‘‘(I) the amount any savings asso-
ciation may invest in any 1 project; 
and 
‘‘(II) the aggregate amount of in-
vestment of any savings association 
under this subparagraph. 
‘‘(v) FLEXIBLE
AGGREGATE
INVEST-
MENT LIMITATION.—The aggregate amount 
of investments of any savings association 
under this subparagraph may not exceed an 
amount equal to the sum of 5 percent of the 
savings association’s capital stock actually 
paid in and unimpaired and 5 percent of 
the savings association’s unimpaired sur-
plus, unless—
‘‘(I) the Director determines that 
the savings association is adequately 
capitalized; and 
‘‘(II) the Director determines, by 
order, that the aggregate amount of in-
vestments in a higher amount than the 
limit under this clause will pose no 
significant risk to the affected deposit 
insurance fund.
‘‘(vi) MAXIMUM
AGGREGATE
INVEST-
MENT LIMITATION.—Notwithstanding clause 
(v), the aggregate amount of investments of 
any savings association under this subpara-
graph may not exceed an amount equal to 
the sum of 10 percent of the savings associa-
tion’s capital stock actually paid in and 
unimpaired and 10 percent of the savings 
association’s unimpaired surplus. 
‘‘(vii) INVESTMENTS NOT SUBJECT TO 
OTHER LIMITATION ON QUALITY OF INVEST-
MENTS.—No obligation a Federal savings 
association acquires or retains under this 
subparagraph shall be taken into account 
for purposes of the limitation contained in 
section 28(d) of the Federal Deposit Insur-
ance Act on the acquisition and retention of 
any corporate debt security not of invest-
ment grade.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 5(c)(3)(A) of the Home Owners’ Loan Act (12 U.S.C. 
1464(c)(3)(A)) is amended to read as follows: 
‘‘(A) [Repealed.]’’.
SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL 
SAVINGS ASSOCIATIONS WITH NONDEPOSI-
TORY INSTITUTION AFFILIATES. 
Section 5(d)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1464(d)(3)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) MERGERS AND CONSOLIDATIONS WITH 
NONDEPOSITORY INSTITUTION AFFILIATES.—
‘‘(i) IN GENERAL.—Upon the approval 
of the Director, a Federal savings associa-
tion may merge with any nondepository in-
stitution affiliate of the savings association. 
‘‘(ii) RULE
OF
CONSTRUCTION.—No 
provision of clause (i) shall be construed 
as—
‘‘(I) affecting the applicability of 
section 18(c) of the Federal Deposit In-
surance Act; or 
‘‘(II) granting a Federal savings 
association any power or any author-
ity to engage in any activity that is 
not authorized for a Federal savings 
association under any other provision
of this Act or any other provision of 
law.’’. 
SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE-
QUIREMENT FOR SAVINGS ASSOCIATION SUB-
SIDIARIES OF SAVINGS AND LOAN HOLDING 
COMPANIES. 
Section 10(f) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(f)) is amended to read as follows: 
‘‘(f) DECLARATION
OF
DIVIDEND.—The Director 
may—
‘‘(1) require a savings association that is a sub-
sidiary of a savings and loan holding company to 
give prior notice to the Director of the intent of the 
savings association to pay a dividend on its guar-
anty, permanent, or other nonwithdrawable stock; 
and 
‘‘(2) establish conditions on the payment of divi-
dends by such a savings association.’’. 
SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR 
TRUST OWNERSHIP OF SAVINGS ASSOCIA-
TIONS. 
(a) IN GENERAL.—Section 10(a)(1)(C) of the Home 
Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is amend-
ed—
(1) by striking ‘‘trust,’’ and inserting ‘‘business 
trust,’’; and 
(2) by inserting ‘‘or any other trust unless by its 
terms it must terminate within 25 years or not later 
than 21 years and 10 months after the death of indi-
viduals living on the effective date of the trust,’’ after 
‘‘or similar organization,’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 10(a)(3) of the Home Owners’ Loan Act (12 U.S.C. 
1467a(a)(3)) is amended—
(1) by striking ‘‘does not include—’’ and all that 
follows through ‘‘any company by virtue’’ where such 
term appears in subparagraph (A) and inserting 
‘‘does not include any company by virtue’’; 
(2) by striking ‘‘; and’’ at the end of subpara-
graph (A) and inserting a period; and 
(3) by striking subparagraph (B). 
SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING 
PURCHASED MORTGAGE SERVICING RIGHTS. 
Section 5(t) of the Home Owners’ Loan Act (12 U.S.C. 
1464(t)) is amended—
(1) by striking paragraph (4) and inserting the 
following new paragraph: 
‘‘(4) [Repealed.]’’; and
(2) in paragraph (9)(A), by striking ‘‘intangible 
assets, plus’’ and all that follows through the period 
at the end and inserting ‘‘intangible assets.’’. 
SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL SAV-
INGS ASSOCIATIONS TO INVEST IN SMALL 
BUSINESS INVESTMENT COMPANIES. 
Subparagraph (D) of section 5(c)(4) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)(4)) is amended to read 
as follows: 
‘‘(D) SMALL BUSINESS INVESTMENT COMPA-
NIES.—Any Federal savings association may in-
vest in 1 or more small business investment com-
panies, or in any entity established to invest 
solely in small business investment companies 
formed under the Small Business Investment Act 
of 1958, except that the total amount of invest-
ments under this subparagraph may not at any 
time exceed the amount equal to 5 percent of 
capital and surplus of the savings association.’’. 
SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN 
AUTO LOANS. 
(a) IN GENERAL.—Section 5(c)(1) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)(1)) is amended by adding 
at the end the following new subparagraph:
‘‘(V) AUTO LOANS.—Loans and leases for 
motor vehicles acquired for personal, family, or 
household purposes.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING
TO QUALIFIED THRIFT INVESTMENTS.—Section 
10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12 U.S.C. 
1467a(m)(4)(C)(ii)) is amended by adding at the end the 
following new subclause: 
‘‘(VIII) Loans and leases for 
motor vehicles acquired for personal, 
family, or household purposes.’’.
SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS. 
Section 15(h) of the Securities Exchange Act of 
1934 (15 U.S.C. 78o(h)) is amended by adding at the 
end the following new paragraph: 
‘‘(4) SELLING AND OFFERING OF DEPOSIT PROD-
UCTS.—No law, rule, regulation, or order, or other 
administrative action of any State or political sub-
division thereof shall directly or indirectly require 
any individual who is an agent of 1 Federal savings 
association (as such term is defined in section 2(5) 
of the Home Owners’ Loan Act (12 U.S.C. 1462(5)) 
in selling or offering deposit (as such term is defined 
in section 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813(l)) products issued by such association
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) CEMETERY.—The term ‘cemetery’ 
means any land or structure used, or in-
tended to be used, for the interment of 
human remains in any form. 
‘‘(ii) CEMETERY OPERATOR.—The term 
‘cemetery operator’ means any person who 
contracts or accepts payment for merchan-
dise, endowment, or perpetual care services 
in connection with a cemetery. 
‘‘(iii) FUNERAL DIRECTOR.—The term 
‘funeral director’ means any person who 
contracts or accepts payment to provide or 
arrange—
‘‘(I) services for the final disposi-
tion of human remains; or 
‘‘(II) funeral services, property, or 
merchandise (including cemetery serv-
ices, property, or merchandise).’’. 
SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER REQUIRE-
MENT 
WITH 
RESPECT 
TO 
OUT-OF-STATE 
BRANCHES. 
Section 5(r)(1) of the Home Owners’ Loan Act (12 
U.S.C. 1464(r)(1)) is amended by striking the last sentence.
SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL 
LOANS. 
(a) ELIMINATION OF LENDING LIMIT ON SMALL BUSI-
NESS LOANS.—Section 5(c)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(c)(1)) is amended by inserting after 
subparagraph (V) (as added by section 208 of this title) 
the following new subparagraph: 
‘‘(W) 
SMALL
BUSINESS
LOANS.—Small 
business loans, as defined in regulations which 
the Director shall prescribe.’’. 
(b) INCREASE IN LENDING LIMIT ON OTHER BUSINESS 
LOANS.—Section 5(c)(2)(A) of the Home Owners’ Loan Act 
(12 U.S.C. 1464(c)(2)(A)) is amended by striking ‘‘, and 
amounts in excess of 10 percent’’ and all that follows 
through ‘‘by the Director’’. 
SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 
ASSOCIATIONS FOR FEDERAL COURT JURIS-
DICTION. 
Section 5 of the Home Owners’ Loan Act (12 U.S.C. 
1464) is amended by adding at the end the following new 
subsection: 
‘‘(x) HOME STATE CITIZENSHIP.—In determining 
whether a Federal court has diversity jurisdiction over a 
case in which a Federal savings association is a party, the 
Federal savings association shall be considered to be a cit-
izen only of the State in which such savings association 
has its main office.’’. 
SEC. 214. CLARIFICATION OF APPLICABILITY OF CERTAIN 
PROCEDURAL DOCTRINES. 
Section 11A(d) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821a(d)) is amended—
(1) by striking ‘‘LEGAL PROCEEDINGS.—Any 
judgment’’ and inserting ‘‘LEGAL PROCEEDINGS.—
‘‘(1) IN GENERAL.—Any judgment’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) CLARIFICATION OF APPLICABILITY OF CER-
TAIN PROCEDURAL DOCTRINES.—In any proceeding 
seeking a monetary recovery against the United 
States, or an agency or official thereof, based upon 
actions of the Federal Savings and Loan Insurance 
Corporation prior to its dissolution, or the Federal 
Home Loan Bank Board prior to its dissolution, and 
arising from the Financial Institutions Reform, Re-
covery, and Enforcement Act of 1989 or its implemen-
tation, and where any monetary recovery in such pro-
ceeding would be paid from the FSLIC Resolution 
Fund or any supplements thereto, neither the United 
States Court of Federal Claims, the United States 
Court of Appeals for the Federal Circuit, nor any
other court of competent jurisdiction shall dismiss, or 
affirm on appeal the dismissal of, the claims of any 
party seeking such monetary recovery, on the basis of 
res judicata, collateral estoppel, or any similar doc-
trine, defense, or rule of law, based upon any deci-
sion, opinion, or order of judgment entered by any 
court prior to July 1, 1996. Unless some other defense 
is applicable, in any such proceeding, the United 
States Court of Federal Claims, the United States 
Court of Appeals for the Federal Circuit, and any 
other court of competent jurisdiction shall review the 
merits of the claims of the party seeking such mone-
tary relief and shall enter judgment accordingly.’’.
TITLE III—CREDIT UNION 
PROVISIONS 
SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR-
IZED TO BECOME MEMBERS OF A FEDERAL 
HOME LOAN BANK. 
(a) IN GENERAL.—Section 4(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 
at the end the following new paragraph: 
‘‘(5) CERTAIN
PRIVATELY
INSURED
CREDIT 
UNIONS.—
‘‘(A) IN GENERAL.—A credit union which 
has been determined, in accordance with section
43(e)(1) of the Federal Deposit Insurance Act 
and subject to the requirements of subparagraph 
(B), to meet all eligibility requirements for Fed-
eral deposit insurance shall be treated as an in-
sured depository institution for purposes of de-
termining the eligibility of such credit union for 
membership in a Federal home loan bank under 
paragraphs (1), (2), and (3). 
‘‘(B) CERTIFICATION BY APPROPRIATE SU-
PERVISOR.—
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph and subject to clause (ii), a 
credit union which lacks Federal deposit in-
surance and which has applied for member-
ship in a Federal home loan bank may be 
treated as meeting all the eligibility require-
ments for Federal deposit insurance only if 
the appropriate supervisor of the State in 
which the credit union is chartered has de-
termined that the credit union meets all the 
eligibility requirements for Federal deposit 
insurance as of the date of the application 
for membership. 
‘‘(ii) 
CERTIFICATION
DEEMED 
VALID.—If, in the case of any credit union
to which clause (i) applies, the appropriate 
supervisor of the State in which such credit 
union is chartered fails to make a deter-
mination pursuant to such clause by the 
end of the 6-month period beginning on the 
date of the application, the credit union 
shall be deemed to have met the require-
ments of clause (i). 
‘‘(C) SECURITY
INTERESTS
OF
FEDERAL 
HOME
LOAN
BANK
NOT
AVOIDABLE.—Notwith-
standing any provision of State law authorizing 
a conservator or liquidating agent of a credit 
union to repudiate contracts, no such provision 
shall apply with respect to—
‘‘(i) any extension of credit from any 
Federal home loan bank to any credit union 
which is a member of any such bank pursu-
ant to this paragraph; or 
‘‘(ii) any security interest in the assets 
of such credit union securing any such ex-
tension of credit.’’. 
(b) COPIES OF AUDITS OF PRIVATE INSURERS OF 
CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE 
PROVIDED TO SUPERVISORY AGENCIES.—Section 43(a)(2)
of the Federal Deposit Insurance Act (12 U.S.C. 
1831t(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A)(i); 
(2) by striking the period at the end of clause 
(ii) of subparagraph (A) and inserting a semicolon; 
(3) by inserting the following new clauses at the 
end of subparagraph (A): 
‘‘(iii) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the private 
insurer, the National Credit Union Admin-
istration, not later than 7 days after that 
audit is completed; and 
‘‘(iv) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the private 
insurer which are members of a Federal 
home loan bank, the Federal Housing Fi-
nance Board, not later than 7 days after 
that audit is completed.’’; and 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(C) CONSULTATION.—The appropriate su-
pervisory agency of each State in which a pri-
vate deposit insurer insures deposits in an insti-
tution described in subsection (f)(2)(A) which—
‘‘(i) lacks Federal deposit insurance; 
and 
‘‘(ii) has become a member of a Fed-
eral home loan bank, 
shall provide the National Credit Union Admin-
istration, upon request, with the results of any 
examination and reports related thereto con-
cerning the private deposit insurer to which such 
agency may have in its possession.’’.
SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR 
CREDIT UNIONS. 
(a) IN GENERAL.—Section 124 of the Federal Credit 
Union Act (12 U.S.C. 1770) is amended—
(1) by striking ‘‘Upon application by any credit 
union’’ and inserting ‘‘Notwithstanding any other 
provision of law, upon application by any credit 
union’’; 
(2) by inserting ‘‘on lands reserved for the use of, 
and under the exclusive or concurrent jurisdiction of, 
the United States or’’ after ‘‘officer or agency of the 
United States charged with the allotment of space’’; 
(3) by inserting ‘‘lease land or’’ after ‘‘such offi-
cer or agency may in his or its discretion’’; and
(4) by inserting ‘‘or the facility built on the lease 
land’’ after ‘‘credit union to be served by the allot-
ment of space’’. 
(b) CLERICAL AMENDMENT.—The heading for section 
124 is amended by inserting ‘‘OR FEDERAL LAND’’ after 
‘‘BUILDINGS’’. 
SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED-
IT UNIONS. 
Section 107 of the Federal Credit Union Act (12 
U.S.C. 1757) is amended—
(1) in the matter preceding paragraph (1) by 
striking ‘‘A Federal credit union’’ and inserting ‘‘(a) 
IN GENERAL.—Any Federal credit union’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) INVESTMENT FOR THE CREDIT UNION’S OWN AC-
COUNT.—
‘‘(1) IN GENERAL.—A Federal credit union may 
purchase and hold for its own account such invest-
ment securities of investment grade as the Board may 
authorize by regulation, subject to such limitations 
and restrictions as the Board may prescribe in the 
regulations. 
‘‘(2) PERCENTAGE LIMITATIONS.—
‘‘(A) SINGLE OBLIGOR.—In no event may 
the total amount of investment securities of any 
single obligor or maker held by a Federal credit 
union for the credit union’s own account exceed 
at any time an amount equal to 10 percent of 
the net worth of the credit union. 
‘‘(B) AGGREGATE
INVESTMENTS.—In no 
event may the aggregate amount of investment 
securities held by a Federal credit union for the 
credit union’s own account exceed at any time 
an amount equal to 10 percent of the assets of 
the credit union. 
‘‘(3) INVESTMENT SECURITY DEFINED.—
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘investment security’ means 
marketable obligations evidencing the indebted-
ness of any person in the form of bonds, notes, 
or debentures and other instruments commonly 
referred to as investment securities. 
‘‘(B) FURTHER
DEFINITION
BY
BOARD.—
The Board may further define the term ‘invest-
ment security’. 
‘‘(4) INVESTMENT GRADE DEFINED.—The term 
‘investment grade’ means with respect to an invest-
ment security purchased by a credit union for its own
account, an investment security that at the time of 
such purchase is rated in one of the 4 highest rating 
categories by at least 1 nationally recognized statis-
tical rating organization. 
‘‘(5) CLARIFICATION OF PROHIBITION ON STOCK 
OWNERSHIP.—No provision of this subsection shall be 
construed as authorizing a Federal credit union to 
purchase shares of stock of any corporation for the 
credit union’s own account, except as otherwise per-
mitted by law.’’. 
SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF 
TERM OF FEDERAL CREDIT UNION LOANS TO 
15 YEARS. 
Section 107(a)(5) of the Federal Credit Union Act (12 
U.S.C. 1757(5)) (as so designated by section 303 of this 
title) is amended—
(1) in the matter preceding subparagraph (A), 
by striking ‘‘to make loans, the maturities of which 
shall not exceed twelve years except as otherwise pro-
vided herein’’ and inserting ‘‘to make loans, the ma-
turities of which shall not exceed 15 years or any 
longer maturity as the Board may allow, in regula-
tions, except as otherwise provided in this Act’’; 
(2) in subparagraph (A)—
(A) by striking clause (ii);
(B) by redesignating clauses (iii) through 
(x) as clauses (ii) through (ix), respectively; and 
(C) by inserting ‘‘and’’ after the semicolon 
at the end of clause (viii) (as so redesignated). 
SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN 
CREDIT UNION SERVICE ORGANIZATIONS. 
Section 107(a)(7)(I) of the Federal Credit Union Act 
(12 U.S.C. 1757(7)(I)) (as so designated by section 303 of 
this title) is amended by striking ‘‘up to 1 per centum of 
the total paid’’ and inserting ‘‘up to 3 percent of the total 
paid’’. 
SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS 
TO NONPROFIT RELIGIOUS ORGANIZATIONS. 
Section 107A(a) of the Federal Credit Union Act (12 
U.S.C. 1757a(a)) is amended by inserting ‘‘, excluding 
loans made to nonprofit religious organizations,’’ after 
‘‘total amount of such loans’’.
SEC. 307. CHECK CASHING AND MONEY TRANSFER SERV-
ICES OFFERED WITHIN THE FIELD OF MEM-
BERSHIP. 
Paragraph (12) of section 107(a) of the Federal Credit 
Union Act (12 U.S.C. 1757(12)) (as so designated by sec-
tion 303 of this title) is amended to read as follows: 
‘‘(12) in accordance with regulations prescribed 
by the Board—
‘‘(A) to sell, to persons in the field of mem-
bership, negotiable checks (including travelers 
checks), money orders, and other similar money 
transfer instruments (including electronic fund 
transfers); and 
‘‘(B) to cash checks and money orders and 
receive electronic fund transfers for persons in 
the field of membership for a fee;’’.
SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE 
COMMON-BOND CREDIT UNIONS. 
Section 109(d)(2) of the Federal Credit Union Act (12 
U.S.C. 1759(d)(2)) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii) of 
subparagraph (B); 
(2) by striking the period at the end of subpara-
graph (C) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) a merger involving any such Federal 
credit union approved by the Board on or after 
August 7, 1998.’’.
SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CRED-
IT UNIONS. 
Section 109(g) of the Federal Credit Union Act (12 
U.S.C. 1759(g)) is amended by inserting after paragraph 
(2) the following new paragraph: 
‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP OF 
CERTAIN MEMBER GROUPS IN COMMUNITY CHARTER 
CONVERSIONS.—In the case of a voluntary conversion 
of a common-bond credit union described in para-
graph (1) or (2) of subsection (b) into a community 
credit union described in subsection (b)(3), the Board 
shall prescribe, by regulation, the criteria under 
which the Board may determine that a member group 
or other portion of a credit union’s existing member-
ship, that is located outside the well-defined local 
community, neighborhood, or rural district that shall
constitute the community charter, can be satisfac-
torily served by the credit union and remain within 
the community credit union’s field of membership.’’. 
SEC. 310. CREDIT UNION GOVERNANCE. 
(a) EXPULSION OF MEMBERS FOR JUST CAUSE.—
Subsection (b) of section 118 of the Federal Credit Union 
Act (12 U.S.C. 1764(b)) is amended to read as follows: 
‘‘(b) POLICY AND ACTIONS OF BOARDS OF DIRECTORS 
OF FEDERAL CREDIT UNIONS.—
‘‘(1) EXPULSION OF MEMBERS FOR NONPARTICI-
PATION OR FOR JUST CAUSE.—The board of directors 
of a Federal credit union may, by majority vote of a 
quorum of directors, adopt and enforce a policy with 
respect to expulsion from membership, by a majority 
vote of such board of directors, based on just cause, 
including disruption of credit union operations, or on 
nonparticipation by a member in the affairs of the 
credit union. 
‘‘(2) WRITTEN
NOTICE
OF
POLICY
TO
MEM-
BERS.—If a policy described in paragraph (1) is 
adopted, written notice of the policy as adopted and 
the effective date of such policy shall be provided to—
‘‘(A) each existing member of the credit 
union not less than 30 days prior to the effective 
date of such policy; and 
‘‘(B) each new member prior to or upon ap-
plying for membership.’’. 
(b) TERM LIMITS AUTHORIZED FOR BOARD MEMBERS 
OF FEDERAL CREDIT UNIONS.—Section 111(a) of the Fed-
eral Credit Union Act (12 U.S.C. 1761(a)) is amended by 
adding at the end the following new sentence: ‘‘The bylaws 
of a Federal credit union may limit the number of consecu-
tive terms any person may serve on the board of directors 
of such credit union.’’.
(c) REIMBURSEMENT FOR LOST WAGES DUE
TO 
SERVICE ON CREDIT UNION BOARD NOT TREATED AS COM-
PENSATION.—Section 111(c) of the Federal Credit Union 
Act (12 U.S.C. 1761(c)) is amended by inserting ‘‘, includ-
ing lost wages,’’ after ‘‘the reimbursement of reasonable ex-
penses’’. 
SEC. 311. PROVIDING THE NATIONAL CREDIT UNION AD-
MINISTRATION WITH GREATER FLEXIBILITY 
IN RESPONDING TO MARKET CONDITIONS. 
Section 107(a)(5)(A)(vi)(I) of the Federal Credit 
Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated 
by section 303 of this title) is amended by striking ‘‘six-
month period and that prevailing interest rate levels’’ and 
inserting ‘‘6-month period or that prevailing interest rate 
levels’’. 
SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION 
REQUIREMENT OF THE CLAYTON ACT. 
Section 7A(c)(7) of the Clayton Act (15 U.S.C. 
18a(c)(7)) is amended by inserting ‘‘section 205(b)(3) of the 
Federal Credit Union Act (12 U.S.C. 1785(b)(3)),’’ before 
‘‘or section 3’’. 
SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY 
INSTITUTIONS UNDER SECURITIES LAWS. 
(a) DEFINITION OF BANK UNDER THE SECURITIES 
EXCHANGE ACT OF 1934.—Section 3(a)(6) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) (as amended 
by section 201(a)(1) of this Act) is amended—
(1) by striking ‘‘this title, and (D) a receiver’’ 
and inserting ‘‘this title, (D) an insured credit union 
(as defined in section 101(7) of the Federal Credit 
Union Act) but only for purposes of paragraphs (4) 
and (5) of this subsection and only for activities oth-
erwise authorized by applicable laws to which such 
credit unions are subject, and (E) a receiver’’; and 
(2) in subparagraph (E) (as so redesignated by 
paragraph (1) of this subsection) by striking ‘‘(A), 
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’. 
(b) DEFINITION OF BANK UNDER THE INVESTMENT 
ADVISERS ACT OF 1940.—Section 202(a)(2) of the Invest-
ment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) (as 
amended by section 201(b)(1) of this Act) is amended—
(1) by striking ‘‘this title, and (D) a receiver’’ 
and inserting ‘‘this title, (D) an insured credit union 
(as defined in section 101(7) of the Federal Credit 
Union Act) but only for activities otherwise author-
ized by applicable laws to which such credit unions 
are subject, and (E) a receiver’’; and 
(2) in subparagraph (E) (as so redesignated by 
paragraph (1) of this subsection) by striking ‘‘(A), 
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’.
(c) DEFINITION OF APPROPRIATE FEDERAL BANKING 
AGENCY.—Section 210A(c) of the Investment Advisers Act 
of 1940 (15 U.S.C. 80b–10a(c)) is amended by inserting 
‘‘and includes the National Credit Union Administration 
Board, in the case of an insured credit union (as defined 
in section 101(7) of the Federal Credit Union Act)’’ before 
the period at the end.
TITLE IV—DEPOSITORY 
INSTITUTION PROVISIONS 
SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCH-
ING AND MERGERS. 
(a) DE NOVO INTERSTATE BRANCHES OF NATIONAL 
BANKS.—
(1) IN GENERAL.—Section 5155(g)(1) of the Re-
vised Statutes of the United States (12 U.S.C. 
36(g)(1)) is amended by striking ‘‘maintain a branch 
if—’’ and all that follows through the end of subpara-
graph (B) and inserting ‘‘maintain a branch.’’. 
(2) CLERICAL
AMENDMENT.—The heading for 
subsection (g) of section 5155 of the Revised Statutes 
of the United States is amended by striking ‘‘STATE 
‘OPT-IN’ ELECTION TO PERMIT’’. 
(b) DE NOVO INTERSTATE BRANCHES OF STATE NON-
MEMBER BANKS.—
(1) IN
GENERAL.—Section 18(d)(4)(A) of the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1828(d)(4)(A)) is amended by striking ‘‘maintain a 
branch if—’’ and all that follows through the end of 
clause (ii) and inserting ‘‘maintain a branch.’’. 
(2) CLERICAL
AMENDMENT.—The heading for 
paragraph (4) of section 18(d) of the Federal Deposit 
Insurance Act is amended by striking ‘‘STATE ‘OPT-
IN’ ELECTION TO PERMIT INTERSTATE’’ and inserting 
‘‘INTERSTATE’’. 
(c) DE NOVO INTERSTATE BRANCHES OF STATE MEM-
BER BANKS.—The 3rd undesignated paragraph of section 
9 of the Federal Reserve Act (12 U.S.C. 321) is amended 
by adding at the end the following new sentences: ‘‘A State 
member bank may establish and operate a de novo branch 
in a host State (as such terms are defined in section 18(d) 
of the Federal Deposit Insurance Act) on the same terms
and conditions and subject to the same limitations and re-
strictions as are applicable to the establishment of a de novo 
branch of a national bank in a host State under section 
5155(g) of the Revised Statutes of the United States. Such 
section 5155(g) shall be applied for purposes of the pre-
ceding sentence by substituting ‘Board of Governors of the 
Federal Reserve System’ for ‘Comptroller of the Currency’ 
and ‘State member bank’ for ‘national bank’.’’.
(d) INTERSTATE MERGER OF BANKS.—
(1) MERGER OF INSURED BANK WITH ANOTHER 
DEPOSITORY INSTITUTION OR TRUST COMPANY.—Sec-
tion 44(a)(1) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831u(a)(1)) is amended—
(A) by striking ‘‘Beginning on June 1, 
1997, the’’ and inserting ‘‘The’’; and 
(B) by striking ‘‘insured banks with dif-
ferent home States’’ and inserting ‘‘an insured 
bank and another insured depository institution 
or trust company with a different home State 
than the resulting insured bank’’. 
(2) NATIONAL BANK TRUST COMPANY MERGER 
WITH OTHER TRUST COMPANY.—Subsection (b) of sec-
tion 4 of the National Bank Consolidation and Merg-
er Act (12 U.S.C. 215a–1(b)) is amended to read as 
follows: 
‘‘(b) MERGER OF NATIONAL BANK TRUST COMPANY 
WITH ANOTHER TRUST COMPANY.—A national bank that 
is a trust company may engage in a consolidation or merg-
er under this Act with any trust company with a different 
home State, under the same terms and conditions that 
would apply if the trust companies were located within the 
same State.’’.
(e) INTERSTATE FIDUCIARY ACTIVITY.—Section 18(d) 
of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)) 
is amended by adding at the end the following new para-
graph: 
‘‘(5) INTERSTATE FIDUCIARY ACTIVITY.—
‘‘(A) AUTHORITY OF STATE BANK SUPER-
VISOR.—The State bank supervisor of a State 
bank may approve an application by the State 
bank, when not in contravention of home State 
or host State law, to act as trustee, executor, ad-
ministrator, registrar of stocks and bonds, 
guardian of estates, assignee, receiver, committee 
of estates of lunatics, or in any other fiduciary 
capacity in a host State in which State banks or 
other corporations which come into competition 
with national banks are permitted to act under 
the laws of such host State. 
‘‘(B) NONCONTRAVENTION OF HOST STATE 
LAW.—Whenever the laws of a host State author-
ize or permit the exercise of any or all of the 
foregoing powers by State banks or other cor-
porations which compete with national banks, 
the granting to and the exercise of such powers 
by a State bank as provided in this paragraph
shall not be deemed to be in contravention of host 
State law within the meaning of this paragraph. 
‘‘(C) STATE BANK INCLUDES TRUST COMPA-
NIES.—For purposes of this paragraph, the term 
‘State bank’ includes any State-chartered trust 
company (as defined in section 44(g)). 
‘‘(D) OTHER
DEFINITIONS.—For purposes 
of this paragraph, the term ‘home State’ and 
‘host State’ have the meanings given such terms 
in section 44.’’. 
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 44 of the Federal Deposit Insurance 
Act (12 U.S.C. 1831u) is amended—
(A) in subsection (a)—
(i) by striking paragraph (4) and in-
serting the following new paragraph: 
‘‘(4) TREATMENT OF BRANCHES IN CONNECTION 
WITH
CERTAIN
INTERSTATE
MERGER
TRANS-
ACTIONS.—In the case of an interstate merger trans-
action which involves the acquisition of a branch of 
an insured depository institution or trust company 
without the acquisition of the insured depository in-
stitution or trust company, the branch shall be treat-
ed, for purposes of this section, as an insured deposi-
tory institution or trust company the home State of
which is the State in which the branch is located.’’; 
and 
(ii) by striking paragraphs (5) and 
(6); 
(B) in subsection (b)—
(i) by striking ‘‘bank’’ each place such 
term appears in paragraph (2)(B)(i) and 
inserting ‘‘insured depository institution’’; 
(ii) by striking ‘‘banks’’ where such 
term appears in paragraph (2)(E) and in-
serting ‘‘insured depository institutions or 
trust companies’’; 
(iii) by striking ‘‘bank affiliate’’ each 
place such term appears in that portion of 
paragraph (3) that precedes subparagraph 
(A) and inserting ‘‘insured depository insti-
tution affiliate’’; 
(iv) by striking ‘‘any bank’’ where such 
term appears in paragraph (3)(B) and in-
serting ‘‘any insured depository institu-
tion’’; 
(v) by striking ‘‘bank’’ where such term 
appears in paragraph (4)(A) and inserting 
‘‘insured depository institution and trust 
company’’; and
(vi) by striking ‘‘all banks’’ where such 
term appears in paragraph (5) and insert-
ing ‘‘all insured depository institutions and 
trust companies’’; 
(C) in subsection (d)(1), by striking ‘‘any 
bank’’ and inserting ‘‘any insured depository in-
stitution or trust company’’; 
(D) in subsection (e)—
(i) by striking ‘‘1 or more banks’’ and 
inserting ‘‘1 or more insured depository in-
stitutions’’; and 
(ii) by striking ‘‘paragraph (2), (4), or 
(5)’’ and inserting ‘‘paragraph (2)’’; 
(E) by striking clauses (i) and (ii) of sub-
section (g)(4)(A) and inserting the following new 
clauses:
‘‘(i) with respect to a national bank or 
Federal savings association, the State in 
which the main office of the bank or savings 
association is located; and 
‘‘(ii) with respect to a State bank, 
State savings association, or State-chartered 
trust company, the State by which the bank, 
savings association, or trust company is 
chartered; and’’;
(F) by striking paragraph (5) of subsection 
(g) and inserting the following new paragraph: 
‘‘(5) HOST
STATE.—The term ‘host State’ 
means—
‘‘(A) with respect to a bank, a State, other 
than the home State of the bank, in which the 
bank maintains, or seeks to establish and main-
tain, a branch; and 
‘‘(B) with respect to a trust company and 
solely for purposes of section 18(d)(5), a State, 
other than the home State of the trust company, 
in which the trust company acts, or seeks to act, 
in 1 or more fiduciary capacities.’’; 
(G) in subsection (g)(10), by striking ‘‘sec-
tion 18(c)(2)’’ and inserting ‘‘paragraph (1) or 
(2) of section 18(c), as appropriate,’’; and 
(H) in subsection (g), by adding at the end 
the following new paragraph: 
‘‘(12) TRUST COMPANY.—The term ‘trust com-
pany’ means—
‘‘(A) any national bank; 
‘‘(B) any savings association; and 
‘‘(C) any bank, banking association, trust 
company, savings bank, or other banking institu-
tion which is incorporated under the laws of any 
State, 
that is authorized to act in 1 or more fiduciary ca-
pacities but is not engaged in the business of receiving 
deposits other than trust funds (as defined in section 
3(p)).’’. 
(2) Section 3(d) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1842(d)) is amended—
(A) in paragraph (1)—
(i) by striking subparagraphs (B) and 
(C); and 
(ii) by redesignating subparagraph (D) 
as subparagraph (B); and 
(B) in paragraph (5), by striking ‘‘subpara-
graph (B) or (D)’’ and inserting ‘‘subparagraph 
(B)’’. 
(3) Subsection (c) of section 4 of the National 
Bank Consolidation and Merger Act (12 U.S.C. 215a–
1(c)) is amended to read as follows: 
‘‘(c) DEFINITIONS.—For purposes of this section, the 
terms ‘home State’, ‘out-of-State bank’, and ‘trust company’ 
each have the same meaning as in section 44(g) of the Fed-
eral Deposit Insurance Act.’’. 
(g) CLERICAL AMENDMENTS.—
(1) The heading for section 44(b)(2)(E) of the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1831u(b)(2)(E)) is amended by striking ‘‘BANKS’’ and 
inserting ‘‘INSURED DEPOSITORY INSTITUTIONS AND 
TRUST COMPANIES’’. 
(2) The heading for section 44(e) of the Federal 
Deposit Insurance Act (12 U.S.C. 1831u(e)) is 
amended by striking ‘‘BANKS’’ and inserting ‘‘IN-
SURED DEPOSITORY INSTITUTIONS’’. 
SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW 
OF APPOINTMENT OF A RECEIVER FOR DE-
POSITORY INSTITUTIONS. 
(a) NATIONAL BANKS.—Section 2 of the National 
Bank Receivership Act (12 U.S.C. 191) is amended—
(1) by striking ‘‘SECTION 2. The Comptroller of 
the Currency’’ and inserting the following: 
‘‘SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL 
BANK. 
‘‘(a) IN GENERAL.—The Comptroller of the Currency’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) JUDICIAL REVIEW.—If the Comptroller of the 
Currency appoints a receiver under subsection (a), the na-
tional bank may, within 30 days thereafter, bring an action
in the United States district court for the judicial district 
in which the home office of such bank is located, or in the 
United States District Court for the District of Columbia, 
for an order requiring the Comptroller of the Currency to 
remove the receiver, and the court shall, upon the merits, 
dismiss such action or direct the Comptroller of the Cur-
rency to remove the receiver.’’. 
(b) INSURED DEPOSITORY INSTITUTIONS.—Section 
11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(c)(7)) is amended to read as follows: 
‘‘(7) JUDICIAL REVIEW.—If the Corporation is 
appointed (including the appointment of the Corpora-
tion as receiver by the Board of Directors) as conser-
vator or receiver of a depository institution under 
paragraph (4), (9), or (10), the depository institution 
may, within 30 days thereafter, bring an action in 
the United States district court for the judicial dis-
trict in which the home office of such depository insti-
tution is located, or in the United States District 
Court for the District of Columbia, for an order re-
quiring the Corporation to be removed as the conser-
vator or receiver (regardless of how such appointment 
was made), and the court shall, upon the merits, dis-
miss such action or direct the Corporation to be re-
moved as the conservator or receiver.’’.
(c) EXPANSION OF PERIOD FOR CHALLENGING THE 
APPOINTMENT OF A LIQUIDATING AGENT.—Subparagraph 
(B) of section 207(a)(1) of the Federal Credit Union Act 
(12 U.S.C. 1787(a)(1)) is amended by striking ‘‘10 days’’ 
and inserting ‘‘30 days’’. 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a), (b), and (c) shall apply with respect to con-
servators, receivers, or liquidating agents appointed on or 
after the date of the enactment of this Act. 
SEC. 403. REPORTING REQUIREMENTS RELATING TO IN-
SIDER LENDING. 
(a) REPORTING REQUIREMENTS REGARDING LOANS 
TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section 
22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amend-
ed—
(1) by striking paragraphs (6) and (9); and
(2) by redesignating paragraphs (7), (8), and 
(10) as paragraphs (6), (7), and (8), respectively. 
(b) REPORTING REQUIREMENTS REGARDING LOANS 
FROM CORRESPONDENT BANKS TO EXECUTIVE OFFICERS 
AND
SHAREHOLDERS
OF
INSURED
BANKS.—Section 
106(b)(2) of the Bank Holding Company Act Amendments 
of 1970 (12 U.S.C. 1972(2)) is amended—
(1) by striking subparagraph (G); and
(2) by redesignating subparagraphs (H) and (I) 
as subparagraphs (G) and (H), respectively.
SEC. 404. AMENDMENT TO PROVIDE AN INFLATION ADJUST-
MENT FOR THE SMALL DEPOSITORY INSTITU-
TION EXCEPTION UNDER THE DEPOSITORY 
INSTITUTION 
MANAGEMENT 
INTERLOCKS 
ACT. 
Section 203(1) of the Depository Institution Manage-
ment Interlocks Act (12 U.S.C. 3202(1)) is amended by 
striking ‘‘$20,000,000’’ and inserting ‘‘$100,000,000’’. 
SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF IN-
SURED DEPOSITORY INSTITUTIONS. 
(a) CLARIFICATION RELATING
TO
THE ENFORCE-
ABILITY OF AGREEMENTS AND CONDITIONS.—The Federal 
Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended 
by adding at the end the following new section: 
‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS. 
‘‘(a) IN GENERAL.—Notwithstanding clause (i) or (ii) 
of section 8(b)(6)(A) or section 38(e)(2)(E), an appropriate 
Federal banking agency may enforce, under section 8, the 
terms of—
‘‘(1) any condition imposed in writing by the 
agency on a depository institution or an institution-
affiliated party (including a bank holding company) 
in connection with any action on any application,
notice, or other request concerning a depository insti-
tution; or 
‘‘(2) any written agreement entered into between 
the agency and an institution-affiliated party (in-
cluding a bank holding company). 
‘‘(b) RECEIVERSHIPS AND CONSERVATORSHIPS.—After 
the appointment of the Corporation as the receiver or con-
servator for any insured depository institution, the Cor-
poration may enforce any condition or agreement described 
in paragraph (1) or (2) of subsection (a) involving such 
institution or any institution-affiliated party (including a 
bank holding company), through an action brought in an 
appropriate United States district court.’’. 
(b) PROTECTION OF CAPITAL OF INSURED DEPOSI-
TORY INSTITUTIONS.—Paragraph (1) of section 18(u) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(u)) is 
amended by striking subparagraph (B) and by redesig-
nating subparagraph (C) as subparagraph (B). 
SEC. 406. INVESTMENTS BY INSURED SAVINGS ASSOCIA-
TIONS IN BANK SERVICE COMPANIES AU-
THORIZED. 
(a) IN GENERAL.—Sections 2 and 3 of the Bank Serv-
ice Company Act (12 U.S.C. 1862, 1863) are each amended 
by striking ‘‘insured bank’’ each place such term appears 
and inserting ‘‘insured depository institution’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 1(b)(4) of the Bank Service Company 
Act (12 U.S.C. 1861(b)(4)) is amended—
(A) by inserting ‘‘, except when such term 
appears in connection with the term ‘insured de-
pository institution’,’’ after ‘‘means’’; and 
(B) by striking ‘‘Federal Home Loan Bank 
Board’’ and inserting ‘‘Director of the Office of 
Thrift Supervision’’. 
(2) Section 1(b) of the Bank Service Company 
Act (12 U.S.C. 1861(b)) is amended—
(A) by striking paragraph (5) and inserting 
the following new paragraph: 
‘‘(5) INSURED
DEPOSITORY
INSTITUTION.—The 
term ‘insured depository institution’ has the meaning 
given the term in section 3(c) of the Federal Deposit 
Insurance Act;’’; 
(B) by striking ‘‘and’’ at the end of para-
graph (7); 
(C) by striking the period at the end of 
paragraph (8) and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(9) the terms ‘State depository institution’, 
‘Federal depository institution’, ‘State savings asso-
ciation’ and ‘Federal savings association’ have the 
meanings given the terms in section 3 of the Federal 
Deposit Insurance Act.’’. 
(3) The 1st sentence of section 5(c)(4)(B) of the 
Home Owners’ Loan Act (12 U.S.C. 1464(c)(4)(B)) is 
amended by striking ‘‘by savings associations of such 
State and by Federal associations’’ and inserting ‘‘by 
State and Federal depository institutions’’. 
(4) Subparagraph (A)(ii) and subparagraph 
(B)(ii) of section 1(b)(2) of the Bank Service Com-
pany Act (12 U.S.C. 1861(b)(2)) are each amended 
by striking ‘‘insured banks’’ and inserting ‘‘insured 
depository institutions’’. 
(5) Section 1(b)(8) of the Bank Service Company 
Act (12 U.S.C. 1861(b)(8)) is further amended—
(A) by striking ‘‘insured bank’’ and insert-
ing ‘‘insured depository institution’’
(B) by striking ‘‘insured banks’’ each place 
such term appears and inserting ‘‘insured depos-
itory institutions’’; and 
(C) by striking ‘‘the bank’s’’ and inserting 
‘‘the depository institution’s’’. 
(6) Section 2 of the Bank Service Company Act 
(12 U.S.C. 1862) is amended by inserting ‘‘or savings 
associations, other than the limitation on the amount
of investment by a Federal savings association con-
tained in section 5(c)(4)(B) of the Home Owners’ 
Loan Act’’ after ‘‘relating to banks’’. 
(7) Section 4(c) of the Bank Service Company 
Act (12 U.S.C. 1864(c)) is amended by inserting ‘‘or 
State savings association’’ after ‘‘State bank’’ each 
place such term appears. 
(8) Section 4(d) of the Bank Service Company 
Act (12 U.S.C. 1864(d)) is amended by inserting ‘‘or 
Federal savings association’’ after ‘‘national bank’’ 
each place such term appears. 
(9) Section 4(e) of the Bank Service Company 
Act (12 U.S.C. 1864(e)) is amended to read as fol-
lows: 
‘‘(e) A bank service company may perform—
‘‘(1) only those services that each depository in-
stitution shareholder or member is otherwise author-
ized to perform under any applicable Federal or State 
law; and 
‘‘(2) such services only at locations in a State in 
which each such shareholder or member is authorized 
to perform such services.’’.
(10) Section 4(f) of the Bank Service Company 
Act (12 U.S.C. 1864(f)) is amended by inserting ‘‘or 
savings associations’’ after ‘‘location of banks’’.
(11) Section 5 of the Bank Service Company Act 
(12 U.S.C. 1865) is amended—
(A) in subsection (a)—
(i) by striking ‘‘insured bank’’ and in-
serting ‘‘insured depository institution’’; 
and 
(ii) by striking ‘‘bank’s’’ and inserting 
‘‘institution’s’’. 
(B) in subsection (b), by striking ‘‘insured 
bank’’ and inserting ‘‘insured depository institu-
tion’’; and 
(C) in subsection (c)—
(i) by striking ‘‘the bank or banks’’ 
and inserting ‘‘any depository institution’’; 
and 
(ii) by striking ‘‘capability of the 
bank’’ and inserting ‘‘capability of the de-
pository institution’’. 
(12) Section 7 of the Bank Service Company Act 
(12 U.S.C. 1867) is amended—
(A) in subsection (b), by striking ‘‘insured 
bank’’ and inserting ‘‘insured depository institu-
tion’’; and 
(B) in subsection (c)—
(i) by striking ‘‘a bank’’ each place 
such term appears and inserting ‘‘a deposi-
tory institution’’; and 
(ii) by striking ‘‘the bank’’ each place 
such term appears and inserting ‘‘the depos-
itory institution’’. 
SEC. 407. CROSS GUARANTEE AUTHORITY. 
Subparagraph (A) of section 5(e)(9) of the Federal De-
posit Insurance Act (12 U.S.C. 1815(e)(9)(A)) is amended 
to read as follows: 
‘‘(A) such institutions are controlled by the 
same company; or’’. 
SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK 
HOLDING COMPANIES. 
Subsection (k) of section 18 of the Federal Deposit In-
surance Act (12 U.S.C. 1828(k)) is amended—
(1) in paragraph (2)(A), by striking ‘‘or deposi-
tory institution holding company’’ and inserting ‘‘or 
covered company’’; 
(2) by striking subparagraph (B) of paragraph 
(2) and inserting the following new subparagraph: 
‘‘(B) Whether there is a reasonable basis to 
believe that the institution-affiliated party is 
substantially responsible for—
‘‘(i) the insolvency of the depository in-
stitution or covered company; 
‘‘(ii) the appointment of a conservator 
or receiver for the depository institution; or 
‘‘(iii) the depository institution’s trou-
bled condition (as defined in the regulations 
prescribed pursuant to section 32(f)).’’; 
(3) in paragraph (2)(F), by striking ‘‘depository 
institution holding company’’ and inserting ‘‘covered 
company,’’; 
(4) in paragraph (3) in the matter preceding 
subparagraph (A), by striking ‘‘depository institution 
holding company’’ and inserting ‘‘covered company’’; 
(5) in paragraph (3)(A), by striking ‘‘holding 
company’’ and inserting ‘‘covered company’’; 
(6) in paragraph (4)(A)—
(A) by striking ‘‘depository institution hold-
ing company’’ each place such term appears and 
inserting ‘‘covered company’’; and 
(B) by striking ‘‘holding company’’ each 
place such term appears (other than in connec-
tion with the term referred to in subparagraph 
(A)) and inserting ‘‘covered company’’;
(7) in paragraph (5)(A), by striking ‘‘depository 
institution holding company’’ and inserting ‘‘covered 
company’’; 
(8) in paragraph (5), by adding at the end the 
following new subparagraph: 
‘‘(D) COVERED COMPANY.—The term ‘cov-
ered company’ means any depository institution 
holding company (including any company re-
quired to file a report under section 4(f)(6) of the 
Bank Holding Company Act of 1956), or any 
other company that controls an insured deposi-
tory institution.’’; and 
(9) in paragraph (6)—
(A) by striking ‘‘depository institution hold-
ing company’’ and inserting ‘‘covered com-
pany,’’; and 
(B) by striking ‘‘or holding company’’ and 
inserting ‘‘or covered company’’. 
SEC. 409. AMENDMENTS RELATING TO CHANGE IN BANK 
CONTROL. 
Section 7(j) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(j)) is amended—
(1) in paragraph (1)(D)—
(A) by striking ‘‘is needed to investigate’’ 
and inserting ‘‘is needed—
‘‘(i) to investigate’’; 
(B) by striking ‘‘United States Code.’’ and 
inserting ‘‘United States Code; or’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) to analyze the safety and sound-
ness of any plans or proposals described in 
paragraph (6)(E) or the future prospects of 
the institution.’’; and 
(2) in paragraph (7)(C), by striking ‘‘the finan-
cial condition of any acquiring person’’ and inserting 
‘‘either the financial condition of any acquiring per-
son or the future prospects of the institution’’.
TITLE V—DEPOSITORY INSTITU-
TION 
AFFILIATES 
PROVI-
SIONS 
SEC. 501. CLARIFICATION OF CROSS MARKETING PROVI-
SION. 
Section 4(n)(5) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1843(n)(5)) is amended—
(1) in subparagraph (B), by striking ‘‘subsection 
(k)(4)(I)’’ and inserting ‘‘subparagraph (H) or (I) of 
subsection (k)(4)’’; and 
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) THRESHOLD OF CONTROL.—Subpara-
graph (A) shall not apply with respect to a com-
pany described or referred to in clause (i) or (ii) 
of such subparagraph if the financial holding 
company does not own or control 25 percent or 
more of the total equity or any class of voting se-
curities of such company.’’. 
SEC. 502. AMENDMENT TO PROVIDE THE FEDERAL RE-
SERVE 
BOARD 
WITH 
DISCRETION 
CON-
CERNING THE IMPUTATION OF CONTROL OF 
SHARES OF A COMPANY BY TRUSTEES. 
Section 2(g)(2) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1841(g)(2)) is amended by inserting ‘‘, un-
less the Board determines that such treatment is not appro-
priate in light of the facts and circumstances of the case 
and the purposes of this Act’’ before the period at the end. 
SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON THRIFT 
SERVICE COMPANIES. 
(a) IN
GENERAL.—The 1st sentence of section 
5(c)(4)(B) of the Home Owners’ Loan Act (12 U.S.C. 
1464(c)(4)(B)) (as amended by section 406(b)(3) of this 
Act) is amended—
(1) by striking ‘‘corporation organized’’ and all 
that follows through ‘‘is available for purchase’’ and
inserting ‘‘company, if the entire capital of the com-
pany is available for purchase’’; and 
(2) by striking ‘‘having their home offices in 
such State’’. 
(b) TECHNICAL CORRECTIONS.—
(1) The heading for subparagraph (B) of section 
5(c)(4) of the Home Owners’ Loan Act (12 U.S.C. 
1464(c)(4)(B)) is amended by striking ‘‘CORPORA-
TIONS’’ and inserting ‘‘COMPANIES’’. 
(2) The 2nd sentence of section 5(n)(1) of the 
Home Owners’ Loan Act (12 U.S.C. 1464(n)(1)) is 
amended by striking ‘‘service corporations’’ and in-
serting ‘‘service companies’’. 
(3) Section 5(q)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(q)(1)) is amended by striking 
‘‘service corporation’’ each place such term appears in 
subparagraphs (A), (B), and (C) and inserting ‘‘serv-
ice company’’. 
(4) Section 10(m)(4)(C)(iii)(II) of the Home 
Owners’ 
Loan 
Act 
(12 
U.S.C. 
1467a(m)(4)(C)(iii)(II)) is amended by striking 
‘‘service corporation’’ each place such term appears 
and inserting ‘‘service company’’.
SEC. 504. CLARIFICATION OF SCOPE OF APPLICABLE RATE 
PROVISION. 
Section 44(f) of the Federal Deposit Insurance Act (12 
U.S.C. 1831u(f)) is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(3) OTHER LENDERS.—In the case of any other 
lender doing business in the State described in para-
graph (1), the maximum interest rate or amount of 
interest, discount points, finance charges, or other 
similar charges that may be charged, taken, received, 
or reserved from time to time in any loan, discount, 
or credit sale made, or upon any note, bill of ex-
change, financing transaction, or other evidence of 
debt issued to or acquired by any other lender shall 
be equal to not more than the greater of the rates de-
scribed in subparagraph (A) or (B) of paragraph (1). 
‘‘(4) OTHER LENDER DEFINED.—For purposes of 
paragraph (3), the term ‘other lender’ means any per-
son engaged in the business of selling or financing the 
sale of personal property (and any services incidental 
to the sale of personal property) in such State, except 
that, with regard to any person or entity described in 
such paragraph, such term does not include—
‘‘(A) an insured depository institution; or
‘‘(B) any person or entity engaged in the 
business of providing a short-term cash advance 
to any consumer in exchange for—
‘‘(i) a consumer’s personal check or 
share draft, in the amount of the advance 
plus a fee, where presentment or negotiation 
of such check or share draft is deferred by 
agreement of the parties until a designated 
future date; or 
‘‘(ii) a consumer authorization to debit 
the consumer’s transaction account, in the 
amount of the advance plus a fee, where 
such account will be debited on or after a 
designated future date.’’. 
TITLE VI—BANKING AGENCY 
PROVISIONS 
SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER 
TO ALLOCATE EXAMINER RESOURCES. 
Section 10(d) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(d)) is amended—
(1) by redesignating paragraphs (5), (6), (7), 
(8), (9), and (10) as paragraphs (6), (7), (8), (9), 
(10), and (11), respectively; 
(2) by inserting after paragraph (4), the fol-
lowing new paragraph:
‘‘(5) WAIVER OF SCHEDULE WHEN NECESSARY 
TO ACHIEVE SAFE AND SOUND ALLOCATION OF EXAM-
INER RESOURCES.—Notwithstanding paragraphs (1), 
(2), (3), and (4), an appropriate Federal banking 
agency may make adjustments in the examination 
cycle for an insured depository institution if nec-
essary to allocate available resources of examiners in 
a manner that provides for the safety and soundness 
of, and the effective examination and supervision of, 
insured depository institutions.’’; and 
(3) in paragraphs (8) and (9), as so redesig-
nated, by striking ‘‘paragraph (6)’’ and inserting 
‘‘paragraph (7)’’.
SEC. 602. INTERAGENCY DATA SHARING. 
(a) FEDERAL BANKING AGENCIES.—Section 7(a)(2) of 
the Federal Deposit Insurance Act (12 U.S.C. 1817(a)(2)) 
is amended by adding at the end the following new subpara-
graph: 
‘‘(C) DATA
SHARING
WITH
OTHER
AGEN-
CIES AND PERSONS.—In addition to reports of 
examination, reports of condition, and other re-
ports required to be regularly provided to the 
Corporation (with respect to all insured deposi-
tory institutions, including a depository institu-
tion for which the Corporation has been ap-
pointed conservator or receiver) or an appro-
priate State bank supervisor (with respect to a 
State depository institution) under subpara-
graph (A) or (B), a Federal banking agency 
may, in the agency’s discretion, furnish any re-
port of examination or other confidential super-
visory information concerning any depository 
institution or other entity examined by such 
agency under authority of any Federal law, to—
‘‘(i) any other Federal or State agency 
or authority with supervisory or regulatory 
authority over the depository institution or 
other entity; 
‘‘(ii) any officer, director, or receiver of 
such depository institution or entity; and 
‘‘(iii) any other person the Federal 
banking agency determines to be appro-
priate.’’. 
(b) NATIONAL CREDIT UNION ADMINISTRATION.—Sec-
tion 202(a) of the Federal Credit Union Act (12 U.S.C. 
1782(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(8) DATA SHARING WITH OTHER AGENCIES AND 
PERSONS.—In addition to reports of examination, re-
ports of condition, and other reports required to be
regularly provided to the Board (with respect to all 
insured credit unions, including a credit union for 
which the Corporation has been appointed conservator 
or liquidating agent) or an appropriate State com-
mission, board, or authority having supervision of a 
State-chartered credit union, the Board may, in the 
Board’s discretion, furnish any report of examination 
or other confidential supervisory information con-
cerning any credit union or other entity examined by 
the Board under authority of any Federal law, to—
‘‘(A) any other Federal or State agency or 
authority with supervisory or regulatory author-
ity over the credit union or other entity; 
‘‘(B) any officer, director, or receiver of 
such credit union or entity; and 
‘‘(C) any other institution-affiliated party 
of such credit union or entity the Board deter-
mines to be appropriate.’’. 
SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION 
BY CONVICTED INDIVIDUAL. 
Section 19 of the Federal Deposit Insurance Act (12 
U.S.C. 1829) is amended by adding at the end the following 
new subsection: 
‘‘(c) NONINSURED BANKS.—Subsections (a) and (b) 
shall apply to a noninsured national bank and a non-
insured State member bank, and any agency or noninsured 
branch (as such terms are defined in section 1(b) of the 
International Banking Act of 1978) of a foreign bank as 
if such bank, branch, or agency were an insured depository 
institution, except such subsections shall be applied for pur-
poses of this subsection by substituting the agency deter-
mined under the following paragraphs for ‘Corporation’ 
each place such term appears in such subsections: 
‘‘(1) The Comptroller of the Currency, in the case 
of a noninsured national bank or any Federal agency 
or noninsured Federal branch of a foreign bank. 
‘‘(2) The Board of Governors of the Federal Re-
serve System, in the case of a noninsured State mem-
ber bank or any State agency or noninsured State 
branch of a foreign bank.’’. 
SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF 
OLD RECORDS OF A DEPOSITORY INSTITU-
TION BY THE FDIC AFTER THE APPOINTMENT 
OF THE FDIC AS RECEIVER. 
Section 11(d)(15)(D) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(d)(15)(D)) is amended—
(1) by striking ‘‘RECORDKEEPING
REQUIRE-
MENT.—After the end of the 6-year period’’ and in-
serting ‘‘RECORDKEEPING REQUIREMENT.—
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), after the end of the 6-year pe-
riod’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(ii) OLD RECORDS.—In the case of 
records of an insured depository institution 
which are at least 10 years old as of the 
date the Corporation is appointed as the re-
ceiver of such depository institution, the 
Corporation may destroy such records in 
accordance with clause (i) any time after 
such appointment is final without regard to
the 6-year period of limitation contained in 
such clause.’’. 
SEC. 605. MODERNIZATION OF RECORDKEEPING REQUIRE-
MENT. 
Subsection (f) of section 10 of the Federal Deposit In-
surance Act (12 U.S.C. 1820(f)) is amended to read as fol-
lows: 
‘‘(f) PRESERVATION OF AGENCY RECORDS.—
‘‘(1) IN GENERAL.—A Federal banking agency 
may cause any and all records, papers, or documents 
kept by the agency or in the possession or custody of 
the agency to be—
‘‘(A) photographed or microphotographed or 
otherwise reproduced upon film; or 
‘‘(B) preserved in any electronic medium or 
format which is capable of—
‘‘(i) being read or scanned by com-
puter; and 
‘‘(ii) being reproduced from such elec-
tronic medium or format by printing or 
any other form of reproduction of electroni-
cally stored data. 
‘‘(2) TREATMENT AS ORIGINAL RECORDS.—Any 
photographs, microphotographs, or photographic film 
or copies thereof described in paragraph (1)(A) or re-
production of electronically stored data described in 
paragraph (1)(B) shall be deemed to be an original 
record for all purposes, including introduction in evi-
dence in all State and Federal courts or administra-
tive agencies and shall be admissible to prove any act, 
transaction, occurrence, or event therein recorded. 
‘‘(3) AUTHORITY
OF
THE
FEDERAL
BANKING 
AGENCIES.—Any photographs, microphotographs, or 
photographic film or copies thereof described in para-
graph (1)(A) or reproduction of electronically stored 
data described in paragraph (1)(B) shall be preserved 
in such manner as the Federal banking agency shall
prescribe and the original records, papers, or docu-
ments may be destroyed or otherwise disposed of as 
the Federal banking agency may direct.’’.
SEC. 606. CLARIFICATION OF EXTENT OF SUSPENSION, RE-
MOVAL, AND PROHIBITION AUTHORITY OF 
FEDERAL BANKING AGENCIES IN CASES OF 
CERTAIN CRIMES BY INSTITUTION-AFFILI-
ATED PARTIES. 
(a) INSURED DEPOSITORY INSTITUTION.—
(1) IN GENERAL.—Section 8(g)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1818(g)(1)) is 
amended—
(A) in subparagraph (A), by striking ‘‘the 
depository’’ each place such term appears and 
inserting ‘‘any depository’’; 
(B) in subparagraph (B)(i), by inserting 
‘‘of which the subject of the order is an institu-
tion-affiliated party’’ before the period at the 
end; 
(C) in subparagraph (C), by striking ‘‘the 
depository’’ each place such term appears and 
inserting ‘‘any depository’’; 
(D) in subparagraph (D)(i), by inserting 
‘‘of which the subject of the order is an institu-
tion-affiliated party’’ after ‘‘upon the depository 
institution’’; and 
(E) by adding at the end the following new 
subparagraph: 
‘‘(E) CONTINUATION
OF
AUTHORITY.—A 
Federal banking agency may issue an order 
under this paragraph with respect to an indi-
vidual who is an institution-affiliated party at 
a depository institution at the time of an offense 
described in subparagraph (A) without regard 
to—
‘‘(i) whether such individual is an in-
stitution-affiliated party at any depository 
institution at the time the order is consid-
ered or issued by the agency; or 
‘‘(ii) whether the depository institution 
at which the individual was an institution-
affiliated party at the time of the offense re-
mains in existence at the time the order is 
considered or issued by the agency.’’. 
(2) CLERICAL AMENDMENT.—Section 8(g) of the 
Federal Deposit Insurance Act (12 U.S.C. 1818(g)) is 
amended by striking ‘‘(g)’’ and inserting the following 
new subsection heading:
‘‘(g) SUSPENSION, REMOVAL, AND PROHIBITION FROM 
PARTICIPATION ORDERS IN THE CASE OF CERTAIN CRIMI-
NAL OFFENSES.—’’. 
(b) INSURED CREDIT UNIONS.—
(1) IN GENERAL.—Section 206(i)(1) of the Fed-
eral Credit Union Act (12 U.S.C. 1786(i)(1)) is 
amended—
(A) in subparagraph (A), by striking ‘‘the 
credit union’’ each place such term appears and 
inserting ‘‘any credit union’’; 
(B) in subparagraph (B)(i), by inserting 
‘‘of which the subject of the order is, or most re-
cently was, an institution-affiliated party’’ be-
fore the period at the end; 
(C) in subparagraph (C), by striking ‘‘the 
credit union’’ each place such term appears and 
inserting ‘‘any credit union’’; 
(D) in subparagraph (D)(i), by striking 
‘‘upon such credit union’’ and inserting ‘‘upon 
the credit union of which the subject of the order 
is, or most recently was, an institution-affiliated 
party’’; and 
(E) by adding at the end the following new 
subparagraph:
‘‘(E) CONTINUATION OF AUTHORITY.—The 
Board may issue an order under this paragraph 
with respect to an individual who is an institu-
tion-affiliated party at a credit union at the 
time of an offense described in subparagraph (A) 
without regard to—
‘‘(i) whether such individual is an in-
stitution-affiliated party at any credit 
union at the time the order is considered or 
issued by the Board; or 
‘‘(ii) whether the credit union at which 
the individual was an institution-affiliated 
party at the time of the offense remains in 
existence at the time the order is considered 
or issued by the Board.’’.
(2) CLERICAL AMENDMENT.—Section 206(i) of 
the Federal Credit Union Act (12 U.S.C. 1786(i)) is 
amended by striking ‘‘(i)’’ at the beginning and in-
serting the following new subsection heading: 
‘‘(i) SUSPENSION, REMOVAL, AND PROHIBITION FROM 
PARTICIPATION ORDERS IN THE CASE OF CERTAIN CRIMI-
NAL OFFENSES.—’’.
SEC. 607. STREAMLINING DEPOSITORY INSTITUTION MERG-
ER APPLICATION REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (4) of section 18(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is 
amended to read as follows: 
‘‘(4) REPORTS ON COMPETITIVE FACTORS.—
‘‘(A) REQUEST FOR REPORT.—In the inter-
ests of uniform standards, before acting on any 
application for approval of a merger trans-
action, the responsible agency, unless the agency 
finds that it must act immediately in order to 
prevent the probable failure of a depository insti-
tution involved, shall—
‘‘(i) request a report on the competitive 
factors involved from the Attorney General; 
and 
‘‘(ii) provide a copy of the request to 
the Corporation (when the Corporation is 
not the responsible agency). 
‘‘(B) FURNISHING OF REPORT.—The report 
requested under subparagraph (A) shall be fur-
nished by the Attorney General to the responsible 
agency—
‘‘(i) not more than 30 calendar days 
after the date on which the Attorney Gen-
eral received the request; or
‘‘(ii) not more than 10 calendar days 
after such date, if the requesting agency ad-
vises the Attorney General that an emer-
gency exists requiring expeditious action.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—The 
penultimate sentence of section 18(c)(6) of the Federal De-
posit Insurance Act (12 U.S.C. 1828(c)(6)) is amended to 
read as follows: ‘‘If the agency has advised the Attorney 
General under paragraph (4)(B) of the existence of an emer-
gency requiring expeditious action and has requested a re-
port on the competitive factors within 10 days, the trans-
action may not be consummated before the fifth calendar 
day after the date of approval by the agency.’’. 
SEC. 608. INCLUSION OF DIRECTOR OF THE OFFICE OF 
THRIFT SUPERVISION IN LIST OF BANKING 
AGENCIES 
REGARDING 
INSURANCE 
CUS-
TOMER PROTECTION REGULATIONS. 
Section 47(g)(2)(B)(i) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831x(g)(2)(B)(i)) is amended by in-
serting ‘‘the Director of the Office of Thrift Supervision,’’ 
after ‘‘Comptroller of the Currency,’’.
SEC. 609. SHORTENING OF POST-APPROVAL ANTITRUST RE-
VIEW PERIOD WITH THE AGREEMENT OF THE 
ATTORNEY GENERAL. 
(a) ANTITRUST REVIEWS UNDER THE BANK HOLDING 
COMPANY ACT OF 1956.—The 4th sentence of section 11(b) 
of the Bank Holding Company Act of 1956 (12 U.S.C. 
1849(b) is amended by striking ‘‘15 calendar days’’ and 
inserting ‘‘5 calendar days’’. 
(b) ANTITRUST REVIEWS UNDER THE FEDERAL DE-
POSIT INSURANCE ACT.—The last sentence of section 
18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)(6)) is amended by striking ‘‘15 calendar days’’ and 
inserting ‘‘5 calendar days’’. 
SEC. 610. PROTECTION OF CONFIDENTIAL INFORMATION 
RECEIVED 
BY 
FEDERAL 
BANKING 
REGU-
LATORS FROM FOREIGN BANKING SUPER-
VISORS. 
Section 15 of the International Banking Act of 1978 
(12 U.S.C. 3109) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(c) CONFIDENTIAL INFORMATION RECEIVED FROM 
FOREIGN SUPERVISORS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), a Federal banking agency may not be com-
pelled to disclose information received from a foreign 
regulatory or supervisory authority if—
‘‘(A) the foreign regulatory or supervisory 
authority has, in good faith, determined and 
represented to such Federal banking agency that 
public disclosure of the information would vio-
late the laws applicable to that foreign regu-
latory or supervisory authority; and 
‘‘(B) the relevant Federal banking agency 
obtained such information pursuant to—
‘‘(i) such procedures as the Federal 
banking agency may establish for use in 
connection with the administration and en-
forcement of Federal banking laws; or 
‘‘(ii) a memorandum of understanding 
or other similar arrangement between the 
Federal banking agency and the foreign reg-
ulatory or supervisory authority. 
‘‘(2) TREATMENT
UNDER
TITLE
5, 
UNITED 
STATES CODE.—For purposes of section 552 of title 5, 
United States Code, this subsection shall be treated as 
a statute described in subsection (b)(3)(B) of such sec-
tion. 
‘‘(3) SAVINGS PROVISION.—No provision of this 
section shall be construed as—
‘‘(A) authorizing any Federal banking 
agency to withhold any information from any
duly authorized committee of the House of Rep-
resentatives or the Senate; or 
‘‘(B) preventing any Federal banking agen-
cy from complying with an order of a court of 
the United States in an action commenced by the 
United States or such agency. 
‘‘(4) FEDERAL BANKING AGENCY DEFINED.—For 
purposes of this subsection, the term ‘Federal banking 
agency’ means the Board, the Comptroller, the Fed-
eral Deposit Insurance Corporation, and the Director 
of the Office of Thrift Supervision.’’.
SEC. 611. PROHIBITION ON PARTICIPATION BY CONVICTED 
INDIVIDUAL. 
Section 19 of the Federal Deposit Insurance Act (12 
U.S.C. 1829) is amended by inserting after subsection (c) 
(as added by section 603 of this title) the following new 
subsections: 
‘‘(d) BANK HOLDING COMPANIES.—Subsections (a) 
and (b) shall apply to any bank holding company, any sub-
sidiary (other than a bank) of a bank holding company, 
and any organization organized and operated under section 
25A of the Federal Reserve Act or operating under section 
25 of the Federal Reserve Act as if such bank holding com-
pany, subsidiary, or organization were an insured deposi-
tory institution, except such subsections shall be applied for
purposes of this subsection by substituting ‘Board of Gov-
ernors of the Federal Reserve System’ for ‘Corporation’ each 
place such term appears in such subsections. 
‘‘(e) SAVINGS AND LOAN HOLDING COMPANIES.—Sub-
sections (a) and (b) shall apply to any savings and loan 
holding company and any subsidiary (other than a savings 
association) of a savings and loan holding company as if 
such savings and loan holding company or subsidiary were 
an insured depository institution, except such subsections 
shall be applied for purposes of this subsection by sub-
stituting ‘Director of the Office of Thrift Supervision’ for 
‘Corporation’ each place such term appears in such sub-
sections.’’. 
SEC. 612. CLARIFICATION THAT NOTICE AFTER SEPARA-
TION FROM SERVICE MAY BE MADE BY AN 
ORDER. 
(a) IN GENERAL.—Section 8(i)(3) of the Federal De-
posit Insurance Act (12 U.S.C. 1818(i)(3)) is amended by 
inserting ‘‘or order’’ after ‘‘notice’’ each place such term ap-
pears. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—The 
heading for section 8(i)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1818(i)(3)) is amended by inserting ‘‘OR 
ORDER’’ after ‘‘NOTICE’’.
SEC. 613. EXAMINERS OF FINANCIAL INSTITUTIONS. 
(a) OFFER OF CREDIT TO BANK EXAMINER.—Section 
212 of title 18, United States Code, is amended to read as 
follows: 
‘‘§ 212. Offer of credit to bank examiner 
‘‘(a) Subject to section 213(b), whoever being an officer, 
director or employee of a financial institution extends cred-
it to any examiner which the examiner is prohibited from 
accepting under section 213 shall be fined under this title 
or imprisoned not more than one year, or both; and may 
be fined a further sum equal to the amount of the credit 
extended. 
‘‘(b) For purposes of this section, the following defini-
tions shall apply: 
‘‘(1) The term ‘financial institution’ does not in-
clude a credit union, a Federal reserve bank, a Fed-
eral home loan bank, or a depository institution hold-
ing company. 
‘‘(2) The term ‘examiner’ means any person—
‘‘(A) appointed by a Federal financial in-
stitution regulatory agency or pursuant to the 
laws of any State to examine a financial institu-
tion; or 
‘‘(B) elected under the law of any State to 
conduct examinations of any financial institu-
tion.
‘‘(3) The term ‘Federal financial institution reg-
ulatory agency’ means—
‘‘(A) the Comptroller of the Currency; 
‘‘(B) the Board of Governors of the Federal 
Reserve System; 
‘‘(C) the Director of the Office of Thrift Su-
pervision; 
‘‘(D) the Federal Deposit Insurance Cor-
poration; 
‘‘(E) the Federal Housing Finance Board; 
‘‘(F) the Farm Credit Administration; 
‘‘(G) the Farm Credit System Insurance 
Corporation; and 
‘‘(H) the Small Business Administration.’’. 
(b) ACCEPTANCE OF CREDIT BY A BANK EXAMINER.—
Section 213 of title 18, United States Code, is amended to 
read as follows: 
‘‘§ 213. Acceptance of credit by bank examiner 
‘‘(a) Whoever, being an examiner, accepts an extension 
of credit from any financial institution that the examiner 
examines or has authority to examine, or from any person 
connected with any such financial institution, shall be fined 
under this title or imprisoned not more than one year, or 
both; and may be fined a further sum equal to the amount
of the credit extended, and shall be disqualified from holding 
office as such examiner. 
‘‘(b) Notwithstanding subsection (a) or section 212, a 
Federal financial institution regulatory agency may, by 
regulation or by order on a case-by-case basis, permit a fi-
nancial institution to extend credit to an examiner, and 
permit an examiner to accept an extension of credit from 
a financial institution, if the agency determines that the 
extension of credit would not likely affect the integrity of 
any examination of a financial institution. Before pre-
scribing regulations or issuing any order under this sub-
section, a Federal financial institution regulatory agency
shall consult with each other Federal financial institution 
regulatory agency with regard to any such regulation or 
order. Any regulation prescribed by a Federal financial in-
stitution regulatory agency under this subsection, may ex-
empt certain classes or categories of credit from the scope 
of this section or section 212, and shall provide procedures 
for examiners and financial institutions to request case-by-
case exemption orders under this subsection, subject to sub-
section (c). 
‘‘(c) In considering any request by a financial institu-
tion or examiner for a case-by-case exemption order under 
subsection (b), a Federal financial institution regulatory
agency shall consider such factors as the agency determines 
to be appropriate, including—
‘‘(1) whether the terms and conditions of the 
credit being offered the examiner are generally com-
parable to those offered by the financial institution in 
connection with similar types of credit extended to 
other customers in similar circumstances; 
‘‘(2) the nature and extent of any other relation-
ship the examiner has with the financial institution 
or any officer, director, or employee of the financial 
institution; 
‘‘(3) the proximity in time between any exam-
ination of the financial institution in which the ex-
aminer participated, or is scheduled to participate, 
and the extension, or the offer of an extension, of cred-
it; 
‘‘(4) whether there are any other circumstances 
involving the transaction, or the proposed trans-
action, that may be perceived as providing the exam-
iner with preferential treatment; and 
‘‘(5) any other fact or circumstance the agency 
may consider to be appropriate under the cir-
cumstances. 
‘‘(d) Notwithstanding subsection (a) or section 212, an 
examiner employed by a Federal financial institution regu-
latory agency may apply for and receive a credit card, or 
otherwise be approved as a cardholder, under any credit 
card account under an open end consumer credit plan, to 
the extent the terms and conditions applicable with respect 
to such account, and any credit extended under such ac-
count, are no more favorable generally to the examiner than 
the terms and conditions that are generally applicable to 
credit card accounts offered by the same financial institu-
tion to other cardholders under open end consumer credit 
plans. 
‘‘(e) For purposes of this section, the following defini-
tions shall apply: 
‘‘(1) The terms ‘examiner’, ‘Federal financial in-
stitution regulatory agency’, and ‘financial institu-
tion’ have the same meaning as in section 212. 
‘‘(2) The term ‘credit’ means the right granted 
by a creditor to a debtor to defer payment of debt or 
to incur debt and defer its payment. 
‘‘(3) The term ‘creditor’ refers only to a person 
who both (A) regularly extends, whether in connection 
with loans, sales of property or services, or otherwise, 
consumer credit which is payable by agreement in 
more than four installments or for which the payment 
of a finance charge is or may be required, and (B) 
is the person to whom the debt arising from the con-
sumer credit transaction is initially payable on the 
face of the evidence of indebtedness or, if there is no 
such evidence of indebtedness, by agreement. Notwith-
standing the preceding sentence, in the case of an 
open-end credit plan involving a credit card, the card 
issuer and any person who honors the credit card and 
offers a discount which is a finance charge are credi-
tors. 
‘‘(4) The term ‘consumer’, when used with ref-
erence to an open end credit plan, means a credit 
plan under which the party to whom credit is offered 
or extended is a natural person, and the money, prop-
erty, or services which are the subject of any trans-
action under the plan are primarily for personal, 
family, or household purposes. 
‘‘(5) The term ‘open end credit plan’ means a 
plan under which the creditor reasonably con-
templates repeated transactions, which prescribes the 
terms of such transactions, and which provides for a 
finance charge which may be computed from time to 
time on the outstanding unpaid balance. A credit 
plan which is an open end credit plan within the 
meaning of the preceding sentence is an open end 
credit plan even if credit information is verified from 
time to time.
‘‘(6) The term ‘credit card’ means any card, 
plate, coupon book or other credit device existing for 
the purpose of obtaining money, property, labor, or 
services on credit. 
‘‘(7) The term ‘cardholder’ means any person to 
whom a credit card is issued or any person who has 
agreed with the card issuer to pay obligations arising 
from the issuance of a credit card to another person. 
‘‘(8) The term ‘card issuer’ means any person 
who issues a credit card, or the agent of such person 
with respect to such card.’’. 
(c) CLERICAL AMENDMENTS.—The table of sections for 
chapter 11 of title 18, United States Code, is amended by 
striking the items relating to sections 212 and 213 and in-
serting the following new items:
‘‘212. Offer of credit to bank examiner. 
‘‘213. Acceptance of credit by bank examiner.’’.
SEC. 614. PARITY IN STANDARDS FOR INSTITUTION-AFFILI-
ATED PARTIES. 
Section 3(u)(4) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(u)(4)) is amended by striking ‘‘knowingly 
or recklessly’’.
SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS 
REGARDING FDIC DEPOSIT INSURANCE COV-
ERAGE. 
(a) IN GENERAL.—Section 18(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1828(a)) is amended by 
adding at the end the following new paragraph: 
‘‘(4) FALSE
ADVERTISING, MISUSE
OF
FDIC 
NAMES, AND MISREPRESENTATION TO INDICATE IN-
SURED STATUS.—
‘‘(A) PROHIBITION ON FALSE ADVERTISING 
AND MISUSE OF FDIC NAMES.—No person may—
‘‘(i) use the terms ‘Federal Deposit’, 
‘Federal Deposit Insurance’, ‘Federal De-
posit Insurance Corporation’, any combina-
tion of such terms, or the abbreviation
‘FDIC’ as part of the business name or firm 
name of any person, including any corpora-
tion, partnership, business trust, associa-
tion, or other business entity; or 
‘‘(ii) use such terms or any other sign 
or symbol as part of an advertisement, so-
licitation, or other document, 
to represent, suggest or imply that any deposit 
liability, obligation, certificate or share is in-
sured or guaranteed by the Federal Deposit In-
surance Corporation, if such deposit liability, ob-
ligation, certificate, or share is not insured or 
guaranteed by the Corporation. 
‘‘(B) PROHIBITION
ON
MISREPRESENTA-
TIONS
OF
INSURED
STATUS.—No person may 
knowingly misrepresent—
‘‘(i) that any deposit liability, obliga-
tion, certificate, or share is federally in-
sured, if such deposit liability, obligation, 
certificate, or share is not insured by the 
Corporation; or 
‘‘(ii) the extent to which or the manner 
in which any deposit liability, obligation, 
certificate, or share is insured by the Fed-
eral Deposit Insurance Corporation, if such 
deposit liability, obligation, certificate, or 
share is not insured by the Corporation to 
the extent or in the manner represented. 
‘‘(C) AUTHORITY OF FDIC.—The Corpora-
tion shall have—
‘‘(i) jurisdiction over any person that 
violates this paragraph, or aids or abets the 
violation of this paragraph; and 
‘‘(ii) for purposes of enforcing the re-
quirements of this paragraph with regard to 
any person—
‘‘(I) the authority of the Corpora-
tion under section 10(c) to conduct in-
vestigations; and 
‘‘(II) the enforcement authority of 
the Corporation under subsections (b), 
(c), (d) and (i) of section 8, 
as if such person were a state nonmember in-
sured bank. 
‘‘(D) OTHER
ACTIONS
PRESERVED.—No 
provision of this paragraph shall be construed as 
barring any action otherwise available, under 
the laws of the United States or any State, to 
any Federal or State law enforcement agency or 
individual.’’. 
(b) ENFORCEMENT ORDERS.—Section 8(c) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1818(c)) is amended 
by adding at the end the following new paragraph: 
‘‘(4) FALSE ADVERTISING OR MISUSE OF NAMES 
TO INDICATE INSURED STATUS.—
‘‘(A) TEMPORARY ORDER.—
‘‘(i) IN
GENERAL.—If a notice of 
charges served under subsection (b)(1) of 
this section specifies on the basis of par-
ticular facts that any person is engaged in 
conduct described in section 18(a)(4), the
Corporation may issue a temporary order 
requiring—
‘‘(I) the immediate cessation of 
any activity or practice described, 
which gave rise to the notice of charges; 
and 
‘‘(II) affirmative action to prevent 
any further, or to remedy any existing, 
violation. 
‘‘(ii) EFFECT
OF
ORDER.—Any tem-
porary order issued under this subpara-
graph shall take effect upon service. 
‘‘(B) EFFECTIVE
PERIOD
OF
TEMPORARY 
ORDER.—A temporary order issued under sub-
paragraph (A) shall remain effective and en-
forceable, pending the completion of an adminis-
trative proceeding pursuant to subsection (b)(1) 
in connection with the notice of charges—
‘‘(i) until such time as the Corporation 
shall dismiss the charges specified in such 
notice; or 
‘‘(ii) if a cease-and-desist order is 
issued against such person, until the effec-
tive date of such order.
‘‘(C) CIVIL MONEY PENALTIES.—Violations 
of section 18(a)(4) shall be subject to civil money 
penalties as set forth in subsection (i) in an 
amount not to exceed $1,000,000 for each day 
during which the violation occurs or continues.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 18(a)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1828(a)) is amended—
(A) in the 1st sentence by striking ‘‘of this 
subsection’’ and inserting ‘‘of paragraphs (1) 
and (2)’’; 
(B) by striking the 2nd sentence; and 
(C) in the 3rd sentence, by striking ‘‘of this 
subsection’’ and inserting ‘‘of paragraphs (1) 
and (2)’’. 
(2) The heading for subsection (a) of section 18 
of the Federal Deposit Insurance Act (12 U.S.C. 
1828(a)) is amended by striking ‘‘INSURANCE 
LOGO.—’’ and inserting ‘‘REPRESENTATIONS OF DE-
POSIT INSURANCE.—’’. 
SEC. 616. COMPENSATION OF FEDERAL HOME LOAN BANK 
DIRECTORS. 
Section 7(i) of the Federal Home Loan Bank Act (12 
U.S.C. 1427(i)) is amended to read as follows: 
‘‘(i) DIRECTORS’ COMPENSATION.—
100
‘‘(1) IN
GENERAL.—Each Federal home loan 
bank may pay the directors on the board of directors 
of the bank reasonable compensation for the time re-
quired of such directors, and reasonable expenses in-
curred by the directors, in connection with service on 
the board of directors, in accordance with resolutions 
adopted by the board of directors and subject to the 
approval of the board. 
‘‘(2) ANNUAL REPORT BY THE BOARD.—Informa-
tion regarding compensation and expenses paid by 
the Federal home loan banks to the directors on the 
boards of directors of the banks shall be included in 
the annual report submitted to the Congress by the 
Board pursuant to section 2B(d).’’.
SEC. 617. EXTENSION OF TERMS OF FEDERAL HOME LOAN 
BANK DIRECTORS. 
(a) IN GENERAL.—Section 7(d) of the Federal Home 
Loan Bank Act (12 U.S.C. 1427(d)) is amended—
(1) in the first sentence, by striking ‘‘3 years’’ 
and inserting ‘‘4 years’’; and 
(2) in the 2nd sentence—
(A) by striking ‘‘Federal Home Loan Bank 
System Modernization Act of 1999’’ and insert-
ing ‘‘Financial Services Regulatory Relief Act of 
2003’’; and
113
Company Act of 1956 (12 U.S.C. 1843(h)) are each amend-
ed by striking ‘‘(G), (H), (I), or (J) of section 2(c)(2)’’ and 
inserting ‘‘(G), or (H) of section 2(c)(2)’’.
Union Calendar No. 113
108TH CONGRESS 
1ST SESSION 
H. R. 1375
[Report No. 108–152, Parts I and II] 
A BILL 
To provide regulatory relief and improve produc-
tivity for insured depository institutions, and for 
other purposes. 
JULY 14, 2003
Reported from the Committee on the Judiciary with an 
amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be 
printed