Calendar No. 393

103D CONGRESS

2D SESSION S. 1963

[Report No. 103–240]

A BILL

To permit certain financial institutions to engage in

interstate banking and branching.

MARCH 23 (legislative day, FEBRUARY 22), 1994

Read twice and placed on the calendar
II

Calendar No. 393

103D CONGRESS

2D SESSION S. 1963

[Report No. 103–240]

To permit certain financial institutions to engage in interstate banking and

branching.

IN THE SENATE OF THE UNITED STATES

MARCH 23 (legislative day, FEBRUARY 22), 1994

Mr. RIEGLE, 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 permit certain financial institutions to engage in

interstate banking and branching.

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 ‘‘Interstate Banking

5 and Branching Act of 1994’’.
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1 SEC. 2. INTERSTATE BANKING.

2 (a) IN GENERAL.—Section 3(d) of the Bank Holding

3 Company Act of 1956 (12 U.S.C. 1842(d)) is amended

4 to read as follows:

5 ‘‘(d) STATE BOUNDARIES.—

6 ‘‘(1) APPROVALS AUTHORIZED.—

7 ‘‘(A) ACQUISITION OF EXISTING BANKS.—

8 The Board may approve an application under

9 this section to permit a bank holding company

10 that is adequately capitalized and adequately

11 managed to acquire control of, or all or sub12 stantially all of the assets of, an existing bank

13 located outside of the home State of such bank

14 holding company.

15 ‘‘(B) EXISTING BANKS.—For purposes of

16 this subsection, a bank that does not open for

17 business and that has been chartered solely for

18 the purpose of acquiring control of, or all or

19 substantially all of the assets of, an existing

20 bank shall be deemed to have been in existence

21 for the same period of time as the bank to be

22 acquired.

23 ‘‘(C) COMMUNITY REINVESTMENT COMPLI24 ANCE.—In determining whether to approve an

25 application under subparagraph (A), the Board

26 shall consider the applicant’s record of compli-
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1 ance with applicable Federal and State commu2 nity reinvestment laws.

3 ‘‘(D) STATE LAW.—Subject to paragraphs

4 (2) and (3), a transaction approved under sub5 paragraph (A) may occur without regard to

6 whether such transaction is permitted under the

7 law of the State in which the bank to be ac8 quired is located.

9 ‘‘(2) CONCENTRATION AND OTHER LIMITS.—

10 The Board may not approve an application under

11 paragraph (1)(A) if—

12 ‘‘(A) the applicant controls, or upon com13 pletion of the acquisition would control, more

14 than 10 percent of the total deposits held by in15 sured depository institutions in the United

16 States, as determined under regulations of the

17 Board;

18 ‘‘(B) the applicant controls, or upon com19 pletion of the acquisition would control, 25 per20 cent or more of the total deposits held by in21 sured depository institutions in the State in

22 which the bank to be acquired is located, as de23 termined under regulations of the Board, except

24 that the State bank supervisor may waive the

25 applicability of this clause on a case-by-case
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1 basis if such waiver does not have the effect of

2 discriminating against out-of-State banks, out3 of-State bank holding companies, or subsidi4 aries thereof; or

5 ‘‘(C) the acquisition would result in the ap6 plicant directly or indirectly controlling a bank

7 that has been in existence for a shorter period

8 of time, if any, than is prescribed by the law of

9 the State in which such bank is located in effect

10 on the date on which the application is filed

11 with the Board, only if such State law—

12 ‘‘(i) does not prescribe a period of

13 more than 5 years; and

14 ‘‘(ii) does not have the effect of dis15 criminating among out-of-State banks, out16 of-State bank holding companies, or sub17 sidiaries thereof.

18 ‘‘(3) NO EFFECT ON ANTITRUST LAWS.—Noth19 ing in this subsection affects Federal or State anti20 trust laws that do not have the effect of discriminat21 ing against out-of-State banks, out-of-State bank

22 holding companies, or subsidiaries thereof.

23 ‘‘(4) ADEQUATE CAPITALIZATION.—For pur24 poses of this subsection, a bank holding company is
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1 ‘adequately capitalized’ if it meets or exceeds all ap2 plicable Federal regulatory capital standards.’’.

3 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

4 Section 2 of the Bank Holding Company Act of 1956 (12

5 U.S.C. 1841) is amended by adding at the end the follow6 ing new subsections:

7 ‘‘(n) INCORPORATED DEFINITIONS.—For purposes of

8 this Act, the terms ‘insured depository institution’, ‘appro9 priate Federal banking agency’, and ‘State bank super10 visor’ have the same meanings as in section 3 of the Fed11 eral Deposit Insurance Act.

12 ‘‘(o) OTHER DEFINITIONS.—For purposes of this

13 Act—

14 ‘‘(1) the ‘home State’ of a bank holding com15 pany is the State in which the total deposits of its

16 banking subsidiaries were largest on July 1, 1966,

17 or the date on which such company became a bank

18 holding company, whichever is later; and

19 ‘‘(2) the ‘home State’ of a bank is—

20 ‘‘(A) in the case of a State bank, the State

21 in which it was chartered; and

22 ‘‘(B) in the case of a national bank, in the

23 State in which its main office is located.’’.
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1 (c) EFFECTIVE DATE.—This section and the amend2 ments made by this section shall become effective 1 year

3 after the date of enactment of this Act.

4 SEC. 3. CONVERSION OF BANKS TO BRANCHES.

5 (a) IN GENERAL.—Section 3 of the Bank Holding

6 Company Act of 1956 (12 U.S.C. 1842) is amended by

7 adding at the end the following new subsection:

8 ‘‘(h) INTERSTATE COMBINATIONS.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) COMBINATIONS AUTHORIZED.—Be11 ginning 2 years after the date of enactment of

12 this subsection, a bank holding company having

13 subsidiary banks located in more than 1 State

14 may combine 2 or more of such banks into a

15 single, resulting bank by means of a merger,

16 consolidation, or other transaction approved by

17 the appropriate Federal banking agency.

18 ‘‘(B) CONTINUED OPERATIONS.—A result19 ing bank may, subject to the approval of the

20 appropriate Federal banking agency, retain and

21 operate as branches the main offices and any

22 branches which, immediately prior to the trans23 action, were being operated by any combined

24 bank or the resulting bank.
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1 ‘‘(C) SURRENDER OF CHARTER AFTER

2 COMBINATION.—On the date on which a com3 bination authorized by this paragraph becomes

4 effective, the charters of the combined banks

5 shall be surrendered to the regulatory authority

6 that issued the charters.

7 ‘‘(2) APPLICABILITY.—A combination under

8 paragraph (1) may only be effected in the case of a

9 merger, consolidation, or other transaction that is

10 undertaken by a bank holding company that is ade11 quately capitalized and adequately managed.

12 ‘‘(3) ACTIVITIES OF THE RESULTING BANK.—

13 ‘‘(A) ADDITIONAL BRANCHES.—Following

14 any combination effected under paragraph (1),

15 the resulting bank may establish, acquire, or

16 operate additional branches at any location

17 where the resulting bank or a combined bank

18 could have established, acquired, or operated a

19 branch under the applicable Federal or State

20 law as if it had not been a party to such com21 bination.

22 ‘‘(B) INTRASTATE BRANCHING.—Except as

23 expressly provided in this subsection, nothing in

24 this subsection shall be deemed to amend, re25 peal, or preempt, either expressly or by implica-
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1 tion, any Federal or State law relating to the

2 establishment, acquisition, or operation of intra3 state branches by national or State banks.

4 ‘‘(C) CONDITIONS.—Prior to granting ap5 proval to effect a combination under paragraph

6 (1), the appropriate Federal banking agency

7 shall consider each bank’s rating under the

8 Community Reinvestment Act of 1977 and the

9 comments of the appropriate State bank regu10 latory authorities regarding each bank’s compli11 ance with applicable State community reinvest12 ment laws.

13 ‘‘(D) IMPOSITION OF SHARES TAX BY

14 HOST STATES.—In order to assure that an out15 of-State bank contributes a fair share to a host

16 State’s revenues, if any branch of an out-of17 State bank established pursuant to paragraph

18 (1) or subparagraph (A) of this paragraph con19 tinues in operation, a proportionate amount of

20 the value of the shares of the out-of-State bank

21 may be subject to any bank shares tax levied or

22 imposed by any host State or political subdivi23 sion thereof based upon an allocation of net in24 come, capital or net worth, and other factors

25 employed in computing such value pursuant to
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1 an allocation method adopted by the host

2 State’s taxing authorities pursuant to State

3 law, if such method does not have the effect of

4 discriminating against out-of-State banks, out5 of-State bank holding companies, or subsidi6 aries thereof.

7 ‘‘(4) ACTIVITIES OF BRANCHES.—A State bank

8 that establishes one or more branches in accordance

9 with paragraph (1) or paragraph (3)(A) may not

10 conduct any activity at any branch located in a host

11 State that is not permitted for banks chartered by

12 such host State.

13 ‘‘(5) APPLICABLE LAW.—

14 ‘‘(A) IN GENERAL.—

15 ‘‘(i) NATIONAL BANK BRANCHES.—

16 Any branch of a national bank that is es17 tablished as the result of a combination in

18 accordance with paragraph (1) or para19 graph (3)(A) shall be subject to the laws of

20 the host State, including those that govern

21 intrastate branching, consumer protection,

22 fair lending, and community reinvestment,

23 as if it were a branch of a national bank

24 having its main office in that State.
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1 ‘‘(ii) STATE BANK BRANCHES.—Any

2 branch of a State bank that is established

3 as the result of a combination in accord4 ance with paragraph (1) or paragraph

5 (3)(A) shall be subject to the laws of the

6 host State, including those that govern

7 intrastate branching, consumer protection,

8 fair lending, and community reinvestment,

9 as if it were a branch of a bank chartered

10 under the laws of such State.

11 ‘‘(B) FILING REQUIREMENT.—A host

12 State may require any bank located in another

13 State that wishes to establish a branch within

14 the host State as a result of a combination au15 thorized by paragraph (1) to comply with filing

16 requirements that—

17 ‘‘(i) are not discriminatory in effect;

18 and

19 ‘‘(ii) are similar in their effect to and

20 are subject to similar sanctions as those

21 that are imposed on a corporation having

22 its main office in another State that is not

23 engaged in the business of banking and

24 that seeks to engage in business in the

25 host State.
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1 ‘‘(6) STATE ELECTION TO PROHIBIT INTER2 STATE COMBINATIONS.—

3 ‘‘(A) IN GENERAL.—Paragraph (1) does

4 not apply to a bank holding company located in

5 a State that has enacted a law after the date

6 of enactment of this subsection that applies

7 equally to all out-of-State banks, and that ex8 pressly prohibits interstate combinations involv9 ing a bank located in the State, as authorized

10 under paragraph (1).

11 ‘‘(B) EFFECT OF PROHIBITION.—A bank

12 located in a State that has in effect a prohibi13 tion described in subparagraph (A) may not be

14 combined, and shall have no authority to be

15 combined under paragraph (1), with a bank lo16 cated outside of that State.

17 ‘‘(C) LAWS ENACTED SUBSEQUENT TO AU18 THORIZATION DATE.—A law enacted by a State

19 pursuant to subparagraph (A) shall have no ef20 fect on combinations that were approved prior

21 to the effective date or the date of enactment

22 of such law, whichever is later.

23 ‘‘(7) STATE ELECTION TO PERMIT INTERSTATE

24 COMBINATIONS.—A combination under paragraph

25 (1) may be undertaken during the 2-year period be-
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1 ginning on the date of enactment of this subsection,

2 if each of the States in which 1 or more banks that

3 are to be combined into a single, resulting bank is

4 located has in effect on the date on which the com5 bination is approved a law that applies equally to all

6 out-of-State banks and that expressly permits inter7 state combinations by national and State-chartered

8 banks. A State described in the preceding sentence

9 may impose conditions on the branch of the result10 ing bank located in that State if—

11 ‘‘(A) the conditions do not have the effect

12 of discriminating against out-of-State banks,

13 out-of-State bank holding companies, or sub14 sidiaries thereof (other than on the basis of a

15 reciprocal treatment requirement);

16 ‘‘(B) the imposition of the conditions is not

17 preempted by Federal law; and

18 ‘‘(C) the conditions do not apply or require

19 performance beyond the end of the 2-year pe20 riod beginning on the date of enactment of this

21 subsection.

22 ‘‘(8) COMBINATIONS AFTER THE EXPIRATION

23 OF 2-YEAR PERIOD.—A State described in para24 graphs (6) or (7) may elect at any later time to per25 mit or withdraw permission for interstate combina-
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1 tions authorized under paragraph (1) if such State

2 enacts a law that applies equally to all out-of-State

3 banks and that expressly permits (or withdraws per4 mission for, as the case may be) interstate combina5 tions by all national and State banks.

6 ‘‘(9) LIMITATIONS.—Nothing in this sub7 section—

8 ‘‘(A) affects Federal or State antitrust

9 laws that do not have the effect of discriminat10 ing against out-of-State banks, out-of-State

11 bank holding companies, or subsidiaries thereof;

12 or

13 ‘‘(B) affects section 5197 of the Revised

14 Statutes or section 27 of the Federal Deposit

15 Insurance Act.

16 ‘‘(10) RESERVATION OF CERTAIN RIGHTS TO

17 STATES.—Nothing in this subsection limits in any

18 way the right of a State to—

19 ‘‘(A) determine the authority of State

20 banks chartered in that State to acquire, estab21 lish, and maintain branches; or

22 ‘‘(B) supervise, regulate, and examine

23 State banks chartered by that State.

24 ‘‘(11) DEFINITIONS.—For purposes of this sub25 section—
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1 ‘‘(A) the term ‘combined bank’ means any

2 bank participating in a combination under

3 paragraph (1), other than the resulting bank;

4 ‘‘(B) the term ‘host State’ means the State

5 in which a bank establishes or maintains a

6 branch other than the State in which the bank

7 is located and engaged in the business of bank8 ing;

9 ‘‘(C) a bank shall be deemed to be ‘lo10 cated’—

11 ‘‘(i) in the case of a State bank, in the

12 State in which it was chartered; and

13 ‘‘(ii) in the case of a national bank, in

14 the State in which its main office is lo15 cated;

16 ‘‘(D) the term ‘resulting bank’ means a

17 banking subsidiary of a bank holding company

18 that has resulted from a transaction effected

19 under paragraph (1) involving the combination

20 of 2 or more subsidiary banks of the bank hold21 ing company located in 2 or more States; and

22 ‘‘(E) the term ‘State bank’ has the same

23 meaning as in section 3 of the Federal Deposit

24 Insurance Act.’’.
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1 (b) CONFORMING AMENDMENT TO THE NATIONAL

2 BANK ACT.—Section 5155(c) of the Revised Statutes (12

3 U.S.C. 36(c)) is amended in the first sentence, by striking

4 ‘‘A national banking association’’ and inserting ‘‘Except

5 as provided in section 3(h) of the Bank Holding Company

6 Act of 1956, a national banking association’’.

7 SEC. 4. AMENDMENTS TO FEDERAL DEPOSIT INSURANCE

8 ACT AND THE ACT ENTITLED ‘‘AN ACT TO

9 PROVIDE FOR THE CONSOLIDATION OF NA10 TIONAL BANKING ASSOCIATIONS’’.

11 (a) FEDERAL DEPOSIT INSURANCE ACT AMEND12 MENTS.—Section 18(d) of the Federal Deposit Insurance

13 Act (12 U.S.C. 1828(d)) is amended by adding at the end

14 the following new paragraph:

15 ‘‘(3) COORDINATION OF EXAMINATION AUTHOR16 ITY.—

17 ‘‘(A) IN GENERAL.—A State bank super18 visor of a host State may examine a branch op19 erated in such State of a bank chartered by a

20 State other than that host State that resulted

21 from a combination effected under section 3(h)

22 of the Bank Holding Company Act of 1956—

23 ‘‘(i) for the purpose of determining

24 compliance with host State laws, including

25 those that govern banking, taxation, com-
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1 munity reinvestment, fair lending,

2 consumer protection, and permissible ac3 tivities; and

4 ‘‘(ii) to ensure that the activities of

5 the branch are not conducted in an unsafe

6 or unsound manner.

7 ‘‘(B) ENFORCEMENT.—In the event that

8 the State bank supervisor of the host State de9 termines that there is a violation of the law of

10 the host State concerning the activities being

11 conducted by a branch described in subpara12 graph (A), the State bank supervisor of the

13 host State may undertake such enforcement ac14 tions and proceedings as would be permitted

15 under the law of the host State as if the branch

16 were a bank chartered by that host State.

17 ‘‘(C) COOPERATIVE AGREEMENT.—The

18 State bank supervisors from 2 or more States

19 may enter into cooperative agreements to facili20 tate State regulatory supervision of State-char21 tered banks, including cooperative agreements

22 relating to the coordination of examinations and

23 joint participation in examinations.

24 ‘‘(D) FEDERAL REGULATORY AUTHOR25 ITY.—Nothing in this subsection limits in any
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1 way the authority of the appropriate Federal

2 banking agency to examine any bank or branch

3 of a bank for which the agency is the appro4 priate Federal banking agency.

5 ‘‘(E) REVIEW OF INTERSTATE AGREE6 MENTS.—If the appropriate Federal banking

7 agency determines that the States have failed to

8 reach an agreement under subparagraph (C), or

9 that such an agreement fails to adequately pro10 tect the deposit insurance funds, the appro11 priate Federal banking agency shall not defer to

12 State examinations of branches operated in the

13 host State by out-of-State banks.’’.

14 (b) NATIONAL BANKING ASSOCIATIONS.—The Act

15 entitled ‘‘An Act to provide for the consolidation of na16 tional banking associations’’, approved November 7, 1918

17 (12 U.S.C. 215 et seq.) is amended—

18 (1) in the first sentence of subsection (a) of the

19 first section, by inserting ‘‘, or in any State in which

20 a bank involved in an interstate combination author21 ized by section 3(h) of the Bank Holding Company

22 Act of 1956 is located,’’ after ‘‘located in the same

23 State’’;

24 (2) by inserting before the period at the end of

25 subsection (d) of the first section ‘‘, except that the
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1 applicability of State law to an interstate combina2 tion undertaken in accordance with section 3(h) of

3 the Bank Holding Company Act of 1956 is deter4 mined in accordance with the provisions of that sec5 tion’’;

6 (3) by adding at the end of the first section the

7 following new subsection:

8 ‘‘(h) The procedures, restrictions, and requirements

9 set forth in this section apply to interstate combinations

10 undertaken pursuant to and in accordance with section

11 3(h) of the Bank Holding Company Act of 1956 to the

12 extent that the procedures, restrictions, and requirements

13 of this section are not inconsistent with that section

14 3(h).’’;

15 (4) in the first sentence of section 2(a)—

16 (A) by striking ‘‘under an agreement not

17 inconsistent with this Act,’’; and

18 (B) by inserting ‘‘or in any State in which

19 a bank involved in an interstate combination

20 authorized by section 3(h) of the Bank Holding

21 Company Act of 1956 is located,’’ after ‘‘lo22 cated within the same State,’’;

23 (5) in the sixth sentence of section 2(d), by in24 serting before the period ‘‘, except that the applica25 bility of State law to the transaction undertaken
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1 pursuant to section 3(h) of the Bank Holding Com2 pany Act of 1956 is determined in accordance with

3 the provisions of that section’’;

4 (6) in section 2, by adding at the end the fol5 lowing new subsection:

6 ‘‘(h)(1) The procedures, restrictions, and require7 ments set forth in this section apply to interstate mergers

8 undertaken pursuant to and in accordance with section

9 3(h) of the Bank Holding Company Act of 1956 to the

10 extent that the procedures, restrictions, and requirements

11 of this section are not inconsistent with that section 3(h).

12 ‘‘(2) Paragraph (1) shall apply to a State member

13 bank involved in an interstate merger on the same terms

14 and conditions and subject to the same procedures, re15 strictions, and requirements as are applicable to the con16 solidation of branches by a national banking association

17 involved in an interstate merger.’’; and

18 (7) in paragraph (4) of section 3, by inserting

19 ‘‘or within any State in which a bank involved in an

20 interstate combination authorized by section 3(h) of

21 the Bank Holding Company Act of 1956 is located,’’

22 after ‘‘within the same State,’’.
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1 SEC. 5. ACQUISITION OF INTERSTATE BRANCHES BY NA2 TIONAL AND STATE BANKS.

3 (a) ACQUISITION OF INTERSTATE BRANCHES BY

4 STATE BANKS.—Section 18(d) of the Federal Deposit In5 surance Act (12 U.S.C. 1828(d)) is amended by adding

6 at the end the following new paragraphs:

7 ‘‘(4) INTERSTATE BRANCHING BY STATE

8 BANKS.—

9 ‘‘(A) IN GENERAL.—Beginning on the date

10 of enactment of this paragraph, notwithstand11 ing any other provision of law, a host State

12 may, expressly by statute and not merely by im13 plication, permit all out-of-State banks to ac14 quire or establish a branch in the host State on

15 a basis that does not have the effect of discrimi16 nating against out-of-State banks, out-of-State

17 bank holding companies, or subsidiaries thereof.

18 A branch established under this paragraph shall

19 be operated in accordance with the procedures,

20 restrictions, and requirements set forth in sec21 tion 3(h) of the Bank Holding Company Act of

22 1956, and the provisions of that section shall

23 apply to the branch as if the branch resulted

24 from a combination effected in accordance with

25 paragraph (1) of that section 3(h).
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1 ‘‘(B) FDIC APPROVAL.—A State

2 nonmember bank may acquire, establish, and

3 operate a branch under this paragraph only if

4 the bank is adequately capitalized and ade5 quately managed and with the prior approval of

6 the Corporation.

7 ‘‘(5) DEFINITIONS.—For purposes of this sub8 section—

9 ‘‘(A) the term ‘host State’ means a State

10 in which a bank acquires, establishes, or main11 tains a branch, other than the State in which

12 the bank is located and engaged in the business

13 of banking; and

14 ‘‘(B) a bank shall be deemed to be ‘lo15 cated’—

16 ‘‘(i) in the case of a State bank, in the

17 State in which it was chartered; and

18 ‘‘(ii) in the case of a national bank, in

19 the State in which its main office is lo20 cated.’’.

21 (b) INTERSTATE BRANCHING BY NATIONAL

22 BANKS.—Section 5155 of the Revised Statutes (12 U.S.C.

23 36) is amended—

24 (1) by redesignating subsections (d) through (h)

25 as subsections (e) through (i), respectively; and
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1 (2) by inserting after subsection (c) the follow2 ing new subsection:

3 ‘‘(d) INTERSTATE BRANCHING BY NATIONAL

4 BANKS.—

5 ‘‘(1) APPROVALS AUTHORIZED.—Notwithstand6 ing any other provision of law, the Comptroller of

7 the Currency may approve an application under this

8 subsection for a national bank that is adequately

9 capitalized and adequately managed to acquire or es10 tablish a branch in a host State if the host State ex11 pressly permits, pursuant to section 18(d)(4) of the

12 Federal Deposit Insurance Act, all out-of-State

13 banks to establish such branches. Each such branch

14 shall be operated in accordance with the procedures,

15 restrictions, and requirements set forth in section

16 3(h) of the Bank Holding Company Act of 1956,

17 and the provisions of that section shall apply to the

18 branch as if the branch resulted from a combination

19 effected in accordance with paragraph (1) of that

20 section 3(h).

21 ‘‘(2) DEFINITIONS.—For purposes of this sub22 section—

23 ‘‘(A) the term ‘host State’ means the State

24 in which a national bank establishes a branch

25 under paragraph (1); and
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1 ‘‘(B) the term ‘adequately capitalized’ has

2 the same meaning as in section 38 of the Fed3 eral Deposit Insurance Act.’’.

4 SEC. 6. COMMUNITY REINVESTMENT ACT EVALUATION OF

5 BANKS WITH INTERSTATE BRANCHES.

6 (a) IN GENERAL.—Section 807 of the Community

7 Reinvestment Act of 1977 (12 U.S.C. 2906) is amended

8 by adding at the end the following new subsections:

9 ‘‘(d) INSTITUTIONS WITH INTERSTATE

10 BRANCHES.—

11 ‘‘(1) STATE-BY-STATE EVALUATION.—In the

12 case of a regulated financial institution that main13 tains domestic branches in 2 or more States, the ap14 propriate Federal financial supervisory agency shall

15 prepare—

16 ‘‘(A) a written evaluation of the entire in17 stitution’s record of performance under this

18 title, as required by subsections (a), (b), and

19 (c); and

20 ‘‘(B) for each State in which the institu21 tion maintains 1 or more domestic branches, a

22 separate written evaluation of the institution’s

23 record of performance within such State under

24 this title, as required by subsections (a), (b),

25 and (c).
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1 ‘‘(2) MULTISTATE METROPOLITAN AREAS.—In

2 the case of a regulated financial institution that

3 maintains domestic branches in 2 or more States

4 within a multistate metropolitan area, the appro5 priate Federal financial supervisory agency shall pre6 pare a separate written evaluation of the institu7 tion’s record of performance within such metropoli8 tan area under this title, as required by subsections

9 (a), (b), and (c). If the agency prepares a written

10 evaluation pursuant to this paragraph, the scope of

11 the written evaluation required under paragraph

12 (1)(B) shall be adjusted accordingly.

13 ‘‘(3) CONTENT OF STATE LEVEL EVALUA14 TION.—A written evaluation prepared pursuant to

15 paragraph (1)(B) shall—

16 ‘‘(A) present the information required by

17 subparagraphs (A) and (B) of subsection (b)(1)

18 separately for each metropolitan area in which

19 the institution maintains 1 or more domestic

20 branch offices and separately for the remainder

21 of the nonmetropolitan area of the State if the

22 institution maintains 1 or more domestic

23 branch offices in such nonmetropolitan area;

24 and
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1 ‘‘(B) describe how the Federal financial

2 supervisory agency has performed the examina3 tion of the institution, including a list of the in4 dividual branches examined.

5 ‘‘(e) DEFINITIONS.—For purposes of this section the

6 following definitions shall apply:

7 ‘‘(1) DOMESTIC BRANCH.—The term ‘domestic

8 branch’ means any branch office or other facility of

9 a regulated financial institution that accepts depos10 its, located in any State.

11 ‘‘(2) METROPOLITAN AREA.—The term ‘metro12 politan area’ means any primary metropolitan

13 statistical area, metropolitan statistical area, or con14 solidated metropolitan statistical area, as defined by

15 the Director of the Office of Management and Budg16 et, with a population of 250,000 or more, and any

17 other area identified by the appropriate Federal fi18 nancial supervisory agency.

19 ‘‘(3) STATE.—The term ‘State’ has the same

20 meaning as in section 3 of the Federal Deposit In21 surance Act.’’.

22 (b) SEPARATE PRESENTATION.—Section 807(b)(1)

23 of the Community Reinvestment Act of 1977 (12 U.S.C.

24 2906(b)(1)) is amended—
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1 (1) by redesignating subparagraphs (A) through

2 (C) as clauses (i) through (iii), respectively;

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

4 following:

5 ‘‘(A) CONTENTS OF WRITTEN EVALUA6 TION.—The public’’; and

7 (3) by adding at the end the following new sub8 paragraph:

9 ‘‘(B) METROPOLITAN AREA DISTINC10 TIONS.—The information required by clauses (i)

11 and (ii) of subparagraph (A) shall be presented

12 separately for each metropolitan area in which

13 a regulated depository institution maintains one

14 or more domestic branch offices.’’.

15 SEC. 7. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.

16 Section 5146 of the Revised Statutes (12 U.S.C. 72)

17 is amended in the first sentence by striking ‘‘two-thirds’’

18 and inserting ‘‘a majority’’.