113 S2698 IS: RELIEVE Act
U.S. Senate
2014-07-30
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited as the
Regulatory Easement for Lending Institutions that Enable a Vibrant Economy Act of 2014
or the RELIEVE Act
.(b)The table of contents for this Act is as follows:Sec. 1. Short title.
TITLE I—Expansion of small bank holding company policy statement definition
Sec. 101. Changes required to small bank holding company policy statement on assessment of
financial and managerial factors.
Sec. 102. Conforming amendment.
Sec. 103. Definitions.
TITLE II—Qualified mortgages for rural lenders
Sec. 201. Qualified mortgages for rural lenders.
TITLE III—Insurance of amounts held on behalf of others
Sec. 301. Insurance of amounts held on behalf of others.
<enum>I</enum><header>Expansion of small bank holding company policy statement definition</header><section id="id9EBF1A92A3FB457FA83E0EF912ECC791"><enum>101.</enum><header>Changes required to small bank holding company policy statement on assessment of financial and
managerial factors</header><subsection id="idAE4E31139C5F489B93F1CC463EE6DB23"><enum>(a)</enum><header>In general</header><text>Before the end of the 6-month period beginning on the date of the enactment of this Act, the Board
of Governors of the Federal Reserve System (hereafter in this Act referred
to as the <quote>Board</quote>) shall publish in the Federal
Register proposed revisions to the Small Bank Holding Company Policy
Statement on Assessment of Financial and Managerial Factors (12 C.F.R.
part
225 appendix C) that provide that the policy shall apply to bank holding
companies and savings and loan holding companies which have pro forma
consolidated
assets of less than
$1,000,000,000 and that—</text><paragraph id="idD5A9520192BD497A81730E55D52502B4"><enum>(1)</enum><text>are not engaged in significant nonbanking activities either directly or through a nonbank
subsidiary;</text></paragraph><paragraph id="idF2E5EE17383645559C8FF155BAFA7D7D"><enum>(2)</enum><text>do not conduct significant off-balance sheet activities (including securitization and asset
management or administration) either directly or through a nonbank
subsidiary; and</text></paragraph><paragraph id="idAC61968C0A274EDFAB7568343EDBE9C6"><enum>(3)</enum><text>do not have a material amount of debt or equity securities outstanding (other than trust preferred
securities) that are registered with the Securities and Exchange
Commission.</text></paragraph></subsection><subsection id="id7F0D275CCA13486994434B8CDF069901"><enum>(b)</enum><header>Exclusions</header><text>The Board
may exclude any bank holding company or savings and loan holding company,
regardless of asset size, from the policy statement under subsection (a)
if the Board determines that such action is warranted for supervisory
purposes.</text></subsection></section><section id="idFA768BEA8FCC495CA3D0BC4F3A7F2B47"><enum>102.</enum><header>Conforming amendment</header><text display-inline="no-display-inline">Section 171(b)(5)(C) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5371(b)(5)(C)) is amended by inserting <quote>or small savings and loan holding company</quote> after <quote>any small bank holding company</quote>.</text></section><section id="id80723B63F50F4417AE9075C933F8DB70"><enum>103.</enum><header>Definitions</header><text display-inline="no-display-inline">For the purposes of this title:</text><subsection id="id2CFE2B3512EF4E5088C2BBBED94BBE05"><enum>(a)</enum><header>Bank holding company</header><text>The term <term>bank holding company</term> has the same meaning as in section 2 of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841</external-xref>).</text></subsection><subsection id="id0B28BD81ABED412BAD8FA8F5428556DF"><enum>(b)</enum><header>Savings and loan holding</header><text>The term <term>savings and loan holding company</term> has the same meaning as in section 10(a) of the Home Owners' Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1467a">12 U.S.C. 1467a(a)</external-xref>).</text></subsection></section><enum>II</enum><header>Qualified mortgages for rural lenders</header><section id="id1E42F7920E7A44FBA1FAB3F91DEC0B13"><enum>201.</enum><header>Qualified mortgages for rural lenders</header><text display-inline="no-display-inline">Section 129C(b)(2) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1639c">15 U.S.C. 1639c(b)(2)</external-xref>) is amended—</text><paragraph id="idD465F489E58546E68DC8EAB78623D2A4"><enum>(1)</enum><text>in subparagraph (E)(vi)(II), by striking <quote>a limit set by the Board</quote> and inserting <quote>1,000 per year</quote>; and</text></paragraph><paragraph id="idA54424DC45164DA180C931B424A684DE"><enum>(2)</enum><text>by inserting after subparagraph (E) the following:</text><quoted-block display-inline="no-display-inline" id="idCEA7E2FDBCC34EBE9BC9013C76036EA3" style="OLC"><subparagraph id="id9A190015C623493388AD5ED816AF5241"><enum>(F)</enum><header>Rural</header><text>The term <quote>rural</quote> means any area other than—</text><clause id="id0A7B97CAEB1849E9A966CE47BC90D057"><enum>(i)</enum><text>a city or town that has a population of greater than 50,000 inhabitants; and</text></clause><clause id="idAE960199FBD44029B9DA1289F442AEB2"><enum>(ii)</enum><text>any urbanized area contiguous and adjacent to a city or town described in clause (i).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><enum>III</enum><header>Insurance of amounts held on behalf of others</header><section id="id7109A266546748A2B78103244F21BE3C"><enum>301.</enum><header>Insurance of amounts held on behalf of others</header><text display-inline="no-display-inline">Section 207(k) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1787">12 U.S.C. 1787(k)</external-xref>) is amended—</text><paragraph id="id77d7507767354b11b835c89d6486c5d8"><enum>(1)</enum><text>in paragraph (1)(A)—</text><subparagraph id="ide464df2d34ef4e77b6579e128017021b"><enum>(A)</enum><text>by inserting after <quote>payable to any member</quote> the following: <quote>, or to any person with funds lawfully held in a member account,</quote>; and</text></subparagraph><subparagraph id="iddf6bb92e62824fe28f5c276f2d244724"><enum>(B)</enum><text>by striking <quote>and paragraphs (5) and (6)</quote>;</text></subparagraph></paragraph><paragraph id="idddc348cedf9b408db08e0d46f9f45491"><enum>(2)</enum><text>in paragraph (2)(A), by striking <quote>(as determined under paragraph (5))</quote>;</text></paragraph><paragraph id="id9cb5b0ae74bb4a46af125f99d05c4543"><enum>(3)</enum><text>by redesignating paragraph (5) as paragraph (6); and</text></paragraph><paragraph id="ida8f91305ca5a478bad4e02a6e3f416b0"><enum>(4)</enum><text>by inserting after paragraph (4) the following:</text><quoted-block display-inline="no-display-inline" id="idbbc7265f88ec4293962e51a1aa14e27a" style="OLC"><paragraph id="id669de76787e84bf2b29ead7c4edc066f"><enum>(5)</enum><header>Coverage for interest on lawyers trust accounts and other similar escrow accounts</header><subparagraph id="ida4dbe9146b2345819687e29d1b11e112"><enum>(A)</enum><header>Pass-through insurance</header><text>The Administration shall provide pass-through share insurance for the deposits or shares of any
interest on lawyers trust account (commonly referred to as <quote>IOLTA</quote>) or other similar escrow accounts.</text></subparagraph><subparagraph id="id23e7fb1498bc49b5aa817639e641eec2"><enum>(B)</enum><header>Treatment of IOLTAs</header><clause id="idda86128445174b0abac8fb3d93c47a5f"><enum>(i)</enum><header>Treatment as escrow accounts</header><text>For share insurance purposes, IOLTAs are treated as escrow accounts.</text></clause><clause id="ida1fe27a1242041528295ab7e2a62730a"><enum>(ii)</enum><header>Treatment as member accounts</header><text>IOLTAs and other similar escrow accounts are considered member accounts for purposes of paragraph
(1), if the attorney administering the IOLTA or the escrow agent
administering the escrow account is a member of the insured credit union
in which the funds are held.</text></clause></subparagraph><subparagraph id="ida90ca6c49f5645db82ee2303764edfdb"><enum>(C)</enum><header>Definitions</header><text>For purposes of this paragraph:</text><clause id="idcd96590fdbbd4a029c2afd2fef75950b"><enum>(i)</enum><header>Interest on lawyers trust account</header><text>The terms <term>interest on lawyers trust account</term> or <term>IOLTA</term> mean a system in which lawyers place certain client funds in interest-bearing or dividend-bearing
accounts, with the interest or dividends then used to fund programs such
as legal service organizations who provide services to clients in need.</text></clause><clause id="idb0736f28608541688806e514462a8c58"><enum>(ii)</enum><header>Pass-through share insurance</header><text>The term <term>pass-through share insurance</term> means, with respect to IOLTAs and other similar escrow accounts, insurance coverage based on the
interest of each person on whose behalf funds are held in such accounts by
the attorney administering the IOLTA or the escrow agent administering a
similar escrow account, in accordance with regulations issued by the
Administration.</text></clause></subparagraph><subparagraph id="id868363c99c7a4f7bb83a22bf9e1fc7fc"><enum>(D)</enum><header>Rule of construction</header><text>No provision of this paragraph shall be construed as authorizing an insured credit union to accept
the deposits of an IOLTA or similar escrow account in an amount greater
than such credit union is authorized to accept under any other provision
of Federal or State law.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section>