[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1375 Referred in Senate (RFS)]
2d Session
H. R. 1375
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 22, 2004
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
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:
JEFF TRANDAHL,
Clerk.