tive officer, a chief financial officer, and any
other senior executive officer (as defined by the
appropriate Federal banking agency pursuant
to section 32(f)).’’.
SEC. 222. AMENDMENTS RELATING TO LIMITED PURPOSE
BANKS.
Section 4(f) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(f)) is amended—
(1) in paragraph (2)(A)(ii)—
(A) by striking ‘‘and’’ at the end of sub-
clause (IX);
(B) by inserting ‘‘and’’ after the semicolon
at the end of subclause (X); and
(C) by inserting after subclause (X) the
following new subclause:
‘‘(XI) assets that are derived
from, or are incidental to, activities in
which institutions described in section
2(c)(2)(F) are permitted to engage,’’;
(2) in paragraph (2)—
(A) by striking ‘‘Paragraph (1) shall cease
to apply to any company described in such
paragraph if—’’ and inserting ‘‘A company de-
scribed in paragraph (1) shall no longer qualify
for the exemption provided under such para-
graph if—’’; and
(B) by striking subparagraph (B) and in-
serting the following new subparagraphs:
‘‘(B) any bank subsidiary of such company
engages in any activity in which the bank was
not lawfully engaged as of March 5, 1987, un-
less the bank is well managed and well capital-
ized;
‘‘(C) any bank subsidiary of such company
both—
‘‘(i) accepts demand deposits or de-
posits that the depositor may withdraw by
check or similar means for payment to
third parties; and
‘‘(ii) engages in the business of mak-
ing commercial loans; or
‘‘(D) after the date of the 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 such bank’s ac-
count at a Federal reserve bank, on behalf of
an affiliate, other than an overdraft described
in paragraph (3).’’; and
(3) by striking paragraphs (3) and (4) and in-
serting the following new paragraphs:
‘‘(3) PERMISSIBLE OVERDRAFTS DESCRIBED.—
For purposes of paragraph (2)(D), an overdraft is
described in this paragraph if—
‘‘(A) such overdraft results from an inad-
vertent computer or accounting error that is be-
yond the control of both the bank and the affili-
ate; or
‘‘(B) such overdraft—
‘‘(i) is permitted or incurred on behalf
of an affiliate which is monitored by, re-
ports 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 obli-
gations which 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 obliga-
tions eligible for settlement on the Federal
Reserve book entry system.
‘‘(4) DIVESTITURE IN CASE OF LOSS OF EX-
EMPTION.—If any company described in paragraph
(1) fails to continue to qualify for the exemption
provided under such paragraph by operation of para-
graph (2), the company shall immediately notify the
Board that the company has failed to continue to
qualify for such exemption, and the 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 pe-
riod, 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 exemp-
tion; or
‘‘(ii) received approval from the Board
of a plan to correct the condition in a
timely manner (which shall not exceed 1
year); and
‘‘(B) implemented procedures that are rea-
sonably adapted to avoid the reoccurrence of
such condition or activity.’’.
SEC. 223. 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) which extends credit
through credit card accounts for qualified business
purposes shall not be treated as engaging in the
business of making commercial loans by reason of
such extensions of credit.
‘‘(2) QUALIFIED BUSINESS PURPOSE.—
‘‘(A) IN GENERAL.—The Board shall pre-
scribe regulations defining the term ‘qualified
business purposes’ for purposes of this sub-
section.
‘‘(B) CERTAIN
BUSINESS
PURPOSES
EX-
CLUDED.—In defining the term ‘qualified busi-
ness purposes’ under subparagraph (A), the
Board—
‘‘(i) may not treat extensions of credit
through a credit card account for expendi-
tures for capital improvements, acquisi-
tions of inventory, or other large acquisi-
tions as a qualified business purpose for
credit card accounts; and
‘‘(ii) may treat extensions of credit
through a credit card account for expendi-
tures involving employee travel, entertain-
ment, and subsistence, purchases involving
a small number of items and low-dollar
amounts, and other small acquisitions as
qualified business purposes for credit card
accounts.
‘‘(3) CREDIT CARD DEFINED.—For purposes of
this subsection, the term ‘credit card’ has the same
meaning as in section 103 of the Truth In Lending
Act.’’.
TITLE III—STREAMLINING FED-
ERAL BANKING AGENCY RE-
QUIREMENTS 
AND 
ELIMI-
NATION OF UNNECESSARY OR
OUTDATED REQUIREMENTS
SEC. 301. ‘‘PLAIN ENGLISH’’ REQUIREMENT FOR FEDERAL
BANKING AGENCY RULES.
(a) IN GENERAL.—Each Federal banking agency
shall use plain English in all proposed and final
rulemakings published by the agency in the Federal Reg-
ister after January 1, 1999.
(b) REPORT.—Not later than June 1, 2000, each
Federal banking agency shall submit to the Congress a
report that describes how the agency has complied with
subsection (a).
(c) DEFINITIONS.—For purposes of this section and
section 302, the terms ‘‘Federal banking agency’’ and
‘‘State bank supervisor’’ have the meanings given such
terms in section 3 of the Federal Deposit Insurance Act.
SEC. 302. CALL REPORT SIMPLIFICATION.
(a) MODERNIZATION OF CALL REPORT FILING AND
DISCLOSURE SYSTEM.—In order to reduce the adminis-
trative requirements pertaining to bank reports of condi-
tion, savings association financial reports, and bank hold-
ing company consolidated and parent-only financial state-
ments, and to improve the timeliness of such reports and
statements, the Federal banking agencies (after consulting
with State bank supervisors) shall—
(1) work jointly to develop a system under
which—
(A) insured depository institutions and
their affiliates may file such reports and state-
ments electronically; and
(B) the Federal banking agencies may
make such reports and statements available to
the public electronically; and
(2) not later than July 1, 2000, 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 IN-
STRUCTIONS.—The Federal banking agencies (after con-
sulting with State bank supervisors) 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 state-
ments 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 (after consulting with State bank
supervisors) shall—
(1) review the information required by sched-
ules supplementing the core information referred to
in subsection (b); and
(2) eliminate requirements that are not war-
ranted for reasons of safety and soundness or other
public purposes.
SEC. 303. PURCHASED MORTGAGE SERVICE RIGHTS.
Section 475 of the Federal Depository Insurance Cor-
poration Improvement Act of 1991 (12 U.S.C. 1828 note)
is amended—
(1) in subsection (a)(1), by inserting ‘‘(or such
other percentage exceeding 90 percent but not ex-
ceeding 100 percent, as may be determined under
subsection (b))’’ after ‘‘90 percent’’; and
(2) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively, and by insert-
ing after subsection (a) the following new subsection:
‘‘(b) AUTHORITY TO DETERMINE PERCENTAGE BY
WHICH TO DISCOUNT VALUE OF SERVICING RIGHTS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(a)(1), the appropriate Federal banking agencies
may allow readily marketable purchased mortgage
servicing rights to be valued at more than 90 per-
cent of their fair market value but at not more than
100 percent of such value, if such agencies jointly
make a finding before the end of the 180-day period
beginning on the date of the enactment of the De-
pository Institution Regulatory Streamlining Act of
1998 that such valuation would not have an adverse
affect on the deposit insurance funds or the safety
and soundness of insured depository institutions.
‘‘(2) JOINT
RULEMAKING.—Any regulations
prescribed pursuant to paragraph (1) shall be pre-
scribed jointly by the Federal banking agencies.’’.
SEC. 304. JUDICIAL REVIEW OF RECEIVERSHIP APPOINT-
MENTS.
(a) APPOINTMENT FOR NATIONAL BANK.—Section 2
of the National Bank Receivership Act (12 U.S.C. 191)
is amended—
(1) by inserting ‘‘(a) APPOINTMENT
OF RE-
CEIVER.—’’ before ‘‘The Comptroller’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) JUDICIAL REVIEW.—Within 30 days after the
appointment under subsection (a) of a receiver for a na-
tional bank, the national bank may bring an action in the
United States district court for the judicial district in
which the home office of the bank is located, or in the
United States District Court for the District of Columbia,
for an order requiring the Comptroller to remove the re-
ceiver, and the court shall, on the merits, dismiss the ac-
tion or direct the Comptroller to remove the receiver.’’.
(b) APPOINTMENT
OF FEDERAL DEPOSIT INSUR-
ANCE CORPORATION.—Section 11(c)(7) of the Federal
Deposit Insurance Act (12 U.S.C. 1811(c)(7)) is amended
to read as follows:
‘‘(7) JUDICIAL REVIEW.—Within 30 days after
the Corporation is appointed as conservator or re-
ceiver for an insured depository institution under
paragraph (4), (9), or (10), the institution may
bring an action in the United States district court
for the judicial district in which the home office of
the institution is located, or in the United States
District Court for the District of Columbia, for an
order requiring the Corporation to be removed as
the conservator or receiver, and the court shall, on
the merits, dismiss the action or direct the Corpora-
tion to be removed as the conservator or receiver.’’.
SEC. 305. ELIMINATION OF OUTDATED STATUTORY MINI-
MUM CAPITAL REQUIREMENTS.
Section 5138 of the Revised Statutes of the United
States (12 U.S.C. 51) is repealed.
SEC. 306. ELIMINATION OF INDIVIDUAL BRANCH CAPITAL
REQUIREMENTS.
Section 5155(c) of the Revised Statutes of the United
States (12 U.S.C. 36(c)) is amended—
(1) in the second sentence, by striking ‘‘, with-
out regard to the capital requirements of this sec-
tion,’’; and
(2) by striking the third sentence.
SEC. 307. AMENDMENT TO SHAREHOLDER NOTICE PROVI-
SIONS RELATING TO CONSOLIDATIONS AND
MERGERS.
(a) Section 2(a) of the Act of August 17, 1950, enti-
tled ‘‘An Act to provide for the conversion of national
banking associations into and their merger or consolida-
tion with State banks, and for other purposes.’’ (12 U.S.C.
214a(a)) is amended by striking ‘‘registered mail or by
certified’’.
(b) Sections 2(a) and 3(a)(2) of the National Bank
Consolidation and Merger Act (12 U.S.C. 215(a) and
215a(a)(2)) are each amended by striking ‘‘certified or
registered’’ each place it appears.
SEC. 308. 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
COR-
PORATION.—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 in-
terest to creditors holding proven claims against
the receivership estates of insured Federal or
State depository institutions following satisfac-
tion by the receiver of the principal amount of
all creditor claims.’’.
SEC. 309. 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. 310. ALLOWANCES FOR CERTAIN EXTENSIONS OF
CREDIT TO EXECUTIVE OFFICERS.
Section 22(g) of the Federal Reserve Act (12 U.S.C.
375a) is amended—
(1) by redesignating paragraphs (6) through
(10) as paragraphs (8) through (12), respectively;
(2) by inserting after paragraph (5) the follow-
ing new paragraphs:
‘‘(6) A member bank may extend to any execu-
tive officer of the bank a home equity line of credit
which does not exceed $100,000 and is secured by
a lien on the primary residence of the executive offi-
cer, to the extent that the aggregate amount of such
lien and all other outstanding extensions of credit
secured by liens on such primary residence does not
exceed the appraised value of such residence.
‘‘(7) A member bank may extend credit to any
executive officer of the bank in an amount not to ex-
ceed the greater of—
‘‘(A) the amount which is the lesser of 2.5
percent of the aggregate amount of capital and
unimpaired surplus of the bank or $100,000; or
‘‘(B) $25,000,
if, at the time the credit is extended, the extension
of credit is secured by readily marketable assets that
have a fair market value of not less than twice the
amount of credit extended.’’; and
(3) in paragraph (8) (as so redesignated by
paragraph (1) of this section), by striking ‘‘(3) and
(4)’’ and inserting ‘‘(3), (4), (6), and (7)’’.
SEC. 311. FEDERAL RESERVE ACT LENDING LIMITS.
Section 11(m) of the Federal Reserve Act (12 U.S.C.
248(m)) is amended to read as follows:
‘‘(m) [Repealed].’’.
SEC. 312. REPEAL OF BANK HOLDING COMPANY ACT PRO-
VISION LIMITING SAVINGS BANK LIFE INSUR-
ANCE.
Section 3(f) of the Bank Holding Company Act of
1956 (12 U.S.C. 1842(f)) is amended to read as follows:
‘‘(f) [Repealed].’’.
SEC. 313. AMENDMENT TO SECTION 5137 OF THE REVISED
STATUTES OF THE UNITED STATES.
(a) IN GENERAL.—Section 5137 of the Revised Stat-
utes of the United States (12 U.S.C. 29) is amended by
adding at the end the following new subsection:
‘‘(d) ADDITIONAL EXTENSION FOR PASSIVE INVEST-
MENTS IN SUBSURFACE RIGHTS AND INTERESTS.—
‘‘(1) IN GENERAL.—With respect to subsurface
rights of real estate, and interests in such rights, which
a national bank holds pursuant to the prior approval of
the Comptroller of the Currency under subsection (b), the
national bank may apply for, and the Comptroller of the
Currency may approve, possession by the bank of such
rights and interests for an additional period not to exceed
5 years if—
‘‘(A) the national bank acquired the prop-
erty pursuant to the paragraphs designated the
‘Second’, ‘Third’, and ‘Fourth’ of subsection
(a);
‘‘(B) the national bank—
‘‘(i) holds the rights or interest pas-
sively; and
‘‘(ii) is not engaged in production, ex-
traction, exploration, or other active use of
the rights or interests;
‘‘(C) the national bank—
‘‘(i) values the subsurface rights and
interests in such rights on the books of the
bank for no more than a nominal amount;
and
‘‘(i) separately discloses the aggregate
amount of earnings from the rights and in-
terests in the annual financial statements
of the bank; and
‘‘(D) the Comptroller of the Currency de-
termines that the possession of such rights and
interests is not inconsistent with the safety and
soundness of the national bank.
‘‘(2) AUTHORITY
OF
COMPTROLLER
OF
THE
CURRENCY TO REQUIRE DIVESTITURE.—The Comp-
troller of the Currency may order, at any time, a na-
tional bank which holds subsurface rights of real es-
tate, and interests in such rights, pursuant to para-
graph (1) to divest such rights and interests if the
Comptroller determines that continued ownership of
such rights or interests is detrimental to the na-
tional bank.’’.
(b) TECHNICAL AMENDMENTS TO REDESIGNATE UN-
DESIGNATED PARAGRAPHS
AS SUBSECTIONS.—Section
5137 of the Revised Statutes of the United States (12
U.S.C. 29) is amended—
(1) in the 1st undesignated paragraph by strik-
ing ‘‘5137. A national banking association may pur-
chase’’ and inserting the following:
‘‘SEC. 5137. POWER TO HOLD REAL ESTATE.
‘‘(a) IN GENERAL.—A national banking association
may purchase’’;
(2) in the 3d undesignated paragraph, by strik-
ing ‘‘For real estate in the possession of a national
banking association upon application’’ and inserting
the following:
‘‘(b) EXTENSION OF DIVESTMENT PERIOD AUTHOR-
IZED FOR INELIGIBLE REAL ESTATE.—For real estate in
the possession of a national banking association upon ap-
plication’’; and
(3) in the 4th undesignated paragraph, by
striking ‘‘Notwithstanding the five-year holding limi-
tation of this section’’ and inserting the following:
‘‘(c) EXTENSION OF HOLDING PERIOD UNDER CER-
TAIN CIRCUMSTANCES.—Notwithstanding the 5-year hold-
ing period limitation contained in subsection (a)’’.
TITLE IV—DISCLOSURE
SIMPLIFICATION
SEC. 401. ALTERNATIVE DISCLOSURE FOR VARIABLE RATE,
OPEN-ENDED HOME SECURED CREDIT.
Section 127A(a)(2)(G) of the Truth in Lending Act
(15 U.S.C. 1637a) is amended by inserting ‘‘or, at the
option of the creditor, a statement that periodic payments
may substantially increase or decrease’’ before the semi-
colon.
TITLE V—BANK EXAMINATION
REPORT PRIVILEGE ACT
SEC. 501. AMENDMENT TO THE FEDERAL DEPOSIT INSUR-
ANCE ACT.
The Federal Deposit Insurance Act (12 U.S.C. 1811
et seq.) is amended by adding at the end the following
new section:
‘‘SEC. 45. BANK SUPERVISORY PRIVILEGE.
‘‘(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’ includes—
‘‘(A) any institution which is treated in the
same manner as an insured depository institu-
tion under paragraph (3), (4), (5), or (9) of
section 8(b); and
‘‘(B) any subsidiary or other affiliate of an
insured depository institution or an institution
described in subparagraph (A).
‘‘(2) SUPERVISORY
PROCESS.—The term ‘su-
pervisory process’ means any activity engaged in by
a Federal banking agency to carry out the official
responsibilities of the agency with regard to the reg-
ulation or supervision of depository institutions.
‘‘(3) CONFIDENTIAL
SUPERVISORY
INFORMA-
TION.—Subject to paragraph (4), the term ‘con-
fidential supervisory information’ means any of the
following information, or any portion of any such in-
formation, which is treated as, or considered to be,
confidential information by a Federal banking agen-
cy, regardless of the medium in which the informa-
tion is conveyed or stored:
‘‘(A) Any report of examination, inspec-
tion, visitation, or investigation, and informa-
tion prepared or collected by a Federal banking
agency in connection with the supervisory proc-
ess, including any computer file, work paper, or
similar document.
‘‘(B) Any correspondence of communica-
tion from a Federal banking agency to a deposi-
tory institution as part of an examination, in-
spection, visitation, or investigation by a Fed-
eral banking agency.
‘‘(C) Any correspondence, communication,
or document, including any compliance and
other reports, created by a depository institu-
tion in response to any request, inquiry, or di-
rective from a Federal banking agency in con-
nection with any examination, inspection, visita-
tion, or investigation and provided to a Federal
banking agency.
‘‘(D) Any record of a Federal banking
agency to the extent it contains information de-
rived from any report, correspondence, commu-
nication or other information described in sub-
paragraph (A), (B), or (C).
(4) 
ORDINARY
BUSINESS
RECORDS
EX-
CLUDED.—The term ‘confidential supervisory infor-
mation’ shall not include any book or record in the
possession of the depository institution routinely pre-
pared by the depository institution and maintained
in the ordinary course of business or any informa-
tion required to be made publicly available by any
Federal law or regulation.
‘‘(b) BANK SUPERVISORY PRIVILEGE.—
‘‘(1) PRIVILEGE ESTABLISHED.—
‘‘(A) IN GENERAL.—All confidential super-
visory information shall be the property of the
Federal banking agency that created or re-
quested the information and shall be privileged
from disclosure to any other person.
‘‘(B) PROHIBITION
ON
UNAUTHORIZED
DISCLOSURES.—No person in possession of con-
fidential supervisory information may disclose
such information, in whole or in part, without
the prior authorization of the Federal banking
agency that created or requested the informa-
tion, except for a disclosure made in published
statistical material that does not disclose, either
directly or when used in conjunction with pub-
licly available information, the affairs of any
person.
‘‘(C) 
AGENCY
WAIVER.—The 
Federal
banking agency may waive, in whole or in part,
in the discretion of the agency, any privilege es-
tablished under this paragraph.
‘‘(2) EXCEPTION.—No provision of paragraph
(1) shall be construed as preventing access to con-
fidential supervisory information by duly authorized
committees of the United States Congress or the
Comptroller General of the United States.
‘‘(c) TREATMENT OF STATE AND FOREIGN SUPER-
VISORY INFORMATION.—In any proceeding before a court
of the United States, in which a person seeks to compel
production or disclosure by a State bank supervisor, for-
eign bank regulatory or supervisory authority, Federal
banking agency, or other person, of information or a docu-
ment prepared or collected by a State bank supervisor or
foreign bank regulatory or supervisory authority that
would, had they been prepared or collected by a Federal
banking agency, be confidential supervisory information
for purposes of this section, the information or document
shall be privileged to the same extent that the information
and documents of Federal banking agencies are privileged
under this Act.
‘‘(d) OTHER PRIVILEGES NOT WAIVED BY DISCLO-
SURE TO BANKING AGENCY.—The submission by a depos-
itory institution of any information to a Federal banking
agency, a State bank supervisor, or a foreign banking au-
thority for any purpose in the course of the supervisory
process of such agency or supervisor shall not be construed
as waiving, destroying, or otherwise affecting any privilege
such institution may claim with respect to such informa-
tion under Federal or State law.
‘‘(e) DISCOVERY
AND DISCLOSURE
OF INFORMA-
TION.—
‘‘(1) INFORMATION
AVAILABLE
ONLY
FROM
BANKING AGENCY.—
‘‘(A) IN GENERAL.—A person seeking dis-
covery or disclosure, in whole or in part, of con-
fidential supervisory information may not seek
to obtain such information through subpoena,
discovery procedures, or other process from any
person, except that such information may be
sought in accordance with this section from the
Federal banking agency that created or re-
quested the information.
‘‘(B) REQUESTS SUBMITTED TO BANKING
AGENCY.—Any request for discovery or disclo-
sure of confidential supervisory information
shall be made to the Federal banking agency
that created or requested the information,
which shall determine within a reasonable time
period whether to disclose such information
pursuant to procedures and criteria established
in regulations.
‘‘(2) EXCLUSIVE
FEDERAL
COURT
JURISDIC-
TION OVER DISPUTES.—
‘‘(A) IN GENERAL.—Federal courts shall
have exclusive jurisdiction over actions or pro-
ceedings in which any party seeks to compel
disclosure of confidential supervisory informa-
tion.
‘‘(B) JUDICIAL REVIEW.—Judicial review
of the final action of a Federal banking agency
with regard to the disposition of a request for
confidential supervisory information shall be be-
fore a district court of the United States of
competent jurisdiction, subject to chapter 7 of
part I of title 5, United States Code.
‘‘(C) RIGHT TO APPEAL.—Any court order
that compels production of confidential super-
visory information may be immediately appealed
by the Federal banking agency and the order
compelling production shall be automatically
stayed, pending the outcome of such appeal.
‘‘(f) SUBPOENAS.—
‘‘(1) AUTHORITY TO INTERVENE.—In the case
of any action or proceeding to compel compliance
with a subpoena, order, discovery request, or other
judicial or administrative process with respect to any
confidential supervisory information relating to any
depository institution, a Federal banking agency and
the depository institution may intervene in such ac-
tion or proceeding for the purpose of—
‘‘(A) enforcing the limitations established
in paragraph (1) of subsections (b) and (e);
‘‘(B) seeking the withdrawal of any com-
pulsory process with respect to such informa-
tion; and
‘‘(C) registering appropriate objections
with respect to the action or proceeding to the
extent the action or proceeding relates to or in-
volves such information.
‘‘(2) RIGHT TO APPEAL.—Any court order that
compels production of confidential supervisory infor-
mation may be immediately appealed by the Federal
banking agency and the order compelling production
shall be automatically stayed, pending the outcome
of such appeal.
‘‘(g) REGULATIONS.—
‘‘(1) AUTHORITY TO PRESCRIBE.—Each Fed-
eral banking agency may prescribe such regulations
as the agency considers to be appropriate, after con-
sultation with the other Federal banking agencies
and the National Credit Union Administration
Board, to carry out the purposes of this section.
‘‘(2) AUTHORITY
TO
REQUIRE
NOTICE.—Any
regulations prescribed by a Federal banking agency
under paragraph (1) may require any person in pos-
session of confidential supervisory information to no-
tify the Federal banking agency whenever the person
is served with a subpoena, order, discovery request,
or other judicial or administrative process requiring
the personal attendance of such person as a witness
or requiring the production of such information in
any proceeding.
‘‘(h) ACCESS IN ACCORDANCE WITH REGULATIONS
AND ORDERS.—Notwithstanding any other provision of
this section, the Federal banking agency may, without
waiving any privilege, authorize access to confidential su-
pervisory information for any appropriate governmental,
law enforcement, or public purpose in accordance with
agency regulations or orders.’’.
SEC. 502. AMENDMENT TO THE FEDERAL CREDIT UNION
ACT.
Title II of the Federal Credit Union Act (12 U.S.C.
1781 et seq.) is amended by adding at the end the follow-
ing new section:
‘‘SEC. 215. CREDIT UNION SUPERVISORY PRIVILEGE.
‘‘(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) SUPERVISORY
PROCESS.—The term ‘su-
pervisory process’ means any activity engaged in by
the Administration to carry out the official respon-
sibilities of the Administration with regard to the
regulation or supervision of credit unions.
‘‘(2) CONFIDENTIAL
SUPERVISORY
INFORMA-
TION.—The term ‘confidential supervisory informa-
tion’ means any of the following information, or any
portion of any such information, which is treated as,
or considered to be, confidential information by the
Administration, regardless of the medium in which
the information is conveyed or stored:
‘‘(A) Any report of examination, inspec-
tion, visitation, or investigation, and informa-
tion prepared or collected by the Administration
in connection with the supervisory process, in-
cluding any computer file, work paper, or simi-
lar document.
‘‘(B) Any correspondence or communica-
tion from the Administration to a credit union
arising from or relating to an examination, in-
spection, visitation, or investigation by the Ad-
ministration.
‘‘(C) Any correspondence, communication,
or document, including any compliance and
other reports, created by a credit union in re-
sponse to any request, inquiry, or directive from
the Administration in connection with any ex-
amination, inspection, visitation, or investiga-
tion and provided to the Administration, other
than any book or record in the possession of the
credit union routinely prepared by the credit
union and maintained in the ordinary course of
business or any information required to be
made publicly available by any Federal law or
regulation.
‘‘(D) Any record of the Administration to
the extent it contains information derived from
any report, correspondence, communication or
other information described in subparagraph
(A), (B), or (C).
‘‘(b) CREDIT UNION SUPERVISORY PRIVILEGE.—
‘‘(1) PRIVILEGE ESTABLISHED.—
‘‘(A) IN GENERAL.—All confidential super-
visory information shall be the property of the
Administration and shall be privileged from dis-
closure to any other person.
‘‘(B) PROHIBITION
ON
UNAUTHORIZED
DISCLOSURES.—No person in possession of con-
fidential supervisory information may disclose
such information, in whole or in part, without
the prior authorization of the Administration,
except for a disclosure made in published statis-
tical material that does not disclose, either di-
rectly or when used in conjunction with publicly
available information, the affairs of any person.
‘‘(C) AGENCY WAIVERS.—The Board may
waive, in whole or in part, in the discretion of
the Board, any privilege established under this
paragraph.
‘‘(2) EXCEPTION.—No provision of paragraph
(1) shall be construed as preventing access to con-
fidential supervisory information by duly authorized
committees of the United States Congress or the
Comptroller General of the United States.
‘‘(c) OTHER PRIVILEGES NOT WAIVED BY DISCLO-
SURE TO ADMINISTRATION.—The submission by a credit
union of any information to the Administration or a State
credit union supervisor for any purpose in the course of
the supervisory process of the Administration or such su-
pervisor shall not be construed as waiving, destroying, or
otherwise affecting any privilege such institution may
claim with respect to such information under Federal or
State law.
‘‘(d) DISCOVERY
AND DISCLOSURE
OF INFORMA-
TION.—
‘‘(1) INFORMATION AVAILABLE ONLY FROM AD-
MINISTRATION.—
‘‘(A) IN GENERAL.—A person seeking dis-
covery or disclosure, in whole or in part, of con-
fidential supervisory information may not seek
to obtain such information through subpoena,
discovery procedures, or other process from any
person, except that such information may be
sought in accordance with this section from the
Administration.
‘‘(B) REQUEST SUBMITTED TO ADMINIS-
TRATION.—Any request for discovery or disclo-
sure of confidential supervisory information
shall be made in the Administration, which
shall determine within a reasonable time period
whether to disclose such information pursuant
to procedures and criteria established in regula-
tions.
‘‘(2) EXCLUSIVE
FEDERAL
COURT
JURISDIC-
TION OVER DISPUTES.—
‘‘(A) IN GENERAL.—Federal courts shall
have exclusive jurisdiction over actions or pro-
ceedings in which any party seeks to compel
disclosure of confidential supervisory informa-
tion.
‘‘(B) JUDICIAL REVIEW.—Judicial review
of the final action of the Administration with
regard to the disposition of a request for con-
fidential supervisory information shall be before
a district court of the United States of com-
petent jurisdiction, subject to chapter 7 of part
I of title 5, United States Code.
‘‘(C) RIGHT TO APPEAL.—Any court order
that compels production of confidential super-
visory information may be immediately appealed
by the Administration and the order compelling
production shall be automatically stayed, pend-
ing the outcome of such appeal.
‘‘(e) SUBPOENAS.—
‘‘(1) AUTHORITY TO INTERVENE.—In the case
of any action or proceeding to compel compliance
with a subpoena, order, discover request, or other ju-
dicial or administrative process with respect to any
confidential supervisory information relating to any
credit union, the Administration and the credit
union may intervene in such action or proceeding for
the purpose of—
‘‘(A) enforcing the limitations established
in paragraph (1) of subsections (b) and (d);
‘‘(B) seeking the withdrawal of any com-
pulsory process with respect to such informa-
tion; and