day period beginning on the receipt of a request under 
subsection (a)— 
(1) approve, conditionally approve, or deny such 
request; and 
(2) notify the applicant of such decision and, if 
the agency denies the request— 
(A) provide the applicant with the reason 
for such denial; and 
(B) suggest changes to the request that, if 
adopted, would allow the agency to approve 
such request. 
(c) RESULT OF FAILURE TO ACT.—If an appropriate 
Federal banking agency fails to approve or deny a request 
within the 30-day period required under subsection (b), 
such request shall be deemed to be approved. 
SEC. 4. RURAL COMMUNITY DEPOSITORY INSTITUTION LE-
VERAGE RATIO. 
(a) IN GENERAL.—During the 3-year period begin-
ning on the date on which a rural depository institution 
became an insured depository institution, the Community 
Bank Leverage Ratio for the rural community bank shall 
be 8 percent. 
(b) PHASE-IN AUTHORITY.—The Federal banking 
agencies shall issue rules to phase-in the Community Bank 
Leverage Ratio described under subsection (a) with re-
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spect to a rural depository institution by setting lower 
Community Bank Leverage Ratio percentages during the 
first 2 years of the 3-year period described under sub-
section (a). 
(c) DEFINITIONS.—In this section: 
(1) COMMUNITY BANK LEVERAGE RATIO.—The 
term ‘‘Community Bank Leverage Ratio’’ has the 
meaning given that term under section 201(a) of the 
Economic Growth, Regulatory Relief, and Consumer 
Protection Act (12 U.S.C. 5371 note). 
(2) RURAL
DEPOSITORY
INSTITUTION.—The 
term ‘‘rural depository institution’’ means a deposi-
tory institution— 
(A) with total consolidated assets of less 
than $10,000,000,000; and 
(B) located in a rural area, as defined 
under section 1026.35(b)(iv)(A) of title 12, 
Code of Federal Regulations. 
SEC. 5. AGRICULTURAL LOAN AUTHORITY FOR FEDERAL 
SAVINGS ASSOCIATIONS. 
Section 5(c) of the Home Owners’ Loan Act (12 
U.S.C. 1464(c)) is amended— 
(1) in paragraph (1), by adding at the end the 
following: 
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‘‘(V) AGRICULTURAL LOANS.—Secured or 
unsecured loans for agricultural purposes.’’; and 
(2) in paragraph (2)(A), by striking ‘‘business, 
or agricultural’’ and inserting ‘‘or business’’. 
SEC. 6. STUDY ON DE NOVO INSURED DEPOSITORY INSTI-
TUTIONS. 
(a) STUDY.—The Federal banking agencies shall, 
jointly, carry out a study on— 
(1) the principal causes for the low number of 
de novo insured depository institutions in the 10- 
year period ending on the date of enactment of this 
Act; and 
(2) ways to promote more de novo insured de-
pository institutions in areas currently underserved 
by insured depository institutions. 
(b) REPORT TO CONGRESS.—Not later than the end 
of the 1-year period beginning on the date of enactment 
of this Act, the Federal banking agencies shall, jointly, 
issue a report to Congress containing all findings and de-
terminations made in carrying out the study required 
under subsection (a). 
SEC. 7. DEFINITIONS. 
In this Act, the terms ‘‘appropriate Federal banking 
agency’’, ‘‘depository institution’’, ‘‘depository institution 
holding company’’, ‘‘Federal banking agency’’, and ‘‘in-
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sured depository institution’’ have the meaning given those 
terms, respectively, under section 3 of the Federal Deposit 
Insurance Act. 
Æ 
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