I
107TH CONGRESS
2D SESSION
H. R. 3951
To provide regulatory relief and improve productivity for insured depository
institutions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 13, 2002
Mrs. CAPITO (for herself, Mr. SANDLIN, Mr. OXLEY, and Mr. BACHUS) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services
A BILL
To provide regulatory relief and improve productivity for
insured depository institutions, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Financial Services Regulatory Relief Act of 2002’’.
(B) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—NATIONAL BANK PROVISIONS
Sec. 101. National bank directors.
Sec. 102. Voting in shareholder elections.
Sec. 103. Simplifying dividend calculations for national banks.
Sec. 104. Repeal of obsolete limitation on removal authority of the Comptroller
of the Currency.
Sec. 105. Repeal of intrastate branch capital requirements.
Sec. 106. Clarification of waiver of publication requirements for bank merger
notices.
TITLE II—SAVINGS ASSOCIATION PROVISIONS
Sec. 201. Parity for savings associations under the Securities Exchange Act of
1934 and the Investment Advisers Act of 1940.
Sec. 202. Investments by Federal savings associations authorized to promote
the public welfare.
Sec. 203. Merger and consolidation of Federal savings associations with non-
depository institution affiliates.
Sec. 204. Repeal of statutory dividend notice requirement for savings associa-
tion subsidiaries of savings and loan holding companies.
Sec. 205. Modernizing statutory authority for trust ownership of savings asso-
ciations.
Sec. 206. Repeal of overlapping rules governing purchased mortgage servicing
rights.
Sec. 207. Expanded authority for Federal savings associations to invest in
small business investment companies.
TITLE III—CREDIT UNION PROVISIONS
Sec. 301. Privately insured credit unions authorized to become members of a
Federal home loan bank.
Sec. 302. Leases of land on Federal facilities for credit unions.
Sec. 303. Investments in securities by Federal credit unions.
Sec. 304. Increase in general 12-year limitation of term of Federal credit union
loans to 15 years.
Sec. 305. Increase in 1 percent investment limit in credit union service organi-
zations.
Sec. 306. Member business loan exclusion for loans to nonprofit religious orga-
nizations.
Sec. 307. Sale of checks to persons in the field of membership of the credit
union.
Sec. 308. Voluntary mergers and conversions involving multiple common-bond
credit unions without numerical limitation.
TITLE IV—DEPOSITORY INSTITUTION PROVISIONS
Sec. 401. Easing restrictions on interstate branching and mergers.
Sec. 402. Statute of limitations for judicial review of appointment of a receiver
for depository institutions.
Sec. 403. Reporting requirements relating to insider lending.
Sec. 404. Amendment to provide an inflation adjustment for the small deposi-
tory institution exception under the Depository Institution
Management Interlocks Act.
Sec. 405. Enhancing the safety and soundness of insured depository institu-
tions.
TITLE V—DEPOSITORY INSTITUTION AFFILIATES PROVISIONS
Sec. 501. Clarification of cross marketing provision.
Sec. 502. Amendment to provide the Federal Reserve Board with discretion
concerning the imputation of control of shares of a company
by trustees.
Sec. 503. Eliminating geographic limits on thrift service companies.
TITLE VI—BANKING AGENCY PROVISIONS
Sec. 601. Waiver of examination schedule in order to allocate examiner re-
sources.
Sec. 602. Credit card accounts permitted for bank examiners on same terms as
other consumers.
Sec. 603. Interagency data sharing.
Sec. 604. Unauthorized participation by convicted individual at uninsured de-
pository institutions subject to penalty.
Sec. 605. Amendment permitting the destruction of old records of a depository
institution by the FDIC after the appointment of the FDIC as
receiver.
Sec. 606. Modernization of FDIC recordkeeping requirement.
Sec. 607. Repeal of minimum antitrust review period with the agreement of the
Attorney General.
Sec. 608. Clarification of extent of suspension, removal, and prohibition author-
ity of Federal banking agencies in cases of certain crimes by
institution-affiliated parties.
Sec. 609. Streamlining depository institution merger application requirements.
Sec. 610. Inclusion of Director of the Office of Thrift Supervision in list of
banking agencies regarding insurance customer protection reg-
ulations.
TITLE VII—CLERICAL AND TECHNICAL AMENDMENTS
Sec. 701. Clerical amendments to the Home Owners’ Loan Act.
Sec. 702. Technical corrections to the Federal Credit Union Act.
TITLE I—NATIONAL BANK
PROVISIONS
SEC. 101. NATIONAL BANK DIRECTORS.
Section 5146 of the Revised Statutes of the United
States (12 U.S.C. 72) is amended—
(1) by striking ‘‘SEC. 5146. Every director
must during’’ and inserting the following:
‘‘SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS.
‘‘(a) RESIDENCY REQUIREMENTS.—Every director of
a national bank shall, during’’;
(2) by striking ‘‘total number of directors.
Every director must own in his or her own right’’
and inserting ‘‘total number of directors.
‘‘(b) INVESTMENT REQUIREMENT.—
‘‘(1) IN
GENERAL.—Every director of a na-
tional bank shall own in, his or her own right,’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) EXCEPTION FOR SUBORDINATED DEBT IN
CERTAIN
CASES.—In lieu of the requirements of
paragraph (1) relating to the ownership of capital
stock in the national bank, the Comptroller of the
Currency may, by regulation or order, permit an in-
dividual to serve as a director of a national bank
that has elected, or notifies the Comptroller of the
bank’s intention to elect, to operate as a S corpora-
tion pursuant to section 1362(a) of the Internal
Revenue Code of 1986, if that individual holds debt
of at least $1,000 issued by the national bank that
is subordinated to the interests of depositors and
other general creditors of the national bank.’’.
SEC. 102. VOTING IN SHAREHOLDER ELECTIONS.
Section 5144 of the Revised Statutes of the United
States (12 U.S.C. 61) is amended—
(1) by striking ‘‘or to cumulate’’ and inserting
‘‘or, if so provided by the articles of association of
the national bank, to cumulate’’;
(2) by striking the comma after ‘‘his shares
shall equal’’; and
(3) by adding at the end the following new sen-
tence: ‘‘The Comptroller of the Currency may pre-
scribe such regulations to carry out the purposes of
this section as the Comptroller determines to be ap-
propriate.’’.
SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS FOR NA-
TIONAL BANKS.
Section 5199 of the Revised Statutes of the United
States (12 U.S.C. 60) is amended to read as follows:
‘‘SEC. 5199. NATIONAL BANK DIVIDENDS.
‘‘(a) IN GENERAL.—Subject to subsection (b), the di-
rectors of any national bank may declare a dividend of
so much of the undivided profits of the bank as the direc-
tors judge to be expedient.
‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIR-
CUMSTANCES.—A national bank may not declare and pay
dividends in any year in excess of an amount equal to the
sum of the total of the net income of the bank for that
year and the retained net income of the bank in the pre-
ceding two years, minus any transfers required by the
Comptroller of the Currency (including any transfers re-
quired to be made to a fund for the retirement of any
preferred stock), unless the Comptroller of the Currency
approves the declaration and payment of dividends in ex-
cess of such amount.’’.
SEC. 104. REPEAL OF OBSOLETE LIMITATION ON REMOVAL
AUTHORITY OF THE COMPTROLLER OF THE
CURRENCY.
Section 8(e)(4) of the Federal Deposit Insurance Act
(12 U.S.C. 1818(e)(4)) is amended by striking the 5th
sentence.
SEC. 105. REPEAL OF INTRASTATE BRANCH CAPITAL RE-
QUIREMENTS.
Section 5155(c) of the Revised Statutes of the United
States (12 U.S.C. 36(c)) is amended—
(1) in the 2nd sentence, by striking ‘‘, without
regard to the capital requirements of this section,’’;
and
(2) by striking the last sentence.
SEC. 106. CLARIFICATION OF WAIVER OF PUBLICATION RE-
QUIREMENTS FOR BANK MERGER NOTICES.
The last sentence of sections 2(a) and 3(a)(2) of the
National Bank Consolidation and Merger Act (12 U.S.C.
215(a) and 215a(a)(2), respectively) are each amended to
read as follows: ‘‘Publication of notice may be waived if
the Comptroller determines that an emergency exists justi-
fying such waiver or if the shareholders of the association
or State bank agree by unanimous action to waive the pub-
lication requirement for their respective institutions.’’.
TITLE II—SAVINGS ASSOCIATION
PROVISIONS
SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE
SECURITIES EXCHANGE ACT OF 1934 AND
THE INVESTMENT ADVISERS ACT OF 1940.
(a) SECURITIES EXCHANGE ACT OF 1934.—
(1) DEFINITION OF BANK.—Section 3(a)(6) of
the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(6)) is amended by striking ‘‘(A) a banking
institution organized under the laws of the United
States’’ and inserting ‘‘(A) a depository institution
(as defined in section 3 of the Federal Deposit In-
surance Act) or a branch or agency of a foreign
bank (as such terms are defined in section 1(b) of
the International Banking Act of 1978)’’.
(2) INCLUDE OTS UNDER THE DEFINITION OF
APPROPRIATE REGULATORY AGENCY FOR CERTAIN
PURPOSES.—Section 3(a)(34) of such Act (15
U.S.C. 78c(a)(34)) is amended—
(A) in subparagraph (A)—
(i) in clause (ii), by striking ‘‘(i) or
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’;
(ii) by striking ‘‘and’’ at the end of
clause (iii);
(iii) by redesignating clause (iv) as
clause (v); and
(iv) by inserting the following new
clause after clause (iii):
‘‘(iv) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b)) the deposits of which are
insured by the Federal Deposit Insurance
Corporation, a subsidiary or a department
or division of any such savings association,
or a savings and loan holding company;
and’’;
(B) in subparagraph (B)—
(i) in clause (ii), by striking ‘‘(i) or
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’;
(ii) by striking ‘‘and’’ at the end of
clause (iii);
(iii) by redesignating clause (iv) as
clause (v); and
(iv) by inserting the following new
clause after clause (iii):
‘‘(iv) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b)) the deposits of which are
insured by the Federal Deposit Insurance
Corporation, or a subsidiary of any such
savings association, or a savings and loan
holding company; and’’;
(C) in subparagraph (C)—
(i) in clause (ii), by striking ‘‘(i) or
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’;
(ii) by striking ‘‘and’’ at the end of
clause (iii);
(iii) by redesignating clause (iv) as
clause (v); and
(iv) by inserting the following new
clause after clause (iii):
‘‘(iv) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b)) the deposits of which are
insured by the Federal Deposit Insurance
Corporation, a savings and loan holding
company, or a subsidiary of a savings and
loan holding company when the appro-
priate regulatory agency for such clearing
agency is not the Commission; and’’;
(D) in subparagraph (D)—
(i) by striking ‘‘and’’ at the end of
clause (ii);
(ii) by redesignating clause (iii) as
clause (iv); and
(iii) by inserting the following new
clause after clause (ii):
‘‘(iii) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance
Corporation; and’’;
(E) in subparagraph (F)—
(i) by redesignating clauses (ii), (iii),
and (iv) as clauses (iii), (iv), and (v), re-
spectively; and
(ii) by inserting the following new
clause after clause (i):
‘‘(ii) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance
Corporation; and’’; and
(F) at the end of the last undesignated
paragraph, by inserting the following new sen-
tence: ‘‘As used in this paragraph, the term
‘savings and loan holding company’ has the
meaning given it in section 10(a) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(a)).’’.
(b) INVESTMENT ADVISERS ACT OF 1940.—
(1) DEFINITION OF BANK.—Section 202(a)(2)
of the Investment Advisers Act of 1940 (15 U.S.C.
80b–2(a)(2)) is amended by striking ‘‘(A) a banking
institution organized under the laws of the United
States’’ and inserting ‘‘(A) a depository institution
(as defined in section 3 of the Federal Deposit In-
surance Act) or a branch or agency of a foreign
bank (as such terms are defined in section 1(b) of
the International Banking Act of 1978)’’.
(2) CONFORMING
AMENDMENTS.—Subsections
(a)(1)(A)(i), (a)(1)(B), (a)(2), and (b) of section
210A of such Act (15 U.S.C. 80b–10a), as added by
section 220 of the Gramm-Leach-Bliley Act, are
each amended by striking ‘‘bank holding company’’
each place it occurs and inserting ‘‘bank holding
company or savings and loan holding company’’.
(c) CONFORMING AMENDMENT TO THE INVESTMENT
COMPANY ACT OF 1940.—Section 10(c) of the Investment
Company Act of 1940 (15 U.S.C. 80a–10(c)), as amended
by section 213(c) of the Gramm-Leach-Bliley Act, is
amended by inserting after ‘‘1956)’’ the following: ‘‘or any
one savings and loan holding company (together with its
affiliates and subsidiaries) (as such terms are defined in
section 10 of the Home Owners’ Loan Act)’’.
SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA-
TIONS AUTHORIZED TO PROMOTE THE PUB-
LIC WELFARE.
(a) IN GENERAL.—Section 5(c)(3) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding
at the end the following new subparagraph:
‘‘(E) DIRECT INVESTMENTS TO PROMOTE
THE PUBLIC WELFARE.—
‘‘(i) IN GENERAL.—A Federal savings
association may make investments de-
signed primarily to promote the public wel-
fare, including the welfare of low- and
moderate-income communities through the
provision of housing, services, and jobs.
‘‘(ii) DIRECT INVESTMENTS OR ACQUI-
SITION
OF
INTEREST
IN
OTHER
COMPA-
NIES.—Investments under clause (i) may
be made directly or by purchasing interests
in an entity primarily engaged in making
such investments.
‘‘(iii) PROHIBITION ON UNLIMITED LI-
ABILITY.—No investment may be made
under this subparagraph which would sub-
ject a Federal savings association to unlim-
ited liability to any person.
‘‘(iv) SINGLE
INVESTMENT
LIMITA-
TION
TO
BE
ESTABLISHED
BY
DIREC-
TOR.—Subject to clauses (v) and (vi), the
Director shall establish, by order, limits
on—
‘‘(I) the amount each savings as-
sociation may invest in any one
project or entity; and
‘‘(II) the aggregate amount of
the investment of such savings asso-
ciation under this subparagraph.
‘‘(v) FLEXIBLE AGGREGATE INVEST-
MENT
LIMITATION.—The 
aggregate
amount of investments of any savings asso-
ciation under this subparagraph may not
exceed an amount equal to the sum of 5
percent of the savings association’s capital
stock actually paid in and unimpaired and
5 percent of the savings association’s
unimpaired surplus, unless—
‘‘(I) the Director determines, by
order, that the savings association is
adequately capitalized; and
‘‘(II) the Federal Deposit Insur-
ance 
Corporation 
determines, 
by
order, that an investment in a higher
amount than the limit under this
clause will pose no significant risk to
the affected deposit insurance fund.
‘‘(vi) MAXIMUM AGGREGATE INVEST-
MENT
LIMITATION.—The 
aggregate
amount of investments of any savings asso-
ciation under this subparagraph may not
exceed an amount equal to the sum of 10
percent of the savings association’s capital
stock actually paid in and unimpaired and
10 percent of the savings association’s
unimpaired surplus.
‘‘(vii) INVESTMENTS NOT SUBJECT TO
OTHER
LIMITATION
ON
QUALITY
OF
IN-
VESTMENTS.—No obligation a Federal sav-
ings association acquires under this sub-
paragraph shall be taken into account for
purposes of the limitation contained in sec-
tion 28(d) of the Federal Deposit Insur-
ance Act on the acquisition and retention
of any corporate debt security not of in-
vestment grade.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 5(c)(3)(A) is amended to read as follows:
‘‘(A) Repealed’’.
SEC. 203. MERGER AND CONSOLIDATION OF FEDERAL SAV-
INGS ASSOCIATIONS WITH NONDEPOSITORY
INSTITUTION AFFILIATES.
Section 5(d)(3) of the Home Owners’ Loan Act (12
U.S.C. 1464(d)(3)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) MERGERS AND CONSOLIDATION WITH
NONDEPOSITORY INSTITUTION AFFILIATES.—
‘‘(i) IN GENERAL.—Upon the approval
of the Director, a Federal savings associa-
tion may merge with any nondepository in-
stitution affiliate of the savings associa-
tion.
‘‘(ii) RULE
OF
CONSTRUCTION.—No
provision of clause (i) shall be construed
as—
‘‘(I) affecting the applicability of
section 18(c) of the Federal Deposit
Insurance Act; or
‘‘(II) granting a Federal savings
association any power or any author-
ity to engage in any activity that is
not authorized for a Federal savings
association under any other provision
of this Act or any other provision of
law.’’.
SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE-
QUIREMENT FOR SAVINGS ASSOCIATION SUB-
SIDIARIES OF SAVINGS AND LOAN HOLDING
COMPANIES.
Section 10(f) of the Home Owners’ Loan Act (12
U.S.C. 1467a(f)) is amended to read as follows:
‘‘(f) DECLARATION
OF DIVIDEND.—The Director
may—
‘‘(1) require a savings association that is a sub-
sidiary of a savings and loan holding company to
give prior notice to the Director of the intent of the
savings association pay a dividend on its guaranty,
permanent, or other nonwithdrawable stock; and
‘‘(2) establish conditions on the payment of
dividends.’’.
SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR
TRUST OWNERSHIP OF SAVINGS ASSOCIA-
TIONS.
(a) IN GENERAL.—Section 10(a)(1)(C) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is
amended—
(1) by striking ‘‘trust,’’ and inserting ‘‘business
trust,’’; and
(2) by inserting ‘‘, or any other trust unless by
its terms it must terminate within 25 years or not
later than 21 years and 10 months after the death
of individuals living on the effective date of the
trust,’’ after or similar organization,’’.
SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING
PURCHASED MORTGAGE SERVICING RIGHTS.
Section 5(t) of the Home Owners’ Loan Act (12
U.S.C. 1464(t)) is amended—
(1) by striking paragraph (4) and inserting the
following new paragraph:
‘‘(4) Repealed’’; and
(2) in paragraph (9)(A), by striking ‘‘intangible
assets, plus’’ and all that follows through the period
at the end and inserting ‘‘intangible assets.’’.
SEC. 207. EXPANDED AUTHORITY FOR FEDERAL SAVINGS
ASSOCIATIONS TO INVEST IN SMALL BUSI-
NESS INVESTMENT COMPANIES.
Subparagraph (D) of section 5(c)(4) of the Home
Owners’ Loan Act (12 U.S.C. 1464(c)(4)) is amended to
read as follows:
‘‘(D) SMALL BUSINESS INVESTMENT COM-
PANIES.—Any Federal savings association may
invest in 1 or more small business investment
companies, or in any entity established to invest
solely in small business investment companies,
except that the total amount of investments
under this subparagraph may not at any time
exceed the amount equal to 5 percent of capital
and surplus of savings association.’’.
TITLE III—CREDIT UNION
PROVISIONS
SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR-
IZED TO BECOME MEMBERS OF A FEDERAL
HOME LOAN BANK.
Section 4(a) of the Federal Home Loan Bank Act
(12 U.S.C. 1424(a)) is amended by adding at the end the
following new paragraph:
‘‘(5) CERTAIN
PRIVATELY
INSURED
CREDIT
UNIONS.—A credit union which has been deter-
mined, in accordance with section 43(e)(1) of the
Federal Deposit Insurance Act, to meet all eligibility
requirements for Federal deposit insurance shall be
treated as an insured depository institution for pur-
poses of determining the eligibility of such credit
union for membership in a Federal home loan bank
under paragraphs (1), (2), and (3).’’.
SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR
CREDIT UNIONS.
(a) IN GENERAL.—Section 124 of the Federal Credit
Union Act (12 U.S.C. 1770) is amended—
(1) by striking ‘‘Upon application by any credit
union’’ and inserting ‘‘Notwithstanding any other
provision of law, upon application by any credit
union’’;
(2) by inserting ‘‘on lands reserved for the use
of, and under the exclusive or concurrent jurisdiction
of, the United States or’’ after ‘‘officer or agency of
the United States charged with the allotment of
space’’;
(3) by inserting ‘‘lease land or’’ after ‘‘such of-
ficer or agency may in his or its discretion’’; and
(4) by inserting ‘‘or the facility built on the
lease land’’ after ‘‘credit union to be served by the
allotment of space’’.
(b) CLERICAL AMENDMENT.—The heading for sec-
tion 124 is amended by inserting ‘‘OR FEDERAL LAND’’
after ‘‘BUILDING’’.
SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED-
IT UNIONS.
Section 107 of the Federal Credit Union Act (12
U.S.C. 1757(7)(K)) is amended—
(1) in the matter preceding paragraph (1) by
striking ‘‘A Federal credit union’’ and inserting ‘‘(a)
IN GENERAL.—Any Federal credit union’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) INVESTMENT FOR THE CREDIT UNION’S OWN
ACCOUNT.—
‘‘(1) IN GENERAL.—A Federal credit union may
purchase and hold for its own account such invest-
ment securities as the Board may authorize by regu-
lation, subject to such limitations and restrictions as
the Board may prescribe in the regulations.
‘‘(2) PERCENTAGE
LIMITATION.—In no event
may the total amount of investment securities of any
single obligor or maker held by a Federal credit
union for the credit union’s own account exceed at
any time an amount equal to 10 percent of the
unimpaired capital and surplus of the credit union.
‘‘(3) INVESTMENT SECURITY DEFINED.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, the term ‘investment security’
means marketable obligations evidencing the in-
debtedness of any person in the form of bonds,
notes, or debentures and other instruments
commonly referred to as investment securities.
‘‘(B) FURTHER DEFINITION BY BOARD.—
The Board may further define the term ‘invest-
ment security’.
‘‘(4) CLARIFICATION
OF
PROHIBITION
ON
STOCK
OWNERSHIP.—No provision of this sub-
section shall be construed as authorizing a Federal
credit union to purchase shares of stock of any cor-
poration for the credit union’s own account, except
as otherwise permitted by law.’’.
SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF
TERM OF FEDERAL CREDIT UNION LOANS TO
15 YEARS.
Section 107(a)(5) of the Federal Credit Union Act
(12 U.S.C. 1757(5)) (as so designated by section 303 of
this title) is amended—
(1) in the matter preceding subparagraph (A),
by striking ‘‘to make loans, the maturities of which
shall not exceed twelve years except as otherwise
provided herein’’ and inserting ‘‘to make loans, the
maturities of which shall not exceed 15 years or any
longer maturity as the Board may allow, in regula-
tions, except as otherwise provided in this Act’’;
(2) in subparagraph (A), by striking clause(ii);
(3) by redesignating clauses (iii) through (x) as
clauses (ii) through (ix), respectively; and
(4) by inserting ‘‘and’’ after the semicolon at
the end of clause (viii) (as so redesignated).
SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN
CREDIT UNION SERVICE ORGANIZATIONS.
Section 107(a)(7)(I) of the Federal Credit Union Act
(12 U.S.C. 1757(7)(I)) (as so designated by section 303
of this title) is amended by striking ‘‘up to 1 per centum
of the total paid’’ and inserting ‘‘up to 3 percent of the
total paid’’.
SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS
TO NONPROFIT RELIGIOUS ORGANIZATIONS.
Section 107A(a) of the Federal Credit Union Act (12
U.S.C. 1757a(a)) is amended by inserting ‘‘, excluding
loans made to nonprofit religious organizations,’’ after
‘‘total amount of such loans’’.
SEC. 307. SALE OF CHECKS TO PERSONS IN THE FIELD OF
MEMBERSHIP OF THE CREDIT UNION.
Subsection (a) (as so designated by section 303 of
this title) of section 107 of the Federal Credit Union Act
(12 U.S.C. 1757) is amended—
(1) by redesignating paragraphs (13), (14),
(15), (16), and (17) as paragraphs (14), (15), (16),
(17), and (18), respectively; and
(2) by inserting after paragraph (12) the fol-
lowing new paragraph:
‘‘(13) in accordance with rules and regulations
prescribed by the Board, to sell to persons in the
field of membership of the credit union negotiable
checks (including travelers checks), and to cash
checks for persons in the field of membership, for a
fee;’’.
SEC. 308. VOLUNTARY MERGERS AND CONVERSIONS IN-
VOLVING MULTIPLE COMMON-BOND CREDIT
UNIONS WITHOUT NUMERICAL LIMITATION.
(a) IN GENERAL.—Section 109 of the Federal Credit
Union Act (12 U.S.C. 1759) is amended by adding at the
end the following new subsection:
‘‘(h) MERGER OR CONVERSIONS INVOLVING MUL-
TIPLE COMMON-BOND CREDIT UNIONS.—In the case of—
‘‘(1) a merger involving a Federal credit union
described in subsection (b)(2) approved by the
Board on or after August 7, 1998; or
‘‘(2) a conversion of a Federal credit union de-
scribed in subsection (b)(2) to a credit union de-
scribed in subsection (b)(3) and approved by the
Board on or after August 7, 1998,
the numerical limitation contained in subsection (d)(1)
shall not apply to such merger or conversion, and the re-
sulting Federal credit union may retain in the membership
field of such credit union all groups that were served by
a merging or converting Federal credit union at the time
of the merger or conversion.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 109(d)(1) of the Federal Credit
Union Act (12 U.S.C. 1759(d)(1)) is amended by in-
serting ‘‘and subsection (h)’’ after ‘‘provided in
paragraph (2)’’.
(2) Section 109(d)(2) of the Federal Credit
Union Act (12 U.S.C. 1759(d)(2)) is amended—
(A) by inserting ‘‘or’’ after the semicolon
at the end of subparagraph (A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
TITLE IV—DEPOSITORY
INSTITUTION PROVISIONS
SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCH-
ING AND MERGERS.
(a) DE NOVO INTERSTATE BRANCHES OF NATIONAL
BANKS.—
(1) IN GENERAL.—Section 5155(g)(1) of the
Revised Statutes of the United States (12 U.S.C.
36(g)(1)) is amended by striking ‘‘maintain a
branch if—‘ and all that follows through the end of
subparagraph (B) and inserting ‘‘maintain a
branch.’’.
(2) CLERICAL AMENDMENT.—The heading for
subsection (g) of section 5155 of the Revised Stat-
utes of the United States is amended by striking
‘‘STATE ‘OPT-IN’ ELECTION TO PERMIT’’.
(b) DE NOVO INTERSTATE BRANCHES OF STATE
NONMEMBER BANKS.—
(1) IN GENERAL.—Section 18(d)(4)(A) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1828(d)(4)(A)) is amended by striking ‘‘maintain a
branch if—‘ and all that follows through the end of
clause (ii) and inserting ‘‘maintain a branch.’’.
(2) CLERICAL AMENDMENT.—The heading for
paragraph (4) of section 18(d) of the Federal De-
posit Insurance Act is amended by striking ‘‘STATE
‘OPT-IN’ ELECTION TO PERMIT INTERSTATE’’ and in-
serting ‘‘INTERSTATE’’.
(c) DE NOVO INTERSTATE BRANCHES OF STATE
MEMBER BANKS.—The 3rd undesignated paragraph of
section 9 of the Federal Reserve Act (12 U.S.C. 321) is
amended by adding at the end the following new sen-
tences: ‘‘A State member bank may establish and operate
a de novo branch in a host State (as such terms are de-
fined in section 18(d) of the Federal Deposit Insurance
Act) on the same terms and conditions and subject to the
same limitations and restrictions as are applicable to the
establishment of a de novo branch of a national bank in
a host State under section 5155(g) of the Revised Statutes
of the United States. Such section 5155(g) shall be ap-
plied for purposes of the preceding sentence by sub-
stituting ‘Board of Governors of the Federal Reserve Sys-
tem’ for ‘Comptroller of the Currency’ and ‘State member
bank’ for ‘national bank’.’’.
(d) INTERSTATE MERGER OF BANKS.—
(1) MERGER
OF
INSURED
BANK
AND
NON-
INSURED
BANK.—Section 44(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1831u(a)(1)) is
amended)—
(1) by striking ‘‘After June 1, 1997, the’’ and
inserting ‘‘The’’; and
(2) by inserting ‘‘or between an insured bank
and a noninsured bank with different home States,’’
after ‘‘insured banks with different home States,’’.
(2) NONUNISURED
NATIONAL
BANK
MERGER
WITH OTHER NONINSURED BANK.—Subsection (b)
of section 4 of the National Bank Consolidation and
Merger Act (12 U.S.C. 215a–1(b)) is amended to
read as follows:
‘‘(b) MERGER
OF NONINSURED NATIONAL BANK
WITH ANOTHER NONINSURED BANK.—A noninsured na-
tional bank may engage in a consolidation or merger with
any non-insured out-of-State bank, whether such out-of-
State bank is a national bank or a State bank.’’.
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 44 of the Federal Deposit Insurance
Act (12 U.S.C. 1931u) is amended—
(A) in subsection (a), by striking para-
graphs (5) and (6);
(B) in subsection (e), by striking ‘‘para-
graph (2), (4), or (5)’’ and inserting ‘‘para-
graph (2) or (4)’’; and
(C) in subsection (g)(10), by striking ‘‘sec-
tion 18(c)(2)’’ and inserting ‘‘paragraph (1) or
(2) of section 18(c)’’.
(2) Section 3(d) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842(d)) is amended—
(A) in paragraph (1)—
(i) by striking subparagraphs (B) and
(C); and
(ii) by redesignating subparagraph
(D) as subparagraph (B); and
(B) in paragraph (5), by striking ‘‘sub-
paragraph (B) or (D)’’ and inserting ‘‘subpara-
graph (B)’’.
(3) Subsection (c) of section 4 of the National
Bank Consolidation and Merger Act (12 U.S.C.
215a–1(c)) is amended—
(A) by striking ‘‘(c) DEFINITIONS.—The
terms’’ and inserting the following:
‘‘(c) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) HOME STATE; OUT-OF-STATE BANK.—The
terms’’; and
(B) by adding at the end the following new
paragraphs:
‘‘(2) NONINSURED NATIONAL BANK.—The term
‘noninsured national bank’ means a national bank
that is a noninsured bank.
‘‘(3) NONINSURED
BANK.—The term ‘non-
insured bank’ has the same meaning as in section
3(h) of the Federal Deposit Insurance Act.’’.
SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW
OF APPOINTMENT OF A RECEIVER FOR DE-
POSITORY INSTITUTIONS.
(a) NATIONAL BANKS.—Section 2 of the National
Bank Receivership Act (12 U.S.C. 191) is amended—
(1) by striking ‘‘SECTION 2. The Comptroller of
the Currency’’ and inserting the following:
‘‘SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL
BANK.
‘‘(a) IN GENERAL.—The Comptroller of the Cur-
rency’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) JUDICIAL REVIEW.—If the Comptroller of the
Currency appoints a receiver under subsection (a), the na-
tional bank may, within 30 days thereafter, bring an ac-
tion in the United States district court for the judicial dis-
trict in which the home office of such bank is located, or
in the United States District Court for the District of Co-
lumbia, for an order requiring the Comptroller of the Cur-
rency to remove the receiver, and the court shall, upon
the merits, dismiss such action or direct the Comptroller
of the Currency to remove the receiver.’’.
(b) INSURED DEPOSITORY INSTITUTIONS.—Section
11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C.
1821(c)(7)) is amended to read as follows:
‘‘(7) JUDICIAL REVIEW.—If the Corporation is
appointed (Including the appointment of the Cor-
poration as receiver by the Board of Directors) as
conservator or receiver of a depository institution
under paragraph (4), (9), or (10), the depository in-
stitution may, within 30 days thereafter, bring an
action in the United States district court for the ju-
dicial district in which the home office of such de-
pository institution is located, or in the United
States District Court for the District of Columbia,
for an order requiring the Corporation to be re-
moved as the conservator or receiver (regardless of
how such appointment was made), and the court
shall, upon the merits, dismiss such action or direct
the Corporation to be removed as the conservator or
receiver.’’.
(c) EXPANSION OF PERIOD FOR CHALLENGING THE
APPOINTMENT
OF
A LIQUIDATING AGENT.—Subpara-
graph (B) of section 207(a)(1) of the Federal Credit
Union Act (12 U.S.C. 1787(a)(1)) is amended by striking
‘‘10 days’’ and inserting ‘‘30 days’’.
(d) EFFECTIVE DATE.—The amendments made by
subsections (a), (b), and (c) shall apply with respect to
conservators, receivers, or liquidating agents appointed on
or after the date of the enactment of this Act.
SEC. 403. REPORTING REQUIREMENTS RELATING TO IN-
SIDER LENDING.
(a) REPORTING REQUIREMENTS REGARDING LOANS
TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section
22(g) of the Federal Reserve Act (12 U.S.C. 375a) is
amended—
(1) by striking paragraphs (6) and (9); and
(2) by redesignating paragraphs (7), (8), and
(10) as paragraphs (6), (7), and (8), respectively.
(b) REPORTING REQUIREMENTS REGARDING LOANS
FROM CORRESPONDENT BANKS TO EXECUTIVE OFFI-
CERS AND SHAREHOLDERS OF INSURED BANKS.—Section
106(b)(2) of the Bank Holding Company Act Amend-
ments of 1970 (12 U.S.C. 1972(2)) is amended—
(1) by striking subparagraph (G); and
(2) by redesignating subparagraphs (H) and (I)
as subparagraphs (G) and (H), respectively.
SEC. 404. AMENDMENT TO PROVIDE AN INFLATION AD-
JUSTMENT FOR THE SMALL DEPOSITORY IN-
STITUTION EXCEPTION UNDER THE DEPOSI-
TORY 
INSTITUTION 
MANAGEMENT 
INTER-
LOCKS ACT.
Section 203(1) of the Depository Institution Manage-
ment Interlocks Act (12 U.S.C. 3202(1)) is amended by
striking ‘‘$20,000,000’’ and inserting ‘‘$100,000,000’’.
SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF IN-
SURED DEPOSITORY INSTITUTIONS.
(a) CLARIFICATION RELATING TO THE ENFORCE-
ABILITY OF AGREEMENTS AND CONDITIONS.—The Fed-
eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) is
amended by adding at the end the following new section:
‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS.
(a) IN GENERAL.—Notwithstanding clause (i) or (ii)
of section 8(b)(6)(A) or section 38(e)(2)(E), an appro-
priate Federal banking agency may enforce, under section
8, the terms of—
‘‘(1) any condition imposed in writing by the
agency on a depository institution or an institution-
affiliated party (including a bank holding company)
in connection with the granting of any application or
other request concerning a depository institution; or
‘‘(2) any written agreement entered into be-
tween the agency and an institution-affiliated party
(including a bank holding company).
‘‘(b) RECEIVERSHIPS
AND CONSERVATORSHIPS.—
After the appointment of the Corporation as the receiver
or conservator for any insured depository institution, the
Corporation may enforce any condition or agreement de-
scribed in paragraph (1) or (2) of subsection (a) involving
such institution or any institution-affiliated party (includ-
ing a bank holding company), through an action brought
in an appropriate United States district court.’’.
(b) PROTECTION OF CAPITAL OF INSURED DEPOSI-
TORY INSTITUTIONS.—Paragraph (1) of section 18(u) of
the Federal Deposit Insurance Act (12 U.S.C. 1828(u))
is amended by striking subparagraph (B) and by redesig-
nating subparagraph (C) as subparagraph (B).
TITLE V—DEPOSITORY INSTITU-
TION 
AFFILIATES 
PROVI-
SIONS
SEC. 501. CLARIFICATION OF CROSS MARKETING PROVI-
SION.
Section 4(n)(5) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(n)(5)(A)) is amended—
(1) in subparagraph (B), by striking ‘‘sub-
section (k)(4)(I)’’ and inserting ‘‘subparagraph (H)
or (I) of subsection (k)(4)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) THRESHOLD OF CONTROL.—Subpara-
graph (A) shall not apply with respect to a
company described or referred to in clause (i)
or (ii) of such subparagraph if the financial
holding company does not own or control 25
percent or more of the total equity or any class
of voting securities of such company.’’.
SEC. 502. AMENDMENT TO PROVIDE THE FEDERAL RE-
SERVE 
BOARD 
WITH 
DISCRETION 
CON-
CERNING THE IMPUTATION OF CONTROL OF
SHARES OF A COMPANY BY TRUSTEES.
Section 2(g)(2) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841(g)(2)) is amended by inserting
‘‘, unless the Board determines that such treatment is not
appropriate in light of the facts and circumstances of the
case and the purposes of the Act’’ before the period at
the end.
SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON THRIFT
SERVICE COMPANIES.
(a) IN GENERAL.—The 1st sentence of section
5(c)(4)(B) of the Home Owners’ Loan Act (12 U.S.C.
1464(c)(4)(B)) is amended by striking ‘‘corporation orga-
nized’’ and all that follows through the period at the end
of the sentence and inserting ‘‘company, if the entire cap-
ital of the company is available for purchase only by sav-
ings associations’’.
(b) TECHNICAL CORRECTIONS.—
(1) The heading for subparagraph (B) of sec-
tion 5(c)(4) of the Home Owners’ Loan Act (12
U.S.C. 1464(c)(4)(B)) is amended by striking ‘‘COR-
PORATIONS’’ and inserting ‘‘COMPANIES’’.
(2) The 2nd sentence of section 5(n)(1) of the
Home Owners’ Loan Act (12 U.S.C. 1464(n)(1)) is
amended by striking ‘‘service corporations’’ and in-
serting ‘‘service companies’’.
(3) Section 5(q)(1) of the Home Owners’ Loan
Act (12 U.S.C. 1464(q)(11)) is amended by striking
‘‘service corporation’’ each place such term appears
in subparagraph (A), (B), (C) and inserting ‘‘service
company’’.
(4) Section 10(m)(4)(C)(iii)(II) of the Home
Owners’ 
Loan 
Act 
(12 
U.S.C.
1467a(m)(4)(C)(iii)(II)) is amended by striking
‘‘service corporation’’ each place such term appears
and inserting ‘‘service company’’.
TITLE VI—BANKING AGENCY
PROVISIONS
SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER
TO ALLOCATE EXAMINER RESOURCES.
Section 10(d) of the Federal Deposit Insurance Act
(12 U.S.C. 1820(d)) is amended—
(1) by redesignating paragraphs (5), (6), (7),
(8), (9), and (10) as paragraphs (6), (7), (8), (9),
(10), and (11), respectively;
(2) by inserting after paragraph (4), the fol-
lowing new paragraph:
‘‘(5) WAIVER OF SCHEDULE WHEN NECESSARY
TO ACHIEVE SAFE AND SOUND ALLOCATION OF EX-
AMINER
RESOURCES.—Notwithstanding paragraphs
(1), (2), (3), and (4), an appropriate Federal bank-
ing agency may make adjustments in the examina-
tion cycle for an insured depository institution if
necessary to allocate available resources of exam-
iners in a manner that provides for the safety and
soundness of, and the effective examination and su-
pervision of, insured depository institutions.’’; and
(3) in paragraphs (8) and (9), as so redesig-
nated, by striking ‘‘paragraph (6)’’ and inserting
‘‘paragraph (7)’’.
SEC. 602. CREDIT CARD ACCOUNTS PERMITTED FOR BANK
EXAMINERS ON SAME TERMS AS OTHER CON-
SUMERS.
Section 212 of title 18, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘With respect to any employee of a Federal banking
agency (as defined in section 3 of the Federal Deposit In-
surance Act) including any examiner or assistant exam-
iner, the provisions of this section and section 213 shall
not prohibit such employee from applying for, or being a
cardholder under, any credit card account under an open
end consumer credit plan (as such terms are defined in
the Truth in Lending Act), to the extent the terms and
conditions applicable with respect to such account, and
any credit extended under such account, are no more fa-
vorable to the employee than the terms and conditions that
are generally applicable to credit card accounts established
under open end consumer credit plan for other con-
sumers.’’.
SEC. 603. INTERAGENCY DATA SHARING.
(a) FEDERAL BANKING AGENCIES.—Section 7(a)(2)
of the Federal Deposit Insurance Act (12 U.S.C.
1817(a)(2)) is amended by adding at the end the following
new subparagraph:
‘‘(C) DATA SHARING WITH OTHER AGEN-
CIES AND PERSONS.—In addition to reports of
examination, reports of condition, and other re-
ports required to be regularly provided to the
Corporation (with respect to all insured deposi-
tory institutions, including a depository institu-
tion for which the Corporation has been ap-
pointed conservator or receiver) or an appro-
priate State bank supervisor (with respect to a
State depository institution) under subpara-
graph (A) or (B), a Federal banking agency
may, in the agency’s discretion, furnish any re-
port of examination or other confidential super-
visory information concerning any depository
institution or other entity examined by such
agency under authority of any Federal law,
to—
‘‘(i) any other Federal or State agen-
cy or authority with supervisory or regu-
latory authority over the depository institu-
tion or other entity;
‘‘(ii) to any officer, director, or re-
ceiver of such depository institution or en-
tity; and
‘‘(iii) any other institution-affiliated
party of such depository institution or enti-
ty the Federal banking agency determines
to be appropriate.’’.
(b) NATIONAL CREDIT UNION ADMINISTRATION.—
Section 202(a) of the Federal Credit Union Act (12
U.S.C. 1782(a)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(8) DATA
SHARING
WITH
OTHER
AGENCIES
AND PERSONS.—In addition to reports of examina-
tion, reports of condition, and other reports required
to be regularly provided to the Board (with respect
to all insured credit unions, including a credit union
for which the Corporation has been appointed con-
servator or liquidating agent) or an appropriate
State commission, board, or authority having super-
vision of a State-chartered credit union, the Board
may, in the Board’s discretion, furnish any report
of examination or other confidential supervisory in-
formation concerning any credit union or other enti-
ty examined by the Board under authority of any
Federal law, to—
‘‘(i) any other Federal or State agen-
cy or authority with supervisory or regu-
latory authority over the credit union or
other entity;
‘‘(ii) to any officer, director, or re-
ceiver of such credit union or entity; and
‘‘(iii) any other institution-affiliated
party of such credit union or entity the
Board determines to be appropriate.’’.
SEC. 604. PENALTY FOR UNAUTHORIZED PARTICIPATION
BY CONVICTED INDIVIDUAL.
(a) Section 19 of the Federal Deposit Insurance Act
(12 U.S.C. 1829) is amended by adding at the end the
following new subsection:
‘‘(c) UNINSURED BANKS.—
‘‘(1) IN
GENERAL.—Subsections (a) and (b)
shall apply to a noninsured national bank, a non-
insured State member bank, and any agency or non-
insured branch of a foreign bank as if such bank,
branch, or agency were an insured depository insti-
tution.
‘‘(2) APPROPRIATE ENFORCEMENT AGENCY.—
Paragraph (1) shall be applied by substituting the
appropriate agency for the term ‘‘Corporation’’ as
follows:
‘‘(A) The Comptroller of the Currency, in
the case of a noninsured national bank or any
Federal agency or noninsured Federal branch
of a foreign bank.
‘‘(B) the Board of Governors of the Fed-
eral Reserve System, in the case of a non-
insured State member bank or any State agen-
cy or noninsured State branch of a foreign
bank.
‘‘(3) DEFINITIONS.—For purposes of this sec-
tion, the following definitions shall apply:
‘‘(A) AGENCY, BRANCH, FEDERAL AGENCY,
STATE
AGENCY, AND
STATE
BRANCH.—The
terms ‘agency’, ‘branch’, ‘Federal agency’,
‘State agency’, and ‘State branch’ have the
same meaning as in section 1(b) of the Inter-
national Banking Act of 1978.
‘‘(B) NONINSURED
BRANCH.—The term
‘noninsured branch’ means a branch that is not
an insured branch.’’.
(1) by striking ‘‘Corporation’’ and inserting
‘‘designated agency’’; and
(2) by striking ‘‘insured depository institution’’
in clauses (i), (ii), and (iii) of subparagraph (A) and
in subparagraph (B) and inserting ‘‘depository insti-
tution’’.
(b) DESIGNATED AGENCY DEFINED.—Section 19(a)
of the Federal Deposit Insurance Act (12 U.S.C. 1829(a))
is amended by adding at the end the following new para-
graph:
‘‘(3) DESIGNATED
AGENCY
DEFINED.—For
purposes of paragraph (1), the term ‘designated
agency’ means—
‘‘(A) the Corporation, in the case of an in-
sured depository institution or an uninsured
State nonmember bank;
‘‘(B) the Comptroller of the Currency, in
the case of an uninsured national bank or an
uninsured Federal branch or agency of a for-
eign bank; and
‘‘(C) the Board of Governors of the Fed-
eral Reserve System, in the case of an unin-
sured State member bank or an uninsured
State branch or agency of a foreign bank.’’.
SEC. 605. AMENDMENT PERMITTING THE DESTRUCTION OF
OLD RECORDS OF A DEPOSITORY INSTITU-
TION BY THE FDIC AFTER THE APPOINTMENT
OF THE FDIC AS RECEIVER.
Section 11(d)(15)(D) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(d)(15)(D)) is amended—
(1) by striking ‘‘RECORDKEEPING
REQUIRE-
MENT.—After the end of the 6-year period’’ and in-
serting ‘‘RECORDKEEPING REQUIREMENT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), after the end of the 6-
year period’’; and
(2) by adding at the end the following new
clause:
‘‘(ii) OLD RECORDS.—In the case of
records of an insured depository institution
which are at least 10 years old as of the
date the Corporation is appointed as the
receiver of such depository institution, the
Corporation may destroy such records in
accordance with clause (i) any time after
such appointment is final without regard
to the 6-year period of limitation contained
in such clause.