sidiary 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 bank
holding company provides written notice of the
transaction, including a description of the terms
of the transaction, to the Board and the Attor-
ney General, simultaneously, at least 15 busi-
ness days (or such shorter period as permitted
by the Board) before the transaction is con-
summated.
‘‘(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).
‘‘(J) PUBLIC NOTICE.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the acquiring financial
services holding company publishes notice
of the application in a newspaper of gen-
eral circulation in the affected communities
at least 30 days before consummation of
the transaction.
‘‘(ii) EXCEPTION IN CASE OF COMPLI-
ANCE WITH APPROVED STRATEGIC PLAN.—
Clause (i) shall not apply with respect to
a financial services holding company re-
ferred to in such clause if, at the time of
the transaction, the lead insured depository
institution of such holding company, and
insured depository institutions that control
at least 80 percent of the aggregate total
risk-weighted assets of insured depository
institutions controlled by such holding
company, have received a rating of ‘satis-
factory’ or better in the most recent eval-
uation of compliance with strategic plans
which have been—
‘‘(I) submitted by such institu-
tions to the appropriate Federal fi-
nancial supervisory agency (as defined
in section 803(1) of the Community
Reinvestment Act of 1977) in accord-
ance 
with 
regulations 
prescribed
under the Community Reinvestment
Act of 1977; and
‘‘(II) approved by each such
agency.
‘‘(2) SPECIAL
RULE
RELATING
TO
THE
RE-
QUIREMENT FOR WELL MANAGED INSTITUTIONS.—
Insured depository institutions which have been ac-
quired by a bank holding company during the 12-
month period preceding the date of the transaction
may be excluded for purposes of paragraph
(1)(A)(v)(II) if—
‘‘(A) the bank holding company has devel-
oped a plan for the institution to restore the
capital and management of the institution
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.
‘‘(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 bank holding company has developed a plan to
restore the performance of the institution to at least
a ‘satisfactory’ rating under the Community Rein-
vestment Act of 1977 which is acceptable to the ap-
propriate 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
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. 203. 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;
‘‘(C) either—
‘‘(i) the insured depository institutions
involved in the transaction—
‘‘(I) have received a rating of
‘satisfactory’ or better in meeting
community credit needs pursuant to
section 807 of the Community Rein-
vestment Act of 1977 during the most
recent examination of such institu-
tions; and
‘‘(II) publish notice of the pro-
posed transaction in a newspaper of
general circulation in the affected
communities at least 30 days before
consummation of the transaction; or
‘‘(ii) the insured depository institu-
tions have received a rating of ‘satisfac-
tory’ or better in the most recent evalua-
tion of compliance with strategic plans
which have been—
‘‘(I) submitted by the institutions
to the appropriate Federal banking
agency in accordance with regulations
prescribed under the Community Re-
investment Act of 1977; and
‘‘(II) approved by the agency;
‘‘(D) the acquiring, assuming, or resulting
institution provides written notification of the
transaction to the appropriate Federal banking
agency for the institution at least 20 days prior
to consummation of the transaction; and
‘‘(E) 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)—
(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’’.
SEC. 204. 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
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. 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
COMPA-
NIES.—This section shall not apply to a bank holding com-
pany 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).’’.
(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:
‘‘(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 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
Holding 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 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 bank holding
company to acquire directly or indirectly a sav-
ings association under subsection (c)(8), the
Board shall solicit the Director’s comments and
recommendations with respect to such acquisi-
tion.
‘‘(B) COMMENT PERIOD.—The comments
and views of the Director under subparagraph
(A) with respect to any acquisition subject to
such subparagraph shall be transmitted to the
Board within 30 days of the receipt by the Di-
rector of the notice relating to such acquisition
(or such shorter period as the Board may speci-
fy if the Board advises the Director that an
emergency exists which requires expeditious ac-
tion).
‘‘(5) EXAMINATION.—
‘‘(A) SCOPE.—The Board shall consult
with the Director, as appropriate, in establish-
ing the scope of an examination by the Board
of a bank holding company that controls di-
rectly or indirectly a savings association.
‘‘(B) ACCESS TO INSPECTION REPORTS.—
Upon the request of the Director, the Board
shall furnish the Director with a copy of any in-
spection report, additional examination mate-
rials, or supervisory information relating to any
bank holding company which directly or indi-
rectly controls a savings association.
‘‘(6) COORDINATION
OF
ENFORCEMENT
EF-
FORTS.—The Board and the Director shall cooper-
ate in any enforcement action against any bank
holding company which controls a savings associa-
tion, if the relevant conduct involves such associa-
tion.
‘‘(7) DIRECTOR
DEFINED.—For purposes of
this section, the term ‘Director’ means the Director
of the Office of Thrift Supervision.’’.
(d) ALTERNATIVE TEST.—
(1) IN GENERAL.—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
Code of 1986 shall be deemed to be a qualified thrift
lender.’’.
(2) CONFORMING AMENDMENTS.—Section 5(r)
of the Home Owners’ Loan Act (12 U.S.C. 1464(r))
is amended—
(A) in the 1st sentence of paragraph (1),
by inserting ‘‘, qualifies as a qualified thrift
lender under section 10(m),’’ after ‘‘Internal
Revenue Code of 1986’’;
(B) in the second sentence of paragraph
(1), by inserting ‘‘or as a qualified thrift lender
under section 10(m)’’ before the period;
(C) by striking subparagraph (C) of para-
graph (2) and inserting the following new sub-
paragraph:
‘‘(C) the law of the State in which the
branch is or is to be located would permit es-
tablishment of the branch were the association
an institution of the savings association or sav-
ings bank type chartered by the State in which
the home office of such institution is located;
or’’.
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.—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
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) either—
‘‘(i) the bank—
‘‘(I) has received a rating of ‘sat-
isfactory’ or better in meeting commu-
nity credit needs pursuant to section
807 of the Community Reinvestment
Act of 1977 during the most recent
examination of such bank; and
‘‘(II) publishes notice of the
bank’s intention to establish and oper-
ate, or retain and operate, a branch
or seasonal agency at the proposed lo-
cation in a newspaper of general cir-
culation in the affected communities
at least 30 days before consummation
of the transaction; or
‘‘(ii) the bank has received a rating of
‘satisfactory’ or better in the most recent
evaluation of compliance with a strategic
plan which has been—
‘‘(I) submitted by the bank to the
Comptroller of the Currency in ac-
cordance with regulations prescribed
under the Community Reinvestment
Act of 1977; and
‘‘(II) approved by the Comptrol-
ler of the Currency; 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.
‘‘(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) either—
‘‘(i) the State member bank—
‘‘(I) has received a rating of ‘sat-
isfactory’ or better in meeting commu-
nity credit needs pursuant to section
807 of the Community Reinvestment
Act of 1977 during the most recent
examinations of such bank; and
‘‘(II) publishes notice of the
bank’s intention to establish and oper-
ate, or retain and operate, a branch
or seasonal agency at the proposed lo-
cation in a newspaper of general cir-
culation in the affected communities
at least 30 days before consummation
of the transaction; or
‘‘(ii) the State member bank has re-
ceived a rating of ‘satisfactory’ or better in
the most recent evaluation of compliance
with a strategic plan which has been—
‘‘(I) submitted by the bank to the
Board in accordance with regulations
prescribed under the Community Re-
investment Act of 1977; and
‘‘(II) approved by the Board; 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
equivalent rating under a comparable rating
system) as of its most recent examination;
‘‘(C) either—
‘‘(i) the bank—
‘‘(I) has received a rating of ‘sat-
isfactory’ or better in meeting commu-
nity credit needs pursuant to section
807 of the Community Reinvestment
Act of 1977 during the most recent
examinations of such bank; and
‘‘(II) publishes notice of the
bank’s intention to establish and oper-
ate, or retain and operate, a branch
or seasonal agency at the proposed lo-
cation in a newspaper of general cir-
culation in the affected communities
at least 30 days before consummation
of the transaction; or
‘‘(ii) the bank has received a rating of
‘satisfactory’ or better in the most recent
evaluation of compliance with a strategic
plan which has been—
‘‘(I) submitted by the bank to the
Corporation in accordance with regu-
lations prescribed under the Commu-
nity Reinvestment Act of 1977; and
‘‘(II) approved by the Corpora-
tion; 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. 208. 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
(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
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. 209. ELIMINATE REQUIREMENT FOR APPROVAL OF IN-
VESTMENTS IN BANK PREMISES FOR WELL
CAPITALIZED AND WELL MANAGED BANKS.
Section 24A of the Federal Reserve Act (12 U.S.C.
371d) is amended by inserting before the period in that
section the following: ‘‘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’’.
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—
‘‘(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. 211. STREAMLINING PROCESS FOR DETERMINING
NEW NONBANKING ACTIVITIES.
Section 4(c)(8) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(8)) is amended by striking
‘‘and opportunity for hearing’’.
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 addi-
tional exemptions if, in the Board’s judgment, such
extension would not be detrimental to the public in-
terest and either 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 company, but the aggregate dura-
tion of such extensions shall not extend 10 years’’.
SEC. 213. 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’’.
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 amend-
ed by section 207(a) of this Act), (j) (as amended
by section 208(a) of this Act), (k), and (l) as sub-
sections (h), (i), (j), and (k), respectively.
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 merg-
er, 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
‘‘(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
section 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. 223. AMENDMENTS TO THE DEPOSITORY INSTITU-
TIONS MANAGEMENT INTERLOCKS ACT.
(a) DUAL SERVICE IN SAME AREA, TOWN, OR VIL-
LAGE.—Section 203 of the Depository Institution Man-
agement Interlocks Act (12 U.S.C. 3202) is amended—
(1) by inserting ‘‘(a) PROHIBITIONS.—’’ before
‘‘A management official’’; and
(2) by adding after subsection (a) the following
new subsection:
‘‘(b) SMALL MARKET SHARE EXEMPTION.—
‘‘(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
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—
‘‘(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
which would otherwise be prohibited by section 203
or section 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
Secretary shall deposit such funds in the general fund of
the Treasury.
SEC. 225. CONSTRAINTS ON EMPLOYEE-WIDE BENEFIT
PLANS AND HOME EQUITY LOANS.
(a) AMENDMENTS TO SECTION 22(h) OF THE FED-
ERAL RESERVE ACT.—
(1) EMPLOYEE-WIDE BENEFIT PLANS.—Section
22(h)(2) of the Federal Reserve Act (12 U.S.C.
375b(2)) is amended—
(1) by redesignating subparagraphs (A) through
(C) as clauses (i) through (iii), respectively, and in-
denting the left margins of such clauses appro-
priately;
(2) by striking ‘‘(2) PREFERENTIAL
TERMS
PROHIBITED.—’’ and inserting the following:
‘‘(2) PREFERENTIAL TERMS PROHIBITED.—
‘‘(A) IN GENERAL.—’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) EXCEPTION.—No provision of this
paragraph shall be construed as prohibiting any
extension of credit made pursuant to a benefit
or compensation program—
‘‘(i) that is widely available to employ-
ees of the member bank; and
‘‘(ii) that does not give preference to
any officer, director, or principal share-
holder of the member bank, or to any re-
lated interest of such person, over other
employees of the member 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—
‘‘(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) UNNECESSARY REPORTING REQUIREMENTS.—
Section 22(g) of the Federal Reserve Act (12 U.S.C.
375a) is amended—
(1) by striking paragraph (6);
(2) by redesignating paragraphs (7), (8), (9),
and (10) as paragraphs (6), (7), (8), and (9), re-
spectively; and
(3) in paragraph (8) (as so redesignated by
paragraph (1) of this subsection)—
(A) by striking ‘‘include with (but not as
part of) each report of condition and copy
thereof filed under section 7(a)(3) of the Fed-
eral Deposit Insurance Act’’ and inserting
‘‘submit a semiannual’’; and
(B) by striking ‘‘previous report of condi-
tion’’ and inserting ‘‘previous semiannual re-
port’’.
(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:
‘‘(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—
100
‘‘(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 with a fair market
value of not less than the amount which is equal to
200 percent of any credit so extended.’’; 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—
(1) by redesignating paragraph (9) as para-
graph (10);
(2) by redesignating the second of the 2 para-
graphs designated as paragraph (8) as paragraph
(9); and