103D CONGRESS
1ST SESSION
H. R. 3474
AN ACT
To reduce administrative requirements for insured depository
institutions to the extent consistent with safe and sound
banking practices, to facilitate the establishment of com-
munity development financial institutions, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—REGULATORY REFORM
SEC. 100. SHORT TITLE; TABLE OF SECTIONS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Regulatory Reform Act of 1993’’.
(b) TABLE OF CONTENTS.—
TITLE I—REGULATORY REFORM
Sec. 100. Short title; table of sections.
Subtitle A—Amendments Relating to the Federal Deposit Insurance
Corporation Improvement Act of 1991
Sec. 101. Audit costs.
Sec. 102. 18-month examination rule for certain small institutions.
Sec. 103. Standards for safety and soundness.
Sec. 104. Clarifying amendment relating to data collection.
Subtitle B—General Regulatory Reform
Sec. 111. State regulation of real estate appraisals.
Sec. 112. Collateralization of public deposits.
Sec. 113. Bank Deposit Financial Assistance Program.
Sec. 114. Coordinated and unified examinations.
Sec. 115. Coordination of Federal and State reporting requirements to reduce
duplicative efforts.
Sec. 116. Limiting potential liability on foreign accounts.
Sec. 117. Expedited procedures for forming a bank holding company.
Sec. 118. Flexibility in choosing boards of directors.
Sec. 119. Repeal of obsolete requirements for national banks.
Sec. 120. Limited exemption authority.
Subtitle C—Other Regulatory Reform
Sec. 121. Elimination of duplicative disclosures for home equity loans.
Sec. 122. Alternative dispute resolutions.
Sec. 123. Clarification of RESPA disclosure requirements.
Sec. 124. Exemption of business loans from RESPA requirements.
Sec. 125. Expedited procedures for bank holding companies to seek approval to
engage in certain activities.
Sec. 126. Waiver of right of rescission for certain refinancing transactions.
Sec. 127. Simplified disclosure for existing depositors.
Sec. 128. Deposit broker registration.
Sec. 129. Agency ombudsman.
Sec. 130. Alternative rules for disclosures for radio advertising of credit trans-
actions, deposit accounts, and consumer leases.
Subtitle D—Reports, Studies, Streamlined Regulatory Requirements
Sec. 131. Study on capital standards and their impact on the economy.
Sec. 132. Study of the consumer credit system.
Sec. 133. Studies on the impact of the payment of interest on reserves.
Sec. 134. Streamlining of regulatory requirements.
Sec. 135. Call report simplification.
Sec. 136. Administrative consideration of burden with new regulations.
Sec. 137. Elimination of duplicative filings.
Sec. 138. Recourse agreements.
Sec. 139. Antitrust reports in connection with merger transactions.
Sec. 140. Bankers’ banks.
Sec. 141. Due process protections relating to attachment of assets.
Sec. 142. Time limit on agency consideration of completed applications.
Sec. 143. Timely completion of CRA review.
Sec. 144. Revisions of standards.
Sec. 145. Feasibility study of data bank.
Subtitle A—Amendments Relating
to the Federal Deposit Insur-
ance Corporation Improvement
Act of 1991
SEC. 101. AUDIT COSTS.
(a) HOLDING COMPANY AUDIT REQUIREMENTS.—
Section 36(i) of the Federal Deposit Insurance Act (12
U.S.C. 1831m(i)) is amended by striking paragraph (2)
and inserting the following:
‘‘(2) the institution is described in 1 of the fol-
lowing subparagraphs:
‘‘(A) The institution has total assets, as of
the beginning of such fiscal year, of less than
$5,000,000,000.
‘‘(B) The institution has—
‘‘(i) total assets, as of the beginning
of such fiscal year, of $5,000,000,000 or
more and less than $9,000,000,000; and
‘‘(ii) a CAMEL composite rating of 1
or 2 under the Uniform Financial Institu-
tions Rating System (or an equivalent rat-
ing under a comparable rating system) as
of the most recent examination of such in-
stitution by the Corporation or the appro-
priate Federal banking agency.
‘‘(C) The institution—
‘‘(i) has—
‘‘(I) total assets, as of the begin-
ning 
of 
such 
fiscal 
year, 
of
$9,000,000,000 or more; and
‘‘(II) a CAMEL composite rating
of 1 or 2 under the Uniform Financial
Institutions Rating System (or an
equivalent rating under a comparable
rating system) as of the most recent
examination of such institution by the
Corporation or the appropriate Fed-
eral banking agency; and
‘‘(ii) in the case of an institution
which has a CAMEL composite rating of
2, is in compliance with the requirements
of subsection (b) (without regard to any
exemption such institution may otherwise
have under this subsection from the re-
quirements of subsection (b)).
Notwithstanding paragraph (2), the audit committee of
the holding company of an insured depository institution
that the Corporation determines to be a large institution
shall not include any large customers of the institution.’’.
(b) WRITTEN NOTICE OF REQUIREMENT FOR AUDIT
OF QUARTERLY REPORTS.—Section 36(g)(2) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831m(g)(2)) is
amended by adding at the end the following new subpara-
graph:
‘‘(D) NOTICE TO INSTITUTION.—The Cor-
poration shall promptly notify an insured depos-
itory institution, in writing, of a determination
pursuant to subparagraph (A) to require a re-
view of such institution’s quarterly financial re-
ports.’’.
SEC. 102. 18-MONTH EXAMINATION RULE FOR CERTAIN
SMALL INSTITUTIONS.
(a) IN GENERAL.—Section 10(d)(4) of the Federal
Deposit Insurance Act (12 U.S.C. 1820(d)(4)) is amend-
ed—
(1) 
in 
subparagraph 
(A), 
by 
striking
‘‘$100,000,000’’ and inserting ‘‘$250,000,000’’;
(2) in subparagraph (C), by striking ‘‘and’’ at
the end;
(3) by redesignating subparagraph (D) as sub-
paragraph (E); and