‘‘(2) such services only at locations in a State 
in which each such shareholder or member is author-
ized to perform such services.’’. 
(11) Section 4(f) of the Bank Service Company 
Act (12 U.S.C. 1864(f)) is amended by inserting ‘‘or 
savings associations’’ after ‘‘location of banks’’. 
(12) Section 5 of the Bank Service Company 
Act (12 U.S.C. 1865) is amended—
(A) in subsection (a)—
(i) by striking ‘‘insured bank’’ and in-
serting ‘‘insured depository institution’’; 
and 
(ii) by striking ‘‘bank’s’’ and inserting 
‘‘institution’s’’; 
(B) in subsection (b)—
(i) by striking ‘‘insured bank’’ and in-
serting ‘‘insured depository institution’’; 
(ii) by inserting ‘‘authorized only’’ 
after ‘‘performs any service’’; and 
(iii) by inserting ‘‘authorized only’’ 
after ‘‘perform any activity’’; and 
(C) in subsection (c)—
(i) by striking ‘‘the bank or banks’’ 
and inserting ‘‘any depository institution’’; 
and
(ii) by striking ‘‘capability of the 
bank’’ and inserting ‘‘capability of the de-
pository institution’’. 
(13) Section 7 of the Bank Service Company 
Act (12 U.S.C. 1867) is amended—
(A) in subsection (b), by striking ‘‘insured 
bank’’ and inserting ‘‘insured depository insti-
tution’’; and 
(B) in subsection (c)—
(i) by striking ‘‘a bank’’ each place 
such term appears and inserting ‘‘a deposi-
tory institution’’; and 
(ii) by striking ‘‘the bank’’ each place 
such term appears and inserting ‘‘the de-
pository institution’’. 
SEC. 407. CROSS GUARANTEE AUTHORITY. 
Subparagraph (A) of section 5(e)(9) of the Federal 
Deposit Insurance Act (12 U.S.C. 1815(e)(9)(A)) is 
amended to read as follows: 
‘‘(A) such institutions are controlled by the 
same company; or’’. 
SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK 
HOLDING COMPANIES. 
Subsection (k) of section 18 of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(k)) is amended—
(1) in paragraph (2)(A), by striking ‘‘or deposi-
tory institution holding company’’ and inserting ‘‘or 
covered company’’; 
(2) by striking subparagraph (B) of paragraph 
(2) and inserting the following new subparagraph: 
‘‘(B) Whether there is a reasonable basis 
to believe that the institution-affiliated party is 
substantially responsible for—
‘‘(i) the insolvency of the depository 
institution or covered company; 
‘‘(ii) the appointment of a conservator 
or receiver for the depository institution; or 
‘‘(iii) the depository institution’s trou-
bled condition (as defined in the regula-
tions 
prescribed 
pursuant 
to 
section 
32(f)).’’; 
(3) in paragraph (2)(F), by striking ‘‘depository 
institution holding company’’ and inserting ‘‘covered 
company,’’; 
(4) in paragraph (3) in the matter preceding 
subparagraph (A), by striking ‘‘depository institu-
tion holding company’’ and inserting ‘‘covered com-
pany’’; 
(5) in paragraph (3)(A), by striking ‘‘holding 
company’’ and inserting ‘‘covered company’’;
(6) in paragraph (4)(A)—
(A) by striking ‘‘depository institution 
holding company’’ each place such term appears 
and inserting ‘‘covered company’’; and 
(B) by striking ‘‘holding company’’ each 
place such term appears (other than in connec-
tion with the term referred to in subparagraph 
(A)) and inserting ‘‘covered company’’; 
(7) in paragraph (5)(A), by striking ‘‘depository 
institution holding company’’ and inserting ‘‘covered 
company’’; 
(8) in paragraph (5), by adding at the end the 
following new subparagraph: 
‘‘(D) COVERED COMPANY.—The term ‘cov-
ered company’ means any depository institution 
holding company (including any company re-
quired to file a report under section 4(f)(6) of 
the Bank Holding Company Act of 1956), or 
any other company that controls an insured de-
pository institution.’’; and 
(9) in paragraph (6)—
(A) by striking ‘‘depository institution 
holding company’’ and inserting ‘‘covered com-
pany,’’; and