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ance Act) is accepting such deposits and assuming such
obligations in accordance with all applicable Federal and
State laws which relate to the licensing and regulation of
institutions which accept deposits or assume such obliga-
tions.
SEC. 132. FEDERAL RESERVE LENDING.
Before February 1 of each calendar year beginning
after the cross-guarantee activation date, the Board of
Governors of the Federal Reserve System shall submit a
report to the committees of both Houses of the Congress
of the United States having jurisdiction over depository
institutions containing—
(a) a certification that—
(1) no loss was incurred by such Board or
any Federal Reserve Bank during the preceding
calendar year on any loan or other advance to
any guaranteed company during such year; and
(2) no loss is anticipated on any such loan
or advance which remains outstanding at the
end of such year; or
(b) the amount of any such loss or anticipated
loss.
SEC. 
133. 
ADVERTISING 
BY 
GUARANTEED 
FINANCIAL
GROUPS.
(a) ADVERTISING DEPOSIT GUARANTEES.—
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(1) IN GENERAL.—A guaranteed company or
guaranteed banking office may advertise that depos-
its and certain other liabilities are fully guaranteed
against any loss under a cross-guarantee contract
approved by the Corporation.
(2) CROSS-GUARANTEE LOGO.—Before the end
of the 1-year period beginning on the date of the en-
actment of this Act, the Corporation—
(A) shall design, after consultation with
depository institutions, a logotype for use by a
guaranteed company or guaranteed banking of-
fice, which shall include language which states
‘‘This institution is operating under a cross-
guarantee contract approved by the Cross-
Guarantee Regulation Corporation’’; and
(B) authorize guaranteed companies and
guaranteed banking offices to use such logo-
type.
(3) RULES GOVERNING MANNER OF ADVERTIS-
ING.—The Corporation shall prescribe rules govern-
ing the manner in which a guaranteed company or
guaranteed banking office may display any logotype
permitted under this subsection.
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(b) ADVERTISING BACKUP INSURANCE.—A deposi-
tory institution which is guaranteed under a cross-guaran-
tee contract—
(1) shall display at each place of business of the
institution any sign described in section 18(a) of the
Federal Deposit Insurance Act; and
(2) may advertise that deposits at the institu-
tion are insured by the federal government to the
same extent as deposits are insured against loss
under section 11(a) of the Federal Deposit Insur-
ance Act (as in effect on the date before the enact-
ment of this Act).
(c) EQUAL TREATMENT IN ADVERTISING THE FDIC
LOGO.—The rules governing advertising under subsection
(b) shall not provide for different treatment based on
whether or not a depository institution is a guaranteed
depository institution.
SEC. 134. GUARANTEED DEPOSITORY INSTITUTIONS RE-
MAIN FEDERALLY INSURED DEPOSITORIES
FOR PURPOSES OF STATE OR FEDERAL LAW.
Unless a State or party to a contract otherwise pro-
vides subsequent to the passage of this act, a guaranteed
depository institution shall be deemed to be a federally in-
sured depository institution within the meaning of section
3(c)(2) of the Federal Deposit Insurance Act for purposes
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of any State or Federal law or private agreement which
determines the legally acceptable institutions in which to
deposit funds.
Subtitle E—Transition to 100 Percent Cross-
Guarantee Process
SEC. 141. EFFECTIVE DATE OF SYSTEM BASED ON MINI-
MUM NUMBER OF GUARANTEED DEPOSITORY
INSTITUTIONS AND AMOUNT OF TOTAL AS-
SETS.
(a) IN GENERAL.—No cross-guarantee or stop-loss
contract shall take effect before the later of—
(1) the end of the 18-month period beginning
on the date of the enactment of this Act; or
(2) 40 business days after the date on which
the Corporation has approved, under subsection (b),
a minimum of 250 cross-guarantee contracts under
which depository institutions which, in the aggre-
gate, 
have 
total 
assets 
of 
not 
less 
than
$500,000,000,000 are guaranteed companies or
guaranteed banking offices.
(b) CONTINGENT EFFECT OF CONTRACTS UNTIL EF-
FECTIVE DATE.—
(1) IN GENERAL.—The Corporation may condi-
tionally approve a cross-guarantee or stop-loss con-
tract to become effective on the date to be deter-
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mined under subsection (a) even though not all di-
rect guarantors under the contract meet the require-
ments under section 116(a)(1).
(2) MINIMUM REQUIREMENTS.—No cross-guar-
antee or stop-loss contract conditionally approved
under paragraph (1) shall receive final approval
from the Corporation for purposes of subsection
(a)(2) unless—
(A) the cross-guarantee or stop-loss con-
tract is 1 of a set of contracts in which each
contract—
(i) is a contract in the same closed
loop; and
(ii) becomes effective at the same time
every other contract within the set of con-
tracts takes effect; and
(B) at the time such contract becomes ef-
fective, the requirements of section 125(a) are
met.
(c) PUBLICATION
OF CROSS-GUARANTEE ACTIVA-
TION DATE.—The Corporation shall submit for publica-
tion in the Federal Register the date of the cross-guaran-
tee activation date on the day that such date is
ascertained.
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(d) ONE-TIME CONVERSION TO GUARANTEED PARTY
STATUS.—Notwithstanding any provision of section 142,
section 111 shall apply with respect to any depository in-
stitution as of the date—
(1) on which such institution first becomes a
guaranteed depository institution or guaranteed
banking office;
(2) on which any depository institution which is
affiliated with such depository institution becomes a
guaranteed depository institution; or
(3) on which any depository institution which is
under common ownership with such depository insti-
tution under section 112(d)(2) becomes a guaran-
teed depository institution.
SEC. 142. MANDATORY DATE ON WHICH DEPOSITORY INSTI-
TUTIONS MUST BECOME GUARANTEED.
(a) IN GENERAL.—A depository institution may oper-
ate without being a guaranteed depository institution until
the end of a two-year period beginning on the last day
of a calendar quarter in which—
(1) more than 90 percent of the consolidated
assets at book value of all depository institutions are
owned by guaranteed depository institutions; or
(2) more than 90 percent of all depository insti-
tutions are guaranteed depository institutions.
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(b) CONSOLIDATED ASSETS AT BOOK VALUE DE-
FINED.—
(1) IN GENERAL.—The term ‘‘consolidated as-
sets at book value’’ means the total value, as deter-
mined on a consolidated basis and in accordance
with generally accepted accounting principles, of all
tangible and intangible property of any depository
institution, all subsidiaries of such institution, all af-
filiates of such institution which are depository insti-
tutions, and all subsidiaries of such affiliates.
(2) RULES.—The Corporation may issue rules
to further define the term consistent with this sub-
section.
SEC. 143. APPOINTMENT OF RECEIVER FOR INSTITUTIONS
WHICH FAIL TO COMPLY WITH TRANSITION
REQUIREMENTS.
The Federal Deposit Insurance Corporation shall im-
mediately appoint a receiver for any depository institution
which is not a guaranteed depository institution or guar-
anteed banking office under any cross-guarantee contract
as of the date by which such institution is required to be
a guaranteed depository institution or guaranteed banking
office under section 142.
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SEC. 144. FUNDING THE CROSS-GUARANTEE BACKUP FUND.
(a) SEQUENCE OF ACTIONS TO BE TAKEN ON THE
CROSS-GUARANTEE ACTIVATION DATE.—On the cross-
guarantee activation date, the Federal Deposit Insurance
Corporation shall:
(1) MERGE
EXISTING
DEPOSIT
INSURANCE
FUNDS.—Merge the Savings Association Insurance
Fund (established under section 11(a)(6)(A) of the
Federal Deposit Insurance Act) into the Bank In-
surance Fund (established under section 11(a)(5)(A)
of the Federal Deposit Insurance Act) with the
Bank Insurance Fund assuming all of the assets and
liabilities of the Savings Association Insurance
Fund.
(2) ADJUST LOSS RESERVE IN THE BANK IN-
SURANCE FUND.—Subsequent to the merger under
paragraph (1), adjust the Bank Insurance Fund’s
reserve for losses to reflect the present value of the
fund’s expected losses due to depository institutions
that did not become guaranteed depository institu-
tions on the cross-guarantee activation date.
(3) TRANSFER FUNDS TO FICO.—Transfer from
the Bank Insurance Fund to the Financing Corpora-
tion (established under section 21(a) of the Federal
Home Loan Bank Act) such sums as shall be suffi-
cient to carry out the purposes of subsection (c).
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(4) ADJUST DESIGNATED RESERVE RATIO FOR
THE BANK INSURANCE FUND.—After carrying out
the provisions of paragraphs (1) through (3), cal-
culate a designated reserve ratio for the Bank Insur-
ance Fund that shall be used after the cross-guaran-
tee activation date for the purpose of determining
deposit insurance assessments in lieu of the des-
ignated 
reserve 
ratio 
specified 
under 
section
7(b)(2)(A)(iv)(I) of the Federal Deposit Insurance
Act.
(b) ACTIONS SUBSEQUENT TO THE CROSS-GUARAN-
TEE ACTIVATION DATE.—Within 30 days after carrying
out the provisions of subsection (a), the Federal Deposit
Insurance Corporation shall transfer to the cross-guaran-
tee backup fund an amount equal to the product of—
(1) the estimated insured deposits held by de-
pository institutions becoming guaranteed depository
institutions on the cross-guarantee activation date;
and
(2) the ratio calculated under subsection (a)(4).
(c) DEFEASE REMAINING INTEREST PAYABLE ON
FICO BONDS.—
(1) PURCHASE ZERO COUPON INSTRUMENTS.—
The directors of the Financing Corporation (estab-
lished under section 21(a) of the Federal Home
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Loan Bank Act) shall use the funds transferred to
the Financing Corporation under subsection (a)(3)
to purchase noninterest bearing direct obligations of
the United States with face amounts (the amount of
principal payable at maturity) and maturities ap-
proximately equal to the remaining interest due and
payable on obligations issued by the Financing Cor-
poration under section 21(e) of the Federal Home
Loan Bank Act.
(2) TERMINATE
FICO
ASSESSMENT
AUTHOR-
ITY.—Upon purchasing the securities described in
paragraph (1), the Financing Corporation shall
cease making assessments authorized under section
21(f) of the Federal Home Loan Bank Act.
(d) ACTIONS TO BE TAKEN ON EVERY JUNE 30 AND
DECEMBER 31 AFTER THE CROSS-GUARANTEE ACTIVA-
TION DATE.—
(1) ADJUST RESERVES FOR LOSSES.—On every
June 30 and December 31 after the cross-guarantee
activation date, the Federal Deposit Insurance Cor-
poration shall adjust the reserve for losses in the
Bank Insurance Fund to reflect contemporaneous
estimates of the present value of future losses to be
paid from the fund.
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(2) TRANSFER ADDITIONAL FUNDS TO BACKUP
FUND.—Upon making the adjustments described in
paragraph (1), the Federal Deposit Insurance Cor-
poration shall transfer to the cross-guarantee
backup fund an amount equal to the product of—
(A) the estimated insured deposits, as of
the beginning of the six-month period ending on
June 30 or December 31, for all depository in-
stitutions that became guaranteed depository
institutions during such a six-month period;
and
(B) the ratio calculated under subsection
(a)(4).
(e) ACTIONS TO BE TAKEN AFTER THE TRANSITION
PERIOD.—
(1) SEQUENCE OF ACTIONS TO BE TAKEN AT
THE
END
OF
THE
TRANSITION
PERIOD.—Imme-
diately upon the appointment of all receivers under
section 143, the Federal Deposit Insurance Corpora-
tion shall—
(A) adjust the Bank Insurance Fund’s re-
serves for losses to reflect the expenses of wind-
ing up each Federal Deposit Insurance Cor-
poration receivership still open after all receiv-
ers have been appointed under section 143; and
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(B) after making the adjustment described
in subparagraph (A), transfer all funds remain-
ing in the Bank Insurance Fund to the cross-
guarantee backup fund.
(2) ACTIONS TO BE TAKEN AS FDIC RECEIVER-
SHIPS ARE CLOSED OUT.—Upon liquidating all as-
sets and paying all remaining claims and direct and
indirect expenses of a receivership administered by
the Federal Deposit Insurance Corporation, except
the claim of the Federal Deposit Insurance Corpora-
tion, the Federal Deposit Insurance Corporation
shall transfer to the cross-guarantee backup fund all
of the funds remaining in the receivership.
(3) FINAL TRANSFER TO THE CROSS-GUARAN-
TEE
BACKUP
FUND.—After closing out the last
Bank Insurance Fund receivership, the Federal De-
posit Insurance Corporation shall liquidate all of its
remaining assets, transfer all of its remaining funds
to the cross-guarantee backup fund, and then trans-
fer the administration of the fund to the Corpora-
tion.
SEC. 145. ABOLITION OF THE FEDERAL FINANCIAL INSTI-
TUTIONS EXAMINATION COUNCIL.
The Federal Financial Institutions Examination
Council is hereby abolished, effective on the date on which,
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pursuant to section 142, all depository institutions shall
be guaranteed depository institutions.
SEC. 146. ABOLITION OF THE FEDERAL DEPOSIT INSUR-
ANCE CORPORATION.
(a) IN GENERAL.—The Federal Deposit Insurance
Corporation is hereby abolished, effective on the date on
which the last receivership or conservatorship resulting
from the appointment of a receiver or conservator by the
Federal Deposit Insurance Corporation has been liq-
uidated, disposed of, or otherwise resolved.
(b) SAVINGS PROVISIONS RELATED TO THE FDIC.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, privilege, duty, or obli-
gation of the United States, the Federal Deposit In-
surance Corporation, or any other person, which ex-
isted on the day before the date of the enactment of
this Act.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Fed-
eral Deposit Insurance Corporation shall abate by
reason of the enactment of this Act, except that the
Secretary of Treasury shall be substituted for the
Federal Deposit Insurance Corporation as a party to
any such action or proceeding.
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SEC. 147. CONTINUATION OF ORDERS, RESOLUTIONS, AND
DETERMINATIONS.
All orders, resolutions, determinations, and rules
which have been issued, made, prescribed, or allowed prior
to a depository institution becoming a guaranteed deposi-
tory institution shall continue in effect according to the
terms of such orders, resolutions, determinations, and
rules until modified, terminated, set aside, or superseded
in accordance with applicable law by the agency which is-
sued the order, resolution, determination, or rule, by any
court of competent jurisdiction, by operation of this Act,
or by operation of law.
TITLE II—AMENDMENTS TO OTHER
BANKING LAWS
SEC. 201. AMENDMENTS RELATING TO NATIONAL BANKS.
(a) EXEMPTIONS FROM MINIMUM CAPITAL, STOCK,
AND OTHER REQUIREMENTS COVERED BY CROSS-GUAR-
ANTEE CONTRACTS.—
(1) CAPITAL
OF
NATIONAL
BANKS.—Section
5138 of the Revised Statutes of the United States
(12 U.S.C. 51) is amended by adding at the end the
following new sentence: ‘‘This section shall not apply
with respect to any national bank which is a guaran-
teed depository institution (as defined in section
101(a)(7) of the Deposit Insurance Reform, Regu-
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latory Modernization, and Taxpayer Protection Act
of 1996).’’.
(2) PREFERRED STOCK IN MEMBER BANKS.—
Section 345 of the Banking Act of 1935 (12 U.S.C.
51B–1) is amended by adding at the end the follow-
ing new sentence: ‘‘This section shall not apply with
respect to any bank which is a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of 1996).’’.
(3) DEFICIENT
CAPITAL
PROVISION
FOR
NA-
TIONAL BANKS.—Section 5205 of the Revised Stat-
utes of the United States (12 U.S.C. 55) is amended
by adding at the end the following new sentence:
‘‘This section shall not apply with respect to any na-
tional bank which is a guaranteed depository institu-
tion (as defined in section 101(a)(7) of the Deposit
Insurance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996).’’.
(4) WITHDRAWAL OF CAPITAL PROVISION FOR
NATIONAL
BANKS.—Section 5204 of the Revised
Statutes of the United States (12 U.S.C. 56) is
amended by adding at the end the following new
sentence: ‘‘This section shall not apply with respect
to any national bank which is a guaranteed deposi-
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tory institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of 1996).’’.
(5) INCREASE IN CAPITAL PROVISION FOR NA-
TIONAL BANKS.—Section 5142 of the Revised Stat-
utes of the United States (12 U.S.C. 57) is amended
by adding at the end the following new sentence:
‘‘This section shall not apply with respect to any na-
tional bank which is a guaranteed depository institu-
tion (as defined in section 101(a)(7) of the Deposit
Insurance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996).’’.
(6) DECREASE AND DISTRIBUTION OF CAPITAL
PROVISION FOR NATIONAL BANKS.—Section 5143 of
the Revised Statutes of the United States (12
U.S.C. 59) is amended by adding at the end the fol-
lowing new sentence: ‘‘Notwithstanding the preced-
ing sentence, the approval of the Comptroller of the
Currency shall not be required for any reduction of
capital stock, or any distribution to shareholders by
reason of any such reduction, under such sentence
by any national bank which is a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of 1996).’’.
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(7) DIVIDEND PROVISIONS.—
(A) IN GENERAL.—Section 5199(a) of the
Revised Statutes of the United States (12
U.S.C. 60(a)) is amended—
(i) by striking ‘‘(a) The directors’’ and in-
serting:
‘‘(a) DECLARATION OF DIVIDEND.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the directors’’;
(ii) by striking ‘‘expedient; except that
until the surplus fund of such association’’
and inserting ‘‘expedient.
‘‘(2) EXCEPTION FOR CERTAIN UNDERCAPITAL-
IZED ASSOCIATIONS.—Until the surplus fund of a
national bank’’; and
(iii) by adding at the end of para-
graph (2) (as so redesignated by clause (ii)
of this subparagraph) the following: ‘‘This
paragraph shall not apply with respect to
any national bank which is a guaranteed
depository institution (as defined in section
101(a)(7) of the Deposit Insurance Re-
form, Regulatory Modernization, and Tax-
payer Protection Act of 1996).’’.
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(B) TECHNICAL AND CONFORMING AMEND-
MENT.—Section 5199(b) of the Revised Stat-
utes of the United States (12 U.S.C. 60(b)) is
amended—
(i) by striking ‘‘(b) The approval of
the Comptroller’’ and inserting ‘‘(b) AP-
PROVAL OF THE COMPTROLLER.—Except
in the case of a national bank which is a
guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit
Insurance Reform, Regulatory Moderniza-
tion, and Taxpayer Protection Act of
1996), the approval of the Comptroller’’;
and
(ii) by striking ‘‘such association’’ and
inserting ‘‘a national bank’’.
(b) EXEMPTIONS FROM REQUIREMENTS RELATING
TO DIRECTORS OF BANKS.—
(1) QUALIFICATIONS OF NATIONAL BANK DI-
RECTORS.—Section 5146 of the Revised Statutes of
the United States (12 U.S.C. 72) is amended by
adding at the end the following new sentence: ‘‘This
section shall not apply with respect to any national
bank which is a guaranteed depository institution
(as defined in section 101(a)(7) of the Deposit In-
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surance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996).’’.
(2) SERVICE
OF
PRESIDENT
OF
NATIONAL
BANK AS CHAIRMAN OF THE BANK’S BOARD OF DI-
RECTORS.—Section 5150 of the Revised Statutes of
the United States (12 U.S.C. 76) is amended by
adding at the end the following new sentence: ‘‘This
section shall not apply with respect to any national
bank which is a guaranteed depository institution
(as defined in section 101(a)(7) of the Deposit In-
surance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996).’’.
(3) MEMBER
BANK
DIRECTOR
INTERLOCKS
WITH SECURITIES FIRMS.—Section 32 of the Bank-
ing Act of 1933 (12 U.S.C. 78) is amended by add-
ing at the end the following new sentence: ‘‘This sec-
tion shall not apply with respect to any member
bank which is a guaranteed depository institution
(as defined in section 101(a)(7) of the Deposit In-
surance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996).’’.
(4) LOANS
ON
OR
PURCHASE
OF
NATIONAL
BANK’S OWN STOCK.—Section 5201 of the Revised
Statutes of the United States (12 U.S.C. 83) is
amended by adding at the end the following new
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sentence: ‘‘This section shall not apply with respect
to any national bank which is a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of 1996).’’.
(c) EXEMPTION FROM REQUIREMENT RELATING TO
LOANS TO ONE BORROWER.—Section 5200 of the Revised
Statutes of the United States (12 U.S.C. 84) is amended
by adding at the end the following new subsection:
‘‘(e) EXEMPTION OF GUARANTEED COMPANIES.—
This section shall not apply with respect to any national
bank which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance Re-
form, Regulatory Modernization, and Taxpayer Protection
Act of 1996).’’.
(d) EXEMPTION FROM REQUIREMENTS RELATING
TO SECURITY FOR DEPOSITS OF GOVERNMENT AGENCIES
AT NATIONAL BANKS.—Section 5153 of the Revised Stat-
utes of the United States (12 U.S.C. 90) is amended—
(1) in the 1st undesignated paragraph, by strik-
ing ‘‘All national banking associations’’ and insert-
ing ‘‘(a) IN GENERAL.—All national banks’’;
(2) in the 2nd undesignated paragraph, by
striking ‘‘Any national banking association’’ and in-
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serting ‘‘(b) DEPOSITORY FOR STATE AND LOCAL
GOVERNMENTS.—Any national bank’’;
(3) in the 3rd undesignated paragraph, by
striking ‘‘Any national banking association’’ and in-
serting ‘‘(c) DEPOSITORY
FOR INDIAN TRIBES.—
Any national bank’’; and
(4) by adding at the end the following new sub-
section:
‘‘(d) EXEMPTION FROM SECURITY AND COLLATERAL
REQUIREMENTS.—A national bank which is a guaranteed
depository institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Modernization,
and Taxpayer Protection Act of 1996) shall not be re-
quired to give any security which is otherwise required
under subsection (a), (b), or (c) for deposits with the bank
under this section or for the performance of the bank as
financial agent.’’.
(e) EXEMPTION FROM PROVISION RELATING
TO
TRANSFERS BY NATIONAL BANKS IN CONTEMPLATION OF
INSOLVENCY.—Section 5242 of the Revised Statutes of
the United States (12 U.S.C. 91) is amended by adding
at the end the following new sentence: ‘‘This section shall
not apply with respect to any national bank which is a
guaranteed depository institution (as defined in section
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101(a)(7) of the Deposit Insurance Reform, Regulatory
Modernization, and Taxpayer Protection Act of 1996.)’’.
(f) EXEMPTION FROM REQUIREMENTS RELATING TO
REPORTS OF CONDITION.—Section 5211 of the Revised
Statutes of the United States (12 U.S.C. 161) is amended
by adding at the end the following new subsection:
‘‘(d) EXEMPTION OF GUARANTEED COMPANIES.—
This section shall not apply with respect to any national
bank which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance Re-
form, Regulatory Modernization, and Taxpayer Protection
Act of 1996.)’’.
(g) CONSENT OF GUARANTORS REQUIRED FOR VOL-
UNTARY DISSOLUTION.—
(1) IN GENERAL.—Section 5220 of the Revised
Statutes of the United States (12 U.S.C. 181) is
amended—
(A) in the 1st undesignated paragraph, by
striking ‘‘Any association’’ and inserting ‘‘(a)
IN GENERAL.—Any national bank’’;
(B) in the 2nd undesignated paragraph, by
striking ‘‘The shareholders shall designate’’ and
inserting ‘‘(b) LIQUIDATING AGENT OR COM-
MITTEE.—The shareholders shall designate’’;
and
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(C) by adding at the end the following new
subsection:
‘‘(c) CONSENT
OF GUARANTORS REQUIRED
FOR
GUARANTEED COMPANIES.—In the case of any national
bank which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance Re-
form, Regulatory Modernization, and Taxpayer Protection
Act of 1996), the national bank may go into liquidation
and be closed in accordance with subsection (a) only with
the consent of the direct guarantors of such bank.’’.
(2) NOTICE
TO SYNDICATE AGENT.—Section
5221 of the Revised Statutes of the United States
(12 U.S.C. 182) is amended by inserting ‘‘and, in
the case of a national bank which is a guaranteed
depository 
institution 
(as 
defined 
in 
section
101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act
of 1996), to the syndicate agent of such bank’’ after
‘‘Comptroller of the Currency’’.
(h) COMPTROLLER OF THE CURRENCY NOT AUTHOR-
IZED TO APPOINT RECEIVER.—
(1) IN GENERAL.—The Act entitled ‘‘An Act
authorizing the appointment of receivers of national
banking associations, and for other purposes.’’ and
approved June 30, 1876, is amended by inserting
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after the 1st section (12 U.S.C. 191) the following
new section:
‘‘SEC. 2. EXEMPTION OF GUARANTEED NATIONAL BANKS.
‘‘This Act shall not apply with respect to any national
bank which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance Re-
form, Regulatory Modernization, and Taxpayer Protection
Act of 1996).’’.
(2) EXEMPTION
FROM
ADDITIONAL
GROUND
FOR
THE
APPOINTMENT
OF
RECEIVERS.—Section
5234 of the Revised Statutes (12 U.S.C. 192) is
amended by adding at the end the following new
sentence: ‘‘This sentence shall not apply with respect
to any national bank which is a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of 1996).’’.
(i) COMPTROLLER OF THE CURRENCY NOT AUTHOR-
IZED TO APPOINT CONSERVATOR.—The Bank Conserva-
tion Act is amended by inserting after section 206 the fol-
lowing new section:
‘‘SEC. 207. EXEMPTION OF GUARANTEED NATIONAL BANKS.
‘‘This subchapter shall not apply with respect to any
national bank which is a guaranteed depository institution
(as defined in section 101(a)(7) of the Deposit Insurance
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Reform, Regulatory Modernization, and Taxpayer Protec-
tion Act of 1996).’’.
(j) COMPTROLLER OF THE CURRENCY NOT AUTHOR-
IZED TO EXAMINE GUARANTEED BANKS.—Section 5240
of the Revised Statutes of the United States (12 U.S.C.
481—485) is amended by adding at the end of the 1st
paragraph of such section the following new sentence:
‘‘Notwithstanding any other provision of this section, the
authority of the Comptroller of the Currency to examine
any national bank or any affiliate of a national bank shall
not apply with respect to any national bank which is a
guaranteed depository institution (as defined in section
101(a)(7) of the Deposit Insurance Reform, Regulatory
Modernization, and Taxpayer Protection Act of 1996) or
any affiliate of such bank.’’.
(k) EXEMPTION FROM LIMITATION OR CONDITIONS
ON REAL ESTATE LENDING AUTHORITY.—Section 24(a)
of the Federal Reserve Act (12 U.S.C. 371(a)) is amended
by adding at the end the following new sentence: ‘‘Not-
withstanding the preceding sentence, a national bank
which is a guaranteed depository institution (as defined
in section 101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Protection Act
of 1996) shall not be subject to section 18(o) of the Fed-
eral Deposit Insurance Act or any restriction or require-
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ment prescribed by the Comptroller of the Currency under
the preceding sentence.’’.
SEC. 202. AMENDMENTS RELATING TO MEMBER BANKS.
(a) FEDERAL RESERVE BOARD AND FEDERAL RE-
SERVE BANKS NOT AUTHORIZED TO EXAMINE GUARAN-
TEED MEMBER BANKS.—
(1) IN GENERAL.—Section 11(a)(1) of the Fed-
eral Reserve Act (12 U.S.C. 248(a)(1)) is amended
by adding at the end the following new sentence:
‘‘Notwithstanding any other provision of this section,
the authority of the Board or any Federal reserve
bank to examine any member bank shall not apply
with respect to any member bank which is a guaran-
teed depository institution (as defined in section
101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act
of 1996).’’.
(2) SPECIAL EXAMINATIONS.—The 1st sentence
of the 5th undesignated paragraph of section 5240
of the Revised Statutes of the United States (12
U.S.C. 483) is amended by inserting ‘‘which are not
guaranteed depository institutions (as defined in sec-
tion 101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Protection
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Act of 1996)’’ after ‘‘member banks within its dis-
trict’’.
(3) FOREIGN OPERATION OF STATE MEMBER
BANKS.—The last sentence of the 6th undesignated
paragraph of section 5240 of the Revised Statutes of
the United States (12 U.S.C. 481) is amended by
inserting ‘‘and are not guaranteed depository institu-
tions (as defined in section 101(a)(7) of the Deposit
Insurance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996)’’ before the pe-
riod.
(4) EXAMINATIONS IN CONNECTION WITH AD-
VANCES OR DISCOUNTS.—Section 11(n) of the Fed-
eral Reserve Act (12 U.S.C. 248(n)) is amended by
striking ‘‘depository institution,’’ and inserting ‘‘de-
pository institution (other than a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of 1996)),’’.
(b) EXEMPTION FROM MEMBER BANK LOAN LIMI-
TATIONS.—Section 11(m) of the Federal Reserve Act (12
U.S.C. 248(m)) is amended by adding at the end the fol-
lowing new sentence: ‘‘This paragraph shall not apply with
respect to any member bank which is a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of the De-
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posit Insurance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996).’’.
(c) EXEMPTION FROM LIMITATION ON ACCESS TO
FED WIRE.—Section 11 of the Federal Reserve Act (12
U.S.C. 248) is amended by inserting after paragraph (n)
the following new paragraph:
‘‘(o) PROHIBITION ON LIMITS ON ACCESS TO PAY-
MENT AND CLEARING SYSTEMS BY GUARANTEED MEM-
BER BANKS.—Notwithstanding any other provision of law,
the Board may not limit or deny access by any member
bank which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance Re-
form, Regulatory Modernization, and Taxpayer Protection
Act of 1996) to the payment system or any system in ef-
fect for clearing transactions in securities for the purpose
of protecting any such system from any risk.’’.
(d) FEDERAL RESERVE BOARD NOT AUTHORIZED
TO
APPOINT
CONSERVATOR
OR
RECEIVER.—Section
11(p) of the Federal Reserve Act (12 U.S.C. 248(p)) (as
added by section 133(f) of the Federal Deposit Insurance
Corporation Act of 1991) is amended to read as follows:
‘‘(p) AUTHORITY TO APPOINT CONSERVATOR OR RE-
CEIVER.—
‘‘(A) IN GENERAL.—Except as provided in sub-
paragraph (B), the Board may appoint the Federal
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Deposit Insurance Corporation as conservator or re-
ceiver for a State member bank under section
11(c)(8) of the Federal Deposit Insurance Act.
‘‘(B) EXCEPTION
FOR
GUARANTEED
DEPOSI-
TORY
INSTITUTIONS.—This paragraph shall not
apply with respect to any member bank which is a
guaranteed depository institution (as defined in sec-
tion 101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Protection
Act of 1996).’’.
(e) QUALIFICATION OF GUARANTEED STATE BANKS
FOR MEMBER BANK STATUS WITHOUT APPLICATION.—
(1) IN GENERAL.—The 1st undesignated para-
graph of section 9 of the Federal Reserve Act (12
U.S.C. 321) is amended by adding at the end the
following new sentence: ‘‘Notwithstanding the appli-
cation requirement contained in the 1st sentence of
this paragraph, any State bank which is a guaran-
teed depository institution (as defined in section
101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act
of 1996) may become a member of the Federal Re-
serve System without application by agreeing to be
subject to all applicable provisions of this Act and by
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subscribing to stock in the same manner and
amount as a national bank under section 2.’’.
(2) EXEMPTION FROM CAPITAL, RESERVE, AND
REPORTING REQUIREMENTS.—The 1st sentence of
the 6th undesignated paragraph of section 9 of the
Federal Reserve Act (12 U.S.C. 324) is amended by
inserting ‘‘, other than a bank which is a guaranteed
depository 
institution 
(as 
defined 
in 
section
101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act
of 1996),’’ after ‘‘banks admitted to membership
under authority of this section’’.
(3) EXEMPTION FROM EXAMINATION.—The 7th
undesignated paragraph of section 9 of the Federal
Reserve Act (12 U.S.C. 325) is amended by striking
‘‘such banks’’ and inserting ‘‘, any bank admitted to
membership under this section, other than a bank
which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance
Reform, Regulatory Modernization, and Taxpayer
Protection Act of 1996),’’.
(4) EXEMPTION
FROM
SPECIAL
EXAMINA-
TIONS.—The 8th undesignated paragraph of section
9 of the Federal Reserve Act (12 U.S.C. 326) is
amended by adding at the end the following new
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sentence: ‘‘Notwithstanding any other provision of
this paragraph, the authority of the Board to exam-
ine any member bank shall not apply with respect to
any member bank which is a guaranteed depository
institution (as defined in section 101(a)(7) of the
Deposit Insurance Reform, Regulatory Moderniza-
tion, and Taxpayer Protection Act of 1996).’’.
(5) EXEMPTION
FROM
CERTAIN
FORFEITURE
PROVISION.—The 9th undesignated paragraph of
section 9 of the Federal Reserve Act (12 U.S.C.
327) is amended by inserting ‘‘, other than a bank
which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance
Reform, Regulatory Modernization, and Taxpayer
Protection Act of 1996),’’ after ‘‘a member bank’’.
(6) EXEMPTION
FROM
ADDITIONAL
CAPITAL
REQUIREMENT.—The 11th undesignated paragraph
of section 9 of the Federal Reserve Act (12 U.S.C.
329) is amended by adding at the end the following
new sentence: ‘‘This paragraph shall not apply with
respect to any member bank which is a guaranteed
depository 
institution 
(as 
defined 
in 
section
101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act
of 1996).’’.
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(7) EXEMPTION FROM SECURITY AND COLLAT-
ERAL REQUIREMENT.—The last sentence of the 15th
undesignated paragraph of section 9 of the Federal
Reserve Act (12 U.S.C. 332) is amended by insert-
ing ‘‘, other than a bank which a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of
the Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of 1996),’’
after ‘‘the banks and trust companies thus des-
ignated’’.
(8) MEMBERSHIP QUALIFICATION IN THE CASE
OF STATE MUTUAL SAVINGS BANKS.—The 16th un-
designated paragraph of section 9 of the Federal Re-
serve Act (12 U.S.C. 333) is amended by inserting
after the 1st sentence the following new sentence:
‘‘Notwithstanding the application requirement con-
tained in the preceding sentence, any State mutual
savings bank which is a guaranteed depository insti-
tution (as defined in section 101(a)(7) of the De-
posit Insurance Reform, Regulatory Modernization,
and Taxpayer Protection Act of 1996) may become
a member of the Federal Reserve System without
application by agreeing to be subject to all applicable
provisions of this Act and by subscribing to stock
in the same manner and amount as provided in this
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paragraph for State mutual savings banks applying
for membership.’’
(9) EXEMPTION FROM AFFILIATE REPORTING
REQUIREMENTS.—
(A) IN GENERAL.—The 1st sentence of the
17th undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 334) is
amended by inserting ‘‘, other than a bank
which is a guaranteed depository institution (as
defined in section 101(a)(7) of the Deposit In-
surance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996),’’ after ‘‘bank
admitted to membership under this section’’.
(B) EXEMPTION FROM ADDITIONAL AFFIL-
IATE
REPORTING
REQUIREMENTS.—The 18th
undesignated paragraph of section 9 of the
Federal Reserve Act (12 U.S.C. 334) is amend-
ed by inserting ‘‘, other than a bank which is
a guaranteed depository institution (as defined
in section 101(a)(7) of the Deposit Insurance
Reform, Regulatory Modernization, and Tax-
payer Protection Act of 1996),’’ after ‘‘affili-
ated member bank’’.
(10) EXEMPTION
FROM
EXAMINATION
RE-
QUIREMENTS.—The 22d undesignated paragraph of
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section 9 of the Federal Reserve Act (12 U.S.C.
338) is amended by inserting ‘‘, other than a bank
which is a guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance
Reform, Regulatory Modernization, and Taxpayer
Protection Act of 1996),’’ after ‘‘State member
banks’’ the 1st place such term appears.
(f) EXEMPTION FROM INTEREST REQUIREMENTS.—
Section 19(i) of the Federal Reserve Act (12 U.S.C. 371a)
is amended by adding at the end the following new sen-
tence: ‘‘No provision of this subsection shall apply with
respect to a member bank which is a guaranteed deposi-
tory institution (as defined in section 101(a)(7) of the De-
posit Insurance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996).’’.
(g) EXEMPTION FROM REQUIREMENTS RELATING
TO INTERBANK LIABILITIES AND TRANSACTIONS WITH
AFFILIATES.—
(1) INTERBANK
LIABILITIES.—Section 23 of
the Federal Reserve Act (12 U.S.C. 371(b–2)) is
amended by adding at the end the following new
subsection:
‘‘(f) EXEMPTION FOR GUARANTEED DEPOSITORY IN-
STITUTIONS.—A guaranteed depository institution (as de-
fined in section 101(a)(7) of the Deposit Insurance Re-
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form, Regulatory Modernization, and Taxpayer Protection
Act of 1996) shall not be subject to any regulation or
order issued under this section.’’.
(2) 
EXEMPTION
FROM
RESTRICTIONS
ON
TRANSACTIONS
WITH
AFFILIATES.—Sections 23A
and 23B of the Federal Reserve Act (12 U.S.C.
371c, 371c–1) are each amended by adding at the
end of each such section the following new sub-
section:
‘‘(f) EXEMPTION FOR GUARANTEED DEPOSITORY IN-
STITUTIONS.—This section shall not apply to any guaran-
teed depository institution (as defined in section 101(a)(7)
of the Deposit Insurance Reform, Regulatory Moderniza-
tion, and Taxpayer Protection Act of 1996) or any affili-
ate of any such institution that is a guaranteed company
(as defined in section 101(a)(6) of the Deposit Insurance
Reform, Regulatory Modernization, and Taxpayer Protec-
tion Act of 1996).’’.
(h) EXEMPTION FROM LIMITATION
ON INVEST-
MENTS IN, OR LOANS ON, BANK PREMISES.—Section 24A
of the Federal Reserve Act (12 U.S.C. 371d) is amended
by adding at the end the following new sentence: ‘‘This
section shall not apply to any guaranteed depository insti-
tution (as defined in section 101(a)(7) of the Deposit In-
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surance Reform, Regulatory Modernization, and Taxpayer
Protection Act of 1996).’’.
(i) EXEMPTION FROM LIMITATIONS ON BANKERS’
ACCEPTANCES.—Section 13(7) of the Federal Reserve Act
(12 U.S.C. 372) is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(I) EXEMPTION
FROM
LIMITATIONS
FOR
GUARANTEED
DEPOSITORY
INSTITUTIONS.—
Subparagraphs (B), (C), (D), (E), (F), and (H)
shall not apply to any guaranteed depository in-
stitution (as defined in section 101(a)(7) of the
Deposit Insurance Reform, Regulatory Mod-
ernization, and Taxpayer Protection Act of
1996).’’
(j) EXEMPTION FROM PURCHASING AND LENDING
LIMITS RELATING TO DIRECTORS AND OFFICERS.—Sec-
tion 22 of the Federal Reserve Act (12 U.S.C. 375, 376,
503, 375a, and 375b) is amended by inserting before sub-
section (d) the following new subsection:
‘‘(c) EXEMPTION FOR GUARANTEED DEPOSITORY IN-
STITUTIONS.—Subsections (d), (e), (g), and (h) shall not
apply to any guaranteed depository institution (as defined
in section 101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Protection Act
of 1996) or any affiliate of any such institution.’’.
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SEC. 203. AMENDMENTS RELATING TO SAVINGS ASSOCIA-
TIONS.
(a) 
GUARANTEED
SAVINGS
ASSOCIATION
DE-
FINED.—Section 2 of the Home Owners’ Loan Act (12
U.S.C. 1462) is amended by adding at the end the follow-
ing new paragraphs:
‘‘(10) GUARANTEED
SAVINGS
ASSOCIATION.—
The term ‘guaranteed savings association’ means a
savings association which is a guaranteed depository
institution (as defined in section 101(a)(7) of the
Deposit Insurance Reform, Regulatory Moderniza-
tion, and Taxpayer Protection Act of 1996).
‘‘(11) GUARANTEED FEDERAL SAVINGS ASSO-
CIATION.—The term ‘guaranteed Federal savings as-
sociation’ means a Federal savings association which
is a guaranteed depository institution (as defined in
section 101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Protection
Act of 1996).’’.
(b) EXEMPTION FROM EXAMINATION AND REGULA-
TION BY DIRECTOR OF THE OFFICE OF THRIFT SUPER-
VISION.—
(1) IN GENERAL.—Section 4(a) of the Home
Owners’ Loan Act (12 U.S.C. 1463(a)) is amended
by adding at the end the following new paragraph:
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‘‘(4) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—‘‘The authority of the Director
under this subsection or subsection (b) or (c) to ex-
amine any savings association or prescribe regula-
tions applicable to savings associations shall not
apply with respect to any guaranteed savings asso-
ciation.’’.
(2) FEDERAL SAVINGS ASSOCIATIONS.—Section
5(a) of the Home Owners’ Loan Act (12 U.S.C.
1464(a)) is amended by adding at the end the fol-
lowing new sentence: ‘‘The authority of the Director
under the preceding sentence to prescribe regula-
tions to provide for the examination and regulation
of Federal savings associations shall not apply with
respect to the examination or regulation of any
guaranteed Federal savings association.’’.
(3) EXEMPTION FROM EXAMINATION FEE PRO-
VISIONS.—Section 9 of the Home Owners’ Loan Act
(12 U.S.C. 1467) is amended by adding at the end
the following new subsection:
‘‘(n) EXEMPTION FOR GUARANTEED SAVINGS ASSO-
CIATIONS.—This section and the authority of the Director
under this section shall not apply with respect to any guar-
anteed savings association.’’.
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(c) EXCEPTIONS TO LIMITATIONS ON DEPOSIT AND
RELATED POWERS.—Section 5(b)(1) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(b)(1)) is amended by add-
ing at the end the following new subparagraph:
‘‘(G) SPECIAL RULES APPLICABLE TO GUARAN-
TEED SAVINGS ASSOCIATIONS.—
‘‘(i) STATUTORY AUTHORITY.—A guaran-
teed Federal savings association shall have the
powers described in subparagraphs (C), (E),
and (F) without regard to the condition or limi-
tation contained in each such subparagraph re-
lating to regulations of the Director.
‘‘(ii) LIMITATION
ON
REGULATORY
AU-
THORITY.—The exercise by a guaranteed Fed-
eral savings association of powers established
under subparagraph (A) or (D) or the last sen-
tence of subparagraph (B) shall not be subject
to any regulations prescribed by the Director
under such provision.
‘‘(iii) EXEMPTION.—A guaranteed Federal
savings association shall not be subject to the
1st sentence of subparagraph (B).’’.
(d) EXCEPTIONS TO LIMITATIONS ON LOAN AND IN-
VESTMENT POWERS.—Section 5(c) of the Home Owners’
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Loan Act (12 U.S.C. 1464(c)) is amended by adding at
the end the following new paragraph:
‘‘(7) EXCEPTIONS FOR GUARANTEED SAVINGS
ASSOCIATIONS.—
‘‘(A) LIMITATION
ON
REGULATORY
AU-
THORITY.—The exercise by a guaranteed Fed-
eral savings association of powers established
under any provision of this subsection shall not
be subject to any regulations prescribed by the
Director under this subsection.
‘‘(B) 
EXEMPTION
FROM
MAXIMUM
AMOUNT LIMITATIONS.—A guaranteed Federal
savings association shall not be subject to any
limitation in this subsection on the outstanding
amount of loans or investments by the associa-
tion under any provision of this subsection,
without regard to whether such maximum
amount is expressed as a fixed dollar amount or
as a percentage of such association’s assets or
capital.’’.
(e) 
EXEMPTION
FROM
ENFORCEMENT
AND
CONSERVATORSHIP
AND RECEIVERSHIP PROVISIONS.—
Section 5(d) of the Home Owners’ Loan Act (12 U.S.C.
1464(d)) is amended by adding at the end the following
new paragraph:
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‘‘(7) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection and the authority
of the Director under this subsection shall not apply
with respect to any guaranteed savings association.’’.
(f) EXEMPTION FROM FITNESS STANDARDS.—Sec-
tion 5(e) of the Home Owners’ Loan Act (12 U.S.C.
1464(e)) is amended by adding at the end the following
new sentence:
‘‘The preceding sentence shall not apply with respect to
any savings association which, at the time the charter is
granted, is a guaranteed depository institution (as defined
in section 101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Protection Act
of 1996) or is required to be a guaranteed depository insti-
tution before such association accepts any deposit.’’.
(g) EXEMPTION FROM REQUIREMENTS RELATING
TO SECURITY FOR DEPOSITS OF GOVERNMENT AGEN-
CIES.—Section 5(k) of the Home Owners’ Loan Act (12
U.S.C. 1464(k)) is amended by adding at the end the fol-
lowing new sentence: ‘‘A guaranteed savings association
shall not be required to give any security for deposits with
the savings association under this section or for the per-
formance of the association as fiscal agent.’’.
(h) EXEMPTION FROM MINIMUM CAPITAL REQUIRE-
MENTS.—Section 5(s) of the Home Owners’ Loan Act (12
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HR 4318 IH
U.S.C. 1464(s)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(6) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection and the authority
of the Director under this subsection shall not apply
with respect to any guaranteed savings association.’’.
(i) EXEMPTION FROM CAPITAL STANDARDS.—Sec-
tion 5(t)(1) of the Home Owners’ Loan Act (12 U.S.C.
1464(t)(1)) is amended by adding at the end the following
new subparagraph:
‘‘(E) EXEMPTION FOR GUARANTEED SAVINGS
ASSOCIATIONS.—This subsection and the authority
of the Director under this subsection shall not apply
with respect to any guaranteed savings association.’’.
(j) EXEMPTION FROM REQUIREMENT RELATING TO
LOANS TO ONE BORROWER.—Section 5(u) of the Home
Owners’ Loan Act (12 U.S.C. 1464(u)) is amended by
adding at the end the following new paragraph:
‘‘(4) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection shall not apply with
respect to any guaranteed savings association.’’.
(k) EXEMPTION FROM REQUIREMENT RELATING TO
REPORTS
OF CONDITION.—Section 5(v) of the Home
Owners’ Loan Act (12 U.S.C. 1464(v)) is amended by
adding at the end the following new paragraph:
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‘‘(9) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection shall not apply with
respect to any guaranteed savings association.’’.
(l) EXEMPTION FROM REQUIREMENT RELATING TO
LIQUID ASSETS.—Section 6 of the Home Owners’ Loan
Act (12 U.S.C. 1465) is amended by adding at the end
the following new subsection:
‘‘(g) EXEMPTION FOR GUARANTEED SAVINGS ASSO-
CIATIONS.—This section shall not apply with respect to
any guaranteed savings associations.’’.
(m) EXEMPTION FROM AFFILIATE TRANSACTION
AND LENDING LIMITS RELATING TO DIRECTORS AND OF-
FICERS.—Section 11 of the Home Owners’ Loan Act (12
U.S.C. 1468) is amended by adding at the end the follow-
ing new subsection:
‘‘(d) EXEMPTION FOR GUARANTEED SAVINGS ASSO-
CIATIONS.—This section shall not apply with respect to
any guaranteed savings association.’’.
SEC. 204. AMENDMENTS RELATING TO SAVINGS AND LOAN
HOLDING COMPANIES.
(a) 
GUARANTEED
SAVINGS
ASSOCIATION
DE-
FINED.—Section 10(a)(1) of the Home Owners’ Loan Act
(12 U.S.C. 1467a(a)(1)) is amended by adding at the end
the following new subparagraph:
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‘‘(K) 
GUARANTEED
SAVINGS
ASSOCIA-
TION.—The term ‘guaranteed savings associa-
tion’ includes any savings association referred
to in subparagraph (A) which is a guaranteed
depository institution (as defined in section
101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Pro-
tection Act of 1996).’’.
(b) EXEMPTION FROM EXAMINATION AND REPORT-
ING REQUIREMENT.—Section 10(b) of the Home Owners’
Loan Act (12 U.S.C. 1467a(b)) is amended by adding at
the end the following new paragraph:
‘‘(7) EXEMPTION FOR S&L HOLDING COMPANY
WHICH CONTROLS A GUARANTEED SAVINGS ASSOCIA-
TION.—Paragraphs (2), (3), and (4) and the author-
ity of the Director under any such paragraph shall
not apply with respect to any savings and loan hold-
ing company which controls a guaranteed savings as-
sociation and any subsidiary of such company.’’.
(c) COORDINATION
WITH
SECTION
11.—Section
10(d) of the Home Owners’ Loan Act (12 U.S.C.
1467a(d)) is amended by striking ‘‘Transaction’’ and in-
serting ‘‘Subject to section 11(d), transactions’’.
(d) EXEMPTION FROM REQUIREMENTS RELATING
TO DECLARATION OF DIVIDEND.—Section 10(f) of the
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Home Owners’ Loan Act (12 U.S.C. 1467a(f)) is amended
by adding at the end the following new sentence: ‘‘This
subsection shall not apply with respect to any savings and
loan company which controls a guaranteed savings asso-
ciation.’’.
(e) EXEMPTION FROM RESTRICTIONS ON HIGH-RISK
ACTIVITIES.—Section 10(p) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(p)) is amended by adding at the
end the following new paragraph:
‘‘(3) EXEMPTION
FOR
PARENT
OF
GUARAN-
TEED SAVINGS ASSOCIATION.—This subsection shall
not apply with respect to any savings and loan com-
pany which controls a guaranteed savings associa-
tion.’’.
(f) NONAPPLICABILITY OF QUALIFIED STOCK ISSU-
ANCE PROVISIONS.—Section 10(q)(1)(A) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(q)(1)(A)) is amend-
ed—
(1) in clause (i), by inserting ‘‘which is not a
guaranteed savings association’’ after ‘‘undercapital-
ized savings association’’; and
(2) in clause (ii), by inserting ‘‘and does not
control a guaranteed savings association’’ after
‘‘controls an undercapitalized savings association’’.
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SEC. 205. AMENDMENTS RELATING TO THE FEDERAL DE-
POSIT INSURANCE CORPORATION.
(a) AMENDMENTS TO DEFINITIONS.—
(1) DEFINITIONS
RELATING
TO
DEPOSITORY
INSTITUTIONS.—Section 3(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(c)) is amended by
adding at the end the following new paragraphs:
‘‘(6) GUARANTEED
DEPOSITORY
INSTITUTION
NOT
INCLUDED.—Except as otherwise specifically
provided in any provision of this Act, the terms ‘de-
pository institution’ and ‘insured depository institu-
tion’ do not include any guaranteed depository insti-
tution.
‘‘(7) 
GUARANTEED
DEPOSITORY
INSTITU-
TION.—The term ‘guaranteed depository institution’
has the meaning given to such term in section
101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act
of 1996.’’.
(2) DEFINITION RELATING TO BANKS.—Section
3(a) of the Federal Deposit Insurance Act (12
U.S.C. 1813(a)) is amended by adding at the end
the following new paragraph:
‘‘(5) GUARANTEED DEPOSITORY INSTITUTIONS
NOT
INCLUDED.—Except as otherwise specifically
provided in any provision of this Act, the terms
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‘bank’, ‘national bank’, ‘State bank’, ‘District bank’,
‘branch’, and ‘Federal branch’, whether or not any
such term appears in conjunction with the term ‘in-
sured’, ‘member’, or ‘nonmember’, do not include
any guaranteed depository institution.’’.
(3) DEFINITION RELATING TO SAVINGS ASSO-
CIATIONS.—Section 3(b) of the Federal Deposit In-
surance Act (12 U.S.C. 1813(b)) is amended by
adding at the end the following new paragraph:
‘‘(4) GUARANTEED DEPOSITORY INSTITUTIONS
NOT
INCLUDED.—Except as otherwise specifically
provided in any provision of this Act, the terms ‘sav-
ings association’, ‘Federal savings association’, and
‘State savings association’, whether or not any such
term appears in conjunction with the term ‘insured’,
do not include any guaranteed depository institu-
tion.’’.
(4) DEFINITION
RELATING
TO
APPROPRIATE
FEDERAL
BANKING
AGENCY.—Section 3(q) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(q))
is amended by adding before the last sentence the
following new paragraph:
‘‘(5) The Cross-Guarantee Regulation Corpora-
tion in the case of a guaranteed depository institu-
tion.’’.
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(b) PROHIBITION ON NEW INSURED DEPOSITORY IN-
STITUTIONS, BY CHARTER OR CONVERSION, AFTER EF-
FECTIVE DATE OF CROSS-GUARANTEE SYSTEM.—
(1) NO CONTINUATION OF INSURANCE IN CON-
NECTION
WITH
CONVERSIONS.—Section 4 of the
Federal Deposit Insurance Act (12 U.S.C. 1814) is
amended by adding at the end the following new
subsection:
‘‘(e) INAPPLICABILITY OF SUBSECTIONS (b), (c), AND
(d) AFTER EFFECTIVE DATE OF CROSS-GUARANTEE SYS-
TEM.—Subsections (b), (c), and (d) shall not apply as of
the effective date of the cross-guarantee system under sub-
section (a) of section 141 of the Deposit Insurance Re-
form, Regulatory Modernization, and Taxpayer Protection
Act of 1996, as published by the Cross-Guarantee Regula-
tion Corporation in the Federal Register pursuant to sub-
section (c) of such section.’’.
(2) NO NEW INSURANCE UNDER THE FEDERAL
DEPOSIT INSURANCE ACT.—Section 5 of the Federal
Deposit Insurance Act (12 U.S.C. 1815) is amended
by adding at the end the following new subsection:
‘‘(f) PROHIBITION
ON APPROVAL
OF INSURANCE
AFTER EFFECTIVE DATE OF CROSS-GUARANTEE SYS-
TEM.—No application for insurance under this section
may be approved by the Corporation on or after the date
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by which the Cross-Guarantee Regulation Corporation has
approved, under subsection (a) of section 141 of the De-
posit Insurance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1996, 250 cross-guarantee
contracts described in subsection (a)(2) of such section.’’.
(c) TERMINATION OF DEPOSIT INSURANCE OF GUAR-
ANTEED DEPOSITORY INSTITUTION.—Section 8(a) of the
Federal Deposit Insurance Act (12 U.S.C. 1818(a)) is
amended—
(1) by redesignating paragraph (10) as para-
graph (11); and
(2) by inserting after paragraph (9), the follow-
ing new paragraph:
‘‘(10) TERMINATION OF INSURANCE OF GUAR-
ANTEED DEPOSITORY INSTITUTION.—The status of
any insured depository institution as an insured de-
pository institution shall cease as of the date the in-
stitution becomes a guaranteed depository institu-
tion.’’.
(d) INELIGIBILITY
OF GUARANTEED DEPOSITORY
INSTITUTION
FOR DEPOSIT INSURANCE UNDER
THE
FEDERAL DEPOSIT INSURANCE ACT.—Section 5(a)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1815(a)(1))
is amended by striking ‘‘trust funds (as defined in section
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3(p)),’’ and inserting ‘‘trust funds (as defined in section
3(p)) and is not a guaranteed depository institution,’’.
(e) APPLICABILITY
OF INSURANCE LOGO PROVI-
SIONS.—Section 18(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(a)) is amended by adding at the end
the following new paragraph:
‘‘(4) APPLICABILITY TO GUARANTEED INSTITU-
TIONS.—For purposes of this subsection, the terms
‘insured bank’ and ‘insured savings association’ shall
be deemed to include any bank (as defined in section
3(a) without regard to paragraph (5) of such sec-
tion) and any savings association (as defined in sec-
tion 3(b) without regard to paragraph (4) of such
section) which is a guaranteed depository institu-
tion.’’.
(f) GUARANTEED DEPOSITORY INSTITUTIONS NOT
EXEMPT FROM LIMITATION ON INSURANCE UNDERWRIT-
ING.—Section 24(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1831a(b)) is amended by adding at the end
the following new paragraph:
‘‘(3) APPLICABILITY TO GUARANTEED DEPOSI-
TORY
INSTITUTIONS.—Notwithstanding 
section
3(a)(5), the term ‘insured State bank’ includes, for
purposes of this subsection, a State bank which is a
guaranteed depository institution.’’.
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SEC. 206. AMENDMENTS TO OTHER BANKING LAWS.
(a) EXEMPTION FROM DEPOSITORY INSTITUTION
MANAGEMENT INTERLOCKS ACT.—Section 205 of the De-
pository Institution Management Interlocks Act (12
U.S.C. 3204) is amended by adding at the end the follow-
ing new paragraph:
‘‘(10) 
GUARANTEED
DEPOSITORY
INSTITU-
TION.—Any guaranteed depository institution and
any affiliate of such institution.’’.
(b) EXEMPTION FROM REAL ESTATE APPRAISAL
REQUIREMENTS.—Section 1121(4) of the Financial Insti-
tutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3350(4)) is amended to read as follows:
‘‘(4) FEDERALLY
RELATED
TRANSACTION.—
The term ‘Federally related transaction’—
‘‘(A) means any real estate-related finan-
cial transaction which—
‘‘(i) a Federal financial institutions
regulatory agency or the Resolution Trust
Corporation engages in, contracts for, or
regulates;
‘‘(ii) requires the services of an ap-
praiser; and
‘‘(B) does not include any real estate-relat-
ed financial transaction which is regulated by a
Federal financial institutions regulatory agency
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solely by reason of the involvement of a guaran-
teed depository institution (as defined in section
101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Pro-
tection Act of 1996) in such transaction.’’.
(c) EXEMPTION FROM PAYMENT SYSTEM REQUIRE-
MENTS.—Subtitle A of title IV of the Federal Deposit In-
surance Corporation Improvement Act of 1991 (12 U.S.C.
4401 et seq.) is amended by adding at the end the follow-
ing new section:
‘‘SEC. 408. EXEMPTION FOR GUARANTEED DEPOSITORY IN-
STITUTIONS.
‘‘This subtitle shall not apply with respect to a depos-
itory institution which is a guaranteed depository institu-
tion (as defined in section 101(a)(7) of the Deposit Insur-
ance Reform, Regulatory Modernization, and Taxpayer
Protection Act of 1996).’’.
(d) EXEMPTION FROM THE INTERNATIONAL LEND-
ING SUPERVISION ACT OF 1983.—The last sentence of
section 903(2) of the International Lending Supervision
Act of 1983 (12 U.S.C. 3902(2)) is amended by inserting
‘‘or a guaranteed depository institution (as defined in sec-
tion 101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act of
1996)’’ before the period.
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TITLE III—AMENDMENTS TO TITLE 11,
UNITED STATES CODE
Subtitle A—Amendments to Chapter 1 of
Title 11
SEC. 301. DEFINITIONS.
Section 101 of title 11, United States Code, is
amended—
(a) by adding new subsection (7A)—
‘‘(7A) ‘company’ means any corporation, part-
nership, limited liability company, business trust, as-
sociation, or similar organization, but does not in-
clude a governmental unit;’’;
(b) by adding new subsection (10A)—
‘‘(10A) ‘cross-guarantee contract’ means a con-
tract which—
‘‘(A) is entered into between—
‘‘(i) one or more companies, at least
one of which is a depository institution;
and
‘‘(ii) a cross-guarantee syndicate;
‘‘(B) is approved by the regulation cor-
poration under section 123 of title I of this Act;
‘‘(C) has become effective in accordance
with the contract’s terms; and
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‘‘(D) 
is 
not 
enjoined 
under 
section
123(e)(2)(B) of title I of this Act;’’;
(c) by adding new subsection (10B)—
‘‘(10B) ‘cross-guarantee obligation’ means an
obligation of a direct guarantor arising out of a
cross-guarantee or stop-loss contract, and includes
the obligations of such guarantor under section
125(c)(2) of title I of this Act and sections 321 and
355 of this title;’’;
(d) by adding new subsection (10C)—
‘‘(10C) ‘cross-guarantee premium payment’
means the payment a guaranteed company periodi-
cally makes to the guaranteed company’s direct
guarantors under the terms of a cross-guarantee
contract;’’;
(e) by adding new subsection (10D)—
‘‘(10D) ‘cross-guarantee syndicate’ means any
group of direct guarantors which has entered into a
cross-guarantee contract with one or more guaran-
teed companies;’’;
(f) by adding new subsection (13A)—
‘‘(13A) ‘depository institution’ has the meaning
given to such term in section 3(c)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(c)(1)), how-
ever, for the purposes of this title, depository institu-
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tion shall not mean a Federal branch or an insured
branch as those terms are defined in sections (3)(r)
and (3)(s) of the Federal Deposit Insurance Act (12
U.S.C. 1813(r) and (s));’’;
(g) by adding new subsection (13B)—
‘‘(13B) ‘direct guarantor’ means a member of a
cross-guarantee or stop-loss syndicate which has en-
tered into a cross-guarantee or stop-loss contract
with a guaranteed party;’’;
(h) by adding new subsection (27A)—
‘‘(27A) ‘guaranteed company’ means any com-
pany which has entered into a cross-guarantee con-
tract with a cross-guarantee syndicate and has guar-
anteed obligations outstanding as of the date of the
filing of the petition;’’;
(i) by adding new subsection (27B)—
‘‘(27B) ‘guaranteed creditor’ means any entity
who owns or is the beneficiary of a guaranteed obli-
gation;’’;
(j) by adding new subsection (27C)—
‘‘(27C) ‘guaranteed obligation’ means an obli-
gation of a guaranteed party of which a cross-guar-
antee or stop-loss syndicate has guaranteed perform-
ance, including the timely payment of principal and
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interest, if a failure to perform in a timely manner
constitutes a breach of contract;’’;
(k) by adding new subsection (27D)—
‘‘(27D) ‘guaranteed party’ means any guaran-
teed company or nondepository guarantor;’’;
(l) by adding new subsection (39A)—
‘‘(39A) ‘monitoring fee payment’ means the
periodic payment made by a guaranteed party to a
syndicate agent under the terms of the guaranteed
party’s cross-guarantee or stop-loss contract;’’;
(m) by adding new subsection (40A)—
‘‘(40A) ‘nondepository guarantor’ means any
person or company which has entered into a stop-
loss contract with a stop-loss syndicate;’’;
(n) by adding new subsection (44A)—
‘‘(44A) ‘regulation corporation’ means the
Cross Guarantee Regulation Corporation;’’;
(o) by adding new subsection (53E):
‘‘(53E) ‘stop-loss contract’ means a contract
which—
‘‘(A) is entered into between a person or a
company and a stop-loss syndicate;
‘‘(B) is approved by the regulation cor-
poration under section 123 of title I of this Act;
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‘‘(C) has become effective in accordance
with the contract’s terms; and
‘‘(D) 
is 
not 
enjoined 
under 
section
123(e)(2)(B) of title I of this Act;’’;
(p) by adding new subsection (53F)—
‘‘(53F) ‘stop-loss premium payment’ means the
payment a nondepository guarantor periodically
makes to direct guarantors under the nondepository
guarantor’s stop-loss contract;’’;
(q) by adding new subsection (53G)—
‘‘(53G) ‘stop-loss syndicate’ means any group of
direct guarantors which has entered into a stop-loss
contract with a nondepository guarantor;’’;
(r) by adding new subsection (53H)—
‘‘(53H) ‘syndicate agent’ means any person or
company who acts as the agent for the direct guar-
antors under any cross-guarantee or stop-loss con-
tract;’’.
SEC. 302. APPLICABILITY OF CHAPTERS.
Section 103 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘section 1161’’
and adding ‘‘sections 1161 and 1181’’;
(b) by adding new subsection (h)—
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‘‘(h) Subchapter V of chapter 11 of this title applies
only in a case under such chapter in which a guaranteed
company is the debtor’’; and
(c) by redesignating subsections (h) and (i) as
(i) and (j).
SEC. 303. PUBLIC ACCESS TO PAPERS.
Section 107 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘subsection
(b)’’ and inserting ‘‘subsections (b) and (c)’’; and
(b) by adding new subsection (c)—
‘‘(c) Notwithstanding subsection (a) of this sec-
tion, the identity of a guaranteed creditor and the
amount of a guaranteed creditor’s claim in a case
under subchapter V of chapter 11 is not a matter
of public record and shall be kept confidential.’’.
SEC. 304. WHO MAY BE A DEBTOR.
Section 109 of title 11, United States Code, is
amended—
(a) in subsection (b)(2) by striking ‘‘or’’ from
the end of the subsection;
(b) in subsection (b)(3) by striking ‘‘.’’ and
adding ‘‘; or’’ at the end of the subsection;
(c) by adding new paragraph (b)(4)—
‘‘(4) a guaranteed company.’’;
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(d) in subsection (d) by striking ‘‘and a rail-
road’’ and inserting ‘‘a railroad, and a guaranteed
company’’;
(e) by adding new subsection (h)—
‘‘(h) A company must be a debtor under subchapter
V of chapter 11 if—
‘‘(1) the company is a guaranteed company; or
‘‘(2) the company would be a guaranteed com-
pany but for the requirement that the company has
guaranteed obligations outstanding as of the date of
the filing of the petition and after the date of the
filing of the petition, the company incurs guaranteed
obligations.’’; and
(f) by adding new subsection (i)—
‘‘(i) Once a guaranteed company has become a debtor
under subchapter V of chapter 11, it is not eligible for
relief under any other subchapter of chapter 11 or under
any other chapter in this title.’’
Subtitle B—Amendments to Chapter 3 of
Title 11
SEC. 311. PARTY IN INTEREST.
Title 11, United States Code, is amended by adding
new section 308—
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‘‘§ 308. Party in Interest
‘‘(a) The regulation corporation shall be a party in
interest in any action seeking to impair or limit the obliga-
tions or duties of the debtor or of a direct guarantor under
a cross-guarantee or stop-loss contract.
‘‘(b) A cross-guarantee or stop-loss syndicate shall be
a party in interest for the purpose of filing objections to
the allowance of a claim or interest as provided under sec-
tion 502(a) of this title.
‘‘(c) A cross-guarantee or stop-loss syndicate shall be
a party in interest in any determination of whether a claim
is a guaranteed obligation under a cross-guarantee or
stop-loss contract in a case under subchapter V of chapter
11 of this title.’’.
SEC. 312. QUALIFICATION OF TRUSTEE.
Section 322 of title 11, United States Code, is
amended—
(a) in subsection (a) by inserting ‘‘1183,’’ after
‘‘1163,’’; and
(b) by adding new paragraph (b)(3)—
‘‘(3) In a case under subchapter V of chapter
11, the United States trustee shall consult with the
syndicate agent monitoring the debtor as of the date
of the filing of the petition and shall consider any
existing bonds covering the guaranteed company
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SEC. 
316. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED
LEASES.
Section 365 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘and (d)’’ and
inserting ‘‘(d), and (q)’’;
(b) in paragraph (e)(1), by inserting ‘‘guaran-
teed obligation,’’ after the first usage of ‘‘contract’’;
by inserting ‘‘, guaranteed obligation,’’ after the sec-
ond usage of ‘‘contract’’; by striking ‘‘or’’ after the
first usage of ‘‘terminated’’; by inserting ‘‘;’’ after
the first usage of ‘‘terminated’’; by inserting ‘‘or any
liability thereunder accelerated,’’ after the first
usage of ‘‘modified,’’; by striking ‘‘or’’ after ‘‘right’’;
by inserting ‘‘;’’ after ‘‘right’’; by inserting ‘‘, or li-
ability’’ after ‘‘obligation’’; by inserting ‘‘, guaran-
teed obligation,’’ after the third usage of ‘‘contract’’;
by striking ‘‘or’’ after the second usage of ‘‘termi-
nated’’; by inserting ‘‘;’’ after the second usage of
‘‘terminated’’; by inserting ‘‘or accelerated’’ after the
second usage of ‘‘modified,’’; and by inserting ‘‘,
guaranteed obligation,’’ after the fourth usage of
‘‘contract’’;
(c) in subparagraph (e)(2)(B), by striking
‘‘such contract is a’’ and inserting ‘‘such contract is
not a guaranteed obligation but is some other’’;
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(d) by adding a new subsection (p):
‘‘(p) Notwithstanding subsection (c)(2) of this sec-
tion, the trustee shall be deemed to have assumed as of
the date of filing of the petition all cross-guarantee and
stop-loss contracts to which the debtor is a party. The
trustee shall immediately pay all cross-guarantee premium
payments, stop-loss premium payments, and monitoring
fee payments due under any cross-guarantee or stop-loss
contract so assumed. Any claim for a subsequent breach
of the obligations under such contracts shall be entitled
to priority under section 507(a)(1). The trustee shall not
reject any cross-guarantee or stop-loss contract.’’; and
(e) in paragraph (f)(1) by inserting after ‘‘Ex-
cept as provided in subsection (c) of this section’’
the following to complete the clause, ‘‘and excluding
those executory contracts described in subsection
(p)’’.
Subtitle C—Amendments to Chapter 5 of
Title 11
SEC. 321. OBLIGATIONS OF DIRECT GUARANTORS.
Title 11, United States Code, is amended by adding
a new section 511:
‘‘§ 511. Obligations of Direct Guarantors
‘‘The direct guarantors of a debtor shall pay to the
trustee the amount by which losses accrued by the estate
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as a direct guarantor since the date the petition was filed
exceed the cross-guarantee and stop-loss premiums the es-
tate has accrued since that date. Such payment shall be
received by the trustee on the effective date of a plan con-
firmed under section 1129 of this title or, in the case of
a liquidation under section 1187 of this title, at the time
of the transfer to an unrelated party or the termination
of all of the estate’s guaranteed obligations. The claim re-
sulting from the amount paid by the direct guarantors in
accordance with this subsection shall be subordinated to
all other claims in the case for the purpose of distribution
under this title.’’.
SEC. 322. DEBTOR’S DUTIES.
Section 521 of title 11, United States Code, is
amended—
(a) in paragraph (1) by inserting ‘‘(a)’’ at the
beginning of the paragraph; and
(b) by adding new subparagraph (1)(b):
‘‘(b) in a case under subchapter V of chapter 11 and
subject to the requirement of subsection 107(c) of this
title, file under seal the list of guaranteed creditors and
the amount of the claims of the guaranteed creditors.’’.
SEC. 323. EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, is
amended by adding new paragraph (a)(17):
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‘‘(17) which arises as a result of the debtor’s
cross-guarantee obligations.’’.
SEC. 324. LIMITATION ON AVOIDING POWERS.
Section 546 of title 11, United States Code, is
amended—
(a) by redesignating the second subsection (g)
as subsection (h); and
(b) by adding new subsection (i):
‘‘(i) Notwithstanding sections 544, 545, 547, and
548(a)(2) of this title, the trustee may not avoid a transfer
that is a cross-guarantee premium payment, a stop-loss
premium payment, or a monitoring fee payment made be-
fore the commencement of the case, except under section
548(a)(1) of this title.’’.
SEC. 325. PREFERENCES.
Section 547 of title 11, United States Code, is
amended by adding new subsection (h):
‘‘(h) For the purposes of this section, a payment of
a guaranteed obligation is deemed to be a payment of a
debt incurred by the debtor in the ordinary course of busi-
ness or financial affairs of the debtor and the transferee.’’.
SEC. 326. FRAUDULENT TRANSFERS AND OBLIGATIONS.
Section 548 of title 11, United States Code, is
amended in paragraph (d)(2) by adding new subparagraph
(E):
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‘‘(E) A cross-guarantee syndicate or a syn-
dicate agent that receives a cross-guarantee
premium payment, a stop-loss premium pay-
ment, or a monitoring fee payment takes for
value to the extent of such payment.’’.
SEC. 327. POST–PETITION TRANSACTIONS.
Section 549 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘subsections
(b) or (c)’’ and by inserting ‘‘subsections (b), (c), or
(d)’’;
(b) by adding new subsection (d)—
‘‘(d) The trustee may not avoid under subsection (a)
of this section a transfer of property to a transferee whose
claim, in the absence of such transfer, would be guaran-
teed under a cross-guarantee or stop-loss contract’’; and
(c) by redesignating subsection (d) as sub-
section (e).
SEC. 328. CONTRACTUAL RIGHT TO LIQUIDATE A SECURI-
TIES CONTRACT.
Section 555 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
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‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 329. CONTRACTUAL RIGHT TO LIQUIDATE A COMMOD-
ITIES CONTRACT OR FORWARD CONTRACT.
Section 556 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 330. CONTRACTUAL RIGHT TO LIQUIDATE A REPUR-
CHASE AGREEMENT.
Section 559 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 331. CONTRACTUAL RIGHT TO TERMINATE A SWAP
AGREEMENT.
Section 560 of title 11, United States Code, is
amended—