I 
108TH CONGRESS 
1ST SESSION H. R. 1375
To provide regulatory relief and improve productivity for insured depository 
institutions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 20, 2003
Mrs. CAPITO (for herself, Mr. OXLEY, Mr. BACHUS, and Mr. ROSS) introduced 
the following bill; which was referred to the Committee on Financial Services 
A BILL 
To provide regulatory relief and improve productivity for 
insured depository institutions, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Financial Services Regulatory Relief Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—NATIONAL BANK PROVISIONS 
Sec. 101. National bank directors. 
Sec. 102. Voting in shareholder elections. 
Sec. 103. Simplifying dividend calculations for national banks.
Sec. 104. Repeal of obsolete limitation on removal authority of the Comptroller 
of the Currency. 
Sec. 105. Repeal of intrastate branch capital requirements. 
Sec. 106. Clarification of waiver of publication requirements for bank merger 
notices. 
Sec. 107. Capital equivalency deposits for Federal branches and agencies of for-
eign banks. 
Sec. 108. Equal treatment for Federal agencies of foreign banks. 
Sec. 109. Maintenance of a Federal branch and a Federal agency in the same 
State. 
Sec. 110. Business organization flexibility for national banks. 
Sec. 111. Clarification of the main place of business of a national bank. 
TITLE II—SAVINGS ASSOCIATION PROVISIONS 
Sec. 201. Parity for savings associations under the Securities Exchange Act of 
1934 and the Investment Advisers Act of 1940. 
Sec. 202. Investments by Federal savings associations authorized to promote 
the public welfare. 
Sec. 203. Mergers and consolidations of Federal savings associations with non-
depository institution affiliates. 
Sec. 204. Repeal of statutory dividend notice requirement for savings associa-
tion subsidiaries of savings and loan holding companies. 
Sec. 205. Modernizing statutory authority for trust ownership of savings asso-
ciations. 
Sec. 206. Repeal of overlapping rules governing purchased mortgage servicing 
rights. 
Sec. 207. Restatement of authority for Federal savings associations to invest in 
small business investment companies. 
Sec. 208. Removal of limitation on investments in auto loans. 
Sec. 209. Selling and offering of deposit products. 
Sec. 210. Funeral- and cemetery-related fiduciary services. 
Sec. 211. Repeal of qualified thrift lender requirement with respect to out-of-
state branches. 
Sec. 212. Small business and other commercial loans. 
Sec. 213. Clarifying citizenship of Federal savings associations for Federal 
court jurisdiction. 
Sec. 214. Clarification of applicability of certain procedural doctrines. 
TITLE III—CREDIT UNION PROVISIONS 
Sec. 301. Privately insured credit unions authorized to become members of a 
Federal home loan bank. 
Sec. 302. Leases of land on Federal facilities for credit unions. 
Sec. 303. Investments in securities by Federal credit unions. 
Sec. 304. Increase in general 12-year limitation of term of Federal credit union 
loans to 15 years. 
Sec. 305. Increase in 1 percent investment limit in credit union service organi-
zations. 
Sec. 306. Member business loan exclusion for loans to nonprofit religious orga-
nizations. 
Sec. 307. Check cashing and money transfer services offered within the field of 
membership. 
Sec. 308. Voluntary mergers involving multiple common-bond credit unions. 
Sec. 309. Conversions involving common-bond credit unions. 
Sec. 310. Credit union governance.
Sec. 311. Providing the National Credit Union Administration with greater 
flexibility in responding to market conditions. 
Sec. 312. Exemption from pre-merger notification requirement of the Clayton 
Act. 
Sec. 313. Treatment of credit unions as depository institutions under securities 
laws. 
TITLE IV—DEPOSITORY INSTITUTION PROVISIONS 
Sec. 401. Easing restrictions on interstate branching and mergers. 
Sec. 402. Statute of limitations for judicial review of appointment of a receiver 
for depository institutions. 
Sec. 403. Reporting requirements relating to insider lending. 
Sec. 404. Amendment to provide an inflation adjustment for the small deposi-
tory institution exception under the Depository Institution 
Management Interlocks Act. 
Sec. 405. Enhancing the safety and soundness of insured depository institu-
tions. 
Sec. 406. Investments by insured savings associations in bank service compa-
nies authorized. 
Sec. 407. Cross guarantee authority. 
Sec. 408. Golden parachute authority and nonbank holding companies. 
Sec. 409. Amendments relating to change in bank control. 
TITLE V—DEPOSITORY INSTITUTION AFFILIATES PROVISIONS 
Sec. 501. Clarification of cross marketing provision. 
Sec. 502. Amendment to provide the Federal Reserve Board with discretion 
concerning the imputation of control of shares of a company 
by trustees. 
Sec. 503. Eliminating geographic limits on thrift service companies. 
Sec. 504. Clarification of scope of applicable rate provision. 
TITLE VI—BANKING AGENCY PROVISIONS 
Sec. 601. Waiver of examination schedule in order to allocate examiner re-
sources. 
Sec. 602. Interagency data sharing. 
Sec. 603. Penalty for unauthorized participation by convicted individual. 
Sec. 604. Amendment permitting the destruction of old records of a depository 
institution by the FDIC after the appointment of the FDIC as 
receiver. 
Sec. 605. Modernization of FDIC recordkeeping requirement. 
Sec. 606. Clarification of extent of suspension, removal, and prohibition author-
ity of Federal banking agencies in cases of certain crimes by 
institution-affiliated parties. 
Sec. 607. Streamlining depository institution merger application requirements. 
Sec. 608. Inclusion of Director of the Office of Thrift Supervision in list of 
banking agencies regarding insurance customer protection reg-
ulations. 
Sec. 609. Shortening of post-approval antitrust review period with the agree-
ment of the Attorney General. 
Sec. 610. Protection of confidential information received by Federal banking 
regulators from foreign banking supervisors.
Sec. 611. Prohibition on the participation in the affairs of bank holding com-
pany or Edge Act or agreement corporations by convicted indi-
vidual. 
Sec. 612. Clarification that notice after separation from service may be made 
by an order. 
Sec. 613. Examiners of financial institutions. 
Sec. 614. Parity in standards for institution-affiliated parties. 
Sec. 615. Enforcement against misrepresentations regarding FDIC deposit in-
surance coverage. 
Sec. 616. Compensation of Federal home loan bank directors. 
TITLE VII—CLERICAL AND TECHNICAL AMENDMENTS 
Sec. 701. Clerical amendments to the Home Owners’ Loan Act. 
Sec. 702. Technical corrections to the Federal Credit Union Act. 
Sec. 703. Other technical corrections. 
Sec. 704. Repeal of obsolete provisions of the Bank Holding Company Act of 
1956.
TITLE I—NATIONAL BANK 
PROVISIONS 
SEC. 101. NATIONAL BANK DIRECTORS. 
Section 5146 of the Revised Statutes of the United 
States (12 U.S.C. 72) is amended—
(1) by striking ‘‘SEC. 5146. Every director 
must during’’ and inserting the following: 
‘‘SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS. 
‘‘(a) RESIDENCY REQUIREMENTS.—Every director of 
a national bank shall, during’’; 
(2) by striking ‘‘total number of directors. 
Every director must own in his or her own right’’ 
and inserting ‘‘total number of directors. 
‘‘(b) INVESTMENT REQUIREMENT.—
‘‘(1) IN
GENERAL.—Every director of a na-
tional bank shall own, in his or her own right,’’; and
(3) by adding at the end the following new 
paragraph: 
‘‘(2) EXCEPTION FOR SUBORDINATED DEBT IN 
CERTAIN
CASES.—In lieu of the requirements of 
paragraph (1) relating to the ownership of capital 
stock in the national bank, the Comptroller of the 
Currency may, by regulation or order, permit an in-
dividual to serve as a director of a national bank 
that has elected, or notifies the Comptroller of the 
bank’s intention to elect, to operate as a S corpora-
tion pursuant to section 1362(a) of the Internal 
Revenue Code of 1986, if that individual holds debt 
of at least $1,000 issued by the national bank that 
is subordinated to the interests of depositors and 
other general creditors of the national bank.’’. 
SEC. 102. VOTING IN SHAREHOLDER ELECTIONS. 
Section 5144 of the Revised Statutes of the United 
States (12 U.S.C. 61) is amended—
(1) by striking ‘‘or to cumulate’’ and inserting 
‘‘or, if so provided by the articles of association of 
the national bank, to cumulate’’; 
(2) by striking the comma after ‘‘his shares 
shall equal’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘The Comptroller of the Currency may pre-
scribe such regulations to carry out the purposes of 
this section as the Comptroller determines to be ap-
propriate.’’. 
SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS FOR NA-
TIONAL BANKS. 
Section 5199 of the Revised Statutes of the United 
States (12 U.S.C. 60) is amended to read as follows: 
‘‘SEC. 5199. NATIONAL BANK DIVIDENDS. 
‘‘(a) IN GENERAL.—Subject to subsection (b), the di-
rectors of any national bank may declare a dividend of 
so much of the undivided profits of the bank as the direc-
tors judge to be expedient. 
‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIR-
CUMSTANCES.—A national bank may not declare and pay 
dividends in any year in excess of an amount equal to the 
sum of the total of the net income of the bank for that 
year and the retained net income of the bank in the pre-
ceding two years, minus any transfers required by the 
Comptroller of the Currency (including any transfers re-
quired to be made to a fund for the retirement of any 
preferred stock), unless the Comptroller of the Currency 
approves the declaration and payment of dividends in ex-
cess of such amount.’’.
SEC. 104. REPEAL OF OBSOLETE LIMITATION ON REMOVAL 
AUTHORITY OF THE COMPTROLLER OF THE 
CURRENCY. 
Section 8(e)(4) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(e)(4)) is amended by striking the 5th 
sentence. 
SEC. 105. REPEAL OF INTRASTATE BRANCH CAPITAL RE-
QUIREMENTS. 
Section 5155(c) of the Revised Statutes of the United 
States (12 U.S.C. 36(c)) is amended—
(1) in the 2nd sentence, by striking ‘‘, without 
regard to the capital requirements of this section,’’; 
and 
(2) by striking the last sentence. 
SEC. 106. CLARIFICATION OF WAIVER OF PUBLICATION RE-
QUIREMENTS FOR BANK MERGER NOTICES. 
The last sentence of sections 2(a) and 3(a)(2) of the 
National Bank Consolidation and Merger Act (12 U.S.C. 
215(a) and 215a(a)(2), respectively) are each amended by 
striking ‘‘Publication of notice may be waived, in cases 
where the Comptroller determines that an emergency ex-
ists justifying such waiver, by unanimous action of the 
shareholders of the association or State bank’’ and insert-
ing ‘‘Publication of notice may be waived if the Comp-
troller determines that an emergency exists justifying such 
waiver or if the shareholders of the association or State
bank agree by unanimous action to waive the publication 
requirement for their respective institutions’’. 
SEC. 107. CAPITAL EQUIVALENCY DEPOSITS FOR FEDERAL 
BRANCHES 
AND 
AGENCIES 
OF 
FOREIGN 
BANKS. 
Section 4(g) of the International Banking Act of 
1978 (12 U.S.C. 3102(g)) is amended to read as follows: 
‘‘(g) CAPITAL EQUIVALENCY DEPOSIT.—
‘‘(1) IN
GENERAL.—Upon the opening of a 
Federal branch or agency of a foreign bank in any 
State and thereafter, the foreign bank, in addition to 
any deposit requirements imposed under section 6, 
shall keep on deposit, in accordance with such regu-
lations as the Comptroller of the Currency may pre-
scribe in accordance with paragraph (2), dollar de-
posits, investment securities, or other assets in such 
amounts as the Comptroller of the Currency deter-
mines to be necessary for the protection of deposi-
tors and other investors and to be consistent with 
the principles of safety and soundness. 
‘‘(2) LIMITATION.—Notwithstanding paragraph 
(1), regulations prescribed under such paragraph 
shall not permit a foreign bank to keep assets on de-
posit in an amount that is less than the amount re-
quired for a State licensed branch or agency of a
inserting after the item relating to section 5136B the fol-
lowing new item:
‘‘5136C. Alternative business organization.’’.
SEC. 111. CLARIFICATION OF THE MAIN PLACE OF BUSI-
NESS OF A NATIONAL BANK. 
Title LXII of the Revised Statutes of the United 
States is amended—
(1) in the paragraph designated the ‘‘Second’’ 
of section 5134 (12 U.S.C. 22), by striking ‘‘The 
place where its operation of discount and deposit are 
to be carried on’’ and inserting ‘‘The place where 
the main office of the national bank is, or is to be, 
located’’; and 
(2) in section 5190 (12 U.S.C. 81), by striking 
‘‘the place specified in its organization certificate’’ 
and inserting ‘‘the main office of the national bank’’.
TITLE II—SAVINGS ASSOCIATION 
PROVISIONS 
SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE 
SECURITIES EXCHANGE ACT OF 1934 AND 
THE INVESTMENT ADVISERS ACT OF 1940. 
(a) SECURITIES EXCHANGE ACT OF 1934.—
(1) DEFINITION OF BANK.—Section 3(a)(6) of 
the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(6)) is amended—
(A) in subparagraph (A), by inserting ‘‘or 
a Federal savings association, as defined in sec-
tion 2(5) of the Home Owners’ Loan Act’’ after 
‘‘a banking institution organized under the laws 
of the United States’’; and 
(B) in subparagraph (C)—
(i) by inserting ‘‘or savings associa-
tion as defined in section 2(4) of the Home 
Owners’ Loan Act,’’ after ‘‘banking insti-
tution,’’; and 
(ii) by inserting ‘‘or savings associa-
tions’’ after ‘‘having supervision over 
banks’’. 
(2) INCLUDE OTS UNDER THE DEFINITION OF 
APPROPRIATE REGULATORY AGENCY FOR CERTAIN 
PURPOSES.—Section 3(a)(34) of such Act (15 
U.S.C. 78c(a)(34)) is amended—
(A) in subparagraph (A)—
(i) in clause (ii), by striking ‘‘(i) or 
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’; 
(ii) by striking ‘‘and’’ at the end of 
clause (iii); 
(iii) by redesignating clause (iv) as 
clause (v); and
(iv) by inserting the following new 
clause after clause (iii): 
‘‘(iv) the Director of the Office of 
Thrift Supervision, in the case of a savings 
association (as defined in section 3(b) of 
the Federal Deposit Insurance Act (12 
U.S.C. 1813(b))) the deposits of which are 
insured by the Federal Deposit Insurance 
Corporation, a subsidiary or a department 
or division of any such savings association, 
or a savings and loan holding company; 
and’’;
(B) in subparagraph (B)—
(i) in clause (ii), by striking ‘‘(i) or 
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’; 
(ii) by striking ‘‘and’’ at the end of 
clause (iii); 
(iii) by redesignating clause (iv) as 
clause (v); and 
(iv) by inserting the following new 
clause after clause (iii): 
‘‘(iv) the Director of the Office of 
Thrift Supervision, in the case of a savings 
association (as defined in section 3(b) of 
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are 
insured by the Federal Deposit Insurance 
Corporation, or a subsidiary of any such 
savings association, or a savings and loan 
holding company; and’’; 
(C) in subparagraph (C)—
(i) in clause (ii), by striking ‘‘(i) or 
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’; 
(ii) by striking ‘‘and’’ at the end of 
clause (iii); 
(iii) by redesignating clause (iv) as 
clause (v); and 
(iv) by inserting the following new 
clause after clause (iii): 
‘‘(iv) the Director of the Office of 
Thrift Supervision, in the case of a savings 
association (as defined in section 3(b) of 
the Federal Deposit Insurance Act (12 
U.S.C. 1813(b))) the deposits of which are 
insured by the Federal Deposit Insurance 
Corporation, a savings and loan holding 
company, or a subsidiary of a savings and 
loan holding company when the appro-
priate regulatory agency for such clearing 
agency is not the Commission; and’’;
(D) in subparagraph (D)—
(i) by striking ‘‘and’’ at the end of 
clause (ii); 
(ii) by redesignating clause (iii) as 
clause (iv); and 
(iii) by inserting the following new 
clause after clause (ii): 
‘‘(iii) the Director of the Office of 
Thrift Supervision, in the case of a savings 
association (as defined in section 3(b) of 
the Federal Deposit Insurance Act (12 
U.S.C. 1813(b))) the deposits of which are 
insured by the Federal Deposit Insurance 
Corporation; and’’; 
(E) in subparagraph (F)—
(i) by redesignating clauses (ii), (iii), 
and (iv) as clauses (iii), (iv), and (v), re-
spectively; and 
(ii) by inserting the following new 
clause after clause (i): 
‘‘(ii) the Director of the Office of 
Thrift Supervision, in the case of a savings 
association (as defined in section 3(b) of 
the Federal Deposit Insurance Act (12 
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance 
Corporation; and’’; and 
(F) at the end of the last undesignated 
paragraph, by inserting the following new sen-
tence: ‘‘As used in this paragraph, the term 
‘savings and loan holding company’ has the 
meaning given it in section 10(a) of the Home 
Owners’ Loan Act (12 U.S.C. 1467a(a)).’’. 
(b) INVESTMENT ADVISERS ACT OF 1940.—
(1) DEFINITION OF BANK.—Section 202(a)(2) 
of the Investment Advisers Act of 1940 (15 U.S.C. 
80b–2(a)(2)) is amended—
(A) in subparagraph (A) by inserting ‘‘or 
a Federal savings association, as defined in sec-
tion 2(5) of the Home Owners’ Loan Act’’ after 
‘‘a banking institution organized under the laws 
of the United States’’; and 
(B) in subparagraph (C)—
(i) by inserting ‘‘, savings association 
as defined in section 2(4) of the Home 
Owners’ Loan Act,’’ after ‘‘banking insti-
tution’’; and 
(ii) by inserting ‘‘or savings associa-
tions’’ after ‘‘having supervision over 
banks’’.
(2) CONFORMING
AMENDMENTS.—Subsections 
(a)(1)(A)(i), (a)(1)(B), (a)(2), and (b) of section 
210A of such Act (15 U.S.C. 80b–10a), as added by 
section 220 of the Gramm-Leach-Bliley Act, are 
each amended by striking ‘‘bank holding company’’ 
each place it occurs and inserting ‘‘bank holding 
company or savings and loan holding company’’. 
(c) CONFORMING AMENDMENT TO THE INVESTMENT 
COMPANY ACT OF 1940.—Section 10(c) of the Investment 
Company Act of 1940 (15 U.S.C. 80a–10(c)), as amended 
by section 213(c) of the Gramm-Leach-Bliley Act, is 
amended by inserting after ‘‘1956)’’ the following: ‘‘or any 
one savings and loan holding company (together with its 
affiliates and subsidiaries) (as such terms are defined in 
section 10 of the Home Owners’ Loan Act)’’. 
SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA-
TIONS AUTHORIZED TO PROMOTE THE PUB-
LIC WELFARE. 
(a) IN GENERAL.—Section 5(c)(3) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding 
at the end the following new subparagraph: 
‘‘(E) DIRECT INVESTMENTS TO PROMOTE 
THE PUBLIC WELFARE.—
‘‘(i) IN GENERAL.—A Federal savings 
association may make investments de-
signed primarily to promote the public wel-
fare, including the welfare of low- and 
moderate-income communities or families 
through the provision of housing, services, 
and jobs. 
‘‘(ii) DIRECT INVESTMENTS OR ACQUI-
SITION
OF
INTEREST
IN
OTHER
COMPA-
NIES.—Investments under clause (i) may 
be made directly or by purchasing interests 
in an entity primarily engaged in making 
such investments. 
‘‘(iii) PROHIBITION ON UNLIMITED LI-
ABILITY.—No investment may be made 
under this subparagraph which would sub-
ject a Federal savings association to unlim-
ited liability to any person. 
‘‘(iv) SINGLE
INVESTMENT
LIMITA-
TION
TO
BE
ESTABLISHED
BY
DIREC-
TOR.—Subject to clauses (v) and (vi), the 
Director shall establish, by order or regula-
tion, limits on—
‘‘(I) the amount any savings as-
sociation may invest in any 1 project; 
and
‘‘(II) the aggregate amount of in-
vestment of any savings association 
under this subparagraph. 
‘‘(v) FLEXIBLE AGGREGATE INVEST-
MENT
LIMITATION.—The 
aggregate 
amount of investments of any savings asso-
ciation under this subparagraph may not 
exceed an amount equal to the sum of 5 
percent of the savings association’s capital 
stock actually paid in and unimpaired and 
5 percent of the savings association’s 
unimpaired surplus, unless—
‘‘(I) the Director determines that 
the savings association is adequately 
capitalized; and 
‘‘(II) the Federal Deposit Insur-
ance 
Corporation 
determines, 
by 
order, that the aggregate amount of 
investments in a higher amount than 
the limit under this clause will pose 
no significant risk to the affected de-
posit insurance fund. 
‘‘(vi) MAXIMUM AGGREGATE INVEST-
MENT
LIMITATION.—Notwithstanding 
clause (v), the aggregate amount of invest-
ments of any savings association under 
this subparagraph may not exceed an 
amount equal to the sum of 10 percent of 
the savings association’s capital stock actu-
ally paid in and unimpaired and 10 per-
cent 
of 
the 
savings 
association’s 
unimpaired surplus. 
‘‘(vii) INVESTMENTS NOT SUBJECT TO 
OTHER
LIMITATION
ON
QUALITY
OF
IN-
VESTMENTS.—No obligation a Federal sav-
ings association acquires or retains under 
this subparagraph shall be taken into ac-
count for purposes of the limitation con-
tained in section 28(d) of the Federal De-
posit Insurance Act on the acquisition and 
retention of any corporate debt security 
not of investment grade.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 5(c)(3)(A) of the Home Owners’ Loan Act (12 
U.S.C. 1464(c)(3)(A)) is amended to read as follows: 
‘‘(A) [Repealed.]’’.
SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL 
SAVINGS ASSOCIATIONS WITH NONDEPOSI-
TORY INSTITUTION AFFILIATES. 
Section 5(d)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1464(d)(3)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) MERGERS
AND
CONSOLIDATIONS 
WITH
NONDEPOSITORY
INSTITUTION
AFFILI-
ATES.—
‘‘(i) IN GENERAL.—Upon the approval 
of the Director, a Federal savings associa-
tion may merge with any nondepository in-
stitution affiliate of the savings associa-
tion. 
‘‘(ii) RULE
OF
CONSTRUCTION.—No 
provision of clause (i) shall be construed 
as—
‘‘(I) affecting the applicability of 
section 18(c) of the Federal Deposit 
Insurance Act; or 
‘‘(II) granting a Federal savings 
association any power or any author-
ity to engage in any activity that is
not authorized for a Federal savings 
association under any other provision 
of this Act or any other provision of 
law.’’. 
SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE-
QUIREMENT FOR SAVINGS ASSOCIATION SUB-
SIDIARIES OF SAVINGS AND LOAN HOLDING 
COMPANIES. 
Section 10(f) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(f)) is amended to read as follows: 
‘‘(f) DECLARATION
OF DIVIDEND.—The Director 
may—
‘‘(1) require a savings association that is a sub-
sidiary of a savings and loan holding company to 
give prior notice to the Director of the intent of the 
savings association to pay a dividend on its guar-
anty, permanent, or other nonwithdrawable stock; 
and 
‘‘(2) establish conditions on the payment of 
dividends by such a savings association.’’.
SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR 
TRUST OWNERSHIP OF SAVINGS ASSOCIA-
TIONS. 
(a) IN GENERAL.—Section 10(a)(1)(C) of the Home 
Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is amend-
ed—
(1) by striking ‘‘trust,’’ and inserting ‘‘business 
trust,’’; and 
(2) by inserting ‘‘or any other trust unless by 
its terms it must terminate within 25 years or not 
later than 21 years and 10 months after the death 
of individuals living on the effective date of the 
trust,’’ after ‘‘or similar organization,’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 10(a)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(a)(3)) is amended—
(1) by striking ‘‘does not include—’’ and all 
that follows through ‘‘any company by virtue’’ where 
such term appears in subparagraph (A) and insert-
ing ‘‘does not include any company by virtue’’; 
(2) by striking ‘‘; and’’ at the end of subpara-
graph (A) and inserting a period; and 
(3) by striking subparagraph (B).
SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING 
PURCHASED MORTGAGE SERVICING RIGHTS. 
Section 5(t) of the Home Owners’ Loan Act (12 
U.S.C. 1464(t)) is amended—
(1) by striking paragraph (4) and inserting the 
following new paragraph: 
‘‘(4) [Repealed.]’’; and 
(2) in paragraph (9)(A), by striking ‘‘intangible 
assets, plus’’ and all that follows through the period 
at the end and inserting ‘‘intangible assets.’’. 
SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL 
SAVINGS ASSOCIATIONS TO INVEST IN SMALL 
BUSINESS INVESTMENT COMPANIES. 
Subparagraph (D) of section 5(c)(4) of the Home 
Owners’ Loan Act (12 U.S.C. 1464(c)(4)) is amended to 
read as follows: 
‘‘(D) SMALL BUSINESS INVESTMENT COM-
PANIES.—Any Federal savings association may 
invest in 1 or more small business investment 
companies, or in any entity established to invest 
solely in small business investment companies 
formed under the Small Business Investment 
Act of 1958, except that the total amount of in-
vestments under this subparagraph may not at 
any time exceed the amount equal to 5 percent
of capital and surplus of the savings associa-
tion.’’. 
SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN 
AUTO LOANS. 
(a) IN GENERAL.—Section 5(c)(1) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)(1)) is amended by add-
ing at the end the following new subparagraph: 
‘‘(V) AUTO LOANS.—Loans and leases for 
motor vehicles acquired for personal, family, or 
household purposes.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING TO QUALIFIED THRIFT INVESTMENTS.—Section 
10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the 
end the following new subclause: 
‘‘(VIII) Loans and leases for 
motor vehicles acquired for personal, 
family, or household purposes.’’.
SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS. 
Section 15(h) of the Securities Exchange Act of 
1934 (15 U.S.C. 78o(h)) is amended by adding at 
the end the following new paragraph: 
‘‘(4) SELLING
AND
OFFERING
OF
DEPOSIT 
PRODUCTS.—No law, rule, regulation, or order, or 
other administrative action of any State or political
subdivision thereof shall directly or indirectly require 
any agent who represents 1 Federal savings associa-
tion (as such term is defined in section 2(5) of the 
Home Owners’ Loan Act (12 U.S.C. 1462(5)) in 
selling or offering deposit (as such term is defined 
in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(l)) products issued by such associa-
tion to qualify or register as a broker, dealer, associ-
ated person of a broker, or associated person of a 
dealer, or to qualify or register in any other similar 
status or capacity.’’. 
SEC. 210. FUNERAL- AND CEMETERY-RELATED FIDUCIARY 
SERVICES. 
Section 5(n) of the Home Owners’ Loan Act (12 
U.S.C. 1464(n)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(11) FUNERAL- AND CEMETERY-RELATED FI-
DUCIARY SERVICES.—
‘‘(A) IN GENERAL.—A funeral director or 
cemetery operator, when acting in such capac-
ity, (or any other person in connection with a 
contract or other agreement with a funeral di-
rector or cemetery operator) may engage any 
Federal savings association, regardless of where 
the association is located, to act in any fidu-
ciary capacity in which the savings association 
has the right to act in accordance with this sec-
tion, including holding funds deposited in trust 
or escrow by the funeral director or cemetery 
operator (or by such other party), and the sav-
ings association may act in such fiduciary ca-
pacity on behalf of the funeral director or ceme-
tery operator (or such other person). 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) CEMETERY.—The term ‘ceme-
tery’ means any land or structure used, or 
intended to be used, for the internment of 
human remains in any form. 
‘‘(ii) 
CEMETERY
OPERATOR.—The 
term ‘cemetery operator’ means any person 
who contracts or accepts payment for mer-
chandise, endowment, or perpetual care 
services in connection with a cemetery. 
‘‘(iii) FUNERAL DIRECTOR.—The term 
‘funeral director’ means any person who 
contracts or accepts payment to provide or 
arrange—
‘‘(I) services for the final disposi-
tion of human remains; or
‘‘(II) funeral services, property, 
or merchandise (including cemetery 
services, property, or merchandise).’’. 
SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER RE-
QUIREMENT 
WITH 
RESPECT 
TO 
OUT-OF-
STATE BRANCHES. 
Section 5(r)(1) of the Home Owners’ Loan Act (12 
U.S.C. 1464(r)(1)) is amended by striking the ultimate 
sentence.
SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL 
LOANS. 
(a) ELIMINATION
OF LENDING LIMIT
ON SMALL 
BUSINESS LOANS.—Section 5(c)(1) of the Home Owners’ 
Loan Act (12 U.S.C. 1464(c)(1)) is amended by inserting 
after subparagraph (V) (as added by section 208 of this 
title) the following new subparagraph: 
‘‘(W) SMALL
BUSINESS
LOANS.—Small 
business loans, as defined in regulations which 
the Director shall prescribe.’’
(b) INCREASE IN LENDING LIMIT ON OTHER BUSI-
NESS LOANS.—Section 5(c)(2)(A) of the Home Owners’ 
Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by strik-
ing ‘‘, and amounts in excess of 10 percent’’ and all that 
follows through ‘‘by the Director’’.
SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 
ASSOCIATIONS FOR FEDERAL COURT JURIS-
DICTION. 
Section 5 of the Home Owners’ Loan Act (12 U.S.C. 
1464) is amended by adding at the end the following new 
subsection: 
‘‘(x) HOME STATE CITIZENSHIP.—In determining 
whether a Federal court has diversity jurisdiction over a 
case in which a Federal savings association is a party, the 
Federal savings association shall be considered to be a cit-
izen only of the State in which such savings association 
has its main office.’’. 
SEC. 214. CLARIFICATION OF APPLICABILITY OF CERTAIN 
PROCEDURAL DOCTRINES. 
Section 11A(d) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821a(d)) is amended—
(1) by striking ‘‘LEGAL PROCEEDINGS.—Any 
judgment’’ and inserting ‘‘LEGAL PROCEEDINGS.—
‘‘(1) IN GENERAL.—Any judgment’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) CLARIFICATION
OF
APPLICABILITY
OF 
CERTAIN
PROCEDURAL
DOCTRINES.—In any pro-
ceeding seeking a monetary recovery against the 
United States, or an agency or official thereof, based 
upon actions of the Federal Savings and Loan In-
surance Corporation prior to its dissolution, or the 
Federal Home Loan Bank Board prior to its dis-
solution, and arising from the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 or 
its implementation, and where any monetary recov-
ery in such proceeding would be paid from the 
FSLIC Resolution Fund or any supplements there-
to, neither the United States Court of Federal 
Claims, the United States Court of Appeals for the 
Federal Circuit, nor any other court of competent 
jurisdiction shall dismiss, or affirm on appeal the 
dismissal of, the claims of any party seeking such 
monetary recovery, on the basis of res judicata, col-
lateral estoppel, or any similar doctrine, defense, or 
rule of law, based upon any decision, opinion, or 
order of judgment entered by any court prior to July 
1, 1996. Unless some other defense is applicable, in 
any such proceeding, the United States Court of 
Federal Claims, the United States Court of Appeals 
for the Federal Circuit, and any other court of com-
petent jurisdiction shall review the merits of the 
claims of the party seeking such monetary relief and 
shall enter judgment accordingly.’’.
TITLE III—CREDIT UNION 
PROVISIONS 
SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR-
IZED TO BECOME MEMBERS OF A FEDERAL 
HOME LOAN BANK. 
(a) IN GENERAL.—Section 4(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 
at the end the following new paragraph: 
‘‘(5) CERTAIN
PRIVATELY
INSURED
CREDIT 
UNIONS.—
‘‘(A) IN GENERAL.—A credit union which 
has been determined, in accordance with section 
43(e)(1) of the Federal Deposit Insurance Act 
and subject to the requirements of subpara-
graph (B), to meet all eligibility requirements 
for Federal deposit insurance shall be treated 
as an insured depository institution for pur-
poses of determining the eligibility of such cred-
it union for membership in a Federal home loan 
bank under paragraphs (1), (2), and (3). 
‘‘(B) CERTIFICATION BY APPROPRIATE SU-
PERVISOR.—
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph and subject to clause (ii), a 
credit union which lacks Federal deposit
insurance and which has applied for mem-
bership in a Federal home loan bank may 
be treated as meeting all the eligibility re-
quirements for Federal deposit insurance 
only if the appropriate supervisor of the 
State in which the credit union is char-
tered has determined that the credit union 
meets all the eligibility requirements for 
Federal deposit insurance as of the date of 
the application for membership. 
‘‘(ii) 
CERTIFICATION
DEEMED 
VALID.—If, in the case of any credit union 
to which clause (i) applies, the appropriate 
supervisor of the State in which such cred-
it union is chartered fails to make a deter-
mination pursuant to such clause by the 
end of the 6-month period beginning on 
the date of the application, the credit 
union shall be deemed to have met the re-
quirements of clause (i). 
‘‘(C) SECURITY INTERESTS OF FEDERAL 
HOME LOAN BANK NOT AVOIDABLE.—Notwith-
standing any provision of State law authorizing 
a conservator or liquidating agent of a credit
union to repudiate contracts, no such provision 
shall apply with respect to—
‘‘(i) any extension of credit from any 
Federal home loan bank to any credit 
union which is a member of any such bank 
pursuant to this paragraph; or 
‘‘(ii) any security interest in the as-
sets of such credit union securing any such 
extension of credit.’’. 
(b) COPIES OF AUDITS OF PRIVATE INSURERS OF 
CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE 
PROVIDED
TO
SUPERVISORY
AGENCIES.—Section 
43(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1831t(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A)(i); 
(2) by striking the period at the end of clause 
(ii) of subparagraph (A) and inserting a semicolon; 
(3) by inserting the following new clauses at the 
end of subparagraph (A): 
‘‘(iii) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the pri-
vate insurer, the National Credit Union
Administration, not later than 7 days after 
that audit is completed; and 
‘‘(iv) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the pri-
vate insurer which are members of a Fed-
eral home loan bank, the Federal Housing 
Finance Board, not later than 7 days after 
that audit is completed.’’; and 
(4) by adding at the end of such section 
43(a)(2) the following new subparagraph: 
‘‘(C) CONSULTATION.—The appropriate 
supervisory agency of each State in which a pri-
vate deposit insurer insures deposits in an insti-
tution described in subsection (f)(2)(A) which—
‘‘(i) lacks Federal deposit insurance; 
and 
‘‘(ii) has become a member of a Fed-
eral home loan bank, 
shall provide the National Credit Union Admin-
istration, upon request, with the results of any 
examination and reports related thereto con-
cerning the private deposit insurer to which 
such agency may have in its possession.’’.
SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR 
CREDIT UNIONS. 
(a) IN GENERAL.—Section 124 of the Federal Credit 
Union Act (12 U.S.C. 1770) is amended—
(1) by striking ‘‘Upon application by any credit 
union’’ and inserting ‘‘Notwithstanding any other 
provision of law, upon application by any credit 
union’’; 
(2) by inserting ‘‘on lands reserved for the use 
of, and under the exclusive or concurrent jurisdiction 
of, the United States or’’ after ‘‘officer or agency of 
the United States charged with the allotment of 
space’’; 
(3) by inserting ‘‘lease land or’’ after ‘‘such of-
ficer or agency may in his or its discretion’’; and 
(4) by inserting ‘‘or the facility built on the 
lease land’’ after ‘‘credit union to be served by the 
allotment of space’’. 
(b) CLERICAL AMENDMENT.—The heading for sec-
tion 124 is amended by inserting ‘‘OR FEDERAL LAND’’ 
after ‘‘BUILDINGS’’. 
SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED-
IT UNIONS. 
Section 107 of the Federal Credit Union Act (12 
U.S.C. 1757) is amended—
(1) in the matter preceding paragraph (1) by 
striking ‘‘A Federal credit union’’ and inserting ‘‘(a) 
IN GENERAL.—Any Federal credit union’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) INVESTMENT FOR THE CREDIT UNION’S OWN 
ACCOUNT.—
‘‘(1) IN GENERAL.—A Federal credit union may 
purchase and hold for its own account such invest-
ment securities of investment grade as the Board 
may authorize by regulation, subject to such limita-
tions and restrictions as the Board may prescribe in 
the regulations. 
‘‘(2) PERCENTAGE LIMITATIONS.—
‘‘(A) SINGLE OBLIGOR.—In no event may 
the total amount of investment securities of any 
single obligor or maker held by a Federal credit 
union for the credit union’s own account exceed 
at any time an amount equal to 10 percent of 
the net worth of the credit union. 
‘‘(B) AGGREGATE
INVESTMENTS.—In no 
event may the aggregate amount of investment 
securities held by a Federal credit union for the 
credit union’s own account exceed at any time
an amount equal to 10 percent of the assets of 
the credit union. 
‘‘(3) INVESTMENT SECURITY DEFINED.—
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘investment security’ 
means marketable obligations evidencing the in-
debtedness of any person in the form of bonds, 
notes, or debentures and other instruments 
commonly referred to as investment securities. 
‘‘(B) FURTHER DEFINITION BY BOARD.—
The Board may further define the term ‘invest-
ment security’. 
‘‘(4) INVESTMENT GRADE DEFINED.—The term 
‘investment grade’ means with respect to an invest-
ment security purchased by a credit union for its 
own account, an investment security that at the time 
of such purchase is rated in one of the 4 highest rat-
ing categories by at least 1 nationally recognized 
statistical rating organization. 
‘‘(5) CLARIFICATION
OF
PROHIBITION
ON 
STOCK
OWNERSHIP.—No provision of this sub-
section shall be construed as authorizing a Federal 
credit union to purchase shares of stock of any cor-
poration for the credit union’s own account, except 
as otherwise permitted by law.’’.
SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF 
TERM OF FEDERAL CREDIT UNION LOANS TO 
15 YEARS. 
Section 107(a)(5) of the Federal Credit Union Act 
(12 U.S.C. 1757(5)) (as so designated by section 303 of 
this title) is amended—
(1) in the matter preceding subparagraph (A), 
by striking ‘‘to make loans, the maturities of which 
shall not exceed twelve years except as otherwise 
provided herein’’ and inserting ‘‘to make loans, the 
maturities of which shall not exceed 15 years or any 
longer maturity as the Board may allow, in regula-
tions, except as otherwise provided in this Act’’; 
(2) in subparagraph (A)—
(A) by striking clause (ii); 
(B) by redesignating clauses (iii) through 
(x) as clauses (ii) through (ix), respectively; and 
(C) by inserting ‘‘and’’ after the semicolon 
at the end of clause (viii) (as so redesignated). 
SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN 
CREDIT UNION SERVICE ORGANIZATIONS. 
Section 107(a)(7)(I) of the Federal Credit Union Act 
(12 U.S.C. 1757(7)(I)) (as so designated by section 303 
of this title) is amended by striking ‘‘up to 1 per centum 
of the total paid’’ and inserting ‘‘up to 3 percent of the 
total paid’’.
SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS 
TO NONPROFIT RELIGIOUS ORGANIZATIONS. 
Section 107A(a) of the Federal Credit Union Act (12 
U.S.C. 1757a(a)) is amended by inserting ‘‘, excluding 
loans made to nonprofit religious organizations,’’ after 
‘‘total amount of such loans’’.
SEC. 307. CHECK CASHING AND MONEY TRANSFER SERV-
ICES OFFERED WITHIN THE FIELD OF MEM-
BERSHIP. 
Paragraph (12) of section 107(a) of the Federal 
Credit Union Act (12 U.S.C. 1757(12)) (as so designated 
by section 303 of this title) is amended to read as follows: 
‘‘(12) in accordance with regulations prescribed 
by the Board—
‘‘(A) to sell, to persons in the field of 
membership, negotiable checks (including trav-
elers checks), money orders, and other similar 
money transfer instruments (including elec-
tronic fund transfers); and 
‘‘(B) to cash checks and money orders and 
receive electronic fund transfers for persons in 
the field of membership for a fee;’’.
SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE 
COMMON-BOND CREDIT UNIONS. 
Section 109(d)(2) of the Federal Credit Union Act 
(12 U.S.C. 1759(d)(2) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii) of 
subparagraph (B); 
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) a merger involving any such Federal 
credit union approved by the Board on or after 
August 7, 1998.’’. 
SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CRED-
IT UNIONS. 
Section 109(g) of the Federal Credit Union Act (12 
U.S.C. 1759(g)) is amended by inserting after paragraph 
(2) the following new paragraph: 
‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP 
OF CERTAIN MEMBER GROUPS IN COMMUNITY CHAR-
TER CONVERSIONS.—In the case of a voluntary con-
version of a common-bond credit union described in 
paragraph (1) or (2) of subsection (b) into a com-
munity credit union described in subsection (b)(3), 
the Board shall prescribe, by regulation, the criteria 
under which the Board may determine that a mem-
ber group or other portion of a credit union’s exist-
ing membership, that is located outside the well-de-
fined local community, neighborhood, or rural dis-
trict that shall constitute the community charter, 
can be satisfactorily served by the credit union and 
remain within the community credit union’s field of 
membership.’’. 
SEC. 310. CREDIT UNION GOVERNANCE. 
(a) EXPULSION OF MEMBERS FOR JUST CAUSE.—
Subsection (b) of section 118 of the Federal Credit Union 
Act (12 U.S.C. 1764(b)) is amended to read as follows: 
‘‘(b) POLICY AND ACTIONS OF BOARDS OF DIREC-
TORS OF FEDERAL CREDIT UNIONS.—
‘‘(1) EXPULSION
OF
MEMBERS
FOR
NON-
PARTICIPATION OR FOR JUST CAUSE.—The board of 
directors of a Federal credit union may, by majority 
vote of a quorum of directors, adopt and enforce a 
policy with respect to expulsion from membership, 
by a majority vote of such board of directors, based 
on just cause, including disruption of credit union 
operations, or on nonparticipation by a member in 
the affairs of the credit union. 
‘‘(2) WRITTEN
NOTICE
OF
POLICY
TO
MEM-
BERS.—If a policy described in paragraph (1) is 
adopted, written notice of the policy as adopted and 
the effective date of such policy shall be provided 
to—
‘‘(A) each existing member of the credit 
union not less than 30 days prior to the effec-
tive date of such policy; and 
‘‘(B) each new member prior to or upon 
applying for membership.’’. 
(b) TERM LIMITS AUTHORIZED FOR BOARD MEM-
BERS OF FEDERAL CREDIT UNIONS.—Section 111(a) of 
the Federal Credit Union Act (12 U.S.C. 1761(a)) is 
amended by adding at the end the following new sentence: 
‘‘The bylaws of a Federal credit union may limit the num-
ber of consecutive terms any person may serve on the 
board of directors of such credit union.’’. 
(c) REIMBURSEMENT FOR LOST WAGES DUE TO 
SERVICE ON CREDIT UNION BOARD NOT TREATED AS 
COMPENSATION.—Section 111(c) of the Federal Credit 
Union Act (12 U.S.C. 1761(c)) is amended by inserting 
‘‘, including lost wages,’’ after ‘‘the reimbursement of rea-
sonable expenses’’. 
SEC. 311. PROVIDING THE NATIONAL CREDIT UNION AD-
MINISTRATION WITH GREATER FLEXIBILITY 
IN RESPONDING TO MARKET CONDITIONS. 
Section 107(a)(5)(A)(vi)(I) of the Federal Credit 
Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated 
by section 303 of this title) is amended by striking ‘‘six-
month period and that prevailing interest rate levels’’ and
inserting ‘‘6-month period or that prevailing interest rate 
levels’’. 
SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION 
REQUIREMENT OF THE CLAYTON ACT. 
Section 7A(c)(7) of the Clayton Act (15 U.S.C. 
18a(c)(7)) is amended by inserting ‘‘205(b)(3) of the Fed-
eral Credit Union Act (12 U.S.C. 1785(b)(3),’’ before ‘‘or 
section 3’’. 
SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY 
INSTITUTIONS UNDER SECURITIES LAWS. 
(a) DEFINITION OF BANK UNDER THE SECURITIES 
EXCHANGE ACT OF 1934.—Section 3(a)(6) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) (as 
amended by section 201(a)(1) of this Act) is amended—
(1) by striking ‘‘this title, and (D) a receiver’’ 
and inserting ‘‘this title, (D) an insured credit union 
(as defined in section 101(7) of the Federal Credit 
Union Act) but only for purposes of paragraphs (4) 
and (5) of this subsection and only for activities oth-
erwise authorized by applicable laws to which such 
credit unions are subject, and (E) a receiver’’; and 
(2) in subparagraph (E) (as so redesignated by 
paragraph (1) of this subsection) by striking ‘‘(A), 
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’.
(b) DEFINITION OF BANK UNDER THE INVESTMENT 
ADVISERS ACT OF 1940.—Section 202(a)(2) of the In-
vestment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) 
(as amended by section 201(b)(1) of this Act) is amend-
ed—
(1) by striking ‘‘this title, and (D) a receiver’’ 
and inserting ‘‘this title, (D) an insured credit union 
(as defined in section 101(7) of the Federal Credit 
Union Act) but only for activities otherwise author-
ized by applicable laws to which such credit unions 
are subject, and (E) a receiver’’; and 
(2) in subparagraph (E) (as so redesignated by 
paragraph (1) of this subsection) by striking ‘‘(A), 
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’. 
(c) DEFINITION OF APPROPRIATE FEDERAL BANK-
ING AGENCY.—Section 210A(c) of the Investment Advis-
ers Act of 1940 (15 U.S.C. 80b–10a(c)) (as amended by 
section 201(c) of this Act) is amended by inserting ‘‘and 
includes the National Credit Union Administration Board, 
in the case of an insured credit union (as defined in sec-
tion 101(7) of the Federal Credit Union Act)’’ before the 
period at the end.
TITLE IV—DEPOSITORY 
INSTITUTION PROVISIONS 
SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCH-
ING AND MERGERS. 
(a) DE NOVO INTERSTATE BRANCHES OF NATIONAL 
BANKS.—
(1) IN GENERAL.—Section 5155(g)(1) of the 
Revised Statutes of the United States (12 U.S.C. 
36(g)(1)) is amended by striking ‘‘maintain a 
branch if—’’ and all that follows through the end of 
subparagraph (B) and inserting ‘‘maintain a 
branch.’’. 
(2) CLERICAL AMENDMENT.—The heading for 
subsection (g) of section 5155 of the Revised Stat-
utes of the United States is amended by striking 
‘‘STATE ‘OPT-IN’ ELECTION TO PERMIT’’. 
(b) DE NOVO INTERSTATE BRANCHES OF STATE 
NONMEMBER BANKS.—
(1) IN GENERAL.—Section 18(d)(4)(A) of the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1828(d)(4)(A)) is amended by striking ‘‘maintain a 
branch if—’’ and all that follows through the end of 
clause (ii) and inserting ‘‘maintain a branch.’’. 
(2) CLERICAL AMENDMENT.—The heading for 
paragraph (4) of section 18(d) of the Federal De-
posit Insurance Act is amended by striking ‘‘STATE 
‘OPT-IN’ ELECTION TO PERMIT INTERSTATE’’ and in-
serting ‘‘INTERSTATE’’. 
(c) DE NOVO INTERSTATE BRANCHES OF STATE 
MEMBER BANKS.—The 3rd undesignated paragraph of 
section 9 of the Federal Reserve Act (12 U.S.C. 321) is 
amended by adding at the end the following new sen-
tences: ‘‘A State member bank may establish and operate 
a de novo branch in a host State (as such terms are de-
fined in section 18(d) of the Federal Deposit Insurance 
Act) on the same terms and conditions and subject to the 
same limitations and restrictions as are applicable to the 
establishment of a de novo branch of a national bank in 
a host State under section 5155(g) of the Revised Statutes 
of the United States. Such section 5155(g) shall be ap-
plied for purposes of the preceding sentence by sub-
stituting ‘Board of Governors of the Federal Reserve Sys-
tem’ for ‘Comptroller of the Currency’ and ‘State member 
bank’ for ‘national bank’.’’. 
(d) INTERSTATE MERGER OF BANKS.—
(1) MERGER OF INSURED BANK WITH ANOTHER 
DEPOSITORY
INSTITUTION
OR
TRUST
COMPANY.—
Section 44(a)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831u(a)(1)) is amended—
(A) by striking ‘‘Beginning on June 1, 
1997, the’’ and inserting ‘‘The’’; and 
(B) by striking ‘‘insured banks with dif-
ferent home States’’ and inserting ‘‘an insured 
bank and another insured depository institution 
or trust company with a different home State 
than the resulting insured bank’’. 
(2) NATIONAL BANK TRUST COMPANY MERGER 
WITH OTHER TRUST COMPANY.—Subsection (b) of 
section 4 of the National Bank Consolidation and 
Merger Act (12 U.S.C. 215a–1(b)) is amended to 
read as follows: 
‘‘(b) MERGER OF NATIONAL BANK TRUST COMPANY 
WITH ANOTHER TRUST COMPANY.—A national bank that 
is a trust company may engage in a consolidation or merg-
er under this Act with any trust company with a different 
home State, under the same terms and conditions that 
would apply if the trust companies were located within the 
same State.’’. 
(e) INTERSTATE
FIDUCIARY
ACTIVITY.—Section 
18(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(d)) is amended by adding at the end the following 
new paragraph: 
‘‘(5) INTERSTATE FIDUCIARY ACTIVITY.—
‘‘(A) AUTHORITY OF STATE BANK SUPER-
VISOR.—The State bank supervisor of a State 
bank may approve an application by the State 
bank, when not in contravention of home State 
or host State law, to act as trustee, executor, 
administrator, registrar of stocks and bonds, 
guardian of estates, assignee, receiver, com-
mittee of estates of lunatics, or in any other fi-
duciary capacity in a host State in which State 
banks or other corporations which come into 
competition with national banks are permitted 
to act under the laws of such host State. 
‘‘(B) NONCONTRAVENTION OF HOST STATE 
LAW.—Whenever the laws of a host State au-
thorize or permit the exercise of any or all of 
the foregoing powers by State banks or other 
corporations which compete with national 
banks, the granting to and the exercise of such 
powers by a State bank as provided in this 
paragraph shall not be deemed to be in con-
travention of host State law within the meaning 
of this paragraph. 
‘‘(C) STATE BANK INCLUDES TRUST COM-
PANIES.—For purposes of this paragraph, the
term ‘State bank’ includes any State-chartered 
trust company (as defined in section 44(g)). 
‘‘(D) OTHER DEFINITIONS.—For purposes 
of this paragraph, the term ‘home State’ and 
‘host State’ have the meanings given such 
terms in section 44.’’. 
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 44 of the Federal Deposit Insurance 
Act (12 U.S.C. 1831u) is amended—
(A) in subsection (a)—
(i) by striking paragraph (4) and in-
serting the following new paragraph: 
‘‘(4) TREATMENT OF BRANCHES IN CONNEC-
TION WITH CERTAIN INTERSTATE MERGER TRANS-
ACTIONS.—In the case of an interstate merger 
transaction which involves the acquisition of a 
branch of an insured depository institution or trust 
company without the acquisition of the insured de-
pository institution or trust company, the branch 
shall be treated, for purposes of this section, as an 
insured depository institution or trust company the 
home State of which is the State in which the 
branch is located.’’; and 
(ii) by striking paragraphs (5) and 
(6);
(B) in subsection (b)—
(i) by striking ‘‘bank’’ each place such 
term appears in paragraph (2)(B)(i) and 
inserting ‘‘insured depository institution’’; 
(ii) by striking ‘‘banks’’ where such 
term appears in paragraph (2)(E) and in-
serting ‘‘insured depository institutions or 
trust companies’’; 
(iii) by striking ‘‘bank affiliate’’ each 
place such term appears in that portion of 
paragraph (3) that precedes subparagraph 
(A) and inserting ‘‘insured depository insti-
tution affiliate’’; 
(iv) by striking ‘‘any bank’’ where 
such term appears in paragraph (3)(B) 
and inserting ‘‘any insured depository in-
stitution’’; 
(v) by striking ‘‘bank’’ where such 
term appears in paragraph (4)(A) and in-
serting ‘‘insured depository institution and 
trust company’’; and 
(vi) by striking ‘‘all banks’’ where 
such term appears in paragraph (5) and 
inserting ‘‘all insured depository institu-
tions and trust companies’’;
(C) in subsection (d)(1), by striking ‘‘any 
bank’’ and inserting ‘‘any insured depository in-
stitution or trust company’’; 
(D) in subsection (e)—
(i) by striking ‘‘1 or more banks’’ and 
inserting ‘‘1 or more insured depository in-
stitutions’’; and 
(ii) by striking ‘‘paragraph (2), (4), or 
(5)’’ and inserting ‘‘paragraph (2)’’; 
(E) by striking clauses (i) and (ii) of sub-
section (g)(4)(A) and inserting the following 
new clauses: 
‘‘(i) with respect to a national bank or 
Federal savings association, the State in 
which the main office of the bank or sav-
ings association is located; and 
‘‘(ii) with respect to a State bank, 
State savings association, or State-char-
tered trust company, the State by which 
the bank, savings association, or trust 
company is chartered; and’’; 
(F) by striking paragraph (5) of subsection 
(g) and inserting the following new paragraph: 
‘‘(5) HOST
STATE.—The term ‘host State’ 
means—
‘‘(A) with respect to an insured depository 
institution, a State, other than the home State 
of the depository institution, in which the de-
pository institution maintains, or seeks to es-
tablish and maintain, a branch; and 
‘‘(B) with respect to a trust company, a 
State, other than the home State of the trust 
company, in which the trust company acts, or 
seeks to act, in 1 or more fiduciary capacities.’’; 
(G) in subsection (g)(10), by striking ‘‘sec-
tion 18(c)(2)’’ and inserting ‘‘paragraph (1) or 
(2) of section 18(c), as appropriate,’’; and 
(H) in subsection (g), by adding at the end 
the following new paragraph: 
‘‘(12) TRUST COMPANY.—The term ‘trust com-
pany’ means—
‘‘(A) any national bank; 
‘‘(B) any savings association; and 
‘‘(C) any bank, banking association, trust 
company, savings bank, or other banking insti-
tution which is incorporated under the laws of 
any State, 
that is authorized to act in 1 or more fiduciary ca-
pacities but is not in the business of receiving depos-
its other than trust funds (as defined in section 
3(p)).’’. 
(2) Section 3(d) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1842(d)) is amended—
(A) in paragraph (1)—
(i) by striking subparagraphs (B) and 
(C); and 
(ii) by redesignating subparagraph 
(D) as subparagraph (B); and 
(B) in paragraph (5), by striking ‘‘sub-
paragraph (B) or (D)’’ and inserting ‘‘subpara-
graph (B)’’. 
(3) Subsection (c) of section 4 of the National 
Bank Consolidation and Merger Act (12 U.S.C. 
215a–1(c)) is amended to read as follows: 
‘‘(c) DEFINITIONS.—For purposes of this section, the 
terms ‘home State’, ‘out-of-State bank’, and ‘trust com-
pany’ each have the same meaning as in section 44(g) of 
the Federal Deposit Insurance Act.’’. 
(g) CLERICAL AMENDMENTS.—
(1) The heading for section 44(b)(2)(E) of the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1831u(b)(2)(E)) is amended by striking ‘‘BANKS’’ 
and inserting ‘‘INSURED DEPOSITORY INSTITUTIONS 
AND TRUST COMPANIES’’.
(2) The heading for section 44(e) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831u(e)) is 
amended by striking ‘‘BANKS’’ and inserting ‘‘IN-
SURED DEPOSITORY INSTITUTIONS’’. 
SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW 
OF APPOINTMENT OF A RECEIVER FOR DE-
POSITORY INSTITUTIONS. 
(a) NATIONAL BANKS.—Section 2 of the National 
Bank Receivership Act (12 U.S.C. 191) is amended—
(1) by striking ‘‘SECTION 2. The Comptroller of 
the Currency’’ and inserting the following: 
‘‘SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL 
BANK. 
‘‘(a) IN GENERAL.—The Comptroller of the Cur-
rency’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) JUDICIAL REVIEW.—If the Comptroller of the 
Currency appoints a receiver under subsection (a), the na-
tional bank may, within 30 days thereafter, bring an ac-
tion in the United States district court for the judicial dis-
trict in which the home office of such bank is located, or 
in the United States District Court for the District of Co-
lumbia, for an order requiring the Comptroller of the Cur-
rency to remove the receiver, and the court shall, upon
the merits, dismiss such action or direct the Comptroller 
of the Currency to remove the receiver.’’. 
(b) INSURED DEPOSITORY INSTITUTIONS.—Section 
11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(c)(7)) is amended to read as follows: 
‘‘(7) JUDICIAL REVIEW.—If the Corporation is 
appointed (including the appointment of the Cor-
poration as receiver by the Board of Directors) as 
conservator or receiver of a depository institution 
under paragraph (4), (9), or (10), the depository in-
stitution may, within 30 days thereafter, bring an 
action in the United States district court for the ju-
dicial district in which the home office of such de-
pository institution is located, or in the United 
States District Court for the District of Columbia, 
for an order requiring the Corporation to be re-
moved as the conservator or receiver (regardless of 
how such appointment was made), and the court 
shall, upon the merits, dismiss such action or direct 
the Corporation to be removed as the conservator or 
receiver.’’. 
(c) EXPANSION OF PERIOD FOR CHALLENGING THE 
APPOINTMENT
OF
A LIQUIDATING AGENT.—Subpara-
graph (B) of section 207(a)(1) of the Federal Credit
Union Act (12 U.S.C. 1787(a)(1)) is amended by striking 
‘‘10 days’’ and inserting ‘‘30 days’’. 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a), (b), and (c) shall apply with respect to 
conservators, receivers, or liquidating agents appointed on 
or after the date of the enactment of this Act. 
SEC. 403. REPORTING REQUIREMENTS RELATING TO IN-
SIDER LENDING. 
(a) REPORTING REQUIREMENTS REGARDING LOANS 
TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section 
22(g) of the Federal Reserve Act (12 U.S.C. 375a) is 
amended—
(1) by striking paragraphs (6) and (9); and 
(2) by redesignating paragraphs (7), (8), and 
(10) as paragraphs (6), (7), and (8), respectively. 
(b) REPORTING REQUIREMENTS REGARDING LOANS 
FROM CORRESPONDENT BANKS TO EXECUTIVE OFFI-
CERS AND SHAREHOLDERS OF INSURED BANKS.—Section 
106(b)(2) of the Bank Holding Company Act Amend-
ments of 1970 (12 U.S.C. 1972(2)) is amended—
(1) by striking subparagraph (G); and 
(2) by redesignating subparagraphs (H) and (I) 
as subparagraphs (G) and (H), respectively.
SEC. 404. AMENDMENT TO PROVIDE AN INFLATION AD-
JUSTMENT FOR THE SMALL DEPOSITORY IN-
STITUTION EXCEPTION UNDER THE DEPOSI-
TORY 
INSTITUTION 
MANAGEMENT 
INTER-
LOCKS ACT. 
Section 203(1) of the Depository Institution Manage-
ment Interlocks Act (12 U.S.C. 3202(1)) is amended by 
striking ‘‘$20,000,000’’ and inserting ‘‘$100,000,000’’. 
SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF IN-
SURED DEPOSITORY INSTITUTIONS. 
(a) CLARIFICATION RELATING TO THE ENFORCE-
ABILITY OF AGREEMENTS AND CONDITIONS.—The Fed-
eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended by adding at the end the following new section: 
‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS. 
‘‘(a) IN GENERAL.—Notwithstanding clause (i) or 
(ii) of section 8(b)(6)(A) or section 38(e)(2)(E), an appro-
priate Federal banking agency may enforce, under section 
8, the terms of—
‘‘(1) any condition imposed in writing by the 
agency on a depository institution or an institution-
affiliated party (including a bank holding company) 
in connection with any action on any application, no-
tice, or other request concerning a depository insti-
tution; or
‘‘(2) any written agreement entered into be-
tween the agency and an institution-affiliated party 
(including a bank holding company). 
‘‘(b) RECEIVERSHIPS
AND CONSERVATORSHIPS.—
After the appointment of the Corporation as the receiver 
or conservator for any insured depository institution, the 
Corporation may enforce any condition or agreement de-
scribed in paragraph (1) or (2) of subsection (a) involving 
such institution or any institution-affiliated party (includ-
ing a bank holding company), through an action brought 
in an appropriate United States district court.’’. 
(b) PROTECTION OF CAPITAL OF INSURED DEPOSI-
TORY INSTITUTIONS.—Paragraph (1) of section 18(u) of 
the Federal Deposit Insurance Act (12 U.S.C. 1828(u)) 
is amended by striking subparagraph (B) and by redesig-
nating subparagraph (C) as subparagraph (B). 
SEC. 406. INVESTMENTS BY INSURED SAVINGS ASSOCIA-
TIONS IN BANK SERVICE COMPANIES AU-
THORIZED. 
(a) IN GENERAL.—Sections 2 and 3 of the Bank 
Service Company Act (12 U.S.C. 1862, 1863) are each 
amended by striking ‘‘insured bank’’ each place such term 
appears and inserting ‘‘insured depository institution’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 1(b)(4) of the Bank Service Com-
pany Act (12 U.S.C. 1861(b)(4)) is amended—
(A) by inserting ‘‘, except when such term 
appears in connection with the term ‘insured 
depository institution’,’’ after ‘‘means’’; and 
(B) by striking ‘‘Federal Home Loan Bank 
Board’’ and inserting ‘‘Director of the Office of 
Thrift Supervision’’. 
(2) Section 1(b) of the Bank Service Company 
Act (12 U.S.C. 1861(b)) is amended—
(A) by striking paragraph (5) and insert-
ing the following new paragraph: 
‘‘(5) INSURED DEPOSITORY INSTITUTION.—The 
term ‘insured depository institution’ has the mean-
ing given the term in section 3(c) of the Federal De-
posit Insurance Act;’’; 
(B) by striking ‘‘and’’ at the end of para-
graph (7); 
(C) by striking the period at the end of 
paragraph (8) and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(9) the terms ‘State depository institution’, 
‘Federal depository institution’, ‘State savings asso-
ciation’ and ‘Federal savings association’ have the
meanings given the terms in section 3 of the Federal 
Deposit Insurance Act.’’. 
(3) The 1st sentence of section 5(c)(4)(B) of 
the 
Home 
Owners’ 
Loan 
Act 
(12 
U.S.C. 
1464(c)(4)(B)) is amended by striking ‘‘by savings 
associations of such State and by Federal associa-
tions’’ and inserting ‘‘by State and Federal deposi-
tory institutions’’. 
(4) Subparagraph (A)(ii) and subparagraph 
(B)(ii) of section 1(b)(2) of the Bank Service Com-
pany Act (12 U.S.C. 1861(b)(2)) are each amended 
by striking ‘‘insured banks’’ and inserting ‘‘insured 
depository institutions’’. 
(5) Section 1(b)(8) of the Bank Service Com-
pany Act (12 U.S.C. 1861(b)(8)) is further amend-
ed—
(A) by striking ‘‘insured bank’’ and insert-
ing ‘‘insured depository institution’’
(B) by striking ‘‘insured banks’’ each place 
such term appears and inserting ‘‘insured de-
pository institutions’’; and 
(C) by striking ‘‘the bank’s’’ and inserting 
‘‘the depository institution’s’’. 
(6) Section 2 of the Bank Service Company Act 
(12 U.S.C. 1862) is amended by inserting ‘‘or sav-
ings associations, other than the limitation on the 
amount of investment by a Federal savings associa-
tion contained in section 5(c)(4)(B) of Home Own-
ers’ Loan Act’’ after ‘‘relating to banks’’. 
(7) Section 4(c) of the Bank Service Company 
Act (12 U.S.C. 1864(c)) is amended by inserting ‘‘or 
State savings association’’ after ‘‘State bank’’ each 
place such term appears. 
(8) Section 4(d) of the Bank Service Company 
Act (12 U.S.C. 1864(d)) is amended by inserting 
‘‘or Federal savings association’’ after ‘‘national 
bank’’ each place such term appears. 
(9) Section 4(e) of the Bank Service Company 
Act (12 U.S.C. 1864(e)) is amended to read as fol-
lows: 
‘‘(e) A bank service company may perform—
‘‘(1) only those services that each depository in-
stitution shareholder or member is otherwise author-
ized to perform under any applicable Federal or 
State law; and 
‘‘(2) such services only at locations in a State 
in which each such shareholder or member is author-
ized to perform such services.’’.
(10) Section 4(f) of the Bank Service Company 
Act (12 U.S.C. 1864(f)) is amended by inserting ‘‘or 
savings associations’’ after ‘‘location of banks’’. 
(11) Section 5 of the Bank Service Company 
Act (12 U.S.C. 1865) is amended—
(A) in subsection (a)—
(i) by striking ‘‘insured bank’’ and in-
serting ‘‘insured depository institution’’; 
and 
(ii) by striking ‘‘bank’s’’ and inserting 
‘‘institution’s’’. 
(B) in subsection (b), by striking ‘‘insured 
bank’’ and inserting ‘‘insured depository insti-
tution’’; and 
(C) in subsection (c)—
(i) by striking ‘‘the bank or banks’’ 
and inserting ‘‘any depository institution’’; 
and 
(ii) by striking ‘‘capability of the 
bank’’ and inserting ‘‘capability of the de-
pository institution’’. 
(12) Section 7 of the Bank Service Company 
Act (12 U.S.C. 1867) is amended—
(A) in subsection (b), by striking ‘‘insured 
bank’’ and inserting ‘‘insured depository insti-
tution’’; 
(B) in subsection (c)—
(i) by striking ‘‘a bank’’ each place 
such term appears and inserting ‘‘a deposi-
tory institution’’; and 
(ii) by striking ‘‘the bank’’ each place 
such term appears and inserting ‘‘the de-
pository institution’’. 
SEC. 407. CROSS GUARANTEE AUTHORITY. 
Subparagraph (A) of section 5(e)(9) of the Federal 
Deposit Insurance Act (12 U.S.C. 1815(e)(9)(A)) is 
amended to read as follows: 
‘‘(A) such institutions are controlled by the 
same company; or’’. 
SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK 
HOLDING COMPANIES. 
Subsection (k) of section 18 of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(k)) is amended—
(1) in paragraph (2)(A), by striking ‘‘or deposi-
tory institution holding company’’ and inserting ‘‘or 
covered company’’; 
(2) by striking subparagraph (B) of paragraph 
(2) and inserting the following new subparagraph:
‘‘(B) Whether there is a reasonable basis 
to believe that the institution-affiliated party is 
substantially responsible for—
‘‘(i) the insolvency of the depository 
institution or covered company; 
‘‘(ii) the appointment of a conservator 
or receiver for the depository institution; or 
‘‘(iii) the depository institution’s trou-
bled condition (as defined in the regula-
tions 
prescribed 
pursuant 
to 
section 
32(f)).’’; 
(3) in paragraph (2)(F), by striking ‘‘depository 
institution holding company’’ and inserting ‘‘covered 
company,’’; 
(4) in paragraph (3) in the matter preceding 
subparagraph (A), by striking ‘‘depository institu-
tion holding company’’ and inserting ‘‘covered com-
pany’’; 
(5) in paragraph (3)(A), by striking ‘‘holding 
company’’ and inserting ‘‘covered company’’; 
(6) in paragraph (4)(A)—
(A) by striking ‘‘depository institution 
holding company’’ each place such term appears 
and inserting ‘‘covered company’’; and
(B) by striking ‘‘holding company’’ each 
place such term appears (other than in connec-
tion with the term referred to in subparagraph 
(A)) and inserting ‘‘covered company’’; 
(7) in paragraph (5)(A), by striking ‘‘depository 
institution holding company’’ and inserting ‘‘covered 
company’’; 
(8) in paragraph (5), by adding at the end the 
following new subparagraph: 
‘‘(D) COVERED COMPANY.—The term ‘cov-
ered company’ means any depository institution 
holding company (including any company re-
quired to file a report under section 4(f)(6) of 
the Bank Holding Company Act of 1956), or 
any other company that controls an insured de-
pository institution.’’; and 
(9) in paragraph (6)—
(A) by striking ‘‘depository institution 
holding company’’ and inserting ‘‘covered com-
pany,’’; and 
(B) by striking ‘‘or holding company’’ and 
inserting ‘‘or covered company’’.
SEC. 409. AMENDMENTS RELATING TO CHANGE IN BANK 
CONTROL. 
Section 7(j) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(j)) is amended—
(1) in paragraph (1)(D)—
(A) by striking ‘‘is needed to investigate’’ 
and inserting ‘‘is needed—
‘‘(i) to investigate’’; 
(B) by striking ‘‘United States Code.’’ and 
inserting ‘‘United States Code; or’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) to analyze the safety and sound-
ness of any plans or proposals described in 
paragraph (6)(E) or the future prospects 
of the institution.’’; and 
(2) in paragraph (7)(C), by striking ‘‘the finan-
cial condition of any acquiring person’’ and inserting 
‘‘either the financial condition of any acquiring per-
son or the future prospects of the institution’’.
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—
(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. 
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’’. 
(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-
ing the sale of personal property (and any servicers 
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 case 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.’’.
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—
(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 
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) to any officer, director, or re-
ceiver of such depository institution or en-
tity; and 
‘‘(iii) any other person the Federal 
banking agency determines to be appro-
priate.’’. 
(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 in-
formation concerning any credit union or other enti-
ty examined by the Board under authority of any 
Federal 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) to any officer, director, or receiver of 
such credit union or entity; and 
‘‘(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 
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’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(ii) OLD RECORDS.—In the case of 
records of an insured depository institution 
which are at least 10 years old as of the
date the Corporation is appointed as the 
receiver of such depository institution, the 
Corporation may destroy such records in 
accordance with clause (i) any time after 
such appointment is final without regard 
to the 6-year period of limitation contained 
in such clause.’’. 
SEC. 605. MODERNIZATION OF FDIC RECORDKEEPING RE-
QUIREMENT. 
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.—The Corporation may cause 
any and all records, papers, or documents kept by 
the Corporation or in the possession or custody of 
the Corporation to be—
‘‘(A) photographed or microphotographed 
or otherwise reproduced upon film; or 
‘‘(B) preserved in any electronic medium 
or format which is capable of—
‘‘(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
BOARD
OF
DIREC-
TORS.—Any photographs, microphotographs, or pho-
tographic film or copies thereof described in para-
graph (1)(A) or reproduction of electronically stored 
data described in paragraph (1)(B) shall be pre-
served in such manner as the Board of Directors 
shall prescribe and the original records, papers, or 
documents may be destroyed or otherwise disposed 
of as the Board of Directors may direct.’’.
SEC. 606. 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 INSTITUTION.—
(1) IN GENERAL.—Section 8(g)(1) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1818(g) is 
amended—
(A) in subparagraph (A), by striking ‘‘the 
depository’’ each place such term appears and 
inserting ‘‘any depository’’; 
(B) in subparagraph (B)(i), by inserting 
‘‘of which the subject of the order is an institu-
tion-affiliated party’’ before the period at the 
end; 
(C) in subparagraph (C), by striking ‘‘the 
depository’’ each place such term appears and 
inserting ‘‘any depository’’; 
(D) in subparagraph (D)(i), by inserting 
‘‘of which the subject of the order is an institu-
tion-affiliated party’’ after ‘‘upon the depository 
institution’’; and 
(E) by adding at the end the following new 
subparagraph:
(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), by striking ‘‘the 
credit union’’ each place such term appears and 
inserting ‘‘any credit union’’; 
(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 
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. 607. 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: 
‘‘(4) REPORTS ON COMPETITIVE FACTORS.—
‘‘(A) REQUEST FOR REPORT.—In the in-
terests of uniform standards, before acting on 
any application for approval of a merger trans-
action, the responsible agency, unless the agen-
cy finds that it must act immediately in order 
to prevent the probable failure of a depository 
institution involved, shall—
‘‘(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) 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.—
The penultimate sentence of section 18(c)(6) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is 
amended to read as follows: ‘‘If the agency has advised 
the Attorney General under paragraph (4)(B) of the exist-
ence of an emergency requiring expeditious action and has 
requested a report on the competitive factors within 10 
days, the transaction may not be consummated before the 
fifth calendar day after the date of approval by the agen-
cy.’’. 
SEC. 608. 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. 609. SHORTENING OF POST-APPROVAL ANTITRUST RE-
VIEW PERIOD WITH THE AGREEMENT OF THE 
ATTORNEY GENERAL. 
(a) ANTITRUST REVIEWS UNDER THE BANK HOLD-
ING COMPANY ACT OF 1956.—The 4th sentence of section 
11(b) of the Bank Holding Company Act of 1956 (12
U.S.C. 1849(b) is amended by striking ‘‘15 calendar 
days’’ and inserting ‘‘5 calendar days’’. 
(b) ANTITRUST REVIEWS UNDER THE FEDERAL DE-
POSIT INSURANCE ACT.—The last sentence of section 
18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)(6)) is amended by striking ‘‘15 calendar days’’ 
and inserting ‘‘5 calendar days’’. 
SEC. 610. 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 
paragraph (3), a Federal banking agency may not be 
compelled to disclose information received from a 
foreign regulatory or supervisory authority if—
‘‘(A) 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 agencies 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—
‘‘(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. 611. PROHIBITION ON THE PARTICIPATION IN THE AF-
FAIRS OF BANK HOLDING COMPANY OR EDGE 
ACT OR AGREEMENT CORPORATIONS BY 
CONVICTED INDIVIDUAL. 
Section 19 of the Federal Deposit Insurance Act (12 
U.S.C. 1829) is amended by inserting after subsection (c) 
(as added by section 604 of this title) the following new 
subsection: 
‘‘(c) BANK HOLDING COMPANIES.—Subsections (a) 
and (b) shall apply to any bank holding company any sub-
sidiary (other than a bank) of a bank holding company 
and any organization organized and operated under sec-
tion 25A of the Federal Reserve Act or operating under 
section 25 of the Federal Reserve Act as if such bank 
holding company, subsidiary, or organization were an in-
sured depository institution, except such subsections shall 
be applied for purposes of this subsection by substituting 
‘‘Board of Governors of the Federal Reserve System’’ for
‘‘Corporation’’ each place such term appears in such sub-
sections.’’. 
SEC. 612. CLARIFICATION THAT NOTICE AFTER SEPARA-
TION FROM SERVICE MAY BE MADE BY AN 
ORDER. 
Section 8(i)(3) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(i)(3)) is amended by inserting ‘‘or order’’ 
after ‘‘notice’’ each place such term appears. 
SEC. 613. EXAMINERS OF FINANCIAL INSTITUTIONS. 
(a) OFFER OF CREDIT TO BANK EXAMINER.—Sec-
tion 212 of title 18, United States Code, is amended to 
read as follows: 
‘‘§ 212. Offer of credit to bank examiner 
‘‘(a) Subject to section 213(b), whoever being an offi-
cer, director or employee of a financial institution extends 
credit to any examiner which the examiner is prohibited 
from accepting under section 213 shall be fined under this 
title or imprisoned not more than one year, or both; and 
may be fined a further sum equal to the money so loaned 
or gratuity given. 
‘‘(b) For purposes of this section, the following defini-
tions shall apply: 
‘‘(1) The term ‘financial institution’ does not 
include a credit union. 
‘‘(2) The term ‘examiner’ means any person—
‘‘(A) appointed by a Federal financial in-
stitution regulatory agency or pursuant to the 
laws of any State to examine a financial institu-
tion; or 
‘‘(B) elected under the law of any State to 
conduct examinations of any financial institu-
tion. 
‘‘(3) The term ‘Federal financial institution 
regulatory agency’ means—
‘‘(A) the Comptroller of the Currency; 
‘‘(B) the Board of Governors of the Fed-
eral Reserve System; 
‘‘(C) the Director of the Office of Thrift 
Supervision; 
‘‘(D) the Federal Deposit Insurance Cor-
poration; 
‘‘(E) the Federal Housing Finance Board; 
‘‘(F) the Farm Credit Administration; 
‘‘(G) the Farm Credit System Insurance 
Corporation; and 
‘‘(H) the Small Business Administration.’’. 
(b) ACCEPTANCE OF CREDIT BY A BANK EXAM-
INER.—Section 213 of title 18, United States Code, is 
amended to read as follows:
‘‘§ 213. Acceptance of credit by bank examiner 
‘‘(a) Whoever, being an examiner, accepts an exten-
sion of credit from any financial institution that the exam-
iner examines or has authority to examine, or from any 
person connected with any such financial institution, shall 
be fined under this title or imprisoned not more than one 
year, or both; and may be fined a further sum equal to 
the money so loaned or gratuity given, and shall be dis-
qualified from holding office as such examiner. 
‘‘(b) Notwithstanding subsection (a) or section 212, 
a Federal financial institution regulatory agency may, by 
regulation or by order on a case-by-case basis, permit a 
financial institution to extend credit to an examiner, and 
permit an examiner to accept an extension of credit from 
a financial institution, if the agency determines that the 
extension of credit would not likely affect the integrity of 
any examination of a financial institution. Before pre-
scribing regulations or issuing any order under this sub-
section, a Federal financial institution regulatory agency 
shall consult with each other Federal financial institution 
regulatory agency with regard to any such regulation or 
order. Any regulation prescribed by a Federal financial in-
stitution regulatory agency under this subsection, may ex-
empt certain classes or categories of credit from the scope 
of this section or section 212, and shall provide procedures 
for examiners and financial institutions to request case-
by-case exemption orders under this subsection, subject to 
subsection (c). 
‘‘(c) In considering any request by a financial institu-
tion or examiner for a case-by-case exemption order under 
subsection (b), a Federal financial institution regulatory 
agency shall consider such factors as the agency determine 
to be appropriate, including—
‘‘(1) whether the terms and conditions of the 
credit being offered the examiner are generally com-
parable to those offered by the financial institution 
in connection with similar types of credit extended 
to other customers in similar circumstances; 
‘‘(2) the nature and extent of any other rela-
tionship the examiner has with the financial institu-
tion or any officer, director, or employee of the fi-
nancial institution; 
‘‘(3) the proximity in time between any exam-
ination of the financial institution in which the ex-
aminer participated, or is scheduled to participate, 
and the extension, or the offer of an extension, of 
credit; 
‘‘(4) whether there are any other circumstances 
involving the transaction, or the proposed trans-
action, that may be perceived as providing the exam-
iner with preferential treatment; and
‘‘(5) any other fact or circumstance the agency 
may consider to be appropriate under the cir-
cumstances. 
‘‘(d) Notwithstanding subsection (a) or section 212, 
an examiner employed by a Federal financial institution 
regulatory agency may apply for and receive a credit card, 
or otherwise be approved as a credit cardholder, under any 
credit card account under an open end consumer credit 
plan, to the extent the terms and conditions applicable 
with respect to such account, and any credit extended 
under such account, are no more favorable generally to 
the examiner than the terms and conditions that are gen-
erally applicable to credit card accounts offered by the 
same financial institution to other cardholders under open 
end consumer credit plans. 
‘‘(e) For purposes of this section, the following defini-
tions shall apply: 
‘‘(1) The terms ‘examiner’, ‘Federal financial 
institution regulatory agency’, and ‘financial institu-
tion’ have the same meaning as in section 212. 
‘‘(2) The term ‘credit’ means the right granted 
by a creditor to a debtor to defer payment of debt 
or to incur debt and defer its payment. 
‘‘(3) The term ‘creditor’ refers only to a person 
who both (A) regularly extends, whether in connec-
tion with loans, sales of property or services, or oth-
erwise, consumer credit which is payable by agree-
ment in more than four installments or for which 
the payment of a finance charge is or may be re-
quired, and (B) is the person to whom the debt aris-
ing from the consumer credit transaction is initially 
payable on the face of the evidence of indebtedness 
or, if there is no such evidence of indebtedness, by 
agreement. Notwithstanding the preceding sentence, 
in the case of an open-end credit plan involving a 
credit card, the card issuer and any person who hon-
ors the credit card and offers a discount which is a 
finance charge are creditors. 
‘‘(4) The term ‘consumer’, when used with ref-
erence to an open end credit plan, means a credit 
plan under which the party to whom credit is offered 
or extended is a natural person, and the money, 
property, or services which are the subject of any 
transaction under the plan are primarily for per-
sonal, family, or household purposes. 
‘‘(5) The term ‘open end credit plan’ means a 
plan under which the creditor reasonably con-
templates repeated transactions, which prescribes 
the terms of such transactions, and which provides 
for a finance charge which may be computed from
SEC. 614. PARITY IN STANDARDS FOR INSTITUTION-AFFILI-
ATED PARTIES. 
Section 3(u)(4) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(u)(4)) is amended by striking ‘‘know-
ingly or recklessly’’. 
SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS 
REGARDING FDIC DEPOSIT INSURANCE COV-
ERAGE. 
(a) IN GENERAL.—Section 8 of the Federal Deposit 
Insurance Act (12 U.S.C. 1818) is amended by adding at 
the end the following new subsection: 
‘‘(x) MISREPRESENTATION REGARDING DEPOSIT IN-
SURANCE COVERAGE.—
‘‘(1) IN GENERAL.—Any person who knowingly 
violates the third undesignated paragraph of section 
709 of title 18, United States Code, shall be liable 
to the United States Government for a civil penalty 
in an amount not to exceed $1,000,000 for each day 
during which such violation occurs or continues. 
‘‘(2) TIME
LIMITATIONS
FOR
ASSESSMENTS 
AND COMMENCEMENT OF CIVIL ACTIONS.—
‘‘(A) 
ASSESSMENTS.—The 
Corporation 
may assess a civil penalty under paragraph (1) 
at any time before the end of the 6-year period 
beginning on the later of—
‘‘(i) the date the violation occurred; or
‘‘(ii) in the case of a continuing viola-
tion, the last day the continuing violation 
occurred. 
‘‘(B) CIVIL
ACTIONS.—The Corporation 
may commence a civil action to recover a civil 
penalty assessed under this subsection at any 
time before the end of the 2-year period begin-
ning on the later of—
‘‘(i) the date the penalty was assessed; 
or 
‘‘(ii) the date any judgment becomes 
final in any criminal action under section 
709 of title 18, United States Code, in 
connection with the same violation with re-
spect to which the penalty is assessed. 
‘‘(3) CRIMINAL PENALTY NOT EXCLUSIVE OF 
CIVIL PENALTY.—A civil money penalty may be im-
posed under this subsection with respect to any vio-
lation of the third undesignated paragraph of section 
709 of title 18, United States Code, notwithstanding 
the fact that a criminal penalty is imposed with re-
spect to the same violation.’’.
SEC. 616. COMPENSATION OF FEDERAL HOME LOAN BANK 
DIRECTORS. 
Section 17(i) of the Federal Home Loan Bank Act 
(12 U.S.C. 1427(i)) is amended to read as follows: 
‘‘(i) DIRECTORS’ COMPENSATION.—
‘‘(1) IN GENERAL.—Each Federal home loan 
bank may pay the directors on the board of directors 
of the bank reasonable compensation for the time re-
quired of such directors, and reasonable expenses in-
curred by the directors, in connection with service on 
the board of directors, in accordance with resolutions 
adopted by the board of directors and subject to the 
approval of the Board. 
‘‘(2) ANNUAL REPORT BY THE BOARD.—Infor-
mation regarding compensation and expenses paid 
by the Federal home loan banks to the directors on 
the boards of directors of the banks shall be included 
in the annual report submitted to the Congress by 
the Board pursuant to section 2B(d).’’.
TITLE VII—CLERICAL AND 
TECHNICAL AMENDMENTS 
SEC. 701. CLERICAL AMENDMENTS TO THE HOME OWNERS’ 
LOAN ACT. 
(a) AMENDMENT TO TABLE OF CONTENTS.—The 
table of contents in section 1 of the Home Owners’ Loan 
Act (12 U.S.C. 1461) is amended by striking the items
relating to sections 5 and 6 and inserting the following 
new items:
‘‘Sec. 5. Savings associations. 
‘‘Sec. 6. [Repealed.]’’.
(b) CLERICAL AMENDMENTS TO HEADINGS.—
(1) The heading for section 4(a) of the Home 
Owners’ Loan Act (12 U.S.C. 1463(a)) is amended 
by striking ‘‘(a) FEDERAL
SAVINGS
ASSOCIA-
TIONS.—’’ and inserting ‘‘(a) GENERAL RESPON-
SIBILITIES OF THE DIRECTOR.—’’. 
(2) The section heading for section 5 of the 
Home Owners’ Loan Act (12 U.S.C. 1464) is 
amended to read as follows: 
‘‘SEC. 5. SAVINGS ASSOCIATIONS.’’. 
SEC. 702. TECHNICAL CORRECTIONS TO THE FEDERAL 
CREDIT UNION ACT. 
The Federal Credit Union Act (12 U.S.C. 1751 et 
seq.) is amended as follows: 
(1) In section 101(3), strike ‘‘and’’ after the 
semicolon. 
(2) In section 101(5), strike the terms ‘‘account 
account’’ and ‘‘account accounts’’ each place any 
such term appears and insert ‘‘account’’. 
(3) In section 107(a)(5)(E) (as so designated 
by section 303 of this Act), strike the period at the 
end and insert a semicolon.
(4) In paragraphs (6) and (7) of section 107(a) 
(as so designated by section 303 of this Act), strike 
the period at the end and insert a semicolon. 
(5) In section 107(a)(7)(D) (as so designated 
by section 303 of this Act), strike ‘‘the Federal Sav-
ings and Loan Insurance Corporation or’’. 
(6) In section 107(a)(7)(E) (as so designated 
by section 303 of this Act), strike ‘‘the Federal 
Home Loan Bank Board,’’ and insert ‘‘the Federal 
Housing Finance Board,’’. 
(7) In section 107(a)(9) (as so designated by 
section 303 of this Act), strike ‘‘subchapter III’’ and 
insert ‘‘title III’’. 
(8) In section 107(a)(13) (as so designated by 
section 303 of this Act), strike the ‘‘and’’ after the 
semicolon at the end. 
(9) In section 109(c)(2)(i), strike ‘‘(12 U.S.C. 
4703(16))’’. 
(10) In section 120(h), strike ‘‘under the Act 
approved July 30, 1947 (6 U.S.C., secs. 6–13),’’ and 
insert ‘‘chapter 93 of title 31, United States Code,’’. 
(11) In section 201(b)(5), strike ‘‘section 116 
of’’. 
(12) In section 202(h)(3), strike ‘‘section 
207(c)(1)’’ and insert ‘‘section 207(k)(1)’’.
(13) In section 204(b), strike ‘‘such others pow-
ers’’ and insert ‘‘such other powers’’. 
(14) In section 206(e)(3)(D), strike ‘‘and’’ after 
the semicolon at the end. 
(15) In section 206(f)(1), strike ‘‘subsection 
(e)(3)(B)’’ and insert ‘‘subsection (e)(3)’’. 
(16) In section 206(g)(7)(D), strike ‘‘and sub-
section (1)’’. 
(17) In section 206(t)(2)(B), insert ‘‘regula-
tions’’ after ‘‘as defined in’’. 
(18) In section 206(t)(2)(C), strike ‘‘material 
affect’’ and insert ‘‘material effect’’. 
(19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ 
after the semicolon at the end. 
(20) In section 206A(a)(2)(A), strike ‘‘regulator 
agency’’ and insert ‘‘regulatory agency’’. 
(21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ 
after the semicolon at the end. 
(22) In section 207(c)(8)(D)(ii)(I), insert a 
closing parenthesis after ‘‘Act of 1934’’. 
(23) In the heading for subparagraph (A) of 
section 207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’. 
(24) In section 207(f)(3)(A), strike ‘‘category 
or claimants’’ and insert ‘‘category of claimants’’.
100
(25) In section 209(a)(8), strike the period at 
the end and insert a semicolon. 
(26) In section 216(n), insert ‘‘any action’’ be-
fore ‘‘that is required’’. 
(27) In section 304(b)(3), strike ‘‘the affairs or 
such credit union’’ and insert ‘‘the affairs of such 
credit union’’. 
(28) In section 310, strike ‘‘section 102(e)’’ and 
insert ‘‘section 102(d)’’. 
SEC. 703. OTHER TECHNICAL CORRECTIONS. 
Section 1306 of title 18, United States Code, is 
amended by striking ‘‘5136A’’ and inserting ‘‘5136B’’. 
SEC. 704. REPEAL OF OBSOLETE PROVISIONS OF THE BANK 
HOLDING COMPANY ACT OF 1956. 
(a) IN GENERAL.—Section 2 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1841) is amended—
(1) in subsection (c)(2), by striking subpara-
graphs (I) and (J); and 
(2) by striking subsection (m) and inserting the 
following new subsection: 
‘‘(m) [Repealed]’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
Paragraphs (1) and (2) of section 4(h) of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1843(h)) are each
101
amended by striking ‘‘(G), (H), (I), or (J) of section 
2(c)(2)’’ and inserting ‘‘(G), or (H) of section 2(c)(2)’’.
Æ