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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1405 Introduced in Senate (IS)]

105th CONGRESS
  1st Session
                                S. 1405

   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

                            November 7, 1997

  Mr. Shelby (for himself, Mr. Mack, Mr. Faircloth, Mr. D'Amato, Mr. 
  Bryan, Mr. Grams, Mr. Kerry, Mr. Bennett, Mr. Gramm, Mr. Hagel, Mr. 
Allard, Mr. Enzi, and Ms. Moseley-Braun) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 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 1997''.
    (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 savings and demand deposit 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.
Sec. 118. Daylight overdrafts incurred by Federal home loan banks.
Sec. 119. Federal home loan bank governance amendments.
Sec. 120. Collateralization of advances to members.
           TITLE II--STREAMLINING ACTIVITIES OF INSTITUTIONS

Sec. 201. Updating of authority for community development investments.
Sec. 202. Acceptance of brokered deposits.
Sec. 203. Federal Reserve Act lending limits.
Sec. 204. Eliminate unnecessary restrictions on product marketing.
Sec. 205. Business purpose credit extensions.
Sec. 206. Affinity groups.
Sec. 207. Fair debt collection practices.
Sec. 208. Restriction on acquisitions of other insured depository 
                            institutions.
Sec. 209. Mutual holding companies.
Sec. 210. Call report simplification.
                 TITLE III--STREAMLINING AGENCY ACTIONS

Sec. 301. Scheduled meetings of Affordable Housing Advisory Board.
Sec. 302. Elimination of duplicative disclosure of fair market value of 
                            assets and liabilities.
Sec. 303. Payment of interest in receiverships with surplus funds.
Sec. 304. Repeal of reporting requirement on differences in accounting 
                            standards.
Sec. 305. Agency review of competitive factors in Bank Merger Act 
                            filings.
Sec. 306. Termination of the Thrift Depositor Protection Oversight 
                            Board.
                  TITLE IV--DISCLOSURE SIMPLIFICATION

Sec. 401. Alternative compliance method for APR disclosure.
Sec. 402. Alternative compliance methods for advertising credit terms.
                         TITLE V--MISCELLANEOUS

Sec. 501. Positions of Board of Governors of Federal Reserve System on 
                            the Executive Schedule.
Sec. 502. Consistent coverage for individuals enrolled in a health plan 
                            administered by the Federal banking 
                            agencies.
Sec. 503. Federal Housing Finance Board.
                    TITLE VI--TECHNICAL CORRECTIONS

Sec. 601. Technical correction relating to deposit insurance funds.
Sec. 602. Rules for continuation of deposit insurance for member banks 
                            converting charters.
Sec. 603. Amendments to the Revised Statutes.
Sec. 604. Conforming change to the International Banking Act.

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 to meet the reserve requirements of this 
                subsection applicable with respect to such depository 
                institution may receive earnings to be paid by the 
                Federal reserve bank at least once 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 whose behalf 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 SAVINGS AND DEMAND DEPOSIT ACCOUNTS AT 
              DEPOSITORY INSTITUTIONS.

    (a) 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.''.
    (b) Repeal of Prohibitions on Payment of Interest on Demand 
Deposits.--
            (1) Federal reserve act.--Section 19 of the Federal Reserve 
        Act (12 U.S.C. 371a) is amended by striking subsection (i).
            (2) Home owners' loan act.--The first sentence of section 
        5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C. 
        1464(b)(1)(B)) is amended by striking ``savings association may 
        not--'' and all that follows through ``(ii) permit any'' and 
        inserting ``savings association may not permit any''.
            (3) Federal deposit insurance act.--Section 18 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by 
        striking subsection (g).

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.

    (a) Streamlining Thrift Service Company Investment Requirements.--
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).''.
    (b) Regulation and Examination of Service Providers.--Section 5(d) 
of the Home Owners' Loan Act (12 U.S.C. 1464(d)) is amended by adding 
at the end the following new paragraphs:
            ``(7) Regulation and examination of savings association 
        service companies.--
                    ``(A) Service performed by contract or otherwise.--
                If a savings association, subsidiary, or any savings 
                and loan affiliate or entity, as identified by section 
                8(b)(9) of the Federal Deposit Insurance Act, that is 
                regularly examined or subject to examination by the 
                Director, causes to be performed for itself, by 
                contract or otherwise, any services authorized under 
                this Act or other applicable Federal law, whether on or 
                off its premises--
                            ``(i) such performance shall be subject to 
                        regulation and examination by the Director to 
                        the same extent as if such services were being 
                        performed by the savings association on its own 
                        premises;
                            ``(ii) the Director may authorize any other 
                        Federal banking agency (as defined in section 3 
                        of the Federal Deposit Insurance Act) that 
                        supervises such subsidiary, savings and loan 
                        affiliate, or entity to perform an examination 
                        referred to in clause (i); and
                            ``(iii) the savings association shall 
                        notify the Director of the existence of the 
                        service relationship not later than 30 days 
                        after the earlier of the date of the making of 
                        such service contract or the date of initiation 
                        of the service.
                    ``(B) Administration by the director.--The Director 
                may issue such regulations and orders, including those 
                issued pursuant to section 8 of the Federal Deposit 
                Insurance Act, as may be necessary to enable the 
                Director to administer and carry out this paragraph and 
                to prevent evasion of this paragraph.''.
    (c) Conforming Amendments to Section 8 of the Federal Deposit 
Insurance Act.--Section 8 of the Federal Deposit Insurance Act (12 
U.S.C. 1818) is amended--
            (1) in subsection (b)(9), by striking ``to any service 
        corporation of a savings association and to any subsidiary of 
        such service corporation''; and
            (2) in subsection (e)(7)(A)(ii), by striking ``(b)(8)'' and 
        inserting ``(b)(9)''.

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 approval of the 
        Director,'' after ``or to retain''; and
            (2) by striking ``to so acquire or retain'' and inserting 
        ``to acquire, by purchase or otherwise, or to retain''.

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.''.

SEC. 111. NATIONAL BANK DIRECTORS.

    (a) Amendments to the Revised Statutes.--Section 5145 of the 
Revised Statutes (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 subsidiaries or 
nonbank affiliates.
    ``(b) Scope.--Nothing in this section shall be construed--
            ``(1) to affect the applicability of section 18(c)(1) 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 contracted for in good faith before the date of the 
loan or discount transaction.''.
    (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 contracted for in good faith before the date of the loan 
        or discount transaction.''.
    (c) Removal of Prohibition on Certain Affiliations.--Section 
18(s)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1828(s)) is 
amended by striking ``be an affiliate of,''.

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(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
            (1) by striking ``purchased'';
            (2) by striking ``rights'' each place it appears and 
        inserting ``assets''; and
            (3) by striking ``90'' and inserting ``100''.

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:
            ``(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) Conforming Amendment.--Section 4(f)(2) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended 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--''.
    (d) Activities Limitations.--Section 4(f)(2) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended by striking 
subparagraph (B) and inserting the following:
                    ``(B) any bank subsidiary of such company engages 
                in any activity in which the bank was not lawfully 
                engaged as of March 5, 1987;
                    ``(C) any bank subsidiary of such company that--
                            ``(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 (and, for purposes of this 
                        clause, loans made in the ordinary course of a 
                        credit card operation shall not be treated as 
                        commercial loans); or
                    ``(D) 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.

    (a) In General.--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.''.
    (b) Technical and Conforming Amendment.--Section 4(f)(2) of the 
Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended by 
striking ``Paragraph (1) shall cease to apply to any company described 
in such paragraph if--'' and inserting ``A company described in 
paragraph (1) shall no longer qualify for the exemption provided under 
such paragraph if--''.

SEC. 118. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN BANKS.

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

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

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

SEC. 119. FEDERAL HOME LOAN BANK GOVERNANCE AMENDMENTS.

    The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is 
amended--
            (1) in section 7(i) (12 U.S.C. 1427(i)), by striking ``, 
        subject to the approval of the board'';
            (2) in section 12(a) (12 U.S.C. 1432(a))--
                    (A) by striking ``, but, except'' and all that 
                follows through ``ten years'';
                    (B) by striking ``and by its board of directors'' 
                and all that follows through ``enjoyed subject to the 
                approval of the Board'' and inserting ``and, by its 
                board of directors, to prescribe, amend, and repeal 
                bylaws governing the manner in which its affairs may be 
                administered, consistent with this Act''; and
                    (C) by adding at the end the following: ``A Federal 
                home loan bank shall not be required to submit to the 
                board of directors of the bank for its approval, budget 
                or business plans, including annual operating and 
                capital budgets, strategic plans, or business plans.'';
            (3) in section 9 (12 U.S.C. 1429)--
                    (A) in the second sentence, by striking ``with the 
                approval of the Board''; and
                    (B) in the third sentence, by striking ``, subject 
                to the approval of the Board,'';
            (4) in section 10(a)(5) (12 U.S.C. 1430(a)(5))--
                    (A) by striking ``and the Board''; and
                    (B) by striking ``by the Board'' and inserting ``by 
                the Federal home loan bank''.
            (5) in section 10(c) (12 U.S.C. 1430(c)), by striking 
        ``Board'' and inserting ``Federal home loan bank'';
            (6) in section 10(d) (12 U.S.C. 1430(d))--
                    (A) by striking ``and the approval of the Board''; 
                and
                    (B) by striking ``Subject to the approval of the 
                Board, any'' and inserting ``Any''; and
            (7) in section 16(a) (12 U.S.C. 1436(a)), by striking ``, 
        and then only with the approval of the Federal Housing Finance 
        Board''.

SEC. 120. COLLATERALIZATION OF ADVANCES TO MEMBERS.

    Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 1430(a)) 
is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Fully disbursed, whole first mortgages on improved 
        residential property that are not more than 90 days delinquent, 
        mortgages on improved residential property insured or 
        guaranteed by the United States Government or any agency 
        thereof, or securities representing a whole interest in such 
        mortgages.''; and
            (2) in paragraph (4), by striking ``If an advance'' and all 
        that follows through ``is appropriate.''.

           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. ACCEPTANCE OF BROKERED DEPOSITS.

    Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) 
is amended--
            (1) by striking subsections (e) and (h);
            (2) by redesignating subsections (f) through (g) as 
        subsections (e) through (f), respectively;
            (3) in subsection (f), as redesignated, by striking 
        paragraph (3) and redesignating paragraph (4) as paragraph (3); 
        and
            (4) by adding at the end the following new subsection:
    ``(g) Deposit Solicitations Restricted.--
            ``(1) In general.--An insured depository institution may 
        not solicit deposits by offering rates of interest that are 
        significantly higher than the national rate of interest on 
        insured deposits, as established by the Corporation, if--
                    ``(A) the institution is undercapitalized or 
                adequately capitalized, as those terms are defined in 
                section 38; or
                    ``(B) the Corporation has been appointed 
                conservator for the institution.
            ``(2) Exclusion.--Paragraph (1) does not apply to an 
        insured depository institution that is well capitalized, as 
        defined in section 38.''.

SEC. 203. 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. 204. ELIMINATE UNNECESSARY RESTRICTIONS ON PRODUCT MARKETING.

    Section 106(b) of the Bank Holding Company Act Amendments of 1970 
(12 U.S.C. 1972) is amended--
            (1) by striking paragraph (1);
            (2) in paragraph (2)--
                    (A) by striking ``(2)''; and
                    (B) by redesignating subparagraphs (A) through (I) 
                as paragraphs (1) through (9), respectively;
            (3) in paragraph (6), as redesignated--
                    (A) by redesignating clauses (i) through (ix) as 
                subparagraphs (A) through (I), respectively;
                    (B) by striking ``clause (i)'' each place it 
                appears and inserting ``subparagraph (A)'';
                    (C) in subparagraph (B), as redesignated--
                            (i) by redesignating subclauses (I) and 
                        (II) as clauses (i) and (ii), respectively;
                            (ii) by striking ``(aa)'' each place it 
                        appears and inserting ``(I)'';
                            (iii) by striking ``(bb)'' each place it 
                        appears and inserting ``(II)''; and
                            (iv) by striking ``(cc)'' each place it 
                        appears and inserting ``(III)'';
                    (D) in subparagraph (C), as redesignated--
                            (i) by striking ``clauses (i) and (ii)'' 
                        and inserting ``subparagraphs (A) and (B)'';
                            (ii) by redesignating subclauses (I) and 
                        (II) as clauses (i) and (ii), respectively;
                            (iii) in clause (i), as redesignated, by 
                        redesignating items (aa) through (cc) as 
                        subclauses (I) through (III), respectively; and
                            (iv) by striking ``clause (iv)'' and 
                        inserting ``subparagraph (D)'';
                    (E) in subparagraph (D), as redesignated--
                            (i) by striking ``clause (iii)'' each place 
                        it appears and inserting ``subparagraph (C)'';
                            (ii) by redesignating subclauses (I) and 
                        (II) as clauses (i) and (ii), respectively;
                            (iii) by striking ``(aa)'' and inserting 
                        ``(I)''; and
                            (iv) by striking ``(bb)'' and inserting 
                        ``(II)''; and
                    (F) in subparagraph (E), as redesignated--
                            (i) by striking ``(ii) or (iii)'' and 
                        inserting ``(B), or (C)''; and
                            (ii) by redesignating subclauses (I) 
                        through (III) as clauses (i) through (iii), 
                        respectively;
            (4) in paragraph (7), as redesignated--
                    (A) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively; and
                    (B) in subparagraph (A), as redesignated--
                            (i) by redesignating paragraphs (1) through 
                        (4) as clauses (i) through (iv), respectively;
                            (ii) by striking ``(a)'' each place it 
                        appears and inserting ``(I)'';
                            (iii) by striking ``(b)'' each place it 
                        appears and inserting ``(II)''; and
                            (iv) by striking ``(c)'' each place it 
                        appears and inserting ``(III)'';
            (5) by striking ``this paragraph'' each place it appears 
        and inserting ``this subsection''; and
            (6) by striking ``this subparagraph'' each place it appears 
        and inserting ``this paragraph''.

SEC. 205. 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. 206. AFFINITY GROUPS.

    (a) Definitions.--For purposes of this section--
            (1) 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 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 member organizations whose 
                principal business is providing settlement services; 
                and
            (2) the terms ``person'', ``settlement services'', and 
        ``thing of value'' have the meanings given those terms in 
        section 3 of the Real Estate Settlement Procedures Act of 1974 
        (12 U.S.C. 2602).
    (b) Marketing Modernization.--Notwithstanding any other provision 
of law, it shall not be unlawful to make a payment or otherwise 
transfer any thing of value to an affinity group for or in connection 
with an endorsement (written or oral), 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, if 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.

SEC. 207. FAIR DEBT COLLECTION PRACTICES.

    (a) Exemption for Communications Involving Legal Proceedings.--
Section 803 of the Fair Debt Collection Practices Act (15 U.S.C. 1692a) 
is amended--
            (1) in paragraph (2)--
                    (A) by striking ``communication' means the'' and 
                inserting the following: ``communication'--
                    ``(A) means the''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; and
                    ``(B) does not include communications made pursuant 
                to the Federal Rules of Civil Procedure, in the case of 
                a proceeding in a State court, the rules of civil 
                procedure available under the laws of that State, or a 
                nonjudicial foreclosure proceeding.''; and
            (2) in paragraph (5)--
                    (A) by striking ``debt' means any'' and inserting 
                the following: ``debt'--
                    ``(A) means any'';
                    (B) by striking the period at the end and inserting 
                the following: ``; and
                    ``(B) does not include a draft drawn on a bank for 
                a sum certain, payable on demand and signed by the 
                maker.''.
    (b) Collection Activity Following Initial Notice.--Section 809 of 
the Fair Debt Collection Practices Act (15 U.S.C. 1692(g)) is amended 
by adding at the end the following new subsection:
    ``(d) Continuation During Period.--Collection activities and 
communications may continue during the 30-day period described in 
subsection (a) unless the consumer requests the cessation of such 
activities.''.
    (c) Definition of ``Communication''.--Section 803 of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692a) is amended--
            (1) by striking ``title--'' and inserting ``title, the 
        following definitions shall apply:''; and
            (2) in paragraph (2)--
                    (A) by striking ``term `communication' means'' and 
                inserting ``term `communication'--
                    ``(A) means'';
                    (B) by striking the period at the end and inserting 
                ``; and
                    ``(B) does not include any communication made or 
                action taken to collect on loans made, insured, or 
                guaranteed under the Higher Education Act of 1965.''.

SEC. 208. 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. 209. 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 ``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 shall 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; and
                            ``(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. 210. 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. SCHEDULED MEETINGS OF AFFORDABLE HOUSING ADVISORY BOARD.

    Section 14(b)(6)(A) of the Resolution Trust Corporation Completion 
Act (12 U.S.C. 1831q note) is amended--
            (1) by striking ``4 times a year, or more frequently if 
        requested'' and inserting ``2 times a year, or as requested''; 
        and
            (2) by striking ``In each year'' and all that follows 
        through ``located.''.

SEC. 302. 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. 303. 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 
                postinsolvency 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. 304. REPEAL OF REPORTING REQUIREMENT ON DIFFERENCES IN ACCOUNTING 
              STANDARDS.

    Section 37 of the Federal Deposit Insurance Act (12 U.S.C. 1831n) 
is amended by striking subsection (c).

SEC. 305. 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 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 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--
                    ``(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), by striking ``restraint or 
                trade'' and inserting ``restraint of trade''.
            (2) Amendments to 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. 306. TERMINATION OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT 
              BOARD.

    (a) In General.--Effective 3 months after the date of enactment of 
this Act, the Thrift Depositor Protection Oversight Board established 
under section 21A of the Federal Home Loan Bank Act (hereafter in this 
section referred to as the ``Board'') is terminated.
    (b) Disposition of Affairs.--
            (1) In general.--Effective on the date of enactment of this 
        Act, the Chairman of the Board (or the designee of the 
        Chairman) may exercise on behalf of the Board any power of the 
        Board necessary to settle and conclude the affairs of the 
        Board.
            (2) Availability of funds.--Funds available to the Board 
        shall be available to the Chairman of the Board to pay expenses 
        incurred in carrying out paragraph (1).
    (c) Savings Provision.--
            (1) Existing rights, duties, and obligations not 
        affected.--Nothing in this Act affects the validity of any 
        right, duty, or obligation of the United States, the Board, the 
        Resolution Trust Corporation, or any other person, that--
                    (A) arises under or pursuant to the Federal Home 
                Loan Bank Act, or any other provision of law applicable 
                with respect to the Board; and
                    (B) existed on the day before the effective date of 
                the termination of the Board under this Act.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Board with respect to any function 
        of the Board shall abate by reason of the enactment of this 
        Act.
            (3) Liabilities.--All liabilities arising out of the 
        operation of the Board during the period beginning on August 9, 
        1989, and ending on the date that is 3 months after the date of 
        enactment of this Act shall remain the direct liabilities of 
        the United States. The Secretary of the Treasury shall not be 
        substituted for the Board as a party to any such action or 
        proceeding.
            (4) Continuations of orders, resolutions, determinations, 
        and regulations pertaining to the resolution funding 
        corporation.--
                    (A) In general.--Each order, resolution, 
                determination, and regulation regarding the Resolution 
                Funding Corporation shall continue in effect according 
                to its terms until modified, terminated, set aside, or 
                superseded in accordance with applicable law, if such 
                order, resolution, determination, or regulation--
                            (i) was issued, made, and prescribed, or 
                        allowed to become effective by the Board or by 
                        a court of competent jurisdiction, in the 
                        performance of functions transferred by this 
                        Act; and
                            (ii) is in effect on the date that is 3 
                        months after the date of enactment of this Act.
                    (B) Enforceability.--All orders, resolutions, 
                determinations, and regulations pertaining to the 
                Resolution Funding Corporation are enforceable by and 
                against--
                            (i) the United States prior to the 
                        effective date of the transfer of 
                        responsibilities to the Secretary of the 
                        Treasury under this Act; and
                            (ii) the Secretary of the Treasury on and 
                        after the effective date of the transfer of 
                        responsibilities to the Secretary of the 
                        Treasury under this Act.
    (d) Transfer of Certain Resolution Funding Corporation 
Responsibilities to Secretary of Treasury.--Effective 3 months after 
the date of enactment of this Act, the authorities and duties of the 
Board under sections 21A(a)(6)(I) and 21B of the Federal Home Loan Bank 
Act are transferred to the Secretary of the Treasury (or the designee 
of the Secretary).
    (e) Membership of the Affordable Housing Advisory Board.--Effective 
on the date of enactment of this Act, section 14(b)(2) of the 
Resolution Trust Corporation Completion Act (12 U.S.C. 1831q note) is 
amended by striking subparagraph (C) and redesignating subparagraphs 
(D) and (E) as subparagraphs (C) and (D), respectively.

                  TITLE IV--DISCLOSURE SIMPLIFICATION

SEC. 401. ALTERNATIVE COMPLIANCE METHOD FOR APR DISCLOSURE.

    Section 127A(a)(2)(G) of the Truth in Lending Act (15 U.S.C. 
1637a(a)(2)(G)) is amended by inserting before the semicolon ``or, at 
the option of the creditor, a statement that the periodic payments may 
increase or decrease substantially''.

SEC. 402. ALTERNATIVE COMPLIANCE METHODS FOR ADVERTISING CREDIT TERMS.

    (a) Downpayment Amounts.--Section 144(d) of the Truth in Lending 
Act (15 U.S.C. 1664(d)) is amended--
            (1) by striking ``or the number of installments or the 
        period of repayment, then''; and
            (2) by inserting ``or'' before ``the dollar''.
    (b) Alternative Disclosures.--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 
        with respect to an open-end credit plan, the simple interest 
        rate or the periodic rate in addition to the annual percentage 
        rate;
            ``(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.''.

                         TITLE V--MISCELLANEOUS

SEC. 501. 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. 502. CONSISTENT COVERAGE FOR INDIVIDUALS ENROLLED IN A HEALTH PLAN 
              ADMINISTERED BY THE FEDERAL BANKING AGENCIES.

    (a) Enrollment in Chapter 89 Plan.--For purposes of chapter 89 of 
title 5, United States Code, any period of enrollment shall be deemed 
to be a period of enrollment in a health benefits plan under chapter 89 
of such title, if such enrollment is--
            (1) in a health benefits plan administered by the Federal 
        Deposit Insurance Corporation before the termination of such 
        plan on January 3, 1998; or
            (2) subject to subsection (c), in a health benefits plan 
        (not under chapter 89 of such title) with respect to which the 
        eligibility of any employees or retired employees of the Board 
        of Governors of the Federal Reserve System terminates on 
        January 3, 1998.
    (b) Enrollment; Continued Coverage.--
            (1) Enrollment.--Subject to subsection (c), any individual 
        who, on January 3, 1998, is enrolled in a health benefits plan 
        described in paragraph (1) or (2) of subsection (a) may enroll 
        in an approved health benefits plan under chapter 89 of title 
        5, United States Code, either as an individual or for self and 
        family, if, after taking into account the provisions of 
        subsection (a), such individual--
                    (A) meets the requirements of that chapter 89 for 
                eligibility to become so enrolled as an employee, 
                annuitant, or former spouse (within the meaning of that 
                chapter); or
                    (B) would meet the requirements of that chapter 89 
                if, to the extent such requirements involve either 
                retirement system under such title 5, such individual 
                satisfies similar requirements or provisions of the 
                Retirement Plan for Employees of the Federal Reserve 
                System.
            (2) Determinations.--Any determination under paragraph 
        (1)(B) shall be made under guidelines established by the Office 
        of Personnel Management in consultation with the Board of 
        Governors of the Federal Reserve System.
            (3) Continued coverage.--Subject to subsection (c), any 
        individual who, on January 3, 1998, is entitled to continued 
        coverage under a health benefits plan described in paragraph 
        (1) or (2) of subsection (a) shall be deemed to be entitled to 
        continued coverage under section 8905a of title 5, United 
        States Code, but only for the same remaining period as would 
        have been allowable under the health benefits plan in which 
        such individual was enrolled on January 3, 1998, if--
                    (A) the individual had remained enrolled in that 
                plan; and
                    (B) that plan did not terminate, or the eligibility 
                of such individual with respect to that plan did not 
                terminate, as described in subsection (a).
            (4) Comparable treatment.--Subject to subsection (c), any 
        individual (other than an individual under paragraph (3)) who, 
        on January 3, 1998, is covered under a health benefits plan 
        described in paragraph (1) or (2) of subsection (a) as an 
        unmarried dependent child, but who does not then qualify for 
        coverage under chapter 89 of title 5, United States Code, as a 
        family member (within the meaning of that chapter) shall be 
        deemed to be entitled to continued coverage under section 8905a 
        of that title, to the same extent and in the same manner as if 
        such individual had, on January 3, 1998, ceased to meet the 
        requirements for being considered an unmarried dependent child 
        of an enrollee under such chapter.
            (5) Effective date.--Coverage under chapter 89 of title 5, 
        United States Code, pursuant to an enrollment under this 
        section shall become effective on January 4, 1998.
    (c) Eligibility for FEHBP Limited to Individuals Losing Eligibility 
Under Former Health Plan.--Nothing in subsection (a)(2) or any 
paragraph of subsection (b) (to the extent that paragraph (2) relates 
to the plan described in subsection (a)(2)) shall be considered to 
apply with respect to any individual whose eligibility for coverage 
under the plan does not involuntarily terminate on January 3, 1998.
    (d) Transfers to the Employees Health Benefits Fund.--The Federal 
Deposit Insurance Corporation and the Board of Governors of the Federal 
Reserve System shall transfer to the Employees Health Benefits Fund, 
under section 8909 of title 5, United States Code, amounts determined 
by the Director of the Office of Personnel Management, after 
consultation with the Federal Deposit Insurance Corporation and the 
Board of Governors of the Federal Reserve System, to be necessary to 
reimburse the Fund for the cost of providing benefits under this 
section not otherwise paid for by the individuals covered by this 
section. The amounts so transferred shall be held in the Fund and used 
by the Office of Personnel Management in addition to amounts available 
under section 8906(g)(1) of title 5, United States Code.
    (e) Administration and Regulations.--The Office of Personnel 
Management--
            (1) shall administer the provisions of this section to 
        provide for--
                    (A) a period of notice and open enrollment for 
                individuals affected by this section; and
                    (B) no lapse of health coverage for individuals who 
                enroll in a health benefits plan under chapter 89 of 
                title 5, United States Code, in accordance with this 
                section; and
            (2) may prescribe regulations to implement this section.

SEC. 503. 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.

                    TITLE VI--TECHNICAL CORRECTIONS

SEC. 601. 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 by striking 
``7(b)(2)(C)'' and inserting ``7(b)(2)(E)''.
    (b) Effective Date.--The amendment 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. 602. 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. 603. 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. 604. CONFORMING CHANGE TO THE INTERNATIONAL BANKING ACT.

    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.
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