•HR 3505 RH2 
ance Act on the acquisition and retention of 
any corporate debt security not of invest-
ment grade.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 5(c)(3)(A) of the Home Owners’ Loan Act (12 U.S.C. 
1464(c)(3)(A)) is amended to read as follows: 
‘‘(A) [Repealed].’’. 
SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL 
SAVINGS ASSOCIATIONS WITH NONDEPOSI-
TORY INSTITUTION AFFILIATES. 
Section 5(d)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1464(d)(3)) is amended— 
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) MERGERS AND CONSOLIDATIONS WITH 
NONDEPOSITORY INSTITUTION AFFILIATES.— 
‘‘(i) IN GENERAL.—Upon the approval 
of the Director, a Federal savings associa-
tion may merge with any nondepository in-
stitution affiliate of the savings association. 
‘‘(ii) RULE
OF
CONSTRUCTION.—No 
provision of clause (i) shall be construed 
as—
•HR 3505 RH2 
‘‘(I) affecting the applicability of 
section 18(c) of the Federal Deposit In-
surance Act; or 
‘‘(II) granting a Federal savings 
association any power or any author-
ity to engage in any activity that is 
not authorized for a Federal savings 
association under any other provision 
of this Act or any other provision of 
law.’’. 
SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE-
QUIREMENT FOR SAVINGS ASSOCIATION SUB-
SIDIARIES OF SAVINGS AND LOAN HOLDING 
COMPANIES. 
Section 10(f) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(f)) is amended to read as follows: 
‘‘(f) DECLARATION
OF
DIVIDEND.—The Director 
may— 
‘‘(1) require a savings association that is a sub-
sidiary of a savings and loan holding company to 
give prior notice to the Director of the intent of the 
savings association to pay a dividend on its guar-
anty, permanent, or other nonwithdrawable stock; 
and
•HR 3505 RH2 
‘‘(2) establish conditions on the payment of divi-
dends by such a savings association.’’. 
SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR 
TRUST OWNERSHIP OF SAVINGS ASSOCIA-
TIONS. 
(a) IN GENERAL.—Section 10(a)(1)(C) of the Home 
Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is amend-
ed— 
(1) by striking ‘‘trust,’’ and inserting ‘‘business 
trust,’’; and 
(2) by inserting ‘‘or any other trust unless by its 
terms it must terminate within 25 years or not later 
than 21 years and 10 months after the death of indi-
viduals living on the effective date of the trust,’’ after 
‘‘or similar organization,’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 10(a)(3) of the Home Owners’ Loan Act (12 U.S.C. 
1467a(a)(3)) is amended— 
(1) by striking ‘‘does not include—’’ and all that 
follows through ‘‘any company by virtue’’ where such 
term appears in subparagraph (A) and inserting 
‘‘does not include any company by virtue’’; 
(2) by striking ‘‘; and’’ at the end of subpara-
graph (A) and inserting a period; and 
(3) by striking subparagraph (B).
•HR 3505 RH2 
SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING 
PURCHASED MORTGAGE SERVICING RIGHTS. 
Section 5(t) of the Home Owners’ Loan Act (12 U.S.C. 
1464(t)) is amended— 
(1) by striking paragraph (4) and inserting the 
following new paragraph: 
‘‘(4) [Repealed].’’; and 
(2) in paragraph (9)(A), by striking ‘‘intangible 
assets, plus’’ and all that follows through the period 
at the end and inserting ‘‘intangible assets.’’. 
SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL SAV-
INGS ASSOCIATIONS TO INVEST IN SMALL 
BUSINESS INVESTMENT COMPANIES. 
Subparagraph (D) of section 5(c)(4) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)(4)) is amended to read 
as follows: 
‘‘(D) SMALL BUSINESS INVESTMENT COMPA-
NIES.—Any Federal savings association may in-
vest in 1 or more small business investment com-
panies, or in any entity established to invest 
solely in small business investment companies 
formed under the Small Business Investment Act 
of 1958, except that the total amount of invest-
ments under this subparagraph may not at any 
time exceed the amount equal to 5 percent of 
capital and surplus of the savings association.’’.
•HR 3505 RH2 
SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN 
AUTO LOANS. 
(a) IN GENERAL.—Section 5(c)(1) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)(1)) is amended by adding 
at the end the following new subparagraph: 
‘‘(V) AUTO LOANS.—Loans and leases for 
motor vehicles acquired for personal, family, or 
household purposes.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING
TO QUALIFIED THRIFT INVESTMENTS.—Section 
10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12 U.S.C. 
1467a(m)(4)(C)(ii)) is amended by adding at the end the 
following new subclause: 
‘‘(VIII) Loans and leases for 
motor vehicles acquired for personal, 
family, or household purposes.’’. 
SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS. 
Section 15(h) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o(h)) is amended by adding at the end the 
following new paragraph: 
‘‘(4) SELLING AND OFFERING OF DEPOSIT PROD-
UCTS.—No law, rule, regulation, or order, or other 
administrative action of any State or political sub-
division thereof shall directly or indirectly require 
any individual who is an agent of 1 Federal savings 
association (as such term is defined in section 2(5) of
•HR 3505 RH2 
the Home Owners’ Loan Act (12 U.S.C. 1462(5)) in 
selling or offering deposit (as such term is defined in 
section 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813(l)) products issued by such association to 
qualify or register as a broker, dealer, associated per-
son of a broker, or associated person of a dealer, or 
to qualify or register in any other similar status or 
capacity, if the individual does not— 
‘‘(A) accept deposits or make withdrawals 
on behalf of any customer of the association; 
‘‘(B) offer or sell a deposit product as an 
agent for another entity that is not subject to su-
pervision and examination by a Federal banking 
agency (as defined in section 3(z) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(z)), the 
National Credit Union Administration, or any 
officer, agency, or other entity of any State 
which has primary regulatory authority over 
State banks, State savings associations, or State 
credit unions; 
‘‘(C) offer or sell a deposit product that is 
not an insured deposit (as defined in section 
3(m) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(m)));
•HR 3505 RH2 
‘‘(D) offer or sell a deposit product which 
contains a feature that makes it callable at the 
option of such Federal savings association; or 
‘‘(E) create a secondary market with respect 
to a deposit product or otherwise add enhance-
ments or features to such product independent of 
those offered by the association.’’. 
SEC. 210. FUNERAL- AND CEMETERY-RELATED FIDUCIARY 
SERVICES. 
Section 5(n) of the Home Owners’ Loan Act (12 U.S.C. 
1464(n)) is amended by adding at the end the following 
new paragraph: 
‘‘(11) FUNERAL- AND CEMETERY-RELATED FIDU-
CIARY SERVICES.— 
‘‘(A) IN GENERAL.—A funeral director or 
cemetery operator, when acting in such capacity, 
(or any other person in connection with a con-
tract or other agreement with a funeral director 
or cemetery operator) may engage any Federal 
savings association, regardless of where the asso-
ciation is located, to act in any fiduciary capac-
ity in which the savings association has the right 
to act in accordance with this section, including 
holding funds deposited in trust or escrow by the 
funeral director or cemetery operator (or by such
•HR 3505 RH2 
other party), and the savings association may 
act in such fiduciary capacity on behalf of the 
funeral director or cemetery operator (or such 
other person). 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) CEMETERY.—The term ‘cemetery’ 
means any land or structure used, or in-
tended to be used, for the interment of 
human remains in any form. 
‘‘(ii) CEMETERY OPERATOR.—The term 
‘cemetery operator’ means any person who 
contracts or accepts payment for merchan-
dise, endowment, or perpetual care services 
in connection with a cemetery. 
‘‘(iii) FUNERAL DIRECTOR.—The term 
‘funeral director’ means any person who 
contracts or accepts payment to provide or 
arrange— 
‘‘(I) services for the final disposi-
tion of human remains; or 
‘‘(II) funeral services, property, or 
merchandise (including cemetery serv-
ices, property, or merchandise).’’.
•HR 3505 RH2 
SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER REQUIRE-
MENT 
WITH 
RESPECT 
TO 
OUT-OF-STATE 
BRANCHES. 
Section 5(r)(1) of the Home Owners’ Loan Act (12 
U.S.C. 1464(r)(1)) is amended by striking the last sentence. 
SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL 
LOANS. 
(a) ELIMINATION OF LENDING LIMIT ON SMALL BUSI-
NESS LOANS.—Section 5(c)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(c)(1)) is amended by inserting after 
subparagraph (V) (as added by section 208 of this title) 
the following new subparagraph: 
‘‘(W) 
SMALL
BUSINESS
LOANS.—Small 
business loans, as defined in regulations which 
the Director shall prescribe.’’. 
(b) INCREASE IN LENDING LIMIT ON OTHER BUSINESS 
LOANS.—Section 5(c)(2)(A) of the Home Owners’ Loan Act 
(12 U.S.C. 1464(c)(2)(A)) is amended by striking ‘‘, and 
amounts in excess of 10 percent’’ and all that follows 
through ‘‘by the Director’’. 
SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 
ASSOCIATIONS FOR FEDERAL COURT JURIS-
DICTION. 
Section 5 of the Home Owners’ Loan Act (12 U.S.C. 
1464) is amended by adding at the end the following new 
subsection:
•HR 3505 RH2 
‘‘(x) HOME STATE CITIZENSHIP.—In determining 
whether a Federal court has diversity jurisdiction over a 
case in which a Federal savings association is a party, the 
Federal savings association shall be considered to be a cit-
izen only of the States in which such savings association 
has its home office and its principal place of business (if 
the principal place of business is in a different State than 
the home office).’’. 
SEC. 214. INCREASE IN LIMITS ON COMMERCIAL REAL ES-
TATE LOANS. 
Section 5(c)(2)(B)(i) of the Home Owners’ Loan Act 
(12 U.S.C. 1464(c)(2)(B)(i)) is amended by striking ‘‘400 
percent’’ and inserting ‘‘500 percent’’. 
SEC. 215. REPEAL OF ONE LIMIT ON LOANS TO ONE BOR-
ROWER. 
Subparagraph (A) of section 5(u)(2) of the Home 
Owners’ Loan Act (12 U.S.C. 1464(u)(2)(A)) is amended— 
(1) by striking subclause (I) of clause (ii); 
(2) by redesignating subclauses (II), (III), (IV), 
and (V) of clause (ii) as subclauses (I), (II), (III), 
and (IV), respectively; 
(3) in clause (i)— 
(A) by striking ‘‘for any’’ and inserting 
‘‘For any’’; and
•HR 3505 RH2 
(B) by striking ‘‘; or’’ and inserting a pe-
riod; and 
(4) in clause (ii), by striking ‘‘to develop domes-
tic’’ and inserting ‘‘To develop domestic’’. 
SEC. 216. SAVINGS ASSOCIATION CREDIT CARD BANKS. 
Section 10(a)(1)(A) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(a)(1)(A)) is amended by inserting ‘‘and such 
term does not include an institution described in section 
2(c)(2)(F) of the Bank Holding Company Act of 1956 for 
purposes of subsections (a)(1)(E), (c)(3)(B)(i), (c)(9)(C)(i), 
and (e)(3)’’ before the period at the end. 
SEC. 217. INTERSTATE ACQUISITIONS BY S&L HOLDING 
COMPANIES. 
Section 10(e)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(e)(3)) is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as subparagraphs (B), (C), and (D), respec-
tively; and 
(2) by inserting before subparagraph (B) (as so 
redesignated) the following new subparagraph: 
‘‘(A) such acquisition would be permissible 
under section 3(d) of the Bank Holding Com-
pany Act of 1956 if the savings and loan holding 
company were a bank holding company and any 
savings association to be acquired were a bank;’’.
•HR 3505 RH2 
SEC. 218. BUSINESS ORGANIZATION FLEXIBILITY FOR FED-
ERAL SAVINGS ASSOCIATIONS. 
(a) IN GENERAL.—Section 5 of the Home Owners’ 
Loan Act (12 U.S.C. 1464) is amended by inserting after 
subsection (x) (as added by section 213) following new sub-
section: 
‘‘(y) ALTERNATIVE BUSINESS ORGANIZATION.— 
‘‘(1) IN GENERAL.—The Director may prescribe 
regulations that— 
‘‘(A) permit a Federal savings association 
to be organized other than as a corporation; and 
‘‘(B) provide requirements for the organiza-
tional characteristics of a Federal savings asso-
ciation organized and operating other than as a 
corporation, consistent with the safety and 
soundness of the Federal savings association. 
‘‘(2) EQUAL TREATMENT.—Except as otherwise 
provided in regulations prescribed under subsection 
(1), a Federal savings association that is operating 
other than as a corporation shall have the same rights 
and privileges and shall be subject to the same duties, 
restrictions, penalties, liabilities, conditions, and lim-
itations as a Federal savings association that is orga-
nized as a corporation.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
•HR 3505 RH2 
(1) Section 5(a)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(a)(1)) is amended by striking 
‘‘organization, incorporation,’’ and inserting ‘‘organi-
zation (as a corporation or other form of business or-
ganization provided under regulations prescribed by 
the Director under subsection (x)),’’. 
(2) The last sentence of section 5(i)(1) of the 
Home Owners’ Loan Act (12 U.S.C. 1464(i)(1)) is 
amended by striking ‘‘incorporated’’ and inserting 
‘‘organized’’. 
(3) Section 5(o)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(a)(1)) is amended by striking 
‘‘organization, incorporation,’’ and inserting ‘‘organi-
zation (as a corporation or other form of business or-
ganization provided under regulations prescribed by 
the Director under subsection (x)),’’. 
TITLE III—CREDIT UNION 
PROVISIONS 
SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR-
IZED TO BECOME MEMBERS OF A FEDERAL 
HOME LOAN BANK. 
(a) IN GENERAL.—Section 4(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 
at the end the following new paragraph:
•HR 3505 RH2 
‘‘(5) CERTAIN
PRIVATELY
INSURED
CREDIT 
UNIONS.— 
‘‘(A) IN GENERAL.—A credit union which 
has been determined, in accordance with section 
43(e)(1) of the Federal Deposit Insurance Act 
and subject to the requirements of subparagraph 
(B), to meet all eligibility requirements for Fed-
eral deposit insurance shall be treated as an in-
sured depository institution for purposes of de-
termining the eligibility of such credit union for 
membership in a Federal home loan bank under 
paragraphs (1), (2), and (3). 
‘‘(B) CERTIFICATION BY APPROPRIATE SU-
PERVISOR.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph and subject to clause (ii), a 
credit union which lacks Federal deposit in-
surance and which has applied for member-
ship in a Federal home loan bank may be 
treated as meeting all the eligibility require-
ments for Federal deposit insurance only if 
the appropriate supervisor of the State in 
which the credit union is chartered has de-
termined that the credit union meets all the 
eligibility requirements for Federal deposit
•HR 3505 RH2 
insurance as of the date of the application 
for membership. 
‘‘(ii) 
CERTIFICATION
DEEMED 
VALID.—If, in the case of any credit union 
to which clause (i) applies, the appropriate 
supervisor of the State in which such credit 
union is chartered fails to make a deter-
mination pursuant to such clause by the 
end of the 6-month period beginning on the 
date of the application, the credit union 
shall be deemed to have met the require-
ments of clause (i). 
‘‘(C) SECURITY
INTERESTS
OF
FEDERAL 
HOME
LOAN
BANK
NOT
AVOIDABLE.—Notwith-
standing any provision of State law authorizing 
a conservator or liquidating agent of a credit 
union to repudiate contracts, no such provision 
shall apply with respect to— 
‘‘(i) any extension of credit from any 
Federal home loan bank to any credit union 
which is a member of any such bank pursu-
ant to this paragraph; or 
‘‘(ii) any security interest in the assets 
of such credit union securing any such ex-
tension of credit.’’.
•HR 3505 RH2 
(b) COPIES OF AUDITS OF PRIVATE INSURERS OF 
CERTAIN DEPOSITORY INSTITUTIONS REQUIRED
TO BE 
PROVIDED TO SUPERVISORY AGENCIES.—Section 43(a)(2) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1831t(a)(2)) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (A)(i); 
(2) by striking the period at the end of clause 
(ii) of subparagraph (A) and inserting a semicolon; 
(3) by inserting the following new clauses at the 
end of subparagraph (A): 
‘‘(iii) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the private 
insurer, the National Credit Union Admin-
istration, not later than 7 days after that 
audit is completed; and 
‘‘(iv) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the private 
insurer which are members of a Federal 
home loan bank, the Federal Housing Fi-
nance Board, not later than 7 days after 
that audit is completed.’’; and
•HR 3505 RH2 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(C) CONSULTATION.—The appropriate su-
pervisory agency of each State in which a pri-
vate deposit insurer insures deposits in an insti-
tution described in subsection (f)(2)(A) which— 
‘‘(i) lacks Federal deposit insurance; 
and 
‘‘(ii) has become a member of a Fed-
eral home loan bank, 
shall provide the National Credit Union Admin-
istration, upon request, with the results of any 
examination and reports related thereto con-
cerning the private deposit insurer to which such 
agency may have in its possession.’’. 
SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR 
CREDIT UNIONS. 
(a) IN GENERAL.—Section 124 of the Federal Credit 
Union Act (12 U.S.C. 1770) is amended— 
(1) by striking ‘‘Upon application by any credit 
union’’ and inserting ‘‘Notwithstanding any other 
provision of law, upon application by any credit 
union’’; 
(2) by inserting ‘‘on lands reserved for the use of, 
and under the exclusive or concurrent jurisdiction of,
•HR 3505 RH2 
the United States or’’ after ‘‘officer or agency of the 
United States charged with the allotment of space’’; 
(3) by inserting ‘‘lease land or’’ after ‘‘such offi-
cer or agency may in his or its discretion’’; and 
(4) by inserting ‘‘or the facility built on the lease 
land’’ after ‘‘credit union to be served by the allot-
ment of space’’. 
(b) CLERICAL AMENDMENT.—The heading for section 
124 is amended by inserting ‘‘OR FEDERAL LAND’’ after 
‘‘BUILDINGS’’. 
SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED-
IT UNIONS. 
Section 107 of the Federal Credit Union Act (12 
U.S.C. 1757) is amended— 
(1) in the matter preceding paragraph (1) by 
striking ‘‘A Federal credit union’’ and inserting ‘‘(a) 
IN GENERAL.—Any Federal credit union’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) ADDITIONAL INVESTMENT AUTHORITY.— 
‘‘(1) IN GENERAL.—In addition to any invest-
ments otherwise authorized, a Federal credit union 
may purchase and hold for its own account such in-
vestment securities of investment grade as the Board 
may authorize by regulation, subject to such limita-
•HR 3505 RH2 
tions and restrictions as the Board may prescribe in 
the regulations. 
‘‘(2) PERCENTAGE LIMITATIONS.— 
‘‘(A) SINGLE OBLIGOR.—In no event may 
the total amount of investment securities of any 
single obligor or maker held by a Federal credit 
union for the credit union’s own account exceed 
at any time an amount equal to 10 percent of 
the net worth of the credit union. 
‘‘(B) AGGREGATE
INVESTMENTS.—In no 
event may the aggregate amount of investment 
securities held by a Federal credit union for the 
credit union’s own account exceed at any time 
an amount equal to 10 percent of the assets of 
the credit union. 
‘‘(3) INVESTMENT SECURITY DEFINED.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘investment security’ means 
marketable obligations evidencing the indebted-
ness of any person in the form of bonds, notes, 
or debentures and other instruments commonly 
referred to as investment securities. 
‘‘(B) FURTHER
DEFINITION
BY
BOARD.— 
The Board may further define the term ‘invest-
ment security’.
•HR 3505 RH2 
‘‘(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
•HR 3505 RH2 
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’’.
•HR 3505 RH2 
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 international 
and domestic electronic fund transfers); and 
‘‘(B) to cash checks and money orders and 
receive international and domestic electronic 
fund transfers for persons in the field of member-
ship 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
•HR 3505 RH2 
(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.’’.