year period referred to in 
        paragraphs (4) and (6) of subsection (a) shall begin, with 
        respect to any delinquent account that is placed for collection 
        (internally or by referral to a third party, whichever is 
        earlier), charged to profit and loss, or subjected to any 
        similar action, upon the expiration of the 180-day period 
        beginning on the date of the commencement of the delinquency 
        which immediately preceded the collection activity, charge to 
        profit and loss, or similar action.
            ``(2) Effective date.--Paragraph (1) shall apply only to 
        items of information added to a consumer report on or after the 
        date that is 455 days after the date of enactment of the 
        Consumer Reporting Reform Act of 1995.''.
    (c) Additional Information on Bankruptcy Filings Required.--Section 
605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended by 
adding after subsection (b) (as added by subsection (b) of this 
section) the following new subsection:
    ``(c) Information Required To Be Disclosed.--Any consumer reporting 
agency that furnishes a consumer report that contains information 
regarding any case involving the consumer that arises under title 11, 
United States Code, shall include in the report an identification of 
the chapter of such title 11 under which such case arises if provided 
by the source of the information. If any case arising or filed under 
title 11, United States Code, is withdrawn by the consumer prior to a 
final judgment, the consumer reporting agency shall include in the 
report that such case or filing was withdrawn upon receipt of 
documentation certifying such withdrawal.''.
    (d) Indication of Closure of Account; Indication of Dispute by 
Consumer.--Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
1681c) (as amended by subsection (c) of this section) is amended by 
adding at the end the following new subsections:
    ``(d) Indication of Closure of Account by Consumer.--If a consumer 
reporting agency is notified pursuant to section 623(a)(4) that a 
credit account of a consumer was voluntarily closed by the consumer, 
the agency shall indicate that fact in any consumer report that 
includes information related to the account.
    ``(e) Indication of Dispute by Consumer.--If a consumer reporting 
agency is notified pursuant to section 623(a)(3) that information 
regarding a consumer who was furnished to the agency is disputed by the 
consumer, the agency shall indicate that fact in each consumer report 
that includes the disputed information.''.
    (e) Conforming Amendments.--
            (1) Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
        1681c) is amended in the section heading, by striking 
        ``obsolete information'' and inserting ``requirements relating 
        to information contained in consumer reports''.
            (2) The table of sections for the Fair Credit Reporting Act 
        (15 U.S.C. 1681a et seq.) is amended by striking the item 
        relating to section 605 and inserting the following:

``605. Requirements relating to information contained in consumer 
                            reports.''.

SEC. 407. COMPLIANCE PROCEDURES.

    (a) Disclosure of Consumer Reports by Users.--Section 607 of the 
Fair Credit Reporting Act (15 U.S.C. 1681e) is amended by adding at the 
end the following new subsection:
    ``(c) Disclosure of Consumer Reports by Users Allowed.--A consumer 
reporting agency may not prohibit a user of a consumer report furnished 
by the agency on a consumer from disclosing the contents of the report 
to the consumer, if adverse action against the consumer has been taken 
by the user based in whole or in part on the report.''.
    (b) Notice to Users and Providers of Information To Ensure 
Compliance.--Section 607 of the Fair Credit Reporting Act (15 U.S.C. 
1681e) is amended by adding after subsection (c) (as added by 
subsection (a) of this section) the following new subsection:
    ``(d) Notice to Users and Furnishers of Information.--
            ``(1) Notice requirement.--A consumer reporting agency 
        shall provide to any person--
                    ``(A) who regularly and in the ordinary course of 
                business furnishes information to the agency with 
                respect to any consumer; or
                    ``(B) to whom a consumer report is provided by the 
                agency;
        a notice of such person's responsibilities under this title.
            ``(2) Content of notice.--The Federal Trade Commission 
        shall prescribe the content of notices under paragraph (1).''.
    (c) Record of Identity of Users and Purposes Certified by Users of 
Reports.--Section 607 of the Fair Credit Reporting Act (15 U.S.C. 
1681e) is amended by adding after subsection (d) (as added by 
subsection (b) of this section) the following new subsection:
    ``(e) Procurement of Consumer Report for Resale.--
            ``(1) Disclosure.--A person may not procure a consumer 
        report for purposes of reselling the report (or any information 
        in the report) unless the person discloses to the consumer 
        reporting agency that originally furnishes the report--
                    ``(A) the identity of the end-user of the report 
                (or information); and
                    ``(B) each permissible purpose under section 604 
                for which the report is furnished to the end-user of 
                the report (or information).
            ``(2) Responsibilities of procurers for resale.--A person 
        who procures a consumer report for purposes of reselling the 
        report (or any information in the report) shall--
                    ``(A) establish and comply with reasonable 
                procedures designed to ensure that the report (or 
                information) is resold by the person only for a purpose 
                for which the report may be furnished under section 
                604, including by requiring that each person to which 
                the report (or information) is resold and that resells 
                or provides the report (or information) to any other 
                person--
                            ``(i) identifies each end user of the 
                        resold report (or information);
                            ``(ii) certifies each purpose for which the 
                        report (or information) will be used; and
                            ``(iii) certifies that the report (or 
                        information) will be used for no other purpose; 
                        and
                    ``(B) before reselling the report, make reasonable 
                efforts to verify the identifications and 
                certifications made under subparagraph (A).''.

SEC. 408. CONSUMER DISCLOSURES.

    (a) All Information in Consumer's File Required To Be Disclosed.--
Section 609(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(a)(1)) is amended to read as follows:
            ``(1) All information in the consumer's file at the time of 
        the request, except that nothing in this paragraph shall be 
        construed to require a consumer reporting agency to disclose to 
        a consumer any information concerning credit scores or any 
        other risk scores or predictors relating to the consumer.''.
    (b) More Information Concerning Recipients of Reports Required.--
Section 609(a)(3) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) 
is amended to read as follows:
            ``(3)(A) Identification of each person (including each end-
        user identified under section 607(e)(1)) that procured a 
        consumer report--
                    ``(i) for employment purposes, during the 2-year 
                period preceding the date on which the request is made; 
                or
                    ``(ii) for any other purpose, during the 1-year 
                period preceding the date on which the request is made.
            ``(B) An identification of a person under subparagraph (A) 
        shall include--
                    ``(i) the name of the person or, if applicable, the 
                trade name (written in full) under which such person 
                conducts business; and
                    ``(ii) upon request of the consumer, the address 
                and telephone number of the person.''.
    (c) Information Regarding Inquiries.--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:
            ``(5) A record of all inquiries received by the agency 
        during the 1-year period preceding the request that identified 
        the consumer in connection with a credit or insurance 
        transaction that was not initiated by the consumer.''.
    (d) Summary of Rights Required To Be Included With Disclosure.--
            (1) In general.--Section 609 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681g) is amended by adding at the end the 
        following new subsection:
    ``(c) Summary of Rights Required To Be Included With Disclosure.--
            ``(1) Summary of rights.--A consumer reporting agency shall 
        provide to a consumer, with each written disclosure by the 
        agency to the consumer under this section--
                    ``(A) a written summary of all rights the consumer 
                has under this title; and
                    ``(B) in the case of a consumer reporting agency 
                that compiles and maintains files on consumers on a 
                nationwide basis, a toll-free telephone number 
                established by the agency at which personnel are 
                accessible to consumers during normal business hours.
            ``(2) Specific items required to be included.--The summary 
        of rights required under paragraph (1) shall include--
                    ``(A) a brief description of this title and all 
                rights of consumers under this title;
                    ``(B) an explanation of how the consumer may 
                exercise the rights of the consumer under this title;
                    ``(C) a list of all Federal agencies responsible 
                for enforcing any provision of this title and the 
                address and any appropriate phone number of each such 
                agency, in a form that will assist the consumer in 
                selecting the appropriate agency;
                    ``(D) a statement that the consumer may have 
                additional rights under State law and that the consumer 
                may wish to contact a State or local consumer 
                protection agency or a State attorney general to learn 
                of those rights; and
                    ``(E) a statement that a consumer reporting agency 
                is not required to remove accurate derogatory 
                information from a consumer's file, unless the 
                information is outdated under section 605 or cannot be 
                verified.
            ``(3) Form of summary of rights.--For purposes of this 
        subsection and any disclosure by a consumer reporting agency 
        required under this title with respect to consumers' rights, 
        the Federal Trade Commission (after consultation with each 
        Federal agency referred to in section 621(b)) shall prescribe 
        the form and content of any such disclosure of the rights of 
        consumers required under this title.''.
            (2) Technical amendment.--Section 606(a)(1)(B) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681d(a)(1)(B)) is amended by 
        inserting ``and the written summary of the rights of the 
        consumer prepared pursuant to section 609(c)'' before the 
        semicolon.
    (e) Form of Disclosures.--
            (1) In general.--Subsections (a) and (b) of section 610 of 
        the Fair Credit Reporting Act (15 U.S.C. 1681h) are amended to 
        read as follows:
    ``(a) In General.--
            ``(1) Proper identification.--A consumer reporting agency 
        shall require, as a condition of making the disclosures 
        required under section 609, that the consumer furnish proper 
        identification.
            ``(2) Disclosure in writing.--Except as provided in 
        subsection (b), the disclosures required to be made under 
        section 609 shall be provided under that section in writing.
    ``(b) Other Forms of Disclosure.--
            ``(1) In general.--If authorized by a consumer, a consumer 
        reporting agency may make the disclosures required under 609--
                    ``(A) other than in writing; and
                    ``(B) in such form as may be--
                            ``(i) specified by the consumer in 
                        accordance with paragraph (2); and
                            ``(ii) available from the agency.
            ``(2) Form.--A consumer may specify pursuant to paragraph 
        (1) that disclosures under section 609 shall be made--
                    ``(A) in person, upon the appearance of the 
                consumer at the place of business of the consumer 
                reporting agency where disclosures are regularly 
                provided, during normal business hours, and on 
                reasonable notice;
                    ``(B) by telephone, if the consumer has made a 
                written request for disclosure by telephone;
                    ``(C) by electronic means, if available from the 
                agency; or
                    ``(D) by any other reasonable means that is 
                available from the agency.''.
            (2) Simplified disclosure.--Not later than 90 days after 
        the date of enactment of this Act, each consumer reporting 
        agency shall develop a form on which such consumer reporting 
        agency shall make the disclosures required under section 609(a) 
        of the Fair Credit Reporting Act, for the purpose of maximizing 
        the comprehensibility and standardization of such disclosures.
            (3) Goals.--The Federal Trade Commission shall take 
        appropriate action to assure that the goals of 
        comprehensibility and standardization are achieved in 
        accordance with paragraph (2).
            (4) Conforming amendments.--
                    (A) Section 609(a) of the Fair Credit Reporting Act 
                (15 U.S.C. 1681h(a)) is amended in the matter preceding 
                paragraph (1) by striking ``and proper identification 
                of any consumer'' and inserting ``and subject to 
                section 610(a)(1)''.
                    (B) Section 610 of the Fair Credit Reporting Act 
                (15 U.S.C. 1681h) is amended in the section heading by 
                inserting ``and form'' after ``conditions''.
                    (C) The table of sections at the beginning of the 
                Fair Credit Reporting Act (15 U.S.C. 1681a et seq.) is 
                amended in the item relating to section 610 by 
                inserting ``and form'' after ``Conditions''.

SEC. 409. PROCEDURES IN CASE OF THE DISPUTED ACCURACY OF ANY 
              INFORMATION IN A CONSUMER'S FILE.

    (a) In General.--Section 611(a) of the Fair Credit Reporting Act 
(15 U.S.C. 1681i(a)) is amended to read as follows:
    ``(a) Reinvestigations of Disputed Information.--
            ``(1) Reinvestigation required.--
                    ``(A) In general.--If the completeness or accuracy 
                of any item of information contained in a consumer's 
                file at a consumer reporting agency is disputed by the 
                consumer and the consumer notifies the agency directly 
                of such dispute, the agency shall reinvestigate free of 
                charge and record the current status of the disputed 
                information, or delete the item from the file in 
                accordance with paragraph (5), before the end of the 
                30-day period beginning on the date on which the agency 
                receives the notice of the dispute from the consumer.
                    ``(B) Extension of period to reinvestigate.--Except 
                as provided in subparagraph (C), the 30-day period 
                described in subparagraph (A) may be extended for not 
                more than 15 additional days if the consumer reporting 
                agency receives information from the consumer during 
                that 30-day period that is relevant to the 
                reinvestigation.
                    ``(C) Limitations on extension of period to 
                reinvestigate.--Subparagraph (B) shall not apply to any 
                reinvestigation in which, during the 30-day period 
                described in subparagraph (A), the information that is 
                the subject of the reinvestigation is found to be 
                inaccurate or incomplete or the consumer reporting 
                agency determines that the information cannot be 
                verified.
            ``(2) Prompt notice of dispute to furnisher of 
        information.--
                    ``(A) In general.--Prior to the expiration of the 
                5-business-day period beginning on the date on which a 
                consumer reporting agency receives notice of a dispute 
                from any consumer in accordance with paragraph (1), the 
                agency shall provide notification of the dispute to any 
                person who provided any item of information in dispute, 
                at the address and in the manner established with the 
                person. The notice shall include all relevant 
                information regarding the dispute that the agency has 
                received from the consumer.
                    ``(B) Provision of other information from 
                consumer.--The consumer reporting agency shall promptly 
                provide to the person who provided the information in 
                dispute all relevant information regarding the dispute 
                that is received by the agency from the consumer after 
                the period referred to in subparagraph (A) and before 
                the end of the period referred to in paragraph (1)(A).
            ``(3) Determination that dispute is frivolous or 
        irrelevant.--
                    ``(A) In general.--Notwithstanding paragraph (1), a 
                consumer reporting agency may terminate a 
                reinvestigation of information disputed by a consumer 
                under that paragraph if the agency reasonably 
                determines that the dispute by the consumer is 
                frivolous or irrelevant, including by reason of a 
                failure by a consumer to provide sufficient information 
                to investigate the disputed information.
                    ``(B) Notice of determination.--Upon making any 
                determination in accordance with subparagraph (A) that 
                a dispute is frivolous or irrelevant, a consumer 
                reporting agency shall notify the consumer of such 
                determination not later than 5 business days after 
                making such determination, by mail or, if authorized by 
                the consumer for that purpose, by any other means 
                available to the agency.
                    ``(C) Contents of notice.--A notice under 
                subparagraph (B) shall include--
                            ``(i) the reasons for the determination 
                        under subparagraph (A); and
                            ``(ii) identification of any information 
                        required to investigate the disputed 
                        information, which may consist of a 
                        standardized form describing the general nature 
                        of such information.
            ``(4) Consideration of consumer information.--In conducting 
        any reinvestigation under paragraph (1) with respect to 
        disputed information in the file of any consumer, the consumer 
        reporting agency shall review and consider all relevant 
        information submitted by the consumer in the period described 
        in paragraph (1)(A) with respect to such disputed information.
            ``(5) Treatment of inaccurate or unverifiable 
        information.--
                    ``(A) In general.--If, after any reinvestigation 
                under paragraph (1) of any information disputed by a 
                consumer, an item of the information is found to be 
                inaccurate or incomplete or cannot be verified, the 
                consumer reporting agency shall promptly delete that 
                item of information from the consumer's file. The 
                information deleted shall consist solely of the 
                information that was disputed by the consumer and shall 
                not include any portion of the same item that was not 
                disputed.
                    ``(B) Requirements relating to reinsertion of 
                previously deleted material.--
                            ``(i) Certification of accuracy of 
                        information.--If any information is deleted 
                        from a consumer's file pursuant to subparagraph 
                        (A), the information may not be reinserted in 
                        the file by the consumer reporting agency 
                        unless the person who furnishes the information 
                        certifies that the information is complete and 
                        accurate.
                            ``(ii) Notice to consumer.--If any 
                        information that has been deleted from a 
                        consumer's file pursuant to subparagraph (A) is 
                        reinserted in the file, the consumer reporting 
                        agency shall notify the consumer of the 
                        reinsertion in writing not later than 5 
                        business days after the reinsertion or, if 
                        authorized by the consumer for that purpose, by 
                        any other means available to the agency.
                            ``(iii) Additional information.--As part 
                        of, or in addition to, the notice under clause 
                        (ii), a consumer reporting agency shall provide 
                        to a consumer in writing not later than 5 
                        business days after the date of the 
                        reinsertion--
                                    ``(I) a statement that the disputed 
                                information has been reinserted;
                                    ``(II) the name, business address, 
                                and telephone number of any furnisher 
                                of information contacted, or of any 
                                furnisher of information that contacted 
                                the consumer reporting agency, in 
                                connection with the reinsertion of such 
                                information; and
                                    ``(III) a notice that the consumer 
                                has the right to add a statement to the 
                                consumer's file disputing the accuracy 
                                or completeness of the disputed 
                                information.
                    ``(C) Procedures to prevent reappearance.--A 
                consumer reporting agency shall maintain reasonable 
                procedures designed to prevent the reappearance in a 
                consumer's file, and in consumer reports on the 
                consumer, of information that is deleted pursuant to 
                this paragraph (other than information that is 
                reinserted in accordance with subparagraph (B)(i)).
                    ``(D) Automated reinvestigation system.--Any 
                consumer reporting agency that compiles and maintains 
                files on consumers on a nationwide basis shall 
                implement an automated system through which furnishers 
                of information to that consumer reporting agency may 
                report the results of a reinvestigation that finds 
                incomplete or inaccurate information in a consumer's 
                file to other such consumer reporting agencies.
            ``(6) Notice of results of reinvestigation.--
                    ``(A) In general.--A consumer reporting agency 
                shall provide written notice to a consumer of the 
                results of a reinvestigation under this subsection not 
                later than 5 business days after the completion of the 
                reinvestigation, by mail or, if authorized by the 
                consumer for that purpose, by other means available to 
                the agency.
                    ``(B) Contents.--As part of, or in addition to, the 
                notice under subparagraph (A), a consumer reporting 
                agency shall provide to a consumer in writing prior to 
                the expiration of the 5-day period referred to in 
                subparagraph (A)--
                            ``(i) a statement that the reinvestigation 
                        is completed;
                            ``(ii) a consumer report that is based upon 
                        the consumer's file as that file is revised as 
                        a result of the reinvestigation;
                            ``(iii) a description or indication of any 
                        changes made in the consumer report as a result 
                        of those revisions to the consumer's file;
                            ``(iv) a notice that, if requested by the 
                        consumer, a description of the procedure used 
                        to determine the accuracy and completeness of 
                        the information shall be provided to the 
                        consumer by the agency, including the name, 
                        business address, and telephone number of any 
                        furnisher of information contacted in 
                        connection with such information;
                            ``(v) a notice that the consumer has the 
                        right to add a statement to the consumer's file 
                        disputing the accuracy or completeness of the 
                        information; and
                            ``(vi) a notice that the consumer has the 
                        right to request under subsection (d) that the 
                        consumer reporting agency furnish notifications 
                        under that subsection.
            ``(7) Description of reinvestigation procedure.--A consumer 
        reporting agency shall provide to a consumer a description 
        referred to in paragraph (6)(B)(iv) by not later than 15 days 
        after receiving a request from the consumer for that 
        description.
            ``(8) Expedited dispute resolution.--If a dispute regarding 
        an item of information in a consumer's file at a consumer 
        reporting agency is resolved in accordance with paragraph 
        (5)(A) by the deletion of the disputed information by not later 
        than 3 business days after the date on which the agency 
        receives notice of the dispute from the consumer in accordance 
        with paragraph (1)(A), then the agency shall not be required to 
        comply with paragraphs (2), (6), and (7) with respect to that 
        dispute if the agency--
                    ``(A) provides prompt notice of the deletion to the 
                consumer by telephone;
                    ``(B) includes in that notice, or in a written 
                notice that accompanies a confirmation and consumer 
                report provided in accordance with subparagraph (C), a 
                statement of the consumer's right to request under 
                subsection (d) that the agency furnish notifications 
                under that subsection; and
                    ``(C) provides written confirmation of the deletion 
                and a copy of a consumer report on the consumer that is 
                based on the consumer's file after the deletion, not 
                later than 5 business days after making the 
                deletion.''.
    (b) Conforming Amendment.--Section 611(d) of the Fair Credit 
Reporting Act (15 U.S.C. 1681i(d)) is amended by striking ``The 
consumer reporting agency shall clearly'' and all that follows through 
the end of the subsection.

SEC. 410. CHARGES FOR CERTAIN DISCLOSURES.

    Section 612 of the Fair Credit Reporting Act (15 U.S.C. 1681j) is 
amended to read as follows:

``SEC. 612. CHARGES FOR CERTAIN DISCLOSURES.

    ``(a) Reasonable Charges Allowed for Certain Disclosures.--Except 
as provided in subsections (b), (c), and (d), a consumer reporting 
agency may impose a reasonable charge on a consumer--
            ``(1) for making a disclosure to the consumer pursuant to 
        section 609, which charge--
                    ``(A) shall not exceed $8; and
                    ``(B) shall be indicated to the consumer prior to 
                making disclosure; and
            ``(2) for furnishing pursuant to section 611(d), following 
        a reinvestigation under section 611(a), a statement, 
        codification, or summary to a person designated by the consumer 
        under that section after the 30-day period beginning on the 
        date of notification of the consumer under paragraph (6) or (8) 
        of section 611(a) with respect to the reinvestigation, which 
        charge--
                    ``(A) shall not exceed the charge that the agency 
                would impose on each designated recipient for a 
                consumer report; and
                    ``(B) shall be indicated to the consumer prior to 
                furnishing such information.
    ``(b) Free Consumer Report After Adverse Notice to Consumer.--Each 
consumer reporting agency that maintains a file on a consumer shall 
make all disclosures pursuant to section 609 without charge to the 
consumer if, not later than 60 days after receipt by such consumer of a 
notification pursuant to section 615, or of a notification from a debt 
collection agency affiliated with that consumer reporting agency 
stating that the consumer's credit rating may be or has been adversely 
affected, the consumer makes a request under section 609.
    ``(c) Free Consumer Report Under Certain Other Circumstances.--Upon 
the request of the consumer, a consumer reporting agency shall make all 
disclosures pursuant to section 609 once during any 12-month period 
without charge to that consumer if the consumer certifies in writing 
that the consumer--
            ``(1) is unemployed and intends to apply for employment in 
        the 60-day period beginning on the date on which the 
        certification is made;
            ``(2) is a recipient of public welfare assistance; or
            ``(3) has reason to believe that the file on the consumer 
        at the agency contains inaccurate information due to fraud.
    ``(d) Other Charges Prohibited.--A consumer reporting agency shall 
not impose any charge on a consumer for providing any notification 
required by this Act or making any disclosure required by this Act, 
except as authorized by subsection (a).''.

SEC. 411. DUTIES OF USERS OF CONSUMER REPORTS.

    (a) Duties of Users Taking Adverse Actions.--Section 615(a) of the 
Fair Credit Reporting Act (15 U.S.C. 1681m(a)) is amended to read as 
follows:
    ``(a) Duties of Users Taking Adverse Actions on the Basis of 
Information Contained in Consumer Reports.--If any person takes any 
adverse action with respect to any consumer that is based in whole or 
in part on any information contained in a consumer report, the person 
shall--
            ``(1) provide written or electronic notice of the adverse 
        action to the consumer;
            ``(2) provide to the consumer in writing or 
        electronically--
                    ``(A) the name, address, and telephone number of 
                the consumer reporting agency (including a toll-free 
                telephone number established by the agency if the 
                agency compiles and maintains files on consumers on a 
                nationwide basis) that furnished the report to the 
                person; and
                    ``(B) a statement that the consumer reporting 
                agency did not make the decision to take the adverse 
                action and is unable to provide the consumer the 
                specific reasons why the adverse action was taken; and
            ``(3) provide to the consumer a written or electronic 
        notice of the consumer's right--
                    ``(A) to obtain, under section 612, a free copy of 
                a consumer report on the consumer from the consumer 
                reporting agency referred to in paragraph (2), which 
                notice shall include an indication of the 60-day period 
                under that section for obtaining such a copy; and
                    ``(B) to dispute, under section 611, with a 
                consumer reporting agency the accuracy or completeness 
                of any information in a consumer report furnished by 
                the agency.''.
    (b) Duties of Users Making Certain Credit Solicitations.--Section 
615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is amended by 
adding at the end the following new subsection:
    ``(d) Duties of Users Making Written Credit or Insurance 
Solicitations on the Basis of Information Contained in Consumer 
Files.--
            ``(1) In general.--Any person who uses a consumer report on 
        any consumer in connection with any credit or insurance 
        transaction that is not initiated by the consumer, that is 
        provided to that person under section 604(c)(1)(B), shall 
        provide with each written solicitation made to the consumer 
        regarding the transaction a clear and conspicuous statement 
        that--
                    ``(A) information contained in the consumer's 
                consumer report was used in connection with the 
                transaction;
                    ``(B) the consumer received the offer of credit or 
                insurance because the consumer satisfied the criteria 
                for creditworthiness or insurability under which the 
                consumer was selected for the offer;
                    ``(C) if applicable, the credit or insurance may 
                not be extended if, after the consumer responds to the 
                offer, the consumer does not meet the criteria used to 
                select the consumer for the offer or any applicable 
                criteria bearing on creditworthiness or insurability or 
                does not furnish any required collateral;
                    ``(D) the consumer has a right to prohibit 
                information contained in the consumer's file with any 
                consumer reporting agency from being used in connection 
                with any credit or insurance transaction that is not 
                initiated by the consumer; and
                    ``(E) the consumer may exercise the right referred 
                to in subparagraph (D) by notifying a notification 
                system established under section 604(e).
            ``(2) Disclosure of address and telephone number.--A 
        statement under paragraph (1) shall include the address and 
        toll-free telephone number of the appropriate notification 
        system established under section 604(e).
            ``(3) Maintaining criteria on file.--A person who makes an 
        offer of credit or insurance to a consumer under a credit or 
        insurance transaction described in paragraph (1) shall maintain 
        on file the criteria used to select the consumer to receive the 
        offer, all criteria bearing on creditworthiness or 
        insurability, as applicable, that are the basis for determining 
        whether or not to extend credit or insurance pursuant to the 
        offer, and any requirement for the furnishing of collateral as 
        a condition of the extension of credit or insurance, until the 
        expiration of the 3-year period beginning on the date on which 
        the offer is made to the consumer.
            ``(4) Authority of federal agencies regarding unfair or 
        deceptive acts or practices not affected.--This section is not 
        intended to affect the authority of any Federal agency to 
        enforce a prohibition against unfair or deceptive acts or 
        practices, including the making of false or misleading 
        statements in connection with a credit or insurance transaction 
        that is not initiated by the consumer.''.
    (c) Duties of Users Making Other Solicitations.--Section 615 of the 
Fair Credit Reporting Act (15 U.S.C. 1681m) is amended by adding at the 
end the following new subsection:
    ``(e) Duties of Users Making Other Written Solicitations on the 
Basis of Information Contained in Consumer Files.--
            ``(1) In general.--A person who, in connection with any 
        direct marketing transaction that is not initiated by a 
        consumer, uses a consumer report on that consumer that is 
        provided to that person under section 604(a)(3)(E)(i)(II), 
        shall provide with the initial written solicitation made to the 
        consumer regarding the transaction a clear and conspicuous 
        statement that--
                    ``(A) information contained in the consumer's 
                consumer report was used in connection with the 
                transaction;
                    ``(B) the consumer has a right to prohibit 
                information contained in the consumer's file with any 
                consumer reporting agency from being used in connection 
                with any direct marketing transaction that is not 
                initiated by the consumer; and
                    ``(C) the consumer may exercise the right referred 
                to in subparagraph (B) by notifying a notification 
                system established under section 604(e).
            ``(2) Disclosure of address and telephone number.--A 
        statement under paragraph (1) shall include the address and 
        toll-free telephone number of the appropriate notification 
        system established under section 604(e).
            ``(3) Authority of federal agencies regarding unfair or 
        deceptive acts or practices not affected.--This section is not 
        intended to affect the authority of any Federal agency to 
        enforce a prohibition against unfair or deceptive acts or 
        practices, including the making of false or misleading 
        statements in connection with a direct marketing transaction 
        that is not initiated by the consumer.''.
    (d) Conforming Amendment.--Section 615(c) of the Fair Credit 
Reporting Act (15 U.S.C. 1681m(c)) is amended by striking ``subsections 
(a) and (b)'' and inserting ``this section''.

SEC. 412. CIVIL LIABILITY.

    (a) Civil Liability for Willful Noncompliance.--Section 616 of the 
Fair Credit Reporting Act (15 U.S.C. 1681n) is amended by striking 
``Any consumer reporting agency or user of information which'' and 
inserting ``(a) In General.--Any person who''.
    (b) Minimum Civil Liability for Willful Noncompliance.--Section 
616(1) of the Fair Credit Reporting Act (15 U.S.C. 1681n(1)) is amended 
to read as follows:
            ``(1)(A) any actual damages sustained by the consumer as a 
        result of the failure or damages of not less than $100 and not 
        more than $1,000; or
            ``(B) in the case of liability of a natural person for 
        obtaining a consumer report under false pretenses or knowingly 
        without a permissible purpose, actual damages sustained by the 
        consumer as a result of the failure or $1,000, whichever is 
        greater;''.
    (c) Civil Liability for Knowing Noncompliance.--Section 616 of the 
Fair Credit Reporting Act (15 U.S.C. 1681n) is amended by adding at the 
end the following:
    ``(c) Civil Liability for Knowing Noncompliance.--Any person who 
obtains a consumer report from a consumer reporting agency under false 
pretenses or knowingly without a permissible purpose shall be liable to 
the consumer reporting agency for actual damages sustained by the 
consumer reporting agency or $1,000, whichever is greater.''.
    (d) Civil Liability for Negligent Noncompliance.--Section 617 of 
the Fair Credit Reporting Act (15 U.S.C. 1681o) is amended by striking 
``Any consumer reporting agency or user of information which'' and 
inserting ``(a) In General.--Any person who''.
    (e) Attorney's Fees.--
            (1) Willful noncompliance.--Section 616 of the Fair Credit 
        Reporting Act (15 U.S.C. 1681n) is amended by adding at the end 
        the following new subsection:
    ``(b) Attorney's Fees.--On a finding by the court that an 
unsuccessful pleading, motion, or other paper filed in connection with 
an action under this section was filed in bad faith or for purposes of 
harassment, the court shall award to the prevailing party attorney's 
fees reasonable in relation to the work expended in responding to the 
pleading, motion, or other paper.''.
            (2) Negligent noncompliance.--Section 617 of the Fair 
        Credit Reporting Act (15 U.S.C. 1681o) is amended by adding at 
        the end the following new subsection:
    ``(b) Attorney's Fees.--On a finding by the court that an 
unsuccessful pleading, motion, or other paper filed in connection with 
an action under this section was filed in bad faith or for purposes of 
harassment, the court shall award to the prevailing party attorney's 
fees reasonable in relation to the work expended in responding to the 
pleading, motion, or other paper.''.

SEC. 413. RESPONSIBILITIES OF PERSONS WHO FURNISH INFORMATION TO 
              CONSUMER REPORTING AGENCIES.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended--
            (1) by redesignating section 623 as section 624; and
            (2) by inserting after section 622 the following:

``SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO CONSUMER 
              REPORTING AGENCIES.

    ``(a) Duty of Furnishers of Information To Provide Complete and 
Accurate Information.--
            ``(1) Prohibitions.--A person shall not furnish any 
        information relating to a consumer to any consumer reporting 
        agency if the person knows that the information is incomplete 
        or inaccurate.
            ``(2) Duty to correct and update information.--A person 
        who--
                    ``(A) regularly and in the ordinary course of 
                business furnishes information to one or more consumer 
                reporting agencies about the person's transactions or 
                experiences with any consumer; and
                    ``(B) has furnished to a consumer reporting agency 
                information that the person determines is not complete 
                or accurate;
        shall promptly notify the consumer reporting agency of that 
        determination and provide to the agency any corrections to that 
        information, or any additional information, that is necessary 
        to make the information provided by the person to the agency 
        complete and accurate, and shall not thereafter furnish to the 
        agency any of the information that remains not complete or 
        accurate.
            ``(3) Duty to provide notice of dispute.--If the 
        completeness or accuracy of any information furnished by any 
        person to any consumer reporting agency is disputed to such 
        person by a consumer, the person may not furnish the 
        information to any consumer reporting agency without notice 
        that such information is disputed by the consumer.
            ``(4) Duty to provide notice of closed accounts.--A person 
        who regularly and in the ordinary course of business furnishes 
        information to a consumer reporting agency regarding a consumer 
        who has a credit account with that person shall notify the 
        agency of the voluntary closure of the account by the consumer, 
        in information regularly furnished for the period in which the 
        account is closed.
            ``(5) Duty to provide notice of delinquency of accounts.--A 
        person who furnishes information to a consumer reporting agency 
        regarding a delinquent account being placed for collection, 
        charged to profit or loss, or subjected to any similar action 
        shall, not later than 90 days after furnishing the information, 
        notify the agency of the month and year of the commencement of 
        the delinquency that immediately preceded the action.
    ``(b) Duties of Furnishers of Information Upon Notice of Dispute.--
            ``(1) In general.--After receiving notice pursuant to 
        section 611(a)(2) of a dispute with regard to the completeness 
        or accuracy of any information provided by a person to a 
        consumer reporting agency, the person shall--
                    ``(A) conduct an investigation with respect to the 
                disputed information;
                    ``(B) review all relevant information provided by 
                the consumer reporting agency pursuant to section 
                611(a)(2);
                    ``(C) report the results of the investigation to 
                the consumer reporting agency; and
                    ``(D) if the investigation finds that the 
                information is incomplete or inaccurate, report those 
                results to all other consumer reporting agencies to 
                which the person furnished the information and that 
                compile and maintain files on consumers on a nationwide 
                basis.
            ``(2) Deadline.--A person shall complete all 
        investigations, reviews, and reports required under paragraph 
        (1) regarding information provided by the person to a consumer 
        reporting agency, prior to the expiration of the period under 
        section 611(a)(1) within which the consumer reporting agency is 
        required to complete actions required by that section regarding 
        that information.
    ``(c) Limitation on Liability.--Sections 616 and 617 do not apply 
to any failure to comply with subsection (a), except as provided in 
section 621(c)(1)(B).
    ``(d) Limitation on Enforcement.--Subsection (a) shall be enforced 
exclusively under section 621 by the Federal agencies and officials and 
the State officials identified in that section.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of the Fair Credit Reporting Act (15 U.S.C. 1681a et seq.) is amended 
by striking the item relating to section 623 and inserting the 
following:

``623. Responsibilities of furnishers of information to consumer 
                            reporting agencies.
``624. Relation to State laws.''.

SEC. 414. INVESTIGATIVE CONSUMER REPORTS.

    Section 606 of the Fair Credit Reporting Act (15 U.S.C. 1681d) is 
amended--
            (1) in subsection (a)(1), by striking ``or'' after the 
        semicolon at the end and inserting ``and'';
            (2) by striking subsection (a)(2) and inserting the 
        following:
            ``(2) the person certifies or has certified to the consumer 
        reporting agency that--
                    ``(A) the person has made the disclosures to the 
                consumer required by paragraph (1); and
                    ``(B) the person will comply with subsection 
                (b).'';
            (3) in subsection (b), by striking ``shall'' the second 
        place such term appears; and
            (4) by adding at the end the following new subsection:
    ``(d) Prohibitions.--
            ``(1) Certification.--A consumer reporting agency shall not 
        prepare or furnish an investigative consumer report unless the 
        agency has received a certification under subsection (a)(2) 
        from the person who requested the report.
            ``(2) Inquiries.--A consumer reporting agency shall not 
        make an inquiry for the purpose of preparing an investigative 
        consumer report on a consumer for employment purposes if the 
        making of the inquiry by an employer or prospective employer of 
        the consumer would violate any applicable Federal or State 
        equal employment opportunity law or regulation.
            ``(3) Certain public record information.--Except as 
        otherwise provided in section 613, a consumer reporting agency 
        shall not furnish an investigative consumer report that 
        includes information that is a matter of public record and that 
        relates to an arrest, indictment, conviction, civil judicial 
        action, tax lien, or outstanding judgment, unless the agency 
        has verified the accuracy of the information during the 30-day 
        period ending on the date on which the report is furnished.
            ``(4) Certain adverse information.--A consumer reporting 
        agency shall not prepare or furnish an investigative consumer 
        report on a consumer that contains information that is adverse 
        to the interest of the consumer and that is obtained through a 
        personal interview with a neighbor, friend, or associate of the 
        consumer or with another person with whom the consumer is 
        acquainted or who has knowledge of such item of information, 
        unless--
                    ``(A) the agency has followed reasonable procedures 
                to obtain confirmation of the information, from an 
                additional source that has independent and direct 
                knowledge of the information; or
                    ``(B) the person interviewed is the best possible 
                source of the information.''.

SEC. 415. INCREASED CRIMINAL PENALTIES FOR OBTAINING INFORMATION UNDER 
              FALSE PRETENSES.

    (a) Obtaining Information Under False Pretenses.--Section 619 of 
the Fair Credit Reporting Act (15 U.S.C. 1681q) is amended by striking 
``fined not more than $5,000 or imprisoned not more than one year, or 
both'' and inserting ``fined under title 18, United States Code, 
imprisoned for not more than 2 years, or both''.
    (b) Unauthorized Disclosures by Officers or Employees.--Section 620 
of the Fair Credit Reporting Act (15 U.S.C. 1681r) is amended by 
striking ``fined not more than $5,000 or imprisoned not more than one 
year, or both'' and inserting ``fined under title 18, United States 
Code, imprisoned for not more than 2 years, or both''.

SEC. 416. ADMINISTRATIVE ENFORCEMENT.

    (a) Available Enforcement Powers.--Section 621(a) of the Fair 
Credit Reporting Act (15 U.S.C. 1681s(a))--
            (1) is amended in the second sentence, by striking ``Act 
        and shall be subject to enforcement by the Federal Trade 
        Commission under section 5(b) thereof with respect to any 
        consumer reporting agency or person subject to enforcement by 
        the Federal Trade Commission pursuant to this subsection, 
        irrespective'' and inserting ``Act. All functions and powers of 
        the Federal Trade Commission under the Federal Trade Commission 
        Act shall be available to the Commission to enforce compliance 
        with this title by any person subject to enforcement by the 
        Federal Trade Commission pursuant to this subsection and not 
        subject to enforcement pursuant to section 8 of the Federal 
        Deposit Insurance Act, irrespective'';
            (2) as amended by paragraph (1) of this subsection, is 
        amended by inserting before the third period the following: ``, 
        including the power to enforce the provisions of this title in 
        the same manner as if the violation had been a violation of any 
        Federal Trade Commission trade regulation rule''; and
            (3) as amended by paragraph (1) of this subsection, is 
        amended by adding after the third period the following: 
        ``Notwithstanding the preceding sentence, a court may not 
        impose any civil penalty on a person for a violation of section 
        623(a)(1) unless the person has been enjoined from committing 
        the violation, or ordered not to commit the violation, in an 
        action or proceeding brought by or on behalf of the Federal 
        Trade Commission and has violated the injunction or order, and 
        the court may not impose any civil penalty for any violation 
        occurring before the date of the violation of the injunction or 
        order.''.
    (b) Agencies Responsible for Enforcement.--Section 621 of the Fair 
Credit Reporting Act (15 U.S.C. 1681s) is amended--
            (1) in subsection (a), by inserting ``Enforcement by 
        Federal Trade Commission.--'' before ``Compliance with the 
        requirements''; and
            (2) in subsection (b), by striking the matter preceding 
        paragraph (1) and inserting the following:
    ``(b) Enforcement by Other Agencies.--Compliance with the 
requirements imposed under this title with respect to consumer 
reporting agencies, persons who use consumer reports from such 
agencies, persons who furnish information to such agencies, and users 
of information that are subject to subsection (d) or (e) of section 615 
shall be enforced under--''.

SEC. 417. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT.

    Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) State Action for Violations.--
            ``(1) Authority of states.--In addition to such other 
        remedies as are provided under State law, if the chief law 
        enforcement officer of a State, or an official or agency 
        designated by a State, has reason to believe that any person 
        has violated or is violating this title, the State--
                    ``(A) may bring an action to enjoin such violation 
                in any appropriate United States district court or in 
                any other court of competent jurisdiction;
                    ``(B) subject to paragraph (5), may bring an action 
                on behalf of the residents of the State to recover--
                            ``(i) damages for which the person is 
                        liable to such residents under sections 616 and 
                        617 as a result of the violation;
                            ``(ii) in the case of a violation of 
                        section 623(a), damages for which the person 
                        would, but for section 623(c), be liable to 
                        such residents as a result of the violation; or
                            ``(iii) damages of not more than $1,000 for 
                        each willful or negligent violation; and
                    ``(C) in the case of any successful action under 
                subparagraph (A) or (B), shall be awarded the costs of 
                the action and reasonable attorney fees as determined 
                by the court.
            ``(2) Rights of federal regulators.--The State shall serve 
        prior written notice of any action under paragraph (1) upon the 
        Federal Trade Commission or the appropriate Federal regulator 
        determined under subsection (b) and provide the Commission or 
        appropriate Federal regulator with a copy of its complaint, 
        except in any case in which such prior notice is not feasible, 
        in which case the State shall serve such notice immediately 
        upon instituting such action. The Federal Trade Commission or 
        appropriate Federal regulator shall have the right--
                    ``(A) to intervene in the action;
                    ``(B) upon so intervening, to be heard on all 
                matters arising therein;
                    ``(C) to remove the action to the appropriate 
                United States district court; and
                    ``(D) to file petitions for appeal.
            ``(3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, nothing in this subsection shall 
        prevent the chief law enforcement officer, or an official or 
        agency designated by a State, from exercising the powers 
        conferred on the chief law enforcement officer or such official 
        by the laws of such State to conduct investigations or to 
        administer oaths or affirmations or to compel the attendance of 
        witnesses or the production of documentary and other evidence.
            ``(4) Limitation on state action while federal action 
        pending.--If the Federal Trade Commission or the appropriate 
        Federal regulator has instituted a civil action or an 
        administrative action under section 8 of the Federal Deposit 
        Insurance Act for a violation of this title, no State may, 
        during the pendency of such action, bring an action under this 
        section against any defendant named in the complaint of the 
        Commission or the appropriate Federal regulator for any 
        violation of this title that is alleged in that complaint.
            ``(5) Limitations on state actions for violation of section 
        623(a)(1).--
                    ``(A) Violation of injunction required.--A State 
                may not bring an action against a person under 
                paragraph (1)(B) for a violation of section 623(a)(1), 
                unless--
                            ``(i) the person has been enjoined from 
                        committing the violation, in an action brought 
                        by the State under paragraph (1)(A); and
                            ``(ii) the person has violated the 
                        injunction.
                    ``(B) Limitation on damages recoverable.--In an 
                action against a person under paragraph (1)(B) for a 
                violation of section 623(a)(1), a State may not recover 
                any damages incurred before the date of the violation 
                of an injunction on which the action is based.''.

SEC. 418. FEDERAL RESERVE BOARD AUTHORITY.

    Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is 
amended by adding at the end the following new subsection:
    ``(e) Interpretive Authority.--The Board of Governors of the 
Federal Reserve System may issue interpretations of any provision of 
this title as such provision may apply to any persons identified under 
paragraph (1), (2), and (3) of subsection (b), or to the holding 
companies and affiliates of such persons, in consultation with Federal 
agencies identified in paragraphs (1), (2), and (3) of subsection 
(b).''.

SEC. 419. PREEMPTION OF STATE LAW.

    Section 624 of the Fair Credit Reporting Act (as redesignated by 
section 413(a) of this Act) is amended--
            (1) by striking ``This title'' and inserting ``(a) In 
        General.--Except as provided in subsections (b) and (c), this 
        title''; and
            (2) by adding at the end the following new subsection:
    ``(b) General Exceptions.--No requirement or prohibition may be 
imposed under the laws of any State--
            ``(1) with respect to any subject matter regulated under--
                    ``(A) subsection (c) or (e) of section 604, 
                relating to the prescreening of consumer reports;
                    ``(B) section 611, relating to the time by which a 
                consumer reporting agency must take any action, 
                including the provision of notification to a consumer 
                or other person, in any procedure related to the 
                disputed accuracy of information in a consumer's file, 
                except that this subparagraph does not apply to any 
                State law in effect on the date of enactment of the 
                Consumer Reporting Reform Act of 1995;
                    ``(C) subsections (a) and (b) of section 615, 
                relating to the duties of a person who takes any 
                adverse action with respect to a consumer;
                    ``(D) section 615(d), relating to the duties of 
                persons who use a consumer report of a consumer in 
                connection with any credit or insurance transaction 
                that is not initiated by the consumer and that consists 
                of a firm offer of credit or insurance;
                    ``(E) section 615(e), relating to the duties of 
                persons who use a consumer report of a consumer in 
                connection with any direct marketing transaction that 
                is not initiated by the consumer;
                    ``(F) section 605, relating to information 
                contained in consumer reports, except that this 
                subparagraph does not apply to any State law in effect 
                on the date of enactment of the Consumer Reporting 
                Reform Act of 1995; or
                    ``(G) section 623(b)(2), relating to the time by 
                which a person must take any action required under 
                section 623(b)(1) with respect to an investigation of 
                information furnished by the person to a consumer 
                reporting agency, except that this subparagraph does 
                not apply to any State law in effect on the date of 
                enactment of the Consumer Reporting Reform Act of 1995;
            ``(2) with respect to the exchange of information among 
        persons affiliated by common ownership or common corporate 
        control; or
            ``(3) with respect to the form and content of any 
        disclosure required to be made under section 609(c).
    ``(c) Definition of Firm Offer of Credit or Insurance.--
Notwithstanding any definition of the term `firm offer of credit or 
insurance' (or any equivalent term) under the laws of any State, the 
definition of that term contained in section 603(l) shall be construed 
to apply in the enforcement and interpretation of the laws of any State 
governing consumer reports.
    ``(d) Limitations.--Subsections (b) and (c)--
            ``(1) do not affect any settlement, agreement, or consent 
        judgment between any State Attorney General and any consumer 
        reporting agency in effect on the date of enactment of the 
        Consumer Reporting Reform Act of 1995; and
            ``(2) do not apply to any provision of State law (including 
        any provision of a State constitution) that--
                    ``(A) is enacted after January 1, 2004;
                    ``(B) states explicitly that the provision is 
                intended to supplement this Act; and
                    ``(C) gives greater protection to consumers than is 
                provided under this Act.''.

SEC. 420. ACTION BY FTC AND FEDERAL RESERVE BOARD.

    (a) Modification of Requirements by FTC and Federal Reserve Board 
Authorized.--
            (1) In general.--Section 621 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681s) is amended by adding at the end the 
        following new subsection:
    ``(f) Modification of Requirements by FTC Authorized.--
            ``(1) In general.--If the Federal Trade Commission 
        considers such action necessary for the protection of 
        consumers, the Commission may, after consultation with 
        appropriate State regulatory and law enforcement agencies, 
        promulgate regulations in accordance with section 553 of title 
        5, United States Code, to impose, with respect to consumer 
        reporting agencies and all other persons subject to this title 
        other than any person described in paragraph (1), (2), or (3) 
        of subsection (b), requirements--
                    ``(A) that are more stringent than those imposed 
                under--
                            ``(i) section 611, relating to the time by 
                        which a consumer reporting agency must take any 
                        action, including the provision of notification 
                        to a consumer or other person, in any procedure 
                        related to the disputed accuracy of information 
                        in a consumer's file;
                            ``(ii) section 615(a), relating to the 
                        disclosure requirements applicable to a person 
                        who takes any adverse action with respect to a 
                        consumer on the basis of information contained 
                        in a consumer report;
                            ``(iii) section 615(d), relating to the 
                        disclosure requirements applicable to persons 
                        who use a consumer report on a consumer in 
                        connection with any credit or insurance 
                        transaction that is not initiated by the 
                        consumer and that consists of a firm offer of 
                        credit or insurance; or
                            ``(iv) section 623(b)(2), relating to the 
                        time by which a person must take any action 
                        required under section 623(b)(1) with respect 
                        to an investigation of information furnished by 
                        the person to a consumer reporting agency; and
                    ``(B) with respect to the form and content of any 
                disclosure required to be made under section 609(c).
            ``(2) Federal reserve board authority.--If the Board of 
        Governors of the Federal Reserve System determines such action 
        to be necessary for the protection of consumers, the Board may 
        prescribe regulations imposing on persons described in 
        paragraph (1), (2), or (3) of subsection (b) or on the holding 
        companies and affiliates of such persons, any requirement 
        described in paragraph (1) of this subsection.''.
            (2) Conforming amendments.--
                    (A) The section heading and section designation for 
                section 621 of the Fair Credit Reporting Act (15 U.S.C. 
                1681s) are amended to read as follows:

``SEC. 621. ADMINISTRATIVE ENFORCEMENT AND AUTHORITIES; STATE 
              ACTIONS.''.

                    (B) The table of sections at the beginning of the 
                Fair Credit Reporting Act is amended by striking the 
                item relating to section 621 and inserting the 
                following:

``621. Administrative enforcement and authorities; State actions.''.
    (b) Deadline To Prescribe Matters.--The Federal Trade Commission 
shall prescribe all matters required by this title (including the 
amendments made by this title) to be prescribed by that Commission, 
before the end of the 300-day period beginning on the date of enactment 
of this Act.

SEC. 421. AMENDMENT TO FAIR DEBT COLLECTION PRACTICES ACT.

    (a) In General.--Section 807(11) of the Fair Debt Collection 
Practices Act (15 U.S.C. 1692e), relating to certain practices 
constituting prohibited representations, is amended to read as follows:
            ``(11) The failure to disclose clearly, in any written 
        communication made to collect a debt or to obtain information 
        about a consumer, that the debt collector is attempting to 
        collect a debt and that any information obtained will be used 
        for that purpose, except that this paragraph does not apply to 
        a communication--
                    ``(A) to acquire location information in accordance 
                with section 804;
                    ``(B) made solely to acknowledge receipt of moneys 
                or payments;
                    ``(C) that consists solely of information requested 
                by the consumer or the consumer's attorney; or
                    ``(D) that is a formal pleading made in connection 
                with a legal action.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective 90 days after the date of enactment of this Act.

SEC. 422. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING TO 
              CHILD SUPPORT.

    Section 604(a) of the Fair Credit Reporting Act (15 U.S.C. 1681b) 
(as so designated by section 403 of this Act) is amended by adding at 
the end the following new paragraph:
            ``(4) In response to a request by the head of a department, 
        agency, or office of any State or any political subdivision of 
        any State that is responsible under law for enforcing child 
        support orders (or an official authorized by the head of any 
        such department, agency, or office), if the person making the 
        request certifies to the consumer reporting agency that--
                    ``(A) the consumer report is needed to establish an 
                individual's capacity to make child support payments, 
                or to determine the appropriate level of such payments;
                    ``(B) the person has provided not less than 10 days 
                prior written notice to the consumer whose report is 
                requested, by certified or registered mail to the last 
                known address of the consumer, that the report will be 
                requested; and
                    ``(C) the consumer report obtained pursuant to this 
                paragraph will be kept confidential, will be used 
                solely for establishing child support payment 
                obligations, and will not be used in connection with 
                any other civil, administrative, or criminal proceeding 
                or for any other purpose.''.

SEC. 423. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO FBI FOR 
              COUNTERINTELLIGENCE PURPOSES.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by adding at the end the following new section:

``SEC. 625. DISCLOSURES TO FBI FOR COUNTERINTELLIGENCE PURPOSES.

    ``(a) Identity of Financial Institutions.--Notwithstanding section 
604 or any other provision of this title, a consumer reporting agency 
shall furnish to the Federal Bureau of Investigation the names and 
addresses of all financial institutions (as that term is defined in 
section 1101 of the Right to Financial Privacy Act of 1978) at which a 
consumer maintains or has maintained an account, to the extent that 
information is in the files of the agency, when presented with a 
written request for that information, signed by the Director of the 
Federal Bureau of Investigation, or the Director's designee, that 
certifies compliance with this section. The Director or the Director's 
designee may make such a certification only if the Director or the 
Director's designee has determined in writing that--
            ``(1) such information is necessary for the conduct of an 
        authorized foreign counterintelligence investigation; and
            ``(2) there are specific and articulable facts giving 
        reason to believe that the consumer--
                    ``(A) is a foreign power (as defined in section 101 
                of the Foreign Intelligence Surveillance Act of 1978) 
                or a person who is not a United States person (as 
                defined in such section 101) and is an official of a 
                foreign power; or
                    ``(B) is an agent of a foreign power and is 
                engaging or has engaged in international terrorism (as 
                that term is defined in section 101(c) of the Foreign 
                Intelligence Surveillance Act of 1978) or clandestine 
                intelligence activities that involve or may involve a 
                violation of criminal statutes of the United States.
    ``(b) Identifying Information.--Notwithstanding the provisions of 
section 604 or any other provision of this title, a consumer reporting 
agency shall furnish identifying information respecting a consumer, 
limited to name, address, former addresses, places of employment, or 
former places of employment, to the Federal Bureau of Investigation 
when presented with a written request, signed by the Director or the 
Director's designee, that certifies compliance with this subsection. 
The Director or the Director's designee may make such a certification 
only if the Director or the Director's designee has determined in 
writing that--
            ``(1) such information is necessary to the conduct of an 
        authorized counterintelligence investigation; and
            ``(2) there is information giving reason to believe that 
        the consumer has been, or is about to be, in contact with a 
        foreign power or an agent of a foreign power (as defined in 
        section 101 of the Foreign Intelligence Surveillance Act of 
        1978).
    ``(c) Court Order for Disclosure of Consumer Reports.--
Notwithstanding section 604 or any other provision of this title, if 
requested in writing by the Director of the Federal Bureau of 
Investigation, or a designee of the Director, a court may issue an 
order ex parte directing a consumer reporting agency to furnish a 
consumer report to the Federal Bureau of Investigation, upon a showing 
in camera that--
            ``(1) the consumer report is necessary for the conduct of 
        an authorized foreign counterintelligence investigation; and
            ``(2) there are specific and articulable facts giving 
        reason to believe that the consumer whose consumer report is 
        sought--
                    ``(A) is an agent of a foreign power; and
                    ``(B) is engaging or has engaged in international 
                terrorism (as that term is defined in section 101(c) of 
                the Foreign Intelligence Surveillance Act of 1978) or 
                clandestine intelligence activities that involve or may 
                involve a violation of criminal statutes of the United 
                States.
The terms of an order issued under this subsection shall not disclose 
that the order is issued for purposes of a counterintelligence 
investigation.
    ``(d) Confidentiality.--No consumer reporting agency or officer, 
employee, or agent of a consumer reporting agency shall disclose to any 
person, other than those officers, employees, or agents of a consumer 
reporting agency necessary to fulfill the requirement to disclose 
information to the Federal Bureau of Investigation under this section, 
that the Federal Bureau of Investigation has sought or obtained the 
identity of financial institutions or a consumer report respecting any 
consumer under subsection (a), (b), or (c) and no consumer reporting 
agency or officer, employee, or agent of a consumer reporting agency 
shall include in any consumer report any information that would 
indicate that the Federal Bureau of Investigation has sought or 
obtained such information or a consumer report.
    ``(e) Payment of Fees.--The Federal Bureau of Investigation shall, 
subject to the availability of appropriations, pay to the consumer 
reporting agency assembling or providing reports or information in 
accordance with procedures established under this section, a fee for 
reimbursement for such costs as are reasonably necessary and that have 
been directly incurred in searching, reproducing, or transporting 
books, papers, records, or other data required or requested to be 
produced under this section.
    ``(f) Limit on Dissemination.--The Federal Bureau of Investigation 
may not disseminate information obtained pursuant to this section 
outside of the Federal Bureau of Investigation, except to the 
Department of Justice as may be necessary for the approval or conduct 
of a foreign counterintelligence investigation, or, if the information 
concerns a person subject to the Uniform Code of Military Justice, to 
appropriate investigative authorities within the military department 
concerned as may be necessary for the conduct of a joint foreign 
counterintelligence investigation.
    ``(g) Rules of Construction.--Nothing in this section shall be 
construed to prohibit information from being furnished by the Federal 
Bureau of Investigation pursuant to a subpoena or court order, or in 
connection with a judicial or administrative proceeding to enforce this 
Act. Nothing in this section shall be construed to authorize or permit 
the withholding of information from the Congress.
    ``(h) Reports to Congress.--On a semiannual basis, the Attorney 
General of the United States shall fully inform--
            ``(1) the Permanent Select Committee on Intelligence and 
        the Committee on Banking and Financial Services of the House of 
        Representatives; and
            ``(2) the Select Committee on Intelligence and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate;
concerning all requests made pursuant to subsections (a), (b), and (c).
    ``(i) Damages.--Any agency or department of the United States 
obtaining or disclosing any consumer reports, records, or information 
contained therein in violation of this section is liable to the 
consumer to whom such consumer reports, records, or information relate 
in an amount equal to the sum of--
            ``(1) $100, without regard to the volume of consumer 
        reports, records, or information involved;
            ``(2) any actual damages sustained by the consumer as a 
        result of the disclosure;
            ``(3) if the violation is found to have been willful or 
        intentional, such punitive damages as a court may allow; and
            ``(4) in the case of any successful action to enforce 
        liability under this subsection, the costs of the action, 
        together with reasonable attorney fees, as determined by the 
        court.
    ``(j) Disciplinary Actions for Violations.--If a court determines 
that any agency or department of the United States has violated any 
provision of this section and the court finds that the circumstances 
surrounding the violation raise questions of whether or not an officer 
or employee of the agency or department acted willfully or 
intentionally with respect to the violation, the agency or department 
shall promptly initiate a proceeding to determine whether or not 
disciplinary action is warranted against the officer or employee that 
was responsible for the violation.
    ``(k) Good-Faith Exception.--Notwithstanding any other provision of 
this title, any consumer reporting agency or agent or employee thereof 
making disclosure of consumer reports or identifying information 
pursuant to this subsection in good-faith reliance upon a certification 
of the Federal Bureau of Investigation pursuant to provisions of this 
section shall not be liable to any person for such disclosure under 
this title, the constitution of any State, or any law or regulation of 
any State or any political subdivision of any State.
    ``(l) Limitation of Remedies.--Notwithstanding any other provision 
of this title, the remedies and sanctions set forth in this section 
shall be the only judicial remedies and sanctions for violation of this 
section.
    ``(m) Injunctive Relief.--In addition to any other remedy contained 
in this section, injunctive relief shall be available to require 
compliance with the procedures of this section. In the event of any 
successful action under this subsection, costs together with reasonable 
attorney fees, as determined by the court, may be recovered.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of the Fair Credit Reporting Act (15 U.S.C. 1681a et seq.) is amended 
by adding after the item relating to section 624 the following:

``625. Disclosures to FBI for counterintelligence purposes.''.
    (c) Sunset.--The amendments made by this section shall become 
effective on the date of enactment of this Act, and shall remain in 
effect during the period beginning on that date of enactment and ending 
5 years after that date of enactment.

SEC. 424. EFFECTIVE DATE.

    (a) In General.--Except as otherwise specifically provided in this 
title, the amendments made by this title shall become effective 365 
days after the date of enactment of this Act.
    (b) Early Compliance.--Any person or other entity that is subject 
to the requirements of this title may, at its option, comply with any 
provision of this title prior to the date on which that provision 
becomes effective under this title, in which case, each of the 
corresponding provisions of this title shall be fully applicable to 
such person or entity.

SEC. 425. RELATIONSHIP TO OTHER LAW.

    Nothing in this title or the amendments made by this title shall be 
considered to supersede or otherwise affect section 2721 of title 18, 
United States Code, with respect to motor vehicle records for surveys, 
marketing, or solicitations.

 TITLE V--ASSET CONSERVATION, LENDER LIABILITY, AND DEPOSIT INSURANCE 
                               PROTECTION

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Asset Conservation, Lender 
Liability, and Deposit Insurance Protection Act of 1995''.

SEC. 502. FEDERAL DEPOSIT INSURANCE ACT AMENDMENT.

    The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended by adding at the end the following new section:

``SEC. 45. FEDERAL BANKING AND LENDING AGENCY LIABILITY.

    ``(a) Governmental Entities.--
            ``(1) Banking and lending agencies.--Except as provided in 
        paragraph (3), a Federal banking or lending agency shall not be 
        liable under any law imposing strict liability for the release 
        or threatened release of a hazardous substance at or from 
        property (including a right or interest in property) acquired--
                    ``(A) in connection with the exercise of 
                receivership or conservatorship authority, or the 
                liquidation or winding up of the affairs of an insured 
                depository institution, including a subsidiary of an 
                insured depository institution;
                    ``(B) in connection with the provision of a loan, a 
                discount, an advance, a guarantee, insurance, or other 
                financial assistance; or
                    ``(C) in connection with property received in a 
                civil or criminal proceeding, or administrative 
                enforcement action, whether by settlement or order.
            ``(2) Application of state law.--Nothing in this section 
        shall be construed as preempting, affecting, applying to, or 
        modifying a State law, or a right, action, cause of action, or 
        obligation under State law, except that the liability of a 
        Federal banking or lending agency under a State law shall not 
        exceed the value of the interest of the agency in the asset 
        giving rise to the liability. Nothing in this section shall 
        prevent a Federal banking or lending agency from agreeing with 
        a State to transfer property to the State in lieu of any 
        liability that might otherwise be imposed under State law.
            ``(3) Limitation.--Notwithstanding paragraph (1), and 
        subject to section 107(d) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 and section 
        9003 of the Solid Waste Disposal Act, a Federal banking or 
        lending agency that caused or contributed to the release of a 
        hazardous substance may be liable for removal, remedial, 
        corrective, or other response action pertaining to that 
        release.
            ``(4) Subsequent purchaser.--The immunity provided by 
        paragraph (1) shall extend to the first subsequent purchaser of 
        the property from a Federal banking or lending agency, unless 
        the purchaser--
                    ``(A) would otherwise be liable or potentially 
                liable for all or part of the costs of the removal, 
                remedial, corrective, or other response action due to a 
                prior relationship with the property;
                    ``(B) is or was affiliated with or related to a 
                party described in subparagraph (A);
                    ``(C) fails to agree to take reasonable steps 
                necessary to remedy the release or threatened release 
                or to protect public health and safety in a manner 
                consistent with the purposes of applicable 
                environmental laws; or
                    ``(D) causes or contributes to any additional 
                release or threatened release on the property.
            ``(5) Federal or state action.--If a Federal agency or 
        State environmental agency is required to take remedial or 
corrective action due to the failure of a subsequent purchaser to carry 
out, in good faith, the agreement described in paragraph (4)(C), the 
subsequent purchaser shall reimburse the Federal or State environmental 
agency for the costs of the remedial or corrective action. Any such 
reimbursement shall not exceed the increase in the fair market value of 
the property attributable to the remedial or corrective action.
    ``(b) Lien Exemption.--Notwithstanding any other provision of law, 
any property held by a subsequent purchaser referred to in subsection 
(a)(4) or held by a Federal banking or lending agency shall not be 
subject to a lien for costs or damages associated with the release or 
threatened release of a hazardous substance existing at the time of the 
transfer.
    ``(c) Exemption From Covenants To Remediate.--A Federal banking or 
lending agency shall be exempt from any law requiring the agency to 
grant a covenant warranting that a removal, remedial, corrective, or 
other response action has been, or will in the future be, taken with 
respect to property acquired in the manner referred to in subsection 
(a)(1).
    ``(d) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Federal banking or lending agency.--The term `Federal 
        banking or lending agency' means the Corporation, the 
        Resolution Trust Corporation, the Board of Governors of the 
        Federal Reserve System, the Comptroller of the Currency, the 
        Office of Thrift Supervision, a Federal Reserve Bank, a Federal 
        Home Loan Bank, the Department of Housing and Urban 
        Development, the National Credit Union Administration Board, 
        the Farm Credit Administration, the Farm Credit System 
        Insurance Corporation, the Farm Credit System Assistance Board, 
        the Farmers Home Administration, the Rural Electrification 
        Administration, the Small Business Administration, and any 
        other Federal agency acting in a similar capacity, in any of 
        their capacities, and their agents or appointees.
            ``(2) Hazardous substance.--The term `hazardous substance' 
        means--
                    ``(A) any substance defined in section 101(14) of 
                the Comprehensive Environmental Response, Compensation, 
                and Liability Act of 1980; and
                    ``(B) petroleum.
            ``(3) Release.--The term `release' has the same meaning as 
        in--
                    ``(A) section 101(22) of the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980, including the use, storage, disposal, 
                treatment, generation, or transportation of a hazardous 
                substance; and
                    ``(B) section 9001(5) of the Solid Waste Disposal 
                Act.
    ``(e) Savings Clause.--Nothing in this section shall--
            ``(1) affect the rights or immunities or other defenses 
        that are available under this Act, the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 
        1980, subtitle I of the Solid Waste Disposal Act, or other 
        applicable law to any party;
            ``(2) create any liability for any party; or
            ``(3) create a private right of action against an insured 
        depository institution or lender, a Federal banking or lending 
        agency, or any other party.''.

SEC. 503. CERCLA AMENDMENTS.

    (a) Lender and Fiduciary Liability Limitations.--Title I of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.) is amended by adding at the end the 
following new section:

``SEC. 127. INSURED DEPOSITORY INSTITUTION AND OTHER LENDER LIABILITY.

    ``(a) Liability Limitations.--The liability of an insured 
depository institution or other lender that is liable under any other 
provision of this Act or subtitle I of the Solid Waste Disposal Act (42 
U.S.C. 6991 et seq.) for the release or threatened release of a 
hazardous substance at, from, or in connection with property--
            ``(1) acquired through foreclosure;
            ``(2) subject to a security interest held by the 
        institution or lender;
            ``(3) held by a lessor pursuant to the terms of an 
        extension of credit; or
            ``(4) subject to financial control or financial oversight 
        pursuant to the terms of an extension of credit;
shall be limited to the actual benefit conferred on the institution or 
lender by a removal, remedial, corrective, or other response action 
undertaken by another party.
    ``(b) Actual Benefit.--For purposes of this section, the actual 
benefit conferred on an institution or lender by a removal, remedial, 
corrective, or other response action shall be equal to the net gain, if 
any, realized by the institution or lender due to the action. For 
purposes of this subsection, the net gain shall not exceed the amount 
realized by the institution or lender on the sale of property less 
acquisition, holding, and disposition costs.
    ``(c) Exclusion.--Notwithstanding subsection (a), but subject to 
section 107(d) and section 9003 of the Solid Waste Disposal Act (42 
U.S.C. 6991b), a depository institution or lender that caused or 
contributed to the release of a hazardous substance may be liable for 
removal, remedial, corrective, or other response action pertaining to 
that release.
    ``(d) Environmental Assessments.--
            ``(1) Depository institutions.--The Administrator, after 
        consultation with the Federal Deposit Insurance Corporation, 
        shall issue and publish guidelines for insured depository 
        institutions and other lenders to develop and carry out 
        adequate procedures to evaluate actual and potential 
        environmental risks that may arise from or at property prior to 
        making an extension of credit secured by the property. The 
        requirements may provide for exclusions or different types of 
        environmental assessments as may be appropriate under the 
        circumstances to account for the levels of risk that may be 
        posed by different classes of collateral. Each Federal agency 
        having the authority under Federal law to make an examination 
        of an insured depository institution shall take compliance with 
        the guidelines into account in performing the examinations.
            ``(2) Final guidelines.--Final guidelines required to be 
        issued pursuant to paragraph (1) shall be issued not later than 
        180 days after the date of enactment of this section.
    ``(e) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Appropriate federal banking agency.--The term 
        `appropriate Federal banking agency'--
                    ``(A) has the same meaning as in section 3 of the 
                Federal Deposit Insurance Act (12 U.S.C. 1813); and
                    ``(B) includes the National Credit Union 
                Administration Board.
            ``(2) Extension of credit.--The term `extension of credit' 
        includes a lease finance transaction--
                    ``(A) in which the lessor does not initially select 
                the leased property and does not during the lease term 
                control the daily operations or maintenance of the 
                property; or
                    ``(B) that conforms with regulations issued by the 
                appropriate Federal banking agency or the appropriate 
                State banking regulatory agency.
            ``(3) Hazardous substance.--The term `hazardous substance' 
        has the same meaning as in section 45(d)(2) of the Federal 
        Deposit Insurance Act.
            ``(4) Insured depository institution.--The term `insured 
        depository institution' has the same meaning as in section 3 of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813), and shall 
        also include--
                    ``(A) an insured credit union, as defined in 
                section 101 of the Federal Credit Union Act (12 U.S.C. 
                1752);
                    ``(B) a bank or association chartered under the 
                Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); and
                    ``(C) a leasing or trust company that is an 
                affiliate of an insured depository institution (as the 
                term is defined in this paragraph).
            ``(5) Lender.--The term `lender' means--
                    ``(A) a person (other than an insured depository 
                institution) that--
                            ``(i) makes a bona fide extension of credit 
                        to or takes a security interest from a 
                        nonaffiliated party; and
                            ``(ii) substantially and materially 
                        complies with the environmental assessment 
                        requirements imposed under subsection (d), 
                        after final guidelines under the subsection 
                        have been issued;
                and includes a successor or assignee of any such 
                person;
                    ``(B) the Federal National Mortgage Association, 
                the Federal Home Loan Mortgage Corporation, the Federal 
                Agricultural Mortgage Corporation, or other entity that 
                in a bona fide manner is engaged in the business of 
                buying or selling loans or interests in loans, if the 
                Association, Corporation, or entity requires 
                institutions from which it purchases loans (or other 
                obligations) to comply substantially and materially 
                with the requirements of subsection (d), after final 
                guidelines under that subsection have been issued;
                    ``(C) a person engaged in the business of insuring 
                or guaranteeing against a default in the repayment of 
                an extension of credit, or acting as a surety with 
                respect to an extension of credit, to nonaffiliated 
                parties; and
                    ``(D) a person regularly engaged in the business of 
                providing title insurance who acquires the property as 
                a result of assignment or conveyance in the course of 
                underwriting claims and claims settlement.
            ``(6) Property acquired through foreclosure.--
                    ``(A) In general.--The term `property acquired 
                through foreclosure' means property acquired, or the 
                act of acquiring property, from a nonaffiliated party 
                by an insured depository institution or other lender--
                            ``(i) through purchase at sales under 
                        judgment or decree, power of sales, nonjudicial 
                        foreclosure sales, or from a trustee, deed in 
                        lieu of foreclosure, or similar conveyance, or 
                        through repossession, if the property was 
                        security for an extension of credit previously 
                        contracted;
                            ``(ii) through conveyance pursuant to an 
                        extension of credit previously contracted, 
                        including the termination of a lease agreement; 
                        or
                            ``(iii) through any other formal or 
                        informal manner by which the insured depository 
                        institution or other lender temporarily 
                        acquires, for subsequent disposition, 
                        possession of collateral in order to protect 
                        the interest of the institution or lender.
                    ``(B) Exclusion.--Property is not acquired through 
                foreclosure if the insured depository institution or 
                lender does not seek to sell or otherwise divest the 
                property at the earliest practical, commercially 
                reasonable time, on commercially reasonable terms, 
                taking into account market conditions and legal and 
                regulatory requirements.
            ``(7) Release.--The term `release' has the same meaning as 
        in section 45(d)(3) of the Federal Deposit Insurance Act.
            ``(8) Security interest.--The term `security interest' 
        includes rights under a mortgage, deed of trust, assignment, 
        judgment lien, pledge, security agreement, factoring agreement, 
        lease, or any other right accruing to a person to secure the 
        repayment of money, the performance of a duty, or some other 
        obligation.
    ``(f) Savings Clause.--Nothing in this section shall--
            ``(1) affect the rights or immunities or other defenses 
        that are available under this Act, subtitle I of the Solid 
        Waste Disposal Act (42 U.S.C. 6991 et seq.), or other 
        applicable law to a party subject to this section;
            ``(2) create any liability for a party; or
            ``(3) create a private right of action against an insured 
        depository institution or lender, a Federal agency that 
        regulates an insured depository institution or other lender, or 
        any other party.

``SEC. 128. LIABILITY OF FIDUCIARIES.

    ``(a) In General.--The liability of a fiduciary that is liable 
under any other provision of this Act or subtitle I of the Solid Waste 
Disposal Act (42 U.S.C. 6991 et seq.) for the release or threatened 
release of a hazardous substance at, from, or in connection with 
property held in a fiduciary capacity, may not exceed the assets held 
in the fiduciary capacity that are available to indemnify the 
fiduciary.
    ``(b) Exclusion.--Subsection (a) does not apply to the extent that 
a person is liable under this Act independently of the person's 
ownership or actions taken in a fiduciary capacity.
    ``(c) Limitation.--Notwithstanding subsections (a) and (d), a 
fiduciary whose failure to exercise due care caused or contributed to 
the release of a hazardous substance may have liability in its personal 
capacity for a response or corrective action pertaining to the release.
    ``(d) Safe Harbor.--A fiduciary shall not be liable in its personal 
capacity under this Act for--
            ``(1) undertaking or directing another person to undertake 
        a response action under section 107(d)(1) or under the 
        direction of an on-scene coordinator;
            ``(2) undertaking or directing another to undertake a 
        corrective action under section 9003(h) of the Solid Waste 
        Disposal Act (42 U.S.C. 6991b(h));
            ``(3) undertaking or directing another to undertake any 
        other lawful means of addressing hazardous substances in 
        connection with the property;
            ``(4) terminating the fiduciary relationship;
            ``(5) including in the terms of the fiduciary agreement a 
        covenant, warranty, or other term or condition that relates to 
        compliance with an environmental law, or monitoring or 
        enforcing the term;
            ``(6) monitoring or undertaking 1 or more inspections of 
        the property;
            ``(7) providing financial or other advice or counseling to 
        other parties to the fiduciary relationship, including the 
        settler or beneficiary;
            ``(8) restructuring, renegotiating, or otherwise altering 
        the terms and conditions of the fiduciary relationship; or
            ``(9) declining to take any of the actions referred to in 
        paragraphs (3) through (8).
    ``(e) Definitions.--As used in this section:
            ``(1) Fiduciary.--The term `fiduciary'--
                    ``(A) means a person acting for the benefit of 
                another party as a bona fide--
                            ``(i) trustee;
                            ``(ii) executor;
                            ``(iii) administrator;
                            ``(iv) custodian;
                            ``(v) guardian of estates or guardian ad 
                        litem;
                            ``(vi) receiver;
                            ``(vii) conservator;
                            ``(viii) committee of estates of lunatics 
                        or other disabled persons;
                            ``(ix) personal representative; or
                            ``(x) representative in any other capacity 
                        that the Administrator, pursuant to public 
                        notice, determines to be similar to the persons 
                        listed in clauses (i) through (ix); and
                    ``(B) does not include any person who is acting as 
                a fiduciary with respect to a trust or other fiduciary 
                estate that--
                            ``(i) was not created as part of, or to 
                        facilitate, 1 or more estate plans or pursuant 
                        to the incapacity of a natural person; and
                            ``(ii) was organized for the primary 
                        purpose of, or is engaged in, actively carrying 
                        on a trade or business for profit.
            ``(2) Fiduciary capacity.--The term `fiduciary capacity' 
        means the capacity of a person in holding title to the 
        property, or otherwise having control of or an interest in the 
        property, pursuant to the exercise of the responsibilities of 
        the person as a fiduciary.
            ``(3) Federal banking or lending agency.--The term `Federal 
        banking or lending agency' has the same meaning as in section 
        45(d)(1) of the Federal Deposit Insurance Act.
            ``(4) Hazardous substance.--The term `hazardous substance' 
        has the same meaning as in section 45(d)(2) of the Federal 
        Deposit Insurance Act.
            ``(5) Release.--The term `release' has the same meaning as 
        in section 45(d)(3) of the Federal Deposit Insurance Act.
    ``(f) Savings Clause.--Nothing in this section shall affect the 
rights or immunities or other defenses that are available under this 
Act, subtitle I of the Solid Waste Disposal Act (42 U.S.C. 6991 et 
seq.), or other law that is applicable to a person subject to this 
section. Nothing in this section creates any liability for a party or a 
private right of action against a fiduciary or any other party.
    ``(g) Inapplicability to Federal Banking and Lending Agencies.--
Nothing in this section applies to a Federal banking or lending agency.
    ``(h) No Effect on Certain Persons.--Nothing in this section 
affects the liability, if any, of a person who--
            ``(1)(A) acts in a capacity other than a fiduciary 
        capacity; and
            ``(B) directly or indirectly benefits from a trust or 
        fiduciary relationship; or
            ``(2) who--
                    ``(A) is a beneficiary and a fiduciary with respect 
                to the same fiduciary estate; and
                    ``(B) as a fiduciary, receives benefits that exceed 
                customary or reasonable compensation, and incidental 
                benefits, permitted under other applicable law.
    ``(i) Regulations.--The Administrator, after consultation with the 
Federal Deposit Insurance Corporation, may promulgate regulations to 
carry out this section.''.
    (b) Definition of Owner or Operator.--Section 101(20) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601(20)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (iii) of the first sentence, by 
                inserting ``the United States or'' after ``abandonment, 
                or similar means to''; and
                    (B) by striking the second sentence;
            (2) in subparagraph (D)--
                    (A) in the first sentence, by inserting ``the 
                United States or'' after ``does not include''; and
                    (B) in the second sentence--
                            (i) by inserting ``any department, agency, 
                        or instrumentality of the United States or'' 
                        after ``shall not apply to''; and
                            (ii) by striking ``, and such a'' and 
                        inserting ``, and the department, agency, or 
                        instrumentality of the United States or''; and
            (3) by adding at the end the following:
                    ``(E) Exclusion of united states, conservator, or 
                receiver.--The term `owner or operator' shall not 
                include the United States or any department, agency, or 
                instrumentality of the United States, or a conservator 
                or receiver appointed by a department, agency, or 
                instrumentality of the United States, if the United 
                States or the conservator or receiver meets both of the 
                following conditions:
                            ``(i) Authority.--The United States, 
                        conservator, or receiver acquired ownership or 
                        control of a vessel or facility (or any right 
                        or interest in a vessel or facility)--
                                    ``(I) in connection with the 
                                exercise of receivership or 
                                conservatorship authority or the 
                                liquidation or winding up of the 
                                affairs of an entity subject to a 
                                receivership or conservatorship, 
                                including a subsidiary of the entity;
                                    ``(II) in connection with the 
                                exercise of any seizure or forfeiture 
                                authority; or
                                    ``(III) pursuant to a law 
                                specifying the property to be acquired.
                            ``(ii) Nonparticipation in management.--The 
                        United States, conservator, or receiver does 
                        not participate in the management of the vessel 
                        or facility operations that result in a release 
                        or threat of release of hazardous substances 
                        and complies with such other requirements as 
                        the Administrator, after consultation with the 
                        Federal Deposit Insurance Corporation, may 
                        establish by regulation.
                    ``(F) Exclusion of persons not participants in 
                management.--
                            ``(i) Indicia of ownership to protect 
                        security interest.--The term `owner or 
                        operator' does not include a person who, 
                        without participating in the management of a 
                        vessel or facility, holds indicia of ownership 
                        primarily to protect the security interest of 
                        the person in the vessel or facility.
                            ``(ii) Nonparticipation in management prior 
                        to foreclosure.--The term `owner or operator' 
                        does not include a person who did not 
                        participate in management of a vessel or 
                        facility prior to foreclosure, even if the 
                        person forecloses on the vessel or facility, 
                        sells, re-leases (in the case of a lease 
                        finance transaction), or liquidates the vessel 
                        or facility, maintains business activities, 
                        winds up operations, undertakes a response 
                        action under section 107(d)(1) or under the 
                        direction of an on-scene coordinator, or 
                        undertakes a corrective action under section 
                        9003 of the Solid Waste Disposal Act (42 U.S.C. 
                        6991b), with respect to the vessel or facility, 
                        or takes other measures to preserve, protect, 
                        or prepare the vessel or facility prior to sale 
                        or disposition, if the person seeks to sell, 
                        re-lease (in the case of a lease finance 
                        transaction), or otherwise divest the vessel or 
                        facility at the earliest practical, 
                        commercially reasonable time, on commercially 
                        reasonable terms, taking into account market 
                        conditions and legal and regulatory 
                        requirements.
                    ``(G) Participation in management.--For purposes of 
                subparagraph (F)--
                            ``(i) the term `participate in management' 
                        means actually participating in the management 
                        or operational affairs of a vessel or facility, 
                        and does not include merely having the capacity 
                        to influence, or the unexercised right to 
                        control, vessel or facility operations;
                            ``(ii) a person shall be considered to 
                        participate in management while the borrower is 
                        still in possession of the vessel or facility 
                        encumbered by the security interest only if the 
                        person--
                                    ``(I) exercises decisionmaking 
                                control over the environmental 
                                compliance of a borrower, such that the 
                                person has undertaken responsibility 
                                for the hazardous substance handling or 
                                disposal practices of the borrower; or
                                    ``(II) exercises control at a level 
                                comparable to that of a manager of the 
                                enterprise of the borrower, such that 
                                the person has assumed or manifested 
                                responsibility for the overall 
                                management of the enterprise 
                                encompassing day-to-day decisionmaking 
                                with respect to environmental 
                                compliance, or with respect to 
                                substantially all of the operational 
                                aspects (as distinguished from 
                                financial or administrative aspects) of 
                                the enterprise, other than 
                                environmental compliance;
                            ``(iii) the term `participate in 
                        management' does not include conducting an act 
                        or failing to act prior to the time that a 
                        security interest is created in a vessel or 
                        facility; and
                            ``(iv) the term `participate in management' 
                        does not include--
                                    ``(I) holding such a security 
                                interest or abandoning or releasing 
                                such a security interest;
                                    ``(II) including in the terms of an 
                                extension of credit, or in a contract 
                                or security agreement relating to the 
                                extension, a covenant, warranty, or 
                                other term or condition that relates to 
                                environmental compliance;
                                    ``(III) monitoring or enforcing the 
                                terms and conditions of the extension 
                                of credit or security interest;
                                    ``(IV) monitoring or undertaking 1 
                                or more inspections of the vessel or 
                                facility;
                                    ``(V) requiring or conducting 
                                response action or other lawful means 
                                of addressing the release or threatened 
                                release of a hazardous substance in 
                                connection with the vessel or facility 
                                prior to, during, or on the expiration 
                                of the term of the extension of credit;
                                    ``(VI) providing financial or other 
                                advice or counseling in an effort to 
                                mitigate, prevent, or cure default or 
                                diminution in the value of the vessel 
                                or facility;
                                    ``(VII) restructuring, 
                                renegotiating, or otherwise agreeing to 
                                alter the terms and conditions of the 
                                extension of credit or security 
                                interest, exercising forbearance; or
                                    ``(VIII) exercising other remedies 
                                that may be available under applicable 
                                law for the breach of a term or 
                                condition of the extension of credit or 
                                security agreement;
                        if the actions do not rise to the level of 
                        participating in management, as defined in 
                        clauses (i) and (ii).
                    ``(H) Other terms.--As used in subparagraphs (E) 
                through (G), and this subparagraph:
                            ``(i) Extension of credit.--The term 
                        `extension of credit' includes a lease finance 
                        transaction--
                                    ``(I) in which the lessor does not 
                                initially select the leased vessel or 
                                facility and does not during the lease 
                                term control the daily operations or 
                                maintenance of the vessel or facility; 
                                or
                                    ``(II) that conforms with 
                                regulations issued by the appropriate 
                                Federal banking agency or the 
                                appropriate State bank supervisor (as 
                                those terms are defined in section 3 of 
                                the Federal Deposit Insurance Act (12 
                                U.S.C. 1813)) or with regulations 
                                issued by the National Credit Union 
                                Administration Board, as appropriate.
                            ``(ii) Financial or administrative 
                        aspect.--The term `financial or administrative 
                        aspect' includes a function such as a function 
                        of a credit manager, accounts payable officer, 
                        accounts receivable officer, personnel manager, 
                        comptroller, or chief financial officer, or a 
                        similar function.
                            ``(iii) Foreclosure; foreclose.--The terms 
                        `foreclosure' and `foreclose' mean, 
                        respectively, acquiring, and to acquire, a 
                        vessel or facility through--
                                    ``(I) purchase at sale under a 
                                judgment or decree, a power of sale, a 
                                nonjudicial foreclosure sale, or from a 
                                trustee, deed in lieu of foreclosure, 
                                or similar conveyance, or through 
                                repossession, if the vessel or facility 
                                was security for an extension of credit 
                                previously contracted;
                                    ``(II) conveyance pursuant to an 
                                extension of credit previously 
                                contracted, including the termination 
                                of a lease agreement; or
                                    ``(III) any other formal or 
                                informal manner by which the person 
                                acquires, for subsequent disposition, 
                                possession of collateral in order to 
                                protect the security interest of the 
                                person.
                            ``(iv) Hazardous substance.--The term 
                        `hazardous substance' has the same meaning as 
                        in section 45(d)(2) of the Federal Deposit 
                        Insurance Act.
                            ``(v) Operational aspect.--The term 
                        `operational aspect' includes a function such 
                        as a function of a facility or plant manager, 
                        operations manager, chief operating officer, or 
                        chief executive officer.
                            ``(vi) Release.--The term `release' has the 
                        same meaning as in section 45(d)(3) of the 
                        Federal Deposit Insurance Act.
                            ``(vii) Security interest.--The term 
                        `security interest' includes a right under a 
                        mortgage, deed of trust, assignment, judgment 
                        lien, pledge, security agreement, factoring 
                        agreement, or lease, or any other right 
                        accruing to a person to secure the repayment of 
                        money, the performance of a duty, or some other 
                        obligation.
                            ``(viii) Vessel or facility.--The term 
                        `vessel or facility' includes an underground 
                        storage tank as defined in section 9001(1) of 
                        the Solid Waste Disposal Act (42 U.S.C. 
                        6991(1)).''.

SEC. 504. SOLID WASTE DISPOSAL ACT AMENDMENTS.

    (a) Definition of Owner and Operator.--Section 9001 of the Solid 
Waste Disposal Act (42 U.S.C. 6991) is amended by adding at the end the 
following:
            ``(9) Owner and operator.--The terms `owner' and `operator' 
        do not include any person excluded from the definition of an 
        `owner or operator' under subparagraphs (E) through (H) of 
        section 101(20) of the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601(20)).''.
    (b) Lender and Fiduciary Liability.--Subtitle I of the Solid Waste 
Disposal Act (42 U.S.C. 6991 et seq.) is amended by adding at the end 
the following:

``SEC. 9011. LENDER AND FIDUCIARY LIABILITY.

    ``This subtitle shall be subject to the limitations on liability in 
sections 127 and 128 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980.''.

SEC. 505. EFFECTIVE DATE.

    The amendments made by this title shall be applicable with respect 
to any claim that has not been finally adjudicated as of the date of 
enactment of this Act.

              TITLE VI--STUDIES AND REPORTS; MISCELLANEOUS

SEC. 601. ELECTRONIC FUND TRANSFER ACT CLARIFICATION.

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

SEC. 602. TREATMENT OF CLAIMS ARISING FROM BREACH OF POST-APPOINTMENT 
              AGREEMENTS.

    Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)) is amended by adding at the end the following new paragraph:
            ``(3) Treatment of certain claims as administrative 
        expenses.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection or any other provision of 
                law, in an action against a Federal banking agency 
                arising from a claim that the agency breached an 
                agreement entered into after the date of appointment of 
                the agency as conservator or receiver of an insured 
                depository institution, any final judgment for monetary 
                damages entered against the agency shall be considered 
                to be an administrative expense of the conservator or 
                receiver.
                    ``(B) Application.--Subparagraph (A) shall apply 
                whether or not the subject Federal banking agency 
                considers the monetary judgment referred to in 
                subparagraph (A) to be an obligation that is necessary 
                or appropriate to the smooth and orderly disposition of 
                the assets of the insured depository institution under 
                conservatorship or receivership.''.

SEC. 603. FICTITIOUS FINANCIAL INSTRUMENTS.

    (a) Increased Penalties for Counterfeiting Violations.--Sections 
474 and 474A of title 18, United States Code, are each amended by 
striking ``class C felony'' each place that term appears, and inserting 
``class B felony''.
    (b) Criminal Penalty for Production, Sale, Transportation, or 
Possession of Fictitious Financial Instruments Purporting To Be Those 
of the States, of Political Subdivisions, and of Private 
Organizations.--
            (1) In general.--Chapter 27 of title 18, United States 
        Code, is amended by inserting after section 513 the following 
        new section:
``Sec. 514. Fictitious obligations
    ``(a) In General.--Whoever, with the intent to defraud--
            ``(1) draws, prints, processes, produces, publishes, or 
        otherwise makes, or attempts or causes the same, within the 
        United States;
            ``(2) passes, utters, presents, offers, brokers, issues, 
        sells, or attempts or causes the same, or with like intent 
        possesses, within the United States; or
            ``(3) utilizes interstate or foreign commerce, including 
        the use of the mails or wire, radio, or other electronic 
        communication, to transmit, transport, ship, move, transfer, or 
        attempts or causes the same, to, from, or through the United 
        States;
any false or fictitious instrument, document, or other item appearing, 
representing, purporting, or contriving through scheme or artifice, to 
be an actual security or other financial instrument issued under the 
authority of the United States, a foreign government, a State or other 
political subdivision of the United States, or an organization, shall 
be guilty of a class B felony.
    ``(b) Incorporated Definitions.--For purposes of this section, any 
term used in this section that is defined in section 513(c) shall have 
the same meaning as in section 513(c).
    ``(c) Investigative Authority.--The United States Secret Service, 
in addition to any other agency having such authority, shall have 
authority to investigate offenses under this section.''.
            (2) Technical amendment.--The analysis for chapter 27 of 
        title 18, United States Code, is amended by inserting after the 
        item relating to section 513 the following:

``514. Fictitious obligations.''.

SEC. 604. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

    (a) Repeals.--Sections 268 and 271 of the Truth in Savings Act (12 
U.S.C. 4307, 4310) are repealed.
    (b) On-Premises Displays.--Section 263(c) of the Truth in Savings 
Act (12 U.S.C. 4302(c)) is amended--
            (1) by striking paragraph (2);
            (2) by striking ``(1) In general.--''; and
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively, and indenting 
        appropriately.
    (c) Depository Institution Definition.--Section 274(6) of the Truth 
in Savings Act (12 U.S.C. 4313(6)) is amended by inserting before the 
period ``, but does not include any nonautomated credit union that was 
not required to comply with the requirements of this title as of the 
date of enactment of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1995, pursuant to the determination of the National 
Credit Union Administration Board''.
    (d) Time Deposits.--Section 266(a)(3) of the Truth in Savings Act 
(12 U.S.C. 4305(a)(3)) is amended by inserting ``has a maturity of more 
than 30 days'' after ``deposit which''.

SEC. 605. CONSUMER LEASING ACT AMENDMENTS.

    (a) Congressional Findings and Declaration of Purposes.--
            (1) Findings.--The Congress finds that--
                    (A) competition among the various financial 
                institutions and other firms engaged in the business of 
                consumer leasing is greatest when there is informed use 
                of leasing;
                    (B) the informed use of leasing results from an 
                awareness of the cost of leasing by consumers; and
                    (C) there has been a continued trend toward leasing 
                automobiles and other durable goods for consumer use as 
                an alternative to installment credit sales and that 
                leasing product advances have occurred such that 
                lessors have been unable to provide consistent 
                industry-wide disclosures to fully account for the 
                competitive progress that has occurred.
            (2) Purposes.--The purposes of this section are--
                    (A) to assure a simple, meaningful disclosure of 
                leasing terms so that the consumer will be able to 
                compare more readily the various leasing terms 
                available to the consumer and avoid the uninformed use 
                of leasing, and to protect the consumer against 
                inaccurate and unfair leasing practices;
                    (B) to provide for adequate cost disclosures that 
                reflect the marketplace without impairing competition 
                and the development of new leasing products; and
                    (C) to provide the Board with the regulatory 
                authority to assure a simplified, meaningful definition 
                and disclosure of the terms of certain leases of 
                personal property for personal, family, or household 
                purposes so as to--
                            (i) enable the lessee to compare more 
                        readily the various lease terms available to 
                        the lessee;
                            (ii) enable comparison of lease terms with 
                        credit terms, as appropriate; and
                            (iii) assure meaningful and accurate 
                        disclosures of lease terms in advertisements.
    (b) Regulations.--
            (1) In general.--Chapter 5 of the Truth in Lending Act (15 
        U.S.C. 1667 et seq.) is amended by adding at the end the 
        following new section:

``SEC. 187. REGULATIONS.

    ``(a) Regulations Authorized.--
            ``(1) In general.--The Board shall promulgate regulations 
        to update and clarify the requirements and definitions 
        applicable to lease disclosures and contracts, and any other 
        issues specifically related to consumer leasing, to the extent 
        that the Board determines such action to be necessary--
                    ``(A) to carry out this chapter;
                    ``(B) to prevent any circumvention of this chapter; 
                or
                    ``(C) to facilitate compliance with the 
                requirements of the chapter.
            ``(2) Classifications, adjustments.--Any regulations 
        promulgated under paragraph (1) may contain classifications and 
        differentiations, and may provide for adjustments and 
        exceptions for any class of transactions, as the Board 
        considers appropriate.
    ``(b) Model Disclosure.--
            ``(1) Publication.--The Board shall establish and publish 
        model disclosure forms to facilitate compliance with the 
        disclosure requirements of this chapter and to aid the consumer 
        in understanding the transaction to which the subject 
        disclosure form relates.
            ``(2) Use of automated equipment.--In establishing model 
        forms under this subsection, the Board shall consider the use 
        by lessors of data processing or similar automated equipment.
            ``(3) Use optional.--A lessor may utilize a model 
        disclosure form established by the Board under this subsection 
        for purposes of compliance with this chapter, at the discretion 
        of the lessor.
            ``(4) Effect of use.--Any lessor who uses the material 
        aspects of any model disclosure form established by the Board 
        under this subsection shall be deemed to be in compliance with 
        the disclosure requirements to which the form relates.''.
            (2) Effective date.--
                    (A) In general.--Any regulation of the Board, or 
                any amendment or interpretation of any regulation of 
                the Board issued pursuant to section 187 of the Truth 
                in Lending Act (as added by paragraph (1) of this 
                subsection), shall become effective on the first 
                October 1 that follows the date of promulgation of that 
                regulation, amendment, or interpretation by not less 
                than 6 months.
                    (B) Longer period.--The Board may, at the 
                discretion of the Board, extend the time period 
                referred to in subparagraph (A) in accordance with 
                subparagraph (C), to permit lessors to adjust their 
                disclosure forms to accommodate the requirements of 
                section 127 of the Truth in Lending Act (as added by 
                paragraph (1) of this subsection).
                    (C) Shorter period.--The Board may shorten the time 
                period referred to in subparagraph (A), if the Board 
                makes a specific finding that such action is necessary 
                to comply with the findings of a court or to prevent an 
                unfair or deceptive practice.
                    (D) Compliance before effective date.--Any lessor 
                may comply with any means of disclosure provided for in 
                section 127 of the Truth in Lending Act (as added by 
                paragraph (1) of this subsection) before the effective 
                date of such requirement.
                    (E) Definitions.--For purposes of this subsection, 
                the term ``lessor'' has the same meaning as in section 
                181 of the Truth in Lending Act.
            (3) Clerical amendment.--The table of sections for chapter 
        5 of title I of the Truth in Lending Act (15 U.S.C. 1601 et 
        seq.) is amended by inserting after the item relating to 
        section 186 the following new item:

``187. Regulations.''.
    (c) Consumer Lease Advertising.--Section 184 of the Truth in 
Lending Act (15 U.S.C. 1667c) is amended to read as follows:

``SEC. 184. CONSUMER LEASE ADVERTISING.

    ``(a) In General.--If an advertisement for a consumer lease 
includes a statement of the amount of any payment or a statement that 
any or no initial payment is required, the advertisement shall clearly 
and conspicuously state, as applicable--
            ``(1) the transaction advertised is a lease;
            ``(2) the total amount of any initial payments required on 
        or before consummation of the lease or delivery of the 
        property, whichever is later;
            ``(3) that a security deposit is required;
            ``(4) the number, amount, and timing of scheduled payments; 
        and
            ``(5) with respect to a lease in which the liability of the 
        consumer at the end of the lease term is based on the 
        anticipated residual value of the property, that an extra 
        charge may be imposed at the end of the lease term.
    ``(b) Advertising Medium Not Liable.--No owner or employee of any 
entity that serves as a medium in which an advertisement appears or 
through which an advertisement is disseminated, shall be liable under 
this section.''.

SEC. 606. STUDY OF CORPORATE CREDIT UNIONS.

    (a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Administration.--The term ``Administration'' means the 
        National Credit Union Administration.
            (2) Board.--The term ``Board'' means the National Credit 
        Union Administration Board.
            (3) Corporate credit union.--The term ``corporate credit 
        union'' has the meaning given such term by rule or regulation 
        of the Board.
            (4) Fund.--The term ``Fund'' means the National Credit 
        Union Share Insurance Fund established under section 203 of the 
        Federal Credit Union Act.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
    (b) Study.--
            (1) In general.--The Secretary, in consultation with the 
        Board, the Corporation, the Comptroller of the Currency, and 
        the Administration, shall conduct a study and evaluation of--
                    (A) the oversight and supervisory practices of the 
                Administration concerning the Fund, including the 
                treatment of amounts deposited in the Fund pursuant to 
                section 202(c) of the Federal Credit Union Act, 
                including analysis of--
                            (i) whether those amounts should be--
                                    (I) refundable; or
                                    (II) treated as expenses; and
                            (ii) the use of those amounts in 
                        determining equity capital ratios;
                    (B) the potential for, and potential effects of, 
                administration of the Fund by an entity other than the 
                Administration;
                    (C) the 10 largest corporate credit unions in the 
                United States, conducted in cooperation with 
                appropriate employees of other Federal agencies with 
                expertise in the examination of federally insured 
                financial institutions, including--
                            (i) the investment practices of those 
                        credit unions; and
                            (ii) the financial stability, financial 
                        operations, and financial controls of those 
                        credit unions;
                    (D) the regulations of the Administration; and
                    (E) the supervision of corporate credit unions by 
                the Administration.
    (c) Report.--Not later than 12 months after the date of enactment 
of this Act, the Secretary shall submit to the appropriate committees 
of the Congress, a report that includes the results of the study and 
evaluation conducted under subsection (b), together with any 
recommendations that the Secretary considers to be appropriate.

SEC. 607. REPORT ON THE RECONCILIATION OF DIFFERENCES BETWEEN 
              REGULATORY ACCOUNTING PRINCIPLES AND GENERALLY ACCEPTED 
              ACCOUNTING PRINCIPLES.

    Not later than 180 days after the date of enactment of this Act, 
each appropriate Federal banking agency shall submit to the Committee 
on Banking and Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the Senate, a 
report describing both the actions that have been taken by the agency 
and the actions that will be taken by the agency to eliminate or 
conform inconsistent or duplicative accounting and reporting 
requirements applicable to reports or statements filed with any such 
agency by insured depository institutions, as required by section 121 
of the Federal Deposit Insurance Corporation Improvement Act of 1991.

SEC. 608. STATE-BY-STATE AND METROPOLITAN AREA-BY-METROPOLITAN AREA 
              STUDY OF BANK FEES.

    Section 1002(b)(2)(A) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended 
to read as follows:
                    ``(A) a description of any discernible trend, in 
                the Nation as a whole, in each of the 50 States, and in 
                each consolidated metropolitan statistical area or 
                primary metropolitan statistical area (as defined by 
                the Director of the Office of Management and Budget), 
                in the cost and availability of retail banking services 
                (including fees imposed for providing such services), 
                that delineates differences between insured depository 
                institutions on the basis of both the size of the 
                institution and any engagement of the institution in 
                multistate activity; and''.

SEC. 609. PROSPECTIVE APPLICATION OF GOLD CLAUSES IN CONTRACTS.

    Section 5118(d)(2) of title 31, United States Code, is amended by 
adding at the end the following: ``This paragraph shall apply to any 
obligation issued on or before October 27, 1977, notwithstanding any 
assignment or novation of such obligation after October 27, 1977, 
unless all parties to the assignment or novation specifically agree to 
include a gold clause in the new agreement.''.
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