[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1858 Introduced in House (IH)]

  1st Session
                                H. R. 1858

 To reduce paperwork and additional regulatory burdens for depository 
                             institutions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 15, 1995

  Mr. Leach introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To reduce paperwork and additional regulatory burdens for depository 
                             institutions.

    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 ``Financial 
Institutions Regulatory Relief Act of 1995''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
            TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

                 Subtitle A--The Home Mortgage Process

Sec. 101. Transfer of RESPA regulatory authority; elimination of 
                            redundant regulators.
Sec. 102. Truth in Lending Act and RESPA comparability.
Sec. 103. Increased regulatory flexibility under the Truth in Lending 
                            Act.
Sec. 104. Reductions in RESPA regulatory burdens; clarifying 
                            amendments.
Sec. 105. Alternative disclosures for adjustable rate mortgages.
Sec. 106. Treatment of certain charges.
Sec. 107. Exemption from rescission.
Sec. 108. Tolerance; basis of disclosures.
Sec. 109. Limitation on liability.
Sec. 110. Applicability.
Sec. 111. Limitation on rescission period.
Sec. 112. Calculation of actual damages.
Sec. 113. Assignee liability.
Sec. 114. Recovery of fees.
Sec. 115. Homeownership debt counseling notification.
Sec. 116. Home Mortgage Disclosure Act.
           Subtitle B--Community Reinvestment Act Amendments

Sec. 121. Expression of congressional intent.
Sec. 122. Community Reinvestment Act exemption.
Sec. 123. Self-certification of CRA compliance.
Sec. 124. Community input and conclusive rating.
Sec. 125. Special purpose banks.
Sec. 126. Increased incentives to lending to low- and moderate-income 
                            communities.
Sec. 127. Prohibition on additional reporting under CRA.
Sec. 128. Technical amendment.
Sec. 129. Duplicative reporting.
                  Subtitle C--Consumer Banking Reforms

Sec. 131. Truth in Savings.
Sec. 132. Unauthorized electronic fund transfers.
Sec. 133. Liability for unauthorized use of credit cards.
Sec. 134. Information sharing.
Sec. 135. Electronic Funds Transfer Act clarification.
          Subtitle D--Equal Credit Opportunity Act Amendments

Sec. 141. Short title.
Sec. 142. Findings and purpose.
Sec. 143. Equal Credit Opportunity Act amendments.
Sec. 144. Fair Credit Reporting Act amendments.
Sec. 145. Incentives for self-testing.
Sec. 146. Credit scoring systems.
Sec. 147. Effective date.
              Subtitle E--Consumer Leasing Act Amendments

Sec. 151. Short title.
Sec. 152. Congressional findings and declaration of purpose.
Sec. 153. Regulations.
Sec. 154. Segregated leasing disclosures.
Sec. 155. Consumer lease advertising.
             Subtitle F--Federal Home Loan Bank Amendments

Sec. 161. Application for membership in the FHLB system.
Sec. 162. Federal Home Loan Bank external auditors.
             TITLE II--STREAMLINING GOVERNMENT REGULATIONS

                 Subtitle A--Regulatory Approval Issues

Sec. 201. Streamlined nonbanking acquisitions by well capitalized and 
                            well managed banking organizations.
Sec. 202. Streamlined bank acquisitions by well capitalized and well 
                            managed banking organizations.
Sec. 203. Eliminate bank merger act filing and approval requirements 
                            for insured depository institutions already 
                            controlled by the same holding company.
Sec. 204. Eliminate redundant approval requirement for Oakar 
                            transactions.
Sec. 205. Eliminate duplicative requirements imposed on bank holding 
                            companies under the Home Owners' Loan Act.
Sec. 206. Eliminate requirement that approval be obtained for 
                            divestitures.
Sec. 207. Eliminate unnecessary branch applications.
Sec. 208. Eliminate branch applications/requirements for ATMs and 
                            similar facilities.
Sec. 209. Eliminate requirement for approval of investments in bank 
                            premises for well capitalized and well 
                            managed banks.
Sec. 210. Eliminate unnecessary filing for officer and director 
                            appointments.
Sec. 211. Streamlining process for determining new nonbanking 
                            activities.
   Subtitle B--Streamlining of Government Regulations; Miscellaneous 
                               Provisions

Sec. 221. Eliminate the per-branch capital requirement for national 
                            banks and state member banks.
Sec. 222. Branch closures.
Sec. 223. Amendments to the Depository Institutions Management 
                            Interlocks Act.
Sec. 224. Consolidation of appraisal subcommittee.
Sec. 225. Eliminate unnecessary and duplicative recordkeeping and 
                            reporting requirements relating to loans to 
                            executive officers and permit participation 
                            in employee benefit plans.
Sec. 226. Expanded regulatory discretion for small bank examinations.
Sec. 227. Cost reimbursement.
Sec. 228. Identification of nonbank financial institution customers.
Sec. 229. Paperwork reduction review.
Sec. 230. Repeal of unnecessary reporting requirements.
Sec. 231. Daily confirmations for hold-in-custody repurchase 
                            transactions.
Sec. 232. Required regulatory review of regulations.
Sec. 233. Country risk requirements.
Sec. 234. Audit costs.
Sec. 235. Due process protections.
Sec. 236. Culpability standards for outside directors.
Sec. 237. Rules on deposit taking.
Sec. 238. Transition period for new regulations.
Sec. 239. Foreign bank applications.
Sec. 240. Duplicate examination of foreign banks.
Sec. 241. Second mortgages.
Sec. 242. OCC authority.
                      TITLE III--LENDER LIABILITY

Sec. 301. Lender liability.

            TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

                 Subtitle A--The Home Mortgage Process

SEC. 101. TRANSFER OF RESPA REGULATORY AUTHORITY; ELIMINATION OF 
              REDUNDANT REGULATORS.

    (a) Transfer of Authority.--The Real Estate Settlement Procedures 
Act (12 U.S.C. 2601 et seq.) is amended--
            (1) by striking ``Secretary'' each time it appears and 
        inserting ``Board'', except in sections 3(1)(B)(ii), 3(6) and 
        section 14 (12 U.S.C. 2602(1)(B)(ii), 2602(6) and 2612, 
        respectively); and
            (2) in section 3 by adding at the end thereof a new 
        paragraph (9) as follows:
            ``(9) the term ``Board'' means the Board of Governors of 
        the Federal Reserve System.''.
    (b) Elimination of Redundant Regulators.--The Real Estate 
Settlement Procedures Act (12 U.S.C. 2601 et seq.) is amended--
            (1) in section 19 by striking subsection (a) and inserting 
        in lieu thereof the following:
    ``(a) The Board shall prescribe regulations to carry out the 
purpose of this title. These regulations may contain such 
classifications, differentiations, or other provisions, and may provide 
for such adjustments and exceptions for any class of transactions, as 
in the judgment of the Board are necessary or proper to effectuate the 
purposes of this title, to prevent circumvention or evasion thereof, or 
to facilitate compliance therewith. Such regulations shall minimize the 
burdens and cost imposed upon creditors and shall ensure that costs, 
burdens, and complexities to consumers are reduced.''; and
            (2) by inserting after section 19 of the Real Estate 
        Settlement Procedures Act (12 U.S.C. 2617) the following:

``SEC. 20. ADMINISTRATIVE ENFORCEMENT.

    ``(a) Compliance with the requirements imposed under this subtitle 
shall be enforced under--
            ``(1) section 8 of the Federal Deposit Insurance Act, in 
        the case of--
                    ``(A) national banks, and Federal branches and 
                Federal agencies of foreign banks, by the Office of the 
                Comptroller of the Currency;
                    ``(B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, and organizations operating under 
                section 25 or 25A of the Federal Reserve Act, by the 
                Board; and
                    ``(C) banks insured by the Federal Deposit 
                Insurance Corporation (other than members of the 
                Federal Reserve System) and insured State branches of 
                foreign banks, by the Board of Directors of the Federal 
                Deposit Insurance Corporation;
            ``(2) section 8 of the Federal Deposit Insurance Act, by 
        the Director of the Office of Thrift Supervision, in the case 
        of a savings association the deposits of which are insured by 
        the Federal Deposit Insurance Corporation.
            ``(3) the Federal Credit Union Act, by the Administrator of 
        the National Credit Union Administration with respect to any 
        Federal credit union.
            ``(4) The Packers and Stockyards Act of 1921 (except as 
        provided in section 406 of that Act), by the Secretary of 
        Agriculture with respect to any activities subject to that Act.
            ``(5) the Farm Credit Act of 1971, by the Farm Credit 
        Administration with respect to any Federal land bank, Federal 
        land bank association, Federal intermediate credit bank or 
        production credit association.
The terms used in paragraph (1) that are not defined in this title or 
otherwise defined in section 3(s) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(s)) shall have the meaning given to them in section 
1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).
    ``(b) For the purpose of the exercise by any agency referred to in 
subsection (a) of its powers under any Act referred to in that 
subsection, a violation of any requirement imposed under this title 
shall be deemed to be a violation of a requirement imposed under the 
Act. In addition to its powers under any provision of law specifically 
referred to in subsection (a), each of the agencies referred to in that 
subsection may exercise, for the purpose of enforcing compliance with 
any requirement imposed under this title, any other authority conferred 
on it by law.
    ``(c) Except to the extent that the enforcement of the requirements 
imposed under this title is specifically committed to some other 
Government agency under subsection (a), the Federal Trade Commission 
shall enforce such requirements. For the purpose of the exercise by the 
Federal Trade Commission of its functions and powers under the Federal 
Trade Commission Act, a violation of any requirement imposed under this 
title shall be deemed a violation of a requirement imposed under that 
Act. All of the functions and powers of the Federal Trade Commission 
under the Federal Trade Commission Act are available to the Commission 
to enforce compliance by any person with the requirements imposed under 
this title, irrespective of whether that person is engaged in commerce 
or meets any other jurisdictional tests in the Federal Trade Commission 
Act.''.

SEC. 102. TRUTH IN LENDING AND RESPA COMPARABILITY.

    (a) Section 102 of the Truth in Lending Act (15 U.S.C. 1601) is 
amended by adding a new subsection (c) as follows:
    ``(c) The Congress also finds that the disclosure and other 
requirements related in consumer credit have become overly costly, 
burdensome, and complex to consumers and to creditors. It is also the 
purpose of this title to reduce the complexity of the disclosure 
requirements for creditors and consumers by directing the Board to 
reduce the complexity and difficulty of understanding, preparing and 
providing disclosures for credit transactions. Improvements in the 
disclosures and timing of disclosures should serve the dual purpose of 
reducing compliance errors and increasing the ability of consumers to 
understand and use the information provided in the disclosures. 
Clarifications should include the development of uniform terms to 
describe credit costs and uniform formats to arrange and provide the 
information both under this Act and other Acts affecting the consumer 
credit process.''.
    (b) Section 105 of the Truth in Lending Act (15 U.S.C. 1604) is 
amended by inserting a new subsection (e) as follows:
    ``(e) The Board shall by regulation eliminate, modify, or simplify 
any disclosure required by this title, including the content and timing 
of the disclosure, where such action will make disclosures and timing 
of disclosures required by this title uniform with other laws relating 
to the disclosure of information in connection with credit 
transactions, including the Real Estate Settlement Procedures Act. No 
additional disclosure requirements may be added as a result of this 
subsection.''.
    (c) Section 2 of the Real Estate Settlement Procedures Act (12 
U.S.C. 2602) is amended by adding to the end of subsection (a) the 
following: ``The Congress also finds that the disclosure and other 
requirements related to consumer credit, including mortgage 
transactions, have become overly costly, burdensome, and complex to 
consumers and to creditors and that changes to the required disclosures 
related to such credit must be streamlined and reduced in order to 
eliminate unnecessary cost, burdens, and complexity.''.
    (d) Section 19 of the Real Estate Procedures Act (12 U.S.C. 2617) 
(as amended by Section 101 of this Act) is amended by inserting the 
following new subsection (b) and redesignating the remaining 
subsections accordingly:
    ``(b) The Board shall by regulation eliminate, modify, or simplify 
any disclosure required by this title, including the content and timing 
of the disclosure, where such action will make disclosures and timing 
of disclosures required by this title uniform with other laws relating 
to the disclosure of information in connection with credit 
transactions, including the Truth in Lending Act. No additional 
disclosure requirements may be added as a result of this subsection.''.

SEC. 103. INCREASED REGULATORY FLEXIBILITY UNDER THE TRUTH IN LENDING 
              ACT.

    (a) Regulatory Flexibility.--Section 104 of the Truth in Lending 
Act (15 U.S.C. 1603) is amended by adding at the end the following new 
paragraph:
            ``(7) Transactions for which the Board, by regulation, 
        determines that coverage under the Act is not needed to carry 
        out the purposes of the Act.''.
    (b) Exemptive Authority.--Section 105 of the Truth in Lending Act 
(15 U.S.C. 1604) is amended by redesignating subsections (b) through 
(d) as (c) through (e) and inserting a new subsection (b) as follows:
    ``(b) Exemptive Authority.--The Board shall exempt from all or 
parts of this title any class of transactions for which, in the Board's 
judgment, coverage under all or part of this title does not provide a 
measurable benefit to consumers in the form of useful information or 
protection. In determining which classes of transactions to exempt in 
whole or in part, the Board shall consider, among other factors, the 
following:
            ``(1) The amount of the loan or closing costs and whether 
        the disclosures, right of rescission, and other provisions are 
        necessary, particularly for small loans.
            ``(2) Whether the requirements of this title complicate, 
        hinder, or make more expensive the credit process for the class 
        of transactions.
            ``(3) The status of the borrower, including, the borrowers' 
        related financial arrangements, the financial sophistication of 
        the borrower relative to the type of transaction, and the 
        importance of the credit and related supporting property to the 
        borrower.''.

SEC. 104. REDUCTIONS IN RESPA REGULATORY BURDENS; CLARIFYING 
              AMENDMENTS.

    (a) Unnecessary Disclosure.--Section 6(a) of the Real Estate 
Settlement Procedures Act (12 U.S.C. 2605), is amended to read as 
follows:
    ``(a) Disclosure to Applicant Relating to Assignment, Sale, or 
Transfer of Loan Servicing.--
            ``(1) In general.--Each person who makes a federally 
        related mortgage loan shall disclose to each person who applies 
        for any such loan, at the time of application for the loan, 
        whether the servicing of any such loan may be assigned, sold, 
        or transferred to any other person at any time while such loan 
        is outstanding.
            ``(2) Signature of applicant.--Any disclosure of the 
        information required under paragraph (1) shall not be effective 
        for purposes of this section unless the disclosure is 
        accompanied by a written statement, in such form as the 
        Secretary shall develop before the expiration of the 180-day 
        period beginning on the date of enactment, that the applicant 
        has read and understood the disclosure and that is evidenced by 
        the signature of the applicant at the place where such 
        statement appears in the application.''.
    (b) Effective Date.--This subsection shall become effective 180 
days after the date of enactment.
    (c) Second Mortgages.--Section 3(1)(A) of the Real Estate 
Settlement Procedures Act (12 U.S.C. 2602(1)(A)), is amended by 
striking ``or subordinate''.
    (d) Consistency of RESPA and Truth in Lending Act Exemption of 
Business Loans.--Section 7 of the Real Estate Settlement Procedures Act 
(12 U.S.C. 2606) is amended--
            (1) by inserting ``(a) In general.--'' before ``This Act''; 
        and
            ``(2) inserting a new subsection (b) as follows:
    ``(b) Interpretation.--In issuing regulations pursuant to Section 
19(a) of this Act, the Board shall ensure that with regard to 
subsection (a), the exemption for business credit includes all 
``business credit'' exempted from the Truth in Lending Act (15 U.S.C. 
1601) as that term has been interpreted by the Board of Governors of 
the Federal Reserve System in Section 226.3(a) of Regulation Z (12 
C.F.R. 226.3(a)) as in effect on the date of enactment.''.

SEC. 105. 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) Section 128(a) of the Truth in Lending Act (15 U.S.C. 1638(a)) 
is amended by inserting 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 a 
        historical example illustrating the effects of interest rate 
        changes implemented according to the loan program.''.

SEC. 106. CERTAIN CHARGES.

    (a) Third Party Fees.--Section 106(a) of the Truth in Lending Act 
(15 U.S.C. 1605(a)) is amended by adding after the second sentence the 
following new sentence: ``The finance charge shall not include fees and 
amounts imposed by third parties not affiliated with the creditor 
(including settlement agents, attorneys, and escrow and title 
companies) if the creditor does not expressly require the imposition of 
the charges and does not retain the charges.''.
    (b) Taxes on Security Instruments or Evidences of Indebtedness.--
Section 106(d) of the Truth in Lending Act (15 U.S.C. 1605(d)) is 
amended by adding at the end the following new paragraph:
            ``(3) Any tax levied on security instruments or on 
        documents evidencing indebtedness if the payment of such taxes 
        is a precondition for the instrument securing the evidence of 
        indebtedness.''.
    (c) Preparation of Loan Documents.--Section 106(e)(2) of the Truth 
in Lending Act (15 U.S.C. 1605(e)(2)) is amended to read as follows:
            ``(2) Fees for preparation of loan-related documents and 
        attending or conducting settlement.''.
    (d) Fees Relating to Pest Infestations, Inspections, and Hazards.--
Section 106(e)(5) of the Truth in Lending Act (15 U.S.C. 1605(e)(5)) is 
amended by inserting ``, including fees related to pest infestations, 
premises and structural inspections, and flood hazards'' before the 
period.

SEC. 107. EXEMPTIONS FROM RESCISSION.

    (a) Certain Refinancings.--Section 125(e) of the Truth in Lending 
Act (15 U.S.C. 1635(e)) is amended--
            (1) by striking ``or'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting instead ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(5) a transaction, other than a mortgage referred to in 
        section 103(aa), which--
                    ``(A) is secured by a first lien, in any amount; 
                and
                    ``(B) constitutes a refinancing or consolidation of 
                an existing extension of credit.''.
    (b) Technical and Conforming Amendment.--Section 125(e)(2) of the 
Truth in Lending Act (15 U.S.C. 1635(e)(2)) is amended by inserting ``, 
other than a transaction described in subsection (e)(5),'' after ``a 
refinancing or consolidation (with no new advances).''.

SEC. 108. TOLERANCES; BASIS OF DISCLOSURES.

    (a) Tolerances for Accuracy.--Section 106 of the Truth in Lending 
Act (15 U.S.C. 1605) is amended by adding at the end the following new 
subsection:
    ``(f) Tolerance for Accuracy.--In connection with credit 
transactions not under an open end credit plan that are secured by real 
property or a dwelling, the disclosure of the finance charge and other 
disclosures affected by any finance charge shall be treated as being 
accurate for purposes of this title if the amount disclosed as the 
finance charge does not vary from the actual finance charge by more 
than an amount equal to one-half of the numerical tolerance 
corresponding to, and generated by, the tolerance provided by section 
107(c) with respect to the annual percentage rate.''.
    (b) Basis of Disclosure for Per Diem Interest.--Section 121(c) of 
the Truth in Lending Act (15 U.S.C. 1631(c)) is amended by adding at 
the end the following new sentence: ``In the case of any consumer 
credit transaction a portion of the interest on which is determined on 
a per diem basis and is to be collected upon the consummation of such 
transaction, any disclosure with respect to such portion of interest 
shall be deemed to be accurate for purposes of this title if the 
disclosure is based on information actually known to the creditor at 
the time that the disclosure documents are being prepared for the 
consummation of the transaction.''.

SEC. 109. LIMITATION ON LIABILITY.

    (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by adding at the end the following new 
section:

``SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.

    ``(a) Limitations on Liability for Disclosures Relating to Certain 
Fees and Charges Other Than Finance Charges.--
            ``(1) In general.--For transactions consummated before the 
        date of the enactment of the Financial Institutions Regulatory 
        Relief Act of 1995, a creditor or any assignee of a creditor 
        shall have no civil, administrative, or criminal liability 
        under this title for, and a consumer shall have no extended 
        rescission rights under section 125(f) with respect to, the 
        creditor's treatment, for disclosure purposes, of--
                    ``(A) taxes described in section 106(d)(3);
                    ``(B) fees and amounts described in section 106(e) 
                (2) and (5) and third party fees and amounts described 
                in section 106(a); and
                    ``(C) delivery charges imposed by a creditor.
            ``(2) Exceptions.--Subsection (a) shall not apply to--
                    ``(A) any individual action or counterclaim brought 
                under this title--
                            ``(i) which was filed before October 1, 
                        1994; and
                            ``(ii) the pleadings in which (as filed 
                        before such date) allege improper disclosure of 
                        charges described in paragraph (1), (2), or (3) 
                        of subsection (a);
                    ``(B) any class action brought under this title--
                            ``(i) for which a class was certified 
                        before October 1, 1994; and
                            ``(ii) the pleadings in which (as filed 
                        before such date) allege improper disclosure of 
                        charges described in paragraph (1), (2), or (3) 
                        of subsection (a);
                    ``(C) the named individual plaintiffs in any class 
                action brought under this title--
                            ``(i) which was filed before October 1, 
                        1994; and
                            ``(ii) the pleadings in which (as filed 
                        before such date) allege improper disclosure of 
                        charges described in paragraph (1), (2), or (3) 
                        of subsection (a); or
                    ``(D) any consumer credit transaction with respect 
                to which a timely notice of rescission was sent to the 
                creditor before October 1, 1994.
    ``(b) Exemption From Liability for Finance Charge Disclosures 
Within Tolerance Limits.--
            ``(1) In general.--In the case of any consumer credit 
        transaction subject to this title, including a transaction 
        consummated before the date of the enactment of the Financial 
        Institutions Regulatory Relief Act of 1995, no creditor or 
        assignee with respect to such transaction shall have any civil, 
        administrative, or criminal liability under this title for, and 
        no consumer shall have extended rescission rights under section 
        125 by reason of, any disclosure relating to the finance charge 
        imposed with respect to such transaction if the amount or 
        percentage actually disclosed--
                    ``(A) may be treated as accurate pursuant to 
                section 106(f), or
                    ``(B) is greater than the amount or percentage 
                required to be disclosed under this title.
            ``(2) Exceptions.--Paragraph (1) shall not apply to--
                    ``(A) any individual action or counterclaim brought 
                under this title which was filed before October 1, 
                1994;
                    ``(B) any class action brought under this title for 
                which a class was certified before October 1, 1994;
                    ``(C) the named individual plaintiffs in any class 
                action brought under this title which was filed before 
                October 1, 1994; or
                    ``(D) any consumer credit transaction with respect 
                to which a timely notice of rescission was sent to the 
                creditor before October 1, 1994.''.
    (b) Clerical Amendment.--The table of sections for chapter 2 of the 
Truth in Lending Act is amended by inserting after the item relating to 
section 138 the following new item:

``Sec. 139. Certain limitations on liability.''.

SEC. 110. APPLICABILITY.

    Except as otherwise provided in section 109, the amendments made by 
sections 106, 107, 108, 109, 110, 111, 112, 113 shall apply to all 
consumer credit transactions consummated on or after the date of 
enactment of this Act, except that the amendments made by subsections 
(a) and (b) of section 107 shall apply to all extensions of credit with 
respect to which rescission rights have not been asserted as of January 
1, 1995.

SEC. 111. LIMITATION ON RESCISSION PERIOD.

    Section 125(f) of the Truth in Lending Act (15 U.S.C. 1635(f)) is 
amended by adding at the end the following sentences: ``The expiration 
of the right of rescission pursuant to this subsection shall be 
absolute and no consumer may assert rescission, affirmatively or as a 
defense, in any action in any State or Federal court after the earlier 
of the end of the 3-year period beginning on the date of the 
consummation of the transaction or the sale of the property securing 
the loan or other extension of credit, except as otherwise provided in 
the preceding sentence. This subsection shall supersede any State law 
which is inconsistent with any provision of this subsection.''.

SEC. 112. CALCULATION OF ACTUAL DAMAGES.

    Paragraph (1) of section 130(a) of the Truth in Lending Act (15 
U.S.C. 1640(a)) is amended to read as follows:
            ``(1) Any actual damages sustained by such person as a 
        result of the failure (to the extent the person demonstrates 
        reliance on the inaccurate disclosure which prevented the 
        person from accepting better credit terms actually available to 
        the person from another creditor) and the amount of such 
        damages shall be the difference between the finance charges 
        actually paid and the finance charges that would have been paid 
        over the same period under credit terms applicable with respect 
        to credit actually available to the person from another 
        creditor.''.

SEC. 113. ASSIGNEE LIABILITY.

    (a) Violations Apparent on the Face of Transaction Documents.--
Section 131(a) of the Truth in Lending Act (15 U.S.C. 1641(a)) is 
amended to read as follows:
    ``(a) Liability of Assignee for Apparent Violations.--
            ``(1) In general.--Except as otherwise specifically 
        provided in this title, any civil action against a creditor for 
        a violation of this title, and any proceeding under section 108 
        against a creditor, with respect to a consumer credit 
        transaction may be maintained against any assignee of such 
        creditor only if--
                    ``(A) the violation for which such action or 
                proceeding is brought is apparent on the face of the 
                disclosure statement provided in connection with such 
                transaction pursuant to this title; and
                    ``(B) the assignment to the assignee was voluntary.
            ``(2) Violation apparent on the face of the disclosure 
        described.--For the purpose of this section, a violation is 
        apparent on the face of the disclosure statement if--
                    ``(A) the disclosure can be determined to be 
                incomplete or inaccurate from the face of the 
                disclosure statement; or
                    ``(B) the disclosure does not use the terms or 
                format required to be used by this title.''.
    (b) Servicer Not Treated as Assignee.--Section 131 of the Truth in 
Lending Act (15 U.S.C. 1641) is amended by adding at the end the 
following new subsection:
    ``(d) Treatment of Servicer.--
            ``(1) In general.--A servicer of a consumer obligation 
        arising from a consumer credit transaction shall not be treated 
        as an assignee of such obligation for purposes of this section 
        unless the servicer is the owner of the obligation.
            ``(2) Servicer not treated as owner on basis of assignment 
        for administrative convenience.--A servicer of a consumer 
        obligation arising from a consumer credit transaction shall not 
        be treated as the owner of the obligation for purposes of this 
        section on the basis of an assignment of the obligation from 
        the creditor or another assignee to the servicer solely for the 
        administrative convenience of the servicer in servicing the 
        obligation.
            ``(3) Servicer defined.--For purposes of this subsection, 
        the term `servicer' has the same meaning as in section 6(i)(2) 
        of the Real Estate Settlement Procedures Act of 1974.''.

SEC. 114. RECOVERY OF FEES.

    Section 125(b) of the Truth in Lending Act (15 U.S.C. 1635) is 
amended--
            (a) in the first sentence, by inserting ``, except any 
        charge for a appraisal report or credit report'' after ``other 
        charge''; and
            (b) in the second sentence, by striking ``otherwise'' and 
        inserting ``as otherwise required under this subsection''.

SEC. 115. 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 repealed.

SEC. 116. HOME MORTGAGE DISCLOSURE ACT.

    (a) Section 309 of the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2808) is amended--
            (1) in the second sentence, by striking ``$10,000,000'' and 
        inserting ``$50,000,000''; and,
            (2) by inserting at the end the following new sentence: 
        ``The Board may also, by regulation, exempt from the provisions 
        of this Act institutions specified in section 303(2)(A) which 
        have total assets as of their last full fiscal year of 
        $50,000,000 or greater where the burden of complying with this 
        Act on such institutions outweighs the usefulness of the 
        information required to be disclosed. The exemptions provided 
        under this section shall not be applicable to an institution 
        which the Board, by order, has found a reasonable basis to 
        believe is not fulfilling its obligations to serve the housing 
        needs of the communities and neighborhoods in which it located. 
        An institution subject to such an order shall be required to 
        comply with the requirements of this Act for loans made after 
        the time that the order is issued at such time and for such 
        period as the Board deems appropriate. The dollar amount in 
        this section shall be adjusted annually after December 31, 
        1994, by the annual percentage increase in the Consumer Price 
        Index for Urban Wage Earners and Clerical Workers published by 
        the Bureau of Labor Statistics.''.
    (b) Section 304 of the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2803) is amended by adding the following new subsection (m) at 
the end as follows:
    ``(m) Opportunity to Reduce Compliance Burden.--
            ``(1) A depository institution will have satisfied the 
        public availability requirements of subsection (a) if such 
        institution keeps the information required under that 
        subsection at its home office and provides notice at the branch 
        locations specified in such subsection that such information is 
        available upon request from the home office of the institution. 
        A home office of the depository institution receiving a request 
        for such information pursuant to this subsection shall provide 
        the information pertinent to the location of the branch in 
        question within 15 days of the receipt of the written request.
            ``(2) In complying with paragraph (1), a depository 
        institution may provide the individual requesting such 
        information, at the institution's choice, with--
                    ``(A) a paper copy of the information requested; or
                    ``(B) if acceptable to the individual, the 
                information via a form of electronic medium, such as 
                computer disc.''.

           Subtitle B--Community Reinvestment Act Amendments

SEC. 121. EXPRESSION OF CONGRESSIONAL INTENT.

    Subsection (b) of Section 802 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2901) is amended to read as follows:
    ``(b) It is the purpose of this title to require each appropriate 
Federal financial supervisory agency to use its authority, when 
examining financial institutions, to encourage such institutions to 
help meet the credit needs of the local communities in which they are 
chartered consistent with the safe and sound operation of such 
institutions. When examining financial institutions, a supervisory 
agency shall not impose additional burden, recordkeeping, or reporting 
upon such institutions.''.

SEC. 122. COMMUNITY REINVESTMENT ACT EXEMPTION.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended by adding at the end the following new section:

``SEC. 808. EXAMINATION EXEMPTION.

    ``A regulated financial institution shall not be subject to the 
examination requirements of this title or any regulations issued 
hereunder if--
            ``(1) the main office (and each branch of such institution) 
        is located in a town, political subdivision, or other unit of 
        general local government of a State that has a population of 
        not more than 30,000 persons and which is not part of a 
        metropolitan statistical area; and
            ``(2) the institution and its parent bank holding company 
        have aggregate assets of not more than $100,000,000.
The dollar amount in this section shall be adjusted annually after 
December 31, 1994, by the annual percentage increase in the Consumer 
Price Index for Urban Wage Earners and Clerical Workers published by 
the Bureau of Labor Statistics.''.

SEC. 123. SELF-CERTIFICATION OF CRA COMPLIANCE.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903) is amended by adding at the end the following new subsection (c):
    ``(c) Self-Certification of CRA Compliance.--
            ``(1) Certification.--In lieu of being evaluated under 
        section 806A and receiving a written evaluation under section 
        807, a qualifying financial institution may choose to self-
        certify to the appropriate Federal financial supervisory agency 
        that it is in compliance with the goals of this Act.
            ``(2) Qualifying institution.--A financial institution 
        shall be deemed a `qualifying institution' for purposes of this 
        Act if it has--
                    ``(A) no more than $250 million in assets;
                    ``(B) not been found to have engaged in a pattern 
                or practice of illegal discrimination under the Fair 
                Housing Act or the Equal Credit Opportunity Act for the 
                preceding 5-year calendar period; and
                    ``(C) a current CRA rating of `satisfactory' or 
                `outstanding'.
        The dollar amount in this paragraph shall be adjusted annually 
        after December 31, 1994, by the annual percentage increase in 
        the Consumer Price Index for Urban Wage Earners and Clerical 
        Workers published by the Bureau of Labor Statistics.
            ``(3) Public notice.--A qualifying institution must 
        maintain in every branch a public notice stating that the 
        institution has self-certified that it is satisfactorily 
        helping to meet the credit needs of its community, and that it 
        maintains:
                    ``(A) a public file at its main office which 
                contains a copy of its self-certification to its 
                appropriate regulator;
                    ``(B) a map delineating its community;
                    ``(C) a list of the types of credit and services 
                that it provides to its community;
                    ``(D) such other information that the institution 
                believes demonstrates its record of helping to meet the 
                credit needs of its community; and
                    ``(E) every public comment or letter to the 
                institution (and any response by the institution) 
                received within the previous two year-period about its 
                record of helping to meet the credit needs of its 
                community.
        The institution shall maintain a public file at its main office 
        containing the contents described in this paragraph.
            ``(4) Rating.--A qualifying institution shall be deemed to 
        have a rating of a `satisfactory record of meeting community 
        credit needs' for the purposes of this section and section 
        806A(c). Each Federal financial supervisory agency shall 
        publish in the Federal Register once each month a list of 
        institutions that have self-certified during the previous 
        month. Publication of the name of the institution in the 
        Federal Register as having self-certified shall constitute 
        disclosure of the rating of the institution to the public under 
        sections 806A and 807 of this Act.
            ``(5) Regulatory review.--During each examination for 
        safety and soundness, a qualifying institution's supervisory 
        agency shall, as part of its loan review, assess whether the 
        institution's basis for its self-certification is reasonable. 
        If the agency determines that the institution's self-
        certification is unreasonable, then the agency shall schedule 
        an examination of the institution for the purpose of assessing 
        the institution's record of helping to meet the credit needs of 
        its community. If that assessment results in a less than 
        `satisfactory' rating, then the agency shall revoke the 
        institution's self-certification and substitute a written 
        evaluation as provided under section 807. An institution that 
        has had its self-certification revoked shall not be permitted 
        to self-certify pursuant to this subsection for five years from 
        the year of revocation. At any time thereafter, if the 
        institution meets the requirements for self-certification, it 
        may again opt to self-certify.''.

SEC. 124. COMMUNITY INPUT AND CONCLUSIVE RATING.

    (a) Conforming Amendment.--Section 804(a) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by inserting 
``conducted in accordance with section 806A,'' after ``financial 
institution,''.
    (b) Community Input and Conclusive Rating.--The Community 
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended by 
inserting after section 806 a new section 806A as follows:

``SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.

    ``(a) Publication of Exam Schedule and Opportunity for Comment.--
Each appropriate Federal financial supervisory agency shall publish in 
the Federal Register, thirty days prior to the beginning of a calendar 
quarter, a listing of institutions scheduled for examination pursuant 
to this Act during that calendar quarter, and provide opportunity for 
written comments from the community on the performance, under this Act, 
of each institution scheduled for examination. Such comments shall be 
received by the appropriate Federal financial supervisory agency no 
later than 30 days after the commencement of such calendar quarter. The 
agency shall provide a copy of such comments to the institution.
    ``(b) Evaluation.--The appropriate Federal financial supervisory 
agency shall evaluate the institution in accordance with the standards 
set forth in section 804 of this Act, and shall prepare and publish a 
written evaluation of the institution as required under section 807 of 
this Act.
    ``(c) Reconsideration of Rating.--A reconsideration of an 
institution's rating, referred to in section 807(b)(1)(C), may be 
requested within 30 days of the rating's disclosure to the public. Any 
such request must be made in writing and filed with the appropriate 
Federal financial supervisory agency, and may be filed by the 
institution or a member of the community. Any such request shall be 
based on significant issues of a substantive nature which are relevant 
to the delineated community of the institution, and in the case of a 
request by a member of the community shall be limited to issues 
previously raised in comments submitted pursuant to subsection (a). The 
appropriate Federal financial supervisory agency shall complete any 
requested reconsideration within 30 days of the filing of the request.
    ``(d) Conclusive Rating.--An institution's rating becomes 
`conclusive' on the later of--
            ``(1) 30 days after the rating is disclosed to the public; 
        or
            ``(2) the completion of any requested reconsideration by 
        the Federal financial supervisory agency.
An institution's rating shall be the conclusive assessment of its 
record of meeting the credit needs of its community for purposes of 
section 804 of this Act until the institution's next rating, developed 
pursuant to an examination, becomes conclusive. Institutions which have 
received a `satisfactory' or `outstanding' rating shall be deemed to 
have satisfied section 804 of this Act. Notwithstanding any other 
provision of law, nothing herein shall be construed to grant a cause of 
action to any person.''.

SEC. 125. SPECIAL PURPOSE BANKS.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended--
            (1) in section 803 (12 U.S.C. 2902), by inserting at the 
        end thereof 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), by inserting after 
        subsection (c) (as added by section 122 of this title):
    ``(d) In conducting assessments pursuant to this section as 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 for such businesses.''.

SEC. 126. INCREASED INCENTIVES TO LENDING TO LOW- AND MODERATE-INCOME 
              COMMUNITIES.

    Section 804(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903(a)) is amended--
            (1) in paragraph (1), by striking ``; and'' at the end and 
        inserting;
            (2) in paragraph (2), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) provide the institution with credit, for purposes of 
        satisfying the requirements of this Act, for investments in, 
        and loans to--
                    ``(A) minority depository institutions and women's 
                depository institutions (as defined in section 808(b)); 
                and
                    ``(B) 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 minority or women's depository institutions, or 
        those communities, are located within or outside of the service 
        area of the regulated financial institution.''.

SEC. 127. PROHIBITION ON ADDITIONAL REPORTING UNDER CRA.

    Section 806 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2905) is amended to read as follows:

``SEC. 806. REGULATIONS.

    ``Regulations to carry out the purposes of this title shall be 
published by each appropriate Federal financial supervisory agency. 
Such regulations and any policy statements, commentary, examiner 
guidance, or other supervisory material shall not impose any additional 
recordkeeping on a financial institution. No loan data may be required 
to be collected and reported by a financial institution and no such 
data may be made public by any Federal financial supervisory agency 
under this title.''.

SEC. 128. TECHNICAL AMENDMENT.

    Section 807(b)(1)(B) of the Community Reinvestment Act (12 U.S.C. 
2906) is amended by striking ``the information'' and inserting in its 
place ``In the case of a regulated financial institution that maintains 
domestic branches in 2 or more States, the information''.

SEC. 129. DUPLICATIVE REPORTING.

    Section 10(g) of the Federal Home Loan Bank Act (12 U.S.C. 1430(g)) 
is amended by adding at the end thereof the following new paragraph 
(3):
            ``(3) Special rule.--This subsection shall not apply to 
        members receiving a grade of `outstanding' or `satisfactory' 
        under section 807 of the Community Reinvestment Act of 1977.''.

                  Subtitle C--Consumer Banking Reforms

SEC. 131. TRUTH IN SAVINGS.

    (a) Section 262 of the Truth in Savings Act (12 U.S.C. 4301) is 
amended to read as follows:

``SEC. 262. PURPOSE.

    ``It is the purpose of this Act to ensure that consumers can make a 
meaningful comparison between the competing claims of depository 
institutions with regard to deposit accounts by requiring that 
institutions offering interest-bearing accounts pay interest on the 
full amount of principal each day in a consumer deposit account at the 
rate agreed to be paid by the institution.''.
    (b) Section 263 is amended to read as follows:

``SEC. 263. PROHIBITION ON MISLEADING OR INACCURATE ADVERTISEMENTS AND 
              DISCLOSURES.

    ``No depository institution or deposit broker shall make any 
advertisement, announcement, solicitation or disclosure relating to a 
deposit account that is inaccurate or misleading or that misrepresents 
its deposit contracts.''.
    (c) Sections 264, 265, and 266 of the Truth in Savings Act (12 
U.S.C. 4302, 4303, 4304, and 4305, respectively) are hereby repealed.
    (d) Section 267 of the Truth in Savings Act (12 U.S.C. 4306) is 
redesignated as Sec. 263.
    (e) Section 268 of the Truth in Savings Act (12 U.S.C. 4307) is 
hereby repealed.
    (f) Section 269 of the Truth in Savings Act (12 U.S.C. 4308) is 
redesignated as Sec. 264 and is amended to read as follows:

``SEC. 264. REGULATIONS.

    ``(a) In General.--The Board, after consultation with each agency 
referred to in section 265(a) and public notice and opportunity for 
comment, shall prescribe regulations to carry out the purpose and 
provisions of this title.
    ``(b) Effective Date of Regulations.--The provisions of this 
subtitle shall not apply with respect to any depository institution 
before the effective date of regulations prescribed by the Board under 
this subsection.''.
    (f) Section 270 of the Truth in Savings Act (12 U.S.C. 4309) is 
redesignated as Sec. 265.
    (g) Sections 271 and 273 of the Truth in Savings Act (12 U.S.C. 
4310 and 4312) are hereby repealed.
    (h) Section 272 of the Truth in Savings Act (12 U.S.C. 4311) is 
redesignated as Sec. 266.
    (i) Section 274 of the Truth in Savings Act (12 U.S.C. 4313) is 
redesignated as Sec. 267 and is amended to read as follows:

``SEC. 267. DEFINITIONS.

    ``For the purposes of this chapter--
            ``(1) Accounts.--The term `account' means any account 
        intended for use by and generally used by a consumer primarily 
        for personal, family, or household purposes that is offered by 
        a depository institution into which a customer deposits funds, 
        including demand deposits, time accounts, negotiable order of 
        withdrawal accounts, and share draft accounts.
            ``(2) Depository institution.--The term `depository 
        institution' has the meaning given such term in clauses (i) 
        through (vi) of section 19(b)(1)(A) of the Federal Reserve Act.
            ``(3) Interest.--The term `interest' includes dividends 
        paid with respect to share draft accounts which are accounts 
        within the meaning of paragraph (1).
            ``(4) Board.--The term `Board' means the Board of Governors 
        of the Federal Reserve System.''.

SEC. 132. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.

    (a) Section 909(a)(1) of the 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''.
    (b) Section 909 of the Electronic Fund Transfer Act (15 U.S.C. 
1693g) is amended by adding at the end the following new subsections--
    ``(f) Notwithstanding any provision of subsection (a) or subsection 
(b)--
            ``(1) a financial institution may request that a consumer 
        who alleges an unauthorized electronic fund transfer involving 
        the consumer's account provide reasonable cooperation in 
        connection with the financial institution's investigation of 
        the alleged unauthorized electronic fund transfer; and
            ``(2) the consumer shall remain liable for the amount of 
        the alleged unauthorized electronic fund transfer if the 
        consumer fails or refuses to provide such cooperation, unless 
        the financial institution otherwise has information which 
        confirms that the electronic fund transfer was unauthorized.
    ``(g) Notwithstanding any provision of subsection (a) or subsection 
(b), a consumer who authorizes a person to use the consumer's access 
device may be held liable by the financial institution for all 
electronic fund transfers made by such person using such access device 
prior to the consumer revoking the authorization and notifying the 
financial institution of the revocation in accordance with procedures 
reasonably established by the financial institution for such a 
revocation of authority, as more specifically provided by the Board in 
regulations prescribed under this title.''.

SEC. 133. 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);
            (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 transmission 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.'';
        and inserting after paragraph (3) (as so redesignated by 
        paragraph (1) of this section):
            ``(4) Notwithstanding any other provision of this 
        subsection or subsection (b)--
                    ``(A) a card issuer may request that a cardholder 
                who alleges unauthorized use of his or her credit card 
                provide reasonable cooperation in connection with the 
                card issuer's investigation of the alleged unauthorized 
                use; and
                    ``(B) the cardholder shall remain liable for the 
                amount of the alleged unauthorized use if the 
                cardholder fails or refuses to provide such 
                cooperation, unless the card issuer otherwise has 
                information which clearly establishes the unauthorized 
                use.
            ``(5) Notwithstanding any other provision of this 
        subsection or subsection (b), a cardholder who authorizes a 
        person to use the cardholder's credit card may be held liable 
        by the card issuer for all extensions of credit which are 
        obtained by such person using such credit card prior to the 
        cardholder revoking the authorization and notifying the card 
        issuer of the revocation in accordance with procedures 
        reasonably established by the card issuer for such a revocation 
        of authority, as more specifically provided by the Board in 
        regulations prescribed under this title.''.

SEC. 134. INFORMATION SHARING.

    Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new subsection:
    ``(s) Customer Access to Products.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any depository institution or any affiliate or subsidiary 
        thereof may share or exchange information or otherwise transfer 
        information between or among themselves without any restriction 
        or limitation if it is clearly and conspicuously disclosed that 
        the information may be communicated among such persons and the 
        consumer is given the opportunity, prior to the time that the 
        information is initially communicated, to direct that such 
        information not be communicated among such persons.
            ``(2) Definition.--For purposes of this subsection, 
        `information' means any and all data, records, or other 
        information and material obtained or maintained by any 
        depository institution or any affiliate or subsidiary thereof 
        in the ordinary course of its business that relates in any way 
        to a person (as that term is defined in 15 U.S.C. 1681a(b)) who 
        applies for, maintains or has maintained an account or credit 
        relationship with or applied for, purchased or obtained other 
        products or services from any depository institution or any 
        affiliate or subsidiary thereof, regardless of the source or 
        manner in which the information is obtained or furnished.
            ``(3) Rule of construction.--Any depository institution or 
        any affiliate or subsidiary thereof relying on this subsection 
        shall not be deemed to be a consumer reporting agency, user or 
third party, and the information itself shall not constitute a consumer 
report, within the meaning of Fair Credit Reporting Act or other 
similar law.''.

SEC. 135. ELECTRONIC FUND TRANSFER ACT CLARIFICATION.

    (a) Section 903(1) of the Electronic Fund Transfer Act (15 U.S.C. 
1693a(1)) is amended by inserting before the semicolon the following: 
``, but such term does not include a card or device that a person may 
use to pay for transactions through use of value stored on the card or 
device itself, except for those transactions where such card or device 
is actually used to access an account to effect such transaction''.
    (b) Section 903(2) of the Electronic Fund Transfer Act (15 U.S.C. 
1693a(2)) is amended by inserting before the semicolon the following: 
``and does not include any value which is stored on a card or device 
itself that enables a person to pay for transactions through use of 
that stored value''.

          Subtitle D--Equal Credit Opportunity Act Amendments

SEC. 141. SHORT TITLE.

    This subtitle may be cited as the Equal Credit Opportunity Act 
Amendments of 1995.

SEC. 142. FINDINGS AND PURPOSE.

    (a) The Congress finds that both the Equal Credit Opportunity Act 
(15 U.S.C. 1691, et seq.) and the Fair Credit Reporting Act (15 U.S.C. 
1681, et seq.) contain requirements that applicants for consumer credit 
be given certain information in the event that adverse action is taken 
on the application. These requirements differ in both scope and content 
and for that reason are confusing to both the consumer who receives the 
information and the party required to furnish the information.
    (b) It is the purpose of this Act to combine and simplify the 
adverse action notification requirements of the Equal Credit 
Opportunity Act and the Fair Credit Reporting Act regarding 
applications for consumer credit and to make the information that is 
required to be furnished more understandable.

SEC. 143. EQUAL CREDIT OPPORTUNITY ACT AMENDMENTS.

    (a) Section 701(d)(2)(B) of the Equal Credit Opportunity Act (15 
U.S.C. 1691(d)(2)(B)) is amended to read as follows:
                    ``(B) Giving written notification of adverse action 
                which discloses--
                            ``(i) the applicant's right to a statement 
                        of reasons within thirty days after receipt by 
                        the creditor of a request made within sixty 
                        days after such notification;
                            ``(ii) if credit is denied or the charge 
                        for such credit is increased either wholly or 
                        partly because of information contained in a 
                        consumer report from a consumer reporting 
                        agency, that fact and the name and address of 
                        the consumer reporting agency making the 
                        report;
                            ``(iii) if credit is denied or the charge 
                        therefor is increased either wholly or partly 
                        because of information obtained from a person 
                        other than a consumer reporting agency bearing 
                        upon the consumer's credit worthiness, credit 
                        standing, credit capacity, character, general 
                        reputation, personal characteristics or mode of 
                        living, that fact and the right to receive 
                        disclosure of the nature of the information so 
                        received upon receipt of the consumer's written 
                        request therefor within sixty days after 
                        learning of such adverse action; and
                            ``(iv) the identity of the person or office 
                        from which such notification may be obtained.
                Such statement of reasons may be given orally if the 
                written notification advises the applicant of his right 
                to have the statement of reasons confirmed in writing 
                on written request.''.
    (b) Paragraph 701(d)(3) of the Equal Credit Opportunity Act (15 
U.S.C. 1691(d)(3)) is amended by striking the period at the end and 
adding the following: ``and, to the extent applicable, the name and 
address of the consumer reporting agency identified in accordance with 
the requirements of subsection (d)(3)(ii) and a statement of the right 
to obtain disclosure of the nature of the information upon which 
adverse action was taken as required by subsection (d)(3)(iii).''.
    (c) Section 706 of the Equal Credit Opportunity Act (15 U.S.C. 
1691e) is amended by adding at the end the following new subsection:
    ``(e) No person shall be held liable for any violation of 
subsection 701(d) hereof if he shows by a preponderance of the evidence 
that at the time of the alleged violation he maintained reasonable 
procedures to assure compliance with the provisions of the 
subsection.''.

SEC. 144. FAIR CREDIT REPORTING ACT AMENDMENTS.

    (a) Section 615(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681m(a)) is amended by striking ``credit or'' each time such term 
appears.
    (b) Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) 
is amended by striking subsection (b) and redesignating subsection (c) 
as subsection (b).
    (c) Section 615(b) (as redesignated by this section) of the Fair 
Credit Reporting Act (15 U.S.C. 1681m(b)) is amended by striking 
``subsections (a) and (b)'' and inserting ``subsection (a)''.

SEC. 145. INCENTIVES FOR SELF-TESTING.

    (a) Equal Credit Opportunity.--The Equal Credit Opportunity Act (15 
U.S.C. 1691 et seq.) is amended--
            (1) by inserting after section 704 the following new 
        section:

``SEC. 704A. SELF-TESTING ENHANCEMENT.

    ``Whenever a creditor conducts, or authorizes an independent third 
party to conduct, a test or review of the creditor's lending or any 
part of its lending operations in order to determine the level or 
effectiveness of compliance with this Act by the creditor, then any 
report or results of such a test or review may not be reviewed, 
obtained, examined or otherwise acquired or used by any applicant in 
any proceeding or civil action brought under this Act.'';
            (2) in section 706(g), by inserting the following new 
        language after the 2d sentence: ``No agency shall refer a 
        matter to the Attorney General if the creditor has already 
        identified the matter as a possible violation of the Equal 
        Credit Opportunity Act as the result of internal review, self-
        testing, compliance review or other audit or review procedure 
        instituted by the creditor to determine compliance with the 
        Act. No provision of this section shall be construed as 
        limiting the authority of the agency to enforce the provisions 
        of this Act under any other provision of law.''; and
            (3) in section 706(k), by adding at the end the following: 
        ``No agency referred to in paragraph (1), (2), or (3) of 
        section 704(a) shall notify the Secretary of Housing and Urban 
        Development or the applicant of a violation of the Equal Credit 
        Opportunity Act or of the Fair Housing Act if the creditor has 
        already identified the matter as a possible violation of either 
        of those Acts as a result of internal review, self-testing, 
        compliance review or other audit or review procedure instituted 
        by the creditor to determine compliance with the Act. No 
        provisions of this section shall be construed as limiting the 
        authority of the agency to enforce the provisions of this Act 
        under any other provision of law.''.
    (b) Fair Housing.--The Fair Housing Act (42 U.S.C. 3601 et seq.) is 
amended by adding the following:

``SEC. 814A. SELF-TESTING ENHANCEMENT.

    ``Whenever any person conducts, or authorizes an independent third 
party to conduct, a test or review of that person's residential real 
estate or real estate-related activities or any part thereof in order 
to determine the level or effectiveness of compliance with this Act by 
the person, then any report or results of such a test or review may not 
be reviewed, obtained, examined or otherwise acquired or used by the 
applicant, aggrieved party, or complainant in any proceeding or civil 
action brought under this Act.''.

SEC. 146. CREDIT SCORING SYSTEMS.

    Section 701 of the Equal Credit Opportunity Act (15 U.S.C. 1691) is 
amended by adding at the end the following new subsection:
    ``(f) A creditor shall be deemed to be in compliance with 
subsection (a) with respect to any credit decision made by the creditor 
which is based solely on the use of an empirically derived, 
demonstrably and statistically sound, credit scoring system, as defined 
by the Board in regulations prescribed under this title, if such system 
does not utilize any category protected under subsection (a) or use as 
a factor in such system any criterion which is so directly associated 
with such a category as to be the functional equivalent of such a 
category. Nothing in this subsection shall preclude a creditor from 
using age as a factor in such a system as otherwise permitted under 
this title.''.

SEC. 147. EFFECTIVE DATE.

    This Act shall take effect 270 days after enactment. The Board of 
Governors of the Federal Reserve System shall promulgate regulations to 
implement this Act at least 90 days before its effective date.

              Subtitle E--Consumer Leasing Act Amendments

SEC. 151. SHORT TITLE.

    This subtitle may be cited as the Consumer Leasing Act Amendments 
of 1995.

SEC. 152. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE.

    (a) The Congress finds that competition among the various financial 
institutions and other firms engaged in the business of consumer 
leasing is greatest when there is informed use of leasing. The informed 
use of leasing results from an awareness of the cost thereof 
by consumers. It is the purpose of this subchapter to assure a simple, 
meaningful disclosure of leasing terms so that the consumer will be 
able to compare more readily the various leasing terms available to him 
and avoid the uninformed use of leasing, and to protect the consumer 
against inaccurate and unfair leasing practices.
    (b) The Congress also finds that there has been a continued trend 
toward leasing automobiles and other durable goods for consumer use as 
an alternative to installment credit sales and that leasing product 
advances have occurred such that lessors have been unable to provide 
consistent industry-wide disclosures to fully account for the 
competitive progress that has occurred. To provide for adequate cost 
disclosures that reflect the marketplace without impairing competition 
and the development of new leasing products it is the purpose of this 
subchapter to provide the Board with the regulatory authority to assure 
a simplified, meaningful definition and disclosure of the terms of 
certain leases of personal property for personal, family, or household 
purposes so as to enable the lessee to compare more readily the various 
lease terms available to the lessee, enable comparison of lease terms 
with credit terms where appropriate and to assure meaningful and 
accurate disclosures of lease terms in advertisements.

SEC. 153. REGULATIONS.

    Chapter 5 of the Consumer Credit Protection Act is amended by 
adding at the end the following new section:

``SEC. 187. REGULATIONS.

    ``(a) In General.--The Board shall write regulations or staff 
commentary, if appropriate, to update and clarify the requirements and 
definitions for lease disclosures, contracts, and any other specific 
issues related to consumer leasing which would carry out the purposes 
of the Consumer Leasing Act, to prevent its circumvention, and to 
facilitate compliance with its requirements. The regulations may 
contain classifications and differentiations and may provide for 
adjustments and exceptions for any class of transaction.
    ``(b) Model Disclosures.--The Board shall publish model disclosure 
forms and clauses to facilitate compliance with the disclosure 
requirements and to aid the consumer in understanding the transaction. 
In designing forms, the Board shall consider the use by lessors of data 
processing or similar automated equipment. Use of the models shall be 
optional. A lessor who properly uses the material aspects of the models 
shall be deemed to be in compliance with the disclosure requirements.
    ``(c) Effective Dates.--Any regulation of the Board, or any 
amendment or interpretation thereof, that requires a disclosure 
different from the disclosures previously required shall have an 
effective date of October 1 that follows the date of promulgation by at 
least six months. The Board may at its discretion lengthen that period 
of time to permit lessors to adjust their forms to accommodate new 
requirements. The Board may also shorten that period of time if it 
makes a specific finding that such action is necessary to comply with 
the findings of a court or to prevent unfair or deceptive practices. In 
any case, lessors may comply with any newly promulgated disclosure 
requirement prior to its effective date.''.

SEC. 154. SEGREGATED LEASING DISCLOSURES.

    Section 182 of the Consumer Credit Protection Act as amended (15 
U.S.C. 1667(a)) is amended--
            (a) by inserting ``(a)'' before ``Each lessor'' in the 
        first sentence; and,
            (b) by adding at the end the following new subsection:
    ``(b) Prior to or at the time the consumer receives the disclosure 
required under section 182(a), the lessor shall separately disclose, to 
the extent applicable, each of the following items in a tabular format 
in a manner to be prescribed by the Board:
            ``(1) Total amount of funds due at lease inception. This 
        amount shall include any security deposit, whether or not it is 
        refundable and any other fees required to be paid to the lessor 
        at lease inception by the consumer.
            ``(2) Total monthly payment due to the Lessor. This amount 
        does not include any taxes payable by the lessee to any 
        governmental entity.
            ``(3) Number of Payments.
            ``(4) Total of Monthly Payments.
            ``(5) Capitalized Cost.
            ``(6) Residual Value.
            ``(7) Whether or not the Lessee has the right to purchase 
        the Vehicle during or at the end of the Lease.
            ``(8) Excess Mileage Charge: The amount that the Lessee, at 
        scheduled termination, must pay for each mile in excess of a 
        pre-determined number of miles.
            ``(9) Early Termination: In the even of early termination 
        of the lease by the lessee, the disclosure of the payment 
        allocation method by name alone which would facilitate 
        comparison shopping by consumers.
In prescribing regulations to carry out this clause, the Board shall 
define and name not more than the five early termination liability 
calculation methods determined by the Board to be the most commonly 
used methods.''.

SEC. 155. CONSUMER LEASE ADVERTISING.

    Section 184 of the Consumer Credit Protection Act (15 U.S.C. 
1667(c)) is amended to read as follows:

``SEC. 184. CONSUMER LEASE ADVERTISING.

    ``(a) If an advertisement for a consumer lease states the amount of 
any payment or states that any or no initial payment is required, the 
advertisement must also clearly and conspicuously state the following 
terms, as applicable:
            ``(1) That the transaction advertised is a lease.
            ``(2) The total of initial payments required at or before 
        consummation of the lease or delivery of the property, 
        whichever is later.
            ``(3) That a security deposit is required.
            ``(4) The number, amounts, and timing of scheduled 
        payments.
            ``(5) For a lease in which the consumer's liability at the 
        end of the lease term is based on the anticipated residual 
        value of the property, that an extra charge may be imposed at 
        the end of the lease term.
    ``(b) Any owner or personnel of any medium in which an 
advertisement appears or through which it is disseminated shall not be 
liable under this section.''.

             Subtitle F--Federal Home Loan Bank Amendments

SEC. 161. APPLICATION FOR MEMBERSHIP IN THE FHLB SYSTEM.

    Section 4(b) of the Federal Home Loan Bank Act (12 U.S.C. 1424) is 
amended to read as follows:
    ``(b) Membership Based on Conveniency.--An institution eligible to 
become a member under this section may become a member by submitting 
its application for membership to the Bank in the district where the 
applicant's principal place of business is located. An application for 
membership shall be approved by the Bank if, in the judgment of the 
Bank, the applicant meets the criteria for eligibility contained in 
this section. An institution eligible to become a member under this 
section may apply for membership in an adjoining district, if 
appropriate for the convenience of the institution and then only with 
the approval of the Board.''.

SEC. 162. FEDERAL HOME LOAN BANK EXTERNAL AUDITORS.

    Section 11(j) of the Federal Home Loan Bank Act (12 U.S.C. 1431(j)) 
is amended to read as follows:
    ``(j) Audits.--
            ``(1) Notwithstanding the provisions of section 
        9105(a)(1)(B) of title 31, United States Code, audits by the 
        General Accounting Office of the financial transactions of a 
        Federal home loan bank shall not be limited to periods during 
        which Government capital has been invested therein. The 
        provisions of section 9107(c)(2) and 9108(d)(1) of title 31, of 
        such Code, shall not apply to any Federal home loan bank.
            ``(2) Notwithstanding any other provision of law, the Board 
        shall not participate in the hiring of an external auditor by 
        the banks; except, that the Board may establish requirements 
        for external audit contracts and accounting standards and, that 
        all 12 banks shall contract for an annual audit with a single 
        provider.''.

             TITLE II--STREAMLINING GOVERNMENT REGULATIONS

                 Subtitle A--Regulatory Approval Issues

SEC. 201. STREAMLINED NONBANKING ACQUISITIONS BY WELL CAPITALIZED AND 
              WELL MANAGED BANKING ORGANIZATIONS.

    (a) Notice Requirements.--Section 4(j) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(j)) is amended as follows:
            (1) In paragraph (1), strike ``No'' and insert in its place 
        ``Except as provided in paragraph (3), no'';
            (2) add at the end the following new paragraphs:
            ``(3) No notice required for certain transactions.--No 
        notice under paragraph (1) or subsections (c)(8) or (a)(2)(B) 
        is required for a proposal by a bank holding company to engage 
        in any activity or acquire the shares or assets of any company 
        if the proposal qualifies under paragraph (4).
            ``(4) Criteria for statutory approval.--A proposal 
        qualifies under this paragraph if all of the following criteria 
        are met:
                    ``(A) Financial criteria.--Both before and 
                immediately after the proposed transaction--
                            ``(i) the acquiring bank holding company is 
                        well capitalized;
                            ``(ii) the lead insured depository 
                        institution of such holding company is well 
                        capitalized;
                            ``(iii) well capitalized insured depository 
                        institutions control at least 80 percent of the 
                        aggregate total risk-weighted assets of insured 
                        depository institutions controlled by such 
                        holding company; and
                            ``(iv) no insured depository institution 
                        controlled by such holding company is 
                        undercapitalized.
                    ``(B) Managerial criteria.--
                            ``(i) Well managed.--At the time of the 
                        transaction, the acquiring bank holding 
                        company, its lead insured depository 
                        institution, and insured depository 
                        institutions that control at least 90 percent 
                        of the aggregate total risk-weighted assets of 
                        insured depository institutions controlled by 
                        such holding company are well managed.
                            ``(ii) Limitation on poorly managed 
                        institutions.--
                                    ``(I) In general.--No insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                received one of the lowest 2 composite 
                                ratings at the later of the 
                                institution's most recent examination 
                                or subsequent review.
                                    ``(II) Recently acquired 
                                institutions.--Insured depository 
                                institutions acquired by the bank 
                                holding company within the previous 12 
                                months may be excluded for purposes of 
                                subclause (I) if--
                                            ``(aa) the bank holding 
                                        company has developed a plan 
                                        acceptable to the appropriate 
                                        Federal banking agency (as 
                                        defined in section 3 of the 
                                        Federal Deposit Insurance Act) 
                                        for the institution to restore 
                                        the capital and management of 
                                        the institution; and
                                            ``(bb) all such insured 
                                        depository institutions 
                                        represent, in the aggregate, 
                                        less than 10 percent of the 
                                        aggregate total risk-weighted 
                                        assets of all insured 
                                        depository institutions 
                                        controlled by the bank holding 
                                        company.
                    ``(C) Activities permissible.--Following 
                consummation of the proposal, the bank holding company 
                engages directly or through a subsidiary solely in--
                            ``(i) activities that are permissible under 
                        subsection (c)(8), as determined by the Board 
                        by regulation or order thereunder, subject to 
                        all of the restrictions, terms and conditions 
                        of such subsection and such regulation or 
                        order; and
                            ``(ii) such other activities as are 
                        otherwise permissible under this section, 
                        subject to the restrictions, terms and 
                        conditions, including any prior notice or 
                        approval requirements, provided in this 
                        section.
                    ``(D) Size of acquisition.--
                            ``(i) Asset size.--The book value of the 
                        total assets acquired does not exceed 10 
                        percent of the consolidated total risk-weighted 
                        assets of the acquiring bank holding company; 
                        and
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.
                    ``(E) Notice not otherwise warranted.--For 
                proposals described in paragraph (5)(B), the Board has 
                not, prior to the conclusion of the period provided in 
                paragraph (5)(B), advised the bank holding company that 
                a notice under paragraph (1) is required.
            ``(5) Notification.--
                    ``(A) Commencement of activities approved by 
                rule.--A bank holding company that qualifies under 
                paragraph (4) and that proposes to engage de novo, 
                directly or through a subsidiary, in any activity that 
                is permissible under subsection (c)(8), as determined 
                by the Board by regulation, may commence that activity 
                without prior notice to the Board and must provide 
                written notification to the Board no later than 10 
                business days after commencing the activity.
                    ``(B) Activities permitted by order and 
                acquisitions.--At least 12 business days prior to 
                commencing any activity pursuant to paragraph (3) other 
                than an activity described in subparagraph (A) or 
                acquiring shares or assets of any company pursuant to 
                paragraph (3), the bank holding company must provide 
                the Board written notification of the proposal, unless 
                the Board determines that no notice or a shorter notice 
                period is appropriate. A notification under this 
                subparagraph must include a description of the proposed 
                activities and the terms of any proposed acquisition.
            ``(6) Adjustment of amounts.--The Board may by regulation 
        adjust the amounts and the manner in which the percentage of 
        insured depository institutions is calculated under paragraph 
        (4)(B)(i), paragraph (4)(B)(ii)(II)(bb), and paragraph (4)(D) 
        if the Board determines that any such adjustment is consistent 
        with safety and soundness and the purposes of this Act.''.
    (b) Definitions.--Section 2(o)(1) of the Bank Holding Company Act 
(12 U.S.C. 1841) is amended by adding at the end the following new 
paragraphs:
            ``(1) Capital terms.--
                    ``(A) Insured depository institutions.--With 
                respect to insured depository institutions, the terms 
                `well-capitalized,' `adequately capitalized,' and 
                `undercapitalized' have the meaning given those terms 
                in section 38(b) of the Federal Deposit Insurance Act.
                    ``(B) Bank holding company.--
                            ``(i) Adequately capitalized.--The term 
                        `adequately capitalized' means a level of 
                        capitalization which meets or exceeds all 
                        applicable Federal regulatory capital 
                        standards;
                            ``(ii) Well capitalized.--A bank holding 
                        company is `well capitalized' if it meets the 
                        required capital levels for well capitalized 
                        bank holding companies established by the 
                        Board.
                    ``(C) Other capital terms.--The term `Tier 1' and 
                `risk-weighted assets' have the meaning given those 
                terms in the capital guidelines or regulations 
                established by the Board for bank holding companies.
    ``(p) Lead Insured Depository Institution.--The term `lead insured 
depository institution' means the largest insured depository 
institution controlled by the bank holding company at any time, based 
on a comparison of the average total risk-weighted assets controlled by 
each insured depository institution during the previous 12 month 
period. For purposes of this subsection and section 4(j)(4), the term 
`insured depository institution' shall also include any branch or 
agency operated in the United States by a foreign bank.
    ``(q) Well Managed.--A company or depository institution is `well 
managed' if, at its most recent examination or subsequent review, the 
company or institution received--
            ``(1) one of the highest 2 composite ratings; and
            ``(2) at least a satisfactory rating for management, if 
        such rating is given.''.

SEC. 202. STREAMLINED BANK ACQUISITIONS BY WELL CAPITALIZED AND WELL 
              MANAGED BANKING ORGANIZATIONS.

    (a) Bank Holding Company Act Amendments.--Section 3 of the Bank 
Holding Company Act (12 U.S.C. 1842) is amended by adding at the end 
the following new subsection:
    ``(h) No Approval Required for Certain Transactions.--
Notwithstanding subsections (a)(3) or (a)(5), an acquisition of shares 
by a registered bank holding company, or a merger or consolidation 
between registered bank holding companies, shall be deemed approved at 
the conclusion of the period specified in paragraph (7) if--
            ``(1) Financial and managerial criteria.--
                    ``(A) Well capitalized bank holding company.--Both 
                at the time of and immediately after the proposed 
                transaction, the acquiring bank holding company is well 
                capitalized.
                    ``(B) Well capitalized lead insured depository 
                institution.--Both at the time of and immediately after 
                the proposed transaction, the lead insured depository 
                institution of the acquiring bank holding company is 
                well capitalized.
                    ``(C) Capital of other insured depository 
                institutions.--At the time of the transaction, well 
                capitalized insured depository institutions control at 
                least 80 percent of the aggregate total risk-weighted 
                assets of insured depository institutions controlled by 
                the acquiring bank holding company.
                    ``(D) No undercapitalized insured depository 
                institutions.--At the time of the transaction, no 
                insured depository institution controlled by the 
                acquiring bank holding company is undercapitalized.
                    ``(E) Well managed.--
                            ``(i) In general.--At the time of the 
                        transaction, the acquiring bank holding 
                        company, its lead insured depository 
                        institution, and insured depository 
                        institutions that control at least 90 percent 
                        of the aggregate total risk-weighted assets of 
                        insured depository institutions controlled by 
                        such holding company are well managed.
                            ``(ii) No poorly managed institutions.--
                                    ``(I) In general.--No insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                received one of the lowest two 
                                composite ratings at the later of the 
                                institution's most recent examination 
                                or subsequent review.
                                    ``(II) Recently acquired 
                                institutions.--Insured depository 
                                institutions acquired by the bank 
                                holding company within the previous 12 
                                months may be excluded for purposes of 
                                subclause (I) if--
                                            ``(aa) the bank holding 
                                        company has developed a plan 
                                        acceptable to the appropriate 
                                        Federal banking agency (as 
                                        defined in section 3 of the 
                                        Federal Deposit Insurance Act) 
                                        for the institution to restore 
                                        the capital and management of 
                                        the institution; and
                                            ``(bb) all such insured 
                                        depository institutions 
                                        represent, in the aggregate, 
                                        less than 10 percent of the 
                                        aggregate total risk-weighted 
                                        assets of all insured 
                                        depository institutions 
                                        controlled by the holding 
                                        company.
                            ``(iii) Adjustment of amounts.--The Board 
                        may by regulation adjust the amounts and the 
                        manner in which the percentage of insured 
                        depository institutions is calculated under 
                        clauses (i) and (ii)(II)(bb) if the Board 
                        determines that such adjustment is consistent 
                        with safety and soundness and the purposes of 
                        this Act.
            ``(2) No unsatisfactory cra ratings.--
                    ``(A) In general.--No insured depository 
                institution controlled by the acquiring bank holding 
                company has received a `needs to improve' or 
                `substantial noncompliance' composite rating at its 
                most recent examination under the Community 
                Reinvestment Act.
                    ``(B) Recently acquired institutions.--Insured 
                depository institutions acquired by such bank holding 
                company within the previous 12 months may be excluded 
                for purposes of subparagraph (A) if the bank holding 
                company has developed a plan acceptable to the 
                appropriate Federal banking agency (as defined in 
                section 3 of the Federal Deposit Insurance Act) to 
                restore the performance of the institution to at least 
                a `satisfactory' rating under the Community 
                Reinvestment Act.
            ``(3) Competitive criteria.--Consummation of the proposal 
        complies with guidelines established by the Board by 
        regulation, after consultation with the Attorney General, that 
        identify proposals that are not likely to have a significantly 
        adverse effect on competition in any relevant market.
            ``(4) Size of acquisition.--
                    ``(A) Limitations.--
                            ``(i) Asset size.--The book value of the 
                        total assets acquired does not exceed 10 
                        percent of the consolidated total risk weighted 
                        assets of the acquiring bank holding company.
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.
                    ``(B) Adjustment to limitations.--The Board may by 
                regulation adjust the limitations established in this 
                paragraph in a manner consistent with safety and 
                soundness and the purposes of this Act.
            ``(5) Interstate acquisitions.--Board approval of the 
        transaction is not prohibited under subsection (d).
            ``(6) Other considerations.--Board approval of the 
        transaction is not prohibited under subsection (c)(3); and
            ``(7) Notification.--The acquiring bank holding company 
        provides the Board with written notice of the transaction, 
        including a description of the terms of the transaction, at 
        least 15 business days (or such shorter period as permitted by 
        the Board) prior to consummation of the transaction, and, prior 
        to the conclusion of that period, the Board has not required an 
        application under subsection (a).''.

SEC. 203. ELIMINATE BANK MERGER ACT FILING AND APPROVAL REQUIREMENTS 
              FOR INSURED DEPOSITORY INSTITUTIONS ALREADY CONTROLLED BY 
              THE SAME HOLDING COMPANY.

    Section 18(c) of the Federal Deposit Insurance Act is amended by 
adding at the end the following new paragraph:
            ``(12) The provisions of this subsection shall not apply to 
        any merger, consolidation, acquisition of assets or assumption 
        of liabilities involving only insured depository institutions 
        that are subsidiaries of the same depository institution 
        holding company if--
                    ``(A) the responsible agency would not be 
                prohibited from approving the transaction under section 
                44;
                    ``(B) the acquiring, assuming, or resulting 
                institution complies with all applicable provisions of 
                section 44 as if the merger, consolidation, or 
                acquisition were approved under this subsection; and
                    ``(C) the acquiring, assuming, or resulting 
                institution provides written notification of the 
                transaction to the appropriate Federal banking agency 
                for the institution at least 10 days prior to 
                consummation of the transaction.''.

SEC. 204. ELIMINATE REDUNDANT APPROVAL REQUIREMENT FOR OAKAR 
              TRANSACTIONS.

    Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1815(d)(3)) is amended--
            (1) in subparagraph (A), by striking ``with the prior 
        written approval of the responsible agency under section 
        18(c)(2)'';
            (2) in subparagraph (E)--
                    (A) by striking clause (iv) and inserting the 
                following new clause:
                            ``(iv) A transaction shall not be 
                        authorized under this paragraph unless the 
                        acquiring, assuming, or resulting depository 
                        institution will meet all applicable capital 
                        requirements upon consummation of the 
                        transaction.'';
                    (B) by striking clauses (i) and (ii); and
                    (C) by redesignating clauses (iii) and (iv) as 
                clauses (i) and (ii), respectively;
            (3) by striking subparagraph (G) and redesignating the 
        subsequent subparagraphs accordingly.

SEC. 205. ELIMINATE DUPLICATIVE REQUIREMENTS IMPOSED ON BANK HOLDING 
              COMPANIES UNDER THE HOME OWNERS' LOAN ACT.

    (a) Section 10(a) of the Home Owners' Loan Act (12 U.S.C. 1467a(a)) 
is amended by adding at the end the following new paragraph:
            ``(5) Exemption for bank holding companies.--The provisions 
        of this section shall not apply to any company that is a bank 
        holding company registered under, and subject to, the 
        provisions of the Bank Holding Company Act, or to any company 
        directly or indirectly controlled by such company (other than a 
        savings association).''.
    (b) Section 10(a)(1)(D) of the Home Owners' Loan Act (12 U.S.C. 
1467a(a)(1)(D)) is amended to read as follows:
                            ``(i) Savings and loan holding company.--
                        Except as provided in clause (ii), the term 
                        `savings and loan holding company' means any 
                        company which directly or indirectly controls a 
                        savings association or controls any other 
                        company which is a savings and loan holding 
                        company.
                            ``(ii) Exclusion.--The term `savings and 
                        loan holding company' does not include a bank 
                        holding company that is registered under, and 
                        subject to, the provisions of the Bank Holding 
                        Company Act, or any company controlled by such 
                        bank holding company.''.
    (c) Section 10(e)(1)(B) of the Home Owners' Loan Act (12 U.S.C. 
1467a(e)(1)(B)) is amended--
            (1) by striking ``or (ii)'' and inserting ``(ii)'';
            (2) by inserting before the period at the end of the first 
        sentence the following: ``, or (iii) acquired by a bank holding 
        company that is registered under, and subject to, the 
        provisions of the Bank Holding Company Act, or any company 
        controlled by such bank holding company''.

SEC. 206. ELIMINATE REQUIREMENT THAT APPROVAL BE OBTAINED FOR 
              DIVESTITURES.

    Section 2(g) of the Bank Holding Company Act (12 U.S.C. 1841(g)) is 
amended--
            (1) by striking paragraph (3);
            (2) by inserting ``and'' after paragraph (1); and
            (3) by striking ``; and'' at the end of paragraph (2) and 
        inserting a period.

SEC. 207. ELIMINATE UNNECESSARY BRANCH APPLICATIONS.

    (a) National Bank Branch Applications.--Section 5155(i) of the 
Revised Statutes (12 U.S.C. 36(i)) is amended--
            (1) by striking ``No branch'' and inserting the following:
            ``(1) Approval required.--Except as provided in paragraph 
        (2), no branch''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) No approval required for certain branches.--
        Notwithstanding this subsection, subsection (b) or subsection 
        (c), the consent and approval of the Comptroller of the 
        Currency shall not be required for a national banking 
        association to establish and operate, or to retain and operate, 
        a branch or seasonal agency if--
                    ``(A) the association is well-capitalized, as that 
                term is defined in section 38 of the Federal Deposit 
                Insurance Act and regulations prescribed by the 
                Comptroller of the Currency under such section;
                    ``(B) the association received a composite CAMEL 
                rating of `1' or `2' under the Uniform Financial 
                Institutions Rating System (or an equivalent rating 
                under a comparable rating system) as of its most recent 
                examination;
                    ``(C) the association did not receive a `needs to 
                improve' or `substantial noncompliance' composite 
                rating at its most recent examination under the 
                Community Reinvestment Act; and
                    ``(D) the Comptroller of the Currency is authorized 
                to grant approval under this section to such 
                association to establish and operate, or to retain and 
                operate, a branch or seasonal agency at the proposed 
                location.
            ``(3) A branch or seasonal agency established by a national 
        banking association under paragraph (2) shall be deemed to have 
        been established and operated pursuant to an application 
        approved under this section.''.
    (b) State Member Bank Branch Applications.--The third undesignated 
paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is 
amended by adding at the end the following: ``Notwithstanding the 
previous two sentences, the approval of the Board shall not be required 
for a State member bank to establish and operate a branch or seasonal 
agency if--
            ``(A) the State member bank is well-capitalized, as that 
        term is defined in section 38 of the Federal Deposit Insurance 
        Act and regulations prescribed by the Board under such section;
            ``(B) the State member bank received a composite CAMEL 
        rating of `1' or `2' under the Uniform Financial Institutions 
        Rating System (or an equivalent rating under a comparable 
        rating system);
            ``(C) the State member bank did not receive a `needs to 
        improve' or `substantial noncompliance' composite rating at its 
        most recent examination under the Community Reinvestment Act; 
        and
            ``(D) the Board is authorized to grant approval under this 
        section to such State member bank to establish and operate a 
        branch or seasonal agency at the proposed location.
A branch or seasonal agency established by a State member bank under 
the previous sentence shall be deemed to have been established and 
operated pursuant to an application approved under this section.''.
    (c) State Nonmember Bank Branch Applications.--Section 18(d) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by adding 
at the end the following new paragraphs:
            ``(5) Application exemption for certain banks.--
        Notwithstanding paragraph (1), the consent of the Corporation 
        shall not be required for a State nonmember insured bank to 
        establish and operate any domestic branch if--
                    ``(A) the bank is well-capitalized, as that term is 
                defined in section 38 and regulations prescribed by the 
                Corporation under such section;
                    ``(B) the bank received a composite CAMEL rating of 
                `1' or `2' under the Uniform Financial Institutions 
                Rating System (or an equivalent rating under a 
                comparable rating system) as of its most recent 
                examination;
                    ``(C) the bank did not receive a `needs to improve' 
                or `substantial noncompliance' composite rating at its 
                most recent examination under the Community 
                Reinvestment Act; and
                    ``(D) the Corporation is authorized to give consent 
                under this section to such bank to establish and 
                operate a domestic branch at the proposed location.
            ``(6) Approval granted.--A branch established by a State 
        member bank under paragraph (5) shall be deemed to have been 
        established and operated pursuant to an application approved 
        under this section.''.

SEC. 208. ELIMINATE BRANCH APPLICATIONS/REQUIREMENTS FOR ATMs AND 
              SIMILAR FACILITIES.

    (1) ``Branch'' Under National Bank Act.--Section 5155(j) of the 
Revised Statutes (12 U.S.C. 36(j)) is amended by adding at the end the 
following: ``The term `branch' does not include automated teller 
machines or remote service units.''.
    (2) ``Branch'' Under Federal Deposit Insurance Act.--Section 3(o) 
of the Federal Deposit Insurance Act (12 U.S.C. 1813(o)) is amended by 
striking ``lent; and the'' and inserting ``lent. The term `domestic 
branch' does not include automated teller machines or remote service 
units. The''.

SEC. 209. ELIMINATE REQUIREMENT FOR APPROVAL OF INVESTMENTS IN BANK 
              PREMISES FOR WELL CAPITALIZED AND WELL MANAGED BANKS.

    Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is amended 
by inserting before the period in that section the following: ``unless 
such bank received a composite CAMEL rating of `1' or `2' under the 
Uniform Financial Institutions Rating System (or an equivalent rating 
under a comparable rating system) as of its most recent examination 
and, both before and immediately following the investment or loan, is 
well capitalized (as defined under section 38 of the Federal Deposit 
Insurance Act)''.

SEC. 210. ELIMINATE UNNECESSARY FILING FOR OFFICER AND DIRECTOR 
              APPOINTMENTS.

    Section 32 of the Federal Deposit Insurance Act (12 U.S.C. 1831i) 
is amended as follows:
            (1) in subsection (a)--
                    (A) by inserting after ``30 days (or such other 
                period as determined by the agency)'';
                    (B) by striking ``if the insured depository 
                institution or depository institution holding company'' 
                and inserting ``if'';
                    (C) by striking paragraphs (1) and (2);
                    (D) in paragraph (3)--
                            (i) by inserting ``the insured depository 
                        institution or depository institution holding 
                        company'' before ``is not in compliance''; and
                            (ii) by striking the period and inserting 
                        instead ``; and'';
                    (E) by redesignating paragraph (3) as paragraph 
                (1); and
                    (F) by adding at the end the following new 
                paragraph:
            ``(2) the agency determines, in connection with its review 
        of the plan required under section 38 or otherwise, that such 
        prior notice is appropriate.''; and
            (2) in subsection (b), by striking ``30-day'' and inserting 
        in its place ``notice''.

SEC. 211. STREAMLINING PROCESS FOR DETERMINING NEW NONBANKING 
              ACTIVITIES.

    Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)(8)) is amended by striking ``and opportunity for hearing''.

   Subtitle B--Streamlining of Government Regulations; Miscellaneous 
                               Provisions

SEC. 221. ELIMINATE THE PER-BRANCH CAPITAL REQUIREMENT FOR NATIONAL 
              BANKS AND STATE MEMBER BANKS.

    Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended by 
striking subsection (h).

SEC. 222. 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:
    ``(a) Definitions.--For purposes of this section, the term `branch' 
shall not include the following:
            ``(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; or
                    ``(B) any assistance provided by the Corporation 
                under section 13(c).
            ``(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. 223. AMENDMENTS TO THE DEPOSITORY INSTITUTIONS MANAGEMENT 
              INTERLOCKS ACT.

    (a) Dual Service in Same Area, Town, or Village.--Section 203 of 
the Depository Institution Management Interlocks Act (12 U.S.C. 3202) 
is amended--
            (1) by inserting ``(a) Prohibitions.--'' before ``A 
        management official''; and
            (2) by adding after subsection (a) the following new 
        subsection:
    ``(b) Small Market Share Exemption.--This section shall not 
prohibit a management official of a depository institution or 
depository holding company from serving as a management official of 
another depository institution or depository holding company not 
affiliated therewith if the depository institutions or depository 
holding companies with which the management official serves hold, 
together with their affiliates, in the aggregate no more than 20 
percent of the deposits in each relevant geographic banking market, as 
defined by the Board of Governors of the Federal Reserve System, where 
offices of the depository institutions or depository holding companies 
or their affiliates are located.''.
    (b) Dual Service Among Larger Organizations.--Section 204 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3203) is 
amended--
            (1) by striking ``$1,000,000,000'' and inserting 
        ``$2,000,000,000''; and
            (2) by striking ``$500,000,000'' and inserting 
        ``$1,000,000,000''; and,
            (3) by adding at the end thereof the following: ``The 
        dollar amount in this section shall be adjusted annually after 
        December 31, 1994, by the annual percentage increase in the 
        Consumer Price Index for Urban Wage Earners and Clerical 
        Workers published by the Bureau of Labor Statistics.''.
    (c) Extension of Grandfather Exemption.--Section 206 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3205) is 
amended--
            (1) in subsection (a), by striking ``for a period of, 
        subject to the requirements of subsection (c), 20 years after 
        the date of enactment of this title'';
            (2) by inserting a period after ``position'' the second 
        place such term appears;
            (3) in subsection (b), by striking the second sentence; and
            (4) by striking subsection (c).
    (d) Rules or Regulations.--Section 209 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3207) is amended--
            (1) by striking ``(a) In General.--Rules'' and inserting 
        ``Rules'';
            (2) by inserting ``, including rules or regulations which 
        permit service by a management official which would otherwise 
        be prohibited by section 203 or section 204,'' after 
        ``chapter''; and
            (3) by striking subsections (b) and (c).

SEC. 224. CONSOLIDATION OF APPRAISAL SUBCOMMITTEE.

    (a) Appraisal Subcommittee Consolidation.--The Appraisal 
Subcommittee established under the Federal Financial Institutions 
Examination Council Act of 1978 is abolished and its functions shall be 
consolidated into the Financial Institutions Examination Council.
    (b) Conforming Amendments to Title XI.--
            (1) The Federal Financial Institutions Examination Council 
        Act of 1978 is amended by striking the following sections:
                    (A) Section 1102 (12 U.S.C. 3310).
                    (B) Section 1104 (12 U.S.C. 3333).
                    (C) Section 1105 (12 U.S.C. 3334).
                    (D) Section 1106 (12 U.S.C. 3335).
                    (E) Section 1108 (12 U.S.C. 3337).
                    (F) Section 1116(e) (12 U.S.C. 3345(e)).
                    (G) Section 1122(e) (12 U.S.C. 3351(e)).
            (2) Section 1121 of the FIECA of 1978 (12 U.S.C. 3350) is 
        amended--
                    (A) by striking paragraphs (2) and (8);
                    (B) by redesignating paragraphs (3) through (7) as 
                paragraphs (2) through (6), respectively; and
                    (C) by redesignating paragraphs (9) through (10) as 
                paragraphs (7) through (8), respectively.
    (c) Conforming Amendment.--Section 202(e) of the National Housing 
Act (12 U.S.C. 1708(e)) is amended by striking paragraph (2) and 
redesignating paragraphs (3) and (4) as paragraphs (2) through (3).
    (d) Consolidation of Functions to FFIEC; Reduction of Assessments 
on Appraisers.--
            (1) Section 1103 of the Financial Institutions Reform, 
        Recovery and Enforcement Act of 1989 (12 U.S.C. 3332) is 
        amended--
                    (A) by striking ``Appraisal Subcommittee'' each 
                place it appears and inserting instead ``Financial 
                Institutions Examination Council'';
                    (B) in paragraph (a)(3), by inserting before 
                ``maintain'' the words ``if the Council determines that 
                doing so will further the purposes of this chapter,''; 
                and
                    (C) by amending paragraph (a)(4) to read as 
                follows:
            ``(4) include in its annual report to Congress a 
        description of how it has performed the functions assigned to 
        it under this chapter.''.
            (2) Section 1109 of the Financial Institutions Reform, 
        Recovery and Enforcement Act of 1989 (12 U.S.C. 3338) is 
        amended to read as follows:

``SEC. 1109. ROSTER OF STATE CERTIFIED OR LICENSED APPRAISERS.

    ``(a) Roster; Collection of Fees.--Each State with an appraiser 
certifying and licensing agency whose certifications and licenses 
comply with this chapter, shall--
            ``(1) upon request of the Federal Financial Institutions 
        Examination Council, transmit to the Council annually (or at 
        any less frequent interval specified by the Council) a roster 
        listing individuals who have received a State certification or 
        license in accordance with this chapter;
            ``(2) collect from such individuals who perform or seek to 
        perform appraisals in federally related transactions, an annual 
        registry fee, the amount of which is to be determined by the 
        Council but not to exceed $25 per year, to support its 
        activities under this chapter; and
            ``(3) transmit all registry fees to the Council on an 
        annual basis.
    ``(b) Status of Registry Fees.--Registry fees collected and 
transmitted to the Council pursuant to this section shall not 
constitute appropriated funds.''.
            (3) Section 1116(e) of the Financial Institutions Reform, 
        Recovery and Enforcement Act of 1989 (12 U.S.C. 3345(e)) is 
        amended by striking ``Appraisal Subcommittee'' and 
        ``Subcommittee'' and inserting instead ``Financial Institutions 
        Examination Council''.
            (4) Section 1118 of the Financial Institutions Reform, 
        Recovery and Enforcement of 1989 (12 U.S.C. 3347) is amended by 
        striking ``Appraisal Subcommittee'' each place it appears and 
        inserting instead ``Financial Institutions Examination 
        Council''.
            (5) Section 1119 of the Financial Institutions Reform, 
        Recovery and Enforcement Act of 1989 (12 U.S.C. 3348) is 
        amended--
                    (A) by striking ``Subject to the approval of the 
                Council, the Appraisal Subcommittee'' and inserting in 
                its place ``The Council'';
                    (B) by striking ``Appraisal Subcommittee'' each 
                place it appears and inserting instead ``Financial 
                Institutions Examination Council''.
            (6) Section 1120 of the Financial Institutions Reform, 
        Recovery and Enforcement Act of 1989 (12 U.S.C. 3349) is 
        amended by striking ``Appraisal Subcommittee'' and inserting 
        instead ``Financial Institutions Examination Council''.
    (e) Remission of Funds to the Treasury.--All funds held by, and the 
right to collect all funds owed to, the Appraisal Subcommittee on the 
effective date of this section shall be transferred to the United 
States Treasury.
    (f) Repayment of Prepaid Registry Fees.--Before the effective date 
specified in subsection (g), the Appraisal Subcommittee shall refund to 
the States any registry fees prepaid to the Subcommittee for the period 
after December 31, 1995.
    (g) Employees Transferred.--
            (1) Identifying employees for transfer.--
                    (A) In general.--The Financial Institutions 
                Examination Council shall identify those employees of 
                the Appraisal Subcommittee for transfer to the Council 
                needed to perform functions transferred from the 
                Subcommittee to the Council, in a manner that the 
                Council, in its sole discretion, deems equitable.
                    (B) Identified employees transferred.--All 
                employees of the Appraisal Subcommittee identified for 
                transfer to the Council under subparagraph (A) shall be 
                transferred to the Council for employment on the date 
                set forth in subsection (h).
            (2) Priority of this act.--If any protection provided under 
        this section conflicts with any protection provided to 
        transferred employees under section 3503 of title 5, United 
        States Code, the provisions of this section shall control.
            (3) Rights of transferred employees.--
                    (A) Comparable positions.--Each employee 
                transferred to the Financial Institutions Examination 
                Council shall, on the date of transfer, be appointed to 
                a position under the compensation system and 
                performance evaluation system of the Council that is 
                comparable in tenure and grade to that of the position 
                the employee held on the enactment date of this Act.
                    (B) Pay.--
                            (i) In general.--Except as provided in 
                        clause (ii), each employee transferred to the 
                        Financial Institutions Examination Council 
                        under this section shall, during the 1-year 
                        period after the date of transfer, receive pay 
                        at a rate not less than the basic rate of pay 
                        that the employee received at the Appraisal 
                        Subcommittee during the 1-year period 
                        immediately before the enactment date of this 
                        Act.
                            (ii) Exceptions.--Clause (i) does not limit 
                        the right of the Council to reduce a 
                        transferred employee's rate of basic pay--
                                    (I) for cause;
                                    (II) for unacceptable performance; 
                                or
                                    (III) with the employee's consent.
                            (iii) Protection only while employed.--
                        Subparagraph (B) applies to a transferred 
                        employee only while that employee remains 
                        employed by the Council.
            (4) Retirement benefits.--
                    (A) Continuation of existing retirement plan.--
                Except as otherwise permitted by law, each employee who 
                transfers to the Financial Institutions Examination 
                Council under this section shall remain enrolled in the 
                retirement plan (and any associated thrift savings 
                plan) in which he or she was enrolled on the day before 
                the date of transfer while he or she remains employed 
                by the Council.
                    (B) Employer's contribution.--The Financial 
                Institutions Examination Council shall pay any employer 
                contributions to the retirement plan in which each 
                transferred employee is subject during his or her 
                period of service at the Council, as required under 
                that plan.
            (5) No private right of action.--This section does not 
        provide any employee transferred to the Financial Institutions 
        Examination Council under this section with any right of action 
        to require the Council, or any officer, employee, agent, or 
        administrator thereof, to take any action under this section.
    (h) Effective Date.--This section shall take effect 90 days from 
enactment, except that, unless otherwise provided, subsections (f) and 
(g) shall take effect immediately.

SEC. 225. ELIMINATE UNNECESSARY AND DUPLICATIVE RECORDKEEPING AND 
              REPORTING REQUIREMENTS RELATING TO LOANS TO EXECUTIVE 
              OFFICERS AND PERMIT PARTICIPATION IN EMPLOYEE BENEFIT 
              PLANS.

    (a) Amendments to Section 22(h) of the Federal Reserve Act.--
Section 22(h) of the Federal Reserve Act (12 U.S.C. 375b(2)) is 
amended--
            (1) Employee benefit plans.--In paragraph (2)--
                    (A) by renumbering subparagraphs (A) and (C) as 
                clauses (i) through (iii) respectively;
                    (B) by striking ``(2) Preferential terms 
                prohibited'' and inserting in its place:
            ``(2) Preferential terms prohibited.--
                    ``(A) In general; and
                    (C) by inserting at the end a new subparagraph (B) 
                to read as follows:
                    ``(B) Exception.--Nothing in this paragraph shall 
                prohibit extensions of credit made pursuant to a 
                benefit or compensation program widely available to 
                employees of the member bank.'';
            (2) Exception for extensions of credit to executive 
        officers and directors of nonbank affiliates.--In subsection 
        (h)(8)(B) by striking the phrase'', except as that subparagraph 
        makes applicable paragraph (2),''; and
            (3) Recordkeeping requirements.--In paragraph (10), by 
        adding at the end the following: ``The Board shall specify by 
        regulation the recordkeeping required of member banks to ensure 
        compliance with this section. Compliance with the recordkeeping 
        requirements adopted pursuant to this paragraph shall satisfy 
        the audit requirement of section 36(e) of the Federal Deposit 
        Insurance Act, to the extent that its requirements are 
        applicable to this section.''.
    (b) Reporting Requirements.--
            (1) Unnecessary reports.--Section 22(g) of the Federal 
        Reserve Act is amended by deleting paragraphs (6) and (9) and 
        in their entirety and renumbering paragraphs (7), (8), and (10) 
        as paragraphs (6), (7), and (8), respectively.
            (2) Unnecessary reports.--Section 7(k) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1817) is amended to read as 
        follows:
    ``(k) Reserved.''.
            (3) Unnecessary reports regarding loans from correspondent 
        banks.--Section 106(b)(2) of the Bank Holding Company Act 
        Amendments of 1970 (12 U.S.C. 1972(2)) is amended--
                    (A) by deleting subparagraph (G) in its entirety; 
                and
                    (B) by redesignating subparagraphs (H) and (I) as 
                subparagraphs (G) and (H), respectively.

SEC. 226. EXPANDED REGULATORY DISCRETION FOR SMALL BANK EXAMINATIONS.

    (a) Time Period Discretion.--Section 10(d)(4) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)(4)) is amended by--
            (1) in the title, by striking ``18-Month Rule'' and 
        inserting ``24-Month Rule''; and
            (2) in the first sentence, by striking ``18-month'' and 
        inserting ``24-month''.
    (b) Small Bank Size Discretion.--Section 10(d)(8) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)(8)) is amended by striking 
``$175,000,000'' and inserting ``$250,000,000''.
    (c) Inflation Adjustment.--Section 10(d) of the Federal Deposit 
Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end 
thereof the following new paragraph:
            ``(9) The dollar amount in this section shall be adjusted 
        annually after December 31, 1994, by the annual percentage 
        increase in the Consumer Price Index for Urban Wage Earners and 
        Clerical Workers published by the Bureau of Labor 
        Statistics.''.

SEC. 227. COST REIMBURSEMENT.

    Section 1115 of the Right to Financial Privacy Act (12 U.S.C. 3415) 
is amended by inserting ``(including corporate customers)'' after 
``pertaining to a customer''.

SEC. 228. IDENTIFICATION OF NONBANK FINANCIAL INSTITUTION CUSTOMERS.

    (a) In General.--Subchapter 2 of chapter 53 of title 31, United 
States Code, is amended by striking section 5327.
    (b) Technical and Conforming Amendment.--Section 5321(a) of title 
31, United States Code, is amended by striking paragraph (7).
    (c) Clerical Amendment.--The table of sections for subchapter 2 of 
chapter 53 of title 31, United States Code, is amended by striking the 
item relating to section 5327.

SEC. 229. 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--
            (1) review the extent to which current regulations require 
        insured depository institutions to produce unnecessary internal 
        written policies; and
            (2) 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. 230. REPEAL OF UNNECESSARY REPORTING REQUIREMENTS.

    Sections 122 and 477 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (Public Law 102-242) are hereby repealed.

SEC. 231. DAILY CONFIRMATIONS FOR HOLD-IN-CUSTODY REPURCHASE 
              TRANSACTIONS.

    Within one year after the date of enactment of this section, the 
Secretary of the Treasury shall revise the regulation under section 15C 
of the Securities Exchange Act of 1934 relating to the obligations of 
financial institutions holding custody of securities subject to a 
repurchase agreement to confirm, daily and in writing, the securities 
that are subject to such repurchase agreement. Such revision shall 
permit the counterparty to such agreement to waive in writing the right 
to obtain such daily written confirmation if the counterparty has 
received a disclosure, in a form prescribed by the Secretary, that 
adequately informs the counterparty of the benefits of receiving such 
daily written confirmations.

SEC. 232. REQUIRED REGULATORY REVIEW OF REGULATIONS.

    (a) In General.--The Financial Institutions Examination Council 
shall, within every 10-year period, conduct a review of all of the 
regulations issued pursuant to its or its representatives' authority to 
identify outdated or otherwise unnecessary regulatory requirements 
imposed upon insured depository institutions.
    (b) Process.--In conducting the review required under subsection 
(a), the Council shall--
            (1) categorize such regulations by type (such as consumer 
        regulations, safety and soundness regulations, or such other 
        designation as determined by the Council); and
            (2) at regular intervals, provide notice and solicit public 
        comment on a particular category or categories of regulations, 
        requesting commentators to identify areas of such regulations 
        considered out-dated, unnecessary or unduly burdensome.
The Council shall, over a 10-year period, ensure that all categories of 
regulations have been set out for notice and comment.
    (c) Regulatory Response.--The Council shall--
            (1) publish in the Federal Register a summary of the 
        comments received pursuant to this section, identifying 
        significant issues raised and providing comment on such issues; 
        and
            (2) eliminate unnecessary regulations wherever appropriate.
    (d) Report to Congress.--The Council shall, within 30 days of 
publishing the summary required under subsection (c)(1), provide a 
report to the Congress summarizing any significant issues raised during 
such comment period, the relative merits of such issues, and whether 
the appropriate Federal banking agency involved can address the 
regulatory burdens associated with such issues by regulation, or 
whether such concerns can only be addressed by legislation.
    (e) Definitions.--For purposes of this section, the terms ``insured 
depository institution'' and ``appropriate Federal banking agency'' 
have the same meaning as in section 3 of the Federal Deposit Insurance 
Act.

SEC. 233. COUNTRY RISK REQUIREMENTS.

    (a) Section 905 of the International Lending Supervision Act (12 
U.S.C. 3904) is amended--
            (1) in subsection (a)(1), by striking ``shall'' and 
        inserting ``may''; and
            (2) in subsection (b), by striking ``shall'' and inserting 
        ``may''.
    (b) Section 905A of the International Lending Supervision Act (12 
U.S.C. 3904a) is repealed.

SEC. 234. 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) Independent audit committees.--
                    (A) in subsection (g)(1)(A), by striking 
                ``entirely'' and inserting ``the majority of which 
                is'';
                    (B) 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.''.
            (3) 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.''.

SEC. 235. 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''; and
                            (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''.

SEC. 236. CULPABILITY STANDARDS FOR OUTSIDE DIRECTORS.

    Section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(u)) is amended--
            (1) in paragraph (1), by inserting ``(other than an outside 
        director)'' after ``director'';
            (2) in paragraph (3), inserting ``(other than an outside 
        director)'' after ``any other person''; and
            (3) in paragraph (4), by inserting ``or outside director'' 
        after ``or accountant)''.

SEC. 237. 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'';
            (2) by inserting ``undercapitalized'' after ``employee of 
        any''; and
            (3) by striking ``that is not well capitalized''.

SEC. 238. TRANSITION PERIOD FOR NEW REGULATIONS.

    Section 302(b) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 is amended by striking ``a calendar quarter'' 
and inserting ``the semiannual period''

SEC. 239. FOREIGN BANK APPLICATIONS.

    Section 7(d) of the International Banking Act of 1978 (12 U.S.C. 
3105(d)) is amended as follows:
            (1) By striking paragraphs (1) and (2) and inserting in 
        lieu thereof the following:
            ``(1) Prior review required.--Before any foreign bank 
        application to establish a branch or an agency, or acquire 
        ownership or control of a commercial lending company may be 
        approved by any appropriate State bank supervisor or the 
        Comptroller of the Currency, the application must first be 
        submitted for review to the Board for a period of not more than 
        180 days. The purpose of the review is to determine whether 
        approval of any application would place at risk the safe and 
        sound operation of the United States banking system.
            ``(2) Authority of the board.--Based on the determination 
        described in paragraph (1), the Board is authorized to--
                    ``(A) deny the application;
                    ``(B) extend for 180 days the period for review of 
                any application, after providing notice of, and the 
                reasons for, the extension to the applicant and any 
                appropriate State bank supervisor or the Comptroller of 
                the Currency; or
                    ``(C) approve the application, either by 
                affirmative action or by taking no action during the 
                180 day review period.''.
            (2) In paragraph (3), by redesignating subparagraphs (A) 
        through (D) as subparagraphs (C) through (F); by striking all 
        from ``In'' through ``account--''; and by inserting the 
        following: ``In making any determination under paragraph (1), 
        the Board may consider--
                    ``(A) whether the foreign bank engages directly in 
                the business of banking outside the United States and 
                is subject to comprehensive supervision or regulation 
                on a consolidated basis by the appropriate authorities 
                in its home country; and
                    ``(B) whether the foreign bank has furnished to the 
                Board the information it needs to adequately assess the 
                application.''.

SEC. 240. DUPLICATE EXAMINATION OF FOREIGN BANKS.

    Section 7(c)(1) of the International Banking Act of 1978 (12 U.S.C. 
3105(b)(1)) is amended by striking subparagraphs (B), (C), and (D) and 
inserting in lieu thereof:
                    ``(B) Reliance on primary supervisor.--In order to 
                avoid unnecessary duplication and cost, the Board 
                shall, to the extent practicable, rely upon the reports 
                of examinations made by the Comptroller, the Federal 
                Deposit Insurance Corporation, or the appropriate State 
                bank supervisor in achieving the purposes of this 
                subsection.
                    ``(C) On-site examination.--Each branch or agency 
                of a foreign bank shall be subject to on-site 
                examination on the same schedule that a comparable 
                national or State non-member bank would be examined by 
                the Comptroller of the Currency or the Federal Deposit 
                Insurance Corporation.
                    ``(D) Cost of examinations.--The cost of any 
                examination undertaken pursuant to subparagraph (A) 
                shall be assessed against and collected from the 
                foreign bank or the foreign company that controls the 
                foreign bank, as the case may be, but only to the same 
                extent that fees are collected by the Board for 
                examination of any State member insured bank.''.

SEC. 241. SECOND MORTGAGES.

    Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is 
amended--
            (1) in paragraph (aa)(1) by inserting ``a subordinate 
        mortgage on'' after ``secured by''; and
            (2) by deleting ``a residential mortgage transaction''.

SEC. 242. OCC AUTHORITY.

    The Comptroller of the Currency shall not authorize or allow by 
rule, regulation, order, action, inaction or otherwise any activity 
that would have the effect of permitting a national bank to provide 
insurance as principal, agent or broker, and no national bank shall 
engage in any such activity, except to the extent that such specific 
activity was authorized for national banks on June 12, 1995.

                      TITLE III--LENDER LIABILITY

SEC. 301. LENDER LIABILITY.

    (a) In general.--The Federal Deposit Insurance Act (12 U.S.C. 1811 
et seq.) is amended by adding after section 44, the following new 
section:

``SEC. 45. LENDER, FIDUCIARY AND GOVERNMENT AGENCY ENVIRONMENTAL 
              LIABILITIES.

    ``(a) Lender Environmental Liability.--
            ``(1) Nothwithstanding any other provision or rule of 
        Federal law, no lender shall be liable pursuant to any Federal 
        environmental law, except as provided in this section.
            ``(2) A lender shall only be liable pursuant to an Federal 
        environmental law when the lender actually participates in 
        management of another person's activities which create 
        liability under the same Federal environmental law.
            ``(3) For purposes of this section--
                    ``(A) the term `participate in management' means 
                actually participating in the management or operational 
                affairs of other persons' activities, and does not 
                include merely having the capacity to influence, or the 
                unexercised right to control such activities;
                    ``(B) a person shall be considered to `participate 
                in management' while a borrower is still in possession 
                of property, only if such person--
                            ``(i) exercises decisionmaking control over 
                        the environmental compliance of a borrower, 
                        such that the person has undertaken 
                        responsibility for the hazardous substance 
                        handling or disposal practices of the borrower; 
                        or
                            ``(ii) exercises control at a level 
                        comparable to that of a manager of the 
                        enterprise of the borrower, such that the 
                        person has assumed or manifested responsibility 
                        for the overall management of the enterprise 
                        encompassing day-to-day decisionmaking with 
                        respect to environmental compliance, or with 
                        respect to substantially all of the operational 
                        aspects (as distinguished from financial or 
                        administrative aspects) of the enterprise, 
                        other than environmental compliance;
                    ``(C) the term `participate in management' does not 
                include engaging in an act of failing to act prior to 
                the time that an extension of credit is made or a 
                security interest is created in property; and
                    ``(D) the term `participate in management' does not 
                include--
                            ``(i) holding an extension of credit or a 
                        security interest or abandoning or releasing an 
                        extension of credit or a security interest;
                            ``(ii) including in the terms of an 
                        extension of credit, or in a contract or 
                        security agreement relating to such an 
                        extension, convenants, warranties, or other 
                        terms and conditions that relate to 
                        environmental compliance;
                            ``(iii) monitoring or enforcing the terms 
                        and conditions of an extension of credit or 
                        security interest;
                            ``(iv) monitoring or undertaking one or 
                        more inspections of property;
                            ``(v) requiring or conducting a response 
                        action or other lawful means of addressing the 
                        release or threatened release of a hazardous 
                        substance in connection with property prior to, 
                        during, or upon the expiration of the term of 
                        an extension of credit;
                            ``(vi) providing financial or other advice 
                        or counseling in an effort to mitigate, 
                        prevent, or cure default or dimunition in the 
                        value of the property;
                            ``(vii) restructuring, renegotiating, or 
                        otherwise agreeing to alter the terms and 
                        conditions of an extension of credit or 
                        security interest, or exercising forbearance; 
                        or
                            ``(viii) exercising other remedies that may 
                        be available under applicable law for the 
                        breach of any term or condition of the 
                        extension of credit or security agreement;
                if such actions do not rise to the level of 
                participating in management, as defined in 
                subparagraphs (A) and (B).
                    ``(E) When a lender did not participate in 
                management of property prior to foreclosure, then the 
                lender shall not be liable even if such person 
                forecloses on property, sells, re-leases, or liquidates 
                property, maintains business activities, winds up 
                operations, or undertakes any response action with 
                respect to property, or takes other measures to 
                preserve, protect, or prepare property prior to sale or 
                disposition, if such person seeks to sell, re-lease, or 
                otherwise divest the property at the earliest 
                practical, commercially reasonable time, on 
                commercially reasonable terms, taking into account 
                market conditions and legal and regulatory 
                requirements.
            ``(4) The liability of any lender that is liable under any 
        Federal environmental law shall be limited to the unpaid 
        balance of any outstanding extension of credit related to the 
        property or activities forming the basis for the liability.
    ``(b) Fiduciary Environmental Liability.--
            ``(1) Notwithstanding any other provision or rule of 
        Federal law, no fiduciary shall be liable pursuant to any 
        Federal environmental law, except as provided in this section.
            ``(2)(A) Subject to subparagraphs (B) and (C), a fiduciary 
        holding title to property or otherwise affiliated with property 
        solely in a fiduciary capacity shall be personally subject to 
        the obligations and liabilities of any person under an Federal 
        environmental law, to the same extent as if the property were 
        held by the fiduciary free of trust.
            ``(B) The personal obligations and liabilities of a 
        fiduciary referred to in subparagraph (A) shall be limited to 
        the extent to which the assets of the trust or estate are 
        sufficient to indemnify the fiduciary, unless--
                    ``(i) the obligations and liabilities would have 
                arisen even if the person had not served as a 
                fiduciary;
                    ``(ii) the fiduciary's own failure to exercise due 
                care with respect to property caused or contributed to 
                the release of hazardous substances following 
                establishment of the trust, estate, or fiduciary 
                relationship;
                    ``(iii) the fiduciary had a role in establishing 
                the trust, estate, or fiduciary relationship, and such 
                trust, estate, or fiduciary relationship has no 
                objectively reasonable or substantial purpose apart 
                from the avoidance or limitation of liability under an 
                environmental law.
            ``(C) a fiduciary shall not be personally liable for 
        undertaking or directing another to undertake a response 
        action.
            ``(3) Nothing in this section shall be construed to effect 
        the liability, if any, of a person who--
                    ``(A)(i) acts in a capacity other than a fiduciary 
                capacity; and
                    ``(ii) directly or indirectly benefits from a trust 
                or fiduciary relationship; or
                    ``(B)(i) is a beneficiary and a fiduciary with 
                respect to the same fiduciary estate; and
                    ``(ii) as a fiduciary, receives benefits that 
                exceed customary or reasonable compensation, and 
                incidental benefits, permitted under other applicable 
                laws.
    ``(c) Definitions.--For purposes of subsections (a) and (b)--
            ``(1) The term `Federal environmental law' means any 
        Federal statue or rule of common law with the purpose of 
        protection of the environment and any Federal regulation 
        promulgated thereunder and any State statute or regulation 
        created as a Federal approved or delegated program implementing 
        these laws, including but not limited to 7 U.S.C. 136-136y, 15 
        U.S.C. 2601-2692, 15 U.S.C. 2641-2654, 33 U.S.C. 1251-1387, 33 
        U.S.C. 2701-2761, 42 U.S.C. 7401-7642, 42 U.S.C. 6901-6991i, 42 
        U.S.C. 9601-9675, and 42 U.S.C. 13101-13109.
            ``(2) The term `extension of credit' means the making or 
        renewal of any loan, a granting of a line of credit or 
        extending credit in any manner, such as an advance by means of 
        an overdraft or the issuance of a standby letter of credit, and 
        a lease finance transaction--
                    ``(A) in which the lessor does not initially select 
                the leased property and does not, during the lease 
                term, control the daily operation or maintenance of the 
                property; or
                    ``(B) that conforms with regulations issued by the 
                appropriate Federal banking agency or the appropriate 
                state bank supervisor (as these terms are defined in 
                section 3 of the Federal Deposit Insurance Act or with 
                regulations issued by the National Credit Union 
                Administration Board, as appropriate.
            ``(3) The term `fiduciary' means a person who acts for the 
        exclusive benefit of another person as a bona fide fiduciary 
        within the meaning of section 3(31) of the Employee Retirement 
        Income Security Act of 1974, trustee, executor, administrator, 
        custodian, guardian, conservator, receiver, committee of 
        estates of lunatics or other disabled persons, or personal 
        representative; except, that the term `fiduciary' does not 
        include any person--
                    ``(A) who owns, or controls, is affiliated with or 
                takes any action with respect to property on behalf of 
                or for the benefit of a lender or takes any action to 
                protect a lender's extension of credit or security 
                interest (any such person shall be treated as a lender 
                under subsection (a) of this section); or
                    ``(B) who is acting as a fiduciary with respect to 
                a trust or other fiduciary estate that--
                            ``(i) was not created as part of, or to 
                        facilitate, one or more estate plans or 
                        pursuant to the incapacity of a natural person; 
                        and
                            ``(ii) was organized for the primary 
                        purpose of, or is engaged in, actively carrying 
                        on a trade or business for profit.
            ``(4) The term `financial or administrative aspect' means a 
        function such as a credit manager, accounts payable officer, 
        accounts receivable officer, personnel manager, comptroller, or 
        chief financial officer, or any similar function.
            ``(5) The term `foreclosure' and `foreclose' means, 
        respectively, acquiring, and to acquire, property through--
                    ``(A) purchase at sale under a judgment or decree, 
                a power of sale, a nonjudicial foreclosure sale, or 
                from a trustee, deed in lieu of foreclosure, or similar 
                conveyance, or through repossession, if such property 
                was security for an extension of credit previously 
                contracted;
                    ``(B) conveyance pursuant to an extension of credit 
                previously contracted, including, but not limited to, 
                the termination of a lease agreement; or
                    ``(C) any other formal or informal manner by which 
                the person acquires, for subsequent disposition, 
                possession of collateral in order to protect the 
                security interest of the person.
            ``(6) The term `hazardous substance' means any chemical, 
        biological, organic, inorganic, or radioactive pollutants, 
        contaminants, materials, waste or other substances regulated 
        under, defined, listed or included in any Federal environmental 
        law.
            ``(7) The term `lender' means--
                    ``(A) a person that makes a bona fide extension of 
                credit to or takes a security interest from another 
                person and includes a successor or assign of the person 
                which makes the extension of credit or takes the 
                security interest;
                    ``(B) the Federal National Mortgage Association, 
                the Federal Home Loan Mortgage Corporation, the Federal 
                Agricultural Mortgage Corporation, or other entity that 
                in a bona fide manner is engaged in the business of 
                buying or selling loans on interests therein;
                    ``(C) any person engaged in the business of 
                insuring or guaranteeing against default in the 
                repayment of an extension of credit, or acting as a 
                surety with respect to an extension of credit, to other 
                persons; or
                    ``(D) any person regularly engaged in the business 
                of providing title insurance who acquires property as a 
                result of assignment or conveyance in the course of 
                underwriting claims and claims settlement.
            ``(8) The term `operational aspect' means a function such 
        as a facility or plant manager, operations manager, chief 
        operating officer, or chief executive officer.
            ``(9) The term `person' means an individual, firm, 
        corporation, association, partnership, consortium, joint 
        venture, commercial entity, United States Government, State, 
        municipality, commission, political subdivision of a State, or 
        any interstate body.
            ``(10) The term `property' means real, personal and mixed 
        property.
            ``(11) The term `response action' shall have the same 
        meaning as that term is defined in section 101 of the 
        Comprehensive Environmental Response, Compensation and 
        Liability Act.
            ``(12) The term `security interest' means a right under a 
        mortgage, deed of trust, assignment, judgment lien, pledge, 
        security agreement, factoring agreement, or lease, or any other 
        right accruing to a person to secure the repayment of money, 
        the performance of a duty, or some other obligation.
    ``(d) Savings Clause.--Nothing in subsection (a), (b), or (c), 
shall--
            ``(1) affect the rights or immunities or other defense that 
        are already available to lenders or fiduciaries under any 
        Federal environmental law;
            ``(2) be construed to create any liability for any lender 
        or fiduciary; or
            ``(3) create a private right of action against any lender 
        or fiduciary.
    ``(e) Federal Banking and Lending Agency Environmental Liability.--
            ``(1) Governmental entities.--
                    ``(A) Banking and lending agencies.--Except as 
                provided in paragraph (C), a Federal banking or lending 
                agency shall not be liable under any law imposing 
                strict liability for the release or threatened release 
                of petroleum or a hazardous substance at or from 
                property (including any right or interest therein) 
                acquired--
                            ``(i) in connection with the exercise of 
                        receivership or conservatorship authority, or 
                        the liquidation or winding up of the affairs of 
                        an insured depository institution, including 
                        any of its subsidiaries, and bridge bank;
                            ``(ii) in connection with the provision of 
                        loans, discounts, advances, guarantees, 
                        insurance or other financial assistance; or
                            ``(iii) in connection with property 
                        received in any civil or criminal proceeding, 
                        or administrative enforcement action, whether 
                        by settlement or order.
                    ``(B) Application of state law.--Nothing in 
                paragraph (e) shall be construed as preempting, 
                affecting, applying to, or modifying any state law, or 
                any rights, actions, cause of action, or obligations 
                under State law, except that liability under State law 
                shall not exceed the value of the agency's interest in 
                the asset giving rise to such liability. Nothing in 
                this section shall be construed to prevent a Federal 
                banking or lending agency from agreeing with a State to 
                transfer property to such State in lieu of any 
                liability that might otherwise be imposed under State 
                law.
                    ``(C) Limitation.--Notwithstanding paragraph (A), 
                and subject to section 107(d) of the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980, a Federal banking or lending agency that 
                directly caused or and materially contributed to the 
                release of petroleum or a hazardous substance may be 
                liable for removal, remedial, or other response action 
                pertaining to that release.
                    ``(D) Subsequent purchaser.--The immunity provided 
                by paragraphs (A) and (B) shall extend to the first 
                subsequent purchaser of property described in such 
                paragraph from a Federal banking or lending agency, 
                unless such purchaser--
                            ``(i) would otherwise be liable or 
                        potentially liable for all or part of the costs 
                        of the removal, remedial, or other response 
                        action due to a prior relationship with the 
                        property;
                            ``(ii) is or was affiliated with or related 
                        to a party described in subparagraph (i);
                            ``(iii) fails to agree to take reasonable 
                        steps necessary to abate the release or 
                        threatened release or to protect public health 
                        and safety in a manner consistent with the 
                        purposes of applicable Federal environmental 
                        laws; or
                            ``(iv) directly causes or significantly and 
                        materially contributes to any additional 
                        release or threatened release on the property.
                    ``(E) Federal or state action.--Notwithstanding 
                subparagraph (D), if a Federal agency or State 
                environmental agency is required to take remedial 
                action due to the failure of a subsequent purchaser to 
                carry out, in good faith, the agreement described in 
                subparagraph (D)(iii), such subsequent purchaser shall 
                reimburse the Federal or State environmental agency for 
                the costs of such remedial action. Any such 
                reimbursement shall not exceed the increase in the fair 
                market value of the property attributable to the 
                remedial action.
            ``(2) Lien exemption.--Notwithstanding any other provision 
        of law, any property held by a subsequent purchaser referred to 
        in subsection (a)(4) or held by a Federal banking or lending 
        agency shall not be subject to any lien for costs or damages 
        associated with the release or threatened release of petroleum 
        or a hazardous substance existing at the time of the transfer.
            ``(3) Exemption from covenants to remediate.--A Federal 
        banking or lending agency shall be exempt from any law 
        requiring such agency to grant covenants warranting that a 
        removal, remedial, or other response action has been, or will 
        in the future be, taken with respect to property acquired in 
        the manner described in paragraph (e)(1)(A).
            ``(4) Defintions.--For purposes of subsection (e), the 
        following definitions shall apply--
                    ``(A) The term `Federal banking or lending agency' 
                means the Corporation, the Resolution Trust 
                Corporation, the Board of Governors of the Federal 
                Reserve System, the Comptroller of the Currency, the 
                Office of Thrift Supervision, a Federal Reserve Bank, a 
                Federal Home Loan Bank, the Department of Housing and 
                Urban Development, the National Credit Union 
                Administration Board, the Farm Credit Administration, 
                the Farm Credit System Insurance Corporation, the Farm 
                Credit System Assistance Board, the Farmers Home 
                Administration, the Rural Electrification 
                Administration, the Small Business Administration, and 
                any other Federal agency acting in a similar capacity, 
                in any of their capacities, and their agents or 
                appointees.
                    ``(B) The term `hazardous substance' has the same 
                meaning as in section 101(14) of the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980.
                    ``(C) The term `release' has the same meaning as in 
                section 101(22) of the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 1980, and 
                includes the use, storage, disposal, treatment, 
                generation, or transportation of a hazardous substance.
            ``(5) Savings clause.--Nothing in subsection (e) shall--
                    ``(A) affect the rights of immunities or other 
                defenses that are available under this Act or other 
                applicable law to any party, subject to the provisions 
                of this section;
                    ``(B) be construed to create any liability for any 
                party; or
                    ``(C) create a private right of action against an 
                insured depository institution or lender or against a 
                Federal banking or lending agency.''.
    (b) Effective Date.--This section shall take effect upon the date 
of enactment and shall apply to any claim against any lender, fiduciary 
or government agency under any Federal environmental law that has not 
been finally resolved by adjudication or settlement prior to enactment.
                                 <all>