IIA
103D CONGRESS
1ST SESSION
H. R. 3474
IN THE SENATE OF THE UNITED STATES
NOVEMBER 22, 1993
Received
NOVEMBER 24 (legislative day, NOVEMBER 23), 1993
Read twice and referred to the Committee on Banking, Housing, and Urban
Affairs
AN ACT
To reduce administrative requirements for insured depository
institutions to the extent consistent with safe and sound
banking practices, to facilitate the establishment of com-
munity development financial institutions, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—REGULATORY REFORM
SEC. 100. SHORT TITLE; TABLE OF SECTIONS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Regulatory Reform Act of 1993’’.
(b) TABLE OF CONTENTS.—
TITLE I—REGULATORY REFORM
Sec. 100. Short title; table of sections.
Subtitle A—Amendments Relating to the Federal Deposit Insurance
Corporation Improvement Act of 1991
Sec. 101. Audit costs.
Sec. 102. 18-month examination rule for certain small institutions.
Sec. 103. Standards for safety and soundness.
Sec. 104. Clarifying amendment relating to data collection.
Subtitle B—General Regulatory Reform
Sec. 111. State regulation of real estate appraisals.
Sec. 112. Collateralization of public deposits.
Sec. 113. Bank Deposit Financial Assistance Program.
Sec. 114. Coordinated and unified examinations.
Sec. 115. Coordination of Federal and State reporting requirements to reduce
duplicative efforts.
Sec. 116. Limiting potential liability on foreign accounts.
Sec. 117. Expedited procedures for forming a bank holding company.
Sec. 118. Flexibility in choosing boards of directors.
Sec. 119. Repeal of obsolete requirements for national banks.
Sec. 120. Limited exemption authority.
Subtitle C—Other Regulatory Reform
Sec. 121. Elimination of duplicative disclosures for home equity loans.
Sec. 122. Alternative dispute resolutions.
Sec. 123. Clarification of RESPA disclosure requirements.
Sec. 124. Exemption of business loans from RESPA requirements.
Sec. 125. Expedited procedures for bank holding companies to seek approval to
engage in certain activities.
Sec. 126. Waiver of right of rescission for certain refinancing transactions.
Sec. 127. Simplified disclosure for existing depositors.
Sec. 128. Deposit broker registration.
Sec. 129. Agency ombudsman.
Sec. 130. Alternative rules for disclosures for radio advertising of credit trans-
actions, deposit accounts, and consumer leases.
Subtitle D—Reports, Studies, Streamlined Regulatory Requirements
Sec. 131. Study on capital standards and their impact on the economy.
Sec. 132. Study of the consumer credit system.
Sec. 133. Studies on the impact of the payment of interest on reserves.
Sec. 134. Streamlining of regulatory requirements.
Sec. 135. Call report simplification.
Sec. 136. Administrative consideration of burden with new regulations.
Sec. 137. Elimination of duplicative filings.
Sec. 138. Recourse agreements.
Sec. 139. Antitrust reports in connection with merger transactions.
Sec. 140. Bankers’ banks.
Sec. 141. Due process protections relating to attachment of assets.
Sec. 142. Time limit on agency consideration of completed applications.
Sec. 143. Timely completion of CRA review.
Sec. 144. Revisions of standards.
Sec. 145. Feasibility study of data bank.
Subtitle A—Amendments Relating
to the Federal Deposit Insur-
ance Corporation Improvement
Act of 1991
SEC. 101. AUDIT COSTS.
(a) HOLDING COMPANY AUDIT REQUIREMENTS.—
Section 36(i) of the Federal Deposit Insurance Act (12
U.S.C. 1831m(i)) is amended by striking paragraph (2)
and inserting the following:
‘‘(2) the institution is described in 1 of the fol-
lowing subparagraphs:
‘‘(A) The institution has total assets, as of
the beginning of such fiscal year, of less than
$5,000,000,000.
‘‘(B) The institution has—
‘‘(i) total assets, as of the beginning
of such fiscal year, of $5,000,000,000 or
more and less than $9,000,000,000; and
‘‘(ii) a CAMEL composite rating of 1
or 2 under the Uniform Financial Institu-
tions Rating System (or an equivalent rat-
ing under a comparable rating system) as
of the most recent examination of such in-
stitution by the Corporation or the appro-
priate Federal banking agency.
‘‘(C) The institution—
‘‘(i) has—
‘‘(I) total assets, as of the begin-
ning 
of 
such 
fiscal 
year, 
of
$9,000,000,000 or more; and
‘‘(II) a CAMEL composite rating
of 1 or 2 under the Uniform Financial
Institutions Rating System (or an
equivalent rating under a comparable
rating system) as of the most recent
examination of such institution by the
Corporation or the appropriate Fed-
eral banking agency; and
‘‘(ii) in the case of an institution
which has a CAMEL composite rating of
2, is in compliance with the requirements
of subsection (b) (without regard to any
exemption such institution may otherwise
have under this subsection from the re-
quirements of subsection (b)).
Notwithstanding paragraph (2), the audit committee of
the holding company of an insured depository institution
that the Corporation determines to be a large institution
shall not include any large customers of the institution.’’.
(b) WRITTEN NOTICE OF REQUIREMENT FOR AUDIT
OF QUARTERLY REPORTS.—Section 36(g)(2) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831m(g)(2)) is
amended by adding at the end the following new subpara-
graph:
‘‘(D) NOTICE TO INSTITUTION.—The Cor-
poration shall promptly notify an insured depos-
itory institution, in writing, of a determination
pursuant to subparagraph (A) to require a re-
view of such institution’s quarterly financial re-
ports.’’.
SEC. 102. 18-MONTH EXAMINATION RULE FOR CERTAIN
SMALL INSTITUTIONS.
(a) IN GENERAL.—Section 10(d)(4) of the Federal
Deposit Insurance Act (12 U.S.C. 1820(d)(4)) is amend-
ed—
(1) 
in 
subparagraph 
(A), 
by 
striking
‘‘$100,000,000’’ and inserting ‘‘$250,000,000’’;
(2) in subparagraph (C), by striking ‘‘and’’ at
the end;
(3) by redesignating subparagraph (D) as sub-
paragraph (E); and
(4) by inserting after subparagraph (C) the fol-
lowing new subparagraph:
‘‘(D) the insured institution is not cur-
rently subject to a formal enforcement proceed-
ing or order by the Corporation or the appro-
priate Federal banking agency; and’’.
(b) GUIDELINES REQUIRED.—
(1) IN GENERAL.—Section 10(d) of the Federal
Deposit Insurance Act (12 U.S.C. 1820(d)) is
amended by adding at the end the following new
paragraph:
‘‘(6) STANDARDS FOR DETERMINING ADEQUACY
OF STATE EXAMINATIONS.—The Financial Institu-
tions Examination Council shall prescribe guidelines
establishing standards for determining whether a
State examination carries out the purposes of this
subsection for purposes of paragraph (3).’’.
(2) EFFECTIVE
DATE
OF
INITIAL
GUIDE-
LINES.—The initial guidelines required to be issued
pursuant to the amendment made by subsection (a)
shall be issued and shall take effect before the end
of the 1-year period beginning on the date of the en-
actment of this Act.
SEC. 103. STANDARDS FOR SAFETY AND SOUNDNESS.
(a) ELIMINATION
OF STOCK VALUATION PROVI-
SION.—Section 39(b)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1831p–1(b)(1)) is amended—
(1) in subparagraph (A), by adding ‘‘and’’ at
the end; and
(2) by striking subparagraph (C).
(b) HOLDING COMPANIES EXCLUDED FROM SCOPE
OF STANDARDS.—Section 39 of the Federal Deposit In-
surance Act (12 U.S.C. 1831p–1) is amended—
(1) in subsections (a) and (b), by striking ‘‘and
depository institution holding companies’’;
(2) in paragraphs (1)(A) and (2) of subsection
(e), by striking ‘‘or depository institution holding
company’’; and
(3) in subsection (e), by striking ‘‘or company’’
each place such term appears.
(c) ESTABLISHING STANDARDS IN GUIDELINES.—
(1) IN GENERAL.—Section 39(d)(1) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831p–
1(d)(1)) is amended—
(A) in the 1st sentence, by inserting ‘‘or
guideline’’ before the period; and
(B) in the 2d sentence, by inserting ‘‘or
guidelines’’ after ‘‘Such regulations’’.
(2) CLERICAL AMENDMENT.—The heading for
section 39(d) of the Federal Deposit Insurance Act
(12 U.S.C. 1831p–1(d)) is amended by striking ‘‘BY
REGULATION’’.
(d) EFFECTIVE DATE.—The amendments made by
subsection (a) to section 39 of the Federal Deposit Insur-
ance Act shall take effect as if such amendments had been
included in such section as of the effective date of the sec-
tion.
SEC. 104. CLARIFYING AMENDMENT RELATING TO DATA
COLLECTION.
Section 7(a)(9) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(a)(9)) is amended by adding at the end
the following new sentence: ‘‘In prescribing reporting and
other requirements for the collection of actual and accu-
rate information pursuant to this paragraph, the Corpora-
tion shall minimize the regulatory burden imposed upon
insured depository institutions while taking into account
the benefit of the information to the Corporation, includ-
ing the use of the information to enable the Corporation
to more accurately determine the total amount of insured
deposits in each insured depository institution.’’.
Subtitle B—General Regulatory
Reform
SEC. 111. STATE REGULATION OF REAL ESTATE APPRAIS-
ALS.
Section 1122 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351)
is amended—
(1) by redesignating subsections (b) through (e)
as subsections (c) through (f), respectively;
(2) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) RECIPROCITY.—The Appraisal Subcommittee
shall encourage the States to develop reciprocity agree-
ments that readily authorize an appraiser who—
‘‘(1) is licensed or certified in 1 State; and
‘‘(2) is in good standing with the State ap-
praiser certifying or licensing agency in such State,
to perform appraisals in other States.’’; and
(3) in subsection (a)—
(A) 
by 
redesignating 
paragraphs 
(1)
through (3) as subparagraphs (A) through (C),
respectively, and moving the left margin of such
subparagraphs (as so redesignated) 2 ems to
the right;
(B) by striking ‘‘PRACTICE.—A State’’ and
inserting ‘‘PRACTICE.—
‘‘(1) IN GENERAL.—A State’’; and
(C) by adding at the end the following new
paragraph:
‘‘(2) FEES
FOR
TEMPORARY
PRACTICE.—A
State appraiser certifying or licensing agency shall
not impose excessive fees or burdensome require-
ments, as determined by the Appraisal Subcommit-
tee, for temporary practice under this subsection.’’.
SEC. 112. COLLATERALIZATION OF PUBLIC DEPOSITS.
Section 13(e) of the Federal Deposit Insurance Act
(12 U.S.C. 1823(e)) is amended—
(1) by redesignating paragraphs (1) through
(4) as subparagraphs (A) through (D), respectively,
and moving the left margin of such subparagraphs
(as so redesignated) 2 ems to the right;
(2) by striking ‘‘CORPORATION.—No agree-
ment’’ and inserting ‘‘CORPORATION.—
‘‘(1) IN GENERAL.—No agreement’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) PUBLIC DEPOSITS.—An agreement to pro-
vide for the lawful collateralization of—
‘‘(A) deposits of a Federal, State, or local
governmental entity or any depositor referred to
in section 11(a)(2), including an agreement to
provide collateral in lieu of a surety bond;
‘‘(B) bankruptcy estate funds pursuant to
section 345 of title 11, United States Code; or
‘‘(C) extensions of credit from any Federal
reserve bank or Federal home loan bank,
shall not be deemed to be invalid pursuant to para-
graph (1)(B) solely because such agreement was not
executed contemporaneously with changes in the col-
lateral made in accordance with such agreement.’’.
SEC. 113. BANK DEPOSIT FINANCIAL ASSISTANCE PRO-
GRAM.
(a) IN GENERAL.—Effective December 19, 1993, sec-
tion 7(i) of the Federal Deposit Insurance Act (12 U.S.C.
1817(i)) is amended—
(1) by redesignating paragraph (3) as para-
graph (4); and
(2) by inserting after paragraph (2), the follow-
ing new paragraph:
‘‘(3) BANK
DEPOSIT
FINANCIAL
ASSISTANCE
PROGRAM.—Notwithstanding paragraph (1), funds
deposited by an insured depository institution pursu-
ant to the Bank Deposit Financial Assistance Pro-
gram of the Department of Energy shall be sepa-
rately insured in an amount not to exceed $100,000
for each insured depository institution depositing
such funds.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 11(a)(1)(C) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(a)(1)(C)) is amended by striking ‘‘sec-
other Federal banking agency or appropriate
State bank supervisor.
‘‘(8) SAFETY
AND
SOUNDNESS
EXAMS.—Not-
withstanding any provision of paragraph (7) or any
system established pursuant to such paragraph, any
appropriate Federal banking agency may conduct a
separate examination of an insured depository insti-
tution at any time for safety and soundness pur-
poses.’’.
SEC. 115. COORDINATION OF FEDERAL AND STATE RE-
PORTING REQUIREMENTS TO REDUCE DU-
PLICATIVE EFFORTS.
(a) STATE
ACCESS
TO
FEDERAL
AGENCY
RE-
PORTS.—The 1st sentence of section 7(a)(2)(A) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(a)(2)(A))
is amended by inserting ‘‘and, with respect to any State
depository institution, any appropriate State bank super-
visor for such institution’’ after ‘‘The Corporation’’.
(b) STATE COORDINATION WITH FEDERAL REPORT-
ING REQUIREMENTS.—The Federal banking agencies and
State bank supervisors shall, to the greatest extent prac-
ticable—
(1) coordinate the number, types, and frequency
of reports required to be submitted to such agencies
and supervisors by insured depository institutions
and the type and amount of information required to
be included in such reports; and
(2) use copies of reports of condition and other
reports submitted by such institutions to any such
agency or supervisor.
SEC. 116. LIMITING POTENTIAL LIABILITY ON FOREIGN AC-
COUNTS.
(a) AMENDMENT TO THE FEDERAL RESERVE ACT.—
The Federal Reserve Act (12 U.S.C. 221 et seq.) is
amended by inserting after section 25B the following new
section:
‘‘SEC. 25C. POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.
‘‘(a) IN GENERAL.—A member bank shall not be re-
quired to repay any deposit made at a foreign branch of
the bank if the branch cannot repay the deposit due to—
‘‘(1) an act of war, insurrection or civil strife;
or
‘‘(2) an action by a foreign government or in-
strumentality (whether de jure or de facto) in the
country in which the branch is located,
unless the member bank has expressly agreed in writing
to repay the deposit under those circumstances.
‘‘(b) REGULATIONS.—The Board may prescribe such
regulations as the Board may determine to be necessary
to carry out this section.’’.
(b) CONFORMING AMENDMENTS TO THE FEDERAL
DEPOSIT INSURANCE ACT.—
(1) IN GENERAL.—Section 18 of the Federal
Deposit Insurance Act (12 U.S.C. 1828) is amended
by adding at the end the following new subsection:
‘‘(q) SOVEREIGN RISK.—Section 25C of the Federal
Reserve Act shall apply to every nonmember insured bank
in the same manner and to the same extent as if the
nonmember insured bank were a member bank.’’.
(2) CONFORMING AMENDMENT.—Subparagraph
(A) of section 3(l)(5) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(l)(5)) is amended to read
as follows:
‘‘(A) any obligation of a depository institu-
tion which is carried on the books and records
of an office of such bank or savings association
located outside of any State, unless—
‘‘(i) such obligation would be a deposit
if it were carried on the books and records
of the depository institution, and would
have been payable at, an office located in
any State; and
‘‘(ii) the contract evidencing the obli-
gation provides by express terms, and not
by implication, for payment at an office of
the depository institution located in any
State; and’’.
(c) EXISTING CLAIMS NOT AFFECTED.—Section 25C
of the Federal Reserve Act (as added by subsection (a))
shall not be applied retroactively and shall not be con-
strued to affect or apply to any claim or cause of action
(to which such section would otherwise apply) which arises
from events or circumstances that occurred before the date
of enactment of this Act.
SEC. 117. EXPEDITED PROCEDURES FOR FORMING A BANK
HOLDING COMPANY.
The 2d sentence of section 3(a) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(a)) is amended—
(1) by striking ‘‘or (B)’’ and inserting ‘‘(B)’’;
and
(2) by inserting before the period the following:
‘‘; or (C) the acquisition, by a company, of control
of a bank in a reorganization in which a person or
group of persons exchange their shares of the bank
for shares of a newly formed bank holding company
and receive after the reorganization substantially the
same proportional share interest in the holding com-
pany as they held in the bank except for changes in
shareholders’ interests resulting from the exercise of
dissenting shareholders’ rights under State or Fed-
eral law if—
‘‘(i) immediately following the acquisi-
tion—
‘‘(I) the bank holding company
meets the capital and other financial
standards prescribed by the Board by
regulation for such a bank holding
company; and
‘‘(II) the bank is adequately cap-
italized (as defined in section 38 of
the Federal Deposit Insurance Act);
‘‘(ii) the holding company does not en-
gage in any activities other than those of
managing and controlling banks as a result
of the reorganization;
‘‘(iii) the company provides 30 days
prior notice to the Board and the Board
does not object to such transaction during
such 30-day period; and
‘‘(iv) the holding company will not ac-
quire control of any additional bank as a
result of the reorganization.’’.
SEC. 118. FLEXIBILITY IN CHOOSING BOARDS OF DIREC-
TORS.
Section 5146 of the Revised Statutes (12 U.S.C. 72)
is amended in the 1st sentence, by striking ‘‘two thirds’’
and inserting ‘‘a majority’’.
SEC. 119. REPEAL OF OBSOLETE REQUIREMENTS FOR NA-
TIONAL BANKS.
(a) REPEAL OF PROVISIONS IN THE REVISED STAT-
UTES.—The following sections of the Revised Statutes are
hereby repealed:
(1) Section 5170 (12 U.S.C. 28).
(2) Section 5203 (12 U.S.C. 87).
(3) Section 5206 (12 U.S.C. 88).
(4) Section 5196 (12 U.S.C. 89).
(5) Section 5158 (12 U.S.C. 102).
(6) Section 5159 (12 U.S.C. 101a).
(7) Section 5172 (12 U.S.C. 104).
(8) Section 5173 (12 U.S.C. 107).
(9) Section 5174 (12 U.S.C. 108).
(10) Section 5182 (12 U.S.C. 109).
(11) Section 5183 (12 U.S.C. 110).
(12) Section 5195 (12 U.S.C. 123).
(13) Section 5184 (12 U.S.C. 124).
(14) Section 5226 (12 U.S.C. 131).
(15) Section 5227 (12 U.S.C. 132).
(16) Section 5228 (12 U.S.C. 133).
(17) Section 5229 (12 U.S.C. 134).
(18) Section 5230 (12 U.S.C. 137).
(19) Section 5231 (12 U.S.C. 138).
(20) Section 5232 (12 U.S.C. 135).
(21) Section 5233 (12 U.S.C. 136).
(22) Section 5185 (12 U.S.C. 151).
(23) Section 5186 (12 U.S.C. 152).
(24) Section 5160 (12 U.S.C. 168).
(25) Section 5161 (12 U.S.C. 169).
(26) Section 5162 (12 U.S.C. 170).
(27) Section 5163 (12 U.S.C. 171).
(28) Section 5164 (12 U.S.C. 172).
(29) Section 5165 (12 U.S.C. 173).
(30) Section 5166 (12 U.S.C. 174).
(31) Section 5167 (12 U.S.C. 175).
(32) Section 5222 (12 U.S.C. 183).
(33) Section 5223 (12 U.S.C. 184).
(34) Section 5224 (12 U.S.C. 185).
(35) Section 5225 (12 U.S.C. 186).
(36) Section 5237 (12 U.S.C. 195).
(b) REPEAL OF OTHER OBSOLETE PROVISIONS IN
BANKING LAWS.—The following provisions of law are
hereby repealed:
(1) Section 26 of the Federal Deposit Insurance
Act (12 U.S.C. 1831c).
(2) Section 12 of the Act entitled ‘‘An Act To
define and fix the standard of value, to maintain the
parity of all forms of money issued or coined by the
United States, to refund the public debt, and for
other purposes.’’ and approved March 14, 1900 (12
U.S.C. 101).
(3) Section 3 of the Act entitled ‘‘An Act To
amend the laws relating to the denominations of cir-
culating notes by national banks and to permit the
issuance of notes of small denominations, and for
other purposes.’’ and approved October 5, 1917 (12
U.S.C. 103).
(4) The following sections of the Act entitled
‘‘An Act fixing the amount of United States notes,
providing for a redistribution of the national-bank
currency, and for other purposes.’’ and approved
June 20, 1874:
(A) Section 5 (12 U.S.C. 105).
(B) Section 3 (12 U.S.C. 121).
(C) Section 8 (12 U.S.C. 126).
(D) Section 4 (12 U.S.C. 176).
(5) The following sections of the Act entitled
‘‘An Act to enable national-banking associations to
extend their corporate existence, and for other pur-
poses.’’ and approved July 12, 1882:
(A) Section 8 (12 U.S.C. 177).
(B) Section 9 (12 U.S.C. 178).
(6) The Act entitled ‘‘An Act to amend the na-
tional bank act in providing for the redemption of
national bank notes stolen from or lost by banks of
issue.’’ and approved July 28, 1892 (12 U.S.C.
125).
(7) The Act entitled ‘‘An Act authorizing the
conversion of national gold banks.’’ and approved
February 14, 1880 (12 U.S.C. 153).
(8) The 1st sentence of the 8th undesignated
paragraph of section 16 of the Federal Reserve Act
(12 U.S.C. 418) is amended by striking ‘‘the Comp-
troller of the Currency shall under the direction of
the Secretary of the Treasury,’’ and inserting ‘‘the
Secretary of the Treasury shall’’.
(9) The 9th undesignated paragraph of section
16 of the Federal Reserve Act (12 U.S.C. 419) is
amended to read as follows:
‘‘When such notes have been prepared, the
notes shall be delivered to the Board of Governors
of the Federal Reserve System subject to the order
of the Secretary of the Treasury for the delivery of
such notes in accordance with this Act.’’.
(10) The 10th undesignated paragraph of sec-
tion 16 of the Federal Reserve Act (12 U.S.C. 420)
is amended—
(A) by striking ‘‘Comptroller of the Cur-
rency’’ and inserting ‘‘Secretary of the Treas-
ury’’; and
(B) by striking ‘‘Federal Reserve Board’’
and inserting ‘‘Board of Governors of the Fed-
eral Reserve System’’.
(11) The 11th undesignated paragraph of sec-
tion 16 of the Federal Reserve Act (12 U.S.C. 421)
is amended to read as follows:
‘‘The Secretary of the Treasury may examine
the plates, dies, bed pieces, and other material used
in the printing of Federal Reserve notes and issue
regulations relating to such examinations.’’.
(c) AMENDMENTS TO OTHER LAWS.—
(1) The Act entitled ‘‘An Act to provide for the
redemption of national-bank notes, Federal Reserve
bank notes, and Federal Reserve notes which cannot
be identified as to the bank of issue.’’ and approved
June 13, 1933, is amended—
(A) in the 1st section (12 U.S.C. 121a)—
(i) by striking ‘‘whenever any na-
tional-bank notes, Federal Reserve bank
notes,’’ and inserting ‘‘whenever any Fed-
eral Reserve bank notes’’; and
(ii) by striking ‘‘, and the notes, other
than Federal Reserve notes, so redeemed
shall be forwarded to the Comptroller of
the Currency for cancellation and destruc-
tion’’; and
(B) in section 2 (12 U.S.C. 122a)—
(i) by striking ‘‘National-bank notes
and’’; and
(ii) by striking ‘‘national-bank notes
and’’.
(2) The 1st section of the Act entitled ‘‘An Act
making appropriations for sundry civil expenses of
the Government for the fiscal year ending June thir-
tieth, eighteen hundred and seventy-six, and for
other purposes.’’ and approved March 3, 1875, is
amended in the 1st paragraph which appears under
the heading ‘‘NATIONAL
CURRENCY’’ by striking
‘‘Secretary of the Treasury: Provided, That’’ and all
that follows through the period and inserting ‘‘Sec-
retary of the Treasury.’’.
(3) The Act entitled ‘‘An Act to simplify the ac-
counts of the Treasurer of the United States, and
for other purposes.’’ and approved October 10, 1940
losses and bad debts’’ and inserting ‘‘undivided
profits, subject to other applicable provisions of
law’’; and
(B) by striking the 3d sentence.
(2) DECLARATION
OF
DIVIDENDS.—Section
5199 of the Revised Statutes (12 U.S.C. 60) is
amended—
(A) in the 1st sentence, by striking ‘‘net
profits of the association’’ and inserting ‘‘undi-
vided profits of the association, subject to the
limitations in subsection (b),’’;
(B) by striking ‘‘net profits’’ each subse-
quent place such term appears and inserting
‘‘net income’’; and
(C) by striking subsection (c).
(e) CLERICAL AMENDMENTS.—
(1) The table of sections for chapter 1 of title
LXII of the Revised Statutes of the United States
is amended—
(A) by inserting after the item relating to
section 5156 the following new item:
‘‘5156A. Mergers, consolidations, and other acquisitions authorized.’’;
and
(B) by striking the items relating to sec-
tions 5141 and 5151.
(2) The table of sections for chapter 2 of title
LXII of the Revised Statutes of the United States
is amended by striking the item relating to each of
the following sections:
(A) Section 5158.
(B) Section 5159.
(C) Section 5160.
(D) Section 5161.
(E) Section 5162.
(F) Section 5163.
(G) Section 5164.
(H) Section 5165.
(I) Section 5166.
(J) Section 5167.
(K) Section 5170.
(L) Section 5171.
(M) Section 5172.
(N) Section 5173.
(O) Section 5174.
(P) Section 5175.
(Q) Section 5176.
(R) Section 5177.
(S) Section 5178.
(T) Section 5179.
(U) Section 5180.
(V) Section 5181.
(W) Section 5182.
(X) Section 5183.
(Y) Section 5184.
(Z) Section 5185.
(AA) Section 5186.
(BB) Section 5187.
(CC) Section 5188.
(DD) Section 5189.
(3) The table of sections for chapter 3 of title
LXII of the Revised Statutes of the United States
is amended by striking the item relating to each of
the following sections:
(A) Section 5193.
(B) Section 5194.
(C) Section 5195.
(D) Section 5196.
(E) Section 5202.
(F) Section 5203.
(G) Section 5206.
(H) Section 5209.
(I) Section 5212.
(3) The table of sections for chapter 4 of title
LXII of the Revised Statutes of the United States
is amended—
(A) by inserting after the item relating to
section 5239 the following new item:
‘‘5239A. Regulatory authority.’’;
and
(B) by striking the items relating to the
following sections:
(i) Section 5222.
(ii) Section 5223.
(iii) Section 5224.
(iv) Section 5225.
(v) Section 5226.
(vi) Section 5227.
(vii) Section 5228.
(viii) Section 5229.
(ix) Section 5230.
(x) Section 5231.
(xi) Section 5232.
(xii) Section 5233.
(xiii) Section 5237.
(xiv) Section 5243.
SEC. 120. LIMITED EXEMPTION AUTHORITY.
Section 22(h)(5)(C) of the Federal Reserve Act (12
U.S.C. 375b(5)(C)) is amended by striking ‘‘subparagraph
(A) for member banks with less than $100,000,000 in de-
posits if the Board’’ and inserting ‘‘subparagraph (A)
for—
‘‘(i) member banks with less than
$100,000,000 in deposits; and
‘‘(ii) member banks which have—
‘‘(I) 
total 
deposits 
of
$100,000,000 or more and less than
$250,000,000; and
‘‘(II) a CAMEL composite rating
of 1 or 2 under the Uniform Financial
Institutions Rating System (or an
equivalent rating under a comparable
rating system) as of the most recent
examination of such institution by the
Federal Deposit Insurance Corpora-
tion or the appropriate Federal bank-
ing agency,
if the Board’’.
Subtitle C—Other Regulatory
Reform
SEC. 121. ELIMINATION OF DUPLICATIVE DISCLOSURES
FOR HOME EQUITY LOANS.
Section 4(a) of the Real Estate Settlement Proce-
dures Act (12 U.S.C. 2603(a)) is amended by adding at
the end the following: ‘‘In the case of a federally related
mortgage loan extended under an open end credit plan (as
defined in section 103(i) of the Truth in Lending Act),
disclosures made under section 127A(a) of the Truth in
Lending Act may be used in lieu of the disclosures re-
quired under this section if—
‘‘(1) the disclosures made pursuant to such sec-
tion 127A(a) contain all of the information that is
required under this section; and
‘‘(2) the information is disclosed in a manner
that is no less conspicuous than is required under
this section.’’.
SEC. 122. ALTERNATIVE DISPUTE RESOLUTIONS.
(a) IN GENERAL.—Each Federal banking agency
shall develop and implement a program for using alter-
native means of dispute resolution of issues in controversy
(hereafter in this section referred to as the ‘‘alternative
dispute resolution program’’) if the parties to the dispute,
including the agency, agree to such proceeding.
(b) STANDARDS.—Alternative dispute resolution pro-
grams shall—
(1) be fair to all interested parties to a dispute;
(2) resolve disputes expeditiously; and
(3) be less costly than traditional means of dis-
pute resolution, including litigation.
(c) IMPLEMENTATION OF PROGRAM.—Each Federal
banking agency shall—
agencies, accepted or declined to use such means;
and
(4) any recommendations of the Conference to
improve the alternative dispute resolution procedures
of the Federal banking agencies.
(e) COORDINATION WITH EXISTING AGENCY ADR
PROGRAMS.—
(1) EVALUATION
REQUIRED.—Any Federal
banking agency which, as of the date of the enact-
ment of this Act, maintains an alternative dispute
resolution program under any other provision of law
shall include such program in the evaluation con-
ducted under subsection (c)(2).
(2) MULTIPLE ADR PROGRAMS.—No provision
of this section shall be construed as precluding any
Federal banking agency from establishing more than
1 alternative means of dispute resolution.
(f) DEFINITIONS.—For purposes of this section—
(1) ALTERNATIVE MEANS OF DISPUTE RESOLU-
TION.—The term ‘‘alternative means of dispute reso-
lution’’ has the meaning given to such term in sec-
tion 571 of title 5, United States Code.
(2) FEDERAL
BANKING
AGENCY.—The term
‘‘Federal banking agency’’—
(A) has the meaning given to such term in
section 3 of the Federal Deposit Insurance Act;
and
(B) includes the National Credit Union
Administration.
(3) ISSUES IN CONTROVERSY.—The term ‘‘is-
sues in controversy’’ means—
(A) any final agency decision involving any
claim against an insured depository institution
or insured credit union for which the agency
has been appointed conservator or receiver;
(B) any final action taken by an agency in
the agency’s capacity as conservator or receiver
for an insured depository institution or insured
credit union; and
(C) any other issue for which the appro-
priate Federal banking agency determines that
alternative means of dispute resolution would be
appropriate.
SEC. 123. CLARIFICATION OF RESPA DISCLOSURE RE-
QUIREMENTS.
Section 6(a)(1)(B) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(a)(1)(B)) is
amended—
(1) by striking ‘‘(B) for each of the most re-
cent’’ and inserting ‘‘(B) at the choice of the person
making a federally related mortgage loan—
‘‘(i) for each of the most recent’’;
(2) by redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively, and moving the
left margin of such subclauses (as so redesignated)
2 ems to the right;
(3) by striking ‘‘and’’ at the end of subclause
(II) (as so redesignated by paragraph (2) of this sec-
tion) and inserting ‘‘or’’; and
(4) by inserting after clause (i) (as so des-
ignated by paragraph (1) of this section) the follow-
ing new clause:
‘‘(ii) a statement that the person mak-
ing the loan has previously assigned, sold,
or transferred the servicing of federally re-
lated mortgage loans; and’’.
SEC. 124. EXEMPTION OF BUSINESS LOANS FROM RESPA
REQUIREMENTS.
The Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2601 et seq.) is amended by inserting after
section 6 the following new section:
‘‘SEC. 7. EXEMPTED TRANSACTIONS.
‘‘This Act shall not apply to credit transactions in-
volving extensions of credit—
‘‘(1) primarily for business, commercial, or ag-
ricultural purposes; or
‘‘(2) to government or governmental agencies or
instrumentalities.’’.
SEC. 125. EXPEDITED PROCEDURES FOR BANK HOLDING
COMPANIES TO SEEK APPROVAL TO ENGAGE
IN CERTAIN ACTIVITIES.
Section 4 of the Bank Holding Company Act of 1956
(12 U.S.C. 1843) is amended by adding at the end the
following new subsection:
‘‘(j) NOTICE PROCEDURES FOR NONBANKING AC-
TIVITIES.—
‘‘(1) GENERAL NOTICE PROCEDURE.—
‘‘(A) NOTICE
REQUIREMENT.—No bank
holding company may engage in any non-
banking activity or acquire or retain ownership
or control of the shares of a company engaged
in activities described in subsection (c)(8) with-
out providing the Board with written notice of
the proposed transaction or activity at least 60
days before the transaction or activity is pro-
posed to occur or commence.
‘‘(B) CONTENTS OF NOTICE.—The notice
submitted to the Board shall contain such in-
formation as the Board shall prescribe by regu-
lation or by specific request in connection with
a particular notice.
‘‘(C) PROCEDURE FOR AGENCY ACTION.—
‘‘(i) NOTICE OF DISAPPROVAL.—Any
notice filed under this subsection shall be
deemed to be approved by the Board un-
less, before the end of the 60-day period
beginning on the date the Board receives a
complete notice under subparagraph (A),
the Board issues an order disapproving the
transaction or activity and setting forth
the reasons for disapproval.
‘‘(ii) 
EXTENSION
OF
PERIOD.—The
Board may extend the 60-day period re-
ferred to in clause (i) for an additional 30
days.
‘‘(D) 
APPROVAL
BEFORE
END
OF
PERIOD.—
‘‘(i) IN
GENERAL.—Any transaction
or activity may commence before the expi-
ration of any period for disapproval estab-
lished under this paragraph if the Board
issues a written notice of approval.
‘‘(ii) SHORTER PERIODS BY REGULA-
TION.—The Board may prescribe regula-
tions which provide for no notice under
this paragraph or for a shorter notice pe-
riod with respect to particular activities or
transactions.
‘‘(E) EXTENSION OF PERIOD.—In the case
of any notice to engage in, or to acquire or re-
tain ownership or control of shares of any com-
pany engaged in, any activity pursuant to sub-
section (c)(8) that has not been previously ap-
proved by order or regulation, the Board may
extend the notice period under this subsection
for an additional 90 days.
‘‘(2) GENERAL STANDARDS FOR REVIEW.—
‘‘(A) CRITERIA.—In connection with a no-
tice under this subsection, the Board may con-
sider the following criteria:
‘‘(i) The managerial resources of the
companies involved.
‘‘(ii) The adequacy of the companies
financial resources, including capital, giv-
ing consideration to the financial resources
and capital of others engaged in similar ac-
tivities.
‘‘(iii) Any material adverse effect on
the safety and soundness or financial con-
dition of any insured depository institution
affiliate.
‘‘(iv) Whether, performance of the ac-
tivity by a bank holding company or a sub-
sidiary of such company can reasonably be
expected to produce benefits to the public,
such as greater convenience, increased
competition, or gains in efficiency, that
outweigh possible adverse effects, such as
undue concentration of resources, de-
creased or unfair competition, conflicts of
interests, or unsound banking practices.
‘‘(B) 
REQUIREMENTS
FOR
DIS-
APPROVAL.—The Board shall not approve any
proposed transaction under this subsection if
the Board determines that any insured deposi-
tory institution subsidiary of the bank holding
company is engaging in any unsafe and un-
sound practice or is in an unsafe and unsound
condition.
‘‘(3) PUBLIC NOTICE RELATING TO NEW AC-
TIVITIES.—
‘‘(A) PUBLICATION
AND
OPPORTUNITY
FOR COMMENT.—The Board shall—
‘‘(i) publish in the Federal Register a
notice of the receipt by the Board of a no-
tice under paragraph (1) involving insur-
ance or any other nonbanking activity
which has not previously been determined
by the Board (by regulation or order) to be
closely related to banking as to be a proper
incident thereto; and
‘‘(ii) provide a reasonable period for
public comment.
‘‘(B) NOTICE OF APPROVAL BEFORE COM-
MENCEMENT
OF
ACTIVITY.—The Board shall
issue an order with respect to any such notice
before the commencement of the proposed in-
surance activity or the other new activity.’’.
SEC. 126. WAIVER OF RIGHT OF RESCISSION FOR CERTAIN
REFINANCING TRANSACTIONS.
The Board of Governors of the Federal Reserve Sys-
tem, in consultation with the consumer advisory council
to such Board, shall, within 6 months of the date of the
enactment of this Act, submit recommendations to the
Congress regarding whether a waiver or modification, at
the option of a consumer, of the right of rescission under
section 125 of the Truth in Lending Act with respect to
transactions which constitute a refinancing or consolida-
tion (with no new advances) of the principal balance then
due and any accrued and unpaid finance charges of an
existing extension of credit by a different creditor secured
by an interest in the same property would benefit consum-
ers more than existing law.
SEC. 127. SIMPLIFIED DISCLOSURE FOR EXISTING DEPOSI-
TORS.
(a) IN GENERAL.—Section 43(b)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1831t(b)(3)) is amend-
ed to read as follows:
‘‘(3) ACKNOWLEDGEMENT OF DISCLOSURE.—
‘‘(A) NEW DEPOSITORS.—With respect to
any depositor who was not a depositor at the
depository institution before June 19, 1994, re-
ceive any deposit for the account of such de-
positor only if the depositor has signed a writ-
ten acknowledgement that—
‘‘(i) the institution is not federally in-
sured; and
‘‘(ii) if the institution fails, the Fed-
eral Government does not guarantee that
the depositor will get back the depositor’s
money.
‘‘(B) CURRENT DEPOSITORS.—Receive any
deposit after the effective date of this para-
graph for the account of any depositor who was
a depositor before June 19, 1994, only if—
‘‘(i) the depositor has signed a written
acknowledgement described in subpara-
graph (A); or
‘‘(ii) the institution has complied with
the provisions of subparagraph (C) which
are applicable as of the date of the deposit.
‘‘(C) ALTERNATIVE PROVISION OF NOTICE
TO CURRENT DEPOSITORS.—
‘‘(i) IN GENERAL.—Transmit to each
depositor who was a depositor before June
19, 1994, and has not signed a written ac-
knowledgement described in subparagraph
(A)—
‘‘(I) a card containing the infor-
mation described in clauses (i) and
(ii) of subparagraph (A), and a line
for the signature of the depositor; and
‘‘(II) accompanying materials re-
questing the depositor to sign the
card, and return the signed card to
the institution.
‘‘(ii) MANNER
AND
TIMING
OF
NO-
TICE.—
‘‘(I) FIRST
NOTICE.—Make the
transmission described in clause (i)
via first class mail within 90 days
after June 19, 1994.
‘‘(II) SECOND NOTICE.—Make a
2d transmission described in clause (i)
via first class mail not less than 30
days and not more than 45 days after
a transmission to the depositor in ac-
cordance with subclause (I), if the in-
stitution has not, by the date of such
mailing, received from the depositor a
card referred to in clause (i)(I) which
has been signed by the depositor.
‘‘(III) THIRD NOTICE.—Make a
3d transmission described in clause (i)
via first class mail not less than 30
days and not more than 45 days after
a transmission to the depositor in ac-
cordance with subclause (II), if the in-
stitution has not, by the date of such
mailing, received from the depositor a
card referred to in clause (i)(I) which
has been signed by the depositor.’’.
(b) EFFECTIVE DATE.—Section 43(b)(3) of the Fed-
eral Deposit Insurance Act, as amended by subsection (a),
shall take effect in accordance with section 151(a)(2)(D)
of the Federal Deposit Insurance Corporation Improve-
ment Act of 1991.
SEC. 128. DEPOSIT BROKER REGISTRATION.
Section 29(g)(3) of the Federal Deposit Insurance
Act (12 U.S.C. 1831f(g)(3)) is amended—
(1) by inserting ‘‘that is not well capitalized’’
after ‘‘includes any insured depository institution’’;
(2) by inserting ‘‘such’’ after ‘‘any employee of
any’’; and
(3) by striking ‘‘having the same type of char-
ter’’.
SEC. 129. AGENCY OMBUDSMAN.
(a) ESTABLISHMENT REQUIRED.—Not later than
180-days after the date of the enactment of this Act, each
Federal banking agency and the National Credit Union
Administration shall appoint an ombudsman.
(b) DUTIES OF OMBUDSMAN.—The ombudsman for
any agency shall—
(1) act as a liaison between the agency and any
party with respect to the accuracy, consistency, or
quality of any examination or regulatory activity of
the agency that results in a material supervisory or
agency determination rendered by the agency, or
may result in an enforcement action by the agency,
with respect to such party;
(2) act as a liaison between the agency and any
party with respect to any problem such party may
have in dealing with the agency; and
(3) assure that safeguards exist to encourage
complainants to come forward and preserve con-
fidentiality.
(c) DEFINITIONS.—For purposes of this section—
(1) AGENCY.—The term ‘‘agency’’ means a
Federal banking agency or the National Credit
Union Administration.
(2) FEDERAL
BANKING
AGENCY.—The term
‘‘Federal banking agency’’ has the meaning given to
such term in section 3(z) of the Federal Deposit In-
surance Act.
(3) 
MATERIAL
SUPERVISORY
DETERMINA-
TION.—The term ‘‘material supervisory determina-
tion’’—
(A) means a supervisory determination re-
lating to an insured depository institution that
the Federal banking agency has determined to
be material under guidelines which the agency
shall issue; and
(B) does not include a determination by a
Federal banking agency to appoint a conserva-
tor or receiver for an insured depository institu-
tion or a decision to take action pursuant to
section 38 of the Federal Deposit Insurance
Act.
SEC. 130. ALTERNATIVE RULES FOR DISCLOSURES FOR
RADIO 
ADVERTISING 
OF 
CREDIT 
TRANS-
ACTIONS, 
DEPOSIT 
ACCOUNTS, 
AND
CONSUMER LEASES.
(a) OPEN END CREDIT PLANS.—Section 143 of the
Truth in Lending Act (15 U.S.C. 1663) is amended—
(1) by striking ‘‘No advertisement’’ and insert-
ing ‘‘(a) IN GENERAL.—No advertisement’’; and
(2) by adding at the end the following new sub-
sections:
‘‘(b) RADIO ADVERTISEMENTS.—In order to provide
a practical alternative for complying with the disclosure
requirements of subsection (a) at the option of a creditor,
an advertisement by radio broadcast to aid, promote, or
assist, directly or indirectly, the extension of consumer
credit under an open end credit plan shall be deemed to
meet the requirements of subsection (a) if the advertise-
ment, clearly and conspicuously—
‘‘(1) states any periodic rate that may be ap-
plied under the plan, expressed as an annual per-
centage rate;
‘‘(2) states that a variable periodic rate applies
under the plan, if such a rate applies; and
‘‘(3) includes—
‘‘(A) a referral to—
‘‘(i) a toll-free telephone number that
may be used by consumers to obtain the
information required under subsection (a)
in accordance with subsection (c); or
‘‘(ii) an advertisement that—
‘‘(I) appears in a publication in
general circulation in the community
served by the radio station (on which
such advertisement is broadcast) dur-
ing the period beginning 7 days before
the broadcast and ending 7 days after
the broadcast; and
‘‘(II) includes the information re-
quired to be disclosed under sub-
section (a); and
‘‘(B) in any case to which subparagraph
(A)(ii) applies, the name and date of the publi-
cation.
‘‘(c) ESTABLISHMENT OF TOLL-FREE TELEPHONE
NUMBER.—
‘‘(1) IN GENERAL.—In the case of an advertise-
ment described in subsection (b) or section 144(e) or
147(b) which includes a referral to a toll-free tele-
phone number in accordance with such subsection or
section, a creditor that offers the credit which such
advertisement aids, supports, or assists shall—
‘‘(A) establish the telephone number by not
later than the date on which any advertisement
is broadcast which includes a referral to the
number; and
‘‘(B) maintain the telephone number at
least until the end of the 7-day period begin-
ning on the date of any such broadcast.
‘‘(2) AVAILABILITY OF INFORMATION.—
‘‘(A) IN GENERAL.—The creditor referred
to in paragraph (1) shall provide the informa-
tion required under subsection (a) with respect
to the open end credit plan for which the toll-
free telephone line is established to any person
who calls such number in response to an adver-
tisement by radio broadcast.
‘‘(B) FORM OF INFORMATION.—The infor-
mation required to be provided under subpara-
graph (A) may be provided orally or by offering
to mail a written copy of such information to
such person.’’.
(b) CREDIT OTHER THAN UNDER OPEN END CRED-
IT PLANS.—Section 144 of the Truth in Lending Act (15
U.S.C. 1664) is amended—
(1) in subsection (a) by inserting ‘‘APPLICA-
TION GENERALLY.—’’ before ‘‘Except as provided’’;
(2) in subsection (b) by inserting ‘‘LIMITATION
ON APPLICATION.—’’ before ‘‘The provisions’’;
(3) in subsection (c) by inserting ‘‘DISCLO-
SURES REGARDING FINANCE CHARGES.—’’ before
‘‘If any’’;
(4) in subsection (d) by inserting ‘‘OTHER RE-
QUIRED DISCLOSURES.—’’ before ‘‘If any advertise-
ment’’; and
(5) by adding at the end the following new sub-
section:
‘‘(e) RADIO ADVERTISEMENTS.—In order to provide
a practical alternative for complying with the disclosure
requirements of subsection (d) at the option of the credi-
tor, an advertisement by radio broadcast to aid, promote,
or assist, directly or indirectly, any consumer credit sale,
loan, or other extension of credit subject to this title, other
than an open end consumer credit plan, shall be deemed
to meet the requirements of subsection (d) if the advertise-
ment, clearly and conspicuously—
‘‘(1) states the rate of the finance charge, ex-
pressed as an annual percentage rate;
‘‘(2) states that the rate of finance charge may
be increased after the date on which credit is ex-
tended, if such an increase is authorized under the
terms of the extension of credit to which the adver-
tisement relates; and
‘‘(3) includes—
‘‘(A) a referral to—
‘‘(i) a toll-free telephone number that
may be used by consumers to obtain, in ac-
cordance with section 143(c), the informa-
tion required under subsection (d); or
‘‘(ii) an advertisement that—
‘‘(I) appears in a publication in
general circulation in the community
served by the radio station (on which
such advertisement is broadcast) dur-
ing the period beginning 7 days before
the broadcast and ending 7 days after
the broadcast; and
‘‘(II) includes the information re-
quired to be disclosed under sub-
section (d); and
‘‘(B) in any case to which subparagraph
(A)(ii) applies, the name and date of the publi-
cation.’’.
(c) CREDIT PLANS SECURED BY CONSUMER’S PRIN-
CIPAL DWELLING.—Section 147 of the Truth in Lending
Act (15 U.S.C. 1665b) is amended—
(1) by redesignating subsections (b), (c), (d),
(e), and (f) as subsections (c), (d), (e), (f), and (g),
respectively; and
(2) by inserting after subsection (a) the follow-
ing:
‘‘(b) RADIO ADVERTISEMENTS.—In order to provide
a practical alternative for complying with the disclosure
requirements of subsection (a) at the option of a creditor,
an advertisement by radio broadcast to aid, promote, or
assist, directly or indirectly, the extension of consumer
credit under an open end consumer credit plan under
which extensions of credit are secured by a consumer’s
principal dwelling shall be deemed to meet the require-
ments of subsection (a) if the advertisement, clearly and
conspicuously—
‘‘(1) contains the information described in para-
graphs (2) and (3) of subsection (a); and
‘‘(2) includes—
‘‘(A) a referral to—
‘‘(i) a toll-free telephone number that
may be used by consumers to obtain the
information required under subsection (a)
in accordance with section 143(c); or
‘‘(ii) an advertisement that—
‘‘(I) appears in a publication in
general circulation in the community
served by the radio station (on which
such advertisement is broadcast) dur-
ing the period beginning 7 days before
the broadcast and ending 7 days after
the broadcast; and
‘‘(II) includes the information re-
quired to be disclosed under sub-
section (a); and
‘‘(B) in any case to which subparagraph
(A)(ii) applies, the name and date of the publi-
cation.’’.
(d) DEPOSITS SUBJECT TO TRUTH IN SAVINGS.—
Section 263(b) of the Truth in Savings Act (12 U.S.C.
4302(b)) is amended—
(1) by striking ‘‘EXCEPTION.—The Board
may—’’ and inserting ‘‘EXCEPTION.—
‘‘(1) IN GENERAL.—The Board may’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) 
RADIO
ADVERTISEMENTS.—Paragraphs
(4), (5), and (6) of subsection (a) shall not apply
with respect to an advertisement, announcement, or
solicitation (which is otherwise subject to such sub-
section) by radio broadcast.’’.
(e) CONSUMER LEASES.—Section 184 of the Truth
in Leasing Act is amended—
(1) by redesignating subsection (b) as sub-
section (d); and
(2) by inserting after subsection (a) the follow-
ing new subsections:
‘‘(b) RADIO ADVERTISEMENTS.—In order to provide
a practical alternative for complying with the disclosure
requirements of subsection (a) at the option of a lessor,
an advertisement by radio broadcast to aid, promote, or
assist, directly or indirectly, any consumer lease shall be
deemed to meet the requirements of subsection (a) if the
advertisement, clearly and conspicuously—
‘‘(1) states the information described in para-
graphs (1) and (2) of subsection (a);
‘‘(2) states the total amount of all payments re-
quired under the lease; and
‘‘(3) includes—
‘‘(A) a referral to—
‘‘(i) a toll-free telephone number that
may be used by consumers to obtain the
information required under subsection (a)
in accordance with subsection (c); or
‘‘(ii) an advertisement that—
‘‘(I) appears in a publication in
general circulation in the community
served by the radio station (on which
such advertisement is broadcast) dur-
ing the period beginning 7 days before
the broadcast and ending 7 days after
the broadcast; and
‘‘(II) includes the information re-
quired to be disclosed under sub-
section (a); and
‘‘(B) in any case to which subparagraph
(A)(ii) applies, the name and date of the publi-
cation.
‘‘(c) ESTABLISHMENT OF TOLL-FREE TELEPHONE
NUMBER.—
‘‘(1) IN GENERAL.—In the case of an advertise-
ment described in subsection (b) which includes a re-
ferral to a toll-free telephone number in accordance
with such subsection, a lessor who offers the
consumer lease which such advertisement aids, sup-
ports, or assists shall—
‘‘(A) establish the telephone number by not
later than the date on which an advertisement
is broadcast which includes a referral to the
number; and
‘‘(B) maintain the telephone number at
least until the end of the 7-day period begin-
ning on the date of any such broadcast.
‘‘(2) AVAILABILITY OF INFORMATION.—
‘‘(A) IN GENERAL.—The lessor referred to
in paragraph (1) shall provide the information
required under subsection (a) with respect to
the consumer lease for which the toll-free tele-
phone line is established to any person who
calls such number in response to an advertise-
ment by radio broadcast.
‘‘(B) FORM OF INFORMATION.—The infor-
mation required to be provided under subpara-
graph (A) may be provided orally or by offering
to mail a written copy of such information to
such person.’’.
Subtitle 
D—Reports, 
Studies,
Streamlined 
Regulatory 
Re-
quirements
SEC. 131. STUDY ON CAPITAL STANDARDS AND THEIR IM-
PACT ON THE ECONOMY.
(a) IN GENERAL.—The Secretary of the Treasury, in
consultation with the Federal banking agencies, shall con-
duct a study of the effect that the implementation of risk-
based capital standards, including the Basle international
capital standards, is having on—
(1) the safety and soundness of insured deposi-
tory institutions;
(2) the availability of credit, particularly to in-
dividuals and small businesses; and
(3) economic growth.
(b) REPORT.—
(1) IN GENERAL.—Before the end of the 1-year
period beginning on the date of the enactment of
this Act, the Secretary of the Treasury shall submit
a report to the Congress on the findings and conclu-
sions of the Secretary with respect to the study con-
ducted under subsection (a).
(2) RECOMMENDATIONS.—The report shall con-
tain any recommendations with respect to capital
standards that the Secretary of the Treasury may
determine to be appropriate.
(c) DEFINITIONS.—For purposes of this section, the
terms ‘‘Federal banking agency’’ and ‘‘insured depository
institution’’ have the meanings given to such terms in sec-
tion 3 of the Federal Deposit Insurance Act.
SEC. 132. STUDY OF THE CONSUMER CREDIT SYSTEM.
(a) IN GENERAL.—The Secretary of the Treasury, in
consultation with the Board of Governors of the Federal
Reserve System, the Administrator of the Small Business
Administration, the Secretary of Housing and Urban De-
velopment, and the other Federal banking agencies, shall
conduct a study of the manner in which and the extent
to which credit is made available for consumers and small
businesses in order to identify procedures which have the
effect of—
(1) reducing the amount of credit available for
such purposes or the number of persons eligible for
such credit; and
(2) increasing the level of consumer inconven-
ience, cost, and time delays in connection with the
extension of consumer and small business credit
without any corresponding benefit with respect to
the protection of consumers or small businesses or
the safety and soundness of insured depository insti-
tutions.
(b) REPORT.—
(1) IN GENERAL.—Before the end of the 1-year
period beginning on the date of the enactment of
this Act, the Secretary of the Treasury shall submit
report to the Congress on the findings and conclu-
sions of the Secretary with respect to the study con-
ducted under subsection (a).
(2) RECOMMENDATIONS.—The report shall con-
tain any recommendations for administrative action
that the Secretary of the Treasury may determine to
be appropriate.
(c) DEFINITIONS.—For purposes of this section, the
terms ‘‘Federal banking agency’’ and ‘‘insured depository
institution’’ have the meanings given to such terms in sec-
tion 3 of the Federal Deposit Insurance Act.
SEC. 133. STUDIES ON THE IMPACT OF THE PAYMENT OF
INTEREST ON RESERVES.
(a) FEDERAL RESERVE STUDY.—Not later than 180
days after the date of enactment of this Act, the Board
of Governors of the Federal Reserve System, in consulta-
tion with the Federal Deposit Insurance Corporation and
the National Credit Union Administration, shall conduct
a study and report to Congress on—
(1) the necessity, for monetary policy purposes,
of continuing to require insured depository institu-
tions to maintain sterile reserves;
(2) the appropriateness of paying a market rate
of interest to insured depository institutions on ster-
ile reserves or, in the alternative, providing for pay-
ment of such interest into the appropriate deposit
insurance fund;
(3) the monetary impact that the failure to pay
interest on sterile reserves has had on insured depos-
itory institutions, including an estimate of the total
dollar amount of interest and the potential income
lost by insured depository institutions; and
(4) the impact that the failure to pay interest
on sterile reserves has had on the ability of the
banking industry to compete with nonbanking pro-
viders of financial services and with foreign banks.
(b) BUDGETARY IMPACT STUDY.—Not later than
180 days after the date of enactment of this Act, the Di-
rector of the Office of Management and Budget and the
Director of the Congressional Budget Office, in consulta-
tion with the Committees on the Budget of the Senate and
the House of Representatives, shall each conduct a study
and report to the Congress on the budgetary impact of—
(1) paying a market rate of interest to insured
depository institutions on sterile reserves; and
(2) paying such interest into the respective
deposit insurance funds.
(c) INSURED DEPOSITORY INSTITUTION DEFINED.—
For purposes of this section, the term ‘‘insured depository
institution’’—
(1) has the meaning given to such term in sec-
tion 3(c) of the Federal Deposit Insurance Act; and
(2) includes an insured credit union (as defined
in section 101 of the Federal Credit Union Act).
SEC. 134. STREAMLINING OF REGULATORY REQUIRE-
MENTS.
(a) REVIEW OF REGULATIONS; REGULATORY UNI-
FORMITY.—During the 2-year period beginning on the
date of the enactment of this Act, each Federal banking
agency shall, consistent with principles of safety and
soundness and the public interest—
(1) conduct a review of the regulations and
written policies of that agency to—
(A) streamline those regulations and poli-
cies in order to improve efficiency, reduce un-
necessary costs, and eliminate unwarranted con-
straints on credit availability;
(B) remove inconsistencies and outmoded
and duplicative requirements; and
(C) with respect to regulations prescribed
pursuant to section 18(o) of the Federal De-
posit Insurance Act, consider the impact that
such standards have on the availability of credit
for small business, residential, and agricultural
purposes, and on low- and moderate-income
communities;
(2) work jointly with the other Federal banking
agencies to make uniform all regulations and guide-
lines implementing common statutory or supervisory
policies; and
(3) review what information is collected under
the fair housing data system, from which institu-
tions the information is collected, how the informa-
tion collected is used, and how that information
compares with information collected under the Home
Mortgage Disclosure Act of 1975.
(b) REVIEW OF DISCLOSURES.—The Board of Gov-
ernors of the Federal Reserve System, in consultation with
the consumer advisory council to such Board, shall—
(1) review the regulations and written policies
of the Board with respect to disclosures pursuant to
the Truth in Lending Act with regard to variable-
rate mortgages in order to simplify the disclosures
and make the disclosures more meaningful for con-
sumers; and
(2) implement any regulatory changes, if appro-
priate, consistent with applicable law.
(c) REPORT TO CONGRESS.—The Federal banking
agencies shall submit a joint report to the Congress annu-
ally for 3 years following the date of the enactment of this
Act detailing the progress of the agencies in carrying out
the requirements of subsection (a).
SEC. 135. CALL REPORT SIMPLIFICATION.
(a) MODERNIZATION OF CALL REPORT FILING AND
DISCLOSURE SYSTEM.—In order to reduce the adminis-
trative requirements pertaining to bank reports of condi-
tion, savings association financial reports, and bank hold-
ing company consolidated financial statements, and to im-
prove the timeliness of such reports and statements, the
Federal banking agencies shall—
(1) work jointly to develop a system under
which—
(A) insured depository institutions and
their affiliates may file such reports and state-
ments electronically; and
(B) the Federal banking agencies may
make such reports and statements available to
the public electronically; and
(2) not later than 1 year after the date of the
enactment of this Act, submit a report to the Con-
gress containing recommendations for legislation
that would enhance efficiency for filers and users of
such reports and statements.
(b) UNIFORM REPORTS AND SIMPLIFICATION OF IN-
STRUCTIONS.—The Federal banking agencies shall, con-
sistent with the principles of safety and soundness, work
jointly to—
(1) adopt a single form for the filing of core in-
formation required to be submitted under Federal
law to all such agencies in the reports and state-
ments referred to in subsection (a);
(2) simplify instructions accompanying such re-
ports and statements; and
(3) provide an index to the instructions that is
adequate to meet the needs of both filers and users.
(c) REVIEW OF CALL REPORT SCHEDULE.—Each
Federal banking agency shall—
(1) review the information required by sched-
ules supplementing the core information referred to
in subsection (b); and
(2) eliminate requirements that are not war-
ranted for reasons of safety and soundness or other
public purposes.
SEC. 136. ADMINISTRATIVE CONSIDERATION OF BURDEN
WITH NEW REGULATIONS.
(a) IN GENERAL.—In determining the effective date
and administrative compliance requirements for new regu-
lations that impose additional reporting, disclosure, or
other requirements on insured depository institutions,
each Federal banking agency (as defined in section 3 of
the Federal Deposit Insurance Act) shall consider, consist-
ent with the principles of safety and soundness and the
public interest—
(1) any administrative burdens that such regu-
lations would place on depository institutions, in-
cluding small depository institutions, and customers
of depository institutions; and
(2) the benefits of such regulations.
(b) ADEQUATE TRANSITION PERIOD FOR NEW REG-
ULATIONS.—
(1) IN GENERAL.—New regulations and amend-
ments to regulations prescribed by a Federal bank-
ing agency which impose additional reporting, disclo-
sures, or other new requirements on insured deposi-
tory institutions shall take effect on the 1st day of
the calendar quarter which begins at or after the
end of the 90-day period beginning on the date the
regulations are published in final form unless—
(A) the agency makes a finding that—
(i) an emergency exists which requires
the regulation to take effect before the 1st
day of such calendar quarter; or
(ii) a delay would have a substantial
impact upon the safety and soundness of
insured depository institutions;
(B) the regulation is issued by the Board
of Governors of the Federal Reserve System in
connection with the implementation of monetary
policy; or
(C) the regulation is required to take effect
on a date other than the date determined under
this paragraph pursuant to any other Act of
Congress.
(2) EARLY COMPLIANCE.—Any person who is
subject to a regulation described in paragraph (1)
may comply with the regulation before the effective
date of the regulation.
SEC. 137. ELIMINATION OF DUPLICATIVE FILINGS.
The Federal banking agencies (as defined in section
3(z) of the Federal Deposit Insurance Act) shall work
jointly—
(1) to eliminate, to the extent practicable, du-
plicative or otherwise unnecessary requests for infor-
mation in connection with applications or notices to
the agencies; and
(2) to harmonize, to the extent practicable, any
inconsistent publication and public notice require-
ments.
SEC. 138. RECOURSE AGREEMENTS.
The Federal banking agencies (as defined in section
3(z) of the Federal Deposit Insurance Act) shall jointly—
(1) review the manner in which loans sold with
recourse by insured depository institutions are treat-
ed under capital standards and other accounting
principles applicable with respect to such insured de-
pository institutions; and
(2) revise any such standard or principle in ac-
cordance with the findings and conclusions of the
agencies pursuant to such review before the end of
the 1-year period beginning on the date of the enact-
ment of this Act, except the revision may not be less
stringent than generally accepted accounting prin-
ciples.
SEC. 139. ANTITRUST REPORTS IN CONNECTION WITH
MERGER TRANSACTIONS.
(a) BANKING AGENCY REPORTS.—Section 18(c)(4)
of the Federal Deposit Insurance Act (12 U.S.C.
1828(c)(4)) is amended by adding at the end the following
new sentence: ‘‘Notwithstanding the preceding sentence,
a banking agency shall not be required to file a report
requested by the responsible agency under this paragraph
if the other banking agency advises the responsible agency
by the applicable date under the preceding sentence that
the report is not necessary because none of the effects de-
scribed in paragraph (5) is likely to occur as a result of
the transaction.’’.
(b) LIMITATION ON DELAY OF CONSUMMATION OF
TRANSACTION.—The last sentence of section 18(c)(6) of
the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6))
is amended by inserting before the period at the end the
following: ‘‘, unless the agency is advised by the other 2
banking agencies before such date that the reports re-
quired under paragraph (4) on the anticompetitive effects
of the transaction are not necessary because none of the
effects described in paragraph (5) is likely to occur as a
result of the transaction’’.
SEC. 140. BANKERS’ BANKS.
(a) OWNERSHIP
BY
DEPOSITORY
INSTITUTION
HOLDING COMPANIES.—
(1) PROVISION RELATING TO NATIONAL BANK
INVESTMENTS.—The 5th proviso of the 7th undesig-
nated paragraph of section 5136 of the Revised
Statutes of the United States (12 U.S.C. 24) is
amended by inserting ‘‘or by depository institution
holding companies (as defined in section 3(w) of the
Federal Deposit Insurance Act)’’ after ‘‘is owned ex-
clusively (except to the extent directors’ qualifying
shares are required by law) by depository institu-
tions’’.
(2) PROVISION RELATING TO NATIONAL BANK
CHARTERS.—Section 5169(b)(1) of the Revised
Statutes of the United States (12 U.S.C. 27(b)(1))
is amended by inserting ‘‘or by depository institution
holding companies (as defined in section 3(w) of the
Federal Deposit Insurance Act)’’ after ‘‘is owned ex-
clusively (except to the extent directors’ qualifying
shares are required by law) by other depository insti-
tutions’’.
(b) OWNERSHIP BY SAVINGS ASSOCIATIONS.—Sec-
tion 5(c)(4) of the Home Owners’ Loan Act (12 U.S.C.
1464(c)(4)) is amended by adding at the end the following
new subparagraph:
‘‘(E) BANKERS’ BANKS.—A Federal sav-
ings association may purchase, for the associa-
tion’s own account, shares of stock of a bank-
ers’ bank or holding company described in the
5th proviso of the 7th undesignated paragraph
of section 5136 of the Revised Statutes of the
United States or section 5169(b) of such Re-
vised Statutes on the same terms and condi-
tions a national bank may purchase such
shares.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) BANK
HOLDING
COMPANY
ACT.—Section
3(e) of the Bank Holding Company Act of 1956 (12
U.S.C. 1842(e)) is amended by striking the second
sentence.
(2) DEPOSITORY
INSTITUTION
MANAGEMENT
INTERLOCKS ACT AMENDMENT.—Section 202(3)(D)
of the Depository Institution Management Interlocks
Act (12 U.S.C. 3201(3)(D)) is amended by striking
‘‘the voting securities’’ the 1st place such term ap-
pears and all that follows through ‘‘the surplus of
such other bank; or’’ and inserting ‘‘which is a
bankers’ bank described in the 5th proviso of the
7th undesignated paragraph of section 5136 of the
Revised Statutes of the United States; or’’.
(d) SERVICES.—
(1) PROVISION RELATING TO NATIONAL BANK
INVESTMENTS.—The 5th proviso of the 7th undesig-
nated paragraph of section 5136 of the Revised
Statutes of the United States (12 U.S.C. 24) is
amended by striking ‘‘engaged exclusively in provid-
ing services for other depository institutions and
their officers, directors and employees’’ and inserting
‘‘engaged exclusively in providing services to or for
other depository institutions and their officers, direc-
tors and employees and providing correspondent
banking services at the request of other depository
institutions (any such bank or company is commonly
referred to as a ‘bankers’ bank’)’’.
(2) PROVISION RELATING TO NATIONAL BANK
CHARTERS.—Section 5169(b)(1) of the Revised
Statutes of the United States (12 U.S.C. 27(b)(1))
is amended by striking ‘‘engage exclusively in pro-
viding services for other depository institutions and
their officers, directors and employees’’ and inserting
‘‘engage exclusively in providing services to or for
other depository institutions and their officers, direc-
tors and employees and providing correspondent
banking services at the request of other depository
institutions (any such association is commonly re-
ferred to as a ‘bankers’ bank’)’’.
SEC. 141. DUE PROCESS PROTECTIONS RELATING TO AT-
TACHMENT OF ASSETS.
Section 8 of the Federal Deposit Insurance Act (12
U.S.C. 1818) is amended—
(1) by striking subsection (i)(4)(B) and insert-
ing the following new subparagraph:
‘‘(B) STANDARD.—
‘‘(i) SHOWING.—Rule 65 of the Fed-
eral Rules of Civil Procedure shall apply
with respect to any proceeding under sub-
paragraph (A) without regard to the re-
quirement of such rule that the applicant
show that the injury, loss, or damage is ir-
reparable and immediate.
‘‘(ii) STATE PROCEEDING.—If, in the
case of any proceeding in a State court,
the court determines that rules of civil pro-
cedure available under the laws of such
State provide substantially similar protec-
tions to such party’s right to due process
as Rule 65 (as modified with respect to
such proceeding by clause (i)), the relief
sought under subparagraph (A) may be re-
quested under the laws of such State.’’;
and
(2) in subsection (b), by adding the following
new paragraph:
‘‘(9) STANDARD
FOR
CERTAIN
ORDERS.—No
authority under this subsection or subsection (c) to
prohibit any institution-affiliated party from with-
drawing, transferring, removing, dissipating, or dis-
posing of any funds, assets, or other property may
be exercised unless the agency meets the standards
of Rule 65 of the Federal Rules of Civil Procedure
without regard to the requirement of such rule that
the applicant show that the injury, loss, or damage
is irreparable and immediate.’’.
SEC. 142. TIME LIMIT ON AGENCY CONSIDERATION OF
COMPLETED APPLICATIONS.
(a) IN GENERAL.—Each Federal banking agency (as
defined in section 3(z) of the Federal Deposit Insurance
Act) shall take final action on any application to the agen-
cy before the end of the 1-year period beginning on the
date a completed application is received by the agency.
(b) WAIVER BY APPLICANT AUTHORIZED.—Any per-
son submitting an application to a Federal banking agency
may waive the applicability of subsection (a) with respect
to such application at any time.
SEC. 143. TIMELY COMPLETION OF CRA REVIEW.
The comprehensive regulatory review of the Commu-
nity Reinvestment Act of 1977 that, as of the date of the
enactment of this Act, is being conducted by the Federal
banking agencies, shall be completed before the end of the
6-month period beginning on such date of enactment.
SEC. 144. REVISIONS OF STANDARDS.
Section 305(b)(1) of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C. 1828
note) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) ensure that such revisions take into
account the size and activities of the institu-
tions and do not cause undue reporting bur-
dens.’’.
SEC. 145. FEASIBILITY STUDY OF DATA BANK.
(a) IN GENERAL.—Not later than 18 months after
the date of the enactment of this Act, the Financial Insti-
tutions Examination Council shall study the feasibility, in-
cluding the costs and benefits to insured depository insti-
tutions, of establishing and maintaining a data bank for
reports submitted by any depository institution to a Fed-
eral banking agency and report the results of such study
to the Congress.
(b) ADDITIONAL FACTORS.—The study under sub-
section (a) shall consider the feasibility of—
(1) permitting depository institutions to file re-
ports directly with the data bank; and
(2) permitting Federal banking agencies, State
bank supervisors, and the public to obtain access to
any appropriate report on file with the data bank
which such agency or supervisor or the public is oth-
erwise authorized to receive.
TITLE II—COMMUNITY DEVEL-
OPMENT FINANCIAL INSTITU-
TIONS
SEC. 201. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Community Development Banking and Financial Institu-
tions Act of 1993’’.
(b) TABLE OF CONTENTS.—
TITLE II—COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
Sec. 201. Short title; table of contents.
Sec. 202. Findings and purpose.
Sec. 203. Definitions.
Sec. 204. Establishment of National Fund for Community Development Bank-
ing.
Sec. 205. Applications for assistance.
Sec. 206. Community development partnerships.
Sec. 207. Selection of institutions.
Sec. 208. Assistance provided by the Fund.
Sec. 209. Capitalization assistance to enhance liquidity.
Sec. 210. Encouragement of private entities.
Sec. 211. Clearinghouse function.
Sec. 212. Training assistance for organizing and operating community develop-
ment financial institutions.
Sec. 213. Recordkeeping, reports, and audits.
Sec. 214. Investment of receipts and proceeds.
Sec. 215. Enforcement provisions.
Sec. 216. Authorization of appropriations.
Sec. 217. Conforming amendment.
Sec. 218. Appointment of Community Enterprise Assessment Credit Board.
Sec. 219. Community development credit union assistance.
Sec. 220. Insured community development financial institution access to Fed-
eral home loan bank advances.
Sec. 221. Community investment program incentives.
Sec. 222. 30 percent lending cap increased.
SEC. 202. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) many of the Nation’s urban and rural com-
munities and Indian reservations face critical social
and economic problems arising in part from the lack
of economic growth, people living in poverty, and the
lack of employment and other opportunities;
(2) the restoration and maintenance of the
economies of these communities will require coordi-
nated development strategies, intensive supportive
services, and increased access to capital and credit
for development activities, including investment in
businesses, housing, commercial real estate, human
development, and other activities that promote the
long-term economic and social viability of the com-
munity;
(3) in many urban and rural communities, low-
and moderate-income neighborhoods, and Indian res-
ervations, there is a shortage of capital and credit
for business and affordable housing;
(4) access to capital and credit is essential to
unleash the untapped entrepreneurial energy of
America’s poorest communities and to empower indi-
viduals and communities to become self-sufficient;
and
(5) community development financial institu-
tions have proven their ability to identify and re-
spond to community needs for capital, credit, and
development services in the absence of, or as a com-
plement to, services provided by other lenders.
(b) PURPOSES.—The purposes of this title are as fol-
lows:
(1) To create a Community Development Bank-
ing and Financial Institutions Fund that will sup-
port a program for making investments in and pro-
viding assistance to community development finan-
cial institutions, including enhancing the liquidity of
community development financial institutions.
(2) To enable the Community Development
Banking and Financial Institutions Fund to—
(A) provide financial and technical assist-
ance, including training, to community develop-
ment financial institutions;
(B) serve as a national information clear-
inghouse; and
(C) be an institutional voice for community
development.
(3) To provide for the establishment of, or qual-
ification of existing financial institutions as, commu-
nity development financial institutions that, with the
support of the Community Development Banking
and Financial Institutions Fund, will provide capital,
credit, and development services to targeted invest-
ment areas or populations, and will promote eco-
nomic revitalization and community development.
SEC. 203. DEFINITIONS.
For purposes of this title—
(1) AFFILIATE.—The term ‘affiliate’ has the
meaning given to such term in section 2(k) of the
Bank Holding Company Act of 1956.
(2) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ has the meaning given to such term in section
3(q) of the Federal Deposit Insurance Act.
(3) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—
(A) IN GENERAL.—The term ‘‘community
development financial institution’’ means any
bank, savings association, depository institution
holding company (subject to section 205(d)),
credit union, microenterprise loan fund, com-
munity development corporation, community de-
velopment revolving loan fund, minority-owned
or other insured depository institution, or
nondepository organization that—
(i) has as the institution’s primary
mission the promotion of community devel-
opment through the provision of capital,
credit, or development services, directly,
through an affiliate, or through a commu-
nity development partner, in the institu-
tion’s investment areas or to targeted pop-
ulations; and
(ii) encourages, through representa-
tion on the institution’s governing board or
otherwise, the input of residents in the in-
vestment areas or the targeted populations.
(B) 
GOVERNMENT
AGENCIES
EX-
CLUDED.—The term ‘‘community development
financial institution’’ does not include any agen-
cy or instrumentality of the United States or
any agency or instrumentality of any State or
of any political subdivision of any State.
(4) COMMUNITY
DEVELOPMENT
PARTNER.—
The term ‘‘community development partner’’ means
a person (other than an individual) that provides
loans, equity investments, or development services,
including a depository institution holding company,
an insured depository institution, an insured credit
union, a nonprofit organization, a State or local gov-
ernment agency, and an investment company au-
thorized to operate pursuant to the Small Business
Investment Act of 1958.
(5) 
COMMUNITY
DEVELOPMENT
PARTNER-
SHIP.—The term ‘‘community development partner-
ship’’ means an agreement between a community de-
velopment financial institution and a community de-
velopment partner to provide development services
and loans or equity investments to an investment
area or targeted population.
(6) DEPOSITORY INSTITUTION HOLDING COM-
PANY.—The term ‘‘depository institution holding
company’’ has the meaning given to such term in
section 3(w) of the Federal Deposit Insurance Act.
(7) DEVELOPMENT SERVICES.—The term ‘‘de-
velopment services’’ means activities conducted by a
community development financial institution or com-
munity development partner that promote commu-
nity development by developing, supporting, and
strengthening the lending, investment, and capacity-
building activities undertaken by institutions, includ-
ing—
(A) business planning services;
(B) financial and credit counseling serv-
ices;
(C) marketing and management assistance;
and
(D) administrative activities associated
with lending or investment.
(8) INDIAN RESERVATION.—The term ‘‘Indian
reservation’’ includes public domain Indian allot-
ments, former Indian reservations in the State of
Oklahoma, land held by incorporated Native groups,
regional corporations and village corporations (as de-
fined in or established pursuant to the Alaska Na-
tive Claims Settlement Act), and dependent Indian
communities within the borders of the United
States, whether within the original or subsequently
acquired territory of the United States and whether
within or without the borders of a State.
(9) INDIAN TRIBE.—The term ‘‘Indian tribe’’
means any Indian tribe, band, pueblo, nation, or
other organized group or community, including any
Alaska Native village or regional or village corpora-
tion as defined in or established pursuant to the
Alaska Native Claims Settlement Act, which is rec-
ognized as eligible for the special programs and serv-
ices provided by the United States to Indians be-
cause of their status as Indians.
(10) INSURED COMMUNITY DEVELOPMENT FI-
NANCIAL INSTITUTION.—The term ‘‘insured commu-
nity development financial institution’’ means any
community development financial institution that is
an insured depository institution or an insured credit
union.
(11) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the meaning given to such
term in section 101(7) of the Federal Credit Union
Act.
(12) INSURED DEPOSITORY INSTITUTION.—The
term ‘‘insured depository institution’’ has the mean-
ing given to such term in section 3(c) of the Federal
Deposit Insurance Act.
(13) INVESTMENT
AREA.—The term ‘‘invest-
ment area’’ means an identifiable community, in-
cluding an Indian reservation, or identifiable com-
munities that—
(A) meet objective criteria of distress, in-
cluding the number of low-income families, the
extent of poverty, the extent of unemployment,
the extend of unmet credit needs, the degree of
availability of basic financial services, the de-
gree of limited access to capital and credit pro-
vided by existing financial institutions, and
other factors that the Fund determines to be
appropriate; or
(B) are located in an empowerment zone
or enterprise community designated under sec-
tion 1391 of the Internal Revenue Code of
1986.
(14) QUALIFIED
COMMUNITY
DEVELOPMENT
FINANCIAL INSTITUTION.—The term ‘‘qualified com-
munity development financial institution’’ means a
community development financial institution that
meets the requirements of paragraphs (2) through
(8) of section 205(b).
(15) STATE.—The term ‘‘State’’ has the mean-
ing given to such term in section 3 of the Federal
Deposit Insurance Act.
(16) SUBSIDIARY.—The term ‘‘subsidiary’’ has
the meaning given to such term in section 3 of the
Federal Deposit Insurance Act, except that a com-
munity development institution that is a corporation
shall not be considered to be a subsidiary of any in-
sured depository institution or bank holding com-
pany that controls less than 25 percent of the voting
shares of the corporation.
(17) TARGETED POPULATION.—The term ‘‘tar-
geted population’’ means an identifiable group or
identifiable groups of low-income or disadvantaged
persons that are underserved by existing financial
institutions, including an Indian tribe.
SEC. 204. ESTABLISHMENT OF NATIONAL FUND FOR COM-
MUNITY DEVELOPMENT BANKING.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is hereby established
a corporation to be known as the Community Devel-
opment Banking and Financial Institutions Fund
(hereafter in this title referred to as the ‘‘Fund’’)
that shall have the powers and responsibilities speci-
fied by this Act.
(2) SUCCESSION.—The Fund shall have succes-
sion until dissolved.
(3) RESERVATION
OF
POWER
OF
THE
CON-
GRESS.—The charter of the Fund may be revised,
amended, or modified by Congress at any time.
(4) OFFICES.—The offices of the Fund shall be
in Washington, D.C.
(b) BOARD OF DIRECTORS.—
(1) IN
GENERAL.—The powers and manage-
ment of the Fund shall be vested in a Board of Di-
rectors (hereafter referred to in this title as the
‘‘Board’’), which shall have 15 members.
(2) MEMBERS.—The members of the Board
shall consist of the following:
(A) The Secretary of Agriculture.
(B) The Secretary of Commerce.
(C) The Secretary of Housing and Urban
Development.
(D) The Secretary of the Interior.
(E) The Secretary of the Treasury.
(F) The Administrator of the Small Busi-
ness Administration.
(G) 9 private citizens, appointed by the
President, who shall be selected, to the maxi-
mum extent practicable, to provide for national
geographic representation and racial, ethnic,
and gender diversity, and shall consist of the
following individuals:
(i) 2 individuals who are officers of
existing community development financial
institutions.
(ii) 2 individuals who are officers of
insured depository institutions (as such
term is defined in section 3 of the Federal
Deposit Insurance Act).
(iii) 2 individuals who are officers of
national consumer or public interest orga-
nizations.
(iv) 2 individuals who have expertise
in community development.
(v) 1 individual who has personal ex-
perience and specialized expertise in the
unique lending and community develop-
ment issues confronted by Indian tribes on
Indian reservations.
(3) CHAIRPERSON.—The President shall ap-
point from among the members of the Board speci-
fied in paragraph (2)(G) a chairperson of the Board,
who shall serve at the pleasure of the President for
a term of 2 years.
(4) VICE-CHAIRPERSON.—The President shall
appoint from among the members specified in para-
graph (2) a vice-chairperson who will serve as chair-
person in the absence, disability, or recusal of the
chairperson. The vice-chairperson shall serve at the
pleasure of the President for a term of 2 years.
(5) TERMS OF APPOINTED MEMBERS.—
(A) IN
GENERAL.—Each member ap-
pointed pursuant to paragraph (2)(G) shall
serve at the pleasure of the President for a
term of 4 years, except as provided in subpara-
graph (C).
(B) VACANCIES.—Any member appointed
to fill a vacancy occurring before the expiration
of the term for which the previous member was
appointed shall be appointed for the remainder
of such term. Appointed members may continue
to serve following the expiration of their terms
until a successor is appointed and qualified.
(C) TERMS.—The terms of the initial ap-
pointed members shall be for 4 years and shall
begin on the date each member is appointed,
except that 2 of the members initially appointed
pursuant to paragraph (2)(G) shall be des-
ignated to serve at the pleasure of the President
for 5 years.
(6) ACTING OFFICIALS.—In the event of a va-
cancy or absence of the individual in any of the of-
fices described in subparagraphs (A) through (F) of
paragraph (2), the official acting in that office shall
be a member of the Board.
(7) AUTHORITY TO DELEGATE.—Each member
of the Board specified in subparagraphs (A) through
(F) of paragraph (2) may designate another official
who has been appointed by the President with the
advice and consent of the Senate within the same
agency to serve as a member in his or her stead.
(8) COMPENSATION.—
(A) GOVERNMENT OFFICERS OR EMPLOY-
EES.—Members of the Board who are otherwise
officers or employees of the United States shall
serve without additional compensation for their
duties as members, but shall be reimbursed by
the Fund for travel, per diem, and other nec-
essary expenses incurred in the performance of
their duties, in accordance with sections 5702
and 5703 of title 5, United States Code.
(B) 
APPOINTED
MEMBERS.—The 
ap-
pointed members of the Board shall be entitled
to receive compensation at the daily equivalent
of the rate for a position under Level IV of the
Executive Schedule under section 5315 of title
5, United States Code, and shall be reimbursed
by the Fund for travel, per diem, and other
necessary expenses incurred in the performance
of their duties, in accordance with sections
5702 and 5703 of title 5, United States Code.
(9) MEETINGS.—The Board shall hold meetings
at least quarterly. Special meetings of the Board
may be called by the Chairperson or on the written
request of 3 members of the Board. A majority of
the members of the Board in office shall constitute
a quorum.
(c) OFFICERS AND EMPLOYEES.—
(1) CHIEF EXECUTIVE OFFICER.—The Board
shall appoint a chief executive officer who shall be
responsible for the management of the Fund and
such other duties deemed appropriate by the Board.
(2) CHIEF
FINANCIAL
OFFICER.—The Board
shall appoint a chief financial officer who shall over-
see all of the financial management activities of the
Fund.
(3) INSPECTOR
GENERAL.—The Board shall
also appoint an inspector general.
(4) OTHER OFFICERS AND EMPLOYEES.—The
Board may appoint such other officers and employ-
ees of the Fund as the Board determines to be nec-
essary or appropriate.
(5) APPOINTMENT PROVISION AND RATES OF
PAY.—The chief executive officer, chief financial of-
ficer, and up to 3 other officers of the Fund may
be—
(A) appointed without regard to the provi-
sions of title 5 of the United States Code, gov-
erning appointments in the Federal service; and
(B) subject to paragraph (6), compensated
without regard to chapter 51 and subchapter
III of chapter 53 of title 5 of the United States
Code,
(6) MAXIMUM RATES OF PAY.—The rate of pay
for the chief executive officer shall not exceed the
rate for a position under Level II of the Executive
Schedule under section 5313 of title 5 of the United
States Code and the rate of pay for the remaining
4 officers shall not exceed the rate for a position
under Level IV of the Executive Schedule under sec-
tion 5315 of title 5 of the United States Code.
(d) GENERAL POWERS.—In carrying out the Fund’s
powers and duties, the Fund—
(1) shall have all necessary and proper powers
to carry out the Fund’s authority under this title;
(2) may adopt, alter, and use a corporate seal,
which shall be judicially noticed;
(3) may sue and be sued in the Fund’s cor-
porate name and complain and defend in any court
of competent jurisdiction;
(4) may adopt, amend, and repeal bylaws and
regulations governing the manner in which the
Fund’s business may be conducted and shall have
power to make such rules and regulations as may be
necessary or appropriate to implement the provisions
of this title;
(5) may enter into and perform such agree-
ments, contracts, and transactions as may be
deemed necessary or appropriate to the conduct of
activities authorized under this title;
(6) may determine the character of and neces-
sity for its expenditures and the manner in which
they shall be incurred, allowed, and paid;
(7) may utilize or employ the services of person-
nel of any agency or instrumentality of the United
States with the consent of the agency or instrumen-
tality 
concerned 
on 
a 
reimbursable 
or
nonreimbursable basis; and
(8) may execute all instruments necessary or
appropriate in the exercise of any of the Fund’s
functions under this title and may delegate to the
members of the Board, to the chief executive officer,
or the officers of the Fund such of the Fund’s pow-
ers and responsibilities as it deems necessary or ap-
propriate for the administration of the Fund.
(e) 
WHOLLY-OWNED
GOVERNMENT
CORPORA-
TION.—
(1) IN GENERAL.—The Fund shall be a wholly-
owned Government corporation in the executive
branch and shall be treated in all respects as an
agency of the United States, except to the extent
this title provides otherwise.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—Section 9101(3) of title 31, United States
Code, is amended—
(A) by redesignating paragraphs (B)
through (M) as paragraphs (C) through (N),
respectively; and
(B) by inserting after paragraph (A) the
following:
‘‘(B) the Community Development Bank-
ing and Financial Institutions Fund.’’.
(3) Section 9107(b) of title 31, United States
Code, shall not apply to deposits of the Fund made
pursuant to section 207.
(f) LIMITATION OF FUND AND FEDERAL LIABIL-
ITY.—The liability of the Fund and of the United States
Government arising out of any investment in a community
development financial institution in accordance with this
title shall be limited to the amount of the investment and
the Fund shall be exempt from any assessments and other
liabilities that may be imposed on controlling or principal
shareholders by any Federal law or the law of any State.
A community development financial institution that re-
ceives assistance pursuant to this title shall not be deemed
to be an agency, department, or instrumentality of the
United States.
(g) PROHIBITION OF ISSUANCE OF SECURITIES.—
The Fund may not issue stock, bonds, debentures, notes,
or other securities.
SEC. 205. APPLICATIONS FOR ASSISTANCE.
(a) FORM AND PROCEDURES.—
(1) IN GENERAL.—An application for assistance
under this title shall be submitted by an applicant
in such form and in accordance with such proce-
dures as the Board shall establish.
(2) REGULATIONS.—The Board shall publish
regulations with respect to application requirements
and procedures not later than 210 days after enact-
ment of this title.
(b) MINIMUM REQUIREMENTS.—Except as provided
in section 209, the Board shall require that the applica-
tion—
(1) demonstrate to the satisfaction of the Board
that the applicant is, or upon the receipt of a char-
ter will be, a community development financial insti-
tution;
(2) demonstrate that the applicant will serve—
(A) a targeted population; or
(B) an area which is an investment area;
(3) in the case of an applicant that has pre-
viously received assistance under this title, dem-
onstrate that the applicant—
(A) has successfully carried out its respon-
sibilities under this title;
(B) has become or is about to become an
entity that will not be dependent upon assist-
ance from the Fund for continued viability; and
(C) will expand its operations into a new
investment area, offer new services, or will in-
crease the volume of its current business;
(4) in the case of a community development fi-
nancial institution with existing operations, dem-
onstrate a record of success of serving investment
areas or targeted populations;
(5) include a detailed and comprehensive strate-
gic plan for the organization that contains—
(A) a business plan of at least 5 years that
demonstrates the applicant is properly managed
and has the capacity to form and operate a
community development financial institution
that is, or will become, an entity that will not
be dependent upon assistance from the Fund
for continued viability;
(B) a statement that the applicant has, or
will have, in its charter or other governing doc-
uments a primary commitment to community
development, or other evidence of a prior his-
tory and a continuing affirmation of a primary
commitment to community development;
(C) an analysis of the needs of the invest-
ment areas or targeted populations and a strat-
egy for how the applicant will attempt to meet
those needs;
(D) a plan to coordinate use of assistance
from the Fund with existing assistance pro-
grams of the Federal Government, State and
local governments, Indian tribes, and govern-
ment-sponsored enterprises and with private
sector financial services;
(E) a statement that the proposed activi-
ties of the applicant are consistent with existing
economic, community, and housing development
plans adopted by or applicable to the invest-
ment areas;
(F) a description of how the applicant will
affiliate, network, or otherwise coordinate with
a full range of community organizations and fi-
nancial institutions which provide, or will pro-
vide, capital, credit, or secondary markets in
order to assure that banking, economic develop-
ment, investment, affordable housing, and other
related services will be available within the in-
vestment areas or to targeted populations; and
(G) such other information as the Board
deems appropriate for inclusion in the strategic
plan;
(6) demonstrate that the applicant will carry on
its activities consistent with the purposes of this title
within an investment area or with respect to a tar-
geted population;
(7) include a detailed and specific statement of
applicant’s plans and likely sources of funds to
match the amount of assistance from the Fund with
funds from private sources in accordance with the
requirements of section 208(e); and
(8) include such other information as the Board
may require.
(c) PRE-APPLICATION OUTREACH PROGRAM.—The
Fund shall provide for an outreach program to identify
and provide information to potential applicants and to in-
crease the capacity of potential applicants to meet the ap-
plication and other requirements of this title.
(d) CONDITIONS FOR QUALIFICATION OF HOLDING
COMPANIES.—
(1) CONSOLIDATED TREATMENT.—A depository
institution holding company may qualify as a com-
munity development financial institution only if the
holding company and the holding company’s subsidi-
aries collectively satisfy the requirements of clauses
(i) and (ii) of subparagraph (A) of section
203(3)(A).
(2) EXCLUSION OF SUBSIDIARY FOR FAILURE
TO
MEET
CONSOLIDATED
TREATMENT
RULE.—No
subsidiary of a depository institution holding com-
pany may qualify as a community development fi-
nancial institution if the holding company and the
company’s subsidiaries collectively do not meet the
requirements of clauses (i) and (ii) of subparagraph
(A) of section 203(3)(A).
SEC. 206. COMMUNITY DEVELOPMENT PARTNERSHIPS.
(a) APPLICATION.—An application for assistance
may be filed jointly by a community development financial
institution and a community development partner to carry
out a community development partnership.
(b) APPLICATION REQUIREMENTS.—The Fund shall
require a community development partnership application
to—
(1) meet the minimum requirements established
for community development financial institutions
under section 205(b), except that the criteria speci-
fied in paragraph (1) and subparagraphs (A) and
(B) of paragraph (5) of such section shall not apply
to the community development partner;
(2) describe how each coapplicant will partici-
pate in carrying out the community development
partnership and how the partnership will enhance
activities serving the investment area or targeted
population; and
(3) demonstrate that the community develop-
ment partnership activities are consistent with the
strategic plan submitted by the community develop-
ment financial institution coapplicant.
(c) SELECTION CRITERIA.—The Fund shall consider
a community development partnership application based
on the selection criteria set out in section 207, except that
the criterion specified in subparagraphs (A) and (L) of
subsection (a)(2) of such section shall not apply to the
community development partner.
(d) LIMITATION
ON
DISTRIBUTION
OF
ASSIST-
ANCE.—Assistance provided upon approval of an applica-
tion under this section shall be distributed only to the
community development financial institution coapplicant,
and shall not be used to fund any activities carried out
directly by the community development partner or an affil-
iate of the partner.
(e) PERFORMANCE GOALS.—The Fund shall nego-
tiate performance goals for each community development
partnership 
in 
the 
manner 
provided 
in 
section
208(f)(3)(B). Such performance goals shall be incor-
porated into the performance goals of the community de-
velopment financial institution coapplicant.
(f) OTHER REQUIREMENTS AND LIMITATIONS.—All
other requirements and limitations imposed by this sub-
title on a community development financial institution as-
sisted under this subtitle shall apply (in the manner that
the Fund determines to be appropriate) to assistance pro-
vided to carry out community development partnerships.
The Fund may establish additional guidelines and restric-
tions on the use of Federal funds to carry out community
development partnerships.
SEC. 207. SELECTION OF INSTITUTIONS.
(a) SELECTION CRITERIA.—
(1) IN GENERAL.—Except as provided in sec-
tion 209, the Board shall, in the Board’s discretion,
select applications that meet the requirements of
section 205 and award assistance from the Fund in
accordance with section 208.
(2) FACTORS TO BE CONSIDERED.—In selecting
applications, the Board shall consider applications
based on the following factors and such other factors
as the Board may determine to be appropriate:
(A) The likelihood of success of the appli-
cant in forming and operating a community de-
velopment financial institution.
(B) The range and comprehensiveness of
the capital, credit, and development services to
be provided by the applicant.
(C) The extent of the need, as measured
by objective criteria of distress, within the in-
vestment areas or targeted populations for the
types of activities proposed by the applicant.
(D) The likelihood that the proposed ac-
tivities will benefit a significant portion of the
investment areas or targeted populations or, in
the case of a community development financial
institution with existing operations, evidence of
a record of success in serving investment areas
or targeted populations.
(E) The extent to which the applicant will
concentrate its activities on serving low and
very low-income families.
(F) The evidence of the extent of a broad
cross-section of support from the investment
areas or targeted populations.
(G) The experience and background of the
proposed management team.
(H) The amount of legally enforceable
commitments available at the time of applica-
tion to meet or exceed the matching require-
ments under section 208(e) and the strength of
the plan for raising the balance of the match.
(I) In the case of applicants that have pre-
viously received assistance pursuant to this
title, the extent to which they have met or ex-
100
ceeded the performance goals established in
connection with such assistance.
(J) The extent to which the proposed ac-
tivities will expand the employment base within
the investment areas or the targeted popu-
lations.
(K) The extent to which the applicant is,
or will be, community-owned or community-gov-
erned.
(L) Whether the applicant is, or will be-
come, an insured community development fi-
nancial institution.
(M) Whether the applicant is, or will be lo-
cated, in an empowerment zone or enterprise
community designated under section 1391 of
the Internal Revenue Code of 1986 or a rural
or urban area which is not an empowerment
zone or enterprise community and which has a
median income of 80 percent or less of the na-
tional median income.
(N) In the case of an institution that is
not an insured community development finan-
cial institution, the extent to which the institu-
tion has or will have the ability to increase its
resources through affiliation with a secondary
101
market, insured depository institution, or other
financial intermediary in order to multiply the
amount of capital or credit available for com-
munity development.
(O) In the case of an insured depository
institution or insured credit union applicant,
whether the institution—
(i) has or will have a substantial affili-
ation with an entity or network of entities
that are community development financial
institutions; and
(ii) has a comprehensive plan for pro-
viding meaningful financial assistance to
such an entity or network of entities.
(b) GEOGRAPHIC DIVERSITY.—
(1) IN GENERAL.—In addition to the above, in
making its selections the Board shall seek to fund
a geographically diverse group of applicants, which
shall include applicants from nonmetropolitan and
rural areas and small cities.
(2) GOAL FOR FUNDING.—The Board should
seek to provide funding for applicants which are
serving nonmetropolitan and rural areas and small
cities with no less than one quarter of the funds
available to the Board in any year.
102
(c) PUBLICATION REQUIREMENT.—The Board shall
publish regulations with respect to its selection criteria not
later than 210 days after the date of the enactment of
this title.
SEC. 208. ASSISTANCE PROVIDED BY THE FUND.
(a) PURPOSE OF ASSISTANCE.—
(1) GENERAL
PURPOSES.—The Fund shall
work to promote an environment hospitable to busi-
ness formation, economic growth, community devel-
opment, and affordable housing in distressed com-
munities.
(2) COORDINATION
WITH
OTHER
AGENCIES
AND
PROGRAMS.—The Fund shall coordinate the
Fund’s activities with existing Federal and other
community and economic development programs.
(3) ASSISTANCE TO INSTITUTIONS AND PART-
NERSHIPS.—Assistance may be provided to an exist-
ing qualified community development financial insti-
tution or community development partnership to—
(A) expand the institution’s or partner-
ship’s activities in order to serve investment
areas or targeted populations not currently
served by another qualified community develop-
ment financial institution or community devel-
103
opment partnership receiving assistance under
this section;
(B) expand the volume of the institution’s
or partnership’s activities consistent with the
purposes of this title;
(C) form a new entity to undertake activi-
ties consistent with the purposes of this title; or
(D) assist an existing entity to modify the
institution’s or partnership’s structure or activi-
ties in order to undertake activities consistent
with the purposes of this title.
(b) TYPES OF ASSISTANCE.—
(1) FINANCIAL ASSISTANCE.—The Fund may
provide financial assistance, and make commitments
to provide financial assistance, to qualified commu-
nity development financial institutions or community
development partnerships through equity invest-
ments, loans, deposits, membership shares, and
grants.
(2) TECHNICAL ASSISTANCE.—The Fund may
also provide technical assistance, including training,
and grants for technical assistance to qualified com-
munity development financial institutions or commu-
nity development partnerships.
104
(3) ALLOCATION.—The allocation of awards of
assistance between insured and uninsured commu-
nity development financial institutions shall be in the
discretion of the Board.
(4) RULES
RELATING
TO
EQUITY
INVEST-
MENTS.—
(A) LIMITATION
ON
EQUITY
INVEST-
MENT.—The Fund shall structure financial as-
sistance to a qualified community development
financial institution in such a manner that the
provision of such assistance does not result in
the Fund’s—
(i) ownership of more than 50 percent
of the equity of such institution; or
(ii) control of the operations of such
institution.
(B) FUND DEEMED NOT TO CONTROL.—
Notwithstanding any other provision of law, the
Fund shall not be deemed to control a qualified
community development financial institution by
reason of any assistance provided under this
title for the purpose of any other applicable law
to the extent the Fund complies with paragraph
(1).
105
(C) FORM OF INVESTMENT.—With respect
to equity investments, the Fund shall hold only
transferable, nonvoting investments, except that
such equity investments may provide for con-
vertibility to voting stock upon transfer by the
Fund.
(5) DEPOSITS NOT SUBJECT TO COLLATERAL
OR
SECURITY
REQUIREMENTS.—Notwithstanding
any other provision of law, deposits made pursuant
to this section in qualified insured community devel-
opment financial institutions shall not be subject to
any requirement for collateral or security.
(6) LIMITATIONS
ON
OBLIGATIONS.—Direct
loan obligations may be incurred only to the extent
that appropriations of budget authority to cover
their costs, as defined in section 502 of the Congres-
sional Budget Act of 1974, are made in advance.
(c) PURPOSE OF FINANCIAL ASSISTANCE.—Financial
assistance made available under this title may be used by
assisted institutions to develop or support—
(1) commercial facilities that enhance revitaliza-
tion, community stability, or job creation and reten-
tion efforts;
(2) business creation and expansion efforts
that—
106
(A) create or retain jobs for low-income
people;
(B) enhance the availability of products
and services to low-income people; or
(C) create or facilitate the retention of
businesses owned by low-income people or resi-
dents of a targeted area;
(3) community facilities that provide benefits to
low-income people or enhance community stability;
(4) the provision of basic financial services to
low-income people or residents of a targeted area;
(5) the provision of development services;
(6) home ownership opportunities that are af-
fordable to low-income households;
(7) rental housing that is principally affordable
to low-income households; and
(8) other activities determined to be appropriate
by the Fund.
(d) AMOUNT OF ASSISTANCE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the Fund may provide—
(A) not to exceed $5,000,000 of assistance
per application to any 1 qualified insured com-
munity development financial institution, in-
107
cluding such institution’s affiliate or community
development partnership; and
(B) not to exceed $2,000,000 per applica-
tion to any other qualified community develop-
ment financial institution, including such insti-
tution’s affiliate or community development
partnership.
(2) EXCEPTION.—In the case of an existing
community development financial institution that
proposes to serve an investment area or targeted
population outside of any State or metropolitan area
presently served by the institution, the Fund shall
have the discretion to provide assistance in an
amount exceeding the maximum amount established
in paragraph (1) if—
(A) the additional amount is used to estab-
lish affiliates to serve such investment area or
targeted population;
(B) the existing community development fi-
nancial institution is located in a State other
than that of the new affiliate; and
(C) no other application for assistance has
been submitted to the Board under which the
needs of the target community could be met.
108
(3) AUTHORITY TO SET MINIMUM AMOUNTS OF
ASSISTANCE.—The Fund shall have the authority to
set minimum amounts of assistance per institution.
(e) MATCHING REQUIREMENTS.—
(1) INSURED
COMMUNITY
DEVELOPMENT
FI-
NANCIAL
INSTITUTIONS
OR
PARTNERSHIPS.—Sub-
ject to paragraph (3), the Fund may provide no as-
sistance to qualified insured community development
financial institutions or community development
partnerships unless each dollar provided by the
Fund is matched by no less than 1 dollar of equity,
deposits or membership shares.
(2) OTHER MATCHING REQUIREMENTS.—Sub-
ject to paragraph (3), the Fund shall require a
match for all other assistance, the amount and form
of which shall be in the discretion of the Fund.
(3) NO MATCHING REQUIREMENTS FOR CER-
TAIN TYPES OF ASSISTANCE.—The Fund may not
establish matching requirements with respect to as-
sistance provided in the form of deposits or member-
ship shares of $100,000 or less, technical assistance,
or grants for technical assistance.
(4) LEGALLY ENFORCIBLE COMMITMENTS RE-
QUIRED.—
109
(A) IN GENERAL.—The Fund shall provide
no assistance except technical assistance or
grants for technical assistance until a qualified
community development financial institution or
community development partnership has se-
cured legally enforceable commitments for the
entire match required.
(B) COORDINATION WITH FUND AUTHOR-
ITY
TO
MAKE
COMMITMENTS.—Subparagraph
(A) shall not restrict the authority of the Fund
under subsection (b)(1) to make a commitment
to provide financial assistance to a qualified
community development financial institution or
community development partnership to the ex-
tent such commitment is contingent on the in-
stitution or partnership meeting the require-
ments of this subsection.
(5) FORM OF PAYMENTS.—Assistance may be
provided in 1 lump sum, or over a period of time,
as determined by the Fund.
(6) OTHER FEDERAL ASSISTANCE MAY NOT BE
TREATED AS MATCHING FUNDS.—No funds or as-
sistance provided to any qualified community devel-
opment financial institution or community develop-
ment partnership by any agency or instrumentality
110
of the Federal Government may be taken into ac-
count or otherwise treated as matching funds for
purposes of this subsection.
(f) TERMS AND CONDITIONS.—
(1) IN GENERAL.—The Fund shall provide as-
sistance authorized under this title in such form and
subject to such restrictions as are necessary to en-
sure that, to the maximum extent practicable—
(A) all assistance granted is used by the
qualified community development financial in-
stitution or community development partnership
in a manner consistent with the purposes of
this title;
(B) qualified community development fi-
nancial institutions or community development
partnerships receiving assistance that are not
otherwise regulated by the Federal Government
or by a State government are financially and
managerially sound;
(C) assistance results in a net increase in
capital, credit, and development services, both
nationally and in the local communities in
which assistance is provided; and
(D) assistance is provided in a manner
that encourages affiliations and partnerships
111
between insured depository institutions, second-
ary markets or other sources of credit or lever-
age and local organizations dedicated to com-
munity development.
(2) CONSULTATION
WITH
BANKING
REGU-
LATORS.—Before providing assistance to a qualified
insured community development financial institution,
the Board shall consult with the appropriate Federal
banking agency or, in the case of an insured credit
union, the National Credit Union Administration.
(3) ASSISTANCE AGREEMENT.—
(A) IN GENERAL.—The Board shall impose
restrictions on the use of assistance through a
stock purchase agreement, share purchase
agreement, or through a contract entered into
in consideration for the provision of assistance.
(B) PERFORMANCE GOALS.—
(i) REQUIRED.—Any agreement or
contract referred to in subparagraph (A)
shall require institutions assisted under
this title to comply with performance goals.
(ii) NEGOTIATION
OF
GOALS.—The
performance goals shall be negotiated be-
tween the Board and each qualified com-
munity development financial institution
112
receiving assistance based upon the strate-
gic plan submitted pursuant to section
205(b)(5).
(iii) RENEGOTIATION.—The perform-
ance goals may be renegotiated jointly as
necessary or appropriate, subject to sub-
paragraph (C) of this section.
(iv) CONSULTATION
WITH
BANKING
AGENCIES.—Activity levels for insured
community development financial institu-
tions shall be determined by the Board in
consultation with the appropriate Federal
banking agency or, in the case of an in-
sured credit union, with the National Cred-
it Union Administration.
(C) CONTRACT SANCTIONS.—
(i) IN GENERAL.—Any agreement or
contract referred to in subparagraph (A)
shall specify sanctions available to the
Board, in the Board’s discretion, in the
event of noncompliance with the purposes
of this title or the terms of the agreement
or contract.
(ii) 
CERTAIN
SANCTIONS
AVAIL-
ABLE.—The sanctions may include revoca-
113
tion of approval of the application, termi-
nating or reducing future assistance, re-
quiring repayment of assistance, and re-
quiring changes to the performance goals
imposed pursuant to subparagraph (B) or
to the strategic plan submitted pursuant to
section 205(b)(5).
(iii) CONSULTATION
WITH
BANKING
AGENCIES.—In the case of an insured com-
munity development financial institution,
the Board shall consult with the appro-
priate Federal banking agency or, in the
case of an insured credit union, the Na-
tional Credit Union Administration, before
imposing sanctions pursuant to this para-
graph.
(4) REVIEW.—
(A) IN GENERAL.—At least annually, the
Fund shall review the performance of each as-
sisted qualified community development finan-
cial institution or community development part-
nership in carrying out the institution’s or part-
nership’s strategic plan and performance goals.
(B) CONSULTATION
WITH
TRIBAL
GOV-
ERNMENTS.—In reviewing the performance of
114
any assisted qualified community development
financial institution whose investment area in-
cludes an Indian reservation, the Board shall
consult with, and seek input from, any appro-
priate tribal government.
(5) REPORTING.—The Board shall require each
qualified community development financial institu-
tion receiving assistance to submit an annual report
to the Fund on the institution’s activities and finan-
cial condition, the institution’s success in meeting
performance goals, and the institution’s compliance
with the other requirements of this title.
(g) AUTHORITY TO SELL EQUITY INVESTMENTS AND
LOANS.—The Board shall have the authority at any time
to sell its investments and loans and may, in its discretion,
retain the power to enforce limitations on assistance en-
tered into in accordance with the requirements of this title.
(h) NO AUTHORITY TO LIMIT SUPERVISION AND
REGULATION.—No provision of this title shall affect any
authority of the appropriate Federal banking agency or,
in the case of an insured credit union, the National Credit
Union Administration, to supervise and regulate an in-
sured community development financial institution.
115
SEC. 209. CAPITALIZATION ASSISTANCE TO ENHANCE LI-
QUIDITY.
(a) ASSISTANCE.—
(1) IN GENERAL.—Notwithstanding the provi-
sions of section 208, the Fund may provide assist-
ance for the purpose of providing capital to organi-
zations that will purchase loans or otherwise en-
hance the liquidity of community development finan-
cial institutions if—
(A) the primary purpose of such organiza-
tions is to promote community development;
and
(B) any assistance received is matched
with funds—
(i) from sources other than the Fed-
eral Government;
(ii) on the basis of not less than $1
for each dollar provided by the Fund; and
(iii) that are comparable in form and
value to the assistance provided by the
Fund.
(2) LIMITATION ON OTHER ASSISTANCE.—An
organization which receives assistance under this
section may not receive other financial or technical
assistance under this subtitle.
116
(b) SELECTION.—The selection of organizations to
receive assistance under this section shall be at the discre-
tion of the Fund and in accordance with criteria estab-
lished by the Fund. In establishing such criteria, the Fund
shall take into account the criteria contained in sections
205(b) and 207, as appropriate.
(c) AMOUNT OF ASSISTANCE.—
(1) 
MAXIMUM
AMOUNT
LIMITATION.—The
Fund may provide a total of not more than
$5,000,000 of assistance to an organization under
this section during any 3-year period.
(2) FORM
OF
PAYMENT.—Assistance may be
provided in a lump sum or over a period of time, as
determined by the Fund.
(d) AUDIT AND REPORT REQUIREMENTS.—
(1) IN
GENERAL.—Organizations that receive
assistance from the Fund in accordance with this
section shall—
(A) submit to the Fund not less than once
in every 18-month period, financial statements
audited by an independent certified public ac-
countant;
(B) submit an annual report on its activi-
ties; and
117
(C) keep such records as may be necessary
to disclose the manner in which any assistance
under this section is used.
(2) ACCESS.—The Fund shall have access, on
demand and for the purposes of determining compli-
ance with this section, to any records of such organi-
zations.
(e) LIMITATIONS ON LIABILITY.—
(1) LIABILITY OF FUND.—The liability of the
Fund and the United States Government arising out
of the provision of assistance to any organization in
accordance with this section shall be limited to the
amount of such assistance. The Fund shall be ex-
empt from any assessments and any other liability
that may be imposed on controlling or principal
shareholders by any Federal law or the law of any
State.
(2) LIABILITY OF GOVERNMENT.—
(A) 
NO
OBLIGATION
TO
PROVIDE
FUNDS.—This section shall not be construed as
obliging the Federal Government, either directly
or indirectly, to provide any funds to any orga-
nization assisted pursuant to this section, or to
honor, reimburse, or otherwise guarantee any
obligation or liability of such an organization.
118
(B) NO FULL FAITH AND CREDIT.—This
section shall not be construed to imply that any
such organization or any obligation or security
of any such organization is backed by the full
faith and credit of the United States.
(f) USE OF PROCEEDS.—Any proceeds from the sale
of loans to an organization assisted under this section
shall be used by the seller for community development pur-
poses.
SEC. 210. ENCOURAGEMENT OF PRIVATE ENTITIES.
The Board may cause to be incorporated, or encour-
age the incorporation of, private nonprofit and for-profit
entities that will complement the activities of the Fund
in carrying out the purposes of this title. The purposes
of any such entities shall be limited to investing in and
assisting community development financial institutions in
a manner similar to the activities of the Fund under this
title. Any such entities shall be managed exclusively by
private individuals who are selected in accordance with the
laws of the jurisdiction of incorporation.
SEC. 211. CLEARINGHOUSE FUNCTION.
The Fund shall establish and maintain an informa-
tion clearinghouse in coordination with the Departments
of Agriculture, Commerce, and Housing and Urban Devel-
opment, the Small Business Administration, other Federal
119
agencies, and community development financial institu-
tions—
(1) to cause to be collected, compiled, and ana-
lyzed information pertinent to community develop-
ment financial institutions that will assist in creat-
ing, developing, expanding, and preserving these in-
stitutions; and
(2) to cause to be established a service center
for comprehensive information on financial, tech-
nical, and management assistance, case studies of
the activities of community development financial in-
stitutions, regulations, and other information that
may promote the purposes of this title.
SEC. 212. TRAINING ASSISTANCE FOR ORGANIZING AND OP-
ERATING COMMUNITY DEVELOPMENT FINAN-
CIAL INSTITUTIONS.
(a) ASSISTANCE TO ESTABLISH AND OPERATE COM-
MUNITY DEVELOPMENT FINANCIAL INSTITUTIONS.—The
Fund shall carry out a program under this subsection to
provide training assistance in establishing and operating
community development financial institutions, which shall
include the following activities:
(1) Educating organizations, financial institu-
tions, and other entities and persons in low-income
neighborhoods and elsewhere regarding the need for,
121
(C) implementing effective asset manage-
ment and fund development techniques.
(6) Collecting and disseminating information
from various qualified community development fi-
nancial institutions regarding successful manage-
ment and operation techniques, lending practices,
and lending activities.
(b) PROVISION OF ASSISTANCE.—The Fund may pro-
vide training assistance under this section directly or
through public or private organizations pursuant to con-
tracts with such organizations.
(c) ADMINISTRATION.—The Fund may require—
(1) that training assistance provided under this
section to qualified community development lenders
and other applicants that receive assistance under
section 208 be made available pursuant to a request
for such assistance in an application under section
205;
(2) the selection of the application for the
award of assistance; and
(3) the inclusion of terms in the agreement or
contract for assistance under section 208(f)(3).
SEC. 213. RECORDKEEPING, REPORTS, AND AUDITS.
(a) RECORDKEEPING.—
122
(1) MAINTENANCE BY INSTITUTION.—A quali-
fied community development financial institution re-
ceiving assistance from the Fund shall keep such
records as may be reasonably necessary to disclose
the disposition of any assistance under this title and
to ensure compliance with the requirements of this
title.
(2) FUND
ACCESS
TO
RECORDS.—The Fund
shall have access, for the purpose of determining
compliance with this title, to any books, documents,
papers, and records of a qualified community devel-
opment financial institution receiving assistance
from the Fund that are pertinent to assistance re-
ceived under this title.
(b) REPORTS.—
(1) ANNUAL REPORT.—The Fund shall conduct
an annual evaluation of the activities carried out
pursuant to this title and shall submit a report on
the Fund’s findings to the President within 120
days of the end of each fiscal year of the Fund. The
report shall include financial statements audited in
accordance with subsection (c).
(2) INSTITUTIONAL VOICE FOR COMMUNITY DE-
VELOPMENT.—
123
(A) ONGOING
STUDY.—The Fund shall
conduct, or cause to be conducted, an ongoing
study to identify and evaluate the most effective
and financially sound policies and practices for
encouraging investment in distressed commu-
nities, including small business and commercial
lending, business formation and expansion,
community and economic development, commer-
cial real estate and multi-family housing, and
home mortgages.
(B) ADDITIONAL FACTORS.—In addition to
the factors described in subparagraph (A), the
Fund may study, or cause to be studied, (in
connection with the study conducted pursuant
to such subparagraph) related matters, such as
identification of sources of and access to capital
and loans for community investment, develop-
ment of secondary markets for economic and
community development, small business and
commercial loans, and home mortgage loans
and investments, and methods to involve all
segments of the financial services industry in
community development.
(C) STUDY OF BANKING PRACTICES ON IN-
DIAN RESERVATIONS.—In addition to the study
124
required under subparagraph (A), the Fund
shall conduct a separate and thorough study of
banking practices on Indian reservations that
specifically addresses the unique lending issues
with respect to Indian reservations such as
lending with respect to trust lands, Indian
headrights, or other trust property, availability
of collateral, and related issues.
(D) CONSULTATION.—In the conduct of
the studies required under subparagraphs (A)
and (C), the Fund shall consult, or cause con-
sultation with, the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, the
Board of Governors of the Federal Reserve Sys-
tem, the Federal Housing Finance Board, the
Farm Credit Administration, the Director of
the Office of Thrift Supervision, the National
Credit Union Administration, Indian tribal gov-
ernments, community reinvestment, civil rights,
consumer and financial organizations, and such
representatives of agencies or other persons as
the Fund may determine.
(E) REPORTS.—
(i) PRELIMINARY
REPORT.—Within
270 days after the date of the enactment
125
of this title, the Fund shall submit a re-
port to the President containing the
Fund’s initial findings and recommenda-
tions regarding the matters set forth in
subparagraphs (A) and (C).
(ii) 
SUBSEQUENT
REPORTS.—The
Fund shall submit an annual report to the
President containing the Fund’s findings
and recommendations regarding the mat-
ters set forth in subparagraph (A) with the
annual report required by subsection
(b)(1).
(3) INVESTMENT, GOVERNANCE, AND ROLE OF
FUND.—
(A) STUDY REQUIRED.—Before the end of
the 6-year period beginning on the date of the
enactment of this title, the Fund, in accordance
with the procedures described in subparagraphs
(A) and (B) of paragraph (2), shall conduct a
study evaluating the structure, governance, and
performance of the Fund.
(B) REPORT.—A report on the study con-
ducted pursuant to subparagraph (A) shall be
submitted to the President.
126
(C) 
EVALUATION
AND
RECOMMENDA-
TIONS.—The report submitted pursuant to sub-
paragraph (B) shall include—
(i) an evaluation of the overall per-
formance of the Fund in meeting the pur-
poses of this title;
(ii) any recommendation of the Fund
for—
(I) restructuring the Board:
(II) altering procedures under
which the Fund is governed; or
(III) the future role of the Fund
in addressing community development;
and
(iii) an assessment of the ability of
the Fund to become a private, self-sustain-
ing entity capable of fulfilling the purposes
of this title.
(c) EXAMINATION AND AUDIT.—The financial state-
ments of the Fund shall be audited in accordance with
section 9105 of title 31, United States Code, except that
audits required by section 9105(a) of such title shall be
performed annually.
127
SEC. 214. INVESTMENT OF RECEIPTS AND PROCEEDS.
Any dividends on equity investments and proceeds
from the disposition of investments, deposits, or member-
ship shares that are received by the Fund as a result of
assistance provided pursuant to section 208 or 209 shall
be deposited and accredited, subject to amounts approved
in appropriation Acts, to an account of the Fund estab-
lished to carry out the authorized purposes of this title.
Upon request of the chief executive officer, the Secretary
of the Treasury shall invest amounts deposited in such ac-
count in public debt securities with maturities suitable to
the needs of the Fund, as determined by the chief execu-
tive officer, and bearing interest at rates determined by
the Secretary of the Treasury, taking into consideration
current market yields on outstanding marketable obliga-
tions of the United States of comparable maturities.
Amounts deposited into the account and interest earned
on such amounts pursuant to this section shall be available
to the Fund until expended.
SEC. 215. ENFORCEMENT PROVISIONS.
(a) REGULATIONS.—
(1) IN GENERAL.—The Board shall prescribe
such regulations as may be necessary to carry out
the requirements of this Act.
128
(2) REGULATIONS REQUIRED.—The regulations
prescribed under paragraph (1) shall include regula-
tions to—
(A) prevent conflicts of interest on the part
of directors, officers, and employees of qualified
community development financial institutions as
the Board determines to be appropriate; and
(B) establish such standards with respect
to loans by a qualified community development
institution to any director, officer, or employee
of such institution as the Board determines to
be appropriate, including loan amount limita-
tions.
(b) ADMINISTRATIVE ENFORCEMENT.—
(1) IN GENERAL.—The provisions of this Act,
and regulations prescribed under and agreements
entered into under this Act, shall be enforced under
section 8 of the Federal Deposit Insurance Act by—
(A) the appropriate Federal banking agen-
cy, in the case of an insured community devel-
opment financial institution; and
(B) the Board, in the case of a community
development financial institution which is not
an insured community development financial in-
stitution.
129
(2) APPLICABILITY OF SECTION 8 TO BOARD.—
For purposes of applying section 8 of the Federal
Deposit Insurance Act to the provisions of this Act
in accordance with paragraph (1)—
(A) a violation of this Act, or any regula-
tion prescribed under or any agreement entered
into under this Act, shall be treated as a viola-
tion of the Federal Deposit Insurance Act; and
(B) the Board shall be treated as an ap-
propriate Federal banking agency.
(c) CRIMINAL PROVISION.—Section 657 of title 18,
United States Code, is amended by inserting ‘‘or any
qualified community development financial institution re-
ceiving financial assistance under the Community Devel-
opment Banking and Financial Institutions Act of 1993,’’
after ‘‘small business investment company,’’.
SEC. 216. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to the Fund, to remain available until expended,
$60,000,000 for fiscal year 1994, $104,000,000 for fiscal
year 1995, $107,000,000 for fiscal year 1996, and
$111,000,000 for fiscal year 1997, or such greater sums
as may be appropriated, to carry out the purposes of the
title.
130
(b) AVAILABILITY FOR FUNDING BEA.—Not less
than 331⁄3 percent of the amounts appropriated to the
Fund for any fiscal year pursuant to the authorization in
subsection (a) shall be available for use in carrying out
sections 232 and 233 of the Bank Enterprise Act and the
amendments made by such sections to other provisions of
law.
(c) ADMINISTRATIVE EXPENSES.—The Fund may set
aside up to $10,000,000 each fiscal year to pay adminis-
trative costs and expenses.
(d) CAPITALIZATION ASSISTANCE.—Not more than 5
percent of the amounts authorized to be appropriated
under subsection (a) may be used as provided in section
209.
SEC. 217. CONFORMING AMENDMENT.
Section 8F(a)(2) of the Inspector General Act of
1978 (5 U.S.C. App. 8F(a)(2)) is amended by inserting
‘‘the Community Development Banking and Financial In-
stitutions Fund,’’ immediately following ‘‘the Commodity
Futures Trading Commission,’’.
SEC. 218. APPOINTMENT OF COMMUNITY ENTERPRISE AS-
SESSMENT CREDIT BOARD.
The President shall appoint the members of the Com-
munity Enterprise Assessment Credit Board described in
section 233(d)(2)(D) of the Bank Enterprise Act before
131
the end of the 90-day period beginning on the date of the
enactment of this Act.
SEC. 219. COMMUNITY DEVELOPMENT CREDIT UNION AS-
SISTANCE.
(a) AUTHORIZATION
OF ADDITIONAL APPROPRIA-
TIONS.—In addition to the amounts appropriated to the
Community Development Credit Union Revolving Loan
Fund pursuant to section 101(j) of the joint resolution
entitled ‘Joint Resolution making continuing appropria-
tions for the fiscal year 1980, and for other purposes’’
and approved October 12, 1979, there is authorized to be
appropriated to the National Credit Union Administration
Board for purposes of the Community Development Credit
Union Revolving Loan Fund—
(1) $3,000,000 for fiscal year 1994;
(2) $4,000,000 for fiscal year 1995;
(3) $4,000,000 for fiscal year 1996; and
(4) $4,000,000 for fiscal year 1997.
(b) INVESTMENT OF FUNDS.—The National Credit
Union Administration Board may invest any moneys in
the Community Development Credit Union Revolving
Loan Fund which are not needed for current expenditures
in United States Treasury securities. Any interest accrued
on such securities shall, subject to amounts approved in