266
‘‘(2) All minimum balance requirements that af-
fect fees, charges, and penalties, including a clear
description of how each such minimum balance is
calculated.
‘‘(3) Any minimum amount required with re-
spect to the initial deposit in order to open the ac-
count.
‘‘(c) INFORMATION ON INTEREST RATES.—The dis-
closures required under subsections (a) and (b) with re-
spect to any account shall include the following informa-
tion:
‘‘(1) Any annual rate of simple interest.
‘‘(2) The frequency with which interest will be
compounded and credited.
‘‘(d) NO REGULATIONS AUTHORIZED.—No regula-
tions may be prescribed with respect to this section by the
Board or any agency referred to in this title, including
any regulation to define any terms used in this section.’’.
(d) DISCLOSURE OF CHANGE IN TERMS.—Section
265 of the Truth in Savings Act (12 U.S.C. 4304) is
amended to read as follows:
‘‘SEC. 265. DISCLOSURE OF CHANGE IN TERMS.
‘‘If any change is made in any item required to be
disclosed under section 264, all account holder who may
be affected by such change shall be notified by mail and
267
provided with a description of such change at least 30
days before the effective date of the change.’’.
(e) REPEAL OF SECTIONS.—Sections 266, 268, 271,
and 273 of the Truth is Savings Act (12 U.S.C. 4304,
4305, 4307, 4310, and 4312, respectively) are hereby re-
pealed.
(f) REDESIGNATION
OF SECTIONS.—Section 267,
270, 272 of the Truth in Savings Act (12 U.S.C. 4306,
4309, and 4311) are redesignated as sections 266, 268,
and 269, respectively.
(g) REDESIGNATION AND AMENDMENT OF SECTION
269.—Section 269 of the Truth in Savings Act (12 U.S.C.
4308) (as determined before the redesignation made by
subsection (f) of this section) is amended to read as fol-
lows:
‘‘SEC. 267. REGULATIONS.
‘‘(a) IN GENERAL.—The Board, after consultation
with each agency referred to in section 268(a) and public
notice and opportunity for comment, shall prescribe regu-
lations to carry out the purpose and provisions of this sub-
title.
‘‘(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.’’
268
(h) REDESIGNATION AND AMENDMENT OF SECTION
274.—Section 274 of the Truth in Savings Act (12 U.S.C.
4313) is amended to read as follows:
‘‘SEC. 270. DEFINITIONS.
‘‘For the purposes of this subtitle, the following defi-
nitions shall apply:
‘‘(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.
‘‘(2) DEPOSIT
BROKER.—The term ‘deposit
broker’—
‘‘(A) has the meaning given to such term
in section 29(f)(1) of the Federal Deposit In-
surance Act; and
‘‘(B) includes any person who solicits any
amount from any other person for deposit in an
insured depository institution.
‘‘(3) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’—
‘‘(A) means an institution described in
clause (i), (ii), (iii), (iv), (v), or (vi) of section
19(b)(1)(A) of the Federal Reserve Act; and
269
‘‘(B) does not include nonautomated credit
unions which were not required to comply with
the requirements of this title as of the date of
the enactment of the Financial Services Com-
petitiveness and Regulatory Relief Act of 1995
pursuant to the determination of the National
Credit Union Administration Board.
‘‘(4) INTEREST.—The term ‘interest’ includes
dividends paid with respect to share accounts which
are accounts within the meaning of paragraph (1).
‘‘(5) BOARD.—The term ‘Board’ means the
Board of Governors of the Federal Reserve Sys-
tem.’’.
(i) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the effective date of
regulations prescribed by the Board of Governors of
the Federal Reserve System to implement such
amendments.
(2) AUTHORITY TO ISSUE REGULATIONS.—Not-
withstanding paragraph (1), the Board of Governors
of the Federal Reserve System shall prescribe regu-
lations in accordance with the amendment made by
subsection (g).
270
(3) CONTINUED APPLICABILITY OF PROVISIONS
UNTIL EFFECTIVE DATE OF NEW REGULATIONS.—
The Truth in Savings Act, as in effect on the day
before the date of the enactment of this Act, shall
continue to apply on and after such date until the
effective date of the amendments to such Act under
this section.
SEC. 442. INFORMATION SHARING.
Section 18 of the Federal Deposit Insurance Act (12
U.S.C. 1828) is amended by inserting after subsection (s)
(as added by section 107(a)) of this Act) the following new
subsection:
‘‘(t) CUSTOMER ACCESS TO PRODUCTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, any depository institution, or any
affiliate or subsidiary of any depository institution,
may share or exchange information or otherwise
transfer information between or among themselves
without any restriction or limitation if it is clearly
and conspicuously disclosed that the information
may be communicated among such persons and the
consumer is given the opportunity, before the time
that the information is initially communicated, to di-
rect that such information not be communicated
among such persons.
271
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘information’ means any and all
data, records, or other information and material ob-
tained 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 such term is defined in section 603(b) of
the Fair Credit Reporting Act) who applies for,
maintains, or has maintained an account or credit
relationship with or applied for, purchased or ob-
tained other products or services from any deposi-
tory institution or any affiliate or subsidiary of any
depository institution, regardless of the source of
manner in which the information is obtained or fur-
nished.
‘‘(3) RULE OF CONSTRUCTION.—Any depository
institution, or any affiliate or subsidiary of any de-
pository institution, relying 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 mean-
ing of the Fair Credit Reporting Act or other similar
law.’’.
272
SEC. 443. ELECTRONIC FUND TRANSFER ACT CLARIFICA-
TION.
(a) DEFINITION
OF ACCEPTED CARD
OR OTHER
MEANS OF ACCESS.—Section 903(1) of the Electronic
Fund Transfer Act (15 U.S.C. 1693a(1)) is amended by
inserting before the semicolon at the end the following:
‘‘, but such term does not include a card, device, or com-
puter that a person may use to pay for transactions
through use of value stored on, or assigned to, the card,
device, or computer itself, except for those transactions
where such card, device, or computer is actually used to
access an account to effect such transaction’’.
(b) DEFINITION OF ACCOUNT.—Section 903(2) of
the Electronic Fund Transfer Act (15 U.S.C. 1693a(2))
is amended by inserting before the semicolon at the end
the following: ‘‘and does not include any value which is
stored on, or assigned to, a card, device, or computer itself
that enables a person to pay for transactions through use
of that stored value’’.
SEC. 444. LIMIT ON RESTITUTION FOR TRUTH IN LENDING
VIOLATIONS IF SAFETY AND SOUNDNESS OF
VIOLATOR WOULD BE AFFECTED.
Section 108(e)(3)(A) of the Truth in Lending Act (15
U.S.C. 1607(e)(3)(A)) is amended—
273
(1) by striking ‘‘in any such case, the agency
may require’’ and inserting ‘‘in any such case, the
agency may (i) require’’;
(2) by striking ‘‘, except that with respect to
any transaction consummated after the effective
date of section 608 of the Truth in Lending Sim-
plification and Reform Act, the agency shall’’ and
inserting ‘‘; or (ii)’’; and
(3) by striking ‘‘reasonable,’’ and inserting
‘‘reasonable if, in the case of an agency referred to
in paragraph (1), (2), or (3) of subsection (a), the
agency determines that a partial adjustment or the
making of partial payments over an extended period
is necessary to avoid causing the creditor to become
undercapitalized (as determined in accordance with
regulations prescribed by such agency under section
38 of the Federal Deposit Insurance Act);’’.
Subtitle D—Equal Credit
Opportunity Act Amendments
SEC. 451. SHORT TITLE.
This subtitle may be cited as the ‘‘Equal Credit Op-
portunity Act Amendments of 1995’’.
SEC. 452. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that both the
Equal Credit Opportunity Act (15 U.S.C. 1691, et seq.)
274
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 ad-
verse action is taken on the application. These require-
ments differ in both scope and content and for that reason
are confusing to both the consumer who receives the infor-
mation and the party required to furnish the information.
(b) PURPOSE.—It is the purpose of this subtitle to
combine and simplify the adverse action notification re-
quirements of the Equal Credit Opportunity Act and the
Fair Credit Reporting Act regarding applications for
consumer credit and to make the information that is re-
quired to be furnished more understandable.
SEC. 453. EQUAL CREDIT OPPORTUNITY ACT AMEND-
MENTS.
(a) 
NOTICE
OF
ADVERSE
ACTION.—Section
701(d)(2)(B) of the Equal Credit Opportunity 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 30 days after re-
ceipt by the creditor of a request made
within 60 days after such notification;
275
‘‘(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—
‘‘(I) that fact and the name, ad-
dress, and telephone number of the
consumer reporting agency making
the report;
‘‘(II) the consumer’s right to ob-
tain, under section 612, a free copy of
a consumer report on the consumer,
from the consumer reporting agency
referred to in subclause (I) within the
30-day period provided under such
section; and
‘‘(III) the consumer’s right to
dispute, under section 611, with a
consumer reporting agency the accu-
racy or completeness of any informa-
tion in a consumer report furnished
by the agency.
‘‘(iii) if credit is denied or the charge
for credit is increased either wholly or
partly because of information obtained
276
from a person other than a consumer re-
porting agency bearing upon the consum-
er’s credit worthiness, credit standing,
credit capacity, character, general reputa-
tion, personal characteristics or mode of
living, that fact and the right to receive
disclosure of the nature of the information
so received, within a reasonable period of
time, upon the consumer’s written request
for information within 60 days after learn-
ing of such adverse action; and
‘‘(v) 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) TECHNICAL AND CONFORMING AMENDMENT.—
Section 701(d)(3) of the Equal Credit Opportunity 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, address, and telephone number of
the consumer reporting agency identified in accordance
with the requirements of subsection (d)(3)(ii) and a state-
277
ment of the right to obtain disclosure of the nature of the
information upon which adverse action was taken as re-
quired by such subsection.’’.
(c) REASONABLE PROCEDURES TO ASSURE COMPLI-
ANCE.—Section 706 of the Equal Credit Opportunity Act
(15 U.S.C. 1691e) is amended by adding at the end the
following new subsection:
‘‘(l) REASONABLE PROCEDURES TO ASSURE COM-
PLIANCE.—No person shall be held liable for any violation
of subsection 701(d) if such person shows by a preponder-
ance of the evidence that at the time of the alleged viola-
tion the person maintained reasonable procedures to as-
sure compliance with the provisions of the subsection.’’.
SEC. 454. 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 place 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)’’.
278
SEC. 455. INCENTIVES FOR SELF-TESTING.
(a) EQUAL CREDIT OPPORTUNITY.—
(1) IN
GENERAL.—The Equal Credit Oppor-
tunity Act (15 U.S.C. 1691 et seq.) is amended by
inserting after section 704 the following new section:
‘‘SEC. 704A. INCENTIVES FOR SELF-TESTING AND SELF-
CORRECTION.
‘‘(a) IN GENERAL.—If a creditor—
‘‘(1) conducts, or authorizes an independent
third party to conduct, a self-test of the creditor’s
lending or any part of the creditor’s lending oper-
ations in order to determine the level or effectiveness
of compliance with this title by the creditor; and
‘‘(2) has identified discriminatory practices and
has taken or is taking appropriate corrective actions
to address the discrimination,
any report or results of such a self-test may not be ob-
tained or used by any applicant, department, or agency
in any proceeding or civil action brought under this title.
‘‘(b) RESULTS OF SELF-TESTING.—No provision of
this section shall be construed as preventing an applicant,
department, or agency from obtaining and using the re-
sults of any self-testing in any proceeding or civil action
brought under this title if—
279
‘‘(1) the creditor or any other entity conducted
such activity at the request of a department or agen-
cy;
‘‘(2) the creditor or any other entity, or any
person acting on behalf of the creditor or other en-
tity—
‘‘(A) voluntarily releases or discloses all, or
any part of, such results; or
‘‘(B) refers to or describes such results as
a defense to charges of unlawful discrimination
against such creditor, person, or entity; or
‘‘(3) the results are sought by the applicant, de-
partment, or agency by means of a discovery request
for the purposes of determining an appropriate pen-
alty or remedy for a violation of this title.
‘‘(c) REGULATIONS.—The appropriate Federal de-
partment or agency shall prescribe regulations, after no-
tice and opportunity for comment, which determine what
types of ‘self-tests’ are sufficiently extensive so as to con-
stitute a determination of the level or effectiveness of a
creditor’s compliance with this title.’’.
(2) REFERRALS
TO
THE
ATTORNEY
GEN-
ERAL.—Section 706(g) of the Equal Credit Oppor-
tunity Act (15 U.S.C. 1691e(g)) is amended—
280
(A) by striking ‘‘(g) The agencies’’ and in-
serting ‘‘(g) REFERRALS
TO
THE ATTORNEY
GENERAL.—
‘‘(1) IN GENERAL.—The agencies’’; and
(B) by adding at the end the following new
paragraphs:
‘‘(2) LIMITATION
ON
REFERRALS
OF
SELF-
TESTING RESULTS.—
‘‘(A) IN GENERAL.—No agency shall be re-
quired to refer any report or results of a self-
test relating to any creditor to the Attorney
General if the creditor—
‘‘(i) has already identified discrimina-
tory practices as the result of self-testing
instituted by the creditor to determine
compliance with this title; and
‘‘(ii) has taken or is taking appro-
priate corrective actions to address the dis-
crimination.
‘‘(3) ENFORCEMENT UNDER OTHER LAWS.—No
provision of this section shall be construed as limit-
ing the authority of the agency to enforce the provi-
sions of this title under any other provision of law.’’.
(3) REFERRALS TO HUD.—Section 706(k) of
the Equal Credit Opportunity Act (15 U.S.C.
281
1691e(k)) is amended by adding at the end the fol-
lowing: ‘‘No such agency shall be required to notify
the Secretary of Housing and Urban Development or
the applicant that the agency has reason to believe
that a violation of this title or the Fair Housing Act
occurred if the reason is based on a result of self-
testing instituted by the creditor to determine com-
pliance with this title, and the creditor has already
identified the possible violation and has taken or is
taking appropriate corrective actions to address the
possible violation. No provisions of this section shall
be construed as limiting the authority of the agency
to enforce the provisions of this title under any other
provision of law.’’.
(4) CLERICAL AMENDMENT.—The table of sec-
tions for title VII of the Consumer Credit Protection
Act is amended by inserting after the item relating
to section 704 the following new item:
‘‘704A. Incentives for self-testing and self-correction.’’.
(b) FAIR HOUSING.—The Fair Housing Act (42
U.S.C. 3601 et seq.) is amended by inserting after section
814 the following new section:
‘‘SEC. 814A. SELF-TESTING ENHANCEMENT.
‘‘(a) IN GENERAL.—If any person—
‘‘(1) conducts, or authorizes an independent
third party to conduct, a self-test of that person’s
282
residential real estate related lending activities, or
any part of such activities, in order to determine the
level or effectiveness of compliance with this title by
the person; and
‘‘(2) has identified discriminatory practices and
has taken or is taking appropriate corrective actions
to address the discrimination,
any report or results of such a self-test may not be ob-
tained or used by any aggrieved person, complainant, de-
partment, or agency in any proceeding or civil action
brought under this title.
‘‘(b) RESULTS OF SELF-TESTING.—No provision of
this section shall be construed as preventing an aggrieved
person, complainant, department, or agency from obtain-
ing and using the results of any self-testing as described
in subsection (a) in any proceeding or civil action brought
under this title if—
‘‘(1) the creditor or any other entity conducted
such activity at the request of a department or agen-
cy;
‘‘(2) the creditor or any other entity, or any
person acting on behalf of the creditor or other en-
tity—
‘‘(A) voluntarily releases or discloses all, or
any part of, such results; or
283
‘‘(B) refers to or describes such results as
a defense to charges of unlawful discrimination
against such creditor, person, or entity; or
‘‘(3) the results are sought by the aggrieved
person, complainant, department, or agency by
means of a discovery request for the purposes of de-
termining an appropriate penalty or remedy for a
violation of this title.
‘‘(c) REGULATIONS.—The appropriate Federal de-
partment or agency shall prescribe regulations, after no-
tice and opportunity for comment, which determine what
types of ‘self-tests’ are sufficiently extensive so as to con-
stitute a determination of the level or effectiveness of a
creditor’s compliance with this title.’’.
SEC. 456. CONSULTATION BY ATTORNEY GENERAL RE-
QUIRED IN NONREFERRAL CASES.
(a) EQUAL CREDIT OPPORTUNITY.—Section 706(h)
of the Equal Credit Opportunity Act (15 U.S.C. 1691e(h))
is amended by adding at the end the following new sen-
tence: ‘‘Before bringing a civil action against any creditor
described in paragraph (1), (2), or (3) of section 704(a),
the Attorney General shall consult with the appropriate
agency under such paragraph.’’.
(b) FAIR HOUSING ACT.—Section 814(a) of the Fair
Housing Act (42 U.S.C. 3614(a)) is amended by adding
284
at the end the following new sentence: ‘‘Before bringing
a civil action under the preceding sentence against any
person or group of persons described in paragraph (1),
(2), or (3) of section 704(a) of the Equal Credit Oppor-
tunity Act with respect to a violation of 805(a) of this
title, the Attorney General shall consult with the appro-
priate agency under such paragraph.’’.
SEC. 457. EFFECTIVE DATE.
(a) IN GENERAL.—Except with respect to the re-
quirements of subsection (b), this Act shall take effect at
the end of the 270-day period beginning on the date of
the enactment of this Act.
(b) IMPLEMENTING REGULATIONS.—The Board of
Governors of the Federal Reserve System shall prescribe
regulations to implement this Act and such regulations
shall be published in final form before the end of the 180-
day period beginning on the date of the enactment of this
Act.
Subtitle E—Consumer Leasing Act
Amendments
SEC. 461. SHORT TITLE.
This subtitle may be cited as the ‘‘Consumer Leasing
Act Amendments of 1995’’.
285
SEC. 462. CONGRESSIONAL FINDINGS AND DECLARATION
OF PURPOSE.
(a) FINDINGS.—The Congress finds the following:
(1) Competition among the various financial in-
stitutions 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 of leasing by consum-
ers.
(2) There has been a continued trend toward
leasing automobiles and other durable goods for
consumer use as an alternative to installment credit
sales and that leasing product advances have oc-
curred such that lessors have been unable to provide
consistent industry-wide disclosures to fully account
for the competitive progress that has occurred.
(b) PURPOSES.—
(1) It is the purpose of this subtitle 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 the
consumer and avoid the uninformed use of leasing,
and to protect the consumer against inaccurate and
unfair leasing practices.
(2) To provide for adequate cost disclosures
that reflect the marketplace without impairing com-
286
petition and the development of new leasing prod-
ucts, it is the purpose of this subtitle to provide the
Board with the regulatory authority to assure a sim-
plified, meaningful definition and disclosure of the
terms of certain leases of personal property for per-
sonal, 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 accurate disclosures of
lease terms in advertisements.
SEC. 463. REGULATIONS.
(a) IN GENERAL.—Chapter 5 of title I of the
Consumer Credit Protection Act (15 U.S.C. 1601 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 187. REGULATIONS.
‘‘(a) REGULATIONS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Board shall write reg-
ulations or staff commentary, if appropriate, to up-
date and clarify the requirements and definitions for
lease disclosures, contracts, and any other specific
issues related to consumer leasing which would carry
out the purposes of this chapter, to prevent any cir-
cumvention of the chapter, and to facilitate compli-
ance with the requirements of the chapter.
287
‘‘(2) CLASSIFICATIONS, 
ADJUSTMENTS.—The
regulations prescribed under paragraph (1) may con-
tain classifications and differentiations and may pro-
vide 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
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.—
‘‘(1) IN
GENERAL.—Any regulation of the
Board, or any amendment or interpretation of any
regulation of the Board, that requires a disclosure
different from the disclosures previously required
shall have an effective date of the October 1 that fol-
lows the date of promulgation by at least 6 months.
‘‘(2) LONGER PERIOD.—The Board may, in the
Board’s discretion, lengthen the period of time re-
ferred to in paragraph (1) to permit lessors to ad-
just their forms to accommodate new requirements.
288
‘‘(3) SHORTER PERIOD.—The Board may also
shorten the period of time referred to in paragraph
(1) if the Board makes a specific finding that such
action is necessary to comply with the findings of a
court or to prevent unfair or deceptive practices.
‘‘(4) COMPLIANCE BEFORE EFFECTIVE DATE.—
Lessors may comply with any newly promulgated
disclosure requirement before the effective date of
such requirement.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 5 of title I of the Consumer Credit Protection
Act (15 U.S.C. 1601 et seq.) is amended by inserting after
the item relating to section 186 the following new item:
‘‘187. Regulations.’’.
SEC. 464. CONSUMER LEASE ADVERTISING.
Section 184 of the Consumer Credit Protection Act
(15 U.S.C. 1667c) is amended to read as follows:
‘‘SEC. 184. CONSUMER LEASE ADVERTISING.
‘‘(a) IN
GENERAL.—If an advertisement for a
consumer lease states the amount of any payment or
states that any or no initial payment is required, the ad-
vertisement must also clearly and conspicuously state the
following terms, as applicable:
‘‘(1) That the transaction advertised is a lease.
289
‘‘(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
extra charge may be imposed at the end of the lease
term.
‘‘(b) ADVERTISING
MEDIUM
NOT
LIABLE.—Any
owner or personnel of any medium in which an advertise-
ment appears or through which it is disseminated shall
not be liable under this section.’’.
SEC. 465. STATUTORY PENALTIES.
Section 185(a) of the Consumer Credit Protection
Act (15 U.S.C. 1667d(a)) is amended by adding at the
end the following new sentence: ‘‘Notwithstanding the pre-
ceding sentence, a creditor shall only have liability deter-
mined under section 130(a)(2) for failing to comply with
the requirements of paragraph (2), (8), (9), or (10) of sec-
tion 182 or for failing to comply with disclosure require-
ments under State law for any term which the Board has
determined to be substantially the same in meaning under
290
section 186 as any of the terms referred to in section
182.’’.
TITLE V—STREAMLINING
GOVERNMENT REGULATIONS
Subtitle A—Regulatory Approval
Issues
SEC. 501. STREAMLINED BANK ACQUISITIONS BY WELL
CAPITALIZED AND WELL MANAGED BANKING
ORGANIZATIONS.
Section 3 of the Bank Holding Company Act (12
U.S.C. 1842) is amended by adding at the end the follow-
ing new subsection:
‘‘(h) NO APPROVAL REQUIRED FOR CERTAIN TRANS-
ACTIONS.—
‘‘(1) IN GENERAL.—Notwithstanding paragraph
(3) or (5) of subsection (a) and subject to para-
graphs (5) and (6), an acquisition of shares by a
registered financial services holding company, or a
merger or consolidation between registered financial
services holding companies, shall be deemed ap-
proved at the conclusion of the period specified in
subparagraph (G) if all of the following conditions
have been met:
‘‘(A) FINANCIAL
AND
MANAGERIAL
CRI-
TERIA.—
291
‘‘(i) WELL
CAPITALIZED
FINANCIAL
SERVICES
HOLDING
COMPANY.—Both at
the time of and immediately after the pro-
posed transaction, the acquiring financial
services holding company is well capital-
ized.
‘‘(ii) WELL
CAPITALIZED
LEAD
IN-
SURED
DEPOSITORY
INSTITUTION.—Both
at the time of and immediately after the
proposed transaction, the lead insured de-
pository institution of the acquiring finan-
cial services holding company is well cap-
italized.
‘‘(iii) CAPITAL
OF
OTHER
INSURED
DEPOSITORY INSTITUTIONS.—At the time
of the transaction, well capitalized insured
depository institutions control at least 80
percent of the aggregate total risk-weight-
ed assets of insured depository institutions
controlled by the acquiring financial serv-
ices holding company.
‘‘(iv) 
NO
UNDERCAPITALIZED
IN-
SURED
DEPOSITORY
INSTITUTIONS.—At
the time of the transaction, no insured de-
pository institution controlled by the ac-
292
quiring financial services holding company
is undercapitalized.
‘‘(v) WELL MANAGED.—
‘‘(I) IN GENERAL.—At the time
of the transaction, the acquiring fi-
nancial services holding company, its
lead insured depository institution,
and insured depository institutions
that control at least 90 percent of the
aggregate total risk-weighted assets of
insured depository institutions con-
trolled by such holding company are
well managed.
‘‘(II) NO POORLY MANAGED IN-
STITUTIONS.—Except with respect to
insured depository institutions de-
scribed in paragraph (2), no insured
depository institution controlled by
the acquiring financial services hold-
ing company has received 1 of the 2
lowest composite ratings at the later
of the institution’s most recent exam-
ination or subsequent review.
‘‘(B) NO
UNSATISFACTORY
CRA
RAT-
INGS.—Except with respect to insured deposi-
293
tory institutions described in paragraph (3), no
insured depository institution controlled by the
acquiring financial services holding company
has received a ‘needs to improve’ or ‘substantial
noncompliance’ composite rating as a result of
the institution’s most recent examination under
the Community Reinvestment Act of 1977.
‘‘(C) 
COMPETITIVE
CRITERIA.—Con-
summation of the proposal complies with guide-
lines 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 competi-
tion in any relevant market.
‘‘(D) SIZE OF ACQUISITION.—
‘‘(i) ASSET SIZE.—The book value of
the total assets to be acquired does not ex-
ceed 10 percent of the consolidated total
risk weighted assets of the acquiring finan-
cial services holding 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
financial services holding company.
294
‘‘(E) INTERSTATE
ACQUISITIONS.—Board
approval of the transaction is not prohibited
under subsection (d).
‘‘(F) COMPLIANCE
CRITERION.—During
the 12-month period ending on the date of the
transaction, no administrative enforcement ac-
tion has been commenced, and no cease and de-
sist order has been issued pursuant to section
8 of the Federal Deposit Insurance Act, against
any financial services holding company involved
in the transaction or any depository institution
subsidiary of any such holding company and no
such enforcement action, order, or other admin-
istrative enforcement proceeding is pending as
of such date.
‘‘(G) 
OTHER
CONSIDERATIONS.—Board
approval of the transaction is not prohibited
under subsection (c)(3).
‘‘(H) NOTIFICATION.—The acquiring fi-
nancial services holding company provides writ-
ten notice of the transaction, including a de-
scription of the terms of the transaction, to the
Board and the Attorney General, simulta-
neously, at least 15 business days (or such
295
shorter period as permitted by the Board) be-
fore the transaction is consummated.
‘‘(I) NO BOARD DISAPPROVAL.—Before the
end of the 15-day period (or the shorter period)
referred to in subparagraph (H), the Board has
not required an application under subsection
(a).
‘‘(2) SPECIAL
RULE
RELATING
TO
THE
RE-
QUIREMENT FOR WELL MANAGED INSTITUTIONS.—
Insured depository institutions which have been ac-
quired by a financial services holding company dur-
ing the 12-month period preceding the date of the
transaction may be excluded for purposes of para-
graph (1)(A)(v)(II) if—
‘‘(A) the financial services holding com-
pany has developed a plan for the institution to
restore the capital and management of the in-
stitution which is acceptable to the appropriate
Federal banking agency; and
‘‘(B) all such insured depository institu-
tions represent, in the aggregate, less than 10
percent of the aggregate total risk-weighted as-
sets of all insured depository institutions con-
trolled by the holding company.
296
‘‘(3) SPECIAL
RULE
RELATING
TO
THE
RE-
QUIREMENT
FOR
COMMUNITY
INVESTMENT.—In-
sured depository institutions acquired during the 12-
month period preceding the date of the transaction
may be excluded for purposes of paragraph (1)(B)
if the financial services holding company has devel-
oped a plan to restore the performance of the insti-
tution to at least a ‘satisfactory’ rating under the
Community Reinvestment Act of 1977 which is ac-
ceptable to the appropriate Federal banking agency.
‘‘(4) ADJUSTMENT
OF
PERCENTAGES.—The
Board may by regulation adjust the percentages and
the manner in which the percentages of insured de-
pository institutions are calculated under subpara-
graph (A)(v)(I) or (D) of paragraph (1) or para-
graph (2)(B) if the Board determines that such ad-
justment is consistent with safety and soundness
and the purposes of this Act.
‘‘(5) ADVICE
OF
ATTORNEY
GENERAL.—The
Attorney General shall advise the Board during the
period referred to in paragraph (1)(H) in writing if
any competitive concerns exist with respect to the
transaction.
‘‘(6) WAIVER OF POSTAPPROVAL WAITING PE-
RIOD.—If the Attorney General advises the Board
297
that no competitive concerns exist with respect to
the transaction, the provisions of section 11(b) relat-
ing to a postapproval waiting shall not apply with
respect to such transaction.’’.
SEC. 502. ELIMINATE FILING AND APPROVAL REQUIRE-
MENTS FOR INSURED DEPOSITORY INSTITU-
TIONS ALREADY CONTROLLED BY THE SAME
HOLDING COMPANY.
(a) BANK MERGER ACT.—Section 18(c) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1828(c)) is amend-
ed by adding at the end the following new paragraph:
‘‘(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
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,
consolidation, or acquisition were approved
under this subsection;
298
‘‘(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 agen-
cy does not require the institution to submit an
application with respect to such transaction and
so notifies the institution.’’.
(b) NATIONAL BANK CONSOLIDATION AND MERGER
ACT.—
(1) CONSOLIDATIONS.—Section 2 of the Na-
tional Bank Consolidation and Merger Act (12
U.S.C. 215) 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 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)—
299
(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)—
(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’’.
300
SEC. 503. ELIMINATE REDUNDANT APPROVAL REQUIRE-
MENT FOR OAKAR TRANSACTIONS.
(a) IN GENERAL.—Section 5(d)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amend-
ed—
(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
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 amended by subparagraph (A) of this para-
graph) as clauses (i) and (ii), respectively; and
(3) by striking subparagraph (G) and redesig-
nating the subsequent subparagraphs accordingly.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 5156A(b)(1) of the Revised Statutes of the United
301
States (12 U.S.C. 215c(b)(1)) is amended by striking
‘‘section 5(d)(3) of the Federal Deposit Insurance Act or’’.
(c) CLERICAL AMENDMENT.—The heading for sec-
tion 5(d)(3)(E) of the Federal Deposit Insurance Act (12
U.S.C. 1815(d)(3)(E)) is amended by striking ‘‘FOR AP-
PROVAL, GENERALLY’’.
SEC. 504. ELIMINATION OF DUPLICATIVE REQUIREMENTS
IMPOSED UPON FINANCIAL SERVICES HOLD-
ING 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 FINANCIAL SERVICES HOLD-
ING COMPANIES.—This section shall not apply to a finan-
cial services holding company that is subject to the Finan-
cial Services Holding Company Act of 1995 or any com-
pany controlled by such financial services holding company
(other than a savings association).’’.
(b) DEFINITION OF SAVINGS AND LOAN HOLDING
COMPANY.—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:
302
‘‘(D) SAVINGS AND LOAN HOLDING COM-
PANY.—
‘‘(i) IN
GENERAL.—Except as pro-
vided 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
FINANCIAL
SERVICES HOLDING COMPANY.—The term
‘savings and loan holding company’ does
not include any company which is reg-
istered under, and subject to, the provi-
sions of the Financial Services Holding
Company Act of 1995, or any company di-
rectly or indirectly controlled by such com-
pany.’’.
(c) AMENDMENTS TO THE BANK HOLDING COMPANY
ACT OF 1956.—Section 4(i) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1843(i)) is amended by add-
ing at the end the following new paragraphs:
‘‘(4) SOLICITATION OF VIEWS.—
‘‘(A) NOTICE TO DIRECTOR.—Upon receiv-
ing any application or notice by a financial
304
spection report, additional examination mate-
rials, or supervisory information relating to any
financial services holding company which di-
rectly or indirectly controls a savings associa-
tion.
‘‘(6) COORDINATION
OF
ENFORCEMENT
EF-
FORTS.—The Board and the Director shall cooper-
ate in any enforcement action against any financial
services holding company which controls a savings
association, if the relevant conduct involves such as-
sociation.
‘‘(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 amend-
ed—
(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
paragraph:
‘‘(8) ALTERNATIVE TEST.—Any savings asso-
ciation which meets the requirements set forth in
section 7701(a)(19)(C) of the Internal Revenue
305
Code of 1986 shall be deemed to be a qualified thrift
lender.’’.
SEC. 505. 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)) (as amended by section
118(f)(6)(A) of this Act) 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. 506. 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 ‘‘(i) No branch’’ and inserting
‘‘(i) RELOCATION.—
‘‘(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 or
306
subsection (b) or (c), the consent and approval of
the Comptroller of the Currency shall not be re-
quired for a national bank to establish and operate,
or to retain and operate, a branch or seasonal agen-
cy if—
‘‘(A) the bank is well capitalized (as de-
fined in section 38 of the Federal Deposit In-
surance Act and regulations prescribed by the
Comptroller of the Currency 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;
‘‘(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
otherwise authorized to grant approval under
this section to such bank to establish and oper-
ate, or to retain and operate, a branch or sea-
sonal agency at the proposed location.
307
‘‘(3) CERTAIN
BRANCHES
DEEMED
TO
HAVE
APPROVED
APPLICATIONS.—A branch or seasonal
agency established by a national bank under para-
graph (2) shall be deemed to have been established
and operated 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
preceding 2 sentences, the approval of the Board shall not
be required for a State member bank to establish and op-
erate a branch or seasonal agency if—
‘‘(A) the State member bank is well-cap-
italized (as defined in section 38 of the Federal
Deposit Insurance Act and regulations pre-
scribed by the Board under such section);
‘‘(B) the State member 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);
‘‘(C) the State member bank did not re-
ceive a ‘needs to improve’ or ‘substantial non-
compliance’ composite rating at its most recent
308
examination under the Community Reinvest-
ment 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.
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 de-
fined 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
309
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
examination under the Community Reinvest-
ment 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 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. 507. ELIMINATE BRANCH APPLICATIONS AND RE-
QUIREMENTS FOR ATMs AND SIMILAR FA-
CILITIES.
(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
310
(2) by adding at the end the following new
paragraph:
‘‘(2) CERTAIN
PROPRIETARY
ATMS
AND
RE-
MOTE SERVICING UNITS.—The term ‘branch’ does
not include any automated teller machine or remote
service unit which is owned and operated by a depos-
itory institution—
‘‘(A) primarily for the benefit of the insti-
tution 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
REMOTE SERVICING UNITS.—The term ‘domes-
tic branch’ does not include any automated tell-
er machine or remote service unit which is
311
owned and operated by a depository institu-
tion—
‘‘(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.
‘‘(2) FOREIGN BRANCH.—The term’’.
SEC. 508. 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: ‘‘or, in the case of a bank which re-
ceived 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 imme-
diately following the investment or loan, is well capitalized
(as defined under section 38 of the Federal Deposit Insur-
ance Act), the amount which is equal to 150 percent of
the capital stock and surplus of such bank’’.
312
SEC. 509. 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—
‘‘(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 bank-
ing agency may waive the requirement of this section
by regulation or on a case-by-case basis consistent
with safety and soundness.’’.
SEC. 510. INCREASE IN CERTAIN CREDIT UNION LOAN
CEILINGS.
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’’.
313
Subtitle B—Streamlining of Gov-
ernment 
Regulations; 
Mis-
cellaneous Provisions
SEC. 521. 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 amend-
ed by section 506(a) of this Act), (j) (as amended
by section 507(a) of this Act), (k), and (l) as sub-
sections (h), (i), (j), and (k), respectively.
SEC. 522. 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 merg-
er, consolidation, purchase, assumption, or
other method; and
314
‘‘(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
‘‘(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
315
‘‘(II) subsection (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 ex-
emption 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
subsection (a) shall apply as if such amendment had been
included in section 42 of the Federal Deposit Insurance
Act as of the date of the enactment of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
SEC. 523. 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
316
(2) by adding after subsection (a) the following
new subsection:
‘‘(b) SMALL MARKET SHARE EXEMPTION.—
‘‘(1) IN GENERAL.—This section shall not be
construed as prohibiting a management official of a
depository 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
holding companies with which the management offi-
cial serves hold, together with all the affiliates of
such institutions or holding companies, in the aggre-
gate no more that 20 percent of the deposits in each
relevant geographic banking market where offices of
the depository 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
Federal Reserve System;
‘‘(B) if the Board has not defined such
boundaries, the area defined by the boundaries
317
of the Ranally Metropolitan Area in which the
office of the depository institution or the depos-
itory institution holding company is located;
and
‘‘(C) if the office of such institution or
company is not located within a Ranally Metro-
politan 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 Man-
agement Interlocks Act (12 U.S.C. 3203) is amended to
read as follows:
‘‘SEC. 204. DUAL SERVICE AMONG LARGER ORGANIZA-
TIONS.
‘‘(a) IN GENERAL.—If a depository institution, de-
pository institution holding company, or depository insti-
tution affiliate of any such institution or company has
total assets exceeding $2,500,000,000, a management offi-
cial of such institution, company, or affiliate may not serve
as a management official of any other depository institu-
tion, depository institution holding company, or depository
institution affiliate of any such institution or company
which—
318
‘‘(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 Work-
ers published 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) in subsection (b), by striking the 2d sen-
tence; and
(3) by striking subsection (c).
(d) RULES OR REGULATIONS.—Section 209 of the
Depository 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 regula-
tions which permit service by a management official
319
which would otherwise be prohibited by section 203
or section 204,’’ after ‘‘title’’; and
(3) by striking subsections (b) and (c).
SEC. 524. 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
Secretary shall deposit such funds in the general fund of
the Treasury.
SEC. 525. 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.—
(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), re-
spectively, and moving the left margins of such
clauses 2 ems to the right;
320
(B) 
by 
striking 
‘‘(2) 
PREFERENTIAL
TERMS PROHIBITED.—A member bank’’ and in-
serting ‘‘(2) PREFERENTIAL
TERMS
PROHIB-
ITED.—
‘‘(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 Reserve Act (12 U.S.C. 375b(8)(B)) is
amended to read as follows:
‘‘(B) EXCEPTION.—The Board may, by
regulation, make exceptions to subparagraph
(A) for an executive officer or director of a sub-
sidiary of a company that controls the member
bank if—
321
‘‘(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
assets of a company that controls the
member bank and such subsidiary (and is
not controlled 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 fol-
lowing: ‘‘The Board shall specify by regulation the
recordkeeping required of member banks to ensure
compliance 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
(B) by redesignating paragraphs (7), (8),
and (10) as paragraphs (8), (9), and (10), re-
spectively.
322
(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 EXECU-
TIVE 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
paragraphs (2), (3), and (4)’’ and inserting ‘‘of any
category referred to in paragraph (2), (3), (4), (5),
or (6)’’;
(2) by redesignating paragraphs (4) and (5) as
paragraphs (6) and (7), respectively;
(3) by inserting after paragraph (3) the follow-
ing new paragraph:
323
‘‘(4) HOME
EQUITY
LINES
OF
CREDIT.—A
member bank may make a revolving open-end exten-
sion of credit to any executive officer of the bank if
the credit—
‘‘(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 res-
idence.
‘‘(5) LOANS
SECURED
BY
MARKETABLE
AS-
SETS.—A member bank may extend credit to any
executive 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. 
526. 
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—
(1) by redesignating paragraph (9) as para-
graph (10);
324
(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
increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers published by
the Bureau 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—
(1) the examination system provided for in such
section is in place; and
325
(2) such system provides for full coordination of
examinations of State depository institutions with
State bank supervisors.
SEC. 527. 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. 528. 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.’’.
326
SEC. 529. 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 deposi-
tory institution’’ and ‘‘appropriate Federal banking agen-
cy’’ have the same meanings as in section 3 of the Federal
Deposit Insurance Act and the term ‘‘insured credit
union’’ has the same meaning as in section 101(7) of the
Federal Credit Union Act.
SEC. 530. 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
Treasury shall revise the regulation under section 15C of
the Securities Exchange Act of 1934 relating to the obli-
gations of financial institutions and of brokers and dealer
registered under such Act holding custody of securities
327
subject to a repurchase agreement to confirm, daily and
in writing, the securities that are subject to such repur-
chase agreement. Such revision shall permit the
counterparty to such agreement to waive in writing the
right to obtain such daily written confirmation if the
counterparty has received a clear and conspicuous disclo-
sure before entering into any side agreement, in a form
prescribed by the Secretary, that adequately informs the
counterparty of the benefits of receiving such daily written
confirmations.
SEC. 531. 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 ‘‘Coun-
cil’’) and each appropriate Federal banking agency (as de-
fined in section 3(q) of the Federal Deposit Insurance
Act) represented on the Council shall conduct a review of
all regulations prescribed by the Council or by any such
agency, respectively, in order to identify outdated or other-
wise unnecessary regulatory requirements imposed upon
insured depository institutions.
(b) PROCESS.—In conducting the review under sub-
section (a), the Council or the appropriate Federal bank-
ing agency shall—
328
(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 sub-
section (a) not less frequently than once every 10 years.
(d) REGULATORY RESPONSE.—The Council or the
appropriate Federal banking agency shall—
(1) publish in the Federal Register a summary
of the comments received under this section, identi-
fying significant issues raised and providing com-
ment 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—
329
(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
regulation, or whether such burdens must be ad-
dressed by legislative action.
SEC. 532. COUNTRY RISK REQUIREMENTS.
Subsections (a)(1) and (b) of section 905 of the
International Lending Supervision Act of 1983 (12 U.S.C.
3904) are amended by striking ‘‘shall’’ and inserting
‘‘may’’.
SEC. 533. 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
330
(C) by redesignating subsections (d), (f),
(g), (h), (i), and (j) as subsections (c), (d), (e),
(f), (g), and (h), respectively.
(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 pre-
ceding sentence, the Corporation and the appro-
priate Federal banking agencies may designate cer-
tain information as privileged and confidential and
not available to the public.’’.
(b) EXEMPTION
FOR
WELL-CAPITALIZED
AND
WELL-MANAGED
INSURED
DEPOSITORY
INSTITU-
TIONS.—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
INSTITU-
TIONS.—No provision of this section other than subsection
(c) shall apply with respect to any insured depository insti-
tution which is well-capitalized and well-managed.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (1)(B) of section 36(e) of the
Federal Deposit Insurance Act (as so redesignated
331
by subsection (a)(1)(C) of this section) is amended
by striking ‘‘(b)(2), (c), and (d)’’ and inserting
‘‘(b)(2) and (c)’’.
(2) Paragraph (1) of section 36(g) of the Fed-
eral Deposit Insurance Act (as so redesignated by
subsection (a)(1)(C) of this section) is amended by
striking ‘‘(d)’’ and inserting ‘‘(c)’’.
SEC. 534. STANDARDS FOR DIRECTOR AND OFFICER LI-
ABILITY.
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. 535. FOREIGN BANK APPLICATIONS.
(a) PROVISIONS RELATING TO ESTABLISHMENT OF
BANK OFFICES.—Section 7(d) of the International Bank-
ing 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’’;
332
(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
paragraphs:
‘‘(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 regu-
lation on a consolidated basis by the appro-
priate authorities in its home country, the
Board may nevertheless approve an application
under paragraph (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 oper-
333
ations of the proposed branch, agency, or com-
mercial lending company subsidiary, including
restrictions on sources of funding, as are con-
sidered appropriate in the public interest.
‘‘(C) MODIFICATION
OF
CONDITIONS.—
Any condition or restriction imposed by the
Board under this subsection in connection with
the approval of an application may be varied or
withdrawn 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
INFORMA-
TION.—The Board may deny any application if
it has not received information requested from
the applicant foreign bank or appropriate au-
334
thorities in the home country in sufficient time
to permit the Board to evaluate such informa-
tion adequately within the time periods for final
action set forth in subparagraph (A).
‘‘(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 amend-
ed—
(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.—
335
(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’’;
(B) by inserting ‘‘or a Federal branch or
agency’’ after ‘‘commercial lending company
subsidiary’’ 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. 536. 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-
336
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:
‘‘(C) ON-SITE EXAMINATION.—Each Fed-
eral branch or agency, and each State branch
or agency, of a foreign bank shall be subject to
on-site examination by a Federal banking agen-
cy or State bank supervisor as frequently as
would a national bank or State bank, respec-
tively, by its appropriate Federal banking agen-
cy.’’; and
(3) by amending subparagraph (D) to read as
follows:
‘‘(D) COST OF EXAMINATIONS.—The cost
of any examination undertaken pursuant to
subparagraph (A) shall be assessed against and
collected from the foreign bank or the foreign
company 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.’’.
337
SEC. 537. 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’’.
(b) EFFECT ON PENDING CASES.—Any administra-
tive 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. 538. 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—
338
‘‘(A) the bank has given the Corporation
written notice of the bank’s intention to engage
in such activity at least 60 days before com-
mencing to engage in the activity and within
such 60-day period (or within the extended pe-
riod provided under paragraph (2)) the Cor-
poration has not disapproved the activity; and
‘‘(B) the State bank is, and continues to
be, in compliance with applicable capital stand-
ards 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 sub-
mitted by a State bank under paragraph (1)(A) shall
contain such information as the Corporation may re-
quire.
‘‘(4) BASIS FOR DISAPPROVAL.—The Corpora-
tion may disapprove an activity for a State bank
under this subsection unless the Corporation deter-
mines that the activity would pose no significant risk
to the appropriate insurance fund.’’.
339
(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—
‘‘(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 disapproved 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.
340
‘‘(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
paragraph unless the Corporation determines
that the activity would pose no significant risk
to the appropriate insurance fund.’’.
SEC. 539. 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. 540. 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 fol-
lowing new subsection:
‘‘(a) SHORT TITLE.—This Act may be cited as the
‘Bank Service Company Act’.’’;
341
(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:
‘‘(7) the term ‘limited liability company’ means
any company organized under the law of a State (as
342
defined in section 3 of the Federal Deposit Insur-
ance Act) which provides that a member or manager
of such company is not personally liable for a debt,
obligation, or liability of the company solely by rea-
son 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’’.
(d) AMENDMENTS TO SECTION 3.—Section 3 of the
Bank Service Corporation Act (12 U.S.C. 1863) is amend-
ed—
343
(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 mem-
bers’’ after ‘‘shareholders’’ each place such term ap-
pears;
(3) in subsections (c) and (d), by inserting ‘‘or
member’’ after ‘‘shareholder’’ each place such term
appears;
(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’’;
(C) by striking ‘‘its State bank shareholder
or shareholders’’ and inserting ‘‘any share-
344
holder 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 Financial Services Holding
Company Act of 1995)’’ 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—
345
(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 institu-
tion’’ 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. 541. 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 cor-
poration organized under this section. The aggregate
amount of stock held by any national bank in all corpora-
tions engaged in business of the kind described in this sec-
tion 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 per-
cent of the capital and surplus of such bank.’’.
SEC. 542. 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 Deposit Insurance Act) shall submit to the Com-
mittee on Banking and Financial Services of the House
of Representatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate a report on the ac-
347
tions taken and to be taken by the agency to eliminate
or conform inconsistent or duplicative accounting and re-
porting requirements applicable to reports or statements
filed with any such agency by insured depository institu-
tions, as required by section 121 of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
SEC. 543. WAIVERS AUTHORIZED FOR RESIDENCY RE-
QUIREMENT FOR NATIONAL BANK DIREC-
TORS.
The 1st sentence of section 5146 of the Revised Stat-
utes of the United States (12 U.S.C. 72) is amended by
inserting ‘‘(1) the Comptroller of the Currency may, in
the Comptroller’s discretion, waive the residency require-
ment in the case of any director of a national bank to
whom the requirement would otherwise apply, and (2)’’
after ‘‘except that’’.
TITLE VI—LENDER LIABILITY
SEC. 601. LENDER LIABILITY.
(a) PARTICIPATION IN MANAGEMENT.—
(1) IN GENERAL.—It is the sense of Congress
that a person who holds indicia of ownership pri-
marily to protect the person’s security interest in a
vessel or facility should not be considered to have
participated in management, as that term is used in
section 101(20) of the Comprehensive Environ-
348
mental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9601(20)), unless the person—
(A) exercises decisionmaking control over
the borrower’s environmental compliance such
that the person has undertaken responsibility
for the hazardous substance handling or dis-
posal practices of the vessel or facility; or
(B) exercises control at a level comparable
to that of a manager of the borrower’s vessel or
facility such that the person has assumed or
manifested responsibility for the overall man-
agement of the vessel or facility encompassing
day-to-day decisionmaking over either environ-
mental compliance or over the operational, as
opposed to financial and administrative, aspects
of the vessel or facility.
(2) 
OPERATIONAL
ASPECTS
DEFINED.—In
paragraph (1)(B), the term ‘‘operational aspects’’
includes functions such as those of a facility or plant
manager, operations manager, chief operating offi-
cer, or chief executive officer.
(b) EXCLUSIONS.—It is further the sense of Congress
that the term ‘‘participation in management’’ as used in
such section 101(20) should not include any of the follow-
ing:
349
(1) The mere capacity to influence, or ability to
influence, or the unexercised right to control vessel
or facility operations.
(2) Any act of a security interest holder to re-
quire another person to comply with applicable laws
or to respond lawfully to disposal of any hazardous
substance.
(3) Conducting an act or failing to act prior to
the time that a security interest is created in a ves-
sel or facility.
(4) Holding a security interest in a vessel or fa-
cility or abandoning or releasing such a security in-
terest.
(5) Including in the terms of an extension of
credit, or in a contract or security agreement relat-
ing to such an extension, covenants, warranties, or
other terms and conditions that relate to environ-
mental compliance.
(6) Monitoring or enforcing the terms and con-
ditions of the extension of credit or security interest.
(7) Monitoring or undertaking 1 or more in-
spections of the vessel or facility.
(8) Under section 107(d) of the Comprehensive
Environmental Response, Compensation, and Liabil-
ity Act of 1980, or under the direction of an on-
350
scene coordinator, conducting a response action or
other lawful means of addressing the release or
threatened release of a hazardous substance in con-
nection with the vessel or facility prior to, during, or
upon the expiration of the term of the extension of
credit.
(9) Providing financial or other advice or coun-
seling in an effort to mitigate, prevent, or cure de-
fault or diminution in the value of the vessel or facil-
ity.
(10) Restructuring, renegotiating, or otherwise
agreeing to alter the terms and conditions of the ex-
tension of credit or security interest or exercising
forbearance.
(11) Exercising other remedies that may be
available under applicable law for the breach of any
term or condition of the extension of credit or secu-
rity agreement.
(12) Holding legal or equitable title acquired by
a security interest holder through foreclosure or its
equivalent primarily to protect a security interest
provided that the holder undertakes to sell, re-lease,
or otherwise divest the property in a reasonably ex-
peditious manner on commercially reasonable terms,
351
taking into account market conditions and legal and
regulatory requirements.
(c) SECURITY INTEREST.—It is further the sense of
Congress that the term ‘‘security interest’’ as used in such
section 101(20) should include rights under a mortgage,
deed of trust, assignment, judgment, lien, pledge, security
agreement, factoring agreement, lease, or any other right
accruing to person to secure the repayment of money, the
performance of a duty, or some other obligation.
(d) MISCELLANEOUS.—It is further the sense of the
Congress that the potential Superfund liability of fidu-
ciaries and the potential Resource Conservation and Re-
covery Act liability of lenders and fiduciaries should be
addressed by the Congress.
TITLE VII—ANNUAL STUDY AND
REPORT 
ON 
IMPACT 
ON
LENDING 
TO 
SMALL 
BUSI-
NESS
SEC. 701. ANNUAL STUDY AND REPORT.
Not later than 12 months after the date of the en-
actment of this Act, and annually thereafter, the Board
of Governors of the Federal Reserve System, the Director
of the Office of Thrift Supervision, the Comptroller of the
Currency, and the Board of Directors of the Federal De-
posit Insurance Corporation shall jointly conduct a study
352
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.
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