(1) IN
GENERAL.—Strong organizing groups 
generally include diverse business and financial in-
terests and community involvement. An organizing 
group shall have the experience, competence, willing-
ness, and ability to be active in directing the pro-
posed bridging bank depository institution’s affairs 
in a safe and sound manner. The bridging bank de-
pository institution’s initial board of directors gen-
erally should be comprised of many, if not all, of the 
organizers. The business plan or operating plan and 
other information supplied in the application shall 
demonstrate an organizing group’s collective ability 
to establish and operate a successful bridging bank 
depository institution in the economic and competi-
tive conditions of the market to be served. Each or-
ganizer should be knowledgeable about the business 
plan or operating plan. 
(2) MANAGEMENT
SELECTION.—The initial 
board of directors shall select competent senior exec-
utive officers before the appropriate banking agency 
may grant final approval. As a condition of the char-
ter approval, the appropriate banking agency shall 
have the right to object to and preclude the hiring 
of any officer, or the appointment or election of any 
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director, for a 2-year period from the date the bridg-
ing bank depository institution commences business. 
(j) FINANCIAL RESOURCES.— 
(1) Each organizer shall have a history of re-
sponsibility, personal honesty, and integrity. Per-
sonal wealth is not a prerequisite to become an orga-
nizer or director of a bridging bank depository insti-
tution. 
(2) Any financial or other business arrange-
ment, direct or indirect, between the organizing 
group or other insider and the proposed bridging 
bank depository institution shall be on nonpref-
erential terms. 
(k) ORGANIZATIONAL EXPENSES.—Organizers are 
expected to contribute time and expertise to the organiza-
tion of the bridging bank depository institution. Orga-
nizers should not bill excessive charges to the bridging 
bank depository institution for professional and consulting 
services or unduly rely upon these fees as a source of in-
come. 
(l) NO CONTINGENCY FEES.—A proposed bridging 
bank depository institution shall not pay any fee that is 
contingent upon an appropriate banking agency decision. 
Organizational expenses for denied applications are the 
sole responsibility of the organizing group. 
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(m) BUSINESS PLAN OR OPERATING PLAN.— 
(1) IN GENERAL.— 
(A) SUBMISSION
REQUIRED.—Organizers 
of a proposed bridging bank depository institu-
tion shall submit a business plan or operating 
plan that adequately addresses the appropriate 
statutory and policy considerations. The plan 
shall reflect sound banking principles and dem-
onstrate realistic assessments of risk in light of 
economic and competitive conditions in the mar-
ket for serving the underbanked, the unbanked 
and consumers with credit scores at or below 
680. 
(B) OFFSETTING DEFICIENCIES.—The ap-
propriate banking agency shall offset defi-
ciencies in 1 factor by strengths in 1 or more 
other factors so long as the ability to serve the 
underbanked, the unbanked and consumers 
with credit scores at or below 680 is the most 
important factor and entitled to the greatest 
weight. 
(2) EARNINGS
PROSPECTS.—The organizing 
group shall submit pro forma balance sheets and in-
come statements as part of the business plan or op-
erating plan. 
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(3) MANAGEMENT.— 
(A) EVALUATION
OF
MANAGERIAL
ABIL-
ITY.—The organizing group shall include in the 
business plan or operating plan information suf-
ficient to permit the appropriate banking agen-
cy to evaluate the overall management ability of 
the organizing group, especially the ability to 
provide financial services to the underbanked, 
the unbanked, and consumers with credit scores 
at or below 680. 
(B) AGENCY OBJECTION TO PROPOSED OF-
FICER
OR
DIRECTOR.—The organizing group 
may not hire an officer or elect or appoint a di-
rector if the appropriate banking agency objects 
to that person at any time prior to the date the 
bridging bank depository institution commences 
business. 
(4) CAPITAL.—A proposed bridging bank de-
pository institution shall have initial capital of at 
least $10,000,000. 
(5) COMMUNITY SERVICE.— 
(A) The business plan or operating plan 
shall indicate the organizing group’s knowledge 
of and plans for serving the underbanked, the 
unbanked and consumers with credit scores at 
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or below 680. The organizing group shall evalu-
ate the banking needs of the underbanked, the 
unbanked and consumers with credit scores at 
or below 680. The business plan or operating 
plan shall demonstrate how the proposed bridg-
ing bank depository institution responds to 
those needs consistent with the safe and sound 
operation of the bridging bank depository insti-
tution. 
(B) As part of its business plan or oper-
ating plan, the organizing group shall submit a 
statement that demonstrates its plans to 
achieve Community Reinvestment Act objec-
tives. 
(C) Because community support is impor-
tant to the long-term success of a bridging 
bank depository institution, the organizing 
group shall include plans for attracting and 
maintaining community support. 
(6) SAFETY
AND
SOUNDNESS.—The business 
plan or operating plan shall demonstrate that the or-
ganizing group is aware of, and understands, Fed-
eral and State banking laws and regulations, and 
safe and sound banking operations and practices in 
the context of serving the needs of the underbanked, 
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the unbanked and consumers with credit scores at or 
below 680. 
(7) PROCEDURES.— 
(A) PREFILING
MEETING.—The appro-
priate banking agency shall require a prefiling 
meeting with the organizers of a proposed 
bridging bank depository institution before the 
organizers file an application. 
(B) 
BUSINESS
PLAN
OR
OPERATING 
PLAN.—An organizing group shall file a busi-
ness plan or operating plan that addresses the 
requirements of the appropriate banking agen-
cy. 
(C) CONTACT
PERSON.—The organizing 
group shall designate a contact person to rep-
resent the organizing group in all contacts with 
the appropriate banking agency. The contact 
person shall be an organizer and proposed di-
rector of the new bridging bank depository in-
stitution or another person approved by the ap-
propriate banking agency. 
(8) DECISION NOTIFICATION.—The appropriate 
banking agency shall notify the contact person in 
writing of its decision on an application. 
(9) ACTIVITIES.— 
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quire the use of risk weights or capital adequacy measures 
for a bridging bank depository institution that makes the 
bridging bank depository institution uncompetitive, makes 
its products and services too expensive for the under-
banked, the unbanked or consumers with a credit score 
at or below 680 or otherwise prevents the bridging bank 
depository institution from serving the underbanked, the 
unbanked and consumers with a credit score at or below 
680. Neither the Federal Deposit Insurance Corporation 
nor the National Credit Union Administration Board shall 
discriminate in its insurance premium charges against 
bridging bank depository institutions and shall charge 
bridging bank depository institutions the same premium 
that it would otherwise charge a traditional community 
bank or traditional credit union, as appropriate, which 
does not serve the underbanked, the unbanked or con-
sumers with a credit score at 680 or below. 
SEC. 6. COORDINATION AND PROMOTION OF THE COMMU-
NITY REINVESTMENT ACT OF 1977. 
To strengthen the effectiveness of the Community 
Reinvestment Act of 1977 and to encourage financial in-
stitutions subject to the Community Reinvestment Act of 
1977 to support the efforts of bridging bank depository 
institutions, the appropriate banking agencies shall grant 
the highest level of weighted Community Reinvestment 
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Act of 1977 credit to financial institutions subject to such 
Act in each case, as appropriate, under the lending test 
where a loan is made to a bridging bank depository insti-
tution, under the investment test where an investment is 
made in a bridging bank depository institution, under the 
service test where a service is provided to a bridging bank 
depository institution and under the community develop-
ment test when a donation is made to a bridging bank 
depository institution. 
SEC. 7. ADDITIONAL POWERS OF A BRIDGING BANK DEPOS-
ITORY INSTITUTION. 
In addition to the powers granted herein and in any 
regulations issued by the appropriate banking agency, 
each bridging bank depository institution shall have all the 
powers otherwise applicable to a national bank, if the 
bridging bank depository institution is chartered by the 
Comptroller of the Currency, to a savings association, if 
the bridging bank depository institution is chartered by 
the Director of the Office of Thrift Supervision, to an in-
sured credit union, if the bridging bank depository institu-
tion is chartered by the National Credit Union Adminis-
tration, or to a State bank, if the bridging bank depository 
institution is chartered by a State bank supervisor, and, 
except as provided in this Act or in any regulations issued 
pursuant to the authority granted in section 106, shall be 
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subject to the regulations otherwise applicable to such na-
tional bank, savings association, insured credit union or 
State bank, as the case may be. 
SEC. 8. REPORTS TO THE CONGRESS. 
Before the expiration of the 120-day period beginning 
on the date of the first issuance of a charter pursuant 
to this Act, and annually thereafter, each appropriate Fed-
eral banking agency shall report to the appropriate com-
mittees of the Congress, with respect to each such pe-
riod— 
(1) an overview of actions taken by each such 
Federal banking agency in furtherance of the pur-
poses of this Act; 
(2) an overview of actions taken by bridging 
bank depository institutions to serve the needs of the 
underbanked, the unbanked, and consumers with 
credit scores at or below 680; 
(3) a description of the impact of the exercise 
of such authority on the financial system, supported, 
to the extent possible, by specific data; 
(4) an analysis of the effectiveness of the Grad-
uation Program, including an analysis of any 
progress made from 1 credit scoring band to a high-
er credit scoring band and the number of consumers 
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who moved from 1 credit scoring band to a higher 
credit scoring band; 
(5) a description of challenges that remain in 
the financial system for the underbanked, the 
unbanked, and consumers with a credit score of 680 
or below; and 
(6) recommendations on additional actions that 
should be taken to further the purposes of this Act. 
SEC. 9. REGULATIONS. 
(a) REGULATIONS REQUIRED.—Before the end of the 
180-day period beginning on the date of the enactment 
of this Act, each appropriate Federal banking agency, 
after consultation with each other appropriate Federal 
banking agency, and public notice and an opportunity for 
comment, shall prescribe regulations to carry out the pur-
poses and provisions of this chapter, including regulations 
for the chartering of bridging bank depository institutions 
and prescribing the form and content of any application 
to be filed with such appropriate Federal banking agency 
in connection therewith. 
(b) EFFECTIVE DATE OF REGULATIONS.—The regu-
lations prescribed under subsection (a) shall take effect 
not later than 1 month after the publication in final form. 
(c) EXPEDITED CONSIDERATION.—Each appropriate 
Federal banking agency with chartering authority shall ex-
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pedite its consideration of applications for the chartering 
of bridging bank depository institutions. The Federal De-
posit Insurance Corporation and the National Credit 
Union Administration Board shall expedite its consider-
ation of applications for deposit insurance with respect to 
applications to form de novo bridging bank depository in-
stitutions. The Board of Governors of the Federal Reserve 
System shall expedite its consideration of membership to 
the Federal Reserve System by bridging bank depository 
institutions. 
SEC. 10. CORRESPONDING CHANGES TO INTERNAL REV-
ENUE CODE OF 1986. 
(a) The Internal Revenue Code of 1986 is amended 
by inserting after section 103 the following new section: 
‘‘§ 103A. Interest on bridging bank depository institu-
tion deposits 
‘‘Interest on savings and other interest bearing de-
posits paid by bridging bank depository institutions (with-
in the meaning of the Bridging Bank to Recovery Act of 
2009) shall be exempt from income taxation now or here-
after imposed by the United States or by any State, terri-
torial, or local taxing authority.’’. 
(b) Section 108 of the Internal Revenue Code of 1986 
(relating to income from discharge of indebtedness) is 
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amended by adding at the end the following new sub-
section: 
‘‘(l) BRIDGING BANK DEPOSITORY INSTITUTIONS.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
61, income from the discharge of indebtedness in 
connection with the modification or repurchase of a 
subprime debt instrument shall not be included in 
gross income if a bridging bank depository institu-
tion (within the meaning of the Bridging Bank to 
Recovery Act of 2009) is the beneficial owner of 
such subprime debt instrument at the time of the 
modification or repurchase. 
‘‘(2) SUBPRIME DEBT INSTRUMENT.—For pur-
poses of this subsection, the term ‘subprime debt in-
strument’ shall be defined from time to time by the 
Financial Institutions Examination Council. 
‘‘(3) AUTHORITY
TO
PRESCRIBE
REGULA-
TIONS.—The Secretary may prescribe such regula-
tions as may be necessary or appropriate for pur-
poses of applying this subsection.’’. 
(c) Section 1001 of the Internal Revenue Code of 
1986 (relating to the determination of amount of and rec-
ognition of gain or loss) is amended by adding at the end 
the following new subsection: 
‘‘(f) BRIDGING BANK DEPOSITORY INSTITUTIONS.— 
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‘‘(1) IN GENERAL.—A modification of the terms 
of a subprime debt instrument shall not result in a 
sale or other disposition of property within the 
meaning of this section if a bridging bank depository 
institution (within the meaning of the Bridging 
Bank to Recovery Act of 2009) is the beneficial 
owner of such subprime debt instrument at the time 
of the modification. 
‘‘(2) SUBPRIME DEBT INSTRUMENT.—For pur-
poses of this subsection, the term ‘subprime debt in-
strument’ shall be defined from time to time by the 
Financial Institutions Examination Council.’’. 
Æ 
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