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ler of the Currency, and the Administration, shall
conduct a study and evaluation of—
(A) the oversight and supervisory practices
of the Administration concerning the Fund, in-
cluding the treatment of amounts deposited in
the Fund pursuant to section 202(c) of the
Federal Credit Union Act, including analysis
of—
(i) whether those amounts should
be—
(I) refundable; or
(II) treated as expenses; and
(ii) the use of those amounts in deter-
mining equity capital ratios;
(B) the potential for, and potential effects
of, administration of the Fund by an entity
other than the Administration;
(C) the 10 largest corporate credit unions
in the United States, conducted in cooperation
with appropriate employees of other Federal
agencies with expertise in the examination of
federally insured financial institutions, includ-
ing—
(i) the investment practices of those
credit unions; and
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(ii) the financial stability, financial
operations, and financial controls of those
credit unions;
(D) the regulations of the Administration;
and
(E) the supervision of corporate credit
unions by the Administration.
(c) REPORT.—Not later than 12 months after the
date of enactment of this Act, the Secretary shall submit
to the appropriate committees of the Congress, a report
that includes the results of the study and evaluation con-
ducted under subsection (b), together with any rec-
ommendations that the Secretary considers to be appro-
priate.
SEC. 2607. REPORT ON THE RECONCILIATION OF DIF-
FERENCES 
BETWEEN 
REGULATORY 
AC-
COUNTING PRINCIPLES AND GENERALLY AC-
CEPTED ACCOUNTING PRINCIPLES.
Not later than 180 days after the date of enactment
of this Act, each appropriate Federal banking agency shall
submit to the Committee on Banking and Financial Serv-
ices of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate,
a report describing both the actions that have been taken
by the agency and the actions that will be taken by the
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agency to eliminate or conform inconsistent or duplicative
accounting and reporting requirements applicable to re-
ports or statements filed with any such agency by insured
depository institutions, as required by section 121 of the
Federal Deposit Insurance Corporation Improvement Act
of 1991.
SEC. 2608. STATE-BY-STATE AND METROPOLITAN AREA-BY-
METROPOLITAN AREA STUDY OF BANK FEES.
Section 1002(b)(2)(A) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1811 note) is amended to read as follows:
‘‘(A) a description of any discernible trend,
in the Nation as a whole, in each of the 50
States, and in each consolidated metropolitan
statistical area or primary metropolitan statis-
tical area (as defined by the Director of the Of-
fice of Management and Budget), in the cost
and availability of retail banking services (in-
cluding fees imposed for providing such serv-
ices), that delineates differences between in-
sured depository institutions on the basis of
both the size of the institution and any engage-
ment of the institution in multistate activity;
and’’.
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SEC. 2609. PROSPECTIVE APPLICATION OF GOLD CLAUSES
IN CONTRACTS.
Section 5118(d)(2) of title 31, United States Code,
is amended by adding at the end the following: ‘‘This
paragraph shall apply to any obligation issued on or before
October 27, 1977, notwithstanding any assignment or no-
vation of such obligation after October 27, 1977, unless
all parties to the assignment or novation specifically agree
to include a gold clause in the new agreement. Nothing
in the preceding sentence shall be construed to affect the
enforceability of a Gold Clause contained in any obligation
issued after October 27, 1977 if the enforceability of that
Gold Clause has been finally adjudicated before the date
of enactment of the Economic Growth and Regulatory Pa-
perwork Reduction Act of 1996.’’.
SEC. 2610. QUALIFIED FAMILY PARTNERSHIPS.
Section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841) is amended—
(1) in subsection (b), by inserting ‘‘, and shall
not include a qualified family partnership’’ after ‘‘by
any State’’; and
(2) in subsection (o), by adding at the end the
following:
‘‘(10) QUALIFIED FAMILY PARTNERSHIP.—The
term ‘qualified family partnership’ means a general
or limited partnership that the Board determines—
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‘‘(A) does not directly control any bank,
except through a registered bank holding com-
pany;
‘‘(B) does not control more than 1 reg-
istered bank holding company;
‘‘(C) does not engage in any business ac-
tivity, except indirectly through ownership of
other business entities;
‘‘(D) has no investments other than those
permitted for a bank holding company pursuant
to section 4(c);
‘‘(E) is not obligated on any debt, either
directly or as a guarantor;
‘‘(F) has partners, all of whom are ei-
ther—
‘‘(i) individuals related to each other
by blood, marriage (including former mar-
riage), or adoption; or
‘‘(ii) trusts for the primary benefit of
individuals related as described in clause
(i); and
‘‘(G) has filed with the Board a statement
that includes—
‘‘(i) the basis for the eligibility of the
partnership under subparagraph (F);
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‘‘(ii) a list of the existing activities
and investments of the partnership;
‘‘(iii) a commitment to comply with
this paragraph;
‘‘(iv) a commitment to comply with
section 7 of the Federal Deposit Insurance
Act with respect to any acquisition of con-
trol of an insured depository institution oc-
curring after date of enactment of this
paragraph; and
‘‘(v) a commitment to be subject, to
the same extent as if the qualified family
partnership were a bank holding com-
pany—
‘‘(I) to examination by the Board
to assure compliance with this para-
graph; and
‘‘(II) to section 8 of the Federal
Deposit Insurance Act.’’.
SEC. 2611. COOPERATIVE EFFORTS BETWEEN DEPOSITORY
INSTITUTIONS AND FARMERS AND RANCH-
ERS IN DROUGHT-STRICKEN AREAS.
(a) FINDINGS.—The Congress hereby finds the fol-
lowing:
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(1) Severe drought is being experienced in the
Plains and the Southwest portions of our country.
(2) Soil erosion is becoming a critical issue as
the dry season approaches and summer winds may
rob these fields of nutrient-rich topsoil.
(3) Without immediate assistance, ranchers and
farmers would be forced to cull their herds bringing
tremendous volatility in the beef market.
(4) The American people will feel the impact of
this drought in their pocketbooks through higher
prices for grain products.
(5) The communities in drought-stricken areas
are suffering and borrowers may have difficulty
meeting their obligations to financial institutions.
(6) Congress has already passed the Depository
Institutions Disaster Relief Act of 1992 which allows
financial institutions to make emergency exceptions
to the appraisal requirement in times of national dis-
asters.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that financial institutions and Federal bank
regulators should work cooperatively with farmers and
ranchers in communities affected by drought conditions to
allow financial obligations to be met without imposing
undue burdens.
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SEC. 2612. 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’’ and inserting the following:
‘‘(and opportunity for hearing in the case of an acquisition
of a savings association)’’.
SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO
ORGANIZE AS LIMITED LIABILITY COMPA-
NIES.
(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
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‘‘(ii) all of the capital stock of which
is owned by 1 or more insured banks; and
‘‘(B) any limited liability company—
‘‘(i) which is organized to perform
services authorized by this Act; and
‘‘(ii) all of the members of which are
1 or more insured banks.’’;
(2) in paragraph (6)—
(A) by striking ‘‘corporation’’ and inserting
‘‘company’’; and
(B) by striking ‘‘and’’ after the semicolon;
(3) by redesignating paragraph (7) as para-
graph (8) and inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) the term ‘limited liability company’ means
any company, partnership, trust, or similar business
entity organized under the law of a State (as defined
in section 3 of the Federal Deposit Insurance Act)
which provides that a member or manager of such
company is not personally liable for a debt, obliga-
tion, or liability of the company solely by reason of
being, or acting as, a member or manager of such
company; and’’; and
(4) in paragraph (8) (as so redesignated)—
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(A) by striking ‘‘corporation’’ each place
such term appears and inserting ‘‘company’’;
and
(B) by striking ‘‘capital stock’’ and insert-
ing ‘‘equity’’.
(c) AMENDMENTS TO SECTION 2.—Section 2 of the
Bank Service Corporation Act (12 U.S.C. 1862) is amend-
ed—
(1) by striking ‘‘corporation’’ and inserting
‘‘company’’;
(2) by striking ‘‘corporations’’ and inserting
‘‘companies’’; and
(3) in the heading for such section, by striking
‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.
(d) AMENDMENTS TO SECTION 3.—Section 3 of the
Bank Service Corporation Act (12 U.S.C. 1863) is amend-
ed—
(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—
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(1) by striking ‘‘corporation’’ each place such
term appears and inserting ‘‘company’’;
(2) in subsection (b), by inserting ‘‘or mem-
bers’’ after ‘‘shareholders’’ each place such term ap-
pears;
(3) in subsections (c) and (d), by inserting ‘‘or
member’’ after ‘‘shareholder’’ each place such term
appears;
(4) in subsection (e)—
(A) by inserting ‘‘or members’’ after ‘‘na-
tional bank and State bank shareholders’’;
(B) by striking ‘‘its national bank share-
holder or shareholders’’ and inserting ‘‘any
shareholder or member of the company which is
a national bank’’;
(C) by striking ‘‘its State bank shareholder
or shareholders’’ and inserting ‘‘any share-
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’’;
and
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(5) 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’’.
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(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. 2614. RETIREMENT CERTIFICATES OF DEPOSITS.
(a) IN GENERAL.—Section 3(l)(5) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(l)(5) is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at
the end;
(2) in subparagraph (B), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) any liability of an insured depository
institution that arises under an annuity con-
tract, the income of which is tax deferred under
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section 72 of the Internal Revenue Code of
1986.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to any liability of an insured
depository that arises under an annuity contract issued
on or after the date of enactment of this Act.
SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTI-
TUTION ASSOCIATIONS WITH GOVERNMENT-
SPONSORED ENTERPRISES.
(a) CREDIT UNIONS.—Section 201 of the Federal
Credit Union Act (12 U.S.C. 1781) is amended by adding
at the end the following new subsection:
‘‘(e) PROHIBITION ON CERTAIN ASSOCIATIONS.—
‘‘(1) IN
GENERAL.—No insured credit union
may be sponsored by or accept financial support, di-
rectly or indirectly, from any Government-sponsored
enterprise, if the credit union includes the customers
of the Government-sponsored enterprise in the field
of membership of the credit union.
‘‘(2) ROUTINE
BUSINESS
FINANCING.—Para-
graph (1) shall not apply with respect to advances
or other forms of financial assistance generally pro-
vided by a Government-sponsored enterprise in the
ordinary course of business of the enterprise.
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‘‘(3) GOVERNMENT-SPONSORED
ENTERPRISE
DEFINED.—For purposes of this subsection, the
term ‘Government-sponsored enterprise’ has the
meaning given to such term in section 1404(e)(1)(A)
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
‘‘(4) EMPLOYEE CREDIT UNION.—No provision
of this subsection shall be construed as prohibiting
any employee of a Government-sponsored enterprise
from becoming a member of a credit union whose
field of membership is the employees of such enter-
prise.’’.
(b) BANKS AND SAVINGS ASSOCIATIONS.—Section 18
of the Federal Deposit Insurance Act (12 U.S.C. 1828)
is amended by adding at the end the following new sub-
section:
‘‘(s) PROHIBITION ON CERTAIN AFFILIATIONS.—
‘‘(1) IN
GENERAL.—No depository institution
may be an affiliate of, be sponsored by, or accept fi-
nancial support, directly or indirectly, from any Gov-
ernment-sponsored enterprise.
‘‘(2) EXCEPTION FOR MEMBERS OF A FEDERAL
HOME LOAN BANK.—Paragraph (1) shall not apply
with respect to the membership of a depository insti-
tution in a Federal home loan bank.
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‘‘(3) ROUTINE
BUSINESS
FINANCING.—Para-
graph (1) shall not apply with respect to advances
or other forms of financial assistance provided by a
Government-sponsored enterprise pursuant to the
statutes governing such enterprise.
‘‘(4) GOVERNMENT-SPONSORED
ENTERPRISE
DEFINED.—For purposes of this subsection, the
term ‘Government-sponsored enterprise’ has the
meaning given to such term in section 1404(e)(1)(A)
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply on and after January 1, 1996.
Subtitle G—Deposit Insurance
Funds
SEC. 2701. SHORT TITLE.
This subtitle may be cited as the ‘‘Deposit Insurance
Funds Act of 1996’’.
SEC. 2702. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.
(a) IN GENERAL.—Except as provided in subsection
(f), the Board of Directors of the Federal Deposit Insur-
ance Corporation shall impose a special assessment on the
SAIF-assessable deposits of each insured depository insti-
tution in accordance with assessment regulations of the
Corporation at a rate applicable to all such institutions
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CHAPTER 4
LEGISLATIVE BRANCH
HOUSE OF REPRESENTATIVES
SALARIES AND EXPENSES
(RESCISSION)
Immediately upon enactment of this Act, of the
funds appropriated in the Legislative Branch Appropria-
tions Act, 1996, for the House of Representatives under
the heading ‘‘SALARIES AND EXPENSES’’, there is
rescinded $500,000, specified for the following heading
and account:
(1) ‘‘ALLOWANCES AND EXPENSES’’,
$500,000, as follows: (A) ‘‘Government contributions
to employees’ life insurance fund, retirement funds,
Social Security fund, Medicare fund, health benefits
fund, and worker’s and unemployment compensa-
tion.’’
JOINT ITEMS
CAPITOL POLICE BOARD
CAPITOL POLICE
SALARIES
(RESCISSION)
Immediately upon enactment of this Act, of the
funds appropriated under this heading in Public Law
104–53, $3,000,000 are rescinded.