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‘‘(b) ADVERTISING
MEDIUM
NOT
LIABLE.—No
owner or employee of any entity that serves as a medium
in which an advertisement appears or through which an
advertisement is disseminated, shall be liable under this
section.’’.
SEC. 2606. STUDY OF CORPORATE CREDIT UNIONS.
(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the National Credit Union Administra-
tion.
(2) BOARD.—The term ‘‘Board’’ means the Na-
tional Credit Union Administration Board.
(3) CORPORATE
CREDIT
UNION.—The term
‘‘corporate credit union’’ has the meaning given such
term by rule or regulation of the Board.
(4) FUND.—The term ‘‘Fund’’ means the Na-
tional Credit Union Share Insurance Fund estab-
lished under section 203 of the Federal Credit
Union Act.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.
(b) STUDY.—
(1) IN GENERAL.—The Secretary, in consulta-
tion with the Board, the Corporation, the Comptrol-
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ler of the Currency, and the Administration, shall
conduct a study and evaluation of—
(A) the oversight and supervisory practices
of the Administration concerning the Fund, in-
cluding the treatment of amounts deposited in
the Fund pursuant to section 202(c) of the
Federal Credit Union Act, including analysis
of—
(i) whether those amounts should
be—
(I) refundable; or
(II) treated as expenses; and
(ii) the use of those amounts in deter-
mining equity capital ratios;
(B) the potential for, and potential effects
of, administration of the Fund by an entity
other than the Administration;
(C) the 10 largest corporate credit unions
in the United States, conducted in cooperation
with appropriate employees of other Federal
agencies with expertise in the examination of
federally insured financial institutions, includ-
ing—
(i) the investment practices of those
credit unions; and
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(ii) the financial stability, financial
operations, and financial controls of those
credit unions;
(D) the regulations of the Administration;
and
(E) the supervision of corporate credit
unions by the Administration.
(c) REPORT.—Not later than 12 months after the
date of enactment of this Act, the Secretary shall submit
to the appropriate committees of the Congress, a report
that includes the results of the study and evaluation con-
ducted under subsection (b), together with any rec-
ommendations that the Secretary considers to be appro-
priate.
SEC. 2607. REPORT ON THE RECONCILIATION OF DIF-
FERENCES 
BETWEEN 
REGULATORY 
AC-
COUNTING PRINCIPLES AND GENERALLY AC-
CEPTED ACCOUNTING PRINCIPLES.
Not later than 180 days after the date of enactment
of this Act, each appropriate Federal banking agency shall
submit to the Committee on Banking and Financial Serv-
ices of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate,
a report describing both the actions that have been taken
by the agency and the actions that will be taken by the
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agency to eliminate or conform inconsistent or duplicative
accounting and reporting requirements applicable to re-
ports or statements filed with any such agency by insured
depository institutions, as required by section 121 of the
Federal Deposit Insurance Corporation Improvement Act
of 1991.
SEC. 2608. STATE-BY-STATE AND METROPOLITAN AREA-BY-
METROPOLITAN AREA STUDY OF BANK FEES.
Section 1002(b)(2)(A) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1811 note) is amended to read as follows:
‘‘(A) a description of any discernible trend,
in the Nation as a whole, in each of the 50
States, and in each consolidated metropolitan
statistical area or primary metropolitan statis-
tical area (as defined by the Director of the Of-
fice of Management and Budget), in the cost
and availability of retail banking services (in-
cluding fees imposed for providing such serv-
ices), that delineates differences between in-
sured depository institutions on the basis of
both the size of the institution and any engage-
ment of the institution in multistate activity;
and’’.
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SEC. 2609. PROSPECTIVE APPLICATION OF GOLD CLAUSES
IN CONTRACTS.
Section 5118(d)(2) of title 31, United States Code,
is amended by adding at the end the following: ‘‘This
paragraph shall apply to any obligation issued on or before
October 27, 1977, notwithstanding any assignment or no-
vation of such obligation after October 27, 1977, unless
all parties to the assignment or novation specifically agree
to include a gold clause in the new agreement. Nothing
in the preceding sentence shall be construed to affect the
enforceability of a Gold Clause contained in any obligation
issued after October 27, 1977 if the enforceability of that
Gold Clause has been finally adjudicated before the date
of enactment of the Economic Growth and Regulatory Pa-
perwork Reduction Act of 1996.’’.
SEC. 2610. QUALIFIED FAMILY PARTNERSHIPS.
Section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841) is amended—
(1) in subsection (b), by inserting ‘‘, and shall
not include a qualified family partnership’’ after ‘‘by
any State’’; and
(2) in subsection (o), by adding at the end the
following:
‘‘(10) QUALIFIED FAMILY PARTNERSHIP.—The
term ‘qualified family partnership’ means a general
or limited partnership that the Board determines—
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‘‘(A) does not directly control any bank,
except through a registered bank holding com-
pany;
‘‘(B) does not control more than 1 reg-
istered bank holding company;
‘‘(C) does not engage in any business ac-
tivity, except indirectly through ownership of
other business entities;
‘‘(D) has no investments other than those
permitted for a bank holding company pursuant
to section 4(c);
‘‘(E) is not obligated on any debt, either
directly or as a guarantor;
‘‘(F) has partners, all of whom are ei-
ther—
‘‘(i) individuals related to each other
by blood, marriage (including former mar-
riage), or adoption; or
‘‘(ii) trusts for the primary benefit of
individuals related as described in clause
(i); and
‘‘(G) has filed with the Board a statement
that includes—
‘‘(i) the basis for the eligibility of the
partnership under subparagraph (F);
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(1) Severe drought is being experienced in the
Plains and the Southwest portions of our country.
(2) Soil erosion is becoming a critical issue as
the dry season approaches and summer winds may
rob these fields of nutrient-rich topsoil.
(3) Without immediate assistance, ranchers and
farmers would be forced to cull their herds bringing
tremendous volatility in the beef market.
(4) The American people will feel the impact of
this drought in their pocketbooks through higher
prices for grain products.
(5) The communities in drought-stricken areas
are suffering and borrowers may have difficulty
meeting their obligations to financial institutions.
(6) Congress has already passed the Depository
Institutions Disaster Relief Act of 1992 which allows
financial institutions to make emergency exceptions
to the appraisal requirement in times of national dis-
asters.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that financial institutions and Federal bank
regulators should work cooperatively with farmers and
ranchers in communities affected by drought conditions to
allow financial obligations to be met without imposing
undue burdens.
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SEC. 2612. STREAMLINING PROCESS FOR DETERMINING
NEW NONBANKING ACTIVITIES.
Section 4(c)(8) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(8)) is amended by striking
‘‘and opportunity for hearing’’ and inserting the following:
‘‘(and opportunity for hearing in the case of an acquisition
of a savings association)’’.
SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO
ORGANIZE AS LIMITED LIABILITY COMPA-
NIES.
(a) AMENDMENT TO SHORT TITLE.—Section 1 of the
Bank Service Corporation Act (12 U.S.C. 1861(a)) is
amended by striking subsection (a) and inserting the fol-
lowing new subsection:
‘‘(a) SHORT TITLE.—This Act may be cited as the
‘Bank Service Company Act’.’’;
(b) AMENDMENTS TO DEFINITIONS.—Section 1(b) of
the Bank Service Corporation Act (12 U.S.C. 1861(b)) is
amended—
(1) by striking paragraph (2) and inserting the
following new paragraph:
‘‘(2) the term ‘bank service company’ means—
‘‘(A) any corporation—
‘‘(i) which is organized to perform
services authorized by this Act; and
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‘‘(ii) all of the capital stock of which
is owned by 1 or more insured banks; and
‘‘(B) any limited liability company—
‘‘(i) which is organized to perform
services authorized by this Act; and
‘‘(ii) all of the members of which are
1 or more insured banks.’’;
(2) in paragraph (6)—
(A) by striking ‘‘corporation’’ and inserting
‘‘company’’; and
(B) by striking ‘‘and’’ after the semicolon;
(3) by redesignating paragraph (7) as para-
graph (8) and inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) the term ‘limited liability company’ means
any company, partnership, trust, or similar business
entity organized under the law of a State (as defined
in section 3 of the Federal Deposit Insurance Act)
which provides that a member or manager of such
company is not personally liable for a debt, obliga-
tion, or liability of the company solely by reason of
being, or acting as, a member or manager of such
company; and’’; and
(4) in paragraph (8) (as so redesignated)—
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(A) by striking ‘‘corporation’’ each place
such term appears and inserting ‘‘company’’;
and
(B) by striking ‘‘capital stock’’ and insert-
ing ‘‘equity’’.
(c) AMENDMENTS TO SECTION 2.—Section 2 of the
Bank Service Corporation Act (12 U.S.C. 1862) is amend-
ed—
(1) by striking ‘‘corporation’’ and inserting
‘‘company’’;
(2) by striking ‘‘corporations’’ and inserting
‘‘companies’’; and
(3) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(d) AMENDMENTS TO SECTION 3.—Section 3 of the
Bank Service Corporation Act (12 U.S.C. 1863) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(e) AMENDMENTS TO SECTION 4.—Section 4 of the
Bank Service Corporation Act (12 U.S.C. 1864) is amend-
ed—
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(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (b), by inserting ‘‘or mem-
bers’’ after ‘‘shareholders’’ each place such term ap-
pears;
(3) in subsections (c) and (d), by inserting ‘‘or
member’’ after ‘‘shareholder’’ each place such term
appears;
(4) in subsection (e)—
(A) by inserting ‘‘or members’’ after ‘‘na-
tional bank and State bank shareholders’’;
(B) by striking ‘‘its national bank share-
holder or shareholders’’ and inserting ‘‘any
shareholder or member of the company which is
a national bank’’;
(C) by striking ‘‘its State bank shareholder
or shareholders’’ and inserting ‘‘any share-
holder or member of the company which is a
State bank’’;
(D) by striking ‘‘such State bank or
banks’’ and inserting ‘‘any such State bank’’;
and
(E) by inserting ‘‘or members’’ after
‘‘State bank and national bank shareholders’’;
and
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(5) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(f) AMENDMENTS TO SECTION 5.—Section 5 of the
Bank Service Corporation Act (12 U.S.C. 1865) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
(g) AMENDMENTS TO SECTION 6.—Section 6 of the
Bank Service Corporation Act (12 U.S.C. 1866) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) by inserting ‘‘or is not a member of’’ after
‘‘does not own stock in’’;
(3) by striking ‘‘the nonstockholding institu-
tion’’ and inserting ‘‘such depository institution’’;
(4) by inserting ‘‘or is a member of’’ after ‘‘that
owns stock in’’;
(5) in paragraphs (1) and (2), by inserting ‘‘or
nonmember’’ after ‘‘nonstockholding’’; and
(6) in the heading for such section by inserting
‘‘OR NONMEMBERS’’ after ‘‘NONSTOCKHOLDERS’’.
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(h) AMENDMENTS TO SECTION 7.—Section 7 of the
Bank Service Corporation Act (12 U.S.C. 1867) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (a)—
(A) by inserting ‘‘or principal member’’
after ‘‘principal shareholder’’; and
(B) by inserting ‘‘or member’’ after ‘‘other
shareholder’’; and
(3) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
SEC. 2614. RETIREMENT CERTIFICATES OF DEPOSITS.
(a) IN GENERAL.—Section 3(l)(5) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(l)(5) is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at
the end;
(2) in subparagraph (B), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) any liability of an insured depository
institution that arises under an annuity con-
tract, the income of which is tax deferred under
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section 72 of the Internal Revenue Code of
1986.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to any liability of an insured
depository that arises under an annuity contract issued
on or after the date of enactment of this Act.
SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTI-
TUTION ASSOCIATIONS WITH GOVERNMENT-
SPONSORED ENTERPRISES.
(a) CREDIT UNIONS.—Section 201 of the Federal
Credit Union Act (12 U.S.C. 1781) is amended by adding
at the end the following new subsection:
‘‘(e) PROHIBITION ON CERTAIN ASSOCIATIONS.—
‘‘(1) IN
GENERAL.—No insured credit union
may be sponsored by or accept financial support, di-
rectly or indirectly, from any Government-sponsored
enterprise, if the credit union includes the customers
of the Government-sponsored enterprise in the field
of membership of the credit union.
‘‘(2) ROUTINE
BUSINESS
FINANCING.—Para-
graph (1) shall not apply with respect to advances
or other forms of financial assistance generally pro-
vided by a Government-sponsored enterprise in the
ordinary course of business of the enterprise.
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‘‘(3) GOVERNMENT-SPONSORED
ENTERPRISE
DEFINED.—For purposes of this subsection, the
term ‘Government-sponsored enterprise’ has the
meaning given to such term in section 1404(e)(1)(A)
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
‘‘(4) EMPLOYEE CREDIT UNION.—No provision
of this subsection shall be construed as prohibiting
any employee of a Government-sponsored enterprise
from becoming a member of a credit union whose
field of membership is the employees of such enter-
prise.’’.
(b) BANKS AND SAVINGS ASSOCIATIONS.—Section 18
of the Federal Deposit Insurance Act (12 U.S.C. 1828)
is amended by adding at the end the following new sub-
section:
‘‘(s) PROHIBITION ON CERTAIN AFFILIATIONS.—
‘‘(1) IN
GENERAL.—No depository institution
may be an affiliate of, be sponsored by, or accept fi-
nancial support, directly or indirectly, from any Gov-
ernment-sponsored enterprise.
‘‘(2) EXCEPTION FOR MEMBERS OF A FEDERAL
HOME LOAN BANK.—Paragraph (1) shall not apply
with respect to the membership of a depository insti-
tution in a Federal home loan bank.
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‘‘(3) ROUTINE
BUSINESS
FINANCING.—Para-
graph (1) shall not apply with respect to advances
or other forms of financial assistance provided by a
Government-sponsored enterprise pursuant to the
statutes governing such enterprise.
‘‘(4) GOVERNMENT-SPONSORED
ENTERPRISE
DEFINED.—For purposes of this subsection, the
term ‘Government-sponsored enterprise’ has the
meaning given to such term in section 1404(e)(1)(A)
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply on and after January 1, 1996.
Subtitle G—Deposit Insurance
Funds
SEC. 2701. SHORT TITLE.
This subtitle may be cited as the ‘‘Deposit Insurance
Funds Act of 1996’’.
SEC. 2702. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.
(a) IN GENERAL.—Except as provided in subsection
(f), the Board of Directors of the Federal Deposit Insur-
ance Corporation shall impose a special assessment on the
SAIF-assessable deposits of each insured depository insti-
tution in accordance with assessment regulations of the
Corporation at a rate applicable to all such institutions
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that the Board of Directors, in its sole discretion, deter-
mines (after taking into account the adjustments de-
scribed in subsections (g), (h), and (j)) will cause the Sav-
ings Association Insurance Fund to achieve the designated
reserve ratio on the first business day of the 1st month
beginning after the date of the enactment of this Act.
(b) FACTORS TO BE CONSIDERED.—In carrying out
subsection (a), the Board of Directors shall base its deter-
mination on—
(1) the monthly Savings Association Insurance
Fund balance most recently calculated;
(2) data on insured deposits reported in the
most recent reports of condition filed not later than
70 days before the date of enactment of this Act by
insured depository institutions; and
(3) any other factors that the Board of Direc-
tors deems appropriate.
(c) DATE
OF DETERMINATION.—For purposes of
subsection (a), the amount of the SAIF-assessable depos-
its of an insured depository institution shall be determined
as of March 31, 1995.
(d) DATE PAYMENT DUE.—Except as provided in
subsection (g), the special assessment imposed under this
section shall be—
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(1) due on the first business day of the 1st
month beginning after the date of the enactment of
this Act; and
(2) paid to the Corporation on the later of—
(A) the first business day of the 1st month
beginning after such date of enactment; or
(B) such other date as the Corporation
shall prescribe, but not later than 60 days after
the date of enactment of this Act.
(e) ASSESSMENT DEPOSITED
IN SAIF.—Notwith-
standing any other provision of law, the proceeds of the
special assessment imposed under this section shall be de-
posited in the Savings Association Insurance Fund.
(f) EXEMPTIONS FOR CERTAIN INSTITUTIONS.—
(1) EXEMPTION
FOR
WEAK
INSTITUTIONS.—
The Board of Directors may, by order, in its sole
discretion, exempt any insured depository institution
that the Board of Directors determines to be weak,
from paying the special assessment imposed under
this section if the Board of Directors determines
that the exemption would reduce risk to the Savings
Association Insurance Fund.
(2) GUIDELINES REQUIRED.—Not later than 30
days after the date of enactment of this Act, the
Board of Directors shall prescribe guidelines setting
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forth the criteria that the Board of Directors will
use in exempting institutions under paragraph (1).
Such guidelines shall be published in the Federal
Register.
(3) EXEMPTION
FOR
CERTAIN
NEWLY
CHAR-
TERED AND OTHER DEFINED INSTITUTIONS.—
(A) IN GENERAL.—In addition to the insti-
tutions exempted from paying the special as-
sessment under paragraph (1), the Board of
Directors shall exempt any insured depository
institution from payment of the special assess-
ment if the institution—
(i) was in existence on October 1,
1995, and held no SAIF-assessable depos-
its before January 1, 1993;
(ii) is a Federal savings bank which—
(I) was established de novo in
April 1994 in order to acquire the de-
posits of a savings association which
was in default or in danger of default;
and
(II) received minority interim
capital assistance from the Resolution
Trust 
Corporation 
under 
section
21A(w) of the Federal Home Loan
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Bank Act in connection with the ac-
quisition of any such savings associa-
tion; or
(iii) is a savings association, the de-
posits of which are insured by the Savings
Association Insurance Fund, which—
(I) before January 1, 1987, was
chartered as a Federal savings bank
insured by the Federal Savings and
Loan Insurance Corporation for the
purpose of acquiring all or substan-
tially all of the assets and assuming
all or substantially all of the deposit
liabilities of a national bank in a
transaction consummated after July
1, 1986; and
(II) as of the date of that trans-
action, had assets of less than
$150,000,000.
(B) DEFINITION.—For purposes of this
paragraph, an institution shall be deemed to
have held SAIF-assessable deposits before Jan-
uary 1, 1993, if—
(i) it directly held SAIF-assessable de-
posits before that date; or
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(ii) it succeeded to, acquired, pur-
chased, or otherwise holds any SAIF-as-
sessable deposits as of the date of enact-
ment of this Act that were SAIF-assess-
able deposits before January 1, 1993.
(4) EXEMPT INSTITUTIONS REQUIRED TO PAY
ASSESSMENTS AT FORMER RATES.—
(A) PAYMENTS TO SAIF AND DIF.—Any in-
sured depository institution that the Board of
Directors exempts under this subsection from
paying the special assessment imposed under
this section shall pay semiannual assessments—
(i) during calendar years 1996, 1997,
and 1998, into the Savings Association In-
surance Fund, based on SAIF-assessable
deposits of that institution, at assessment
rates calculated under the schedule in ef-
fect for Savings Association Insurance
Fund members on June 30, 1995; and
(ii) during calendar year 1999—
(I) into the Deposit Insurance
Fund, based on SAIF-assessable de-
posits of that institution as of Decem-
ber 31, 1998, at assessment rates cal-
culated under the schedule in effect
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for Savings Association Insurance
Fund members on June 30, 1995; or
(II) in accordance with clause (i),
if the Bank Insurance Fund and the
Savings Association Insurance Fund
are not merged into the Deposit In-
surance Fund.
(B) OPTIONAL
PRO
RATA
PAYMENT
OF
SPECIAL
ASSESSMENT.—This paragraph shall
not apply with respect to any insured depository
institution (or successor insured depository in-
stitution) that has paid, during any calendar
year from 1997 through 1999, upon such terms
as the Corporation may announce, an amount
equal to the product of—
(i) 16.7 percent of the special assess-
ment that the institution would have been
required to pay under subsection (a), if the
Board of Directors had not exempted the
institution; and
(ii) the number of full semiannual pe-
riods remaining between the date of the
payment and December 31, 1999.
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(g) SPECIAL ELECTION FOR CERTAIN INSTITUTIONS
FACING HARDSHIP AS A RESULT OF THE SPECIAL AS-
SESSMENT.—
(1) ELECTION AUTHORIZED.—If—
(A) an insured depository institution, or
any depository institution holding company
which, directly or indirectly, controls such insti-
tution, is subject to terms or covenants in any
debt obligation or preferred stock outstanding
on September 13, 1995; and
(B) the payment of the special assessment
under subsection (a) would pose a significant
risk of causing such depository institution or
holding company to default or violate any such
term or covenant,
the depository institution may elect, with the ap-
proval of the Corporation, to pay such special as-
sessment in accordance with paragraphs (2) and (3)
in lieu of paying such assessment in the manner re-
quired under subsection (a).
(2) 1ST ASSESSMENT.—An insured depository
institution which makes an election under paragraph
(1) shall pay an assessment in an amount equal to
50 percent of the amount of the special assessment
that would otherwise apply under subsection (a), by