become a more integral part of the financial 
mainstream and contribute more to the eco-
nomic growth of the United States. 
(2) PURPOSE.—The purpose of this Act is to 
create a bridging bank depository institution as a 
special purpose financial institution primarily dedi-
cated to serving the underbanked and the unbanked 
consumers and consumers with credit scores at or 
below 680, enabling those consumers to more easily 
transition to or back to the financial mainstream 
through a program of comprehensive banking serv-
ices, including, but not limited to, access to credit 
products, 
financial 
and 
credit 
training, 
loan 
restructurings and other tailored financial products 
and services designed to meet the needs of such con-
sumers. 
SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) APPROPRIATE
BANKING
AGENCY.—The 
term ‘‘appropriate banking agency’’ means any ap-
propriate Federal banking agency and State bank 
supervisor (as such terms are defined in section 3 of 
the Federal Deposit Insurance Act) and, in the case 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
of any insured credit union, the National Credit 
Union Administration Board. 
(2) BRIDGING
BANK
DEPOSITORY
INSTITU-
TION.— 
(A) IN
GENERAL.—The term ‘‘bridging 
bank depository institution’’ means a de novo 
bank chartered by the Comptroller of the Cur-
rency, a de novo savings association chartered 
by the Director of the Office of Thrift Super-
vision, a de novo insured credit union chartered 
by the National Credit Union Administration or 
a de novo bank chartered by a State bank su-
pervisor created pursuant to this Act that— 
(i) has a primary mission of providing 
a comprehensive array of financial services 
to the underbanked, the unbanked and 
consumers with credit scores at or below 
680 in order to provide a vehicle to transi-
tion consumers into the financial main-
stream; 
(ii) serves as a vehicle for providing 
access to credit products predominately to 
consumers with a credit score at or below 
680; 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
(iii) provides financial and credit 
training, loan restructurings and other tai-
lored financial products and services de-
signed to meet their needs; 
(iv) provides a full range of financial 
products and services (including, but not 
limited to, traditional retail products such 
as savings and debit products, credit prod-
ucts such as mortgage loans, automobile 
loans, credit cards and bill payment serv-
ices as well as specialized services such as 
home repair, weatherization and energy ef-
ficient upgrades) to meet the needs of the 
underbanked, the unbanked and consumers 
with credit scores at or below 680; 
(v) provides programs designed to as-
sure financial literacy and product-based, 
individualized financial education such as 
budgeting, financial planning, the mort-
gage process and financial disclosures, the 
credit scoring process, communications 
with financial institutions and rights of ob-
ligations of borrowers and lenders; 
(vi) provides savings and other depos-
its and deposit products to the under-
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
banked, the unbanked, consumers with a 
credit score of 680 or below and a broader 
range of customers the interest on which is 
free from Federal income tax; and 
(vii) has limits placed on its profits 
equal to a 20 percent return on equity (on 
a generally accepted accounting principles 
basis) per annum, and returns excess prof-
its to decrease the costs of loans and other 
financial products and services for the 
underbanked, the unbanked and consumers 
with credit scores at or below 680. 
(B) EXCEPTIONS.—No entity may be 
treated as a bridging bank depository institu-
tion for purposes of this Act unless the entity 
is— 
(i) is either an insured depository in-
stitution or an insured credit union; and 
(ii) is a member of a Federal Reserve 
bank or is a depository institution (as de-
fined in section 19(b)(1)(A) of the Federal 
Reserve Act). 
(3) INCLUDED TERMS.—The terms ‘‘insured de-
pository institution’’, ‘‘national bank’’, ‘‘savings as-
sociation’’, and ‘‘State bank’’ have the same mean-
VerDate Nov 24 2008 
18:27 Jul 12, 2009
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
ing as in section 3 of the Federal Deposit Insurance 
Act. 
(4) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the same meaning as in sec-
tion 101(7) of the Federal Credit Union Act. 
(5) UNBANKED.—The term ‘‘unbanked’’ means 
individuals or families who do not have an account 
with an insured depository institution or an insured 
credit union or a transaction account with a money 
market mutual fund or brokerage firm. 
(6) UNDERBANKED.—The term ‘‘underbanked’’ 
means individuals or families who have a deposit ac-
count with an insured depository institution or an 
insured credit union and have limited or no ability 
to access nondepository services from insured deposi-
tory institutions or insured credit unions. 
SEC. 4. CHARTERING OF BRIDGING BANK DEPOSITORY IN-
STITUTIONS. 
(a) DE NOVO BRIDGING BANK.—Only de novo bridg-
ing bank depository institutions may be created pursuant 
to this Act. A de novo bridging bank depository institution 
may become a bridging bank depository institution by ob-
taining a charter as such from its appropriate banking 
agency. 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
(b) LICENSING REQUIREMENTS.—Any person desir-
ing to establish a bridging bank depository institution 
shall submit an application and obtain prior appropriate 
banking agency approval. 
(c) SCOPE.—This section describes the procedures 
and requirements governing appropriate banking agency 
review and approval of an application to establish a bridg-
ing bank depository institution. 
(d) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) CONTROL.—The term ‘‘control’’ has the 
same meaning as in section 2 of the Bank Holding 
Company Act. 
(2) FINAL
APPROVAL.—The term ‘‘final ap-
proval’’, in connection with a bridging bank deposi-
tory institution, means the appropriate banking 
agency action issuing a charter certificate and au-
thorizing a bridging bank depository institution to 
open for business. 
(3) HOLDING
COMPANY.—The term ‘‘holding 
company’’ means any company that controls or pro-
poses to control a bridging bank depository institu-
tion whether or not the company is a bank holding 
company under the Bank Holding Company Act of 
1956. 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
(1) IN
GENERAL.—The name of a proposed 
bridging bank depository institution shall include the 
word ‘‘bridge’’ or ‘‘bridging’’. In determining wheth-
er to approve an application to establish a bridging 
bank depository institution, the appropriate banking 
agency shall verify that the proposed bridging bank 
depository institution has complied with the require-
ments contained in this chapter, including the fol-
lowing requirements. A bridging bank depository in-
stitution shall— 
(A) draft and file articles of association, 
articles of incorporation, or other appropriate 
organizational documents with the appropriate 
banking agency; 
(B) draft and file an organization certifi-
cate containing specified information with the 
appropriate banking agency; 
(C) ensure that all capital stock is paid in 
prior to commencing business; 
(D) have at least five elected directors; and 
(E) submit to the appropriate banking 
agency for approval a business plan which, 
among other things, provides in reasonable de-
tail evidence of the knowledge, understanding 
and experience of the board of directors of the 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
bridging bank depository institution and the 
senior management of the bridging bank deposi-
tory institution of the unique underwriting re-
quirements not typically adequately addressed 
by analytics and processes used for under-
writing extensions of credit for consumers with 
credit scores at or above 680 for initially ex-
tending 
credit 
to 
the 
underbanked, 
the 
unbanked and consumers with credit scores at 
or below 680, and ongoing account management 
practices that take into account the attributes 
of risks specific to a consumers group which 
has derogatory events in its credit history and 
is likely to have subsequent derogatory events 
in its efforts to graduate to a credit band with 
a higher credit score and better credit profile. 
(2) COMMUNITY REINVESTMENT ACT OF 1977.— 
The appropriate banking agency shall take into ac-
count a proposed bridging bank depository institu-
tion’s description of how it will meet its Community 
Reinvestment Act of 1977 objectives in the same 
way that a national bank is required to meet its 
Community Reinvestment Act objectives. 
(3) GRADUATION PROGRAM.—The appropriate 
banking agency shall take into account a proposed 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
bridging bank depository institution’s program to 
develop and implement a phased approach to moving 
consumers with credit scores at or below 680 from 
their current credit score into higher bands of credit 
scores and the implementation of specialized policies 
and procedures, practices and technology to encour-
age and support the success of the customer Grad-
uation Program. The Graduation Program shall in-
clude an education component which provides in rea-
sonable detail what a consumer shall do to move 
from 1 credit scoring band to a higher credit scoring 
band, including providing opportunities for the con-
sumer to develop a favorable credit history with the 
bridging bank depository institution. 
(f) POLICY.— 
(1) IN GENERAL.—The marketplace is normally 
the best regulator of economic activity, and competi-
tion within the marketplace promotes efficiency and 
better customer service. Accordingly, the appropriate 
banking agency’s policy shall be to approve pro-
posals to establish bridging bank depository institu-
tions that have a reasonable chance of success and 
that will be operated in a safe and sound manner. 
It shall not be the policy of the appropriate banking 
agency to ensure that a proposal to establish a 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
bridging bank depository institution is without risk 
to the organizers or to protect existing institutions 
from healthy competition from a new bridging bank 
depository institution. 
(2) POLICY
CONSIDERATIONS.—In evaluating 
an application to establish a bridging bank deposi-
tory institution, the appropriate banking agency 
shall consider whether the proposed bridging bank 
depository institution— 
(A) has organizers who are familiar with 
applicable Federal and State banking laws and 
regulations, and the credit and training needs 
of the underbanked, the unbanked and con-
sumers with credit scores at or below 680; 
(B) has competent management, including 
a board of directors, with ability and experience 
relevant to the types of services to be provided, 
especially the ability and experience to design 
and provide financial services to the under-
banked, the unbanked and consumers with 
credit scores at or below 680; 
(C) has minimum capital of at least 
$10,000,000 and that is sufficient to support 
the projected volume and type of banking busi-
ness that focuses on the needs of the under-
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS
banked, the unbanked and consumers with 
credit scores at or below 680; 
(D) can reasonably be expected to achieve 
and maintain profitability within a reasonable 
time; 
(E) will be operated in a safe and sound 
manner; and 
(F) will be well capitalized for the first 
three years after opening for business. 
(g) ADDITIONAL FACTORS.—The appropriate bank-
ing agency may also consider additional factors listed in 
section 6 of the Federal Deposit Insurance Act, including 
the risk to the Deposit Insurance Fund, and whether the 
proposed bridging bank depository institution’s corporate 
powers are consistent with the purposes of the Federal De-
posit Insurance Act and this Act. 
(h) APPROPRIATE
BANKING
AGENCY
EVALUA-
TION.—The appropriate banking agency shall evaluate as 
a whole a proposed bridging bank depository institution’s 
organizing group and its business plan or operating plan. 
An organizing group and its business plan or operating 
plan shall be stronger in markets where economic condi-
tions are marginal or competition is intense. 
(i) ORGANIZING GROUP.— 
VerDate Nov 24 2008 
15:39 Jul 12, 2009
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3171.IH
H3171
mstockstill on DSKH9S0YB1PROD with BILLS