‘‘(vii) Surcharges.
‘‘(D) OTHER ELECTRONIC TRANSACTIONS.—
Data on other electronic transactions shall in-
clude, at a minimum, the following:
‘‘(i) Wire transfer fees.
‘‘(ii) Fees related to payments made
over the Internet or through other electronic
means.
‘‘(E) CREDIT CARD CHARGES AND FEES.—
Data related to credit cards shall include, at a
minimum, the following:
‘‘(i) Application fees.
‘‘(ii) Annual and monthly fees.
‘‘(iii) Rates of interest charged for pur-
chases and cash advances, when an account
is not in default.
‘‘(iv) Rates of interest charged for pur-
chases and cash advances, when an account
is in default.
‘‘(v) Average annual finance charges
paid by customers.
‘‘(vi) Late payment fees.
‘‘(vii) Cash advance and convenience
check fees.
‘‘(viii) Balance transfer fees.
‘‘(ix) Over-the-credit-limit fees.
‘‘(x) Foreign currency conversion fees.
‘‘(F) OTHER FEES AND CHARGES.—Data on
any other fees and charges that the Board deter-
mines to be appropriate to meet the purposes of
this section.
‘‘(3) 
ANNUAL
REPORT
TO
CONGRESS
RE-
QUIRED.—
‘‘(A) PREPARATION.—The Board shall pre-
pare a report of the results of each survey con-
ducted pursuant to paragraph (1) and (2).
‘‘(B) CONTENTS OF THE REPORT.—In addi-
tion to the data required to be collected pursuant
to paragraphs (1) and (2), each report prepared
pursuant to subparagraph (A) shall include a
description of any discernible trend, in the Na-
tion as a whole, in each of the 50 States, and in
each metropolitan statistical area (as defined by
the Director of the Office of Management and
Budget), in the cost and availability of the retail
banking services, including those described in
paragraphs (1) and (2) (including related fees
and minimum balances), that delineates dif-
ferences between institutions on the basis of the
type of institution, the size of the institution and
any engagement of the institution in multistate
activity.
‘‘(C) 
SUBMISSION
TO
CONGRESS.—The
Board shall submit an annual report to the Con-
gress under this paragraph not later than June
1, 2002, and not later than June 1 of each subse-
quent year.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘insured depository institution’ and
‘insured credit union’ mean any depository institu-
tion (as defined in subsection (b)(1)(A)) the deposits
or shares in which are insured under the Federal De-
posit Insurance Act or the Federal Credit Union
Act.’’.
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
Section 19 of the Federal Reserve Act (12 U.S.C. 461) is
amended—
(1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by
striking subparagraph (C) and redesignating sub-
paragraphs (D) and (E) as subparagraphs (C) and
(D), respectively; and
(2) 
in 
subsection 
(c)(1)(A) 
(12 
U.S.C.
461(c)(1)(A)), by striking ‘‘subsection (b)(4)(C)’’ and
inserting ‘‘subsection (b)’’.
SEC. 5. INCREASED FEDERAL RESERVE BOARD FLEXIBILITY
IN SETTING RESERVE REQUIREMENTS.
Section 19(b)(2)(A) of the Federal Reserve Act (12
U.S.C. 461(b)(2)(A)) is amended—
(1) in clause (i), by striking ‘‘the ratio of 3 per
centum’’ and inserting ‘‘a ratio not greater than 3
percent (and which may be zero)’’; and
(2) in clause (ii), by striking ‘‘and not less than
8 per centum,’’ and inserting ‘‘(and which may be
zero),’’.
SEC. 6. TRANSFER OF FEDERAL RESERVE SURPLUSES.
(a) IN GENERAL.—Section 7(b) of the Federal Reserve
Act (12 U.S.C. 289(b)) is amended by adding at the end
the following new paragraph:
‘‘(4) ADDITIONAL TRANSFERS TO COVER INTER-
EST
PAYMENTS
FOR
FISCAL
YEARS
2002
THROUGH
2006.—
‘‘(A) IN
GENERAL.—In addition to the
amounts required to be transferred from the sur-
plus funds of the Federal reserve banks pursuant
to subsection (a)(3), the Federal reserve banks
shall transfer from such surplus funds to the
Board of Governors of the Federal Reserve Sys-
tem for transfer to the Secretary of the Treasury
for deposit in the general fund of the Treasury,
such sums as are necessary to equal the net cost
of section 19(b)(12), as estimated by the Office of
Management and Budget, in each of the fiscal
years 2002 through 2006.
‘‘(B) ALLOCATION
BY
FEDERAL
RESERVE
BOARD.—Of the total amount required to be paid
by the Federal reserve banks under subparagraph
(A) for fiscal years 2002 through 2006, the
Board of Governors of the Federal Reserve Sys-
tem shall determine the amount each such bank
shall pay in such fiscal year.
‘‘(C) REPLENISHMENT OF SURPLUS FUND
PROHIBITED.—During fiscal years 2002 through
2006, no Federal reserve bank may replenish
such bank’s surplus fund by the amount of any
transfer by such bank under subparagraph (A).’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 7(a) of the Federal Reserve Act (12 U.S.C. 289(a)) is
amended by adding at the end the following new paragraph:
‘‘(3) PAYMENT
TO
TREASURY.—During fiscal
years 2002 through 2006, any amount in the surplus
fund of any Federal reserve bank in excess of the
amount equal to 3 percent of the paid-in capital and
surplus of the member banks of such bank shall be
transferred to the Secretary of the Treasury for de-
posit in the general fund of the Treasury.’’.
SEC. 7. RULE OF CONSTRUCTION.
No provision of this Act, or any amendment made by
this Act, shall be construed as creating any presumption
or implication that, in the case of an escrow account main-
tained at a depository institution in connection with a real
estate transaction—
(1) the absorption, by the depository institution,
of expenses incidental to providing a normal banking
function with respect to such escrow account;
(2) the forbearance, by the depository institution,
from charging a fee for providing any such banking
function; and
(3) any benefit which may accrue to the holder
or the beneficiary of such escrow account as a result
of an action of the depository institution described in
paragraph (1) or (2),
may be treated as the payment or receipt of interest for
purposes of any provision of Public Law 93–100, the Fed-
eral Reserve Act, the Home Owners’ Loan Act, or the Fed-
eral Deposit Insurance Act relating to the payment of inter-
est on accounts or deposits at depository institutions.
Amend the title so as to read ‘‘A bill to repeal the
prohibition on the payment of interest on demand depos-
its, to increase the number of interaccount transfers
which may be made from business accounts at depository
institutions, to authorize the Board of Governors of the
Federal Reserve System to pay interest on reserves, and
for other purposes.’’.
Union Calendar No. 27
107TH CONGRESS
1ST SESSION
H. R. 974
[Report No. 107–38]
A BILL
To increase the number of interaccount transfers
which may be made from business accounts at
depository institutions, to authorize the Board of
Governors of the Federal Reserve System to pay
interest on reserves, and for other purposes.
APRIL 3, 2001
Reported with amendments, committed to the Committee
of the Whole House on the State of the Union, and or-
dered to be printed