HR 3505 RFS 
‘‘(2) such services only at locations in a State 
in which each such shareholder or member is author-
ized to perform such services.’’. 
(11) 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’’. 
(12) 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)— 
(i) by striking ‘‘insured bank’’ and in-
serting ‘‘insured depository institution’’; 
(ii) by inserting ‘‘authorized only’’ 
after ‘‘performs any service’’; and 
(iii) by inserting ‘‘authorized only’’ 
after ‘‘perform any activity’’; and 
(C) in subsection (c)— 
(i) by striking ‘‘the bank or banks’’ 
and inserting ‘‘any depository institution’’; 
and 
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(ii) by striking ‘‘capability of the 
bank’’ and inserting ‘‘capability of the de-
pository institution’’. 
(13) 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 insti-
tution’’; 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 de-
pository institution’’. 
SEC. 407. CROSS GUARANTEE AUTHORITY. 
Subparagraph (A) of section 5(e)(9) of the Federal 
Deposit 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 
Insurance Act (12 U.S.C. 1828(k)) is amended— 
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(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 
institution 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 regula-
tions 
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 institu-
tion holding company’’ and inserting ‘‘covered com-
pany’’; 
(5) in paragraph (3)(A), by striking ‘‘holding 
company’’ and inserting ‘‘covered company’’; 
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(6) in paragraph (4)(A)— 
(A) by striking ‘‘depository institution 
holding 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 de-
pository institution.’’; and 
(9) in paragraph (6)— 
(A) by striking ‘‘depository institution 
holding company’’ and inserting ‘‘covered com-
pany,’’; and 
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(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’’. 
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SEC. 410. COMMUNITY REINVESTMENT CREDIT FOR ESOPS 
AND EWOCS. 
Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903) is amended by adding at the end 
the following new subsection— 
‘‘(d) ESTABLISHMENT OF ESOPS AND EWOCS.— 
‘‘(1) IN
GENERAL.—In assessing and taking 
into account, under subsection (a), the record of a 
financial institution, the appropriate Federal finan-
cial supervisory agency shall consider as a factor ac-
tivities that support or enable the establishment of 
employee stock ownership plans or eligible worker- 
owned cooperatives, so long as the employer spon-
soring the plan or cooperative is at least 51 percent 
owned by employees, including low to moderate in-
come employees. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
‘‘(A) 
EMPLOYEE
STOCK
OWNERSHIP 
PLAN.—The term ‘employee stock ownership 
plan’ has the same meaning as in section 
4975(e)(7) of the Internal Revenue Code of 
1986. 
‘‘(B) ELIGIBLE WORKER-OWNED COOPERA-
TIVE.—The term ‘eligible worker-owned cooper-
ative’ has the same meaning as in section 
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