H. R. 3116—2
(c) SEMINARS AND MODEL APPROACHES TO YEAR 2000 COMPUTER
PROBLEM.—
(1) SEMINARS.—
(A) IN GENERAL.—Each Federal banking agency and
the National Credit Union Administration Board shall offer
seminars to all depository institutions and insured credit
unions under the jurisdiction of such agency on the implica-
tion of the Year 2000 computer problem for—
(i) the safe and sound operations of such depository
institutions and credit unions; and
(ii) transactions with other financial institutions,
including Federal reserve banks and Federal home
loan banks.
(B) CONTENT AND SCHEDULE.—The content and sched-
ule of seminars offered pursuant to subparagraph (A) shall
be determined by each Federal banking agency and the
National Credit Union Administration Board taking into
account the resources and examination priorities of such
agency.
(2) MODEL APPROACHES.—
(A) IN GENERAL.—Each Federal banking agency and
the National Credit Union Administration Board shall
make available to each depository institution and insured
credit union under the jurisdiction of such agency model
approaches to common Year 2000 computer problems, such
as model approaches with regard to project management,
vendor contracts, testing regimes, and business continuity
planning.
(B) VARIETY
OF
APPROACHES.—In developing model
approaches to the Year 2000 computer problem pursuant
to subparagraph (A), each Federal banking agency and
the National Credit Union Administration Board shall take
into account the need to develop a variety of approaches
to correspond to the variety of depository institutions or
credit unions within the jurisdiction of the agency.
(3) COOPERATION.—In carrying out this section, the Federal
banking agencies and the National Credit Union Administra-
tion Board may cooperate and coordinate their activities with
each other, the Financial Institutions Examination Council,
and appropriate organizations representing depository institu-
tions and credit unions.
SEC. 3. REGULATION AND EXAMINATION OF SERVICE PROVIDERS.
(a) REGULATION AND EXAMINATION OF SAVINGS ASSOCIATION
SERVICE COMPANIES.—
(1) AMENDMENT TO HOME OWNERS’ LOAN ACT.—Section 5(d)
of the Home Owners’ Loan Act (12 U.S.C. 1464(d)) is amended
by adding at the end the following:
‘‘(7) 
REGULATION
AND
EXAMINATION
OF
SAVINGS
ASSOCIATION SERVICE COMPANIES, SUBSIDIARIES, AND SERVICE
PROVIDERS.—
‘‘(A) 
GENERAL
EXAMINATION
AND
REGULATORY
AUTHORITY.—A service company or subsidiary that is owned
in whole or in part by a savings association shall be subject
to examination and regulation by the Director to the same
extent as that savings association.
H. R. 3116—3
‘‘(B) EXAMINATION BY OTHER BANKING AGENCIES.—The
Director may authorize any other Federal banking agency
that supervises any other owner of part of the service
company or subsidiary to perform an examination described
in subparagraph (A).
‘‘(C) APPLICABILITY
OF
SECTION
OF
THE
FEDERAL
DEPOSIT INSURANCE ACT.—A service company or subsidiary
that is owned in whole or in part by a saving association
shall be subject to the provisions of section 8 of the Federal
Deposit Insurance Act as if the service company or subsidi-
ary were an insured depository institution. In any such
case, the Director shall be deemed to be the appropriate
Federal banking agency, pursuant to section 3(q) of the
Federal Deposit Insurance Act.
‘‘(D) SERVICE
PERFORMED
BY
CONTRACT
OR
OTHER-
WISE.—Notwithstanding subparagraph (A), if a savings
association, a subsidiary thereof, or any savings and loan
affiliate or entity, as identified by section 8(b)(9) of the
Federal Deposit Insurance Act, that is regularly examined
or subject to examination by the Director, causes to be
performed for itself, by contract or otherwise, any service
authorized under this Act or, in the case of a State savings
association, any applicable State law, whether on or off
its premises—
‘‘(i) such performance shall be subject to regulation
and examination by the Director to the same extent
as if such services were being performed by the savings
association on its own premises; and
‘‘(ii) the savings association shall notify the
Director of the existence of the service relationship
not later than 30 days after the earlier of—
‘‘(I) the date on which the contract is entered
into; or
‘‘(II) the date on which the performance of
the service is initiated.
‘‘(E) ADMINISTRATION BY THE DIRECTOR.—The Director
may issue such regulations and orders, including those
issued pursuant to section 8 of the Federal Deposit Insur-
ance Act, as may be necessary to enable the Director to
administer and carry out this paragraph and to prevent
evasion of this paragraph.
‘‘(8) DEFINITIONS.—For purposes of this section—
‘‘(A) the term ‘service company’ means—
‘‘(i) any corporation—
‘‘(I) that is organized to perform services
authorized by this Act or, in the case of a corpora-
tion owned in part by a State savings association,
authorized by applicable State law; and
‘‘(II) all of the capital stock of which is owned
by 1 or more insured savings associations; and
‘‘(ii) any limited liability company—
‘‘(I) that is organized to perform services
authorized by this Act or, in the case of a company,
1 of the members of which is a State savings
association, authorized by applicable State law;
and
H. R. 3116—4
‘‘(II) all of the members of which are 1 or
more insured savings associations;
‘‘(B) 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) that provides that
a member or manager of such company is not personally
liable for a debt, obligation, or liability of the company
solely by reason of being, or acting as, a member or man-
ager of such company; and
‘‘(C) the terms ‘State savings association’ and ‘subsidi-
ary’ have the same meanings as in section 3 of the Federal
Deposit Insurance Act.’’.
(2) CONFORMING
AMENDMENTS
TO
SECTION
OF
THE
FEDERAL DEPOSIT INSURANCE ACT.—Section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818) is amended—
(A) in subsection (b)(9), by striking ‘‘to any service
corporation of a savings association and to any subsidiary
of such service corporation’’;
(B) in subsection (e)(7)(A)(ii), by striking ‘‘(b)(8)’’ and
inserting ‘‘(b)(9)’’; and
(C) in subsection (j)(2), by striking ‘‘(b)(8)’’ and inserting
‘‘(b)(9)’’.
(b) REGULATION AND EXAMINATION OF SERVICE PROVIDERS FOR
CREDIT UNIONS.—Title II of the Federal Credit Union Act (12
U.S.C. 1781 et seq.) is amended by inserting after section 206
the following new section:
‘‘SEC. 206A. REGULATION AND EXAMINATION OF CREDIT UNION
ORGANIZATIONS AND SERVICE PROVIDERS.
‘‘(a) 
REGULATION
AND
EXAMINATION
OF
CREDIT
UNION
ORGANIZATIONS.—
‘‘(1) GENERAL EXAMINATION AND REGULATORY AUTHORITY.—
A credit union organization shall be subject to examination
and regulation by the Board to the same extent as that insured
credit union.
‘‘(2) EXAMINATION
BY
OTHER
BANKING
AGENCIES.—The
Board may authorize to make an examination of a credit union
organization in accordance with paragraph (1)—
‘‘(A) any Federal regulator agency that supervises any
activity of a credit union organization; or
‘‘(B) any Federal banking agency that supervises any
other person who maintains an ownership interest in a
credit union organization.
‘‘(b) APPLICABILITY OF SECTION 206.—A credit union organiza-
tion shall be subject to the provisions of section 206 as if the
credit union organization were an insured credit union.
‘‘(c) SERVICE
PERFORMED
BY
CONTRACT
OR
OTHERWISE.—
Notwithstanding subsection (a), if an insured credit union or a
credit union organization that is regularly examined or subject
to examination by the Board, causes to be performed for itself,
by contract or otherwise, any service authorized under this Act,
or in the case of a State credit union, any applicable State law,
whether on or off its premises—
‘‘(1) such performance shall be subject to regulation and
examination by the Board to the same extent as if such services
H. R. 3116—5
were being performed by the insured credit union or credit
union organization itself on its own premises; and
‘‘(2) the insured credit union or credit union organization
shall notify the Board of the existence of the service relationship
not later than 30 days after the earlier of—
‘‘(A) the date on which the contract is entered
into; or
‘‘(B) the date on which the performance of the service
is initiated.
‘‘(d) ADMINISTRATION BY THE BOARD.—The Board may issue
such regulations and orders as may be necessary to enable the
Board to administer and carry out this section and to prevent
evasion of this section.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘credit union organization’ means any entity
that—
‘‘(A) is not a credit union;
‘‘(B) is an entity in which an insured credit union
may lawfully hold an ownership interest or investment;
and
‘‘(C) is owned in whole or in part by an insured credit
union; and
‘‘(2) the term ‘Federal banking agency’ has the same
meaning as in section 3 of the Federal Deposit Insurance Act.
‘‘(f) EXPIRATION OF AUTHORITY.—This section and all powers
and authority of the Board under this section shall cease to be
effective as of December 31, 2001.’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.