(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’’.
SEC. 111. CAPITAL EQUIVALENCY DEPOSITS FOR FEDERAL 
BRANCHES 
AND 
AGENCIES 
OF 
FOREIGN 
BANKS. 
Section 4(g) of the International Banking Act of 
1978 (12 U.S.C. 3102(g)) is amended to read as follows: 
‘‘(g) CAPITAL EQUIVALENCY DEPOSIT.—
‘‘(1) IN
GENERAL.—Upon the opening of a 
Federal branch or agency of a foreign bank in any 
State and thereafter, the foreign bank, in addition to 
any deposit requirements imposed under section 6, 
shall keep on deposit, in accordance with such regu-
lations as the Comptroller of the Currency may pre-
scribe in accordance with paragraph (2), dollar de-
posits, investment securities, or other assets in such 
amounts as the Comptroller of the Currency deter-
mines to be necessary for the protection of deposi-
tors and other investors and to be consistent with 
the principles of safety and soundness. 
‘‘(2) LIMITATION.—Notwithstanding paragraph 
(1), regulations prescribed under such paragraph 
shall not permit a foreign bank to keep assets on de-
posit in an amount that is less than the amount re-
quired for a State licensed branch or agency of a 
foreign bank under the laws and regulations of the 
State in which the Federal agency or branch is lo-
cated.’’.
SEC. 112. ENHANCING THE AUTHORITY FOR NATIONAL 
BANKS TO MAKE COMMUNITY DEVELOPMENT 
INVESTMENTS. 
The last sentence in the paragraph designated as the 
‘‘Eleventh.’’ of section 5136 of the Revised Statutes of the 
United States (12 U.S.C. 24) is amended by striking ‘‘10 
percent’’ each place such term appears and inserting ‘‘15 
percent’’. 
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 15 percent of 
the savings association’s capital stock actu-
ally paid in and unimpaired and 15 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 amend-
ed—
(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.’’.