In the Senate of the United States,
April 26 (legislative day, April 11), 1994.
Resolved, That the bill from the House of Representa-
tives (H.R. 3841) entitled ‘‘An Act to amend the Bank Hold-
ing Company Act of 1956, the Revised Statutes of the United
States, and the Federal Deposit Insurance Act to provide for
interstate banking and branching’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
TITLE I—INTERSTATE BANKING
AND BRANCHING
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Interstate Banking and
Branching Act of 1994’’.
SEC. 102. INTERSTATE BANKING.
(a) IN GENERAL.—Section 3(d) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(d)) is amended to
read as follows:
‘‘(d) STATE BOUNDARIES.—
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‘‘(1) APPROVALS AUTHORIZED.—
‘‘(A) ACQUISITION OF EXISTING BANKS.—
The Board may approve an application under
this section to permit a bank holding company
that is adequately capitalized and adequately
managed to acquire control of, or all or substan-
tially all of the assets of, an existing bank lo-
cated outside of the home State of such bank
holding company.
‘‘(B) EXISTING
BANKS.—For purposes of
this subsection, a bank that does not open for
business and that has been chartered solely for
the purpose of acquiring control of, or all or sub-
stantially all of the assets of, an existing bank
shall be deemed to have been in existence for the
same period of time as the bank to be acquired.
‘‘(C) COMMUNITY
REINVESTMENT
COMPLI-
ANCE.—In determining whether to approve an
application under subparagraph (A), the Board
shall consider the applicant’s record of compli-
ance with applicable Federal and State commu-
nity reinvestment laws.
‘‘(D) STATE LAW.—Subject to paragraphs
(2), (4), and (6), a transaction approved under
subparagraph (A) may occur without regard to
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whether such transaction is permitted under the
law of the State in which the bank to be acquired
is located.
‘‘(2) CONCENTRATION AND OTHER LIMITS.—The
Board may not approve an application under para-
graph (1)(A) if—
‘‘(A) the applicant controls, or upon com-
pletion of the acquisition would control, more
than 10 percent of the total deposits held by in-
sured depository institutions in the United
States, as determined under regulations of the
Board;
‘‘(B) the applicant controls, or upon com-
pletion of the acquisition would control, 25 per-
cent or more of the total deposits held by insured
depository institutions in the State in which the
bank to be acquired is located, as determined
under regulations of the Board, except that the
State bank supervisor may waive the applicabil-
ity of this clause on a case-by-case basis if such
waiver does not have the effect of discriminating
against out-of-State banks, out-of-State bank
holding companies, or subsidiaries thereof; or
‘‘(C) the acquisition would result in the ap-
plicant directly or indirectly controlling a bank
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that has been in existence for a shorter period of
time, if any, than is prescribed by the law of the
State in which such bank is located in effect on
the date on which the application is filed with
the Board, only if such State law—
‘‘(i) does not prescribe a period of more
than 5 years; and
‘‘(ii) does not have the effect of dis-
criminating among out-of-State banks, out-
of-State bank holding companies, or subsidi-
aries thereof. A State law in effect on the
date of enactment of the Interstate Banking
and Branching Act of 1994 that permits
bank holding companies from only a limited
number of States to acquire banks in exist-
ence for a specified length of time in that
State, shall be interpreted, under State and
Federal law, as permitting bank holding
companies from any State, to acquire a
bank in that State, under the terms and
conditions of such State law.
‘‘(3) EXCEPTION.—The Board may approve an
application under paragraph (1)(A), notwithstanding
any provision of paragraph (2), if such application
involves the acquisition of one or more banks in de-
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fault or in danger of default or with respect to which
the Federal Deposit Insurance Corporation provides
assistance under section 13(c) of the Federal Deposit
Insurance Act.
‘‘(4) NO EFFECT ON ANTITRUST LAWS.—Nothing
in this subsection affects Federal or State antitrust
laws that do not have the effect of discriminating
against out-of-State banks, out-of-State bank holding
companies, or subsidiaries thereof.
‘‘(5) NO EFFECT ON STATE TAX AUTHORITY.—No
provision of this Act shall be construed as affecting
the authority of any State or political subdivision of
any State to adopt, apply, and administer any tax
or method of taxation to any bank, bank holding com-
pany, or foreign bank or to any affiliate of any bank,
bank holding company, or foreign bank to the extent
that such tax or tax method is otherwise permissible
by or under the Constitution of the United States or
other Federal law.
‘‘(6) AFFECT ON STATE CONTINGENCY LAWS.—
Nothing in this subsection affects the applicability of
a State law that makes an acquisition of a bank con-
tingent upon a requirement to hold a portion of such
bank’s assets available for call by a State-sponsored
housing entity established pursuant to State law, if—
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‘‘(A) the State law does not have the effect of dis-
criminating against out-of-State banks, out-of-State
bank holding companies, or subsidiaries thereof;
‘‘(B) that State law was in effect as of the date
of enactment of the Interstate Banking and Branch-
ing Act of 1994;
‘‘(C) the Federal Deposit Insurance Corporation
has not determined that compliance with such State
law would result in an unacceptable risk to the ap-
propriate deposit insurance fund; and
‘‘(D) the appropriate Federal banking agency for
such institution has not found that compliance with
such State law would place the institution in an un-
safe or unsound condition.’’.
(b) TECHNICAL
AND CONFORMING AMENDMENTS.—
Section 2 of the Bank Holding Company Act of 1956 (12
U.S.C. 1841) is amended by adding at the end the following
new subsections:
‘‘(n) INCORPORATED DEFINITIONS.—For purposes of
this Act, the terms ‘insured depository institution’, ‘appro-
priate Federal banking agency’, ‘in default’, ‘in danger of
default’, and ‘State bank supervisor’ have the same mean-
ings as in section 3 of the Federal Deposit Insurance Act.
‘‘(o) OTHER DEFINITIONS.—For purposes of this
Act—
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the resulting bank may establish, acquire, or op-
erate additional branches at any location where
the resulting bank or a combined bank could
have established, acquired, or operated a branch
under the applicable Federal or State law as if
it had not been a party to such combination.
‘‘(B) INTRASTATE BRANCHING.—Except as
expressly provided in this subsection, nothing in
this subsection shall be deemed to amend, repeal,
or preempt, either expressly or by implication,
any Federal or State law relating to the estab-
lishment, acquisition, or operation of intrastate
branches by national or State banks.
‘‘(C) CONDITIONS.—Prior to granting ap-
proval to effect a combination under paragraph
(1), the appropriate Federal banking agency
shall consider each bank’s rating under the Com-
munity Reinvestment Act of 1977 and the com-
ments of the appropriate State bank regulatory
authorities regarding each bank’s compliance
with applicable State community reinvestment
laws.
‘‘(D) IMPOSITION OF SHARES TAX BY HOST
STATES.—If any branch of an out-of-State bank
established pursuant to paragraph (1) or sub-
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paragraph (A) of this paragraph continues in
operation, a proportionate amount of the value
of the shares of the out-of-State bank may be sub-
ject to any bank shares tax levied or imposed by
any host State or political subdivision thereof
that imposes such tax based upon a method
adopted by the host State, which could include
allocation and apportionment.
‘‘(4) ACTIVITIES OF BRANCHES.—A State bank
that establishes one or more branches in accordance
with paragraph (1) or paragraph (3)(A) may not
conduct any activity at any branch located in a host
State that is not permitted for banks chartered by
such host State.
‘‘(5) APPLICABLE LAW.—
‘‘(A) IN GENERAL.—
‘‘(i) NATIONAL BANK BRANCHES.—Any
branch of a national bank that is estab-
lished as the result of a combination in ac-
cordance with paragraph (1) or paragraph
(3)(A) shall be subject to the laws of the host
State, including those that govern intrastate
branching, consumer protection, fair lend-
ing, and community reinvestment, as if it
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were a branch of a national bank having its
main office in that State.
‘‘(ii) STATE
BANK
BRANCHES.—Any
branch of a State bank that is established as
the result of a combination in accordance
with paragraph (1) or paragraph (3)(A)
shall be subject to the laws of the host State,
including those that govern intrastate
branching, consumer protection, fair lend-
ing, and community reinvestment, as if it
were a branch of a bank chartered under the
laws of such State.
‘‘(B) FILING REQUIREMENT.—A host State
may require any bank located in another State
that wishes to establish a branch within the host
State as a result of a combination authorized by
paragraph (1) to comply with filing require-
ments that—
‘‘(i) are not discriminatory in effect;
and
‘‘(ii) are similar in their effect to and
are subject to similar sanctions as those
that are imposed on a corporation having
its main office in another State that is not
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engaged in the business of banking and that
seeks to engage in business in the host State.
‘‘(6) STATE ELECTION TO PROHIBIT INTERSTATE
COMBINATIONS.—
‘‘(A) IN GENERAL.—Paragraph (1) does not
apply to a bank holding company located in a
State that has enacted a law after the date of en-
actment of this subsection and prior to June 1,
1997, that applies equally to all out-of-State
banks, and that expressly prohibits interstate
combinations involving a bank located in the
State, as authorized under paragraph (1).
‘‘(B) EFFECT OF PROHIBITION.—A bank lo-
cated in a State that has in effect a prohibition
described in subparagraph (A) may not be com-
bined, and shall have no authority to be com-
bined under paragraph (1), with a bank located
outside of that State.
‘‘(C) EFFECT OF STATE ELECTION.—A law
enacted by a State pursuant to subparagraph
(A) or paragraph (8) shall have no effect on com-
binations that were approved prior to the effec-
tive date or the date of enactment of such law,
whichever is later.
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‘‘(7) STATE ELECTION TO PERMIT INTERSTATE
COMBINATIONS.—A combination under paragraph (1)
may be undertaken prior to June 1, 1997, if each of
the States in which 1 or more banks that are to be
combined into a single, resulting bank is located has
in effect on the date on which the combination is ap-
proved a law that applies equally to all out-of-State
banks and that expressly permits interstate combina-
tions by national and State-chartered banks. A State
described in the preceding sentence may impose con-
ditions on the branch of the resulting bank located in
that State if—
‘‘(A) the conditions do not have the effect of
discriminating against out-of-State banks, out-
of-State bank holding companies, or subsidiaries
thereof (other than on the basis of a reciprocal
treatment requirement);
‘‘(B) the imposition of the conditions is not
preempted by Federal law; and
‘‘(C) the conditions do not apply or require
performance beyond June 1, 1997.
‘‘(8) COMBINATIONS
AFTER
JUNE
1, 1997.—A
State described in paragraphs (6) or (7) may elect at
any later time to permit or withdraw permission for
interstate combinations authorized under paragraph
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(1) if such State enacts a law that applies equally to
all out-of-State banks and that expressly permits (or
withdraws permission for, as the case may be) inter-
state combinations by all national and State banks.
‘‘(9) LIMITATIONS.—Nothing in this subsection—
‘‘(A) affects Federal or State antitrust laws
that do not have the effect of discriminating
against out-of-State banks, out-of-State bank
holding companies, or subsidiaries thereof; or
‘‘(B) affects section 5197 of the Revised
Statutes or section 27 of the Federal Deposit In-
surance Act.
‘‘(10) RESERVATION
OF
CERTAIN
RIGHTS
TO
STATES.—Nothing in this subsection limits in any
way the right of a State to—
‘‘(A) determine the authority of State banks
chartered in that State to acquire, establish, and
maintain branches; or
‘‘(B) supervise, regulate, and examine State
banks chartered by that State.
‘‘(11) NO EFFECT ON STATE TAX AUTHORITY.—
No provision of this Act shall be construed as affect-
ing the authority of any State or political subdivision
of any State to adopt, apply, and administer any tax
or method of taxation to any bank, bank holding com-
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pany, or foreign bank or to any affiliate of any bank,
bank holding company, or foreign bank to the extent
that such tax or tax method is otherwise permissible
by or under the Constitution of the United States or
other Federal law.
‘‘(12) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) the term ‘combined bank’ means any
bank participating in a combination under
paragraph (1), other than the resulting bank;
‘‘(B) the term ‘host State’ means the State
in which a bank establishes or maintains a
branch other than the State in which the bank
is located and engaged in the business of bank-
ing;
‘‘(C) a bank shall be deemed to be ‘lo-
cated’—
‘‘(i) in the case of a State bank, in the
State in which it was chartered; and
‘‘(ii) in the case of a national bank, in
the State in which its main office is located;
‘‘(D) the term ‘resulting bank’ means a
banking subsidiary of a bank holding company
that has resulted from a transaction effected
under paragraph (1) involving the combination
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of 2 or more subsidiary banks of the bank hold-
ing company located in 2 or more States; and
‘‘(E) the term ‘State bank’ has the same
meaning as in section 3 of the Federal Deposit
Insurance Act.’’.
(b) CONFORMING AMENDMENT
TO
THE NATIONAL
BANK ACT.—Section 5155(c) of the Revised Statutes (12
U.S.C. 36(c)) is amended in the first sentence, by striking
‘‘A national banking association’’ and inserting ‘‘Except as
provided in section 3(h) of the Bank Holding Company Act
of 1956, a national banking association’’.
SEC. 104. AMENDMENTS TO FEDERAL DEPOSIT INSURANCE
ACT AND THE ACT ENTITLED ‘‘AN ACT TO
PROVIDE FOR THE CONSOLIDATION OF NA-
TIONAL BANKING ASSOCIATIONS’’.
(a) FEDERAL DEPOSIT INSURANCE ACT AMEND-
MENTS.—Section 18(d) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(d)) is amended by adding at the end
the following new paragraphs:
‘‘(3) COORDINATION OF EXAMINATION AUTHOR-
ITY.—
‘‘(A) IN GENERAL.—The appropriate State
official of a host State may examine a branch
operated in such State of a bank chartered by a
State other than that host State that resulted
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from a combination effected under section 3(h) of
the Bank Holding Company Act of 1956—
‘‘(i) for the purpose of determining
compliance with host State laws, including
those that govern banking, taxation, com-
munity 
reinvestment, 
fair 
lending,
consumer protection, and permissible activi-
ties; and
‘‘(ii) to ensure that the activities of the
branch are not conducted in an unsafe or
unsound manner.
‘‘(B) ENFORCEMENT.—In the event that the
State bank supervisor of the host State deter-
mines that there is a violation of the law of the
host State concerning the activities being con-
ducted by a branch described in subparagraph
(A), the State bank supervisor of the host State
may undertake such enforcement actions and
proceedings as would be permitted under the law
of the host State as if the branch were a bank
chartered by that host State.
‘‘(C) 
COOPERATIVE
AGREEMENT.—The
State bank supervisors from 2 or more States
may enter into cooperative agreements to facili-
tate State regulatory supervision of State-char-
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tered banks, including cooperative agreements re-
lating to the coordination of examinations and
joint participation in examinations.
‘‘(D) FEDERAL REGULATORY AUTHORITY.—
Nothing in this subsection limits in any way the
authority of the appropriate Federal banking
agency to examine or to take any enforcement
actions or proceedings against any bank or
branch of a bank for which the agency is the ap-
propriate Federal banking agency.
‘‘(E) REVIEW
OF
INTERSTATE
AGREE-
MENTS.—If the appropriate Federal banking
agency determines that the States have reached
an agreement under subparagraph (C) that ade-
quately protects the deposit insurance funds, the
appropriate Federal banking agency may defer
to State examinations of branches operated in
the host State by out-of-State banks.
‘‘(4) NO EFFECT ON STATE TAX AUTHORITY.—No
provision of this Act shall be construed as affecting
the authority of any State or political subdivision of
any State to adopt, apply, and administer any tax
or method of taxation to any bank, bank holding com-
pany, or foreign bank or to any affiliate of any bank,
bank holding company, or foreign bank to the extent
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that such tax or tax method is otherwise permissible
by or under the Constitution of the United States or
other Federal law.’’.
(b) NATIONAL BANKING ASSOCIATIONS.—The Act enti-
tled ‘‘An Act to provide for the consolidation of national
banking associations’’, approved November 7, 1918 (12
U.S.C. 215 et seq.) is amended—
(1) in the first sentence of subsection (a) of the
first section, by inserting ‘‘, or in any State in which
a bank is authorized to engage in an interstate con-
solidation pursuant to section 3(h) of the Bank Hold-
ing Company Act of 1956,’’ after ‘‘located in the same
State’’;
(2) by inserting before the period at the end of
subsection (d) of the first section ‘‘, except that the ap-
plicability of State law to an interstate consolidation
undertaken in accordance with section 3(h) of the
Bank Holding Company Act of 1956 is determined in
accordance with the provisions of that section’’;
(3) by adding at the end of the first section the
following new subsection:
‘‘(h) An interstate consolidation—
‘‘(1) shall be undertaken under this section pur-
suant to the procedures, restrictions, and require-
ments—
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‘‘(A) set forth in section 3(h) of the Bank
Holding Company Act of 1956 as if such inter-
state consolidation were a combination under
that section; and
‘‘(B) set forth in this section, to the extent
that such procedures, restrictions, and require-
ments are not inconsistent with those of section
3(h) of the Bank Holding Company Act of 1956;
and
‘‘(2) involving banks that are not affiliated (as
such term is defined in section 2 of the Bank Holding
Company Act of 1956) shall meet the requirements of
section 3(d) of the Bank Holding Company Act of
1956, as determined by the Comptroller of the Cur-
rency, as if such consolidation were an acquisition
under that section 3(d).’’;
(4) in the first sentence of section 2(a)—
(A) by striking ‘‘under an agreement not
inconsistent with this Act,’’; and
(B) by inserting ‘‘or within any State in
which a bank is authorized to engage in an
interstate merger pursuant to section 3(h) of the
Bank Holding Company Act of 1956,’’ after ‘‘lo-
cated within the same State,’’;
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(5) in the sixth sentence of section 2(d) by insert-
ing before the period ‘‘, except that the applicability
of State law to a merger undertaken in accordance
with section 3(h) of the Bank Holding Company Act
of 1956 is determined in accordance with the provi-
sions of that section’’;
(6) in section 2, by adding at the end the follow-
ing new subsection:
‘‘(h)(1) An interstate merger—
‘‘(A) shall be undertaken under this section
pursuant to the procedures, restrictions, and re-
quirements—
‘‘(i) set forth in section 3(h) of the
Bank Holding Company Act of 1956 as if
such merger were a combination under that
section; and
‘‘(ii) set forth in this section, to the ex-
tent that such procedures, restrictions, and
requirements are not inconsistent with those
of section 3(h) of the Bank Holding Com-
pany Act of 1956; and
‘‘(B) involving banks that are not affiliated
(as such term is defined in section 2 of the Bank
Holding Company Act of 1956) shall meet the
requirements of section 3(d) of the Bank Holding
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Company Act of 1956, as determined by the
Comptroller of the Currency, as if such merger
were an acquisition under that section 3(d).
‘‘(2) Paragraph (1) shall apply to a State mem-
ber bank involved in an interstate merger on the same
terms and conditions and subject to the same proce-
dures, restrictions, and requirements as are applicable
to the consolidation of branches by a national bank-
ing association involved in an interstate merger.’’;
and
(7) in paragraph (4) of section 3, by inserting
‘‘or within any State in which a bank is authorized
to engage in an interstate consolidation, merger, or
other transaction pursuant to section 3(h) of the Bank
Holding Company Act of 1956,’’ after ‘‘within the
same State,’’.
SEC. 105. ACQUISITION OF INTERSTATE BRANCHES BY NA-
TIONAL AND STATE BANKS.
(a) ACQUISITION
OF
INTERSTATE
BRANCHES
BY
STATE BANKS.—Section 18(d) of the Federal Deposit In-
surance Act (12 U.S.C. 1828(d)) is amended by adding at
the end the following new paragraphs:
‘‘(4) 
INTERSTATE
BRANCHING
BY
STATE
BANKS.—
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‘‘(A) IN GENERAL.—Beginning on the date
of enactment of this paragraph, notwithstanding
any other provision of law, a host State may, ex-
pressly by statute and not merely by implica-
tion, permit all out-of-State banks to acquire or
establish a branch in the host State on a basis
that does not have the effect of discriminating
against out-of-State banks, out-of-State bank
holding companies, or subsidiaries thereof. A
branch established under this paragraph shall be
operated in accordance with the procedures, re-
strictions, and requirements set forth in section
3(h) of the Bank Holding Company Act of 1956,
and the provisions of that section shall apply to
the branch as if the branch resulted from a com-
bination effected in accordance with paragraph
(1) of that section 3(h).
‘‘(B) 
FDIC 
APPROVAL.—A 
State
nonmember bank may acquire, establish, and op-
erate a branch under this paragraph only if the
bank is adequately capitalized and adequately
managed and with the prior consent of the Cor-
poration.
‘‘(5) DEFINITIONS.—For purposes of this sub-
section—
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‘‘(A) the term ‘host State’ means a State in
which a bank acquires, establishes, or maintains
a branch, other than the State in which the bank
is located and engaged in the business of bank-
ing;
‘‘(B) a bank shall be deemed to be ‘lo-
cated’—
‘‘(i) in the case of a State bank, in the
State in which it was chartered; and
‘‘(ii) in the case of a national bank, in
the State in which its main office is located;
and
‘‘(C) the term ‘adequately capitalized’ has
the same meaning as in section 38.’’.
(b) INTERSTATE BRANCHING BY NATIONAL BANKS.—
Section 5155 of the Revised Statutes (12 U.S.C. 36) is
amended—
(1) by redesignating subsections (d) through (h)
as subsections (e) through (i), respectively; and
(2) by inserting after subsection (c) the following
new subsection:
‘‘(d) INTERSTATE BRANCHING BY NATIONAL BANKS.—
‘‘(1) APPROVALS
AUTHORIZED.—Notwithstand-
ing any other provision of law, the Comptroller of the
Currency may approve an application under this
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subsection for a national bank that is adequately cap-
italized and adequately managed to acquire or estab-
lish a branch in a host State if the host State ex-
pressly permits, pursuant to section 18(d)(4) of the
Federal Deposit Insurance Act, all out-of-State banks
to establish such branches. Each such branch shall be
operated in accordance with the procedures, restric-
tions, and requirements set forth in section 3(h) of the
Bank Holding Company Act of 1956, and the provi-
sions of that section shall apply to the branch as if
the branch resulted from a combination effected in ac-
cordance with paragraph (1) of that section 3(h).
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) the term ‘host State’ means the State
in which a national bank establishes a branch
under paragraph (1); and
‘‘(B) the term ‘adequately capitalized’ has
the same meaning as in section 38 of the Federal
Deposit Insurance Act.’’.
SEC. 106. COMMUNITY REINVESTMENT ACT EVALUATION OF
BANKS WITH INTERSTATE BRANCHES.
(a) IN GENERAL.—Section 807 of the Community Re-
investment Act of 1977 (12 U.S.C. 2906) is amended by
adding at the end the following new subsections:
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‘‘(d) INSTITUTIONS WITH INTERSTATE BRANCHES.—
‘‘(1) STATE-BY-STATE EVALUATION.—In the case
of a regulated financial institution that maintains
domestic branches in 2 or more States, the appro-
priate Federal financial supervisory agency shall
prepare—
‘‘(A) a written evaluation of the entire in-
stitution’s record of performance under this title,
as required by subsections (a), (b), and (c); and
‘‘(B) for each State in which the institution
maintains 1 or more domestic branches, a sepa-
rate written evaluation of the institution’s record
of performance within such State under this
title, as required by subsections (a), (b), and (c).
‘‘(2) MULTISTATE
METROPOLITAN
AREAS.—In
the case of a regulated financial institution that
maintains domestic branches in 2 or more States
within a multistate metropolitan area, the appro-
priate Federal financial supervisory agency shall pre-
pare a separate written evaluation of the institution’s
record of performance within such metropolitan area
under this title, as required by subsections (a), (b),
and (c). If the agency prepares a written evaluation
pursuant to this paragraph, the scope of the written
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evaluation required under paragraph (1)(B) shall be
adjusted accordingly.
‘‘(3) CONTENT OF STATE LEVEL EVALUATION.—
A written evaluation prepared pursuant to paragraph
(1)(B) shall—
‘‘(A) present the information required by
subparagraphs (A) and (B) of subsection (b)(1)
separately for each metropolitan area in which
the institution maintains 1 or more domestic
branch offices and separately for the remainder
of the nonmetropolitan area of the State if the
institution maintains 1 or more domestic branch
offices in such nonmetropolitan area; and
‘‘(B) describe how the Federal financial su-
pervisory agency has performed the examination
of the institution, including a list of the individ-
ual branches examined.
‘‘(e) DEFINITIONS.—For purposes of this section the
following definitions shall apply:
‘‘(1) DOMESTIC
BRANCH.—The term ‘domestic
branch’ means any branch office or other facility of
a regulated financial institution that accepts deposits,
located in any State.
‘‘(2) METROPOLITAN
AREA.—The term ‘metro-
politan area’ means any primary metropolitan
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statistical area, metropolitan statistical area, or con-
solidated metropolitan statistical area, as defined by
the Director of the Office of Management and Budget,
with a population of 250,000 or more, and any other
area identified by the appropriate Federal financial
supervisory agency.
‘‘(3) STATE.—The term ‘State’ has the same
meaning as in section 3 of the Federal Deposit Insur-
ance Act.’’.
(b) SEPARATE PRESENTATION.—Section 807(b)(1) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2906(b)(1)) is amended—
(1) by redesignating subparagraphs (A) through
(C) as clauses (i) through (iii), respectively;
(2) by striking ‘‘The public’’ and inserting the
following:
‘‘(A) CONTENTS
OF
WRITTEN
EVALUA-
TION.—The public’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) METROPOLITAN AREA DISTINCTIONS.—
The information required by clauses (i) and (ii)
of subparagraph (A) shall be presented sepa-
rately for each metropolitan area in which a reg-
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ulated depository institution maintains one or
more domestic branch offices.’’.
SEC. 107. FLEXIBILITY IN CHOOSING BOARDS OF DIREC-
TORS.
Section 5146 of the Revised Statutes (12 U.S.C. 72)
is amended in the first sentence by striking ‘‘two-thirds’’
and inserting ‘‘a majority’’.
SEC. 108. GAO REPORT ON DATA COLLECTION UNDER
INTERSTATE BRANCHING.
(a) IN GENERAL.—The Comptroller General shall sub-
mit to the Congress, not later than 9 months after the date
of enactment of this Act, a report that—
(1) examines statutory and regulatory require-
ments for insured depository institutions to collect
and report deposit and lending data; and
(2) determines what modifications to such re-
quirements are needed, so that implementing the
interstate branching provisions contained in this Act
results in no material loss of information important
to regulatory or congressional oversight of insured de-
pository institutions.
(b) CONSULTATION.—The Comptroller General, in pre-
paring the report required by this section, shall consult with
individuals representing the appropriate Federal banking
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agencies, insured depository institutions, consumers, com-
munity groups, and other interested parties.
(c) DEFINITIONS.—For purposes of this section, the
terms ‘‘appropriate Federal banking agency’’ and ‘‘insured
depository institution’’ have the same meanings as in sec-
tion 3 of the Federal Deposit Insurance Act.
SEC. 109. MAXIMUM INTEREST RATE ON CERTAIN FmHA
LOANS.
(a) IN GENERAL.—Section 307(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1927(a)) is
amended—
(1) in paragraph (3)(A), by striking ‘‘Except’’
and inserting ‘‘Notwithstanding the provisions of the
constitution or laws of any State limiting the rate or
amount of interest that may be charged, taken, re-
ceived, or reserved, except’’; and
(2) in paragraph (5)—
(A) by striking ‘‘(5) The’’ and inserting
‘‘(5)(A) Except as provided in subparagraph
(B), the’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(B) In the case of a loan made under section 310B
as a guaranteed loan, subparagraph (A) shall apply not-
withstanding the provisions of the constitution or laws of
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any State limiting the rate or amount of interest that may
be charged, taken, received, or reserved.’’.
(b) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by sub-
section (a) shall apply to a loan made, insured, or
guaranteed under the Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.) in a State
on or after the date of enactment of this Act.
(2) STATE
OPTION.—Except as provided in
paragraph (3), the amendments made by subsection
(a) shall not apply to a loan made, insured, or guar-
anteed under the Consolidated Farm and Rural De-
velopment Act in a State after the date (that occurs
during the 3-year period beginning on the date of en-
actment of this Act) on which the State adopts a law
or certifies that the voters of the State have voted in
favor of a provision of the constitution or law of the
State that states that the State does not want the
amendments made by subsection (a) to apply with re-
spect to loans made, insured, or guaranteed under
such Act in the State.
(3) TRANSITIONAL
PERIOD.—In any case in
which a State takes an action described in paragraph
(2), the amendments made by subsection (a) shall
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continue to apply to a loan made, insured, or guar-
anteed under the Consolidated Farm and Rural De-
velopment Act in the State after the date the action
was taken pursuant to a commitment for the loan
that was entered into during the period beginning on
the date of enactment of this Act, and ending on the
date on which the State takes the action.
TITLE II—BANK AND THRIFT
STATUTE OF LIMITATIONS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Bank and Thrift
Statute of Limitations Clarification Act of 1994’’.
SEC. 202. AMENDMENT TO FEDERAL DEPOSIT INSURANCE
ACT.
Section 11(d)(14)(B)(i) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(d)(14)(B)(i)) is amended by in-
serting after ‘‘receiver’’ the following: ‘‘, regardless of wheth-
er the claim may have been barred under any otherwise
applicable statute of limitation at the date of such appoint-
ment, unless such claim was barred more than 5 years be-
fore the date of such appointment’’.
SEC. 203. APPLICABILITY.
The amendment made by section 202 shall apply to
all actions pending or brought by the Federal Deposit In-
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surance Corporation and the Resolution Trust Corporation
as conservator or receiver on or after August 9, 1989.
TITLE III—FINANCIAL SERVICES
SEC. 301. SHORT TITLE.
This title may be cited at the ‘‘National Commission
on Financial Services Act’’.
SEC. 302. ESTABLISHMENT OF NATIONAL COMMISSION ON
FINANCIAL SERVICES.
(a) ESTABLISHMENT.—There is established a commis-
sion to be known as the ‘‘National Commission on Finan-
cial Services’’ (hereafter in this title referred to as the
‘‘Commission’’).
(b) MEMBERSHIP OF THE COMMISSION.—
(1) COMPOSITION.—The Commission shall be
composed of 7 voting members and 3 nonvoting mem-
bers appointed as follows:
(A) Three voting members and 1 nonvoting
member to be appointed by the President.
(B) Two voting members and 1 nonvoting
member to be appointed jointly by the Majority
Leader of the Senate and the Speaker of the
House of Representatives.
(C) Two voting members and 1 nonvoting
member appointed jointly by the Minority Lead-
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er of the Senate and the Minority Leader of the
House of Representatives.
(2) QUALIFICATIONS.—
(A) VOTING MEMBERS.—
(i) IN GENERAL.—Voting members ap-
pointed pursuant to paragraph (1) shall be
appointed from among individuals who are
users of the financial services system, and
shall include representatives of business, ag-
riculture, and consumers.
(ii) PROHIBITION.—No voting member
of the Commission shall be an employee of
the Federal Government or any State gov-
ernment.
(B) 
NONVOTING
MEMBERS.—Nonvoting
members appointed pursuant to paragraph (1)
shall be appointed from among individuals who
are experts in finance or in the financial services
system.
(3) APPOINTMENT.—The appointment of the
members of the Commission shall be made not later
than June 30, 1994.
(4) TERMS.—Members shall be appointed for the
life of the Commission.
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(5) VACANCIES.—A vacancy in the Commission
shall not affect the powers of the Commission and
shall be filled in the same manner in which the origi-
nal appointment was made.
(6) CHAIRPERSON.—The President shall des-
ignate 1 of the voting members of the Commission to
serve as the chairperson of the Commission (hereafter
in this title referred to as the ‘‘Chairperson’’).
(7) INITIAL MEETING.—Not later than 30 days
after the date on which all members of the Commis-
sion have been appointed, the Commission shall hold
its first meeting.
(8) MEETINGS.—The Commission shall meet at
the call of the Chairperson.
(9) QUORUM.—A majority of the members of the
Commission shall constitute a quorum, but a lesser
number of members may hold hearings.
SEC. 303. DUTIES OF THE COMMISSION.
(a) STUDY.—
(1) IN GENERAL.—The Commission shall, after
consultation in accordance with paragraph (3), con-
duct a study of all matters relating to the strengths
and weaknesses of the United States financial services
system in meeting the needs of users of the system, in-
cluding all laws, regulations, and policies that govern
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the extent to which Federal laws and regulations,
in an efficient and cost-effective manner—
(i) achieve consumer protection objec-
tives;
(ii) promote competition and prevent
anticompetitive acts and practices or undue
concentration;
(iii) ensure that the financial services
are delivered in a nondiscriminatory and
cost-efficient manner; and
(iv) ensure access to the financial serv-
ices system for all potential users of the sys-
tem, regardless of where such users are lo-
cated; and
(C) the extent to which the Federal regu-
latory structure impacts the achievement of the
objectives in subparagraph (B).
(3) CONSULTATION.—Consultation in accordance
with this paragraph means consultation with—
(A) the Board of Governors of the Federal
Reserve System;
(B) the Director of the Office of Thrift Su-
pervision;
(C) the Chairperson of the Federal Deposit
Insurance Corporation;
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(D) the Comptroller of the Currency;
(E) the Secretary of the Treasury;
(F) the Secretary of the Department of
Housing and Urban Development;
(G) the Securities Exchange Commission;
(H) the Commodities Futures Trading
Commission;
(I) the Director of the Congressional Budget
Office; and
(J) the Comptroller General of the United
States.
(b) RECOMMENDATIONS.—Based on the results of the
study conducted under subsection (a), the Commission shall
develop specific recommendations for changes in laws and
regulations to improve the operation of the United States
financial services system, including needed changes in the
Federal legislative and regulatory policies and in the Fed-
eral regulatory structure that would enhance—
(1) the ability of the financial services system, or
any part thereof, to respond to the needs of all poten-
tial users of the system;
(2) the systemic safety of the financial services
system;
(3) the cost of financial services to users of the
system;
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(4) the competitiveness of the various providers
of financial services;
(5) how funds are allocated to the financial serv-
ices system; and
(6) how funds are allocated by the financial serv-
ices system to users of the system or to specific cat-
egories of users.
(c) REPORT.—Not later than March 31, 1995, the
Commission shall submit to the President, the Speaker of
the House of Representatives, and the President pro tempore
of the Senate a report describing the activities of the Com-
mission, including the study conducted under subsection (a)
and any recommendations developed under subsection (b).
SEC. 304. POWERS OF THE COMMISSION.
(a) HEARINGS.—The Commission may hold such hear-
ings, sit and act at such times and places, take such testi-
mony, and receive such evidence as the Commission consid-
ers advisable to carry out this section.
(b) OBTAINING OFFICIAL DATA.—The Commission
may secure directly from any Federal department or agency
such information (other than information required by any
statute of the United States to be kept confidential by such
department or agency) as the Commission considers nec-
essary to carry out its duties under this section. Upon the
request of the Chairperson, the head of that department or
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agency shall furnish such nonconfidential information to
the Commission.
(c) POSTAL SERVICES.—The Commission may use the
United States mails in the same manner and under the
same conditions as other departments and agencies of the
Federal Government.
SEC. 305. COMMISSION PERSONNEL MATTERS.
(a) COMPENSATION OF MEMBERS.—Each member of
the Commission who is not an officer or employee of the
Federal Government shall be compensated at a rate equal
to the daily equivalent of the annual rate of basic pay pre-
scribed for level IV of the Executive Schedule under section
5315 of title 5, United States Code, for each day (including
travel time) during which such member is engaged in the
performance of the duties of the Commission. All members
of the Commission who are officers or employees of the Unit-
ed States shall serve without compensation in addition to
that received for their services as officers or employees of
the United States.
(b) TRAVEL EXPENSES.—The members of the Commis-
sion shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places
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of business in the performance of services for the Commis-
sion.
(c) STAFF.—
(1) IN GENERAL.—The Chairperson may, with-
out regard to the civil service laws and regulations,
appoint and terminate an executive director and not
more than 2 additional professional staff members to
enable the Commission to perform its duties. The em-
ployment of an executive director shall be subject to
confirmation by the Commission.
(2) COMPENSATION.—The Chairperson may fix
the compensation of the executive director and other
personnel without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5, United
States Code, relating to the classification of positions
and General Schedule pay rates, except that the rate
of pay for the executive director and other personnel
may not exceed the rate payable for level V of the Ex-
ecutive Schedule under section 5316 of title 5, United
States Code.
(d) DETAIL OF FEDERAL EMPLOYEES.—Upon the re-
quest of the Chairperson, any Federal Government employee
may be detailed to the Commission without reimbursement,
and such detail shall be without interruption or loss of civil
service status or privilege.
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(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Chairperson may procure temporary
and intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under sec-
tion 5316 of title 5, United States Code.
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Chairperson, the Administrator of General
Services shall provide to the Commission, on a reimbursable
basis, the administrative support services necessary for the
Commission to carry out its responsibilities under this sec-
tion.
SEC. 306. TERMINATION OF COMMISSION.
The Commission shall terminate 30 days after the date
of submission of the report required under section 303(c).
All records and papers of the Commission shall thereupon
be delivered by the Administrator of General Services for
deposit in the National Archives.
SEC. 307. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as may be necessary to carry out this
Act.