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Union Calendar No. 395 

115TH CONGRESS 

2D SESSION H. R. 1426 

[Report No. 115–530] 

To amend the Home Owners’ Loan Act to allow Federal savings associations 

to elect to operate as national banks, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 8, 2017 

Mr. ROTHFUS (for himself and Mr. HIMES) introduced the following bill; 

which was referred to the Committee on Financial Services 

JANUARY 29, 2018 

Additional sponsors: Mr. STIVERS, Mr. CRAMER, Mr. COURTNEY, Mr. TIPTON, 

Mr. MESSER, and Mr. GOTTHEIMER

JANUARY 29, 2018 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


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•HR 1426 RH

A BILL 

To amend the Home Owners’ Loan Act to allow Federal 

savings associations to elect to operate as national banks, 

and for other purposes. 


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•HR 1426 RH

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Savings Asso5 ciation Charter Flexibility Act of 2017’’. 

6 SEC. 2. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO 

7 OPERATE AS A COVERED SAVINGS ASSOCIA8 TION. 

9 The Home Owners’ Loan Act is amended by inserting 

10 after section 5 (12 U.S.C. 1464) the following: 

11 ‘‘SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS 

12 ASSOCIATION. 

13 ‘‘(a) DEFINITION.—In this section, the term ‘covered 

14 savings association’ means a Federal savings association 

15 that makes an election approved under subsection (b). 

16 ‘‘(b) ELECTION.— 

17 ‘‘(1) IN GENERAL.—Upon issuance of the rules 

18 described in subsection (f), a Federal savings asso19 ciation may elect to operate as a covered savings as20 sociation by submitting a notice to the Comptroller 

21 of such election. 

22 ‘‘(2) APPROVAL.—A Federal savings association 

23 shall be deemed to be approved to operate as a cov24 ered savings association on the date that is 60 days 

25 after the date on which the Comptroller receives the 


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1 notice under paragraph (1), unless the Comptroller 

2 notifies the Federal savings association otherwise. 

3 ‘‘(c) RIGHTS AND DUTIES.—Notwithstanding any 

4 other provision of law and except as otherwise provided 

5 in this section, a covered savings association shall— 

6 ‘‘(1) have the same rights and privileges as a 

7 national bank that has its main office situated in the 

8 same location as the home office of the covered sav9 ings association; and 

10 ‘‘(2) be subject to the same duties, restrictions, 

11 penalties, liabilities, conditions, and limitations that 

12 would apply to such a national bank. 

13 ‘‘(d) TREATMENT OF COVERED SAVINGS ASSOCIA14 TIONS.—A covered savings association shall be treated as 

15 a Federal savings association for the purposes— 

16 ‘‘(1) of governance of the covered savings asso17 ciation, including incorporation, bylaws, boards of 

18 directors, shareholders, and distribution of divi19 dends; 

20 ‘‘(2) of consolidation, merger, dissolution, con21 version (including conversion to a stock bank or to 

22 another charter), conservatorship, and receivership; 

23 and 

24 ‘‘(3) determined by regulation of the Comp25 troller. 


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1 ‘‘(e) EXISTING BRANCHES.—A covered savings asso2 ciation may continue to operate any branch or agency the 

3 covered savings association operated on the date on which 

4 an election under subsection (b) is approved. 

5 ‘‘(f) RULEMAKING.—The Comptroller shall issue 

6 rules to carry out this section— 

7 ‘‘(1) that establish streamlined standards and 

8 procedures that clearly identify required documenta9 tion or timelines for an election under subsection 

10 (b); 

11 ‘‘(2) that require a Federal savings association 

12 that makes an election under subsection (b) to iden13 tify specific assets and subsidiaries— 

14 ‘‘(A) that do not conform to the require15 ments for assets and subsidiaries of a national 

16 bank; and 

17 ‘‘(B) that are held by the Federal savings 

18 association on the date on which the Federal 

19 savings association submits a notice of such 

20 election; 

21 ‘‘(3) that establish— 

22 ‘‘(A) a transition process for bringing such 

23 assets and subsidiaries into conformance with 

24 the requirements for a national bank; and 


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1 ‘‘(B) procedures for allowing the Federal 

2 savings association to provide a justification for 

3 grandfathering such assets and subsidiaries 

4 after electing to operate as a covered savings 

5 association; 

6 ‘‘(4) that establish standards and procedures to 

7 allow a covered savings association to terminate an 

8 election under subsection (b) after an appropriate 

9 period of time or to make a subsequent election; 

10 ‘‘(5) that clarify requirements for the treatment 

11 of covered savings associations, including the provi12 sions of law that apply to covered savings associa13 tions; and 

14 ‘‘(6) as the Comptroller deems necessary and in 

15 the interests of safety and soundness.’’. 


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dlhill on DSK3GLQ082PROD with BILLS
Union Calendar No. 395 

115TH CONGRESS 

2D SESSION H. R. 1426 

[Report No. 115–530] 

A BILL 

To amend the Home Owners’ Loan Act to allow 

as national banks, and for other purposes. Federal savings associations to elect to operate 

JANUARY 29, 2018 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


dlhill on DSK3GLQ082PROD with BILLS