[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1931 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1931

To require agreements entered into between depository institutions and 
 private parties relating to the Community Reinvestment Act of 1977 to 
  be made available to the public and the appropriate Federal banking 
  agency, to require each party to the agreement to regular report to 
   such agency any amount received from other parties, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 1999

  Mr. McCollum (for himself, Mr. Royce, Mr. Bachus, and Mrs. Roukema) 
 introduced the following bill; which was referred to the Committee on 
                     Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To require agreements entered into between depository institutions and 
 private parties relating to the Community Reinvestment Act of 1977 to 
  be made available to the public and the appropriate Federal banking 
  agency, to require each party to the agreement to regular report to 
   such agency any amount received from other parties, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CRA Sunshine Act of 1999''.

SEC. 2. CRA SUNSHINE REQUIREMENTS.

    (a) Disclosure and Reporting.--The Federal Deposit Insurance Act 
(12 U.S.C. 1811 et seq.), is amended by adding at the end the following 
new section:

``SEC. 45. CRA SUNSHINE REQUIREMENTS.

    ``(a) Public Disclosure of Agreements.--Any agreement entered into 
by an insured depository institution or affiliate with a 
nongovernmental entity or person made pursuant to or in connection with 
the Community Reinvestment Act of 1977 involving funds or other 
resources of such insured depository institution or affiliate shall be, 
in its entirety, fully disclosed, and the full text thereof made 
available to the appropriate Federal banking agency with supervisory 
responsibility over the insured depository institution and to the 
public and shall obligate each party to comply with the provisions of 
this section.
    ``(b) Annual Report of Activity.--Each party to the agreement shall 
report, as applicable, to the appropriate Federal banking agency with 
supervisory responsibility over the insured depository institution, no 
less frequently than once each year, such information as the Federal 
banking agency may, by regulation, require relating to the following 
actions taken by the party pursuant to an agreement described in 
subsection (a) during the previous 12-month period:
            ``(1) Payments, fees, or loans made to any party to the 
        agreement or received from any party to the agreement and the 
        terms and conditions of the same.
            ``(2) Aggregate data on loans, investments, and services 
        provided by each party in its community or communities pursuant 
        to the agreement.
            ``(3) Such other pertinent matters as determined by 
        regulation by the appropriate Federal banking agency with 
        supervisory responsibility over the insured depository 
        institution.
The Federal banking agency shall ensure that the regulations 
implementing this section do not impose an undue burden on the parties 
and that proprietary and confidential information is protected.
    ``(c) Existing Agreements.--The requirements of subsection (b) (1), 
(2), and (3) shall be deemed to be fulfilled with respect to any 
agreement made prior to May 5, 1999.
    ``(d) Secondary Agreements.--Any agreement made on or after May 5, 
1999, pursuant to an agreement described in subsection (a) shall be 
subject to the requirements of subsections (a) and (b).
    ``(e) Agreement Defined.--For purposes of this section, the term 
`agreement'--
            ``(1) means any written contract, written arrangement, or 
        other written understanding with a value in excess of $10,000 
        annually, or a group of substantively related contracts with an 
        aggregate value of $10,000 annually, made pursuant to or in 
        connection with the Community Reinvestment Act of 1977, at 
        least 1 party to which is an insured depository institution or 
        affiliate thereof, or entity owned or controlled by an insured 
        depository institution or affiliate, whether organized on a 
        profit or nonprofit basis; and
            ``(2) does not include any specific contract or commitment 
        for a loan or extension of credit to individuals, businesses, 
        farms, or other entities, where the purpose of the loan or 
        extension of credit does not include any re-lending of the 
        borrowed funds to other parties.
    ``(d) Violations.--Any violation of the provisions of this section 
shall be considered a violation of this Act. If the party to the 
agreement that is not an insured depository institution or affiliate 
fails to comply with this section, the agreement shall not be 
enforceable after being given notice and a reasonable period of time to 
perform or comply.
    ``(e) Limitation.--No provision of this section shall be construed 
as providing any authority upon any appropriate Federal banking agency 
to enforce the provisions of the agreements that are subject to the 
requirements of subsection (a).
    ``(f) Regulations.--Each appropriate Federal banking agency shall 
prescribe regulations requiring procedures reasonably designed to 
assure and monitor compliance with the requirements of this section.''.
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