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Sec. 101. Regulation of real estate lending
Sec. 102. Real estate appraisal amendment.
Sec. 103. Public deposits.
Subtitle B—Impact of Accounting and Capital Issues on Credit Availability
Sec. 111. Audit costs.
Sec. 112. Recourse agreements.
Sec. 113. Market value accounting.
Sec. 114. Report on capital standards and their impact on the economy.
Sec. 115. Minimize potential impact of capital standards on credit availability.
Subtitle C—Disincentives to Risk-Taking
Sec. 121. Due process protections.
Sec. 122. Culpability standards for outside directors.
Subtitle D—Miscellaneous Credit Availability Provisions
Sec. 131. Regulatory appeals process.
Sec. 132. Aggregate limits on insider lending.
Sec. 133. Sterile reserves studies.
Sec. 134. Credit card accounts receivable sales.
Sec. 135. Changes to The Federal Home Loan Bank Act to promote credit
availability.
TITLE II—REGULATORY MICROMANAGEMENT
Sec. 201. Regulatory standards.
Sec. 202. Paperwork reduction review.
Sec. 203. Rules on deposit taking.
Sec. 204. Adequate transition period for new regulations.
TITLE III—UNNECESSARY COST, PAPERWORK, AND REGULATION
Subtitle A—General Provisions
Sec. 301. Annual examinations.
Sec. 302. Coordinated examinations.
Sec. 303. Differences in accounting principles.
Sec. 304. Reduction of call report burdens.
Sec. 305. Regulatory review of capital compliance burden.
Sec. 306. Branch closures.
Sec. 307. Bank Secrecy Act amendments.
Sec. 308. Clarifying amendments.
Sec. 309. Limiting potential liability on foreign accounts.
Sec. 310. Repeal out-dated statutory provision.
Subtitle B—Holding Company Efficiencies
Sec. 321. Expedited procedures for forming a bank holding company.
Sec. 322. Exemption of certain holding company formations from registration
under the Securities Act of 1933.
Sec. 323. Expedited procedures for bank holding companies to seek approval to
engage in nonbanking activities.
Sec. 324. Reduction of postapproval waiting period for bank holding company
acquisitions.
Sec. 325. Reduction of postapproval waiting period for bank mergers.
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TITLE IV—CONSUMER INCONVENIENCE, PAPERWORK, AND COST;
OTHER NONSUPERVISORY REFORMS
SUBTITLE A—CONSUMER BENEFITS AND LENDING PROCESS IMPROVEMENTS
Sec. 401. Streamlined lending process for consumer benefit.
Sec. 402. Exemption for certain borrowers.
Sec. 403. Modification of waiver of right of rescission.
Sec. 404. Alternative disclosures for adjustable rate mortgages.
Sec. 405. Exemption for business accounts.
Sec. 406. Elimination of duplicate disclosures for home equity loans.
Subtitle B—Other Nonsupervisory Reforms
Part 1—Expedited Funds Availability and Electronic Transfers
Sec. 411. Availability schedules.
Sec. 412. Definition of a new account.
Sec. 413. Jurisdiction.
Sec. 414. Unauthorized electronic fund transfers.
PART 2—AMENDMENTS TO THE TRUTH IN LENDING ACT
Sec. 421. Liability for unauthorized use of credit cards.
PART 3—HOMEOWNERSHIP AMENDMENTS
Sec. 431. Home mortgage disclosure act exemption.
Sec. 432. Homeownership debt counseling notification.
Sec. 433. Elimination of duplicative data collection.
PART 4—AMENDMENTS TO THE REAL ESTATE SETTLEMENTS PROCEDURES
ACT
Sec. 441. Clarify disclosure requirements.
Sec. 442. Exemption of business loans.
TITLE V—COMMUNITY INVESTMENT
Sec. 501. Community Reinvestment Act amendments.
TITLE I—REGULATORY IMPACT ON
CREDIT AVAILABILITY
Subtitle A—General Provisions
SEC. 101. REGULATION OF REAL ESTATE LENDING.
Subsection (o) of section 18 of the Federal Deposit
Insurance Act (12 U.S.C. 1828(o)) (as added by section
304 of the Federal Insurance Corporation Improvement
Act of 1991) is amended—
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(a) by redesignating paragraph (4) as para-
graph (5); and
(b) by inserting new paragraph (4) as follows:
‘‘(4) CONSIDERATION OF PARTICULAR IMPACT.—In
prescribing standards under paragraph (1), the appro-
priate Federal banking agencies shall, consistent with
safety and soundness,—
‘‘(A) consider the impact that such standards
have on the availability of credit for small business,
residential, and agricultural purposes, and on low-
and moderate-income communities; and
‘‘(B) minimize the negative impact that these
standards have on the availability of credit for such
purposes and in such areas.’’
SEC. 102. REAL ESTATE APPRAISAL AMENDMENT.
Section 1122 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351)
is amended—
(a) by redesignating subsections (b), (c), (d)
and (e) as subsections (c), (d), (e) and (f), respec-
tively;
(b) by adding the following new subsection (b):
‘‘(b) RECIPROCITY.—The Appraisal Subcommittee
shall encourage the States to develop reciprocity agree-
ments among themselves so as to readily authorize ap-
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praisers licensed or certified in one State and in good
standing with their State appraiser certifying or licensing
agency to perform appraisals in another State or States
as though they were licensed or certified in that State or
States.’’; and
(c) by adding at the end of subsection (a)(3) the fol-
lowing new sentence: ‘‘A State appraiser certifying or li-
censing agency shall not impose excessive fees or burden-
some requirements for temporary practice under this sub-
section, as determined by the Appraisal Subcommittee.’’.
SEC. 103. PUBLIC DEPOSITS.
Section 13(e) of the Federal Deposit Insurance Act
(12 U.S.C. 1823(e)) is amended—
(a) by inserting ‘‘(1) IN GENERAL.—’’ before
‘‘No agreement which tends’’;
(b) by redesignating paragraphs (1), (2), (3)
and (4) as subparagraphs (A), (B), (C) and (D) re-
spectively; and
(c) by inserting the following new paragraph
(2):
‘‘(2) EXCEPTION.—This subsection shall not apply to
any agreement permitting or affecting the deposit custody
or collateralization of funds of any public entity.’’.
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Subtitle B—Impact of Accounting and Capital
Issues on Credit Availability
SEC. 111. AUDIT COSTS.
(a) IN GENERAL.—Section 36 of the Federal Deposit
Insurance Act (12 U.S.C. 1831m) (as added by section
112 of the Federal Deposit Insurance Corporation Im-
provement Act of 1991) is amended—
(1) AUDITOR ATTESTATIONS.—
(A) in subsection (a)(2)(A)(ii), by striking
‘‘subsections (c) and (d)’’ and inserting ‘‘sub-
section (c)’’;
(B) by striking subsection (c);
(C) in subsection (d), by deleting ‘‘(d)’’
and inserting ‘‘(c)’’; and
(D) by striking subsection (e);
(2) DUPLICATIVE
REPORTING.—in subsection
(i), by striking ‘‘if—(1) services and functions’’ and
all that follows through ‘‘or the appropriate Federal
banking agency.’’ and inserting ‘‘if services and
functions comparable to those required under this
section are provided at the holding company level.’’;
(3) INDEPENDENT AUDIT COMMITTEES.—
(A) in subsection (g)(1)(A), by striking
‘‘entirely’’ and inserting ‘‘the majority of which
is’’;
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(B) in subsection (g)(1)(C),
(i) by inserting ‘‘and’’ after the semi-
colon in clause (i), and by striking ‘‘; and’’
in clause (ii) and inserting ‘‘.’’; and
(ii) by striking clause (iii);
(C) in subsection (g)(1), by inserting the
following new subparagraph:
‘‘(D) EXEMPTIVE AUTHORITY.—Each ap-
propriate Federal banking agency shall, by reg-
ulation, exempt from the requirements of this
subsection all insured depository institutions
which face hardships in retaining competent di-
rectors on their internal audit committees as a
result of this subsection. In determining what
types of institutions will be exempted, the agen-
cy shall consider such factors as the size of the
institution and the availability of competent
outside directors in the community.’’; and
(4) 
PUBLIC
AVAILABILITY.—In 
subsection
(a)(3), by inserting at the end the following new sen-
tence—‘‘Notwithstanding the previous sentence, the
Corporation and the appropriate Federal banking
agencies may designate certain information as privi-
leged and confidential and not available to the pub-
lic.’’.
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(5) 
QUARTERLY
REPORTS.—In 
subsection
(g)(2), by inserting the following new subparagraph
(D)—
‘‘(D) NOTICE TO INSTITUTION.—Upon de-
termining that an institution’s quarterly reports
shall be subject to the requirements of subpara-
graph (A), the Corporation shall promptly pro-
vide the institution with written notice of such
determination.’’.
(6) by redesignating subsections (f) through (j)
as subsections (d) through (h), respectively.
(b) EFFECTIVE DATE.—Section 112(b) of the Fed-
eral Deposit Insurance Corporation Improvement Act of
1991 is amended by striking ‘‘December 31, 1992’’ and
inserting ‘‘December 31, 1993’’.
SEC. 112. RECOURSE AGREEMENTS.
Section 37(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1831n(b)) (as added by section 121 of the Fed-
eral Deposit Insurance Corporation Improvement Act of
1991) is amended by adding at the end the following new
paragraph (3):
‘‘(3) RECOURSE
AGREEMENTS.—Each appro-
priate Federal banking agency shall require insured
depository institutions to use accounting principles
consistent with generally accepted accounting prin-
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The report shall contain any recommendations with
respect to capital standards that the Department of the
Treasury may wish to provide.
(b) DEFINITION.—For purposes of this section, the
terms ‘‘Federal banking agency’’ and ‘‘insured depository
institution’’ have the same meanings as in section 3 of
the Federal Deposit Insurance Act.
SEC. 115. MINIMIZE POTENTIAL IMPACT OF CAPITAL
STANDARDS ON CREDIT AVAILABILITY.
Section 305 of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991 (12 U.S.C. 1828 note)
is amended—
(a) in subsection (b)(1)(A)—
(1) by striking clauses (ii) and (iii);
(2) by striking ‘‘(A) take adequate account
of—(i) interest-rate risk’’ and inserting ‘‘(A)
take adequate account of interest-rate risk;
and’’.
(b) by striking paragraph (3) in subsection (b) and
inserting the following new paragraph (3):
‘‘(3) 
TIMING
FOR
PRESCRIBING
REVISED
STANDARDS.—
‘‘(A) INTEREST
RATE
RISK.—No appro-
priate Federal banking agency shall prescribe
final regulations in the Federal Register to im-
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plement subparagraph (A) of paragraph (1) of
this subsection prior to—
‘‘(i) the implementation of similar
standards at an international level; and
‘‘(ii) the establishment of reasonable
transition rules, subsequent to the occur-
rence specified in clause (i), to facilitate
compliance with those regulations.
‘‘(B) MULTIFAMILY
MORTGAGES.—Each
appropriate Federal banking agency shall—
‘‘(i) publish final regulations in the
Federal Register to implement paragraph
(1)(B) not later than 18 months after the
date of enactment of this Act; and
‘‘(ii) establish reasonable transition
rules to facilitate compliance with those
regulations.’’.
Subtitle C—Disincentives to Risk-Taking
SEC. 121. DUE PROCESS PROTECTIONS.
(a) ATTACHMENT OF ASSETS.—
(1) INSURED DEPOSITORY INSTITUTIONS.—
(A) section 11(d)(19) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(d)(19)) is
amended—
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(i) in subparagraph (A), by striking
‘‘without regard’’ and all that follows
through ‘‘immediate’’; and
(ii) in subparagraph (B), by striking
‘‘(as modified with respect to such proceed-
ing by subparagraph (A))’’.
(B) section 8(b) of the Federal Deposit In-
surance Act (12 U.S.C. 1818(b)) is amended by
redesignating subsection (b)(6)(F) as sub-
section (b)(6)(G), and inserting after subsection
(b)(6)(E) the following:
‘‘(F) prohibit such person from withdrawing,
transferring, removing, dissipating, or disposing of
any funds, assets or other property where injury,
loss, or damage to such property is irreparable and
immediate; and’’.
(C) section 8(i) of the Federal Deposit In-
surance Act (12 U.S.C. 1818(i)) is amended by
striking paragraph (4)(B) and inserting the fol-
lowing:
‘‘(B) STANDARD.—Rule 65 of the Federal
Rules of Civil Procedure shall apply with respect to
any proceeding under this paragraph.’’.
(2) CREDIT UNIONS.—
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(A) Section 207(b)(2)(H) of the Federal
Credit Union Act (12 U.S.C. 1787(b)(2)(H)) is
amended—
(i) in clause (i), by striking ‘‘without
regard’’ and all that follows through ‘‘im-
mediate’’; and
(ii) in clause (ii), by striking ‘‘(as
modified with respect to such proceeding
by clause (i))’’.
(B) Section 206(e)(3) of the Federal Cred-
it Union Act (12 U.S.C. 1786(e)(3)) is amend-
ed by redesignating subsection (e)(3)(F) as sub-
section (e)(3)(G), and inserting after subsection
(e)(3)(E) the following:
‘‘(F) prohibit such person from withdrawing, trans-
ferring, removing, dissipating, or disposing of any funds,
assets or other property where injury, loss, or damage to
such property is irreparable and immediate; and’’.
SEC. 122. CULPABILITY STANDARDS FOR OUTSIDE DIREC-
TORS.
Section 3(u) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(u)) is amended—
(a) in paragraph (1), by inserting ‘‘(other than
an outside director’’) after ‘‘director’’;
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(b) in paragraph (3), by inserting ‘‘(other than
an outside director’’) after ‘‘any other person’’; and
(c) in paragraph (4), by inserting ‘‘or outside
director’’ after ‘‘or accountant)’’.
SUBTITLE D—MISCELLANEOUS CREDIT AVAILABILITY
PROVISIONS
SEC. 131. REGULATORY APPEALS PROCESS.
(a) IN GENERAL.—Not later than 180 days after the
date of enactment of this Act, each appropriate Federal
banking agency and the National Credit Union Adminis-
tration shall establish an independent appellate process
within its agency responsible for reviewing material super-
visory determinations made at insured depository institu-
tions or credit unions that it supervises.
(b) REVIEW PROCESS.—In establishing this inde-
pendent appellate process, each agency shall ensure—
(1) that any appeal of a supervisory determina-
tion from any insured depository institution or credit
union, or any officer, director, employee or other
representative of any insured depository institution
or credit union, be heard and decided expeditiously;
(2) that appropriate safeguards exist for pro-
tecting the appellant from retaliation by agency ex-
aminers; and
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(3) that the ruling agency officer have the au-
thority, where appropriate and as justice so requires,
to stay the supervisory determination pending com-
pletion of the appellate process.
(c) COMMENT PERIOD.—Each agency shall provide
public notice and opportunity for comment on proposed
guidelines for an appellate process not later than 90 days
after enactment of this Act.
(d) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘agency’’ shall refer to the appro-
priate Federal banking agency and the National
Credit Union Administration;
(2) the terms ‘‘insured depository institution’’
and ‘‘appropriate Federal banking agency’’ have the
same meanings as in section 3 of the Federal De-
posit Insurance Act; and
(3) the term ‘‘material supervisory determina-
tion’’ includes determinations relating to exam rat-
ings, the adequacy of loan loss reserve provisions,
and loan classifications on loans significant to the
institution.
SEC. 132. AGGREGATE LIMITS ON INSIDER LENDING.
Section 22(h)(5) of the Federal Reserve Act (12
U.S.C. 375b(5)) (as amended by section 306 of the Fed-
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eral Deposit Insurance Corporation Improvement Act of
1991) is amended—
(a) by redesignating subparagraph (C) as sub-
paragraph (D);
(b) by inserting the following new subparagraph
(C):
‘‘(C) SMALL BANK EXCEPTION.—Notwithstanding
subparagraph (A), member banks with less than
$100,000,000 in deposits may make such extensions of
credit in the aggregate to persons specified in subpara-
graph (A) in an amount not to exceed 2 times the bank’s
unimpaired capital and unimpaired surplus.’’; and
(c) in subparagraph (D), as redesignated, by
striking ‘‘less than $100,000,000’’ and inserting
‘‘between $100,000,000 and $250,000,000’’.
SEC. 133. STERILE RESERVES STUDIES.
(a) FEDERAL RESERVE STUDY.—No later than 90
days after enactment of this Act, the Board of Governors
of the Federal Reserve System, in consultation with the
Federal Deposit Insurance Corporation, shall study and
report to Congress on—
(1) the necessity, for monetary policy purposes,
of continuing to require insured depository institu-
tions to maintain sterile reserves;
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(2) the appropriateness of paying insured de-
pository institutions with a market rate of interest
on sterile reserves, or in the alternative, providing
payment of this interest into the appropriate deposit
insurance fund;
(3) the monetary impact that the failure to pay
interest on sterile reserves has had on insured depos-
itory institutions, including an estimate of the total
dollar amount of interest and potential income lost
by insured depository institutions;
(4) the degree to which the failure to pay inter-
est on sterile reserves has impacted upon economic
growth; and
(5) the impact that failure to pay interest on
sterile reserves has had on the ability of the banking
industry to compete with nonbanking providers of fi-
nancial services and with foreign banks.
(b) BUDGETARY IMPACT STUDY.—No later than 90
days after enactment of this Act, the Office of Manage-
ment and Budget and the Congressional Budget Office,
in consultation with the Senate and House Committees on
the Budget, shall jointly study and report to Congress on
the budgetary impact of—
(1) paying insured depository institutions a
market rate of interest on sterile reserves; and
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(2) paying such interest into the respective de-
posit insurance funds.
(c) DEFINITION.—For purposes of this section, the
term ‘‘insured depository institution’’ has the same mean-
ing as in section 3 of the Federal Deposit Insurance Act.
SEC. 134. CREDIT CARD ACCOUNTS RECEIVABLE SALES.
Section 11(e) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(e)) is amended by adding at the end the
following new paragraphs:
‘‘(14) SELLING CREDIT CARD ACCOUNTS RECEIV-
ABLE.—
‘‘(A) 
NOTIFICATION
REQUIRED.—An
undercapitalized insured depository institution (as
defined in section 38) shall notify the Corporation in
writing before entering into an agreement to sell
credit card accounts receivable.
‘‘(B) WAIVER BY CORPORATION.—The Corpora-
tion may at any time, in its sole discretion and upon
such terms as it may prescribe, waive its right to re-
pudiate an agreement to sell credit card accounts re-
ceivable if the Corporation—
‘‘(i) determines that the waiver is in the
best interests of the deposit insurance fund;
and
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‘‘(ii) provides a written waiver to the sell-
ing institution.
‘‘(C) EFFECT OF WAIVER ON SUCCESSORS.—
‘‘(i) IN GENERAL.—If, under subparagraph
(B), the Corporation has waived its right to re-
pudiate an agreement to sell credit card ac-
counts receivable—
‘‘(I) any provision of the agreement
that restricts solicitation of a credit card
customer of the selling institution, or the
use of a credit card customer list of the in-
stitution, shall bind any receiver or con-
servator of the institution; and
‘‘(II) the Corporation shall require
any acquirer of the selling institution, or of
substantially all of the selling institution’s
assets or liabilities, to agree to be bound
by a provision described in subclause (I) as
if the acquirer were the selling institution.
‘‘(ii) 
EXCEPTION.—Clause 
(i)(II) 
does
not—
‘‘(I) restrict the acquirer’s authority
to offer any product or service to any per-
son identified without using a list of the
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selling institution’s customers in violation
of the agreement;
‘‘(II) require the acquirer to restrict
any preexisting relationship between the
acquirer and a customer; or
‘‘(III) apply to any transaction in
which the acquirer acquires only insured
deposits.
‘‘(D) WAIVER
NOT
ACTIONABLE.—The Cor-
poration shall not, in any capacity, be liable to any
person for damages resulting from waiving or failing
to waive the Corporation’s right under this section
to repudiate any contract or lease, including an
agreement to sell credit card accounts receivable. No
court shall issue any order affecting any such waiver
or failure to waive.
‘‘(E) OTHER
AUTHORITY
NOT
AFFECTED.—
This paragraph does not limit any other authority of
the Corporation to waive the Corporation’s right to
repudiate an agreement or lease under this section.
‘‘(15) CERTAIN CREDIT CARD CUSTOMER LISTS
PROTECTED.—
‘‘(A) IN GENERAL.—If any insured depository
institution sells credit card accounts receivable under
an agreement negotiated at arm’s length that pro-
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vides for the sale of the institution’s credit card cus-
tomer list, the Corporation shall prohibit any party
to a transaction with respect to the institution under
this section or section 13 from using the list except
as permitted under the agreement.
‘‘(B) 
FRAUDULENT
TRANSACTIONS
EX-
CLUDED.—Subparagraph (A) does not limit the Cor-
poration’s authority to repudiate any agreement en-
tered into with the intent to hinder, delay, or de-
fraud the institution, the institution’s creditors, or
the Corporation.’’.
SEC. 135. CHANGES TO THE FEDERAL HOME LOAN BANK
ACT TO PROMOTE CREDIT AVAILABILITY
(a) Section 10(a) of the Federal Home Loan Bank
Act (12 U.S.C. 1430(a)) is amended—
(1) by redesignating subparagraphs (4) and (5)
as subparagraphs (5) and (6), respectively;
(2) in newly redesignated subparagraph (5) (as
redesignated by subsection (a)(1) of this section), by
inserting ‘‘nonresidential’’ after the first ‘‘Other’’;
(3) by inserting new subparagraph (4) as fol-
lows:
‘‘(4) Other residential real estate-related collat-
eral acceptable to the Bank.’’; and
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(b) in subsection (b), by inserting ‘‘subject to
this section’’ after ‘‘all insured depository institu-
tions and depository institution holding companies’’;
(c) in subsection (c), by inserting ‘‘subject to
this section’’ after ‘‘all insured depository institu-
tions’’;
(d) in subsection (e)(1)(A), by inserting ‘‘sub-
ject to this section’’ after ‘‘insured depository insti-
tution or depository institution holding company’’;
(e) in subsection (e)(2), by inserting ‘‘subject to
this section’’ after ‘‘insured depository institutions
or depository institution holding company’’; and
(f) by inserting the following new subsection
(h):
‘‘(h) APPLICABILITY.—
‘‘(1) IN GENERAL.—This section shall not apply
to any adequately capitalized or well capitalized in-
sured depository institution (as defined in section
38) which has a CAMEL composite rating of 1 or
2 under the Uniform Financial Institution Rating
System or an equivalent rating under a comparable
system.
‘‘(2) DISCRETION.—Each appropriate Federal
banking agency may waive compliance with the re-
quirements of this section, either partially or fully
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and on a case-by-case basis, where such action will
not threaten the safety and soundness of the institu-
tion.’’.
SEC. 202. PAPERWORK REDUCTION REVIEW.
Not later than 180 days after the date of enactment
of this Act, each appropriate Federal banking agency, in
consultation with insured depository institutions and other
interested parties, shall—
(a) review the extent to which current regula-
tions require insured depository institutions to
produce unnecessary internal written policies; and
(b) eliminate such requirements, where appro-
priate.
For purposes of this section, the terms ‘‘insured deposi-
tory institution’’ and ‘‘appropriate Federal banking agen-
cy’’ have the same meanings as in section 3 of the Federal
Deposit Insurance Act.
SEC. 203. RULES ON DEPOSIT TAKING.
Section 29(g)(3) of the Federal Deposit Insurance
Act (12 U.S.C. 1831f(g)(3)) is amended—
(1) by inserting ‘‘undercapitalized’’ after ‘‘in-
cludes any’’; and
(2) by inserting ‘‘undercapitalized’’ after ‘‘em-
ployee of any’’.
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SEC. 204. ADEQUATE TRANSITION PERIOD FOR NEW REGU-
LATIONS.
(a) ADEQUATE TRANSITION PERIOD FOR NEW REG-
ULATIONS.—No new regulation issued by a Federal bank-
ing agency which imposes additional reporting, disclosure
or other requirements on insured depository institutions
shall be effective prior to 180 days from the date that reg-
ulation becomes final unless—
(1) the agency makes a finding that an emer-
gency exists which requires sooner action or that
such a delay would have a substantial impact upon
the safety and soundness of the industry; or
(2) explicitly directed by Congress.
(b) DEFINITION.—For purposes of this section, the
terms ‘‘Federal banking agency’’ and ‘‘insured depository
institution’’ have the same meanings as in section 3 of
the Federal Deposit Insurance Act.
TITLE III—UNNECESSARY COST,
PAPERWORK AND REGULATION
Subtitle A—General Provisions
SEC. 301. ANNUAL EXAMINATIONS.
(a) IN GENERAL.—Section 10 of the Federal Deposit
Insurance Act (12 U.S.C. 1820) (as amended by section
111 of the Federal Deposit Insurance Corporation Im-
provement Act of 1991) is amended—
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(1) SMALL INSTITUTION TREATMENT.—In sub-
section (d), delete paragraph (4) and insert the fol-
lowing new paragraph:
(4) 2-YEAR RULE FOR CERTAIN SMALL INSTI-
TUTIONS.—Paragraphs (1), (2), and (3) shall apply
with ‘24-month’ substituted for ‘12-month’ if—
‘‘(A) the insured depository institution has
total assets of less than $250,000,000;
‘‘(B) the institution is well capitalized, as
defined in section 38;
‘‘(C) when the institution was most re-
cently examined, it was found to be well man-
aged, had solid earnings, had been profitable
for the previous 2 years, and its composite con-
dition was found to be good;
‘‘(D) the insured depository institution is
not currently subject to a formal enforcement
order by the appropriate Federal banking agen-
cy; and
‘‘(E) no person acquired control of the in-
stitution during the 12-month period in which
a full-scope, on-site examination would be re-
quired but for this paragraph.
‘‘The dollar amount in the preceding sentence shall
be adjusted annually after December 31, 1992, by the an-
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nual percentage increase in the Consumer Price Index for
Urban Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.’’.
(2) STATE EXAMINATIONS.—In subsection (d),
delete paragraph (3) and insert the following new
paragraph:
‘‘(3) STATE EXAMINATIONS ACCEPTABLE.—The
examination requirement established under para-
graph (1) may be satisfied by an examination of the
insured depository institution conducted by the state
during the 12-month period if the appropriate Fed-
eral banking agency determines that the state exam-
ination carries out the purposes of this subsection.’’.
(3) CERTAIN DEPOSITORY INSTITUTIONS WITH-
IN HOLDING COMPANIES.—At the end of subsection
(d), add the following new paragraph:
‘‘(7) CERTAIN INSTITUTIONS WITHIN DEPOSI-
TORY INSTITUTION HOLDING COMPANIES.—The ap-
propriate Federal banking agency may exempt any
insured depository institution owned or controlled by
a depository institution owned or controlled by a de-
pository institution holding company from the re-
quirements of this subsection where—
‘‘(A) the agency is satisfied, after review-
ing the holding company’s internal controls and
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examination procedures, that adequate controls
and procedures exist within the holding com-
pany structure; or
‘‘(B) the insured depository institutions
owned or controlled by the depository institu-
tion holding company which hold a substantial
majority of the total assets of all insured depos-
itory institution assets owned or controlled by
the depository institution holding company have
been examined pursuant to the requirements of
this subsection.’’.
SEC. 302. COORDINATED EXAMINATIONS.
(a) COORDINATED STATE AND FEDERAL EXAMINA-
TIONS.—Section 10(d) of the Federal Deposit Insurance
Act (12 U.S.C. 1820(d)) (as amended by section 301 of
this Act) is amended by inserting after paragraph (7) the
following new paragraph:
‘‘(8) COORDINATED EXAMINATIONS.—Each ap-
propriate Federal banking agency shall, to the ex-
tent practicable—
‘‘(A) coordinate all examinations to be con-
ducted by that agency at an insured depository
institution; and
‘‘(B) work with other appropriate Federal
banking agencies and appropriate State bank
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supervisors to coordinate examinations to be
conducted at an insured depository institution.
so as to minimize the disruptive effects of such examina-
tions on institution operations.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 3(r) of the Federal Deposit Insurance Act (12
U.S.C. 1813 (r)) is amended to read as follows:
‘‘(r) APPROPRIATE STATE BANK SUPERVISOR.—The
term ‘appropriate State bank supervisor’ means any offi-
cer, agency, or other entity of any state which has primary
regulatory authority over State banks or State savings as-
sociations in such State.’’.
SEC. 303. DIFFERENCES IN ACCOUNTING PRINCIPLES.
Section 37(a)(2) of the Federal Deposit Insurance
Act (12 U.S.C. 1831n(a)(2)) (as added by section 121 of
the Federal Deposit Insurance Corporation Improvement
Act of 1991) is amended by adding the following new sub-
paragraph (C)—
‘‘(C) MINIMIZE
DIFFERENCES.—Notwith-
standing subparagraph (B), each appropriate
Federal banking agency and the Corporation
shall require insured depository institutions to
use accounting principles consistent with gen-
erally accepted accounting principles to the ex-
tent practicable so as to minimize differences
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between statements and reports, and thereby
reduce the compliance burdens and costs on in-
sured depository institutions.’’.
SEC. 304. REDUCTION OF CALL REPORT BURDENS.
(a) REGULATORY REVIEW OF CALL REPORT BUR-
DENS.—
(1) IN
GENERAL.—Within 60 days after the
date of enactment of this Act, each appropriate Fed-
eral banking agency shall review the regulatory bur-
den and costs incurred by insured depository institu-
tions during their preparation of reports of condi-
tion.
(2) FACTORS TO BE CONSIDERED.—In conduct-
ing its review, each agency shall consider all relevant
factors that it deems necessary to correctly deter-
mine the extent of the burden and costs, including—
(A) the actual dollar cost to financial insti-
tutions in preparing such reports;
(B) the time and resources expended to
meet regulatory directives;
(C) the frequency in which the agency has
modified the type(s) of information required to
be reported in such reports and the costs and
burdens associated with complying with such
modifications; and
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(D) the extent to which such costs and
burdens, viewed within the overall context of
the total regulatory burden and cost incurred
by insured depository institutions in their day-
to-day operations, impact upon the availability
of credit.
(3) CORRECTIVE MEASURES.—After conducting
its review, each appropriate Federal banking agency
shall revise its call report requirements to remove
any unnecessary burdens and costs. Prior to any
subsequent modification in call report requirements,
each agency shall consider the extent to which such
modifications impose unnecessary regulatory burdens
and costs upon insured depository institutions.
(4) DEFINITIONS.—For purposes of this sec-
tion, the terms ‘‘insured depository institution’’ and
‘‘appropriate Federal banking agency’’ have the
same meanings as in section 3 of the Federal De-
posit Insurance Act.
(b) REPEAL OF PUBLICATION REQUIREMENTS.—
(1) The 5th sentence of section 5211(a) of the
Revised Statutes (12 U.S.C. 161(a)) is amended by
striking ’’; and the statement of resources and liabil-
ities in the same form in which it is made to the
Comptroller shall be published in a newspaper’’ and
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all that follows through the period and inserting a
period.
(2) Section 5211(c) of the Revised Statutes (12
U.S.C. 161(c) is amended by striking the 4th sen-
tence.
(3) Section 7(a)(1) of the Federal Deposit In-
surance Act is amended by striking the 4th sentence.
(4) The last sentence of the 6th undesignated
paragraph of section 9 of the Federal Reserve Act
(12 U.S.C. 324) is amended by striking ‘‘and shall
be published’’ and all that follows through the end
of the sentence and inserting a period.
(c) AMENDMENT RELATING TO NATIONAL BANKS.—
Section 5211(a) of the Revised Statutes (12 U.S.C.
161(a)) is amended by adding at the end the following
sentence: ‘‘Any change in the form of report of condition
made under this subsection shall be effective only once in
a particular calendar year, and only after at least 6
months from the date that notice of the change is pub-
lished in the Federal Register, except that such change
may be effective on a subsequent date or after less notice
if the Comptroller makes a specific finding that an addi-
tional change in the form or a shorter advance-notice pe-
riod is necessary because of an emergency or change in
Federal law.’’.
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(d) AMENDMENT RELATING TO STATE NONMEMBER
INSURED BANKS.—Section 7(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(a)) is amended by adding
at the end the following new paragraph:
‘‘(10) TRANSITION
PERIOD
FOR
CHANGES
IN
REPORT REQUIREMENTS.—Any change in the form
of reports of condition made under this subsection
shall be effective only once in a particular calendar
year, and only after at least 6 months from the date
that notice of the change is published in the Federal
Register, except that such a change may be effective
on a subsequent date or after less notice if the
Board of Directors makes a specific finding that an
additional change in the form or a shorter advance-
notice period is necessary because of an emergency
or change in Federal law.’’.
(e) AMENDMENT RELATING
TO STATE MEMBER
BANKS.—The 6th undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 324) is amended by
adding at the end the following sentence: ‘‘Any change in
the form of report of condition made under this subsection
shall be effective only once in a particular calendar year,
and only after at least 6 months from the date that notice
of the change is published in the Federal Register, except
that such a change may be effective on a subsequent date
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or after less notice if the Board of Governors of the Fed-
eral Reserve System makes a specific finding that an addi-
tional change in the form or a shorter advance-notice pe-
riod is necessary because of an emergency or change in
Federal law.’’.
(f) AMENDMENT RELATING TO SAVINGS ASSOCIA-
TION.—Section 5(v) of the Home Owners’ Loan Act (12
U.S.C. 1464(v) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) TRANSITION PERIOD FOR CHANGES IN RE-
PORT REQUIREMENTS.—Any change in the form of
reports of condition made under this subsection shall
be effective only once in a particular calendar year,
and only after at least 6 months from the date that
notice of the change is published in the Federal Reg-
ister, except that such a change may be effective on
a subsequent date or after less notice if the Director
makes a specific finding that an additional change in
the form or a shorter advance-notice period is nec-
essary because of an emergency or change in Fed-
eral law.’’.
(g) AMENDMENT RELATING TO CREDIT UNIONS.—
Section 202(a)(1) of the Federal Credit Union Act (12
U.S.C. 1782(a)(1)) is amended by adding at the end the
following sentence: ‘‘Any change in the form of reports
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of condition made under this subsection shall be effective
only once in a particular calendar year, and only after at
least 6 months from the date that notice of the change
is published in the Federal Register, except that such a
change may be effective on a subsequent date or after less
notice if the Board makes a specific finding that an addi-
tional change in the form or a shorter advance-notice pe-
riod is necessary because of an emergency or change in
Federal law.’’.
SEC. 305. REGULATORY REVIEW OF CAPITAL COMPLIANCE
BURDEN.
Not later than 180 days after the date of enactment
of this Act, the Federal Financial Institutions Examina-
tion Council, in consultation with insured depository insti-
tutions and other interested parties, shall—
(a) review the extent to which current compliance re-
quirements associated with risk-based capital rules have
an unnecessarily costly and burdensome effect on commu-
nity banks; and
(b) where appropriate, reduce such costs and bur-
dens.
For purposes of this section, the term ‘‘insured de-
pository institution’’ has the same meaning as in section
3 of the Federal Deposit Insurance Act.
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SEC. 306. BRANCH CLOSURES.
Section 39 of the Federal Deposit Insurance Act (12
U.S.C. 1831p) (as added by section 228 of the Federal
Deposit Insurance Corporation Improvement Act of 1991)
is amended by adding at the end the following new sub-
sections:
‘‘(d) DEFINITIONS.—For purposes of this section, the
term ‘‘branch’’ shall not include:
‘‘(1) automated teller machines;
‘‘(2) a branch acquired through merger, consoli-
dation, purchase, assumption or other method that
is located in a local market area currently served by
another branch of the acquiring institution;
‘‘(3) a branch that is closed and reopened in
another location within the same local market area
which would continue to provide banking services to
substantially all of the customers currently served by
the branch that is closed;
‘‘(4) a branch that is closed in connection
with—
‘‘(A) an emergency acquisition under—
‘‘(i) section 11(n); or
‘‘(ii) subsections (f) or (k) of section
13; or
‘‘(B) any assistance provided by the Cor-
poration under section 13(c); and
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‘‘(5) any other branch closure whose exemption
from the notice requirements of this section would
not produce a result inconsistent with the purposes
of this section. The appropriate Federal banking
agency shall, by regulation, determine the cir-
cumstances under which such exemptions will be
granted.
‘‘(e) EFFECTIVE DATE.—The amendments made by
this section shall become effective on the date of enact-
ment of the Federal Deposit Insurance Corporation Im-
provement Act of 1991.’’.
SEC. 307. BANK SECRECY ACT AMENDMENTS.
(a) STAFF COMMENTARIES.—Title 31 of the United
States Code is amended to add the following new section
5327:
‘‘SEC. 5327. STAFF COMMENTARIES.
‘‘The Secretary of the Treasury shall review all regu-
lations promulgated under this title on an annual basis
and seek comment from the public pursuant to this review.
The Secretary shall publish all written rulings interpreting
this title, as well as a staff commentary to the regulations
issued under this title. This commentary shall be issued
on an annual basis.’’.
(b) LOG REQUIREMENTS.—Section 5325(a)(1) of
title 31 of the United States Code is amended—
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(1) by striking subparagraphs (A) and (B); and
(2) by inserting the following new paragraph
(1):
‘‘(1) the individual has a transaction account
with such financial institution and the financial in-
stitution verifies that fact through a signature card
or other information maintained by such institution
in connection with the account of such individual.’’.
(c) EXEMPTION PROCESS.—Section 5318(a)(5) of
title 31 of the United States Code is amended—
(1) by inserting ‘‘or exception’’ after ‘‘an appro-
priate exemption’’; and
(2) by inserting ‘‘only after receiving comments
from the entities covered by this chapter. The Sec-
retary must take into account the effect that
changes to the exemption or exception process will
have on the cost and efficiency of the reporting proc-
ess.’’ after the words ‘‘under this subchapter’’.
(d) CUSTOMER FILINGS.—Section 5313(a) of title 31
of the United States Code is amended by striking ‘‘, the
institution and any other participant in the transaction
the Secretary may prescribe shall file a report’’ and insert-
ing ‘‘the person who participates in the transaction shall
file a report’’.
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(e) INFLATION ADJUSTMENTS ON CTR AMOUNTS.—
Section 5313(a) of title 31 of the United States Code is
amended by inserting after the second sentence the follow-
ing new sentence: ‘‘The Secretary must review the report-
ing requirements mentioned above by September 1 of each
calendar year to determine if the reporting amount pre-
scribed by the Secretary should be adjusted to account for
inflation, cost effectiveness of the requirement or the use-
fulness for law enforcement purposes. The Secretary must
submit a written report to the Congress each year disclos-
ing how the reporting threshold decision was reached. The
report must include an analysis of how the change will
affect domestic financial institutions.’’.
SEC. 308. CLARIFYING AMENDMENTS.
(a) DATA COLLECTIONS.—Section 7(a)(8) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(a)(8)) (as
amended by Section 141(c) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991) is amended
to add at the end the following new sentence: ‘‘In prescrib-
ing reporting and other requirements pursuant to this
paragraph, the Corporation shall minimize the regulatory
burden imposed upon insured depository institutions.’’;
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SEC. 309. LIMITING POTENTIAL LIABILITY ON FOREIGN AC-
COUNTS.
(a) AMENDMENT TO THE FEDERAL RESERVE ACT.—
Section 25 of the Federal Reserve Act (12 U.S.C. 601 et
seq.) is amended by adding at the end the following:
‘‘(11) LIMITATIONS ON LIABILITY.—A member
bank shall not be required to repay any deposit
made at a foreign branch of the bank if the branch
cannot repay the deposit due to—
‘‘(i) an act of war, insurrection or civil
strife, or
‘‘(ii) an action by a foreign government or
instrumentality (whether de jure or de facto) in
the country in which the branch is located,
unless the member bank has expressly agreed in
writing to repay the deposit under those cir-
cumstances. The Board is authorized to prescribe
such regulations as it deems necessary to implement
this paragraph.’’.
(b) AMENDMENTS TO THE FEDERAL DEPOSIT IN-
SURANCE ACT.—
(1) Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by adding at the
end the following:
‘‘(
) SOVEREIGN RISK.—(1) Section 25(11) of the
Federal Reserve Act shall apply to every nonmember in-
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sured bank in the same manner and to the same extent
as if the nonmember insured bank were a member bank.’’.
(2) CONFORMING AMENDMENT.—Subparagraph
(A) of Section 3(1)(5) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(l)(5)) is amended to read
as follows:
‘‘(A) any obligation of a depository institu-
tion which is carried on the books and records
of an office of such bank or savings association
located outside of any State unless—
‘‘(i) such obligation would be a deposit
if it were carried on the books and records
of the depository institution, and payable
at, an office located in any State; and
‘‘(ii) the contract evidencing the obli-
gation provides by express terms, and not
by implication, for payment at an office of
the depository institution located in any
State; and’’.
(c) EXISTING CLAIMS NOT AFFECTED.—The amend-
ments made by this section shall not be construed to affect
any claim arising from events (described in section 25(11)
of the Federal Reserve Act, as added by subsection (a))
that occurred before the date of enactment of this section.
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SEC. 310. REPEAL OUT-DATED STATUTORY PROVISION.
Section 5204 of the Revised Statutes (12 U.S.C. 56)
is amended—
(1) in the second sentence, by striking ‘‘deduct-
ing therefrom its losses and bad debts’’ and insert-
ing ‘‘subject to other provisions of law’’; and
(2) by striking the third sentence.
SUBTITLE B—HOLDING COMPANY EFFICIENCIES
SEC. 321. EXPEDITED PROCEDURES FOR FORMING A BANK
HOLDING COMPANY.
Section 3(a) of the Bank Holding Company Act of
1956 (12 U.S.C. 1842(a)) is amended—
(1) by striking out ‘‘or (B)’’ and inserting in
lieu thereof ‘‘(B),’’; and
(2) by inserting before the period at the end of
the second sentence the following: ‘‘, or (C) with 30
days prior notification to the Board, the acquisition
by a company of control of a bank in a reorganiza-
tion in which a person or group of persons exchange
their shares of the bank for shares of a newly
formed bank holding company and receive, after the
reorganization, substantially the same proportional
share interest in the holding company as they held
in the bank except for changes in shareholders’ in-
terests resulting from the exercise of dissenting
shareholders’ rights under State or Federal law if,
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immediately following the acquisition, the bank hold-
ing company meets the capital and other financial
standards prescribed by the Board by regulation for
such a bank holding company and the holding com-
pany does not engage in any activities other than
those of banking or managing and controlling banks.
In promulgating regulations pursuant to this sub-
section, the Board shall not require more capital for
the subsidiary bank immediately following the reor-
ganization than is required for a similarly sized bank
that is not a subsidiary of a bank holding com-
pany.’’.
SEC. 322. EXEMPTION OF CERTAIN HOLDING COMPANY
FORMATIONS FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933.
Section 4 of the Securities Act of 1933 (15 U.S.C.
77d) is amended by adding at the end thereof the follow-
ing new paragraph:
‘‘(7) transactions involving offers or sales of eq-
uity securities, in connection with the acquisition of
a bank by a company under section 3(a) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1842(A)),
if the acquisition occurs solely as part of a reorga-
nization in which a person or group of persons ex-
change their shares of a bank for shares of a newly
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formed bank holding company and receive, after that
reorganization, substantially the same proportional
share interests in the bank holding company as they
held in the bank, except for changes in shareholders’
interests resulting from the exercise of dissenting
shareholders’ rights under State or Federal law.’’.
SEC. 323. EXPEDITED PROCEDURES FOR BANK HOLDING
COMPANIES TO SEEK APPROVAL TO ENGAGE
IN NONBANKING ACTIVITIES.
Paragraph (8) of section 4(c) for the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(c)) is amended—
(1) by redesignating clauses (i) and (ii) of sub-
paragraphs (C), (D), and (E) as subclauses (I) and
(II), respectively;
(2) by redesignating subparagraphs (A) through
(G), and any cross references thereto as clauses (i)
through (vii), respectively; and
(3) by striking out all that precedes ‘‘purposes
of this subsection it is not’’ and inserting in lieu
thereof the following:
‘‘(8)(A) ACTIVITIES
CLOSELY
RELATED
TO
BANKING.—In accordance with the limitations and
requirements contained in subparagraphs (B) and
(C) of this paragraph, shares of any company whose
activities the Board has determined (by order or reg-
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ulation) to be so closely related to banking or man-
aging or controlling banks as to be a proper incident
thereto.
‘‘(B) NOTICE REQUIREMENTS.
‘‘(i) No bank holding company shall
engage in any activity or acquire the
shares of a company pursuant to this para-
graph, either de novo or by an acquisition
in whole or in part of a going concern, un-
less the Board has been given sixty days
prior written notice of that proposal and,
within that period, the Board has not is-
sued an order—
‘‘(I) disapproved the proposal, or
‘‘(II) extending the time period
in accordance with clause (iii) below.
‘‘(ii)(I) An acquisition may be made
prior to the expiration of the disapproval
period if the Board issues a written state-
ment of its intent not to disapprove the
proposal.
‘‘(II) The Board shall publish in
the Federal Register notice of receipt
of a notice under this paragraph in-
volving insurance or any other non-
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banking activity not previously deter-
mined by the Board (by order or reg-
ulation) to be closely related to bank-
ing, and provide a reasonable period
for public comment. The Board shall
issue an order involving any such no-
tice prior to the commencement of the
proposed insurance or new activity.
‘‘(III) No notice under this para-
graph is required for a bank holding
company to establish de novo an office
to engage in any activity previously
authorized for that bank holding com-
pany under this paragraph or to
change location of an office engaged
in that activity.
‘‘(iii) The notice submitted to the
Board shall contain such information as
the Board shall prescribe by regulation or
by specific request in connection with a
particular notice, except that the Board
may require only such information as may
be relevant to the nature and scope of the
proposed activity and to the Board’s eval-
uation of the notice under the criteria
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specified in clause (iv). If the Board re-
quires additional relevant information be-
yond that provided in the notice, the Board
may by order extend the time period pro-
vided in clause (i) of this subparagraph
until it has received that information, and
the activity that is the subject of the notice
may be commenced within sixty days of the
date of that receipt unless the Board is-
sues a disapproval order as provided in
clause (i). Such an extension order is
reviewable under section 9 of this Act.
‘‘(iv) In determining whether to dis-
approve a notice under this paragraph, the
Board shall consider whether the perform-
ance of the activity described in the notice
by a bank holding company or subsidiary
thereof can reasonably be expected to
produce benefits to the public, such as
greater convenience, increased competition,
or gains in efficiency, that outweigh pos-
sible adverse effects, such as undue con-
centration of resources, decreased or unfair
competition, conflicts or interests, or un-
sound banking practices. In orders and
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regulations under this paragraph, the
Board may differentiate between activities
commenced de novo and activities com-
menced by the acquisition, in whole or in
part, of a going concern.
‘‘(c) The Board shall by order set forth the reasons
for any disapproval or determination not to disapprove a
notice under this paragraph.
‘‘(C) INSURANCE ACTIVITIES NOT CLOSELY
RELATED TO BANKING.—For’’.
SEC. 324. REDUCTION OF POST-APPROVAL WAITING PE-
RIOD FOR BANK HOLDING COMPANY ACQUI-
SITIONS.
Section 11(b)(1) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1849(b)(1)) is amended by adding be-
fore the period at the end of the fourth sentence thereof
the following: ‘‘or if no adverse comment has been received
regarding section 4(c)(8(C) or section 4(j) of this act, such
shorter period of time as may be prescribed by the Board
with the concurrence of the Attorney General, but in no
event less than five days.’’.
SEC. 325. REDUCTION OF POST-APPROVAL WAITING PE-
RIOD FOR BANK MERGERS.
Section 18(c)(6) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(c)(6)) is amended by inserting before
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the period at the end of the last sentence thereof the fol-
lowing: ‘‘or such shorter period of time as may be pre-
scribed by the agency with the concurrence of the Attorney
General, but in no event less than five days.’’.
TITLE IV—CONSUMER INCONVENIENCE,
PAPERWORK, AND COST; OTHER NON-
SUPERVISORY REFORMS
Subtitle A—Consumer Benefits and Lending
Process Improvements
SEC. 
401. 
STREAMLINED 
LENDING 
PROCESS 
FOR
CONSUMER BENEFIT.
(a) FEDERAL RESERVE STUDY.—Within 12 months
of enactment of this Act, the Board of Governors of the
Federal Reserve System, in consultation with the Depart-
ment of Housing and Urban Development, shall conduct
a study and report to Congress on ways to streamline the
credit-granting process.
(b) FOCUS.—In carrying out subsection (a), the
Board shall—
(1) identify ways to streamline the home mort-
gage, small business and consumer lending processes
so as to—
(A) reduce consumer inconvenience, cost
and time delays; and
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(B) minimize cost and burdens on insured
depository institutions and credit unions;
(2) take such regulatory action, as appropriate,
to meet the objectives of paragraph (1); and
(3) provide Congress with legislative rec-
ommendations on changes necessary to carry out the
purposes of this section.
(c) COMMENT.—In carrying out the objectives of this
section, the Board shall solicit comments from other Fed-
eral banking agencies, consumer groups, insured deposi-
tory institutions, credit unions, and other interested par-
ties.
(d) DEFINITION.—For purposes of this section, the
term ‘‘insured depository institution’’ has the same mean-
ing as in section 3 of the Federal Deposit Insurance Act.
SEC. 402. EXEMPTION FOR CERTAIN BORROWERS.
Section 104 of the Truth in Lending Act (15 U.S.C.
1603) is amended by adding at the end the following:
‘‘(7) Credit transactions involving consumers
who earn more than $200,000 annually or have net
assets in excess of $1,000,000 at the time of such
transaction.’’.
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SEC. 403. MODIFICATION OF WAIVER OF RIGHT OF RESCIS-
SION.
Section 125(d) of the Truth in Lending Act (15
U.S.C. 1635(d)) is amended by striking ‘‘, if it finds that
such action is necessary in order to permit homeowners
to meet bona fide personal financial emergencies,’’.
SEC. 404. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE
RATE MORTGAGES
(a) Section 127A(a)(2)(G) of the Truth in Lending
Act (15 U.S.C. 1637a(a)(2)(G)) is amended by inserting
before the semicolon ‘‘, or a statement that the monthly
payment may increase or decrease significantly due to in-
creases in the annual percentage rate’’.
(b) In section 128(a) of the Truth in Lending Act
(15 U.S.C. 1638(a), insert at the end the following new
paragraph (14):
‘‘(14) In any variable rate residential mortgage
transaction, at the creditors’ option, a statement
that the monthly payment may increase or decrease
substantially, or an historical example illustrating
the effects of interest rate changes implemented ac-
cording to the loan program.’’.
SEC. 405. EXEMPTION FOR BUSINESS ACCOUNTS.
Section 274 of the Truth in Savings Act (15 U.S.C.
4313) is amended by striking subsection (1) and inserting
the following in its place:
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‘‘(1) The term ‘account’ means any account in-
tended for use by and generally used by consumers
primarily for personal, family, or household purposes
by a depository institution into which a customer de-
posits funds, including demand accounts, time ac-
counts, negotiable order of withdrawal accounts, and
share draft accounts.’’.
SEC. 406. ELIMINATION OF DUPLICATE DISCLOSURES FOR
HOME EQUITY LOANS.
Section 4 of the Real Estate Settlement Procedures
Act (12 U.S.C. 2603) is amended by inserting in sub-
section (a) after the first sentence: ‘‘except that for feder-
ally related mortgage loans secured by a subordinate lien
on residential property subject to section 127A(a) of the
Truth in Lending Act (15 U.S.C. 1637a(a)), the disclo-
sures of section 127A(a) of the Truth in Lending Act (15
U.S.C. 1637a(a)) may be used in place of the standard
real estate settlement form.’’
Subtitle B—Other Non-Supervisory Reforms
Part 1—Expedited Funds Availability and Electronic
Transfers
SEC. 411. AVAILABILITY SCHEDULES.
(a) TREASURY CHECKS.—Section 603(a)(2)(A) of
the Expedited Funds Availability Act (12 U.S.C.
4002(a)(2)(A)) is amended—
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(1) by redesignating clauses (i) and (ii) as
clauses (ii) and (iii), respectively; and
(2) by inserting before clause (ii), as redesig-
nated, the following:
‘‘(i) is deposited in a receiving depository
institution which is staffed by individuals em-
ployed by such institutions;’’
(b) ON-US ITEMS.—Section 603(a)(2)(E) of the Ex-
pedited Availability Act (12 U.S.C. 4002(a)(2)(E)) is
amended by inserting ‘‘is staffed by individuals employed
by such institutions’’ after ‘‘branch of a depository institu-
tion’’.
(c) LOCAL CHECKS.—Section 603(b)(1) of the Expe-
dited Funds Availability Act (12 U.S.C. 4002(b)(1)) is
amended by striking ‘‘one business day’’ and inserting
‘‘two business days’’.
SEC. 412. DEFINITION OF A NEW ACCOUNT.
Section 604(a) of Expedited Funds Availability Act
(12 U.S.C. 4003(a)) is amended by striking ‘‘thirty-day
period’’ and inserting ‘‘ninety-day period’’.
SEC. 413. JURISDICTION.
Section 611(f) of the Expedited Funds Availability
Act (12 U.S.C. 4010(f)) is amended in the first sentence
by inserting ‘‘or other entities participating in the pay-
ments system, including States and political subdivisions
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thereof on which checks are drawn.’’ after ‘‘depository in-
stitutions’’.
SEC. 414. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.
Section 909(a)(1) of Electronic Fund Transfer Act
(15 U.S.C. 1693g(a)(1)) is amended by inserting ‘‘(or in
cases where the cardholder has substantially contributed
to the unauthorized use, including writing on or keeping
with the card or other means of access a personal identi-
fication or other security code, $500)’’ after ‘‘$50’’.
Part 2—Amendments to the Truth In Lending Act
SEC. 421. LIABILITY FOR UNAUTHORIZED USE OF CREDIT
CARDS.
Section 133(a) of the Truth in Lending Act (15
U.S.C. 1643(a)) is amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
(2) by inserting after paragraph (1) the follow-
ing:
‘‘(2)(A) Notwithstanding paragraph (1), a card-
holder shall be liable for the unauthorized use of a
credit card if—
‘‘(i) the liability is in excess of $50; and
‘‘(ii) the cardholder fails to notify the card
issuer of any unauthorized transaction which
appears on the statement of the cardholder’s
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account in connection with an extension of
consumer credit within 60 days of the receipt of
such statement.
‘‘(B) The liability described in subparagraph
(A) shall not apply if the cardholder demonstrates
that the failure to timely notify the card issuer of
the unauthorized use was due to extenuating cir-
cumstances such as extended travel or hospitaliza-
tion, and notice was provided at the earliest possible
time thereafter.
‘‘(C) the liability described in subparagraph (A)
shall only apply where the card issuer has provided
prior notice to the cardholder of such liability.’’.
Part 3—Homeownership Amendments
SEC. 431. HOME MORTGAGE DISCLOSURE ACT EXEMPTION.
The Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2801 et. seq.) is amended in section 309 (12
U.S.C. 2808) by inserting at the end the following new
sentence: ‘‘The amount of total assets in the preceding
sentence shall be adjusted yearly on January 1 by the an-
nual percentage change in the Consumer Price Index re-
ported for the previous June 1.’’.
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SEC. 432. HOMEOWNERSHIP DEBT COUNSELING NOTIFICA-
TION.
Section 106(c)(5) of the Housing and Urban Devel-
opment Act of 1968 (12 U.S.C. 1701x(c)(5)) is amended:
(a) by inserting at the end the following new subpara-
graph (F):
‘‘(F) AFFECT ON FORECLOSURE PROCEED-
INGS.— Failure of a creditor to comply with the
requirements of this subsection shall in no way
affect foreclosure proceedings under state law.’’;
and
(b) in subparagraph (B),—
(1) by inserting ‘‘(i)’’ before ‘‘The notification
required’’ and by renumbering clauses (i) and (ii) as
subclauses (I) and (II), respectively;
(2) by inserting the following new clause (ii)—
‘‘(ii) Creditors shall not be required to
provide the notification required under
subparagraph (A) more than once annu-
ally.’’.
SEC. 433. ELIMINATION OF DUPLICATIVE DATA COLLEC-
TION.
Effective 6 months after the date of enactment of this
Act, no Federal banking agency shall require any institu-
tion for which it is the appropriate Federal banking agen-
cy (as defined in section 3(q) of the Federal Deposit In-
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surance Act) to prepare, file, or maintain any form for
the purpose of collection, analysis, or maintenance of ap-
propriate data to further the purposes of, or to fulfill the
requirements of, the Fair Housing Act, other than a form
for data collection, analysis, or maintenance required
under the Home Mortgage Disclosure Act of 1975.
Part 4—Amendments to the Real Estate Settlements
Procedures Act
SEC. 411. CLARIFY DISCLOSURE REQUIREMENTS.
Section 6 of the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2605) is amended—
(a) in subsection (a)(1)(B)—
(1) by inserting ‘‘at the choice of the per-
son making a federally related mortgage loan—
(i)’’ after ‘‘(B)’’;
(2) by redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively, and by
striking ‘‘and’’ at the end of newly redesignated
subclause (II) and inserting ‘‘or’’; and
(3) by inserting the following new clause
(ii):
‘‘(ii) a statement that the person mak-
ing the loan has previously assigned, sold,
or transferred the servicing of federally re-
lated mortgage loans; and’’.
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(b) in subsection (a)(2), by inserting at the end
the following new sentence: ‘‘Notwithstanding the
previous sentences of this paragraph, the Secretary
shall also permit any person originating the loan, at
the choice of such person, to provide instead of the
percentage estimates required to be disclosed under
this paragraph a statement that the servicing may
be assigned, sold or transferred during the twelve-
month period beginning upon origination.’’.
SEC. 442. EXEMPTION OF BUSINESS LOANS.
The Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2601) is amended:
(1) by redesignating sections 4 (as amended by
Section 406 of this Act) through 19 as sections 5
through 20, respectively; and
(2) by inserting the following new section 4:
‘‘SEC. 4. EXEMPTED TRANSACTIONS.—This title
does not apply to the following:
‘‘(1) Credit transactions involving extensions of
credit primarily for business, commercial, or agricul-
tural purposes, or to government or governmental
agencies or instrumentalities, or to organizations; or
‘‘(2) Credit transactions to finance or refinance
agricultural property (such as farms, ranches, aqua-
culture, or vineyards) constituting 25 or more acres
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regardless of whether the loan in part involves a lien
including residential property.’’.
TITLE V—COMMUNITY INVESTMENT
SEC. 501. COMMUNITY REINVESTMENT ACT AMENDMENTS.
(a) COMPLIANCE BURDENS.—Section 804 of the
Community Reinvestment Act of 1977 (12 U.S.C. 2903)
is amended—
(1) in paragraph (1), by striking ‘‘; and’’ and
inserting ‘‘;’’;
(2) in paragraph (2), by striking ‘‘.’’ and insert-
ing ‘‘; and’’; and
(3) by adding at the end the following new
paragraph (3):
‘‘(3) minimize the regulatory paperwork bur-
dens and costs associated with compliance with this
Act, giving appropriate consideration and recogni-
tion to such factors as the nature and scope of the
institution’s business, its location and area of serv-
ice, and such other factors as may be appropriate.’’.
(b) SAFE HARBOR.—The Community Reinvestment
Act of 1977 (12 U.S.C. 2901 et seq.) is hereby amended
by adding the following new section:
‘‘SEC. 809. SAFE HARBOR.—Notwithstanding section
804(2), an application for a deposit facility by—
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‘‘(5) the term ‘‘special purpose banks’’ means a
bank that does not generally accept retail deposits,
such as credit card banks and trust banks.’’; and
(2) in Section 804 (12 U.S.C. 2903) (as
amended by sections 501(a) and 501(c) of this
Act)—
(A) by inserting ‘‘(a)’’ before ‘‘In connec-
tion with’’;
(B) by inserting at the end the following
new subsection (b):
‘‘(b) In conducting assessments pursuant to sub-
section (a) at special purpose banks, each appropriate
Federal financial supervisory agency shall take into con-
sideration the nature of business such banks are involved
in and develop standards under which such banks may be
deemed to have complied with the requirements of this Act
which are consistent with the specific nature of such busi-
nesses.’’.
(e) STATE EXAMS.—The Community Reinvestment
Act of 1977 (12 U.S.C. 2901 et seq.) is hereby amended
by adding after section 809 (as added by section 501(b))
the following new section:
‘‘SEC. 810. STATE EXAMS.—The appropriate Federal
financial supervisory agency may accept examinations con-
ducted by State supervisory agencies pursuant to com-
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parable State community reinvestment laws in order to
satisfy the requirements of this Act.’’.
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