[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4079 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 4079

 To reduce paperwork and additional regulatory burdens for depository 
                             institutions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 16, 1996

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

_______________________________________________________________________

                                 A BILL


 
 To reduce paperwork and additional regulatory burdens for depository 
                             institutions.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Financial 
Institutions Regulatory Relief Act of 1996''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

                 Subtitle A--The Home Mortgage Process

Sec. 101. Amendments to the Real Estate Settlement Procedures Act of 
                            1974.
Sec. 102. Simplification and unification of disclosures required under 
                            RESPA and TILA for mortgage transactions.
Sec. 103. Increased regulatory flexibility under the Truth in Lending 
                            Act.
Sec. 104. Reductions in RESPA regulatory burdens; clarifying 
                            amendments.
Sec. 105. Disclosures for adjustable rate mortgages.
Sec. 106. Treatment of certain debt cancellation and deficiency waiver 
                            contracts.
Sec. 107. Conforming definition of ``application'' in various consumer 
                            credit laws so as to exclude requests for 
                            prequalification.
Sec. 108. Recovery of fees.
Sec. 109. Home ownership debt counseling notification.
Sec. 110. Home Mortgage Disclosure Act.
Sec. 111. Technical corrections.
                  Subtitle B--Consumer Banking Reforms

Sec. 141. Amendments to the Truth in Savings Act.
Sec. 142. Information sharing.
Sec. 143. Limit on restitution for Truth in Lending violations if 
                            safety and soundness of violator would be 
                            affected.
Sec. 144. Applicability of Electronic Fund Transfer Act to certain 
                            transactions.
          Subtitle C--Equal Credit Opportunity Act Amendments

Sec. 151. Short title.
Sec. 152. Findings and purpose.
Sec. 153. Equal Credit Opportunity Act amendments.
Sec. 154. Fair Credit Reporting Act amendments.
Sec. 155. Incentives for self-testing.
Sec. 156. Consultation by attorney general required in nonreferral 
                            cases.
Sec. 157. Effective date.
              Subtitle D--Consumer Leasing Act Amendments

Sec. 161. Short title.
Sec. 162. Congressional findings and declaration of purpose.
Sec. 163. Regulations.
Sec. 164. Consumer lease advertising.
Sec. 165. Statutory penalties.
             TITLE II--STREAMLINING GOVERNMENT REGULATIONS

                 Subtitle A--Regulatory Approval Issues

Sec. 201. No prior approval required for well capitalized and well 
                            managed financial services holding 
                            companies.
Sec. 202. Streamlined bank acquisitions by well capitalized and well 
                            managed banking organizations.
Sec. 203. Eliminate filing and approval requirements for insured 
                            depository institutions already controlled 
                            by the same holding company.
Sec. 204. Eliminate redundant approval requirement for Oakar 
                            transactions.
Sec. 205. Elimination of duplicative requirements imposed upon bank 
                            holding companies and other regulatory 
                            relief under the Home Owners' Loan Act.
Sec. 206. Eliminate requirement that approval be obtained for 
                            divestitures.
Sec. 207. Eliminate unnecessary branch applications.
Sec. 208. Eliminate branch applications and requirements for ATMs and 
                            similar facilities.
Sec. 209. Eliminate requirement for approval of investments in bank 
                            premises for well capitalized and well 
                            managed banks.
Sec. 210. Eliminate unnecessary filing for officer and director 
                            appointments.
Sec. 211. Streamlining process for determining new nonbanking 
                            activities.
Sec. 212. Disposition of foreclosed assets.
Sec. 213. Increase in certain credit union loan ceilings.
   Subtitle B--Streamlining of Government Regulations; Miscellaneous 
                               Provisions

Sec. 221. Eliminate the per-branch capital requirement for national 
                            banks and State member banks.
Sec. 222. Branch closures.
Sec. 223. Amendments to the Depository Institutions Management 
                            Interlocks Act.
Sec. 224. Acceleration of repayment to Treasury.
Sec. 225. Constraints on employee-wide benefit plans and home equity 
                            loans.
Sec. 226. Expanded regulatory discretion for small bank examinations.
Sec. 227. Cost reimbursement.
Sec. 228. Identification of foreign nonbank financial institution 
                            customers.
Sec. 229. Paperwork reduction review.
Sec. 230. Daily confirmations for hold-in-custody repurchase 
                            transactions.
Sec. 231. Required regulatory review of regulations.
Sec. 232. Country risk requirements.
Sec. 233. Audit costs.
Sec. 234. Standards for director and officer liability.
Sec. 235. Foreign bank applications.
Sec. 236. Duplicate examination of foreign banks.
Sec. 237. High-cost mortgages.
Sec. 238. Streamlining FDIC approval of new State bank powers.
Sec. 239. Repeal of call report attestation requirement.
Sec. 240. Authorizing bank service companies to organize as limited 
                            liability partnerships.
Sec. 241. Bank investments in Edge Act and agreement corporations.
Sec. 242. Report on the reconciliation of differences between 
                            regulatory accounting principles and 
                            generally accepted accounting principles.
Sec. 243. Waivers authorized for residency requirement for national 
                            bank directors.
Sec. 244. Consultation among examiners.
Sec. 245. Antitying exemptive authority.
                      TITLE III--LENDER LIABILITY

Sec. 301. Lender liability.
    TITLE IV--ANNUAL STUDY AND REPORT ON IMPACT ON LENDING TO SMALL 
                                BUSINESS

Sec. 401. Annual study and report.
                   TITLE V--FINANCIAL SERVICE REFORM

            Subtitle A--Reform of Holding Company Procedures

Sec. 501. Streamlined examination and reporting requirements for all 
                            financial services holding companies.
Sec. 502. Holding company supervision for financial services holding 
                            companies engaged primarily in nonbanking 
                            activities.
Sec. 503. Conversion of unitary savings and loan holding companies to 
                            financial services holding companies.
Sec. 504. Coordination with State law.
Sec. 505. Conforming amendments to the Bank Holding Company Act of 
                            1956.
Sec. 506. Conforming amendments to the Bank Holding Company Act 
                            Amendments of 1970.
Sec. 507. Credit cards for business purposes.
Sec. 508. Prohibitions on certain depository institution associations 
                            with Government-sponsored enterprises.
Sec. 509. Provisions applicable to limited purpose banks.
Sec. 510. Discretion of Federal reserve board.
Sec. 511. Qualified family partnerships.
   Subtitle B--Interagency Banking and Financial Services Task Force

Sec. 521. Interagency banking and financial services task force.
Sec. 522. Financial services advisory committee.
                        TITLE VI--DROUGHT RELIEF

Sec. 601. Cooperative efforts between depository institutions and 
                            farmers and ranchers in drought-stricken 
                            areas.
                    TITLE VII--FINANCIAL ACTIVITIES

Sec. 701. Financial activities.
Sec. 702. Retirement certificates of deposits.
Sec. 703. GAO study of State supervision of national bank insurance 
                            activities.
Sec. 704. National bank licensing requirements.
                  TITLE VIII--DEPOSIT INSURANCE FUNDS

Sec. 801. Short title.
Sec. 802. Special assessment to capitalize SAIF.
Sec. 803. Financing Corporation funding.
Sec. 804. Merger of BIF and SAIF.
Sec. 805. Creation of SAIF special reserve.
Sec. 806. Refund of amounts in deposit insurance fund in excess of 
                            designated reserve amount.
Sec. 807. Assessment rates for SAIF members may not be less than 
                            assessment rates for BIF members.
Sec. 808. Assessments authorized only if needed to maintain the reserve 
                            ratio of a deposit insurance fund.
Sec. 809. Treasury study of common depository institution charter.
Sec. 810. Definitions.

            TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

                 Subtitle A--The Home Mortgage Process

SEC. 101. AMENDMENTS TO THE REAL ESTATE SETTLEMENT PROCEDURES ACT OF 
              1974.

    (a) Employee Compensation.--Section 8(c) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2607) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by striking ``or'' at the end of paragraph (4) and 
        inserting ``(5) an employer's payment to the employer's own 
        bona fide employees for any referral activities, or''.
    (b) Increased Scienter Requirement for Criminal Penalty.--Section 
8(d) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
2607(d)) is amended--
            (1) in paragraph (1), by inserting ``willfully'' after 
        ``persons who''; and
            (2) in paragraph (3), by striking ``was not intentional 
        and''.
    (c) Redesignation of Controlled Business Arrangements as Affiliated 
Business Arrangements.--The Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2601 et seq.) is amended--
            (1) in section 3(7), by striking ``controlled business 
        arrangement'' and inserting ``affiliated business 
        arrangement''; and
            (2) in subsections (c)(4) and (d)(6) of section 8, by 
        striking ``controlled business arrangements'' and inserting 
        ``affiliated business arrangements''.
    (d) Disclosures by Telephone or Electronic Media.--Section 8(c)(4) 
of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
2607(c)(4)(A)) is amended by striking subparagraph (A) and inserting 
the following ``(A)(i) at or before the time of a face-to-face referral 
or referral made in writing (or within 3 business days after a referral 
by telephone, electronic mail, or other electronic media), a written 
disclosure is made of the existence of such an arrangement to the 
person being referred and, in connection with such referral, such 
person is provided a written estimate of the charge or range of charges 
generally made by the provider to which the person is referred, except 
that, in the case of a referral made by a lender (including a referral 
by a lender to an affiliated lender), such written estimate requirement 
may be deemed to have been satisfied through the provision of the 
estimates required under section 5(c), as of the time such estimates 
are provided and (ii) a written receipt of any disclosure required 
pursuant to clause (i) (without regard to the manner in which the 
disclosure is made) is obtained before the closing of the 
transaction,''.
    (e) Limitation on Claims Arising From Violations of Requirements 
for Servicing Mortgages and Administering Escrow Accounts.--Section 16 
of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2614) 
is amended--
            (1) by striking ``section 8 or 9'' and inserting ``section 
        6, 8, or 9''; and
            (2) by striking ``within one year'' and inserting ``within 
        3 years in the case of a violation of section 6 and 1 year in 
        the case of a violation of section 8 or 9''.
    (f) Technical and Conforming Amendments.--
            (1) Section 4(a) of the Real Estate Settlement Procedures 
        Act of 1974 (12 U.S.C. 2603(a)) is amended by striking 
        ``Federal Home Loan Bank Board'' and inserting ``Director of 
        the Office of Thrift Supervision''.
            (2) Section 10(c)(1)(C) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2609(c)(1)(C)) is amended by 
        striking ``Not later than the expiration of the 90-day period 
        beginning on the date of the enactment of the Cranston-Gonzalez 
        National Affordable Housing Act, the'' and inserting ``The''.
    (g) Repeal of Obsolete Provisions.--The Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended by striking 
sections 13, 14 and 15.

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

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

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

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

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

    (a) Unnecessary Disclosure.--Section 6(a) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended to read 
as follows:
    ``(a) Disclosure to Applicant Relating to Assignment, Sale, or 
Transfer of Loan Servicing.--
            ``(1) In general.--Each person who makes a federally 
        related mortgage loan shall disclose to each person who applies 
        for any such loan, at the time of application for the loan, 
        whether the servicing of any such loan may be assigned, sold, 
        or transferred to any other person at any time while such loan 
        is outstanding.
            ``(2) Signature of applicant.--Any disclosure of the 
        information required under paragraph (1) shall not be effective 
        for purposes of this section unless the disclosure is 
        accompanied by a written statement, in such form as the 
        Secretary shall develop before the expiration of the 180-day 
        period beginning on the date of the enactment of the Financial 
        Institutions Regulatory Relief Act of 1996, that the applicant 
        has read and understood the disclosure and that is evidenced by 
        the signature of the applicant at the place where such 
        statement appears in the application.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 180 days after the date of the enactment of this Act.
    (c) Second Mortgages.--Section 3(1)(A) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2602(1)(A)) is amended by 
striking ``or subordinate''.
    (d) Consistency of RESPA and Truth in Lending Act Exemption of 
Business Loans.--Section 7 of the Real Estate Settlement Procedures Act 
of 1974 (12 U.S.C. 2606) is amended--
            (1) by inserting ``(a) In General.--'' before ``This Act''; 
        and
            (2) by inserting at the end the following new subsection:
    ``(b) Interpretation.--In issuing regulations pursuant to section 
19(a) of this Act, the Secretary shall ensure that, with regard to 
subsection (a), the exemption for business credit includes all business 
credit which is exempt from the Truth in Lending Act in accordance with 
section 226.3(a) of the regulations prescribed by the Board of 
Governors of the Federal Reserve System known as `regulation Z' (12 
C.F.R. 226.3(a)), as in effect on the date of enactment of the 
Financial Institutions Regulatory Relief Act of 1996.''.

SEC. 105. DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

    (a) In General.--Section 127A(a)(2)(G) of the Truth in Lending Act 
(15 U.S.C. 1637a(a)(2)(G)) is amended by inserting before the semicolon 
``, or a statement that the monthly payment may increase or decrease 
significantly due to increases in the annual percentage rate''.
    (b) Technical and Conforming Amendment.--Section 127A(b)(3) of the 
Truth in Lending Act (15 U.S.C. 1637a(b)(3)) is amended by striking 
``required under'' and inserting ``referred to in''.
    (c) Alternative to Historical Example For Adjustable Rate Mortgage 
Disclosures.--Section 128 of the Truth in Lending Act (15 U.S.C. 1638) 
is amended by adding at the end the following new subsection:
    ``(e) Disclosure in Lieu of Historical Example.--
            ``(1) In general.--Any regulation prescribed by the Board 
        pursuant to section 105(a) which requires disclosures with 
        respect to any consumer credit transaction other than under an 
        open end credit plan--
                    ``(A) which has a term to maturity of more than 1 
                year and is secured by the principal dwelling of the 
                consumer;
                    ``(B) with respect to which the annual percentage 
                rate on any outstanding balance may increase after the 
                extension is made,
        the regulation shall allow the creditor the option of providing 
        the information described in paragraph (2) with regard to such 
        transaction in lieu of an historical example that illustrates 
        the effects of interest rate changes implemented in accordance 
        with the terms of the transaction.
            ``(2) Substitute information.--The information referred to 
        in paragraph (1) is a written notice provided by the creditor 
        that--
                    ``(A) states that the monthly rate of interest on 
                any outstanding balance may increase or decrease 
                substantially in accordance with the terms of the 
                consumer credit transactions; and
                    ``(B) indicates the maximum rate of interest and 
                monthly payment that would apply with respect to a 
                $10,000 loan if such loan had been originated at a 
                recent rate of interest, as determined in accordance 
                with regulations prescribed by the Board.''.
    (d) Ensuring Honoring of Lock-in Promises.--Section 128(b) of the 
Truth in Lending Act (15 U.S.C. 1638(b)) is amended by adding at the 
end the following new paragraph:
    ``(3) In the case of a residential mortgage transaction, the 
disclosures under subsection (a) shall include the following:
            ``(A) The note rate and points, and a statement, if 
        applicable, that these terms are subject to change.
            ``(B) A statement that the creditor must include the 
        disclosed note rate and points in the credit agreement unless, 
        in relation to either or both of those terms--
                    ``(i) the disclosure clearly and conspicuously 
                indicates that the term is subject to change, or
                    ``(ii) in the case of any term to which clause (i) 
                does not apply--
                            ``(I) the creditor has clearly and 
                        conspicuously indicated that the term is 
                        conditioned on closing the transaction within a 
                        prescribed time;
                            ``(II) the creditor has promptly and 
                        clearly communicated to the consumer the 
                        information and documentation that the consumer 
                        is required to provide to the creditor; and
                            ``(III) the consumer has failed to provide 
                        such information and documentation within a 
                        reasonable time after receiving that 
                        communication.''.

SEC. 106. TREATMENT OF CERTAIN DEBT CANCELLATION AND DEFICIENCY WAIVER 
              CONTRACTS.

    Section 106(c) of the Truth in Lending Act (15 U.S.C. 1605(c)) is 
amended to read as follows:
    ``(c) Treatment of Certain Debt Cancellation and Deficiency Waiver 
Contracts.--
            ``(1) In general.--Charges and premiums for any applicable 
        insurance or product written in connection with any consumer 
        credit transaction shall be included in the finance charge 
        unless a clear and specific statement in writing is furnished 
        by the creditor to the consumer to whom credit is extended--
                    ``(A) setting forth the cost of the insurance or 
                product, if obtained from or through the creditor; and
                    ``(B) stating that the consumer to whom credit is 
                extended may choose the person through which the 
                insurance or product is to be obtained.
            ``(2) Applicable insurance or product defined.--For 
        purposes of paragraph (1), the term `applicable insurance or 
        product' means--
                    ``(A) any insurance against--
                            ``(i) loss of or damage to property; or
                            ``(ii) liability arising out of the 
                        ownership or use of property; and
                    ``(B) any voluntary insurance or noninsurance 
                product that provides protection against part or all of 
                the debtor's liability for amounts in excess of the 
                value of the collateral securing the debtor's 
                obligation.''.

SEC. 107. CONFORMING DEFINITION OF ``APPLICATION'' IN VARIOUS CONSUMER 
              CREDIT LAWS SO AS TO EXCLUDE REQUESTS FOR 
              PREQUALIFICATION.

    (a) Home Mortgage Disclosure Act.--Section 303 of the Home Mortgage 
Disclosure Act of 1975 (12 U.S.C. 2802) is amended--
            (1) by striking ``For purposes of'' and inserting ``(a) In 
        General.--For purposes of'';
            (2) by striking ``and'' at the end of paragraph (5);
            (3) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(7) subject to subsection (b), the term `application'--
                    ``(A) means oral or written request for an 
                extension of credit secured or to be secured by an 
                identified parcel of real estate or dwelling that is 
                made in accordance with procedures established by the 
                creditor for the type of credit requested; and
                    ``(B) does not include a request by a prospective 
                loan applicant for a preliminary determination, whether 
                or not a specific parcel of real estate or dwelling is 
                identified, of--
                            ``(i) the likelihood that the prospective 
                        loan applicant would qualify for credit under 
                        the standards established by the creditor; or
                            ``(ii) the amount of credit for which the 
                        prospective applicant would likely qualify.
    ``(b) Designation By Consumer of Request as Application or 
Prequalification Request.--If an oral or written request by a 
prospective loan applicant relates to an identified parcel of real 
estate or dwelling, the applicant may designate whether the request 
shall be treated by the creditor as an application described in 
subparagraph (A) of subsection (a)(7) or as a request for a preliminary 
determination described in subparagraph (B) of subsection (a)(7).''.
    (b) Real Estate Settlement Procedures Act.--Section 3 of the Real 
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602) (as amended 
by section 101(a) of this subtitle) is amended by adding at the end the 
following new paragraph:
            ``(11) the term `application' has the meaning given such 
        term in section 303(7) of the Home Mortgage Disclosure Act of 
        1975.''.
    (c) Equal Credit Opportunity Act.--
            (1) Prequalification request is not an application.--
        Section 702 of the Equal Credit Opportunity Act (15 U.S.C. 
        1691a) is amended by adding at the end the following new 
        subsection:
    ``(h) Prequalification requests.--
            ``(1) In general.--A person who makes a request described 
        in subparagraph (B) of section 303(7) of the Home Mortgage 
        Disclosure Act of 1975 shall not be treated as an applicant for 
        purposes of this title, and the request shall not be treated as 
        an application, unless the request relates to identified real 
        or personal property and such person elects to treat the 
        request as an application.
            ``(2) Person who makes a prequalification request 
        defined.--The term `person who makes a prequalification 
        request' means any person described in paragraph (1) who has 
        not elected to be treated as an applicant.
            ``(3) Prequalification request defined.--The term 
        `prequalification request' means a request described in 
        subparagraph (B) of section 303(7) of the Home Mortgage 
        Disclosure Act of 1975.''.
            (2) Discrimination prohibited against any person who makes 
        a prequalification request.--Section 701(a) of the Equal Credit 
        Opportunity Act (15 U.S.C. 1691(a)) is amended--
                    (A) by inserting ``or any person who makes a 
                prequalification request'' after ``any applicant'';
                    (B) in paragraphs (1) and (3), by inserting ``or 
                person'' after ``the applicant''; and
                    (C) in paragraph (2), by inserting ``or person's'' 
                after ``the applicant's''.
            (3) Adverse response to prequalification request not 
        treated as an adverse action.--The last sentence of section 
        701(d)(6) of the Equal Credit Opportunity Act (15 U.S.C. 
        1691(d)(6)) is amended by inserting ``and, in the case of a 
        federally related mortgage loan (as defined in section 3(1) of 
        the Real Estate Settlement Procedures Act of 1974), a 
        creditor's response to a prequalification request'' before the 
        period.
    (d) Truth in Lending Act.--Section 103 of the Truth in Lending Act 
(15 U.S.C. 1602) is amended--
            (1) in the 2d sentence of subsection (g) by inserting 
        ``(other than a bailment or lease which is terminable without 
        penalty at any time by the consumer and was entered into in 
        compliance with such appropriate noncredit disclosures as the 
Board may prescribe)'' after ``bailment or lease''; and
            (2) by adding at the end the following new subsection:
    ``(cc) Application.--In the case of any federally related mortgage 
loan (as defined in section 3(1) of the Real Estate Settlement 
Procedures Act of 1974), the term `application' has the meaning given 
to such term in section 303(7) of the Home Mortgage Disclosure Act of 
1975.''.
    (e) Fair Credit Reporting Act.--Section 615 of the Fair Credit 
Reporting Act (15 U.S.C. 1681m) is amended by adding at the end the 
following new subsection:
    ``(d) Certain Prequalification Requests Excluded From Scope of 
Section.--This section shall not apply with respect to a creditor's 
response to a prequalification request (as defined in section 702(h)(3) 
of the Equal Credit Opportunity Act) with respect to a federally 
related mortgage loan (as defined in section 3(1) of the Real Estate 
Settlement Procedures Act of 1974).''.

SEC. 108. RECOVERY OF FEES.

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

SEC. 109. HOME OWNERSHIP DEBT COUNSELING NOTIFICATION.

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

SEC. 110. HOME MORTGAGE DISCLOSURE ACT.

    (a) Section 309 of the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2808) is amended--
            (1) in the second sentence, by striking ``$10,000,000'' and 
        inserting ``$50,000,000''; and
            (2) by inserting at the end the following new sentence: 
        ``The dollar amount in this section shall be adjusted annually 
        after December 31, 1994, by the annual percentage increase in 
        the Consumer Price Index for Urban Wage Earners and Clerical 
        Workers published by the Bureau of Labor Statistics.''.
    (b) Section 304 of the Home Mortgage Disclosure Act of 1975 (12 
U.S.C. 2803) is amended by adding at the end the following new 
subsection:
    ``(m) Opportunity To Reduce Compliance Burden.--
            ``(1) A depository institution shall be considered to have 
        satisfied the public availability requirements of subsection 
        (a) if such institution keeps the information required under 
        that subsection at its home office and provides notice at the 
        branch locations specified in such subsection that such 
        information is available upon request from the home office of 
        the institution. A home office of the depository institution 
        receiving a request for such information pursuant to this 
        subsection shall provide the information pertinent to the 
        location of the branch in question within fifteen days of the 
        receipt of the written request.
            ``(2) In complying with paragraph (1), a depository 
        institution may provide the individual requesting such 
        information, at the institution's choice, with--
                    ``(A) a paper copy of the information requested; or
                    ``(B) if acceptable to the individual, the 
                information through a form of electronic medium, such 
                as computer disc.''.

SEC. 111. TECHNICAL CORRECTIONS.

    Section 139(a) of the Truth in Lending Act (as added by section 4 
of the Truth in Lending Act Amendments of 1995) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``subject to this title'' and inserting ``referred to in 
        section 106(f)''; and
            (2) in paragraph (3)(A), by striking ``may'' and all that 
        follows through ``charge'' the first place such term appears.

                  Subtitle B--Consumer Banking Reforms

SEC. 141. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

    (a) Repeal.--Section 271 of the Truth in Savings Act (12 U.S.C. 
4310) is hereby repealed.
    (b) On-Premises Displays.--Section 263(c) of the Truth in Savings 
Act (12 U.S.C. 4302(c)) is amended--
            (1) by striking paragraph (2);
            (2) by striking ``(1) In general.--''; and
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively, and indenting 
        appropriately.
    (c) Depository Institution Definition.--Section 274(6) of the Truth 
in Savings Act (12 U.S.C. 4313(6)) is amended by inserting before the 
period ``, but does not include any nonautomated credit union that was 
not required to comply with the requirements of this title as of the 
date of enactment of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1995, pursuant to the determination of the National 
Credit Union Administration Board''.
    (d) Time Deposits.--Section 266(a)(3) of the Truth in Savings Act 
(12 U.S.C. 4305(a)(3)) is amended by inserting ``has a maturity of more 
than 30 days'' after ``deposit which''.

SEC. 142. INFORMATION SHARING.

    Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new subsection:
    ``(s) Customer Access to Products.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any depository institution, or any affiliate or subsidiary 
        of any depository institution, may share or exchange 
        information or otherwise transfer information between or among 
        themselves without any restriction or limitation if it is 
        clearly and conspicuously disclosed that the information may be 
        communicated among such persons and the consumer is given the 
        opportunity, before the time that the information is initially 
        communicated, to direct that such information not be 
        communicated among such persons.
            ``(2) Definition.--For purposes of this subsection, the 
        term `information' means any and all data, records, or other 
        information and material obtained or maintained by any 
        depository institution or any affiliate or subsidiary thereof 
        in the ordinary course of its business that relates in any way 
        to a person (as such term is defined in section 603(b) of the 
        Fair Credit Reporting Act) who applies for, maintains, or has 
        maintained an account or credit relationship with or applied 
        for, purchased or obtained other products or services from any 
        depository institution or any affiliate or subsidiary of any 
        depository institution, regardless of the source of manner in 
        which the information is obtained or furnished.
            ``(3) Rule of construction.--Any depository institution, or 
        any affiliate or subsidiary of any depository institution, 
        relying on this subsection shall not be deemed to be a consumer 
        reporting agency, user, or third party, and the information 
        itself shall not constitute a consumer report, within the 
        meaning of the Fair Credit Reporting Act or other similar 
        law.''.

SEC. 143. LIMIT ON RESTITUTION FOR TRUTH IN LENDING VIOLATIONS IF 
              SAFETY AND SOUNDNESS OF VIOLATOR WOULD BE AFFECTED.

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

SEC. 144. APPLICABILITY OF ELECTRONIC FUND TRANSFER ACT TO CERTAIN 
              TRANSACTIONS.

    (a) Study Required.--The Board of Governors of the Federal Reserve 
System shall conduct a study of whether, and the extent to which, the 
Electronic Fund Transfer Act is applicable to, or should or should not 
be applicable to, any payment for transactions by a person through the 
use of value stored on, or assigned to, a card, device, or computer if 
the card, device, or computer is not used to actually access an account 
in order to effect the transaction.
    (b) Report.--
            (1) In general.--The Board of Governors of the Federal 
        Reserve System shall submit a report on the study required 
        under subsection (a) to the Congress before the end of the 90-
        day period beginning on the date of the enactment of this Act.
            (2) Contents.--The report submitted under paragraph (1) 
        shall contain the findings and conclusions of the Board of 
        Governors of the Federal Reserve System and such 
        recommendations for legislative and administrative action as 
        the Board considers to be appropriate.

          Subtitle C--Equal Credit Opportunity Act Amendments

SEC. 151. SHORT TITLE.

    This subtitle may be cited as the ``Equal Credit Opportunity Act 
Amendments of 1996''.

SEC. 152. FINDINGS AND PURPOSE.

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

SEC. 153. EQUAL CREDIT OPPORTUNITY ACT AMENDMENTS.

    (a) Notice of Adverse Action.--Section 701(d)(2)(B) of the Equal 
Credit Opportunity Act (15 U.S.C. 1691(d)(2)(B)) is amended to read as 
follows:
                    ``(B) giving written notification of adverse action 
                which discloses--
                            ``(i) the applicant's right to a statement 
                        of reasons within 30 days after receipt by the 
                        creditor of a request made within 60 days after 
                        such notification;
                            ``(ii) if credit is denied or the charge 
                        for such credit is increased either wholly or 
                        partly because of information contained in a 
                        consumer report from a consumer reporting 
                        agency--
                                    ``(I) that fact and the name, 
                                address, and telephone number of the 
                                consumer reporting agency making the 
                                report;
                                    ``(II) the consumer's right to 
                                obtain, under section 612, a free copy 
                                of a consumer report on the consumer, 
                                from the consumer reporting agency 
                                referred to in subclause (I) within the 
                                30-day period provided under such 
                                section; and
                                    ``(III) the consumer's right to 
                                dispute, under section 611, with a 
                                consumer reporting agency the accuracy 
                                or completeness of any information in a 
                                consumer report furnished by the 
                                agency.
                            ``(iii) if credit is denied or the charge 
                        for credit is increased either wholly or partly 
                        because of information obtained from a person 
                        other than a consumer reporting agency bearing 
                        upon the consumer's credit worthiness, credit 
                        standing, credit capacity, character, general 
                        reputation, personal characteristics or mode of 
                        living, that fact and the right to receive 
                        disclosure of the nature of the information so 
                        received, within a reasonable period of time, 
                        upon the consumer's written request for 
                        information within 60 days after learning of 
                        such adverse action; and
                            ``(iv) the identity of the person or office 
                        from which such notification may be obtained.
                Such statement of reasons may be given orally if the 
                written notification advises the applicant of his right 
                to have the statement of reasons confirmed in writing 
                on written request.''.
    (b) Technical and Conforming Amendment.--Section 701(d)(3) of the 
Equal Credit Opportunity Act (15 U.S.C. 1691(d)(3)) is amended by 
striking the period at the end and adding the following: ``and, to the 
extent applicable, the name, address, and telephone number of the 
consumer reporting agency identified in accordance with the 
requirements of subsection (d)(3)(ii) and a statement of the right to 
obtain disclosure of the nature of the information upon which adverse 
action was taken as required by such subsection.''.
    (c) Reasonable Procedures To Assure Compliance.--Section 706 of the 
Equal Credit Opportunity Act (15 U.S.C. 1691e) is amended by adding at 
the end the following new subsection:
    ``(l) Reasonable Procedures To Assure Compliance.--No person shall 
be held liable for any violation of subsection 701(d) if such person 
shows by a preponderance of the evidence that at the time of the 
alleged violation the person maintained reasonable procedures to assure 
compliance with the provisions of the subsection.''.

SEC. 154. FAIR CREDIT REPORTING ACT AMENDMENTS.

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

SEC. 155. INCENTIVES FOR SELF-TESTING.

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

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

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

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

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

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

SEC. 156. CONSULTATION BY ATTORNEY GENERAL REQUIRED IN NONREFERRAL 
              CASES.

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

SEC. 157. EFFECTIVE DATE.

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

              Subtitle D--Consumer Leasing Act Amendments

SEC. 161. SHORT TITLE.

    This subtitle may be cited as the ``Consumer Leasing Act Amendments 
of 1996''.

SEC. 162. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE.

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

SEC. 163. REGULATIONS.

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

``SEC. 187. REGULATIONS.

    ``(a) Regulations Authorized.--
            ``(1) In general.--The Board shall write regulations or 
        staff commentary, if appropriate, to update and clarify the 
        requirements and definitions for lease disclosures, contracts, 
        and any other specific issues related to consumer leasing which 
        would carry out the purposes of this chapter, to prevent any 
        circumvention of the chapter, and to facilitate compliance with 
        the requirements of the chapter.
            ``(2) Classifications, adjustments.--The regulations 
        prescribed under paragraph (1) may contain classifications and 
        differentiations and may provide for adjustments and exceptions 
        for any class of transaction.
    ``(b) Model Disclosures.--The Board shall publish model disclosure 
forms and clauses to facilitate compliance with the disclosure 
requirements and to aid the consumer in understanding the transaction. 
In designing forms, the Board shall consider the use by lessors of data 
processing or similar automated equipment. Use of the models shall be 
optional. A lessor who properly uses the material aspects of the models 
shall be deemed to be in compliance with the disclosure requirements.
    ``(c) Effective Dates.--
            ``(1) In general.--Any regulation of the Board, or any 
        amendment or interpretation of any regulation of the Board, 
        that requires a disclosure different from the disclosures 
        previously required shall have an effective date of the October 
        1 that follows the date of promulgation by at least 6 months.
            ``(2) Longer period.--The Board may, in the Board's 
        discretion, lengthen the period of time referred to in 
        paragraph (1) to permit lessors to adjust their forms to 
        accommodate new requirements.
            ``(3) Shorter period.--The Board may also shorten the 
        period of time referred to in paragraph (1) if the Board makes 
        a specific finding that such action is necessary to comply with 
        the findings of a court or to prevent unfair or deceptive 
        practices.
            ``(4) Compliance before effective date.--Lessors may comply 
        with any newly promulgated disclosure requirement before the 
        effective date of such requirement.''.
    (b) Clerical Amendment.--The table of sections for chapter 5 of 
title I of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) 
is amended by inserting after the item relating to section 186 the 
following new item:

``187. Regulations.''.

SEC. 164. CONSUMER LEASE ADVERTISING.

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

``SEC. 184. CONSUMER LEASE ADVERTISING.

    ``(a) In General.--If an advertisement for a consumer lease states 
the amount of any payment or states that any or no initial payment is 
required, the advertisement shall also clearly and conspicuously state 
the following terms which shall be segregated from all other 
information and identified as `Important Information for Consumers':
            ``(1) That the transaction advertised is a lease.
            ``(2) The total of initial payments required at or before 
        consummation of the lease or delivery of the property, 
        whichever is later.
            ``(3) Whether a security deposit is required.
            ``(4) The number, amounts, and timing of scheduled 
        payments.
            ``(5) The capitalized cost as defined by the Board and 
        stated as a dollar amount that represents either the actual 
        capitalized cost at which the lessor is willing to lease the 
        property or the average capitalized cost as a percentage of 
        manufacturer's suggested retail price of all similar property 
        leased by the advertiser or lessor during the most recent 6-
        month period ending either December 31, or June 30.
            ``(6) For a lease in which the consumer's liability at the 
        end of the lease term is based on the anticipated residual 
        value of the property, whether an extra charge may be imposed 
at the end of the lease term.
    ``(b) Clearly and Conspicuously.--
            ``(1) The disclosures required by this section shall be 
        given clearly and conspicuously in accordance with the 
        following requirements:
                    ``(A) In print advertisements, the required 
                disclosure shall appear in a type size, shade, 
                contrast, prominence, and location as to be readily 
                noticeable, readable, and comprehensible to an ordinary 
                consumer.
                    ``(B) In advertisements on the Internet, the 
                required disclosures shall appear in a type size, 
                shade, contrast, prominence, and location as to be 
                readily readable and comprehensible to users and shall 
                be separated from marketing and promotional information 
                and easily accessible under the label or heading 
                `Important Information for Consumers'.
                    ``(C) In any other form of advertising, the 
                disclosures shall be made in accordance with 
                regulations prescribed by the Board which shall require 
                that the disclosures be made in a similar manner to the 
                disclosures required under subparagraphs (A) and (B) to 
                the extent appropriate and practicable.
            ``(c) Advertisement for Lease.--No advertisement to promote 
        or assist, directly or indirectly, any consumer lease for 
        personal use of any property shall--
            ``(1) state that no downpayment is required on the lease 
        when the lessor requires a capitalized cost reduction payment, 
        acquisition fee, property trade-in, or other payment upon 
        initiation of the lease, except that payment of the first 
        monthly payment on the lease, and any refundable deposit shall 
        not be considered a downpayment;
            ``(2) incorporate within the same advertisement the amounts 
        of any payment, downpayment, or other term pertaining to both a 
        lease transaction and to an alternative installment credit 
        transaction, except with respect to print advertisements where 
        lease information must be clearly and conspicuously separated 
        from nonlease information;
            ``(3) include the amounts of any payment, downpayment, or 
        other term of leases that the lessor does not customarily 
        provide or will offer only to selected consumers, or the 
        amounts of any payment, downpayment, or other term of leases of 
        property that the lessor does not have in sufficient quantities 
        to meet reasonably anticipated consumer demand for the property 
        at such advertised terms;
            ``(4) display any lease term, including the amount of any 
        monthly payment, or downpayment or no downpayment more 
        prominently than the term `lease' or more prominently than the 
        amount of the total payment required to be paid at the 
        inception of the lease; and
            ``(5) fail to include a prominent statement of the 
        limitations on use of leased property, such as mileage.
    ``(d) Limitation.--Nothing contrary to, inconsistent with, or in 
mitigation of the required disclosures shall be used in any 
advertisement in any medium and no audio, videos, or print technique 
shall be used that is likely to obscure or detract significantly from 
the communication of the disclosures.
    ``(e) Advertising Medium Not Liable.--Any owner or personnel of any 
medium, including the owner of any home page on the Internet, in which 
an advertisement appears or through which it is disseminated shall not 
be liable under this section.''

SEC. 165. STATUTORY PENALTIES.

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

             TITLE II--STREAMLINING GOVERNMENT REGULATIONS

                 Subtitle A--Regulatory Approval Issues

SEC. 201. NO PRIOR APPROVAL REQUIRED FOR WELL CAPITALIZED AND WELL 
              MANAGED FINANCIAL SERVICES HOLDING COMPANIES.

    Section 4(j) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(j)) is amended--
            (1) in paragraph (1), by striking ``No'' and inserting 
        ``Except as provided in paragraph (3), no''; and
            (2) by adding at the end the following new paragraphs:
            ``(3) No notice required for certain transactions.--
        Notwithstanding paragraph (1), no notice under subsection 
        (c)(8) or (a)(2)(B) is required for a proposal by a financial 
        services holding company to engage in any activity or acquire 
        or retain 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 financial services 
                        holding company is well capitalized;
                            ``(ii) the lead depository institution of 
                        such holding company is well capitalized;
                            ``(iii) well capitalized depository 
                        institutions control at least 80 percent of the 
                        aggregate total risk-weighted assets of 
                        depository institutions controlled by such 
                        holding company; and
                            ``(iv) no depository institution controlled 
                        by such holding company is undercapitalized.
                    ``(B) Managerial criteria.--
                            ``(i) Well managed.--At the time of the 
                        transaction, the acquiring financial services 
                        holding company, the lead depository 
                        institution of such holding company, and 
                        depository institutions that control at least 
                        80 percent of the aggregate total risk-weighted 
                        assets of depository institutions controlled by 
                        such holding company are well managed.
                            ``(ii) Limitation on poorly managed 
                        institutions.--No depository institution which 
                        is controlled by the acquiring financial 
                        services holding company has received any of 
                        the lowest 2 composite ratings at the later of 
                        the institution's most recent examination or 
                        subsequent review.
                            ``(iii) Recently acquired institutions.--
                        Depository institutions acquired by the 
                        financial services holding company during the 
                        12-month period ending on the date of the 
                        proposed transaction may be excluded for 
                        purposes of clause (ii) if--
                                    ``(I) the financial services 
                                holding company has developed a plan 
                                acceptable to the appropriate Federal 
                                banking agency for the institution to 
                                restore the capital and management of 
                                the institution; and
                                    ``(II) all such depository 
                                institutions represent, in the 
                                aggregate, less than 25 percent of the 
                                total risk-weighted assets of all 
                                depository institutions controlled by 
                                the financial services holding company.
                    ``(C) Activities permissible.--Following 
                consummation of the proposed transaction, the financial 
                services 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 any regulation, order, or advisory opinion 
                        under such subsection that is in effect at the 
                        time of the proposed transaction, subject to 
                        all of the restrictions, terms, and conditions 
                        of such subsection and such regulation, order, 
                        or advisory opinion; and
                            ``(ii) such other activities as are 
                        otherwise permissible under this Act, subject 
                        to the restrictions, terms and conditions, 
                        including any prior notice or approval 
                        requirements, provided in this Act.
                    ``(D) Size of acquisition.--
                            ``(i) Asset size.--The book value of the 
                        total risk-weighted assets acquired does not 
                        exceed 10 percent of the consolidated total 
                        risk-weighted assets of the acquiring financial 
                        services holding company.
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated tier 1 capital of the acquiring 
                        financial services holding company.
                    ``(E) Notice not otherwise warranted.--For 
                proposals described in paragraph (5)(C), the Board has 
                not, before the conclusion of the period described in 
                such paragraph, advised the financial services holding 
                company that a notice under paragraph (1) is required.
                    ``(F) Special provision for the acquisition of 
                savings associations.--In the case of an acquisition of 
                the shares or assets of a savings association in 
                accordance with paragraph (5), the lead insured 
                depository institution subsidiary of the acquiring 
                financial services holding company and insured 
                depository institution subsidiaries of such holding 
                company which control at least 80 percent of the 
                aggregate total risk-weighted assets of insured 
                depository institutions controlled by such holding 
                company, have received a rating of `satisfactory' or 
                better in meeting community credit needs pursuant to 
                section 807 of the Community Reinvestment Act of 1977 
                during the most recent examinations of such depository 
                institutions.
            ``(5) Notification.--
                    ``(A) Commencement of activities approved by 
                rule.--A financial services holding company that 
                qualifies under paragraph (4) and 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.
                    ``(B) Subsequent notice.--A financial services 
                holding company that commences an activity under 
                subsection (c)(8) without prior notice to the Board 
                shall provide written notice to the Board no later than 
10 business days after commencing the activity.
                    ``(C) Activities permitted by order and 
                acquisitions.--
                            ``(i) In general.--At least 12 business 
                        days prior to commencing any activity (other 
                        than an activity described in subparagraph (A)) 
                        or acquiring shares or assets of any company in 
                        a proposal that qualifies under paragraph (4), 
                        the financial services holding company shall 
                        provide written notice to the Board of the 
                        proposal, unless the Board determines that no 
                        notice or a shorter notice period is 
                        appropriate.
                            ``(ii) Description of proposed 
                        activities.--A notice under clause (i) shall 
                        include a description of the proposed 
                        activities and the terms of any proposed 
                        acquisition.
                    ``(D) Acquisitions of savings associations.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (C) and except as 
                        provided in clause (ii), a financial services 
                        holding company which proposes to acquire the 
                        shares or assets of a savings association 
                        pursuant to this paragraph shall, at least 30 
                        days before 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.
                            ``(ii) Exception in case of compliance with 
                        approved strategic plan.--Clause (i) shall not 
                        apply with respect to a financial services 
                        holding company referred to in such clause if, 
                        at the time of the transaction, the lead 
                        insured depository institution of such holding 
                        company, and insured depository institutions 
                        that control at least 80 percent of the 
                        aggregate total risk-weighted assets of insured 
                        depository institutions controlled by such 
                        holding company, have received a rating of 
                        `satisfactory' or better in the most recent 
                        evaluation of compliance with strategic plans 
                        which have been--
                                    ``(I) submitted by such 
                                institutions to the appropriate Federal 
                                financial supervisory agency (as 
                                defined in section 803(1) of the 
                                Community Reinvestment Act of 1977) in 
                                accordance with regulations prescribed 
                                under the Community Reinvestment Act of 
                                1977; and
                                    ``(II) approved by each such 
                                agency.
            ``(6) Adjustment of amounts.--The Board may, by regulation, 
        adjust the amounts and the manner in which the percentage of 
        depository institutions is calculated under subparagraph 
        (B)(i), (B)(iii)(II), or (D) of paragraph (4) if the Board 
        determines that any such adjustment is consistent with safety 
        and soundness and the purposes of this Act.
            ``(7) Expedited procedure for new activities.--
                    ``(A) Expedited preacquisition review.--After the 
                end of the 12-day period referred to in paragraph 
                (5)(C) and subject to any final ruling under 
                subparagraph (B), a financial services holding company 
                may acquire a company engaged in activities that the 
                company believes are financial in nature for purposes 
                of subsection (c)(8) and that the Board has not 
                previously reviewed under such subsection if--
                            ``(i) the proposal qualifies under all of 
                        the criteria in paragraph (4) other than 
                        paragraph (4)(C);
                            ``(ii) the financial services holding 
                        company provides the notice required under 
                        paragraph (5)(C), and includes with such notice 
                        an explanation of the facts and circumstances 
                        that provide a reasonable basis for concluding 
                        that the proposed activities are financial in 
                        nature or incidental to such financial 
                        activities; and
                            ``(iii) before the end of such 12-day 
                        period, the Board has not--
                                    ``(I) required a notice under 
                                paragraph (1) with respect to the 
                                proposed transaction; or
                                    ``(II) advised the financial 
                                services holding company that the 
                                company has failed to provide a 
                                reasonable basis for concluding that 
                                the proposed activities are financial 
in nature or incidental to such financial activities.
                    ``(B) Postacquisition review.--
                            ``(i) Notice procedure.--A financial 
                        services holding company which is permitted to 
                        make an acquisition under this paragraph shall 
                        file a notice with the Board in accordance with 
                        paragraph (1) before the end of the 30-day 
                        period beginning on the date of the 
                        consummation of the acquisition.
                            ``(ii) Limited review.--The Board's review 
                        of a postconsummation notice required under 
                        this subparagraph shall be limited to 
                        determining whether the proposed activities are 
                        permissible under subsection (c)(8), including 
                        whether the proposal meets the criteria in 
                        paragraph (2)(A).
                            ``(iii) Conditional action.--No provision 
                        of this paragraph shall be construed as 
                        limiting in any way the authority of the Board 
                        under this section to impose conditions on the 
                        conduct of any activity or the ownership of any 
                        company.
                            ``(iv) Divestiture of impermissible 
                        activities.--If the Board determines that any 
                        proposed activity is not permissible under 
                        subsection (c)(8), the financial services 
                        holding company shall terminate the activity or 
                        divest the company acquired in reliance on this 
                        paragraph before the end of the 2-year period 
                        beginning on the date of such determination.
                    ``(C) Initial decision not prejudicial to 
                subsequent determination.--A decision by the Board 
                under subparagraph (A) not to require a notice under 
                paragraph (1) during the 12-day period referred to in 
                such subparagraph shall not prejudice the Board's 
                decision under subparagraph (B).''.

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

    Section 3 of the Bank Holding Company Act (12 U.S.C. 1842) is 
amended by adding at the end the following new subsection:
    ``(h) No Approval Required for Certain Transactions.--
            ``(1) In general.--Notwithstanding paragraph (3) or (5) of 
        subsection (a) and subject to paragraphs (5) and (6), an 
        acquisition of shares by a registered bank holding company, or 
        a merger or consolidation between registered bank holding 
        companies, shall be deemed approved at the conclusion of the 
        period specified in subparagraph (G) if all of the following 
        conditions have been met:
                    ``(A) Financial and managerial criteria.--
                            ``(i) Well capitalized bank holding 
                        company.--Both at the time of and immediately 
                        after the proposed transaction, the acquiring 
                        bank holding company is well capitalized.
                            ``(ii) Well capitalized lead insured 
                        depository institution.--Both at the time of 
                        and immediately after the proposed transaction, 
                        the lead insured depository institution of the 
                        acquiring bank holding company is well 
                        capitalized.
                            ``(iii) Capital of other insured depository 
                        institutions.--At the time of the transaction, 
                        well capitalized insured depository 
                        institutions control at least 80 percent of the 
                        aggregate total risk-weighted assets of insured 
                        depository institutions controlled by the 
                        acquiring bank holding company.
                            ``(iv) No undercapitalized insured 
                        depository institutions.--At the time of the 
                        transaction, no insured depository institution 
                        controlled by the acquiring bank holding 
                        company is undercapitalized.
                            ``(v) Well managed.--
                                    ``(I) In general.--At the time of 
                                the transaction, the acquiring bank 
                                holding company, its lead insured 
                                depository institution, and insured 
                                depository institutions that control at 
                                least 90 percent of the aggregate total 
                                risk-weighted assets of insured 
                                depository institutions controlled by 
                                such holding company are well managed.
                                    ``(II) No poorly managed 
                                institutions.--Except with respect to 
                                insured depository institutions 
                                described in paragraph (2), no insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                received 1 of the 2 lowest composite 
                                ratings at the later of the 
                                institution's most recent examination 
                                or subsequent review.
                    ``(B) CRA ratings.--Except with respect to insured 
                depository institutions described in paragraph (3), the 
                lead insured depository institution subsidiary of the 
                acquiring financial services holding company and 
                insured depository institution subsidiaries of such 
                holding company which control at least 80 percent of 
                the aggregate total risk-weighted assets of insured 
                depository institutions controlled by such holding 
                company have received a rating of `satisfactory' or 
                better in meeting community credit needs pursuant to 
                section 807 of the Community Reinvestment Act of 1977 
                during the most recent examinations of such depository 
                institutions.
                    ``(C) Competitive criteria.--Consummation of the 
                proposal complies with guidelines established by the 
                Board by regulation, after consultation with the 
                Attorney General, that identify proposals that are not 
likely to have a significantly adverse effect on competition in any 
relevant market.
                    ``(D) Size of acquisition.--
                            ``(i) Asset size.--The book value of the 
                        total assets to be acquired does not exceed 10 
                        percent of the consolidated total risk weighted 
                        assets of the acquiring bank holding company.
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.
                    ``(E) Interstate acquisitions.--Board approval of 
                the transaction is not prohibited under subsection (d).
                    ``(F) Compliance criterion.--During the 12-month 
                period ending on the date of the transaction, no 
                administrative enforcement action has been commenced, 
                and no cease and desist order has been issued pursuant 
                to section 8 of the Federal Deposit Insurance Act, 
                against any bank holding company involved in the 
                transaction or any depository institution subsidiary of 
                any such holding company and no such enforcement 
                action, order, or other administrative enforcement 
                proceeding is pending as of such date.
                    ``(G) Other considerations.--Board approval of the 
                transaction is not prohibited under subsection (c)(3).
                    ``(H) Notification.--The acquiring bank holding 
                company provides written notice of the transaction, 
                including a description of the terms of the 
                transaction, to the Board and the Attorney General, 
                simultaneously, at least 15 business days (or such 
                shorter period as permitted by the Board) before the 
                transaction is consummated.
                    ``(I) No board disapproval.--Before the end of the 
                15-day period (or the shorter period) referred to in 
                subparagraph (H), the Board has not required an 
                application under subsection (a).
                    ``(J) Public notice.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the acquiring financial services 
                        holding company publishes notice of the 
                        application in a newspaper of general 
                        circulation in the affected communities at 
                        least 30 days before consummation of the 
                        transaction.
                            ``(ii) Exception in case of compliance with 
                        approved strategic plan.--Clause (i) shall not 
                        apply with respect to a financial services 
                        holding company referred to in such clause if, 
                        at the time of the transaction, the lead 
                        insured depository institution of such holding 
                        company, and insured depository institutions 
                        that control at least 80 percent of the 
                        aggregate total risk-weighted assets of insured 
                        depository institutions controlled by such 
                        holding company, have received a rating of 
                        `satisfactory' or better in the most recent 
                        evaluation of compliance with strategic plans 
                        which have been--
                                    ``(I) submitted by such 
                                institutions to the appropriate Federal 
                                financial supervisory agency (as 
                                defined in section 803(1) of the 
                                Community Reinvestment Act of 1977) in 
                                accordance with regulations prescribed 
                                under the Community Reinvestment Act of 
                                1977; and
                                    ``(II) approved by each such 
                                agency.
            ``(2) Special rule relating to the requirement for well 
        managed institutions.--Insured depository institutions which 
        have been acquired by a bank holding company during the 12-
        month period preceding the date of the transaction may be 
        excluded for purposes of paragraph (1)(A)(v)(II) if--
                    ``(A) the bank holding company has developed a plan 
                for the institution to restore the capital and 
                management of the institution which is acceptable to 
                the appropriate Federal banking agency; and
                    ``(B) all such insured depository institutions 
                represent, in the aggregate, less than 10 percent of 
                the aggregate total risk-weighted assets of all insured 
                depository institutions controlled by the holding 
                company.
            ``(3) Special rule relating to the requirement for 
        community investment.--Insured depository institutions acquired 
        during the 12-month period preceding the date of the 
        transaction may be excluded for purposes of paragraph (1)(B) if 
        the bank holding company has developed a plan to restore the 
        performance of the institution to at least a `satisfactory' 
        rating under the Community Reinvestment Act of 1977 which is 
        acceptable to the appropriate Federal banking agency.
            ``(4) Adjustment of percentages.--The Board may by 
        regulation adjust the percentages and the manner in which the 
        percentages of insured depository institutions are calculated 
        under subparagraph (A)(v)(I) or (D) of paragraph (1) or 
        paragraph (2)(B) if the Board determines that such adjustment 
        is consistent with safety and soundness and the purposes of 
        this Act.
            ``(5) Advice of attorney general.--The Attorney General 
        shall advise the Board during the period referred to in 
        paragraph (1)(H) in writing if any competitive concerns exist 
        with respect to the transaction.
            ``(6) Waiver of postapproval waiting period.--If the 
        Attorney General advises the Board that no competitive concerns 
        exist with respect to the transaction, the provisions of 
        section 11(b) relating to a postapproval waiting shall not 
        apply with respect to such transaction.''.

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

    (a) Bank Merger Act.--Section 18(c) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the 
following new paragraph:
            ``(12) The provisions of this subsection shall not apply to 
        any merger, consolidation, acquisition of assets or assumption 
        of liabilities involving only insured depository institutions 
        that are subsidiaries of the same depository institution 
        holding company if--
                    ``(A) the responsible agency would not be 
                prohibited from approving the transaction under section 
                44, if applicable;
                    ``(B) the acquiring, assuming, or resulting 
                institution complies with all applicable provisions of 
                section 44, if any, as if the merger, consolidation, or 
                acquisition were approved under this subsection;
                    ``(C) either--
                            ``(i) the insured depository institutions 
                        involved in the transaction--
                                    ``(I) have received a rating of 
                                `satisfactory' or better in meeting 
                                community credit needs pursuant to 
                                section 807 of the Community 
                                Reinvestment Act of 1977 during the 
                                most recent examination of such 
                                institutions; and
                                    ``(II) publish notice of the 
                                proposed transaction in a newspaper of 
                                general circulation in the affected 
                                communities at least 30 days before 
                                consummation of the transaction; or
                            ``(ii) the insured depository institutions 
                        have received a rating of `satisfactory' or 
                        better in the most recent evaluation of 
                        compliance with strategic plans which have 
                        been--
                                    ``(I) submitted by the institutions 
                                to the appropriate Federal banking 
                                agency in accordance with regulations 
                                prescribed under the Community 
                                Reinvestment Act of 1977; and
                                    ``(II) approved by the agency;
                    ``(D) the acquiring, assuming, or resulting 
                institution provides written notification of the 
                transaction to the appropriate Federal banking agency 
                for the institution at least 20 days prior to 
                consummation of the transaction; and
                    ``(E) after receiving such notice, the agency does 
                not require the institution to submit an application 
                with respect to such transaction and so notifies the 
                institution.''.
    (b) National Bank Consolidation and Merger Act.--
            (1) Consolidations.--Section 2 of the National Bank 
        Consolidation and Merger Act (12 U.S.C. 215) is amended--
                    (A) in subsection (a), by adding at the end the 
                following new sentence:
``No approval by the Comptroller of the Currency is required under this 
subsection for a transaction which involves the consolidation of banks 
that, at the time of the consolidation, are all subsidiaries (as 
defined in section 3 of the Federal Deposit Insurance Act) of the same 
company.''; and
                    (B) in subsection (b)--
                            (i) by striking ``, and thereafter the 
                        consolidation shall be approved by the 
                        Comptroller''; and
                            (ii) by striking ``when such consolidation 
                        is approved by the Comptroller''.
            (2) Mergers.--Section 3 of the National Bank Consolidation 
        and Merger Act (12 U.S.C. 215a) is amended--
                    (A) in subsection (a), by adding at the end the 
                following new sentence:
``No approval by the Comptroller of the Currency is required under this 
subsection for a transaction which involves the merger of banks that, 
at the time of the merger, are all subsidiaries (as defined in section 
3 of the Federal Deposit Insurance Act) of the same company.''; and
                    (B) in subsection (b)--
                            (i) by striking ``, and thereafter the 
                        merger shall be approved by the Comptroller''; 
                        and
                            (ii) by striking ``when such merger shall 
                        be approved by the Comptroller''.

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

    (a) In General.--Section 5(d)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1815(d)(3)) is amended--
            (1) in subparagraph (A), by striking ``with the prior 
        written approval of the responsible agency under section 
        18(c)(2)'';
            (2) in subparagraph (E)--
                    (A) by striking clause (iv) and inserting the 
                following new clause:
                            ``(iv) A transaction shall not be 
                        authorized under this paragraph unless the 
                        acquiring, assuming, or resulting depository 
                        institution will meet all applicable capital 
                        requirements upon consummation of the 
                        transaction.'';
                    (B) by striking clauses (i) and (ii); and
                    (C) by redesignating clauses (iii) and (iv) (as 
                amended by subparagraph (A) of this paragraph) as 
                clauses (i) and (ii), respectively; and
            (3) by striking subparagraph (G) and redesignating the 
        subsequent subparagraphs accordingly.
    (b) Technical and Conforming Amendment.--Section 5156A(b)(1) of the 
Revised Statutes of the United States (12 U.S.C. 215c(b)(1)) is amended 
by striking ``section 5(d)(3) of the Federal Deposit Insurance Act 
or''.
    (c) Clerical Amendment.--The heading for section 5(d)(3)(E) of the 
Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)(E)) is amended by 
striking ``for approval, generally''.

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

    (a) Exemption for Bank Holding Companies.--Section 10 of the Home 
Owners' Loan Act (12 U.S.C. 1467a) is amended by adding at the end the 
following new subsection:
    ``(t) Exemption for Bank Holding Companies.--This section shall not 
apply to a bank holding company that is subject to the Bank Holding 
Company Act of 1956 or any company controlled by such bank holding 
company (other than a savings association).''.
    (b) Definition of Savings and Loan Holding Company.--Section 
10(a)(1)(D) of the Home Owners' Loan Act (12 U.S.C. 1467a(a)(1)(D)) is 
amended to read as follows:
                    ``(D) Savings and loan holding company.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `savings and loan holding 
                        company' means any company which directly or 
                        indirectly controls a savings association or 
                        controls any other company which is a savings 
                        and loan holding company.
                            ``(ii) Exception for bank holding 
                        company.--The term `savings and loan holding 
                        company' does not include any company which is 
                        registered under, and subject to, the 
                        provisions of the Bank Holding Company Act of 
                        1956, or any company directly or indirectly 
                        controlled by such company.''.
    (c) Amendments to the Bank Holding Company Act of 1956.--Section 
4(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(i)) is 
amended by adding at the end the following new paragraphs:
            ``(4) Solicitation of views.--
                    ``(A) Notice to director.--Upon receiving any 
                application or notice by a bank holding company to 
                acquire directly or indirectly a savings association 
                under subsection (c)(8), the Board shall solicit the 
                Director's comments and recommendations with respect to 
                such acquisition.
                    ``(B) Comment period.--The comments and views of 
                the Director under subparagraph (A) with respect to any 
                acquisition subject to such subparagraph shall be 
                transmitted to the Board within 30 days of the receipt 
                by the Director of the notice relating to such 
                acquisition (or such shorter period as the Board may 
                specify if the Board advises the Director that an 
                emergency exists which requires expeditious action).
            ``(5) Examination.--
                    ``(A) Scope.--The Board shall consult with the 
                Director, as appropriate, in establishing the scope of 
                an examination by the Board of a bank holding company 
                that controls directly or indirectly a savings 
                association.
                    ``(B) Access to inspection reports.--Upon the 
                request of the Director, the Board shall furnish the 
                Director with a copy of any inspection report, 
                additional examination materials, or supervisory 
                information relating to any bank holding company which 
                directly or indirectly controls a savings association.
            ``(6)  Coordination of enforcement efforts.--The Board and 
        the Director shall cooperate in any enforcement action against 
        any bank holding company which controls a savings association, 
        if the relevant conduct involves such association.
            ``(7) Director defined.--For purposes of this section, the 
        term `Director' means the Director of the Office of Thrift 
        Supervision.''.
    (d) Alternative Test.--
            (1) In general.--Section 10(m) of the Home Owners' Loan Act 
        (12 U.S.C. 1467a(m)) is amended--
            (1) in paragraph (1), by striking ``(2) and (7)'' and 
        inserting ``(2), (7), and (8)''; and
            (2) by adding at the end the following new paragraph:
            ``(8) Alternative test.--Any savings association which 
        meets the requirements set forth in section 7701(a)(19)(C) of 
        the Internal Revenue Code of 1986 shall be deemed to be a 
        qualified thrift lender.''.
            (2) Conforming amendments.--Section 5(r) of the Home 
        Owners' Loan Act (12 U.S.C. 1464(r)) is amended--
                    (A) in the 1st sentence of paragraph (1), by 
                inserting ``, qualifies as a qualified thrift lender 
                under section 10(m),'' after ``Internal Revenue Code of 
                1986'';
                    (B) in the second sentence of paragraph (1), by 
                inserting ``or as a qualified thrift lender under 
                section 10(m)'' before the period;
                    (C) by striking subparagraph (C) of paragraph (2) 
                and inserting the following new subparagraph:
                    ``(C) the law of the State in which the branch is 
                or is to be located would permit establishment of the 
                branch were the association an institution of the 
                savings association or savings bank type chartered by 
                the State in which the home office of such institution 
                is located; or''.

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

    Section 2(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(g)) is amended--
            (1) by striking paragraph (3);
            (2) by inserting ``and'' after the semicolon at the end of 
        paragraph (1); and
            (3) by striking ``; and'' at the end of paragraph (2) and 
        inserting a period.

SEC. 207. ELIMINATE UNNECESSARY BRANCH APPLICATIONS.

    (a) National Bank Branch Applications.--Section 5155(i) of the 
Revised Statutes (12 U.S.C. 36(i)) is amended--
            (1) by striking ``(i) No branch'' and inserting ``(i) 
        Relocation.--
            ``(1) Approval required.--Except as provided in paragraph 
        (2), no branch''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) No approval required for certain branches.--
        Notwithstanding this subsection or subsection (b) or (c), the 
        consent and approval of the Comptroller of the Currency shall 
        not be required for a national bank to establish and operate, 
        or to retain and operate, a branch or seasonal agency if--
                    ``(A) the bank is well capitalized (as defined in 
                section 38 of the Federal Deposit Insurance Act and 
                regulations prescribed by the Comptroller of the 
                Currency under such section);
                    ``(B) the bank received a composite CAMEL rating of 
                `1' or `2' under the Uniform Financial Institutions 
                Rating System (or an equivalent rating under a 
                comparable rating system) as of its most recent 
                examination;
                    ``(C) either--
                            ``(i) the bank--
                                    ``(I) has received a rating of 
                                `satisfactory' or better in meeting 
                                community credit needs pursuant to 
                                section 807 of the Community 
                                Reinvestment Act of 1977 during the 
                                most recent examination of such bank; 
                                and
                                    ``(II) publishes notice of the 
                                bank's intention to establish and 
                                operate, or retain and operate, a 
                                branch or seasonal agency at the 
                                proposed location in a newspaper of 
                                general circulation in the affected 
                                communities at least 30 days before 
                                consummation of the transaction; or
                            ``(ii) the bank has received a rating of 
                        `satisfactory' or better in the most recent 
                        evaluation of compliance with a strategic plan 
                        which has been--
                                    ``(I) submitted by the bank to the 
                                Comptroller of the Currency in 
                                accordance with regulations prescribed 
                                under the Community Reinvestment Act of 
                                1977; and
                                    ``(II) approved by the Comptroller 
                                of the Currency; and
                    ``(D) the Comptroller of the Currency is otherwise 
                authorized to grant approval under this section to such 
                bank to establish and operate, or to retain and 
                operate, a branch or seasonal agency at the proposed 
                location.
            ``(3) Certain branches deemed to have approved 
        applications.--A branch or seasonal agency established by a 
        national bank under paragraph (2) shall be deemed to have been 
        established and operated pursuant to an application approved 
        under this section.''.
    (b) State Member Bank Branch Applications.--The third undesignated 
paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is 
amended by adding at the end the following: ``Notwithstanding the 
preceding 2 sentences, the approval of the Board shall not be required 
for a State member bank to establish and operate a branch or seasonal 
agency if--
                    ``(A) the State member bank is well-capitalized (as 
                defined in section 38 of the Federal Deposit Insurance 
                Act and regulations prescribed by the Board under such 
                section);
                    ``(B) the State member bank received a composite 
                CAMEL rating of `1' or `2' under the Uniform Financial 
                Institutions Rating System (or an equivalent rating 
                under a comparable rating system);
                    ``(C) either--
                            ``(i) the State member bank--
                                    ``(I) has received a rating of 
                                `satisfactory' or better in meeting 
                                community credit needs pursuant to 
                                section 807 of the Community 
                                Reinvestment Act of 1977 during the 
                                most recent examinations of such bank; 
                                and
                                    ``(II) publishes notice of the 
                                bank's intention to establish and 
                                operate, or retain and operate, a 
                                branch or seasonal agency at the 
                                proposed location in a newspaper of 
                                general circulation in the affected 
                                communities at least 30 days before 
                                consummation of the transaction; or
                            ``(ii) the State member bank has received a 
                        rating of `satisfactory' or better in the most 
                        recent evaluation of compliance with a 
                        strategic plan which has been--
                                    ``(I) submitted by the bank to the 
                                Board in accordance with regulations 
                                prescribed under the Community 
                                Reinvestment Act of 1977; and
                                    ``(II) approved by the Board; and
                    ``(D) the Board is otherwise authorized to grant 
                approval under this section to such State member bank 
                to establish and operate a branch or seasonal agency at 
                the proposed location.
A branch or seasonal agency established by a State member bank under 
the previous sentence shall be deemed to have been established and 
operated pursuant to an application approved under this section.''.
    (c) State Nonmember Bank Branch Applications.--Section 18(d) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by adding 
at the end the following new paragraphs:
            ``(5) Application exemption for certain banks.--
        Notwithstanding paragraph (1), the consent of the Corporation 
        shall not be required for a State nonmember insured bank to 
        establish and operate any domestic branch if--
                    ``(A) the bank is well-capitalized (as defined in 
                section 38 and regulations prescribed by the 
                Corporation under such section);
                    ``(B) the bank received a composite CAMEL rating of 
                `1' or `2' under the Uniform Financial Institutions 
                Rating System (or an equivalent rating under a 
                comparable rating system) as of its most recent 
                examination;
                    ``(C) either--
                            ``(i) the bank--
                                    ``(I) has received a rating of 
                                `satisfactory' or better in meeting 
                                community credit needs pursuant to 
                                section 807 of the Community 
                                Reinvestment Act of 1977 during the 
                                most recent examinations of such bank; 
                                and
                                    ``(II) publishes notice of the 
                                bank's intention to establish and 
                                operate, or retain and operate, a 
                                branch or seasonal agency at the 
                                proposed location in a newspaper of 
                                general circulation in the affected 
                                communities at least 30 days before 
                                consummation of the transaction; or
                            ``(ii) the bank has received a rating of 
                        `satisfactory' or better in the most recent 
                        evaluation of compliance with a strategic plan 
                        which has been--
                                    ``(I) submitted by the bank to the 
                                Corporation in accordance with 
                                regulations prescribed under the 
                                Community Reinvestment Act of 1977; and
                                    ``(II) approved by the Corporation; 
                                and
                    ``(D) the Corporation is otherwise authorized to 
                give consent under this section to such bank to 
                establish and operate a domestic branch at the proposed 
                location.
            ``(6) Approval granted.--A branch established by a State 
        member bank under paragraph (5) shall be deemed to have been 
        established and operated pursuant to an application approved 
        under this section.''.

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

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

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

    Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is amended 
by inserting before the period in that section the following: ``or, in 
the case of a bank which received a composite CAMEL rating of `1' or 
`2' under the Uniform Financial Institutions Rating System (or an 
equivalent rating under a comparable rating system) as of its most 
recent examination and, both before and immediately following the 
investment or loan, is well capitalized (as defined under section 38 of 
the Federal Deposit Insurance Act), the amount which is equal to 150 
percent of the capital stock and surplus of such bank''.

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

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

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

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

SEC. 212. DISPOSITION OF FORECLOSED ASSETS.

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

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

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

   Subtitle B--Streamlining of Government Regulations; Miscellaneous 
                               Provisions

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

    Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended--
            (1) by striking subsection (h); and
            (2) by redesignating subsections (i) (as amended by section 
        207(a) of this Act), (j) (as amended by section 208(a) of this 
        Act), (k), and (l) as subsections (h), (i), (j), and (k), 
        respectively.

SEC. 222. BRANCH CLOSURES.

    (a) In General.--Section 42 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831r-1) is amended by adding at the end the following new 
subsection:
    ``(e) Scope of Application.--
            ``(1) In general.--This section shall not apply with 
        respect to--
                    ``(A) an automated teller machine;
                    ``(B) a branch which--
                            ``(i) has been acquired through merger, 
                        consolidation, purchase, assumption, or other 
                        method; and
                            ``(ii) is located--
                                    ``(I) within 2.5 miles of another 
                                branch of the acquiring institution; or
                                    ``(II) within a neighborhood 
                                currently being served by another 
                                branch of the acquiring institution,
                if such other branch of the acquiring institution is 
                expected to continue to provide banking services to 
                substantially all of the customers currently served by 
                the branch acquired;
                    ``(C) a branch which is closing and reopening at a 
                location which is--
                            ``(i) within 2.5 miles of the location of 
                        the branch being closed; or
                            ``(ii) within the same neighborhood as the 
                        branch being closed,
                if the branch at the new location is expected to 
                continue to provide banking services to substantially 
                all of the customers served by the branch at the former 
                location;
                    ``(D) a branch that is closed in connection with--
                            ``(i) an emergency acquisition under--
                                    ``(I) section 11(n); or
                                    ``(II) subsections (f) or (k) of 
                                section 13; or
                            ``(ii) any assistance provided by the 
                        Corporation under section 13(c); and
                    ``(E) any other branch closure whose exemption from 
                the notice requirements of this section would not 
                produce a result inconsistent with the purposes of this 
                section.
            ``(2) Regulations.--The appropriate Federal banking agency 
        shall, by regulation, determine the circumstances under which 
        any exemption under paragraph(1)(E) may be granted.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply as if such amendment had been included in section 42 of the 
Federal Deposit Insurance Act as of the date of the enactment of the 
Federal Deposit Insurance Corporation Improvement Act of 1991.

SEC. 223. AMENDMENTS TO THE DEPOSITORY INSTITUTIONS MANAGEMENT 
              INTERLOCKS ACT.

    (a) Dual Service in Same Area, Town, or Village.--Section 203 of 
the Depository Institution Management Interlocks Act (12 U.S.C. 3202) 
is amended--
            (1) by inserting ``(a) Prohibitions.--'' before ``A 
        management official''; and
            (2) by adding after subsection (a) the following new 
        subsection:
    ``(b) Small Market Share Exemption.--
            ``(1) In general.--This section shall not be construed as 
        prohibiting a management official of a depository institution 
        or depository holding company from serving as a management 
        official of another depository institution or depository 
        holding company not affiliated with such institution or holding 
        company if the depository institutions or depository holding 
        companies with which the management official serves hold, 
        together with all the affiliates of such institutions or 
        holding companies, in the aggregate no more that 20 percent of 
        the deposits in each relevant geographic banking market where 
        offices of the depository institutions or depository holding 
        companies or their affiliates are located.
            ``(2) Relevant geographic banking market defined.--For 
        purposes of paragraph (1), the term `relevant geographic 
        banking market' means--
                    ``(A) the area defined by the boundaries identified 
                by the Board of Governors of the Federal Reserve 
                System;
                    ``(B) if the Board has not defined such boundaries, 
                the area defined by the boundaries of the Ranally 
                Metropolitan Area in which the office of the depository 
                institution or the depository institution holding 
                company is located; and
                    ``(C) if the office of such institution or company 
                is not located within a Ranally Metropolitan Area, the 
                area defined by the county (or an equivalent area of 
                general local government) in which such office is 
                located.''.
    (b) Dual Service Among Larger Organizations.--Section 204 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3203) is 
amended to read as follows:

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

    ``(a) In General.--If a depository institution, depository 
institution holding company, or depository institution affiliate of any 
such institution or company has total assets exceeding $2,500,000,000, 
a management official of such institution, company, or affiliate may 
not serve as a management official of any other depository institution, 
depository institution holding company, or depository institution 
affiliate of any such institution or company which--
            ``(1) is not an affiliate of the institution, company, or 
        affiliate of which such person is a management official; and
            ``(2) has total assets exceeding $1,500,000,000.
    ``(b) CPI Adjustments.--The dollar amounts in this section shall be 
adjusted annually after December 31, 1994, by the annual percentage 
increase in the Consumer Price Index for Urban Wage Earners and 
Clerical Workers published by the Bureau of Labor Statistics.''.
    (c) Extension of Grandfather Exemption.--Section 206 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3205) is 
amended--
            (1) in subsection (a), by striking ``for a period of, 
        subject to the requirements of subsection (c), 20 years after 
        the date of enactment of this title'';
            (2) in subsection (b), by striking the 2d sentence; and
            (3) by striking subsection (c).
    (d) Rules or Regulations.--Section 209 of the Depository 
Institution Management Interlocks Act (12 U.S.C. 3207) is amended--
            (1) by striking ``(a) In General.--Rules'' and inserting 
        ``Rules'';
            (2) by inserting ``, including rules or regulations which 
        permit service by a management official which would otherwise 
        be prohibited by section 203 or section 204,'' after ``title''; 
        and
            (3) by striking subsections (b) and (c).

SEC. 224. ACCELERATION OF REPAYMENT TO TREASURY.

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

SEC. 225. CONSTRAINTS ON EMPLOYEE-WIDE BENEFIT PLANS AND HOME EQUITY 
              LOANS.

    (a) Amendments to Section 22(h) of the Federal Reserve Act.--
            (1) Employee-wide benefit plans.--Section 22(h)(2) of the 
        Federal Reserve Act (12 U.S.C. 375b(2)) is amended--
            (1) by redesignating subparagraphs (A) through (C) as 
        clauses (i) through (iii), respectively, and indenting the left 
        margins of such clauses appropriately;
            (2) by striking ``(2) Preferential terms prohibited.--'' 
        and inserting the following:
            ``(2) Preferential terms prohibited.--
                    ``(A) In general.--''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Exception.--No provision of this paragraph 
                shall be construed as prohibiting any extension of 
                credit made pursuant to a benefit or compensation 
                program--
                            ``(i) that is widely available to employees 
                        of the member bank; and
                            ``(ii) that does not give preference to any 
                        officer, director, or principal shareholder of 
                        the member bank, or to any related interest of 
                        such person, over other employees of the member 
                        bank.''.
            (2) Exception for extensions of credit to executive 
        officers and directors of nonbank affiliates.--Section 
        22(h)(8)(B) of the Federal Reserve Act (12 U.S.C. 375b(8)(B)) 
        is amended to read as follows:
                    ``(B) Exception.--The Board may, by regulation, 
                make exceptions to subparagraph (A) for an executive 
                officer or director of a subsidiary of a company that 
                controls the member bank if--
                            ``(i) the executive officer or director 
                        does not have authority to participate, and 
                        does not participate, in major policymaking 
                        functions of the member bank; and
                            ``(ii) the assets of such subsidiary do not 
                        exceed 10 percent of the consolidated assets of 
                        a company that controls the member bank and 
                        such subsidiary (and is not controlled by any 
                        other company).''.
            (3) Recordkeeping requirements.--Section 22(h)(10) of the 
        Federal Reserve Act (12 U.S.C. 375b(10)) is amended by adding 
        at the end the following: ``The Board shall specify by 
        regulation the recordkeeping required of member banks to ensure 
        compliance with this section.''.
    (b) Unnecessary Reporting Requirements.--Section 22(g) of the 
Federal Reserve Act (12 U.S.C. 375a) is amended--
            (1) by striking paragraph (6);
            (2) by redesignating paragraphs (7), (8), (9), and (10) as 
        paragraphs (6), (7), (8), and (9), respectively; and
            (3) in paragraph (8) (as so redesignated by paragraph (1) 
        of this subsection)--
                    (A) by striking ``include with (but not as part of) 
                each report of condition and copy thereof filed under 
                section 7(a)(3) of the Federal Deposit Insurance Act'' 
                and inserting ``submit a semiannual''; and
                    (B) by striking ``previous report of condition'' 
                and inserting ``previous semiannual report''.
    (c) Amendments Relating to Loans to Executive Officers.--Section 
22(g) of the Federal Reserve Act (12 U.S.C. 375a) (as amended by 
subsection (a) of this section) is amended--
            (1) in paragraph (1)(D), by striking ``of any one of the 
        three categories respectively referred to in paragraphs (2), 
        (3), and (4)'' and inserting ``of any category referred to in 
        paragraph (2), (3), (4), (5), or (6)'';
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (6) and (7), respectively;
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Home equity lines of credit.--A member bank may make 
        a revolving open-end extension of credit to any executive 
        officer of the bank if the credit--
                    ``(A) does not exceed $100,000; and
                    ``(B) is secured by a dwelling that is owned by 
                such officer and used by the officer as a residence.
            ``(5) Loans secured by marketable assets.--A member bank 
        may extend credit to any executive officer of the bank if the 
        credit is secured by readily marketable assets with a fair 
        market value of not less than the amount which is equal to 200 
        percent of any credit so extended.''; and
            (4) in paragraph (7) (as so redesignated by paragraph (2) 
        of this subsection) by striking ``(4)'' each place such term 
        appears and inserting ``(6)''.

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

    (a) Small Bank Size Discretion.--Section 10(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)) is amended--
            (1) by redesignating paragraph (9) as paragraph (10);
            (2) by redesignating the second of the 2 paragraphs 
        designated as paragraph (8) as paragraph (9); and
            (3) in paragraph (9) (as so redesignated), by striking 
        ``$175,000,000'' and inserting ``$250,000,000''.
    (b) Inflation Adjustment.--Section 10(d) of the Federal Deposit 
Insurance Act (12 U.S.C. 1820(d)) is amended by inserting after 
paragraph (10) (as so redesignated in subsection (a)(1) of this 
section) the following new paragraph:
            ``(11) Annual cpi adjustment.--The dollar amount in this 
        section shall be adjusted annually after December 31, 1994, by 
        the annual percentage increase in the Consumer Price Index for 
        Urban Wage Earners and Clerical Workers published by the Bureau 
        of Labor Statistics.''.
    (c) Coordinated Federal and State Examinations.--The Federal 
banking agencies (as defined in section 3 of the Federal Deposit 
Insurance Act) shall submit semiannual reports to the Congress on the 
progress made by such agencies in implementing the requirements of 
section 10(d)(6) of the Federal Deposit Insurance Act until such 
agencies submit a final report that--
            (1) the examination system provided for in such section is 
        in place; and
            (2) such system provides for full coordination of 
        examinations of State depository institutions with State bank 
        supervisors.

SEC. 227. COST REIMBURSEMENT.

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

SEC. 228. IDENTIFICATION OF FOREIGN NONBANK FINANCIAL INSTITUTION 
              CUSTOMERS.

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

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

SEC. 229. PAPERWORK REDUCTION REVIEW.

    Not later than 180 days after the date of enactment of this Act, 
each appropriate Federal banking agency and the National Credit Union 
Administration, in consultation with insured depository institutions, 
insured credit unions, and other interested parties, shall--
            (1) review the extent to which current regulations require 
        insured depository institutions and insured credit unions to 
        produce unnecessary internal written policies; and
            (2) eliminate such requirements, where appropriate.
For purposes of this section, the terms ``insured depository 
institution'' and ``appropriate Federal banking agency'' have the same 
meanings as in section 3 of the Federal Deposit Insurance Act and the 
term ``insured credit union'' has the same meaning as in section 101(7) 
of the Federal Credit Union Act.

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

    Before the end of the 1-year period beginning on the date of the 
enactment of this Act, the Secretary of the Treasury shall revise the 
regulation under section 15C of the Securities Exchange Act of 1934 
relating to the obligations of financial institutions and of brokers 
and dealer registered under such Act holding custody of securities 
subject to a repurchase agreement to confirm, daily and in writing, the 
securities that are subject to such repurchase agreement. Such revision 
shall permit the counterparty to such agreement to waive in writing the 
right to obtain such daily written confirmation if the counterparty has 
received a clear and conspicuous disclosure before entering into any 
side agreement, in a form prescribed by the Secretary, that adequately 
informs the counterparty of the benefits of receiving such daily 
written confirmations.

SEC. 231. REQUIRED REGULATORY REVIEW OF REGULATIONS.

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

SEC. 232. COUNTRY RISK REQUIREMENTS.

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

SEC. 233. AUDIT COSTS.

    (a) In General.--
            (1) Auditor attestations.--Section 36 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831m) is amended--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsections (f), (g), (h), 
                (i), and (j) as subsections (e), (f), (g), (h), and 
                (i), respectively.
            (2) Public availability.--Section 36(a)(3) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by 
        inserting at the end the following new sentence: 
        ``Notwithstanding the preceding sentence, the Corporation and 
        the appropriate Federal banking agencies may designate certain 
        information as privileged and confidential and not available to 
        the public.''.
    (b) Exemption for Well-Capitalized and Well-Managed Insured 
Depository Institutions.--Section 36 of the Federal Deposit Insurance 
Act (12 U.S.C. 1831m) (as amended by subsection (a) of this section) is 
amended by adding at the end the following new subsection:
    ``(j) Exemption for Well-Capitalized and Well-Managed Insured 
Depository Institutions.--No provision of this section other than 
subsections (d) and (f) shall apply with respect to any insured 
depository institution which has a CAMEL rating of 1 (or an equivalent 
rating under a equivalent rating system).''.
    (c) Independent Audit Committees.--Section 36(f)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) (as so redesignated by 
subsection (a)(1)(B) of this section) is amended--
            (1) in subparagraph (A), by striking ``entirely made up of 
        outside directors who are independent of the management of the 
        institution, and who'' and inserting ``not less than \1/2\ of 
        the members of which shall be outside directors and the members 
        of which''; and
            (2) by adding at the end the following new subparagraph:
                    ``(D) Exemption authority.--
                            ``(i) In general.--An appropriate Federal 
                        banking agency may, by order or regulation, 
                        permit an insured depository institution to 
                        maintain an independent audit committee less 
                        than \1/2\ of the members of which are outside 
                        directors, if the agency determines that the 
                        institution has encountered hardships in 
                        recruiting and retaining a sufficient number of 
                        outside directors to serve on such committee.
                            ``(ii) Factors to be considered.--In 
                        determining whether an insured depository 
                        institution has encountered the hardships 
                        referred to in clause (i), the appropriate 
                        Federal banking agency shall consider factors 
                        such as the size of the institution and the 
                        extent to which the institution has made a good 
                        faith effort to elect or name additional 
                        competent outside directors to the board of 
                        directors of the institution who may serve on 
                        the independent audit committee.''.

SEC. 234. STANDARDS FOR DIRECTOR AND OFFICER LIABILITY.

    Section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(u)) is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) of 
        paragraph (4) as clauses (i), (ii), and (iii), respectively;
            (2) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D), respectively, and 
        indenting the left margin of such subparagraphs appropriately;
            (3) in subparagraph (A) (as so redesignated), by inserting 
        ``(other than an outside director)'' after ``director'';
            (4) in subparagraph (C) (as so redesignated), by inserting 
        ``(other than an outside director)'' after ``any other 
        person'';
            (5) by striking ``term `institution-affiliated party' 
        means'' and inserting ``term `institution-affiliated party'--
            ``(1) means--'';
            (6) by striking the period at the end of subparagraph (D) 
        of paragraph (1) (as so redesignated) and inserting ``; and''; 
        and
            (7) by adding at the end the following new paragraph:
            ``(2) includes any outside director which the appropriate 
        Federal banking agency determines, on the basis of such factors 
        as the agency (in the agency's sole discretion) determines to 
        be appropriate, shall be treated as an institution-affiliated 
        party for purposes of section 8, after taking into 
        consideration that an outside director may have a different 
        level of knowledge of the management and operation of an 
        insured depository institution than a director who is not an 
        outside director.''.

SEC. 235. FOREIGN BANK APPLICATIONS.

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

SEC. 236. DUPLICATE EXAMINATION OF FOREIGN BANKS.

    Section 7(c)(1) of the International Banking Act of 1978 (12 U.S.C. 
3105(c)(1)) is amended--
            (1) by adding after clause (ii) of subparagraph (B) the 
        following new clause:
                            ``(iii) Avoidance of duplication.--In 
                        exercising its authority under this paragraph, 
                        the Board shall take all reasonable measures to 
                        reduce burden and avoid unnecessary duplication 
                        of examinations.'';
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) On-site examination.--Each Federal branch or 
                agency, and each State branch or agency, of a foreign 
                bank shall be subject to on-site examination by a 
                Federal banking agency or State bank supervisor as 
                frequently as would a national bank or State bank, 
                respectively, by its appropriate Federal banking 
                agency.''; and
            (3) by amending subparagraph (D) to read as follows:
                    ``(D) Cost of examinations.--The cost of any 
                examination undertaken pursuant to subparagraph (A) 
                shall be assessed against and collected from the 
                foreign bank or the foreign company that controls the 
                foreign bank, as the case may be, but only to the same 
                extent that fees are collected by the Board for 
                examination of any State member insured bank.''.

SEC. 237. HIGH-COST MORTGAGES.

    (a) Federal Reserve Survey and Study.--
            (1) In general.--During the period beginning 180 days after 
        the date of enactment of this Act and ending 2 years after that 
        date of enactment, the Board of Governors of the Federal 
        Reserve System shall conduct an empirical survey and study and 
        submit to the Congress a report, including recommendations for 
        the enactment or repeal of any appropriate legislation, 
        regarding the national market for mortgages covered under 
        section 103(aa) of the Truth in Lending Act.
            (2) Competition and credit availability.--The survey shall 
        seek to ascertain whether competition in the market for 
        mortgages covered under section 103(aa) of the Truth in Lending 
        Act has been enhanced or impaired by the Home Ownership and 
        Equity Protection Act of 1994, as well as an assessment of the 
        impact of that Act on lenders, consumers, and the secondary 
        mortgage market for refinanced loans and home equity loans, 
        particularly in the area of credit availability.
            (3) Abusive and fraudulent practices.--The survey, which 
        shall include consumers and state regulators, shall also 
        identify both abusive and fraudulent practices in the market 
        for mortgages covered under section 103(aa) of the Truth in 
        Lending Act, as well as the type of entities and individuals 
        actually responsible for these practices.
    (b) Regulatory Tolerances for de Minimus Changes.--Section 
129(b)(2) of the Truth in Lending Act (15 U.S.C. 1639(b)(2)) is amended 
by adding at the end the following new subparagraph:
                    ``(C) De minimus changes.--A creditor shall not be 
                required under this section to make any new disclosure 
                under this section as a result of--
                            ``(i) any change in the regular payment 
                        amount of 2 percent or less from the initially 
                        disclosed regular payment amount; or
                            ``(ii) any change in 3d party fees or 
                        disbursements which are made to pay off 
                        creditors which are financed under the 
                        transaction.''.
    (c) Time of Disclosures.--Section 129(b) of the Truth in Lending 
Act (15 U.S.C. 1639(b)) is amended by adding at the end the following 
new paragraph:
            ``(4) Time of disclosures for certain transactions.--
        Notwithstanding paragraph (1), in the case of a transaction 
        which is covered under section 103(aa) and subject to section 
        125, the disclosures required by this section may be made by 
        the creditor at any time before the consummation of the 
transaction.''.
    (d) Removal of Restriction on Regulations.--The 2d sentence of 
section 105(a) of the Truth in Lending Act (15 U.S.C. 1604(a)) is 
amended by striking ``Except in the case of a mortgage referred to in 
section 103(aa), these'' and inserting ``The''.

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

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

SEC. 239. REPEAL OF CALL REPORT ATTESTATION REQUIREMENT.

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

SEC. 240. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE AS LIMITED 
              LIABILITY PARTNERSHIPS.

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

SEC. 241. BANK INVESTMENTS IN EDGE ACT AND AGREEMENT CORPORATIONS.

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

SEC. 242. REPORT ON THE RECONCILIATION OF DIFFERENCES BETWEEN 
              REGULATORY ACCOUNTING PRINCIPLES AND GENERALLY ACCEPTED 
              ACCOUNTING PRINCIPLES.

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

SEC. 243. WAIVERS AUTHORIZED FOR RESIDENCY REQUIREMENT FOR NATIONAL 
              BANK DIRECTORS.

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

SEC. 244. CONSULTATION AMONG EXAMINERS.

    (a) In General.--Section 10 of the Federal Deposit Insurance Act 
(12 U.S.C. 1820) is amended by adding at the end the following new 
subsection:
    ``(j) Consultation Among Examiners.--
            ``(1) In general.--Each appropriate Federal banking agency 
        shall take such action as may be necessary to ensure that 
        examiners employed by the agency--
                    ``(A) consult on examination activities with 
                respect to any depository institution; and
                    ``(B) achieve an agreement and resolve any 
                inconsistencies on the recommendations to be given to 
                such institution as a consequence of any examinations.
            ``(2) Examiner-in-charge.--Each agency shall consider 
        appointing an examiner-in-charge with respect to a depository 
        institution to ensure consultation on examination activities 
        among all of the agency's examiners involved in examinations of 
        such institution.''.
    (b) Coordinated and Unified Examination Flexibility.--Section 
10(d)(6)(B) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)(6)(B)) is amended by inserting ``or State bank supervisors'' 
after ``one of the Federal agencies''.

SEC. 245. ANTITYING EXEMPTIVE AUTHORITY.

    Section 5(q) of the Home Owners' Loan Act (12 U.S.C. 1464(q)) is 
amended by adding at the end the following new paragraph:
            ``(6) Exceptions.--The Director may, by regulation or 
        order, permit such exceptions to the prohibitions of this 
        subsection as the Director considers will not be contrary to 
        the purposes of this subsection and which conform to exceptions 
        granted by the Board of Governors of the Federal Reserve System 
        pursuant to section 106(b) of the Bank Holding Company Act 
        Amendments of 1970.''.

                      TITLE III--LENDER LIABILITY

SEC. 301. LENDER LIABILITY.

    (a) Participation in Management.--
            (1) In general.--It is the sense of Congress that a person 
        who holds indicia of ownership primarily to protect the 
        person's security interest in a vessel or facility should not 
        be considered to have participated in management, as that term 
        is used in section 101(20) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601(20)), unless the person--
                    (A) exercises decisionmaking control over the 
                borrower's environmental compliance such that the 
                person has undertaken responsibility for the hazardous 
                substance handling or disposal practices of the vessel 
                or facility; or
                    (B) exercises control at a level comparable to that 
                of a manager of the borrower's vessel or facility such 
                that the person has assumed or manifested 
                responsibility for the overall management of the vessel 
                or facility encompassing day-to-day decisionmaking over 
                either environmental compliance or over the 
                operational, as opposed to financial and 
                administrative, aspects of the vessel or facility.
            (2) Operational aspects defined.--In paragraph (1)(B), the 
        term ``operational aspects'' includes functions such as those 
        of a facility or plant manager, operations manager, chief 
        operating officer, or chief executive officer.
    (b) Exclusions.--It is further the sense of Congress that the term 
``participation in management'' as used in such section 101(20) should 
not include any of the following:
            (1) The mere capacity to influence, or ability to 
        influence, or the unexercised right to control vessel or 
        facility operations.
            (2) Any act of a security interest holder to require 
        another person to comply with applicable laws or to respond 
        lawfully to disposal of any hazardous substance.
            (3) Conducting an act or failing to act prior to the time 
        that a security interest is created in a vessel or facility.
            (4) Holding a security interest in a vessel or facility or 
        abandoning or releasing such a security interest.
            (5) 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.
            (6) Monitoring or enforcing the terms and conditions of the 
        extension of credit or security interest.
            (7) Monitoring or undertaking 1 or more inspections of the 
        vessel or facility.
            (8) Under section 107(d) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980, or under the 
        direction of an on-scene coordinator, conducting a response 
        action or other lawful means of addressing the release or 
        threatened release of a hazardous substance in connection with 
        the vessel or facility prior to, during, or upon the expiration 
        of the term of the extension of credit.
            (9) Providing financial or other advice or counseling in an 
        effort to mitigate, prevent, or cure default or diminution in 
        the value of the vessel or facility.
            (10) Restructuring, renegotiating, or otherwise agreeing to 
        alter the terms and conditions of the extension of credit or 
        security interest or exercising forbearance.
            (11) 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.
            (12) Holding legal or equitable title acquired by a 
        security interest holder through foreclosure or its equivalent 
        primarily to protect a security interest provided that the 
        holder undertakes to sell, re-lease, or otherwise divest the 
        property in a reasonably expeditious manner on commercially 
        reasonable terms, taking into account market conditions and 
        legal and regulatory requirements.
    (c) Security Interest.--It is further the sense of Congress that 
the term ``security interest'' as used in such section 101(20) should 
include rights under a mortgage, deed of trust, assignment, judgment, 
lien, pledge, security agreement, factoring agreement, lease, or any 
other right accruing to person to secure the repayment of money, the 
performance of a duty, or some other obligation.
    (d) Miscellaneous.--It is further the sense of the Congress that 
the potential Superfund liability of fiduciaries and the potential 
Resource Conservation and Recovery Act liability of lenders and 
fiduciaries should be addressed by the Congress.

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

SEC. 401. ANNUAL STUDY AND REPORT.

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

                   TITLE V--FINANCIAL SERVICE REFORM

            Subtitle A--Reform of Holding Company Procedures

SEC. 501. STREAMLINED EXAMINATION AND REPORTING REQUIREMENTS FOR ALL 
              FINANCIAL SERVICES HOLDING COMPANIES.

    Section 5(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1844(c)) is amended to read as follows--
    ``(c) Reports and Examinations.--
            ``(1) Purposes.--
                    ``(A) In general.--The purpose of this subsection 
                is to authorize the Board, through reports and 
                examinations, to gather information from a financial 
                services holding company and the subsidiaries of any 
                such holding company regarding the structure, 
                activities, and financial condition of the financial 
                services holding company and such subsidiaries so that 
                the Board can monitor risks within the holding company 
                system that could adversely affect any depository 
                institution subsidiary of the holding company and may 
                monitor and enforce compliance with this Act.
                    ``(B) Purpose not to impose additional burdens on 
                holding companies.--It is the intended purpose of this 
                subsection that the Board shall--
                            ``(i) exercise the Board's authority to 
                        collect information under this section in a 
                        manner that is the least burdensome to 
                        financial services holding companies and the 
                        subsidiaries of such companies; and
                            ``(ii) rely, to the fullest extent 
                        possible, on reports prepared for and 
                        examinations conducted by or for other Federal 
                        and State supervisors.
                    ``(C) Purpose to require carefully tailored 
                examinations.--It is the intended purpose of this 
                subsection that the Board shall tailor the focus and 
                scope of any examination under this section to a 
                financial services holding company or to any subsidiary 
                of such company which, because of financial conditions, 
                activities, operations of such subsidiary, the 
                transactions between such subsidiary and other 
                affiliates, or the size of any such subsidiary poses a 
                potential material risk to a depository institution 
                subsidiary of such holding company.
            ``(2) Reports.--
                    ``(A) In general.--The Board from time to time may 
                require any financial services holding company and any 
                subsidiary of such company to submit reports under oath 
                to keep the Board informed as to--
                            ``(i) the company's or the subsidiary's 
                        activities, financial condition, policies, 
                        systems for monitoring and controlling 
                        financial and operational risks, and 
                        transactions with depository institution 
                        subsidiaries of the holding company; and
                            ``(ii) the extent to which the company or 
                        subsidiary has complied with the provisions of 
                        this Act and regulations prescribed and orders 
                        issued under this Act.
                    ``(B) Use of existing reports.--
                            ``(i) In general.--The Board shall, to the 
                        fullest extent possible, accept reports in 
                        fulfillment of the Board's reporting 
                        requirements under this paragraph that a 
                        financial services holding company or any 
                        subsidiary of such company has been required to 
                        provide to other Federal and State supervisors 
                        or to appropriate self-regulatory 
                        organizations.
                            ``(ii) Availability.--A financial services 
                        holding company or a subsidiary of such company 
                        shall provide to the Board, at the request of 
                        the Board, a report referred to in clause (i).
            ``(3) Examinations.--
                    ``(A) Limited use of examination authority.--The 
                Board may make examinations of each financial services 
holding company and each subsidiary of such company in order to--
                            ``(i) inform the Board of the nature of the 
                        operations and financial condition of the 
                        financial services holding company and such 
                        subsidiaries;
                            ``(ii) inform the Board of the--
                                    ``(I) financial and operational 
                                risks within the financial services 
                                holding company system that may affect 
                                any depository institution owned by 
                                such holding company; and
                                    ``(II) the systems of the holding 
                                company and such subsidiaries for 
                                monitoring and controlling those risks; 
                                and
                            ``(iii) monitor compliance with the 
                        provisions of this Act and those governing 
                        transactions and relationships between any 
                        depository institution controlled by a 
                        financial services holding company and any of 
                        the company's other subsidiaries.
                    ``(B) Restricted focus of examinations.--The Board 
                shall, to the fullest extent possible, limit the focus 
                and scope of any examination of a financial services 
                holding company to--
                            ``(i) the holding company; and
                            ``(ii) to any subsidiary (other than a 
                        depository institution subsidiary) of the 
                        holding company which, because of the size, 
                        condition, or activities of the subsidiary, the 
                        nature or size of transactions between such 
                        subsidiary and any depository institution 
                        affiliate, or the centralization of functions 
                        within the holding company system, could have a 
                        materially adverse effect on the safety and 
                        soundness of any depository institution 
                        affiliate of the subsidiary or of the holding 
                        company.
                    ``(C) Deference to bank examinations.--The Board 
                shall, to the fullest extent possible, use the report 
                of examinations of depository institutions made by the 
                Comptroller of the Currency, the Federal Deposit 
                Insurance Corporation, the Office of Thrift Supervision 
                or the appropriate State depository institution 
                supervisory authority for the purposes of this section.
                    ``(D) Deference to other examinations.--The Board 
                shall, to the fullest extent possible, use the reports 
                of examination made of--
                            ``(i) any registered broker or dealer by or 
                        on behalf of the Securities Exchange 
                        Commission, and
                            ``(ii) any other subsidiary that the Board 
                        finds to be comprehensively supervised under 
                        relevant Federal or State law by a Federal or 
                        state agency or authority.
                    ``(E) Confidentiality of reported information.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, the Board shall not be 
                        compelled to disclose any information required 
                        to be reported under this paragraph, or any 
                        information supplied to the Board by any 
                        domestic or foreign regulatory agency, that 
                        relates to the financial or operational 
                        condition of any financial services holding 
                        company or any subsidiary of such company.
                            ``(ii) Compliance with requests for 
                        information.--No provision of this subparagraph 
                        shall be construed as authorizing the Board to 
                        withhold information from Congress, or 
                        preventing the Board from complying with a 
                        request for information from any other Federal 
                        department or agency for purposes within the 
                        scope of such department's or agency's 
                        jurisdiction, or from complying with an order 
                        of a court of competent jurisdiction in an 
                        action brought by the United States or the 
                        Board.
                            ``(iii) Coordination with other law.--For 
                        purposes of section 552 of title 5, United 
                        States Code, this subparagraph shall be 
                        considered to be a statute described in 
                        subsection (b)(3)(B) of such section.
                            ``(iv) Designation of confidential 
                        information.--In prescribing regulations to 
                        carry out the requirements of this subsection, 
                        the Board shall designate information described 
                        in or obtained pursuant to this paragraph as 
                        confidential information.
                    ``(F) Costs.--The cost of any examination conducted 
                by the Board under this section may be assessed 
                against, and made payable by, such holding company.''.

SEC. 502. HOLDING COMPANY SUPERVISION FOR FINANCIAL SERVICES HOLDING 
              COMPANIES ENGAGED PRIMARILY IN NONBANKING ACTIVITIES.

    Section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. 1844) 
is amended by adding at the end the following new subsection:
    ``(g) Reduced Supervision of Companies Controlling Principally 
Nondepository Institutions.--
            ``(1) Election.--
                    ``(A) In general.--Any financial services holding 
                company that qualifies under paragraph (2) may make an 
                election to be governed by the approval, capital, 
                reporting and examination requirements of paragraphs 
                (3), (4), (5) and (6) by--
                            ``(i) filing an application for such 
                        election with the Board; and
                            ``(ii) if applicable, providing a written 
                        guarantee to the Federal Deposit Insurance 
                        Corporation pursuant to paragraph (2).
                    ``(B) Effective period of election.--An election 
                under subparagraph (A) shall remain in effect--
                            ``(i) so long as the financial services 
                        holding company continues to qualify under 
                        paragraph (2); or
                            ``(ii) until the financial services holding 
                        company revokes the election.
            ``(2) Criteria for election.--A financial services holding 
        company may make an election under paragraph (1) if the company 
        meets all of the following criteria:
                    ``(A) Company principally controls nondepository 
                companies.--
                            ``(i) Financial services holding companies 
                        with depository institutions.--In the case of a 
                        financial services holding company, the 
                        consolidated total risk-weighted assets of all 
                        depository institutions and foreign banks (as 
                        defined in section 1(b)(7) of the International 
                        Banking Act of 1978) controlled by the 
                        financial services holding company--
                                    ``(I) constitute less than 10 
                                percent of the consolidated total risk-
                                weighted assets of such company; and
                                    ``(II) are less than 
                                $5,000,000,000.
                            ``(ii) Inflation adjustment.--The dollar 
                        limitation contained in clause (i)(II) shall be 
                        adjusted annually after December 31, 1996, by 
                        the annual percentage increase in the Consumer 
                        Price Index for Urban Wage Earners and Clerical 
                        Workers published by the Bureau of Labor 
                        Statistics.
                            ``(iv) Authority to increase limits.--The 
                        Board may increase the percentage referred to 
                        in clause (i)(I) and the dollar amount 
                        described in clause (i)(II) as the Board may 
                        determine to be appropriate.
                    ``(B) Well capitalized institutions.--Each 
                depository institution controlled by the financial 
                services holding company is well capitalized.
                    ``(C) Well managed institutions.--
                            ``(i) In general.--Each depository 
                        institution controlled by the financial 
                        services holding company received a CAMEL 
                        composite rating of 1 or 2 (or an equivalent 
                        rating under an equivalent rating system) in 
                        the most recent examination of such 
                        institution.
                            ``(ii) Exclusion for newly acquired 
                        institutions.--A depository institution 
                        acquired by a financial services holding 
                        company during the 12-month period ending on 
                        the date of the election by such company under 
                        paragraph (1) may be excluded for purposes of 
                        clause (i) if the financial services holding 
                        company has developed a plan acceptable to the 
                        appropriate Federal banking agency (for such 
                        institution) to restore the capital and 
                        management of the institution.
                    ``(D) Holding company guarantee.--
                            ``(i) In general.--The financial services 
                        holding company provides a written guarantee 
                        acceptable to the Federal Deposit Insurance 
                        Corporation to maintain the capital levels of 
                        each insured depository institution controlled 
                        by the financial services holding company at 
                        not less than the levels required for such 
                        institution to remain well capitalized.
                            ``(ii) Limitation on liability.--The 
                        liability of a financial services holding 
                        company under a guarantee provided under this 
                        subparagraph shall not exceed an amount equal 
                        to 10 percent of the total risk-weighted assets 
                        of the insured depository institution, measured 
                        as of the date that the institution becomes 
                        undercapitalized.
                            ``(iii) Duration of guarantee.--
                        Notwithstanding paragraph (1), a financial 
                        services holding company that has elected 
                        treatment under this subsection shall continue 
                        to be bound by the guarantee made under this 
                        subsection until released in accordance with 
                        this subparagraph.
                            ``(iv) Release from liability.--The Board 
                        shall release a financial services holding 
                        company from the guarantee applicable with 
                        respect to any depository institution 
                        subsidiary of such company--
                                    ``(I) upon the written request of 
                                the financial services holding company 
                                to revoke the company's election under 
                                paragraph (1) if the Board determines 
                                that each depository institution 
                                controlled by the financial services 
                                holding company is well capitalized and 
                                well managed at the time of such 
                                revocation;
                                    ``(II) in the case of a financial 
                                services holding company which no 
                                longer meets the requirements of 
                                subparagraph (A), upon a determination 
                                by the Board that each depository 
                                institution controlled by the financial 
                                services holding company is well 
                                capitalized and well managed;
                                    ``(III) upon the written request of 
                                the financial services holding company 
                                following the divestiture of control of 
                                the depository institution in a 
                                transaction that does not require 
                                Federal assistance if the Board 
                                determines that, immediately following 
                                the divestiture, the depository 
                                institution is or will be well 
                                capitalized; or
                                    ``(IV) upon a determination by the 
                                Board, after consultation with the 
                                Federal Deposit Insurance Corporation, 
                                that, subject to the limit on liability 
                                provided in clause (ii), the financial 
                                services holding company has fully 
                                performed under the guarantee.
                    ``(E) Responsiveness to community needs.--The lead 
                insured depository institution subsidiary of the 
                financial services holding company and insured 
                depository institutions controlling at least 80 percent 
                of the aggregate total risk-weighted assets of insured 
                depository institutions controlled by the financial 
                services holding company have achieved a `satisfactory 
                record of meeting community credit needs', or better, 
                during the most recent examination of such insured 
                depository institutions.
            ``(3) No notice or approval required for certain purposes 
        under paragraphs (8), (13), or (15) of section 4(c).--
                    ``(A) In general.--Notwithstanding paragraphs (8) 
                and (13) of section 4(c), a financial services holding 
                company that has in effect an election under paragraph 
                (1), and any subsidiary of such holding company, may, 
                without prior notice to, or the approval of, the Board 
                under paragraph (8) or (13) of section 4(c), engage de 
                novo in any activity, or acquire shares of any company 
                engaged in any activity, if--
                            ``(i) the Board has determined, by order or 
                        regulation in effect at the time the company or 
                        subsidiary commences to engage in such activity 
                        or acquire such shares, that the activity is 
                        permissible for a financial services holding 
                        company or a subsidiary of such company to 
                        engage in under paragraph (8) or (13) of 
                        section 4(c) (and regulations prescribed under 
                        such paragraphs); and
                            ``(ii) the activity is conducted in 
                        compliance with all conditions and limitations 
                        applicable to such activity under any 
                        regulation, order, or advisory opinion 
                        prescribed or issued by the Board.
                    ``(B) Subsequent notice.--A financial services 
                holding company that commences to engage in an 
                activity, or makes an acquisition, in accordance with 
                subparagraph (A) shall inform the Board of such fact, 
                in writing, not later than 10 days after commencing the 
                activity or consummating the acquisition.
            ``(4) Capital.--
                    ``(A) In general.--The Board shall not (by 
                regulation or order), directly or indirectly, establish 
                or apply minimum capital requirements to a financial 
                services holding company which has in effect an 
                election under paragraph (1) unless the Board 
                concludes, on the basis of all information available to 
                the Board, that the financial services holding company 
                is not maintaining sufficient financial resources to 
                meet fully any guarantee required under paragraph (2).
                    ``(B) Criteria for consideration.--For purposes of 
                making a determination under subparagraph (A), the 
                Board shall consider, in addition to any other relevant 
                considerations, the financial condition and the 
                adequacy of the capital of each of the depository 
                institutions controlled by the financial services 
                holding company.
            ``(5) Reports.--
                    ``(A) In general.--The reporting requirements 
                contained in subsection (c)(2) shall apply to a 
                financial services holding company which qualifies 
                under this subsection, to the extent provided by the 
                Board.
                    ``(B) Exemptions from reporting requirements.--
                            ``(i) In general.--The Board may, by 
                        regulation or order, exempt any company or 
                        class of companies, under such terms and 
                        conditions and for such periods as the Board 
                        shall provide in such regulation or order, from 
                        the provisions of this paragraph and any 
                        regulations prescribed under this paragraph.
                            ``(ii) Criteria for consideration.--In 
                        granting any exemption under clause (i), the 
                        Board shall consider, among other factors--
                                    ``(I) whether information of the 
                                type required under this paragraph is 
                                available from a supervisory agency (as 
                                defined in section 1101(7) of the Right 
                                to Financial Privacy Act of 1978), the 
                                Commodity Futures Trading Commission, 
                                or a foreign regulatory body of a 
                                similar type;
                                    ``(II) the primary business of the 
                                company; and
                                    ``(III) the nature and extent of 
                                domestic or foreign regulations of the 
                                company's activities.
            ``(6) Examinations.--
                    ``(A) Limited use of examination authority for 
                financial services holding companies.--The Board shall 
                not examine, under this section, any financial services 
                holding company described in paragraph (2)(A)(i) for 
                which an election is in effect under paragraph (1) or 
                any subsidiary (other than a depository institution) of 
                such holding company unless--
                            ``(i) the Board determines, on the basis of 
                        all information available to the Board, that--
                                    ``(I) the operations or activities 
                                of the financial services holding 
                                company or any subsidiary of such 
                                company, or any transaction involving 
                                such company or subsidiary and an 
                                affiliated depository institution, may 
                                pose a material risk to the safety and 
                                soundness of any depository institution 
                                owned by such holding company; or
                                    ``(II) the financial services 
                                holding company does not appear to have 
                                sufficient resources to meet the 
                                guarantee required under paragraph (2); 
                                or
                            ``(ii) the Board is unable to accomplish 
                        the purposes described in subsection (c)(3)(A) 
                        without such examinations.
                    ``(B) Restricted focus and deference in 
                examinations.--The Board shall limit the focus and 
                scope of any examination, under this section, of a 
                financial services holding company for which an 
                election is in effect under paragraph (1) or of any 
                subsidiary (other than a depository institution) of 
                such holding company and shall defer to examinations 
                conducted by the Securities Exchange Commission or 
                other supervisors in accordance with subparagraphs (B), 
                (C), and (D) of subsection (c)(3).''.

SEC. 503. CONVERSION OF UNITARY SAVINGS AND LOAN HOLDING COMPANIES TO 
              FINANCIAL SERVICES HOLDING COMPANIES.

    (a) In General.--The Bank Holding Company Act of 1956 (12 U.S.C. 
1841 et seq.) is amended by inserting after section 5 the following new 
section:

``SEC. 6. CONVERSION OF UNITARY SAVINGS AND LOAN HOLDING COMPANIES TO 
              FINANCIAL SERVICES HOLDING COMPANIES.

    ``(a) Streamlined Procedure for Conversion.--
            ``(1) In general.--During the 18-month period beginning on 
        the date of the enactment of the Financial Institutions 
        Regulatory Relief Act of 1996, no approval shall be required 
        under section 3(a) or paragraph (8) or (13) of section 4(c) for 
        any qualified savings and loan holding company to become a 
        financial services holding company if the requirements of 
        paragraph (2) are met.
            ``(2) Eligibility requirements.--A qualified savings and 
        loan holding company shall be eligible to become a financial 
        services holding company pursuant to paragraph (1) if--
                    ``(A) the company becomes a financial services 
                holding company as the result of the conversion of a 
                savings association controlled by such company as of 
the date of enactment of the Financial Institutions Regulatory Relief 
Act of 1996 into a bank;
                    ``(B) the company is adequately capitalized before 
                and immediately after the conversion referred to in 
                subparagraph (A);
                    ``(C) all depository institutions controlled by 
                such company are well capitalized before and 
                immediately after such conversion;
                    ``(D) all depository institutions controlled by 
                such company are well managed before the conversion;
                    ``(E) the Board would not be prohibited under any 
                provision of section 3(d) from approving the 
                transaction;
                    ``(F) the activities of the company and of each 
                subsidiary of the company comply with this Act (and 
                regulations prescribed under this Act); and
                    ``(G) the company provides the Board with at least 
                30 days written notice of the proposed conversion, and, 
                before the expiration of such 30-day period, the Board 
                has not objected to the company becoming a financial 
                services holding company based on the criteria 
                contained in this subsection.
            ``(3) Qualified savings and loan holding company defined.--
        For purposes of this subsection, the term `qualified savings 
        and loan holding company' means any company which became a 
        savings and loan holding company before January 1, 1995, and is 
        a savings and loan holding company as of the date of the 
        enactment of the Financial Institutions Regulatory Relief Act 
        of 1996.
    ``(b) Limited Retention of Existing Investments.--Any holding 
company which converts to a financial services holding company in 
accordance with subsection (a) may retain direct or indirect ownership 
or control of voting shares of any company as provided in, and subject 
to, section 4(k) if--
            ``(1) the holding company controlled 1 or more savings 
        associations in accordance with section 10(c)(3) of the Home 
        Owners Loan Act before January 1, 1995, and as of the date of 
        the enactment of the Financial Institutions Regulatory Relief 
        Act of 1996;
            ``(2) the investment in voting shares and the financial 
        services holding company meet the requirements of section 4(k); 
        and
            ``(3) more than 75 percent of the revenues of the financial 
        services holding company for each of the 2 calendar years 
        before the date such company became a financial services 
        holding company involved activities that the Board has 
        determined to be permissible under section 4(c)(8).''.
    (b) Ownership of Shares of Certain Companies.--Section 4 of the 
Bank Holding Company Act of 1956 (12 U.S.C. 1843) is amended by adding 
at the end the following new subsection:
    ``(k) Ownership of Shares of Certain Companies.--
            ``(1) Nonconforming financial companies.--Notwithstanding 
        subsection (a), a financial services holding company may retain 
        direct or indirect ownership or control of voting shares of any 
        company that--
                    ``(A) engages solely in activities that the Board 
                finds to be financial but which the Board has not 
                authorized under subsection (c)(8) (and such other 
                financial activities that the Board has authorized) 
                if--
                            ``(i) the financial services holding 
                        company acquired the shares of a company 
                        engaged in such activities or of each company 
                        to which the company engaged in such activities 
                        is a successor more than 2 years before the 
                        date that such financial services holding 
                        company becomes a financial services holding 
                        company;
                            ``(ii) the aggregate investment by the 
                        financial services holding company in shares of 
                        all such companies does not exceed 10 percent 
                        of the total consolidated capital and surplus 
                        of the financial services holding company as of 
                        the date that the holding company becomes a 
                        financial services holding company or as of the 
                        date of any additional investment by the 
                        financial services holding company in such 
                        shares;
                            ``(iii) the company engaged in such 
                        activities continues to engage only in 
                        activities that such company conducted as of 
                        the date that such financial services holding 
                        company becomes a financial services holding 
                        company (or other activities permitted under 
                        subsection (c)(8)); and
                            ``(iv) the company was a qualified savings 
                        and loan holding company (as defined in section 
                        6(a)(3)) which became a financial services 
                        holding company in accordance with section 6; 
                        or
                    ``(B) engages in activities not authorized under 
                this section if--
                            ``(i) the financial services holding 
                        company held the shares of any company engaged 
                        in such activities as of the date of the 
                        enactment of the Financial Services 
                        Competitiveness and Regulatory Relief Act of 
                        1996 and the financial services holding company 
                        was then exempt from the provisions of this 
                        section pursuant to subsection (d) as of such 
                        date;
                            ``(ii) the company engaged in such 
                        activities continues to engage only in the same 
                        general lines of business and related 
                        activities that such company conducted as of 
                        the date of the enactment of the Financial 
                        Institutions Regulatory Relief Act of 1996 (or 
                        other activities permitted under subsection 
                        (c)); and
                            ``(iii) 80 percent of the aggregate gross 
                        revenues of the financial services holding 
                        company and the subsidiaries of such holding 
                        company as of the date of the enactment of the 
Financial Institutions Regulatory Relief Act of 1996 was attributable 
to--
                                    ``(I) ownership and operation of 
                                depository institutions;
                                    ``(II) activities that are 
                                financial in nature as determined by 
                                the Board pursuant to subsection 
                                (c)(8); and
                                    ``(III) such other activities that 
                                would be permissible generally for the 
                                holding company as a financial services 
                                holding company.
            ``(2) Nonfinancial companies.--
                    ``(A) In general.--Notwithstanding subsection (a), 
                a financial services holding company may, during the 5-
                year period beginning on the date that the company 
                becomes a financial services holding company, retain 
                direct or indirect ownership or control of voting 
                shares of any company which--
                            ``(i) the financial services holding 
                        company owns or controls on the date such 
                        holding company becomes a financial services 
                        holding company; and
                            ``(ii) a financial services holding company 
                        is not authorized to own or control, directly 
                        or indirectly, under section 3 or subsections 
                        (a) or (c) of this section.
                    ``(B) Extension of divestiture period.--The Board 
                may extend the period described in subparagraph (A) for 
                an additional period not to exceed 5 years if the 
                Board--
                            ``(i) determines that such extension is 
                        necessary to avert substantial loss to the 
                        financial services holding company; and
                            ``(ii) finds that the financial services 
                        holding company has made good faith efforts to 
                        divest such shares.
                    ``(C) No expansion of nonfinancial companies prior 
                to divestiture.--Unless an acquisition or activity is 
                permitted in accordance with subsection (c) or section 
                3--
                            ``(i) no financial services holding 
                        company, and no company whose shares are owned 
                        or controlled by a financial services holding 
                        company in accordance with this paragraph, may 
                        acquire any interest in or assets of any other 
                        company, and
                            ``(ii) no company whose shares are owned or 
                        controlled by a financial services holding 
                        company pursuant to this paragraph may engage 
                        directly or indirectly in any activity that the 
                        company did not conduct on the day before the 
                        financial services holding company registered 
                        as a financial services holding company.
            ``(3) Restrictions on joint marketing.--No depository 
        institution (and no subsidiary of such institution) shall--
                    ``(A) offer or market, directly or indirectly 
                through any arrangement, any product or service of any 
                affiliate whose shares are owned or controlled by the 
                financial services holding company pursuant to this 
                subsection; or
                    ``(B) permit any of such depository institution's 
                or subsidiary's products or services to be offered or 
                marketed, directly or indirectly through any 
                arrangement, by or through any affiliate whose shares 
                are owned or controlled by the financial services 
                holding company pursuant to this subsection,
        unless, in a case involving an affiliate held under this 
        subsection, the product or service is permissible or authorized 
        for financial services holding companies to provide under 
        subsection (c)(8).
            ``(4) Depository institution defined.--For purposes of 
        paragraph (3), the term `depository institution' includes a 
        foreign bank.''.

SEC. 504. COORDINATION WITH STATE LAW.

    No provision of this title, and no amendment made by this title to 
any other provision of law, may be construed as superseding any 
provision of the law of any State which imposes additional requirements 
or establishes higher standards for the safe and sound operation and 
condition of depository institutions (as defined in section 3 of the 
Federal Deposit Insurance Act) and the protection of consumers than the 
requirements imposed or the standards established under this title and 
the amendments made by this title to other provisions of law (including 
capital standards and other safeguards placed on affiliates).

SEC. 505. CONFORMING AMENDMENTS TO THE BANK HOLDING COMPANY ACT OF 
              1956.

    (a) Short Title; Table of Contents.--The first section of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1841 note) is amended to read as 
follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Financial 
Services Holding Company Act of 1996'.
    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:

``Sec. 1.  Short title; table of contents.
``Sec. 2.  Definitions.
``Sec. 3.  Acquisition of bank shares or assets.
``Sec. 4.  Interests in nonbanking organizations.
``Sec. 5.  Administration.
``Sec. 6.  Conversion of unitary savings and loan holding companies to 
                            financial services holding companies.
``Sec. 7.  Reservation of rights to States.
``Sec. 8.  Penalties.
``Sec. 9.  Judicial review.
``Sec. 11. Saving provision.
``Sec. 12. Separability of provisions.
    ``(c) References in Other Laws.--Any reference in any Federal or 
State law to a provision of the Bank Holding Company Act of 1956 shall 
be deemed to be a reference to the corresponding provision of this 
Act.''.
    (b) Definitions.--
            (1) Subsection (n) of section 2 of the Bank Holding Company 
        Act of 1956 (12 U.S.C. 1841(n)) is amended by inserting 
        ```depository institution','' before ```insured depository 
        institution'''.
            (2) Subsection (o) of section 2 of the Bank Holding Company 
        Act of 1956 (12 U.S.C. 1841(o)) is amended--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) Lead depository institution.--The term `lead 
        depository institution' means the largest depository 
        institution controlled by the financial services holding 
        company, based on a comparison of the average total assets 
        controlled by each depository institution during the previous 
        12-month period.''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(8) Depository institution for certain sections.--
        Notwithstanding subsection (n), the term `depository 
        institution' includes, for purposes of paragraph (1), any 
        branch, agency, or commercial lending company operated in the 
        United States by a foreign bank.
            ``(9) Well Managed.--The term `well managed' means--
                    ``(A) in the case of any company or depository 
                institution which receives examinations, the 
                achievement of--
                            ``(i) a CAMEL composite rating of 1 or 2 
                        (or an equivalent rating under an equivalent 
                        rating system) in connection with the most 
                        recent examination or subsequent review of such 
                        company or institution; and
                            ``(ii) at least a satisfactory rating for 
                        management, if such rating is given; or
                    ``(B) in the case of a company or depository 
                institution that has not received an examination 
                rating, the existence and use of managerial resources 
                which the Board determines are satisfactory.''.
            (3) Section 2 of the Bank Holding Company Act of 1956 (12 
        U.S.C. 1841) is amended by adding at the end the following new 
        subsections:
    ``(p) Capital Terms.--
            ``(1) Depository institutions.--With respect to depository 
        institutions, the terms `well capitalized,' `adequately 
        capitalized' and `undercapitalized' have the meanings given to 
        such terms in accordance with section 38(b) of the Federal 
        Deposit Insurance Act.
            ``(2) Financial services holding company.--The following 
        definitions shall apply with respect to financial services 
        holding companies:
                    ``(A) Adequately capitalized.--The term `adequately 
                capitalized' means a level of capitalization which 
                meets or exceeds the required minimum level established 
                by the Board for each relevant capital measure for 
                financial services holding companies.
                    ``(B) Well capitalized.--The term `well 
                capitalized' means a level of capitalization which 
                meets or exceeds the required capital levels 
                established by the Board for well capitalized financial 
                services holding companies.
            ``(3) 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 
        financial services holding companies.
    ``(q) Foreign Bank Terms.--For purposes of subsection (o)--
            ``(1) the terms `agency', `branch', and `commercial lending 
        company' have the same meaning as in section 1(b) of the 
        International Banking Act of 1978; and
            ``(2) the term `foreign bank' means a foreign bank (as 
        defined in section 1(b) of the International Banking Act of 
        1978) which operates a branch, agency or commercial lending 
        company, or owns or controls a bank, in the United States.''.
    (c) Amendment Regarding Conditional Approval of Notices.--Section 
4(a)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(a)(2)) 
is amended by striking ``paragraph (8)'' and all that follows through 
``issued by the Board under such paragraph'' and inserting ``subsection 
(c)(8), subject to all the conditions specified in such subsection or 
in any order or regulation issued by the Board under such subsection''.
    (d) Amendment to Notice Procedures.--Section 4(j) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1843(j)) (as amended by section 
201 of this title) is amended--
            (1) in paragraph (1)(A), by striking ``subsection (c)(8) or 
        (a)(2)'' and inserting ``subsection (a)(2) or (c)(8)''; and
            (2) in paragraph (1)(E)--
                    (A) by striking ``subsection (c)(8) or (a)(2)'' and 
                inserting ``subsection (a)(2) or (c)(8)''; and
                    (B) by striking the last sentence and inserting the 
                following: ``In no event may the Board, without the 
                agreement of the financial services holding company 
                submitting the notice, extend the notice period under 
                this subparagraph beyond the period that ends 180 days 
                after the date that a notice is filed with the Board or 
                the relevant Federal reserve bank in accordance with 
                the regulations of the Board.''.
    (e) Elimination of Obsolete Provisions.--The Bank Holding Company 
Act of 1956 (12 U.S.C. 1841 through 1849) is amended--
            (1) in section 4(a)(2)--
                    (A) by striking ``or in the case of a company'' and 
                ending ``after December 31, 1980,''; and
                    (B) by striking the sentence beginning 
                ``Notwithstanding any other provision of this 
                paragraph'';
            (2) in section 4(b), by striking ``After two years from the 
        date of enactment of this Act, no'' and inserting ``No''; and
            (3) in section 5(a)--
                    (A) by striking ``Within one hundred and eighty 
                days after the date of enactment of this Act, or 
                within'' and inserting ``Within''; and
                    (B) by striking ``whichever is later,''.
    (f) Conforming Amendments.--The Bank Holding Company Act of 1956 
(12 U.S.C. 1841 et seq.) is amended as follows:
            (1) In section 3(c)(4), by striking ``one-bank holding 
        company'' each place such term appears and inserting ``1-bank 
        financial services holding company''.
            (2) In section 3(f)(5), by striking ``bank holding 
        company'' the first and second time such term appears and 
        inserting ``financial services holding company''.
            (3) In section 4(i)(3)(A), by striking ``is acquired'' and 
        inserting ``was acquired''.
            (4) By striking ``bank holding companies'' each place such 
        appears in the following sections and inserting ``financial 
        services holding companies'':
                    (A) Section 3(d).
                    (B) Section 4(f).
                    (C) Section 7(a).
            (5) By striking ``bank holding company's'' each place such 
        term appears in section 4(c)(14) and inserting ``financial 
        services holding company's''.
            (6) By striking ``bank holding company'' each place such 
        term appears in the following sections and inserting 
        ``financial services holding company'':
                    (A) Subsections (a), (d), (e), (g), (h), and (o) of 
                section 2.
                    (B) Subsections (a), (b), (d), (f)(1), (f)(2), and 
                (f)(3) of section 3.
                    (C) Subsections (a), (d), (e), (g), (h), and (j) of 
                section 4.
                    (D) Clause (ii) in the portion of section 4(c) 
                which precedes paragraph (1) of such section.
                    (E) Paragraphs (2), (3), (7), (8), (10), (11), 
                (12)(A), and (14) of section 4(c).
                    (F) Paragraphs (4), (5), and (9) of section 4(f).
                    (G) Paragraphs (1) and (2) of section 4(i).
                    (H) Sections 5, 7(b), 8, and 11.
            (7) In section 4(f)(1), by striking ``bank holding 
        company'' the second place such term appears and inserting 
        ``financial services holding company''.
            (8) In the headings for section 3(f) and 4(f), by striking 
        ``Bank Holding'' and inserting ``Financial Services Holding''.
            (9) In the heading the heading for section 2(o)(7), by 
        striking ``bank'' and inserting ``financial services''.
    (g) Treatment of Existing Bank Holding Companies.--Section 2(a)(6) 
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(6)) is 
amended by inserting at the end the following: ``Any company that was a 
bank holding company on the day before the date of enactment of the 
Financial Institutions Regulatory Relief Act of 1996 shall, for 
purposes of this Act, be deemed to be a financial services holding 
company as of the date on which the company became a bank holding 
company.''.
    (h) Other References.--Any reference in any Federal law to ``bank 
holding company'' or ``bank holding companies'' as those terms were 
defined under the Bank Holding Company Act of 1956 before the enactment 
of this Act shall be deemed to include a reference to ``financial 
services holding company'' and ``financial services holding 
companies'', respectively, as such terms are defined under the 
Financial Services Holding Company Act of 1996.

SEC. 506. CONFORMING AMENDMENTS TO THE BANK HOLDING COMPANY ACT 
              AMENDMENTS OF 1970.

    Section 106 of the Bank Holding Company Act Amendments of 1970 (12 
U.S.C. 1971 through 1978) is amended by striking ``bank holding 
company'' each place such term appears and inserting ``financial 
services holding company''.

SEC. 507. CREDIT CARDS FOR BUSINESS PURPOSES.

    Section 2(c)(2)(F) of the Bank Holding Company Act of 1956 
(relating to the definition of credit card banks) is amended--
            (1) in clause (i), by inserting ``including the provision 
        of credit card accounts for business purposes'' before the 
        semicolon; and
            (2) in clause (v), by inserting ``(other than the provision 
        of credit card accounts for business purposes in connection 
        with the credit card operations referred to in clause (i))'' 
        before the period.

SEC. 508. PROHIBITIONS ON CERTAIN DEPOSITORY INSTITUTION ASSOCIATIONS 
              WITH GOVERNMENT-SPONSORED ENTERPRISES.

    (a) Credit Unions.--Section 201 of the Federal Credit Union Act (12 
U.S.C. 1781) is amended by adding at the end the following new 
subsection:
    ``(e) Prohibition on Certain Associations.--
            ``(1) In general.--No insured credit union may be sponsored 
        by or accept financial support, directly or indirectly, from 
        any Government-sponsored enterprise, if the credit union 
        includes the customers of the Government-sponsored enterprise 
        in the field of membership of the credit union.
            ``(2) Routine business financing.--Paragraph (1) shall not 
        apply with respect to advances or other forms of financial 
        assistance generally provided by a Government-sponsored 
        enterprise in the ordinary course of business of the 
        enterprise.
            ``(3) Government-sponsored enterprise defined.--For 
        purposes of this subsection, the term `Government-sponsored 
        enterprise' has the meaning given to such term in section 
        1404(e)(1)(A) of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989.''.
    (b) Banks and Savings Associations.--Section 18 of the Federal 
Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end 
the following new subsection:
    ``(s) Prohibition on Certain Affiliations.--
            ``(1) In general.--No depository institution may be an 
        affiliate of, be sponsored by, or accept financial support, 
        directly or indirectly, from any Government-sponsored 
        enterprise.
            ``(2) Exception for members of a federal home loan bank.--
        Paragraph (1) shall not apply with respect to the membership of 
        a depository institution in a Federal home loan bank.
            ``(3) Routine business financing.--Paragraph (1) shall not 
        apply with respect to advances or other forms of financial 
        assistance provided by a Government-sponsored enterprise 
        pursuant to the statutes governing such enterprise.
            ``(4) Government-sponsored enterprise defined.--For 
        purposes of this subsection, the term `Government-sponsored 
        enterprise' has the meaning given to such term in section 
        1404(e)(1)(A) of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989.''.
    (c) Effective Date.--The amendments made by this section shall 
apply on and after January 1, 1996.

SEC. 509. PROVISIONS APPLICABLE TO LIMITED PURPOSE BANKS.

    (a) Exception to Restriction on Asset Growth of Nonbank Banks.--
            (1) In general.--Section 4(f)(3) of the Bank Holding 
        Company Act of 1956 (12 U.S.C. 1843(f)(3)) is amended by adding 
        at the end the following new subparagraph:
                    ``(D) Exception to restriction on asset growth, 
                activities, and certain cross-marketing restrictions.--
                            ``(i) Qualification for exception from 
                        growth restriction.--A bank controlled by a 
                        company described in paragraph (1) shall not be 
                        subject to the limitation contained in 
                        subparagraph (B)(iv) if the company meets the 
                        requirements of this subparagraph and the 
                        requirements of paragraph (14).
                            ``(ii) Qualification for exception from 
                        activities restriction.--Notwithstanding 
                        subparagraph (B)(i), a bank controlled by a 
                        company described in paragraph (1) that meets 
                        the requirements of clause (i) may engage in an 
                        activity authorized under applicable law (other 
                        than an activity that would have resulted in 
                        the institution being a bank for purposes of 
                        this Act, as in effect on the day before the 
                        date of the enactment of the Competitive 
                        Equality Banking Act of 1987, based on the 
                        activities each bank conducted on March 5, 
                        1987, as reported to the Board) if such bank, 
                        at least 60 days before commencing such 
                        activity, has notified the Board of the bank's 
                        intention to commence such activity and 
                        either--
                                    ``(I) the Board has notified such 
                                bank that the Board will not disapprove 
                                the proposed activity as unsafe or 
                                unsound; or
                                    ``(II) the Board has not, within 60 
                                days after receiving such notice, 
                                disapproved the proposal on the basis 
                                of such criteria.
                            ``(iii) Qualification for exception from 
                        cross-marketing restriction.--Notwithstanding 
                        subparagraph (B)(ii), a bank controlled by a 
                        company described in paragraph (1) that meets 
                        the requirements of clause (i) may offer or 
                        market products or services of an affiliate or 
                        permit the bank's products or services to be 
                        offered or marketed in connection with products 
                        or services of an affiliate if such products or 
                        services are offered or marketed only to the 
                        extent permissible for banks or financial 
                        services holding companies to provide by law, 
                        regulation, or order under subsection (c)(8).
                            ``(iv) Exception from divestiture 
                        requirement for banks restored to well 
                        capitalized level.--If any bank controlled by a 
                        company that meets the requirements of clause 
                        (i) ceases to be well capitalized, the company 
                        shall divest control of such bank in accordance 
                        with paragraph (4) unless--
                                    ``(I) within 12 months after the 
                                date the bank ceases to be well 
                                capitalized, the capital of the bank is 
                                restored to the well capitalized level; 
                                and
                                    ``(II) after the end of such 12-
                                month period, the bank remains well 
                                capitalized, subject to the capital 
                                restoration requirements in subclause 
                                (I).
                            ``(v) Action required if bank ceases to be 
                        adequately capitalized.--If any bank controlled 
                        by a company that meets the requirements of 
                        clause (i) ceases to be adequately capitalized, 
                        the company shall, within 30 days after the 
                        date as of which the bank ceases to be 
                        adequately capitalized--
                                    ``(I) execute an agreement with the 
                                Board to divest control of such bank in 
                                accordance with paragraph (4); or
                                    ``(II) restore the capital of the 
                                bank to at least the adequately 
                                capitalized level.''.
            (2) Qualifications for companies under paragraph (3)(d).--
        Section 4(f) of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1843(f)) is amended by adding at the end the following new 
        paragraph:
            ``(14) Qualifications for companies under paragraph 
        (3)(d).--A company meets the requirements of paragraph 
        (3)(D)(i) if--
                    ``(A) the company (based on consolidated revenues) 
                engages predominantly in activities that are financial 
                in nature (including activities not authorized under 
                subsection (c)(8)) or are incidental to such financial 
                activities;
                    ``(B) all insured depository institutions 
                controlled by such company are well capitalized and 
                well managed; and
                    ``(C) the company has provided at least 60 days 
                prior written notice to the Board and, during that 
                period, the Board has not disapproved the proposal.''.
    (b) Amended Divestiture Procedure for Certain Companies.--Section 
4(f)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(4)) 
is amended by adding at the end the following: ``If any company 
described in paragraph (1) which meets the requirements of paragraph 
(3)(D)(i) fails to qualify for the exemption provided under paragraph 
(2), such company shall divest, in accordance with this paragraph, 
control of each bank the company controls unless, within 12 months 
after the date that the company fails to comply with the provisions of 
paragraph (2), the company has corrected the condition or ceased the 
activity that led to the failure to comply.''.
    (c) Conversion of Certain Nonbank Holding Companies to Financial 
Services Holding Companies.--Section 4(f) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(f)) is amended by inserting after paragraph 
(14) (as added by subsection (a)(2)) the following new paragraph:
            ``(15) Conversion of certain companies to financial 
        services holding companies.--
                    ``(A) In general.--During the 18-month period 
                beginning on the date of the enactment of the Financial 
                Institutions Regulatory Relief Act of 1996, any company 
                described in paragraph (1) may become a financial 
                services holding company if--
                            ``(i) the company (on a consolidated basis) 
                        engages predominantly in activities that are 
                        financial in nature (including activities not 
                        authorized under subsection (c)(8)) or are 
                        incidental to such financial activities;
                            ``(ii) all insured depository institutions 
                        controlled by such company are well capitalized 
                        and well managed;
                            ``(iii) the company provides written notice 
                        to the Board under section 4 at least 60 days 
                        before the company becomes a financial services 
                        holding company; and
                            ``(iv) the Board does not object to such 
                        transaction before the end of such 60-day 
                        period; and
                    ``(B) Retention of financial companies.--
                            ``(i) In general.--Notwithstanding 
                        subsection (a), a company that becomes a 
                        financial services holding company pursuant to 
                        subparagraph (A) may retain direct or indirect 
                        ownership or control of voting shares of any 
                        company that engages solely in activities that 
                        the Board finds to be financial but which the 
                        Board has not authorized under subsection 
                        (c)(8) (and such other financial activities 
                        that the Board has authorized) if the financial 
                        services holding company acquired the shares of 
                        such company, or of each company to which such 
                        company is a successor, before January 1, 1995.
                            ``(ii) Limits following registration.--A 
                        company that becomes a financial services 
                        holding company pursuant to this paragraph, and 
                        any company whose shares are owned or 
                        controlled by a financial services holding 
                        company pursuant to this paragraph, shall be 
                        subject to the limitations contained in 
                        paragraph (3) of section 4(k) as if the 
                        activities or shares of such company were 
                        conducted or held pursuant to section 4(k)(2).
                            ``(iii) Period to conform other 
                        activities.--Notwithstanding subsection (a), a 
                        company that becomes a financial services 
                        holding company pursuant to subparagraph (A) 
                        may retain direct or indirect ownership or 
                        control of voting shares of any company not 
                        otherwise permitted under this section for the 
                        period provided in, and subject to the 
                        conditions contained in, paragraphs (2) and (3) 
                        of section 4(k).
                    ``(C) Election for reduced supervision.--Any 
                company that becomes a financial services holding 
                company pursuant to subparagraph (A) may elect to be 
                governed by the provisions of paragraphs (3), (4), (5), 
                and (6) of section 5(g), subject to the requirements of 
                such section, if--
                            ``(i) the company, and any insured 
                        depository institution controlled by such 
                        company, meet the requirements of section 5(g) 
                        (other than the requirements of paragraph 
                        (2)(A) of such section);
                            ``(ii) the company does not acquire more 
                        than 5 percent of the shares of any additional 
                        depository institution after the date that such 
                        company becomes a financial services holding 
                        company; and
                            ``(iii) no depository institution 
                        controlled by such company acquires, 
                        establishes, or operates an additional branch 
                        office after the date that the company becomes 
                        a financial services holding company.''.

SEC. 510. DISCRETION OF FEDERAL RESERVE BOARD.

    (a) Applications.--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) Discretion With Regard to Applications.--In the case of an 
application by an entity which is subject to this section because such 
entity owns or controls 5 percent or more of the voting stock of a bank 
holding company, the Board may--
            ``(1) waive the filing requirement under this section with 
        respect to applications by such entity if the Board determines 
        that no regulatory purpose would be served by such filing 
        requirement; and
            ``(2) adjust the manner in which the Board may require any 
        company to seek the Board's approval under subsection (a) for a 
        proposed action or the manner in which the Board reviews any 
        such proposed action, including--
                    ``(A) adjustments with regard to the types and 
                amount of information which the Board may require to be 
                included in any type of application or proposal 
                submitted for the Board's approval under subsection 
                (a); and
                    ``(B) waiver of any requirement for an application, 
                or reducing the scope of an application, (including an 
                application by a corporation of a central or provincial 
                government) in any case in which the Board determines 
                that--
                            ``(i) an applicant does not and will not 
                        exercise significant managerial control over, 
                        or otherwise holds a purely passive investment 
                        in the voting securities of, a bank or another 
                        bank holding company, notwithstanding the fact 
                        that the applicant directly or indirectly owns, 
                        controls, or has the power to vote more than 5 
                        percent of any class of voting securities of 
                        such bank or other bank holding company; or
                            ``(ii) requiring an application, or 
                        requiring an extensive application, by an 
                        entity, in connection with the application by a 
                        bank holding company subsidiary of such entity 
                        to acquire a bank, would not serve any 
                        legitimate regulatory need of the Board in 
                        rendering a decision with regard to the 
                        application of such bank holding company 
                        subsidiary.''.
    (b) Collateral.--Section 11(m) of the Federal Reserve Act (12 
U.S.C. 248) is amended--
            (1) by striking ``not less than six of''
            (2) by inserting a comma after ``its members'';
            (3) by striking ``but no such loan shall be made by any 
        such bank to any person in an amount in excess of 15 percent of 
        the unimpaired capital and surplus of such bank: Provided, 
        That'' and inserting ``except that''; and
            (4) by striking ``15 percent on loans to any person''.

SEC. 511. QUALIFIED FAMILY PARTNERSHIPS.

    Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841) 
is amended--
            (1) in subsection (b), by inserting ``, and shall not 
        include a qualified family partnership'' after ``by any 
        State''; and
            (2) by inserting after subsection (q) (as added by section 
        505(b)(3) of this subtitle) the following new subsection:
    ``(r) Qualified Family Partnership.--For purposes of this Act, the 
term `qualified family partnership' means a general or limited 
partnership which the Board determines--
            ``(1) does not directly control any banks, except through a 
        registered bank holding company;
            ``(2) does not control more than 1 registered bank holding 
        company;
            ``(3) does not engage in any business activity, except 
        indirectly through ownership of other business entities;
            ``(4) has no investments other than those permitted for a 
        bank holding company pursuant to section 4(c);
            ``(5) is not obligated on any debt, either directly or as a 
        guarantor;
            ``(6) has partners, all of whom are either--
                    ``(A) individuals related to each other by blood, 
                marriage (including former marriage), or adoption; or
                    ``(B) trusts for the primary benefit of individuals 
                so related; and
            ``(7) has filed with the Board a statement which includes--
                    ``(A) the basis for the eligibility of the 
                partnership under paragraph (6);
                    ``(B) a list of the existing activities and 
                investments of the partnership;
                    ``(C) a commitment to comply with this subsection;
                    ``(D) a commitment to comply with section 7 of the 
                Federal Deposit Insurance Act with respect to any 
                acquisition of control of an insured depository 
                institution occurring after the date of enactment of 
                this subsection; and
                    ``(E) a commitment to be subject to--
                            ``(i) examination by the Board to assure 
                        compliance with this subsection; and
                            ``(ii) section 8 of the Federal Deposit 
                        Insurance Act,
                to the same extent as if the qualified family 
                partnership were a bank holding company.''.

   Subtitle B--Interagency Banking and Financial Services Task Force

SEC. 521. INTERAGENCY BANKING AND FINANCIAL SERVICES TASK FORCE.

    (a) Establishment; Composition.--There is hereby established the 
Banking and Financial Services Task Force (hereafter in this subtitle 
referred to as the ``Task Force'') which shall consist of 7 members as 
follows:
            (1) The Secretary of the Treasury.
            (2) The Chairman of the Board of Governors of the Federal 
        Reserve System.
            (3) The Chairperson of the Board of Directors of the 
        Federal Deposit Insurance Corporation.
            (4) The Chairman of the Securities and Exchange Commission.
            (5) The Chairperson of the Commodities Futures Trading 
        Commission.
            (6) The Comptroller of the Currency.
            (7) A State bank supervisor (as defined in section 3(r) of 
        the Federal Deposit Insurance Act) selected by the chairperson 
        of the task force.
    (b) Chairperson.--The chairperson of the Task Force shall be the 
Secretary of the Treasury.
    (c) Designation of Officers and Employees.--The members of the Task 
Force may, from time to time, designate other officers or employees of 
their respective agencies to carry out their duties on the Task Force.
    (d) Compensation and Expenses.--Each member of the Task Force shall 
serve without additional compensation but shall be entitled to 
reasonable expenses incurred in carrying out official duties as a 
member.
    (e) Function of the Task Force.--
            (1) In general.--The Task Force shall meet as appropriate 
        to consider matters of mutual interest to the members and to 
        consider making recommendations to the Board of Governors of 
        the Federal Reserve System regarding the types of activities 
        that may be financial in nature for purposes of the Financial 
        Services Holding Company Act and to the Comptroller of the 
        Currency regarding the types of activities that may be 
        incidental to banking for purposes of section 5136 of the 
        Revised Statutes of the United States.
            (2) Consideration of recommendations.--The Board of 
        Governors of the Federal Reserve System and the Comptroller of 
        the Currency, as appropriate, shall take into account any 
        recommendation made to the respective agency by the Task Force 
        and, if the agency does not adopt the recommendation, shall 
        provide a written explanation to the Task Force.
    (f) Improving the Supervision, Efficiency, and Competitiveness of 
the Financial Services Industry.--
            (1) In general.--The Task Force shall seek to improve the 
        supervision, efficiency, and competitiveness of the financial 
        services industry by making recommendations for such 
        legislative or administrative action as the Task Force 
        determines to be appropriate to the Congress, each agency or 
        office represented by a member on the Task Force, and other 
        agencies or departments of the United States, including 
        recommendations for changes in law and in the regulations, 
        policies, and procedures of any department or agency.
            (2) Printing in federal register.--Recommendations from 
        paragraph (1) shall be printed in the Federal Register and 
        submitted to the Committee on Banking and Financial Services of 
        the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate.

SEC. 522. FINANCIAL SERVICES ADVISORY COMMITTEE.

    (a) Establishment.--There is hereby established the Financial 
Services Advisory Committee (hereinafter in this section referred to as 
the ``Committee'') to the Task Force.
    (b) Membership.--
            (1) In general.--The Committee shall consist of 9 members, 
        appointed as follows from among individuals who are not 
        officers or employees of the Federal Government and who are 
        especially qualified to serve on such committee by virtue of 
        their education, training, or experience:
                    (A) 1 member appointed by the Secretary of the 
                Treasury.
                    (B) 2 members appointed by the Comptroller of the 
                Currency.
                    (C) 2 members appointed by the Director of the 
                Office of Thrift Supervision.
                    (D) 2 members appointed by the Board of Governors 
                of the Federal Reserve System.
                    (E) 2 members appointed by the Board of Directors 
                of the Federal Deposit Insurance Corporation.
            (2) Representation of small and independent depository 
        institutions.--Of the members appointed under subparagraphs 
        (B), (C), (D), and (E) of paragraph (1), 1 of the 2 members 
        appointed under each such paragraph shall be appointed from 
        among individuals who are especially qualified to represent the 
        interests of depository institutions which--
                    (A) have total assets of less than $500,000,000; or
                    (B) are not controlled by any depository 
                institution holding company.
    (c) Vacancies.--Any vacancy on the Committee shall be filled in the 
same manner in which the original appointment was made.
    (d) Pay and Expenses.--Members of the Committee shall serve without 
pay, but each member shall be reimbursed for expenses incurred in 
connection with attendance of such members at meetings of the Committee 
by the agency which appointed such member to the Committee.
    (e) Terms.--Members shall be appointed for terms of 3 years.
    (f) Authority of the Committee.--The Committee may select a 
chairperson, vice chairperson, and secretary, and adopt methods of 
procedure, and shall have power--
            (1) to confer with each member of the Task Force on general 
        and special business conditions and regulatory and other 
        matters relating to the financial services industry in the 
        United States; and
            (2) to request information from, and to make 
        recommendations to, each Federal agency or office represented 
        on the Task Force with respect to matters within the 
        jurisdiction of such agency or office.
    (g) Meetings.--The Committee shall meet annually at the call of the 
chairperson or a majority of the members.
    (h) Reports.--The Committee shall submit an annual written report 
to the Committee on Banking and Financial Services of the House and to 
the Committee on Banking, Housing, and Urban Affairs of the Senate. 
Such report shall describe the activities of the Committee for such 
annual period and contain such recommendations as the Committee 
considers appropriate.
    (i) Provision of Staff and Other Resources.--Each of the Federal 
banking agencies shall provide the Committee with the use of such 
resources, including staff, as the Committee reasonably shall require 
to carry out its duties, including the preparation and submission of 
reports to Congress, under this section.
    (j) Definition.--For purposes of this section, the term ``insured 
depository institution'' has the meaning given to such term in section 
3 of the Federal Deposit Insurance Act.
    (k) Federal Advisory Committee Act Does Not Apply.--The Federal 
Advisory Committee Act shall not apply to the Committee.
    (l) Sunset.--The Committee shall cease to exist on the earlier of--
            (1) the abolition of the Task Force; or
            (2) the end of the 10-year period beginning on the date of 
        the enactment of this Act.

                        TITLE VI--DROUGHT RELIEF

SEC. 601. COOPERATIVE EFFORTS BETWEEN DEPOSITORY INSTITUTIONS AND 
              FARMERS AND RANCHERS IN DROUGHT-STRICKEN AREAS.

    (a) Findings.--The Congress hereby finds the following:
            (1) Severe drought is being experienced in the Plains and 
        the Southwest portions of our country.
            (2) Soil erosion is becoming a critical issue as the dry 
        season approaches and summer winds may rob these fields of 
        nutrient-rich topsoil.
            (3) Without immediate assistance, ranchers and farmers 
        would be forced to cull their herds bringing tremendous 
        volatility in the beef market.
            (4) The American people will feel the impact of this 
        drought in their pocketbooks through higher prices for grain 
        products.
            (5) The communities in drought-stricken areas are suffering 
        and borrowers may have difficulty meeting their obligations to 
        financial institutions.
            (6) Congress has already passed the Depository Institutions 
        Disaster Relief Act of 1992 which allows financial institutions 
        to make emergency exceptions to the appraisal requirement in 
        times of national disasters.
    (b) Sense of the Congress.--It is the sense of the Congress that 
financial institutions and Federal bank regulators should work 
cooperatively with farmers and ranchers in communities affected by 
drought conditions to allow financial obligations to be met without 
imposing undue burdens.

                    TITLE VII--FINANCIAL ACTIVITIES

SEC. 701. FINANCIAL ACTIVITIES.

    Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)(8)) is amended--
            (1) by striking ``shares of any company'' and all that 
        follows through ``broker'' and inserting ``shares of any 
        company the activities of which the Board after due notice has 
        determined (by order, regulation, or advisory opinion) to be 
financial in nature or incidental to such financial activities. In 
determining whether an activity is financial in nature or incidental to 
financial activities, the Board shall take into account changes or 
reasonably expected changes in the marketplace in which financial 
services holding companies compete as well as changes or reasonably 
expected changes in the technology by which these services are 
delivered. In addition, the Board shall take into account activities 
considered financial activities or banking or financial operations for 
purposes of the regulation of the Board designated as `Regulation K' 
(12 C.F.R. 211.23 (f)(5)(iii)(B)) as in effect on the date of the 
enactment of the Financial Institutions Regulatory Relief Act of 1996. 
Any activity that the Board has determined, by order or regulation that 
is in effect on such date to be so closely related to banking or 
managing or controlling banks as to be a proper incident thereto shall 
be deemed to be of a financial nature for purposes of this paragraph 
without further action by the Board (subject to the same terms and 
conditions contained in such order or regulation, unless modified by 
the Board), but for purposes of this subsection it shall not be closely 
related to banking or managing or controlling banks or financial in 
nature or incidental to a financial activity for a financial services 
holding company to provide any annuity contract the income on which is 
tax-deferred under section 72 of the Internal Revenue Code of 1986 as a 
principal, agent, or broker, or to provide insurance as a principal, 
agent, or broker'';
            (2) by striking the second sentence; and
            (3) by inserting after the period at the end of the 1st 
        sentence the following new sentence: ``For purposes of 
        subparagraphs (A) through (F), the term `insurance agency 
        activity', and for purposes of subparagraph (G), the term 
        `activity' includes providing any annuity contract as agent or 
        broker.''.

SEC. 702. RETIREMENT CERTIFICATES OF DEPOSITS.

    (a) In General.--Section 3(l)(5) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(l)(5) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) any liability of an insured depository 
                institution that arises under an annuity contract, the 
                income of which is tax deferred under section 72 of the 
                Internal Revenue Code of 1986.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to any liability of an insured depository that arises under an 
annuity contract issued on or after the date of enactment of this Act.

SEC. 703. GAO STUDY OF STATE SUPERVISION OF NATIONAL BANK INSURANCE 
              ACTIVITIES.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study to determine whether the supervision by State 
insurance regulators of insurance activities of national banks is 
adequate or comparable to the supervision of nonbank activities.
    (b) Consultation.--In conducting the study pursuant to subsection 
(a), the Comptroller General shall consult with State insurance 
regulators, Federal and State banking regulators, and representatives 
of insurance associations, banking associations, and consumer groups.
    (c) Report.--Before the end of the 180-day period beginning on the 
date of the enactment of this Act, the Comptroller General shall submit 
a report to the Congress on the findings and conclusions of the 
Comptroller General together with such recommendations as the 
Comptroller General determines to be appropriate.

SEC. 704. NATIONAL BANK LICENSING REQUIREMENTS.

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

``SEC. 5136A. NATIONAL BANK LICENSING REQUIREMENTS.

    ``National banks shall comply with applicable nondiscriminatory 
State--
            ``(1) licensing requirements establishing character, 
        experience, and educational qualifications for individuals 
        selling insurance as agents;
            ``(2) testing and continuing education requirements for 
        individuals selling insurance as agents; and
            ``(3) standards and requirements for types of licenses and 
        for license renewals that apply to individuals selling 
        insurance as agents.
    ``(b) Rule of Construction.--No provision of this section shall be 
construed as affecting the applicability or nonapplicability of other 
Federal laws or State laws to the insurance activities of national 
banks.''.
    (b) Clerical Amendment.--The table of sections for chapter 1 of 
title LXII of the Revised Statutes of the United States is amended--
            (1) by redesignating the item relating to section 5136A as 
        section 5136B; and
            (2) by inserting after the item relating to section 5136 
        the following new item:

``5136A. National bank licensing requirements.''.
    (c) Technical and Conforming Amendment.--Section 1306 of title 18, 
United States Code, is amended by striking ``5136A'' and inserting 
``5136B''.

                  TITLE VIII--DEPOSIT INSURANCE FUNDS

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Deposit Insurance Funds Act of 
1996''.

SEC. 802. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.

    (a) In General.--Except as provided in subsections (f) and (k), the 
Board of Directors of the Federal Deposit Insurance Corporation shall 
impose a special assessment on the SAIF-assessable deposits of each 
insured depository institution in accordance with assessment 
regulations of the Corporation at a rate applicable to all such 
institutions that the Board of Directors, in its sole discretion, 
determines (after taking into account the adjustments described in 
subsections (g), (h), and (j)) will cause the Savings Association 
Insurance Fund to achieve the designated reserve ratio on the first 
business day of the 1st month beginning after the date of the enactment 
of this Act.
    (b) Factors To Be Considered.--In carrying out subsection (a), the 
Board of Directors shall base its determination on--
            (1) the monthly Savings Association Insurance Fund balance 
        most recently calculated;
            (2) data on insured deposits reported in the most recent 
        reports of condition filed not later than 70 days before the 
        date of enactment of this Act by insured depository 
        institutions; and
            (3) any other factors that the Board of Directors deems 
        appropriate.
    (c) Date of Determination.--For purposes of subsection (a), the 
amount of the SAIF-assessable deposits of an insured depository 
institution shall be determined as of March 31, 1995.
    (d) Date Payment Due.--Except as provided in subsection (g), the 
special assessment imposed under this section shall be--
            (1) due on the first business day of the 1st month 
        beginning after the date of the enactment of this Act; and
            (2) paid to the Corporation on the later of--
                    (A) the first business day of the 1st month 
                beginning after such date of enactment; or
                    (B) such other date as the Corporation shall 
                prescribe, but not later than 60 days after the date of 
                enactment of this Act.
    (e) Assessment Deposited in SAIF.--Notwithstanding any other 
provision of law, the proceeds of the special assessment imposed under 
this section shall be deposited in the Savings Association Insurance 
Fund.
    (f) Exemptions for Certain Institutions.--
            (1) Exemption for weak institutions.--The Board of 
        Directors may, by order, in its sole discretion, exempt any 
        insured depository institution that the Board of Directors 
        determines to be weak, from paying the special assessment 
        imposed under this section if the Board of Directors 
determines that the exemption would reduce risk to the Savings 
Association Insurance Fund.
            (2) Guidelines required.--Not later than 30 days after the 
        date of enactment of this Act, the Board of Directors shall 
        prescribe guidelines setting forth the criteria that the Board 
        of Directors will use in exempting institutions under paragraph 
        (1). Such guidelines shall be published in the Federal 
        Register.
            (3) Exemption for certain newly chartered and other defined 
        institutions.--
                    (A) In general.--In addition to the institutions 
                exempted from paying the special assessment under 
                paragraph (1), the Board of Directors shall exempt any 
                insured depository institution from payment of the 
                special assessment if the institution--
                            (i) was in existence on October 1, 1995, 
                        and held no SAIF-assessable deposits before 
                        January 1, 1993;
                            (ii) is a Federal savings bank which--
                                    (I) was established de novo in 
                                April 1994 in order to acquire the 
                                deposits of a savings association which 
                                was in default or in danger of default; 
                                and
                                    (II) received minority interim 
                                capital assistance from the Resolution 
                                Trust Corporation under section 21A(w) 
                                of the Federal Home Loan Bank Act in 
                                connection with the acquisition of any 
                                such savings association; or
                            (iii) is a savings association, the 
                        deposits of which are insured by the Savings 
                        Association Insurance Fund, which--
                                    (I) before January 1, 1987, was 
                                chartered as a Federal savings bank 
                                insured by the Federal Savings and Loan 
                                Insurance Corporation for the purpose 
                                of acquiring all or substantially all 
                                of the assets and assuming all or 
                                substantially all of the deposit 
                                liabilities of a national bank in a 
                                transaction consummated after July 1, 
                                1986; and
                                    (II) as of the date of that 
                                transaction, had assets of less than 
                                $150,000,000.
                    (B) Definition.--For purposes of this paragraph, an 
                institution shall be deemed to have held SAIF-
                assessable deposits before January 1, 1993, if--
                            (i) it directly held SAIF-assessable 
                        deposits before that date; or
                            (ii) it succeeded to, acquired, purchased, 
                        or otherwise holds any SAIF-assessable deposits 
                        as of the date of enactment of this Act that 
                        were SAIF-assessable deposits before January 1, 
                        1993.
            (4) Exempt institutions required to pay assessments at 
        former rates.--
                    (A) Payments to saif and dif.--Any insured 
                depository institution that the Board of Directors 
                exempts under this subsection from paying the special 
                assessment imposed under this section shall pay 
                semiannual assessments--
                            (i) during calendar years 1996, 1997, and 
                        1998, into the Savings Association Insurance 
                        Fund, based on SAIF-assessable deposits of that 
                        institution, at assessment rates calculated 
                        under the schedule in effect for Savings 
                        Association Insurance Fund members on June 30, 
                        1995; and
                            (ii) during calendar year 1999--
                                    (I) into the Deposit Insurance 
                                Fund, based on SAIF-assessable deposits 
                                of that institution as of December 31, 
                                1998, at assessment rates calculated 
                                under the schedule in effect for 
                                Savings Association Insurance Fund 
                                members on June 30, 1995; or
                                    (II) in accordance with clause (i), 
                                if the Bank Insurance Fund and the 
                                Savings Association Insurance Fund are 
                                not merged into the Deposit Insurance 
                                Fund.
                    (B) Optional pro rata payment of special 
                assessment.--This paragraph shall not apply with 
                respect to any insured depository institution (or 
                successor insured depository institution) that has 
                paid, during any calendar year from 1997 through 1999, 
                upon such terms as the Corporation may announce, an 
                amount equal to the product of--
                            (i) 16.7 percent of the special assessment 
                        that the institution would have been required 
                        to pay under subsection (a), if the Board of 
                        Directors had not exempted the institution; and
                            (ii) the number of full semiannual periods 
                        remaining between the date of the payment and 
                        December 31, 1999.
    (g) Special Election for Certain Institutions Facing Hardship as a 
Result of the Special Assessment.--
            (1) Election authorized.--If--
                    (A) an insured depository institution, or any 
                depository institution holding company which, directly 
                or indirectly, controls such institution, is subject to 
                terms or covenants in any debt obligation or preferred 
                stock outstanding on September 13, 1995; and
                    (B) the payment of the special assessment under 
                subsection (a) would pose a significant risk of causing 
                such depository institution or holding company to 
                default or violate any such term or covenant,
        the depository institution may elect, with the approval of the 
        Corporation, to pay such special assessment in accordance with 
        paragraphs (2) and (3) in lieu of paying such assessment in the 
        manner required under subsection (a).
            (2) First assessment.--An insured depository institution 
        which makes an election under paragraph (1) shall pay an 
        assessment in an amount equal to 50 percent of the amount of 
        the special assessment that would otherwise apply under 
        subsection (a), by the date on which such special assessment is 
        payable under subsection (d).
            (3) Second assessment.--An insured depository institution 
        which makes an election under paragraph (1) shall pay a second 
        assessment, by the date established by the Board of Directors 
        in accordance with paragraph (4), in an amount equal to the 
        product of 51 percent of the rate determined by the Board of 
        Directors under subsection (a) for determining the amount of 
        the special assessment and the SAIF-assessable deposits of the 
        institution on March 31, 1996, or such other date in calendar 
        year 1996 as the Board of Directors determines to be 
        appropriate.
            (4) Due date of second assessment.--The date established by 
        the Board of Directors for the payment of the assessment under 
        paragraph (3) by a depository institution shall be the earliest 
        practicable date which the Board of Directors determines to be 
        appropriate, which is at least 15 days after the date used by 
        the Board of Directors under paragraph (3).
            (5) Supplemental special assessment.--An insured depository 
        institution which makes an election under paragraph (1) shall 
        pay a supplemental special assessment, at the same time the 
        payment under paragraph (3) is made, in an amount equal to the 
        product of--
                    (A) 50 percent of the rate determined by the Board 
                of Directors under subsection (a) for determining the 
                amount of the special assessment; and
                    (B) 95 percent of the amount by which the SAIF-
                assessable deposits used by the Board of Directors for 
                determining the amount of the 1st assessment under 
                paragraph (2) exceeds, if any, the SAIF-assessable 
                deposits used by the Board for determining the amount 
                of the second assessment under paragraph (3).
    (h) Adjustment of Special Assessment for Certain Bank Insurance 
Fund Member Banks.--
            (1) In general.--For purposes of computing the special 
        assessment imposed under this section with respect to a Bank 
        Insurance Fund member bank, the amount of any deposits of any 
        insured depository institution which section 5(d)(3) of the 
        Federal Deposit Insurance Act treats as insured by the Savings 
        Association Insurance Fund shall be reduced by 20 percent--
                    (A) if the adjusted attributable deposit amount of 
                the Bank Insurance Fund member bank is less than 50 
                percent of the total domestic deposits of that member 
                bank as of June 30, 1995; or
                    (B) if, as of June 30, 1995, the Bank Insurance 
                Fund member--
                            (i) had an adjusted attributable deposit 
                        amount equal to less than 75 percent of the 
                        total assessable deposits of that member bank;
                            (ii) had total assessable deposits greater 
                        than $5,000,000,000; and
                            (iii) was owned or controlled by a bank 
                        holding company that owned or controlled 
                        insured depository institutions having an 
                        aggregate amount of deposits insured or treated 
                        as insured by the Bank Insurance Fund greater 
                        than the aggregate amount of deposits insured 
                        or treated as insured by the Savings 
                        Association Insurance Fund.
            (2) Adjusted attributable deposit amount.--For purposes of 
        this subsection, the ``adjusted attributable deposit amount'' 
        shall be determined in accordance with section 5(d)(3)(C) of 
        the Federal Deposit Insurance Act.
    (i) Adjustment to the Adjusted Attributable Deposit Amount for 
Certain Bank Insurance Fund Member Banks.--Section 5(d)(3) of the 
Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended--
            (1) in subparagraph (C), by striking ``The adjusted 
        attributable deposit amount'' and inserting ``Except as 
        provided in subparagraph (K), the adjusted attributable deposit 
        amount''; and
            (2) by adding at the end the following new subparagraph:
                    ``(K) Adjustment of adjusted attributable deposit 
                amount.--The amount determined under subparagraph 
                (C)(i) for deposits acquired by March 31, 1995, shall 
                be reduced by 20 percent for purposes of computing the 
                adjusted attributable deposit amount for the payment of 
                any assessment for any semiannual period that begins 
                after the date of the enactment of the Deposit 
                Insurance Funds Act of 1996 (other than the special 
                assessment imposed under section 802(a) of such Act), 
                for a Bank Insurance Fund member bank that, as of June 
                30, 1995--
                            ``(i) had an adjusted attributable deposit 
                        amount that was less than 50 percent of the 
                        total deposits of that member bank; or
                            ``(ii)(I) had an adjusted attributable 
                        deposit amount equal to less than 75 percent of 
                        the total assessable deposits of that member 
                        bank;
                            ``(II) had total assessable deposits 
                        greater than $5,000,000,000; and
                            ``(III) was owned or controlled by a bank 
                        holding company that owned or controlled 
                        insured depository institutions having an 
                        aggregate amount of deposits insured or treated 
                        as insured by the Bank Insurance Fund greater 
                        than the aggregate amount of deposits insured 
                        or treated as insured by the Savings 
                        Association Insurance Fund.''.
    (j) Adjustment of Special Assessment for Certain Savings 
Associations.--
            (1) Special assessment reduction.--For purposes of 
        computing the special assessment imposed under this section, in 
        the case of any converted association, the amount of any 
        deposits of such association which were insured by the Savings 
        Association Insurance Fund as of March 31, 1995, shall be 
        reduced by 20 percent.
            (2) Converted association.--For purposes of this 
        subsection, the term ``converted association'' means--
                    (A) any Federal savings association--
                            (i) that is a member of the Savings 
                        Association Insurance Fund and that has 
                        deposits subject to assessment by that fund 
                        which did not exceed $4,000,000,000, as of 
                        March 31, 1995; and
                            (ii) that had been, or is a successor by 
                        merger, acquisition, or otherwise to an 
                        institution that had been, a State savings 
                        bank, the deposits of which were insured by the 
                        Federal Deposit Insurance Corporation before 
                        August 9, 1989, that converted to a Federal 
                        savings association pursuant to section 5(i) of 
                        the Home Owners' Loan Act before January 1, 
                        1985;
                    (B) a State depository institution that is a member 
                of the Savings Association Insurance Fund that had been 
                a State savings bank before October 15, 1982, and was a 
                Federal savings association on August 9, 1989;
                    (C) an insured bank that--
                            (i) was established de novo in order to 
                        acquire the deposits of a savings association 
                        in default or in danger of default;
                            (ii) did not open for business before 
                        acquiring the deposits of such savings 
                        association; and
                            (iii) was a Savings Association Insurance 
                        Fund member before the date of enactment of 
                        this Act; and
                    (D) an insured bank that--
                            (i) resulted from a savings association 
                        before December 19, 1991, in accordance with 
                        section 5(d)(2)(G) of the Federal Deposit 
                        Insurance Act; and
                            (ii) had an increase in its capital in 
                        conjunction with the conversion in an amount 
                        equal to more than 75 percent of the capital of 
                        the institution on the day before the date of 
                        the conversion.
    (k) Exemption for Certain Institutions Paying Exit and Entrance 
Fees.--The Board of Directors of the Federal Deposit Insurance 
Corporation may, in the sole discretion of the Board of Directors, 
exempt any insured depository institution from paying the special 
assessment imposed under subsection (a) if--
            (1) the institution participated in a conversion 
        transaction pursuant to section 5(d)(2)(C) of the Federal 
        Deposit Insurance Act during the period beginning on March 31, 
        1995, and ending on the date of the enactment of this Act;
            (2) exit and entrance fees have been assessed in connection 
        with such conversion transaction in accordance with 
        subparagraphs (E) and (F) of section 5(d)(2) of the Federal 
        Deposit Insurance Act; and
            (3) as of the date of the enactment of this Act, the 
        institution--
                    (A) has paid, in whole or in part, the amount of 
                such exit and entrance fees; and
                    (B) is obligated to pay the balance of any unpaid 
                portion of any such fee in accordance with a schedule 
                agreed to by such Corporation.
    (l) Treatment of Existing Insured Institutions For Purposes of 
State Age Laws.--Section 3(d)(1)(B) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1842(d)(1)(B)) is amended by adding at the end the 
following new clause:
                            ``(iii) Inapplicability to conversions of 
                        insured institutions.--Notwithstanding clause 
                        (i), the Board may approve, pursuant to 
                        subparagraph (A), the acquisition of a bank 
                        which has been formed as the result of the 
                        conversion of an existing insured institution 
                        subsidiary of a savings and loan holding 
                        company to a bank charter, if the existing 
                        insured depository institution subsidiary, 
                        directly or through 1 or more predecessor 
                        insured institutions (whether by merger, 
                        acquisition, or otherwise), has been in 
                        existence for at least 5 years before such 
                        acquisition.''.
    (m) Deposit of Fees Into SAIF.--
            (1) In general.--Section 5(d)(2)(E)(i) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1815(d)(2)(E)(i)) is amended 
        by striking ``subparagraph (F)) which--'' and all that follows 
        through the semicolon at the end and inserting ``subparagraph 
        (F)) which shall be deposited in the Savings Association 
        Insurance Fund before the calculation of the special assessment 
        under section 802 of the Deposit Insurance Funds Act of 
        1996;''.
            (2) Treatment of prior fees.--All fees collected by the 
        Federal Deposit Insurance Corporation pursuant to section 
        5(d)(2)(E)(i) of the Federal Deposit Insurance Act before the 
        date of the enactment of this Act which are held by the 
        Corporation as of such date shall be deposited in the Savings 
        Association Insurance Fund in accordance with such section, as 
        amended by paragraph (1) of this subsection.

SEC. 803. FINANCING CORPORATION FUNDING.

    (a) In General.--Section 21 of the Federal Home Loan Bank Act (12 
U.S.C. 1441) is amended--
            (1) in subsection (f)(2)--
                    (A) in the matter immediately preceding 
                subparagraph (A)--
                            (i) by striking ``To the extent the amounts 
                        available pursuant to paragraph (1) are 
                        insufficient to cover the amount of interest 
                        payments, issuance costs, and custodial fees,'' 
                        and inserting ``In addition to the amounts 
                        obtained pursuant to paragraph (1),'';
                            (ii) by striking ``Savings Association 
                        Insurance Fund member'' and inserting ``insured 
                        depository institution''; and
                            (iii) by striking ``members'' and inserting 
                        ``institutions''; and
                    (B) by striking ``, except that--'' and all that 
                follows through the end of the paragraph and inserting 
                ``, except that--
                    ``(A) the assessments imposed on insured depository 
                institutions with respect to any BIF-assessable deposit 
                shall be assessed at a rate equal to \1/5\ of the rate 
                of the assessments imposed on insured depository 
                institutions with respect to any SAIF-assessable 
                deposit; and
                    ``(B) no limitation under clause (i) or (iii) of 
                section 7(b)(2)(A) of the Federal Deposit Insurance Act 
                shall apply for purposes of this paragraph.''; and
            (2) in subsection (k)--
                    (A) by striking ``section--'' and inserting 
                ``section, the following definitions shall apply:'';
                    (B) by striking paragraph (1);
                    (C) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(3) Insured depository institution.--The term `insured 
        depository institution' has the same meaning as in section 3 of 
        the Federal Deposit Insurance Act
            ``(4) Deposit terms.--
                    ``(A) BIF-assessable deposits.--The term `BIF-
                assessable deposit' means a deposit that is subject to 
                assessment for purposes of the Bank Insurance Fund 
                under the Federal Deposit Insurance Act (including a 
                deposit that is treated as a deposit insured by the 
                Bank Insurance Fund under section 5(d)(3) of the 
                Federal Deposit Insurance Act).
                    ``(B) SAIF-assessable deposit.--The term `SAIF-
                assessable deposit' has the meaning given to such term 
                in section 810 of the Deposit Insurance Funds Act of 
                1996.''.
    (b) Conforming Amendment.--Section 7(b)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)) is amended by striking 
subparagraph (D).
    (c) Effective Date.--
            (1) In general.--Subsections (a) and (c) and the amendments 
        made by such subsections shall apply with respect to semiannual 
        periods which begin after December 31, 1996.
            (2) Termination of certain assessment rates.--Subparagraph 
        (A) of section 21(f)(2) of the Federal Home Loan Bank Act (as 
        amended by subsection (a)) shall not apply after the earlier 
        of--
                    (A) December 31, 1999; or
                    (B) the date as of which the last savings 
                association ceases to exist.
    (d) Prohibition on Deposit Shifting.--
            (1) In general.--Effective as of the date of the enactment 
        of this Act and ending on the date provided in subsection 
        (c)(2) of this section, the Comptroller of the Currency, the 
        Board of Directors of the Federal Deposit Insurance 
        Corporation, the Board of Governors of the Federal Reserve 
        System, and the Director of the Office of Thrift Supervision 
        shall take such actions as are necessary, including enforcement 
        actions, denial of applications, or imposition of entrance and 
        exit fees as if such transactions qualified as conversion 
        transactions pursuant to section 5(d) of the Federal Deposit 
        Insurance Act, to prevent insured depository institutions and 
        depository institution holding companies from facilitating or 
        encouraging the shifting of deposits from SAIF-assessable 
        deposits to BIF-assessable deposits (as defined in section 
        21(k) of the Federal Home Loan Bank Act) for the purpose of 
        evading the assessments imposed on insured depository 
        institutions with respect to SAIF-assessable deposits under 
        section 7(b) of the Federal Deposit Insurance Act and section 
        21(f)(2) of the Federal Home Loan Bank Act.
            (2) Regulations.--The Board of Directors of the Federal 
        Deposit Insurance Corporation may issue regulations, including 
        regulations defining terms used in paragraph (1), to prevent 
        the shifting of deposits described in such paragraph.
            (3) Rule of construction.--No provision of this subsection 
        shall be construed as prohibiting conduct or activity of any 
        insured depository institution which--
                    (A) is undertaken in the ordinary course of 
                business of such depository institution; and
                    (B) is not directed towards the depositors of an 
                insured depository institution affiliate (as defined in 
                section 2(k) of the Financial Services Holding Company 
                Act of 1996) of such depository institution.

SEC. 804. MERGER OF BIF AND SAIF.

    (a) In General.--
            (1) Merger.--The Bank Insurance Fund and the Savings 
        Association Insurance Fund shall be merged into the Deposit 
        Insurance Fund established by section 11(a)(4) of the Federal 
        Deposit Insurance Act, as amended by this section.
            (2) Disposition of assets and liabilities.--All assets and 
        liabilities of the Bank Insurance Fund and the Savings 
        Association Insurance Fund shall be transferred to the Deposit 
        Insurance Fund.
            (3) No separate existence.--The separate existence of the 
        Bank Insurance Fund and the Savings Association Insurance Fund 
        shall cease.
    (b) Special Reserve of the Deposit Insurance Fund.--
            (1) In general.--Immediately before the merger of the Bank 
        Insurance Fund and the Savings Association Insurance Fund, if 
        the reserve ratio of the Savings Association Insurance Fund 
        exceeds the designated reserve ratio, the amount by which that 
        reserve ratio exceeds the designated reserve ratio shall be 
        placed in the Special Reserve of the Deposit Insurance Fund, 
        established under section 11(a)(5) of the Federal Deposit 
        Insurance Act, as amended by this section.
            (2) Definition.--For purposes of this subsection, the term 
        ``reserve ratio'' means the ratio of the net worth of the 
        Savings Association Insurance Fund to the aggregate estimated 
        amount of deposits insured by the Savings Association Insurance 
        Fund.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective on January 1, 1999, if no insured 
depository institution is a savings association on that date.
    (d) Technical and Conforming Amendments.--
            (1) Deposit insurance fund.--Section 11(a)(4) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is 
        amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C);
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Establishment.--There is established the 
                Deposit Insurance Fund, which the Corporation shall--
                            ``(i) maintain and administer;
                            ``(ii) use to carry out its insurance 
                        purposes in the manner provided by this 
                        subsection; and
                            ``(iii) invest in accordance with section 
                        13(a).
                    ``(B) Uses.--The Deposit Insurance Fund shall be 
                available to the Corporation for use with respect to 
                Deposit Insurance Fund members.''; and
                    (C) by striking ``(4) General provisions relating 
                to funds.--'' and inserting the following:
            ``(4) Establishment of the deposit insurance fund.--''.
            (2) Other references.--Section 11(a)(4)(C) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated 
        by paragraph (1) of this subsection) is amended by striking 
        ``Bank Insurance Fund and the Savings Association Insurance 
        Fund'' and inserting ``Deposit Insurance Fund''.
            (3) Deposits into fund.--Section 11(a)(4) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by 
        adding at the end the following new subparagraph:
                    ``(D) Deposits.--All amounts assessed against 
                insured depository institutions by the Corporation 
                shall be deposited in the Deposit Insurance Fund.''.
            (4) Special reserve of deposits.--Section 11(a)(5) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended 
        to read as follows:
            ``(5) Special reserve of deposit insurance fund.--
                    ``(A) Establishment.--
                            ``(i) In general.--There is established a 
                        Special Reserve of the Deposit Insurance Fund, 
                        which shall be administered by the Corporation 
                        and shall be invested in accordance with 
                        section 13(a).
                            ``(ii) Limitation.--The Corporation shall 
                        not provide any assessment credit, refund, or 
                        other payment from any amount in the Special 
                        Reserve.
                    ``(B) Emergency use of special reserve.--
                Notwithstanding subparagraph (A)(ii), the Corporation 
                may, in its sole discretion, transfer amounts from the 
                Special Reserve to the Deposit Insurance Fund, for the 
                purposes set forth in paragraph (4), only if--
                            ``(i) the reserve ratio of the Deposit 
                        Insurance Fund is less than 50 percent of the 
                        designated reserve ratio; and
                            ``(ii) the Corporation expects the reserve 
                        ratio of the Deposit Insurance Fund to remain 
                        at less than 50 percent of the designated 
                        reserve ratio for each of the next 4 calendar 
                        quarters.
                    ``(C) Exclusion of special reserve in calculating 
                reserve ratio.--Notwithstanding any other provision of 
                law, any amounts in the Special Reserve shall be 
                excluded in calculating the reserve ratio of the 
                Deposit Insurance Fund under section 7.''.
            (5) Federal home loan bank act.--Section 21B(f)(2)(C)(ii) 
        of the Federal Home Loan Bank Act (12 U.S.C. 
        1441b(f)(2)(C)(ii)) is amended--
                    (A) in subclause (I), by striking ``to Savings 
                Associations Insurance Fund members'' and inserting 
                ``to insured depository institutions, and their 
                successors, which were Savings Association Insurance 
                Fund members on September 1, 1995''; and
                    (B) in subclause (II), by striking ``to Savings 
                Associations Insurance Fund members'' and inserting 
                ``to insured depository institutions, and their 
                successors, which were Savings Association Insurance 
                Fund members on September 1, 1995''.
            (6) Repeals.--
                    (A) Section 3.--Section 3(y) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813(y)) is amended to read as 
                follows:
    ``(y) Definitions Relating to the Deposit Insurance Fund.--
            ``(1) Deposit insurance fund.--The term `Deposit Insurance 
        Fund' means the fund established under section 11(a)(4).
            ``(2) Reserve ratio.--The term `reserve ratio' means the 
        ratio of the net worth of the Deposit Insurance Fund to 
        aggregate estimated insured deposits held in all insured 
        depository institutions.
            ``(3) Designated reserve ratio.--The designated reserve 
        ratio of the Deposit Insurance Fund for each year shall be--
                    ``(A) 1.25 percent of estimated insured deposits; 
                or
                    ``(B) a higher percentage of estimated insured 
                deposits that the Board of Directors determines to be 
                justified for that year by circumstances raising a 
                significant risk of substantial future losses to the 
                fund.
                    (B) Section 7.--Section 7 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1817) is amended--
                            (i) by striking subsection (l);
                            (ii) by redesignating subsections (m) and 
                        (n) as subsections (l) and (m), respectively;
                            (iii) in subsection (b)(2), by striking 
                        subparagraphs (B) and (F), and by redesignating 
                        subparagraphs (C), (E), (G), and (H) as 
                        subparagraphs (B) through (E), respectively.
                    (C) Section 11.--Section 11(a) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--
                            (i) by striking paragraphs (6) and (7); and
                            (ii) by redesignating paragraph (8) as 
                        paragraph (6).
            (7) Section 5136 of the revised statutes.--The paragraph 
        designated the ``Eleventh'' of section 5136 of the Revised 
        Statutes (12 U.S.C. 24) is amended in the fifth sentence, by 
        striking ``affected deposit insurance fund'' and inserting 
        ``Deposit Insurance Fund''.
            (8) Investments promoting public welfare; limitations on 
        aggregate investments.--The twenty-third undesignated paragraph 
        of section 9 of the Federal Reserve Act (12 U.S.C. 338a) is 
        amended in the 4th sentence, by striking ``affected deposit 
        insurance fund'' and inserting ``Deposit Insurance Fund''.
            (9) Advances to critically undercapitalized depository 
        institutions.--Section 10B(b)(3)(A)(ii) of the Federal Reserve 
        Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking ``any 
        deposit insurance fund in'' and inserting ``the Deposit 
        Insurance Fund of''.
            (10) Amendments to the balanced budget and emergency 
        deficit control act of 1985.--Section 255(g)(1)(A) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 905(g)(1)(A)) is amended--
                    (A) by striking ``Bank Insurance Fund'' and 
                inserting ``Deposit Insurance Fund''; and
                    (B) by striking ``Federal Deposit Insurance 
                Corporation, Savings Association Insurance Fund;''.
            (11) Further amendments to the federal home loan bank 
        act.--The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) 
        is amended--
                    (A) in section 11(k) (12 U.S.C. 1431(k))--
                            (i) in the subsection heading, by striking 
                        ``SAIF'' and inserting ``the Deposit Insurance 
                        Fund''; and
                            (ii) by striking ``Savings Association 
                        Insurance Fund'' each place such term appears 
                        and inserting ``Deposit Insurance Fund'';
                    (B) in section 21A(b)(4)(B) (12 U.S.C. 
                1441a(b)(4)(B)), by striking ``affected deposit 
                insurance fund'' and inserting ``Deposit Insurance 
                Fund'';
                    (C) in section 21A(b)(6)(B) (12 U.S.C. 
                1441a(b)(6)(B))--
                            (i) in the subparagraph heading, by 
                        striking ``SAIF-insured banks'' and inserting 
                        ``Charter conversions''; and
                            (ii) by striking ``Savings Association 
                        Insurance Fund member'' and inserting ``savings 
                        association'';
                    (D) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 
                1441a(b)(10)(A)(iv)(II)), by striking ``Savings 
                Association Insurance Fund'' and inserting ``Deposit 
                Insurance Fund'';
                    (E) in section 21B(e) (12 U.S.C. 1441b(e))--
                            (i) in paragraph (5), by inserting ``as of 
                        the date of funding'' after ``Savings 
                        Association Insurance Fund members'' each place 
                        such term appears;
                            (ii) by striking paragraph (7); and
                            (iii) by redesignating paragraph (8) as 
                        paragraph (7); and
                    (F) in section 21B(k) (12 U.S.C. 1441b(k))--
                            (i) by striking paragraph (8); and
                            (ii) by redesignating paragraphs (9) and 
                        (10) as paragraphs (8) and (9), respectively.
            (12) Amendments to the home owners' loan act.--The Home 
        Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
                    (A) in section 5--
                            (i) in subsection (c)(5)(A), by striking 
                        ``that is a member of the Bank Insurance 
                        Fund'';
                            (ii) in subsection (c)(6), by striking ``As 
                        used in this subsection--'' and inserting ``For 
                        purposes of this subsection, the following 
                        definitions shall apply:'';
                            (iii) in subsection (o)(1), by striking 
                        ``that is a Bank Insurance Fund member'';
                            (iv) in subsection (o)(2)(A), by striking 
                        ``a Bank Insurance Fund member until such time 
                        as it changes its status to a Savings 
                        Association Insurance Fund member'' and 
                        inserting ``insured by the Deposit Insurance 
                        Fund'';
                            (v) in subsection (t)(5)(D)(iii)(II), by 
                        striking ``affected deposit insurance fund'' 
                        and inserting ``Deposit Insurance Fund'';
                            (vi) in subsection (t)(7)(C)(i)(I), by 
                        striking ``affected deposit insurance fund'' 
                        and inserting ``Deposit Insurance Fund''; and
                            (vii) in subsection (v)(2)(A)(i), by 
                        striking ``, the Savings Association Insurance 
                        Fund'' and inserting ``or the Deposit Insurance 
                        Fund''; and
                    (B) in section 10--
                            (i) in subsection (e)(1)(A)(iii)(VII), by 
                        adding ``or'' at the end;
                            (ii) in subsection (e)(1)(A)(iv), by adding 
                        ``and'' at the end;
                            (iii) in subsection (e)(1)(B), by striking 
                        ``Savings Association Insurance Fund or Bank 
                        Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund'';
                            (iv) in subsection (e)(2), by striking 
                        ``Savings Association Insurance Fund or the 
                        Bank Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund''; and
                            (v) in subsection (m)(3), by striking 
                        subparagraph (E), and by redesignating 
                        subparagraphs (F), (G), and (H) as 
                        subparagraphs (E), (F), and (G), respectively.
            (13) Amendments to the national housing act.--The National 
        Housing Act (12 U.S.C. 1701 et seq.) is amended--
                    (A) in section 317(b)(1)(B) (12 U.S.C. 
                1723i(b)(1)(B)), by striking ``Bank Insurance Fund for 
                banks or through the Savings Association Insurance Fund 
                for savings associations'' and inserting ``Deposit 
                Insurance Fund''; and
                    (B) in section 526(b)(1)(B)(ii) (12 U.S.C. 1735f-
                14(b)(1)(B)(ii)), by striking ``Bank Insurance Fund for 
                banks and through the Savings Association Insurance 
                Fund for savings associations'' and inserting ``Deposit 
                Insurance Fund''.
            (14) Further amendments to the federal deposit insurance 
        act.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et 
        seq.) is amended--
                    (A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by 
                striking subparagraph (B) and inserting the following:
                    ``(B) includes any former savings association.'';
                    (B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by 
                striking ``the Bank Insurance Fund or the Savings 
                Association Insurance Fund;'' and inserting ``Deposit 
                Insurance Fund,'';
                    (C) in section 5(d) (12 U.S.C. 1815(d)), by 
                striking paragraphs (2) and (3);
                    (D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--
                            (i) in subparagraph (A), by striking 
                        ``reserve ratios in the Bank Insurance Fund and 
                        the Savings Association Insurance Fund'' and 
                        inserting ``the reserve ratio of the Deposit 
                        Insurance Fund'';
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
            ``(2) Fee credited to the deposit insurance fund.--The fee 
        paid by the depository institution under paragraph (1) shall be 
        credited to the Deposit Insurance Fund.'';
                            (iii) by striking ``(1) Uninsured 
                        institutions.--''; and
                            (iv) by redesignating subparagraphs (A) and 
                        (C) as paragraphs (1) and (3), respectively, 
                        and moving the margins 2 ems to the left;
                    (E) in section 5(e) (12 U.S.C. 1815(e))--
                            (i) in paragraph (5)(A), by striking ``Bank 
                        Insurance Fund or the Savings Association 
                        Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund'';
                            (ii) by striking paragraph (6); and
                            (iii) by redesignating paragraphs (7), (8), 
                        and (9) as paragraphs (6), (7), and (8), 
                        respectively;
                    (F) in section 6(5) (12 U.S.C. 1816(5)), by 
                striking ``Bank Insurance Fund or the Savings 
                Association Insurance Fund'' and inserting ``Deposit 
                Insurance Fund'';
                    (G) in section 7(b) (12 U.S.C. 1817(b))--
                            (i) in paragraph (1)(D), by striking ``each 
                        deposit insurance fund'' and inserting ``the 
                        Deposit Insurance Fund'';
                            (ii) in clauses (i)(I) and (iv) of 
                        paragraph (2)(A), by striking ``each deposit 
                        insurance fund'' each place such term appears 
                        and inserting ``the Deposit Insurance Fund'';
                            (iii) in paragraph (2)(A)(iii), by striking 
                        ``a deposit insurance fund'' and inserting 
                        ``the Deposit Insurance Fund'';
                            (iv) by striking clause (iv) of paragraph 
                        (2)(A);
                            (v) in paragraph (2)(C) (as redesignated by 
                        paragraph (6)(B) of this subsection)--
                                    (I) by striking ``any deposit 
                                insurance fund'' and inserting ``the 
                                Deposit Insurance Fund''; and
                                    (II) by striking ``that fund'' each 
                                place such term appears and inserting 
                                ``the Deposit Insurance Fund'';
                            (vi) in paragraph (2)(D) (as redesignated 
                        by paragraph (6)(B) of this subsection)--
                                    (I) in the subparagraph heading, by 
                                striking ``funds achieve'' and 
                                inserting ``fund achieves''; and
                                    (II) by striking ``a deposit 
                                insurance fund'' and inserting ``the 
                                Deposit Insurance Fund'';
                            (vii) in paragraph (3)--
                                    (I) in the paragraph heading, by 
                                striking ``funds'' and inserting 
                                ``fund'';
                                    (II) by striking ``members of that 
                                fund'' where such term appears in the 
                                portion of subparagraph (A) which 
                                precedes clause (i) of such 
                                subparagraph and inserting ``insured 
                                depository institutions'';
                                    (III) by striking ``that fund'' 
                                each place such term appears (other 
                                than in connection with term amended in 
                                subclause (II) of this clause) and 
                                inserting ``the Deposit Insurance 
                                Fund'';
                                    (IV) in subparagraph (A), by 
                                striking ``Except as provided in 
                                paragraph (2)(F), if'' and inserting 
                                ``If'';
                                    (V) in subparagraph (A), by 
                                striking ``any deposit insurance fund'' 
                                and inserting ``the Deposit Insurance 
                                Fund''; and
                                    (VI) by striking subparagraphs (C) 
                                and (D) and inserting the following:
                    ``(C) Amending schedule.--The Corporation may, by 
                regulation, amend a schedule promulgated under 
                subparagraph (B).''; and
                            (viii) in paragraph (6)--
                                    (I) by striking ``any such 
                                assessment'' and inserting ``any such 
                                assessment is necessary'';
                                    (II) by striking ``(A) is 
                                necessary--'';
                                    (III) by striking subparagraph (B);
                                    (IV) by redesignating clauses (i), 
                                (ii), and (iii) as subparagraphs (A), 
                                (B), and (C), respectively, and moving 
                                the margins 2 ems to the left; and
                                    (V) in subparagraph (C) (as 
                                redesignated), by striking ``; and'' 
                                and inserting a period;
                    (H) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by 
                striking ``, except that--'' and all that follows 
                through the end of the paragraph and inserting a 
                period;
                    (I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--
                            (i) by striking subparagraph (B);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                            (iii) in subparagraph (B) (as 
                        redesignated), by striking ``subparagraphs (A) 
                        and (B)'' and inserting ``subparagraph (A)'';
                    (J) in section 11A(a) (12 U.S.C. 1821a(a))--
                            (i) in paragraph (2), by striking 
                        ``liabilities.--'' and all that follows through 
                        ``Except'' and inserting ``liabilities.--
                        Except'';
                            (ii) by striking paragraph (2)(B); and
                            (iii) in paragraph (3), by striking ``the 
                        Bank Insurance Fund, the Savings Association 
                        Insurance Fund,'' and inserting ``the Deposit 
                        Insurance Fund'';
                    (K) in section 11A(b) (12 U.S.C. 1821a(b)), by 
                striking paragraph (4);
                    (L) in section 11A(f) (12 U.S.C. 1821a(f)), by 
                striking ``Savings Association Insurance Fund'' and 
                inserting ``Deposit Insurance Fund'';
                    (M) in section 13 (12 U.S.C. 1823)--
                            (i) in subsection (a)(1), by striking 
                        ``Bank Insurance Fund, the Savings Association 
                        Insurance Fund,'' and inserting ``Deposit 
                        Insurance Fund, the Special Reserve of the 
                        Deposit Insurance Fund,'';
                            (ii) in subsection (c)(4)(E)--
                                    (I) in the subparagraph heading, by 
                                striking ``funds'' and inserting 
                                ``fund''; and
                                    (II) in clause (i), by striking 
                                ``any insurance fund'' and inserting 
                                ``the Deposit Insurance Fund'';
                            (iii) in subsection (c)(4)(G)(ii)--
                                    (I) by striking ``appropriate 
                                insurance fund'' and inserting 
                                ``Deposit Insurance Fund'';
                                    (II) by striking ``the members of 
                                the insurance fund (of which such 
                                institution is a member)'' and 
                                inserting ``insured depository 
                                institutions'';
                                    (III) by striking ``each member's'' 
                                and inserting ``each insured depository 
                                institution's''; and
                                    (IV) by striking ``the member's'' 
                                each place such term appears and 
                                inserting ``the institution's'';
                            (iv) in subsection (c), by striking 
                        paragraph (11);
                            (v) in subsection (h), by striking ``Bank 
                        Insurance Fund'' and inserting ``Deposit 
                        Insurance Fund'';
                            (vi) in subsection (k)(4)(B)(i), by 
                        striking ``Savings Association Insurance Fund'' 
                        and inserting ``Deposit Insurance Fund''; and
                            (vii) in subsection (k)(5)(A), by striking 
                        ``Savings Association Insurance Fund'' and 
                        inserting ``Deposit Insurance Fund'';
                    (N) in section 14(a) (12 U.S.C. 1824(a)) in the 5th 
                sentence--
                            (i) by striking ``Bank Insurance Fund or 
                        the Savings Association Insurance Fund'' and 
                        inserting ``Deposit Insurance Fund''; and
                            (ii) by striking ``each such fund'' and 
                        inserting ``the Deposit Insurance Fund'';
                    (O) in section 14(b) (12 U.S.C. 1824(b)), by 
                striking ``Bank Insurance Fund or Savings Association 
                Insurance Fund'' and inserting ``Deposit Insurance 
                Fund'';
                    (P) in section 14(c) (12 U.S.C. 1824(c)), by 
                striking paragraph (3);
                    (Q) in section 14(d) (12 U.S.C. 1824(d))--
                            (i) by striking ``BIF'' each place such 
                        term appears and inserting ``DIF''; and
                            (ii) by striking ``Bank Insurance Fund'' 
                        each place such term appears and inserting 
                        ``Deposit Insurance Fund'';
                    (R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--
                            (i) by striking ``the Bank Insurance Fund 
                        or Savings Association Insurance Fund, 
                        respectively'' each place such term appears and 
                        inserting ``the Deposit Insurance Fund''; and
                            (ii) in subparagraph (B), by striking ``the 
                        Bank Insurance Fund or the Savings Association 
                        Insurance Fund, respectively'' and inserting 
                        ``the Deposit Insurance Fund'';
                    (S) in section 17(a) (12 U.S.C. 1827(a))--
                            (i) in the subsection heading, by striking 
                        ``BIF, SAIF,'' and inserting ``the Deposit 
                        Insurance Fund''; and
                            (ii) in paragraph (1), by striking ``the 
                        Bank Insurance Fund, the Savings Association 
                        Insurance Fund,'' each place such term appears 
                        and inserting ``the Deposit Insurance Fund'';
                    (T) in section 17(d) (12 U.S.C. 1827(d)), by 
                striking ``the Bank Insurance Fund, the Savings 
                Association Insurance Fund,'' each place such term 
                appears and inserting ``the Deposit Insurance Fund'';
                    (U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--
                            (i) by striking ``Savings Association 
                        Insurance Fund'' each place such term appears 
                        and inserting ``Deposit Insurance Fund''; and
                            (ii) in subparagraph (C), by striking ``or 
                        the Bank Insurance Fund'';
                    (V) in section 18(p) (12 U.S.C. 1828(p)), by 
                striking ``deposit insurance funds'' and inserting 
                ``Deposit Insurance Fund'';
                    (W) in section 24 (12 U.S.C. 1831a) in subsections 
                (a)(1) and (d)(1)(A), by striking ``appropriate deposit 
                insurance fund'' each place such term appears and 
                inserting ``Deposit Insurance Fund'';
                    (X) in section 28 (12 U.S.C. 1831e), by striking 
                ``affected deposit insurance fund'' each place such 
                term appears and inserting ``Deposit Insurance Fund'';
                    (Y) by striking section 31 (12 U.S.C. 1831h);
                    (Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by 
                striking ``affected deposit insurance fund'' and 
                inserting ``Deposit Insurance Fund'';
                    (AA) in section 38(a) (12 U.S.C. 1831o(a)) in the 
                subsection heading, by striking ``Funds'' and inserting 
                ``Fund'';
                    (BB) in section 38(k) (12 U.S.C. 1831o(k))--
                            (i) in paragraph (1), by striking ``a 
                        deposit insurance fund'' and inserting ``the 
                        Deposit Insurance Fund''; and
                            (ii) in paragraph (2)(A)--
                                    (I) by striking ``A deposit 
                                insurance fund'' and inserting ``The 
                                Deposit Insurance Fund''; and
                                    (II) by striking ``the deposit 
                                insurance fund's outlays'' and 
                                inserting ``the outlays of the Deposit 
                                Insurance Fund''; and
                    (CC) in section 38(o) (12 U.S.C. 1831o(o))--
                            (i) by striking ``Associations.--'' and all 
                        that follows through ``Subsections (e)(2)'' and 
                        inserting ``Associations.--Subsections 
                        (e)(2)'';
                            (ii) by redesignating subparagraphs (A), 
                        (B), and (C) as paragraphs (1), (2), and (3), 
                        respectively, and moving the margins 2 ems to 
                        the left; and
                            (iii) in paragraph (1) (as redesignated), 
                        by redesignating clauses (i) and (ii) as 
                        subparagraphs (A) and (B), respectively, and 
                        moving the margins 2 ems to the left.
            (15) Amendments to the financial institutions reform, 
        recovery, and enforcement act of 1989.--The Financial 
        Institutions Reform, Recovery, and Enforcement Act is amended--
                    (A) in section 951(b)(3)(B) (12 U.S.C. 
                1833a(b)(3)(B)), by striking ``Bank Insurance Fund, the 
                Savings Association Insurance Fund,'' and inserting 
                ``Deposit Insurance Fund''; and
                    (B) in section 1112(c)(1)(B) (12 U.S.C. 
                3341(c)(1)(B)), by striking ``Bank Insurance Fund, the 
                Savings Association Insurance Fund,'' and inserting 
``Deposit Insurance Fund''.
            (16) Amendment to the bank enterprise act of 1991.--Section 
        232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C. 
        1834(a)(1)) is amended by striking ``section 7(b)(2)(H)'' and 
        inserting ``section 7(b)(2)(G)''.
            (17) Amendment to the bank holding company act.--Section 
        2(j)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1841(j)(2)) is amended by striking ``Savings Association 
        Insurance Fund'' and inserting ``Deposit Insurance Fund''.

SEC. 805. CREATION OF SAIF SPECIAL RESERVE.

    Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)(6)) is amended by adding at the end the following new 
subparagraph:
            ``(L) Establishment of saif special reserve.--
                    ``(i) Establishment.--If, on January 1, 1999, the 
                reserve ratio of the Savings Association Insurance Fund 
                exceeds the designated reserve ratio, there is 
                established a Special Reserve of the Savings 
                Association Insurance Fund, which shall be administered 
                by the Corporation and shall be invested in accordance 
                with section 13(a).
                    ``(ii) Amounts in special reserve.--If, on January 
                1, 1999, the reserve ratio of the Savings Association 
                Insurance Fund exceeds the designated reserve ratio, 
                the amount by which the reserve ratio exceeds the 
                designated reserve ratio shall be placed in the Special 
                Reserve of the Savings Association Insurance Fund 
                established by clause (i).
                    ``(iii) Limitation.--The Corporation shall not 
                provide any assessment credit, refund, or other payment 
                from any amount in the Special Reserve of the Savings 
                Association Insurance Fund.
                    ``(iv) Emergency use of special reserve.--
                Notwithstanding clause (iii), the Corporation may, in 
                its sole discretion, transfer amounts from the Special 
                Reserve of the Savings Association Insurance Fund to 
                the Savings Association Insurance Fund for the purposes 
                set forth in paragraph (4), only if--
                            ``(I) the reserve ratio of the Savings 
                        Association Insurance Fund is less than 50 
                        percent of the designated reserve ratio; and
                            ``(II) the Corporation expects the reserve 
                        ratio of the Savings Association Insurance Fund 
                        to remain at less than 50 percent of the 
                        designated reserve ratio for each of the next 4 
                        calendar quarters.
                    ``(v) Exclusion of special reserve in calculating 
                reserve ratio.--Notwithstanding any other provision of 
                law, any amounts in the Special Reserve of the Savings 
                Association Insurance Fund shall be excluded in 
                calculating the reserve ratio of the Savings 
                Association Insurance Fund.''.

SEC. 806. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN EXCESS OF 
              DESIGNATED RESERVE AMOUNT.

    Subsection (e) of section 7 of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(e)) is amended to read as follows:
    ``(e) Refunds.--
            ``(1) Overpayments.--In the case of any payment of an 
        assessment (including any assessment made pursuant to section 
        802 of the Deposit Insurance Funds Act of 1996) by an insured 
        depository institution in excess of the amount due to the 
        Corporation, the Corporation may--
                    ``(A) refund the amount of the excess payment to 
                the insured depository institution; or
                    ``(B) credit such excess amount toward the payment 
                of subsequent semiannual assessments until such credit 
                is exhausted.
            ``(2) Balance in insurance fund in excess of designated 
        reserve.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), if, as of the end of any semiannual assessment 
                period beginning after the date of the enactment of the 
                Deposit Insurance Funds Act of 1996, the amount of the 
                actual reserves in--
                            ``(i) the Bank Insurance Fund (until the 
                        merger of such fund into the Deposit Insurance 
                        Fund pursuant to section 804 of the Deposit 
                        Insurance Funds Act of 1996);
                            ``(ii) the Savings Association Insurance 
                        Fund (until the merger of such fund into the 
                        Deposit Insurance Fund pursuant to section 804 
                        of the Deposit Insurance Funds Act of 1996); or
                            ``(iii) the Deposit Insurance Fund (after 
                        the establishment of such fund),
                exceeds the balance required to meet the designated 
                reserve ratio applicable with respect to such fund, 
                such excess amount shall be refunded to insured 
                depository institutions by the Corporation on such 
                basis as the Board of Directors determines to be 
                appropriate, taking into account the factors considered 
                under the risk-based assessment system.
                    ``(B) Refund not to exceed previous semiannual 
                assessment.--
                            ``(i) In general.--The amount of any refund 
                        under this paragraph to any member of a deposit 
                        insurance fund for any semiannual assessment 
                        period may not exceed the total amount of 
                        assessments paid by such member to the 
                        insurance fund with respect to such period.
                            ``(ii) Special assessment.--The amount of 
                        any refund under this paragraph to any Savings 
                        Association Insurance Fund member which is 
                        attributable to the special assessment imposed 
                        under section 802 of the Deposit Insurance 
                        Funds Act of 1996 may not exceed the total 
                        amount of assessments paid by such member to 
                        the Savings Association Insurance Fund with 
                        respect to such assessment.
                    ``(C) Refund limitation for certain institutions.--
                No refund may be made under this paragraph with respect 
                to the amount of any assessment paid for any semiannual 
                assessment period by any insured depository institution 
                described in clause (v) of subsection (b)(2)(A).''.

SEC. 807. ASSESSMENT RATES FOR SAIF MEMBERS MAY NOT BE LESS THAN 
              ASSESSMENT RATES FOR BIF MEMBERS.

    Section 7(b)(2)(C) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(2)(E), as redesignated by section 4(d)(6) of this Act) is 
amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                            ``(iii) notwithstanding any other provision 
                        of this subsection, during the period beginning 
                        on the date of enactment of the Deposit 
                        Insurance Funds Act of 1996, and ending on 
                        December 31, 1998, the assessment rate for a 
                        Savings Association Insurance Fund member may 
                        not be less than the assessment rate for a Bank 
                        Insurance Fund member that poses a comparable 
                        risk to the deposit insurance fund.''.

SEC. 808. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN THE RESERVE 
              RATIO OF A DEPOSIT INSURANCE FUND.

    (a) In General.--Section 7(b)(2)(A)(i) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the matter 
preceding subclause (I) by inserting ``when necessary, and only to the 
extent necessary'' after ``insured depository institutions''.
    (b) Limitation on Assessment.--Section 7(b)(2)(A)(iii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is amended 
to read as follows:
                            ``(iii) Limitation on assessment.--Except 
                        as provided in clause (v), the Board of 
                        Directors shall not set semiannual assessments 
                        with respect to a deposit insurance fund in 
                        excess of the amount needed--
                                    ``(I) to maintain the reserve ratio 
                                of the fund at the designated reserve 
                                ratio; or
                                    ``(II) if the reserve ratio is less 
                                than the designated reserve ratio, to 
                                increase the reserve ratio to the 
                                designated reserve ratio.''.
    (c) Exception to Limitation on Assessments.--Section 7(b)(2)(A) of 
the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)) is amended 
by adding at the end the following new clause:
                            ``(v) Exception to limitation on 
                        assessments.--The Board of Directors may set 
                        semiannual assessments in excess of the amount 
                        permitted under clauses (i) and (iii) with 
                        respect to insured depository institutions that 
                        exhibit financial, operational, or compliance 
                        weaknesses ranging from moderately severe to 
                        unsatisfactory, or are not well capitalized, as 
                        that term is defined in section 38.''.

SEC. 809. TREASURY STUDY OF COMMON DEPOSITORY INSTITUTION CHARTER.

    (a) Study Required.--The Secretary of the Treasury shall conduct a 
study of all issues which the Secretary considers to be relevant with 
respect to the development of a common charter for all insured 
depository institutions (as defined in section 3 of the Federal Deposit 
Insurance Act) and the abolition of separate and distinct charters 
between banks and savings associations.
    (b) Report to the Congress.--
            (1) In general.--The Secretary of the Treasury shall submit 
        a report to the Congress on or before March 31, 1997, 
        containing the findings and conclusions of the Secretary in 
        connection with the study conducted pursuant to subsection (a).
            (2) Detailed analysis and recommendations.--The report 
        under paragraph (1) shall include--
                    (A) a detailed analysis of each issue the Secretary 
                considered relevant to the subject of the study;
                    (B) recommendations of the Secretary with regard to 
                the establishment of a common charter for insured 
                depository institutions (as defined in section 3 of the 
                Federal Deposit Insurance Act); and
                    (C) such recommendations for legislative and 
                administrative action as the Secretary determines to be 
                appropriate to implement the recommendations of the 
                Secretary under subparagraph (B).

SEC. 810. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Bank insurance fund.--The term ``Bank Insurance Fund'' 
        means the fund established pursuant to section (11)(a)(5)(A) of 
        the Federal Deposit Insurance Act, as that section existed on 
        the day before the date of enactment of this Act.
            (2) BIF member, saif member.--The terms ``Bank Insurance 
        Fund member'' and ``Savings Association Insurance Fund member'' 
        have the same meanings as in section 7(l) of the Federal 
        Deposit Insurance Act.
            (3) Various banking terms.--The terms ``bank'', ``Board of 
        Directors'', ``Corporation'', ``insured depository 
        institution'', ``Federal savings association'', ``savings 
        association'', ``State savings bank'', and ``State depository 
        institution'' have the same meanings as in section 3 of the 
        Federal Deposit Insurance Act.
            (4) Deposit insurance fund.--The term ``Deposit Insurance 
        Fund'' means the fund established under section 11(a)(4) of the 
        Federal Deposit Insurance Act (as amended by section 804(d) of 
        this title).
            (5) Depository institution holding company.--The term 
        ``depository institution holding company'' has the same meaning 
        as in section 3 of the Federal Deposit Insurance Act.
            (6) Designated reserve ratio.--The term ``designated 
        reserve ratio'' has the same meaning as in section 
        7(b)(2)(A)(iv) of the Federal Deposit Insurance Act.
            (7) SAIF.--The term ``Savings Association Insurance Fund'' 
        means the fund established pursuant to section 11(a)(6)(A) of 
        the Federal Deposit Insurance Act, as that section existed on 
        the day before the date of enactment of this Act.
            (8) SAIF-assessable deposit.--The term ``SAIF-assessable 
        deposit''--
                    (A) means a deposit that is subject to assessment 
                for purposes of the Savings Association Insurance Fund 
                under the Federal Deposit Insurance Act (including a 
                deposit that is treated as insured by the Savings 
                Association Insurance Fund under section 5(d)(3) of the 
                Federal Deposit Insurance Act); and
                    (B) includes any deposit described in subparagraph 
                (A) which is assumed after March 31, 1995, if the 
                insured depository institution, the deposits of which 
                are assumed, is not an insured depository institution 
                when the special assessment is imposed under section 
                2(a).
                                 <all>