H. R. 3841
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-four
An Act
To amend the Bank Holding Company Act of 1956, the Revised Statutes of the
United States, and the Federal Deposit Insurance Act to provide for interstate
banking and branching.
Be it enacted by the Senate and House of Representatives 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 ‘‘Riegle-Neal
Interstate Banking and Branching Efficiency Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
TITLE I—INTERSTATE BANKING AND BRANCHING
Sec. 101. Interstate banking.
Sec. 102. Interstate bank mergers.
Sec. 103. State ‘‘opt-in’’ election to permit interstate branching through de novo
branches.
Sec. 104. Branching by foreign banks.
Sec. 105. Coordination of examination authority.
Sec. 106. Branch closures.
Sec. 107. Equalizing competitive opportunities for United States and foreign banks.
Sec. 108. Federal Reserve Board study on bank fees.
Sec. 109. Prohibition against deposit production offices.
Sec. 110. Community Reinvestment Act evaluation of banks with interstate
branches.
Sec. 111. Restatement of existing law.
Sec. 112. GAO report on data collection under interstate branching.
Sec. 113. Maximum interest rate on certain FMHA loans.
Sec. 114. Notice requirements for banking agency decisions preempting State law.
Sec. 115. Moratorium on examination fees under the International Banking Act of
1978.
TITLE II—GENERAL PROVISIONS
Sec. 201. Amendments to Federal Deposit Insurance Act and Federal Home Loan
Bank Act.
Sec. 202. Sense of the Senate concerning multilateral export controls.
Sec. 203. Amendments relating to silver medals for Persian Gulf veterans.
Sec. 204. Commemoration of 1995 Special Olympic World Games.
Sec. 205. National Community Service Commemorative Coins.
Sec. 206. Robert F. Kennedy Memorial Commemorative Coins.
Sec. 207. United States Military Academy Bicentennial Commemorative Coins.
Sec. 208. United States Botanic Garden Commemorative Coins.
Sec. 209. Mount Rushmore Commemorative Coins.
Sec. 210. Study and report on the United States financial services system.
Sec. 211. Flexibility in choosing boards of directors.
H. R. 3841—2
TITLE I—INTERSTATE BANKING AND
BRANCHING
SEC. 101. INTERSTATE BANKING.
(a) IN GENERAL.—Section 3(d) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842(d)) is amended to read as follows:
‘‘(d) INTERSTATE BANKING.—
‘‘(1) APPROVALS AUTHORIZED.—
‘‘(A) ACQUISITION OF BANKS.—The Board may approve
an application under this section by a bank holding com-
pany that is adequately capitalized and adequately man-
aged to acquire control of, or acquire all or substantially
all of the assets of, a bank located in a State other than
the home State of such bank holding company, without
regard to whether such transaction is prohibited under
the law of any State.
‘‘(B) PRESERVATION OF STATE AGE LAWS.—
‘‘(i) IN GENERAL.—Notwithstanding subparagraph
(A), the Board may not approve an application pursu-
ant to such subparagraph that would have the effect
of permitting an out-of-State bank holding company
to acquire a bank in a host State that has not been
in existence for the minimum period of time, if any,
specified in the statutory law of the host State.
‘‘(ii) SPECIAL RULE FOR STATE AGE LAWS SPECIFYING
A PERIOD OF MORE THAN 5 YEARS.—Notwithstanding
clause (i), the Board may approve, pursuant to
subparagraph (A), the acquisition of a bank that has
been in existence for at least 5 years without regard
to any longer minimum period of time specified in
a statutory law of the host State.
‘‘(C) SHELL BANKS.—For purposes of this subsection,
a bank that has been chartered solely for the purpose
of, and does not open for business prior to, acquiring control
of, or acquiring all or substantially all of the assets of,
an existing bank shall be deemed to have been in existence
for the same period of time as the bank to be acquired.
‘‘(D) EFFECT ON STATE CONTINGENCY LAWS.—No provi-
sion of this subsection shall be construed as affecting the
applicability of a State law that makes an acquisition of
a bank contingent upon a requirement to hold a portion
of such bank’s assets available for call by a State-sponsored
housing entity established pursuant to State law, if—
‘‘(i) the State law does not have the effect of
discriminating against out-of-State banks, out-of-State
bank holding companies, or subsidiaries of such banks
or bank holding companies;
‘‘(ii) that State law was in effect as of the date
of enactment of the Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994;
‘‘(iii) the Federal Deposit Insurance Corporation
has not determined that compliance with such State
law would result in an unacceptable risk to the appro-
priate deposit insurance fund; and
‘‘(iv) the appropriate Federal banking agency for
such bank has not found that compliance with such
H. R. 3841—3
State law would place the bank in an unsafe or
unsound condition.
‘‘(2) CONCENTRATION LIMITS.—
‘‘(A) NATIONWIDE CONCENTRATION LIMITS.—The Board
may not approve an application pursuant to paragraph
(1)(A) if the applicant (including all insured depository
institutions which are affiliates of the applicant) controls,
or upon consummation of the acquisition for which such
application is filed would control, more than 10 percent
of the total amount of deposits of insured depository institu-
tions in the United States.
‘‘(B) STATEWIDE CONCENTRATION LIMITS OTHER THAN
WITH RESPECT TO INITIAL ENTRIES.—The Board may not
approve an application pursuant to paragraph (1)(A) if—
‘‘(i) immediately before the consummation of the
acquisition for which such application is filed, the
applicant (including any insured depository institution
affiliate of the applicant) controls any insured deposi-
tory institution or any branch of an insured depository
institution in the home State of any bank to be
acquired or in any host State in which any such bank
maintains a branch; and
‘‘(ii) the applicant (including all insured depository
institutions which are affiliates of the applicant), upon
consummation of the acquisition, would control 30 per-
cent or more of the total amount of deposits of insured
depository institutions in any such State.
‘‘(C) EFFECTIVENESS OF STATE DEPOSIT CAPS.—No provi-
sion of this subsection shall be construed as affecting the
authority of any State to limit, by statute, regulation, or
order, the percentage of the total amount of deposits of
insured depository institutions in the State which may
be held or controlled by any bank or bank holding company
(including all insured depository institutions which are
affiliates of the bank or bank holding company) to the
extent the application of such limitation does not discrimi-
nate against out-of-State banks, out-of-State bank holding
companies, or subsidiaries of such banks or holding
companies.
‘‘(D) EXCEPTIONS
TO
SUBPARAGRAPH
(B).—The Board
may approve an application pursuant to paragraph (1)(A)
without regard to the applicability of subparagraph (B)
with respect to any State if—
‘‘(i) there is a limitation described in subparagraph
(C) in a State statute, regulation, or order which has
the effect of permitting a bank or bank holding com-
pany (including all insured depository institutions
which are affiliates of the bank or bank holding com-
pany) to control a greater percentage of total deposits
of all insured depository institutions in the State than
the percentage permitted under subparagraph (B); or
‘‘(ii) the acquisition is approved by the appropriate
State bank supervisor of such State and the standard
on which such approval is based does not have the
effect of discriminating against out-of-State banks, out-
of-State bank holding companies, or subsidiaries of
such banks or holding companies.
H. R. 3841—4
‘‘(E) DEPOSIT
DEFINED.—For purposes of this para-
graph, the term ‘deposit’ has the same meaning as in
section 3(l) of the Federal Deposit Insurance Act.
‘‘(3) COMMUNITY REINVESTMENT COMPLIANCE.—In determin-
ing whether to approve an application under paragraph (1)(A),
the Board shall—
‘‘(A) comply with the responsibilities of the Board
regarding such application under section 804 of the
Community Reinvestment Act of 1977; and
‘‘(B) take into account the applicant’s record of compli-
ance with applicable State community reinvestment laws.
‘‘(4) APPLICABILITY OF ANTITRUST LAWS.—No provision of
this subsection shall be construed as affecting—
‘‘(A) the applicability of the antitrust laws; or
‘‘(B) the applicability, if any, of any State law which
is similar to the antitrust laws.
‘‘(5) EXCEPTION FOR BANKS IN DEFAULT OR IN DANGER OF
DEFAULT.—The Board may approve an application pursuant
to paragraph (1)(A) which involves—
‘‘(A) an acquisition of 1 or more banks in default or
in danger of default; or
‘‘(B) an acquisition with respect to which assistance
is provided under section 13(c) of the Federal Deposit Insur-
ance Act;
without regard to subparagraph (B) or (D) of paragraph (1)
or paragraph (2) or (3).’’.
(b) STATE TAXATION AUTHORITY NOT AFFECTED.—Section 7 of
the Bank Holding Company Act of 1956 (12 U.S.C. 1846) is
amended—
(1) by striking ‘‘No provision’’ and inserting ‘‘(a) IN GEN-
ERAL.—No provision’’; and
(2) by adding at the end the following new subsection:
‘‘(b) STATE TAXATION AUTHORITY NOT AFFECTED.—No provision
of this Act shall be construed as affecting the authority of any
State or political subdivision of any State to adopt, apply, or admin-
ister any tax or method of taxation to any bank, bank holding
company, or foreign bank, or any affiliate of any bank, bank holding
company, or foreign bank, to the extent that such tax or tax method
is otherwise permissible by or under the Constitution of the United
States or other Federal law.’’.
(c) DEFINITIONS.—Section 2 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841) is amended by adding at the end the
following new subsections:
‘‘(n) INCORPORATED DEFINITIONS.—For purposes of this Act,
the terms ‘insured depository institution’, ‘appropriate Federal
banking agency’, ‘default’, ‘in danger of default’, and ‘State bank
supervisor’ have the same meanings as in section 3 of the Federal
Deposit Insurance Act.
‘‘(o) OTHER DEFINITIONS.—For purposes of this Act, the follow-
ing definitions shall apply:
‘‘(1) ADEQUATELY
CAPITALIZED.—The term ‘adequately
capitalized’ means a level of capitalization which meets or
exceeds all applicable Federal regulatory capital standards.
‘‘(2) ANTITRUST LAWS.—Except as provided in section 11,
the term ‘antitrust laws’—
‘‘(A) has the same meaning as in subsection (a) of
the first section of the Clayton Act; and
H. R. 3841—5
‘‘(B) includes section 5 of the Federal Trade Commis-
sion Act to the extent that such section 5 relates to unfair
methods of competition.
‘‘(3) BRANCH.—The term ‘branch’ means a domestic branch
(as defined in section 3 of the Federal Deposit Insurance Act).
‘‘(4) HOME STATE.—The term ‘home State’ means—
‘‘(A) with respect to a national bank, the State in
which the main office of the bank is located;
‘‘(B) with respect to a State bank, the State by which
the bank is chartered; and
‘‘(C) with respect to a bank holding company, the State
in which the total deposits of all banking subsidiaries of
such company are the largest on the later of—
‘‘(i) July 1, 1966; or
‘‘(ii) the date on which the company becomes a
bank holding company under this Act.
‘‘(5) HOST STATE.—The term ‘host State’ means—
‘‘(A) with respect to a bank, a State, other than the
home State of the bank, in which the bank maintains,
or seeks to establish and maintain, a branch; and
‘‘(B) with respect to a bank holding company, a State,
other than the home State of the company, in which the
company controls, or seeks to control, a bank subsidiary.
‘‘(6) OUT-OF-STATE
BANK.—The term ‘out-of-State bank’
means, with respect to any State, a bank whose home State
is another State.
‘‘(7) OUT-OF-STATE
BANK
HOLDING
COMPANY.—The term
‘out-of-State bank holding company’ means, with respect to
any State, a bank holding company whose home State is
another State.’’.
(d) SUBSIDIARY DEPOSITORY INSTITUTIONS AS AGENTS.—Section
18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended
by adding at the end the following new subsection:
‘‘(r) SUBSIDIARY DEPOSITORY INSTITUTIONS AS AGENTS FOR CER-
TAIN AFFILIATES.—
‘‘(1) IN GENERAL.—Any bank subsidiary of a bank holding
company may receive deposits, renew time deposits, close loans,
service loans, and receive payments on loans and other obliga-
tions as an agent for a depository institution affiliate.
‘‘(2) BANK ACTING AS AGENT IS NOT A BRANCH.—Notwith-
standing any other provision of law, a bank acting as an agent
in accordance with paragraph (1) for a depository institution
affiliate shall not be considered to be a branch of the affiliate.
‘‘(3) PROHIBITIONS ON ACTIVITIES.—A depository institution
may not—
‘‘(A) conduct any activity as an agent under paragraph
(1) or (6) which such institution is prohibited from conduct-
ing as a principal under any applicable Federal or State
law; or
‘‘(B) as a principal, have an agent conduct any activity
under paragraph (1) or (6) which the institution is prohib-
ited from conducting under any applicable Federal or State
law.
‘‘(4) EXISTING AUTHORITY NOT AFFECTED.—No provision of
this subsection shall be construed as affecting—
H. R. 3841—6
‘‘(A) the authority of any depository institution to act
as an agent on behalf of any other depository institution
under any other provision of law; or
‘‘(B) whether a depository institution which conducts
any activity as an agent on behalf of any other depository
institution under any other provision of law shall be consid-
ered to be a branch of such other institution.
‘‘(5) AGENCY RELATIONSHIP REQUIRED TO BE CONSISTENT
WITH SAFE AND SOUND BANKING PRACTICES.—An agency rela-
tionship between depository institutions under paragraph (1)
or (6) shall be on terms that are consistent with safe and
sound banking practices and all applicable regulations of any
appropriate Federal banking agency.
‘‘(6) AFFILIATED
INSURED
SAVINGS
ASSOCIATIONS.—An
insured savings association which was an affiliate of a bank
on July 1, 1994, may conduct activities as an agent on behalf
of such bank in the same manner as an insured bank affiliate
of such bank may act as agent for such bank under this sub-
section to the extent such activities are conducted only in—
‘‘(A) any State in which—
‘‘(i) the bank is not prohibited from operating a
branch under any provision of Federal or State law;
and
‘‘(ii) the savings association maintained an office
or branch and conducted business as of July 1, 1994;
or
‘‘(B) any State in which—
‘‘(i) the bank is not expressly prohibited from
operating a branch under a State law described in
section 44(a)(2); and
‘‘(ii) the savings association maintained a main
office and conducted business as of July 1, 1994.’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall take effect at the end of the 1-year period beginning on
the date of the enactment of this Act.
SEC. 102. INTERSTATE BANK MERGERS.
(a) IN GENERAL.—The Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.) is amended by adding at the end the following new
section:
‘‘SEC. 44. INTERSTATE BANK MERGERS.
‘‘(a) APPROVAL OF INTERSTATE MERGER TRANSACTIONS AUTHOR-
IZED.—
‘‘(1) IN GENERAL.—Beginning on June 1, 1997, the respon-
sible agency may approve a merger transaction under section
18(c) between insured banks with different home States, with-
out regard to whether such transaction is prohibited under
the law of any State.
‘‘(2) STATE
ELECTION
TO
PROHIBIT
INTERSTATE
MERGER
TRANSACTIONS.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), a
merger transaction may not be approved pursuant to para-
graph (1) if the transaction involves a bank the home
State of which has enacted a law after the date of enact-
ment of the Riegle-Neal Interstate Banking and Branching
Efficiency Act of 1994 and before June 1, 1997, that—
‘‘(i) applies equally to all out-of-State banks; and
H. R. 3841—7
‘‘(ii) expressly prohibits merger transactions involv-
ing out-of-State banks.
‘‘(B) NO EFFECT ON PRIOR APPROVALS OF MERGER TRANS-
ACTIONS.—A law enacted by a State pursuant to subpara-
graph (A) shall have no effect on merger transactions that
were approved before the effective date of such law.
‘‘(3) STATE ELECTION TO PERMIT EARLY INTERSTATE MERGER
TRANSACTIONS.—
‘‘(A) IN
GENERAL.—A merger transaction may be
approved pursuant to paragraph (1) before June 1, 1997,
if the home State of each bank involved in the transaction
has in effect, as of the date of the approval of such trans-
action, a law that—
‘‘(i) applies equally to all out-of-State banks; and
‘‘(ii) expressly permits interstate merger trans-
actions with all out-of-State banks.
‘‘(B) CERTAIN CONDITIONS ALLOWED.—A host State may
impose conditions on a branch within such State of a bank
resulting from an interstate merger transaction if—
‘‘(i) the conditions do not have the effect of discrimi-
nating against out-of-State banks, out-of-State bank
holding companies, or any subsidiary of such bank
or company (other than on the basis of a nationwide
reciprocal treatment requirement);
‘‘(ii) the imposition of the conditions is not pre-
empted by Federal law; and
‘‘(iii) the conditions do not apply or require
performance after May 31, 1997.
‘‘(4) INTERSTATE MERGER TRANSACTIONS INVOLVING ACQUISI-
TIONS OF BRANCHES.—
‘‘(A) IN GENERAL.—An interstate merger transaction
may involve the acquisition of a branch of an insured
bank without the acquisition of the bank only if the law
of the State in which the branch is located permits out-
of-State banks to acquire a branch of a bank in such
State without acquiring the bank.
‘‘(B) TREATMENT OF BRANCH FOR PURPOSES OF THIS
SECTION.—In the case of an interstate merger transaction
which involves the acquisition of a branch of an insured
bank without the acquisition of the bank, the branch shall
be treated, for purposes of this section, as an insured
bank the home State of which is the State in which the
branch is located.
‘‘(5) PRESERVATION OF STATE AGE LAWS.—
‘‘(A) IN
GENERAL.—The responsible agency may not
approve an application pursuant to paragraph (1) that
would have the effect of permitting an out-of-State bank
or out-of-State bank holding company to acquire a bank
in a host State that has not been in existence for the
minimum period of time, if any, specified in the statutory
law of the host State.
‘‘(B) SPECIAL RULE FOR STATE AGE LAWS SPECIFYING
A
PERIOD
OF
MORE
THAN
YEARS.—Notwithstanding
subparagraph (A), the responsible agency may approve a
merger transaction pursuant to paragraph (1) involving
the acquisition of a bank that has been in existence at
H. R. 3841—8
least 5 years without regard to any longer minimum period
of time specified in a statutory law of the host State.
‘‘(6) SHELL BANKS.—For purposes of this subsection, a bank
that has been chartered solely for the purpose of, and does
not open for business prior to, acquiring control of, or acquiring
all or substantially all of the assets of, an existing bank or
branch shall be deemed to have been in existence for the
same period of time as the bank or branch to be acquired.
‘‘(b) PROVISIONS RELATING
TO APPLICATION
AND APPROVAL
PROCESS.—
‘‘(1) COMPLIANCE WITH STATE FILING REQUIREMENTS.—
‘‘(A) IN GENERAL.—Any bank which files an application
for an interstate merger transaction shall—
‘‘(i) comply with the filing requirements of any
host State of the bank which will result from such
transaction to the extent that the requirement—
‘‘(I) does not have the effect of discriminating
against out-of-State banks or out-of-State bank
holding companies or subsidiaries of such banks
or bank holding companies; and
‘‘(II) is similar in effect to any requirement
imposed by the host State on a nonbanking cor-
poration incorporated in another State that
engages in business in the host State; and
‘‘(ii) submit a copy of the application to the State
bank supervisor of the host State.
‘‘(B) PENALTY FOR FAILURE TO COMPLY.—The respon-
sible agency may not approve an application for an inter-
state merger transaction if the applicant materially fails
to comply with subparagraph (A).
‘‘(2) CONCENTRATION LIMITS.—
‘‘(A) NATIONWIDE CONCENTRATION LIMITS.—The respon-
sible agency may not approve an application for an inter-
state merger transaction if the resulting bank (including
all insured depository institutions which are affiliates of
the resulting bank), upon consummation of the transaction,
would control more than 10 percent of the total amount
of deposits of insured depository institutions in the United
States.
‘‘(B) STATEWIDE CONCENTRATION LIMITS OTHER THAN
WITH RESPECT TO INITIAL ENTRIES.—The responsible agency
may not approve an application for an interstate merger
transaction if—
‘‘(i) any bank involved in the transaction (including
all insured depository institutions which are affiliates
of any such bank) has a branch in any State in which
any other bank involved in the transaction has a
branch; and
‘‘(ii) the resulting bank (including all insured
depository institutions which would be affiliates of the
resulting bank), upon consummation of the transaction,
would control 30 percent or more of the total amount
of deposits of insured depository institutions in any
such State.
‘‘(C) EFFECTIVENESS OF STATE DEPOSIT CAPS.—No provi-
sion of this subsection shall be construed as affecting the
authority of any State to limit, by statute, regulation, or
H. R. 3841—9
order, the percentage of the total amount of deposits of
insured depository institutions in the State which may
be held or controlled by any bank or bank holding company
(including all insured depository institutions which are
affiliates of the bank or bank holding company) to the
extent the application of such limitation does not discrimi-
nate against out-of-State banks, out-of-State bank holding
companies, or subsidiaries of such banks or holding
companies.
‘‘(D) EXCEPTIONS TO SUBPARAGRAPH (B).—The respon-
sible agency may approve an application for an interstate
merger transaction pursuant to subsection (a) without
regard to the applicability of subparagraph (B) with respect
to any State if—
‘‘(i) there is a limitation described in subparagraph
(C) in a State statute, regulation, or order which has
the effect of permitting a bank or bank holding com-
pany (including all insured depository institutions
which are affiliates of the bank or bank holding com-
pany) to control a greater percentage of total deposits
of all insured depository institutions in the State than
the percentage permitted under subparagraph (B); or
‘‘(ii) the transaction is approved by the appropriate
State bank supervisor of such State and the standard
on which such approval is based does not have the
effect of discriminating against out-of-State banks, out-
of-State bank holding companies, or subsidiaries of
such banks or holding companies.
‘‘(E) EXCEPTION FOR CERTAIN BANKS.—This paragraph
shall not apply with respect to any interstate merger trans-
action involving only affiliated banks.
‘‘(3) COMMUNITY REINVESTMENT COMPLIANCE.—In determin-
ing whether to approve an application for an interstate merger
transaction in which the resulting bank would have a branch
or bank affiliate immediately following the transaction in any
State in which the bank submitting the application (as the
acquiring bank) had no branch or bank affiliate immediately
before the transaction, the responsible agency shall—
‘‘(A) comply with the responsibilities of the agency
regarding such application under section 804 of the
Community Reinvestment Act of 1977;
‘‘(B) take into account the most recent written evalua-
tion under section 804 of the Community Reinvestment
Act of 1977 of any bank which would be an affiliate of
the resulting bank; and
‘‘(C) take into account the record of compliance of any
applicant bank with applicable State community reinvest-
ment laws.
‘‘(4) ADEQUACY OF CAPITAL AND MANAGEMENT SKILLS.—The
responsible agency may approve an application for an interstate
merger transaction pursuant to subsection (a) only if—
‘‘(A) each bank involved in the transaction is ade-
quately capitalized as of the date the application is filed;
and
‘‘(B) the responsible agency determines that the result-
ing bank will continue to be adequately capitalized and
H. R. 3841—10
adequately managed upon the consummation of the
transaction.
‘‘(5) SURRENDER
OF
CHARTER
AFTER
MERGER
TRANS-
ACTION.—The charters of all banks involved in an interstate
merger transaction, other than the charter of the resulting
bank, shall be surrendered, upon request, to the Federal bank-
ing agency or State bank supervisor which issued the charter.
‘‘(c) APPLICABILITY OF CERTAIN LAWS TO INTERSTATE BANKING
OPERATIONS.—
‘‘(1) STATE TAXATION AUTHORITY NOT AFFECTED.—
‘‘(A) IN GENERAL.—No provision of this section shall
be construed as affecting the authority of any State or
political subdivision of any State to adopt, apply, or admin-
ister any tax or method of taxation to any bank, bank
holding company, or foreign bank, or any affiliate of any
bank, bank holding company, or foreign bank, to the extent
such tax or tax method is otherwise permissible by or
under the Constitution of the United States or other Fed-
eral law.
‘‘(B) IMPOSITION
OF
SHARES
TAX
BY
HOST
STATES.—
In the case of a branch of an out-of-State bank which
results from an interstate merger transaction, a propor-
tionate amount of the value of the shares of the out-of-
State bank may be subject to any bank shares tax levied
or imposed by the host State, or any political subdivision
of such host State that imposes such tax based upon a
method adopted by the host State, which may include
allocation and apportionment.
‘‘(2) APPLICABILITY OF ANTITRUST LAWS.—No provision of
this section shall be construed as affecting—
‘‘(A) the applicability of the antitrust laws; or
‘‘(B) the applicability, if any, of any State law which
is similar to the antitrust laws.
‘‘(3) RESERVATION OF CERTAIN RIGHTS TO STATES.—No provi-
sion of this section shall be construed as limiting in any way
the right of a State to—
‘‘(A) determine the authority of State banks chartered
by that State to establish and maintain branches; or
‘‘(B) supervise, regulate, and examine State banks
chartered by that State.
‘‘(4) STATE-IMPOSED NOTICE REQUIREMENTS.—A host State
may impose any notification or reporting requirement on a
branch of an out-of-State bank if the requirement—
‘‘(A) does not discriminate against out-of-State banks
or bank holding companies; and
‘‘(B) is not preempted by any Federal law regarding
the same subject.
‘‘(d) OPERATIONS OF THE RESULTING BANK.—
‘‘(1) CONTINUED OPERATIONS.—A resulting bank may, sub-
ject to the approval of the appropriate Federal banking agency,
retain and operate, as a main office or a branch, any office
that any bank involved in an interstate merger transaction
was operating as a main office or a branch immediately before
the merger transaction.
‘‘(2) ADDITIONAL BRANCHES.—Following the consummation
of any interstate merger transaction, the resulting bank may
establish, acquire, or operate additional branches at any loca-
H. R. 3841—11
tion where any bank involved in the transaction could have
established, acquired, or operated a branch under applicable
Federal or State law if such bank had not been a party to
the merger transaction.
‘‘(3) CERTAIN CONDITIONS AND COMMITMENTS CONTINUED.—
If, as a condition for the acquisition of a bank by an out-
of-State bank holding company before the date of the enactment
of the Riegle-Neal Interstate Banking and Branching Efficiency
Act of 1994—
‘‘(A) the home State of the acquired bank imposed
conditions on such acquisition by such out-of-State bank
holding company; or
‘‘(B) the bank holding company made commitments
to such State in connection with the acquisition,
the State may enforce such conditions and commitments with
respect to such bank holding company or any affiliated succes-
sor company which controls a bank or branch in such State
as a result of an interstate merger transaction to the same
extent as the State could enforce such conditions or commit-
ments against the bank holding company before the consumma-
tion of the merger transaction.
‘‘(e) EXCEPTION
FOR BANKS
IN DEFAULT
OR
IN DANGER
OF
DEFAULT.—If an application under subsection (a)(1) for approval
of a merger transaction which involves 1 or more banks in default
or in danger of default or with respect to which the Corporation
provides assistance under section 13(c), the responsible agency may
approve such application without regard to subsection (b), or para-
graph (2), (4), or (5) of subsection (a).
‘‘(f) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
‘‘(1) ADEQUATELY
CAPITALIZED.—The term ‘adequately
capitalized’ has the same meaning as in section 38.
‘‘(2) ANTITRUST LAWS.—The term ‘antitrust laws’—
‘‘(A) has the same meaning as in subsection (a) of
the first section of the Clayton Act; and
‘‘(B) includes section 5 of the Federal Trade Commis-
sion Act to the extent such section 5 relates to unfair
methods of competition.
‘‘(3) BRANCH.—The term ‘branch’ means any domestic
branch.
‘‘(4) HOME STATE.—The term ‘home State’—
‘‘(A) means—
‘‘(i) with respect to a national bank, the State
in which the main office of the bank is located; and
‘‘(ii) with respect to a State bank, the State by
which the bank is chartered; and
‘‘(B) with respect to a bank holding company, has the
same meaning as in section 2(o)(4) of the Bank Holding
Company Act of 1956.
‘‘(5) HOST
STATE.—The term ‘host State’ means, with
respect to a bank, a State, other than the home State of
the bank, in which the bank maintains, or seeks to establish
and maintain, a branch.
‘‘(6) INTERSTATE MERGER TRANSACTION.—The term ‘inter-
state merger transaction’ means any merger transaction
approved pursuant to subsection (a)(1).
H. R. 3841—12
‘‘(7) MERGER TRANSACTION.—The term ‘merger transaction’
has the meaning determined under section 18(c)(3).
‘‘(8) OUT-OF-STATE
BANK.—The term ‘out-of-State bank’
means, with respect to any State, a bank whose home State
is another State.
‘‘(9) OUT-OF-STATE
BANK
HOLDING
COMPANY.—The term
‘out-of-State bank holding company’ means, with respect to
any State, a bank holding company whose home State is
another State.
‘‘(10) RESPONSIBLE AGENCY.—The term ‘responsible agency’
means the agency determined in accordance with section
18(c)(2) with respect to a merger transaction.
‘‘(11) RESULTING BANK.—The term ‘resulting bank’ means
a bank that has resulted from an interstate merger transaction
under this section.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) REVISED STATUTES.—Section 5155 of the Revised Stat-
utes (12 U.S.C. 36) is amended—
(A) by redesignating subsections (d) through (h) as
subsections (h) through (l), respectively; and
(B) by inserting after subsection (c) the following new
subsections:
‘‘(d) BRANCHES RESULTING FROM INTERSTATE MERGER TRANS-
ACTIONS.—A national bank resulting from an interstate merger
transaction (as defined in section 44(f)(6) of the Federal Deposit
Insurance Act) may maintain and operate a branch in a State
other than the home State (as defined in subsection (g)(3)(B)) of
such bank in accordance with section 44 of the Federal Deposit
Insurance Act.
‘‘(e) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES.—
‘‘(1) IN GENERAL.—Effective June 1, 1997, a national bank
may not acquire, establish, or operate a branch in any State
other than the bank’s home State (as defined in subsection
(g)(3)(B)) or a State in which the bank already has a branch
unless the acquisition, establishment, or operation of such
branch in such State by such national bank is authorized
under this section or section 13(f), 13(k), or 44 of the Federal
Deposit Insurance Act.
‘‘(2) RETENTION OF BRANCHES.—In the case of a national
bank which relocates the main office of such bank from 1
State to another State after May 31, 1997, the bank may
retain and operate branches within the State which was the
bank’s home State (as defined in subsection (g)(3)(B)) before
the relocation of such office only to the extent the bank would
be authorized, under this section or any other provision of
law referred to in paragraph (1), to acquire, establish, or com-
mence to operate a branch in such State if—
‘‘(A) the bank had no branches in such State; or
‘‘(B) the branch resulted from—
‘‘(i) an interstate merger transaction approved
pursuant to section 44 of the Federal Deposit Insurance
Act; or
‘‘(ii) a transaction after May 31, 1997, pursuant
to which the bank received assistance from the Federal
Deposit Insurance Corporation under section 13(c) of
such Act.
‘‘(f) LAW APPLICABLE TO INTERSTATE BRANCHING OPERATIONS.—
H. R. 3841—13
‘‘(1) LAW APPLICABLE TO NATIONAL BANK BRANCHES.—
‘‘(A) IN GENERAL.—The laws of the host State regarding
community reinvestment, consumer protection, fair lending,
and establishment of intrastate branches shall apply to
any branch in the host State of an out-of-State national
bank to the same extent as such State laws apply to
a branch of a bank chartered by that State, except—
‘‘(i) when Federal law preempts the application
of such State laws to a national bank; or
‘‘(ii) when the Comptroller of the Currency deter-
mines that the application of such State laws would
have a discriminatory effect on the branch in compari-
son with the effect the application of such State laws
would have with respect to branches of a bank char-
tered by the host State.
‘‘(B) ENFORCEMENT OF APPLICABLE STATE LAWS.—The
provisions of any State law to which a branch of a national
bank is subject under this paragraph shall be enforced,
with respect to such branch, by the Comptroller of the
Currency.
‘‘(2) TREATMENT OF BRANCH AS BANK.—All laws of a host
State, other than the laws regarding community reinvestment,
consumer protection, fair lending, establishment of intrastate
branches, and the application or administration of any tax
or method of taxation, shall apply to a branch (in such State)
of an out-of-State national bank to the same extent as such
laws would apply if the branch were a national bank the
main office of which is in such State.
‘‘(3) RULE OF CONSTRUCTION.—No provision of this sub-
section may be construed as affecting the legal standards for
preemption of the application of State law to national banks.’’.
(2) ACT
OF
MAY
1, 1886.—Section 2 of the Act entitled
‘‘An Act to enable national banking associations to increase
their capital stock and to change their names and locations.’’
and approved May 1, 1886 (12 U.S.C. 30) is amended by adding
at the end the following new subsection:
‘‘(c) COORDINATION WITH REVISED STATUTES.—In the case of
a national bank which relocates the main office of such bank from
1 State to another State after May 31, 1997, the bank may retain
and operate branches within the State from which the bank
relocated such office only to the extent authorized in section
5155(e)(2) of the Revised Statutes.’’.
(3) FEDERAL DEPOSIT INSURANCE ACT.—
(A) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES
OF STATE NONMEMBER BANKS.—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:
‘‘(3) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES.—
‘‘(A) IN
GENERAL.—Effective June 1, 1997, a State
nonmember bank may not acquire, establish, or operate
a branch in any State other than the bank’s home State
(as defined in section 44(f)(4)) or a State in which the
bank already has a branch unless the acquisition, establish-
ment, or operation of a branch in such State by a State
nonmember bank is authorized under this subsection or
section 13(f), 13(k), or 44.
H. R. 3841—14
‘‘(B) RETENTION OF BRANCHES.—In the case of a State
nonmember bank which relocates the main office of such
bank from 1 State to another State after May 31, 1997,
the bank may retain and operate branches within the State
which was the bank’s home State (as defined in section
44(f)(4)) before the relocation of such office only to the
extent the bank would be authorized, under this section
or any other provision of law referred to in subparagraph
(A), to acquire, establish, or commence to operate a branch
in such State if—
‘‘(i) the bank had no branches in such State; or
‘‘(ii) the branch resulted from—
‘‘(I) an interstate merger transaction approved
pursuant to section 44; or
‘‘(II) a transaction after May 31, 1997, pursu-
ant to which the bank received assistance from
the Corporation under section 13(c).’’.
(B) ACTIVITIES OF BRANCHES OF STATE BANKS RESULT-
ING FROM INTERSTATE MERGER TRANSACTIONS.—Section 24
of the Federal Deposit Insurance Act (12 U.S.C. 1831a)
is amended by adding at the end the following new sub-
section:
‘‘(j) ACTIVITIES OF BRANCHES OF OUT-OF-STATE BANKS.—
‘‘(1) IN GENERAL.—The laws of a host State, including laws
regarding community reinvestment, consumer protection, fair
lending, and establishment of intrastate branches, shall apply
to any branch in the host State of an out-of-State State bank
to the same extent as such State laws apply to a branch
of a bank chartered by that State.
‘‘(2) ACTIVITIES OF BRANCHES.—An insured State bank that
establishes a branch in a host State may not conduct any
activity at such branch that is not permissible for a bank
chartered by the host State.
‘‘(3) DEFINITIONS.—The terms ‘host State’, ‘interstate
merger transaction’, and ‘out-of-State bank’ have the same
meanings as in section 44(f).’’.
(4) ACT OF NOVEMBER 7, 1918.—The Act entitled ‘‘An Act
to provide for the consolidation of the national banking associa-
tions.’’ and approved November 7, 1918 (12 U.S.C. 215 et seq.)
is amended—
(A) by redesignating section 2 as section 3;
(B) by redesignating section 3 as section 5;
(C) in the 1st section, by striking ‘‘That (a) any national
banking association’’ and inserting the following:
‘‘SECTION 1. SHORT TITLE.
‘‘This Act may be cited as the ‘National Bank Consolidation
and Merger Act’.
‘‘SEC. 2. CONSOLIDATION OF BANKS WITHIN THE SAME STATE.
‘‘(a) IN GENERAL.—Any national bank’’; and
(D) by inserting after section 3 (as so redesignated
under subparagraph (A) of this paragraph) the following
new section:
‘‘SEC. 4. INTERSTATE CONSOLIDATIONS AND MERGERS.
‘‘(a) IN GENERAL.—A national bank may engage in a consolida-
tion or merger under this Act with an out-of-State bank if the
H. R. 3841—15
consolidation or merger is approved pursuant to section 44 of the
Federal Deposit Insurance Act.
‘‘(b) SCOPE OF APPLICATION.—Subsection (a) shall not apply
with respect to any consolidation or merger before June 1, 1997,
unless the home State of each bank involved in the transaction
has in effect a law described in section 44(a)(3) of the Federal
Deposit Insurance Act.
‘‘(c) DEFINITIONS.—The terms ‘home State’ and ‘out-of-State
bank’ have the same meaning as in section 44(f) of the Federal
Deposit Insurance Act.’’.
(5) HOME OWNERS’ LOAN ACT.—Section 3 of the Home Own-
ers’ Loan Act (12 U.S.C. 1462a) is amended—
(A) by redesignating subsections (f) through (i) as sub-
sections (g) through (j), respectively; and
(B) by inserting after subsection (e), the following new
subsection:
‘‘(f) STATE HOMESTEAD PROVISIONS.—No provision of this Act
or any other provision of law administered by the Director shall
be construed as superseding any homestead provision of any State
constitution, including any implementing State statute, in effect
on the date of enactment of the Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994, or any subsequent amend-
ment to such a State constitutional or statutory provision in effect
on such date, that exempts the homestead of any person from
foreclosure, or forced sale, for the payment of all debts, other
than a purchase money obligation relating to the homestead, taxes
due on the homestead, or an obligation arising from work and
material used in constructing improvements on the homestead.’’.
SEC. 103. STATE ‘‘OPT-IN’’ ELECTION TO PERMIT INTERSTATE BRANCH-
ING THROUGH DE NOVO BRANCHES.
(a) NATIONAL BANKS.—Section 5155 of the Revised Statutes
(12 U.S.C. 36) is amended by inserting after subsection (f) (as
added by section 102(b)) the following new subsection:
‘‘(g) STATE ‘OPT-IN’ ELECTION TO PERMIT INTERSTATE BRANCH-
ING THROUGH DE NOVO BRANCHES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Comptroller
of the Currency may approve an application by a national
bank to establish and operate a de novo branch in a State
(other than the bank’s home State) in which the bank does
not maintain a branch if—
‘‘(A) there is in effect in the host State a law that—
‘‘(i) applies equally to all banks; and
‘‘(ii) expressly permits all out-of-State banks to
establish de novo branches in such State; and
‘‘(B) the conditions established in, or made applicable
to this paragraph by, paragraph (2) are met.
‘‘(2) CONDITIONS
ON
ESTABLISHMENT
AND
OPERATION
OF
INTERSTATE BRANCH.—
‘‘(A) ESTABLISHMENT.—An application by a national
bank to establish and operate a de novo branch in a host
State shall be subject to the same requirements and condi-
tions to which an application for an interstate merger
transaction is subject under paragraphs (1), (3), and (4)
of section 44(b) of the Federal Deposit Insurance Act.
‘‘(B) OPERATION.—Subsections (c) and (d)(2) of section
44 of the Federal Deposit Insurance Act shall apply with
H. R. 3841—16
respect to each branch of a national bank which is estab-
lished and operated pursuant to an application approved
under this subsection in the same manner and to the
same extent such provisions of such section 44 apply to
a branch of a national bank which resulted from an inter-
state merger transaction approved pursuant to such section
44.
‘‘(3) DEFINITIONS.—The following definitions shall apply for
purposes of this section:
‘‘(A) DE
NOVO
BRANCH.—The term ‘de novo branch’
means a branch of a national bank which—
‘‘(i) is originally established by the national bank
as a branch; and
‘‘(ii) does not become a branch of such bank as
a result of—
‘‘(I) the acquisition by the bank of an insured
depository institution or a branch of an insured
depository institution; or
‘‘(II) the conversion, merger, or consolidation
of any such institution or branch.
‘‘(B) HOME STATE.—The term ‘home State’ means the
State in which the main office of a national bank is located.
‘‘(C) HOST STATE.—The term ‘host State’ means, with
respect to a bank, a State, other than the home State
of the bank, in which the bank maintains, or seeks to
establish and maintain, a branch.’’.
(b) STATE BANKS.—Section 18(d) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1828(d)) is amended by inserting after para-
graph (3) (as added by section 102(b)(3) of this title) the following
new paragraph:
‘‘(4) STATE
‘OPT-IN’ 
ELECTION
TO
PERMIT
INTERSTATE
BRANCHING THROUGH DE NOVO BRANCHES.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
Corporation may approve an application by an insured
State nonmember bank to establish and operate a de novo
branch in a State (other than the bank’s home State)
in which the bank does not maintain a branch if—
‘‘(i) there is in effect in the host State a law that—
‘‘(I) applies equally to all banks; and
‘‘(II) expressly permits all out-of-State banks
to establish de novo branches in such State; and
‘‘(ii) the conditions established in, or made
applicable to this paragraph by, subparagraph (B) are
met.
‘‘(B) CONDITIONS ON ESTABLISHMENT AND OPERATION
OF INTERSTATE BRANCH.—
‘‘(i) ESTABLISHMENT.—An application by an insured
State nonmember bank to establish and operate a de
novo branch in a host State shall be subject to the
same requirements and conditions to which an applica-
tion for a merger transaction is subject under para-
graphs (1), (3), and (4) of section 44(b).
‘‘(ii) OPERATION.—Subsections (c) and (d)(2) of sec-
tion 44 shall apply with respect to each branch of
an insured State nonmember bank which is established
and operated pursuant to an application approved
under this paragraph in the same manner and to the
H. R. 3841—17
same extent such provisions of such section apply to
a branch of a State bank which resulted from a merger
transaction under such section 44.
‘‘(C) DE NOVO BRANCH DEFINED.—For purposes of this
paragraph, the term ‘de novo branch’ means a branch of
a State bank which—
‘‘(i) is originally established by the State bank
as a branch; and
‘‘(ii) does not become a branch of such bank as
a result of—
‘‘(I) the acquisition by the bank of an insured
depository institution or a branch of an insured
depository institution; or
‘‘(II) the conversion, merger, or consolidation
of any such institution or branch.
‘‘(D) HOME
STATE
DEFINED.—The term ‘home State’
means the State by which a State bank is chartered.
‘‘(E) HOST
STATE
DEFINED.—The term ‘host State’
means, with respect to a bank, a State, other than the
home State of the bank, in which the bank maintains,
or seeks to establish and maintain, a branch.’’.
SEC. 104. BRANCHING BY FOREIGN BANKS.
(a) IN GENERAL.—Section 5(a) of the International Banking
Act of 1978 (12 U.S.C. 3103(a)) is amended to read as follows:
‘‘(a) INTERSTATE BRANCHING AND AGENCY OPERATIONS.—
‘‘(1) FEDERAL BRANCH OR AGENCY.—Subject to the provi-
sions of this Act and with the prior written approval by the
Board and the Comptroller of the Currency of an application,
a foreign bank may establish and operate a Federal branch
or agency in any State outside the home State of such foreign
bank to the extent that the establishment and operation of
such branch would be permitted under section 5155(g) of the
Revised Statutes or section 44 of the Federal Deposit Insurance
Act if the foreign bank were a national bank whose home
State is the same State as the home State of the foreign
bank.
‘‘(2) STATE BRANCH OR AGENCY.—Subject to the provisions
of this Act and with the prior written approval by the Board
and the appropriate State bank supervisor of an application,
a foreign bank may establish and operate a State branch or
agency in any State outside the home State of such foreign
bank to the extent that such establishment and operation would
be permitted under section 18(d)(4) or 44 of the Federal Deposit
Insurance Act if the foreign bank were a State bank whose
home State is the same State as the home State of the foreign
bank.
‘‘(3) CRITERIA
FOR
DETERMINATION.—In approving an
application under paragraph (1) or (2), the Board and (in the
case of an application under paragraph (1)) the Comptroller
of the Currency—
‘‘(A) shall apply the standards applicable to the
establishment of a foreign bank office in the United States
under section 7(d);
‘‘(B) may not approve an application unless the Board
and (in the case of an application under paragraph (1))
the Comptroller of the Currency—
H. R. 3841—18
‘‘(i) determine that the foreign bank’s financial
resources, including the capital level of the bank, are
equivalent to those required for a domestic bank to
be approved for branching under section 5155 of the
Revised Statutes and section 44 of the Federal Deposit
Insurance Act; and
‘‘(ii) consult with the Secretary of the Treasury
regarding capital equivalency; and
‘‘(C) shall apply the same requirements and conditions
to which an application for an interstate merger transaction
is subject under paragraphs (1), (3), and (4) of section
44(b) of the Federal Deposit Insurance Act.
‘‘(4) OPERATION.—Subsections (c) and (d)(2) of section 44
of the Federal Deposit Insurance Act shall apply with respect
to each branch and agency of a foreign bank which is estab-
lished and operated pursuant to an application approved under
this subsection in the same manner and to the same extent
such provisions of such section apply to a domestic branch
of a national or State bank (as such terms are defined in
section 3 of such Act) which resulted from a merger transaction
under such section 44.
‘‘(5) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES.—
Except as provided in this section, a foreign bank may not,
directly or indirectly, acquire, establish, or operate a branch
or agency in any State other than the home State of such
bank.
‘‘(6) REQUIREMENT
FOR
A
SEPARATE
SUBSIDIARY.—If the
Board or the Comptroller of the Currency, taking into account
differing regulatory or accounting standards, finds that adher-
ence by a foreign bank to capital requirements equivalent to
those imposed under section 5155 of the Revised Statutes and
section 44 of the Federal Deposit Insurance Act could be verified
only if the banking activities of such bank in the United States
are carried out in a domestic banking subsidiary within the
United States, the Board and (in the case of an application
under paragraph (1)) the Comptroller of the Currency may
approve an application under paragraph (1) or (2) subject to
a requirement that the foreign bank or company controlling
the foreign bank establish a domestic banking subsidiary in
the United States.
‘‘(7) ADDITIONAL AUTHORITY FOR INTERSTATE BRANCHES AND
AGENCIES OF FOREIGN BANKS.—Notwithstanding paragraphs (1)
and (2), a foreign bank may, with the approval of the Board
and the Comptroller of the Currency, establish and operate
a Federal branch or Federal agency or, with the approval
of the Board and the appropriate State bank supervisor, a
State branch or State agency in any State outside the foreign
bank’s home State if—
‘‘(A) the establishment and operation of a branch or
agency is expressly permitted by the State in which the
branch or agency is to be established; and
‘‘(B) in the case of a Federal or State branch, the
branch receives only such deposits as would be permissible
for a corporation organized under section 25A of the Federal
Reserve Act.
‘‘(9) HOME STATE OF DOMESTIC BANK DEFINED.—For pur-
poses of this subsection, the term ‘home State’ means—
H. R. 3841—19
‘‘(A) with respect to a national bank, the State in
which the main office of the bank is located; and
‘‘(B) with respect to a State bank, the State by which
the bank is chartered.’’.
(b) CONTINUED AUTHORITY FOR LIMITED BRANCHES, AGENCIES,
OR COMMERCIAL LENDING COMPANIES.—Section 5(b) of the Inter-
national Banking Act of 1978 (12 U.S.C. 3103(b)) is amended by
adding at the end the following new sentence: ‘‘Notwithstanding
subsection (a), a foreign bank may continue to operate, after the
enactment of the Riegle-Neal Interstate Banking and Branching
Efficiency Act of 1994, any Federal branch, State branch, Federal
agency, State agency, or commercial lending company subsidiary
which such bank was operating on the day before the date of
the enactment of such Act to the extent the branch, agency, or
subsidiary continues, after the enactment of such Act, to engage
in operations which were lawful under the laws in effect on the
day before such date.’’.
(c) CLARIFICATION OF BRANCHING RULES IN THE CASE OF A
FOREIGN BANK WITH A DOMESTIC BANK SUBSIDIARY.—Section 5
of the International Banking Act of 1978 (12 U.S.C. 3103) is
amended by adding at the end the following new subsection:
‘‘(d) CLARIFICATION OF BRANCHING RULES IN THE CASE OF A
FOREIGN BANK WITH A DOMESTIC BANK SUBSIDIARY.—In the case
of a foreign bank that has a domestic bank subsidiary within
the United States—
‘‘(1) the fact that such bank controls a domestic bank shall
not affect the authority of the foreign bank to establish Federal
and State branches or agencies to the extent permitted under
subsection (a); and
‘‘(2) the fact that the domestic bank is controlled by a
foreign bank which has Federal or State branches or agencies
in States other than the home State of such domestic bank
shall not affect the authority of the domestic bank to establish
branches outside the home State of the domestic bank to the
extent permitted under section 5155(g) of the Revised Statutes
or section 18(d)(4) or 44 of the Federal Deposit Insurance Act,
as the case may be.’’.
(d) HOME STATE DETERMINATIONS.—Section 5(c) of the Inter-
national Banking Act of 1978 (12 U.S.C. 3103(c)) is amended to
read as follows:
‘‘(c) DETERMINATION OF HOME STATE OF FOREIGN BANK.—For
the purposes of this section—
‘‘(1) in the case of a foreign bank that has any branch,
agency, subsidiary commercial lending company, or subsidiary
bank in more than 1 State, the home State of the foreign
bank is the 1 State of such States which is selected to be
the home State by the foreign bank or, in default of any
such selection, by the Board; and
‘‘(2) in the case of a foreign bank that does not have
a branch, agency, subsidiary commercial lending company, or
subsidiary bank in more than 1 State, the home State of the
foreign bank is the State in which the foreign bank has a
branch, agency, subsidiary commercial lending company, or
subsidiary bank.’’.
H. R. 3841—20
SEC. 105. COORDINATION OF EXAMINATION AUTHORITY.
Section 10 of the Federal Deposit Insurance Act (12 U.S.C.
1820) is amended by inserting after subsection (g) the following
new subsection:
‘‘(h) COORDINATION OF EXAMINATION AUTHORITY.—
‘‘(1) IN GENERAL.—The appropriate State bank supervisor
of a host State may examine a branch operated in such State
by an out-of-State insured State bank that resulted from an
interstate merger transaction approved under section 44 or
a branch established in such State pursuant to section 5155(g)
of the Revised Statutes or section 18(d)(4)—
‘‘(A) for the purpose of determining compliance with
host State laws, including those that govern banking,
community reinvestment, fair lending, consumer protection,
and permissible activities; and
‘‘(B) to ensure that the activities of the branch are
not conducted in an unsafe or unsound manner.
‘‘(2) ENFORCEMENT.—If the State bank supervisor of a host
State determines that there is a violation of the law of the
host State concerning the activities being conducted by a branch
described in paragraph (1) or that the branch is being operated
in an unsafe and unsound manner, the State bank supervisor
of the host State or, to the extent authorized by the law of
the host State, a State law enforcement officer may undertake
such enforcement actions and proceedings as would be per-
mitted under the law of the host State as if the branch were
a bank chartered by that host State.
‘‘(3) COOPERATIVE
AGREEMENT.—The State bank super-
visors from 2 or more States may enter into cooperative agree-
ments to facilitate State regulatory supervision of State banks,
including cooperative agreements relating to the coordination
of examinations and joint participation in examinations.
‘‘(4) FEDERAL REGULATORY AUTHORITY.—No provision of this
subsection shall be construed as limiting in any way the author-
ity of an appropriate Federal banking agency to examine or
to take any enforcement actions or proceedings against any
bank or branch of a bank for which the agency is the appro-
priate Federal banking agency.’’.
SEC. 106. BRANCH CLOSURES.
Section 42 of the Federal Deposit Insurance Act (12 U.S.C.
1831r–1) is amended by adding at the end the following new sub-
section:
‘‘(d) BRANCH CLOSURES IN INTERSTATE BANKING OR BRANCHING
OPERATIONS.—
‘‘(1) NOTICE REQUIREMENTS.—In the case of an interstate
bank which proposes to close any branch in a low- or moderate-
income area, the notice required under subsection (b)(2) shall
contain the mailing address of the appropriate Federal banking
agency and a statement that comments on the proposed closing
of such branch may be mailed to such agency.
‘‘(2) ACTION REQUIRED BY APPROPRIATE FEDERAL BANKING
AGENCY.—If, in the case of a branch referred to in para-
graph (1)—
‘‘(A) a person from the area in which such branch
is located—
H. R. 3841—21
‘‘(i) submits a written request relating to the clos-
ing of such branch to the appropriate Federal banking
agency; and
‘‘(ii) includes a statement of specific reasons for
the request, including a discussion of the adverse effect
of such closing on the availability of banking services
in the area affected by the closing of the branch; and
‘‘(B) the agency concludes that the request is not
frivolous,
the agency shall consult with community leaders in the affected
area and convene a meeting of representatives of the agency
and other interested depository institution regulatory agencies
with community leaders in the affected area and such other
individuals, organizations, and depository institutions (as
defined in section 19(b)(1)(A) of the Federal Reserve Act) as
the agency may determine, in the discretion of the agency,
to be appropriate, to explore the feasibility of obtaining ade-
quate alternative facilities and services for the affected area,
including the establishment of a new branch by another deposi-
tory institution, the chartering of a new depository institution,
or the establishment of a community development credit union,
following the closing of the branch.
‘‘(3) NO EFFECT ON CLOSING.—No action by the appropriate
Federal banking agency under paragraph (2) shall affect the
authority of an interstate bank to close a branch (including
the timing of such closing) if the requirements of subsections
(a) and (b) have been met by such bank with respect to the
branch being closed.
‘‘(4) DEFINITIONS.—For purposes of this subsection, the fol-
lowing definitions shall apply:
‘‘(A) INTERSTATE BANK DEFINED.—The term ‘interstate
bank’ means a bank which maintains branches in more
than 1 State.
‘‘(B) LOW- OR MODERATE-INCOME AREA.—The term ‘low-
or moderate-income area’ means a census tract for which
the median family income is—
‘‘(i) less than 80 percent of the median family
income for the metropolitan statistical area (as des-
ignated by the Director of the Office of Management
and Budget) in which the census tract is located; or
‘‘(ii) in the case of a census tract which is not
located in a metropolitan statistical area, less than
80 percent of the median family income for the State
in which the census tract is located, as determined
without taking into account family income in metropoli-
tan statistical areas in such State.’’.
SEC. 107. EQUALIZING COMPETITIVE OPPORTUNITIES FOR UNITED
STATES AND FOREIGN BANKS.
(a) REGULATORY OBJECTIVES.—Section 6 of the International
Banking Act of 1978 (12 U.S.C. 3104) is amended—
(1) by redesignating subsections (a) through (c) as sub-
sections (b) through (d), respectively; and
(2) by inserting after ‘‘SEC. 6’’ the following new subsection:
‘‘(a) OBJECTIVE.—In implementing this section, the Comptroller
and the Federal Deposit Insurance Corporation shall each, by afford-
ing equal competitive opportunities to foreign and United States
H. R. 3841—22
banking organizations in their United States operations, ensure
that foreign banking organizations do not receive an unfair competi-
tive advantage over United States banking organizations.’’.
(b) REVIEW OF REGULATIONS.—
(1) IN GENERAL.—Each Federal banking agency, after con-
sultation with the other Federal banking agencies to assure
uniformity, shall revise the regulations adopted by such agency
under section 6 of the International Banking Act of 1978 to
ensure that the regulations are consistent with the objective
set forth in section 6(a) of the International Banking Act of
1978.
(2) SPECIFIC FACTORS.—In carrying out paragraph (1), each
Federal banking agency shall consider whether to permit an
uninsured branch of a foreign bank to accept initial deposits
of less than $100,000 only from—
(A) individuals who are not citizens or residents of
the United States at the time of the initial deposit;
(B) individuals who—
(i) are not citizens of the United States;
(ii) are residents of the United States; and
(iii) are employed by a foreign bank, foreign busi-
ness, foreign government, or recognized international
organization;
(C) persons to whom the branch or foreign bank has
extended credit or provided other nondeposit banking
services;
(D) foreign businesses and large United States
businesses;
(E) foreign governmental units and recognized inter-
national organizations; and
(F) persons who are depositing funds in connection
with the issuance of a financial instrument by the branch
for the transmission of funds.
(3) REDUCTION IN REGULATORY DE MINIMIS EXEMPTION.—
In carrying out paragraph (1), each Federal banking agency
shall limit any exemption which is—
(A) available under any regulation prescribed pursuant
to section 6(d) of the International Banking Act of 1978
providing for the acceptance of initial deposits of less than
$100,000 by an uninsured branch of a foreign bank; and
(B) based on a percentage of the average deposits at
such branch;
to not more than 1 percent of the average deposits at such
branch.
(4) ADDITIONAL
RELEVANT
CONSIDERATIONS.—In carrying
out paragraph (1), each Federal banking agency shall also
consider the importance of maintaining and improving the
availability of credit to all sectors of the United States economy,
including the international trade finance sector of the United
State economy.
(5) DEADLINE
FOR
PRESCRIBING
REVISED
REGULATIONS.—
Each Federal banking agency—
(A) shall publish final regulations under paragraph
(1) in the Federal Register not later than 12 months after
the date of enactment of this Act; and
(B) may establish reasonable transition rules to facili-
tate any termination of any deposit-taking activities that
H. R. 3841—23
were permissible under regulations that were in effect
before the date of enactment of this Act.
(6) DEFINITIONS.—For purposes of this subsection—
(A) the term ‘‘Federal banking agency’’ means—
(i) the Comptroller of the Currency with respect
to Federal branches of foreign banks; and
(ii) the Federal Deposit Insurance Corporation
with respect to State branches of foreign banks; and
(B) the term ‘‘uninsured branch’’ means a branch of
a foreign bank that is not an insured branch, as defined
in section 3(s)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(s)(3)).
(c) AMENDMENT AFFIRMING THAT CONSUMER PROTECTION LAWS
APPLY TO FOREIGN BANKS.—Section 9(b) of the International Bank-
ing Act of 1978 (12 U.S.C. 3106a) is amended—
(1) in paragraph (1)—
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting after ‘‘which—’’ the following new
subparagraph:
‘‘(A) impose requirements that protect the rights of
consumers in financial transactions, to the extent that
the branch, agency, or commercial lending company
engages in activities that are subject to such laws;’’; and
(2) in paragraph (2)—
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting after ‘‘which—’’ the following new
subparagraph:
‘‘(A) impose requirements that protect the rights of
consumers in financial transactions, to the extent that
the branch, agency, or commercial lending company
engages in activities that are subject to such laws;’’.
(d) INSURED BANKS IN TERRITORIES NOT TREATED AS FOREIGN
BANKS FOR PURPOSES OF RETAIL DEPOSIT-TAKING RULE.—Section
6(d) of the International Banking Act of 1978 (12 U.S.C. 3104(c))
(as so redesignated by subsection (a)(1) of this section) is amended
by adding at the end the following new paragraph:
‘‘(3) INSURED
BANKS
IN
U.S. TERRITORIES.—For purposes
of this subsection, the term ‘foreign bank’ does not include
any bank organized under the laws of any territory of the
United States, Puerto Rico, Guam, American Samoa, or the
Virgin Islands the deposits of which are insured by the Federal
Deposit Insurance Corporation pursuant to the Federal Deposit
Insurance Act.’’.
(e) AMENDMENT RELATING TO SHELL BRANCHES.—
(1) IN GENERAL.—Section 7 of the International Banking
Act of 1978 (12 U.S.C. 3105) is amended by adding at the
end the following new subsection:
‘‘(k) MANAGEMENT OF SHELL BRANCHES.—
‘‘(1) TRANSACTIONS
PROHIBITED.—A branch or agency of
a foreign bank shall not manage, through an office of the
foreign bank which is located outside the United States and
is managed or controlled by such branch or agency, any type
of activity that a bank organized under the laws of the United
States, any State, or the District of Columbia is not permitted
H. R. 3841—24
to manage at any branch or subsidiary of such bank which
is located outside the United States.
‘‘(2) REGULATIONS.—Any regulations promulgated to carry
out this section—
‘‘(A) shall be promulgated in accordance with section
13; and
‘‘(B) shall be uniform, to the extent practicable.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall become effective at the end of the 180-day period
beginning on the date of enactment of this Act.
(f) MEETING COMMUNITY CREDIT NEEDS.—Section 5(a) of the
International Banking Act of 1978 (12 U.S.C. 3103(a)) (as amended
by section 104 of this Act) is amended by inserting after paragraph
(7) the following new paragraph:
‘‘(8) CONTINUING REQUIREMENT FOR MEETING COMMUNITY
CREDIT NEEDS AFTER INITIAL INTERSTATE ENTRY BY ACQUISI-
TION.—
‘‘(A) IN GENERAL.—If a foreign bank acquires a bank
or a branch of a bank, in a State in which the foreign
bank does not maintain a branch, and such acquired bank
is, or is part of, a regulated financial institution (as defined
in section 803 of the Community Reinvestment Act of 1977),
the Community Reinvestment Act of 1977 shall continue
to apply to each branch of the foreign bank which results
from the acquisition as if such branch were a regulated
financial institution.
‘‘(B) EXCEPTION
FOR
BRANCH
THAT
RECEIVES
ONLY
DEPOSITS PERMISSIBLE FOR AN EDGE ACT CORPORATION.—
Paragraph (1) shall not apply to any branch that receives
only such deposits as are permissible for a corporation
organized under section 25A of the Federal Reserve Act
to receive.’’.
SEC. 108. FEDERAL RESERVE BOARD STUDY ON BANK FEES.
(a) IN GENERAL.—Section 1002 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811
note) is amended to read as follows:
‘‘SEC. 1002. SURVEY OF BANK FEES AND SERVICES.
‘‘(a) ANNUAL SURVEY REQUIRED.—The Board of Governors of
the Federal Reserve System shall obtain a sample, which is rep-
resentative by geographic location and size of the institution, of—
‘‘(1) certain retail banking services provided by insured
depository institutions; and
‘‘(2) the fees, if any, which are imposed by such institutions
for providing any such service, including fees imposed for not
sufficient funds, deposit items returned, and automated teller
machine transactions.
‘‘(b) ANNUAL REPORT TO CONGRESS REQUIRED.—
‘‘(1) PREPARATION.—The Board of Governors of the Federal
Reserve System shall prepare a report of the results of each
survey conducted pursuant to subsection (a).
‘‘(2) CONTENTS
OF
THE
REPORT.—Each report prepared
pursuant to paragraph (1) shall include—
‘‘(A) a description of any discernible trend, in the
Nation as a whole and in each region, in the cost and
availability of retail banking services which delineates dif-
H. R. 3841—25
ferences on the basis of size of the institution and engage-
ment in multistate activity; and
‘‘(B) a description of the correlation, if any, among
the following factors:
‘‘(i) An increase or decrease in the amount of any
deposit insurance premium assessed by the Federal
Deposit Insurance Corporation against insured deposi-
tory institutions.
‘‘(ii) An increase or decrease in the amount of
the fees imposed by such institutions for providing
retail banking services.
‘‘(iii) A decrease in the availability of such services.
‘‘(3) SUBMISSION TO CONGRESS.—The Board of Governors
of the Federal Reserve System shall submit an annual report
to the Congress not later than September 1, 1995, and not
later than June 1 of each subsequent year.’’.
(b) SUNSET.—The requirements of subsection (a) shall not apply
after the end of the 7-year period beginning on the date of enactment
of this Act.
SEC. 109. PROHIBITION AGAINST DEPOSIT PRODUCTION OFFICES.
(a) REGULATIONS.—The appropriate Federal banking agencies
shall prescribe uniform regulations effective June 1, 1997, which
prohibit any out-of-State bank from using any authority to engage
in interstate branching pursuant to this title, or any amendment
made by this title to any other provision of law, primarily for
the purpose of deposit production.
(b) GUIDELINES
FOR MEETING CREDIT NEEDS.—Regulations
issued under subsection (a) shall include guidelines to ensure that
interstate branches operated by an out-of-State bank in a host
State are reasonably helping to meet the credit needs of the commu-
nities which the branches serve.
(c) LIMITATION ON OUT-OF-STATE LOANS.—
(1) LIMITATION.—Regulations issued under subsection (a)
shall require that, beginning no earlier than 1 year after
establishment or acquisition of an interstate branch or branches
in a host State by an out-of-State bank, if the appropriate
Federal banking agency for the out-of-State bank determines
that the bank’s level of lending in the host State relative
to the deposits from the host State (as reasonably determinable
from available information including the agency’s sampling of
the bank’s loan files during an examination or such data as
is otherwise available) is less than half the average of total
loans in the host State relative to total deposits from the
host State (as determinable from relevant sources) for all banks
the home State of which is such State—
(A) the appropriate Federal banking agency for the
out-of-State bank shall review the loan portfolio of the
bank and determine whether the bank is reasonably help-
ing to meet the credit needs of the communities served
by the bank in the host State; and
(B) if the agency determines that the out-of-State bank
is not reasonably helping to meet those needs—
(i) the agency may order that an interstate branch
or branches of such bank in the host State be closed
unless the bank provides reasonable assurances to the
satisfaction of the appropriate Federal banking agency
H. R. 3841—26
that the bank has an acceptable plan that will reason-
ably help to meet the credit needs of the communities
served by the bank in the host State, and
(ii) the out-of-State bank may not open a new
interstate branch in the host State unless the bank
provides reasonable assurances to the satisfaction of
the appropriate Federal banking agency that the bank
will reasonably help to meet the credit needs of the
community that the new branch will serve.
(2) CONSIDERATIONS.—In making a determination under
paragraph (1)(A), the appropriate Federal banking agency shall
consider—
(A) whether the interstate branch or branches of the
out-of-State bank were formerly part of a failed or failing
depository institution;
(B) whether the interstate branch was acquired under
circumstances where there was a low loan-to-deposit ratio
because of the nature of the acquired institution’s business
or loan portfolio;
(C) whether the interstate branch or branches of the
out-of-State bank have a higher concentration of commer-
cial or credit card lending, trust services, or other special-
ized activities;
(D) the ratings received by the out-of-State bank under
the Community Reinvestment Act of 1977;
(E) economic conditions, including the level of loan
demand, within the communities served by the interstate
branch or branches of the out-of-State bank; and
(F) the safe and sound operation and condition of the
out-of-State bank.
(3) BRANCH CLOSING PROCEDURE.—
(A) NOTICE REQUIRED.—Before exercising any authority
under paragraph (1)(B)(i), the appropriate Federal banking
agency shall issue to the bank a notice of the agency’s
intention to close an interstate branch or branches and
shall schedule a hearing.
(B) HEARING.—Section 8(h) of the Federal Deposit
Insurance Act shall apply to any proceeding brought under
this paragraph.
(d) APPLICATION.—This section shall apply with respect to any
interstate branch established or acquired in a host State pursuant
to this title or any amendment made by this title to any other
provision of law.
(e) DEFINITIONS.—For the purposes of this section, the following
definitions shall apply:
(1) APPROPRIATE FEDERAL BANKING AGENCY, BANK, STATE,
AND
STATE
BANK.—The terms ‘‘appropriate Federal banking
agency’’, ‘‘bank’’, ‘‘State’’, and ‘‘State bank’’ have the same mean-
ings as in section 3 of the Federal Deposit Insurance Act.
(2) HOME STATE.—The term ‘‘home State’’ means—
(A) in the case of a national bank, the State in which
the main office of the bank is located; and
(B) in the case of a State bank, the State by which
the bank is chartered.
(3) HOST STATE.—The term ‘‘host State’’ means a State
in which a bank establishes a branch other than the home
State of the bank.
H. R. 3841—27
(4) INTERSTATE
BRANCH.—The term ‘‘interstate branch’’
means a branch established pursuant to this title or any amend-
ment made by this title to any other provision of law.
(5) OUT-OF-STATE
BANK.—The term ‘‘out-of-State bank’’
means, with respect to any State, a bank the home State
of which is another State and, for purposes of this section,
includes a foreign bank, the home State of which is another
State.
SEC. 110. COMMUNITY REINVESTMENT ACT EVALUATION OF BANKS
WITH INTERSTATE BRANCHES.
(a) IN GENERAL.—Section 807 of the Community Reinvestment
Act of 1977 (12 U.S.C. 2906) is amended by adding at the end
the following new subsections:
‘‘(d) INSTITUTIONS WITH INTERSTATE BRANCHES.—
‘‘(1) STATE-BY-STATE EVALUATION.—In the case of a regu-
lated financial institution that maintains domestic branches
in 2 or more States, the appropriate Federal financial super-
visory agency shall prepare—
‘‘(A) a written evaluation of the entire institution’s
record of performance under this title, as required by sub-
sections (a), (b), and (c); and
‘‘(B) for each State in which the institution maintains
1 or more domestic branches, a separate written evaluation
of the institution’s record of performance within such State
under this title, as required by subsections (a), (b), and
(c).
‘‘(2) MULTISTATE METROPOLITAN AREAS.—In the case of a
regulated 
financial 
institution 
that 
maintains 
domestic
branches in 2 or more States within a multistate metropolitan
area, the appropriate Federal financial supervisory agency shall
prepare a separate written evaluation of the institution’s record
of performance within such metropolitan area under this title,
as required by subsections (a), (b), and (c). If the agency pre-
pares a written evaluation pursuant to this paragraph, the
scope of the written evaluation required under paragraph (1)(B)
shall be adjusted accordingly.
‘‘(3) CONTENT
OF
STATE
LEVEL
EVALUATION.—A written
evaluation prepared pursuant to paragraph (1)(B) shall—
‘‘(A) present the information required by subpara-
graphs (A) and (B) of subsection (b)(1) separately for each
metropolitan area in which the institution maintains 1
or more domestic branch offices and separately for the
remainder of the nonmetropolitan area of the State if the
institution maintains 1 or more domestic branch offices
in such nonmetropolitan area; and
‘‘(B) describe how the Federal financial supervisory
agency has performed the examination of the institution,
including a list of the individual branches examined.
‘‘(e) DEFINITIONS.—For purposes of this section the following
definitions shall apply:
‘‘(1) DOMESTIC BRANCH.—The term ‘domestic branch’ means
any branch office or other facility of a regulated financial
institution that accepts deposits, located in any State.
‘‘(2) METROPOLITAN AREA.—The term ‘metropolitan area’
means any primary metropolitan statistical area, metropolitan
statistical area, or consolidated metropolitan statistical area,
H. R. 3841—28
as defined by the Director of the Office of Management and
Budget, with a population of 250,000 or more, and any other
area designated as such by the appropriate Federal financial
supervisory agency.
‘‘(3) STATE.—The term ‘State’ has the same meaning as
in section 3 of the Federal Deposit Insurance Act.’’.
(b) SEPARATE PRESENTATION.—Section 807(b)(1) of the Commu-
nity Reinvestment Act of 1977 (12 U.S.C. 2906(b)(1)) is amended—
(1) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively;
(2) by striking ‘‘The public’’ and inserting the following:
‘‘(A) CONTENTS OF WRITTEN EVALUATION.—The public’’;
and
(3) by adding at the end the following new subparagraph:
‘‘(B) METROPOLITAN AREA DISTINCTIONS.—The informa-
tion required by clauses (i) and (ii) of subparagraph (A)
shall be presented separately for each metropolitan area
in which a regulated depository institution maintains one
or more domestic branch offices.’’.
SEC. 111. RESTATEMENT OF EXISTING LAW.
No provision of this title and no amendment made by this
title to any other provision of law shall be construed as affecting
in any way—
(1) the authority of any State or political subdivision of
any State to adopt, apply, or administer any tax or method
of taxation to any bank, bank holding company, or foreign
bank, or any affiliate of any such bank, bank holding company,
or foreign bank, to the extent that such tax or tax method
is otherwise permissible by or under the Constitution of the
United States or other Federal law;
(2) the right of any State, or any political subdivision
of any State, to impose or maintain a nondiscriminatory fran-
chise tax or other nonproperty tax instead of a franchise tax
in accordance with section 3124 of title 31, United States Code;
or
(3) the applicability of section 5197 of the Revised Statutes
or section 27 of the Federal Deposit Insurance Act.
SEC. 112. GAO REPORT ON DATA COLLECTION UNDER INTERSTATE
BRANCHING.
(a) IN GENERAL.—The Comptroller General of the United States
shall submit to the Congress, not later than 9 months after the
date of enactment of this Act, a report that—
(1) examines statutory and regulatory requirements for
insured depository institutions to collect and report deposit
and lending data; and
(2) determines what modifications to such requirements
are needed, so that the implementation of the interstate branch-
ing provisions contained in this title will result in no material
loss of information important to regulatory or congressional
oversight of insured depository institutions.
(b) CONSULTATION.—The Comptroller General, in preparing the
report required by this section, shall consult with individuals rep-
resenting the appropriate Federal banking agencies, insured deposi-
tory institutions, consumers, community groups, and other
interested parties.
H. R. 3841—29
(c) DEFINITIONS.—For purposes of this section, the terms
‘‘appropriate Federal banking agency’’ and ‘‘insured depository
institution’’ have the same meanings as in section 3 of the Federal
Deposit Insurance Act.
SEC. 113. MAXIMUM INTEREST RATE ON CERTAIN FMHA LOANS.
(a) IN GENERAL.—Section 307(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1927(a)) is amended—
(1) in paragraph (3)(A), by striking ‘‘Except’’ and inserting
‘‘Notwithstanding the provisions of the constitution or laws
of any State limiting the rate or amount of interest that may
be charged, taken, received, or reserved, except’’; and
(2) in paragraph (5)—
(A) by striking ‘‘(5) The’’ and inserting ‘‘(5)(A) Except
as provided in subparagraph (B), the’’; and
(B) by adding at the end the following new subpara-
graph:
‘‘(B) In the case of a loan made under section 310B as a
guaranteed loan, subparagraph (A) shall apply notwithstanding
the provisions of the constitution or laws of any State limiting
the rate or amount of interest that may be charged, taken, received,
or reserved.’’.
(b) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as provided in paragraphs (2)
and (3), the amendments made by subsection (a) shall apply
to a loan made, insured, or guaranteed under the Consolidated
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in
a State on or after the date of enactment of this Act.
(2) STATE OPTION.—Except as provided in paragraph (3),
the amendments made by subsection (a) shall not apply to
a loan made, insured, or guaranteed under the Consolidated
Farm and Rural Development Act in a State after the date
(that occurs during the 3-year period beginning on the date
of enactment of this Act) on which the State adopts a law
or certifies that the voters of the State have voted in favor
of a provision of the constitution or law of the State that
states that the State does not want the amendments made
by subsection (a) to apply with respect to loans made, insured,
or guaranteed under such Act in the State.
(3) TRANSITIONAL PERIOD.—In any case in which a State
takes an action described in paragraph (2), the amendments
made by subsection (a) shall continue to apply to a loan made,
insured, or guaranteed under the Consolidated Farm and Rural
Development Act in the State after the date the action was
taken pursuant to a commitment for the loan that was entered
into during the period beginning on the date of enactment
of this Act, and ending on the date on which the State takes
the action.
SEC. 114. NOTICE REQUIREMENTS FOR BANKING AGENCY DECISIONS
PREEMPTING STATE LAW.
Chapter 4 of title LXII of the Revised Statutes (12 U.S.C.
21 et seq.) is amended by adding at the end the following new
section:
H. R. 3841—30
‘‘SEC. 5244. INTERPRETATIONS CONCERNING PREEMPTION OF CER-
TAIN STATE LAWS.
‘‘(a) NOTICE
AND OPPORTUNITY
FOR COMMENT REQUIRED.—
Before issuing any opinion letter or interpretive rule, in response
to a request or upon the agency’s own motion, that concludes
that Federal law preempts the application to a national bank of
any State law regarding community reinvestment, consumer protec-
tion, fair lending, or the establishment of intrastate branches, or
before making a determination under section 5155(f)(1)(A)(ii) of
the Revised Statutes, the appropriate Federal banking agency (as
defined in section 3 of the Federal Deposit Insurance Act) shall—
‘‘(1) publish in the Federal Register notice of the preemption
or discrimination issue that the agency is considering (including
a description of each State law at issue);
‘‘(2) give interested parties not less than 30 days in which
to submit written comments; and
‘‘(3) in developing the final opinion letter or interpretive
rule issued by the agency, or making any determination under
section 5155(f)(1)(A)(ii) of the Revised Statutes, consider any
comments received.
‘‘(b) PUBLICATION REQUIRED.—The appropriate Federal banking
agency shall publish in the Federal Register—
‘‘(1) any final opinion letter or interpretive rule concluding
that Federal law preempts the application of any State law
regarding community reinvestment, consumer protection, fair
lending, or establishment of intrastate branches to a national
bank; and
‘‘(2) any determination under section 5155(f)(1)(A)(ii) of
the Revised Statutes.
‘‘(c) EXCEPTIONS.—
‘‘(1) NO NEW ISSUE OR SIGNIFICANT BASIS.—This section
shall not apply with respect to any opinion letter or interpretive
rule that—
‘‘(A) raises issues of Federal preemption of State law
that are essentially identical to those previously resolved
by the courts or on which the agency has previously issued
an opinion letter or interpretive rule; or
‘‘(B) responds to a request that contains no significant
legal basis on which to make a preemption determination.
‘‘(2) JUDICIAL, LEGISLATIVE, OR INTRAGOVERNMENTAL MATE-
RIALS.—This section shall not apply with respect to materials
prepared for use in judicial proceedings or submission to Con-
gress or a Member of Congress, or for intragovernmental use.
‘‘(3) EMERGENCY.—The appropriate Federal banking agency
may make exceptions to subsection (a) if—
‘‘(A) the agency determines in writing that the excep-
tion is necessary to avoid a serious and imminent threat
to the safety and soundness of any national bank; or
‘‘(B) the opinion letter or interpretive rule is issued
in connection with—
‘‘(i) an acquisition of 1 or more banks in default
or in danger of default (as such terms are defined
in section 3 of the Federal Deposit Insurance Act);
or
‘‘(ii) an acquisition with respect to which the Fed-
eral Deposit Insurance Corporation provides assistance
H. R. 3841—31
under section 13(c) of the Federal Deposit Insurance
Act.’’.
SEC. 115. MORATORIUM ON EXAMINATION FEES UNDER THE INTER-
NATIONAL BANKING ACT OF 1978.
(a) BRANCHES, AGENCIES, AND AFFILIATES.—Section 7(c)(1)(D)
of the International Banking Act of 1978 shall not apply with
respect to any examination under section 7(c)(1)(A) of such Act
which begins before or during the 3-year period beginning on July
25, 1994.
(b) REPRESENTATIVE OFFICES.—The provision of section 10(c)
of the International Banking Act of 1978 relating to the cost of
examinations under such section shall not apply with respect to
any examination under such section which begins before or during
the 3-year period beginning on July 25, 1994.
TITLE II—GENERAL PROVISIONS
SEC. 201. AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT AND
FEDERAL HOME LOAN BANK ACT.
(a) FEDERAL DEPOSIT INSURANCE ACT.—Section 11(d)(14) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(14)) is
amended by adding at the end the following new subparagraph:
‘‘(C) REVIVAL OF EXPIRED STATE CAUSES OF ACTION.—
‘‘(i) IN GENERAL.—In the case of any tort claim
described in clause (ii) for which the statute of limita-
tion applicable under State law with respect to such
claim has expired not more than 5 years before the
appointment of the Corporation as conservator or
receiver, the Corporation may bring an action as con-
servator or receiver on such claim without regard to
the expiration of the statute of limitation applicable
under State law.
‘‘(ii) CLAIMS DESCRIBED.—A tort claim referred to
in clause (i) is a claim arising from fraud, intentional
misconduct resulting in unjust enrichment, or inten-
tional misconduct resulting in substantial loss to the
institution.’’.
(b) FEDERAL HOME LOAN BANK ACT.—Section 21A(b)(14) of
the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(14)) is
amended by adding at the end the following new subparagraph:
‘‘(E) REVIVAL OF EXPIRED STATE CAUSES OF ACTION.—
In the case of any tort claim described in subparagraph
(A)(ii) for which the statute of limitation applicable under
State law with respect to such claim has expired not more
than 5 years before the appointment of the Corporation
as conservator or receiver, the Corporation may bring an
action as conservator or receiver on such claim without
regard to the expiration of the statute of limitation
applicable under State law.’’.
SEC. 202. SENSE OF THE SENATE CONCERNING MULTILATERAL
EXPORT CONTROLS.
(a) FINDINGS.—The Senate finds that—
(1) the United States and its allies have agreed that as
of March 31, 1994, the Coordinating Committee (hereafter
referred to as ‘‘COCOM’’), the multilateral body that controlled
H. R. 3841—32
strategic exports to the former Soviet Union and other Com-
munist States, ceased to exist;
(2) no successor has yet been established to replace the
COCOM;
(3) threats to United States security are posed by rogue
regimes that support terrorism as a matter of national policy;
(4) a critical element of the United States proposal for
a successor to COCOM is that supplier nations agree on a
list of militarily critical products and technologies that would
be denied to a handful of rogue regimes;
(5) some allies of the United States oppose this principle
and instead propose that such controls be left to ‘‘national
discretion’’, effectively replacing multilateral export controls
with a loose collection of unilateral export control policies which
would be adverse for United States security and economic
interests;
(6) multilateral controls are needed to thwart efforts of
Iran, Iraq, North Korea, Libya, and other rogue regimes, to
acquire arms and sensitive dual-use goods and technologies
that could contribute to their efforts to build weapons of mass
destruction; and
(7) the United States would be forced to make the difficult
choice of choosing between unilateral export controls under
the Export Administration Act of 1979, which would put Amer-
ican companies at a competitive disadvantage worldwide, or
allowing exports that could seriously harm the national security
interests of the United States.
(b) SENSE OF THE SENATE.—It is the sense of the Senate that—
(1) the President should work to achieve a clearly defined
and enforceable agreement with allies of the United States
which establishes a multilateral export control system for the
proliferation of products and technologies to rogue regimes that
would jeopardize the national security of the United States;
and
(2) the President should persuade allies of the United
States to promote mutual security interests by preventing rogue
regimes from obtaining militarily critical products and
technologies.
SEC. 203. AMENDMENTS RELATING TO SILVER MEDALS FOR PERSIAN
GULF VETERANS.
Title III of Public law 102–281 (31 U.S.C. 5111 note) is
amended—
(1) in section 303(b), by striking ‘‘entitlement’’ and inserting
‘‘enactment’’; and
(2) in section 307 by striking subsection (b) and inserting
the following:
‘‘(b) NO EXPENDITURES IN ADVANCE OF RECEIPT OF FUNDS.—
The Secretary of the Treasury shall begin minting and issuing
the medals described in section 302 whenever there are any funds
available to cover the cost of minting and issuing any such medals
from amounts received by the Secretary under section 305 and
donations by private persons, and shall continue minting and issu-
ing such medals, subject to the availability of funds to cover the
costs, until all of the medals authorized have been issued.’’.
SEC. 204. COMMEMORATION OF 1995 SPECIAL OLYMPIC WORLD GAMES.
(a) COIN SPECIFICATIONS.—
H. R. 3841—33
(1) ONE DOLLAR SILVER COINS.—
(A) ISSUANCE.—The Secretary of the Treasury (here-
after in this section referred to as the ‘‘Secretary’’) shall
issue not more than 800,000 $1 coins, which shall weigh
26.73 grams, have a diameter of 1.500 inches, and shall
contain 90 percent silver and 10 percent copper.
(B) DESIGN.—The design of the coins issued under
this section shall be emblematic of the 1995 Special Olym-
pics World Games. On each such coin there shall be a
designation of the value of the coin, an inscription of the
year ‘‘1995’’, and inscriptions of the words ‘‘Liberty’’, ‘‘In
God We Trust’’, ‘‘United States of America’’, and ‘‘E
Pluribus Unum’’.
(2) LEGAL TENDER.—The coins issued under this section
shall be legal tender as provided in section 5103 of title 31,
United States Code.
(3) NUMISMATIC ITEMS.—For purposes of section 5132(a)(1)
of title 31, United States Code, all coins minted under this
section shall be considered to be numismatic items.
(b) SOURCES OF BULLION.—The Secretary shall obtain silver
for the coins minted under this section only from stockpiles estab-
lished under the Strategic and Critical Materials Stock Piling Act.
(c) SELECTION OF DESIGN.—The design for the coins authorized
by this section shall be selected by the Secretary after consultation
with the 1995 Special Olympics World Games Organizing Commit-
tee, Inc. and the Commission of Fine Arts. As required by section
5135 of title 31, United States Code, the design shall also be
reviewed by the Citizens Commemorative Coin Advisory Committee.
(d) ISSUANCE OF THE COINS.—
(1) QUALITY OF COINS.—The coins authorized under this
section may be issued in uncirculated and proof qualities.
(2) MINT FACILITY.—Not more than 1 facility of the United
States Mint may be used to strike any particular quality of
the coins minted under this section.
(3) PERIOD FOR ISSUANCE.—The Secretary shall issue coins
minted under this section during the period beginning on Janu-
ary 15, 1995, and ending on December 31, 1995.
(e) SALE OF THE COINS.—
(1) SALE PRICE.—The coins issued under this section shall
be sold by the Secretary at a price equal to the sum of the
face value of the coins, the surcharge provided in paragraph
(4) with respect to such coins, and the cost of designing and
issuing such coins (including labor, materials, dies, use of
machinery, overhead expenses, marketing, and shipping).
(2) BULK SALES.—The Secretary shall make bulk sales at
a reasonable discount.
(3) PREPAID ORDERS.—The Secretary shall accept prepaid
orders for the coins authorized under this section prior to
the issuance of such coins. Sales under this subsection shall
be at a reasonable discount.
(4) SURCHARGE REQUIRED.—All sales shall include a sur-
charge of $10 per coin.
(5) INTERNATIONAL SALES.—The Secretary, in cooperation
with the 1995 Special Olympics World Games Organizing
Committee, shall develop an international marketing program
to promote and sell coins outside of the United States.