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

103d CONGRESS
  1st Session
                                H. R. 3474

     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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 1993

 Mr. Gonzalez introduced the following bill; which was referred to the 
            Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
     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.

    This title may be cited as the ``Regulatory Reform Act of 1993''.

   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 more than $5,000,000,000 
                        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 by any such 
                        agency 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 more 
                                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 by any such agency 
                                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) is in compliance with the 
                        requirements of subsection (b) (without regard 
                        to any exemption such institution may have from 
                        the requirements of such subsection under this 
                        subsection).
Notwithstanding paragraph (2), the audit committee of the holding 
company of an 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.

    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''.

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), as added by 
section 132(a) of the Federal Deposit Insurance Corporation 
Improvements Act of 1991) 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. 1831a) 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.--Section 39(d)(1) of the 
Federal Deposit Insurance Act is amended--
            (1) in the 1st sentence, by inserting ``or guideline'' 
        before the period; and
            (2) in the 2d sentence, by inserting ``or guidelines'' 
        after ``Such regulations''.
    (d) Effective Date.--The amendments made by subsection (a) shall be 
construed to have the same effective date as section 39 of the Federal 
Deposit Insurance Act, as provided in section 132(c) of the Federal 
Deposit Insurance Corporation Improvements Act of 1991.

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 pursuant to this 
paragraph, the Corporation shall minimize the regulatory burden imposed 
upon insured depository institutions to the greatest extent possible 
while taking into account the benefit of the information to the 
Corporation in enabling the Corporation to more accurately determine 
the total amount of insured deposits in the banking system.''.

                 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), 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 deposits of a Federal, State, or 
        local governmental entity or of any depositor referred to in 
        section 11(a)(2) shall not be deemed to be invalid pursuant to 
        paragraph (1)(B) solely because of changes in the collateral 
        made in accordance with such agreement that do not 
        substantially alter the degree of collateralization of such 
        deposits.''.

SEC. 113. BANK DEPOSIT FINANCIAL ASSISTANCE PROGRAM.

    Effective December 19, 1994, section 7(i)(1) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(i)(1)) is amended by inserting ``, or 
pursuant to any revocable trust established under the Bank Deposit 
Financial Assistance Program of the Department of Energy,'' after 
``written trust agreement''.

SEC. 114. COORDINATED AND UNIFIED EXAMINATIONS.

    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 paragraphs:
            ``(6) Coordinated examinations.--To minimize the disruptive 
        effects of examinations on the operations of insured depository 
        institutions, each appropriate 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 appropriate 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) obtain and use copies of reports of 
                examinations of insured depository institutions made by 
                any other appropriate Federal banking agency or 
                appropriate State bank supervisor.
            ``(7) Safety and soundness exams.--Notwithstanding any 
        provision of paragraph (6) 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) obtain and 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 be 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).
    (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 second 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 third 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).

                  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 secured by a subordinate lien 
on residential property, 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. HOME OWNERSHIP DEBT COUNSELING NOTIFICATION.

    Section 106(c)(5)(B)(ii) of the Housing and Urban Development Act 
of 1968 (12 U.S.C. 1701x(c)(5)(B)(ii)) is amended to read as follows:
                            ``(ii) before--
                                    ``(I) the end of the 45-day period 
                                beginning on the date on which the 
                                failure referred to in such 
                                subparagraph occurs, except that 
                                creditors shall not be required to 
                                provide such notification pursuant to 
                                this subclause more than once annually; 
                                and
                                    ``(II) any foreclosure on the 
                                property securing the loan.''.

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 REAL ESTATE SETTLEMENT 
              PROCEDURES ACT 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. SPECIAL RULES FOR DISCLOSURES FOR RADIO ADVERTISING OF CREDIT 
              PLANS, DEPOSITS, 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.--An advertisement by radio broadcast to 
aid, promote, or assist, directly or indirectly, the extension of 
consumer credit under an open end credit plan meets 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 
                subparagraph (A) 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.--``If any advertisement''; and
            (5) by adding at the end the following new subsection:
    ``(e) Radio Advertisements.--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, meets the requirements of 
subsection (d) if the advertisement, clearly and conspicuously--
            ``(1) states the rate of the finance charge;
            ``(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.--An advertisement by radio broadcast to 
aid, promote, or assist, directly or indirectly, the extension of 
consumer credit under an open end credit plan secured by a consumer's 
principal dwelling meets 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.--An advertisement by radio broadcast to 
aid, promote, or assist, directly or indirectly, any consumer lease 
meets 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 sum of the amount financed and the finance 
        charge, which shall be described as the `total of payments'; 
        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 
                subparagraph (A) 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 report on the findings 
        and conclusions of the Secretary with respect to the study 
        conducted under subsection (a) to the Committee on Banking, 
        Finance and Urban Affairs of the House of Representatives and 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate.
            (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 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 on the findings 
        and conclusions of the Secretary with respect to the study 
        conducted under subsection (a) to the Committee on Banking, 
        Finance and Urban Affairs of the House of Representatives and 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate.
            (2) Recommendations.--The report shall contain any 
        recommendations for administrative action that the Secretary of 
        the Treasury may determine to be appropriate.

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 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 the continuing appropriateness of collecting 
        data for purposes of the Fair Housing Act which is not required 
        to be collected under the Home Mortgage Disclosure Act of 1975.
    (b)  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 enactment of 
        this Act, report to the Congress and make 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--
            (1) to 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); and
            (2) to simplify instructions accompanying such reports and 
        statements and to 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.--No new 
regulation issued by a Federal banking agency which imposes additional 
reporting, disclosure or other 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--
            (1) the agency makes a finding that--
                    (A) an emergency exists which requires the 
                regulation to take effect before the 1st day of such 
                calendar quarter; or
                    (B) a delay would have a substantial impact upon 
                the safety and soundness of insured depository 
                institutions; or
            (2) the regulation is required to take effect before the 
        1st day of such calendar quarter pursuant to any other 
        provision of law.

SEC. 137. ELIMINATION OF DUPLICATIVE FILINGS.

    The Federal banking agencies (as defined in section 3 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) issue an appropriate revision to any such standard or 
        principle (which may not be less stringent than generally 
        accepted accounting principles) before the end of the 180-day 
        period beginning on the date of the enactment of this Act.

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

    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 Bankers' Banks.--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--
                    (A) 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''; and
                    (B) by striking ``employees'' and inserting 
                ``employees (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--
                    (A) 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''; and
                    (B) by striking ``employees'' and inserting 
                ``employees (such association is commonly referred to 
                as a `bankers' bank')''.
    (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''.

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.''.

         TITLE II--COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Community Development Banking and 
Financial Institutions Act of 1993''.

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) Purpose.--The purpose of this title is to create a Community 
Development Banking and Financial Institutions Fund that will support a 
program of investment in and assistance to community development 
financial institutions. The Community Development Banking and Financial 
Institutions Fund will provide financial and technical assistance, 
including training, to community development financial institutions, 
serve as a national information clearinghouse, and be an institutional 
voice for community development. The community development financial 
institutions that the Community Development Banking and Financial 
Institutions Fund supports will provide capital, credit, and 
development services to targeted investment areas or populations, and 
will promote economic revitalization and community development.

SEC. 203. DEFINITIONS.

    (a) Appropriate Federal Banking Agency.--The term ``appropriate 
Federal banking agency'' has the same meaning given such term in 
section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)).
    (b) Community Development Financial Institution.--The term 
``community development financial institution'' means any bank, savings 
association, depository institution holding company, credit union, 
micro-enterprise loan fund, community development corporation, 
community development revolving loan fund, minority-owned or other 
insured depository institution, or non-depository organization that--
            (1) has as its primary mission the promotion of community 
        development through the provision of capital, credit, or 
        development services in its investment areas or to targeted 
        populations; and
            (2) encourages, through representation on its governing 
        board or otherwise, the input of residents in the investment 
        area or the targeted populations.
A depository institution holding company may qualify as a community 
development financial institution only if the holding company and its 
subsidiaries collectively satisfy the requirements of paragraphs (1) 
and (2). No subsidiary of a depository institution holding company may 
qualify as a community development financial institution if the holding 
company and its subsidiaries collectively do not meet the requirements 
of paragraphs (1) and (2). The term ``community development financial 
institution'' does not include an agency or instrumentality of the 
United States or an agency or instrumentality of any State or political 
subdivision thereof.
    (c) Depository Institution Holding Company.--The term ``depository 
institution holding company'' has the same meaning given such term in 
section 3(w) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)).
    (d) Development Services.--The term ``development services'' means 
activities conducted by a community development financial institution 
that promote community development by developing, supporting, and 
strengthening the lending, investment, and capacity-building activities 
undertaken by institutions, including, but not limited to--
            (1) business planning services;
            (2) financial and credit counseling services;
            (3) marketing and management assistance; and
            (4) administrative activities associated with lending or 
        investment.
    (e) Insured Community Development Financial Institution.--The term 
``insured community development financial institution'' means any 
community development financial institution that is an insured 
depository institution. The term also includes an insured credit union 
which has been designated as low-income by the National Credit Union 
Administration.
    (f) Insured Credit Union.--The term ``insured credit union'' has 
the same meaning given such term in section 101(7) of the Federal 
Credit Union Act (12 U.S.C. 1752(7)).
    (g) Insured Depository Institution.--The term ``insured depository 
institution'' has the same meaning given such term in section 3(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
    (h) Investment Area.--The term ``investment area'' means an 
identifiable community that--
            (1) meets 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
            (2) is located in an empowerment zone or enterprise 
        community designated under section 1391 of the Internal Revenue 
        Code of 1986.
    (i) Qualified Community Development Financial Institution.--The 
term ``qualified community development financial institution'' means a 
community development financial institution that meets the requirements 
of sections 5(b) (2) through (8) of this title.
    (j) Targeted Population.--The term ``targeted population'' means an 
identifiable group of low-income or disadvantaged persons that are 
underserved by existing financial institutions.

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

    (a) In General.--There is hereby established a corporate 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. The Fund 
shall have succession until dissolved. The charter of the Fund may be 
revised, amended, or modified by Congress at any time. 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 nine 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 Treasury.
                    (E) The Administrator of the Small Business 
                Administration.
                    (F) Four private citizens, appointed by the 
                President with the advice and consent of the Senate, 
                that collectively--
                            (i) represent community groups whose 
                        constituencies include low-income persons or 
                        residents of investment areas,
                            (ii) have expertise in the operations and 
                        activities of insured depository institutions, 
                        and
                            (iii) have expertise in community 
                        development and lending; provided that there 
                        should not be less than one member from each of 
                        the three categories described in clauses (i) 
                        through (iii) of this subparagraph.
            (3) Chairperson.--The President shall appoint from among 
        the members of the Board specified in paragraph (2)(F) a 
        chairperson of the Board, who shall serve at the pleasure of 
        the President for a term of two 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 two years.
            (5) Terms of appointed members.--
                    (A) In general.--Each member appointed pursuant to 
                paragraph (2)(F) shall serve at the pleasure of the 
                President for a term of four years, except as provided 
                in paragraph (5)(C).
                    (B) Vacancies.--Any member appointed to fill a 
                vacancy occurring prior to 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 four years and shall begin on the 
                date each member is appointed, except that two of the 
                members initially appointed pursuant to paragraph 
                (2)(F) shall be designated to serve at the pleasure of 
                the President for five years.
            (6) Acting officials.--In the event of a vacancy or absence 
        of the individual in any of the offices described in paragraphs 
        (2) (A) through (E), the official acting in that office shall 
        be a member of the Board.
            (7) Authority to delegate.--Each member of the Board 
        specified in paragraphs (2) (A) through (E) 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.--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. 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 three members of the 
        Board. A majority of the members of the Board in office shall 
        constitute a quorum.
    (c) Officers and Employees.--The Board shall appoint a Chief 
Executive Officer who will be responsible for the management of the 
Fund and such other duties deemed appropriate by the Board. The Board 
shall appoint a Chief Financial Officer who shall oversee all of the 
financial management activities of the Fund. The Board shall also 
appoint an Inspector General. The Board may appoint such other officers 
and employees of the Fund as the Board determines to be necessary or 
appropriate. The Chief Executive Officer, Chief Financial Officer, and 
up to 3 other officers of the Fund may be appointed without regard to 
the provisions of title 5 of the United States Code governing 
appointments in the Federal service and compensated without regard to 
chapter 51 and subchapter III of chapter 53 of title 5 of the United 
States Code, except that 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 four 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 its powers and duties, the 
Fund--
            (1) shall have all necessary and proper powers to carry out 
        its 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 its corporate name and complain 
        and defend in any court of competent jurisdiction;
            (4) may adopt, amend, and repeal bylaws, rules, and 
        regulations governing the manner in which its 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 its 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 its powers and 
        responsibilities as it deems necessary or appropriate for the 
        administration of the Fund.
    (e) Wholly-Owned Government Corporation.--
            (1) 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) 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.''; and
            (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, Territory, or the District of Columbia. 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.--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. 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.--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 as defined in 
        section 203(a);
            (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 five 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 of community 
                development;
                    (C) an analysis of the needs of the investment area 
                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 Federal, government-sponsored 
                enterprise, and State and local assistance programs, 
                and 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 area;
                    (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 area 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 
        the 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 207(d); 
        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.

SEC. 206. SELECTION OF INSTITUTIONS.

    (a) Selection Criteria.--The Board shall, in its discretion, select 
applications that meet the requirements of section 205 and award 
assistance from the Fund in accordance with section 207. In selecting 
applications, the Board shall consider applications based on, but not 
limited to--
            (1) the likelihood of success of the applicant in forming 
        and operating a community development financial institution;
            (2) the range and comprehensiveness of the capital, credit, 
        and development services to be provided by the applicant;
            (3) 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;
            (4) 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;
            (5) the extent to which the applicant will concentrate its 
        activities on serving low and very low-income families;
            (6) the evidence of the extent of a broad cross-section of 
        support from the investment areas or targeted populations;
            (7) the experience and background of the proposed 
        management team;
            (8) the amount of legally enforceable commitments available 
        at the time of application to meet or exceed the matching 
        requirements under section 207(d) and the strength of the plan 
        for raising the balance of the match;
            (9) in the case of applicants that have previously received 
        assistance pursuant to this title, the extent to which they 
        have met or exceeded their performance goals;
            (10) the extent to which the proposed activities will 
        expand the employment base within the investment areas or the 
        targeted populations;
            (11) the extent to which the applicant is, or will be, 
        community-owned or community-governed;
            (12) whether the applicant is, or will become, an insured 
        community development financial institution;
            (13) 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;
            (14) 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;
            (15) in the case of an insured depository institution or 
        insured credit union applicant, whether the institution--
                    (A) has or will have a substantial affiliation with 
                an entity or network of entities that are community 
                development financial institutions; and
                    (B) has a comprehensive plan for providing 
                meaningful financial assistance to such an entity or 
                network of entities; and
            (16) other factors deemed appropriate by the Board.
    (b) Geographic Diversity.--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.
    (c) Publication Requirement.--The Board shall publish regulations 
with respect to its selection criteria not later than 210 days after 
the date of enactment of this title.

SEC. 207. ASSISTANCE PROVIDED BY THE FUND.

    (a) Purpose of Assistance.--
            (1) The Fund shall work to promote an environment 
        hospitable to business information, economic growth, community 
        development, and affordable housing in distressed communities. 
        The Fund shall coordinate its activities with existing Federal 
        and other community and economic development programs.
            (2) Assistance may be provided to an existing qualified 
        community development financial institution to expand its 
        activities to serve investment areas or targeted populations 
        not currently served by another qualified community development 
        financial institution receiving assistance under this section 
        or to expand the volume of its activities consistent with the 
        purposes of this title, or to form a new entity to undertake 
        activities consistent with the purposes of this title, or to 
        assist an existing entity to modify its structure or activities 
        in order to undertake activities consistent with the purposes 
        of this title.
    (b) Types of Assistance.--
            (1) In general.--The Fund may provide financial assistance 
        to qualified community development financial institutions 
        through equity investments, loans, deposits, membership shares, 
        and grants. The Fund may also provide technical assistance, 
        including training, and grants for technical assistance to 
        qualified community development financial institutions. The 
        allocation of awards of assistance between insured and 
        uninsured community development financial institutions shall be 
        in the discretion of the Board: Provided, That due 
        consideration shall be given to the allocation of funds to 
        insured community development financial institutions.
            (2) Financial assistance.--The Fund shall structure 
        financial assistance to a qualified community development 
        financial institution in such a manner that it does not own 
        more than 50 percent of the equity of such institution and does 
        not control the operations of such institution. The Fund will 
        not be deemed to control such institution for the purposes of 
        applicable laws. With respect to equity investments, the Fund 
        shall hold only transferable, nonvoting investments. Such 
        equity investments may provide for convertibility to voting 
        stock upon transfer by the Fund.
            (3) Deposits.--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.
            (4) 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 retain 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 deemed appropriate by the Fund.
    (d) Amount of Assistance.--The Fund may provide up to $5,000,000 of 
assistance per application to any one qualified insured community 
development financial institution and up to $2,000,000 per application 
to any other qualified community development financial institution. The 
Fund shall have the authority to set minimum amounts of assistance per 
institution.
    (e) Matching Requirements.--
            (1) Assistance provided to qualified insured community 
        development financial institutions, other than deposits or 
        membership shares of $100,000 or less, technical assistance, or 
        grants for technical assistance, shall be matched by no less 
        than one dollar of equity, deposits or membership shares for 
        each dollar provided by the Fund. The Fund shall require a 
        match for all other assistance, the amount and form of which 
        shall be in the discretion of the Fund: Provided, That the Fund 
        shall in no event require assistance provided in the form of 
        deposits or membership shares of $100,000 or less, technical 
        assistance, or grants for technical assistance to be matched. 
        The Fund shall provide no assistance except technical 
        assistance or grants for technical assistance until a qualified 
        community development financial institution has secured legally 
        enforceable commitments for the entire match required. 
        Assistance may be provided in one lump sum, or over a period of 
        time, as determined by the Fund.
            (2) Assistance shall be matched with funds from sources 
        other than the Federal Government.
    (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 in a manner 
                consistent with the purposes of this title;
                    (B) qualified community development financial 
                institutions 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, both 
                nationally and in the local communities in which 
                assistance is provided, in capital, credit, and 
                development services; 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.--Prior to 
        providing assistance to a qualified insured community 
        development financial institution, the Board should 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) 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) Such agreement or contract shall require 
                institutions assisted under this title to comply with 
                performance 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). The performance goals 
                may be renegotiated jointly as necessary or 
                appropriate, subject to subparagraph (C) of this 
                section. Activity levels for insured community 
                development financial institutions should 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) The agreement or contract shall specify 
                sanctions available to the Board, in its discretion, in 
                the event of noncompliance with the purposes of this 
                title or the terms of the agreement. 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). 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.--At least annually, the Board shall review the 
        performance of each assisted qualified community development 
        financial institution in carrying out its strategic plan and 
        performance goals.
            (5) Reporting.--The Board shall require each qualified 
        community development financial institution receiving 
        assistance to submit an annual report to the Fund on its 
        activities, its financial condition, its success in meeting 
        performance goals, and its compliance with 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.--Nothing in 
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. 208. ENCOURAGEMENT OF PRIVATE ENTITIES.

    The Board may cause to be incorporated, or encourage the 
incorporation of, private non-profit 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. 209. 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. 210. RECORDKEEPING, REPORTS, AND AUDITS.

    (a) Recordkeeping.--
            (1) 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) 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 of its 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. In 
                addition, the Fund may study, or cause to be studied, 
                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.
                    (B) Consultation.--In the conduct of the study, the 
                Fund shall consult, or cause consultation with, the 
                Office of 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 
                Office of Thrift Supervision, the National Credit Union 
                Administration, community reinvestment, civil rights, 
                consumer and financial organizations, and such 
                representatives of agencies or other persons as the 
                Fund may determine.
                    (C) Reports.--Within 270 days after the date of 
                enactment of this title, the Fund shall report to the 
                President its initial findings and recommendations 
                regarding the matters set forth in subparagraph (A). 
                Thereafter, the Fund shall report its findings and 
                recommendations to the President with the annual report 
                required by paragraph (b)(1).
            (3) Investment, governance, and role of fund.--Six years 
        following the date of enactment of this title, the Fund, in 
        accordance with the procedures described in paragraphs (2)(A) 
        and (B), shall conduct a study evaluating the structure, 
        governance, and performance of the Fund. The study shall be 
        submitted to the President. Such study shall include an 
        evaluation of the overall performance of the Fund in meeting 
        the purposes of this title and any recommendations of the Fund 
        for restructuring the Board, altering procedures under which 
        the Fund is governed, the future role of the Fund in addressing 
        community development, and 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 that 
title shall be performed annually.

SEC. 211. 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 217 shall be deposited and accredited 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. 212. 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) Administrative Expenses.--The Fund may set aside up to 
$10,000,000 each fiscal year to pay administrative costs and expenses.

SEC. 213. CONFORMING AMENDMENT.

    Section 8E(a)(2) of the Inspector General Act of 1978 (5 U.S.C. 
app. 3, 8E(a)(2)) is amended by inserting ``the Community Development 
Banking and Financial Institutions Fund,'' immediately following ``the 
Commodity Futures Trading Commission.''.

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