I
104TH CONGRESS
1ST SESSION
H. R. 1858
To reduce paperwork and additional regulatory burdens for depository
institutions.
IN THE HOUSE OF REPRESENTATIVES
JUNE 15, 1995
Mr. LEACH introduced the following bill; which was referred to the Committee
on Banking and Financial Services
A BILL
To reduce paperwork and additional regulatory burdens for
depository institutions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Financial Institutions Regulatory Relief Act of 1995’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—REDUCTIONS IN GOVERNMENT OVERREGULATION
Subtitle A—The Home Mortgage Process
Sec. 101. Transfer of RESPA regulatory authority; elimination of redundant
regulators.
Sec. 102. Truth in Lending Act and RESPA comparability.
Sec. 103. Increased regulatory flexibility under the Truth in Lending Act.
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Sec. 104. Reductions in RESPA regulatory burdens; clarifying amendments.
Sec. 105. Alternative disclosures for adjustable rate mortgages.
Sec. 106. Treatment of certain charges.
Sec. 107. Exemption from rescission.
Sec. 108. Tolerance; basis of disclosures.
Sec. 109. Limitation on liability.
Sec. 110. Applicability.
Sec. 111. Limitation on rescission period.
Sec. 112. Calculation of actual damages.
Sec. 113. Assignee liability.
Sec. 114. Recovery of fees.
Sec. 115. Homeownership debt counseling notification.
Sec. 116. Home Mortgage Disclosure Act.
Subtitle B—Community Reinvestment Act Amendments
Sec. 121. Expression of congressional intent.
Sec. 122. Community Reinvestment Act exemption.
Sec. 123. Self-certification of CRA compliance.
Sec. 124. Community input and conclusive rating.
Sec. 125. Special purpose banks.
Sec. 126. Increased incentives to lending to low- and moderate-income commu-
nities.
Sec. 127. Prohibition on additional reporting under CRA.
Sec. 128. Technical amendment.
Sec. 129. Duplicative reporting.
Subtitle C—Consumer Banking Reforms
Sec. 131. Truth in Savings.
Sec. 132. Unauthorized electronic fund transfers.
Sec. 133. Liability for unauthorized use of credit cards.
Sec. 134. Information sharing.
Sec. 135. Electronic Funds Transfer Act clarification.
Subtitle D—Equal Credit Opportunity Act Amendments
Sec. 141. Short title.
Sec. 142. Findings and purpose.
Sec. 143. Equal Credit Opportunity Act amendments.
Sec. 144. Fair Credit Reporting Act amendments.
Sec. 145. Incentives for self-testing.
Sec. 146. Credit scoring systems.
Sec. 147. Effective date.
Subtitle E—Consumer Leasing Act Amendments
Sec. 151. Short title.
Sec. 152. Congressional findings and declaration of purpose.
Sec. 153. Regulations.
Sec. 154. Segregated leasing disclosures.
Sec. 155. Consumer lease advertising.
Subtitle F—Federal Home Loan Bank Amendments
Sec. 161. Application for membership in the FHLB system.
Sec. 162. Federal Home Loan Bank external auditors.
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TITLE II—STREAMLINING GOVERNMENT REGULATIONS
Subtitle A—Regulatory Approval Issues
Sec. 201. Streamlined nonbanking acquisitions by well capitalized and well
managed banking organizations.
Sec. 202. Streamlined bank acquisitions by well capitalized and well managed
banking organizations.
Sec. 203. Eliminate bank merger act filing and approval requirements for in-
sured depository institutions already controlled by the same
holding company.
Sec. 204. Eliminate redundant approval requirement for Oakar transactions.
Sec. 205. Eliminate duplicative requirements imposed on bank holding compa-
nies under the Home Owners’ Loan Act.
Sec. 206. Eliminate requirement that approval be obtained for divestitures.
Sec. 207. Eliminate unnecessary branch applications.
Sec. 208. Eliminate branch applications/requirements for ATMs and similar fa-
cilities.
Sec. 209. Eliminate requirement for approval of investments in bank premises
for well capitalized and well managed banks.
Sec. 210. Eliminate unnecessary filing for officer and director appointments.
Sec. 211. Streamlining process for determining new nonbanking activities.
Subtitle B—Streamlining of Government Regulations; Miscellaneous Provisions
Sec. 221. Eliminate the per-branch capital requirement for national banks and
state member banks.
Sec. 222. Branch closures.
Sec. 223. Amendments to the Depository Institutions Management Interlocks
Act.
Sec. 224. Consolidation of appraisal subcommittee.
Sec. 225. Eliminate unnecessary and duplicative recordkeeping and reporting
requirements relating to loans to executive officers and permit
participation in employee benefit plans.
Sec. 226. Expanded regulatory discretion for small bank examinations.
Sec. 227. Cost reimbursement.
Sec. 228. Identification of nonbank financial institution customers.
Sec. 229. Paperwork reduction review.
Sec. 230. Repeal of unnecessary reporting requirements.
Sec. 231. Daily confirmations for hold-in-custody repurchase transactions.
Sec. 232. Required regulatory review of regulations.
Sec. 233. Country risk requirements.
Sec. 234. Audit costs.
Sec. 235. Due process protections.
Sec. 236. Culpability standards for outside directors.
Sec. 237. Rules on deposit taking.
Sec. 238. Transition period for new regulations.
Sec. 239. Foreign bank applications.
Sec. 240. Duplicate examination of foreign banks.
Sec. 241. Second mortgages.
Sec. 242. OCC authority.
TITLE III—LENDER LIABILITY
Sec. 301. Lender liability.
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TITLE I—REDUCTIONS IN GOV-
ERNMENT OVERREGULATION
Subtitle A—The Home Mortgage
Process
SEC. 101. TRANSFER OF RESPA REGULATORY AUTHORITY;
ELIMINATION OF REDUNDANT REGULATORS.
(a) TRANSFER OF AUTHORITY.—The Real Estate
Settlement Procedures Act (12 U.S.C. 2601 et seq.) is
amended—
(1) by striking ‘‘Secretary’’ each time it ap-
pears and inserting ‘‘Board’’, except in sections
3(1)(B)(ii), 3(6) and section 14 (12 U.S.C.
2602(1)(B)(ii), 2602(6) and 2612, respectively); and
(2) in section 3 by adding at the end thereof a
new paragraph (9) as follows:
‘‘(9) the term ‘‘Board’’ means the Board of
Governors of the Federal Reserve System.’’.
(b) ELIMINATION OF REDUNDANT REGULATORS.—
The Real Estate Settlement Procedures Act (12 U.S.C.
2601 et seq.) is amended—
(1) in section 19 by striking subsection (a) and
inserting in lieu thereof the following:
‘‘(a) The Board shall prescribe regulations to carry
out the purpose of this title. These regulations may con-
tain such classifications, differentiations, or other provi-
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sions, and may provide for such adjustments and excep-
tions for any class of transactions, as in the judgment of
the Board are necessary or proper to effectuate the pur-
poses of this title, to prevent circumvention or evasion
thereof, or to facilitate compliance therewith. Such regula-
tions shall minimize the burdens and cost imposed upon
creditors and shall ensure that costs, burdens, and com-
plexities to consumers are reduced.’’; and
(2) by inserting after section 19 of the Real Es-
tate Settlement Procedures Act (12 U.S.C. 2617)
the following:
‘‘SEC. 20. ADMINISTRATIVE ENFORCEMENT.
‘‘(a) Compliance with the requirements imposed
under this subtitle shall be enforced under—
‘‘(1) section 8 of the Federal Deposit Insurance
Act, in the case of—
‘‘(A) national banks, and Federal branches
and Federal agencies of foreign banks, by the
Office of the Comptroller of the Currency;
‘‘(B) member banks of the Federal Reserve
System (other than national banks), branches
and agencies of foreign banks (other than Fed-
eral branches, Federal agencies, and insured
State branches of foreign banks), commercial
lending companies owned or controlled by for-
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eign banks, and organizations operating under
section 25 or 25A of the Federal Reserve Act,
by the Board; and
‘‘(C) banks insured by the Federal Deposit
Insurance Corporation (other than members of
the Federal Reserve System) and insured State
branches of foreign banks, by the Board of Di-
rectors of the Federal Deposit Insurance Cor-
poration;
‘‘(2) section 8 of the Federal Deposit Insurance
Act, by the Director of the Office of Thrift Super-
vision, in the case of a savings association the depos-
its of which are insured by the Federal Deposit In-
surance Corporation.
‘‘(3) the Federal Credit Union Act, by the Ad-
ministrator of the National Credit Union Adminis-
tration with respect to any Federal credit union.
‘‘(4) The Packers and Stockyards Act of 1921
(except as provided in section 406 of that Act), by
the Secretary of Agriculture with respect to any ac-
tivities subject to that Act.
‘‘(5) the Farm Credit Act of 1971, by the Farm
Credit Administration with respect to any Federal
land bank, Federal land bank association, Federal
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(d) Section 19 of the Real Estate Procedures Act (12
U.S.C. 2617) (as amended by Section 101 of this Act)
is amended by inserting the following new subsection (b)
and redesignating the remaining subsections accordingly:
‘‘(b) The Board shall by regulation eliminate, modify,
or simplify any disclosure required by this title, including
the content and timing of the disclosure, where such action
will make disclosures and timing of disclosures required
by this title uniform with other laws relating to the disclo-
sure of information in connection with credit transactions,
including the Truth in Lending Act. No additional disclo-
sure requirements may be added as a result of this sub-
section.’’.
SEC. 103. INCREASED REGULATORY FLEXIBILITY UNDER
THE TRUTH IN LENDING ACT.
(a) REGULATORY FLEXIBILITY.—Section 104 of the
Truth in Lending Act (15 U.S.C. 1603) is amended by
adding at the end the following new paragraph:
‘‘(7) Transactions for which the Board, by reg-
ulation, determines that coverage under the Act is
not needed to carry out the purposes of the Act.’’.
(b) EXEMPTIVE AUTHORITY.—Section 105 of the
Truth in Lending Act (15 U.S.C. 1604) is amended by
redesignating subsections (b) through (d) as (c) through
(e) and inserting a new subsection (b) as follows:
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‘‘(b) EXEMPTIVE AUTHORITY.—The Board shall ex-
empt from all or parts of this title any class of trans-
actions for which, in the Board’s judgment, coverage
under all or part of this title does not provide a measur-
able benefit to consumers in the form of useful informa-
tion or protection. In determining which classes of trans-
actions to exempt in whole or in part, the Board shall con-
sider, among other factors, the following:
‘‘(1) The amount of the loan or closing costs
and whether the disclosures, right of rescission, and
other provisions are necessary, particularly for small
loans.
‘‘(2) Whether the requirements of this title
complicate, hinder, or make more expensive the cred-
it process for the class of transactions.
‘‘(3) The status of the borrower, including, the
borrowers’ related financial arrangements, the finan-
cial sophistication of the borrower relative to the
type of transaction, and the importance of the credit
and related supporting property to the borrower.’’.
SEC. 104. REDUCTIONS IN RESPA REGULATORY BURDENS;
CLARIFYING AMENDMENTS.
(a) UNNECESSARY DISCLOSURE.—Section 6(a) of the
Real Estate Settlement Procedures Act (12 U.S.C. 2605),
is amended to read as follows:
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‘‘(a) DISCLOSURE TO APPLICANT RELATING TO AS-
SIGNMENT, SALE, OR TRANSFER OF LOAN SERVICING.—
‘‘(1) IN GENERAL.—Each person who makes a
federally related mortgage loan shall disclose to each
person who applies for any such loan, at the time of
application for the loan, whether the servicing of any
such loan may be assigned, sold, or transferred to
any other person at any time while such loan is out-
standing.
‘‘(2) SIGNATURE OF APPLICANT.—Any disclo-
sure of the information required under paragraph
(1) shall not be effective for purposes of this section
unless the disclosure is accompanied by a written
statement, in such form as the Secretary shall de-
velop before the expiration of the 180-day period be-
ginning on the date of enactment, that the applicant
has read and understood the disclosure and that is
evidenced by the signature of the applicant at the
place where such statement appears in the applica-
tion.’’.
(b) EFFECTIVE DATE.—This subsection shall become
effective 180 days after the date of enactment.
(c) SECOND MORTGAGES.—Section 3(1)(A) of the
Real Estate Settlement Procedures Act (12 U.S.C.
2602(1)(A)), is amended by striking ‘‘or subordinate’’.
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(d) CONSISTENCY OF RESPA AND TRUTH IN LEND-
ING ACT EXEMPTION OF BUSINESS LOANS.—Section 7 of
the Real Estate Settlement Procedures Act (12 U.S.C.
2606) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘This Act’’; and
‘‘(2) inserting a new subsection (b) as follows:
‘‘(b) INTERPRETATION.—In issuing regulations pur-
suant to Section 19(a) of this Act, the Board shall ensure
that with regard to subsection (a), the exemption for busi-
ness credit includes all ‘‘business credit’’ exempted from
the Truth in Lending Act (15 U.S.C. 1601) as that term
has been interpreted by the Board of Governors of the
Federal Reserve System in Section 226.3(a) of Regulation
Z (12 C.F.R. 226.3(a)) as in effect on the date of enact-
ment.’’.
SEC. 105. 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’’.
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(b) Section 128(a) of the Truth in Lending Act (15
U.S.C. 1638(a)) is amended by inserting 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 a historical example illustrating the
effects of interest rate changes implemented accord-
ing to the loan program.’’.
SEC. 106. CERTAIN CHARGES.
(a) THIRD PARTY FEES.—Section 106(a) of the
Truth in Lending Act (15 U.S.C. 1605(a)) is amended
by adding after the second sentence the following new sen-
tence: ‘‘The finance charge shall not include fees and
amounts imposed by third parties not affiliated with the
creditor (including settlement agents, attorneys, and es-
crow and title companies) if the creditor does not expressly
require the imposition of the charges and does not retain
the charges.’’.
(b) TAXES
ON SECURITY INSTRUMENTS
OR EVI-
DENCES
OF
INDEBTEDNESS.—Section 106(d) of the
Truth in Lending Act (15 U.S.C. 1605(d)) is amended
by adding at the end the following new paragraph:
‘‘(3) Any tax levied on security instruments or
on documents evidencing indebtedness if the pay-
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ment of such taxes is a precondition for the instru-
ment securing the evidence of indebtedness.’’.
(c) PREPARATION OF LOAN DOCUMENTS.—Section
106(e)(2) of the Truth in Lending Act (15 U.S.C.
1605(e)(2)) is amended to read as follows:
‘‘(2) Fees for preparation of loan-related docu-
ments and attending or conducting settlement.’’.
(d) FEES RELATING TO PEST INFESTATIONS, IN-
SPECTIONS, AND HAZARDS.—Section 106(e)(5) of the
Truth in Lending Act (15 U.S.C. 1605(e)(5)) is amended
by inserting ‘‘, including fees related to pest infestations,
premises and structural inspections, and flood hazards’’
before the period.
SEC. 107. EXEMPTIONS FROM RESCISSION.
(a) CERTAIN REFINANCINGS.—Section 125(e) of the
Truth in Lending Act (15 U.S.C. 1635(e)) is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting instead ‘‘; or’’; and
(3) by adding at the end the following new
paragraph:
‘‘(5) a transaction, other than a mortgage re-
ferred to in section 103(aa), which—
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‘‘(A) is secured by a first lien, in any
amount; and
‘‘(B) constitutes a refinancing or consoli-
dation of an existing extension of credit.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 125(e)(2) of the Truth in Lending Act (15 U.S.C.
1635(e)(2)) is amended by inserting ‘‘, other than a trans-
action described in subsection (e)(5),’’ after ‘‘a refinancing
or consolidation (with no new advances).’’.
SEC. 108. TOLERANCES; BASIS OF DISCLOSURES.
(a) TOLERANCES FOR ACCURACY.—Section 106 of
the Truth in Lending Act (15 U.S.C. 1605) is amended
by adding at the end the following new subsection:
‘‘(f) TOLERANCE
FOR ACCURACY.—In connection
with credit transactions not under an open end credit plan
that are secured by real property or a dwelling, the disclo-
sure of the finance charge and other disclosures affected
by any finance charge shall be treated as being accurate
for purposes of this title if the amount disclosed as the
finance charge does not vary from the actual finance
charge by more than an amount equal to one-half of the
numerical tolerance corresponding to, and generated by,
the tolerance provided by section 107(c) with respect to
the annual percentage rate.’’.
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(b) BASIS OF DISCLOSURE FOR PER DIEM INTER-
EST.—Section 121(c) of the Truth in Lending Act (15
U.S.C. 1631(c)) is amended by adding at the end the fol-
lowing new sentence: ‘‘In the case of any consumer credit
transaction a portion of the interest on which is deter-
mined on a per diem basis and is to be collected upon
the consummation of such transaction, any disclosure with
respect to such portion of interest shall be deemed to be
accurate for purposes of this title if the disclosure is based
on information actually known to the creditor at the time
that the disclosure documents are being prepared for the
consummation of the transaction.’’.
SEC. 109. LIMITATION ON LIABILITY.
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.
‘‘(a) LIMITATIONS ON LIABILITY FOR DISCLOSURES
RELATING
TO CERTAIN FEES
AND CHARGES OTHER
THAN FINANCE CHARGES.—
‘‘(1) IN
GENERAL.—For transactions con-
summated before the date of the enactment of the
Financial Institutions Regulatory Relief Act of
1995, a creditor or any assignee of a creditor shall
have no civil, administrative, or criminal liability
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under this title for, and a consumer shall have no
extended rescission rights under section 125(f) with
respect to, the creditor’s treatment, for disclosure
purposes, of—
‘‘(A) taxes described in section 106(d)(3);
‘‘(B) fees and amounts described in section
106(e) (2) and (5) and third party fees and
amounts described in section 106(a); and
‘‘(C) delivery charges imposed by a credi-
tor.
‘‘(2) EXCEPTIONS.—Subsection (a) shall not
apply to—
‘‘(A) any individual action or counterclaim
brought under this title—
‘‘(i) which was filed before October 1,
1994; and
‘‘(ii) the pleadings in which (as filed
before such date) allege improper disclo-
sure of charges described in paragraph (1),
(2), or (3) of subsection (a);
‘‘(B) any class action brought under this
title—
‘‘(i) for which a class was certified be-
fore October 1, 1994; and
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‘‘(ii) the pleadings in which (as filed
before such date) allege improper disclo-
sure of charges described in paragraph (1),
(2), or (3) of subsection (a);
‘‘(C) the named individual plaintiffs in any
class action brought under this title—
‘‘(i) which was filed before October 1,
1994; and
‘‘(ii) the pleadings in which (as filed
before such date) allege improper disclo-
sure of charges described in paragraph (1),
(2), or (3) of subsection (a); or
‘‘(D) any consumer credit transaction with
respect to which a timely notice of rescission
was sent to the creditor before October 1, 1994.
‘‘(b) EXEMPTION FROM LIABILITY
FOR FINANCE
CHARGE DISCLOSURES WITHIN TOLERANCE LIMITS.—
‘‘(1) IN
GENERAL.—In the case of any
consumer credit transaction subject to this title, in-
cluding a transaction consummated before the date
of the enactment of the Financial Institutions Regu-
latory Relief Act of 1995, no creditor or assignee
with respect to such transaction shall have any civil,
administrative, or criminal liability under this title
for, and no consumer shall have extended rescission
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rights under section 125 by reason of, any disclosure
relating to the finance charge imposed with respect
to such transaction if the amount or percentage ac-
tually disclosed—
‘‘(A) may be treated as accurate pursuant
to section 106(f), or
‘‘(B) is greater than the amount or per-
centage required to be disclosed under this title.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply to—
‘‘(A) any individual action or counterclaim
brought under this title which was filed before
October 1, 1994;
‘‘(B) any class action brought under this
title for which a class was certified before Octo-
ber 1, 1994;
‘‘(C) the named individual plaintiffs in any
class action brought under this title which was
filed before October 1, 1994; or
‘‘(D) any consumer credit transaction with
respect to which a timely notice of rescission
was sent to the creditor before October 1,
1994.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 2 of the Truth in Lending Act is amended
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by inserting after the item relating to section 138 the fol-
lowing new item:
‘‘Sec. 139. Certain limitations on liability.’’.
SEC. 110. APPLICABILITY.
Except as otherwise provided in section 109, the
amendments made by sections 106, 107, 108, 109, 110,
111, 112, 113 shall apply to all consumer credit trans-
actions consummated on or after the date of enactment
of this Act, except that the amendments made by sub-
sections (a) and (b) of section 107 shall apply to all exten-
sions of credit with respect to which rescission rights have
not been asserted as of January 1, 1995.
SEC. 111. LIMITATION ON RESCISSION PERIOD.
Section 125(f) of the Truth in Lending Act (15
U.S.C. 1635(f)) is amended by adding at the end the fol-
lowing sentences: ‘‘The expiration of the right of rescission
pursuant to this subsection shall be absolute and no
consumer may assert rescission, affirmatively or as a de-
fense, in any action in any State or Federal court after
the earlier of the end of the 3-year period beginning on
the date of the consummation of the transaction or the
sale of the property securing the loan or other extension
of credit, except as otherwise provided in the preceding
sentence. This subsection shall supersede any State law
which is inconsistent with any provision of this sub-
section.’’.
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SEC. 112. CALCULATION OF ACTUAL DAMAGES.
Paragraph (1) of section 130(a) of the Truth in
Lending Act (15 U.S.C. 1640(a)) is amended to read as
follows:
‘‘(1) Any actual damages sustained by such
person as a result of the failure (to the extent the
person demonstrates reliance on the inaccurate dis-
closure which prevented the person from accepting
better credit terms actually available to the person
from another creditor) and the amount of such dam-
ages shall be the difference between the finance
charges actually paid and the finance charges that
would have been paid over the same period under
credit terms applicable with respect to credit actu-
ally available to the person from another creditor.’’.
SEC. 113. ASSIGNEE LIABILITY.
(a) VIOLATIONS APPARENT ON THE FACE OF TRANS-
ACTION DOCUMENTS.—Section 131(a) of the Truth in
Lending Act (15 U.S.C. 1641(a)) is amended to read as
follows:
‘‘(a) LIABILITY OF ASSIGNEE FOR APPARENT VIOLA-
TIONS.—
‘‘(1) IN GENERAL.—Except as otherwise specifi-
cally provided in this title, any civil action against
a creditor for a violation of this title, and any pro-
ceeding under section 108 against a creditor, with
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respect to a consumer credit transaction may be
maintained against any assignee of such creditor
only if—
‘‘(A) the violation for which such action or
proceeding is brought is apparent on the face of
the disclosure statement provided in connection
with such transaction pursuant to this title; and
‘‘(B) the assignment to the assignee was
voluntary.
‘‘(2) VIOLATION APPARENT ON THE FACE OF
THE DISCLOSURE DESCRIBED.—For the purpose of
this section, a violation is apparent on the face of
the disclosure statement if—
‘‘(A) the disclosure can be determined to
be incomplete or inaccurate from the face of the
disclosure statement; or
‘‘(B) the disclosure does not use the terms
or format required to be used by this title.’’.
(b) SERVICER NOT TREATED AS ASSIGNEE.—Section
131 of the Truth in Lending Act (15 U.S.C. 1641) is
amended by adding at the end the following new sub-
section:
‘‘(d) TREATMENT OF SERVICER.—
‘‘(1) IN GENERAL.—A servicer of a consumer
obligation arising from a consumer credit trans-
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action shall not be treated as an assignee of such ob-
ligation for purposes of this section unless the
servicer is the owner of the obligation.
‘‘(2) SERVICER NOT TREATED AS OWNER ON
BASIS OF ASSIGNMENT FOR ADMINISTRATIVE CON-
VENIENCE.—A servicer of a consumer obligation
arising from a consumer credit transaction shall not
be treated as the owner of the obligation for pur-
poses of this section on the basis of an assignment
of the obligation from the creditor or another as-
signee to the servicer solely for the administrative
convenience of the servicer in servicing the obliga-
tion.
‘‘(3) SERVICER DEFINED.—For purposes of this
subsection, the term ‘servicer’ has the same meaning
as in section 6(i)(2) of the Real Estate Settlement
Procedures Act of 1974.’’.
SEC. 114. RECOVERY OF FEES.
Section 125(b) of the Truth in Lending Act (15
U.S.C. 1635) is amended—
(a) in the first sentence, by inserting ‘‘, except
any charge for a appraisal report or credit report’’
after ‘‘other charge’’; and
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(b) in the second sentence, by striking ‘‘other-
wise’’ and inserting ‘‘as otherwise required under
this subsection’’.
SEC. 115. 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 repealed.
SEC. 116. HOME MORTGAGE DISCLOSURE ACT.
(a) Section 309 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2808) is amended—
(1) in the second sentence, by striking
‘‘$10,000,000’’ and inserting ‘‘$50,000,000’’; and,
(2) by inserting at the end the following new
sentence: ‘‘The Board may also, by regulation, ex-
empt from the provisions of this Act institutions
specified in section 303(2)(A) which have total as-
sets as of their last full fiscal year of $50,000,000
or greater where the burden of complying with this
Act on such institutions outweighs the usefulness of
the information required to be disclosed. The exemp-
tions provided under this section shall not be appli-
cable to an institution which the Board, by order,
has found a reasonable basis to believe is not fulfill-
ing its obligations to serve the housing needs of the
communities and neighborhoods in which it located.
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An institution subject to such an order shall be re-
quired to comply with the requirements of this Act
for loans made after the time that the order is is-
sued at such time and for such period as the Board
deems appropriate. The dollar amount in this section
shall be adjusted annually after December 31, 1994,
by the annual percentage increase in the Consumer
Price Index for Urban Wage Earners and Clerical
Workers published by the Bureau of Labor Statis-
tics.’’.
(b) Section 304 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2803) is amended by adding the
following new subsection (m) at the end as follows:
‘‘(m) OPPORTUNITY TO REDUCE COMPLIANCE BUR-
DEN.—
‘‘(1) A depository institution will have satisfied
the public availability requirements of subsection (a)
if such institution keeps the information required
under that subsection at its home office and provides
notice at the branch locations specified in such sub-
section that such information is available upon re-
quest from the home office of the institution. A
home office of the depository institution receiving a
request for such information pursuant to this sub-
section shall provide the information pertinent to the
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location of the branch in question within 15 days of
the receipt of the written request.
‘‘(2) In complying with paragraph (1), a deposi-
tory institution may provide the individual request-
ing such information, at the institution’s choice,
with—
‘‘(A) a paper copy of the information re-
quested; or
‘‘(B) if acceptable to the individual, the in-
formation via a form of electronic medium, such
as computer disc.’’.
Subtitle B—Community
Reinvestment Act Amendments
SEC. 121. EXPRESSION OF CONGRESSIONAL INTENT.
Subsection (b) of Section 802 of the Community Re-
investment Act of 1977 (12 U.S.C. 2901) is amended to
read as follows:
‘‘(b) It is the purpose of this title to require each ap-
propriate Federal financial supervisory agency to use its
authority, when examining financial institutions, to en-
courage such institutions to help meet the credit needs of
the local communities in which they are chartered consist-
ent with the safe and sound operation of such institutions.
When examining financial institutions, a supervisory agen-
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cy shall not impose additional burden, recordkeeping, or
reporting upon such institutions.’’.
SEC. 122. COMMUNITY REINVESTMENT ACT EXEMPTION.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 808. EXAMINATION EXEMPTION.
‘‘A regulated financial institution shall not be subject
to the examination requirements of this title or any regula-
tions issued hereunder if—
‘‘(1) the main office (and each branch of such
institution) is located in a town, political subdivision,
or other unit of general local government of a State
that has a population of not more than 30,000 per-
sons and which is not part of a metropolitan statis-
tical area; and
‘‘(2) the institution and its parent bank holding
company have aggregate assets of not more than
$100,000,000.
The dollar amount in this section shall be adjusted annu-
ally after December 31, 1994, by the annual percentage
increase in the Consumer Price Index for Urban Wage
Earners and Clerical Workers published by the Bureau of
Labor Statistics.’’.
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SEC. 123. SELF-CERTIFICATION OF CRA COMPLIANCE.
Section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2903) is amended by adding at the end
the following new subsection (c):
‘‘(c) SELF-CERTIFICATION OF CRA COMPLIANCE.—
‘‘(1) CERTIFICATION.—In lieu of being evalu-
ated under section 806A and receiving a written
evaluation under section 807, a qualifying financial
institution may choose to self-certify to the appro-
priate Federal financial supervisory agency that it is
in compliance with the goals of this Act.
‘‘(2) QUALIFYING
INSTITUTION.—A financial
institution shall be deemed a ‘qualifying institution’
for purposes of this Act if it has—
‘‘(A) no more than $250 million in assets;
‘‘(B) not been found to have engaged in a
pattern or practice of illegal discrimination
under the Fair Housing Act or the Equal Cred-
it Opportunity Act for the preceding 5-year cal-
endar period; and
‘‘(C) a current CRA rating of ‘satisfactory’
or ‘outstanding’.
The dollar amount in this paragraph shall be ad-
justed annually after December 31, 1994, by the an-
nual percentage increase in the Consumer Price
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Index for Urban Wage Earners and Clerical Work-
ers published by the Bureau of Labor Statistics.
‘‘(3) PUBLIC NOTICE.—A qualifying institution
must maintain in every branch a public notice stat-
ing that the institution has self-certified that it is
satisfactorily helping to meet the credit needs of its
community, and that it maintains:
‘‘(A) a public file at its main office which
contains a copy of its self-certification to its ap-
propriate regulator;
‘‘(B) a map delineating its community;
‘‘(C) a list of the types of credit and serv-
ices that it provides to its community;
‘‘(D) such other information that the insti-
tution believes demonstrates its record of help-
ing to meet the credit needs of its community;
and
‘‘(E) every public comment or letter to the
institution (and any response by the institution)
received within the previous two year-period
about its record of helping to meet the credit
needs of its community.
The institution shall maintain a public file at its
main office containing the contents described in this
paragraph.
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‘‘(4) RATING.—A qualifying institution shall be
deemed to have a rating of a ‘satisfactory record of
meeting community credit needs’ for the purposes of
this section and section 806A(c). Each Federal fi-
nancial supervisory agency shall publish in the Fed-
eral Register once each month a list of institutions
that have self-certified during the previous month.
Publication of the name of the institution in the
Federal Register as having self-certified shall con-
stitute disclosure of the rating of the institution to
the public under sections 806A and 807 of this Act.
‘‘(5) REGULATORY REVIEW.—During each ex-
amination for safety and soundness, a qualifying in-
stitution’s supervisory agency shall, as part of its
loan review, assess whether the institution’s basis for
its self-certification is reasonable. If the agency de-
termines that the institution’s self-certification is
unreasonable, then the agency shall schedule an ex-
amination of the institution for the purpose of as-
sessing the institution’s record of helping to meet
the credit needs of its community. If that assess-
ment results in a less than ‘satisfactory’ rating, then
the agency shall revoke the institution’s self-certifi-
cation and substitute a written evaluation as pro-
vided under section 807. An institution that has had
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its self-certification revoked shall not be permitted to
self-certify pursuant to this subsection for five years
from the year of revocation. At any time thereafter,
if the institution meets the requirements for self-cer-
tification, it may again opt to self-certify.’’.
SEC. 124. COMMUNITY INPUT AND CONCLUSIVE RATING.
(a) CONFORMING AMENDMENT.—Section 804(a) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by inserting ‘‘conducted in accordance
with section 806A,’’ after ‘‘financial institution,’’.
(b) COMMUNITY INPUT AND CONCLUSIVE RATING.—
The Community Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.) is amended by inserting after section 806
a new section 806A as follows:
‘‘SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.
‘‘(a) PUBLICATION OF EXAM SCHEDULE AND OPPOR-
TUNITY FOR COMMENT.—Each appropriate Federal finan-
cial supervisory agency shall publish in the Federal Reg-
ister, thirty days prior to the beginning of a calendar quar-
ter, a listing of institutions scheduled for examination pur-
suant to this Act during that calendar quarter, and pro-
vide opportunity for written comments from the commu-
nity on the performance, under this Act, of each institu-
tion scheduled for examination. Such comments shall be
received by the appropriate Federal financial supervisory
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agency no later than 30 days after the commencement of
such calendar quarter. The agency shall provide a copy
of such comments to the institution.
‘‘(b) EVALUATION.—The appropriate Federal finan-
cial supervisory agency shall evaluate the institution in ac-
cordance with the standards set forth in section 804 of
this Act, and shall prepare and publish a written evalua-
tion of the institution as required under section 807 of
this Act.
‘‘(c) RECONSIDERATION OF RATING.—A reconsider-
ation of an institution’s rating, referred to in section
807(b)(1)(C), may be requested within 30 days of the rat-
ing’s disclosure to the public. Any such request must be
made in writing and filed with the appropriate Federal
financial supervisory agency, and may be filed by the insti-
tution or a member of the community. Any such request
shall be based on significant issues of a substantive nature
which are relevant to the delineated community of the in-
stitution, and in the case of a request by a member of
the community shall be limited to issues previously raised
in comments submitted pursuant to subsection (a). The
appropriate Federal financial supervisory agency shall
complete any requested reconsideration within 30 days of
the filing of the request.
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‘‘(d) CONCLUSIVE RATING.—An institution’s rating
becomes ‘conclusive’ on the later of—
‘‘(1) 30 days after the rating is disclosed to the
public; or
‘‘(2) the completion of any requested reconsid-
eration by the Federal financial supervisory agency.
An institution’s rating shall be the conclusive assessment
of its record of meeting the credit needs of its community
for purposes of section 804 of this Act until the institu-
tion’s next rating, developed pursuant to an examination,
becomes conclusive. Institutions which have received a
‘satisfactory’ or ‘outstanding’ rating shall be deemed to
have satisfied section 804 of this Act. Notwithstanding
any other provision of law, nothing herein shall be con-
strued to grant a cause of action to any person.’’.
SEC. 125. SPECIAL PURPOSE BANKS.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended—
(1) in section 803 (12 U.S.C. 2902), by insert-
ing at the end thereof the following new paragraph
(5):
‘‘(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
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(2) in section 804 (12 U.S.C. 2903), by insert-
ing after subsection (c) (as added by section 122 of
this title):
‘‘(d) In conducting assessments pursuant to this sec-
tion as special purpose banks, each appropriate Federal
financial supervisory agency shall take into consideration
the nature of business such banks are involved in and de-
velop standards under which such banks may be deemed
to have complied with the requirements of this Act which
are consistent with the specific nature for such busi-
nesses.’’.
SEC. 126. INCREASED INCENTIVES TO LENDING TO LOW-
AND MODERATE-INCOME COMMUNITIES.
Section 804(a) of the Community Reinvestment Act
of 1977 (12 U.S.C. 2903(a)) is amended—
(1) in paragraph (1), by striking ‘‘; and’’ at the
end and inserting;
(2) in paragraph (2), by striking the period and
inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(3) provide the institution with credit, for pur-
poses of satisfying the requirements of this Act, for
investments in, and loans to—
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‘‘(A) minority depository institutions and
women’s depository institutions (as defined in
section 808(b)); and
‘‘(B) joint ventures or other entities or
projects which provide benefits to distressed
communities, as such term is defined by the ap-
propriate Federal financial supervisory agency.
whether those minority or women’s depository insti-
tutions, or those communities, are located within or
outside of the service area of the regulated financial
institution.’’.
SEC. 
127. 
PROHIBITION 
ON 
ADDITIONAL 
REPORTING
UNDER CRA.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) is amended to read as follows:
‘‘SEC. 806. REGULATIONS.
‘‘Regulations to carry out the purposes of this title
shall be published by each appropriate Federal financial
supervisory agency. Such regulations and any policy state-
ments, commentary, examiner guidance, or other super-
visory material shall not impose any additional record-
keeping on a financial institution. No loan data may be
required to be collected and reported by a financial institu-
tion and no such data may be made public by any Federal
financial supervisory agency under this title.’’.
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SEC. 128. TECHNICAL AMENDMENT.
Section 807(b)(1)(B) of the Community Reinvest-
ment Act (12 U.S.C. 2906) is amended by striking ‘‘the
information’’ and inserting in its place ‘‘In the case of a
regulated financial institution that maintains domestic
branches in 2 or more States, the information’’.
SEC. 129. DUPLICATIVE REPORTING.
Section 10(g) of the Federal Home Loan Bank Act
(12 U.S.C. 1430(g)) is amended by adding at the end
thereof the following new paragraph (3):
‘‘(3) SPECIAL RULE.—This subsection shall not
apply to members receiving a grade of ‘outstanding’
or ‘satisfactory’ under section 807 of the Community
Reinvestment Act of 1977.’’.
Subtitle C—Consumer Banking
Reforms
SEC. 131. TRUTH IN SAVINGS.
(a) Section 262 of the Truth in Savings Act (12
U.S.C. 4301) is amended to read as follows:
‘‘SEC. 262. PURPOSE.
‘‘It is the purpose of this Act to ensure that consum-
ers can make a meaningful comparison between the com-
peting claims of depository institutions with regard to de-
posit accounts by requiring that institutions offering inter-
est-bearing accounts pay interest on the full amount of
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principal each day in a consumer deposit account at the
rate agreed to be paid by the institution.’’.
(b) Section 263 is amended to read as follows:
‘‘SEC. 263. PROHIBITION ON MISLEADING OR INACCURATE
ADVERTISEMENTS AND DISCLOSURES.
‘‘No depository institution or deposit broker shall
make any advertisement, announcement, solicitation or
disclosure relating to a deposit account that is inaccurate
or misleading or that misrepresents its deposit contracts.’’.
(c) Sections 264, 265, and 266 of the Truth in Sav-
ings Act (12 U.S.C. 4302, 4303, 4304, and 4305, respec-
tively) are hereby repealed.
(d) Section 267 of the Truth in Savings Act (12
U.S.C. 4306) is redesignated as Sec. 263.
(e) Section 268 of the Truth in Savings Act (12
U.S.C. 4307) is hereby repealed.
(f) Section 269 of the Truth in Savings Act (12
U.S.C. 4308) is redesignated as Sec. 264 and is amended
to read as follows:
‘‘SEC. 264. REGULATIONS.
‘‘(a) IN GENERAL.—The Board, after consultation
with each agency referred to in section 265(a) and public
notice and opportunity for comment, shall prescribe regu-
lations to carry out the purpose and provisions of this title.
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‘‘(b) EFFECTIVE DATE OF REGULATIONS.—The pro-
visions of this subtitle shall not apply with respect to any
depository institution before the effective date of regula-
tions prescribed by the Board under this subsection.’’.
(f) Section 270 of the Truth in Savings Act (12
U.S.C. 4309) is redesignated as Sec. 265.
(g) Sections 271 and 273 of the Truth in Savings
Act (12 U.S.C. 4310 and 4312) are hereby repealed.
(h) Section 272 of the Truth in Savings Act (12
U.S.C. 4311) is redesignated as Sec. 266.
(i) Section 274 of the Truth in Savings Act (12
U.S.C. 4313) is redesignated as Sec. 267 and is amended
to read as follows:
‘‘SEC. 267. DEFINITIONS.
‘‘For the purposes of this chapter—
‘‘(1) ACCOUNTS.—The term ‘account’ means
any account intended for use by and generally used
by a consumer primarily for personal, family, or
household purposes that is offered by a depository
institution into which a customer deposits funds, in-
cluding demand deposits, time accounts, negotiable
order of withdrawal accounts, and share draft ac-
counts.
‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’ has the meaning given such
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term in clauses (i) through (vi) of section
19(b)(1)(A) of the Federal Reserve Act.
‘‘(3) INTEREST.—The term ‘interest’ includes
dividends paid with respect to share draft accounts
which are accounts within the meaning of paragraph
(1).
‘‘(4) BOARD.—The term ‘Board’ means the
Board of Governors of the Federal Reserve Sys-
tem.’’.
SEC. 132. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.
(a) Section 909(a)(1) of the Electronic Fund Trans-
fer Act (15 U.S.C. 1693g(a)(1)) is amended by inserting
‘‘(or in cases where the cardholder has substantially con-
tributed to the unauthorized use, including writing on or
keeping with the card or other means of access a personal
identification or other security code, $500)’’ after ‘‘$50’’.
(b) Section 909 of the Electronic Fund Transfer Act
(15 U.S.C. 1693g) is amended by adding at the end the
following new subsections—
‘‘(f) Notwithstanding any provision of subsection (a)
or subsection (b)—
‘‘(1) a financial institution may request that a
consumer who alleges an unauthorized electronic
fund transfer involving the consumer’s account pro-
vide reasonable cooperation in connection with the
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financial institution’s investigation of the alleged un-
authorized electronic fund transfer; and
‘‘(2) the consumer shall remain liable for the
amount of the alleged unauthorized electronic fund
transfer if the consumer fails or refuses to provide
such cooperation, unless the financial institution oth-
erwise has information which confirms that the elec-
tronic fund transfer was unauthorized.
‘‘(g) Notwithstanding any provision of subsection (a)
or subsection (b), a consumer who authorizes a person to
use the consumer’s access device may be held liable by
the financial institution for all electronic fund transfers
made by such person using such access device prior to the
consumer revoking the authorization and notifying the fi-
nancial institution of the revocation in accordance with
procedures reasonably established by the financial institu-
tion for such a revocation of authority, as more specifically
provided by the Board in regulations prescribed under this
title.’’.
SEC. 133. 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);
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(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
account in connection with an extension of
consumer credit within 60 days of the trans-
mission 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 pro-
vided prior notice to the cardholder of such liabil-
ity.’’;
and inserting after paragraph (3) (as so redesig-
nated by paragraph (1) of this section):
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‘‘(4) Notwithstanding any other provision of
this subsection or subsection (b)—
‘‘(A) a card issuer may request that a
cardholder who alleges unauthorized use of his
or her credit card provide reasonable coopera-
tion in connection with the card issuer’s inves-
tigation of the alleged unauthorized use; and
‘‘(B) the cardholder shall remain liable for
the amount of the alleged unauthorized use if
the cardholder fails or refuses to provide such
cooperation, unless the card issuer otherwise
has information which clearly establishes the
unauthorized use.
‘‘(5) Notwithstanding any other provision of
this subsection or subsection (b), a cardholder who
authorizes a person to use the cardholder’s credit
card may be held liable by the card issuer for all ex-
tensions of credit which are obtained by such person
using such credit card prior to the cardholder revok-
ing the authorization and notifying the card issuer
of the revocation in accordance with procedures rea-
sonably established by the card issuer for such a rev-
ocation of authority, as more specifically provided by
the Board in regulations prescribed under this
title.’’.
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SEC. 134. INFORMATION SHARING.
Section 18 of the Federal Deposit Insurance Act (12
U.S.C. 1828) is amended by adding at the end the follow-
ing new subsection:
‘‘(s) CUSTOMER ACCESS TO PRODUCTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, any depository institution or any
affiliate or subsidiary thereof may share or exchange
information or otherwise transfer information be-
tween or among themselves without any restriction
or limitation if it is clearly and conspicuously dis-
closed that the information may be communicated
among such persons and the consumer is given the
opportunity, prior to the time that the information
is initially communicated, to direct that such infor-
mation not be communicated among such persons.
‘‘(2) DEFINITION.—For purposes of this sub-
section, ‘information’ means any and all data,
records, or other information and material obtained
or maintained by any depository institution or any
affiliate or subsidiary thereof in the ordinary course
of its business that relates in any way to a person
(as that term is defined in 15 U.S.C. 1681a(b)) who
applies for, maintains or has maintained an account
or credit relationship with or applied for, purchased
or obtained other products or services from any de-
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pository institution or any affiliate or subsidiary
thereof, regardless of the source or manner in which
the information is obtained or furnished.
‘‘(3) RULE OF CONSTRUCTION.—Any depository
institution or any affiliate or subsidiary thereof rely-
ing on this subsection shall not be deemed to be a
consumer reporting agency, user or third party, and
the information itself shall not constitute a
consumer report, within the meaning of Fair Credit
Reporting Act or other similar law.’’.
SEC. 135. ELECTRONIC FUND TRANSFER ACT CLARIFICA-
TION.
(a) Section 903(1) of the Electronic Fund Transfer
Act (15 U.S.C. 1693a(1)) is amended by inserting before
the semicolon the following: ‘‘, but such term does not in-
clude a card or device that a person may use to pay for
transactions through use of value stored on the card or
device itself, except for those transactions where such card
or device is actually used to access an account to effect
such transaction’’.
(b) Section 903(2) of the Electronic Fund Transfer
Act (15 U.S.C. 1693a(2)) is amended by inserting before
the semicolon the following: ‘‘and does not include any
value which is stored on a card or device itself that enables
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a person to pay for transactions through use of that stored
value’’.
Subtitle D—Equal Credit
Opportunity Act Amendments
SEC. 141. SHORT TITLE.
This subtitle may be cited as the Equal Credit Oppor-
tunity Act Amendments of 1995.
SEC. 142. FINDINGS AND PURPOSE.
(a) The Congress finds that both the Equal Credit
Opportunity Act (15 U.S.C. 1691, et seq.) and the Fair
Credit Reporting Act (15 U.S.C. 1681, et seq.) contain
requirements that applicants for consumer credit be given
certain information in the event that adverse action is
taken on the application. These requirements differ in
both scope and content and for that reason are confusing
to both the consumer who receives the information and
the party required to furnish the information.
(b) It is the purpose of this Act to combine and sim-
plify the adverse action notification requirements of the
Equal Credit Opportunity Act and the Fair Credit Report-
ing Act regarding applications for consumer credit and to
make the information that is required to be furnished
more understandable.
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SEC. 143. EQUAL CREDIT OPPORTUNITY ACT AMEND-
MENTS.
(a) Section 701(d)(2)(B) of the Equal Credit Oppor-
tunity Act (15 U.S.C. 1691(d)(2)(B)) is amended to read
as follows:
‘‘(B) Giving written notification of adverse
action which discloses—
‘‘(i) the applicant’s right to a state-
ment of reasons within thirty days after
receipt by the creditor of a request made
within sixty days after such notification;
‘‘(ii) if credit is denied or the charge
for such credit is increased either wholly or
partly because of information contained in
a consumer report from a consumer re-
porting agency, that fact and the name
and address of the consumer reporting
agency making the report;
‘‘(iii) if credit is denied or the charge
therefor is increased either wholly or partly
because of information obtained from a
person other than a consumer reporting
agency bearing upon the consumer’s credit
worthiness, credit standing, credit capacity,
character, general reputation, personal
characteristics or mode of living, that fact
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and the right to receive disclosure of the
nature of the information so received upon
receipt of the consumer’s written request
therefor within sixty days after learning of
such adverse action; and
‘‘(iv) the identity of the person or of-
fice from which such notification may be
obtained.
Such statement of reasons may be given orally
if the written notification advises the applicant
of his right to have the statement of reasons
confirmed in writing on written request.’’.
(b) Paragraph 701(d)(3) of the Equal Credit Oppor-
tunity Act (15 U.S.C. 1691(d)(3)) is amended by striking
the period at the end and adding the following: ‘‘and, to
the extent applicable, the name and address of the
consumer reporting agency identified in accordance with
the requirements of subsection (d)(3)(ii) and a statement
of the right to obtain disclosure of the nature of the infor-
mation upon which adverse action was taken as required
by subsection (d)(3)(iii).’’.
(c) Section 706 of the Equal Credit Opportunity Act
(15 U.S.C. 1691e) is amended by adding at the end the
following new subsection:
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‘‘(e) No person shall be held liable for any violation
of subsection 701(d) hereof if he shows by a preponder-
ance of the evidence that at the time of the alleged viola-
tion he maintained reasonable procedures to assure com-
pliance with the provisions of the subsection.’’.
SEC. 144. FAIR CREDIT REPORTING ACT AMENDMENTS.
(a) Section 615(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681m(a)) is amended by striking ‘‘credit or’’
each time such term appears.
(b) Section 615 of the Fair Credit Reporting Act (15
U.S.C. 1681m) is amended by striking subsection (b) and
redesignating subsection (c) as subsection (b).
(c) Section 615(b) (as redesignated by this section)
of the Fair Credit Reporting Act (15 U.S.C. 1681m(b))
is amended by striking ‘‘subsections (a) and (b)’’ and in-
serting ‘‘subsection (a)’’.
SEC. 145. INCENTIVES FOR SELF-TESTING.
(a) EQUAL
CREDIT
OPPORTUNITY.—The Equal
Credit Opportunity Act (15 U.S.C. 1691 et seq.) is
amended—
(1) by inserting after section 704 the following
new section:
‘‘SEC. 704A. SELF-TESTING ENHANCEMENT.
‘‘Whenever a creditor conducts, or authorizes an
independent third party to conduct, a test or review of
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the creditor’s lending or any part of its lending operations
in order to determine the level or effectiveness of compli-
ance with this Act by the creditor, then any report or re-
sults of such a test or review may not be reviewed, ob-
tained, examined or otherwise acquired or used by any ap-
plicant in any proceeding or civil action brought under this
Act.’’;
(2) in section 706(g), by inserting the following
new language after the 2d sentence: ‘‘No agency
shall refer a matter to the Attorney General if the
creditor has already identified the matter as a pos-
sible violation of the Equal Credit Opportunity Act
as the result of internal review, self-testing, compli-
ance review or other audit or review procedure insti-
tuted by the creditor to determine compliance with
the Act. No provision of this section shall be con-
strued as limiting the authority of the agency to en-
force the provisions of this Act under any other pro-
vision of law.’’; and
(3) in section 706(k), by adding at the end the
following: ‘‘No agency referred to in paragraph (1),
(2), or (3) of section 704(a) shall notify the Sec-
retary of Housing and Urban Development or the
applicant of a violation of the Equal Credit Oppor-
tunity Act or of the Fair Housing Act if the creditor
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has already identified the matter as a possible viola-
tion of either of those Acts as a result of internal
review, self-testing, compliance review or other audit
or review procedure instituted by the creditor to de-
termine compliance with the Act. No provisions of
this section shall be construed as limiting the au-
thority of the agency to enforce the provisions of this
Act under any other provision of law.’’.
(b) FAIR HOUSING.—The Fair Housing Act (42
U.S.C. 3601 et seq.) is amended by adding the following:
‘‘SEC. 814A. SELF-TESTING ENHANCEMENT.
‘‘Whenever any person conducts, or authorizes an
independent third party to conduct, a test or review of
that person’s residential real estate or real estate-related
activities or any part thereof in order to determine the
level or effectiveness of compliance with this Act by the
person, then any report or results of such a test or review
may not be reviewed, obtained, examined or otherwise ac-
quired or used by the applicant, aggrieved party, or com-
plainant in any proceeding or civil action brought under
this Act.’’.
SEC. 146. CREDIT SCORING SYSTEMS.
Section 701 of the Equal Credit Opportunity Act (15
U.S.C. 1691) is amended by adding at the end the follow-
ing new subsection:
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‘‘(f) A creditor shall be deemed to be in compliance
with subsection (a) with respect to any credit decision
made by the creditor which is based solely on the use of
an empirically derived, demonstrably and statistically
sound, credit scoring system, as defined by the Board in
regulations prescribed under this title, if such system does
not utilize any category protected under subsection (a) or
use as a factor in such system any criterion which is so
directly associated with such a category as to be the func-
tional equivalent of such a category. Nothing in this sub-
section shall preclude a creditor from using age as a factor
in such a system as otherwise permitted under this title.’’.
SEC. 147. EFFECTIVE DATE.
This Act shall take effect 270 days after enactment.
The Board of Governors of the Federal Reserve System
shall promulgate regulations to implement this Act at least
90 days before its effective date.
Subtitle E—Consumer Leasing Act
Amendments
SEC. 151. SHORT TITLE.
This subtitle may be cited as the Consumer Leasing
Act Amendments of 1995.
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SEC. 152. CONGRESSIONAL FINDINGS AND DECLARATION
OF PURPOSE.
(a) The Congress finds that competition among the
various financial institutions and other firms engaged in
the business of consumer leasing is greatest when there
is informed use of leasing. The informed use of leasing
results from an awareness of the cost thereof by consum-
ers. It is the purpose of this subchapter to assure a simple,
meaningful disclosure of leasing terms so that the
consumer will be able to compare more readily the various
leasing terms available to him and avoid the uninformed
use of leasing, and to protect the consumer against inac-
curate and unfair leasing practices.
(b) The Congress also finds that there has been a
continued trend toward leasing automobiles and other du-
rable goods for consumer use as an alternative to install-
ment credit sales and that leasing product advances have
occurred such that lessors have been unable to provide
consistent industry-wide disclosures to fully account for
the competitive progress that has occurred. To provide for
adequate cost disclosures that reflect the marketplace
without impairing competition and the development of new
leasing products it is the purpose of this subchapter to
provide the Board with the regulatory authority to assure
a simplified, meaningful definition and disclosure of the
terms of certain leases of personal property for personal,
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family, or household purposes so as to enable the lessee
to compare more readily the various lease terms available
to the lessee, enable comparison of lease terms with credit
terms where appropriate and to assure meaningful and ac-
curate disclosures of lease terms in advertisements.
SEC. 153. REGULATIONS.
Chapter 5 of the Consumer Credit Protection Act is
amended by adding at the end the following new section:
‘‘SEC. 187. REGULATIONS.
‘‘(a) IN GENERAL.—The Board shall write regula-
tions or staff commentary, if appropriate, to update and
clarify the requirements and definitions for lease disclo-
sures, contracts, and any other specific issues related to
consumer leasing which would carry out the purposes of
the Consumer Leasing Act, to prevent its circumvention,
and to facilitate compliance with its requirements. The
regulations may contain classifications and differentia-
tions and may provide for adjustments and exceptions for
any class of transaction.
‘‘(b) MODEL DISCLOSURES.—The Board shall pub-
lish model disclosure forms and clauses to facilitate com-
pliance with the disclosure requirements and to aid the
consumer in understanding the transaction. In designing
forms, the Board shall consider the use by lessors of data
processing or similar automated equipment. Use of the
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models shall be optional. A lessor who properly uses the
material aspects of the models shall be deemed to be in
compliance with the disclosure requirements.
‘‘(c) EFFECTIVE DATES.—Any regulation of the
Board, or any amendment or interpretation thereof, that
requires a disclosure different from the disclosures pre-
viously required shall have an effective date of October 1
that follows the date of promulgation by at least six
months. The Board may at its discretion lengthen that
period of time to permit lessors to adjust their forms to
accommodate new requirements. The Board may also
shorten that period of time if it makes a specific finding
that such action is necessary to comply with the findings
of a court or to prevent unfair or deceptive practices. In
any case, lessors may comply with any newly promulgated
disclosure requirement prior to its effective date.’’.
SEC. 154. SEGREGATED LEASING DISCLOSURES.
Section 182 of the Consumer Credit Protection Act
as amended (15 U.S.C. 1667(a)) is amended—
(a) by inserting ‘‘(a)’’ before ‘‘Each lessor’’ in
the first sentence; and,
(b) by adding at the end the following new sub-
section:
‘‘(b) Prior to or at the time the consumer receives
the disclosure required under section 182(a), the lessor
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shall separately disclose, to the extent applicable, each of
the following items in a tabular format in a manner to
be prescribed by the Board:
‘‘(1) Total amount of funds due at lease incep-
tion. This amount shall include any security deposit,
whether or not it is refundable and any other fees
required to be paid to the lessor at lease inception
by the consumer.
‘‘(2) Total monthly payment due to the Lessor.
This amount does not include any taxes payable by
the lessee to any governmental entity.
‘‘(3) Number of Payments.
‘‘(4) Total of Monthly Payments.
‘‘(5) Capitalized Cost.
‘‘(6) Residual Value.
‘‘(7) Whether or not the Lessee has the right
to purchase the Vehicle during or at the end of the
Lease.
‘‘(8) Excess Mileage Charge: The amount that
the Lessee, at scheduled termination, must pay for
each mile in excess of a pre-determined number of
miles.
‘‘(9) Early Termination: In the even of early
termination of the lease by the lessee, the disclosure
of the payment allocation method by name alone
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which would facilitate comparison shopping by con-
sumers.
In prescribing regulations to carry out this clause, the
Board shall define and name not more than the five early
termination liability calculation methods determined by
the Board to be the most commonly used methods.’’.
SEC. 155. CONSUMER LEASE ADVERTISING.
Section 184 of the Consumer Credit Protection Act
(15 U.S.C. 1667(c)) is amended to read as follows:
‘‘SEC. 184. CONSUMER LEASE ADVERTISING.
‘‘(a) If an advertisement for a consumer lease states
the amount of any payment or states that any or no initial
payment is required, the advertisement must also clearly
and conspicuously state the following terms, as applicable:
‘‘(1) That the transaction advertised is a lease.
‘‘(2) The total of initial payments required at
or before consummation of the lease or delivery of
the property, whichever is later.
‘‘(3) That a security deposit is required.
‘‘(4) The number, amounts, and timing of
scheduled payments.
‘‘(5) For a lease in which the consumer’s liabil-
ity at the end of the lease term is based on the an-
ticipated residual value of the property, that an
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extra charge may be imposed at the end of the lease
term.
‘‘(b) Any owner or personnel of any medium in which
an advertisement appears or through which it is dissemi-
nated shall not be liable under this section.’’.
Subtitle F—Federal Home Loan
Bank Amendments
SEC. 161. APPLICATION FOR MEMBERSHIP IN THE FHLB
SYSTEM.
Section 4(b) of the Federal Home Loan Bank Act
(12 U.S.C. 1424) is amended to read as follows:
‘‘(b) MEMBERSHIP BASED ON CONVENIENCY.—An
institution eligible to become a member under this section
may become a member by submitting its application for
membership to the Bank in the district where the appli-
cant’s principal place of business is located. An application
for membership shall be approved by the Bank if, in the
judgment of the Bank, the applicant meets the criteria
for eligibility contained in this section. An institution eligi-
ble to become a member under this section may apply for
membership in an adjoining district, if appropriate for the
convenience of the institution and then only with the ap-
proval of the Board.’’.
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SEC. 
162. 
FEDERAL 
HOME 
LOAN 
BANK 
EXTERNAL
AUDITORS.
Section 11(j) of the Federal Home Loan Bank Act
(12 U.S.C. 1431(j)) is amended to read as follows:
‘‘(j) AUDITS.—
‘‘(1) Notwithstanding the provisions of section
9105(a)(1)(B) of title 31, United States Code, au-
dits by the General Accounting Office of the finan-
cial transactions of a Federal home loan bank shall
not be limited to periods during which Government
capital has been invested therein. The provisions of
section 9107(c)(2) and 9108(d)(1) of title 31, of
such Code, shall not apply to any Federal home loan
bank.
‘‘(2) Notwithstanding any other provision of
law, the Board shall not participate in the hiring of
an external auditor by the banks; except, that the
Board may establish requirements for external audit
contracts and accounting standards and, that all 12
banks shall contract for an annual audit with a sin-
gle provider.’’.
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TITLE II—STREAMLINING
GOVERNMENT REGULATIONS
Subtitle A—Regulatory Approval
Issues
SEC. 201. STREAMLINED NONBANKING ACQUISITIONS BY
WELL CAPITALIZED AND WELL MANAGED
BANKING ORGANIZATIONS.
(a) NOTICE REQUIREMENTS.—Section 4(j) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1843(j))
is amended as follows:
(1) In paragraph (1), strike ‘‘No’’ and insert in
its place ‘‘Except as provided in paragraph (3), no’’;
(2) add at the end the following new para-
graphs:
‘‘(3) NO
NOTICE
REQUIRED
FOR
CERTAIN
TRANSACTIONS.—No notice under paragraph (1) or
subsections (c)(8) or (a)(2)(B) is required for a pro-
posal by a bank holding company to engage in any
activity or acquire the shares or assets of any com-
pany if the proposal qualifies under paragraph (4).
‘‘(4) CRITERIA FOR STATUTORY APPROVAL.—A
proposal qualifies under this paragraph if all of the
following criteria are met:
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‘‘(A) FINANCIAL
CRITERIA.—Both before
and immediately after the proposed trans-
action—
‘‘(i) the acquiring bank holding com-
pany is well capitalized;
‘‘(ii) the lead insured depository insti-
tution of such holding company is well cap-
italized;
‘‘(iii) well capitalized insured deposi-
tory institutions control at least 80 percent
of the aggregate total risk-weighted assets
of insured depository institutions controlled
by such holding company; and
‘‘(iv) no insured depository institution
controlled by such holding company is
undercapitalized.
‘‘(B) MANAGERIAL CRITERIA.—
‘‘(i) WELL MANAGED.—At the time of
the transaction, the acquiring bank holding
company, its lead insured depository insti-
tution, and insured depository institutions
that control at least 90 percent of the ag-
gregate total risk-weighted assets of in-
sured depository institutions controlled by
such holding company are well managed.
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‘‘(ii) LIMITATION
ON
POORLY
MAN-
AGED INSTITUTIONS.—
‘‘(I) IN
GENERAL.—No insured
depository institution controlled by
the acquiring bank holding company
has received one of the lowest 2 com-
posite ratings at the later of the insti-
tution’s most recent examination or
subsequent review.
‘‘(II) RECENTLY
ACQUIRED
IN-
STITUTIONS.—Insured depository in-
stitutions acquired by the bank hold-
ing company within the previous 12
months may be excluded for purposes
of subclause (I) if—
‘‘(aa) the bank holding com-
pany has developed a plan ac-
ceptable to the appropriate Fed-
eral banking agency (as defined
in section 3 of the Federal De-
posit Insurance Act) for the insti-
tution to restore the capital and
management of the institution;
and
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‘‘(bb) all such insured depos-
itory institutions represent, in
the aggregate, less than 10 per-
cent of the aggregate total risk-
weighted assets of all insured de-
pository institutions controlled by
the bank holding company.
‘‘(C) ACTIVITIES PERMISSIBLE.—Following
consummation of the proposal, the bank holding
company engages directly or through a subsidi-
ary solely in—
‘‘(i) activities that are permissible
under subsection (c)(8), as determined by
the Board by regulation or order there-
under, subject to all of the restrictions,
terms and conditions of such subsection
and such regulation or order; and
‘‘(ii) such other activities as are other-
wise permissible under this section, subject
to the restrictions, terms and conditions,
including any prior notice or approval re-
quirements, provided in this section.
‘‘(D) SIZE OF ACQUISITION.—
‘‘(i) ASSET SIZE.—The book value of
the total assets acquired does not exceed
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10 percent of the consolidated total risk-
weighted assets of the acquiring bank hold-
ing company; and
‘‘(ii) 
CONSIDERATION.—The 
gross
consideration to be paid for the securities
or assets does not exceed 15 percent of the
consolidated Tier 1 capital of the acquiring
bank holding company.
‘‘(E) NOTICE
NOT
OTHERWISE
WAR-
RANTED.—For proposals described in para-
graph (5)(B), the Board has not, prior to the
conclusion of the period provided in paragraph
(5)(B), advised the bank holding company that
a notice under paragraph (1) is required.
‘‘(5) NOTIFICATION.—
‘‘(A) COMMENCEMENT OF ACTIVITIES AP-
PROVED BY RULE.—A bank holding company
that qualifies under paragraph (4) and that
proposes to engage de novo, directly or through
a subsidiary, in any activity that is permissible
under subsection (c)(8), as determined by the
Board by regulation, may commence that activ-
ity without prior notice to the Board and must
provide written notification to the Board no
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later than 10 business days after commencing
the activity.
‘‘(B) ACTIVITIES
PERMITTED
BY
ORDER
AND ACQUISITIONS.—At least 12 business days
prior to commencing any activity pursuant to
paragraph (3) other than an activity described
in subparagraph (A) or acquiring shares or as-
sets of any company pursuant to paragraph (3),
the bank holding company must provide the
Board written notification of the proposal, un-
less the Board determines that no notice or a
shorter notice period is appropriate. A notifica-
tion under this subparagraph must include a
description of the proposed activities and the
terms of any proposed acquisition.
‘‘(6) ADJUSTMENT OF AMOUNTS.—The Board
may by regulation adjust the amounts and the man-
ner in which the percentage of insured depository in-
stitutions is calculated under paragraph (4)(B)(i),
paragraph (4)(B)(ii)(II)(bb), and paragraph (4)(D)
if the Board determines that any such adjustment is
consistent with safety and soundness and the pur-
poses of this Act.’’.
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(b) DEFINITIONS.—Section 2(o)(1) of the Bank
Holding Company Act (12 U.S.C. 1841) is amended by
adding at the end the following new paragraphs:
‘‘(1) CAPITAL TERMS.—
‘‘(A) 
INSURED
DEPOSITORY
INSTITU-
TIONS.—With respect to insured depository in-
stitutions, the terms ‘well-capitalized,’ ‘ade-
quately capitalized,’ and ‘undercapitalized’ have
the meaning given those terms in section 38(b)
of the Federal Deposit Insurance Act.
‘‘(B) BANK HOLDING COMPANY.—
‘‘(i) 
ADEQUATELY
CAPITALIZED.—
The term ‘adequately capitalized’ means a
level of capitalization which meets or ex-
ceeds all applicable Federal regulatory cap-
ital standards;
‘‘(ii) WELL
CAPITALIZED.—A bank
holding company is ‘well capitalized’ if it
meets the required capital levels for well
capitalized bank holding companies estab-
lished by the Board.
‘‘(C) OTHER CAPITAL TERMS.—The term
‘Tier 1’ and ‘risk-weighted assets’ have the
meaning given those terms in the capital guide-
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lines or regulations established by the Board for
bank holding companies.
‘‘(p) LEAD INSURED DEPOSITORY INSTITUTION.—
The term ‘lead insured depository institution’ means the
largest insured depository institution controlled by the
bank holding company at any time, based on a comparison
of the average total risk-weighted assets controlled by each
insured depository institution during the previous 12
month period. For purposes of this subsection and section
4(j)(4), the term ‘insured depository institution’ shall also
include any branch or agency operated in the United
States by a foreign bank.
‘‘(q) WELL MANAGED.—A company or depository in-
stitution is ‘well managed’ if, at its most recent examina-
tion or subsequent review, the company or institution re-
ceived—
‘‘(1) one of the highest 2 composite ratings;
and
‘‘(2) at least a satisfactory rating for manage-
ment, if such rating is given.’’.
SEC. 202. STREAMLINED BANK ACQUISITIONS BY WELL
CAPITALIZED AND WELL MANAGED BANKING
ORGANIZATIONS.
(a) BANK HOLDING COMPANY ACT AMENDMENTS.—
Section 3 of the Bank Holding Company Act (12 U.S.C.
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1842) is amended by adding at the end the following new
subsection:
‘‘(h) NO APPROVAL REQUIRED FOR CERTAIN TRANS-
ACTIONS.—Notwithstanding subsections (a)(3) or (a)(5),
an acquisition of shares by a registered bank holding com-
pany, or a merger or consolidation between registered
bank holding companies, shall be deemed approved at the
conclusion of the period specified in paragraph (7) if—
‘‘(1) FINANCIAL AND MANAGERIAL CRITERIA.—
‘‘(A) WELL CAPITALIZED BANK HOLDING
COMPANY.—Both at the time of and imme-
diately after the proposed transaction, the ac-
quiring bank holding company is well capital-
ized.
‘‘(B) WELL CAPITALIZED LEAD INSURED
DEPOSITORY INSTITUTION.—Both at the time
of and immediately after the proposed trans-
action, the lead insured depository institution of
the acquiring bank holding company is well cap-
italized.
‘‘(C) CAPITAL OF OTHER INSURED DEPOSI-
TORY INSTITUTIONS.—At the time of the trans-
action, well capitalized insured depository insti-
tutions control at least 80 percent of the aggre-
gate total risk-weighted assets of insured depos-
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itory institutions controlled by the acquiring
bank holding company.
‘‘(D) NO
UNDERCAPITALIZED
INSURED
DEPOSITORY INSTITUTIONS.—At the time of the
transaction, no insured depository institution
controlled by the acquiring bank holding com-
pany is undercapitalized.
‘‘(E) WELL MANAGED.—
‘‘(i) IN GENERAL.—At the time of the
transaction, the acquiring bank holding
company, its lead insured depository insti-
tution, and insured depository institutions
that control at least 90 percent of the ag-
gregate total risk-weighted assets of in-
sured depository institutions controlled by
such holding company are well managed.
‘‘(ii) NO POORLY MANAGED INSTITU-
TIONS.—
‘‘(I) IN
GENERAL.—No insured
depository institution controlled by
the acquiring bank holding company
has received one of the lowest two
composite ratings at the later of the
institution’s most recent examination
or subsequent review.
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‘‘(II) RECENTLY
ACQUIRED
IN-
STITUTIONS.—Insured depository in-
stitutions acquired by the bank hold-
ing company within the previous 12
months may be excluded for purposes
of subclause (I) if—
‘‘(aa) the bank holding com-
pany has developed a plan ac-
ceptable to the appropriate Fed-
eral banking agency (as defined
in section 3 of the Federal De-
posit Insurance Act) for the insti-
tution to restore the capital and
management of the institution;
and
‘‘(bb) all such insured depos-
itory institutions represent, in
the aggregate, less than 10 per-
cent of the aggregate total risk-
weighted assets of all insured de-
pository institutions controlled by
the holding company.
‘‘(iii) ADJUSTMENT
OF
AMOUNTS.—
The Board may by regulation adjust the
amounts and the manner in which the per-
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centage of insured depository institutions
is 
calculated 
under 
clauses 
(i) 
and
(ii)(II)(bb) if the Board determines that
such adjustment is consistent with safety
and soundness and the purposes of this
Act.
‘‘(2) NO UNSATISFACTORY CRA RATINGS.—
‘‘(A) IN GENERAL.—No insured depository
institution controlled by the acquiring bank
holding company has received a ‘needs to im-
prove’ or ‘substantial noncompliance’ composite
rating at its most recent examination under the
Community Reinvestment Act.
‘‘(B) 
RECENTLY
ACQUIRED
INSTITU-
TIONS.—Insured depository institutions ac-
quired by such bank holding company within
the previous 12 months may be excluded for
purposes of subparagraph (A) if the bank hold-
ing company has developed a plan acceptable to
the appropriate Federal banking agency (as de-
fined in section 3 of the Federal Deposit Insur-
ance Act) to restore the performance of the in-
stitution to at least a ‘satisfactory’ rating under
the Community Reinvestment Act.
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‘‘(3) COMPETITIVE
CRITERIA.—Consummation
of the proposal complies with guidelines established
by the Board by regulation, after consultation with
the Attorney General, that identify proposals that
are not likely to have a significantly adverse effect
on competition in any relevant market.
‘‘(4) SIZE OF ACQUISITION.—
‘‘(A) LIMITATIONS.—
‘‘(i) ASSET SIZE.—The book value of
the total assets acquired does not exceed
10 percent of the consolidated total risk
weighted assets of the acquiring bank hold-
ing company.
‘‘(ii) 
CONSIDERATION.—The 
gross
consideration to be paid for the securities
or assets does not exceed 15 percent of the
consolidated Tier 1 capital of the acquiring
bank holding company.
‘‘(B) ADJUSTMENT TO LIMITATIONS.—The
Board may by regulation adjust the limitations
established in this paragraph in a manner con-
sistent with safety and soundness and the pur-
poses of this Act.
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‘‘(5) INTERSTATE
ACQUISITIONS.—Board ap-
proval of the transaction is not prohibited under
subsection (d).
‘‘(6) OTHER
CONSIDERATIONS.—Board ap-
proval of the transaction is not prohibited under
subsection (c)(3); and
‘‘(7) NOTIFICATION.—The acquiring bank hold-
ing company provides the Board with written notice
of the transaction, including a description of the
terms of the transaction, at least 15 business days
(or such shorter period as permitted by the Board)
prior to consummation of the transaction, and, prior
to the conclusion of that period, the Board has not
required an application under subsection (a).’’.
SEC. 203. ELIMINATE BANK MERGER ACT FILING AND AP-
PROVAL REQUIREMENTS FOR INSURED DE-
POSITORY 
INSTITUTIONS 
ALREADY 
CON-
TROLLED BY THE SAME HOLDING COMPANY.
Section 18(c) of the Federal Deposit Insurance Act
is amended by adding at the end the following new para-
graph:
‘‘(12) The provisions of this subsection shall
not apply to any merger, consolidation, acquisition
of assets or assumption of liabilities involving only
insured depository institutions that are subsidiaries
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of the same depository institution holding company
if—
‘‘(A) the responsible agency would not be
prohibited from approving the transaction
under section 44;
‘‘(B) the acquiring, assuming, or resulting
institution complies with all applicable provi-
sions of section 44 as if the merger, consolida-
tion, or acquisition were approved under this
subsection; and
‘‘(C) the acquiring, assuming, or resulting
institution provides written notification of the
transaction to the appropriate Federal banking
agency for the institution at least 10 days prior
to consummation of the transaction.’’.
SEC. 204. ELIMINATE REDUNDANT APPROVAL REQUIRE-
MENT FOR OAKAR TRANSACTIONS.
Section 5(d)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1815(d)(3)) is amended—
(1) in subparagraph (A), by striking ‘‘with the
prior written approval of the responsible agency
under section 18(c)(2)’’;
(2) in subparagraph (E)—
(A) by striking clause (iv) and inserting
the following new clause:
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‘‘(iv) A transaction shall not be au-
thorized under this paragraph unless the
acquiring, assuming, or resulting deposi-
tory institution will meet all applicable cap-
ital requirements upon consummation of
the transaction.’’;
(B) by striking clauses (i) and (ii); and
(C) by redesignating clauses (iii) and (iv)
as clauses (i) and (ii), respectively;
(3) by striking subparagraph (G) and redesig-
nating the subsequent subparagraphs accordingly.
SEC. 205. ELIMINATE DUPLICATIVE REQUIREMENTS IM-
POSED 
ON 
BANK 
HOLDING 
COMPANIES
UNDER THE HOME OWNERS’ LOAN ACT.
(a) Section 10(a) of the Home Owners’ Loan Act (12
U.S.C. 1467a(a)) is amended by adding at the end the
following new paragraph:
‘‘(5) EXEMPTION FOR BANK HOLDING COMPA-
NIES.—The provisions of this section shall not apply
to any company that is a bank holding company reg-
istered under, and subject to, the provisions of the
Bank Holding Company Act, or to any company di-
rectly or indirectly controlled by such company
(other than a savings association).’’.
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(b) Section 10(a)(1)(D) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(a)(1)(D)) is amended to read as
follows:
‘‘(i) SAVINGS
AND
LOAN
HOLDING
COMPANY.—Except as provided in clause
(ii), the term ‘savings and loan holding
company’ means any company which di-
rectly or indirectly controls a savings asso-
ciation or controls any other company
which is a savings and loan holding com-
pany.
‘‘(ii) EXCLUSION.—The term ‘savings
and loan holding company’ does not in-
clude a bank holding company that is reg-
istered under, and subject to, the provi-
sions of the Bank Holding Company Act,
or any company controlled by such bank
holding company.’’.
(c) Section 10(e)(1)(B) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(e)(1)(B)) is amended—
(1) by striking ‘‘or (ii)’’ and inserting ‘‘(ii)’’;
(2) by inserting before the period at the end of
the first sentence the following: ‘‘, or (iii) acquired
by a bank holding company that is registered under,
and subject to, the provisions of the Bank Holding
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Company Act, or any company controlled by such
bank holding company’’.
SEC. 206. ELIMINATE REQUIREMENT THAT APPROVAL BE
OBTAINED FOR DIVESTITURES.
Section 2(g) of the Bank Holding Company Act (12
U.S.C. 1841(g)) is amended—
(1) by striking paragraph (3);
(2) by inserting ‘‘and’’ after paragraph (1); and
(3) by striking ‘‘; and’’ at the end of paragraph
(2) and inserting a period.
SEC. 207. ELIMINATE UNNECESSARY BRANCH APPLICA-
TIONS.
(a) NATIONAL BANK BRANCH APPLICATIONS.—Sec-
tion 5155(i) of the Revised Statutes (12 U.S.C. 36(i)) is
amended—
(1) by striking ‘‘No branch’’ and inserting the
following:
‘‘(1) APPROVAL
REQUIRED.—Except as pro-
vided in paragraph (2), no branch’’; and
(2) by adding at the end the following new
paragraphs:
‘‘(2) NO
APPROVAL
REQUIRED
FOR
CERTAIN
BRANCHES.—Notwithstanding this subsection, sub-
section (b) or subsection (c), the consent and ap-
proval of the Comptroller of the Currency shall not
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be required for a national banking association to es-
tablish and operate, or to retain and operate, a
branch or seasonal agency if—
‘‘(A) the association is well-capitalized, as
that term is defined in section 38 of the Fed-
eral Deposit Insurance Act and regulations pre-
scribed by the Comptroller of the Currency
under such section;
‘‘(B) the association received a composite
CAMEL rating of ‘1’ or ‘2’ under the Uniform
Financial Institutions Rating System (or an
equivalent rating under a comparable rating
system) as of its most recent examination;
‘‘(C) the association did not receive a
‘needs to improve’ or ‘substantial noncompli-
ance’ composite rating at its most recent exam-
ination under the Community Reinvestment
Act; and
‘‘(D) the Comptroller of the Currency is
authorized to grant approval under this section
to such association to establish and operate, or
to retain and operate, a branch or seasonal
agency at the proposed location.
‘‘(3) A branch or seasonal agency established by
a national banking association under paragraph (2)
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shall be deemed to have been established and oper-
ated pursuant to an application approved under this
section.’’.
(b) STATE
MEMBER
BANK
BRANCH
APPLICA-
TIONS.—The third undesignated paragraph of section 9
of the Federal Reserve Act (12 U.S.C. 321) is amended
by adding at the end the following: ‘‘Notwithstanding the
previous two sentences, the approval of the Board shall
not be required for a State member bank to establish and
operate a branch or seasonal agency if—
‘‘(A) the State member bank is well-capitalized,
as that term is defined in section 38 of the Federal
Deposit Insurance Act and regulations prescribed by
the Board under such section;
‘‘(B) the State member bank received a com-
posite CAMEL rating of ‘1’ or ‘2’ under the Uni-
form Financial Institutions Rating System (or an
equivalent rating under a comparable rating sys-
tem);
‘‘(C) the State member bank did not receive a
‘needs to improve’ or ‘substantial noncompliance’
composite rating at its most recent examination
under the Community Reinvestment Act; and
‘‘(D) the Board is authorized to grant approval
under this section to such State member bank to es-
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tablish and operate a branch or seasonal agency at
the proposed location.
A branch or seasonal agency established by a State mem-
ber bank under the previous sentence shall be deemed to
have been established and operated pursuant to an appli-
cation approved under this section.’’.
(c) STATE NONMEMBER BANK BRANCH APPLICA-
TIONS.—Section 18(d) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(d)) is amended by adding at the end
the following new paragraphs:
‘‘(5) APPLICATION
EXEMPTION
FOR
CERTAIN
BANKS.—Notwithstanding paragraph (1), the con-
sent of the Corporation shall not be required for a
State nonmember insured bank to establish and op-
erate any domestic branch if—
‘‘(A) the bank is well-capitalized, as that
term is defined in section 38 and regulations
prescribed by the Corporation under such sec-
tion;
‘‘(B) the bank received a composite
CAMEL rating of ‘1’ or ‘2’ under the Uniform
Financial Institutions Rating System (or an
equivalent rating under a comparable rating
system) as of its most recent examination;
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‘‘(C) the bank did not receive a ‘needs to
improve’ or ‘substantial noncompliance’ compos-
ite rating at its most recent examination under
the Community Reinvestment Act; and
‘‘(D) the Corporation is authorized to give
consent under this section to such bank to es-
tablish and operate a domestic branch at the
proposed location.
‘‘(6) APPROVAL
GRANTED.—A branch estab-
lished by a State member bank under paragraph (5)
shall be deemed to have been established and oper-
ated pursuant to an application approved under this
section.’’.
SEC. 208. ELIMINATE BRANCH APPLICATIONS/REQUIRE-
MENTS FOR ATMs AND SIMILAR FACILITIES.
(1) ‘‘BRANCH’’ UNDER NATIONAL BANK ACT.—Sec-
tion 5155(j) of the Revised Statutes (12 U.S.C. 36(j)) is
amended by adding at the end the following: ‘‘The term
‘branch’ does not include automated teller machines or re-
mote service units.’’.
(2) ‘‘BRANCH’’ UNDER FEDERAL DEPOSIT INSUR-
ANCE ACT.—Section 3(o) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(o)) is amended by striking
‘‘lent; and the’’ and inserting ‘‘lent. The term ‘domestic
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branch’ does not include automated teller machines or re-
mote service units. The’’.
SEC. 209. ELIMINATE REQUIREMENT FOR APPROVAL OF IN-
VESTMENTS IN BANK PREMISES FOR WELL
CAPITALIZED AND WELL MANAGED BANKS.
Section 24A of the Federal Reserve Act (12 U.S.C.
371d) is amended by inserting before the period in that
section the following: ‘‘unless such bank received a com-
posite CAMEL rating of ‘1’ or ‘2’ under the Uniform Fi-
nancial Institutions Rating System (or an equivalent rat-
ing under a comparable rating system) as of its most re-
cent examination and, both before and immediately follow-
ing the investment or loan, is well capitalized (as defined
under section 38 of the Federal Deposit Insurance Act)’’.
SEC. 210. ELIMINATE UNNECESSARY FILING FOR OFFICER
AND DIRECTOR APPOINTMENTS.
Section 32 of the Federal Deposit Insurance Act (12
U.S.C. 1831i) is amended as follows:
(1) in subsection (a)—
(A) by inserting after ‘‘30 days (or such
other period as determined by the agency)’’;
(B) by striking ‘‘if the insured depository
institution or depository institution holding
company’’ and inserting ‘‘if’’;
(C) by striking paragraphs (1) and (2);
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(D) in paragraph (3)—
(i) by inserting ‘‘the insured deposi-
tory institution or depository institution
holding company’’ before ‘‘is not in compli-
ance’’; and
(ii) by striking the period and insert-
ing instead ‘‘; and’’;
(E) by redesignating paragraph (3) as
paragraph (1); and
(F) by adding at the end the following new
paragraph:
‘‘(2) the agency determines, in connection with
its review of the plan required under section 38 or
otherwise, that such prior notice is appropriate.’’;
and
(2) in subsection (b), by striking ‘‘30-day’’ and
inserting in its place ‘‘notice’’.
SEC. 211. STREAMLINING PROCESS FOR DETERMINING
NEW NONBANKING ACTIVITIES.
Section 4(c)(8) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(8)) is amended by striking
‘‘and opportunity for hearing’’.
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Subtitle B—Streamlining of Gov-
ernment 
Regulations; 
Mis-
cellaneous Provisions
SEC. 221. ELIMINATE THE PER-BRANCH CAPITAL REQUIRE-
MENT FOR NATIONAL BANKS AND STATE
MEMBER BANKS.
Section 5155 of the Revised Statutes (12 U.S.C. 36)
is amended by striking subsection (h).
SEC. 222. 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:
‘‘(a) DEFINITIONS.—For purposes of this section, the
term ‘branch’ shall not include the following:
‘‘(1) Automated teller machines.
‘‘(2) A branch acquired through merger, con-
solidation, purchase, assumption, or other method
that is located in a local market area currently
served by another branch of the acquiring institu-
tion.
‘‘(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
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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).
‘‘(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.’’.
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SEC. 223. AMENDMENTS TO THE DEPOSITORY INSTITU-
TIONS MANAGEMENT INTERLOCKS ACT.
(a) DUAL SERVICE IN SAME AREA, TOWN, OR VIL-
LAGE.—Section 203 of the Depository Institution Man-
agement Interlocks Act (12 U.S.C. 3202) is amended—
(1) by inserting ‘‘(a) PROHIBITIONS.—’’ before
‘‘A management official’’; and
(2) by adding after subsection (a) the following
new subsection:
‘‘(b) SMALL MARKET SHARE EXEMPTION.—This sec-
tion shall not prohibit a management official of a deposi-
tory institution or depository holding company from serv-
ing as a management official of another depository institu-
tion or depository holding company not affiliated therewith
if the depository institutions or depository holding compa-
nies with which the management official serves hold, to-
gether with their affiliates, in the aggregate no more than
20 percent of the deposits in each relevant geographic
banking market, as defined by the Board of Governors of
the Federal Reserve System, where offices of the deposi-
tory institutions or depository holding companies or their
affiliates are located.’’.
(b) DUAL SERVICE AMONG LARGER ORGANIZA-
TIONS.—Section 204 of the Depository Institution Man-
agement Interlocks Act (12 U.S.C. 3203) is amended—
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(1) by striking ‘‘$1,000,000,000’’ and inserting
‘‘$2,000,000,000’’; and
(2) by striking ‘‘$500,000,000’’ and inserting
‘‘$1,000,000,000’’; and,
(3) by adding at the end thereof the following:
‘‘The dollar amount in this section shall be adjusted
annually after December 31, 1994, by the annual
percentage increase in the Consumer Price Index for
Urban Wage Earners and Clerical Workers pub-
lished by the Bureau of Labor Statistics.’’.
(c) EXTENSION OF GRANDFATHER EXEMPTION.—
Section 206 of the Depository Institution Management
Interlocks Act (12 U.S.C. 3205) is amended—
(1) in subsection (a), by striking ‘‘for a period
of, subject to the requirements of subsection (c), 20
years after the date of enactment of this title’’;
(2) by inserting a period after ‘‘position’’ the
second place such term appears;
(3) in subsection (b), by striking the second
sentence; and
(4) by striking subsection (c).
(d) RULES OR REGULATIONS.—Section 209 of the
Depository Institution Management Interlocks Act (12
U.S.C. 3207) is amended—
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(1) by striking ‘‘(a) IN GENERAL.—Rules’’ and
inserting ‘‘Rules’’;
(2) by inserting ‘‘, including rules or regula-
tions which permit service by a management official
which would otherwise be prohibited by section 203
or section 204,’’ after ‘‘chapter’’; and
(3) by striking subsections (b) and (c).
SEC. 224. CONSOLIDATION OF APPRAISAL SUBCOMMITTEE.
(a) APPRAISAL SUBCOMMITTEE CONSOLIDATION.—
The Appraisal Subcommittee established under the Fed-
eral Financial Institutions Examination Council Act of
1978 is abolished and its functions shall be consolidated
into the Financial Institutions Examination Council.
(b) CONFORMING AMENDMENTS TO TITLE XI.—
(1) The Federal Financial Institutions Exam-
ination Council Act of 1978 is amended by striking
the following sections:
(A) Section 1102 (12 U.S.C. 3310).
(B) Section 1104 (12 U.S.C. 3333).
(C) Section 1105 (12 U.S.C. 3334).
(D) Section 1106 (12 U.S.C. 3335).
(E) Section 1108 (12 U.S.C. 3337).
(F) Section 1116(e) (12 U.S.C. 3345(e)).
(G) Section 1122(e) (12 U.S.C. 3351(e)).
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(2) Section 1121 of the FIECA of 1978 (12
U.S.C. 3350) is amended—
(A) by striking paragraphs (2) and (8);
(B) 
by 
redesignating 
paragraphs 
(3)
through (7) as paragraphs (2) through (6), re-
spectively; and
(C) 
by 
redesignating 
paragraphs 
(9)
through (10) as paragraphs (7) through (8), re-
spectively.
(c) CONFORMING AMENDMENT.—Section 202(e) of
the National Housing Act (12 U.S.C. 1708(e)) is amended
by striking paragraph (2) and redesignating paragraphs
(3) and (4) as paragraphs (2) through (3).
(d) CONSOLIDATION OF FUNCTIONS TO FFIEC; RE-
DUCTION OF ASSESSMENTS ON APPRAISERS.—
(1) Section 1103 of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (12
U.S.C. 3332) is amended—
(A) by striking ‘‘Appraisal Subcommittee’’
each place it appears and inserting instead ‘‘Fi-
nancial Institutions Examination Council’’;
(B) in paragraph (a)(3), by inserting be-
fore ‘‘maintain’’ the words ‘‘if the Council de-
termines that doing so will further the purposes
of this chapter,’’; and
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(C) by amending paragraph (a)(4) to read
as follows:
‘‘(4) include in its annual report to Congress a
description of how it has performed the functions as-
signed to it under this chapter.’’.
(2) Section 1109 of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (12
U.S.C. 3338) is amended to read as follows:
‘‘SEC. 1109. ROSTER OF STATE CERTIFIED OR LICENSED
APPRAISERS.
‘‘(a) ROSTER; COLLECTION OF FEES.—Each State
with an appraiser certifying and licensing agency whose
certifications and licenses comply with this chapter,
shall—
‘‘(1) upon request of the Federal Financial In-
stitutions Examination Council, transmit to the
Council annually (or at any less frequent interval
specified by the Council) a roster listing individuals
who have received a State certification or license in
accordance with this chapter;
‘‘(2) collect from such individuals who perform
or seek to perform appraisals in federally related
transactions, an annual registry fee, the amount of
which is to be determined by the Council but not to
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exceed $25 per year, to support its activities under
this chapter; and
‘‘(3) transmit all registry fees to the Council on
an annual basis.
‘‘(b) STATUS OF REGISTRY FEES.—Registry fees col-
lected and transmitted to the Council pursuant to this sec-
tion shall not constitute appropriated funds.’’.
(3) Section 1116(e) of the Financial Institu-
tions Reform, Recovery and Enforcement Act of
1989 (12 U.S.C. 3345(e)) is amended by striking
‘‘Appraisal Subcommittee’’ and ‘‘Subcommittee’’ and
inserting instead ‘‘Financial Institutions Examina-
tion Council’’.
(4) Section 1118 of the Financial Institutions
Reform, Recovery and Enforcement of 1989 (12
U.S.C. 3347) is amended by striking ‘‘Appraisal
Subcommittee’’ each place it appears and inserting
instead ‘‘Financial Institutions Examination Coun-
cil’’.
(5) Section 1119 of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (12
U.S.C. 3348) is amended—
(A) by striking ‘‘Subject to the approval of
the Council, the Appraisal Subcommittee’’ and
inserting in its place ‘‘The Council’’;
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(B) by striking ‘‘Appraisal Subcommittee’’
each place it appears and inserting instead ‘‘Fi-
nancial Institutions Examination Council’’.
(6) Section 1120 of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (12
U.S.C. 3349) is amended by striking ‘‘Appraisal
Subcommittee’’ and inserting instead ‘‘Financial In-
stitutions Examination Council’’.
(e) REMISSION OF FUNDS TO THE TREASURY.—All
funds held by, and the right to collect all funds owed to,
the Appraisal Subcommittee on the effective date of this
section shall be transferred to the United States Treasury.
(f) REPAYMENT OF PREPAID REGISTRY FEES.—Be-
fore the effective date specified in subsection (g), the Ap-
praisal Subcommittee shall refund to the States any reg-
istry fees prepaid to the Subcommittee for the period after
December 31, 1995.
(g) EMPLOYEES TRANSFERRED.—
(1) IDENTIFYING
EMPLOYEES
FOR
TRANS-
FER.—
(A) IN GENERAL.—The Financial Institu-
tions Examination Council shall identify those
employees of the Appraisal Subcommittee for
transfer to the Council needed to perform func-
tions transferred from the Subcommittee to the
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Council, in a manner that the Council, in its
sole discretion, deems equitable.
(B) 
IDENTIFIED
EMPLOYEES
TRANS-
FERRED.—All employees of the Appraisal Sub-
committee identified for transfer to the Council
under subparagraph (A) shall be transferred to
the Council for employment on the date set
forth in subsection (h).
(2) PRIORITY OF THIS ACT.—If any protection
provided under this section conflicts with any protec-
tion provided to transferred employees under section
3503 of title 5, United States Code, the provisions
of this section shall control.
(3) RIGHTS OF TRANSFERRED EMPLOYEES.—
(A) COMPARABLE POSITIONS.—Each em-
ployee transferred to the Financial Institutions
Examination Council shall, on the date of
transfer, be appointed to a position under the
compensation system and performance evalua-
tion system of the Council that is comparable in
tenure and grade to that of the position the em-
ployee held on the enactment date of this Act.
(B) PAY.—
(i) IN GENERAL.—Except as provided
in clause (ii), each employee transferred to
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the Financial Institutions Examination
Council under this section shall, during the
1-year period after the date of transfer, re-
ceive pay at a rate not less than the basic
rate of pay that the employee received at
the Appraisal Subcommittee during the 1-
year period immediately before the enact-
ment date of this Act.
(ii) EXCEPTIONS.—Clause (i) does not
limit the right of the Council to reduce a
transferred employee’s rate of basic pay—
(I) for cause;
(II) for unacceptable perform-
ance; or
(III) with the employee’s consent.
(iii) PROTECTION
ONLY
WHILE
EM-
PLOYED.—Subparagraph (B) applies to a
transferred employee only while that em-
ployee remains employed by the Council.
(4) RETIREMENT BENEFITS.—
(A) CONTINUATION OF EXISTING RETIRE-
MENT PLAN.—Except as otherwise permitted by
law, each employee who transfers to the Finan-
cial Institutions Examination Council under
this section shall remain enrolled in the retire-
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ment plan (and any associated thrift savings
plan) in which he or she was enrolled on the
day before the date of transfer while he or she
remains employed by the Council.
(B) 
EMPLOYER’S
CONTRIBUTION.—The
Financial Institutions Examination Council
shall pay any employer contributions to the re-
tirement plan in which each transferred em-
ployee is subject during his or her period of
service at the Council, as required under that
plan.
(5) NO PRIVATE RIGHT OF ACTION.—This sec-
tion does not provide any employee transferred to
the Financial Institutions Examination Council
under this section with any right of action to require
the Council, or any officer, employee, agent, or ad-
ministrator thereof, to take any action under this
section.
(h) EFFECTIVE DATE.—This section shall take effect
90 days from enactment, except that, unless otherwise
provided, subsections (f) and (g) shall take effect imme-
diately.
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SEC. 225. ELIMINATE UNNECESSARY AND DUPLICATIVE
RECORDKEEPING AND REPORTING REQUIRE-
MENTS RELATING TO LOANS TO EXECUTIVE
OFFICERS AND PERMIT PARTICIPATION IN
EMPLOYEE BENEFIT PLANS.
(a) AMENDMENTS TO SECTION 22(h) OF THE FED-
ERAL RESERVE ACT.—Section 22(h) of the Federal Re-
serve Act (12 U.S.C. 375b(2)) is amended—
(1) EMPLOYEE BENEFIT PLANS.—In paragraph
(2)—
(A) by renumbering subparagraphs (A)
and (C) as clauses (i) through (iii) respectively;
(B) by striking ‘‘(2) Preferential terms
prohibited’’ and inserting in its place:
‘‘(2) PREFERENTIAL TERMS PROHIBITED.—
‘‘(A) IN GENERAL; and
(C) by inserting at the end a new subpara-
graph (B) to read as follows:
‘‘(B) EXCEPTION.—Nothing in this para-
graph shall prohibit extensions of credit made
pursuant to a benefit or compensation program
widely available to employees of the member
bank.’’;
(2) EXCEPTION FOR EXTENSIONS OF CREDIT
TO
EXECUTIVE
OFFICERS
AND
DIRECTORS
OF
NONBANK AFFILIATES.—In subsection (h)(8)(B) by
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striking the phrase’’, except as that subparagraph
makes applicable paragraph (2),’’; and
(3) 
RECORDKEEPING
REQUIREMENTS.—In
paragraph (10), by adding at the end the following:
‘‘The Board shall specify by regulation the record-
keeping required of member banks to ensure compli-
ance with this section. Compliance with the record-
keeping requirements adopted pursuant to this para-
graph shall satisfy the audit requirement of section
36(e) of the Federal Deposit Insurance Act, to the
extent that its requirements are applicable to this
section.’’.
(b) REPORTING REQUIREMENTS.—
(1) UNNECESSARY REPORTS.—Section 22(g) of
the Federal Reserve Act is amended by deleting
paragraphs (6) and (9) and in their entirety and re-
numbering paragraphs (7), (8), and (10) as para-
graphs (6), (7), and (8), respectively.
(2) UNNECESSARY REPORTS.—Section 7(k) of
the Federal Deposit Insurance Act (12 U.S.C. 1817)
is amended to read as follows:
‘‘(k) RESERVED.’’.
(3) UNNECESSARY REPORTS REGARDING LOANS
FROM CORRESPONDENT BANKS.—Section 106(b)(2)
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of the Bank Holding Company Act Amendments of
1970 (12 U.S.C. 1972(2)) is amended—
(A) by deleting subparagraph (G) in its en-
tirety; and
(B) by redesignating subparagraphs (H)
and (I) as subparagraphs (G) and (H), respec-
tively.
SEC. 
226. 
EXPANDED 
REGULATORY 
DISCRETION 
FOR
SMALL BANK EXAMINATIONS.
(a) TIME PERIOD DISCRETION.—Section 10(d)(4) of
the Federal Deposit Insurance Act (12 U.S.C. 1820(d)(4))
is amended by—
(1) in the title, by striking ‘‘18-MONTH RULE’’
and inserting ‘‘24-MONTH RULE’’; and
(2) in the first sentence, by striking ‘‘18-
month’’ and inserting ‘‘24-month’’.
(b) SMALL
BANK
SIZE
DISCRETION.—Section
10(d)(8) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)(8)) is amended by striking ‘‘$175,000,000’’ and
inserting ‘‘$250,000,000’’.
(c) INFLATION ADJUSTMENT.—Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is
amended by adding at the end thereof the following new
paragraph:
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‘‘(9) The dollar amount in this section shall be
adjusted annually after December 31, 1994, by the
annual percentage increase in the Consumer Price
Index for Urban Wage Earners and Clerical Work-
ers published by the Bureau of Labor Statistics.’’.
SEC. 227. COST REIMBURSEMENT.
Section 1115 of the Right to Financial Privacy Act
(12 U.S.C. 3415) is amended by inserting ‘‘(including cor-
porate customers)’’ after ‘‘pertaining to a customer’’.
SEC. 228. IDENTIFICATION OF NONBANK FINANCIAL INSTI-
TUTION CUSTOMERS.
(a) IN GENERAL.—Subchapter 2 of chapter 53 of
title 31, United States Code, is amended by striking sec-
tion 5327.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 5321(a) of title 31, United States Code, is amend-
ed by striking paragraph (7).
(c) CLERICAL AMENDMENT.—The table of sections
for subchapter 2 of chapter 53 of title 31, United States
Code, is amended by striking the item relating to section
5327.
SEC. 229. PAPERWORK REDUCTION REVIEW.
Not later than 180 days after the date of enactment
of this Act, each appropriate Federal banking agency, in
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consultation with insured depository institutions and other
interested parties, shall—
(1) review the extent to which current regula-
tions require insured depository institutions to
produce unnecessary internal written policies; and
(2) 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. 230. REPEAL OF UNNECESSARY REPORTING REQUIRE-
MENTS.
Sections 122 and 477 of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991 (Public Law
102–242) are hereby repealed.
SEC. 231. DAILY CONFIRMATIONS FOR HOLD-IN-CUSTODY
REPURCHASE TRANSACTIONS.
Within one year after the date of enactment of this
section, the Secretary of the Treasury shall revise the reg-
ulation under section 15C of the Securities Exchange Act
of 1934 relating to the obligations of financial institutions
holding custody of securities subject to a repurchase
agreement to confirm, daily and in writing, the securities
that are subject to such repurchase agreement. Such revi-
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sion shall permit the counterparty to such agreement to
waive in writing the right to obtain such daily written con-
firmation if the counterparty has received a disclosure, in
a form prescribed by the Secretary, that adequately in-
forms the counterparty of the benefits of receiving such
daily written confirmations.
SEC. 232. REQUIRED REGULATORY REVIEW OF REGULA-
TIONS.
(a) IN GENERAL.—The Financial Institutions Exam-
ination Council shall, within every 10-year period, conduct
a review of all of the regulations issued pursuant to its
or its representatives’ authority to identify outdated or
otherwise unnecessary regulatory requirements imposed
upon insured depository institutions.
(b) PROCESS.—In conducting the review required
under subsection (a), the Council shall—
(1) categorize such regulations by type (such as
consumer regulations, safety and soundness regula-
tions, or such other designation as determined by
the Council); and
(2) at regular intervals, provide notice and so-
licit public comment on a particular category or cat-
egories of regulations, requesting commentators to
identify areas of such regulations considered out-
dated, unnecessary or unduly burdensome.
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The Council shall, over a 10-year period, ensure that all
categories of regulations have been set out for notice and
comment.
(c) REGULATORY RESPONSE.—The Council shall—
(1) publish in the Federal Register a summary
of the comments received pursuant to this section,
identifying significant issues raised and providing
comment on such issues; and
(2) eliminate unnecessary regulations wherever
appropriate.
(d) REPORT TO CONGRESS.—The Council shall, with-
in 30 days of publishing the summary required under sub-
section (c)(1), provide a report to the Congress summariz-
ing any significant issues raised during such comment pe-
riod, the relative merits of such issues, and whether the
appropriate Federal banking agency involved can address
the regulatory burdens associated with such issues by reg-
ulation, or whether such concerns can only be addressed
by legislation.
(e) DEFINITIONS.—For purposes of this section, the
terms ‘‘insured depository institution’’ and ‘‘appropriate
Federal banking agency’’ have the same meaning as in
section 3 of the Federal Deposit Insurance Act.
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SEC. 233. COUNTRY RISK REQUIREMENTS.
(a) Section 905 of the International Lending Super-
vision Act (12 U.S.C. 3904) is amended—
(1) in subsection (a)(1), by striking ‘‘shall’’ and
inserting ‘‘may’’; and
(2) in subsection (b), by striking ‘‘shall’’ and
inserting ‘‘may’’.
(b) Section 905A of the International Lending Super-
vision Act (12 U.S.C. 3904a) is repealed.
SEC. 234. 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) 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), 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.’’.
(3) 
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
public.’’.
SEC. 235. DUE PROCESS PROTECTIONS.
(a) ATTACHMENT OF ASSETS.—
(1) INSURED DEPOSITORY INSTITUTIONS.—
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(A) Section 11(d)(19) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(d)(19)) is
amended—
(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
Insurance 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 withdraw-
ing, transferring, removing, dissipating, or dis-
posing 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:
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‘‘(B) STANDARD.—Rule 65 of the Federal
Rules of Civil Procedure shall apply with re-
spect to any proceeding under this paragraph.’’.
(2) CREDIT UNIONS.—
(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 withdraw-
ing, transferring, removing, dissipating, or dis-
posing of any funds, assets or other property
where injury, loss, or damage to such property
is irreparable and immediate; and’’.