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1042(c)(2) of the Internal Revenue Code of 
1986.’’. 
SEC. 411. MINORITY FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—The Federal Deposit Insurance 
Corporation and the Office of Thrift Supervision shall pro-
vide such technical assistance to minority financial institu-
tions affected by Hurricane Katrina, Hurricane Rita, and 
Hurricane Wilma as may be appropriate to preserve the 
present number of minority depository institutions and 
preserve the minority character in cases involving mergers 
or acquisitions of a minority depository institution con-
sistent with section 308(a) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989. 
(b) MINORITY FINANCIAL INSTITUTION DEFINED.— 
For purposes of this subsection, the term ‘‘minority finan-
cial institution’’ has the same meaning as in section 
308(b) of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989. 
TITLE V—DEPOSITORY INSTITU-
TION 
AFFILIATES 
PROVI-
SIONS 
SEC. 501. CLARIFICATION OF CROSS MARKETING PROVI-
SION. 
Section 4(n)(5) of the Bank Holding Company Act 
of 1956 (12 U.S.C. 1843(n)(5)) is amended— 
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(1) in subparagraph (B), by striking ‘‘sub-
section (k)(4)(I)’’ and inserting ‘‘subparagraph (H) 
or (I) of subsection (k)(4)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) THRESHOLD OF CONTROL.—Subpara-
graph (A) shall not apply with respect to a 
company described or referred to in clause (i) 
or (ii) of such subparagraph if the financial 
holding company does not own or control 25 
percent or more of the total equity or any class 
of voting securities of such company.’’. 
SEC. 502. AMENDMENT TO PROVIDE THE FEDERAL RE-
SERVE 
BOARD 
WITH 
DISCRETION 
CON-
CERNING THE IMPUTATION OF CONTROL OF 
SHARES OF A COMPANY BY TRUSTEES. 
Section 2(g)(2) of the Bank Holding Company Act 
of 1956 (12 U.S.C. 1841(g)(2)) is amended by inserting 
‘‘, unless the Board determines that such treatment is not 
appropriate in light of the facts and circumstances of the 
case and the purposes of this Act’’ before the period at 
the end. 
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SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON THRIFT 
SERVICE COMPANIES. 
(a) IN GENERAL.—The 1st sentence of section 
5(c)(4)(B) of the Home Owners’ Loan Act (12 U.S.C. 
1464(c)(4)(B)) (as amended by section 406(b)(3) of this 
Act) is amended— 
(1) by striking ‘‘corporation organized’’ and all 
that follows through ‘‘is available for purchase’’ and 
inserting ‘‘company, if the entire capital of the com-
pany is available for purchase’’; and 
(2) by striking ‘‘having their home offices in 
such State’’. 
(b) TECHNICAL CORRECTIONS.— 
(1) The heading for subparagraph (B) of sec-
tion 5(c)(4) of the Home Owners’ Loan Act (12 
U.S.C. 1464(c)(4)(B)) is amended by striking ‘‘COR-
PORATIONS’’ and inserting ‘‘COMPANIES’’. 
(2) The 2nd sentence of section 5(n)(1) of the 
Home Owners’ Loan Act (12 U.S.C. 1464(n)(1)) is 
amended by striking ‘‘service corporations’’ and in-
serting ‘‘service companies’’. 
(3) Section 5(q)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(q)(1)) is amended by striking 
‘‘service corporation’’ each place such term appears 
in subparagraphs (A), (B), and (C) and inserting 
‘‘service company’’. 
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(4) Section 10(m)(4)(C)(iii)(II) of the Home 
Owners’ 
Loan 
Act 
(12 
U.S.C. 
1467a(m)(4)(C)(iii)(II)) is amended by striking 
‘‘service corporation’’ each place such term appears 
and inserting ‘‘service company’’. 
SEC. 504. CLARIFICATION OF SCOPE OF APPLICABLE RATE 
PROVISION. 
Section 44(f) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831u(f)) is amended by adding at the end 
the following new paragraphs: 
‘‘(3) OTHER
LENDERS.—In the case of any 
other lender doing business in the State described in 
paragraph (1), the maximum interest rate or 
amount of interest, discount points, finance charges, 
or other similar charges that may be charged, taken, 
received, or reserved from time to time in any loan, 
discount, or credit sale made, or upon any note, bill 
of exchange, financing transaction, or other evidence 
of debt issued to or acquired by any other lender 
shall be equal to not more than the greater of the 
rates described in subparagraph (A) or (B) of para-
graph (1). 
‘‘(4) OTHER LENDER DEFINED.—For purposes 
of paragraph (3), the term ‘other lender’ means any 
person engaged in the business of selling or financ-
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ing the sale of personal property (and any services 
incidental to the sale of personal property) in such 
State, except that, with regard to any person or en-
tity described in such paragraph, such term does not 
include— 
‘‘(A) an insured depository institution; or 
‘‘(B) any person or entity engaged in the 
business of providing a short-term cash advance 
to any consumer in exchange for— 
‘‘(i) a consumer’s personal check or 
share draft, in the amount of the advance 
plus a fee, where presentment or negotia-
tion of such check or share draft is de-
ferred by agreement of the parties until a 
designated future date; or 
‘‘(ii) a consumer authorization to 
debit the consumer’s transaction account, 
in the amount of the advance plus a fee, 
where such account will be debited on or 
after a designated future date.’’. 
SEC. 505. SAVINGS ASSOCIATIONS ACTING AS AGENTS FOR 
AFFILIATED DEPOSITORY INSTITUTIONS. 
(a) IN GENERAL.—Section 18(r) of the Federal De-
posit Insurance Act (12 U.S.C. 1828(r)) is amended— 
(1) in paragraph (1)— 
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(A) by striking ‘‘bank subsidiary’’ and in-
serting ‘‘depository institution subsidiary’’; and 
(B) by striking ‘‘bank holding company’’ 
and inserting ‘‘depository institution holding 
company’’; 
(2) in paragraph (2), by striking ‘‘a bank act-
ing’’ and inserting ‘‘a depository institution acting’’; 
(3) in paragraphs (3) and (5), by striking ‘‘or 
(6)’’ each place such term appears in each such 
paragraph; and 
(4) by striking paragraph (6). 
(b) CLERICAL AMENDMENT.—The heading for sec-
tion 18(r)(2) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(r)) is amended by striking ‘‘BANK’’ and in-
serting ‘‘DEPOSITORY INSTITUTION’’. 
SEC. 506. CREDIT CARD BANK INVESTMENTS FOR THE PUB-
LIC WELFARE. 
Section 2(c)(2)(F) of the Bank Holding Company Act 
of 1956 (12 U.S.C. 1841(c)(2)(F)) is amended— 
(1) in clause (i), by striking ‘‘engages only in 
credit card operations;’’ and inserting ‘‘engages only 
in— 
‘‘(I) credit card operations; and 
‘‘(II) making investments de-
signed primarily to promote the public 
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welfare, including the welfare of low- 
and moderate-income communities or 
families (such as by providing hous-
ing, services, or jobs), in the manner 
and to the extent permitted for na-
tional banks under the paragraph des-
ignated the ‘Eleventh’ of section 5136 
of the Revised Statutes of the United 
States 
and 
regulations 
prescribed 
under such paragraph, except that the 
last sentence of such paragraph shall 
be applied for purposes of this sub-
clause by substituting ‘5 percent’ for 
‘15 percent’ each place such term ap-
pears; ’’; and 
(2) in clause (v), by inserting ‘‘, other than 
making or purchasing loans for the purposes de-
scribed in and to the extent permitted in clause 
(i)(II))’’ before the period at the end. 
TITLE VI—BANKING AGENCY 
PROVISIONS 
SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER 
TO ALLOCATE EXAMINER RESOURCES. 
Section 10(d) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(d)) is amended— 
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(1) by redesignating paragraphs (5), (6), (7), 
(8), (9), and (10) as paragraphs (6), (7), (8), (9), 
(10), and (11), respectively; 
(2) by inserting after paragraph (4), the fol-
lowing new paragraph: 
‘‘(5) WAIVER OF SCHEDULE WHEN NECESSARY 
TO ACHIEVE SAFE AND SOUND ALLOCATION OF EX-
AMINER
RESOURCES.—Notwithstanding paragraphs 
(1), (2), (3), and (4), an appropriate Federal bank-
ing agency may make adjustments in the examina-
tion cycle for an insured depository institution if 
necessary to allocate available resources of exam-
iners in a manner that provides for the safety and 
soundness of, and the effective examination and su-
pervision of, insured depository institutions.’’; and 
(3) in paragraphs (8) and (9), as so redesig-
nated, by striking ‘‘paragraph (6)’’ and inserting 
‘‘paragraph (7)’’. 
SEC. 602. INTERAGENCY DATA SHARING. 
(a) FEDERAL BANKING AGENCIES.—Section 7(a)(2) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)(2)) is amended by adding at the end the following 
new subparagraph: 
‘‘(C) DATA SHARING WITH OTHER AGEN-
CIES AND PERSONS.—In addition to reports of 
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examination, reports of condition, and other re-
ports required to be regularly provided to the 
Corporation (with respect to all insured deposi-
tory institutions, including a depository institu-
tion for which the Corporation has been ap-
pointed conservator or receiver) or an appro-
priate State bank supervisor (with respect to a 
State depository institution) under subpara-
graph (A) or (B), a Federal banking agency 
may, in the agency’s discretion, furnish any re-
port of examination or other confidential super-
visory information concerning any depository 
institution or other entity examined by such 
agency under authority of any Federal law, 
to— 
‘‘(i) any other Federal or State agen-
cy or authority with supervisory or regu-
latory authority over the depository institu-
tion or other entity; 
‘‘(ii) any officer, director, or receiver 
of such depository institution or entity; 
and 
‘‘(iii) any other person the Federal 
banking agency determines to be appro-
priate.’’. 
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(b) NATIONAL CREDIT UNION ADMINISTRATION.— 
Section 202(a) of the Federal Credit Union Act (12 
U.S.C. 1782(a)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(8) DATA
SHARING
WITH
OTHER
AGENCIES 
AND PERSONS.—In addition to reports of examina-
tion, reports of condition, and other reports required 
to be regularly provided to the Board (with respect 
to all insured credit unions, including a credit union 
for which the Corporation has been appointed con-
servator or liquidating agent) or an appropriate 
State commission, board, or authority having super-
vision of a State-chartered credit union, the Board 
may, in the Board’s discretion, furnish any report of 
examination or other confidential supervisory infor-
mation concerning any credit union or other entity 
examined by the Board under authority of any Fed-
eral law, to— 
‘‘(A) any other Federal or State agency or 
authority with supervisory or regulatory author-
ity over the credit union or other entity; 
‘‘(B) any officer, director, or receiver of 
such credit union or entity; and 
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‘‘(C) any other institution-affiliated party 
of such credit union or entity the Board deter-
mines to be appropriate.’’. 
SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION 
BY CONVICTED INDIVIDUAL. 
Section 19 of the Federal Deposit Insurance Act (12 
U.S.C. 1829) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(c) NONINSURED BANKS.—Subsections (a) and (b) 
shall apply to a noninsured national bank and a non-
insured State member bank, and any agency or non-
insured branch (as such terms are defined in section 1(b) 
of the International Banking Act of 1978) of a foreign 
bank as if such bank, branch, or agency were an insured 
depository institution, except such subsections shall be ap-
plied for purposes of this subsection by substituting the 
agency determined under the following paragraphs for 
‘Corporation’ each place such term appears in such sub-
sections: 
‘‘(1) The Comptroller of the Currency, in the 
case of a noninsured national bank or any Federal 
agency or noninsured Federal branch of a foreign 
bank. 
‘‘(2) The Board of Governors of the Federal 
Reserve System, in the case of a noninsured State 
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member bank or any State agency or noninsured 
State branch of a foreign bank.’’. 
SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF 
OLD RECORDS OF A DEPOSITORY INSTITU-
TION BY THE FDIC AFTER THE APPOINTMENT 
OF THE FDIC AS RECEIVER. 
Section 11(d)(15)(D) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(d)(15)(D)) is amended— 
(1) by striking ‘‘RECORDKEEPING
REQUIRE-
MENT.—After the end of the 6-year period’’ and in-
serting ‘‘RECORDKEEPING REQUIREMENT.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), after the end of the 6- 
year period’’; 
(2) by striking ‘‘to be unnecessary’’ and insert-
ing ‘‘are unnecessary and not relevant to any pend-
ing or reasonably probable future litigation’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(ii) OLD RECORDS.—In the case of 
records of an insured depository institution 
which— 
‘‘(I) are at least 10 years old, as 
of the date the Corporation is ap-
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pointed as the receiver of such deposi-
tory institution; and 
‘‘(II) are unnecessary and not 
relevant to any pending or reasonably 
probable future litigation, as provided 
in clause (i), 
the Corporation may destroy such records 
in accordance with clause (i) any time 
after such appointment is final without re-
gard to the 6-year period of limitation con-
tained in such clause.’’. 
SEC. 605. MODERNIZATION OF RECORDKEEPING REQUIRE-
MENT. 
Subsection (f) of section 10 of the Federal Deposit 
Insurance Act (12 U.S.C. 1820(f)) is amended to read as 
follows: 
‘‘(f) PRESERVATION OF AGENCY RECORDS.— 
‘‘(1) IN GENERAL.—A Federal banking agency 
may cause any and all records, papers, or documents 
kept by the agency or in the possession or custody 
of the agency to be— 
‘‘(A) photographed or microphotographed 
or otherwise reproduced upon film; or 
‘‘(B) preserved in any electronic medium 
or format which is capable of— 
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‘‘(i) being read or scanned by com-
puter; and 
‘‘(ii) being reproduced from such elec-
tronic medium or format by printing or 
any other form of reproduction of elec-
tronically stored data. 
‘‘(2) TREATMENT AS ORIGINAL RECORDS.—Any 
photographs, microphotographs, or photographic 
film or copies thereof described in paragraph (1)(A) 
or reproduction of electronically stored data de-
scribed in paragraph (1)(B) shall be deemed to be 
an original record for all purposes, including intro-
duction in evidence in all State and Federal courts 
or administrative agencies and shall be admissible to 
prove any act, transaction, occurrence, or event 
therein recorded. 
‘‘(3) AUTHORITY OF THE FEDERAL BANKING 
AGENCIES.—Any photographs, microphotographs, or 
photographic film or copies thereof described in 
paragraph (1)(A) or reproduction of electronically 
stored data described in paragraph (1)(B) shall be 
preserved in such manner as the Federal banking 
agency shall prescribe and the original records, pa-
pers, or documents may be destroyed or otherwise 
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disposed of as the Federal banking agency may di-
rect.’’. 
SEC. 606. STREAMLINING REPORTS OF CONDITION. 
Section 7(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(a)) is amended by adding the following 
new paragraph: 
‘‘(11) STREAMLINING
REPORTS
OF
CONDI-
TION.— 
‘‘(A) REVIEW
OF
INFORMATION
AND 
SCHEDULES.—Before the end of the 1-year pe-
riod beginning on the date of the enactment of 
the Financial Services Regulatory Relief Act of 
2005 and before the end of each 5-year period 
thereafter, each Federal banking agency shall, 
in consultation with the other relevant Federal 
banking agencies, review the information and 
schedules that are required to be filed by an in-
sured depository institution in a report of con-
dition required under paragraph (3). 
‘‘(B) REDUCTION OR ELIMINATION OF IN-
FORMATION
FOUND
TO
BE
UNNECESSARY.— 
After completing the review required by sub-
paragraph (A), a Federal banking agency, in 
consultation with the other relevant Federal 
banking agencies, shall reduce or eliminate any 
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requirement to file information or schedules 
under paragraph (3) (other than information or 
schedules that are otherwise required by law) if 
the agency determines that the continued collec-
tion of such information or schedules is no 
longer necessary or appropriate.’’. 
SEC. 607. EXPANSION OF ELIGIBILITY FOR 18-MONTH EX-
AMINATION 
SCHEDULE 
FOR 
COMMUNITY 
BANKS. 
Paragraph (4)(A) of section 10(d) of the Federal De-
posit Insurance Act (12 U.S.C. 1820(d)) is amended by 
striking ‘‘$250,000,000’’ and inserting ‘‘$1,000,000,000’’. 
SEC. 608. SHORT FORM REPORTS OF CONDITION FOR CER-
TAIN COMMUNITY BANKS. 
(a) IN GENERAL.—Section 7(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1817(a)) is amended by 
inserting after paragraph (11) (as added by section 606 
of this title) the following new paragraph: 
‘‘(12) SHORT
FORM
REPORTS
OF
CONDITION 
FOR COMMUNITY BANKS.— 
‘‘(A) IN
GENERAL.—With respect to re-
ports of condition required under paragraph (3) 
for each calendar quarter, an insured depository 
institution described in subparagraphs (A), (B), 
(C), and (D) of section 10(d)(4) may submit a 
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short form of any such report of condition in 2 
nonsequential quarters of any calendar year. 
‘‘(B) SHORT FORM DEFINED.—The term 
‘short form’, when used in connection with any 
report of condition required under paragraph 
(3), means a report of condition in a format es-
tablished by the appropriate Federal banking 
agency, after notice and opportunity for com-
ment, that— 
‘‘(i) is significantly and materially less 
burdensome for the insured depository in-
stitution to prepare than the format of the 
report of condition required under para-
graph (3); and 
‘‘(ii) provides sufficient material infor-
mation for the appropriate Federal bank-
ing agency to assure the maintenance of 
the safe and sound condition of the deposi-
tory institution and safe and sound prac-
tices.’’. 
(b) REGULATIONS.—Any regulation required to carry 
out the amendment made by subsection (a) shall be pub-
lished in final form before the end of the 6-month period 
beginning on the date of the enactment of this Act. 
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101 
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SEC. 609. CLARIFICATION OF EXTENT OF SUSPENSION, RE-
MOVAL, AND PROHIBITION AUTHORITY OF 
FEDERAL BANKING AGENCIES IN CASES OF 
CERTAIN CRIMES BY INSTITUTION-AFFILI-
ATED PARTIES. 
(a) INSURED DEPOSITORY INSTITUTIONS.— 
(1) IN GENERAL.—Section 8(g)(1) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1818(g)(1)) 
is amended— 
(A) in subparagraph (A)— 
(i) by striking ‘‘is charged in any in-
formation, indictment, or complaint, with 
the commission of or participation in’’ and 
inserting ‘‘is the subject of any informa-
tion, indictment, or complaint, involving 
the commission of or participation in’’; 
(ii) by striking ‘‘may pose a threat to 
the interests of the depository institution’s 
depositors or may threaten to impair pub-
lic confidence in the depository institu-
tion,’’ and insert ‘‘posed, poses, or may 
pose a threat to the interests of the deposi-
tors of, or threatened, threatens, or may 
threaten to impair public confidence in, 
any relevant depository institution (as de-
fined in subparagraph (E)),’’; and 
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(iii) by striking ‘‘affairs of the deposi-
tory institution’’ and inserting ‘‘affairs of 
any depository institution’’; 
(B) in subparagraph (B)(i), by striking 
‘‘the depository institution’’ and inserting ‘‘any 
depository institution that the subject of the no-
tice is affiliated with at the time the notice is 
issued’’; 
(C) in subparagraph (C)(i)— 
(i) by striking ‘‘may pose a threat to 
the interests of the depository institution’s 
depositors or may threaten to impair pub-
lic confidence in the depository institu-
tion,’’ and insert ‘‘posed, poses, or may 
pose a threat to the interests of the deposi-
tors of, or threatened, threatens, or may 
threaten to impair public confidence in, 
and relevant depository institution (as de-
fined in subparagraph (E)),’’; and 
(ii) by striking ‘‘affairs of the deposi-
tory institution’’ and inserting ‘‘affairs of 
any depository institution’’; 
(D) in subparagraph (C)(ii), by striking 
‘‘affairs of the depository institution’’ and in-
serting ‘‘affairs of any depository institution’’; 
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(E) in subparagraph (D)(i), by striking 
‘‘the depository institution’’ and inserting ‘‘any 
depository institution that the subject of the 
order is affiliated with at the time the order is 
issued’’; and 
(F) by adding at the end the following new 
subparagraph: 
‘‘(E) RELEVANT
DEPOSITORY
INSTITU-
TION.—For purposes of this subsection, the 
term ‘relevant depository institution’ means any 
depository institution of which the party is or 
was an institution-affiliated party at the time— 
‘‘(i) the information, indictment or 
complaint described in subparagraph (A) 
was issued; or 
‘‘(ii) the notice is issued under sub-
paragraph (A) or the order is issued under 
subparagraph (C)(i).’’. 
(2) CLERICAL AMENDMENT.—The heading for 
section 8(g) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(g)) is amended to read as follows: 
‘‘(g) SUSPENSION, REMOVAL, AND
PROHIBITION 
FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN 
CRIMINAL OFFENSES.—’’. 
(b) INSURED CREDIT UNIONS.— 
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(1) IN
GENERAL.—Section 206(i)(1) of the 
Federal Credit Union Act (12 U.S.C. 1786(i)(1)) is 
amended— 
(A) in subparagraph (A), by striking ‘‘the 
credit union’’ each place such term appears and 
inserting ‘‘any credit union’’; 
(B) in subparagraph (B)(i), by inserting 
‘‘of which the subject of the order is, or most 
recently was, an institution-affiliated party’’ be-
fore the period at the end; 
(C) in subparagraph (C)— 
(i) by striking ‘‘the credit union’’ each 
place such term appears and inserting 
‘‘any credit union’’; and 
(ii) by striking ‘‘the credit union’s’’ 
and inserting ‘‘any credit union’s’’; 
(D) in subparagraph (D)(i), by striking 
‘‘upon such credit union’’ and inserting ‘‘upon 
the credit union of which the subject of the 
order is, or most recently was, an institution-af-
filiated party’’; and 
(E) by adding at the end the following new 
subparagraph: 
‘‘(E) CONTINUATION OF AUTHORITY.—The 
Board may issue an order under this paragraph 
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with respect to an individual who is an institu-
tion-affiliated party at a credit union at the 
time of an offense described in subparagraph 
(A) without regard to— 
‘‘(i) whether such individual is an in-
stitution-affiliated party at any credit 
union at the time the order is considered 
or issued by the Board; or 
‘‘(ii) whether the credit union at 
which the individual was an institution-af-
filiated party at the time of the offense re-
mains in existence at the time the order is 
considered or issued by the Board.’’. 
(2) CLERICAL AMENDMENT.—Section 206(i) of 
the Federal Credit Union Act (12 U.S.C. 1786(i)) is 
amended by striking ‘‘(i)’’ at the beginning and in-
serting the following new subsection heading: 
‘‘(i) SUSPENSION, REMOVAL, AND
PROHIBITION 
FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN 
CRIMINAL OFFENSES.—’’. 
SEC. 610. STREAMLINING DEPOSITORY INSTITUTION MERG-
ER APPLICATION REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (4) of section 18(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) 
is amended to read as follows: 
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‘‘(4) REPORTS ON COMPETITIVE FACTORS.— 
‘‘(A) REQUEST FOR REPORT.—In the in-
terests of uniform standards and subject to 
subparagraph (B), the responsible agency shall, 
before acting on any application for approval of 
a merger transaction— 
‘‘(i) request a report on the competi-
tive factors involved from the Attorney 
General; and 
‘‘(ii) provide a copy of the request to 
the Corporation (when the Corporation is 
not the responsible agency). 
‘‘(B) CONCURRENT CONSIDERATION.—The 
responsible agency shall not be required to 
make a request under subparagraph (A) before 
acting on an application for approval of a merg-
er transaction if— 
‘‘(i) the agency finds that it must act 
immediately in order to prevent the prob-
able failure of a depository institution in-
volved in the transaction; or 
‘‘(ii) the transaction consists of a 
merger between an insured depository in-
stitution and 1 or more affiliates of the de-
pository institution. 
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‘‘(C) FURNISHING
OF
REPORT.—The re-
port requested under subparagraph (A) shall be 
furnished by the Attorney General to the re-
sponsible agency— 
‘‘(i) not more than 30 calendar days 
after the date on which the Attorney Gen-
eral received the request; or 
‘‘(ii) not more than 10 calendar days 
after such date, if the requesting agency 
advises the Attorney General that an emer-
gency exists requiring expeditious action.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 18(c)(6) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(c)(6)) is amended— 
(1) in the second sentence by striking ‘‘banks 
or savings associations involved’’ and inserting the 
following: ‘‘insured depository institutions involved, 
or if the proposed merger transaction is solely be-
tween an insured depository institution and 1 or 
more of affiliates of the depository institution,’’ and 
(2) by striking the penultimate sentence and in-
serting the following: ‘‘If the agency has advised the 
Attorney General under paragraph (4)(C)(ii) of the 
existence of an emergency requiring expeditious ac-
tion and has requested a report on the competitive 
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factors within 10 days, the transaction may not be 
consummated before the fifth calendar day after the 
date of approval by the agency.’’. 
SEC. 611. INCLUSION OF DIRECTOR OF THE OFFICE OF 
THRIFT SUPERVISION IN LIST OF BANKING 
AGENCIES 
REGARDING 
INSURANCE 
CUS-
TOMER PROTECTION REGULATIONS. 
Section 47(g)(2)(B)(i) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831x(g)(2)(B)(i)) is amended by in-
serting ‘‘the Director of the Office of Thrift Supervision,’’ 
after ‘‘Comptroller of the Currency,’’. 
SEC. 612. PROTECTION OF CONFIDENTIAL INFORMATION 
RECEIVED 
BY 
FEDERAL 
BANKING 
REGU-
LATORS FROM FOREIGN BANKING SUPER-
VISORS. 
Section 15 of the International Banking Act of 1978 
(12 U.S.C. 3109) is amended by adding at the end the 
following new subsection: 
‘‘(c) CONFIDENTIAL INFORMATION RECEIVED FROM 
FOREIGN SUPERVISORS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), a Federal banking agency shall not be 
compelled to disclose information received from a 
foreign regulatory or supervisory authority if— 
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‘‘(A) the Federal banking agency deter-
mines that the foreign regulatory or supervisory 
authority has, in good faith, determined and 
represented to such Federal banking agency 
that public disclosure of the information would 
violate the laws applicable to that foreign regu-
latory or supervisory authority; and 
‘‘(B) the relevant Federal banking agency 
obtained such information pursuant to— 
‘‘(i) such procedures as the Federal 
banking agency may establish for use in 
connection with the administration and en-
forcement of Federal banking laws; or 
‘‘(ii) a memorandum of understanding 
or other similar arrangement between the 
Federal banking agency and the foreign 
regulatory or supervisory authority. 
‘‘(2) TREATMENT
UNDER
TITLE 5, UNITED 
STATES CODE.—For purposes of section 552 of title 
5, United States Code, this subsection shall be treat-
ed as a statute described in subsection (b)(3)(B) of 
such section. 
‘‘(3) SAVINGS PROVISION.—No provision of this 
section shall be construed as— 
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‘‘(A) authorizing any Federal banking 
agency to withhold any information from any 
duly authorized committee of the House of Rep-
resentatives or the Senate; or 
‘‘(B) preventing any Federal banking 
agency from complying with an order of a court 
of the United States in an action commenced by 
the United States or such agency. 
‘‘(4) FEDERAL BANKING AGENCY DEFINED.— 
For purposes of this subsection, the term ‘Federal 
banking agency’ means the Board, the Comptroller, 
the Federal Deposit Insurance Corporation, and the 
Director of the Office of Thrift Supervision.’’. 
SEC. 613. PROHIBITION ON PARTICIPATION BY CONVICTED 
INDIVIDUAL. 
(a) EXTENSION OF AUTOMATIC PROHIBITION.—Sec-
tion 19 of the Federal Deposit Insurance Act (12 U.S.C. 
1829) is amended by inserting after subsection (c) (as 
added by section 603 of this title) the following new sub-
sections: 
‘‘(d) BANK HOLDING COMPANIES.—Subsections (a) 
and (b) shall apply to any company (other than a foreign 
bank) that is a bank holding company and any organiza-
tion organized and operated under section 25A of the Fed-
eral Reserve Act or operating under section 25 of the Fed-
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111 
HR 3505 RFS 
eral Reserve Act as if such bank holding company or orga-
nization were an insured depository institution, except 
such subsections shall be applied for purposes of this sub-
section by substituting ‘Board of Governors of the Federal 
Reserve System’ for ‘Corporation’ each place such term 
appears in such subsections. 
‘‘(e) SAVINGS AND LOAN HOLDING COMPANIES.— 
Subsections (a) and (b) shall apply to any savings and 
loan holding company and any subsidiary (other than a 
savings association) of a savings and loan holding com-
pany as if such savings and loan holding company or sub-
sidiary were an insured depository institution, except such 
subsections shall be applied for purposes of this subsection 
by substituting ‘Director of the Office of Thrift Super-
vision’ for ‘Corporation’ each place such term appears in 
such subsections.’’. 
(b) ENHANCED DISCRETION TO REMOVE CONVICTED 
INDIVIDUALS.—Section 8(e)(2)(A) of the Federal Deposit 
Insurance Act (12 U.S.C. 1818(e)(2)(A)) is amended— 
(1) by striking ‘‘or’’ at the end of clause (ii); 
(2) by striking the comma at the end of clause 
(iii) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
clause: 
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‘‘(iv) an institution-affiliated party of 
a subsidiary (other than a bank) of a bank 
holding company has been convicted of any 
criminal offense involving dishonesty or a 
breach of trust, or has agreed to enter into 
a pretrial diversion or similar program in 
connection with a prosecution for such an 
offense,’’. 
SEC. 614. CLARIFICATION THAT NOTICE AFTER SEPARA-
TION FROM SERVICE MAY BE MADE BY AN 
ORDER. 
(a) IN GENERAL.—Section 8(i)(3) of the Federal De-
posit Insurance Act (12 U.S.C. 1818(i)(3)) is amended by 
inserting ‘‘or order’’ after ‘‘notice’’ each place such term 
appears. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The heading for section 8(i)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1818(i)(3)) is amended by insert-
ing ‘‘OR ORDER’’ after ‘‘NOTICE’’. 
SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS 
REGARDING FDIC DEPOSIT INSURANCE COV-
ERAGE. 
(a) IN GENERAL.—Section 18(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1828(a)) is amended by 
adding at the end the following new paragraph: 
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‘‘(4) FALSE
ADVERTISING, MISUSE
OF
FDIC 
NAMES, AND MISREPRESENTATION TO INDICATE IN-
SURED STATUS.— 
‘‘(A) PROHIBITION
ON
FALSE
ADVER-
TISING AND MISUSE OF FDIC NAMES.—No per-
son may— 
‘‘(i) use the terms ‘Federal Deposit’, 
‘Federal Deposit Insurance’, ‘Federal De-
posit Insurance Corporation’, any combina-
tion of such terms, or the abbreviation 
‘FDIC’ as part of the business name or 
firm name of any person, including any 
corporation, partnership, business trust, 
association, or other business entity; or 
‘‘(ii) use such terms or any other sign 
or symbol as part of an advertisement, so-
licitation, or other document, 
to represent, suggest or imply that any deposit 
liability, obligation, certificate or share is in-
sured or guaranteed by the Federal Deposit In-
surance Corporation, if such deposit liability, 
obligation, certificate, or share is not insured or 
guaranteed by the Corporation. 
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‘‘(B) PROHIBITION
ON
MISREPRESENTA-
TIONS OF INSURED STATUS.—No person may 
knowingly misrepresent— 
‘‘(i) that any deposit liability, obliga-
tion, certificate, or share is federally in-
sured, if such deposit liability, obligation, 
certificate, or share is not insured by the 
Corporation; or 
‘‘(ii) the extent to which or the man-
ner in which any deposit liability, obliga-
tion, certificate, or share is insured by the 
Federal Deposit Insurance Corporation, if 
such deposit liability, obligation, certificate, 
or share is not insured by the Corporation 
to the extent or in the manner represented. 
‘‘(C) AUTHORITY OF FDIC.—The Corpora-
tion shall have— 
‘‘(i) jurisdiction over any person that 
violates this paragraph, or aids or abets 
the violation of this paragraph; and 
‘‘(ii) for purposes of enforcing the re-
quirements of this paragraph with regard 
to any person— 
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‘‘(I) the authority of the Cor-
poration under section 10(c) to con-
duct investigations; and 
‘‘(II) the enforcement authority 
of the Corporation under subsections 
(b), (c), (d) and (i) of section 8, 
as if such person were a state nonmember in-
sured bank. 
‘‘(D) OTHER
ACTIONS
PRESERVED.—No 
provision of this paragraph shall be construed 
as barring any action otherwise available, under 
the laws of the United States or any State, to 
any Federal or State law enforcement agency or 
individual.’’. 
(b) ENFORCEMENT ORDERS.—Section 8(c) of the 
Federal Deposit Insurance Act (12 U.S.C. 1818(c)) is 
amended by adding at the end the following new para-
graph: 
‘‘(4) FALSE
ADVERTISING
OR
MISUSE
OF 
NAMES TO INDICATE INSURED STATUS.— 
‘‘(A) TEMPORARY ORDER.— 
‘‘(i) IN
GENERAL.—If a notice of 
charges served under subsection (b)(1) of 
this section specifies on the basis of par-
ticular facts that any person is engaged in 
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HR 3505 RFS 
conduct described in section 18(a)(4), the 
Corporation may issue a temporary order 
requiring— 
‘‘(I) the immediate cessation of 
any activity or practice described, 
which gave rise to the notice of 
charges; and 
‘‘(II) affirmative action to pre-
vent any further, or to remedy any ex-
isting, violation. 
‘‘(ii) EFFECT OF ORDER.—Any tem-
porary order issued under this subpara-
graph shall take effect upon service. 
‘‘(B) EFFECTIVE PERIOD OF TEMPORARY 
ORDER.—A temporary order issued under sub-
paragraph (A) shall remain effective and en-
forceable, pending the completion of an admin-
istrative proceeding pursuant to subsection 
(b)(1) in connection with the notice of 
charges— 
‘‘(i) until such time as the Corpora-
tion shall dismiss the charges specified in 
such notice; or 
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‘‘(ii) if a cease-and-desist order is 
issued against such person, until the effec-
tive date of such order. 
‘‘(C) CIVIL MONEY PENALTIES.—Violations 
of section 18(a)(4) shall be subject to civil 
money penalties as set forth in subsection (i) in 
an amount not to exceed $1,000,000 for each 
day during which the violation occurs or con-
tinues.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 18(a)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1828(a)) is amended— 
(A) in the 1st sentence by striking ‘‘of this 
subsection’’ and inserting ‘‘of paragraphs (1) 
and (2)’’; 
(B) by striking the 2nd sentence; and 
(C) in the 3rd sentence, by striking ‘‘of 
this subsection’’ and inserting ‘‘of paragraphs 
(1) and (2)’’. 
(2) The heading for subsection (a) of section 18 
of the Federal Deposit Insurance Act (12 U.S.C. 
1828(a)) is amended by striking ‘‘INSURANCE 
LOGO.—’’ and inserting ‘‘REPRESENTATIONS
OF 
DEPOSIT INSURANCE.—’’. 
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SEC. 616. CHANGES REQUIRED TO SMALL BANK HOLDING 
COMPANY POLICY STATEMENT ON ASSESS-
MENT OF FINANCIAL AND MANAGERIAL FAC-
TORS. 
(a) SMALL
BANK
HOLDING
COMPANY
POLICY 
STATEMENT ON ASSESSMENT OF FINANCIAL AND MANA-
GERIAL FACTORS.— 
(1) IN GENERAL.—Before the end of the 6- 
month period beginning on the date of the enact-
ment of this Act, the Board of Governors of the 
Federal Reserve System shall publish in the Federal 
Register proposed revisions to the Small Bank Hold-
ing Company Policy Statement on Assessment of Fi-
nancial and Managerial Factors (12 C.F.R. part 
225—appendix C) that provide that the policy shall 
apply to a bank holding company which has pro 
forma 
consolidated 
assets 
of 
less 
than 
$1,000,000,000 and that— 
(A) is not engaged in any nonbanking ac-
tivities involving significant leverage; and 
(B) does not have a significant amount of 
outstanding debt that is held by the general 
public. 
(2) ADJUSTMENT OF AMOUNT.—The Board of 
Governors of the Federal Reserve System shall an-
nually adjust the dollar amount referred to in para-
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HR 3505 RFS 
graph (1) in the Small Bank Holding Company Pol-
icy Statement on Assessment of Financial and Man-
agerial Factors by an amount equal to the percent-
age increase, for the most recent year, in total assets 
held by all insured depository institutions, as deter-
mined by the Board. 
(b) INCREASE IN DEBT-TO-EQUITY RATIO OF SMALL 
BANK HOLDING COMPANY.—Before the end of the 6- 
month period beginning on the date of the enactment of 
this Act, the Board of Governors of the Federal Reserve 
System shall publish in the Federal Register proposed re-
visions to the Small Bank Holding Company Policy State-
ment on Assessment of Financial and Managerial Factors 
(12 C.F.R. part 225—appendix C) such that the debt-to- 
equity ratio allowable for a small bank holding company 
in order to remain eligible to pay a corporate dividend and 
to remain eligible for expedited processing procedures 
under Regulation Y of the Board of Governors of the Fed-
eral Reserve System would increase from 1:1 to 3:1. 
SEC. 617. EXCEPTION TO ANNUAL PRIVACY NOTICE RE-
QUIREMENT UNDER THE GRAMM-LEACH-BLI-
LEY ACT. 
Section 503 of the Gramm-Leach-Bliley Act (15 
U.S.C. 6803) is amended by adding the following new sub-
sections: 
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‘‘(c) EXCEPTION
TO ANNUAL NOTICE REQUIRE-
MENT.—A financial institution that— 
‘‘(1) provides nonpublic personal information 
only in accordance with the provisions of subsection 
(b)(2) or (e) of section 502 or regulations prescribed 
under section 504(b); 
‘‘(2) does not share information with affiliates 
under section 603(d)(2)(A) of the Fair Credit Re-
porting Act; and 
‘‘(3) has not changed its policies and practices 
with regard to disclosing nonpublic personal infor-
mation from the policies and practices that were dis-
closed in the most recent disclosure sent to con-
sumers in accordance with this subsection, 
shall not be required to provide an annual disclosure under 
this subsection until such time as the financial institution 
fails to comply with any criteria described in paragraph 
(1), (2), or (3). 
‘‘(d) EXCEPTION TO NOTICE REQUIREMENT.—A fi-
nancial institution shall not be required to provide any dis-
closure under this section if— 
‘‘(1) the financial institution is licensed by a 
State and is subject to existing regulation of con-
sumer confidentiality that prohibits disclosure of 
nonpublic personal information without knowing and 
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HR 3505 RFS 
expressed consent of the consumer in the form of 
laws, rules, or regulation of professional conduct or 
ethics promulgated either by the court of highest ap-
pellate authority or by the principal legislative body 
or regulatory agency or body of any State of the 
United States, the District of Columbia, any terri-
tory of the United States, Puerto Rico, Guam, 
American Samoa, the Trust Territory of the Pacific 
Islands, the Virgin Islands, or the Northern Mariana 
Islands; or 
‘‘(2) the financial institution is licensed by a 
State and becomes subject to future regulation of 
consumer confidentiality that prohibits disclosure of 
nonpublic personal information without knowing and 
expressed consent of the consumer in the form of 
laws, rules, or regulation of professional conduct or 
ethics promulgated either by the court of highest ap-
pellate authority or by the principal legislative body 
or regulatory agency or body of any State of the 
United States, the District of Columbia, any terri-
tory of the United States, Puerto Rico, Guam, 
American Samoa, the Trust Territory of the Pacific 
Islands, the Virgin Islands, or the Northern Mariana 
Islands.’’. 
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SEC. 618. BIENNIAL REPORTS ON THE STATUS OF AGENCY 
EMPLOYMENT OF MINORITIES AND WOMEN. 
(a) IN GENERAL.—Before December 31, 2005, and 
the end of each 2-year period beginning after such date, 
each Federal banking agency shall submit a report to the 
Congress on the status of the employment by the agency 
of minority individuals and women. 
(b) FACTORS TO BE INCLUDED.—The report shall 
include a detailed assessment of each of the following: 
(1) The extent of hiring of minority individuals 
and women by the agency as of the time the report 
is prepared. 
(2) The successes achieved and challenges faced 
by the agency in operating minority and women out-
reach programs. 
(3) Challenges the agency may face in finding 
qualified minority individual and women applicants. 
(4) Such other information, findings, and con-
clusions, and recommendations for legislative or 
agency action, as the agency may determine to be 
appropriate to include in the report. 
(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) FEDERAL
BANKING
AGENCY.—The term 
‘‘Federal banking agency’’— 
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(A) has the same meaning as in section 
3(z) of the Federal Deposit Insurance Act; and 
(B) includes the National Credit Union 
Administration. 
(2) MINORITY.—The term ‘‘minority’’ has the 
same meaning as in section 1204(c)(3) of the Finan-
cial Institutions Reform, Recovery, and Enforcement 
Act of 1989. 
SEC. 619. COORDINATION OF STATE EXAMINATION AU-
THORITY. 
Section 10(h) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(h)) is amended to read as follows: 
‘‘(h) COORDINATION
OF EXAMINATION AUTHOR-
ITY.— 
‘‘(1) STATE BANK SUPERVISORS OF HOME AND 
HOST STATES.— 
‘‘(A) HOME STATE OF BANK.—The appro-
priate State bank supervisor of the home State 
of an insured State bank has authority to ex-
amine and supervise the bank. 
‘‘(B) HOST STATE BRANCHES.—The State 
bank supervisor of the home State of an in-
sured State bank and any State bank super-
visor of an appropriate host State shall exercise 
their respective authority to supervise and ex-
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amine the branches of the bank in a host State 
in accordance with the terms of any applicable 
cooperative agreement between the home State 
bank supervisor and the State bank supervisor 
of the relevant host State. 
‘‘(C) SUPERVISORY FEES.—Except as ex-
pressly provided in a cooperative agreement be-
tween the State bank supervisors of the home 
State and any host State of an insured State 
bank, only the State bank supervisor of the 
home State of an insured State bank may levy 
or charge State supervisory fees on the bank. 
‘‘(2) HOST STATE EXAMINATION.— 
‘‘(A) IN
GENERAL.—With respect to a 
branch operated in a host State by an out-of- 
State insured State bank that resulted from an 
interstate merger transaction approved under 
section 44 or that was established in such State 
pursuant to section 5155(g) of the Revised 
Statutes, the third undesignated paragraph of 
section 9 of the Federal Reserve Act or section 
18(d)(4) of this Act, the appropriate State bank 
supervisor of such host State may— 
‘‘(i) with written notice to the State 
bank supervisor of the bank’s home State 
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and subject to the terms of any applicable 
cooperative agreement with the State bank 
supervisor of such home State, examine 
such branch for the purpose of determining 
compliance with host State laws that are 
applicable pursuant to section 24(j) of this 
Act, including those that govern commu-
nity reinvestment, fair lending, and con-
sumer protection; and 
‘‘(ii) if expressly permitted under and 
subject to the terms of a cooperative agree-
ment with the State bank supervisor of the 
bank’s home State or if such out-of-State 
insured State bank has been determined to 
be in a troubled condition by either the 
State bank supervisor of the bank’s home 
State or the bank’s appropriate Federal 
banking agency, participate in the exam-
ination of the bank by the State bank su-
pervisor of the bank’s home State to ascer-
tain that the activities of the branch in 
such host State are not conducted in an 
unsafe or unsound manner. 
‘‘(B) NOTICE OF DETERMINATION.— 
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HR 3505 RFS 
‘‘(i) IN
GENERAL.—The State bank 
supervisor of the home State of an insured 
State bank should notify the State bank 
supervisor of each host State of the bank 
if there has been a final determination that 
the bank is in a troubled condition. 
‘‘(ii) TIMING OF NOTICE.—The State 
bank supervisor of the home State of an 
insured State bank should provide notice 
under clause (i) as soon as reasonably pos-
sible but in all cases within 15 business 
days after the State bank supervisor has 
made such final determination or has re-
ceived written notification of such final de-
termination. 
‘‘(3) HOST STATE ENFORCEMENT.—If the State 
bank supervisor of a host State determines that a 
branch of an out-of-State State insured State bank 
is violating any law of the host State that is applica-
ble to such branch pursuant to section 24(j) of this 
Act, including a law that governs community rein-
vestment, fair lending, or consumer protection, the 
State bank supervisor of the host State or, to the ex-
tent authorized by the law of the host State, a host 
State law enforcement officer may, with written no-
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HR 3505 RFS 
tice to the State bank supervisor of the bank’s home 
State and subject to the terms of any applicable co-
operative agreement with the State bank supervisor 
of the bank’s home State, undertake such enforce-
ment actions and proceedings as would be permitted 
under the law of the host State as if the branch 
were a bank chartered by that host State. 
‘‘(4) COOPERATIVE AGREEMENT.— 
‘‘(A) IN GENERAL.—The State bank super-
visors from 2 or more States may enter into co-
operative agreements to facilitate State regu-
latory supervision of State banks, including co-
operative agreements relating to the coordina-
tion of examinations and joint participation in 
examinations. For purposes of this subsection 
(h), the term ‘cooperative agreement’ means a 
written agreement that is signed by the home 
State bank supervisor and host State bank su-
pervisor to facilitate State regulatory super-
vision of State banks and includes nationwide 
or multi-state cooperative agreements and coop-
erative agreements solely between the home 
State and host State. 
‘‘(B) RULE
OF
CONSTRUCTION.—Except 
for State bank supervisors, no provision of this 
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HR 3505 RFS 
subsection relating to such cooperative agree-
ments shall be construed as limiting in any way 
the authority of home and host State law en-
forcement officers, regulatory supervisors, or 
other officials that have not signed such cooper-
ative agreements to enforce host State laws that 
are applicable to a branch of an out-of-State in-
sured State bank located in the host State pur-
suant to section 24(j) of this Act. 
‘‘(5) FEDERAL REGULATORY AUTHORITY.—No 
provision of this subsection shall be construed as 
limiting in any way the authority of any Federal 
banking agency. 
‘‘(6) STATE
TAXATION
AUTHORITY
NOT
AF-
FECTED.—No provision of this subsection (h) shall 
be construed as affecting the authority of any State 
or political subdivision of any State to adopt, apply, 
or administer any tax or method of taxation to any 
bank, bank holding company, or foreign bank, or 
any affiliate of any bank, bank holding company, or 
foreign bank, to the extent such tax or tax method 
is otherwise permissible by or under the Constitution 
of the United States or other Federal law. 
‘‘(7) DEFINITIONS.—For purpose of this sec-
tion, the following definition shall apply: 
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‘‘(A) HOST STATE, HOME STATE, OUT-OF- 
STATE BANK.—The terms ‘host State’, ‘home 
State’, and ‘out-of-State bank’ have the same 
meanings as in section 44(g). 
‘‘(B) STATE
SUPERVISORY
FEES.—The 
term ‘State supervisory fees’ means assess-
ments, examination fees, branch fees, license 
fees, and all other fees that are levied or 
charged by a State bank supervisor directly 
upon an insured State bank or upon branches 
of an insured State bank. 
‘‘(C) TROUBLED
CONDITION.—Solely for 
purposes of subparagraph (2)(B) of this sub-
section (h), an insured State bank has been de-
termined to be in ‘troubled condition’ if the 
bank— 
‘‘(i) has a composite rating, as deter-
mined in its most recent report of exam-
ination, of 4 or 5 under the Uniform Fi-
nancial 
Institutions 
Ratings 
System 
(UFIRS); or 
‘‘(ii) is subject to a proceeding initi-
ated by the Corporation for termination or 
suspension of deposit insurance; or 
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‘‘(iii) is subject to a proceeding initi-
ated by the State bank supervisor of the 
bank’s home State to vacate, revoke, or 
terminate the charter of the bank, or to 
liquidate the bank, or to appoint a receiver 
for the bank. 
‘‘(D) FINAL
DETERMINATION.—For the 
purposes of paragraph (2)(B), the term ‘final 
determination’ means the transmittal of a re-
port of examination to the bank or transmittal 
of official notice of proceedings to the bank.’’. 
SEC. 620. NONWAIVER OF PRIVILEGES. 
(a) INSURED DEPOSITORY INSTITUTIONS.—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: 
‘‘(x) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO 
BANKING AGENCY OR SUPERVISOR.— 
‘‘(1) IN GENERAL.—The submission by any per-
son of any information to any Federal banking agen-
cy, State bank supervisor, or foreign banking au-
thority for any purpose in the course of any super-
visory or regulatory process of such agency, super-
visor, or authority shall not be construed as waiving, 
destroying, or otherwise affecting any privilege such 
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HR 3505 RFS 
person may claim with respect to such information 
under Federal or State law as to any person or enti-
ty other than such agency, supervisor, or authority. 
‘‘(2) RULE OF CONSTRUCTION.—No provision 
of paragraph (1) may be construed as implying or 
establishing that— 
‘‘(A) any person waives any privilege appli-
cable to information that is submitted or trans-
ferred under any circumstance to which para-
graph (1) does not apply; or 
‘‘(B) any person would waive any privilege 
applicable to any information by submitting the 
information to any Federal banking agency, 
State bank supervisor, or foreign banking au-
thority, but for this subsection.’’. 
(b) INSURED CREDIT UNIONS.—Section 205 of the 
Federal Credit Union Act (12 U.S.C.1785) is amended by 
adding at the end the following new subsection: 
‘‘(j) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO 
BANKING AGENCY OR SUPERVISOR.— 
‘‘(1) IN GENERAL.—The submission by any per-
son of any information to the Administration, any 
State credit union supervisor, or foreign banking au-
thority for any purpose in the course of any super-
visory or regulatory process of such Board, super-
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HR 3505 RFS 
visor, or authority shall not be construed as waiving, 
destroying, or otherwise affecting any privilege such 
person may claim with respect to such information 
under Federal or State law as to any person or enti-
ty other than such Board, supervisor, or authority. 
‘‘(2) RULE OF CONSTRUCTION.—No provision 
of paragraph (1) may be construed as implying or 
establishing that— 
‘‘(A) any person waives any privilege appli-
cable to information that is submitted or trans-
ferred under any circumstance to which para-
graph (1) does not apply; or 
‘‘(B) any person would waive any privilege 
applicable to any information by submitting the 
information to the Administration, any State 
credit union supervisor, or foreign banking au-
thority, but for this subsection.’’. 
SEC. 621. RIGHT TO FINANCIAL PRIVACY ACT OF 1978 
AMENDMENT. 
Paragraph (1) of section 1101 of the Right to Finan-
cial Privacy Act of 1978 (12 U.S.C. 3401) is amended 
by inserting ‘‘(including any lender who advances funds 
on pledges of personal property)’’ after ‘‘consumer finance 
institution’’. 
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SEC. 622. DEPUTY DIRECTOR; SUCCESSION AUTHORITY 
FOR DIRECTOR OF THE OFFICE OF THRIFT 
SUPERVISION. 
(a) ESTABLISHMENT OF POSITION OF DEPUTY DI-
RECTOR.—Section 3(c)(5) of the Home Owners’ Loan Act 
(12 U.S.C. 1462a(c)(5)) is amended to read as follows: 
‘‘(5) DEPUTY DIRECTOR.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall appoint a Deputy Director and 
may appoint up to 3 additional Deputy Direc-
tors. 
‘‘(B) FIRST
DEPUTY
DIRECTOR.—If the 
Secretary of the Treasury appoints more than 
1 Deputy Director of the Office, the Secretary 
shall designate one such appointee as the First 
Deputy Director. 
‘‘(C) DUTIES.—Each Deputy Director ap-
pointed under this paragraph shall take an oath 
of office and perform such duties as the Direc-
tor shall direct. 
‘‘(D) COMPENSATION
AND
BENEFITS.— 
The Director shall fix the compensation and 
benefits for each Deputy Director in accordance 
with this Act.’’. 
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HR 3505 RFS 
(b) SERVICE OF DEPUTY DIRECTOR AS ACTING DI-
RECTOR.—Section 3(c)(3) of the Home Owners’ Loan Act 
(12 U.S.C. 1462a(c)(3)) is amended— 
(1) by striking ‘‘VACANCY.—A vacancy in the 
position of Director’’ and inserting ‘‘VACANCY.— 
‘‘(A) IN GENERAL.—A vacancy in the posi-
tion of Director’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(B) ACTING DIRECTOR.— 
‘‘(i) IN GENERAL.—In the event of a 
vacancy in the position of Director or dur-
ing the absence or disability of the Direc-
tor, the Deputy Director shall serve as 
Acting Director. 
‘‘(ii) SUCCESSION IN CASE OF 2 OR 
MORE DEPUTY DIRECTORS.—If there are 2 
or more Deputy Directors serving at the 
time a vacancy in the position of Director 
occurs or the absence or disability of the 
Director commences, the First Deputy Di-
rector shall serve as Acting Director under 
clause (i) followed by such other Deputy 
Directors under any order of succession 
the Director may establish. 
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‘‘(iii) AUTHORITY OF ACTING DIREC-
TOR.—Any Deputy Director, while serving 
as Acting Director under this subpara-
graph, shall be vested with all authority, 
duties, and privileges of the Director under 
this Act and any other provision of Federal 
law.’’. 
SEC. 623. LIMITATION ON SCOPE OF NEW AGENCY GUIDE-
LINES. 
(a) IN GENERAL.—The provisions of the multi-agen-
cy guidance Numbered 2003–1 issued by the Comptroller 
of the Currency, the Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance Corpora-
tion, and the Director of the Office of Thrift Supervision 
that relate to minimum credit card payments and negative 
amortization— 
(1) shall only apply to new credit card accounts 
established by a creditor for a consumer after the 
date of the enactment of this Act under an open end 
consumer credit plan; and 
(2) shall not apply to any outstanding balance 
on any credit card account under an open end con-
sumer credit plan as of such date of enactment. 
(b) DEFINITIONS.—For purposes of this section, the 
terms ‘‘credit’’, ‘‘credit card’’, ‘‘creditor’’, ‘‘consumer’’ and 
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‘‘open end credit plan’’ have the same meanings as in sec-
tion 103 of the Truth in Lending Act. 
(c) SUNSET PROVISION.—This section shall not apply 
after the end of the 3-year period beginning on the date 
of the enactment of this Act . 
TITLE VII—‘‘BSA’’ COMPLIANCE 
BURDEN REDUCTION 
SEC. 701. EXCEPTION FROM CURRENCY TRANSACTION RE-
PORTS FOR SEASONED CUSTOMERS. 
(a) FINDINGS.—The Congress finds as follows: 
(1) The completion of and filing of currency 
transaction reports under section 5313 of title 31, 
United States Code, poses a compliance burden on 
the financial industry. 
(2) Due to the nature of the transactions or the 
persons and entities conducting such transactions, 
certain such reports as currently filed do not appear 
to be relevant to the detection, deterrence, or inves-
tigation of financial crimes, including money laun-
dering and the financing of terrorism. 
(3) However, the data contained in such reports 
can provide valuable context for the analysis of other 
data derived pursuant to subchapter II of chapter 
53 of title 31, United States Code, as well as inves-
tigative data, which provides invaluable and indis-
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pensable information supporting efforts to combat 
money laundering and other financial crimes. 
(4) An exemption from the reporting require-
ments for certain currency transactions that are of 
little or no value to ongoing efforts of law enforce-
ment agencies, financial regulatory agencies, and the 
financial services industry to investigate, detect, or 
deter financial crimes would serve to balance the 
burden placed on members of the financial services 
industry with the compelling need to produce and 
provide meaningful information to policy-makers, fi-
nancial regulators, law enforcement, and intelligence 
agencies. 
(5) The Secretary of the Treasury has by regu-
lation, and in accordance with section 5313 of title 
31, United States Code, implemented a process by 
which institutions may seek exemptions from filing 
certain currency transaction reports based on appro-
priate circumstances; however, the existing exemp-
tion process has not adequately balanced the burden 
on the financial industry with the Government’s 
need for data to support its efforts in combating fi-
nancial crime. 
(6) The act of providing notice to the Secretary 
of the Treasury of designations of exemption pro-
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