[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2158 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2158

 To streamline the regulatory treatment of financial institutions, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 1995

 Mr. Vento (for himself, Mr. Gonzalez, Mr. Frank of Massachusetts, Mr. 
   Kennedy of Massachusetts, Mr. Mfume, Mrs. Maloney, Mr. Barrett of 
Wisconsin, Mr. Hinchey, and Mr. Bentsen) introduced the following bill; 
 which was referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To streamline the regulatory treatment of financial institutions, and 
                          for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Institutions Streamlined 
Regulatory Treatment Act of 1995''.

         TITLE I--STREAMLINING CONSUMER PROTECTION REQUIREMENTS

SEC. 101. JOINT STUDY AND RECOMMENDATIONS REGARDING LENDING PROCESS 
              WITH RESPECT TO HOME FINANCE.

    (a) Study.--The Board of Governors of the Federal Reserve, the 
Secretary of Housing and Urban Development, and the Secretary of the 
Treasury shall jointly--
            (1) study the lending process as it relates to home 
        finance; and
            (2) develop recommendations for appropriate changes in 
        Federal laws, including the Truth in Lending Act and the Real 
        Estate Settlement Procedures Act, to--
                    (A) improve, harmonize, and simplify disclosures to 
                consumers regarding home finance loans, including the 
                timing of such disclosures;
                    (B) to minimize burdens imposed on financial 
                institutions under those laws; and
                    (C) improve requirements under section 106 of the 
                Truth in Lending Act relating to determination of 
                finance charges, to ensure that finance charges are 
                more reflective of the cost of credit and include costs 
                currently excluded.
    (b) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Board of Governors and the Secretaries shall 
submit a report to the Congress containing the findings and 
recommendations of the study required by this section.

SEC. 102. STUDY AND RECOMMENDATIONS REGARDING EXEMPTION OF TRANSACTIONS 
              FROM TRUTH IN LENDING ACT REQUIREMENTS.

    (a) Study.--The Board of Governors of the Federal Reserve System 
(hereafter in this section referred to as the ``Board'') shall conduct 
a study and develop recommendations regarding classes of transactions, 
if any, which should not be subject to the requirements under the Truth 
in Lending Act because application of those requirements do not provide 
a benefit to consumers in the form of useful information or protection. 
In studying and determining those classes of transactions, the Board 
shall consider, among other factors, loan size, status of the borrower 
(including the sophistication of the borrower relative to the 
complexity of the transaction), and whether the requirements of the 
Truth in Lending Act make the credit extension process more complicated 
or expensive for various classes of transactions.
    (b) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Board shall submit a report to the Congress 
containing the findings and recommendations of the study required by 
this section.

SEC. 103. REDUCTION OF RESPA DISCLOSURE REQUIREMENT BURDEN.

    Section 6(a) of the Real Estate Settlement Procedures Act (12 
U.S.C. 2605), is amended to read as follows:
    ``(a) Disclosure to Applicant Relating to Assignment, Sale, or 
Transfer of Loan Servicing.--
            ``(1) In general.--Each person who makes a federally 
        related mortgage loan shall disclose to each person who applies 
        for any such loan, at the time of application for the loan, 
        whether the servicing of any such loan may be assigned, sold, 
        or transferred to any other person at any time while such loan 
        is outstanding.
            ``(2) Signature of applicant.--Any disclosure of the 
        information required under paragraph (1) shall not be effective 
        for purposes of this section unless the disclosure is 
        accompanied by a written statement, in such form as the 
        Secretary shall develop before the expiration of the 180-day 
        period beginning on the date of enactment, that the applicant 
        has read and understood the disclosure and that is evidenced by 
        the signature of the applicant at the place where such 
        statement appears in the application.''.

SEC. 104. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

    (a) Section 127A(a)(2)(G) of the Truth in Lending Act (15 U.S.C. 
1637a(a)(2)(G)) is amended by inserting before the semicolon the 
following: ``, or a statement of the maximum periodic payment amount 
that may be required under the terms of the plan''.
    (b) Section 128(a) of the Truth in Lending Act (15 U.S.C. 1638(a)) 
is amended by inserting at the end the following new paragraph:
            ``(14) In any variable rate residential mortgage 
        transaction, at the creditors' option--
                    ``(A) an historical example illustrating the 
                effects of interest rate changes implemented according 
                to the loan program; or
                    ``(B) a statement indicating the maximum periodic 
                payment amount that may be required under the terms of 
                the plan.''.
SEC. 105. HOME MORTGAGE DISCLOSURE ACT.

    Section 309 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 
2808) is amended--
            (1) by inserting ``(a) In General.--'' after the section 
        designation;
            (2) in the 2d sentence, by inserting before the period at 
        the end the following: ``, except that the Board shall adjust 
        the maximum dollar amount limitation under this sentence on 
        January 1, 1996, and January 1 of every 5th year thereafter, as 
        provided in subsection (b)''; and
            (3) by adding at the end the following new subsection:
    ``(b) Adjustment of Dollar Amount Limitation.--The adjustment of 
the dollar amount limitation under subsection (a) made for any year 
shall be made by adjusting such limitation as then in effect (as it may 
previously have been adjusted) to reflect the percent change, if any, 
in the Consumer Price Index prepared by the Bureau of Labor Statistics, 
Department of Labor, as reported on June 1 of the year preceding such 
adjustment over such index as reported on June 1 of the year preceding 
the last such adjustment, except that the adjustment made on January 1, 
1996, shall be made by adjusting the dollar amount specified in 
subsection (a) to reflect the percent change in such Consumer Price 
Index as reported on June 1, 1995, over such index as reported on June 
1, 1990.''.

SEC. 106. TRUTH IN SAVINGS ACT AMENDMENTS.

    (a) Exemption From Civil Liability for Certain Advertising 
Violations.--Section 271(a) of the Truth and Savings Act (12 U.S.C. 
271(a)) is amended in the matter preceding paragraph (1) by inserting 
after ``prescribed under this Act'' the following: ``, other than a 
requirement regarding advertisements,''.
    (b) Report on Appropriateness of Annual Percentage Yield Disclosure 
Formula.--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 on the types of accounts, if any, to 
which the application of the annual percentage yield formula under 
section 263 of the Truth in Savings Act is not appropriate. The report 
shall include for each such type of account specified in the report (if 
any) recommendations regarding changes in law that are necessary to 
provide for an appropriate calculation of interest for purposes of 
disclosures under that section.

SEC. 107. ELECTRONIC FUND TRANSFER ACT CLARIFICATION.

    (a) Section 903(1) of the Electronic Fund Transfer Act (15 U.S.C. 
1693a(1)) is amended by inserting before the semicolon the following: 
``, but such term does not include a card, 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, except for those 
transactions where such card, device, or computer is actually used to 
access an account to effect such transaction''.
    (b) Section 903(2) of the Electronic Fund Transfer Act (15 U.S.C. 
1693a(2)) is amended by inserting before the semicolon the following: 
``and does not include any value which is stored on, or assigned to, a 
card, device, or computer that enables a person to pay for transactions 
through use of that stored value''.
SEC. 108. INCENTIVES FOR SELF-TESTING.

    (a) Self-Testing Pursuant to Equal Credit Opportunity Act.--
            (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. ENCOURAGING SELF-TESTING FOR COMPLIANCE.

    ``(a) Except as provided in subsection (b), a creditor that 
conducts self-testing of its lending operations to measure compliance 
with this title shall not be required to disclose the results of the 
self-testing to any department or agency authorized to enforce this 
title.
    ``(b) Nothing in this section shall prevent a department or agency 
from obtaining the results of self-testing by a creditor--
            ``(1) if the creditor conducted the self-testing at the 
        specific request of a department or agency;
            ``(2) if the creditor, or a person acting on its behalf--
                    ``(A) voluntarily releases or discloses all or part 
                of such results to the department or agency or to the 
                general public, or
                    ``(B) seeks to use the results, in the course of a 
                judicial or administrative proceeding or an 
                investigation of a department or agency, as evidence of 
                compliance by the creditor with this title; or
            ``(3) through a discovery request made in the course of a 
        judicial or administrative proceeding that is--
                    ``(A) based on evidence obtained independently of 
                the self-testing, and
                    ``(B) filed after making a reasonable effort to 
                notify the creditor about the nature of the dispute and 
                attempting to achieve a settlement.
    ``(c) For purposes of this section, the term `self-testing' means 
the practice of hiring or otherwise arranging for individuals to pose 
as applicants of the creditor to ascertain how the creditor treats 
applicants.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of that Act is amended by inserting after the item 
        relating to section 704 the following new item:

``704A. Encouraging self-testing for compliance.''.
    (b) Self-Testing Pursuant to Fair Housing Act.--The Fair Housing 
Act (42 U.S.C. 3601 et seq.) is amended by inserting after section 814 
the following new section:

               ``encouraging self-testing for compliance

    ``Sec. 814A. (a) Except as provided in subsection (b), a person 
that conducts self-testing of its residential real estate transactions 
described in section 805(b)(1) to measure compliance with this title 
shall not be required to disclose the results of the self-testing to 
any department or agency authorized to enforce this title.
    ``(b) Nothing in this section shall prevent a department or agency 
from obtaining the results of self-testing by a person or other 
entity--
            ``(1) if the creditor conducted the self-testing at the 
        specific request of a department or agency;
            ``(2) if the creditor, or a person acting on its behalf--
                    ``(A) voluntarily releases or discloses all or part 
                of such results to the department or agency or to the 
                general public, or
                    ``(B) seeks to use the results, in the course of a 
                judicial or administrative proceeding or an 
                investigation of a department of agency, as evidence of 
                compliance by the creditor with this title; or
            ``(3) through a discovery request made in the course of a 
        judicial or administrative proceeding that is--
                    ``(A) based on evidence obtained independently of 
                the self-testing, and
                    ``(B) filed after making a reasonable effort to 
                notify the creditor about the nature of the dispute and 
                attempting to achieve a settlement.
    ``(c) For purposes of this section--
            ``(1) the term `creditor' has the meaning that term has in 
        the Equal Credit Opportunity Act; and
            ``(2) the term `self-testing' means the practice of hiring 
        or otherwise arranging for individuals to pose as applicants of 
        the creditor to ascertain how the creditor treats applicants 
        for credit.''.
SEC. 109. CONSUMER LEASING REQUIREMENTS.

    (a) Adjustment of Dollar Amount in Definition of Consumer Lease.--
Section 181(1) of the Truth in Lending Act (15 U.S.C. 1667(1)) is 
amended--
            (1) by striking ``$25,000'' and inserting ``$50,000''; and
            (2) by adding at the end the following: ``The dollar amount 
        specified in this paragraph shall be adjusted by the Board on 
        January 1 of every fifth year after the year in which this 
        sentence becomes effective to reflect changes in the Consumer 
        Price Index prepared by the Bureau of Labor Statistics, 
        Department of Labor, as such index is reported on June 1 of the 
        year preceding such adjustment, over such index as reported on 
        June 1 of the year preceding the last such adjustment.''.
    (b) Amendments to Consumer Lease Disclosure Requirements.--Section 
182 of the Truth in Lending Act (15 U.S.C. 1667a)) is amended--
            (1) in the 1st sentence by inserting ``(a)'' before ``Each 
        lessor'';
            (2) in subsection (a) (as designated by paragraph (1) of 
        this subsection), in paragraph (10) by striking ``and'' after 
        the semicolon, in paragraph (11) by striking the period and 
        inserting a semicolon, and by adding at the end the following 
        new paragraphs:
            ``(12) Capitalized cost; and
            ``(13) Residual value.''; and
            (3) by adding at the end the following new subsections:
    ``(b)(1) The lessor shall, to the extent applicable, separately 
disclose in a format described by the Board--
            ``(A) the information specified in subsections (a) (2), 
        (3), (4), (9), (12), and (13);
            ``(B) whether or not the lessee has the option to purchase 
        the leased property (pursuant to subsection (a)(5)); and
            ``(C) in the case of such an option that must be exercised 
        at the end of the lease term, the price at which the property 
        may be purchased under the option.
    ``(2) The Board shall prescribe the format for disclosures under 
paragraph (1). The Board shall prescribe a format that minimizes lessee 
confusion about the terms of leases and avoids duplicating disclosures 
under this section.
    ``(c) The Board may, by regulation, require the disclosure of 
information in addition to information otherwise required to be 
disclosed under this section, and may modify any disclosure requirement 
under this subsection, if the Board determines that such regulations 
are necessary to carry out the purposes of, or prevent evasions of, 
this chapter.''.
SEC. 110. 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) 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.''.
    (d) 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.''.
    (e) 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.
    (f) 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 currently excluded 
                        from finance charges under section 106 of the 
                        Truth in Lending 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. 111. 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. 112. 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 one-half of the 
                numerical tolerance corresponding to, and generated by, 
                the tolerance provided by section 107(c) with respect 
                to the annual percentage rate, but in no case may the 
                tolerance under this paragraph be less than $25 nor 
                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 one-half of one 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. 113. 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:

``Sec. 139. Certain limitations on liability.''.
SEC. 114. 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. 115. 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 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 
        nor greater than $2,500''.
SEC. 116. 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, any itemization of the amount 
                financed, or any other disclosure of disbursement, 
                provided in connection with such transaction pursuant 
                to this title; and
                    ``(B) the assignment to the assignee was voluntary.
            ``(2) Violation apparent on the face of the disclosure 
        described.--For the purpose of this section, a violation is 
        apparent on the face of the disclosure statement if--
                    ``(A) the disclosure can be determined to be 
                incomplete or inaccurate from the face of the 
                disclosure statement; or
                    ``(B) the disclosure does not use the terms or 
                format required to be used by this title.''.
    (b) Servicer Not Treated as Assignee.--Section 131 of the Truth in 
Lending Act (15 U.S.C. 1641) is amended by adding at the end the 
following new subsection:
    ``(d) Treatment of Servicer.--
            ``(1) In general.--A servicer of a consumer obligation 
        arising from a consumer credit transaction shall not be treated 
        as an assignee of such obligation for purposes of this section 
        unless the servicer is the owner of the obligation.
            ``(2) Servicer not treated as owner on basis of assignment 
        for administrative convenience.--A servicer of a consumer 
        obligation arising from a consumer credit transaction shall not 
        be treated as the owner of the obligation for purposes of this 
        section on the basis of an assignment of the obligation from 
        the creditor or another assignee to the servicer solely for the 
        administrative convenience of the servicer in servicing the 
        obligation. 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. 117. RESCISSION RIGHTS IN FORECLOSURE.

    Section 125 of the Truth in Lending Act (15 U.S.C. 1635), as 
amended by section 114, is further amended by adding at the end 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.''.

SEC. 118. APPLICABILITY.

    The amendments made by subsections (a), (c), (d), and (e) of 
section 110 and sections 112, 116, and 117 shall apply to all consumer 
credit transactions in existence or consummated after the date of the 
enactment of this Act.

      TITLE II--STREAMLINING MISCELLANEOUS DEPOSITORY INSTITUTION 
                              REQUIREMENTS
SEC. 201. STREAMLINED NONBANKING ACQUISITIONS BY WELL CAPITALIZED AND 
              WELL MANAGED BANKING ORGANIZATIONS.

    (a) Notice Requirements.--Section 4(j) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(j)) is amended as follows--
            (1) in paragraph (1), strike ``No'' and insert in its place 
        ``Except as provided in paragraph (3), no''; and
            (2) add at the end the following new paragraphs:
            ``(3) No notice required for certain transactions.--No 
        notice under paragraph (1) or subsections (c)(8) or (a)(2)(B) 
        is required for a proposal by a bank holding company to engage 
        in any activity or acquire the shares or assets of any company 
        if the proposal qualifies under paragraph (4).
            ``(4) Criteria for statutory approval.--A proposal 
        qualifies under this paragraph if all of the following criteria 
        are met:
                    ``(A) Financial criteria.--Both before and 
                immediately after the proposed transaction--
                            ``(i) the acquiring bank holding company is 
                        well capitalized;
                            ``(ii) the lead insured depository 
                        institution of such holding company is well 
                        capitalized;
                            ``(iii) well capitalized insured depository 
                        institutions control at least 80 percent of the 
                        aggregate total risk-weighted assets of insured 
                        depository institutions controlled by such 
                        holding company; and
                            ``(iv) no insured depository institution 
                        controlled by such holding company is 
                        undercapitalized.
                    ``(B) Managerial criteria.--
                            ``(i) Well managed.--At the time of the 
                        transaction, the acquiring bank holding 
                        company, its lead insured depository 
                        institution, and insured depository 
                        institutions that control at least 90 percent 
                        of the aggregate total risk-weighted assets of 
                        insured depository institutions controlled by 
                        such holding company are well managed.
                            ``(ii) Limitation on poorly managed 
                        institutions.--
                                    ``(I) In general.--No insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                received one of the lowest two 
                                composite ratings at the later of the 
                                institution's most recent examination 
                                or subsequent review.
                                    ``(II) Recently acquired 
                                institutions.--Insured depository 
                                institutions acquired by the bank 
                                holding company within the previous 
                                twelve months may be excluded for 
                                purposes of subclause (I) if--
                                            ``(aa) the bank holding 
                                        company has developed a plan 
                                        acceptable to the appropriate 
                                        Federal banking agency (as 
                                        defined in section 3 of the 
                                        Federal Deposit Insurance Act) 
                                        for the institution to restore 
                                        the capital and management of 
                                        the institution; and
                                            ``(bb) all such insured 
                                        depository institutions 
                                        represent, in the aggregate, 
                                        less than 10 percent of the 
                                        aggregate total risk-weighted 
                                        assets of all insured 
                                        depository institutions 
                                        controlled by the bank holding 
                                        company.
                    ``(C) Activities permissible.--Following 
                consummation of the proposal, the bank holding company 
                engages directly or through a subsidiary solely in:
                            ``(i) activities that are permissible under 
                        subsection (c)(8), as determined by the Board 
                        by regulation or order thereunder, subject to 
                        all of the restrictions, terms and conditions 
                        of such subsection and such regulation or 
                        order; and
                            ``(ii) such other activities as are 
                        otherwise permissible under this section, 
                        subject to the restrictions, terms and 
                        conditions, including any prior notice or 
                        approval requirements, provided in this 
                        section.
                    ``(D) Size of acquisition.--
                            ``(i) Asset size.--The book value of the 
                        total assets acquired does not exceed 10 
                        percent of the consolidated total risk-weighted 
                        assets of the acquiring bank holding company; 
                        and
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.
                    ``(E) Notice not otherwise warranted.--For 
                proposals described in paragraph (5)(B), the Board has 
                not, prior to the conclusion of the period provided in 
                paragraph (5)(B), advised the bank holding company that 
                a notice under paragraph (1) is required.
            ``(5) Notification.--
                    ``(A) Commencement of activities approved by 
                rule.--A bank holding company that qualifies under 
                paragraph (4) and that proposes to engage de novo, 
                directly or through a subsidiary, in any activity that 
                is permissible under subsection (c)(8), as determined 
                by the Board by regulation, may commence that activity 
                without prior notice to the Board and must provide 
                written notification to the Board no later than 10 
                business days after commencing the activity.
                    ``(B) Activities permitted by order and 
                acquisitions.--At least twelve business days prior to 
                commencing any activity pursuant to paragraph (3) other 
                than an activity described in subparagraph (A) or 
                acquiring shares or assets of any company pursuant to 
                paragraph (3), the bank holding company must provide 
                the Board written notification of the proposal, unless 
                the Board determines that no notice or a shorter notice 
                period is appropriate. A notification under this 
                subparagraph must include a description of the proposed 
                activities and the terms of any proposed acquisition.
                    ``(C) Acquisitions of savings associations.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (B), a bank holding 
                        company that qualifies under paragraph (4) and 
                        that proposes to acquire the shares or assets 
                        of a savings association, shall, at least 
                        thirty days prior to the acquisition--
                                    ``(I) provide the Board written 
                                notification of the proposal, and
                                    ``(II) publish notice of the 
                                proposal in a newspaper of general 
                                circulation in the affected communities 
                                for the purpose of soliciting comments 
                                on performance under the Community 
                                Reinvestment Act of 1977.
                            ``(ii) Contents of notice.--Notification to 
                        the Board under this subparagraph must include 
                        a description of the proposed activities and 
                        the terms of any proposed acquisition.
                            ``(iii) Application required.--The Board 
                        shall require an application under paragraph 
                        (1) or subsections (c)(8) or (a)(2)(B) for the 
                        purpose of reviewing the application pursuant 
                        to the Community Reinvestment Act of 1977 if it 
                        receives an adverse public comment during the 
                        notice period that raises relevant issues, as 
                        determined by the Board, under the Community 
                        Reinvestment Act of 1977.''.
    (b) Definitions.--Section 2(o) of the Bank Holding Company Act (12 
U.S.C. 1841) 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.--A company or depository institution is 
        `well managed' if, at its most recent examination or subsequent 
        review, the company or institution received--
                    ``(A) one of the highest two composite ratings; and
                    ``(B) at least a satisfactory rating for 
                management, if such rating is given.''.

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

    (a) Bank Holding Company Act Amendments.--Section 3 of the Bank 
Holding Company Act (12 U.S.C. 1842) is amended by adding at the end 
the following new subsection:
    ``(h) No Approval Required for Certain Transactions.--
Notwithstanding subsection (a)(3) or (a)(5), an acquisition of shares 
by a registered bank holding company, or a merger or consolidation 
between registered bank holding companies, shall be deemed approved at 
the conclusion of the period specified in paragraph (7) if the 
following conditions are met:
            ``(1) Financial and managerial criteria.--
                    ``(A) Well capitalized bank holding company.--Both 
                at the time of and immediately after the proposed 
                transaction, the acquiring bank holding company is well 
                capitalized.
                    ``(B) Well capitalized lead insured depository 
                institution.--Both at the time of and immediately after 
                the proposed transaction, the lead insured depository 
                institution of the acquiring bank holding company is 
                well capitalized.
                    ``(C) Capital of other insured depository 
                institutions.--At the time of the transaction, well 
                capitalized insured depository institutions control at 
                least 80 percent of the aggregate total risk-weighted 
                assets of insured depository institutions controlled by 
                the acquiring bank holding company.
                    ``(D) No undercapitalized insured depository 
                institutions.--At the time of the transaction, no 
                insured depository institution controlled by the 
                acquiring bank holding company is undercapitalized.
                    ``(E) Well managed.--
                            ``(i) In general.--At the time of the 
                        transaction, the acquiring bank holding 
                        company, its lead insured depository 
                        institution, and insured depository 
                        institutions that control at least 90 percent 
                        of the aggregate total risk-weighted assets of 
                        insured depository institutions controlled by 
                        such holding company are well managed.
                            ``(ii) No poorly managed institutions.--
                                    ``(I) In general.--No insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                received one of the lowest two 
                                composite ratings at the later of the 
                                institution's most recent examination 
                                or subsequent review.
                                    ``(II) Recently acquired 
                                institutions.--Insured depository 
                                institutions acquired by the bank 
                                holding company within the previous 
                                twelve months may be excluded for 
                                purposes of subclause (I) if--
                                            ``(aa) the bank holding 
                                        company has developed a plan 
                                        acceptable to the appropriate 
                                        Federal banking agency (as 
                                        defined in section 3 of the 
                                        Federal Deposit Insurance Act) 
                                        for the institution to restore 
                                        the capital and management of 
                                        the institution; and
                                            ``(bb) all such insured 
                                        depository institutions 
                                        represent, in the aggregate, 
                                        less than 10 percent of the 
                                        aggregate total risk-weighted 
                                        assets of all insured 
                                        depository institutions 
                                        controlled by the holding 
                                        company.
            ``(2) No unsatisfactory cra ratings.--
                    ``(A) In general.--No insured depository 
                institution controlled by the acquiring bank holding 
                company has received a `needs to improve' or 
                `substantial noncompliance' composite rating at its 
                most recent examination under the Community 
                Reinvestment Act of 1977.
                    ``(B) Recently acquired institutions.--Insured 
                depository institutions acquired by such bank holding 
                company within the previous twelve months may be 
                excluded for purposes of subparagraph (A) if the bank 
                holding company has developed a plan acceptable to the 
                appropriate Federal banking agency (as defined in 
                section 3 of the Federal Deposit Insurance Act) to 
                restore the performance of the institution to at least 
                a `satisfactory' rating under the Community 
                Reinvestment Act of 1977.
            ``(3) Competitive criteria.--Consummation of the proposal 
        complies with guidelines established by the Board by 
        regulation, after consultation with the Attorney General, that 
        identify proposals that are not likely to have a significantly 
        adverse effect on competition in any relevant market.
            ``(4) Size of acquisition.--
                    ``(A) Limitation on asset size.--The book value of 
                the total assets acquired does not exceed 10 percent of 
                the consolidated total risk weighted assets of the 
                acquiring bank holding company.
                    ``(B) Adjustment to limitations.--The Board may by 
                regulation adjust the limitations established in this 
                paragraph in a manner consistent with safety and 
                soundness and the purposes of this Act.
            ``(5) Interstate acquisitions.--Board approval of the 
        transaction is not prohibited under subsection (d).
            ``(6) Other considerations.--Board approval of the 
        transaction is not prohibited under subsection (c)(3).
            ``(7) Notification.--
                    ``(A) In general.--The acquiring bank holding 
                company publishes notice of the application in a 
                newspaper of general circulation in the affected 
                communities and provides the Board and the Attorney 
                General with written
                 notice of the transaction, including a description of 
the terms of the transaction, at least 30 business days before 
consummation of the transaction, and, prior to the conclusion of that 
period, the Board has not required an application under subsection (a) 
and the Attorney General has not objected to the transaction.
                    ``(B) Application required.--The Board shall have 
                the discretion to require an application under 
                subsection (a) as the Board deems appropriate, except 
                that the Board shall require an application under 
                subsection (a) for the purpose of reviewing the 
                application pursuant to the Community Reinvestment Act 
                of 1977 if the Board receives an adverse public comment 
                during the notice period that raises relevant issues, 
                as determined by the Board, under the Community 
                Reinvestment Act of 1977.''

SEC. 203. STREAMLINING BANK MERGERS.

    Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)) is amended--
            (1) in paragraph (4), by striking all that follows after 
        ``report on the competitive factors involved from the Attorney 
        General and'' and inserting the following: ``give notice to the 
        other agencies that are referred to in paragraph (2) that such 
        a report has been requested. The responsible agency shall not 
        be required to request a report or give notice with respect to: 
        (A) a merger with an interim institution organized solely to 
        facilitate a corporate reorganization that does not result in a 
        change in control of an institution; or (B) a merger 
        transaction involving only insured depository institutions that 
        are subsidiaries of the same depository institution holding 
        company. The Attorney General shall furnish the report within 
        30 calendar days of the date on which it is requested, or 
        within 10 calendar days if the responsible agency advises the 
        Attorney General that an emergency exists requiring expeditious 
        action. If the Attorney General determines that a proposed 
        transaction raises a significant competitive issue, the 
        Attorney General shall provide all agencies defined in 
        paragraph (2) with a copy of the report. Nothing in this 
        subsection shall prohibit an agency that has received notice 
        that a report has been requested from the Attorney General from 
        also furnishing a report to the responsible agency within the 
        same time period as provided for the Attorney General.''; and
            (2) by striking paragraph (6) and inserting the following 
        new paragraph:
            ``(6) The responsible agency shall immediately notify the 
        Attorney General of any approval by it pursuant to this 
        subsection of a proposed merger transaction, provided that such 
        notification shall not be required with respect to a merger 
        involving an interim or affiliated institution as described in 
        subparagraph (A) or (B) of paragraph (4). If a report on the 
        competitive factors is not necessary pursuant to any such 
        subparagraph, or if the agency has found that it must act 
        immediately in order to prevent the probable failure of one of 
        the banks or savings associations involved and the report has 
        been dispensed with, the transaction may be consummated 
        immediately upon approval by the agency. If the agency has 
        advised the Attorney General of the existence of an emergency 
        requiring expeditious action and has requested a report on the 
        competitive factors within 10 days and given notice to the 
        other agencies that a report was requested, the transaction may 
        be consummated after the 5th calendar day after the date of 
        approval by the agency. In all other cases, the transaction may 
        not be consummated before the 30th calendar day after the date 
        of approval by the agency, or such shorter period of time as 
        may be prescribed by the agency with the concurrence of the 
        Attorney General, but in no event less than 15 calendar days 
        after the date of approval.''.

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

    Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1815(d)(3)) is amended--
            (1) in subparagraph (A), by striking ``with the prior 
        written approval of the responsible agency under section 
        18(c)(2)'' and inserting ``if the transaction is approved under 
        section 18(c)(2) by the responsible agency (as defined in 
        paragraph (2) of such section)'';
            (2) in subparagraph (E)--
                    (A) by striking clause (iv) and inserting the 
                following new clause:
                            ``(iv) A transaction described in this 
                        paragraph shall not be approved unless the 
                        acquiring, assuming, or resulting depository 
                        institution will meet all applicable capital 
                        requirements upon consummation of the 
                        transaction.'';
                    (B) by striking clause (ii); and
                    (C) by redesignating clauses (iii) and (iv) as 
                clauses (ii) and (iii), respectively; and
            (3) by striking subparagraph (G) and redesignating the 
        subsequent subparagraphs accordingly.
SEC. 205. REGULATION OF HOLDING COMPANIES CONTROLLING BANKS AND SAVINGS 
              ASSOCIATIONS.

    (a) Home Owners' Loan Act.--Section 10 of the Home Owners' Loan Act 
(12 U.S.C. 1467a) is amended by adding the following new subsection:
    ``(t) Coordinated and Unified Requirements for Dual Holding 
Companies.--Not later than 1 year after the date of the enactment of 
the Financial Institutions Regulatory Relief Act of 1995, the Director 
and the Board of Governors of the Federal Reserve System shall jointly 
issue regulations for coordinating and unifying requirements that are 
imposed on companies that are subject both to this section and the Bank 
Holding Company Act of 1956, consistent with the requirements of 
existing law, including a system for the coordination of examinations 
and oversight of companies that are subject to both Acts and a unified 
application requirement that applies to bank holding company 
acquisitions of savings associations.''.
    (b) Bank Holding Company Act of 1956.--Section 3 of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1842) is amended by adding at 
the end the following new subsection:
    ``(h) Coordinated and Unified Requirements for Dual Holding 
Companies.--Not later than 1 year after the date of the enactment of 
the Financial Institutions Regulatory Relief Act of 1995, the Board and 
the Director of the Office of Thrift Supervision shall jointly issue 
regulations for coordinating and unifying requirements that are imposed 
on companies that are subject both to this Act and section 10 of the 
Home Owners' Loan Act, consistent with the requirements of existing 
law, including a system for the coordination of examinations and 
oversight of companies that are subject to both Acts and a unified 
application requirement that applies to bank holding company 
acquisitions of savings associations.''.

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

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

SEC. 207. ELIMINATE UNNECESSARY BRANCH APPLICATIONS.

    (a) National Bank Branch Applications.--Section 5155(i) of the 
Revised Statutes (12 U.S.C. 36(i)) is amended--
            (1) by striking ``No branch'' and inserting the following:
            ``(1) Approval required.--Except as provided in paragraph 
        (2), no branch''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) No approval required for certain branches.--
        Notwithstanding this subsection or subsection (b) or (c) and 
        subject to paragraph (3), the consent and approval of the 
        Comptroller of the Currency shall not be required for a 
        national banking association to establish and operate, or to 
        retain and operate, a branch or seasonal agency if--
                    ``(A) the association is well capitalized, as that 
                term is defined in section 38 of the Federal Deposit 
                Insurance Act and regulations prescribed by the 
                Comptroller of the Currency under such section;
                    ``(B) the association received a composite CAMEL 
                rating of `1' or `2' under the Uniform Financial 
                Institutions Rating System (or an equivalent rating 
                under a comparable rating system) as of its most recent 
                examination;
                    ``(C) the association did not receive a `needs to 
                improve' or substantial noncompliance composite rating 
                at its most recent examination under the Community 
                Reinvestment Act of 1977;
                    ``(D) the association publishes a notice of the 
                proposed branch in a newspaper of general circulation 
                in the affected community, in accordance with the 
                Comptroller of the Currency's rules governing the 
                establishment of branches, which shall invite 
                interested parties to submit comments to the 
                Comptroller on the performance of the association under 
                the Community Reinvestment Act of 1977; and
                    ``(E) the Comptroller of the Currency may grant 
                approval under this section to such association to 
                establish and operate, or to retain and operate, a 
                branch or seasonal agency at the proposed location and 
                the Comptroller does not determine, prior to the 
                expiration of the comment period provided in 
                subparagraph (D), that the association is not meeting 
                the credit needs of its entire community consistent 
                with the safe and sound operation of such institution.
            ``(3) Exception.--Paragraph (2) shall not apply if the 
        Comptroller receives an adverse public comment during the 
        notice period provided in (2)(D) that raises relevant issues, 
        as determined by the Comptroller, under the Community 
        Reinvestment Act of 1977.
            ``(4) A branch or seasonal agency established by a national 
        banking association under paragraph (2) shall be deemed to have 
        been established and operated pursuant to an application 
        approved under this section.''.
    (b) State Member Bank Branch Applications.--The 3d undesignated 
paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is 
amended by adding at the end the following: ``Notwithstanding the 
previous two sentences, the approval of the Board shall not be required 
for a State member bank to establish and operate a branch or seasonal 
agency if--
                    ``(A) the State member bank is well capitalized, as 
                that term is defined in section 38 of the Federal 
                Deposit Insurance Act and regulations prescribed by the 
                Board under such section;
                    ``(B) the State member bank received a composite 
                CAMEL rating of `1' or `2' under the Uniform Financial 
                Institutions Rating System (or an equivalent rating 
                under a comparable rating system);
                    ``(C) the State member bank did not receive a 
                `needs to improve' or substantial noncompliance 
                composite rating at its most recent examination under 
                the Community Reinvestment Act of 1977;
                    ``(D) the State member bank publishes a notice of 
                the proposed branch in a newspaper of general 
                circulation in the affected community, in accordance 
                with the Board's rules governing the establishment of 
                branches, which shall invite interested parties to 
                submit comments to the Board on the performance of the 
                State member bank under the Community Reinvestment Act 
                of 1977; and
                    ``(E) the Board is authorized to grant approval 
                under this section to such State member bank to 
                establish and operate a branch or seasonal agency at 
                the proposed location and the Board does not determine, 
                before the expiration of the comment period provided in 
                subparagraph (D), that the State member bank is not 
                meeting the credit needs of its entire community 
                consistent with its the safe and sound operation.
        The preceding sentence shall not apply if the Board receives an 
        adverse public comment during the notice period referred to in 
        subparagraph (D) that raises relevant substantive issues, as 
        determined by the Board, under the Community Reinvestment Act 
        of 1977. A branch or seasonal agency established by a State 
        member bank under the 2d preceding sentence shall be deemed to 
        have been established and operated pursuant to an application 
        approved under this section.''.
    (c) State Nonmember Bank Branch Applications.--Section 18(d) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by adding 
at the end the following new paragraphs:
            ``(5) Application exemption for certain banks.--
        Notwithstanding paragraph (1), the consent of the Corporation 
        shall not be required for a State nonmember insured bank to 
        establish and operate any domestic branch if--
                    ``(A) the bank is well capitalized, as that term is 
                defined in section 38 and regulations prescribed by the 
                Corporation under such section;
                    ``(B) the bank received a composite CAMEL rating of 
                `1' or `2' under the Uniform Financial Institutions 
                Rating System (or an equivalent rating under a 
                comparable rating system) as of its most recent 
                examination;
                    ``(C) the bank did not receive a `needs to improve' 
                or substantial noncompliance composite rating at its 
                most recent examination under the Community 
                Reinvestment Act of 1977;
                    ``(D) the bank publishes a notice of the proposed 
                branch in a newspaper of general circulation in the 
                affected community, in accordance with the 
                Corporation's rules governing the establishment of 
                branches, which shall invite interested parties to 
                submit comments to the Corporation on the performance 
                of the bank under the Community Reinvestment Act of 
                1977; and
                    ``(E) the Corporation is authorized to give consent 
                under this section to such bank to establish and 
                operate a domestic branch at the proposed location and 
                the Corporation does not determine, prior to the 
                expiration of the comment period provided in 
                subparagraph (D), that the bank is not meeting the 
                credit needs of its entire community consistent with 
                the safe and sound operation of such institution.
            ``(6) Exception.--Paragraph (5) shall not apply if the 
        Corporation receives an adverse public comment during the 
        notice period provided in (5)(D) that raises relevant issues, 
        as determined by the Corporation, under the Community 
        Reinvestment Act of 1977.
            ``(7) 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 by adding at the 
end the following: ``The term `branch' does not include automated 
teller machines or remote service units.''.
    (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 by striking ``lent; and the'' and inserting ``lent. The term 
`domestic branch' does not include automated teller machines or remote 
service units. The''.

SEC. 209. AGENCY WAIVER AUTHORITY FOR OFFICER AND DIRECTOR FILINGS.

    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 on case by case basis.--An appropriate Federal 
        banking agency may waive the requirement of this subsection 
        with respect to information described in paragraph (1) on a 
        case-by-case basis.''.
SEC. 210. ELIMINATE THE PER-BRANCH CAPITAL REQUIREMENT FOR NATIONAL 
              BANKS AND STATE MEMBER BANKS.

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

SEC. 211. EXPANDED REGULATORY DISCRETION FOR SMALL BANK EXAMINATIONS.

    Section 10(d)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)(8)) is amended by striking ``$175,000,000'' and inserting 
``$250,000,000''.

SEC. 212. 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. 213. REQUIRED REGULATORY REVIEW OF REGULATIONS.

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

SEC. 214. FOREIGN BANK APPLICATIONS.

    (a) In General.--Section 7(d) of the International Banking Act of 
1978 (12 U.S.C. 3105(d)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following new paragraphs:
            ``(1) Prior review required.--
                    ``(A) In general.--After the appropriate State Bank 
                supervisor or the Comptroller of the Currency has 
                approved an application of a foreign bank to establish 
                a branch or an agency, or acquire ownership or control 
                of a commercial lending company, the application shall 
                be reviewed by the Board for a period of not more than 
                60 days.
                    ``(B) Referral to the board.--Upon receiving an 
                application of a foreign bank to establish a State 
                branch or State agency or commercial lending company, 
                the appropriate State bank supervisor shall forward a 
                copy of the application to the Board for review.
                    ``(C) Required standards for approval.--Except as 
                provided by subparagraphs (D) and (E), the Board may 
                not approve or recommend approval of an application of 
                a foreign bank unless it determines that--
                            ``(i) the foreign bank engages directly in 
                        the business of banking outside the United 
                        States and is subject to comprehensive 
                        supervision or regulation on a consolidated 
                        basis by the appropriate authorities in its 
                        home country; and
                            ``(ii) the foreign bank has furnished to 
                        the Board the information it needs to 
                        adequately assess the application.
                    ``(D) Limited exception for foreign banks not 
                subject to comprehensive supervision.--The Board, in 
                its discretion, may approve or recommend approval of an 
                application of a foreign bank that the Board determines 
                is not subject to comprehensive supervision or 
                regulation on a consolidated basis if--
                            ``(i) the foreign bank engages directly in 
                        the business of banking outside the United 
                        States and has, as of the date of the 
                        application, established and operated a branch, 
                        agency, or commercial lending company in the 
                        United States that is not the subject of an 
                        ongoing enforcement action by any State or 
                        Federal bank regulatory agency;
                            ``(ii) the Board determines that the 
                        foreign bank will make adequate financial 
                        resources available to support the proposed 
                        operation of the applicant; and
                            ``(iii) the Board determines that the 
                        foreign bank is subject to substantial 
                        supervision or regulation on a consolidated 
                        basis by the appropriate authorities in its 
                        home country, and continues to make 
                        demonstrable progress toward establishing 
                        arrangements for comprehensive supervision or 
                        regulation of its banks on a consolidated 
                        basis.
                    ``(E) Exemption.--The Board, in its discretion, may 
                approve or recommend approval of an application without 
                applying the criteria in subparagraph (C)(i) which 
                requires the Board to determine that the foreign bank 
                application is subject to comprehensive supervision or 
                regulation on a consolidated basis if--
                            ``(i) the Board has previously approved or 
                        recommended approval of an application of a 
                        foreign bank that is from the same country and 
                        is of the same class of banking entities as the 
                        current applicant; and
                            ``(ii) at the time it approved or 
                        recommended approval of the previous 
                        application, the Board made the determination 
                        required in subparagraph (C)(i).
            ``(2) Authority of the board.--
                    ``(A) Decision on application.--Based on its review 
                of an application submitted to it pursuant to paragraph 
                (1)(A), the Board may--
                            ``(i) with respect to an application 
                        submitted to it for review by the appropriate 
                        State bank supervisor, confirm the approval of 
                        or deny the application; or
                            ``(ii) with respect to an application 
                        submitted to it for review by the Comptroller 
                        of the Currency, recommend to the Comptroller 
                        that the approval be confirmed or denied.
                    ``(B) Extension of review period.--The Board is 
                authorized to extend the review period provided in 
                paragraph (1)(A) for an additional 60 days after 
                providing notice of and the reasons for the extension 
                to the applicant and any appropriate State bank 
                supervisor or the Comptroller of the Currency.
                    ``(C) Reasons for disapproval.--If the Board denies 
                an application or recommends that an application be 
                denied, the Board shall provide an explanation of its 
                reasons to the appropriate State bank supervisor or the 
                Comptroller of the Currency, as appropriate.''.
    (b) Regulatory Simplification.--Section 4 of the International 
Banking Act of 1978 (12 U.S.C. 3102) is amended--
            (1) in subsection (a)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) Review by the board.--Upon receipt of an application 
        for approval under this subsection, the Comptroller shall 
        forward the application to the Board for its review in 
        accordance with section 7(d).''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Board recommendations required to be considered.--In 
        considering an application for approval under this subsection, 
        the Comptroller of
         the Currency shall consider any recommendation made by the 
Board under section 7(d).'';
            (2) in subsection (c)--
                    (A) by striking ``(c) In acting on any 
                application'' and inserting ``(c) Additional Factors.--
            ``(1) In general.--In acting on any application''; and
                    (B) by adding at the end the following new 
                paragraph:
                            ``(2) Additional criteria.--In acting on 
                        any application to establish a Federal branch 
                        or agency, the Comptroller also shall apply the 
                        standards that the Board applies under section 
                        7(d).'; and
            (3) by striking subsection (d) and inserting the following 
        new subsection:
    ``(d) Federal Agencies.--
            ``(1) In general.--Notwithstanding any other provisions of 
        this section, a foreign bank shall not receive deposits from 
        citizens or residents of the United States or exercise 
        fiduciary powers at any Federal agency.
            ``(2) Exception.--A foreign bank may maintain at a Federal 
        agency for the account of others credit balances incidental to, 
        or arising out of, the exercise of its lawful powers.''.
    (c) Conforming Amendment.--Section 7(d)(5) of the International 
Banking Act of 1978 (12 U.S.C. 3105(d)) is amended to read as follows:
            ``(5) Establishment or recommendation of conditions.--
        Consistent with the standards in this section for the approval 
        or recommendations of the Board, the Board may--
                    ``(A) with respect to an application submitted to 
                the Board for review by the appropriate State bank 
                supervisor, impose any conditions on its approval that 
                the Board considers to be necessary; and
                    ``(B) with respect to an application submitted to 
                the Board for review by the Comptroller of the 
                Currency, recommend to the Comptroller that any 
                condition considered to be necessary by the Board be 
                imposed as a condition of the Comptroller's 
                approval.''.

SEC. 215. DUPLICATE EXAMINATION OF FOREIGN BANKS.

    Section 7(c)(1) of the International Banking Act of 1978 (12 U.S.C. 
3105(b)(1)) is amended by striking subparagraphs (B) and (C) and 
inserting the following new subparagraphs:
                    ``(B) Reliance on primary supervisor.--In order to 
                avoid unnecessary duplication and cost, the Board 
                shall, to the extent practicable, rely upon the reports 
                of examinations made by the Comptroller, the Federal 
                Deposit Insurance Corporation, or the appropriate State 
                bank supervisor in achieving the purposes of this 
                subsection.''
                    ``(C) On-site examination.--Each branch or agency 
                of a foreign bank shall be subject to on-site 
                examination on the same schedule that a comparable 
                national or State nonmember bank would be examined by 
                the Comptroller of the Currency or the Federal Deposit 
                Insurance Corporation.''.

SEC. 216. AMENDMENTS TO THE DEPOSITORY INSTITUTIONS MANAGEMENT 
              INTERLOCKS ACT.
    (a) Dual Service of Outside Counsel and Accountants on Board of 
Directors Prohibited.--The Depository Institution Management Interlocks 
Act (12 U.S.C. 3201 et seq.) is amended by adding at the end the 
following new section:
``SEC. 211. DUAL SERVICE OF OUTSIDE COUNSEL AND ACCOUNTANTS ON BOARD OF 
              DIRECTORS PROHIBITED.

    ``(a) In General.--No individual who is an outside counsel or 
outside accountant of a depository institution or a depository holding 
company may serve as a member of board of directors of that depository 
institution or depository holding company or of any affiliate of any 
such institution or company.
    ``(b) Exception for Small Institutions.--This section shall not 
apply with respect to any depository institution the total assets of 
which do not exceed $250,000,000.''.
    (b) Ownership Disclosures to Board of Directors.--The Depository 
Institution Management Interlocks Act (12 U.S.C. 3201 et seq.) is 
amended by inserting after section 211 (as added by subsection (a) of 
this section) the following new section:

``SEC. 212. OWNERSHIP DISCLOSURES TO BOARD OF DIRECTORS.

    ``Not less than once each calendar year, each depository 
institution and depository holding company shall provide to each member 
of its board of directors, and to each member of the board of directors 
of any depository institution or depository holding company it 
controls, a list of the names and principal places of business of each 
individual or company which directly or indirectly owns, controls, or 
has power to vote 5 percent or more of any class of voting securities 
of the depository institution or depository holding company, and such 
other information as the appropriate Federal depository institutions 
regulatory agency shall prescribe by regulation.''.
    (c) Board of Directors Control by Outside Directors.--The 
Depository Institution Management Interlocks Act (12 U.S.C. 3201 et 
seq.) is amended by inserting after section 212 (as added by subsection 
(b) of this section) the following new section:

``SEC. 213. BOARD OF DIRECTORS CONTROL BY OUTSIDE DIRECTORS.

    ``A majority of the voting members of the board of directors of 
each depository institution and each depository holding company shall 
be outside directors.''.
    (d) Definitions.--Section 202 of the Depository Institution 
Management Interlocks Act (12 U.S.C. 3201) is amended--
            (1) in paragraph (5), by striking ``and'';
            (2) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following new paragraphs:
            ``(7) the term `outside counsel' means any individual who 
        is not a full time employee of the depository institution or 
        depository holding company and who receives compensation, 
        either directly or through a law firm, partnership, or 
        corporation, for legal services or advice rendered to the 
        depository institution or depository holding company or any of 
        its subsidiaries, affiliates, or holding companies;
            ``(8) the term `outside accountant' means any individual 
        who is not a full time employee of the depository institution 
        or depository holding company and who receives compensation, 
        either directly or through an accounting firm, partnership, or 
        corporation, for accounting services or advice rendered to the 
        depository institution or any of its subsidiaries, affiliates, 
        or holding companies;
            ``(9) the term `outside director' means an individual who 
        is a member of the board of directors who is not an employee or 
        officer with management functions of either the depository 
        institution or depository holding company, or any of its 
        subsidiaries, affiliates, or holding companies; and
            ``(10) the term `control' has the meaning given to such 
        term in section 2 of the Bank Holding Company Act of 1956, for 
        bank holding companies and section 10(a)(2) of the Home Owners' 
        Loan Act for savings and loan holding companies.''.

SEC. 217. ELECTRONIC FUND TRANSFER FEE DISCLOSURES AT ELECTRONIC 
              TERMINALS.

    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) 
is amended--
            (1) by striking ``(d) In the event'' and inserting ``(d) 
        Applicability to Service Providers Other Than Certain Financial 
        Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) Fee disclosures at electronic terminals.--The 
        regulations prescribed under paragraph (1) shall require any 
        person who operates an electronic terminal at which electronic 
        fund transfer services are made available to any consumer to 
        provide notice to the consumer (at the time the service is 
        provided at any such terminal) of the amount of any fee imposed 
        by such person for providing the service.''.
SEC. 218. 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. 219. 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.

                      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) the term `participate in management' means 
                actually participating in the management or operational 
                affairs of other persons' activities, and does not 
                include merely having the capacity to influence, or the 
                unexercised right to control such activities;
                    ``(B) a person shall be considered to `participate 
                in management' while a borrower is still in possession 
                of property, only if such person--
                            ``(i) exercises decision-making control 
                        over the environmental compliance of a 
                        borrower, such that the person has undertaken 
                        responsibility for the hazardous substance 
                        handling or disposal practices of the borrower; 
                        or
                            ``(ii) exercises control at a level 
                        comparable to that of a manager of the 
                        enterprise of the borrower, such that the 
                        person has assumed or manifested responsibility 
                        for the overall management of the enterprise 
                        encompassing day-to-day decisionmaking with 
                        respect to environmental compliance, or with 
                        respect to substantially all of the operational 
                        aspects (as distinguished from financial or 
                        administrative aspects) of the enterprise, 
                        other than environmental compliance;
                    ``(C) the term `participate in management' does not 
                include engaging in an act or failing to act before the 
                time that an extension of credit is made or a security 
                interest is created in property; and
                    ``(D) the term `participate in management' does not 
                include, 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, releases, 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--
                            ``(i) 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; and
                            ``(ii) such person preserves the property 
                        until such sale, release, or divestiture.
            ``(4) A lender shall be liable for the cost of any response 
        action or corrective action only to the extent that the action 
        required is directly attributable to the lender's activities. 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's involvement.
            ``(5) No provision of this subsection shall be construed as 
        exempting from liability any lender whose intentional act or 
        omission causes the release of a hazardous substance, 
        pollutant, or contaminant, or the violation of any 
        environmental law. The liability of any lender that is liable 
        under any federal environmental law shall be limited to the 
        unpaid balance of any outstanding extension of credit related 
        to the property or activities forming the basis for the 
        liability.
    ``(b) Fiduciary Environmental Liability.--
            ``(1) 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.
                    ``(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):
            ``(1) 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) 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) 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) The term `financial or administrative aspect' means a 
        function such as a credit manager, accounts payable officer, 
        accounts receivable officer, personnel manager, comptroller, or 
        chief financial officer, or any similar function.
            ``(5) The 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) The term `hazardous substance' means any chemical, 
        biological, organic, inorganic, or radioactive pollutants, 
        contaminants, materials, waste or other substances regulated 
        under, defined, listed or included in any Federal environmental 
        law.
            ``(7) The term `lender' means--
                    ``(A) a person that makes a bona fide extension of 
                credit to or takes a security interest from another 
                person and includes a successor or assign of the person 
                which makes the extension of credit or takes the 
                security interest;
                    ``(B) the Federal National Mortgage Association, 
                the Federal Home Loan Mortgage Corporation, the Federal 
                Agricultural Mortgage Corporation, or other entity that 
                in a bona fide manner is engaged in the business of 
                buying or selling loans on interests therein;
                    ``(C) any person engaged in the business of 
                insuring or guaranteeing against 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) The term `operational aspect' means a function such 
        as a facility or plant manager, operations manager, chief 
        operating officer, or chief executive officer.
            ``(9) The term `person' means an individual, firm, 
        corporation, association, partnership, consortium, joint 
        venture, commercial entity, United States Government, State, 
        municipality, commission, political subdivision of a State, or 
        any interstate body.
            ``(10) The term `property' means real, personal and mixed 
        property.
            ``(11) The term `response action' shall have the same 
        meaning as that term is defined in section 101 of the 
        Comprehensive Environmental Response, Compensation and 
        Liability Act.
            ``(12) The term `security interest' means a right under a 
        mortgage, deed of trust, assignment, judgment lien, pledge, 
        security agreement, factoring agreement, or lease, or any other 
        right accruing to a person to secure the repayment of money, 
        the performance of a duty, or some other obligation.
    ``(d) Savings Clause.--Nothing in 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) The term `Federal banking or lending agency' 
                means the Corporation, the Resolution Trust 
                Corporation, the Board of Governors of the Federal 
                Reserve System, the Comptroller of the Currency, the 
                Office of Thrift Supervision, a Federal Reserve Bank, a 
                Federal Home Loan Bank, the Department of Housing and 
                Urban Development, the National Credit Union 
                Administration Board, the Farm Credit Administration, 
                the Farm Credit System Insurance Corporation, the Farm 
                Credit System Assistance Board, the Farmers Home 
                Administration, the Rural Electrification 
                Administration, the Small Business Administration, and 
                any other Federal agency acting in a similar capacity, 
                in any of their capacities, and their agents or 
                appointees.
                    ``(B) The term `hazardous substance' has the same 
                meaning as in section 101(14) of the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980.
                    ``(C) The term `release' has the same meaning as in 
                section 101(22) of the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 1980, and 
                includes the use, storage, disposal, treatment, 
                generation, or transportation of a hazardous substance.
            ``(5) Savings clause.--Nothing in subsection (e) shall--
                    ``(A) affect the rights 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 enactment and shall apply to any claim against any lender, fiduciary 
or government agency under any Federal environmental law that has not 
been finally resolved by adjudication or settlement prior to enactment.
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