[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 265 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 265

To increase the amount of credit available to fuel local, regional, and 
national economic growth by reducing the regulatory burden imposed upon 
            financial institutions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 28 (legislative day, January 5), 1993

  Mr. Shelby  (for himself, Mr. Inouye, Mr. Wallop, Mr. Mack, and Mr. 
    Heflin) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To increase the amount of credit available to fuel local, regional, and 
national economic growth by reducing the regulatory burden imposed upon 
            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,

SECTION. 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic Growth 
and Regulatory Paperwork Reduction Act of 1993''.
    (b) Table of Contents.--

           TITLE I--REGULATORY IMPACT ON CREDIT AVAILABILITY

                     Subtitle A--General Provisions

Sec. 101. Regulation of real estate lending.
Sec. 102. Real estate appraisal amendment.
Sec. 103. Public deposits.
     Subtitle B--Impact of Accounting and Capital Issues on Credit 
                              Availability

Sec. 111. Audit costs.
Sec. 112. Recourse agreements.
Sec. 113. Market value accounting.
Sec. 114. Report on capital standards and their impact on the economy.
Sec. 115. Minimize potential impact of capital standards on credit 
                            availability.
                Subtitle C--Disincentives to Risk-Taking

Sec. 121. Due process protections.
Sec. 122. Culpability standards in penalty provisions.
Sec. 123. Director and officer liability actions.
        Subtitle D--Miscellaneous Credit Availability Provisions

Sec. 131. Regulatory appeals process.
Sec. 132. Aggregate limits on insider lending.
Sec. 133. Sterile reserves studies.
Sec. 134. Credit card accounts receivable sales.
Sec. 135. Changes to the Federal Home Loan Bank Act to promote credit 
                            availability.
                  TITLE II--REGULATORY MICROMANAGEMENT

Sec. 201. Regulatory standards.
Sec. 202. Paperwork reduction review.
Sec. 203. Rules on deposit taking.
Sec. 204. Adequate transition period for new regulations.
         TITLE III--UNNECESSARY COST, PAPERWORK AND REGULATION

                     Subtitle A--General Provisions

Sec. 301. Annual examinations.
Sec. 302. Coordinated examinations.
Sec. 303. Differences in accounting principles.
Sec. 304. Reduction of call report burdens.
Sec. 305. Regulatory review of capital compliance burden.
Sec. 306. Branch closures.
Sec. 307. Bank secrecy act amendments.
Sec. 308. Clarifying amendments.
Sec. 309. Limiting potential liability on foreign accounts.
Sec. 310. Repeal out-dated statutory provision.
                Subtitle B--Holding Company Efficiencies

Sec. 321. Expedited procedures for forming a bank holding company.
Sec. 322. Exemption of certain holding company formations from 
                            registration under the securities act of 
                            1933.
Sec. 323. Expedited procedures for bank holding companies to seek 
                            approval to engage in nonbanking 
                            activities.
Sec. 324. Reduction of post-approval waiting period for bank holding 
                            company acquisitions.
Sec. 325. Reduction of post-approval waiting period for bank mergers.
   TITLE IV--CONSUMER INCONVENIENCE, PAPERWORK, AND COST; OTHER NON-
                          SUPERVISORY REFORMS

     Subtitle A--Consumer Benefits and Lending Process Improvements

Sec. 401. Streamlined lending process for consumer benefit.
Sec. 402. Exemption for certain borrowers.
Sec. 403. Modification of waiver of right of rescission.
Sec. 404. Alternative disclosures for adjustable rate mortgages.
Sec. 405. Exemption for business accounts.
Sec. 406. Elimination of duplicate disclosures for home equity loans.
               Subtitle B--Other Non-Supervisory Reforms

     Part 1--Expedited Funds Availability and Electronic Transfers

Sec. 411. Availability schedules.
Sec. 412. Definition of a new account.
Sec. 413. Jurisdiction.
Sec. 414. Unauthorized electronic fund transfers.
             Part 2--Amendments to the Truth In Lending Act

Sec. 421. Liability for unauthorized use of credit cards.
                    Part 3--Homeownership Amendments

Sec. 431. Home mortgage disclosure act exemption.
Sec. 432. Homeownership debt counseling notification.
Sec. 433. Elimination of duplicative data collection.
             Part 4--Amendments to the Truth In Savings Act

Sec. 441. Civil liability.
    Part 5--Amendments to the Real Estate Settlements Procedures Act

Sec. 451. Clarify disclosure requirements.
Sec. 452. Exemption of business loans.
                     TITLE V--COMMUNITY INVESTMENT

Sec. 501. Community reinvestment act amendments.

           TITLE I--REGULATORY IMPACT ON CREDIT AVAILABILITY

                     Subtitle A--General Provisions

SEC. 101. REGULATION OF REAL ESTATE LENDING.

    Subsection (o) of section 18 of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(o)) (as added by section 304 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991) is amended--
            (a) by redesignating paragraph (4) as paragraph (5); and
            (b) by inserting new paragraph (4) as follows:
            ``(4) Consideration of particular impact.--In prescribing 
        standards under paragraph (1), the appropriate Federal banking 
        agencies shall, consistent with safety and soundness,--
                    ``(A) 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; and
                    ``(B) minimize the negative impact that these 
                standards have on the availability of credit for such 
                purposes and in such areas''.

SEC. 102. REAL ESTATE APPRAISAL AMENDMENT.

    Section 1122 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 3351) is amended--
            (a) by redesignating subsections (b), (c), (d) and (e) as 
        subsections (c), (d), (e) and (f) respectively;
            (b) by adding the following new subsection (b):
    ``(b) Reciprocity.--The Appraisal Subcommittee shall encourage the 
States to develop reciprocity agreements among themselves so as to 
readily authorize appraisers licensed or certified in one State and in 
good standing with their State appraiser certifying or licensing agency 
to perform appraisals in another State or States as though they were 
licensed or certified in that State or States.''; and
            (c) by adding at the end of subsection (a)(3) the following 
        new sentence: ``A State appraiser certifying or licensing 
        agency shall not impose excessive fees of burdensome 
        requirements for temporary practice under this subsection, as 
        determined by the Appraisal Subcommittee.''.

SEC. 103. PUBLIC DEPOSITS.

    Section 13(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)) is amended--
            (a) by inserting ``(1) In General.--'' before ``No 
        agreement which tends'';
            (b) by redesignating paragraphs (1), (2), (3) and (4) as 
        subparagraphs (A), (B), (C) and (D) respectively; and
            (c) by inserting the following new paragraph (2):
            ``(2) Exception.--This subsection shall not apply to any 
        agreement permitting or affecting the deposit custody or 
        collateralization of funds of any public entity.''.

     Subtitle B--Impact of Accounting and Capital Issues on Credit 
                              Availability

SEC. 111. AUDIT COSTS.

    (a) In General.--Section 36 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831m) (as added by section 112 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991) is amended--
            (1) Auditor attestations.--
                    (A) in subsection (a)(2)(A)(ii), by striking 
                ``subsections (c) and (d)'' and inserting ``subsection 
                (c)'';
                    (B) by striking subsection (c);
                    (C) in subsection (d), by deleting ``(d)'' and 
                inserting ``(c)''; and
                    (D) by striking subsection (e);
            (2) Duplicative reporting.--in subsection (i), by striking 
        ``if--(1) services and functions'' and all that follows through 
        ``or the appropriate Federal banking agency.'' and inserting 
        ``if services and functions comparable to those required under 
        this section are provided at the holding company level.'';
            (3) Independent audit committees.--
                    (A) in subsection (g)(1)(A), by striking 
                ``entirely'' and inserting ``the majority of which 
                is'';
                    (B) in subsection (g)(1)(C),
                            (i) by inserting ``and'' after the 
                        semicolon in clause (i), and by striking ``; 
                        and'' in clause (ii) and inserting ``.''; and
                            (ii) by striking clause (iii);
                    (C) in subsection (g)(1), by inserting the 
                following new subparagraph:
                    ``(D) Exemptive authority.--each appropriate 
                Federal banking agency shall, by regulation, exempt 
                from the requirements of this subsection all insured 
                depository institutions which face hardships in 
                retaining competent directors on their internal audit 
                committees as a result of this subsection. In 
                determining what types of institutions will be 
                exempted, the agency shall consider such factors as the 
                size of the institution and the availability of 
                competent outside directors in the community.''; and
            (4) Public availability.--in subsection (a)(3), by 
        inserting at the end the following new sentence--
        ``Notwithstanding the previous sentence, the Corporation and 
        the appropriate Federal banking agencies may designate certain 
        information as privileged and confidential and not available to 
        the public.''.
            (5) Quarterly reports.--in subsection (g)(2), by inserting 
        the following new subparagraph (D)--
            ``(D) Notice to institution.--Upon determining that an 
        institution's quarterly reports shall be subject to the 
        requirements of subparagraph (A), the Corporation shall 
        promptly provide the institution with written notice of such 
        determination.''.
            (6) by redesignating subsections (f) through (j) as 
        subsections (d) through (h), respectively.
    (b) Effective Date.--Section 112(b) of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 is amended by striking 
``December 31, 1992'' and inserting ``December 31, 1993''.

SEC. 112. RECOURSE AGREEMENTS.

    Section 37(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(b)) (as added by section 121 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended by adding at the end 
the following new paragraph (3):
            ``(3) Recourse agreements.--Each appropriate Federal 
        banking agency shall require insured depository institutions to 
        use accounting principles consistent with generally accepted 
        accounting principles in determining, for purposes of 
        compliance with statutory or regulatory requirements, the 
        capital required to be held against loans sold with 
        recourse.''.

SEC. 113. MARKET VALUE ACCOUNTING.

    Section 37(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(a)(3) (as added by section 121 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended by striking 
subparagraph (D).

SEC. 114. REPORT ON CAPITAL STANDARDS AND THEIR IMPACT ON THE ECONOMY.

    (a) Study.--No later than 90 days after enactment of this Act, the 
Department of the Treasury, after consultation with the Federal banking 
agencies, shall report to the House and Senate Banking Committees on 
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; and
            (2) the availability of credit, particularly to consumers 
        and small businesses.
    The report shall contain any recommendations with respect to 
capital standards that the Department of the Treasury may wish to 
provide.
    (b) Definition.--For purposes of this section, the terms ``Federal 
banking agency'' and ``insured depository institution'' have the same 
meanings as in section 3 of the Federal Deposit Insurance Act.

SEC. 115. MINIMIZE POTENTIAL IMPACT OF CAPITAL STANDARDS ON CREDIT 
              AVAILABILITY.

    Section 305 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
            (a) in subsection (b)(1)(A)--
                    (1) by striking clauses (ii) and (iii);
                    (2) by striking ``(A) take adequate account of--(i) 
                interest-rate risk'' and inserting ``(A) take adequate 
                account of interest-rate risk; and''.
            (b) by striking paragraph (3) in subsection (b) and 
        inserting the following new paragraph (3):
            ``(3) Timing for prescribing revised standards.--
                    ``(A) Interest rate risk.--No appropriate Federal 
                banking agency shall prescribe final regulations in the 
                Federal Register to implement subparagraph (A) of 
                paragraph (1) of this subsection prior to--
                            ``(i) the implementation of similar 
                        standards at an international level; and
                            ``(ii) the establishment of reasonable 
                        transition rules, subsequent to the occurrence 
                        specified in clause (i), to facilitate 
                        compliance with those regulations.
                    ``(B) Multifamily mortgages.--Each appropriate 
                Federal banking agency shall--
                            ``(i) publish final regulations in the 
                        Federal Register to implement paragraph (1)(B) 
                        not later than 18 months after date of 
                        enactment of this Act; and
                            ``(ii) establish reasonable transition 
                        rules to facilitate compliance with those 
                        regulations.''.

                Subtitle C--Disincentives to Risk-taking

SEC. 121. DUE PROCESS PROTECTIONS.

    (a) Attachment of Assets.--
            (1) Insured depository institutions.--
                    (A) Section 11(d)(19) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1821(d)(19)) is amended--
                            (i) in subparagraph (A), by striking 
                        ``without regard'' and all that follows through 
                        ``immediate'';
                            (ii) in subparagraph (B), by striking ``(as 
                        modified with respect to such proceeding by 
                        subparagraph (A))''.
                    (B) Section 8(b) of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818(b)) is amended by redesignating 
                subsection (b)(6)(F) as subsection (b)(6)(G), and 
                inserting after subsection (b)(6)(E) the following:
                    ``(F) prohibit such person from withdrawing, 
                transferring, removing, dissipating, or disposing of 
                any funds, assets or other property where injury, loss, 
                or damage to such property is irreparable and 
                immediate; and''.
                    (C) Section 8(i) of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818(i)) is amended by striking 
                paragraph (4)(B) and inserting the following:
                    ``(B) Standard.--Rule 65 of the Federal Rules of 
                Civil Procedure shall apply with respect to any 
                proceeding under this paragraph.''.
            (2) Credit Unions.--
                    (A) Section 207(b)(2)(H) of the Federal Credit 
                Union Act (12 U.S.C. 1787(b)(2)(H)) is amended--
                            (i) in clause (i), by striking ``without 
                        regard'' and all that follows through 
                        ``immediate''; and
                            (ii) in clause (ii), by striking ``(as 
                        modified with respect to such proceeding by 
                        clause (i))''.
                    (B) Section 206(e)(3) of the Federal Credit Union 
                Act (12 U.S.C. 1786(e)(3)) is amended by redesignating 
                subsection (e)(3)(F) as subsection (e)(3)(G), and 
                inserting after subsection (e)(3)(E) the following:
                    ``(F) prohibit such person from withdrawing, 
                transferring, removing, dissipating, or disposing of 
                any funds, assets or other property where injury, loss, 
                or damage to such property is irreparable and 
                immediate; and''.
    (b) Strict Liability.--Section 18(j)(4)(A) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(j)(4)(A)) is amended by inserting 
``negligently'' after ``who,'' each time it appears.

SEC. 122. CULPABILITY STANDARDS IN PENALTY PROVISIONS.

    (a) General Provisions.--
            (1) Insured depository institutions.--Section 8(i)(2) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(2)) is 
        amended--
                    (A) in subparagraph (A)(i), by inserting 
                ``negligently'' after ``(i)''; and
                    (B) in subparagraph (B)(i)(I), by inserting 
                ``recklessly'' after ``(i)(I)''.
            (2) Credit unions.--Section 206(k)(2) of the Federal Credit 
        Union Act (12 U.S.C. 1786(k)(2)) is amended--
                    (A) in subparagraph (A)(i), by inserting 
                ``negligently'' after ``(i)''; and
                    (B) in subparagraph (B)(i)(I), by inserting 
                ``recklessly'' after ``(i)(I)''.
    (b) Nonmember Insured Banks and Savings Associations.--Section 
18(j)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1828(j)(4)) 
(as amended by section 121(b) of this Act) is amended in subparagraph 
(B), by inserting ``recklessly'' after ``(i)(I)''.
    (c) Change in Control of Depository Institutions.--Section 7(j)(16) 
of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)(16)) is 
amended--
            (1) in subparagraph (A), by inserting ``negligently'' after 
        ``Any person who''; and
            (2) in subparagraph (B), by inserting ``recklessly'' after 
        ``(i)(I)''.
    (d) National Banks.--Section 5239(b) of the Revised Statutes (12 
U.S.C. 93(b)) is amended--
            (1) in paragraph (1), by inserting ``negligently'' after 
        ``who,''; and
            (2) in paragraph (2)(A)(i), by inserting ``recklessly'' 
        after ``(A)(i)''.
    (e) Member Banks.--Section 29(a) of the Federal Reserve Act (12 
U.S.C. 504(a)) is amended--
            (1) in subsection (a), by inserting ``negligently'' after 
        ``who,''; and
            (2) in subsection (b)(1)(A), by inserting ``recklessly'' 
        after ``(1)(A)''.
    (f) Member Banks.--Section 19(l) of the Federal Reserve Act (12 
U.S.C. 505(l) is amended--
            (1) in paragraph (1), by inserting ``negligently'' after 
        ``who,''; and
            (2) in paragraph (2)(A)(1), by inserting ``recklessly'' 
        after ``(A)(1)''.
    (g) Banks.--Section 106(b)(2)(F) of the Bank Holding Company Act 
Amendments of 1970 (12 U.S.C. 1972(2)(F)) is amended--
            (1) in clause (i), by inserting ``negligently'' after 
        ``who,''; and
            (2) in clause (ii)(I)(aa), by inserting ``recklessly'' 
        after ``(I)(aa)''.

SEC. 123. DIRECTOR AND OFFICER LIABILITY ACTIONS.

    Section 11(k) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(k)) is amended by deleting the last sentence.

        Subtitle D--Miscellaneous Credit Availability Provisions

SEC. 131. REGULATORY APPEALS PROCESS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, each appropriate Federal banking agency and the 
National Credit Union Administration shall establish an independent 
appellate process within its agency responsible for reviewing material 
supervisory determinations made at insured depository institutions or 
credit unions that it supervises.
    (b) Review Process.--In establishing this independent appellate 
process, each agency shall ensure--
            (1) that any appeal of a supervisory determination from any 
        insured depository institution or credit union, or any officer, 
        director, employee or other representative of any insured 
        depository institution or credit union, be heard and decided 
        expeditiously;
            (2) that appropriate safeguards exist for protecting the 
        appellant from retaliation by agency examiners; and
            (3) that the ruling agency officer have the authority, 
        where appropriate and as justice so requires, to stay the 
        supervisory determination pending completion of the appellate 
        process.
    (c) Comment Period.--Each agency shall provide public notice and 
opportunity for comment on proposed guidelines for an appellate process 
not later than 90 days after enactment of this Act.
    (d) Definitions.--For purposes of this section--
            (1) the term ``agency'' shall refer to the appropriate 
        Federal banking agency and the National Credit Union 
        Administration;
            (2) the terms ``insured depository institution'' and 
        appropriate Federal banking agency'' have the same meanings as 
        in section 3 of the Federal Deposit Insurance Act; and
            (3) the term ``material supervisory determination'' 
        includes determinations relating to exam ratings, the adequacy 
        of loan loss reserve provisions, and loan classifications on 
        loans significant to the institution.

SEC. 132. AGGREGATE LIMITS ON INSIDER LENDING.

    Section 22(h)(5) of the Federal Reserve Act (12 U.S.C. 375b(5)) (as 
amended by section 306 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended--
            (a) by redesignating subparagraph (C) as subparagraph (D);
            (b) by inserting the following new subparagraph (C):
            ``(C) Small bank exception.--Notwithstanding subparagraph 
        (A), member banks with less than $100,000,000 in deposits may 
        make such extensions of credit in the aggregate to persons 
        specified in subparagraph (A) in an amount not to exceed 2 
        times the bank's unimpaired capital and unimpaired surplus.''; 
        and
            (c) in subparagraph (D), as redesignated, by striking 
        ``less than $100,000,000'' and inserting ``between $100,000,000 
        and $250,000,000''.

SEC. 133. STERILE RESERVES STUDIES.

    (a) Federal Reserve Study.--No later than 90 days after enactment 
of this Act, the Board of Governors of the Federal Reserve System, in 
consultation with the Federal Deposit Insurance Corporation, shall 
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 insured depository 
        institutions with a market rate of interest on sterile 
        reserves, or in the alternative, providing payment of this 
        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 potential income lost by insured depository institutions; 
        and
            (4) the impact that 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.--No later than 90 days after enactment 
of this Act, the Office of Management and Budget and the Congressional 
Budget Office, in consultation with the Senate and House Committees on 
the Budget, shall jointly study and report to Congress on the budgetary 
impact of--
            (1) paying insured depository institutions a market rate of 
        interest on sterile reserves; and
            (2) paying such interest into the respective deposit 
        insurance funds.
    (c) Definition.--For purposes of this section, the term ``insured 
depository institution'' has the same meaning as in section 3 of the 
Federal Deposit Insurance Act.

SEC. 134. CREDIT CARD ACCOUNTS RECEIVABLE SALES.

    Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)) is amended by adding at the end the following new paragraphs:
            ``(14) Selling credit card accounts receivable.--
                    ``(A) Notification required.--An undercapitalized 
                insured depository institution (as defined in section 
                38) shall notify the Corporation in writing before 
                entering into an agreement to sell credit card accounts 
                receivable.
                    ``(B) Waiver by corporation.--The Corporation may 
                at any time, in its sole discretion and upon such terms 
                as it may prescribe, waive its right to repudiate an 
                agreement to sell credit card accounts receivable if 
                the Corporation--
                            ``(i) determines that the waiver is in the 
                        best interests of the deposit insurance fund; 
                        and
                            ``(ii) provides a written waiver to the 
                        selling institution.
                    ``(C) Effect of waiver on successors.--
                            ``(i) In general.--If, under subparagraph 
                        (B), the Corporation has waived its right to 
                        repudiate an agreement to sell credit card 
                        accounts receivable--
                                    ``(I) any provision of the 
                                agreement that restricts solicitation 
                                of a credit card customer of the 
                                selling institution, or the use of a 
                                credit card customer list of the 
                                institution, shall bind any receiver or 
                                conservator of the institution; and
                                    ``(II) the Corporation shall 
                                require any acquirer of the selling 
                                institution, or of substantially all of 
                                the selling institution's assets or 
                                liabilities, to agree to be bound by a 
                                provision described in subclause (I) as 
                                if the acquirer were the selling 
                                institution.
                            ``(ii) Exception.--Clause (i)(II) does 
                        not--
                                    ``(I) restrict the acquirer's 
                                authority to offer any product or 
                                service to any person identified 
                                without using a list of the selling 
                                institution's customers in violation of 
                                the agreement;
                                    ``(II) require the acquirer to 
                                restrict any preexisting relationship 
                                between the acquirer and a customer; or
                                    ``(III) apply to any transaction in 
                                which the acquirer acquires only 
                                insured deposits.
                    ``(D) Waiver not actionable.--The Corporation shall 
                not, in any capacity, be liable to any person for 
                damages resulting from waiving or failing to waive the 
                Corporation's right under this section to repudiate any 
                contract or lease, including an agreement to sell 
                credit card accounts receivable. No court shall issue 
                any order affecting any such waiver or failure to 
                waive.
                    ``(E) Other authority not affected.--This paragraph 
                does not limit any other authority of the Corporation 
                to waive the Corporation's right to repudiate an 
                agreement or lease under this section.
            ``(15) Certain credit card customer lists protected.--
                    ``(A) In general.--If any insured depository 
                institution sells credit card accounts receivable under 
                an agreement negotiated at arm's length that provides 
                for the sale of the institution's credit card customer 
                list, the Corporation shall prohibit any party to a 
                transaction with respect to the institution under this 
                section or section 13 from using the list except as 
                permitted under the agreement.
                    ``(B) Fraudulent transactions excluded.--
                Subparagraph (A) does not limit the Corporation's 
                authority to repudiate any agreement entered into with 
                the intent to hinder, delay, or defraud the 
                institution, the institution's creditors, or the 
                Corporation.''.

SEC. 135. CHANGES TO THE FEDERAL HOME LOAN BANK ACT TO PROMOTE CREDIT 
              AVAILABILITY.

    (a) Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(a)) is amended--
            (1) by redesignating subparagraphs (4) and (5) as 
        subparagraphs (5) and (6), respectively;
            (2) in newly redesignated subparagraph (5) (as redesignated 
        by subsection (a)(1) of this section), by inserting 
        ``nonresidential'' after the first ``Other'';
            (3) by inserting new subparagraph (4) as follows:
            ``(4) Other residential real estate-related collateral 
        acceptable to the Bank.''; and
            (4) in newly redesignated subparagraph (6) (as redesignated 
        by subsection (a)(1) of this section), by striking ``(4)'' and 
        inserting ``(5)''.
    (b) (Section 11(h) of the Federal Home Loan Bank Act (12 U.S.C. 
1431(h)) is amended by inserting after ``Federal Home Loan Bank 
System,'' the following clause: ``the purchase of participating 
interests in residential construction loans that are originated by 
member institutions and that comply with uniform Federal regulations on 
real estate lending standards under subsection (o) of section 1828 of 
title 12 of the United States Code, the authority to enhance the credit 
quality of any such participation interests in residential construction 
loans that the Banks resell,''.

                  TITLE II--REGULATORY MICROMANAGEMENT

SEC. 201. REGULATORY STANDARDS.

    Section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831s) 
(as added by section 132 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is hereby repealed.

SEC. 202. PAPERWORK REDUCTION REVIEW.

    Not later than 180 days after the date of enactment of this Act, 
each appropriate Federal banking agency, in consultation with insured 
depository institutions and other interested parties, shall--
            (a) review the extent to which current regulations require 
        insured depository institutions to produce unnecessary internal 
        written policies; and
            (b) eliminate such requirements, where appropriate.
    For purposes of this section, the terms ``insured depository 
institution'' and ``appropriate Federal banking agency'' have the same 
meanings as in section 3 of the Federal Deposit Insurance Act.

SEC. 203. RULES ON DEPOSIT TAKING.

    Section 29(g)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831f(g)(3)) is amended--
            (1) by inserting ``undercapitalized'' after ``includes 
        any''; and
            (2) by inserting ``undercapitalized'' after ``employee of 
        any''.

SEC. 204. ADEQUATE TRANSITION PERIOD FOR NEW REGULATIONS.

    (a) 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 be effective prior to 180 days from the date that 
that regulation becomes final unless--
            (1) the agency makes a finding that an emergency exists 
        which requires sooner action; or
            (2) explicitly directed by Congress.
    (b) Definition.--For purposes of this section, the terms ``Federal 
banking agency'' and ``insured depository institution'' have the same 
meanings as in section 3 of the Federal Deposit Insurance Act.

         TITLE III--UNNECESSARY COST, PAPERWORK AND REGULATION

                     Subtitle A--General Provisions

SEC. 301. ANNUAL EXAMINATIONS.

    (a) In General.--Section 10 of the Federal Deposit Insurance Act 
(12 U.S.C. 1820) (as amended by section 111 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991) is amended--
            (1) Small institution treatment.--In subsection (d), delete 
        paragraph (4) and insert the following new paragraph:
            ``(4) 2-year rule for certain small institutions.--
        Paragraphs (1), (2), and (3) shall apply with `24-month' 
        substituted for `12-month' if--
                    ``(A) the insured depository institution has total 
                assets of less than $250,000,000;
                    ``(B) the institution is well capitalized, as 
                defined in section 38;
                    ``(C) when the institution was most recently 
                examined, it was found to be well managed, had solid 
                earnings, had been profitable for the previous 2 years, 
                and its composite condition was found to be good;
                    ``(D) the insured depository institution is not 
                currently subject to a formal enforcement order by the 
                appropriate Federal banking agency; and
                    ``(E) no person acquired control of the institution 
                during the 12-month period in which a full-scope, on-
                site examination would be required but for this 
                paragraph.
            ``The dollar amount in the preceding sentence shall be 
        adjusted annually after December 31, 1992, by the annual 
        percentage increase in the Consumer Price Index for Urban Wage 
        Earners and Clerical Workers published by the Bureau of Labor 
        Statistics.''.
            (2) State examinations.--In subsection (d), delete 
        paragraph (3) and insert the following new paragraph:
            ``(3) State examinations acceptable.--The examination 
        requirement established under paragraph (1) may be satisfied by 
        an examination of the insured depository institution conducted 
        by the state during the 12-month period if the appropriate 
        Federal banking agency determines that the state examination 
        carries out the purposes of this subsection.''.
            (3) Certain depository institutions within holding 
        companies.--At the end of subsection (d), add the following new 
        paragraph:
            ``(7) Certain institutions within depository institution 
        holding companies.--The appropriate Federal banking agency may 
        exempt any insured depository institution owned or controlled 
        by a depository institution holding company from the 
        requirements of this subsection where--
                    ``(A) the agency is satisfied that adequate 
                internal controls and examination procedures exist 
                within the holding company structure; or
                    ``(B) the insured depository institutions owned or 
                controlled by the depository institution holding 
                company which hold a substantial majority of the total 
                assets of all insured depository institution assets 
                owned or controlled by the depository institution 
                holding company have been examined pursuant to the 
                requirements of this subsection.''.

SEC. 302. COORDINATED EXAMINATIONS.

    (a) Coordinated State and Federal Examinations.--Section 10(d) of 
the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) (as amended by 
section 301 of this Act) is amended by inserting after paragraph (7) 
the following new paragraph:
            ``(8) Coordinated examinations.--Each appropriate Federal 
        banking agency shall, to the extent practicable--
                    ``(A) coordinate all examinations to be conducted 
                by that agency at an insured depository institution; 
                and
                    ``(B) work with other appropriate Federal banking 
                agencies and appropriate State bank supervisors to 
                coordinate examinations to be conducted at an insured 
                depository institution.
        so as to minimize the disruptive effects of such examinations 
        on institution operations.''.
    (b) Technical and Conforming Amendment.--Section 3(r) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813 (r)) is amended to read 
as follows:
    ``(r) Appropriate State Bank Supervisor.--The term `appropriate 
State bank supervisor' means any officer, agency, or other entity of 
any State which has primary regulatory authority over State banks or 
State savings associations in such State.''.

SEC. 303. DIFFERENCES IN ACCOUNTING PRINCIPLES.

    Section 37(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(a)(2)) (as added by section 121 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991) is amended by adding the following 
new subparagraph (C)--
    ``(C) Minimize Differences.--Notwithstanding subparagraph (B), each 
appropriate Federal banking agency and the Corporation shall require 
insured depository institutions to use accounting principles consistent 
with generally accepted accounting principles to the extent practicable 
so as to minimize differences between statements and reports, and 
thereby reduce the compliance burdens and costs on insured depository 
institutions.''.

SEC. 304. REDUCTION OF CALL REPORT BURDENS.

    (a) Regulatory Review of Call Report Burdens.--
            (1) In general.--Within 60 days after the date of enactment 
        of this Act, each appropriate Federal banking agency shall 
        review the regulatory burden and costs incurred by insured 
        depository institutions during their preparation of reports of 
        condition.
            (2) Factors to be considered.--In conducting its review, 
        each agency shall consider all relevant factors that it deems 
        necessary to correctly determine the extent of the burden and 
        costs, including--
                    (A) the actual dollar cost to financial 
                institutions in preparing such reports;
                    (B) the time and resources expended to meet 
                regulatory directives;
                    (C) the frequency in which the agency has modified 
                the type(s) of information required to be reported in 
                such reports and the costs and burdens associated with 
                complying with such modifications; and
                    (D) the extent to which such costs and burdens, 
                viewed within the overall context of the total 
                regulatory burden and cost incurred by insured 
                depository institutions in their day-to-day operations, 
                impact upon the availability of credit.
            (3) Corrective measures.--After conducting its review, each 
        appropriate Federal banking agency shall revise its call report 
        requirements to remove any unnecessary burdens and costs. Prior 
        to any subsequent modification in call report requirements, 
        each agency shall consider the extent to which such 
        modifications impose unnecessary regulatory burdens and costs 
        upon insured depository institutions.
            (4) Definitions.--For purposes of this section, the terms 
        ``insured depository institution'' and ``appropriate Federal 
        banking agency'' have the same meanings as in section 3 of the 
        Federal Deposit Insurance Act.
    (b) Repeal of Publication Requirements.--
            (1) The fifth sentence of section 5211(a) of the Revised 
        Statutes (12 U.S.C. 161(a)) is amended by striking ``; and the 
        statement of resources and liabilities in the same form in 
        which it is made to the comptroller shall be published in a 
        newspaper'' and all that follows through the period and 
        inserting a period.
            (2) Section 5211(c) of the Revised Statutes (12 U.S.C. 
        161(c) is amended by striking the fourth sentence.
            (3) Section 7(a)(1) of the Federal Deposit Insurance Act is 
        amended by striking the fourth sentence.
            (4) The last sentence of the sixth undesignated paragraph 
        of section 9 of the Federal Reserve Act (12 U.S.C. 324) is 
        amended by striking ``and shall be published'' and all that 
        follows through the end of the sentence and inserting a period.
    (c) Amendment Relating to National Banks.--Section 5211(a) of the 
Revised Statutes (12 U.S.C. 161(a)) is amended by adding at the end the 
following sentence: ``Any change in the form of report of condition 
made under this subsection shall be effective only once in a particular 
calendar year, and only after at least 6 months from the date that 
notice of the change is published in the Federal Register, except that 
such change may be effective on a subsequent date or after less notice 
if the Comptroller makes a specific finding that an additional change 
in the form or a shorter advance-notice period is necessary because of 
an emergency or change in Federal law.''.
    (d) Amendment Relating to State Non-Member Insured Banks.--Section 
7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)) is 
amended by adding at the end the following new paragraph:
            ``(10) Transition period for changes in report 
        requirements.--Any change in the form of reports of condition 
        made under this subsection shall be effective only once in a 
        particular calendar year, and only after at least 6 months from 
        the date that notice of the change is published in the Federal 
        Register, except that such a change may be effective on a 
        subsequent date or after less notice if the Board of Directors 
        makes a specific finding that an additional change in the form 
        or a shorter advance-notice period is necessary because of an 
        emergency or change in Federal law.''.
    (e) Amendment Relating to State Member Banks.--The sixth 
undesignated paragraph of section 9 of the Federal Reserve Act (12 
U.S.C. 324) is amended by adding at the end the following sentence: 
``Any change in the form of report of condition made under this 
subsection shall be effective only once in a particular calendar year, 
and only after at least 6 months from the date that notice of the 
change is published in the Federal Register, except that such a change 
may be effective on a subsequent date or after less notice if the Board 
of Governors of the Federal Reserve System makes a specific finding 
that an additional change in the form or a shorter advance-notice 
period is necessary because of an emergency or change in Federal 
law.''.
    (f) Amendment Relating to Savings Association.--Section 5(v) of the 
Home Owners' Loan Act (12 U.S.C. 1464(v)) is amended by adding at the 
end the following new paragraph:
            ``(9) Transition period for changes in report 
        requirements.--Any change in the form of reports of condition 
        made under this subsection shall be effective only once in a 
        particular calendar year, and only after at least 6 months from 
        the date that notice of the change is published in the Federal 
        Register, except that such a change may be effective on a 
        subsequent date or after less notice if the Director makes a 
        specific finding that an additional change in the form or a 
        shorter advance-notice period is necessary because of an 
        emergency or change in Federal law.''.
    (g) Amendment Relating to Credit Unions.--Section 202(a)(1) of the 
Federal Credit Union Act (12 U.S.C. 1782(a)(1)) is amended by adding at 
the end the following sentence: ``Any change in the form of reports of 
condition made under this subsection shall be effective only once in a 
particular calendar year, and only after at least 6 months from the 
date that notice of the change is published in the Federal Register, 
except that such a change may be effective on a subsequent date or 
after less notice if the Board makes a specific finding that an 
additional change in the form or a shorter advance-notice period is 
necessary because of an emergency or change in Federal law.''.

SEC. 305. REGULATORY REVIEW OF CAPITAL COMPLIANCE BURDEN.

    Not later than 180 days after the date of enactment of this Act, 
the Federal Financial Institutions Examination Council, in consultation 
with insured depository institutions and other interested parties, 
shall--
            (a) review the extent to which current compliance 
        requirements associated with risk-based capital rules have an 
        unnecessarily costly and burdensome effect on community banks; 
        and
            (b) where appropriate, reduce such costs and burdens.
    For purposes of this section, the term ``insured depository 
institution'' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act.

SEC. 306. BRANCH CLOSURES.

    Section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831p) 
(as added by section 228 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991) is amended by adding at the end the following 
new subsections:
    ``(d) Definitions.--for purposes of this section, the term 
``branch'' shall not include:
            ``(1) automated teller machines;
            ``(2) a branch acquired through merger, consolidation, 
        purchase, assumption or other method that is located in a local 
        market area currently served by another branch of the acquiring 
        institution;
            ``(3) a branch that is closed and reopened in another 
        location within the same local market area which would continue 
        to provide banking services to substantially all of the 
        customers currently served by the branch that is closed;
            ``(4) a branch that is closed in connection with--
                    ``(A) an emergency acquisition under--
                            ``(i) section 11(n); or
                            ``(ii) subsections (f) or (k) of section 
                        13;
                    ``(B) any assistance provided by the Corporation 
                under section 13(c); and
            ``(5) any other branch closure whose exemption from the 
        notice requirements of this section would not produce a result 
        inconsistent with the purposes of this section. The appropriate 
        Federal banking agency shall, by regulation, determine the 
        circumstances under which such exemptions will be granted.
    ``(e) Effective Date.--the amendments made by this section shall 
become effective on the date of enactment of the Federal Deposit 
Insurance Corporation Improvement Act of 1991.''.

SEC. 307. BANK SECRECY ACT AMENDMENTS.

    (a) Staff Commentaries.--Title 31 of the United States Code is 
amended to add the following new section 5327:

``SEC. 5327. STAFF COMMENTARIES.

    ``The Secretary of the Treasury shall review all regulations 
promulgated under this title on an annual basis and seek comment from 
the public pursuant to this review. The Secretary shall publish all 
written rulings interpreting this title, as well as a staff commentary 
to the regulations issued under this title. This commentary shall be 
issued on an annual basis.''.
    (b) Log Requirements.--Section 5325(a)(1) of title 31 of the United 
States Code is amended--
            (1) by striking subparagraphs (A) and (B); and
            (2) by inserting the following new paragraph (1):
            ``(1) the individual has a transaction account with such 
        financial institution and the financial institution verifies 
        that fact through a signature card or other information 
        maintained by such institution in connection with the account 
        of such individual.''.
    (c) Exemption Process.--Section 5318(a)(5) of title 31 of the 
United States Code is amended--
            (1) by inserting ``or exception'' after ``an appropriate 
        exemption''; and
            (2) by inserting ``only after receiving comments from the 
        entities covered by this chapter. The Secretary must take into 
        account the effect that changes to the exemption or exception 
        process will have on the cost and efficiency of the reporting 
        process.'' after the words ``under this subchapter''.
    (d) Customer Filings.--Section 5313(a) of title 31 of the United 
States Code is amended by striking ``, the institution and any other 
participant in the transaction the Secretary may prescribe shall file a 
report'' and inserting ``the person who participates in the transaction 
shall file a report''.
    (e) Inflation Adjustments on CTR Amounts.--Section 5313(a) of title 
31 of the United States Code is amended by inserting after the second 
sentence the following new sentence: ``The Secretary must review the 
reporting requirements mentioned above by September 1 of each calendar 
year to determine if the reporting amount prescribed by the Secretary 
should be adjusted to account for inflation, cost effectiveness of the 
requirement or the usefulness for law enforcement purposes. The 
Secretary must submit a written report to the Congress each year 
disclosing how the reporting threshold decision was reached. The report 
must include an analysis of how the change will affect domestic 
financial institutions.''.

SEC. 308. CLARIFYING AMENDMENTS.

    (a) Data Collections.--Section 7(a)(8) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(a)(8)) (as amended by section 141(c) of 
the Federal Deposit Insurance Corporation Improvement Act of 1991) is 
amended to add 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.'';

SEC. 309. LIMITING POTENTIAL LIABILITY ON FOREIGN ACCOUNTS.

    (a) Amendment to the Federal Reserve Act.--Section 25 of the 
Federal Reserve Act (12 U.S.C. 601 et seq.) is amended by adding at the 
end the following:
    ``11. Limitations on Liability.--
            ``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--
                    ``(i) an act of war, insurrection or civil strife, 
                or
                    ``(ii) 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. The Board is authorized 
        to prescribe such regulations as it deems necessary to 
        implement this paragraph.''.
    (b) Amendments to the Federal Deposit Insurance Act.--
            (1) Section 18 of the Federal Deposit Insurance Act (12 
        U.S.C. 1828) is amended by adding at the end the following:
            ``(  ) Sovereign risk.--Section 25(11) 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(1)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(1)(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 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--The amendments made by this 
section shall not be construed to affect any claim arising from events 
(described in section 25(11) of the Federal Reserve Act, as added by 
subsection (a)) that occurred before the date of enactment of this 
section.

SEC. 310. REPEAL OUT-DATED STATUTORY PROVISION.

    Section 5204 of the Revised Statutes (12 U.S.C. 56) is amended--
            (1) in the second sentence, by striking ``deducting 
        therefrom its losses and bad debts'' and inserting ``subject to 
        other provisions of law''; and
            (2) by striking the third sentence.

SEC. 311 FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.

    Section 72 of title 12, United States Code is amended: In the first 
sentence delete ``two-thirds'' and replace it with ``one-half''; In the 
first sentence after the phrase, ``affiliate of a foreign bank'' 
insert, ``whether or not the association is owned or controlled by such 
foreign bank''.

                Subtitle B--Holding Company Efficiencies

SEC. 321. EXPEDITED PROCEDURES FOR FORMING A BANK HOLDING COMPANY.

    Section 3(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1842(a)) is amended--
            (1) by striking out ``or (B)'' and inserting in lieu 
        thereof ``(B),''; and
            (2) by inserting before the period at the end of the second 
        sentence the following: ``, or (C) with 30 days prior 
        notification to the Board, 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, immediately following the acquisition, the bank 
        holding company meets the capital and other financial standards 
        prescribed by the Board by regulation for such a bank holding 
        company and the holding company does not engage in any 
        activities other than those of banking or managing and 
        controlling banks. In promulgating regulations pursuant to this 
        subsection, the Board shall not require more capital for the 
        subsidiary bank immediately following the reorganization than 
        is required for a similarly sized bank that is not a subsidiary 
        of a bank holding company.''.

SEC. 322. EXEMPTION OF CERTAIN HOLDING COMPANY FORMATIONS FROM 
              REGISTRATION UNDER THE SECURITIES ACT OF 1933.

    Section 4 of the Securities Act of 1933 (15 U.S.C. 77d) is amended 
by adding at the end thereof the following new paragraph:
            ``(7) transactions involving offers or sales of equity 
        securities, in connection with the acquisition of a bank by a 
        company under section 3(a) of the Bank Holding Company Act of 
        1956 (12 U.S.C. 1842(A)), if the acquisition occurs solely as 
        part of a reorganization in which a person or group of persons 
        exchange their shares of a bank for shares of a newly formed 
        bank holding company and receive, after that reorganization, 
        substantially the same proportional share interests in the bank 
        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.''.

SEC. 323. EXPEDITED PROCEDURES FOR BANK HOLDING COMPANIES TO SEEK 
              APPROVAL TO ENGAGE IN NONBANKING ACTIVITIES.

    Paragraph (8) of section 4(c) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1843(c)) is amended--
            (1) by redesignating clauses (i) and (ii) of subparagraphs 
        (C), (D), and (E) as subclauses (I) and (II), respectively;
            (2) by redesignating subparagraphs (A) through (G), and any 
        cross references thereto as clauses (i) through (vii), 
        respectively; and
            (3) by striking out all that precedes ``purposes of this 
        subsection it is not'' and inserting in lieu thereof the 
        following:
            ``(8)(A) Activities closely related to banking.--In 
        accordance with the limitations and requirements contained in 
        subparagraphs (B) and (C) of this paragraph, shares of any 
        company whose activities the Board has determined (by order or 
        regulation) to be so closely related to banking or managing or 
        controlling banks as to be a proper incident thereto.
            ``(B) Notice requirements.--
                    ``(i) No bank holding company shall engage in any 
                activity or acquire the shares of a company pursuant to 
                this paragraph, either de novo or by an acquisition in 
                whole or in part of a going concern, unless the Board 
                has been given 60 days prior written notice of that 
                proposal and, within that period, the Board has not 
                issued an order--
                            ``(I) disapproving the proposal, or
                            ``(II) extending the time period in 
                        accordance with clause (iii) below.
                    ``(ii)(I) An acquisition may be made prior to the 
                expiration of the disapproval period if the Board 
                issues a written statement of its intent not to 
                disapprove the proposal.
                    ``(II) The Board shall publish in the Federal 
                Register notice of receipt of a notice under this 
                paragraph involving insurance and provide a reasonable 
                period for public comment. The Board shall issue an 
                order involving any such notice.
                    ``(III) No notice under this paragraph is required 
                for a bank holding company to establish de novo an 
                office to engage in any activity previously authorized 
                for that bank holding company under this paragraph or 
                to change location of an office engaged in that 
                activity.
                    ``(iii) The notice submitted to the Board shall 
                contain such information as the Board shall prescribe 
                by regulation or by specific request in connection with 
                a particular notice, except that the Board may require 
                only such information as may be relevant to the nature 
                and scope of the proposed activity and to the Board's 
                evaluation of the notice under the criteria specified 
                in clause (iv). If the Board requires additional 
                relevant information beyond that provided in the 
                notice, the Board may by order extend the time period 
                provided in clause (i) of this subparagraph until it 
                has received that information, and the activity that is 
                the subject of the notice may be commenced within 60 
                days of the date of that receipt unless the Board 
                issues a disapproval order as provided in clause (i). 
                Such an extension order is reviewable under section 9 
                of this Act.
                    ``(iv) In determining whether to disapprove a 
                notice under this paragraph, the Board shall consider 
                whether the performance of the activity described in 
                the notice by a bank holding company or subsidiary 
                thereof can reasonably be expected to produce benefits 
                to the public, such as greater convenience, increased 
                competition, or gains in efficiency, that outweigh 
                possible adverse effects, such as undue concentration 
                of resources, decreased or unfair competition, 
                conflicts of interests, or unsound banking practices. 
                In orders and regulations under this paragraph, the 
                Board may differentiate between activities commenced de 
                novo and activities commenced by the acquisition, in 
                whole or in part, of a going concern.
    ``(c) The Board shall by order set forth the reasons for any 
disapproval or determination not to disapprove a notice under this 
paragraph.
            ``(C) Insurance activities not closely related to 
        banking.--For''.

SEC. 324. REDUCTION OF POST-APPROVAL WAITING PERIOD FOR BANK HOLDING 
              COMPANY ACQUISITIONS.

    Section 11(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1849(b)(1)) is amended by adding before the period at the end of the 
fourth sentence thereof the following: ``or if no adverse comment has 
been received regarding section 4(c)(8)(C) or section 4(j) of this act, 
such shorter period of time as may be prescribed by the Board with the 
concurrence of the Attorney General, but in no event less than 5 
days.''.

SEC. 325. REDUCTION OF POST-APPROVAL WAITING PERIOD FOR BANK MERGERS.

    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 of the 
last sentence thereof the following: ``or such shorter period of time 
as may be prescribed by the agency with the concurrence of the Attorney 
General, but in no event less than 5 days.''.

   TITLE IV--CONSUMER INCONVENIENCE, PAPERWORK, AND COST; OTHER NON-
                          SUPERVISORY REFORMS

     Subtitle A--Consumer Benefits and Lending Process Improvements

SEC. 401. STREAMLINED LENDING PROCESS FOR CONSUMER BENEFIT.

    (a) Federal Reserve Study.--Within twelve months of enactment of 
this Act, the Board of Governors of the Federal Reserve System, in 
consultation with the Department of Housing and Urban Development, 
shall conduct a study and report to Congress on ways to streamline the 
credit-granting process.
    (b) Focus.--In carrying out subsection (a), the Board shall--
            (1) identify ways to streamline the home mortgage, small 
        business and consumer lending processes so as to--
                    (A) reduce consumer inconvenience, cost and time 
                delays; and
                    (B) minimize cost and burdens on insured depository 
                institutions and credit unions;
            (2) take such regulatory action, as appropriate, to meet 
        the objectives of paragraph (1); and
            (3) provide Congress with legislative recommendations on 
        changes necessary to carry out the purposes of this section.
    (c) Comment.--In carrying out the objectives of this section, the 
Board shall solicit comments from other Federal banking agencies, 
consumer groups, insured depository institutions, credit unions, and 
other interested parties.
    (d) Definition.--For purposes of this section, the term ``insured 
depository institution'' has the same meaning as in section 3 of the 
Federal Deposit Insurance Act.

SEC. 402. EXEMPTION FOR CERTAIN BORROWERS.

    Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended 
by adding at the end the following:
            ``(7) Credit transactions involving consumers who earn more 
        than $200,000 annually or have net assets in excess of 
        $1,000,000 at the time of such transaction.''.

SEC. 403. MODIFICATION OF WAIVER OF RIGHT OF RESCISSION.

    Section 125(d) of the Truth in Lending Act (15 U.S.C. 1635(d)) is 
amended by striking ``, if it finds that such action is necessary in 
order to permit homeowners to meet bona fide personal financial 
emergencies,''.

SEC. 404. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

    (a) Section 127A(a)(2)(G) of the Truth in Lending Act (15 U.S.C. 
1637a(a)(2)(G)) is amended by inserting before the semicolon ``, or a 
statement that the monthly payment may increase or decrease 
significantly due to increases in the annual percentage rate''.
    (b) In Section 128(a) of the Truth in Lending Act (15 U.S.C. 
1638(a), insert at the end the following new paragraph (14):
            ``(14) In any variable rate residential mortgage 
        transaction, at the creditors' option, a statement that the 
        monthly payment may increase or decrease substantially, or an 
        historical example illustrating the effects of interest rate 
        changes implemented according to the loan program.''.

SEC. 405. EXEMPTION FOR BUSINESS ACCOUNTS.

    Section 274 of the Truth in Savings Act (15 U.S.C. 4313) is amended 
by striking subsection (1) and inserting the following in its place:
            ``(1) The term `account' means any account intended for use 
        by and generally used by consumers primarily for personal, 
        family, or household purposes by a depository institution into 
        which a customer deposits funds, including demand accounts, 
        time accounts, negotiable order of withdrawal accounts, and 
        share draft accounts.''.

SEC. 406. ELIMINATION OF DUPLICATE DISCLOSURES FOR HOME EQUITY LOANS.

    Section 4 of the Real Estate Settlement Procedures Act (12 U.S.C. 
2603) is amended by inserting in subsection (a) after the first 
sentence: ``except that for federally related mortgage loans secured by 
a subordinate lien on residential property subject to section 127A(a) 
of the Truth in Lending Act (15 U.S.C. 1637a(a)), the disclosures of 
section 127A(a) of the Truth in Lending Act (15 U.S.C. 1637a(a)) may be 
used in place of the standard real estate settlement form.''.

               Subtitle B--Other Non-Supervisory Reforms

     PART 1--EXPEDITED FUNDS AVAILABILITY AND ELECTRONIC TRANSFERS

SEC. 411. AVAILABILITY SCHEDULES.

    (a) Treasury Checks.--Section 603(a)(2)(A) of the Expedited Funds 
Availability Act (12 U.S.C. 4002(a)(2)(A)) is amended--
            (1) by redesignating clauses (i) and (ii) as clauses (ii) 
        and (iii), respectively; and
            (2) by inserting before clause (ii), as redesignated, the 
        following:
                            ``(i) is deposited in a receiving 
                        depository institution which is staffed by 
                        individuals employed by such institutions;''
    (b) On-Us Items.--Section 603(a)(2)(E) of the Expedited 
Availability Act (12 U.S.C. 4002(a)(2)(E)) is amended by inserting ``is 
staffed by individuals employed by such institutions'' after ``branch 
of a depository institution''.
    (c) Local Checks.--Section 603(b)(1) of the Expedited Funds 
Availability Act (12 U.S.C. 4002(b)(1)) is amended by striking ``1 
business day'' and inserting ``2 business days''.

SEC. 412. DEFINITION OF A NEW ACCOUNT.

    Section 604(a) of Expedited Funds Availability Act (12 U.S.C. 
4003(a)) is amended by striking ``30-day period'' and inserting ``90-
day period''.

SEC. 413. JURISDICTION.

    Section 611(f) of the Expedited Funds Availability Act (12 U.S.C. 
4010(f)) is amended in the first sentence by inserting ``or other 
entities participating in the payments system, including States and 
political subdivisions thereof on which checks are drawn.'' after 
``depository institutions''.

SEC. 414. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.

    Section 909(a)(1) of Electronic Fund Transfer Act (15 U.S.C. 
1693g(a)(1)) is amended by inserting ``(or in cases where the 
cardholder has substantially contributed to the unauthorized use, 
including writing on or keeping with the card or other means of access 
a personal identification or other security code, $500)'' after 
``$50''.

             PART 2--AMENDMENTS TO THE TRUTH IN LENDING ACT

SEC. 421. LIABILITY FOR UNAUTHORIZED USE OF CREDIT CARDS.

    Section 133(a) of the Truth in Lending Act (15 U.S.C. 1643(a)) is 
amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
            ``(2)(A) Notwithstanding paragraph (1), a cardholder shall 
        be liable for the unauthorized use of a credit card if--
                    ``(i) the liability is in excess of $50; and
                    (ii) the cardholder fails to notify the card issuer 
                of any unauthorized transaction which appears on the 
                statement of the cardholder's account in connection 
                with an extension of consumer credit within 60 days of 
                the receipt of such statement.
            ``(B) The liability described in subparagraph (A) shall not 
        apply if the cardholder demonstrates that the failure to timely 
        notify the card issuer of the unauthorized use was due to 
        extenuating circumstances such as extended travel or 
        hospitalization, and notice was provided at the earliest 
        possible time thereafter.
            ``(C) the liability described in subparagraph (A) shall 
        only apply where the card issuer has provided prior notice to 
        the cardholder of such liability.''.

                    PART 3--HOMEOWNERSHIP AMENDMENTS

SEC. 431. HOME MORTGAGE DISCLOSURE ACT EXEMPTION.

    The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) 
is amended in section 309 (12 U.S.C. 2808) by inserting at the end the 
following new sentence: ``The amount of total assets in the preceding 
sentence shall be adjusted yearly on January 1 by the annual percentage 
change in the Consumer Price Index reported for the previous June 1.''.

SEC. 432. HOMEOWNERSHIP DEBT COUNSELING NOTIFICATION.

    Section 106(c)(5) of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x(c)(5)) is amended:
            (a) by inserting at the end the following new subparagraph 
        (F):
                    ``(F) Affect on foreclosure proceedings.--Failure 
                of a creditor to comply with the requirements of this 
                subsection shall in no way affect foreclosure 
                proceedings under State law.''; and
            (b) in subparagraph (B)--
                    (1) by inserting ``(i)'' before ``The notification 
                required'' and by renumbering clauses (i) and (ii) as 
                subclauses (I) and (II), respectively;
                    (2) by inserting the following new clause (ii)--
                            ``(ii) Creditors shall not be required to 
                        provide the notification required under 
                        subparagraph (A) more than once annually.''.

SEC. 433. ELIMINATION OF DUPLICATIVE DATA COLLECTION.

    Effective six months after the date of enactment of this Act, no 
Federal banking agency shall require any institution for which it is 
the appropriate Federal banking agency (as defined in section 3(q) of 
the Federal Deposit Insurance Act) to prepare, file, or maintain any 
form for the purpose of collection, analysis, or maintenance of 
appropriate data to further the purposes of, or to fulfill the 
requirements of, the Fair Housing Act, other than a form for data 
collection, analysis, or maintenance required under the Home Mortgage 
Disclosure Act of 1975.

             PART 4--AMENDMENTS TO THE TRUTH IN SAVINGS ACT

SEC. 441. CIVIL LIABILITY.

    Section 271 of the Truth in Savings Act (15 U.S.C. 4310) is 
amended--
            (1) by inserting the following new subsection (c):
    ``(c) Limits to Civil Liability.--In connection with the 
disclosures referred to in section 268, a depository institution shall 
have liability under paragraph (a)(2) of this section only for failing 
to comply with subsections (2) and (4) of section 268. A depository 
institution has no liability under this section for any failure to 
comply with section 263.''; and
            (2) by redesignating subsections (c), (d), (e), (f), (g), 
        (h) and (i) as subsections (d), (e), (f), (g), (h), (i) and 
        (j), respectively.

    PART 5--AMENDMENTS TO THE REAL ESTATE SETTLEMENTS PROCEDURES ACT

SEC. 451. CLARIFY DISCLOSURE REQUIREMENTS.

    Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605) is amended--
            (a) in subsection (a)(1)(B)--
                    (1) by inserting ``at the choice of the person 
                making a federally related mortgage loan--(i)'' after 
                ``(B)'';
                    (2) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and by striking 
                ``and'' at the end of newly redesignated subclause (II) 
                and inserting ``or''; and
                    (3) by inserting the following new clause (ii):
                            ``(ii) a statement that the person making 
                        the loan has previously assigned, sold, or 
                        transferred the servicing of federally related 
                        mortgage loans; and''.
            (b) in subsection (a)(2), by inserting at the end the 
        following new sentence: ``Notwithstanding the previous 
        sentences of this paragraph, the Secretary shall also permit 
        any person originating the loan, at the choice of such person, 
        to provide instead of the percentage estimates required to be 
        disclosed under this paragraph a statement that the servicing 
        may be assigned, sold or transferred during the 12-month period 
        beginning upon origination.''.

SEC. 452. EXEMPTION OF BUSINESS LOANS.

    The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601) 
is amended--
            (1) by redesignating sections 4 (as amended by section 406 
        of this Act) through 19 as sections 5 through 20, respectively; 
        and
            (2) by inserting the following new section 4:
    ``Sec. 4. Exempted Transactions.--This title does not apply to the 
following:
            ``(1) Credit transactions involving extensions of credit 
        primarily for business, commercial, or agricultural purposes, 
        or to government or governmental agencies or instrumentalities, 
        or to organizations; or
            ``(2) Credit transactions to finance or refinance 
        agricultural property (such as farms, ranches, aquaculture, or 
        vineyards) constituting 25 or more acres regardless of whether 
        the loan in part involves a lien including residential 
        property.''.

                     TITLE V--COMMUNITY INVESTMENT

SEC. 501. COMMUNITY REINVESTMENT ACT AMENDMENTS.

    (a) Compliance Burdens.--Section 804 of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2903) is amended--
            (1) in paragraph (1), by striking ``; and'' and inserting 
        ``;'';
            (2) in paragraph (2), by striking ``.'' and inserting ``; 
        and''; and
            (3) by adding at the end the following new paragraph (3):
            ``(3) minimize the regulatory paperwork burdens and costs 
        associated with compliance with this Act, giving appropriate 
        consideration and recognition to such factors as the nature and 
        scope of the institution's business, its location and area of 
        service, and such other factors as may be appropriate.''.
    (b) Safe Harbor.--The Community Reinvestment Act of 1977 (12 U.S.C. 
2901 et seq.) is hereby amended by adding the following new section:
    ``Sec. 809. Safe Harbor.--Notwithstanding section 804(2), an 
application for a deposit facility by--
            ``(a) a regulated financial institution shall not be denied 
        on the basis of such institution's compliance with this Act is 
        such institution received a rating in its last evaluation under 
        section 804 of `Outstanding' in its record of meeting community 
        credit needs, as provided in section 807(b); or
            ``(b) a depository institution holding company, as defined 
        in section 3(w) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(w)), shall not be denied if--
                    ``(1) regulated financial institution subsidiaries 
                representing, in the aggregate, two-thirds of the 
                holding company's regulated financial institution 
                assets received a rating in their last evaluation under 
                section 804 of `Outstanding'; and
                    ``(2) the remaining regulated financial institution 
                subsidiaries received a rating in their last evaluation 
                under section 804 of at least `Satisfactory'.''.
    (c) Increased Incentives to Lending to Low- and Moderate-Income 
Communities.--Section 804 of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903) (as amended by section 501(a) of this Act) is amended--
            (1) in paragraph (2), by striking ``; and'' and inserting 
        ``;'';
            (2) in paragraph (3), by striking ``.'' and inserting ``; 
        and''; and
            (3) by adding at the end the following new paragraph (4):
            ``(4) provide the institution with credit, for purposes of 
        satisfying the requirements of this Act, for investments in, 
        and loans to, joint ventures or other entities or projects 
        which provide benefits to distressed communities, as such term 
        is defined by the appropriate Federal financial supervisory 
        agency, whether those communities are located within or outside 
        of the service area of the regulated financial institution.''.
    (d) Special Purpose Banks.--The Community Reinvestment Act of 1977 
(12 U.S.C. 2901 et seq.) is hereby amended--
            (1) in section 803 (12 U.S.C. 2902), by inserting the 
        following new paragraph (5):
            ``(5) the term ``special purpose banks'' means a bank that 
        does not generally accept retail deposits, such as credit card 
        banks and trust banks.''; and
            (2) in section 804 (12 U.S.C. 2903) (as amended by sections 
        501(a) and 501(c) of this Act)--
                    (A) by inserting ``(a)'' before ``In connection 
                with'';
                    (B) by inserting at the end the following new 
                subsection (b):
    ``(b) In conducting assessments pursuant to subsection (a) at 
special purpose banks, each appropriate Federal financial supervisory 
agency shall take into consideration the nature of business such banks 
are involved in and develop standards under which such banks may be 
deemed to have complied with the requirements of this Act which are 
consistent with the specific nature of such businesses.''.
    (e) State Exams.--The Community Reinvestment Act of 1977 (12 U.S.C. 
2901 et seq.) is hereby amended by adding after section 809 (as added 
by section 501(b)) the following new section:
    ``Sec. 810. State Exams.--The appropriated Federal financial 
supervisory agency may accept examinations conducted by state 
supervisory agencies pursuant to comparable state community 
reinvestment laws in order to satisfy the requirements of this Act.''.

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