[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1405 Reported in Senate (RS)]





                                                       Calendar No. 602

105th CONGRESS

  2d Session

                                S. 1405

                          [Report No. 105-346]

_______________________________________________________________________

                                 A BILL

   To provide for improved monetary policy and regulatory reform in 
    financial institution management and activities, to streamline 
 financial regulatory agency actions, to provide for improved consumer 
               credit disclosure, and for other purposes.

_______________________________________________________________________

                           September 24, 1998

                       Reported with an amendment





                                                       Calendar No. 602
105th CONGRESS
  2d Session
                                S. 1405

                          [Report No. 105-346]

   To provide for improved monetary policy and regulatory reform in 
    financial institution management and activities, to streamline 
 financial regulatory agency actions, to provide for improved consumer 
               credit disclosure, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 7, 1997

  Mr. Shelby (for himself, Mr. Mack, Mr. Faircloth, Mr. D'Amato, Mr. 
  Bryan, Mr. Grams, Mr. Kerry, Mr. Bennett, Mr. Gramm, Mr. Hagel, Mr. 
 Allard, Mr. Enzi, Ms. Moseley-Braun, and Mr. Cochran) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

                           September 24, 1998

               Reported by Mr. D'Amato, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
   To provide for improved monetary policy and regulatory reform in 
    financial institution management and activities, to streamline 
 financial regulatory agency actions, to provide for improved consumer 
               credit disclosure, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Financial 
Regulatory Relief and Economic Efficiency Act of 1997''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
 <DELETED>TITLE I--IMPROVING MONETARY POLICY AND FINANCIAL INSTITUTION 
                          MANAGEMENT PRACTICES

<DELETED>Sec. 101. Payment of interest on reserves at Federal reserve 
                            banks.
<DELETED>Sec. 102. Amendments relating to savings and demand deposit 
                            accounts at depository institutions.
<DELETED>Sec. 103. Repeal of savings association liquidity provision.
<DELETED>Sec. 104. Repeal of dividend notice requirement.
<DELETED>Sec. 105. Thrift service companies.
<DELETED>Sec. 106. Elimination of thrift multistate multiple holding 
                            company restrictions.
<DELETED>Sec. 107. Noncontrolling investments by savings association 
                            holding companies.
<DELETED>Sec. 108. Repeal of deposit broker notification and 
                            recordkeeping requirement.
<DELETED>Sec. 109. Uniform regulation of extensions of credit to 
                            executive officers.
<DELETED>Sec. 110. Expedited procedures for certain reorganizations.
<DELETED>Sec. 111. National bank directors.
<DELETED>Sec. 112. Amendment to Bank Consolidation and Merger Act.
<DELETED>Sec. 113. Loans on or purchases by institutions of their own 
                            stock; affiliations.
<DELETED>Sec. 114. Depository institution management interlocks.
<DELETED>Sec. 115. Purchased mortgage servicing rights.
<DELETED>Sec. 116. Cross marketing restriction; limited purpose bank 
                            relief.
<DELETED>Sec. 117. Divestiture requirement.
<DELETED>Sec. 118. Daylight overdrafts incurred by Federal home loan 
                            banks.
<DELETED>Sec. 119. Federal home loan bank governance amendments.
<DELETED>Sec. 120. Collateralization of advances to members.
       <DELETED>TITLE II--STREAMLINING ACTIVITIES OF INSTITUTIONS

<DELETED>Sec. 201. Updating of authority for community development 
                            investments.
<DELETED>Sec. 202. Acceptance of brokered deposits.
<DELETED>Sec. 203. Federal Reserve Act lending limits.
<DELETED>Sec. 204. Eliminate unnecessary restrictions on product 
                            marketing.
<DELETED>Sec. 205. Business purpose credit extensions.
<DELETED>Sec. 206. Affinity groups.
<DELETED>Sec. 207. Fair debt collection practices.
<DELETED>Sec. 208. Restriction on acquisitions of other insured 
                            depository institutions.
<DELETED>Sec. 209. Mutual holding companies.
<DELETED>Sec. 210. Call report simplification.
            <DELETED>TITLE III--STREAMLINING AGENCY ACTIONS

<DELETED>Sec. 301. Scheduled meetings of Affordable Housing Advisory 
                            Board.
<DELETED>Sec. 302. Elimination of duplicative disclosure of fair market 
                            value of assets and liabilities.
<DELETED>Sec. 303. Payment of interest in receiverships with surplus 
                            funds.
<DELETED>Sec. 304. Repeal of reporting requirement on differences in 
                            accounting standards.
<DELETED>Sec. 305. Agency review of competitive factors in Bank Merger 
                            Act filings.
<DELETED>Sec. 306. Termination of the Thrift Depositor Protection 
                            Oversight Board.
              <DELETED>TITLE IV--DISCLOSURE SIMPLIFICATION

<DELETED>Sec. 401. Alternative compliance method for APR disclosure.
<DELETED>Sec. 402. Alternative compliance methods for advertising 
                            credit terms.
                    <DELETED>TITLE V--MISCELLANEOUS

<DELETED>Sec. 501. Positions of Board of Governors of Federal Reserve 
                            System on the Executive Schedule.
<DELETED>Sec. 502. Consistent coverage for individuals enrolled in a 
                            health plan administered by the Federal 
                            banking agencies.
<DELETED>Sec. 503. Federal Housing Finance Board.
                <DELETED>TITLE VI--TECHNICAL CORRECTIONS

<DELETED>Sec. 601. Technical correction relating to deposit insurance 
                            funds.
<DELETED>Sec. 602. Rules for continuation of deposit insurance for 
                            member banks converting charters.
<DELETED>Sec. 603. Amendments to the Revised Statutes.
<DELETED>Sec. 604. Conforming change to the International Banking Act.

 <DELETED>TITLE I--IMPROVING MONETARY POLICY AND FINANCIAL INSTITUTION 
                     MANAGEMENT PRACTICES</DELETED>

<DELETED>SEC. 101. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE 
              BANKS.</DELETED>

<DELETED>    (a) In General.--Section 19(b) of the Federal Reserve Act 
(12 U.S.C. 461(b)) is amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(12) Earnings on reserves.--</DELETED>
                <DELETED>    ``(A) In general.--Balances maintained at 
                a Federal reserve bank by or on behalf of a depository 
                institution to meet the reserve requirements of this 
                subsection applicable with respect to such depository 
                institution may receive earnings to be paid by the 
                Federal reserve bank at least once each calendar 
                quarter at a rate or rates not to exceed the general 
                level of short-term interest rates.</DELETED>
                <DELETED>    ``(B) Regulations relating to payments and 
                distribution.--The Board may prescribe regulations 
                concerning--</DELETED>
                        <DELETED>    ``(i) the payment of earnings in 
                        accordance with this paragraph;</DELETED>
                        <DELETED>    ``(ii) the distribution of such 
                        earnings to the depository institutions which 
                        maintain balances at such banks or on whose 
                        behalf such balances are maintained; 
                        and</DELETED>
                        <DELETED>    ``(iii) the responsibilities of 
                        depository institutions, Federal home loan 
                        banks, and the National Credit Union 
                        Administration Central Liquidity Facility with 
                        respect to the crediting and distribution of 
                        earnings attributable to balances maintained, 
                        in accordance with subsection (c)(1)(B), in a 
                        Federal reserve bank by any such entity on 
                        behalf of depository institutions which are not 
                        member banks.''.</DELETED>
<DELETED>    (b) Authorization for Pass Through Reserves for Member 
Banks.--Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C. 
461(c)(1)(B)) is amended by striking ``which is not a member 
bank''.</DELETED>
<DELETED>    (c) Technical and Conforming Amendments.--Section 19 of 
the Federal Reserve Act (12 U.S.C. 461) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by 
        striking subparagraph (C) and redesignating subparagraphs (D) 
        and (E) as subparagraphs (C) and (D), respectively; 
        and</DELETED>
        <DELETED>    (2) in subsection (c)(1)(A) (12 U.S.C. 
        461(c)(1)(A)), by striking ``subsection (b)(4)(C)'' and 
        inserting ``subsection (b)''.</DELETED>

<DELETED>SEC. 102. AMENDMENTS RELATING TO SAVINGS AND DEMAND DEPOSIT 
              ACCOUNTS AT DEPOSITORY INSTITUTIONS.</DELETED>

<DELETED>    (a) NOW Accounts Authorized for All Businesses.--Section 2 
of Public Law 93-100 (12 U.S.C. 1832) is amended to read as 
follows:</DELETED>

<DELETED>``SEC. 2. WITHDRAWALS BY NEGOTIABLE OR TRANSFERABLE 
              INSTRUMENTS FOR TRANSFERS TO THIRD PARTIES.</DELETED>

<DELETED>    ``Notwithstanding any other provision of law, any 
depository institution (as defined in section 3 of the Federal Deposit 
Insurance Act) may permit the owner of any deposit or account to make 
withdrawals from such deposit or account by negotiable or transferable 
instruments for the purpose of making payments to third 
parties.''.</DELETED>
<DELETED>    (b) Repeal of Prohibitions on Payment of Interest on 
Demand Deposits.--</DELETED>
        <DELETED>    (1) Federal reserve act.--Section 19 of the 
        Federal Reserve Act (12 U.S.C. 371a) is amended by striking 
        subsection (i).</DELETED>
        <DELETED>    (2) Home owners' loan act.--The first sentence of 
        section 5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C. 
        1464(b)(1)(B)) is amended by striking ``savings association may 
        not--'' and all that follows through ``(ii) permit any'' and 
        inserting ``savings association may not permit any''.</DELETED>
        <DELETED>    (3) Federal deposit insurance act.--Section 18 of 
        the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended 
        by striking subsection (g).</DELETED>

<DELETED>SEC. 103. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY 
              PROVISION.</DELETED>

<DELETED>    (a) Repeal of Liquidity Provision.--Section 6 of the Home 
Owners' Loan Act (12 U.S.C. 1465) is repealed.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 5.--Section 5(c)(1)(M) of the Home 
        Owners' Loan Act (12 U.S.C. 1464(c)(1)(M)) is amended to read 
        as follows:</DELETED>
                <DELETED>    ``(M) Liquidity investments.--Investments 
                identified by the Director, including cash, funds on 
                deposit at a Federal reserve bank or a Federal home 
                loan bank, or bankers' acceptances.''.</DELETED>
        <DELETED>    (2) Section 10.--Section 10(m)(4)(B)(iii) of the 
        Home Owners' Loan Act (12 U.S.C. 1467a(m)(4)(B)(iii)) is 
        amended by striking ``liquid assets'' and all that follows 
        through ``Loan Act,'' and inserting ``cash and marketable 
        securities identified by the Director,''.</DELETED>

<DELETED>SEC. 104. REPEAL OF DIVIDEND NOTICE REQUIREMENT.</DELETED>

<DELETED>    Section 10(f) of the Home Owners' Loan Act (12 U.S.C. 
1467a(f)) is amended to read as follows:</DELETED>
<DELETED>    ``(f) [Reserved].''.</DELETED>

<DELETED>SEC. 105. THRIFT SERVICE COMPANIES.</DELETED>

<DELETED>    (a) Streamlining Thrift Service Company Investment 
Requirements.--Section 5(c)(4)(B) of the Home Owners' Loan Act (12 
U.S.C. 1464(c)(4)(B)) is amended--</DELETED>
        <DELETED>    (1) in the subparagraph heading, by striking 
        ``corporations'' and inserting ``companies''; and</DELETED>
        <DELETED>    (2) in the first sentence, by striking 
        ``corporation organized'' and all that follows through ``such 
        State.'' and inserting ``company, if such company engages or 
        will engage only in activities reasonably related to the 
        activities of financial institutions, as the Director may 
        determine and approve. For purposes of this subparagraph, the 
        term `company' includes any corporation and any limited 
        liability company (as defined in section 1(b)(7) of the Bank 
        Service Company Act).''.</DELETED>
<DELETED>    (b) Regulation and Examination of Service Providers.--
Section 5(d) of the Home Owners' Loan Act (12 U.S.C. 1464(d)) is 
amended by adding at the end the following new paragraphs:</DELETED>
        <DELETED>    ``(7) Regulation and examination of savings 
        association service companies.--</DELETED>
                <DELETED>    ``(A) Service performed by contract or 
                otherwise.--If a savings association, subsidiary, or 
                any savings and loan affiliate or entity, as identified 
                by section 8(b)(9) of the Federal Deposit Insurance 
                Act, that is regularly examined or subject to 
                examination by the Director, causes to be performed for 
                itself, by contract or otherwise, any services 
                authorized under this Act or other applicable Federal 
                law, whether on or off its premises--</DELETED>
                        <DELETED>    ``(i) such performance shall be 
                        subject to regulation and examination by the 
                        Director to the same extent as if such services 
                        were being performed by the savings association 
                        on its own premises;</DELETED>
                        <DELETED>    ``(ii) the Director may authorize 
                        any other Federal banking agency (as defined in 
                        section 3 of the Federal Deposit Insurance Act) 
                        that supervises such subsidiary, savings and 
                        loan affiliate, or entity to perform an 
                        examination referred to in clause (i); 
                        and</DELETED>
                        <DELETED>    ``(iii) the savings association 
                        shall notify the Director of the existence of 
                        the service relationship not later than 30 days 
                        after the earlier of the date of the making of 
                        such service contract or the date of initiation 
                        of the service.</DELETED>
                <DELETED>    ``(B) Administration by the director.--The 
                Director may issue such regulations and orders, 
                including those issued pursuant to section 8 of the 
                Federal Deposit Insurance Act, as may be necessary to 
                enable the Director to administer and carry out this 
                paragraph and to prevent evasion of this 
                paragraph.''.</DELETED>
<DELETED>    (c) Conforming Amendments to Section 8 of the Federal 
Deposit Insurance Act.--Section 8 of the Federal Deposit Insurance Act 
(12 U.S.C. 1818) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(9), by striking ``to any 
        service corporation of a savings association and to any 
        subsidiary of such service corporation''; and</DELETED>
        <DELETED>    (2) in subsection (e)(7)(A)(ii), by striking 
        ``(b)(8)'' and inserting ``(b)(9)''.</DELETED>

<DELETED>SEC. 106. ELIMINATION OF THRIFT MULTISTATE MULTIPLE HOLDING 
              COMPANY RESTRICTIONS.</DELETED>

<DELETED>    Section 10(e) of the Home Owners' Loan Act (12 U.S.C. 
1467a(e)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (3); and</DELETED>
        <DELETED>    (2) by redesignating paragraphs (4), (5), and (6) 
        as paragraphs (3), (4), and (5), respectively.</DELETED>

<DELETED>SEC. 107. NONCONTROLLING INVESTMENTS BY SAVINGS ASSOCIATION 
              HOLDING COMPANIES.</DELETED>

<DELETED>    Section 10(e)(1)(A)(iii) of the Home Owners' Loan Act (12 
U.S.C. 1467a(e)(1)(A)(iii)) is amended--</DELETED>
        <DELETED>    (1) by inserting ``, except with the prior 
        approval of the Director,'' after ``or to retain''; 
        and</DELETED>
        <DELETED>    (2) by striking ``to so acquire or retain'' and 
        inserting ``to acquire, by purchase or otherwise, or to 
        retain''.</DELETED>

<DELETED>SEC. 108. REPEAL OF DEPOSIT BROKER NOTIFICATION AND 
              RECORDKEEPING REQUIREMENT.</DELETED>

<DELETED>    Section 29A of the Federal Deposit Insurance Act (12 
U.S.C. 1831f-1) is repealed.</DELETED>

<DELETED>SEC. 109. UNIFORM REGULATION OF EXTENSIONS OF CREDIT TO 
              EXECUTIVE OFFICERS.</DELETED>

<DELETED>    Section 22(g)(4) of the Federal Reserve Act (12 U.S.C. 
375a(4)) is amended by striking ``member bank's appropriate Federal 
banking agency'' and inserting ``Board''.</DELETED>

<DELETED>SEC. 110. EXPEDITED PROCEDURES FOR CERTAIN 
              REORGANIZATIONS.</DELETED>

<DELETED>    The National Bank Consolidation and Merger Act (12 U.S.C. 
215 et seq.) is amended--</DELETED>
        <DELETED>    (1) by redesignating section 5 as section 7; 
        and</DELETED>
        <DELETED>    (2) by inserting after section 4 the following new 
        section:</DELETED>

<DELETED>``SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN 
              REORGANIZATIONS.</DELETED>

<DELETED>    ``(a) In General.--A national banking association may, 
with the approval of the Comptroller, pursuant to rules and regulations 
promulgated by the Comptroller, and upon the affirmative vote of the 
shareholders of such association owning at least two-thirds of its 
capital stock outstanding, reorganize so as to become a subsidiary of a 
bank holding company or a company that will, upon consummation of such 
reorganization, become a bank holding company.</DELETED>
<DELETED>    ``(b) Reorganization Plan.--A reorganization authorized 
under subsection (a) shall be carried out in accordance with a 
reorganization plan that--</DELETED>
        <DELETED>    ``(1) specifies the manner in which the 
        reorganization shall be carried out;</DELETED>
        <DELETED>    ``(2) is approved by a majority of the entire 
        board of directors of the association;</DELETED>
        <DELETED>    ``(3) specifies--</DELETED>
                <DELETED>    ``(A) the amount of cash or securities of 
                the bank holding company, or both, or other 
                consideration, to be paid to the shareholders of the 
                reorganizing association in exchange for their shares 
                of stock of the association;</DELETED>
                <DELETED>    ``(B) the date as of which the rights of 
                each shareholder to participate in such exchange will 
                be determined; and</DELETED>
                <DELETED>    ``(C) the manner in which the exchange 
                will be carried out; and</DELETED>
        <DELETED>    ``(4) is submitted to the shareholders of the 
        reorganizing association at a meeting to be held on the call of 
        the directors in accordance with the procedures prescribed in 
        connection with a merger of a national bank under section 
        3.</DELETED>
<DELETED>    ``(c) Rights of Dissenting Shareholders.--If, pursuant to 
this section, a reorganization plan has been approved by the 
shareholders and the Comptroller, any shareholder of the association 
who has voted against the reorganization at the meeting referred to in 
subsection (b)(4), or has given notice in writing at or prior to that 
meeting to the presiding officer that the shareholder dissents from the 
reorganization plan, shall be entitled to receive the value of his or 
her shares, as provided by section 3 for the merger of a national 
bank.</DELETED>
<DELETED>    ``(d) Effect of Reorganization.--The corporate existence 
of an association that reorganizes in accordance with this section 
shall not be deemed to have been affected in any way by reason of such 
reorganization.''.</DELETED>

<DELETED>SEC. 111. NATIONAL BANK DIRECTORS.</DELETED>

<DELETED>    (a) Amendments to the Revised Statutes.--Section 5145 of 
the Revised Statutes (12 U.S.C. 71) is amended--</DELETED>
        <DELETED>    (1) by striking ``for one year'' and inserting 
        ``for a period of not more than 3 years,''; and</DELETED>
        <DELETED>    (2) by adding at the end the following: ``In 
        accordance with regulations issued by the Comptroller of the 
        Currency, an association may adopt bylaws that provide for 
        staggering the terms of its directors.''.</DELETED>
<DELETED>    (b) Amendment to the Banking Act of 1933.--Section 31 of 
the Banking Act of 1933 (12 U.S.C. 71a) is amended in the first 
sentence, by inserting before the period ``, except that the 
Comptroller of the Currency may, by regulation or order, exempt a 
national banking association from the 25-member limit established by 
this section''.</DELETED>

<DELETED>SEC. 112. AMENDMENT TO BANK CONSOLIDATION AND MERGER 
              ACT.</DELETED>

<DELETED>    The National Bank Consolidation and Merger Act (12 U.S.C. 
215 et seq.) is amended by inserting after section 5, as added by 
section 110 of this Act, the following new section:</DELETED>

<DELETED>``SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDIARIES AND 
              NONBANK AFFILIATES.</DELETED>

<DELETED>    ``(a) In General.--Upon the approval of the Comptroller, a 
national banking association may merge with 1 or more of its 
subsidiaries or nonbank affiliates.</DELETED>
<DELETED>    ``(b) Scope.--Nothing in this section shall be construed--
</DELETED>
        <DELETED>    ``(1) to affect the applicability of section 
        18(c)(1) of the Federal Deposit Insurance Act; or</DELETED>
        <DELETED>    ``(2) to grant a national banking association any 
        power or authority that is not permissible for a national 
        banking association under other applicable provisions of 
        law.</DELETED>
<DELETED>    ``(c) Regulations.--The Comptroller shall promulgate 
regulations to implement this section.''.</DELETED>

<DELETED>SEC. 113. LOANS ON OR PURCHASES BY INSTITUTIONS OF THEIR OWN 
              STOCK; AFFILIATIONS.</DELETED>

<DELETED>    (a) Amendment to Revised Statutes.--Section 5201 of the 
Revised Statutes of the United States (12 U.S.C. 83) is amended to read 
as follows:</DELETED>

<DELETED>``SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.</DELETED>

<DELETED>    ``(a) General Prohibition.--No national banking 
association shall make any loan or discount on the security of the 
shares of its own capital stock.</DELETED>
<DELETED>    ``(b) Exclusion.--For purposes of this section, an 
association shall not be deemed to be making a loan or discount on the 
security of the shares of its own capital stock if it acquires the 
stock to prevent loss upon a debt contracted for in good faith before 
the date of the loan or discount transaction.''.</DELETED>
<DELETED>    (b) Amendment to Federal Deposit Insurance Act.--Section 
18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by 
adding at the end the following new subsection:</DELETED>
<DELETED>    ``(t) Loans by Insured Institutions on Their Own Stock.--
</DELETED>
        <DELETED>    ``(1) General prohibition.--No insured depository 
        institution shall make any loan or discount on the security of 
        the shares of its own capital stock.</DELETED>
        <DELETED>    ``(2) Exclusion.--For purposes of this subsection, 
        an insured depository institution shall not be deemed to be 
        making a loan or discount on the security of the shares of its 
        own capital stock if it acquires the stock to prevent loss upon 
        a debt contracted for in good faith before the date of the loan 
        or discount transaction.''.</DELETED>
<DELETED>    (c) Removal of Prohibition on Certain Affiliations.--
Section 18(s)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(s)) is amended by striking ``be an affiliate of,''.</DELETED>

<DELETED>SEC. 114. DEPOSITORY INSTITUTION MANAGEMENT 
              INTERLOCKS.</DELETED>

<DELETED>    Section 205(8) of the Depository Institution Management 
Interlocks Act (12 U.S.C. 3204(8)) is amended by striking ``director'' 
each place it appears and inserting ``management official''.</DELETED>

<DELETED>SEC. 115. PURCHASED MORTGAGE SERVICING RIGHTS.</DELETED>

<DELETED>    Section 475(a) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
</DELETED>
        <DELETED>    (1) by striking ``purchased'';</DELETED>
        <DELETED>    (2) by striking ``rights'' each place it appears 
        and inserting ``assets''; and</DELETED>
        <DELETED>    (3) by striking ``90'' and inserting 
        ``100''.</DELETED>

<DELETED>SEC. 116. CROSS MARKETING RESTRICTION; LIMITED PURPOSE BANK 
              RELIEF.</DELETED>

<DELETED>    (a) Cross Marketing Restriction.--Section 4(f) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1843(f)) is amended by striking 
paragraph (3).</DELETED>
<DELETED>    (b) Daylight Overdrafts.--Section 4(f) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)) is amended by inserting after 
paragraph (2) the following:</DELETED>
        <DELETED>    ``(3) Permissible overdrafts described.--For 
        purposes of paragraph (2)(C), an overdraft is described in this 
        paragraph if--</DELETED>
                <DELETED>    ``(A) such overdraft results from an 
                inadvertent computer or accounting error that is beyond 
                the control of both the bank and the 
                affiliate;</DELETED>
                <DELETED>    ``(B) such overdraft--</DELETED>
                        <DELETED>    ``(i) is permitted or incurred on 
                        behalf of an affiliate that is monitored by, 
                        reports to, and is recognized as a primary 
                        dealer by the Federal Reserve Bank of New York; 
                        and</DELETED>
                        <DELETED>    ``(ii) is fully secured, as 
                        required by the Board, by bonds, notes, or 
                        other obligations that are direct obligations 
                        of the United States or on which the principal 
                        and interest are fully guaranteed by the United 
                        States or by securities and obligations 
                        eligible for settlement on the Federal Reserve 
                        book entry system; or</DELETED>
                <DELETED>    ``(C) such overdraft--</DELETED>
                        <DELETED>    ``(i) is permitted or incurred by, 
                        or on behalf of, an affiliate that is engaged 
                        in activities that are so closely related to 
                        banking, or managing or controlling banks, as 
                        to be a proper incident thereto; and</DELETED>
                        <DELETED>    ``(ii) does not cause the bank to 
                        violate any provision of section 23A or 23B of 
                        the Federal Reserve Act, either directly, in 
                        the case of a bank that is a member of the 
                        Federal Reserve System, or by virtue of section 
                        18(j) of the Federal Deposit Insurance Act, in 
                        the case of a bank that is not a member of the 
                        Federal Reserve System.''.</DELETED>
<DELETED>    (c) Conforming Amendment.--Section 4(f)(2) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended by 
striking ``Paragraph (1) shall cease to apply to any company described 
in such paragraph if--'' and inserting ``Subject to paragraph (3), a 
company described in paragraph (1) shall no longer qualify for the 
exemption provided under that paragraph</DELETED>
<DELETED>if--''.</DELETED>
<DELETED>    (d) Activities Limitations.--Section 4(f)(2) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended by 
striking subparagraph (B) and inserting the following:</DELETED>
                <DELETED>    ``(B) any bank subsidiary of such company 
                engages in any activity in which the bank was not 
                lawfully engaged as of March 5, 1987;</DELETED>
                <DELETED>    ``(C) any bank subsidiary of such company 
                that--</DELETED>
                        <DELETED>    ``(i) accepts demand deposits or 
                        deposits that the depositor may withdraw by 
                        check or similar means for payment to third 
                        parties; and</DELETED>
                        <DELETED>    ``(ii) engages in the business of 
                        making commercial loans (and, for purposes of 
                        this clause, loans made in the ordinary course 
                        of a credit card operation shall not be treated 
                        as commercial loans); or</DELETED>
                <DELETED>    ``(D) after the date of enactment of the 
                Competitive Equality Amendments of 1987, any bank 
                subsidiary of such company permits any overdraft 
                (including any intraday overdraft), or incurs any such 
                overdraft in the account of the bank at a Federal 
                reserve bank, on behalf of an affiliate, other than an 
                overdraft described in paragraph (3).''.</DELETED>

<DELETED>SEC. 117. DIVESTITURE REQUIREMENT.</DELETED>

<DELETED>    (a) In General.--Section 4(f)(4) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)(4)) is amended to read as 
follows:</DELETED>
        <DELETED>    ``(4) Divestiture in case of loss of exemption.--
        If any company described in paragraph (1) fails to qualify for 
        the exemption provided under such paragraph by operation of 
        paragraph (2), such exemption shall cease to apply to such 
        company and such company shall divest control of each bank it 
        controls before the end of the 180-day period beginning on the 
        date that the company receives notice from the Board that the 
        company has failed to continue to qualify for such exemption, 
        unless before the end of such 180-day period, the company has--
        </DELETED>
                <DELETED>    ``(A) either--</DELETED>
                        <DELETED>    ``(i) corrected the condition or 
                        ceased the activity that caused the company to 
                        fail to continue to qualify for the exemption; 
                        or</DELETED>
                        <DELETED>    ``(ii) submitted a plan to the 
                        Board for approval to cease the activity or 
                        correct the condition in a timely manner (which 
                        shall not exceed 1 year); and</DELETED>
                <DELETED>    ``(B) implemented procedures that are 
                reasonably adapted to avoid the reoccurrence of such 
                condition or activity.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--Section 4(f)(2) 
of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(2)) is 
amended by striking ``Paragraph (1) shall cease to apply to any company 
described in such paragraph if--'' and inserting ``A company described 
in paragraph (1) shall no longer qualify for the exemption provided 
under such paragraph if--''.</DELETED>

<DELETED>SEC. 118. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN 
              BANKS.</DELETED>

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

<DELETED>``SEC. 11B. DAYLIGHT OVERDRAFTS INCURRED BY FEDERAL HOME LOAN 
              BANKS.</DELETED>

<DELETED>    ``(a) In General.--Any policy or regulation adopted by the 
Board governing payment system risk or intraday credit shall--
</DELETED>
        <DELETED>    ``(1) include--</DELETED>
                <DELETED>    ``(A) the establishment of net debit caps 
                appropriate to the credit quality of each Federal Home 
                Loan Bank; and</DELETED>
                <DELETED>    ``(B) the imposition of normal fees for 
                daylight overdrafts, calculated in the same manner as 
                fees for other users; or</DELETED>
        <DELETED>    ``(2) exempt Federal Home Loan Banks from such 
        policy or regulation.</DELETED>
<DELETED>    ``(b) Definition.--For purposes of this section, the term 
`Federal Home Loan Bank' has the same meaning as in section 2 of the 
Federal Home Loan Bank Act.''.</DELETED>

<DELETED>SEC. 119. FEDERAL HOME LOAN BANK GOVERNANCE 
              AMENDMENTS.</DELETED>

<DELETED>    The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) in section 7(i) (12 U.S.C. 1427(i)), by 
        striking ``, subject to the approval of the board'';</DELETED>
        <DELETED>    (2) in section 12(a) (12 U.S.C. 1432(a))--
        </DELETED>
                <DELETED>    (A) by striking ``, but, except'' and all 
                that follows through ``ten years'';</DELETED>
                <DELETED>    (B) by striking ``and by its board of 
                directors'' and all that follows through ``enjoyed 
                subject to the approval of the Board'' and inserting 
                ``and, by its board of directors, to prescribe, amend, 
                and repeal bylaws governing the manner in which its 
                affairs may be administered, consistent with this 
                Act''; and</DELETED>
                <DELETED>    (C) by adding at the end the following: 
                ``A Federal home loan bank shall not be required to 
                submit to the board of directors of the bank for its 
                approval, budget or business plans, including annual 
                operating and capital budgets, strategic plans, or 
                business plans.'';</DELETED>
        <DELETED>    (3) in section 9 (12 U.S.C. 1429)--</DELETED>
                <DELETED>    (A) in the second sentence, by striking 
                ``with the approval of the Board''; and</DELETED>
                <DELETED>    (B) in the third sentence, by striking ``, 
                subject to the approval of the Board,'';</DELETED>
        <DELETED>    (4) in section 10(a)(5) (12 U.S.C. 1430(a)(5))--
        </DELETED>
                <DELETED>    (A) by striking ``and the Board''; 
                and</DELETED>
                <DELETED>    (B) by striking ``by the Board'' and 
                inserting ``by the Federal home loan bank''.</DELETED>
        <DELETED>    (5) in section 10(c) (12 U.S.C. 1430(c)), by 
        striking ``Board'' and inserting ``Federal home loan 
        bank'';</DELETED>
        <DELETED>    (6) in section 10(d) (12 U.S.C. 1430(d))--
        </DELETED>
                <DELETED>    (A) by striking ``and the approval of the 
                Board''; and</DELETED>
                <DELETED>    (B) by striking ``Subject to the approval 
                of the Board, any'' and inserting ``Any''; 
                and</DELETED>
        <DELETED>    (7) in section 16(a) (12 U.S.C. 1436(a)), by 
        striking ``, and then only with the approval of the Federal 
        Housing Finance Board''.</DELETED>

<DELETED>SEC. 120. COLLATERALIZATION OF ADVANCES TO MEMBERS.</DELETED>

<DELETED>    Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 
1430(a)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (1) and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) Fully disbursed, whole first mortgages on 
        improved residential property that are not more than 90 days 
        delinquent, mortgages on improved residential property insured 
        or guaranteed by the United States Government or any agency 
        thereof, or securities representing a whole interest in such 
        mortgages.''; and</DELETED>
        <DELETED>    (2) in paragraph (4), by striking ``If an 
        advance'' and all that follows through ``is 
        appropriate.''.</DELETED>

  <DELETED>TITLE II--STREAMLINING ACTIVITIES OF INSTITUTIONS</DELETED>

<DELETED>SEC. 201. UPDATING OF AUTHORITY FOR COMMUNITY DEVELOPMENT 
              INVESTMENTS.</DELETED>

<DELETED>    Section 5(c)(3)(A) of the Home Owners' Loan Act (12 U.S.C. 
1464(c)(3)(A)) is amended by striking ``located'' and all that follows 
through ``1974'' and inserting ``for the primary purpose of promoting 
the public welfare, including the welfare of low- and moderate-income 
communities or families (including the provision of housing, services, 
or jobs)''.</DELETED>

<DELETED>SEC. 202. ACCEPTANCE OF BROKERED DEPOSITS.</DELETED>

<DELETED>    Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 
1831f) is amended--</DELETED>
        <DELETED>    (1) by striking subsections (e) and (h);</DELETED>
        <DELETED>    (2) by redesignating subsections (f) through (g) 
        as subsections (e) through (f), respectively;</DELETED>
        <DELETED>    (3) in subsection (f), as redesignated, by 
        striking paragraph (3) and redesignating paragraph (4) as 
        paragraph (3); and</DELETED>
        <DELETED>    (4) by adding at the end the following new 
        subsection:</DELETED>
<DELETED>    ``(g) Deposit Solicitations Restricted.--</DELETED>
        <DELETED>    ``(1) In general.--An insured depository 
        institution may not solicit deposits by offering rates of 
        interest that are significantly higher than the national rate 
        of interest on insured deposits, as established by the 
        Corporation, if--</DELETED>
                <DELETED>    ``(A) the institution is undercapitalized 
                or adequately capitalized, as those terms are defined 
                in section 38; or</DELETED>
                <DELETED>    ``(B) the Corporation has been appointed 
                conservator for the institution.</DELETED>
        <DELETED>    ``(2) Exclusion.--Paragraph (1) does not apply to 
        an insured depository institution that is well capitalized, as 
        defined in section 38.''.</DELETED>

<DELETED>SEC. 203. FEDERAL RESERVE ACT LENDING LIMITS.</DELETED>

<DELETED>    Section 11 of the Federal Reserve Act (12 U.S.C. 248) is 
amended--</DELETED>
        <DELETED>    (1) by striking subsection (m); and</DELETED>
        <DELETED>    (2) by redesignating subsection (o) as subsection 
        (m).</DELETED>

<DELETED>SEC. 204. ELIMINATE UNNECESSARY RESTRICTIONS ON PRODUCT 
              MARKETING.</DELETED>

<DELETED>    Section 106(b) of the Bank Holding Company Act Amendments 
of 1970 (12 U.S.C. 1972) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (1);</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) by striking ``(2)''; and</DELETED>
                <DELETED>    (B) by redesignating subparagraphs (A) 
                through (I) as paragraphs (1) through (9), 
                respectively;</DELETED>
        <DELETED>    (3) in paragraph (6), as redesignated--</DELETED>
                <DELETED>    (A) by redesignating clauses (i) through 
                (ix) as subparagraphs (A) through (I), 
                respectively;</DELETED>
                <DELETED>    (B) by striking ``clause (i)'' each place 
                it appears and inserting ``subparagraph 
                (A)'';</DELETED>
                <DELETED>    (C) in subparagraph (B), as redesignated--
                </DELETED>
                        <DELETED>    (i) by redesignating subclauses 
                        (I) and (II) as clauses (i) and (ii), 
                        respectively;</DELETED>
                        <DELETED>    (ii) by striking ``(aa)'' each 
                        place it appears and inserting 
                        ``(I)'';</DELETED>
                        <DELETED>    (iii) by striking ``(bb)'' each 
                        place it appears and inserting ``(II)''; 
                        and</DELETED>
                        <DELETED>    (iv) by striking ``(cc)'' each 
                        place it appears and inserting 
                        ``(III)'';</DELETED>
                <DELETED>    (D) in subparagraph (C), as redesignated--
                </DELETED>
                        <DELETED>    (i) by striking ``clauses (i) and 
                        (ii)'' and inserting ``subparagraphs (A) and 
                        (B)'';</DELETED>
                        <DELETED>    (ii) by redesignating subclauses 
                        (I) and (II) as clauses (i) and (ii), 
                        respectively;</DELETED>
                        <DELETED>    (iii) in clause (i), as 
                        redesignated, by redesignating items (aa) 
                        through (cc) as subclauses (I) through (III), 
                        respectively; and</DELETED>
                        <DELETED>    (iv) by striking ``clause (iv)'' 
                        and inserting ``subparagraph (D)'';</DELETED>
                <DELETED>    (E) in subparagraph (D), as redesignated--
                </DELETED>
                        <DELETED>    (i) by striking ``clause (iii)'' 
                        each place it appears and inserting 
                        ``subparagraph (C)'';</DELETED>
                        <DELETED>    (ii) by redesignating subclauses 
                        (I) and (II) as clauses (i) and (ii), 
                        respectively;</DELETED>
                        <DELETED>    (iii) by striking ``(aa)'' and 
                        inserting ``(I)''; and</DELETED>
                        <DELETED>    (iv) by striking ``(bb)'' and 
                        inserting ``(II)''; and</DELETED>
                <DELETED>    (F) in subparagraph (E), as redesignated--
                </DELETED>
                        <DELETED>    (i) by striking ``(ii) or (iii)'' 
                        and inserting ``(B), or (C)''; and</DELETED>
                        <DELETED>    (ii) by redesignating subclauses 
                        (I) through (III) as clauses (i) through (iii), 
                        respectively;</DELETED>
        <DELETED>    (4) in paragraph (7), as redesignated--</DELETED>
                <DELETED>    (A) by redesignating clauses (i) and (ii) 
                as subparagraphs (A) and (B), respectively; 
                and</DELETED>
                <DELETED>    (B) in subparagraph (A), as redesignated--
                </DELETED>
                        <DELETED>    (i) by redesignating paragraphs 
                        (1) through (4) as clauses (i) through (iv), 
                        respectively;</DELETED>
                        <DELETED>    (ii) by striking ``(a)'' each 
                        place it appears and inserting 
                        ``(I)'';</DELETED>
                        <DELETED>    (iii) by striking ``(b)'' each 
                        place it appears and inserting ``(II)''; 
                        and</DELETED>
                        <DELETED>    (iv) by striking ``(c)'' each 
                        place it appears and inserting 
                        ``(III)'';</DELETED>
        <DELETED>    (5) by striking ``this paragraph'' each place it 
        appears and inserting ``this subsection''; and</DELETED>
        <DELETED>    (6) by striking ``this subparagraph'' each place 
        it appears and inserting ``this paragraph''.</DELETED>

<DELETED>SEC. 205. BUSINESS PURPOSE CREDIT EXTENSIONS.</DELETED>

<DELETED>    Section 4 of the Bank Holding Company Act of 1956 (12 
U.S.C. 1843) is amended by adding at the end the following new 
subsection:</DELETED>
<DELETED>    ``(k) Business Purpose Credit Extensions.--</DELETED>
        <DELETED>    ``(1) In general.--An institution referred to in 
        section 2(c)(2)(F) or 4(f)(3) may engage in the provision of 
        credit card accounts for business purposes, including the 
        issuance of such accounts to small businesses.</DELETED>
        <DELETED>    ``(2) Definition.--For purposes of this 
        subsection, the term `credit card' has the same meaning as in 
        section 103 of the Truth In Lending Act (15 U.S.C. 
        1602).''.</DELETED>

<DELETED>SEC. 206. AFFINITY GROUPS.</DELETED>

<DELETED>    (a) Definitions.--For purposes of this section--</DELETED>
        <DELETED>    (1) the term ``affinity group'' means any person, 
        other than an individual, that--</DELETED>
                <DELETED>    (A) is established for a common objective 
                or purpose;</DELETED>
                <DELETED>    (B) is not established by 1 or more 
                settlement service providers for the principal purpose 
                of endorsing the products or services of a settlement 
                service provider;</DELETED>
                <DELETED>    (C) the common objective or purpose of 
                which is not principally the conduct of settlement 
                services; and</DELETED>
                <DELETED>    (D) does not consist of member 
                organizations whose principal business is providing 
                settlement services; and</DELETED>
        <DELETED>    (2) the terms ``person'', ``settlement services'', 
        and ``thing of value'' have the meanings given those terms in 
        section 3 of the Real Estate Settlement Procedures Act of 1974 
        (12 U.S.C. 2602).</DELETED>
<DELETED>    (b) Marketing Modernization.--Notwithstanding any other 
provision of law, it shall not be unlawful to make a payment or 
otherwise transfer any thing of value to an affinity group for or in 
connection with an endorsement (written or oral), either through an 
advertisement or through a communication addressed to a consumer by 
name or by mailing address, of the products or services of a settlement 
service provider, if disclosure is clearly made at the time of the 
first written communication with the consumer of the fact that a 
payment has been made or may be made or any other thing of value may 
accrue to the affinity group for the endorsement.</DELETED>

<DELETED>SEC. 207. FAIR DEBT COLLECTION PRACTICES.</DELETED>

<DELETED>    (a) Exemption for Communications Involving Legal 
Proceedings.--Section 803 of the Fair Debt Collection Practices Act (15 
U.S.C. 1692a) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)--</DELETED>
                <DELETED>    (A) by striking ``communication' means 
                the'' and inserting the following: ``communication'--
                </DELETED>
                <DELETED>    ``(A) means the''; and</DELETED>
                <DELETED>    (B) by striking the period at the end and 
                inserting the following: ``; and</DELETED>
                <DELETED>    ``(B) does not include communications made 
                pursuant to the Federal Rules of Civil Procedure, in 
                the case of a proceeding in a State court, the rules of 
                civil procedure available under the laws of that State, 
                or a nonjudicial foreclosure proceeding.''; 
                and</DELETED>
        <DELETED>    (2) in paragraph (5)--</DELETED>
                <DELETED>    (A) by striking ``debt' means any'' and 
                inserting the following: ``debt'--</DELETED>
                <DELETED>    ``(A) means any'';</DELETED>
                <DELETED>    (B) by striking the period at the end and 
                inserting the following: ``; and</DELETED>
                <DELETED>    ``(B) does not include a draft drawn on a 
                bank for a sum certain, payable on demand and signed by 
                the maker.''.</DELETED>
<DELETED>    (b) Collection Activity Following Initial Notice.--Section 
809 of the Fair Debt Collection Practices Act (15 U.S.C. 1692(g)) is 
amended by adding at the end the following new subsection:</DELETED>
<DELETED>    ``(d) Continuation During Period.--Collection activities 
and communications may continue during the 30-day period described in 
subsection (a) unless the consumer requests the cessation of such 
activities.''.</DELETED>
<DELETED>    (c) Definition of ``Communication''.--Section 803 of the 
Fair Debt Collection Practices Act (15 U.S.C. 1692a) is amended--
</DELETED>
        <DELETED>    (1) by striking ``title--'' and inserting ``title, 
        the following definitions shall apply:''; and</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) by striking ``term `communication' 
                means'' and inserting ``term `communication'--
                </DELETED>
                <DELETED>    ``(A) means'';</DELETED>
                <DELETED>    (B) by striking the period at the end and 
                inserting ``; and</DELETED>
                <DELETED>    ``(B) does not include any communication 
                made or action taken to collect on loans made, insured, 
                or guaranteed under the Higher Education Act of 
                1965.''.</DELETED>

<DELETED>SEC. 208. RESTRICTION ON ACQUISITIONS OF OTHER INSURED 
              DEPOSITORY INSTITUTIONS.</DELETED>

<DELETED>    Section 4(f)(12) of the Bank Holding Company Act of 1956 
(12 U.S.C. 1843(f)(12)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking ``or'' at the 
        end;</DELETED>
        <DELETED>    (2) in subparagraph (B), by striking the period at 
        the end and inserting ``; or''; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        subparagraph:</DELETED>
                <DELETED>    ``(C) in an acquisition in which the 
                insured institution has been found to be 
                undercapitalized by the appropriate Federal or State 
                authority.''.</DELETED>

<DELETED>SEC. 209. MUTUAL HOLDING COMPANIES.</DELETED>

<DELETED>    Section 10(o) of the Home Owners' Loan Act (12 U.S.C. 
1467a(o)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (1) and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) Reorganization.--A savings association 
        operating in mutual form may reorganize so as to become a 
        holding company--</DELETED>
                <DELETED>    ``(A) by chartering a savings association, 
                the stock of which is to be wholly owned, except as 
                otherwise provided in this section, directly or 
                indirectly by the mutual association and by 
                transferring the substantial part of its assets and 
                liabilities, by merger or otherwise, including all of 
                its insured liabilities, to the interim savings 
                association;</DELETED>
                <DELETED>    ``(B) by converting to a stock association 
                charter and simultaneously forming a subsidiary stock 
                holding company that owns 100 percent of the voting 
                stock of the converting association; or</DELETED>
                <DELETED>    ``(C) in any other manner approved by the 
                Director, including by the formation of a subsidiary 
                stock holding company, transferring assets and 
                liabilities by merger or otherwise to the subsidiary 
                stock holding company, or through the use of one or 
                more interim institutions.'';</DELETED>
        <DELETED>    (2) in paragraph (3)(D)--</DELETED>
                <DELETED>    (A) by striking ``savings association'' 
                and inserting ``the mutual holding company or 
                subsidiary stock holding company'';</DELETED>
                <DELETED>    (B) by striking ``such capital'' and 
                inserting ``the capital of the association'';</DELETED>
                <DELETED>    (C) by striking ``association's''; 
                and</DELETED>
                <DELETED>    (D) by inserting ``of the association'' 
                before ``established'';</DELETED>
        <DELETED>    (3) in paragraph (5)--</DELETED>
                <DELETED>    (A) by inserting ``or subsidiary stock 
                holding company'' before ``may engage'';</DELETED>
                <DELETED>    (B) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) by inserting ``or acquiring'' 
                        after ``Investing in''; and</DELETED>
                        <DELETED>    (ii) by inserting ``, savings 
                        bank, or bank'' before the period; 
                        and</DELETED>
                <DELETED>    (C) in subparagraph (C), by inserting ``or 
                bank'' before the period;</DELETED>
        <DELETED>    (4) by striking paragraph (7) and inserting the 
        following:</DELETED>
        <DELETED>    ``(7) Chartering and regulation.--</DELETED>
                <DELETED>    ``(A) In general.--A mutual holding 
                company shall be chartered by the Director, and a 
                subsidiary stock holding company may be chartered under 
                State law, and such holding companies shall be subject 
                to such regulations as the Director may prescribe. 
                Unless the context otherwise requires, a mutual holding 
                company shall be subject to the other requirements of 
                this section regarding regulation of holding 
                companies.</DELETED>
                <DELETED>    ``(B) Conversion to state charter.--A 
                mutual holding company organized pursuant to paragraph 
(1) may convert its charter to a State mutual holding company 
charter.</DELETED>
                <DELETED>    ``(C) Conversion to federal charter.--
                Notwithstanding any other provision of Federal law, a 
                mutual holding company organized under State law may 
                convert its State mutual holding company charter to a 
                Federal mutual holding company charter.'';</DELETED>
        <DELETED>    (5) in paragraph (8)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by inserting ``or 
                subsidiary stock holding company'' after ``company''; 
                and</DELETED>
                <DELETED>    (B) by striking subparagraph (B) and 
                inserting the following:</DELETED>
                <DELETED>    ``(B) Issuance of shares.--This section 
                shall not prohibit a savings association or subsidiary 
                stock holding company chartered as part of a 
                transaction described in paragraph (1) from--</DELETED>
                        <DELETED>    ``(i) issuing any nonvoting shares 
                        or less than 50 percent of the voting share of 
                        such association or subsidiary stock holding 
                        company to any person other than the mutual 
                        holding company;</DELETED>
                        <DELETED>    ``(ii) issuing all of the voting 
                        shares of such association to a subsidiary 
                        stock holding company, if more than 50 percent 
                        of the voting shares of the subsidiary stock 
                        holding company are owned by the mutual holding 
                        company; and</DELETED>
                        <DELETED>    ``(iii) issuing to any person 
                        other than the mutual holding company, in 
                        connection with the formation of the mutual 
                        holding company or at a later date, a separate 
                        class of voting shares, the rights and 
                        preferences of which are identical to those of 
                        the class of voting shares issued to the mutual 
                        holding company, except with respect to the 
                        payment of dividends.</DELETED>
                <DELETED>    ``(C) Mutual savings association.--In the 
                case of a mutual savings association in which holders 
                of accounts or obligors exercise voting rights, such 
                holders of accounts or obligors shall have the right to 
                subscribe on a priority basis for voting shares of the 
                subsidiary stock holding company or savings association 
                chartered pursuant to paragraph (1), pursuant to 
                regulations of the Director, but only with respect to 
                the voting shares issued in connection with the initial 
                reorganization pursuant to paragraph (1). The priority 
                subscription rights applicable to voting shares issued 
                to the mutual holding company in connection with the 
                initial reorganization pursuant to paragraph (1) shall 
                be exercisable at such time as the shares are 
                subsequently sold by the subsidiary savings association 
                or subsidiary stock holding company.'';</DELETED>
        <DELETED>    (6) in paragraph (9)(A)(i)(I), by inserting ``, 
        directly or indirectly,'' after ``owned''; and</DELETED>
        <DELETED>    (7) in paragraph (10)--</DELETED>
                <DELETED>    (A) by striking ``subsection--'' and 
                inserting ``subsection, the following definitions shall 
                apply:''; and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(D) Subsidiary stock holding company.--
                The term `subsidiary stock holding company' means a 
                stock holding company organized under applicable State 
                law, that is wholly-owned, except as otherwise provided 
                in this section, by the mutual holding 
                company.''.</DELETED>

<DELETED>SEC. 210. CALL REPORT SIMPLIFICATION.</DELETED>

<DELETED>    (a) Modernization of Call Report Filing and Disclosure 
System.--In order to reduce the administrative requirements pertaining 
to bank reports of condition, savings association financial reports, 
and bank holding company consolidated and parent-only financial 
statements, and to improve the timeliness of such reports and 
statements, the Federal banking agencies shall--</DELETED>
        <DELETED>    (1) work jointly to develop a system under which--
        </DELETED>
                <DELETED>    (A) insured depository institutions and 
                their affiliates may file such reports and statements 
                electronically; and</DELETED>
                <DELETED>    (B) the Federal banking agencies may make 
                such reports and statements available to the public 
                electronically; and</DELETED>
        <DELETED>    (2) not later than 1 year after the date of 
        enactment of this Act, report to the Congress and make 
        recommendations for legislation that would enhance efficiency 
        for filers and users of such reports and statements.</DELETED>
<DELETED>    (b) Uniform Reports and Simplification of Instructions.--
The Federal banking agencies shall, consistent with the principles of 
safety and soundness, work jointly--</DELETED>
        <DELETED>    (1) to adopt a single form for the filing of core 
        information required to be submitted under Federal law to all 
such agencies in the reports and statements referred to in subsection 
(a); and</DELETED>
        <DELETED>    (2) to simplify instructions accompanying such 
        reports and statements and to provide an index to the 
        instructions that is adequate to meet the needs of both filers 
        and users.</DELETED>
<DELETED>    (c) Review of Call Report Schedule.--Each Federal banking 
agency shall--</DELETED>
        <DELETED>    (1) review the information required by schedules 
        supplementing the core information referred to in subsection 
        (b); and</DELETED>
        <DELETED>    (2) eliminate requirements that are not warranted 
        for reasons of safety and soundness or other public 
        purposes.</DELETED>

       <DELETED>TITLE III--STREAMLINING AGENCY ACTIONS</DELETED>

<DELETED>SEC. 301. SCHEDULED MEETINGS OF AFFORDABLE HOUSING ADVISORY 
              BOARD.</DELETED>

<DELETED>    Section 14(b)(6)(A) of the Resolution Trust Corporation 
Completion Act (12 U.S.C. 1831q note) is amended--</DELETED>
        <DELETED>    (1) by striking ``4 times a year, or more 
        frequently if requested'' and inserting ``2 times a year, or as 
        requested''; and</DELETED>
        <DELETED>    (2) by striking ``In each year'' and all that 
        follows through ``located.''.</DELETED>

<DELETED>SEC. 302. ELIMINATION OF DUPLICATIVE DISCLOSURE OF FAIR MARKET 
              VALUE OF ASSETS AND LIABILITIES.</DELETED>

<DELETED>    Section 37(a)(3) of the Federal Deposit Insurance Act (12 
U.S.C. 1831n(a)(3)) is amended by striking subparagraph (D).</DELETED>

<DELETED>SEC. 303. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH SURPLUS 
              FUNDS.</DELETED>

<DELETED>    Section 11(d)(10) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(d)(10)) is amended by adding at the end the following new 
subparagraph:</DELETED>
                <DELETED>    ``(C) Rulemaking authority of 
                corporation.--The Corporation may prescribe such rules, 
                including definitions of terms, as it deems appropriate 
                to establish the interest rate for or to make payments 
                of postinsolvency interest to creditors holding proven 
                claims against the receivership estates of insured 
                Federal or State depository institutions following 
                satisfaction by the receiver of the principal amount of 
                all creditor claims.''.</DELETED>

<DELETED>SEC. 304. REPEAL OF REPORTING REQUIREMENT ON DIFFERENCES IN 
              ACCOUNTING STANDARDS.</DELETED>

<DELETED>    Section 37 of the Federal Deposit Insurance Act (12 U.S.C. 
1831n) is amended by striking subsection (c).</DELETED>

<DELETED>SEC. 305. AGENCY REVIEW OF COMPETITIVE FACTORS IN BANK MERGER 
              ACT FILINGS.</DELETED>

<DELETED>    (a) Report Required.--Section 18(c)(4) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(c)(4)) is amended by striking 
``request reports'' and all that follows through the end of the 
paragraph and inserting the following: ``request a report on the 
competitive factors involved from the Attorney General. The report 
shall be furnished not later than 30 calendar days after the date on 
which it is requested, or not later than 10 calendar days after such 
date if the requesting agency advises the Attorney General that an 
emergency exists requiring expeditious action.''.</DELETED>
<DELETED>    (b) Timing of Transaction.--Section 18(c)(6) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended by 
striking the third sentence and inserting the following: ``If the 
agency has advised the Attorney General of the existence of an 
emergency requiring expeditious action and has requested a report on 
the competitive factors within 10 days, the transaction may not be 
consummated before the fifth calendar day after the date of approval by 
the agency.''.</DELETED>
<DELETED>    (c) Evaluation of Competitive Effect.--</DELETED>
        <DELETED>    (1) Amendments to bank holding company act of 
        1956.--Section 3(c) of the Bank Holding Company Act of 1956 (12 
        U.S.C. 1842(c)) is amended--</DELETED>
                <DELETED>    (A) by adding at the end the following new 
                paragraph:</DELETED>
        <DELETED>    ``(6) Evaluation of competitive effect.--The Board 
        may not disapprove of a transaction pursuant to paragraph 
        (1)(B) unless the Board takes into account--</DELETED>
                <DELETED>    ``(A) competition from institutions, other 
                than depository institutions (as defined in section 3 
                of the Federal Deposit Insurance Act), that provide 
                financial services;</DELETED>
                <DELETED>    ``(B) efficiencies and cost savings that 
                the transaction may create;</DELETED>
                <DELETED>    ``(C) deposits of the participants in the 
                transaction that are not derived from the relevant 
                market;</DELETED>
                <DELETED>    ``(D) the capacity of savings associations 
                to make small business loans;</DELETED>
                <DELETED>    ``(E) lending by institutions other than 
                depository institutions to small businesses; 
                and</DELETED>
                <DELETED>    ``(F) such other factors as the Board 
                deems relevant.''; and</DELETED>
                <DELETED>    (B) in paragraph (1), by striking 
                ``restraint or trade'' and inserting ``restraint of 
                trade''.</DELETED>
        <DELETED>    (2) Amendments to federal deposit insurance act.--
        Section 18(c)(5) of the Federal Deposit Insurance Act (12 
        U.S.C. 1828(c)(5)) is amended--</DELETED>
                <DELETED>    (A) by redesignating subparagraphs (A) and 
                (B) as clauses (i) and (ii), respectively;</DELETED>
                <DELETED>    (B) by inserting ``(A)'' after 
                ``(5)'';</DELETED>
                <DELETED>    (C) by striking ``In every case'' and 
                inserting the following:</DELETED>
        <DELETED>    ``(B) In every case under this subsection''; 
        and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(C) The responsible agency may not disapprove of 
        a transaction pursuant to subparagraph (A), unless the agency 
        takes into account--</DELETED>
                <DELETED>    ``(i) competition from institutions that 
                provide financial services;</DELETED>
                <DELETED>    ``(ii) efficiencies and cost savings that 
                the transaction may create;</DELETED>
                <DELETED>    ``(iii) deposits of the participants in 
                the transaction that are not derived from the relevant 
                markets;</DELETED>
                <DELETED>    ``(iv) the capacity of the institutions to 
                make small business loans;</DELETED>
                <DELETED>    ``(v) lending by institutions other than 
                depository institutions to small businesses; 
                and</DELETED>
                <DELETED>    ``(vi) such other factors as the 
                responsible agency deems relevant.''.</DELETED>

<DELETED>SEC. 306. TERMINATION OF THE THRIFT DEPOSITOR PROTECTION 
              OVERSIGHT BOARD.</DELETED>

<DELETED>    (a) In General.--Effective 3 months after the date of 
enactment of this Act, the Thrift Depositor Protection Oversight Board 
established under section 21A of the Federal Home Loan Bank Act 
(hereafter in this section referred to as the ``Board'') is 
terminated.</DELETED>
<DELETED>    (b) Disposition of Affairs.--</DELETED>
        <DELETED>    (1) In general.--Effective on the date of 
        enactment of this Act, the Chairman of the Board (or the 
        designee of the Chairman) may exercise on behalf of the Board 
        any power of the Board necessary to settle and conclude the 
        affairs of the Board.</DELETED>
        <DELETED>    (2) Availability of funds.--Funds available to the 
        Board shall be available to the Chairman of the Board to pay 
        expenses incurred in carrying out paragraph (1).</DELETED>
<DELETED>    (c) Savings Provision.--</DELETED>
        <DELETED>    (1) Existing rights, duties, and obligations not 
        affected.--Nothing in this Act affects the validity of any 
        right, duty, or obligation of the United States, the Board, the 
        Resolution Trust Corporation, or any other person, that--
        </DELETED>
                <DELETED>    (A) arises under or pursuant to the 
                Federal Home Loan Bank Act, or any other provision of 
                law applicable with respect to the Board; and</DELETED>
                <DELETED>    (B) existed on the day before the 
                effective date of the termination of the Board under 
                this Act.</DELETED>
        <DELETED>    (2) Continuation of suits.--No action or other 
        proceeding commenced by or against the Board with respect to 
        any function of the Board shall abate by reason of the 
        enactment of this Act.</DELETED>
        <DELETED>    (3) Liabilities.--All liabilities arising out of 
        the operation of the Board during the period beginning on 
        August 9, 1989, and ending on the date that is 3 months after 
        the date of enactment of this Act shall remain the direct 
        liabilities of the United States. The Secretary of the Treasury 
        shall not be substituted for the Board as a party to any such 
        action or proceeding.</DELETED>
        <DELETED>    (4) Continuations of orders, resolutions, 
        determinations, and regulations pertaining to the resolution 
        funding corporation.--</DELETED>
                <DELETED>    (A) In general.--Each order, resolution, 
                determination, and regulation regarding the Resolution 
                Funding Corporation shall continue in effect according 
                to its terms until modified, terminated, set aside, or 
                superseded in accordance with applicable law, if such 
                order, resolution, determination, or regulation--
                </DELETED>
                        <DELETED>    (i) was issued, made, and 
                        prescribed, or allowed to become effective by 
                        the Board or by a court of competent 
                        jurisdiction, in the performance of functions 
                        transferred by this Act; and</DELETED>
                        <DELETED>    (ii) is in effect on the date that 
                        is 3 months after the date of enactment of this 
                        Act.</DELETED>
                <DELETED>    (B) Enforceability.--All orders, 
                resolutions, determinations, and regulations pertaining 
                to the Resolution Funding Corporation are enforceable 
                by and against--</DELETED>
                        <DELETED>    (i) the United States prior to the 
                        effective date of the transfer of 
                        responsibilities to the Secretary of the 
                        Treasury under this Act; and</DELETED>
                        <DELETED>    (ii) the Secretary of the Treasury 
                        on and after the effective date of the transfer 
                        of responsibilities to the Secretary of the 
                        Treasury under this Act.</DELETED>
<DELETED>    (d) Transfer of Certain Resolution Funding Corporation 
Responsibilities to Secretary of Treasury.--Effective 3 months after 
the date of enactment of this Act, the authorities and duties of the 
Board under sections 21A(a)(6)(I) and 21B of the Federal Home Loan Bank 
Act are transferred to the Secretary of the Treasury (or the designee 
of the Secretary).</DELETED>
<DELETED>    (e) Membership of the Affordable Housing Advisory Board.--
Effective on the date of enactment of this Act, section 14(b)(2) of the 
Resolution Trust Corporation Completion Act (12 U.S.C. 1831q note) is 
amended by striking subparagraph (C) and redesignating subparagraphs 
(D) and (E) as subparagraphs (C) and (D), respectively.</DELETED>

         <DELETED>TITLE IV--DISCLOSURE SIMPLIFICATION</DELETED>

<DELETED>SEC. 401. ALTERNATIVE COMPLIANCE METHOD FOR APR 
              DISCLOSURE.</DELETED>

<DELETED>    Section 127A(a)(2)(G) of the Truth in Lending Act (15 
U.S.C. 1637a(a)(2)(G)) is amended by inserting before the semicolon 
``or, at the option of the creditor, a statement that the periodic 
payments may increase or decrease substantially''.</DELETED>

<DELETED>SEC. 402. ALTERNATIVE COMPLIANCE METHODS FOR ADVERTISING 
              CREDIT TERMS.</DELETED>

<DELETED>    (a) Downpayment Amounts.--Section 144(d) of the Truth in 
Lending Act (15 U.S.C. 1664(d)) is amended--</DELETED>
        <DELETED>    (1) by striking ``or the number of installments or 
        the period of repayment, then''; and</DELETED>
        <DELETED>    (2) by inserting ``or'' before ``the 
        dollar''.</DELETED>
<DELETED>    (b) Alternative Disclosures.--Chapter 3 of the Truth in 
Lending Act (15 U.S.C. 1661 et seq.) is amended by adding at the end 
the following new section:</DELETED>

<DELETED>``SEC. 148. ALTERNATIVE DISCLOSURES.</DELETED>

<DELETED>    ``(a) In General.--A radio or television advertisement to 
aid, promote, or assist, directly or indirectly, any extension of 
consumer credit may satisfy the disclosure requirements in sections 
143, 144(d), 147(a), or 147(e), by complying with all of the 
requirements in subsections (b) and (c) of this section.</DELETED>
<DELETED>    ``(b) Information To Be Disclosed.--A radio or television 
advertisement referred to in subsection (a) complies with this 
subsection if it clearly and conspicuously sets forth, in such form and 
manner as the Board may require--</DELETED>
        <DELETED>    ``(1) the annual percentage rate of any finance 
        charge, and with respect to an open-end credit plan, the simple 
        interest rate or the periodic rate in addition to the annual 
        percentage rate;</DELETED>
        <DELETED>    ``(2) whether the interest rate may 
        vary;</DELETED>
        <DELETED>    ``(3) if the advertisement states an introductory 
        rate (or states with respect to a variable-rate plan an initial 
        rate that is not based on the index and margin used to make 
        later rate adjustments)--</DELETED>
                <DELETED>    ``(A) with equal prominence, the annual 
                percentage rate that will be in effect after the 
                introductory or initial rate period expires (or for a 
                variable-rate plan, a reasonably current annual 
                percentage rate that would have been in effect using 
                the index and margin); and</DELETED>
                <DELETED>    ``(B) the period during which the 
                introductory or initial rate will remain in 
                effect;</DELETED>
        <DELETED>    ``(4) the amount of any annual fee for an open-end 
        credit plan;</DELETED>
        <DELETED>    ``(5) a telephone number established in accordance 
        with subsection (c) that may be used by consumers to obtain all 
        of the information otherwise required to be disclosed pursuant 
        to sections 143 and 144(d), and subsections (a) and (e) of 
        section 147; and</DELETED>
        <DELETED>    ``(6) a statement that the consumer may use the 
        telephone number established in accordance with subsection (c) 
        to obtain further details about additional terms and costs 
        associated with the offer of credit.</DELETED>
<DELETED>    ``(c) Requirements for Telephone Numbers.--In the case of 
an advertisement described in subsection (b) that refers to a telephone 
number--</DELETED>
        <DELETED>    ``(1) the creditor shall establish the telephone 
        number for a broadcast area not later than the date on which 
        the advertisement is first broadcast in that area;</DELETED>
        <DELETED>    ``(2) the required information shall be available 
        by telephone for a broadcast area for a period of not less than 
        10 days following the date of the final broadcast of the 
        advertisement in that area;</DELETED>
        <DELETED>    ``(3) the creditor shall provide all of the 
        information that is otherwise required pursuant to sections 143 
        and 144(d), and subsections (a) and (e) of section 147 orally 
        by telephone or, if requested by the consumer, in written form; 
        and</DELETED>
        <DELETED>    ``(4) the consumer shall obtain the required 
        information by telephone without incurring any long-distance 
        charges.''.</DELETED>

               <DELETED>TITLE V--MISCELLANEOUS</DELETED>

<DELETED>SEC. 501. POSITIONS OF BOARD OF GOVERNORS OF FEDERAL RESERVE 
              SYSTEM ON THE EXECUTIVE SCHEDULE.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) Positions at level i of the executive 
        schedule.--Section 5312 of title 5, United States Code, is 
        amended by adding at the end the following:</DELETED>
        <DELETED>    ``Chairman, Board of Governors of the Federal 
        Reserve System.''.</DELETED>
        <DELETED>    (2) Positions at level ii of the executive 
        schedule.--Section 5313 of title 5, United States Code, is 
        amended--</DELETED>
                <DELETED>    (A) by striking ``Chairman, Board of 
                Governors of the Federal Reserve System.''; 
                and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``Members, Board of Governors of the Federal 
        Reserve System.''.</DELETED>
        <DELETED>    (3) Positions at level iii of the executive 
        schedule.--Section 5314 of title 5, United States Code, is 
        amended by striking ``Members, Board of Governors of the 
        Federal Reserve System.''.</DELETED>
<DELETED>    (b) Effective Date.--This section and the amendments made 
by this section shall take effect on the first day of the first pay 
period for the Chairman and Members of the Board of Governors of the 
Federal Reserve System beginning on or after the date of enactment of 
this section.</DELETED>

<DELETED>SEC. 502. CONSISTENT COVERAGE FOR INDIVIDUALS ENROLLED IN A 
              HEALTH PLAN ADMINISTERED BY THE FEDERAL BANKING 
              AGENCIES.</DELETED>

<DELETED>    (a) Enrollment in Chapter 89 Plan.--For purposes of 
chapter 89 of title 5, United States Code, any period of enrollment 
shall be deemed to be a period of enrollment in a health benefits plan 
under chapter 89 of such title, if such enrollment is--</DELETED>
        <DELETED>    (1) in a health benefits plan administered by the 
        Federal Deposit Insurance Corporation before the termination of 
        such plan on January 3, 1998; or</DELETED>
        <DELETED>    (2) subject to subsection (c), in a health 
        benefits plan (not under chapter 89 of such title) with respect 
        to which the eligibility of any employees or retired employees 
        of the Board of Governors of the Federal Reserve System 
        terminates on January 3, 1998.</DELETED>
<DELETED>    (b) Enrollment; Continued Coverage.--</DELETED>
        <DELETED>    (1) Enrollment.--Subject to subsection (c), any 
        individual who, on January 3, 1998, is enrolled in a health 
        benefits plan described in paragraph (1) or (2) of subsection 
        (a) may enroll in an approved health benefits plan under 
        chapter 89 of title 5, United States Code, either as an 
        individual or for self and family, if, after taking into 
        account the provisions of subsection (a), such individual--
        </DELETED>
                <DELETED>    (A) meets the requirements of that chapter 
                89 for eligibility to become so enrolled as an 
                employee, annuitant, or former spouse (within the 
                meaning of that chapter); or</DELETED>
                <DELETED>    (B) would meet the requirements of that 
                chapter 89 if, to the extent such requirements involve 
                either retirement system under such title 5, such 
                individual satisfies similar requirements or provisions 
                of the Retirement Plan for Employees of the Federal 
                Reserve System.</DELETED>
        <DELETED>    (2) Determinations.--Any determination under 
        paragraph (1)(B) shall be made under guidelines established by 
        the Office of Personnel Management in consultation with the 
        Board of Governors of the Federal Reserve System.</DELETED>
        <DELETED>    (3) Continued coverage.--Subject to subsection 
        (c), any individual who, on January 3, 1998, is entitled to 
        continued coverage under a health benefits plan described in 
        paragraph (1) or (2) of subsection (a) shall be deemed to be 
        entitled to continued coverage under section 8905a of title 5, 
        United States Code, but only for the same remaining period as 
        would have been allowable under the health benefits plan in 
        which such individual was enrolled on January 3, 1998, if--
        </DELETED>
                <DELETED>    (A) the individual had remained enrolled 
                in that plan; and</DELETED>
                <DELETED>    (B) that plan did not terminate, or the 
                eligibility of such individual with respect to that 
                plan did not terminate, as described in subsection 
                (a).</DELETED>
        <DELETED>    (4) Comparable treatment.--Subject to subsection 
        (c), any individual (other than an individual under paragraph 
        (3)) who, on January 3, 1998, is covered under a health 
        benefits plan described in paragraph (1) or (2) of subsection 
        (a) as an unmarried dependent child, but who does not then 
        qualify for coverage under chapter 89 of title 5, United States 
        Code, as a family member (within the meaning of that chapter) 
        shall be deemed to be entitled to continued coverage under 
        section 8905a of that title, to the same extent and in the same 
        manner as if such individual had, on January 3, 1998, ceased to 
        meet the requirements for being considered an unmarried 
        dependent child of an enrollee under such chapter.</DELETED>
        <DELETED>    (5) Effective date.--Coverage under chapter 89 of 
        title 5, United States Code, pursuant to an enrollment under 
        this section shall become effective on January 4, 
        1998.</DELETED>
<DELETED>    (c) Eligibility for FEHBP Limited to Individuals Losing 
Eligibility Under Former Health Plan.--Nothing in subsection (a)(2) or 
any paragraph of subsection (b) (to the extent that paragraph (2) 
relates to the plan described in subsection (a)(2)) shall be considered 
to apply with respect to any individual whose eligibility for coverage 
under the plan does not involuntarily terminate on January 3, 
1998.</DELETED>
<DELETED>    (d) Transfers to the Employees Health Benefits Fund.--The 
Federal Deposit Insurance Corporation and the Board of Governors of the 
Federal Reserve System shall transfer to the Employees Health 
Benefits Fund, under section 8909 of title 5, United States Code, 
amounts determined by the Director of the Office of Personnel 
Management, after consultation with the Federal Deposit Insurance 
Corporation and the Board of Governors of the Federal Reserve System, 
to be necessary to reimburse the Fund for the cost of providing 
benefits under this section not otherwise paid for by the individuals 
covered by this section. The amounts so transferred shall be held in 
the Fund and used by the Office of Personnel Management in addition to 
amounts available under section 8906(g)(1) of title 5, United States 
Code.</DELETED>
<DELETED>    (e) Administration and Regulations.--The Office of 
Personnel Management--</DELETED>
        <DELETED>    (1) shall administer the provisions of this 
        section to provide for--</DELETED>
                <DELETED>    (A) a period of notice and open enrollment 
                for individuals affected by this section; and</DELETED>
                <DELETED>    (B) no lapse of health coverage for 
                individuals who enroll in a health benefits plan under 
                chapter 89 of title 5, United States Code, in 
                accordance with this section; and</DELETED>
        <DELETED>    (2) may prescribe regulations to implement this 
        section.</DELETED>

<DELETED>SEC. 503. FEDERAL HOUSING FINANCE BOARD.</DELETED>

<DELETED>    Section 2A(b)(2) of the Federal Home Loan Bank Act (12 
U.S.C. 1422a(b)(2)) is amended--</DELETED>
        <DELETED>    (1) by striking subparagraph (B); and</DELETED>
        <DELETED>    (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively.</DELETED>

           <DELETED>TITLE VI--TECHNICAL CORRECTIONS</DELETED>

<DELETED>SEC. 601. TECHNICAL CORRECTION RELATING TO DEPOSIT INSURANCE 
              FUNDS.</DELETED>

<DELETED>    (a) In General.--Section 2707 of the Deposit Insurance 
Funds Act of 1996 (Public Law 104-208; 110 Stat. 3009-496) is amended 
by striking ``7(b)(2)(C)'' and inserting ``7(b)(2)(E)''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by subsection (a) 
shall be deemed to have the same effective date as section 2707 of the 
Deposit Insurance Funds Act of 1996.</DELETED>

<DELETED>SEC. 602. RULES FOR CONTINUATION OF DEPOSIT INSURANCE FOR 
              MEMBER BANKS CONVERTING CHARTERS.</DELETED>

<DELETED>    Section 8(o) of the Federal Deposit Insurance Act (12 
U.S.C. 1818(o)) is amended in the second sentence, by striking 
``subsection (d) of section 4'' and inserting ``subsection (c) or (d) 
of section 4''.</DELETED>

<DELETED>SEC. 603. AMENDMENTS TO THE REVISED STATUTES.</DELETED>

<DELETED>    (a) Waiver of Citizenship Requirement for National Bank 
Directors.--Section 5146 of the Revised Statutes of the United States 
(12 U.S.C. 72) is amended in the first sentence, by inserting before 
the period ``, and waive the requirement of citizenship in the case of 
not more than a minority of the total number of directors''.</DELETED>
<DELETED>    (b) Technical Amendment to the Revised Statutes.--Section 
329 of the Revised Statutes of the United States (12 U.S.C. 11) is 
amended by striking ``to be interested in any association issuing 
national currency under the laws of the United States'' and inserting 
``to hold an interest in any national bank''.</DELETED>
<DELETED>    (c) Repeal of Unnecessary Capital and Surplus 
Requirement.--Section 5138 of the Revised Statutes of the United States 
(12 U.S.C. 51) is repealed.</DELETED>

<DELETED>SEC. 604. CONFORMING CHANGE TO THE INTERNATIONAL BANKING 
              ACT.</DELETED>

<DELETED>    Section 4(b) of the International Banking Act of 1978 (12 
U.S.C. 3102(b)) is amended in the second sentence, by striking 
paragraph (1) and by redesignating paragraphs (2) through (4) as 
paragraphs (1) through (3), respectively.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Financial 
Regulatory Relief and Economic Efficiency Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

TITLE I--IMPROVING MONETARY POLICY AND FINANCIAL INSTITUTION MANAGEMENT 
                               PRACTICES

Sec. 101. Payment of interest on reserves at Federal reserve banks.
Sec. 102. Amendments relating to interest on certain accounts at 
                            depository institutions.
Sec. 103. Repeal of savings association liquidity provision.
Sec. 104. Repeal of dividend notice requirement.
Sec. 105. Thrift service companies.
Sec. 106. Elimination of thrift multistate multiple holding company 
                            restrictions.
Sec. 107. Noncontrolling investments by savings association holding 
                            companies.
Sec. 108. Repeal of deposit broker notification and recordkeeping 
                            requirement.
Sec. 109. Uniform regulation of extensions of credit to executive 
                            officers.
Sec. 110. Expedited procedures for certain reorganizations.
Sec. 111. National bank directors.
Sec. 112. Amendment to Bank Consolidation and Merger Act.
Sec. 113. Loans on or purchases by institutions of their own stock; 
                            affiliations.
Sec. 114. Depository institution management interlocks.
Sec. 115. Purchased mortgage servicing rights.
Sec. 116. Cross marketing restriction; limited purpose bank relief.
Sec. 117. Divestiture requirement.

           TITLE II--STREAMLINING ACTIVITIES OF INSTITUTIONS

Sec. 201. Updating of authority for community development investments.
Sec. 202. Federal Reserve Act lending limits.
Sec. 203. Business purpose credit extensions.
Sec. 204. Affinity groups.
Sec. 205. Fair debt collection practices.
Sec. 206. Restriction on acquisitions of other insured depository 
                            institutions.
Sec. 207. Mutual holding companies.
Sec. 208. Call report simplification.

                 TITLE III--STREAMLINING AGENCY ACTIONS

Sec. 301. Elimination of duplicative disclosure of fair market value of 
                            assets and liabilities.
Sec. 302. Payment of interest in receiverships with surplus funds.
Sec. 303. Repeal of reporting requirement on differences in accounting 
                            standards.
Sec. 304. Agency review of competitive factors in Bank Merger Act 
                            filings.
Sec. 305. Elimination of SAIF and DIF special reserves.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Alternative compliance methods for advertising credit terms.
Sec. 402. Positions of Board of Governors of Federal Reserve System on 
                            the Executive Schedule.
Sec. 403. Consistent coverage for individuals enrolled in a health plan 
                            administered by the Federal banking 
                            agencies.
Sec. 404. Federal Housing Finance Board.
Sec. 405. Reports by indenture trustee.

                     TITLE V--TECHNICAL CORRECTIONS

Sec. 501. Technical correction relating to deposit insurance funds.
Sec. 502. Rules for continuation of deposit insurance for member banks 
                            converting charters.
Sec. 503. Amendments to the Revised Statutes.
Sec. 504. Conforming change to the International Banking Act of 1978.

TITLE I--IMPROVING MONETARY POLICY AND FINANCIAL INSTITUTION MANAGEMENT 
                               PRACTICES

SEC. 101. PAYMENT OF INTEREST ON RESERVES AT FEDERAL RESERVE BANKS.

    (a) In General.--Section 19(b) of the Federal Reserve Act (12 
U.S.C. 461(b)) is amended by adding at the end the following new 
paragraph:
            ``(12) Earnings on reserves.--
                    ``(A) In general.--Balances maintained at a Federal 
                reserve bank by or on behalf of a depository 
                institution may receive earnings, to be paid by the 
                Federal reserve bank at least once in each calendar 
                quarter, at a rate or rates not to exceed the general 
                level of short-term interest rates.
                    ``(B) Regulations relating to payments and 
                distribution.--The Board may prescribe regulations 
                concerning--
                            ``(i) the payment of earnings in accordance 
                        with this paragraph;
                            ``(ii) the distribution of such earnings to 
                        the depository institutions which maintain 
                        balances at such banks, or on behalf of which 
                        such balances are maintained; and
                            ``(iii) the responsibilities of depository 
                        institutions, Federal home loan banks, and the 
                        National Credit Union Administration Central 
                        Liquidity Facility with respect to the 
                        crediting and distribution of earnings 
                        attributable to balances maintained, in 
                        accordance with subsection (c)(1)(B), in a 
                        Federal reserve bank by any such entity on 
                        behalf of depository institutions which are not 
                        member banks.''.
    (b) Authorization for Pass Through Reserves for Member Banks.--
Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C. 461(c)(1)(B)) 
is amended by striking ``which is not a member bank''.
    (c) Technical and Conforming Amendments.--Section 19 of the Federal 
Reserve Act (12 U.S.C. 461) is amended--
            (1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by striking 
        subparagraph (C) and redesignating subparagraphs (D) and (E) as 
        subparagraphs (C) and (D), respectively; and
            (2) in subsection (c)(1)(A) (12 U.S.C. 461(c)(1)(A)), by 
        striking ``subsection (b)(4)(C)'' and inserting ``subsection 
        (b)''.

SEC. 102. AMENDMENTS RELATING TO INTEREST ON CERTAIN ACCOUNTS AT 
              DEPOSITORY INSTITUTIONS.

    (a) Interest-Bearing Transaction Accounts Authorized for All 
Businesses.--Section 2 of Public Law 93-100 (12 U.S.C. 1832) is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following:
    ``(b) Notwithstanding any other provision of law, any depository 
institution may, before January 1, 2001, permit the owner of any 
deposit or account on which interest or dividends are paid to make up 
to 24 transfers per month, for any purpose, to another account of the 
owner in the same institution. Nothing in this subsection shall be 
construed to prevent an account offered pursuant to this subsection 
from being considered a transaction account (as defined in section 
19(b) of the Federal Reserve Act (12 U.S.C. 461(b)) for purposes of 
that Act.''.
    (b) Amendments Relating to Savings and Demand Deposit Accounts at 
Depository Institutions.--
            (1) NOW accounts authorized for all businesses.--Section 2 
        of Public Law 93-100 (12 U.S.C. 1832(a)(2)) is amended to read 
        as follows:

``SEC. 2. WITHDRAWALS BY NEGOTIABLE OR TRANSFERABLE INSTRUMENTS FOR 
              TRANSFERS TO THIRD PARTIES.

    ``Notwithstanding any other provision of law, any depository 
institution (as defined in section 3 of the Federal Deposit Insurance 
Act) may permit the owner of any deposit or account to make withdrawals 
from such deposit or account by negotiable or transferable instruments 
for the purpose of making payments to third parties.''.
            (2) Repeal of prohibition on payment of interest on demand 
        deposits.--
                    (A) Federal reserve act.--Section 19(i) of the 
                Federal Reserve Act (12 U.S.C. 371a(i)) is amended to 
                read as follows:
    ``(i) [Reserved].''.
                    (B) Home owners' loan act.--Section 5(b)(1)(B) of 
                the Home Owners' Loan Act (12 U.S.C. 1464(b)(1)(B)) is 
                amended in the first sentence, by striking ``savings 
                association may not--'' and all that follows through 
                ``(ii) permit any'' and inserting ``savings association 
                may not permit any''.
                    (C) Federal deposit insurance act.--Section 18(g) 
                of the Federal Deposit Insurance Act (12 U.S.C. 
                1828(g)) is amended to read as follows:
    ``(g) [Reserved].''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on January 1, 2001.

SEC. 103. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY PROVISION.

    (a) Repeal of Liquidity Provision.--Section 6 of the Home Owners' 
Loan Act (12 U.S.C. 1465) is repealed.
    (b) Conforming Amendments.--
            (1) Section 5.--Section 5(c)(1)(M) of the Home Owners' Loan 
        Act (12 U.S.C. 1464(c)(1)(M)) is amended to read as follows:
                    ``(M) Liquidity investments.--Investments 
                identified by the Director, including cash, funds on 
                deposit at a Federal reserve bank or a Federal home 
                loan bank, or bankers' acceptances.''.
            (2) Section 10.--Section 10(m)(4)(B)(iii) of the Home 
        Owners' Loan Act (12 U.S.C. 1467a(m)(4)(B)(iii)) is amended by 
        striking ``liquid assets'' and all that follows through ``Loan 
        Act,'' and inserting ``cash and marketable securities 
        identified by the Director,''.

SEC. 104. REPEAL OF DIVIDEND NOTICE REQUIREMENT.

    Section 10(f) of the Home Owners' Loan Act (12 U.S.C. 1467a(f)) is 
amended to read as follows:
    ``(f) [Reserved].''.

SEC. 105. THRIFT SERVICE COMPANIES.

    (a) Streamlining Thrift Service Company Investment Requirements.--
Section 5(c)(4)(B) of the Home Owners' Loan Act (12 U.S.C. 
1464(c)(4)(B)) is amended--
            (1) in the subparagraph heading, by striking 
        ``corporations'' and inserting ``companies''; and
            (2) in the first sentence, by striking ``corporation 
        organized'' and all that follows through ``such State.'' and 
        inserting ``company, if such company engages or will engage 
        only in activities reasonably related to the activities of 
        financial institutions, as the Director may determine and 
        approve. For purposes of this subparagraph, the term `company' 
        includes any corporation and any limited liability company (as 
        defined in section 1(b)(7) of the Bank Service Company Act).''.
    (b) Conforming Amendments to Section 8 of the Federal Deposit 
Insurance Act.--Section 8 of the Federal Deposit Insurance Act (12 
U.S.C. 1818) is amended--
            (1) in subsection (b)(9), by striking ``to any service 
        corporation of a savings association and to any subsidiary of 
        such service corporation''; and
            (2) in subsection (e)(7)(A)(ii), by striking ``(b)(8)'' and 
        inserting ``(b)(9)''.

SEC. 106. ELIMINATION OF THRIFT MULTISTATE MULTIPLE HOLDING COMPANY 
              RESTRICTIONS.

    Section 10(e) of the Home Owners' Loan Act (12 U.S.C. 1467a(e)) is 
amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (3), (4), and (5), respectively.

SEC. 107. NONCONTROLLING INVESTMENTS BY SAVINGS ASSOCIATION HOLDING 
              COMPANIES.

    Section 10(e)(1)(A)(iii) of the Home Owners' Loan Act (12 U.S.C. 
1467a(e)(1)(A)(iii) is amended--
            (1) by inserting ``, except with the prior written approval 
        of the Director'' after ``or to retain'';
            (2) by striking ``so acquire or retain'' and inserting 
        ``acquire or retain, and the Director may not authorize 
        acquisition or retention of,''; and
            (3) by striking ``(c)(2). This clause'' and inserting 
        ``(c)(2), except that this clause''.

SEC. 108. REPEAL OF DEPOSIT BROKER NOTIFICATION AND RECORDKEEPING 
              REQUIREMENT.

    Section 29A of the Federal Deposit Insurance Act (12 U.S.C. 1831f-
1) is repealed.

SEC. 109. UNIFORM REGULATION OF EXTENSIONS OF CREDIT TO EXECUTIVE 
              OFFICERS.

    Section 22(g)(4) of the Federal Reserve Act (12 U.S.C. 375a(4)) is 
amended by striking ``member bank's appropriate Federal banking 
agency'' and inserting ``Board''.

SEC. 110. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.

    The National Bank Consolidation and Merger Act (12 U.S.C. 215 et 
seq.) is amended--
            (1) by redesignating section 5 as section 7; and
            (2) by inserting after section 4 the following new section:

``SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.

    ``(a) In General.--A national banking association may, with the 
approval of the Comptroller, pursuant to rules and regulations 
promulgated by the Comptroller, and upon the affirmative vote of the 
shareholders of such association owning at least two-thirds of its 
capital stock outstanding, reorganize so as to become a subsidiary of a 
bank holding company or a company that will, upon consummation of such 
reorganization, become a bank holding company.
    ``(b) Reorganization Plan.--A reorganization authorized under 
subsection (a) shall be carried out in accordance with a reorganization 
plan that--
            ``(1) specifies the manner in which the reorganization 
        shall be carried out;
            ``(2) is approved by a majority of the entire board of 
        directors of the association;
            ``(3) specifies--
                    ``(A) the amount of cash or securities of the bank 
                holding company, or both, or other consideration, to be 
                paid to the shareholders of the reorganizing 
                association in exchange for their shares of stock of 
                the association;
                    ``(B) the date as of which the rights of each 
                shareholder to participate in such exchange will be 
                determined; and
                    ``(C) the manner in which the exchange will be 
                carried out; and
            ``(4) is submitted to the shareholders of the reorganizing 
        association at a meeting to be held on the call of the 
        directors in accordance with the procedures prescribed in 
        connection with a merger of a national bank under section 3.
    ``(c) Rights of Dissenting Shareholders.--If, pursuant to this 
section, a reorganization plan has been approved by the shareholders 
and the Comptroller, any shareholder of the association who has voted 
against the reorganization at the meeting referred to in subsection 
(b)(4), or has given notice in writing at or prior to that meeting to 
the presiding officer that the shareholder dissents from the 
reorganization plan, shall be entitled to receive the value of his or 
her shares, as provided by section 3 for the merger of a national bank.
    ``(d) Effect of Reorganization.--The corporate existence of an 
association that reorganizes in accordance with this section shall not 
be deemed to have been affected in any way by reason of such 
reorganization.
    ``(e) Approval Under the Bank Holding Company Act.--This section 
does not affect in any way the applicability of the Bank Holding 
Company Act of 1956 to a transaction described in subsection (a).''.

SEC. 111. NATIONAL BANK DIRECTORS.

    (a) Amendments to the Revised Statutes.--Section 5145 of the 
Revised Statutes of the United States (12 U.S.C. 71) is amended--
            (1) by striking ``for one year'' and inserting ``for a 
        period of not more than 3 years,''; and
            (2) by adding at the end the following: ``In accordance 
        with regulations issued by the Comptroller of the Currency, an 
        association may adopt bylaws that provide for staggering the 
        terms of its directors.''.
    (b) Amendment to the Banking Act of 1933.--Section 31 of the 
Banking Act of 1933 (12 U.S.C. 71a) is amended in the first sentence, 
by inserting before the period ``, except that the Comptroller of the 
Currency may, by regulation or order, exempt a national banking 
association from the 25-member limit established by this section''.

SEC. 112. AMENDMENT TO BANK CONSOLIDATION AND MERGER ACT.

    The National Bank Consolidation and Merger Act (12 U.S.C. 215 et 
seq.) is amended by inserting after section 5, as added by section 110 
of this Act, the following new section:

``SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDIARIES AND NONBANK 
              AFFILIATES.

    ``(a) In General.--Upon the approval of the Comptroller, a national 
banking association may merge with 1 or more of its nonbank 
subsidiaries or affiliates.
    ``(b) Scope.--Nothing in this section shall be construed--
            ``(1) to affect the applicability of section 18(c) of the 
        Federal Deposit Insurance Act; or
            ``(2) to grant a national banking association any power or 
        authority that is not permissible for a national banking 
        association under other applicable provisions of law.
    ``(c) Regulations.--The Comptroller shall promulgate regulations to 
implement this section.''.

SEC. 113. LOANS ON OR PURCHASES BY INSTITUTIONS OF THEIR OWN STOCK; 
              AFFILIATIONS.

    (a) Amendment to Revised Statutes.--Section 5201 of the Revised 
Statutes of the United States (12 U.S.C. 83) is amended to read as 
follows:

``SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.

    ``(a) General Prohibition.--No national banking association shall 
make any loan or discount on the security of the shares of its own 
capital stock.
    ``(b) Exclusion.--For purposes of this section, an association 
shall not be deemed to be making a loan or discount on the security of 
the shares of its own capital stock if it acquires the stock to prevent 
loss upon a debt previously contracted for in good faith.''.
    (b) Amendment to Federal Deposit Insurance Act.--Section 18 of the 
Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at 
the end the following new subsection:
    ``(t) Loans by Insured Institutions on Their Own Stock.--
            ``(1) General prohibition.--No insured depository 
        institution shall make any loan or discount on the security of 
        the shares of its own capital stock.
            ``(2) Exclusion.--For purposes of this subsection, an 
        insured depository institution shall not be deemed to be making 
        a loan or discount on the security of the shares of its own 
        capital stock if it acquires the stock to prevent loss upon a 
        debt previously contracted for in good faith.''.
    (c) Removal of Prohibition on Certain Affiliations.--Section 18(s) 
of the Federal Deposit Insurance Act (12 U.S.C. 1828(s)) is amended by 
adding at the end the following new paragraph:
            ``(5) Certain investments.--Paragraph (1) does not apply 
        with respect to investments lawfully made prior to April 11, 
        1996, by a depository institution in any Government-sponsored 
        enterprise (as defined in section 1404(e)(1) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
        U.S.C. 1811 note)).''.

SEC. 114. DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS.

    Section 205(8) of the Depository Institution Management Interlocks 
Act (12 U.S.C. 3204(8)) is amended by striking ``director'' each place 
it appears and inserting ``management official''.

SEC. 115. PURCHASED MORTGAGE SERVICING RIGHTS.

    Section 475 of the Federal Depository Insurance Corporation 
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
            (1) in subsection (a)(1), by inserting ``(or such other 
        percentage exceeding 90 percent but not exceeding 100 percent, 
        as may be determined under subsection (b))'' after ``90 
        percent''; and
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively, and by inserting after subsection 
        (a) the following new subsection:
    ``(b) Authority To Determine Percentage by Which To Discount Value 
of Servicing Rights.--The appropriate Federal banking agencies may 
allow readily marketable purchased mortgage servicing rights to be 
valued at more than 90 percent of their fair market value but at not 
more than 100 percent of such value, if such agencies jointly make a 
finding that such valuation would not have an adverse affect on the 
deposit insurance funds or the safety and soundness of insured 
depository institutions.''.

SEC. 116. CROSS MARKETING RESTRICTION; LIMITED PURPOSE BANK RELIEF.

    (a) Cross Marketing Restriction.--Section 4(f) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)) is amended by striking 
paragraph (3).
    (b) Daylight Overdrafts.--Section 4(f) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(f)) is amended by inserting after paragraph 
(2) the following:
            ``(3) Permissible overdrafts described.--For purposes of 
        paragraph (2)(C), an overdraft is described in this paragraph 
        if--
                    ``(A) such overdraft results from an inadvertent 
                computer or accounting error that is beyond the control 
                of both the bank and the affiliate;
                    ``(B) such overdraft--
                            ``(i) is permitted or incurred on behalf of 
                        an affiliate that is monitored by, reports to, 
                        and is recognized as a primary dealer by the 
                        Federal Reserve Bank of New York; and
                            ``(ii) is fully secured, as required by the 
                        Board, by bonds, notes, or other obligations 
                        that are direct obligations of the United 
                        States or on which the principal and interest 
                        are fully guaranteed by the United States or by 
                        securities and obligations eligible for 
                        settlement on the Federal Reserve book entry 
                        system; or
                    ``(C) such overdraft--
                            ``(i) is permitted or incurred by, or on 
                        behalf of, an affiliate that is engaged in 
                        activities that are so closely related to 
                        banking, or managing or controlling banks, as 
                        to be a proper incident thereto; and
                            ``(ii) does not cause the bank to violate 
                        any provision of section 23A or 23B of the 
                        Federal Reserve Act, either directly, in the 
                        case of a bank that is a member of the Federal 
                        Reserve System, or by virtue of section 18(j) 
                        of the Federal Deposit Insurance Act, in the 
                        case of a bank that is not a member of the 
                        Federal Reserve System.''.
    (c) Activities Limitations.--Section 4(f)(2) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(f)(2)) is amended--
            (1) by striking ``Paragraph (1) shall cease to apply to any 
        company described in such paragraph if--'' and inserting 
        ``Subject to paragraph (3), a company described in paragraph 
        (1) shall no longer qualify for the exemption provided under 
        that paragraph if--'';
            (2) in subparagraph (A), by striking ``or'' at the end; and
            (3) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) any bank subsidiary of such company--
                            ``(i) accepts demand deposits or deposits 
                        that the depositor may withdraw by check or 
                        similar means for payment to third parties; and
                            ``(ii) engages in the business of making 
                        commercial loans (except that, for purposes of 
                        this clause, loans made in the ordinary course 
                        of a credit card operation shall not be treated 
                        as commercial loans); or
                    ``(C) after the date of enactment of the 
                Competitive Equality Amendments of 1987, any bank 
                subsidiary of such company permits any overdraft 
                (including any intraday overdraft), or incurs any such 
                overdraft in the account of the bank at a Federal 
                reserve bank, on behalf of an affiliate, other than an 
                overdraft described in paragraph (3).''.

SEC. 117. DIVESTITURE REQUIREMENT.

    Section 4(f)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(f)(4)) is amended to read as follows:
            ``(4) Divestiture in case of loss of exemption.--If any 
        company described in paragraph (1) fails to qualify for the 
        exemption provided under such paragraph by operation of 
        paragraph (2), such exemption shall cease to apply to such 
        company and such company shall divest control of each bank it 
        controls before the end of the 180-day period beginning on the 
        date that the company receives notice from the Board that the 
        company has failed to continue to qualify for such exemption, 
        unless before the end of such 180-day period, the company has--
                    ``(A) either--
                            ``(i) corrected the condition or ceased the 
                        activity that caused the company to fail to 
                        continue to qualify for the exemption; or
                            ``(ii) submitted a plan to the Board for 
                        approval to cease the activity or correct the 
                        condition in a timely manner (which shall not 
                        exceed 1 year); and
                    ``(B) implemented procedures that are reasonably 
                adapted to avoid the reoccurrence of such condition or 
                activity.''.

           TITLE II--STREAMLINING ACTIVITIES OF INSTITUTIONS

SEC. 201. UPDATING OF AUTHORITY FOR COMMUNITY DEVELOPMENT INVESTMENTS.

    Section 5(c)(3)(A) of the Home Owners' Loan Act (12 U.S.C. 
1464(c)(3)(A)) is amended by striking ``located'' and all that follows 
through ``1974'' and inserting ``for the primary purpose of promoting 
the public welfare, including the welfare of low- and moderate-income 
communities or families (including the provision of housing, services, 
or jobs)''.

SEC. 202. FEDERAL RESERVE ACT LENDING LIMITS.

    Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended--
            (1) by striking subsection (m); and
            (2) by redesignating subsection (o) as subsection (m).

SEC. 203. BUSINESS PURPOSE CREDIT EXTENSIONS.

    Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) 
is amended by adding at the end the following new subsection:
    ``(k) Business Purpose Credit Extensions.--
            ``(1) In general.--An institution referred to in section 
        2(c)(2)(F) or 4(f)(3) may engage in the provision of credit 
        card accounts for business purposes, including the issuance of 
        such accounts to small businesses.
            ``(2) Definition.--For purposes of this subsection, the 
        term `credit card' has the same meaning as in section 103 of 
        the Truth In Lending Act (15 U.S.C. 1602).''.

SEC. 204. AFFINITY GROUPS.

    (a) Section 3 of RESPA.--Section 3 of the Real Estate Settlement 
Procedures Act of 1974 (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:
            ``(9) the term `affinity group' means any person, other 
        than an individual, that--
                    ``(A) is established for a common objective or 
                purpose;
                    ``(B) is not established directly or indirectly by 
                1 or more settlement service providers for the 
                principal purpose of endorsing the products or services 
                of a settlement service provider;
                    ``(C) the common objective or purpose of which is 
                not principally the conduct of settlement services; and
                    ``(D) does not consist of or is not established by 
                any member organization (or any affiliate, parent, or 
                subsidiary thereof), the principal business of which is 
                providing settlement services.''.
    (b) Section 8 of RESPA.--Section 8(c) of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2607(c)) is amended--
            (1) by striking ``prohibiting (1) the'' and inserting 
        ``prohibiting--
            ``(1) the'';
            (2) by striking ``loan, (2) the'' and inserting ``loan;
            ``(2) the'';
            (3) by striking ``performed, (3) payments'' and inserting 
        ``performed;
            ``(3) payments'';
            (4) by striking ``brokers, (4) affiliated'' and inserting 
        ``brokers;
            ``(4) affiliated''; and
            (5) by striking ``relationship, or (5) such'' and inserting 
        ``relationship;
            ``(5) the payment or other transfer of any thing of value 
        to an affinity group for or in connection with a written 
        endorsement, either through an advertisement or through a 
        communication addressed to a consumer by name or by mailing 
        address, of the products or services of a settlement service 
        provider other than as to a federally related mortgage loan, 
        the proceeds of which are used to acquire the property securing 
        the loan, if--
                    ``(A) the consumer will receive a direct financial 
                benefit from the endorsement; and
                    ``(B) the disclosure is clearly made at the time of 
                the first written communication with the consumer of 
                the fact that a payment has been made or may be made or 
                any other thing of value may accrue to the affinity 
                group for the endorsement; or
            ``(6) such''.

SEC. 205. FAIR DEBT COLLECTION PRACTICES.

    (a) Unfair Practices.--Section 808(1) of the Fair Debt Collection 
Practices Act (15 U.S.C. 1692f(1)) is amended by striking ``unless'' 
and all that follows through the period and inserting the following: 
``unless such amount--
                    ``(A) is expressly authorized by the agreement 
                creating the debt;
                    ``(B) is permitted by law; or
                    ``(C) is reasonable, does not exceed $25, results 
                from the collection of a check returned for 
                insufficient funds, and notice of the charge was 
                conspicuously posted at the place where the check was 
                written, in a State in which the law does not address 
                the collection of such amounts.''.
    (b) Collection Activity Following Initial Notice.--Section 809 of 
the Fair Debt Collection Practices Act (15 U.S.C. 1692(g)) is amended 
by adding at the end the following new subsection:
    ``(d) Continuation During Period.--Except as provided in subsection 
(b), collection activities and legal proceedings may continue during 
the 30-day period described in subsection (a) to the extent that the 
activities and communications do not overshadow or contradict the 
information provided in accordance with subsection (a).''.
    (c) Certain Student Loans.--Section 805(b) of the Fair Debt 
Collection Practices Act (15 U.S.C. 1692c(b)) is amended by inserting 
``or a prejudgment administrative wage garnishment permitted under 
section 488A of the Higher Education Act of 1965 (20 U.S.C. 1095a),'' 
after ``remedy,''.

SEC. 206. RESTRICTION ON ACQUISITIONS OF OTHER INSURED DEPOSITORY 
              INSTITUTIONS.

    Section 4(f)(12) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(f)(12)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) in an acquisition in which the insured 
                institution has been found to be undercapitalized by 
                the appropriate Federal or State authority.''.

SEC. 207. MUTUAL HOLDING COMPANIES.

    Section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Reorganization.--A savings association operating in 
        mutual form may reorganize so as to become a holding company--
                    ``(A) by chartering a savings association, the 
                stock of which is to be wholly owned, except as 
                otherwise provided in this section, directly or 
                indirectly by the mutual association and by 
                transferring the substantial part of its assets and 
                liabilities, by merger or otherwise, including all of 
                its insured liabilities, to the interim savings 
                association;
                    ``(B) by converting to a stock association charter 
                and simultaneously forming a subsidiary stock holding 
                company that owns 100 percent of the voting stock of 
                the converting association; or
                    ``(C) in any other manner approved by the Director, 
                including by the formation of a subsidiary stock 
                holding company, transferring assets and liabilities by 
                merger or otherwise to the subsidiary stock holding 
                company, or through the use of one or more interim 
                institutions.'';
            (2) in paragraph (3)(D)--
                    (A) by striking ``savings association'' and 
                inserting ``the mutual holding company or subsidiary 
                stock holding company'';
                    (B) by striking ``such capital'' and inserting 
                ``the capital of the association'';
                    (C) by striking ``association's''; and
                    (D) by inserting ``of the association'' before 
                ``established'';
            (3) in paragraph (5)--
                    (A) by inserting ``or subsidiary stock holding 
                company'' before ``may engage'';
                    (B) in subparagraph (A)--
                            (i) by inserting ``or acquiring'' after 
                        ``Investing in''; and
                            (ii) by inserting ``, savings bank, or 
                        bank'' before the period; and
                    (C) in subparagraph (C), by inserting ``or bank'' 
                before the period;
            (4) by striking paragraph (7) and inserting the following:
            ``(7) Chartering and regulation.--
                    ``(A) In general.--A mutual holding company shall 
                be chartered by the Director, and a subsidiary stock 
                holding company may be chartered under State law, and 
                such holding companies shall be subject to such 
                regulations as the Director may prescribe. Unless the 
                context otherwise requires, a mutual holding company 
                shall be subject to the other requirements of this 
                section regarding regulation of holding companies.
                    ``(B) Conversion to state charter.--A mutual 
                holding company organized pursuant to paragraph (1) may 
                convert its charter to a State mutual holding company 
                charter.
                    ``(C) Conversion to federal charter.--
                Notwithstanding any other provision of Federal law, a 
                mutual holding company organized under State law may 
                convert its State mutual holding company charter to a 
                Federal mutual holding company charter.'';
            (5) in paragraph (8)--
                    (A) in subparagraph (A), by inserting ``or 
                subsidiary stock holding company'' after ``company''; 
                and
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) Issuance of shares.--This section does not 
                prohibit a savings association or subsidiary stock 
                holding company chartered as part of a transaction 
                described in paragraph (1) from--
                            ``(i) issuing any nonvoting shares or less 
                        than 50 percent of the voting share of such 
                        association or subsidiary stock holding company 
                        to any person other than the mutual holding 
                        company;
                            ``(ii) issuing all of the voting shares of 
                        such association to a subsidiary stock holding 
                        company, if more than 50 percent of the voting 
                        shares of the subsidiary stock holding company 
                        are owned by the mutual holding company; and
                            ``(iii) issuing to any person other than 
                        the mutual holding company, in connection with 
                        the formation of the mutual holding company or 
                        at a later date, a separate class of voting 
                        shares, the rights and preferences of which are 
                        identical to those of the class of voting 
                        shares issued to the mutual holding company, 
                        except with respect to the payment of 
                        dividends.
                    ``(C) Mutual savings association.--In the case of a 
                mutual savings association in which holders of accounts 
                or obligors exercise voting rights, such holders of 
                accounts or obligors shall have the right to subscribe 
                on a priority basis for voting shares of the subsidiary 
                stock holding company or savings association chartered 
                pursuant to paragraph (1), pursuant to regulations of 
                the Director, but only with respect to the voting 
                shares issued in connection with the initial 
                reorganization pursuant to paragraph (1). The priority 
                subscription rights applicable to voting shares issued 
                to the mutual holding company in connection with the 
                initial reorganization pursuant to paragraph (1) shall 
                be exercisable at such time as the shares are 
                subsequently sold by the subsidiary savings association 
                or subsidiary stock holding company.'';
            (6) in paragraph (9)(A)(i)(I), by inserting ``, directly or 
        indirectly,'' after ``owned''; and
            (7) in paragraph (10)--
                    (A) by striking ``subsection--'' and inserting 
                ``subsection, the following definitions shall apply:''; 
                and
                    (B) by adding at the end the following:
                    ``(D) Subsidiary stock holding company.--The term 
                `subsidiary stock holding company' means a stock 
                holding company organized under applicable State law, 
that is wholly-owned, except as otherwise provided in this section, by 
the mutual holding company.''.

SEC. 208. CALL REPORT SIMPLIFICATION.

    (a) Modernization of Call Report Filing and Disclosure System.--In 
order to reduce the administrative requirements pertaining to bank 
reports of condition, savings association financial reports, and bank 
holding company consolidated and parent-only financial statements, and 
to improve the timeliness of such reports and statements, the Federal 
banking agencies shall--
            (1) work jointly to develop a system under which--
                    (A) insured depository institutions and their 
                affiliates may file such reports and statements 
                electronically; and
                    (B) the Federal banking agencies may make such 
                reports and statements available to the public 
                electronically; and
            (2) not later than 1 year after the date of enactment of 
        this Act, report to the Congress and make recommendations for 
        legislation that would enhance efficiency for filers and users 
        of such reports and statements.
    (b) Uniform Reports and Simplification of Instructions.--The 
Federal banking agencies shall, consistent with the principles of 
safety and soundness, work jointly--
            (1) to adopt a single form for the filing of core 
        information required to be submitted under Federal law to all 
        such agencies in the reports and statements referred to in 
        subsection (a); and
            (2) to simplify instructions accompanying such reports and 
        statements and to provide an index to the instructions that is 
        adequate to meet the needs of both filers and users.
    (c) Review of Call Report Schedule.--Each Federal banking agency 
shall--
            (1) review the information required by schedules 
        supplementing the core information referred to in subsection 
        (b); and
            (2) eliminate requirements that are not warranted for 
        reasons of safety and soundness or other public purposes.

                 TITLE III--STREAMLINING AGENCY ACTIONS

SEC. 301. ELIMINATION OF DUPLICATIVE DISCLOSURE OF FAIR MARKET VALUE OF 
              ASSETS AND LIABILITIES.

    Section 37(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(a)(3)) is amended by striking subparagraph (D).

SEC. 302. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH SURPLUS FUNDS.

    Section 11(d)(10) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(d)(10)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Rulemaking authority of corporation.--The 
                Corporation may prescribe such rules, including 
                definitions of terms, as it deems appropriate to 
                establish the interest rate for or to make payments of 
                post insolvency interest to creditors holding proven 
                claims against the receivership estates of insured 
                Federal or State depository institutions following 
                satisfaction by the receiver of the principal amount of 
                all creditor claims.''.

SEC. 303. REPEAL OF REPORTING REQUIREMENT ON DIFFERENCES IN ACCOUNTING 
              STANDARDS.

    Section 37(c) of the Federal Deposit Insurance Act (12 U.S.C. 
1831n(c)) is amended--
            (1) in paragraph (1), by striking ``Each'' and all that 
        follows through ``a report'' and inserting ``The Federal 
        banking agencies shall jointly submit an annual report''; and
            (2) by inserting ``any'' before ``such agency'' each place 
        that term appears.

SEC. 304. AGENCY REVIEW OF COMPETITIVE FACTORS IN BANK MERGER ACT 
              FILINGS.

    (a) Report Required.--Section 18(c)(4) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(4)) is amended by striking ``request 
reports'' and all that follows through the end of the paragraph and 
inserting the following: ``request a report on the competitive factors 
involved from the Attorney General. The report shall be furnished not 
later than 30 calendar days after the date on which it is requested, or 
not later than 10 calendar days after such date if the requesting 
agency advises the Attorney General that an emergency exists requiring 
expeditious action.''.
    (b) Timing of Transaction.--Section 18(c)(6) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(6)) is amended by striking the third 
sentence and inserting the following: ``If the agency has advised the 
Attorney General of the existence of an emergency requiring expeditious 
action and has requested a report on the competitive factors within 10 
days, the transaction may not be consummated before the fifth calendar 
day after the date of approval by the agency.''.
    (c) Evaluation of Competitive Effect.--
            (1) Amendments to the bank holding company act of 1956.--
        Section 3(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1842(c)) is amended--
                    (A) by adding at the end the following new 
                paragraph:
            ``(6) Evaluation of competitive effect.--The Board may not 
        disapprove of a transaction pursuant to paragraph (1)(B) unless 
        the Board takes into account, to the extent that data are 
        readily available--
                    ``(A) competition from institutions, other than 
                depository institutions (as defined in section 3 of the 
                Federal Deposit Insurance Act), that provide financial 
                services;
                    ``(B) efficiencies and cost savings that the 
                transaction may create;
                    ``(C) deposits of the participants in the 
                transaction that are not derived from the relevant 
                market;
                    ``(D) the capacity of savings associations to make 
                small business loans;
                    ``(E) lending by institutions other than depository 
                institutions to small businesses; and
                    ``(F) such other factors as the Board deems 
                relevant.''; and
                    (B) in paragraph (1), by striking ``restraint or 
                trade'' and inserting ``restraint of trade''.
            (2) Amendments to the federal deposit insurance act.--
        Section 18(c)(5) of the Federal Deposit Insurance Act (12 
        U.S.C. 1828(c)(5)) is amended--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (B) by inserting ``(A)'' after ``(5)'';
                    (C) by striking ``In every case'' and inserting the 
                following:
            ``(B) In every case under this subsection''; and
                    (D) by adding at the end the following:
            ``(C) The responsible agency may not disapprove of a 
        transaction pursuant to subparagraph (A), unless the agency 
        takes into account--
                    ``(i) competition from institutions that provide 
                financial services;
                    ``(ii) efficiencies and cost savings that the 
                transaction may create;
                    ``(iii) deposits of the participants in the 
                transaction that are not derived from the relevant 
                markets;
                    ``(iv) the capacity of the institutions to make 
                small business loans;
                    ``(v) lending by institutions other than depository 
                institutions to small businesses; and
                    ``(vi) such other factors as the responsible agency 
                deems relevant.''.

SEC. 305. ELIMINATION OF SAIF AND DIF SPECIAL RESERVES.

    (a) SAIF Special Reserves.--Section 11(a)(6) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(a)(6)) is amended by striking 
subparagraph (L).
    (b) DIF Special Reserves.--Section 2704 of the Deposit Insurance 
Funds Act of 1996 (12 U.S.C. 1821 note) is amended--
            (1) by striking subsection (b); and
            (2) in subsection (d)--
                    (A) by striking paragraph (4);
                    (B) in paragraph (6)(C)(i), by striking ``(6) and 
                (7)'' and inserting ``(5), (6), and (7)''; and
                    (C) in paragraph (6)(C), by striking clause (ii) 
                and inserting the following:
                            ``(ii) by redesignating paragraph (8) as 
                        paragraph (5).''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. ALTERNATIVE COMPLIANCE METHODS FOR ADVERTISING CREDIT TERMS.

    Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 et seq.) is 
amended by adding at the end the following new section:

``SEC. 148. ALTERNATIVE DISCLOSURES.

    ``(a) In General.--A radio or television advertisement to aid, 
promote, or assist, directly or indirectly, any extension of consumer 
credit may satisfy the disclosure requirements in sections 143, 144(d), 
147(a), or 147(e), by complying with all of the requirements in 
subsections (b) and (c) of this section.
    ``(b) Information To Be Disclosed.--A radio or television 
advertisement referred to in subsection (a) complies with this 
subsection if it clearly and conspicuously sets forth, in such form and 
manner as the Board may require--
            ``(1) the annual percentage rate of any finance charge and, 
        at the option of the creditor, the simple interest rate with 
        respect to closed-end credit, or the periodic rate with respect 
        to an open-end credit plan;
            ``(2) whether the interest rate may vary;
            ``(3) if the advertisement states an introductory rate (or 
        states with respect to a variable-rate plan an initial rate 
        that is not based on the index and margin used to make later 
        rate adjustments)--
                    ``(A) with equal prominence, the annual percentage 
                rate that will be in effect after the introductory or 
                initial rate period expires (or for a variable-rate 
                plan, a reasonably current annual percentage rate that 
                would have been in effect using the index and margin); 
                and
                    ``(B) the period during which the introductory or 
                initial rate will remain in effect;
            ``(4) the amount of any annual fee for an open-end credit 
        plan;
            ``(5) a telephone number established in accordance with 
        subsection (c) that may be used by consumers to obtain all of 
        the information otherwise required to be disclosed pursuant to 
        sections 143 and 144(d), and subsections (a) and (e) of section 
        147; and
            ``(6) a statement that the consumer may use the telephone 
        number established in accordance with subsection (c) to obtain 
        further details about additional terms and costs associated 
        with the offer of credit.
    ``(c) Requirements for Telephone Numbers.--In the case of an 
advertisement described in subsection (b) that refers to a telephone 
number--
            ``(1) the creditor shall establish the telephone number for 
        a broadcast area not later than the date on which the 
        advertisement is first broadcast in that area;
            ``(2) the required information shall be available by 
        telephone for a broadcast area for a period of not less than 10 
        days following the date of the final broadcast of the 
        advertisement in that area;
            ``(3) the creditor shall provide all of the information 
        that is otherwise required pursuant to sections 143 and 144(d), 
        and subsections (a) and (e) of section 147 orally by telephone 
        or, if requested by the consumer, in written form; and
            ``(4) the consumer shall obtain the required information by 
        telephone without incurring any long-distance charges.''.

SEC. 402. POSITIONS OF BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM ON 
              THE EXECUTIVE SCHEDULE.

    (a) In General.--
            (1) Positions at level i of the executive schedule.--
        Section 5312 of title 5, United States Code, is amended by 
        adding at the end the following:
            ``Chairman, Board of Governors of the Federal Reserve 
        System.''.
            (2) Positions at level ii of the executive schedule.--
        Section 5313 of title 5, United States Code, is amended--
                    (A) by striking ``Chairman, Board of Governors of 
                the Federal Reserve System.''; and
                    (B) by adding at the end the following:
            ``Members, Board of Governors of the Federal Reserve 
        System.''.
            (3) Positions at level iii of the executive schedule.--
        Section 5314 of title 5, United States Code, is amended by 
        striking ``Members, Board of Governors of the Federal Reserve 
        System.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on the first day of the first pay period for 
the Chairman and Members of the Board of Governors of the Federal 
Reserve System beginning on or after the date of enactment of this 
section.

SEC. 403. CONSISTENT COVERAGE FOR INDIVIDUALS ENROLLED IN A HEALTH PLAN 
              ADMINISTERED BY THE FEDERAL BANKING AGENCIES.

    (a) Enrollment in Chapter 89 Plan.--For purposes of chapter 89 of 
title 5, United States Code, any period of enrollment shall be deemed 
to be a period of enrollment in a health benefits plan under chapter 89 
of such title, if such enrollment is--
            (1) in a health benefits plan administered by the Federal 
        Deposit Insurance Corporation before the termination of such 
        plan on or before January 2, 1999; or
            (2) subject to subsection (c), in a health benefits plan 
        (not under chapter 89 of such title) with respect to which the 
        eligibility of any employees or retired employees of the Board 
        of Governors of the Federal Reserve System terminates on or 
        before January 2, 1999.
    (b) Enrollment; Continued Coverage.--
            (1) Enrollment.--Subject to subsection (c), any individual 
        who, on or before January 2, 1999, is enrolled in a health 
        benefits plan described in paragraph (1) or (2) of subsection 
        (a) may enroll in an approved health benefits plan under 
        chapter 89 of title 5, United States Code, either as an 
        individual or for self and family, if, after taking into 
        account the provisions of subsection (a), such individual--
                    (A) meets the requirements of that chapter 89 for 
                eligibility to become so enrolled as an employee, 
                annuitant, or former spouse (within the meaning of that 
                chapter); or
                    (B) would meet the requirements of that chapter 89 
                if, to the extent that such requirements involve either 
                retirement system under such title 5, such individual 
                satisfies similar requirements or provisions of the 
                Retirement Plan for Employees of the Federal Reserve 
                System.
            (2) Determinations.--Any determination under paragraph 
        (1)(B) shall be made under guidelines established by the Office 
        of Personnel Management in consultation with the Board of 
        Governors of the Federal Reserve System.
            (3) Continued coverage.--Subject to subsection (c), any 
        individual who, on or before January 2, 1999, is entitled to 
        continued coverage under a health benefits plan described in 
        paragraph (1) or (2) of subsection (a) shall be deemed to be 
        entitled to continued coverage under section 8905a of title 5, 
        United States Code, but only for the same remaining period as 
        would have been allowable under the health benefits plan in 
        which such individual was enrolled on or before January 2, 
        1999, if--
                    (A) the individual had remained enrolled in that 
                plan; and
                    (B) that plan did not terminate, or the eligibility 
                of such individual with respect to that plan did not 
                terminate, as described in subsection (a).
            (4) Comparable treatment.--Subject to subsection (c), any 
        individual (other than an individual under paragraph (3)) who, 
        on or before January 2, 1999, is covered under a health 
        benefits plan described in paragraph (1) or (2) of subsection 
        (a) as an unmarried dependent child, but who does not then 
        qualify for coverage under chapter 89 of title 5, United States 
        Code, as a family member (within the meaning of that chapter) 
        shall be deemed to be entitled to continued coverage under 
        section 8905a of that title, to the same extent and in the same 
        manner as if such individual had, on or before January 2, 1999, 
        ceased to meet the requirements for being considered an 
        unmarried dependent child of an enrollee under such chapter.
            (5) Effective date.--Coverage under chapter 89 of title 5, 
        United States Code, pursuant to an enrollment under this 
        section shall become effective on January 3, 1999, or such 
        earlier date, established by the Office of Personnel 
        Management, after consultation with the Corporation and the 
        Board, as appropriate.
    (c) Eligibility for FEHBP Limited to Individuals Losing Eligibility 
Under Former Health Plan.--Nothing in subsection (a)(2) or any 
paragraph of subsection (b) (to the extent that paragraph (2) relates 
to the plan described in subsection (a)(2)) shall be considered to 
apply with respect to any individual whose eligibility for coverage 
under the plan does not involuntarily terminate on or before January 2, 
1999.
    (d) Transfers to the Employees Health Benefits Fund.--The Federal 
Deposit Insurance Corporation and the Board of Governors of the Federal 
Reserve System shall transfer to the Employees Health Benefits Fund, 
under section 8909 of title 5, United States Code, amounts determined 
by the Director of the Office of Personnel Management, after 
consultation with the Federal Deposit Insurance Corporation and the 
Board of Governors of the Federal Reserve System, to be necessary to 
reimburse the Fund for the cost of providing benefits under this 
section not otherwise paid for by the individuals covered by this 
section. The amounts so transferred shall be held in the Fund and used 
by the Office of Personnel Management in addition to amounts available 
under section 8906(g)(1) of title 5, United States Code.
    (e) Administration and Regulations.--The Office of Personnel 
Management--
            (1) shall administer the provisions of this section to 
        provide for--
                    (A) a period of notice and open enrollment for 
                individuals affected by this section; and
                    (B) no lapse of health coverage for individuals who 
                enroll in a health benefits plan under chapter 89 of 
                title 5, United States Code, in accordance with this 
                section; and
            (2) may prescribe regulations to implement this section.

SEC. 404. FEDERAL HOUSING FINANCE BOARD.

    Section 2A(b)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1422a(b)(2)) is amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively.

SEC. 405. REPORTS BY INDENTURE TRUSTEE.

    Section 313 of the Trust Indenture Act of 1939 (15 U.S.C. 77mmm) is 
amended by adding at the end the following:
    ``(e) Change of Address Information.--
            ``(1) Frequency.--Not less frequently than once every 12 
        months, the indenture trustee shall forward to each indenture 
        security holder a form requesting change of address 
        information.
            ``(2) Provision of forms.--The forms required by paragraph 
        (1) may be provided in conjunction with the reports required by 
        subsection (a) or (b), and transmitted in accordance with 
        subsection (c).''.

                     TITLE V--TECHNICAL CORRECTIONS

SEC. 501. TECHNICAL CORRECTION RELATING TO DEPOSIT INSURANCE FUNDS.

    (a) In General.--Section 2707 of the Deposit Insurance Funds Act of 
1996 (Public Law 104-208; 110 Stat. 3009-496) is amended--
            (1) by striking ``7(b)(2)(C)'' and inserting 
        ``7(b)(2)(E)''; and
            (2) by striking ``, as redesignated by section 2704(d)(6) 
        of this subtitle''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
deemed to have the same effective date as section 2707 of the Deposit 
Insurance Funds Act of 1996.

SEC. 502. RULES FOR CONTINUATION OF DEPOSIT INSURANCE FOR MEMBER BANKS 
              CONVERTING CHARTERS.

    Section 8(o) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(o)) is amended in the second sentence, by striking ``subsection 
(d) of section 4'' and inserting ``subsection (c) or (d) of section 
4''.

SEC. 503. AMENDMENTS TO THE REVISED STATUTES.

    (a) Waiver of Citizenship Requirement for National Bank 
Directors.--Section 5146 of the Revised Statutes of the United States 
(12 U.S.C. 72) is amended in the first sentence, by inserting before 
the period ``, and waive the requirement of citizenship in the case of 
not more than a minority of the total number of directors''.
    (b) Technical Amendment to the Revised Statutes.--Section 329 of 
the Revised Statutes of the United States (12 U.S.C. 11) is amended by 
striking ``to be interested in any association issuing national 
currency under the laws of the United States'' and inserting ``to hold 
an interest in any national bank''.
    (c) Repeal of Unnecessary Capital and Surplus Requirement.--Section 
5138 of the Revised Statutes of the United States (12 U.S.C. 51) is 
repealed.

SEC. 504. CONFORMING CHANGE TO THE INTERNATIONAL BANKING ACT OF 1978.

    Section 4(b) of the International Banking Act of 1978 (12 U.S.C. 
3102(b)) is amended in the second sentence, by striking paragraph (1) 
and by redesignating paragraphs (2) through (4) as paragraphs (1) 
through (3), respectively.