101
(3) in paragraph (9) (as so redesignated), by
striking 
‘‘$175,000,000’’ 
and 
inserting
‘‘$250,000,000’’.
(b) INFLATION ADJUSTMENT.—Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is
amended by inserting after paragraph (10) (as so redesig-
nated in subsection (a)(1) of this section) the following
new paragraph:
‘‘(11) ANNUAL CPI ADJUSTMENT.—The dollar
amount in this section shall be adjusted annually
after December 31, 1994, by the annual percentage
increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.’’.
(c) COORDINATED FEDERAL AND STATE EXAMINA-
TIONS.—The Federal banking agencies (as defined in sec-
tion 3 of the Federal Deposit Insurance Act) shall submit
semiannual reports to the Congress on the progress made
by such agencies in implementing the requirements of sec-
tion 10(d)(6) of the Federal Deposit Insurance Act until
such agencies submit a final report that—
(1) the examination system provided for in such
section is in place; and
102
(2) such system provides for full coordination of
examinations of State depository institutions with
State bank supervisors.
SEC. 227. COST REIMBURSEMENT.
Section 1115 of the Right to Financial Privacy Act
(12 U.S.C. 3415) is amended by inserting ‘‘(including cor-
porate customers)’’ after ‘‘pertaining to a customer’’.
SEC. 228. IDENTIFICATION OF FOREIGN NONBANK FINAN-
CIAL INSTITUTION CUSTOMERS.
(a) IN GENERAL.—Section 5327(a)(1) of title 31,
United States Code, is amended to read as follows:
‘‘(1) is a financial institution (other than a for-
eign bank (as defined in section 101(b) of the Inter-
national Banking Act of 1978)) which is a foreign
person; and’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The heading for section 5327 of title 31, United States
Code, is amended by inserting ‘‘FOREIGN NONBANK’’
after ‘‘OF’’.
(c) CLERICAL AMENDMENT.—The table of sections
for chapter 53 of title 31, United States Code, is amended
by striking the item relating to section 5327 and inserting
the following new item:
‘‘5327. Identification of foreign nonbank financial institutions.’’.
103
SEC. 229. PAPERWORK REDUCTION REVIEW.
Not later than 180 days after the date of enactment
of this Act, each appropriate Federal banking agency and
the National Credit Union Administration, in consultation
with insured depository institutions, insured credit unions,
and other interested parties, shall—
(1) review the extent to which current regula-
tions require insured depository institutions and in-
sured credit unions to produce unnecessary internal
written policies; and
(2) eliminate such requirements, where appro-
priate.
For purposes of this section, the terms ‘‘insured deposi-
tory institution’’ and ‘‘appropriate Federal banking agen-
cy’’ have the same meanings as in section 3 of the Federal
Deposit Insurance Act and the term ‘‘insured credit
union’’ has the same meaning as in section 101(7) of the
Federal Credit Union Act.
SEC. 230. DAILY CONFIRMATIONS FOR HOLD-IN-CUSTODY
REPURCHASE TRANSACTIONS.
Before the end of the 1-year period beginning on the
date of the enactment of this Act, the Secretary of the
Treasury shall revise the regulation under section 15C of
the Securities Exchange Act of 1934 relating to the obli-
gations of financial institutions and of brokers and dealer
registered under such Act holding custody of securities
104
subject to a repurchase agreement to confirm, daily and
in writing, the securities that are subject to such repur-
chase agreement. Such revision shall permit the
counterparty to such agreement to waive in writing the
right to obtain such daily written confirmation if the
counterparty has received a clear and conspicuous disclo-
sure before entering into any side agreement, in a form
prescribed by the Secretary, that adequately informs the
counterparty of the benefits of receiving such daily written
confirmations.
SEC. 231. REQUIRED REGULATORY REVIEW OF REGULA-
TIONS.
(a) IN GENERAL.—Not less frequently than once
every 10 years, the Financial Institutions Examination
Council (hereafter in this section referred to as the ‘‘Coun-
cil’’) and each appropriate Federal banking agency (as de-
fined in section 3(q) of the Federal Deposit Insurance
Act) represented on the Council shall conduct a review of
all regulations prescribed by the Council or by any such
agency, respectively, in order to identify outdated or other-
wise unnecessary regulatory requirements imposed upon
insured depository institutions.
(b) PROCESS.—In conducting the review under sub-
section (a), the Council or the appropriate Federal bank-
ing agency shall—
105
(1) categorize the regulations by type (such as
consumer regulations, safety and soundness regula-
tions, or such other designations as determined by
the Council); and
(2) at regular intervals, provide notice and so-
licit public comment on a particular category or cat-
egories of regulations, requesting commentators to
identify areas of the regulations that are outdated,
unnecessary, or unduly burdensome.
(c) COMPLETE REVIEW.—The Council or the appro-
priate Federal banking agency shall ensure that the notice
and comment period described in subsection (b)(2) is con-
ducted with respect to all regulations described in sub-
section (a) not less frequently than once every 10 years.
(d) REGULATORY RESPONSE.—The Council or the
appropriate Federal banking agency shall—
(1) publish in the Federal Register a summary
of the comments received under this section, identi-
fying significant issues raised and providing com-
ment on such issues; and
(2) eliminate unnecessary regulations to the ex-
tent that such action is appropriate.
(e) REPORT TO CONGRESS.—Not later than 30 days
after carrying out subsection (d)(1), the Council shall pro-
vide to the Congress a report, which shall include—
106
(1) a summary of any significant issues raised
by public comments received by the Council and the
appropriate Federal banking agencies under this sec-
tion and the relative merits of such issues; and
(2) an analysis of whether the appropriate Fed-
eral banking agency involved is able to address the
regulatory burdens associated with such issues by
regulation, or whether such burdens must be ad-
dressed by legislative action.
SEC. 232. COUNTRY RISK REQUIREMENTS.
Subsections (a)(1) and (b) of section 905 of the
International Lending Supervision Act of 1983 (12 U.S.C.
3904) are amended by striking ‘‘shall’’ and inserting
‘‘may’’.
SEC. 233. AUDIT COSTS.
(a) IN GENERAL.—
(1) AUDITOR
ATTESTATIONS.—Section 36 of
the Federal Deposit Insurance Act (12 U.S.C.
1831m) is amended—
(A) by striking subsection (e); and
(B) by redesignating subsections (f), (g),
(h), (i), and (j) as subsections (e), (f), (g), (h),
and (i), respectively.
(2) PUBLIC AVAILABILITY.—Section 36(a)(3) of
the Federal Deposit Insurance Act (12 U.S.C.
107
1831m(a)(3)) is amended by inserting at the end the
following new sentence: ‘‘Notwithstanding the pre-
ceding sentence, the Corporation and the appro-
priate Federal banking agencies may designate cer-
tain information as privileged and confidential and
not available to the public.’’.
(b) EXEMPTION
FOR
WELL-CAPITALIZED
AND
WELL-MANAGED
INSURED
DEPOSITORY
INSTITU-
TIONS.—Section 36 of the Federal Deposit Insurance Act
(12 U.S.C. 1831m) (as amended by subsection (a) of this
section) is amended by adding at the end the following
new subsection:
‘‘(j) EXEMPTION
FOR
WELL-CAPITALIZED
AND
WELL-MANAGED
INSURED
DEPOSITORY
INSTITU-
TIONS.—No provision of this section other than sub-
sections (d) and (f) shall apply with respect to any insured
depository institution which has a CAMEL rating of 1 (or
an equivalent rating under a equivalent rating system).’’.
(c) INDEPENDENT AUDIT COMMITTEES.—Section
36(f)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1831m(g)(1)) (as so redesignated by subsection (a)(1)(B)
of this section) is amended—
(1) in subparagraph (A), by striking ‘‘entirely
made up of outside directors who are independent of
the management of the institution, and who’’ and in-
108
serting ‘‘not less than 1⁄2 of the members of which
shall be outside directors and the members of
which’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(D) EXEMPTION AUTHORITY.—
‘‘(i) IN
GENERAL.—An appropriate
Federal banking agency may, by order or
regulation, permit an insured depository
institution to maintain an independent
audit committee less than 1⁄2 of the mem-
bers of which are outside directors, if the
agency determines that the institution has
encountered hardships in recruiting and
retaining a sufficient number of outside di-
rectors to serve on such committee.
‘‘(ii) FACTORS TO BE CONSIDERED.—
In determining whether an insured deposi-
tory institution has encountered the hard-
ships referred to in clause (i), the appro-
priate Federal banking agency shall con-
sider factors such as the size of the institu-
tion and the extent to which the institution
has made a good faith effort to elect or
name additional competent outside direc-
109
tors to the board of directors of the insti-
tution who may serve on the independent
audit committee.’’.
SEC. 234. STANDARDS FOR DIRECTOR AND OFFICER LI-
ABILITY.
Section 3(u) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(u)) is amended—
(1) by redesignating subparagraphs (A), (B),
and (C) of paragraph (4) as clauses (i), (ii), and
(iii), respectively;
(2) by redesignating paragraphs (1), (2), (3),
and (4) as subparagraphs (A), (B), (C), and (D), re-
spectively, and indenting the left margin of such
subparagraphs appropriately;
(3) in subparagraph (A) (as so redesignated),
by inserting ‘‘(other than an outside director)’’ after
‘‘director’’;
(4) in subparagraph (C) (as so redesignated),
by inserting ‘‘(other than an outside director)’’ after
‘‘any other person’’;
(5) by striking ‘‘term ‘institution-affiliated
party’ means’’ and inserting ‘‘term ‘institution-affili-
ated party’—
‘‘(1) means—’’;
110
(6) by striking the period at the end of sub-
paragraph (D) of paragraph (1) (as so redesignated)
and inserting ‘‘; and’’; and
(7) by adding at the end the following new
paragraph:
‘‘(2) includes any outside director which the ap-
propriate Federal banking agency determines, on the
basis of such factors as the agency (in the agency’s
sole discretion) determines to be appropriate, shall
be treated as an institution-affiliated party for pur-
poses of section 8, after taking into consideration
that an outside director may have a different level
of knowledge of the management and operation of
an insured depository institution than a director who
is not an outside director.’’.
SEC. 235. FOREIGN BANK APPLICATIONS.
(a) PROVISIONS RELATING TO ESTABLISHMENT OF
BANK OFFICES.—Section 7(d) of the International Bank-
ing Act of 1978 (12 U.S.C. 3105(d)) is amended—
(1) in paragraph (2), by striking ‘‘The’’ and in-
serting ‘‘Except as provided in paragraph (6), the’’;
(2) in paragraph (5), by striking ‘‘Consistent
with the standards for approval in paragraph (2),
the’’ and inserting ‘‘The’’; and
111
(3) by adding at the end the following new
paragraphs:
‘‘(6) EXCEPTION.—
‘‘(A) IN GENERAL.—If the Board is unable
to find under paragraph (2) that a foreign bank
is subject to comprehensive supervision or regu-
lation on a consolidated basis by the appro-
priate authorities in its home country, the
Board may nevertheless approve an application
under paragraph (1) by such foreign bank if—
‘‘(i) the appropriate authorities in the
home country of such foreign bank are
working to establish arrangements for the
consolidated supervision of such bank; and
‘‘(ii) all other factors are consistent
with approval.
‘‘(B) 
ADDITIONAL
CONDITIONS.—The
Board, after requesting and considering the
views of the appropriate State bank supervisor
or the Comptroller of the Currency, as the case
may be, may impose such conditions or restric-
tions relating to activities or business oper-
ations of the proposed branch, agency, or com-
mercial lending company subsidiary, including
112
restrictions on sources of funding, as are con-
sidered appropriate in the public interest.
‘‘(C) MODIFICATION
OF
CONDITIONS.—
Any condition or restriction imposed by the
Board under this subsection in connection with
the approval of an application may be varied or
withdrawn where such modification is consistent
with the public interest.
‘‘(7) TIME PERIOD FOR BOARD ACTION.—
‘‘(A) FINAL
ACTION.—The Board shall
take final action on any application under para-
graph (1) within 180 days of receipt of the ap-
plication, except that the Board may extend for
an additional 180 days the period within which
to take final action on such application, after
providing notice of, and the reasons for, the ex-
tension to the applicant foreign bank and any
appropriate State bank supervisor or the Comp-
troller of the Currency, as the case may be.
‘‘(B) FAILURE
TO
SUBMIT
INFORMA-
TION.—The Board may deny any application if
it has not received information requested from
the applicant foreign bank or appropriate au-
thorities in the home country in sufficient time
to permit the Board to evaluate such informa-
113
tion adequately within the time periods for final
action set forth in subparagraph (A).
‘‘(C) WAIVER.—A foreign bank may waive
the applicability of subparagraph (A) with re-
spect to any such application.’’.
(b) PROVISION RELATING TO TERMINATION
OF
BANK OFFICES.—Section 7(e)(1)(A) of the International
Banking Act of 1978 (12 U.S.C. 3105(e)(1)(A)) is amend-
ed—
(1) by striking ‘‘(A)’’ and inserting ‘‘(A)(i)’’;
(2) by striking ‘‘; or’’ and inserting ‘‘; and’’;
and
(3) by inserting at the end the following new
clause:
‘‘(ii) the appropriate authorities in the
home country are not making progress in estab-
lishing arrangements for the comprehensive su-
pervision or regulation of such foreign bank on
a consolidated basis; or’’.
(c) UNIFORM TERMINATIONS OF FOREIGN BANK OF-
FICES, AGENCIES, BRANCHES, AND SUBSIDIARIES BY THE
FEDERAL RESERVE SYSTEM.—
(1) IN GENERAL.—Section 7(e)(1) of the Inter-
national 
Banking 
Act 
of 
1978 
(12 
U.S.C.
3105(e)(1)) is amended—
114
(A) by inserting ‘‘or the Comptroller of the
Currency’’ after ‘‘State bank supervisor’’;
(B) by inserting ‘‘or a Federal branch or
agency’’ after ‘‘commercial lending company
subsidiary’’ the first place such term appears;
and
(C) in the last sentence, by inserting ‘‘or
a Federal branch or agency’’ after ‘‘commercial
lending company subsidiary’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—Section 7(e) of the International Banking
Act of 1978 (12 U.S.C. 3105(e)) is amended—
(A) by striking paragraph (5); and
(B) by redesignating paragraphs (6) and
(7) as paragraphs (5) and (6), respectively.
SEC. 236. DUPLICATE EXAMINATION OF FOREIGN BANKS.
Section 7(c)(1) of the International Banking Act of
1978 (12 U.S.C. 3105(c)(1)) is amended—
(1) by adding after clause (ii) of subparagraph
(B) the following new clause:
‘‘(iii) AVOIDANCE OF DUPLICATION.—
In exercising its authority under this para-
graph, the Board shall take all reasonable
measures to reduce burden and avoid un-
necessary duplication of examinations.’’;
115
(2) by striking subparagraph (C) and inserting
the following:
‘‘(C) ON-SITE EXAMINATION.—Each Fed-
eral branch or agency, and each State branch
or agency, of a foreign bank shall be subject to
on-site examination by a Federal banking agen-
cy or State bank supervisor as frequently as
would a national bank or State bank, respec-
tively, by its appropriate Federal banking agen-
cy.’’; and
(3) by amending subparagraph (D) to read as
follows:
‘‘(D) COST OF EXAMINATIONS.—The cost
of any examination undertaken pursuant to
subparagraph (A) shall be assessed against and
collected from the foreign bank or the foreign
company that controls the foreign bank, as the
case may be, but only to the same extent that
fees are collected by the Board for examination
of any State member insured bank.’’.
SEC. 237. HIGH-COST MORTGAGES.
(a) FEDERAL RESERVE SURVEY AND STUDY.—
(1) IN GENERAL.—During the period beginning
180 days after the date of enactment of this Act and
ending 2 years after that date of enactment, the
116
Board of Governors of the Federal Reserve System
shall conduct an empirical survey and study and
submit to the Congress a report, including rec-
ommendations for the enactment or repeal of any
appropriate legislation, regarding the national mar-
ket for mortgages covered under section 103(aa) of
the Truth in Lending Act.
(2) COMPETITION
AND
CREDIT
AVAILABIL-
ITY.—The survey shall seek to ascertain whether
competition in the market for mortgages covered
under section 103(aa) of the Truth in Lending Act
has been enhanced or impaired by the Home Owner-
ship and Equity Protection Act of 1994, as well as
an assessment of the impact of that Act on lenders,
consumers, and the secondary mortgage market for
refinanced loans and home equity loans, particularly
in the area of credit availability.
(3) ABUSIVE AND FRAUDULENT PRACTICES.—
The survey, which shall include consumers and state
regulators, shall also identify both abusive and
fraudulent practices in the market for mortgages
covered under section 103(aa) of the Truth in Lend-
ing Act, as well as the type of entities and individ-
uals actually responsible for these practices.
117
(b) REGULATORY TOLERANCES
FOR
DE MINIMUS
CHANGES.—Section 129(b)(2) of the Truth in Lending
Act (15 U.S.C. 1639(b)(2)) is amended by adding at the
end the following new subparagraph:
‘‘(C) DE MINIMUS CHANGES.—A creditor
shall not be required under this section to make
any new disclosure under this section as a re-
sult of—
‘‘(i) any change in the regular pay-
ment amount of 2 percent or less from the
initially disclosed regular payment amount;
or
‘‘(ii) any change in 3d party fees or
disbursements which are made to pay off
creditors which are financed under the
transaction.’’.
(c) TIME OF DISCLOSURES.—Section 129(b) of the
Truth in Lending Act (15 U.S.C. 1639(b)) is amended
by adding at the end the following new paragraph:
‘‘(4) TIME
OF
DISCLOSURES
FOR
CERTAIN
TRANSACTIONS.—Notwithstanding paragraph (1), in
the case of a transaction which is covered under sec-
tion 103(aa) and subject to section 125, the disclo-
sures required by this section may be made by the
118
creditor at any time before the consummation of the
transaction.’’.
(d) REMOVAL OF RESTRICTION ON REGULATIONS.—
The 2d sentence of section 105(a) of the Truth in Lending
Act (15 U.S.C. 1604(a)) is amended by striking ‘‘Except
in the case of a mortgage referred to in section 103(aa),
these’’ and inserting ‘‘The’’.
SEC. 238. STREAMLINING FDIC APPROVAL OF NEW STATE
BANK POWERS.
(a) IN GENERAL.—Section 24(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1831a(a)) is amended to
read as follows:
‘‘(a) ACTIVITIES GENERALLY.—
‘‘(1) IN GENERAL.—An insured State bank may
not engage as principal in any type of activity that
is not permissible for a national bank unless—
‘‘(A) the bank has given the Corporation
written notice of the bank’s intention to engage
in such activity at least 60 days before com-
mencing to engage in the activity and within
such 60-day period (or within the extended pe-
riod provided under paragraph (2)) the Cor-
poration has not disapproved the activity; and
‘‘(B) the State bank is, and continues to
be, in compliance with applicable capital stand-