‘‘(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‘‘(4) [Repealed.]’’; and 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.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING TO QUALIFIED THRIFT INVESTMENTS.—Section 
10(m)(4)(C)(ii) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the 
end the following new subclause: 
‘‘(VIII) Loans and leases for 
motor vehicles acquired for personal, 
family, or household purposes.’’. 
SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS. 
Section 15(h) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o(h)) is amended by adding at the end the 
following new paragraph: 
‘‘(4) SELLING
AND
OFFERING
OF
DEPOSIT 
PRODUCTS.—No law, rule, regulation, or order, or 
other administrative action of any State or political 
subdivision thereof shall directly or indirectly require 
any individual who is an agent of 1 Federal savings 
association (as such term is defined in section 2(5) 
of the Home Owners’ Loan Act (12 U.S.C. 1462(5)) 
in selling or offering deposit (as such term is defined 
in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(l)) products issued by such associa-
tion to qualify or register as a broker, dealer, associ-
ated person of a broker, or associated person of a
dealer, or to qualify or register in any other similar 
status or capacity, if the individual does not—
‘‘(A) accept deposits or make withdrawals 
on behalf of any customer of the association; 
‘‘(B) offer or sell a deposit product as an 
agent for another entity that is not subject to 
supervision and examination by a Federal bank-
ing agency (as defined in section 3(z) of the 
Federal Deposit Insurance Act (12 U.S.C. 
1813(z)), the National Credit Union Adminis-
tration, or any officer, agency, or other entity 
of any State which has primary regulatory au-
thority over State banks, State savings associa-
tions, or State credit unions; 
‘‘(C) offer or sell a deposit product that is 
not an insured deposit (as defined in section 
3(m) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(m))); 
‘‘(D) offer or sell a deposit product which 
contains a feature that makes it callable at the 
option of such Federal savings association; or 
‘‘(E) create a secondary market with re-
spect to a deposit product or otherwise add en-
hancements or features to such product inde-
pendent of those offered by the association.’’.
SEC. 210. FUNERAL- AND CEMETERY-RELATED FIDUCIARY 
SERVICES. 
Section 5(n) of the Home Owners’ Loan Act (12 
U.S.C. 1464(n)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(11) FUNERAL- AND CEMETERY-RELATED FI-
DUCIARY SERVICES.—
‘‘(A) IN GENERAL.—A funeral director or 
cemetery operator, when acting in such capac-
ity, (or any other person in connection with a 
contract or other agreement with a funeral di-
rector or cemetery operator) may engage any 
Federal savings association, regardless of where 
the association is located, to act in any fidu-
ciary capacity in which the savings association 
has the right to act in accordance with this sec-
tion, including holding funds deposited in trust 
or escrow by the funeral director or cemetery 
operator (or by such other party), and the sav-
ings association may act in such fiduciary ca-
pacity on behalf of the funeral director or ceme-
tery operator (or such other person). 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) CEMETERY.—The term ‘ceme-
tery’ means any land or structure used, or
intended to be used, for the interment of 
human remains in any form. 
‘‘(ii) 
CEMETERY
OPERATOR.—The 
term ‘cemetery operator’ means any person 
who contracts or accepts payment for mer-
chandise, endowment, or perpetual care 
services in connection with a cemetery. 
‘‘(iii) FUNERAL DIRECTOR.—The term 
‘funeral director’ means any person who 
contracts or accepts payment to provide or 
arrange—
‘‘(I) services for the final disposi-
tion of human remains; or 
‘‘(II) funeral services, property, 
or merchandise (including cemetery 
services, property, or merchandise).’’. 
SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER RE-
QUIREMENT 
WITH 
RESPECT 
TO 
OUT-OF-
STATE BRANCHES. 
Section 5(r)(1) of the Home Owners’ Loan Act (12 
U.S.C. 1464(r)(1)) is amended by striking the last sen-
tence.
SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL 
LOANS. 
(a) ELIMINATION
OF LENDING LIMIT
ON SMALL 
BUSINESS LOANS.—Section 5(c)(1) of the Home Owners’ 
Loan Act (12 U.S.C. 1464(c)(1)) is amended by inserting 
after subparagraph (V) (as added by section 208 of this 
title) the following new subparagraph: 
‘‘(W) SMALL
BUSINESS
LOANS.—Small 
business loans, as defined in regulations which 
the Director shall prescribe.’’. 
(b) INCREASE IN LENDING LIMIT ON OTHER BUSI-
NESS LOANS.—Section 5(c)(2)(A) of the Home Owners’ 
Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by strik-
ing ‘‘, and amounts in excess of 10 percent’’ and all that 
follows through ‘‘by the Director’’. 
SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 
ASSOCIATIONS FOR FEDERAL COURT JURIS-
DICTION. 
Section 5 of the Home Owners’ Loan Act (12 U.S.C. 
1464) is amended by adding at the end the following new 
subsection: 
‘‘(x) HOME STATE CITIZENSHIP.—In determining 
whether a Federal court has diversity jurisdiction over a 
case in which a Federal savings association is a party, the 
Federal savings association shall be considered to be a cit-
izen only of the States in which such savings association
has its home office and its principal place of business (if 
the principal place of business is in a different State than 
the home office).’’. 
SEC. 214. INCREASE IN LIMITS ON COMMERCIAL REAL ES-
TATE LOANS. 
Section 5(c)(2)(B)(i) of the Home Owners’ Loan Act 
(12 U.S.C. 1464(c)(2)(B)(i)) is amended by striking ‘‘400 
percent’’ and inserting ‘‘500 percent’’. 
SEC. 215. REPEAL OF ONE LIMIT ON LOANS TO ONE BOR-
ROWER. 
Subparagraph (A) of section 5(u)(2) of the Home 
Owners’ Loan Act (12 U.S.C. 1464(u)(2)(A)) is amend-
ed—
(1) by striking subclause (I) of clause (ii); 
(2) by redesignating subclauses (II), (III), (IV), 
and (V) of clause (ii) as subclauses (I), (II), (III), 
and (IV), respectively; 
(3) in clause (i)—
(A) by striking ‘‘for any’’ and inserting 
‘‘For any’’; and 
(B) by striking ‘‘; or’’ and inserting a pe-
riod; and 
(4) in clause (ii), by striking ‘‘to develop domes-
tic’’ and inserting ‘‘To develop domestic’’.
SEC. 216. SAVINGS ASSOCIATION CREDIT CARD BANKS. 
Section 10(a)(1)(A) of the Home Owners’ Loan Act 
(12 U.S.C. 1467a(a)(1)(A)) is amended by inserting ‘‘and 
such term does not include an institution described in sec-
tion 2(c)(2)(F) of the Bank Holding Company Act of 1956 
for purposes of subsections (a)(1)(E), (c)(3)(B)(ii), 
(c)(9)(C)(i), and (e)(3)’’ before the period at the end. 
SEC. 217. INTERSTATE ACQUISITIONS BY S&L HOLDING 
COMPANIES. 
Section 10(e)(3) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(e)(3)) is amended—
(1) by redesignating subparagraphs (A), (B), 
and (C) as subparagraphs (B), (C), and (D), respec-
tively; and 
(2) by inserting before subparagraph (B) (as so 
redesignated) the following new subparagraph: 
‘‘(A) such acquisition would be permissible 
under section 3(d) of the Bank Holding Com-
pany Act of 1956 if the savings and loan hold-
ing company were a bank holding company and 
any savings association to be acquired were a 
bank;’’.
TITLE III—CREDIT UNION 
PROVISIONS 
SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHOR-
IZED TO BECOME MEMBERS OF A FEDERAL 
HOME LOAN BANK. 
(a) IN GENERAL.—Section 4(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 
at the end the following new paragraph: 
‘‘(5) CERTAIN
PRIVATELY
INSURED
CREDIT 
UNIONS.—
‘‘(A) IN GENERAL.—A credit union which 
has been determined, in accordance with section 
43(e)(1) of the Federal Deposit Insurance Act 
and subject to the requirements of subpara-
graph (B), to meet all eligibility requirements 
for Federal deposit insurance shall be treated 
as an insured depository institution for pur-
poses of determining the eligibility of such cred-
it union for membership in a Federal home loan 
bank under paragraphs (1), (2), and (3). 
‘‘(B) CERTIFICATION BY APPROPRIATE SU-
PERVISOR.—
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph and subject to clause (ii), a 
credit union which lacks Federal deposit