SEC. 216. SAVINGS ASSOCIATION CREDIT CARD BANKS. 
Section 10(a)(1)(A) of the Home Owners’ Loan Act 
(12 U.S.C. 1467a(a)(1)(A)) is amended by inserting ‘‘and 
such term does not include an institution described in sec-
tion 2(c)(2)(F) of the Bank Holding Company Act of 1956 
for purposes of subsections (a)(1)(E), (c)(3)(B)(i), 
(c)(9)(C)(i), and (e)(3)’’ before the period at the end. 
SEC. 217. INTERSTATE ACQUISITIONS BY S&L HOLDING 
COMPANIES. 
Section 10(e)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(e)(3)) is amended—
(1) by redesignating subparagraphs (A), (B), 
and (C) as subparagraphs (B), (C), and (D), respec-
tively; and 
(2) by inserting before subparagraph (B) (as so 
redesignated) the following new subparagraph: 
‘‘(A) such acquisition would be permissible 
under section 3(d) of the Bank Holding Com-
pany Act of 1956 if the savings and loan hold-
ing company were a bank holding company and 
any savings association to be acquired were a 
bank;’’. 
SEC. 218. BUSINESS ORGANIZATION FLEXIBILITY FOR FED-
ERAL SAVINGS ASSOCIATIONS. 
(a) IN GENERAL.—Section 5 of the Home Owners’ 
Loan Act (12 U.S.C. 1464) is amended by inserting after
subsection (x) (as added by section 213) following new 
subsection: 
‘‘(y) ALTERNATIVE BUSINESS ORGANIZATION.—
‘‘(1) IN GENERAL.—The Director may prescribe 
regulations that—
‘‘(A) permit a Federal savings association 
to be organized other than as a corporation; 
and 
‘‘(B) provide requirements for the organi-
zational characteristics of a Federal savings as-
sociation organized and operating other than as 
a corporation, consistent with the safety and 
soundness of the Federal savings association. 
‘‘(2) EQUAL TREATMENT.—Except as otherwise 
provided in regulations prescribed under subsection 
(1), a Federal savings association that is operating 
other than as a corporation shall have the same 
rights and privileges and shall be subject to the 
same duties, restrictions, penalties, liabilities, condi-
tions, and limitations as a Federal savings associa-
tion that is organized as a corporation.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 5(a)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(a)(1)) is amended by striking 
‘‘organization, incorporation,’’ and inserting ‘‘organi-
zation (as a corporation or other form of business 
organization provided under regulations prescribed 
by the Director under subsection (x)),’’. 
(2) The last sentence of section 5(i)(1) of the 
Home Owners’ Loan Act (12 U.S.C. 1464(i)(1)) is 
amended by striking ‘‘incorporated’’ and inserting 
‘‘organized’’. 
(3) Section 5(o)(1) of the Home Owners’ Loan 
Act (12 U.S.C. 1464(a)(1)) is amended by striking 
‘‘organization, incorporation,’’ and inserting ‘‘organi-
zation (as a corporation or other form of business 
organization provided under regulations prescribed 
by the Director under subsection (x)),’’. 
TITLE III—CREDIT UNION 
PROVISIONS 
SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR-
IZED TO BECOME MEMBERS OF A FEDERAL 
HOME LOAN BANK. 
(a) IN GENERAL.—Section 4(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 
at the end the following new paragraph: 
‘‘(5) CERTAIN
PRIVATELY
INSURED
CREDIT 
UNIONS.—
‘‘(A) IN GENERAL.—A credit union which 
has been determined, in accordance with section
43(e)(1) of the Federal Deposit Insurance Act 
and subject to the requirements of subpara-
graph (B), to meet all eligibility requirements 
for Federal deposit insurance shall be treated 
as an insured depository institution for pur-
poses of determining the eligibility of such cred-
it union for membership in a Federal home loan 
bank under paragraphs (1), (2), and (3). 
‘‘(B) CERTIFICATION BY APPROPRIATE SU-
PERVISOR.—
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph and subject to clause (ii), a 
credit union which lacks Federal deposit 
insurance and which has applied for mem-
bership in a Federal home loan bank may 
be treated as meeting all the eligibility re-
quirements for Federal deposit insurance 
only if the appropriate supervisor of the 
State in which the credit union is char-
tered has determined that the credit union 
meets all the eligibility requirements for 
Federal deposit insurance as of the date of 
the application for membership. 
‘‘(ii) 
CERTIFICATION
DEEMED 
VALID.—If, in the case of any credit union
to which clause (i) applies, the appropriate 
supervisor of the State in which such cred-
it union is chartered fails to make a deter-
mination pursuant to such clause by the 
end of the 6-month period beginning on 
the date of the application, the credit 
union shall be deemed to have met the re-
quirements of clause (i). 
‘‘(C) SECURITY INTERESTS OF FEDERAL 
HOME LOAN BANK NOT AVOIDABLE.—Notwith-
standing any provision of State law authorizing 
a conservator or liquidating agent of a credit 
union to repudiate contracts, no such provision 
shall apply with respect to—
‘‘(i) any extension of credit from any 
Federal home loan bank to any credit 
union which is a member of any such bank 
pursuant to this paragraph; or 
‘‘(ii) any security interest in the as-
sets of such credit union securing any such 
extension of credit.’’. 
(b) COPIES OF AUDITS OF PRIVATE INSURERS OF 
CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE 
PROVIDED
TO
SUPERVISORY
AGENCIES.—Section