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 PREMERGER 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
‘‘205(b)(3) of the Federal Credit Union Act (12
U.S.C. 1785(b)(3),’’ before ‘‘or section 3’’.
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 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 or
trust company’’;
(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 an insured depository
institution, a State, other than the home State of
the depository institution, in which the deposi-
tory institution maintains, or seeks to establish
and maintain, a branch; and
‘‘(B) with respect to a trust company, 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 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 same meaning as in section 44(g) of the Federal
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
amended—
(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 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