Financial Services Regulatory Relief Act of 2006
PL 109-351 (S.2856), enacted 10/13/2006

120 STAT. 1966
PUBLIC LAW 109–351—OCT. 13, 2006
Public Law 109–351
109th Congress
An Act
To provide regulatory relief and improve productivity for insured depository institu-
tions, and for other purposes.
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 ‘‘Financial
Services Regulatory Relief Act of 2006’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I—BROKER RELIEF
Sec. 101. Joint rulemaking required for revised definition of broker in the Securi-
ties Exchange Act of 1934.
TITLE II—MONETARY POLICY PROVISIONS
Sec. 201. Authorization for the Federal Reserve to pay interest on reserves.
Sec. 202. Increased flexibility for the Federal Reserve Board to establish reserve re-
quirements.
Sec. 203. Effective date.
TITLE III—NATIONAL BANK PROVISIONS
Sec. 301. Voting in shareholder elections.
Sec. 302. Simplifying dividend calculations for national banks.
Sec. 303. Repeal of obsolete limitation on removal authority of the Comptroller of
the Currency.
Sec. 304. Repeal of obsolete provision in the Revised Statutes.
Sec. 305. Enhancing the authority for banks to make community development in-
vestments.
TITLE IV—SAVINGS ASSOCIATION PROVISIONS
Sec. 401. Parity for savings associations under the Securities Exchange Act of 1934
and the Investment Advisers Act of 1940.
Sec. 402. Repeal of overlapping rules governing purchased mortgage servicing
rights.
Sec. 403. Clarifying citizenship of Federal savings associations for Federal court ju-
risdiction.
Sec. 404. Repeal of limitation on loans to one borrower.
TITLE V—CREDIT UNION PROVISIONS
Sec. 501. Leases of land on Federal facilities for credit unions.
Sec. 502. Increase in general 12-year limitation of term of Federal credit union
loans to 15 years.
Sec. 503. Check cashing and money transfer services offered within the field of
membership.
Sec. 504. Clarification of definition of net worth under certain circumstances for
purposes of prompt corrective action.
Sec. 505. Amendments relating to nonfederally insured credit unions.
12 USC 1811
note.
Financial
Services
Regulatory Relief
Act of 2006.
Oct. 13, 2006
[S. 2856]
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120 STAT. 1967
PUBLIC LAW 109–351—OCT. 13, 2006
TITLE VI—DEPOSITORY INSTITUTION PROVISIONS
Sec. 601. Reporting requirements relating to insider lending.
Sec. 602. Investments by insured savings associations in bank service companies
authorized.
Sec. 603. Authorization for member bank to use pass-through reserve accounts.
Sec. 604. Streamlining reports of condition.
Sec. 605. Expansion of eligibility for 18-month examination schedule for community
banks.
Sec. 606. Streamlining depository institution merger application requirements.
Sec. 607. Nonwaiver of privileges.
Sec. 608. Clarification of application requirements for optional conversion for Fed-
eral savings associations.
Sec. 609. Exemption from disclosure of privacy policy for accountants.
Sec. 610. Inflation adjustment for the small depository institution exception under
the Depository Institution Management Interlocks Act.
Sec. 611. Modification to cross marketing restrictions.
TITLE VII—BANKING AGENCY PROVISIONS
Sec. 701. Statute of limitations for judicial review of appointment of a receiver for
depository institutions.
Sec. 702. Enhancing the safety and soundness of insured depository institutions.
Sec. 703. Cross guarantee authority.
Sec. 704. Golden parachute authority and nonbank holding companies.
Sec. 705. Amendments relating to change in bank control.
Sec. 706. Amendment to provide the Federal Reserve Board with discretion con-
cerning the imputation of control of shares of a company by trustees.
Sec. 707. Interagency data sharing.
Sec. 708. Clarification of extent of suspension, removal, and prohibition authority
of Federal banking agencies in cases of certain crimes by institution-af-
filiated parties.
Sec. 709. Protection of confidential information received by Federal banking regu-
lators from foreign banking supervisors.
Sec. 710. Prohibition on participation by convicted individuals.
Sec. 711. Coordination of State examination authority.
Sec. 712. Deputy Director; succession authority for Director of the Office of Thrift
Supervision.
Sec. 713. Office of Thrift Supervision representation on Basel Committee on Bank-
ing Supervision.
Sec. 714. Federal Financial Institutions Examination Council.
Sec. 715. Technical amendments relating to insured institutions.
Sec. 716. Clarification of enforcement authority.
Sec. 717. Federal banking agency authority to enforce deposit insurance conditions.
Sec. 718. Receiver or conservator consent requirement.
Sec. 719. Acquisition of FICO scores.
Sec. 720. Elimination of criminal indictments against receiverships.
Sec. 721. Resolution of deposit insurance disputes.
Sec. 722. Recordkeeping.
Sec. 723. Preservation of records.
Sec. 724. Technical amendments to information sharing provision in the Federal
Deposit Insurance Act.
Sec. 725. Technical and conforming amendments relating to banks operating under
the Code of Law for the District of Columbia.
Sec. 726. Technical corrections to the Federal Credit Union Act.
Sec. 727. Repeal of obsolete provisions of the Bank Holding Company Act of 1956.
Sec. 728. Development of model privacy forms.
TITLE VIII—FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
Sec. 801. Exception for certain bad check enforcement programs.
Sec. 802. Other amendments.
TITLE IX—CASH MANAGEMENT MODERNIZATION
Sec. 901. Collateral modernization.
TITLE X—STUDIES AND REPORTS
Sec. 1001. Study and report by the Comptroller General on the currency trans-
action report filing system.
Sec. 1002. Study and report on institution diversity and consolidation.
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120 STAT. 1968
PUBLIC LAW 109–351—OCT. 13, 2006
TITLE I—BROKER RELIEF
SEC. 101. JOINT RULEMAKING REQUIRED FOR REVISED DEFINITION
OF BROKER IN THE SECURITIES EXCHANGE ACT OF 1934.
(a) FINAL RULES REQUIRED.—
(1) AMENDMENT
TO
SECURITIES
EXCHANGE
ACT.—Section
3(a)(4) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(4)) is amended by adding at the end the following:
‘‘(F) JOINT RULEMAKING REQUIRED.—The Commission
and the Board of Governors of the Federal Reserve System
shall jointly adopt a single set of rules or regulations to
implement the exceptions in subparagraph (B).’’.
(2) TIMING.—Not later than 180 days after the date of
the enactment of this Act, the Securities and Exchange Commis-
sion (in this section referred to as the ‘‘Commission’’) and the
Board of Governors of the Federal Reserve System (hereafter
in this section referred to as the ‘‘Board’’) shall jointly issue
a proposed single set of rules or regulations to define the
term ‘‘broker’’ in accordance with section 3(a)(4) of the Securities
Exchange Act of 1934, as amended by this subsection.
(3) RULEMAKING
SUPERSEDES
PREVIOUS
RULEMAKING.—A
final single set of rules or regulations jointly adopted in accord-
ance with this section shall supersede any other proposed or
final rule issued by the Commission on or after the date of
enactment of section 201 of the Gramm-Leach-Bliley Act with
regard to the exceptions to the definition of a broker under
section 3(a)(4)(B) of the Securities Exchange Act of 1934. No
such other rule, whether or not issued in final form, shall
have any force or effect on or after that date of enactment.
(b) CONSULTATION.—Prior to jointly adopting the single set
of final rules or regulations required by this section, the Commission
and the Board shall consult with and seek the concurrence of
the Federal banking agencies concerning the content of such rule-
making in implementing section 3(a)(4)(B) of the Securities
Exchange Act of 1934, as amended by this section and section
201 of the Gramm-Leach-Bliley Act.
(c) DEFINITION.—For purposes of this section, the term ‘‘Federal
banking agencies’’ means the Office of the Comptroller of the Cur-
rency, the Office of Thrift Supervision, and the Federal Deposit
Insurance Corporation.
TITLE II—MONETARY POLICY
PROVISIONS
SEC. 201. AUTHORIZATION FOR THE FEDERAL RESERVE TO PAY
INTEREST ON RESERVES.
(a) IN GENERAL.—Section 19(b) of the Federal Reserve Act
(12 U.S.C. 461(b)) is amended by adding at the end the following:
‘‘(12) EARNINGS ON BALANCES.—
‘‘(A) IN GENERAL.—Balances maintained at a Federal
Reserve bank by or on behalf of a depository institution
may receive earnings to be paid by the Federal Reserve
bank at least once each calendar quarter, at a rate or
rates not to exceed the general level of short-term interest
rates.
Deadline.
15 USC 78c note.
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120 STAT. 1969
PUBLIC LAW 109–351—OCT. 13, 2006
‘‘(B) REGULATIONS
RELATING
TO
PAYMENTS
AND
DIS-
TRIBUTIONS.—The 
Board 
may 
prescribe 
regulations
concerning—
‘‘(i) the payment of earnings in accordance with
this paragraph;
‘‘(ii) the distribution of such earnings to the deposi-
tory institutions which maintain balances at such
banks, or on whose behalf such balances are main-
tained; and
‘‘(iii) the responsibilities of depository institutions,
Federal Home Loan Banks, and the National Credit
Union Administration Central Liquidity Facility with
respect to the crediting and distribution of earnings
attributable to balances maintained, in accordance with
subsection (c)(1)(A), in a Federal Reserve bank by any
such entity on behalf of depository institutions.
‘‘(C) DEPOSITORY INSTITUTIONS DEFINED.—For purposes
of this paragraph, the term ‘depository institution’, in addi-
tion to the institutions described in paragraph (1)(A),
includes any trust company, corporation organized under
section 25A or having an agreement with the Board under
section 25, or any branch or agency of a foreign bank
(as defined in section 1(b) of the International Banking
Act of 1978).’’.
(b) CONFORMING
AMENDMENT.—Section 19 of the Federal
Reserve Act (12 U.S.C. 461) is amended—
(1) in subsection (b)(4)—
(A) by striking subparagraph (C); and
(B) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(2) in subsection (c)(1)(A), by striking ‘‘subsection (b)(4)(C)’’
and inserting ‘‘subsection (b)’’.
SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RESERVE
BOARD TO ESTABLISH RESERVE REQUIREMENTS.
Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C.
461(b)(2)(A)) is amended—
(1) in clause (i), by striking ‘‘the ratio of 3 per centum’’
and inserting ‘‘a ratio of not greater than 3 percent (and which
may be zero)’’; and
(2) in clause (ii), by striking ‘‘and not less than 8 per
centum,’’ and inserting ‘‘(and which may be zero),’’.
SEC. 203. EFFECTIVE DATE.
The amendments made by this title shall take effect October
1, 2011.
TITLE III—NATIONAL BANK
PROVISIONS
SEC. 301. VOTING IN SHAREHOLDER ELECTIONS.
Section 5144 of the Revised Statutes of the United States
(12 U.S.C. 61) is amended—
(1) by striking ‘‘or to cumulate’’ and inserting ‘‘or, if so
provided by the articles of association of the national bank,
to cumulate’’; and
12 USC 461 note.
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120 STAT. 1970
PUBLIC LAW 109–351—OCT. 13, 2006
(2) by striking the comma after ‘‘his shares shall equal’’.
SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL
BANKS.
(a) IN GENERAL.—Section 5199 of the Revised Statutes of the
United States (12 U.S.C. 60) is amended to read as follows:
‘‘SEC. 5199. NATIONAL BANK DIVIDENDS.
‘‘(a) IN GENERAL.—Subject to subsection (b), the directors of
any national bank may declare a dividend of so much of the undi-
vided profits of the bank as the directors judge to be expedient.
‘‘(b) APPROVAL REQUIRED UNDER CERTAIN CIRCUMSTANCES.—
A national bank may not declare and pay dividends in any year
in excess of an amount equal to the sum of the total of the net
income of the bank for that year and the retained net income
of the bank for the preceding 2 years, minus the sum of any
transfers required by the Comptroller of the Currency and any
transfers required to be made to a fund for the retirement of
any preferred stock, unless the Comptroller of the Currency
approves the declaration and payment of dividends in excess of
such amount.’’.
(b) CLERICAL AMENDMENT.—The table of sections for chapter
three of title LXII of the Revised Statutes of the United States
is amended by striking the item relating to section 5199 and
inserting the following:
‘‘5199. National bank dividends.’’.
SEC. 
303. 
REPEAL 
OF 
OBSOLETE 
LIMITATION 
ON 
REMOVAL
AUTHORITY OF THE COMPTROLLER OF THE CURRENCY.
Section 8(e)(4) of the Federal Deposit Insurance Act (12 U.S.C.
1818(e)(4)) is amended by striking the 5th sentence.
SEC. 304. REPEAL OF OBSOLETE PROVISION IN THE REVISED STAT-
UTES.
Section 5143 of the Revised Statutes of the United States
(12 U.S.C. 59) is amended to read as follows:
‘‘SEC. 5143. REDUCTION OF CAPITAL.
‘‘(a) IN GENERAL.—Subject to the approval of the Comptroller
of the Currency, a national banking association may, by a vote
of shareholders owning, in the aggregate, two-thirds of its capital
stock, reduce its capital.
‘‘(b) SHAREHOLDER DISTRIBUTIONS AUTHORIZED.—As part of its
capital reduction plan approved in accordance with subsection (a),
and with the affirmative vote of shareholders owning at least two
thirds of the shares of each class of its stock outstanding (each
voting as a class), a national banking association may distribute
cash or other assets to its shareholders.’’.
SEC. 305. ENHANCING THE AUTHORITY FOR BANKS TO MAKE COMMU-
NITY DEVELOPMENT INVESTMENTS.
(a) NATIONAL BANKS.—The paragraph designated as the ‘‘Elev-
enth.’’ of section 5136 of the Revised Statutes of the United States
(12 U.S.C. 24) is amended to read as follows:
‘‘Eleventh. To make investments directly or indirectly, each
of which promotes the public welfare by benefiting primarily low-
and moderate-income communities or families (such as by providing
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120 STAT. 1971
PUBLIC LAW 109–351—OCT. 13, 2006
housing, services, or jobs). An association shall not make any such
investment if the investment would expose the association to unlim-
ited liability. The Comptroller of the Currency shall limit an associa-
tion’s investments in any 1 project and an association’s aggregate
investments under this paragraph. An association’s aggregate
investments under this paragraph shall not exceed an amount
equal to the sum of 5 percent of the association’s capital stock
actually paid in and unimpaired and 5 percent of the association’s
unimpaired surplus fund, unless the Comptroller determines by
order that the higher amount will pose no significant risk to the
affected deposit insurance fund, and the association is adequately
capitalized. In no case shall an association’s aggregate investments
under this paragraph exceed an amount equal to the sum of 15
percent of the association’s capital stock actually paid in and
unimpaired and 15 percent of the association’s unimpaired surplus
fund. The foregoing standards and limitations apply to investments
under this paragraph made by a national bank directly and by
its subsidiaries.’’.
(b) CONFORMING AMENDMENTS FOR STATE MEMBER BANKS.—
The 23rd undesignated paragraph of section 9 of the Federal
Reserve Act (12 U.S.C. 338a) is amended to read as follows:
‘‘(23) A State member bank may make investments directly
or indirectly, each of which promotes the public welfare by
benefiting primarily low- and moderate-income communities
or families (such as by providing housing, services, or jobs),
to the extent permissible under State law. A State member
bank shall not make any such investment if the investment
would expose the State member bank to unlimited liability.
The Board shall limit a State member bank’s investment in
any 1 project and a State member bank’s aggregate investments
under this paragraph. The aggregate amount of investments
of any State member bank under this paragraph may not
exceed an amount equal to the sum of 5 percent of the State
member bank’s capital stock actually paid in and unimpaired
and 5 percent of the State member bank’s unimpaired surplus,
unless the Board determines, by order, that a higher amount
will pose no significant risk to the affected deposit insurance
fund; and the State member bank is adequately capitalized.
In no case shall the aggregate amount of investments of any
State member bank under this paragraph exceed an amount
equal to the sum of 15 percent of the State member bank’s
capital stock actually paid in and unimpaired and 15 percent
of the State member bank’s unimpaired surplus. The foregoing
standards and limitations apply to investments under this para-
graph made by a State member bank directly and by its subsidi-
aries.’’.
TITLE IV—SAVINGS ASSOCIATION
PROVISIONS
SEC. 401. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE SECURI-
TIES EXCHANGE ACT OF 1934 AND THE INVESTMENT
ADVISERS ACT OF 1940.
(a) SECURITIES EXCHANGE ACT OF 1934.—
(1) DEFINITION OF BANK.—Section 3(a)(6) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended—
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120 STAT. 1972
PUBLIC LAW 109–351—OCT. 13, 2006
(A) in subparagraph (A), by inserting ‘‘or a Federal
savings association, as defined in section 2(5) of the Home
Owners’ Loan Act’’ after ‘‘a banking institution organized
under the laws of the United States’’; and
(B) in subparagraph (C)—
(i) by inserting ‘‘or savings association, as defined
in section 2(4) of the Home Owners’ Loan Act’’ after
‘‘banking institution’’; and
(ii) by inserting ‘‘or savings associations’’ after
‘‘having supervision over banks’’.
(2) INCLUSION OF OTS UNDER THE DEFINITION OF APPRO-
PRIATE REGULATORY AGENCY FOR CERTAIN PURPOSES.—Section
3(a)(34) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(34)) is amended—
(A) in subparagraph (A)—
(i) in clause (ii), by striking ‘‘(i) or (iii)’’ and
inserting ‘‘(i), (iii), or (iv)’’;
(ii) in clause (iii), by striking ‘‘and’’ at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
‘‘(iv) the Director of the Office of Thrift Super-
vision, in the case of a savings association (as defined
in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))), the deposits of which are insured
by the Federal Deposit Insurance Corporation, a sub-
sidiary or a department or division of any such savings
association, or a savings and loan holding company;
and’’;
(B) in subparagraph (B)—
(i) in clause (ii), by striking ‘‘(i) or (iii)’’ and
inserting ‘‘(i), (iii), or (iv)’’;
(ii) in clause (iii), by striking ‘‘and’’ at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
‘‘(iv) the Director of the Office of Thrift Super-
vision, in the case of a savings association (as defined
in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))), the deposits of which are insured
by the Federal Deposit Insurance Corporation, or a
subsidiary of any such savings association, or a savings
and loan holding company; and’’;
(C) in subparagraph (C)—
(i) in clause (ii), by striking ‘‘(i) or (iii)’’ and
inserting ‘‘(i), (iii), or (iv)’’;
(ii) in clause (iii), by striking ‘‘and’’ at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
‘‘(iv) the Director of the Office of Thrift Super-
vision, in the case of a savings association (as defined
in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))), the deposits of which are insured
by the Federal Deposit Insurance Corporation, a
savings and loan holding company, or a subsidiary
of a savings and loan holding company when the appro-
priate regulatory agency for such clearing agency is
not the Commission; and’’;
(D) in subparagraph (D)—
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120 STAT. 1973
PUBLIC LAW 109–351—OCT. 13, 2006
(i) in clause (ii), by striking ‘‘and’’ at the end;
(ii) by redesignating clause (iii) as clause (iv); and
(iii) by inserting after clause (ii) the following:
‘‘(iii) the Director of the Office of Thrift Super-
vision, in the case of a savings association (as defined
in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))) the deposits of which are insured
by the Federal Deposit Insurance Corporation; and’’;
(E) in subparagraph (F)—
(i) by redesignating clauses (ii), (iii), and (iv) as
clauses (iii), (iv), and (v), respectively; and
(ii) by inserting after clause (i) the following:
‘‘(ii) the Director of the Office of Thrift Supervision,
in the case of a savings association (as defined in
section 3(b) of the Federal Deposit Insurance Act (12
U.S.C. 1813(b))), the deposits of which are insured
by the Federal Deposit Insurance Corporation; and’’;
(F) by moving subparagraph (H) and inserting such
subparagraph immediately after subparagraph (G); and
(G) by adding at the end of the undesignated matter
at the end the following: ‘‘As used in this paragraph, the
term ‘savings and loan holding company’ has the same
meaning as in section 10(a) of the Home Owners’ Loan
Act (12 U.S.C. 1467a(a)).’’.
(3) CONFORMING EXEMPTION TO REPORTING REQUIREMENT.—
Section 23(b)(1) of the Securities Exchange Act of 1934 (15
U.S.C. 78w(b)(1)) is amended by inserting ‘‘other than the Office
of Thrift Supervision,’’ before ‘‘shall each’’.
(b) INVESTMENT ADVISERS ACT OF 1940.—
(1) DEFINITION OF BANK.—Section 202(a)(2) of the Invest-
ment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) is amended—
(A) in subparagraph (A), by inserting ‘‘or a Federal
savings association, as defined in section 2(5) of the Home
Owners’ Loan Act’’ after ‘‘a banking institution organized
under the laws of the United States’’; and
(B) in subparagraph (C)—
(i) by inserting ‘‘, savings association, as defined
in section 2(4) of the Home Owners’ Loan Act,’’ after
‘‘banking institution’’; and
(ii) by inserting ‘‘or savings associations’’ after
‘‘having supervision over banks’’.
(2) CONFORMING AMENDMENTS.—Section 210A of the Invest-
ment Advisers Act of 1940 (15 U.S.C. 80b–10a) is amended
in each of subsections (a)(1)(A)(i), (a)(1)(B), (a)(2), and (b), by
striking ‘‘bank holding company’’ each place that term appears
and inserting ‘‘bank holding company or savings and loan
holding company’’.
(c) CONFORMING AMENDMENT TO THE INVESTMENT COMPANY
ACT OF 1940.—Section 10(c) of the Investment Company Act of
1940 (15 U.S.C. 80a–10(c)) is amended by inserting after ‘‘1956)’’
the following: ‘‘or any one savings and loan holding company,
together with its affiliates and subsidiaries (as such terms are
defined in section 10 of the Home Owners’ Loan Act),’’.
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120 STAT. 1974
PUBLIC LAW 109–351—OCT. 13, 2006
SEC. 402. REPEAL OF OVERLAPPING RULES GOVERNING PURCHASED
MORTGAGE SERVICING RIGHTS.
Section 5(t) of the Home Owners’ Loan Act (12 U.S.C. 1464(t))
is amended—
(1) by striking paragraph (4) and inserting the following:
‘‘(4) [Repealed].’’; and
(2) in paragraph (9)(A), by striking ‘‘intangible assets, plus’’
and all that follows through the period at the end and inserting
‘‘intangible assets.’’.
SEC. 403. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS ASSOCIA-
TIONS FOR FEDERAL COURT JURISDICTION.
Section 5 of the Home Owners’ Loan Act (12 U.S.C. 1464)
is amended by adding at the end the following:
‘‘(x) HOME STATE CITIZENSHIP.—In determining whether a Fed-
eral court has diversity jurisdiction over a case in which a Federal
savings association is a party, the Federal savings association shall
be considered to be a citizen only of the State in which such
savings association has its home office.’’.
SEC. 404. REPEAL OF LIMITATION ON LOANS TO ONE BORROWER.
Section 5(u)(2)(A) of the Home Owners’ Loan Act (12 U.S.C.
1464(u)(2)(A)) is amended—
(1) in clause (i)—
(A) by striking ‘‘for any’’ and inserting ‘‘For any’’; and
(B) by striking ‘‘; or’’ and inserting a period; and
(2) in clause (ii)—
(A) by striking ‘‘to develop domestic’’ and inserting
‘‘To develop domestic’’;
(B) by striking subclause (I); and
(C) by redesignating subclauses (II) through (V) as
subclauses (I) through (IV), respectively.
TITLE V—CREDIT UNION PROVISIONS
SEC. 501. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT
UNIONS.
(a) IN GENERAL.—Section 124 of the Federal Credit Union
Act (12 U.S.C. 1770) is amended—
(1) by striking ‘‘Upon application by any credit union’’
and inserting ‘‘Notwithstanding any other provision of law,
upon application by any credit union’’;
(2) by inserting ‘‘on lands reserved for the use of, and
under the exclusive or concurrent jurisdiction of, the United
States or’’ after ‘‘officer or agency of the United States charged
with the allotment of space’’;
(3) by inserting ‘‘lease land or’’ after ‘‘such officer or agency
may in his or its discretion’’; and
(4) by inserting ‘‘or the facility built on the lease land’’
after ‘‘credit union to be served by the allotment of space’’.
(b) CLERICAL AMENDMENT.—The section heading for section
124 of the Federal Credit Union Act (12 U.S.C. 1770) is amended
by inserting ‘‘OR FEDERAL LAND’’ after ‘‘BUILDINGS’’.
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PUBLIC LAW 109–351—OCT. 13, 2006
SEC. 502. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF
FEDERAL CREDIT UNION LOANS TO 15 YEARS.
Section 107(5) of the Federal Credit Union Act (12 U.S.C.
1757(5)) is amended in the matter preceding subparagraph (A),
by striking ‘‘to make loans, the maturities of which shall not exceed
twelve years’’ and inserting ‘‘to make loans, the maturities of which
shall not exceed 15 years,’’.
SEC. 503. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED
WITHIN THE FIELD OF MEMBERSHIP.
Section 107(12) of the Federal Credit Union Act (12 U.S.C.
1757(12)) is amended to read as follows:
‘‘(12) in accordance with regulations prescribed by the
Board—
‘‘(A) to sell, to persons in the field of membership,
negotiable checks (including travelers checks), money
orders, and other similar money transfer instruments
(including international and domestic electronic fund trans-
fers); and
‘‘(B) to cash checks and money orders and receive inter-
national and domestic electronic fund transfers for persons
in the field of membership for a fee;’’.
SEC. 504. CLARIFICATION OF DEFINITION OF NET WORTH UNDER CER-
TAIN CIRCUMSTANCES FOR PURPOSES OF PROMPT
CORRECTIVE ACTION.
Section 216(o)(2)(A) of the Federal Credit Union Act (12 U.S.C.
1790d(o)(2)(A)) is amended—
(1) by inserting ‘‘the’’ before ‘‘retained earnings balance’’;
and
(2) by inserting ‘‘, together with any amounts that were
previously retained earnings of any other credit union with
which the credit union has combined’’ before the semicolon
at the end.
SEC. 505. AMENDMENTS RELATING TO NONFEDERALLY INSURED
CREDIT UNIONS.
(a) IN GENERAL.—Subsection (a) of section 43 of the Federal
Deposit Insurance Act (12 U.S.C. 1831t(a)) is amended by adding
at the end the following new paragraph:
‘‘(3) ENFORCEMENT BY APPROPRIATE STATE SUPERVISOR.—
Any appropriate State supervisor of a private deposit insurer,
and any appropriate State supervisor of a depository institution
which receives deposits that are insured by a private deposit
insurer, may examine and enforce compliance with this sub-
section under the applicable regulatory authority of such super-
visor.’’.
(b) AMENDMENT RELATING
TO DISCLOSURES REQUIRED,
PERIODIC
STATEMENTS, 
AND
ACCOUNT
RECORDS.—Section
43(b)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1831t(b)(1)) is amended by striking ‘‘or similar instrument
evidencing a deposit’’ and inserting ‘‘or share certificate.’’.
(c) AMENDMENTS RELATING TO DISCLOSURES REQUIRED, ADVER-
TISING, PREMISES.—Section 43(b)(2) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831t(b)(2)) is amended to read as follows:
‘‘(2) ADVERTISING; PREMISES.—
‘‘(A) IN GENERAL.—Include clearly and conspicuously
in all advertising, except as provided in subparagraph (B);
Regulations.
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PUBLIC LAW 109–351—OCT. 13, 2006
and at each station or window where deposits are normally
received, its principal place of business and all its branches
where it accepts deposits or opens accounts (excluding auto-
mated teller machines or point of sale terminals), and
on its main Internet page, a notice that the institution
is not federally insured.
‘‘(B) EXCEPTIONS.—The following need not include a
notice that the institution is not federally insured:
‘‘(i) Any sign, document, or other item that contains
the name of the depository institution, its logo, or
its contact information, but only if the sign, document,
or item does not include any information about the
institution’s products or services or information other-
wise promoting the institution.
‘‘(ii) Small utilitarian items that do not mention
deposit products or insurance if inclusion of the notice
would be impractical.’’.
(d) AMENDMENTS
RELATING
TO
ACKNOWLEDGMENT
OF
DISCLOSURE.—Section 43(b)(3) of the Federal Deposit Insurance
Act (12 U.S.C. 1831t(b)(3)) is amended to read as follows:
‘‘(3) ACKNOWLEDGMENT OF DISCLOSURE.—
‘‘(A) NEW DEPOSITORS OBTAINED OTHER THAN THROUGH
A CONVERSION OR MERGER.—With respect to any depositor
who was not a depositor at the depository institution before
the effective date of the Financial Services Regulatory
Relief Act of 2006, and who is not a depositor as described
in subparagraph (B), receive any deposit for the account
of such depositor only if the depositor has signed a written
acknowledgement that—
‘‘(i) the institution is not federally insured; and
‘‘(ii) if the institution fails, the Federal Government
does not guarantee that the depositor will get back
the depositor’s money.
‘‘(B) NEW DEPOSITORS OBTAINED THROUGH A CONVER-
SION OR MERGER.—With respect to a depositor at a federally
insured depository institution that converts to, or merges
into, a depository institution lacking federal insurance after
the effective date of the Financial Services Regulatory
Relief Act of 2006, receive any deposit for the account
of such depositor only if—
‘‘(i) the depositor has signed a written acknowl-
edgement described in subparagraph (A); or
‘‘(ii) the institution makes an attempt, as described
in subparagraph (D) and sent by mail no later than
45 days after the effective date of the conversion or
merger, to obtain the acknowledgment.
‘‘(C) CURRENT DEPOSITORS.—Receive any deposit after
the effective date of the Financial Services Regulatory
Relief Act of 2006 for the account of any depositor who
was a depositor on that date only if—
‘‘(i) the depositor has signed a written acknowl-
edgement described in subparagraph (A); or
‘‘(ii) the institution has complied with the provi-
sions of subparagraph (E) which are applicable as of
the date of the deposit.
Deadline.
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120 STAT. 1977
PUBLIC LAW 109–351—OCT. 13, 2006
‘‘(D) ALTERNATIVE
PROVISION
OF
NOTICE
TO
NEW
DEPOSITORS
OBTAINED
THROUGH
A
CONVERSION
OR
MERGER.—
‘‘(i) IN GENERAL.—Transmit to each depositor who
has not signed a written acknowledgement described
in subparagraph (A)—
‘‘(I) a conspicuous card containing the informa-
tion described in clauses (i) and (ii) of subpara-
graph (A), and a line for the signature of the
depositor; and
‘‘(II) accompanying materials requesting the
depositor to sign the card, and return the signed
card to the institution.
‘‘(E) ALTERNATIVE PROVISION OF NOTICE TO CURRENT
DEPOSITORS.—
‘‘(i) IN GENERAL.—Transmit to each depositor who
was a depositor before the effective date of the Finan-
cial Services Regulatory Relief Act of 2006, and has
not signed a written acknowledgement described in
subparagraph (A)—
‘‘(I) a conspicuous card containing the informa-
tion described in clauses (i) and (ii) of subpara-
graph (A), and a line for the signature of the
depositor; and
‘‘(II) accompanying materials requesting the
depositor to sign the card, and return the signed
card to the institution.
‘‘(ii) MANNER AND TIMING OF NOTICE.—
‘‘(I) FIRST
NOTICE.—Make the transmission
described in clause (i) via mail not later than three
months after the effective date of the Financial
Services Regulatory Relief Act of 2006.
‘‘(II) SECOND NOTICE.—Make a second trans-
mission described in clause (i) via mail not less
than 30 days and not more than three months
after a transmission to the depositor in accordance
with subclause (I), if the institution has not, by
the date of such mailing, received from the
depositor a card referred to in clause (i) which
has been signed by the depositor.’’.
(e) AMENDMENTS RELATING
TO MANNER
AND CONTENT
OF
DISCLOSURE.—Section 43(c) of the Federal Deposit Insurance Act
(12 U.S.C. 1831t(c)) is amended to read as follows:
‘‘(c) MANNER AND CONTENT OF DISCLOSURE.—To ensure that
current and prospective customers understand the risks involved
in foregoing Federal deposit insurance, the Federal Trade Commis-
sion, by regulation or order, shall prescribe the manner and content
of disclosure required under this section, which shall be presented
in such format and in such type size and manner as to be simple
and easy to understand.’’.
(f) REPEAL OF PROVISION PROHIBITING NONDEPOSITORY INSTITU-
TIONS FROM ACCEPTING DEPOSITS.—Section 43 of the Federal
Deposit Insurance Act (12 U.S.C. 1831t) is amended—
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
Regulations.
Deadlines.
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120 STAT. 1978
PUBLIC LAW 109–351—OCT. 13, 2006
(g) REPEAL
OF FTC AUTHORITY TO ENFORCE INDEPENDENT
AUDIT REQUIREMENT; CONCURRENT STATE ENFORCEMENT.—Sub-
section (f) (as so redesignated by subsection (e) of this section)
of section 43 of the Federal Deposit Insurance Act (12 U.S.C.
1831t) is amended to read as follows:
‘‘(f) ENFORCEMENT.—
‘‘(1) LIMITED FTC ENFORCEMENT AUTHORITY.—Compliance
with the requirements of subsections (b), (c) and (e), and any
regulation prescribed or order issued under any such sub-
section, shall be enforced under the Federal Trade Commission
Act by the Federal Trade Commission.
‘‘(2) BROAD STATE ENFORCEMENT AUTHORITY.—
‘‘(A) IN
GENERAL.—Subject to subparagraph (C), an
appropriate State supervisor of a depository institution
lacking Federal deposit insurance may examine and enforce
compliance with the requirements of this section, and any
regulation prescribed under this section.
‘‘(B) STATE
POWERS.—For purposes of bringing any
action to enforce compliance with this section, no provision
of this section shall be construed as preventing an appro-
priate State supervisor of a depository institution lacking
Federal deposit insurance from exercising any powers con-
ferred on such official by the laws of such State.
‘‘(C) LIMITATION
ON
STATE
ACTION
WHILE
FEDERAL
ACTION PENDING.—If the Federal Trade Commission has
instituted an enforcement action for a violation of this
section, no appropriate State supervisor may, during the
pendency of such action, bring an action under this section
against any defendant named in the complaint of the
Commission for any violation of this section that is alleged
in that complaint.’’.
TITLE VI—DEPOSITORY INSTITUTION
PROVISIONS
SEC. 
601. 
REPORTING 
REQUIREMENTS 
RELATING 
TO 
INSIDER
LENDING.
(a) REPORTING REQUIREMENTS REGARDING LOANS TO EXECUTIVE
OFFICERS OF MEMBER BANKS.—Section 22(g) of the Federal Reserve
Act (12 U.S.C. 375a) is amended—
(1) by striking paragraphs (6) and (9); and
(2) by redesignating paragraphs (7), (8), and (10) as para-
graphs (6), (7), and (8), respectively.
(b) REPORTING REQUIREMENTS REGARDING LOANS FROM COR-
RESPONDENT BANKS TO EXECUTIVE OFFICERS AND SHAREHOLDERS
OF INSURED BANKS.—Section 106(b)(2) of the Bank Holding Com-
pany Act Amendments of 1970 (12 U.S.C. 1972(2)) is amended—
(1) by striking subparagraph (G); and
(2) by redesignating subparagraphs (H) and (I) as subpara-
graphs (G) and (H), respectively.
SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK
SERVICE COMPANIES AUTHORIZED.
(a) IN GENERAL.—Sections 2 and 3 of the Bank Service Com-
pany Act (12 U.S.C. 1862, 1863) are each amended by striking
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PUBLIC LAW 109–351—OCT. 13, 2006
‘‘insured bank’’ each place that term appears and inserting ‘‘insured
depository institution’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) BANK SERVICE COMPANY ACT DEFINITIONS.—Section 1(b)
of the Bank Service Company Act (12 U.S.C. 1861(b)) is
amended—
(A) in paragraph (4)—
(i) by inserting ‘‘, except when such term appears
in connection with the term ‘insured depository institu-
tion’,’’ after ‘‘means’’; and
(ii) by striking ‘‘Federal Home Loan Bank Board’’
and inserting ‘‘Director of the Office of Thrift Super-
vision’’;
(B) by striking paragraph (5) and inserting the fol-
lowing:
‘‘(5) INSURED DEPOSITORY INSTITUTION.—The term ‘insured
depository institution’ has the same meaning as in section
3(c) of the Federal Deposit Insurance Act;’’;
(C) by striking ‘‘and’’ at the end of paragraph (7);
(D) by striking the period at the end of paragraph
(8) and inserting ‘‘; and’’;
(E) by adding at the end the following:
‘‘(9) the terms ‘State depository institution’, ‘Federal deposi-
tory institution’, ‘State savings association’ and ‘Federal savings
association’ have the same meanings as in section 3 of the
Federal Deposit Insurance Act.’’;
(F) in paragraph (2), in subparagraphs (A)(ii) and
(B)(ii), by striking ‘‘insured banks’’ each place that term
appears and inserting ‘‘insured depository institutions’’; and
(G) in paragraph (8)—
(i) by striking ‘‘insured bank’’ and inserting
‘‘insured depository institution’’;
(ii) by striking ‘‘insured banks’’ each place that
term appears and inserting ‘‘insured depository institu-
tions’’; and
(iii) by striking ‘‘the bank’s’’ and inserting ‘‘the
depository institution’s’’.
(2) AMOUNT OF INVESTMENT.—Section 2 of the Bank Service
Company Act (12 U.S.C. 1862) is amended by inserting ‘‘or
savings associations, other than the limitation on the amount
of investment by a Federal savings association contained in
section 5(c)(4)(B) of the Home Owners’ Loan Act’’ after ‘‘relating
to banks’’.
(3) LOCATION OF SERVICES.—Section 4 of the Bank Service
Company Act (12 U.S.C. 1864) is amended—
(A) in subsection (b), by inserting ‘‘as permissible under
subsection (c), (d), or (e) or’’ after ‘‘Except’’;
(B) in subsection (c), by inserting ‘‘or State savings
association’’ after ‘‘State bank’’ each place that term
appears;
(C) in subsection (d), by inserting ‘‘or Federal savings
association’’ after ‘‘national bank’’ each place that term
appears;
(D) by striking subsection (e) and inserting the fol-
lowing:
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PUBLIC LAW 109–351—OCT. 13, 2006
‘‘(e) PERFORMANCE WHERE STATE BANK AND NATIONAL BANK
ARE SHAREHOLDERS OR MEMBERS.—A bank service company may
perform—
‘‘(1) only those services that each depository institution
shareholder or member is otherwise authorized to perform
under any applicable Federal or State law; and
‘‘(2) such services only at locations in a State in which
each such shareholder or member is authorized to perform
such services.’’; and
(E) in subsection (f), by inserting ‘‘or savings associa-
tions’’ after ‘‘location of banks’’.
(4) PRIOR APPROVAL OF INVESTMENTS.—Section 5 of the
Bank Service Company Act (12 U.S.C. 1865) is amended—
(A) in subsection (a)—
(i) by striking ‘‘insured bank’’ and inserting
‘‘insured depository institution’’; and
(ii) by striking ‘‘bank’s’’; and
(iii) by inserting before the period ‘‘for the insured
depository institution’’;
(B) in subsection (b)—
(i) by striking ‘‘insured bank’’ and inserting
‘‘insured depository institution’’;
(ii) by inserting ‘‘authorized only’’ after ‘‘performs
any service’’; and
(iii) by inserting ‘‘authorized only’’ after ‘‘perform
any activity’’; and
(C) in subsection (c)—
(i) by striking ‘‘the bank or banks’’ and inserting
‘‘any insured depository institution’’; and
(ii) by striking ‘‘capability of the bank’’ and
inserting ‘‘capability of the insured depository institu-
tion’’.
(5) REGULATION AND EXAMINATION.—Section 7 of the Bank
Service Company Act (12 U.S.C. 1867) is amended—
(A) in subsection (b), by striking ‘‘insured bank’’ and
inserting ‘‘insured depository institution’’; and
(B) in subsection (c)—
(i) by striking ‘‘a bank’’ each place that term
appears and inserting ‘‘a depository institution’’; and
(ii) by striking ‘‘the bank’’ each place that term
appears and inserting ‘‘the depository institution’’.
SEC. 603. AUTHORIZATION FOR MEMBER BANK TO USE PASS-THROUGH
RESERVE ACCOUNTS.
Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C.
461(c)(1)(B)) is amended by striking ‘‘which is not a member bank’’.
SEC. 604. STREAMLINING REPORTS OF CONDITION.
Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C.
1817(a)) is amended by adding at the end the following:
‘‘(11) STREAMLINING REPORTS OF CONDITION.—
‘‘(A) REVIEW OF INFORMATION AND SCHEDULES.—Before
the end of the 1-year period beginning on the date of
enactment of the Financial Services Regulatory Relief Act
of 2006 and before the end of each 5-year period thereafter,
each Federal banking agency shall, in conjunction with
the other relevant Federal banking agencies, review the
information and schedules that are required to be filed
Deadlines.
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PUBLIC LAW 109–351—OCT. 13, 2006
by an insured depository institution in a report of condition
required under paragraph (3).
‘‘(B) REDUCTION
OR
ELIMINATION
OF
INFORMATION
FOUND TO BE UNNECESSARY.—After completing the review
required by subparagraph (A), a Federal banking agency,
in conjunction with the other relevant Federal banking
agencies, shall reduce or eliminate any requirement to
file information or schedules under paragraph (3) (other
than information or schedules that are otherwise required
by law) if the agency determines that the continued collec-
tion of such information or schedules is no longer necessary
or appropriate.’’.
SEC. 605. EXPANSION OF ELIGIBILITY FOR 18-MONTH EXAMINATION
SCHEDULE FOR COMMUNITY BANKS.
Section 10(d)(4)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1820(d)(4)(A)) is amended by striking ‘‘$250,000,000’’ and
inserting ‘‘$500,000,000’’.
SEC. 
606. 
STREAMLINING 
DEPOSITORY 
INSTITUTION 
MERGER
APPLICATION REQUIREMENTS.
(a) IN GENERAL.—Section 18(c)(4) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1828(c)(4)) is amended to read as follows:
‘‘(4) REPORTS ON COMPETITIVE FACTORS.—
‘‘(A) REQUEST FOR REPORT.—In the interests of uniform
standards and subject to subparagraph (B), before acting
on any application for approval of a merger transaction,
the responsible agency shall—
‘‘(i) request a report on the competitive factors
involved from the Attorney General of the United
States; and
‘‘(ii) provide a copy of the request to the Corpora-
tion (when the Corporation is not the responsible
agency).
‘‘(B) FURNISHING
OF
REPORT.—The report requested
under subparagraph (A) shall be furnished by the Attorney
General to the responsible agency—
‘‘(i) not later than 30 calendar days after the date
on which the Attorney General received the request;
or
‘‘(ii) not later than 10 calendar days after such
date, if the requesting agency advises the Attorney
General that an emergency exists requiring expeditious
action.
‘‘(C) EXCEPTIONS.—A responsible agency may not be
required to request a report under subparagraph (A) if—
‘‘(i) the responsible agency finds that it must act
immediately in order to prevent the probable failure
of 1 of the insured depository institutions involved
in the merger transaction; or
‘‘(ii) the merger transaction involves solely an
insured depository institution and 1 or more of the
affiliates of such depository institution.’’.
(b) 
TECHNICAL
AND
CONFORMING
AMENDMENTS.—Section
18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6))
is amended—
(1) in the second sentence, by striking ‘‘banks or savings
associations involved and reports on the competitive factors
Deadlines.
Records.
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PUBLIC LAW 109–351—OCT. 13, 2006
have’’ and inserting ‘‘insured depository institutions involved,
or if the proposed merger transaction is solely between an
insured depository institution and 1 or more of its affiliates,
and the report on the competitive factors has’’; and
(2) by striking the penultimate sentence and inserting the
following: ‘‘If the agency has advised the Attorney General
under paragraph (4)(B)(ii) of the existence of an emergency
requiring expeditious action and has requested a report on
the competitive factors within 10 days, the transaction may
not be consummated before the fifth calendar day after the
date of approval by the agency.’’.
SEC. 607. NONWAIVER OF PRIVILEGES.
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 18 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1828) is amended by adding
at the end the following:
‘‘(x) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO BANKING
AGENCY OR SUPERVISOR.—
‘‘(1) IN GENERAL.—The submission by any person of any
information to any Federal banking agency, State bank super-
visor, or foreign banking authority for any purpose in the
course of any supervisory or regulatory process of such agency,
supervisor, or authority shall not be construed as waiving,
destroying, or otherwise affecting any privilege such person
may claim with respect to such information under Federal
or State law as to any person or entity other than such agency,
supervisor, or authority.
‘‘(2) RULE OF CONSTRUCTION.—No provision of paragraph
(1) may be construed as implying or establishing that—
‘‘(A) any person waives any privilege applicable to
information that is submitted or transferred under any
circumstance to which paragraph (1) does not apply; or
‘‘(B) any person would waive any privilege applicable
to any information by submitting the information to any
Federal banking agency, State bank supervisor, or foreign
banking authority, but for this subsection.’’
(b) INSURED CREDIT UNIONS.—Section 205 of the Federal Credit
Union Act (12 U.S.C. 1785) is amended by adding at the end
the following:
‘‘(j) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO BANKING
AGENCY OR SUPERVISOR.—
‘‘(1) IN GENERAL.—The submission by any person of any
information to the Administration, any State credit union
supervisor, or foreign banking authority for any purpose in
the course of any supervisory or regulatory process of such
Board, supervisor, or authority shall not be construed as
waiving, destroying, or otherwise affecting any privilege such
person may claim with respect to such information under Fed-
eral or State law as to any person or entity other than such
Board, supervisor, or authority.
‘‘(2) RULE OF CONSTRUCTION.—No provision of paragraph
(1) may be construed as implying or establishing that—
‘‘(A) any person waives any privilege applicable to
information that is submitted or transferred under any
circumstance to which paragraph (1) does not apply; or
‘‘(B) any person would waive any privilege applicable
to any information by submitting the information to the
Deadline.
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PUBLIC LAW 109–351—OCT. 13, 2006
Administration, any State credit union supervisor, or for-
eign banking authority, but for this subsection.’’.
SEC. 608. CLARIFICATION OF APPLICATION REQUIREMENTS FOR
OPTIONAL 
CONVERSION 
FOR 
FEDERAL 
SAVINGS
ASSOCIATIONS.
(a) HOME OWNERS’ LOAN ACT.—Section 5(i)(5) of the Home
Owners’ Loan Act (12 U.S.C. 1464(i)(5)) is amended to read as
follows:
‘‘(5) CONVERSION TO NATIONAL OR STATE BANK.—
‘‘(A) IN
GENERAL.—Any Federal savings association
chartered and in operation before the date of enactment
of the Gramm-Leach-Bliley Act, with branches in operation
before such date of enactment in 1 or more States, may
convert, at its option, with the approval of the Comptroller
of the Currency for each national bank, and with the
approval of the appropriate State bank supervisor and
the appropriate Federal banking agency for each State
bank, into 1 or more national or State banks, each of
which may encompass 1 or more of the branches of the
Federal savings association in operation before such date
of enactment in 1 or more States subject to subparagraph
(B).
‘‘(B) CONDITIONS
OF
CONVERSION.—The authority in
subparagraph (A) shall apply only if each resulting national
or State bank—
‘‘(i) will meet all financial, management, and cap-
ital requirements applicable to the resulting national
or State bank; and
‘‘(ii) if more than 1 national or State bank results
from a conversion under this subparagraph, has
received approval from the Federal Deposit Insurance
Corporation under section 5(a) of the Federal Deposit
Insurance Act.
‘‘(C) NO MERGER APPLICATION UNDER FDIA REQUIRED.—
No application under section 18(c) of the Federal Deposit
Insurance Act shall be required for a conversion under
this paragraph.
‘‘(D) DEFINITIONS.—For purposes of this paragraph, the
terms ‘State bank’ and ‘State bank supervisor’ have the
same meanings as in section 3 of the Federal Deposit
Insurance Act.’’.
(b) FEDERAL DEPOSIT INSURANCE ACT.—Section 4(c) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1814(c)) is amended—
(1) by inserting ‘‘of this Act and section 5(i)(5) of the Home
Owners’ Loan Act’’ after ‘‘Subject to section 5(d)’’; and
(2) in paragraph (2), after ‘‘insured State,’’ by inserting
‘‘or Federal’’.
SEC. 609. EXEMPTION FROM DISCLOSURE OF PRIVACY POLICY FOR
ACCOUNTANTS.
(a) IN GENERAL.—Section 503 of the Gramm-Leach-Bliley Act
(15 U.S.C. 6803) is amended by adding at the end the following:
‘‘(d) EXEMPTION FOR CERTIFIED PUBLIC ACCOUNTANTS.—
‘‘(1) IN
GENERAL.—The disclosure requirements of sub-
section (a) do not apply to any person, to the extent that
the person is—
‘‘(A) a certified public accountant;
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‘‘(B) certified or licensed for such purpose by a State;
and
‘‘(C) subject to any provision of law, rule, or regulation
issued by a legislative or regulatory body of the State,
including rules of professional conduct or ethics, that pro-
hibits disclosure of nonpublic personal information without
the knowing and expressed consent of the consumer.
‘‘(2) LIMITATION.—Nothing in this subsection shall be con-
strued to exempt or otherwise exclude any financial institution
that is affiliated or becomes affiliated with a certified public
accountant described in paragraph (1) from any provision of
this section.
‘‘(3) DEFINITIONS.—For purposes of this subsection, the
term ‘State’ means any State or territory of the United States,
the District of Columbia, Puerto Rico, Guam, American Samoa,
the Trust Territory of the Pacific Islands, the Virgin Islands,
or the Northern Mariana Islands.’’.
(b) CLERICAL AMENDMENTS.—Section 503 of the Gramm-Leach-
Bliley Act (15 U.S.C. 6803) is amended—
(1) by redesignating subsection (b) as subsection (c); and
(2) in subsection (a), by striking ‘‘Such disclosures’’ and
inserting the following:
‘‘(b) REGULATIONS.—Disclosures required by subsection (a)’’.
SEC. 610. INFLATION ADJUSTMENT FOR THE SMALL DEPOSITORY
INSTITUTION 
EXCEPTION 
UNDER 
THE 
DEPOSITORY
INSTITUTION MANAGEMENT INTERLOCKS ACT.
Section 203(1) of the Depository Institution Management Inter-
locks Act (12 U.S.C. 3202(1)) is amended by striking ‘‘$20,000,000’’
and inserting ‘‘$50,000,000’’.
SEC. 611. MODIFICATION TO CROSS MARKETING RESTRICTIONS.
Section 4(n)(5)(B) of the Bank Holding Company Act of 1956
(12 U.S.C. 1843(n)(5)(B)) is amended by striking ‘‘subsection
(k)(4)(I)’’ and inserting ‘‘subparagraph (H) or (I) of subsection (k)(4)’’.
TITLE VII—BANKING AGENCY
PROVISIONS
SEC. 701. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW OF
APPOINTMENT 
OF 
A 
RECEIVER 
FOR 
DEPOSITORY
INSTITUTIONS.
(a) NATIONAL BANKS.—Section 2 of the National Bank Receiver-
ship Act (12 U.S.C. 191) is amended—
(1) by amending the section heading to read as follows:
‘‘SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL BANK.
‘‘(a) IN GENERAL.—The Comptroller of the Currency’’; and
(2) by adding at the end the following:
‘‘(b) JUDICIAL REVIEW.—If the Comptroller of the Currency
appoints a receiver under subsection (a), the national bank may,
within 30 days thereafter, bring an action in the United States
district court for the judicial district in which the home office
of such bank is located, or in the United States District Court
for the District of Columbia, for an order requiring the Comptroller
of the Currency to remove the receiver, and the court shall, upon
Deadline.
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PUBLIC LAW 109–351—OCT. 13, 2006
the merits, dismiss such action or direct the Comptroller of the
Currency to remove the receiver.’’.
(b) INSURED DEPOSITORY INSTITUTIONS.—Section 11(c)(7) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(c)(7)) is amended
to read as follows:
‘‘(7) JUDICIAL
REVIEW.—If the Corporation is appointed
(including the appointment of the Corporation as receiver by
the Board of Directors) as conservator or receiver of a depository
institution under paragraph (4), (9), or (10), the depository
institution may, not later than 30 days thereafter, bring an
action in the United States district court for the judicial district
in which the home office of such depository institution is
located, or in the United States District Court for the District
of Columbia, for an order requiring the Corporation to be
removed as the conservator or receiver (regardless of how such
appointment was made), and the court shall, upon the merits,
dismiss such action or direct the Corporation to be removed
as the conservator or receiver.’’.
(c) EFFECTIVE DATE.—The amendments made by subsections
(a) and (b) shall apply with respect to conservators or receivers
appointed on or after the date of enactment of this Act.
SEC. 702. ENHANCING THE SAFETY AND SOUNDNESS OF INSURED
DEPOSITORY INSTITUTIONS.
(a) CLARIFICATION RELATING TO THE ENFORCEABILITY OF AGREE-
MENTS AND CONDITIONS.—The Federal Deposit Insurance Act (12
U.S.C. 1811 et seq.) is amended by adding at the end the following:
‘‘SEC. 50. ENFORCEMENT OF AGREEMENTS.
‘‘(a) IN GENERAL.—Notwithstanding clause (i) or (ii) of section
8(b)(6)(A) or section 38(e)(2)(E)(i), the appropriate Federal banking
agency for a depository institution may enforce, under section 8,
the terms of—
‘‘(1) any condition imposed in writing by the agency on
the depository institution or an institution-affiliated party in
connection with any action on any application, notice, or other
request concerning the depository institution; or
‘‘(2) any written agreement entered into between the agency
and the depository institution or an institution-affiliated party.
‘‘(b) 
RECEIVERSHIPS
AND
CONSERVATORSHIPS.—After 
the
appointment of the Corporation as the receiver or conservator for
a depository institution, the Corporation may enforce any condition
or agreement described in paragraph (1) or (2) of subsection (a)
imposed on or entered into with such institution or institution-
affiliated party through an action brought in an appropriate United
States district court.’’.
(b) PROTECTION OF CAPITAL OF INSURED DEPOSITORY INSTITU-
TIONS.—Section 18(u)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1828(u)(1)) is amended—
(1) by striking subparagraph (B);
(2) by redesignating subparagraph (C) as subparagraph
(B); and
(3) in subparagraph (A), by adding ‘‘and’’ at the end.
(c) CONFORMING AMENDMENTS.—Section 8(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1818(b)) is amended—
(1) in paragraph (3), by striking ‘‘This subsection and sub-
sections (c) through (s) and subsection (u) of this section’’ and
12 USC 1831aa.
12 USC 191 note.
Deadline.
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PUBLIC LAW 109–351—OCT. 13, 2006
inserting ‘‘This subsection, subsections (c) through (s) and sub-
section (u) of this section, and section 50 of this Act’’; and
(2) in paragraph (4), by striking ‘‘This subsection and sub-
sections (c) through (s) and subsection (u) of this section’’ and
inserting ‘‘This subsection, subsections (c) through (s) and sub-
section (u) of this section, and section 50 of this Act’’.
SEC. 703. CROSS GUARANTEE AUTHORITY.
Section 5(e)(9)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1815(e)(9)(A)) is amended to read as follows:
‘‘(A) such institutions are controlled by the same com-
pany; or’’.
SEC. 704. GOLDEN PARACHUTE AUTHORITY AND NONBANK HOLDING
COMPANIES.
Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C.
1828(k)) is amended—
(1) in paragraph (2)(A), by striking ‘‘or depository institu-
tion holding company’’ and inserting ‘‘or covered company’’;
(2) in paragraph (2), by striking subparagraph (B), and
inserting the following:
‘‘(B) Whether there is a reasonable basis to believe
that the institution-affiliated party is substantially respon-
sible for—
‘‘(i) the insolvency of the depository institution or
covered company;
‘‘(ii) the appointment of a conservator or receiver
for the depository institution; or
‘‘(iii) the troubled condition of the depository
institution (as defined in the regulations prescribed
pursuant to section 32(f)).’’;
(3) in paragraph (2)(F), by striking ‘‘depository institution
holding company’’ and inserting ‘‘covered company,’’;
(4) in paragraph (3) in the matter preceding subparagraph
(A), by striking ‘‘depository institution holding company’’ and
inserting ‘‘covered company’’;
(5) in paragraph (3)(A), by striking ‘‘holding company’’ and
inserting ‘‘covered company’’;
(6) in paragraph (4)(A)—
(A) by striking ‘‘depository institution holding com-
pany’’ each place that term appears and inserting ‘‘covered
company’’; and
(B) by striking ‘‘holding company’’ each place that term
appears (other than in connection with the term referred
to in subparagraph (A)) and inserting ‘‘covered company’’;
(7) in paragraph (5)(A), by striking ‘‘depository institution
holding company’’ and inserting ‘‘covered company’’;
(8) in paragraph (5), by adding at the end the following:
‘‘(D) COVERED COMPANY.—The term ‘covered company’
means 
any 
depository 
institution 
holding 
company
(including any company required to file a report under
section 4(f)(6) of the Bank Holding Company Act of 1956),
or any other company that controls an insured depository
institution.’’; and
(9) in paragraph (6)—
(A) by striking ‘‘depository institution holding com-
pany’’ and inserting ‘‘covered company,’’; and
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PUBLIC LAW 109–351—OCT. 13, 2006
(B) by striking ‘‘or holding company’’ and inserting
‘‘or covered company’’.
SEC. 705. AMENDMENTS RELATING TO CHANGE IN BANK CONTROL.
Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C.
1817(j)) is amended—
(1) in paragraph (1)(D)—
(A) by striking ‘‘is needed to investigate’’ and inserting
‘‘is needed—
‘‘(i) to investigate’’;
(B) by striking ‘‘United States Code.’’ and inserting
‘‘United States Code; or’’; and
(C) by adding at the end the following:
‘‘(ii) to analyze the safety and soundness of any
plans or proposals described in paragraph (6)(E) or
the future prospects of the institution.’’; and
(2) in paragraph (7)(C), by striking ‘‘the financial condition
of any acquiring person’’ and inserting ‘‘either the financial
condition of any acquiring person or the future prospects of
the institution’’.
SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD
WITH DISCRETION CONCERNING THE IMPUTATION OF
CONTROL OF SHARES OF A COMPANY BY TRUSTEES.
Section 2(g)(2) of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(g)(2)) is amended by inserting before the period
at the end ‘‘, unless the Board determines that such treatment
is not appropriate in light of the facts and circumstances of the
case and the purposes of this Act’’.
SEC. 707. INTERAGENCY DATA SHARING.
(a) FEDERAL BANKING AGENCIES.—Section 7(a)(2) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(a)(2)) is amended by adding
at the end the following:
‘‘(C) DATA SHARING WITH OTHER AGENCIES AND PER-
SONS.—In addition to reports of examination, reports of
condition, and other reports required to be regularly pro-
vided to the Corporation (with respect to all insured deposi-
tory institutions, including a depository institution for
which the Corporation has been appointed conservator or
receiver) or an appropriate State bank supervisor (with
respect to a State depository institution) under subpara-
graph (A) or (B), a Federal banking agency may, in the
discretion of the agency, furnish any report of examination
or other confidential supervisory information concerning
any depository institution or other entity examined by such
agency under authority of any Federal law, to—
‘‘(i) any other Federal or State agency or authority
with supervisory or regulatory authority over the
depository institution or other entity;
‘‘(ii) any officer, director, or receiver of such deposi-
tory institution or entity; and
‘‘(iii) any other person that the Federal banking
agency determines to be appropriate.’’.
(b) NATIONAL CREDIT UNION ADMINISTRATION.—Section 202(a)
of the Federal Credit Union Act (12 U.S.C. 1782(a)) is amended
by adding at the end the following:
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PUBLIC LAW 109–351—OCT. 13, 2006
‘‘(8) DATA SHARING WITH OTHER AGENCIES AND PERSONS.—
In addition to reports of examination, reports of condition,
and other reports required to be regularly provided to the
Board (with respect to all insured credit unions, including a
credit union for which the Corporation has been appointed
conservator or liquidating agent) or an appropriate State
commission, board, or authority having supervision of a State-
chartered credit union, the Board may, in the discretion of
the Board, furnish any report of examination or other confiden-
tial supervisory information concerning any credit union or
other entity examined by the Board under authority of any
Federal law, to—
‘‘(A) any other Federal or State agency or authority
with supervisory or regulatory authority over the credit
union or other entity;
‘‘(B) any officer, director, or receiver of such credit
union or entity; and
‘‘(C) any other person that the Board determines to
be appropriate.’’.
SEC. 708. CLARIFICATION OF EXTENT OF SUSPENSION, REMOVAL, AND
PROHIBITION AUTHORITY OF FEDERAL BANKING AGEN-
CIES IN CASES OF CERTAIN CRIMES BY INSTITUTION-
AFFILIATED PARTIES.
(a) INSURED DEPOSITORY INSTITUTIONS.—
(1) IN GENERAL.—Section 8(g)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1818(g)(1)) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘is charged in any information,
indictment, or complaint, with the commission of or
participation in’’ and inserting ‘‘is the subject of any
information, indictment, or complaint, involving the
commission of or participation in’’;
(ii) by striking ‘‘may pose a threat to the interests
of the depository institution’s depositors or may
threaten to impair public confidence in the depository
institution,’’ and insert ‘‘posed, poses, or may pose a
threat to the interests of the depositors of, or threat-
ened, threatens, or may threaten to impair public con-
fidence in, any relevant depository institution (as
defined in subparagraph (E)),’’; and
(iii) by striking ‘‘affairs of the depository institu-
tion’’ and inserting ‘‘affairs of any depository institu-
tion’’;
(B) in subparagraph (B)(i), by striking ‘‘the depository
institution’’ and inserting ‘‘any depository institution that
the subject of the notice is affiliated with at the time
the notice is issued’’;
(C) in subparagraph (C)(i)—
(i) by striking ‘‘may pose a threat to the interests
of the depository institution’s depositors or may
threaten to impair public confidence in the depository
institution,’’ and insert ‘‘posed, poses, or may pose a
threat to the interests of the depositors of, or threat-
ened, threatens, or may threaten to impair public con-
fidence in, any relevant depository institution (as
defined in subparagraph (E)),’’; and
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PUBLIC LAW 109–351—OCT. 13, 2006
(ii) by striking ‘‘affairs of the depository institu-
tion’’ and inserting ‘‘affairs of any depository institu-
tion’’;
(D) in subparagraph (C)(ii), by striking ‘‘affairs of the
depository institution’’ and inserting ‘‘affairs of any deposi-
tory institution’’;
(E) in subparagraph (D)(i), by striking ‘‘the depository
institution’’ and inserting ‘‘any depository institution that
the subject of the order is affiliated with at the time the
order is issued’’; and
(F) by adding at the end the following:
‘‘(E) RELEVANT
DEPOSITORY
INSTITUTION.—For pur-
poses of this subsection, the term ‘relevant depository
institution’ means any depository institution of which the
party is or was an institution-affiliated party at the time
at which—
‘‘(i) the information, indictment, or complaint
described in subparagraph (A) was issued; or
‘‘(ii) the notice is issued under subparagraph (A)
or the order is issued under subparagraph (C)(i).’’.
(2) CLERICAL AMENDMENT.—The subsection heading for sec-
tion 8(g) of the Federal Deposit Insurance Act (12 U.S.C.
1818(g)) is amended to read as follows:
‘‘(g) SUSPENSION, REMOVAL, AND PROHIBITION FROM PARTICIPA-
TION ORDERS IN THE CASE OF CERTAIN CRIMINAL OFFENSES.—’’.
(b) INSURED CREDIT UNIONS.—
(1) IN GENERAL.—Section 206(i)(1) of the Federal Credit
Union Act (12 U.S.C. 1786(i)(1)) is amended—
(A) in subparagraph (A), by striking ‘‘the credit union’’
each place that term appears and inserting ‘‘any credit
union’’;
(B) in subparagraph (B)(i), by inserting ‘‘of which the
subject of the order is, or most recently was, an institution-
affiliated party’’ before the period at the end;
(C) in subparagraph (C)—
(i) by striking ‘‘the credit union’’ each place such
term appears and inserting ‘‘any credit union’’; and
(ii) by striking ‘‘the credit union’s’’ and inserting
‘‘any credit union’s’’;
(D) in subparagraph (D)(i), by striking ‘‘upon such
credit union’’ and inserting ‘‘upon the credit union of which
the subject of the order is, or most recently was, an institu-
tion-affiliated party’’; and
(E) by adding at the end the following:
‘‘(E) CONTINUATION OF AUTHORITY.—The Board may
issue an order under this paragraph with respect to an
individual who is an institution-affiliated party at a credit
union at the time of an offense described in subparagraph
(A) without regard to—
‘‘(i) whether such individual is an institution-affili-
ated party at any credit union at the time the order
is considered or issued by the Board; or
‘‘(ii) whether the credit union at which the indi-
vidual was an institution-affiliated party at the time
of the offense remains in existence at the time the
order is considered or issued by the Board.’’.
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(2) CLERICAL AMENDMENT.—Section 206(i) of the Federal
Credit Union Act (12 U.S.C. 1786(i)) is amended by striking
‘‘(i)’’ at the beginning and inserting the following:
‘‘(i) SUSPENSION, REMOVAL, AND PROHIBITION FROM PARTICIPA-
TION ORDERS IN THE CASE OF CERTAIN CRIMINAL OFFENSES.—’’.
SEC. 709. PROTECTION OF CONFIDENTIAL INFORMATION RECEIVED
BY FEDERAL BANKING REGULATORS FROM FOREIGN
BANKING SUPERVISORS.
Section 15 of the International Banking Act of 1978 (12 U.S.C.
3109) is amended by adding at the end the following:
‘‘(c) CONFIDENTIAL
INFORMATION
RECEIVED
FROM
FOREIGN
SUPERVISORS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (3),
a Federal banking agency may not be compelled to disclose
information received from a foreign regulatory or supervisory
authority if—
‘‘(A) the Federal banking agency determines that the
foreign regulatory or supervisory authority has, in good
faith, determined and represented in writing to such Fed-
eral banking agency that public disclosure of the informa-
tion would violate the laws applicable to that foreign regu-
latory or supervisory authority; and
‘‘(B) the relevant Federal banking agency obtained such
information pursuant to—
‘‘(i) such procedures as the Federal banking agency
may establish for use in connection with the adminis-
tration and enforcement of Federal banking laws; or
‘‘(ii) a memorandum of understanding or other
similar arrangement between the Federal banking
agency and the foreign regulatory or supervisory
authority.
‘‘(2) TREATMENT UNDER TITLE 5, UNITED STATES CODE.—
For purposes of section 552 of title 5, United States Code,
this subsection shall be treated as a statute described in sub-
section (b)(3)(B) of such section.
‘‘(3) SAVINGS PROVISION.—No provision of this section shall
be construed as—
‘‘(A) authorizing any Federal banking agency to with-
hold any information from any duly authorized committee
of the House of Representatives or the Senate; or
‘‘(B) preventing any Federal banking agency from com-
plying with an order of a court of the United States in
an action commenced by the United States or such agency.
‘‘(4) FEDERAL BANKING AGENCY DEFINED.—For purposes of
this subsection, the term ‘Federal banking agency’ means the
Board, the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, and the Director of the Office of Thrift
Supervision.’’.
SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED INDIVID-
UALS.
(a) EXTENSION OF AUTOMATIC PROHIBITION.—Section 19 of the
Federal Deposit Insurance Act (12 U.S.C. 1829) is amended by
adding at the end the following new subsections:
‘‘(d) BANK HOLDING COMPANIES.—
‘‘(1) IN GENERAL.—Subsections (a) and (b) shall apply to
any company (other than a foreign bank) that is a bank holding
Applicability.
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PUBLIC LAW 109–351—OCT. 13, 2006
company and any organization organized and operated under
section 25A of the Federal Reserve Act or operating under
section 25 of the Federal Reserve Act, as if such bank holding
company or organization were an insured depository institution,
except that such subsections shall be applied for purposes of
this subsection by substituting ‘Board of Governors of the Fed-
eral Reserve System’ for ‘Corporation’ each place that term
appears in such subsections.
‘‘(2) AUTHORITY
OF
BOARD.—The Board of Governors of
the Federal Reserve System may provide exemptions, by regula-
tion or order, from the application of paragraph (1) if the
exemption is consistent with the purposes of this subsection.
‘‘(e) SAVINGS AND LOAN HOLDING COMPANIES.—
‘‘(1) IN GENERAL.—Subsections (a) and (b) shall apply to
any savings and loan holding company as if such savings and
loan holding company were an insured depository institution,
except that such subsections shall be applied for purposes of
this subsection by substituting ‘Director of the Office of Thrift
Supervision’ for ‘Corporation’ each place that term appears
in such subsections.
‘‘(2) AUTHORITY OF DIRECTOR.—The Director of the Office
of Thrift Supervision may provide exemptions, by regulation
or order, from the application of paragraph (1) if the exemption
is consistent with the purposes of this subsection.’’.
(b) ENHANCED DISCRETION TO REMOVE CONVICTED INDIVID-
UALS.—Section 8(e)(2)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1818(e)(2)(A)) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii);
(2) by striking the comma at the end of clause (iii) and
inserting ‘‘; or’’; and
‘‘(3) by adding at the end the following new clause:
‘‘(iv) an institution-affiliated party of a subsidiary
(other than a bank) of a bank holding company or
of a subsidiary (other than a savings association) of
a savings and loan holding company has been convicted
of any criminal offense involving dishonesty or a breach
of trust or a criminal offense under section 1956, 1957,
or 1960 of title 18, United States Code, or has agreed
to enter into a pretrial diversion or similar program
in connection with a prosecution for such an offense,’’.
SEC. 711. COORDINATION OF STATE EXAMINATION AUTHORITY.
Section 10(h) of the Federal Deposit Insurance Act (12 U.S.C.
1820(h)) is amended to read as follows:
‘‘(h) COORDINATION OF EXAMINATION AUTHORITY.—
‘‘(1) STATE BANK SUPERVISORS OF HOME AND HOST STATES.—
‘‘(A) HOME
STATE
OF
BANK.—The appropriate State
bank supervisor of the home State of an insured State
bank has authority to examine and supervise the bank.
‘‘(B) HOST STATE BRANCHES.—The State bank super-
visor of the home State of an insured State bank and
any State bank supervisor of an appropriate host State
shall exercise its respective authority to supervise and
examine the branches of the bank in a host State in accord-
ance with the terms of any applicable cooperative agree-
ment between the home State bank supervisor and the
State bank supervisor of the relevant host State.
Applicability.
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PUBLIC LAW 109–351—OCT. 13, 2006
‘‘(C) SUPERVISORY FEES.—Except as expressly provided
in a cooperative agreement between the State bank super-
visors of the home State and any host State of an insured
State bank, only the State bank supervisor of the home
State of an insured State bank may levy or charge State
supervisory fees on the bank.
‘‘(2) HOST STATE EXAMINATION.—
‘‘(A) IN GENERAL.—With respect to a branch operated
in a host State by an out-of-State insured State bank
that resulted from an interstate merger transaction
approved under section 44, or that was established in such
State pursuant to section 5155(g) of the Revised Statutes
of the United States, the third undesignated paragraph
of section 9 of the Federal Reserve Act or section 18(d)(4)
of this Act, the appropriate State bank supervisor of such
host State may—
‘‘(i) with written notice to the State bank super-
visor of the bank’s home State and subject to the
terms of any applicable cooperative agreement with
the State bank supervisor of such home State, examine
such branch for the purpose of determining compliance
with host State laws that are applicable pursuant to
section 24(j), including those that govern community
reinvestment, fair lending, and consumer protection;
and
‘‘(ii) if expressly permitted under and subject to
the terms of a cooperative agreement with the State
bank supervisor of the bank’s home State or if such
out-of-State insured State bank has been determined
to be in a troubled condition by either the State bank
supervisor of the bank’s home State or the bank’s
appropriate Federal banking agency, participate in the
examination of the bank by the State bank supervisor
of the bank’s home State to ascertain that the activities
of the branch in such host State are not conducted
in an unsafe or unsound manner.
‘‘(B) NOTICE OF DETERMINATION.—
‘‘(i) IN GENERAL.—The State bank supervisor of
the home State of an insured State bank shall notify
the State bank supervisor of each host State of the
bank if there has been a final determination that the
bank is in a troubled condition.
‘‘(ii) TIMING OF NOTICE.—The State bank super-
visor of the home State of an insured State bank shall
provide notice under clause (i) as soon as is reasonably
possible, but in all cases not later than 15 business
days after the date on which the State bank supervisor
has made such final determination or has received
written notification of such final determination.
‘‘(3) HOST STATE ENFORCEMENT.—If the State bank super-
visor of a host State determines that a branch of an out-
of-State insured State bank is violating any law of the host
State that is applicable to such branch pursuant to section
24(j), including a law that governs community reinvestment,
fair lending, or consumer protection, the State bank supervisor
of the host State or, to the extent authorized by the law of
the host State, a host State law enforcement officer may, with
Deadline.
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written notice to the State bank supervisor of the bank’s home
State and subject to the terms of any applicable cooperative
agreement with the State bank supervisor of the bank’s home
State, undertake such enforcement actions and proceedings
as would be permitted under the law of the host State as
if the branch were a bank chartered by that host State.
‘‘(4) COOPERATIVE AGREEMENT.—
‘‘(A) IN GENERAL.—The State bank supervisors from
2 or more States may enter into cooperative agreements
to facilitate State regulatory supervision of State banks,
including cooperative agreements relating to the coordina-
tion of examinations and joint participation in examina-
tions.
‘‘(B) DEFINITION.—For purposes of this subsection, the
term ‘cooperative agreement’ means a written agreement
that is signed by the home State bank supervisor and
the host State bank supervisor to facilitate State regulatory
supervision of State banks, and includes nationwide or
multi-State cooperative agreements and cooperative agree-
ments solely between the home State and host State.
‘‘(C) RULE OF CONSTRUCTION.—Except for State bank
supervisors, no provision of this subsection relating to such
cooperative agreements shall be construed as limiting in
any way the authority of home State and host State law
enforcement officers, regulatory supervisors, or other offi-
cials that have not signed such cooperative agreements
to enforce host State laws that are applicable to a branch
of an out-of-State insured State bank located in the host
State pursuant to section 24(j).
‘‘(5) FEDERAL REGULATORY AUTHORITY.—No provision of this
subsection shall be construed as limiting in any way the
authority of any Federal banking agency.
‘‘(6) STATE TAXATION AUTHORITY NOT AFFECTED.—No provi-
sion of this subsection shall be construed as affecting 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 bank, bank holding company, or foreign bank,
to the extent that such tax or tax method is otherwise permis-
sible by or under the Constitution of the United States or
other Federal law.
‘‘(7) DEFINITIONS.—For purpose of this section, the following
definitions shall apply:
‘‘(A) HOST STATE, HOME STATE, OUT-OF-STATE BANK.—
The terms ‘host State’, ‘home State’, and ‘out-of-State bank’
have the same meanings as in section 44(g).
‘‘(B) STATE SUPERVISORY FEES.—The term ‘State super-
visory fees’ means assessments, examination fees, branch
fees, license fees, and all other fees that are levied or
charged by a State bank supervisor directly upon an
insured State bank or upon branches of an insured State
bank.
‘‘(C) TROUBLED
CONDITION.—Solely for purposes of
paragraph (2)(B), an insured State bank has been deter-
mined to be in ‘troubled condition’ if the bank—
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‘‘(i) has a composite rating, as determined in its
most recent report of examination, of 4 or 5 under
the Uniform Financial Institutions Ratings System;
‘‘(ii) is subject to a proceeding initiated by the
Corporation for termination or suspension of deposit
insurance; or
‘‘(iii) is subject to a proceeding initiated by the
State bank supervisor of the bank’s home State to
vacate, revoke, or terminate the charter of the bank,
or to liquidate the bank, or to appoint a receiver for
the bank.
‘‘(D) FINAL
DETERMINATION.—For purposes of para-
graph (2)(B), the term ‘final determination’ means the
transmittal of a report of examination to the bank or trans-
mittal of official notice of proceedings to the bank.’’.
SEC. 712. DEPUTY DIRECTOR; SUCCESSION AUTHORITY FOR DIRECTOR
OF THE OFFICE OF THRIFT SUPERVISION.
(a) ESTABLISHMENT OF POSITION OF DEPUTY DIRECTOR.—Section
3(c)(5) of the Home Owners’ Loan Act (12 U.S.C. 1462a(c)(5)) is
amended to read as follows:
‘‘(5) DEPUTY DIRECTOR.—
‘‘(A) IN GENERAL.—The Secretary of the Treasury shall
appoint a Deputy Director, and may appoint not more
than 3 additional Deputy Directors of the Office.
‘‘(B) FIRST DEPUTY DIRECTOR.—If the Secretary of the
Treasury appoints more than 1 Deputy Director of the
Office, the Secretary shall designate one such appointee
as the First Deputy Director.
‘‘(C) DUTIES.—Each Deputy Director appointed under
this paragraph shall take an oath of office and perform
such duties as the Director shall direct.
‘‘(D) COMPENSATION AND BENEFITS.—The Director shall
fix the compensation and benefits for each Deputy Director
in accordance with this Act.’’.
(b) SERVICE OF DEPUTY DIRECTOR AS ACTING DIRECTOR.—Sec-
tion 3(c)(3) of the Home Owners’ Loan Act (12 U.S.C. 1462a(c)(3))
is amended—
(1) by striking ‘‘VACANCY.—A vacancy in the position of
Director’’ and inserting ‘‘VACANCY.—
‘‘(A) IN
GENERAL.—A vacancy in the position of
Director’’; and
(2) by adding at the end the following:
‘‘(B) ACTING DIRECTOR.—
‘‘(i) IN GENERAL.—In the event of a vacancy in
the position of Director or during the absence or dis-
ability of the Director, the Deputy Director shall serve
as Acting Director.
‘‘(ii) SUCCESSION IN CASE OF 2 OR MORE DEPUTY
DIRECTORS.—If there are 2 or more Deputy Directors
serving at the time a vacancy in the position of Director
occurs or the absence or disability of the Director com-
mences, the First Deputy Director shall serve as Acting
Director under clause (i) followed by such other Deputy
Directors under any order of succession the Director
may establish.
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PUBLIC LAW 109–351—OCT. 13, 2006
‘‘(iii) 
AUTHORITY
OF
ACTING
DIRECTOR.—Any
Deputy Director, while serving as Acting Director
under this subparagraph, shall be vested with all
authority, duties, and privileges of the Director under
this Act and any other provision of Federal law.’’.
SEC. 713. OFFICE OF THRIFT SUPERVISION REPRESENTATION ON
BASEL COMMITTEE ON BANKING SUPERVISION.
(a) IN GENERAL.—Section 912 of the International Lending
Supervision Act of 1983 (12 U.S.C. 3911) is amended—
(1) in the section heading, by inserting at the end the
following: ‘‘AND THE OFFICE OF THRIFT SUPERVISION’’;
(2) by striking ‘‘As one of the three’’ and inserting the
following:
‘‘(a) IN GENERAL.—As one of the 4’’; and
(3) by adding at the end the following:
‘‘(b) As one of the 4 Federal bank regulatory and supervisory
agencies, the Office of Thrift Supervision shall be given equal rep-
resentation with the Board of Governors of the Federal Reserve
System, the Office of the Comptroller of the Currency, and the
Federal Deposit Insurance Corporation on the Committee on
Banking Regulations and Supervisory Practices of the Group of
Ten Countries and Switzerland.’’.
(b) CONFORMING AMENDMENTS.—Section 910(a) of the Inter-
national Lending Supervision Act of 1983 (12 U.S.C. 3909(a)) is
amended—
(1) in paragraph (2), by striking ‘‘insured bank’’ and
inserting ‘‘insured depository institution’’; and
(2) in paragraph (3), by striking ‘‘an ‘insured bank’, as
such term is used in section 3(h)’’ and inserting ‘‘an ‘insured
depository institution’, as such term is defined in section
3(c)(2)’’.
SEC. 714. FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.
(a) COUNCIL MEMBERSHIP.—Section 1004(a) of the Federal
Financial Institutions Examination Council Act of 1978 (12 U.S.C.
3303(a)) is amended—
(1) in paragraph (4), by striking ‘‘Thrift’’ and all that follows
through the end of the paragraph and inserting ‘‘Thrift Super-
vision,’’;
(2) in paragraph (5) by striking the period at the end
and inserting ‘‘, and’’; and
(3) by adding at the end the following:
‘‘(6) the Chairman of the State Liaison Committee.’’.
(b) CHAIRPERSON OF LIAISON COMMITTEE.—Section 1007 of the
Federal Financial Institutions Examination Council Act of 1978
(12 U.S.C. 3306) is amended by adding at the end the following:
‘‘Members of the Liaison Committee shall elect a chairperson from
among the members serving on the committee.’’.
SEC. 715. TECHNICAL AMENDMENTS RELATING TO INSURED INSTITU-
TIONS.
(a) TECHNICAL AMENDMENT TO THE FEDERAL DEPOSIT INSUR-
ANCE ACT.—Section 8(i)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1818(i)(3)) is amended by inserting ‘‘or order’’ after
‘‘notice’’ each place that term appears.
(b) TECHNICAL AMENDMENT TO THE FEDERAL CREDIT UNION
ACT.—Section 206(k)(3) of the Federal Credit Union Act (12 U.S.C.
Government
organization.
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PUBLIC LAW 109–351—OCT. 13, 2006
1786(k)(3)) is amended by inserting ‘‘or order’’ after ‘‘notice’’ each
place that term appears.
SEC. 716. CLARIFICATION OF ENFORCEMENT AUTHORITY.
(a) ACTIONS ON APPLICATIONS, NOTICES, AND OTHER REQUESTS;
CLARIFICATION
THAT
CHANGE
IN
CONTROL
CONDITIONS
ARE
ENFORCEABLE.—Section 8 of the Federal Deposit Insurance Act
(12 U.S.C. 1818) is amended—
(1) in subsection (b)(1), in the first sentence, by striking
‘‘the granting of any application or other request by the deposi-
tory institution’’ and inserting ‘‘any action on any application,
notice, or other request by the depository institution or institu-
tion-affiliated party,’’;
(2) in subsection (e)(1)(A)(i)(III), by striking ‘‘the grant of
any application or other request by such depository institution’’
and inserting ‘‘any action on any application, notice, or request
by such depository institution or institution-affiliated party’’;
and
(3) in subsection (i)(2)(A)(iii), by striking ‘‘the grant of any
application or other request by such depository institution’’
and inserting ‘‘any action on any application, notice, or other
request by the depository institution or institution-affiliated
party’’.
(b) CLARIFICATION THAT CHANGE IN CONTROL CONDITIONS ARE
ENFORCEABLE.—Section 206 of the Federal Credit Union Act (12
U.S.C. 1786) is amended—
(1) in subsection (b)(1), in the first sentence, by striking
‘‘the granting of any application or other request by the credit
union’’ and inserting ‘‘any action on any application, notice,
or other request by the credit union or institution-affiliated
party,’’;
(2) in subsection (g)(1)(A)(i)(III), by striking ‘‘the grant of
any application or other request by such credit union’’ and
inserting ‘‘any action on any application, notice, or request
by such credit union or institution-affiliated party’’; and
(3) in subsection (k)(2)(A)(iii), by striking ‘‘the grant of
any application or other request by such credit union’’ and
inserting ‘‘any action on any application, notice, or other request
by the credit union or institution-affiliated party’’.
SEC. 717. FEDERAL BANKING AGENCY AUTHORITY TO ENFORCE
DEPOSIT INSURANCE CONDITIONS.
Section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818) is amended—
(1) in subsection (b)(1), in the 1st sentence—
(A) by striking ‘‘in writing by the agency’’ and inserting
‘‘in writing by a Federal banking agency’’; and
(B) by striking ‘‘the agency may issue and serve’’ and
inserting ‘‘the appropriate Federal banking agency for the
depository institution may issue and serve’’;
(2) in subsection (e)(1)—
(A) in subparagraph (A)(i)(III), by striking ‘‘in writing
by the appropriate Federal banking agency’’ and inserting
‘‘in writing by a Federal banking agency’’; and
(B) in the undesignated matter at the end, by striking
‘‘the agency may serve upon such party’’ and inserting
‘‘the appropriate Federal banking agency for the depository
institution may serve upon such party’’; and
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PUBLIC LAW 109–351—OCT. 13, 2006
(3) in subsection (i)(2)(A)(iii), by striking ‘‘in writing by
the appropriate Federal banking agency’’ and inserting ‘‘in
writing by a Federal banking agency’’.
SEC. 718. RECEIVER OR CONSERVATOR CONSENT REQUIREMENT.
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 11(e)(13) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(13)) is
amended by adding at the end the following:
‘‘(C) CONSENT REQUIREMENT.—
‘‘(i) IN
GENERAL.—Except as otherwise provided
by this section or section 15, no person may exercise
any right or power to terminate, accelerate, or declare
a default under any contract to which the depository
institution is a party, or to obtain possession of or
exercise control over any property of the institution
or affect any contractual rights of the institution, with-
out the consent of the conservator or receiver, as appro-
priate, during the 45-day period beginning on the date
of the appointment of the conservator, or during the
90-day period beginning on the date of the appointment
of the receiver, as applicable.
‘‘(ii) CERTAIN
EXCEPTIONS.—No provision of this
subparagraph shall apply to a director or officer
liability insurance contract or a depository institution
bond, to the rights of parties to certain qualified finan-
cial contracts pursuant to paragraph (8), or to the
rights of parties to netting contracts pursuant to sub-
title A of title IV of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C. 4401
et seq.), or shall be construed as permitting the conser-
vator or receiver to fail to comply with otherwise
enforceable provisions of such contract.
‘‘(iii) RULE
OF
CONSTRUCTION.—Nothing in this
subparagraph shall be construed to limit or otherwise
affect the applicability of title 11, United States Code.’’.
(b) INSURED CREDIT UNIONS.—Section 207(c)(12) of the Federal
Credit Union Act (12 U.S.C. 1787(c)(12)) is amended by adding
the following:
‘‘(C) CONSENT REQUIREMENT.—
‘‘(i) IN
GENERAL.—Except as otherwise provided
by this section, no person may exercise any right or
power to terminate, accelerate, or declare a default
under any contract to which the credit union is a
party, or to obtain possession of or exercise control
over any property of the credit union or affect any
contractual rights of the credit union, without the con-
sent of the conservator or liquidating agent, as appro-
priate, during the 45-day period beginning on the date
of the appointment of the conservator, or during the
90-day period beginning on the date of the appointment
of the liquidating agent, as applicable.
‘‘(ii) CERTAIN
EXCEPTIONS.—No provision of this
subparagraph shall apply to a director or officer
liability insurance contract or a credit union bond,
or to the rights of parties to certain qualified financial
contracts pursuant to paragraph (8), or shall be con-
strued as permitting the conservator or liquidating
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120 STAT. 1998
PUBLIC LAW 109–351—OCT. 13, 2006
agent to fail to comply with otherwise enforceable
provisions of such contract.
‘‘(iii) RULE
OF
CONSTRUCTION.—Nothing in this
subparagraph shall be construed to limit or otherwise
affect the applicability of title 11, United States Code.’’.
SEC. 719. ACQUISITION OF FICO SCORES.
Section 604(a) of the Fair Credit Reporting Act (15 U.S.C.
1681b(a)) is amended by adding at the end the following:
‘‘(6) To the Federal Deposit Insurance Corporation or the
National Credit Union Administration as part of its preparation
for its appointment or as part of its exercise of powers, as
conservator, receiver, or liquidating agent for an insured deposi-
tory institution or insured credit union under the Federal
Deposit Insurance Act or the Federal Credit Union Act, or
other applicable Federal or State law, or in connection with
the resolution or liquidation of a failed or failing insured deposi-
tory institution or insured credit union, as applicable.’’.
SEC. 
720. 
ELIMINATION 
OF 
CRIMINAL 
INDICTMENTS 
AGAINST
RECEIVERSHIPS.
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 15(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1825(b)) is amended by
inserting immediately after paragraph (3) the following:
‘‘(4) EXEMPTION FROM CRIMINAL PROSECUTION.—The Cor-
poration shall be exempt from all prosecution by the United
States or any State, county, municipality, or local authority
for any criminal offense arising under Federal, State, county,
municipal, or local law, which was allegedly committed by
the institution, or persons acting on behalf of the institution,
prior to the appointment of the Corporation as receiver.’’.
(b) INSURED CREDIT UNIONS.—Section 207(b)(2) of the Federal
Credit Union Act (12 U.S.C. 1787(b)(2)) is amended by adding
at the end the following:
‘‘(K) EXEMPTION
FROM
CRIMINAL
PROSECUTION.—The
Administration shall be exempt from all prosecution by
the United States or any State, county, municipality, or
local authority for any criminal offense arising under Fed-
eral, State, county, municipal, or local law, which was
allegedly committed by a credit union, or persons acting
on behalf of a credit union, prior to the appointment of
the Administration as liquidating agent.’’.
SEC. 721. RESOLUTION OF DEPOSIT INSURANCE DISPUTES.
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 11(f) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(f)) is amended by
striking paragraphs (3) through (5) and inserting the following:
‘‘(3) RESOLUTION
OF
DISPUTES.—A determination by the
Corporation regarding any claim for insurance coverage shall
be treated as a final determination for purposes of this section.
In its discretion, the Corporation may promulgate regulations
prescribing procedures for resolving any disputed claim relating
to any insured deposit or any determination of insurance cov-
erage with respect to any deposit.
‘‘(4) REVIEW
OF
CORPORATION
DETERMINATION.—A final
determination made by the Corporation regarding any claim
for insurance coverage shall be a final agency action reviewable
in accordance with chapter 7 of title 5, United States Code,
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120 STAT. 1999
PUBLIC LAW 109–351—OCT. 13, 2006
by the United States district court for the Federal judicial
district where the principal place of business of the depository
institution is located.
‘‘(5) STATUTE OF LIMITATIONS.—Any request for review of
a final determination by the Corporation regarding any claim
for insurance coverage shall be filed with the appropriate
United States district court not later than 60 days after the
date on which such determination is issued.’’.
(b) INSURED CREDIT UNIONS.—Section 207(d) of the Federal
Credit Union Act (12 U.S.C. 1787(d)) is amended by striking para-
graphs (3) through (5) and inserting the following:
‘‘(3) RESOLUTION
OF
DISPUTES.—A determination by the
Administration regarding any claim for insurance coverage
shall be treated as a final determination for purposes of this
section. In its discretion, the Board may promulgate regulations
prescribing procedures for resolving any disputed claim relating
to any insured deposit or any determination of insurance cov-
erage with respect to any deposit. A final determination made
by the Board regarding any claim for insurance coverage shall
be a final agency action reviewable in accordance with chapter
7 of title 5, United States Code, by the United States district
court for the Federal judicial district where the principal place
of business of the credit union is located.
‘‘(4) STATUTE OF LIMITATIONS.—Any request for review of
a final determination by the Board regarding any claim for
insurance coverage shall be filed with the appropriate United
States district court not later than 60 days after the date
on which such determination is issued.’’.
SEC. 722. RECORDKEEPING.
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 11(d)(15)(D)
of the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(15)(D))
is amended—
(1) by striking ‘‘After the end of the 6-year period’’ and
inserting the following:
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), after the end of the 6-year period’’; and
(2) by adding at the end the following:
‘‘(ii) OLD
RECORDS.—Notwithstanding clause (i),
the Corporation may destroy records of an insured
depository institution which are at least 10 years old
as of the date on which the Corporation is appointed
as the receiver of such depository institution in accord-
ance with clause (i) at any time after such appointment
is final, without regard to the 6-year period of limita-
tion contained in clause (i).’’.
(b) INSURED CREDIT UNIONS.—Section 207(b)(15)(D) of the Fed-
eral Credit Union Act (12 U.S.C. 1787(b)(15)(D)) is amended—
(1) by striking ‘‘After the end of the 6-year period’’ and
inserting the following:
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), after the end of the 6-year period’’; and
(2) by adding at the end the following:
‘‘(ii) OLD RECORDS.—Notwithstanding clause (i) the
Board may destroy records of an insured credit union
which are at least 10 years old as of the date on
which the Board is appointed as liquidating agent of
Deadline.
Deadline.
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120 STAT. 2000
PUBLIC LAW 109–351—OCT. 13, 2006
such credit union in accordance with clause (i) at any
time after such appointment is final, without regard
to the 6-year period of limitation contained in clause
(i).’’.
SEC. 723. PRESERVATION OF RECORDS.
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 10(f) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(f)) is amended to
read as follows:
‘‘(f) PRESERVATION OF AGENCY RECORDS.—
‘‘(1) IN GENERAL.—A Federal banking agency may cause
any and all records, papers, or documents kept by the agency
or in the possession or custody of the agency to be—
‘‘(A) photographed or microphotographed or otherwise
reproduced upon film; or
‘‘(B) preserved in any electronic medium or format
which is capable of—
‘‘(i) being read or scanned by computer; and
‘‘(ii) being reproduced from such electronic medium
or format by printing any other form of reproduction
of electronically stored data.
‘‘(2) TREATMENT AS ORIGINAL RECORDS.—Any photographs,
microphotographs, or photographic film or copies thereof
described in paragraph (1)(A) or reproduction of electronically
stored data described in paragraph (1)(B) shall be deemed
to be an original record for all purposes, including introduction
in evidence in all State and Federal courts or administrative
agencies, and shall be admissible to prove any act, transaction,
occurrence, or event therein recorded.
‘‘(3) AUTHORITY OF THE FEDERAL BANKING AGENCIES.—Any
photographs, microphotographs, or photographic film or copies
thereof described in paragraph (1)(A) or reproduction of elec-
tronically stored data described in paragraph (1)(B) shall be
preserved in such manner as the Federal banking agency shall
prescribe, and the original records, papers, or documents may
be destroyed or otherwise disposed of as the Federal banking
agency may direct.’’.
(b) INSURED CREDIT UNIONS.—Section 206(s) of the Federal
Credit Union Act (12 U.S.C. 1786(s)) is amended by adding at
the end the following:
‘‘(9) PRESERVATION OF RECORDS.—
‘‘(A) IN GENERAL.—The Board may cause any and all
records, papers, or documents kept by the Administration
or in the possession or custody of the Administration to
be—
‘‘(i) photographed or microphotographed or other-
wise reproduced upon film; or
‘‘(ii) preserved in any electronic medium or format
which is capable of—
‘‘(I) being read or scanned by computer; and
‘‘(II) being reproduced from such electronic
medium or format by printing or any other form
of reproduction of electronically stored data.
‘‘(B) TREATMENT AS ORIGINAL RECORDS.—Any photo-
graphs, micrographs, or photographic film or copies thereof
described in subparagraph (A)(i) or reproduction of elec-
tronically stored data described in subparagraph (A)(ii)
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120 STAT. 2001
PUBLIC LAW 109–351—OCT. 13, 2006
shall be deemed to be an original record for all purposes,
including introduction in evidence in all State and Federal
courts or administrative agencies, and shall be admissible
to prove any act, transaction, occurrence, or event therein
recorded.
‘‘(C) AUTHORITY OF THE ADMINISTRATION.—Any photo-
graphs, microphotographs, or photographic film or copies
thereof described in subparagraph (A)(i) or reproduction
of electronically stored data described in subparagraph
(A)(ii) shall be preserved in such manner as the Administra-
tion shall prescribe, and the original records, papers, or
documents may be destroyed or otherwise disposed of as
the Administration may direct.’’.
SEC. 724. TECHNICAL AMENDMENTS TO INFORMATION SHARING
PROVISION IN THE FEDERAL DEPOSIT INSURANCE ACT.
Section 11(t) of the Federal Deposit Insurance Act (12 U.S.C.
1821(t)) is amended—
(1) in paragraph (1), by inserting ‘‘, in any capacity,’’ after
‘‘A covered agency’’; and
(2) in paragraph (2)(A)—
(A) in clause (i), by striking ‘‘appropriate’’;
(B) by striking clause (ii); and
(C) by redesignating clauses (iii) through (vi) as clauses
(ii) through (v), respectively.
SEC. 725. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO
BANKS OPERATING UNDER THE CODE OF LAW FOR THE
DISTRICT OF COLUMBIA.
(a) FEDERAL RESERVE ACT.—The Federal Reserve Act (12 U.S.C.
221 et seq.) is amended—
(1) in the second undesignated paragraph of the first section
(12 U.S.C. 221), by adding at the end the following: ‘‘For pur-
poses of this Act, a State bank includes any bank which is
operating under the Code of Law for the District of Columbia.’’;
and
(2) in the first sentence of the first undesignated paragraph
of section 9 (12 U.S.C. 321), by striking ‘‘incorporated by special
law of any State, or’’ and inserting ‘‘incorporated by special
law of any State, operating under the Code of Law for the
District of Columbia, or’’.
(b) BANK CONSERVATION ACT.—Section 202 of the Bank Con-
servation Act (12 U.S.C. 202) is amended—
(1) by striking ‘‘means (1) any national’’ and inserting
‘‘means any national’’; and
(2) by striking ‘‘, and (2) any bank or trust company located
in the District of Columbia and operating under the supervision
of the Comptroller of the Currency’’.
(c) DEPOSITORY INSTITUTION DEREGULATION
AND MONETARY
CONTROL ACT OF 1980.—Part C of title VII of the Depository Institu-
tion Deregulation and Monetary Control Act of 1980 (12 U.S.C.
216 et seq.) is amended—
(1) in paragraph (1) of section 731 (12 U.S.C. 216(1)),
by striking ‘‘and closed banks in the District of Columbia’’;
and
(2) in paragraph (2) of section 732 (12 U.S.C. 216a(2)),
by striking ‘‘or closed banks in the District of Columbia’’.
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(d) FEDERAL DEPOSIT INSURANCE ACT.—Section 3(a)(2)(B) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(a)(2)(B)) is
amended by striking ‘‘(except a national bank)’’.
(e) NATIONAL BANK CONSOLIDATION AND MERGER ACT.—Section
7(1) of the National Bank Consolidation and Merger Act (12 U.S.C.
215b(1)) is amended by striking ‘‘(except a national banking associa-
tion located in the District of Columbia)’’.
(f) ACT OF AUGUST 17, 1950.—Section 1(a) of the Act entitled
‘‘An Act to provide for the conversion of national banking associa-
tions into and their merger or consolidation with State banks,
and for other purposes’’ and approved August 17, 1950 (12 U.S.C.
214(a)) is amended by striking ‘‘(except a national banking associa-
tion)’’.
(g) FEDERAL TRADE COMMISSION ACT.—Section 18(f)(2) of the
Federal Trade Commission Act (15 U.S.C. 57a(f)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘, banks operating
under the code of law for the District of Columbia,’’; and
(2) in subparagraph (B), by striking ‘‘and banks operating
under the code of law for the District of Columbia’’.
SEC. 726. TECHNICAL CORRECTIONS TO THE FEDERAL CREDIT UNION
ACT.
The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is
amended as follows:
(1) In section 101(3), strike ‘‘and’’ after the semicolon.
(2) In section 101(5), strike the terms ‘‘account account’’
and ‘‘account accounts’’ each place any such term appears and
insert ‘‘account’’.
(3) In section 107(5)(E), strike the period at the end and
insert a semicolon.
(4) In each of paragraphs (6) and (7) of section 107, strike
the period at the end and insert a semicolon.
(5) In section 107(7)(D), strike ‘‘the Federal Savings and
Loan Insurance Corporation or’’.
(6) In section 107(7)(E), strike ‘‘the Federal Home Loan
Bank Board,’’ and insert ‘‘the Federal Housing Finance Board,’’.
(7) In section 107(9), strike ‘‘subchapter III’’ and insert
‘‘title III’’.
(8) In section 107(13), strike ‘‘and’’ after the semicolon
at the end.
(9) In section 109(c)(2)(A)(i), strike ‘‘(12 U.S.C. 4703(16))’’.
(10) In section 120(h), strike ‘‘the Act approved July 30,
1947 (6 U.S.C., secs. 6–13),’’ and insert ‘‘chapter 93 of title
31, United States Code,’’.
(11) In section 201(b)(5), strike ‘‘section 116 of’’.
(12) In section 202(h)(3), strike ‘‘section 207(c)(1)’’ and
insert ‘‘section 207(k)(1)’’.
(13) In section 204(b), strike ‘‘such others powers’’ and
insert ‘‘such other powers’’.
(14) In section 206(e)(3)(D), strike ‘‘and’’ after the semicolon
at the end.
(15) In section 206(f)(1), strike ‘‘subsection (e)(3)(B)’’ and
insert ‘‘subsection (e)(3)’’.
(16) In section 206(g)(7)(D), strike ‘‘and subsection (1)’’.
(17) In section 206(t)(2)(B), insert ‘‘regulations’’ after ‘‘as
defined in’’.
12 USC 1786.
12 USC 1784.
12 USC 1782.
12 USC 1781.
12 USC 1766.
12 USC 1759.
12 USC 1757.
12 USC 1752.
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120 STAT. 2003
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(18) In section 206(t)(2)(C), strike ‘‘material affect’’ and
insert ‘‘material effect’’.
(19) In section 206(t)(4)(A)(ii)(II), strike ‘‘or’’ after the semi-
colon at the end.
(20) In section 206A(a)(2)(A), strike ‘‘regulator agency’’ and
insert ‘‘regulatory agency’’.
(21) In section 207(c)(5)(B)(i)(I), insert ‘‘and’’ after the semi-
colon at the end.
(22) In the heading for subparagraph (A) of section
207(d)(3), strike ‘‘TO’’ and insert ‘‘WITH’’.
(23) In section 207(f)(3)(A), strike ‘‘category or claimants’’
and insert ‘‘category of claimants’’.
(24) In section 209(a)(8), strike the period at the end and
insert a semicolon.
(25) In section 216(n), insert ‘‘any action’’ before ‘‘that is
required’’.
(26) In section 304(b)(3), strike ‘‘the affairs or such credit
union’’ and insert ‘‘the affairs of such credit union’’.
(27) In section 310, strike ‘‘section 102(e)’’ and insert ‘‘sec-
tion 102(d)’’.
SEC. 727. REPEAL OF OBSOLETE PROVISIONS OF THE BANK HOLDING
COMPANY ACT OF 1956.
(a) IN GENERAL.—Section 2 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841) is amended—
(1) in subsection (c)(2), by striking subparagraphs (I) and
(J); and
(2) by striking subsection (m) and inserting the following:
‘‘(m) [Repealed]’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—Paragraphs
(1) and (2) of section 4(h) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(h)) are each amended by striking ‘‘(G), (H),
(I), or (J) of section 2(c)(2)’’ and inserting ‘‘(G), or (H) of section
2(c)(2)’’.
SEC. 728. DEVELOPMENT OF MODEL PRIVACY FORM.
Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803),
as amended by section 609, is amended by adding at the end
the following:
‘‘(e) MODEL FORMS.—
‘‘(1) IN
GENERAL.—The agencies referred to in section
504(a)(1) shall jointly develop a model form which may be
used, at the option of the financial institution, for the provision
of disclosures under this section.
‘‘(2) FORMAT.—A model form developed under paragraph
(1) shall—
‘‘(A) be comprehensible to consumers, with a clear for-
mat and design;
‘‘(B) provide for clear and conspicuous disclosures;
‘‘(C) enable consumers easily to identify the sharing
practices of a financial institution and to compare privacy
practices among financial institutions; and
‘‘(D) be succinct, and use an easily readable type font.
‘‘(3) TIMING.—A model form required to be developed by
this subsection shall be issued in proposed form for public
comment not later than 180 days after the date of enactment
of this subsection.
Deadline.
12 USC 1795i.
12 USC 1795c.
12 USC 1790d.
12 USC 1789.
12 USC 1787.
12 USC 1786a.
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‘‘(4) SAFE HARBOR.—Any financial institution that elects
to provide the model form developed by the agencies under
this subsection shall be deemed to be in compliance with the
disclosures required under this section.’’.
TITLE VIII—FAIR DEBT COLLECTION
PRACTICES ACT AMENDMENTS
SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCEMENT PRO-
GRAMS.
(a) IN GENERAL.—The Fair Debt Collection Practices Act (15
U.S.C. 1692 et seq.) is amended—
(1) by redesignating section 818 as section 819; and
(2) by inserting after section 817 the following:
‘‘§ 818. Exception for certain bad check enforcement pro-
grams operated by private entities
‘‘(a) IN GENERAL.—
‘‘(1) TREATMENT
OF
CERTAIN
PRIVATE
ENTITIES.—Subject
to paragraph (2), a private entity shall be excluded from the
definition of a debt collector, pursuant to the exception provided
in section 803(6), with respect to the operation by the entity
of a program described in paragraph (2)(A) under a contract
described in paragraph (2)(B).
‘‘(2) CONDITIONS
OF
APPLICABILITY.—Paragraph (1) shall
apply if—
‘‘(A) a State or district attorney establishes, within
the jurisdiction of such State or district attorney and with
respect to alleged bad check violations that do not involve
a check described in subsection (b), a pretrial diversion
program for alleged bad check offenders who agree to
participate voluntarily in such program to avoid criminal
prosecution;
‘‘(B) a private entity, that is subject to an administra-
tive support services contract with a State or district
attorney and operates under the direction, supervision, and
control of such State or district attorney, operates the
pretrial diversion program described in subparagraph (A);
and
‘‘(C) in the course of performing duties delegated to
it by a State or district attorney under the contract, the
private entity referred to in subparagraph (B)—
‘‘(i) complies with the penal laws of the State;
‘‘(ii) conforms with the terms of the contract and
directives of the State or district attorney;
‘‘(iii) does not exercise independent prosecutorial
discretion;
‘‘(iv) contacts any alleged offender referred to in
subparagraph (A) for purposes of participating in a
program referred to in such paragraph—
‘‘(I) only as a result of any determination by
the State or district attorney that probable cause
of a bad check violation under State penal law
exists, and that contact with the alleged offender
for purposes of participation in the program is
appropriate; and
Contracts.
15 USC 1692p.
15 USC 1692
note.
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‘‘(II) the alleged offender has failed to pay
the bad check after demand for payment, pursuant
to State law, is made for payment of the check
amount;
‘‘(v) includes as part of an initial written commu-
nication with an alleged offender a clear and con-
spicuous statement that—
‘‘(I) the alleged offender may dispute the
validity of any alleged bad check violation;
‘‘(II) where the alleged offender knows, or has
reasonable cause to believe, that the alleged bad
check violation is the result of theft or forgery
of the check, identity theft, or other fraud that
is not the result of the conduct of the alleged
offender, the alleged offender may file a crime
report with the appropriate law enforcement
agency; and
‘‘(III) if the alleged offender notifies the private
entity or the district attorney in writing, not later
than 30 days after being contacted for the first
time pursuant to clause (iv), that there is a dispute
pursuant to this subsection, before further restitu-
tion efforts are pursued, the district attorney or
an employee of the district attorney authorized
to make such a determination makes a determina-
tion that there is probable cause to believe that
a crime has been committed; and
‘‘(vi) charges only fees in connection with services
under the contract that have been authorized by the
contract with the State or district attorney.
‘‘(b) CERTAIN CHECKS EXCLUDED.—A check is described in this
subsection if the check involves, or is subsequently found to
involve—
‘‘(1) a postdated check presented in connection with a pay-
day loan, or other similar transaction, where the payee of
the check knew that the issuer had insufficient funds at the
time the check was made, drawn, or delivered;
‘‘(2) a stop payment order where the issuer acted in good
faith and with reasonable cause in stopping payment on the
check;
‘‘(3) a check dishonored because of an adjustment to the
issuer’s account by the financial institution holding such
account without providing notice to the person at the time
the check was made, drawn, or delivered;
‘‘(4) a check for partial payment of a debt where the payee
had previously accepted partial payment for such debt;
‘‘(5) a check issued by a person who was not competent,
or was not of legal age, to enter into a legal contractual obliga-
tion at the time the check was made, drawn, or delivered;
or
‘‘(6) a check issued to pay an obligation arising from a
transaction that was illegal in the jurisdiction of the State
or district attorney at the time the check was made, drawn,
or delivered.
‘‘(c) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
Applicability.
Deadline.
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‘‘(1) STATE
OR
DISTRICT
ATTORNEY.—The term ‘State or
district attorney’ means the chief elected or appointed pros-
ecuting attorney in a district, county (as defined in section
2 of title 1, United States Code), municipality, or comparable
jurisdiction, including State attorneys general who act as chief
elected or appointed prosecuting attorneys in a district, county
(as so defined), municipality or comparable jurisdiction, who
may be referred to by a variety of titles such as district attor-
neys, prosecuting attorneys, commonwealth’s attorneys, solici-
tors, county attorneys, and state’s attorneys, and who are
responsible for the prosecution of State crimes and violations
of jurisdiction-specific local ordinances.
‘‘(2) CHECK.—The term ‘check’ has the same meaning as
in section 3(6) of the Check Clearing for the 21st Century
Act.
‘‘(3) BAD CHECK VIOLATION.—The term ‘bad check violation’
means a violation of the applicable State criminal law relating
to the writing of dishonored checks.’’.
(b) CLERICAL AMENDMENT.—The table of sections for the Fair
Debt Collection Practices Act (15 U.S.C. 1692 et seq.) is amended—
(1) by redesignating the item relating to section 818 as
section 819; and
(2) by inserting after the item relating to section 817 the
following new item:
‘‘818. Exception for certain bad check enforcement programs operated by private en-
tities.’’.
SEC. 802. OTHER AMENDMENTS.
(a) LEGAL PLEADINGS.—Section 809 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692g) is amended by adding at the end
the following new subsection:
‘‘(d) LEGAL PLEADINGS.—A communication in the form of a
formal pleading in a civil action shall not be treated as an initial
communication for purposes of subsection (a).’’.
(b) NOTICE PROVISIONS.—Section 809 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692g) is amended by adding after sub-
section (d) (as added by subsection (a) of this section) the following
new subsection:
‘‘(e) NOTICE PROVISIONS.—The sending or delivery of any form
or notice which does not relate to the collection of a debt and
is expressly required by the Internal Revenue Code of 1986, title
V of Gramm-Leach-Bliley Act, or any provision of Federal or State
law relating to notice of data security breach or privacy, or any
regulation prescribed under any such provision of law, shall not
be treated as an initial communication in connection with debt
collection for purposes of this section.’’.
(c) ESTABLISHMENT OF RIGHT TO COLLECT WITHIN THE FIRST
30 DAYS.—Section 809(b) of the Fair Debt Collection Practices Act
(15 U.S.C. 1692g(b)) is amended by adding at the end the following
new sentences: ‘‘Collection activities and communications that do
not otherwise violate this title may continue during the 30-day
period referred to in subsection (a) unless the consumer has notified
the debt collector in writing that the debt, or any portion of the
debt, is disputed or that the consumer requests the name and
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address of the original creditor. Any collection activities and commu-
nication during the 30-day period may not overshadow or be incon-
sistent with the disclosure of the consumer’s right to dispute the
debt or request the name and address of the original creditor.’’.
TITLE IX—CASH MANAGEMENT
MODERNIZATION
SEC. 901. COLLATERAL MODERNIZATION.
(a) IN GENERAL.—Section 9301(2) of title 31, United States
Code, is amended to read as follows:
‘‘(2) ‘eligible obligation’ means any security designated as
acceptable in lieu of a surety bond by the Secretary of the
Treasury.’’.
(b) USE OF ELIGIBLE OBLIGATIONS INSTEAD OF SURETY BONDS.—
Section 9303(a)(2) of title 31, United States Code, is amended
to read as follows:
‘‘(2) as determined by the Secretary of the Treasury, have
a market value that is equal to or greater than the amount
of the required surety bond; and’’.
(c) TECHNICAL AMENDMENTS.—Section 9303 of title 31, United
States Code, is amended—
(1) in the section heading, by striking ‘‘Government
obligations’’ and inserting ‘‘eligible obligations’’;
(2) in subsection (f), by striking ‘‘Government obligations’’
and inserting ‘‘eligible obligations’’;
(3) by striking ‘‘a Government obligation’’ each place that
term appears and inserting ‘‘an eligible obligation’’; and
(4) by striking ‘‘Government obligation’’ each place that
term appears and inserting ‘‘eligible obligation’’.
TITLE X—STUDIES AND REPORTS
SEC. 1001. STUDY AND REPORT BY THE COMPTROLLER GENERAL ON
THE CURRENCY TRANSACTION REPORT FILING SYSTEM.
(a) IN GENERAL.—The Comptroller General of the United States
shall conduct a study on the volume of currency transaction reports
filed with the Secretary of the Treasury under section 5313(a)
of title 31, United States Code.
(b) PURPOSE.—The purpose of the study required under sub-
section (a) shall be—
(1) to evaluate, on the basis of actual filing data, patterns
of currency transaction reports filed by depository institutions
of all sizes and locations; and
(2) to identify whether and the extent to which the filing
rules for currency transaction reports described in section
5313(a) of title 31, United States Code—
(A) are burdensome; and
(B) can or should be modified to reduce such burdens
without harming the usefulness of such filing rules to
Federal, State, and local anti-terrorism, law enforcement,
and regulatory operations.
(c) PERIOD COVERED.—The study required under subsection
(a) shall cover the period beginning at least 3 calendar years prior
to the date of enactment of this section.
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PUBLIC LAW 109–351—OCT. 13, 2006
(d) CONTENT.—The study required under subsection (a) shall
include a detailed evaluation of—
(1) the extent to which depository institutions are availing
themselves of the exemption system for the filing of currency
transaction reports set forth in section 103.22(d) of title 31,
Code of Federal Regulations, as in effect during the study
period (in this section referred to as the ‘‘exemption system’’),
including specifically, for the study period—
(A) the number of currency transaction reports filed
(out of the total annual numbers) involving companies that
are listed on the New York Stock Exchange or the NASDAQ
National Market;
(B) the number of currency transaction reports filed
by the 100 largest depository institutions in the United
States by asset size, and thereafter in tiers of 100, by
asset size;
(C) the number of currency transaction reports filed
by the 200 smallest depository institutions in the United
States, including the number of such currency transaction
reports involving companies listed on the New York Stock
Exchange or the NASDAQ National Market; and
(D) the number of currency transaction reports that
would have been filed during the filing period if the exemp-
tion system had been used by all depository institutions
in the United States;
(2) what types of depository institutions are using the
exemption system, and the extent to which such exemption
system is used;
(3) difficulties that limit the willingness or ability of deposi-
tory institutions to reduce their currency transaction reports
reporting burden by making use of the exemption system,
including considerations of cost, especially in the case of small
depository institutions;
(4) the extent to which bank examination difficulties have
limited the use of the exemption system, especially with respect
to—
(A) the exemption of privately-held companies per-
mitted under such exemption system; and
(B) whether, on a sample basis, the reaction of bank
examiners to implementation of such exemption system
is justified or inhibits use of such exemption system without
an offsetting compliance benefit;
(5) ways to improve the use of the exemption system by
depository institutions, including making such exemption
system mandatory in order to reduce the volume of currency
transaction reports unnecessarily filed; and
(6) the usefulness of currency transaction reports filed to
law enforcement agencies, taking into account—
(A) advances in information technology;
(B) the impact, including possible loss of investigative
data, that various changes in the exemption system would
have on the usefulness of such currency transaction reports;
and
(C) changes that could be made to the exemption
system without affecting the usefulness of currency trans-
action reports.
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PUBLIC LAW 109–351—OCT. 13, 2006
(e) ASSISTANCE.—The Secretary of the Treasury shall provide
such information processing and other assistance, including from
the Commissioner of the Internal Revenue Service and the Director
of the Financial Crimes Enforcement Network, to the Comptroller
General in analyzing currency transaction report filings for the
study period described in subsection (c), as is necessary to provide
the information required by subsection (a).
(f) VIEWS.—The study required under subsection (a) shall, if
appropriate, include a discussion of the views of a representative
sample of Federal, State, and local law enforcement and regulatory
officials and officials of depository institutions of all sizes.
(g) RECOMMENDATIONS.—The study required under subsection
(a) shall, if appropriate, include recommendations for changes to
the exemption system that would reflect a reduction in unnecessary
cost 
to 
depository 
institutions, 
assuming 
reasonably 
full
implementation of such exemption system, without reducing the
usefulness of the currency transaction report filing system to anti-
terrorism, law enforcement, and regulatory operations.
(h) REPORT.—Not later than 15 months after the date of enact-
ment of this section, the Comptroller General shall submit a report
on the study required under subsection (a) to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representatives.
SEC. 1002. STUDY AND REPORT ON INSTITUTION DIVERSITY AND
CONSOLIDATION.
(a) STUDY.—The Comptroller General of the United States shall
conduct a study regarding—
(1) the vast diversity in the size and complexity of institu-
tions in the banking and financial services sector, including
the differences in capital, market share, geographical limita-
tions, product offerings, and general activities;
(2) the differences in powers among the depository institu-
tion charters, including—
(A) identification of the historical trends in the evo-
lution of depository institution charters;
(B) an analysis of the impact of charter differences
to the overall safety and soundness of the banking industry,
and the effectiveness of the applicable depository institution
regulator; and
(C) an analysis of the impact that the availability
of options for depository institution charters on the develop-
ment of the banking industry;
(3) the impact that differences of size and overall com-
plexity among financial institutions makes with respect to regu-
latory oversight, efficiency, safety and soundness, and charter
options for financial institutions; and
(4) the aggregate cost and breakdown associated with regu-
latory compliance for banks, savings associations, credit unions,
or any other financial institution, including potential dispropor-
tionate impact that the cost of compliance may pose on smaller
institutions, given the percentage of personnel that the institu-
tion must dedicate solely to compliance.
(b) CONSIDERATIONS.—In conducting the study under subsection
(a), the Comptroller General shall consider the efficacy and effi-
ciency of the consolidation of financial regulators, as well as charter
simplification and homogenization.
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PUBLIC LAW 109–351—OCT. 13, 2006
LEGISLATIVE HISTORY—S. 2856:
SENATE REPORTS: No. 109–256 (Comm. on Banking, Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 152 (2006):
May 25, considered and passed Senate.
Sept. 27, considered and passed House, amended.
Sept. 29, Senate concurred in House amendment.
(c) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Comptroller General of the United States shall
submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives on the results of the study required
by this section.
Approved October 13, 2006.
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