To amend the Federal Deposit Insurance Act to provide further regulatory relief for depository institutions and clarify certain provisions of law applicable to such institutions, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Services Regulatory Relief 
Amendments Act of 2006''.

SEC. 2. AMENDMENTS RELATING TO NONFEDERALLY INSURED CREDIT UNIONS.

    (a) In General.--Subsection (a) of section 43 of the Federal 
Deposit Insurance Act (12 U.S.C. 1831t(a)) is amended by adding at the 
end the following new paragraph:
            ``(3) Enforcement by appropriate state supervisor.--Any 
        appropriate State supervisor of a private deposit insurer, and 
        any appropriate State supervisor of a depository institution 
        which receives deposits that are insured by a private deposit 
        insurer, may examine and enforce compliance with this 
        subsection under the applicable regulatory authority of such 
        supervisor.''.
    (b) Amendment Relating to Disclosures Required, Periodic Statements 
and Account Records.--Section 43(b)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831t(b)(1)) is amended by striking ``or similar 
instrument evidencing a deposit'' and inserting ``or share 
certificate''.
    (c) Amendments Relating to Disclosures Required, Advertising, 
Premises.--Section 43(b)(2) of the Federal Deposit Insurance Act (12 
U.S.C. 1831t(b)(2)) is amended to read as follows:
            ``(2) Advertising; premises.--
                    ``(A) In general.--Include clearly and 
                conspicuously in all advertising, except as provided in 
                subparagraph (B); and at each station or window where 
                deposits are normally received, its principal place of 
                business and all its branches where it accepts deposits 
                or opens accounts (excluding automated teller machines 
                or point of sale terminals), and on its main Internet 
                page, a notice that the institution is not federally 
                insured.
                    ``(B) Exceptions.--The following need not include a 
                notice that the institution is not federally insured:
                            ``(i) Statements or reports of financial 
                        condition of the depository institution that 
                        are required to be published or posted by State 
                        or Federal law or regulation.
                            ``(ii) Any sign, document, or other item 
                        that contains the name of the depository 
                        institution, its logo, or its contact 
                        information, but only if the sign, document, or 
                        item does not include any information about the 
                        institution's products or services or 
                        information otherwise promoting the 
                        institution.
                            ``(iii) Small utilitarian items that do not 
                        mention deposit products or insurance if 
                        inclusion of the notice would be 
                        impractical.''.
    (d) Amendments Relating to Acknowledgment of Disclosure.--Section 
43(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1831t(b)(3)) 
is amended to read as follows:
            ``(3) Acknowledgment of disclosure.--
                    ``(A) New depositors obtained other than through a 
                conversion or merger.--With respect to any depositor 
                who was not a depositor at the depository institution 
                before the effective date of the Financial Services 
                Regulatory Relief Amendments Act of 2006, and who is 
                not a depositor as described in subparagraph (B), 
                receive any deposit for the account of such depositor 
                only if the depositor has signed a written 
                acknowledgment that--
                            ``(i) the institution is not federally 
                        insured; and
                            ``(ii) if the institution fails, the 
                        Federal Government does not guarantee that the 
                        depositor will get back the depositor's money.
                    ``(B) New depositors obtained through a conversion 
                or merger.--With respect to a depositor at a federally 
                insured depository institution that converts to, or 
                merges into, a depository institution lacking Federal 
                insurance after the effective date of the Financial 
                Services Regulatory Relief Amendments Act of 2006, 
                receive any deposit for the account of such depositor 
                only if--
                            ``(i) the depositor has signed a written 
                        acknowledgment described in subparagraph (A); 
                        or
                            ``(ii) the institution makes an attempt, as 
                        described in subparagraph (D) and sent by mail 
                        no later than 45 days after the effective date 
                        of the conversion or merger, to obtain the 
                        acknowledgment.
                    ``(C) Current depositors.--Receive any deposit 
                after the effective date of the Financial Services 
                Regulatory Relief Amendments Act of 2006 for the 
                account of any depositor who was a depositor on that 
                date only if--
                            ``(i) the depositor has signed a written 
                        acknowledgment described in subparagraph (A); 
                        or
                            ``(ii) the institution makes an attempt, as 
                        described in subparagraph (D) and sent by mail 
                        no later than 45 days after the effective date 
                        of the Financial Services Regulatory Relief 
                        Amendments Act of 2006, to obtain the 
                        acknowledgment.
                    ``(D) Alternative provision of notice to current 
                depositors and new depositors obtained through a 
                conversion or merger.--
                            ``(i) In general.--Transmit to each 
                        depositor who has not signed a written 
                        acknowledgment described in subparagraph (A)--
                                    ``(I) a conspicuous card containing 
                                the information described in clauses 
                                (i) and (ii) of subparagraph (A), and a 
                                line for the signature of the 
                                depositor; and
                                    ``(II) accompanying materials 
                                requesting the depositor to sign the 
                                card, and return the signed card to the 
                                institution.''.
    (e) Repeal of Provision Prohibiting Nondepository Institutions From 
Accepting Deposits.--Section 43 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831t) is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.
    (f) Repeal of Provision Concerning Nondepository Institutions 
Masquerading as Depository Institutions and Clarification of Depository 
Institutions Covered by the Statute.--Subsection (e)(2) (as so 
redesignated by subsection (e) of this section) of section 43 of the 
Federal Deposit Insurance Act (12 U.S.C. 1831t) is amended to read as 
follows:
            ``(2) Depository institution.--The term `depository 
        institution'--
                    ``(A) includes any entity described in section 
                19(b)(1)(A)(iv) of the Federal Reserve Act; and
                    ``(B) does not include any national bank, State 
                member bank, or Federal branch.''.
    (g) Repeal of FTC Authority to Enforce Independent Audit 
Requirement; Concurrent State Enforcement.--Subsection (f) (as so 
redesignated by subsection (e) of this section) of section 43 of the 
Federal Deposit Insurance Act (12 U.S.C. 1831t) is amended to read as 
follows:
    ``(f) Enforcement.--
            ``(1) Limited ftc enforcement authority.--Compliance with 
        the requirements of subsections (b) and (c), and any regulation 
        prescribed or order issued under any such subsection, shall be 
        enforced under the Federal Trade Commission Act by the Federal 
        Trade Commission.
            ``(2) Broad state enforcement authority.--
                    ``(A) In general.--Subject to subparagraph (C), an 
                appropriate State supervisor of a depository 
                institution lacking Federal deposit insurance may 
                examine and enforce compliance with the requirements of 
                this section, and any regulation prescribed under this 
                section.
                    ``(B) State powers.--For purposes of bringing any 
                action to enforce compliance with this section, no 
                provision of this section shall be construed as 
                preventing an appropriate State supervisor of a 
                depository institution lacking Federal deposit 
                insurance from exercising any powers conferred on such 
                official by the laws of such State.
                    ``(C) Limitation on state action while federal 
                action pending.--If the Federal Trade Commission has 
                instituted an enforcement action for a violation of 
                this section, no appropriate State supervisor may, 
                during the pendency of such action, bring an action 
                under this section against any defendant named in the 
                complaint of the Commission for any violation of this 
                section that is alleged in that complaint.''.

SEC. 3. CLARIFICATION OF SCOPE OF APPLICABLE RATE PROVISION.

    Section 44(f) of the Federal Deposit Insurance Act (12 U.S.C. 
1831u(f)) is amended by adding at the end the following new paragraphs:
            ``(3) Other lenders.--In the case of any other lender doing 
        business in the State described in paragraph (1), the maximum 
        interest rate or amount of interest, discount points, finance 
        charges, or other similar charges that may be charged, taken, 
        received, or reserved from time to time in any loan, discount, 
        or credit sale made, or upon any note, bill of exchange, 
        financing transaction, or other evidence of debt issued to or 
        acquired by any other lender shall be equal to not more than 
        the greater of the rates described in subparagraph (A) or (B) 
        of paragraph (1).
            ``(4) Other lender defined.--For purposes of paragraph (3), 
        the term `other lender' means any person engaged in the 
        business of selling or financing the sale of personal property 
        (and any services incidental to the sale of personal property) 
        in such State, except that, with regard to any person or entity 
        described in such paragraph, such term does not include--
                    ``(A) an insured depository institution; or
                    ``(B) any person or entity engaged in the business 
                of providing a short-term cash advance to any consumer 
                in exchange for--
                            ``(i) a consumer's personal check or share 
                        draft, in the amount of the advance plus a fee, 
                        where presentment or negotiation of such check 
                        or share draft is deferred by agreement of the 
                        parties until a designated future date; or
                            ``(ii) a consumer authorization to debit 
                        the consumer's transaction account, in the 
                        amount of the advance plus a fee, where such 
                        account will be debited on or after a 
                        designated future date.''.

            Passed the House of Representatives September 27, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Financial Services Regulatory Relief Amendments Act of 2006 - (Sec. 2) Amends the Federal Deposit Insurance Act regarding depository institutions lacking federal deposit insurance to authorize the state supervisor of a private deposit insurer, or of a depository institution which receives deposits insured by a private deposit insurer, to examine and enforce compliance with the requirement that a private deposit insurer obtain annual independent audits.

Requires depository institutions without federal deposit insurance to disclose on every share certificate that: (1) the institution is not federally insured; and (2) if it fails, the federal government does not guarantee that depositors will get back their money.

Revises the requirement that such institutions disclose conspicuously in all advertising and at each place where deposits are normally received that the institution is not federally insured. Requires such a notice also on the institution's main Internet page. Makes an exception to such requirement for: (1) statements or reports of financial condition required to be published or posted by state or federal law or regulation; (2) any sign, document, or other item containing the institution's name, logo, or contact information, if no products, services, or other promotional information is included; and (3) small utilitarian items that do not mention deposit products or insurance if inclusion of the notice would be impractical.

Requires the institution to obtain or attempt to obtain a written acknowledgment of such disclosure from new depositors acquired through a conversion or merger.

Repeals the prohibition against use of the mails to receive deposits by any depository institution lacking federal deposit insurance unless a state supervisor determines that it meets all requirements for federal deposit insurance.

Repeals coverage as a depository institution under the Act of any entity that, as determined by the Federal Trade Commission (FTC), is engaged in the business of receiving deposits, and could reasonably be mistaken for a depository institution by its current or prospective customers.

Redefines "depository institution" to exclude any national bank, state member bank, or federal branch.

Modifies FTC authority to enforce compliance with the requirements of the Act for depository institutions lacking federal deposit insurance. Removes independent audit requirements enforcement from FTC authority, while retaining enforcement of disclosure requirements. Authorizes an appropriate state supervisor of such institutions to enforce compliance with federal requirements, unless the FTC has already instituted an enforcement action.



(Sec. 3) Imposes on certain other lenders the maximum interest rate or related charges for debt applicable to home state banks in competition with local branches of out-of-state banks.

Defines other lender as any person engaged in the business of selling or financing the sale of personal property (and any incidental services) in a state. Excludes an insured depository institution from other-lender treatment, as well as any person or entity engaged in the business of providing a short-term cash advance to any consumer in exchange for: (1) a consumer's personal check or share draft, in the amount of the advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or (2) a consumer authorization to debit the consumer's transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.