170
(2) In section 3(f)(5), by striking ‘‘bank holding
company’’ the first and second time such term ap-
pears and inserting ‘‘financial services holding com-
pany’’.
(3) In section 4(i)(3)(A), by striking ‘‘is ac-
quired’’ and inserting ‘‘was acquired’’.
(4) By striking ‘‘bank holding companies’’ each
place such appears in the following sections and in-
serting ‘‘financial services holding companies’’:
(A) Section 3(d).
(B) Section 4(f).
(C) Section 7(a).
(5) By striking ‘‘bank holding company’s’’ each
place such term appears in section 4(c)(14) and in-
serting ‘‘financial services holding company’s’’.
(6) By striking ‘‘bank holding company’’ each
place such term appears in the following sections
and inserting ‘‘financial services holding company’’:
(A) Subsections (a), (d), (e), (g), (h), and
(o) of section 2.
(B) Subsections (a), (b), (d), (f)(1), (f)(2),
and (f)(3) of section 3.
(C) Subsections (a), (d), (e), (g), (h), and
(j) of section 4.
171
(D) Clause (ii) in the portion of section
4(c) which precedes paragraph (1) of such sec-
tion.
(E) Paragraphs (2), (3), (7), (8), (10),
(11), (12)(A), and (14) of section 4(c).
(F) Paragraphs (4), (5), and (9) of section
4(f).
(G) Paragraphs (1) and (2) of section 4(i).
(H) Sections 5, 7(b), 8, and 11.
(7) In section 4(f)(1), by striking ‘‘bank holding
company’’ the second place such term appears and
inserting ‘‘financial services holding company’’.
(8) In the headings for section 3(f) and 4(f), by
striking ‘‘BANK HOLDING’’ and inserting ‘‘FINAN-
CIAL SERVICES HOLDING’’.
(9) In the heading the heading for section
2(o)(7), by striking ‘‘BANK’’ and inserting ‘‘FINAN-
CIAL SERVICES’’.
(g) TREATMENT OF EXISTING BANK HOLDING COM-
PANIES.—Section 2(a)(6) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841(a)(6)) is amended by insert-
ing at the end the following: ‘‘Any company that was a
bank holding company on the day before the date of enact-
ment of the Financial Institutions Regulatory Relief Act
of 1996 shall, for purposes of this Act, be deemed to be
172
a financial services holding company as of the date on
which the company became a bank holding company.’’.
(h) OTHER REFERENCES.—Any reference in any
Federal law to ‘‘bank holding company’’ or ‘‘bank holding
companies’’ as those terms were defined under the Bank
Holding Company Act of 1956 before the enactment of
this Act shall be deemed to include a reference to ‘‘finan-
cial services holding company’’ and ‘‘financial services
holding companies’’, respectively, as such terms are de-
fined under the Financial Services Holding Company Act
of 1996.
SEC. 506. CONFORMING AMENDMENTS TO THE BANK HOLD-
ING COMPANY ACT AMENDMENTS OF 1970.
Section 106 of the Bank Holding Company Act
Amendments of 1970 (12 U.S.C. 1971 through 1978) is
amended by striking ‘‘bank holding company’’ each place
such term appears and inserting ‘‘financial services hold-
ing company’’.
SEC. 507. CREDIT CARDS FOR BUSINESS PURPOSES.
Section 2(c)(2)(F) of the Bank Holding Company Act
of 1956 (relating to the definition of credit card banks)
is amended—
(1) in clause (i), by inserting ‘‘including the
provision of credit card accounts for business pur-
poses’’ before the semicolon; and
173
(2) in clause (v), by inserting ‘‘(other than the
provision of credit card accounts for business pur-
poses in connection with the credit card operations
referred to in clause (i))’’ before the period.
SEC. 508. 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.
‘‘(3) GOVERNMENT-SPONSORED
ENTERPRISE
DEFINED.—For purposes of this subsection, the
term ‘Government-sponsored enterprise’ has the
174
meaning given to such term in section 1404(e)(1)(A)
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.’’.
(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.
‘‘(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)
175
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.
SEC. 509. PROVISIONS APPLICABLE TO LIMITED PURPOSE
BANKS.
(a) EXCEPTION TO RESTRICTION ON ASSET GROWTH
OF NONBANK BANKS.—
(1) IN GENERAL.—Section 4(f)(3) of the Bank
Holding 
Company 
Act 
of 
1956 
(12 
U.S.C.
1843(f)(3)) is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(D) EXCEPTION
TO
RESTRICTION
ON
ASSET
GROWTH, 
ACTIVITIES, 
AND
CERTAIN
CROSS-MARKETING RESTRICTIONS.—
‘‘(i) QUALIFICATION FOR EXCEPTION
FROM
GROWTH
RESTRICTION.—A bank
controlled by a company described in para-
graph (1) shall not be subject to the limi-
tation contained in subparagraph (B)(iv) if
the company meets the requirements of
this subparagraph and the requirements of
paragraph (14).
‘‘(ii) QUALIFICATION FOR EXCEPTION
FROM ACTIVITIES RESTRICTION.—Notwith-