[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3841 Reported in House (RH)]

                                                 Union Calendar No. 248

103d CONGRESS

  2d Session

                               H. R. 3841

                          [Report No. 103-448]

_______________________________________________________________________

                                 A BILL

To amend the Bank Holding Company Act of 1956, the Revised Statutes of 
the United States, and the Federal Deposit Insurance Act to provide for 
                   interstate banking and branching.

_______________________________________________________________________

                             March 22, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 248
103d CONGRESS
  2d Session
                                H. R. 3841

                          [Report No. 103-448]

To amend the Bank Holding Company Act of 1956, the Revised Statutes of 
the United States, and the Federal Deposit Insurance Act to provide for 
                   interstate banking and branching.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 1994

Mr. Neal of North Carolina (for himself, Mr. McCollum, Mr. LaFalce, Mr. 
  Vento, Mr. Schumer, Mr. Frank of Massachusetts, Mr. Kanjorski, Mr. 
Kennedy, Mr. Flake, Mr. Mfume, Mr. LaRocco, Mr. Orton, Mr. Klein, Mrs. 
   Maloney, Ms. Pryce of Ohio, Mr. Linder, Mr. Lazio, Mr. Bachus of 
  Alabama, Mrs. Roukema, Mr. McCandless, and Mr. King) introduced the 
following bill; which was referred to the Committee on Banking, Finance 
                           and Urban Affairs

                             March 22, 1994

                    Additional sponsor: Mr. Hinchey

                             March 22, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 10, 1994]

_______________________________________________________________________

                                 A BILL


 
To amend the Bank Holding Company Act of 1956, the Revised Statutes of 
the United States, and the Federal Deposit Insurance Act to provide for 
                   interstate banking and branching.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Interstate Banking 
Efficiency Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.

               TITLE I--INTERSTATE BANKING AND BRANCHING

Sec. 101. Interstate banking.
Sec. 102. Interstate branching by national banks.
Sec. 103. Interstate branching by State banks.
Sec. 104. Branching by foreign banks.
Sec. 105. Interstate consolidations.
Sec. 106. Branch closures.
Sec. 107. Prohibition against deposit production offices.
Sec. 108. Federal Reserve Board study on bank fees.
Sec. 109. Restatement of existing law.

                       TITLE II--CRA EVALUATIONS

Sec. 201. State-by-State CRA evaluations of depository institutions 
                            with interstate branches.

               TITLE I--INTERSTATE BANKING AND BRANCHING

SEC. 101. INTERSTATE BANKING.

    (a) Interstate Acquisitions.--Section 3(d) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1842(d)) is amended to read as follows:
    ``(d) Interstate Acquisitions.--
            ``(1) Approvals authorized.--
                    ``(A) In general.--Subject to paragraph (2), the 
                Board may approve an application under this section by 
                a bank holding company to acquire, directly or 
                indirectly, any voting shares of, interest in, or all 
                or substantially all of the assets of any additional 
                bank or any bank holding company located in any State 
                other than the home State of the applicant bank holding 
                company.
                    ``(B) Concentration limits.--
                            ``(i) In general.--The Board may not 
                        approve an application under subparagraph (A) 
                        if--
                                    ``(I) the applicant (including all 
                                insured depository institutions which 
                                are affiliates of the applicant) 
                                controls, or upon completion of the 
                                acquisition would control, more than 10 
                                percent of the total amount of insured 
                                depository institution deposits in the 
                                United States; or
                                    ``(II) the applicant (including all 
                                insured depository institutions which 
                                are affiliates of the applicant) 
                                controls, or upon completion of the 
                                acquisition would control, 30 percent 
                                or more of the total amount of insured 
                                depository institution deposits in the 
                                State in which the bank to be acquired 
                                is located.
                            ``(ii) Waiver by state.--A State may waive 
                        the application of clause (i)(II) to an 
                        acquisition in such State.
            ``(2) Applicability of state law to acquisitions.--
                    ``(A) Inapplicability of certain state laws to 
                acquisitions.--Subject to paragraph (3), any 
                acquisition described in paragraph (1)(A) which has 
                been approved under this section may be consummated 
                notwithstanding any law of any State that would 
                prohibit or otherwise limit such acquisition on the 
                basis of--
                            ``(i) the location or size of the acquiring 
                        company or any subsidiary of such company;
                            ``(ii) the number of bank subsidiaries of 
                        such company; or
                            ``(iii) any other factor that--
                                    ``(I) directly or indirectly, has 
                                the effect of prohibiting or limiting 
                                the acquisition of shares or control of 
                                a bank or bank holding company located 
                                in such State by an out-of-State bank 
                                holding company; and
                                    ``(II) is not applied with similar 
                                effect with respect to acquisitions of 
                                banks or bank holding companies located 
                                in such State by bank holding companies 
                                located in the State.
                    ``(B) Applicability of state law on the form of 
                acquisition.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this subsection and subject 
                        to clause (ii), any law of a host State which--
                                    ``(I) is in existence on the date 
                                of the enactment of the Interstate 
                                Banking Efficiency Act of 1994 or is 
                                enacted after such date; and
                                    ``(II) allows an out-of-State bank 
                                or bank holding company to establish a 
                                bank in the host State only by 
                                acquiring an existing bank in the host 
                                State,
                        shall apply with respect to the establishment 
                        or acquisition of a bank in the host State 
                        under this subsection.
                            ``(ii) Applicability of provisions relating 
                        to minimum period of existence of acquired 
                        bank.--In the case of any State law referred to 
                        in clause (i) which is enacted after the date 
                        of the enactment of the Interstate Banking 
                        Efficiency Act of 1994 and requires the bank to 
                        be acquired to have been in existence (as of 
                        the date of the transaction) for a period of 
                        time greater than 5 years, such law shall be 
                        applied under clause (i) by substituting `5-
                        year period' for such greater period.
            ``(3) Applicability of state law to interstate banking 
        operations.--
                    ``(A) State taxation authority not affected.--No 
                provision of this subsection shall be construed as 
                affecting the authority of any State or political 
                subdivision of any State to apply and administer any 
                tax or method of taxation to any bank, bank holding 
                company, or foreign bank, or any affiliate of any bank 
                or bank holding company, to the extent such tax or tax 
                method is otherwise permissible by or under the 
                Constitution of the United States of America or other 
                Federal law.
                    ``(B) Applicability of deposit caps and antitrust 
                laws.--No provision of this subsection shall be 
                construed as affecting--
                            ``(i) the authority of any State to limit 
                        the percentage of the total amount of insured 
                        depository institution deposits in the State 
                        which may be held or controlled by any bank to 
                        the extent the application of such limitation 
                        does not discriminate against out-of-State 
                        banks or bank holding companies; or
                            ``(ii) the applicability of the antitrust 
                        laws or any State law which is similar to the 
                        antitrust laws.
            ``(4) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Antitrust laws.--The term `antitrust laws'--
                            ``(i) has the same meaning as in subsection 
                        (a) of the 1st section of the Clayton Act; and
                            ``(ii) includes section 5 of the Federal 
                        Trade Commission Act to the extent such section 
                        5 relates to unfair methods of competition.
                    ``(B) Deposits.--The term `deposits' has the same 
                meaning as in section 3(l) of the Federal Deposit 
                Insurance Act.
                    ``(C) Home state.--The term `home State' means, 
                with respect to a bank holding company, the State in 
                which the total deposits of all banking subsidiaries of 
                such company were the largest on the later of July 1, 
                1966, or the date on which the company becomes a bank 
                holding company.
                    ``(D) Host state.--The term `host State' means, 
                with respect to a bank holding company acquiring or 
                establishing a bank in a State other than such 
                company's home State, the State in which the bank being 
                acquired or established is located.
                    ``(E) Insured depository institution.--The term 
                `insured depository institution' has the same meaning 
                as in section 3 of the Federal Deposit Insurance Act.
                    ``(F) Out-of-state bank holding company.--The term 
                `out-of State bank holding company' means, with respect 
                to any State, a bank holding company the home State of 
                which is another State.''.
    (b) Subsidiary Depository Institutions as Agents.--Section 18 of 
the Federal Deposit Insurance Act (12 U.S.C. 1828) by adding at the end 
the following new subsection:
    ``(q) Subsidiary Depository Institutions as Agents for Certain 
Affiliates.--
            ``(1) In general.--Any depository institution subsidiary of 
        a depository institution holding company may receive deposits, 
        renew time deposits, close loans, disburse proceeds of loans, 
        and receive payments on loans and other obligations as agent 
        for a depository institution affiliate located in another 
        State.
            ``(2) Depository institution acting as agent is not a 
        branch.--Notwithstanding any other provision of law, a 
        depository institution acting as agent in accordance with 
        paragraph (1) for a depository institution affiliate shall not 
        be considered to be a branch of the affiliate.
            ``(3) Activities as agent.--Paragraph (1) shall not be 
        construed as authorizing a State depository institution to 
        engage in activities as an agent in which such institution is 
        not authorized to engage as principal under the laws of the 
        State in which such institution acts as agent.
            ``(4) Plan on meeting local credit needs.--
                    ``(A) In general.--If a depository institution 
                holding company controls any depository institution 
                which acts as agent for another depository institution 
                subsidiary of such company pursuant to paragraph (1), 
                the depository institution holding company shall file a 
                local credit needs plan with the appropriate Federal 
                banking agency for the subsidiary which acts as agent 
                before the date on which the subsidiary begins acting 
                as agent.
                    ``(B) Local credit needs plan defined.--The term 
                `local credit needs plan' means a plan for meeting 
                local credit needs in the communities served by any 
                depository institution subsidiary (of a bank holding 
                company) which acts as agent pursuant to paragraph (1), 
                which includes an estimate of the extent to which the 
                amount of the anticipated savings attributable to the 
                use of depository institution subsidiaries as agents 
                under this subsection will be available to meet such 
                local credit needs.''.
    (c) Effective Date.--The amendment made by this section shall apply 
after the end of the 12-month period beginning on the date of the 
enactment of this Act.

SEC. 102. INTERSTATE BRANCHING BY NATIONAL BANKS.

    Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended--
            (1) by redesignating subsections (d) through (h) as 
        subsections (g) through (k), respectively;
            (2) by inserting after subsection (c) the following new 
        subsections:
    ``(d) Interstate Branching by National Banks.--
            ``(1) Approvals of acquisition of existing branches 
        authorized.--Subject to paragraphs (3) and (4) and subsections 
        (e) and (f), after the end of the 3-year period beginning on 
        the date of the enactment of the Interstate Banking Efficiency 
        Act of 1994, the Comptroller of the Currency may approve an 
        application to allow a national bank to--
                    ``(A) acquire a bank or branch located outside the 
                home State of such bank in a State in which the bank 
                does not maintain a branch; and
                    ``(B) operate such bank or branch (including any 
                branch of such bank) as a branch,
        if the conditions established in paragraph (6) are met.
            ``(2) State `opt-in' election to permit interstate 
        branching through de novo branches.--Subject to subsections (e) 
        and (f), the Comptroller of the Currency may approve an 
        application by a national bank to establish and operate a de 
        novo branch outside the home State of such bank in a State in 
        which the bank does not maintain a branch if--
                    ``(A) there is in effect in the host State a law 
                that--
                            ``(i) expressly permits all out-of-State 
                        banks to establish de novo branches in such 
                        State; and
                            ``(ii) applies equally to national and 
                        State banks; and
                    ``(B) the conditions established in paragraph (6) 
                are met.
            ``(3) State `opt-out' election to prohibit interstate 
        branching by acquisition of existing banks.--
                    ``(A) In general.--An application by a national 
                bank to establish a branch in a State other than the 
                home State of such bank through the acquisition of an 
                existing bank or branch in the host State may not be 
                approved by the Comptroller of the Currency if there is 
                in effect in the host State a law which--
                            ``(i) expressly prohibits all out-of-State 
                        banks from acquiring a branch located in such 
                        State through the acquisition of an existing 
                        bank or branch in the host State;
                            ``(ii) was enacted during the period 
                        beginning on January 1, 1990, and ending 3 
                        years after the date of the enactment of the 
                        Interstate Banking Efficiency Act of 1994; and
                            ``(iii) applies equally to national and 
                        State banks.
                    ``(B) Effect of prohibition.--A national bank whose 
                home State has in effect a prohibition described in 
                subparagraph (A) may not acquire or establish, under 
                this subsection, a branch located in any other State.
            ``(4) State laws requiring minimum period of existence for 
        acquisitions by out-of-state banks.--
                    ``(A) Laws enacted before interstate banking act.--
                In the case of a State in which a law is in effect 
                which--
                            ``(i) allows an out-of-State bank or bank 
                        holding company to establish a bank in the host 
                        State only by acquiring a bank or branch (in 
                        the host State) which has been in existence for 
                        not less than the minimum time period specified 
                        in such law; and
                            ``(ii) took effect on or before the date of 
                        the enactment of the Interstate Banking 
                        Efficiency Act of 1994,
                an out-of-State national bank which has no branch in 
                such State may establish a branch in the State under 
                this subsection only by acquiring a bank or branch 
                which has been in existence for not less than the 
                minimum time period specified in such law.
                    ``(B) Subsequent enactments.--In the case of a 
                State in which a law is in effect which--
                            ``(i) allows an out-of-State bank or bank 
                        holding company to establish a branch in the 
                        host State only by acquiring a bank or branch 
                        (in the host State) which has been in existence 
                        for not less than the minimum time period 
                        specified in such law; and
                            ``(ii) took effect after the date of the 
                        enactment of the Interstate Banking Efficiency 
                        Act of 1994,
                an out-of-State national bank which has no branch in 
                such State may establish a branch in the State under 
                this subsection only by acquiring a bank or branch 
                which has been in existence for not less than the 
                lesser of the minimum time period specified in such law 
                or 5 years.
            ``(5) Early approval authorized if state law permits.--The 
        Comptroller of the Currency may approve an application under 
        paragraph (1) before the expiration of the 3-year period 
        described in such paragraph if the State in which the branch is 
        or will be located has in effect a law which expressly permits 
        interstate branching by all national and State banks.
            ``(6) Conditions applicable to the establishment or 
        acquisition of interstate branches.--The Comptroller of the 
        Currency may approve an application under paragraph (1) or (2) 
        by a national bank to acquire or establish a branch only if--
                    ``(A) the national bank is adequately capitalized 
                (as defined under section 38 of the Federal Deposit 
                Insurance Act) as of the date the application is filed; 
                and
                    ``(B) the Comptroller of the Currency determines 
                that--
                            ``(i) the national bank will continue to be 
                        adequately capitalized upon the consummation of 
                        the acquisition or establishment of the branch; 
                        and
                            ``(ii) on the basis of an evaluation 
                        conducted by the Comptroller, the management of 
                        the bank has the necessary management skills to 
                        manage the operations of the bank upon the 
                        consummation of the acquisition or 
                        establishment of the branch.
    ``(e) Provisions Applicable to Application and Approval Process.--
            ``(1) Consultation with state bank supervisor.--In 
        determining whether to grant approval of an application under 
        subsection (d), the Comptroller of the Currency shall consider 
        the views of any appropriate State bank supervisor of the bank 
        which submits the application regarding the bank's compliance 
        with applicable State community reinvestment laws.
            ``(2) Compliance with state filing requirements.--
                    ``(A) In general.--An out-of-State national bank 
                that files an application under subsection (d) to 
                acquire or establish a branch within a host State 
                shall--
                            ``(i) comply with any filing requirement of 
                        the host State that--
                                    ``(I) is not discriminatory in 
                                nature; and
                                    ``(II) is similar in effect to any 
                                requirement imposed by the host State 
                                on a nonbanking corporation from 
                                another State that seeks to engage in 
                                business in the host State; and
                            ``(ii) submit a copy of the application to 
                        the State bank supervisor of the host State.
                    ``(B) Penalty for failure to comply.--The 
                Comptroller of the Currency may not approve an 
                application under subsection (d) by an out-of-State 
                national bank which materially fails to comply with 
                subparagraph (A) with respect to such application.
            ``(3) Concentration limits.--
                    ``(A) In general.--The Comptroller of the Currency 
                may not approve an application by a bank under 
                subsection (d) if--
                            ``(i) the bank (including all insured 
                        depository institutions which are affiliates of 
                        the bank) controls, or upon completion of the 
                        acquisition would control, more than 10 percent 
                        of the total amount of insured depository 
                        institution deposits in the United States; or
                            ``(ii) the bank (including all insured 
                        depository institutions which are affiliates of 
                        the bank) controls, or upon completion of the 
                        acquisition would control, 30 percent or more 
                        of the total amount of insured depository 
                        institution deposits in the State in which the 
                        proposed branch would be located.
                    ``(B) Not applicable to de novo out-of-state 
                branches.--Subparagraph (A) shall not apply to the 
                establishment of a de novo branch outside the home 
                State of a national bank.
                    ``(C) Waiver by state.--A State may waive the 
                application of subparagraph (A)(ii) to the acquisition 
                of banks or branches in such State.
            ``(4) Consideration of bank affiliates.--In determining 
        whether to grant approval of an application under subsection 
        (d) with respect to a proposed branch by a national bank which, 
        as of the date of the application, does not have a branch in 
        the host State (of the proposed branch), the Comptroller of the 
        Currency shall take into account the most recent written 
        evaluation under section 807 of the Community Reinvestment Act 
        of 1977 of each bank affiliate of the bank which submits the 
        application.
            ``(5) Definitions.--For purposes of this subsection and 
        subsections (d) and (f) the following definitions shall apply:
                    ``(A) Affiliate.--The term `affiliate' has the same 
                meaning as in section 2(k) of the Bank Holding Company 
                Act of 1956.
                    ``(B) Antitrust laws.--The term `antitrust laws'--
                            ``(i) has the same meaning as in subsection 
                        (a) of the 1st section of the Clayton Act; and
                            ``(ii) includes section 5 of the Federal 
                        Trade Commission Act to the extent such section 
                        5 relates to unfair methods of competition.
                    ``(C) De novo branch.--The term `de novo branch' 
                means a branch of a national bank which--
                            ``(i) is originally established by the 
                        national bank as a branch; and
                            ``(ii) does not become a branch of such 
                        bank as a result of--
                                    ``(I) the acquisition by the bank 
                                of an insured depository institution or 
                                a branch of an insured depository 
                                institution; or
                                    ``(II) the conversion, merger, or 
                                consolidation of any such institution 
                                or branch.
                    ``(D) Deposits.--The term `deposits' has the same 
                meaning as in section 3(l) of the Federal Deposit 
                Insurance Act.
                    ``(E) Home state.--The term `home State' means, 
                with respect to a national bank, the State in which the 
                main office of the bank is located.
                    ``(F) Host state.--The term `host State' means any 
                State in which a national bank establishes or maintains 
                a branch other than the home State of such bank.
                    ``(G) Insured depository institution.--The term 
                `insured depository institution' has the same meaning 
                as in section 3(c)(2) of the Federal Deposit Insurance 
                Act.
                    ``(H) Out-of-state bank.--The term `out-of-State 
                bank' means, with respect to any State, a bank whose 
                home State is another State.
                    ``(I) Out-of-state bank holding company.--The term 
                `out-of-State bank holding company' means, with respect 
                to any State, a bank holding company whose home State 
                (as defined in section 3(d)(4)(D) of the Bank Holding 
                Company Act of 1956) is another State.
                    ``(J) State bank.--The term `State bank' has the 
                same meaning as in section 3(a)(2) of the Federal 
                Deposit Insurance Act.
                    ``(K) State bank supervisor.--The term `State bank 
                supervisor' has the same meaning as in section 3(r) of 
                the Federal Deposit Insurance Act.
    ``(f) Applicability of State and Federal Law to Interstate 
Branching Operations.--
            ``(1) Certain state laws applicable to national bank 
        branches.--
                    ``(A) In general.--Any branch of an out-of-State 
                national bank shall be subject to the laws of the host 
                State with respect to intrastate branching, consumer 
                protection, fair lending, and community reinvestment as 
                if the branch were a branch of a bank chartered by that 
                State, except to the extent any such State law is 
                preempted by Federal law regarding the same subject.
                    ``(B) Prohibition on discriminatory effect.--
                Notwithstanding subparagraph (A), a branch of an out-
                of-State national bank shall not be subject to a State 
                law described in such subparagraph to the extent the 
                Comptroller of the Currency determines that the 
                application of the law has, or would have, a 
                discriminatory effect on the branch in comparison with 
                the effect the application of such law has with respect 
                to branches of a bank chartered by the State.
                    ``(C) Enforcement of applicable state laws.--The 
                provisions of any State law to which a branch of a 
                national bank is subject under this paragraph shall be 
                enforced, with respect to such branch, by the 
                Comptroller of the Currency.
            ``(2) Treatment of branch as bank.--All laws of a host 
        State, other than the laws described in paragraph (1) or laws 
        pertaining to the application or administration of any tax or 
        method of taxation, shall apply to a branch (in such State) of 
        an out-of-State national bank in the same manner and to the 
        same extent such laws would apply if the branch were a national 
        bank located in that State.
            ``(3) State taxation authority not affected.--No provision 
        of this subsection or subsection (d) or (e) shall be construed 
        as affecting the authority of any State or political 
        subdivision of any State to apply and administer any tax or 
        method of taxation to any national bank, including any branch 
        of a national bank, any bank holding company which controls a 
        national bank, or any affiliate of any such bank or bank 
        holding company to the extent such tax or tax method is 
        otherwise permissible by or under the Constitution of the 
        United States of America or other Federal law.
            ``(4) State-imposed notice requirements.--A host State may 
        impose any notification or reporting requirement on a branch 
        established or acquired under subsection (d) if the 
        requirement--
                    ``(A) does not discriminate against out-of-State 
                banks or bank holding companies; and
                    ``(B) is not preempted by any Federal law regarding 
                the same subject.
            ``(5) Applicability of deposit caps and antitrust laws.--No 
        provision of this subsection or subsection (d) or (e) shall be 
        construed as affecting--
                    ``(A) the authority of any State to limit the 
                percentage of the total amount of insured depository 
                institution deposits in the State which may be held or 
                controlled by any bank (including all insured 
                depository institutions which are affiliates of the 
                bank) to the extent the application of such limitation 
                does not discriminate against out-of-State banks or 
                bank holding companies; or
                    ``(B) the applicability of the antitrust laws or 
                any State law which is similar to the antitrust 
                laws.''; and
            (3) in subsection (i) (as so redesignated by the amendment 
        made by paragraph (1) of this section), by striking ``The 
        term'' and inserting ``Branch.--Except as provided in section 
        18(q) of the Federal Deposit Insurance Act, the term''.

SEC. 103. INTERSTATE BRANCHING BY STATE BANKS.

    (a) In General.--The Federal Deposit Insurance Act (12 U.S.C. 1811 
et seq.) is amended by adding at the end the following new section:

``SEC. 44. STATE BANK BRANCHES.

    ``(a) Consent of Corporation.--
            ``(1) Establishment of branches.--No State nonmember 
        insured bank (except a District bank) may establish and operate 
        any new domestic branch without the prior written consent of 
        the Corporation.
            ``(2) Change of location of state bank offices and 
        branches.--No State nonmember insured bank (except a District 
        bank) may move the main office or any domestic branch of such 
        bank from 1 location to another without the prior written 
        consent of the Corporation.
            ``(3) Change of location of insured branch of foreign 
        bank.--No foreign bank may move any insured branch from 1 
        location to another without the prior written consent of the 
        Corporation.
            ``(4) Factors to be considered.--The Corporation shall 
        consider the factors enumerated in section 6 in making any 
        determination under this subsection.
    ``(b) Establishment of Foreign Branches.--
            ``(1) In general.--No State nonmember insured bank shall 
        establish or operate any foreign branch without the prior 
        written consent of the Corporation.
            ``(2) Conditions and regulations.--The Corporation may 
        establish such conditions and prescribe such regulations for 
        the establishment and operation of foreign branches of State 
        nonmember banks as the Corporation may determine to be 
        appropriate.
    ``(c) Interstate Branching by State Banks.--
            ``(1) Approvals of acquisition of existing branches 
        authorized.--Subject to paragraphs (3) and (4) and subsections 
        (d) and (e), after the end of the 3-year period beginning on 
        the date of the enactment of the Interstate Banking Efficiency 
        Act of 1994, the appropriate Federal banking agency may approve 
        an application under this section to allow an insured State 
        bank to--
                    ``(A) acquire a bank or branch located outside the 
                home State of such bank in a State in which the bank 
                does not maintain a branch; and
                    ``(B) operate such bank or branch (including any 
                branch of such bank) as a branch,
        if the conditions established in paragraph (6) are met.
            ``(2) State `opt-in' election to permit interstate 
        branching through de novo branches.--Subject to subsections (d) 
        and (e), the appropriate Federal banking agency may approve an 
        application by a State bank to establish and operate a de novo 
        branch outside the home State of such bank in a State in which 
        the bank does not maintain a branch if--
                    ``(A) there is in effect in the host State a law 
                that--
                            ``(i) expressly permits all out-of-State 
                        banks to establish de novo branches in such 
                        State; and
                            ``(ii) applies equally to national and 
                        State banks; and
                    ``(B) the conditions established in paragraph (6) 
                are met.
            ``(3) State `opt-out' election to prohibit interstate 
        branching by acquisition of existing banks.--
                    ``(A) In general.--An application by an insured 
                State bank to establish a branch in a State other than 
                the home State of such bank through the acquisition of 
                an existing bank or branch in the host State may not be 
                approved by the appropriate Federal banking agency if 
                there is in effect in the host State a law which--
                            ``(i) expressly prohibits all out-of-State 
                        banks from acquiring a branch located in such 
                        State through the acquisition of an existing 
                        bank or branch in the host State;
                            ``(ii) was enacted during the period 
                        beginning on January 1, 1990, and ending 3 
                        years after the date of the enactment of the 
                        Interstate Banking Efficiency Act of 1994; and
                            ``(iii) applies equally to national and 
                        State banks.
                    ``(B) Effect of prohibition.--An insured State bank 
                whose home State has in effect a prohibition described 
                in subparagraph (A) may not acquire or establish, under 
                subsection (c), a branch located in any other State.
            ``(4) State laws requiring minimum period of existence for 
        acquisitions by out-of-state banks.--
                    ``(A) Laws enacted before interstate banking act.--
                In the case of a State in which a law is in effect 
                which--
                            ``(i) allows an out-of-State bank or bank 
                        holding company to establish a bank in the host 
                        State only by acquiring a bank or branch (in 
                        the host State) which has been in existence for 
                        not less than the minimum time period specified 
                        in such law; and
                            ``(ii) took effect on or before the date of 
                        the enactment of the Interstate Banking 
                        Efficiency Act of 1994,
                an out-of-State insured State bank which has no branch 
                in such State may establish a branch in the State under 
                this subsection only by acquiring a bank or branch 
                which has been in existence for not less than the 
                minimum time period specified in such law.
                    ``(B) Subsequent enactments.--In the case of a 
                State in which a law is in effect which--
                            ``(i) allows an out-of-State bank or bank 
                        holding company to establish a branch in the 
                        host State only by acquiring a bank or branch 
                        (in the host State) which has been in existence 
                        for not less than the minimum time period 
                        specified in such law; and
                            ``(ii) took effect after the date of the 
                        enactment of the Interstate Banking Efficiency 
                        Act of 1994,
                an out-of-State insured State bank which has no branch 
                in such State may establish a branch in the State under 
                this subsection only by acquiring a bank or branch 
                which has been in existence for not less than the 
                lesser of the minimum time period specified in such law 
                or 5 years.
            ``(5) Early approval authorized if state law permits.--The 
        appropriate Federal banking agency may approve an application 
        under paragraph (1) before the expiration of the 3-year period 
        described in such paragraph if the State in which the branch is 
        or will be located has in effect a law which expressly permits 
        interstate branching by all national and State banks.
            ``(6) Conditions applicable to the establishment or 
        acquisition of interstate branches.--The appropriate Federal 
        banking agency may approve an application under paragraph (1) 
        or (2) by an insured State bank to acquire or establish a 
        branch only if--
                    ``(A) the bank is adequately capitalized (as 
                defined under section 38) as of the date the 
                application is filed;
                    ``(B) the bank is authorized to establish branches 
                in other States under the law of the home State of the 
                bank; and
                    ``(C) the appropriate Federal banking agency 
                determines that--
                            ``(i) the bank will continue to be 
                        adequately capitalized upon the consummation of 
                        the acquisition or establishment of the branch; 
                        and
                            ``(ii) on the basis of an evaluation 
                        conducted by the agency, the management of the 
                        bank has the necessary management skills to 
                        manage the operations of the bank upon the 
                        consummation of the acquisition or 
                        establishment of the branch.
    ``(d) Provisions Applicable to Application and Approval Process.--
            ``(1) Consultation with state bank supervisor.--In 
        determining whether to grant approval of an application under 
        subsection (c), the appropriate Federal banking agency shall 
        consider the views of any appropriate State bank supervisor of 
        the bank which submits the application regarding the bank's 
        compliance with applicable State community reinvestment laws.
            ``(2) Compliance with state filing requirements.--
                    ``(A) In general.--An out-of-State insured State 
                bank that files an application under subsection (c) to 
                acquire or establish a branch within a host State 
                shall--
                            ``(i) comply with any filing requirement of 
                        the host State that--
                                    ``(I) is not discriminatory in 
                                nature; and
                                    ``(II) is similar in effect to a 
                                requirement imposed by the host State 
                                on a nonbanking corporation from 
                                another State that seeks to engage in 
                                business in the host State; and
                            ``(ii) submit a copy of the application to 
                        the State bank supervisor of the host State.
                    ``(B) Penalty for failure to comply.--The 
                appropriate Federal banking agency may not approve an 
                application under subsection (c) by an insured State 
                bank which materially fails to comply with subparagraph 
                (A) with respect to such application.
            ``(3) Concentration limits.--
                    ``(A) In general.--The appropriate Federal banking 
                agency may not approve an application by a bank under 
                subsection (c) if--
                            ``(i) the bank (including all insured 
                        depository institutions which are affiliates of 
                        the bank) controls, or upon completion of the 
                        acquisition would control, more than 10 percent 
                        of the total amount of insured depository 
                        institution deposits in the United States; or
                            ``(ii) the bank (including all insured 
                        depository institutions which are affiliates of 
                        the bank) controls, or upon completion of the 
                        acquisition would control, 30 percent or more 
                        of the total amount of insured depository 
                        institution deposits in the State in which the 
                        proposed branch would be located.
                    ``(B) Not applicable to de novo out-of-state 
                branches.--Subparagraph (A) shall not apply to the 
                establishment of a de novo branch outside the home 
                State of an insured State bank.
                    ``(C) Waiver by state.--A State may waive the 
                application of subparagraph (A)(ii) to the acquisition 
                of banks or branches in such State.
            ``(4) Consideration of bank affiliates.--In determining 
        whether to grant approval of an application under subsection 
        (c) with respect to a proposed branch by an insured State bank 
        which, as of the date of the application, does not have a 
        branch in the host State (of the proposed branch), the 
        appropriate Federal banking agency shall take into account the 
        most recent written evaluation under section 807 of the 
        Community Reinvestment Act of 1977 of each bank affiliate of 
        the bank which submits the application.
    ``(e) Applicability of State and Federal Law to Interstate 
Branching Operations.--
            ``(1) State laws applicable to branches of out-of-state 
        banks.--
                    ``(A) In general.--Subject to subsection (d), any 
                branch of an out-of-State insured State bank shall be 
                subject to the laws of the host State as if such branch 
                were a branch of a bank chartered by that State.
                    ``(B) Activities of branches.--An insured State 
                bank that establishes a branch in a host State may not 
                conduct any activity at such branch that is not 
                permissible for a bank chartered by the host State.
                    ``(C) Reservation of certain rights to states.--No 
                provision of this subsection or subsection (c) or (d) 
                shall be construed as limiting in any way the right of 
                a State to--
                            ``(i) determine the authority of State 
                        banks chartered in that State to establish and 
                        maintain branches; or
                            ``(ii) supervise, regulate, and examine 
                        State banks chartered by that State.
            ``(2) State taxation authority not affected.--No provision 
        of this subsection or subsection (c) or (d) shall be construed 
        as affecting the authority of any State or political 
        subdivision of any State to apply and administer any tax or 
        method of taxation to any State bank, including any branch of a 
        State bank, any bank holding company which controls any State 
        bank, or any affiliate of any such bank or bank holding company 
        to the extent such tax or tax method is otherwise permissible 
        by or under the Constitution of the United States of America or 
        other Federal law.
            ``(3) State-imposed notice requirements.--A host State may 
        impose any notification or reporting requirement on a branch 
        established or acquired under subsection (c) if the 
        requirement--
                    ``(A) does not discriminate against out-of-State 
                banks or bank holding companies; and
                    ``(B) is not preempted by any Federal law regarding 
                the same subject.
            ``(4) Applicability of deposit caps and antitrust laws.--No 
        provision of this subsection or subsection (c) or (d) shall be 
        construed as affecting--
                    ``(A) the authority of any State to limit the 
                percentage of the total amount of insured depository 
                institution deposits in the State which may be held or 
                controlled by any bank (including all insured 
                depository institutions which are affiliates of the 
                bank) to the extent the application of such limitation 
                does not discriminate against out-of-State banks or 
                bank holding companies; or
                    ``(B) the applicability of the antitrust laws or 
                any State law which is similar to the antitrust laws.
    ``(f) Coordination of Examination Authority.--
            ``(1) In general.--A host State bank supervisor may examine 
        a branch operated in the host State by an out-of-State insured 
        State bank to--
                    ``(A) determine compliance with host State laws 
                regarding banking, community reinvestment, fair 
                lending, consumer protection, and permissible 
                activities; and
                    ``(B) ensure that the activities of the branch do 
                not constitute a significant risk to the safe and sound 
                operation of the branch.
            ``(2) Enforcement.--If the State bank supervisor of a host 
        State described in paragraph (1) determines that there is a 
        violation of host State law concerning the activities being 
        conducted by a branch operated in such State by an out-of-State 
        insured State bank or that the branch is being operated in an 
        unsafe and unsound manner, such host State bank supervisor or, 
        to the extent authorized by the law of the host State, a State 
        law enforcement officer may undertake such enforcement actions 
        or proceedings as would be permitted under host State law if 
        the branch were a bank chartered by the host State.
            ``(3) Cooperative agreement.--The State bank supervisors of 
        1 or more States may enter into cooperative agreements to 
        facilitate State regulatory supervision of State banks and 
        branches, including cooperative agreements relating to the 
        coordination of examinations and joint participation in 
        examinations.
            ``(4) Federal regulatory authority.--No provision of this 
        section shall be construed as limiting the authority of any 
        Federal banking agency to examine any bank or branch of a bank 
        for which the agency is the appropriate Federal banking agency.
    ``(g) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Antitrust laws.--The term `antitrust laws'--
                    ``(A) has the same meaning as in subsection (a) of 
                the 1st section of the Clayton Act; and
                    ``(B) includes section 5 of the Federal Trade 
                Commission Act to the extent such section 5 relates to 
                unfair methods of competition.
            ``(2) De novo branch.--The term `de novo branch' means a 
        branch of a bank which--
                    ``(A) is originally established by the bank as a 
                branch; and
                    ``(B) does not become a branch of such bank as a 
                result of--
                            ``(i) the acquisition by the bank of an 
                        insured depository institution or a branch of 
                        an insured depository institution; or
                            ``(ii) the conversion, merger, or 
                        consolidation of any such institution or 
                        branch.
            ``(3) Home state.--The term `home State' means, with 
        respect to a State bank, the State by whom the bank is 
        chartered.
            ``(4) Host state.--The term `host State' means the State in 
        which a bank establishes or maintains a branch other than the 
        home State of the bank.
            ``(5) Out-of-state bank.--The term `out-of-State bank' 
        means, with respect to any State, a bank whose home State is 
        another State.
            ``(6) Out-of-state bank holding company.--The term `out-of-
        State bank' means, with respect to any State, a bank holding 
        company whose home State (as defined in section 3(d)(4)(D) of 
        the Bank Holding Company Act of 1956) is another State.''.
    (b) Technical and Conforming Amendment.--Section 3(o) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(o)) is amended to read as 
follows:
    ``(o) Definitions Relating to Domestic and Foreign Branches.--
            ``(1) Branch.--The term `branch' means a domestic branch or 
        a foreign branch, except when such term is used in connection 
        with the term `Federal branch' or `insured branch'.
            ``(2) Domestic branch.--The term `domestic branch' includes 
        any branch bank, branch office, branch agency, additional 
        office, or any branch located in any State at which deposits 
        are received, checks are paid, or money is lent.
            ``(3) Foreign branch.--The term `foreign branch' means any 
        office or place at which banking operations are conducted and 
        which is not located in any State.''.

SEC. 104. BRANCHING BY FOREIGN BANKS.

    (a) In General.--Section 5(a) of the International Banking Act of 
1978 (12 U.S.C. 3103(a)) is amended to read as follows:
    ``(a) Interstate Branching and Agency Operations.--
            ``(1) Federal branch or agency.--Subject to the provisions 
        of this Act and with the prior written approval by the Board 
        and the Comptroller of the Currency of an application, a 
        foreign bank may establish and operate a Federal branch or 
        agency in any State outside the home State of such foreign bank 
        to the extent that the establishment and operation of such 
        branch would be permitted under section 5155 of the Revised 
        Statutes if the foreign bank were a national bank whose home 
        State (as defined in subsection (e)(5) of such section) is the 
        same State as the home State of the foreign bank.
            ``(2) State branch or agency.--Subject to the provisions of 
        this Act and with the prior written approval by the Board and 
        the appropriate State bank supervisor of an application, a 
        foreign bank may establish and operate a State branch or agency 
        in any State outside the home State of such foreign bank to the 
        extent that such establishment and operation would be permitted 
        under section 44 of the Federal Deposit Insurance Act if the 
        foreign bank were a State bank whose home State (as defined in 
        subsection (g) of such section) is the same State as the home 
        State of the foreign bank.
            ``(3) Criteria for determination.--In approving an 
        application under paragraph (1) or (2), the Board and (in the 
        case of an application under paragraph (1)) the Comptroller of 
        the Currency--
                    ``(A) shall apply the standards applicable to the 
                establishment of a foreign bank office in the United 
                States under section 7(d); and
                    ``(B) may not approve an application unless the 
                Board and (in the case of an application under 
                paragraph (1)) the Comptroller of the Currency--
                            ``(i) determine that the foreign bank's 
                        financial resources, including the capital 
                        level of the bank, are equivalent to those 
                        required for a domestic bank to be approved for 
                        branching under section 5155 of the Revised 
                        Statutes and section 44 of the Federal Deposit 
                        Insurance Act; and
                            ``(ii) consult with the Secretary of the 
                        Treasury regarding capital equivalency.
            ``(4) Requirement for a separate subsidiary.--If the Board 
        or the Comptroller of the Currency, taking into account 
        differing regulatory or accounting standards, finds that 
        adherence by a foreign bank to capital requirements equivalent 
        to those imposed under section 5155 of the Revised Statutes and 
        section 44 of the Federal Deposit Insurance Act could be 
        verified only if the banking activities of such bank in the 
        United States are carried out in a domestic banking subsidiary 
        within the United States, the Board and the Comptroller of the 
        Currency may approve an application under paragraph (1) subject 
        to a requirement that the foreign bank or company controlling 
        the foreign bank establish a domestic banking subsidiary in the 
        United States.
            ``(5) Additional authority for interstate branches and 
        agencies of foreign banks.--Notwithstanding paragraphs (1) and 
        (2), a foreign bank may, with the approval of the Comptroller 
        of the Currency, establish and operate a Federal branch or 
        Federal agency or, with the approval of the Board and the 
        appropriate State bank supervisor, a State branch or State 
        agency in any State outside the foreign bank's home State if--
                    ``(A) the establishment and operation of a branch 
                or agency is expressly permitted by the State in which 
                the branch or agency is to be established; and
                    ``(B) in the case of a Federal or State branch, the 
                branch receives only such deposits as would be 
                permissible for a corporation organized under section 
                25A of the Federal Reserve Act.''.
    (b) Continued Authority for Limited Branches, Agencies, or 
Commercial Lending Companies.--Section 5(b) of the International 
Banking Act of 1978 (12 U.S.C. 3103(b)) is amended by adding at the end 
the following new sentence: ``Notwithstanding subsection (a), a foreign 
bank may continue to operate, after the enactment of the Interstate 
Banking Efficiency Act of 1994, any Federal branch, State branch, 
Federal agency, State agency, or commercial lending company subsidiary 
which such bank was operating on the day before the date of the 
enactment of such Act to the extent the branch, agency, or subsidiary 
continues, after the enactment of such Act, to engage in operations 
which were lawful under the laws in effect on the day before such 
date.''.
    (c) Clarification of Branching Rules in the Case of a Foreign Bank 
With a Domestic Bank Subsidiary.--Section 5 of the International 
Banking Act of 1978 (12 U.S.C. 3103) is amended by adding at the end 
the following new subsection:
    ``(d) Clarification of Branching Rules in the Case of a Foreign 
Bank With a Domestic Bank Subsidiary.--In the case of a foreign bank 
that has a domestic bank subsidiary within the United States--
            ``(1) the fact that such bank controls a domestic bank 
        shall not affect the authority of the foreign bank to establish 
        Federal and State branches or agencies to the extent permitted 
        under subsection (a); and
            ``(2) the fact that the domestic bank is controlled by a 
        foreign bank which has Federal or State branches or agencies in 
        States other than the home State of such domestic bank shall 
        not affect the authority of the domestic bank to establish 
        branches outside the home State of the domestic bank to the 
        extent permitted under section 5155(d) of the Revised Statutes 
        or section 44 of the Federal Deposit Insurance Act, as the case 
        may be.''.
    (d) Home State Determinations.--Section 5(c) of the International 
Banking Act of 1978 (12 U.S.C. 3103(c)) is amended to read as follows:
    ``(c) Determination of Home State of Foreign Bank.--For the 
purposes of this section--
            ``(1) in the case of a foreign bank that has any branch, 
        agency, subsidiary commercial lending company, or subsidiary 
        bank in more than 1 State, the home State of the foreign bank 
        is the 1 State of such States which is selected by the foreign 
        bank or, in default of any such selection, by the Board; and
            ``(2) in the case of a foreign bank that does not have a 
        branch, agency, subsidiary commercial lending company, or 
        subsidiary bank in more than 1 State, the home State of the 
        foreign bank is the State in which the foreign bank has a 
        branch, agency, subsidiary commercial lending company, or 
        subsidiary bank.''.

SEC. 105. INTERSTATE CONSOLIDATIONS.

    Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(d)) is amended to read as follows:
    ``(d) Interstate Consolidations.--
            ``(1) Consolidations authorized.--
                    ``(A) In general.--Except as provided in section 
                3(d)(1)(B) of the Bank Holding Company Act of 1956 and 
                notwithstanding any other provision of Federal law or 
                any provision of State law (other than a law referred 
                to in subparagraph (B)), a bank holding company which 
                has bank subsidiaries in more than 1 State may, with 
                the prior written approval by the responsible agency 
                (as determined in accordance with section 18(c)(2) of 
                the Federal Deposit Insurance Act) of an application 
                and subject to the requirements of subsection (c), 
                combine 2 or more of such banks into a single bank by 
                means of merger, consolidation, or other similar 
                transaction in accordance with such subsection after 
                the end of the 18-month period beginning on the date of 
                the enactment of the Interstate Banking Efficiency Act 
                of 1994.
                    ``(B) Exception for states which prohibit the 
                acquisition of a branch by any out-of-state bank.--No 
                bank which is located in a State in which a law 
                described in section 5155(d)(3)(A) of the Revised 
                Statutes of the United States or section 44(c)(3)(A) is 
                in effect may be a party to a merger, consolidation, or 
                other similar transaction under subparagraph (A) with 
                any other bank affiliate of such bank.
                    ``(C) Exception for certain banks acquired during 
                transition period.--No bank subsidiary of a bank 
                holding company, or any branch of any such bank--
                            ``(i) control of which was acquired, 
                        directly or indirectly, by such company after 
                        the end of the 18-month period beginning on the 
                        date of the enactment of the Interstate Banking 
                        Efficiency Act of 1994; and
                            ``(ii) which is located in a State in which 
                        the company did not control any bank or branch 
                        as of the end of such 18-month period,
                may be a party to a merger, consolidation, or other 
                similar transaction under subparagraph (A) with any 
                other bank affiliate of such bank before the end of the 
                3-year period beginning on such date of enactment, 
                unless the State in which the bank or branch is located 
                is a State referred to in section 5155(d)(5) of the 
                Revised Statutes of the United States or section 
                44(c)(5).
            ``(2) Effect of state prohibition on branching.--If a 
        branch which results from a transaction under paragraph (1) is 
        located in a State in which a law--
                    ``(A) takes effect after the consummation of the 
                transaction;
                    ``(B) is enacted during the period beginning on 
                January 1, 1990, and ending 3 years after the date of 
                the enactment of the Interstate Banking Efficiency Act 
                of 1994;
                    ``(C) expressly prohibits all out-of-State banks 
                from acquiring a branch located in such State through 
                the acquisition of an existing bank in the host State; 
                and
                    ``(D) applies equally to national and State banks,
        the branch shall be promptly converted back into a bank as the 
        bank existed before such transaction, in accordance with 
        regulations of the Federal banking agency or State bank 
        supervisor which had jurisdiction over the bank which was 
        converted into a branch.
            ``(3) Applicability of state and federal law to interstate 
        branching operations.--If a branch which results from a 
        transaction under paragraph (1) is the branch of a national 
        bank, section 5155(f) of the Revised Statutes of the United 
        States shall apply with respect to such branch.
            ``(4) State taxation authority not affected.--No provision 
        of this subsection shall be construed as affecting the 
        authority of any State or political subdivision of any State to 
        apply and administer any tax or method of taxation to any bank 
        subsidiary or additional branch resulting from a consolidation 
        or other transaction under paragraph (1) or (2), any bank 
        holding company which controls any bank or branch resulting 
        from any such consolidation or other transaction, or any 
        affiliate of any such bank or company to the extent such tax or 
        tax method is otherwise permissible by or under the 
        Constitution of the United States of America or other Federal 
        law.
            ``(5) Plan on meeting local credit needs.--The responsible 
        agency (as determined under subsection (c)(2)) may not approve 
        any application for any consolidation or other transaction 
        under this subsection unless the responsible agency has 
        considered a plan submitted by the applicant bank holding 
        company for meeting local credit needs in the communities 
        served by any bank subsidiary of the company which is involved 
        in the proposed consolidation or transaction, including the 
        extent to which the amount of the anticipated savings 
        attributable to the proposed consolidation or other transaction 
        will be available to meet such local credit needs.''.

SEC. 106. BRANCH CLOSURES.

    Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 1831r-1) 
is amended by adding at the end the following new subsection:
    ``(d) Branch Closures in Interstate Banking or Branching 
Operations.--
            ``(1) Notice requirements.--In the case of an interstate 
        bank which proposes to close any branch in a low- or moderate-
        income area, the notice required under subsection (b)(2) shall 
        contain the mailing address of the appropriate Federal banking 
        agency and a statement that comments on the proposed closing of 
        such branch may be mailed to such agency.
            ``(2) Action required by appropriate federal banking 
        agency.--If, in the case of a branch referred to in paragraph 
        (1)--
                    ``(A) a person from the area in which such branch 
                is located--
                            ``(i) submits a written request relating to 
                        the closing of such branch to the appropriate 
                        Federal banking agency; and
                            ``(ii) includes a statement of specific 
                        reasons for the request, including a discussion 
                        of the adverse effect of such closing on the 
                        availability of banking services in the area 
                        affected by the closing of the branch; and
                    ``(B) the agency concludes that the request is not 
                frivolous,
        the agency shall consult with community leaders in the affected 
        area and convene a meeting of representatives of the agency 
        with community leaders in the affected area and such other 
        individuals, organizations, and depository institutions (as 
        defined in section 19(b)(1)(A) of the Federal Reserve Act) as 
        the agency may determine to be appropriate, to explore the 
        feasibility of obtaining adequate alternative facilities and 
        services for the affected area, including the establishment of 
        a new branch by another depository institution, the chartering 
        of a new depository institution, or the establishment of a 
        community development credit union, following the closing of 
        the branch.
            ``(3) No affect on closing.--No action by the appropriate 
        Federal banking agency under paragraph (2) shall affect the 
        authority of an interstate bank to close a branch (including 
        the timing of such closing) if the requirements of subsections 
        (a) and (b) have been met by such bank with respect to the 
        branch being closed.
            ``(4) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Interstate bank defined.--The term 
                `interstate bank' means a bank which maintains branches 
                in more than 1 State.
                    ``(B) Low- or moderate-income area.--The term `low- 
                or moderate-income area' means a census tract for which 
                the median family income is--
                            ``(i) less than 80 percent of the median 
                        family income for the metropolitan statistical 
                        area (as designated by the Director of the 
                        Office of Management and Budget) in which the 
                        census tract is located; or
                            ``(ii) in the case of a census tract which 
                        is not located in a metropolitan statistical 
                        area, less than 80 percent of the median family 
                        income for the State in which the census tract 
                        is located, as determined without taking into 
                        account family income in metropolitan 
                        statistical areas in such State.''.

SEC. 107. PROHIBITION AGAINST DEPOSIT PRODUCTION OFFICES.

    (a) Regulations.--Before the end of the 120-day period beginning on 
the date of the enactment of the Interstate Banking Efficiency Act of 
1994, each appropriate Federal banking agency shall prescribe 
regulations which prohibit any person from using any authority to 
engage in interstate branching pursuant to this title, or any amendment 
made by this title to any other provision of law, primarily for the 
purpose of deposit production.
    (b) Guidelines for Meeting Credit Needs.--Regulations issued under 
subsection (a) shall include guidelines to ensure that each interstate 
branch meets the credit needs of the community and market area in which 
the branch operates.
    (c) Limitation on Out-of-State Loans.--
            (1) Limitation.--Regulations issued under subsection (a) 
        shall require that if the percentage of outstanding loans made 
        by an interstate branch to borrowers located in the host State 
        of, or market area served by, the branch is less than half the 
        average of such percentage for all Federal depository 
        institutions and State depository institutions having their 
        principal place of operations in the host State or that market 
        area--
                    (A) the appropriate Federal banking agency for the 
                branch shall review the loan portfolio of the branch 
                and determine whether the branch is reasonably meeting 
                the credit needs of the community and market area in 
                which the branch operates; and
                    (B) if the agency determines that the branch is not 
                reasonably meeting those needs--
                            (i) the branch shall be closed, and
                            (ii) the person which established the 
                        branch may not open a new branch in that State 
                        unless the person provides reasonable 
                        assurances to the satisfaction of the 
                        appropriate Federal banking agency that the new 
                        branch will reasonably meet the credit needs of 
                        the community and market area in which the new 
                        branch will operate.
            (2) Considerations.--In making a determination under 
        paragraph (1)(A) regarding an interstate branch, the 
        appropriate Federal banking agency shall consider--
                    (A) whether the branch was acquired as part of the 
                purchase of a failed or failing depository institution;
                    (B) whether the branch has a higher concentration 
                of commercial and credit card lending; and
                    (C) the ratings received by the branch in 
                evaluations under the Community Reinvestment Act of 
                1977.
    (d) Application.--This section shall not apply to any interstate 
branch acquired before January 1, 1992, as part of any consolidation or 
merger of depository institutions.
    (e) Definitions.--For the purposes of this section, the following 
definitions shall apply:
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the same meaning as 
        in section 3 of the Federal Deposit Insurance Act.
            (2) Branch.--The term ``branch'' means any office, agency, 
        or other place of business located in any State at which 
        deposits are received, checks paid, or money lent.
            (3) Federal depository institution and state depository 
        institution.--The terms ``Federal depository institution'' and 
        ``State depository institution'' have the same meanings as in 
        section 3 of the Federal Deposit Insurance Act.
            (4) Host state defined.--The term ``host State'' means the 
        State in which a bank establishes or maintains a branch, other 
        than--
                    (A) in the case of an insured State bank, the State 
                in which the bank is chartered;
                    (B) in the case of a national bank, the State in 
                which the main office of the bank is located; and
                    (C) in the case of a bank holding company, the 
                State in which the total deposits of all bank 
                subsidiaries of such company is the greatest.
            (5) Interstate branch.--The term ``interstate branch'' 
        means a branch established pursuant to the authority referred 
        to in subsection (a).
            (6) Principal place of operations.--The term ``principal 
        place of operations'' means the State in which the total 
        deposits of all bank subsidiaries of a person are greatest.
            (7) State defined.--The term ``State'' has the same meaning 
        as in section 3 of the Federal Deposit Insurance Act.

SEC. 108. FEDERAL RESERVE BOARD STUDY ON BANK FEES.

    (a) In General.--Section 1002 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended 
to read as follows:

``SEC. 1002. SURVEY OF BANK FEES AND SERVICES.

    ``(a) Annual Survey Required.--The Board of Governors of the 
Federal Reserve System shall obtain a sample, which is representative 
by geographic location and size of the institution, of--
            ``(1) certain retail banking services provided by insured 
        depository institutions; and
            ``(2) the fees, if any, which are imposed by such 
        institutions for providing such service, including fees imposed 
        for not sufficient funds, deposit items returned, and automated 
        teller machines.
    ``(b) Annual Report to Congress Required.--
            ``(1) Preparation.--The Board of Governors of the Federal 
        Reserve System shall prepare a report of the results of each 
        survey conducted pursuant to subsection (a).
            ``(2) Contents of the report.--Each report prepared 
        pursuant to paragraph (1) shall include--
                    ``(A) a description of any discernible trend, in 
                the Nation as a whole and in each State, in the cost 
                and availability of retail banking services which 
                delineates differences on the basis of size of the 
                institution and engagement in multistate activity; and
                    ``(B) a description of the correlation, if any, 
                among the following factors:
                            ``(i) An increase or decrease in the amount 
                        of any deposit insurance premium assessed by 
                        the Federal Deposit Insurance Corporation 
                        against insured depository institutions.
                            ``(ii) An increase or decrease in the 
                        amount of the fees imposed by such institutions 
                        for providing retail banking services.
                            ``(iii) A decrease in the availability of 
                        such services.
            ``(3) Submission to congress.--The Board of Governors of 
        the Federal Reserve System shall submit each annual report to 
        the Congress not later than June 1 of each calendar year.''.
    (b) Sunset.--The requirements of subsection (a) shall not apply 
after the end of the 7-year period beginning on the date of enactment 
of this Act.

SEC. 109. RESTATEMENT OF EXISTING LAW.

    No provision of this title and no amendment made by this title to 
any other provision of law shall be construed as affecting in any way 
the right of any State, or any political subdivision of any State, to 
impose or maintain a nondiscriminatory franchise tax or other 
nonproperty tax instead of a franchise tax in accordance with section 
3124 of title 31, United States Code.

                       TITLE II--CRA EVALUATIONS

SEC. 201. STATE-BY-STATE CRA EVALUATIONS OF DEPOSITORY INSTITUTIONS 
              WITH INTERSTATE BRANCHES.

    Section 807 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2906) is amended by adding at the end the following new subsection:
    ``(d) Institutions With Interstate Branches.--
            ``(1) State-by-state evaluation.--In the case of a 
        regulated financial institution which maintains 1 or more 
        domestic branches located outside the State in which the 
        institution's principal place of business is located (hereafter 
        in this subsection referred to as the `home State'), the 
        appropriate Federal financial supervisory agency shall 
        prepare--
                    ``(A) a written evaluation of the entire 
                institution's record of performance under this Act, as 
                required by subsections (a), (b), and (c) of this 
                section; and
                    ``(B) for each State in which the institution 
                maintains 1 or more domestic branches (including the 
                institution's home State), a separate written 
                evaluation of the institution's record of performance 
                within such State under this Act, as required by 
                subparagraphs (A) and (B) of subsection (b)(1) of this 
                section.
            ``(2) Content of state level evaluation.--A written 
        evaluation prepared pursuant to paragraph (1)(B) of this 
        subsection shall report the information required by such 
        paragraph separately for each metropolitan area (as defined by 
        the appropriate Federal financial supervisory agency) in which 
        the regulated financial institution maintains 1 or more 
        domestic branch offices and separately for the nonmetropolitan 
        portion of the State if the institution maintains 1 or more 
        domestic branch offices in such nonmetropolitan area.''.
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