may, by regulation or order, exempt a national banking
association from the 25-member limit established by this
section’’.
SEC. 202. LOANS ON OR PURCHASES BY INSTITUTIONS OF
THEIR OWN STOCK.
(a) AMENDMENT TO REVISED STATUTES.—Section
5201 of the Revised Statutes of the United States (12
U.S.C. 83) is amended to read as follows:
‘‘SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.
‘‘(a) GENERAL PROHIBITION.—No national banking
association shall make any loan or discount on the security
of the shares of its own capital stock.
‘‘(b) EXCLUSION.—For purposes of this section, an
association shall not be deemed to be making a loan or
discount on the security of the shares of its own capital
stock if it acquires the stock to prevent loss upon a debt
contracted for in good faith.’’.
(b) AMENDMENT TO FEDERAL DEPOSIT INSURANCE
ACT.—Section 18 of the Federal Deposit Insurance Act
(12 U.S.C. 1828) is amended by adding at the end the
following new subsection:
‘‘(t) LOANS BY INSURED INSTITUTIONS ON THEIR
OWN STOCK.—
‘‘(1) GENERAL PROHIBITION.—No insured de-
pository institution shall make any loan or discount
on the security of the shares of its own capital stock.
‘‘(2) EXCLUSION.—For purposes of this sub-
section, an insured depository institution shall not be
deemed to be making a loan or discount on the secu-
rity of the shares of its own capital stock if it ac-
quires the stock to prevent loss upon a debt con-
tracted for in good faith.’’.
SEC. 203. EXPEDITED PROCEDURES FOR CERTAIN REORGA-
NIZATIONS.
The National Bank Consolidation and Merger Act
(12 U.S.C. 215 et seq.) is amended—
(1) by redesignating section 5 as section 7; and
(2) by inserting after section 4 the following
new section:
‘‘SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGA-
NIZATIONS.
‘‘(a) IN GENERAL.—A national bank may, with the
approval of the Comptroller, pursuant to regulations pre-
scribed by the Comptroller, and upon the affirmative vote
of the shareholders of such bank owning at least two-
thirds of the outstanding capital stock of such bank, reor-
ganize so as to become a subsidiary of a bank holding com-
pany or a company that will, upon consummation of such
reorganization, become a bank holding company.
‘‘(b) REORGANIZATION PLAN.—A reorganization au-
thorized under subsection (a) shall be carried out in ac-
cordance with a reorganization plan that—
‘‘(1) specifies the manner in which the reorga-
nization shall be carried out;
‘‘(2) is approved by a majority of the entire
board of directors of the bank;
‘‘(3) specifies—
‘‘(A) the amount of cash or securities of
the bank holding company, or both, or other
consideration, to be paid to the shareholders of
the reorganizing bank in exchange for their
shares of stock of the bank;
‘‘(B) the date as of which the rights of
each shareholder to participate in such ex-
change will be determined; and
‘‘(C) the manner in which the exchange
will be carried out; and
‘‘(4) is submitted to the shareholders of the re-
organizing bank at a meeting to be held on the call
of the directors in accordance with the procedures
prescribed in connection with a merger of a national
bank under section 3.
‘‘(c) APPLICABILITY OF OTHER CRITERIA.—In con-
sidering a reorganization plan under this section, the
Comptroller shall—
‘‘(1) require the national bank to provide notice
to the public in accordance with section 18(c)(3) of
the Federal Deposit Insurance Act; and
‘‘(2) apply the same standards and the same
criteria as are applicable to a transaction under sec-
tion 18(c) of the Federal Deposit Insurance Act,
other than the requirements of paragraphs (4) and
(6) of such section.
‘‘(d) RIGHTS OF DISSENTING SHAREHOLDERS.—If,
pursuant to this section, a reorganization plan has been
approved by the shareholders and the Comptroller, any
shareholder of the national bank who has voted against
the reorganization at the meeting referred to in subsection
(b)(4), or has given notice in writing at or before that
meeting to the presiding officer that the shareholder dis-
sents from the reorganization plan, shall be entitled to re-
ceive the value of the shares of the shareholder, as pro-
vided by section 3 for the merger of a national bank.
‘‘(e) EFFECT OF REORGANIZATION.—The corporate
existence of a national bank that reorganizes in accord-
ance with this section shall not be deemed to have been
affected in any way by reason of such reorganization.
‘‘(f) APPROVAL UNDER THE BANK HOLDING COM-
PANY ACT OF 1956.—Notwithstanding the preceding pro-
visions of this section, it shall be unlawful for any action
to be taken that causes any company to become a bank
holding company or any bank to become a subsidiary of
a bank holding company, except with the prior approval
of the Board of Governors of the Federal Reserve System
pursuant to section 3 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1842).’’.
Subtitle B—Savings Associations
SEC. 211. NONCONTROLLING INVESTMENTS BY SAVINGS
ASSOCIATION HOLDING COMPANIES.
Section 10(e)(1)(A)(iii) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(e)(1)(A)(iii) is amended—
(1) by inserting ‘‘, except with the prior written
approval of the Director,’’ after ‘‘or to retain’’;
(2) by striking ‘‘subsidiary, or in’’ and inserting
‘‘subsidiary. In’’; and
(3) by striking ‘‘to so acquire or retain’’ and in-
serting ‘‘it shall be unlawful, and the Director may
not authorize such a company, to acquire or retain’’.
SEC. 212. STREAMLINING SAVINGS ASSOCIATION SERVICE
COMPANY INVESTMENT REQUIREMENTS.
Section 5(c)(4)(B) of the Home Owners’ Loan Act
(12 U.S.C. 1464(c)(4)(B)) is amended—
(1) in the subparagraph heading, by striking
‘‘CORPORATIONS’’ and inserting ‘‘COMPANIES’’; and
(2) in the first sentence, by striking ‘‘corpora-
tion organized’’ and all that follows through ‘‘such
State.’’ and inserting ‘‘company organized under the
laws of any State, if such company’s entire capital
stock is available for purchase only by savings asso-
ciations. For purposes of this subparagraph, the
term ‘company’ includes any corporation and any
limited liability company (as defined in section
1(b)(7) of the Bank Service Company Act).’’.
SEC. 213. REPEAL OF DIVIDEND NOTICE REQUIREMENT.
Section 10(f) of the Home Owners’ Loan Act (12
U.S.C. 1467a(f)) is amended to read as follows:
‘‘(f) [Repealed].’’.
SEC. 214. UPDATING OF AUTHORITY FOR COMMUNITY DE-
VELOPMENT INVESTMENTS.
Section 5(c) of the Home Owners’ Loan Act (12
U.S.C. 1464(c)) is amended—
(1) in paragraph (3), by striking subparagraph
(A) and redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively; and
(2) by adding at the end the following new
paragraph:
‘‘(7) 
COMMUNITY
DEVELOPMENT
INVEST-
MENTS.—
‘‘(A) IN
GENERAL.—Investments in real
property and obligations secured by liens on
real property for the primary purpose of pro-
moting the public welfare, including the welfare
of low- and moderate-income communities or
families (including the provision of housing,
services, or jobs), are permitted, subject to sub-
paragraph (B).
‘‘(B) 
LIMITATIONS.—The 
aggregate
amount of investments of a savings association
under subparagraph (A) shall not exceed the
sum of 5 percent of the savings association’s
capital stock actually paid in and unimpaired
and 5 percent of the savings association’s
unimpaired surplus fund, unless the Director
determines by order that a higher amount will
pose no significant risk to the affected deposit
insurance fund, and that the savings association
is adequately capitalized, in which case the ag-
gregate amount of such investments shall not
exceed an amount equal to the sum of 10 per-
cent of the savings association’s capital stock
actually paid in and unimpaired and 10 percent
of the savings association’s unimpaired surplus
fund.’’.
Subtitle C—Other Institutions
SEC. 221. PROHIBITION ON ACCRUAL TO INSIDERS OF ECO-
NOMIC BENEFITS FROM CREDIT UNION CON-
VERSIONS.
Section 18 of the Federal Deposit Insurance Act (12
U.S.C. 1828) is amended by adding at the end the follow-
ing new subsection:
‘‘(t) PROHIBITION ON ECONOMIC BENEFIT FROM
CONVERSION FOR CREDIT UNION OFFICERS, DIRECTORS,
AND COMMITTEE MEMBERS.—
‘‘(1) IN GENERAL.—An individual who is or, at
any time during the 5-year period preceding any
conversion described in paragraph (2), was a direc-
tor, committee member, or senior management offi-
cial of an insured credit union described in subpara-
graph (A) or (B) of such paragraph (in connection
with such conversion) may not receive any economic
benefit as a result of the conversion with regard to
the shares or interests of such director, member, or
officer in the former insured credit union or in any
resulting insured depository institution.
‘‘(2) COVERED
CONVERSIONS.—The following
conversions are described in this paragraph for pur-
poses of paragraph (1):
‘‘(A) The conversion of an insured credit
union into an insured depository institution.
‘‘(B) The conversion from the mutual form
to the stock form of an insured depository insti-
tution which resulted from a prior conversion of
an insured credit union into such insured de-
pository institution.
‘‘(3) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) INSURED CREDIT UNION.—The term
‘insured credit union’ has the meaning given to
such term in section 101(7) of the Federal
Credit Union Act.
‘‘(B) SENIOR
MANAGEMENT
OFFICIAL.—
The term ‘senior management official’ means a
chief executive officer, an assistant chief execu-
tive officer, a chief financial officer, and any
other senior executive officer (as defined by the
appropriate Federal banking agency pursuant
to section 32(f)).’’.
TITLE III—STREAMLINING FED-
ERAL BANKING AGENCY RE-
QUIREMENTS 
AND 
ELIMI-
NATION OF UNNECESSARY OR
OUTDATED REQUIREMENTS
SEC. 301. ‘‘PLAIN ENGLISH’’ REQUIREMENT FOR FEDERAL
BANKING AGENCY RULES.
(a) IN GENERAL.—Each Federal banking agency
shall use plain English in all proposed and final
rulemakings published by the agency in the Federal Reg-
ister after January 1, 1999.
(b) REPORT.—Not later than June 1, 2000, each
Federal banking agency shall submit to the Congress a
report that describes how the agency has complied with
subsection (a).
(c) DEFINITIONS.—For purposes of this section and
section 302, the terms ‘‘Federal banking agency’’ and
‘‘State bank supervisor’’ have the meanings given such
terms in section 3 of the Federal Deposit Insurance Act.
SEC. 302. 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 and parent-only financial state-
ments, and to improve the timeliness of such reports and
statements, the Federal banking agencies (after consulting
with State bank supervisors) 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 July 1, 2000, report to the
Congress and make 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 (after con-
sulting with State bank supervisors) shall, consistent with
the principles of safety and soundness, work jointly—
(1) to adopt a single form for the filing of core
information required to be submitted under Federal
law to all such agencies in the reports and state-
ments referred to in subsection (a); and
(2) to simplify instructions accompanying such
reports and statements and to 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 (after consulting with State bank
supervisors) 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. 303. PURCHASED MORTGAGE SERVICE RIGHTS.
Section 475 of the Federal Depository Insurance Cor-
poration Improvement Act of 1991 (12 U.S.C. 1828 note)
is amended—
(1) in subsection (a)(1), by inserting ‘‘(or such
other percentage exceeding 90 percent but not ex-
ceeding 100 percent, as may be determined under
subsection (b))’’ after ‘‘90 percent’’; and
(2) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively, and by insert-
ing after subsection (a) the following new subsection:
‘‘(b) AUTHORITY TO DETERMINE PERCENTAGE BY
WHICH TO DISCOUNT VALUE OF SERVICING RIGHTS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(a)(1), the appropriate Federal banking agencies
may allow readily marketable purchased mortgage
servicing rights to be valued at more than 90 per-
cent of their fair market value but at not more than
100 percent of such value, if such agencies jointly
make a finding before the end of the 180-day period
beginning on the date of the enactment of the De-
pository Institution Regulatory Streamlining Act of
1998 that such valuation would not have an adverse
affect on the deposit insurance funds or the safety
and soundness of insured depository institutions.
‘‘(2) JOINT
RULEMAKING.—Any regulations
prescribed pursuant to paragraph (1) shall be pre-
scribed jointly by the Federal banking agencies.’’.
SEC. 304. JUDICIAL REVIEW OF RECEIVERSHIP APPOINT-
MENTS.
(a) APPOINTMENT FOR NATIONAL BANK.—Section 2
of the National Bank Receivership Act (12 U.S.C. 191)
is amended—
(1) by inserting ‘‘(a) APPOINTMENT
OF RE-
CEIVER.—’’ before ‘‘The Comptroller’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) JUDICIAL REVIEW.—Within 30 days after the
appointment under subsection (a) of a receiver for a na-
tional bank, the national bank may bring an action in the
United States district court for the judicial district in
which the home office of the bank is located, or in the
United States District Court for the District of Columbia,
for an order requiring the Comptroller to remove the re-
ceiver, and the court shall, on the merits, dismiss the ac-
tion or direct the Comptroller to remove the receiver.’’.
(b) APPOINTMENT
OF FEDERAL DEPOSIT INSUR-
ANCE CORPORATION.—Section 11(c)(7) of the Federal
Deposit Insurance Act (12 U.S.C. 1811(c)(7)) is amended
to read as follows:
‘‘(7) JUDICIAL REVIEW.—Within 30 days after
the Corporation is appointed as conservator or re-
ceiver for an insured depository institution under
paragraph (4), (9), or (10), the institution may
bring an action in the United States district court
for the judicial district in which the home office of
the institution is located, or in the United States
District Court for the District of Columbia, for an
order requiring the Corporation to be removed as
the conservator or receiver, and the court shall, on
the merits, dismiss the action or direct the Corpora-
tion to be removed as the conservator or receiver.’’.
SEC. 305. ELIMINATION OF OUTDATED STATUTORY MINI-
MUM CAPITAL REQUIREMENTS.
Section 5138 of the Revised Statutes of the United
States (12 U.S.C. 51) is repealed.
SEC. 306. ELIMINATION OF INDIVIDUAL BRANCH CAPITAL
REQUIREMENTS.
Section 5155(c) of the Revised Statutes of the United
States (12 U.S.C. 36(c)) is amended—
(1) in the second sentence, by striking ‘‘, with-
out regard to the capital requirements of this sec-
tion,’’; and
(2) by striking the third sentence.
SEC. 307. AMENDMENT TO SHAREHOLDER NOTICE PROVI-
SIONS RELATING TO CONSOLIDATIONS AND
MERGERS.
(a) Section 2(a) of the Act of August 17, 1950, enti-
tled ‘‘An Act to provide for the conversion of national
banking associations into and their merger or consolida-
tion with State banks, and for other purposes.’’ (12 U.S.C.
214a(a)) is amended by striking ‘‘registered mail or by
certified’’.
(b) Sections 2(a) and 3(a)(2) of the National Bank
Consolidation and Merger Act (12 U.S.C. 215(a) and
215a(a)(2)) are each amended by striking ‘‘certified or
registered’’ each place it appears.
SEC. 308. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH
SURPLUS FUNDS.
Section 11(d)(10) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(d)(10)) is amended by adding at the
end the following new subparagraph:
‘‘(C) RULEMAKING
AUTHORITY
OF
COR-
PORATION.—The Corporation may prescribe
such rules, including definitions of terms, as it
deems appropriate to establish the interest rate
for or to make payments of postinsolvency in-
terest to creditors holding proven claims against
the receivership estates of insured Federal or
State depository institutions following satisfac-
tion by the receiver of the principal amount of
all creditor claims.’’.
SEC. 309. REPEAL OF DEPOSIT BROKER NOTIFICATION AND
RECORDKEEPING REQUIREMENT.
Section 29A of the Federal Deposit Insurance Act
(12 U.S.C. 1831f–1) is repealed.
SEC. 310. ALLOWANCES FOR CERTAIN EXTENSIONS OF
CREDIT TO EXECUTIVE OFFICERS.
Section 22(g) of the Federal Reserve Act (12 U.S.C.
375a) is amended—
(1) by redesignating paragraphs (6) through
(10) as paragraphs (8) through (12), respectively;
and
(2) by inserting after paragraph (5) the follow-
ing new paragraphs:
‘‘(6) A member bank may extend to any execu-
tive officer of the bank a home equity line of credit
which does not exceed $100,000 and is secured by
a first lien on the primary residence of the executive
officer, to the extent that the aggregate amount of
such lien and all other outstanding extensions of
credit secured by liens on such primary residence
does not exceed the appraised value of such resi-
dence.
‘‘(7) A member bank may extend credit to any
executive officer of the bank in an amount not to ex-
ceed the greater of—
‘‘(A) the amount which is the lesser of 2.5
percent of the aggregate amount of capital and
unimpaired surplus of the bank or $100,000; or
‘‘(B) $25,000,
if, at the time the credit is extended, the extension
of credit is secured by readily marketable assets that
have a fair market value of not less than twice the
amount of credit extended.’’.
SEC. 311. FEDERAL RESERVE ACT LENDING LIMITS.
Section 11(m) of the Federal Reserve Act (12 U.S.C.
248(m)) is amended to read as follows:
‘‘(m) [Repealed].’’.
SEC. 312. REPEAL OF BANK HOLDING COMPANY ACT PRO-
VISION LIMITING SAVINGS BANK LIFE INSUR-
ANCE.
Section 3(f) of the Bank Holding Company Act of
1956 (12 U.S.C. 1842(f)) is amended to read as follows:
‘‘(f) [Repealed].’’.
TITLE IV—DISCLOSURE
SIMPLIFICATION
SEC. 401. ALTERNATIVE DISCLOSURE FOR VARIABLE RATE,
OPEN-ENDED HOME SECURED CREDIT.
Section 127A(a)(2)(G) of the Truth in Lending Act
(15 U.S.C. 1637a) is amended by inserting ‘‘or, at the
option of the creditor, a statement that periodic payments
may substantially increase or decrease’’ before the semi-
colon.
SEC. 402. ALTERNATIVE COMPLIANCE METHODS FOR AD-
VERTISING CREDIT TERMS.
(a) DOWNPAYMENT AMOUNTS.—Section 144(d) of
the Truth in Lending Act (15 U.S.C. 1664(d)) is amend-
ed—
(1) by striking ‘‘or the number of installments
or the period of repayment, then’’; and
(2) by inserting ‘‘or’’ before ‘‘the dollar’’.
(b) ALTERNATIVE DISCLOSURES.—Chapter 3 of the
Truth in Lending Act (15 U.S.C. 1661 et seq.) is amended
by adding at the end the following new section:
‘‘SEC. 148. ALTERNATIVE DISCLOSURES.
‘‘(a) IN GENERAL.—A radio or television advertise-
ment to aid, promote, or assist, directly or indirectly, any
extension of consumer credit may satisfy the disclosure re-
quirements in sections 143, 144(d), 147(a), or 147(e), by
complying with all of the requirements in subsections (b)
and (c) of this section.
‘‘(b) INFORMATION TO BE DISCLOSED.—A radio or
television advertisement referred to in subsection (a) com-
plies with this subsection if it clearly and conspicuously
sets forth, in such form and manner as the Board may
require—
‘‘(1) the annual percentage rate of any finance
charge, and with respect to an open-end credit plan,
the simple interest rate or the periodic rate in addi-
tion to the annual percentage rate;
‘‘(2) whether the interest rate may vary;
‘‘(3) if the advertisement states an introductory
rate (or states with respect to a variable-rate plan
an initial rate that is not based on the index and
margin used to make later rate adjustments)—
‘‘(A) with equal prominence, the annual
percentage rate that will be in effect after the
introductory or initial rate period expires (or
for a variable-rate plan, a reasonably current
annual percentage rate that would have been in
effect using the index and margin); and
‘‘(B) the period during which the introduc-
tory or initial rate will remain in effect;
‘‘(4) the amount of any annual fee for an open-
end credit plan;
‘‘(5) a telephone number established in accord-
ance with subsection (c) that may be used by con-
sumers to obtain all of the information otherwise re-
quired to be disclosed pursuant to sections 143 and
144(d), and subsections (a) and (e) of section 147;
and
‘‘(6) a statement that the consumer may use
the telephone number established in accordance with
subsection (c) to obtain further details about addi-
tional terms and costs associated with the offer of
credit.
‘‘(c) REQUIREMENTS FOR TELEPHONE NUMBERS.—
In the case of an advertisement described in subsection
(b) that refers to a telephone number—
‘‘(1) the creditor shall establish the telephone
number for a broadcast area not later than the date
on which the advertisement is first broadcast in that
area;
‘‘(2) the required information shall be available
by telephone for a broadcast area for a period of not
less than 10 days following the date of the final
broadcast of the advertisement in that area;
‘‘(3) the creditor shall provide all of the infor-
mation that is otherwise required pursuant to sec-
tions 143 and 144(d), and subsections (a) and (e)
of section 147 orally by telephone or, if requested by
the consumer, in written form; and
‘‘(4) the consumer shall obtain the required in-
formation by telephone without incurring any long-
distance charges.’’.
TITLE V—BANK EXAMINATION
REPORT PRIVILEGE ACT
SEC. 501. AMENDMENT TO THE FEDERAL DEPOSIT INSUR-
ANCE ACT.
The Federal Deposit Insurance Act (12 U.S.C. 1811
et seq.) is amended by adding at the end the following
new section:
‘‘SEC. 45. BANK SUPERVISORY PRIVILEGE.
‘‘(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’ includes—
‘‘(A) any institution which is treated in the
same manner as an insured depository institu-
tion under paragraph (3), (4), (5), or (9) of
section 8(b); and
‘‘(B) any subsidiary or other affiliate of an
insured depository institution or an institution
described in subparagraph (A).
‘‘(2) SUPERVISORY
PROCESS.—The term ‘su-
pervisory process’ means any activity engaged in by
a Federal banking agency to carry out the official
responsibilities of the agency with regard to the reg-
ulation or supervision of depository institutions.
‘‘(3) CONFIDENTIAL
SUPERVISORY
INFORMA-
TION.—The term ‘confidential supervisory informa-
tion’ means any of the following information, or any
portion of any such information, which is treated as,
or considered to be, confidential information by a
Federal banking agency, regardless of the medium
in which the information is conveyed or stored:
‘‘(A) Any report of examination, inspec-
tion, visitation, or investigation, and informa-
tion prepared or collected by a Federal banking
agency in connection with the supervisory proc-
ess, including any computer file, work paper, or
similar document.
‘‘(B) Any correspondence of communica-
tion from a Federal banking agency to a deposi-
tory institution arising from or relating to an
examination, inspection, visitation, or investiga-
tion by a Federal banking agency.
‘‘(C) Any correspondence, communication,
or document, including any compliance and
other reports, created by a depository institu-
tion in response to any request, inquiry, or di-
rective from a Federal banking agency in con-
nection with any examination, inspection, visita-
tion, or investigation and provided to a Federal
banking agency, other than any book or record
in the possession of the depository institution
routinely prepared by the depository institution
and maintained in the ordinary course of busi-
ness or any information required to be made
publicly available by any Federal law or regula-
tion.
‘‘(D) Any record of a Federal banking
agency to the extent it contains information de-
rived from any report, correspondence, commu-
nication or other information described in sub-
paragraph (A), (B), or (C).
‘‘(b) BANK SUPERVISORY PRIVILEGE.—
‘‘(1) PRIVILEGE ESTABLISHED.—
‘‘(A) IN GENERAL.—All confidential super-
visory information shall be the property of the
Federal banking agency that created or re-
quested the information and shall be privileged
from disclosure to any other person.
‘‘(B) PROHIBITION
ON
UNAUTHORIZED
DISCLOSURES.—No person in possession of con-
fidential supervisory information may disclose
such information, in whole or in part, without
the prior authorization of the Federal banking
agency that created or requested the informa-
tion, except for a disclosure made in published
statistical material that does not disclose, either
directly or when used in conjunction with pub-
licly available information, the affairs of any
person.
‘‘(C) 
AGENCY
WAIVER.—The 
Federal
banking agency may waive, in whole or in part,
in the discretion of the agency, any privilege es-
tablished under this paragraph.
‘‘(2) EXCEPTION.—No provision of paragraph
(1) shall be construed as preventing access to con-
fidential supervisory information by duly authorized
committees of the United States Congress or the
Comptroller General of the United States.
‘‘(c) TREATMENT OF STATE AND FOREIGN SUPER-
VISORY INFORMATION.—In any proceeding before a court
of the United States, in which a person seeks to compel
production or disclosure by a State bank supervisor, for-
eign bank regulatory or supervisory authority, Federal
banking agency, or other person, of information or a docu-
ment prepared or collected by a State bank supervisor or
foreign bank regulatory or supervisory authority that
would, had they been prepared or collected by a Federal
banking agency, be confidential supervisory information
for purposes of this section, the information or document
shall be privileged to the same extent that the information
and documents of Federal banking agencies are privileged
under this Act.
‘‘(d) OTHER PRIVILEGES NOT WAIVED BY DISCLO-
SURE TO BANKING AGENCY.—The submission by a depos-
itory institution of any information to a Federal banking
agency, a State bank supervisor, or a foreign banking au-
thority for any purpose in the course of the supervisory
process of such agency or supervisor shall not be construed
as waiving, destroying, or otherwise affecting any privilege
such institution may claim with respect to such informa-
tion under Federal or State law.
‘‘(e) DISCOVERY
AND DISCLOSURE
OF INFORMA-
TION.—
‘‘(1) INFORMATION
AVAILABLE
ONLY
FROM
BANKING AGENCY.—
‘‘(A) IN GENERAL.—A person seeking dis-
covery or disclosure, in whole or in part, of con-
fidential supervisory information may not seek
to obtain such information through subpoena,
discovery procedures, or other process from any
person, except that such information may be
sought in accordance with this section from the
Federal banking agency that created or re-
quested the information.
‘‘(B) REQUESTS SUBMITTED TO BANKING
AGENCY.—Any request for discovery or disclo-
sure of confidential supervisory information
shall be made to the Federal banking agency
that created or requested the information,
which shall determine within a reasonable time
period whether to disclose such information
pursuant to procedures and criteria established
in regulations.
‘‘(2) EXCLUSIVE
FEDERAL
COURT
JURISDIC-
TION OVER DISPUTES.—
‘‘(A) IN GENERAL.—Federal courts shall
have exclusive jurisdiction over actions or pro-
ceedings in which any party seeks to compel
disclosure of confidential supervisory informa-
tion.
‘‘(B) JUDICIAL REVIEW.—Judicial review
of the final action of a Federal banking agency
with regard to the disposition of a request for
confidential supervisory information shall be be-
fore a district court of the United States of
competent jurisdiction, subject to chapter 7 of
part I of title 5, United States Code.
‘‘(C) RIGHT TO APPEAL.—Any court order
that compels production of confidential super-
visory information may be immediately appealed
by the Federal banking agency and the order
compelling production shall be automatically
stayed, pending the outcome of such appeal.
‘‘(f) SUBPOENAS.—
‘‘(1) AUTHORITY TO INTERVENE.—In the case
of any action or proceeding to compel compliance
with a subpoena, order, discovery request, or other
judicial or administrative process with respect to any
confidential supervisory information relating to any
depository institution, a Federal banking agency and
the depository institution may intervene in such ac-
tion or proceeding for the purpose of—
‘‘(A) enforcing the limitations established
in paragraph (1) of subsections (b) and (e);
‘‘(B) seeking the withdrawal of any com-
pulsory process with respect to such informa-
tion; and
‘‘(C) registering appropriate objections
with respect to the action or proceeding to the
extent the action or proceeding relates to or in-
volves such information.
‘‘(2) RIGHT TO APPEAL.—Any court order that
compels production of confidential supervisory infor-
mation may be immediately appealed by the Federal
banking agency and the order compelling production
shall be automatically stayed, pending the outcome
of such appeal.
‘‘(g) REGULATIONS.—
‘‘(1) AUTHORITY TO PRESCRIBE.—Each Fed-
eral banking agency may prescribe such regulations
as the agency considers to be appropriate, after con-
sultation with the other Federal banking agencies
and the National Credit Union Administration
Board, to carry out the purposes of this section.
‘‘(2) AUTHORITY
TO
REQUIRE
NOTICE.—Any
regulations prescribed by a Federal banking agency
under paragraph (1) may require any person in pos-
session of confidential supervisory information to no-
tify the Federal banking agency whenever the person
is served with a subpoena, order, discovery request,
or other judicial or administrative process requiring
the personal attendance of such person as a witness
or requiring the production of such information in
any proceeding.
‘‘(h) ACCESS IN ACCORDANCE WITH REGULATIONS
AND ORDERS.—Notwithstanding any other provision of
this section, the Federal banking agency may, without
waiving any privilege, authorize access to confidential su-
pervisory information for any appropriate governmental,
law enforcement, or public purpose in accordance with
agency regulations or orders.’’.
SEC. 502. AMENDMENT TO THE FEDERAL CREDIT UNION
ACT.
Title II of the Federal Credit Union Act (12 U.S.C.
1781 et seq.) is amended by adding at the end the follow-
ing new section:
‘‘SEC. 215. CREDIT UNION SUPERVISORY PRIVILEGE.
‘‘(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) SUPERVISORY
PROCESS.—The term ‘su-
pervisory process’ means any activity engaged in by
the Administration to carry out the official respon-
sibilities of the Administration with regard to the
regulation or supervision of credit unions.
‘‘(2) CONFIDENTIAL
SUPERVISORY
INFORMA-
TION.—The term ‘confidential supervisory informa-
tion’ means any of the following information, or any
portion of any such information, which is treated as,
or considered to be, confidential information by the
Administration, regardless of the medium in which
the information is conveyed or stored:
‘‘(A) Any report of examination, inspec-
tion, visitation, or investigation, and informa-
tion prepared or collected by the Administration
in connection with the supervisory process, in-
cluding any computer file, work paper, or simi-
lar document.
‘‘(B) Any correspondence or communica-
tion from the Administration to a credit union
arising from or relating to an examination, in-
spection, visitation, or investigation by the Ad-
ministration.
‘‘(C) Any correspondence, communication,
or document, including any compliance and
other reports, created by a credit union in re-
sponse to any request, inquiry, or directive from
the Administration in connection with any ex-
amination, inspection, visitation, or investiga-
tion and provided to the Administration, other
than any book or record in the possession of the
credit union routinely prepared by the credit
union and maintained in the ordinary course of
business or any information required to be
made publicly available by any Federal law or
regulation.
‘‘(D) Any record of the Administration to
the extent it contains information derived from
any report, correspondence, communication or
other information described in subparagraph
(A), (B), or (C).
‘‘(b) CREDIT UNION SUPERVISORY PRIVILEGE.—
‘‘(1) PRIVILEGE ESTABLISHED.—
‘‘(A) IN GENERAL.—All confidential super-
visory information shall be the property of the
Administration and shall be privileged from dis-
closure to any other person.
‘‘(B) PROHIBITION
ON
UNAUTHORIZED
DISCLOSURES.—No person in possession of con-
fidential supervisory information may disclose
such information, in whole or in part, without
the prior authorization of the Administration,
except for a disclosure made in published statis-
tical material that does not disclose, either di-
rectly or when used in conjunction with publicly
available information, the affairs of any person.
‘‘(C) AGENCY WAIVERS.—The Board may
waive, in whole or in part, in the discretion of
the Board, any privilege established under this
paragraph.
‘‘(2) EXCEPTION.—No provision of paragraph
(1) shall be construed as preventing access to con-
fidential supervisory information by duly authorized
committees of the United States Congress or the
Comptroller General of the United States.
‘‘(c) OTHER PRIVILEGES NOT WAIVED BY DISCLO-
SURE TO ADMINISTRATION.—The submission by a credit
union of any information to the Administration or a State
credit union supervisor for any purpose in the course of
the supervisory process of the Administration or such su-
pervisor shall not be construed as waiving, destroying, or
otherwise affecting any privilege such institution may
claim with respect to such information under Federal or
State law.
‘‘(d) DISCOVERY
AND DISCLOSURE
OF INFORMA-
TION.—
‘‘(1) INFORMATION AVAILABLE ONLY FROM AD-
MINISTRATION.—
‘‘(A) IN GENERAL.—A person seeking dis-
covery or disclosure, in whole or in part, of con-
fidential supervisory information may not seek
to obtain such information through subpoena,
discovery procedures, or other process from any
person, except that such information may be
sought in accordance with this section from the
Administration.
‘‘(B) REQUEST SUBMITTED TO ADMINIS-
TRATION.—Any request for discovery or disclo-
sure of confidential supervisory information
shall be made in the Administration, which
shall determine within a reasonable time period
whether to disclose such information pursuant
to procedures and criteria established in regula-
tions.
‘‘(2) EXCLUSIVE
FEDERAL
COURT
JURISDIC-
TION OVER DISPUTES.—
union may intervene in such action or proceeding for
the purpose of—
‘‘(A) enforcing the limitations established
in paragraph (1) of subsections (b) and (d);
‘‘(B) seeking the withdrawal of any com-
pulsory process with respect to such informa-
tion; and
‘‘(C) registering appropriate objections
with respect to the action or proceeding to the
extent the action or proceeding relates to or in-
volves such information.
‘‘(2) RIGHT TO APPEAL.—Any court order that
compels production of confidential supervisory infor-
mation may be immediately appealed by the Admin-
istration and the order compelling production shall
be automatically stayed, pending the outcome of
such appeal.
‘‘(f) REGULATIONS.—
‘‘(1) AUTHORITY TO PRESCRIBE.—The Board
may prescribe such regulations as the Board consid-
ers to be appropriate, after consultation with the
Federal banking agencies (as defined in section 3 of
the Federal Deposit Insurance Act), to carry out the
purposes of this section.
‘‘(2) AUTHORITY
TO
REQUIRE
NOTICE.—Any
regulations prescribed by the Administration under
paragraph (1) may require any person in possession
of confidential supervisory information to notify the
Administration whenever the person is served with a
subpoena, order, discovery request, or other judicial
or administrative process requiring the personal at-
tendance of such person as a witness or requiring
the production of such information in any proceed-
ing.
‘‘(g) ACCESS IN ACCORDANCE WITH REGULATIONS
AND ORDERS.—Notwithstanding any other provision of
this section, the Administration may, without waiving any
privilege, authorize access to confidential supervisory in-
formation for any appropriate governmental, law enforce-
ment, or public purpose in accordance with agency regula-
tions or orders.’’.
TITLE VI—TECHNICAL
CORRECTIONS
SEC. 601. TECHNICAL CORRECTION RELATING TO DEPOSIT
INSURANCE FUNDS.
(a) IN GENERAL.—Section 2707 of the Deposit In-
surance Funds Act of 1996 (12 U.S.C. 1821 note; Public
Law 104–208; 110 Stat. 3009–496) is amended by strik-
ing ‘‘7(b)(2)(C)’’ and inserting ‘‘7(b)(2)(E)’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall be deemed to have the same effective
date as section 2707 of the Deposit Insurance Funds Act
of 1996.
SEC. 602. RULES FOR CONTINUATION OF DEPOSIT INSUR-
ANCE FOR MEMBER BANKS CONVERTING
CHARTERS.
Section 8(o) of the Federal Deposit Insurance Act
(12 U.S.C. 1818(o)) is amended in the second sentence,
by striking ‘‘subsection (d) of section 4’’ and inserting
‘‘subsection (c) or (d) of section 4’’.
SEC. 603. WAIVER OF CITIZENSHIP REQUIREMENT FOR NA-
TIONAL BANK DIRECTORS.
Section 5146 of the Revised Statutes of the United
States (12 U.S.C. 72) is amended in the 1st sentence, by
inserting before the period ‘‘, and waive the requirement
of citizenship in the case of not more than a minority of
the total number of directors of a national bank which
is an affiliate (as defined in section 3(w)(6) of the Federal
Deposit Insurance Act) of a foreign bank’’.
SEC. 604. TECHNICAL AMENDMENT TO PROHIBITION ON
COMPTROLLER 
INTERESTS 
IN 
NATIONAL
BANKS.
Section 329 of the Revised Statutes of the United
States (12 U.S.C. 11) is amended by striking ‘‘to be inter-
ested in any association issuing national currency under
the laws of the United States’’ and inserting ‘‘to hold an
interest in any national bank’’.
SEC. 605. APPLICABILITY OF LIMITATION TO PRIOR IN-
VESTMENTS.
(a) IN GENERAL.—Section 18(s) of the Federal De-
posit Insurance Act (12 U.S.C. 1828(s)) is amended by
adding at the end the following new paragraph:
‘‘(5) CERTAIN
INVESTMENTS.—Paragraph (1)
shall not apply to investments lawfully made before
April 11, 1996, by a depository institution in a Gov-
ernment-sponsored enterprise.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply as if such amendment had been
included in the amendment made by section 2615(b) of
the Economic Growth and Regulatory Paperwork Reduc-
tion Act of 1996 as of the effective date of such section.
Æ