H. R. 3474—73
SEC. 331. CLARIFICATION OF PROVISIONS RELATING TO ADMINISTRA-
TIVE AUTONOMY.
(a) PUBLIC LAW 93–495.—Section 111 of Public Law 93–495
(12 U.S.C. 250) is amended by inserting ‘‘the Comptroller of the
Currency,’’ after ‘‘Federal Deposit Insurance Corporation,’’.
(b) REVISED STATUTES.—
(1) SECTION
5240.—The third paragraph of section 5240
of the Revised Statutes (12 U.S.C. 482) is amended by inserting
‘‘or section 301(f)(1) of title 31, United States Code,’’ after
‘‘provisions of this section’’.
(2) SECTION 324.—Section 324 of the Revised Statutes (12
U.S.C. 1) is amended by adding at the end the following:
‘‘The Comptroller of the Currency shall have the same authority
over matters within the jurisdiction of the Comptroller as the
Director of the Office of Thrift Supervision has over matters
within the Director’s jurisdiction under section 3(b)(3) of the
Home Owners’ Loan Act. The Secretary of the Treasury may
not delay or prevent the issuance of any rule or the promulga-
tion of any regulation by the Comptroller of the Currency.’’.
(3) SECTION 5239.—Section 5239 of the Revised Statutes
(12 U.S.C. 93) is amended by adding at the end the following
new subsection:
‘‘(d) AUTHORITY.—The Comptroller of the Currency may act
in the Comptroller’s own name and through the Comptroller’s own
attorneys in enforcing any provision of this title, regulations there-
under, or any other law or regulation, or in any action, suit, or
proceeding to which the Comptroller of the Currency is a party.’’.
(c) AMENDMENTS TO THE HOME OWNERS’ LOAN ACT.—Section
3(b) of the Home Owners’ Loan Act (12 U.S.C. 1462a(b)) is
amended—
(1) in paragraph (3), by striking ‘‘unless otherwise provided
by law’’ and inserting ‘‘(including agency enforcement actions)
unless otherwise specifically provided by law’’; and
(2) by adding at the end the following new paragraph:
‘‘(4) BANKING AGENCY RULEMAKING.—The Secretary of the
Treasury may not delay or prevent the issuance of any rule
or the promulgation of any regulation by the Director.’’.
(d) AMENDMENT TO THE FEDERAL RESERVE ACT.—Section 11
of the Federal Reserve Act (12 U.S.C. 248) is amended by adding
at the end the following new subsection:
‘‘(p) AUTHORITY.—The Board may act in its own name and
through its own attorneys in enforcing any provision of this title,
regulations promulgated hereunder, or any other law or regulation,
or in any action, suit, or proceeding to which the Board is a
party and which involves the Board’s regulation or supervision
of any bank, bank holding company (as defined in section 2 of
the Bank Holding Company Act of 1956), or other entity, or the
administration of its operations.’’.
(e) AMENDMENT TO THE FEDERAL DEPOSIT INSURANCE ACT.—
Section 9(a) of the Federal Deposit Insurance Act (12 U.S.C. 1819(a))
is amended in paragraph Fourth, by inserting ‘‘by and through
its own attorneys,’’ after ‘‘complain and defend,’’.
SEC. 332. EXEMPTION FOR BUSINESS ACCOUNTS.
Section 274(1) of the Truth in Savings Act (12 U.S.C. 4313(1))
is amended to read as follows:
H. R. 3474—74
‘‘(1) ACCOUNT.—The term ‘account’ means any account
intended for use by and generally used by consumers primarily
for personal, family, or household purposes that is offered by
a depository institution into which a consumer deposits funds,
including demand accounts, time accounts, negotiable order
of withdrawal accounts, and share draft accounts.’’.
SEC. 333. STUDY ON CHECK-RELATED FRAUD.
(a) STUDY.—The Board of Governors of the Federal Reserve
System (hereafter in this section referred to as the ‘‘Board’’) shall
conduct a study on the advisability of extending the 1-business-
day period specified in section 603(b)(1) of the Expedited Funds
Availability Act, regarding availability of funds deposited by local
checks, to 2 business days.
(b) CONSIDERATIONS.—In conducting the study under subsection
(a), the Board shall consider—
(1) whether there is a pattern of significant increases in
check-related losses at depository institutions attributable to
the provisions of the Expedited Funds Availability Act; and
(2) whether extension of the time period referred to in
subsection (a) is necessary to diminish the volume of any such
check-related losses.
(c) REPORT TO THE CONGRESS.—Not later than 2 years after
the date of enactment of this Act, the Board shall submit a report
to the Congress concerning the results of the study conducted
under this section and including any recommendations for legisla-
tive action.
SEC. 334. INSIDER LENDING.
(a) LOANS TO EXECUTIVE OFFICERS BY MEMBER BANKS.—Section
22(g)(2) of the Federal Reserve Act (12 U.S.C. 375a(2)) is amended
by striking ‘‘With the specific prior approval of its board of directors,
a member’’ and inserting ‘‘A member’’.
(b) EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS,
AND
PRINCIPAL
SHAREHOLDERS
OF
MEMBER
BANKS.—Section
22(h)(8) of the Federal Reserve Act (12 U.S.C. 375b(8)) is amended—
(1) by striking ‘‘MEMBER BANK.—FOR’’ and inserting the
following: ‘‘MEMBER BANK.—
‘‘(A) IN GENERAL.—For’’; and
(2) by adding at the end the following:
‘‘(B) EXCEPTION.—The Board may, by regulation, make
exceptions to subparagraph (A), except as that subpara-
graph makes applicable paragraph (2), for an executive
officer or director of a subsidiary of a company that controls
the member bank, if that executive officer or director does
not have authority to participate, and does not participate,
in major policymaking functions of the member bank.’’.
SEC. 335. REVISIONS OF STANDARDS.
Section 305(b)(1) of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at the end;
(2) in subparagraph (B), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following new subparagraph:
‘‘(C) take into account the size and activities of the
institutions and do not cause undue reporting burdens.’’.
H. R. 3474—75
SEC. 336. ALTERNATIVE RULES FOR RADIO ADVERTISING.
(a) AMENDMENT TO THE TRUTH IN LENDING ACT.—Section 184
of the Truth in Lending Act (15 U.S.C. 1667c) is amended—
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following new
subsection:
‘‘(b) RADIO ADVERTISEMENTS.—
‘‘(1) IN
GENERAL.—An advertisement by radio broadcast
to aid, promote, or assist, directly or indirectly, any consumer
lease shall be deemed to be in compliance with the requirements
of subsection (a) if such advertisement clearly and conspicu-
ously—
‘‘(A) states the information required by paragraphs
(1) and (2) of subsection (a);
‘‘(B) states the number, amounts, due dates or periods
of scheduled payments, and the total of such payments
under the lease;
‘‘(C) includes—
‘‘(i) a referral to—
‘‘(I) a toll-free telephone number established
in accordance with paragraph (2) that may be used
by consumers to obtain the information required
under subsection (a); or
‘‘(II) a written advertisement that—
‘‘(aa) appears in a publication in general
circulation in the community served by the
radio station on which such advertisement is
broadcast during the period beginning 3 days
before any such broadcast and ending 10 days
after such broadcast; and
‘‘(bb) includes the information required to
be disclosed under subsection (a); and
‘‘(ii) the name and dates of any publication referred
to in clause (i)(II); and
‘‘(D) includes any other information which the Board
determines necessary to carry out this chapter.
‘‘(2) ESTABLISHMENT OF TOLL-FREE NUMBER.—
‘‘(A) IN GENERAL.—In the case of a radio broadcast
advertisement described in paragraph (1) that includes a
referral to a toll-free telephone number, the lessor who
offers the consumer lease shall—
‘‘(i) establish such a toll-free telephone number
not later than the date on which the advertisement
including the referral is broadcast;
‘‘(ii) maintain such telephone number for a period
of not less than 10 days, beginning on the date of
any such broadcast; and
‘‘(iii) provide the information required under sub-
section (a) with respect to the lease to any person
who calls such number.
‘‘(B) FORM OF INFORMATION.—The information required
to be provided under subparagraph (A)(iii) shall be provided
verbally or, if requested by the consumer, in written form.
‘‘(3) NO EFFECT ON OTHER LAW.—Nothing in this subsection
shall affect the requirements of Federal law as such require-
ments apply to advertisement by any medium other than radio
broadcast.’’.
H. R. 3474—76
(b) STUDY OF ADVERTISING RULES.—Not later than 365 days
after the date of enactment of this Act, the Board of Governors
of the Federal Reserve System shall submit a report to the Congress
on—
(1) the current rules applicable to credit advertising;
(2) how such rules could be modified to increase consumer
benefit and decrease creditor costs; and
(3) how such rules could be modified, if at all, for radio
advertisements without diminishing consumer protection.
SEC. 337. DEPOSIT BROKER REGISTRATION.
Section 29(g)(3) of the Federal Deposit Insurance Act (12 U.S.C.
1831f(g)(3)) is amended—
(1) by inserting ‘‘that is not well capitalized (as defined
in section 38)’’ after ‘‘includes any insured depository institu-
tion’’;
(2) by striking ‘‘of any insured depository’’ and inserting
‘‘of such’’;
(3) by striking ‘‘(with respect to such deposits)’’; and
(4) by striking ‘‘having the same type of charter’’.
SEC. 338. AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGE-
MENT INTERLOCKS ACT.
(a) MANAGEMENT EXEMPTION.—Section 206 of the Depository
Institution Management Interlocks Act (12 U.S.C. 3205) is
amended—
(1) in subsections (a) and (b), by striking ‘‘15 years after
the date of enactment of this title’’ each place it appears and
inserting ‘‘, subject to the requirements of subsection (c), 20
years after the date of enactment of this title’’; and
(2) by adding at the end the following new subsection:
‘‘(c) REVIEW OF EXISTING MANAGEMENT INTERLOCKS.—Upon the
timely filing of a submission by a person petitioning to serve as
a management official in more than 1 position pursuant to sub-
section (a) or (b), each appropriate Federal depository institutions
regulatory agency shall, not later than 6 months after the date
of enactment of this Act—
‘‘(1) review, on a case-by-case basis, the circumstances
under which such person has served as a management official
under the provisions of subsection (a) or (b); and
‘‘(2) permit the management official to continue to serve
in such position only if—
‘‘(A) such person has provided a resolution from the
boards of directors of each affected depository institution,
depository holding company, or company described in sub-
section (b), certifying to the appropriate Federal depository
institutions regulatory agency for each of the institutions
involved that there is no other qualified candidate from
the community described in paragraph (1) or (2) of section
203 who—
‘‘(i) possesses the level of expertise necessary for
such service with respect to the affected depository
institution, depository holding company, or company
described in subsection (b); and
‘‘(ii) is willing to serve as a management official
at the affected depository institution, depository hold-
ing company, or company described in subsection (b);
and
H. R. 3474—77
‘‘(B) the appropriate Federal depository institutions
regulatory agency determines that continuation of service
by the management official does not produce an anti-
competitive effect with respect to each affected depository
institution, depository holding company, or company
described in subsection (b).’’.
(b) AMENDMENTS TO SECTION 209.—Section 209 of the Deposi-
tory Institution Management Interlocks Act (12 U.S.C. 3207) is
amended—
(1) by striking ‘‘Rules’’ and inserting ‘‘(a) IN GENERAL.—
Rules’’;
(2) by striking ‘‘, including rules or regulations which per-
mit service by a management official which would otherwise
be prohibited by section 203 or section 204,’’; and
(3) by adding at the end the following new subsections:
‘‘(b) REGULATORY STANDARDS.—An appropriate Federal deposi-
tory institution regulatory agency may permit, on a case-by-case
basis, service by a management official which would otherwise
be prohibited by section 203 or 204 only if—
‘‘(1) the board of directors of the affected depository institu-
tion, depository institution holding company, or company
described in section 206(b), provides a resolution to the appro-
priate Federal depository institutions regulatory agency certify-
ing that there is no other candidate from the community
described in paragraph (1) or (2) of section 203 who—
‘‘(A) possesses the level of expertise necessary for such
service with respect to the affected depository institution,
depository institution holding company, or company
described in section 206(b) and is not prohibited from serv-
ice under section 203 or 204; and
‘‘(B) is willing to serve as a management official at
the affected depository institution, depository institution
holding company, or company described in section 206(b);
and
‘‘(2) the appropriate Federal depository institutions regu-
latory agency determines that—
‘‘(A) the management official is critical to the safe
and sound operations of the affected depository institution,
depository institution holding company, or company
described in section 206(b);
‘‘(B) continuation of service by the management official
does not produce an anticompetitive effect with respect
to the affected depository institution, depository institution
holding company, or company described in section 206(b);
and
‘‘(C) the management official meets such additional
requirements as the agency may impose.
‘‘(c) LIMITED EXCEPTION FOR MANAGEMENT OFFICIAL CONSIGN-
MENT PROGRAM.—
‘‘(1) IN
GENERAL.—Notwithstanding the requirements of
subsection (b), an appropriate Federal depository institutions
regulatory agency may establish a program to permit, on a
case-by-case basis, service by a management official which
would otherwise be prohibited by section 203 or 204, for a
period of not more than 2 years, if the agency determines
that such service would—
H. R. 3474—78
‘‘(A) improve the provision of credit to low- and mod-
erate-income areas;
‘‘(B) increase the competitive position of minority- and
woman-owned institutions; or
‘‘(C) strengthen the management of newly chartered
institutions that are in an unsafe or unsound condition.
‘‘(2) EXTENSION OF SERVICE PERIOD.—The appropriate Fed-
eral depository institutions regulatory agency may extend the
2-year period referred to in paragraph (1) for one additional
period of not more than 2 years, subject to making a new
determination described in subparagraphs (A) through (C) of
paragraph (1).’’.
SEC. 339. ADVERSE INFORMATION ABOUT CONSUMERS.
Section 609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is amended by adding at the end the following new
paragraph:
‘‘(4) The dates, original payees, and amounts of any checks
upon which is based any adverse characterization of the
consumer, included in the file at the time of the disclosure.’’.
SEC. 340. SIMPLIFIED DISCLOSURE FOR EXISTING DEPOSITORS.
(a) IN GENERAL.—Section 43(b)(3) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831t(b)(3)) is amended to read as follows:
‘‘(3) ACKNOWLEDGEMENT OF DISCLOSURE.—
‘‘(A) NEW DEPOSITORS.—With respect to any depositor
who was not a depositor at the depository institution before
June 19, 1994, receive any deposit for the account of such
depositor only if the depositor has signed a written
acknowledgement that—
‘‘(i) the institution is not federally insured; and
‘‘(ii) if the institution fails, the Federal Government
does not guarantee that the depositor will get back
the depositor’s money.
‘‘(B) CURRENT DEPOSITORS.—Receive any deposit after
the effective date of this paragraph for the account of
any depositor who was a depositor before June 19, 1994,
only if—
‘‘(i) the depositor has signed a written acknowl-
edgement described in subparagraph (A); or
‘‘(ii) the institution has complied with the provi-
sions of subparagraph (C) which are applicable as of
the date of the deposit.
‘‘(C) ALTERNATIVE PROVISION OF NOTICE TO CURRENT
DEPOSITORS.—
‘‘(i) IN GENERAL.—Transmit to each depositor who
was a depositor before June 19, 1994, and has not
signed a written acknowledgement described in
subparagraph (A)—
‘‘(I) 
a 
card 
containing 
the 
information
described in clauses (i) and (ii) of subparagraph
(A), and a line for the signature of the depositor;
and
‘‘(II) accompanying materials requesting the
depositor to sign the card, and return the signed
card to the institution.
‘‘(ii) MANNER AND TIMING OF NOTICE.—
H. R. 3474—79
‘‘(I) FIRST
NOTICE.—Make the transmission
described in clause (i) via first class mail not later
than September 12, 1994.
‘‘(II) SECOND NOTICE.—Make a second trans-
mission described in clause (i) via first class mail
not less than 30 days and not more than 45 days
after a transmission to the depositor in accordance
with subclause (I), if the institution has not, by
the date of such mailing, received from the deposi-
tor a card referred to in clause (i) which has been
signed by the depositor.
‘‘(III) THIRD
NOTICE.—Make a third trans-
mission described in clause (i) via first class mail
not less than 30 days and not more than 45 days
after a transmission to the depositor in accordance
with subclause (II), if the institution has not, by
the date of such mailing, received from the deposi-
tor a card referred to in clause (i) which has been
signed by the depositor.’’.
(b) EFFECTIVE DATE.—Section 43(b)(3) of the Federal Deposit
Insurance Act, as amended by subsection (a), shall take effect
in accordance with section 151(a)(2)(D) of the Federal Deposit Insur-
ance Corporation Improvement Act of 1991.
SEC. 341. FEASIBILITY STUDY OF DATA BANK.
(a) IN GENERAL.—Not later than 18 months after the date
of enactment of this Act, the Federal Financial Institutions Exam-
ination Council shall—
(1) study the feasibility, including the costs and benefits
to insured depository institutions, of establishing and maintain-
ing a data bank for reports submitted by any depository institu-
tion to a Federal banking agency; and
(2) report the results of such study to the Congress.
(b) ADDITIONAL FACTORS.—The study required under subsection
(a) shall consider the feasibility of—
(1) permitting depository institutions to file reports directly
with the data bank; and
(2) permitting Federal banking agencies, State bank super-
visors, and the public to obtain access to any appropriate report
on file with the data bank which such agency or supervisor
or the public is otherwise authorized to receive.
SEC. 342. TIMELY COMPLETION OF CRA REVIEW.
The comprehensive regulatory review of the Community
Reinvestment Act of 1977 that, as of the date of enactment of
this Act, is being conducted by the Federal banking agencies, shall
be completed at the earliest practicable time.
SEC. 343. TIME LIMIT ON AGENCY CONSIDERATION OF COMPLETED
APPLICATIONS.
(a) IN GENERAL.—Each Federal banking agency shall take final
action on any application to the agency before the end of the
1-year period beginning on the date on which a completed applica-
tion is received by the agency.
(b) WAIVER BY APPLICANT AUTHORIZED.—Any person submitting
an application to a Federal banking agency may waive the
applicability of subsection (a) with respect to such application at
any time.
H. R. 3474—80
SEC. 344. WAIVER OF RIGHT OF RESCISSION FOR CERTAIN REFINANC-
ING TRANSACTIONS.
Not later than 6 months after the date of enactment of this
Act, the Board of Governors of the Federal Reserve System, in
consultation with the consumer advisory council to such Board,
consumers, representatives of consumers, lenders, and other
interested parties, shall submit recommendations to the Congress
regarding whether a waiver or modification, at the option of a
consumer, of the right of rescission under section 125 of the Truth
in Lending Act with respect to transactions which constitute a
refinancing or consolidation (with no new advances) of the principal
balance then due, and any accrued and unpaid finance charges
of an existing extension of credit by a different creditor secured
by an interest in the same property, would benefit consumers.
SEC. 345. CLARIFICATION OF RESPA DISCLOSURE REQUIREMENTS.
Section 6(a)(1)(B) of the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2605(a)(1)(B)) is amended—
(1) by striking ‘‘(B) for each of the most recent’’ and insert-
ing ‘‘(B) at the choice of the person making a federally related
mortgage loan—
‘‘(i) for each of the most recent’’;
(2) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively, and indenting appropriately;
(3) by striking ‘‘and’’ at the end of subclause (II) (as redesig-
nated by paragraph (2)) and inserting ‘‘or’’; and
(4) by inserting after clause (i) (as redesignated by para-
graph (1)) the following new clause:
‘‘(ii) a statement that the person making the loan
has previously assigned, sold, or transferred the servic-
ing of federally related mortgage loans; and’’.
SEC. 346. NOTICE PROCEDURES FOR BANK HOLDING COMPANIES TO
SEEK APPROVAL TO ENGAGE IN CERTAIN ACTIVITIES.
Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C.
1843) is amended—
(1) by adding at the end the following new subsection:
‘‘(j) NOTICE PROCEDURES FOR NONBANKING ACTIVITIES.—
‘‘(1) GENERAL NOTICE PROCEDURE.—
‘‘(A) NOTICE REQUIREMENT.—No bank holding company
may engage in any nonbanking activity or acquire or retain
ownership or control of the shares of a company engaged
in activities based on subsection (c)(8) or (a)(2) without
providing the Board with written notice of the proposed
transaction or activity at least 60 days before the trans-
action or activity is proposed to occur or commence.
‘‘(B) CONTENTS OF NOTICE.—The notice submitted to
the Board shall contain such information as the Board
shall prescribe by regulation or by specific request in
connection with a particular notice.
‘‘(C) PROCEDURE FOR AGENCY ACTION.—
‘‘(i) NOTICE
OF
DISAPPROVAL.—Any notice filed
under this subsection shall be deemed to be approved
by the Board unless, before the end of the 60-day
period beginning on the date the Board receives a
complete notice under subparagraph (A), the Board
H. R. 3474—81
issues an order disapproving the transaction or activity
and setting forth the reasons for disapproval.
‘‘(ii) EXTENSION
OF
PERIOD.—The Board may
extend the 60-day period referred to in clause (i) for
an additional 30 days. The Board may further extend
the period with the agreement of the bank holding
company submitting the notice pursuant to this
subsection.
‘‘(iii) DETERMINATION OF PERIOD IN CASE OF PUBLIC
HEARING.—In the event a hearing is requested or the
Board determines that a hearing is warranted, the
Board may extend the notice period provided in this
subsection for such time as is reasonably necessary
to conduct a hearing and to evaluate the hearing
record. Such extension shall not exceed the 91-day
period beginning on the date that the hearing record
is complete.
‘‘(D) APPROVAL BEFORE END OF PERIOD.—
‘‘(i) IN GENERAL.—Any transaction or activity may
commence before the expiration of any period for dis-
approval established under this paragraph if the Board
issues a written notice of approval.
‘‘(ii) SHORTER PERIODS BY REGULATION.—The Board
may prescribe regulations which provide for a shorter
notice period with respect to particular activities or
transactions.
‘‘(E) EXTENSION OF PERIOD.—In the case of any notice
to engage in, or to acquire or retain ownership or control
of shares of any company engaged in, any activity pursuant
to subsection (c)(8) or (a)(2) that has not been previously
approved by regulation, the Board may extend the notice
period under this subsection for an additional 90 days.
The Board may further extend the period with the agree-
ment of the bank holding company submitting the notice
pursuant to this subsection.
‘‘(2) GENERAL STANDARDS FOR REVIEW.—
‘‘(A) CRITERIA.—In connection with a notice under this
subsection, the Board shall consider whether performance
of the activity by a bank holding company or a subsidiary
of such company can reasonably be expected to produce
benefits to the public, such as greater convenience,
increased competition, or gains in efficiency, that outweigh
possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices.
‘‘(B) GROUNDS FOR DISAPPROVAL.—The Board may deny
any proposed transaction or activity for which notice has
been submitted pursuant to this subsection if the bank
holding company submitting such notice neglects, fails, or
refuses to furnish the Board all the information required
by the Board.
‘‘(C) CONDITIONAL ACTION.—Nothing in this subsection
limits the authority of the Board to impose conditions in
connection with an action under this section.’’; and
(2) in subsection (c), by striking the penultimate sentence.