144
‘‘(ii) EXCEPTION FOR BANK HOLDING
COMPANY.—The term ‘savings and loan
holding company’ does not include any
company which is registered under, and
subject to, the provisions of the Bank
Holding Company Act of 1956, or any
company directly or indirectly controlled by
such company.’’.
(c) AMENDMENTS TO THE BANK HOLDING COMPANY
ACT OF 1956.—Section 4(i) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1843(i)) is amended by add-
ing at the end the following new paragraphs:
‘‘(4) SOLICITATION OF VIEWS.—
‘‘(A) NOTICE TO DIRECTOR.—Upon receiv-
ing any application or notice by a bank holding
company to acquire directly or indirectly a sav-
ings association under subsection (c)(8), the
Board shall solicit the Director’s comments and
recommendations with respect to such acquisi-
tion.
‘‘(B) COMMENT PERIOD.—The comments
and views of the Director under subparagraph
(A) with respect to any acquisition subject to
such subparagraph shall be transmitted to the
Board within 30 days of the receipt by the Di-
145
rector of the notice relating to such acquisition
(or such shorter period as the Board may speci-
fy if the Board advises the Director that an
emergency exists which requires expeditious ac-
tion).
‘‘(5) EXAMINATION.—
‘‘(A) SCOPE.—The Board shall consult
with the Director, as appropriate, in establish-
ing the scope of an examination by the Board
of a bank holding company that controls di-
rectly or indirectly a savings association.
‘‘(B) ACCESS TO INSPECTION REPORTS.—
Upon the request of the Director, the Board
shall furnish the Director with a copy of any in-
spection report, additional examination mate-
rials, or supervisory information relating to any
bank holding company which directly or indi-
rectly controls a savings association.
‘‘(6) COORDINATION
OF
ENFORCEMENT
EF-
FORTS.—The Board and the Director shall cooper-
ate in any enforcement action against any bank
holding company which controls a savings associa-
tion, if the relevant conduct involves such associa-
tion.
146
‘‘(7) DIRECTOR
DEFINED.—For purposes of
this section, the term ‘Director’ means the Director
of the Office of Thrift Supervision.’’.
(d) ALTERNATIVE TEST.—Section 10(m) of the
Home Owners’ Loan Act (12 U.S.C. 1467a(m)) is amend-
ed—
(1) in paragraph (1), by striking ‘‘(2) and (7)’’
and inserting ‘‘(2), (7), and (8)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(8) ALTERNATIVE TEST.—Any savings asso-
ciation which meets the requirements set forth in
section 7701(a)(19)(C) of the Internal Revenue
Code of 1986 shall be deemed to be a qualified thrift
lender and any qualified thrift lender shall be
deemed to meet the requirements of such section.’’.
SEC. 406. ELIMINATE REQUIREMENT THAT APPROVAL BE
OBTAINED FOR DIVESTITURES.
Section 2(g) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(g)) is amended—
(1) by striking paragraph (3);
(2) by inserting ‘‘and’’ after the semicolon at
the end of paragraph (1); and
(3) by striking ‘‘; and’’ at the end of paragraph
(2) and inserting a period.
147
SEC. 407. ELIMINATE UNNECESSARY BRANCH APPLICA-
TIONS.
(a) NATIONAL BANK BRANCH APPLICATIONS.—Sec-
tion 5155(i) of the Revised Statutes (12 U.S.C. 36(i)) is
amended—
(1) by striking ‘‘(i) No branch’’ and inserting
‘‘(i) RELOCATION.—
‘‘(1) APPROVAL
REQUIRED.—Except as pro-
vided in paragraph (2), no branch’’; and
(2) by adding at the end the following new
paragraphs:
‘‘(2) NO
APPROVAL
REQUIRED
FOR
CERTAIN
BRANCHES.—Notwithstanding this subsection or
subsection (b) or (c), the consent and approval of
the Comptroller of the Currency shall not be re-
quired for a national bank to establish and operate,
or to retain and operate, a branch or seasonal agen-
cy if—
‘‘(A) the bank is well capitalized (as de-
fined in section 38 of the Federal Deposit In-
surance Act and regulations prescribed by the
Comptroller of the Currency under such sec-
tion);
‘‘(B) the bank received a composite
CAMEL rating of ‘1’ or ‘2’ under the Uniform
Financial Institutions Rating System (or an
148
equivalent rating under a comparable rating
system) as of its most recent examination;
‘‘(C) the bank did not receive a ‘needs to
improve’ or ‘substantial noncompliance’ compos-
ite rating at its most recent examination under
the Community Reinvestment Act of 1977; and
‘‘(D) the Comptroller of the Currency is
otherwise authorized to grant approval under
this section to such bank to establish and oper-
ate, or to retain and operate, a branch or sea-
sonal agency at the proposed location.
‘‘(3) CERTAIN
BRANCHES
DEEMED
TO
HAVE
APPROVED
APPLICATIONS.—A branch or seasonal
agency established by a national bank under para-
graph (2) shall be deemed to have been established
and operated pursuant to an application approved
under this section.’’.
(b) STATE
MEMBER
BANK
BRANCH
APPLICA-
TIONS.—The 3d undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 321) is amended by
adding at the end the following: ‘‘Notwithstanding the pre-
ceding 2 sentences, the approval of the Board shall not
be required for a State member bank to establish and op-
erate a branch or seasonal agency if—
149
‘‘(A) the State member bank is well-capitalized
(as defined in section 38 of the Federal Deposit In-
surance Act and regulations prescribed by the Board
under such section);
‘‘(B) the State member bank received a com-
posite CAMEL rating of ‘1’ or ‘2’ under the Uni-
form Financial Institutions Rating System (or an
equivalent rating under a comparable rating sys-
tem);
‘‘(C) the State member bank did not receive a
‘needs to improve’ or ‘substantial noncompliance’
composite rating at its most recent examination
under the Community Reinvestment Act of 1977;
and
‘‘(D) the Board is otherwise authorized to grant
approval under this section to such State member
bank to establish and operate a branch or seasonal
agency at the proposed location.
A branch or seasonal agency established by a State mem-
ber bank under the previous sentence shall be deemed to
have been established and operated pursuant to an appli-
cation approved under this section.’’.
(c) STATE NONMEMBER BANK BRANCH APPLICA-
TIONS.—Section 18(d) of the Federal Deposit Insurance
150
Act (12 U.S.C. 1828(d)) is amended by adding at the end
the following new paragraphs:
‘‘(5) APPLICATION
EXEMPTION
FOR
CERTAIN
BANKS.—Notwithstanding paragraph (1), the con-
sent of the Corporation shall not be required for a
State nonmember insured bank to establish and op-
erate any domestic branch if—
‘‘(A) the bank is well-capitalized (as de-
fined in section 38 and regulations prescribed
by the Corporation under such section);
‘‘(B) the bank received a composite
CAMEL rating of ‘1’ or ‘2’ under the Uniform
Financial Institutions Rating System (or an
equivalent rating under a comparable rating
system) as of its most recent examination;
‘‘(C) the bank did not receive a ‘needs to
improve’ or ‘substantial noncompliance’ compos-
ite rating as result of the bank’s most recent
examination under the Community Reinvest-
ment Act of 1977; and
‘‘(D) the Corporation is otherwise author-
ized to give consent under this section to such
bank to establish and operate a domestic
branch at the proposed location.
151
‘‘(6) APPROVAL
GRANTED.—A branch estab-
lished by a State member bank under paragraph (5)
shall be deemed to have been established and oper-
ated pursuant to an application approved under this
section.’’.
SEC. 408. ELIMINATE BRANCH APPLICATIONS AND RE-
QUIREMENTS FOR ATMs AND SIMILAR FA-
CILITIES.
(a) DEFINITION
OF BRANCH UNDER NATIONAL
BANK ACT.—Section 5155(j) of the Revised Statutes (12
U.S.C. 36(j)) is amended—
(1) by striking ‘‘(j) The term’’ and inserting
‘‘(j) BRANCH.—
‘‘(1) IN GENERAL.—The term’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) CERTAIN
PROPRIETARY
ATMS
AND
RE-
MOTE SERVICING UNITS.—The term ‘branch’ does
not include any automated teller machine or remote
service unit which is owned and operated by a depos-
itory institution—
‘‘(A) primarily for the benefit of the insti-
tution and the affiliates of the institution; and
‘‘(B) which could operate a branch at the
location of such machine or unit.’’.
152
(b) DEFINITION OF BRANCH UNDER FEDERAL DE-
POSIT INSURANCE ACT.—Section 3(o) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(o)) is amended—
(1) by striking ‘‘(o) The term’’ and inserting
‘‘(o) DEFINITIONS RELATING TO BRANCHES.—
‘‘(1) DOMESTIC BRANCH.—
‘‘(A) IN GENERAL.—The term’’; and
(2) by striking ‘‘lent; and the term’’ and insert-
ing ‘‘lent.
‘‘(B) CERTAIN
PROPRIETARY
ATMS
AND
REMOTE SERVICING UNITS.—The term ‘domes-
tic branch’ does not include any automated tell-
er machine or remote service unit which is
owned and operated by a depository institu-
tion—
‘‘(i) primarily for the benefit of the in-
stitution and the affiliates of the institu-
tion; and
‘‘(ii) which could operate a branch at
the location of such machine or unit.
‘‘(2) FOREIGN BRANCH.—The term’’.
153
SEC. 409. ELIMINATE REQUIREMENT FOR APPROVAL OF IN-
VESTMENTS IN BANK PREMISES FOR WELL
CAPITALIZED AND WELL MANAGED BANKS.
Section 24A of the Federal Reserve Act (12 U.S.C.
371d) is amended by inserting before the period in that
section the following: ‘‘or, in the case of a bank which re-
ceived a composite CAMEL rating of ‘1’ or ‘2’ under the
Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system) as
of its most recent examination and, both before and imme-
diately following the investment or loan, is well capitalized
(as defined under section 38 of the Federal Deposit Insur-
ance Act), the amount which is equal to 150 percent of
the capital stock and surplus of such bank’’.
SEC. 410. ELIMINATE UNNECESSARY FILING FOR OFFICER
AND DIRECTOR APPOINTMENTS.
Section 32(d) of the Federal Deposit Insurance Act
(12 U.S.C. 1831i(d)) is amended to read as follows:
‘‘(d) ADDITIONAL INFORMATION.—
‘‘(1) IN GENERAL.—Any notice submitted to an
appropriate Federal banking agency with respect to
an individual by any insured depository institution
or depository institution holding company pursuant
to subsection (a) shall include—
‘‘(A) the information described in section
7(j)(6)(A) about the individual; and
154
‘‘(B) such other information as the agency
may prescribe by regulation.
‘‘(2) WAIVER.—An appropriate Federal bank-
ing agency may waive the requirement of this section
by regulation or on a case-by-case basis consistent
with safety and soundness.’’.
SEC. 411. STREAMLINING PROCESS FOR DETERMINING
NEW NONBANKING ACTIVITIES.
Section 4(c)(8) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(8)) is amended by striking
‘‘and opportunity for hearing’’.
SEC. 412. DISPOSITION OF FORECLOSED ASSETS.
Section 4(c)(2) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(2)) is amended—
(1) by striking ‘‘for not more than one year at
a time’’; and
(2) by striking ‘‘but no such extensions shall ex-
tend beyond a date five years’’ and inserting ‘‘and,
in the case of a bank holding company which has
not disposed of such shares within 5 years of the
date such shares were acquired, the Board may,
upon the application of such company, grant addi-
tional exemptions if, in the Board’s judgment, such
extension would not be detrimental to the public in-
terest and either the bank holding company has
155
made a good faith attempt to dispose of such shares
during such 5-year period or the disposal of such
shares during such 5-year period would have been
detrimental to the company, but the aggregate dura-
tion of such extensions shall not extend 10 years’’.
SEC. 413. INCREASE IN CERTAIN CREDIT UNION LOAN
CEILINGS.
Section 107(5)(A) of the Federal Credit Union Act
(12 U.S.C. 1757(5)(A)) is amended—
(1) in clause (iv), by striking ‘‘$10,000’’ and in-
serting ‘‘$50,000’’; and
(2) in clause (v), by striking ‘‘$10,000’’ and in-
serting ‘‘$50,000’’.
Subtitle B—Streamlining of Gov-
ernment 
Regulations; 
Mis-
cellaneous Provisions
SEC. 421. ELIMINATE THE PER-BRANCH CAPITAL REQUIRE-
MENT FOR NATIONAL BANKS AND STATE
MEMBER BANKS.
Section 5155 of the Revised Statutes (12 U.S.C. 36)
is amended—
(1) by striking subsection (h); and
(2) by redesignating subsections (i) (as amend-
ed by section 407(a) of this title), (j) (as amended
156
by section 408(a) of this title), (k), and (l) as sub-
sections (h), (i), (j), and (k), respectively.
SEC. 422. BRANCH CLOSURES.
(a) IN GENERAL.—Section 42 of the Federal Deposit
Insurance Act (12 U.S.C. 1831r–1) is amended by adding
at the end the following new subsection:
‘‘(e) SCOPE OF APPLICATION.—
‘‘(1) IN GENERAL.—This section shall not apply
with respect to—
‘‘(A) an automated teller machine;
‘‘(B) a branch which—
‘‘(i) has been acquired through merg-
er, consolidation, purchase, assumption, or
other method; and
‘‘(ii) is located—
‘‘(I) within 2.5 miles of another
branch of the acquiring institution; or
‘‘(II) within a neighborhood cur-
rently being served by another branch
of the acquiring institution,
if such other branch of the acquiring institution
is expected to continue to provide banking serv-
ices to substantially all of the customers cur-
rently served by the branch acquired;
157
‘‘(C) a branch which is closing and reopen-
ing at a location which is—
‘‘(i) within 2.5 miles of the location of
the branch being closed; or
‘‘(ii) within the same neighborhood as
the branch being closed,
if the branch at the new location is expected to
continue to provide banking services to substan-
tially all of the customers served by the branch
at the former location;
‘‘(D) a branch that is closed in connection
with—
‘‘(i) an emergency acquisition under—
‘‘(I) section 11(n); or
‘‘(II) subsections (f) or (k) of
section 13; or
‘‘(ii) any assistance provided by the
Corporation under section 13(c); and
‘‘(E) any other branch closure whose ex-
emption from the notice requirements of this
section would not produce a result inconsistent
with the purposes of this section.
‘‘(2) REGULATIONS.—The appropriate Federal
banking agency shall, by regulation, determine the
158
circumstances under which any exemption under
paragraph(1)(E) may be granted.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply as if such amendment had been
included in section 42 of the Federal Deposit Insurance
Act as of the date of the enactment of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
SEC. 423. AMENDMENTS TO THE DEPOSITORY INSTITU-
TIONS MANAGEMENT INTERLOCKS ACT.
(a) DUAL SERVICE IN SAME AREA, TOWN, OR VIL-
LAGE.—Section 203 of the Depository Institution Man-
agement Interlocks Act (12 U.S.C. 3202) is amended—
(1) by inserting ‘‘(a) PROHIBITIONS.—’’ before
‘‘A management official’’; and
(2) by adding after subsection (a) the following
new subsection:
‘‘(b) SMALL MARKET SHARE EXEMPTION.—
‘‘(1) IN GENERAL.—This section shall not be
construed as prohibiting a management official of a
depository institution or depository holding company
from serving as a management official of another de-
pository institution or depository holding company
not affiliated with such institution or holding com-
pany if the depository institutions or depository
holding companies with which the management offi-
159
cial serves hold, together with all the affiliates of
such institutions or holding companies, in the aggre-
gate no more that 20 percent of the deposits in each
relevant geographic banking market where offices of
the depository institutions or depository holding
companies or their affiliates are located.
‘‘(2) RELEVANT GEOGRAPHIC BANKING MARKET
DEFINED.—For purposes of paragraph (1), the term
‘relevant geographic banking market’ means—
‘‘(A) the area defined by the boundaries
identified by the Board of Governors of the
Federal Reserve System;
‘‘(B) if the Board has not defined such
boundaries, the area defined by the boundaries
of the Ranally Metropolitan Area in which the
office of the depository institution or the depos-
itory institution holding company is located;
and
‘‘(C) if the office of such institution or
company is not located within a Ranally Metro-
politan Area, the area defined by the county (or
an equivalent area of general local government)
in which such office is located.’’.
(b) DUAL SERVICE AMONG LARGER ORGANIZA-
TIONS.—Section 204 of the Depository Institution Man-
160
agement Interlocks Act (12 U.S.C. 3203) is amended to
read as follows:
‘‘SEC. 204. DUAL SERVICE AMONG LARGER ORGANIZA-
TIONS.
‘‘(a) IN GENERAL.—If a depository institution, de-
pository institution holding company, or depository insti-
tution affiliate of any such institution or company has
total assets exceeding $2,500,000,000, a management offi-
cial of such institution, company, or affiliate may not serve
as a management official of any other depository institu-
tion, depository institution holding company, or depository
institution affiliate of any such institution or company
which—
‘‘(1) is not an affiliate of the institution, com-
pany, or affiliate of which such person is a manage-
ment official; and
‘‘(2) has total assets exceeding $1,500,000,000.
‘‘(b) CPI ADJUSTMENTS.—The dollar amounts in
this section shall be adjusted annually after December 31,
1994, by the annual percentage increase in the Consumer
Price Index for Urban Wage Earners and Clerical Work-
ers published by the Bureau of Labor Statistics.’’.
(c) EXTENSION OF GRANDFATHER EXEMPTION.—
Section 206 of the Depository Institution Management
Interlocks Act (12 U.S.C. 3205) is amended—
161
(1) in subsection (a), by striking ‘‘for a period
of, subject to the requirements of subsection (c), 20
years after the date of enactment of this title’’;
(2) in subsection (b), by striking the 2d sen-
tence; and
(3) by striking subsection (c).
(d) RULES OR REGULATIONS.—Section 209 of the
Depository Institution Management Interlocks Act (12
U.S.C. 3207) is amended—
(1) by striking ‘‘(a) IN GENERAL.—Rules’’ and
inserting ‘‘Rules’’;
(2) by inserting ‘‘, including rules or regula-
tions which permit service by a management official
which would otherwise be prohibited by section 203
or section 204,’’ after ‘‘title’’; and
(3) by striking subsections (b) and (c).
SEC. 424. ACCELERATION OF REPAYMENT TO TREASURY.
The Appraisal Subcommittee of the Financial Institu-
tions Examination Council shall repay to the Secretary of
the Treasury the funds specified in section 1108 of Finan-
cial Institutions Reform, Recovery, and Enforcement Act
of 1989 by not later than September 30, 1998, and the
Secretary shall deposit such funds in the general fund of
the Treasury.
162
SEC. 425. ELIMINATE UNNECESSARY AND DUPLICATIVE
RECORDKEEPING AND REPORTING REQUIRE-
MENTS RELATING TO LOANS TO EXECUTIVE
OFFICERS AND PERMIT PARTICIPATION IN
EMPLOYEE BENEFIT PLANS.
(a) AMENDMENTS TO SECTION 22(h) OF THE FED-
ERAL RESERVE ACT.—
(1) 
EMPLOYEE
BENEFIT
PLANS.—Section
22(h)(2) of the Federal Reserve Act (12 U.S.C.
375b(2)) is amended—
(A) by redesignating subparagraphs (A),
(B), and (C) as clauses (i), (ii), and (iii), re-
spectively, and moving the left margins of such
clauses 2 ems to the right;
(B) 
by 
striking 
‘‘(2) 
PREFERENTIAL
TERMS PROHIBITED.—A member bank’’ and in-
serting ‘‘(2) PREFERENTIAL
TERMS
PROHIB-
ITED.—
‘‘(A) IN GENERAL.—A member bank’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(B) EXCEPTION.—No provision of this
paragraph shall be construed as prohibiting ex-
tensions of credit that constitute a benefit or
compensation program that is widely available
to and used by employees of the member bank,
163
including employees who are not executive offi-
cers of the bank.’’.
(2) EXCEPTION FOR EXTENSIONS OF CREDIT
TO
EXECUTIVE
OFFICERS
AND
DIRECTORS
OF
NONBANK AFFILIATES.—Section 22(h)(8)(B) of the
Federal Reserve Act (12 U.S.C. 375b(8)(B)) is
amended to read as follows:
‘‘(B) EXCEPTION.—The Board may, by
regulation, make exceptions to subparagraph
(A) for an executive officer or director of a sub-
sidiary of a company that controls the member
bank if—
‘‘(i) the executive officer or director
does not have authority to participate, and
does not participate, in major policymaking
functions of the member bank; and
‘‘(ii) the assets of such subsidiary do
not exceed 10 percent of the consolidated
assets of a company that controls the
member bank and such subsidiary (and is
not controlled by any other company).’’.
(3) RECORDKEEPING REQUIREMENTS.—Section
22(h)(10) of the Federal Reserve Act (12 U.S.C.
375b(10)) is amended by adding at the end the fol-
lowing: ‘‘The Board shall specify by regulation the
164
recordkeeping required of member banks to ensure
compliance with this section.’’.
(b) REPORTING REQUIREMENTS.—
(1) UNNECESSARY REPORTS.—Section 22(g) of
the Federal Reserve Act (12 U.S.C. 375a) is amend-
ed—
(A) by striking paragraphs (6) and (9);
and
(B) by redesignating paragraphs (7), (8),
and (10) as paragraphs (8), (9), and (10), re-
spectively.
(2) UNNECESSARY REPORTS.—Section 7 of the
Federal Deposit Insurance Act (12 U.S.C. 1817) is
amended by striking subsection (k).
(3) UNNECESSARY REPORTS REGARDING LOANS
FROM CORRESPONDENT BANKS.—Section 106(b)(2)
of the Bank Holding Company Act Amendments of
1970 (12 U.S.C. 1972(2)) is amended—
(A) by striking subparagraph (G); and
(B) by redesignating subparagraphs (H)
and (I) as subparagraphs (G) and (H), respec-
tively.
(c) AMENDMENTS RELATING TO LOANS TO EXECU-
TIVE OFFICERS.—Section 22(g) of the Federal Reserve
165
Act (12 U.S.C. 375a) (as amended by subsection (a) of
this section) is amended—
(1) in paragraph (1)(D), by striking ‘‘of any
one of the three categories respectively referred to in
paragraphs (2), (3), and (4)’’ and inserting ‘‘of any
category referred to in paragraph (2), (3), (4), (5),
or (6)’’;
(2) by redesignating paragraphs (4) and (5) as
paragraphs (6) and (7), respectively;
(3) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) HOME
EQUITY
LINES
OF
CREDIT.—A
member bank may make a revolving open-end exten-
sion of credit to any executive officer of the bank if
the credit—
‘‘(A) does not exceed $100,000; and
‘‘(B) is secured by a dwelling that is owned
by such officer and used by the officer as a res-
idence.
‘‘(5) LOANS
SECURED
BY
MARKETABLE
AS-
SETS.—A member bank may extend credit to any
executive officer of the bank if the credit is secured
by readily marketable assets of a value not exceeding
such amount as the Board may establish by regula-
tion.’’; and
166
(4) in paragraph (7) (as so redesignated by
paragraph (2) of this subsection) by striking ‘‘(4)’’
each place such term appears and inserting ‘‘(6)’’.
SEC. 
426. 
EXPANDED 
REGULATORY 
DISCRETION 
FOR
SMALL BANK EXAMINATIONS.
(a) SMALL BANK SIZE DISCRETION.—Section 10(d)
of the Federal Deposit Insurance Act (12 U.S.C. 1820(d))
is amended—
(1) by redesignating paragraph (9) as para-
graph (10);
(2) by redesignating the 2d of the 2 paragraphs
designated as paragraph (8) as paragraph (9); and
(3) in paragraph (9) (as so redesignated), by
striking 
‘‘$175,000,000’’ 
and 
inserting
‘‘$250,000,000’’.
(b) INFLATION ADJUSTMENT.—Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is
amended by inserting after paragraph (10) (as so redesig-
nated in subsection (a)(1) of this section) the following
new paragraph:
‘‘(11) ANNUAL CPI ADJUSTMENT.—The dollar
amount in this section shall be adjusted annually
after December 31, 1994, by the annual percentage
increase in the Consumer Price Index for Urban
167
Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.’’.
(c) COORDINATED FEDERAL AND STATE EXAMINA-
TIONS.—The Federal banking agencies (as defined in sec-
tion 3 of the Federal Deposit Insurance Act) shall submit
semiannual reports to the Congress on the progress made
by such agencies in implementing the requirements of sec-
tion 10(d)(6) of the Federal Deposit Insurance Act until
such agencies submit a final report that—
(1) the examination system provided for in such
section is in place; and
(2) such system provides for full coordination of
examinations of State depository institutions with
State bank supervisors.
SEC. 427. COST REIMBURSEMENT.
Section 1115 of the Right to Financial Privacy Act
(12 U.S.C. 3415) is amended by inserting ‘‘(including cor-
porate customers)’’ after ‘‘pertaining to a customer’’.
SEC. 428. IDENTIFICATION OF FOREIGN NONBANK FINAN-
CIAL INSTITUTION CUSTOMERS.
(a) IN GENERAL.—Section 5327(a)(1) of title 31,
United States Code, is amended to read as follows:
‘‘(1) is a financial institution (other than a for-
eign bank (as defined in section 101(b) of the Inter-
168
national Banking Act of 1978)) which is a foreign
person; and’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The heading for section 5327 of title 31, United States
Code, is amended by inserting ‘‘FOREIGN NONBANK’’
after ‘‘OF’’.
(c) CLERICAL AMENDMENT.—The table of sections
for chapter 53 of title 31, United States Code, is amended
by striking the item relating to section 5327 and inserting
the following new item:
‘‘5327. Identification of foreign nonbank financial institutions.’’.
SEC. 429. PAPERWORK REDUCTION REVIEW.
(a) IN GENERAL.—Not later than 180 days after the
date of enactment of this Act, each appropriate Federal
banking agency and the National Credit Union Adminis-
tration, in consultation with insured depository institu-
tions, insured credit unions, and other interested parties,
shall—
(1) review the extent to which current regula-
tions require insured depository institutions and in-
sured credit unions to produce unnecessary internal
written policies; and
(2) eliminate such requirements, where appro-
priate.
(b) DEFINITIONS.—For purposes of this section, the fol-
lowing definitions shall apply:
169
(1) INSURED
DEPOSITORY
INSTITUTION; AP-
PROPRIATE
FEDERAL
BANKING
AGENCY.—The
terms ‘‘insured depository institution’’ and ‘‘appro-
priate Federal banking agency’’ have the meanings
given to such terms in section 3 of the Federal De-
posit Insurance Act.
(2) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the meaning given to such
term in section 101(7) of the Federal Credit Union
Act.
SEC. 430. DAILY CONFIRMATIONS FOR HOLD-IN-CUSTODY
REPURCHASE TRANSACTIONS.
(a) IN GENERAL.—Before the end of the 1-year pe-
riod beginning on the date of the enactment of this Act,
the Secretary of the Treasury shall revise the regulation
under section 15C of the Securities Exchange Act of 1934
relating to the obligations of financial institutions and of
brokers and dealer registered under such Act holding cus-
tody of securities subject to a repurchase agreement to
confirm, daily and in writing, the securities that are sub-
ject to such repurchase agreement.
(b) REQUIREMENTS FOR REVISION.—The revision re-
quired under subsection (a) shall permit the counterparty
to such agreement to waive in writing the right to obtain
such daily written confirmation if the counterparty has re-
170
ceived a clear and conspicuous disclosure before entering
into any side agreement, in a form prescribed by the Sec-
retary, that adequately informs the counterparty of the
benefits of receiving such daily written confirmations.
SEC. 431. REQUIRED REGULATORY REVIEW OF REGULA-
TIONS.
(a) IN GENERAL.—Not less frequently than once
every 10 years, the Financial Institutions Examination
Council (hereafter in this section referred to as the ‘‘Coun-
cil’’) and each appropriate Federal banking agency (as de-
fined in section 3(q) of the Federal Deposit Insurance
Act) represented on the Council shall conduct a review of
all regulations prescribed by the Council or by any such
agency, respectively, in order to identify outdated or other-
wise unnecessary regulatory requirements imposed upon
insured depository institutions.
(b) PROCESS.—In conducting the review under sub-
section (a), the Council or the appropriate Federal bank-
ing agency shall—
(1) categorize the regulations by type (such as
consumer regulations, safety and soundness regula-
tions, or such other designations as determined by
the Council); and
(2) at regular intervals, provide notice and so-
licit public comment on a particular category or cat-
171
egories of regulations, requesting commentators to
identify areas of the regulations that are outdated,
unnecessary, or unduly burdensome.
(c) COMPLETE REVIEW.—The Council or the appro-
priate Federal banking agency shall ensure that the notice
and comment period described in subsection (b)(2) is con-
ducted with respect to all regulations described in sub-
section (a) not less frequently than once every 10 years.
(d) REGULATORY RESPONSE.—The Council or the
appropriate Federal banking agency shall—
(1) publish in the Federal Register a summary
of the comments received under this section, identi-
fying significant issues raised and providing com-
ment on such issues; and
(2) eliminate unnecessary regulations to the ex-
tent that such action is appropriate.
(e) REPORT TO CONGRESS.—Not later than 30 days
after carrying out subsection (d)(1), the Council shall pro-
vide to the Congress a report, which shall include—
(1) a summary of any significant issues raised
by public comments received by the Council and the
appropriate Federal banking agencies under this sec-
tion and the relative merits of such issues; and
(2) an analysis of whether the appropriate Fed-
eral banking agency involved is able to address the
172
regulatory burdens associated with such issues by
regulation, or whether such burdens must be ad-
dressed by legislative action.
SEC. 432. COUNTRY RISK REQUIREMENTS.
Subsections (a)(1) and (b) of section 905 of the
International Lending Supervision Act of 1983 (12 U.S.C.
3904) are amended by striking ‘‘shall’’ and inserting
‘‘may’’.
SEC. 433. AUDIT COSTS.
(a) IN GENERAL.—
(1) AUDITOR
ATTESTATIONS.—Section 36 of
the Federal Deposit Insurance At (12 U.S.C.
1831m) is amended—
(A) in subsection (a)(2)(A)(ii), by striking
‘‘subsections (c) and (d)’’ and inserting ‘‘sub-
section (c)’’;
(B) by striking subsections (c) and (e);
and
(C) by redesignating subsections (d), (f),
(g), (h), (i), and (j) as subsections (c), (d), (e),
(f), (g), and (h), respectively.
(2) PUBLIC AVAILABILITY.—Section 36(a)(3) of
the Federal Deposit Insurance Act (12 U.S.C.
1831m(a)(3)) is amended by inserting at the end the
following new sentence: ‘‘Notwithstanding the pre-
173
ceding sentence, the Corporation and the appro-
priate Federal banking agencies may designate cer-
tain information as privileged and confidential and
not available to the public.’’.
(b) EXEMPTION
FOR
WELL-CAPITALIZED
AND
WELL-MANAGED
INSURED
DEPOSITORY
INSTITU-
TIONS.—Section 36 of the Federal Deposit Insurance Act
(12 U.S.C. 1831m) (as amended by subsection (a) of this
section) is amended by adding at the end the following
new subsection:
‘‘(i) EXEMPTION
FOR
WELL-CAPITALIZED
AND
WELL-MANAGED
INSURED
DEPOSITORY
INSTITU-
TIONS.—No provision of this section other than subsection
(c) shall apply with respect to any insured depository insti-
tution which is well-capitalized and well-managed.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (1)(B) of section 36(e) of the
Federal Deposit Insurance Act (as so redesignated
by subsection (a)(1)(C) of this section) is amended
by striking ‘‘(b)(2), (c), and (d)’’ and inserting
‘‘(b)(2) and (c)’’.
(2) Paragraph (1) of section 36(g) of the Fed-
eral Deposit Insurance Act (as so redesignated by
subsection (a)(1)(C) of this section) is amended by
striking ‘‘(d)’’ and inserting ‘‘(c)’’.
174
SEC. 434. STANDARDS FOR DIRECTOR AND OFFICER LI-
ABILITY.
Section 3(u) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(u)) is amended—
(1) in paragraph (1), by inserting ‘‘(other than
an outside director)’’ after ‘‘director’’;
(2) in paragraph (3), by inserting ‘‘(other than
an outside director)’’ after ‘‘any other person’’; and
(3) in paragraph (4), by inserting ‘‘or outside
director’’ after ‘‘or accountant)’’.
SEC. 435. FOREIGN BANK APPLICATIONS.
(a) PROVISIONS RELATING TO ESTABLISHMENT OF
BANK OFFICES.—Section 7(d) of the International Bank-
ing Act of 1978 (12 U.S.C. 3105(d)) is amended—
(1) in paragraph (2), by striking ‘‘The’’ and in-
serting ‘‘Except as provided in paragraph (6), the’’;
(2) in paragraph (5), by striking ‘‘Consistent
with the standards for approval in paragraph (2),
the’’ and inserting ‘‘The’’; and
(3) by adding at the end the following new
paragraphs:
‘‘(6) EXCEPTION.—
‘‘(A) IN GENERAL.—If the Board is unable
to find under paragraph (2) that a foreign bank
is subject to comprehensive supervision or regu-
lation on a consolidated basis by the appro-
175
priate authorities in its home country, the
Board may nevertheless approve an application
under paragraph (1) by such foreign bank if—
‘‘(i) the appropriate authorities in the
home country of such foreign bank are
working to establish arrangements for the
consolidated supervision of such bank; and
‘‘(ii) all other factors are consistent
with approval.
‘‘(B) 
ADDITIONAL
CONDITIONS.—The
Board, after requesting and considering the
views of the appropriate State bank supervisor
or the Comptroller of the Currency, as the case
may be, may impose such conditions or restric-
tions relating to activities or business oper-
ations of the proposed branch, agency, or com-
mercial lending company subsidiary, including
restrictions on sources of funding, as are con-
sidered appropriate in the public interest.
‘‘(C) MODIFICATION
OF
CONDITIONS.—
Any condition or restriction imposed by the
Board under this subsection in connection with
the approval of an application may be varied or
withdrawn where such modification is consistent
with the public interest.
176
‘‘(7) TIME PERIOD FOR BOARD ACTION.—
‘‘(A) FINAL
ACTION.—The Board shall
take final action on any application under para-
graph (1) within 180 days of receipt of the ap-
plication, except that the Board may extend for
an additional 180 days the period within which
to take final action on such application, after
providing notice of, and the reasons for, the ex-
tension to the applicant foreign bank and any
appropriate State bank supervisor or the Comp-
troller of the Currency, as the case may be.
‘‘(B) FAILURE
TO
SUBMIT
INFORMA-
TION.—The Board may deny any application if
it has not received information requested from
the applicant foreign bank or appropriate au-
thorities in the home country in sufficient time
to permit the Board to evaluate such informa-
tion adequately within the time periods for final
action set forth in subparagraph (A).
‘‘(C) WAIVER.—A foreign bank may waive
the applicability of subparagraph (A) with re-
spect to any such application.’’.
(b) PROVISION RELATING TO TERMINATION
OF
BANK OFFICES.—Section 7(e)(1)(A) of the International
177
Banking Act of 1978 (12 U.S.C. 3105(e)(1)(A)) is amend-
ed—
(1) by striking ‘‘(A)’’ and inserting ‘‘(A)(i)’’;
(2) by striking ‘‘; or’’ and inserting ‘‘; and’’;
and
(3) by inserting at the end the following new
clause:
‘‘(ii) the appropriate authorities in the
home country are not making progress in estab-
lishing arrangements for the comprehensive su-
pervision or regulation of such foreign bank on
a consolidated basis; or’’.
(c) UNIFORM TERMINATIONS OF FOREIGN BANK OF-
FICES, AGENCIES, BRANCHES, AND SUBSIDIARIES BY THE
FEDERAL RESERVE SYSTEM.—
(1) IN GENERAL.—Section 7(e)(1) of the Inter-
national 
Banking 
Act 
of 
1978 
(12 
U.S.C.
3105(e)(1)) is amended—
(A) by inserting ‘‘or the Comptroller of the
Currency’’ after ‘‘State bank supervisor’’;
(B) by inserting ‘‘or a Federal branch or
agency’’ after ‘‘commercial lending company
subsidiary’’ the 1st place such term appears;
and
178
(C) in the last sentence, by inserting ‘‘or
a Federal branch or agency’’ after ‘‘commercial
lending company subsidiary’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—Section 7(e) of the International Banking
Act of 1978 (12 U.S.C. 3105(e)) is amended—
(A) by striking paragraph (5); and
(B) by redesignating paragraphs (6) and
(7) as paragraphs (5) and (6), respectively.
SEC. 436. DUPLICATE EXAMINATION OF FOREIGN BANKS.
Section 7(c)(1) of the International Banking Act of
1978 (12 U.S.C. 3105(c)(1)) is amended—
(1) by adding after clause (ii) of subparagraph
(B) the following new clause:
‘‘(iii) AVOIDANCE OF DUPLICATION.—
In exercising its authority under this para-
graph, the Board shall take all reasonable
measures to reduce burden and avoid un-
necessary duplication of examinations.’’;
(2) by striking subparagraph (C) and inserting
the following:
‘‘(C) ON-SITE EXAMINATION.—Each Fed-
eral branch or agency, and each State branch
or agency, of a foreign bank shall be subject to
on-site examination by a Federal banking agen-
179
cy or State bank supervisor as frequently as
would a national bank or State bank, respec-
tively, by its appropriate Federal banking agen-
cy.’’; and
(3) by amending subparagraph (D) to read as
follows:
‘‘(D) COST OF EXAMINATIONS.—The cost
of any examination undertaken pursuant to
subparagraph (A) shall be assessed against and
collected from the foreign bank or the foreign
company that controls the foreign bank, as the
case may be, but only to the same extent that
fees are collected by the Board for examination
of any State member insured bank.’’.
SEC. 437. SECOND MORTGAGES.
(a) IN GENERAL.—Section 103(aa)(1) of the Truth
in Lending Act (15 U.S.C. 1602(aa)(1)) is amended—
(1) by inserting ‘‘a subordinate mortgage on’’
after ‘‘secured by’’; and
(2) by striking ‘‘a residential mortgage trans-
action’’.
(b) EFFECT ON PENDING CASES.—Any administra-
tive enforcement proceeding or other action which—
(1) is pending on the date of the enactment of
this Act; and
180
(2) is based on regulations in effect as of such
date under the Truth in Lending Act with respect
to high-cost residential mortgage transactions which
are not subordinate mortgages,
shall be dismissed as of such date.
SEC. 438. STREAMLINING FDIC APPROVAL OF NEW STATE
BANK POWERS.
(a) IN GENERAL.—Section 24(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1831a(a)) is amended to
read as follows:
‘‘(a) ACTIVITIES GENERALLY.—
‘‘(1) IN GENERAL.—An insured State bank may
not engage as principal in any type of activity that
is not permissible for a national bank unless—
‘‘(A) the bank has given the Corporation
written notice of the bank’s intention to engage
in such activity at least 60 days before com-
mencing to engage in the activity and within
such 60-day period (or within the extended pe-
riod provided under paragraph (2)) the Cor-
poration has not disapproved the activity; and
‘‘(B) the State bank is, and continues to
be, in compliance with applicable capital stand-
ards prescribed by the appropriate Federal
banking agency.
181
‘‘(2) EXTENSION OF PERIOD.—The Corporation
may extend the 60-day period referred to in para-
graph (1) for issuing a notice of disapproval with re-
spect to any activity for an additional 30 days.
‘‘(3) CONTENTS OF NOTICE.—Any notice sub-
mitted by a State bank under paragraph (1)(A) shall
contain such information as the Corporation may re-
quire.
‘‘(4) BASIS FOR DISAPPROVAL.—The Corpora-
tion may disapprove an activity for a State bank
under this subsection unless the Corporation deter-
mines that the activity would pose no significant risk
to the appropriate insurance fund.’’.
(b) SUBSIDIARIES OF INSURED STATE BANKS.—Sec-
tion 24(d)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1831a(d)(1)) is amended to read as follows:
‘‘(1) ACTIVITIES GENERALLY.—
‘‘(A) IN GENERAL.—A subsidiary of an in-
sured State bank may not engage as principal
in any type of activity that is not permissible
for a subsidiary of a national bank unless—
‘‘(i) the subsidiary has given the Cor-
poration written notice of the subsidiary’s
intention to engage in such activity at least
60 days before commencing to engage in
182
the activity and within such 60-day period
(or within the extended period provided
under paragraph (2)) the Corporation has
not disapproved the activity; and
‘‘(ii) the bank is, and continues to be,
in compliance with applicable capital
standards prescribed by the appropriate
Federal banking agency.
‘‘(B) EXTENSION OF PERIOD.—The Cor-
poration may extend the 60-day period referred
to in subparagraph (A) for issuing a notice of
disapproval with respect to any activity for an
additional 30 days.
‘‘(C) CONTENTS OF NOTICE.—Any notice
submitted by a subsidiary of an insured State
bank under subparagraph (A)(i) shall contain
such information as the Corporation may re-
quire.
‘‘(D) BASIS FOR DISAPPROVAL.—The Cor-
poration may disapprove an activity for a sub-
sidiary of an insured State bank under this
paragraph unless the Corporation determines
that the activity would pose no significant risk
to the appropriate insurance fund.’’.
183
SEC. 439. REPEAL OF CALL REPORT ATTESTATION RE-
QUIREMENT.
Section 5211(a) of the Revised Statutes (12 U.S.C.
161(a)) is amended by striking the 4th sentence.
SEC. 440. AUTHORIZING BANK SERVICE COMPANIES TO OR-
GANIZE AS LIMITED LIABILITY PARTNER-
SHIPS.
(a) AMENDMENT TO SHORT TITLE.—Section 1 of the
Bank Service Corporation Act (12 U.S.C. 1861(a)) is
amended by striking subsection (a) and inserting the fol-
lowing new subsection:
‘‘(a) SHORT TITLE.—This Act may be cited as the
‘Bank Service Company Act’.’’;
(b) AMENDMENTS TO DEFINITIONS.—Section 1(b) of
the Bank Service Corporation Act (12 U.S.C. 1861(b)) is
amended—
(1) by striking paragraph (2) and inserting the
following new paragraph:
‘‘(2) the term ‘bank service company’ means—
‘‘(A) any corporation—
‘‘(i) which is organized to perform
services authorized by this Act; and
‘‘(ii) all of the capital stock of which
is owned by 1 or more insured banks; and
‘‘(B) any limited liability company—
184
‘‘(i) which is organized to perform
services authorized by this Act; and
‘‘(ii) all of the members of which are
1 or more insured banks.’’;
(2) in paragraph (6)—
(A) by striking ‘‘corporation’’ and inserting
‘‘company’’; and
(B) by striking ‘‘and’’ after the semicolon;
(3) by redesignating paragraph (7) as para-
graph (8) and inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) the term ‘limited liability company’ means
any company organized under the law of a State (as
defined in section 3 of the Federal Deposit Insur-
ance Act) which provides that a member or manager
of such company is not personally liable for a debt,
obligation, or liability of the company solely by rea-
son of being, or acting as, a member or manager of
such company; and’’; and
(4) in paragraph (8) (as so redesignated)—
(A) by striking ‘‘corporation’’ each place
such term appears and inserting ‘‘company’’;
and
(B) by striking ‘‘capital stock’’ and insert-
ing ‘‘equity’’.
185
(c) AMENDMENTS TO SECTION 2.—Section 2 of the
Bank Service Corporation Act (12 U.S.C. 1862) is amend-
ed—
(1) by striking ‘‘corporation’’ and inserting
‘‘company’’;
(2) by striking ‘‘corporations’’ and inserting
‘‘companies’’; and
(3) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(d) AMENDMENTS TO SECTION 3.—Section 3 of the
Bank Service Corporation Act (12 U.S.C. 1863) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(e) AMENDMENTS TO SECTION 4.—Section 4 of the
Bank Service Corporation Act (12 U.S.C. 1864) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (b), by inserting ‘‘or mem-
bers’’ after ‘‘shareholders’’ each place such term ap-
pears;
186
(3) in subsections (c) and (d), by inserting ‘‘or
member’’ after ‘‘shareholder’’ each place such term
appears;
(4) in subsection (e)—
(A) by inserting ‘‘or members’’ after ‘‘na-
tional bank and State bank shareholders’’;
(B) by striking ‘‘its national bank share-
holder or shareholders’’ and inserting ‘‘any
shareholder or member of the company which is
a national bank’’;
(C) by striking ‘‘its State bank shareholder
or shareholders’’ and inserting ‘‘any share-
holder or member of the company which is a
State bank’’;
(D) by striking ‘‘such State bank or
banks’’ and inserting ‘‘any such State bank’’;
and
(E) by inserting ‘‘or members’’ after
‘‘State bank and national bank shareholders’’;
(5) in subsection (f), by inserting ‘‘or providing
insurance as principal, agent, or broker (except to
the extent permitted under subparagraph (A) or (E)
of section 4(c)(8) of the Bank Holding Company Act
of 1956)’’ after ‘‘or deposit taking’’; and
187
(6) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(f) AMENDMENTS TO SECTION 5.—Section 5 of the
Bank Service Corporation Act (12 U.S.C. 1865) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’; and
(2) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
(g) AMENDMENTS TO SECTION 6.—Section 6 of the
Bank Service Corporation Act (12 U.S.C. 1866) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) by inserting ‘‘or is not a member of’’ after
‘‘does not own stock in’’;
(3) by striking ‘‘the nonstockholding institu-
tion’’ and inserting ‘‘such depository institution’’;
(4) by inserting ‘‘or is a member of’’ after ‘‘that
owns stock in’’;
(5) in paragraphs (1) and (2), by inserting ‘‘or
nonmember’’ after ‘‘nonstockholding’’; and
(6) in the heading for such section by inserting
‘‘OR NONMEMBERS’’ after ‘‘NONSTOCKHOLDERS’’.
188
(h) AMENDMENTS TO SECTION 7.—Section 7 of the
Bank Service Corporation Act (12 U.S.C. 1867) is amend-
ed—
(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (a)—
(A) by inserting ‘‘or principal member’’
after ‘‘principal shareholder’’; and
(B) by inserting ‘‘or member’’ after ‘‘other
shareholder’’; and
(3) in the heading for such section, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’.
SEC. 441. BANK INVESTMENTS IN EDGE ACT AND AGREE-
MENT CORPORATIONS.
The 10th undesignated paragraph of section 25A of
the Federal Reserve Act (12 U.S.C. 618) is amended by
striking the last sentence and inserting the following:
‘‘Any national bank may invest in the stock of any cor-
poration organized under this section. The aggregate
amount of stock held by any national bank in all corpora-
tions engaged in business of the kind described in this sec-
tion or section 25 shall not exceed an amount equal to
10 percent of the capital and surplus of such bank unless
the Board determines that the investment of an additional
amount by the bank would not be unsafe or unsound and,
189
in any case, shall not exceed an amount equal to 25 per-
cent of the capital and surplus of such bank.’’.
SEC. 442. REPORT ON THE RECONCILIATION OF DIF-
FERENCES 
BETWEEN 
REGULATORY 
AC-
COUNTING PRINCIPLES AND GENERALLY AC-
CEPTED ACCOUNTING PRINCIPLES.
Before the end of the 180-day period beginning on
the date of the enactment of this Act, each appropriate
Federal banking agency (as defined in section 3 of the
Federal Deposit Insurance Act) shall submit to the Com-
mittee on Banking and Financial Services of the House
of Representatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate a report on the ac-
tions taken and to be taken by the agency to eliminate
or conform inconsistent or duplicative accounting and re-
porting requirements applicable to reports or statements
filed with any such agency by insured depository institu-
tions, as required by section 121 of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
SEC. 443. WAIVERS AUTHORIZED FOR RESIDENCY RE-
QUIREMENTS FOR NATIONAL BANK DIREC-
TORS.
The 1st sentence of section 5146 of the Revised Stat-
utes of the United states (12 U.S.C. 72) is amended by
inserting ‘‘(1) the Comptroller of the Currency may, in
190
the Comptroller’s discretion, waive the residency require-
ments in the case of any director or a national bank to
whom the requirement would otherwise apply, and (2)’’
after ‘‘except that’’.
TITLE V—LENDER LIABILITY
SEC. 501. LENDER LIABILITY.
(a) PARTICIPATION IN MANAGEMENT.—
(1) IN GENERAL.—It is the sense of Congress
that a person who holds indicia of ownership pri-
marily to protect the person’s security interest in a
vessel or facility should not be considered to have
participated in management, as that term is used in
section 101(20) of the Comprehensive Environ-
mental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9601(20)), unless the person—
(A) exercises decisionmaking control over
the borrower’s environmental compliance such
that the person has undertaken responsibility
for the hazardous substance handling or dis-
posal practices of the vessel or facility; or
(B) exercises control at a level comparable
to that of a manager of the borrower’s vessel or
facility such that the person has assumed or
manifested responsibility for the overall man-
agement of the vessel or facility encompassing
191
day-to-day decisionmaking over either environ-
mental compliance or over the operational, as
opposed to financial and administrative, aspects
of the vessel or facility.
(2) 
OPERATIONAL
ASPECTS
DEFINED.—In
paragraph (1)(B), the term ‘‘operational aspects’’
includes functions such as those of a facility or plant
manager, operations manager, chief operating offi-
cer, or chief executive officer.
(b) EXCLUSIONS.—If is further the sense of Congress
that the term ‘‘participation in management’’ as used in
such section 101(20) should not include any of the follow-
ing:
(1) The mere capacity to influence, or ability to
influence, or the unexercised right to control vessel
or facility operations.
(2) Any act of a security interest holder to re-
quire another person to comply with applicable laws
or to respond lawfully to disposal of any hazardous
substance.
(3) Conducting an act or failing to act prior to
the time that a security interest is created in a ves-
sel or facility.
192
(4) Holding a security interest in a vessel or fa-
cility or abandoning or releasing such a security in-
terest.
(5) Including in the terms of an extension of
credit, or in a contract or security agreement relat-
ing to such an extension, covenants, warranties, or
other terms and conditions that relate to environ-
mental compliance.
(6) Monitoring or enforcing the terms and con-
ditions of the extension of credit or security interest.
(7) Monitoring or undertaking 1 or more in-
spections of the vessel or facility.
(8) Under section 107(d) of the Comprehensive
Environmental Response, Compensation, and Liabil-
ity Act of 1980, or under the direction of an on-
scene coordinator, conducting a response action or
other lawful means of addressing the release or
threatened release of a hazardous substance in con-
nection with the vessel or facility prior to, during, or
upon the expiration of the term of the extension of
credit.
(9) Providing financial or other advice or coun-
seling in an effort to mitigate, prevent, or cure de-
fault or diminution in the value of the vessel or facil-
ity.
193
(10) Restructuring, renegotiating, or otherwise
agreeing to alter the terms and conditions of the ex-
tension of credit or security interest or exercising
forbearance.
(11) Exercising other remedies that may be
available under applicable law for the breach of any
term or condition of the extension of credit or secu-
rity agreement.
(12) Holding legal or equitable title acquired by
a security interest holder through foreclosure or its
equivalent primarily to protect a security interest
provided that the holder undertakes to sell, re-lease,
or otherwise divest the property in a reasonably ex-
peditious manner on commercially reasonable terms,
taking into account market conditions and legal and
regulatory requirements.
(c) SECURITY INTEREST.—It is further the sense of
Congress that the term ‘‘security interest’’ as used in such
section 101(20) should include rights under a mortgage,
deed of trust, assignment, judgment, lien, pledge, security
agreement, factoring agreement, lease, or any other right
accruing to person to secure the repayment of money, the
performance of a duty, or some other obligation.
(d) MISCELLANEOUS.—It is further the sense of the
Congress that the potential Superfund liability of fidu-
194
ciaries and the potential Resource Conservation and Re-
covery Act liability of lenders and fiduciaries should be
addressed by the Congress.
TITLE VI—ANNUAL STUDY AND
REPORT 
ON 
IMPACT 
ON
LENDING 
TO 
SMALL 
BUSI-
NESS
SEC. 601. ANNUAL STUDY AND REPORT.
Not later than 12 months after the date of the en-
actment of this Act, and annually thereafter, the Board
of Governors of the Federal Reserve System, the Director
of the Office of Thrift Supervision, the Comptroller of the
Currency, and the Board of Directors of the Federal De-
posit Insurance Corporation shall jointly conduct a study
and submit to the Congress a report on the extent to
which this Act and the amendments made by this Act
have, through reductions in regulatory burdens, resulted
in increased lending to small businesses.
Æ