I
105TH CONGRESS
2D SESSION
H. R. 4364
To streamline the regulation of depository institutions, to safeguard confiden-
tial banking and credit union supervisory information, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 31, 1998
Mrs. ROUKEMA (for herself and Mr. VENTO) introduced the following bill;
which was referred to the Committee on Banking and Financial Services
A BILL
To streamline the regulation of depository institutions, to
safeguard confidential banking and credit union super-
visory information, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Depository Institution Regulatory Streamlining Act of
1998’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—IMPROVING MONETARY POLICY
Sec. 101. Payment of interest on reserve balances at Federal reserve banks.
Sec. 102. Amendments relating to savings and demand deposit accounts at de-
pository institutions.
Sec. 103. Transfer of Federal reserve surpluses.
Sec. 104. Study of reserve ratios for deposit insurance funds.
TITLE II—IMPROVING DEPOSITORY INSTITUTION MANAGEMENT
PRACTICES
Subtitle A—National Banks
Sec. 201. Authority to allow more than 25 directors.
Sec. 202. Loans on or purchases by institutions of their own stock.
Sec. 203. Expedited procedures for certain reorganizations.
Subtitle B—Savings Associations
Sec. 211. Noncontrolling investments by savings association holding companies.
Sec. 212. Streamlining thrift service company investment requirements.
Sec. 213. Repeal of dividend notice requirement.
Sec. 214. Updating of authority for community development investments.
Subtitle C—Other Institutions
Sec. 221. Prohibition on accrual to insiders of economic benefits from credit
union conversions.
TITLE 
III—STREAMLINING 
FEDERAL 
BANKING 
AGENCY 
RE-
QUIREMENTS AND ELIMINATION OF UNNECESSARY OR OUT-
DATED REQUIREMENTS
Sec. 301. ‘‘Plain English’’ requirement for Federal banking agency rules.
Sec. 302. Call report simplification.
Sec. 303. Purchased mortgage service rights.
Sec. 304. Judicial review of receivership appointment.
Sec. 305. Elimination of outdated statutory minimum capital requirements.
Sec. 306. Elimination of individual branch capital requirements.
Sec. 307. Amendment to shareholder notice provisions relating to consolidations
and mergers.
Sec. 308. Payment of interest in receiverships with surplus funds.
Sec. 309. Repeal of deposit broker notification and recordkeeping requirement.
Sec. 310. Allowances for certain extensions of credit to executive officers.
Sec. 311. Federal Reserve Act lending limits.
Sec. 312. Repeal of Bank Holding Company Act provision limiting savings
bank life insurance.
TITLE IV—DISCLOSURE SIMPLIFICATION
Sec. 401. Alternative disclosure for variable rate, open-ended home secured
credit.
Sec. 402. Alternative compliance methods for advertising credit terms.
TITLE V—BANK EXAMINATION REPORT PRIVILEGE ACT
Sec. 501. Amendment to the Federal Deposit Insurance Act.
Sec. 502. Amendment to Federal Credit Union Act.
TITLE VI—TECHNICAL CORRECTIONS
Sec. 601. Technical correction relating to deposit insurance funds.
Sec. 602. Rules for continuation of deposit insurance for member banks con-
verting charters.
Sec. 603. Waiver of citizenship requirement for national bank directors.
Sec. 604. Technical amendment to prohibition on Comptroller interests in na-
tional banks.
Sec. 605. Applicability of limitation to prior investments.
TITLE I—IMPROVING MONETARY
POLICY
SEC. 101. PAYMENT OF INTEREST ON RESERVE BALANCES
AT FEDERAL RESERVE BANKS.
(a) IN GENERAL.—Section 19(b) of the Federal Re-
serve Act (12 U.S.C. 461(b)) is amended by adding at
the end the following new paragraph:
‘‘(12) EARNINGS ON RESERVES.—
‘‘(A) IN GENERAL.—Balances maintained
at a Federal reserve bank by or on behalf of a
depository institution may receive earnings to
be paid by the Federal reserve bank at least
once each calendar quarter at a rate or rates
not to exceed the general level of short-term in-
terest rates.
‘‘(B) REGULATIONS
RELATING
TO
PAY-
MENTS AND DISTRIBUTION.—The Board may
prescribe regulations concerning—
‘‘(i) the payment of earnings in ac-
cordance with this paragraph;
‘‘(ii) the distribution of such earnings
to the depository institutions which main-
tain balances at such banks or on whose
behalf such balances are maintained; and
‘‘(iii) the responsibilities of depository
institutions, Federal home loan banks, and
the National Credit Union Administration
Central Liquidity Facility with respect to
the crediting and distribution of earnings
attributable to balances maintained, in ac-
cordance with subsection (c)(1)(B), in a
Federal reserve bank by any such entity on
behalf of depository institutions which are
not member banks.’’.
(b) AUTHORIZATION FOR PASS THROUGH RESERVES
FOR MEMBER BANKS.—Section 19(c)(1)(B) of the Fed-
eral Reserve Act (12 U.S.C. 461(c)(1)(B)) is amended by
striking ‘‘which is not a member bank’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
Section 19 of the Federal Reserve Act (12 U.S.C. 461)
is amended—
(1) in subsection (b)(4) (12 U.S.C. 461(b)(4)),
by striking subparagraph (C) and redesignating sub-
paragraphs (D) and (E) as subparagraphs (C) and
(D), respectively; and