Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
PL 103-328 (H.R.3841), enacted 09/29/1994

108 STAT. 2338 
PUBLIC LAW 103-328—SEPT. 29, 1994 
Public Law 103-328 
103d Congress 
Sept. 29, 1994 
[H.R. 3841] 
Riegle-Neal 
Interstate 
Banking 
and Branching 
Efficiency Act 
of 1994. 
12 u s e 1811 
note. 
An Act 
To amend the Bank Holding Company Act of 1956, the Revised Statutes of the 
United States, and the Federal Deposit Insurance Act to provide for interstate 
banking and branching. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Riegle-Neal 
Interstate Banking and Branching Efficiency Act of 1994". 
(b) TABLE OF CoNTE^^^s.—The table of contents for this Act 
is as follows: 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
101. 
102. 
103. 
104. 
105. 
106. 
107. 
108. 
109. 
110. 
111. 
112. 
113. 
114. 
115. 
Sec. 201. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
Sec. 
202, 
203. 
204, 
205, 
206. 
207, 
208. 
209. 
210. 
21L 
TITLE I—INTERSTATE BANKING AND BRANCHING 
Interstate banking. 
Interstate bank mergers. 
State "opt-in" election to permit interstate branching through de novo 
branches. 
Branching by foreign banks. 
Coordination of examination authority. 
Branch closures. 
Equalizing competitive opportunities for United States and foreign banks. 
Federal Reserve Board study on bank fees. 
Prohibition against deposit production offices. 
Community Reinvestment Act evaluation of banks with interstate 
branches. 
Restatement of existing law. 
GAO report on data collection under interstate branching. 
Maximum interest rate on certain FMHA loans. 
Notice requirements for banking agency decisions preempting State law. 
Moratorium on examination fees under the International Banking Act of 
1978. 
TITLE II—GENERAL PROVISIONS 
Amendments to Federal Deposit Insurance Act and Federal Home Loan 
Bank Act. 
Sense of the Senate concerning multilateral export controls. 
Amendments relating to silver medals for Persian Gulf veterans. 
Commemoration of 1995 Special Olympic World Games. 
National Community Service Commemorative Coins. 
Robert F. Kennedy Memorial Commemorative Coins. 
United States Military Academy Bicentennial Commemorative Coins. 
United States Botanic Garden Commemorative Coins. 
Mount Rushmore Commemorative Coins. 
Study and report on the United States financial services system. 
Flexibility in choosing boards of directors. 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2339 
TITLE I—INTERSTATE BANKING AND 
BRANCHING 
SEC. 101. INTERSTATE BANKING. 
(a) IN GENERAL.—Section 3(d) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1842(d)) is amended to read as follows: 
"(d) INTERSTATE BANKING.— 
"(1) APPROVALS AUTHORIZED.— 
"(A) ACQUISITION OF BANKS.—The Board may approve 
an application under this section by a bank holding com-
pany that is adequately capitalized and adequately man-
aged to acquire control of, or acquire all or substantially 
all of the assets of, a bank located in a State other than 
the home State of such bank holding company, without 
regard to whether such transaction is pronibited under 
the law of any State. 
"(B) PRESERVATION OF STATE AGE LAWS.— 
"(i) IN GENERAL.—^Notwithstanding subparagraph 
(A), the Board may not approve an application pursu-
ant to such subparagraph that would have the effect 
of permitting an out-of-State bank holding company 
to acquire a bank in a host State that has not been 
in existence for the minimum period of time, if any, 
specified in the statutory law of the host State. 
"(ii) SPECIAL RULE FOR STATE AGE LAWS SPECIFYING 
A PERIOD OF MORE THAN 5 YEARS.—^Notwithstanding 
clause (i), the Board may approve, pursuant to 
subparagraph (A), the acquisition of a bank that has 
been in existence for at least 5 years without regard 
to any longer minimum period of time specified in 
a statutory law of the host State. 
"(C) SHELL BANKS.—For purposes of this subsection, 
a bank that has been chartered solely for the purpose 
of, and does not open for business prior to, acquiring control 
of, or acquiring all or substantially all of the assets of, 
an existing bank shall be deemed to have been in existence 
for the same period of time as the bank to be acquired. 
"(D) EFFECT ON STATE CONTINGENCY LAWS.—No provi-
sion of this subsection shall be construed as affecting the 
applicability of a State law that makes an acquisition of 
a bank contingent upon a requirement to hold a portion 
of such bank's assets available for call by a State-sponsored 
housing entity established pursuant to State law, if— 
"(i) the State law does not have the effect of 
discriminating against out-of-State banks, out-of-State 
bank holding companies, or subsidiaries of such banks 
or bank holding companies; 
"(ii) that State law was in effect as of the date 
of enactment of the Riegle-Neal Interstate Banking 
and Branching Efficiency Act of 1994; 
"(iii) the Federal Deposit Insurance Corporation 
has not determined that compliance with such State 
law would result in an unacceptable risk to the appro-
priate deposit insurance fund; and 
"(iv) the appropriate Federal banking agency for 
such bank has not found that compliance with such 
108 STAT. 2340 
PUBLIC LAW 103-328—SEPT. 29, 1994 
State law would place the bank in an unsafe or 
unsound condition. 
"(2) CONCENTRATION LIMITS.— 
"(A) NATIONWIDE CONCENTRATION LiMiTS.^The Board 
may not approve an application pursuant to paragraph 
(1)(A) if the applicant (including all insured depository 
institutions which are affiliates of the applicant) controls, 
or upon consummation of the acquisition for which such 
application is filed would control, more than 10 percent 
of the total amount of deposits of insured depository institu-
tions in the United States. 
"(B) 
STATEWIDE CONCENTRATION LIMITS OTHER THAN 
WITH RESPECT TO INITIAL ENTRIES.—The Board may not 
approve an application pursuant to paragraph (1)(A) if— 
"(i) immediately before the consummation of the 
acquisition for which such application is filed, the 
am)licant (including any insured depository institution 
affiliate of the applicant) controls any insured deposi-
tory institution or any branch of an insured depository 
institution in the home State of any bank to be 
acquired or in any host State in which any such bank 
maintains a branch; and 
"(ii) the applicant (including all insured depository 
institutions which are affiliates of the applicant), upon 
consummation of the acquisition, would control 30 per-
cent or more of the total amount of deposits of insured 
depository institutions in any such State. 
"(C) EFFECTIVENESS OF STATE DEPOSIT CAPS.—^No provi-
sion of this subsection shall be construed as affecting the 
authority of any State to limit, by statute, regulation, or 
order, the percentage of the total amount of deposits of 
insured depository institutions in the State which may 
be held or controlled by any bank or bank holding compsmy 
(including all insured depository institutions which are 
affiliates of the bank or bank holding company) to the 
extent the application of such limitation does not discrimi-
nate against out-of-State banks, out-of-State bank holding 
companies, or subsidiaries of such banks or holding 
companies. 
"(D) EXCEPTIONS TO SUBPARAGRAPH (B).—The Board 
may approve an application pursuant to paragraph (1)(A) 
without regard to the applicability of subparagraph (B) 
with respect to any State if— 
"(i) there is a limitation described in subparagraph 
(C) in a State statute, regulation, or order which has 
the effect of permitting a bank or bank holding com-
pany (including all insured depository institutions 
which are affiliates of the bank or bank holding com-
pany) to control a greater percentage of total deposits 
of all insured depository institutions in the State than 
the percentage permitted under subparagraph (B); or 
"(ii) the acquisition is approved by the appropriate 
State bank supervisor of such State and the standard 
on which such approval is based does not have the 
effect of discriminating against out-of-State banks, out-
of-State bank holding companies, or subsidiaries of 
such banks or holding companies. 
y<«|tMK#r'^ 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2341 
"(E) DEPOSIT DEFINED.—For purposes of this para-
graph, the term 'deposit' has the same meaning as in 
section 3(1) of the Federal Deposit Insurance Act. 
"(3) COMMUMTY REINVESTMENT COMPLIANCE.—In determin-
ing whether to approve an application under paragraph (1)(A), 
the Board shall— 
"(A) comply with the responsibilities of the Board 
regarding such application under section 804 of the 
Community Reinvestment Act of 1977; and 
"(B) take into account the applicant's record of compli-
ance with applicable State community reinvestment laws. 
"(4) APPLICABILITY OF ANTITRUST LAWS.—No provision of 
this subsection shall be construed as affecting— 
"(A) the applicability of the antitrust laws; or 
"(B) the applicability, if any, of any State law which 
is similar to the antitrust laws. 
"(5) EXCEPTION FOR BANKS IN DEFAULT OR IN DANGER OF 
DEFAULT.—^The Board may approve an application pursuant 
to paragraph (1)(A) which involves— 
"(A) an acquisition of 1 or more banks in default or 
in danger of default; or 
"(B) an acquisition with respect to which assistance 
is provided under section 13(c) of the Federal Deposit Insur-
ance Act; 
without regard to subparagraph (B) or (D) of paragraph (1) 
or paragraph (2) or (3).". 
(b) STATE TAXATION AUTHORITY NOT AFFECTED.—Section 7 of 
the Bank Holding Company Act of 1956 (12 U.S.C. 1846) is 
amended— 
(1) by striking "No provision" and inserting "(a) IN GEN-
ERAL.—^No provision"; and 
(2) by adding at the end the following new subsection: 
"(b) STATE TAXATION AUTHORITY NOT AFFECTED.—^No provision 
of this Act shall be construed as aifecting the authority of any 
State or political subdivision of any State to adopt, apply, or admin-
ister any tax or method of taxation to any bank, bank holding 
company, or foreign bank, or any affiliate of any bank, bank holding 
company, or foreign bank, to the extent that such tax or tax method 
is otherwise permissible by or under the Constitution of the United 
States or other Federal law.". 
(c) DEFINITIONS.—Section 2 of the Bank Holding Company Act 
of 1956 (12 U.S.C. 1841) is amended by adding at the end the 
following new subsections: 
"(n) INCORPORATED DEFINITIONS.—For purposes of this Act, 
the terms 'insured depository institution', 'appropriate Federal 
banking agency', 'default', 'in danger of default', and 'State bank 
supervisor' have the same meanings as in section 3 of the Federal 
Deposit Insurance Act. 
"(o) OTHER DEFINITIONS.—For purposes of this Act, the follow-
ing definitions shall apply: 
"(1) 
ADEQUATELY 
CAPITALIZED.—^The term 
'adequately 
capitalized' means a level of capitalization which meets or 
exceeds all applicable Federal regulatory capital standards. 
"(2) ANTITRUST LAWS.—Except as provided in section 11, 
the term 'antitrust laws'— 
"(A) has the same meaning as in subsection (a) of 
the first section of the Clajrton Act; and 
108 STAT. 2342 
PUBLIC LAW 103-328—SEPT. 29, 1994 
"(B) includes section 5 of the Federal Trade Commis-
sion Act to the extent that such section 5 relates to unfair 
methods of competition. 
"(3) BRANCH.—The term 'branch' means a domestic branch 
(as defined in section 3 of the Federal Deposit Insurance Act). 
"(4) HOME STATE.—The term 'home State' means— 
"(A) with respect to a national bank, the State in 
which the main office of the bank is located; 
"(B) with respect to a State bank, the State by which 
the bank is chartered; and 
"(C) with respect to a bank holding company, the State 
in which the total deposits of all banking subsidiaries of 
such company are the largest on the later of— 
"(i) July 1, 1966; or 
"(ii) the date on which the company becomes a 
bank holding company under this Act. 
"(5) HOST STATE.—The term 'host State' means— 
"(A) with respect to a bank, a State, other than the 
home State of the bank, in which the bank maintains, 
or seeks to establish and maintain, a branch; and 
"(B) with respect to a bank holding company, a State, 
other than the home State of the company, in which the 
company controls, or seeks to control, a bank subsidiary. 
"(6) OUT-OF-STATE BANK.—The term 'out-of-State bank' 
means, with respect to any State, a bank whose home State 
is another State. 
"(7) OUT-OF-STATE BANK HOLDING COMPANY.—^The term 
'out-of-State bank holding company' means, with respect to 
any State, a bank holding company whose home State is 
another State.". 
(d) SUBSIDIARY DEPOSITORY INSTITUTIONS AS AGENTS.—Section 
18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended 
by adding at the end the following new subsection: 
"(r) SUBSIDIARY DEPOSITORY INSTITUTIONS AS AGENTS FOR CER-
TAIN AFFILIATES.— 
"(1) IN GENERAL.—^Any bank subsidiary of a bank holding 
company may receive deposits, renew time deposits, close loans, 
service loans, and receive pa5niients on loans and other obliga-
tions as an agent for a depository institution affiliate. 
"(2) BANK ACTING AS AGENT IS NOT A BRANCH.—Notwith-
standing any other provision of law, a bank acting as an agent 
in accordance with paragraph (1) for a depository institution 
affiliate shall not be considered to be a branch of the affiliate. 
"(3) PROHIBITIONS ON ACTIVITIES.—A depository institution 
may not— 
"(A) conduct any activity as an agent under paragraph 
(1) or (6) which such institution is prohibited from conduct-
ing as a principal under any applicable Federal or State 
law; or 
"(B) as a principal, have an agent conduct any activity 
under paragraph (1) or (6) which the institution is prohib-
ited from conducting under any applicable Federal or State 
law. 
"(4) EXISTING AUTHORITY NOT AFFECTED.—^No provision of 
this subsection shall be construed as affecting— 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2343 
"(A) the authority of any depository institution to act 
as an agent on behalf of any other depository institution 
under any other provision of law; or 
"(B) whether a depository institution which conducts 
any activity as an agent on behalf of any other depository 
institution under any other provision of law shall be consid-
ered to be a branch of such other institution. 
"(5) AGENCY RELATIONSHIP REQUIRED TO BE CONSISTENT 
WITH SAFE AND SOUND BANKING PRACTICES.—An agency rela-
tionship between depository institutions under paragraph (1) 
or (6) shall be on terms that are consistent with safe and 
sound banking practices and all applicable regulations of any 
appropriate Federal banking agency. 
"(6) 
AFFILIATED 
INSURED 
SAVINGS 
ASSOCIATIONS.—An 
insured savings association which was an affiliate of a bank 
on July 1, 1994, may conduct activities as Ein agent on behalf 
of such bank in the same manner as an insured bank affiliate 
of such bank may act as agent for such bank under this sub-
section to the extent such activities are conducted only in— 
"(A) any State in which— 
"(i) the bank is not prohibited from operating a 
branch under any provision of Federal or State law; 
and 
"(ii) the savings sissociation maintained an office 
or branch and conducted business as of July 1, 1994; 
or 
"(B) any State in which— 
"(i) the bank is not expressly prohibited from 
operating a branch under a State law described in 
section 44(a)(2); and 
"(ii) the savings association maintained a main 
office and conducted business as of July 1, 1994.". 
(e) EFFECTIVE DATE.^The amendments made by this section 
12 use 1828 
shall take effect at the end of the 1-year period beginning on 
^°^-
the date of the enactment of this Act. 
SEC. 102. INTERSTATE BANK MERGERS. 
(a) IN GENERAL.—The Federal Deposit Insurance \ct (12 U.S.C. 
1811 et seq.) is amended by adding at the end the following new 
section: 
"SEC. 44. INTERSTATE BANK MERGERS. 
12 USC 1831u. 
"(a) APPROVAL OF INTERSTATE MERGER TRANSACTIONS AUTHOR-
IZED.— 
"(1) IN GENERAL.—Beginning on June 1, 1997, the respon-
sible agency may approve a merger transaction under section 
18(c) between insured banks with different home States, with-
out regard to whether such transaction is prohibited under 
the law of any State. 
"(2) 
STATE ELECTION TO PROHIBIT INTERSTATE MERGER 
TRANSACTIONS.— 
"(A) IN GENERAL.—Notwithstanding paragraph (1), a 
merger transaction may not be approved pursuant to para-
graph (1) if the transaction involves a bank the home 
State of which has enacted a law after the date of enact-
ment of the Riegle-Neal Interstate Banking and Branching 
Efficiency Act of 1994 and before June 1, 1997, that— 
"(i) applies equally to all out-of-State banks; and 
108 STAT. 2344 
PUBLIC LAW 103-328—SEPT. 29, 1994 
"(ii) expressly prohibits merger transactions involv-
ing out-of-State banks. 
"(B) No EFFECT ON PRIOR APPROVALS OF MERGER TRANS-
ACTIONS.—^A law enacted by a State pursuant to subpara-
graph (A) shall have no effect on merger transactions that 
were approved before the effective date of such law. 
"(3) STATE ELECTION TO PERMIT EARLY INTERSTATE MERGER 
TRANSACTIONS.— 
"(A) IN GENERAL.—A merger transaction may be 
approved pursuant to paragraph (1) before June 1, 1997, 
if the home State of each bank involved in the transaction 
has in effect, as of the date of the approval of such trans-
action, a law that— 
"(i) applies equally to all out-of-State banks; and 
"(ii) expressly permits interstate merger trans-
actions with all out-of-State banks. 
"(B) CERTAIN CONDITIONS ALLOWED.—A host State may 
impose conditions on a branch within such State of a bank 
resulting from an interstate merger transaction if— 
"(i) the conditions do not have the effect of discrimi-
nating against out-of-State banks, out-of-State bank 
holding companies, or any subsidiary of such bank 
or company (other than on the basis of a nationwide 
reciprocal treatment requirement); 
"(ii) the imposition of the conditions is not pre-
empted by Federal law; and 
"(iii) the conditions do not apply or require 
performance after May 31, 1997. 
"(4) INTERSTATE MERGER TRANSACTIONS INVOLVING ACQUISI-
TIONS OF BRANCHES.— 
"(A) IN GENERAL.—^An interstate merger transaction 
may involve the acquisition of a branch of an insured 
bank without the acquisition of the bank only if the law 
of the State in which the branch is located permits out-
of-State banks to acquire a branch of a bank in such 
State without acquiring the bank. 
"(B) 
TREATMENT OF BRANCH FOR PURPOSES OF THIS 
SECTION.—In the case of an interstate merger transaction 
which involves the acquisition of a branch of an insured 
bank without the acquisition of the bank, the branch shall 
be treated, for purposes of this section, as an insured 
bank the home State of which is the State in which the 
branch is located. 
"(5) PRESERVATION OF STATE AGE LAWS.— 
"(A) IN GENERAL.—^The responsible agency may not 
approve an application pursuant to paragraph (1) that 
would have the effect of permitting an out-of-State bank 
or out-of-State bank holding company to acquire a bank 
in a host State that has not been in existence for the 
minimum period of time, if any, specified in the statutory 
law of the host State. 
"(B) 
SPECIAL RULE FOR STATE AGE LAWS SPECIFYING 
A PERIOD OF MORE THAN 5 YEARS.—Notwithstanding 
subparagraph (A), the responsible agency may approve a 
merger transaction pursuant to paragraph (1) involving 
the acquisition of a bank that has been in existence at 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2345 
least 5 years without regard to any longer minimum period 
of time specified in a statutory law of the host State. 
"(6) SHELL BANKS.—^For purposes of this subsection, a bank 
that has been chartered solely for the purpose of, and does 
not open for business prior to, acquiring control of, or acquiring 
all or substantisdly all of the assets of, an existing bank or 
branch shall be deemed to have been in existence for the 
same period of time as the bank or branch to be acquired. 
"(b) PROVISIONS RELATING TO APPLICATION AND APPROVAL 
PROCESS.— 
"(1) COMPLIANCE WITH STATE FILING REQUIREMENTS.— 
"(A) IN GENERAL.—^Any bank which files an application 
for an interstate merger transaction shall— 
"(i) comply with the filing requirements of any 
host State of the bank which will result from such 
transaction to the extent that the requirement— 
"(I) does not have the effect of discriminating 
against out-of-State banks or out-of-State bank 
holding companies or subsidiaries of such banks 
or bank holding companies; and 
"(II) is similar in effect to £my requirement 
imposed by the host State on a nonbanking cor-
poration 
incorporated in another 
State 
that 
engages in business in the host State; and 
"(ii) submit a copy of the application to the State 
bank supervisor of the host State. 
"(B) PENALTY FOR FAILURE TO COMPLY.—^The respon-
sible agency may not approve an application for an inter-
state merger transaction if the applicfint materially fails 
to comply with subparagraph (A). 
"(2) CONCENTRATION LIMITS.— 
"(A) NATIONWIDE CONCENTRATION LIMITS.—The respon-
sible agency may not approve an application for an inter-
state merger transaction if the resulting bank (including 
all insured depository institutions which are affiliates of 
the resulting bank), upon consummation of the transaction, 
would control more than 10 percent of the total amount 
of deposits of insured depository institutions in the United 
States. 
"(B) STATEWIDE CONCENTRATION LIMITS OTHER THAN 
WITH RESPECT TO INITIAL ENTRIES.—^The responsible agency 
may not approve an application for an interstate merger 
transaction i
f
— 
"(i) any bank involved in the transaction (including 
all insured depository institutions which are Eiffiliates 
of any such bank) has a branch in any State in which 
any other bank involved in the transaction has a 
branch; and 
"(ii) the resulting bank (including all insured 
depository institutions which would be gmfiliates of the 
resulting bank), upon consummation of the transaction, 
would control 30 percent or more of the total amount 
of deposits of insured depository institutions in any 
such State. 
"(C) EFFECTIVENESS OF STATE DEPOSIT CAPS.—^No provi-
sion of this subsection shall be construed as affecting the 
authority of any State to limit, by statute, regulation, or 
108 STAT. 2346 
PUBLIC LAW 103-328—SEPT. 29, 1994 
order, the percentage of the total amount of deposits of 
insured depository institutions in the State which may 
be held or controlled by any bank or bank holding company 
(including all insured depository institutions which are 
affiliates of the bank or bank holding company) to the 
extent the application of such limitation does not discrimi-
nate against out-of-State banks, out-of-State bank holding 
companies, or subsidiaries of such banks or holding 
companies. 
"(D) EXCEPTIONS TO SUBPARAGRAPH (B).—The respon-
sible agency may approve an application for an interstate 
merger transaction pursuant to subsection (a) without 
regard to the applicability of subparagraph (B) with respect 
to any State if— 
"(i) there is a limitation described in subparagraph 
(C) in a State statute, regulation, or order which has 
the effect of permitting a bank or bank holding com-
pany (including all insured depository institutions 
which are affiliates of the bank or bank holding com-
pany) to control a greater percentage of total deposits 
of all insured depository institutions in the State than 
the percentage permitted under subparagraph (B); or 
"(ii) the transaction is approved by the appropriate 
State bank supervisor of such State and the standard 
on which such approval is based does not have the 
effect of discriminating against out-of-State banks, out-
of-State bank holding companies, or subsidiaries of 
such banks or holding companies. 
"(E) EXCEPTION FOR CERTAIN BANKS.^This paragraph 
shall not apply with respect to any interstate merger trans-
action involving only affiliated banks. 
"(3) COMMUNITY REINVESTMENT COMPLIANCE.—In determin-
ing whether to approve an application for an interstate merger 
transaction in which the resulting bank would have a branch 
or bank Eiffiliate immediately following the transaction in any 
State in which the bank submitting the application (as the 
acquiring bank) had no branch or bank siffiliate immediately 
before the transaction, the responsible agency shall— 
"(A) comply with the responsibilities of the agency 
regarding such application under section 804 of the 
Community Reinvestment Act of 1977; 
"(B) take into account the most recent written evalua-
tion under section 804 of the Community Reinvestment 
Act of 1977 of any bank which would be an affiliate of 
the resulting bank; and 
"(C) take into account the record of compliance of any 
applicant bank with applicable State community reinvest-
ment laws. 
"(4) ADEQUACY OF CAPITAL AND MANAGEMENT SKILLS.—^The 
responsible agency may approve an application for an interstate 
merger transaction pursuant to subsection (a) only if— 
"(A) each bank involved in the transaction is ade-
quately capitalized as of the date the application is filed; 
and 
"(B) the responsible agency determines that the result-
ing bank will continue to be adequately capitalized and 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2347 
adequately managed upon the consummation of the 
transaction. 
"(5) 
SURRENDER OF CHARTER AFTER 
MERGER 
TRANS-
ACTION.—^The charters of all banks involved in an interstate 
merger transaction, other than the charter of the resulting 
bank, shall be surrendered, upon request, to the Federal bank-
ing agency or State bank supervisor which issued the charter. 
"(c) APPLICABILITY OF CERTAIN LAWS TO INTERSTATE BANKING 
OPERATIONS.— 
"(1) STATE TAXATION AUTHORITY NOT AFFECTED.— 
"(A) IN GENERAL,—^No provision of this section shall 
be construed as affecting the authority of any State or 
political subdivision of any State to adopt, apply, or admin-
ister any tax or method of taxation to any bank, bank 
holding company, or foreign bank, or any affiliate of any 
bank, bank holding company, or foreign bank, to the extent 
such tax or tax method is otherwise permissible by or 
under the Constitution of the United States or other Fed-
eral law. 
"(B) IMPOSITION OF SHARES TAX BY HOST STATES.— 
In the case of a branch of an out-of-State bank which 
results from an interstate merger transaction, a propor-
tionate amount of the value of the shares of the out-of-
State bank may be subject to any bank shares tax levied 
or imposed by the host State, or any political subdivision 
of such host State that imposes such tax based upon a 
method adopted by the host State, which may include 
allocation and apportionment. 
"(2) APPLICABILITY OF ANTITRUST LAWS.—^No provision of 
this section shall be construed as affecting— 
"(A) the applicability of the antitrust laws; or 
"(B) the applicability, if any, of any State law which 
is similar to the antitrust laws. 
"(3) RESERVATION OF CERTAIN RIGHTS TO STATES.—No provi-
sion of this section shall be construed as limiting in any way 
the right of a State to— 
"(A) determine the authority of State banks chartered 
by that State to establish and maintain branches; or 
"(B) supervise, regulate, and examine State banks 
chartered by that State. 
"(4) STATE-IMPOSED NOTICE REQUIREMENTS.—A host State 
may impose any notification or reporting requirement on a 
branch of an out-of-State bank if the requirement— 
"(A) does not discriminate against out-of-State banks 
or bank holding companies; and 
"(B) is not preempted by any Federal law regarding 
the same subject. 
"(d) OPERATIONS OF THE RESULTING BANK.— 
"(1) CONTINUED OPERATIONS.—A resulting bank may, sub-
ject to the approval of the appropriate Federal banking agency, 
retain and operate, as a main office or a branch, any office 
that any bank involved in an interstate merger transaction 
was operating as a main office or a branch immediately before 
the merger transaction. 
"(2) ADDITIONAL BRANCHES.—Following the consummation 
of any interstate merger transaction, the resulting bank may 
establish, acquire, or operate additional branches at any loca-
108 STAT. 2348 
PUBLIC LAW 103-328—SEPT. 29, 1994 
tion where any bank involved in the transaction could have 
established, acquired, or operated a branch under applicable 
Federal or State law if such bank had not been a party to 
the merger transaction. 
"(3) CERTAIN CONDITIONS AND COMMITMENTS CONTINUED.— 
If, as a condition for the acquisition of a bank by an out-
of-State bank holding company before the date of the enactment 
of the Riegle-Neal Interstate Bgmking and Branching Efficiency 
Act of 1994— 
"(A) the home State of the acquired bank imposed 
conditions on such acquisition by such out-of-State bank 
holding company; or 
"(B) the bank holding company made commitments 
to such State in connection with the acquisition, 
the State may enforce such conditions and commitments with 
respect to such bank holding company or any affiliated succes-
sor company which controls a bank or branch in such State 
as a result of an interstate merger transaction to the same 
extent as the State could enforce such conditions or commit-
ments against the bank holding company before the consumma-
tion of the merger transaction. 
"(e) 
EXCEPTION FOR BANKS IN DEFAULT OR IN DANGER OF 
DEFAULT.—If an application under subsection (a)(1) for approval 
of a merger transaction which involves 1 or more banks in default 
or in danger of default or with respect to which the Corporation 
provides assistance under section 13(c), the responsible agency may 
approve such application without regard to subsection (b), or para-
graph (2), (4), or (5) of subsection (a). 
"(f) DEFINITIONS.—For purposes of this section, the following 
definitions shall apply: 
"(1) 
ADEQUATELY CAPITALIZED.—^The term 
'adequately 
capitalized' has the same meaning as in section 38. 
"(2) ANTITRUST LAWS.—The term 'antitrust laws'— 
"(A) has the same meaning as in subsection (a) of 
the first section of the Clayton Act; and 
"(B) includes section 5 of the Federal Trade Commis-
sion Act to the extent such section 5 relates to unfair 
methods of competition. 
"(3) BRANCH.—^The term 'branch' means any domestic 
branch. 
"(4) HOME STATE.—The term 'home State'— 
"(A) means— 
"(i) with respect to a national bank, the State 
in which the main office of the bank is located; and 
"(ii) with respect to a State bank, the State by 
which the bank is chartered; and 
"(B) with respect to a bank holding company, has the 
same meaning as in section 2(o)(4) of the Bank Holding 
Company Act of 1956. 
"(5) HOST STATE.—^The term 'host State' means, with 
respect to a bank, a State, other than the home State of 
the bank, in which the bank maintains, or seeks to establish 
and maintain, a branch. 
"(6) INTERSTATE MERGER TRANSACTION.—The term 'inter-
state merger transaction' means any merger transaction 
approved pursuant to subsection (a)(1). 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2349 
"(7) MERGER TRANSACTION.—The term 'merger transaction' 
has the meaning determined under section 18(c)(3). 
"(8) OUT-OF-STATE BANK.—The term 'out-of-State bank' 
means, with respect to any State, a bank whose home State 
is another State. 
"(9) OUT-OF-STATE BANK HOLDING COMPANY.—^The term 
'out-of-State bank holding compan}^' means, with respect to 
any State, a bank holding company whose home State is 
another State. 
"(10) RESPONSIBLE AGENCY.—^The term 'responsible agency' 
means the agency determined in accordance with section 
18(c)(2) with respect to a merger transaction. 
"(11) RESULTING BANK.—The term 'resulting bank' means 
a bank that has resulted from an interstate merger transaction 
under this section.", 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) REVISED STATUTES.—Section 5155 of the Revised Stat-
utes (12 U.S.C. 36) is amended— 
(A) by redesignating subsections (d) through (h) as 
subsections (h) through (1), respectively; and 
(B) by inserting after subsection (c) the following new 
subsections: 
"(d) BRANCHES RESULTING FROM INTERSTATE MERGER TRANS-
ACTIONS.—^A national bank resulting from an interstate merger 
transaction (as defined in section 44(f)(6) of the Federal Deposit 
Insurance Act) may maintain and operate a branch in a State 
other than the home State (as defined in subsection (g)(3)(B)) of 
such bank in accordance with section 44 of the Federal Deposit 
Insurance Act. 
"(e) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES.— 
"(1) IN GENERAL.—Effective June 1, 1997, a national bank 
may not acquire, establish, or operate a branch in any State 
other than the bank's home State (as defined in subsection 
(g)(3)(B)) or a State in which the bank already has a branch 
unless the acquisition, establishment, or operation of such 
branch in such State by such national bank is authorized 
under this section or section 13(f), 13(k), or 44 of the Federal 
Deposit Insurance Act. 
"(2) RETENTION OF BRANCHES.—In the case of a national 
bank which relocates the main office of such bank from 1 
State to another State £ifter May 31, 1997, the bank may 
retain and operate branches within the State which was the 
bank's home State (as defined in subsection (g)(3)(B)) before 
the relocation of such office only to the extent the bank would 
be authorized, under this section or any other provision of 
law referred to in paragraph (1), to acquire, establish, or com-
mence to operate a branch in such State i
f
— 
"(A) the bank had no branches in such State; or 
"(B) the branch resulted from— 
"(i) an interstate merger transaction approved 
pursuant to section 44 of the Federal Deposit Insurance 
Act; or 
"(ii) a transaction after May 31, 1997, pursuant 
to which the bank received assistance from the Federal 
Deposit Insurance Corporation under section 13(c) of 
such Act. 
"(f) LAW APPLICABLE TO INTERSTATE BRANCHING OPERATIONS.— 
108 STAT. 2350 
PUBLIC LAW 103-328—SEPT. 29, 1994 
"(1) LAW APPLICABLE TO NATIONAL BANK BRANCHES.— 
"(A) IN GENERAL.—^The laws of the host State regarding 
community reinvestment, consumer protection, fair lending, 
and establishment of intrastate branches shall apply to 
any branch in the host State of an out-of-State national 
bank to the same extent as such State laws apply to 
a branch of a bank chartered by that State, except— 
"(i) when Federal law preempts the application 
of such State laws to a national bank; or 
"(ii) when the Comptroller of the Currency deter-
mines that the application of such State laws would 
have a discriminatory effect on the branch in compari-
son with the effect the application of such State laws 
would have with respect to branches of a bank char-
tered by the host State. 
"(B) ENFORCEMENT OF APPLICABLE STATE LAWS.—^The 
provisions of any State law to which a branch of a national 
bank is subject under this paragraph shall be enforced, 
with respect to such branch, by the Comptroller of the 
Currency. 
"(2) TREATMENT OF BRANCH AS BANK.—All laws of a host 
State, other than the laws regarding community reinvestment, 
consumer protection, fair lending, establishment of intrastate 
branches, and the application or administration of any tax 
or method of taxation, shall apply to a branch (in such State) 
of an out-of-State national bank to the same extent as such 
laws would apply if the branch were a national bank the 
main office of which is in such State. 
"(3) RULE OF CONSTRUCTION.—NO provision of this sub-
section may be construed as affecting the legal standards for 
preemption of the application of State law to national banks.". 
(2) ACT OF MAY i, isse.—Section 2 of the Act entitled 
"An Act to enable national banking associations to increase 
their capital stock and to change their names and locations." 
and approved May 1, 1886 (12 U.S.C. 30) is amended by adding 
at the end the following new subsection: 
"(c) COORDINATION WITH REVISED STATUTES.—In the case of 
a national bank which relocates the main office of such bank from 
1 State to another State after May 31, 1997, the bank may retain 
and operate branches within the State from which the bank 
relocated such office only to the extent authorized in section 
5155(e)(2) of the Revised Statutes.". 
(3) FEDERAL DEPOSIT INSURANCE ACT.— 
(A) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES 
OF STATE NONMEMBER BANKS.—Section 18(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by 
adding at the end the following new paragraph: 
"(3) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES.— 
"(A) IN GENERAL.—Effective June 1, 1997, a State 
nonmember bank may not acquire, establish, or operate 
a branch in any State other than the bank's home State 
(as defined in section 44(f)(4)) or a State in which the 
bank already has a branch unless the acquisition, establish-
ment, or operation of a branch in such State by a State 
nonmember bank is authorized under this subsection or 
section 13(f), 13(k), or 44. 
PUBLIC LAW 103-328—SEPT. 29, 1994 
i08 STAT. 2351 
i 
"(B) RETENTION OF BRANCHES.—In the case of a State 
nonmember bank which relocates the main office of such 
bank from 1 State to another State after May 31, 1997, 
the bank may retain and operate branches within the State 
which was the bank's home State (as defined in section 
f 
44(f)(4)) before the relocation of such office only to the 
extent the bank would be authorized, under this section 
or any other provision of law referred to in subparagraph 
(A), to acquire, establish, or commence to operate a branch 
in such State if— 
"(i) the bank had no branches in such State; or 
"(ii) the branch resulted from— 
"(I) an interstate merger transaction approved 
pursuant to section 44; or 
"(II) a transaction after May 31, 1997, pursu-
ant to which the bank received assistance from 
the Corporation under section 13(c).". 
(B) ACTIVITIES OF BRANCHES OF STATE BANKS RESULT-
ING FROM INTERSTATE MERGER TRANSACTIONS.—Section 24 
of the Federal Deposit Insurance Act (12 U.S.C. 1831a) 
is amended by adding at the end the following new sub-
section: 
"(j) ACTIVITIES OF BRANCHES OF OUT-OF-STATE BANKS.— 
"(1) IN GENERAL.—^The laws of a host State, including laws 
regarding community reinvestment, consumer protection, fair 
lending, and establishment of intrastate branches, shall apply 
to any branch in the host State of an out-of-State State bank 
to the same extent as such State laws apply to a branch 
of a bank chartered by that State. 
"(2) ACTIVITIES OF BRANCHES.^An insured State bank that 
establishes a branch in a host State may not conduct any 
activity at such branch that is not permissible for a bank 
chartered by the host State. 
"(3) DEFINITIONS.—^The terms 'host State', 
'interstate 
merger transaction', and 'out-of-State bank' have the same 
meanings as in section 44(f).". 
(4) ACT OF NOVEMBER i, I9i8.—The Act entitled "An Act 
to provide for the consolidation of the national banking associa-
tions." and approved November 7, 1918 (12 U.S.C. 215 et seq.) 
is amended— 
(A) by redesignating section 2 as section 3; 
12 USC 2l5a. 
(B) by redesignating section 3 as section 5; 
l2USC2l5b. 
(C) in the 1st section, by striking "That (a) any national 
12 USC 215 note, 
banking association" and inserting the following: 
"SECTION 1. SHORT TITLE. 
National Bank 
"This Act may be cited as the 'National Bank Consolidation and^Merger°Act. 
and Merger Act'. 
"SEC. 2. CONSOUDATION OF BANKS WITHIN THE SAME STATE. 
12 USC 215. 
"(a) IN GENERAL.—Any national bank"; and 
(D) by inserting after section 3 (as so redesignated 
under subparagraph (A) of this paragraph) the following 
new section: 
"SEC. 4. INTERSTATE CONSOLIDATIONS AND MERGERS. 
12 USC 215a-l. 
"(a) IN GENERAL.—^A national bank may engage in a consolida-
tion or merger under this Act with an out-of-State bank if the 
108 STAT. 2352 
PUBLIC LAW 103-328—SEPT. 29, 1994 
consolidation or merger is approved pursuant to section 44 of the 
Federal Deposit Insurance Act. 
"(b) SCOPE OF APPLICATION.—Subsection (a) shall not apply 
with respect to any consolidation or merger before June 1, 1997, 
unless the home State of each bank involved in the transaction 
has in effect a law described in section 44(a)(3) of the Federal 
Deposit Insurance Act. 
"(c) DEFINITIONS.—The terms 'home State' and 'out-of-State 
bank' have the same meaning as in section 44(f) of the Federal 
Deposit Insurance Act,". 
(5) HOME OWNERS' LOAN ACT.—Section 3 of the Home Own-
ers' Loan Act (12 U.S.C. 1462a) is amended— 
(A) by redesignating subsections (f) through (i) as sub-
sections (g) through (j), respectively; and 
(B) by inserting after subsection (e), the following new 
subsection: 
"(f) STATE HOMESTEAD PROVISIONS.—^No provision of this Act 
or any other provision of law administered by the Director shall 
be construed as superseding any homestead provision of any State 
constitution, including any implementing State statute, in effect 
on the date of enactment of the Riegle-Neal Interstate Banking 
and Branching Efficiency Act of 1994, or any subsequent amend-
ment to such a State constitutional or statutory provision in effect 
on such date, that exempts the homestead of any person from 
foreclosure, or forced sale, for the payment of all debts, other 
than a purchase money obligation relating to the homestead, taxes 
due on the homestead, or an obligation arising from work and 
material used in constructing improvements on the homestead.". 
SEC. 103. STATE "OPT-IN" ELECTION TO PERMIT INTERSTATE BRANCH-
ING THROUGH DE NOVO BRANCHES. 
(a) NATIONAL BANKS.—Section 5155 of the Revised Statutes 
(12 U.S.C. 36) is amended by inserting after subsection (f) (as 
added by section 102(b)) the following new subsection: 
"(g) STATE 'OPT-IN' ELECTION To PERMIT INTERSTATE BRANCH-
ING THROUGH DE NOVO BRANCHES.— 
"(1) IN GENERAL.—Subject to paragraph (2), the Comptroller 
of the Currency may approve an application by a national 
bank to establish and operate a de novo branch in a State 
(other than the bank's home State) in which the bank does 
not maintain a branch if— 
"(A) there is in effect in the host State a law that— 
"(i) applies equally to all banks; and 
"(ii) expressly permits all out-of-State banks to 
establish de novo branches in such State; and 
"(B) the conditions established in, or made applicable 
to this paragraph by, paragraph (2) are met. 
"(2) CONDITIONS ON ESTABLISHMENT AND OPERATION OF 
INTERSTATE BRANCH.— 
"(A) ESTABLISHMENT.—^An application by a national 
bank to establish and operate a de novo branch in a host 
State shall be subject to the same requirements and condi-
tions to which an application for an interstate merger 
transaction is subject under paragraphs (1), (3), and (4) 
of section 44(b) of the Federal Deposit Insurance Act. 
"(B) OPERATION.—Subsections (c) and (d)(2) of section 
44 of the Federal Deposit Insurance Act shall apply with 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2353 
respect to each branch of a national bank which is estab-
hshed and operated pursuant to an application approved 
under this subsection in the same manner and to the 
same extent such provisions of such section 44 apply to 
a branch of a national bank which resulted from an inter-
state merger transaction approved pursuant to such section 
44. 
"(3) DEFINITIONS.—The following definitions shall apply for 
purposes of this section: 
"(A) DE NOVO BRANCH.—The term 'de novo branch' 
means a branch of a national bank which— 
"(i) is originally established by the national bank 
as a branch; and 
"(ii) does not become a branch of such bank as 
a result of— 
"(I) the acquisition by the bank of an insured 
depository institution or a branch of an insured 
depository institution; or 
"(II) the conversion, merger, or consolidation 
of any such institution or branch. 
"(B) HOME STATE.—^The term 'home State' means the 
State in which the main office of a national bank is located. 
"(C) HOST STATE.—The term 'host State' means, with 
respect to a bank, a State, other than the home State 
of the bank, in which the bank maintains, or seeks to 
establish and maintain, a branch.". 
(b) STATE BANKS.—Section 18(d) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1828(d)) is amended by inserting after para-
graph (3) (as added by section 102(b)(3) of this title) the following 
new paragraph: 
"(4) 
STATE 
'OPT-IN' ELECTION TO 
PERMIT INTERSTATE 
BRANCHING THROUGH DE NOVO BRANCHES.— 
"(A) IN GENERAL.—Subject to subparagraph (B), the 
Corporation may approve an application by an insured 
State nonmember bank to establish and operate a de novo 
branch in a State (other than the bank's home State) 
in which the bank does not maintain a branch i
f
— 
"(i) there is in effect in the host State a law that— 
"(I) applies equally to all banks; and 
"(II) expressly permits all out-of-State banks 
to establish de novo branches in such State; and 
"(ii) the conditions established 
in, or 
made 
applicable to this paragraph by, subparagraph (B) are 
met. 
"(B) 
CONDITIONS ON ESTABLISHMENT AND OPERATION 
OF INTERSTATE BRANCH.^ 
"(i) ESTABLISHMENT.—^An application by an insured 
State nonmember bank to establish and operate a de 
novo branch in a host State shall be subject to the 
same requirements and conditions to which an applica-
tion for a merger transaction is subject under para-
graphs (1), (3), and (4) of section 44(b). 
"(ii) OPERATION.—Subsections (c) and (d)(2) of sec-
tion 44 shall apply with respect to each branch of 
an insured State nonmember bank which is established 
and operated pursuant to an application approved 
under this paragraph in the same manner and to the 
108 STAT. 2354 
PUBLIC LAW 103-328—SEPT. 29, 1994 
same extent such provisions of such section apply to 
a branch of a State bank which resulted from a merger 
transaction under such section 44. 
"(C) DE NOVO BRANCH DEFINED.—For purposes of this 
paragraph, the term *de novo branch' means a branch of 
a State bank which— 
"(i) is originally established by the State bank 
as a branch; and 
"(ii) does not oecome a branch of such bank as 
a result of— 
"(I) the acquisition by the bank of an insured 
depository institution or a branch of an insured 
depository institution; or 
"(II) the conversion, merger, or consolidation 
of any such institution or branch. 
"(D) HOME STATE DEFINED.—The term 'home State' 
means the State by which a State bank is chartered. 
"(E) HOST STATE DEFINED.—The term 'host State' 
means, with respect to a bank, a State, other than the 
home State of the bank, in which the bank maintains, 
or seeks to establish and maintain, a branch.". 
SEC. 
1
0
4
. 
BRANCHING 
BY 
FOREIGN 
BANKS. 
(a) IN GENERAL.—Section 5(a) of the International Banking 
Act of 1978 (12 U.S.C. 3103(a)) is amended to read as follows: 
"(a) INTERSTATE BRANCHING AND AGENCY OPERATIONS.— 
"(1) FEDERAL BRANCH OR AGENCY.—Subject to the provi-
sions of this Act and with the prior written approval by the 
Board and the Comptroller of the Currency of an application, 
a foreign bank may establish and operate a Federal branch 
or agency in any State outside the home State of such foreign 
bank to the extent that the establishment and operation of 
such branch would be permitted under section 5155(g) of the 
Revised Statutes or section 44 of the Federal Deposit Insurance 
Act if the foreign bank were a national bank whose home 
Stj te is the same State as the home State of the foreign 
bank. 
"(2) STATE BRANCH OR AGENCY.—Subject to the provisions 
of this Act and with the prior written approval by the Board 
and the appropriate State bank supervisor of an application, 
a foreign bank may establish and operate a State branch or 
agency in any State outside the home State of such foreign 
bank to the extent that such establishment and operation would 
be permitted under section 18(d)(4) or 44 of the Federal Deposit 
Insurance Act if the foreign bank were a State bank whose 
home State is the same State as the home State of the foreign 
bank. 
"(3) 
CRITERIA FOR 
DETERMINATION.—In 
approving 
an 
application under paragraph (1) or (2), the Board and (in the 
case of an application under paragraph (1)) the Comptroller 
of the Currency— 
"(A) shall apply the standards applicable to the 
establishment of a foreign bank office in the United States 
under section 7(d); 
"(B) may not approve an application unless the Board 
and (in the case of an application under paragraph (1)) 
the Comptroller of the Currency— 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2355 
"(i) determine that the foreign bank's financial 
resources, including the capital level of the bank, are 
equivalent to those required for a domestic bank to 
be approved for branching under section 5155 of the 
Revised Statutes and section 44 of the Federal Deposit 
Insurance Act; and 
"(ii) consult with the Secretary of the Treasury 
regarding capital equivalency; and 
"(C) shall apply the same requirements and conditions 
to which an application for an interstate merger transaction 
is subject under paragraphs (1), (3), and (4) of section 
44(b) of the Federal Deposit Insurance Act. 
"(4) OPERATION.—Subsections (c) and (d)(2) of section 44 
of the Federal Deposit Insurance Act shall apply with respect 
to each branch and agency of a foreign bank which is estab-
lished and operated pursuant to an application approved under 
this subsection in the same manner and to the same extent 
such provisions of such section apply to a domestic branch 
of a national or State bank (as such terms are defined in 
section 3 of such Act) which resulted from a merger transaction 
under such section 44. 
"(5) EXCLUSIVE AUTHORITY FOR ADDITIONAL BRANCHES.— 
Except as provided in this section, a foreign bank may not, 
directly or indirectly, acquire, establish, or operate a branch 
or agency in any State other than the home State of such 
bank. 
"(6) 
REQUIREMENI^ FOR A SEPARATE SUBSIDIARY.—If 
the 
Board or the Comptroller of the Currency, taking into account 
differing regulatory or accounting standards, finds that adher-
ence by a foreign bank to capital requirements equivalent to 
those imposed under section 5155 of the Revised Statutes and 
section 44 of the Federal Deposit Insurance Act could be verified 
only if the banking activities of such bank in the United States 
are carried out in a domestic banking subsidiary within the 
United States, the Board and (in the case of an application 
under paragraph (1)) the Comptroller of the Currency may 
approve an application under paragraph (1) or (2) subject to 
a requirement that the foreign bank or company controlling 
the foreign bank establish a domestic banking subsidiary in 
the United States. 
"(7) ADDITIONAL AUTHORITY FOR INTERSTATE BRANCHES AND 
AGENCIES OF FOREIGN BANKS.—Notwithstanding paragraphs (1) 
and (2), a foreign bank may, with the approval of the Board 
and the Comptroller of the Currency, establish and operate 
a Federal branch or Federal agency or, with the approval 
of the Board and the appropriate State bank supervisor, a 
State branch or State agency in any State outside the foreign 
bank's home State if— 
"(A) the establishment and operation of a branch or 
agency is expressly permitted by the State in which the 
branch or agency is to be established; and 
"(B) in the case of a Federal or State branch, the 
branch receives only such deposits as would be permissible 
for a corporation organized under section 25A of the Federal 
Reserve Act. 
"(9) HOME STATE OF DOMESTIC BANK DEFINED.—For pur-
poses of this subsection, the term 'home State' means— 
108 STAT. 2356 
PUBLIC LAW 103-328—SEPT. 29, 1994 
"(A) with respect to a national bank, the State in 
which the main office of the bank is located; and 
"(B) with respect to a State bank, the State by which 
the bank is chartered.". 
(b) CONTINUED AUTHORITY FOR LIMITED BRANCHES, AGENCIES, 
OR COMMERCIAL LENDING COMPANIES.—Section 5(b) of the Inter-
national Banking Act of 1978 (12 U.S.C. 3103(b)) is amended by 
adding at the end the following new sentence: "Notwithstanding 
subsection (a), a foreign bank may continue to operate, after the 
enactment of the Riegle-Neal Interstate Banking and Branching 
Efficiency Act of 1994, any Federal branch. State branch. Federal 
agency. State agency, or commercial lending company subsidiary 
which such bank was operating on the day before the date of 
the enactment of such Act to the extent the branch, agency, or 
subsidiary continues, after the enactment of such Act, to engage 
in operations which were lawful under the laws in effect on the 
day before such date.". 
(c) CLARIFICATION OF BRANCHING RULES IN THE CASE OF A 
FOREIGN BANK WITH A DOMESTIC BANK SUBSIDIARY.—Section 5 
of the International Banking Act of 1978 (12 U.S.C. 3103) is 
amended by adding at the end the following new subsection: 
"(d) CLARIFICATION OF BRANCHING RULES IN THE CASE OF A 
FOREIGN BANK WITH A DOMESTIC BANK SUBSIDIARY.—In the case 
of a foreign bank that has a domestic bank subsidiary within 
the United States— 
"(1) the fact that such bank controls a domestic bank shall 
not affect the authority of the foreign bank to establish Federal 
and State branches or agencies to the extent permitted under 
subsection (a); and 
"(2) the fact that the domestic bank is controlled by a 
foreign bank which has Federal or State branches or agencies 
in States other than the home State of such domestic bank 
shall not affect the authority of the domestic bank to establish 
branches outside the home State of the domestic bank to the 
extent permitted under section 5155(g) of the Revised Statutes 
or section 18(d)(4) or 44 of the Federal Deposit Insurance Act, 
as the case may be.". 
(d) HOME STATE DETERMINATIONS.—Section 5(c) of the Inter-
national Banking Act of 1978 (12 U.S.C. 3103(c)) is amended to 
read as follows: 
"(c) DETERMINATION OF HOME STATE OF FOREIGN BANK.—^For 
the purposes of this section— 
"(1) in the case of a foreign bank that has any branch, 
agency, subsidiary commercial lending company, or subsidiary 
bank in more than 1 State, the home State of the foreign 
bank is the 1 State of such States which is selected to be 
the home State by the foreign bank or, in default of any 
such selection, by the Board; and 
"(2) in the case of a foreign bank that does not have 
a branch, agency, subsidiary commercial lending company, or 
subsidiary bank in more than 1 State, the home State of the 
foreign bank is the State in which the foreign bank has a 
branch, agency, subsidiary commercial lending company, or 
subsidiary bank.". 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2357 
SEC. 105. COORDINATION OF EXAMINATION AUTHORITY. 
Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 
1820) is amended by inserting after subsection (g) the following 
new subsection: 
"(h) COORDINATION OF EXAMINATION AUTHORITY.— 
"(1) IN GENERAL,.—^The appropriate State bank supervisor 
of a host State may examine a branch operated in such State 
by an out-of-State insured State bank that resulted from an 
interstate merger transaction approved under section 44 or 
a branch established in such State pursuant to section 5155(g) 
of the Revised Statutes or section 18(d)(4)— 
"(A) for the purpose of determining compliance with 
host State laws, including those that govern banking, 
community reinvestment, fair lending, consumer protection, 
and permissible activities; and 
"(B) to ensure that the activities of the branch are 
not conducted in an unsafe or unsound manner. 
"(2) ENFORCEMENT.—If the State bank supervisor of a host 
State determines that there is a violation of the law of the 
host State concerning the activities being conducted by a branch 
described in paragraph (1) or that the branch is being operated 
in an unsafe and unsound manner, the State bank supervisor 
of the host State or, to the extent authorized by the law of 
the host State, a State law enforcement officer may undertake 
such enforcement actions and proceedings as would be per-
mitted under the law of the host State as if the branch were 
a bank chartered by that host State. 
"(3) COOPERATIVE AGREEMENT.—The State bank super-
visors from 2 or more States may enter into cooperative agree-
ments to facilitate State regulatory supervision of State banks, 
including cooperative agreements relating to the coordination 
of examinations and joint participation in examinations. 
"(4) FEDERAL REGULATORY AUTHORITY.—No provision of this 
subsection shall be construed as limiting in any way the author-
ity of an appropriate Federal banking agency to examine or 
to take any enforcement actions or proceedings against any 
bank or branch of a bank for which the agency is the appro-
priate Federal banking agency.". 
SEC. 106. BRANCH CLOSURES. 
Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 
1831r-l) is amended by adding at the end the following new sub-
section: 
"(d) BRANCH CLOSURES IN INTERSTATE BANKING OR BRANCHING 
OPERATIONS.— 
"(1) NOTICE REQUIREMENTS.—In the case of an interstate 
bank which proposes to close any branch in a low- or moderate-
income area, the notice required under subsection (b)(2) shall 
contain the mailing address of the appropriate Federal banking 
agency and a statement that comments on the proposed closing 
of such branch may be mailed to such agency. 
"(2) ACTION REQUIRED BY APPROPRIATE FEDERAL BANKING 
AGENCY.—If, in the case of a branch referred to in para-
graph (1)— 
"(A) a person from the area in which such brsmch 
is located— 
108 STAT. 2358 
PUBLIC LAW 103-328—SEPT. 29, 1994 
"(i) submits a written request relating to the clos-
ing of such branch to the appropriate Federal banking 
agency; and 
"(ii) includes a statement of specific reasons for 
the request, including a discussion of the adverse effect 
of such closing on the availability of banking services 
in the area affected by the closing of the branch; and 
"(B) the agency concludes that the request is not 
frivolous, 
the agency shall consult with community leaders in the affected 
area and convene a meeting of representatives of the agency 
and other interested depository institution regulatory agencies 
with community leaders in the affected area and such other 
individuals, organizations, and depository institutions (as 
defined in section 19(b)(1)(A) of the Federal Reserve Act) as 
the agency may determine, in the discretion of the agency, 
to be appropriate, to explore the feasibility of obtaining ade-
quate alternative facilities and services for the affected area, 
including the establishment of a new branch by another deposi-
tory institution, the chartering of a new depository institution, 
or the establishment of a community development credit union, 
following the closing of the branch. 
"(3) No EFFECT ON CLOSING.—'No action by the appropriate 
Federal banking agency under paragraph (2) shall affect the 
authority of an interstate bank to close a branch (including 
the timing of such closing) if the requirements of subsections 
(a) and (b) have been met by such bank with respect to the 
branch being closed. 
"(4) DEFINITIONS.—For purposes of this subsection, the fol-
lowing definitions shall apply: 
"(A) INTERSTATE BANK DEFINED.—The term 'interstate 
bank' means a bank which maintains branches in more 
than 1 State. 
"(B) Low- OR MODERATE-INCOME AREA.—The term 'low-
or moderate-income area' means a census tract for which 
the median family income is— 
"(i) less than 80 percent of the median family 
income for the metropolitan statistical area (as des-
ignated by the Director of the Office of Management 
and Budget) in which the census tract is located; or 
"(ii) in the case of a census tract which is not 
located in a metropolitan statistical area, less than 
80 percent of the median family income for the State 
in which the census tract is located, as determined 
without taking into account family income in metropoli-
tan statistical areas in such State.". 
SEC. 107. EQUAUZING COMPETITIVE OPPORTUNITIES FOR UNITED 
^ 
STATES AND FOREIGN BANKS. 
(a) REGULATORY OBJECTIVES.—Section 6 of the International 
Banking Act of 1978 (12 U.S.C. 3104) is amended— 
(1) by redesignating subsections (a) through (c) as sub-
^ 
sections (b) through (d), respectively; and 
(2) by inserting after "SEC. 6" the following new subsection: 
"(a) OBJECTIVE.—In implementing this section, the Comptroller 
and the Federal Deposit Insurance Corporation shall each, by afford-
ing equal competitive opportunities to foreign and United States 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2359 
banking organizations in their United States operations, ensure 
that foreign banking organizations do not receive an unfair competi-
tive advantage over United States banking organizations.". 
(b) REVIEW OF REGULATIONS.— 
12 use 3i04 
(1) IN GENERAL.—Each Federal banking agency, after con- "o**-
sultation with the other Federal banking agencies to assure 
uniformity, shall revise the regulations adopted by such agency 
under section 6 of the International Banking Act of 1978 to 
ensure that the regulations are consistent with the objective 
set forth in section 6(a) of the International Banking Act of 
1978. 
(2) SPECIFIC FACTORS.—In carrying out paragraph (1), each 
Federal banking agency shall consider whether to permit an 
uninsured branch of a foreign bank to accept initial deposits 
of less than $ 100,000 only from— 
(A) individuals who are not citizens or residents of 
the United States at the time of the initial deposit; 
(B) individuals who— 
(i) are not citizens of the United States; 
(ii) are residents of the United States; and 
(iii) are employed by a foreign bank, foreign busi-
ness, foreign government, or recognized international 
organization; 
(C) persons to whom the branch or foreign bank has 
extended credit or provided other nondeposit banking 
services; 
(D) foreign 
businesses and large United 
States 
businesses; 
(E) foreign governmental units and recognized inter-
national organizations; and 
(F) persons who are depositing funds in connection 
with the issuance of a financial instrument by the branch 
for the transmission of funds. 
(3) REDUCTION IN REGULATORY DE MINIMIS EXEMPTION.— 
In carrying out paragraph (1), each Federal banking agency 
shall limit any exemption which is— 
(A) available under any regulation prescribed pursuant 
to section 6(d) of the International Banking Act of 1978 
providing for the acceptance of initial deposits of less than 
$100,000 by an uninsured branch of a foreign bank; and 
(B) based on a percentage of the average deposits at 
such branch; 
to not more than 1 percent of the average deposits at such 
branch. 
(4) ADDITIONAL RELEVANT CONSIDERATIONS.—In carrying 
out paragraph (1), each Federal banking agency shall also 
consider the importance of maintaining and improving the 
availability of credit to all sectors of the United States economy, 
including the international trade finance sector of the United 
State economy. 
(5) DEADLINE FOR PRESCRIBING REVISED REGULATIONS.— 
Each Federal banking agency— 
(A) shall publish final regulations under paragraph 
Federal 
(1) in the Federal Register not later than 12 months after Register, 
the date of enactment of this Act; and 
publication. 
(B) may establish reasonable transition rules to facili-
tate any termination of any deposit-taking activities that 
108 STAT. 2360 
PUBLIC LAW 103-328—SEPT. 29, 1994 
were permissible under regulations that were in effect 
before the date of enactment of this Act. 
(6) DEFINITIONS.—For purposes of this subsection— 
(A) the term "Federal banking agency" means— 
(i) the Comptroller of the Currency with respect 
to Federal branches of foreign banks; and 
(ii) the Federal Deposit Insurance Corporation 
with respect to State branches of foreign banks; and 
(B) the term "uninsured branch" means a branch of 
a foreign bank that is not an insured branch, as defined 
in section 3(s)(3) of the Federal Deposit Insurance Act 
(12U.S.C. 1813(s)(3)). 
(c) AMENDMENT AFFIRMING THAT CONSUMER PROTECTION LAWS 
APPLY TO FOREIGN BANKS.—Section 9(b) of the International Bank-
ing Act of 1978 (12 U.S.C. 3106a) is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (A) and (B) as 
subparagraphs (B) and (C), respectively; and 
(B) by inserting after "which—" the following new 
subparagraph: 
"(A) impose requirements that protect the rights of 
consumers in financial transactions, to the extent that 
the branch, agency, or commercial lending company 
engages in activities that are subject to such laws;"; and 
(2) in paragraph (2)— 
(A) by redesignating subparagraphs (A) and (B) as 
subparagraphs (B) and (C), respectively; eind 
(B) by inserting after "which—" the following new 
subparagraph: 
"(A) impose requirements that protect the rights of 
consumers in financial transactions, to the extent that 
the branch, agency, or commercial lending company 
engages in activities that are subject to such laws;". 
(d) INSURED BANKS IN TERRITORIES NOT TREATED AS FOREIGN 
BANKS FOR PURPOSES OF RETAIL DEPOSIT-TAKING RULE.—Section 
6(d) of the International Banking Act of 1978 (12 U.S.C. 3104(c)) 
(as so redesignated by subsection (a)(1) of this section) is amended 
by adding at the end the following new paragraph: 
"(3) INSURED BANKS IN U.S. TERRITORIES.—^For purposes 
of this subsection, the term 'foreign bank' does not include 
any bank organized under the laws of any territory of the 
United States, Puerto Rico, Guam, American Samoa, or the 
Virgin Islands the deposits of which are insured by the Federal 
Deposit Insurance Corporation pursuant to the Federal Deposit 
Insurance Act.". 
(e) AMENDMENT RELATING TO SHELL BRANCHES.— 
(1) IN GENERAL.—Section 7 of the International Banking 
Act of 1978 (12 U.S.C. 3105) is amended by adding at the 
end the following new subsection: 
"(k) MANAGEMENT OF SHELL BRANCHES.— 
"(1) TRANSACTIONS PROHIBITED.—A branch or agency of 
a foreign bank shall not manage, through an office of the 
foreign bank which is located outside the United States and 
is managed or controlled by such branch or agency, any type 
of activity that a bank organized under the laws of the United 
States, any State, or the District of Columbia is not permitted 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2361 
to manage at any branch or subsidiary of such bank which 
is located outside the United States. 
"(2) REGULATIONS.—^Any regulations promulgated to carry 
out this section— 
"(A) shall be promulgated in accordance with section 
13; and 
"(B) shall be uniform, to the extent practicable.". 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
12 use 3105 
(1) shall become effective at the end of the 180-day period 
^°^-
beginning on the date of enactment of this Act. 
(f) MEETING COMMUNITY CREDIT NEEDS.—Section 5(a) of the 
International Banking Act of 1978 (12 U.S.C. 3103(a)) (as amended 
by section 104 of this Act) is amended by inserting after paragraph 
(7) the following new paragraph: 
"(8) CONTINUING REQUIREMENT FOR MEETING COMMUNITY 
CREDIT NEEDS AFTER INITIAL INTERSTATE ENTRY BY ACQUISI-
TION.— 
"(A) IN GENERAL.—If a foreign bank acquires a bank 
or a branch of a bank, in a State in which the foreign 
bank does not maintain a branch, and such acquired bank 
is, or is part of, a regulated financial institution (as defined 
in section 803 of the Community Reinvestment Act of 1977), 
the Community Reinvestment Act of 1977 shall continue 
to apply to each branch of the foreign bank which results 
from the acquisition as if such branch were a regulated 
financial institution. 
"(B) 
EXCEPTION FOR BRANCH THAT RECEIVES ONLY 
DEPOSITS PERMISSIBLE FOR 
AN 
EDGE 
ACT 
CORPORATION.— 
Paragraph (1) shall not apply to any branch that receives 
only such deposits as are permissible for a corporation 
organized under section 25A of the Federal Reserve Act 
to receive.". 
SEC. 108. FEDERAL RESERVE BOARD STUDY ON BANK FEES. 
(a) IN GENERAL.—Section 1002 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 
note) is amended to read as follows: 
"SEC. 1002. SURVEY OF BANK FEES AND SERVICES. 
"(a) ANNUAL SURVEY REQUIRED.—The Board of Governors of 
the Federal Reserve System shall obtain a sample, which is rep-
resentative by geographic location and size of the institution, of— 
"(1) certain retail banking services provided by insured 
depository institutions; and 
"(2) the fees, if any, which are imposed by such institutions 
for providing any such service, including fees imposed for not 
sufficient funds, deposit items returned, and automated teller 
machine transactions. 
"(b) ANNUAL REPORT TO CONGRESS REQUIRED.— 
"(1) PREPARATION.—The Board of Governors of the Federal 
Reserve System shall prepare a report of the results of each 
survey conducted pursuant to subsection (a). 
"(2) CONTENTS OF THE REPORT.—Each report prepared 
pursuant to paragraph (1) shall include— 
"(A) a description of any discernible trend, in the 
Nation as a whole and in each region, in the cost and 
availability of retail banking services which delineates dif-
108 STAT. 2362 
PUBLIC LAW 103-328—SEPT. 29, 1994 
ferences on the basis of size of the institution and engage-
ment in multistate activity; and 
"(B) a description of the correlation, if any, among 
the following factors: 
"(i) An increase or decrease in the amount of any 
deposit insurance premium assessed by the Feder^ 
Deposit Insurance Corporation against insured deposi-
tory institutions. 
"(ii) An increase or decrease in the amount of 
the fees imposed by such institutions for providing 
retail banking services. 
"(iii) A decrease in the availability of such services. 
"(3) SUBMISSION TO CONGRESS.—The Board of Governors 
of the Federal Reserve System shall submit an annual report 
to the Congress not later than September 1, 1995, and not 
later than June 1 of each subsequent year.". 
12 use 1811 
(b) SUNSET.—The requirements of subsection (a) shall not apply 
note. 
after the end of the 7-year period beginning on the date of enactment 
of this Act. 
12 use 1835a. 
SEC. 109. PROfflBrriON AGAINST DEPOSIT PRODUCTION OFFICES. 
(a) REGULATIONS.—^The appropriate Federal banking agencies 
shall prescribe uniform regulations effective June 1, 1997, which 
prohibit any out-of-State bank from using any authority to engage 
in interstate branching pursuant to this title, or any amendment 
made by this title to any other provision of law, primarily for 
the purpose of deposit production. 
(b) GUIDELINES FOR MEETING CREDIT NEEDS.—Regulations 
issued under subsection (a) shall include guidelines to ensure that 
interstate branches operated by an out-of-State bank in a host 
State are reasonably helping to meet the credit needs of the commu-
nities which the branches serve. 
(c) LIMITATION ON OUT-OF-STATE LOANS.— 
(1) LIMITATION.—Regulations issued under subsection (a) 
shall require that, beginning no earlier than 1 year after 
establishment or acquisition of an interstate branch or branches 
in a host State by an out-of-State bank, if the appropriate 
Federal banking agency for the out-of-State bank determines 
that the bank's level of lending in the host State relative 
to the deposits from the host State (as reasonably determinable 
from available information including the agency's sampling of 
the bank's loan files during an examination or such data as 
is otherwise available) is less than half the average of total 
loans in the host State relative to total deposits from the 
host State (as determinable from relevant sources) for all banks 
the home State of which is such State— 
(A) the appropriate Federal banking agency for the 
out-of-State bank shall review the loan portfolio of the 
bank £ind determine whether the bank is reasonably help-
ing to meet the credit needs of the communities served 
by the bank in the host State; and 
(B) if the agency determines that the out-of-State bank 
is not reasonably helping to meet those needs— 
(i) the agency may order that an interstate branch 
or branches of such bank in the host State be closed 
unless the bank provides reasonable assurances to the 
satisfaction of the appropriate Federal banking agency 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2363 
that the bank has an acceptable plan that will reason-
ably help to meet the credit needs of the communities 
served by the bank in the host State, and 
(ii) the out-of-State bank may not open a new 
interstate branch in the host State unless the bank 
provides reasonable assurances to the satisfaction of 
the appropriate Federal banking agency that the bank 
will reasonably help to meet the credit needs of the 
community that the new branch will serve. 
(2) CONSIDERATIONS.—In making a determination under 
paragraph (1)(A), the appropriate Federal banking agency shall 
consider— 
(A) whether the interstate branch or branches of the 
out-of-State bank were formerly part of a failed or failing 
depository institution; 
(B) whether the interstate branch was acquired under 
circumstances where there was a low loan-to-deposit ratio 
because of the nature of the acquired institution's business 
or loan portfolio; 
(C) whether the interstate branch or branches of the 
out-of-State bank have a higher concentration of commer-
cial or credit card lending, trust services, or other special-
ized activities; 
(D) the ratings received by the out-of-State bank under 
the Community Reinvestment Act of 1977; 
(E) economic conditions, including the level of loan 
demand, within the communities served by the interstate 
branch or branches of the out-of-State bank; and 
(F) the safe and sound operation and condition of the 
out-of-State bank. 
(3) BRANCH CLOSING PROCEDURE.— 
(A) NOTICE REQUIRED.—^Before exercising any authority 
under paragraph (l)(B)(i), the appropriate Federal banking 
agency shall issue to the bank a notice of the agency's 
intention to close an interstate branch or branches and 
shall schedule a hearing. 
(B) HEARING.—Section 8(h) of the Federal Deposit 
Insurance Act shall apply to any proceeding brought under 
this paragraph. 
(d) APPLICATION.—^This section shall apply with respect to any 
interstate branch established or acquired in a host State pursuant 
to this title or any amendment made by this title to any other 
provision of law. 
(e) DEFINITIONS.—^For the purposes of this section, the following 
definitions shall apply: 
(1) APPROPRIATE FEDERAL BANKING AGENCY, BANK, STATE, 
AND STATE BANK.—The terms "appropriate Federal banking 
agency", "bank", "State", and "State bank" have the same mean-
ings as in section 3 of the Federal Deposit Insurance Act. 
(2) HOME STATE.—The term "home State" means— 
(A) in the case of a national bank, the State in which 
the main office of the bank is located; and 
(B) in the case of a State bank, the State by which 
the bank is chartered. 
(3) HOST STATE.—The term "host State" means a State 
in which a bank establishes a branch other than the home 
State of the bank. 
108 STAT. 2364 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(4) INTERSTATE BRANCH.—The term "interstate branch" 
means a branch established pursuant to this title or any amend-
ment made by this title to any other provision of law. 
(5) OUT-OF-STATE BANK.—The term "out-of-State bank" 
means, with respect to any State, a bank the home State 
of which is another State ai^d, for purposes of this section, 
includes a foreign bank, the home State of which is another 
State. 
SEC. 110. COMMUNITY REINVESTMENT ACT EVALUATION OF BANKS 
WITH INTERSTATE BRANCHES. 
(a) IN GENERAL,—Section 807 of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2906) is amended by adding at the end 
the following new subsections: 
"(d) INSTITUTIONS WITH INTERSTATE BRANCHES.— 
"(1) STATE-BY-STATE EVALUATION.—In the case of a regu-
lated financial institution that maintains domestic branches 
in 2 or more States, the appropriate Federal financial super-
visory agency shall prepare— 
"(A) a written evaluation of the entire institution's 
record of performance under this title, as required by sub-
sections (a), (b), and (c); and 
"(B) for each State in which the institution maintains 
1 or more domestic branches, a separate written evaluation 
of the institution's record of performance within such State 
under this title, as required by subsections (a), (b), and 
(0. 
"(2) MULTISTATE METROPOLITAN AREAS.—In the case of a 
regulated 
financial 
institution 
that 
maintains 
domestic 
branches in 2 or more States within a multistate metropolitan 
area, the appropriate Federal financial supervisory agency shall 
prepare a separate written evaluation of the institution's record 
of performance within such metropolitan area under this title, 
as required by subsections (a), (b), and (c). If the agency pre-
pares a written evaluation pursuant to this paragraph, the 
scope of the written evaluation required under paragraph (1)(B) 
shall be adjusted accordingly. 
"(3) CONTENT OF STATE LEVEL EVALUATION.—^A written 
evaluation prepared pursuant to paragraph (1)(B) shall— 
"(A) present the information required by subpara-
graphs (A) and (B) of subsection (b)(1) separately for each 
metropolitan area in which the institution maintains 1 
or more domestic branch offices and separately for the 
remainder of the nonmetropolitan area of the State if the 
institution maintains 1 or more domestic branch offices 
in such nonmetropolitan area; and 
"(B) describe how the Federal financial supervisory 
agency has performed the examination of the institution, 
including a list of the individual branches examined. 
"(e) DEFINITIONS.—For purposes of this section the following 
definitions shall apply: 
"(1) DOMESTIC BRANCH.—The term 'domestic branch' means 
any branch office or other facility of a regulated financial 
institution that accepts deposits, located in any State. 
"(2) METROPOLITAN AREA.—The term 'metropolitan area' 
means any primary metropolitan statistical area, metropolitan 
statistical area, or consolidated metropolitan statistical area. 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2365 
as defined by the Director of the Office of Management and 
Budget, with a population of 250,000 or more, and any other 
area designated as such by the appropriate Federal financial 
supervisory agency, 
"(3) STATE.—^The term 'State' has the same meaning as 
in section 3 of the Federal Deposit Insurance Act.", 
(b) SEPARATE PRESENTATION.—Section 807(b)(1) of the Commu-
nity Reinvestment Act of 1977 (12 U.S.C. 2906(b)(1)) is amended— 
(1) by redesignating subparagraphs (A) through (C) as 
clauses (i) through (iii), respectively; 
(2) by striking "The public" and inserting the following: 
"(A) CONTENTS OF WRITTEN EVALUATION.—The public"; 
and 
(3) by adding at the end the following new subparagraph: 
"(B) METROPOLITAN AREA DISTINCTIONS.—^The informa-
tion required by clauses (i) and (ii) of subparagraph (A) 
shall be presented separately for each metropolitan area 
in which a regulated depository institution maintains one 
or more domestic branch offices.". 
SEC. 111. RESTATEMENT OF EXISTING LAW. 
12 USC 1811 
No provision of this title and no amendment made by this 
title to any other provision of law shall be construed as affecting 
in any way— 
(1) the authority of any State or political subdivision of 
any State to adopt, apply, or administer any tax or method 
of taxation to any bank, bank holding company, or foreign 
bank, or any affiliate of any such bank, bank holding company, 
or foreign bank, to the extent that such tax or tax method 
is otherwise permissible by or under the Constitution of the 
United States or other Federal law; 
(2) the right of any State, or any political subdivision 
of any State, to impose or maintain a nondiscriminatory fran-
chise tax or other nonproperty tax instead of a franchise tax 
in accordance with section 3124 of title 31, United States Code; 
or 
(3) the applicability of section 5197 of the Revised Statutes 
or section 27 of the Federal Deposit Insurance Act. 
SEC. 112. GAG REPORT ON DATA COLLECTION UNDER INTERSTATE 
BRANCHING. 
(a) IN GENERAL.—^The Comptroller General of the United States 
shall submit to the Congress, not later than 9 months after the 
date of enactment of this Act, a report that— 
(1) examines statutory and regulatory requirements for 
insured depository institutions to collect and report deposit 
and lending data; and 
(2) determines what modifications to such requirements 
are needed, so that the implementation of the interstate branch-
ing provisions contained in this title will result in no material 
loss of information important to regulatory or congressional 
oversight of insured depository institutions. 
(b) CONSULTATION.—^The Comptroller General, in preparing the 
report required by this section, shall consult with individuals rep-
resenting the appropriate Federal banking agencies, insured deposi-
tory 
institutions, 
consumers, community 
groups, and other 
interested parties. 
108 STAT. 2366 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(c) DEFINITIONS.—For purposes of this section, the terms 
"appropriate Federal banking agency" and "insured depository 
institution" have the same meanings as in section 3 of the Federal 
Deposit Insurance Act. 
SEC. 113. MAXIMUM INTEREST RATE ON CERTAIN FMHA LOANS. 
(a) IN GENERAL.—Section 307(a) of the ConsoHdated Farm and 
Rural Development Act (7 U.S.C. 1927(a)) is amended— 
(1) in paragraph (3)(A), by striking "Except" and inserting 
"Notwithstanding the provisions of the constitution or laws 
of any State limiting the rate or amount of interest that may 
be charged, taken, received, or reserved, except"; and 
(2) in paragraph (5)— 
(A) by striking "(5) The" and inserting "(5)(A) Except 
as provided in subparagraph (B), the"; and 
(B) by adding at the end the following new subpara-
graph: 
"(B) In the case of a loan made under section 310B as a 
guaranteed loan, subparagraph (A) shall apply notwithstanding 
the provisions of the constitution or laws of any State limiting 
the rate or amount of interest that may be charged, taken, received, 
or reserved.". 
7 u s e 1927 note. 
(b) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraphs (2) 
and (3), the amendments made by subsection (a) shall apply 
to a loan made, insured, or guaranteed under the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in 
a State on or after the date of enactment of this Act. 
(2) STATE OPTION.—^Except as provided in paragraph (3), 
the amendments made by subsection (a) shall not apply to 
a loan made, insured, or guaranteed under the Consolidated 
Farm and Rural Development Act in a State after the date 
(that occurs during the 3-year period beginning on the date 
of enactment of this Act) on which the State adopts a law 
or certifies that the voters of the State have voted in favor 
of a provision of the constitution or law of the State that 
states that the State does not want the amendments made 
by subsection (a) to apply with respect to loems made, insured, 
or guaranteed under such Act in the State. 
(3) TRANSITIONAL PERIOD.—In any case in which a State 
takes an action described in paragraph (2), the amendments 
made by subsection (a) shall continue to apply to a loan made, 
insured, or guaranteed under the Consolidated Farm and Rural 
Development Act in the State after the date the action was 
taken pursuant to a commitment for the loan that was entered 
into during the period beginning on the date of enactment 
of this Act, and ending on the date on which the State takes 
the action. 
SEC. 114. NOTICE REQUIREMENTS FOR BANKING AGENCY DECISIONS 
PREEMPTING STATE LAW. 
Chapter 4 of title LXII of the Revised Statutes (12 U.S.C. 
21 et seq.) is amended by adding at the end the following new 
section: 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2367 
"SEC. 5244. INTERPRETATIONS CONCERNING PREEMPTION OF CER-
TAIN STATE LAWS. 
"(a) 
NOTICE AND OPPORTUNITY FOR COMMENT REQUIRED.— 
Before issuing any opinion letter or interpretive rule, in response 
to a request or upon the agency's own motion, that concludes 
that Federal law preempts the application to a national bank of 
any State law regarding community reinvestment, consumer protec-
tion, fair lending, or the establishment of intrastate branches, or 
before making a determination under section 5155(f)(l)(A)(ii) of 
the Revised Statutes, the appropriate Federal banking agency (as 
defined in section 3 of the Federal Deposit Insurance Act) shall— 
"(1) publish in the Federal Register notice of the preemption 
or discrimination issue that the agency is considering (including 
a description of each State law at issue); 
"(2) give interested parties not less than 30 days in which 
to submit written comments; and 
"(3) in developing the final opinion letter or interpretive 
rule issued by the agency, or making any determination under 
section 5155(f)(l)(A)(ii) of the Revised Statutes, consider any 
comments received. 
"(b) PUBLICATION REQUIRED.—The appropriate Federal banking 
agency shall publish in the Federal Register— 
"(1) any final opinion letter or interpretive rule concluding 
that Federal law preempts the application of any State law 
regarding community reinvestment, consumer protection, fair 
lending, or establishment of intrastate branches to a national 
bank; and 
"(2) any determination under section 5155(f)(l)(A)(ii) of 
the Revised Statutes. 
"(c) EXCEPTIONS.— 
"(1) No NEW ISSUE OR SIGNIFICANT BASIS.—This section 
shall not apply with respect to any opinion letter or interpretive 
rule that— 
"(A) raises issues of Federal preemption of State law 
that are essentially identical to those previously resolved 
by the courts or on which the agency has previously issued 
an opinion letter or interpretive rule; or 
"(B) responds to a request that contains no significant 
legal basis on which to make a preemption determination. 
"(2) JUDICIAL, LEGISLATIVE, OR INTRAGOVERNMENTAL MATE-
RIALS.—This section shall not apply with respect to materials 
prepared for use in judicial proceedings or submission to Con-
gress or a Member of Congress, or for intragovernmental use. 
"(3) EMERGENCY.—The appropriate Federal banking agency 
may make exceptions to subsection (a) i
f
— 
"(A) the agency determines in writing that the excep-
tion is necessary to avoid a serious and imminent threat 
to the safety and soundness of any national bank; or 
"(B) the opinion letter or interpretive rule is issued 
in connection with— 
"(i) an acquisition of 1 or more banks in default 
in danger of default (as such terms are defined 
section 3 of the Federal Deposit Insurance Act); 
12 use 43. 
or 
in 
or 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
"(ii) an acquisition with respect to which the Fed-
eral Deposit Insurance Corporation provides assistance 
note. 
108 STAT. 2368 
PUBLIC LAW 103-328—SEPT. 29, 1994 
under section 13(c) of the Federal Deposit Insurance 
Act.". 
SEC. 115. MORATORIUM ON EXAMINATION FEES UNDER THE INTER-
NATIONAL BANKING ACT OF 1978. 
12 use 3105 
(a) BRANCHES, AGENCIES, AND AFFILIATES.—Section 7(c)(1)(D) 
"°^- 
of the International Banking Act of 1978 shall not apply with 
respect to anv examination under section 7(c)(1)(A) of such Act 
which begins before or during the 3-year period beginning on July 
25, 1994. 
12^^SC 3107 
(b) REPRESENTATIVE OFFICES.—The provision of section 10(c) 
of the International Banking Act of 1978 relating to the cost of 
examinations under such section shall not apply with respect to 
any examination under such section which begins before or during 
the 3-year period beginning on July 25, 1994. 
TITLE II—GENERAL PROVISIONS 
SEC. 201. AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT AND 
FEDERAL HOME LOAN BANK ACT. 
(a) FEDERAL DEPOSIT INSURANCE ACT.—Section ll(d)(14) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(14)) is 
amended by adding at the end the following new subparagraph: 
"(C) REVIVAL OF EXPIRED STATE CAUSES OF ACTION.— 
"(i) IN GENERAL.—In the case of any tort claim 
described in clause (ii) for which the statute of limita-
tion applicable under State law with respect to such 
claim has expired not more than 5 years before the 
appointment of the Corporation as conservator or 
receiver, the Corporation may bring an action as con-
servator or receiver on such claim without regard to 
the expiration of the statute of limitation applicable 
under State law, 
"(ii) CLAIMS DESCRIBED.—A tort claim referred to 
in clause (i) is a claim arising from fraud, intentional 
misconduct resulting in unjust enrichment, or inten-
tional misconduct resulting in substantial loss to the 
institution.". 
(b) FEDERAL HOME LOAN BANK ACT.—Section 21A(b)(14) of 
the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(14)) is 
amended by adding at the end the following new subparagraph: 
"(E) REVIVAL OF EXPIRED STATE CAUSES OF ACTION.— 
In the case of any tort claim described in subparagraph 
(A)(ii) for which the statute of limitation applicable under 
State law with respect to such claim has expired not more 
than 5 years before the appointment of the Corporation 
as conservator or receiver, the Corporation may bring an 
action as conservator or receiver on such claim without 
regard to the expiration of the statute of limitation 
applicable under State law.". 
SEC. 202. 
SENSE OF THE SENATE CONCERNING MULTILATERAL 
EXPORT 
CONTROLS. 
(a) FINDINGS.—The Senate finds that— 
(1) the United States and its allies have agreed that as 
of March 31, 1994, the Coordinating Committee (hereafter 
referred to as "COCOM"), the multilateral body that controlled 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2369 
strategic exports to the former Soviet Union snd other Com-
munist States, ceased to exist; 
(2) no successor has yet been estabHshed to replace the 
COCOM; 
(3) threats to United States security are posed by rogue 
regimes that support terrorism as a matter of national policy; 
(4) a critical element of the United States proposal for 
a successor to COCOM is that supplier nations agree on a 
list of militarily critical products and technologies that would 
be denied to a handful of rogue regimes; 
(5) some allies of the United States oppose this principle 
and instead propose that such controls be left to 'national 
discretion", effectively replacing multilateral export controls 
with a loose collection of unilateral export control policies which 
would be adverse for United States security and economic 
interests; 
(6) multilateral controls are needed to thwart efforts of 
Iran, Iraq, North Korea, Libya, and other rogue regimes, to 
acquire arms and sensitive dual-use goods and technologies 
that could contribute to their efforts to build weapons of mass 
destruction; and 
(7) the United States would be forced to make the difficult 
choice of choosing between unilateral export controls under 
the Export Administration Act of 1979, which would put Amer-
ican companies at a competitive disadvantage worldwide, or 
allowing exports that could seriously harm the national security 
interests of the United States. 
(b) SENSE OF THE SENATE.—It is the sense of the Senate that— 
(1) the President should work to achieve a clearly defined 
and enforceable agreement with allies of the United States 
which establishes a multilateral export control system for the 
proliferation of products and technologies to rogue regimes that 
would jeopardize the national security of the United States; 
and 
(2) the President should persuade allies of the United 
States to promote mutual security interests by preventing rogue 
regimes 
from 
obtaining 
militarily 
critical 
products 
and 
technologies. 
SEC. 203. AMENDMENTS RELATING TO SILVER MEDALS FOR PERSIAN 
GULF VETERANS. 
Title III of Public law 102-281 (31 U.S.C. 5111 note) is 
amended— 
(1) in section 303(b), by striking "entitlement" and inserting 
"enactment"; and 
(2) in section 307 by striking subsection (b) and inserting 
the following: 
"(b) No EXPENDITURES IN ADVANCE OF RECEIPT OF FUNDS.— 
The Secretary of the Treasury shall begin minting and issuing 
the medals described in section 302 whenever there are any funds 
available to cover the cost of minting and issuing any such medals 
from amounts received by the Secretary under section 305 and 
donations by private persons, and shall continue minting and issu-
ing such medals, subject to the availability of funds to cover the 
costs, until all of the medals authorized have been issued.". 
SEC. 204. COMMEMORATION OF 1995 SPECIAL OLYMPIC WORLD GAMES. 
31 USC 5112 
(a) COIN SPECIFICATIONS.— 
^°^' 
108 STAT. 2370 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(1) ONE DOLLAR SILVER COINS.— 
(A) ISSUANCE.—^The Secretary of the Treasury (here-
after in this section referred to as the "Secretary") shall 
issue not more than 800,000 $1 coins, which shall weigh 
26.73 grams, have a diameter of 1.500 inches, and shall 
contain 90 percent silver and IQ percent copper. 
(B) DESIGN.—^The design of the coins issued under 
this section shall be emblematic of the 1995 Special Olym-
pics World Games. On each such coin there shall be a 
designation of the value of the coin, an inscription of the 
year "1995", and inscriptions of the words "Liberty", "In 
Gk)d We Trust", "United States of America", and "E 
Pluribus Unum". 
(2) LEGAL TENDER.—^The coins issued under this section 
shall be legal tender as provided in section 5103 of title 31, 
United States Code. 
(3) NUMISMATIC ITEMS.—^For purposes of section 5132(a)(1) 
of title 31, United States Code, all coins minted under this 
section shall be considered to be numismatic items. 
(b) SOURCES OF BULLION.—The Secretary shall obtain silver 
for the coins minted under this section only from stockpiles estab-
lished under the Strategic and Critical Materials Stock Piling Act. 
(c) SELECTION OF DESIGN.—^The design for the coins authorized 
by this section shall be selected by the Secretary after consultation 
with the 1995 Special Olympics World Games Organizing Commit-
tee, Inc. and the Commission of Fine Arts. As required by section 
5135 of title 31, United States Code, the design shall also be 
reviewed by the Citizens Commemorative Coin Advisory Committee. 
(d) ISSUANCE OF THE COINS.— 
(1) QUALITY OF COINS.—^The coins authorized under this 
section may be issued in uncirculated and proof qualities. 
(2) MINT FACILITY.—^Not more than 1 facility of the United 
States Mint may be used to strike any particular quality of 
the coins minted under this section. 
(3) PERIOD FOR ISSUANCE.—The Secretary shall issue coins 
minted under this section during the period beginning on Janu-
ary 15, 1995, and ending on December 31, 1995. 
(e) SALE OF THE COINS.— 
(1) SALE PRICE.—^The coins issued under this section shall 
be sold by the Secretary at a price equal to the sum of the 
face value of the coins, the surcharge provided in paragraph 
(4) with respect to such coins, and the cost of designing and 
issuing such coins (including labor, materials, dies, use of 
machinery, overhead expenses, marketing, and shipping). 
(2) BULK SALES.—The Secretary shall make bulk sales at 
a reasonable discount. 
(3) PREPAID ORDERS.—^The Secretary shall accept prepaid 
orders for the coins authorized under this section prior to 
the issuance of such coins. Sales under this subsection shall 
be at a reasonable discount. 
(4) SURCHARGE REQUIRED.—^All sales shall include a sur-
charge of $10 per coin. 
(5) INTERNATIONAL SALES.—^The Secretary, in cooperation 
with the 1995 Special Olympics World Games Organizing 
Committee, shall develop an international marketing program 
to promote and sell coins outside of the United States. 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2371 
(f) GENERAL WAIVER OF PROCUREMENT REGULATIONS.—^No 
provision of law governing procurement or public contracts shall 
be applicable to the procurement of goods or services necessary 
for carrying out the provisions of this section. Nothing in this 
subsection shall relieve any person entering into a contract under 
the authority of this section from complying with any law relating 
to equal employment opportunity. 
(g) DISTRIBUTION OF SURCHARGES.—^The total surcharges col-
lected by the Secretarj^ from the sale of the coins issued under 
this section shall be promptly paid by the Secretary to the 1995 
Special Olympics World Games Organizing Committee, Inc. Such 
amounts shall be used to— 
(1) provide a world class sporting event for athletes with 
mental retardation; 
(2) demonstrate to a global audience the extraordinary 
talents, dedication, and courage of persons with mental retarda-
tion; and 
(3) underwrite the cost of staging and promoting the 1995 
Special Oljnnpics World Games. 
(h) AUDITS.—^The Comptroller General of the United States 
shall have the right to examine such books, records, documents, 
and other data of the 1995 Special Olympics World Games Organiz-
ing Committee, Inc. as may be related to the expenditure of amounts 
paid under subsection (g). 
(i) FINANCL\L ASSURANCES.— 
(1) No NET COST TO THE GOVERNMENT.—The Secretary 
shall take all actions necessary to ensure that the issuance 
of the coins authorized by this section shall result in no net 
cost to the United States Government. 
(2) ADEQUATE SECURITY FOR PAYMENT REQUIRED.—^No coin 
shall be issued under this section unless the Secretary has 
received— 
(A) full payment therefor; 
(B) security satisfactory to the Secretary to indemnify 
the United States for full pa)niient; or 
(C) a guarantee of full payment satisfactory to the 
' 
Secretary from a depository institution whose deposits are 
insured by the Federal Deposit Insurance Corporation or 
the National Credit Union Administration Board. 
SEC. 205. NATIONAL COMMUNITY SERVICE COMMEMORATIVE COINS. 
31 USC 5112 
(a) COIN SPECIFICATIONS.— 
(1) $1 SILVER COINS.—The Secretary of the Treasury (here-
after in this section referred to as the "Secretary") shall mint 
and issue not more than 500,000 $1 coins to commemorate 
students who volunteer to perform community service, which 
shall— 
(A) weigh 26.73 grams; 
(B) have a diameter of 1.500 inches; and 
(C) contain 90 percent silver and 10 percent copper. 
(2) LEGAL TENDER.—^The coins issued under this section 
shall be legal tender, as provided in section 5103 of title 31, 
United States Code. 
(3) NUMISMATIC ITEMS.—For purposes of section 5134 of 
title 31, United States Code, all coins minted under this section 
shall be considered to be numismatic items. 
108 STAT. 2372 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(b) SOURCES OF BULLION.—The Secretary shall obtain silver 
for the coins minted under this section only from stockpiles estab-
lished under the Strategic and Critical Minerals Stock Piling Act. 
(c) DESIGN OF COINS.— 
(1) DESIGN REQUIREMENTS.— 
(A) IN GENERAL.—^The design of the coins minted under 
this section shall be emblematic of community services 
provided by student volunteers. 
(B) DESIGNATION AND INSCRIPTIONS.—On each coin 
minted under this section there shall be— 
(i) a designation of the value of the coin; 
(ii) an inscription of the year "1996"; and 
(iii) inscriptions of the words "Liberty", "In God 
We Trust", "United States of America", and "E Pluribus 
Unum". 
(2) SELECTION.—The design for the coins authorized by 
this section shall be— 
(A) selected by the Secretary after consultation with 
the National Community Service Trust and the Commission 
• 
of Fine Arts; and 
(B) reviewed by the Citizens Commemorative Coin 
Advisory Committee. 
(d) ISSUANCE OF COINS.— 
(1) QUALITY OF COINS.—Coins minted under this section 
shall be issued in uncirculated and proof qualities. 
(2) MINT FACILITY.—Only 1 facility of the United States 
Mint may be used to strike any particular quality of the coins 
minted under this section. 
(3) PERIOD FOR ISSUANCE.—^The Secretary shall issue coins 
minted under this section for a period of not less than 6 
months and not more than 12 months, beginning no later 
than September 1, 1996. 
(e) SALE OF COINS.— 
(1) SALE PRICE.—^The coins issued under this section shall 
be sold by the Secretary at a price equal to the sum of— 
(A) the face value of the coins; 
(B) the surcharge provided in paragraph (4) with 
respect to such coins; and 
(C) the cost of designing and issuing the coins (includ-
ing labor, materials, dies, use of machinery, overhead 
expenses, marketing, and shipping), 
(2) BULK SALES.—The Secretary shall make bulk sales of 
the coins issued under this section available at a reasonable 
discount. 
(3) PREPAID ORDERS.— 
(A) IN GENERAL.—^The Secretary shall accept prepaid 
orders for the coins minted under this section before the 
issuance of such coins. 
(B) DISCOUNT.—Sale prices with respect to prepaid 
orders under subparagraph (A) shall be at a reasonable 
discount. 
(4) SURCHARGES.—^All sales shall include a surcharge of 
$10 per coin. 
(f) GENERAL WAIVER OF PROCUREMENT REGULATIONS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), no 
provision of law governing procurement or public contracts 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2373 
shall be applicable to the procurement of goods and services 
necessary for carrying out the provisions of this section. 
(2) EQUAL EMPLOYMENT OPPORTUNITY.—Paragraph (1) shall 
not relieve any person entering into a contract under the 
authority of this section from complying with any law relating 
to equal employment opportunity. 
(g) DISTRIBUTION OF SURCHARGES.— 
(1) IN GENERAL.—^All surcharges received by the Secretary 
from the sale of coins issued under this section shall be 
promptly paid by the Secretary to the National Community 
Service Trust for the purpose of funding innovative community 
service programs at American universities, including the serv-
ice, research, and teaching activities of faculty and students 
involved in such programs. 
(2) AUDITS.—The Comptroller General of the United States 
shall have the right to examine such books, records, documents, 
and other data of the National Community Service Trust as 
may be related to the expenditures of amounts paid under 
paragraph (1). 
(h) FINANCIAL ASSURANCES.— 
(1) No NET COST TO THE GOVERNMENT.—The Secretary 
shall take such actions as may be necessary to ensure that 
minting and issuing coins under this section will not result 
in any net cost to the United States Government. 
(2) PAYMENT FOR COINS.—^A coin, shall not be issued under 
this section unless the Secretary has received— 
(A) full payment for the coin; 
(B) security satisfactory to the Secretary to indemnify 
the United States for full pa3m:ient; or 
(C) a guarantee of full payment satisfactory to the 
Secretary from a depository institution whose deposits are 
insured by the Federal Deposit Insurance Corporation or 
the National Credit Union Administration Board. 
SEC. 206. ROBERT F. KENNEDY MEMORIAL COMMEMORATIVE COINS. 
31 USC 5112 
(a) COIN SPECIFICATIONS.— 
(1) $1 SILVER COlNS.^The Secretary of the Treasury (here-
after in this section referred to as the "Secretary") shall mint 
and issue not more than 500,000 $1 coins to commemorate 
the life and work of Robert F. Kennedy, which shall— 
(A) weigh 26.73 grams; 
(B) have a diameter of 1.500 inches; and 
(C) contain 90 percent silver and 10 percent copper. 
(2) LEGAL TENDER.—^The coins issued under this section 
shall be legal tender, as provided in section 5103 of title 31, 
United States Code. 
(3) NUMISMATIC ITEMS.—For purposes of section 5134 of 
title 31, United States Code, all coins minted under this section 
shall be considered to be numismatic items. 
(b) SOURCES OF BULLION.—^The Secretary shall obtain silver 
for the coins minted under this section only from stockpiles estab-
lished under the Strategic and Critical Minerals Stock Piling Act. 
(c) DESIGN OF COINS.— 
(1) DESIGN REQUIREMENTS.— 
(A) IN GENERAL.—^The design of the coins minted under 
this section shall be emblematic of the life and work of 
Robert F. Kennedy. 
108 STAT. 2374 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(B) DESIGNATION AND INSCRIPTIONS.—On each coin 
minted under this section there shall be— 
(i) a designation of the value of the coin; 
(ii) an inscription of the year "1998"; and 
(iii) inscriptions of the words "Liberty", "In God 
We Trust", "United States of America", and "E Pluribus 
Unum". 
(2) SELECTION.—^The design for the coins authorized by 
this section shall be— 
(A) selected by the Secretary sifter consultation with 
the Robert F. Kennedy Memorial and the Commission of 
Fine Arts; and 
(B) reviewed by the Citizens Commemorative Coin 
Advisory Committee. 
(d) ISSUANCE OF COINS.— 
(1) QUALITY OF COINS.—Coins minted under this section 
shall be issued in uncirculated and proof qualities. 
(2) MINT FACILITY.—Only 1 facility of the United States 
Mint may be used to strike any particular quality of the coins 
minted under this section. 
(3) PERIOD FOR ISSUANCE.r—The Secretary shall issue coins 
minted under this section for a period of not less than 6 
months and not more than 12 months, beginning no later 
than January 1, 1998. 
(e) SALE OF COINS.— 
(1) SALE PRICE.—^The coins issued under this section shall 
be sold by the Secretary at a price equal to the sum of— 
(A) the face value of the coins; 
(B) the surcharge provided in paragraph (4) with 
respect to such coins; and 
(C) the cost of designing and issuing the coins (includ-
ing labor, materials, dies, use of machinery, overhead 
expenses, marketing, and shipping). 
(2) BULK SALES.—The Secretary shall make bulk sales of 
the coins issued under this section available at a reasonable 
discount. 
(3) PREPAID ORDERS.— 
(A) IN GENERAL.—^The Secretary shall accept prepaid 
orders for the coins minted under this section before the 
issuance of such coins. 
(B) DISCOUNT.—Sale prices with respect to prepaid 
orders under subparagraph (A) shall be at a reasonable 
discount. 
(4) SURCHARGES.—^All sales shall include a surcharge of 
$10 per coin. 
(0 GENERAL WAIVER OF PROCUREMENT REGULATIONS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), no 
provision of law governing procurement or public contracts 
shall be applicable to the procurement of goods and services 
necessary for carrying out the provisions of this section. 
(2) EQUAL EMPLOYMENT OPPORTUNITY.—Paragraph (1) shall 
not relieve any person entering into a contract under the 
authority of this section from complying with any law relating 
to equal employment opportunity. 
(g) DISTRIBUTION OF SURCHARGES.— 
(1) IN GENERAL.—All surcharges received by the Secretary 
from the sale of coins issued under this section shall be 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2375 
promptly paid by the Secretary to the Robert F. Kennedy Memo-
rial for the purpose of improving the endowment of the Robert 
F. Kennedy Memorial. 
(2) AUDITS.—^The Comptroller General of the United States 
shall have the right to examine such books, records, documents, 
and other data of the Robert F. Kennedy Memorial as may 
be related to the expenditures of amounts paid under paragraph 
(1). 
(h) FINANCIAL ASSURANCES.— 
(1) No NET COST TO THE GOVERNMENT.—The Secretary 
shall take such actions as may be necessary to ensure that 
minting and issuing coins under this section will not result 
in any net cost to the United States Government. 
(2) PAYMENT FOR COINS.—^A coin shaU not be issued under 
this section unless the Secretary has received— 
(A) full payment for the coin; 
(B) security satisfactory to the Secretary to indemnify 
the United States for full payment; or 
(C) a guarantee of full payment satisfactory to the 
Secretary from a depository institution whose deposits are 
insured by the Federal Deposit Insurance Corporation or 
the National Credit Union Administration Board. 
SEC. 207. UNITED STATES MIUTARY ACADEMY BICENTENNIAL 31USC 5112 
COMMEMORATIVE COINS. 
"o^ 
(a) COIN SPECIFICATIONS.— 
(1) ONE DOLLAR SILVER COINS.— 
(A) ISSUANCE.—^The Secretary shall issue not more 
than 500,000 $1 coins, which shall weigh 26.73 grams, 
have a diameter of 1.500 inches, and shall contain 90 
percent silver and 10 percent copper. 
(B) DESIGN.—The design of the $1 coins shall be 
emblematic of the United States Military Academy and 
its motto "Duty, Honor, Country". On each such coin there 
shall be a designation of the value of the coin, an inscription 
of the year "2002", and inscriptions of the words "Liberty", 
"In God We Trust", "United States of America", and "E 
Pluribus Unum". 
(2) LEGAL TENDER.—^The coins issued under this section 
shall be legal tender as provided in section 5103 of title 31, 
United States Code. 
(b) SOURCES OF BULLION.—The Secretary shall obtain silver 
for the coins minted under this section only from stockpiles estab-
lished under the Strategic and Critical Materials Stock Piling Act. 
(c) SELECTION OF DESIGN.—The design of the coins minted 
under this section shall be selected by the Secretary after consulta-
tion with the Commission of Fine Arts and the Bicentennial Steer-
ing Group, Association of Graduates, United States Military 
Academy. As required by section 5135 of title 31, United States 
Code, the designs shall also be reviewed by the Citizens Commemo-
rative Coin Advisory Committee. 
(d) ISSUANCE OF THE COINS.— 
(1) QUALITY .\ND MINT FACILITY.—The coins authorized 
under this section may be issued in uncirculated and proof 
qualities and shall be struck at the United States Bullion 
Depository at West Point. 
108 STAT. 2376 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(2) PERIOD FOR ISSUANCE.—The Secretary shall issue coins 
minted under this section during the period beginning on March 
16, 2002, and ending on March 16, 2003. 
(3) SUNSET PROVISION.—No coins shall be minted under 
this section after December 31, 2002. 
(e) SALE OF THE COINS.— 
(1) SALE PRICE.—^The coins issued under this section shall 
be sold by the Secretary at a price equal to the sum of the 
face value of the coins, the surcharge provided in paragraph 
(4) with respect to such coins, and the cost of designing and 
issuing such coins (including labor, materials, dies, use of 
machinery, overhead expenses, marketing, and shipping). 
(2) BULK SALES.—The Secretary shall make bulk sales 
available at a reasonable discount. 
(3) PREPAID ORDERS.—^The Secretary shall accept prepaid 
orders for the coins prior to the issuance of such coins. Sales 
under this paragraph shall be at a reasonable discount. 
(4) SURCHARGE REQUIRED.—All sales shall include a sur-
charge of $10 per coin. 
(D GENERAL WAIVER OF PROCUREMENT REGULATIONS.—NO 
provision of law governing procurement or public contracts shall 
be applicable to the procurement of goods and services necessary 
for carrying out the provisions of this section. Nothing in this 
subsection shall relieve any person entering into a contract under 
the authority of this section from complying with any law relating 
to equal employment opportunity. 
(g) DISTRIBUTION OF SURCHARGES.—The total surcharges col-
lected by the Secretary from the sale of the coins issued under 
this section shall be promptly paid by the Secretary to the Associa-
tion of Graduates, United States Military Academy to assist the 
Association of Graduates' efforts to provide direct support to the 
academic, military, physical, moral, and ethical development pro-
grams of the Corps of Cadets, United States Military Academy. 
(h) AUDITS.—^The Comptroller General of the United States 
shall have the right to examine such books, records, documents, 
and other data of the Association of Graduates, United States 
Military Academy as may be related to the expenditure of amounts 
paid under subsection (g). 
(i) NUMISMATIC PUBLIC ENTERPRISE FUND.—The coins issued 
under this section are subject to the provisions of section 5134 
of title 31, United States Code, relating to the Numismatic Public 
Enterprise Fund. 
(j) FINANCIAL ASSURANCES.— 
(1) No NET COST TO THE GOVERNMENT.—^The Secretary 
shall take all actions necessary to ensure that the issuance 
of the coins authorized by this section shall result in no net 
cost to the United States Government. 
(2) ADEQUATE SECURITY FOR PAYMENT REQUIRED.—^No coin 
shall be issued under this section unless the Secretary has 
received— 
(A) full payment therefor; 
(B) security satisfactory to the Secretary to indemnify 
the United States for full payment; or 
(C) a guarantee of full payment satisfactory to the 
Secretary from a depository institution whose deposits are 
insured by the Federal Deposit Insurance Corporation or 
the National Credit Union Administration Board. 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2377 
SEC. 208. UNITED STATES BOTANIC GARDEN COMMEMORATIVE COINS. 
31 USC 5112 
(a) COIN SPECIFICATIONS.— 
\ 
(1) ONE-DOLLAR SILVER COINS.— 
1 
(A) ISSUANCE.—^The Secretary of the Treasury (here-
after in this section referred to as the "Secretary^') shall 
mint and issue not more than 500,000 $1 coins, which 
shall weigh 26.73 grams, have a diameter of 1.500 inches, 
and contain 90 percent silver and 10 percent copper. 
(B) DESIGN.—^The design of the coins issued under 
this section shall be a rose, the national floral emblem, 
and a frontal view of the French facade of the United 
States Botanic Garden. On each coin there shall be a 
designation of the value of the coin, an inscription of the 
years "1820-1995", and inscriptions of the words "Liberty", 
'^In God We Trust", "United States of America", and "E 
Pluribus Unum". 
(2) LEGAL TENDER.—^The coins issued under this section 
shall be legal tender, as provided in section 5103 of title 31, 
United States Code. 
(3) NUMISMATIC ITEMS.—For purposes of section 5134 of 
title 31, United States Code, all coins minted under this section 
shall be considered to be numismatic items. 
(b) SOURCE OF BULLION.—The Secretary shall obtain silver 
for the coins minted under this section only from stockpiles estab-
lished under the Strategic and Critical Materials Stock Piling Act. 
(c) SELECTION OF DESIGN.—The design for the coins minted 
under this section shall be— 
(1) selected by the Secretary after consultation with the 
National Fund for the United States Botanic Garden and the 
Commission of Fine Arts; and 
(2) reviewed by the Citizens Commemorative Coin Advisory 
Committee. 
(d) ISSUANCE OF COINS.— 
(1) QUALITY OF COINS.—Coins minted under this section 
may be issued in uncirculated and proof qualities. 
(2) MINT FACILITi^—Not more than 1 facility of the United 
States Mint may be used to strike any particular quality of 
the coins minted under this section. 
(3) PERIOD OF ISSUANCE.—^The Secretary may issue coins 
minted under this section during the period beginning on Janu-
ary 1, 1997, and ending on December 31, 1997. 
(e) SALE OF COINS.— 
(1) SALE PRICE.—The coins authorized under this section 
shall be sold by the Secretary at a price equal to the sum 
of the face value of the coins, the surcharge provided in para-
graph (4) with respect to such coins, and the cost of designing 
and issuing the coins (including labor, materials, dies, use 
of machinery, overhead expenses, marketing, and shipping). 
(2) BULK SALES.—The Secretary shall make bulk sales 
available at a reasonable discount. 
(3) PREPAID ORDERS.—^The Secretary shall accept prepaid 
orders for the coins authorized under this section prior to 
the issuance of such coins. Sales under this paragraph shall 
be at a reasonable discount. 
(4) SURCHARGE REQUIRED.—All sales shall include a sur-
charge of $10 per coin. 
(f) GENERAL WAIVER OF PROCUREMENT REGULATIONS.— 
108 STAT. 2378 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(1) IN GENERAL.—Except as provided in paragraph (2), no 
provision of law governing procurement or public contracts 
shall be applicable to the procurement of goods and services 
necessary for carrying out the provisions of this section. 
(2) EQUAL EMPLOYMENT OPPORTUNITY.—Paragraph (1) shall 
not relieve any person entering into a contract under the 
authority of this section from complying with any law relating 
to equal employment opportunity. 
(g) DISTRIBUTION OF SURCHARGES.^AII surcharges received by 
the Secretary from the sale of coins issued under this section 
shall be promptly paid by the Secretary to the National Fund 
for the United States Botanic Garden. 
(h) AUDITS.—The Comptroller General of the United States 
shall have the right to examine such books, records, documents, 
and other data of the National Fund for the United States Botanic 
Garden as may be related to the expenditures of amounts paid 
under subsection (g). 
(i) FINANCIAL ASSURANCES.— 
(1) No 
NET COST TO THE GOVERNMENT.—The Secretary 
shall take all actions necessary to ensure that the issuance 
of the coins authorized by this section shall result in no net 
cost to the United States Government. 
(2) ADEQUATE SECURITY FOR PAYMENT REQUIRED.—No coin 
J shall be issued under this section unless the Secretary has 
received— 
(A) full payment therefor; 
(B) security satisfactory to the Secretary to indemnify 
the United States for full payment; or 
(C) a guarantee of full payment satisfactory to the 
Secretary from a depository institution whose deposits are 
insured by the Federal Deposit Insurance Corporation or 
the National Credit Union Administration Board. 
SEC. 209. MOUNT RUSHMORE COMMEMORATIVE COINS. 
(a) DISTRIBUTION OF SURCHARGES.—Section 8 of the Mount 
Rushmore Commemorative Coin Act (104 Stat. 314; 31 U.S.C. 5112 
note) is amended by striking paragraphs (1) and (2) and inserting 
the following: 
"(1) the first $18,750,000 shall be paid during fiscal year 
1994 by the Secretary to the Society to assist the Society's 
efforts to improve, enlarge, and renovate the Mount Rushmore 
National Memorial; and 
"(2) the remainder shall be returned to the Federal Treas-
ury for purposes of reducing the national debt.". 
31 use 5112 
(b) RETROACTIVE EFFECT.—If, prior to the enactment of this 
"°*®- 
Act, any amount of surcharges have been received by the Secretary 
of the Treasury and paid into the United States Treasury pursuant 
to section 8(1) of the Mount Rushmore Commemorative Coin Act, 
as in effect prior to the enactment of this Act, that amount shall 
be paid out of the Treasury to the extent necessary to comply 
with section 8(1) of the Mount Rushmore Commemorative Coin 
Act, as in efiiect after the enactment of this Act. Amounts paid 
pursuant to the preceding sentence shall be out of funds not other-
wise appropriated. 
31 use 5112 
(c) NUMISMATIC OPERATING PROFITS.—Nothing in this section 
"°^- 
shall iDe construed to affect the Secretary of the Treasury's right 
to derive operating profits from numismatic programs for use in 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2379 
supporting the United States Mint's numismatic operations and 
programs, or to allow the distribution of operating profits from 
the Numismatic Public Enterprise Fund to a recipient organization 
under any numismatic program. 
SEC. 210. STUDY AND REPORT ON THE UNITED STATES FINANCIAL 
12 USC 1811 
SERVICES SYSTEM. 
note 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of the Treasury (hereafter 
in this section referred to as the "Secretary") shall, after con-
sultation with the Advisory Commission on Financial Services 
established under subsection (b), and consultation in accordance 
with paragraph (3), conduct a study of matters relating to 
the strengths and weaknesses of the United States financial 
services system in meeting the needs of the system's users, 
including the needs o
f
-
— 
(A) individual consumers and households; 
(B) communities; 
(C) agriculture; 
(D) small-, medium-, and large-sized businesses; 
(E) governmental and nonprofit entities; and 
(F) exporters and other users of international financial 
services. 
(2) MATTERS STUDIED.—The study required under para-
graph (1) shall include consideration of— 
(A) the changes underway in the national and inter-
national economies and the financial services industry, and 
how those changes affect the financial services system's 
ability to efficiently meet the needs of the national economy 
and the system's users during the next 10 years and 
beyond; and 
(B) the adequacy of existing statutes and regulations, 
and the existing regulatory structure, to meet the needs 
of the financial services system's users effectively, effi-
ciently, and without unfair, anticompetitive, or discrimina-
tory practices. 
(3) CONSULTATION.—Consultation in accordance with this 
paragraph means consultation with— 
(A) the Board of Grovemors of the Federal Reserve 
System; 
(B) the Commodity Futures Trading Commission; 
(C) the Comptroller of the Currency; 
(D) the Director of the Office of Thrift Supervision; 
(E) the Federal Deposit Insurance Corporation; 
(F) the Secretary of the Department of Housing and 
Urban Development; 
(G) the Securities and Exchange Commission; 
(H) the Director of the Congressional Budget Office; 
and 
(I) the Comptroller General of the United States. 
(b) ADVISORY COMMISSION ON FINANCIAL SERVICES.— 
(1) ESTABLISHME]'^.—There is established the Advisory 
Commission on Financial Services (hereafter in this section 
referred to as the "Advisory Commission"). 
(2) MEMBERSHIP OF COMMISSION.—^The Advisory Com-
mission— 
108 STAT. 2380 
PUBLIC LAW 103-328—SEPT. 29, 1994 
(A) shall consist of not less than 9 nor more than 
14 members appointed by the Secretary from among 
individuals— 
(i) who are— 
(I) users of the financial services system; or 
(II) experts in finance or on the financial serv-
ices system; and 
(ii) who are not employees of the Federal Grovern-
ment; and 
(B) shall include representatives of business, agri-
culture, and consumers. 
(3) CHAIRPERSON.—The Secretary or the Secretary's des-
ignee shall serve as Chairperson of the Advisory Commission. 
(4) TRAVEL EXPENSES.—Members of the Advisory Commis-
sion shall be allowed travel expenses, including per diem in 
lieu of subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business 
in performing services for the Advisory Commission. 
(5) TERMINATION.—The Advisory Commission shall termi-
nate 30 days after the date of submission of the report required 
under subsection (d). 
(c) RECOMMENDATIONS.—Based on the results of the study con-
ducted under subsection (a), the Secretary shall develop such rec-
ommendations as may be appropriate for changes in statutes, 
regulations, and policies to improve the operation of the financial 
services system, including changes to better— 
(1) meet the needs of, and assure access to the system 
for, current and potential users; 
(2) promote economic growth; 
(3) protect consumers; 
(4) promote competition and efficiency; 
(5) avoid risk to the taxpayers; 
(6) control systemic risk; and 
(7) eliminate discrimination. 
(d) REPORT.—^Not later than 15 months after the date of enact-
ment of this Act, the Secretary shall submit to the President pro 
tempore of the Senate and the Speaker of the House of Representa-
tives a report describing the study conducted under subsection 
(a) and any recommendations developed under subsection (c). 
SEC. 211. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS. 
(a) IN GENERAL.—Section 5146 of the Revised Statutes (12 
U.S.C. 72) is amended in the 1st sentence, by striking "two thirds" 
and inserting "a majority". 
PUBLIC LAW 103-328—SEPT. 29, 1994 
108 STAT. 2381 
(b) PROVISION REPEAL.—Effective on the date of enactment 
Effective date, 
of the Riegle Community Development and Regulatory Improvement 
Act of 1994, this section and the amendment made by this section 
are repealed. 
Approved September 29, 1994. 
LEGISLATIVE HISTORY—H.R. 3841 (S. 1963): 
HOUSE REPORTS: Nos. 103-448 (Comm. on Banking, Finance and Urban Affairs) 
and 103-651 (Comm. of Conference). 
SENATE REPORTS: No. 103-240 accompanying S. 1963 (Comm. on Banking, Housing, 
and Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Mar. 22, considered and passed House. 
Apr. 25,26, H.R. 3841 considered and passed Senate, amended, in lieu of S. 1963. 
Aug. 4, House agreed to conference report. 
Sept. 13, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994): 
Sept. 29, Presidential remarks.