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sured depository institutions that are subsidiaries of
the same depository institution holding company if—
‘‘(A) the responsible agency would not be
prohibited from approving the transaction under
section 44, if applicable;
‘‘(B) the acquiring, assuming, or resulting
institution complies with all applicable provi-
sions of section 44, if any, as if the merger, con-
solidation, or acquisition were approved under
this subsection;
‘‘(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; and
‘‘(D) after receiving such notice, the agency
does not require the institution to submit an ap-
plication with respect to such transaction and so
notifies the institution.’’.
(b) NATIONAL BANK CONSOLIDATION AND MERGER
ACT.—
(1) CONSOLIDATIONS.—Section 2 of the National
Bank Consolidation and Merger Act (12 U.S.C. 215)
is amended—
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(A) in subsection (a), by adding at the end
the following new sentence:
‘‘No approval by the Comptroller of the Currency is re-
quired under this subsection for a transaction which in-
volves the consolidation of banks that, at the time of the
consolidation, are all subsidiaries (as defined in section 3
of the Federal Deposit Insurance Act) of the same com-
pany.’’; and
(B) in subsection (b)—
(i) by striking ‘‘, and thereafter the
consolidation shall be approved by the
Comptroller’’; and
(ii) by striking ‘‘when such consolida-
tion is approved by the Comptroller’’.
(2) MERGERS.—Section 3 of the National Bank
Consolidation and Merger Act (12 U.S.C. 215a) is
amended—
(A) in subsection (a), by adding at the end
the following new sentence:
‘‘No approval by the Comptroller of the Currency is re-
quired under this subsection for a transaction which in-
volves the merger of banks that, at the time of the merger,
are all subsidiaries (as defined in section 3 of the Federal
Deposit Insurance Act) of the same company.’’; and
(B) in subsection (b)—
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(i) by striking ‘‘, and thereafter the
merger shall be approved by the Comptrol-
ler’’; and
(ii) by striking ‘‘when such merger
shall be approved by the Comptroller’’.
SEC. 204. ELIMINATE REDUNDANT APPROVAL REQUIRE-
MENT FOR OAKAR TRANSACTIONS.
(a) IN GENERAL.—Section 5(d)(3) of the Federal De-
posit 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:
‘‘(iv) A transaction shall not be au-
thorized under this paragraph unless the ac-
quiring, assuming, or resulting depository
institution will meet all applicable capital
requirements upon consummation of the
transaction.’’;
(B) by striking clauses (i) and (ii); and
(C) by redesignating clauses (iii) and (iv)
(as amended by subparagraph (A) of this para-
graph) as clauses (i) and (ii), respectively; and
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(3) by striking subparagraph (G) and redesig-
nating the subsequent subparagraphs accordingly.
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 5156A(b)(1) of the Revised Statutes of the United
States (12 U.S.C. 215c(b)(1)) is amended by striking ‘‘sec-
tion 5(d)(3) of the Federal Deposit Insurance Act or’’.
(c) CLERICAL AMENDMENT.—The heading for section
5(d)(3)(E) of the Federal Deposit Insurance Act (12 U.S.C.
1815(d)(3)(E)) is amended by striking ‘‘FOR APPROVAL,
GENERALLY’’.
SEC. 205. ELIMINATION OF DUPLICATIVE REQUIREMENTS
IMPOSED UPON BANK HOLDING COMPANIES
AND OTHER REGULATORY RELIEF UNDER
THE HOME OWNERS’ LOAN ACT.
(a) EXEMPTION FOR BANK HOLDING COMPANIES.—
Section 10 of the Home Owners’ Loan Act (12 U.S.C.
1467a) is amended by adding at the end the following new
subsection:
‘‘(t) EXEMPTION FOR BANK HOLDING COMPANIES.—
This section shall not apply to a bank holding company
that is subject to the Bank Holding Company Act of 1956
or any company controlled by such bank holding company
(other than a savings association).’’.
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(b) DEFINITION OF SAVINGS AND LOAN HOLDING COM-
PANY.—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:
‘‘(D) SAVINGS
AND
LOAN
HOLDING
COM-
PANY.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), the term ‘savings and loan
holding company’ means any company
which directly or indirectly controls a sav-
ings association or controls any other com-
pany which is a savings and loan holding
company.
‘‘(ii) EXCEPTION FOR BANK HOLDING
COMPANY.—The term ‘savings and loan
holding company’ does not include any
company which is registered under, and
subject to, the provisions of the Bank Hold-
ing Company Act of 1956, or any company
directly or indirectly controlled by such
company.’’.
(c) AMENDMENTS TO THE BANK HOLDING COMPANY
ACT OF 1956.—Section 4(i) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(i)) is amended by adding at
the end the following new paragraphs:
‘‘(4) SOLICITATION OF VIEWS.—
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tion report, additional examination materials, or
supervisory information relating to any bank
holding company which directly or indirectly
controls a savings association.
‘‘(6) COORDINATION
OF
ENFORCEMENT
EF-
FORTS.—The Board and the Director shall cooperate
in any enforcement action against any bank holding
company which controls a savings association, if the
relevant conduct involves such association.
‘‘(7) DIRECTOR DEFINED.—For purposes of this
section, the term ‘Director’ means the Director of the
Office of Thrift Supervision.’’.
(d) ALTERNATIVE TEST.—Section 10(m) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(m)) is amended—
(1) in paragraph (1), by striking ‘‘(2) and (7)’’
and inserting ‘‘(2), (7), and (8)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(8) ALTERNATIVE TEST.—Any savings associa-
tion which meets the requirements set forth in section
7701(a)(19)(C) of the Internal Revenue Code of 1986
shall be deemed to be a qualified thrift lender and
any qualified thrift lender shall be deemed to meet the
requirements of such section.’’.
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SEC. 206. ELIMINATE REQUIREMENT THAT APPROVAL BE
OBTAINED FOR DIVESTITURES.
Section 2(g) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(g)) is amended—
(1) by striking paragraph (3);
(2) by inserting ‘‘and’’ after the semicolon at the
end of 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.—Section
5155(i) of the Revised Statutes (12 U.S.C. 36(i)) is amend-
ed—
(1) by striking ‘‘(i) No branch’’ and inserting
‘‘(i) RELOCATION.—
‘‘(1) APPROVAL REQUIRED.—Except as provided
in paragraph (2), no branch’’; and
(2) by adding at the end the following new para-
graphs:
‘‘(2) NO
APPROVAL
REQUIRED
FOR
CERTAIN
BRANCHES.—Notwithstanding this subsection or sub-
section (b) or (c), the consent and approval of the
Comptroller of the Currency shall not be required for
a national bank to establish and operate, or to retain
and operate, a branch or seasonal agency if—
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‘‘(A) the bank is well capitalized (as defined
in section 38 of the Federal Deposit Insurance
Act and regulations prescribed by the Comptrol-
ler of the Currency under such section);
‘‘(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;
‘‘(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 of 1977; and
‘‘(D) the Comptroller of the Currency is oth-
erwise authorized to grant approval under this
section to such bank to establish and operate, or
to retain and operate, a branch or seasonal agen-
cy at the proposed location.
‘‘(3) CERTAIN BRANCHES DEEMED TO HAVE AP-
PROVED APPLICATIONS.—A branch or seasonal agency
established by a national bank under paragraph (2)
shall be deemed to have been established and operated
pursuant to an application approved under this sec-
tion.’’.
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(b) STATE MEMBER BANK BRANCH APPLICATIONS.—
The third undesignated paragraph of section 9 of the Fed-
eral Reserve Act (12 U.S.C. 321) is amended by adding at
the end the following: ‘‘Notwithstanding the preceding 2
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-capital-
ized (as defined in section 38 of the Federal De-
posit 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
system);
‘‘(C) the State member bank did not receive
a ‘needs to improve’ or ‘substantial noncompli-
ance’ composite rating at its most recent exam-
ination under the Community Reinvestment Act
of 1977; and
‘‘(D) the Board is otherwise authorized to
grant approval under this section to such State
member bank to establish and operate a branch
or seasonal agency at the proposed location.
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A branch or seasonal agency established by a State member
bank under the previous sentence shall be deemed to have
been established and operated pursuant to an application
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 consent
of the Corporation shall not be required for a State
nonmember insured bank to establish and operate any
domestic branch if—
‘‘(A) the bank is well-capitalized (as defined
in section 38 and regulations prescribed by the
Corporation under such section);
‘‘(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;
‘‘(C) the bank did not receive a ‘needs to
improve’ or ‘substantial noncompliance’ compos-
ite rating as result of the bank’s most recent ex-
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amination under the Community Reinvestment
Act of 1977; and
‘‘(D) the Corporation is otherwise author-
ized to give consent under this section to such
bank to establish and operate a domestic branch
at the proposed location.
‘‘(6) APPROVAL GRANTED.—A branch established
by a State member bank under paragraph (5) shall
be deemed to have been established and operated pur-
suant to an application approved under this sec-
tion.’’.
SEC. 208. ELIMINATE BRANCH APPLICATIONS AND RE-
QUIREMENTS FOR ATMs AND SIMILAR FACILI-
TIES.
(a) DEFINITION OF BRANCH UNDER NATIONAL BANK
ACT.—Section 5155(j) of the Revised Statutes (12 U.S.C.
36(j)) is amended—
(1) by striking ‘‘(j) The term’’ and inserting ‘‘(j)
BRANCH.—
‘‘(1) IN GENERAL.—The term’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) CERTAIN PROPRIETARY ATMS AND REMOTE
SERVICING UNITS.—The term ‘branch’ does not in-
clude any automated teller machine or remote service
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unit which is owned and operated by a depository in-
stitution—
‘‘(A) primarily for the benefit of the institu-
tion and the affiliates of the institution; and
‘‘(B) which could operate a branch at the
location of such machine or unit.’’.
(b) DEFINITION OF BRANCH UNDER FEDERAL DE-
POSIT INSURANCE ACT.—Section 3(o) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(o)) is amended—
(1) by striking ‘‘(o) The term’’ and inserting
‘‘(o) DEFINITIONS RELATING TO BRANCHES.—
‘‘(1) DOMESTIC BRANCH.—
‘‘(A) IN GENERAL.—The term’’; and
(2) by striking ‘‘lent; and the term’’ and insert-
ing ‘‘lent.
‘‘(B) CERTAIN PROPRIETARY ATMS AND RE-
MOTE
SERVICING
UNITS.—The term ‘domestic
branch’ does not include any automated teller
machine or remote service unit which is owned
and operated by a depository institution—
‘‘(i) primarily for the benefit of the in-
stitution and the affiliates of the institu-
tion; and
‘‘(ii) which could operate a branch at
the location of such machine or unit.
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‘‘(2) FOREIGN BRANCH.—The term’’.
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 sec-
tion the following: ‘‘or, in the case of a bank which 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 and, both before and immediately fol-
lowing the investment or loan, is well capitalized (as de-
fined under section 38 of the Federal Deposit Insurance
Act), the amount which is equal to 150 percent of the cap-
ital stock and surplus of such bank’’.
SEC. 210. ELIMINATE UNNECESSARY FILING FOR OFFICER
AND DIRECTOR APPOINTMENTS.
Section 32(d) of the Federal Deposit Insurance Act (12
U.S.C. 1831i(d)) is amended to read as follows:
‘‘(d) ADDITIONAL INFORMATION.—
‘‘(1) IN GENERAL.—Any notice submitted to an
appropriate Federal banking agency with respect to
an individual by any insured depository institution
or depository institution holding company pursuant
to subsection (a) shall include—
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‘‘(A) the information described in section
7(j)(6)(A) about the individual; and
‘‘(B) such other information as the agency
may prescribe by regulation.
‘‘(2) WAIVER.—An appropriate Federal banking
agency may waive the requirement of this section by
regulation or on a case-by-case basis consistent with
safety and soundness.’’.
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—
(1) by striking ‘‘and opportunity for hearing’’;
and
(2) by striking ‘‘approval by the Board prior to
January 1, 1971.’’ and inserting the following: ‘‘ap-
proval by the Board prior to January 1, 1971, except
that, after March 30, 1997, it shall be closely related
to banking or managing or controlling banks and a
proper incident thereto to provide insurance as a
principal, agent, or broker in any State, in full com-
pliance with the laws and regulations of such State
that apply uniformly to each type of insurance license
or authorization in that State, including laws that
restrict a bank in that State from having an affiliate,
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agent, or employee in that State licensed to provide
insurance as principal, agent, or broker. The Board
shall prescribe regulations concerning insurance af-
filiations that provide equivalent treatment for all
stock and mutual fund insurance companies that con-
trol or are affiliated with a bank, and fully accommo-
date and are consistent with State law.’’.
SEC. 212. DISPOSITION OF FORECLOSED ASSETS.
Section 4(c)(2) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(c)(2)) is amended—
(1) by striking ‘‘for not more than one year at
a time’’; and
(2) by striking ‘‘but no such extensions shall ex-
tend beyond a date five years’’ and inserting ‘‘and, in
the case of a bank holding company which has not
disposed of such shares within 5 years of the date
such shares were acquired, the Board may, upon the
application of such company, grant additional ex-
emptions if, in the Board’s judgment, such extension
would not be detrimental to the public interest and ei-
ther the bank holding company has made a good faith
attempt to dispose of such shares during such 5-year
period or the disposal of such shares during such 5-
year period would have been detrimental to the com-
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pany, but the aggregate duration of such extensions
shall not extend 10 years’’.
SEC. 213. INCREASE IN CERTAIN CREDIT UNION LOAN CEIL-
INGS.
Section 107(5)(A) of the Federal Credit Union Act (12
U.S.C. 1757(5)(A)) is amended—
(1) in clause (iv), by striking ‘‘$10,000’’ and in-
serting ‘‘$50,000’’; and
(2) in clause (v), by striking ‘‘$10,000’’ and in-
serting ‘‘$50,000’’.
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—
(1) by striking subsection (h); and
(2) by redesignating subsections (i) (as amended
by section 207(a) of this Act), (j) (as amended by sec-
tion 208(a) of this Act), (k), and (l) as subsections
(h), (i), (j), and (k), respectively.
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SEC. 222. BRANCH CLOSURES.
(a) IN GENERAL.—Section 42 of the Federal Deposit
Insurance Act (12 U.S.C. 1831r–1) is amended by adding
at the end the following new subsection:
‘‘(e) SCOPE OF APPLICATION.—
‘‘(1) IN GENERAL.—This section shall not apply
with respect to—
‘‘(A) an automated teller machine;
‘‘(B) a branch which—
‘‘(i) has been acquired through merger,
consolidation, purchase, assumption, or
other method; and
‘‘(ii) is located—
‘‘(I) within 2.5 miles of another
branch of the acquiring institution; or
‘‘(II) within a neighborhood cur-
rently being served by another branch
of the acquiring institution,
if such other branch of the acquiring institution
is expected to continue to provide banking serv-
ices to substantially all of the customers cur-
rently served by the branch acquired;
‘‘(C) a branch which is closing and reopen-
ing at a location which is—
‘‘(i) within 2.5 miles of the location of
the branch being closed; or
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‘‘(ii) within the same neighborhood as
the branch being closed,
if the branch at the new location is expected to
continue to provide banking services to substan-
tially all of the customers served by the branch
at the former location;
‘‘(D) a branch that is closed in connection
with—
‘‘(i) an emergency acquisition under—
‘‘(I) section 11(n); or
‘‘(II) subsections (f) or (k) of sec-
tion 13; or
‘‘(ii) any assistance provided by the
Corporation under section 13(c); and
‘‘(E) any other branch closure whose exemp-
tion from the notice requirements of this section
would not produce a result inconsistent with the
purposes of this section.
‘‘(2) REGULATIONS.—The appropriate Federal
banking agency shall, by regulation, determine the
circumstances under which any exemption under
paragraph(1)(E) may be granted.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply as if such amendment had been in-
cluded in section 42 of the Federal Deposit Insurance Act
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as of the date of the enactment of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991.
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 Manage-
ment 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.—
‘‘(1) IN GENERAL.—This section shall not be con-
strued as prohibiting a management official of a de-
pository institution or depository holding company
from serving as a management official of another de-
pository institution or depository holding company
not affiliated with such institution or holding com-
pany if the depository institutions or depository hold-
ing companies with which the management official
serves hold, together with all the affiliates of such in-
stitutions or holding companies, in the aggregate no
more that 20 percent of the deposits in each relevant
geographic banking market where offices of the deposi-
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tory institutions or depository holding companies or
their affiliates are located.
‘‘(2) RELEVANT GEOGRAPHIC BANKING MARKET
DEFINED.—For purposes of paragraph (1), the term
‘relevant geographic banking market’ means—
‘‘(A) the area defined by the boundaries
identified by the Board of Governors of the Fed-
eral Reserve System;
‘‘(B) if the Board has not defined such
boundaries, the area defined by the boundaries of
the Ranally Metropolitan Area in which the of-
fice of the depository institution or the deposi-
tory institution holding company is located; and
‘‘(C) if the office of such institution or com-
pany is not located within a Ranally Metropoli-
tan Area, the area defined by the county (or an
equivalent area of general local government) in
which such office is located.’’.
(b) DUAL
SERVICE
AMONG
LARGER
ORGANIZA-
TIONS.—Section 204 of the Depository Institution Manage-
ment Interlocks Act (12 U.S.C. 3203) is amended to read
as follows:
‘‘SEC. 204. DUAL SERVICE AMONG LARGER ORGANIZATIONS.
‘‘(a) IN GENERAL.—If a depository institution, deposi-
tory institution holding company, or depository institution
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affiliate of any such institution or company has total assets
exceeding $2,500,000,000, a management official of such in-
stitution, company, or affiliate may not serve as a manage-
ment official of any other depository institution, depository
institution holding company, or depository institution affil-
iate of any such institution or company which—
‘‘(1) is not an affiliate of the institution, com-
pany, or affiliate of which such person is a manage-
ment official; and
‘‘(2) has total assets exceeding $1,500,000,000.
‘‘(b) CPI ADJUSTMENTS.—The dollar amounts 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.—Sec-
tion 206 of the Depository Institution Management Inter-
locks 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) in subsection (b), by striking the 2d sentence;
and
(3) by striking subsection (c).
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(d) RULES OR REGULATIONS.—Section 209 of the De-
pository Institution Management Interlocks Act (12 U.S.C.
3207) is amended—
(1) by striking ‘‘(a) IN GENERAL.—Rules’’ and
inserting ‘‘Rules’’;
(2) by inserting ‘‘, including rules or regulations
which permit service by a management official which
would otherwise be prohibited by section 203 or sec-
tion 204,’’ after ‘‘title’’; and
(3) by striking subsections (b) and (c).
SEC. 224. ACCELERATION OF REPAYMENT TO TREASURY.
The Appraisal Subcommittee of the Financial Institu-
tions Examination Council shall repay to the Secretary of
the Treasury the funds specified in section 1108 of Finan-
cial Institutions Reform, Recovery, and Enforcement Act
of 1989 by not later than September 30, 1998, and the Sec-
retary shall deposit such funds in the general fund of the
Treasury.
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 FEDERAL
RESERVE ACT.—
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(1) 
EMPLOYEE
BENEFIT
PLANS.—Section
22(h)(2) of the Federal Reserve Act (12 U.S.C.
375b(2)) is amended—
(A) by redesignating subparagraphs (A),
(B), and (C) as clauses (i), (ii), and (iii), respec-
tively, and moving the left margins of such
clauses 2 ems to the right;
(B) by striking ‘‘(2) PREFERENTIAL TERMS
PROHIBITED.—A member bank’’ and inserting
‘‘(2) PREFERENTIAL TERMS PROHIBITED.—
‘‘(A) IN GENERAL.—A member bank’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(B) EXCEPTION.—No provision of this
paragraph shall be construed as prohibiting ex-
tensions of credit that constitute a benefit or
compensation program that is widely available
to and used by employees of the member bank,
including employees who are not executive offi-
cers of the bank.’’.
(2) EXCEPTION FOR EXTENSIONS OF CREDIT TO
EXECUTIVE OFFICERS AND DIRECTORS OF NONBANK
AFFILIATES.—Section 22(h)(8)(B) of the Federal Re-
serve Act (12 U.S.C. 375b(8)(B)) is amended to read
as follows:
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‘‘(B) EXCEPTION.—The Board may, by reg-
ulation, make exceptions to subparagraph (A) for
an executive officer or director of a subsidiary of
a company that controls the member bank if—
‘‘(i) the executive officer or director
does not have authority to participate, and
does not participate, in major policymaking
functions of the member bank; and
‘‘(ii) the assets of such subsidiary do
not exceed 10 percent of the consolidated as-
sets of a company that controls the member
bank and such subsidiary (and is not con-
trolled by any other company).’’.
(3) RECORDKEEPING
REQUIREMENTS.—Section
22(h)(10) of the Federal Reserve Act (12 U.S.C.
375b(10)) is amended by adding at the end the follow-
ing: ‘‘The Board shall specify by regulation the rec-
ordkeeping required of member banks to ensure com-
pliance with this section.’’.
(b) REPORTING REQUIREMENTS.—
(1) UNNECESSARY REPORTS.—Section 22(g) of
the Federal Reserve Act (12 U.S.C. 375a) is amend-
ed—
(A) by striking paragraphs (6) and (9); and
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(B) by redesignating paragraphs (7), (8),
and (10) as paragraphs (8), (9), and (10), re-
spectively.
(2) UNNECESSARY REPORTS.—Section 7 of the
Federal Deposit Insurance Act (12 U.S.C. 1817) is
amended by striking subsection (k).
(3) UNNECESSARY REPORTS REGARDING LOANS
FROM CORRESPONDENT BANKS.—Section 106(b)(2) of
the Bank Holding Company Act Amendments of 1970
(12 U.S.C. 1972(2)) is amended—
(A) by striking subparagraph (G); and
(B) by redesignating subparagraphs (H)
and (I) as subparagraphs (G) and (H), respec-
tively.
(c) AMENDMENTS RELATING TO LOANS TO EXECUTIVE
OFFICERS.—Section 22(g) of the Federal Reserve Act (12
U.S.C. 375a) (as amended by subsection (a) of this section)
is amended—
(1) in paragraph (1)(D), by striking ‘‘of any one
of the three categories respectively referred to in para-
graphs (2), (3), and (4)’’ and inserting ‘‘of any cat-
egory referred to in paragraph (2), (3), (4), (5), or
(6)’’;
(2) by redesignating paragraphs (4) and (5) as
paragraphs (6) and (7), respectively;
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(3) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) HOME EQUITY LINES OF CREDIT.—A mem-
ber bank may make a revolving open-end extension of
credit to any executive officer of the bank if the cred-
it—
‘‘(A) does not exceed $100,000; and
‘‘(B) is secured by a dwelling that is owned
by such officer and used by the officer as a resi-
dence.
‘‘(5) LOANS
SECURED
BY
MARKETABLE
AS-
SETS.—A member bank may extend credit to any ex-
ecutive officer of the bank if the credit is secured by
readily marketable assets of a value not exceeding
such amount as the Board may establish by regula-
tion.’’; and
(4) in paragraph (7) (as so redesignated by
paragraph (2) of this subsection) by striking ‘‘(4)’’
each place such term appears and inserting ‘‘(6)’’.
SEC. 226. EXPANDED REGULATORY DISCRETION FOR SMALL
BANK EXAMINATIONS.
(a) SMALL BANK SIZE DISCRETION.—Section 10(d) of
the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is
amended—
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(1) by redesignating paragraph (9) as para-
graph (10);
(2) by redesignating the 2d of the 2 paragraphs
designated as paragraph (8) as paragraph (9); and
(3) in paragraph (9) (as so redesignated), by
striking 
‘‘$175,000,000’’ 
and 
inserting
‘‘$250,000,000’’.
(b) INFLATION ADJUSTMENT.—Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is
amended by inserting after paragraph (10) (as so redesig-
nated in subsection (a)(1) of this section) the following new
paragraph:
‘‘(11) ANNUAL
CPI
ADJUSTMENT.—The dollar
amount in this section shall be adjusted annually
after December 31, 1994, by the annual percentage in-
crease in the Consumer Price Index for Urban Wage
Earners and Clerical Workers published by the Bu-
reau of Labor Statistics.’’.
(c) COORDINATED FEDERAL AND STATE EXAMINA-
TIONS.—The Federal banking agencies (as defined in sec-
tion 3 of the Federal Deposit Insurance Act) shall submit
semiannual reports to the Congress on the progress made
by such agencies in implementing the requirements of sec-
tion 10(d)(6) of the Federal Deposit Insurance Act until
such agencies submit a final report that—
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(1) the examination system provided for in such
section is in place; and
(2) such system provides for full coordination of
examinations of State depository institutions with
State bank supervisors.
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 FOREIGN NONBANK FINAN-
CIAL INSTITUTION CUSTOMERS.
(a) IN GENERAL.—Section 5327(a)(1) of title 31,
United States Code, is amended to read as follows:
‘‘(1) is a financial institution (other than a for-
eign bank (as defined in section 101(b) of the Inter-
national Banking Act of 1978)) which is a foreign
person; and’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—The
heading for section 5327 of title 31, United States Code,
is amended by inserting ‘‘FOREIGN
NONBANK’’ after
‘‘OF’’.
(c) CLERICAL AMENDMENT.—The table of sections for
chapter 53 of title 31, United States Code, is amended by
striking the item relating to section 5327 and inserting the
following new item:
‘‘5327. Identification of foreign nonbank financial institutions.’’.
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SEC. 229. PAPERWORK REDUCTION REVIEW.
Not later than 180 days after the date of enactment
of this Act, each appropriate Federal banking agency and
the National Credit Union Administration, in consultation
with insured depository institutions, insured credit unions,
and other interested parties, shall—
(1) review the extent to which current regula-
tions require insured depository institutions and in-
sured credit unions to produce unnecessary internal
written policies; and
(2) eliminate such requirements, where appro-
priate.
For purposes of this section, the terms ‘‘insured depository
institution’’ and ‘‘appropriate Federal banking agency’’
have the same meanings as in section 3 of the Federal De-
posit Insurance Act and the term ‘‘insured credit union’’
has the same meaning as in section 101(7) of the Federal
Credit Union Act.
SEC. 230. DAILY CONFIRMATIONS FOR HOLD-IN-CUSTODY
REPURCHASE TRANSACTIONS.
Before the end of the 1-year period beginning on the
date of the enactment of this Act, the Secretary of the Treas-
ury shall revise the regulation under section 15C of the Se-
curities Exchange Act of 1934 relating to the obligations
of financial institutions and of brokers and dealer registered
under such Act holding custody of securities subject to a
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repurchase agreement to confirm, daily and in writing, the
securities that are subject to such repurchase agreement.
Such revision shall permit the counterparty to such agree-
ment to waive in writing the right to obtain such daily
written confirmation if the counterparty has received a
clear and conspicuous disclosure before entering into any
side agreement, in a form prescribed by the Secretary, that
adequately informs the counterparty of the benefits of re-
ceiving such daily written confirmations.
SEC. 231. REQUIRED REGULATORY REVIEW OF REGULA-
TIONS.
(a) IN GENERAL.—Not less frequently than once every
10 years, the Financial Institutions Examination Council
(hereafter in this section referred to as the ‘‘Council’’) and
each appropriate Federal banking agency (as defined in sec-
tion 3(q) of the Federal Deposit Insurance Act) represented
on the Council shall conduct a review of all regulations pre-
scribed by the Council or by any such agency, respectively,
in order to identify outdated or otherwise unnecessary regu-
latory requirements imposed upon insured depository insti-
tutions.
(b) PROCESS.—In conducting the review under sub-
section (a), the Council or the appropriate Federal banking
agency shall—
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(1) categorize the regulations by type (such as
consumer regulations, safety and soundness regula-
tions, or such other designations 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 the regulations that are outdated,
unnecessary, or unduly burdensome.
(c) COMPLETE REVIEW.—The Council or the appro-
priate Federal banking agency shall ensure that the notice
and comment period described in subsection (b)(2) is con-
ducted with respect to all regulations described in subsection
(a) not less frequently than once every 10 years.
(d) REGULATORY RESPONSE.—The Council or the ap-
propriate Federal banking agency shall—
(1) publish in the Federal Register a summary
of the comments received under this section, identify-
ing significant issues raised and providing comment
on such issues; and
(2) eliminate unnecessary regulations to the ex-
tent that such action is appropriate.
(e) REPORT TO CONGRESS.—Not later than 30 days
after carrying out subsection (d)(1), the Council shall pro-
vide to the Congress a report, which shall include—
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(1) a summary of any significant issues raised
by public comments received by the Council and the
appropriate Federal banking agencies under this sec-
tion and the relative merits of such issues; and
(2) an analysis of whether the appropriate Fed-
eral banking agency involved is able to address the
regulatory burdens associated with such issues by reg-
ulation, or whether such burdens must be addressed
by legislative action.
SEC. 232. COUNTRY RISK REQUIREMENTS.
Subsections (a)(1) and (b) of section 905 of the Inter-
national Lending Supervision Act of 1983 (12 U.S.C. 3904)
are amended by striking ‘‘shall’’ and inserting ‘‘may’’.
SEC. 233. AUDIT COSTS.
(a) IN GENERAL.—
(1) AUDITOR ATTESTATIONS.—Section 36 of the
Federal Deposit Insurance At (12 U.S.C. 1831m) is
amended—
(A) in subsection (a)(2)(A)(ii), by striking
‘‘subsections (c) and (d)’’ and inserting ‘‘sub-
section (c)’’;
(B) by striking subsections (c) and (e); and
(C) by redesignating subsections (d), (f), (g),
(h), (i), and (j) as subsections (c), (d), (e), (f),
(g), and (h), respectively.
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(2) PUBLIC AVAILABILITY.—Section 36(a)(3) of
the Federal Deposit Insurance Act (12 U.S.C.
1831m(a)(3)) is amended by inserting at the end the
following new sentence: ‘‘Notwithstanding the preced-
ing sentence, the Corporation and the appropriate
Federal banking agencies may designate certain in-
formation as privileged and confidential and not
available to the public.’’.
(b) EXEMPTION FOR WELL-CAPITALIZED AND WELL-
MANAGED INSURED DEPOSITORY INSTITUTIONS.—Section
36 of the Federal Deposit Insurance Act (12 U.S.C. 1831m)
(as amended by subsection (a) of this section) is amended
by adding at the end the following new subsection:
‘‘(i) EXEMPTION FOR WELL-CAPITALIZED AND WELL-
MANAGED INSURED DEPOSITORY INSTITUTIONS.—No pro-
vision of this section other than subsection (c) shall apply
with respect to any insured depository institution which is
well-capitalized and well-managed.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (1)(B) of section 36(e) of the Fed-
eral Deposit Insurance Act (as so redesignated by sub-
section (a)(1)(C) of this section) is amended by strik-
ing ‘‘(b)(2), (c), and (d)’’ and inserting ‘‘(b)(2) and
(c)’’.
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(2) Paragraph (1) of section 36(g) of the Federal
Deposit Insurance Act (as so redesignated by sub-
section (a)(1)(C) of this section) is amended by strik-
ing ‘‘(d)’’ and inserting ‘‘(c)’’.
SEC. 234. STANDARDS FOR DIRECTOR AND OFFICER LIABIL-
ITY.
Section 3(u) of the Federal Deposit Insurance Act (12
U.S.C. 1813(u)) is amended—
(1) in paragraph (1), by inserting ‘‘(other than
an outside director)’’ after ‘‘director’’;
(2) in paragraph (3), by inserting ‘‘(other than
an outside director)’’ after ‘‘any other person’’; and
(3) in paragraph (4), by inserting ‘‘or outside
director’’ after ‘‘or accountant)’’.
SEC. 235. FOREIGN BANK APPLICATIONS.
(a) PROVISIONS RELATING TO ESTABLISHMENT OF
BANK OFFICES.—Section 7(d) of the International Banking
Act of 1978 (12 U.S.C. 3105(d)) is amended—
(1) in paragraph (2), by striking ‘‘The’’ and in-
serting ‘‘Except as provided in paragraph (6), the’’;
(2) in paragraph (5), by striking ‘‘Consistent
with the standards for approval in paragraph (2),
the’’ and inserting ‘‘The’’; and
(3) by adding at the end the following new para-
graphs:
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‘‘(6) EXCEPTION.—
‘‘(A) IN GENERAL.—If the Board is unable
to find under paragraph (2) that a foreign bank
is subject to comprehensive supervision or regula-
tion on a consolidated basis by the appropriate
authorities in its home country, the Board may
nevertheless approve an application under para-
graph (1) by such foreign bank if—
‘‘(i) the appropriate authorities in the
home country of such foreign bank are
working to establish arrangements for the
consolidated supervision of such bank; and
‘‘(ii) all other factors are consistent
with approval.
‘‘(B) 
ADDITIONAL
CONDITIONS.—The
Board, after requesting and considering the
views of the appropriate State bank supervisor
or the Comptroller of the Currency, as the case
may be, may impose such conditions or restric-
tions relating to activities or business operations
of the proposed branch, agency, or commercial
lending company subsidiary, including restric-
tions on sources of funding, as are considered ap-
propriate in the public interest.
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‘‘(C) MODIFICATION OF CONDITIONS.—Any
condition or restriction imposed by the Board
under this subsection in connection with the ap-
proval of an application may be varied or with-
drawn where such modification is consistent
with the public interest.
‘‘(7) TIME PERIOD FOR BOARD ACTION.—
‘‘(A) FINAL ACTION.—The Board shall take
final action on any application under para-
graph (1) within 180 days of receipt of the ap-
plication, except that the Board may extend for
an additional 180 days the period within which
to take final action on such application, after
providing notice of, and the reasons for, the ex-
tension to the applicant foreign bank and any
appropriate State bank supervisor or the Comp-
troller of the Currency, as the case may be.
‘‘(B) FAILURE TO SUBMIT INFORMATION.—
The Board may deny any application if it has
not received information requested from the ap-
plicant foreign bank or appropriate authorities
in the home country in sufficient time to permit
the Board to evaluate such information ade-
quately within the time periods for final action
set forth in subparagraph (A).
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‘‘(C) WAIVER.—A foreign bank may waive
the applicability of subparagraph (A) with re-
spect to any such application.’’.
(b) PROVISION RELATING TO TERMINATION OF BANK
OFFICES.—Section 7(e)(1)(A) of the International Banking
Act of 1978 (12 U.S.C. 3105(e)(1)(A)) is amended—
(1) by striking ‘‘(A)’’ and inserting ‘‘(A)(i)’’;
(2) by striking ‘‘; or’’ and inserting ‘‘; and’’; and
(3) by inserting at the end the following new
clause:
‘‘(ii) the appropriate authorities in the
home country are not making progress in estab-
lishing arrangements for the comprehensive su-
pervision or regulation of such foreign bank on
a consolidated basis; or’’.
(c) UNIFORM TERMINATIONS OF FOREIGN BANK OF-
FICES, AGENCIES, BRANCHES, AND SUBSIDIARIES BY THE
FEDERAL RESERVE SYSTEM.—
(1) IN GENERAL.—Section 7(e)(1) of the Inter-
national Banking Act of 1978 (12 U.S.C. 3105(e)(1))
is amended—
(A) by inserting ‘‘or the Comptroller of the
Currency’’ after ‘‘State bank supervisor’’;
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(B) by inserting ‘‘or a Federal branch or
agency’’ after ‘‘commercial lending company sub-
sidiary’’ the 1st place such term appears; and
(C) in the last sentence, by inserting ‘‘or a
Federal branch or agency’’ after ‘‘commercial
lending company subsidiary’’.
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENT.—Section 7(e) of the International Banking Act
of 1978 (12 U.S.C. 3105(e)) is amended—
(A) by striking paragraph (5); and
(B) by redesignating paragraphs (6) and
(7) as paragraphs (5) and (6), respectively.
SEC. 236. DUPLICATE EXAMINATION OF FOREIGN BANKS.
Section 7(c)(1) of the International Banking Act of
1978 (12 U.S.C. 3105(c)(1)) is amended—
(1) by adding after clause (ii) of subparagraph
(B) the following new clause:
‘‘(iii) AVOIDANCE OF DUPLICATION.—
In exercising its authority under this para-
graph, the Board shall take all reasonable
measures to reduce burden and avoid un-
necessary duplication of examinations.’’;
(2) by striking subparagraph (C) and inserting
the following:
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‘‘(C) ON-SITE EXAMINATION.—Each Federal
branch or agency, and each State branch or
agency, of a foreign bank shall be subject to on-
site examination by a Federal banking agency or
State bank supervisor as frequently as would a
national bank or State bank, respectively, by its
appropriate Federal banking agency.’’; and
(3) by amending subparagraph (D) to read as
follows:
‘‘(D) COST OF EXAMINATIONS.—The cost of
any examination undertaken pursuant to sub-
paragraph (A) shall be assessed against and col-
lected from the foreign bank or the foreign com-
pany that controls the foreign bank, as the case
may be, but only to the same extent that fees are
collected by the Board for examination of any
State member insured bank.’’.
SEC. 237. SECOND MORTGAGES.
(a) IN GENERAL.—Section 103(aa)(1) of the Truth in
Lending Act (15 U.S.C. 1602(aa)(1)) is amended—
(1) by inserting ‘‘a subordinate mortgage on’’
after ‘‘secured by’’; and
(2) by striking ‘‘a residential mortgage trans-
action’’.
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(b) EFFECT ON PENDING CASES.—Any administrative
enforcement proceeding or other action which—
(1) is pending on the date of the enactment of
this Act; and
(2) is based on regulations in effect as of such
date under the Truth in Lending Act with respect to
high-cost residential mortgage transactions which are
not subordinate mortgages,
shall be dismissed as of such date.
SEC. 238. STREAMLINING FDIC APPROVAL OF NEW STATE
BANK POWERS.
(a) IN GENERAL.—Section 24(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1831a(a)) is amended to
read as follows:
‘‘(a) ACTIVITIES GENERALLY.—
‘‘(1) IN GENERAL.—An insured State bank may
not engage as principal in any type of activity that
is not permissible for a national bank unless—
‘‘(A) the bank has given the Corporation
written notice of the bank’s intention to engage
in such activity at least 60 days before commenc-
ing to engage in the activity and within such 60-
day period (or within the extended period pro-
vided under paragraph (2)) the Corporation has
not disapproved the activity; and
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‘‘(B) the State bank is, and continues to be,
in compliance with applicable capital standards
prescribed by the appropriate Federal banking
agency.
‘‘(2) EXTENSION OF PERIOD.—The Corporation
may extend the 60-day period referred to in para-
graph (1) for issuing a notice of disapproval with re-
spect to any activity for an additional 30 days.
‘‘(3) CONTENTS OF NOTICE.—Any notice submit-
ted by a State bank under paragraph (1)(A) shall
contain such information as the Corporation may re-
quire.
‘‘(4) BASIS FOR DISAPPROVAL.—The Corporation
may disapprove an activity for a State bank under
this subsection unless the Corporation determines that
the activity would pose no significant risk to the ap-
propriate insurance fund.’’.
(b) SUBSIDIARIES OF INSURED STATE BANKS.—Sec-
tion 24(d)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1831a(d)(1)) is amended to read as follows:
‘‘(1) ACTIVITIES GENERALLY.—
‘‘(A) IN GENERAL.—A subsidiary of an in-
sured State bank may not engage as principal in
any type of activity that is not permissible for
a subsidiary of a national bank unless—
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‘‘(i) the subsidiary has given the Cor-
poration written notice of the subsidiary’s
intention to engage in such activity at least
60 days before commencing to engage in the
activity and within such 60-day period (or
within the extended period provided under
paragraph (2)) the Corporation has not dis-
approved the activity; and
‘‘(ii) the bank is, and continues to be,
in compliance with applicable capital
standards prescribed by the appropriate
Federal banking agency.
‘‘(B) EXTENSION
OF
PERIOD.—The Cor-
poration may extend the 60-day period referred
to in subparagraph (A) for issuing a notice of
disapproval with respect to any activity for an
additional 30 days.
‘‘(C) CONTENTS
OF
NOTICE.—Any notice
submitted by a subsidiary of an insured State
bank under subparagraph (A)(i) shall contain
such information as the Corporation may re-
quire.
‘‘(D) BASIS FOR DISAPPROVAL.—The Cor-
poration may disapprove an activity for a sub-
sidiary of an insured State bank under this
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paragraph unless the Corporation determines
that the activity would pose no significant risk
to the appropriate insurance fund.’’.
SEC. 239. REPEAL OF CALL REPORT ATTESTATION RE-
QUIREMENT.
Section 5211(a) of the Revised Statutes (12 U.S.C.
161(a)) is amended by striking the 4th sentence.
SEC. 240. AUTHORITY OF THE COMPTROLLER OF THE CUR-
RENCY.
(a) STATE SUPERVISION.—Chapter 1 of title LXII of
the Revised Statutes of the United States (12 U.S.C. 21 et
seq.) is amended—
(1) by redesignating section 5136A as section
5136C; and
(2) by inserting after section 5136 (12 U.S.C.
24) the following new section:
‘‘SEC. 5136A. STATE SUPERVISION OF INSURANCE.
‘‘(a) STATE LICENSING OF INSURANCE ACTIVITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), no
provision of section 5136, any other section of this
title, or section 13 of the Federal Reserve Act may be
construed as limiting or otherwise impairing the au-
thority of any State to regulate—
‘‘(A) the extent to which, and the manner in
which, a national bank may engage within the
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State in insurance activities pursuant to section
5136B of this chapter or section 13 of the Fed-
eral Reserve Act;
‘‘(B) the manner in which a national bank
may engage within the State in insurance ac-
tivities pursuant to section 5136(b)(2)(B) of the
Revised Statutes of the United States; or
‘‘(C) the manner in which a national bank
may engage within the State in insurance ac-
tivities pursuant to section 5136(b)(2)(A) of the
Revised Statutes of the United States through,
and limited to, consumer disclosure requirements
or licensing requirements, procedures, and quali-
fications as described in paragraph (2)(C).
‘‘(2) PROHIBITION
ON
STATE
DISCRIMINATION
AGAINST
NATIONAL
BANKS.—Notwithstanding para-
graph (1)—
‘‘(A) PROVIDING INSURANCE AS AGENT OR
BROKER.—No State may impose any insurance
regulatory requirement relating to providing in-
surance as an agent or broker that treats a na-
tional bank differently than all other persons
who are authorized to provide insurance as
agents or brokers in such State, unless there is
a legitimate and reasonable State regulatory
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purpose for the requirement for which there is no
less restrictive alternative.
‘‘(B) PROVIDING INSURANCE AS PRINCIPAL,
AGENT, OR BROKER.—
‘‘(i) No State may impose on a na-
tional bank any insurance regulatory re-
quirement relating to providing insurance
as principal, agent, or broker that treats the
national bank more restrictively than any
other depository institution (as defined in
section 3(c)(1) of the Federal Deposit Insur-
ance Act, 12 U.S.C. 1813(c)(1)) operating
in the State.
‘‘(ii) Nothing in this subparagraph
shall affect the validity of a State law
that—
‘‘(I) prevents a national bank
from engaging in insurance activities
within the State to as great an extent
as a savings association (as defined in
section 3(b)(1) of the Federal Deposit
Insurance Act, 12 U.S.C. 1813(b)(1))
may engage in such activities within
the State; and
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‘‘(II) was in effect on June 1,
1995.
‘‘(C) LICENSING QUALIFICATIONS AND PRO-
CEDURES.—No State may discriminate against
a national bank with respect to the following re-
quirements, procedures, and qualifications as
such requirements, procedures, and qualifications
relate to the authority of the national bank to
provide insurance in such State as an agent or
broker:
‘‘(i) License application and process-
ing procedures.
‘‘(ii) Character, experience, and edu-
cational qualifications for licenses.
‘‘(iii) Testing and examination re-
quirements for licenses.
‘‘(iv) Fee requirements for licenses.
‘‘(v) Continuing education require-
ments.
‘‘(vi) Types of licenses required.
‘‘(vii) Standards and requirements for
renewal of licenses.
‘‘(b) AUTHORITY OF THE COMPTROLLER OF THE CUR-
RENCY.—A national bank may not provide insurance as
a principal, agent, or broker except as specifically provided
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in this section, the paragraph designated as the ‘Seventh’
of section 5136(a) of this chapter, section 5136(b) or 5136B
of this chapter, or section 13 of the Federal Reserve Act.
‘‘(c) PRESERVATION
OF FEDERALLY AUTHORIZED
BANK ACTIVITIES IN PERMISSIVE STATES.—No provision
of this section may be construed as affecting the authority,
pursuant to section 5136B of this chapter or section 13 of
the Federal Reserve Act, of a national bank to act as insur-
ance agent or broker consistent with State law.
‘‘(d) PRESERVATION OF NATIONAL BANK AUTHORITY
CONSISTENT WITH STATE BANK AUTHORITY.—Except as
provided in subsection (a)(2)(B), no provision of this sec-
tion or section 5136(b)(1) shall have the effect of enabling
a State to deny a national bank authority that the bank
otherwise possesses to provide a product in a State, includ-
ing as agent, broker, or principal, where the bank is not
providing the product in the State other than to an extent
and in a manner that a State bank (as defined in section
3(a)(2) of the Federal Deposit Insurance Act, 12 U.S.C.
1813(a)(2)) is permitted by the law of the State to provide
such product, except that nothing in this subsection shall
be construed as granting any new authority to a national
bank to provide any product because the law of the State
has authorized State banks to provide such product.
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‘‘(e) DEFINITIONS.—For purposes of this section, sec-
tions 5136 and 5136B, and section 13 of the Federal Re-
serve Act, the following definitions shall apply:
‘‘(1) INSURANCE.—The term ‘insurance’ means
any product defined or regulated as insurance, con-
sistent with the relevant State insurance law, by the
insurance regulatory authority of the State in which
such product is sold, solicited, or underwritten, in-
cluding any annuity contract the income on which is
tax deferred under section 72 of the Internal Revenue
Code of 1986.
‘‘(2) STATE.—The term ‘State’ has the same
meaning as in section 3(a)(3) of the Federal Deposit
Insurance Act.
‘‘(f) GRANDFATHER PROVISION.—
‘‘(1) IN GENERAL.—Any national bank which,
before January 1, 1995, was providing insurance as
agent or broker under section 13 of the Federal Re-
serve Act may provide insurance as an agent or
broker under such section, to no less extent and in a
no more restrictive manner as such bank was provid-
ing insurance as agent or broker under such section
on January 1, 1995, notwithstanding contrary State
law, subject to final, controlling judgment in a pend-
ing action.
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‘‘(2) TERMINATION.—This subsection shall cease
to apply with respect to any national bank described
in paragraph (1) if—
‘‘(A) the bank is subject to an acquisition,
merger, consolidation, or change in control, other
than a transaction to which section 18(c)(12) of
the Federal Deposit Insurance Act applies; or
‘‘(B) any bank holding company which di-
rectly or indirectly controls such bank is subject
to an acquisition, merger, consolidation, or
change in control, other than a transaction in
which the beneficial ownership of such bank hold-
ing company or of a bank holding company
which controls such company does not change as
a result of the transaction.
‘‘(g) PRESERVATION OF BANKING PRODUCTS.—Noth-
ing in this section shall be construed as affecting the ability
of a national bank, or a subsidiary of a national bank, to
engage in any activity, including any activity authorized
pursuant to the paragraph designated the ‘‘Seventh’’ of sec-
tion 5136(a), that is part of, and not merely incidental to,
the business of banking.’’.
(b) INTERPRETIVE AUTHORITY OF THE COMPTROLLER
OF THE CURRENCY.—Section 5136 of the Revised Statutes
of the United States (12 U.S.C. 24) is amended—
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(1) by striking ‘‘Upon duly making and filing
articles of association’’ and inserting ‘‘(a) IN GEN-
ERAL.—Upon duly making and filing articles of asso-
ciation’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) INTERPRETIVE AUTHORITY OF THE COMPTROL-
LER OF THE CURRENCY.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), it
shall not be incidental to banking for a national bank
to provide insurance as a principal, agent, or broker.
‘‘(2) SCOPE OF APPLICATION.—Notwithstanding
paragraph (1), it shall be incidental to banking for
a national bank to engage in the following activities:
‘‘(A) Providing, as an agent or broker, any
annuity contract the income on which is tax de-
ferred under section 72 of the Internal Revenue
Code of 1986.
‘‘(B) Providing, as a principal, agent, or
broker, any type of insurance, other than an an-
nuity or title insurance, which the Comptroller
of the Currency specifically determined, before
May 1, 1995, to be incidental to banking with
respect to national banks.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
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(1) The 11th undesignated paragraph of section
13 of the Federal Reserve Act (12 U.S.C. 92) is
amended by inserting ‘‘, and subject to section 5136A
of the Revised Statutes of the United States,’’ after
‘‘the laws of the United States’’.
(2) The paragraph designated the ‘‘Seventh’’ of
section 5136 of the Revised Statutes of the United
States (12 U.S.C. 24) is amended by striking ‘‘subject
to law,’’ and inserting ‘‘subject to subsection (b), sec-
tion 5136A, and any other provision of law,’’.
(3) Section 1306 of title 18, United States Code,
is amended by striking ‘‘5136A’’ and inserting
‘‘5136C’’.
(d) CLERICAL AMENDMENT.—The table of sections for
chapter 1 of title LXII of the Revised Statutes of the United
States is amended—
(1) by redesignating the item relating to section
5136A as section 5136C; and
(2) by inserting after the item relating to section
5136 the following new item:
‘‘5136A. State supervision of insurance.’’.
(e) PRESERVATION OF BANK HOLDING COMPANY IN-
SURANCE AUTHORITY.—No provision of this section, and
no amendment made by this section to any other provision
of law, may be construed as affecting the authority of a
bank holding company to engage in insurance agency activ-
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ity pursuant to section 4(c) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(c)).
SEC. 241. NATIONAL BANK COMMUNITY DEVELOPMENT IN-
SURANCE ACTIVITIES.
(a) IN GENERAL.—Chapter 1 of title LXII of the Re-
vised Statutes of the United States (12 U.S.C. 21 et seq.)
is amended by inserting after section 5136A (as added by
section 240(a) of this Act) the following new section:
‘‘SEC. 5136B. INSURANCE SALES IN EMPOWERMENT ZONES.
‘‘(a) AUTHORITY TO SELL INSURANCE
AS AGENT
FROM EMPOWERMENT ZONES.—The Comptroller of the
Currency may approve an application by a national bank
maintaining a main office or full-service branch in an
empowerment zone to act as an agent or broker from such
office or branch for any fire, life, or other insurance com-
pany authorized to do business in the State in which the
customer is located if—
‘‘(1) the bank provides sufficient evidence that
the availability of competitively priced insurance in
the empowerment zone is inadequate; and
‘‘(2) 
the 
insurance 
is 
sold 
only 
in 
the
empowerment zone.
‘‘(b) APPLICATION OF STATE LAW.—State laws which
regulate conducting the business of insurance shall apply
to national banks and their employees that sell insurance
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as agent or broker under this section to the same extent as
such laws apply to other entities and persons not affiliated
with depository institutions except—
‘‘(1) in any case in which the Comptroller of the
Currency determines, after notice to and comment by
the appropriate State insurance officials, that the ap-
plication of a State law would have an unreasonably
discriminatory effect upon the sale of insurance by
national banks or their employees in comparison with
the effect the application of the State law would have
with respect to sale of insurance by other entities; or
‘‘(2) when State law by its own terms does not
apply to national banks or employees of such banks.
‘‘(c) AUTHORITY
OF COMPTROLLER
OF
THE CUR-
RENCY.—
‘‘(1) IN GENERAL.—The Comptroller of the Cur-
rency may prescribe regulations governing sales of in-
surance by national banks pursuant to this section.
‘‘(2) ENFORCEMENT OF STATE LAW.—The provi-
sions of any State law to which a national bank is
subject under this section shall be enforced with re-
spect to such bank by the Comptroller of the Cur-
rency.
‘‘(d) DEFINITIONS.—
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‘‘(1) 
EMPOWERMENT
ZONE.—The 
term
‘empowerment zone’ means an area that meets the
standards for designation as an empowerment zone or
enterprise community under section 1392 of the Inter-
nal Revenue Code of 1986 or an Indian reservation.
‘‘(2) FULL-SERVICE
BRANCH.—The term ‘full-
service branch’ means a staffed facility which has
been approved as a branch and offers loan and de-
posit services.
‘‘(3) INDIAN RESERVATION.—The term ‘Indian
reservation’ has the meaning given such term by sec-
tion 168(j)(6) of the Internal Revenue Code of 1986.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
chapter 1 of title LXII of the Revised Statutes of the United
States is amended by inserting after the item relating to
section 5136A (as added by section 240(d) of this title) the
following new item:
‘‘5136B. Insurance sales in empowerment zones.’’.
SEC. 242. AUTHORIZING BANK SERVICE COMPANIES TO OR-
GANIZE AS LIMITED LIABILITY PARTNER-
SHIPS.
(a) AMENDMENT TO SHORT TITLE.—Section 1 of the
Bank Service Corporation Act (12 U.S.C. 1861(a)) is
amended by striking subsection (a) and inserting the follow-
ing new subsection:
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‘‘(a) SHORT TITLE.—This Act may be cited as the
‘Bank Service Company Act’.’’;
(b) AMENDMENTS TO DEFINITIONS.—Section 1(b) of
the Bank Service Corporation Act (12 U.S.C. 1861(b)) is
amended—
(1) by striking paragraph (2) and inserting the
following new paragraph:
‘‘(2) the term ‘bank service company’ means—
‘‘(A) any corporation—
‘‘(i) which is organized to perform
services authorized by this Act; and
‘‘(ii) all of the capital stock of which is
owned by 1 or more insured banks; and
‘‘(B) any limited liability company—
‘‘(i) which is organized to perform
services authorized by this Act; and
‘‘(ii) all of the members of which are 1
or more insured banks.’’;
(2) in paragraph (6)—
(A) by striking ‘‘corporation’’ and inserting
‘‘company’’; and
(B) by striking ‘‘and’’ after the semicolon;
(3) by redesignating paragraph (7) as para-
graph (8) and inserting after paragraph (6) the fol-
lowing new paragraph:
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‘‘(7) the term ‘limited liability company’ means
any company organized under the law of a State (as
defined in section 3 of the Federal Deposit Insurance
Act) which provides that a member or manager of
such company is not personally liable for a debt, obli-
gation, or liability of the company solely by reason
of being, or acting as, a member or manager of such
company; and’’; and
(4) in paragraph (8) (as so redesignated)—
(A) by striking ‘‘corporation’’ each place
such term appears and inserting ‘‘company’’;
and
(B) by striking ‘‘capital stock’’ and insert-
ing ‘‘equity’’.
(c) AMENDMENTS TO SECTION 2.—Section 2 of the
Bank Service Corporation Act (12 U.S.C. 1862) is amend-
ed—
(1) by striking ‘‘corporation’’ and inserting
‘‘company’’;
(2) by striking ‘‘corporations’’ and inserting
‘‘companies’’; and
(3) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
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(d) AMENDMENTS TO SECTION 3.—Section 3 of the
Bank Service Corporation Act (12 U.S.C. 1863) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(e) AMENDMENTS TO SECTION 4.—Section 4 of the
Bank Service Corporation Act (12 U.S.C. 1864) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (b), by inserting ‘‘or members’’
after ‘‘shareholders’’ each place such term appears;
(3) in subsections (c) and (d), by inserting ‘‘or
member’’ after ‘‘shareholder’’ each place such term ap-
pears;
(4) in subsection (e)—
(A) by inserting ‘‘or members’’ after ‘‘na-
tional bank and State bank shareholders’’;
(B) by striking ‘‘its national bank share-
holder or shareholders’’ and inserting ‘‘any
shareholder or member of the company which is
a national bank’’;
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(C) by striking ‘‘its State bank shareholder
or shareholders’’ and inserting ‘‘any shareholder
or member of the company which is a State
bank’’;
(D) by striking ‘‘such State bank or banks’’
and inserting ‘‘any such State bank’’; and
(E) by inserting ‘‘or members’’ after ‘‘State
bank and national bank shareholders’’;
(5) in subsection (f), by inserting ‘‘or providing
insurance as principal, agent, or broker (except to the
extent permitted under subparagraph (A) or (E) of
section 4(c)(8) of the Bank Holding Company Act of
1956)’’ after ‘‘or deposit taking’’; and
(6) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(f) AMENDMENTS TO SECTION 5.—Section 5 of the
Bank Service Corporation Act (12 U.S.C. 1865) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
(g) AMENDMENTS TO SECTION 6.—Section 6 of the
Bank Service Corporation Act (12 U.S.C. 1866) is amend-
ed—
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(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) by inserting ‘‘or is not a member of’’ after
‘‘does not own stock in’’;
(3) by striking ‘‘the nonstockholding institution’’
and inserting ‘‘such depository institution’’;
(4) by inserting ‘‘or is a member of’’ after ‘‘that
owns stock in’’;
(5) in paragraphs (1) and (2), by inserting ‘‘or
nonmember’’ after ‘‘nonstockholding’’; and
(6) in the heading for such section by inserting
‘‘OR NONMEMBERS’’ after ‘‘NONSTOCKHOLDERS’’.
(h) AMENDMENTS TO SECTION 7.—Section 7 of the
Bank Service Corporation Act (12 U.S.C. 1867) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (a)—
(A) by inserting ‘‘or principal member’’
after ‘‘principal shareholder’’; and
(B) by inserting ‘‘or member’’ after ‘‘other
shareholder’’; and
(3) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
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SEC. 243. BANK INVESTMENTS IN EDGE ACT AND AGREE-
MENT CORPORATIONS.
The 10th undesignated paragraph of section 25A of the
Federal Reserve Act (12 U.S.C. 618) is amended by striking
the last sentence and inserting the following: ‘‘Any national
bank may invest in the stock of any corporation organized
under this section. The aggregate amount of stock held by
any national bank in all corporations engaged in business
of the kind described in this section or section 25 shall not
exceed an amount equal to 10 percent of the capital and
surplus of such bank unless the Board determines that the
investment of an additional amount by the bank would not
be unsafe or unsound and, in any case, shall not exceed
an amount equal to 25 percent of the capital and surplus
of such bank.’’.
SEC. 244. REPORT ON THE RECONCILIATION OF DIF-
FERENCES 
BETWEEN 
REGULATORY 
AC-
COUNTING PRINCIPLES AND GENERALLY AC-
CEPTED ACCOUNTING PRINCIPLES.
Before the end of the 180-day period beginning on the
date of the enactment of this Act, each appropriate Federal
banking agency (as defined in section 3 of the Federal De-
posit Insurance Act) shall submit to the Committee on
Banking and Financial Services of the House of Represent-
atives and the Committee on Banking, Housing, and Urban
Affairs of the Senate a report on the actions taken and to
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be taken by the agency to eliminate or conform inconsistent
or duplicative accounting and reporting requirements ap-
plicable to reports or statements filed with any such agency
by insured depository institutions, as required by section
121 of the Federal Deposit Insurance Corporation Improve-
ment Act of 1991.
SEC. 245. WAIVERS AUTHORIZED FOR RESIDENCY REQUIRE-
MENT FOR NATIONAL BANK DIRECTORS.
The 1st sentence of section 5146 of the Revised Statutes
of the United States (12 U.S.C. 72) is amended by inserting
‘‘(1) the Comptroller of the Currency may, in the Comptrol-
ler’s discretion, waive the residency requirement in the case
of any director of a national bank to whom the requirement
would otherwise apply, and (2)’’ after ‘‘except that’’.
TITLE III—LENDER LIABILITY
SEC. 301. LENDER LIABILITY.
(a) IN GENERAL.—The Federal Deposit Insurance Act
(12 U.S.C. 1811 et seq.) is amended by adding after section
44, the following new section:
‘‘SEC. 45. LENDER, FIDUCIARY, AND GOVERNMENT AGENCY
ENVIRONMENTAL LIABILITIES.
‘‘(a) LENDER ENVIRONMENTAL LIABILITY.—
‘‘(1) IN GENERAL.— Notwithstanding any other
provision or rule of Federal law, no lender, acting as
defined in this section, shall be liable pursuant to a
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Federal environmental law, except as provided in this
section.
‘‘(2) ACTUAL
PARTICIPATION
REQUIRED.—A
lender shall only be liable pursuant to a Federal envi-
ronmental law when the lender actually participates
in management of another person’s activities which
create liability under the same Federal environmental
law.
‘‘(3) DEFINITIONS.—The following definitions
shall apply for purposes of this section:
‘‘(A) PARTICIPATE IN MANAGEMENT.—The
term ‘participate in management’ means actu-
ally participating in the management or oper-
ational affairs of other persons’ activities, and
does not include merely having the capacity to
influence, or the unexercised right to control such
activities.
‘‘(B) PARTICIPATE
IN
MANAGEMENT.—A
person shall be considered to ‘participate in
management’ while a borrower is still in posses-
sion of property, only if such person—
‘‘(i) exercises decisionmaking control
over the environmental compliance of a bor-
rower, such that the person has undertaken
responsibility for the hazardous substance
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handling or disposal practices of the bor-
rower; or
‘‘(ii) exercises control at a level com-
parable to that of a manager of the enter-
prise of the borrower, such that the person
has assumed or manifested responsibility for
the overall management of the enterprise en-
compassing day-to-day decisionmaking with
respect to environmental compliance, or
with respect to substantially all of the oper-
ational aspects (as distinguished from fi-
nancial or administrative aspects) of the
enterprise, other than environmental com-
pliance.
‘‘(C) PARTICIPATE IN MANAGEMENT.—The
term ‘participate in management’ does not in-
clude engaging in an act or failing to act before
the time that an extension of credit is made or
a security interest is created in property.
‘‘(D) PARTICIPATE IN MANAGEMENT.—The
term ‘participate in management’ does not in-
clude, unless such actions rise to the level of par-
ticipating in management (as defined in sub-
paragraphs (A) and (B))—
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‘‘(i) holding an extension of credit or a
security interest or abandoning or releasing
an extension of credit or a security interest;
‘‘(ii) including in the terms of an ex-
tension of credit, or in a contract or secu-
rity agreement relating to such an exten-
sion, covenants, warranties, or other terms
and conditions that relate to environmental
compliance;
‘‘(iii) monitoring or enforcing the
terms and conditions of an extension of
credit or security interest;
‘‘(iv) monitoring or undertaking 1 or
more inspections of property, except that
monitoring or undertaking any such inspec-
tion, although not required by this sub-
section, shall provide probative evidence
that a holder of a security interest is acting
to preserve and protect the property during
the time the holder may have possession or
control of such property;
‘‘(v) requiring or conducting a re-
sponse action or other lawful means of ad-
dressing the release or threatened release of
a hazardous substance in connection with
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property prior to, during, or upon the expi-
ration of the term of an extension of credit;
‘‘(vi) providing financial or other ad-
vice or counseling in an effort to mitigate,
prevent, or cure default or diminution in
the value of the property;
‘‘(vii) restructuring, renegotiating, or
otherwise agreeing to alter the terms and
conditions of an extension of credit or secu-
rity interest, or exercising forbearance; or
‘‘(viii) exercising other remedies that
may be available under applicable law for
the breach of any term or condition of the
extension of credit or security agreement.
‘‘(E) When a lender did not participate in
management of property prior to foreclosure,
then the lender shall not be liable even if such
person forecloses on property, sells, re-leases, or
liquidates property, maintains business activi-
ties, winds up operations, or undertakes any re-
sponse action with respect to property, or takes
other measures to preserve, protect, or prepare
property prior to sale or disposition, if such per-
son seeks to sell, release, or otherwise divest the
property at the earliest practical, commercially
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reasonable time, on commercially reasonable
terms, taking into account market conditions
and legal and regulatory requirements.
‘‘(4) LIMITATION ON LIABILITY.—The liability of
any lender that is liable under any Federal environ-
mental law shall be limited to only the cost of any
response action or corrective action to the extent and
in the amount that the lender actively and directly
contributed to the hazardous substance release. A
lender shall not be liable for the cost of any response
action or corrective action relating to the release of a
hazardous substance which commences before and con-
tinues after the lender obtains a security interest in
the property so long as the lender does not actively
and directly contribute to the hazardous substance re-
lease.
‘‘(b) FIDUCIARY ENVIRONMENTAL LIABILITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision or rule of Federal law, no fiduciary, acting
as defined in this section, shall be liable pursuant to
any Federal environmental law, except as provided in
this section.
‘‘(2) LIABILITY OF FIDUCIARY.—
‘‘(A) Subject to subparagraphs (B) and (C),
a fiduciary holding title to property or otherwise
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‘‘(G) The Comprehensive Environmental
Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.).
‘‘(H) The Pollution Prevention Act of 1990
(42 U.S.C. 13101 et seq.).
‘‘(2) EXTENSION OF CREDIT.—The term ‘exten-
sion of credit’ means the making or renewal of any
loan, a granting of a line of credit or extending credit
in any manner, such as an advance by means of an
overdraft or the issuance of a standby letter of credit,
and a lease finance transaction—
‘‘(A) in which the lessor does not initially
select the leased property and does not, during
the lease term, control the daily operation or
maintenance of the property; or
‘‘(B) that conforms with regulations issued
by the appropriate Federal banking agency or
the appropriate State bank supervisory (as these
terms are defined in section 3 of the Federal De-
posit Insurance Act or with regulations issued by
the National Credit Union Administration
Board, as appropriate.
‘‘(3) FIDUCIARY.—The term ‘fiduciary’ means a
person who acts for the exclusive benefit of another
person as a bona fide fiduciary within the meaning
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of section 3(21) of the Employee Retirement Income
Security Act of 1974, trustee, executor, administrator,
custodian, guardian, conservator, receiver, committee
of estates of lunatics or other disabled persons, or per-
sonal representative; except, that the term ‘fiduciary’
does not include any person—
‘‘(A) who owns, or controls, is affiliated
with, or takes any action with respect to prop-
erty on behalf of or for the benefit of a lender or
takes any action to protect a lender’s extension
of credit or security interest (any such person
shall be treated as a lender under subsection (a)
of this section); or
‘‘(B) who is acting as a fiduciary with re-
spect to a trust or other fiduciary estate that—
‘‘(i) was not created as part of, or to
facilitate, one or more estate plans or pur-
suant to the incapacity of a natural person;
and
‘‘(ii) was organized for the primary
purpose of, or is engaged in, actively carry-
ing on a trade or business for profit.
‘‘(4) FINANCIAL OR ADMINISTRATIVE ASPECT.—
The term ‘financial or administrative aspect’ means
a function such as a credit manager, accounts pay-
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able officer, accounts receivable officer, personnel
manager, comptroller, or chief financial officer, or
any similar function.
‘‘(5) FORECLOSURE, 
FORECLOSE.—The terms
‘foreclosure’ and ‘foreclose’ means, respectively, ac-
quiring, and to acquire, property through—
‘‘(A) purchase at sale under a judgment or
decree, a power of sale, a nonjudicial foreclosure
sale, or from a trustee, deed in lieu of foreclosure,
or similar conveyance, or through repossession, if
such property was security for an extension of
credit previously contracted;
‘‘(B) conveyance pursuant to an extension
of credit previously contracted, including the ter-
mination of a lease agreement; or
‘‘(C) any other formal or informal manner
by which the person acquires, for subsequent dis-
position, possession of collateral in order to pro-
tect the security interest of the person.
‘‘(6) HAZARDOUS SUBSTANCE.—The term ‘haz-
ardous substance’ means any chemical, biological, or-
ganic, inorganic, or radioactive pollutants, contami-
nants, materials, waste, or other substances regulated
under, defined, listed, or included in any Federal en-
vironmental law.
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‘‘(7) LENDER.—The term ‘lender’ means—
‘‘(A) a person that makes a bona fide exten-
sion of credit to or takes a security interest from
another person and includes a successor or as-
sign of the person which makes the extension of
credit or takes the security interest;
‘‘(B) the Federal National Mortgage Asso-
ciation, the Federal Home Loan Mortgage Cor-
poration, the Federal Agricultural Mortgage Cor-
poration, or other entity that in a bona fide
manner is engaged in the business of buying or
selling loans on interests therein;
‘‘(C) any person engaged in the business of
insuring or guaranteeing against a default in
the repayment of an extension of credit, or act-
ing as a surety with respect to an extension of
credit, to other persons; or
‘‘(D) any person regularly engaged in the
business of providing title insurance who ac-
quires property as a result of assignment or con-
veyance in the course of underwriting claims
and claims settlement.
‘‘(8) OPERATIONAL
ASPECT.—The term ‘oper-
ational aspect’ means a function such as a facility or
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plant manager, operations manager, chief operating
officer, or chief executive officer.
‘‘(9) PERSON.—The term ‘person’ means an in-
dividual, firm, corporation, association, partnership,
consortium, joint venture, commercial entity, United
States Government, State, municipality, commission,
political subdivision of a State, or any interstate
body.
‘‘(10) PROPERTY.—The term ‘property’ means
real, personal, and mixed property.
‘‘(11) RESPONSE
ACTION.—The term ‘response
action’ shall have the same meaning as that term is
defined in section 101 of the Comprehensive Environ-
mental Response, Compensation and Liability Act.
‘‘(12) SECURITY INTEREST.—The term ‘security
interest’ means a right under a mortgage, deed of
trust, assignment, judgment lien, pledge, security
agreement, factoring agreement, or lease, or any other
right accruing to a person to secure the repayment of
money, the performance of a duty, or some other obli-
gation.
‘‘(d) SAVINGS CLAUSE.—Nothing in subsections (a)
(b), or (c), shall—
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‘‘(1) affect the rights or immunities or other de-
fenses that are already available to lenders or fidu-
ciaries under any Federal environmental law;
‘‘(2) be construed to create any liability for any
lender or fiduciary; or
‘‘(3) create a private right of action against any
lender or fiduciary.
‘‘(e) FEDERAL BANKING AND LENDING AGENCY ENVI-
RONMENTAL LIABILITY.—
‘‘(1) GOVERNMENTAL ENTITIES.—
‘‘(A) BANKING AND LENDING AGENCIES.—
Except as provided in paragraph (C), a Federal
banking or lending agency shall not be liable
under any law imposing strict liability for the
release or threatened release of petroleum or a
hazardous substance at or from property (includ-
ing any right or interest therein) acquired—
‘‘(i) in connection with the exercise of
receivership or conservatorship authority, or
the liquidation or winding up of the affairs
of an insured depository institution, includ-
ing any of its subsidiaries, and bridge bank;
‘‘(ii) in connection with the provision
of loans, discounts, advances, guarantees,
insurance, or other financial assistance; or
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‘‘(iii) in connection with property re-
ceived in any civil or criminal proceeding,
or 
administrative 
enforcement 
action,
whether by settlement or order.
‘‘(B) APPLICATION OF STATE LAW.—Noth-
ing in paragraph (e) shall be construed as pre-
empting, affecting, applying to, or modifying
any State law, or any rights, actions, cause of
action, or obligations under State law, except
that liability under State law shall not exceed
the value of the agency’s interest in the asset giv-
ing rise to such liability. Nothing in this section
shall be construed to prevent a Federal banking
or lending agency from agreeing with a State to
transfer property to such State in lieu of any li-
ability that might otherwise be imposed under
State law.
‘‘(C) LIMITATION.—Notwithstanding para-
graph (A), and subject to section 107(d) of the
Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980, a Federal
banking or lending agency that directly caused
or materially contributed to the release of petro-
leum or a hazardous substance may be liable for
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removal, remedial, or other response action per-
taining to that release.
‘‘(D) SUBSEQUENT PURCHASER.—The im-
munity provided by paragraphs (A) and (B)
shall extend to the first subsequent purchaser of
property described in such paragraph from a
Federal banking or lending agency, unless such
purchaser—
‘‘(i) would otherwise be liable or poten-
tially liable for all or part of the costs of the
removal, remedial, or other response action
due to a prior relationship with the prop-
erty;
‘‘(ii) is or was affiliated with or relat-
ed to a party described in subparagraph (i);
‘‘(iii) fails to agree to take reasonable
steps necessary to abate the release or
threatened release or to protect public health
and safety in a manner consistent with the
purposes of applicable Federal environ-
mental laws; or
‘‘(iv) directly causes or significantly
and materially contributes to any addi-
tional release or threatened release on the
property.
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‘‘(E) FEDERAL
OR
STATE
ACTION.—Not-
withstanding subparagraph (D), if a Federal
agency or State environmental agency is re-
quired to take remedial action due to the failure
of a subsequent purchaser to carry out, in good
faith, the agreement described in subparagraph
(D)(iii), such subsequent purchaser shall reim-
burse the Federal or State environmental agency
for the costs of such remedial action. Any such
reimbursement shall not exceed the increase in
the fair market value of the property attributable
to the remedial action.
‘‘(2) LIEN
EXEMPTION.—Notwithstanding any
other provision of law, any property held by a subse-
quent purchaser referred to in paragraph (1)(D) or
held by a Federal banking or lending agency shall not
be subject to any lien for costs or damages associated
with the release or threatened release of petroleum or
a hazardous substance existing at the time of the
transfer.
‘‘(3) EXEMPTION FROM COVENANTS TO REMEDI-
ATE.—A Federal banking or lending agency shall be
exempt from any law requiring such agency to grant
covenants warranting that a removal, remedial, or
other response action has been, or will in the future
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be, taken with respect to property acquired in the
manner described in paragraph (e)(1)(A).
‘‘(4) DEFINITIONS.—For purposes of subsection
(e), the following definitions shall apply:
‘‘(A) FEDERAL BANKING OR LENDING AGEN-
CY.—The term ‘Federal banking or lending agen-
cy’ means the Corporation, the Resolution Trust
Corporation, the Board of Governors of the Fed-
eral Reserve System, the Comptroller of the Cur-
rency, the Office of Thrift Supervision, a Federal
Reserve Bank, a Federal Home Loan Bank, the
Department of Housing and Urban Develop-
ment, the National Credit Union Administration
Board, the Farm Credit Administration, the
Farm Credit System Insurance Corporation, the
Farm Credit System Assistance Board, the
Farmers Home Administration, the Rural Elec-
trification Administration, the Small Business
Administration, and any other Federal agency
acting in a similar capacity, in any of their ca-
pacities, and their agents or appointees.
‘‘(B) HAZARDOUS
SUBSTANCE.—The term
‘hazardous substance’ has the same meaning as
in section 101(14) of the Comprehensive Envi-
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ronmental Response, Compensation, and Liabil-
ity Act of 1980.
‘‘(C) RELEASE.—The term ‘release’ has the
same meaning as in section 101(22) of the Com-
prehensive Environmental Response, Compensa-
tion, and Liability Act of 1980, and includes the
use, storage, disposal, treatment, generation, or
transportation of a hazardous substance.
‘‘(5) SAVINGS
CLAUSE.—Nothing in subsection
(e) shall—
‘‘(A) affect the rights or immunities or other
defenses that are available under this Act or
other applicable law to any party, subject to the
provisions of this section;
‘‘(B) be construed to create any liability for
any party; or
‘‘(C) create a private right of action against
an insured depository institution or lender or
against a Federal banking or lending agency.’’.
(b) EFFECTIVE DATE.—This section shall take effect
upon the date of the enactment of this Act and shall apply
to any claim against any lender, fiduciary, or government
agency under any Federal environmental law that has not
been finally resolved by adjudication or settlement before
such date.
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TITLE IV—ANNUAL STUDY AND
REPORT 
ON 
IMPACT 
ON
LENDING 
TO 
SMALL 
BUSI-
NESS
SEC. 401. ANNUAL STUDY AND REPORT.
Not later than 12 months after the date of the enact-
ment of this Act, and annually thereafter, the Board of Gov-
ernors of the Federal Reserve System, the Director of the
Office of Thrift Supervision, the Comptroller of the Cur-
rency, and the Board of Directors of the Federal Deposit
Insurance Corporation shall jointly conduct a study and
submit to the Congress a report on the extent to which this
Act and the amendments made by this Act have, through
reductions in regulatory burdens, resulted in increased
lending to small businesses.