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





                                                  Union Calendar No. 98

104th CONGRESS

  1st Session

                               H. R. 1858

                          [Report No. 104-193]

_______________________________________________________________________

                                 A BILL

 To reduce paperwork and additional regulatory burdens for depository 
                             institutions.

_______________________________________________________________________

                             July 18, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
                                                  Union Calendar No. 98
104th CONGRESS
  1st Session
                                H. R. 1858

                          [Report No. 104-193]

 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

                             July 18, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on June 
                               15, 1995]

_______________________________________________________________________

                                 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.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

            TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

                 Subtitle A--The Home Mortgage Process

Sec. 101. Regulatory authority over disclosures and escrow accounts 
                            under RESPA transferred to Federal Reserve 
                            Board.
Sec. 102. Simplification and unification of disclosures required under 
                            RESPA and TILA for mortgage transactions.
Sec. 103. Increased regulatory flexibility under the Truth in Lending 
                            Act.
Sec. 104. Reductions in RESPA regulatory burdens; clarifying 
                            amendments.
Sec. 105. Disclosures for adjustable rate mortgages.
Sec. 106. Certain charges.
Sec. 107. Exemptions from rescission.
Sec. 108. Tolerances; basis of disclosures.
Sec. 109. Limitation on liability.
Sec. 110. Limitation on rescission liability.
Sec. 111. Calculation of damages.
Sec. 112. Assignee liability.
Sec. 113. Rescission rights in foreclosure.
Sec. 114. Recovery of fees.
Sec. 115. Home ownership debt counseling notification.
Sec. 116. Home Mortgage Disclosure Act.
Sec. 117. Applicability.

           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 financial institutions.
Sec. 126. Increased incentives for lending to low- and moderate-income 
                            communities.
Sec. 127. Prohibition on additional reporting under CRA.
Sec. 128. Technical amendment.
Sec. 129. Duplicative reporting.
Sec. 130. CRA congressional oversight.
Sec. 131. Consultation among examiners.
Sec. 132. Limitation on regulations.

                  Subtitle C--Consumer Banking Reforms

Sec. 141. Truth in Savings.
Sec. 142. Information sharing.
Sec. 143. Electronic Fund Transfer Act clarification.
Sec. 144. Limit on restitution for Truth in Lending violations if 
                            safety and soundness of violator would be 
                            affected.

          Subtitle D--Equal Credit Opportunity Act Amendments

Sec. 151. Short title.
Sec. 152. Findings and purpose.
Sec. 153. Equal Credit Opportunity Act amendments.
Sec. 154. Fair Credit Reporting Act amendments.
Sec. 155. Incentives for self-testing.
Sec. 156. Credit scoring systems.
Sec. 157. Consultation by Attorney General required in nonreferral 
                            cases.
Sec. 158. Effective date.

              Subtitle E--Consumer Leasing Act Amendments

Sec. 161. Short title.
Sec. 162. Congressional findings and declaration of purpose.
Sec. 163. Regulations.
Sec. 164. Consumer lease advertising.
Sec. 165. Statutory penalties.

             Subtitle F--Federal Home Loan Bank Amendments

Sec. 171. Application for membership in the FHLB System.
Sec. 172. 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 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. Elimination of duplicative requirements imposed upon bank 
                            holding companies and other regulatory 
                            relief 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 and 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.
Sec. 212. Disposition of foreclosed assets.
Sec. 213. Increase in certain credit union loan ceilings.

   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. Acceleration of repayment to Treasury.
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 foreign nonbank financial institution 
                            customers.
Sec. 229. Paperwork reduction review.
Sec. 230. Daily confirmations for hold-in-custody repurchase 
                            transactions.
Sec. 231. Required regulatory review of regulations.
Sec. 232. Country risk requirements.
Sec. 233. Audit costs.
Sec. 234. Standards for director and officer liability.
Sec. 235. Foreign bank applications.
Sec. 236. Duplicate examination of foreign banks.
Sec. 237. Second mortgages.
Sec. 238. Streamlining FDIC approval of new State bank powers.
Sec. 239. Repeal of call report attestation requirement.
Sec. 240. Authority of the Comptroller of the Currency.
Sec. 241. National bank community development insurance activities.
Sec. 242. Authorizing bank service companies to organize as limited 
                            liability partnerships.
Sec. 243. Bank investments in Edge Act and agreement corporations.
Sec. 244. Report on the reconciliation of differences between 
                            regulatory accounting principles and 
                            generally accepted accounting principles.
Sec. 245. Waivers authorized for residency requirement for national 
                            bank directors.

                      TITLE III--LENDER LIABILITY

Sec. 301. Lender liability.

    TITLE IV--ANNUAL STUDY AND REPORT ON IMPACT ON LENDING TO SMALL 
                                BUSINESS

Sec. 401. Annual study and report.

            TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

                 Subtitle A--The Home Mortgage Process

SEC. 101. REGULATORY AUTHORITY OVER DISCLOSURES AND ESCROW ACCOUNTS 
              UNDER RESPA TRANSFERRED TO FEDERAL RESERVE BOARD.

    (a) In General.--Sections 4, 5, 6, and 10(d) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) are amended 
by striking ``Secretary'' each place such term appears and inserting 
``Board''.
    (b) Clarification of Purpose.--Section 2(b)(2) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2601(b)(2)) is amended by 
inserting the following before the semicolon at the end: ``without--
                    ``(A) directly regulating settlement services 
                prices; or
                    ``(B) directly regulating wages to bona fide 
                employees that are not designed as a subterfuge to 
                facilitate kickbacks among affiliated companies''.
    (c) Board Defined.--Section 3 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2602) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) the term `Board' means the Board of Governors of the 
        Federal Reserve System.''.
    (d) Negotiated Regulations Under Sections 8 and 9.--Section 8 of 
the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2607) is 
amended by adding at the end the following new subsection:
    ``(e) Negotiated Regulations.--
            ``(1) In general.--The Secretary may not publish a proposed 
        or final regulation under this section and section 9 after the 
        date of the enactment of the Financial Institutions Regulatory 
        Relief Act of 1995 unless the Secretary has used the negotiated 
        rulemaking procedure established under subchapter III of 
        chapter 5 of title 5, United States Code, to attempt to 
        negotiate and develop the rule.
            ``(2) Consistency with purpose.--Any regulation prescribed 
        in accordance with paragraph (1) shall be consistent with the 
        purposes of this title as set forth in section 2.''.
    (e) Administrative Enforcement of Prohibition Against Kickbacks and 
Unearned Fees.--Section 8 of the Real Estate Settlement Procedures Act 
of 1974 (12 U.S.C. 2607) is amended by adding after subsection (e) (as 
added by subsection (d) of this section) the following new subsection:
    ``(f) Administrative Enforcement.--
            ``(1) In general.--Compliance with the requirements of this 
        section and sections 9 and 12 shall be enforced under this 
        Act--
                    ``(A) in the case of an insured depository 
                institution (as defined in section 3 of the Federal 
                Deposit Insurance Act), by the appropriate Federal 
                banking agency (as defined in such section);
                    ``(B) in the case of an insured credit union (as 
                defined in section 101(7) of the Federal Credit Union 
                Act), by the National Credit Union Administration;
                    ``(C) in the case of a bank holding company (as 
                defined in section 2 of the Bank Holding Company Act of 
                1956) and any affiliate of any such holding company 
                (other than an insured depository institution), by the 
                Board;
                    ``(D) in the case of a savings and loan holding 
                company (as defined in section 10 of the Home Owners' 
                Loan Act) and any affiliate of any such holding company 
                (other than an insured depository institution), by the 
                Director of the Office of Thrift Supervision; and
                    ``(E) in the case of any other person, by the 
                Secretary.
            ``(2) Special rules relating to determination of 
        appropriate regulator.--
                    ``(A) Cases of more than 1 appropriate regulator.--
                If, under paragraph (1), a company may be regulated by 
                more than 1 agency, the Board shall determine which 
                agency shall be the responsible agency, notwithstanding 
                paragraph (1).
                    ``(B) Cases involving joint ventures, partnerships, 
                and other affiliated business arrangements.--If any 
                insured depository institution is involved in a joint 
                venture, partnership, or other affiliated business 
                arrangement with any person who is not an insured 
                depository institution, the agency responsible for 
                enforcing this section and sections 9 and 12 with 
                respect to such insured depository institution shall be 
                the agency with such responsibility with respect to 
                such joint venture, partnership, or other affiliated 
                business arrangement.
            ``(3) Interagency cooperation and enforcement guidelines.--
        All the agencies referred to in any subparagraph of paragraph 
        (1) shall cooperate with each other to develop enforcement 
        guidelines and other means for achieving effective compliance 
        with this section and sections 9 and 12.
            ``(4) Preference for civil enforcement over criminal 
        enforcement.--As part of the cooperative efforts required under 
        paragraph (3), the agencies referred to in paragraph (1) shall 
        consider means for achieving compliance with this section and 
        section 9 through the exercise of administrative enforcement 
        authority under this subsection without resorting to criminal 
        enforcement actions under subsection (d) except in appropriate 
        cases.
            ``(5) Effective date.--Paragraphs (1) and (2) shall not 
        take effect until joint interagency cooperation and enforcement 
        guidelines are adopted by all the agencies to which paragraphs 
        (1) and (2) apply and the enforcement authority of the 
        Secretary with respect to this section and sections 9 and 12 
        shall continue until such paragraphs take effect.''.
    (f) Increased Scienter Requirement for Criminal Penalty.--Section 
8(d) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
2607(d)) is amended--
            (1) in paragraph (1), by inserting ``willfully'' after 
        ``persons who''; and
            (2) in paragraph (3), by striking ``was not intentional 
        and''.
    (g) Redesignation of Controlled Business Arrangements as Affiliated 
Business Arrangements.--The Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2601 et seq.) is amended--
            (1) in section 3(7), by striking ``controlled business 
        arrangement'' and inserting ``affiliated business 
        arrangement''; and
            (2) in subsections (c)(4) and (d)(6) of section 8, by 
        striking ``controlled business arrangements'' and inserting 
        ``affiliated business arrangements''.
    (h) Technical and Conforming Amendments.--
            (1) Section 4(a) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2603(a)) is amended by striking 
        ``Federal Home Loan Bank Board'' and inserting ``Director of 
        the Office of Thrift Supervision''.
            (2) Section 8(d)(4) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2607(d)(4)) is amended by 
        inserting ``any other agency described in subsection (f)(1),'' 
        after ``the Secretary,''.
            (3) Section 10(c)(1)(C) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2609(c)(1)(C)) is amended by 
        striking ``Not later than the expiration of the 90-day period 
        beginning on the date of the enactment of the Cranston-Gonzalez 
        National Affordable Housing Act, the'' and inserting ``The''.
            (4) Section 16 of the Real Estate Settlement Procedures Act 
        of 1974 (12 U.S.C. 2614) is amended by striking ``Secretary,'' 
        and inserting ``Board, an agency referred to in any 
        subparagraph of section 8(f)(1),''.
            (5) Section 18 of the Real Estate Settlement Procedures Act 
        of 1974 (12 U.S.C. 2616) is amended--
                    (A) by striking ``Secretary is authorized to'' and 
                inserting ``Board and Secretary may jointly'';
                    (B) by striking ``Secretary'' each place such term 
                appears other than the 1st place and inserting ``Board 
                and Secretary''; and
                    (C) by striking ``determines that such laws'' and 
                inserting ``determine that such laws''.
            (6) Section 19(a) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2617(a)) is amended to read as follows:
    ``(a) Regulations.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        and the Board may prescribe such regulations, make such 
        interpretations, and grant such reasonable exemptions for 
        classes of transactions, as may be necessary to achieve the 
        purposes of this Act.
            ``(2) Application.--
                    ``(A) Board.--The authority of the Board under 
                paragraph (1) shall apply with respect to--
                            ``(i) sections 4, 5, 6, 10, and 12; and
                            ``(ii) sections 3, 7, 17, and 18 to the 
                        extent such sections are applicable with 
                        respect to the sections described in clause 
                        (i).
                    ``(B) Secretary.--The authority of the Secretary 
                under paragraph (1) shall apply with respect to--
                            ``(i) sections 8 and 9; and
                            ``(ii) sections 3, 7, 17, and 18 to the 
                        extent such sections are applicable with 
                        respect to the sections described in clause 
                        (i).''.
            (7) Section 19(b) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2617(b)) is amended by inserting ``, the 
        Board,'' after ``the Secretary''.
            (8) Section 19(c) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2617(c)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``Secretary'' the 1st place 
                        such term appears and inserting ``Board, with 
                        respect to any action to enforce section 4, 5, 
                        6, or 10, and each agency referred to in any 
                        subparagraph of section 8(f)(1), with respect 
                        to any action to enforce section 8, 9, or 
                        12,''; and
                            (ii) by striking ``Secretary'' each place 
                        such term appears other than the 1st place and 
                        inserting ``Board or such other agency''; and
                    (B) in paragraph (2), by striking ``Secretary'' and 
                inserting ``Board or an agency referred to in any 
                subparagraph of section 8(f)(1)''.
            (9) The heading for section 19 of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 2617) is amended 
        to read as follows:

     ``authority of the secretary and the federal reserve board''.

    (i) Repeal of Obsolete Provisions.--The Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended by striking 
sections 13, 14, and 15.

SEC. 102. SIMPLIFICATION AND UNIFICATION OF DISCLOSURES REQUIRED UNDER 
              RESPA AND TILA FOR MORTGAGE TRANSACTIONS.

    (a) In General.--With respect to credit transactions which are 
subject to the Real Estate Settlement Procedures Act of 1974 and the 
Truth in Lending Act, the Board of Governors of the Federal Reserve 
System shall take such action as may be necessary before the end of the 
3-month period beginning on the date of the enactment of this Act--
            (1) to simplify the disclosures applicable to such 
        transactions under such Acts, including the timing of the 
        disclosures; and
            (2) to provide a single format for such disclosures which 
        will satisfy the requirements of each such Act with respect to 
        such transactions.
    (b) Regulations.--To the extent that it is necessary to prescribe 
any regulation in order to effect any changes required to be made under 
subsection (a), the proposed regulation shall be published in the 
Federal Register before the end of the 3-month period referred to in 
subsection (a).
    (c) Recommendations for Legislation.--If the Board of Governors of 
the Federal Reserve System finds that legislative action may be 
necessary or appropriate in order to simplify and unify the disclosure 
requirements under the Real Estate Settlement Procedures Act of 1974 
and the Truth in Lending Act, the Board shall submit a report 
containing recommendations to the Congress concerning such action.

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--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Exemptive Authority.--
            ``(1) In general.--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.
            ``(2) Factors to be considered.--In determining which 
        classes of transactions to exempt in whole or in part, the 
        Board shall consider, among other factors, the following:
                    ``(A) The amount of the loan or closing costs and 
                whether the disclosures, right of rescission, and other 
                provisions are necessary, particularly for small loans.
                    ``(B) Whether the requirements of this title 
                complicate, hinder, or make more expensive the credit 
                process for the class of transactions.
                    ``(C) 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 of 1974 (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 the enactment of the Financial 
        Institutions Regulatory Relief Act of 1995, 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.--The amendments made by subsection (a) shall 
take effect 180 days after the date of the enactment of this Act.
    (c) Second Mortgages.--Section 3(1)(A) of the Real Estate 
Settlement Procedures Act of 1974 (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 
of 1974 (12 U.S.C. 2606) is amended--
            (1) by inserting ``(a) In General.--'' before ``This Act''; 
        and
            (2) by inserting at the end the following new subsection:
    ``(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 which is exempt from the Truth in Lending Act in accordance with 
section 226.3(a) of the regulations prescribed by the Board known as 
`regulation Z' (12 C.F.R. 226.3(a)), as in effect on the date of 
enactment of the Financial Institutions Regulatory Relief Act of 
1995.''.

SEC. 105. DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

    (a) In General.--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) Technical and Conforming Amendment.--Section 127A(b)(3) of the 
Truth in Lending Act (15 U.S.C. 1637a(b)(3)) is amended by striking 
``required under'' and inserting ``referred to in''.
    (c) Alternative to Historical Example.--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) In any variable rate transaction secured by the 
        consumer's principal dwelling with a term greater than 1 year, 
        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.''.
    (d) Ensuring Honoring of Lock-in Promises.--Section 128(b) of the 
Truth in Lending Act (15 U.S.C. 1638(b)) is amended by adding at the 
end the following new paragraph:
    ``(3) In the case of a residential mortgage transaction, the 
disclosures under subsection (a) shall include the following:
            ``(A) The note rate and points, and a statement, if 
        applicable, that these terms are subject to change.
            ``(B) A statement that the creditor must include the 
        disclosed note rate and points in the credit agreement unless, 
        in relation to either or both of those terms--
                    ``(i) the disclosure clearly and conspicuously 
                indicates that the term is subject to change, or
                    ``(ii) in the case of any term to which clause (i) 
                does not apply--
                            ``(I) the creditor has clearly and 
                        conspicuously indicated that the term is 
                        conditioned on closing the transaction within a 
                        prescribed time;
                            ``(II) the creditor has promptly and 
                        clearly communicated to the consumer the 
                        information and documentation that the consumer 
                        is required to provide to the creditor; and
                            ``(III) the consumer has failed to provide 
                        such information and documentation within a 
                        reasonable time after receiving that 
                        communication.''.

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 2d sentence the 
following new sentence: ``The finance charge shall not include fees and 
amounts imposed by third party closing agents (including settlement 
agents, attorneys, and escrow and title companies) if the creditor does 
not expressly require the imposition of the charges or the services 
provided and does not retain the charges.''.
    (b) Mortgage Broker Fees.--Section 106(a) of the Truth in Lending 
Act (15 U.S.C. 1605(a)) is amended by adding at the end the following 
new paragraph:
            ``(6) Mortgage broker fees.''.
    (c) Treatment of Certain Debt Cancellation and Deficiency Waiver 
Contracts.--Section 106(c) of the Truth in Lending Act (15 U.S.C. 
1605(c)) is amended to read as follows:
    ``(c) Treatment of Certain Debt Cancellation and Deficiency Waiver 
Contracts.--Charges or premiums for any insurance or for any voluntary 
noninsurance product, written in connection with any consumer credit 
transaction, that provides protections against loss of or damage to 
property or against part or all of the debtor's liability for amounts 
in excess of the value of the collateral securing the debtor's 
obligation, or against liability arising out of the ownership or use of 
property, shall be included in the finance charge unless a clear and 
specific statement in writing is furnished by the creditor to the 
person to whom the credit is extended, setting forth the cost of the 
insurance or product if obtained from or through the creditor, and 
stating that the person to whom credit is extended may choose the 
person through which the insurance or product is to be obtained.''.
    (d) 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 recording the instrument securing the 
        evidence of indebtedness.''.
    (e) 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 
        for attending or conducting settlement.''.
    (f) 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.
    (g) Ensuring Finance Charges Reflect Cost of Credit.--
            (1) Report.--
                    (A) In general.--Not later than 6 months after the 
                date of the enactment of this Act, the Board of 
                Governors of the Federal Reserve System shall submit to 
                the Congress a report containing recommendations on any 
                regulatory or statutory changes necessary--
                            (i) to ensure that finance charges imposed 
                        in connection with consumer credit transactions 
                        more accurately reflect the cost of providing 
                        credit; and
                            (ii) to address abusive refinancing 
                        practices engaged in solely for the purpose of 
                        avoiding rescission.
                    (B) Report requirements.--In preparing the report 
                under this paragraph, the Board shall--
                            (i) consider the extent to which it is 
                        feasible to include in finance charges all 
                        charges payable directly or indirectly by the 
                        consumer to whom credit is extended, and 
                        imposed directly or indirectly by the creditor 
                        as an incident to the extension of credit 
                        (especially those charges excluded from finance 
                        charges under section 106 of the Truth in 
                        Lending Act as of the date of the enactment of 
                        this Act), excepting only those charges which 
                        are payable in a comparable cash transaction; 
                        and
                            (ii) consult with and consider the views of 
                        affected industries and consumer groups.
            (2) Regulations.--The Board of Governors of the Federal 
        Reserve System shall prescribe any appropriate regulation in 
        order to effect any change included in the report under 
        paragraph (1), and shall publish the regulation in the Federal 
        Register before the end of the 1-year period beginning on the 
        date of enactment of this Act.

SEC. 107. EXEMPTIONS FROM RESCISSION.

    (a) Certain Refinancing.--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 ``; 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 a refinancing of the principal balance 
                then due and any accrued and unpaid finance charges of 
                a residential mortgage transaction as defined in 
                section 103(w), or is any subsequent refinancing of 
                such a transaction; and
                    ``(B) does not provide any new consolidation or new 
                advance.''.
    (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) Tolerances 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--
            ``(1) except as provided in paragraph (2), shall be treated 
        as being accurate for purposes of this title if the amount 
        disclosed as the finance charge--
                    ``(A) does not vary from the actual finance charge 
                by more than an amount equal to \1/2\ of the numerical 
                tolerance corresponding to, and generated by, the 
                tolerance provided by section 107(c) with respect to 
                the annual percentage rate, but in no case may the 
                tolerance under this paragraph be less than $25 or 
                greater than $200; or
                    ``(B) is greater than the amount required to be 
                disclosed under this title; and
            ``(2) shall be treated as being accurate for purposes of 
        section 125 if the amount disclosed as the finance charge does 
        not vary from the actual finance charge by more than an amount 
        equal to 0.5 percent of the total amount of credit extended.''.
    (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 any consumer credit 
transaction subject to this title that is 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--
            ``(1) 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);
                    ``(C) fees and amounts referred to in the 3rd 
                sentence of section 106(a); or
                    ``(D) mortgage broker fees referred to in section 
                106(a)(6);
            ``(2) the form of written notice used by the creditor to 
        inform the obligor of the rights of the obligor under section 
        125 if the creditor provided the obligor with a properly dated 
        form of written notice published and adopted by the Board or a 
        comparable written notice; or
            ``(3) any disclosure relating to the finance charge imposed 
        with respect to the 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.
    ``(b) Exceptions.--Subsection (a) shall not apply to--
            ``(1) any individual action or counterclaim brought under 
        this title which was filed before June 1, 1995;
            ``(2) any class action brought under this title for which a 
        final order certifying a class was entered before January 1, 
        1995;
            ``(3) the named individual plaintiffs in any class action 
        brought under this title which was filed before June 1, 1995; 
        or
            ``(4) any consumer credit transaction with respect to which 
        a timely notice of rescission was sent to the creditor before 
        June 1, 1995.''.
    (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:

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

SEC. 110. LIMITATION ON RESCISSION LIABILITY.

    Section 125 of the Truth in Lending Act (15 U.S.C. 1635) is further 
amended by adding at the end the following new subsection:
    ``(h) Limitation on Rescission.--An obligor shall have no 
rescission rights arising from the form of written notice used by the 
creditor to inform the obligor of the rights of the obligor under this 
section, if the creditor provided the obligor the appropriate form of 
written notice published and adopted by the Board, or a comparable 
written notice of the rights of the obligor, that was properly 
completed by the creditor.''.

SEC. 111. CALCULATION OF DAMAGES.

    Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C. 
1640(a)(2)(A)) is amended--
            (1) by striking ``or (ii)'' and inserting ``(ii)''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, or (iii) in the case of an individual action 
        relating to a credit transaction not under an open end credit 
        plan that is secured by real property or a dwelling, not less 
        than $250 or greater than $2,500''.

SEC. 112. ASSIGNEE LIABILITY.

    (a) Violations Apparent on the Face of Transaction Documents.--
Section 131 of the Truth in Lending Act (15 U.S.C. 1641) is amended by 
adding at the end the following new subsection:
    ``(e) Liability of Assignee for Consumer Credit Transactions 
Secured by Real Property.--
            ``(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 secured by real property 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, any itemization of the amount 
                financed, or any other disclosure of disbursement; or
                    ``(B) the disclosure statement 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 inserting after subsection 
(e) (as added by subsection (a) of this section) the following new 
subsection:
    ``(f) 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. Upon written request by the obligor, the servicer 
        shall provide the obligor, to the best knowledge of the 
        servicer, with the name, address, and telephone number of the 
        owner of the obligation or the master servicer of 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. 113. RESCISSION RIGHTS IN FORECLOSURE.

    Section 125 of the Truth in Lending Act (15 U.S.C. 1635) is amended 
by inserting after subsection (h) (as added by section 110) the 
following new subsection:
    ``(i) Rescission Rights in Foreclosure.--
            ``(1) In general.--Notwithstanding section 139, and subject 
        to the time period provided in subsection (f), in addition to 
        any other right of rescission available under this section for 
        a transaction, upon an action of a creditor to execute 
        foreclosure on the primary dwelling of an obligor securing an 
        extension of credit, the obligor shall have a right to rescind 
        the transaction equivalent to other rescission rights provided 
        by this section, if--
                    ``(A) a mortgage brokers fee is not included in the 
                finance charge in accordance with the laws and 
                regulations in effect at the time the consumer credit 
                transaction was consummated; or
                    ``(B) the form of notice of rescission for the 
                transaction is not the appropriate form of written 
                notice published and adopted by the Board or a 
                comparable written notice, or was not properly 
                completed by the creditor.
            ``(2) Tolerance for disclosures.--Notwithstanding section 
        106(f), and subject to the time period provided in subsection 
        (f), for the purposes of exercising any rescission rights 
        following an action by a creditor to foreclose on the principal 
        dwelling of the obligor securing an extension of credit, the 
        disclosure of the finance charge and other disclosures affected 
        by any finance charge shall be treated as being accurate for 
        purposes of this section if the amount disclosed as the finance 
        charge does not vary from the actual finance charge by more 
        than $35 or is greater than the amount required to be disclosed 
        under this title.''.

SEC. 114. RECOVERY OF FEES.

    Section 125(b) of the Truth in Lending Act (15 U.S.C. 1635) is 
amended--
            (1) in the 1st sentence, by inserting ``, except any charge 
        for an appraisal report or credit report'' after ``other 
        charge''; and
            (2) in the 2d sentence, by striking ``otherwise'' and 
        inserting ``as otherwise required under this subsection''.

SEC. 115. HOME OWNERSHIP DEBT COUNSELING NOTIFICATION.

    Section 106(c) of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x(c)) is amended by striking paragraph (5).

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 2d sentence, by striking ``$10,000,000'' and 
        inserting ``$50,000,000''; and
            (2) by inserting at the end the following new sentences: 
        ``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 at the end the following new 
subsection:
    ``(m) Opportunity To Reduce Compliance Burden.--
            ``(1) A depository institution shall be considered to 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 fifteen 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 through a form of electronic medium, such 
                as computer disc.''.

SEC. 117. APPLICABILITY.

    (a) In General.--The amendments made by subsections (a), (d), (e), 
and (f) of section 106 and sections 108, 112, and 113 shall apply to 
all consumer credit transactions in existence or consummated on or 
after the date of enactment of this Act.
    (b) Exception.--Notwithstanding subsection (a), in the case of--
            (1) an individual action or a counterclaim referred to in 
        section 139(b)(1) of the Truth in Lending Act, as amended by 
        section 109(a) of this Act;
            (2) a class action referred to in section 139(b)(2) of that 
        Act;
            (3) a claim of an individual as a named individual 
        plaintiff in a class action referred to in section 139(b)(3) of 
        that Act; or
            (4) a claim relating to a consumer credit transaction 
        referred to in section 139(b)(4) of that Act;
the Truth in Lending Act shall apply as in effect on the date of the 
consummation of the consumer credit transaction that is the subject of 
the individual action, counterclaim, class action, or claim, 
respectively.

           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. 809. EXAMINATION EXEMPTION.

    ``(a) In General.--A regulated financial institution shall not be 
subject to the examination requirements of this title or any 
regulations issued under this section if the institution and any bank 
holding company which controls such institution have aggregate assets 
of not more than $100,000,000.
    ``(b) Annual Adjustment.--The dollar amount in subsection (a) 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 elect to self-
        certify to the appropriate Federal financial supervisory agency 
        that such institution is in compliance with the goals of this 
        title.
            ``(2) Qualifying institution.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualifying institution' means a financial 
                institution which--
                            ``(i) has not more than $250 million in 
                        assets;
                            ``(ii) has 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
                            ``(iii) received rating under section 
                        807(b)(2) of `satisfactory' or `outstanding' in 
                        the most recent evaluation of such institution 
                        under this title.
                    ``(B) Annual adjustment.--The dollar amount in 
                subparagraph (A) 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) In general.--A qualifying institution shall 
                maintain in every branch a public notice stating that--
                            ``(i) the institution has self-certified 
                        that the institution is satisfactorily helping 
                        to meet the credit needs of its community;
                            ``(ii) the institution maintains--
                                    ``(I) at the main office of such 
                                institution, a public file which 
                                contains a copy of the self-
                                certification to the appropriate 
                                Federal financial supervisory agency; 
                                and
                                    ``(II) a map delineating the 
                                community served by the institution;
                            ``(iii) a list of the types of credit and 
                        services that the institution provides to the 
                        community served by the institution;
                            ``(iv) such other information that the 
                        institution believes demonstrates the 
                        institution's record of helping to meet the 
                        credit needs of its community; and
                            ``(v) every public comment or letter to the 
                        institution (and any response by the 
                        institution) received within the previous 2-
                        year period about the record of the institution 
                        of helping to meet the credit needs of its 
                        community.
                    ``(B) Public file.--A qualifying institution shall 
                maintain a public file containing the contents 
                described in this paragraph at the institution's main 
                office.
            ``(4) Rating.--
                    ``(A) In general.--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).
                    ``(B) Publication.--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.
                    ``(C) Publication constitutes disclosure.--
                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 for purposes of sections 806A and 807.
            ``(5) Regulatory review.--
                    ``(A) Assessment.--During each examination for 
                safety and soundness, a qualifying institution's 
                supervisory agency shall, as part of the agency's 
                review of the institution's loans, assess whether the 
                institution's basis for its self-certification is 
                reasonable based on the public notice and the 
                information contained in the public file pursuant to 
                paragraph (3).
                    ``(B) Examination if self-certification is not 
                reasonable.--If the agency determines that the 
                institution's basis for the institution's self-
                certification is not reasonable, 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.
                    ``(C) Revocation of self-certification.--If an 
                assessment pursuant to subparagraph (B) results in a 
                less than `satisfactory' rating, the agency shall 
                revoke the institution's self-certification and 
                substitute a written evaluation as provided under 
                section 807.
                    ``(D) Period of ineligibility for self-
                certification.--An institution whose self-certification 
                has been revoked may not self-certify pursuant to this 
                subsection during the 5 years succeeding the year in 
                which the self-certification is revoked.
                    ``(E) Subsequent eligibility.--After the end of the 
                period of ineligibility described in subparagraph (D), 
                an institution which meets the requirements for self-
                certification may elect to self-certify.
            ``(6) Prohibition on additional requirements.--No 
        appropriate Federal financial supervisory agency may impose any 
        additional requirements, whether by regulation or otherwise, 
        relating to the self-certification procedure under this 
        subsection.''.

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 the following new section:

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

    ``(a) Publication of Exam Schedule and Opportunity for Comment.--
            ``(1) Publication of notice.--Each appropriate Federal 
        financial supervisory agency shall--
                    ``(A) publish in the Federal Register, 30 days 
                before the beginning of a calendar quarter, a listing 
                of institutions scheduled for evaluation for compliance 
                with this title during such calendar quarter; and
                    ``(B) provide opportunity for written comments from 
                the community on the performance, under this title, of 
                each institution scheduled for evaluation.
            ``(2) Comment period.--Written comments may not be 
        submitted to an appropriate Federal financial supervisory 
        agency pursuant to paragraph (1) after the end of the 30-day 
        period beginning on the first day of the calendar quarter.
            ``(3) Copy of comments.--The agency shall provide a copy of 
        such comments to the institution.
    ``(b) Evaluation.--The appropriate Federal financial supervisory 
agency shall--
            ``(1) evaluate the institution in accordance with the 
        standards contained in section 804; and
            ``(2) prepare and publish a written evaluation of the 
        institution as required under section 807.
    ``(c) Reconsideration of Rating.--
            ``(1) Request for reconsideration.--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.
            ``(2) Procedures for request.--Any such request shall 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.
            ``(3) Basis for request.--Any request for reconsideration 
        under this subsection 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).
            ``(4) Completion of review.--The appropriate Federal 
        financial supervisory agency shall complete any requested 
        reconsideration within 30 days of the filing of the request.
    ``(d) Conclusive Rating.--
            ``(1) In general.--An institution's rating shall become 
        conclusive on the later of--
                    ``(A) 30 days after the rating is disclosed to the 
                public; or
                    ``(B) the completion of any requested 
                reconsideration by the Federal financial supervisory 
                agency.
            ``(2) Rating conclusive of meeting community credit 
        needs.--An institution's rating shall be the conclusive 
        assessment of the institution's record of meeting the credit 
        needs of its community for purposes of section 804 until the 
        institution's next rating, developed pursuant to an 
        examination, becomes conclusive.
            ``(3) Safe harbor.--Institutions which have received a 
        `satisfactory' or `outstanding' rating shall be deemed to have 
        met the purposes of section 804.
            ``(4) Rule of construction.--Notwithstanding any other 
        provision of law, no provision of this section shall be 
        construed as granting a cause of action to any person.''.
    (c) Overall Evaluation of Institution.--Paragraph (2) of section 
804(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(a)) is 
amended to read as follows:
            ``(2) take such record into account in the overall 
        evaluation of the condition of the institution by the 
        appropriate Federal financial supervisory agency.''.

SEC. 125. SPECIAL PURPOSE FINANCIAL INSTITUTIONS.

    (a) In General.--Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903) is amended by inserting after subsection (c) (as 
added by section 123 of this title) the following new subsection:
    ``(d) Special Purpose Institutions.--
            ``(1) In general.--In conducting assessments pursuant to 
        this section at any special purpose institution, the 
        appropriate Federal financial supervisory agency shall--
                    ``(A) consider the nature of business such 
                institution is involved in; and
                    ``(B) assess and take into account the record of 
                the institution commensurate with the amount of 
                deposits (as defined in section 3(1) of the Federal 
                Deposit Insurance Act) received by such institution.
            ``(2) Standards.--Each appropriate Federal financial 
        supervisory agency shall develop standards under which special 
        purpose institutions may be deemed to have complied with the 
        requirements of this title which are consistent with the 
        specific nature of such businesses.''.
    (b) Special Purpose Institution Defined.--Section 803 of the 
Community Reinvestment Act of 1977 (12 U.S.C. 2902) is amended by 
adding at the end the following new paragraph:
            ``(5) Special purpose institutions.--The term `special 
        purpose institution' means a financial institution that does 
        not generally accept deposits from the public in amounts of 
        less than $100,000, such as wholesale, credit card, and trust 
        institutions.''.

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

    (a) In General.--Section 804(b) of the Community Reinvestment Act 
of 1977 (12 U.S.C. 2903(b)) is amended to read as follows:
    ``(b) Positive Consideration of Certain Loans and Investments.--In 
assessing and taking into account the records of a regulated financial 
institution under subsection (a), the appropriate Federal financial 
supervisory agency shall--
            ``(1) consider as a positive factor, consistent with the 
        safe and sound operation of the institution, the institution's 
        investment in or loan to--
                    ``(A) any minority depository institution or 
                women's depository institution (as such terms are 
                defined in section 808(b)) or any low-income credit 
                union;
                    ``(B) any joint venture or other entity or project 
                which promotes the public welfare in any distressed 
                community (as defined by such agency) whether or not 
                the distressed community is located in the local 
                community in which the regulated financial institution 
                is chartered to do business; and
                    ``(C) targeted low- and moderate-income 
                communities, including real property loans to such 
                communities; and
            ``(2) consider equally with other factors capital 
        investment, loan participation, and other ventures undertaken 
        by the institution in cooperation with--
                    ``(A) minority- and women-owned financial 
                institutions and low-income credit unions to the extent 
                that these activities help meet the credit needs of the 
                local communities in which such institutions are 
                chartered; and
                    ``(B) community development corporations in 
                extending credit and other financial services 
                principally to low- and moderate-income persons and 
                small businesses to the extent that such community 
                development corporations help meet the credit needs of 
                the local communities served by the majority-owned 
                institution.''.
    (b) Amendment to Definitions.--Section 803 of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2902) is amended by inserting after 
paragraph (5) (as added by section 125(b) of this subtitle) the 
following new paragraph:
            ``(6) State bank supervisor.--The term `State bank 
        supervisor' has the same meaning as in section 3(r) of the 
        Federal Deposit Insurance Act.''.
    (c) Technical Correction.--The 1st of the 2 paragraphs designated 
as paragraph (2) of section 803 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2902) is amended to read as follows:
                    ``(D) the Director of the Office of Thrift 
                Supervision with respect to any savings association 
                (the deposits of which are insured by the Federal 
                Deposit Insurance Corporation) and any savings and loan 
                holding company (other than a company which is a bank 
                holding company);''.

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.

    ``(a) In General.--
            ``(1) Publication requirement.--Regulations to carry out 
        the purposes of this title shall be published by each 
        appropriate Federal financial supervisory agency.
            ``(2) Prohibition on additional recordkeeping.--Regulations 
        prescribed and policy statements, commentary, examiner 
        guidance, or other supervisory material issued under this title 
        shall not impose any additional recordkeeping on a financial 
        institution.
            ``(3) Prohibition on loan data collection.--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 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 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.''.

SEC. 130. CRA CONGRESSIONAL OVERSIGHT.

    (a) Sense of Congress Relating to Aggressive Oversight.--It is the 
sense of the Congress that the appropriate committees of the House of 
Representatives and the Senate should exercise aggressive oversight of 
the adoption and implementation of any regulation by any appropriate 
Federal financial supervisory agency under the Community Reinvestment 
Act of 1977 after the date of the enactment of this Act.
    (b) Agency Reports Required.--
            (1) In general.--Each appropriate Federal financial 
        supervisory agency shall submit a report to the Congress by 
        December 31, 1996, and by December 31, 1997, on the 
        implementation of all regulations prescribed by such agency 
        under the Community Reinvestment Act of 1977 after the date of 
        the enactment of this Act.
            (2) Requirements relating to preparation of reports.--In 
        preparing each report required under paragraph (1), each 
        appropriate Federal financial supervisory agency shall--
                    (A) solicit and include comments from regulated 
                financial institutions with respect to the regulations 
                which are the subject of the report; and
                    (B) include quantifiable measures of the cost 
                savings achieved under the regulations which are the 
                subject of the report and the effectiveness of such 
                regulations in achieving the purposes of the Community 
                Reinvestment Act of 1977.
            (3) Definitions.--For purposes of this section, the terms 
        ``appropriate Federal financial supervisory agency'' and 
        ``regulated financial institution'' have the same meanings as 
        in section 803 of the Community Reinvestment Act of 1977.

SEC. 131. CONSULTATION AMONG EXAMINERS.

    Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is 
amended by adding at the end the following new subsection:
    ``(j) Consultation Among Examiners.--
            ``(1) In general.--Each appropriate Federal banking agency 
        shall take such action as may be necessary to ensure that 
        examiners employed by the agency--
                    ``(A) consult on examination activities with 
                respect to any depository institution; and
                    ``(B) achieve an agreement and resolve any 
                inconsistencies on the recommendations to be given to 
                such institution as a consequence of any examinations.
            ``(2) Examiner-in-charge.--Each agency shall consider 
        appointing an examiner-in-charge with respect to a depository 
        institution to ensure consultation on examination activities 
        among all of the agency's examiners involved in examinations of 
        such institution.''.

SEC. 132. LIMITATION ON REGULATIONS.

    Section 806 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2905) (as amended by section 127) is amended by adding at the end the 
following new subsections:
    ``(b) Limitation on Regulations.--No regulation may be prescribed 
under this title by any Federal agency which would--
            ``(1) require any regulated financial institution to--
                    ``(A) make any loan or enter into any other 
                agreement on the basis of any discriminatory criteria 
                prohibited under any law of the United States; or
                    ``(B) make any loan to, or enter into any other 
                agreement with, any uncreditworthy person that would 
                jeopardize the safety and soundness of such 
                institution; or
            ``(2) prevent or hinder in any way a financial 
        institution's full responsibility to provide credit to all 
        segments of the community.
    ``(c) Encourage Loans to Creditworthy Borrowers.--Regulations 
prescribed under this title shall encourage regulated financial 
institutions to make loans and extend credit to all creditworthy 
persons, consistent with safety and soundness.''.

                  Subtitle C--Consumer Banking Reforms

SEC. 141. TRUTH IN SAVINGS.

    (a) Purpose.--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 subtitle 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) Prohibition on Misleading or Inaccurate Advertisements and 
Disclosures.--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, including any 
inaccurate or misleading description of a free or no-cost account, or 
that misrepresents its deposit contracts.''.
    (c) Account Information Upon Opening an Account.--Section 264 of 
the Truth in Savings Act (12 U.S.C. 4304) is amended to read as 
follows:

``SEC. 264. ACCOUNT INFORMATION.

    ``(a) In General.--Each depository institution shall disclose fees, 
charges, penalties, and interest rates applicable to each class of 
accounts offered by the institution in accordance with this section.
    ``(b) Information on Fees and Charges.--Each depository institution 
shall disclose the following information with respect to any account to 
a consumer at the time the account is opened, or at such earlier time 
as a consumer may request (and no additional information may be 
required to be disclosed under this subtitle by regulation or otherwise 
with respect to such account):
            ``(1) A description of all fees, periodic service charges, 
        penalties, and interest rates which may be charged or assessed 
        against the account (or against the account holder in 
        connection with such account), the amount of any such fees, 
        charges, or penalties (or the method by which such amount will 
        be calculated), and the conditions under which any such amount 
        will be assessed.
            ``(2) All minimum balance requirements that affect fees, 
        charges, and penalties, including a clear description of how 
        each such minimum balance is calculated.
            ``(3) Any minimum amount required with respect to the 
        initial deposit in order to open the account.
    ``(c) Information on Interest Rates.--The disclosures required 
under subsections (a) and (b) with respect to any account shall include 
the following information:
            ``(1) Any annual rate of simple interest.
            ``(2) The frequency with which interest will be compounded 
        and credited.
    ``(d) No Regulations Authorized.--No regulations may be prescribed 
with respect to this section by the Board or any agency referred to in 
this title, including any regulation to define any terms used in this 
section.''.
    (d) Disclosure of Change in Terms.--Section 265 of the Truth in 
Savings Act (12 U.S.C. 4304) is amended to read as follows:

``SEC. 265. DISCLOSURE OF CHANGE IN TERMS.

    ``If any change is made in any item required to be disclosed under 
section 264, all account holders who may be affected by such change 
shall be notified by mail and provided with a description of such 
change at least 30 days before the effective date of the change.''.
    (e) Repeal of Sections.--Sections 266, 268, 271, and 273 of the 
Truth in Savings Act (12 U.S.C. 4304, 4305, 4307, 4310, and 4312, 
respectively) are hereby repealed.
    (f) Redesignation of Sections.--Section 267, 270, 272 of the Truth 
in Savings Act (12 U.S.C. 4306, 4309, and 4311) are redesignated as 
sections 266, 268, and 269, respectively.
    (g) Redesignation and Amendment of Section 269.--Section 269 of the 
Truth in Savings Act (12 U.S.C. 4308) (as determined before the 
redesignation made by subsection (f) of this section) is amended to 
read as follows:

``SEC. 267. REGULATIONS.

    ``(a) In General.--The Board, after consultation with each agency 
referred to in section 268(a) and public notice and opportunity for 
comment, shall prescribe regulations to carry out the purpose and 
provisions of this subtitle.
    ``(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.''.
    (h) Redesignation and Amendment of Section 274.--Section 274 of the 
Truth in Savings Act (12 U.S.C. 4313) is amended to read as follows:

``SEC. 270. DEFINITIONS.

    ``For the purposes of this subtitle, the following definitions 
shall apply:
            ``(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.
            ``(2) Deposit broker.--The term `deposit broker'--
                    ``(A) has the meaning given to such term in section 
                29(f)(1) of the Federal Deposit Insurance Act; and
                    ``(B) includes any person who solicits any amount 
                from any other person for deposit in an insured 
                depository institution.
            ``(3) Depository institution.--The term `depository 
        institution'--
                    ``(A) means an institution described in clause (i), 
                (ii), (iii), (iv), (v), or (vi) of section 19(b)(1)(A) 
                of the Federal Reserve Act; and
                    ``(B) does not include nonautomated credit unions 
                which were not required to comply with the requirements 
                of this title as of the date of the enactment of the 
                Financial Institutions Regulatory Relief Act of 1995 
                pursuant to the determination of the National Credit 
                Union Administration Board.
            ``(4) Interest.--The term `interest' includes dividends 
        paid with respect to share accounts which are accounts within 
        the meaning of paragraph (1).
            ``(5) Board.--The term `Board' means the Board of Governors 
        of the Federal Reserve System.''.
    (i) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the effective date of regulations prescribed by 
        the Board of Governors of the Federal Reserve System to 
        implement such amendments.
            (2) Authority to issue regulations.--Notwithstanding 
        paragraph (1), the Board of Governors of the Federal Reserve 
        System shall prescribe regulations in accordance with the 
        amendment made by subsection (g).
            (3) Continued applicability of provisions until effective 
        date of new regulations.--The Truth in Savings Act, as in 
        effect on the day before the date of the enactment of this Act, 
        shall continue to apply on and after such date until the 
        effective date of the amendments to such Act under this 
        section.

SEC. 142. 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 
        of any depository institution, 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, before 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, the 
        term `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 such term is defined in section 603(b) of the 
        Fair Credit Reporting Act) 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 of any 
        depository institution, regardless of the source of manner in 
        which the information is obtained or furnished.
            ``(3) Rule of construction.--Any depository institution, or 
        any affiliate or subsidiary of any depository institution, 
        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 the Fair Credit Reporting Act or other similar 
        law.''.

SEC. 143. ELECTRONIC FUND TRANSFER ACT CLARIFICATION.

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

SEC. 144. LIMIT ON RESTITUTION FOR TRUTH IN LENDING VIOLATIONS IF 
              SAFETY AND SOUNDNESS OF VIOLATOR WOULD BE AFFECTED.

    Section 108(e)(3)(A) of the Truth in Lending Act (15 U.S.C. 
1607(e)(3)(A)) is amended--
            (1) by striking ``in any such case, the agency may 
        require'' and inserting ``in any such case, the agency may (i) 
        require'';
            (2) by striking ``, except that with respect to any 
        transaction consummated after the effective date of section 608 
        of the Truth in Lending Simplification and Reform Act, the 
        agency shall'' and inserting ``; or (ii)''; and
            (3) by striking ``reasonable,'' and inserting ``reasonable 
        if, in the case of an agency referred to in paragraph (1), (2), 
        or (3) of subsection (a), the agency determines that a partial 
        adjustment or the making of partial payments over an extended 
        period is necessary to avoid causing the creditor to become 
        undercapitalized (as determined in accordance with regulations 
        prescribed by such agency under section 38 of the Federal 
        Deposit Insurance Act);''.

          Subtitle D--Equal Credit Opportunity Act Amendments

SEC. 151. SHORT TITLE.

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

SEC. 152. FINDINGS AND PURPOSE.

    (a) Findings.--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) Purpose.--It is the purpose of this subtitle 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. 153. EQUAL CREDIT OPPORTUNITY ACT AMENDMENTS.

    (a) Notice of Adverse Action.--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 30 days after receipt by the 
                        creditor of a request made within 60 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--
                                    ``(I) that fact and the name, 
                                address, and telephone number of the 
                                consumer reporting agency making the 
                                report;
                                    ``(II) the consumer's right to 
                                obtain, under section 612, a free copy 
                                of a consumer report on the consumer, 
                                from the consumer reporting agency 
                                referred to in subclause (I) within the 
                                30-day period provided under such 
                                section; and
                                    ``(III) the consumer's right to 
                                dispute, under section 611, with a 
                                consumer reporting agency the accuracy 
                                or completeness of any information in a 
                                consumer report furnished by the 
                                agency.
                            ``(iii) if credit is denied or the charge 
                        for credit 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, within a reasonable period of time, 
                        upon the consumer's written request for 
                        information within 60 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) Technical and Conforming Amendment.--Section 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, address, and telephone number 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 such subsection.''.
    (c) Reasonable Procedures To Assure Compliance.--Section 706 of the 
Equal Credit Opportunity Act (15 U.S.C. 1691e) is amended by adding at 
the end the following new subsection:
    ``(l) Reasonable Procedures To Assure Compliance.--No person shall 
be held liable for any violation of subsection 701(d) if such person 
shows by a preponderance of the evidence that at the time of the 
alleged violation the person maintained reasonable procedures to assure 
compliance with the provisions of the subsection.''.

SEC. 154. 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 place 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. 155. INCENTIVES FOR SELF-TESTING.

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

``SEC. 704A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

    ``(a) In General.--If a creditor--
            ``(1) conducts, or authorizes an independent third party to 
        conduct, a self-test of the creditor's lending or any part of 
        the creditor's lending operations in order to determine the 
        level or effectiveness of compliance with this title by the 
        creditor; and
            ``(2) has identified discriminatory practices and has taken 
        or is taking appropriate corrective actions to address the 
        discrimination,
any report or results of such a self-test may not be obtained or used 
by any applicant, department, or agency in any proceeding or civil 
action brought under this title.
    ``(b) Results of Self-Testing.--No provision of this section shall 
be construed as preventing an applicant, department, or agency from 
obtaining and using the results of any self-testing in any proceeding 
or civil action brought under this title if--
            ``(1) the creditor or any other entity conducted such 
        activity at the request of a department or agency;
            ``(2) the creditor or any other entity, or any person 
        acting on behalf of the creditor or other entity--
                    ``(A) voluntarily releases or discloses all, or any 
                part of, such results; or
                    ``(B) refers to or describes such results as a 
                defense to charges of unlawful discrimination against 
                such creditor, person, or entity; or
            ``(3) the results are sought by the applicant, department, 
        or agency by means of a discovery request for the purposes of 
        determining an appropriate penalty or remedy for a violation of 
        this title.
    ``(c) Regulations.--The appropriate Federal department or agency 
shall prescribe regulations, after notice and opportunity for comment, 
which determine what types of `self-tests' are sufficiently extensive 
so as to constitute a determination of the level or effectiveness of a 
creditor's compliance with this title.''.
            (2) Referrals to the attorney general.--Section 706(g) of 
        the Equal Credit Opportunity Act (15 U.S.C. 1691e(g)) is 
        amended--
                    (A) by striking ``(g) The agencies'' and inserting 
                ``(g) Referrals to the Attorney General.--
            ``(1) In general.--The agencies''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(2) Limitation on referrals of self-testing results.--
                    ``(A) In general.--No agency shall be required to 
                refer any report or results of a self-test relating to 
                any creditor to the Attorney General if the creditor--
                            ``(i) has already identified discriminatory 
                        practices as the result of self-testing 
                        instituted by the creditor to determine 
                        compliance with this title; and
                            ``(ii) has taken or is taking appropriate 
                        corrective actions to address the 
                        discrimination.
            ``(3) Enforcement under other laws.--No provision of this 
        section shall be construed as limiting the authority of the 
        agency to enforce the provisions of this title under any other 
        provision of law.''.
            (3) Referrals to hud.--Section 706(k) of the Equal Credit 
        Opportunity Act (15 U.S.C. 1691e(k)) is amended by adding at 
        the end the following: ``No such agency shall be required to 
        notify the Secretary of Housing and Urban Development or the 
        applicant that the agency has reason to believe that a 
        violation of this title or the Fair Housing Act occurred if the 
        reason is based on a result of self-testing instituted by the 
        creditor to determine compliance with this title, and the 
        creditor has already identified the possible violation and has 
        taken or is taking appropriate corrective actions to address 
        the possible violation. No provisions of this section shall be 
        construed as limiting the authority of the agency to enforce 
        the provisions of this title under any other provision of 
        law.''.
            (4) Clerical amendment.--The table of sections for title 
        VII of the Consumer Credit Protection Act is amended by 
        inserting after the item relating to section 704 the following 
        new item:

``704A. Incentives for self-testing and self-correction.''.
    (b) Fair Housing.--The Fair Housing Act (42 U.S.C. 3601 et seq.) is 
amended by inserting after section 814 the following new section:

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

    ``(a) In General.--If any person--
            ``(1) conducts, or authorizes an independent third party to 
        conduct, a self-test of that person's residential real estate 
        related lending activities, or any part of such activities, in 
        order to determine the level or effectiveness of compliance 
        with this title by the person; and
            ``(2) has identified discriminatory practices and has taken 
        or is taking appropriate corrective actions to address the 
        discrimination,
any report or results of such a self-test may not be obtained or used 
by any aggrieved person, complainant, department, or agency in any 
proceeding or civil action brought under this title.
    ``(b) Results of Self-Testing.--No provision of this section shall 
be construed as preventing an aggrieved person, complainant, 
department, or agency from obtaining and using the results of any self-
testing as described in subsection (a) in any proceeding or civil 
action brought under this title if--
            ``(1) the creditor or any other entity conducted such 
        activity at the request of a department or agency;
            ``(2) the creditor or any other entity, or any person 
        acting on behalf of the creditor or other entity--
                    ``(A) voluntarily releases or discloses all, or any 
                part of, such results; or
                    ``(B) refers to or describes such results as a 
                defense to charges of unlawful discrimination against 
                such creditor, person, or entity; or
            ``(3) the results are sought by the aggrieved person, 
        complainant, department, or agency by means of a discovery 
        request for the purposes of determining an appropriate penalty 
        or remedy for a violation of this title.
    ``(c) Regulations.--The appropriate Federal department or agency 
shall prescribe regulations, after notice and opportunity for comment, 
which determine what types of `self-tests' are sufficiently extensive 
so as to constitute a determination of the level or effectiveness of a 
creditor's compliance with this title.''.

SEC. 156. 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) Credit Scoring System.--
            ``(1) In general.--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--
                    ``(A) does not utilize any category protected under 
                subsection (a);
                    ``(B) does not 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; and
                    ``(C) does not use as a factor in such system any 
                criterion that has a disparate impact on a category 
                protected under subsection (a) unless use of the 
                criterion is justified by business necessity and there 
                is no less discriminatory alternative available.
            ``(2) Age as a factor.--No provision of this subsection 
        shall be construed as precluding a creditor from using age as a 
        factor in a credit scoring system under paragraph (1) to the 
        extent otherwise permitted under this title.''.

SEC. 157. CONSULTATION BY ATTORNEY GENERAL REQUIRED IN NONREFERRAL 
              CASES.

    (a) Equal Credit Opportunity.--Section 706(h) of the Equal Credit 
Opportunity Act (15 U.S.C. 1691e(h)) is amended by adding at the end 
the following new sentence: ``Before bringing a civil action against 
any creditor described in paragraph (1), (2), or (3) of section 704(a), 
the Attorney General shall consult with the appropriate agency under 
such paragraph.''.
    (b) Fair Housing Act.--Section 814(a) of the Fair Housing Act (42 
U.S.C. 3614(a)) is amended by adding at the end the following new 
sentence: ``Before bringing a civil action under the preceding sentence 
against any person or group of persons described in paragraph (1), (2), 
or (3) of section 704(a) of the Equal Credit Opportunity Act with 
respect to a violation of 805(a) of this title, the Attorney General 
shall consult with the appropriate agency under such paragraph.''.

SEC. 158. EFFECTIVE DATE.

    (a) In General.--Except with respect to the requirements of 
subsection (b), this Act shall take effect at the end of the 270-day 
period beginning on the date of the enactment of this Act.
    (b) Implementing Regulations.--The Board of Governors of the 
Federal Reserve System shall prescribe regulations to implement this 
Act and such regulations shall be published in final form before the 
end of the 180-day period beginning on the date of the enactment of 
this Act.

              Subtitle E--Consumer Leasing Act Amendments

SEC. 161. SHORT TITLE.

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

SEC. 162. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) 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 of leasing 
        by consumers.
            (2) 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.
    (b) Purposes.--
            (1) It is the purpose of this subtitle 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 the consumer and avoid the uninformed use of 
        leasing, and to protect the consumer against inaccurate and 
        unfair leasing practices.
            (2) 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 
        subtitle 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. 163. REGULATIONS.

    (a) In General.--Chapter 5 of title I of the Consumer Credit 
Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end 
the following new section:

``SEC. 187. REGULATIONS.

    ``(a) Regulations Authorized.--
            ``(1) 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 this chapter, to prevent any 
        circumvention of the chapter, and to facilitate compliance with 
        the requirements of the chapter.
            ``(2) Classifications, adjustments.--The regulations 
        prescribed under paragraph (1) 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.--
            ``(1) In general.--Any regulation of the Board, or any 
        amendment or interpretation of any regulation of the Board, 
        that requires a disclosure different from the disclosures 
        previously required shall have an effective date of the October 
        1 that follows the date of promulgation by at least 6 months.
            ``(2) Longer period.--The Board may, in the Board's 
        discretion, lengthen the period of time referred to in 
        paragraph (1) to permit lessors to adjust their forms to 
        accommodate new requirements.
            ``(3) Shorter period.--The Board may also shorten the 
        period of time referred to in paragraph (1) if the Board makes 
        a specific finding that such action is necessary to comply with 
        the findings of a court or to prevent unfair or deceptive 
        practices.
            ``(4) Compliance before effective date.--Lessors may comply 
        with any newly promulgated disclosure requirement before the 
        effective date of such requirement.''.
    (b) Clerical Amendment.--The table of sections for chapter 5 of 
title I of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) 
is amended by inserting after the item relating to section 186 the 
following new item:

``187. Regulations.''.

SEC. 164. CONSUMER LEASE ADVERTISING.

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

``SEC. 184. CONSUMER LEASE ADVERTISING.

    ``(a) In General.--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) Advertising Medium Not Liable.--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.''.

SEC. 165. STATUTORY PENALTIES.

    Section 185(a) of the Consumer Credit Protection Act (15 U.S.C. 
1667d(a)) is amended by adding at the end the following new sentence: 
``Notwithstanding the preceding sentence, a creditor shall only have 
liability determined under section 130(a)(2) for failing to comply with 
the requirements of paragraph (2), (8), (9), or (10) of section 182 or 
for failing to comply with disclosure requirements under State law for 
any term which the Board has determined to be substantially the same in 
meaning under section 186 as any of the terms referred to in section 
182.''.

             Subtitle F--Federal Home Loan Bank Amendments

SEC. 171. 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 of a Federal home loan bank under this section may 
become a member by submitting the institution's 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. 172. 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 any other provision of law, audits by 
        the Comptroller General of the United States of the financial 
        transactions of a Federal home loan bank shall not be limited 
        to periods during which Government capital has been invested in 
        the bank. 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, 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--
            (1) in paragraph (1)(A), by striking ``No'' and inserting 
        ``Except as provided in paragraph (3), no''; and
            (2) by adding 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.--Except with respect to insured 
                        depository institutions described in paragraph 
                        (6), no insured depository institution 
                        controlled by the acquiring bank holding 
                        company has received 1 of the 2 lowest 
                        composite ratings at the later of the 
                        institution's most recent examination or 
                        subsequent review.
                    ``(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 to be 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, before the conclusion of the period provided in 
                paragraph (5)(B), advised the bank holding company that 
                a notice under paragraph (1) is required.
                    ``(F) Compliance criterion.--During the 12-month 
                period ending on the date on which the bank holding 
                company proposes to commence an activity or 
                acquisition, no administrative enforcement action has 
                been commenced, and no cease and desist order has been 
                issued pursuant to section 8 of the Federal Deposit 
                Insurance Act, against the bank holding company or any 
                depository institution subsidiary of the 
holding company and no such enforcement action, order, or other 
administrative enforcement proceeding is pending as of such date.
            ``(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 ten 
                business days after commencing the activity.
                    ``(B) Activities permitted by order and 
                acquisitions.--
                            ``(i) In general.--At least 12 business 
                        days before 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 shall provide 
                        written notice of the proposal to the Board, 
                        unless the Board determines that no notice or a 
                        shorter notice period is appropriate.
                            ``(ii) Description of activities and 
                        terms.--A notification under this subparagraph 
                        shall include a description of the proposed 
                        activities and the terms of any proposed 
                        acquisition.
            ``(6) Recently acquired institutions.--Insured depository 
        institutions which have been acquired by a bank holding company 
        during the 12-month period preceding the date on which the 
        company proposes to commence an activity or acquisition 
        pursuant to paragraph (3) may be excluded for purposes of 
        paragraph (4)(B)(ii) if--
                    ``(A) the bank holding company has developed a plan 
                for the institution to restore the capital and 
                management of the institution which is acceptable to 
                the appropriate Federal banking agency; and
                    ``(B) 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.
            ``(7) Adjustment of percentages.--The Board may, by 
        regulation, adjust the percentages and the manner in which the 
        percentages of insured depository institutions are calculated 
        under paragraph (4)(B)(i), (4)(D), or paragraph (6)(B) 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) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1841(o)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Capital terms.--
                    ``(A) Insured depository institutions.--With 
                respect to insured depository institutions, the terms 
                `well-capitalized', `adequately capitalized', and 
                `uncapitalized' 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 terms `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.''; 
                and
            (2) by adding at the end the following new paragraphs:
            ``(8) Lead insured depository institutions.--
                    ``(A) In general.--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.
                    ``(B) Branch or agency.--For purposes of this 
                paragraph 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.
            ``(9) Well managed.--The term `well managed' means--
                    ``(A) in the case of any company or depository 
                institution which receives examinations, the 
                achievement of--
                            ``(i) a CAMEL composite rating of 1 or 2 
                        (or an equivalent rating under an equivalent 
                        rating system) in connection with the most 
                        recent examination or subsequent review of such 
                        company or institution; and
                            ``(ii) at least a satisfactory rating for 
                        management, if such rating is given; or
                    ``(B) in the case of a company or depository 
                institution that has not received an examination 
                rating, the existence and use of managerial resources 
                which the Board determines are satisfactory.''.

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

    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.--
            ``(1) In general.--Notwithstanding paragraph (3) or (5) of 
        subsection (a) and subject to paragraphs (5) and (6), 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 subparagraph (G) if all of the following 
        conditions have been met:
                    ``(A) Financial and managerial criteria.--
                            ``(i) Well capitalized bank holding 
                        company.--Both at the time of and immediately 
                        after the proposed transaction, the acquiring 
                        bank holding company is well capitalized.
                            ``(ii) 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.
                            ``(iii) 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.
                            ``(iv) No undercapitalized insured 
                        depository institutions.--At the time of the 
                        transaction, no insured depository institution 
                        controlled by the acquiring bank holding 
                        company is undercapitalized.
                            ``(v) 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.--Except with respect to 
                                insured depository institutions 
                                described in paragraph (2), no insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                received 1 of the 2 lowest composite 
                                ratings at the later of the 
                                institution's most recent examination 
                                or subsequent review.
                    ``(B) No unsatisfactory cra ratings.--Except with 
                respect to insured depository institutions described in 
                paragraph (3), no insured depository institution 
                controlled by the acquiring bank holding company has 
                received a `needs to improve' or `substantial 
                noncompliance' composite rating as a result of the 
                institution's most recent examination under the 
                Community Reinvestment Act of 1977.
                    ``(C) 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.
                    ``(D) Size of acquisition.--
                            ``(i) Asset size.--The book value of the 
                        total assets to be 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.
                    ``(E) Interstate acquisitions.--Board approval of 
                the transaction is not prohibited under subsection (d).
                    ``(F) Compliance criterion.--During the 12-month 
                period ending on the date of the transaction, no 
                administrative enforcement action has been commenced, 
                and no cease and desist order has been issued pursuant 
                to section 8 of the Federal Deposit Insurance Act, 
                against any bank holding company involved in the 
                transaction or any depository institution subsidiary of 
                any such holding company and no such enforcement 
                action, order, or other administrative enforcement 
                proceeding is pending as of such date.
                    ``(G) Other considerations.--Board approval of the 
                transaction is not prohibited under subsection (c)(3).
                    ``(H) Notification.--The acquiring bank holding 
                company provides written notice of the transaction, 
                including a description of the terms of the 
                transaction, to the Board and the Attorney General, 
                simultaneously, at least 15 business days (or such 
                shorter period as permitted by the Board) before the 
                transaction is consummated.
                    ``(I) No board disapproval.--Before the end of the 
                15-day period (or the shorter period) referred to in 
                subparagraph (H), the Board has not required an 
                application under subsection (a).
            ``(2) Special rule relating to the requirement for well 
        managed institutions.--Insured depository institutions which 
        have been acquired by a bank holding company during the 12-
        month period preceding the date of the transaction may be 
        excluded for purposes of paragraph (1)(A)(v)(II) if--
                    ``(A) the bank holding company has developed a plan 
                for the institution to restore the capital and 
                management of the institution which is acceptable to 
                the appropriate Federal banking agency; and
                    ``(B) 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.
            ``(3) Special rule relating to the requirement for 
        community investment.--Insured depository institutions acquired 
        during the 12-month period preceding the date of the 
        transaction may be excluded for purposes of paragraph (1)(B) if 
        the bank holding company has developed a plan to restore the 
        performance of the institution to at least a `satisfactory' 
        rating under the Community Reinvestment Act of 1977 which is 
        acceptable to the appropriate Federal banking agency.
            ``(4) Adjustment of percentages.--The Board may by 
        regulation adjust the percentages and the manner in which the 
        percentages of insured depository institutions are calculated 
        under subparagraph (A)(v)(I) or (D) of paragraph (1) or 
        paragraph (2)(B) if the Board determines that such adjustment 
        is consistent with safety and soundness and the purposes of 
        this Act.
            ``(5) Advice of attorney general.--The Attorney General 
        shall advise the Board during the period referred to in 
        paragraph (1)(H) in writing if any competitive concerns exist 
        with respect to the transaction.
            ``(6) Waiver of postapproval waiting period.--If the 
        Attorney General advises the Board that no competitive concerns 
        exist with respect to the transaction, the provisions of 
        section 11(b) relating to a postapproval waiting shall not 
        apply with respect to such transaction.''.

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

    (a) Bank Merger Act.--Section 18(c) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)) 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, if applicable;
                    ``(B) the acquiring, assuming, or resulting 
                institution complies with all applicable provisions of 
                section 44, if any, as if the merger, consolidation, or 
                acquisition were approved under this subsection;
                    ``(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; and
                    ``(D) after receiving such notice, the agency does 
                not require the institution to submit an application 
                with respect to such transaction and so notifies the 
                institution.''.
    (b) National Bank Consolidation and Merger Act.--
            (1) Consolidations.--Section 2 of the National Bank 
        Consolidation and Merger Act (12 U.S.C. 215) is amended--
                    (A) in subsection (a), by adding at the end the 
                following new sentence:
``No approval by the Comptroller of the Currency is required under this 
subsection for a transaction which involves the consolidation of banks 
that, at the time of the consolidation, are all subsidiaries (as 
defined in section 3 of the Federal Deposit Insurance Act) of the same 
company.''; and
                    (B) in subsection (b)--
                            (i) by striking ``, and thereafter the 
                        consolidation shall be approved by the 
                        Comptroller''; and
                            (ii) by striking ``when such consolidation 
                        is approved by the Comptroller''.
            (2) Mergers.--Section 3 of the National Bank Consolidation 
        and Merger Act (12 U.S.C. 215a) is amended--
                    (A) in subsection (a), by adding at the end the 
                following new sentence:
``No approval by the Comptroller of the Currency is required under this 
subsection for a transaction which involves the merger of banks that, 
at the time of the merger, are all subsidiaries (as defined in section 
3 of the Federal Deposit Insurance Act) of the same company.''; and
                    (B) in subsection (b)--
                            (i) by striking ``, and thereafter the 
                        merger shall be approved by the Comptroller''; 
                        and
                            (ii) by striking ``when such merger shall 
                        be approved by the Comptroller''.

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

    (a) In General.--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 
                amended by subparagraph (A) of this paragraph) as 
                clauses (i) and (ii), respectively; and
            (3) by striking subparagraph (G) and redesignating the 
        subsequent subparagraphs accordingly.
    (b) Technical and Conforming Amendment.--Section 5156A(b)(1) of the 
Revised Statutes of the United States (12 U.S.C. 215c(b)(1)) is amended 
by striking ``section 5(d)(3) of the Federal Deposit Insurance Act 
or''.
    (c) Clerical Amendment.--The heading for section 5(d)(3)(E) of the 
Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)(E)) is amended by 
striking ``for approval, generally''.

SEC. 205. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED UPON BANK 
              HOLDING COMPANIES AND OTHER REGULATORY RELIEF UNDER THE 
              HOME OWNERS' LOAN ACT.

    (a) Exemption for Bank Holding Companies.--Section 10 of the Home 
Owners' Loan Act (12 U.S.C. 1467a) is amended by adding at the end the 
following new subsection:
    ``(t) Exemption for Bank Holding Companies.--This section shall not 
apply to a bank holding company that is subject to the Bank Holding 
Company Act of 1956 or any company controlled by such bank holding 
company (other than a savings association).''.
    (b) Definition of Savings and Loan Holding Company.--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:
                    ``(D) Savings and loan holding company.--
                            ``(i) In general.--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) Exception for bank holding 
                        company.--The term `savings and loan holding 
                        company' does not include any company which is 
                        registered under, and subject to, the 
                        provisions of the Bank Holding Company Act of 
                        1956, or any company directly or indirectly 
                        controlled by such company.''.
    (c) Amendments to the Bank Holding Company Act of 1956.--Section 
4(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(i)) is 
amended by adding at the end the following new paragraphs:
            ``(4) Solicitation of views.--
                    ``(A) Notice to director.--Upon receiving any 
                application or notice by a bank holding company to 
                acquire directly or indirectly a savings association 
                under subsection (c)(8), the Board shall solicit the 
                Director's comments and recommendations with respect to 
                such acquisition.
                    ``(B) Comment period.--The comments and views of 
                the Director under subparagraph (A) with respect to any 
                acquisition subject to such subparagraph shall be 
                transmitted to the Board within 30 days of the receipt 
                by the Director of the notice relating to such 
                acquisition (or such shorter period as the Board may 
                specify if the Board advises the Director that an 
                emergency exists which requires expeditious action).
            ``(5) Examination.--
                    ``(A) Scope.--The Board shall consult with the 
                Director, as appropriate, in establishing the scope of 
                an examination by the Board of a bank holding company 
                that controls directly or indirectly a savings 
                association.
                    ``(B) Access to inspection reports.--Upon the 
                request of the Director, the Board shall furnish the 
                Director with a copy of any inspection report, 
                additional examination materials, or supervisory 
                information relating to any bank holding company which 
                directly or indirectly controls a savings association.
            ``(6)  Coordination of enforcement efforts.--The Board and 
        the Director shall cooperate in any enforcement action against 
        any bank holding company which controls a savings association, 
        if the relevant conduct involves such association.
            ``(7) Director defined.--For purposes of this section, the 
        term `Director' means the Director of the Office of Thrift 
        Supervision.''.
    (d) Alternative Test.--Section 10(m) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(m)) is amended--
            (1) in paragraph (1), by striking ``(2) and (7)'' and 
        inserting ``(2), (7), and (8)''; and
            (2) by adding at the end the following new paragraph:
            ``(8) Alternative test.--Any savings association which 
        meets the requirements set forth in section 7701(a)(19)(C) of 
        the Internal Revenue Code of 1986 shall be deemed to be a 
        qualified thrift lender and any qualified thrift lender shall 
        be deemed to meet the requirements of such section.''.

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

    Section 2(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(g)) is amended--
            (1) by striking paragraph (3);
            (2) by inserting ``and'' after the semicolon at the end of 
        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 ``(i) No branch'' and inserting ``(i) 
        Relocation.--
            ``(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 or subsection (b) or (c), the 
        consent and approval of the Comptroller of the Currency shall 
        not be required for a national bank to establish and operate, 
        or to retain and operate, a branch or seasonal agency if--
                    ``(A) the bank is well capitalized (as defined in 
                section 38 of the Federal Deposit Insurance Act and 
                regulations prescribed by the Comptroller of the 
                Currency 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 of 1977; and
                    ``(D) the Comptroller of the Currency is otherwise 
                authorized to grant approval under this section to such 
                bank to establish and operate, or to retain and 
                operate, a branch or seasonal agency at the proposed 
                location.
            ``(3) Certain branches deemed to have approved 
        applications.--A branch or seasonal agency established by a 
        national bank 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 
preceding 2 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 
                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 of 1977; and
                    ``(D) the Board is otherwise 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 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 as 
                result of the bank's most recent examination under the 
                Community Reinvestment Act of 1977; and
                    ``(D) the Corporation is otherwise 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 AND REQUIREMENTS FOR ATMs AND 
              SIMILAR FACILITIES.

    (a) Definition of Branch Under National Bank Act.--Section 5155(j) 
of the Revised Statutes (12 U.S.C. 36(j)) is amended--
            (1) by striking ``(j) The term'' and inserting ``(j) 
        Branch.--
            ``(1) In general.--The term''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Certain proprietary atms and remote servicing 
        units.--The term `branch' does not include any automated teller 
        machine or remote service unit which is owned and operated by a 
        depository institution--
                    ``(A) primarily for the benefit of the institution 
                and the affiliates of the institution; and
                    ``(B) which could operate a branch at the location 
                of such machine or unit.''.
    (b) Definition of Branch Under Federal Deposit Insurance Act.--
Section 3(o) of the Federal Deposit Insurance Act (12 U.S.C. 1813(o)) 
is amended--
            (1) by striking ``(o) The term'' and inserting ``(o) 
        Definitions Relating to Branches.--
            ``(1) Domestic branch.--
                    ``(A) In general.--The term''; and
            (2) by striking ``lent; and the term'' and inserting 
        ``lent.
                    ``(B) Certain proprietary atms and remote servicing 
                units.--The term `domestic branch' does not include any 
                automated teller machine or remote service unit which 
                is owned and operated by a depository institution--
                            ``(i) primarily for the benefit of the 
                        institution and the affiliates of the 
                        institution; and
                            ``(ii) which could operate a branch at the 
                        location of such machine or unit.
            ``(2) Foreign branch.--The term''.

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: ``or, in 
the case of a bank which 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), the amount which is equal to 150 
percent of the capital stock and surplus of such bank''.

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

    Section 32(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1831i(d)) is amended to read as follows:
    ``(d) Additional Information.--
            ``(1) In general.--Any notice submitted to an appropriate 
        Federal banking agency with respect to an individual by any 
        insured depository institution or depository institution 
        holding company pursuant to subsection (a) shall include--
                    ``(A) the information described in section 
                7(j)(6)(A) about the individual; and
                    ``(B) such other information as the agency may 
                prescribe by regulation.
            ``(2) Waiver.--An appropriate Federal banking agency may 
        waive the requirement of this section by regulation or on a 
        case-by-case basis consistent with safety and soundness.''.

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--
            (1) by striking ``and opportunity for hearing''; and
            (2) by striking ``approval by the Board prior to January 1, 
        1971.'' and inserting the following: ``approval by the Board 
        prior to January 1, 1971, except that, after March 30, 1997, it 
        shall be closely related to banking or managing or controlling 
        banks and a proper incident thereto to provide insurance as a 
        principal, agent, or broker in any State, in full compliance 
        with the laws and regulations of such State that apply 
        uniformly to each type of insurance license or authorization in 
        that State, including laws that restrict a bank in that State 
        from having an affiliate, agent, or employee in that State 
        licensed to provide insurance as principal, agent, or broker. 
        The Board shall prescribe regulations concerning insurance 
        affiliations that provide equivalent treatment for all stock 
        and mutual fund insurance companies that control or are 
        affiliated with a bank, and fully accommodate and are 
        consistent with State law.''.

SEC. 212. DISPOSITION OF FORECLOSED ASSETS.

    Section 4(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)(2)) is amended--
            (1) by striking ``for not more than one year at a time''; 
        and
            (2) by striking ``but no such extensions shall extend 
        beyond a date five years'' and inserting ``and, in the case of 
        a bank holding company which has not disposed of such shares 
        within 5 years of the date such shares were acquired, the Board 
        may, upon the application of such company, grant additional 
        exemptions if, in the Board's judgment, such extension would 
        not be detrimental to the public interest and either the bank 
        holding company has made a good faith attempt to dispose of 
        such shares during such 5-year period or the disposal of such 
        shares during such 5-year period would have been detrimental to 
        the company, but the aggregate duration of such extensions 
        shall not extend 10 years''.

SEC. 213. INCREASE IN CERTAIN CREDIT UNION LOAN CEILINGS.

    Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C. 
1757(5)(A)) is amended--
            (1) in clause (iv), by striking ``$10,000'' and inserting 
        ``$50,000''; and
            (2) in clause (v), by striking ``$10,000'' and inserting 
        ``$50,000''.

   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--
            (1) by striking subsection (h); and
            (2) by redesignating subsections (i) (as amended by section 
        207(a) of this Act), (j) (as amended by section 208(a) of this 
        Act), (k), and (l) as subsections (h), (i), (j), and (k), 
        respectively.

SEC. 222. BRANCH CLOSURES.

    (a) In General.--Section 42 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831r-1) is amended by adding at the end the following new 
subsection:
    ``(e) Scope of Application.--
            ``(1) In general.--This section shall not apply with 
        respect to--
                    ``(A) an automated teller machine;
                    ``(B) a branch which--
                            ``(i) has been acquired through merger, 
                        consolidation, purchase, assumption, or other 
                        method; and
                            ``(ii) is located--
                                    ``(I) within 2.5 miles of another 
                                branch of the acquiring institution; or
                                    ``(II) within a neighborhood 
                                currently being served by another 
                                branch of the acquiring institution,
                if such other branch of the acquiring institution is 
                expected to continue to provide banking services to 
                substantially all of the customers currently served by 
                the branch acquired;
                    ``(C) a branch which is closing and reopening at a 
                location which is--
                            ``(i) within 2.5 miles of the location of 
                        the branch being closed; or
                            ``(ii) within the same neighborhood as the 
                        branch being closed,
                if the branch at the new location is expected to 
                continue to provide banking services to substantially 
                all of the customers served by the branch at the former 
                location;
                    ``(D) a branch that is closed in connection with--
                            ``(i) an emergency acquisition under--
                                    ``(I) section 11(n); or
                                    ``(II) subsections (f) or (k) of 
                                section 13; or
                            ``(ii) any assistance provided by the 
                        Corporation under section 13(c); and
                    ``(E) 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.
            ``(2) Regulations.--The appropriate Federal banking agency 
        shall, by regulation, determine the circumstances under which 
        any exemption under paragraph(1)(E) may be granted.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply as if such amendment had been included in section 42 of the 
Federal Deposit Insurance Act as of the date of the 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.--
            ``(1) In general.--This section shall not be construed as 
        prohibiting 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 with such institution or holding 
        company if the depository institutions or depository holding 
        companies with which the management official serves hold, 
        together with all the affiliates of such institutions or 
        holding companies, in the aggregate no more that 20 percent of 
        the deposits in each relevant geographic banking market where 
        offices of the depository institutions or depository holding 
        companies or their affiliates are located.
            ``(2) Relevant geographic banking market defined.--For 
        purposes of paragraph (1), the term `relevant geographic 
        banking market' means--
                    ``(A) the area defined by the boundaries identified 
                by the Board of Governors of the Federal Reserve 
                System;
                    ``(B) if the Board has not defined such boundaries, 
                the area defined by the boundaries of the Ranally 
                Metropolitan Area in which the office of the depository 
                institution or the depository institution holding 
                company is located; and
                    ``(C) if the office of such institution or company 
                is not located within a Ranally Metropolitan Area, the 
                area defined by the county (or an equivalent area of 
                general local government) in which such office is 
                located.''.
    (b) Dual Service Among Larger Organizations.--Section 204 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3203) is 
amended to read as follows:

``SEC. 204. DUAL SERVICE AMONG LARGER ORGANIZATIONS.

    ``(a) In General.--If a depository institution, depository 
institution holding company, or depository institution affiliate of any 
such institution or company has total assets exceeding $2,500,000,000, 
a management official of such institution, company, or affiliate may 
not serve as a management official of any other depository institution, 
depository institution holding company, or depository institution 
affiliate of any such institution or company which--
            ``(1) is not an affiliate of the institution, company, or 
        affiliate of which such person is a management official; and
            ``(2) has total assets exceeding $1,500,000,000.
    ``(b) CPI Adjustments.--The dollar amounts 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) in subsection (b), by striking the 2d sentence; and
            (3) 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 ``title''; 
        and
            (3) by striking subsections (b) and (c).

SEC. 224. ACCELERATION OF REPAYMENT TO TREASURY.

    The Appraisal Subcommittee of the Financial Institutions 
Examination Council shall repay to the Secretary of the Treasury the 
funds specified in section 1108 of Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 by not later than September 30, 
1998, and the Secretary shall deposit such funds in the general fund of 
the Treasury.

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.--
            (1) Employee benefit plans.--Section 22(h)(2) of the 
        Federal Reserve Act (12 U.S.C. 375b(2)) is amended--
                    (A) by redesignating subparagraphs (A), (B), and 
                (C) as clauses (i), (ii), and (iii), respectively, and 
                moving the left margins of such clauses 2 ems to the 
                right;
                    (B) by striking ``(2) Preferential terms 
                prohibited.--A member bank'' and inserting ``(2) 
                Preferential terms prohibited.--
                    ``(A) In general.--A member bank''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) Exception.--No provision of this paragraph 
                shall be construed as prohibiting extensions of credit 
                that constitute a benefit or compensation program that 
                is widely available to and used by employees of the 
                member bank, including employees who are not executive 
                officers of the bank.''.
            (2) Exception for extensions of credit to executive 
        officers and directors of nonbank affiliates.--Section 
        22(h)(8)(B) of the Federal Reserve Act (12 U.S.C. 375b(8)(B)) 
        is amended to read as follows:
                    ``(B) Exception.--The Board may, by regulation, 
                make exceptions to subparagraph (A) for an executive 
                officer or director of a subsidiary of a company that 
                controls the member bank if--
                            ``(i) the executive officer or director 
                        does not have authority to participate, and 
                        does not participate, in major policymaking 
                        functions of the member bank; and
                            ``(ii) the assets of such subsidiary do not 
                        exceed 10 percent of the consolidated assets of 
                        a company that controls the member bank and 
                        such subsidiary (and is not controlled by any 
                        other company).''.
            (3) Recordkeeping requirements.--Section 22(h)(10) of the 
        Federal Reserve Act (12 U.S.C. 375b(10)) is amended 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.''.
    (b) Reporting Requirements.--
            (1) Unnecessary reports.--Section 22(g) of the Federal 
        Reserve Act (12 U.S.C. 375a) is amended--
                    (A) by striking paragraphs (6) and (9); and
                    (B) by redesignating paragraphs (7), (8), and (10) 
                as paragraphs (8), (9), and (10), respectively.
            (2) Unnecessary reports.--Section 7 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1817) is amended by striking 
        subsection (k).
            (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 striking subparagraph (G); and
                    (B) by redesignating subparagraphs (H) and (I) as 
                subparagraphs (G) and (H), respectively.
    (c) Amendments Relating to Loans to Executive Officers.--Section 
22(g) of the Federal Reserve Act (12 U.S.C. 375a) (as amended by 
subsection (a) of this section) is amended--
            (1) in paragraph (1)(D), by striking ``of any one of the 
        three categories respectively referred to in paragraphs (2), 
        (3), and (4)'' and inserting ``of any category referred to in 
        paragraph (2), (3), (4), (5), or (6)'';
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (6) and (7), respectively;
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Home equity lines of credit.--A member bank may make 
        a revolving open-end extension of credit to any executive 
        officer of the bank if the credit--
                    ``(A) does not exceed $100,000; and
                    ``(B) is secured by a dwelling that is owned by 
                such officer and used by the officer as a residence.
            ``(5) Loans secured by marketable assets.--A member bank 
        may extend credit to any executive officer of the bank if the 
        credit is secured by readily marketable assets of a value not 
        exceeding such amount as the Board may establish by 
        regulation.''; and
            (4) in paragraph (7) (as so redesignated by paragraph (2) 
        of this subsection) by striking ``(4)'' each place such term 
        appears and inserting ``(6)''.

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

    (a) Small Bank Size Discretion.--Section 10(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)) is amended--
            (1) by redesignating paragraph (9) as paragraph (10);
            (2) by redesignating the 2d of the 2 paragraphs designated 
        as paragraph (8) as paragraph (9); and
            (3) in paragraph (9) (as so redesignated), by striking 
        ``$175,000,000'' and inserting ``$250,000,000''.
    (b) Inflation Adjustment.--Section 10(d) of the Federal Deposit 
Insurance Act (12 U.S.C. 1820(d)) is amended by inserting after 
paragraph (10) (as so redesignated in subsection (a)(1) of this 
section) the following new paragraph:
            ``(11) Annual cpi adjustment.--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) Coordinated Federal and State Examinations.--The Federal 
banking agencies (as defined in section 3 of the Federal Deposit 
Insurance Act) shall submit semiannual reports to the Congress on the 
progress made by such agencies in implementing the requirements of 
section 10(d)(6) of the Federal Deposit Insurance Act until such 
agencies submit a final report that--
            (1) the examination system provided for in such section is 
        in place; and
            (2) such system provides for full coordination of 
        examinations of State depository institutions with State bank 
        supervisors.

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 FOREIGN NONBANK FINANCIAL INSTITUTION 
              CUSTOMERS.

    (a) In General.--Section 5327(a)(1) of title 31, United States 
Code, is amended to read as follows:
            ``(1) is a financial institution (other than a foreign bank 
        (as defined in section 101(b) of the International Banking Act 
        of 1978)) which is a foreign person; and''.
    (b) Technical and Conforming Amendment.--The heading for section 
5327 of title 31, United States Code, is amended by inserting ``foreign 
nonbank'' after ``of''.
    (c) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by striking the item relating 
to section 5327 and inserting the following new item:

``5327. Identification of foreign nonbank financial institutions.''.

SEC. 229. PAPERWORK REDUCTION REVIEW.

    Not later than 180 days after the date of enactment of this Act, 
each appropriate Federal banking agency and the National Credit Union 
Administration, in consultation with insured depository institutions, 
insured credit unions, and other interested parties, shall--
            (1) review the extent to which current regulations require 
        insured depository institutions and insured credit unions 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 and the 
term ``insured credit union'' has the same meaning as in section 101(7) 
of the Federal Credit Union Act.

SEC. 230. DAILY CONFIRMATIONS FOR HOLD-IN-CUSTODY REPURCHASE 
              TRANSACTIONS.

    Before the end of the 1-year period beginning on the date of the 
enactment of this Act, 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 and of brokers 
and dealer registered under such Act 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 clear and conspicuous disclosure before entering into any 
side agreement, in a form prescribed by the Secretary, that adequately 
informs the counterparty of the benefits of receiving such daily 
written confirmations.

SEC. 231. REQUIRED REGULATORY REVIEW OF REGULATIONS.

    (a) In General.--Not less frequently than once every 10 years, the 
Financial Institutions Examination Council (hereafter in this section 
referred to as the ``Council'') and each appropriate Federal banking 
agency (as defined in section 3(q) of the Federal Deposit Insurance 
Act) represented on the Council shall conduct a review of all 
regulations prescribed by the Council or by any such agency, 
respectively, in order to identify outdated or otherwise unnecessary 
regulatory requirements imposed upon insured depository institutions.
    (b) Process.--In conducting the review under subsection (a), the 
Council or the appropriate Federal banking agency shall--
            (1) categorize the regulations by type (such as consumer 
        regulations, safety and soundness regulations, or such other 
        designations 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 the regulations 
        that are outdated, unnecessary, or unduly burdensome.
    (c) Complete Review.--The Council or the appropriate Federal 
banking agency shall ensure that the notice and comment period 
described in subsection (b)(2) is conducted with respect to all 
regulations described in subsection (a) not less frequently than once 
every 10 years.
    (d) Regulatory Response.--The Council or the appropriate Federal 
banking agency shall--
            (1) publish in the Federal Register a summary of the 
        comments received under this section, identifying significant 
        issues raised and providing comment on such issues; and
            (2) eliminate unnecessary regulations to the extent that 
        such action is appropriate.
    (e) Report to Congress.--Not later than 30 days after carrying out 
subsection (d)(1), the Council shall provide to the Congress a report, 
which shall include--
            (1) a summary of any significant issues raised by public 
        comments received by the Council and the appropriate Federal 
        banking agencies under this section and the relative merits of 
        such issues; and
            (2) an analysis of whether the appropriate Federal banking 
        agency involved is able to address the regulatory burdens 
        associated with such issues by regulation, or whether such 
        burdens must be addressed by legislative action.

SEC. 232. COUNTRY RISK REQUIREMENTS.

    Subsections (a)(1) and (b) of section 905 of the International 
Lending Supervision Act of 1983 (12 U.S.C. 3904) are amended by 
striking ``shall'' and inserting ``may''.

SEC. 233. AUDIT COSTS.

    (a) In General.--
            (1) Auditor attestations.--Section 36 of the Federal 
        Deposit Insurance At (12 U.S.C. 1831m) is amended--
                    (A) in subsection (a)(2)(A)(ii), by striking 
                ``subsections (c) and (d)'' and inserting ``subsection 
                (c)'';
                    (B) by striking subsections (c) and (e); and
                    (C) by redesignating subsections (d), (f), (g), 
                (h), (i), and (j) as subsections (c), (d), (e), (f), 
                (g), and (h), respectively.
            (2) Public availability.--Section 36(a)(3) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by 
        inserting at the end the following new sentence: 
        ``Notwithstanding the preceding sentence, the Corporation and 
        the appropriate Federal banking agencies may designate certain 
        information as privileged and confidential and not available to 
        the public.''.
    (b) Exemption for Well-Capitalized and Well-Managed Insured 
Depository Institutions.--Section 36 of the Federal Deposit Insurance 
Act (12 U.S.C. 1831m) (as amended by subsection (a) of this section) is 
amended by adding at the end the following new subsection:
    ``(i) Exemption for Well-Capitalized and Well-Managed Insured 
Depository Institutions.--No provision of this section other than 
subsection (c) shall apply with respect to any insured depository 
institution which is well-capitalized and well-managed.''.
    (c) Technical and Conforming Amendments.--
            (1) Paragraph (1)(B) of section 36(e) of the Federal 
        Deposit Insurance Act (as so redesignated by subsection 
        (a)(1)(C) of this section) is amended by striking ``(b)(2), 
        (c), and (d)'' and inserting ``(b)(2) and (c)''.
            (2) Paragraph (1) of section 36(g) of the Federal Deposit 
        Insurance Act (as so redesignated by subsection (a)(1)(C) of 
        this section) is amended by striking ``(d)'' and inserting 
        ``(c)''.

SEC. 234. STANDARDS FOR DIRECTOR AND OFFICER LIABILITY.

    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), by inserting ``(other than an outside 
        director)'' after ``any other person''; and
            (3) in paragraph (4), by inserting ``or outside director'' 
        after ``or accountant)''.

SEC. 235. FOREIGN BANK APPLICATIONS.

    (a) Provisions Relating to Establishment of Bank Offices.--Section 
7(d) of the International Banking Act of 1978 (12 U.S.C. 3105(d)) is 
amended--
            (1) in paragraph (2), by striking ``The'' and inserting 
        ``Except as provided in paragraph (6), the'';
            (2) in paragraph (5), by striking ``Consistent with the 
        standards for approval in paragraph (2), the'' and inserting 
        ``The''; and
            (3) by adding at the end the following new paragraphs:
            ``(6) Exception.--
                    ``(A) In general.--If the Board is unable to find 
                under paragraph (2) that a foreign bank is subject to 
                comprehensive supervision or regulation on a 
                consolidated basis by the appropriate authorities in 
                its home country, the Board may nevertheless approve an 
                application under paragraph (1) by such foreign bank 
                if--
                            ``(i) the appropriate authorities in the 
                        home country of such foreign bank are working 
                        to establish arrangements for the consolidated 
                        supervision of such bank; and
                            ``(ii) all other factors are consistent 
                        with approval.
                    ``(B) Additional conditions.--The Board, after 
                requesting and considering the views of the appropriate 
                State bank supervisor or the Comptroller of the 
                Currency, as the case may be, may impose such 
                conditions or restrictions relating to activities or 
                business operations of the proposed branch, agency, or 
                commercial lending company subsidiary, including 
                restrictions on sources of funding, as are considered 
                appropriate in the public interest.
                    ``(C) Modification of conditions.--Any condition or 
                restriction imposed by the Board under this subsection 
                in connection with the approval of an application may 
                be varied or withdrawn where such modification is 
                consistent with the public interest.
            ``(7) Time period for board action.--
                    ``(A) Final action.--The Board shall take final 
                action on any application under paragraph (1) within 
                180 days of receipt of the application, except that the 
                Board may extend for an additional 180 days the period 
                within which to take final action on such application, 
                after providing notice of, and the reasons for, the 
                extension to the applicant foreign bank and any 
                appropriate State bank supervisor or the Comptroller of 
                the Currency, as the case may be.
                    ``(B) Failure to submit information.--The Board may 
                deny any application if it has not received information 
                requested from the applicant foreign bank or 
                appropriate authorities in the home country in 
                sufficient time to permit the Board to evaluate such 
                information adequately within the time periods for 
                final action set forth in subparagraph (A).
                    ``(C) Waiver.--A foreign bank may waive the 
                applicability of subparagraph (A) with respect to any 
                such application.''.
    (b) Provision Relating To Termination of Bank Offices.--Section 
7(e)(1)(A) of the International Banking Act of 1978 (12 U.S.C. 
3105(e)(1)(A)) is amended--
            (1) by striking ``(A)'' and inserting ``(A)(i)'';
            (2) by striking ``; or'' and inserting ``; and''; and
            (3) by inserting at the end the following new clause:
                    ``(ii) the appropriate authorities in the home 
                country are not making progress in establishing 
                arrangements for the comprehensive supervision or 
                regulation of such foreign bank on a consolidated 
                basis; or''.
    (c) Uniform Terminations of Foreign Bank Offices, Agencies, 
Branches, and Subsidiaries by the Federal Reserve System.--
            (1) In general.--Section 7(e)(1) of the International 
        Banking Act of 1978 (12 U.S.C. 3105(e)(1)) is amended--
                    (A) by inserting ``or the Comptroller of the 
                Currency'' after ``State bank supervisor'';
                    (B) by inserting ``or a Federal branch or agency'' 
                after ``commercial lending company subsidiary'' the 1st 
                place such term appears; and
                    (C) in the last sentence, by inserting ``or a 
                Federal branch or agency'' after ``commercial lending 
                company subsidiary''.
            (2) Technical and conforming amendment.--Section 7(e) of 
        the International Banking Act of 1978 (12 U.S.C. 3105(e)) is 
        amended--
                    (A) by striking paragraph (5); and
                    (B) by redesignating paragraphs (6) and (7) as 
                paragraphs (5) and (6), respectively.

SEC. 236. DUPLICATE EXAMINATION OF FOREIGN BANKS.

    Section 7(c)(1) of the International Banking Act of 1978 (12 U.S.C. 
3105(c)(1)) is amended--
            (1) by adding after clause (ii) of subparagraph (B) the 
        following new clause:
                            ``(iii) Avoidance of duplication.--In 
                        exercising its authority under this paragraph, 
                        the Board shall take all reasonable measures to 
                        reduce burden and avoid unnecessary duplication 
                        of examinations.'';
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) On-site examination.--Each Federal branch or 
                agency, and each State branch or agency, of a foreign 
                bank shall be subject to on-site examination by a 
                Federal banking agency or State bank supervisor as 
                frequently as would a national bank or State bank, 
                respectively, by its appropriate Federal banking 
                agency.''; and
            (3) by amending subparagraph (D) to read as follows:
                    ``(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. 237. SECOND MORTGAGES.

    (a) In General.--Section 103(aa)(1) of the Truth in Lending Act (15 
U.S.C. 1602(aa)(1)) is amended--
            (1) by inserting ``a subordinate mortgage on'' after 
        ``secured by''; and
            (2) by striking ``a residential mortgage transaction''.
    (b) Effect on Pending Cases.--Any administrative enforcement 
proceeding or other action which--
            (1) is pending on the date of the enactment of this Act; 
        and
            (2) is based on regulations in effect as of such date under 
        the Truth in Lending Act with respect to high-cost residential 
        mortgage transactions which are not subordinate mortgages,
shall be dismissed as of such date.

SEC. 238. STREAMLINING FDIC APPROVAL OF NEW STATE BANK POWERS.

    (a) In General.--Section 24(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831a(a)) is amended to read as follows:
    ``(a) Activities Generally.--
            ``(1) In general.--An insured State bank may not engage as 
        principal in any type of activity that is not permissible for a 
        national bank unless--
                    ``(A) the bank has given the Corporation written 
                notice of the bank's intention to engage in such 
                activity at least 60 days before commencing to engage 
                in the activity and within such 60-day period (or 
                within the extended period provided under paragraph 
                (2)) the Corporation has not disapproved the activity; 
                and
                    ``(B) the State bank is, and continues to be, in 
                compliance with applicable capital standards prescribed 
                by the appropriate Federal banking agency.
            ``(2) Extension of period.--The Corporation may extend the 
        60-day period referred to in paragraph (1) for issuing a notice 
        of disapproval with respect to any activity for an additional 
        30 days.
            ``(3) Contents of notice.--Any notice submitted by a State 
        bank under paragraph (1)(A) shall contain such information as 
        the Corporation may require.
            ``(4) Basis for disapproval.--The Corporation may 
        disapprove an activity for a State bank under this subsection 
        unless the Corporation determines that the activity would pose 
        no significant risk to the appropriate insurance fund.''.
    (b) Subsidiaries of Insured State Banks.--Section 24(d)(1) of the 
Federal Deposit Insurance Act (12 U.S.C. 1831a(d)(1)) is amended to 
read as follows:
            ``(1) Activities generally.--
                    ``(A) In general.--A subsidiary of an insured State 
                bank may not engage as principal in any type of 
                activity that is not permissible for a subsidiary of a 
                national bank unless--
                            ``(i) the subsidiary has given the 
                        Corporation written notice of the subsidiary's 
                        intention to engage in such activity at least 
                        60 days before commencing to engage in the 
                        activity and within such 60-day period (or 
                        within the extended period provided under 
                        paragraph (2)) the Corporation has not 
                        disapproved the activity; and
                            ``(ii) the bank is, and continues to be, in 
                        compliance with applicable capital standards 
                        prescribed by the appropriate Federal banking 
                        agency.
                    ``(B) Extension of period.--The Corporation may 
                extend the 60-day period referred to in subparagraph 
                (A) for issuing a notice of disapproval with respect to 
                any activity for an additional 30 days.
                    ``(C) Contents of notice.--Any notice submitted by 
                a subsidiary of an insured State bank under 
                subparagraph (A)(i) shall contain such information as 
                the Corporation may require.
                    ``(D) Basis for disapproval.--The Corporation may 
                disapprove an activity for a subsidiary of an insured 
                State bank under this paragraph unless the Corporation 
                determines that the activity would pose no significant 
                risk to the appropriate insurance fund.''.

SEC. 239. REPEAL OF CALL REPORT ATTESTATION REQUIREMENT.

    Section 5211(a) of the Revised Statutes (12 U.S.C. 161(a)) is 
amended by striking the 4th sentence.

SEC. 240. AUTHORITY OF THE COMPTROLLER OF THE CURRENCY.

    (a) State Supervision.--Chapter 1 of title LXII of the Revised 
Statutes of the United States (12 U.S.C. 21 et seq.) is amended--
            (1) by redesignating section 5136A as section 5136C; and
            (2) by inserting after section 5136 (12 U.S.C. 24) the 
        following new section:

``SEC. 5136A. STATE SUPERVISION OF INSURANCE.

    ``(a) State Licensing of Insurance Activities.--
            ``(1) In general.--Subject to paragraph (2), no provision 
        of section 5136, any other section of this title, or section 13 
        of the Federal Reserve Act may be construed as limiting or 
        otherwise impairing the authority of any State to regulate--
                    ``(A) the extent to which, and the manner in which, 
                a national bank may engage within the State in 
                insurance activities pursuant to section 5136B of this 
                chapter or section 13 of the Federal Reserve Act;
                    ``(B) the manner in which a national bank may 
                engage within the State in insurance activities 
                pursuant to section 5136(b)(2)(B) of the Revised 
                Statutes of the United States; or
                    ``(C) the manner in which a national bank may 
                engage within the State in insurance activities 
                pursuant to section 5136(b)(2)(A) of the Revised 
                Statutes of the United States through, and limited to, 
                consumer disclosure requirements or licensing 
                requirements, procedures, and qualifications as 
                described in paragraph (2)(C).
            ``(2) Prohibition on state discrimination against national 
        banks.--Notwithstanding paragraph (1)--
                    ``(A) Providing insurance as agent or broker.--No 
                State may impose any insurance regulatory requirement 
                relating to providing insurance as an agent or broker 
                that treats a national bank differently than all other 
                persons who are authorized to provide insurance as 
                agents or brokers in such State, unless there is a 
                legitimate and reasonable State regulatory purpose for 
                the requirement for which there is no less restrictive 
                alternative.
                    ``(B) Providing insurance as principal, agent, or 
                broker.--
                            ``(i) No State may impose on a national 
                        bank any insurance regulatory requirement 
                        relating to providing insurance as principal, 
                        agent, or broker that treats the national bank 
                        more restrictively than any other depository 
                        institution (as defined in section 3(c)(1) of 
                        the Federal Deposit Insurance Act, 12 U.S.C. 
                        1813(c)(1)) operating in the State.
                            ``(ii) Nothing in this subparagraph shall 
                        affect the validity of a State law that--
                                    ``(I) prevents a national bank from 
                                engaging in insurance activities within 
                                the State to as great an extent as a 
                                savings association (as defined in 
                                section 3(b)(1) of the Federal Deposit 
                                Insurance Act, 12 U.S.C. 1813(b)(1)) 
                                may engage in such activities within 
                                the State; and
                                    ``(II) was in effect on June 1, 
                                1995.
                    ``(C) Licensing qualifications and procedures.--No 
                State may discriminate against a national bank with 
                respect to the following requirements, procedures, and 
                qualifications as such requirements, procedures, and 
                qualifications relate to the authority of the national 
                bank to provide insurance in such State as an agent or 
                broker:
                            ``(i) License application and processing 
                        procedures.
                            ``(ii) Character, experience, and 
                        educational qualifications for licenses.
                            ``(iii) Testing and examination 
                        requirements for licenses.
                            ``(iv) Fee requirements for licenses.
                            ``(v) Continuing education requirements.
                            ``(vi) Types of licenses required.
                            ``(vii) Standards and requirements for 
                        renewal of licenses.
    ``(b) Authority of the Comptroller of the Currency.--A national 
bank may not provide insurance as a principal, agent, or broker except 
as specifically provided in this section, the paragraph designated as 
the `Seventh' of section 5136(a) of this chapter, section 5136(b) or 
5136B of this chapter, or section 13 of the Federal Reserve Act.
    ``(c) Preservation of Federally Authorized Bank Activities in 
Permissive States.--No provision of this section may be construed as 
affecting the authority, pursuant to section 5136B of this chapter or 
section 13 of the Federal Reserve Act, of a national bank to act as 
insurance agent or broker consistent with State law.
    ``(d) Preservation of National Bank Authority Consistent With State 
Bank Authority.--Except as provided in subsection (a)(2)(B), no 
provision of this section or section 5136(b)(1) shall have the effect 
of enabling a State to deny a national bank authority that the bank 
otherwise possesses to provide a product in a State, including as 
agent, broker, or principal, where the bank is not providing the 
product in the State other than to an extent and in a manner that a 
State bank (as defined in section 3(a)(2) of the Federal Deposit 
Insurance Act, 12 U.S.C. 1813(a)(2)) is permitted by the law of the 
State to provide such product, except that nothing in this subsection 
shall be construed as granting any new authority to a national bank to 
provide any product because the law of the State has authorized State 
banks to provide such product.
    ``(e) Definitions.--For purposes of this section, sections 5136 and 
5136B, and section 13 of the Federal Reserve Act, the following 
definitions shall apply:
            ``(1) Insurance.--The term `insurance' means any product 
        defined or regulated as insurance, consistent with the relevant 
        State insurance law, by the insurance regulatory authority of 
        the State in which such product is sold, solicited, or 
        underwritten, including any annuity contract the income on 
        which is tax deferred under section 72 of the Internal Revenue 
        Code of 1986.
            ``(2) State.--The term `State' has the same meaning as in 
        section 3(a)(3) of the Federal Deposit Insurance Act.
    ``(f) Grandfather Provision.--
            ``(1) In general.--Any national bank which, before January 
        1, 1995, was providing insurance as agent or broker under 
        section 13 of the Federal Reserve Act may provide insurance as 
        an agent or broker under such section, to no less extent and in 
        a no more restrictive manner as such bank was providing 
        insurance as agent or broker under such section on January 1, 
        1995, notwithstanding contrary State law, subject to final, 
        controlling judgment in a pending action.
            ``(2) Termination.--This subsection shall cease to apply 
        with respect to any national bank described in paragraph (1) 
        if--
                    ``(A) the bank is subject to an acquisition, 
                merger, consolidation, or change in control, other than 
                a transaction to which section 18(c)(12) of the Federal 
                Deposit Insurance Act applies; or
                    ``(B) any bank holding company which directly or 
                indirectly controls such bank is subject to an 
                acquisition, merger, consolidation, or change in 
                control, other than a transaction in which the 
                beneficial ownership of such bank holding company or of 
                a bank holding company which controls such company does 
                not change as a result of the transaction.
    ``(g) Preservation of Banking Products.--Nothing in this section 
shall be construed as affecting the ability of a national bank, or a 
subsidiary of a national bank, to engage in any activity, including any 
activity authorized pursuant to the paragraph designated the 
``Seventh'' of section 5136(a), that is part of, and not merely 
incidental to, the business of banking.''.
    (b) Interpretive Authority of the Comptroller of the Currency.--
Section 5136 of the Revised Statutes of the United States (12 U.S.C. 
24) is amended--
            (1) by striking ``Upon duly making and filing articles of 
        association'' and inserting ``(a) In General.--Upon duly making 
        and filing articles of association''; and
            (2) by adding at the end the following new subsection:
    ``(b) Interpretive Authority of the Comptroller of the Currency.--
            ``(1) In general.--Subject to paragraph (2), it shall not 
        be incidental to banking for a national bank to provide 
        insurance as a principal, agent, or broker.
            ``(2) Scope of application.--Notwithstanding paragraph (1), 
        it shall be incidental to banking for a national bank to engage 
        in the following activities:
                    ``(A) Providing, as an agent or broker, any annuity 
                contract the income on which is tax deferred under 
                section 72 of the Internal Revenue Code of 1986.
                    ``(B) Providing, as a principal, agent, or broker, 
                any type of insurance, other than an annuity or title 
                insurance, which the Comptroller of the Currency 
                specifically determined, before May 1, 1995, to be 
                incidental to banking with respect to national 
                banks.''.
    (c) Technical and Conforming Amendments.--
            (1) The 11th undesignated paragraph of section 13 of the 
        Federal Reserve Act (12 U.S.C. 92) is amended by inserting ``, 
        and subject to section 5136A of the Revised Statutes of the 
        United States,'' after ``the laws of the United States''.
            (2) The paragraph designated the ``Seventh'' of section 
        5136 of the Revised Statutes of the United States (12 U.S.C. 
        24) is amended by striking ``subject to law,'' and inserting 
        ``subject to subsection (b), section 5136A, and any other 
        provision of law,''.
            (3) Section 1306 of title 18, United States Code, is 
        amended by striking ``5136A'' and inserting ``5136C''.
    (d) Clerical Amendment.--The table of sections for chapter 1 of 
title LXII of the Revised Statutes of the United States is amended--
            (1) by redesignating the item relating to section 5136A as 
        section 5136C; and
            (2) by inserting after the item relating to section 5136 
        the following new item:

``5136A. State supervision of insurance.''.
    (e) Preservation of Bank Holding Company Insurance Authority.--No 
provision of this section, and no amendment made by this section to any 
other provision of law, may be construed as affecting the authority of 
a bank holding company to engage in insurance agency activity pursuant 
to section 4(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)).

SEC. 241. NATIONAL BANK COMMUNITY DEVELOPMENT INSURANCE ACTIVITIES.

    (a) In General.--Chapter 1 of title LXII of the Revised Statutes of 
the United States (12 U.S.C. 21 et seq.) is amended by inserting after 
section 5136A (as added by section 240(a) of this Act) the following 
new section:

``SEC. 5136B. INSURANCE SALES IN EMPOWERMENT ZONES.

    ``(a) Authority To Sell Insurance as Agent From Empowerment 
Zones.--The Comptroller of the Currency may approve an application by a 
national bank maintaining a main office or full-service branch in an 
empowerment zone to act as an agent or broker from such office or 
branch for any fire, life, or other insurance company authorized to do 
business in the State in which the customer is located if--
            ``(1) the bank provides sufficient evidence that the 
        availability of competitively priced insurance in the 
        empowerment zone is inadequate; and
            ``(2) the insurance is sold only in the empowerment zone.
    ``(b) Application of State Law.--State laws which regulate 
conducting the business of insurance shall apply to national banks and 
their employees that sell insurance as agent or broker under this 
section to the same extent as such laws apply to other entities and 
persons not affiliated with depository institutions except--
            ``(1) in any case in which the Comptroller of the Currency 
        determines, after notice to and comment by the appropriate 
        State insurance officials, that the application of a State law 
        would have an unreasonably discriminatory effect upon the sale 
        of insurance by national banks or their employees in comparison 
        with the effect the application of the State law would have 
        with respect to sale of insurance by other entities; or
            ``(2) when State law by its own terms does not apply to 
        national banks or employees of such banks.
    ``(c) Authority of Comptroller of the Currency.--
            ``(1) In general.--The Comptroller of the Currency may 
        prescribe regulations governing sales of insurance by national 
        banks pursuant to this section.
            ``(2) Enforcement of state law.--The provisions of any 
        State law to which a national bank is subject under this 
        section shall be enforced with respect to such bank by the 
        Comptroller of the Currency.
    ``(d) Definitions.--
            ``(1) Empowerment zone.--The term `empowerment zone' means 
        an area that meets the standards for designation as an 
        empowerment zone or enterprise community under section 1392 of 
        the Internal Revenue Code of 1986 or an Indian reservation.
            ``(2) Full-service branch.--The term `full-service branch' 
        means a staffed facility which has been approved as a branch 
        and offers loan and deposit services.
            ``(3) Indian reservation.--The term `Indian reservation' 
        has the meaning given such term by section 168(j)(6) of the 
        Internal Revenue Code of 1986.''.
    (b) Clerical Amendment.--The table of sections for chapter 1 of 
title LXII of the Revised Statutes of the United States is amended by 
inserting after the item relating to section 5136A (as added by section 
240(d) of this title) the following new item:

``5136B. Insurance sales in empowerment zones.''.

SEC. 242. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE AS LIMITED 
              LIABILITY PARTNERSHIPS.

    (a) Amendment to Short Title.--Section 1 of the Bank Service 
Corporation Act (12 U.S.C. 1861(a)) is amended by striking subsection 
(a) and inserting the following new subsection:
    ``(a) Short Title.--This Act may be cited as the `Bank Service 
Company Act'.'';
    (b) Amendments to Definitions.--Section 1(b) of the Bank Service 
Corporation Act (12 U.S.C. 1861(b)) is amended--
            (1) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) the term `bank service company' means--
                    ``(A) any corporation--
                            ``(i) which is organized to perform 
                        services authorized by this Act; and
                            ``(ii) all of the capital stock of which is 
                        owned by 1 or more insured banks; and
                    ``(B) any limited liability company--
                            ``(i) which is organized to perform 
                        services authorized by this Act; and
                            ``(ii) all of the members of which are 1 or 
                        more insured banks.'';
            (2) in paragraph (6)--
                    (A) by striking ``corporation'' and inserting 
                ``company''; and
                    (B) by striking ``and'' after the semicolon;
            (3) by redesignating paragraph (7) as paragraph (8) and 
        inserting after paragraph (6) the following new paragraph:
            ``(7) the term `limited liability company' means any 
        company organized under the law of a State (as defined in 
        section 3 of the Federal Deposit Insurance Act) which provides 
        that a member or manager of such company is not personally 
        liable for a debt, obligation, or liability of the company 
        solely by reason of being, or acting as, a member or manager of 
        such company; and''; and
            (4) in paragraph (8) (as so redesignated)--
                    (A) by striking ``corporation'' each place such 
                term appears and inserting ``company''; and
                    (B) by striking ``capital stock'' and inserting 
                ``equity''.
    (c) Amendments to Section 2.--Section 2 of the Bank Service 
Corporation Act (12 U.S.C. 1862) is amended--
            (1) by striking ``corporation'' and inserting ``company'';
            (2) by striking ``corporations'' and inserting 
        ``companies''; and
            (3) in the heading for such section, by striking 
        ``corporation'' and inserting ``company''.
    (d) Amendments to Section 3.--Section 3 of the Bank Service 
Corporation Act (12 U.S.C. 1863) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company''; and
            (2) in the heading for such section, by striking 
        ``corporation'' and inserting ``company''.
    (e) Amendments to Section 4.--Section 4 of the Bank Service 
Corporation Act (12 U.S.C. 1864) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company'';
            (2) in subsection (b), by inserting ``or members'' after 
        ``shareholders'' each place such term appears;
            (3) in subsections (c) and (d), by inserting ``or member'' 
        after ``shareholder'' each place such term appears;
            (4) in subsection (e)--
                    (A) by inserting ``or members'' after ``national 
                bank and State bank shareholders'';
                    (B) by striking ``its national bank shareholder or 
                shareholders'' and inserting ``any shareholder or 
                member of the company which is a national bank'';
                    (C) by striking ``its State bank shareholder or 
                shareholders'' and inserting ``any shareholder or 
                member of the company which is a State bank'';
                    (D) by striking ``such State bank or banks'' and 
                inserting ``any such State bank''; and
                    (E) by inserting ``or members'' after ``State bank 
                and national bank shareholders'';
            (5) in subsection (f), by inserting ``or providing 
        insurance as principal, agent, or broker (except to the extent 
        permitted under subparagraph (A) or (E) of section 4(c)(8) of 
        the Bank Holding Company Act of 1956)'' after ``or deposit 
        taking''; and
            (6) in the heading for such section, by striking 
        ``corporation'' and inserting ``company''.
    (f) Amendments to Section 5.--Section 5 of the Bank Service 
Corporation Act (12 U.S.C. 1865) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company''; and
            (2) in the heading for such section, by striking 
        ``corporations'' and inserting ``companies''.
    (g) Amendments to Section 6.--Section 6 of the Bank Service 
Corporation Act (12 U.S.C. 1866) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company'';
            (2) by inserting ``or is not a member of'' after ``does not 
        own stock in'';
            (3) by striking ``the nonstockholding institution'' and 
        inserting ``such depository institution'';
            (4) by inserting ``or is a member of'' after ``that owns 
        stock in'';
            (5) in paragraphs (1) and (2), by inserting ``or 
        nonmember'' after ``nonstockholding''; and
            (6) in the heading for such section by inserting ``or 
        nonmembers'' after ``nonstockholders''.
    (h) Amendments to Section 7.--Section 7 of the Bank Service 
Corporation Act (12 U.S.C. 1867) is amended--
            (1) by striking ``corporation'' each place such term 
        appears and inserting ``company'';
            (2) in subsection (a)--
                    (A) by inserting ``or principal member'' after 
                ``principal shareholder''; and
                    (B) by inserting ``or member'' after ``other 
                shareholder''; and
            (3) in the heading for such section, by striking 
        ``corporations'' and inserting ``companies''.

SEC. 243. BANK INVESTMENTS IN EDGE ACT AND AGREEMENT CORPORATIONS.

    The 10th undesignated paragraph of section 25A of the Federal 
Reserve Act (12 U.S.C. 618) is amended by striking the last sentence 
and inserting the following: ``Any national bank may invest in the 
stock of any corporation organized under this section. The aggregate 
amount of stock held by any national bank in all corporations engaged 
in business of the kind described in this section or section 25 shall 
not exceed an amount equal to 10 percent of the capital and surplus of 
such bank unless the Board determines that the investment of an 
additional amount by the bank would not be unsafe or unsound and, in 
any case, shall not exceed an amount equal to 25 percent of the capital 
and surplus of such bank.''.

SEC. 244. REPORT ON THE RECONCILIATION OF DIFFERENCES BETWEEN 
              REGULATORY ACCOUNTING PRINCIPLES AND GENERALLY ACCEPTED 
              ACCOUNTING PRINCIPLES.

    Before the end of the 180-day period beginning on the date of the 
enactment of this Act, each appropriate Federal banking agency (as 
defined in section 3 of the Federal Deposit Insurance Act) shall submit 
to the Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate a report on the actions taken and to be taken by 
the agency to eliminate or conform inconsistent or duplicative 
accounting and reporting requirements applicable to reports or 
statements filed with any such agency by insured depository 
institutions, as required by section 121 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991.

SEC. 245. WAIVERS AUTHORIZED FOR RESIDENCY REQUIREMENT FOR NATIONAL 
              BANK DIRECTORS.

    The 1st sentence of section 5146 of the Revised Statutes of the 
United States (12 U.S.C. 72) is amended by inserting ``(1) the 
Comptroller of the Currency may, in the Comptroller's discretion, waive 
the residency requirement in the case of any director of a national 
bank to whom the requirement would otherwise apply, and (2)'' after 
``except that''.

                      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) In general.-- Notwithstanding any other provision or 
        rule of Federal law, no lender, acting as defined in this 
        section, shall be liable pursuant to a Federal environmental 
        law, except as provided in this section.
            ``(2) Actual participation required.--A lender shall only 
        be liable pursuant to a 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) Definitions.--The following definitions shall apply 
        for purposes of this section:
                    ``(A) Participate in management.--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) Participate in management.--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) Participate in management.--The term 
                `participate in management' does not include engaging 
                in an act or failing to act before the time that an 
                extension of credit is made or a security interest is 
                created in property.
                    ``(D) Participate in management.--The term 
                `participate in management' does not include, unless 
                such actions rise to the level of participating in 
                management (as defined in subparagraphs (A) and (B))--
                            ``(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, covenants, 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 1 or more 
                        inspections of property, except that monitoring 
                        or undertaking any such inspection, although 
                        not required by this subsection, shall provide 
                        probative evidence that a holder of a security 
                        interest is acting to preserve and protect the 
                        property during the time the holder may have 
                        possession or control of such 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 diminution 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.
                    ``(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, release, 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) Limitation on liability.--The liability of any lender 
        that is liable under any Federal environmental law shall be 
        limited to only the cost of any response action or corrective 
        action to the extent and in the amount that the lender actively 
        and directly contributed to the hazardous substance release. A 
        lender shall not be liable for the cost of any response action 
        or corrective action relating to the release of a hazardous 
        substance which commences before and continues after the lender 
        obtains a security interest in the property so long as the 
        lender does not actively and directly contribute to the 
        hazardous substance release.
    ``(b) Fiduciary Environmental Liability.--
            ``(1) In general.--Notwithstanding any other provision or 
        rule of Federal law, no fiduciary, acting as defined in this 
        section, shall be liable pursuant to any Federal environmental 
        law, except as provided in this section.
            ``(2) Liability of fiduciary.--
                    ``(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 any 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; 
                        or
                            ``(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.
                Nothing in the preceding sentence shall be construed as 
                requiring indemnification by an employee benefit plan 
                (within the meaning of paragraph (3) of section 3 of 
                the Employee Retirement Income Security Act of 1974), 
                or by any trust forming a part thereof, of any 
                fiduciary of such plan contrary to the terms of the 
                plan or in an amount in excess of the amount permitted 
                under the terms of such plan.
                    ``(C) A fiduciary shall not be personally liable 
                for undertaking or directing another to undertake a 
                response action.
            ``(3) Rule of construction.--No provision of this 
        subsection shall be construed as affecting the liability, if 
        any, of any 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), the 
following definitions shall apply:
            ``(1) Federal environmental law.--The term `Federal 
        environmental law' means any Federal statute 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 federally approved or delegated 
        program implementing these laws, including the following:
                    ``(A) The Federal Insecticide, Fungicide, and 
                Rodenticide Act (7 U.S.C. 136 et seq.).
                    ``(B) The Toxic Substances Control Act (15 U.S.C. 
                2601 et seq.).
                    ``(C) The Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.).
                    ``(D) The Oil Pollution Act of 1990 (33 U.S.C. 2701 
                et seq.).
                    ``(E) The Clean Air Act (42 U.S.C. 7401 et seq.).
                    ``(F) The Solid Waste Disposal Act (42 U.S.C. 6901 
                et seq.).
                    ``(G) The Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.).
                    ``(H) The Pollution Prevention Act of 1990 (42 
                U.S.C. 13101 et seq.).
            ``(2) Extension of credit.--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 supervisory (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) Fiduciary.--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(21) 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) Financial or administrative aspect.--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) Foreclosure, foreclose.--The terms `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 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) Hazardous substance.--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) Lender.--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 a 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) Operational aspect.--The term `operational aspect' 
        means a function such as a facility or plant manager, 
        operations manager, chief operating officer, or chief executive 
        officer.
            ``(9) Person.--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) Property.--The term `property' means real, personal, 
        and mixed property.
            ``(11) Response action.--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) Security interest.--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 subsections (a) (b), or (c), 
shall--
            ``(1) affect the rights or immunities or other defenses 
        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 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 paragraph (1)(D) 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) Definitions.--For purposes of subsection (e), the 
        following definitions shall apply:
                    ``(A) Federal banking or lending agency.--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) Hazardous substance.--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) Release.--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 or 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 the enactment of this Act 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 
before such date.

    TITLE IV--ANNUAL STUDY AND REPORT ON IMPACT ON LENDING TO SMALL 
                                BUSINESS

SEC. 401. ANNUAL STUDY AND REPORT.

      Not later than 12 months after the date of the enactment of this 
Act, and annually thereafter, the Board of Governors of the Federal 
Reserve System, the Director of the Office of Thrift Supervision, the 
Comptroller of the Currency, and the Board of Directors of the Federal 
Deposit Insurance Corporation shall jointly conduct a study and submit 
to the Congress a report on the extent to which this Act and the 
amendments made by this Act have, through reductions in regulatory 
burdens, resulted in increased lending to small businesses.