[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1375 Engrossed in House (EH)]


  2d Session

                               H. R. 1375

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                                 AN ACT

   To provide regulatory relief and improve productivity for insured 
            depository institutions, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
108th CONGRESS
  2d Session
                                H. R. 1375

_______________________________________________________________________

                                 AN ACT


 
   To provide regulatory relief and improve productivity for insured 
            depository institutions, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Financial Services 
Regulatory Relief Act of 2004''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                   TITLE I--NATIONAL BANK PROVISIONS

Sec. 101. National bank directors.
Sec. 102. Voting in shareholder elections.
Sec. 103. Simplifying dividend calculations for national banks.
Sec. 104. Repeal of obsolete limitation on removal authority of the 
                            Comptroller of the Currency.
Sec. 105. Repeal of intrastate branch capital requirements.
Sec. 106. Clarification of waiver of publication requirements for bank 
                            merger notices.
Sec. 107. Equal treatment for Federal agencies of foreign banks.
Sec. 108. Maintenance of a Federal branch and a Federal agency in the 
                            same State.
Sec. 109. Business organization flexibility for national banks.
Sec. 110. Clarification of the main place of business of a national 
                            bank.
                TITLE II--SAVINGS ASSOCIATION PROVISIONS

Sec. 201. Parity for savings associations under the Securities Exchange 
                            Act of 1934 and the Investment Advisers Act 
                            of 1940.
Sec. 202. Investments by Federal savings associations authorized to 
                            promote the public welfare.
Sec. 203. Mergers and consolidations of Federal savings associations 
                            with nondepository institution affiliates.
Sec. 204. Repeal of statutory dividend notice requirement for savings 
                            association subsidiaries of savings and 
                            loan holding companies.
Sec. 205. Modernizing statutory authority for trust ownership of 
                            savings associations.
Sec. 206. Repeal of overlapping rules governing purchased mortgage 
                            servicing rights.
Sec. 207. Restatement of authority for Federal savings associations to 
                            invest in small business investment 
                            companies.
Sec. 208. Removal of limitation on investments in auto loans.
Sec. 209. Selling and offering of deposit products.
Sec. 210. Funeral- and cemetery-related fiduciary services.
Sec. 211. Repeal of qualified thrift lender requirement with respect to 
                            out-of-state branches.
Sec. 212. Small business and other commercial loans.
Sec. 213. Clarifying citizenship of Federal savings associations for 
                            Federal court jurisdiction.
                   TITLE III--CREDIT UNION PROVISIONS

Sec. 301. Privately insured credit unions authorized to become members 
                            of a Federal home loan bank.
Sec. 302. Leases of land on Federal facilities for credit unions.
Sec. 303. Investments in securities by Federal credit unions.
Sec. 304. Increase in general 12-year limitation of term of Federal 
                            credit union loans to 15 years.
Sec. 305. Increase in 1 percent investment limit in credit union 
                            service organizations.
Sec. 306. Member business loan exclusion for loans to nonprofit 
                            religious organizations.
Sec. 307. Check cashing and money transfer services offered within the 
                            field of membership.
Sec. 308. Voluntary mergers involving multiple common-bond credit 
                            unions.
Sec. 309. Conversions involving common-bond credit unions.
Sec. 310. Credit union governance.
Sec. 311. Providing the National Credit Union Administration with 
                            greater flexibility in responding to market 
                            conditions.
Sec. 312. Exemption from pre-merger notification requirement of the 
                            Clayton Act.
Sec. 313. Treatment of credit unions as depository institutions under 
                            securities laws.
              TITLE IV--DEPOSITORY INSTITUTION PROVISIONS

Sec. 401. Easing restrictions on interstate branching and mergers.
Sec. 402. Statute of limitations for judicial review of appointment of 
                            a receiver for depository institutions.
Sec. 403. Reporting requirements relating to insider lending.
Sec. 404. Amendment to provide an inflation adjustment for the small 
                            depository institution exception under the 
                            Depository Institution Management 
                            Interlocks Act.
Sec. 405. Enhancing the safety and soundness of insured depository 
                            institutions.
Sec. 406. Investments by insured savings associations in bank service 
                            companies authorized.
Sec. 407. Cross guarantee authority.
Sec. 408. Golden parachute authority and nonbank holding companies.
Sec. 409. Amendments relating to change in bank control.
         TITLE V--DEPOSITORY INSTITUTION AFFILIATES PROVISIONS

Sec. 501. Clarification of cross marketing provision.
Sec. 502. Amendment to provide the Federal Reserve Board with 
                            discretion concerning the imputation of 
                            control of shares of a company by trustees.
Sec. 503. Eliminating geographic limits on thrift service companies.
Sec. 504. Clarification of scope of applicable rate provision.
                  TITLE VI--BANKING AGENCY PROVISIONS

Sec. 601. Waiver of examination schedule in order to allocate examiner 
                            resources.
Sec. 602. Interagency data sharing.
Sec. 603. Penalty for unauthorized participation by convicted 
                            individual.
Sec. 604. Amendment permitting the destruction of old records of a 
                            depository institution by the FDIC after 
                            the appointment of the FDIC as receiver.
Sec. 605. Modernization of recordkeeping requirement.
Sec. 606. Clarification of extent of suspension, removal, and 
                            prohibition authority of Federal banking 
                            agencies in cases of certain crimes by 
                            institution-affiliated parties.
Sec. 607. Streamlining depository institution merger application 
                            requirements.
Sec. 608. Inclusion of Director of the Office of Thrift Supervision in 
                            list of banking agencies regarding 
                            insurance customer protection regulations.
Sec. 609. Protection of confidential information received by Federal 
                            banking regulators from foreign banking 
                            supervisors.
Sec. 610. Prohibition on participation by convicted individual.
Sec. 611. Clarification that notice after separation from service may 
                            be made by an order.
Sec. 612.  Enforcement against misrepresentations regarding FDIC 
                            deposit insurance coverage.
Sec. 613. Compensation of Federal home loan bank directors.
Sec. 614. Extension of terms of Federal home loan bank directors.
Sec. 615. Biennial reports on the status of agency employment of 
                            minorities and women.
Sec. 616. Coordination of State examination authority.
                 TITLE VII-- BUSINESS CHECKING FREEDOM

Sec. 701.  Short title.
Sec. 702. Interest-bearing transaction accounts authorized for all 
                            businesses.
Sec. 703. Interest-bearing transaction accounts authorized.
Sec. 704. Payment of interest on reserves at Federal reserve banks.
Sec. 705. Increased Federal reserve board flexibility in setting 
                            reserve requirements.
Sec. 706. Transfer of Federal reserve surpluses.
Sec. 707. Rule of Construction.
             TITLE VIII--CLERICAL AND TECHNICAL AMENDMENTS

Sec. 801. Clerical amendments to the Home Owners' Loan Act.
Sec. 802. Technical corrections to the Federal Credit Union Act.
Sec. 803. Other technical corrections.
Sec. 804. Repeal of obsolete provisions of the Bank Holding Company Act 
                            of 1956.

                   TITLE I--NATIONAL BANK PROVISIONS

SEC. 101. NATIONAL BANK DIRECTORS.

    Section 5146 of the Revised Statutes of the United States (12 
U.S.C. 72) is amended--
            (1) by striking ``Sec. 5146. Every director must during'' 
        and inserting the following:

``SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS.

    ``(a) Residency Requirements.--Every director of a national bank 
shall, during'';
            (2) by striking ``total number of directors. Every director 
        must own in his or her own right'' and inserting ``total number 
        of directors.
    ``(b) Investment Requirement.--
            ``(1) In general.--Every director of a national bank shall 
        own, in his or her own right,''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Exception for subordinated debt in certain cases.--In 
        lieu of the requirements of paragraph (1) relating to the 
        ownership of capital stock in the national bank, the 
        Comptroller of the Currency may, by regulation or order, permit 
        an individual to serve as a director of a national bank that 
        has elected, or notifies the Comptroller of the bank's 
        intention to elect, to operate as a S corporation pursuant to 
        section 1362(a) of the Internal Revenue Code of 1986, if that 
        individual holds debt of at least $1,000 issued by the national 
        bank that is subordinated to the interests of depositors and 
        other general creditors of the national bank.''.

SEC. 102. VOTING IN SHAREHOLDER ELECTIONS.

    Section 5144 of the Revised Statutes of the United States (12 
U.S.C. 61) is amended--
            (1) by striking ``or to cumulate'' and inserting ``or, if 
        so provided by the articles of association of the national 
        bank, to cumulate'';
            (2) by striking the comma after ``his shares shall equal''; 
        and
            (3) by adding at the end the following new sentence: ``The 
        Comptroller of the Currency may prescribe such regulations to 
        carry out the purposes of this section as the Comptroller 
        determines to be appropriate.''.

SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL BANKS.

    (a) In General.--Section 5199 of the Revised Statutes of the United 
States (12 U.S.C. 60) is amended to read as follows:

``SEC. 5199. NATIONAL BANK DIVIDENDS.

    ``(a) In General.--Subject to subsection (b), the directors of any 
national bank may declare a dividend of so much of the undivided 
profits of the bank as the directors judge to be expedient.
    ``(b) Approval Required Under Certain Circumstances.--A national 
bank may not declare and pay dividends in any year in excess of an 
amount equal to the sum of the total of the net income of the bank for 
that year and the retained net income of the bank in the preceding two 
years, minus any transfers required by the Comptroller of the Currency 
(including any transfers required to be made to a fund for the 
retirement of any preferred stock), unless the Comptroller of the 
Currency approves the declaration and payment of dividends in excess of 
such amount.''.
    (b) Clerical Amendment.--The table of sections for chapter three of 
title LXII of the Revised Statutes of the United States is amended by 
striking the item relating to section 5199 and inserting the following 
new item:

``5199.  National bank dividends.''.

SEC. 104. REPEAL OF OBSOLETE LIMITATION ON REMOVAL AUTHORITY OF THE 
              COMPTROLLER OF THE CURRENCY.

    Section 8(e)(4) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(e)(4)) is amended by striking the 5th sentence.

SEC. 105. REPEAL OF INTRASTATE BRANCH CAPITAL REQUIREMENTS.

    Section 5155(c) of the Revised Statutes of the United States (12 
U.S.C. 36(c)) is amended--
            (1) in the 2nd sentence, by striking ``, without regard to 
        the capital requirements of this section,''; and
            (2) by striking the last sentence.

SEC. 106. CLARIFICATION OF WAIVER OF PUBLICATION REQUIREMENTS FOR BANK 
              MERGER NOTICES.

    The last sentence of sections 2(a) and 3(a)(2) of the National Bank 
Consolidation and Merger Act (12 U.S.C. 215(a) and 215a(a)(2), 
respectively) are each amended by striking ``Publication of notice may 
be waived, in cases where the Comptroller determines that an emergency 
exists justifying such waiver, by unanimous action of the shareholders 
of the association or State bank'' and inserting ``Publication of 
notice may be waived if the Comptroller determines that an emergency 
exists justifying such waiver or if the shareholders of the association 
or State bank agree by unanimous action to waive the publication 
requirement for their respective institutions''.

SEC. 107. EQUAL TREATMENT FOR FEDERAL AGENCIES OF FOREIGN BANKS.

    The 1st sentence of section 4(d) of the International Banking Act 
of 1978 (12 U.S.C. 3102(d)) is amended by inserting ``from citizens or 
residents of the United States'' after ``deposits''.

SEC. 108. MAINTENANCE OF A FEDERAL BRANCH AND A FEDERAL AGENCY IN THE 
              SAME STATE.

    Section 4(e) of the International Banking Act of 1978 (12 U.S.C. 
3102(e)) is amended by inserting ``if the maintenance of both an agency 
and a branch in the State is prohibited under the law of such State'' 
before the period at the end.

SEC. 109. BUSINESS ORGANIZATION FLEXIBILITY FOR NATIONAL BANKS.

    (a) In General.--Chapter one of title LXII of the Revised Statutes 
of the United States (12 U.S.C. 21 et seq.) is amended by inserting 
after section 5136B the following new section:

``SEC. 5136C. ALTERNATIVE BUSINESS ORGANIZATION.

    ``(a) In General.--The Comptroller of the Currency may prescribe 
regulations--
            ``(1) to permit a national bank to be organized other than 
        as a body corporate; and
            ``(2) to provide requirements for the organizational 
        characteristics of a national bank organized and operating 
        other than as a body corporate, consistent with the safety and 
        soundness of the national bank.
    ``(b) Equal Treatment.--Except as provided in regulations 
prescribed under subsection (a), a national bank that is operating 
other than as a body corporate shall have the same rights and 
privileges and shall be subject to the same duties, restrictions, 
penalties, liabilities, conditions, and limitations as a national bank 
that is organized as a body corporate.''.
    (b) Technical and Conforming Amendment.--Section 5136 of the 
Revised Statutes of the United States (12 U.S.C. 24) is amended, in the 
matter preceding the paragraph designated as the ``First'', by 
inserting ``or other form of business organization provided under 
regulations prescribed by the Comptroller of the Currency under section 
5136C'' after ``a body corporate''.
    (c) Clerical Amendment.--The table of sections for chapter one of 
title LXII of the Revised Statutes of the United States (12 U.S.C. 21 
et seq.) is amended by inserting after the item relating to section 
5136B the following new item:

``5136C. Alternative business organization.''.

SEC. 110. CLARIFICATION OF THE MAIN PLACE OF BUSINESS OF A NATIONAL 
              BANK.

    Title LXII of the Revised Statutes of the United States is 
amended--
            (1) in the paragraph designated the ``Second'' of section 
        5134 (12 U.S.C. 22), by striking ``The place where its 
        operations of discount and deposit are to be carried on'' and 
        inserting ``The place where the main office of the national 
        bank is, or is to be, located''; and
            (2) in section 5190 (12 U.S.C. 81), by striking ``the place 
        specified in its organization certificate'' and inserting ``the 
        main office of the national bank''.

                TITLE II--SAVINGS ASSOCIATION PROVISIONS

SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE SECURITIES EXCHANGE 
              ACT OF 1934 AND THE INVESTMENT ADVISERS ACT OF 1940.

    (a) Securities Exchange Act of 1934.--
            (1) Definition of bank.--Section 3(a)(6) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended--
                    (A) in subparagraph (A), by inserting ``or a 
                Federal savings association, as defined in section 2(5) 
                of the Home Owners' Loan Act'' after ``a banking 
                institution organized under the laws of the United 
                States''; and
                    (B) in subparagraph (C)--
                            (i) by inserting ``or savings association 
                        as defined in section 2(4) of the Home Owners' 
                        Loan Act,'' after ``banking institution,''; and
                            (ii) by inserting ``or savings 
                        associations'' after ``having supervision over 
                        banks''.
            (2) Include ots under the definition of appropriate 
        regulatory agency for certain purposes.--Section 3(a)(34) of 
        such Act (15 U.S.C. 78c(a)(34)) is amended--
                    (A) in subparagraph (A)--
                            (i) in clause (ii), by striking ``(i) or 
                        (iii)'' and inserting ``(i), (iii), or (iv)'';
                            (ii) by striking ``and'' at the end of 
                        clause (iii);
                            (iii) by redesignating clause (iv) as 
                        clause (v); and
                            (iv) by inserting the following new clause 
                        after clause (iii):
                            ``(iv) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))) the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation, a 
                        subsidiary or a department or division of any 
                        such savings association, or a savings and loan 
                        holding company; and'';
                    (B) in subparagraph (B)--
                            (i) in clause (ii), by striking ``(i) or 
                        (iii)'' and inserting ``(i), (iii), or (iv)'';
                            (ii) by striking ``and'' at the end of 
                        clause (iii);
                            (iii) by redesignating clause (iv) as 
                        clause (v); and
                            (iv) by inserting the following new clause 
                        after clause (iii):
                            ``(iv) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))) the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation, or a 
                        subsidiary of any such savings association, or 
                        a savings and loan holding company; and'';
                    (C) in subparagraph (C)--
                            (i) in clause (ii), by striking ``(i) or 
                        (iii)'' and inserting ``(i), (iii), or (iv)'';
                            (ii) by striking ``and'' at the end of 
                        clause (iii);
                            (iii) by redesignating clause (iv) as 
                        clause (v); and
                            (iv) by inserting the following new clause 
                        after clause (iii):
                            ``(iv) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))) the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation, a 
                        savings and loan holding company, or a 
                        subsidiary of a savings and loan holding 
                        company when the appropriate regulatory agency 
                        for such clearing agency is not the Commission; 
                        and'';
                    (D) in subparagraph (D)--
                            (i) by striking ``and'' at the end of 
                        clause (ii);
                            (ii) by redesignating clause (iii) as 
                        clause (iv); and
                            (iii) by inserting the following new clause 
                        after clause (ii):
                            ``(iii) the Director of the Office of 
                        Thrift Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))) the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation; 
                        and'';
                    (E) in subparagraph (F)--
                            (i) by redesignating clauses (ii), (iii), 
                        and (iv) as clauses (iii), (iv), and (v), 
                        respectively; and
                            (ii) by inserting the following new clause 
                        after clause (i):
                            ``(ii) the Director of the Office of Thrift 
                        Supervision, in the case of a savings 
                        association (as defined in section 3(b) of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813(b))) the deposits of which are insured by 
                        the Federal Deposit Insurance Corporation; 
                        and'';
                    (F) by moving subparagraph (H) and inserting such 
                subparagraph after subparagraph (G); and
                    (G) by adding at the end the following new 
                sentence: ``As used in this paragraph, the term 
                `savings and loan holding company' has the meaning 
                given it in section 10(a) of the Home Owners' Loan Act 
                (12 U.S.C. 1467a(a)).''.
    (b) Investment Advisers Act of 1940.--
            (1) Definition of bank.--Section 202(a)(2) of the 
        Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(2)) is 
        amended--
                    (A) in subparagraph (A) by inserting ``or a Federal 
                savings association, as defined in section 2(5) of the 
                Home Owners' Loan Act'' after ``a banking institution 
                organized under the laws of the United States''; and
                    (B) in subparagraph (C)--
                            (i) by inserting ``, savings association as 
                        defined in section 2(4) of the Home Owners' 
                        Loan Act,'' after ``banking institution''; and
                            (ii) by inserting ``or savings 
                        associations'' after ``having supervision over 
                        banks''.
            (2) Conforming amendments.--Subsections (a)(1)(A)(i), 
        (a)(1)(B), (a)(2), and (b) of section 210A of such Act (15 
        U.S.C. 80b-10a), as added by section 220 of the Gramm-Leach-
        Bliley Act, are each amended by striking ``bank holding 
        company'' each place it occurs and inserting ``bank holding 
        company or savings and loan holding company''.
    (c) Conforming Amendment to the Investment Company Act of 1940.--
Section 10(c) of the Investment Company Act of 1940 (15 U.S.C. 80a-
10(c)), as amended by section 213(c) of the Gramm-Leach-Bliley Act, is 
amended by inserting after ``1956)'' the following: ``or any one 
savings and loan holding company (together with its affiliates and 
subsidiaries) (as such terms are defined in section 10 of the Home 
Owners' Loan Act)''.

SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIATIONS AUTHORIZED TO 
              PROMOTE THE PUBLIC WELFARE.

    (a) In General.--Section 5(c)(3) of the Home Owners' Loan Act (12 
U.S.C. 1464(c)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Direct investments to promote the public 
                welfare.--
                            ``(i) In general.--A Federal savings 
                        association may make investments designed 
                        primarily to promote the public welfare, 
                        including the welfare of low- and moderate-
                        income communities or families through the 
                        provision of housing, services, and jobs.
                            ``(ii) Direct investments or acquisition of 
                        interest in other companies.--Investments under 
                        clause (i) may be made directly or by 
                        purchasing interests in an entity primarily 
                        engaged in making such investments.
                            ``(iii) Prohibition on unlimited 
                        liability.--No investment may be made under 
                        this subparagraph which would subject a Federal 
                        savings association to unlimited liability to 
                        any person.
                            ``(iv) Single investment limitation to be 
                        established by director.--Subject to clauses 
                        (v) and (vi), the Director shall establish, by 
                        order or regulation, limits on--
                                    ``(I) the amount any savings 
                                association may invest in any 1 
                                project; and
                                    ``(II) the aggregate amount of 
                                investment of any savings association 
                                under this subparagraph.
                            ``(v) Flexible aggregate investment 
                        limitation.--The aggregate amount of 
                        investments of any savings association under 
                        this subparagraph may not exceed an amount 
                        equal to the sum of 5 percent of the savings 
                        association's capital stock actually paid in 
                        and unimpaired and 5 percent of the savings 
                        association's unimpaired surplus, unless--
                                    ``(I) the Director determines that 
                                the savings association is adequately 
                                capitalized; and
                                    ``(II) the Director determines, by 
                                order, that the aggregate amount of 
                                investments in a higher amount than the 
                                limit under this clause will pose no 
                                significant risk to the affected 
                                deposit insurance fund.
                            ``(vi) Maximum aggregate investment 
                        limitation.--Notwithstanding clause (v), the 
                        aggregate amount of investments of any savings 
                        association under this subparagraph may not 
                        exceed an amount equal to the sum of 10 percent 
                        of the savings association's capital stock 
                        actually paid in and unimpaired and 10 percent 
                        of the savings association's unimpaired 
                        surplus.
                            ``(vii) Investments not subject to other 
                        limitation on quality of investments.--No 
                        obligation a Federal savings association 
                        acquires or retains under this subparagraph 
                        shall be taken into account for purposes of the 
                        limitation contained in section 28(d) of the 
                        Federal Deposit Insurance Act on the 
                        acquisition and retention of any corporate debt 
                        security not of investment grade.''.
    (b) Technical and Conforming Amendment.--Section 5(c)(3)(A) of the 
Home Owners' Loan Act (12 U.S.C. 1464(c)(3)(A)) is amended to read as 
follows:
                    ``(A) [Repealed.]''.

SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL SAVINGS ASSOCIATIONS 
              WITH NONDEPOSITORY INSTITUTION AFFILIATES.

    Section 5(d)(3) of the Home Owners' Loan Act (12 U.S.C. 1464(d)(3)) 
is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Mergers and consolidations with nondepository 
                institution affiliates.--
                            ``(i) In general.--Upon the approval of the 
                        Director, a Federal savings association may 
                        merge with any nondepository institution 
                        affiliate of the savings association.
                            ``(ii) Rule of construction.--No provision 
                        of clause (i) shall be construed as--
                                    ``(I) affecting the applicability 
                                of section 18(c) of the Federal Deposit 
                                Insurance Act; or
                                    ``(II) granting a Federal savings 
                                association any power or any authority 
                                to engage in any activity that is not 
                                authorized for a Federal savings 
                                association under any other provision 
                                of this Act or any other provision of 
                                law.''.

SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE REQUIREMENT FOR SAVINGS 
              ASSOCIATION SUBSIDIARIES OF SAVINGS AND LOAN HOLDING 
              COMPANIES.

    Section 10(f) of the Home Owners' Loan Act (12 U.S.C. 1467a(f)) is 
amended to read as follows:
    ``(f) Declaration of Dividend.--The Director may--
            ``(1) require a savings association that is a subsidiary of 
        a savings and loan holding company to give prior notice to the 
        Director of the intent of the savings association to pay a 
        dividend on its guaranty, permanent, or other nonwithdrawable 
        stock; and
            ``(2) establish conditions on the payment of dividends by 
        such a savings association.''.

SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR TRUST OWNERSHIP OF 
              SAVINGS ASSOCIATIONS.

    (a) In General.--Section 10(a)(1)(C) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(a)(1)(C)) is amended--
            (1) by striking ``trust,'' and inserting ``business 
        trust,''; and
            (2) by inserting ``or any other trust unless by its terms 
        it must terminate within 25 years or not later than 21 years 
        and 10 months after the death of individuals living on the 
        effective date of the trust,'' after ``or similar 
        organization,''.
    (b) Technical and Conforming Amendment.--Section 10(a)(3) of the 
Home Owners' Loan Act (12 U.S.C. 1467a(a)(3)) is amended--
            (1) by striking ``does not include--'' and all that follows 
        through ``any company by virtue'' where such term appears in 
        subparagraph (A) and inserting ``does not include any company 
        by virtue'';
            (2) by striking ``; and'' at the end of subparagraph (A) 
        and inserting a period; and
            (3) by striking subparagraph (B).

SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING PURCHASED MORTGAGE 
              SERVICING RIGHTS.

    Section 5(t) of the Home Owners' Loan Act (12 U.S.C. 1464(t)) is 
amended--
            (1) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) [Repealed.]''; and
            (2) in paragraph (9)(A), by striking ``intangible assets, 
        plus'' and all that follows through the period at the end and 
        inserting ``intangible assets.''.

SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL SAVINGS ASSOCIATIONS TO 
              INVEST IN SMALL BUSINESS INVESTMENT COMPANIES.

    Subparagraph (D) of section 5(c)(4) of the Home Owners' Loan Act 
(12 U.S.C. 1464(c)(4)) is amended to read as follows:
                    ``(D) Small business investment companies.--Any 
                Federal savings association may invest in 1 or more 
                small business investment companies, or in any entity 
                established to invest solely in small business 
                investment companies formed under the Small Business 
                Investment Act of 1958, except that the total amount of 
                investments under this subparagraph may not at any time 
                exceed the amount equal to 5 percent of capital and 
                surplus of the savings association.''.

SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN AUTO LOANS.

    (a) In General.--Section 5(c)(1) of the Home Owners' Loan Act (12 
U.S.C. 1464(c)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(V) Auto loans.--Loans and leases for motor 
                vehicles acquired for personal, family, or household 
                purposes.''.
    (b) Technical and Conforming Amendment relating to Qualified Thrift 
Investments.--Section 10(m)(4)(C)(ii) of the Home Owners' Loan Act (12 
U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the end the 
following new subclause:
                                    ``(VIII) Loans and leases for motor 
                                vehicles acquired for personal, family, 
                                or household purposes.''.

SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS.

            Section 15(h) of the Securities Exchange Act of 1934 (15 
        U.S.C. 78o(h)) is amended by adding at the end the following 
        new paragraph:
            ``(4) Selling and offering of deposit products.--No law, 
        rule, regulation, or order, or other administrative action of 
        any State or political subdivision thereof shall directly or 
indirectly require any individual who is an agent of 1 Federal savings 
association (as such term is defined in section 2(5) of the Home 
Owners' Loan Act (12 U.S.C. 1462(5)) in selling or offering deposit (as 
such term is defined in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(l)) products issued by such association to qualify or 
register as a broker, dealer, associated person of a broker, or 
associated person of a dealer, or to qualify or register in any other 
similar status or capacity, if the individual does not--
                    ``(A) accept deposits or make withdrawals on behalf 
                of any customer of the association;
                    ``(B) offer or sell a deposit product as an agent 
                for another entity that is not subject to supervision 
                and examination by a Federal banking agency (as defined 
                in section 3(z) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1813(z)), the National Credit Union 
                Administration, or any officer, agency, or other entity 
                of any State which has primary regulatory authority 
                over State banks, State savings associations, or State 
                credit unions;
                    ``(C) offer or sell a deposit product that is not 
                an insured deposit (as defined in section 3(m) of the 
                Federal Deposit Insurance Act (12 U.S.C. 1813(m)));
                    ``(D) offer or sell a deposit product which 
                contains a feature that makes it callable at the option 
                of such Federal savings association; or
                    ``(E) create a secondary market with respect to a 
                deposit product or otherwise add enhancements or 
                features to such product independent of those offered 
                by the association.''.

SEC. 210. FUNERAL- AND CEMETERY-RELATED FIDUCIARY SERVICES.

    Section 5(n) of the Home Owners' Loan Act (12 U.S.C. 1464(n)) is 
amended by adding at the end the following new paragraph:
            ``(11) Funeral- and cemetery-related fiduciary services.--
                    ``(A) In general.--A funeral director or cemetery 
                operator, when acting in such capacity, (or any other 
                person in connection with a contract or other agreement 
                with a funeral director or cemetery operator) may 
                engage any Federal savings association, regardless of 
                where the association is located, to act in any 
                fiduciary capacity in which the savings association has 
                the right to act in accordance with this section, 
                including holding funds deposited in trust or escrow by 
                the funeral director or cemetery operator (or by such 
                other party), and the savings association may act in 
                such fiduciary capacity on behalf of the funeral 
                director or cemetery operator (or such other person).
                    ``(B) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                            ``(i) Cemetery.--The term `cemetery' means 
                        any land or structure used, or intended to be 
                        used, for the interment of human remains in any 
                        form.
                            ``(ii) Cemetery operator.--The term 
                        `cemetery operator' means any person who 
                        contracts or accepts payment for merchandise, 
                        endowment, or perpetual care services in 
                        connection with a cemetery.
                            ``(iii) Funeral director.--The term 
                        `funeral director' means any person who 
                        contracts or accepts payment to provide or 
                        arrange--
                                    ``(I) services for the final 
                                disposition of human remains; or
                                    ``(II) funeral services, property, 
                                or merchandise (including cemetery 
                                services, property, or merchandise).''.

SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER REQUIREMENT WITH RESPECT TO 
              OUT-OF-STATE BRANCHES.

    Section 5(r)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(r)(1)) 
is amended by striking the last sentence.

SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL LOANS.

    (a) Elimination of Lending Limit on Small Business Loans.--Section 
5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(1)) is amended 
by inserting after subparagraph (V) (as added by section 208 of this 
title) the following new subparagraph:
                    ``(W) Small business loans.--Small business loans, 
                as defined in regulations which the Director shall 
                prescribe.''.
    (b) Increase in Lending Limit on Other Business Loans.--Section 
5(c)(2)(A) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is 
amended by striking ``, and amounts in excess of 10 percent'' and all 
that follows through ``by the Director''.

SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS ASSOCIATIONS FOR 
              FEDERAL COURT JURISDICTION.

    Section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) is amended 
by adding at the end the following new subsection:
    ``(x) Home State Citizenship.--In determining whether a Federal 
court has diversity jurisdiction over a case in which a Federal savings 
association is a party, the Federal savings association shall be 
considered to be a citizen only of the State in which such savings 
association has its home office.''.

                   TITLE III--CREDIT UNION PROVISIONS

SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHORIZED TO BECOME MEMBERS 
              OF A FEDERAL HOME LOAN BANK.

    (a) In General.--Section 4(a) of the Federal Home Loan Bank Act (12 
U.S.C. 1424(a)) is amended by adding at the end the following new 
paragraph:
            ``(5) Certain privately insured credit unions.--
                    ``(A) In general.--A credit union which has been 
                determined, in accordance with section 43(e)(1) of the 
                Federal Deposit Insurance Act and subject to the 
                requirements of subparagraph (B), to meet all 
                eligibility requirements for Federal deposit insurance 
                shall be treated as an insured depository institution 
                for purposes of determining the eligibility of such 
                credit union for membership in a Federal home loan bank 
                under paragraphs (1), (2), and (3).
                    ``(B) Certification by appropriate supervisor.--
                            ``(i) In general.--For purposes of this 
                        paragraph and subject to clause (ii), a credit 
                        union which lacks Federal deposit insurance and 
                        which has applied for membership in a Federal 
                        home loan bank may be treated as meeting all 
                        the eligibility requirements for Federal 
                        deposit insurance only if the appropriate 
                        supervisor of the State in which the credit 
                        union is chartered has determined that the 
                        credit union meets all the eligibility 
                        requirements for Federal deposit insurance as 
                        of the date of the application for membership.
                            ``(ii) Certification deemed valid.--If, in 
                        the case of any credit union to which clause 
                        (i) applies, the appropriate supervisor of the 
                        State in which such credit union is chartered 
                        fails to make a determination pursuant to such 
                        clause by the end of the 6-month period 
                        beginning on the date of the application, the 
                        credit union shall be deemed to have met the 
                        requirements of clause (i).
                    ``(C) Security interests of federal home loan bank 
                not avoidable.--Notwithstanding any provision of State 
                law authorizing a conservator or liquidating agent of a 
                credit union to repudiate contracts, no such provision 
                shall apply with respect to--
                            ``(i) any extension of credit from any 
                        Federal home loan bank to any credit union 
                        which is a member of any such bank pursuant to 
                        this paragraph; or
                            ``(ii) any security interest in the assets 
                        of such credit union securing any such 
                        extension of credit.''.
    (b) Copies of Audits of Private Insurers of Certain Depository 
Institutions Required To Be Provided to Supervisory Agencies.--Section 
43(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1831t(a)(2)) 
is amended--
            (1) by striking ``and'' at the end of subparagraph (A)(i);
            (2) by striking the period at the end of clause (ii) of 
        subparagraph (A) and inserting a semicolon;
            (3) by inserting the following new clauses at the end of 
        subparagraph (A):
                            ``(iii) in the case of depository 
                        institutions described in subsection (f)(2)(A) 
                        the deposits of which are insured by the 
                        private insurer, the National Credit Union 
                        Administration, not later than 7 days after 
                        that audit is completed; and
                            ``(iv) in the case of depository 
                        institutions described in subsection (f)(2)(A) 
                        the deposits of which are insured by the 
                        private insurer which are members of a Federal 
                        home loan bank, the Federal Housing Finance 
                        Board, not later than 7 days after that audit 
                        is completed.''; and
            (4) by adding at the end the following new subparagraph:
                    ``(C) Consultation.--The appropriate supervisory 
                agency of each State in which a private deposit insurer 
                insures deposits in an institution described in 
                subsection (f)(2)(A) which--
                            ``(i) lacks Federal deposit insurance; and
                            ``(ii) has become a member of a Federal 
                        home loan bank,
                shall provide the National Credit Union Administration, 
                upon request, with the results of any examination and 
                reports related thereto concerning the private deposit 
                insurer to which such agency may have in its 
                possession.''.

SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT UNIONS.

    (a) In General.--Section 124 of the Federal Credit Union Act (12 
U.S.C. 1770) is amended--
            (1) by striking ``Upon application by any credit union'' 
        and inserting ``Notwithstanding any other provision of law, 
        upon application by any credit union'';
            (2) by inserting ``on lands reserved for the use of, and 
        under the exclusive or concurrent jurisdiction of, the United 
        States or'' after ``officer or agency of the United States 
        charged with the allotment of space'';
            (3) by inserting ``lease land or'' after ``such officer or 
        agency may in his or its discretion''; and
            (4) by inserting ``or the facility built on the lease 
        land'' after ``credit union to be served by the allotment of 
        space''.
    (b) Clerical Amendment.--The heading for section 124 is amended by 
inserting ``or federal land'' after ``buildings''.

SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CREDIT UNIONS.

    Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is 
amended--
            (1) in the matter preceding paragraph (1) by striking ``A 
        Federal credit union'' and inserting ``(a) In General.--Any 
        Federal credit union''; and
            (2) by adding at the end the following new subsection:
    ``(b)  Additional Investment Authority.--
            ``(1) In general.--In adition to any investments otherwise 
        authorized, a Federal credit union may purchase and hold for 
        its own account such investment securities of investment grade 
        as the Board may authorize by regulation, subject to such 
        limitations and restrictions as the Board may prescribe in the 
        regulations.
            ``(2) Percentage limitations.--
                    ``(A) Single obligor.--In no event may the total 
                amount of investment securities of any single obligor 
                or maker held by a Federal credit union for the credit 
                union's own account exceed at any time an amount equal 
                to 10 percent of the net worth of the credit union.
                    ``(B) Aggregate investments.--In no event may the 
                aggregate amount of investment securities held by a 
                Federal credit union for the credit union's own account 
                exceed at any time an amount equal to 10 percent of the 
                assets of the credit union.
            ``(3) Investment security defined.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `investment security' means marketable 
                obligations evidencing the indebtedness of any person 
                in the form of bonds, notes, or debentures and other 
                instruments commonly referred to as investment 
                securities.
                    ``(B) Further definition by board.--The Board may 
                further define the term `investment security'.
            ``(4) Investment grade defined.--The term `investment 
        grade' means with respect to an investment security purchased 
        by a credit union for its own account, an investment security 
        that at the time of such purchase is rated in one of the 4 
        highest rating categories by at least 1 nationally recognized 
        statistical rating organization.
            ``(5) Clarification of prohibition on stock ownership.--No 
        provision of this subsection shall be construed as authorizing 
        a Federal credit union to purchase shares of stock of any 
        corporation for the credit union's own account, except as 
        otherwise permitted by law.''.

SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF FEDERAL 
              CREDIT UNION LOANS TO 15 YEARS.

    Section 107(a)(5) of the Federal Credit Union Act (12 U.S.C. 
1757(5)) (as so designated by section 303 of this title) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``to make loans, the maturities of which shall not exceed 
        twelve years except as otherwise provided herein'' and 
        inserting ``to make loans, the maturities of which shall not 
        exceed 15 years or any longer maturity as the Board may allow, 
        in regulations, except as otherwise provided in this Act'';
            (2) in subparagraph (A)--
                    (A) by striking clause (ii);
                    (B) by redesignating clauses (iii) through (x) as 
                clauses (ii) through (ix), respectively; and
                    (C) by inserting ``and'' after the semicolon at the 
                end of clause (viii) (as so redesignated).

SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN CREDIT UNION 
              SERVICE ORGANIZATIONS.

    Section 107(a)(7)(I) of the Federal Credit Union Act (12 U.S.C. 
1757(7)(I)) (as so designated by section 303 of this title) is amended 
by striking ``up to 1 per centum of the total paid'' and inserting ``up 
to 3 percent of the total paid''.

SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO NONPROFIT 
              RELIGIOUS ORGANIZATIONS.

    Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 
1757a(a)) is amended by inserting ``, excluding loans made to nonprofit 
religious organizations,'' after ``total amount of such loans''.

SEC. 307. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED WITHIN THE 
              FIELD OF MEMBERSHIP.

    Paragraph (12) of section 107(a) of the Federal Credit Union Act 
(12 U.S.C. 1757(12)) (as so designated by section 303 of this title) is 
amended to read as follows:
            ``(12) in accordance with regulations prescribed by the 
        Board--
                    ``(A) to sell, to persons in the field of 
                membership, negotiable checks (including travelers 
                checks), money orders, and other similar money transfer 
                instruments (including electronic fund transfers); and
                    ``(B) to cash checks and money orders and receive 
                electronic fund transfers for persons in the field of 
                membership for a fee;''.

SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE COMMON-BOND CREDIT 
              UNIONS.

    Section 109(d)(2) of the Federal Credit Union Act (12 U.S.C. 
1759(d)(2)) is amended--
            (1) by striking ``or'' at the end of clause (ii) of 
        subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) a merger involving any such Federal credit 
                union approved by the Board on or after August 7, 
                1998.''.

SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CREDIT UNIONS.

    Section 109(g) of the Federal Credit Union Act (12 U.S.C. 1759(g)) 
is amended by inserting after paragraph (2) the following new 
paragraph:
            ``(3) Criteria for continued membership of certain member 
        groups in community charter conversions.--In the case of a 
        voluntary conversion of a common-bond credit union described in 
        paragraph (1) or (2) of subsection (b) into a community credit 
        union described in subsection (b)(3), the Board shall 
        prescribe, by regulation, the criteria under which the Board 
        may determine that a member group or other portion of a credit 
        union's existing membership, that is located outside the well-
        defined local community, neighborhood, or rural district that 
        shall constitute the community charter, can be satisfactorily 
served by the credit union and remain within the community credit 
union's field of membership.''.

SEC. 310. CREDIT UNION GOVERNANCE.

    (a) Expulsion of Members For Just Cause.--Subsection (b) of section 
118 of the Federal Credit Union Act (12 U.S.C. 1764(b)) is amended to 
read as follows:
    ``(b) Policy and Actions of Boards of Directors of Federal Credit 
Unions.--
            ``(1) Expulsion of members for nonparticipation or for just 
        cause.--The board of directors of a Federal credit union may, 
        by majority vote of a quorum of directors, adopt and enforce a 
        policy with respect to expulsion from membership, by a majority 
        vote of such board of directors, based on just cause, including 
        disruption of credit union operations, or on nonparticipation 
        by a member in the affairs of the credit union.
            ``(2) Written notice of policy to members.--If a policy 
        described in paragraph (1) is adopted, written notice of the 
        policy as adopted and the effective date of such policy shall 
        be provided to--
                    ``(A) each existing member of the credit union not 
                less than 30 days prior to the effective date of such 
                policy; and
                    ``(B) each new member prior to or upon applying for 
                membership.''.
    (b) Term Limits Authorized for Board Members of Federal Credit 
Unions.--Section 111(a) of the Federal Credit Union Act (12 U.S.C. 
1761(a)) is amended by adding at the end the following new sentence: 
``The bylaws of a Federal credit union may limit the number of 
consecutive terms any person may serve on the board of directors of 
such credit union.''.
    (c) Reimbursement For Lost Wages Due to Service on Credit Union 
Board Not Treated as Compensation.--Section 111(c) of the Federal 
Credit Union Act (12 U.S.C. 1761(c)) is amended by inserting ``, 
including lost wages,'' after ``the reimbursement of reasonable 
expenses''.

SEC. 311. PROVIDING THE NATIONAL CREDIT UNION ADMINISTRATION WITH 
              GREATER FLEXIBILITY IN RESPONDING TO MARKET CONDITIONS.

    Section 107(a)(5)(A)(vi)(I) of the Federal Credit Union Act (12 
U.S.C. 1757(5)(A)(vi)(I)) (as so designated by section 303 of this 
title) is amended by striking ``six-month period and that prevailing 
interest rate levels'' and inserting ``6-month period or that 
prevailing interest rate levels''.

SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION REQUIREMENT OF THE 
              CLAYTON ACT.

    Section 7A(c)(7) of the Clayton Act (15 U.S.C. 18a(c)(7)) is 
amended by inserting ``section 205(b)(3) of the Federal Credit Union 
Act (12 U.S.C. 1785(b)(3)),'' before ``or section 3''.

SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY INSTITUTIONS UNDER 
              SECURITIES LAWS.

    (a) Definition of Bank Under the Securities Exchange Act of 1934.--
Section 3(a)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(6)) (as amended by section 201(a)(1) of this Act) is amended--
            (1) by striking ``this title, and (D) a receiver'' and 
        inserting ``this title, (D) an insured credit union (as defined 
        in section 101(7) of the Federal Credit Union Act) but only for 
        purposes of paragraphs (4) and (5) of this subsection and only 
        for activities otherwise authorized by applicable laws to which 
        such credit unions are subject, and (E) a receiver''; and
            (2) in subparagraph (E) (as so redesignated by paragraph 
        (1) of this subsection) by striking ``(A), (B), or (C)'' and 
        inserting ``(A), (B), (C), or (D)''.
    (b) Definition of Bank Under the Investment Advisers Act of 1940.--
Section 202(a)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 
80b-2(a)(2)) (as amended by section 201(b)(1) of this Act) is amended--
            (1) by striking ``this title, and (D) a receiver'' and 
        inserting ``this title, (D) an insured credit union (as defined 
        in section 101(7) of the Federal Credit Union Act) but only for 
        activities otherwise authorized by applicable laws to which 
        such credit unions are subject, and (E) a receiver''; and
            (2) in subparagraph (E) (as so redesignated by paragraph 
        (1) of this subsection) by striking ``(A), (B), or (C)'' and 
        inserting ``(A), (B), (C), or (D)''.
    (c) Definition of Appropriate Federal Banking Agency.--Section 
210A(c) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-10a(c)) 
is amended by inserting ``and includes the National Credit Union 
Administration Board, in the case of an insured credit union (as 
defined in section 101(7) of the Federal Credit Union Act)'' before the 
period at the end.

              TITLE IV--DEPOSITORY INSTITUTION PROVISIONS

SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCHING AND MERGERS.

    (a) De Novo Interstate Branches of National Banks.--
            (1) In general.--Section 5155(g)(1) of the Revised Statutes 
        of the United States (12 U.S.C. 36(g)(1)) is amended by 
        striking ``maintain a branch if--'' and all that follows 
        through the end of subparagraph (B) and inserting ``maintain a 
        branch.''.
            (2) Clerical amendment.--The heading for subsection (g) of 
        section 5155 of the Revised Statutes of the United States is 
        amended by striking ``State `Opt-In' Election to Permit''.
    (b) De Novo Interstate Branches of State Nonmember Banks.--
            (1) In general.--Section 18(d)(4)(A) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1828(d)(4)(A)) is amended by striking 
        ``maintain a branch if--'' and all that follows through the end 
        of clause (ii) and inserting ``maintain a branch.''.
            (2) Interstate branching by subsidiaries of commercial 
        firms prohibited.--Section 18(d)(3)) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1828(d)(3)) is amended by adding at 
        the end the following new subparagraph:
                    ``(C) Interstate branching by subsidiaries of 
                commercial firms prohibited.--
                            ``(i) In general.--If the appropriate State 
                        bank supervisor of the home State of any 
                        industrial loan company, industrial bank, or 
                        other institution described in section 
                        2(c)(2)(H) of the Bank Holding Company Act of 
                        1956, or the appropriate State bank supervisor 
                        of any host State with respect to such company, 
                        bank, or institution, determines that such 
                        company, bank, or institution is controlled, 
                        directly or indirectly, by a commercial firm, 
                        such company, bank, or institution may not 
                        acquire, establish, or operate a branch in such 
                        host State.
                            ``(ii) Commercial firm defined.--For 
                        purposes of this subsection, the term 
                        `commercial firm' means any entity at least 15 
                        percent of the annual gross revenues of which 
                        on a consolidated basis, including all 
                        affiliates of the entity, were derived from 
                        engaging, on an on-going basis, in activities 
                        that are not financial in nature or incidental 
                        to a financial activity during at least 3 of 
                        the prior 4 calendar quarters.
                            ``(iii) Grandfathered institutions.--Clause 
                        (i) shall not apply with respect to any 
                        industrial loan company, industrial bank, or 
                        other institution described in section 
                        2(c)(2)(H) of the Bank Holding Company Act of 
                        1956--
                                    ``(I) which became an insured 
                                depository institution before October 
                                1, 2003 or pursuant to an application 
                                for deposit insurance which was 
                                approved by the Corporation before such 
                                date; and
                                    ``(II) with respect to which there 
                                is no change in control, directly or 
                                indirectly, of the company, bank, or 
                                institution after September 30, 2003, 
                                that requires an application under 
                                subsection (c), section 7(j), section 3 
                                of the Bank Holding Company Act of 
                                1956, or section 10 of the Home Owners' 
                                Loan Act.
                            ``(iv) Transition provision.--Any 
                        divestiture required under this subparagraph of 
                        a branch in a host State shall be completed as 
                        quickly as is reasonably possible.
                            ``(v) Corporate reorganizations 
                        permitted.--The acquisition of direct or 
                        indirect control of the company, bank, or 
                        institution referred to in clause (iii)(II) 
                        shall not be treated as a `change in control' 
                        for purposes of such clause if the company 
                        acquiring control is itself directly or 
                        indirectly controlled by a company that was an 
                        affiliate of such company, bank, or institution 
                        on the date referred to in clause (iii)(II), 
                        and remained an affiliate at all times after 
                        such date.''.
            (3) Technical and conforming amendments.--Section 18(d)(4) 
        of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)(4)) is 
        amended--
                    (A) in subparagraph (A) by striking ``Subject to 
                subparagraph (B)'' and inserting ``Subject to 
                subparagraph (B) and paragraph (3)(C)''; and
                    (B) in subparagraphs (D) and (E), by striking ``The 
                term'' and inserting ``For purposes of this subsection, 
                the term''.

            (4) Clerical amendment.--The heading for paragraph (4) of 
        section 18(d) of the Federal Deposit Insurance Act is amended 
        by striking ``State `opt-in' election to permit interstate'' 
        and inserting ``Interstate''.
    (c) De Novo Interstate Branches of State Member Banks.--The 3rd 
undesignated paragraph of section 9 of the Federal Reserve Act (12 
U.S.C. 321) is amended by adding at the end the following new 
sentences: ``A State member bank may establish and operate a de novo 
branch in a host State (as such terms are defined in section 18(d) of 
the Federal Deposit Insurance Act) on the same terms and conditions and 
subject to the same limitations and restrictions as are applicable to 
the establishment of a de novo branch of a national bank in a host 
State under section 5155(g) of the Revised Statutes of the United 
States or are applicable to an insured State nonmember bank under 
section 18(d)(3) of the Federal Deposit Insurance Act'' after ``Revised 
Statutes of the United States''. Such section 5155(g) shall be applied 
for purposes of the preceding sentence by substituting `Board of 
Governors of the Federal Reserve System' for `Comptroller of the 
Currency' and `State member bank' for `national bank'.''.
    (d) Interstate Merger of Banks.--
            (1) Merger of insured bank with another depository 
        institution or trust company.--Section 44(a)(1) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831u(a)(1)) is amended--
                    (A) by striking ``Beginning on June 1, 1997, the'' 
                and inserting ``The''; and
                    (B) by striking ``insured banks with different home 
                States'' and inserting ``an insured bank and another 
                insured depository institution or trust company with a 
                different home State than the resulting insured bank''.
            (2) National bank trust company merger with other trust 
        company.--Subsection (b) of section 4 of the National Bank 
        Consolidation and Merger Act (12 U.S.C. 215a-1(b)) is amended 
        to read as follows:
    ``(b) Merger of National Bank Trust Company With Another Trust 
Company.--A national bank that is a trust company may engage in a 
consolidation or merger under this Act with any trust company with a 
different home State, under the same terms and conditions that would 
apply if the trust companies were located within the same State.''.
    (e) Interstate Fiduciary Activity.--Section 18(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by adding at the 
end the following new paragraph:
            ``(5) Interstate fiduciary activity.--
                    ``(A) Authority of state bank supervisor.--The 
                State bank supervisor of a State bank may approve an 
                application by the State bank, when not in 
                contravention of home State or host State law, to act 
                as trustee, executor, administrator, registrar of 
                stocks and bonds, guardian of estates, assignee, 
                receiver, committee of estates of lunatics, or in any 
                other fiduciary capacity in a host State in which State 
                banks or other corporations which come into competition 
                with national banks are permitted to act under the laws 
                of such host State.
                    ``(B) Noncontravention of host state law.--Whenever 
                the laws of a host State authorize or permit the 
                exercise of any or all of the foregoing powers by State 
                banks or other corporations which compete with national 
                banks, the granting to and the exercise of such powers 
                by a State bank as provided in this paragraph shall not 
                be deemed to be in contravention of host State law 
                within the meaning of this paragraph.
                    ``(C) State bank includes trust companies.--For 
                purposes of this paragraph, the term `State bank' 
                includes any State-chartered trust company (as defined 
                in section 44(g)).
                    ``(D) Other definitions.--For purposes of this 
                paragraph, the term `home State' and `host State' have 
                the meanings given such terms in section 44.''.
    (f) Technical and Conforming Amendments.--
            (1) Section 44 of the Federal Deposit Insurance Act (12 
        U.S.C. 1831u) is amended--
                    (A) in subsection (a)--
                            (i) by striking paragraph (4) and inserting 
                        the following new paragraph:
            ``(4) Treatment of branches in connection with certain 
        interstate merger transactions.--In the case of an interstate 
        merger transaction which involves the acquisition of a branch 
        of an insured depository institution or trust company without 
        the acquisition of the insured depository institution or trust 
        company, the branch shall be treated, for purposes of this 
        section, as an insured depository institution or trust company 
        the home State of which is the State in which the branch is 
        located.''; and
                            (ii) by striking paragraphs (5) and (6) and 
                        inserting the following new paragraph:
            ``(5) Applicability to industrial loan companies.--No 
        provision of this section shall be construed as authorizing the 
        approval of any transaction involving a industrial loan 
        company, industrial bank, or other institution described in 
        section 2(c)(2)(H) of the Bank Holding Company Act of 1956, or 
        the acquisition, establishment, or operation of a branch by any 
        such company, bank, or institution, that is not allowed under 
        section 18(d)(3).''.
                    (B) in subsection (b)--
                            (i) by striking ``bank'' each place such 
                        term appears in paragraph (2)(B)(i) and 
                        inserting ``insured depository institution'';
                            (ii) by striking ``banks'' where such term 
                        appears in paragraph (2)(E) and inserting 
                        ``insured depository institutions or trust 
                        companies'';
                            (iii) by striking ``bank affiliate'' each 
                        place such term appears in that portion of 
                        paragraph (3) that precedes subparagraph (A) 
                        and inserting ``insured depository institution 
                        affiliate'';
                            (iv) by striking ``any bank'' where such 
                        term appears in paragraph (3)(B) and inserting 
                        ``any insured depository institution'';
                            (v) by striking ``bank'' where such term 
                        appears in paragraph (4)(A) and inserting 
                        ``insured depository institution and trust 
                        company''; and
                            (vi) by striking ``all banks'' where such 
                        term appears in paragraph (5) and inserting 
                        ``all insured depository institutions and trust 
                        companies'';
                    (C) in subsection (d)(1), by striking ``any bank'' 
                and inserting ``any insured depository institution or 
                trust company'';
                    (D) in subsection (e)--
                            (i) by striking ``1 or more banks'' and 
                        inserting ``1 or more insured depository 
                        institutions''; and
                            (ii) by striking ``paragraph (2), (4), or 
                        (5)'' and inserting ``paragraph (2)'';
                    (E) by striking clauses (i) and (ii) of subsection 
                (g)(4)(A) and inserting the following new clauses:
                            ``(i) with respect to a national bank or 
                        Federal savings association, the State in which 
                        the main office of the bank or savings 
                        association is located; and
                            ``(ii) with respect to a State bank, State 
                        savings association, or State-chartered trust 
                        company, the State by which the bank, savings 
                        association, or trust company is chartered; 
                        and'';
                    (F) by striking paragraph (5) of subsection (g) and 
                inserting the following new paragraph:
            ``(5) Host state.--The term `host State' means--
                    ``(A) with respect to a bank, a State, other than 
                the home State of the bank, in which the bank 
                maintains, or seeks to establish and maintain, a 
                branch; and
                    ``(B) with respect to a trust company and solely 
                for purposes of section 18(d)(5), a State, other than 
                the home State of the trust company, in which the trust 
                company acts, or seeks to act, in 1 or more fiduciary 
                capacities.'';
                    (G) in subsection (g)(10), by striking ``section 
                18(c)(2)'' and inserting ``paragraph (1) or (2) of 
                section 18(c), as appropriate,''; and
                    (H) in subsection (g), by adding at the end the 
                following new paragraph:
            ``(12) Trust company.--The term `trust company' means--
                    ``(A) any national bank;
                    ``(B) any savings association; and
                    ``(C) any bank, banking association, trust company, 
                savings bank, or other banking institution which is 
                incorporated under the laws of any State,
        that is authorized to act in 1 or more fiduciary capacities but 
        is not engaged in the business of receiving deposits other than 
        trust funds (as defined in section 3(p)).''.
            (2) Section 3(d) of the Bank Holding Company Act of 1956 
        (12 U.S.C. 1842(d)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking subparagraphs (B) and (C); 
                        and
                            (ii) by redesignating subparagraph (D) as 
                        subparagraph (B); and
                    (B) in paragraph (5), by striking ``subparagraph 
                (B) or (D)'' and inserting ``subparagraph (B)''.
            (3) Subsection (c) of section 4 of the National Bank 
        Consolidation and Merger Act (12 U.S.C. 215a-1(c)) is amended 
        to read as follows:
    ``(c) Definitions.--For purposes of this section, the terms `home 
State', `out-of-State bank', and `trust company' each have the same 
meaning as in section 44(g) of the Federal Deposit Insurance Act.''.
    (g) Clerical Amendments.--
            (1) The heading for section 44(b)(2)(E) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1831u(b)(2)(E)) is amended by 
        striking ``banks'' and inserting ``insured depository 
        institutions and trust companies''.
            (2) The heading for section 44(e) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1831u(e)) is amended by striking 
        ``Banks'' and inserting ``Insured Depository Institutions''.

SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW OF APPOINTMENT OF 
              A RECEIVER FOR DEPOSITORY INSTITUTIONS.

    (a) National Banks.--Section 2 of the National Bank Receivership 
Act (12 U.S.C. 191) is amended--
            (1) by striking ``Section 2. The Comptroller of the 
        Currency'' and inserting the following:

``SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL BANK.

    ``(a) In General.--The Comptroller of the Currency''; and
            (2) by adding at the end the following new subsection:
    ``(b) Judicial Review.--If the Comptroller of the Currency appoints 
a receiver under subsection (a), the national bank may, within 30 days 
thereafter, bring an action in the United States district court for the 
judicial district in which the home office of such bank is located, or 
in the United States District Court for the District of Columbia, for 
an order requiring the Comptroller of the Currency to remove the 
receiver, and the court shall, upon the merits, dismiss such action or 
direct the Comptroller of the Currency to remove the receiver.''.
    (b) Insured Depository Institutions.--Section 11(c)(7) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(c)(7)) is amended to read 
as follows:
            ``(7) Judicial review.--If the Corporation is appointed 
        (including the appointment of the Corporation as receiver by 
        the Board of Directors) as conservator or receiver of a 
        depository institution under paragraph (4), (9), or (10), the 
        depository institution may, within 30 days thereafter, bring an 
        action in the United States district court for the judicial 
        district in which the home office of such depository 
        institution is located, or in the United States District Court 
        for the District of Columbia, for an order requiring the 
        Corporation to be removed as the conservator or receiver 
        (regardless of how such appointment was made), and the court 
        shall, upon the merits, dismiss such action or direct the 
        Corporation to be removed as the conservator or receiver.''.
    (c) Expansion of Period for Challenging the Appointment of a 
Liquidating Agent.--Subparagraph (B) of section 207(a)(1) of the 
Federal Credit Union Act (12 U.S.C. 1787(a)(1)) is amended by striking 
``10 days'' and inserting ``30 days''.
    (d) Effective Date.--The amendments made by subsections (a), (b), 
and (c) shall apply with respect to conservators, receivers, or 
liquidating agents appointed on or after the date of the enactment of 
this Act.

SEC. 403. REPORTING REQUIREMENTS RELATING TO INSIDER LENDING.

    (a) Reporting Requirements Regarding Loans to Executive Officers of 
Member Banks.--Section 22(g) of the Federal Reserve Act (12 U.S.C. 
375a) is amended--
            (1) by striking paragraphs (6) and (9); and
            (2) by redesignating paragraphs (7), (8), and (10) as 
        paragraphs (6), (7), and (8), respectively.
    (b) Reporting Requirements Regarding Loans From Correspondent Banks 
to Executive Officers and Shareholders of Insured Banks.--Section 
106(b)(2) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 
1972(2)) is amended--
            (1) by striking subparagraph (G); and
            (2) by redesignating subparagraphs (H) and (I) as 
        subparagraphs (G) and (H), respectively.

SEC. 404. AMENDMENT TO PROVIDE AN INFLATION ADJUSTMENT FOR THE SMALL 
              DEPOSITORY INSTITUTION EXCEPTION UNDER THE DEPOSITORY 
              INSTITUTION MANAGEMENT INTERLOCKS ACT.

    Section 203(1) of the Depository Institution Management Interlocks 
Act (12 U.S.C. 3202(1)) is amended by striking ``$20,000,000'' and 
inserting ``$100,000,000''.

SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF INSURED DEPOSITORY 
              INSTITUTIONS.

    (a) Clarification Relating to the Enforceability of Agreements and 
Conditions.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) 
is amended by adding at the end the following new section:

``SEC. 49. ENFORCEMENT OF AGREEMENTS.

    ``(a) In General.--Notwithstanding clause (i) or (ii) of section 
8(b)(6)(A) or section 38(e)(2)(E)(i), an appropriate Federal banking 
agency may enforce, under section 8, the terms of--
            ``(1) any condition imposed in writing by the agency on a 
        depository institution or an institution-affiliated party 
        (including a bank holding company) in connection with any 
        action on any application, notice, or other request concerning 
        a depository institution; or
            ``(2) any written agreement entered into between the agency 
        and an institution-affiliated party (including a bank holding 
        company).
    ``(b) Receiverships and Conservatorships.--After the appointment of 
the Corporation as the receiver or conservator for any insured 
depository institution, the Corporation may enforce any condition or 
agreement described in paragraph (1) or (2) of subsection (a) involving 
such institution or any institution-affiliated party (including a bank 
holding company), through an action brought in an appropriate United 
States district court.''.
    (b) Protection of Capital of Insured Depository Institutions.--
Paragraph (1) of section 18(u) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(u)) is amended by striking subparagraph (B) and by 
redesignating subparagraph (C) as subparagraph (B).

SEC. 406. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK SERVICE 
              COMPANIES AUTHORIZED.

    (a) In General.--Sections 2 and 3 of the Bank Service Company Act 
(12 U.S.C. 1862, 1863) are each amended by striking ``insured bank'' 
each place such term appears and inserting ``insured depository 
institution''.
    (b) Technical and Conforming Amendments.--
            (1) Section 1(b)(4) of the Bank Service Company Act (12 
        U.S.C. 1861(b)(4)) is amended--
                    (A) by inserting ``, except when such term appears 
                in connection with the term `insured depository 
                institution','' after ``means''; and
                    (B) by striking ``Federal Home Loan Bank Board'' 
                and inserting ``Director of the Office of Thrift 
                Supervision''.
            (2) Section 1(b) of the Bank Service Company Act (12 U.S.C. 
        1861(b)) is amended--
                    (A) by striking paragraph (5) and inserting the 
                following new paragraph:
            ``(5) Insured depository institution.--The term `insured 
        depository institution' has the meaning given the term in 
        section 3(c) of the Federal Deposit Insurance Act;'';
                    (B) by striking ``and'' at the end of paragraph 
                (7);
                    (C) by striking the period at the end of paragraph 
                (8) and inserting ``; and''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(9) the terms `State depository institution', `Federal 
        depository institution', `State savings association' and 
        `Federal savings association' have the meanings given the terms 
        in section 3 of the Federal Deposit Insurance Act.''.
            (3) The 1st sentence of section 5(c)(4)(B) of the Home 
        Owners' Loan Act (12 U.S.C. 1464(c)(4)(B)) is amended by 
        striking ``by savings associations of such State and by Federal 
        associations'' and inserting ``by State and Federal depository 
        institutions''.
            (4) Subparagraph (A)(ii) and subparagraph (B)(ii) of 
        section 1(b)(2) of the Bank Service Company Act (12 U.S.C. 
        1861(b)(2)) are each amended by striking ``insured banks'' and 
        inserting ``insured depository institutions''.
            (5) Section 1(b)(8) of the Bank Service Company Act (12 
        U.S.C. 1861(b)(8)) is further amended--
                    (A) by striking ``insured bank'' and inserting 
                ``insured depository institution'';
                    (B) by striking ``insured banks'' each place such 
                term appears and inserting ``insured depository 
                institutions''; and
                    (C) by striking ``the bank's'' and inserting ``the 
                depository institution's''.
            (6) Section 2 of the Bank Service Company Act (12 U.S.C. 
        1862) is amended by inserting ``or savings associations, other 
        than the limitation on the amount of investment by a Federal 
        savings association contained in section 5(c)(4)(B) of the Home 
        Owners' Loan Act'' after ``relating to banks''.
            (7) Section 4(c) of the Bank Service Company Act (12 U.S.C. 
        1864(c)) is amended by inserting ``or State savings 
        association'' after ``State bank'' each place such term 
        appears.
            (8) Section 4(d) of the Bank Service Company Act (12 U.S.C. 
        1864(d)) is amended by inserting ``or Federal savings 
        association'' after ``national bank'' each place such term 
        appears.
            (9) Section 4(e) of the Bank Service Company Act (12 U.S.C. 
        1864(e)) is amended to read as follows:
    ``(e) A bank service company may perform--
            ``(1) only those services that each depository institution 
        shareholder or member is otherwise authorized to perform under 
        any applicable Federal or State law; and
            ``(2) such services only at locations in a State in which 
        each such shareholder or member is authorized to perform such 
        services.''.
            (10) Section 4(f) of the Bank Service Company Act (12 
        U.S.C. 1864(f)) is amended by inserting ``or savings 
        associations'' after ``location of banks''.
            (11) Section 5 of the Bank Service Company Act (12 U.S.C. 
        1865) is amended--
                    (A) in subsection (a)--
                            (i) by striking ``insured bank'' and 
                        inserting ``insured depository institution''; 
                        and
                            (ii) by striking ``bank's'' and inserting 
                        ``institution's''.
                    (B) in subsection (b), by striking ``insured bank'' 
                and inserting ``insured depository institution''; and
                    (C) in subsection (c)--
                            (i) by striking ``the bank or banks'' and 
                        inserting ``any depository institution''; and
                            (ii) by striking ``capability of the bank'' 
                        and inserting ``capability of the depository 
                        institution''.
            (12) Section 7 of the Bank Service Company Act (12 U.S.C. 
        1867) is amended--
                    (A) in subsection (b), by striking ``insured bank'' 
                and inserting ``insured depository institution''; and
                    (B) in subsection (c)--
                            (i) by striking ``a bank'' each place such 
                        term appears and inserting ``a depository 
                        institution''; and
                            (ii) by striking ``the bank'' each place 
                        such term appears and inserting ``the 
                        depository institution''.

SEC. 407. CROSS GUARANTEE AUTHORITY.

    Subparagraph (A) of section 5(e)(9) of the Federal Deposit 
Insurance Act (12 U.S.C. 1815(e)(9)(A)) is amended to read as follows:
                    ``(A) such institutions are controlled by the same 
                company; or''.

SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK HOLDING COMPANIES.

    Subsection (k) of section 18 of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(k)) is amended--
            (1) in paragraph (2)(A), by striking ``or depository 
        institution holding company'' and inserting ``or covered 
        company'';
            (2) by striking subparagraph (B) of paragraph (2) and 
        inserting the following new subparagraph:
                    ``(B) Whether there is a reasonable basis to 
                believe that the institution-affiliated party is 
                substantially responsible for--
                            ``(i) the insolvency of the depository 
                        institution or covered company;
                            ``(ii) the appointment of a conservator or 
                        receiver for the depository institution; or
                            ``(iii) the depository institution's 
                        troubled condition (as defined in the 
                        regulations prescribed pursuant to section 
                        32(f)).'';
            (3) in paragraph (2)(F), by striking ``depository 
        institution holding company'' and inserting ``covered 
        company,'';
            (4) in paragraph (3) in the matter preceding subparagraph 
        (A), by striking ``depository institution holding company'' and 
        inserting ``covered company'';
            (5) in paragraph (3)(A), by striking ``holding company'' 
        and inserting ``covered company'';
            (6) in paragraph (4)(A)--
                    (A) by striking ``depository institution holding 
                company'' each place such term appears and inserting 
                ``covered company''; and
                    (B) by striking ``holding company'' each place such 
                term appears (other than in connection with the term 
                referred to in subparagraph (A)) and inserting 
                ``covered company'';
            (7) in paragraph (5)(A), by striking ``depository 
        institution holding company'' and inserting ``covered 
        company'';
            (8) in paragraph (5), by adding at the end the following 
        new subparagraph:
                    ``(D) Covered company.--The term `covered company' 
                means any depository institution holding company 
                (including any company required to file a report under 
                section 4(f)(6) of the Bank Holding Company Act of 
                1956), or any other company that controls an insured 
                depository institution.''; and
            (9) in paragraph (6)--
                    (A) by striking ``depository institution holding 
                company'' and inserting ``covered company,''; and
                    (B) by striking ``or holding company'' and 
                inserting ``or covered company''.

SEC. 409. AMENDMENTS RELATING TO CHANGE IN BANK CONTROL.

    Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(j)) is amended--
            (1) in paragraph (1)(D)--
                    (A) by striking ``is needed to investigate'' and 
                inserting ``is needed--
                            ``(i) to investigate'';
                    (B) by striking ``United States Code.'' and 
                inserting ``United States Code; or''; and
                    (C) by adding at the end the following new clause:
                            ``(ii) to analyze the safety and soundness 
                        of any plans or proposals described in 
                        paragraph (6)(E) or the future prospects of the 
                        institution.''; and
            (2) in paragraph (7)(C), by striking ``the financial 
        condition of any acquiring person'' and inserting ``either the 
        financial condition of any acquiring person or the future 
        prospects of the institution''.

         TITLE V--DEPOSITORY INSTITUTION AFFILIATES PROVISIONS

SEC. 501. CLARIFICATION OF CROSS MARKETING PROVISION.

    Section 4(n)(5) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(n)(5)) is amended--
            (1) in subparagraph (B), by striking ``subsection 
        (k)(4)(I)'' and inserting ``subparagraph (H) or (I) of 
        subsection (k)(4)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Threshold of control.--Subparagraph (A) shall 
                not apply with respect to a company described or 
                referred to in clause (i) or (ii) of such subparagraph 
                if the financial holding company does not own or 
                control 25 percent or more of the total equity or any 
                class of voting securities of such company.''.

SEC. 502. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD WITH 
              DISCRETION CONCERNING THE IMPUTATION OF CONTROL OF SHARES 
              OF A COMPANY BY TRUSTEES.

    Section 2(g)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(g)(2)) is amended by inserting ``, unless the Board determines 
that such treatment is not appropriate in light of the facts and 
circumstances of the case and the purposes of this Act'' before the 
period at the end.

SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON THRIFT SERVICE COMPANIES.

    (a) In General.--The 1st sentence of section 5(c)(4)(B) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(4)(B)) (as amended by section 
406(b)(3) of this Act) is amended--
            (1) by striking ``corporation organized'' and all that 
        follows through ``is available for purchase'' and inserting 
        ``company, if the entire capital of the company is available 
        for purchase''; and
            (2) by striking ``having their home offices in such 
        State''.
    (b) Technical Corrections.--
            (1) The heading for subparagraph (B) of section 5(c)(4) of 
        the Home Owners' Loan Act (12 U.S.C. 1464(c)(4)(B)) is amended 
        by striking ``corporations'' and inserting ``companies''.
            (2) The 2nd sentence of section 5(n)(1) of the Home Owners' 
        Loan Act (12 U.S.C. 1464(n)(1)) is amended by striking 
        ``service corporations'' and inserting ``service companies''.
            (3) Section 5(q)(1) of the Home Owners' Loan Act (12 U.S.C. 
        1464(q)(1)) is amended by striking ``service corporation'' each 
        place such term appears in subparagraphs (A), (B), and (C) and 
        inserting ``service company''.
            (4) Section 10(m)(4)(C)(iii)(II) of the Home Owners' Loan 
        Act (12 U.S.C. 1467a(m)(4)(C)(iii)(II)) is amended by striking 
        ``service corporation'' each place such term appears and 
        inserting ``service company''.

SEC. 504. CLARIFICATION OF SCOPE OF APPLICABLE RATE PROVISION.

    Section 44(f) of the Federal Deposit Insurance Act (12 U.S.C. 
1831u(f)) is amended by adding at the end the following new paragraphs:
            ``(3) Other lenders.--In the case of any other lender doing 
        business in the State described in paragraph (1), the maximum 
        interest rate or amount of interest, discount points, finance 
        charges, or other similar charges that may be charged, taken, 
        received, or reserved from time to time in any loan, discount, 
        or credit sale made, or upon any note, bill of exchange, 
        financing transaction, or other evidence of debt issued to or 
        acquired by any other lender shall be equal to not more than 
        the greater of the rates described in subparagraph (A) or (B) 
        of paragraph (1).
            ``(4) Other lender defined.--For purposes of paragraph (3), 
        the term `other lender' means any person engaged in the 
        business of selling or financing the sale of personal property 
        (and any services incidental to the sale of personal property) 
        in such State, except that, with regard to any person or entity 
        described in such paragraph, such term does not include--
                    ``(A) an insured depository institution; or
                    ``(B) any person or entity engaged in the business 
                of providing a short-term cash advance to any consumer 
                in exchange for--
                            ``(i) a consumer's personal check or share 
                        draft, in the amount of the advance plus a fee, 
                        where presentment or negotiation of such check 
                        or share draft is deferred by agreement of the 
                        parties until a designated future date; or
                            ``(ii) a consumer authorization to debit 
                        the consumer's transaction account, in the 
                        amount of the advance plus a fee, where such 
                        account will be debited on or after a 
                        designated future date.''.

                  TITLE VI--BANKING AGENCY PROVISIONS

SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER TO ALLOCATE EXAMINER 
              RESOURCES.

    Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)) is amended--
            (1) by redesignating paragraphs (5), (6), (7), (8), (9), 
        and (10) as paragraphs (6), (7), (8), (9), (10), and (11), 
        respectively;
            (2) by inserting after paragraph (4), the following new 
        paragraph:
            ``(5) Waiver of schedule when necessary to achieve safe and 
        sound allocation of examiner resources.--Notwithstanding 
        paragraphs (1), (2), (3), and (4), an appropriate Federal 
        banking agency may make adjustments in the examination cycle 
        for an insured depository institution if necessary to allocate 
        available resources of examiners in a manner that provides for 
        the safety and soundness of, and the effective examination and 
        supervision of, insured depository institutions.''; and
            (3) in paragraphs (8) and (9), as so redesignated, by 
        striking ``paragraph (6)'' and inserting ``paragraph (7)''.

SEC. 602. INTERAGENCY DATA SHARING.

    (a) Federal Banking Agencies.--Section 7(a)(2) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(a)(2)) is amended by adding at 
the end the following new subparagraph:
                    ``(C) Data sharing with other agencies and 
                persons.--In addition to reports of examination, 
                reports of condition, and other reports required to be 
                regularly provided to the Corporation (with respect to 
                all insured depository institutions, including a 
                depository institution for which the Corporation has 
                been appointed conservator or receiver) or an 
                appropriate State bank supervisor (with respect to a 
                State depository institution) under subparagraph (A) or 
                (B), a Federal banking agency may, in the agency's 
                discretion, furnish any report of examination or other 
                confidential supervisory information concerning any 
                depository institution or other entity examined by such 
                agency under authority of any Federal law, to--
                            ``(i) any other Federal or State agency or 
                        authority with supervisory or regulatory 
                        authority over the depository institution or 
                        other entity;
                            ``(ii) any officer, director, or receiver 
                        of such depository institution or entity; and
                            ``(iii) any other person the Federal 
                        banking agency determines to be appropriate.''.
    (b) National Credit Union Administration.--Section 202(a) of the 
Federal Credit Union Act (12 U.S.C. 1782(a)) is amended by adding at 
the end the following new paragraph:
            ``(8) Data sharing with other agencies and persons.--In 
        addition to reports of examination, reports of condition, and 
        other reports required to be regularly provided to the Board 
        (with respect to all insured credit unions, including a credit 
        union for which the Corporation has been appointed conservator 
        or liquidating agent) or an appropriate State commission, 
board, or authority having supervision of a State-chartered credit 
union, the Board may, in the Board's discretion, furnish any report of 
examination or other confidential supervisory information concerning 
any credit union or other entity examined by the Board under authority 
of any Federal law, to--
                    ``(A) any other Federal or State agency or 
                authority with supervisory or regulatory authority over 
                the credit union or other entity;
                    ``(B) any officer, director, or receiver of such 
                credit union or entity; and
                    ``(C) any other institution-affiliated party of 
                such credit union or entity the Board determines to be 
                appropriate.''.

SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION BY CONVICTED 
              INDIVIDUAL.

    Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) is 
amended by adding at the end the following new subsection:
    ``(c) Noninsured Banks.--Subsections (a) and (b) shall apply to a 
noninsured national bank and a noninsured State member bank, and any 
agency or noninsured branch (as such terms are defined in section 1(b) 
of the International Banking Act of 1978) of a foreign bank as if such 
bank, branch, or agency were an insured depository institution, except 
such subsections shall be applied for purposes of this subsection by 
substituting the agency determined under the following paragraphs for 
`Corporation' each place such term appears in such subsections:
            ``(1) The Comptroller of the Currency, in the case of a 
        noninsured national bank or any Federal agency or noninsured 
        Federal branch of a foreign bank.
            ``(2) The Board of Governors of the Federal Reserve System, 
        in the case of a noninsured State member bank or any State 
        agency or noninsured State branch of a foreign bank.''.

SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF OLD RECORDS OF A 
              DEPOSITORY INSTITUTION BY THE FDIC AFTER THE APPOINTMENT 
              OF THE FDIC AS RECEIVER.

    Section 11(d)(15)(D) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(d)(15)(D)) is amended--
            (1) by striking ``Recordkeeping requirement.--After the end 
        of the 6-year period'' and inserting ``Recordkeeping 
        requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), after the end of the 6-year 
                        period''; and
            (2) by adding at the end the following new clause:
                            ``(ii) Old records.--In the case of records 
                        of an insured depository institution which are 
                        at least 10 years old as of the date the 
                        Corporation is appointed as the receiver of 
                        such depository institution, the Corporation 
                        may destroy such records in accordance with 
                        clause (i) any time after such appointment is 
                        final without regard to the 6-year period of 
limitation contained in such clause.''.

SEC. 605. MODERNIZATION OF RECORDKEEPING REQUIREMENT.

    Subsection (f) of section 10 of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(f)) is amended to read as follows:
    ``(f) Preservation of Agency Records.--
            ``(1) In general.--A Federal banking agency may cause any 
        and all records, papers, or documents kept by the agency or in 
        the possession or custody of the agency to be--
                    ``(A) photographed or microphotographed or 
                otherwise reproduced upon film; or
                    ``(B) preserved in any electronic medium or format 
                which is capable of--
                            ``(i) being read or scanned by computer; 
                        and
                            ``(ii) being reproduced from such 
                        electronic medium or format by printing or any 
                        other form of reproduction of electronically 
                        stored data.
            ``(2) Treatment as original records.--Any photographs, 
        microphotographs, or photographic film or copies thereof 
        described in paragraph (1)(A) or reproduction of electronically 
stored data described in paragraph (1)(B) shall be deemed to be an 
original record for all purposes, including introduction in evidence in 
all State and Federal courts or administrative agencies and shall be 
admissible to prove any act, transaction, occurrence, or event therein 
recorded.
            ``(3) Authority of the federal banking agencies.--Any 
        photographs, microphotographs, or photographic film or copies 
        thereof described in paragraph (1)(A) or reproduction of 
        electronically stored data described in paragraph (1)(B) shall 
        be preserved in such manner as the Federal banking agency shall 
        prescribe and the original records, papers, or documents may be 
        destroyed or otherwise disposed of as the Federal banking 
        agency may direct.''.

SEC. 606. CLARIFICATION OF EXTENT OF SUSPENSION, REMOVAL, AND 
              PROHIBITION AUTHORITY OF FEDERAL BANKING AGENCIES IN 
              CASES OF CERTAIN CRIMES BY INSTITUTION-AFFILIATED 
              PARTIES.

    (a) Insured Depository Institution.--
            (1) In general.--Section 8(g)(1) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1818(g)(1)) is amended--
                    (A) in subparagraph (A), by striking ``the 
                depository'' each place such term appears and inserting 
                ``any depository'';
                    (B) in subparagraph (B)(i), by inserting ``of which 
                the subject of the order is an institution-affiliated 
                party'' before the period at the end;
                    (C) in subparagraph (C), by striking ``the 
                depository'' each place such term appears and inserting 
                ``any depository'';
                    (D) in subparagraph (D)(i), by inserting ``of which 
                the subject of the order is an institution-affiliated 
                party'' after ``upon the depository institution''; and
                    (E) by adding at the end the following new 
                subparagraph:
                    ``(E) Continuation of authority.--A Federal banking 
                agency may issue an order under this paragraph with 
                respect to an individual who is an institution-
                affiliated party at a depository institution at the 
                time of an offense described in subparagraph (A) 
                without regard to--
                            ``(i) whether such individual is an 
                        institution-affiliated party at any depository 
                        institution at the time the order is considered 
                        or issued by the agency; or
                            ``(ii) whether the depository institution 
                        at which the individual was an institution-
                        affiliated party at the time of the offense 
                        remains in existence at the time the order is 
                        considered or issued by the agency.''.
            (2) Clerical amendment.--Section 8(g) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1818(g)) is amended by 
        striking ``(g)'' and inserting the following new subsection 
        heading:
    ``(g) Suspension, Removal, and Prohibition From Participation 
Orders in the Case of Certain Criminal Offenses.--''.
    (b) Insured Credit Unions.--
            (1) In general.--Section 206(i)(1) of the Federal Credit 
        Union Act (12 U.S.C. 1786(i)(1)) is amended--
                    (A) in subparagraph (A), by striking ``the credit 
                union'' each place such term appears and inserting 
                ``any credit union'';
                    (B) in subparagraph (B)(i), by inserting ``of which 
                the subject of the order is, or most recently was, an 
                institution-affiliated party'' before the period at the 
                end;
                    (C) in subparagraph (C), by striking ``the credit 
                union'' each place such term appears and inserting 
                ``any credit union'';
                    (D) in subparagraph (D)(i), by striking ``upon such 
                credit union'' and inserting ``upon the credit union of 
                which the subject of the order is, or most recently 
                was, an institution-affiliated party''; and
                    (E) by adding at the end the following new 
                subparagraph:
                    ``(E) Continuation of authority.--The Board may 
                issue an order under this paragraph with respect to an 
                individual who is an institution-affiliated party at a 
                credit union at the time of an offense described in 
                subparagraph (A) without regard to--
                            ``(i) whether such individual is an 
                        institution-affiliated party at any credit 
                        union at the time the order is considered or 
                        issued by the Board; or
                            ``(ii) whether the credit union at which 
                        the individual was an institution-affiliated 
                        party at the time of the offense remains in 
                        existence at the time the order is considered 
                        or issued by the Board.''.
            (2) Clerical amendment.--Section 206(i) of the Federal 
        Credit Union Act (12 U.S.C. 1786(i)) is amended by striking 
        ``(i)'' at the beginning and inserting the following new 
        subsection heading:
    ``(i) Suspension, Removal, and Prohibition From Participation 
Orders in the Case of Certain Criminal Offenses.--''.

SEC. 607. STREAMLINING DEPOSITORY INSTITUTION MERGER APPLICATION 
              REQUIREMENTS.

    (a) In General.--Paragraph (4) of section 18(c) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(c)) is amended to read as 
follows:
            ``(4) Reports on competitive factors.--
                    ``(A) Request for report.--In the interests of 
                uniform standards, before acting on any application for 
                approval of a merger transaction, the responsible 
                agency, unless the agency finds that it must act 
                immediately in order to prevent the probable failure of 
                a depository institution involved, shall--
                            ``(i) request a report on the competitive 
                        factors involved from the Attorney General; and
                            ``(ii) provide a copy of the request to the 
                        Corporation (when the Corporation is not the 
                        responsible agency).
                    ``(B) Furnishing of report.--The report requested 
                under subparagraph (A) shall be furnished by the 
                Attorney General to the responsible agency--
                            ``(i) not more than 30 calendar days after 
                        the date on which the Attorney General received 
                        the request; or
                            ``(ii) not more than 10 calendar days after 
                        such date, if the requesting agency advises the 
                        Attorney General that an emergency exists 
                        requiring expeditious action.''.
    (b) Technical and Conforming Amendment.--The penultimate sentence 
of section 18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)(6)) is amended to read as follows: ``If the agency has advised 
the Attorney General under paragraph (4)(B) 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.''.

SEC. 608. INCLUSION OF DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION IN 
              LIST OF BANKING AGENCIES REGARDING INSURANCE CUSTOMER 
              PROTECTION REGULATIONS.

    Section 47(g)(2)(B)(i) of the Federal Deposit Insurance Act (12 
U.S.C. 1831x(g)(2)(B)(i)) is amended by inserting ``the Director of the 
Office of Thrift Supervision,'' after ``Comptroller of the Currency,''.

SEC. 609. PROTECTION OF CONFIDENTIAL INFORMATION RECEIVED BY FEDERAL 
              BANKING REGULATORS FROM FOREIGN BANKING SUPERVISORS.

    Section 15 of the International Banking Act of 1978 (12 U.S.C. 
3109) is amended by adding at the end the following new subsection:
    ``(c) Confidential Information Received From Foreign Supervisors.--
            ``(1) In General.--Except as provided in paragraph (3), a 
        Federal banking agency may not be compelled to disclose 
        information received from a foreign regulatory or supervisory 
        authority if--
                    ``(A) the foreign regulatory or supervisory 
                authority has, in good faith, determined and 
                represented to such Federal banking agency that public 
                disclosure of the information would violate the laws 
                applicable to that foreign regulatory or supervisory 
                authority; and
                    ``(B) the relevant Federal banking agency obtained 
                such information pursuant to--
                            ``(i) such procedures as the Federal 
                        banking agency may establish for use in 
                        connection with the administration and 
                        enforcement of Federal banking laws; or
                            ``(ii) a memorandum of understanding or 
                        other similar arrangement between the Federal 
                        banking agency and the foreign regulatory or 
                        supervisory authority.
            ``(2) Treatment under title 5, united states code.--For 
        purposes of section 552 of title 5, United States Code, this 
        subsection shall be treated as a statute described in 
        subsection (b)(3)(B) of such section.
            ``(3) Savings provision.--No provision of this section 
        shall be construed as--
                    ``(A) authorizing any Federal banking agency to 
                withhold any information from any duly authorized 
                committee of the House of Representatives or the 
                Senate; or
                    ``(B) preventing any Federal banking agency from 
                complying with an order of a court of the United States 
                in an action commenced by the United States or such 
                agency.
            ``(4) Federal banking agency defined.--For purposes of this 
        subsection, the term `Federal banking agency' means the Board, 
        the Comptroller, the Federal Deposit Insurance Corporation, and 
        the Director of the Office of Thrift Supervision.''.

SEC. 610. PROHIBITION ON PARTICIPATION BY CONVICTED INDIVIDUAL.

    Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) is 
amended by inserting after subsection (c) (as added by section 603 of 
this title) the following new subsections:
    ``(d) Bank Holding Companies.--Subsections (a) and (b) shall apply 
to any bank holding company, any subsidiary (other than a bank) of a 
bank holding company, and any organization organized and operated under 
section 25A of the Federal Reserve Act or operating under section 25 of 
the Federal Reserve Act as if such bank holding company, subsidiary, or 
organization were an insured depository institution, except such 
subsections shall be applied for purposes of this subsection by 
substituting `Board of Governors of the Federal Reserve System' for 
`Corporation' each place such term appears in such subsections.
    ``(e) Savings and Loan Holding Companies.--Subsections (a) and (b) 
shall apply to any savings and loan holding company and any subsidiary 
(other than a savings association) of a savings and loan holding 
company as if such savings and loan holding company or subsidiary were 
an insured depository institution, except such subsections shall be 
applied for purposes of this subsection by substituting `Director of 
the Office of Thrift Supervision' for `Corporation' each place such 
term appears in such subsections.''.

SEC. 611. CLARIFICATION THAT NOTICE AFTER SEPARATION FROM SERVICE MAY 
              BE MADE BY AN ORDER.

    (a) In General.--Section 8(i)(3) of the Federal Deposit Insurance 
Act (12 U.S.C. 1818(i)(3)) is amended by inserting ``or order'' after 
``notice'' each place such term appears.
    (b) Technical and Conforming Amendment.--The heading for section 
8(i)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(3)) is 
amended by inserting ``or order'' after ``Notice''.

SEC. 612. ENFORCEMENT AGAINST MISREPRESENTATIONS REGARDING FDIC DEPOSIT 
              INSURANCE COVERAGE.

    (a) In General.--Section 18(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(a)) is amended by adding at the end the following new 
paragraph:
            ``(4) False advertising, misuse of fdic names, and 
        misrepresentation to indicate insured status.--
                    ``(A) Prohibition on false advertising and misuse 
                of fdic names.--No person may--
                            ``(i) use the terms `Federal Deposit', 
                        `Federal Deposit Insurance', `Federal Deposit 
                        Insurance Corporation', any combination of such 
                        terms, or the abbreviation `FDIC' as part of 
the business name or firm name of any person, including any 
corporation, partnership, business trust, association, or other 
business entity; or
                            ``(ii) use such terms or any other sign or 
                        symbol as part of an advertisement, 
                        solicitation, or other document,
                to represent, suggest or imply that any deposit 
                liability, obligation, certificate or share is insured 
                or guaranteed by the Federal Deposit Insurance 
                Corporation, if such deposit liability, obligation, 
                certificate, or share is not insured or guaranteed by 
                the Corporation.
                    ``(B) Prohibition on misrepresentations of insured 
                status.--No person may knowingly misrepresent--
                            ``(i) that any deposit liability, 
                        obligation, certificate, or share is federally 
                        insured, if such deposit liability, obligation, 
                        certificate, or share is not insured by the 
                        Corporation; or
                            ``(ii) the extent to which or the manner in 
                        which any deposit liability, obligation, 
                        certificate, or share is insured by the Federal 
                        Deposit Insurance Corporation, if such deposit 
                        liability, obligation, certificate, or share is 
                        not insured by the Corporation to the extent or 
                        in the manner represented.
                    ``(C) Authority of fdic.--The Corporation shall 
                have--
                            ``(i) jurisdiction over any person that 
                        violates this paragraph, or aids or abets the 
                        violation of this paragraph; and
                            ``(ii) for purposes of enforcing the 
                        requirements of this paragraph with regard to 
                        any person--
                                    ``(I) the authority of the 
                                Corporation under section 10(c) to 
                                conduct investigations; and
                                    ``(II) the enforcement authority of 
                                the Corporation under subsections (b), 
                                (c), (d) and (i) of section 8,
                as if such person were a state nonmember insured bank.
                    ``(D) Other actions preserved.--No provision of 
                this paragraph shall be construed as barring any action 
                otherwise available, under the laws of the United 
                States or any State, to any Federal or State law 
                enforcement agency or individual.''.
    (b) Enforcement Orders.--Section 8(c) of the Federal Deposit 
Insurance Act (12 U.S.C. 1818(c)) is amended by adding at the end the 
following new paragraph:
            ``(4) False advertising or misuse of names to indicate 
        insured status.--
                    ``(A) Temporary order.--
                            ``(i) In general.--If a notice of charges 
                        served under subsection (b)(1) of this section 
                        specifies on the basis of particular facts that 
                        any person is engaged in conduct described in 
                        section 18(a)(4), the Corporation may issue a 
                        temporary order requiring--
                                    ``(I) the immediate cessation of 
                                any activity or practice described, 
                                which gave rise to the notice of 
                                charges; and
                                    ``(II) affirmative action to 
                                prevent any further, or to remedy any 
                                existing, violation.
                            ``(ii) Effect of order.--Any temporary 
                        order issued under this subparagraph shall take 
                        effect upon service.
                    ``(B) Effective period of temporary order.--A 
                temporary order issued under subparagraph (A) shall 
                remain effective and enforceable, pending the 
                completion of an administrative proceeding pursuant to 
                subsection (b)(1) in connection with the notice of 
                charges--
                            ``(i) until such time as the Corporation 
                        shall dismiss the charges specified in such 
                        notice; or
                            ``(ii) if a cease-and-desist order is 
                        issued against such person, until the effective 
                        date of such order.
                    ``(C) Civil money penalties.--Violations of section 
                18(a)(4) shall be subject to civil money penalties as 
                set forth in subsection (i) in an amount not to exceed 
                $1,000,000 for each day during which the violation 
                occurs or continues.''.
    (c) Technical and Conforming Amendments.--
            (1) Section 18(a)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1828(a)) is amended--
                    (A) in the 1st sentence by striking ``of this 
                subsection'' and inserting ``of paragraphs (1) and 
                (2)'';
                    (B) by striking the 2nd sentence; and
                    (C) in the 3rd sentence, by striking ``of this 
                subsection'' and inserting ``of paragraphs (1) and 
                (2)''.
            (2) The heading for subsection (a) of section 18 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1828(a)) is amended by 
        striking ``Insurance logo.--'' and inserting ``Representations 
        of deposit insurance.--''.

SEC. 613. COMPENSATION OF FEDERAL HOME LOAN BANK DIRECTORS.

    Section 7(i) of the Federal Home Loan Bank Act (12 U.S.C. 1427(i)) 
is amended to read as follows:
    ``(i) Directors' Compensation.--
            ``(1) In general.--Each Federal home loan bank may pay the 
        directors on the board of directors of the bank reasonable 
        compensation for the time required of such directors, and 
        reasonable expenses incurred by the directors, in connection 
        with service on the board of directors, in accordance with 
        resolutions adopted by the board of directors and subject to 
        the approval of the board.
            ``(2) Annual report by the board.--Information regarding 
        compensation and expenses paid by the Federal home loan banks 
        to the directors on the boards of directors of the banks shall 
        be included in the annual report submitted to the Congress by 
        the Board pursuant to section 2B(d).''.

SEC. 614. EXTENSION OF TERMS OF FEDERAL HOME LOAN BANK DIRECTORS.

    (a) In General.--Section 7(d) of the Federal Home Loan Bank Act (12 
U.S.C. 1427(d)) is amended--
            (1) in the first sentence, by striking ``3 years'' and 
        inserting ``4 years''; and
            (2) in the 2nd sentence--
                    (A) by striking ``Federal Home Loan Bank System 
                Modernization Act of 1999'' and inserting ``Financial 
                Services Regulatory Relief Act of 2003''; and
                    (B) by striking ``1/3'' and inserting ``1/4''.
    (b) Prospective Application.--The amendment made by subsection (a) 
shall not apply to the term of office in which any director of a 
Federal home loan bank is serving as of the date of the enactment of 
this Act, including any director elected or appointed to fill a vacancy 
in any such term of office.

SEC. 615. BIENNIAL REPORTS ON THE STATUS OF AGENCY EMPLOYMENT OF 
              MINORITIES AND WOMEN.

    (a) In General.--Before December 31, 2003, and the end of each 2-
year period beginning after such date, each Federal banking agency 
shall submit a report to the Congress on the status of the employment 
by the agency of minority individuals and women.
    (b) Factors To Be Included.--The report shall include a detailed 
assessment of each of the following:
            (1) The extent of hiring of minority individuals and women 
        by the agency as of the time the report is prepared.
            (2) The successes achieved and challenges faced by the 
        agency in operating minority and women outreach programs.
            (3) Challenges the agency may face in finding qualified 
        minority individual and women applicants.
            (4) Such other information, findings, and conclusions, and 
        recommendations for legislative or agency action, as the agency 
        may determine to be appropriate to include in the report.
    (c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Federal banking agency.--The term ``Federal banking 
        agency''--
                    (A) has the same meaning as in section 3(z) of the 
                Federal Deposit Insurance Act; and
                    (B) includes the National Credit Union 
                Administration.
            (2) Minority.--The term ``minority'' has the same meaning 
        as in section 1204(c)(3) of the Financial Institutions Reform, 
        Recovery, and Enforcement Act of 1989.

SEC. 616. COORDINATION OF STATE EXAMINATION AUTHORITY.

    Section 10(h) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(h)) is amended to read as follows:
    ``(h) Coordination of Examination Authority.--
            ``(1) In general.--The appropriate State bank supervisor of 
        the home State of an insured State bank has authority to 
        examine and supervise the bank. The State bank supervisor of 
        the home State of an insured State bank shall exercise its 
        authority to supervise and examine the branches of the bank in 
        a host State in accordance with the terms of any applicable 
        cooperative agreement between the home State bank supervisor 
        and the State bank supervisor of the relevant host State. 
        Except as expressly provided in a cooperative agreement between 
        the State bank supervisors of the home State and host State(s) 
        of an insured State bank, only the State bank supervisor of the 
        home State of an insured State bank may levy or charge State 
        supervisory fees on the bank.
            ``(2) Host state examination.--With respect to a branch 
        operated in a host State by an out-of-State insured State bank 
        that resulted from an interstate merger transaction approved 
        under section 44 or that was established in such State pursuant 
        to section 5155(g) of the Revised Statutes, the third 
        undesignated paragraph of section 9 of the Federal Reserve Act 
        or section 18(d)(4) of this Act, the appropriate State bank 
        supervisor of such host State may--
                    ``(A) with written notice to the State bank 
                supervisor of the bank's home State and subject to the 
                terms of any applicable cooperative agreement with the 
                State bank supervisor of such home State, examine such 
                branch for the purpose of determining compliance with 
                host State laws that are applicable pursuant to section 
                24(j) of this Act, including those that govern 
                community reinvestment, fair lending, and consumer 
                protection; and
                    ``(B) if expressly permitted under and subject to 
                the terms of a cooperative agreement with the State 
                bank supervisor of the bank's home State or if such 
                out-of-State insured State bank has been determined to 
                be in a troubled condition by either the State bank 
                supervisor of the bank's home State or the bank's 
                appropriate Federal banking agency, participate in the 
                examination of the bank by the State bank supervisor of 
                the bank's home State to ascertain that the activities 
                of the branch in such host State are not conducted in 
                an unsafe or unsound manner. The State bank supervisor 
                of the home State of an insured State bank shall notify 
                the State bank supervisor of each host State of the 
                bank if there has been a final determination that the 
                bank is in a troubled condition. The State bank 
                supervisor of the bank's home State shall provide such 
                notice as soon as reasonably possible but in all cases 
                within 15 business days after the State bank supervisor 
                has made such final determination or has received 
                written notification of such final determination.
            ``(3) Host state enforcement.--If the State bank supervisor 
        of a host State determines that a branch of an out-of-State 
        State insured State bank is violating any law of the host State 
        that is applicable to such branch pursuant to section 24(j) of 
        this Act, including a law that governs community reinvestment, 
        fair lending, or consumer protection, the State bank supervisor 
        of the host State or, to the extent authorized by the law of 
        the host State, a host State law enforcement officer may, with 
        written notice to the State bank supervisor of the bank's home 
        State and subject to the terms of any applicable cooperative 
agreement with the State bank supervisor of the bank's home State, 
undertake such enforcement actions and proceedings as would be 
permitted under the law of the host State as if the branch were a bank 
chartered by that host State.
            ``(4) Cooperative agreement.--The State bank supervisors 
        from 2 or more States may enter into cooperative agreements to 
        facilitate State regulatory supervision of State banks, 
        including cooperative agreements relating to the coordination 
        of examinations and joint participation in examinations. For 
        purposes of this subsection (h), the term ``cooperative 
        agreement'' means a written agreement that is signed by the 
        home State bank supervisor and host State bank supervisor to 
        facilitate State regulatory supervision of State banks and 
        includes nationwide or multi-state cooperative agreements and 
        cooperative agreements solely between the home State and host 
        State. Except for State bank supervisors, no provision of this 
        subsection (h) relating to such cooperative agreements shall be 
        construed as limiting in any way the authority of home and host 
        State law enforcement officers, regulatory supervisors, or 
        other officials that have not signed such cooperative 
        agreements to enforce host State laws that are applicable to a 
        branch of an out-of-State insured State bank located in the 
        host State pursuant to section 24(j) of this Act.
            ``(5) Federal regulatory authority.--No provision of this 
        subsection shall be construed as limiting in any way the 
        authority of any Federal banking agency.
            ``(6) State taxation authority not affected.--No provision 
        of this subsection (h) shall be construed as affecting the 
        authority of any State or political subdivision of any State to 
        adopt, apply, or administer any tax or method of taxation to 
        any bank, bank holding company, or foreign bank, or any 
        affiliate of any bank, bank holding company, or foreign bank, 
        to the extent such tax or tax method is otherwise permissible 
        by or under the Constitution of the United States or other 
        Federal law.
            ``(7) Definitions.--For purpose of this section, the 
        following definition shall apply:
                    ``(A) The terms `host State', `home State', and 
                `out-of-State bank' have the same meanings as in 
                section 44(g).
                    ``(B) The term `State supervisory fees' means 
                assessments, examination fees, branch fees, license 
                fees, and all other fees that are levied or charged by 
                a State bank supervisor directly upon an insured State 
                bank or upon branches of an insured State bank.
                    ``(C) Solely for purposes of subparagraph (2)(B) of 
                this subsection (h), an insured State bank has been 
                determined to be in `troubled condition' if the bank--
                            ``(i) has a composite rating, as determined 
                        in its most recent report of examination, of 4 
                        or 5 under the Uniform Financial Institutions 
                        Ratings System (UFIRS); or
                            ``(ii) is subject to a proceeding initiated 
                        by the Corporation for termination or 
                        suspension of deposit insurance; or
                            ``(iii) is subject to a proceeding 
                        initiated by the State bank supervisor of the 
                        bank's home State to vacate, revoke, or 
                        terminate the charter of the bank, or to 
                        liquidate the bank, or to appoint a receiver 
                        for the bank.
                    ``(D) For the purposes of paragraph (2)(B), the 
                term `final determination' means the transmittal of a 
                Report of Examination to the bank or transmittal of 
                official notice of proceedings to the bank.''.

                  TITLE VII--BUSINESS CHECKING FREEDOM

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Business Checking Freedom Act of 
2004''.

SEC. 702. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL 
              BUSINESSES.

    (a) 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 permit the owner of any deposit or account which is a 
deposit or account on which interest or dividends are paid and is not a 
deposit or account described in subsection (a)(2) to make up to 24 
transfers per month (or such greater number as the Board of Governors 
of the Federal Reserve System may determine by rule or order), for any 
purpose, to another account of the owner in the same institution. An 
account offered pursuant to this subsection shall be considered a 
transaction account for purposes of section 19 of the Federal Reserve 
Act unless the Board of Governors of the Federal Reserve System 
determines otherwise.''.
    (b) Effective at the end of the 2-year period beginning on the date 
of the enactment of this Act, section 2 of Public Law 93-100 (12 U.S.C. 
1832) is amended--
            (1) in subsection (a)(1), by striking ``but subject to 
        paragraph (2)'';
            (2) by striking paragraph (2) of subsection (a) and 
        inserting the following new paragraph:
            ``(2) No provision of this section may be construed as 
        conferring the authority to offer demand deposit accounts to 
        any institution that is prohibited by law from offering demand 
        deposit accounts.''; and
            (3) in subsection (b) (as added by subsection (a) of this 
        section) by striking ``and is not a deposit or account 
        described in subsection (a)(2)''.

SEC. 703. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.

    (a) Repeal of Prohibition on Payment of Interest on Demand 
Deposits.--
            (1) Federal reserve act.--Section 19(i) of the Federal 
        Reserve Act (12 U.S.C. 371a) is amended to read as follows:
    ``(i) [Repealed]''.
            (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''.
            (3) 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) [Repealed]''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect at the end of the 2-year period beginning on the date of 
the enactment of this Act.

SEC. 704. 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 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 whose behalf 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)(A), in a 
                        Federal reserve bank by any such entity on 
                        behalf of depository institutions.
                    ``(C) Depository institutions defined.--For 
                purposes of this paragraph, the term `depository 
                institution', in addition to the institutions described 
                in paragraph (1)(A), includes any trust company, 
                corporation organized under section 25A or having an 
                agreement with the Board under section 25, or any 
                branch or agency of a foreign bank (as defined in 
                section 1(b) of the International Banking Act of 
                1978).''.
    (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) Consumer Banking Costs Assessment.--
            (1) In general.--The Federal Reserve Act (12 U.S.C. 221 et 
        seq.) is amended--
                    (A) by redesignating sections 30 and 31 as sections 
                31 and 32, respectively; and
                    (B) by inserting after section 29 the following new 
                section:

``SEC. 30. SURVEY OF BANK FEES AND SERVICES.

    ``(a) Annual Survey Required.--The Board of Governors of the 
Federal Reserve System shall obtain annually a sample, which is 
representative by type and size of the institution (including small 
institutions) and geographic location, of the following retail banking 
services and products provided by insured depository institutions and 
insured credit unions (along with related fees and minimum balances):
            ``(1) Checking and other transaction accounts.
            ``(2) Negotiable order of withdrawal and savings accounts.
            ``(3) Automated teller machine transactions.
            ``(4) Other electronic transactions.
    ``(b) Minimum Survey Requirement.--The annual survey described in 
subsection (a) shall meet the following minimum requirements:
            ``(1) Checking and other transaction accounts.--Data on 
        checking and transaction accounts shall include, at a minimum, 
        the following:
                    ``(A) Monthly and annual fees and minimum balances 
                to avoid such fees.
                    ``(B) Minimum opening balances.
                    ``(C) Check processing fees.
                    ``(D) Check printing fees.
                    ``(E) Balance inquiry fees.
                    ``(F) Fees imposed for using a teller or other 
                institution employee.
                    ``(G) Stop payment order fees.
                    ``(H) Nonsufficient fund fees.
                    ``(I) Overdraft fees.
                    ``(J) Deposit items returned fees.
                    ``(K) Availability of no-cost or low-cost accounts 
                for consumers who maintain low balances.
            ``(2) Negotiable order of withdrawal accounts and savings 
        accounts.--Data on negotiable order of withdrawal accounts and 
        savings accounts shall include, at a minimum, the following:
                    ``(A) Monthly and annual fees and minimum balances 
                to avoid such fees.
                    ``(B) Minimum opening balances.
                    ``(C) Rate at which interest is paid to consumers.
                    ``(D) Check processing fees for negotiable order of 
                withdrawal accounts.
                    ``(E) Fees imposed for using a teller or other 
                institution employee.
                    ``(F) Availability of no-cost or low-cost accounts 
                for consumers who maintain low balances.
            ``(3) Automated teller transactions.--Data on automated 
        teller machine transactions shall include, at a minimum, the 
        following:
                    ``(A) Monthly and annual fees.
                    ``(B) Card fees.
                    ``(C) Fees charged to customers for withdrawals, 
                deposits, and balance inquiries through institution-
                owned machines.
                    ``(D) Fees charged to customers for withdrawals, 
                deposits, and balance inquiries through machines owned 
                by others.
                    ``(E) Fees charged to noncustomers for withdrawals, 
                deposits, and balance inquiries through institution-
                owned machines.
                    ``(F) Point-of-sale transaction fees.
            ``(4) Other electronic transactions.--Data on other 
        electronic transactions shall include, at a minimum, the 
        following:
                    ``(A) Wire transfer fees.
                    ``(B) Fees related to payments made over the 
                Internet or through other electronic means.
            ``(5) Other fees and charges.--Data on any other fees and 
        charges that the Board of Governors of the Federal Reserve 
        System determines to be appropriate to meet the purposes of 
        this section.
            ``(6) Federal reserve board authority.--The Board of 
        Governors of the Federal Reserve System may cease the 
        collection of information with regard to any particular fee or 
        charge specified in this subsection if the Board makes a 
        determination that, on the basis of changing practices in the 
        financial services industry, the collection of such information 
        is no longer necessary to accomplish the purposes of this 
        section.
    ``(c) Annual Report to Congress Required.--
            ``(1) Preparation.--The Board of Governors of the Federal 
        Reserve System shall prepare a report of the results of each 
        survey conducted pursuant to subsections (a) and (b) of this 
        section and section 136(b)(1) of the Consumer Credit Protection 
        Act.
            ``(2) Contents of the report.--In addition to the data 
        required to be collected pursuant to subsections (a) and (b), 
        each report prepared pursuant to paragraph (1) shall include a 
        description of any discernible trend, in the Nation as a whole, 
        in a representative sample of the 50 States (selected with due 
        regard for regional differences), and in each consolidated 
        metropolitan statistical area (as defined by the Director of 
        the Office of Management and Budget), in the cost and 
        availability of the retail banking services, including those 
        described in subsections (a) and (b) (including related fees 
        and minimum balances), that delineates differences between 
        institutions on the basis of the type of institution and the 
        size of the institution, between large and small institutions 
        of the same type, and any engagement of the institution in 
        multistate activity.
            ``(3) Submission to congress.--The Board of Governors of 
        the Federal Reserve System shall submit an annual report to the 
        Congress not later than June 1, 2005, and not later than June 1 
        of each subsequent year.
    ``(d) Definitions.--For purposes of this section, the term `insured 
depository institution' has the meaning given such term in section 3 of 
the Federal Deposit Insurance Act, and the term `insured credit union' 
has the meaning given such term in section 101 of the Federal Credit 
Union Act.''.
            (2) Conforming amendment.--
                    (A) In general.--Paragraph (1) of section 136(b) of 
                the Truth in Lending Act (15 U.S.C. 1646(b)(1)) is 
                amended to read as follows:
            ``(1) Collection required.--The Board shall collect, on a 
        semiannual basis, from a broad sample of financial institutions 
        which offer credit card services, credit card price and 
        availability information including--
                    ``(A) the information required to be disclosed 
                under section 127(c) of this chapter;
                    ``(B) the average total amount of finance charges 
                paid by consumers; and
                    ``(C) the following credit card rates and fees:
                            ``(i) Application fees.
                            ``(ii) Annual percentage rates for cash 
                        advances and balance transfers.
                            ``(iii) Maximum annual percentage rate that 
                        may be charged when an account is in default.
                            ``(iv) Fees for the use of convenience 
                        checks.
                            ``(v) Fees for balance transfers.
                            ``(vi) Fees for foreign currency 
                        conversions.''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect on January 1, 2004.
            (3) Repeal of other report provisions.--Section 1002 of 
        Financial Institutions Reform, Recovery, and Enforcement Act of 
        1989 and section 108 of the Riegle-Neal Interstate Banking and 
        Branching Efficiency Act of 1994 are hereby repealed.
    (d) 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. 705. INCREASED FEDERAL RESERVE BOARD FLEXIBILITY IN SETTING 
              RESERVE REQUIREMENTS.

    Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C. 
461(b)(2)(A)) is amended--
            (1) in clause (i), by striking ``the ratio of 3 per 
        centum'' and inserting ``a ratio not greater than 3 percent 
        (and which may be zero)''; and
            (2) in clause (ii), by striking ``and not less than 8 per 
        centum,'' and inserting ``(and which may be zero),''.

SEC. 706. TRANSFER OF FEDERAL RESERVE SURPLUSES.

    (a) In General.--Section 7(b) of the Federal Reserve Act (12 U.S.C. 
289(b)) is amended by adding at the end the following new paragraph:
            ``(4) Additional transfers to cover interest payments for 
        fiscal years 2003 through 2007.--
                    ``(A) In general.--In addition to the amounts 
                required to be transferred from the surplus funds of 
                the Federal reserve banks pursuant to subsection 
                (a)(3), the Federal reserve banks shall transfer from 
                such surplus funds to the Board of Governors of the 
                Federal Reserve System for transfer to the Secretary of 
                the Treasury for deposit in the general fund of the 
                Treasury, such sums as are necessary to equal the net 
                cost of section 19(b)(12) in each of the fiscal years 
                2003 through 2007.
                    ``(B) Allocation by federal reserve board.--Of the 
                total amount required to be paid by the Federal reserve 
                banks under subparagraph (A) for fiscal years 2003 
                through 2007, the Board of Governors of the Federal 
                Reserve System shall determine the amount each such 
                bank shall pay in such fiscal year.
                    ``(C) Replenishment of surplus fund prohibited.--
                During fiscal years 2003 through 2007, no Federal 
                reserve bank may replenish such bank's surplus fund by 
                the amount of any transfer by such bank under 
                subparagraph (A).''.
    (b) Technical and Conforming Amendment.--Section 7(a) of the 
Federal Reserve Act (12 U.S.C. 289(a)) is amended by adding at the end 
the following new paragraph:
            ``(3) Payment to treasury.--During fiscal years 2003 
        through 2007, any amount in the surplus fund of any Federal 
        reserve bank in excess of the amount equal to 3 percent of the 
        paid-in capital and surplus of the member banks of such bank 
        shall be transferred to the Secretary of the Treasury for 
        deposit in the general fund of the Treasury.''.

SEC. 707. RULE OF CONSTRUCTION.

    In the case of an escrow account maintained at a depository 
institution in connection with a real estate transaction--
            (1) the absorption, by the depository institution, of 
        expenses incidental to providing a normal banking service with 
        respect to such escrow account;
            (2) the forbearance, by the depository institution, from 
        charging a fee for providing any such banking function; and
            (3) any benefit which may accrue to the holder or the 
        beneficiary of such escrow account as a result of an action of 
        the depository institution described in subparagraph (1) or (2) 
        or similar in nature to such action,
shall not be treated as the payment or receipt of interest for purposes 
of this Act and any provision of Public Law 93-100, the Federal Reserve 
Act, the Home Owners' Loan Act, or the Federal Deposit Insurance Act 
relating to the payment of interest on accounts or deposits at 
depository institutions, provided, however, that nothing herein shall 
be construed so as to require a depository institution that maintains 
an escrow account in connection with a real estate transaction to pay 
interest on such escrow account or to prohibit such institution from 
paying interest on such escrow account. Nor shall anything herein be 
construed to preempt the provisions of law of any State dealing with 
the payment of interest on escrow accounts maintained in connection 
with real estate transactions.

             TITLE VIII--CLERICAL AND TECHNICAL AMENDMENTS

SEC. 801. CLERICAL AMENDMENTS TO THE HOME OWNERS' LOAN ACT.

    (a) Amendment to Table of Contents.--The table of contents in 
section 1 of the Home Owners' Loan Act (12 U.S.C. 1461) is amended by 
striking the items relating to sections 5 and 6 and inserting the 
following new items:

``Sec. 5. Savings associations.
``Sec. 6. [Repealed.]''.
    (b) Clerical Amendments to Headings.--
            (1) The heading for section 4(a) of the Home Owners' Loan 
        Act (12 U.S.C. 1463(a)) is amended by striking ``(a) Federal 
        Savings Associations.--'' and inserting ``(a) General 
        Responsibilities of the Director.--''.
            (2) The section heading for section 5 of the Home Owners' 
        Loan Act (12 U.S.C. 1464) is amended to read as follows:

``SEC. 5. SAVINGS ASSOCIATIONS.''.

SEC. 802. TECHNICAL CORRECTIONS TO THE FEDERAL CREDIT UNION ACT.

    The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended as 
follows:
            (1) In section 101(3), strike ``and'' after the semicolon.
            (2) In section 101(5), strike the terms ``account account'' 
        and ``account accounts'' each place any such term appears and 
        insert ``account''.
            (3) In section 107(a)(5)(E) (as so designated by section 
        303 of this Act), strike the period at the end and insert a 
        semicolon.
            (4) In paragraphs (6) and (7) of section 107(a) (as so 
        designated by section 303 of this Act), strike the period at 
        the end and insert a semicolon.
            (5) In section 107(a)(7)(D) (as so designated by section 
        303 of this Act), strike ``the Federal Savings and Loan 
        Insurance Corporation or''.
            (6) In section 107(a)(7)(E) (as so designated by section 
        303 of this Act), strike ``the Federal Home Loan Bank Board,'' 
        and insert ``the Federal Housing Finance Board,''.
            (7) In section 107(a)(9) (as so designated by section 303 
        of this Act), strike ``subchapter III'' and insert ``title 
        III''.
            (8) In section 107(a)(13) (as so designated by section 303 
        of this Act), strike the ``and'' after the semicolon at the 
        end.
            (9) In section 109(c)(2)(A)(i), strike ``(12 U.S.C. 
        4703(16))''.
            (10) In section 120(h), strike ``under the Act approved 
        July 30, 1947 (6 U.S.C., secs. 6-13),'' and insert ``chapter 93 
        of title 31, United States Code,''.
            (11) In section 201(b)(5), strike ``section 116 of''.
            (12) In section 202(h)(3), strike ``section 207(c)(1)'' and 
        insert ``section 207(k)(1)''.
            (13) In section 204(b), strike ``such others powers'' and 
        insert ``such other powers''.
            (14) In section 206(e)(3)(D), strike ``and'' after the 
        semicolon at the end.
            (15) In section 206(f)(1), strike ``subsection (e)(3)(B)'' 
        and insert ``subsection (e)(3)''.
            (16) In section 206(g)(7)(D), strike ``and subsection 
        (1)''.
            (17) In section 206(t)(2)(B), insert ``regulations'' after 
        ``as defined in''.
            (18) In section 206(t)(2)(C), strike ``material affect'' 
        and insert ``material effect''.
            (19) In section 206(t)(4)(A)(ii)(II), strike ``or'' after 
        the semicolon at the end.
            (20) In section 206A(a)(2)(A), strike ``regulator agency'' 
        and insert ``regulatory agency''.
            (21) In section 207(c)(5)(B)(i)(I), insert ``and'' after 
        the semicolon at the end.
            (22) In section 207(c)(8)(D)(ii)(I), insert a closing 
        parenthesis after ``Act of 1934''.
            (23) In the heading for subparagraph (A) of section 
        207(d)(3), strike ``to'' and insert ``with''.
            (24) In section 207(f)(3)(A), strike ``category or 
        claimants'' and insert ``category of claimants''.
            (25) In section 209(a)(8), strike the period at the end and 
        insert a semicolon.
            (26) In section 216(n), insert ``any action'' before ``that 
        is required''.
            (27) In section 304(b)(3), strike ``the affairs or such 
        credit union'' and insert ``the affairs of such credit union''.
            (28) In section 310, strike ``section 102(e)'' and insert 
        ``section 102(d)''.

SEC. 803. OTHER TECHNICAL CORRECTIONS.

    (a) Section 1306 of title 18, United States Code, is amended by 
striking ``5136A'' and inserting ``5136B''.
    (b) Section 5239 of the Revised Statutes of the United States (12 
U.S.C. 93) is amended by redesignating the second of the 2 subsections 
designated as subsection (d) (as added by section 331(b)(3) of the 
Riegle Community Development and Regulatory Improvement Act of 1994) as 
subsection (e).

SEC. 804. REPEAL OF OBSOLETE PROVISIONS OF THE BANK HOLDING COMPANY ACT 
              OF 1956.

      (a) In General.--Section 2 of the Bank Holding Company Act of 
1956 (12 U.S.C. 1841) is amended--
            (1) in subsection (c)(2), by striking subparagraphs (I) and 
        (J); and
            (2) by striking subsection (m) and inserting the following 
        new subsection:
    ``(m) [Repealed]''.
    (b) Technical and Conforming Amendments.--Paragraphs (1) and (2) of 
section 4(h) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(h)) are each amended by striking ``(G), (H), (I), or (J) of 
section 2(c)(2)'' and inserting ``(G), or (H) of section 2(c)(2)''.

            Passed the House of Representatives March 18, 2004.

            Attest:

                                                                 Clerk.