`[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 576 Placed on Calendar Senate (PCS)]





                                                        Calendar No. 35

106th CONGRESS

  1st Session

                                 S. 576

                          [Report No. 106-11]

_______________________________________________________________________

                                 A BILL

   To provide for improved monetary policy and regulatory reform in 
    financial institution management and activities, to streamline 
 financial regulatory agency actions, to provide for improved consumer 
               credit disclosure, and for other purposes.

_______________________________________________________________________

                             March 10, 1999

                 Read twice and placed on the calendar





                                                        Calendar No. 35
106th CONGRESS
  1st Session
                                 S. 576

                          [Report No. 106-11]

   To provide for improved monetary policy and regulatory reform in 
    financial institution management and activities, to streamline 
 financial regulatory agency actions, to provide for improved consumer 
               credit disclosure, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 1999

 Mr. Gramm, from the Committee on Banking, Housing, and Urban Affairs, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL


 
   To provide for improved monetary policy and regulatory reform in 
    financial institution management and activities, to streamline 
 financial regulatory agency actions, to provide for improved consumer 
               credit disclosure, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Financial 
Regulatory Relief and Economic Efficiency Act of 1999''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--IMPROVING MONETARY POLICY AND FINANCIAL INSTITUTION MANAGEMENT 
                               PRACTICES

Sec. 101. Payment of interest on reserves at Federal reserve banks.
Sec. 102. Amendments relating to interest on certain accounts at 
                            depository institutions.
Sec. 103. Repeal of savings association liquidity provision.
Sec. 104. Repeal of dividend notice requirement.
Sec. 105. Thrift service companies.
Sec. 106. Elimination of thrift multistate multiple holding company 
                            restrictions.
Sec. 107. Noncontrolling investments by savings association holding 
                            companies.
Sec. 108. Repeal of deposit broker notification and recordkeeping 
                            requirement.
Sec. 109. Uniform regulation of extensions of credit to executive 
                            officers.
Sec. 110. Expedited procedures for certain reorganizations.
Sec. 111. National bank directors.
Sec. 112. Amendment to Bank Consolidation and Merger Act.
Sec. 113. Loans on or purchases by institutions of their own stock; 
                            affiliations.
Sec. 114. Depository institution management interlocks.
Sec. 115. Purchased mortgage servicing rights.
Sec. 116. Cross marketing restriction; limited purpose bank relief.
Sec. 117. Divestiture requirement.
           TITLE II--STREAMLINING ACTIVITIES OF INSTITUTIONS

Sec. 201. Updating of authority for community development investments.
Sec. 202. Federal Reserve Act lending limits.
Sec. 203. Business purpose credit extensions.
Sec. 204. Affinity groups.
Sec. 205. Fair debt collection practices.
Sec. 206. Restriction on acquisitions of other insured depository 
                            institutions.
Sec. 207. Mutual holding companies.
Sec. 208. Call report simplification.
                 TITLE III--STREAMLINING AGENCY ACTIONS

Sec. 301. Elimination of duplicative disclosure of fair market value of 
                            assets and liabilities.
Sec. 302. Payment of interest in receiverships with surplus funds.
Sec. 303. Repeal of reporting requirement on differences in accounting 
                            standards.
Sec. 304. Agency review of competitive factors in Bank Merger Act 
                            filings.
Sec. 305. Elimination of SAIF and DIF special reserves.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Alternative compliance methods for advertising credit terms.
Sec. 402. Positions of Board of Governors of Federal Reserve System on 
                            the Executive Schedule.
Sec. 403. Federal Housing Finance Board.
Sec. 404. CRA Flexibility for credit card banks.
                     TITLE V--TECHNICAL CORRECTIONS

Sec. 501. Technical correction relating to deposit insurance funds.
Sec. 502. Rules for continuation of deposit insurance for member banks 
                            converting charters.
Sec. 503. Amendments to the Revised Statutes.
Sec. 504. Conforming change to the International Banking Act of 1978.

TITLE I--IMPROVING MONETARY POLICY AND FINANCIAL INSTITUTION MANAGEMENT 
                               PRACTICES

SEC. 101. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE BANKS.

    (a) In General.--Section 19(b) of the Federal Reserve Act (12 
U.S.C. 461(b)) is amended by adding at the end the following new 
paragraph:
            ``(12) Earnings on reserves.--
                    ``(A) In general.--Balances maintained at a Federal 
                reserve bank by or on behalf of a depository 
                institution may receive earnings, to be paid by the 
                Federal reserve bank at least once in each calendar 
                quarter, at a rate or rates not to exceed the general 
                level of short-term interest rates.
                    ``(B) Regulations relating to payments and 
                distribution.--The Board may prescribe regulations 
                concerning--
                            ``(i) the payment of earnings in accordance 
                        with this paragraph;
                            ``(ii) the distribution of such earnings to 
                        the depository institutions which maintain 
                        balances at such banks, or on behalf of which 
                        such balances are maintained; and
                            ``(iii) the responsibilities of depository 
                        institutions, Federal home loan banks, and the 
                        National Credit Union Administration Central 
                        Liquidity Facility with respect to the 
                        crediting and distribution of earnings 
                        attributable to balances maintained, in 
                        accordance with subsection (c)(1)(B), in a 
                        Federal reserve bank by any such entity on 
                        behalf of depository institutions which are not 
                        member banks.''.
    (b) Authorization for Pass Through Reserves for Member Banks.--
Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C. 461(c)(1)(B)) 
is amended by striking ``which is not a member bank''.
    (c) Technical and Conforming Amendments.--Section 19 of the Federal 
Reserve Act (12 U.S.C. 461) is amended--
            (1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by striking 
        subparagraph (C) and redesignating subparagraphs (D) and (E) as 
        subparagraphs (C) and (D), respectively; and
            (2) in subsection (c)(1)(A) (12 U.S.C. 461(c)(1)(A)), by 
        striking ``subsection (b)(4)(C)'' and inserting ``subsection 
        (b)''.

SEC. 102. AMENDMENTS RELATING TO INTEREST ON CERTAIN ACCOUNTS AT 
              DEPOSITORY INSTITUTIONS.

    (a) Interest-Bearing Transaction Accounts Authorized for All 
Businesses.--Section 2 of Public Law 93-100 (12 U.S.C. 1832) is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following:
    ``(b) Transfers.--Notwithstanding any other provision of law, any 
depository institution may, before January 1, 2001, permit the owner of 
any deposit or account on which interest or dividends are paid to make 
up to 24 transfers per month, for any purpose, to another account of 
the owner in the same institution. Nothing in this subsection shall be 
construed to prevent an account offered pursuant to this subsection 
from being considered a transaction account (as defined in section 
19(b) of the Federal Reserve Act (12 U.S.C. 461(b)) for purposes of 
that Act.''.
    (b) Amendments Relating to Savings and Demand Deposit Accounts at 
Depository Institutions.--
            (1) NOW accounts authorized for all businesses.--Section 2 
        of Public Law 93-100 (12 U.S.C. 1832) is amended to read as 
        follows:

``SEC. 2. WITHDRAWALS BY NEGOTIABLE OR TRANSFERABLE INSTRUMENTS FOR 
              TRANSFERS TO THIRD PARTIES.

    ``Notwithstanding any other provision of law, any depository 
institution (as defined in section 3 of the Federal Deposit Insurance 
Act) may permit the owner of any deposit or account to make withdrawals 
from such deposit or account by negotiable or transferable instruments 
for the purpose of making payments to third parties. With respect to an 
escrow account maintained in connection with a loan, a lender or 
servicer shall pay interest on such account only if such payments are 
required by contract between the lender or servicer and the borrower, 
or a specific statutory provision of the law of the State in which the 
security property is located requires the lender or servicer to make 
such payments.''.
            (2) Repeal of prohibition on payment of interest on demand 
        deposits.--
                    (A) Federal reserve act.--Section 19(i) of the 
                Federal Reserve Act (12 U.S.C. 371a) is amended to read 
                as follows:
    ``(i) [Reserved].''.
                    (B) Home owners' loan act.--Section 5(b)(1)(B) of 
                the Home Owners' Loan Act (12 U.S.C. 1464(b)(1)(B)) is 
                amended in the first sentence, by striking ``savings 
                association may not--'' and all that follows through 
                ``(ii) permit any'' and inserting ``savings association 
                may not permit any''.
                    (C) Federal deposit insurance act.--Section 18(g) 
                of the Federal Deposit Insurance Act (12 U.S.C. 
                1828(g)) is amended to read as follows:
    ``(g) [Reserved].''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on January 1, 2001.

SEC. 103. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY PROVISION.

    (a) Repeal of Liquidity Provision.--Section 6 of the Home Owners' 
Loan Act (12 U.S.C. 1465) is repealed.
    (b) Conforming Amendments.--
            (1) Section 5.--Section 5(c)(1)(M) of the Home Owners' Loan 
        Act (12 U.S.C. 1464(c)(1)(M)) is amended to read as follows:
                    ``(M) Liquidity investments.--Investments 
                identified by the Director, including cash, funds on 
                deposit at a Federal reserve bank or a Federal home 
                loan bank, or bankers' acceptances.''.
            (2) Section 10.--Section 10(m)(4)(B)(iii) of the Home 
        Owners' Loan Act (12 U.S.C. 1467a(m)(4)(B)(iii)) is amended by 
        striking ``liquid assets'' and all that follows through ``Loan 
        Act,'' and inserting ``cash and marketable securities 
        identified by the Director,''.

SEC. 104. REPEAL OF DIVIDEND NOTICE REQUIREMENT.

    Section 10(f) of the Home Owners' Loan Act (12 U.S.C. 1467a(f)) is 
amended to read as follows:
    ``(f) [Reserved].''.

SEC. 105. THRIFT SERVICE COMPANIES.

    Section 5(c)(4)(B) of the Home Owners' Loan Act (12 U.S.C. 
1464(c)(4)(B)) is amended--
            (1) in the subparagraph heading, by striking 
        ``corporations'' and inserting ``companies''; and
            (2) in the first sentence, by striking ``corporation 
        organized'' and all that follows through ``such State.'' and 
        inserting ``company, if such company engages or will engage 
        only in activities reasonably related to the activities of 
        financial institutions, as the Director may determine and 
        approve. For purposes of this subparagraph, the term `company' 
        includes any corporation and any limited liability company (as 
        defined in section 1(b)(7) of the Bank Service Company Act).''.

SEC. 106. ELIMINATION OF THRIFT MULTISTATE MULTIPLE HOLDING COMPANY 
              RESTRICTIONS.

    Section 10(e) of the Home Owners' Loan Act (12 U.S.C. 1467a(e)) is 
amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (3), (4), and (5), respectively.

SEC. 107. NONCONTROLLING INVESTMENTS BY SAVINGS ASSOCIATION HOLDING 
              COMPANIES.

    Section 10(e)(1)(A)(iii) of the Home Owners' Loan Act (12 U.S.C. 
1467a(e)(1)(A)(iii) is amended--
            (1) by inserting ``, except with the prior written approval 
        of the Director,'' after ``or to retain'';
            (2) by striking ``so acquire or retain'' and inserting 
        ``acquire or retain, and the Director may not authorize 
        acquisition or retention of,''; and
            (3) by striking ``(c)(2). This clause'' and inserting 
        ``(c)(2), except that this clause''.

SEC. 108. REPEAL OF DEPOSIT BROKER NOTIFICATION AND RECORDKEEPING 
              REQUIREMENT.

    Section 29A of the Federal Deposit Insurance Act (12 U.S.C. 1831f-
1) is repealed.

SEC. 109. UNIFORM REGULATION OF EXTENSIONS OF CREDIT TO EXECUTIVE 
              OFFICERS.

    Section 22(g)(4) of the Federal Reserve Act (12 U.S.C. 375a(4)) is 
amended by striking ``member bank's appropriate Federal banking 
agency'' and inserting ``Board''.

SEC. 110. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.

    The National Bank Consolidation and Merger Act (12 U.S.C. 215 et 
seq.) is amended--
            (1) by redesignating section 5 as section 7; and
            (2) by inserting after section 4 the following new section:

``SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.

    ``(a) In General.--A national banking association may, with the 
approval of the Comptroller, pursuant to rules and regulations 
promulgated by the Comptroller, and upon the affirmative vote of the 
shareholders of such association owning at least two-thirds of its 
capital stock outstanding, reorganize so as to become a subsidiary of a 
bank holding company or a company that will, upon consummation of such 
reorganization, become a bank holding company.
    ``(b) Reorganization Plan.--A reorganization authorized under 
subsection (a) shall be carried out in accordance with a reorganization 
plan that--
            ``(1) specifies the manner in which the reorganization 
        shall be carried out;
            ``(2) is approved by a majority of the entire board of 
        directors of the association;
            ``(3) specifies--
                    ``(A) the amount of cash or securities of the bank 
                holding company, or both, or other consideration, to be 
                paid to the shareholders of the reorganizing 
                association in exchange for their shares of stock of 
                the association;
                    ``(B) the date as of which the rights of each 
                shareholder to participate in such exchange will be 
                determined; and
                    ``(C) the manner in which the exchange will be 
                carried out; and
            ``(4) is submitted to the shareholders of the reorganizing 
        association at a meeting to be held on the call of the 
        directors in accordance with the procedures prescribed in 
        connection with a merger of a national bank under section 3.
    ``(c) Rights of Dissenting Shareholders.--If, pursuant to this 
section, a reorganization plan has been approved by the shareholders 
and the Comptroller, any shareholder of the association who has voted 
against the reorganization at the meeting referred to in subsection 
(b)(4), or has given notice in writing at or prior to that meeting to 
the presiding officer that the shareholder dissents from the 
reorganization plan, shall be entitled to receive the value of his or 
her shares, as provided by section 3 for the merger of a national bank.
    ``(d) Effect of Reorganization.--The corporate existence of an 
association that reorganizes in accordance with this section shall not 
be deemed to have been affected in any way by reason of such 
reorganization.
    ``(e) Approval Under the Bank Holding Company Act.--This section 
does not affect in any way the applicability of the Bank Holding 
Company Act of 1956 to a transaction described in subsection (a).''.

SEC. 111. NATIONAL BANK DIRECTORS.

    (a) Amendments to the Revised Statutes.--Section 5145 of the 
Revised Statutes of the United States (12 U.S.C. 71) is amended--
            (1) by striking ``for one year'' and inserting ``for a 
        period of not more than 3 years''; and
            (2) by adding at the end the following: ``In accordance 
        with regulations issued by the Comptroller of the Currency, an 
        association may adopt bylaws that provide for staggering the 
        terms of its directors.''.
    (b) Amendment to the Banking Act of 1933.--Section 31 of the 
Banking Act of 1933 (12 U.S.C. 71a) is amended in the first sentence, 
by inserting before the period ``, except that the Comptroller of the 
Currency may, by regulation or order, exempt a national banking 
association from the 25-member limit established by this section''.

SEC. 112. AMENDMENT TO BANK CONSOLIDATION AND MERGER ACT.

    The National Bank Consolidation and Merger Act (12 U.S.C. 215 et 
seq.) is amended by inserting after section 5, as added by section 110 
of this Act, the following new section:

``SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDIARIES AND NONBANK 
              AFFILIATES.

    ``(a) In General.--Upon the approval of the Comptroller, a national 
banking association may merge with 1 or more of its nonbank 
subsidiaries or affiliates.
    ``(b) Scope.--Nothing in this section shall be construed--
            ``(1) to affect the applicability of section 18(c) of the 
        Federal Deposit Insurance Act; or
            ``(2) to grant a national banking association any power or 
        authority that is not permissible for a national banking 
        association under other applicable provisions of law.
    ``(c) Regulations.--The Comptroller shall promulgate regulations to 
implement this section.''.

SEC. 113. LOANS ON OR PURCHASES BY INSTITUTIONS OF THEIR OWN STOCK; 
              AFFILIATIONS.

    (a) Amendment to Revised Statutes.--Section 5201 of the Revised 
Statutes of the United States (12 U.S.C. 83) is amended to read as 
follows:

``SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.

    ``(a) General Prohibition.--No national banking association shall 
make any loan or discount on the security of the shares of its own 
capital stock.
    ``(b) Exclusion.--For purposes of this section, an association 
shall not be deemed to be making a loan or discount on the security of 
the shares of its own capital stock if it acquires the stock to prevent 
loss upon a debt previously contracted for in good faith.''.
    (b) Amendment to Federal Deposit Insurance Act.--Section 18 of the 
Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at 
the end the following new subsection:
    ``(t) Loans by Insured Institutions on Their Own Stock.--
            ``(1) General prohibition.--No insured depository 
        institution shall make any loan or discount on the security of 
        the shares of its own capital stock.
            ``(2) Exclusion.--For purposes of this subsection, an 
        insured depository institution shall not be deemed to be making 
        a loan or discount on the security of the shares of its own 
        capital stock if it acquires the stock to prevent loss upon a 
        debt previously contracted for in good faith.''.
    (c) Removal of Prohibition on Certain Affiliations.--Section 18(s) 
of the Federal Deposit Insurance Act (12 U.S.C. 1828(s)) is amended by 
adding at the end the following new paragraph:
            ``(6) Certain investments.--Paragraph (1) does not apply 
        with respect to investments lawfully made prior to April 11, 
        1996, by a depository institution in any Government-sponsored 
        enterprise (as defined in section 1404(e)(1) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
        U.S.C. 1811 note)).''.

SEC. 114. DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS.

    Section 205(8) of the Depository Institution Management Interlocks 
Act (12 U.S.C. 3204(8)) is amended by striking ``director'' each place 
it appears and inserting ``management official''.

SEC. 115. PURCHASED MORTGAGE SERVICING RIGHTS.

    Section 475 of the Federal Depository Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
            (1) in subsection (a)(1), by inserting ``(or such other 
        percentage exceeding 90 percent but not exceeding 100 percent, 
        as may be determined under subsection (b))'' after ``90 
        percent''; and
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively, and by inserting after subsection 
        (a) the following new subsection:
    ``(b) Authority To Determine Percentage by Which To Discount Value 
of Servicing Rights.--The appropriate Federal banking agencies may 
allow readily marketable purchased mortgage servicing rights to be 
valued at more than 90 percent of their fair market value but at not 
more than 100 percent of such value, if such agencies jointly make a 
finding that such valuation would not have an adverse effect on the 
deposit insurance funds or the safety and soundness of insured 
depository institutions.''.

SEC. 116. CROSS MARKETING RESTRICTION; LIMITED PURPOSE BANK RELIEF.

    (a) Cross Marketing Restriction.--Section 4(f) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)) is amended by striking 
paragraph (3).
    (b) Daylight Overdrafts.--Section 4(f) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(f)) is amended by inserting after paragraph 
(2) the following new paragraph:
            ``(3) Permissible overdrafts described.--For purposes of 
        paragraph (2)(C), an overdraft is described in this paragraph 
        if--
                    ``(A) such overdraft results from an inadvertent 
                computer or accounting error that is beyond the control 
                of both the bank and the affiliate;
                    ``(B) such overdraft--
                            ``(i) is permitted or incurred on behalf of 
                        an affiliate that is monitored by, reports to, 
                        and is recognized as a primary dealer by the 
                        Federal Reserve Bank of New York; and
                            ``(ii) is fully secured, as required by the 
                        Board, by bonds, notes, or other obligations 
                        that are direct obligations of the United 
                        States or on which the principal and interest 
                        are fully guaranteed by the United States or by 
                        securities and obligations eligible for 
                        settlement on the Federal Reserve book entry 
                        system; or
                    ``(C) such overdraft--
                            ``(i) is permitted or incurred by, or on 
                        behalf of, an affiliate that is engaged in 
                        activities that are so closely related to 
                        banking, or managing or controlling banks, as 
                        to be a proper incident thereto; and
                            ``(ii) does not cause the bank to violate 
                        any provision of section 23A or 23B of the 
                        Federal Reserve Act, either directly, in the 
                        case of a bank that is a member of the Federal 
                        Reserve System, or by virtue of section 18(j) 
                        of the Federal Deposit Insurance Act, in the 
                        case of a bank that is not a member of the 
                        Federal Reserve System.''.
    (c) Activities Limitations.--Section 4(f)(2) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended--
            (1) by striking ``Paragraph (1) shall cease to apply to any 
        company described in such paragraph if--'' and inserting 
        ``Subject to paragraph (3), a company described in paragraph 
        (1) shall no longer qualify for the exemption provided under 
        that paragraph if--'';
            (2) in subparagraph (A)--
                    (A) in clause (ii)(IX), by striking ``and'' at the 
                end;
                    (B) in clause (ii)(X), by inserting ``and'' after 
                the semicolon;
                    (C) in clause (ii), by inserting after subclause 
                (X) the following:
                                    ``(XI) assets that are derived 
                                from, or incidental to, consumer 
                                lending activities in which 
                                institutions described in section 
                                2(c)(2)(F) or section 2(c)(2)(H) are 
                                permitted to engage;''; and
                    (D) by striking ``or'' at the end; and
            (3) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) any bank subsidiary of such company--
                            ``(i) accepts demand deposits or deposits 
                        that the depositor may withdraw by check or 
                        similar means for payment to third parties; and
                            ``(ii) engages in the business of making 
                        commercial loans (except that, for purposes of 
                        this clause, loans made in the ordinary course 
                        of a credit card operation shall not be treated 
                        as commercial loans); or
                    ``(C) after the date of enactment of the 
                Competitive Equality Amendments of 1987, any bank 
                subsidiary of such company permits any overdraft 
                (including any intraday overdraft), or incurs any such 
                overdraft in the account of the bank at a Federal 
                reserve bank, on behalf of an affiliate, other than an 
                overdraft described in paragraph (3).''.

SEC. 117. DIVESTITURE REQUIREMENT.

    Section 4(f)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(f)(4)) is amended to read as follows:
            ``(4) Divestiture in case of loss of exemption.--If any 
        company described in paragraph (1) fails to qualify for the 
        exemption provided under such paragraph by operation of 
        paragraph (2), such exemption shall cease to apply to such 
        company and such company shall divest control of each bank it 
        controls before the end of the 180-day period beginning on the 
        date that the company receives notice from the Board that the 
        company has failed to continue to qualify for such exemption, 
        unless before the end of such 180-day period, the company has--
                    ``(A) either--
                            ``(i) corrected the condition or ceased the 
                        activity that caused the company to fail to 
                        continue to qualify for the exemption; or
                            ``(ii) submitted a plan to the Board for 
                        approval to cease the activity or correct the 
                        condition in a timely manner (which shall not 
                        exceed 1 year); and
                    ``(B) implemented procedures that are reasonably 
                adapted to avoid the reoccurrence of such condition or 
                activity.''.

           TITLE II--STREAMLINING ACTIVITIES OF INSTITUTIONS

SEC. 201. UPDATING OF AUTHORITY FOR COMMUNITY DEVELOPMENT INVESTMENTS.

    Section 5(c)(3)(A) of the Home Owners' Loan Act (12 U.S.C. 
1464(c)(3)(A)) is amended by striking ``located'' and all that follows 
through ``1974'' and inserting ``for the primary purpose of promoting 
the public welfare, including the welfare of low- and moderate-income 
communities or families (including the provision of housing, services, 
or jobs)''.

SEC. 202. FEDERAL RESERVE ACT LENDING LIMITS.

    Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended--
            (1) by striking subsection (m); and
            (2) by redesignating subsection (o) as subsection (m).

SEC. 203. BUSINESS PURPOSE CREDIT EXTENSIONS.

    Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) 
is amended by adding at the end the following new subsection:
    ``(k) Business Purpose Credit Extensions.--
            ``(1) In general.--An institution referred to in section 
        2(c)(2)(F) or 4(f)(3) may engage in the provision of credit 
        card accounts for business purposes, including the issuance of 
        such accounts to small businesses.
            ``(2) Definition.--For purposes of this subsection, the 
        term `credit card' has the same meaning as in section 103 of 
        the Truth In Lending Act (15 U.S.C. 1602).''.

SEC. 204. AFFINITY GROUPS.

    (a) Section 3 of RESPA.--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 ``; and''; and
            (3) by adding at the end the following:
            ``(9) the term `affinity group' means any person, other 
        than an individual, that--
                    ``(A) is established for a common objective or 
                purpose;
                    ``(B) is not established directly or indirectly by 
                1 or more settlement service providers for the 
                principal purpose of endorsing the products or services 
                of a settlement service provider;
                    ``(C) the common objective or purpose of which is 
                not principally the conduct of settlement services; and
                    ``(D) does not consist of or is not established by 
                any member organization (or any affiliate, parent, or 
                subsidiary thereof), the principal business of which is 
                providing settlement services.''.
    (b) Section 8 of RESPA.--Section 8(c) of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2607(c)) is amended--
            (1) by striking ``prohibiting (1) the'' and inserting 
        ``prohibiting--
            ``(1) the'';
            (2) by striking ``loan, (2) the'' and inserting ``loan;
            ``(2) the'';
            (3) by striking ``performed, (3) payments'' and inserting 
        ``performed;
            ``(3) payments'';
            (4) by striking ``brokers, (4) affiliated'' and inserting 
        ``brokers;
            ``(4) affiliated''; and
            (5) by striking ``relationship, or (5) such'' and inserting 
        ``relationship;
            ``(5) the payment or other transfer of any thing of value 
        to an affinity group for or in connection with a written 
        endorsement, either through an advertisement or through a 
        communication addressed to a consumer by name or by mailing 
        address, of the products or services of a settlement service 
        provider other than as to a federally related mortgage loan, 
        the proceeds of which are used to acquire the property securing 
        the loan, if--
                    ``(A) the consumer will receive a direct financial 
                benefit from the endorsement; and
                    ``(B) the disclosure is clearly made at the time of 
                the first written communication with the consumer of 
                the fact that a payment has been made or may be made or 
                any other thing of value may accrue to the affinity 
                group for the endorsement; or
            ``(6) such''.

SEC. 205. FAIR DEBT COLLECTION PRACTICES.

    (a) Unfair Practices.--Section 808(1) of the Fair Debt Collection 
Practices Act (15 U.S.C. 1692f(1)) is amended by striking ``unless'' 
and all that follows through the period and inserting the following: 
``unless such amount--
                    ``(A) is expressly authorized by the agreement 
                creating the debt;
                    ``(B) is permitted by law; or
                    ``(C) is reasonable, does not exceed $25, results 
                from the collection of a check returned for 
                insufficient funds, and notice of the charge was 
                conspicuously posted at the place where the check was 
                written, in a State in which the law does not address 
                the collection of such amounts.''.
    (b) Collection Activity Following Initial Notice.--Section 809 of 
the Fair Debt Collection Practices Act (15 U.S.C. 1692g) is amended by 
adding at the end the following new subsection:
    ``(d) Continuation During Period.--Except as provided in subsection 
(b), collection activities and legal proceedings may continue during 
the 30-day period described in subsection (a) to the extent that the 
activities and communications do not overshadow or contradict the 
information provided in accordance with subsection (a).''.
    (c) Certain Student Loans.--Section 805(b) of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692c(b)) is amended by inserting 
``or a prejudgment administrative wage garnishment permitted under 
section 488A of the Higher Education Act of 1965 (20 U.S.C. 1095a),'' 
after ``remedy,''.

SEC. 206. RESTRICTION ON ACQUISITIONS OF OTHER INSURED DEPOSITORY 
              INSTITUTIONS.

    Section 4(f)(12) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(f)(12)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) in an acquisition in which the insured 
                institution has been found to be undercapitalized by 
                the appropriate Federal or State authority.''.

SEC. 207. MUTUAL HOLDING COMPANIES.

    Section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Reorganization.--A savings association operating in 
        mutual form may reorganize so as to become a holding company--
                    ``(A) by chartering a savings association, the 
                stock of which is to be wholly owned, except as 
                otherwise provided in this section, directly or 
                indirectly by the mutual association and by 
                transferring the substantial part of its assets and 
                liabilities, by merger or otherwise, including all of 
                its insured liabilities, to the interim savings 
                association;
                    ``(B) by converting to a stock association charter 
                and simultaneously forming a subsidiary stock holding 
                company that owns 100 percent of the voting stock of 
                the converting association; or
                    ``(C) in any other manner approved by the Director, 
                including by the formation of a subsidiary stock 
                holding company, transferring assets and liabilities by 
                merger or otherwise to the subsidiary stock holding 
                company, or through the use of one or more interim 
                institutions.'';
            (2) in paragraph (3)(D)--
                    (A) by striking ``a savings association'' and 
                inserting ``the mutual holding company or subsidiary 
                stock holding company'';
                    (B) by striking ``such capital'' and inserting 
                ``the capital of the association'';
                    (C) by striking ``association's''; and
                    (D) by inserting ``of the association'' before 
                ``established'';
            (3) in paragraph (5)--
                    (A) by inserting ``or subsidiary stock holding 
                company'' before ``may engage'';
                    (B) in subparagraph (A)--
                            (i) by inserting ``or acquiring'' after 
                        ``Investing in''; and
                            (ii) by inserting ``, savings bank, or 
                        bank'' before the period; and
                    (C) in subparagraph (C), by inserting ``or bank'' 
                before the period;
            (4) by striking paragraph (7) and inserting the following:
            ``(7) Chartering and regulation.--
                    ``(A) In general.--A mutual holding company shall 
                be chartered by the Director, and a subsidiary stock 
                holding company may be chartered under State law, and 
                such holding companies shall be subject to such 
                regulations as the Director may prescribe. Unless the 
                context otherwise requires, a mutual holding company 
                shall be subject to the other requirements of this 
                section regarding regulation of holding companies.
                    ``(B) Conversion to state charter.--A mutual 
                holding company organized pursuant to paragraph (1) may 
                convert its charter to a State mutual holding company 
                charter.
                    ``(C) Conversion to federal charter.--
                Notwithstanding any other provision of Federal law, a 
                mutual holding company organized under State law may 
                convert its State mutual holding company charter to a 
                Federal mutual holding company charter.'';
            (5) in paragraph (8)--
                    (A) in subparagraph (A), by inserting ``or 
                subsidiary stock holding company'' after ``company''; 
                and
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) Issuance of shares.--This section does not 
                prohibit a savings association or subsidiary stock 
                holding company chartered as part of a transaction 
                described in paragraph (1) from--
                            ``(i) issuing any nonvoting shares or less 
                        than 50 percent of the voting share of such 
                        association or subsidiary stock holding company 
                        to any person other than the mutual holding 
                        company;
                            ``(ii) issuing all of the voting shares of 
                        such association to a subsidiary stock holding 
                        company, if more than 50 percent of the voting 
                        shares of the subsidiary stock holding company 
                        are owned by the mutual holding company; or
                            ``(iii) issuing to any person other than 
                        the mutual holding company, in connection with 
                        the formation of the mutual holding company or 
                        at a later date, a separate class of voting 
                        shares, the rights and preferences of which are 
                        identical to those of the class of voting 
                        shares issued to the mutual holding company, 
                        except with respect to the payment of 
                        dividends.
                    ``(C) Mutual savings association.--In the case of a 
                mutual savings association in which holders of accounts 
                or obligors exercise voting rights, such holders of 
                accounts or obligors shall have the right to subscribe 
                on a priority basis for voting shares of the subsidiary 
                stock holding company or savings association chartered 
                pursuant to paragraph (1), pursuant to regulations of 
                the Director, but only with respect to the voting 
                shares issued in connection with the initial 
                reorganization pursuant to paragraph (1). The priority 
                subscription rights applicable to voting shares issued 
                to the mutual holding company in connection with the 
                initial reorganization pursuant to paragraph (1) shall 
                be exercisable at such time as the shares are 
                subsequently sold by the subsidiary savings association 
                or subsidiary stock holding company.'';
            (6) in paragraph (9)(A)(i)(I), by inserting ``, directly or 
        indirectly,'' after ``owned''; and
            (7) in paragraph (10)--
                    (A) by striking ``subsection--'' and inserting 
                ``subsection, the following definitions shall apply:''; 
                and
                    (B) by adding at the end the following:
                    ``(D) Subsidiary stock holding company.--The term 
                `subsidiary stock holding company' means a stock 
                holding company organized under applicable State law, 
                that is wholly-owned, except as otherwise provided in 
                this section, by the mutual holding company.''.

SEC. 208. CALL REPORT SIMPLIFICATION.

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

                 TITLE III--STREAMLINING AGENCY ACTIONS

SEC. 301. ELIMINATION OF DUPLICATIVE DISCLOSURE OF FAIR MARKET VALUE OF 
              ASSETS AND LIABILITIES.

    Section 37(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(a)(3)) is amended by striking subparagraph (D).

SEC. 302. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH SURPLUS FUNDS.

    Section 11(d)(10) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(d)(10)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Rulemaking authority of corporation.--The 
                Corporation may prescribe such rules, including 
                definitions of terms, as it deems appropriate to 
                establish the interest rate for or to make payments of 
                post insolvency interest to creditors holding proven 
                claims against the receivership estates of insured 
                Federal or State depository institutions following 
                satisfaction by the receiver of the principal amount of 
                all creditor claims.''.

SEC. 303. REPEAL OF REPORTING REQUIREMENT ON DIFFERENCES IN ACCOUNTING 
              STANDARDS.

    Section 37(c) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(c)) is amended--
            (1) in paragraph (1), by striking ``Each'' and all that 
        follows through ``a report'' and inserting ``The Federal 
        banking agencies shall jointly submit an annual report''; and
            (2) by inserting ``any'' before ``such agency'' each place 
        that term appears.

SEC. 304. AGENCY REVIEW OF COMPETITIVE FACTORS IN BANK MERGER ACT 
              FILINGS.

    (a) Report Required.--Section 18(c)(4) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(4)) is amended by striking ``request 
reports'' and all that follows through the period at the end of the 
paragraph and inserting the following: ``request a report on the 
competitive factors involved from the Attorney General. The report 
shall be furnished not later than 30 calendar days after the date on 
which it is requested, or not later than 10 calendar days after such 
date if the requesting agency advises the Attorney General that an 
emergency exists requiring expeditious action.''.
    (b) Timing of Transaction.--Section 18(c)(6) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(6)) is amended by striking the third 
sentence and inserting the following: ``If the agency has advised the 
Attorney General of the existence of an emergency requiring expeditious 
action and has requested a report on the competitive factors within 10 
days, the transaction may not be consummated before the fifth calendar 
day after the date of approval by the agency.''.
    (c) Evaluation of Competitive Effect.--
            (1) Amendments to the bank holding company act of 1956.--
        Section 3(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1842(c)) is amended--
                    (A) by adding at the end the following new 
                paragraph:
            ``(6) Evaluation of competitive effect.--The Board may not 
        disapprove of a transaction pursuant to paragraph (1)(B) unless 
        the Board takes into account, to the extent that data are 
        readily available--
                    ``(A) competition from institutions, other than 
                depository institutions (as defined in section 3 of the 
                Federal Deposit Insurance Act), that provide financial 
                services;
                    ``(B) efficiencies and cost savings that the 
                transaction may create;
                    ``(C) deposits of the participants in the 
                transaction that are not derived from the relevant 
                market;
                    ``(D) the capacity of savings associations to make 
                small business loans;
                    ``(E) lending by institutions other than depository 
                institutions to small businesses; and
                    ``(F) such other factors as the Board deems 
                relevant.''; and
                    (B) in paragraph (1)(B), by striking ``restraint or 
                trade'' and inserting ``restraint of trade''.
            (2) Amendments to the federal deposit insurance act.--
        Section 18(c)(5) of the Federal Deposit Insurance Act (12 
        U.S.C. 1828(c)(5)) is amended--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (B) by inserting ``(A)'' after ``(5)'';
                    (C) by striking ``In every case'' and inserting the 
                following:
            ``(B) In every case under this subsection''; and
                    (D) by adding at the end the following:
            ``(C) The responsible agency may not disapprove of a 
        transaction pursuant to subparagraph (A), unless the agency 
        takes into account--
                    ``(i) competition from institutions that provide 
                financial services;
                    ``(ii) efficiencies and cost savings that the 
                transaction may create;
                    ``(iii) deposits of the participants in the 
                transaction that are not derived from the relevant 
                markets;
                    ``(iv) the capacity of the institutions to make 
                small business loans;
                    ``(v) lending by institutions other than depository 
                institutions to small businesses; and
                    ``(vi) such other factors as the responsible agency 
                deems relevant.''.

SEC. 305. ELIMINATION OF SAIF AND DIF SPECIAL RESERVES.

    (a) SAIF Special Reserves.--Section 11(a)(6) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(a)(6)) is amended by striking 
subparagraph (L).
    (b) DIF Special Reserves.--Section 2704 of the Deposit Insurance 
Funds Act of 1996 (12 U.S.C. 1821 note) is amended--
            (1) by striking subsection (b); and
            (2) in subsection (d)--
                    (A) by striking paragraph (4);
                    (B) in paragraph (6)(C)(i), by striking ``(6) and 
                (7)'' and inserting ``(5), (6), and (7)''; and
                    (C) in paragraph (6)(C), by striking clause (ii) 
                and inserting the following:
                            ``(ii) by redesignating paragraph (8) as 
                        paragraph (5).''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. ALTERNATIVE COMPLIANCE METHODS FOR ADVERTISING CREDIT TERMS.

    Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 et seq.) is 
amended by adding at the end the following new section:

``SEC. 148. ALTERNATIVE DISCLOSURES.

    ``(a) In General.--A radio or television advertisement to aid, 
promote, or assist, directly or indirectly, any extension of consumer 
credit may satisfy the disclosure requirements in sections 143, 144(d), 
147(a), or 147(e), by complying with all of the requirements in 
subsections (b) and (c) of this section.
    ``(b) Information To Be Disclosed.--A radio or television 
advertisement referred to in subsection (a) complies with this 
subsection if it clearly and conspicuously sets forth, in such form and 
manner as the Board may require--
            ``(1) the annual percentage rate of any finance charge and, 
        at the option of the creditor, the simple interest rate with 
        respect to closed-end credit, or the periodic rate with respect 
        to an open-end credit plan;
            ``(2) whether the interest rate may vary;
            ``(3) if the advertisement states an introductory rate (or 
        states with respect to a variable-rate plan an initial rate 
        that is not based on the index and margin used to make later 
        rate adjustments)--
                    ``(A) with equal prominence, the annual percentage 
                rate that will be in effect after the introductory or 
                initial rate period expires (or for a variable-rate 
                plan, a reasonably current annual percentage rate that 
                would have been in effect using the index and margin); 
                and
                    ``(B) the period during which the introductory or 
                initial rate will remain in effect;
            ``(4) the amount of any annual fee for an open-end credit 
        plan;
            ``(5) a telephone number established in accordance with 
        subsection (c) that may be used by consumers to obtain all of 
        the information otherwise required to be disclosed pursuant to 
        sections 143 and 144(d), and subsections (a) and (e) of section 
        147; and
            ``(6) a statement that the consumer may use the telephone 
        number established in accordance with subsection (c) to obtain 
        further details about additional terms and costs associated 
        with the offer of credit.
    ``(c) Requirements for Telephone Numbers.--In the case of an 
advertisement described in subsection (b) that refers to a telephone 
number--
            ``(1) the creditor shall establish the telephone number for 
        a broadcast area not later than the date on which the 
        advertisement is first broadcast in that area;
            ``(2) the required information shall be available by 
        telephone for a broadcast area for a period of not less than 10 
        days following the date of the final broadcast of the 
        advertisement in that area;
            ``(3) the creditor shall provide all of the information 
        that is otherwise required pursuant to sections 143 and 144(d), 
        and subsections (a) and (e) of section 147 orally by telephone 
        or, if requested by the consumer, in written form; and
            ``(4) the consumer shall obtain the required information by 
        telephone without incurring any long-distance charges.''.

SEC. 402. POSITIONS OF BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM ON 
              THE EXECUTIVE SCHEDULE.

    (a) In General.--
            (1) Positions at level i of the executive schedule.--
        Section 5312 of title 5, United States Code, is amended by 
        adding at the end the following:
            ``Chairman, Board of Governors of the Federal Reserve 
        System.''.
            (2) Positions at level ii of the executive schedule.--
        Section 5313 of title 5, United States Code, is amended--
                    (A) by striking ``Chairman, Board of Governors of 
                the Federal Reserve System.''; and
                    (B) by adding at the end the following:
            ``Members, Board of Governors of the Federal Reserve 
        System.''.
            (3) Positions at level iii of the executive schedule.--
        Section 5314 of title 5, United States Code, is amended by 
        striking ``Members, Board of Governors of the Federal Reserve 
System.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on the first day of the first pay period for 
the Chairman and Members of the Board of Governors of the Federal 
Reserve System beginning on or after the date of enactment of this 
section.

SEC. 403. FEDERAL HOUSING FINANCE BOARD.

    Section 2A(b)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1422a(b)(2)) is amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively.

SEC. 404. CRA FLEXIBILITY FOR CREDIT CARD BANKS.

    Section 2(c)(2)(F) of the Bank Holding Company Act of 1956 (12 
U.S.C. 1841(c)(2)(F)) is amended--
            (1) in clause (i), by striking ``in credit card 
        operations;'' and inserting ``in--
                                    ``(I) credit card operations; and
                                    ``(II) making and purchasing loans, 
                                in an aggregate amount not to exceed 1 
                                percent of the total assets of the 
                                institution, which loans help to meet 
                                the credit needs of low- and moderate-
                                income persons and neighborhoods or 
                                promote economic development by 
                                financing small businesses or farms, 
                                consistent with the safe and sound 
                                operation of the institution;''; and
            (2) in clause (v), by inserting before the period ``, other 
        than making or purchasing loans for the purposes described in 
        and to the extent permitted in clause (i)(II)''.

                     TITLE V--TECHNICAL CORRECTIONS

SEC. 501. TECHNICAL CORRECTION RELATING TO DEPOSIT INSURANCE FUNDS.

    (a) In General.--Section 2707 of the Deposit Insurance Funds Act of 
1996 (Public Law 104-208; 110 Stat. 3009-496) is amended--
            (1) by striking ``7(b)(2)(C)'' and inserting 
        ``7(b)(2)(E)''; and
            (2) by striking ``, as redesignated by section 2704(d)(6) 
        of this subtitle''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
deemed to have the same effective date as section 2707 of the Deposit 
Insurance Funds Act of 1996.

SEC. 502. RULES FOR CONTINUATION OF DEPOSIT INSURANCE FOR MEMBER BANKS 
              CONVERTING CHARTERS.

    Section 8(o) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(o)) is amended in the second sentence, by striking ``subsection 
(d) of section 4'' and inserting ``subsection (c) or (d) of section 
4''.

SEC. 503. AMENDMENTS TO THE REVISED STATUTES.

    (a) Waiver of Citizenship Requirement for National Bank 
Directors.--Section 5146 of the Revised Statutes of the United States 
(12 U.S.C. 72) is amended in the first sentence, by inserting before 
the period ``, and waive the requirement of citizenship in the case of 
not more than a minority of the total number of directors''.
    (b) Technical Amendment to the Revised Statutes.--Section 329 of 
the Revised Statutes of the United States (12 U.S.C. 11) is amended by 
striking ``to be interested in any association issuing national 
currency under the laws of the United States'' and inserting ``to hold 
an interest in any national bank''.
    (c) Repeal of Unnecessary Capital and Surplus Requirement.--Section 
5138 of the Revised Statutes of the United States (12 U.S.C. 51) is 
repealed.

SEC. 504. CONFORMING CHANGE TO THE INTERNATIONAL BANKING ACT OF 1978.

    Section 4(b) of the International Banking Act of 1978 (12 U.S.C. 
3102(b)) is amended in the second sentence, by striking paragraph (1) 
and by redesignating paragraphs (2) through (4) as paragraphs (1) 
through (3), respectively.`