I

106TH CONGRESS

1ST SESSION H. R. 1931

To require agreements entered into between depository institutions and private

parties relating to the Community Reinvestment Act of 1977 to be

made available to the public and the appropriate Federal banking agency,

to require each party to the agreement to regular report to such agency

any amount received from other parties, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 25, 1999

Mr. MCCOLLUM (for himself, Mr. ROYCE, Mr. BACHUS, and Mrs. ROUKEMA)

introduced the following bill; which was referred to the Committee on

Banking and Financial Services

A BILL

To require agreements entered into between depository institutions and private parties relating to the Community

Reinvestment Act of 1977 to be made available to the

public and the appropriate Federal banking agency, to

require each party to the agreement to regular report

to such agency any amount received from other parties,

and for other purposes.

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

2 This Act may be cited as the ‘‘CRA Sunshine Act

3 of 1999’’.

4 SEC. 2. CRA SUNSHINE REQUIREMENTS.

5 (a) DISCLOSURE AND REPORTING.—The Federal De6 posit Insurance Act (12 U.S.C. 1811 et seq.), is amended

7 by adding at the end the following new section:

8 ‘‘SEC. 45. CRA SUNSHINE REQUIREMENTS.

9 ‘‘(a) PUBLIC DISCLOSURE OF AGREEMENTS.—Any

10 agreement entered into by an insured depository institu11 tion or affiliate with a nongovernmental entity or person

12 made pursuant to or in connection with the Community

13 Reinvestment Act of 1977 involving funds or other re14 sources of such insured depository institution or affiliate

15 shall be, in its entirety, fully disclosed, and the full text

16 thereof made available to the appropriate Federal banking

17 agency with supervisory responsibility over the insured de18 pository institution and to the public and shall obligate

19 each party to comply with the provisions of this section.

20 ‘‘(b) ANNUAL REPORT OF ACTIVITY.—Each party to

21 the agreement shall report, as applicable, to the appro22 priate Federal banking agency with supervisory responsi23 bility over the insured depository institution, no less fre24 quently than once each year, such information as the Fed25 eral banking agency may, by regulation, require relating

26 to the following actions taken by the party pursuant to
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1 an agreement described in subsection (a) during the pre2 vious 12-month period:

3 ‘‘(1) Payments, fees, or loans made to any

4 party to the agreement or received from any party

5 to the agreement and the terms and conditions of

6 the same.

7 ‘‘(2) Aggregate data on loans, investments, and

8 services provided by each party in its community or

9 communities pursuant to the agreement.

10 ‘‘(3) Such other pertinent matters as deter11 mined by regulation by the appropriate Federal

12 banking agency with supervisory responsibility over

13 the insured depository institution.

14 The Federal banking agency shall ensure that the regula15 tions implementing this section do not impose an undue

16 burden on the parties and that proprietary and confiden17 tial information is protected.

18 ‘‘(c) EXISTING AGREEMENTS.—The requirements of

19 subsection (b) (1), (2), and (3) shall be deemed to be ful20 filled with respect to any agreement made prior to May

21 5, 1999.

22 ‘‘(d) SECONDARY AGREEMENTS.—Any agreement

23 made on or after May 5, 1999, pursuant to an agreement

24 described in subsection (a) shall be subject to the require25 ments of subsections (a) and (b).
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1 ‘‘(e) AGREEMENT DEFINED.—For purposes of this

2 section, the term ‘agreement’—

3 ‘‘(1) means any written contract, written ar4 rangement, or other written understanding with a

5 value in excess of $10,000 annually, or a group of

6 substantively related contracts with an aggregate

7 value of $10,000 annually, made pursuant to or in

8 connection with the Community Reinvestment Act of

9 1977, at least 1 party to which is an insured deposi10 tory institution or affiliate thereof, or entity owned

11 or controlled by an insured depository institution or

12 affiliate, whether organized on a profit or nonprofit

13 basis; and

14 ‘‘(2) does not include any specific contract or

15 commitment for a loan or extension of credit to indi16 viduals, businesses, farms, or other entities, where

17 the purpose of the loan or extension of credit does

18 not include any re-lending of the borrowed funds to

19 other parties.

20 ‘‘(d) VIOLATIONS.—Any violation of the provisions of

21 this section shall be considered a violation of this Act. If

22 the party to the agreement that is not an insured deposi23 tory institution or affiliate fails to comply with this sec24 tion, the agreement shall not be enforceable after being
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1 given notice and a reasonable period of time to perform

2 or comply.

3 ‘‘(e) LIMITATION.—No provision of this section shall

4 be construed as providing any authority upon any appro5 priate Federal banking agency to enforce the provisions

6 of the agreements that are subject to the requirements of

7 subsection (a).

8 ‘‘(f) REGULATIONS.—Each appropriate Federal

9 banking agency shall prescribe regulations requiring pro10 cedures reasonably designed to assure and monitor compli11 ance with the requirements of this section.’’.

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