the establishment of a new branch by another depos-
itory institution, the chartering of a new depository
institution, or the establishment of a community de-
velopment credit union, following the closing of the
branch.
‘‘(3) NO AFFECT ON CLOSING.—No action by
the appropriate Federal banking agency under para-
graph (2) shall affect the authority of an interstate
bank to close a branch (including the timing of such
closing) if the requirements of subsections (a) and
(b) have been met by such bank with respect to the
branch being closed.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) INTERSTATE
BANK
DEFINED.—The
term ‘interstate bank’ means a bank which
maintains branches in more than 1 State.
‘‘(B) 
LOW- 
OR
MODERATE-INCOME
AREA.—The term ‘low- or moderate-income
area’ means a census tract for which the me-
dian family income is—
‘‘(i) less than 80 percent of the me-
dian family income for the metropolitan
statistical area (as designated by the Di-
rector of the Office of Management and
Budget) in which the census tract is lo-
cated; or
‘‘(ii) in the case of a census tract
which is not located in a metropolitan sta-
tistical area, less than 80 percent of the
median family income for the State in
which the census tract is located, as deter-
mined without taking into account family
income in metropolitan statistical areas in
such State.’’.
SEC. 107. PROHIBITION AGAINST DEPOSIT PRODUCTION
OFFICES.
(a) REGULATIONS.—Before the end of the 120-day
period beginning on the date of the enactment of the
Interstate Banking Efficiency Act of 1994, each appro-
priate Federal banking agency shall prescribe regulations
which prohibit any person from using any authority to en-
gage in interstate branching pursuant to this title, or any
amendment made by this title to any other provision of
law, primarily for the purpose of deposit production.
(b) GUIDELINES FOR MEETING CREDIT NEEDS.—
Regulations issued under subsection (a) shall include
guidelines to ensure that each interstate branch meets the
credit needs of the community and market area in which
the branch operates.
(c) LIMITATION ON OUT-OF-STATE LOANS.—
(1) LIMITATION.—Regulations issued under
subsection (a) shall require that if the percentage of
outstanding loans made by an interstate branch to
borrowers located in the host State of, or market
area served by, the branch is less than half the aver-
age of such percentage for all Federal depository in-
stitutions and State depository institutions having
their principal place of operations in the host State
or that market area—
(A) the appropriate Federal banking agen-
cy for the branch shall review the loan portfolio
of the branch and determine whether the
branch is reasonably meeting the credit needs
of the community and market area in which the
branch operates; and
(B) if the agency determines that the
branch is not reasonably meeting those needs—
(i) the branch shall be closed, and
(ii) the person which established the
branch may not open a new branch in that
State unless the person provides reasonable
assurances to the satisfaction of the appro-
priate Federal banking agency that the
new branch will reasonably meet the credit
needs of the community and market area
in which the new branch will operate.
(2) CONSIDERATIONS.—In making a determina-
tion under paragraph (1)(A) regarding an interstate
branch, the appropriate Federal banking agency
shall consider—
(A) whether the branch was acquired as
part of the purchase of a failed or failing depos-
itory institution;
(B) whether the branch has a higher con-
centration of commercial and credit card lend-
ing; and
(C) the ratings received by the branch in
evaluations under the Community Reinvestment
Act of 1977.
(d) APPLICATION.—This section shall not apply to
any interstate branch acquired before January 1, 1992,
as part of any consolidation or merger of depository insti-
tutions.
(e) DEFINITIONS.—For the purposes of this section,
the following definitions shall apply:
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ has the same meaning as in section 3 of the
Federal Deposit Insurance Act.
(2) BRANCH.—The term ‘‘branch’’ means any
office, agency, or other place of business located in
any State at which deposits are received, checks
paid, or money lent.
(3) FEDERAL
DEPOSITORY
INSTITUTION
AND
STATE
DEPOSITORY
INSTITUTION.—The 
terms
‘‘Federal depository institution’’ and ‘‘State deposi-
tory institution’’ have the same meanings as in sec-
tion 3 of the Federal Deposit Insurance Act.
(4) HOST STATE DEFINED.—The term ‘‘host
State’’ means the State in which a bank establishes
or maintains a branch, other than—
(A) in the case of a insured State bank,
the State in which the bank is chartered;
(B) in the case of a national bank, the
State in which the main office of the bank is lo-
cated; and
(C) in the case of a bank holding company,
the State in which the total deposits of all bank
subsidiaries of such company is the greatest.
(5) INTERSTATE
BRANCH.—The term ‘‘inter-
state branch’’ means a branch established pursuant
to the authority referred to in subsection (a).
(6) PRINCIPAL
PLACE
OF
OPERATIONS.—The
term ‘‘principal place of operations’’ means the State
in which the total deposits of all bank subsidiaries
of a person are greatest.
(7) STATE DEFINED.—The term ‘‘State’’ has
the same meaning as in section 3 of the Federal De-
posit Insurance Act.
SEC. 108. FEDERAL RESERVE BOARD STUDY ON BANK
FEES.
(a) IN GENERAL.—Section 1002 of the Financial In-
stitutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1811 note) is amended to read as follows:
‘‘SEC. 1002. SURVEY OF BANK FEES AND SERVICES.
‘‘(a) ANNUAL SURVEY REQUIRED.—The Board of
Governors of the Federal Reserve System shall obtain a
sample, which is representative by geographic location and
size of the institution, of—
‘‘(1) certain retail banking services provided by
insured depository institutions; and
‘‘(2) the fees, if any, which are imposed by such
institutions for providing such service, including fees
imposed for not sufficient funds, deposit items re-
turned, and automated teller machines.
‘‘(b) ANNUAL REPORT TO CONGRESS REQUIRED.—
‘‘(1) PREPARATION.—The Board of Governors
of the Federal Reserve System shall prepare a report
of the results of each survey conducted pursuant to
subsection (a).
‘‘(2) CONTENTS OF THE REPORT.—Each report
prepared pursuant to paragraph (1) shall include—
‘‘(A) a description of any discernible trend,
in the Nation as a whole and in each State, in
the cost and availability of retail banking serv-
ices which delineates differences on the basis of
size of the institution and engagement in
multistate activity; and
‘‘(B) a description of the correlation, if
any, among the following factors:
‘‘(i) An increase or decrease in the
amount of any deposit insurance premium
assessed by the Federal Deposit Insurance
Corporation against insured depository in-
stitutions.
‘‘(ii) An increase or decrease in the
amount of the fees imposed by such insti-
tutions for providing retail banking serv-
ices.
‘‘(iii) A decrease in the availability of
such services.
‘‘(3) SUBMISSION TO CONGRESS.—The Board
of Governors of the Federal Reserve System shall
submit each annual report to the Congress not later
than June 1 of each calendar year.’’.
(b) SUNSET.—The requirements of subsection (a)
shall not apply after the end of the 7-year period begin-
ning on the date of enactment of this Act.
SEC. 109. RESTATEMENT OF EXISTING LAW.
No provision of this title and no amendment made
by this title to any other provision of law shall be con-
strued as affecting in any way the right of any State, or
any political subdivision of any State, to impose or main-
tain a nondiscriminatory franchise tax or other non-
property tax instead of a franchise tax in accordance with
section 3124 of title 31, United States Code.
TITLE II—CRA EVALUATIONS
SEC. 201. STATE-BY-STATE CRA EVALUATIONS OF DEPOSI-
TORY 
INSTITUTIONS 
WITH 
INTERSTATE
BRANCHES.
Section 807 of the Community Reinvestment Act of
1977 (12 U.S.C. 2906) is amended by adding at the end
the following new subsection:
‘‘(d) 
INSTITUTIONS
WITH
INTERSTATE
BRANCHES.—
‘‘(1) STATE-BY-STATE
EVALUATION.—In the
case of a regulated financial institution which main-
tains 1 or more domestic branches located outside
the State in which the institution’s principal place of
business is located (hereafter in this subsection re-
ferred to as the ‘home State’), the appropriate Fed-
eral financial supervisory agency shall prepare—
‘‘(A) a written evaluation of the entire in-
stitution’s record of performance under this
Act, as required by subsections (a), (b), and (c)
of this section; and
‘‘(B) for each State in which the institu-
tion maintains 1 or more domestic branches
(including the institution’s home State), a sepa-
rate written evaluation of the institution’s
record of performance within such State under
this Act, as required by subparagraphs (A) and
(B) of subsection (b)(1) of this section.
‘‘(2) CONTENT
OF
STATE
LEVEL
EVALUA-
TION.—A written evaluation prepared pursuant to
paragraph (1)(B) of this subsection shall report the
information required by such paragraph separately
for each metropolitan area (as defined by the appro-
priate Federal financial supervisory agency) in which
the regulated financial institution maintains 1 or
more domestic branch offices and separately for the
nonmetropolitan portion of the State if the institu-
tion maintains 1 or more domestic branch offices in
such nonmetropolitan area.’’.
Passed the House of Representatives March 22,
1994.
Attest:
Clerk.
HR 3841 EH——2
HR 3841 EH——3
HR 3841 EH——4
HR 3841 EH——5