IB
Union Calendar No. 148
104TH CONGRESS
1ST SESSION
H. R. 2491
[Report No. 104–280]
To provide for reconciliation pursuant to section 105 of the concurrent
resolution on the budget for fiscal year 1996.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 17, 1995
Mr. KASICH from the Committee on the Budget, reported the following bill;
which was committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
A BILL
To provide for reconciliation pursuant to section 105 of
the concurrent resolution on the budget for fiscal year 1996.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—PROVISIONS OF
GENERAL APPLICABILITY
SECTION 1001. SHORT TITLE.
This Act may be cited as the ‘‘Seven-Year Balanced
Budget Reconciliation Act of 1995’’.
SEC. 1002. TABLE OF TITLES.
This Act is organized into titles as follows:
TITLE I—PROVISIONS OF GENERAL APPLICABILITY
TITLE II—COMMITTEE ON BANKING AND FINANCIAL SERVICES
TITLE III—COMMITTEE ON COMMERCE
TITLE IV—COMMITTEE ON ECONOMIC AND EDUCATIONAL
OPPORTUNITIES
TITLE V—COMMITTEE ON GOVERNMENT REFORM AND
OVERSIGHT
TITLE VI—COMMITTEE ON INTERNATIONAL RELATIONS
TITLE VII—COMMITTEE ON THE JUDICIARY
TITLE VIII—COMMITTEE ON NATIONAL SECURITY
TITLE IX—COMMITTEE ON RESOURCES
TITLE X—COMMITTEE ON TRANSPORTATION AND
INFRASTRUCTURE
TITLE XI—COMMITTEE ON VETERANS’ AFFAIRS
TITLE XII—COMMITTEE ON WAYS AND MEANS-TRADE
TITLE XIII—COMMITTEE ON WAYS AND MEANS-REVENUES
TITLE XIV—COMMITTEE ON WAYS AND MEANS-TAX
SIMPLIFICATION
TITLE XV—MEDICARE
TITLE XVI—TRANSFORMATION OF THE MEDICAID PROGRAM
TITLE XVII—DEPARTMENT OF COMMERCE ABOLITION
TITLE XVIII—WELFARE REFORM
TITLE XIX—CONTRACT TAX PROVISIONS
TITLE XX—BUDGET PROCESS
TITLE II—COMMITTEE ON BANK-
ING AND FINANCIAL SERV-
ICES
SEC. 2001. TABLE OF CONTENTS.
The table of contents for this title is as follows:
Subtitle A—Housing Provisions
Sec. 2101. Termination of RTC and FDIC affordable housing programs.
Sec. 2102. Elimination of FHA assignment program and foreclosure relief.
Sec. 2103. Reform of HUD-owned multifamily property disposition program.
Sec. 2104. Recapture of rural housing loan subsidies by Rural Housing and
Community Development Service.
Sec. 2105. Reduction of section 8 annual adjustment factors for units without
tenant turnover.
Subtitle B—Thrift Charter Conversion
Sec. 2200. Short title.
CHAPTER 1—BANK INSURANCE FUND AND SAVINGS ASSOCIATION
INSURANCE FUND
Sec. 2201. Special assessment.
Sec. 2202. Assessments on insured depository institutions.
Sec. 2203. Merger of Bank Insurance Fund and Savings Association Insurance
Fund after recapitalization of SAIF.
Sec. 2204. Refund of amounts in deposit insurance fund in excess of designated
reserve amount.
Sec. 2205. Assessments authorized only if needed to maintain the reserve ratio
of a deposit insurance fund.
CHAPTER 2—STATUS OF BANKS AND SAVINGS ASSOCIATIONS
Sec. 2221. Termination of Federal savings associations; treatment of State sav-
ings associations as banks for purposes of Federal banking law.
Sec. 2222. Treatment of certain activities and affiliations of bank holding com-
panies resulting from this Act.
Sec. 2223. Transition provisions for activities of savings associations which con-
vert into or become treated as banks.
Sec. 2224. Registration of bank holding companies resulting from conversions
of savings associations to banks or treatment of savings asso-
ciations as banks.
Sec. 2225. Additional transition provisions and special rules.
Sec. 2226. Technical and conforming amendments.
Sec. 2227. References to savings associations and State banks in Federal law.
Sec. 2228. Repeal of Home Owners’ Loan Act.
Sec. 2229. Effective date; definitions.
CHAPTER 3—TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY
Sec. 2241. Office of Thrift Supervision abolished.
Sec. 2242. Determination of transferred functions and employees.
Sec. 2243. Savings provisions.
Sec. 2244. References in Federal law to Director of the Office of Thrift Super-
vision.
Sec. 2245. Reconfiguration of board of directors of FDIC as a result of removal
of Director of the Office of Thrift Supervision.
CHAPTER 4—LOAN LOSS RESERVE TREATMENT
Sec. 2261. Sense of the Congress.
Subtitle C—Community Reinvestment Act Amendments
Sec. 2301. Expression of congressional intent.
Sec. 2302. Community Reinvestment Act exemption.
Sec. 2303. Self-certification of CRA compliance.
Sec. 2304. Community input and conclusive rating.
Sec. 2305. Special purpose financial institutions.
Sec. 2306. Increased incentives for lending to low- and moderate-income com-
munities.
Sec. 2307. Prohibition on additional reporting under CRA.
Sec. 2308. Technical amendment.
Sec. 2309. Duplicative reporting.
Sec. 2310. CRA congressional oversight.
Sec. 2311. Consultation among examiners.
Sec. 2312. Limitation on regulations.
Subtitle A—Housing Provisions
SEC. 2101. TERMINATION OF RTC AND FDIC AFFORDABLE
HOUSING PROGRAMS.
(a) REPEAL OF UNIFIED PROGRAM AND TRANSFER
OF RTC WINDUP AUTHORITY TO HUD.—Section 21A(c)
of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)) is amended by striking paragraph (17) and in-
serting the following new paragraph:
‘‘(17) TRANSFER
OF
AUTHORITY.—The Sec-
retary shall assume, not later than December 31,
1995, and thereafter shall carry out, any remaining
authority and responsibilities of the Corporation to
recapture excess proceeds from resale of properties
and to monitor and enforce low-income occupancy
requirements or rent limitations under this sub-
section and shall assume any direct or contingent li-
ability of the Corporation to carry out such author-
ity and responsibilities.’’.
(b) TERMINATION OF RTC AFFORDABLE HOUSING
PROGRAM.—Section 21A(c) of the Federal Home Loan
Bank Act (12 U.S.C. 1441a(c)) is amended by adding at
the end the following new paragraph:
‘‘(18) TERMINATION.—
‘‘(A) IN GENERAL.—On and after the date
of the enactment of the Seven-Year Balanced
Budget Reconciliation Act of 1995, the provi-
sions of this subsection (other than paragraph
(17)) shall not apply with respect to any eligible
residential property or eligible condominium
property.
‘‘(B) SAVINGS PROVISION.—Notwithstand-
ing subparagraph (A), the provisions of this
subsection shall continue to apply on and after
such date of enactment to any eligible residen-
tial property or eligible condominium property
that—
‘‘(i) has been sold or otherwise dis-
posed of by the Corporation before such
date of enactment; or
‘‘(ii) is subject to a contract of sale or
other disposition entered into before such
date of enactment.’’.
(c) TERMINATION OF AFFORDABLE HOUSING ADVI-
SORY BOARD.—Section 14(b)(9) of the Resolution Trust
Corporation Completion Act (12 U.S.C. 1831q note) is
amended by striking ‘‘September 30, 1998’’ and inserting
‘‘September 30, 1995’’.
(d) REPEAL OF FDIC PROGRAM AND TRANSFER OF
WINDUP AUTHORITY TO HUD.—
(1) REPEAL.—Section 40 of the Federal De-
posit Insurance Act (12 U.S.C. 1831q) is hereby re-
pealed.
(2) TRANSFER OF WINDUP AUTHORITY.—Not-
withstanding paragraph (1)—
(A) effective December 31, 1995, the Sec-
retary shall carry out any remaining authority
and responsibilities of the Federal Deposit In-
surance Corporation under section 40 of the
Federal Deposit Insurance Act to recapture ex-
cess proceeds from resale of properties and to
monitor and enforce low-income occupancy re-
quirements or rent limitations under such sec-
tion and shall assume any direct or contingent
liability of the Corporation to carry out such
authority and responsibilities; and
(B) the Federal Deposit Insurance Cor-
poration shall consummate any sales of prop-
erty under section 40 of such Act that were
pending under contracts of sale on September
30, 1995.
(e) FDIC DISPOSITION OF ASSETS AS CONSERVATOR
OR RECEIVER.—Section 11(d)(13)(E) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(d)(13)(E)) is
amended—
(1) in clause (iii), by inserting ‘‘and’’ after the
semicolon;
(2) in clause (iv), by striking ‘‘; and’’ and in-
serting a period; and
(3) by striking clause (v).
(f) 
DISPOSITION
OF
FDIC 
ASSETS.—Section
13(d)(3)(D) of the Federal Deposit Insurance Act (12
U.S.C. 1823(d)(3)(D)) is amended—
(1) in clause (iii), by inserting ‘‘and’’ after the
semicolon;
(2) in clause (iv), by striking ‘‘; and’’ and in-
serting a period; and
(3) by striking clause (v).
SEC. 2102. ELIMINATION OF FHA ASSIGNMENT PROGRAM
AND FORECLOSURE RELIEF.
(a) ELIMINATION OF TMAP AND ASSIGNMENT PRO-
GRAM.—Section 230 of the National Housing Act (12
U.S.C. 1715u) is hereby repealed.
(b) PROHIBITION OF FORECLOSURE AVOIDANCE RE-
LIEF.—Section 204 of the National Housing Act (12
U.S.C. 1710) is amended by adding at the end the follow-
ing new subsection:
‘‘(m) PROHIBITION OF FORECLOSURE AVOIDANCE
RELIEF.—Notwithstanding any provision of this section,
any other provision of this Act, section 2 of the Housing
Act of 1949, section 2 of the Housing and Urban Develop-
ment Act of 1968, or any other provision of law, after
September 30, 1995, the Secretary of Housing and Urban
Development may not provide foreclosure avoidance relief
to any mortgagor who has defaulted in making payments
under a mortgage covering a 1-, 2-, 3-, or 4-family resi-
dence insured under this Act.’’.
SEC. 2103. REFORM OF HUD-OWNED MULTIFAMILY PROP-
ERTY DISPOSITION PROGRAM.
(a) IN GENERAL.—Effective October 1, 1995, section
203 of the Housing and Community Development Amend-
ments of 1978 (12 U.S.C. 1701z–11) is amended to read
as follows:
‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF HUD-
OWNED MULTIFAMILY HOUSING PROJECTS.
‘‘(a) IN GENERAL.—The Secretary of Housing and
Urban Development may manage and dispose of (1) multi-
family housing projects that are owned by the Secretary
or that are subject to mortgages held by the Secretary,
and (2) mortgages on multifamily housing projects that
are held by the Secretary, without regard to any other pro-
vision of law.
‘‘(b) AUTHORITY TO DELEGATE.—The Secretary of
Housing and Urban Development may delegate to one or
more entities the authority to carry out some or all of the
functions and responsibilities of the Secretary in connec-
tion with the foreclosure of mortgages on multifamily
housing projects held by the Secretary.
‘‘(c) DEFINITION.—For purposes of this section, the
term ‘multifamily housing project’ means any multifamily
rental housing project which is, or prior to acquisition by
the Secretary was, assisted or insured under the National
Housing Act, or was subject to a loan under section 202
of the Housing Act of 1959.’’.
(b) CONFORMING AMENDMENTS.—
(1) NONDISCRIMINATION AGAINST CERTIFICATE
AND
VOUCHER
HOLDERS.—Section 183(c) of the
Housing and Community Development Act of 1987
(42 U.S.C. 1437f note) is amended by striking ‘‘sec-
tion 203(i)(2) of the Housing and Community De-
velopment Amendments of 1978, as amended by sec-
tion 181(h) of this Act’’ and inserting ‘‘section
203(b) of the Housing and Community Development
Amendments of 1978 (as in effect before October 1,
1995)’’.
(2) LIHPRH ACT OF 1990.—Section 212(c) of
the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4102(c)) is
amended by striking the last sentence.
(3) HOPE
HOMEOWNERSHIP
PROGRAM.—Sec-
tion 427 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12877) is amended by
striking ‘‘subject to—’’ and all that follows and in-
serting ‘‘subject to the Low-Income Housing Preser-
vation and Resident Homeownership Act of 1990.’’.
(4) FHA MULTIFAMILY
HOUSING
MORTGAGE
INSURANCE.—Section 207(k) of the National Hous-
ing Act (12 U.S.C. 1713(k)) is amended by striking
the third sentence.
(5) MULTIFAMILY
MORTGAGE
FORECLOSURE
ACT OF 1981.—Section 367(b)(2) of the Multifamily
Mortgage 
Foreclosure 
Act 
of 
1981 
(12
U.S.C.3706(b)(2)) is amended—
(A) by striking subparagraph (B); and
(B) by striking ‘‘(A)’’.
(6) PREVENTING MORTGAGE DEFAULTS ON IN-
SURED
MULTIFAMILY
PROJECTS.—Section
103(h)(2)(B) of the Multifamily Housing Property
Disposition Reform Act of 1994 (12 U.S.C. 1715z–
1a note) is amended by inserting ‘‘(as in effect be-
fore October 1, 1995)’’ after ‘‘1978’’.
SEC. 2104. RECAPTURE OF RURAL HOUSING LOAN SUB-
SIDIES BY RURAL HOUSING AND COMMUNITY
DEVELOPMENT SERVICE.
The first sentence of section 521(a)(1)(D)(i) of the
Housing Act of 1949 (42 U.S.C. 1490a(a)(1)(D)(i)) is
amended by inserting ‘‘upon the repayment of any loan
made under this title or’’ after ‘‘assistance rendered’’.
SEC. 2105. REDUCTION OF SECTION 8 ANNUAL ADJUST-
MENT FACTORS FOR UNITS WITHOUT TEN-
ANT TURNOVER.
Paragraph (2)(A) of section 8(c) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)) is
amended by striking the last sentence.
Subtitle B—Thrift Charter
Conversion
SEC. 2200. SHORT TITLE.
This subtitle may be cited as the ‘‘Thrift Charter
Conversion Act of 1995’’.
CHAPTER 1—BANK INSURANCE FUND AND
SAVINGS ASSOCIATION INSURANCE FUND
SEC. 2201. SPECIAL ASSESSMENT.
Section 7(b)(6) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(6)) is amended—
(1) by redesignating clauses (i), (ii), and (iii) of
subparagraph (A) as subclauses (I), (II), and (III),
respectively;
(2) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(3) by moving the left margin of such clauses
and subclauses (as so redesignated) 2 ems to the
right;
(4) by striking ‘‘SPECIAL
ASSESSMENTS.—In
addition to’’ and inserting ‘‘SPECIAL
ASSESS-
MENTS.—
‘‘(A) IN GENERAL.—In addition to’’; and
(5) by adding at the end the following new sub-
paragraphs:
‘‘(B) SINGLE
ADDITIONAL
SPECIAL
AS-
SESSMENT
WITH
RESPECT
TO
CERTAIN
AC-
COUNTS.—
‘‘(i) IN
GENERAL.—The Corporation
shall impose, on the basis of such factors
as the Board of Directors considers to be
appropriate, a single special assessment on
the institutions described in the following
subclauses (other than institutions exempt
under subparagraph (C)):
‘‘(I) Each Savings Association
Insurance Fund member (including
any Savings Association Insurance
Fund member referred to in section
5(d)(2)(G)).
‘‘(II) Each Bank Insurance Fund
member which has deposits which are
treated, under section 5(d)(3), as de-
posits which are insured by the Sav-
ings Association Insurance Fund.
‘‘(ii) AMOUNT OF ASSESSMENT.—The
assessment imposed under clause (i) shall
be in an amount equal to such percentage
of the Savings Association Insurance Fund
assessment base (of the institutions subject
to such assessment) as of March 31, 1995,
as the Board of Directors determines, in
the Board of Directors’ discretion, to be
necessary in order for the reserve ratio of
the Savings Association Insurance Fund to
meet the designated reserve ratio on the
1st business day of January, 1996.
‘‘(iii) DEPOSIT
OF
ASSESSMENT.—
Notwithstanding any other provision of
law, the proceeds of any assessment im-
posed under clause (i) shall be deposited in
the Savings Association Insurance Fund.
‘‘(iv) DATE PAYMENT DUE.—The spe-
cial assessment imposed under this sub-
paragraph shall be—
‘‘(I) due on the 1st business day
of January, 1996; and
‘‘(II) paid to the Corporation on
the later of the due date or such other
date as the Corporation may prescribe
which may not be later than the end
of the 60-day period beginning on the
date of the Thrift Charter Conversion
Act of 1995.
‘‘(v) SAVINGS
ASSOCIATION
INSUR-
ANCE
FUND
ASSESSMENT
BASE
DE-
FINED.—For purposes of this subpara-
graph, the term Savings Association Insur-
ance Fund assessment base means—
‘‘(I) the assessment base of Sav-
ings 
Association 
Insurance 
Fund
members on which assessments are
imposed under the risk-based assess-
ment system established pursuant to
paragraph (1); and
‘‘(II) in the case of an institution
described in clause (i)(II), the ad-
justed attributable deposit amount de-
termined under subparagraph (C) of
section 5(d)(3) for purposes of sub-
paragraph (B)(i) of such section.
‘‘(C) SPECIAL
RULES
FOR
CERTAIN
EX-
EMPT INSTITUTIONS.—
‘‘(i) IN GENERAL.—The Board of Di-
rectors may exempt any weak insured de-
pository institution from the payment of
the assessment imposed under subpara-
graph (B)(i) if the exemption would reduce
risk to the Savings Association Insurance
Fund.
‘‘(ii) CONTINUATION OF ASSESSMENT
RATES APPLICABLE AS OF JUNE 30, 1995.—
Notwithstanding any other provision of
this subsection or any determination by the
Corporation pursuant to paragraph (2),
the semiannual assessment rate applicable
under paragraph (2) during the period be-
ginning on January 1, 1996, and ending
on December 31, 1999, with respect to any
insured depository institution which re-
ceives an exemption under clause (i) shall
be the semiannual assessment rate which
would be applicable to such institution
under paragraph (2) if such assessment
rate were calculated in the manner in
which semiannual assessment rates for
Savings Association Insurance Fund mem-
bers were determined by the Corporation
under such paragraph as of June 30,
1995.
‘‘(iii) SPECIAL
RULE
FOR
OAKAR
BANKS.—If an insured depository institu-
tion to which clause (ii) applies is an insti-
tution 
described 
in 
subparagraph
(B)(i)(II), section 5(d)(3) (as in effect on
September 13, 1995) shall continue to
apply with respect to such institution for
purposes of clause (ii) without regard to
the repeal of such section by section
2202(c) of the Thrift Charter Conversion
Act of 1995.
‘‘(iv) DEPOSIT OF ASSESSMENT.—As-
sessments imposed under paragraph (2) in
accordance with clause (i) on depository in-
stitutions to which such clause applies
shall be deposited—
‘‘(I) in the Savings Association
Insurance Fund until such fund is
merged into the deposit insurance
fund pursuant to section 2203(a)(2)
of the Thrift Charter Conversion Act
of 1995; and
‘‘(II) after such merger, in the
deposit insurance fund.
‘‘(v) GUIDELINES.—
‘‘(I) GUIDELINES
REQUIRED.—
Not later than 30 days after the date
of the enactment of the Thrift Char-
ter Conversion Act of 1995, the Board
of Directors shall prescribe guidelines
containing the criteria to be used by
the Board of Directors in making any
determination under clause (i).
‘‘(II) PUBLICATION.—The guide-
lines prescribed under subclause (I)
shall be published in the Federal Reg-
ister.
‘‘(D) PRO RATA PAYMENT OF SPECIAL AS-
SESSMENT BY EXEMPT INSTITUTIONS AUTHOR-
IZED.—In the case of any depository institution
which receives an exemption under subpara-
graph (C)(i) from the special assessment im-
posed under subparagraph (B) and any succes-
sor to such institution, subparagraph (C)(ii)
shall cease to apply with respect to such institu-
tion as of the date on which the institution
makes a payment to the Corporation, on such
terms as the Board of Directors may prescribe,
in an amount equal to the product of—
‘‘(i) 12.5 percent of the product of—
‘‘(I) the Savings Association In-
surance Fund assessment base of the
institution which would have been
used in the calculation of the amount
of such special assessment if the insti-
tution had not received the exemption
from such assessment; and
‘‘(II) the percentage rate cal-
culated by the Board of Directors
under subparagraph (B)(ii) for use in
determining the amount of the special
assessment for depository institutions
which did not receive an exemption
under subparagraph (C); and
‘‘(ii) the whole number of full semi-
annual periods which begin after the date
SEC. 2203. MERGER OF BANK INSURANCE FUND AND SAV-
INGS ASSOCIATION INSURANCE FUND AFTER
RECAPITALIZATION OF SAIF.
(a) ESTABLISHMENT
OF
DEPOSIT
INSURANCE
FUND.—
(1) IN GENERAL.—Effective January 1, 1998,
section 11(a)(5) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)(5)) is amended to read as
follows:
‘‘(5) DEPOSIT INSURANCE FUND.—
‘‘(A) ESTABLISHMENT.—There is estab-
lished a fund to be known as the deposit insur-
ance fund which shall—
‘‘(i) be maintained and administered
by the Corporation; and
‘‘(ii) initially consist of the assets and
liabilities of the Bank Insurance Fund and
Savings Association Insurance Fund which
have been merged by the Corporation into
the deposit insurance fund pursuant to
section 2203(a)(2) of the Thrift Charter
Conversion Act of 1995, other than any as-
sets of the Savings Association Insurance
Fund which have been deposited in the
special reserve of the deposit insurance
fund pursuant to section 2203(b)(2) of
such Act.
‘‘(B) USES.—The deposit insurance fund
shall be available to the Corporation for use in
carrying out the insurance purposes of the Cor-
poration in accordance with this Act with re-
spect to insured depository institutions.
‘‘(C) DEPOSITS.—All amounts assessed
against insured depository institutions by the
Corporation shall be deposited into the deposit
insurance fund.’’.
(2) MERGER BY CORPORATION.—Except with
respect to any assets of the Savings Association In-
surance Fund which are required to be deposited in
the special reserve of the deposit insurance fund
pursuant to subsection (b)(2), the Corporation shall
merge the Bank Insurance Fund and the Savings
Association Insurance Fund on January 1, 1998,
into the deposit insurance fund established by the
amendment made by paragraph (1).
(b) ESTABLISHMENT OF SPECIAL RESERVE OF THE
DEPOSIT INSURANCE FUND.—
(1) IN GENERAL.—Effective January 1, 1998,
section 11(a)(6) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)(6)) is amended to read as
follows:
‘‘(6) SPECIAL RESERVE OF THE DEPOSIT IN-
SURANCE FUND.—
‘‘(A) IN GENERAL.—There is established a
fund to be known as the special reserve of the
deposit insurance fund which shall—
‘‘(i) be maintained and administered
by the Corporation; and
‘‘(ii) initially consist of amounts de-
posited in the special reserve pursuant to
section 2203(b)(2) of the Thrift Charter
Conversion Act of 1995.
‘‘(B) EMERGENCY
USE
OF
SPECIAL
RE-
SERVE.—
‘‘(i) USE
AUTHORIZED.—Subject to
clause (ii) and notwithstanding subpara-
graph (C), the Corporation may, in the
sole discretion of the Board of Directors,
transfer amounts from the special reserve
for deposit in the deposit insurance fund
for use in accordance with paragraph
(5)(B).
‘‘(ii) CONDITIONS
ON
TRANSFER.—
The Board of Directors may authorize a
transfer under clause (i) only if—
‘‘(I) the Board of Directors de-
termines that the reserve ratio of the
deposit insurance fund is less than 50
percent of the designated reserve
ratio; and
‘‘(II) the Board of Directors
finds that the reserve ratio of the de-
posit insurance will likely be less than
the designated reserve ratio of the
fund for each of the 4 calendar quar-
ters beginning after the date of such
determination.
‘‘(C) NO REFUNDS OR OTHER USES AU-
THORIZED.—Except as provided in subpara-
graph (B), the Corporation may not make any
payment from the special reserve, make any re-
fund or provide any credit to any insured de-
pository institution with respect to any amount
in the special reserve, or use any amount in the
special reserve for any other purpose (including
the use of any such amount as security for the
repayment of any obligation of the Corpora-
tion).
‘‘(D) EXCLUSION OF SPECIAL RESERVE IN
CALCULATING
THE
RESERVE
RATIO.—No
amount in the special reserve may be taken into
account in calculating the reserve ratio of the
deposit insurance fund under section 7.’’.
(2) TRANSFER
AND
DEPOSIT
BY
CORPORA-
TION.—If, at the time of the merger of the Bank In-
surance Fund and the Savings Association Insur-
ance Fund pursuant to subsection (a)(2), the reserve
ratio of the Savings Association Insurance Fund ex-
ceeds the designated reserve ratio, the Corporation
shall transfer from such fund to the special reserve
of the deposit insurance fund established by the
amendment made by paragraph (1) an amount equal
to the amount which causes the reserve ratio of the
Savings Association Insurance Fund to exceed the
designated reserve ratio.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 3(y) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(y)) is amended by strik-
ing ‘‘the Bank Insurance Fund or the Savings Asso-
ciation Insurance Fund, as appropriate’’ and insert-
ing ‘‘the deposit insurance fund established under
section 11(a)(5)’’.
(2) Section 11(a) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(a)) is amended by strik-
ing paragraphs (4)(A) and (7).
(3) Section 5(d)(1) of the Federal Deposit In-
surance Act (12 U.S.C. 1815(d)(1)) is amended—
(A) in subparagraph (A), by striking ‘‘re-
serve ratios’’ and all that follows through the
period and inserting ‘‘the reserve ratio of the
deposit insurance fund.’’;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
(4) Section 7 of the Federal Deposit Insurance
Act (12 U.S.C. 1817) is amended by striking sub-
section (l).
(5) Section 7(b)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1817(b)(2)) is amended—
(A) by striking subparagraphs (B), (F),
and (G);
(B) in clauses (i) and (iv) of subparagraph
(A), by striking ‘‘each deposit insurance fund’’
and inserting ‘‘the deposit insurance fund’’;
(C) in subparagraph (A)(iii), by striking
‘‘a deposit insurance fund’’ and inserting ‘‘the
deposit insurance fund’’; and
(D) by inserting after subparagraph (E)
the following new subparagraph:
‘‘(F) RESERVE RATIO DEFINED.—For pur-
poses of this subsection, the term ‘reserve ratio’
means the ratio of the net worth of the deposit
insurance fund to the aggregate estimated in-
sured deposits held in all insured depository in-
stitutions.’’.
(6) Section 7(b)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1817(b)(3)) is amended—
(A) in subparagraph (A) by striking ‘‘any
deposit insurance fund’’ and inserting ‘‘the de-
posit insurance fund’’; and
(B) by striking subparagraphs (C) and
(D).
(7) Subparagraph (A) of section 7(b)(6) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1817(b)(6)) (as so redesignated by section 2201 of
this subtitle) is amended—
(A) in clause (i)—
(i) by inserting ‘‘or’’ after the semi-
colon at the end of subclause (I);
(ii) by striking subclause (II); and
(iii) by striking ‘‘; and’’ at the end of
subclause (III) and inserting a period; and
(B) by striking clause (ii).
(8) Section 11(a)(4)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(4)(B)) is amend-
ed by striking ‘‘Bank Insurance Fund and the Sav-
ings Association Insurance Fund’’ and inserting ‘‘de-
posit insurance fund’’.
(9) Paragraph (1) of section 11(f) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(f)) is
amended by striking ‘‘depositor, except that—’’ and
all that follows through the period at the end of the
paragraph and inserting ‘‘depositor.’’.
(10) Section 11(i)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(i)(3)) is amended—
(A) by striking subparagraph (B); and
(B) in subparagraph (C), by striking ‘‘sub-
paragraphs (A) and (B)’’ and inserting ‘‘sub-
paragraph (A)’’.
(11) Section 11A(a)(3) of the Federal Deposit
Insurance Act (12 U.S.C. 1821a(a)(3)) is amended
by striking ‘‘Bank Insurance Fund, the Savings As-
sociation Insurance Fund,’’ and inserting ‘‘deposit
insurance fund’’.
(12) Section 11A(f) of the Federal Deposit In-
surance Act (12 U.S.C. 1821a(f)) is amended by
striking ‘‘Savings Association Insurance Fund’’ and
inserting ‘‘deposit insurance fund’’.
(13) Section 13(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(a)(1)) is amended
by striking ‘‘Bank Insurance Fund, the Savings As-
sociation Insurance Fund,’’ and inserting ‘‘deposit
insurance fund, the special reserve of the deposit in-
surance fund,’’.
(14) Section 13(c)(4)(G)(ii) of the Federal De-
posit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is
amended—
(A) by striking ‘‘appropriate insurance
fund’’ and inserting ‘‘deposit insurance fund’’;
(B) by striking ‘‘the members of the insur-
ance fund (of which such institution is a mem-
ber)’’ and inserting ‘‘insured depository institu-
tions’’;
(C) by striking ‘‘each member’s’’ and in-
serting ‘‘each insured depository institution’s’’;
and
(D) by striking ‘‘the member’s’’ each place
such term appears and inserting ‘‘the institu-
tion’s’’.
(15) Section 13(c) of the Federal Deposit In-
surance Act (12 U.S.C. 1823(c)) is amended by
striking paragraph (11).
(16) Section 13(h) of the Federal Deposit In-
surance Act (12 U.S.C. 1823(h)) is amended by
striking ‘‘Bank Insurance Fund’’ and inserting ‘‘de-
posit insurance fund’’.
(17) Section 14(a) of the Federal Deposit In-
surance Act (12 U.S.C. 1824(a)) is amended—
(A) by striking ‘‘Bank Insurance Fund or
the Savings Association Insurance Fund’’ and
inserting ‘‘deposit insurance fund’’; and
(B) by striking ‘‘each such fund’’ and in-
serting ‘‘the fund’’.
(18) Section 14(b) of the Federal Deposit In-
surance Act (12 U.S.C. 1824(b)) is amended by
striking ‘‘Bank Insurance Fund or Savings Associa-
tion Insurance Fund’’ and inserting ‘‘deposit insur-
ance fund’’.
(19) Section 14(c) of the Federal Deposit In-
surance Act (12 U.S.C. 1824(c)) is amended by
striking paragraph (3).
(20) Section 14 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1824) is amended by striking
subsection (d).
(21) Section 15(c)(5) of the Federal Deposit
Insurance Act (12 U.S.C. 1825(c)(5)) is amended—
(A) by striking ‘‘Bank Insurance Fund or
Savings Association Insurance Fund, respec-
tively,’’ and inserting ‘‘deposit insurance fund’’;
(B) by striking ‘‘Bank Insurance Fund or
Savings Association Insurance Fund, respec-
tively;’’ and inserting ‘‘deposit insurance fund;’’;
and
(C) by striking ‘‘Bank Insurance Fund or
the Savings Association Insurance Fund, re-
spectively,’’ and inserting ‘‘deposit insurance
fund,’’.
(22) Section 17(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1827(a)(1)) is amended
by striking ‘‘Bank Insurance Fund, the Savings As-
sociation Insurance Fund,’’ each place such term ap-
pears and inserting ‘‘deposit insurance fund’’.
(23) Section 17(d) of the Federal Deposit In-
surance Act (12 U.S.C. 1827(d)) is amended by
striking ‘‘Bank Insurance Fund, the Savings Asso-
ciation Insurance Fund,’’ each place such term ap-
pears and inserting ‘‘deposit insurance fund’’.
(24) The heading for section 17(a) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1827(a)) is
amended by striking ‘‘BIF, SAIF,’’ and inserting
‘‘THE DEPOSIT INSURANCE FUND’’.
(25) Subsections (a)(1) and (d)(1)(A) of section
24 of the Federal Deposit Insurance Act (12 U.S.C.
1831a) are each amended by striking ‘‘appropriate’’.
(26) Section 24(e)(2) of the Federal Deposit
Insurance Act (12 U.S.C. 1831a(e)(2)) is amend-
ed—
(A) in subparagraph (A), by striking ‘‘of
which such banks are members’’; and
(B) in subparagraph (B)(ii), by striking
‘‘of which such bank is a member’’.
(27) Section 24(f)(6)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1831a(f)(6)(B)) is amend-
ed by striking ‘‘of which such bank is a member’’.
(28) Section 31 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831h) is hereby repealed.
(29) Section 36(i)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1831m(i)(3)) is amended by
striking ‘‘affected’’.
(30) Section 38 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831o) is amended by striking
subsection (o).
(31) Section 21B(f)(2)(C)(ii) of the Federal
Home 
Loan 
Bank 
Act 
(12 
U.S.C.
1441b(f)(2)(C)(ii)) is amended to read as follows:
‘‘(C) PAYMENTS BY FEDERAL HOME
LOAN BANKS.—To the extent the amounts
available pursuant to subparagraphs (A)
and (B) are insufficient to cover the
amount of interest payments, each Federal
home loan bank shall pay to the Funding
Corporation each calendar year an amount
equal to 22.63 percent of the bank’s net
earnings for the year for which such
amount is required to be paid.’’.
(d) EFFECTIVE
DATE
OF
AMENDMENTS.—The
amendments made by subsection (c) shall take effect on
January 1, 1998.
SEC. 2204. REFUND OF AMOUNTS IN DEPOSIT INSURANCE
FUND IN EXCESS OF DESIGNATED RESERVE
AMOUNT.
Subsection (e) of section 7 of the Federal Deposit In-
surance Act (12 U.S.C. 1817(e)) is amended to read as
follows:
‘‘(e) REFUNDS.—
‘‘(1) OVERPAYMENTS.—In the case of any pay-
ment of an assessment by an insured depository in-
stitution in excess of the amount due to the Cor-
poration, the Corporation may—
‘‘(A) refund the amount of the excess pay-
ment to the insured depository institution; or
‘‘(B) credit such excess amount toward the
payment of subsequent semiannual assessments
until such credit is exhausted.
‘‘(2) BALANCE IN INSURANCE FUND IN EXCESS
OF DESIGNATED RESERVE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), if as of the end of any semiannual
period the amount of the actual reserves in—
‘‘(i) the Bank Insurance Fund (until
the merger of such fund into the deposit
insurance 
fund 
pursuant 
to 
section
2203(a)(2) of the Thrift Charter Conver-
sion Act of 1995); or
‘‘(ii) the deposit insurance fund (after
the establishment of such fund under sec-
tion 2203(a)(1) of such Act),
exceeds the balance required to meet the des-
ignated reserve ratio applicable with respect to
such fund, such excess amount shall be re-
funded to members of the fund by the Corpora-
tion on such basis as the Board of Directors de-
termines to be appropriate, taking into account
the factors considered under the risk-based as-
sessment system.
‘‘(B) REFUND NOT TO EXCEED PREVIOUS
SEMIANNUAL
ASSESSMENT.—The amount of
any refund under this paragraph to any mem-
ber of a deposit insurance fund for any semi-
annual period may not exceed the total amount
of assessments paid by such member to the in-
surance fund with respect to such period.’’.
SEC. 2205. ASSESSMENTS AUTHORIZED ONLY IF NEEDED
TO MAINTAIN THE RESERVE RATIO OF A DE-
POSIT INSURANCE FUND.
(a) IN GENERAL.—Section 7(b)(2)(A)(i) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(i))
is amended in the portion of such section preceding
subclause (I) by inserting ‘‘when necessary, and only to
the extent necessary’’ after ‘‘insured depository institu-
tions’’.
(b) 
LIMITATION
ON
ASSESSMENT.—Section
7(b)(2)(A)(iii) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(2)(A)(iii)) is amended to read as follows:
‘‘(iii) LIMITATION ON ASSESSMENT.—
The Board of Directors shall not set semi-
annual assessments with respect to a de-
posit insurance fund in excess of the
amount needed—
‘‘(I) to maintain the reserve ratio
of the fund at the designated reserve
ratio; or
‘‘(II) if the reserve ratio is less
than the designated reserve ratio, to
increase the reserve ratio to the des-
ignated reserve ratio.’’.
CHAPTER 2—STATUS OF BANKS AND
SAVINGS ASSOCIATIONS
SEC. 2221. TERMINATION OF FEDERAL SAVINGS ASSOCIA-
TIONS; TREATMENT OF STATE SAVINGS ASSO-
CIATIONS AS BANKS FOR PURPOSES OF FED-
ERAL BANKING LAW.
(a) TERMINATION OF FEDERAL SAVINGS ASSOCIA-
TION CHARTERS.—
(1) IN GENERAL.—Each Federal savings asso-
ciation shall—
(A) convert to a national bank charter;
(B) convert to a State depository institu-
tion charter; or
(C) surrender the charter of such savings
association and liquidate the institution.
(2) CONVERSION TO NATIONAL BANK BY OPER-
ATION OF LAW.—If any Federal savings association
has not taken any action required under paragraph
(1) as of January 1, 1998, the savings association
shall—
(A) become a national bank on such date
by operation of law;
(B) immediately file articles of association
and an organizational certificate with the
Comptroller of the Currency in accordance with
sections 5133, 5134, and 5135 of the Revised
Statutes of the United States; and
(C) cease to exist as a Federal savings as-
sociation as of such date.
(3) PROHIBITION ON NEW CHARTERS OF FED-
ERAL SAVINGS ASSOCIATIONS.—The Director of the
Office of Thrift Supervision may not grant any char-
ter for a Federal savings association for which an
application was received after the date of the enact-
ment of this Act.
(b) TREATMENT OF STATE SAVINGS ASSOCIATIONS
AS
BANKS
FOR
PURPOSES
OF
FEDERAL
BANKING
LAW.—
(1) AMENDMENTS
TO
FEDERAL
DEPOSIT
IN-
SURANCE ACT.—Section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813) is amended—
(A) by striking paragraph (2) of subsection
(a) and inserting the following new paragraph:
‘‘(2) STATE BANK.—
‘‘(A) IN GENERAL.—The term ‘State bank’
means any bank, banking association, trust
company, savings bank, industrial bank (or
similar depository institution which the Board
of Directors finds to be operating substantially
in the same manner as an industrial bank),
building and loan association, savings and loan
association, homestead association, cooperative
bank, or other banking institution—
‘‘(i) which is engaged in the business
of receiving deposits, other than trust
funds (as defined in this section); and
‘‘(ii) which—
‘‘(I) is incorporated under the
laws of any State;
‘‘(II) is organized and operating
according to the laws of the State in
which such institution is chartered or
organized; or
‘‘(III) is operating under the
Code of Law for the District of Co-
lumbia (except a national bank).
‘‘(B) 
CERTAIN
INSURED
BANKS
IN-
CLUDED.—The term ‘State bank’ includes any
cooperative bank or other unincorporated bank
the deposits of which were insured by the Cor-
poration on the day before the date of the en-
actment of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
‘‘(C) CERTAIN
UNINSURED
BANKS
EX-
CLUDED.—The term ‘State bank’ does not in-
clude any cooperative bank or other unincor-
porated bank the deposits of which were not in-
sured by the Corporation on the day before the
date of the enactment of the Financial Institu-
tions Reform, Recovery, and Enforcement Act
of 1989.’’; and
(B) in subsection (q)—
(i) by inserting ‘‘and’’ after the semi-
colon at the end of paragraph (2);
(ii) by striking ‘‘; and’’ at the end of
paragraph (3) and inserting a period; and
(iii) by striking paragraph (4).
(2) AMENDMENTS
TO
THE
BANK
HOLDING
COMPANY
ACT
OF
1956.—Section 2 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841) is
amended—
(A) by striking subparagraph (E) of sub-
section (a)(5); and
(B) by striking subparagraphs (B) and (J)
of subsection (c)(2).
(3) AMENDMENTS TO THE FEDERAL RESERVE
ACT.—The 2d and 3d paragraphs of the 1st section
of the Federal Reserve Act (12 U.S.C. 221) are each
amended by inserting ‘‘(as defined in section 3(a)(2)
of the Federal Deposit Insurance Act)’’ after ‘‘State
bank’’.
SEC. 2222. TREATMENT OF CERTAIN ACTIVITIES AND AF-
FILIATIONS OF BANK HOLDING COMPANIES
RESULTING FROM THIS ACT.
Section 4 of the Bank Holding Company Act of 1956
(12 U.S.C. 1843) is amended by adding at the end the
following new subsection:
‘‘(k) TREATMENT OF COMPANIES RESULTING FROM
SAVINGS AND LOAN HOLDING COMPANIES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section (other than paragraph (5))
or any other provision of Federal law including sec-
tions 20 and 32 of the Banking Act of 1933, a
qualified bank holding company may, after such
company becomes a bank holding company—
‘‘(A) maintain or enter into any non-
banking affiliation which such company was au-
thorized to maintain or enter into as of Septem-
ber 22, 1995, or was authorized to maintain
following a merger of insured depository institu-
tion subsidiaries pursuant to an application
filed no later than such date; and
‘‘(B) engage, directly or through any affili-
ate described in subparagraph (A) which is not
a bank, in any activity in which such company
or any affiliate described in subparagraph (A)
was authorized to engage as of September 22,
1995, or in which such company was authorized
to engage following a merger of insured deposi-
tory institution subsidiaries pursuant to an ap-
plication filed no later than such date,
if the requirements of paragraph (4) are met.
‘‘(2) QUALIFIED BANK HOLDING COMPANY DE-
FINED.—For purposes of this subsection, the term
‘qualified bank holding company’ means—
‘‘(A) any company which—
‘‘(i) as of September 13, 1995, is a
savings and loan holding company and is
not a bank holding company; and
‘‘(ii) becomes a bank holding company
after such date; and
‘‘(B) any bank holding company which as
of September 13, 1995—
‘‘(i) is a savings and loan holding
company; and
‘‘(ii) is exempt from this section pur-
suant to an order issued by the Board
under subsection (d).
‘‘(3) NO
LOSS
OF
SUBSECTION (d) EXEMP-
TION.—No qualified bank holding company de-
scribed in paragraph (2)(B) shall lose the grounds
for the exemption under subsection (d) because a
savings association which such company controlled,
directly or indirectly, as of September 13, 1995, be-
comes a bank after such date so long as such bank
continues to meet the requirements of subpara-
graphs (A) and (B) of paragraph (4).
‘‘(4) PREREQUISITES
FOR
CONTINUATION
OF
GRANDFATHERED ACTIVITIES AND AFFILIATIONS.—
This subsection shall cease to apply with respect to
a qualified bank holding company if, at any time
after such company first meets the definition of a
qualified bank holding company—
‘‘(A) any insured depository institution
controlled by such company which, as of the
day before the company first meets the defini-
tion of a qualified bank holding company, was
subject to the requirements contained in section
10(m) of the Home Owners’ Loan Act, as in ef-
fect on such date, (and regulations in effect on
such date under such section) for treatment as
a qualified thrift lender under such section fails
to meet such requirements;
‘‘(B) any insured depository institution
controlled by such company fails to comply with
any limitation or restriction on the type or
amounts of loans or investments of the institu-
tion to which such institution was subject as of
the date of the enactment of the Thrift Charter
Conversion Act of 1995; or
‘‘(C) the company or any subsidiary of the
company acquires more than 5 percent of the
shares or assets of any bank or insured institu-
tion after September 13, 1995.
‘‘(5) 
NONTRANSFERABLE.—This 
subsection
shall not apply with respect to any qualified bank
holding company if, after September 13, 1995, any
person acquires, directly or indirectly, control of the
company or the company is the subject of any merg-
er, consolidation, or other similar transaction.
‘‘(6) PROHIBITION ON CERTAIN INSURED DE-
POSITORY INSTITUTIONS IDENTIFYING THEMSELVES
AS NATIONAL BANKS.—
‘‘(A) IN
GENERAL.—Notwithstanding the
requirement of section 5134 of the Revised
Statutes of the United States—
‘‘(i) the name of an insured depository
institution subsidiary of a qualified bank
holding company which—
‘‘(I) as of the date of the enact-
ment of the Thrift Charter Conversion
Act of 1995, is a savings and loan
holding company described in section
10(c)(3) of the Home Owners’ Loan
Act (as in effect on such date); and
‘‘(II) is subject to the restrictions
contained in paragraph (3),
may not include the term ‘national’; and
‘‘(ii) such insured depository institu-
tion may not be identified as a national
bank on any sign displayed by the institu-
tion or in any advertisement or other pub-
lication of the institution.
‘‘(B) DEPOSITORY INSTITUTION NOT LIA-
BLE
FOR
FRAUDULENT
MISREPRESENTATION
FOR
NOT
REPRESENTING
ITSELF
AS
A
NA-
TIONAL BANK.—An insured depository institu-
tion which is subject to subparagraph (A) shall
not be liable for any civil or criminal penalty
under any Federal or State consumer protection
law, or in any criminal or civil action, for fraud-
ulently misrepresenting the nature of the char-
ter of the institution, for falsely advertising the
status of the institution, for making a false
statement with respect to the status of the in-
stitution, or for any similar offense by reason of
the institution’s compliance with such subpara-
graph.
‘‘(7) ENFORCEMENT.—In addition to any other
power of the Board, the Board may enforce compli-
ance with the provisions of this subsection with re-
spect to any qualified bank holding company and
any bank controlled by such company under section
8 of the Federal Deposit Insurance Act.’’.
SEC. 2223. TRANSITION PROVISIONS FOR ACTIVITIES OF
SAVINGS ASSOCIATIONS WHICH CONVERT
INTO OR BECOME TREATED AS BANKS.
Notwithstanding any other provision of Federal law,
any insured depository institution which, as of September
13, 1995, is a savings association (as defined in section
3(b) of the Federal Deposit Insurance Act (as in effect
on such date)) and after such date converts to a national
or State bank charter or becomes treated as a State bank
pursuant to the amendment made by section 2221(b) may
continue to engage, directly or indirectly, in any activity
in which such institution was lawfully engaged as of such
date during the 5-year period beginning on the effective
date of such conversion or the effective date of such
amendments, as the case may be.
SEC. 2224. REGISTRATION OF BANK HOLDING COMPANIES
RESULTING FROM CONVERSIONS OF SAV-
INGS ASSOCIATIONS TO BANKS OR TREAT-
MENT OF SAVINGS ASSOCIATIONS AS BANKS.
Section 3 of the Bank Holding Company Act of 1956
(12 U.S.C. 1842) is amended by adding at the end the
following new subsections:
‘‘(h) REGISTRATION OF CERTAIN BANK HOLDING
COMPANIES.—A company which, as of September 13,
1995, is a savings and loan holding company (as defined
in section 10(a)(1)(D) of Home Owners’ Loan Act (as in
effect on such date)) and is not a bank holding company
shall not be required to obtain the approval of the Board
under subsection (a) to become a bank holding company
after September 13, 1995, as a result of the conversion
of any insured depository institution subsidiary of such
company into a bank or by virtue of the treatment of any
insured depository institution subsidiary of such company
as a bank pursuant to the amendments made by the Thrift
Charter Conversion Act of 1995, if such company—
‘‘(1) registers as a bank holding company with
the Board in accordance with section 5(a); and
‘‘(2) does not acquire, directly or indirectly,
ownership or control of any additional insured de-
pository institution or other company in connection
with such conversion or treatment.
‘‘(i) REGULATION OF QUALIFIED BANK HOLDING
COMPANIES.—The Board shall regulate qualified bank
holding companies (as defined in section 4(k)(2)) in a
manner consistent with—
‘‘(1) the regulation of such companies by the
Director of the Office of Thrift Supervision before
the date of the enactment of the Thrift Charter Con-
version Act of 1995; and
‘‘(2) the safety and soundness of insured depos-
itory institution subsidiaries of such companies.’’.
SEC. 2225. ADDITIONAL TRANSITION PROVISIONS AND SPE-
CIAL RULES.
(a) MUTUAL NATIONAL BANKS AUTHORIZED; CON-
VERSION OF MUTUAL SAVINGS ASSOCIATIONS INTO NA-
TIONAL BANKS.—
(1) IN GENERAL.—Chapter one of title LXII of
the Revised Statutes of the United States (12
U.S.C. 21 et seq.) is amended by inserting after sec-
tion 5133 the following new section:
‘‘SEC. 5133A. MUTUAL NATIONAL BANKS.
‘‘(a) IN GENERAL.—Notwithstanding the paragraph
designated the ‘‘Third’’ of section 5134, the Comptroller
of the Currency may charter national banks organized in
the mutual form either de novo or through a conversion
of any stock national or State bank (as defined in section
3 of the Federal Deposit Insurance Act) or any State mu-
tual bank or credit union, subject to regulations prescribed
by the Comptroller of the Currency in accordance with this
section.
‘‘(b) REGULATIONS.—
‘‘(1) TRANSITION RULES.—National banks or-
ganized in the mutual form shall be subject to the
regulations of the Director of the Office of Thrift
Supervision governing corporate organization, gov-
ernance, and conversion of mutual institutions, as in
effect on September 13, 1995, including parts 543,
544, 546, 563b, and 563c of chapter V of title 12
of the Code of Federal Regulations (as in effect on
such date), during the 3-year period beginning on
the date of the enactment of the Thrift Charter Con-
version Act of 1995.
‘‘(2) REGULATIONS OF THE COMPTROLLER.—
The Comptroller of the Currency shall prescribe ap-
propriate regulations for national banks organized in
the mutual form, effective as of the end of the 3-
year period referred to in paragraph (1).
‘‘(3) APPLICABILITY
OF
CAPITAL
STOCK
RE-
QUIREMENTS.—The Comptroller of the Currency
shall prescribe regulations regarding the manner in
which requirements of title LXII of the Revised
Statutes of the United States with respect to capital
stock, and limitations imposed on national banks
under such title based on capital stock, shall apply
to national banks organized in mutual form pursu-
ant to subsection (a).
‘‘(c) CONVERSIONS.—
‘‘(1) 
CONVERSION
TO
STOCK
NATIONAL
BANK.—Subject to subsection (b)(1) and, after the
end of the 3-year period referred to in such sub-
section, such regulations as the Comptroller of the
Currency may prescribe for the protection of deposi-
tors’ rights and for any other purpose the Comptrol-
ler of the Currency may consider appropriate, any
national bank which is organized in mutual form
pursuant to paragraph (1) may reorganize as a
stock national bank.
‘‘(2) CONVERSIONS TO STATE BANKS.—Any na-
tional mutual bank may convert to a State bank
charter in accordance with regulations prescribed by
the Comptroller of the Currency and applicable
State law.’’.
(2) MUTUAL
BANK
HOLDING
COMPANIES.—
Subsection (g) of section 3 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(g)) is
amended to read as follows:
‘‘(g) MUTUAL BANK HOLDING COMPANIES.—
‘‘(1) IN
GENERAL.—A national mutual bank
may reorganize so as to become a holding company
by—
‘‘(A) chartering an interim national bank,
the stock of which is to be wholly owned, except
as otherwise provided in this section, by the na-
tional mutual bank; and
‘‘(B) transferring the substantial part of
the national mutual bank’s assets and liabil-
ities, including all of the bank’s insured liabil-
ities, to the interim national bank.
‘‘(2) DIRECTORS AND CERTAIN ACCOUNT HOLD-
ERS’ APPROVAL OF PLAN REQUIRED.—A reorganiza-
tion is not authorized under this subsection unless—
‘‘(A) a plan providing for such reorganiza-
tion has been approved by a majority of the
board of directors of the national mutual bank;
and
‘‘(B) in the case of a national mutual bank
in which holders of accounts and obligors exer-
cise voting rights, such plan has been submitted
to and approved by a majority of such individ-
uals at a meeting held at the call of the direc-
tors in accordance with the procedures pre-
scribed by the bank’s charter and bylaws.
‘‘(3) NOTICE TO THE BOARD; DISAPPROVAL PE-
RIOD.—
‘‘(A) NOTICE REQUIRED.—
‘‘(i) IN GENERAL.—At least 60 days
before taking any action described in para-
graph (1), a national mutual bank seeking
to establish a mutual holding company
shall provide written notice to the Board.
‘‘(ii) CONTENTS OF NOTICE.—The no-
tice shall contain such relevant information
as the Board shall require by regulation or
by specific request in connection with any
particular notice.
‘‘(B) TRANSACTION ALLOWED IF NOT DIS-
APPROVED.—Unless the Board within such 60-
day notice period disapproves the proposed
holding company formation, or extends for an-
other 30 days the period during which such dis-
approval may be issued, the national mutual
bank providing such notice may proceed with
the transaction, if the requirements of para-
graph (2) have been met.
‘‘(C) GROUNDS
FOR
DISAPPROVAL.—The
Board may disapprove any proposed holding
company formation only if—
‘‘(i) such disapproval is necessary to
prevent unsafe or unsound practices;
‘‘(ii) the financial or management re-
sources of the national mutual bank in-
volved warrant disapproval;
‘‘(iii) the national mutual bank fails
to furnish the information required under
subparagraph (A); or
‘‘(iv) the national mutual bank fails to
comply with the requirement of paragraph
(2).
‘‘(D) RETENTION OF CAPITAL ASSETS.—In
connection with the transaction described in
paragraph (1), a national mutual bank may,
subject to the approval of the Board, retain
capital assets at the holding company level to
the extent that the capital retained at the hold-
ing company is in excess of the amount of cap-
ital required in order for the interim national
bank to meet all relevant capital standards es-
tablished by the Comptroller of the Currency
for national banks.
‘‘(4) OWNERSHIP.—
‘‘(A) IN GENERAL.—Persons having own-
ership rights in the national mutual bank under
section 5133A of the Revised Statutes of the
United States (including paragraph 575.5 of
chapter V of title 12 of the Code of Federal
Regulations, as in effect on September 13,
1995, and applicable to national mutual banks
pursuant to such section) or State law shall
have the same ownership rights with respect to
the mutual holding company.
‘‘(B) HOLDERS OF CERTAIN ACCOUNTS.—
Holders of savings, demand, or other accounts
of—
‘‘(i) a national bank chartered as part
of a transaction described in paragraph
(1); or
‘‘(ii) a mutual bank acquired pursuant
to paragraph (5)(B),
shall have the same ownership rights with re-
spect to the mutual holding company as persons
described in subparagraph (A) of this para-
graph.
‘‘(5) PERMITTED ACTIVITIES.—A mutual hold-
ing company may engage only in the following activi-
ties:
‘‘(A) Investing in the stock of a national or
State bank.
‘‘(B) Acquiring a mutual bank through the
merger of such bank into a national bank sub-
sidiary of such holding company or an interim
national bank subsidiary of such holding com-
pany.
‘‘(C) Subject to paragraph (6), merging
with or acquiring another holding company, one
of whose subsidiaries is a national mutual bank.
‘‘(D) Investing in a corporation the capital
stock of which is available for purchase by a na-
tional mutual bank under Federal law or under
the law of any State where the home office of
any subsidiary bank is located.
‘‘(E) Engaging in the activities permitted
under section 4(c).
‘‘(6) LIMITATIONS ON CERTAIN ACTIVITIES OF
ACQUIRED HOLDING COMPANIES.—
‘‘(A) NEW ACTIVITIES.—If a mutual hold-
ing company acquires or merges with another
holding company under paragraph (5)(C), the
holding company acquired or the holding com-
pany resulting from such merger or acquisition
may only invest in assets and engage in activi-
ties which are authorized under paragraph (5).
‘‘(B) GRACE PERIOD FOR DIVESTING PRO-
HIBITED ASSETS OR DISCONTINUING PROHIB-
ITED ACTIVITIES.—Not later than 2 years fol-
lowing a merger or acquisition described in
paragraph (5)(C), the acquired holding com-
pany or the holding company resulting from
such merger or acquisition shall—
‘‘(i) dispose of any asset which is an
asset in which a mutual holding company
may not invest under paragraph (5); and
‘‘(ii) cease any activity which is an ac-
tivity in which a mutual holding company
may not engage under paragraph (5).
‘‘(7) 
CHARTERING
AND
OTHER
REQUIRE-
MENTS.—
‘‘(A) IN
GENERAL.—A mutual holding
company shall be chartered by the Board and
shall be subject to such regulations as the
Board may prescribe.
‘‘(B) OTHER REQUIREMENTS.—Unless the
context otherwise requires, a mutual holding
company shall be subject to the other require-
ments of this Act regarding regulation of hold-
ing companies.
‘‘(8) CAPITAL IMPROVEMENT.—
‘‘(A) PLEDGE OF STOCK OF SAVINGS ASSO-
CIATION
SUBSIDIARY.—This section shall not
prohibit a mutual holding company from pledg-
ing all or a portion of the stock of a national
bank chartered as part of a transaction de-
scribed in paragraph (1) to raise capital for
such bank.
‘‘(B) ISSUANCE OF NONVOTING SHARES.—
No provision of this Act shall be construed as
prohibiting a national bank chartered as part of
a transaction described in paragraph (1) from
issuing any nonvoting shares or less than 50
percent of the voting shares of such bank to
any person other than the mutual holding com-
pany.
‘‘(9) INSOLVENCY AND LIQUIDATION.—
‘‘(A) IN GENERAL.—Notwithstanding any
provision of law, upon—
‘‘(i) the default of any national
bank—
‘‘(I) the stock of which is owned
by any mutual holding company; and
‘‘(II) which was chartered in a
transaction described in paragraph
(1);
‘‘(ii) the default of a mutual holding
company; or
‘‘(iii) a foreclosure on a pledge by a
mutual holding company described in para-
graph (8)(A),
a trustee shall be appointed receiver of such
mutual holding company and such trustee shall
have the authority to liquidate the assets of,
and satisfy the liabilities of, such mutual hold-
ing company pursuant to title 11, United States
Code.
‘‘(B) DISTRIBUTION OF NET PROCEEDS.—
Except as provided in subparagraph (C), the
net proceeds of any liquidation of any mutual
holding company pursuant to subparagraph (A)
shall be transferred to persons who hold owner-
ship interests in such mutual holding company.
‘‘(C) RECOVERY BY CORPORATION.—If the
Corporation incurs a loss as a result of the de-
fault of any savings association subsidiary of a
mutual holding company which is liquidated
pursuant to subparagraph (A), the Corporation
shall succeed to the ownership interests of the
depositors of such savings association in the
mutual holding company, to the extent of the
Corporation’s loss.
‘‘(10) STATE
MUTUAL
BANK
HOLDING
COM-
PANY.—
‘‘(A) IN GENERAL.—Notwithstanding any
provision of Federal law, a State bank operat-
ing in mutual form may reorganize so as to
form a holding company under State law.
‘‘(B) REGULATION
OF
STATE
MUTUAL
HOLDING COMPANY.—A corporation organized
as a holding company in accordance with sub-
paragraph (A) shall be regulated on the same
terms and be subject to the same limitations as
any other holding company which controls a
bank.
‘‘(11) REGULATIONS.—
‘‘(A) TRANSITION
RULES.—Mutual bank
holding companies organized under this sub-
section shall be subject to the regulations of the
Director of the Office of Thrift Supervision gov-
erning corporate organization, governance, and
conversion of mutual institutions, as in effect
on September 13, 1995, including part 575 of
chapter V of title 12 of the Code of Federal
Regulations (as in effect on such date), during
the 3-year period beginning on the date of the
enactment of the Thrift Charter Conversion Act
of 1995.
‘‘(B) REGULATIONS OF THE BOARD.—The
Board shall prescribe appropriate regulations
for mutual holding companies, effective at the
end of the 3-year period referred to in subpara-
graph (A).
‘‘(12) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) MUTUAL
HOLDING
COMPANY.—The
term ‘mutual holding company’ means a cor-
poration organized as a holding company under
this subsection.
‘‘(B) 
DEFAULT.—The 
term 
‘default’
means an adjudication or other official deter-
mination of a court of competent jurisdiction or
other public authority pursuant to which a con-
servator, receiver, or other legal custodian is
appointed.
‘‘(C) NATIONAL MUTUAL BANK.—The term
‘national mutual bank’ means a national bank
organized in mutual form under section 5133A
of the Revised Statutes of the United States.’’.
(3) LIMITATION ON FEDERAL REGULATION OF
STATE
BANKS.—Except as otherwise provided in
Federal law, the Comptroller of the Currency, Board
of Governors of the Federal Reserve System, and
Federal Deposit Insurance Corporation may not
adopt or enforce any regulation which contravenes
the corporate governance rules prescribed by State
law or regulation for State banks unless the Comp-
troller, Board, or Corporation finds that such Fed-
eral regulation is necessary to assure the safety and
soundness of such State banks.
(4) CONVERSIONS OF MUTUAL SAVINGS ASSO-
CIATIONS TO MUTUAL NATIONAL BANKS BY OPER-
ATION OF LAW.—Notwithstanding any other provi-
sion of Federal or State law, any savings association
(as defined in section 3 of the Federal Deposit In-
surance Act (as in effect on September 13, 1995))
which is organized in mutual form as of the date of
the enactment of this Act may become a national
mutual bank by operation of law if the association—
(A) files the articles of association and or-
ganization certificate with the Comptroller of
the Currency before January 1, 1998, in ac-
cordance with chapter one of title LXII of the
Revised Statutes of the United States; and
(B) provides such other document or infor-
mation as the Comptroller of the Currency may
prescribe in regulations consistent with this sec-
tion and section 5133A of the Revised Statutes
of the United States (as added by paragraph
(1) of this subsection).
(5) CLERICAL AMENDMENT.—The table of sec-
tions for chapter one of title LXII of the Revised
Statutes of the United States (12 U.S.C. 21 et seq.)
is amended by inserting after the item relating to
section 5133 the following new item:
‘‘5133A.
Mutual national banks.’’.
(b) 
MEMBERSHIP
IN
FEDERAL
HOME
LOAN
BANKS.—Any insured depository institution which—
(1) as of the date of the enactment of this Act,
is a Federal savings association which, pursuant to
section 6(e) of the Federal Home Loan Bank Act,
may not voluntarily withdraw from membership in a
Federal home loan bank; and
(2) after such date converts from a Federal
savings association to a national bank,
shall continue to be subject to the prohibition under such
section on voluntary withdrawal from such membership as
though such bank were still a Federal savings association
until the bank ceases to be a national bank.
(c) BRANCHES.—
(1) IN GENERAL.—Notwithstanding any provi-
sion of the Federal Deposit Insurance Act, the Bank
Holding Company Act of 1956, or any other Federal
or State law, any depository institution which—
(A) as of the date of the enactment of this
Act, is a savings association; and
(B) becomes a bank before January 1,
1998, or, pursuant to the amendments made by
this subsection, is treated as a bank as of such
date under the Federal Deposit Insurance Act,
and any depository institution or bank holding com-
pany which acquires such depository institution, may
continue, after the depository institution becomes or
commences to be treated as a bank, to operate any
branch which the savings association operated as a
branch on September 13, 1995.
(2) NO
ADDITIONAL
BRANCHES.—Paragraph
(1) shall not be construed as authorizing the estab-
lishment, acquisition, or operation of any additional
branch of a depository institution in any State by
virtue of the operation by such institution of a
branch in such State pursuant to such paragraph
except to the extent such establishment, acquisition,
or operation is permitted under the Federal Deposit
Insurance Act, Bank Holding Company Act of 1956,
and any other applicable Federal or State law with-
out regard to such branch.
(d) TRANSITION PROVISION RELATING TO LIMITA-
TIONS ON LOANS TO 1 BORROWER.—Section 5200 of the
Revised Statutes of the United States (12 U.S.C. 84) is
amended by adding at the end the following new sub-
section:
‘‘(e) TRANSITION PROVISION FOR SAVINGS ASSOCIA-
TIONS CONVERTING TO NATIONAL BANKS.—In the case
of any depository institution which, as of September 13,
1995, is a savings association (as defined in section 3(b)
of the Federal Deposit Insurance Act (as in effect on such
date)) and becomes a national bank on or before January
1, 1998, any loan, or legally binding commitment to make
a loan, made or entered into by such institution which is
outstanding on the date the institution becomes a national
bank may continue to be held without regard to any limi-
tation contained in this section during the 3-year period
beginning on such date.’’.
SEC. 2226. TECHNICAL AND CONFORMING AMENDMENTS.
(a) AMENDMENTS TO THE FEDERAL DEPOSIT IN-
SURANCE ACT.—
(1) Section 3(z) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(z)) is amended by strik-
ing ‘‘the Director of the Office of Thrift Super-
vision,’’.
(2) Section 8(b) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818(b)) is amended by strik-
ing paragraph (9).
(3) Section 13 of the Federal Deposit Insurance
Act (12 U.S.C. 1823) is amended by striking sub-
section (k).
(4) Subsections (c)(2) and (i)(2) of section 18
of the Federal Deposit Insurance Act (12 U.S.C.
1828) are each amended—
(A) in subparagraph (B), by inserting
‘‘and’’ after the semicolon;
(B) in subparagraph (C), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (D).
(5) Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by striking sub-
section (m).
(6) The Federal Deposit Insurance Act (12
U.S.C. 1811 et seq.) is amended by striking section
28.
(b) AMENDMENTS TO THE BANK HOLDING COMPANY
ACT OF 1956.—
(1) Section 2 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841) is amended by strik-
ing subsections (i) and (j).
(2) Section 4(c)(8) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1843(c)(8)) is amend-
ed by striking the sentence preceding the penul-
timate sentence.
(3) Section 4(f) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(f)) is amended—
(A) in paragraph (2)(A)(i), by striking ‘‘or
an insured institution’’ and all that follows
through ‘‘of this subsection)’’;
(B) in paragraph (2)(A)(ii)—
(i) by striking ‘‘or a savings associa-
tion’’ where such term appears in the por-
tion of such paragraph which precedes
subclause (I);
(ii) by inserting ‘‘and’’ at the end of
subclause (VI);
(iii) by striking subclauses (VIII),
(IX), and (X); and
(iv) by striking ‘‘(V), and (VIII)’’,
where such term appears in the portion of
such paragraph which appears after the
end of subclause (VII), and inserting ‘‘and
(V)’’; and
(C) by striking paragraphs (10), (11),
(12), and (13).
(4) Section 4(i) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(i)) is amended—
(A) by striking paragraphs (1) and (2);
and
(B) in paragraph (3)(A), by striking ‘‘any
Federal savings association’’ and all that fol-
lows through the period at the end of such
paragraph and inserting ‘‘such association was
authorized to engage under this section as of
September 15, 1995.’’.
(c) OTHER TECHNICAL AND CONFORMING AMEND-
MENTS.—
(1) Section 804(a) of the Alternative Mortgage
Transaction Parity Act of 1982 (12 U.S.C. 3803) is
amended—
(A) in the portion of such subsection which
precedes paragraph (1)—
(i) 
by 
striking 
‘‘, 
and 
other
nonfederally chartered housing creditors,’’;
and
(ii) by inserting ‘‘and in order to per-
mit other nonfederally chartered housing
creditors to make, purchase, and enforce
alternative mortgage transactions,’’ after
‘‘enforcing alternative mortgage trans-
actions, ’’; and
(B) in paragraph (1), by inserting ‘‘(as
such term is defined in section 3(a) of the Fed-
eral Deposit Insurance Act)’’ after ‘‘with re-
spect to banks’’.
(2) Section 205 of the Depository Institution
Management Interlocks Act (12 U.S.C. 3204) is
amended—
(A) in the portion of paragraph (8)(A)
which precedes clause (i), by striking ‘‘A diver-
sified savings’’ and all that follows through
‘‘with respect to’’ and inserting ‘‘A depository
institution holding company which, as of Sep-
tember 13, 1995, and at all times thereafter, is
a diversified savings and loan holding company
(as defined in section 10(1)(F) of Home Own-
ers’ Loan Act, as such section is in effect on
such date) with respect to’’; and
(B) by striking paragraph (9).
(3) Section 19(b)(1)(A) of the Federal Reserve
Act (12 U.S.C. 461(b)(1)(A)) is amended—
(A) by inserting ‘‘and’’ after the semicolon
at the end of clause (v); and
(B) by striking clause (vi).
(4) Subparagraphs (A), (B), (C) of section
10(e)(5) of the Federal Home Loan Bank Act (12
U.S.C. 1430(e)(5)) are each amended by inserting
before the period at the end ‘‘(as such section is in
effect on September 13, 1995)’’.
SEC. 2227. REFERENCES TO SAVINGS ASSOCIATIONS AND
STATE BANKS IN FEDERAL LAW.
Effective January 1, 1998, any reference in any Fed-
eral banking law to—
(1) the term ‘‘savings association’’ shall be
deemed to be a reference to a bank as defined in
section 3(a) of the Federal Deposit Insurance Act;
and
(2) the term ‘‘State bank’’ shall be deemed to
include any depository institution included in the
definition of such term in section 3(a)(2) of such
Act.
SEC. 2228. REPEAL OF HOME OWNERS’ LOAN ACT.
Effective January 1, 1998, the Home Owners’ Loan
Act (12 U.S.C. 1461 et seq.) is hereby repealed.
SEC. 2229. EFFECTIVE DATE; DEFINITIONS.
(a) EFFECTIVE
DATE
OF
AMENDMENTS.—The
amendments made by this chapter shall take effect on
January 1, 1998.
(b) DEFINITIONS.—For purposes of this chapter, the
terms ‘‘appropriate Federal banking agency’’, ‘‘bank hold-
ing company’’, ‘‘depository institution’’, ‘‘Federal savings
association’’, ‘‘insured depository institution’’, ‘‘savings
association’’, and ‘‘State bank’’ have the same meanings
as in section 3 of the Federal Deposit Insurance Act (as
in effect on the date of the enactment of this Act).
CHAPTER 3—TRANSFER OF FUNCTIONS,
PERSONNEL, AND PROPERTY
SEC. 2241. OFFICE OF THRIFT SUPERVISION ABOLISHED.
Effective January 1, 1998, the Office of Thrift Su-
pervision and the position of Director of the Office of
Thrift Supervision are hereby abolished.
SEC. 2242. DETERMINATION OF TRANSFERRED FUNCTIONS
AND EMPLOYEES.
(a) ALL OFFICE OF THRIFT SUPERVISION EMPLOY-
EES SHALL BE TRANSFERRED.—All employees of the Of-
fice of Thrift Supervision shall be identified for transfer
under subsection (b) to the Office of the Comptroller of
the Currency, the Federal Deposit Insurance Corporation,
or the Board of Governors of the Federal Reserve System.
(b) FUNCTIONS AND EMPLOYEES TRANSFERRED.—
(1) IN GENERAL.—The Director of the Office of
Thrift Supervision, the Comptroller of the Currency,
the Chairperson of the Federal Deposit Insurance
Corporation, and the Chairman of the Board of Gov-
ernors of the Federal Reserve System shall jointly
determine the functions or activities of the Office of
Thrift Supervision, and the number of employees of
such Office necessary to perform or support such
functions or activities, which are transferred from
the Office to the Office of the Comptroller of the
Currency, the Federal Deposit Insurance Corpora-
tion, or the Board of Governors of the Federal Re-
serve System, as the case may be.
(2) ALLOCATION OF EMPLOYEES.—The Comp-
troller of the Currency, the Chairperson of the Fed-
eral Deposit Insurance Corporation, and the Chair-
man of the Board of Governors of the Federal Re-
serve System shall allocate the employees of the Of-
fice of Thrift Supervision consistent with the num-
ber determined pursuant to paragraph (1) in a man-
ner which such Comptroller, Chairperson, and Chair-
man, in their sole discretion, deem equitable, except
that, within work units, the agency preferences of
individual employees shall be accommodated as far
as possible.
(c) DISPOSITION OF AFFAIRS.—
(1) IN GENERAL.—In winding up the affairs of
the Office of Thrift Supervision, the Director of the
Office of Thrift Supervision shall consult and co-
operate with the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and the
Board of Governors of the Federal Reserve System,
as the case may be, to facilitate the orderly transfer
of the functions to such Comptroller, Corporation, or
Board.
(2) CONTINUING AUTHORITY OF DIRECTOR OF
THE OFFICE OF THRIFT SUPERVISION.—Except as
provided in paragraph (1), no provision of this sub-
title shall be construed as affecting the authority
vested in the Director of the Office of Thrift Super-
vision before the date of enactment of this Act which
is necessary to carry out the duties of the position
until the date upon which the position of Director of
the Office of Thrift Supervision is abolished.
(3) CONTINUATION
OF
AGENCY
SERVICES.—
Any agency, department, or other instrumentality of
the United States, or any successor to any such
agency, department, or instrumentality, which was
providing support services to the Director of the Of-
fice of Thrift Supervision on the day before the date
such position is abolished shall—
(A) continue to provide such services on a
reimbursable basis, in accordance with the
terms of the arrangement pursuant to which
such services were provided until the arrange-
ment is modified or terminated in accordance
with such terms, except that effective January
1, 1998, the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, or the
Board of Governors of the Federal Reserve Sys-