[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3474 Engrossed in House (EH)]

103d CONGRESS

  1st Session

                               H. R. 3474

_______________________________________________________________________

                                 AN ACT

     To reduce administrative requirements for insured depository 
   institutions to the extent consistent with safe and sound banking 
  practices, to facilitate the establishment of community development 
            financial institutions, and for other purposes.






103d CONGRESS
  1st Session
                                H. R. 3474

_______________________________________________________________________

                                 AN ACT


 
     To reduce administrative requirements for insured depository 
   institutions to the extent consistent with safe and sound banking 
  practices, to facilitate the establishment of community development 
            financial institutions, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

                       TITLE I--REGULATORY REFORM

SEC. 100. SHORT TITLE; TABLE OF SECTIONS.

    (a) Short Title.--This title may be cited as the ``Regulatory 
Reform Act of 1993''.
    (b) Table of Contents.--

                       TITLE I--REGULATORY REFORM

Sec. 100. Short title; table of sections.
   Subtitle A--Amendments Relating to the Federal Deposit Insurance 
                  Corporation Improvement Act of 1991

Sec. 101. Audit costs.
Sec. 102. 18-month examination rule for certain small institutions.
Sec. 103. Standards for safety and soundness.
Sec. 104. Clarifying amendment relating to data collection.
                 Subtitle B--General Regulatory Reform

Sec. 111. State regulation of real estate appraisals.
Sec. 112. Collateralization of public deposits.
Sec. 113. Bank Deposit Financial Assistance Program.
Sec. 114. Coordinated and unified examinations.
Sec. 115. Coordination of Federal and State reporting requirements to 
                            reduce duplicative efforts.
Sec. 116. Limiting potential liability on foreign accounts.
Sec. 117. Expedited procedures for forming a bank holding company.
Sec. 118. Flexibility in choosing boards of directors.
Sec. 119. Repeal of obsolete requirements for national banks.
Sec. 120. Limited exemption authority.
                  Subtitle C--Other Regulatory Reform

Sec. 121. Elimination of duplicative disclosures for home equity loans.
Sec. 122. Alternative dispute resolutions.
Sec. 123. Clarification of RESPA disclosure requirements.
Sec. 124. Exemption of business loans from RESPA requirements.
Sec. 125. Expedited procedures for bank holding companies to seek 
                            approval to engage in certain activities.
Sec. 126. Waiver of right of rescission for certain refinancing 
                            transactions.
Sec. 127. Simplified disclosure for existing depositors.
Sec. 128. Deposit broker registration.
Sec. 129. Agency ombudsman.
Sec. 130. Alternative rules for disclosures for radio advertising of 
                            credit transactions, deposit accounts, and 
                            consumer leases.
   Subtitle D--Reports, Studies, Streamlined Regulatory Requirements

Sec. 131. Study on capital standards and their impact on the economy.
Sec. 132. Study of the consumer credit system.
Sec. 133. Studies on the impact of the payment of interest on reserves.
Sec. 134. Streamlining of regulatory requirements.
Sec. 135. Call report simplification.
Sec. 136. Administrative consideration of burden with new regulations.
Sec. 137. Elimination of duplicative filings.
Sec. 138. Recourse agreements.
Sec. 139. Antitrust reports in connection with merger transactions.
Sec. 140. Bankers' banks.
Sec. 141. Due process protections relating to attachment of assets.
Sec. 142. Time limit on agency consideration of completed applications.
Sec. 143. Timely completion of CRA review.
Sec. 144. Revisions of standards.
Sec. 145. Feasibility study of data bank.

   Subtitle A--Amendments Relating to the Federal Deposit Insurance 
                  Corporation Improvement Act of 1991

SEC. 101. AUDIT COSTS.

    (a) Holding Company Audit Requirements.--Section 36(i) of the 
Federal Deposit Insurance Act (12 U.S.C. 1831m(i)) is amended by 
striking paragraph (2) and inserting the following:
            ``(2) the institution is described in 1 of the following 
        subparagraphs:
                    ``(A) The institution has total assets, as of the 
                beginning of such fiscal year, of less than 
                $5,000,000,000.
                    ``(B) The institution has--
                            ``(i) total assets, as of the beginning of 
                        such fiscal year, of $5,000,000,000 or more and 
                        less than $9,000,000,000; and
                            ``(ii) a CAMEL composite rating of 1 or 2 
                        under the Uniform Financial Institutions Rating 
                        System (or an equivalent rating under a 
                        comparable rating system) as of the most recent 
                        examination of such institution by the 
                        Corporation or the appropriate Federal banking 
                        agency.
                    ``(C) The institution--
                            ``(i) has--
                                    ``(I) total assets, as of the 
                                beginning of such fiscal year, of 
                                $9,000,000,000 or more; and
                                    ``(II) a CAMEL composite rating of 
                                1 or 2 under the Uniform Financial 
                                Institutions Rating System (or an 
                                equivalent rating under a comparable 
                                rating system) as of the most recent 
                                examination of such institution by the 
                                Corporation or the appropriate Federal 
                                banking agency; and
                            ``(ii) in the case of an institution which 
                        has a CAMEL composite rating of 2, is in 
                        compliance with the requirements of subsection 
                        (b) (without regard to any exemption such 
                        institution may otherwise have under this 
                        subsection from the requirements of subsection 
                        (b)).
Notwithstanding paragraph (2), the audit committee of the holding 
company of an insured depository institution that the Corporation 
determines to be a large institution shall not include any large 
customers of the institution.''.
    (b) Written Notice of Requirement for Audit of Quarterly Reports.--
Section 36(g)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1831m(g)(2)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Notice to institution.--The Corporation shall 
                promptly notify an insured depository institution, in 
                writing, of a determination pursuant to subparagraph 
                (A) to require a review of such institution's quarterly 
                financial reports.''.

SEC. 102. 18-MONTH EXAMINATION RULE FOR CERTAIN SMALL INSTITUTIONS.

    (a) In General.--Section 10(d)(4) of the Federal Deposit Insurance 
Act (12 U.S.C. 1820(d)(4)) is amended--
            (1) in subparagraph (A), by striking ``$100,000,000'' and 
        inserting ``$250,000,000'';
            (2) in subparagraph (C), by striking ``and'' at the end;
            (3) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (4) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) the insured institution is not currently 
                subject to a formal enforcement proceeding or order by 
                the Corporation or the appropriate Federal banking 
                agency; and''.
    (b) Guidelines Required.--
            (1) In general.--Section 10(d) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the 
        end the following new paragraph:
            ``(6) Standards for determining adequacy of state 
        examinations.--The Financial Institutions Examination Council 
        shall prescribe guidelines establishing standards for 
        determining whether a State examination carries out the 
        purposes of this subsection for purposes of paragraph (3).''.
            (2) Effective date of initial guidelines.--The initial 
        guidelines required to be issued pursuant to the amendment made 
        by subsection (a) shall be issued and shall take effect before 
        the end of the 1-year period beginning on the date of the 
        enactment of this Act.

SEC. 103. STANDARDS FOR SAFETY AND SOUNDNESS.

    (a) Elimination of Stock Valuation Provision.--Section 39(b)(1) of 
the Federal Deposit Insurance Act (12 U.S.C. 1831p-1(b)(1)) is 
amended--
            (1) in subparagraph (A), by adding ``and'' at the end; and
            (2) by striking subparagraph (C).
    (b) Holding Companies Excluded From Scope of Standards.--Section 39 
of the Federal Deposit Insurance Act (12 U.S.C. 1831p-1) is amended--
            (1) in subsections (a) and (b), by striking ``and 
        depository institution holding companies'';
            (2) in paragraphs (1)(A) and (2) of subsection (e), by 
        striking ``or depository institution holding company''; and
            (3) in subsection (e), by striking ``or company'' each 
        place such term appears.
    (c) Establishing Standards in Guidelines.--
            (1) In general.--Section 39(d)(1) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1831p-1(d)(1)) is amended--
                    (A) in the 1st sentence, by inserting ``or 
                guideline'' before the period; and
                    (B) in the 2d sentence, by inserting ``or 
                guidelines'' after ``Such regulations''.
            (2) Clerical amendment.--The heading for section 39(d) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1831p-1(d)) is 
        amended by striking ``by Regulation''.
    (d) Effective Date.--The amendments made by subsection (a) to 
section 39 of the Federal Deposit Insurance Act shall take effect as if 
such amendments had been included in such section as of the effective 
date of the section.

SEC. 104. CLARIFYING AMENDMENT RELATING TO DATA COLLECTION.

    Section 7(a)(9) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)(9)) is amended by adding at the end the following new sentence: 
``In prescribing reporting and other requirements for the collection of 
actual and accurate information pursuant to this paragraph, the 
Corporation shall minimize the regulatory burden imposed upon insured 
depository institutions while taking into account the benefit of the 
information to the Corporation, including the use of the information to 
enable the Corporation to more accurately determine the total amount of 
insured deposits in each insured depository institution.''.

                 Subtitle B--General Regulatory Reform

SEC. 111. STATE REGULATION OF REAL ESTATE APPRAISALS.

    Section 1122 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3351) is amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Reciprocity.--The Appraisal Subcommittee shall encourage the 
States to develop reciprocity agreements that readily authorize an 
appraiser who--
            ``(1) is licensed or certified in 1 State; and
            ``(2) is in good standing with the State appraiser 
        certifying or licensing agency in such State,
to perform appraisals in other States.''; and
            (3) in subsection (a)--
                    (A) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively, and moving 
                the left margin of such subparagraphs (as so 
                redesignated) 2 ems to the right;
                    (B) by striking ``Practice.--A State'' and 
                inserting ``Practice.--
            ``(1) In general.--A State''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Fees for temporary practice.--A State appraiser 
        certifying or licensing agency shall not impose excessive fees 
        or burdensome requirements, as determined by the Appraisal 
        Subcommittee, for temporary practice under this subsection.''.

SEC. 112. COLLATERALIZATION OF PUBLIC DEPOSITS.

    Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)) is amended--
            (1) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and moving the 
        left margin of such subparagraphs (as so redesignated) 2 ems to 
        the right;
            (2) by striking ``Corporation.--No agreement'' and 
        inserting ``Corporation.--
            ``(1) In general.--No agreement''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Public deposits.--An agreement to provide for the 
        lawful collateralization of--
                    ``(A) deposits of a Federal, State, or local 
                governmental entity or any depositor referred to in 
                section 11(a)(2), including an agreement to provide 
                collateral in lieu of a surety bond;
                    ``(B) bankruptcy estate funds pursuant to section 
                345 of title 11, United States Code; or
                    ``(C) extensions of credit from any Federal reserve 
                bank or Federal home loan bank,
        shall not be deemed to be invalid pursuant to paragraph (1)(B) 
        solely because such agreement was not executed 
        contemporaneously with changes in the collateral made in 
        accordance with such agreement.''.

SEC. 113. BANK DEPOSIT FINANCIAL ASSISTANCE PROGRAM.

    (a) In General.--Effective December 19, 1993, section 7(i) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(i)) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2), the following new 
        paragraph:
            ``(3) Bank deposit financial assistance program.--
        Notwithstanding paragraph (1), funds deposited by an insured 
        depository institution pursuant to the Bank Deposit Financial 
        Assistance Program of the Department of Energy shall be 
        separately insured in an amount not to exceed $100,000 for each 
        insured depository institution depositing such funds.''.
    (b) Technical and Conforming Amendment.--Section 11(a)(1)(C) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(C)) is amended by 
striking ``section 7(i)(1)'' and inserting ``paragraph (1) or (2) of 
section 7(i) or any funds described in section 7(i)(3)''.

SEC. 114. COORDINATED AND UNIFIED EXAMINATIONS.

    Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)) is amended by inserting after paragraph (6) (as added by 
section 102(b) of this Act) the following new paragraphs:
            ``(7) Coordinated examinations.--To minimize the disruptive 
        effects of examinations on the operations of insured depository 
        institutions, each Federal banking agency shall, to the extent 
        practicable and consistent with safety and soundness principles 
        and the public interest--
                    ``(A) coordinate examinations to be conducted by 
                that agency at an insured depository institution and 
                any affiliate of such institution;
                    ``(B) coordinate with the other Federal banking 
                agencies in the conduct of such examinations;
                    ``(C) work to coordinate the conduct of all 
                examinations made pursuant to this subsection with the 
                appropriate State bank supervisor; and
                    ``(D) use copies of reports of examinations of 
                insured depository institutions made by any other 
                Federal banking agency or appropriate State bank 
                supervisor.
            ``(8) Safety and soundness exams.--Notwithstanding any 
        provision of paragraph (7) or any system established pursuant 
        to such paragraph, any appropriate Federal banking agency may 
        conduct a separate examination of an insured depository 
        institution at any time for safety and soundness purposes.''.

SEC. 115. COORDINATION OF FEDERAL AND STATE REPORTING REQUIREMENTS TO 
              REDUCE DUPLICATIVE EFFORTS.

    (a) State Access to Federal Agency Reports.--The 1st sentence of 
section 7(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(a)(2)(A)) is amended by inserting ``and, with respect to any State 
depository institution, any appropriate State bank supervisor for such 
institution'' after ``The Corporation''.
    (b) State Coordination With Federal Reporting Requirements.--The 
Federal banking agencies and State bank supervisors shall, to the 
greatest extent practicable--
            (1) coordinate the number, types, and frequency of reports 
        required to be submitted to such agencies and supervisors by 
        insured depository institutions and the type and amount of 
        information required to be included in such reports; and
            (2) use copies of reports of condition and other reports 
        submitted by such institutions to any such agency or 
        supervisor.

SEC. 116. LIMITING POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

    (a) Amendment to the Federal Reserve Act.--The Federal Reserve Act 
(12 U.S.C. 221 et seq.) is amended by inserting after section 25B the 
following new section:

``SEC. 25C. POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

    ``(a) In General.--A member bank shall not be required to repay any 
deposit made at a foreign branch of the bank if the branch cannot repay 
the deposit due to--
            ``(1) an act of war, insurrection or civil strife; or
            ``(2) an action by a foreign government or instrumentality 
        (whether de jure or de facto) in the country in which the 
        branch is located,
unless the member bank has expressly agreed in writing to repay the 
deposit under those circumstances.
    ``(b) Regulations.--The Board may prescribe such regulations as the 
Board may determine to be necessary to carry out this section.''.
    (b) Conforming Amendments to the Federal Deposit Insurance Act.--
            (1) In general.--Section 18 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1828) is amended by adding at the end 
        the following new subsection:
    ``(q) Sovereign Risk.--Section 25C of the Federal Reserve Act shall 
apply to every nonmember insured bank in the same manner and to the 
same extent as if the nonmember insured bank were a member bank.''.
            (2) Conforming amendment.--Subparagraph (A) of section 
        3(l)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(l)(5)) is amended to read as follows:
                    ``(A) any obligation of a depository institution 
                which is carried on the books and records of an office 
                of such bank or savings association located outside of 
                any State, unless--
                            ``(i) such obligation would be a deposit if 
                        it were carried on the books and records of the 
                        depository institution, and would have been 
                        payable at, an office located in any State; and
                            ``(ii) the contract evidencing the 
                        obligation provides by express terms, and not 
                        by implication, for payment at an office of the 
                        depository institution located in any State; 
                        and''.
    (c) Existing Claims Not Affected.--Section 25C of the Federal 
Reserve Act (as added by subsection (a)) shall not be applied 
retroactively and shall not be construed to affect or apply to any 
claim or cause of action (to which such section would otherwise apply) 
which arises from events or circumstances that occurred before the date 
of enactment of this Act.

SEC. 117. EXPEDITED PROCEDURES FOR FORMING A BANK HOLDING COMPANY.

    The 2d sentence of section 3(a) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1842(a)) is amended--
            (1) by striking ``or (B)'' and inserting ``(B)''; and
            (2) by inserting before the period the following: ``; or 
        (C) the acquisition, by a company, of control of a bank in a 
        reorganization in which a person or group of persons exchange 
        their shares of the bank for shares of a newly formed bank 
        holding company and receive after the reorganization 
        substantially the same proportional share interest in the 
        holding company as they held in the bank except for changes in 
        shareholders' interests resulting from the exercise of 
        dissenting shareholders' rights under State or Federal law if--
                            ``(i) immediately following the 
                        acquisition--
                                    ``(I) the bank holding company 
                                meets the capital and other financial 
                                standards prescribed by the Board by 
                                regulation for such a bank holding 
                                company; and
                                    ``(II) the bank is adequately 
                                capitalized (as defined in section 38 
                                of the Federal Deposit Insurance Act);
                            ``(ii) the holding company does not engage 
                        in any activities other than those of managing 
                        and controlling banks as a result of the 
                        reorganization;
                            ``(iii) the company provides 30 days prior 
                        notice to the Board and the Board does not 
                        object to such transaction during such 30-day 
                        period; and
                            ``(iv) the holding company will not acquire 
                        control of any additional bank as a result of 
                        the reorganization.''.

SEC. 118. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.

    Section 5146 of the Revised Statutes (12 U.S.C. 72) is amended in 
the 1st sentence, by striking ``two thirds'' and inserting ``a 
majority''.

SEC. 119. REPEAL OF OBSOLETE REQUIREMENTS FOR NATIONAL BANKS.

    (a) Repeal of Provisions in the Revised Statutes.--The following 
sections of the Revised Statutes are hereby repealed:
            (1) Section 5170 (12 U.S.C. 28).
            (2) Section 5203 (12 U.S.C. 87).
            (3) Section 5206 (12 U.S.C. 88).
            (4) Section 5196 (12 U.S.C. 89).
            (5) Section 5158 (12 U.S.C. 102).
            (6) Section 5159 (12 U.S.C. 101a).
            (7) Section 5172 (12 U.S.C. 104)
            (8) Section 5173 (12 U.S.C. 107).
            (9) Section 5174 (12 U.S.C. 108).
            (10) Section 5182 (12 U.S.C. 109).
            (11) Section 5183 (12 U.S.C. 110).
            (12) Section 5195 (12 U.S.C. 123).
            (13) Section 5184 (12 U.S.C. 124).
            (14) Section 5226 (12 U.S.C. 131).
            (15) Section 5227 (12 U.S.C. 132).
            (16) Section 5228 (12 U.S.C. 133).
            (17) Section 5229 (12 U.S.C. 134).
            (18) Section 5230 (12 U.S.C. 137).
            (19) Section 5231 (12 U.S.C. 138).
            (20) Section 5232 (12 U.S.C. 135).
            (21) Section 5233 (12 U.S.C. 136).
            (22) Section 5185 (12 U.S.C. 151).
            (23) Section 5186 (12 U.S.C. 152).
            (24) Section 5160 (12 U.S.C. 168).
            (25) Section 5161 (12 U.S.C. 169).
            (26) Section 5162 (12 U.S.C. 170).
            (27) Section 5163 (12 U.S.C. 171).
            (28) Section 5164 (12 U.S.C. 172).
            (29) Section 5165 (12 U.S.C. 173).
            (30) Section 5166 (12 U.S.C. 174).
            (31) Section 5167 (12 U.S.C. 175).
            (32) Section 5222 (12 U.S.C. 183).
            (33) Section 5223 (12 U.S.C. 184).
            (34) Section 5224 (12 U.S.C. 185).
            (35) Section 5225 (12 U.S.C. 186).
            (36) Section 5237 (12 U.S.C. 195).
    (b) Repeal of Other Obsolete Provisions in Banking Laws.--The 
following provisions of law are hereby repealed:
            (1) Section 26 of the Federal Deposit Insurance Act (12 
        U.S.C. 1831c).
            (2) Section 12 of the Act entitled ``An Act To define and 
        fix the standard of value, to maintain the parity of all forms 
        of money issued or coined by the United States, to refund the 
        public debt, and for other purposes.'' and approved March 14, 
        1900 (12 U.S.C. 101).
            (3) Section 3 of the Act entitled ``An Act To amend the 
        laws relating to the denominations of circulating notes by 
        national banks and to permit the issuance of notes of small 
        denominations, and for other purposes.'' and approved October 
        5, 1917 (12 U.S.C. 103).
            (4) The following sections of the Act entitled ``An Act 
        fixing the amount of United States notes, providing for a 
        redistribution of the national-bank currency, and for other 
        purposes.'' and approved June 20, 1874:
                    (A) Section 5 (12 U.S.C. 105).
                    (B) Section 3 (12 U.S.C. 121).
                    (C) Section 8 (12 U.S.C. 126).
                    (D) Section 4 (12 U.S.C. 176).
            (5) The following sections of the Act entitled ``An Act to 
        enable national-banking associations to extend their corporate 
        existence, and for other purposes.'' and approved July 12, 
        1882:
                    (A) Section 8 (12 U.S.C. 177).
                    (B) Section 9 (12 U.S.C. 178).
            (6) The Act entitled ``An Act to amend the national bank 
        act in providing for the redemption of national bank notes 
        stolen from or lost by banks of issue.'' and approved July 28, 
        1892 (12 U.S.C. 125).
            (7) The Act entitled ``An Act authorizing the conversion of 
        national gold banks.'' and approved February 14, 1880 (12 
        U.S.C. 153).
            (8) The 1st sentence of the 8th undesignated paragraph of 
        section 16 of the Federal Reserve Act (12 U.S.C. 418) is 
        amended by striking ``the Comptroller of the Currency shall 
        under the direction of the Secretary of the Treasury,'' and 
        inserting ``the Secretary of the Treasury shall''.
            (9) The 9th undesignated paragraph of section 16 of the 
        Federal Reserve Act (12 U.S.C. 419) is amended to read as 
        follows:
            ``When such notes have been prepared, the notes shall be 
        delivered to the Board of Governors of the Federal Reserve 
        System subject to the order of the Secretary of the Treasury 
        for the delivery of such notes in accordance with this Act.''.
            (10) The 10th undesignated paragraph of section 16 of the 
        Federal Reserve Act (12 U.S.C. 420) is amended--
                    (A) by striking ``Comptroller of the Currency'' and 
                inserting ``Secretary of the Treasury''; and
                    (B) by striking ``Federal Reserve Board'' and 
                inserting ``Board of Governors of the Federal Reserve 
                System''.
            (11) The 11th undesignated paragraph of section 16 of the 
        Federal Reserve Act (12 U.S.C. 421) is amended to read as 
        follows:
            ``The Secretary of the Treasury may examine the plates, 
        dies, bed pieces, and other material used in the printing of 
        Federal Reserve notes and issue regulations relating to such 
        examinations.''.
    (c) Amendments to Other Laws.--
            (1) The Act entitled ``An Act to provide for the redemption 
        of national-bank notes, Federal Reserve bank notes, and Federal 
        Reserve notes which cannot be identified as to the bank of 
        issue.'' and approved June 13, 1933, is amended--
                    (A) in the 1st section (12 U.S.C. 121a)--
                            (i) by striking ``whenever any national-
                        bank notes, Federal Reserve bank notes,'' and 
                        inserting ``whenever any Federal Reserve bank 
                        notes''; and
                            (ii) by striking ``, and the notes, other 
                        than Federal Reserve notes, so redeemed shall 
                        be forwarded to the Comptroller of the Currency 
                        for cancellation and destruction''; and
                    (B) in section 2 (12 U.S.C. 122a)--
                            (i) by striking ``National-bank notes 
                        and''; and
                            (ii) by striking ``national-bank notes 
                        and''.
            (2) The 1st section of the Act entitled ``An Act making 
        appropriations for sundry civil expenses of the Government for 
        the fiscal year ending June thirtieth, eighteen hundred and 
        seventy-six, and for other purposes.'' and approved March 3, 
        1875, is amended in the 1st paragraph which appears under the 
        heading ``national currency'' by striking ``Secretary of the 
        Treasury: Provided, That'' and all that follows through the 
        period and inserting ``Secretary of the Treasury.''.
            (3) The Act entitled ``An Act to simplify the accounts of 
        the Treasurer of the United States, and for other purposes.'' 
        and approved October 10, 1940 (12 U.S.C. 177a) is amended by 
        striking all after the enacting clause and inserting the 
        following: ``That the cost of transporting and redeeming 
        outstanding national bank notes and Federal Reserve bank notes 
        as may be presented to the Treasurer of the United States for 
        redemption shall be paid from the regular annual appropriation 
        for the Department of the Treasury.''.
            (4) Section 5234 of the Revised Statutes (12 U.S.C. 192) is 
        amended by striking ``has refused to pay its circulating notes 
        as therein mentioned, and''.
            (5) Section 5236 of the Revised Statutes (12 U.S.C. 194) is 
        amended by striking ``, after full provision has been first 
        made for refunding to the United States any deficiency in 
        redeeming the notes of such association''.
            (6) Section 5238 of the Revised Statutes (12 U.S.C. 196) is 
        amended by striking the 1st sentence.
    (d) Amendments to Outdated Dividend Provisions.--
            (1) Withdrawal of capital.--Section 5204 of the Revised 
        Statutes (12 U.S.C. 56) is amended--
                    (A) in the 2d sentence, by striking ``net profits 
                then on hand, deducting therefrom its losses and bad 
                debts'' and inserting ``undivided profits, subject to 
                other applicable provisions of law''; and
                    (B) by striking the 3d sentence.
            (2) Declaration of dividends.--Section 5199 of the Revised 
        Statutes (12 U.S.C. 60) is amended--
                    (A) in the 1st sentence, by striking ``net profits 
                of the association'' and inserting ``undivided profits 
                of the association, subject to the limitations in 
                subsection (b),'';
                    (B) by striking ``net profits'' each subsequent 
                place such term appears and inserting ``net income''; 
                and
                    (C) by striking subsection (c).
    (e) Clerical Amendments.--
            (1) The table of sections for chapter 1 of title LXII of 
        the Revised Statutes of the United States is amended--
                    (A) by inserting after the item relating to section 
                5156 the following new item:

        ``5156A. Mergers, consolidations, and other acquisitions 
                            authorized.''; and
                    (B) by striking the items relating to sections 5141 
                and 5151.
            (2) The table of sections for chapter 2 of title LXII of 
        the Revised Statutes of the United States is amended by 
        striking the item relating to each of the following sections:
                    (A) Section 5158.
                    (B) Section 5159.
                    (C) Section 5160.
                    (D) Section 5161.
                    (E) Section 5162.
                    (F) Section 5163.
                    (G) Section 5164.
                    (H) Section 5165.
                    (I) Section 5166.
                    (J) Section 5167.
                    (K) Section 5170.
                    (L) Section 5171.
                    (M) Section 5172.
                    (N) Section 5173.
                    (O) Section 5174.
                    (P) Section 5175.
                    (Q) Section 5176.
                    (R) Section 5177.
                    (S) Section 5178.
                    (T) Section 5179.
                    (U) Section 5180.
                    (V) Section 5181.
                    (W) Section 5182.
                    (X) Section 5183.
                    (Y) Section 5184.
                    (Z) Section 5185.
                    (AA) Section 5186.
                    (BB) Section 5187.
                    (CC) Section 5188.
                    (DD) Section 5189.
            (3) The table of sections for chapter 3 of title LXII of 
        the Revised Statutes of the United States is amended by 
        striking the item relating to each of the following sections:
                    (A) Section 5193.
                    (B) Section 5194.
                    (C) Section 5195.
                    (D) Section 5196.
                    (E) Section 5202.
                    (F) Section 5203.
                    (G) Section 5206.
                    (H) Section 5209.
                    (I) Section 5212.
            (3) The table of sections for chapter 4 of title LXII of 
        the Revised Statutes of the United States is amended--
                    (A) by inserting after the item relating to section 
                5239 the following new item:

        ``5239A. Regulatory authority.''; and
                    (B) by striking the items relating to the following 
                sections:
                            (i) Section 5222.
                            (ii) Section 5223.
                            (iii) Section 5224.
                            (iv) Section 5225.
                            (v) Section 5226.
                            (vi) Section 5227.
                            (vii) Section 5228.
                            (viii) Section 5229.
                            (ix) Section 5230.
                            (x) Section 5231.
                            (xi) Section 5232.
                            (xii) Section 5233.
                            (xiii) Section 5237.
                            (xiv) Section 5243.

SEC. 120. LIMITED EXEMPTION AUTHORITY.

    Section 22(h)(5)(C) of the Federal Reserve Act (12 U.S.C. 
375b(5)(C)) is amended by striking ``subparagraph (A) for member banks 
with less than $100,000,000 in deposits if the Board'' and inserting 
``subparagraph (A) for--
                            ``(i) member banks with less than 
                        $100,000,000 in deposits; and
                            ``(ii) member banks which have--
                                    ``(I) total deposits of 
                                $100,000,000 or more and less than 
                                $250,000,000; and
                                    ``(II) a CAMEL composite rating of 
                                1 or 2 under the Uniform Financial 
                                Institutions Rating System (or an 
                                equivalent rating under a comparable 
                                rating system) as of the most recent 
                                examination of such institution by the 
                                Federal Deposit Insurance Corporation 
                                or the appropriate Federal banking 
                                agency,
                        if the Board''.

                  Subtitle C--Other Regulatory Reform

SEC. 121. ELIMINATION OF DUPLICATIVE DISCLOSURES FOR HOME EQUITY LOANS.

    Section 4(a) of the Real Estate Settlement Procedures Act (12 
U.S.C. 2603(a)) is amended by adding at the end the following: ``In the 
case of a federally related mortgage loan extended under an open end 
credit plan (as defined in section 103(i) of the Truth in Lending Act), 
disclosures made under section 127A(a) of the Truth in Lending Act may 
be used in lieu of the disclosures required under this section if--
            ``(1) the disclosures made pursuant to such section 127A(a) 
        contain all of the information that is required under this 
        section; and
            ``(2) the information is disclosed in a manner that is no 
        less conspicuous than is required under this section.''.

SEC. 122. ALTERNATIVE DISPUTE RESOLUTIONS.

    (a) In General.--Each Federal banking agency shall develop and 
implement a program for using alternative means of dispute resolution 
of issues in controversy (hereafter in this section referred to as the 
``alternative dispute resolution program'') if the parties to the 
dispute, including the agency, agree to such proceeding.
    (b) Standards.--Alternative dispute resolution programs shall--
            (1) be fair to all interested parties to a dispute;
            (2) resolve disputes expeditiously; and
            (3) be less costly than traditional means of dispute 
        resolution, including litigation.
    (c) Implementation of Program.--Each Federal banking agency shall--
            (1) within 18 months of the date of the enactment of this 
        Act, establish a pilot alternative dispute resolution program 
        which is consistent with the requirements of the subchapter IV 
        of chapter 5 of title 5, United States Code;
            (2) within 24 months of such date, make a written 
        evaluation of the pilot program on the basis of subsection (b); 
        and
            (3) within 30 months of such date, implement an alternative 
        dispute resolution program throughout the agency, taking into 
        account the results of the evaluation made pursuant to 
        paragraph (2).
    (d) Independent Evaluation.--Before the end of the 30-month period 
beginning on the date of the enactment of this Act, the Administrative 
Conference of the United States shall submit to the Congress a report 
containing--
            (1) an evaluation of the pilot programs established under 
        subsection (c)(1);
            (2) the extent to which the pilot programs meet the 
        standards established under subsection (b);
            (3) the extent to which parties to disputes were offered 
        alternative means of dispute resolution and the frequency with 
        which the parties, including the agencies, accepted or declined 
        to use such means; and
            (4) any recommendations of the Conference to improve the 
        alternative dispute resolution procedures of the Federal 
        banking agencies.
    (e) Coordination With Existing Agency ADR Programs.--
            (1) Evaluation required.--Any Federal banking agency which, 
        as of the date of the enactment of this Act, maintains an 
        alternative dispute resolution program under any other 
        provision of law shall include such program in the evaluation 
        conducted under subsection (c)(2).
            (2) Multiple adr programs.--No provision of this section 
        shall be construed as precluding any Federal banking agency 
        from establishing more than 1 alternative means of dispute 
        resolution.
    (f) Definitions.--For purposes of this section--
            (1) Alternative means of dispute resolution.--The term 
        ``alternative means of dispute resolution'' has the meaning 
        given to such term in section 571 of title 5, United States 
        Code.
            (2) Federal banking agency.--The term ``Federal banking 
        agency''--
                    (A) has the meaning given to such term in section 3 
                of the Federal Deposit Insurance Act; and
                    (B) includes the National Credit Union 
                Administration.
            (3) Issues in controversy.--The term ``issues in 
        controversy'' means--
                    (A) any final agency decision involving any claim 
                against an insured depository institution or insured 
                credit union for which the agency has been appointed 
                conservator or receiver;
                    (B) any final action taken by an agency in the 
                agency's capacity as conservator or receiver for an 
                insured depository institution or insured credit union; 
                and
                    (C) any other issue for which the appropriate 
                Federal banking agency determines that alternative 
                means of dispute resolution would be appropriate.

SEC. 123. CLARIFICATION OF RESPA DISCLOSURE REQUIREMENTS.

    Section 6(a)(1)(B) of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2605(a)(1)(B)) is amended--
            (1) by striking ``(B) for each of the most recent'' and 
        inserting ``(B) at the choice of the person making a federally 
        related mortgage loan--
                            ``(i) for each of the most recent'';
            (2) by redesignating clauses (i) and (ii) as subclauses (I) 
        and (II), respectively, and moving the left margin of such 
        subclauses (as so redesignated) 2 ems to the right;
            (3) by striking ``and'' at the end of subclause (II) (as so 
        redesignated by paragraph (2) of this section) and inserting 
        ``or''; and
            (4) by inserting after clause (i) (as so designated by 
        paragraph (1) of this section) the following new clause:
                            ``(ii) a statement that the person making 
                        the loan has previously assigned, sold, or 
                        transferred the servicing of federally related 
                        mortgage loans; and''.

SEC. 124. EXEMPTION OF BUSINESS LOANS FROM RESPA REQUIREMENTS.

    The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 
et seq.) is amended by inserting after section 6 the following new 
section:

``SEC. 7. EXEMPTED TRANSACTIONS.

    ``This Act shall not apply to credit transactions involving 
extensions of credit--
            ``(1) primarily for business, commercial, or agricultural 
        purposes; or
            ``(2) to government or governmental agencies or 
        instrumentalities.''.

SEC. 125. EXPEDITED PROCEDURES FOR BANK HOLDING COMPANIES TO SEEK 
              APPROVAL TO ENGAGE IN CERTAIN ACTIVITIES.

    Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) 
is amended by adding at the end the following new subsection:
    ``(j) Notice Procedures for Nonbanking Activities.--
            ``(1) General notice procedure.--
                    ``(A) Notice requirement.--No bank holding company 
                may engage in any nonbanking activity or acquire or 
                retain ownership or control of the shares of a company 
                engaged in activities described in subsection (c)(8) 
                without providing the Board with written notice of the 
                proposed transaction or activity at least 60 days 
                before the transaction or activity is proposed to occur 
                or commence.
                    ``(B) Contents of notice.--The notice submitted to 
                the Board shall contain such information as the Board 
                shall prescribe by regulation or by specific request in 
                connection with a particular notice.
                    ``(C) Procedure for agency action.--
                            ``(i) Notice of disapproval.--Any notice 
                        filed under this subsection shall be deemed to 
                        be approved by the Board unless, before the end 
                        of the 60-day period beginning on the date the 
                        Board receives a complete notice under 
                        subparagraph (A), the Board issues an order 
                        disapproving the transaction or activity and 
                        setting forth the reasons for disapproval.
                          ``(ii) Extension of period.--The Board may 
                        extend the 60-day period referred to in clause 
                        (i) for an additional 30 days.
                    ``(D) Approval before end of period.--
                            ``(i) In general.--Any transaction or 
                        activity may commence before the expiration of 
                        any period for disapproval established under 
                        this paragraph if the Board issues a written 
                        notice of approval.
                            ``(ii) Shorter periods by regulation.--The 
                        Board may prescribe regulations which provide 
                        for no notice under this paragraph or for a 
                        shorter notice period with respect to 
                        particular activities or transactions.
                    ``(E) Extension of period.--In the case of any 
                notice to engage in, or to acquire or retain ownership 
                or control of shares of any company engaged in, any 
                activity pursuant to subsection (c)(8) that has not 
                been previously approved by order or regulation, the 
                Board may extend the notice period under this 
                subsection for an additional 90 days.
            ``(2) General standards for review.--
                    ``(A) Criteria.--In connection with a notice under 
                this subsection, the Board may consider the following 
                criteria:
                            ``(i) The managerial resources of the 
                        companies involved.
                            ``(ii) The adequacy of the companies 
                        financial resources, including capital, giving 
                        consideration to the financial resources and 
                        capital of others engaged in similar 
                        activities.
                            ``(iii) Any material adverse effect on the 
                        safety and soundness or financial condition of 
                        any insured depository institution affiliate.
                            ``(iv) Whether, performance of the activity 
                        by a bank holding company or a subsidiary of 
                        such company can reasonably be expected to 
                        produce benefits to the public, such as greater 
                        convenience, increased competition, or gains in 
                        efficiency, that outweigh possible adverse 
                        effects, such as undue concentration of 
                        resources, decreased or unfair competition, 
                        conflicts of interests, or unsound banking 
                        practices.
                    ``(B) Requirements for disapproval.--The Board 
                shall not approve any proposed transaction under this 
                subsection if the Board determines that any insured 
                depository institution subsidiary of the bank holding 
                company is engaging in any unsafe and unsound practice 
                or is in an unsafe and unsound condition.
            ``(3) Public notice relating to new activities.--
                    ``(A) Publication and opportunity for comment.--The 
                Board shall--
                            ``(i) publish in the Federal Register a 
                        notice of the receipt by the Board of a notice 
                        under paragraph (1) involving insurance or any 
                        other nonbanking activity which has not 
                        previously been determined by the Board (by 
                        regulation or order) to be closely related to 
                        banking as to be a proper incident thereto; and
                            ``(ii) provide a reasonable period for 
                        public comment.
                    ``(B) Notice of approval before commencement of 
                activity.--The Board shall issue an order with respect 
                to any such notice before the commencement of the 
                proposed insurance activity or the other new 
                activity.''.

SEC. 126. WAIVER OF RIGHT OF RESCISSION FOR CERTAIN REFINANCING 
              TRANSACTIONS.

    The Board of Governors of the Federal Reserve System, in 
consultation with the consumer advisory council to such Board, shall, 
within 6 months of the date of the enactment of this Act, submit 
recommendations to the Congress regarding whether a waiver or 
modification, at the option of a consumer, of the right of rescission 
under section 125 of the Truth in Lending Act with respect to 
transactions which constitute a refinancing or consolidation (with no 
new advances) of the principal balance then due and any accrued and 
unpaid finance charges of an existing extension of credit by a 
different creditor secured by an interest in the same property would 
benefit consumers more than existing law.

SEC. 127. SIMPLIFIED DISCLOSURE FOR EXISTING DEPOSITORS.

    (a) In General.--Section 43(b)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1831t(b)(3)) is amended to read as follows:
            ``(3) Acknowledgement of disclosure.--
                    ``(A) New depositors.--With respect to any 
                depositor who was not a depositor at the depository 
                institution before June 19, 1994, 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) Current depositors.--Receive any deposit 
                after the effective date of this paragraph for the 
                account of any depositor who was a depositor before 
                June 19, 1994, only if--
                            ``(i) the depositor has signed a written 
                        acknowledgement described in subparagraph (A); 
                        or
                            ``(ii) the institution has complied with 
                        the provisions of subparagraph (C) which are 
                        applicable as of the date of the deposit.
                    ``(C) Alternative provision of notice to current 
                depositors.--
                            ``(i) In general.--Transmit to each 
                        depositor who was a depositor before June 19, 
                        1994, and has not signed a written 
                        acknowledgement described in subparagraph (A)--
                                    ``(I) a card containing the 
                                information described in clauses (i) 
                                and (ii) of subparagraph (A), and a 
                                line for the signature of the 
                                depositor; and
                                    ``(II) accompanying materials 
                                requesting the depositor to sign the 
                                card, and return the signed card to the 
                                institution.
                            ``(ii) Manner and timing of notice.--
                                    ``(I) First notice.--Make the 
                                transmission described in clause (i) 
                                via first class mail within 90 days 
                                after June 19, 1994.
                                    ``(II) Second notice.--Make a 2d 
                                transmission described in clause (i) 
                                via first class mail not less than 30 
                                days and not more than 45 days 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)(I) which has been signed by the 
                                depositor.
                                    ``(III) Third notice.--Make a 3d 
                                transmission described in clause (i) 
                                via first class mail not less than 30 
                                days and not more than 45 days after a 
                                transmission to the depositor in 
                                accordance with subclause (II), if the 
                                institution has not, by the date of 
                                such mailing, received from the 
                                depositor a card referred to in clause 
                                (i)(I) which has been signed by the 
                                depositor.''.
    (b) Effective Date.--Section 43(b)(3) of the Federal Deposit 
Insurance Act, as amended by subsection (a), shall take effect in 
accordance with section 151(a)(2)(D) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991.

SEC. 128. DEPOSIT BROKER REGISTRATION.

    Section 29(g)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831f(g)(3)) is amended--
            (1) by inserting ``that is not well capitalized'' after 
        ``includes any insured depository institution'';
            (2) by inserting ``such'' after ``any employee of any''; 
        and
            (3) by striking ``having the same type of charter''.

SEC. 129. AGENCY OMBUDSMAN.

    (a) Establishment Required.--Not later than 180-days after the date 
of the enactment of this Act, each Federal banking agency and the 
National Credit Union Administration shall appoint an ombudsman.
    (b) Duties of Ombudsman.--The ombudsman for any agency shall--
            (1) act as a liaison between the agency and any party with 
        respect to the accuracy, consistency, or quality of any 
        examination or regulatory activity of the agency that results 
        in a material supervisory or agency determination rendered by 
        the agency, or may result in an enforcement action by the 
        agency, with respect to such party;
            (2) act as a liaison between the agency and any party with 
        respect to any problem such party may have in dealing with the 
        agency; and
            (3) assure that safeguards exist to encourage complainants 
        to come forward and preserve confidentiality.
    (c) Definitions.--For purposes of this section--
            (1) Agency.--The term ``agency'' means a Federal banking 
        agency or the National Credit Union Administration.
            (2) Federal banking agency.--The term ``Federal banking 
        agency'' has the meaning given to such term in section 3(z) of 
        the Federal Deposit Insurance Act.
            (3) Material supervisory determination.--The term 
        ``material supervisory determination''--
                    (A) means a supervisory determination relating to 
                an insured depository institution that the Federal 
                banking agency has determined to be material under 
                guidelines which the agency shall issue; and
                    (B) does not include a determination by a Federal 
                banking agency to appoint a conservator or receiver for 
                an insured depository institution or a decision to take 
                action pursuant to section 38 of the Federal Deposit 
                Insurance Act.

SEC. 130. ALTERNATIVE RULES FOR DISCLOSURES FOR RADIO ADVERTISING OF 
              CREDIT TRANSACTIONS, DEPOSIT ACCOUNTS, AND CONSUMER 
              LEASES.

    (a) Open End Credit Plans.--Section 143 of the Truth in Lending Act 
(15 U.S.C. 1663) is amended--
            (1) by striking ``No advertisement'' and inserting ``(a) In 
        General.--No advertisement''; and
            (2) by adding at the end the following new subsections:
    ``(b) Radio advertisements.--In order to provide a practical 
alternative for complying with the disclosure requirements of 
subsection (a) at the option of a creditor, an advertisement by radio 
broadcast to aid, promote, or assist, directly or indirectly, the 
extension of consumer credit under an open end credit plan shall be 
deemed to meet the requirements of subsection (a) if the advertisement, 
clearly and conspicuously--
            ``(1) states any periodic rate that may be applied under 
        the plan, expressed as an annual percentage rate;
            ``(2) states that a variable periodic rate applies under 
        the plan, if such a rate applies; and
            ``(3) includes--
                    ``(A) a referral to--
                            ``(i) a toll-free telephone number that may 
                        be used by consumers to obtain the information 
                        required under subsection (a) in accordance 
                        with subsection (c); or
                            ``(ii) an advertisement that--
                                    ``(I) appears in a publication in 
                                general circulation in the community 
                                served by the radio station (on which 
                                such advertisement is broadcast) during 
                                the period beginning 7 days before the 
                                broadcast and ending 7 days after the 
                                broadcast; and
                                    ``(II) includes the information 
                                required to be disclosed under 
                                subsection (a); and
                    ``(B) in any case to which subparagraph (A)(ii) 
                applies, the name and date of the publication.
    ``(c) Establishment of Toll-Free Telephone Number.--
            ``(1) In general.--In the case of an advertisement 
        described in subsection (b) or section 144(e) or 147(b) which 
        includes a referral to a toll-free telephone number in 
        accordance with such subsection or section, a creditor that 
        offers the credit which such advertisement aids, supports, or 
        assists shall--
                    ``(A) establish the telephone number by not later 
                than the date on which any advertisement is broadcast 
                which includes a referral to the number; and
                    ``(B) maintain the telephone number at least until 
                the end of the 7-day period beginning on the date of 
                any such broadcast.
            ``(2) Availability of information.--
                    ``(A) In general.--The creditor referred to in 
                paragraph (1) shall provide the information required 
                under subsection (a) with respect to the open end 
                credit plan for which the toll-free telephone line is 
                established to any person who calls such number in 
                response to an advertisement by radio broadcast.
                    ``(B) Form of information.--The information 
                required to be provided under subparagraph (A) may be 
                provided orally or by offering to mail a written copy 
                of such information to such person.''.
    (b) Credit Other Than Under Open End Credit Plans.--Section 144 of 
the Truth in Lending Act (15 U.S.C. 1664) is amended--
            (1) in subsection (a) by inserting ``Application 
        Generally.--'' before ``Except as provided'';
            (2) in subsection (b) by inserting ``Limitation on 
        Application.--'' before ``The provisions'';
            (3) in subsection (c) by inserting ``Disclosures Regarding 
        Finance Charges.--'' before ``If any'';
            (4) in subsection (d) by inserting ``Other Required 
        Disclosures.--'' before ``If any advertisement''; and
            (5) by adding at the end the following new subsection:
    ``(e) Radio Advertisements.--In order to provide a practical 
alternative for complying with the disclosure requirements of 
subsection (d) at the option of the creditor, an advertisement by radio 
broadcast to aid, promote, or assist, directly or indirectly, any 
consumer credit sale, loan, or other extension of credit subject to 
this title, other than an open end consumer credit plan, shall be 
deemed to meet the requirements of subsection (d) if the advertisement, 
clearly and conspicuously--
            ``(1) states the rate of the finance charge, expressed as 
        an annual percentage rate;
            ``(2) states that the rate of finance charge may be 
        increased after the date on which credit is extended, if such 
        an increase is authorized under the terms of the extension of 
        credit to which the advertisement relates; and
            ``(3) includes--
                    ``(A) a referral to--
                            ``(i) a toll-free telephone number that may 
                        be used by consumers to obtain, in accordance 
                        with section 143(c), the information required 
                        under subsection (d); or
                            ``(ii) an advertisement that--
                                    ``(I) appears in a publication in 
                                general circulation in the community 
                                served by the radio station (on which 
                                such advertisement is broadcast) during 
                                the period beginning 7 days before the 
                                broadcast and ending 7 days after the 
                                broadcast; and
                                    ``(II) includes the information 
                                required to be disclosed under 
                                subsection (d); and
                    ``(B) in any case to which subparagraph (A)(ii) 
                applies, the name and date of the publication.''.
    (c) Credit Plans Secured by Consumer's Principal Dwelling.--Section 
147 of the Truth in Lending Act (15 U.S.C. 1665b) is amended--
            (1) by redesignating subsections (b), (c), (d), (e), and 
        (f) as subsections (c), (d), (e), (f), and (g), respectively; 
        and
            (2) by inserting after subsection (a) the following:
    ``(b) Radio Advertisements.--In order to provide a practical 
alternative for complying with the disclosure requirements of 
subsection (a) at the option of a creditor, an advertisement by radio 
broadcast to aid, promote, or assist, directly or indirectly, the 
extension of consumer credit under an open end consumer credit plan 
under which extensions of credit are secured by a consumer's principal 
dwelling shall be deemed to meet the requirements of subsection (a) if 
the advertisement, clearly and conspicuously--
            ``(1) contains the information described in paragraphs (2) 
        and (3) of subsection (a); and
            ``(2) includes--
                    ``(A) a referral to--
                            ``(i) a toll-free telephone number that may 
                        be used by consumers to obtain the information 
                        required under subsection (a) in accordance 
                        with section 143(c); or
                            ``(ii) an advertisement that--
                                    ``(I) appears in a publication in 
                                general circulation in the community 
                                served by the radio station (on which 
                                such advertisement is broadcast) during 
                                the period beginning 7 days before the 
                                broadcast and ending 7 days after the 
                                broadcast; and
                                    ``(II) includes the information 
                                required to be disclosed under 
                                subsection (a); and
                    ``(B) in any case to which subparagraph (A)(ii) 
                applies, the name and date of the publication.''.
    (d) Deposits Subject to Truth in Savings.--Section 263(b) of the 
Truth in Savings Act (12 U.S.C. 4302(b)) is amended--
            (1) by striking ``Exception.--The Board may--'' and 
        inserting ``Exception.--
            ``(1) In general.--The Board may''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Radio advertisements.--Paragraphs (4), (5), and (6) 
        of subsection (a) shall not apply with respect to an 
        advertisement, announcement, or solicitation (which is 
        otherwise subject to such subsection) by radio broadcast.''.
    (e) Consumer Leases.--Section 184 of the Truth in Leasing Act is 
amended--
            (1) by redesignating subsection (b) as subsection (d); and
            (2) by inserting after subsection (a) the following new 
        subsections:
    ``(b) Radio Advertisements.--In order to provide a practical 
alternative for complying with the disclosure requirements of 
subsection (a) at the option of a lessor, an advertisement by radio 
broadcast to aid, promote, or assist, directly or indirectly, any 
consumer lease shall be deemed to meet the requirements of subsection 
(a) if the advertisement, clearly and conspicuously--
            ``(1) states the information described in paragraphs (1) 
        and (2) of subsection (a);
            ``(2) states the total amount of all payments required 
        under the lease; and
            ``(3) includes--
                    ``(A) a referral to--
                            ``(i) a toll-free telephone number that may 
                        be used by consumers to obtain the information 
                        required under subsection (a) in accordance 
                        with subsection (c); or
                            ``(ii) an advertisement that--
                                    ``(I) appears in a publication in 
                                general circulation in the community 
                                served by the radio station (on which 
                                such advertisement is broadcast) during 
                                the period beginning 7 days before the 
                                broadcast and ending 7 days after the 
                                broadcast; and
                                    ``(II) includes the information 
                                required to be disclosed under 
                                subsection (a); and
                    ``(B) in any case to which subparagraph (A)(ii) 
                applies, the name and date of the publication.
    ``(c) Establishment of Toll-Free Telephone Number.--
            ``(1) In general.--In the case of an advertisement 
        described in subsection (b) which includes a referral to a 
        toll-free telephone number in accordance with such subsection, 
        a lessor who offers the consumer lease which such advertisement 
        aids, supports, or assists shall--
                    ``(A) establish the telephone number by not later 
                than the date on which an advertisement is broadcast 
                which includes a referral to the number; and
                    ``(B) maintain the telephone number at least until 
                the end of the 7-day period beginning on the date of 
                any such broadcast.
            ``(2) Availability of information.--
                    ``(A) In general.--The lessor referred to in 
                paragraph (1) shall provide the information required 
                under subsection (a) with respect to the consumer lease 
                for which the toll-free telephone line is established 
                to any person who calls such number in response to an 
                advertisement by radio broadcast.
                    ``(B) Form of information.--The information 
                required to be provided under subparagraph (A) may be 
                provided orally or by offering to mail a written copy 
                of such information to such person.''.

   Subtitle D--Reports, Studies, Streamlined Regulatory Requirements

SEC. 131. STUDY ON CAPITAL STANDARDS AND THEIR IMPACT ON THE ECONOMY.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Federal banking agencies, shall conduct a study of the effect 
that the implementation of risk-based capital standards, including the 
Basle international capital standards, is having on--
            (1) the safety and soundness of insured depository 
        institutions;
            (2) the availability of credit, particularly to individuals 
        and small businesses; and
            (3) economic growth.
    (b) Report.--
            (1) In general.--Before the end of the 1-year period 
        beginning on the date of the enactment of this Act, the 
        Secretary of the Treasury shall submit a report to the Congress 
        on the findings and conclusions of the Secretary with respect 
        to the study conducted under subsection (a).
            (2) Recommendations.--The report shall contain any 
        recommendations with respect to capital standards that the 
        Secretary of the Treasury may determine to be appropriate.
    (c) Definitions.--For purposes of this section, the terms ``Federal 
banking agency'' and ``insured depository institution'' have the 
meanings given to such terms in section 3 of the Federal Deposit 
Insurance Act.

SEC. 132. STUDY OF THE CONSUMER CREDIT SYSTEM.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Board of Governors of the Federal Reserve System, the 
Administrator of the Small Business Administration, the Secretary of 
Housing and Urban Development, and the other Federal banking agencies, 
shall conduct a study of the manner in which and the extent to which 
credit is made available for consumers and small businesses in order to 
identify procedures which have the effect of--
            (1) reducing the amount of credit available for such 
        purposes or the number of persons eligible for such credit; and
            (2) increasing the level of consumer inconvenience, cost, 
        and time delays in connection with the extension of consumer 
        and small business credit without any corresponding benefit 
        with respect to the protection of consumers or small businesses 
        or the safety and soundness of insured depository institutions.
    (b) Report.--
            (1) In general.--Before the end of the 1-year period 
        beginning on the date of the enactment of this Act, the 
        Secretary of the Treasury shall submit report to the Congress 
        on the findings and conclusions of the Secretary with respect 
        to the study conducted under subsection (a).
            (2) Recommendations.--The report shall contain any 
        recommendations for administrative action that the Secretary of 
        the Treasury may determine to be appropriate.
    (c) Definitions.--For purposes of this section, the terms ``Federal 
banking agency'' and ``insured depository institution'' have the 
meanings given to such terms in section 3 of the Federal Deposit 
Insurance Act.

SEC. 133. STUDIES ON THE IMPACT OF THE PAYMENT OF INTEREST ON RESERVES.

    (a) Federal Reserve Study.--Not later than 180 days after the date 
of enactment of this Act, the Board of Governors of the Federal Reserve 
System, in consultation with the Federal Deposit Insurance Corporation 
and the National Credit Union Administration, shall conduct a study and 
report to Congress on--
            (1) the necessity, for monetary policy purposes, of 
        continuing to require insured depository institutions to 
        maintain sterile reserves;
            (2) the appropriateness of paying a market rate of interest 
        to insured depository institutions on sterile reserves or, in 
        the alternative, providing for payment of such interest into 
        the appropriate deposit insurance fund;
            (3) the monetary impact that the failure to pay interest on 
        sterile reserves has had on insured depository institutions, 
        including an estimate of the total dollar amount of interest 
        and the potential income lost by insured depository 
        institutions; and
            (4) the impact that the failure to pay interest on sterile 
        reserves has had on the ability of the banking industry to 
        compete with nonbanking providers of financial services and 
        with foreign banks.
    (b) Budgetary Impact Study.--Not later than 180 days after the date 
of enactment of this Act, the Director of the Office of Management and 
Budget and the Director of the Congressional Budget Office, in 
consultation with the Committees on the Budget of the Senate and the 
House of Representatives, shall each conduct a study and report to the 
Congress on the budgetary impact of--
            (1) paying a market rate of interest to insured depository 
        institutions on sterile reserves; and
            (2) paying such interest into the respective deposit 
        insurance funds.
    (c) Insured Depository Institution Defined.--For purposes of this 
section, the term ``insured depository institution''--
            (1) has the meaning given to such term in section 3(c) of 
        the Federal Deposit Insurance Act; and
            (2) includes an insured credit union (as defined in section 
        101 of the Federal Credit Union Act).

SEC. 134. STREAMLINING OF REGULATORY REQUIREMENTS.

    (a) Review of Regulations; Regulatory Uniformity.--During the 2-
year period beginning on the date of the enactment of this Act, each 
Federal banking agency shall, consistent with principles of safety and 
soundness and the public interest--
            (1) conduct a review of the regulations and written 
        policies of that agency to--
                    (A) streamline those regulations and policies in 
                order to improve efficiency, reduce unnecessary costs, 
                and eliminate unwarranted constraints on credit 
                availability;
                    (B) remove inconsistencies and outmoded and 
                duplicative requirements; and
                    (C) with respect to regulations prescribed pursuant 
                to section 18(o) of the Federal Deposit Insurance Act, 
                consider the impact that such standards have on the 
                availability of credit for small business, residential, 
                and agricultural purposes, and on low- and moderate-
                income communities;
            (2) work jointly with the other Federal banking agencies to 
        make uniform all regulations and guidelines implementing common 
        statutory or supervisory policies; and
            (3) review what information is collected under the fair 
        housing data system, from which institutions the information is 
        collected, how the information collected is used, and how that 
        information compares with information collected under the Home 
        Mortgage Disclosure Act of 1975.
    (b) Review of Disclosures.--The Board of Governors of the Federal 
Reserve System, in consultation with the consumer advisory council to 
such Board, shall--
            (1) review the regulations and written policies of the 
        Board with respect to disclosures pursuant to the Truth in 
        Lending Act with regard to variable-rate mortgages in order to 
        simplify the disclosures and make the disclosures more 
        meaningful for consumers; and
            (2) implement any regulatory changes, if appropriate, 
        consistent with applicable law.
    (c)  Report to Congress.--The Federal banking agencies shall submit 
a joint report to the Congress annually for 3 years following the date 
of the enactment of this Act detailing the progress of the agencies in 
carrying out the requirements of subsection (a).

SEC. 135. CALL REPORT SIMPLIFICATION.

    (a) Modernization of Call Report Filing and Disclosure System.--In 
order to reduce the administrative requirements pertaining to bank 
reports of condition, savings association financial reports, and bank 
holding company consolidated financial statements, and to improve the 
timeliness of such reports and statements, the Federal banking agencies 
shall--
            (1) work jointly to develop a system under which--
                    (A) insured depository institutions and their 
                affiliates may file such reports and statements 
                electronically; and
                    (B) the Federal banking agencies may make such 
                reports and statements available to the public 
                electronically; and
            (2) not later than 1 year after the date of the enactment 
        of this Act, submit a report to the Congress containing 
        recommendations for legislation that would enhance efficiency 
        for filers and users of such reports and statements.
    (b) Uniform Reports and Simplification of Instructions.--The 
Federal banking agencies shall, consistent with the principles of 
safety and soundness, work jointly to--
            (1) adopt a single form for the filing of core information 
        required to be submitted under Federal law to all such agencies 
        in the reports and statements referred to in subsection (a);
            (2) simplify instructions accompanying such reports and 
        statements; and
            (3) provide an index to the instructions that is adequate 
        to meet the needs of both filers and users.
    (c) Review of Call Report Schedule.--Each Federal banking agency 
shall--
            (1) review the information required by schedules 
        supplementing the core information referred to in subsection 
        (b); and
            (2) eliminate requirements that are not warranted for 
        reasons of safety and soundness or other public purposes.

SEC. 136. ADMINISTRATIVE CONSIDERATION OF BURDEN WITH NEW REGULATIONS.

    (a) In General.--In determining the effective date and 
administrative compliance requirements for new regulations that impose 
additional reporting, disclosure, or other requirements on insured 
depository institutions, each Federal banking agency (as defined in 
section 3 of the Federal Deposit Insurance Act) shall consider, 
consistent with the principles of safety and soundness and the public 
interest--
            (1) any administrative burdens that such regulations would 
        place on depository institutions, including small depository 
        institutions, and customers of depository institutions; and
            (2) the benefits of such regulations.
    (b) Adequate Transition Period for New Regulations.--
            (1) In general.--New regulations and amendments to 
        regulations prescribed by a Federal banking agency which impose 
        additional reporting, disclosures, or other new requirements on 
        insured depository institutions shall take effect on the 1st 
        day of the calendar quarter which begins at or after the end of 
        the 90-day period beginning on the date the regulations are 
        published in final form unless--
                    (A) the agency makes a finding that--
                            (i) an emergency exists which requires the 
                        regulation to take effect before the 1st day of 
                        such calendar quarter; or
                            (ii) a delay would have a substantial 
                        impact upon the safety and soundness of insured 
                        depository institutions;
                    (B) the regulation is issued by the Board of 
                Governors of the Federal Reserve System in connection 
                with the implementation of monetary policy; or
                    (C) the regulation is required to take effect on a 
                date other than the date determined under this 
                paragraph pursuant to any other Act of Congress.
            (2) Early compliance.--Any person who is subject to a 
        regulation described in paragraph (1) may comply with the 
        regulation before the effective date of the regulation.

SEC. 137. ELIMINATION OF DUPLICATIVE FILINGS.

    The Federal banking agencies (as defined in section 3(z) of the 
Federal Deposit Insurance Act) shall work jointly--
            (1) to eliminate, to the extent practicable, duplicative or 
        otherwise unnecessary requests for information in connection 
        with applications or notices to the agencies; and
            (2) to harmonize, to the extent practicable, any 
        inconsistent publication and public notice requirements.

SEC. 138. RECOURSE AGREEMENTS.

    The Federal banking agencies (as defined in section 3(z) of the 
Federal Deposit Insurance Act) shall jointly--
            (1) review the manner in which loans sold with recourse by 
        insured depository institutions are treated under capital 
        standards and other accounting principles applicable with 
        respect to such insured depository institutions; and
            (2) revise any such standard or principle in accordance 
        with the findings and conclusions of the agencies pursuant to 
        such review before the end of the 1-year period beginning on 
        the date of the enactment of this Act, except the revision may 
        not be less stringent than generally accepted accounting 
        principles.

SEC. 139. ANTITRUST REPORTS IN CONNECTION WITH MERGER TRANSACTIONS.

    (a) Banking Agency Reports.--Section 18(c)(4) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(c)(4)) is amended by adding at 
the end the following new sentence: ``Notwithstanding the preceding 
sentence, a banking agency shall not be required to file a report 
requested by the responsible agency under this paragraph if the other 
banking agency advises the responsible agency by the applicable date 
under the preceding sentence that the report is not necessary because 
none of the effects described in paragraph (5) is likely to occur as a 
result of the transaction.''.
    (b) Limitation on Delay of Consummation of Transaction.--The last 
sentence of section 18(c)(6) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(c)(6)) is amended by inserting before the period at the end 
the following :``, unless the agency is advised by the other 2 banking 
agencies before such date that the reports required under paragraph (4) 
on the anticompetitive effects of the transaction are not necessary 
because none of the effects described in paragraph (5) is likely to 
occur as a result of the transaction''.

SEC. 140. BANKERS' BANKS.

    (a) Ownership by Depository Institution Holding Companies.--
            (1) Provision relating to national bank investments.--The 
        5th proviso of the 7th undesignated paragraph of section 5136 
        of the Revised Statutes of the United States (12 U.S.C. 24) is 
        amended by inserting ``or by depository institution holding 
        companies (as defined in section 3(w) of the Federal Deposit 
        Insurance Act)'' after ``is owned exclusively (except to the 
        extent directors' qualifying shares are required by law) by 
        depository institutions''.
            (2) Provision relating to national bank charters.--Section 
        5169(b)(1) of the Revised Statutes of the United States (12 
        U.S.C. 27(b)(1)) is amended by inserting ``or by depository 
        institution holding companies (as defined in section 3(w) of 
        the Federal Deposit Insurance Act)'' after ``is owned 
        exclusively (except to the extent directors' qualifying shares 
        are required by law) by other depository institutions''.
    (b) Ownership by Savings Associations.--Section 5(c)(4) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding at the end 
the following new subparagraph:
                    ``(E) Bankers' banks.--A Federal savings 
                association may purchase, for the association's own 
                account, shares of stock of a bankers' bank or holding 
                company described in the 5th proviso of the 7th 
                undesignated paragraph of section 5136 of the Revised 
                Statutes of the United States or section 5169(b) of 
                such Revised Statutes on the same terms and conditions 
                a national bank may purchase such shares.''.
    (c) Technical and Conforming Amendments.--
            (1) Bank holding company act.--Section 3(e) of the Bank 
        Holding Company Act of 1956 (12 U.S.C. 1842(e)) is amended by 
        striking the second sentence.
            (2) Depository institution management interlocks act 
        amendment.--Section 202(3)(D) of the Depository Institution 
        Management Interlocks Act (12 U.S.C. 3201(3)(D)) is amended by 
        striking ``the voting securities'' the 1st place such term 
        appears and all that follows through ``the surplus of such 
        other bank; or'' and inserting ``which is a bankers' bank 
        described in the 5th proviso of the 7th undesignated paragraph 
        of section 5136 of the Revised Statutes of the United States; 
        or''.
    (d) Services.--
            (1) Provision relating to national bank investments.--The 
        5th proviso of the 7th undesignated paragraph of section 5136 
        of the Revised Statutes of the United States (12 U.S.C. 24) is 
        amended by striking ``engaged exclusively in providing services 
        for other depository institutions and their officers, directors 
        and employees'' and inserting ``engaged exclusively in 
        providing services to or for other depository institutions and 
        their officers, directors and employees and providing 
        correspondent banking services at the request of other 
        depository institutions (any such bank or company is commonly 
        referred to as a `bankers' bank')''.
            (2) Provision relating to national bank charters.--Section 
        5169(b)(1) of the Revised Statutes of the United States (12 
        U.S.C. 27(b)(1)) is amended by striking ``engage exclusively in 
        providing services for other depository institutions and their 
        officers, directors and employees'' and inserting ``engage 
        exclusively in providing services to or for other depository 
        institutions and their officers, directors and employees and 
        providing correspondent banking services at the request of 
        other depository institutions (any such association is commonly 
        referred to as a `bankers' bank')''.

SEC. 141. DUE PROCESS PROTECTIONS RELATING TO ATTACHMENT OF ASSETS.

    Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is 
amended--
            (1) by striking subsection (i)(4)(B) and inserting the 
        following new subparagraph:
                    ``(B) Standard.--
                            ``(i) Showing.--Rule 65 of the Federal 
                        Rules of Civil Procedure shall apply with 
                        respect to any proceeding under subparagraph 
                        (A) without regard to the requirement of such 
                        rule that the applicant show that the injury, 
                        loss, or damage is irreparable and immediate.
                            ``(ii) State proceeding.--If, in the case 
                        of any proceeding in a State court, the court 
                        determines that rules of civil procedure 
                        available under the laws of such State provide 
                        substantially similar protections to such 
                        party's right to due process as Rule 65 (as 
                        modified with respect to such proceeding by 
                        clause (i)), the relief sought under 
                        subparagraph (A) may be requested under the 
                        laws of such State.''; and
            (2) in subsection (b), by adding the following new 
        paragraph:
            ``(9) Standard for certain orders.--No authority under this 
        subsection or subsection (c) to prohibit any institution-
        affiliated party from withdrawing, transferring, removing, 
        dissipating, or disposing of any funds, assets, or other 
        property may be exercised unless the agency meets the standards 
        of Rule 65 of the Federal Rules of Civil Procedure without 
        regard to the requirement of such rule that the applicant show 
        that the injury, loss, or damage is irreparable and 
        immediate.''.

SEC. 142. TIME LIMIT ON AGENCY CONSIDERATION OF COMPLETED APPLICATIONS.

    (a) In General.--Each Federal banking agency (as defined in section 
3(z) of the Federal Deposit Insurance Act) shall take final action on 
any application to the agency before the end of the 1-year period 
beginning on the date a completed application is received by the 
agency.
    (b) Waiver by Applicant Authorized.--Any person submitting an 
application to a Federal banking agency may waive the applicability of 
subsection (a) with respect to such application at any time.

SEC. 143. TIMELY COMPLETION OF CRA REVIEW.

    The comprehensive regulatory review of the Community Reinvestment 
Act of 1977 that, as of the date of the enactment of this Act, is being 
conducted by the Federal banking agencies, shall be completed before 
the end of the 6-month period beginning on such date of enactment.

SEC. 144. REVISIONS OF STANDARDS.

    Section 305(b)(1) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) ensure that such revisions take into account 
                the size and activities of the institutions and do not 
                cause undue reporting burdens.''.

SEC. 145. FEASIBILITY STUDY OF DATA BANK.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Financial Institutions Examination Council 
shall study the feasibility, including the costs and benefits to 
insured depository institutions, of establishing and maintaining a data 
bank for reports submitted by any depository institution to a Federal 
banking agency and report the results of such study to the Congress.
    (b) Additional factors.--The study under subsection (a) shall 
consider the feasibility of--
            (1) permitting depository institutions to file reports 
        directly with the data bank; and
            (2) permitting Federal banking agencies, State bank 
        supervisors, and the public to obtain access to any appropriate 
        report on file with the data bank which such agency or 
        supervisor or the public is otherwise authorized to receive.

         TITLE II--COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

SEC. 201. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the ``Community 
Development Banking and Financial Institutions Act of 1993''.
    (b) Table of Contents.--

         TITLE II--COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

Sec. 201. Short title; table of contents.
Sec. 202. Findings and purpose.
Sec. 203. Definitions.
Sec. 204. Establishment of National Fund for Community Development 
                            Banking.
Sec. 205. Applications for assistance.
Sec. 206. Community development partnerships.
Sec. 207. Selection of institutions.
Sec. 208. Assistance provided by the Fund.
Sec. 209. Capitalization assistance to enhance liquidity.
Sec. 210. Encouragement of private entities.
Sec. 211. Clearinghouse function.
Sec. 212. Training assistance for organizing and operating community 
                            development financial institutions.
Sec. 213. Recordkeeping, reports, and audits.
Sec. 214. Investment of receipts and proceeds.
Sec. 215. Enforcement provisions.
Sec. 216. Authorization of appropriations.
Sec. 217. Conforming amendment.
Sec. 218. Appointment of Community Enterprise Assessment Credit Board.
Sec. 219. Community development credit union assistance.
Sec. 220. Insured community development financial institution access to 
                            Federal home loan bank advances.
Sec. 221. Community investment program incentives.
Sec. 222. 30 percent lending cap increased.

SEC. 202. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) many of the Nation's urban and rural communities and 
        Indian reservations face critical social and economic problems 
        arising in part from the lack of economic growth, people living 
        in poverty, and the lack of employment and other opportunities;
            (2) the restoration and maintenance of the economies of 
        these communities will require coordinated development 
        strategies, intensive supportive services, and increased access 
        to capital and credit for development activities, including 
        investment in businesses, housing, commercial real estate, 
        human development, and other activities that promote the long-
        term economic and social viability of the community;
            (3) in many urban and rural communities, low- and moderate-
        income neighborhoods, and Indian reservations, there is a 
        shortage of capital and credit for business and affordable 
        housing;
            (4) access to capital and credit is essential to unleash 
        the untapped entrepreneurial energy of America's poorest 
        communities and to empower individuals and communities to 
        become self-sufficient; and
            (5) community development financial institutions have 
        proven their ability to identify and respond to community needs 
        for capital, credit, and development services in the absence 
        of, or as a complement to, services provided by other lenders.
    (b) Purposes.--The purposes of this title are as follows:
            (1) To create a Community Development Banking and Financial 
        Institutions Fund that will support a program for making 
        investments in and providing assistance to community 
        development financial institutions, including enhancing the 
        liquidity of community development financial institutions.
            (2) To enable the Community Development Banking and 
        Financial Institutions Fund to--
                    (A) provide financial and technical assistance, 
                including training, to community development financial 
                institutions;
                    (B) serve as a national information clearinghouse; 
                and
                    (C) be an institutional voice for community 
                development.
            (3) To provide for the establishment of, or qualification 
        of existing financial institutions as, community development 
        financial institutions that, with the support of the Community 
        Development Banking and Financial Institutions Fund, will 
        provide capital, credit, and development services to targeted 
        investment areas or populations, and will promote economic 
        revitalization and community development.

SEC. 203. DEFINITIONS.

    For purposes of this title--
            (1) Affiliate.--The term `affiliate' has the meaning given 
        to such term in section 2(k) of the Bank Holding Company Act of 
        1956.
            (2) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the meaning given to 
        such term in section 3(q) of the Federal Deposit Insurance Act.
            (3) Community development financial institution.--
                    (A) In general.--The term ``community development 
                financial institution'' means any bank, savings 
                association, depository institution holding company 
                (subject to section 205(d)), credit union, 
                microenterprise loan fund, community development 
                corporation, community development revolving loan fund, 
                minority-owned or other insured depository institution, 
                or nondepository organization that--
                            (i) has as the institution's primary 
                        mission the promotion of community development 
                        through the provision of capital, credit, or 
                        development services, directly, through an 
                        affiliate, or through a community development 
                        partner, in the institution's investment areas 
                        or to targeted populations; and
                            (ii) encourages, through representation on 
                        the institution's governing board or otherwise, 
                        the input of residents in the investment areas 
                        or the targeted populations.
                    (B) Government agencies excluded.--The term 
                ``community development financial institution'' does 
                not include any agency or instrumentality of the United 
                States or any agency or instrumentality of any State or 
                of any political subdivision of any State.
            (4) Community development partner.--The term ``community 
        development partner'' means a person (other than an individual) 
        that provides loans, equity investments, or development 
        services, including a depository institution holding company, 
        an insured depository institution, an insured credit union, a 
        nonprofit organization, a State or local government agency, and 
        an investment company authorized to operate pursuant to the 
        Small Business Investment Act of 1958.
            (5) Community development partnership.--The term 
        ``community development partnership'' means an agreement 
        between a community development financial institution and a 
        community development partner to provide development services 
        and loans or equity investments to an investment area or 
        targeted population.
            (6) Depository institution holding company.--The term 
        ``depository institution holding company'' has the meaning 
        given to such term in section 3(w) of the Federal Deposit 
        Insurance Act.
            (7) Development services.--The term ``development 
        services'' means activities conducted by a community 
        development financial institution or community development 
        partner that promote community development by developing, 
        supporting, and strengthening the lending, investment, and 
        capacity-building activities undertaken by institutions, 
        including--
                    (A) business planning services;
                    (B) financial and credit counseling services;
                    (C) marketing and management assistance; and
                    (D) administrative activities associated with 
                lending or investment.
            (8) Indian reservation.--The term ``Indian reservation'' 
        includes public domain Indian allotments, former Indian 
        reservations in the State of Oklahoma, land held by 
        incorporated Native groups, regional corporations and village 
        corporations (as defined in or established pursuant to the 
        Alaska Native Claims Settlement Act), and dependent Indian 
        communities within the borders of the United States, whether 
        within the original or subsequently acquired territory of the 
        United States and whether within or without the borders of a 
        State.
            (9) Indian tribe.--The term ``Indian tribe'' means any 
        Indian tribe, band, pueblo, nation, or other organized group or 
        community, including any Alaska Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act, which is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.
            (10) Insured community development financial institution.--
        The term ``insured community development financial 
        institution'' means any community development financial 
        institution that is an insured depository institution or an 
        insured credit union.
            (11) Insured credit union.--The term ``insured credit 
        union'' has the meaning given to such term in section 101(7) of 
        the Federal Credit Union Act.
            (12) Insured depository institution.--The term ``insured 
        depository institution'' has the meaning given to such term in 
        section 3(c) of the Federal Deposit Insurance Act.
            (13) Investment area.--The term ``investment area'' means 
        an identifiable community, including an Indian reservation, or 
        identifiable communities that--
                    (A) meet objective criteria of distress, including 
                the number of low-income families, the extent of 
                poverty, the extent of unemployment, the extend of 
                unmet credit needs, the degree of availability of basic 
                financial services, the degree of limited access to 
                capital and credit provided by existing financial 
                institutions, and other factors that the Fund 
                determines to be appropriate; or
                    (B) are located in an empowerment zone or 
                enterprise community designated under section 1391 of 
                the Internal Revenue Code of 1986.
            (14) Qualified community development financial 
        institution.--The term ``qualified community development 
        financial institution'' means a community development financial 
        institution that meets the requirements of paragraphs (2) 
        through (8) of section 205(b).
            (15) State.--The term ``State'' has the meaning given to 
        such term in section 3 of the Federal Deposit Insurance Act.
            (16) Subsidiary.--The term ``subsidiary'' has the meaning 
        given to such term in section 3 of the Federal Deposit 
        Insurance Act, except that a community development institution 
        that is a corporation shall not be considered to be a 
        subsidiary of any insured depository institution or bank 
        holding company that controls less than 25 percent of the 
        voting shares of the corporation.
            (17) Targeted population.--The term ``targeted population'' 
        means an identifiable group or identifiable groups of low-
        income or disadvantaged persons that are underserved by 
        existing financial institutions, including an Indian tribe.

SEC. 204. ESTABLISHMENT OF NATIONAL FUND FOR COMMUNITY DEVELOPMENT 
              BANKING.

    (a) Establishment.--
            (1) In general.--There is hereby established a corporation 
        to be known as the Community Development Banking and Financial 
        Institutions Fund (hereafter in this title referred to as the 
        ``Fund'') that shall have the powers and responsibilities 
        specified by this Act.
            (2) Succession.--The Fund shall have succession until 
        dissolved.
            (3) Reservation of power of the congress.--The charter of 
        the Fund may be revised, amended, or modified by Congress at 
        any time.
            (4) Offices.--The offices of the Fund shall be in 
        Washington, D.C.
    (b) Board of Directors.--
            (1) In general.--The powers and management of the Fund 
        shall be vested in a Board of Directors (hereafter referred to 
        in this title as the ``Board''), which shall have 15 members.
            (2) Members.--The members of the Board shall consist of the 
        following:
                    (A) The Secretary of Agriculture.
                    (B) The Secretary of Commerce.
                    (C) The Secretary of Housing and Urban Development.
                    (D) The Secretary of the Interior.
                    (E) The Secretary of the Treasury.
                    (F) The Administrator of the Small Business 
                Administration.
                    (G) 9 private citizens, appointed by the President, 
                who shall be selected, to the maximum extent 
                practicable, to provide for national geographic 
                representation and racial, ethnic, and gender 
                diversity, and shall consist of the following 
                individuals:
                            (i) 2 individuals who are officers of 
                        existing community development financial 
                        institutions.
                            (ii) 2 individuals who are officers of 
                        insured depository institutions (as such term 
                        is defined in section 3 of the Federal Deposit 
                        Insurance Act).
                            (iii) 2 individuals who are officers of 
                        national consumer or public interest 
                        organizations.
                            (iv) 2 individuals who have expertise in 
                        community development.
                            (v) 1 individual who has personal 
                        experience and specialized expertise in the 
                        unique lending and community development issues 
                        confronted by Indian tribes on Indian 
                        reservations.
            (3) Chairperson.--The President shall appoint from among 
        the members of the Board specified in paragraph (2)(G) a 
        chairperson of the Board, who shall serve at the pleasure of 
        the President for a term of 2 years.
            (4) Vice-chairperson.--The President shall appoint from 
        among the members specified in paragraph (2) a vice-chairperson 
        who will serve as chairperson in the absence, disability, or 
        recusal of the chairperson. The vice-chairperson shall serve at 
        the pleasure of the President for a term of 2 years.
            (5) Terms of appointed members.--
                    (A) In general.--Each member appointed pursuant to 
                paragraph (2)(G) shall serve at the pleasure of the 
                President for a term of 4 years, except as provided in 
                subparagraph (C).
                    (B) Vacancies.--Any member appointed to fill a 
                vacancy occurring before the expiration of the term for 
                which the previous member was appointed shall be 
                appointed for the remainder of such term. Appointed 
                members may continue to serve following the expiration 
                of their terms until a successor is appointed and 
                qualified.
                    (C) Terms.--The terms of the initial appointed 
                members shall be for 4 years and shall begin on the 
                date each member is appointed, except that 2 of the 
                members initially appointed pursuant to paragraph 
                (2)(G) shall be designated to serve at the pleasure of 
                the President for 5 years.
            (6) Acting officials.--In the event of a vacancy or absence 
        of the individual in any of the offices described in 
        subparagraphs (A) through (F) of paragraph (2), the official 
        acting in that office shall be a member of the Board.
            (7) Authority to delegate.--Each member of the Board 
        specified in subparagraphs (A) through (F) of paragraph (2) may 
        designate another official who has been appointed by the 
        President with the advice and consent of the Senate within the 
        same agency to serve as a member in his or her stead.
            (8) Compensation.--
                    (A) Government officers or employees.--Members of 
                the Board who are otherwise officers or employees of 
                the United States shall serve without additional 
                compensation for their duties as members, but shall be 
                reimbursed by the Fund for travel, per diem, and other 
                necessary expenses incurred in the performance of their 
                duties, in accordance with sections 5702 and 5703 of 
                title 5, United States Code.
                    (B) Appointed members.--The appointed members of 
                the Board shall be entitled to receive compensation at 
                the daily equivalent of the rate for a position under 
                Level IV of the Executive Schedule under section 5315 
                of title 5, United States Code, and shall be reimbursed 
                by the Fund for travel, per diem, and other necessary 
                expenses incurred in the performance of their duties, 
                in accordance with sections 5702 and 5703 of title 5, 
                United States Code.
            (9) Meetings.--The Board shall hold meetings at least 
        quarterly. Special meetings of the Board may be called by the 
        Chairperson or on the written request of 3 members of the 
        Board. A majority of the members of the Board in office shall 
        constitute a quorum.
    (c) Officers and Employees.--
            (1) Chief executive officer.--The Board shall appoint a 
        chief executive officer who shall be responsible for the 
        management of the Fund and such other duties deemed appropriate 
        by the Board.
            (2) Chief financial officer.--The Board shall appoint a 
        chief financial officer who shall oversee all of the financial 
        management activities of the Fund.
            (3) Inspector general.--The Board shall also appoint an 
        inspector general.
            (4) Other officers and employees.--The Board may appoint 
        such other officers and employees of the Fund as the Board 
        determines to be necessary or appropriate.
            (5) Appointment provision and rates of pay.--The chief 
        executive officer, chief financial officer, and up to 3 other 
        officers of the Fund may be--
                    (A) appointed without regard to the provisions of 
                title 5 of the United States Code, governing 
                appointments in the Federal service; and
                    (B) subject to paragraph (6), compensated without 
                regard to chapter 51 and subchapter III of chapter 53 
                of title 5 of the United States Code,
            (6) Maximum rates of pay.--The rate of pay for the chief 
        executive officer shall not exceed the rate for a position 
        under Level II of the Executive Schedule under section 5313 of 
        title 5 of the United States Code and the rate of pay for the 
        remaining 4 officers shall not exceed the rate for a position 
        under Level IV of the Executive Schedule under section 5315 of 
        title 5 of the United States Code.
    (d) General Powers.--In carrying out the Fund's powers and duties, 
the Fund--
            (1) shall have all necessary and proper powers to carry out 
        the Fund's authority under this title;
            (2) may adopt, alter, and use a corporate seal, which shall 
        be judicially noticed;
            (3) may sue and be sued in the Fund's corporate name and 
        complain and defend in any court of competent jurisdiction;
            (4) may adopt, amend, and repeal bylaws and regulations 
        governing the manner in which the Fund's business may be 
        conducted and shall have power to make such rules and 
        regulations as may be necessary or appropriate to implement the 
        provisions of this title;
            (5) may enter into and perform such agreements, contracts, 
        and transactions as may be deemed necessary or appropriate to 
        the conduct of activities authorized under this title;
            (6) may determine the character of and necessity for its 
        expenditures and the manner in which they shall be incurred, 
        allowed, and paid;
            (7) may utilize or employ the services of personnel of any 
        agency or instrumentality of the United States with the consent 
        of the agency or instrumentality concerned on a reimbursable or 
        nonreimbursable basis; and
            (8) may execute all instruments necessary or appropriate in 
        the exercise of any of the Fund's functions under this title 
        and may delegate to the members of the Board, to the chief 
        executive officer, or the officers of the Fund such of the 
        Fund's powers and responsibilities as it deems necessary or 
        appropriate for the administration of the Fund.
    (e) Wholly-Owned Government Corporation.--
            (1) In general.--The Fund shall be a wholly-owned 
        Government corporation in the executive branch and shall be 
        treated in all respects as an agency of the United States, 
        except to the extent this title provides otherwise.
            (2) Technical and conforming amendment.--Section 9101(3) of 
        title 31, United States Code, is amended--
                    (A) by redesignating paragraphs (B) through (M) as 
                paragraphs (C) through (N), respectively; and
                    (B) by inserting after paragraph (A) the following:
                    ``(B) the Community Development Banking and 
                Financial Institutions Fund.''.
            (3) Section 9107(b) of title 31, United States Code, shall 
        not apply to deposits of the Fund made pursuant to section 207.
    (f) Limitation of Fund and Federal Liability.--The liability of the 
Fund and of the United States Government arising out of any investment 
in a community development financial institution in accordance with 
this title shall be limited to the amount of the investment and the 
Fund shall be exempt from any assessments and other liabilities that 
may be imposed on controlling or principal shareholders by any Federal 
law or the law of any State. A community development financial 
institution that receives assistance pursuant to this title shall not 
be deemed to be an agency, department, or instrumentality of the United 
States.
    (g) Prohibition of Issuance of Securities.--The Fund may not issue 
stock, bonds, debentures, notes, or other securities.

SEC. 205. APPLICATIONS FOR ASSISTANCE.

    (a) Form and Procedures.--
            (1) In general.--An application for assistance under this 
        title shall be submitted by an applicant in such form and in 
        accordance with such procedures as the Board shall establish.
            (2) Regulations.--The Board shall publish regulations with 
        respect to application requirements and procedures not later 
        than 210 days after enactment of this title.
    (b) Minimum Requirements.--Except as provided in section 209, the 
Board shall require that the application--
            (1) demonstrate to the satisfaction of the Board that the 
        applicant is, or upon the receipt of a charter will be, a 
        community development financial institution;
            (2) demonstrate that the applicant will serve--
                    (A) a targeted population; or
                    (B) an area which is an investment area;
            (3) in the case of an applicant that has previously 
        received assistance under this title, demonstrate that the 
        applicant--
                    (A) has successfully carried out its 
                responsibilities under this title;
                    (B) has become or is about to become an entity that 
                will not be dependent upon assistance from the Fund for 
                continued viability; and
                    (C) will expand its operations into a new 
                investment area, offer new services, or will increase 
                the volume of its current business;
            (4) in the case of a community development financial 
        institution with existing operations, demonstrate a record of 
        success of serving investment areas or targeted populations;
            (5) include a detailed and comprehensive strategic plan for 
        the organization that contains--
                    (A) a business plan of at least 5 years that 
                demonstrates the applicant is properly managed and has 
                the capacity to form and operate a community 
                development financial institution that is, or will 
                become, an entity that will not be dependent upon 
                assistance from the Fund for continued viability;
                    (B) a statement that the applicant has, or will 
                have, in its charter or other governing documents a 
                primary commitment to community development, or other 
                evidence of a prior history and a continuing 
                affirmation of a primary commitment to community 
                development;
                    (C) an analysis of the needs of the investment 
                areas or targeted populations and a strategy for how 
                the applicant will attempt to meet those needs;
                    (D) a plan to coordinate use of assistance from the 
                Fund with existing assistance programs of the Federal 
                Government, State and local governments, Indian tribes, 
                and government-sponsored enterprises and with private 
                sector financial services;
                    (E) a statement that the proposed activities of the 
                applicant are consistent with existing economic, 
                community, and housing development plans adopted by or 
                applicable to the investment areas;
                    (F) a description of how the applicant will 
                affiliate, network, or otherwise coordinate with a full 
                range of community organizations and financial 
                institutions which provide, or will provide, capital, 
                credit, or secondary markets in order to assure that 
                banking, economic development, investment, affordable 
                housing, and other related services will be available 
                within the investment areas or to targeted populations; 
                and
                    (G) such other information as the Board deems 
                appropriate for inclusion in the strategic plan;
            (6) demonstrate that the applicant will carry on its 
        activities consistent with the purposes of this title within an 
        investment area or with respect to a targeted population;
            (7) include a detailed and specific statement of 
        applicant's plans and likely sources of funds to match the 
        amount of assistance from the Fund with funds from private 
        sources in accordance with the requirements of section 208(e); 
        and
            (8) include such other information as the Board may 
        require.
    (c) Pre-Application Outreach Program.--The Fund shall provide for 
an outreach program to identify and provide information to potential 
applicants and to increase the capacity of potential applicants to meet 
the application and other requirements of this title.
    (d) Conditions for Qualification of Holding Companies.--
            (1) Consolidated treatment.--A depository institution 
        holding company may qualify as a community development 
        financial institution only if the holding company and the 
        holding company's subsidiaries collectively satisfy the 
        requirements of clauses (i) and (ii) of subparagraph (A) of 
        section 203(3)(A).
            (2) Exclusion of subsidiary for failure to meet 
        consolidated treatment rule.--No subsidiary of a depository 
        institution holding company may qualify as a community 
        development financial institution if the holding company and 
        the company's subsidiaries collectively do not meet the 
        requirements of clauses (i) and (ii) of subparagraph (A) of 
        section 203(3)(A).

SEC. 206. COMMUNITY DEVELOPMENT PARTNERSHIPS.

    (a) Application.--An application for assistance may be filed 
jointly by a community development financial institution and a 
community development partner to carry out a community development 
partnership.
    (b) Application Requirements.--The Fund shall require a community 
development partnership application to--
            (1) meet the minimum requirements established for community 
        development financial institutions under section 205(b), except 
        that the criteria specified in paragraph (1) and subparagraphs 
        (A) and (B) of paragraph (5) of such section shall not apply to 
        the community development partner;
            (2) describe how each coapplicant will participate in 
        carrying out the community development partnership and how the 
        partnership will enhance activities serving the investment area 
        or targeted population; and
            (3) demonstrate that the community development partnership 
        activities are consistent with the strategic plan submitted by 
        the community development financial institution coapplicant.
    (c) Selection Criteria.--The Fund shall consider a community 
development partnership application based on the selection criteria set 
out in section 207, except that the criterion specified in 
subparagraphs (A) and (L) of subsection (a)(2) of such section shall 
not apply to the community development partner.
    (d) Limitation on Distribution of Assistance.--Assistance provided 
upon approval of an application under this section shall be distributed 
only to the community development financial institution coapplicant, 
and shall not be used to fund any activities carried out directly by 
the community development partner or an affiliate of the partner.
    (e) Performance Goals.--The Fund shall negotiate performance goals 
for each community development partnership in the manner provided in 
section 208(f)(3)(B). Such performance goals shall be incorporated into 
the performance goals of the community development financial 
institution coapplicant.
    (f) Other Requirements and Limitations.--All other requirements and 
limitations imposed by this subtitle on a community development 
financial institution assisted under this subtitle shall apply (in the 
manner that the Fund determines to be appropriate) to assistance 
provided to carry out community development partnerships. The Fund may 
establish additional guidelines and restrictions on the use of Federal 
funds to carry out community development partnerships.

SEC. 207. SELECTION OF INSTITUTIONS.

    (a) Selection Criteria.--
            (1) In general.--Except as provided in section 209, the 
        Board shall, in the Board's discretion, select applications 
        that meet the requirements of section 205 and award assistance 
        from the Fund in accordance with section 208.
            (2) Factors to be considered.--In selecting applications, 
        the Board shall consider applications based on the following 
        factors and such other factors as the Board may determine to be 
        appropriate:
                    (A) The likelihood of success of the applicant in 
                forming and operating a community development financial 
                institution.
                    (B) The range and comprehensiveness of the capital, 
                credit, and development services to be provided by the 
                applicant.
                    (C) The extent of the need, as measured by 
                objective criteria of distress, within the investment 
                areas or targeted populations for the types of 
                activities proposed by the applicant.
                    (D) The likelihood that the proposed activities 
                will benefit a significant portion of the investment 
                areas or targeted populations or, in the case of a 
                community development financial institution with 
                existing operations, evidence of a record of success in 
                serving investment areas or targeted populations.
                    (E) The extent to which the applicant will 
                concentrate its activities on serving low and very low-
                income families.
                    (F) The evidence of the extent of a broad cross-
                section of support from the investment areas or 
                targeted populations.
                    (G) The experience and background of the proposed 
                management team.
                    (H) The amount of legally enforceable commitments 
                available at the time of application to meet or exceed 
                the matching requirements under section 208(e) and the 
                strength of the plan for raising the balance of the 
                match.
                    (I) In the case of applicants that have previously 
                received assistance pursuant to this title, the extent 
                to which they have met or exceeded the performance 
                goals established in connection with such assistance.
                    (J) The extent to which the proposed activities 
                will expand the employment base within the investment 
                areas or the targeted populations.
                    (K) The extent to which the applicant is, or will 
                be, community-owned or community-governed.
                    (L) Whether the applicant is, or will become, an 
                insured community development financial institution.
                    (M) Whether the applicant is, or will be located, 
                in an empowerment zone or enterprise community 
                designated under section 1391 of the Internal Revenue 
                Code of 1986 or a rural or urban area which is not an 
                empowerment zone or enterprise community and which has 
                a median income of 80 percent or less of the national 
                median income.
                    (N) In the case of an institution that is not an 
                insured community development financial institution, 
                the extent to which the institution has or will have 
                the ability to increase its resources through 
                affiliation with a secondary market, insured depository 
                institution, or other financial intermediary in order 
                to multiply the amount of capital or credit available 
                for community development.
                    (O) In the case of an insured depository 
                institution or insured credit union applicant, whether 
                the institution--
                            (i) has or will have a substantial 
                        affiliation with an entity or network of 
                        entities that are community development 
                        financial institutions; and
                            (ii) has a comprehensive plan for providing 
                        meaningful financial assistance to such an 
                        entity or network of entities.
    (b) Geographic Diversity.--
            (1) In general.--In addition to the above, in making its 
        selections the Board shall seek to fund a geographically 
        diverse group of applicants, which shall include applicants 
        from nonmetropolitan and rural areas and small cities.
            (2) Goal for funding.--The Board should seek to provide 
        funding for applicants which are serving nonmetropolitan and 
        rural areas and small cities with no less than one quarter of 
        the funds available to the Board in any year.
    (c) Publication Requirement.--The Board shall publish regulations 
with respect to its selection criteria not later than 210 days after 
the date of the enactment of this title.

SEC. 208. ASSISTANCE PROVIDED BY THE FUND.

    (a) Purpose of Assistance.--
            (1) General purposes.--The Fund shall work to promote an 
        environment hospitable to business formation, economic growth, 
        community development, and affordable housing in distressed 
        communities.
            (2) Coordination with other agencies and programs.--The 
        Fund shall coordinate the Fund's activities with existing 
        Federal and other community and economic development programs.
            (3) Assistance to institutions and partnerships.--
        Assistance may be provided to an existing qualified community 
        development financial institution or community development 
        partnership to--
                    (A) expand the institution's or partnership's 
                activities in order to serve investment areas or 
                targeted populations not currently served by another 
                qualified community development financial institution 
                or community development partnership receiving 
                assistance under this section;
                    (B) expand the volume of the institution's or 
                partnership's activities consistent with the purposes 
                of this title;
                    (C) form a new entity to undertake activities 
                consistent with the purposes of this title; or
                    (D) assist an existing entity to modify the 
                institution's or partnership's structure or activities 
                in order to undertake activities consistent with the 
                purposes of this title.
    (b) Types of Assistance.--
            (1) Financial assistance.--The Fund may provide financial 
        assistance, and make commitments to provide financial 
        assistance, to qualified community development financial 
        institutions or community development partnerships through 
        equity investments, loans, deposits, membership shares, and 
        grants.
            (2) Technical assistance.--The Fund may also provide 
        technical assistance, including training, and grants for 
        technical assistance to qualified community development 
        financial institutions or community development partnerships.
            (3) Allocation.--The allocation of awards of assistance 
        between insured and uninsured community development financial 
        institutions shall be in the discretion of the Board.
            (4) Rules relating to equity investments.--
                    (A) Limitation on equity investment.--The Fund 
                shall structure financial assistance to a qualified 
                community development financial institution in such a 
                manner that the provision of such assistance does not 
                result in the Fund's--
                            (i) ownership of more than 50 percent of 
                        the equity of such institution; or
                            (ii) control of the operations of such 
                        institution.
                    (B) Fund deemed not to control.--Notwithstanding 
                any other provision of law, the Fund shall not be 
                deemed to control a qualified community development 
                financial institution by reason of any assistance 
                provided under this title for the purpose of any other 
                applicable law to the extent the Fund complies with 
                paragraph (1).
                    (C) Form of investment.--With respect to equity 
                investments, the Fund shall hold only transferable, 
                nonvoting investments, except that such equity 
                investments may provide for convertibility to voting 
                stock upon transfer by the Fund.
            (5) Deposits not subject to collateral or security 
        requirements.--Notwithstanding any other provision of law, 
        deposits made pursuant to this section in qualified insured 
        community development financial institutions shall not be 
        subject to any requirement for collateral or security.
            (6) Limitations on obligations.--Direct loan obligations 
        may be incurred only to the extent that appropriations of 
        budget authority to cover their costs, as defined in section 
        502 of the Congressional Budget Act of 1974, are made in 
        advance.
    (c) Purpose of Financial Assistance.--Financial assistance made 
available under this title may be used by assisted institutions to 
develop or support--
            (1) commercial facilities that enhance revitalization, 
        community stability, or job creation and retention efforts;
            (2) business creation and expansion efforts that--
                    (A) create or retain jobs for low-income people;
                    (B) enhance the availability of products and 
                services to low-income people; or
                    (C) create or facilitate the retention of 
                businesses owned by low-income people or residents of a 
                targeted area;
            (3) community facilities that provide benefits to low-
        income people or enhance community stability;
            (4) the provision of basic financial services to low-income 
        people or residents of a targeted area;
            (5) the provision of development services;
            (6) home ownership opportunities that are affordable to 
        low-income households;
            (7) rental housing that is principally affordable to low-
        income households; and
            (8) other activities determined to be appropriate by the 
        Fund.
    (d) Amount of Assistance.--
            (1) In general.--Except as provided in paragraph (2), the 
        Fund may provide--
                    (A) not to exceed $5,000,000 of assistance per 
                application to any 1 qualified insured community 
                development financial institution, including such 
                institution's affiliate or community development 
                partnership; and
                    (B) not to exceed $2,000,000 per application to any 
                other qualified community development financial 
                institution, including such institution's affiliate or 
                community development partnership.
            (2) Exception.--In the case of an existing community 
        development financial institution that proposes to serve an 
        investment area or targeted population outside of any State or 
        metropolitan area presently served by the institution, the Fund 
        shall have the discretion to provide assistance in an amount 
        exceeding the maximum amount established in paragraph (1) if--
                    (A) the additional amount is used to establish 
                affiliates to serve such investment area or targeted 
                population;
                    (B) the existing community development financial 
                institution is located in a State other than that of 
                the new affiliate; and
                    (C) no other application for assistance has been 
                submitted to the Board under which the needs of the 
                target community could be met.
            (3) Authority to set minimum amounts of assistance.--The 
        Fund shall have the authority to set minimum amounts of 
        assistance per institution.
    (e) Matching Requirements.--
            (1) Insured community development financial institutions or 
        partnerships.--Subject to paragraph (3), the Fund may provide 
        no assistance to qualified insured community development 
        financial institutions or community development partnerships 
        unless each dollar provided by the Fund is matched by no less 
        than 1 dollar of equity, deposits or membership shares.
            (2) Other matching requirements.--Subject to paragraph (3), 
        the Fund shall require a match for all other assistance, the 
        amount and form of which shall be in the discretion of the 
        Fund.
            (3) No matching requirements for certain types of 
        assistance.--The Fund may not establish matching requirements 
        with respect to assistance provided in the form of deposits or 
        membership shares of $100,000 or less, technical assistance, or 
        grants for technical assistance.
            (4) Legally enforcible commitments required.--
                    (A) In general.--The Fund shall provide no 
                assistance except technical assistance or grants for 
                technical assistance until a qualified community 
                development financial institution or community 
                development partnership has secured legally enforceable 
                commitments for the entire match required.
                    (B) Coordination with fund authority to make 
                commitments.--Subparagraph (A) shall not restrict the 
                authority of the Fund under subsection (b)(1) to make a 
                commitment to provide financial assistance to a 
                qualified community development financial institution 
                or community development partnership to the extent such 
                commitment is contingent on the institution or 
                partnership meeting the requirements of this 
                subsection.
            (5) Form of payments.--Assistance may be provided in 1 lump 
        sum, or over a period of time, as determined by the Fund.
            (6) Other Federal assistance may not be treated as matching 
        funds.--No funds or assistance provided to any qualified 
        community development financial institution or community 
        development partnership by any agency or instrumentality of the 
        Federal Government may be taken into account or otherwise 
        treated as matching funds for purposes of this subsection.
    (f) Terms and Conditions.--
            (1) In general.--The Fund shall provide assistance 
        authorized under this title in such form and subject to such 
        restrictions as are necessary to ensure that, to the maximum 
        extent practicable--
                    (A) all assistance granted is used by the qualified 
                community development financial institution or 
                community development partnership in a manner 
                consistent with the purposes of this title;
                    (B) qualified community development financial 
                institutions or community development partnerships 
                receiving assistance that are not otherwise regulated 
                by the Federal Government or by a State government are 
                financially and managerially sound;
                    (C) assistance results in a net increase in 
                capital, credit, and development services, both 
                nationally and in the local communities in which 
                assistance is provided; and
                    (D) assistance is provided in a manner that 
                encourages affiliations and partnerships between 
                insured depository institutions, secondary markets or 
                other sources of credit or leverage and local 
                organizations dedicated to community development.
            (2) Consultation with banking regulators.--Before providing 
        assistance to a qualified insured community development 
        financial institution, the Board shall consult with the 
        appropriate Federal banking agency or, in the case of an 
        insured credit union, the National Credit Union Administration.
            (3) Assistance agreement.--
                    (A) In general.--The Board shall impose 
                restrictions on the use of assistance through a stock 
                purchase agreement, share purchase agreement, or 
                through a contract entered into in consideration for 
                the provision of assistance.
                    (B) Performance goals.--
                            (i) Required.--Any agreement or contract 
                        referred to in subparagraph (A) shall require 
                        institutions assisted under this title to 
                        comply with performance goals.
                            (ii) Negotiation of goals.--The performance 
                        goals shall be negotiated between the Board and 
                        each qualified community development financial 
                        institution receiving assistance based upon the 
                        strategic plan submitted pursuant to section 
                        205(b)(5).
                            (iii) Renegotiation.--The performance goals 
                        may be renegotiated jointly as necessary or 
                        appropriate, subject to subparagraph (C) of 
                        this section.
                            (iv) Consultation with banking agencies.--
                        Activity levels for insured community 
                        development financial institutions shall be 
                        determined by the Board in consultation with 
                        the appropriate Federal banking agency or, in 
                        the case of an insured credit union, with the 
                        National Credit Union Administration.
                    (C) Contract sanctions.--
                            (i) In general.--Any agreement or contract 
                        referred to in subparagraph (A) shall specify 
                        sanctions available to the Board, in the 
                        Board's discretion, in the event of 
                        noncompliance with the purposes of this title 
                        or the terms of the agreement or contract.
                            (ii) Certain sanctions available.--The 
                        sanctions may include revocation of approval of 
                        the application, terminating or reducing future 
                        assistance, requiring repayment of assistance, 
                        and requiring changes to the performance goals 
                        imposed pursuant to subparagraph (B) or to the 
                        strategic plan submitted pursuant to section 
                        205(b)(5).
                            (iii) Consultation with banking agencies.--
                        In the case of an insured community development 
                        financial institution, the Board shall consult 
                        with the appropriate Federal banking agency or, 
                        in the case of an insured credit union, the 
                        National Credit Union Administration, before 
                        imposing sanctions pursuant to this paragraph.
            (4) Review.--
                    (A) In general.--At least annually, the Fund shall 
                review the performance of each assisted qualified 
                community development financial institution or 
                community development partnership in carrying out the 
                institution's or partnership's strategic plan and 
                performance goals.
                    (B) Consultation with tribal governments.--In 
                reviewing the performance of any assisted qualified 
                community development financial institution whose 
                investment area includes an Indian reservation, the 
                Board shall consult with, and seek input from, any 
                appropriate tribal government.
            (5) Reporting.--The Board shall require each qualified 
        community development financial institution receiving 
        assistance to submit an annual report to the Fund on the 
        institution's activities and financial condition, the 
        institution's success in meeting performance goals, and the 
        institution's compliance with the other requirements of this 
        title.
    (g) Authority To Sell Equity Investments and Loans.--The Board 
shall have the authority at any time to sell its investments and loans 
and may, in its discretion, retain the power to enforce limitations on 
assistance entered into in accordance with the requirements of this 
title.
    (h) No Authority To Limit Supervision and Regulation.--No provision 
of this title shall affect any authority of the appropriate Federal 
banking agency or, in the case of an insured credit union, the National 
Credit Union Administration, to supervise and regulate an insured 
community development financial institution.

SEC. 209. CAPITALIZATION ASSISTANCE TO ENHANCE LIQUIDITY.

    (a) Assistance.--
            (1) In general.--Notwithstanding the provisions of section 
        208, the Fund may provide assistance for the purpose of 
        providing capital to organizations that will purchase loans or 
        otherwise enhance the liquidity of community development 
        financial institutions if--
                    (A) the primary purpose of such organizations is to 
                promote community development; and
                    (B) any assistance received is matched with funds--
                            (i) from sources other than the Federal 
                        Government;
                            (ii) on the basis of not less than $1 for 
                        each dollar provided by the Fund; and
                            (iii) that are comparable in form and value 
                        to the assistance provided by the Fund.
            (2) Limitation on other assistance.--An organization which 
        receives assistance under this section may not receive other 
        financial or technical assistance under this subtitle.
    (b) Selection.--The selection of organizations to receive 
assistance under this section shall be at the discretion of the Fund 
and in accordance with criteria established by the Fund. In 
establishing such criteria, the Fund shall take into account the 
criteria contained in sections 205(b) and 207, as appropriate.
    (c) Amount of Assistance.--
            (1) Maximum amount limitation.--The Fund may provide a 
        total of not more than $5,000,000 of assistance to an 
        organization under this section during any 3-year period.
            (2) Form of payment.--Assistance may be provided in a lump 
        sum or over a period of time, as determined by the Fund.
    (d) Audit and Report Requirements.--
            (1) In general.--Organizations that receive assistance from 
        the Fund in accordance with this section shall--
                    (A) submit to the Fund not less than once in every 
                18-month period, financial statements audited by an 
                independent certified public accountant;
                    (B) submit an annual report on its activities; and
                    (C) keep such records as may be necessary to 
                disclose the manner in which any assistance under this 
                section is used.
            (2) Access.--The Fund shall have access, on demand and for 
        the purposes of determining compliance with this section, to 
        any records of such organizations.
    (e) Limitations on Liability.--
            (1) Liability of fund.--The liability of the Fund and the 
        United States Government arising out of the provision of 
        assistance to any organization in accordance with this section 
        shall be limited to the amount of such assistance. The Fund 
        shall be exempt from any assessments and any other liability 
        that may be imposed on controlling or principal shareholders by 
        any Federal law or the law of any State.
            (2) Liability of government.--
                    (A) No obligation to provide funds.--This section 
                shall not be construed as obliging the Federal 
                Government, either directly or indirectly, to provide 
                any funds to any organization assisted pursuant to this 
                section, or to honor, reimburse, or otherwise guarantee 
                any obligation or liability of such an organization.
                    (B) No full faith and credit.--This section shall 
                not be construed to imply that any such organization or 
                any obligation or security of any such organization is 
                backed by the full faith and credit of the United 
                States.
    (f) Use of Proceeds.--Any proceeds from the sale of loans to an 
organization assisted under this section shall be used by the seller 
for community development purposes.

SEC. 210. ENCOURAGEMENT OF PRIVATE ENTITIES.

    The Board may cause to be incorporated, or encourage the 
incorporation of, private nonprofit and for-profit entities that will 
complement the activities of the Fund in carrying out the purposes of 
this title. The purposes of any such entities shall be limited to 
investing in and assisting community development financial institutions 
in a manner similar to the activities of the Fund under this title. Any 
such entities shall be managed exclusively by private individuals who 
are selected in accordance with the laws of the jurisdiction of 
incorporation.

SEC. 211. CLEARINGHOUSE FUNCTION.

    The Fund shall establish and maintain an information clearinghouse 
in coordination with the Departments of Agriculture, Commerce, and 
Housing and Urban Development, the Small Business Administration, other 
Federal agencies, and community development financial institutions--
            (1) to cause to be collected, compiled, and analyzed 
        information pertinent to community development financial 
        institutions that will assist in creating, developing, 
        expanding, and preserving these institutions; and
            (2) to cause to be established a service center for 
        comprehensive information on financial, technical, and 
        management assistance, case studies of the activities of 
        community development financial institutions, regulations, and 
        other information that may promote the purposes of this title.

SEC. 212. TRAINING ASSISTANCE FOR ORGANIZING AND OPERATING COMMUNITY 
              DEVELOPMENT FINANCIAL INSTITUTIONS.

    (a) Assistance to Establish and Operate Community Development 
Financial Institutions.--The Fund shall carry out a program under this 
subsection to provide training assistance in establishing and operating 
community development financial institutions, which shall include the 
following activities:
            (1) Educating organizations, financial institutions, and 
        other entities and persons in low-income neighborhoods and 
        elsewhere regarding the need for, and the capabilities, 
        functions, and organization of, community development financial 
        institutions.
            (2) Educating and training organizations, depository and 
        other financial institutions, and other entities and persons in 
        organizing community development financial institutions.
            (3) Recruiting, and assisting organizations, and other 
        entities and persons to recruit existing organizations, 
        depository and other financial institutions, and other entities 
        and persons to establish community development financial 
        institutions.
            (4) Assisting entities and persons interested in 
        establishing qualified community development financial 
        institutions in identifying community lending needs.
            (5) Educating and training regarding management and 
        operation of community development financial institutions, 
        including--
                    (A) designing and utilizing lending practices to 
                target credit to low-income families and neighborhoods;
                    (B) complying with requirements regarding financial 
                and managerial soundness pursuant to section 
                208(f)(1)(B) and any recordkeeping requirements 
                pursuant to section 213(a)(1).
                    (C) Implementing effective asset management and 
                fund development techniques; and
            (6) Collecting and disseminating information from various 
        qualified community development financial institutions 
        regarding successful management and operation techniques, 
        lending practices, and lending activities.
    (b) Provision of Assistance.--The Fund may provide training 
assistance under this section directly or through public or private 
organizations pursuant to contracts with such organizations.
    (c) Administration.--The Fund may require--
            (1) that training assistance provided under this section to 
        qualified community development lenders and other applicants 
        that receive assistance under section 208 be made available 
        pursuant to a request for such assistance in an application 
        under section 205;
            (2) the selection of the application for the award of 
        assistance; and
            (3) the inclusion of terms in the agreement or contract for 
        assistance under section 208(f)(3).

SEC. 213. RECORDKEEPING, REPORTS, AND AUDITS.

    (a) Recordkeeping.--
            (1) Maintenance by institution.--A qualified community 
        development financial institution receiving assistance from the 
        Fund shall keep such records as may be reasonably necessary to 
        disclose the disposition of any assistance under this title and 
        to ensure compliance with the requirements of this title.
            (2) Fund access to records.--The Fund shall have access, 
        for the purpose of determining compliance with this title, to 
        any books, documents, papers, and records of a qualified 
        community development financial institution receiving 
        assistance from the Fund that are pertinent to assistance 
        received under this title.
    (b) Reports.--
            (1) Annual report.--The Fund shall conduct an annual 
        evaluation of the activities carried out pursuant to this title 
        and shall submit a report on the Fund's findings to the 
        President within 120 days of the end of each fiscal year of the 
        Fund. The report shall include financial statements audited in 
        accordance with subsection (c).
            (2) Institutional voice for community development.--
                    (A) Ongoing study.--The Fund shall conduct, or 
                cause to be conducted, an ongoing study to identify and 
                evaluate the most effective and financially sound 
                policies and practices for encouraging investment in 
                distressed communities, including small business and 
                commercial lending, business formation and expansion, 
                community and economic development, commercial real 
                estate and multi-family housing, and home mortgages.
                    (B) Additional factors.--In addition to the factors 
                described in subparagraph (A), the Fund may study, or 
                cause to be studied, (in connection with the study 
                conducted pursuant to such subparagraph) related 
                matters, such as identification of sources of and 
                access to capital and loans for community investment, 
                development of secondary markets for economic and 
                community development, small business and commercial 
                loans, and home mortgage loans and investments, and 
                methods to involve all segments of the financial 
                services industry in community development.
                    (C) Study of banking practices on indian 
                reservations.--In addition to the study required under 
                subparagraph (A), the Fund shall conduct a separate and 
                thorough study of banking practices on Indian 
                reservations that specifically addresses the unique 
                lending issues with respect to Indian reservations such 
                as lending with respect to trust lands, Indian 
                headrights, or other trust property, availability of 
                collateral, and related issues.
                    (D) Consultation.--In the conduct of the studies 
                required under subparagraphs (A) and (C), the Fund 
                shall consult, or cause consultation with, the 
                Comptroller of the Currency, the Federal Deposit 
                Insurance Corporation, the Board of Governors of the 
                Federal Reserve System, the Federal Housing Finance 
                Board, the Farm Credit Administration, the Director of 
                the Office of Thrift Supervision, the National Credit 
                Union Administration, Indian tribal governments, 
                community reinvestment, civil rights, consumer and 
                financial organizations, and such representatives of 
                agencies or other persons as the Fund may determine.
                    (E) Reports.--
                            (i) Preliminary report.--Within 270 days 
                        after the date of the enactment of this title, 
                        the Fund shall submit a report to the President 
                        containing the Fund's initial findings and 
                        recommendations regarding the matters set forth 
                        in subparagraphs (A) and (C).
                            (ii) Subsequent reports.--The Fund shall 
                        submit an annual report to the President 
                        containing the Fund's findings and 
                        recommendations regarding the matters set forth 
                        in subparagraph (A) with the annual report 
                        required by subsection (b)(1).
            (3) Investment, governance, and role of fund.--
                    (A) Study required.--Before the end of the 6-year 
                period beginning on the date of the enactment of this 
                title, the Fund, in accordance with the procedures 
                described in subparagraphs (A) and (B) of paragraph 
                (2), shall conduct a study evaluating the structure, 
                governance, and performance of the Fund.
                    (B) Report.--A report on the study conducted 
                pursuant to subparagraph (A) shall be submitted to the 
                President.
                    (C) Evaluation and Recommendations.--The report 
                submitted pursuant to subparagraph (B) shall include--
                            (i) an evaluation of the overall 
                        performance of the Fund in meeting the purposes 
                        of this title;
                            (ii) any recommendation of the Fund for--
                                    (I) restructuring the Board:
                                    (II) altering procedures under 
                                which the Fund is governed; or
                                    (III) the future role of the Fund 
                                in addressing community development; 
                                and
                            (iii) an assessment of the ability of the 
                        Fund to become a private, self-sustaining 
                        entity capable of fulfilling the purposes of 
                        this title.
    (c) Examination and Audit.--The financial statements of the Fund 
shall be audited in accordance with section 9105 of title 31, United 
States Code, except that audits required by section 9105(a) of such 
title shall be performed annually.

SEC. 214. INVESTMENT OF RECEIPTS AND PROCEEDS.

    Any dividends on equity investments and proceeds from the 
disposition of investments, deposits, or membership shares that are 
received by the Fund as a result of assistance provided pursuant to 
section 208 or 209 shall be deposited and accredited, subject to 
amounts approved in appropriation Acts, to an account of the Fund 
established to carry out the authorized purposes of this title. Upon 
request of the chief executive officer, the Secretary of the Treasury 
shall invest amounts deposited in such account in public debt 
securities with maturities suitable to the needs of the Fund, as 
determined by the chief executive officer, and bearing interest at 
rates determined by the Secretary of the Treasury, taking into 
consideration current market yields on outstanding marketable 
obligations of the United States of comparable maturities. Amounts 
deposited into the account and interest earned on such amounts pursuant 
to this section shall be available to the Fund until expended.

SEC. 215. ENFORCEMENT PROVISIONS.

    (a) Regulations.--
            (1) In general.--The Board shall prescribe such regulations 
        as may be necessary to carry out the requirements of this Act.
            (2) Regulations required.--The regulations prescribed under 
        paragraph (1) shall include regulations to--
                    (A) prevent conflicts of interest on the part of 
                directors, officers, and employees of qualified 
                community development financial institutions as the 
                Board determines to be appropriate; and
                    (B) establish such standards with respect to loans 
                by a qualified community development institution to any 
                director, officer, or employee of such institution as 
                the Board determines to be appropriate, including loan 
                amount limitations.
    (b) Administrative Enforcement.--
            (1) In general.--The provisions of this Act, and 
        regulations prescribed under and agreements entered into under 
        this Act, shall be enforced under section 8 of the Federal 
        Deposit Insurance Act by--
                    (A) the appropriate Federal banking agency, in the 
                case of an insured community development financial 
                institution; and
                    (B) the Board, in the case of a community 
                development financial institution which is not an 
                insured community development financial institution.
            (2) Applicability of section 8 to board.--For purposes of 
        applying section 8 of the Federal Deposit Insurance Act to the 
        provisions of this Act in accordance with paragraph (1)--
                    (A) a violation of this Act, or any regulation 
                prescribed under or any agreement entered into under 
                this Act, shall be treated as a violation of the 
                Federal Deposit Insurance Act; and
                    (B) the Board shall be treated as an appropriate 
                Federal banking agency.
    (c) Criminal Provision.--Section 657 of title 18, United States 
Code, is amended by inserting ``or any qualified community development 
financial institution receiving financial assistance under the 
Community Development Banking and Financial Institutions Act of 1993,'' 
after ``small business investment company,''.

SEC. 216. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Fund, to remain available until expended, $60,000,000 for fiscal year 
1994, $104,000,000 for fiscal year 1995, $107,000,000 for fiscal year 
1996, and $111,000,000 for fiscal year 1997, or such greater sums as 
may be appropriated, to carry out the purposes of the title.
    (b) Availability for Funding BEA.--Not less than 33\1/3\ percent of 
the amounts appropriated to the Fund for any fiscal year pursuant to 
the authorization in subsection (a) shall be available for use in 
carrying out sections 232 and 233 of the Bank Enterprise Act and the 
amendments made by such sections to other provisions of law.
    (c) Administrative Expenses.--The Fund may set aside up to 
$10,000,000 each fiscal year to pay administrative costs and expenses.
    (d) Capitalization Assistance.--Not more than 5 percent of the 
amounts authorized to be appropriated under subsection (a) may be used 
as provided in section 209.

SEC. 217. CONFORMING AMENDMENT.

    Section 8F(a)(2) of the Inspector General Act of 1978 (5 U.S.C. 
App. 8F(a)(2)) is amended by inserting ``the Community Development 
Banking and Financial Institutions Fund,'' immediately following ``the 
Commodity Futures Trading Commission,''.

SEC. 218. APPOINTMENT OF COMMUNITY ENTERPRISE ASSESSMENT CREDIT BOARD.

    The President shall appoint the members of the Community Enterprise 
Assessment Credit Board described in section 233(d)(2)(D) of the Bank 
Enterprise Act before the end of the 90-day period beginning on the 
date of the enactment of this Act.

SEC. 219. COMMUNITY DEVELOPMENT CREDIT UNION ASSISTANCE.

    (a) Authorization of Additional Appropriations.--In addition to the 
amounts appropriated to the Community Development Credit Union 
Revolving Loan Fund pursuant to section 101(j) of the joint resolution 
entitled `Joint Resolution making continuing appropriations for the 
fiscal year 1980, and for other purposes'' and approved October 12, 
1979, there is authorized to be appropriated to the National Credit 
Union Administration Board for purposes of the Community Development 
Credit Union Revolving Loan Fund--
            (1) $3,000,000 for fiscal year 1994;
            (2) $4,000,000 for fiscal year 1995;
            (3) $4,000,000 for fiscal year 1996; and
            (4) $4,000,000 for fiscal year 1997.
    (b) Investment of Funds.--The National Credit Union Administration 
Board may invest any moneys in the Community Development Credit Union 
Revolving Loan Fund which are not needed for current expenditures in 
United States Treasury securities. Any interest accrued on such 
securities shall, subject to amounts approved in appropriation Acts, be 
deposited into and accredited to the Fund.
    (c) Authority.--Notwithstanding any other provision of law, the 
National Credit Union Administration Board may exercise the authority 
granted to the Board by the Community Development Credit Union 
Revolving Fund Transfer Act, including any additional appropriations 
made and earnings accrued, subject only to this section and to 
regulations prescribed by the Board.

SEC. 220. INSURED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION ACCESS TO 
              FEDERAL HOME LOAN BANK ADVANCES.

    Section 10 of the Federal Home Loan Bank Act (12 U.S.C. 1430) is 
amended by adding at the end the following new subsection:
    ``(k) Community Development Financial Institution Access to 
Advances.--Any insured community development financial institution (as 
defined in section 3(e) of the Community Development Banking and 
Financial Institutions Act of 1993) which meets the requirements of 
subparagraphs (A) and (B) of section 4(a)(1) may obtain advances from 
the appropriate Federal home loan bank in accordance with this section 
in the same manner and to the same extent as members of such bank 
without regard to any stock purchase requirement imposed on members 
under this Act.''.

SEC. 221. COMMUNITY INVESTMENT PROGRAM INCENTIVES.

    (a) Assets Derived From CIP Advances Includible Without Limitation 
for Purposes of QTL Test.--Section 10(m)(4)(C)(ii) of the Home Owners' 
Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the end 
the following new subclause:
                                    ``(VII) Loan assets derived from 
                                the proceeds of an advance made to the 
                                savings association from a Federal home 
                                loan bank under the community 
                                investment program of such bank.''.
    (b) Authority to Waive FHLB Stock Purchase Requirement in 
Connection With a CIP Advance.--Section 6(b) of the Federal Home Loan 
Bank Act (12 U.S.C. 1426(b)) is amended by adding at the end the 
following new paragraph:
            ``(6) Treatment of cip advances.--A Federal home loan bank 
        may waive the requirement that advances to such member from the 
        bank's community investment program be taken into account in 
        determining the amount of aggregate outstanding advances to the 
        member from the bank for purposes of this subsection.''.
    (c) Treatment of Economic Development Loans and Assets Derived From 
CIP Advances as Collateral for Additional FHLB Advances.--Section 10(a) 
of the Federal Home Loan Bank Act (12 U.S.C. 1430(a)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6);
            (2) in paragraph (6) (as so redesignated), by striking 
        ``(1) through (4)'' and inserting ``(1) through (5)''; and
            (3) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Economic development loans derived from the proceeds 
        of an advance made to a member from a Federal home loan bank 
        under the community investment program of such bank.''.

SEC. 222. 30 PERCENT LENDING CAP INCREASED.

    Paragraph (2) of the 1st subsection (e) of section 10 of the 
Federal Home Loan Bank Act (12 U.S.C. 1430(e)(2)) is amended by 
striking ``30 percent'' and inserting ``40 percent''.

            Passed the House of Representatives November 21, 1993.

            Attest:






                                                                 Clerk.

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