[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3171 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3171
To help stabilize and restore the economy by providing for greater
access to credit for the underbanked, the unbanked, and consumers with
low credit scores through the establishment of bridging bank depository
institutions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 10, 2009
Mr. Baca introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To help stabilize and restore the economy by providing for greater
access to credit for the underbanked, the unbanked, and consumers with
low credit scores through the establishment of bridging bank 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.
This Act may be cited as the ``Bridging Bank to Recovery Act of
2009''.
SEC. 2. FINDINGS AND PURPOSES.
(1) Findings.--The Congress finds that--
(A) the current financial crisis has had a
disproportionate impact on the underbanked, the
unbanked and consumers with credit scores at or below
660;
(B) the underbanked, the unbanked and consumers
with credit scores at or below 660 already have extreme
difficulty gaining access to comprehensive banking
services, including access to appropriate credit;
(C) the underbanked, the unbanked, consumers with
credit scores at or below 660 and the United States
economy would benefit from programs that provide a
means by which the underbanked, the unbanked and
consumers with credit scores at or below 660 could be
transitioned into mainstream banking;
(D) developing programs to assist consumers with
credit scores at or below 660 rehabilitate their credit
scores and gain a greater understanding of the credit
process would benefit this consumer group and assist in
stabilizing and restoring the United States economy;
(E) assisting consumers with credit scores at or
below 660 stay in their homes and avoid foreclosures
which would significantly reduce the number of
foreclosures and thereby assist in stabilizing and
restoring the current housing market;
(F) while many traditional banks have programs
targeted towards transitioning the underbanked and the
unbanked into mainstream banking, only a limited number
of banks have programs designed to assist consumers
with credit scores at or below 660;
(G) consumers with credit scores at or below 660
have substantially increased due to economic
conditions, and the capacity of these consumers to
manage their financial obligations has worsened;
(H) there is a need to create a financial
institution whose primary purpose is to assist the
underbanked, the unbanked and consumers with credit
scores at or below 660; and
(I) the new financial institution could become a
bridge by which the underbanked, the unbanked and
consumers with credit scores at or below 660 gain
greater access to credit and other financial services
and build or rebuild their credit history and credit
scores in order to become a more integral part of the
financial mainstream and contribute more to the
economic growth of the United States.
(2) Purpose.--The purpose of this Act is to create a
bridging bank depository institution as a special purpose
financial institution primarily dedicated to serving the
underbanked and the unbanked consumers and consumers with
credit scores at or below 680, enabling those consumers to more
easily transition to or back to the financial mainstream
through a program of comprehensive banking services, including,
but not limited to, access to credit products, financial and
credit training, loan restructurings and other tailored
financial products and services designed to meet the needs of
such consumers.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Appropriate banking agency.--The term ``appropriate
banking agency'' means any appropriate Federal banking agency
and State bank supervisor (as such terms are defined in section
3 of the Federal Deposit Insurance Act) and, in the case of any
insured credit union, the National Credit Union Administration
Board.
(2) Bridging bank depository institution.--
(A) In general.--The term ``bridging bank
depository institution'' means a de novo bank chartered
by the Comptroller of the Currency, a de novo savings
association chartered by the Director of the Office of
Thrift Supervision, a de novo insured credit union
chartered by the National Credit Union Administration
or a de novo bank chartered by a State bank supervisor
created pursuant to this Act that--
(i) has a primary mission of providing a
comprehensive array of financial services to
the underbanked, the unbanked and consumers
with credit scores at or below 680 in order to
provide a vehicle to transition consumers into
the financial mainstream;
(ii) serves as a vehicle for providing
access to credit products predominately to
consumers with a credit score at or below 680;
(iii) provides financial and credit
training, loan restructurings and other
tailored financial products and services
designed to meet their needs;
(iv) provides a full range of financial
products and services (including, but not
limited to, traditional retail products such as
savings and debit products, credit products
such as mortgage loans, automobile loans,
credit cards and bill payment services as well
as specialized services such as home repair,
weatherization and energy efficient upgrades)
to meet the needs of the underbanked, the
unbanked and consumers with credit scores at or
below 680;
(v) provides programs designed to assure
financial literacy and product-based,
individualized financial education such as
budgeting, financial planning, the mortgage
process and financial disclosures, the credit
scoring process, communications with financial
institutions and rights of obligations of
borrowers and lenders;
(vi) provides savings and other deposits
and deposit products to the underbanked, the
unbanked, consumers with a credit score of 680
or below and a broader range of customers the
interest on which is free from Federal income
tax; and
(vii) has limits placed on its profits
equal to a 20 percent return on equity (on a
generally accepted accounting principles basis)
per annum, and returns excess profits to
decrease the costs of loans and other financial
products and services for the underbanked, the
unbanked and consumers with credit scores at or
below 680.
(B) Exceptions.--No entity may be treated as a
bridging bank depository institution for purposes of
this Act unless the entity is--
(i) is either an insured depository
institution or an insured credit union; and
(ii) is a member of a Federal Reserve bank
or is a depository institution (as defined in
section 19(b)(1)(A) of the Federal Reserve
Act).
(3) Included terms.--The terms ``insured depository
institution'', ``national bank'', ``savings association'', and
``State bank'' have the same meaning as in section 3 of the
Federal Deposit Insurance Act.
(4) Insured credit union.--The term ``insured credit
union'' has the same meaning as in section 101(7) of the
Federal Credit Union Act.
(5) Unbanked.--The term ``unbanked'' means individuals or
families who do not have an account with an insured depository
institution or an insured credit union or a transaction account
with a money market mutual fund or brokerage firm.
(6) Underbanked.--The term ``underbanked'' means
individuals or families who have a deposit account with an
insured depository institution or an insured credit union and
have limited or no ability to access nondepository services
from insured depository institutions or insured credit unions.
SEC. 4. CHARTERING OF BRIDGING BANK DEPOSITORY INSTITUTIONS.
(a) De Novo Bridging Bank.--Only de novo bridging bank depository
institutions may be created pursuant to this Act. A de novo bridging
bank depository institution may become a bridging bank depository
institution by obtaining a charter as such from its appropriate banking
agency.
(b) Licensing Requirements.--Any person desiring to establish a
bridging bank depository institution shall submit an application and
obtain prior appropriate banking agency approval.
(c) Scope.--This section describes the procedures and requirements
governing appropriate banking agency review and approval of an
application to establish a bridging bank depository institution.
(d) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Control.--The term ``control'' has the same meaning as
in section 2 of the Bank Holding Company Act.
(2) Final approval.--The term ``final approval'', in
connection with a bridging bank depository institution, means
the appropriate banking agency action issuing a charter
certificate and authorizing a bridging bank depository
institution to open for business.
(3) Holding company.--The term ``holding company'' means
any company that controls or proposes to control a bridging
bank depository institution whether or not the company is a
bank holding company under the Bank Holding Company Act of
1956.
(4) Organizing group.--The term ``organizing group'' or
``organizer'' means 5 or more persons acting on their own
behalf who apply to the appropriate banking agency for a
bridging bank depository institution charter.
(5) Preliminary approval.--The term ``preliminary
approval'' means a decision by the appropriate banking agency
permitting an organizing group to go forward with the
organization of the proposed bridging bank depository
institution.
(6) Well capitalized.--The term ``well capitalized'', when
used in connection with a bridging bank depository institution
means the bridging bank depository institution--
(A) has a total risk-based capital ratio of 10
percent or greater;
(B) has a Tier 1 risk-based capital ratio of 6
percent or greater;
(C) has a leverage ratio of 5 percent or greater;
and
(D) is not subject to any written agreement, order,
capital directive or prompt corrective action directive
from an appropriate banking agency.
(e) Statutory Requirements.--
(1) In general.--The name of a proposed bridging bank
depository institution shall include the word ``bridge'' or
``bridging''. In determining whether to approve an application
to establish a bridging bank depository institution, the
appropriate banking agency shall verify that the proposed
bridging bank depository institution has complied with the
requirements contained in this chapter, including the following
requirements. A bridging bank depository institution shall--
(A) draft and file articles of association,
articles of incorporation, or other appropriate
organizational documents with the appropriate banking
agency;
(B) draft and file an organization certificate
containing specified information with the appropriate
banking agency;
(C) ensure that all capital stock is paid in prior
to commencing business;
(D) have at least five elected directors; and
(E) submit to the appropriate banking agency for
approval a business plan which, among other things,
provides in reasonable detail evidence of the
knowledge, understanding and experience of the board of
directors of the bridging bank depository institution
and the senior management of the bridging bank
depository institution of the unique underwriting
requirements not typically adequately addressed by
analytics and processes used for underwriting
extensions of credit for consumers with credit scores
at or above 680 for initially extending credit to the
underbanked, the unbanked and consumers with credit
scores at or below 680, and ongoing account management
practices that take into account the attributes of
risks specific to a consumers group which has
derogatory events in its credit history and is likely
to have subsequent derogatory events in its efforts to
graduate to a credit band with a higher credit score
and better credit profile.
(2) Community reinvestment act of 1977.--The appropriate
banking agency shall take into account a proposed bridging bank
depository institution's description of how it will meet its
Community Reinvestment Act of 1977 objectives in the same way
that a national bank is required to meet its Community
Reinvestment Act objectives.
(3) Graduation program.--The appropriate banking agency
shall take into account a proposed bridging bank depository
institution's program to develop and implement a phased
approach to moving consumers with credit scores at or below 680
from their current credit score into higher bands of credit
scores and the implementation of specialized policies and
procedures, practices and technology to encourage and support
the success of the customer Graduation Program. The Graduation
Program shall include an education component which provides in
reasonable detail what a consumer shall do to move from 1
credit scoring band to a higher credit scoring band, including
providing opportunities for the consumer to develop a favorable
credit history with the bridging bank depository institution.
(f) Policy.--
(1) In general.--The marketplace is normally the best
regulator of economic activity, and competition within the
marketplace promotes efficiency and better customer service.
Accordingly, the appropriate banking agency's policy shall be
to approve proposals to establish bridging bank depository
institutions that have a reasonable chance of success and that
will be operated in a safe and sound manner. It shall not be
the policy of the appropriate banking agency to ensure that a
proposal to establish a bridging bank depository institution is
without risk to the organizers or to protect existing
institutions from healthy competition from a new bridging bank
depository institution.
(2) Policy considerations.--In evaluating an application to
establish a bridging bank depository institution, the
appropriate banking agency shall consider whether the proposed
bridging bank depository institution--
(A) has organizers who are familiar with applicable
Federal and State banking laws and regulations, and the
credit and training needs of the underbanked, the
unbanked and consumers with credit scores at or below
680;
(B) has competent management, including a board of
directors, with ability and experience relevant to the
types of services to be provided, especially the
ability and experience to design and provide financial
services to the underbanked, the unbanked and consumers
with credit scores at or below 680;
(C) has minimum capital of at least $10,000,000 and
that is sufficient to support the projected volume and
type of banking business that focuses on the needs of
the underbanked, the unbanked and consumers with credit
scores at or below 680;
(D) can reasonably be expected to achieve and
maintain profitability within a reasonable time;
(E) will be operated in a safe and sound manner;
and
(F) will be well capitalized for the first three
years after opening for business.
(g) Additional Factors.--The appropriate banking agency may also
consider additional factors listed in section 6 of the Federal Deposit
Insurance Act, including the risk to the Deposit Insurance Fund, and
whether the proposed bridging bank depository institution's corporate
powers are consistent with the purposes of the Federal Deposit
Insurance Act and this Act.
(h) Appropriate Banking Agency Evaluation.--The appropriate banking
agency shall evaluate as a whole a proposed bridging bank depository
institution's organizing group and its business plan or operating plan.
An organizing group and its business plan or operating plan shall be
stronger in markets where economic conditions are marginal or
competition is intense.
(i) Organizing Group.--
(1) In general.--Strong organizing groups generally include
diverse business and financial interests and community
involvement. An organizing group shall have the experience,
competence, willingness, and ability to be active in directing
the proposed bridging bank depository institution's affairs in
a safe and sound manner. The bridging bank depository
institution's initial board of directors generally should be
comprised of many, if not all, of the organizers. The business
plan or operating plan and other information supplied in the
application shall demonstrate an organizing group's collective
ability to establish and operate a successful bridging bank
depository institution in the economic and competitive
conditions of the market to be served. Each organizer should be
knowledgeable about the business plan or operating plan.
(2) Management selection.--The initial board of directors
shall select competent senior executive officers before the
appropriate banking agency may grant final approval. As a
condition of the charter approval, the appropriate banking
agency shall have the right to object to and preclude the
hiring of any officer, or the appointment or election of any
director, for a 2-year period from the date the bridging bank
depository institution commences business.
(j) Financial Resources.--
(1) Each organizer shall have a history of responsibility,
personal honesty, and integrity. Personal wealth is not a
prerequisite to become an organizer or director of a bridging
bank depository institution.
(2) Any financial or other business arrangement, direct or
indirect, between the organizing group or other insider and the
proposed bridging bank depository institution shall be on
nonpreferential terms.
(k) Organizational Expenses.--Organizers are expected to contribute
time and expertise to the organization of the bridging bank depository
institution. Organizers should not bill excessive charges to the
bridging bank depository institution for professional and consulting
services or unduly rely upon these fees as a source of income.
(l) No Contingency Fees.--A proposed bridging bank depository
institution shall not pay any fee that is contingent upon an
appropriate banking agency decision. Organizational expenses for denied
applications are the sole responsibility of the organizing group.
(m) Business Plan or Operating Plan.--
(1) In general.--
(A) Submission required.--Organizers of a proposed
bridging bank depository institution shall submit a
business plan or operating plan that adequately
addresses the appropriate statutory and policy
considerations. The plan shall reflect sound banking
principles and demonstrate realistic assessments of
risk in light of economic and competitive conditions in
the market for serving the underbanked, the unbanked
and consumers with credit scores at or below 680.
(B) Offsetting deficiencies.--The appropriate
banking agency shall offset deficiencies in 1 factor by
strengths in 1 or more other factors so long as the
ability to serve the underbanked, the unbanked and
consumers with credit scores at or below 680 is the
most important factor and entitled to the greatest
weight.
(2) Earnings prospects.--The organizing group shall submit
pro forma balance sheets and income statements as part of the
business plan or operating plan.
(3) Management.--
(A) Evaluation of managerial ability.--The
organizing group shall include in the business plan or
operating plan information sufficient to permit the
appropriate banking agency to evaluate the overall
management ability of the organizing group, especially
the ability to provide financial services to the
underbanked, the unbanked, and consumers with credit
scores at or below 680.
(B) Agency objection to proposed officer or
director.--The organizing group may not hire an officer
or elect or appoint a director if the appropriate
banking agency objects to that person at any time prior
to the date the bridging bank depository institution
commences business.
(4) Capital.--A proposed bridging bank depository
institution shall have initial capital of at least $10,000,000.
(5) Community service.--
(A) The business plan or operating plan shall
indicate the organizing group's knowledge of and plans
for serving the underbanked, the unbanked and consumers
with credit scores at or below 680. The organizing
group shall evaluate the banking needs of the
underbanked, the unbanked and consumers with credit
scores at or below 680. The business plan or operating
plan shall demonstrate how the proposed bridging bank
depository institution responds to those needs
consistent with the safe and sound operation of the
bridging bank depository institution.
(B) As part of its business plan or operating plan,
the organizing group shall submit a statement that
demonstrates its plans to achieve Community
Reinvestment Act objectives.
(C) Because community support is important to the
long-term success of a bridging bank depository
institution, the organizing group shall include plans
for attracting and maintaining community support.
(6) Safety and soundness.--The business plan or operating
plan shall demonstrate that the organizing group is aware of,
and understands, Federal and State banking laws and
regulations, and safe and sound banking operations and
practices in the context of serving the needs of the
underbanked, the unbanked and consumers with credit scores at
or below 680.
(7) Procedures.--
(A) Prefiling meeting.--The appropriate banking
agency shall require a prefiling meeting with the
organizers of a proposed bridging bank depository
institution before the organizers file an application.
(B) Business plan or operating plan.--An organizing
group shall file a business plan or operating plan that
addresses the requirements of the appropriate banking
agency.
(C) Contact person.--The organizing group shall
designate a contact person to represent the organizing
group in all contacts with the appropriate banking
agency. The contact person shall be an organizer and
proposed director of the new bridging bank depository
institution or another person approved by the
appropriate banking agency.
(8) Decision notification.--The appropriate banking agency
shall notify the contact person in writing of its decision on
an application.
(9) Activities.--
(A) Establishment.--Before the appropriate banking
agency grants final approval, a proposed bridging bank
depository institution shall be established as a legal
entity. A proposed bridging bank depository institution
may offer and sell securities prior to appropriate
banking agency preliminary approval of the proposed
bridging bank depository institution's charter
application, provided that the proposed bridging bank
depository institution has filed articles of
association, articles of incorporation, or other
appropriate organizational documents, an organization
certificate, and a completed charter application and
the proposed bridging bank depository institution
complies with the securities offering regulations of
the Comptroller of the Currency, 12, Code of Federal
Regulations, 16 and any applicable State securities
law.
(B) Election of board.--In addition, the organizing
group shall elect a board of directors.
(C) Public offering.--For all capital obtained
through a public offering a proposed bridging bank
depository institution shall use an offering circular
that complies with the securities offering regulations
of the Comptroller of the Currency, 12, Code of Federal
Regulations, 16 and any applicable State securities
law.
(D) Capital.--A bridging bank depository
institution in organization shall raise its capital
before it commences business. Preliminary approval
expires if a bridging bank depository institution in
organization does not raise the required capital within
12 months from the date the appropriate banking agency
grants preliminary approval. Approval expires if the
bridging bank depository institution does not commence
business within 18 months from the date the appropriate
banking agency grants preliminary approval.
SEC. 5. LIMITATION ON POWERS OF APPROPRIATE BANKING AGENCY.
Notwithstanding any other law or regulation, no bridging bank
depository institution may be required to use risk weights or other
capital adequacy measures which make the bridging bank depository
institution unable to properly price its products and services or
otherwise serve the underbanked, the unbanked and consumers with credit
scores at or below 680, and no banking authority may require the use of
risk weights or capital adequacy measures for a bridging bank
depository institution that makes the bridging bank depository
institution uncompetitive, makes its products and services too
expensive for the underbanked, the unbanked or consumers with a credit
score at or below 680 or otherwise prevents the bridging bank
depository institution from serving the underbanked, the unbanked and
consumers with a credit score at or below 680. Neither the Federal
Deposit Insurance Corporation nor the National Credit Union
Administration Board shall discriminate in its insurance premium
charges against bridging bank depository institutions and shall charge
bridging bank depository institutions the same premium that it would
otherwise charge a traditional community bank or traditional credit
union, as appropriate, which does not serve the underbanked, the
unbanked or consumers with a credit score at 680 or below.
SEC. 6. COORDINATION AND PROMOTION OF THE COMMUNITY REINVESTMENT ACT OF
1977.
To strengthen the effectiveness of the Community Reinvestment Act
of 1977 and to encourage financial institutions subject to the
Community Reinvestment Act of 1977 to support the efforts of bridging
bank depository institutions, the appropriate banking agencies shall
grant the highest level of weighted Community Reinvestment Act of 1977
credit to financial institutions subject to such Act in each case, as
appropriate, under the lending test where a loan is made to a bridging
bank depository institution, under the investment test where an
investment is made in a bridging bank depository institution, under the
service test where a service is provided to a bridging bank depository
institution and under the community development test when a donation is
made to a bridging bank depository institution.
SEC. 7. ADDITIONAL POWERS OF A BRIDGING BANK DEPOSITORY INSTITUTION.
In addition to the powers granted herein and in any regulations
issued by the appropriate banking agency, each bridging bank depository
institution shall have all the powers otherwise applicable to a
national bank, if the bridging bank depository institution is chartered
by the Comptroller of the Currency, to a savings association, if the
bridging bank depository institution is chartered by the Director of
the Office of Thrift Supervision, to an insured credit union, if the
bridging bank depository institution is chartered by the National
Credit Union Administration, or to a State bank, if the bridging bank
depository institution is chartered by a State bank supervisor, and,
except as provided in this Act or in any regulations issued pursuant to
the authority granted in section 106, shall be subject to the
regulations otherwise applicable to such national bank, savings
association, insured credit union or State bank, as the case may be.
SEC. 8. REPORTS TO THE CONGRESS.
Before the expiration of the 120-day period beginning on the date
of the first issuance of a charter pursuant to this Act, and annually
thereafter, each appropriate Federal banking agency shall report to the
appropriate committees of the Congress, with respect to each such
period--
(1) an overview of actions taken by each such Federal
banking agency in furtherance of the purposes of this Act;
(2) an overview of actions taken by bridging bank
depository institutions to serve the needs of the underbanked,
the unbanked, and consumers with credit scores at or below 680;
(3) a description of the impact of the exercise of such
authority on the financial system, supported, to the extent
possible, by specific data;
(4) an analysis of the effectiveness of the Graduation
Program, including an analysis of any progress made from 1
credit scoring band to a higher credit scoring band and the
number of consumers who moved from 1 credit scoring band to a
higher credit scoring band;
(5) a description of challenges that remain in the
financial system for the underbanked, the unbanked, and
consumers with a credit score of 680 or below; and
(6) recommendations on additional actions that should be
taken to further the purposes of this Act.
SEC. 9. REGULATIONS.
(a) Regulations Required.--Before the end of the 180-day period
beginning on the date of the enactment of this Act, each appropriate
Federal banking agency, after consultation with each other appropriate
Federal banking agency, and public notice and an opportunity for
comment, shall prescribe regulations to carry out the purposes and
provisions of this chapter, including regulations for the chartering of
bridging bank depository institutions and prescribing the form and
content of any application to be filed with such appropriate Federal
banking agency in connection therewith.
(b) Effective Date of Regulations.--The regulations prescribed
under subsection (a) shall take effect not later than 1 month after the
publication in final form.
(c) Expedited Consideration.--Each appropriate Federal banking
agency with chartering authority shall expedite its consideration of
applications for the chartering of bridging bank depository
institutions. The Federal Deposit Insurance Corporation and the
National Credit Union Administration Board shall expedite its
consideration of applications for deposit insurance with respect to
applications to form de novo bridging bank depository institutions. The
Board of Governors of the Federal Reserve System shall expedite its
consideration of membership to the Federal Reserve System by bridging
bank depository institutions.
SEC. 10. CORRESPONDING CHANGES TO INTERNAL REVENUE CODE OF 1986.
(a) The Internal Revenue Code of 1986 is amended by inserting after
section 103 the following new section:
``Sec. 103A. Interest on bridging bank depository institution deposits
``Interest on savings and other interest bearing deposits paid by
bridging bank depository institutions (within the meaning of the
Bridging Bank to Recovery Act of 2009) shall be exempt from income
taxation now or hereafter imposed by the United States or by any State,
territorial, or local taxing authority.''.
(b) Section 108 of the Internal Revenue Code of 1986 (relating to
income from discharge of indebtedness) is amended by adding at the end
the following new subsection:
``(l) Bridging Bank Depository Institutions.--
``(1) In general.--Notwithstanding section 61, income from
the discharge of indebtedness in connection with the
modification or repurchase of a subprime debt instrument shall
not be included in gross income if a bridging bank depository
institution (within the meaning of the Bridging Bank to
Recovery Act of 2009) is the beneficial owner of such subprime
debt instrument at the time of the modification or repurchase.
``(2) Subprime debt instrument.--For purposes of this
subsection, the term `subprime debt instrument' shall be
defined from time to time by the Financial Institutions
Examination Council.
``(3) Authority to prescribe regulations.--The Secretary
may prescribe such regulations as may be necessary or
appropriate for purposes of applying this subsection.''.
(c) Section 1001 of the Internal Revenue Code of 1986 (relating to
the determination of amount of and recognition of gain or loss) is
amended by adding at the end the following new subsection:
``(f) Bridging Bank Depository Institutions.--
``(1) In general.--A modification of the terms of a
subprime debt instrument shall not result in a sale or other
disposition of property within the meaning of this section if a
bridging bank depository institution (within the meaning of the
Bridging Bank to Recovery Act of 2009) is the beneficial owner
of such subprime debt instrument at the time of the
modification.
``(2) Subprime debt instrument.--For purposes of this
subsection, the term `subprime debt instrument' shall be
defined from time to time by the Financial Institutions
Examination Council.''.
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