[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 650 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 650

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 30 (legislative day, March 27), 1995

Mr. Shelby (for himself, Mr. Mack, Mr. D'Amato, Mr. Bryan, Mr. Bennett, 
   Mr. Faircloth, Mr. Bond, Mr. Gramm, and Mr. Dole) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic Growth 
and Regulatory Paperwork Reduction Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
            TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

                 Subtitle A--The Home Mortgage Process

            Part I--Regulatory Simplification and Uniformity

Sec. 101. Coordination of the Truth in Lending Act and the Real Estate 
                            Settlement Procedures Act.
Sec. 102. Elimination of redundant regulators.
Sec. 103. General exemption authority for loans.
Sec. 104. Reductions in Real Estate Settlement Procedures Act 
                            regulatory burdens.
     Part II--Clarifications to Reduce Costs and Regulatory Burdens

Sec. 111. Exemption for certain borrowers.
Sec. 112. Alternative disclosures for adjustable rate mortgages.
Sec. 113. Treatment of certain charges.
Sec. 114. Exemptions from rescission.
Sec. 115. Tolerances; basis of disclosures.
Sec. 116. Limitation on liability.
Sec. 117. Limitation on rescission period.
Sec. 118. Assignee liability.
Sec. 119. Modification of waiver of right of rescission.
Sec. 120. Applicability.
    Subtitle B--Amendments to the Community Reinvestment Act of 1977

Sec. 131. Expression of congressional intention.
Sec. 132. Small bank exemption.
Sec. 133. Community input and conclusive rating.
Sec. 134. Special purpose banks.
Sec. 135. Increased incentives to lending to low- and moderate-income 
                            communities.
                  Subtitle C--Payment of Interest Act

Sec. 141. Payment of Interest Act.
              TITLE II--STREAMLINING GOVERNMENT REGULATION

    Subtitle A--Eliminating Unnecessary Regulatory Requirements and 
                               Procedures

Sec. 201. Streamlining of prior approval requirement for certain 
                            acquisitions.
Sec. 202. Elimination of certain filing and approval requirements for 
                            certain insured depository institutions.
Sec. 203. Elimination of redundant approval requirement for OAKAR 
                            transactions.
Sec. 204. Elimination of unnecessary branch applications.
Sec. 205. Elimination of duplicative requirements imposed upon bank 
                            holding companies under the Home Owners' 
                            Loan Act.
Sec. 206. Elimination of the per branch capital requirement for 
                            national banks and State member banks.
Sec. 207. Elimination of branch application requirements for automatic 
                            teller machines.
Sec. 208. Elimination of requirement for approval of investments in 
                            bank premises for well capitalized and well 
                            managed banks.
Sec. 209. Elimination of approval requirement for divestitures.
Sec. 210. Elimination of unnecessary filing for officer and director 
                            appointments.
Sec. 211. Amendments to the Depository Institutions Management 
                            Interlocks Act.
Sec. 212. Elimination of recordkeeping and reporting requirements for 
                            officers.
Sec. 213. Abolition of Appraisal Subcommittee; transfer of functions.
Sec. 214. Branch closures.
Sec. 215. Foreign banks.
    Subtitle B--Eliminating Unnecessary Costs and Paperwork Burdens

Sec. 221. Small bank examination cycle.
Sec. 222. Reimbursement for corporate records.
Sec. 223. Required regulatory review of regulations.
       Subtitle C--Eliminating Unnecessary Reporting Requirements

Sec. 231. Prohibition on additional reporting under Community 
                            Reinvestment Act of 1977.
Sec. 232. Exemption from community support requirements of the Federal 
                            Home Loan Bank Act for institutions meeting 
                            certain criteria.
Sec. 233. Recording requirements.
Sec. 234. Identification of nonbank financial institution customers.
Sec. 235. Repeal of commercial loan reporting requirements.
Sec. 236. Increase in Home Mortgage Disclosure Act; disclosure 
                            exemption.
Sec. 237. Elimination of stock loan reporting requirement.
                 Subtitle D--Regulatory Micromanagement

Sec. 241. National bank directors.
Sec. 242. Paperwork reduction review.
Sec. 243. State bank representation on Board of Directors of the FDIC.
 TITLE III--REGULATORY IMPACT ON COST OF CREDIT AND CREDIT AVAILABILITY

  Subtitle A--Lowering Compliance Costs To Promote Credit Availability

Sec. 301. Audit costs.
Sec. 302. Incentives for self-testing.
Sec. 303. Exemption for savings institutions serving military 
                            personnel.
Sec. 304. Qualified thrift investment amendments.
Sec. 305. Daylight overdrafts incurred by Federal home loan banks.
Sec. 306. Application for membership in the Federal home loan bank 
                            system.
Sec. 307. Authority for Federal home loan banks to select external 
                            auditors.
Sec. 308. Limited purpose bank growth cap relief.
                Subtitle B--Disincentives to Risk-Taking

Sec. 311. Due process protections.
            Subtitle C--Miscellaneous Nonsupervisory Reforms

Sec. 321. Liability for unauthorized use of credit cards.
Sec. 322. Unauthorized electronic fund transfers.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Appraisal Subcommittee'' means the Appraisal 
        Subcommittee established under section 1011 of the Federal 
        Financial Institutions Examination Council Act of 1978 (as in 
        existence prior to the date of enactment of this Act);
            (2) the term ``appropriate Federal banking agency'' has the 
        same meaning as in section 3 of the Federal Deposit Insurance 
        Act;
            (3) the term ``Council'' means the Federal Financial 
        Institutions Examination Council established under section 1004 
        of the Federal Financial Institutions Examination Council Act 
        of 1978;
            (4) the term ``insured depository institution'' has the 
        same meaning as in section 3 of the Federal Deposit Insurance 
        Act; and
            (5) the term ``insured credit union'' has the same meaning 
        as in section 101 of the Federal Credit Union Act.

            TITLE I--REDUCTIONS IN GOVERNMENT OVERREGULATION

                 Subtitle A--The Home Mortgage Process

            PART I--REGULATORY SIMPLIFICATION AND UNIFORMITY

SEC. 101. COORDINATION OF THE TRUTH IN LENDING ACT AND THE REAL ESTATE 
              SETTLEMENT PROCEDURES ACT.

    (a) Amendments to Truth in Lending Act.--Section 105 of the Truth 
in Lending Act (15 U.S.C. 1604) is amended by adding at the end the 
following new subsection:
    ``(e) Authority To Eliminate, Modify, or Simplify Disclosure 
Requirements.--The Board shall, by regulation, eliminate, modify, or 
simplify any disclosure required by this title, including the content 
and timing of the disclosure, if such action would make disclosures and 
timing of disclosures required by this title uniform with other laws 
relating to the disclosure of information in connection with credit 
transactions, including the Real Estate Settlement Procedures Act. No 
disclosure requirement may be imposed under this subsection unless such 
requirement would have the effect of eliminating, modifying, or 
simplifying any disclosure required under this title.''.
    (b) Amendments to Real Estate Settlement Procedures Act.--Section 
19 of the Real Estate Settlement Procedures Act (12 U.S.C. 2617) is 
amended by adding at the end the following new subsection:
    ``(d) Authority To Eliminate, Modify, or Simplify Disclosure 
Requirements.--The Board shall, by regulation, eliminate, modify, or 
simplify any disclosure required by this title, including the content 
and timing of the disclosure, if such action would make disclosures and 
timing of disclosures required by this title uniform with other laws 
relating to the disclosure of information in connection with credit 
transactions, including the Truth in Lending Act. No disclosure 
requirement may be imposed under this subsection unless such 
requirement would have the effect of eliminating, modifying, or 
simplifying any disclosure required under this title.''.

SEC. 102. ELIMINATION OF REDUNDANT REGULATORS.

    (a) Definition.--Section 3 of the Real Estate Settlement Procedures 
Act (12 U.S.C. 2602) is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) the term `Board' means the Board of Governors of the 
        Federal Reserve System.''.
    (b) Conforming Amendments.--The Real Estate Settlement Procedures 
Act (12 U.S.C. 2601 et seq.) is amended--
            (1) in section 4, by striking ``Secretary'' each place such 
        term appears and inserting ``Board'';
            (2) in section 5, by striking ``Secretary'' each place such 
        term appears and inserting ``Board'';
            (3) in section 6, by striking ``Secretary'' each place such 
        term appears and inserting ``Board'';
            (4) in section 8--
                    (A) in subsection (c), by striking ``the 
                Secretary,'' and inserting ``the Board,''; and
                    (B) in subsection (d), by striking ``Secretary'' 
                each place such term appears and inserting ``Board'';
            (5) in section 10, by striking ``Secretary'' each place 
        such term appears and inserting ``Board'';
            (6) in section 13, by striking ``Secretary'' and inserting 
        ``Board'';
            (7) in section 15--
                    (A) by striking ``Secretary'' each place such term 
                appears and inserting ``Board''; and
                    (B) by striking ``the Secretary's assessment'' and 
                inserting ``the assessment of the Board'';
            (8) in section 16, by striking ``Secretary'' each place 
        such term appears and inserting ``Board''; and
            (9) in section 18, by striking ``Secretary'' each place 
        such term appears and inserting ``Board''.
    (c) Regulations.--Section 19(a) of the Real Estate Settlement 
Procedures Act (12 U.S.C. 2617) is amended to read as follows:
    ``(a) Regulations.--
            ``(1) In general.--The Board shall prescribe such 
        regulations as may be necessary to carry out this title.
            ``(2) Specifications.--The regulations promulgated under 
        paragraph (1)--
                    ``(A) may contain such classifications, 
                differentiations, or other provisions, and may provide 
                for such adjustments and exceptions for any class of 
                transactions, as the Board determines to be necessary 
                or proper to--
                            ``(i) effectuate the purposes of this 
                        title;
                            ``(ii) prevent circumvention or evasion of 
                        this title; or
                            ``(iii) facilitate compliance with this 
                        title; and
                    ``(B) shall minimize the burdens and cost imposed 
                upon creditors and shall ensure that costs, burdens, 
                and complexities to consumers are reduced.''.
    (d) Administrative Enforcement.--The Real Estate Settlement 
Procedures Act (12 U.S.C. 2601 et seq.) is amended by adding at the end 
the following new section:

``SEC. 20. ADMINISTRATIVE ENFORCEMENT.

    ``(a) In General.--Compliance with the requirements imposed under 
this title shall be enforced under--
            ``(1) section 8 of the Federal Deposit Insurance Act, with 
        respect to--
                    ``(A) any national bank or any Federal branch or 
                Federal agency of a foreign bank, by the Office of the 
                Comptroller of the Currency;
                    ``(B) any member bank of the Federal Reserve System 
                (other than a national bank), any branch or agency of a 
                foreign bank (other than a Federal branch or Federal 
                agency, or insured State branch of a foreign bank), any 
                commercial lending company owned or controlled by one 
                or more foreign banks, or any organization operating 
                under section 25 or 25A of the Federal Reserve Act, by 
                the Board;
                    ``(C) any bank insured under the Federal Deposit 
                Insurance Act (other than a member of the Federal 
                Reserve System) or any insured State branch of a 
                foreign bank, by the Board of Directors of the Federal 
                Deposit Insurance Corporation; and
                    ``(D) any savings association the deposits of which 
                are insured under the Federal Deposit Insurance Act, by 
                the Director of the Office of Thrift Supervision;
            ``(2) the Federal Credit Union Act, by the Administrator of 
        the National Credit Union Administration with respect to any 
        Federal credit union;
            ``(3) the Packers and Stockyards Act, 1921 (except as 
        provided in section 406 of such Act), by the Secretary of 
        Agriculture with respect to any activities subject to such Act; 
        and
            ``(4) the Farm Credit Act of 1971, by the Farm Credit 
        Administration with respect to any institution referred to in 
        section 1.2(a) of that Act.
    ``(b) Definitions.--Each term in subsection (a)(1) that is not 
defined in this title shall have the same meaning as in section 1(b) of 
the International Banking Act of 1978.
    ``(c) Additional Enforcement Powers.--
            ``(1) Violations.--For the purpose of the exercise by any 
        agency referred to in subsection (a) of the powers of the 
        agency under any Act referred to in that subsection, a 
        violation of any requirement imposed under this title shall be 
        deemed to be a violation of a requirement imposed under that 
        Act.
            ``(2) Powers.--In addition to the powers of the agency 
        under any provision of law specifically referred to in 
        subsection (a), each agency referred to in that subsection may 
        exercise, for the purpose of enforcing compliance with any 
        requirement imposed under this title, any other authority 
        conferred on the agency by law.
            ``(3) Regulations by agencies other than the board.--The 
        authority of the Board to promulgate regulations under this 
        title does not impair the authority of any other agency 
        referred to in subsection (a) to make rules regarding the 
        procedures of the Board in enforcing compliance with the 
        requirements imposed under this title.
    ``(d) FTC Enforcement.--
            ``(1) In general.--Except to the extent that the 
        enforcement of the requirements imposed under this title is 
        specifically committed to another agency of the Federal 
        Government under subsection (a), the Federal Trade Commission 
        shall enforce such requirements.
            ``(2) Violations.--For the purpose of the exercise by the 
        Federal Trade Commission of the functions and powers of the 
        Commission under the Federal Trade Commission Act, a violation 
        of any requirement imposed under this title shall be deemed to 
        be a violation of a requirement imposed under that Act.
            ``(3) Functions and powers.--All of the functions and 
        powers of the Federal Trade Commission under the Federal Trade 
        Commission Act are available to the Federal Trade Commission to 
        enforce compliance by any person with the requirements imposed 
        under this title, regardless of whether or not the person is 
        engaged in commerce or meets any other jurisdictional tests in 
        the Federal Trade Commission Act.''.

SEC. 103. GENERAL EXEMPTION AUTHORITY FOR LOANS.

    (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 rule, determines 
        that coverage under this title is not necessary to carry out 
        the purposes of this title.''.
    (b) Exemption Authority.--Section 105 of the Truth in Lending Act 
(15 U.S.C. 1604) is amended by adding at the end the following new 
subsection:
    ``(f) Exemption Authority.--
            ``(1) In general.--The Board shall exempt from all or part 
        of this title any class of transactions for which, in the 
        determination of the Board, coverage under all or part of this 
        title does not provide a measurable benefit to consumers in the 
        form of useful information or protection.
            ``(2) Factors for consideration.--In determining which 
        classes of transactions to exempt in whole or in part under 
        paragraph (1), the Board shall consider, among other factors--
                    ``(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, 
                as determined by the Board;
                    ``(B) whether the requirements of this title 
                complicate, hinder, or make more expensive the credit 
                process for the class of transactions; and
                    ``(C) the status of the borrower, including--
                            ``(i) the related financial arrangements of 
                        the borrower, as determined by the Board;
                            ``(ii) the financial sophistication of the 
                        borrower relative to the type of transaction; 
                        and
                            ``(iii) the importance to the borrower of 
                        the credit and related supporting property, as 
                        determined by the Board.''.

SEC. 104. REDUCTIONS IN REAL ESTATE SETTLEMENT PROCEDURES ACT 
              REGULATORY BURDENS.

    (a) Unnecessary Disclosure.--Section 6(a) of the Real Estate 
Settlement Procedures Act (12 U.S.C. 2605) is amended to read as 
follows:
    ``(a) Disclosure to Applicant Relating to Assignment, Sale, or 
Transfer of Loan Servicing.--Each person who makes a federally related 
mortgage loan shall disclose to each person who applies for the loan, 
at the time of application for the loan, whether the servicing of the 
loan may be assigned, sold, or transferred to any other person at any 
time while the loan is outstanding.''.
    (b) Second Mortgages.--Section 3(1)(A) of the Real Estate 
Settlement Procedures Act (12 U.S.C. 2602(1)(A)) is amended by striking 
``or subordinate''.
    (c) Consistency of Real Estate Settlement Procedures Act and Truth 
in Lending Act Exemption of Business Loans.--Section 7 of the Real 
Estate Settlement Procedures Act (12 U.S.C. 2606) is amended--
            (1) by striking ``This Act'' and inserting the following:
    ``(a) In General.--This Act''; and
            (2) by adding at the end the following new subsection:
    ``(b) Interpretation.--In promulgating regulations under section 
19(a), the Board shall ensure that, with respect to subsection (a), the 
exemption for business credit includes all `business credit' exempted 
from the Truth in Lending Act, as such term is interpreted by the 
Board.''.

     PART II--CLARIFICATIONS TO REDUCE COSTS AND REGULATORY BURDENS

SEC. 111. EXEMPTION FOR CERTAIN BORROWERS.

    Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended 
by adding at the end the following new paragraph:
            ``(8) Credit transactions involving consumers with an 
        annual earned income of more than $200,000 or having net assets 
        in excess of $1,000,000 at the time of the transaction.''.

SEC. 112. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

    (a) Open End Consumer Credit Plans.--Section 127A(a)(2)(G) of the 
Truth in Lending Act (15 U.S.C. 1637a(a)(2)(G)) is amended by inserting 
before the semicolon the following: ``, or a statement that the monthly 
payment may increase or decrease significantly due to increases in the 
annual percentage rate''.
    (b) Technical 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) Consumer Credit Not Under Open End Credit Plan.--Section 128(a) 
of the Truth in Lending Act (15 U.S.C. 1638(a)) is amended by adding at 
the end the following new paragraph:
            ``(14) In any variable interest rate residential mortgage 
        transaction, at the option of the creditors, a statement that 
        the monthly payment may increase or decrease substantially, or 
        an historical example illustrating the effects of interest rate 
        changes implemented according to the loan program.''.

SEC. 113. TREATMENT OF CERTAIN CHARGES.

    (a) Third Party Fees.--Section 106(a) of the Truth in Lending Act 
(15 U.S.C. 1605(a)) is amended by inserting after the second sentence 
the following new sentence: ``The finance charge shall not include fees 
and amounts imposed by third party closing agents (including settlement 
agents, attorneys, and escrow and title companies) if the creditor does 
not expressly require the imposition of the charges and does not retain 
the charges.''.
    (b) Taxes on Security Instruments or Evidences of Indebtedness.--
Section 106(d) of the Truth in Lending Act (15 U.S.C. 1605(d)) is 
amended by adding at the end the following new paragraph:
            ``(3) Any tax levied on security instruments or on 
        documents evidencing indebtedness, if the payment of such tax 
        is a precondition for recording the instrument securing the 
        evidence of indebtedness.''.
    (c) Preparation of Loan Documents.--Section 106(e)(2) of the Truth 
in Lending Act (15 U.S.C. 1605(e)(2)) is amended to read as follows:
            ``(2) Fees for preparation of loan-related documents and 
        attending or conducting settlement.''.
    (d) Applicability.--The amendments made by subsections (a) and (b) 
shall apply to all extensions of credit with respect to which 
rescission rights have not been asserted as of January 4, 1995.

SEC. 114. EXEMPTIONS FROM RESCISSION.

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

SEC. 115. TOLERANCES; BASIS OF DISCLOSURES.

    (a) Tolerances for Accuracy.--Section 106 of the Truth in Lending 
Act (15 U.S.C. 1605) is amended by adding at the end the following new 
subsection:
    ``(f) Tolerance for Accuracy.--In connection with any consumer 
credit transaction not under an open end credit plan that is secured by 
real property or a dwelling, the disclosure of the finance charge and 
other disclosures affected by any finance charge shall be treated as 
being accurate for purposes of this title if the amount disclosed as 
the finance charge does not vary from the actual finance charge by more 
than $100.''.
    (b) Basis of Disclosure for Per Diem Interest.--Section 121(c) of 
the Truth in Lending Act (15 U.S.C. 1631(c)) is amended by adding at 
the end the following new sentence: ``In the case of any consumer 
credit transaction, a portion of the interest on which is determined on 
a per diem basis and is to be collected upon the consummation of such 
transaction, any disclosure with respect to such portion of interest 
shall be deemed to be accurate for purposes of this title if the 
disclosure is based on reasonably available information known to such 
person at the time that the disclosure documents are being prepared for 
the consummation of the transaction.''.

SEC. 116. LIMITATION ON LIABILITY.

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

``SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.

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

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

SEC. 117. LIMITATION ON RESCISSION PERIOD.

    Section 125(f) of the Truth in Lending Act (15 U.S.C. 1635(f)) is 
amended--
            (1) by striking ``(f) An obligor's right of rescission'' 
        and inserting the following:
    ``(f) Limitation on Rescission Period.--
            ``(1) In general.--The right of rescission of an obligor'';
            (2) by striking ``except that if (1) any agency'' and 
        inserting the following: ``except that if--
                    ``(A) any agency'';
            (3) by striking ``transaction, (2) such agency'' and 
        inserting the following: ``transaction;
                    ``(B) such agency'';
            (4) by striking ``section 125, and (3) the obligor's'' and 
        inserting the following: ``this section; and
                    ``(C) the obligor's''; and
            (5) by adding at the end the following new paragraphs:
            ``(2) Actions affected.--Except as otherwise provided in 
        paragraph (1), the expiration of the right of rescission 
        pursuant to this subsection shall be absolute and no consumer 
        may assert rescission, affirmatively or as a defense, in any 
        action brought under this title in any State or Federal court 
        after the earlier of--
                    ``(A) the expiration of the 3-year period beginning 
                on the date on which the transaction is consummated; or
                    ``(B) the date of the sale of the property securing 
                the loan or other extension of credit.
            ``(3) Preemption of state law.--This subsection shall 
        supersede any State law that is inconsistent with any provision 
        of this subsection.''.

SEC. 118. ASSIGNEE LIABILITY.

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

SEC. 119. MODIFICATION OF WAIVER OF RIGHT OF RESCISSION.

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

SEC. 120. APPLICABILITY.

    Except as provided in section 113(d), the amendments made by this 
part shall apply to all consumer credit transactions consummated on or 
after the date of enactment of this Act.

    Subtitle B--Amendments to the Community Reinvestment Act of 1977

SEC. 131. EXPRESSION OF CONGRESSIONAL INTENTION.

    Section 802(b) of the Community Reinvestment Act of 1977 (12 U.S.C. 
2901(b)) is amended to read as follows:
    ``(b) It is the purpose of this title to require each appropriate 
Federal financial supervisory agency to use the authority of such 
agency, in examining financial institutions, to encourage such 
institutions to help meet the credit needs of the local communities in 
which they are chartered, consistent with the safe and sound operation 
of such institutions. In examining financial institutions under this 
title, a supervisory agency shall not impose any recordkeeping or 
reporting requirements that do not have the effect of eliminating, 
streamlining, or reducing regulatory burdens upon such institutions.''.

SEC. 132. SMALL BANK EXEMPTION.

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

``SEC. 809. EXEMPT INSTITUTIONS.

    ``This title does not apply to a regulated financial institution 
for a calendar year if, as of the close of the immediately preceding 
calendar year, the total assets of the institution were not more than 
$250,000,000.''.

SEC. 133. COMMUNITY INPUT AND CONCLUSIVE RATING.

    (a) Community Input and Conclusive Rating.--The Community 
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended by 
inserting after section 806 the following new section:

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

    ``(a) Publication of Examination Schedule and Opportunity for 
Comment.--
            ``(1) Publication of list; public comments.--Thirty days 
        prior to the beginning of each calendar quarter, each 
        appropriate Federal financial supervisory agency shall--
                    ``(A) publish in the Federal Register a list of 
                institutions scheduled for examination pursuant to this 
                title during that calendar quarter; and
                    ``(B) provide an opportunity for comments from the 
                community on the performance, under this title, of each 
                institution scheduled for examination.
            ``(2) Receipt of comments.--Any comments submitted under 
        paragraph (1) shall be received by the appropriate Federal 
        financial supervisory agency not later than 30 days after the 
        commencement of the relevant calendar quarter.
    ``(b) Reconsideration of Rating.--
            ``(1) In general.--Upon the filing of a request in 
        accordance with this subsection, the rating of an institution 
        made available to the public in accordance with section 
        807(b)(1)(C) may be reconsidered by the appropriate Federal 
        financial supervisory agency.
            ``(2) Specific requirements.--Each request under paragraph 
        (1)--
                    ``(A) shall be made in writing;
                    ``(B) shall be filed with the appropriate Federal 
                financial supervisory agency not later than 30 days 
                after the date on which the rating of the institution 
                is made available to the public in accordance with 
                section 807(b)(1)(C);
                    ``(C) may be filed by the institution or by a 
                member of the community; and
                    ``(D) shall be based on significant issues of a 
                substantive nature that are relevant to the delineated 
                community of the institution and, in the case of a 
                request made by a member of the community, shall be 
                limited to issues previously raised in comments 
                submitted pursuant to subsection (a).
            ``(3) Completion of requested reconsideration.--Not later 
        than 30 days after receiving a request for reconsideration 
        filed in accordance with this subsection, the appropriate 
        Federal financial supervisory agency shall complete the 
        requested reconsideration.
    ``(c) Conclusive Rating.--
            ``(1) In general.--The rating of an institution under 
        section 807(b)(1)(C) shall become conclusive on the later of--
                    ``(A) 30 days after the date on which the rating is 
                made available to the public under that section; or
                    ``(B) the completion of any requested 
                reconsideration by the appropriate Federal financial 
                supervisory agency in accordance with subsection (b).
            ``(2) Effect.--The rating of an institution shall be the 
        conclusive assessment of the record of the institution in 
        meeting the credit needs of the community of the institution 
        for purposes of section 804 until the next rating of the 
        institution, developed pursuant to an examination, becomes 
        conclusive. Each institution that receives a `satisfactory' or 
        `outstanding' rating shall be deemed to have met the purposes 
        of section 804. Notwithstanding any other provision of law, 
        nothing in this subsection shall be construed to grant a cause 
        of action to any person.''.
    (b) Conforming Amendment.--Section 804(a) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903(a)) is amended by inserting 
``conducted in accordance with section 806A,'' after ``financial 
institution,''.

SEC. 134. SPECIAL PURPOSE BANKS.

    (a) Definition.--Section 803 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2902) is amended--
            (1) by redesignating the first paragraph designated as 
        paragraph (2) as subparagraph (D) and indenting accordingly;
            (2) in paragraph (2), by striking ``and'' at the end;
            (3) in paragraph (3), by striking the period at the end and 
        inserting a semicolon;
            (4) in paragraph (4)--
                    (A) by striking ``A financial'' and inserting ``a 
                financial''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (5) by adding at the end the following new paragraph:
            ``(5) the term `special purpose bank' means a bank that 
        does not generally accept deposits from the public in amounts 
        that are less than $100,000, such as a credit card bank or a 
        trust bank.''.
    (b) Assessment of Record of Meeting Community Credit Needs.--
Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) 
is amended--
            (1) by striking the section designation and all that 
        follows through ``In connection with'' and inserting the 
        following:

``SEC. 804. ASSESSMENT OF RECORD OF MEETING COMMUNITY CREDIT NEEDS.

    ``(a) In General.--In connection with''; and
            (2) by adding at the end the following new subsection:
    ``(c) Special Purpose Banks.--In conducting assessments under 
subsection (a) at special purpose banks, each appropriate Federal 
financial supervisory agency shall--
            ``(1) take into consideration the nature of the businesses 
        in which such banks are involved; and
            ``(2) develop standards under which such banks may be 
        deemed to have complied with the requirements of this title 
        that are consistent with the specific nature of such 
        businesses.''.

SEC. 135. INCREASED INCENTIVES TO LENDING TO LOW- AND MODERATE-INCOME 
              COMMUNITIES.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903) is amended by adding at the end the following new subsection:
    ``(d) Lending to Low- and Moderate-Income Communities.--In 
assessing and taking into account the record of a financial institution 
under subsection (a), the appropriate Federal financial supervisory 
agency shall give positive consideration to any investments in and 
loans to joint ventures or entities or projects that provide benefits 
to distressed communities (as such term is defined by the appropriate 
Federal financial supervisory agency) made by the institution, 
regardless of whether or not the communities are located within the 
service area of the financial institution.''.

                  Subtitle C--Payment of Interest Act

SEC. 141. PAYMENT OF INTEREST ACT.

    Subtitle F of title II of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 4301 et seq.) is amended to read as 
follows:

                 ``Subtitle F--Payment of Interest Act

``SEC. 261. SHORT TITLE.

    ``This subtitle may be cited as the `Payment of Interest Act'.

``SEC. 262. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that the Truth in Savings Act 
created unnecessary paperwork, administrative and compliance burdens, 
and liability for depository institutions without enhancing the ability 
of consumers to make informed decisions regarding deposit accounts.
    ``(b) Purpose.--It is the purpose of this subtitle--
            ``(1) to repeal the unnecessary disclosure requirements of 
        the Truth in Savings Act; and
            ``(2) to retain the provisions of the Truth in Savings Act 
        that require that interest be paid on the full amount of the 
        principal in the account for each day of the stated calculation 
        period at the rate or rates of interest disclosed.

``SEC. 263. PAYMENT OF INTEREST.

    ``(a) Calculated on Full Amount of Principal.--Interest on an 
interest-bearing account at any depository institution shall be 
calculated by the institution on the full amount of principal in the 
account for each day of the stated calculation period at the rate or 
rates of interest disclosed by the depository institution.
    ``(b) No Particular Method of Compounding Interest Required.--
Subsection (a) shall not be construed to prohibit or require the use of 
any particular method of compounding or crediting of interest.
    ``(c) Date by Which Interest Shall Accrue.--Interest on accounts 
that are subject to this subtitle shall begin to accrue not later than 
the business day specified for interest-bearing accounts in section 606 
of the Expedited Funds Availability Act, subject to subsections (b) and 
(c) of that section.

``SEC. 264. REGULATIONS.

    ``(a) In General.--
            ``(1) By the board.--The Board, after consultation with 
        each agency referred to in section 265(a) and public notice and 
        opportunity for comment, shall promulgate regulations to carry 
        out this subtitle.
            ``(2) Applicability.--This subtitle does not apply with 
        respect to any depository institution before the effective date 
        of regulations promulgated by the Board under paragraph (1).

``SEC. 265. ADMINISTRATIVE ENFORCEMENT.

    ``(a) In General.--Compliance with the requirements imposed under 
this subtitle shall be enforced under--
            ``(1) section 8 of the Federal Deposit Insurance Act--
                    ``(A) by the appropriate Federal banking agency 
                with respect to any insured depository institution;
                    ``(B) by the Federal Deposit Insurance Corporation 
                with respect to any depository institution described in 
                clause (i), (ii), or (iii) of section 19(b)(1)(A) of 
                the Federal Reserve Act that is not an insured 
                depository institution; and
                    ``(C) by the Director of the Office of Thrift 
                Supervision with respect to any depository institution 
                described in clause (v) and or (vi) of section 
                19(b)(1)(A) of the Federal Reserve Act that is not an 
                insured depository institution; and
            ``(2) the Federal Credit Union Act, by the National Credit 
        Union Administration Board with respect to any depository 
        institution described in section 19(b)(1)(A)(iv) of the Federal 
        Reserve Act.
    ``(b) Additional Enforcement Powers.--
            ``(1) Violations.--For purposes of the exercise by any 
        agency referred to in subsection (a) of the powers of such 
        agency under any Act referred to in such subsection, a 
        violation of a requirement imposed under this title shall be 
        deemed to be a violation of a requirement imposed under that 
        Act.
            ``(2) Powers.--In addition to the powers of any agency 
        referred to in subsection (a) under any provision of law 
        specifically referred to in such subsection, each such agency 
        may exercise, for purposes of enforcing compliance with any 
        requirement imposed under this subtitle, any other authority 
        conferred on such agency by law.
            ``(3) Regulations by agencies other than the board.--The 
        authority of the Board to promulgate regulations under this 
        subtitle does not impair the authority of any other agency 
        referred to in subsection (a) to make rules regarding the 
        procedures of the Board in enforcing compliance with the 
        requirements imposed under this subtitle.

``SEC. 266. CIVIL LIABILITY.

    ``(a) Civil Liability.--Except as otherwise provided in this 
section, any depository institution that fails to comply with any 
requirement imposed under this subtitle or any regulation promulgated 
under this subtitle with respect to any person who is an account holder 
at that institution shall be liable to such person in an amount equal 
to the sum of--
            ``(1) any actual damage sustained by such person as a 
        result of the failure;
            ``(2) such additional amount as the court may allow, except 
        that liability under this subparagraph shall not be less than 
        $100 nor greater than $1,000; and
            ``(3) in the case of any successful action to enforce any 
        liability under paragraph (1), the costs of the action, 
        together with a reasonable attorney's fee, as determined by the 
        court.
    ``(b) Bona Fide Errors.--
            ``(1) In general.--A depository institution may not be held 
        liable in any action brought under this section for a violation 
        of this subtitle if the depository institution demonstrates by 
        a preponderance of the evidence that the violation was not 
        intentional and resulted from a bona fide error, 
        notwithstanding the maintenance of procedures reasonably 
        adopted to avoid any such error.
            ``(2) Examples.--For purposes of paragraph (1), examples of 
        a bona fide error include clerical, calculation, computer 
        malfunction and programming, and printing errors, except that 
        an error of legal judgment with respect to an obligation of a 
        depository institution under this subtitle is not a bona fide 
        error.
    ``(c) Jurisdiction.--Any action under this section may be brought 
in any United States district court, or in any other court of competent 
jurisdiction, not later than 1 year after the date of the occurrence of 
the violation involved.
    ``(d) Reliance on Board Rulings.--No provision of this section 
imposing any liability shall apply to any act done or omitted in good 
faith in conformity with any regulation or order, or any interpretation 
of any regulation or order, of the Board, or in conformity with any 
interpretation or approval by an official or employee of the Board duly 
authorized by the Board to issue such interpretation or approval under 
procedures prescribed by the Board, notwithstanding the fact that after 
such act or omission has occurred, such regulation, order, 
interpretation, or approval is amended, rescinded, or determined by 
judicial or other authority to be invalid for any reason.
    ``(e) Notification of and Adjustment for Errors.--A depository 
institution shall not be liable under this section or section 265 for 
any failure to comply with any requirement imposed under this subtitle 
with respect to any account if--
            ``(1) the depository institution notifies the affected 
        account holder of the failure of such institution to comply 
        with such requirement before--
                    ``(A) the expiration of the 60-day period beginning 
                on the date on which the depository institution 
                discovered the failure to comply;
                    ``(B) any action is instituted against the 
                depository institution by the account holder under this 
                section with respect to such failure to comply; and
                    ``(C) any written notice of such failure to comply 
                is received by the depository institution from the 
                account holder; and
            ``(2) the depository institution makes such adjustments as 
        may be necessary with respect to the account to ensure that 
        interest is paid on the full amount of principal in the account 
        for each day of the stated calculation period at the rate or 
        rates of interest disclosed by the depository institution.
    ``(f) Multiple Interest in 1 Account.--If more than 1 person holds 
an interest in any account--
            ``(1) the minimum and maximum amounts of liability under 
        subsection (a)(2) for any failure to comply with the 
        requirements of this subtitle shall apply with respect to such 
        account; and
            ``(2) the court shall determine the manner in which the 
        amount shall be distributed among such persons.
    ``(g) Continuing Failure To Comply.--
            ``(1) Single violation.--Except as provided in paragraph 
        (2), the continuing failure of any depository institution to 
        pay interest in accordance with section 263 with respect to a 
        particular account shall be treated as a single violation for 
        purposes of determining the amount of any liability of such 
        institution under subsection (a) for such failure to disclose.
            ``(2) Subsequent violation.--The continuing failure of any 
        depository institution to pay interest in accordance with 
        section 263 with respect to a particular account after judgment 
        is rendered in favor of the account holder in connection with a 
        prior failure to pay interest in accordance with section 263 
        with respect to such account shall be treated as a subsequent 
        violation for purposes of determining liability under 
        subsection (a).
            ``(3) Effect on enforcement power.--This subsection does 
        not limit or otherwise affect the enforcement power under 
        section 265 of any agency referred to in section 265(a).

``SEC. 267. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) Account.--The term `account' means any account 
        intended for use by and generally used by a consumer primarily 
        for personal, family, or household purposes that is offered by 
        a depository institution into which a customer deposits funds, 
        including demand accounts, time accounts, negotiable order of 
        withdrawal accounts, and share draft accounts.
            ``(2) Appropriate federal banking agency.--The term 
        `appropriate Federal banking agency' has the same meaning as in 
        section 3 of the Federal Deposit Insurance Act.
            ``(3) Depository institution.--The term `depository 
        institution' has the same meaning as in clauses (i) through 
        (vi) of section 19(b)(1)(A) of the Federal Reserve Act.
            ``(4) Insured depository institution.--The term `insured 
        depository institution' has the same meaning as in section 3 of 
        the Federal Deposit Insurance Act.
            ``(5) Interest.--The term `interest' includes dividends 
        paid with respect to share draft accounts that are accounts 
        within the meaning of paragraph (1).''.

              TITLE II--STREAMLINING GOVERNMENT REGULATION

    Subtitle A--Eliminating Unnecessary Regulatory Requirements and 
                               Procedures

SEC. 201. STREAMLINING OF PRIOR APPROVAL REQUIREMENT FOR CERTAIN 
              ACQUISITIONS.

    (a) Bank Holding Company Act of 1956 Amendments.--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 subsections:
    ``(h) No Approval Required for Certain Transactions.--
Notwithstanding paragraph (3) or (5) of subsection (a), an acquisition 
of shares by a registered bank holding company, or a merger or 
consolidation between registered bank holding companies, shall be 
deemed to be approved at the conclusion of the period specified in 
paragraph (7) if each of the following criteria is met:
            ``(1) Financial and managerial criteria.--
                    ``(A) Well capitalized bank holding company.--Both 
                at the time of and immediately after the proposed 
                transaction, the acquiring bank holding company is well 
                capitalized.
                    ``(B) Well capitalized lead insured depository 
                institution.--Both at the time of and immediately after 
                the proposed transaction, the lead insured depository 
                institution of the acquiring bank holding company is 
                well capitalized.
                    ``(C) Capital of other insured depository 
                institutions.--At the time of the transaction, well 
                capitalized insured depository institutions control not 
                less than 80 percent of the aggregate total risk-
                weighted assets of all insured depository institutions 
                controlled by the acquiring bank holding company.
                    ``(D) No undercapitalized insured depository 
                institutions.--At the time of the transaction, no 
                insured depository institution controlled by the 
                acquiring bank holding company is undercapitalized.
                    ``(E) Well managed.--
                            ``(i) In general.--At the time of the 
                        transaction, the acquiring bank holding 
                        company, the lead insured depository 
                        institution of that bank holding company, and 
                        insured depository institutions that control 
                        not less than 90 percent of the aggregate total 
                        risk-weighted assets of all insured depository 
                        institutions controlled by that bank holding 
                        company are well managed.
                            ``(ii) No poorly managed institutions.--
                                    ``(I) In general.--No insured 
                                depository institution controlled by 
                                the acquiring bank holding company has 
                                1 of the lowest 2 CAMEL composite 
                                ratings under the Uniform Financial 
                                Institutions Rating System (or an 
                                equivalent rating under a comparable 
                                rating system) as of the most recent 
                                examination or most recent review of 
                                the institution by the appropriate 
                                Federal banking agency.
                                    ``(II) Recently acquired 
                                institutions.--Subclause (I) does not 
                                apply to an insured depository 
                                institution acquired by the acquiring 
                                bank holding company during the 12-
                                month period preceding the date of the 
                                proposed transaction, if--
                                            ``(aa) the bank 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
                                            ``(bb) all such insured 
                                        depository institutions 
                                        represent, in the aggregate, 
                                        less than 10 percent of the 
                                        aggregate total risk-weighted 
                                        assets of all of the insured 
                                        depository institutions 
                                        controlled by the bank holding 
                                        company.
                            ``(iii) Adjustment of amounts.--The Board 
                        may, by regulation, adjust the amounts and the 
                        manner in which the percentage of insured 
                        depository institutions is calculated under 
                        clauses (i) and (ii)(II)(bb) if the Board 
                        determines that such adjustment is consistent 
                        with the principles of safety and soundness and 
                        the purposes of this Act.
            ``(2) No unsatisfactory cra ratings.--
                    ``(A) In general.--No insured depository 
                institution controlled by the acquiring bank holding 
                company has a `needs to improve' or `substantial 
                noncompliance' composite rating as of the most recent 
                examination of such institution under the Community 
                Reinvestment Act of 1977.
                    ``(B) Recently acquired institutions.--An insured 
                depository institution acquired by the acquiring bank 
                holding company during the 12-month period preceding 
                the proposed transaction may be excluded for purposes 
                of subparagraph (A) if the bank holding company has 
                developed a plan acceptable to the appropriate Federal 
                banking agency to restore the performance of the 
                institution to at least a `satisfactory' composite 
                rating under the Community Reinvestment Act of 1977.
            ``(3) Competitive criteria.--The consummation of the 
        proposal complies with guidelines established by the Board, by 
        regulation, after consultation with the Attorney General of the 
        United States, that identify proposals that are not likely to 
        have a significantly adverse effect on competition in any 
        relevant financial services market.
            ``(4) Size of acquisition.--
                    ``(A) Limitations.--
                            ``(i) Asset size.--The book value of the 
                        total assets acquired does not exceed 10 
                        percent of the consolidated total risk-weighted 
                        assets of the acquiring bank holding company.
                            ``(ii) Consideration.--The gross 
                        consideration to be paid for the securities or 
                        assets does not exceed 15 percent of the 
                        consolidated Tier 1 capital of the acquiring 
                        bank holding company.
                    ``(B) Adjustment to limitations.--The Board may, by 
                regulation, adjust the limitations established in this 
                paragraph in a manner consistent with the principles of 
                safety and soundness and the purposes of this Act.
            ``(5) Interstate acquisitions.--Approval by the Board of 
        the transaction is not prohibited under subsection (d).
            ``(6) Other considerations.--Approval by the Board of the 
        transaction is not prohibited under subsection (c)(3).
            ``(7) Notification.--The acquiring bank holding company 
        provides written notice to the Board of the transaction, 
        including a description of the terms of the transaction, not 
        later than 15 business days (or such shorter period as 
        established by the Board) prior to consummation of the 
        transaction, and, prior to the conclusion of that period, the 
        Board has not required an application under subsection (a).
    ``(i) Definitions.--For purposes of subsection (h), the following 
definitions shall apply:
            ``(1) Appropriate federal banking agency.--The term 
        `appropriate Federal banking agency' has the same meaning as in 
        section 38(b) of the Federal Deposit Insurance Act.
            ``(2) Capital terms.--
                    ``(A) Insured depository institution.--With respect 
                to an insured depository institution, the terms `well 
                capitalized', `adequately capitalized', and 
                `undercapitalized' have the same meanings as in section 
                38(b) of the Federal Deposit Insurance Act.
                    ``(B) Bank holding company.--
                            ``(i) Adequately capitalized.--A bank 
                        holding company is `adequately capitalized' if 
                        the company meets the required minimum level 
                        for each relevant capital measure established 
                        by the Board for bank holding companies.
                            ``(ii) Well capitalized.--A bank holding 
                        company is `well capitalized' if the company 
                        meets the required capital levels for well 
                        capitalized bank holding companies established 
                        by the Board.
                    ``(C) Other capital terms.--The terms `Tier 1' and 
                `risk-weighted assets' have the same meanings as in the 
                capital guidelines or regulations established by the 
                Board for bank holding companies.
            ``(3) Insured depository institution.--The term `insured 
        depository institution' includes any branch or agency operated 
        in the United States by a foreign bank, as those terms are 
        defined in section 1(b)(7) of the International Banking Act of 
        1978.
            ``(4) Lead insured depository institution.--The term `lead 
        insured depository institution' of a bank holding company means 
        the largest insured depository institution controlled by the 
        bank holding company, based on a comparison of the average 
        total risk-weighted assets of each insured depository 
        institution controlled by that bank holding company during the 
        most recent fiscal year of that bank holding company.
            ``(5) Well managed.--A bank holding company or depository 
        institution is `well managed' if, as of the most recent 
        examination or most recent review of the company or institution 
        by the appropriate Federal banking agency, the company or 
        institution has--
                    ``(A) a CAMEL composite rating of 1 or 2 under the 
                Uniform Financial Institutions Rating System (or an 
                equivalent rating under a comparable rating system); 
                and
                    ``(B) at least a `satisfactory' rating for 
                management.''.

SEC. 202. ELIMINATION OF CERTAIN FILING AND APPROVAL REQUIREMENTS FOR 
              CERTAIN INSURED DEPOSITORY INSTITUTIONS.

    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) Exceptions.--No prior approval is required under 
        paragraph (2) for any merger, consolidation, acquisition of 
        assets, or assumption of liabilities involving only insured 
        depository institutions that are subsidiaries of the same 
        depository institution holding company if--
                    ``(A) the responsible agency would not be 
                prohibited from approving the transaction under section 
                44;
                    ``(B) the acquiring, assuming, or resulting 
                institution complies with all applicable provisions of 
                section 44 as if the merger, consolidation, or 
                acquisition were approved under this subsection; and
                    ``(C) the acquiring, assuming, or resulting 
                institution provides written notification of the 
                transaction to the appropriate Federal banking agency 
                for the institution not later than 10 days prior to 
                consummation of the transaction.''.

SEC. 203. ELIMINATION OF REDUNDANT APPROVAL REQUIREMENT FOR OAKAR 
              TRANSACTIONS.

    Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1815(d)(3)) is amended--
            (1) in subparagraph (A), by striking ``with the prior 
        written approval of the responsible agency under section 
        18(c)(2)'';
            (2) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) Conditions for approval, generally.--A 
                transaction is not authorized under this paragraph 
                unless the acquiring, assuming, or resulting depository 
                institution will meet all applicable capital 
                requirements upon consummation of the transaction.''; 
                and
            (3) by striking subparagraph (G) and redesignating 
        subparagraphs (H) through (J) as subparagraphs (G) through (I), 
        respectively.

SEC. 204. ELIMINATION OF UNNECESSARY BRANCH APPLICATIONS.

    (a) National Bank Branch Applications.--Section 5155(i) of the 
Revised Statutes (12 U.S.C. 36(i)) is amended--
            (1) by striking ``No branch'' and inserting the following:
            ``(1) Approval required.--Except as provided in paragraph 
        (2), no branch''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) No approval required for certain branches.--
        Notwithstanding paragraph (1) of this subsection, subsection 
        (b), or subsection (c), the consent and approval of the 
        Comptroller of the Currency shall not be required for a 
        national banking association to establish and operate, or to 
        retain and operate, a branch or seasonal agency if--
                    ``(A) the association is well capitalized, as such 
                term is defined in section 38(b) of the Federal Deposit 
                Insurance Act and rules adopted by the Comptroller of 
                the Currency thereunder;
                    ``(B) the association has a CAMEL composite rating 
                of 1 or 2 under the Uniform Financial Institutions 
                Rating System (or an equivalent rating under a 
                comparable rating system) as of the most recent 
                examination of such association;
                    ``(C) the association does not have a `needs to 
                improve' or `substantial noncompliance' composite 
                rating as of the most recent examination of the 
                association under the Community Reinvestment Act of 
                1977; and
                    ``(D) the Comptroller of the Currency is otherwise 
                authorized to grant approval under this section for 
                such action at the proposed location.
            ``(3) Establishment by national banking association.--A 
        branch or seasonal agency established by a national banking 
        association under paragraph (2) shall be deemed to have been 
        established and operated pursuant to an application approved 
        under this section.''.
    (b) State Member Bank Branch Applications.--The third undesignated 
paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 321) is 
amended by adding at the end the following: ``Notwithstanding the 2 
preceding 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--
            ``(1) the State member bank is well capitalized, as such 
        term is defined in section 38(b) of the Federal Deposit 
        Insurance Act and rules adopted by the Board thereunder;
            ``(2) the State member bank has a CAMEL composite rating of 
        1 or 2 under the Uniform Financial Institutions Rating System 
        (or an equivalent rating under a comparable rating system) as 
        of the most recent examination of such State member bank;
            ``(3) the State member bank does not have a `needs to 
        improve' or `substantial noncompliance' composite rating as of 
        the most recent examination of the member bank under the 
        Community Reinvestment Act of 1977; and
            ``(4) the Board is authorized to grant approval under this 
        section to such State member bank to establish and operate a 
        branch or seasonal agency at the proposed location.
A branch or seasonal agency established by a State member bank under 
the preceding sentence shall be deemed to have been established and 
operated pursuant to an application approved under this section.''.
    (c) State Nonmember Bank Branch Applications.--Section 18(d) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by adding 
at the end the following new paragraphs:
            ``(5) Application exemption for certain banks.--
        Notwithstanding paragraph (1), the consent of the Corporation 
        shall not be required for a State nonmember insured bank to 
        establish and operate any domestic branch if--
                    ``(A) the bank is well capitalized, as such term is 
                defined in section 38(b) and rules adopted by the 
                Corporation thereunder;
                    ``(B) the bank has a CAMEL composite rating of 1 or 
                2 under the Uniform Financial Institutions Rating 
                System (or an equivalent rating under a comparable 
                rating system) as of the most recent examination of 
                such bank;
                    ``(C) the bank does not have a `needs to improve' 
                or `substantial noncompliance' composite rating as of 
                the most recent examination of such bank under the 
                Community Reinvestment Act of 1977; and
                    ``(D) the Corporation is authorized to give consent 
                under this section to such bank to establish and 
                operate a domestic branch at the proposed location.
            ``(6) Approval granted.--A branch established by a State 
        member bank under paragraph (5) shall be deemed to have been 
        established and operated pursuant to an application approved 
        under this section.''.

SEC. 205. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED UPON BANK 
              HOLDING COMPANIES 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 does 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.''.
    (b) Definition.--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 that directly or 
                        indirectly controls a savings association or 
                        controls any other company that is a savings 
                        and loan holding company.
                            ``(ii) Exclusion.--The term `savings and 
                        loan holding company' does not include a bank 
                        holding company that is registered under, and 
                        subject to, the Bank Holding Company Act of 
                        1956, or to any company directly or indirectly 
                        controlled by such company (other than a 
                        savings association).''.
    (c) Acquisitions.--Section 10(e)(1)(B) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(e)(1)(B)) is amended in the first sentence--
            (1) by striking ``or (ii)'' and inserting ``(ii)''; and
            (2) by inserting after ``group of persons'' the following: 
        ``, or (iii) acquired by a bank holding company that is 
        registered under, and subject to, the Bank Holding Company Act 
        of 1956, or any company controlled by such bank holding 
        company''.

SEC. 206. ELIMINATION OF THE PER BRANCH CAPITAL REQUIREMENT FOR 
              NATIONAL BANKS AND STATE MEMBER BANKS.

    Section 5155(h) of the Revised Statutes (12 U.S.C. 36(h)) is 
amended to read as follows:
    ``(h) [Reserved.]''.

SEC. 207. ELIMINATION OF BRANCH APPLICATION REQUIREMENTS FOR AUTOMATIC 
              TELLER MACHINES.

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

SEC. 208. ELIMINATION OF 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 at the end the following: ``, or if such 
bank has a CAMEL composite rating of 1 or 2 under the Uniform Financial 
Institutions Rating System (or an equivalent rating under a comparable 
rating system) as of the most recent examination of such bank and, both 
before and immediately following the investment or loan, is well 
capitalized (as such term is defined in section 38(b) of the Federal 
Deposit Insurance Act) and the amount of such investment or loan would 
be equal to or less than 150 percent of the capital and surplus of such 
bank''.

SEC. 209. ELIMINATION OF APPROVAL REQUIREMENT FOR DIVESTITURES.

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

SEC. 210. ELIMINATION OF UNNECESSARY FILING FOR OFFICER AND DIRECTOR 
              APPOINTMENTS.

    Section 32 of the Federal Deposit Insurance Act (12 U.S.C. 1831i) 
is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(or such other period, as 
                determined by the appropriate Federal banking agency)'' 
                after ``30 days'';
                    (B) by striking ``if the insured depository 
                institution or depository institution holding company'' 
                and inserting ``if'';
                    (C) by striking paragraphs (1) and (2);
                    (D) by redesignating paragraph (3) as paragraph 
                (1);
                    (E) in paragraph (1), as redesignated--
                            (i) by inserting ``the insured depository 
                        institution or depository institution holding 
                        company'' before ``is not in compliance''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (F) by adding at the end the following new 
                paragraph:
                    ``(G) the agency determines, in connection with the 
                review by the agency of the plan required under section 
                38 or otherwise, that such prior notice is 
                appropriate.''; and
            (2) in subsection (b), by striking ``30-day period'' and 
        inserting ``notice period, not to exceed 90 days.''.

SEC. 211. AMENDMENTS TO THE DEPOSITORY INSTITUTIONS MANAGEMENT 
              INTERLOCKS ACT.

    (a) Dual Service Among Larger Organizations.--Section 204 of the 
Depository Institution Management Interlocks Act (12 U.S.C. 3203) is 
amended--
            (1) by striking ``$1,000,000,000'' and inserting 
        ``$2,500,000,000'';
            (2) by striking ``$500,000,000'' and inserting 
        ``$1,500,000,000''; and
            (3) by adding at the end the following: ``In order to allow 
        for inflation or market changes, the appropriate Federal 
        depository institutions regulatory agencies may, by regulation, 
        adjust, as necessary, the amount of total assets required for 
        depository institutions or depository holding companies under 
        this section.''.
    (b) 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 second sentence; and
            (3) by striking subsection (c).
    (c) 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 that 
        permit service by a management official that would otherwise be 
        prohibited by section 203 or section 204,'' after ``title''; 
        and
            (3) by striking subsections (b) and (c).

SEC. 212. ELIMINATION OF RECORDKEEPING AND REPORTING REQUIREMENTS FOR 
              OFFICERS.

    (a) Permissibility of Employee-wide Benefit Plans.--
            (1) Employee benefit plans.--Section 22(h)(2) of the 
        Federal Reserve Act (12 U.S.C. 375b(2)) is amended--
                    (A) by redesignating subparagraphs (A) through (C) 
                as clauses (i) through (iii), respectively, and 
                indenting accordingly;
                    (B) by striking ``(2) Preferential terms 
                prohibited.--'' and inserting the following:
            ``(2) Preferential terms prohibited.--
                    ``(A) In general.--''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) Exception.--Nothing in this paragraph shall 
                prohibit extensions of credit made pursuant to a 
                benefit or compensation program widely available to 
                employees of the member bank.''.
            (2) Exception for extensions of credit to executive 
        officers and directors of nonbank affiliates.--Section 
        22(h)(8)(B) of the Federal Reserve Act (12 U.S.C. 375b(8)(B)) 
        is amended by striking ``, except as that subparagraph makes 
        applicable paragraph (2),''.
    (b) Recordkeeping Requirements.--Section 22(h)(10) of the Federal 
Reserve Act (12 U.S.C. 375b(10)) is amended--
            (1) by striking ``The Board'' and inserting the following:
                    ``(A) In general.--The Board''; and
            (2) by adding at the end the following new paragraph:
                    ``(B) Recordkeeping requirements.--The regulations 
                prescribed by the Board under subparagraph (A) shall--
                            ``(i) specify the recordkeeping required of 
                        member banks to ensure compliance with this 
                        section; and
                            ``(ii) provide that if a member bank is 
                        determined to be in compliance with such 
                        recordkeeping requirements, such member bank 
                        shall also be determined to be in compliance 
                        with the audit requirement of section 36(e) of 
                        the Federal Deposit Insurance Act.''.
    (c) Reporting Requirements.--Section 22(g) of the Federal Reserve 
Act (12 U.S.C. 375a) is amended by striking paragraphs (6) and (9) and 
redesignating paragraphs (7), (8), and (10) as paragraphs (6), (7), and 
(8), respectively.
    (d) Unnecessary Reports.--Section 7(k) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(k)) is amended to read as follows:
    ``(k) [Reserved.]''.
    (e) Reports Regarding Loans From Correspondent Banks.--Section 
106(b)(2) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 
1972(2)) is amended--
            (1) by striking subparagraph (G); and
            (2) by redesignating subparagraphs (H) and (I) as 
        subparagraphs (G) and (H), respectively.

SEC. 213. ABOLITION OF APPRAISAL SUBCOMMITTEE; TRANSFER OF FUNCTIONS.

    (a) Abolition of Appraisal Subcommittee.--
            (1) Amendment to federal financial institutions examination 
        council act of 1978.--Section 1011 of the Federal Financial 
        Institutions Examination Council Act of 1978 (12 U.S.C. 3310) 
        is repealed.
            (2) Amendments to the financial institutions reform, 
        recovery, and enforcement act of 1989.--
                    (A) Repeals.--The following sections of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 are repealed:
                            (i) Section 1102 (12 U.S.C. 3310).
                            (ii) Section 1104 (12 U.S.C. 3333).
                            (iii) Section 1105 (12 U.S.C. 3334).
                            (iv) Section 1106 (12 U.S.C. 3335).
                            (v) Section 1108 (12 U.S.C. 3337).
                    (B) Definitions.--Section 1121 of the Financial 
                Institutions Reform, Recovery, and Enforcement Act of 
                1989 (12 U.S.C. 3350) is amended--
                            (i) by striking paragraphs (2) and (8);
                            (ii) by redesignating paragraphs (3) 
                        through (7) as paragraphs (2) through (6), 
                        respectively; and
                            (iii) by redesignating paragraphs (9) and 
                        (10) as paragraphs (7) and (8), respectively.
            (3) Conforming amendment to the national housing act.--
        Section 202(e) of the National Housing Act (12 U.S.C. 1708(e)) 
        is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) and 
                paragraphs (2) and (3), respectively.
    (b) Transfer of Functions.--
            (1) Amendments to the financial institutions reform, 
        recovery, and enforcement act of 1989.--
                    (A) Transfer of functions.--Section 1103 of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 3332) is amended--
                            (i) by striking ``sec. 1103.'' and 
                        inserting ``sec. 1102.'';
                            (ii) by striking ``Appraisal Subcommittee'' 
                        each place such term appears and inserting 
                        ``Federal Financial Institutions Examination 
                        Council''; and
                            (iii) in subsection (a)--
                                    (I) in paragraph (3), by inserting 
                                before the semicolon the following: ``, 
                                if the Council determines that 
                                maintaining a national registry under 
                                this paragraph will further the 
                                purposes of this title (as described in 
                                section 1101)''; and
                                    (II) by striking paragraph (4) and 
                                inserting the following:
            ``(4) include in its annual report to the Congress a 
        description of the manner in which the Council has performed 
        the functions assigned to the Council under this title.''.
                    (B) Roster of state certified or licensed 
                appraisers.--Section 1109 of the Financial Institutions 
                Reform, Recovery, and Enforcement Act of 1989 (12 
                U.S.C. 3338) is amended to read as follows:

``SEC. 1104. ROSTER OF STATE CERTIFIED OR LICENSED APPRAISERS.

    ``(a) In General.--Each State that has an appraiser certifying and 
licensing agency with a certification or license that meets the 
requirements of this title shall--
            ``(1) upon request of the Federal Financial Institutions 
        Examination Council, transmit to the Council annually (or at a 
        less frequent interval specified by the Council) a roster 
        listing individuals who have received a State certification or 
        license in accordance with this title;
            ``(2) collect from such individuals who perform or seek to 
        perform appraisals in federally related transactions, an annual 
        registry fee, in an amount determined by the Council, but not 
        to exceed $10 per year, to support the activities of the State 
        under this title; and
            ``(3) transmit all registry fees to the Council on an 
        annual basis.
    ``(b) Status of Fees.--Fees collected and transmitted to the 
Council under subsection (a) shall not be considered to be appropriated 
funds.''.
                    (C) Conforming amendments.--Title XI of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is 
                amended--
                            (i) in section 1116(e)--
                                    (I) by striking ``Appraisal 
                                Subcommittee'' and inserting ``Federal 
                                Financial Institutions Examination 
                                Council''; and
                                    (II) by striking ``the 
                                Subcommittee'' and inserting ``the 
                                Federal Financial Institutions 
                                Examination Council'';
                            (ii) in section 1118--
                                    (I) in the subsection heading, by 
                                striking ``by Appraisal Subcommittee''; 
                                and
                                    (II) by striking ``Appraisal 
                                Subcommittee'' each place such term 
                                appears and inserting ``Federal 
                                Financial Institutions Examination 
                                Council'';
                            (iii) in section 1119--
                                    (I) by striking ``Subject to the 
                                approval of the Council, the Appraisal 
                                Subcommittee'' each place such term 
                                appears and inserting ``The Council''; 
                                and
                                    (II) by striking ``Appraisal 
                                Subcommittee'' each place such term 
                                appears and inserting ``Federal 
                                Financial Institutions Examination 
                                Council'';
                            (iv) in section 1120, by striking 
                        ``Appraisal Subcommittee'' and inserting 
                        ``Federal Financial Institutions Examination 
                        Council'';
                            (v) in section 1122, by striking subsection 
                        (f); and
                            (vi) by redesignating--
                                    (I) section 1107 as section 1103; 
                                and
                                    (II) sections 1109 through 1121 as 
                                sections 1104 through 1116, 
                                respectively.
            (2) Administrative provisions.--
                    (A) Remission of funds to the treasury.--On the 
                date that is 90 days after the date of enactment of 
                this Act, all funds held by, and the right to collect 
                all funds owed to, the Appraisal Subcommittee on the 
                date that is 90 days after the date of enactment of 
                this Act shall be transferred to the Treasury of the 
                United States.
                    (B) Repayment of prepaid registry fees.--Not later 
                than 90 days after the date of enactment of this Act, 
                the Appraisal Subcommittee shall refund to the States 
                any registry fees prepaid to the Appraisal Subcommittee 
                after the date of enactment of this Act.
                    (C) Transfer of employees.--
                            (i) Identifying employees for transfer.--
                        Not later than 30 days after the date of 
                        enactment of this Act, the Council shall 
                        identify for transfer to the Council the 
                        employees of the Appraisal Subcommittee that 
                        the Council determines to be necessary to 
                        perform the functions transferred to the 
                        Council under this subsection.
                            (ii) Transfer date.--On the date that is 90 
                        days after the date of enactment of this Act, 
                        each employee identified for transfer under 
                        clause (i) shall be transferred to the Council.
                    (D) Rights of transferred employees.--
                            (i) Comparable positions.--Each employee 
                        transferred to the Council under subparagraph 
                        (C) shall, on the transfer date specified in 
                        subparagraph (C)(ii), be appointed to a 
                        position under the compensation system and 
                        performance evaluation system of the Council 
                        that is comparable in tenure and grade to the 
                        position held by the employee on the day before 
                        the transfer date specified in subparagraph 
                        (C)(ii).
                            (ii) Pay.--
                                    (I) In general.--Except as provided 
                                in subclause (II), each employee 
                                transferred to the Council under 
                                subparagraph (C) shall, during the 12-
                                month period beginning on the transfer 
                                date specified in subparagraph (C)(ii), 
                                receive pay at a rate not less than the 
                                basic rate of pay that the employee 
                                received during the 12-month period 
                                immediately preceding the transfer date 
                                specified in subparagraph (C)(ii).
                                    (II) Exceptions.--Subclause (I) 
                                does not limit the right of the Council 
                                to reduce a transferred rate of basic 
                                pay of an employer for cause or 
                                unacceptable performance, or with the 
                                consent of the employee.
                                    (III) Protection only while 
                                employed.--Subclause (I) shall apply to 
                                an employee only during the period that 
                                the employee is employed by the 
                                Council.
                            (iii) Retirement benefits.--
                                    (I) Continuation of existing 
                                retirement plan.--Except as otherwise 
                                permitted by law, each employee 
                                transferred to the Council under 
                                subparagraph (C) shall remain enrolled 
                                in the retirement plan (and any 
                                associated thrift savings plan) in 
                                which the employee was enrolled on the 
                                day before the transfer date specified 
                                in subparagraph (C)(ii) during the 
                                period that the employee is employed by 
                                the Council.
                                    (II) Employer contribution.--The 
                                Council shall pay any employer 
                                contributions to the retirement plan in 
                                which each employee transferred to the 
                                Council under subparagraph (C) is 
                                subject during the period that the 
                                employee is employed by the Council, in 
                                accordance with such retirement plan.
                            (iv) No private right of action.--This 
                        subparagraph does not provide any employee with 
                        any right of action to require the Council or 
                        any officer, employee, agent, or administrator 
                        of the Council to take any action under this 
                        subparagraph.
                            (v) Priority of this act.--If any 
                        protection provided under this subparagraph 
                        conflicts with any protection provided to 
                        transferred employees under section 3503 of 
                        title 5, United States Code, the provisions of 
                        this subparagraph shall control.

SEC. 214. BRANCH CLOSURES.

    (a) Amendment to the Federal Deposit Insurance Act.--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) Definitions.--For purposes of this section, the term `branch' 
does not include--
            ``(1) an automated teller machine;
            ``(2) a branch acquired through merger, consolidation, 
        purchase, assumption or other method that is located in a local 
        market area currently served by another branch of the acquiring 
        institution;
            ``(3) a branch that is closed and reopened in another 
        location within the same local market area that would continue 
        to provide banking services to substantially all of the 
        customers currently served by the branch that is closed;
            ``(4) a branch that is closed in connection with--
                    ``(A) an emergency acquisition under--
                            ``(i) section 11(n); or
                            ``(ii) subsection (f) or (k) of section 13; 
                        or
                    ``(B) any assistance provided by the Corporation 
                under section 13(c); or
            ``(5) any other branch closure the exemption of which from 
        the notice requirements of this section would not produce a 
        result inconsistent with the purposes of this section, as 
        determined, by regulation, by the appropriate Federal banking 
        agency.''.
    (b) Effective Date.--The amendment made by this section shall be 
construed to have become effective on the date of enactment of the 
Federal Deposit Insurance Corporation Improvement Act of 1991.

SEC. 215. FOREIGN BANKS.

    (a) Termination of Foreign Branches.--Section 7(e) of the 
International Banking Act of 1978 (12 U.S.C. 3105(e)) is amended--
            (1) by striking the subsection designation and the 
        subsection heading;
            (2) by striking paragraphs (1) through (6);
            (3) by redesignating paragraph (7) as paragraph (5); and
            (4) by inserting before paragraph (5), as redesignated, the 
        following:
    ``(e) Termination of Foreign Bank Offices in the United States.--
            ``(1) Recommendation for termination of foreign bank 
        offices in the united states.--The Board may transmit to the 
        Comptroller of the Currency or to any appropriate State bank 
        supervisor a recommendation that the license of any branch, 
        agency, or commercial bank lending company subsidiary of a 
        foreign bank in the United States be terminated if the Board 
        finds that--
                    ``(A) the foreign bank is not subject to 
                comprehensive supervision or regulation on a 
                consolidated basis by the appropriate authorities in 
                the home country of the foreign bank; or
                    ``(B)(i) there is reasonable cause to believe that 
                such foreign bank, or any affiliate of such foreign 
                bank, has committed a violation of law or engaged in an 
                unsafe or unsound banking practice in the United 
                States; and
                    ``(ii) as a result of such violation or practice, 
                the continued operation of the branch, agency, or 
                commercial lending company subsidiary of the foreign 
                bank in the United States would not be consistent with 
                the public interest or with the purposes of this Act, 
                the Bank Holding Company Act of 1956, or the Federal 
                Deposit Insurance Act.
            ``(2) Notice and hearing.--
                    ``(A) In general.--The Board shall provide notice 
                and opportunity for a hearing to a foreign bank before 
                transmitting to the Comptroller of the Currency or to 
                any appropriate State bank supervisor a recommendation 
                described in paragraph (1).
                    ``(B) Discretion to deny hearing.--The Board may 
                transmit a recommendation under subparagraph (A) 
                without providing for an opportunity for a hearing if 
                the Board determines that expeditious action is 
                necessary in order to protect the public interest.
            ``(3) Compliance with state and federal law.--Any foreign 
        bank that is required to terminate activities conducted at 
        offices of subsidiaries in the United States as a result of a 
        recommendation made under this subsection shall comply with the 
        requirements of applicable Federal and State law with respect 
        to procedures for the closure or dissolution of such offices or 
        subsidiaries.
            ``(4) Enforcement of orders.--
                    ``(A) In general.--The Comptroller of the Currency 
                or the appropriate State bank supervisor may invoke the 
                aid of the district court of the United States within 
                the jurisdiction in which the office or subsidiary is 
                located in case of contumacy of any office or 
                subsidiary of the foreign bank against which--
                            ``(i) the Comptroller of the Currency has 
                        issued an order under section 4(i); or
                            ``(ii) any appropriate State bank 
                        supervisor has issued--
                                    ``(I) an order in response to a 
                                recommendation under paragraph (1); or
                                    ``(II) a refusal by such office or 
                                subsidiary to comply with such order.
                    ``(B) Court order.--Any court referred to in 
                subparagraph (A) may issue an order requiring 
                compliance with an order issued under paragraph (1).''.
    (b) Elimination of Duplicate Examinations of Foreign Banks.--
Section 7(c)(1) of the International Banking Act of 1978 (12 U.S.C. 
3105(c)(1)) is amended by striking subparagraphs (B), (C), and (D) and 
inserting the following:
                    ``(B) Reliance on primary supervisor.--In order to 
                avoid unnecessary duplication and cost, the Board 
                shall, to the maximum extent practicable, rely upon the 
                reports of examinations made by the Comptroller of the 
                Currency, the Federal Deposit Insurance Corporation, or 
                the appropriate State bank supervisor in achieving the 
                purposes of this subsection.
                    ``(C) On-site examination.--Each branch or agency 
                of a foreign bank shall be subject to on-site 
                examination on the same schedule that a comparable 
                national or State nonmember bank would be examined by 
                the Comptroller of the Currency or the Federal Deposit 
                Insurance Corporation.
                    ``(D) Cost of examinations.--The cost of any 
                examination undertaken under subparagraph (A) shall be 
                assessed against and collected from the foreign bank or 
                the foreign company that controls the foreign bank, as 
                applicable, but only to the same extent that fees are 
                collected by the Board for examination of any State 
                member insured bank.''.
    (c) Streamlining Review of Foreign Bank Applications by the 
Board.--Section 7(d) of the International Banking Act of 1978 (12 
U.S.C. 3105(d)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Prior review required.--
                    ``(A) In general.--Before any foreign bank 
                application to establish a branch or an agency, or 
                acquire ownership or control of a commercial lending 
                company may be approved by any appropriate State bank 
                supervisor or the Comptroller of the Currency, the 
                application shall be submitted for review to the Board 
                for a period of not more than 60 days.
                    ``(B) Purpose.--The purpose of the review conducted 
                under subparagraph (A) shall be to determine whether 
                approval of any application would place at risk the 
                safe and sound operation of the United States banking 
                system.
            ``(2) Authority of the board.--Based on the determination 
        described in paragraph (1), the Board may--
                    ``(A) deny the application;
                    ``(B) extend for 60 days the period for review of 
                any application, after providing notice of and the 
                reasons for the extension to the applicant and any 
                appropriate State bank supervisor or the Comptroller of 
                the Currency; or
                    ``(C) approve the application, either by 
                affirmative action or by taking no action during the 
                60-day period described in paragraph (1).''; and
            (2) in paragraph (3)--
                    (A) by redesignating subparagraphs (A) through (D) 
                as subparagraphs (C) through (F); and
                    (B) by striking ``In'' and all that follows through 
                ``account--'' and inserting the following: ``In making 
                any determination under paragraph (1), the Board may 
                consider--
                    ``(A) whether the foreign bank engages directly in 
                the business of banking outside of the United States 
                and is subject to comprehensive supervision or 
                regulation on a consolidated basis by the appropriate 
                authorities in the home country of the foreign bank;
                    ``(B) whether the foreign bank has furnished to the 
                Board the information it needs to adequately assess the 
                application;''.

    Subtitle B--Eliminating Unnecessary Costs and Paperwork Burdens

SEC. 221. SMALL BANK EXAMINATION CYCLE.

    (a) Time Period Discretion.--Section 10(d)(4) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)(4)) is amended--
            (1) in the section heading, by striking ``18-month rule'' 
        and inserting ``24-month rule''; and
            (2) in the first sentence, by striking ``18-month'' and 
        inserting ``24-month''.
    (b) Small Bank Size Discretion.--Section 10(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1820(d)) is amended--
            (1) by redesignating the second paragraph designated as 
        paragraph (8) as paragraph (9); and
            (2) in paragraph (9), as redesignated, by striking 
        ``$175,000,000'' and inserting ``$250,000,000''.

SEC. 222. REIMBURSEMENT FOR CORPORATE RECORDS.

    Section 1115(a) of the Right to Financial Privacy Act of 1978 (12 
U.S.C. 3415) is amended by inserting ``(including any corporate 
customer)'' after ``pertaining to a customer''.

SEC. 223. REQUIRED REGULATORY REVIEW OF REGULATIONS.

    (a) In General.--Not less frequently than once every 10 years, the 
Council and each appropriate Federal banking agency represented on the 
Council shall conduct a review of all regulations promulgated by the 
Council or by any such appropriate Federal banking 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.

       Subtitle C--Eliminating Unnecessary Reporting Requirements

SEC. 231. PROHIBITION ON ADDITIONAL REPORTING UNDER COMMUNITY 
              REINVESTMENT ACT OF 1977.

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

``SEC. 806. REGULATIONS.

    ``(a) In General.--Each appropriate Federal financial supervisory 
agency shall promulgate such regulations as may be necessary to carry 
out this title.
    ``(b) No Additional Recordkeeping Requirements.--The regulations 
promulgated under subsection (a) and any accompanying policy 
statements, commentary, examiner guidances, or other supervisory 
material shall not impose any recordkeeping requirements on financial 
institutions that do not have the effect of eliminating, streamlining, 
or reducing regulatory burdens upon such institutions.
    ``(c) Loan Data.--No loan data may be required to be collected and 
reported by a financial institution and no such data may be made public 
by any Federal financial supervisory agency under this title.''.

SEC. 232. EXEMPTION FROM COMMUNITY SUPPORT REQUIREMENTS OF THE FEDERAL 
              HOME LOAN BANK ACT FOR INSTITUTIONS MEETING CERTAIN 
              CRITERIA.

    Section 10(g) of the Federal Home Loan Bank Act (12 U.S.C. 1430(g)) 
is amended by adding at the end the following new paragraph:
            ``(3) Members excluded.--
                    ``(A) In general.--No rule or regulation 
                promulgated under this subsection that establishes 
                community support requirements shall apply to a member 
                if such member--
                            ``(i) is a regulated financial institution 
                        (as such term is defined in section 803 of the 
                        Community Reinvestment Act of 1977); and
                            ``(ii)(I) has not received a composite 
                        rating of `needs to improve' or `substantial 
                        noncompliance' from the primary regulator of 
                        the member as of the most recent examination of 
                        the member under the Community Reinvestment Act 
                        of 1977; or
                            ``(II) has been in operation for less than 
                        2 years and has not received a rating from the 
                        primary regulator of the member under the 
                        Community Reinvestment Act of 1977.
                    ``(B) Additional requirements.--If a member does 
                not qualify for an exemption under subparagraph (A), 
                the record of the member of lending to first-time 
                homebuyers shall be taken into account in determining 
                compliance with the rules and regulations described in 
                subparagraph (A).''.

SEC. 233. RECORDING REQUIREMENTS.

    Section 5325 of title 31, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``unless--'' and all that follows 
                through the end of paragraph (1) and inserting ``unless 
                the individual has a transaction account with such 
                financial institution and the financial institution 
                verifies that fact through a signature card or other 
                information maintained by such institution in 
                connection with the account of such individual.''; and
                    (B) by striking paragraph (2); and
            (2) in subsection (b), by striking ``paragraph (1) or 
        (2)''.

SEC. 234. IDENTIFICATION OF NONBANK FINANCIAL INSTITUTION CUSTOMERS.

    (a) In General.--Section 5327 of title 31, United States Code, is 
repealed.
    (b) Technical and Conforming Amendment.--Section 5321(a)(7) of 
title 31, United States Code, is repealed.

SEC. 235. REPEAL OF COMMERCIAL LOAN REPORTING REQUIREMENTS.

    The following sections of the Federal Deposit Insurance Corporation 
Improvement Act of 1991 are repealed:
            (1) Section 122 (12 U.S.C. 1817 note).
            (2) Section 477 (12 U.S.C. 251).

SEC. 236. INCREASE IN HOME MORTGAGE DISCLOSURE ACT; DISCLOSURE 
              EXEMPTION.

    (a) In General.--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 adding at the end the following: ``The Board may 
        also exempt from the provisions of this title any institution 
        described in section 303(2)(A) that has total assets of not 
        less than $50,000,000 as of the last complete fiscal year of 
        the institution, if the burden on the institution of complying 
        with this title outweighs the usefulness of the information 
        required to be disclosed.''.
    (b) Opportunity To Reduce Compliance Burden.--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) In general.--
                    ``(A) Satisfaction of public availability 
                requirements.--A depository institution shall be deemed 
                to have satisfied the public availability requirements 
                of subsection (a) if the institution compiles the 
                information required under that subsection at the home 
                office of the institution and provides notice at the 
                branch locations specified in subsection (a) that such 
                information is available from the home office of the 
                institution upon written request.
                    ``(B) Provision of information upon request.--Not 
                later than 15 days after the receipt of the written 
                request for any information required to be compiled 
                under subsection (a), the home office of the depository 
                institution receiving the request shall provide the 
                information pertinent to the location of the branch in 
                question to the person requesting the information.
            ``(2) Form of information.--In complying with paragraph 
        (1), a depository institution shall, in the sole discretion of 
        the institution, provide the person requesting such information 
        with--
                    ``(A) a paper copy of the information requested; or
                    ``(B) if acceptable to the person, the information 
                through a form of electronic medium, such as a computer 
                disk.''.

SEC. 237. ELIMINATION OF STOCK LOAN REPORTING REQUIREMENT.

    Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(j)) is amended--
            (1) by striking paragraphs (9) and (10);
            (2) by redesignating paragraphs (11) through (18) as 
        paragraphs (9) through (16), respectively; and
            (3) in paragraph (9), as redesignated, by striking ``or 
        (9)''.

                 Subtitle D--Regulatory Micromanagement

SEC. 241. NATIONAL BANK DIRECTORS.

    Section 5146 of the Revised Statutes (12 U.S.C. 72) is amended in 
the first sentence, by striking ``except'' and all that follows through 
the end of the sentence and inserting the following: ``except that the 
Comptroller may, in the discretion of the Comptroller, waive the 
requirement of citizenship (in the case of not more than a minority of 
the total number of directors) and the requirement of residency.''.

SEC. 242. 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 Board, in consultation with insured depository 
institutions, insured credit unions, and other interested parties, 
shall--
            (1) review the extent to which existing regulations require 
        insured depository institutions and insured credit unions to 
        produce unnecessary internal written policies; and
            (2) eliminate such requirements, where appropriate.

SEC. 243. STATE BANK REPRESENTATION ON BOARD OF DIRECTORS OF THE FDIC.

    (a) In General.--Section 2(a)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1812(a)(1)) is amended--
            (1) by striking ``5 members'' and inserting ``6 members'';
            (2) in subparagraph (B), by striking ``and'' at the end;
            (3) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following new subparagraph:
                    ``(D) 1 of whom shall be appointed by the 
                President, by and with the advice and consent of the 
                Senate, from among individuals serving as State bank 
                commissioners or supervisors (or the functional 
                equivalent thereof) as of the date on which the 
                appointment is made.''.
    (b) Chairperson and Vice Chairperson.--Section 2(b) of the Federal 
Deposit Insurance Act (12 U.S.C. 1812(b)) is amended--
            (1) in paragraph (1), by striking ``appointed members'' and 
        inserting ``members appointed pursuant to subsection 
        (a)(1)(C)''; and
            (2) in paragraph (2), by striking ``appointed members'' and 
        inserting ``members appointed pursuant to subsection 
        (a)(1)(C)''.
    (c) Terms.--Section 2(c)(1) of the Federal Deposit Insurance Act 
(12 U.S.C. 1812(c)(1)) is amended--
            (1) by striking ``Each appointed member'' and inserting the 
        following:
                    ``(A) In general.--Each member appointed pursuant 
                to subsection (a)(1)(C)''; and
            (2) by adding at the end the following:
                    ``(B) State bank representatives.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), each member appointed pursuant to 
                        subsection (a)(1)(D) shall be appointed for a 
                        single term of 2 years.
                            ``(ii) Exception.--If a member appointed 
                        pursuant to subsection (a)(1)(D) ceases to be a 
                        State banking commissioner or supervisor (or 
                        functional equivalent thereof) on a date prior 
                        to the expiration of the 2-year period 
                        described in clause (i), such member's 
                        membership on the Board of Directors shall 
                        terminate on that date.''.
    (d) Vacancies.--Section 2(d)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1812(d)(1)) is amended--
            (1) by striking ``Any vacancy'' and inserting the 
        following:
                    ``(A) In general.--Subject to the restrictions 
                contained in subparagraph (B), any vacancy''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Restrictions.--
                            ``(i) Same individual.--In filling a 
                        vacancy on the Board of Directors pursuant to 
                        subsection (a)(1)(D), the President may not 
                        appoint an individual who has previously served 
                        as a member of the Board of Directors pursuant 
                        to subsection (a)(1)(D).
                            ``(ii) Same state.--In filling a vacancy on 
                        the Board of Directors pursuant to subsection 
                        (a)(1)(D) (other than a vacancy occurring under 
                        subsection (c)(1)(B)(ii)), the President may 
                        not appoint an individual who is serving as the 
                        State bank commissioner or supervisor (or 
                        functional equivalent thereof) of the same 
                        State as the member most recently appointed 
                        pursuant to subsection (a)(1)(D).''.
    (e) Noncompensation; Travel Expenses.--Section 2 of the Federal 
Deposit Insurance Act (12 U.S.C. 1812) is amended by adding at the end 
the following new subsection:
    ``(g) Personnel Matters Relating to State Bank Representatives.--
Members of the Board of Directors appointed pursuant to subsection 
(a)(1)(D)--
            ``(1) shall serve without compensation; and
            ``(2) shall be allowed travel expenses, including per diem 
        in lieu of subsistence, at rates authorized for employees of 
        agencies under subchapter I of chapter 57 of title 5, United 
        States Code, while away from their homes or regular places of 
        business in the performance of services for the Board of 
        Directors.''.

 TITLE III--REGULATORY IMPACT ON COST OF CREDIT AND CREDIT AVAILABILITY

  Subtitle A--Lowering Compliance Costs To Promote Credit Availability

SEC. 301. AUDIT COSTS.

    (a) In General.--
            (1) Auditor attestations.--Section 36 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831m) is amended by striking 
        subsection (e) and inserting the following:
    ``(e) [Reserved.]''.
            (2) Independent audit committees.--Section 36(g)(1) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) is 
        amended--
                    (A) in subparagraph (A), by striking ``entirely'' 
                and inserting ``the majority of which is''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Exemption authority.--
                            ``(i) In general.--Each appropriate Federal 
                        banking agency shall, by regulation, exempt 
                        from the requirements of this subsection each 
                        insured depository institution that has, in the 
                        determination of the agency, encountered 
                        hardships in retaining competent directors on 
                        the internal audit committee of the institution 
                        as a result of this subsection.
                            ``(ii) Factors considered.--In determining 
                        whether to exempt an insured depository 
                        institution under clause (i), each appropriate 
                        Federal banking agency shall take into 
                        consideration such factors as the size of the 
                        institution and the availability of competent 
                        outside directors from the community of the 
                        institution.''.
            (3) Public availability.--Section 36(a)(3) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by 
        adding at the end the following: ``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.''.

SEC. 302. INCENTIVES FOR SELF-TESTING.

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

``SEC. 704A. ENCOURAGEMENT OF CREDITORS TO SELF-TEST FOR EQUAL CREDIT 
              OPPORTUNITY ACT COMPLIANCE.

    ``If a creditor conducts, or authorizes an independent third party 
to conduct, a test or review of the lending operations of the creditor 
or any part of the lending operations of the creditor in order to 
determine the level or effectiveness of compliance with this title by 
the creditor, any report or results of such a test or review may not be 
reviewed, obtained, examined, or otherwise acquired or used by any 
department or agency authorized to enforce this title.'';
            (2) in section 706(g), by adding at the end the following: 
        ``An agency may refer a matter to the Attorney General under 
        this subsection if the creditor has already identified the 
        matter as a possible violation of this title as the result of 
        internal review, self-testing, compliance review, or other 
        audit or review procedure instituted by the creditor to 
        determine compliance with this title. Nothing in this 
        subsection shall limit the authority of the agency to enforce 
        this title under any other provision of law.''; and
            (3) in section 706(k)--
                    (A) by redesignating subparagraphs (1) through (3) 
                as subparagraphs (A) through (C), respectively, and 
                indenting appropriately;
                    (B) by striking ``Whenever'' and inserting the 
                following:
            ``(1) In general.--Whenever''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Limitation.--An agency referred to in paragraph (1), 
        (2), or (3) of section 704(a) may notify the Secretary of 
        Housing and Urban Development or the applicant of a violation 
        of this title or of the Fair Housing Act if the creditor has 
        already identified the matter as a possible violation of either 
        this title or the Fair Housing Act as a result of internal 
        review, self-testing, compliance review, or other audit or 
        review procedure instituted by the creditor to determine 
        compliance with this title. Nothing in this subsection shall 
        limit the authority of the agency to enforce this title under 
        any other provision of law.''.
    (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. ENCOURAGEMENT TO SELF-TEST FOR FAIR HOUSING ACT 
              COMPLIANCE.

    ``If any person conducts, or authorizes an independent third party 
to conduct, a test or review of the residential real estate or real 
estate-related activities of the person, or any part thereof, in order 
to determine the level or effectiveness of compliance with this Act by 
that person, any report or results of such a test or review may not be 
reviewed, obtained, examined, or otherwise acquired or used by any 
department or agency authorized to enforce this Act.''.

SEC. 303. EXEMPTION FOR SAVINGS INSTITUTIONS SERVING MILITARY 
              PERSONNEL.

    Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
1467a(m)(3)(F)) is amended to read as follows:
                    ``(F) Exemption for specialized savings 
                associations serving certain military personnel.--
                Subparagraph (A) does not apply to a savings 
                association subsidiary of a savings and loan holding 
                company if not less than 90 percent of the customers of 
                the savings and loan holding company and the 
                subsidiaries and affiliates of such company are active 
                or former officers in the United States military 
                services or the widows, widowers, divorced spouses, or 
                current or former dependents of such officers.''.

SEC. 304. QUALIFIED THRIFT INVESTMENT AMENDMENTS.

    (a) Credit Cards.--Section 5(b) of the Home Owners' Loan Act (12 
U.S.C. 1464(b)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraph (5) as paragraph (4).
    (b) Loans or Investments Without Percentage of Assets Limitation.--
Section 5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(1)) is 
amended by adding at the end the following new subparagraphs:
                    ``(T) Credit card loans.--Loans made through credit 
                cards or credit card accounts.
                    ``(U) Education loans.--Loans made for the payment 
                of educational expenses.''.
    (c) Commercial and Other Loans.--Section 5(c)(2)(A) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended by adding at the 
end the following: ``No loan may be made under this subparagraph in an 
amount that exceeds 20 percent of the total assets of the Federal 
savings association, and any loan amount in excess of 10 percent of the 
total assets of the Federal savings association may be invested only in 
small business loans, as such term is defined by the Director.''.
    (d) Loans or Investments Limited to 5 Percent of Assets.--Section 
5(c)(3) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(3)) is 
amended--
            (1) by striking subparagraph (A); and
            (2) by redesignating subparagraphs (B), (C), and (D) as 
        subparagraphs (A), (B), and (C), respectively.
    (e) Qualified Thrift Lender Test.--Section 10(m)(1) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(m)(1)) is amended--
            (1) by redesignating subparagraph (B) as clause (ii);
            (2) in subparagraph (A), by striking ``(A) the savings'' 
        and inserting ``(B)(i) the savings''; and
            (3) by inserting after ``if--'' the following new 
        subparagraph:
                    ``(A) the savings association qualifies as a 
                domestic building and loan association, as such term is 
                defined in section 7701(a)(19) of the Internal Revenue 
                Code of 1986; or''.
    (f) Definition.--Section 10(m)(4) of the Home Owners' Loan Act (12 
U.S.C. 1467a(m)(4)) is amended--
            (1) in subparagraph (C)--
                    (A) in clause (ii), by adding at the end the 
                following new subclause:
                                    ``(VII) Loans for educational 
                                purposes, loans to small businesses, 
                                and loans made through credit cards or 
                                credit card accounts.'';
                    (B) in clause (iii), by striking subclause (VI) and 
                inserting the following:
                                    ``(VI) Loans for personal, family, 
                                or household purposes (other than loans 
                                for personal, family, or household 
                                purposes covered by clause 
                                (ii)(VII)).''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(D) Credit card.--The Director shall issue such 
                regulations as may be necessary to define the term 
                `credit card'.
                    ``(E) Small business.--The Director shall issue 
                such regulations a may be necessary to define the term 
                `small business'.''.

SEC. 305. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN BANKS.

    The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by 
inserting after section 11A the following new section:

SEC. 11B. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN BANKS.

    ``Any policy or regulation adopted by the Board of Governors of the 
Federal Reserve System governing payment system risk or intraday credit 
shall--
            ``(1) include--
                    ``(A) the establishment of net debit caps 
                appropriate to the credit quality of each Federal Home 
                Loan Bank; and
                    ``(B) the imposition of normal fees for daylight 
                overdrafts, calculated in the same manner as fees for 
                other users; or
            ``(2) exempt Federal Home Loan Banks from such policy or 
        regulation.''.

SEC. 306. APPLICATION FOR MEMBERSHIP IN THE FEDERAL HOME LOAN BANK 
              SYSTEM.

     Section 4(b) of the Federal Home Loan Bank Act (12 U.S.C. 1424(b)) 
is amended to read as follows:
    ``(b) Membership Based on Convenience.--
            ``(1) Application process.--An institution eligible to 
        become a member under this section may become a member by 
        submitting an application for membership--
                    ``(A) to the Bank in the district in which the 
                principal place of business of the institution is 
                located; or
                    ``(B) if the Board determines that such action is 
                necessary for the convenience of the institution, to 
                the Bank in any district that is adjacent to the 
                district in which the principal place of business of 
                the institution is located.
            ``(2) Approval of application.--An application for 
        membership submitted under this subsection shall be approved by 
        the Bank if, in the judgment of the Bank, the applicant meets 
        the criteria for eligibility contained in this section.''.

SEC. 307. AUTHORITY FOR FEDERAL HOME LOAN BANKS TO SELECT EXTERNAL 
              AUDITORS.

    Section 11(j) of the Federal Home Loan Bank Act (12 U.S.C. 1431(j)) 
is amended--
            (1) by striking ``(j) Notwithstanding'' and inserting the 
        following:
    ``(j) Audits.--
            ``(1) In general.--Notwithstanding''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Selection of external auditors.--
                    ``(A) In general.--The Federal Home Loan Banks 
                shall, on an annual basis, contract for an annual audit 
                with a single auditor.
                    ``(B) Role of the board.--Notwithstanding any other 
                provision of law, the Board shall not participate in 
                any audit or audit contracting process under this 
                paragraph, except that the Board may establish 
                requirements for audit contracts and accounting 
                standards used in connection with any audit under this 
                paragraph.''.

SEC. 308. LIMITED PURPOSE BANK GROWTH CAP RELIEF.

    Section 4(f)(3)(B) of the Bank Holding Company Act of 1956 (12 
U.S.C. 1843(f)(3)(B)) is amended--
            (1) in clause (ii), by adding ``or'' at the end;
            (2) in clause (iii), by striking ``; or'' at the end and 
        inserting a period; and
            (3) by striking clause (iv).

                Subtitle B--Disincentives to Risk-Taking

SEC. 311. DUE PROCESS PROTECTIONS.

    (a) Attachment of Assets.--Section 11(d)(19) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(d)(19)) is amended--
            (1) in subparagraph (A), by striking ``without regard'' and 
        all that follows through ``immediate''; and
            (2) in subparagraph (B), by striking ``(as modified with 
        respect to such proceeding by subparagraph (A))''.
    (b) Cease-and-Desist Proceedings.--Section 8(b)(6) of the Federal 
Deposit Insurance Act (12 U.S.C. 1818(b)(6)) is amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking ``and'' at the end;
            (3) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (4) by inserting after subparagraph (E) the following new 
        subparagraph:
                    ``(F) prohibit such party from withdrawing, 
                transferring, removing, dissipating, or disposing of 
                any funds, assets, or other property if injury, loss, 
                or damage to such property is irreparable and 
                immediate; and''.
    (c) Prejudgment Attachment.--
            (1) Insured depository institutions.--Section 8(i)(4)(B) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1818(i)) is 
        amended to read as follows:
                    ``(B) Standard.--Rule 65 of the Federal Rules of 
                Civil Procedure shall apply with respect to any 
                proceeding under this paragraph.''.
            (2) Insured credit unions.--
                    (A) Powers and duties of board as conservator or 
                liquidating agent.--Section 207(b)(2)(H) of the Federal 
                Credit Union Act (12 U.S.C. 1787(b)(2)(H)) is amended--
                            (i) in clause (i), by striking ``without 
                        regard'' and all that follows through 
                        ``immediate''; and
                            (ii) in clause (ii), by striking ``(as 
                        modified with respect to such proceeding by 
                        clause (i))''.
                    (B) Affirmative action to correct conditions 
                resulting from violations or practices.--Section 
                206(e)(3) of the Federal Credit Union Act (12 U.S.C. 
                1786(e)(3)) is amended--
                            (i) in subparagraph (D), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (E), by striking 
                        ``and'' at the end;
                            (iii) by redesignating subparagraph (F) as 
                        subparagraph (G); and
                            (iv) by inserting after subparagraph (E) 
                        the following new subparagraph:
                    ``(F) refrain from withdrawing, transferring, 
                removing, dissipating, or disposing of any funds, 
                assets, or other property if injury, loss, or damage to 
                such property is irreparable and immediate; and''.

            Subtitle C--Miscellaneous Nonsupervisory Reforms

SEC. 321. LIABILITY FOR UNAUTHORIZED USE OF CREDIT CARDS.

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

SEC. 322. UNAUTHORIZED ELECTRONIC FUND TRANSFERS.

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