108TH CONGRESS
2D SESSION
H. R. 1375
AN ACT
To provide regulatory relief and improve produc-
tivity for insured depository institutions, and for
other purposes.
108TH CONGRESS
2D SESSION
H. R. 1375
AN ACT
To provide regulatory relief and improve productivity for
insured depository 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,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Financial Services Regulatory Relief Act of 2004’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—NATIONAL BANK PROVISIONS
Sec. 101. National bank directors.
Sec. 102. Voting in shareholder elections.
Sec. 103. Simplifying dividend calculations for national banks.
Sec. 104. Repeal of obsolete limitation on removal authority of the Comptroller
of the Currency.
Sec. 105. Repeal of intrastate branch capital requirements.
Sec. 106. Clarification of waiver of publication requirements for bank merger
notices.
Sec. 107. Equal treatment for Federal agencies of foreign banks.
Sec. 108. Maintenance of a Federal branch and a Federal agency in the same
State.
Sec. 109. Business organization flexibility for national banks.
Sec. 110. Clarification of the main place of business of a national bank.
TITLE II—SAVINGS ASSOCIATION PROVISIONS
Sec. 201. Parity for savings associations under the Securities Exchange Act of
1934 and the Investment Advisers Act of 1940.
Sec. 202. Investments by Federal savings associations authorized to promote
the public welfare.
Sec. 203. Mergers and consolidations of Federal savings associations with non-
depository institution affiliates.
Sec. 204. Repeal of statutory dividend notice requirement for savings associa-
tion subsidiaries of savings and loan holding companies.
Sec. 205. Modernizing statutory authority for trust ownership of savings asso-
ciations.
Sec. 206. Repeal of overlapping rules governing purchased mortgage servicing
rights.
Sec. 207. Restatement of authority for Federal savings associations to invest in
small business investment companies.
Sec. 208. Removal of limitation on investments in auto loans.
Sec. 209. Selling and offering of deposit products.
Sec. 210. Funeral- and cemetery-related fiduciary services.
Sec. 211. Repeal of qualified thrift lender requirement with respect to out-of-
state branches.
Sec. 212. Small business and other commercial loans.
Sec. 213. Clarifying citizenship of Federal savings associations for Federal
court jurisdiction.
TITLE III—CREDIT UNION PROVISIONS
Sec. 301. Privately insured credit unions authorized to become members of a
Federal home loan bank.
Sec. 302. Leases of land on Federal facilities for credit unions.
Sec. 303. Investments in securities by Federal credit unions.
Sec. 304. Increase in general 12-year limitation of term of Federal credit union
loans to 15 years.
Sec. 305. Increase in 1 percent investment limit in credit union service organi-
zations.
Sec. 306. Member business loan exclusion for loans to nonprofit religious orga-
nizations.
Sec. 307. Check cashing and money transfer services offered within the field of
membership.
Sec. 308. Voluntary mergers involving multiple common-bond credit unions.
Sec. 309. Conversions involving common-bond credit unions.
Sec. 310. Credit union governance.
Sec. 311. Providing the National Credit Union Administration with greater
flexibility in responding to market conditions.
Sec. 312. Exemption from pre-merger notification requirement of the Clayton
Act.
Sec. 313. Treatment of credit unions as depository institutions under securities
laws.
TITLE IV—DEPOSITORY INSTITUTION PROVISIONS
Sec. 401. Easing restrictions on interstate branching and mergers.
Sec. 402. Statute of limitations for judicial review of appointment of a receiver
for depository institutions.
Sec. 403. Reporting requirements relating to insider lending.
Sec. 404. Amendment to provide an inflation adjustment for the small deposi-
tory institution exception under the Depository Institution
Management Interlocks Act.
Sec. 405. Enhancing the safety and soundness of insured depository institu-
tions.
Sec. 406. Investments by insured savings associations in bank service compa-
nies authorized.
Sec. 407. Cross guarantee authority.
Sec. 408. Golden parachute authority and nonbank holding companies.
Sec. 409. Amendments relating to change in bank control.
TITLE V—DEPOSITORY INSTITUTION AFFILIATES PROVISIONS
Sec. 501. Clarification of cross marketing provision.
Sec. 502. Amendment to provide the Federal Reserve Board with discretion
concerning the imputation of control of shares of a company
by trustees.
Sec. 503. Eliminating geographic limits on thrift service companies.
Sec. 504. Clarification of scope of applicable rate provision.
TITLE VI—BANKING AGENCY PROVISIONS
Sec. 601. Waiver of examination schedule in order to allocate examiner re-
sources.
Sec. 602. Interagency data sharing.
Sec. 603. Penalty for unauthorized participation by convicted individual.
‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIR-
CUMSTANCES.—A national bank may not declare and pay
dividends in any year in excess of an amount equal to the
sum of the total of the net income of the bank for that
year and the retained net income of the bank in the pre-
ceding two years, minus any transfers required by the
Comptroller of the Currency (including any transfers re-
quired to be made to a fund for the retirement of any
preferred stock), unless the Comptroller of the Currency
approves the declaration and payment of dividends in ex-
cess of such amount.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter three of title LXII of the Revised Statutes of
the United States is amended by striking the item relating
to section 5199 and inserting the following new item:
‘‘5199.
National bank dividends.’’.
SEC. 104. REPEAL OF OBSOLETE LIMITATION ON REMOVAL
AUTHORITY OF THE COMPTROLLER OF THE
CURRENCY.
Section 8(e)(4) of the Federal Deposit Insurance Act
(12 U.S.C. 1818(e)(4)) is amended by striking the 5th
sentence.
SEC. 105. REPEAL OF INTRASTATE BRANCH CAPITAL RE-
QUIREMENTS.
Section 5155(c) of the Revised Statutes of the United
States (12 U.S.C. 36(c)) is amended—
(1) in the 2nd sentence, by striking ‘‘, without
regard to the capital requirements of this section,’’;
and
(2) by striking the last sentence.
SEC. 106. CLARIFICATION OF WAIVER OF PUBLICATION RE-
QUIREMENTS FOR BANK MERGER NOTICES.
The last sentence of 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), respectively) are each amended by
striking ‘‘Publication of notice may be waived, in cases
where the Comptroller determines that an emergency ex-
ists justifying such waiver, by unanimous action of the
shareholders of the association or State bank’’ and insert-
ing ‘‘Publication of notice may be waived if the Comp-
troller determines that an emergency exists justifying such
waiver or if the shareholders of the association or State
bank agree by unanimous action to waive the publication
requirement for their respective institutions’’.
SEC. 107. EQUAL TREATMENT FOR FEDERAL AGENCIES OF
FOREIGN BANKS.
The 1st sentence of section 4(d) of the International
Banking Act of 1978 (12 U.S.C. 3102(d)) is amended by
inserting ‘‘from citizens or residents of the United States’’
after ‘‘deposits’’.
SEC. 108. MAINTENANCE OF A FEDERAL BRANCH AND A
FEDERAL AGENCY IN THE SAME STATE.
Section 4(e) of the International Banking Act of
1978 (12 U.S.C. 3102(e)) is amended by inserting ‘‘if the
maintenance of both an agency and a branch in the State
is prohibited under the law of such State’’ before the pe-
riod at the end.
SEC. 109. BUSINESS ORGANIZATION FLEXIBILITY FOR NA-
TIONAL BANKS.
(a) IN GENERAL.—Chapter one of title LXII of the
Revised Statutes of the United States (12 U.S.C. 21 et
seq.) is amended by inserting after section 5136B the fol-
lowing new section:
‘‘SEC. 5136C. ALTERNATIVE BUSINESS ORGANIZATION.
‘‘(a) IN GENERAL.—The Comptroller of the Currency
may prescribe regulations—
‘‘(1) to permit a national bank to be organized
other than as a body corporate; and
‘‘(2) to provide requirements for the organiza-
tional characteristics of a national bank organized
and operating other than as a body corporate, con-
sistent with the safety and soundness of the national
bank.
‘‘(b) EQUAL TREATMENT.—Except as provided in
regulations prescribed under subsection (a), a national
bank that is operating other than as a body corporate shall
have the same rights and privileges and shall be subject
to the same duties, restrictions, penalties, liabilities, condi-
tions, and limitations as a national bank that is organized
as a body corporate.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 5136 of the Revised Statutes of the United States
(12 U.S.C. 24) is amended, in the matter preceding the
paragraph designated as the ‘‘First’’, by inserting ‘‘or
other form of business organization provided under regula-
tions prescribed by the Comptroller of the Currency under
section 5136C’’ after ‘‘a body corporate’’.
(c) CLERICAL AMENDMENT.—The table of sections
for chapter one of title LXII of the Revised Statutes of
the United States (12 U.S.C. 21 et seq.) is amended by
inserting after the item relating to section 5136B the fol-
lowing new item:
‘‘5136C. Alternative business organization.’’.
SEC. 110. CLARIFICATION OF THE MAIN PLACE OF BUSI-
NESS OF A NATIONAL BANK.
Title LXII of the Revised Statutes of the United
States is amended—
(1) in the paragraph designated the ‘‘Second’’
of section 5134 (12 U.S.C. 22), by striking ‘‘The
place where its operations of discount and deposit
are to be carried on’’ and inserting ‘‘The place
where the main office of the national bank is, or is
to be, located’’; and
(2) in section 5190 (12 U.S.C. 81), by striking
‘‘the place specified in its organization certificate’’
and inserting ‘‘the main office of the national bank’’.
TITLE II—SAVINGS ASSOCIATION
PROVISIONS
SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE
SECURITIES EXCHANGE ACT OF 1934 AND
THE INVESTMENT ADVISERS ACT OF 1940.
(a) SECURITIES EXCHANGE ACT OF 1934.—
(1) DEFINITION OF BANK.—Section 3(a)(6) of
the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(6)) is amended—
(A) in subparagraph (A), by inserting ‘‘or
a Federal savings association, as defined in sec-
tion 2(5) of the Home Owners’ Loan Act’’ after
‘‘a banking institution organized under the laws
of the United States’’; and
(B) in subparagraph (C)—
(i) by inserting ‘‘or savings associa-
tion as defined in section 2(4) of the Home
Owners’ Loan Act,’’ after ‘‘banking insti-
tution,’’; and
(ii) by inserting ‘‘or savings associa-
tions’’ after ‘‘having supervision over
banks’’.
(2) INCLUDE OTS UNDER THE DEFINITION OF
APPROPRIATE REGULATORY AGENCY FOR CERTAIN
PURPOSES.—Section 3(a)(34) of such Act (15
U.S.C. 78c(a)(34)) is amended—
(A) in subparagraph (A)—
(i) in clause (ii), by striking ‘‘(i) or
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’;
(ii) by striking ‘‘and’’ at the end of
clause (iii);
(iii) by redesignating clause (iv) as
clause (v); and
(iv) by inserting the following new
clause after clause (iii):
‘‘(iv) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance
Corporation, a subsidiary or a department
or division of any such savings association,
or a savings and loan holding company;
and’’;
(B) in subparagraph (B)—
(i) in clause (ii), by striking ‘‘(i) or
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’;
(ii) by striking ‘‘and’’ at the end of
clause (iii);
(iii) by redesignating clause (iv) as
clause (v); and
(iv) by inserting the following new
clause after clause (iii):
‘‘(iv) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance
Corporation, or a subsidiary of any such
savings association, or a savings and loan
holding company; and’’;
(C) in subparagraph (C)—
(i) in clause (ii), by striking ‘‘(i) or
(iii)’’ and inserting ‘‘(i), (iii), or (iv)’’;
(ii) by striking ‘‘and’’ at the end of
clause (iii);
(iii) by redesignating clause (iv) as
clause (v); and
(iv) by inserting the following new
clause after clause (iii):
‘‘(iv) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance
Corporation, a savings and loan holding
company, or a subsidiary of a savings and
loan holding company when the appro-
priate regulatory agency for such clearing
agency is not the Commission; and’’;
(D) in subparagraph (D)—
(i) by striking ‘‘and’’ at the end of
clause (ii);
(ii) by redesignating clause (iii) as
clause (iv); and
(iii) by inserting the following new
clause after clause (ii):
‘‘(iii) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance
Corporation; and’’;
(E) in subparagraph (F)—
(i) by redesignating clauses (ii), (iii),
and (iv) as clauses (iii), (iv), and (v), re-
spectively; and
(ii) by inserting the following new
clause after clause (i):
‘‘(ii) the Director of the Office of
Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(b))) the deposits of which are
insured by the Federal Deposit Insurance
Corporation; and’’;
(F) by moving subparagraph (H) and in-
serting such subparagraph after subparagraph
(G); and
(G) by adding at the end the following new
sentence: ‘‘As used in this paragraph, the term
‘savings and loan holding company’ has the
meaning given it in section 10(a) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(a)).’’.
(b) INVESTMENT ADVISERS ACT OF 1940.—
(1) DEFINITION OF BANK.—Section 202(a)(2)
of the Investment Advisers Act of 1940 (15 U.S.C.
80b–2(a)(2)) is amended—
(A) in subparagraph (A) by inserting ‘‘or
a Federal savings association, as defined in sec-
tion 2(5) of the Home Owners’ Loan Act’’ after
‘‘a banking institution organized under the laws
of the United States’’; and
(B) in subparagraph (C)—
(i) by inserting ‘‘, savings association
as defined in section 2(4) of the Home
Owners’ Loan Act,’’ after ‘‘banking insti-
tution’’; and
(ii) by inserting ‘‘or savings associa-
tions’’ after ‘‘having supervision over
banks’’.
(2) CONFORMING
AMENDMENTS.—Subsections
(a)(1)(A)(i), (a)(1)(B), (a)(2), and (b) of section
210A of such Act (15 U.S.C. 80b–10a), as added by
section 220 of the Gramm-Leach-Bliley Act, are
each amended by striking ‘‘bank holding company’’
each place it occurs and inserting ‘‘bank holding
company or savings and loan holding company’’.
(c) CONFORMING AMENDMENT TO THE INVESTMENT
COMPANY ACT OF 1940.—Section 10(c) of the Investment
Company Act of 1940 (15 U.S.C. 80a–10(c)), as amended
by section 213(c) of the Gramm-Leach-Bliley Act, is
amended by inserting after ‘‘1956)’’ the following: ‘‘or any
one savings and loan holding company (together with its
affiliates and subsidiaries) (as such terms are defined in
section 10 of the Home Owners’ Loan Act)’’.
SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIA-
TIONS AUTHORIZED TO PROMOTE THE PUB-
LIC WELFARE.
(a) IN GENERAL.—Section 5(c)(3) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)) is amended by adding
at the end the following new subparagraph:
‘‘(D) DIRECT INVESTMENTS TO PROMOTE
THE PUBLIC WELFARE.—
‘‘(i) IN GENERAL.—A Federal savings
association may make investments de-
signed primarily to promote the public wel-
fare, including the welfare of low- and
moderate-income communities or families
through the provision of housing, services,
and jobs.
‘‘(ii) DIRECT INVESTMENTS OR ACQUI-
SITION
OF
INTEREST
IN
OTHER
COMPA-
NIES.—Investments under clause (i) may
be made directly or by purchasing interests
in an entity primarily engaged in making
such investments.
‘‘(iii) PROHIBITION ON UNLIMITED LI-
ABILITY.—No investment may be made
under this subparagraph which would sub-
ject a Federal savings association to unlim-
ited liability to any person.
‘‘(iv) SINGLE
INVESTMENT
LIMITA-
TION
TO
BE
ESTABLISHED
BY
DIREC-
TOR.—Subject to clauses (v) and (vi), the
Director shall establish, by order or regula-
tion, limits on—
‘‘(I) the amount any savings as-
sociation may invest in any 1 project;
and
‘‘(II) the aggregate amount of in-
vestment of any savings association
under this subparagraph.
‘‘(v) FLEXIBLE AGGREGATE INVEST-
MENT
LIMITATION.—The 
aggregate
amount of investments of any savings asso-
ciation under this subparagraph may not
exceed an amount equal to 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, unless—
‘‘(I) the Director determines that
the savings association is adequately
capitalized; and
‘‘(II) the Director determines, by
order, that the aggregate amount of
investments in a higher amount than
the limit under this clause will pose
no significant risk to the affected de-
posit insurance fund.
‘‘(vi) MAXIMUM AGGREGATE INVEST-
MENT
LIMITATION.—Notwithstanding
clause (v), the aggregate amount of invest-
ments of any savings association under
this subparagraph may not exceed an
amount equal to the sum of 10 percent of
the savings association’s capital stock actu-
ally paid in and unimpaired and 10 per-
cent 
of 
the 
savings 
association’s
unimpaired surplus.
‘‘(vii) INVESTMENTS NOT SUBJECT TO
OTHER
LIMITATION
ON
QUALITY
OF
IN-
VESTMENTS.—No obligation a Federal sav-
ings association acquires or retains under
this subparagraph shall be taken into ac-
count for purposes of the limitation con-
tained in section 28(d) of the Federal De-
posit Insurance Act on the acquisition and
retention of any corporate debt security
not of investment grade.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 5(c)(3)(A) of the Home Owners’ Loan Act (12
U.S.C. 1464(c)(3)(A)) is amended to read as follows:
‘‘(A) [Repealed.]’’.
SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL
SAVINGS ASSOCIATIONS WITH NONDEPOSI-
TORY INSTITUTION AFFILIATES.
Section 5(d)(3) of the Home Owners’ Loan Act (12
U.S.C. 1464(d)(3)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) MERGERS
AND
CONSOLIDATIONS
WITH
NONDEPOSITORY
INSTITUTION
AFFILI-
ATES.—
‘‘(i) IN GENERAL.—Upon the approval
of the Director, a Federal savings associa-
tion may merge with any nondepository in-
stitution affiliate of the savings associa-
tion.
‘‘(ii) RULE
OF
CONSTRUCTION.—No
provision of clause (i) shall be construed
as—
‘‘(I) affecting the applicability of
section 18(c) of the Federal Deposit
Insurance Act; or
‘‘(II) granting a Federal savings
association any power or any author-
ity to engage in any activity that is
not authorized for a Federal savings
association under any other provision
of this Act or any other provision of
law.’’.
SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE RE-
QUIREMENT FOR SAVINGS ASSOCIATION SUB-
SIDIARIES OF SAVINGS AND LOAN HOLDING
COMPANIES.
Section 10(f) of the Home Owners’ Loan Act (12
U.S.C. 1467a(f)) is amended to read as follows:
‘‘(f) DECLARATION
OF DIVIDEND.—The Director
may—
‘‘(1) require a savings association that is a sub-
sidiary of a savings and loan holding company to
give prior notice to the Director of the intent of the
savings association to pay a dividend on its guar-
anty, permanent, or other nonwithdrawable stock;
and
‘‘(2) establish conditions on the payment of
dividends by such a savings association.’’.
SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR
TRUST OWNERSHIP OF SAVINGS ASSOCIA-
TIONS.
(a) IN GENERAL.—Section 10(a)(1)(C) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(C)) is
amended—
(1) by striking ‘‘trust,’’ and inserting ‘‘business
trust,’’; and
(2) by inserting ‘‘or any other trust unless by
its terms it must terminate within 25 years or not
later than 21 years and 10 months after the death
of individuals living on the effective date of the
trust,’’ after ‘‘or similar organization,’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 10(a)(3) of the Home Owners’ Loan Act (12
U.S.C. 1467a(a)(3)) is amended—
(1) by striking ‘‘does not include—’’ and all
that follows through ‘‘any company by virtue’’ where
such term appears in subparagraph (A) and insert-
ing ‘‘does not include any company by virtue’’;
(2) by striking ‘‘; and’’ at the end of subpara-
graph (A) and inserting a period; and
(3) by striking subparagraph (B).
SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING
PURCHASED MORTGAGE SERVICING RIGHTS.
Section 5(t) of the Home Owners’ Loan Act (12
U.S.C. 1464(t)) is amended—
(1) by striking paragraph (4) and inserting the
following new paragraph:
‘‘(4) [Repealed.]’’; and
(2) in paragraph (9)(A), by striking ‘‘intangible
assets, plus’’ and all that follows through the period
at the end and inserting ‘‘intangible assets.’’.
SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL
SAVINGS ASSOCIATIONS TO INVEST IN SMALL
BUSINESS INVESTMENT COMPANIES.
Subparagraph (D) of section 5(c)(4) of the Home
Owners’ Loan Act (12 U.S.C. 1464(c)(4)) is amended to
read as follows:
‘‘(D) SMALL BUSINESS INVESTMENT COM-
PANIES.—Any Federal savings association may
invest in 1 or more small business investment
companies, or in any entity established to invest
solely in small business investment companies
formed under the Small Business Investment
Act of 1958, except that the total amount of in-
vestments under this subparagraph may not at
any time exceed the amount equal to 5 percent
of capital and surplus of the savings associa-
tion.’’.
SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN
AUTO LOANS.
(a) IN GENERAL.—Section 5(c)(1) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(c)(1)) is amended by add-
ing at the end the following new subparagraph:
‘‘(V) AUTO LOANS.—Loans and leases for
motor vehicles acquired for personal, family, or
household purposes.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING TO QUALIFIED THRIFT INVESTMENTS.—Section
10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12
U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the
end the following new subclause:
‘‘(VIII) Loans and leases for
motor vehicles acquired for personal,
family, or household purposes.’’.
SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS.
Section 15(h) of the Securities Exchange Act of
1934 (15 U.S.C. 78o(h)) is amended by adding at
the end the following new paragraph:
‘‘(4) SELLING
AND
OFFERING
OF
DEPOSIT
PRODUCTS.—No law, rule, regulation, or order, or
other administrative action of any State or political
subdivision thereof shall directly or indirectly require
any individual who is an agent of 1 Federal savings
association (as such term is defined in section 2(5)
of the Home Owners’ Loan Act (12 U.S.C. 1462(5))
in selling or offering deposit (as such term is defined
in section 3 of the Federal Deposit Insurance Act
(12 U.S.C. 1813(l)) products issued by such associa-
tion to qualify or register as a broker, dealer, associ-
ated person of a broker, or associated person of a
dealer, or to qualify or register in any other similar
status or capacity, if the individual does not—
‘‘(A) accept deposits or make withdrawals
on behalf of any customer of the association;
‘‘(B) offer or sell a deposit product as an
agent for another entity that is not subject to
supervision and examination by a Federal bank-
ing agency (as defined in section 3(z) of the
Federal Deposit Insurance Act (12 U.S.C.
1813(z)), the National Credit Union Adminis-
tration, or any officer, agency, or other entity
of any State which has primary regulatory au-
thority over State banks, State savings associa-
tions, or State credit unions;
‘‘(C) offer or sell a deposit product that is
not an insured deposit (as defined in section
3(m) of the Federal Deposit Insurance Act (12
U.S.C. 1813(m)));
‘‘(D) offer or sell a deposit product which
contains a feature that makes it callable at the
option of such Federal savings association; or
‘‘(E) create a secondary market with re-
spect to a deposit product or otherwise add en-
hancements or features to such product inde-
pendent of those offered by the association.’’.
SEC. 210. FUNERAL- AND CEMETERY-RELATED FIDUCIARY
SERVICES.
Section 5(n) of the Home Owners’ Loan Act (12
U.S.C. 1464(n)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(11) FUNERAL- AND CEMETERY-RELATED FI-
DUCIARY SERVICES.—
‘‘(A) IN GENERAL.—A funeral director or
cemetery operator, when acting in such capac-
ity, (or any other person in connection with a
contract or other agreement with a funeral di-
rector or cemetery operator) may engage any
Federal savings association, regardless of where
the association is located, to act in any fidu-
ciary capacity in which the savings association
has the right to act in accordance with this sec-
tion, including holding funds deposited in trust
or escrow by the funeral director or cemetery
operator (or by such other party), and the sav-
ings association may act in such fiduciary ca-
pacity on behalf of the funeral director or ceme-
tery operator (or such other person).
‘‘(B) DEFINITIONS.—For purposes of this
paragraph, the following definitions shall apply:
‘‘(i) CEMETERY.—The term ‘ceme-
tery’ means any land or structure used, or
intended to be used, for the interment of
human remains in any form.
‘‘(ii) 
CEMETERY
OPERATOR.—The
term ‘cemetery operator’ means any person
who contracts or accepts payment for mer-
chandise, endowment, or perpetual care
services in connection with a cemetery.
‘‘(iii) FUNERAL DIRECTOR.—The term
‘funeral director’ means any person who
contracts or accepts payment to provide or
arrange—
‘‘(I) services for the final disposi-
tion of human remains; or
‘‘(II) funeral services, property,
or merchandise (including cemetery
services, property, or merchandise).’’.
SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER RE-
QUIREMENT 
WITH 
RESPECT 
TO 
OUT-OF-
STATE BRANCHES.
Section 5(r)(1) of the Home Owners’ Loan Act (12
U.S.C. 1464(r)(1)) is amended by striking the last sen-
tence.
SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL
LOANS.
(a) ELIMINATION
OF LENDING LIMIT
ON SMALL
BUSINESS LOANS.—Section 5(c)(1) of the Home Owners’
Loan Act (12 U.S.C. 1464(c)(1)) is amended by inserting
after subparagraph (V) (as added by section 208 of this
title) the following new subparagraph:
‘‘(W) SMALL
BUSINESS
LOANS.—Small
business loans, as defined in regulations which
the Director shall prescribe.’’.
(b) INCREASE IN LENDING LIMIT ON OTHER BUSI-
NESS LOANS.—Section 5(c)(2)(A) of the Home Owners’
Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by strik-
ing ‘‘, and amounts in excess of 10 percent’’ and all that
follows through ‘‘by the Director’’.
SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS
ASSOCIATIONS FOR FEDERAL COURT JURIS-
DICTION.
Section 5 of the Home Owners’ Loan Act (12 U.S.C.
1464) is amended by adding at the end the following new
subsection:
‘‘(x) HOME STATE CITIZENSHIP.—In determining
whether a Federal court has diversity jurisdiction over a
case in which a Federal savings association is a party, the
Federal savings association shall be considered to be a cit-
izen only of the State in which such savings association
has its home office.’’.
TITLE III—CREDIT UNION
PROVISIONS
SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR-
IZED TO BECOME MEMBERS OF A FEDERAL
HOME LOAN BANK.
(a) IN GENERAL.—Section 4(a) of the Federal Home
Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding
at the end the following new paragraph:
‘‘(5) CERTAIN
PRIVATELY
INSURED
CREDIT
UNIONS.—
‘‘(A) IN GENERAL.—A credit union which
has been determined, in accordance with section
43(e)(1) of the Federal Deposit Insurance Act
and subject to the requirements of subpara-
graph (B), to meet all eligibility requirements
for Federal deposit insurance shall be treated
as an insured depository institution for pur-
poses of determining the eligibility of such cred-
it union for membership in a Federal home loan
bank under paragraphs (1), (2), and (3).
‘‘(B) CERTIFICATION BY APPROPRIATE SU-
PERVISOR.—
‘‘(i) IN
GENERAL.—For purposes of
this paragraph and subject to clause (ii), a
credit union which lacks Federal deposit
insurance and which has applied for mem-
bership in a Federal home loan bank may
be treated as meeting all the eligibility re-
quirements for Federal deposit insurance
only if the appropriate supervisor of the
State in which the credit union is char-
tered has determined that the credit union
meets all the eligibility requirements for
Federal deposit insurance as of the date of
the application for membership.
‘‘(ii) 
CERTIFICATION
DEEMED
VALID.—If, in the case of any credit union
to which clause (i) applies, the appropriate
supervisor of the State in which such cred-
it union is chartered fails to make a deter-
mination pursuant to such clause by the
end of the 6-month period beginning on
the date of the application, the credit
union shall be deemed to have met the re-
quirements of clause (i).
‘‘(C) SECURITY INTERESTS OF FEDERAL
HOME LOAN BANK NOT AVOIDABLE.—Notwith-
standing any provision of State law authorizing
a conservator or liquidating agent of a credit
union to repudiate contracts, no such provision
shall apply with respect to—
‘‘(i) any extension of credit from any
Federal home loan bank to any credit
union which is a member of any such bank
pursuant to this paragraph; or
‘‘(ii) any security interest in the as-
sets of such credit union securing any such
extension of credit.’’.
(b) COPIES OF AUDITS OF PRIVATE INSURERS OF
CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE
PROVIDED
TO
SUPERVISORY
AGENCIES.—Section
43(a)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1831t(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A)(i);
(2) by striking the period at the end of clause
(ii) of subparagraph (A) and inserting a semicolon;
(3) by inserting the following new clauses at the
end of subparagraph (A):
‘‘(iii) in the case of depository institu-
tions described in subsection (f)(2)(A) the
deposits of which are insured by the pri-
vate insurer, the National Credit Union
Administration, not later than 7 days after
that audit is completed; and
‘‘(iv) in the case of depository institu-
tions described in subsection (f)(2)(A) the
deposits of which are insured by the pri-
vate insurer which are members of a Fed-
eral home loan bank, the Federal Housing
Finance Board, not later than 7 days after
that audit is completed.’’; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(C) CONSULTATION.—The appropriate
supervisory agency of each State in which a pri-
vate deposit insurer insures deposits in an insti-
tution described in subsection (f)(2)(A) which—
‘‘(i) lacks Federal deposit insurance;
and
‘‘(ii) has become a member of a Fed-
eral home loan bank,
shall provide the National Credit Union Admin-
istration, upon request, with the results of any
examination and reports related thereto con-
cerning the private deposit insurer to which
such agency may have in its possession.’’.
SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR
CREDIT UNIONS.
(a) IN GENERAL.—Section 124 of the Federal Credit
Union Act (12 U.S.C. 1770) is amended—
(1) by striking ‘‘Upon application by any credit
union’’ and inserting ‘‘Notwithstanding any other
provision of law, upon application by any credit
union’’;
(2) by inserting ‘‘on lands reserved for the use
of, and under the exclusive or concurrent jurisdiction
of, the United States or’’ after ‘‘officer or agency of
the United States charged with the allotment of
space’’;
(3) by inserting ‘‘lease land or’’ after ‘‘such of-
ficer or agency may in his or its discretion’’; and
(4) by inserting ‘‘or the facility built on the
lease land’’ after ‘‘credit union to be served by the
allotment of space’’.
(b) CLERICAL AMENDMENT.—The heading for sec-
tion 124 is amended by inserting ‘‘OR FEDERAL LAND’’
after ‘‘BUILDINGS’’.
SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED-
IT UNIONS.
Section 107 of the Federal Credit Union Act (12
U.S.C. 1757) is amended—
(1) in the matter preceding paragraph (1) by
striking ‘‘A Federal credit union’’ and inserting ‘‘(a)
IN GENERAL.—Any Federal credit union’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) ADDITIONAL INVESTMENT AUTHORITY.—
‘‘(1) IN GENERAL.—In adition to any invest-
ments otherwise authorized, a Federal credit union
may purchase and hold for its own account such in-
vestment securities of investment grade as the
Board may authorize by regulation, subject to such
limitations and restrictions as the Board may pre-
scribe in the regulations.
‘‘(2) PERCENTAGE LIMITATIONS.—
‘‘(A) SINGLE OBLIGOR.—In no event may
the total amount of investment securities of any
single obligor or maker held by a Federal credit
union for the credit union’s own account exceed
at any time an amount equal to 10 percent of
the net worth of the credit union.
‘‘(B) AGGREGATE
INVESTMENTS.—In no
event may the aggregate amount of investment
securities held by a Federal credit union for the
credit union’s own account exceed at any time
an amount equal to 10 percent of the assets of
the credit union.
‘‘(3) INVESTMENT SECURITY DEFINED.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, the term ‘investment security’
means marketable obligations evidencing the in-
debtedness of any person in the form of bonds,
notes, or debentures and other instruments
commonly referred to as investment securities.
‘‘(B) FURTHER DEFINITION BY BOARD.—
The Board may further define the term ‘invest-
ment security’.
‘‘(4) INVESTMENT GRADE DEFINED.—The term
‘investment grade’ means with respect to an invest-
ment security purchased by a credit union for its
own account, an investment security that at the time
of such purchase is rated in one of the 4 highest rat-
ing categories by at least 1 nationally recognized
statistical rating organization.
‘‘(5) CLARIFICATION
OF
PROHIBITION
ON
STOCK OWNERSHIP.—No provision of this subsection
shall be construed as authorizing a Federal credit
union to purchase shares of stock of any corporation
for the credit union’s own account, except as other-
wise permitted by law.’’.
SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF
TERM OF FEDERAL CREDIT UNION LOANS TO
15 YEARS.
Section 107(a)(5) of the Federal Credit Union Act
(12 U.S.C. 1757(5)) (as so designated by section 303 of
this title) is amended—
(1) in the matter preceding subparagraph (A),
by striking ‘‘to make loans, the maturities of which
shall not exceed twelve years except as otherwise
provided herein’’ and inserting ‘‘to make loans, the
maturities of which shall not exceed 15 years or any
longer maturity as the Board may allow, in regula-
tions, except as otherwise provided in this Act’’;
(2) in subparagraph (A)—
(A) by striking clause (ii);
(B) by redesignating clauses (iii) through
(x) as clauses (ii) through (ix), respectively; and
(C) by inserting ‘‘and’’ after the semicolon
at the end of clause (viii) (as so redesignated).
SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN
CREDIT UNION SERVICE ORGANIZATIONS.
Section 107(a)(7)(I) of the Federal Credit Union Act
(12 U.S.C. 1757(7)(I)) (as so designated by section 303
of this title) is amended by striking ‘‘up to 1 per centum
of the total paid’’ and inserting ‘‘up to 3 percent of the
total paid’’.
SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS
TO NONPROFIT RELIGIOUS ORGANIZATIONS.
Section 107A(a) of the Federal Credit Union Act (12
U.S.C. 1757a(a)) is amended by inserting ‘‘, excluding
loans made to nonprofit religious organizations,’’ after
‘‘total amount of such loans’’.
SEC. 307. CHECK CASHING AND MONEY TRANSFER SERV-
ICES OFFERED WITHIN THE FIELD OF MEM-
BERSHIP.
Paragraph (12) of section 107(a) of the Federal
Credit Union Act (12 U.S.C. 1757(12)) (as so designated
by section 303 of this title) is amended to read as follows:
‘‘(12) in accordance with regulations prescribed
by the Board—
‘‘(A) to sell, to persons in the field of
membership, negotiable checks (including trav-
elers checks), money orders, and other similar
money transfer instruments (including elec-
tronic fund transfers); and
‘‘(B) to cash checks and money orders and
receive electronic fund transfers for persons in
the field of membership for a fee;’’.
SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE
COMMON-BOND CREDIT UNIONS.
Section 109(d)(2) of the Federal Credit Union Act
(12 U.S.C. 1759(d)(2)) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii) of
subparagraph (B);
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; or’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D) a merger involving any such Federal
credit union approved by the Board on or after
August 7, 1998.’’.
SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CRED-
IT UNIONS.
Section 109(g) of the Federal Credit Union Act (12
U.S.C. 1759(g)) is amended by inserting after paragraph
(2) the following new paragraph:
‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP
OF CERTAIN MEMBER GROUPS IN COMMUNITY CHAR-
TER CONVERSIONS.—In the case of a voluntary con-
version of a common-bond credit union described in
paragraph (1) or (2) of subsection (b) into a com-
munity credit union described in subsection (b)(3),
the Board shall prescribe, by regulation, the criteria
under which the Board may determine that a mem-
ber group or other portion of a credit union’s exist-
ing membership, that is located outside the well-de-
fined local community, neighborhood, or rural dis-
trict that shall constitute the community charter,
can be satisfactorily served by the credit union and
remain within the community credit union’s field of
membership.’’.
SEC. 310. CREDIT UNION GOVERNANCE.
(a) EXPULSION OF MEMBERS FOR JUST CAUSE.—
Subsection (b) of section 118 of the Federal Credit Union
Act (12 U.S.C. 1764(b)) is amended to read as follows:
‘‘(b) POLICY AND ACTIONS OF BOARDS OF DIREC-
TORS OF FEDERAL CREDIT UNIONS.—
‘‘(1) EXPULSION
OF
MEMBERS
FOR
NON-
PARTICIPATION OR FOR JUST CAUSE.—The board of
directors of a Federal credit union may, by majority
vote of a quorum of directors, adopt and enforce a
policy with respect to expulsion from membership,
by a majority vote of such board of directors, based
on just cause, including disruption of credit union
operations, or on nonparticipation by a member in
the affairs of the credit union.
‘‘(2) WRITTEN
NOTICE
OF
POLICY
TO
MEM-
BERS.—If a policy described in paragraph (1) is
adopted, written notice of the policy as adopted and
the effective date of such policy shall be provided
to—
‘‘(A) each existing member of the credit
union not less than 30 days prior to the effec-
tive date of such policy; and
‘‘(B) each new member prior to or upon
applying for membership.’’.
(b) TERM LIMITS AUTHORIZED FOR BOARD MEM-
BERS OF FEDERAL CREDIT UNIONS.—Section 111(a) of
the Federal Credit Union Act (12 U.S.C. 1761(a)) is
amended by adding at the end the following new sentence:
‘‘The bylaws of a Federal credit union may limit the num-
ber of consecutive terms any person may serve on the
board of directors of such credit union.’’.
(c) REIMBURSEMENT FOR LOST WAGES DUE TO
SERVICE ON CREDIT UNION BOARD NOT TREATED AS
COMPENSATION.—Section 111(c) of the Federal Credit
Union Act (12 U.S.C. 1761(c)) is amended by inserting
‘‘, including lost wages,’’ after ‘‘the reimbursement of rea-
sonable expenses’’.
SEC. 311. PROVIDING THE NATIONAL CREDIT UNION AD-
MINISTRATION WITH GREATER FLEXIBILITY
IN RESPONDING TO MARKET CONDITIONS.
Section 107(a)(5)(A)(vi)(I) of the Federal Credit
Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated
by section 303 of this title) is amended by striking ‘‘six-
month period and that prevailing interest rate levels’’ and
inserting ‘‘6-month period or that prevailing interest rate
levels’’.
SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION
REQUIREMENT OF THE CLAYTON ACT.
Section 7A(c)(7) of the Clayton Act (15 U.S.C.
18a(c)(7)) is amended by inserting ‘‘section 205(b)(3) of
the Federal Credit Union Act (12 U.S.C. 1785(b)(3)),’’
before ‘‘or section 3’’.
SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY
INSTITUTIONS UNDER SECURITIES LAWS.
(a) DEFINITION OF BANK UNDER THE SECURITIES
EXCHANGE ACT OF 1934.—Section 3(a)(6) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) (as
amended by section 201(a)(1) of this Act) is amended—
(1) by striking ‘‘this title, and (D) a receiver’’
and inserting ‘‘this title, (D) an insured credit union
(as defined in section 101(7) of the Federal Credit
Union Act) but only for purposes of paragraphs (4)
and (5) of this subsection and only for activities oth-
erwise authorized by applicable laws to which such
credit unions are subject, and (E) a receiver’’; and
(2) in subparagraph (E) (as so redesignated by
paragraph (1) of this subsection) by striking ‘‘(A),
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’.
(b) DEFINITION OF BANK UNDER THE INVESTMENT
ADVISERS ACT OF 1940.—Section 202(a)(2) of the In-
vestment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2))
(as amended by section 201(b)(1) of this Act) is
amended—
(1) by striking ‘‘this title, and (D) a receiver’’
and inserting ‘‘this title, (D) an insured credit union
(as defined in section 101(7) of the Federal Credit
Union Act) but only for activities otherwise author-
ized by applicable laws to which such credit unions
are subject, and (E) a receiver’’; and
(2) in subparagraph (E) (as so redesignated by
paragraph (1) of this subsection) by striking ‘‘(A),
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’.
(c) DEFINITION OF APPROPRIATE FEDERAL BANK-
ING AGENCY.—Section 210A(c) of the Investment Advis-
ers Act of 1940 (15 U.S.C. 80b–10a(c)) is amended by
inserting ‘‘and includes the National Credit Union Admin-
istration Board, in the case of an insured credit union (as
defined in section 101(7) of the Federal Credit Union
Act)’’ before the period at the end.
TITLE IV—DEPOSITORY
INSTITUTION PROVISIONS
SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCH-
ING AND MERGERS.
(a) DE NOVO INTERSTATE BRANCHES OF NATIONAL
BANKS.—
(1) IN GENERAL.—Section 5155(g)(1) of the
Revised Statutes of the United States (12 U.S.C.
36(g)(1)) is amended by striking ‘‘maintain a
branch if—’’ and all that follows through the end of
subparagraph (B) and inserting ‘‘maintain a
branch.’’.
(2) CLERICAL AMENDMENT.—The heading for
subsection (g) of section 5155 of the Revised Stat-
utes of the United States is amended by striking
‘‘STATE ‘OPT-IN’ ELECTION TO PERMIT’’.
(b) DE NOVO INTERSTATE BRANCHES OF STATE
NONMEMBER BANKS.—
(1) IN GENERAL.—Section 18(d)(4)(A) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1828(d)(4)(A)) is amended by striking ‘‘maintain a
branch if—’’ and all that follows through the end of
clause (ii) and inserting ‘‘maintain a branch.’’.
(2) INTERSTATE BRANCHING BY SUBSIDIARIES
OF
COMMERCIAL
FIRMS
PROHIBITED.—Section
18(d)(3)) of the Federal Deposit Insurance Act (12
U.S.C. 1828(d)(3)) is amended by adding at the end
the following new subparagraph:
‘‘(C) INTERSTATE BRANCHING BY SUBSIDI-
ARIES OF COMMERCIAL FIRMS PROHIBITED.—
‘‘(i) IN GENERAL.—If the appropriate
State bank supervisor of the home State of
any industrial loan company, industrial
bank, or other institution described in sec-
tion 2(c)(2)(H) of the Bank Holding Com-
pany Act of 1956, or the appropriate State
bank supervisor of any host State with re-
spect to such company, bank, or institu-
tion, determines that such company, bank,
or institution is controlled, directly or indi-
rectly, by a commercial firm, such com-
pany, bank, or institution may not acquire,
establish, or operate a branch in such host
State.
‘‘(ii) COMMERCIAL FIRM DEFINED.—
For purposes of this subsection, the term
‘commercial firm’ means any entity at least
15 percent of the annual gross revenues of
which on a consolidated basis, including all
affiliates of the entity, were derived from
engaging, on an on-going basis, in activi-
ties that are not financial in nature or inci-
dental to a financial activity during at
least 3 of the prior 4 calendar quarters.
‘‘(iii) 
GRANDFATHERED
INSTITU-
TIONS.—Clause (i) shall not apply with re-
spect to any industrial loan company, in-
dustrial bank, or other institution de-
scribed in section 2(c)(2)(H) of the Bank
Holding Company Act of 1956—
‘‘(I) which became an insured de-
pository institution before October 1,
2003 or pursuant to an application
for deposit insurance which was ap-
proved by the Corporation before such
date; and
‘‘(II) with respect to which there
is no change in control, directly or in-
directly, of the company, bank, or in-
stitution after September 30, 2003,
that requires an application under
subsection (c), section 7(j), section 3
of the Bank Holding Company Act of
1956, or section 10 of the Home
Owners’ Loan Act.
‘‘(iv) TRANSITION
PROVISION.—Any
divestiture required under this subpara-
graph of a branch in a host State shall be
completed as quickly as is reasonably pos-
sible.
‘‘(v) CORPORATE
REORGANIZATIONS
PERMITTED.—The acquisition of direct or
indirect control of the company, bank, or
institution referred to in clause (iii)(II)
shall not be treated as a ‘change in con-
trol’ for purposes of such clause if the
company acquiring control is itself directly
or indirectly controlled by a company that
was an affiliate of such company, bank, or
institution on the date referred to in clause
(iii)(II), and remained an affiliate at all
times after such date.’’.
(3) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 18(d)(4) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(d)(4)) is amended—
(A) in subparagraph (A) by striking ‘‘Sub-
ject to subparagraph (B)’’ and inserting ‘‘Sub-
ject to subparagraph (B) and paragraph
(3)(C)’’; and
(B) in subparagraphs (D) and (E), by
striking ‘‘The term’’ and inserting ‘‘For pur-
poses of this subsection, the term’’.
(4) CLERICAL AMENDMENT.—The heading for
paragraph (4) of section 18(d) of the Federal De-
posit Insurance Act is amended by striking ‘‘STATE
‘OPT-IN’ ELECTION TO PERMIT INTERSTATE’’ and in-
serting ‘‘INTERSTATE’’.
(c) DE NOVO INTERSTATE BRANCHES OF STATE
MEMBER BANKS.—The 3rd undesignated paragraph of
section 9 of the Federal Reserve Act (12 U.S.C. 321) is
amended by adding at the end the following new sen-
tences: ‘‘A State member bank may establish and operate
a de novo branch in a host State (as such terms are de-
fined in section 18(d) of the Federal Deposit Insurance
Act) on the same terms and conditions and subject to the
same limitations and restrictions as are applicable to the
establishment of a de novo branch of a national bank in
a host State under section 5155(g) of the Revised Statutes
of the United States or are applicable to an insured State
nonmember bank under section 18(d)(3) of the Federal
Deposit Insurance Act’’ after ‘‘Revised Statutes of the
United States’’. Such section 5155(g) shall be applied for
purposes of the preceding sentence by substituting ‘Board
of Governors of the Federal Reserve System’ for ‘Comp-
troller of the Currency’ and ‘State member bank’ for ‘na-
tional bank’.’’.
(d) INTERSTATE MERGER OF BANKS.—
(1) MERGER OF INSURED BANK WITH ANOTHER
DEPOSITORY
INSTITUTION
OR
TRUST
COMPANY.—
Section 44(a)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1831u(a)(1)) is amended—
(A) by striking ‘‘Beginning on June 1,
1997, the’’ and inserting ‘‘The’’; and
(B) by striking ‘‘insured banks with dif-
ferent home States’’ and inserting ‘‘an insured
bank and another insured depository institution
or trust company with a different home State
than the resulting insured bank’’.
(2) NATIONAL BANK TRUST COMPANY MERGER
WITH OTHER TRUST COMPANY.—Subsection (b) of
section 4 of the National Bank Consolidation and
Merger Act (12 U.S.C. 215a–1(b)) is amended to
read as follows:
‘‘(b) MERGER OF NATIONAL BANK TRUST COMPANY
WITH ANOTHER TRUST COMPANY.—A national bank that
is a trust company may engage in a consolidation or merg-
er under this Act with any trust company with a different
home State, under the same terms and conditions that
would apply if the trust companies were located within the
same State.’’.
(e) INTERSTATE
FIDUCIARY
ACTIVITY.—Section
18(d) of the Federal Deposit Insurance Act (12 U.S.C.
1828(d)) is amended by adding at the end the following
new paragraph:
‘‘(5) INTERSTATE FIDUCIARY ACTIVITY.—
‘‘(A) AUTHORITY OF STATE BANK SUPER-
VISOR.—The State bank supervisor of a State
bank may approve an application by the State
bank, when not in contravention of home State
or host State law, to act as trustee, executor,
administrator, registrar of stocks and bonds,
guardian of estates, assignee, receiver, com-
mittee of estates of lunatics, or in any other fi-
duciary capacity in a host State in which State
banks or other corporations which come into
competition with national banks are permitted
to act under the laws of such host State.
‘‘(B) NONCONTRAVENTION OF HOST STATE
LAW.—Whenever the laws of a host State au-
thorize or permit the exercise of any or all of
the foregoing powers by State banks or other
corporations which compete with national
banks, the granting to and the exercise of such
powers by a State bank as provided in this
paragraph shall not be deemed to be in con-
travention of host State law within the meaning
of this paragraph.
‘‘(C) STATE BANK INCLUDES TRUST COM-
PANIES.—For purposes of this paragraph, the
term ‘State bank’ includes any State-chartered
trust company (as defined in section 44(g)).
‘‘(D) OTHER DEFINITIONS.—For purposes
of this paragraph, the term ‘home State’ and
‘host State’ have the meanings given such
terms in section 44.’’.
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 44 of the Federal Deposit Insurance
Act (12 U.S.C. 1831u) is amended—
(A) in subsection (a)—
(i) by striking paragraph (4) and in-
serting the following new paragraph:
‘‘(4) TREATMENT OF BRANCHES IN CONNEC-
TION WITH CERTAIN INTERSTATE MERGER TRANS-
ACTIONS.—In the case of an interstate merger
transaction which involves the acquisition of a
branch of an insured depository institution or trust
company without the acquisition of the insured de-
pository institution or trust company, the branch
shall be treated, for purposes of this section, as an
insured depository institution or trust company the
home State of which is the State in which the
branch is located.’’; and
(ii) by striking paragraphs (5) and (6)
and inserting the following new paragraph:
‘‘(5) APPLICABILITY
TO
INDUSTRIAL
LOAN
COMPANIES.—No provision of this section shall be
construed as authorizing the approval of any trans-
action involving a industrial loan company, indus-
trial bank, or other institution described in section
2(c)(2)(H) of the Bank Holding Company Act of
1956, or the acquisition, establishment, or operation
of a branch by any such company, bank, or institu-
tion, that is not allowed under section 18(d)(3).’’.
(B) in subsection (b)—
(i) by striking ‘‘bank’’ each place such
term appears in paragraph (2)(B)(i) and
inserting ‘‘insured depository institution’’;
(ii) by striking ‘‘banks’’ where such
term appears in paragraph (2)(E) and in-
serting ‘‘insured depository institutions or
trust companies’’;
(iii) by striking ‘‘bank affiliate’’ each
place such term appears in that portion of
paragraph (3) that precedes subparagraph
(A) and inserting ‘‘insured depository insti-
tution affiliate’’;
(iv) by striking ‘‘any bank’’ where
such term appears in paragraph (3)(B)
and inserting ‘‘any insured depository in-
stitution’’;
(v) by striking ‘‘bank’’ where such
term appears in paragraph (4)(A) and in-
serting ‘‘insured depository institution and
trust company’’; and
(vi) by striking ‘‘all banks’’ where
such term appears in paragraph (5) and
inserting ‘‘all insured depository institu-
tions and trust companies’’;
(C) in subsection (d)(1), by striking ‘‘any
bank’’ and inserting ‘‘any insured depository in-
stitution or trust company’’;
(D) in subsection (e)—
(i) by striking ‘‘1 or more banks’’ and
inserting ‘‘1 or more insured depository in-
stitutions’’; and
(ii) by striking ‘‘paragraph (2), (4), or
(5)’’ and inserting ‘‘paragraph (2)’’;
(E) by striking clauses (i) and (ii) of sub-
section (g)(4)(A) and inserting the following
new clauses:
‘‘(i) with respect to a national bank or
Federal savings association, the State in
which the main office of the bank or sav-
ings association is located; and
‘‘(ii) with respect to a State bank,
State savings association, or State-char-
tered trust company, the State by which
the bank, savings association, or trust
company is chartered; and’’;
(F) by striking paragraph (5) of subsection
(g) and inserting the following new paragraph:
‘‘(5) HOST
STATE.—The term ‘host State’
means—
‘‘(A) with respect to a bank, a State, other
than the home State of the bank, in which the
bank maintains, or seeks to establish and main-
tain, a branch; and
‘‘(B) with respect to a trust company and
solely for purposes of section 18(d)(5), a State,
other than the home State of the trust com-
pany, in which the trust company acts, or seeks
to act, in 1 or more fiduciary capacities.’’;
(G) in subsection (g)(10), by striking ‘‘sec-
tion 18(c)(2)’’ and inserting ‘‘paragraph (1) or
(2) of section 18(c), as appropriate,’’; and
(H) in subsection (g), by adding at the end
the following new paragraph:
‘‘(12) TRUST COMPANY.—The term ‘trust com-
pany’ means—
‘‘(A) any national bank;
‘‘(B) any savings association; and
‘‘(C) any bank, banking association, trust
company, savings bank, or other banking insti-
tution which is incorporated under the laws of
any State,
that is authorized to act in 1 or more fiduciary ca-
pacities but is not engaged in the business of receiv-
ing deposits other than trust funds (as defined in
section 3(p)).’’.
(2) Section 3(d) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842(d)) is amended—
(A) in paragraph (1)—
(i) by striking subparagraphs (B) and
(C); and
(ii) by redesignating subparagraph
(D) as subparagraph (B); and
(B) in paragraph (5), by striking ‘‘sub-
paragraph (B) or (D)’’ and inserting ‘‘subpara-
graph (B)’’.
(3) Subsection (c) of section 4 of the National
Bank Consolidation and Merger Act (12 U.S.C.
215a–1(c)) is amended to read as follows:
‘‘(c) DEFINITIONS.—For purposes of this section, the
terms ‘home State’, ‘out-of-State bank’, and ‘trust com-
pany’ each have the same meaning as in section 44(g) of
the Federal Deposit Insurance Act.’’.
(g) CLERICAL AMENDMENTS.—
(1) The heading for section 44(b)(2)(E) of the
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
1831u(b)(2)(E)) is amended by striking ‘‘BANKS’’
and inserting ‘‘INSURED DEPOSITORY INSTITUTIONS
AND TRUST COMPANIES’’.
(2) The heading for section 44(e) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831u(e)) is
amended by striking ‘‘BANKS’’ and inserting ‘‘IN-
SURED DEPOSITORY INSTITUTIONS’’.
SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW
OF APPOINTMENT OF A RECEIVER FOR DE-
POSITORY INSTITUTIONS.
(a) NATIONAL BANKS.—Section 2 of the National
Bank Receivership Act (12 U.S.C. 191) is amended—
(1) by striking ‘‘SECTION 2. The Comptroller of
the Currency’’ and inserting the following:
‘‘SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL
BANK.
‘‘(a) IN GENERAL.—The Comptroller of the Cur-
rency’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) JUDICIAL REVIEW.—If the Comptroller of the
Currency appoints a receiver under subsection (a), the na-
tional bank may, within 30 days thereafter, bring an ac-
tion in the United States district court for the judicial dis-
trict in which the home office of such bank is located, or
in the United States District Court for the District of Co-
lumbia, for an order requiring the Comptroller of the Cur-
rency to remove the receiver, and the court shall, upon
the merits, dismiss such action or direct the Comptroller
of the Currency to remove the receiver.’’.
(b) INSURED DEPOSITORY INSTITUTIONS.—Section
11(c)(7) of the Federal Deposit Insurance Act (12 U.S.C.
1821(c)(7)) is amended to read as follows:
‘‘(7) JUDICIAL REVIEW.—If the Corporation is
appointed (including the appointment of the Cor-
poration as receiver by the Board of Directors) as
conservator or receiver of a depository institution
under paragraph (4), (9), or (10), the depository in-
stitution may, within 30 days thereafter, bring an
action in the United States district court for the ju-
dicial district in which the home office of such de-
pository institution is located, or in the United
States District Court for the District of Columbia,
for an order requiring the Corporation to be re-
moved as the conservator or receiver (regardless of
how such appointment was made), and the court
shall, upon the merits, dismiss such action or direct
the Corporation to be removed as the conservator or
receiver.’’.
(c) EXPANSION OF PERIOD FOR CHALLENGING THE
APPOINTMENT
OF
A LIQUIDATING AGENT.—Subpara-
graph (B) of section 207(a)(1) of the Federal Credit
Union Act (12 U.S.C. 1787(a)(1)) is amended by striking
‘‘10 days’’ and inserting ‘‘30 days’’.
(d) EFFECTIVE DATE.—The amendments made by
subsections (a), (b), and (c) shall apply with respect to
conservators, receivers, or liquidating agents appointed on
or after the date of the enactment of this Act.
SEC. 403. REPORTING REQUIREMENTS RELATING TO IN-
SIDER LENDING.
(a) REPORTING REQUIREMENTS REGARDING LOANS
TO EXECUTIVE OFFICERS OF MEMBER BANKS.—Section
22(g) of the Federal Reserve Act (12 U.S.C. 375a) is
amended—
(1) by striking paragraphs (6) and (9); and
(2) by redesignating paragraphs (7), (8), and
(10) as paragraphs (6), (7), and (8), respectively.
(b) REPORTING REQUIREMENTS REGARDING LOANS
FROM CORRESPONDENT BANKS TO EXECUTIVE OFFI-
CERS AND SHAREHOLDERS OF INSURED BANKS.—Section
106(b)(2) of the Bank Holding Company Act Amend-
ments of 1970 (12 U.S.C. 1972(2)) is amended—
(1) by striking subparagraph (G); and
(2) by redesignating subparagraphs (H) and (I)
as subparagraphs (G) and (H), respectively.
SEC. 404. AMENDMENT TO PROVIDE AN INFLATION AD-
JUSTMENT FOR THE SMALL DEPOSITORY IN-
STITUTION EXCEPTION UNDER THE DEPOSI-
TORY 
INSTITUTION 
MANAGEMENT 
INTER-
LOCKS ACT.
Section 203(1) of the Depository Institution Manage-
ment Interlocks Act (12 U.S.C. 3202(1)) is amended by
striking ‘‘$20,000,000’’ and inserting ‘‘$100,000,000’’.
SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF IN-
SURED DEPOSITORY INSTITUTIONS.
(a) CLARIFICATION RELATING TO THE ENFORCE-
ABILITY OF AGREEMENTS AND CONDITIONS.—The Fed-
eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) is
amended by adding at the end the following new section:
‘‘SEC. 49. ENFORCEMENT OF AGREEMENTS.
‘‘(a) IN GENERAL.—Notwithstanding clause (i) or
(ii) of section 8(b)(6)(A) or section 38(e)(2)(E)(i), an ap-
propriate Federal banking agency may enforce, under sec-
tion 8, the terms of—
‘‘(1) any condition imposed in writing by the
agency on a depository institution or an institution-
affiliated party (including a bank holding company)
in connection with any action on any application, no-
tice, or other request concerning a depository insti-
tution; or
‘‘(2) any written agreement entered into be-
tween the agency and an institution-affiliated party
(including a bank holding company).
‘‘(b) RECEIVERSHIPS
AND CONSERVATORSHIPS.—
After the appointment of the Corporation as the receiver
or conservator for any insured depository institution, the
Corporation may enforce any condition or agreement de-
scribed in paragraph (1) or (2) of subsection (a) involving
such institution or any institution-affiliated party (includ-
ing a bank holding company), through an action brought
in an appropriate United States district court.’’.
(b) PROTECTION OF CAPITAL OF INSURED DEPOSI-
TORY INSTITUTIONS.—Paragraph (1) of section 18(u) of
the Federal Deposit Insurance Act (12 U.S.C. 1828(u))
is amended by striking subparagraph (B) and by redesig-
nating subparagraph (C) as subparagraph (B).
SEC. 406. INVESTMENTS BY INSURED SAVINGS ASSOCIA-
TIONS IN BANK SERVICE COMPANIES AU-
THORIZED.
(a) IN GENERAL.—Sections 2 and 3 of the Bank
Service Company Act (12 U.S.C. 1862, 1863) are each
amended by striking ‘‘insured bank’’ each place such term
appears and inserting ‘‘insured depository institution’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 1(b)(4) of the Bank Service Com-
pany Act (12 U.S.C. 1861(b)(4)) is amended—
(A) by inserting ‘‘, except when such term
appears in connection with the term ‘insured
depository institution’,’’ after ‘‘means’’; and
(B) by striking ‘‘Federal Home Loan Bank
Board’’ and inserting ‘‘Director of the Office of
Thrift Supervision’’.
(2) Section 1(b) of the Bank Service Company
Act (12 U.S.C. 1861(b)) is amended—
(A) by striking paragraph (5) and insert-
ing the following new paragraph:
‘‘(5) INSURED DEPOSITORY INSTITUTION.—The
term ‘insured depository institution’ has the mean-
ing given the term in section 3(c) of the Federal De-
posit Insurance Act;’’;
(B) by striking ‘‘and’’ at the end of para-
graph (7);
(C) by striking the period at the end of
paragraph (8) and inserting ‘‘; and’’; and
(D) by adding at the end the following new
paragraph:
‘‘(9) the terms ‘State depository institution’,
‘Federal depository institution’, ‘State savings asso-
ciation’ and ‘Federal savings association’ have the
meanings given the terms in section 3 of the Federal
Deposit Insurance Act.’’.
(3) The 1st sentence of section 5(c)(4)(B) of
the 
Home 
Owners’ 
Loan 
Act 
(12 
U.S.C.
1464(c)(4)(B)) is amended by striking ‘‘by savings
associations of such State and by Federal associa-
tions’’ and inserting ‘‘by State and Federal deposi-
tory institutions’’.
(4) Subparagraph (A)(ii) and subparagraph
(B)(ii) of section 1(b)(2) of the Bank Service Com-
pany Act (12 U.S.C. 1861(b)(2)) are each amended
by striking ‘‘insured banks’’ and inserting ‘‘insured
depository institutions’’.
(5) Section 1(b)(8) of the Bank Service Com-
pany Act (12 U.S.C. 1861(b)(8)) is further
amended—
(A) by striking ‘‘insured bank’’ and insert-
ing ‘‘insured depository institution’’;
(B) by striking ‘‘insured banks’’ each place
such term appears and inserting ‘‘insured de-
pository institutions’’; and
(C) by striking ‘‘the bank’s’’ and inserting
‘‘the depository institution’s’’.
(6) Section 2 of the Bank Service Company Act
(12 U.S.C. 1862) is amended by inserting ‘‘or sav-
ings associations, other than the limitation on the
amount of investment by a Federal savings associa-
tion contained in section 5(c)(4)(B) of the Home
Owners’ Loan Act’’ after ‘‘relating to banks’’.
(7) Section 4(c) of the Bank Service Company
Act (12 U.S.C. 1864(c)) is amended by inserting ‘‘or
State savings association’’ after ‘‘State bank’’ each
place such term appears.
(8) Section 4(d) of the Bank Service Company
Act (12 U.S.C. 1864(d)) is amended by inserting
‘‘or Federal savings association’’ after ‘‘national
bank’’ each place such term appears.
(9) Section 4(e) of the Bank Service Company
Act (12 U.S.C. 1864(e)) is amended to read as fol-
lows:
‘‘(e) A bank service company may perform—
‘‘(1) only those services that each depository in-
stitution shareholder or member is otherwise author-
ized to perform under any applicable Federal or
State law; and
‘‘(2) such services only at locations in a State
in which each such shareholder or member is author-
ized to perform such services.’’.
(10) Section 4(f) of the Bank Service Company
Act (12 U.S.C. 1864(f)) is amended by inserting ‘‘or
savings associations’’ after ‘‘location of banks’’.
(11) Section 5 of the Bank Service Company
Act (12 U.S.C. 1865) is amended—
(A) in subsection (a)—
(i) by striking ‘‘insured bank’’ and in-
serting ‘‘insured depository institution’’;
and
(ii) by striking ‘‘bank’s’’ and inserting
‘‘institution’s’’.
(B) in subsection (b), by striking ‘‘insured
bank’’ and inserting ‘‘insured depository insti-
tution’’; and
(C) in subsection (c)—
(i) by striking ‘‘the bank or banks’’
and inserting ‘‘any depository institution’’;
and
(ii) by striking ‘‘capability of the
bank’’ and inserting ‘‘capability of the de-
pository institution’’.
(12) Section 7 of the Bank Service Company
Act (12 U.S.C. 1867) is amended—
(A) in subsection (b), by striking ‘‘insured
bank’’ and inserting ‘‘insured depository insti-
tution’’; and
(B) in subsection (c)—
(i) by striking ‘‘a bank’’ each place
such term appears and inserting ‘‘a deposi-
tory institution’’; and
(ii) by striking ‘‘the bank’’ each place
such term appears and inserting ‘‘the de-
pository institution’’.
SEC. 407. CROSS GUARANTEE AUTHORITY.
Subparagraph (A) of section 5(e)(9) of the Federal
Deposit Insurance Act (12 U.S.C. 1815(e)(9)(A)) is
amended to read as follows:
‘‘(A) such institutions are controlled by the
same company; or’’.
SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK
HOLDING COMPANIES.
Subsection (k) of section 18 of the Federal Deposit
Insurance Act (12 U.S.C. 1828(k)) is amended—
(1) in paragraph (2)(A), by striking ‘‘or deposi-
tory institution holding company’’ and inserting ‘‘or
covered company’’;
(2) by striking subparagraph (B) of paragraph
(2) and inserting the following new subparagraph:
‘‘(B) Whether there is a reasonable basis
to believe that the institution-affiliated party is
substantially responsible for—
‘‘(i) the insolvency of the depository
institution or covered company;
‘‘(ii) the appointment of a conservator
or receiver for the depository institution; or
‘‘(iii) the depository institution’s trou-
bled condition (as defined in the regula-
tions 
prescribed 
pursuant 
to 
section
32(f)).’’;
(3) in paragraph (2)(F), by striking ‘‘depository
institution holding company’’ and inserting ‘‘covered
company,’’;
(4) in paragraph (3) in the matter preceding
subparagraph (A), by striking ‘‘depository institu-
tion holding company’’ and inserting ‘‘covered com-
pany’’;
(5) in paragraph (3)(A), by striking ‘‘holding
company’’ and inserting ‘‘covered company’’;
(6) in paragraph (4)(A)—
(A) by striking ‘‘depository institution
holding company’’ each place such term appears
and inserting ‘‘covered company’’; and
(B) by striking ‘‘holding company’’ each
place such term appears (other than in connec-
tion with the term referred to in subparagraph
(A)) and inserting ‘‘covered company’’;
(7) in paragraph (5)(A), by striking ‘‘depository
institution holding company’’ and inserting ‘‘covered
company’’;
(8) in paragraph (5), by adding at the end the
following new subparagraph:
‘‘(D) COVERED COMPANY.—The term ‘cov-
ered company’ means any depository institution
holding company (including any company re-
quired to file a report under section 4(f)(6) of
the Bank Holding Company Act of 1956), or
any other company that controls an insured de-
pository institution.’’; and
(9) in paragraph (6)—
(A) by striking ‘‘depository institution
holding company’’ and inserting ‘‘covered com-
pany,’’; and
(B) by striking ‘‘or holding company’’ and
inserting ‘‘or covered company’’.
SEC. 409. AMENDMENTS RELATING TO CHANGE IN BANK
CONTROL.
Section 7(j) of the Federal Deposit Insurance Act (12
U.S.C. 1817(j)) is amended—
(1) in paragraph (1)(D)—
(A) by striking ‘‘is needed to investigate’’
and inserting ‘‘is needed—
‘‘(i) to investigate’’;
(B) by striking ‘‘United States Code.’’ and
inserting ‘‘United States Code; or’’; and
(C) by adding at the end the following new
clause:
‘‘(ii) to analyze the safety and sound-
ness of any plans or proposals described in
paragraph (6)(E) or the future prospects
of the institution.’’; and
(2) in paragraph (7)(C), by striking ‘‘the finan-
cial condition of any acquiring person’’ and inserting
‘‘either the financial condition of any acquiring per-
son or the future prospects of the institution’’.
TITLE V—DEPOSITORY INSTITU-
TION 
AFFILIATES 
PROVI-
SIONS
SEC. 501. CLARIFICATION OF CROSS MARKETING PROVI-
SION.
Section 4(n)(5) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(n)(5)) is amended—
(1) in subparagraph (B), by striking ‘‘sub-
section (k)(4)(I)’’ and inserting ‘‘subparagraph (H)
or (I) of subsection (k)(4)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) THRESHOLD OF CONTROL.—Subpara-
graph (A) shall not apply with respect to a
company described or referred to in clause (i)
or (ii) of such subparagraph if the financial
holding company does not own or control 25
percent or more of the total equity or any class
of voting securities of such company.’’.