119 HR 6955 EH: Main Street Act
U.S. House of Representatives
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Main Street Capital Access Act
or the Main Street Act
. (b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—New Bank Formation and Local Community Access
Sec. 101. Promoting New Bank Formation.
Sec. 102. New Bank Application Numbers Knowledge.
Sec. 103. CDFI Fund Transparency.
Sec. 104. CDFI Bond Guarantee Improvement.
Title II—Tailoring Bank Regulation
Sec. 201. Taking Account of Institutions with Low Operation Risk.
Sec. 202. Small Bank Holding Company Relief.
Sec. 203. Tailoring and Indexing Enhanced Regulations.
Sec. 204. Community Bank Regulatory Tailoring.
Title III—Fair and Transparent Bank Supervision
Sec. 301. Halting Uncertain Methods and Practices in Supervision.
Sec. 302. Fair Audits and Inspections for Regulators’ Exams.
Sec. 303. Supervisory Modifications for Appropriate Risk-based Testing.
Sec. 304. Financial Integrity and Regulation Management.
Title IV—Regulatory Accountability and Transparency
Sec. 401. FDIC Board Accountability.
Sec. 402. Stop Agency Fiat Enforcement of Guidance.
Sec. 403. Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow.
Title V—Strengthening Local Bank Funding
Sec. 501. Bringing the Discount Window into the 21st Century.
Sec. 502. Keeping Deposits Local.
Title VI—Promoting Bank Competition and Merger Clarity
Sec. 601. Bank Competition Modernization.
Sec. 602. Merger Agreement Approvals Clarity and Predictability.
Sec. 603. Merger Process Review.
Sec. 604. Bank Failure Prevention.
Title VII—Strengthening Transparency and Involvement in Bank Resolutions
Sec. 701. Least Cost Exception.
Sec. 702. Enhancing Bank Resolution Participation.
Sec. 703. Failing Bank Acquisition Fairness.
Title VIII—Facilitating Innovation and Bank Partnerships
Sec. 801. Merchant Banking Modernization.
Sec. 802. Bank-Fintech Partnership Enhancement.
Sec. 803. Discretionary surplus fund.
<enum>I</enum><header>New Bank Formation and Local Community Access</header>
<section id="HECF21D14304E4B6791392FE144200C77" commented="no"><enum>101.</enum><header>Promoting New Bank Formation</header><text display-inline="no-display-inline">Section 908 of the 21st Century ROAD to Housing Act is amended—</text> <paragraph id="HCBD2B7E697BC4F6A9821B520D6209BC2"><enum>(1)</enum><text>in subsection (b)(2), by striking <quote>180-day</quote> and inserting <quote>90-day</quote>;</text></paragraph>
<paragraph id="H69D344A927B4493FA033CC3C1A88E161"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H1B459083D5C141F193A1854B1E155B82"><enum>(A)</enum><text>in the heading, by inserting <quote><header-in-text level="subsection" style="OLC">and extension</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">study</header-in-text></quote>;</text></subparagraph>
<subparagraph id="HBE437D21B73D45A9A8D1EC46C9309DF5"><enum>(B)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text></subparagraph> <subparagraph id="HEB6416E63BF14E7C8081DC2DF024DFC9"><enum>(C)</enum><text>by inserting after paragraph (1) the following:</text>
<quoted-block style="OLC" id="HFEDE8759838642F5A23879E25A84BA34" display-inline="no-display-inline">
<paragraph id="HFF079D5B7BC9406FB7BEE992FC062526" commented="no"><enum>(2)</enum><header>Safety and soundness determination; extension of pilot program</header>
<subparagraph id="H9188CF74254140899E5DC2D5590A8878" commented="no"><enum>(A)</enum><header>Determination</header><text display-inline="yes-display-inline">Not earlier than January 1, 2031, and not later than June 30, 2031, the Federal banking agencies may, jointly, determine that subsections (a) and (b) have had a significant adverse effect on the safety and soundness of qualifying community banks.</text></subparagraph> <subparagraph id="H9207D38D22FD46758B6F10CC5E15979E" commented="no"><enum>(B)</enum><header>Extension</header><text display-inline="yes-display-inline">Unless the Federal banking agencies make the determination described in subparagraph (A), the authorities under subsections (a) and (b) shall be permanent.</text></subparagraph>
<subparagraph id="H7658E1BDC7BB4BE1B38A8C51C6629B4E" commented="no"><enum>(C)</enum><header>Termination</header><text display-inline="yes-display-inline">If the Federal banking agencies make the determination described in subparagraph (A)—</text> <clause id="HB33EF7532C634E519F7E4799E0CD6A42"><enum>(i)</enum><text>subsections (a) and (b) shall only apply to a qualifying community bank that became an insured depository institution before the date of such determination; and</text></clause>
<clause id="H3EB8CA99C4D448C486F61B2912A6EADC"><enum>(ii)</enum><text display-inline="yes-display-inline">the Federal banking agencies shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and make such report available to the public, containing such determination and the reasons for such determination.</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H589D2E7F66C44DA6A390614E1EC68C67"><enum>(3)</enum><text>in subsection (e)(6)(B), by striking <quote>between January 1, 2026, and December 31, 2028</quote> and inserting <quote>on or after January 1, 2026</quote>. </text></paragraph></section>
<section id="H6EE0F41F0E4A4EF4A9EB1184B61509F4"><enum>102.</enum><header>New Bank Application Numbers Knowledge</header>
<subsection id="H72F4F2FBC1E44152BA3E6758286543CF"><enum>(a)</enum><header>Annual report on national bank and Federal savings association charter applications</header><text>The Comptroller of the Currency shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the Office of the Comptroller of the Currency includes the following:</text> <paragraph id="H6CA99264EC5449BB8445BC884F565399"><enum>(1)</enum><text display-inline="yes-display-inline">The number of applications for a national bank or Federal savings association charter received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.</text></paragraph>
<paragraph id="H14F04AA6776D466AB67C4575BB7DF89C"><enum>(2)</enum><text>The mean and median times for preliminary approval of such applications.</text></paragraph> <paragraph id="H01B16729063D41979DEEB486D29BE52B"><enum>(3)</enum><text display-inline="yes-display-inline">The mean and median times for final approval of such applications.</text></paragraph>
<paragraph id="H2DE50C6D35F0459591AF51BA72938A4A"><enum>(4)</enum><text display-inline="yes-display-inline">To the extent practicable, common reasons leading to the denial, withdrawal, or expiration of preliminary approval of such applications.</text></paragraph></subsection> <subsection id="HC25CFADAE1AE4C5FB600368DB312C071"><enum>(b)</enum><header>Annual report on Federal credit union charter applications</header><text>The National Credit Union Administration shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the agency includes the following:</text>
<paragraph id="HB18995C335C04CA597AF0FDC0C7FD56D"><enum>(1)</enum><text>The number of Federal credit union charter applications received, approved on a final basis, denied, withdrawn, inactive, or returned pending resubmission.</text></paragraph> <paragraph id="H58BDFDC8CFA045F6A2E97D2BB4D5DCB7"><enum>(2)</enum><text>The mean and median times for final approval of such applications.</text></paragraph>
<paragraph id="HFCB1E8FE444740E395992AFEE7972B2D"><enum>(3)</enum><text display-inline="yes-display-inline">To the extent practicable, common reasons leading to application denial, withdrawal, inactivity, or to applications being returned for resubmission.</text></paragraph></subsection> <subsection id="H45899EA1704E433E91FC1B48BCD0606D" display-inline="no-display-inline"><enum>(c)</enum><header>Annual report on depository institution holding company applications</header> <paragraph id="H3DDBA6175E00479684D2F3587D61F91A"><enum>(1)</enum><header>In general</header><text>The Board of Governors of the Federal Reserve System shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the Board of Governors includes the following:</text>
<subparagraph id="H2E2283CBEF634E4DA6C7D498AE461D23"><enum>(A)</enum><text display-inline="yes-display-inline">The number of applications to become a top-tier depository institution holding company received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.</text></subparagraph> <subparagraph id="HB5AEF9C3F08C422881BA9425E4C6F111"><enum>(B)</enum><text display-inline="yes-display-inline">The mean and median times to approve such applications.</text></subparagraph>
<subparagraph id="H210178038E2F4A8C98F903481A6CAE30"><enum>(C)</enum><text display-inline="yes-display-inline">To the extent practicable, common reasons leading to denial or withdrawal of such applications.</text></subparagraph></paragraph> <paragraph id="H60DEF4B6F4434A119764366D5AD4EF9B"><enum>(2)</enum><header>Top-tier depository institution holding company defined</header><text display-inline="yes-display-inline">In this subsection, the term <term>top-tier depository institution holding company</term> means a depository institution holding company (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>)) that is not controlled by any other depository institution holding company.</text></paragraph></subsection>
<subsection id="H212481288C2A47519D68E4D6AFBA2B52" display-inline="no-display-inline"><enum>(d)</enum><header>Annual report on Federal deposit insurance applications</header><text>The Federal Deposit Insurance Corporation shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the Corporation includes the following:</text> <paragraph id="HB43822697F384FEFB9DD25DF125DCF9F"><enum>(1)</enum><text display-inline="yes-display-inline">The number of applications for deposit insurance received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.</text></paragraph>
<paragraph id="H5B1D67070F574321B92DD1CE179F7CB2"><enum>(2)</enum><text display-inline="yes-display-inline">The mean and median times to approve such applications.</text></paragraph> <paragraph id="H490689E7E0CC4445B32A677DD19392D4"><enum>(3)</enum><text display-inline="yes-display-inline">To the extent practicable, common reasons leading to denial or withdrawal of such applications.</text></paragraph></subsection>
<subsection id="H169009FC502B45B69F77473DF6674CFD" display-inline="no-display-inline"><enum>(e)</enum><header>Annual report on State depository institution and State credit union charter applications</header>
<paragraph id="H2F6FFE0D52FA4EB4A402824471B17BDC"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration Board shall, jointly, and in consultation with State banking regulators and State credit union regulators, publish an annual report that includes the following, or with respect to any equivalent procedure used by such agencies includes the following:</text> <subparagraph id="H43F0D5778B7F4118885D079AB26E37E3"><enum>(A)</enum><text display-inline="yes-display-inline">The number of applications for a State depository institution charter received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.</text></subparagraph>
<subparagraph id="HABF92D8B11774ACC9D4BBA9C86F08E6D"><enum>(B)</enum><text display-inline="yes-display-inline">The mean and median times to approve such applications, with times for each State shown separately.</text></subparagraph> <subparagraph id="HBFE7EE2F188F46E28CF699624757279B"><enum>(C)</enum><text display-inline="yes-display-inline">To the extent practicable, common reasons leading to denial or withdrawal of such applications.</text></subparagraph></paragraph>
<paragraph id="HCA2CE4625E4E4FC28654E40C0548145D"><enum>(2)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="HF7DBD8E654774B738CFB81ED4DCDF8F7"><enum>(A)</enum><header>State</header><text display-inline="yes-display-inline">The term <term>State</term> means any State of the United States, the District of Columbia, and any territory of the United States.</text></subparagraph>
<subparagraph id="HC70CA2080AB845B7BBAA49AE7BBF6FF0"><enum>(B)</enum><header>State depository institution</header><text display-inline="yes-display-inline">The term <term>State depository institution</term> means—</text> <clause id="HD7D41AABDC264BD3AB3DF12DB26D36C6"><enum>(i)</enum><text display-inline="yes-display-inline">a State depository institution, as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text></clause>
<clause id="H8FDD9D534A6C495B9EE28E6C30C7603E"><enum>(ii)</enum><text>a State credit union, as defined in section 101 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>).</text></clause></subparagraph></paragraph></subsection></section> <section id="H4E704987847541F7A65F3CB000B08C8C"><enum>103.</enum><header>CDFI Fund Transparency</header><text display-inline="no-display-inline">Section 104(b) of the Riegle Community Development and Regulatory Improvement Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4703">12 U.S.C. 4703(b)</external-xref>) is amended by adding to the end the following:</text>
<quoted-block style="OLC" id="HC2C6E6FAAB5E4B4E9320CFA635F5B893" display-inline="no-display-inline">
<paragraph id="H5D5A727F7A3A41C9A9F3B76297E82843"><enum>(5)</enum><header>Annual testimony</header><text display-inline="yes-display-inline">The Secretary of the Treasury (or a designee of the Secretary) shall, at the discretion of the Chair of the Committee on Financial Services of the House of Representatives and the Chair of the Committee on Banking, Housing, and Urban Affairs of the Senate, annually testify before such committees (or a subcommittee of such committees) regarding—</text> <subparagraph id="HC580F54074884899A3F4268B8989B2F0"><enum>(A)</enum><text>the operations of the Fund during the previous year;</text></subparagraph>
<subparagraph id="H735BEBC0FAAE4B9B9F8B1FEDA5E842B3"><enum>(B)</enum><text display-inline="yes-display-inline">steps the Secretary and the Fund are taking to support community development financial institutions through the financial agent mentor-protégé program; and</text></subparagraph> <subparagraph id="HC0B81BFD7CE54405910ABAC10213F46C"><enum>(C)</enum><text>steps the Secretary and the Fund are taking to coordinate with regulators to ensure certification and reporting requirements are appropriately streamlined for community development financial institutions. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H11A9EB8690674825B122577FECAE8F26"><enum>104.</enum><header>CDFI Bond Guarantee Improvement</header>
<subsection id="HF55C5A50F3E247E1BC16A3C0BA57387A"><enum>(a)</enum><header>Sense of Congress</header><text display-inline="yes-display-inline">It is the sense of Congress that the authority to guarantee bonds under section 114A of the Community Development Banking and Financial Institutions Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4713a">12 U.S.C. 4713a</external-xref>) (commonly referred to as the <quote>CDFI Bond Guarantee Program</quote>) provides community development financial institutions with a sustainable source of long-term capital and furthers the mission of the Community Development Financial Institutions Fund (established under section 104(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4703">12 U.S.C. 4703(a)</external-xref>)) to increase economic opportunity and promote community development investments for underserved populations and distressed communities in the United States.</text></subsection> <subsection id="H2B31C27462F341F3A59E275B8105FA0D"><enum>(b)</enum><header>Guarantees for bonds and notes issued for community or economic development purposes</header> <paragraph id="H7444AD47FAB145AFBAB94FBD97BB0DEC"><enum>(1)</enum><header>In general</header><text>Section 114A of the Community Development Banking and Financial Institutions Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4713a">12 U.S.C. 4713a</external-xref>) is amended—</text>
<subparagraph id="HE916366B65474418B95A192D28B255E6"><enum>(A)</enum><text>in subsection (c)(2)—</text> <clause id="H1B32596647EA4C979646367C3C50C40A"><enum>(i)</enum><text>by striking <quote>, multiplied by an amount equal to the outstanding principal balance of issued notes or bonds</quote>; and</text></clause>
<clause id="HB3D1CCC2FE8548DB893D726ED8FAEB98"><enum>(ii)</enum><text>by inserting <quote>outstanding</quote> before <quote>principal amount</quote>;</text></clause></subparagraph> <subparagraph id="H0CDD1022CB3F4315B730EE98275043C1"><enum>(B)</enum><text>by amending subsection (e)(2) to read as follows:</text>
<quoted-block style="OLC" id="HEAF791D5F5EE484BB641F647A627110C" display-inline="no-display-inline">
<paragraph id="H5B081E392BCA4180A40C57F97FA1D389"><enum>(2)</enum><header>Limitation on guarantee amount</header><text display-inline="yes-display-inline">The Secretary may not guarantee any amount under the Program equal to an amount less than $25,000,000, but the total of all such guarantees in any fiscal year may not exceed $1,000,000,000.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H561C225B946141E78AD6A7D48DE0F2C5"><enum>(C)</enum><text>in subsection (g)(1), by striking <quote>10 basis points</quote> and inserting <quote>not fewer than 10 basis points and not more than 15 basis points</quote>; and</text></subparagraph>
<subparagraph id="HFB2F777526FF4FA79588879815677B94"><enum>(D)</enum><text>in subsection (k), by striking <quote>September 30, 2014</quote> and inserting <quote>December 31, 2028</quote>.</text></subparagraph></paragraph> <paragraph id="HC2B0DB04AC6F4A20B300193BDD736E16"><enum>(2)</enum><header>Clerical amendment</header><text>The table of contents in section 1(b) of the Riegle Community Development and Regulatory Improvement Act of 1994 (<external-xref legal-doc="public-law" parsable-cite="pl/103/325">Public Law 103–325</external-xref>; 108 Stat. 2160) is amended by inserting after the item relating to section 114 the following:</text>
<quoted-block style="OLC" id="H467F1DEA465C42E29B9E13B3F4F17D3A" display-inline="no-display-inline">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 114A. Guarantees for bonds and notes issued for community or economic development purposes.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H9F8507376E0945849D6309D0F577CFC6"><enum>(c)</enum><header>Report on the CDFI Bond Guarantee Program</header><text>Not later than 3 years after the date of enactment of this Act, the Secretary of the Treasury shall issue a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the effectiveness of the CDFI bond guarantee program established under section 114A of the Community Development Banking and Financial Institutions Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4713a">12 U.S.C. 4713a</external-xref>).</text></subsection></section> <enum>II</enum><header>Tailoring Bank Regulation</header> <section id="HEF3EC8A2E88F44BE87FD7A493A2A2B5B"><enum>201.</enum><header>Taking Account of Institutions with Low Operation Risk</header> <subsection id="H4935264BA3E048388ABD243E5C533B17"><enum>(a)</enum><header>Tailoring regulation to business model and risk</header> <paragraph id="H516284E7AF964F2A964ED1635FDC6F6D"><enum>(1)</enum><header>Definitions</header><text>In this subsection—</text>
<subparagraph id="H67549530053842E3B72F33745F448F5D"><enum>(A)</enum><text>the term <term>Federal financial institutions regulatory agency</term> means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Bureau of Consumer Financial Protection; and</text></subparagraph> <subparagraph id="HE2888D4363CC4894AF24AB6AB7EB897A"><enum>(B)</enum><text>the term <term>regulatory action</term>—</text>
<clause id="HF77F380B1C6F4A70927F8AE5DD30C28E"><enum>(i)</enum><text>means any proposed, interim, or final rule or regulation; and</text></clause> <clause id="H394AEBE5597E44CABB5FC9DA1966A618"><enum>(ii)</enum><text display-inline="yes-display-inline">does not include any action taken by a Federal financial institutions regulatory agency that is solely applicable to an individual institution, including an enforcement action, adjudication, or order.</text></clause></subparagraph></paragraph>
<paragraph id="HFBCEE41FDCFE4385BA8B08A6A3B34280"><enum>(2)</enum><header>Consideration and tailoring</header><text>For any regulatory action occurring after the date of enactment of this Act, each Federal financial institutions regulatory agency shall—</text> <subparagraph id="H9A8B6C769B354C57997FF0FADF59D035"><enum>(A)</enum><text>take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action; and</text></subparagraph>
<subparagraph id="H803FCCB1BE2542F89AC78CD5C4963009"><enum>(B)</enum><text>tailor the regulatory action applicable to a class or type of institution in a manner that limits the regulatory impact, including cost, human resource allocation, and other burdens, on the institution or type of institution as is appropriate for the risk profile and business model involved.</text></subparagraph></paragraph> <paragraph id="H57613FEE074D4FC5A550DAC68EAF3811"><enum>(3)</enum><header>Factors to consider</header><text>In carrying out the requirements of paragraph (2) with respect to a regulatory action, each Federal financial institutions regulatory agency shall consider—</text>
<subparagraph id="H71C2D56CDB56410C9D16742309EE9E10"><enum>(A)</enum><text display-inline="yes-display-inline">the aggregate effect of all applicable regulatory actions promulgated by such agency on the ability of institutions to flexibly serve customers of the institutions and local markets on and after the date of enactment of this Act;</text></subparagraph> <subparagraph id="HD4F69EC6EAB34B45BFEB9A1F14447BE0"><enum>(B)</enum><text>the potential that efforts to implement the regulatory action and third-party service provider actions may work to undercut efforts to tailor the regulatory action, as described in paragraph (2)(B); and</text></subparagraph>
<subparagraph id="HB268D766B1FB4E67ADFD4F73E1EDFC4B"><enum>(C)</enum><text>the statutory provision authorizing the regulatory action, the congressional intent with respect to the statutory provision, and the underlying policy objectives of the regulatory action.</text></subparagraph></paragraph> <paragraph id="H1F2E7CD172B74C8BA0BF9E64BA4D54FD"><enum>(4)</enum><header>Notice of proposed and final rulemaking</header><text display-inline="yes-display-inline">Each Federal financial institutions regulatory agency shall disclose and document in every notice of proposed rulemaking and in any final rulemaking for a regulatory action how the agency has applied paragraphs (2) and (3).</text></paragraph>
<paragraph id="H036FA97248B24B1295C53057A2C2333B"><enum>(5)</enum><header>Reports to Congress</header>
<subparagraph id="H2A9E14693A624A9F8779E6D87E973561"><enum>(A)</enum><header>Agency reporting</header><text>Not later than 1 year after the date of enactment of this Act and annually thereafter, each Federal financial institutions regulatory agency shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the specific actions taken to tailor the regulatory actions of the Federal financial institutions regulatory agency pursuant to the requirements of this section.</text></subparagraph> <subparagraph id="H0E56BB6B4C3E46088D3573C52E260976"><enum>(B)</enum><header>GAO reporting</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report evaluating the effects of this section on the factors described in paragraph (3). </text></subparagraph></paragraph></subsection>
<subsection id="H971F0C36415C4FC9A7C78FCFFCB8F544"><enum>(b)</enum><header>Short-form call reports for all banks eligible for the community bank leverage ratio</header><text>The appropriate Federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>), shall establish a reduced reporting requirement for all banks eligible for the Community Bank Leverage Ratio, as defined in section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5371">12 U.S.C. 5371</external-xref> note), when making the first and third report of condition of a year as required by section 7(a) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1817">12 U.S.C. 1817(a)</external-xref>).</text></subsection> <subsection id="H458D86ACBF514B6DA666505D87A6C9FE"><enum>(c)</enum><header>Report to Congress on modernization of supervision</header><text>Not later than 18 months after the date of enactment of this Act, the appropriate Federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>), in consultation with State bank supervisors, shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the modernization of bank supervision, including the following factors:</text>
<paragraph id="HAA58259708D044AF896864F869633D99"><enum>(1)</enum><text>Changing bank business models.</text></paragraph> <paragraph id="H323515E99C014AC1A479314CFB675653"><enum>(2)</enum><text>Examiner workforce and training.</text></paragraph>
<paragraph id="HC1970B72EBC84A829D3BA12570EFB040"><enum>(3)</enum><text>The structure of supervisory activities within banking agencies.</text></paragraph> <paragraph id="HEDB067C7C3874FC9BDBDF2AC2304C512"><enum>(4)</enum><text>Improving bank-supervisor communication and collaboration.</text></paragraph>
<paragraph id="H85177CE55DBF463797B41910539C7D9A"><enum>(5)</enum><text>The use of supervisory technology.</text></paragraph> <paragraph id="H335E31005FDC45E7A479074F346F905E"><enum>(6)</enum><text>Supervisory factors uniquely applicable to community banks.</text></paragraph>
<paragraph id="HCD647A1BFA5641659FFE383E74FF2900"><enum>(7)</enum><text>Changes in statutes necessary to achieve more effective supervision.</text></paragraph></subsection></section> <section id="HE715EBEEC61542D5986C590557AC25E1" section-type="subsequent-section"><enum>202.</enum><header>Small Bank Holding Company Relief</header><text display-inline="no-display-inline">Not later than 180 days after the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall revise appendix C to part 225 of title 12, Code of Federal Regulations (commonly known as the <quote>Small Bank Holding Company and Savings and Loan Holding Company Policy Statement</quote>), to raise the consolidated asset threshold under that appendix to $6,000,000,000 for any bank holding company or savings and loan holding company.</text></section>
<section id="HB4BA70EDB4BC407E905B5263CD7ABC23"><enum>203.</enum><header>Tailoring and Indexing Enhanced Regulations</header>
<subsection id="H3AC2A01E886549FCB2247B9B7F07BE12"><enum>(a)</enum><header>Periodic adjustments to thresholds</header><text display-inline="yes-display-inline">The Financial Stability Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5311">12 U.S.C. 5311 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H53F94B48C2894356A6950B1F999B6DE1" style="OLC"> <section id="H6A03473B304D42BFBBE6F1E70C3FCF6E"><enum>177.</enum><header>Periodic adjustments to thresholds</header> <subsection id="H164249DBF31D44DF880E4EB55C2A20C5"><enum>(a)</enum><header>In general</header> <paragraph id="HB9DDD61C4DAE42D184A96487A087B721"><enum>(1)</enum><header>Adjustment</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this section, and every 5 years thereafter, the Board of Governors shall increase each threshold described in subsection (b) by the ratio, if greater than 1, of the annual value of the economic indicator selected by the Board of Governors as appropriate for that threshold under paragraph (2)(B) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding April 1, 2026.</text></paragraph>
<paragraph id="H89F6D86B676145ADBF6A9979F112E6F2"><enum>(2)</enum><header>Selection of economic indicators</header><text>Not later than 3 months after the date of enactment of this section, the Board of Governors shall—</text> <subparagraph id="HEF4876CBF979495C8F05288F51EAAF8F"><enum>(A)</enum><text display-inline="yes-display-inline">complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) to adjust periodically the quantitative regulatory thresholds described in subsection (b);</text></subparagraph>
<subparagraph id="HDDB38FCAC3854BF29FBA3D5B73F83ABD"><enum>(B)</enum><text display-inline="yes-display-inline">for each threshold described in subsection (b), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold;</text></subparagraph> <subparagraph id="HDA9DAC46AAEF460FA501FF99E21A747F"><enum>(C)</enum><text>transmit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—</text>
<clause id="H54C321971A9B48F5B2EDC4FD2651E71F"><enum>(i)</enum><text>all findings and determinations made in carrying out the study required under subparagraph (A); and</text></clause> <clause id="H707B210A155646A1A959DB4B7EE4D68F"><enum>(ii)</enum><text>all selections made under subparagraph (B).</text></clause></subparagraph></paragraph></subsection>
<subsection id="HE5FFD20D63D14430946DEDF4ECD610B5"><enum>(b)</enum><header>Covered thresholds</header><text>The thresholds described in this subsection are the following:</text> <paragraph id="H3B55382E2B184F00B8ADE386B9110643"><enum>(1)</enum><text display-inline="yes-display-inline">Each bank holding company or savings and loan holding company total consolidated asset amount in the second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act.</text></paragraph>
<paragraph id="H33D1CCA83A2D44D39AE095D450DA5E86"><enum>(2)</enum><text>Each bank holding company total consolidated asset amount in—</text> <subparagraph id="H9050CFC3813D4FE78F93CCD1C98ECE03"><enum>(A)</enum><text>sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), 165(j)(1) of this Act; and</text></subparagraph>
<subparagraph id="HCF6A3B2AAA3946F89A5840432552A1C8"><enum>(B)</enum><text>section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.</text></subparagraph></paragraph> <paragraph id="H6261EAF78CD44643AC356733158DA686"><enum>(3)</enum><text>Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act.</text></paragraph></subsection>
<subsection id="HF31FDBD08C0F433F9C02A1680833ADDC"><enum>(c)</enum><header>Currency of information</header><text display-inline="yes-display-inline">The values used in the calculation under subsection (a) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce or Department of Labor, as appropriate.</text></subsection> <subsection id="HC049B8F3735B461D81B615D37467BDB2"><enum>(d)</enum><header>Rounding</header> <paragraph id="H4575674FE30340AABDDD29B48BF4098F"><enum>(1)</enum><text>If any amount equal to or greater than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $50,000,000,000, the amount shall be rounded up to the nearest $50,000,000,000.</text></paragraph>
<paragraph id="HDAA019DAFD4A4344BC886EE53CFD553C"><enum>(2)</enum><text>If any amount less than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $5,000,000,000, the amount shall be rounded up to the nearest $5,000,000,000.</text></paragraph></subsection> <subsection id="H5DA9C9725CC645319E55CA9B019CBDFF"><enum>(e)</enum><header>Publication</header><text>Not later than April 5 of any calendar year in which an adjustment is required to be calculated under subsection (a), the Board of Governors shall publish in the Federal Register the amounts as so calculated.</text></subsection>
<subsection id="HAB5B4900213A4953AF21FD30A45AC24A"><enum>(f)</enum><header>Implementation period</header><text>Any increase in amounts determined under subsection (a) shall take effect on January 1 of the year immediately succeeding the calendar year in which the increase is required to be calculated under subsection (a).</text></subsection></section> <section id="H9CE812E08F594AC2AA8173EC05020D97"><enum>178.</enum><header>Periodic adjustments to thresholds established by rule</header> <subsection id="H5D198FB6B38E4C578F58BF490F4C5BF1"><enum>(a)</enum><header>Agency review</header><text>Not later than June 30, 2026, and the 1st day of each subsequent 5-year period, the Board of Governors, the Comptroller of the Currency, and the Corporation shall, to the extent applicable, review—</text>
<paragraph id="HB6ED44CCE5204FCC8A5E4986ABB4F5EC"><enum>(1)</enum><text>any regulation—</text> <subparagraph id="HC93B3FCE93BD49A3A0FA2CA466E90DB3"><enum>(A)</enum><text>implementing section 165 of this Act; or</text></subparagraph>
<subparagraph id="HED5D82DDB38B4396A898768D8F434305"><enum>(B)</enum><text>making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and</text></subparagraph></paragraph> <paragraph id="HA74BA91C92324E859DFAF3B9F6A606F6"><enum>(2)</enum><text>any asset threshold or other quantitative threshold in such regulations implementing section 165 of this Act, or in such regulations making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act, the amount of which is not prescribed by statute.</text></paragraph></subsection>
<subsection id="HAFDB739CBBD5406A83CCA5222A64D166"><enum>(b)</enum><header>Modifications required</header><text>The Board of Governors, the Comptroller of the Currency, and the Corporation shall modify any such thresholds identified by each review conducted under subsection (a) by the ratio, if greater than 1, of the annual value of the economic indicator selected by the agency as appropriate for that threshold under paragraph (1) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding the effective date of such threshold, as each respective agency shall determine as appropriate for such regulations. In making such determination, the Board of Governors, the Comptroller of the Currency, and the Corporation shall—</text> <paragraph id="H449BE3C6298B46BEB752371C9E25EA09"><enum>(1)</enum><text display-inline="yes-display-inline">not later than 3 months after the date of enactment of this subsection, for each threshold identified by each review conducted under subsection (a), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold, and use the values of such selected economic indicator most recently published as of the date of commencement of the review to compute the ratio described in this subsection;</text></paragraph>
<paragraph id="H06A82750AD4C42C0965D02D7969732D7"><enum>(2)</enum><text>seek to establish, to the extent feasible, uniform thresholds for use by each such agency, taking into account the entities regulated by each such agency and the purposes for which such threshold was established; and</text></paragraph> <paragraph id="H84DFECC133D34CF19EF7BD5729E9B876"><enum>(3)</enum><text>seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act.</text></paragraph></subsection>
<subsection id="HC4336ACE7DA94663BBC8DBC58274EC2E"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Upon conclusion of each review required under subsection (a), each of the Board of Governors, the Comptroller of the Currency, and the Corporation shall transmit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing a description of any modification of any regulation such agency made pursuant to subsection (b).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDA916A0AF883499FB1301EE84F54AE48"><enum>(b)</enum><header>Clerical amendment</header><text>The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 176 the following:</text>
<quoted-block style="OLC" id="H128EE582DAB545DF86F149C119630749" display-inline="no-display-inline">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 177. Periodic adjustments to thresholds.</toc-entry>
<toc-entry level="section">Sec. 178. Periodic adjustments to thresholds established by rule.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H96B492CFF4F6441C9EE52DFDDAC2640D"><enum>204.</enum><header>Community Bank Regulatory Tailoring</header>
<subsection id="HE74EDEF39E714A718CB1AAA2309ECCF9"><enum>(a)</enum><header>Periodic adjustments to thresholds</header>
<paragraph id="HDE1028D789E44562B6997A61ACC76AB6" display-inline="no-display-inline"><enum>(1)</enum><header>In general</header>
<subparagraph id="HA61FE1F206EA44F8817E017DE4478EF9"><enum>(A)</enum><header>Adjustment</header><text display-inline="yes-display-inline">By April 1, 2031, and the 1st day of each subsequent 5-year period, the Board of Governors of the Federal Reserve System shall prescribe the amount by which each dollar amount described in subsection (b) shall be increased by the ratio, if greater than 1, of the annual value of the economic indicator selected by the Board of Governors of the Federal Reserve System as appropriate for that dollar amount under subparagraph (B) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding April 1, 2026.</text></subparagraph> <subparagraph id="HA7308A5C4228480CA88C36402B60499E"><enum>(B)</enum><header>Selection of economic indicators</header><text>Not later than 3 months after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall—</text>
<clause id="H29CF6A6AFE1F44DB8CD5570766376131"><enum>(i)</enum><text display-inline="yes-display-inline">complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) to adjust periodically the dollar amounts described in subsection (b);</text></clause> <clause id="H5E0EBAA23A1049A5B6C2484BE0F53C71"><enum>(ii)</enum><text display-inline="yes-display-inline">for each dollar amount described in subsection (b), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such dollar amount;</text></clause>
<clause id="HE0DD7C33E4794E79966B0AF4F1E06FEE"><enum>(iii)</enum><text>transmit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—</text> <subclause id="HE59B601C6F7547FB995B8D2490BE38F5"><enum>(I)</enum><text>all findings and determinations made in carrying out the study required under clause (i); and</text></subclause>
<subclause id="H732C2EDA810E4000BEB50BF38EB36F1D"><enum>(II)</enum><text>all selections made under clause (ii).</text></subclause></clause></subparagraph></paragraph> <paragraph id="H7227DC2204034164A3006AC5DE3EBAC7"><enum>(2)</enum><header>Currency of information</header><text display-inline="yes-display-inline">The values used in the calculation under paragraph (1) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce or Department of Labor, as appropriate.</text></paragraph>
<paragraph id="HCBE2A45CBB374A4DB75AD890259F3771"><enum>(3)</enum><header>Rounding</header>
<subparagraph id="H432B6F81BF99484F813090106B519FBE"><enum>(A)</enum><text display-inline="yes-display-inline">If any amount equal to or greater than $100,000,000,000 determined under paragraph (1) for any period is not a multiple of $50,000,000,000, the amount shall be rounded up to the nearest $50,000,000,000.</text></subparagraph> <subparagraph id="HACA697174EDF4D16861C813FFE263962"><enum>(B)</enum><text display-inline="yes-display-inline">If any amount less than $100,000,000,000 but equal to or greater than $10,000,000,000 determined under paragraph (1) for any period is not a multiple of $5,000,000,000, the amount shall be rounded up to the nearest $5,000,000,000.</text></subparagraph>
<subparagraph id="HD0B6953F7DDF4EEC9281724F80E114F8"><enum>(C)</enum><text display-inline="yes-display-inline">If any amount less than $10,000,000,000 but equal to or greater than $1,000,000,000 determined under paragraph (1) for any period is not a multiple of $500,000,000, the amount shall be rounded up to the nearest $500,000,000.</text></subparagraph> <subparagraph id="H16C007DCB5744393A918F2D5CDF57AEA"><enum>(D)</enum><text display-inline="yes-display-inline">If any amount less than $1,000,000,000 but equal to or greater than $100,000,000 determined under paragraph (1) for any period is not a multiple of $50,000,000, the amount shall be rounded up to the nearest $50,000,000.</text></subparagraph>
<subparagraph id="HC28C0093C4B64F5290290C2853C80D6A"><enum>(E)</enum><text display-inline="yes-display-inline">If any amount less than $100,000,000 but equal to or greater than $10,000,000 determined under paragraph (1) for any period is not a multiple of $5,000,000, the amount shall be rounded up to the nearest $5,000,000.</text></subparagraph> <subparagraph id="H124CD35AE44F4C0FAE4521858E2EE1D2"><enum>(F)</enum><text display-inline="yes-display-inline">If any amount less than $10,000,000 but equal to or greater than $1,000,000 determined under paragraph (1) for any period is not a multiple of $500,000, the amount shall be rounded up to the nearest $500,000.</text></subparagraph>
<subparagraph id="H3DA556513C234EE0B91F3BCB23A1B1B3"><enum>(G)</enum><text display-inline="yes-display-inline">If any amount less than $1,000,000 but equal to or greater than $100,000 determined under paragraph (1) for any period is not a multiple of $50,000, the amount shall be rounded up to the nearest $50,000.</text></subparagraph> <subparagraph id="H3AC311C6216C4157A5B2B724CF150D5C"><enum>(H)</enum><text display-inline="yes-display-inline">If any amount less than $100,000 but equal to or greater than $10,000 determined under paragraph (1) for any period is not a multiple of $5,000, the amount shall be rounded up to the nearest $5,000.</text></subparagraph>
<subparagraph id="HBCA0A3541E994FEC8E578DA0564E5DB6"><enum>(I)</enum><text display-inline="yes-display-inline">If any amount less than $10,000 but equal to or greater than $1,000 determined under paragraph (1) for any period is not a multiple of $500, the amount shall be rounded up to the nearest $500.</text></subparagraph> <subparagraph id="H4DCAAF8D35284604AF084180C24BFB42"><enum>(J)</enum><text display-inline="yes-display-inline">If any amount less than $1,000 but equal to or greater than $100 determined under paragraph (1) for any period is not a multiple of $50, the amount shall be rounded up to the nearest $50.</text></subparagraph>
<subparagraph id="HEC1FFB771A5F49DC8733852B7BF3373A"><enum>(K)</enum><text display-inline="yes-display-inline">If any amount less than $100 but equal to or greater than $10 determined under paragraph (1) for any period is not a multiple of $5, the amount shall be rounded up to the nearest $5.</text></subparagraph> <subparagraph id="H9F049954F95F4AE38E19AF62059EEE53"><enum>(L)</enum><text display-inline="yes-display-inline">If any amount less than $10 but equal to or greater than $1 determined under paragraph (1) for any period is not a multiple of $0.50, the amount shall be rounded up to the nearest $0.50.</text></subparagraph></paragraph>
<paragraph id="H4136408A97954C5EB4ABA1F422087F1D"><enum>(4)</enum><header>Publication</header><text display-inline="yes-display-inline">Not later than April 5 of any calendar year in which an adjustment is required to be calculated under paragraph (1), the Board of Governors of the Federal Reserve System shall publish in the Federal Register the dollar amounts as so calculated.</text></paragraph> <paragraph id="HE920EF6C7EB449658D3D1D6DE5E89918"><enum>(5)</enum><header>Implementation period</header><text display-inline="yes-display-inline">The increase in the dollar amounts shall take effect on January 1 of the year immediately succeeding any calendar year in which an adjustment is required to be calculated under paragraph (1).</text></paragraph></subsection>
<subsection id="H02224A07CF2C496F85525467F5EED2BC"><enum>(b)</enum><header>Dollar amounts</header><text display-inline="yes-display-inline">The dollar amounts described in this subsection are the dollar amounts described in each of the following:</text> <paragraph id="HAA5DCADB77794B0A8B8BC87234CE18A3"><enum>(1)</enum><text display-inline="yes-display-inline">Section 5(c)(3)(C)(ii) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1844">12 U.S.C. 1844(c)(3)(C)(ii)</external-xref>).</text></paragraph>
<paragraph id="H7203DFC4237C416CA24F1E5E63D69053"><enum>(2)</enum><text display-inline="yes-display-inline">Section 809(a) of the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2908">12 U.S.C. 2908(a)</external-xref>).</text></paragraph> <paragraph id="HE60FB5DEF59944AD8A83AB1F3D5A9741"><enum>(3)</enum><text>Sections 202(4), 203(1), and 204 of the Depository Institution Management Interlocks Act (<external-xref legal-doc="usc" parsable-cite="usc/12/3201">12 U.S.C. 3201 et seq.</external-xref>).</text></paragraph>
<paragraph id="HE580149708974AEEB339B9349D774534"><enum>(4)</enum><text display-inline="yes-display-inline">Sections 210(o), 210(r)(1)(A)(i), and section 956(f) Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5301">12 U.S.C. 5301 et seq.</external-xref>).</text></paragraph> <paragraph id="H16A226574EFC46C699376DD97DE042F6"><enum>(5)</enum><text display-inline="yes-display-inline">Sections 202(a)(6), 202(b)(1)(A), 202(c)(1)(A)(iii), 216(b)(2)(B)(iii)(II), 216(f)(2), 216(i)(4)(B), 216(j)(2)(A), and 216(o)(4) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1751">12 U.S.C. 1751 et seq.</external-xref>).</text></paragraph>
<paragraph id="H414A88D89E6B4E58AE195BFB704B64ED"><enum>(6)</enum><text display-inline="yes-display-inline">Sections 7(a)(12), 11(p)(1)(A)(i), 36(i)(1)(B), 36(j), 38(b)(2)(A)(ii), and 38(k)(2)(B)(iii) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>).</text></paragraph> <paragraph id="H6D14C17D82514458AADB76D509D51604"><enum>(7)</enum><text>Section 2(10) of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422(10)</external-xref>).</text></paragraph>
<paragraph id="H5394DEB76667485D94846A06C49D7BFD"><enum>(8)</enum><text display-inline="yes-display-inline">Sections 7(a)(1) and 22(h)(5)(C) of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/221">12 U.S.C. 221 et seq.</external-xref>).</text></paragraph> <paragraph id="H3F89DC2101E14F01AA513120441F29C6"><enum>(9)</enum><text display-inline="yes-display-inline">The second paragraph (3) of section 304(i) (relating to <quote>Exemption from certain disclosure requirements</quote>) and section 309(a) of the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2801">12 U.S.C. 2801 et seq.</external-xref>).</text></paragraph>
<paragraph id="H2703BAC19F2B4377AEDC71C253AFF12B"><enum>(10)</enum><text>Section 5(u)(2)(A) of the Home Owners’ Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1464">12 U.S.C. 1464(u)(2)(A)</external-xref>).</text></paragraph> <paragraph id="HA8B9B8E137304628A04DB3F2FBA22CB5"><enum>(11)</enum><text>Section 909(a)(1) of the International Lending Supervision Act of 1983 (<external-xref legal-doc="usc" parsable-cite="usc/12/3908">12 U.S.C. 3908(a)(1)</external-xref>).</text></paragraph>
<paragraph id="H0EE013027B49459092984DE449F0D863"><enum>(12)</enum><text display-inline="yes-display-inline">Section 3(1)(B)(iv) of the Real Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2602">12 U.S.C. 2602(1)(B)(iv)</external-xref>).</text></paragraph> <paragraph id="H12A16C3A08654DE78C8D58798F9544B8"><enum>(13)</enum><text>Section 5136A(a)(2)(D)(ii) of the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/12/24a">12 U.S.C. 24a(a)(2)(D)(ii)</external-xref>).</text></paragraph>
<paragraph id="H5DCE0AF47638468789F1854A776D5D66"><enum>(14)</enum><text display-inline="yes-display-inline">Section 129C(b)(2)(F)(i) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1639c">15 U.S.C. 1639c(b)(2)(F)(i)</external-xref>).</text></paragraph></subsection></section> <enum>III</enum><header>Fair and Transparent Bank Supervision</header> <section id="H8F97B8C8F7F14A53BDC4FEFF9D186084"><enum>301.</enum><header>Halting Uncertain Methods and Practices in Supervision</header> <subsection id="HDF257848EE774901B965B04EBCD39361"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text>
<paragraph id="H9967E93ADFCA474BAC8D81E6A74C2C0B"><enum>(1)</enum><text display-inline="yes-display-inline">CAMELS ratings (Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk) are a critical tool for evaluating the safety and soundness of financial institutions, and the basis for determining significant regulatory matters such as the evaluation for mergers and acquisitions and a bank’s deposit insurance premiums;</text></paragraph> <paragraph id="HB8D2ADA3B61146AB9D3C3A675ACB8982"><enum>(2)</enum><text display-inline="yes-display-inline">the CAMELS rating system relies heavily on examiner judgment, which can lead to subjective and inconsistent ratings across similar institutions;</text></paragraph>
<paragraph id="H35F314B91BB842EBA71EEF98505B299D"><enum>(3)</enum><text display-inline="yes-display-inline">establishing articulable, clear, and reviewable measures for each CAMELS component and their relative weighting in determining composite ratings will promote fairness, consistency, and accountability in supervisory assessments; and</text></paragraph> <paragraph id="H15821D5681FF4F13B956F2AE39DD6291"><enum>(4)</enum><text>examination and supervision, as well as the CAMELS rating system, should focus on a financial institution’s material financial condition or solvency.</text></paragraph></subsection>
<subsection id="HA52C1A990ABA4B74999C41AD67EF791E"><enum>(b)</enum><header>Amendments to the CAMELS Rating System</header>
<paragraph id="HAF18133B7C6A444F969813F30EAB735F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H4ACE71F59CD945D9BBB33FAB523B0139" display-inline="no-display-inline"> <section id="H01D744037FD549D99A755BB4516774E1"><enum>1012.</enum><header>Amendments to the CAMELS Rating System</header> <subsection id="H4869EBDAF4154A4C8C49CA6CE47557E1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to—</text>
<paragraph id="HCBC3CCB5FBA3482DA114B0F3A2136A28"><enum>(1)</enum><text display-inline="yes-display-inline">establish articulable, clear, and reviewable criteria for assessing each CAMELS component;</text></paragraph> <paragraph id="HEC4E5855E79B4BB9B98E1D21913E30D8"><enum>(2)</enum><text display-inline="yes-display-inline">revise the factors affecting each CAMELS component to derive a composite rating that more accurately reflects the material financial condition and risk profile of the financial institutions being rated;</text></paragraph>
<paragraph id="H7D77DEFC87464B7DB1D6E452DA95B966"><enum>(3)</enum><text display-inline="yes-display-inline">revise the management component of the CAMELS components to limit the assessment under such component to articulable, clear, and reviewable measures of an institution’s management in relation to its risk profile;</text></paragraph> <paragraph id="HD20FBC4F56F94AD4ABA00257A179DD60"><enum>(4)</enum><text display-inline="yes-display-inline">ensure that composite ratings consider the financial institution’s compliance with—</text>
<subparagraph id="H113D2A226EB2412AA8939AFD34EC811A"><enum>(A)</enum><text>section 21 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1829b">12 U.S.C. 1829b</external-xref>);</text></subparagraph> <subparagraph id="H2F9CE14B55BE4BA2A188500CF37DACD9"><enum>(B)</enum><text>chapter 2 of title I of <external-xref legal-doc="public-law" parsable-cite="pl/91/508">Public Law 91–508</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/12/1951">12 U.S.C. 1951 et seq.</external-xref>);</text></subparagraph>
<subparagraph id="H537D9D2D062641C5AE4E66D9DC2CF65F"><enum>(C)</enum><text>subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States Code; and</text></subparagraph> <subparagraph id="H6FF70CB4556F4D95BDF41A562BE4245B"><enum>(D)</enum><text>any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and</text></subparagraph></paragraph>
<paragraph id="HC76E7DE9BC574286B710DF8AB0283DDA"><enum>(5)</enum><text>ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component.</text></paragraph></subsection> <subsection id="HD7B9B114B6904A2A82DE140C7098E499"><enum>(b)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">Not later than 12 months after the Council makes the recommendations required under subsection (a), the Federal financial institutions regulatory agencies shall, jointly, issue rules to carry out the recommendations described under subsection (a).</text></subsection>
<subsection id="H1259A35DDC81450DB2CFBD998592A427"><enum>(c)</enum><header>Public comment period</header><text display-inline="yes-display-inline">In issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall—</text> <paragraph id="H9203914584804BB1B561E3386217580A"><enum>(1)</enum><text>publish a notice of proposed rulemaking with respect to such rules; and</text></paragraph>
<paragraph id="HFE1D8F99D76D4AA6A2772DAF0FC08725"><enum>(2)</enum><text>provide for a public comment period of not less than 90 days.</text></paragraph></subsection> <subsection id="H8BFE72DAC2784DD096ECECB68B065621"><enum>(d)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this section may be construed to limit the authority of the Federal financial institutions regulatory agencies to take supervisory, adjudicatory, or enforcement actions to ensure the safety and soundness of financial institutions.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HA43A9F055A7A4609953EED657725A3E5"><enum>(2)</enum><header>Well managed definition</header>
<subparagraph id="HD7F8424F58AB4D43A1323B28FD71B2C7"><enum>(A)</enum><header>Bank Holding Company Act of 1956</header><text>Section 2(o)(9)(A) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841(o)(9)(A)</external-xref>) is amended—</text> <clause id="HCB6BD1EDDEE447699992659084B96389"><enum>(i)</enum><text>by striking <quote>achievement of</quote> and all that follows through <quote>a CAMEL</quote> and inserting <quote>achievement of a CAMEL</quote>;</text></clause>
<clause id="HFA8EACE86F9642FAB6834283D3528A83"><enum>(ii)</enum><text>by striking <quote>; and</quote> and inserting <quote>; or</quote>; and</text></clause> <clause id="H009351BC278B4067A6287848E40BA7E2"><enum>(iii)</enum><text>by striking clause (ii).</text></clause></subparagraph>
<subparagraph id="H6C43FA0278CF4772BE5E2859DE5908DE"><enum>(B)</enum><header>Revised Statutes of the United States</header><text display-inline="yes-display-inline">Section 5136A(g)(6)(A) of the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/12/24a">12 U.S.C. 24a(g)(6)(A)</external-xref>) is amended—</text> <clause id="HFA8A751423B141ADB11619C987FCB85B"><enum>(i)</enum><text>by striking <quote>agency—</quote> and all that follows through <quote>the achievement</quote> and inserting <quote>agency, the achievement</quote>;</text></clause>
<clause id="H70D5A0AED6974B93B1B13BA379461EB4"><enum>(ii)</enum><text>by striking <quote>; and</quote> and inserting <quote>; or</quote>; and</text></clause> <clause id="H4F0468DDE2B94F1A93BFD062833CD3D7"><enum>(iii)</enum><text>by striking clause (ii).</text></clause></subparagraph></paragraph></subsection></section>
<section id="H58994735D7904699B16A57E6F9DB696C"><enum>302.</enum><header>Fair Audits and Inspections for Regulators’ Exams</header>
<subsection id="H0DFE688F5E7D46B6B1ABBB3785CE81CA"><enum>(a)</enum><header>Timeliness of examinations and examination reports</header><text>The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301 et seq.</external-xref>), as amended by section 301(b)(1), is further amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HBFAF2E1EB97D4A9A8F35AB77052A1ED9"> <section id="H49B8337849004F049E15811C0441FE31"><enum>1013.</enum><header>Timeliness of examinations and examination reports</header> <subsection id="H482D05ECF16A436E8DA1AA18FD7ABA9B"><enum>(a)</enum><header>Timeliness of examinations</header><text display-inline="yes-display-inline">A Federal financial institutions regulatory agency shall complete any examination of a financial institution, other than a financial institution subject to a continuous or resident examination program, within 270 days of commencing the examination, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the financial institution describing with particularity the reasons that a longer period is needed.</text></subsection>
<subsection id="H92D3FD4EEAD641168EDA46DAF322C562"><enum>(b)</enum><header>Final examination report</header><text display-inline="yes-display-inline">A Federal financial institutions regulatory agency shall provide a final examination report to a financial institution, other than a financial institution subject to a continuous or resident examination program, not later than 90 days after the later of—</text> <paragraph id="H5AB32377F79242BB9738F1A2EE0489F1"><enum>(1)</enum><text>the exit interview for an examination of the institution; or</text></paragraph>
<paragraph id="HE4460C46C42E403B9475479C27D164F2"><enum>(2)</enum><text>the provision of additional material information by the institution relating to the examination.</text></paragraph></subsection> <subsection id="H95A5841281024A4886F3017B62BBD456" display-inline="no-display-inline"><enum>(c)</enum><header>Exit interview requirement</header><text display-inline="yes-display-inline">Within 30 days of completing an examination for a financial institution not subject to a continuous or resident examination program, a Federal financial institutions regulatory agency shall conduct an exit interview with the financial institution’s senior management or the board of directors, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the institution describing with particularity the reasons that a longer period is needed to complete the exit interview.</text></subsection>
<subsection id="HF617F639DCE04B87A2B89E9848F24A11"><enum>(d)</enum><header>Examination materials</header><text>Upon the written request of a financial institution, the Federal financial institutions regulatory agency shall include with the final report an appendix listing all examination or other factual information relied upon by the agency in support of a material supervisory determination.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HEF014DA703FB4AC1B3EFEF005896267F"><enum>(b)</enum><header>Timeliness of required prudential private letter rulings</header><text>The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301 et seq.</external-xref>), as amended by subsection (a), is further amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HE09A30B4424D48D49599BF584A1D2148">
<section id="H36641CEBBAA94B7492318370C9082E70"><enum>1014.</enum><header>Timeliness of required prudential private letter rulings</header>
<subsection id="HF987E4708B6A4A3D99EC2B62727AF8AD"><enum>(a)</enum><header>Authority and regulation</header>
<paragraph id="H8B4B814A275C4F3F8A788752D4515090"><enum>(1)</enum><header>In general</header><text>Each Federal financial institutions regulatory agency shall establish procedures providing that a covered financial institution may, upon application by the covered financial institution and with respect to a covered action, obtain written advice regarding—</text> <subparagraph id="HF278C06F939B47F4A17404D0D0117D87"><enum>(A)</enum><text>the agency’s non-objection to the financial institution conducting a particular activity;</text></subparagraph>
<subparagraph id="H5EC043734A0A487CBF007A45A7916C20"><enum>(B)</enum><text display-inline="yes-display-inline">the agency’s interpretation of a law or regulation as applied to a particular matter;</text></subparagraph> <subparagraph id="HA5DCD64961E6433BBB68C37DD6830F6A"><enum>(C)</enum><text display-inline="yes-display-inline">the agency’s interpretation of how generally accepted accounting principles or accounting objectives, standards, and requirements apply to a particular matter; or</text></subparagraph>
<subparagraph id="H9C3BECC74E9C40B5B6AEF61CB6B11EC8"><enum>(D)</enum><text display-inline="yes-display-inline">the agency’s application of any supervisory guidance, statement of policy, or interpretive rule to a particular matter.</text></subparagraph></paragraph> <paragraph id="H0AAC74B224A141D5B97D50A27F529239"><enum>(2)</enum><header>Covered action defined</header><text display-inline="yes-display-inline">In this subsection and with respect to a covered financial institution, the term <quote>covered action</quote> means—</text>
<subparagraph id="HE588B6EDB79F4C1586C3BEA9E6482C10"><enum>(A)</enum><text display-inline="yes-display-inline">any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including—</text> <clause id="HC72CC4D08A0F43CEAE745A6D52529385"><enum>(i)</enum><text>entering into a transaction;</text></clause>
<clause id="HE42B45C671F44C84ADFBBE16D2BA369D"><enum>(ii)</enum><text>issuing a product or service; or</text></clause> <clause id="H8D9B92F32A624180BCE0470BA4E06D23"><enum>(iii)</enum><text>changing the corporate structure of the covered financial institution; and</text></clause></subparagraph>
<subparagraph id="H953BCC344DCF4949B4B2D5AB282A0CF2"><enum>(B)</enum><text display-inline="yes-display-inline">a Federal financial institutions regulatory agency’s objection to the covered financial institution commencing or otherwise conducting an activity (including an action described in subparagraph (A)).</text></subparagraph></paragraph></subsection> <subsection id="H2FD62B8F678A415AA9E9DCD8386376DB"><enum>(b)</enum><header>Contents of request</header><text display-inline="yes-display-inline">The procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain—</text>
<paragraph id="H98E20C0BFAA04E75BB8FA3520A0B745D"><enum>(1)</enum><text>the nature of the request;</text></paragraph> <paragraph id="HCA63E085EB344F9C83ABC4AF2E5BB1C2"><enum>(2)</enum><text>applicable facts relating to the matter;</text></paragraph>
<paragraph id="H6070539BE3D5429BA0E68C4FB3815E91"><enum>(3)</enum><text>applicable law, regulations, or generally accepted accounting principles relating to the matter; and</text></paragraph> <paragraph id="HE3C53815D01D427F832623F8CF9833B9"><enum>(4)</enum><text>a summary of the request.</text></paragraph></subsection>
<subsection id="H0C1FF91033AE4E8C8245B24209A2754D"><enum>(c)</enum><header>Response to request</header><text display-inline="yes-display-inline">A Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request—</text> <paragraph id="H221F9B6DE9C746EB896F3B1C8CE40B82"><enum>(1)</enum><text display-inline="yes-display-inline">provide the financial institution making the request with written notification confirming receipt of the request and stating whether the request contains all of the information required under subsection (b); and</text></paragraph>
<paragraph id="HA1F075219F8F4C8B897462DFAF2B958B"><enum>(2)</enum><text display-inline="yes-display-inline">if the request does not contain all of the information required under subsection (b)—</text> <subparagraph id="H4D24A1D47F7F4FE9BC5DC92C5CEB78D0"><enum>(A)</enum><text>provide the financial institution with an explanation of what information is missing; and</text></subparagraph>
<subparagraph id="H2D9CB94219F04E91A71F9318CF6DB29C"><enum>(B)</enum><text>notify the financial institution that the financial institution may provide the missing information to the agency within 30 days.</text></subparagraph></paragraph></subsection> <subsection id="HA5A19A6766024594B4792A4476BE1E86"><enum>(d)</enum><header>Providing missing information</header><text display-inline="yes-display-inline">If a Federal financial institutions regulatory agency informs the financial institution under subsection (c) that the request for written advice does not contain all the information required under subsection (b), the financial institution may provide the missing information to the Federal financial institutions regulatory agency within 30 days of the date the financial institution receives the explanation of the missing information under subsection (c).</text></subsection>
<subsection id="H9B8F8B0232924355B0238F5F526D64B8"><enum>(e)</enum><header>Determination</header><text display-inline="yes-display-inline">A Federal financial institutions regulatory agency receiving a request for written advice under the procedures established under subsection (a) shall provide the financial institution with a written response (or, for purposes of paragraph (3), notify the financial institution that a determination cannot be made)—</text> <paragraph id="H50678A00C2CD4E20B6AC42D5372628B6"><enum>(1)</enum><text display-inline="yes-display-inline">if the initial request contains the information required under subsection (b), not later than the end of the 60-day period beginning on the date the Federal financial institutions regulatory agency notifies the financial institution of the receipt of the request under subsection (c);</text></paragraph>
<paragraph id="H41CEB998C88A42E3B871E9E5B3BE1230"><enum>(2)</enum><text display-inline="yes-display-inline">if the initial request does not contain the information required under subsection (b), but the financial institution provides the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the date such missing information is provided; or</text></paragraph> <paragraph id="H97061281F0944854A1A6DAF5A99710DE"><enum>(3)</enum><text display-inline="yes-display-inline">if the initial request does not contain the information required under subsection (b), and the financial institution does not provide the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the end of such 30-day period.</text></paragraph></subsection>
<subsection id="H330EEF378CC84FE7B79324DAE05B79D4"><enum>(f)</enum><header>Limited binding effect</header><text display-inline="yes-display-inline">Written advice issued by a Federal financial institutions regulatory agency under the procedures established under this section—</text> <paragraph id="H882AD1968F964A49B8B1EF746909CEA9"><enum>(1)</enum><text>shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request;</text></paragraph>
<paragraph id="H8E94477507E74561AA426E5DB847D27D"><enum>(2)</enum><text display-inline="yes-display-inline">may be relied upon by the financial institution requesting the written advice in good faith; and</text></paragraph> <paragraph id="HDCD04EEE201648C7B78BA655E7977EBD"><enum>(3)</enum><text>shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent.</text></paragraph></subsection>
<subsection id="H8E3C4CB718894117A0885FCF8A0C064C"><enum>(g)</enum><header>Confidentiality and privilege</header>
<paragraph id="H7552A246E4D14ADB9E088D7A2F82B4BF"><enum>(1)</enum><header>Treatment of written advice</header><text>Written advice issued under this section, and any materials submitted in connection therewith, and the fact that a request for written advice was made shall be treated as confidential supervisory information and exempt from disclosure under section 552(b) of title 5, United States Code.</text></paragraph> <paragraph id="HB580FEB29B6A4012843A68F676B021BF"><enum>(2)</enum><header>Publishing of anonymized or redacted summaries</header><text>A Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes.</text></paragraph></subsection>
<subsection id="H379871CCE1A043978664E9E84C229F0C"><enum>(h)</enum><header>Modification or revocation</header><text>A Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if—</text> <paragraph id="H2ACE3F29B9EB4A6EB5A77D3F31832D8D"><enum>(1)</enum><text>the requesting financial institution made a material misstatement or omission of fact;</text></paragraph>
<paragraph id="HF5CE3BB92E804559AF238B0299936E1C"><enum>(2)</enum><text>there has been a change in controlling law; or</text></paragraph> <paragraph id="H14791E76D4384B34800CBE2675AFCC78"><enum>(3)</enum><text>the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued.</text></paragraph></subsection>
<subsection id="HD5461588CEEC4BEF87E991CF4205DD7A"><enum>(i)</enum><header>Reasonable fees</header><text>Each Federal financial institutions regulatory agency may establish and collect a reasonable fee for the processing and issuance of any written advice issued under this section, and such fee—</text> <paragraph id="H879709CAE51E46A39E47314C18D63C27"><enum>(1)</enum><text>shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request;</text></paragraph>
<paragraph id="H8F0586B39BF54B31B35A88359A2DD2B1"><enum>(2)</enum><text>may vary based on the complexity of the request or the size of the requesting institution; and</text></paragraph> <paragraph id="HC39CF9ECF75C4C89B86AA78999F4FFF6"><enum>(3)</enum><text>shall be prescribed by regulation.</text></paragraph></subsection>
<subsection id="H6FE3AAE0934B4698AF37583EA05AB07E"><enum>(j)</enum><header>Finality</header><text>Written advice issued under the procedures established under this section shall not be construed as a final agency action.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0C0C345B39024468994A78C7CFC97FD2"><enum>(c)</enum><header>Office of Independent Examination Review</header> <paragraph id="H9A3A1299D76541A8845A17684E2CD7E8"><enum>(1)</enum><header>In general</header><text>The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301 et seq.</external-xref>), as amended by subsection (b), is further amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H0113525A4F454DD8B49A3F7170C4F1C9">
<section id="H51B70E0106F848228205F186B08C4733"><enum>1015.</enum><header>Office of Independent Examination Review</header>
<subsection id="HA93DCDC77A7441BF87B2E1E4C895315E"><enum>(a)</enum><header>Establishment</header><text>There is established in the Council an Office of Independent Examination Review (the <quote>Office</quote>).</text></subsection> <subsection id="H1AC8A56D86B541ECB25DFB7B4B1F580A"><enum>(b)</enum><header>Board of Independent Examination Review</header> <paragraph id="H2AB47A97EC3B43D1A49C174E23B96A74"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The head of the Office shall be the Board of Independent Examination Review, which shall be comprised of 3 members, appointed by the President, by and with the advice and consent of the Senate.</text></paragraph>
<paragraph id="HDD3E6261C12F4C7CBC389EF2430C2181"><enum>(2)</enum><header>Qualifications</header><text display-inline="yes-display-inline">The President shall appoint 1 member of the Board from each of the following classes of individuals:</text> <subparagraph id="H5D54AF3222C04BDBAA02FA61555CCF0E"><enum>(A)</enum><text display-inline="yes-display-inline">Individuals who have been employed by a Federal financial institutions regulatory agency.</text></subparagraph>
<subparagraph id="HA094BE15436D48CCB3C9293C6BD4303B"><enum>(B)</enum><text display-inline="yes-display-inline">Individuals who are not, and were not during the previous 5-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank and who—</text> <clause id="H6C28292D51434179A2433041604C5AF6"><enum>(i)</enum><text display-inline="yes-display-inline">are a licensed attorney or a certified public accountant authorized to practice under the laws of a State, the District of Columbia, or a territory of the United States;</text></clause>
<clause id="HB0216391A9954137A60766A627C93A27"><enum>(ii)</enum><text>have academic or private sector experience relating to financial services; or</text></clause> <clause id="H733197DE4D9A418B8DDA882BC1028935"><enum>(iii)</enum><text display-inline="yes-display-inline">have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions.</text></clause></subparagraph>
<subparagraph id="H59742C6272FC4F679685200E0ECEEDA4"><enum>(C)</enum><text display-inline="yes-display-inline">Individuals with at least 10 years private sector financial services senior management-level experience.</text></subparagraph></paragraph> <paragraph id="HE6A825F16F574EE9A7722B05E4A89080"><enum>(3)</enum><header>Prohibition on certain individuals serving as a Board member</header><text>The President may not appoint an individual as a member of the Board if the individual—</text>
<subparagraph id="H774F994EEC734F4A88DD9875F022F40B"><enum>(A)</enum><text display-inline="yes-display-inline">is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or</text></subparagraph> <subparagraph id="HF10DE1C18F534A7E9B941C3FE65BC9C6"><enum>(B)</enum><text display-inline="yes-display-inline">is, or was during the previous 2-year period, employed by a financial institution.</text></subparagraph></paragraph>
<paragraph id="HCCFD2ECF64D04F46BD9278ABB666F958"><enum>(4)</enum><header>Consultation</header><text display-inline="yes-display-inline">In appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions.</text></paragraph> <paragraph id="H78FCBF172AEB4CE3A4F6E5520D9822C5"><enum>(5)</enum><header>Term</header> <subparagraph id="HD69047E4B4CE44B2B6959F693E4DEC5A"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Each member of the Board shall serve for a term of 3 years. Upon the expiration of a member’s terms of office, the member shall continue to serve until the member’s successor has been confirmed by the Senate.</text></subparagraph>
<subparagraph id="H27B09AAB626E4AF4A546F95EFE4E0463"><enum>(B)</enum><header>Term limitation</header><text>No individual may serve more than 2 full terms on the Board.</text></subparagraph></paragraph> <paragraph id="H7DFA4DAE543843ACB1DD3B640C7BD26A" display-inline="no-display-inline"><enum>(6)</enum><header>Political affiliation</header><text display-inline="yes-display-inline">Not more than 2 members of the Board shall be members of the same political party.</text></paragraph>
<paragraph id="H7C4AC563F5934ECD9A7252AD3B99C5B3"><enum>(7)</enum><header>Quorum</header>
<subparagraph id="H25DA4EA98B8A4319B5702A0FA2ED456F"><enum>(A)</enum><header>In general</header><text>3 members of the Board shall constitute a quorum.</text></subparagraph> <subparagraph id="HF3CA982D91D3497182A0D35843E2ADA3"><enum>(B)</enum><header>Initial quorum</header><text display-inline="yes-display-inline">During the 6-month period beginning on the date of enactment of this section, 1 member of the Board shall constitute a quorum until the Board has 3 members.</text></subparagraph></paragraph>
<paragraph id="HF1399D48A0204D6B98E3877C097A17F0"><enum>(8)</enum><header>Rate of pay</header><text display-inline="yes-display-inline">The annual rate of basic pay for the members of the Board shall be the rate of basic pay for Level IV of the Executive Schedule under section 5315 of title 5, United States Code. </text></paragraph></subsection> <subsection id="H469DE18747B64EEF87C758C15459C4D1"><enum>(c)</enum><header>Staffing</header><text>The Board is authorized to hire staff to support the activities of the Office of Independent Examination Review, and set the salaries of such staff. One-fifth of the costs and expenses of the Office, including the salaries of its employees, shall be paid by each of the Federal financial institutions regulatory agencies. Annual assessments for such share shall be levied by the Council based upon its projected budget for the year, and additional assessments may be made during the year if necessary.</text></subsection>
<subsection id="H35AD524A44384CEAAC78E22FDD07052F"><enum>(d)</enum><header>Duties</header><text>The Board shall—</text> <paragraph id="HBBB11517108B4CB89EDE7565FFD17496"><enum>(1)</enum><text>receive and, at the discretion of the Board, investigate complaints from financial institutions, their representatives, or another entity acting on behalf of such institutions, concerning completed examinations, examination practices, or examination reports;</text></paragraph>
<paragraph id="HEF1D0CD4AF8D46F88417D3086C15626F"><enum>(2)</enum><text>hold meetings, at least once every three months and in locations designed to encourage participation from all sections of the United States, with financial institutions, their representatives, or another entity acting on behalf of such institutions, to discuss examination procedures, examination practices, or examination policies;</text></paragraph> <paragraph id="H751C942829834F8ABD496FC50F4F53E2"><enum>(3)</enum><text display-inline="yes-display-inline">review examination procedures of the Federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency;</text></paragraph>
<paragraph id="H17549949FD21474684F7EE59EB8AC41E"><enum>(4)</enum><text display-inline="yes-display-inline">conduct a continuing and regular program of examination quality assurance on a sample for all examination types conducted by the Federal financial institutions regulatory agencies;</text></paragraph> <paragraph id="HE674FBF87B9A4F94893AA38BA22E7BCD"><enum>(5)</enum><text>carry out an independent review of any supervisory appeal initiated under section 1016; and</text></paragraph>
<paragraph id="H0DA579D846E44CF58B5ED24EE01E08AB"><enum>(6)</enum><text>report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council, on the reviews carried out pursuant to paragraphs (3) and (5), including compliance with the requirements set forth in section 1014 regarding timeliness of examination reports, and the Board’s recommendations for improvements in examination procedures, practices, and policies.</text></paragraph></subsection> <subsection id="H45E185D46F2448E9A90404335C68AA11"><enum>(e)</enum><header>Confidentiality</header> <paragraph id="H94D3F99C39EC4ACAB14EB8F79C7A98B5"><enum>(1)</enum><header>In general</header><text>The Board and the Council shall keep confidential—</text>
<subparagraph id="HE44B911F45384A5BB46D15B9AEB89716"><enum>(A)</enum><text>all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;</text></subparagraph> <subparagraph id="HBD5E3B28488A42A988364458671282DE"><enum>(B)</enum><text>all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and</text></subparagraph>
<subparagraph id="H9F74AAA45C414AB8BCAEE42E735BF9D4"><enum>(C)</enum><text display-inline="yes-display-inline">all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review.</text></subparagraph></paragraph> <paragraph id="HB31D2667CDB6462884E30EE5D6667B48"><enum>(2)</enum><header>Submission of information does not constitute a waiver</header><text display-inline="yes-display-inline">Section 18(x) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(x)</external-xref>) and section 205(j) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1785">12 U.S.C. 1785(j)</external-xref>) shall apply to the submission of information to the Board by a financial institution or a Federal financial institutions regulatory agency to the same extent as such sections 18(x) and 205(j) apply to the submission of information described in such sections 18(x) and 205(j).</text></paragraph>
<paragraph id="H7F40EB8DFE564938B1F18F6DBE773AFE"><enum>(3)</enum><header>Sharing of information without waiving privilege</header><text>The Board shall be considered a <quote>covered agency</quote> for purposes of section 11(t) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(t)</external-xref>).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H1C0D6304377F487BA1516728BA98AB5F"><enum>(2)</enum><header>Definitions</header><text>Section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3302">12 U.S.C. 3302</external-xref>) is amended—</text>
<subparagraph id="HB8972F7FC0324C0493FC3B9A2027BA65"><enum>(A)</enum><text>in paragraph (2), by striking <quote>and</quote> at the end; and</text></subparagraph> <subparagraph id="H81BE181EE7854B19A869414406BC2D98"><enum>(B)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H35AD3ACDDD3D47F7ABAF88767A39359E">
<paragraph id="H00E038FBB5C94D24A56AE337BD29FC3C"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>Board</term> means the Board of Independent Examination Review established under section 1015(b);</text></paragraph> <paragraph id="H033168E080AF4EB2B7F531E7B84756D6"><enum>(5)</enum><text display-inline="yes-display-inline">the term <term>material supervisory determination</term> has the meaning given such term in section 309(c) of the Riegle Community Development and Regulatory Improvement Act of 1994;</text></paragraph>
<paragraph id="H6757876390F4494091AECCACC6499A3B"><enum>(6)</enum><text>the term <term>insured depository institution</term> has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and</text></paragraph> <paragraph id="HB2F1D66DB0E9484A955C91BE7890666A"><enum>(7)</enum><text>the term <term>insured credit union</term> has the meaning given that term in section 101 of the Federal Credit Union Act.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="H123AFD8F8A02464D81D80F141D4A82D5"><enum>(d)</enum><header>Right to independent review of material supervisory determinations</header><text>The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301 et seq.</external-xref>), as amended by subsection (c), is further amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HA4274C89014D44BD998EA8823C0381DB"> <section id="H7571ED18E7C943148BFA8BA62F7B8414"><enum>1016.</enum><header>Right to independent review of material supervisory determinations</header> <subsection id="H7E3AC525AA0B49E59E86C64AC0E4B881"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">A financial institution shall have the right to obtain an independent review, as described in this section, of a material supervisory determination contained in a final report of examination. A Federal financial institutions regulatory agency and the Board may not conduct concurrent reviews.</text></subsection>
<subsection id="H6EFA39C61F9C43CCA2D81392F190EAF2"><enum>(b)</enum><header>Notice</header>
<paragraph id="H105B88E53D06441E81E6303088690C4A"><enum>(1)</enum><header>Timing</header><text>A financial institution seeking review of a material supervisory determination under this section shall file a written notice with the Board within 30 days after receiving the final report of examination that is the subject of such review.</text></paragraph> <paragraph id="H582B4592990F4B6BB013C935A7F500E9"><enum>(2)</enum><header>Extension</header><text display-inline="yes-display-inline">The institution may file a written request with the Board for an extension of the 60-day time period described under paragraph (1), which shall state good cause for granting the extension. Such request shall be granted in the sole discretion of the Board.</text></paragraph>
<paragraph id="H199F4CF543C841338B2E6413A72A2F44"><enum>(3)</enum><header>Identification of determination</header><text>The written notice shall—</text> <subparagraph id="HCCB2F389B9D44376AC994FB391222EB6"><enum>(A)</enum><text>identify the material supervisory determination that is the subject of the requested independent examination review;</text></subparagraph>
<subparagraph id="H1842F9A637974C799080A952514C99CA"><enum>(B)</enum><text display-inline="yes-display-inline">state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and</text></subparagraph> <subparagraph id="H944E4115B9004B26A2288F9D5A03CE12"><enum>(C)</enum><text>include—</text>
<clause id="H132D8687186D4ACC9162E42C37176F08"><enum>(i)</enum><text>a clear and complete statement of all relevant facts and issues;</text></clause> <clause id="H882357982A5A46C0981E9BAEA8D1A05C"><enum>(ii)</enum><text>all arguments that the institution wishes to present; and</text></clause>
<clause id="H79B9061184224970B881302814100644"><enum>(iii)</enum><text>all relevant and material documents in the possession of the institution that the institution wishes to be considered.</text></clause></subparagraph></paragraph> <paragraph id="H91296763650E47FE9D9DEBCF96409246"><enum>(4)</enum><header>Information made available to institution</header><text display-inline="yes-display-inline">A financial institution seeking a review of a material supervisory determination may, not later than 7 days after receiving the final examination report, request that the Federal financial institutions regulatory agency that made the material supervisory determination provide the financial institution with all examination and factual information relied upon by the Federal financial institutions regulatory agency in making the material supervisory determination. The Federal financial institutions regulatory agency shall provide such information to the financial institution not later than 14 days after receiving the request.</text></paragraph>
<paragraph id="H7CCC69F3F16C4BB2AE740797E4DB5EB9"><enum>(5)</enum><header>Submission of record</header><text display-inline="yes-display-inline">After receiving a written notice of review from a financial institution under this subsection, the Board shall direct the Federal financial institutions regulatory agency that made the material supervisory determination under review to file with the Board the supervisory record of the examination resulting in the material supervisory determination under review.</text></paragraph></subsection> <subsection id="HCFF9244438A241A5A61B788FA7531ACA"><enum>(c)</enum><header>Determination; right to hearing</header> <paragraph id="H4A89CD312D044BA5B4E198C53381F5E7"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Board shall—</text>
<subparagraph id="H4C45EAF2AEDD44E19187EE96CA2B071C"><enum>(A)</enum><text display-inline="yes-display-inline">determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or</text></subparagraph> <subparagraph id="H8833B2F6B33B42E7BA19047B5520D842"><enum>(B)</enum><text>at the election of the financial institution, conduct a hearing, which shall take place not later than 60 days after the petition for review is received by the Board, except that such 60-day period may be extended if both the financial institution and the Board agree to such extension.</text></subparagraph></paragraph>
<paragraph id="H1B3D8BDB92A247D097E90DB365B5DD1B"><enum>(2)</enum><header>Right to obtain testimony</header><text>A financial institution electing for a hearing under paragraph (1)(B) shall have the right the obtain testimony under oath from agency employees and obtain documents and other evidence at the hearing, or in advance of the hearing, according to procedures instituted by the Board consistent with those set forth under sections 556 and 557 of title 5, United States Code.</text></paragraph> <paragraph id="HD6671FA4C518414C9E3E929CBE3E5DBC"><enum>(3)</enum><header>Basis of decision</header><text display-inline="yes-display-inline">The Board shall issue a written decision based upon the record of the examination, supplemented by the record established before the Board and at any hearing.</text></paragraph>
<paragraph id="H7CB31AB3C1CD40E7BDEB05C6F7E5123C"><enum>(4)</enum><header>Standard of review</header><text display-inline="yes-display-inline">The Board’s review of a material supervisory determination being reviewed under this subsection shall be de novo, and the Board shall not defer to the opinions of the examiners or the Federal financial institutions regulatory agency, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record.</text></paragraph> <paragraph id="H95A1CFC8F12048F9BBB9571D4AE39DBF"><enum>(5)</enum><header>Policy matters</header><text display-inline="yes-display-inline">The Board shall conduct reviews under this section applying the policies, regulations, and interpretations of the Federal financial institutions regulatory agency that made the material supervisory determination under review in effect at the time the material supervisory determination was made.</text></paragraph></subsection>
<subsection id="HADFEC49C5B604859A3E4CA0151EE7E3F"><enum>(d)</enum><header>Final decision</header><text display-inline="yes-display-inline">A decision by the Board on an independent review under this section shall—</text> <paragraph id="H8EA8EC4A623949A8B59CFBCCB6A5F9E7"><enum>(1)</enum><text>be made not later than 60 days after the record has been closed; and</text></paragraph>
<paragraph id="H0180E49C81494E09B63E0B46D0313059"><enum>(2)</enum><text>be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review.</text></paragraph></subsection> <subsection id="HBF7D3F132DCC4BBDAEB5E0DF6772A4AD"><enum>(e)</enum><header>Referral of violations</header><text display-inline="yes-display-inline">If the Board, in carrying out this section, determines that a financial institution has violated a law or regulation, the Board shall refer such determination to the applicable Federal financial institutions regulatory agency.</text></subsection>
<subsection id="HD4889C0086E14B638ACEBD7BD938C6F8"><enum>(f)</enum><header>Annual report</header>
<paragraph id="H57CDFF81B8E24253B015E3A2392A440D"><enum>(1)</enum><header>In general</header><text>The Board shall report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council on actions taken under this section, including the types of issues that the Board has reviewed and the results of those reviews, including information on each final determination with respect to a material supervisory determination.</text></paragraph> <paragraph id="H088E4E2117B74D69B95235FE81BA652C"><enum>(2)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">In reporting under paragraph (1), the Board shall redact information about individual financial institutions and any confidential supervisory information or privileged information shared by financial institutions, and shall anonymize any un-redacted information that could, in the aggregate, identify a financial institution.</text></paragraph></subsection>
<subsection id="H78DF7863CF5649D1A9EFAF3E3B260EAC"><enum>(g)</enum><header>Retaliation prohibited</header>
<paragraph id="H83BBCB1E2B4C40669548954EBF8C1E23"><enum>(1)</enum><header>In general</header><text>A Federal financial institutions regulatory agency may not—</text> <subparagraph id="H6E5A1B3F13EF4B87868D073751560984"><enum>(A)</enum><text>retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or</text></subparagraph>
<subparagraph id="H24CC90984CFC4E6BBE3DF39D4D3A4E69"><enum>(B)</enum><text>delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that an appeal under this section is pending under this section.</text></subparagraph></paragraph> <paragraph id="HA421AE9C87934E2FA0C3FC5D4A67D40A"><enum>(2)</enum><header>Retaliation</header><text>For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.</text></paragraph></subsection>
<subsection id="H5E8C19621AB54F0F9484FDB1FB36576D"><enum>(h)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">The Board shall issue rules, consistent with subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code (commonly referred to as the <quote>Administrative Procedure Act</quote>), to establish procedures for hearings described under this section, including that—</text> <paragraph id="H824E8B5D4D3C4EA1A1707BB52AD0840C"><enum>(1)</enum><text display-inline="yes-display-inline">a financial institution may appear at the hearing personally or through counsel;</text></paragraph>
<paragraph id="H055C3061CE6840FA862129FFE5D1F4DC"><enum>(2)</enum><text display-inline="yes-display-inline">a financial institution may provide an oral and written presentation at the hearing;</text></paragraph> <paragraph id="HB0B581E0EC5449F0AC3AD2BAE2F0A95E"><enum>(3)</enum><text>the Board may ask questions of any person participating in the hearing;</text></paragraph>
<paragraph id="H995736CBE2744AF99ED267B0CF461A87"><enum>(4)</enum><text display-inline="yes-display-inline">the hearing shall not be governed by the Federal Rules of Evidence; and</text></paragraph> <paragraph id="H9C89383B3C6E420AB72BD471C2932EDD"><enum>(5)</enum><text>the Board shall have a verbatim transcript of the hearing prepared.</text></paragraph></subsection>
<subsection id="HB5DCD797876648468B284DB8EA2C1F56"><enum>(i)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this section may be construed—</text> <paragraph id="H8D6F2B47055F4175B9B639A3EA035336"><enum>(1)</enum><text>to affect the right of a Federal financial institutions regulatory agency to take enforcement or other supervisory actions related to a material supervisory determination under review under this section; or</text></paragraph>
<paragraph id="H8B1EDE5F18F847F18CC210892797197A"><enum>(2)</enum><text>to prohibit the review under this section of a material supervisory determination with respect to which there is an ongoing enforcement or other supervisory action. </text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H79ADD16D686F44159F69A94AB47AFBA5"><enum>(e)</enum><header>Additional amendments</header> <paragraph id="HAF1A7C14DF94425AA0EBDB5C91BD1886"><enum>(1)</enum><header>Regulatory appeals process, ombudsman, and alternative dispute resolution</header> <subparagraph id="H6CFCDB8C3BAE457B97EE075EB06A4194"><enum>(A)</enum><header>In general</header><text>Section 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4806">12 U.S.C. 4806</external-xref>) is amended—</text>
<clause id="HF6526B69C4234EEA87E71AFAE0A164BD"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="section" style="OLC">REGULATORY APPEALS PROCESS, OMBUDSMAN,</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">OMBUDSMAN</header-in-text></quote> (and by conforming the item relating to such section in the table of contents accordingly);</text></clause> <clause id="H05691313104749219D3C884AF4B0AAB7"><enum>(ii)</enum><text>by striking subsections (a), (b), and (c);</text></clause>
<clause id="H59E8819236CB44E18BEBFD46C1492E3A"><enum>(iii)</enum><text>by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively;</text></clause> <clause id="H382AC9877B6940B181DEE41BE1474579"><enum>(iv)</enum><text>in subsection (b), as so redesignated—</text>
<subclause id="H028DE2E25D1249C4BA91FE5FD2BC2829"><enum>(I)</enum><text>in paragraph (2)—</text> <item id="H6B1602CF68E5445890E7D5C7AF505ABB"><enum>(aa)</enum><text>in subparagraph (B), by striking <quote>and</quote> at the end;</text></item>
<item id="H82669206E7FD4A48BCD2BEA619E19E96"><enum>(bb)</enum><text>in subparagraph (C), by striking the period and inserting <quote>; and</quote>; and</text></item> <item id="HBB3F7A9BC8E145B9ADFA86EDE94DA504"><enum>(cc)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H2CC8850A6CF94B23B9E4C64F47E085CB">
<subparagraph id="H1B0F1279F9694FB0842E9A6244DF2608"><enum>(D)</enum><text>ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></item></subclause> <subclause id="H2B16810229A744E39FFEABADC1BBD5C2"><enum>(II)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H9C5122D626E840C8A6DA57380827F112" display-inline="no-display-inline">
<paragraph id="H310A6AA0459040EFBED8EF4FAE85EFEB"><enum>(6)</enum><header>Retaliation</header><text>For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause> <clause id="H6C16D8151974490C87FEDEAFB4D6DF77"><enum>(v)</enum><text>in paragraph (1)(A) of subsection (c), as so redesignated—</text>
<subclause id="HB3A0A11DDC2D4F8CBE7014FCBED02910"><enum>(I)</enum><text>in clause (ii), by striking <quote>; and</quote> and inserting a semicolon;</text></subclause> <subclause id="HDC53469189204077B1CE0035FC488E3C"><enum>(II)</enum><text>in clause (iii), by striking <quote>; and</quote> and inserting a semicolon; and</text></subclause>
<subclause id="H22424D7DF6EA4423B43B3A7921B6E713"><enum>(III)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HC933A4C3F838459081B84A1B5A56C8CC"> <clause id="H0E28A580E7C84FFCB9236E13D4702A7C"><enum>(iv)</enum><text>any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and</text></clause>
<clause id="H92B85427EA4142B2A5B7EEC588EF9EE2"><enum>(v)</enum><text>any suspension or removal of an institution’s status as eligible for expedited processing of applications, requests, notices, or filings on the grounds of a supervisory or compliance concern, regardless of whether that concern has been cited as a basis for a material supervisory determination or matter requiring attention in an examination report, provided that the conduct at issue did not involve violation of any criminal law; and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause></subparagraph> <subparagraph id="H71BA54469A884326913250BC354534FE"><enum>(B)</enum><header>Effect</header><text display-inline="yes-display-inline">Nothing in this subsection affects the authority of a Federal banking agency (as defined in section 304(b)) to take enforcement or other supervisory action.</text></subparagraph></paragraph>
<paragraph id="H3B2215FBFAAF4DD084C289D343142B2E"><enum>(2)</enum><header>Federal Credit Union Act</header><text>Section 205(j) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1785">12 U.S.C. 1785(j)</external-xref>) is amended by inserting <quote>the Bureau of Consumer Financial Protection,</quote> before <quote>the Administration</quote> each place that term appears.</text></paragraph> <paragraph id="H1A3F174827694AF796CBBA4BAD6C4793"><enum>(3)</enum><header>Federal Financial Institutions Examination Council Act</header><text>The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301 et seq.</external-xref>) is amended—</text>
<subparagraph id="HA126F75DA13548F8985407280D6908DC"><enum>(A)</enum><text>in section 1003 (<external-xref legal-doc="usc" parsable-cite="usc/12/3302">12 U.S.C. 3302</external-xref>)—</text> <clause id="H1CE5D017B829476DAC1542A7AC7D8874"><enum>(i)</enum><text>by striking paragraph (1) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HB385F2082EA94394A5EF3259EE3746D4">
<paragraph id="HCA19112AC96A4E9F95B2D07B6537F5B0"><enum>(1)</enum><text>the term <term>Federal financial institutions regulatory agencies</term>—</text> <subparagraph id="HEFFC39A822894AC7A151488989E1B7DC"><enum>(A)</enum><text>means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration; and</text></subparagraph>
<subparagraph id="H68BD6EC6D48E4DBCA4BAC2E7B1276F80"><enum>(B)</enum><text>includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="HF52617BDB9A144E5878080A2D61A6D7D"><enum>(ii)</enum><text>in paragraph (3), by striking the semicolon at the end and inserting <quote>, except that for purposes of sections 1013 through 1016, the term <term>financial institution</term> does not include a credit union that is not an insured credit union;</quote>;</text></clause></subparagraph>
<subparagraph id="H69357ADDD1D4461AA3697C92E3A70DD3"><enum>(B)</enum><text>in section 1004(a)(4) (<external-xref legal-doc="usc" parsable-cite="usc/12/3303">12 U.S.C. 3303</external-xref>), by striking <quote>Consumer Financial Protection Bureau</quote> and inserting <quote>Bureau of Consumer Financial Protection</quote>; and</text></subparagraph> <subparagraph id="HDB5DBE5C14354B3B866D839BF4D81723"><enum>(C)</enum><text>in section 1005 (<external-xref legal-doc="usc" parsable-cite="usc/12/3304">12 U.S.C. 3304</external-xref>)—</text>
<clause id="HA0EA7AF6E4924946A1EA51DC1D247081"><enum>(i)</enum><text>by striking <quote>One-fifth</quote> and inserting <quote>One-fourth</quote>; and</text></clause> <clause id="H2374295BFECF4A748374435FC1565028"><enum>(ii)</enum><text>by inserting <quote>described under section 1003(1)(A)</quote> after <quote>agencies</quote>.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H6A6FC6090F6045089546B48BA6E98502" display-inline="no-display-inline"><enum>(f)</enum><header>Election of forum for review of supervisory enforcement</header>
<paragraph id="HFBD91BE5A3E84E528FDD595367B2FA2C"><enum>(1)</enum><header>Federal Deposit Insurance Act</header><text>Section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>) is amended—</text> <subparagraph id="H7082C46A5A574AF0BA51FF7E60BD8291"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b), by adding at the end the following:</text>
<quoted-block style="OLC" id="H809903526A16496684C34E4868E80403" display-inline="no-display-inline">
<paragraph id="H4522D841F836483189A206582C6EC255"><enum>(11)</enum><header>Hearing</header><text display-inline="yes-display-inline">With respect to any notice properly issued and served upon a depository institution or institution-affiliated party under this subsection, such depository institution or institution-affiliated party shall be afforded a hearing before—</text> <subparagraph id="HA953200F4C414B0A9AB4AFF7C857D845"><enum>(A)</enum><text>the appropriate Federal banking agency; or</text></subparagraph>
<subparagraph id="H1539DA3F48A84045A1AE957E650608DA"><enum>(B)</enum><text>if such institution or person submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H72243343F83C46628813DCC033DE3187"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (e), by adding at the end the following:</text>
<quoted-block style="OLC" id="HA835706A15DD4CC2839B35F24B846240" display-inline="no-display-inline">
<paragraph id="HFB41F359B0204375B9635DAD737DF511"><enum>(8)</enum><header>Hearing</header><text display-inline="yes-display-inline">With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before—</text> <subparagraph id="H3C5CD73087424E28B94682AEA1C1F372"><enum>(A)</enum><text>the appropriate Federal banking agency; or</text></subparagraph>
<subparagraph id="HFB7C60F9CFE54737B9BD07887D8E8093"><enum>(B)</enum><text>if such party submits a request for such hearing and forum within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice, including those authorized under this subsection.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H4527DFC09FDE4313835AAFEADDEA9026"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (h)—</text>
<clause id="H315E6A65925C416CB741DDCEA0D5D507"><enum>(i)</enum><text>in paragraph (1), by striking <quote>(other than the hearing provided for in subsection (g)(3) of this section)</quote> and inserting <quote>(other than the hearing provided for in subsection (b)(11)(B), (e)(8)(B), (g)(3), or (i)(2)(H)(ii))</quote>; and</text></clause> <clause id="H551342C63F484ECEAF721A02E0B16224"><enum>(ii)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H6840900804344815ADE925BA1FB04650" display-inline="no-display-inline">
<paragraph id="H9E58E1442DBE499896E635B299CF8A1B" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">Any hearing provided for in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.</text></paragraph> <paragraph id="H8CFC91467B534752BBE6A8D9BA9D593D" indent="up1"><enum>(5)</enum><text>Any final decision of a United States district court made pursuant to a respondent’s election under subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="H29C338DAE2674457911EC05AC68AA660"><enum>(D)</enum><text display-inline="yes-display-inline">in subsection (i)(2)—</text> <clause id="H7D7D44DA9DA04845AF9401ACFEC26C12"><enum>(i)</enum><text display-inline="yes-display-inline">by amending subparagraph (E)(ii) to read as follows:</text>
<quoted-block style="OLC" id="HB6814F01709B49269DB1CC076AE3E2FB" display-inline="no-display-inline">
<clause id="H3BFC0CA14A474A4598C1BA6010870439"><enum>(ii)</enum><header>Finality of assessment</header><text display-inline="yes-display-inline">If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></clause> <clause id="HC0B7E16BAFB447F598F4502B1331A8B1"><enum>(ii)</enum><text>by amending subparagraph (H) to read as follows:</text>
<quoted-block style="OLC" id="HE3CF424C457D449EADBA17B3AD9236AC" display-inline="no-display-inline">
<subparagraph id="HCAC93693EDA3499485B5A206386C0AF6"><enum>(H)</enum><header>Hearing</header><text display-inline="yes-display-inline">The insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—</text> <clause id="H83969027265846B8B1D59FC3451299D3"><enum>(i)</enum><text>an agency, if such institution or person submits a request for such hearing within 20 days after the issuance of the notice of assessment; or</text></clause>
<clause id="HE5BF9ED65EBC49FFB36534FBDAAEA4C7"><enum>(ii)</enum><text>the appropriate United States district court, if such institution or person submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="HF6EDB48438854B16A143A1120FAB8CAD"><enum>(iii)</enum><text>by amending subparagraph (I)(ii) to read as follows:</text>
<quoted-block style="OLC" id="H01B9539BE4B24018A0DFE25B0986E334" display-inline="no-display-inline">
<clause id="HF43914EC5A1A45488C0E7D399277D459"><enum>(ii)</enum><header>Appropriateness of penalty not reviewable</header><text display-inline="yes-display-inline">In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="H623B35C4A1F6454C807E8B72971B028A"><enum>(E)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H1DA06547712C4BCD873EF60C236370EE" display-inline="no-display-inline">
<subsection id="H1A159B35F434424FA1A46CB7D5A40235"><enum>(x)</enum><header>Savings clause</header><text display-inline="yes-display-inline">Nothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to—</text> <paragraph id="H96DF1CA78A544192B9482B6E24E04D42"><enum>(1)</enum><text>limit the authority of a Federal banking agency to initiate an administrative enforcement action; or</text></paragraph>
<paragraph id="HFDCE475E76B54C73897A7588BBB4A2CA"><enum>(2)</enum><text>impair the validity of any consent order.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H8E10683734494730910185EEB0E7058D"><enum>(2)</enum><header>Federal Credit Union Act</header><text display-inline="yes-display-inline">Section 206 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1786">12 U.S.C. 1786</external-xref>) is amended—</text>
<subparagraph id="H4E80ED6470F24C73AA1CF29F40B0F179"><enum>(A)</enum><text>in subsection (e), by adding at the end the following:</text> <quoted-block style="OLC" id="HD0294A328E4A4CEE801B49EB293393DE" display-inline="no-display-inline"> <paragraph id="H863F7DB47BA743D9B3E58F9727279E8B"><enum>(5)</enum><header>Hearing</header><text display-inline="yes-display-inline">With respect to any notice properly issued and served upon an insured credit union, credit union which has insured accounts, or an institution-affiliated party under this subsection, such insured credit union, credit union which has insured accounts, or institution-affiliated party shall be afforded a hearing before—</text>
<subparagraph id="HD78DFACB50FF4DEF946D64ED341499AE"><enum>(A)</enum><text>the Administration; or</text></subparagraph> <subparagraph id="HCD6B7AA8C32F4D8799282E3D0CBF0E39"><enum>(B)</enum><text display-inline="yes-display-inline">if such insured credit union, credit union which has insured accounts, or institution-affiliated party submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H28F9AF500BAC493B986D0227C85B3B7A"><enum>(B)</enum><text>in subsection (g), by adding at the end the following:</text> <quoted-block style="OLC" id="H202D059FC9E040D4A4EFE5DA40A668B2" display-inline="no-display-inline"> <paragraph id="H5573BA91E7DF453C860EF8ECA4A33059"><enum>(8)</enum><header>Hearing</header><text display-inline="yes-display-inline">With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before—</text>
<subparagraph id="H4770A16ABB3D4D74B2F694B58FDCA8D5"><enum>(A)</enum><text>the Administration; or</text></subparagraph> <subparagraph id="H3838A52305CE4965B1ED71ED39BC5518"><enum>(B)</enum><text display-inline="yes-display-inline">if such institution-affiliated party submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H7C92022FE65C42F7A89CED1671A3840B"><enum>(C)</enum><text>in subsection (j)—</text> <clause id="HAA5C3BB234704F01B7E3CBFE83A5FC48"><enum>(i)</enum><text>in paragraph (1), by striking <quote>(other than the hearing provided for in subsection (i)(3) of this section)</quote> and inserting <quote>(other than the hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii))</quote>; and</text></clause>
<clause id="HCB00966FD9C145E7893EA7D976F3E9C8"><enum>(ii)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H630DD251F6494725AEFEA1400CD144BE" display-inline="no-display-inline"> <paragraph id="HF5355C235CC64E99AE8233F1E368A747" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">Any hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.</text></paragraph>
<paragraph id="HF0804FCF16DD4E399BE444ADAA2D8681" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">Any final decision of a United States district court made pursuant to a respondent’s election under subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="H14150FE4F7C541A9B0F6E9C1803ADBF9"><enum>(D)</enum><text display-inline="yes-display-inline">in subsection (k)(2)—</text>
<clause id="H7C402EBECCA740CFB7B9F14024859E33"><enum>(i)</enum><text display-inline="yes-display-inline">by amending subparagraph (E)(ii) to read as follows:</text> <quoted-block style="OLC" id="H1BDC23FB50EA465CA55B3FA9961495C3" display-inline="no-display-inline"> <clause id="HD8D3BA3F1806468E9E0860485627FDCC"><enum>(ii)</enum><header>Finality of assessment</header><text display-inline="yes-display-inline">If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></clause>
<clause id="H89228BC8DA674ABEBE59D1E78D3FD2F7"><enum>(ii)</enum><text>by amending subparagraph (H) to read as follows:</text> <quoted-block style="OLC" id="HA07DFC0408664E6C9249B097C8A402C5" display-inline="no-display-inline"> <subparagraph id="H7E11C4E0241145768A4356DE989D5972"><enum>(H)</enum><header>Hearing</header><text display-inline="yes-display-inline">The insured credit union or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—</text>
<clause id="H38B9834B5198443AB3BA6EC47B52A51C"><enum>(i)</enum><text display-inline="yes-display-inline">the Administration, if such insured credit union or institution-affiliated party submits a request for such hearing within 20 days after the issuance of the notice of assessment; or</text></clause> <clause id="HC8F0F47551C84C308D1916E13FB18886"><enum>(ii)</enum><text display-inline="yes-display-inline">the appropriate United States district court, if such insured credit union or institution-affiliated party submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause>
<clause id="H614063BD7D334C8394215E953434EE71"><enum>(iii)</enum><text>by amending subparagraph (I)(ii) to read as follows:</text> <quoted-block style="OLC" id="H25081F0CEAE24F6CB1E30C23996A90CB" display-inline="no-display-inline"> <clause id="HBB47E909852C4C45AC17353A941A5F2C"><enum>(ii)</enum><header>Appropriateness of penalty not reviewable</header><text display-inline="yes-display-inline">In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="HBDD79EF0D0B84F87BCFA8099AE4B0F0B"><enum>(E)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HCBD2D477BF7D4812932957D9F4999987" display-inline="no-display-inline"> <subsection id="H373CEF96A960433D9D1AC39D559D5BF8"><enum>(x)</enum><header>Savings clause</header><text display-inline="yes-display-inline">Nothing in subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii) shall be construed to—</text>
<paragraph id="HC5F9EFD9FB204F3E800F77330FFAF481"><enum>(1)</enum><text>limit the authority of the Administration to initiate an administrative enforcement action; or</text></paragraph> <paragraph id="HD8BC5E72CEBD499F99C775A8BAD6CA78"><enum>(2)</enum><text>impair the validity of any consent order.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection></section>
<section id="H445A6C81A4EE489CAAE2771B4B9EDFAD"><enum>303.</enum><header>Supervisory Modifications for Appropriate Risk-based Testing</header>
<subsection id="HFDA4E76CD3BD4B168E3BC8D8F4FEF7B5"><enum>(a)</enum><header>Examination relief for certain well managed and well capitalized financial institutions</header>
<paragraph id="HB7F0059202434A789F606EE5245BDC6C"><enum>(1)</enum><header>Insured depository institutions</header><text display-inline="yes-display-inline">Section 10(d) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1820">12 U.S.C. 1820(d)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H684D4B00449947D09E8C13298557AC83" display-inline="no-display-inline"> <paragraph id="HEBCDA8C6015A4DDCA8359312AC25A36B"><enum>(11)</enum><header>Examination relief for certain well managed and well capitalized insured depository institutions</header> <subparagraph id="H6C945FE560DA4A898CC714714D9F445B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding paragraphs (1) and (2), the following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets:</text>
<clause id="H54E8D991B1944E72AE6F7354DDF06F99"><enum>(i)</enum><header>Alternating limited-scope examinations</header><text display-inline="yes-display-inline">After an insured depository institution receives a full-scope, on-site examination from the appropriate Federal banking agency, the next examination of the insured depository institution by the appropriate Federal banking agency shall be a limited-scope examination, as determined by the appropriate Federal banking agency.</text></clause> <clause id="HB3A19E2B42DE48B4AF01FADDEF2052EB"><enum>(ii)</enum><header>Combined examinations</header><text display-inline="yes-display-inline">If an insured depository institution is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the appropriate Federal banking agency shall, upon request of the insured depository institution, combine two or three such examinations, as specified by the insured depository institution, and carry them out at the same time.</text></clause></subparagraph>
<subparagraph id="H3EDDD71667BB483FA7127C0034C570E7"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to an insured depository institution if—</text> <clause id="H041B1EEF9C914D4FBC2D00E3FA65FB98" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or</text></clause>
<clause id="H2EB42A0FA3AE452E95838F905D8BF8E2"><enum>(ii)</enum><text display-inline="yes-display-inline">a person acquired control of the insured depository institution since the most recent full-scope, on-site examination of the insured depository institution from the appropriate Federal banking agency.</text></clause></subparagraph> <subparagraph id="H127572543EF34A908E3E0878D1BBA7F6"><enum>(C)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">Not later than 12 months after the date of enactment of this paragraph, the Federal banking agencies shall issue rules to carry out subparagraph (A), including, with respect to an insured depository institution described under subparagraph (A), to—</text>
<clause id="H58CD2908946D4C4CA3C7AF3C79ED0B2A"><enum>(i)</enum><text>establish procedures for the limited-scope examinations described in subparagraph (A)(i);</text></clause> <clause id="HF93CD61F2DA2465B80C36A1E8CF02936"><enum>(ii)</enum><text display-inline="yes-display-inline">establish procedures for reviewing insured depository institutions described under subparagraph (A), that—</text>
<subclause id="H813DA1B5685A4FCDBCBA981141711F9B"><enum>(I)</enum><text>experience material changes in financial condition or operational risk profile between scheduled examinations; or</text></subclause> <subclause id="H3118265E302C4F8BAAAEB384C0AAF530"><enum>(II)</enum><text display-inline="yes-display-inline">have failed to comply with Federal or State banking laws and regulations; and</text></subclause></clause>
<clause id="H514E0C370B4F43E381D79E04563A19AC"><enum>(iii)</enum><text display-inline="yes-display-inline">balance the goals of streamlining the examination cycle for individual insured depository institutions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured depository institutions and compliance with all applicable laws and regulations.</text></clause></subparagraph> <subparagraph id="HCCFF4C4C175447778DA1339941A5B5F3"><enum>(D)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this paragraph may be construed to limit the authority of a Federal banking agency to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured depository institution if the Federal banking agency determines such monitoring, reviews, or examinations are appropriate to ensure safety and soundness or compliance with applicable laws.</text></subparagraph>
<subparagraph id="HA0B976AB09DA4A2B9C40081A6258EA00"><enum>(E)</enum><header>Definitions</header><text>In this paragraph:</text> <clause id="H4956345B3DC1480393B074124E07397C"><enum>(i)</enum><header>Consumer compliance examination</header><text display-inline="yes-display-inline">The term <term>consumer compliance examination</term> means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).</text></clause>
<clause id="H3CDF7DAE9A3D40BBB455B1E66C9B67F5"><enum>(ii)</enum><header>Well capitalized</header><text display-inline="yes-display-inline">The term <term>well capitalized</term> has the meaning given that term in section 38(b).</text></clause> <clause id="H019EE3B5299E4F93A1C6051EBD5B2395"><enum>(iii)</enum><header>Well managed</header><text display-inline="yes-display-inline">With respect to an insured depository institution, the term <term>well managed</term> means that, when the institution was most recently examined by the appropriate Federal banking agency, the institution was found to be well managed, and the institution’s composite condition was found to be satisfactory or outstanding.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H73F578480CFF4585846EF028493385A9"><enum>(2)</enum><header>Insured credit unions</header><text display-inline="yes-display-inline">Section 204 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1784">12 U.S.C. 1784</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H66CC68B07F6B44C78EF065C256CAE4C1" display-inline="no-display-inline"> <subsection id="HC740589B58D94BF3A5C36FC6DC91F292"><enum>(h)</enum><header>Examination relief for certain well managed and well capitalized insured credit unions</header> <paragraph id="HB498F98B883A435E84F0A29C116264E5"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets:</text>
<subparagraph id="H405093B8457542239B4626A62390D36C"><enum>(A)</enum><header>Alternating limited-scope examinations</header><text display-inline="yes-display-inline">After an insured credit union receives a full-scope, on-site examination from the National Credit Union Administration, the next examination of the insured credit union by the National Credit Union Administration shall be a limited-scope examination, as determined by the National Credit Union Administration.</text></subparagraph> <subparagraph id="H32B430C92ED74ED286881CAC4B6564DB"><enum>(B)</enum><header>Combined examinations</header><text display-inline="yes-display-inline">If an insured credit union is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the National Credit Union Administration shall, upon request of the insured credit union, combine two or three such examinations, as specified by the insured credit union, and carry them out at the same time.</text></subparagraph></paragraph>
<paragraph id="H2DEC1B4F5C4045999250B8FE6F3DCF1E"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to an insured credit union if the insured credit union is currently subject to a formal enforcement proceeding or order by the National Credit Union Administration.</text></paragraph> <paragraph id="H4B06ACEA63014FEDA7C87FC1F11013CD"><enum>(3)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">Not later than 12 months after the date of enactment of this subsection, the National Credit Union Administration shall issue rules to carry out paragraph (1), including, with respect to an insured credit union described under paragraph (1), to—</text>
<subparagraph id="HD48BEC5C5A3641569D3F3B93C9E14B5E"><enum>(A)</enum><text>establish procedures for the limited-scope examinations described in paragraph (1)(A);</text></subparagraph> <subparagraph id="H8BE530FAABCD4EB39389B5BE5F987813"><enum>(B)</enum><text display-inline="yes-display-inline">establish procedures for reviewing insured credit unions that—</text>
<clause id="H021AF9F8959C49A79D9959366873AAF8"><enum>(i)</enum><text>experience material changes in financial condition or operational risk profile between scheduled examinations; or</text></clause> <clause id="HF4F05319771445C68B54BABC87C15F87"><enum>(ii)</enum><text display-inline="yes-display-inline">have failed to comply with Federal or State banking laws and regulations; and</text></clause></subparagraph>
<subparagraph id="HAB7275BCEB6248D08AF950063BAAAD73"><enum>(C)</enum><text display-inline="yes-display-inline">balance the goals of streamlining the examination cycle for individual insured credit unions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured credit unions and compliance with all applicable laws and regulations.</text></subparagraph></paragraph> <paragraph id="H2B388D7D879E4930BA629776EA88A414"><enum>(4)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this subsection may be construed to limit the authority of the National Credit Union Administration to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured credit union if the National Credit Union Administration determines such monitoring, reviews, or examinations are appropriate to ensure safety and soundness or compliance with applicable laws.</text></paragraph>
<paragraph id="HFF60525CFE954D27AC73483D7BAEE255"><enum>(5)</enum><header>Definitions</header><text>In this paragraph:</text> <subparagraph id="HFA02A19D44444175A1CBD161B45C26FF"><enum>(A)</enum><header>Consumer compliance examination</header><text display-inline="yes-display-inline">The term <term>consumer compliance examination</term> means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).</text></subparagraph>
<subparagraph id="HB6BD9031AF97489084FF6E9980445F86"><enum>(B)</enum><header>Well capitalized</header><text display-inline="yes-display-inline">The term <term>well capitalized</term> has the meaning given that term in section 216(c).</text></subparagraph> <subparagraph id="H0887010A35A8482B8EB77B23F1865182"><enum>(C)</enum><header>Well managed</header><text display-inline="yes-display-inline">With respect to an insured credit union, the term <term>well managed</term> means that, when the credit union was most recently examined by the National Credit Union Administration, the credit union was found to be well managed, and the credit union’s composite condition was found to be satisfactory or outstanding.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H44DEA2C3B6B84B63BAFDEAC8E0ACA61D" display-inline="no-display-inline"><enum>(b)</enum><header>Examination practices</header>
<paragraph id="HE89B89D3F05E43738CAF2383518B2E56"><enum>(1)</enum><header>Insured depository institutions</header><text display-inline="yes-display-inline">Section 10(d) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1820">12 U.S.C. 1820(d)</external-xref>), as amended by subsection (a)(1), is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H952BA292B1A1419795BE5D55FB53D0A7" display-inline="no-display-inline"> <paragraph id="H49C63C17477B45FD94C74D8B6B3281F1"><enum>(12)</enum><header>Examination practices</header><text display-inline="yes-display-inline">With respect to on-site examination of an insured depository institution with less than $6,000,000,000 in total assets, the appropriate Federal banking agency shall—</text>
<subparagraph id="H5A8DF82FC7A6486198F18FCB25F1A6F9"><enum>(A)</enum><text display-inline="yes-display-inline">ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;</text></subparagraph> <subparagraph id="H7ED17F2663F944A2915DFD504BCE7388"><enum>(B)</enum><text display-inline="yes-display-inline">make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the institution to carry out the examination;</text></subparagraph>
<subparagraph id="H3562336E2D034036858885215B69ADD9"><enum>(C)</enum><text display-inline="yes-display-inline">make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and</text></subparagraph> <subparagraph id="H69DB5E5B5B2C47E4AB3C2ECDBED89E80"><enum>(D)</enum><text display-inline="yes-display-inline">to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination.</text></subparagraph></paragraph>
<paragraph id="H78ECFD9A367E4554A2E13D208CA73B59"><enum>(13)</enum><header>Report</header><text display-inline="yes-display-inline">In its annual report to Congress, each Federal banking agency shall include—</text> <subparagraph id="H08971C730E0C4371ADF263D6F51981A2"><enum>(A)</enum><text>information on how the agency is complying with paragraphs (11) and (12); and</text></subparagraph>
<subparagraph id="H477FB0C0D3354B499D52CF9239057236"><enum>(B)</enum><text>aggregate data summarizing the agency’s examination practices with respect to insured depository institutions with less than $6,000,000,000 in total assets, including—</text> <clause id="H83FD15C40717497EB74DD8DA2CEC7B58"><enum>(i)</enum><text display-inline="yes-display-inline">the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;</text></clause>
<clause id="HA8D1C4DBD3A64E5E911C8A43AACEDB95"><enum>(ii)</enum><text>the average number of examiners utilized; and</text></clause> <clause id="HE24A1E2B628E4BE5A235B0C0117CD553"><enum>(iii)</enum><text>the average amount of time the agency spends visiting such institutions for on-site examinations.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H0E8A074DE805406EBC8BB1F566BB5DFD"><enum>(2)</enum><header>Insured credit unions</header><text display-inline="yes-display-inline">Section 204 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1784">12 U.S.C. 1784</external-xref>), as amended by subsection (a)(2), is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H28A14BF73D914B92A31FF18930BF6869" display-inline="no-display-inline"> <subsection id="H95AD72B709C54888BFB3C302DF2348F8"><enum>(i)</enum><header>Examination practices</header><text display-inline="yes-display-inline">With respect to on-site examination of an insured credit union with less than $6,000,000,000 in total assets, the National Credit Union Administration shall—</text>
<paragraph id="HE8592A1A7C8B4B468C7BAC33390958B7"><enum>(1)</enum><text display-inline="yes-display-inline">ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;</text></paragraph> <paragraph id="H15394BFDDBA746B3B5080D13882EC617"><enum>(2)</enum><text display-inline="yes-display-inline">make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the credit union to carry out the examination;</text></paragraph>
<paragraph id="HA9F9EF25F6484F36989545B06C34AE57"><enum>(3)</enum><text display-inline="yes-display-inline">make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and</text></paragraph> <paragraph id="HAD9AE6FA09AC4527A9B34A00A9FB1F6C"><enum>(4)</enum><text display-inline="yes-display-inline">to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination.</text></paragraph></subsection>
<subsection id="H673519A70216410B8C60DAF5C99D3BC8"><enum>(j)</enum><header>Report</header><text display-inline="yes-display-inline">In its annual report to Congress, the National Credit Union Administration shall include—</text> <paragraph id="HAA96315C220E4CC48310E72FFA00C689"><enum>(1)</enum><text display-inline="yes-display-inline">information on how the Administration is complying with subsections (h) and (i); and</text></paragraph>
<paragraph id="H22FDE33A56DF49B681BB3530212DA40F"><enum>(2)</enum><text display-inline="yes-display-inline">aggregate data summarizing the Administration’s examination practices with respect to insured credit unions with less than $6,000,000,000 in total assets, including—</text> <subparagraph id="HE80B624F3A3D416EA4736E1EA2079B4D"><enum>(A)</enum><text display-inline="yes-display-inline">the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;</text></subparagraph>
<subparagraph id="H7A90BE257CAC4C22A6683246D82200FE"><enum>(B)</enum><text>the average number of examiners utilized; and</text></subparagraph> <subparagraph id="HDD4AD9D612654AD18C9C63966650FE30"><enum>(C)</enum><text display-inline="yes-display-inline">the average amount of time the Administration spends visiting such credit unions for on-site examinations.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>
<section id="H490DAB8CAAA24426AC2BF36B08086DDC"><enum>304.</enum><header>Financial Integrity and Regulation Management</header>
<subsection id="HBDDA9B3FA7F44DDFBA54AA9D5B1144FB"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text> <paragraph id="HCCC6AFDF25C34FBD9979A1244A198010"><enum>(1)</enum><text>the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions;</text></paragraph>
<paragraph id="H99196C97706445A7B762CE111D94C169"><enum>(2)</enum><text>all federally legal businesses and law-abiding citizens regardless of political ideology should have equal opportunity to obtain financial services and should not face unlawful discrimination in obtaining such services;</text></paragraph> <paragraph id="HCD9096089ACB477F9068A3D32B85218B"><enum>(3)</enum><text>financial service providers are private entities entitled to provide services to whichever customers they so choose, provided that those decisions do not violate the law;</text></paragraph>
<paragraph id="H1D7EFF0E1596447A8156E1493C5BB99D"><enum>(4)</enum><text>financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence;</text></paragraph> <paragraph id="HA071B09AFA4C499781386486074441AB"><enum>(5)</enum><text>the use of reputational risk in supervisory frameworks encourages Federal banking agencies to regulate depository institutions based on the subjective view of negative publicity and provides cover for the agencies to implement their own political agenda unrelated to the safety and soundness of a depository institution;</text></paragraph>
<paragraph id="H92863DFB7AC64F4587033E598600E259"><enum>(6)</enum><text>Federal banking agencies have in fact used reputational risk to limit access of federally legal businesses and law-abiding citizens to financial services in 2018 when the Federal Deposit Insurance Corporation acknowledged that the agency used reputational risk reviews to limit access to financial services by certain industries, commonly known as <quote>Operation Choke Point</quote>; and</text></paragraph> <paragraph id="H072152E33FEF4042BE863759C811BC45"><enum>(7)</enum><text>reputational risk does not appear in any statute and is an unnecessary and improper use of supervisory authority that does not contribute to the safety and soundness of the financial system.</text></paragraph></subsection>
<subsection id="H58349BE0FA2E4FBDBA3B644E454A6B70"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H3E622B901ED6428C8B83AB0FD49B0A88"><enum>(1)</enum><header>Depository institution</header><text>The term <term>depository institution</term>—</text>
<subparagraph id="H16886339B09A4FD398C7617B1BE1F43F"><enum>(A)</enum><text>has the meaning given the term in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>);</text></subparagraph> <subparagraph id="H96C744E340FF4E0C9BF63FC8CE8CA4E9"><enum>(B)</enum><text display-inline="yes-display-inline">includes a depository institution holding company, as such term is defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text></subparagraph>
<subparagraph id="H46A2C886A7BB4A84A5B765897F52E4E5"><enum>(C)</enum><text display-inline="yes-display-inline">includes an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>).</text></subparagraph></paragraph> <paragraph id="HCC1774EBE05A44D8ACE1CFC197DFE21B"><enum>(2)</enum><header>Federal banking agency</header><text>The term <term>Federal banking agency</term>—</text>
<subparagraph id="HB5B95B0F988C4F9BAEACB9D96C5FBC28"><enum>(A)</enum><text>has the meaning given the term in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text></subparagraph> <subparagraph id="H1F1844369BA34FA3A4FB0DE3EAF0CDD7"><enum>(B)</enum><text>includes—</text>
<clause id="H163A51EDCFDF4E40B638538427209464" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">the National Credit Union Administration; and</text></clause> <clause id="HD6422646970C43858B7558CA2A26BD6F" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>the Bureau of Consumer Financial Protection.</text></clause></subparagraph></paragraph>
<paragraph id="H988E0ED34BD34C198DBE8E2855E854CB"><enum>(3)</enum><header>Foreign terrorist organization</header><text display-inline="yes-display-inline">The term <term>foreign terrorist organization</term> means a foreign organization that is designated by the Secretary of State in accordance with section 219 of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1189">8 U.S.C. 1189</external-xref>).</text></paragraph> <paragraph id="H51A467F34ACE40E0AAD2B4B6741E7CBB"><enum>(4)</enum><header>Reputational risk</header><text display-inline="yes-display-inline">The term <term>reputational risk</term> means the potential that negative publicity or negative public opinion regarding a depository institution’s business practices, whether true or not, will cause a decline in confidence in the institution or a decline in the customer base, costly litigation, or revenue reductions or otherwise adversely impact the depository institution. The previous sentence does not apply to negative publicity or negative public opinion regarding an institution’s business practices where such practices involve unlawful transactions in connection with state sponsors of terrorism or foreign terrorist organizations.</text></paragraph>
<paragraph id="HE931F697E6AC4344B336603D37980B63"><enum>(5)</enum><header>State sponsors of terrorism</header><text display-inline="yes-display-inline">The term <term>state sponsors of terrorism</term> means a country, the government of which has been determined by the Secretary of State to have repeatedly provided support for acts of international terrorism, for purposes of—</text> <subparagraph id="HD3700B7CFAAD44F68F01E267A1BB7BBF"><enum>(A)</enum><text>section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (<external-xref legal-doc="usc" parsable-cite="usc/50/4813">50 U.S.C. 4813(c)(1)(A)(i)</external-xref>);</text></subparagraph>
<subparagraph id="H4021101DAF16492884E91FE35372593F"><enum>(B)</enum><text>section 620A of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2371">22 U.S.C. 2371</external-xref>);</text></subparagraph> <subparagraph id="H70A0FEB7A2674607A5352CFAA6910AAD"><enum>(C)</enum><text>section 40(d) of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2780">22 U.S.C. 2780(d)</external-xref>); or</text></subparagraph>
<subparagraph id="HEC56E32FA216422F8FDFC38275BC4D28"><enum>(D)</enum><text>any other provision of law.</text></subparagraph></paragraph></subsection> <subsection id="HDC392EC355214DE68808D2CCE435E247" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Study on reputational risk</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the enactment of this Act, each Federal banking agency shall—</text>
<paragraph id="H91B91DFE5F054AD7A5FBFB310D7D0B4F" commented="no"><enum>(1)</enum><text>carry out a study to evaluate the use of reputational risk in the supervision of depository institutions; and</text></paragraph> <paragraph id="H8A048DD9677649C4B34E28AE18DECC8B" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">determine whether the removal of reputational risk in the supervision of depository institutions would threaten the safety and soundness of those depository institutions.</text></paragraph></subsection>
<subsection id="HBD6461871B4E4424ACE803DD1EADB16D"><enum>(d)</enum><header>Removal of reputational risk as a consideration in the supervision of depository institutions</header><text display-inline="yes-display-inline">If a Federal banking agency determines, under subsection (c), that the removal of reputational risk in the supervision of depository institutions would not threaten the safety and soundness of those depository institutions, the Federal banking agency shall remove from any guidance, rule, examination manual, or similar document established by the agency any reference to reputational risk, or any term substantially similar, regarding the supervision of depository institutions such that reputational risk, or any term substantially similar, is no longer taken into consideration by the Federal banking agency when examining and supervising a depository institution.</text></subsection> <subsection id="HD132ADF1C20F41B092C5960D7325C1CA"><enum>(e)</enum><header>Prohibition</header><text display-inline="yes-display-inline">If a Federal banking agency determines, under subsection (c), that the removal of reputational risk in the supervision of depository institutions would not threaten the safety and soundness of those depository institutions, the agency may not engage in rulemaking, the issuance of guidance, supervision activities, or enforcement activities related to the reputational risk of a depository institution or the managing of reputational risk by a depository institution, including—</text>
<paragraph id="HF00051E49C144DD6BF4C22E96E9EC5D6"><enum>(1)</enum><text display-inline="yes-display-inline">establishing any rule, regulation, requirement, standard, or supervisory expectation concerning or related to the reputational risk of a depository institution, or the management thereof, whether binding or not;</text></paragraph> <paragraph id="H710B8CF4A42B41EDBB34DE33BC6503BB"><enum>(2)</enum><text display-inline="yes-display-inline">conducting any examination, assessment, data collection, or other supervisory exercise concerning or related to reputational risk of a depository institution, or the management thereof;</text></paragraph>
<paragraph id="H94F8B764E2214F0F8B96CB812C58EA0D"><enum>(3)</enum><text display-inline="yes-display-inline">issuing any examination finding, supervisory criticism, or other supervisory or examination communication concerning or related to reputational risk of a depository institution, or the management thereof;</text></paragraph> <paragraph id="HF29D07ACE14D4FE2AF0D01DF6DD9789A"><enum>(4)</enum><text display-inline="yes-display-inline">making any supervisory ratings decision or determination that is based, in whole or in part, on any matter concerning or related to reputational risk of a depository institution, or the management thereof; and</text></paragraph>
<paragraph id="HABD6C241C00E4C3AAD2A425FE68230EA"><enum>(5)</enum><text display-inline="yes-display-inline">taking any formal or informal enforcement action that is based, in whole or in part, on any matter concerning or related to reputational risk of a depository institution, or the management thereof.</text></paragraph></subsection> <subsection id="H46C7EFF91D1E4639A8BD2288B1B7B7EF"><enum>(f)</enum><header>Reports</header><text>Not later than 180 days after the date of enactment of this Act, each Federal banking agency shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that—</text>
<paragraph id="HB636D76AEE364ADD89128CFAC013BCF2"><enum>(1)</enum><text>confirms implementation of this section; and</text></paragraph> <paragraph id="H0D0ED823B8AE4E8E9919E2B91D386EDE"><enum>(2)</enum><text>describes any changes made to internal policies as a result of this section.</text></paragraph></subsection></section>
<enum>IV</enum><header>Regulatory Accountability and Transparency</header>
<section id="H45EB9714F1A04D7DA9EBBDA1911A9F95"><enum>401.</enum><header>FDIC Board Accountability</header><text display-inline="no-display-inline">Section 2 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1812">12 U.S.C. 1812</external-xref>) is amended—</text> <paragraph id="H412342C3AB154B65969DEC19162D640A"><enum>(1)</enum><text>by striking <quote>Consumer Financial Protection Bureau</quote> each place such term appears and inserting <quote>Bureau of Consumer Financial Protection</quote>; </text></paragraph>
<paragraph id="H360867E5EBD04EBCAE44F87AB647B9AA"><enum>(2)</enum><text>by amending subsection (a)(1)(C) to read as follows:</text> <quoted-block style="OLC" id="H94FCDEC3B74F4C51867DA59D97DB74A5" display-inline="no-display-inline"> <subparagraph id="HECB663780E2343B188DE8CA6FEA2A90E"><enum>(C)</enum><text display-inline="yes-display-inline">3 of whom shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States, 1 of whom shall have State bank supervisory experience, and separately 1 of whom shall have demonstrated primary experience working in or supervising depository institutions having less than $17,000,000,000 in total assets.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H4311B516ED5B430997DECC25F8EDB50C"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="H94A85B45400245F6959AC3C7FD95917B"><enum>(A)</enum><text>in paragraph (1), by adding at the end the following: <quote>No individual may be appointed as a member for more than two terms.</quote>; and</text></subparagraph>
<subparagraph id="H0117059FE50D41A787A823DFF370DBB0"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H5E1F9E8A09AE47B989CF3BA8DE6BCA13" display-inline="no-display-inline"> <paragraph id="HF59AEAB6FBB84FA08A72157CB3394F5C"><enum>(4)</enum><header>Maximum length of service</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act, no person shall serve as a member for more than twelve years in total.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section>
<section id="H8E0015793AC549DB87A1D9EE06BA37AE"><enum>402.</enum><header>Stop Agency Fiat Enforcement of Guidance</header>
<subsection id="H86CEBE7F7B284AC5B29659AE900188C5" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Each financial agency shall include a guidance clarity statement as described in subsection (b) on any guidance issued by that financial agency on and after the date of the enactment of this Act.</text></subsection> <subsection id="HD43725FA3FFA432E8CFD29D7FFA33987"><enum>(b)</enum><header>Guidance clarity statement</header><text>A guidance clarity statement required under subsection (a) shall be displayed prominently on the first page of the document and shall include the following: <quote>This guidance does not have the force and effect of law and therefore does not establish any rights or obligations for any person and is not binding on the agency or the public. If this guidance suggests how regulated entities may comply with applicable statutes or regulations, noncompliance with this guidance does not conclusively establish a violation of applicable law.</quote>.</text></subsection>
<subsection id="H7C0C51F45C314D8EAEFBB48A0C77CEA9"><enum>(c)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H8632EF2F975847449864F70BE06E81DB"><enum>(1)</enum><header>Financial agency</header><text>The term <term>financial agency</term> means the following:</text>
<subparagraph id="HA5BCB987AA0243889232AA7A369FD469"><enum>(A)</enum><text>The Bureau of Consumer Financial Protection.</text></subparagraph> <subparagraph id="H988AF6EED06E47F6882222162A4C4974"><enum>(B)</enum><text>The Department of Housing and Urban Development.</text></subparagraph>
<subparagraph id="HA5FEF5A764CF445EA26CA38F5A71B94C"><enum>(C)</enum><text>The Department of the Treasury.</text></subparagraph> <subparagraph id="H5D5DB7C2808B4767BE1742E1D3189DD2"><enum>(D)</enum><text>The Federal Deposit Insurance Corporation.</text></subparagraph>
<subparagraph id="HB9E9950E39194CC496ECAB3C76F419B5"><enum>(E)</enum><text>The Federal Housing Finance Agency.</text></subparagraph> <subparagraph id="H260D5ED1A5C54A8987152F5944EC88DA"><enum>(F)</enum><text>The Board of Governors of the Federal Reserve System.</text></subparagraph>
<subparagraph id="H1D1144C903E34D049E5D2701D6DA13A8"><enum>(G)</enum><text>The National Credit Union Administration.</text></subparagraph> <subparagraph id="H5E7DDE09A7BB4A0EB38932DF2CEDF0D4"><enum>(H)</enum><text>The Office of the Comptroller of the Currency.</text></subparagraph>
<subparagraph id="HAA302A35B3744900ACCA7E2C297AEA7A"><enum>(I)</enum><text>The Securities and Exchange Commission.</text></subparagraph></paragraph> <paragraph id="H1ACED3C3DC89499BB1A96A222557073F"><enum>(2)</enum><header>Guidance</header><text>The term <term>guidance</term> means a financial agency statement of general applicability, intended to have a future effect on the behavior of regulated parties, that sets forth a policy on a statutory, regulatory, or technical issue, or an interpretation of a statute or regulation, but does not include—</text>
<subparagraph id="HDE7171BBCBAB49539BD244CD9EF2CA03"><enum>(A)</enum><text>a rule promulgated pursuant to notice and comment under section 553 of title 5, United States Code;</text></subparagraph> <subparagraph id="H897A0410759F42E19074543A70FDFAF5"><enum>(B)</enum><text>a rule exempt from rulemaking requirements under section 553(a) of title 5, United States Code;</text></subparagraph>
<subparagraph id="H745D2078D2D24645A919D0408D6406CA"><enum>(C)</enum><text display-inline="yes-display-inline">a rule of financial agency organization, procedure, or practice under section 553(b)(A) of title 5, United States Code;</text></subparagraph> <subparagraph id="HACC167CFA58541CE8C13A6F83AF814C3"><enum>(D)</enum><text>a decision of a financial agency adjudication under section 554 of title 5, United States Code, or any similar statutory provision;</text></subparagraph>
<subparagraph id="HEAB0500D34D94ECEA1B3F24D35569CF6"><enum>(E)</enum><text>internal guidance directed to the issuing financial agency or other agency that is not intended to have a substantial future effect on the behavior of regulated parties; or</text></subparagraph> <subparagraph id="HA8FCC1F77656495DABC7C9F4FB6D1D39"><enum>(F)</enum><text>internal executive branch legal advice or legal opinions addressed to executive branch officials.</text></subparagraph></paragraph></subsection></section>
<section id="HC1707411EC1543529EEEF2BB6686B5ED"><enum>403.</enum><header>Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow</header><text display-inline="no-display-inline">Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/12/3311">12 U.S.C. 3311</external-xref>) is amended—</text> <paragraph id="HC53EBFD49F254A6092A1CE29D8F942AE"><enum>(1)</enum><text>by striking <quote>appropriate Federal banking agency</quote> each place such term appears and inserting <quote>Federal financial institutions regulatory agency</quote>;</text></paragraph>
<paragraph id="H2F02F1C93A3F4D899FF4C0A65FA35A5A"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>appropriate Federal banking agencies</quote> and inserting <quote>Federal financial institutions regulatory agencies</quote>;</text></paragraph> <paragraph id="HC98BCDAB92DD4B769B474B093BDB7A22"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph id="H50BD5BF9D9C64AA3BA3D04F728EE0305"><enum>(A)</enum><text>by striking <quote>represented on the Council</quote>; and</text></subparagraph> <subparagraph id="H56EE5D47909A46A0B4320F125C8BEC73"><enum>(B)</enum><text>by striking <quote>once every 10 years</quote> and inserting <quote>once every 8 years</quote>;</text></subparagraph></paragraph>
<paragraph id="H37474017E20A4450837CF46B40F54E71"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (b)—</text> <subparagraph id="H0715C443DEA3442C8004929B31644DE0"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively (and adjusting the margins accordingly);</text></subparagraph>
<subparagraph id="H27962AA31DD94A2188E7423264EBD181"><enum>(B)</enum><text>by striking <quote>In conducting</quote> and inserting the following:</text> <quoted-block style="OLC" id="H345E98F3F4F043EA9F7B096635202E1B" display-inline="no-display-inline"> <paragraph id="H0C75A5A997554BBB9DFA54526E8E77A0"><enum>(1)</enum><header>Solicitation of public comment</header><text display-inline="yes-display-inline">In conducting</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H2F7FD6E52AA749E6B964400A2E083E2A"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H2B0CF2D3E585456C8B0572C92701B8EA" display-inline="no-display-inline"> <paragraph id="HE3714119FBBB4CA4809CF9A88D74167C"><enum>(2)</enum><header>Internal review of cumulative impact</header><text display-inline="yes-display-inline">Each Federal financial institutions regulatory agency shall conduct an internal review of the cumulative impact of regulations issued by the Federal financial institutions regulatory agency that—</text>
<subparagraph id="H4B40580FBF43499982E9BE2705DD7DC4" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">assesses the effects of such regulations on consumers’ access to financial products and services;</text></subparagraph> <subparagraph id="HD6B025146AA842CA9C48CCA58C7217C6"><enum>(B)</enum><text display-inline="yes-display-inline">assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms;</text></subparagraph>
<subparagraph id="HF3BF77BB176345F5ADBA4198615D950F"><enum>(C)</enum><text display-inline="yes-display-inline">assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets;</text></subparagraph> <subparagraph id="H7D46A681AD1B47489027624FD147706D"><enum>(D)</enum><text display-inline="yes-display-inline">assess the effects of such regulations on consumer protection; </text></subparagraph>
<subparagraph id="H9F3677A6D4CC489DA4D722662EDD2A3F"><enum>(E)</enum><text display-inline="yes-display-inline">assesses the balance of benefits and costs of such regulations with respect to the safety and soundness of the United States financial system and overall economic activity in the United States;</text></subparagraph> <subparagraph id="H386B8A231E3E4AE0AA5AECF58B96BBFB"><enum>(F)</enum><text>to the extent practicable, quantifies the direct and indirect economic costs imposed by such regulations; and</text></subparagraph>
<subparagraph id="H4288BC7833354FE1AB4620DCD7E6605B"><enum>(G)</enum><text>includes recommendations to streamline or eliminate duplicative, outdated, and unnecessarily burdensome regulations.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H5C5D88175A1E4C36B0199AA2B5B87C89"><enum>(5)</enum><text>in subsection (c)—</text>
<subparagraph id="H640125F4E6034CB09C59BB67524DD165"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>subsection (b)(2)</quote> and inserting <quote>subsection (b)(1)(B), and the internal review under subsection (b)(2),</quote>; and</text></subparagraph> <subparagraph id="H6B9166AEE8F94BFD83446D8F38F2B072"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>once every 10 years</quote> and inserting <quote>once every 8 years</quote>;</text></subparagraph></paragraph>
<paragraph id="HC135C72C1D0F428E8FB4DF1926DE9346"><enum>(6)</enum><text>in subsection (e)—</text> <subparagraph id="H6D63F21D6FBF417AA78F59F83EFC1446"><enum>(A)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end;</text></subparagraph>
<subparagraph id="HAF8B05C1B5204678A2178DC9E3DA6552"><enum>(B)</enum><text>by redesignating paragraph (2) as paragraph (3);</text></subparagraph> <subparagraph id="H4F1E23C6B78441EFBA3B2A961FF05196"><enum>(C)</enum><text>by inserting after paragraph (1) the following:</text>
<quoted-block style="OLC" id="H875FFFCC36B9441F9F3CE81BCE1A72BF" display-inline="no-display-inline">
<paragraph id="H602DF20F38274BD4AE766E2157141632"><enum>(2)</enum><text display-inline="yes-display-inline">a summary of the findings and determinations of each Federal financial institutions regulatory agency of the internal review conducted by the Federal financial institutions regulatory agency under subsection (b)(2); and</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H663E21275F4F4F72843A401FE345CB41"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (3), as so redesignated, by striking <quote>the regulatory burdens associated with such issues by regulation</quote> and inserting <quote>the regulatory burdens associated with the issues identified by public comments received by the Council and the Federal financial institutions regulatory agencies, as well as the regulatory burdens identified by each Federal financial institutions regulatory agency through the internal reviews conducted under subsection (b)(2), by regulation</quote>; and</text></subparagraph></paragraph>
<paragraph id="HA932BD573F8A4A6583DA1126B96C339C"><enum>(7)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HEC7DE3F9964B455F841C167DBE8EC58A" display-inline="no-display-inline"> <subsection id="HA8E4067C6FDC4E119FD1FB438428875F"><enum>(f)</enum><header>Federal financial institutions regulatory agency defined</header><text display-inline="yes-display-inline">The term <term>Federal financial institutions regulatory agency</term> has the meaning given that term in section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3302">12 U.S.C. 3302</external-xref>). </text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<enum>V</enum><header>Strengthening Local Bank Funding</header>
<section id="HA23BC5426CCC4E40988B57311AAD68CC" section-type="subsequent-section"><enum>501.</enum><header>Bringing the Discount Window into the 21st Century</header><text display-inline="no-display-inline">Section 10 of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/241">12 U.S.C. 241 et seq.</external-xref>) is amended by inserting after paragraph (10) the following:</text> <quoted-block style="OLC" id="H2379A609F5EC4E2888BF882735B68E8C" display-inline="no-display-inline"> <paragraph id="H0348BDC6574F42C389D8E56937671F54"><enum>(11)</enum><header>Review of discount window operations</header> <subparagraph id="H35696C35BEBC475DBFE314838A1C571D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 60 days after the date of enactment of this paragraph, the Board of Governors shall commence a review of the discount window lending programs of the Federal reserve banks (the <quote>discount window</quote>), and shall complete such review not later than 240 days after the date of enactment of this paragraph.</text></subparagraph>
<subparagraph id="HEEEDFBD6928948D5977000FFA9F78239"><enum>(B)</enum><header>Contents</header><text>The review required by subparagraph (A) shall include a consideration of—</text> <clause id="H28B67A8D768D4D64B2A8FEB44DF7B886"><enum>(i)</enum><text display-inline="yes-display-inline">the effectiveness of the discount window in providing liquidity to financial institutions, including in times of financial stress;</text></clause>
<clause id="H5577C5E270894921B04D2FD4B79513F1"><enum>(ii)</enum><text>whether the technology infrastructure, including means of communications, are sufficient to support the timely provision of liquidity, including in times of financial stress;</text></clause> <clause id="HC290FC296AB343619DC857946D03B68B"><enum>(iii)</enum><text display-inline="yes-display-inline">the effectiveness of cybersecurity measures implemented with respect to discount window operations;</text></clause>
<clause id="H75AE6A971062482C8BD08EACFBCBDB48"><enum>(iv)</enum><text display-inline="yes-display-inline">the effectiveness of communications between Federal reserve banks, financial institutions, the Board of Governors, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the Secretary of the Treasury regarding discount window operations;</text></clause> <clause id="HF397AC6F9F604A3C89F99A2F89424F10"><enum>(v)</enum><text display-inline="yes-display-inline">the effectiveness of the Board of Governors in providing oversight of the discount window and in ensuring consistent access to the discount window across the Federal Reserve System;</text></clause>
<clause id="HEB5041BF93454F24B91F21DA6DD7B6F5"><enum>(vi)</enum><text display-inline="yes-display-inline">how the discount window interacts with other providers of liquidity, including the Federal Home Loan Banks, during both normal operations and times of financial distress;</text></clause> <clause id="H9A76F40A01834379A8623758D73874BE"><enum>(vii)</enum><text display-inline="yes-display-inline">the effectiveness of existing discount window operating hours and whether such hours should be expanded, taking into account the interaction between discount window operating hours and the operating hours of payment systems of the Federal reserve banks, such as the Fedwire Funds Service and FedNow Service;</text></clause>
<clause id="H27A0486682CA4873B6B524517ECEBBDF"><enum>(viii)</enum><text display-inline="yes-display-inline">the impact of mobile banking and instant communications technology on depositor behavior and liquidity risk posed to financial institutions, including how the discount window can—</text> <subclause id="H9B8AF8236ED64A9BAD833B39A6990094"><enum>(I)</enum><text>help financial institutions better respond to rapid liquidity shortfalls; and</text></subclause>
<subclause id="HE0F77600763E45638918F9495FC5BF59"><enum>(II)</enum><text>prevent broader financial instability; and</text></subclause></clause> <clause id="H48610B5C421A47E6955B6C3088D28478" display-inline="no-display-inline"><enum>(ix)</enum><text display-inline="yes-display-inline">the effectiveness of the discount window in light of the stigma associated with its usage, ways to reduce such stigma, and ways to improve access, operational efficiency, transparency, and timeliness of the process for financial institutions seeking advances, including on the pricing and other terms of such advances.</text></clause></subparagraph>
<subparagraph id="H4E8A55D5356844F2837C94FA81E7DB14"><enum>(C)</enum><header>Remediation plan</header><text display-inline="yes-display-inline">After the Board of Governors completes the review required by subparagraph (A), the Board of Governors, in consultation with the Federal reserve banks, shall—</text> <clause id="HA4698AE9E4EC447BBBE0AE6F75EA3BAD"><enum>(i)</enum><text>identify deficiencies with the discount window and areas for enhancing discount window effectiveness; and</text></clause>
<clause id="H3F91190F12414CA3AA060D85802ED908"><enum>(ii)</enum><text display-inline="yes-display-inline">develop a written plan to remediate the identified deficiencies and implement the identified enhancements, which shall include—</text> <subclause id="H35E300D13C134C34B5C6598FCF475663"><enum>(I)</enum><text display-inline="yes-display-inline">an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies;</text></subclause>
<subclause id="H12EC6A44ADFC49A89041AE3F556C4C99"><enum>(II)</enum><text display-inline="yes-display-inline">timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis; and</text></subclause> <subclause id="HCA35BD5317DA4DEE9D080BDC37EA3886"><enum>(III)</enum><text display-inline="yes-display-inline">measures of managing and controlling any deficiencies and current operations until the plan is implemented in full.</text></subclause></clause></subparagraph>
<subparagraph id="HA283276ED5FB4152B6569047B25C98D7"><enum>(D)</enum><header>Report to Congress on review and plan</header>
<clause id="H7F30FFFF27FD423896AF5B4D86ED0C76"><enum>(i)</enum><header>In general</header><text>Not later than 365 days after the date of enactment of this paragraph, the Board of Governors shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—</text> <subclause id="HB78CBE3438B949B8BE3C4D81F77DF937"><enum>(I)</enum><text display-inline="yes-display-inline">the findings of the review required by subparagraph (A); and</text></subclause>
<subclause id="H95CD9A22DA4242C08E4A84B64092380B"><enum>(II)</enum><text>the remediation plan required by subparagraph (C).</text></subclause></clause> <clause id="H580AD64A2B584E6B92E40F9EE8C2D87A"><enum>(ii)</enum><header>Consultation</header><text display-inline="yes-display-inline">Before submitting the report required by clause (i), the Board of Governors shall—</text>
<subclause id="HAB9CAC88D77D43B4A57D0DEDA0A540B5"><enum>(I)</enum><text display-inline="yes-display-inline">provide a copy of the proposed report to the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury; and</text></subclause> <subclause id="HF559E70A2CC24F57AB44886774AC6D75"><enum>(II)</enum><text display-inline="yes-display-inline">provide the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury with an opportunity to provide feedback on the report.</text></subclause></clause>
<clause id="H4580467EE0804ABBB2D5C791F9021C12"><enum>(iii)</enum><header>Testimony</header><text display-inline="yes-display-inline">The Chairman of the Board of Governors shall, at the semi-annual hearing required under section 2B, testify with respect to the contents of the report required under this subparagraph.</text></clause></subparagraph> <subparagraph id="HFCBAD05FA05E485E9C43EAAFE19D9021"><enum>(E)</enum><header>Annual reports to Congress</header> <clause id="H9B1515E021D94BF2BB5A75802BBF94FE"><enum>(i)</enum><header>Reports by the Board</header><text display-inline="yes-display-inline">The Board of Governors shall submit an annual report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing a review of the effectiveness of discount window operations and a progress report on the actions taken to implement the identified enhancements described in subparagraph (C).</text></clause>
<clause id="HD63F2012C5244917A7BAFA6450AD8D2C"><enum>(ii)</enum><header>Reports by the Inspector General</header><text display-inline="yes-display-inline">The Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection shall submit an annual report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing a report on the progress of the Board of Governors in implementing the remediation plan required by subparagraph (C).</text></clause></subparagraph> <subparagraph id="H23133021CD014E4C96C2A17FD297F4E4"><enum>(F)</enum><header>Confidential report information</header><text display-inline="yes-display-inline">Any report required under this paragraph may contain a confidential annex containing information that, if made public, could—</text>
<clause id="HA0DD57761B02420EA1FACD8838CCEBEE"><enum>(i)</enum><text display-inline="yes-display-inline">impact monetary policy, financial stability, or cybersecurity; or</text></clause> <clause id="H42E39211C02C42CD9A7BBEDD4A959DA8"><enum>(ii)</enum><text display-inline="yes-display-inline">significantly endanger the safety and soundness of any financial institution.</text></clause></subparagraph>
<subparagraph id="H0C25C5A6293246CE98BF615DB84EE2F7" display-inline="no-display-inline"><enum>(G)</enum><header>Repeal</header><text display-inline="yes-display-inline">This paragraph shall be repealed on the date on which the Board of Governors notifies the Congress and publishes on a public website of the Board of Governors that the remediation plan required under subparagraph (C) has been fully implemented.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HBCE061ECA43F46CCB52DF670708BA433"><enum>502.</enum><header>Keeping Deposits Local</header> <subsection id="H94D33B802F0944C4BA4981B0D6CE9321"><enum>(a)</enum><header>Amount of reciprocal deposits that are not considered To be funds obtained by or through a deposit broker</header><text>Section 29(i)(1)(C) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1831f">12 U.S.C. 1831f(i)(1)(C)</external-xref>) is amended by striking <quote>$96,333,333,333</quote> and inserting <quote>$250,000,000,000</quote>. </text></subsection>
<subsection id="HD479AD234E3044528DF30CDCBB55B14F"><enum>(b)</enum><header>Definition of Agent Institution</header><text>Section 29(i) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1831f">12 U.S.C. 1831f(i)</external-xref>) is amended—</text> <paragraph id="HC7B4F7389CA64001A49FB4505648DA1D"><enum>(1)</enum><text>in paragraph (2)(A)—</text>
<subparagraph id="H7EC020E3294943A385858E717392B248"><enum>(A)</enum><text>in clause (i), by striking subclause (I) and inserting the following:</text> <quoted-block style="OLC" id="HE082612ADAAA4480A73689B5B214EC79" display-inline="no-display-inline"> <subclause id="HBE23E9D6642B413B9CA6751B40A33D2E"><enum>(I)</enum><text display-inline="yes-display-inline">when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H0D6D963A4A0F4F839A7C3F95BC6A219F"><enum>(B)</enum><text>by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and</text></subparagraph> <subparagraph id="HBFA962BCE17D4E00BEE9B2EFE0CFC903"><enum>(C)</enum><text>by inserting after clause (i) the following:</text>
<quoted-block style="OLC" id="H6B72F399995E41E0B350DF4AFC89B362" display-inline="no-display-inline">
<clause id="HDD789498AE49490C8734E67457D7EAE7"><enum>(ii)</enum><text display-inline="yes-display-inline">has not yet been examined under section 10(d) and the deposits of which first became insured under this Act during the current calendar year or during the immediately preceding calendar year;</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H468EA41C379C4A35A23F5B95D5BCCB0A"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H93A60A93473B4B9BAEA8DB0851C61BE4" display-inline="no-display-inline">
<paragraph id="H866442F8671546A584037E1867F32190"><enum>(3)</enum><header>Reservation of authority</header><text display-inline="yes-display-inline">If an insured depository institution ceases to be an agent institution because it no longer satisfies any of the criteria in paragraph (2)(A), the Corporation may, on a case-by-case basis and upon application, provide a waiver to permit the institution to continue to consider some or all of the deposits previously subject to the exception under paragraph (1) as continuing to be subject to the exception under paragraph (1), for a specific or indefinite period of time, if the Corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H8967B3195D7149ACA3E59C65E1BD2C94"><enum>(c)</enum><header>Reciprocal deposits study</header> <paragraph id="HAD57BC7533EE4CA99F8FA6FBA5E450D5"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.</text></paragraph>
<paragraph id="HFF19CC943BAE46D5B0E0594A2EAC094F"><enum>(2)</enum><header>Contents</header><text>The study required under paragraph (1) shall include—</text> <subparagraph id="HEEB277172F1043A2976F347EC094979F"><enum>(A)</enum><text display-inline="yes-display-inline">an analysis of how reciprocal deposits have performed since 2018, which shall include—</text>
<clause id="H2DA90A450F334A90A905D8F3904D2F56"><enum>(i)</enum><text>the use of quantitative and qualitative data;</text></clause> <clause id="HACA2329F83AC4424BA3C9093599D2852"><enum>(ii)</enum><text>a breakdown of the usage of reciprocal deposits by size of insured depository institution;</text></clause>
<clause id="H101F2D31E3F14296BC7991450585A13B"><enum>(iii)</enum><text display-inline="yes-display-inline">the usage of reciprocal deposits during periods of stress; and</text></clause> <clause id="HEA0E06D4DB6D4A3E895944EA177CC4A8"><enum>(iv)</enum><text display-inline="yes-display-inline">an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products;</text></clause></subparagraph>
<subparagraph id="HD4926E24EDCF418C8A86A69BAF292BFB"><enum>(B)</enum><text display-inline="yes-display-inline">an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and</text></subparagraph> <subparagraph id="H94357BD59BE943099B25E18167E4B681"><enum>(C)</enum><text display-inline="yes-display-inline">an analysis of the benefits and potential risks of reciprocal deposits.</text></subparagraph></paragraph>
<paragraph id="HF77AD5CA4443450C81CF30EBFBE16382"><enum>(3)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 6 months after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).</text></paragraph></subsection></section> <enum>VI</enum><header>Promoting Bank Competition and Merger Clarity</header> <section id="H2D0C91FAAEAB4C8C833702C4F8B190D3"><enum>601.</enum><header>Bank Competition Modernization</header> <subsection id="H7F49F896648944FEB1FB78243370A915"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 18(c) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(c)</external-xref>), as amended by section 604(c), is further amended—</text>
<paragraph id="HCEAB71E1683E47C2AFFD6B3D2B214811" commented="no"><enum>(1)</enum><text>in paragraph (4)(C)—</text> <subparagraph id="HFD5A840029F34D4093E5AAB8F358B233" commented="no"><enum>(A)</enum><text>in clause (i), by striking <quote>or</quote> at the end;</text></subparagraph>
<subparagraph id="H27E4C309E8F746C8B0301992CA8963C5" commented="no"><enum>(B)</enum><text>in clause (ii), by striking the period at the end and inserting <quote>; or</quote>; and</text></subparagraph> <subparagraph id="H4F423B8760B146F8A8DDDBA8FC330382" commented="no"><enum>(C)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H941B0E3B12744307A2C700BD8632AB7C" display-inline="no-display-inline">
<clause id="H3B46C0D8087744A5A5EE8EE9F53DF830" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area.</text></clause><after-quoted-block>; and </after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H6B327FB847C0427A9CEC8F1EC75DCA99"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block style="OLC" id="H9635E431FE7749D2A814F138BD82A49F" display-inline="no-display-inline">
<paragraph id="HEAA78D75783F4A9BB72C5CC982063775" indent="up1"><enum>(16)</enum><header>For merger transactions resulting in institutions with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area</header><text display-inline="yes-display-inline">Notwithstanding paragraph (5), if a proposed merger transaction would result in an institution with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the responsible agency shall not consider whether such merger transaction would—</text> <subparagraph id="H539EB00091124CFD87FBC4AAC2FAC365"><enum>(A)</enum><text display-inline="yes-display-inline">result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States; and</text></subparagraph>
<subparagraph id="H0A10FC9A6FA24AEDAC57BF40772FA0AB"><enum>(B)</enum><text display-inline="yes-display-inline">have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H0BCDA0522668446782FEC73B3619E4B8"><enum>(b)</enum><header>For bank holding companies</header><text>Section 3(c) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1842">12 U.S.C. 1842(c)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" id="HB545E7934CB249868A98D0EBAF6F01D2" display-inline="no-display-inline">
<paragraph id="H16B4CC3C6F2F4EB3BB0C35F61079D418"><enum>(8)</enum><header>For proposed transactions resulting in companies with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), if a proposed acquisition, merger, or consolidation under this section would result in a company with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether such acquisition, merger, or consolidation would—</text> <subparagraph id="H4FCE810B744540248171787DBBA11B5C"><enum>(A)</enum><text display-inline="yes-display-inline">result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States; and</text></subparagraph>
<subparagraph id="H833F4EA407E54115B0DAA19EB7D5FC46"><enum>(B)</enum><text>have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCFE60D759AC44A3EAF0D94ACC727D255"><enum>(c)</enum><header>For savings and loan holding companies</header><text display-inline="yes-display-inline">Section 10(e) of the Home Owners’ Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1467a">12 U.S.C. 1467a(e)</external-xref>), as amended by section 604(b), is further amended by adding at the end the following:</text>
<quoted-block style="OLC" id="H6BC58F27184847C0B1855152C65BD614" display-inline="no-display-inline">
<paragraph id="HE493F6DB96024336AF5C1A393C49C2D4"><enum>(10)</enum><header>For proposed transactions resulting in companies with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area</header><text display-inline="yes-display-inline">Notwithstanding subparagraphs (A) and (B) of paragraph (2), if a proposed transaction under this section would result in a company with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether the transaction would—</text> <subparagraph id="H84022B85EEDC4538BA8D43EA7AF8B572"><enum>(A)</enum><text display-inline="yes-display-inline">result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the savings and loan business in any part of the United States; and</text></subparagraph>
<subparagraph id="H841676E665D24E90863AA7F555E7FBA4"><enum>(B)</enum><text>have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H4558C2C5C1A249BE924884A0350E3D3F"><enum>602.</enum><header>Merger Agreement Approvals Clarity and Predictability</header> <subsection id="H2EFC915AEBD2469482AF5472459AD965"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United States shall carry out a study on the use of commitments, conditions, and other aspects of merger review procedures by Federal depository institution regulatory agencies in connection with insured depository institution merger applications. The study shall—</text>
<paragraph id="H3E34F17FC95844A2993025DBC9F24B5A"><enum>(1)</enum><text>include an evaluation of relevant quantifiable metrics;</text></paragraph> <paragraph id="H6073591D31ED4D6FBDF48319F9694C65"><enum>(2)</enum><text display-inline="yes-display-inline">review the extent to which the use of commitments and conditions has aligned with statutory requirements, including a review of whether the use of commitments and conditions has been influenced by extrastatutory issues or considerations;</text></paragraph>
<paragraph id="H5B4053C3AA77453495CB578207D30DA1"><enum>(3)</enum><text>consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; and</text></paragraph> <paragraph id="HE79950E9BFFB425CAE564D0CA52E754D"><enum>(4)</enum><text>include an evaluation of the impact of such merger review procedures and resulting approved mergers on safety and soundness, financial stability, competition, and the availability of financial products and services offered by insured depository institutions.</text></paragraph></subsection>
<subsection id="H79EAAB6B121D4176A7337288840A3F9E"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Comptroller General shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under subsection (a).</text></subsection> <subsection id="H82BC2263BC5E41909D1E0A31B665A82C"><enum>(c)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H36EA0EC2815841CEB0DEC5CA3E282BA6"><enum>(1)</enum><header>Application</header><text>The term <term>application</term> means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.</text></paragraph> <paragraph id="H34585E79C1AC40FB8044828AF93EBA6E"><enum>(2)</enum><header>Federal depository institution regulatory agency</header><text>The term <term>Federal depository institution regulatory agency</term> means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration Board.</text></paragraph>
<paragraph id="H50B43C2C2B204EFBB5E3A9129319A12B"><enum>(3)</enum><header>Insured depository institution</header><text>The term <term>insured depository institution</term>—</text> <subparagraph id="H4588A2D0ABF04CF99BFA7974283EEB87"><enum>(A)</enum><text>has the meaning given that term in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text></subparagraph>
<subparagraph id="HA037204648ED4618B64784B87E3DF986"><enum>(B)</enum><text>means an insured credit union, as defined in section 101 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>).</text></subparagraph></paragraph> <paragraph id="H8D65B86DD2BA482FAF8D4C3639A6D9D6"><enum>(4)</enum><header>Insured depository institution merger application</header><text>The term <term>insured depository institution merger application</term> means an application with respect to the acquisition of an insured depository institution, its equity interests, its assets, or its deposits under—</text>
<subparagraph id="H9D2900B327A545B49F8CA4C7E6E19A30"><enum>(A)</enum><text>section 10(e) of the Home Owners’ Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1467a">12 U.S.C. 1467a(e)</external-xref>);</text></subparagraph> <subparagraph id="H2F7409D5929D4814B12255737BDDA78F"><enum>(B)</enum><text>section 205(b) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1785">12 U.S.C. 1785(b)</external-xref>);</text></subparagraph>
<subparagraph id="HEA555F3D412B4054A8D5687B7744AE3B"><enum>(C)</enum><text>section 7(j) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1817">12 U.S.C. 1817(j)</external-xref>);</text></subparagraph> <subparagraph id="H9A1149338384402F87B3AD59AEA1A8E5"><enum>(D)</enum><text>section 18(c)(2) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(c)(2)</external-xref>);</text></subparagraph>
<subparagraph id="H6F7F33E5408B44549C7029F231336719"><enum>(E)</enum><text>section 3 of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1842">12 U.S.C. 1842</external-xref>); and</text></subparagraph> <subparagraph id="H6CE17CC08D144E69AC56CAABFBCDAC12"><enum>(F)</enum><text>section 4 of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1843">12 U.S.C. 1843</external-xref>).</text></subparagraph></paragraph></subsection></section>
<section id="HBEDFDAB4A7C4437EB94436ADFE7F48F2"><enum>603.</enum><header>Merger Process Review</header>
<subsection id="H7F9AB5CDA6E5492688D6CA790B4A6C5E"><enum>(a)</enum><header>Review</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, and every 3 years thereafter, the Inspector General of each Federal depository institution regulatory agency shall review the Federal depository institution regulatory agency’s merger review procedures, including record of timeliness and efficiency in reviewing and acting upon insured depository institution merger applications. The review shall—</text> <paragraph id="H0F349E2323334C40924620339B01526E"><enum>(1)</enum><text>include an evaluation of relevant quantifiable metrics, including mean and median application processing times;</text></paragraph>
<paragraph id="H1B65C3DD665D470EAF56A33F50D6FF02"><enum>(2)</enum><text>identify sources of delay that may hinder the timely consummation of proposals that meet the relevant statutory factors;</text></paragraph> <paragraph id="H6D006646822D4C3D9CEE1B32F7B827D5"><enum>(3)</enum><text display-inline="yes-display-inline">consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law;</text></paragraph>
<paragraph id="H020AE73BB13D4678820381AF4E5B4F01"><enum>(4)</enum><text>include an evaluation of the impact of such merger review procedures and resulting approved mergers on safety and soundness, financial stability, competition, and the availability of financial products and services offered by insured depository institutions; and</text></paragraph> <paragraph id="HE5E02AFCFBA64957AEA72191B8183EBB"><enum>(5)</enum><text display-inline="yes-display-inline">include specific recommendations to improve the merger review process, including timeliness and efficiency of application processing, consistent with the Federal depository institution regulatory agency’s statutory responsibilities.</text></paragraph></subsection>
<subsection id="HB6B2B5C2C3F1478985D6FBB4038AE216"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Each Inspector General described under subsection (a) shall, at the conclusion of each review required under subsection (a), issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the review, and publish such report online.</text></subsection> <subsection id="HE04097DA08B949E8958658B1B74A5FF0"><enum>(c)</enum><header>Agency response</header><text display-inline="yes-display-inline">In response to each report issued under subsection (a), the appropriate Federal depository institution regulatory agency shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate and publish online a written response, including a plan to implement the recommendations in the report, to the extent such implementation is appropriate.</text></subsection>
<subsection id="H3A4C6FC905914EF5B229E8D1F1C7960E"><enum>(d)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H26A6102306954B65BF51BB54FF50BFEE"><enum>(1)</enum><header>Application</header><text>The term <term>application</term> means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.</text></paragraph>
<paragraph id="H5785C9E1A418457F9AE8E2676271D683"><enum>(2)</enum><header>Federal depository institution regulatory agency</header><text>The term <term>Federal depository institution regulatory agency</term> means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.</text></paragraph> <paragraph id="H2A42D41FC53647C48B32059E0DFB9AA6"><enum>(3)</enum><header>Insured depository institution</header><text>The term <term>insured depository institution</term>—</text>
<subparagraph id="H49583D677AEA4E9EB8EA0033BC8FBF0E"><enum>(A)</enum><text>has the meaning given that term in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text></subparagraph> <subparagraph id="H5DD9363F75E042DEBEE8B0209CC23157"><enum>(B)</enum><text>means an insured credit union, as defined in section 101 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>).</text></subparagraph></paragraph>
<paragraph id="H71ACD520584746B1832B82AF666AE994"><enum>(4)</enum><header>Insured depository institution merger application</header><text>The term <term>insured depository institution merger application</term> means an application with respect to the acquisition of an insured depository institution, its equity interests, its assets, or its deposits under—</text> <subparagraph id="H9D377A33D664427E82DB1A7AF6743EE6"><enum>(A)</enum><text>section 10(e) of the Home Owners’ Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1467a">12 U.S.C. 1467a(e)</external-xref>);</text></subparagraph>
<subparagraph id="HABF88985B53B431E8C4EA00373B60715"><enum>(B)</enum><text>section 205(b) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1785">12 U.S.C. 1785(b)</external-xref>);</text></subparagraph> <subparagraph id="HAFFA0A231A5B4D50A386EED4F0972462"><enum>(C)</enum><text>section 7(j) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1817">12 U.S.C. 1817(j)</external-xref>);</text></subparagraph>
<subparagraph id="H83245590DB734FADA49BF6D89A68A3AA"><enum>(D)</enum><text>section 18(c)(2) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(c)(2)</external-xref>);</text></subparagraph> <subparagraph id="H97A4DF3005A44F88A677C3F3F6A45B74"><enum>(E)</enum><text>section 3 of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1842">12 U.S.C. 1842</external-xref>); and</text></subparagraph>
<subparagraph id="HB9AC9F556DD145C1A139E59B4975297B"><enum>(F)</enum><text>section 4 of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1843">12 U.S.C. 1843</external-xref>).</text></subparagraph></paragraph></subsection></section> <section id="H74C55774407643E79015F651113FDDA4"><enum>604.</enum><header>Bank Failure Prevention</header> <subsection id="H66B687564E2D44CE96D98FDE4FCC4DCF"><enum>(a)</enum><header>Bank holding companies</header><text display-inline="yes-display-inline">Section 3(b)(1) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1842">12 U.S.C. 1842(b)(1)</external-xref>) is amended—</text>
<paragraph id="HC9C0A1467A5F438285B3E12B41979683"><enum>(1)</enum><text>by striking <quote>Upon receiving</quote> and inserting the following:</text> <quoted-block style="OLC" id="H70893A99076942D6AB1C4BCF2BF76D00" display-inline="no-display-inline"> <subparagraph id="H5AFC8DE66B394C34B8716D44C1A15C15" indent="up1"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Upon receiving</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph>
<paragraph id="HDEABFBE117744B54803DB7C6A388BED7"><enum>(2)</enum><text>by striking <quote>required</quote> and inserting <quote>acquired</quote>;</text></paragraph> <paragraph id="HC9FD14A1C69845999969EE408DBE1720"><enum>(3)</enum><text>by striking <quote>In the event of the failure of the Board to act on any application for approval under this section within the ninety-one-day period which begins on the date of submission to the Board of the complete record on that application, the application shall be deemed to have been granted.</quote>; and</text></paragraph>
<paragraph id="HF2F236184E6B481DAACF1023B57A9D22"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HB516A54B9DA14A5C85EB327C84549B5B" display-inline="no-display-inline"> <subparagraph id="H5A35106DA2534AE4B7BF6F9CC87772DF" indent="up1"><enum>(B)</enum><header>Complete record on an application</header> <clause id="HBC26FBCBEA5D46869C45972854DC21B6"><enum>(i)</enum><header>Notice to applicant</header><text display-inline="yes-display-inline">Not later than 30 days after the date on which the Board receives an application for approval under this section, the Board shall transmit to the applicant a letter that either—</text>
<subclause id="HFB633AB879674B1CAE7938FDA5263191"><enum>(I)</enum><text>confirms the record on the application is complete; or</text></subclause> <subclause id="H9E8146D680254AA88D94DF8A31BBAEC7"><enum>(II)</enum><text>details all additional information that is required for the record on that application to be complete.</text></subclause></clause>
<clause id="H84884F40CCDE4499BEDB2B48A335D004"><enum>(ii)</enum><header>Extension of notice</header><text display-inline="yes-display-inline">Notwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional period not to exceed 60 days.</text></clause> <clause id="H4E6B48607F2D4D5FAF7B7870A51B2E4D"><enum>(iii)</enum><header>Receipt of response; deeming of complete record</header><text display-inline="yes-display-inline">Upon receipt of a response from an applicant to a notice requesting additional information described under clause (i)(II), the record on the application shall be deemed complete unless the Board—</text>
<subclause id="H1A3F9239284F422FBBF2B8FCA5318EB3"><enum>(I)</enum><text>determines that the applicant’s response was materially deficient; and</text></subclause> <subclause id="HBBFD78A8DAFA47A7AFFE18F312404DB9"><enum>(II)</enum><text>not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.</text></subclause></clause>
<clause id="H7D114A0165C5421DBC2DAB77E5761CC4"><enum>(iv)</enum><header>Treatment of third-party information</header><text display-inline="yes-display-inline">In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.</text></clause></subparagraph> <subparagraph id="H407AAF115B60492CA59ED3A3A1A65E28" indent="up1"><enum>(C)</enum><header>Deadline for determination</header> <clause id="H55D549775F354D18B97705D9B7642697"><enum>(i)</enum><header>In general</header><text>Notwithstanding subparagraphs (A) and (B), the Board shall grant or deny an application submitted under this section not later than 120 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.</text></clause>
<clause id="H0325A59D9E4C44D2808115F16948EA27"><enum>(ii)</enum><header>Failure to make a determination</header><text>If the Board does not grant or deny an application within the time period described under clause (i), such application shall be deemed to have been granted.</text></clause> <clause id="H562E1552395D403595F7A06F0A14144B"><enum>(iii)</enum><header>Tolling of period</header><text display-inline="yes-display-inline">The Board may at any time extend the deadline described under clause (i) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under clause (i).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H28719E5CBB304320A5BF95119045D6F3" commented="no"><enum>(b)</enum><header>Savings and loan holding companies</header><text display-inline="yes-display-inline">Section 10(e) of the Home Owners’ Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1467a">12 U.S.C. 1467a(e)</external-xref>) is amended—</text> <paragraph id="H7138BBB062DB4770B9D25FB19E924243" commented="no"><enum>(1)</enum><text>in paragraph (2), by striking <quote>, and shall render a decision within 90 days after submission to the Board of the complete record on the application</quote>;</text></paragraph>
<paragraph id="HA8ED751AF0F84A9BA6DF5FDF23D19CA5" commented="no"><enum>(2)</enum><text>by redesignating paragraph (7) as paragraph (9); and</text></paragraph> <paragraph id="HDE186946AD1F4490887BC405EE08F400" commented="no"><enum>(3)</enum><text>by inserting after paragraph (6) the following:</text>
<quoted-block style="OLC" id="H1F68662E256C40929C1B4CEA680A6B07" display-inline="no-display-inline">
<paragraph id="HC678A6FAAE4049ECBD0A5DCC2B2A133B" commented="no"><enum>(7)</enum><header>Complete record on an application</header>
<subparagraph id="H5AA2606B8BEA4C6A8CB8EC98C67AC558" commented="no"><enum>(A)</enum><header>Notice to applicant</header><text display-inline="yes-display-inline">Not later than 30 days after the date on which the Board receives an application for approval under this subsection, the Board shall transmit to the applicant a letter that either—</text> <clause id="HEB6A0D3465A24FC397DC189FFE90EC33" commented="no"><enum>(i)</enum><text>confirms the record on the application is complete; or</text></clause>
<clause id="H419ADDE1954A46E5AD24FF59E9140855" commented="no"><enum>(ii)</enum><text>details all additional information that is required for the record on that application to be complete.</text></clause></subparagraph> <subparagraph id="HD07CC349A0AB440F8AF56532A49844F5" commented="no"><enum>(B)</enum><header>Extension of notice</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for a period not to exceed 60 days.</text></subparagraph>
<subparagraph id="H6BF3818599E2420CA5619E6430A51506" commented="no"><enum>(C)</enum><header>Receipt of response; deeming of complete record</header><text display-inline="yes-display-inline">Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the Board—</text> <clause id="HF1BDF737E2B9424580F436458C80A002" commented="no"><enum>(i)</enum><text>determines that the applicant’s response was materially deficient; and</text></clause>
<clause id="H0A8AE951458C49FD863E3917C6008C90" commented="no"><enum>(ii)</enum><text>not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.</text></clause></subparagraph> <subparagraph id="H81928BFD2640402D97BC530503877B5A" commented="no"><enum>(D)</enum><header>Treatment of third-party information</header><text display-inline="yes-display-inline">In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.</text></subparagraph></paragraph>
<paragraph id="HAFD1EBF72C544005B623AAEE2676C752" commented="no"><enum>(8)</enum><header>Deadline for determination</header>
<subparagraph id="HDFF9C11BEA4E4974A79AB1D1171396DE" commented="no"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of this subsection, the Board shall grant or deny an application submitted under this subsection not later than 120 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.</text></subparagraph> <subparagraph id="H0BAEB7C8E3834C828C136CB9EC143312" commented="no"><enum>(B)</enum><header>Failure to make a determination</header><text>If the Board does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.</text></subparagraph>
<subparagraph id="HA70F5C73E538478799B262BBCB77BF6D"><enum>(C)</enum><header>Tolling of period</header><text display-inline="yes-display-inline">The Board may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HF49EBDFA942A485D8AFD988EFE896DE9"><enum>(c)</enum><header>Insured depository institutions</header><text display-inline="yes-display-inline">Section 18(c) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(c)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" id="H4A5296E120E841D8BD7BAA87B7ED7FB6" display-inline="no-display-inline">
<paragraph id="H9381DBD0D54345F8BB3C985A40C275EB" commented="no" indent="up1"><enum>(14)</enum><header>Complete record on an application</header>
<subparagraph id="H95AC9A52011D4F08851DC98F9B389FAD" commented="no"><enum>(A)</enum><header>Notice to applicant</header><text display-inline="yes-display-inline">Not later than 30 days after the date on which the responsible agency receives a merger application for approval under this subsection, the responsible agency shall transmit to the applicant a letter that either—</text> <clause id="HC3FF801F1EC44A488487B516E2DC5073" commented="no"><enum>(i)</enum><text>confirms the record on the application is complete; or</text></clause>
<clause id="HF1FFDD70D2FA4B6994C9B330A12C8DF2" commented="no"><enum>(ii)</enum><text>details all additional information that is required for the record on that application to be complete.</text></clause></subparagraph> <subparagraph id="H1D359F59E9794F22A97D359B158CFDEF" commented="no"><enum>(B)</enum><header>Extension of notice</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), the responsible agency may, if an application is complex, extend the 30-day period described under subparagraph (A) for a period not to exceed 60 days.</text></subparagraph>
<subparagraph id="H238C18D7CC4040EBA4C49C534CD17C18" commented="no"><enum>(C)</enum><header>Receipt of response; deeming of complete record</header><text display-inline="yes-display-inline">Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the responsible agency—</text> <clause id="H66B26A9D1C8B4F4681F3E0769AB399D8" commented="no"><enum>(i)</enum><text>determines that the applicant’s response was materially deficient; and</text></clause>
<clause id="HF1FEE1F4F578466F97237778117F88EB" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">not later than 30 days after the date on which the responsible agency received the response, provides the applicant a detailed notice describing the deficiencies.</text></clause></subparagraph> <subparagraph id="HDCACBE38195446A8816C09E5C669E4A0" commented="no"><enum>(D)</enum><header>Treatment of third-party information</header><text display-inline="yes-display-inline">In determining whether the record on an application is complete, the responsible agency may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.</text></subparagraph></paragraph>
<paragraph id="HBC9C59085008410F9EE7CC600A1815CE" commented="no" indent="up1"><enum>(15)</enum><header>Deadline for determination</header>
<subparagraph id="H69B34F21283447C7977E3C87D82D23FF" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this subsection, the responsible agency shall grant or deny a merger application submitted under this subsection not later than 120 days after the date on which the application was initially submitted to the responsible agency, regardless of whether the record on such initial application was complete.</text></subparagraph> <subparagraph id="HA910F409BD15413388B5FF9DD4A3586E" commented="no"><enum>(B)</enum><header>Failure to make a determination</header><text display-inline="yes-display-inline">If the responsible agency does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.</text></subparagraph>
<subparagraph id="H0F8149C42D874CA2BC9C52FDD506D232"><enum>(C)</enum><header>Tolling of period</header><text display-inline="yes-display-inline">The responsible agency may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <enum>VII</enum><header>Strengthening Transparency and Involvement in Bank Resolutions</header> <section id="H12E1854F026249CAB839FD39CCB01360"><enum>701.</enum><header>Least Cost Exception</header> <subsection id="HD0A7716E29A34A84884AE022F50B5D47"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 13(c)(4) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823(c)(4)</external-xref>) is amended—</text>
<paragraph id="HD9E82237D7E843DCA2ABB1A59C124F82"><enum>(1)</enum><text>in subparagraph (A)(ii), by inserting <quote>except as provided in subparagraph (I),</quote> before <quote>the total amount</quote>;</text></paragraph> <paragraph id="H42631CF6225D46CE945F837F16F33AB2"><enum>(2)</enum><text>in subparagraph (E)(i), by inserting <quote>and except as provided in subparagraph (I),</quote> after <quote>appropriate,</quote>; and</text></paragraph>
<paragraph id="H750383165E0A4C63859F5A2343147E2C"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HAFD4E7F1518643CDABB159991A63F98E" display-inline="no-display-inline"> <subparagraph id="H99D80CD46D4F4C0D8BB11D7B01972DB4" indent="up1"><enum>(I)</enum><header>Least cost resolution exception</header> <clause id="H00592D59649B4B67A270E3AEC183BB62"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">With respect to an exercise of authority by the Corporation described in subparagraph (A), the Corporation may, at the discretion of the Corporation, select an alternative method of exercising such authority that is not the least costly to the Deposit Insurance Fund, if—</text>
<subclause id="H179E4F4838C74BD781F5B5B1DFD6977B"><enum>(I)</enum><text display-inline="yes-display-inline">the Corporation determines that the selected alternative complies with the requirements of clause (iii); and</text></subclause> <subclause id="HC3B7BF1A837D40D5950C89E5B5C22DE9"><enum>(II)</enum><text display-inline="yes-display-inline">the Corporation and the Board of Governors of the Federal Reserve System, after consultation with the Secretary of the Treasury, determine that the potential additional risks to the Deposit Insurance Fund of the selected alternative are outweighed by the reasonably expected benefits of limiting further concentration of the United States banking system in global systemically important banking organizations.</text></subclause></clause>
<clause id="HDB8918C017AF4DDB805820DDF0B94A37"><enum>(ii)</enum><header>Maximum cost to the Deposit Insurance Fund</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this subparagraph, the Corporation, by rule, shall establish criteria for determining on a case-by-case basis the maximum allowable cost against the net worth of the Deposit Insurance Fund that may be utilized to account for any determination under clause (i).</text></clause> <clause id="H555FC4738DF2478087377AD71272DB62"><enum>(iii)</enum><header>Requirements described</header><text display-inline="yes-display-inline">The requirements for the selected alternative described in clause (i) are as follows:</text>
<subclause id="H71D8F93F3D134712AC886DB6F2D90BB2"><enum>(I)</enum><text display-inline="yes-display-inline">The selected alternative is least costly to the Deposit Insurance Fund of all alternatives that do not involve a transaction with a global systemically important banking organization and that do not exceed the cost of liquidating the insured depository institution.</text></subclause> <subclause id="H997DA576DCDE43F994F84493A0D2EA66"><enum>(II)</enum><text display-inline="yes-display-inline">The difference between the cost of the selected alternative and the cost of a covered alternative is less than or equal to the maximum cost to the Deposit Insurance Fund specified pursuant to the rule adopted under clause (ii).</text></subclause>
<subclause id="H6A1636C2F302443EA9BEC1111D95DB05"><enum>(III)</enum><text display-inline="yes-display-inline">In the case of a selected alternative that involves another person purchasing assets of the insured depository institution or assuming deposit liabilities of the insured depository institution, such person agrees to pay an assessment to the Corporation comprised of payments—</text> <item id="HC4660C5B70F34DEAB1A44F9130D3CB10"><enum>(aa)</enum><text display-inline="yes-display-inline">made over a period to be determined by the Corporation, but which may not be less than 5 years; and</text></item>
<item id="H248F6AD3024B4137B575ADC9DA9F824F"><enum>(bb)</enum><text display-inline="yes-display-inline">in an amount that takes into account, on a case-by-case basis, criteria the Corporation, by rule, shall establish, including a realistic discount rate, the aggregate amount equal to the difference calculated in subclause (II), and any bid inconsistent with the purposes of this Act, with such rule to be established by the Corporation not later than 1 year after the date of enactment of this subparagraph.</text></item></subclause></clause> <clause id="H6370AE0903424D9E8C9875758AD1C9B0"><enum>(iv)</enum><header>Report to Congress</header><text display-inline="yes-display-inline">Not later than 30 days after selecting an alternative described in clause (i), the Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing an analysis of the economic difference between the cost to the Deposit Insurance Fund of the selected alternative and the cost to the Deposit Insurance Fund of the least costly alternative that would have been selected absent the application of this subparagraph.</text></clause>
<clause id="H9D8C691E5D0A43739C56CA39C6B7424A"><enum>(v)</enum><header>Cost determinations</header><text display-inline="yes-display-inline">All cost determinations required under this subparagraph shall be made in accordance with subparagraphs (B) and (C).</text></clause> <clause id="HD336B941278348EC9EA365E39F831B3E"><enum>(vi)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this subparagraph:</text>
<subclause id="HC563940E09014A16AAFBEDE2B305349F"><enum>(I)</enum><header>Covered alternative</header><text display-inline="yes-display-inline">The term <term>covered alternative</term> means a method of exercising authority described in subparagraph (A) that is the least costly to the Deposit Insurance Fund of all such methods that involve a sale of all or substantially all assets of the insured depository institution to, and assumption of all or substantially all deposit liabilities of the insured depository institution by, a global systemically important banking organization.</text></subclause> <subclause id="HD0442A148D804C71A6F4DBFD85FDC0A2"><enum>(II)</enum><header>Global systemically important banking organization</header><text>The term <term>global systemically important banking organization</term> means a global systemically important BHC (as such term is defined in section 217.402 of title 12, Code of Federal Regulations, or any successor thereto) and any affiliate thereof.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H2A21540BF68B4F9FA6E90F50D5056C02"><enum>(b)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Section 13(c)(4)(H) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823(c)(4)(H)</external-xref>) does not apply to the amendments made by subsection (a).</text></subsection></section> <section id="HD72EB96528394C989D5F25C745F547E2"><enum>702.</enum><header>Enhancing Bank Resolution Participation</header> <subsection id="HADF729E5C2A1494CB628A126F3CF7B1C"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Board of the Governors of the Federal Reserve System shall, jointly, carry out a study of—</text>
<paragraph id="HE3BF726D4BEB4F7FBEDF8B793B4B9FF9"><enum>(1)</enum><text display-inline="yes-display-inline">the use by the Comptroller of the Currency of shelf charters, including all conditional or preliminary shelf charter approvals granted between January 1, 2008, and the date of enactment of this Act;</text></paragraph> <paragraph id="HE1E2118CDC644405A2738838D0966B8B"><enum>(2)</enum><text display-inline="yes-display-inline">the use by the Federal Deposit Insurance Corporation of the modified bidder qualification process;</text></paragraph>
<paragraph id="H488B4003EB1243C097B0E5C08D6BEBE9"><enum>(3)</enum><text display-inline="yes-display-inline">the application of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841 et seq.</external-xref>) and section 10 of the Home Owners’ Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1467a">12 U.S.C. 1467a</external-xref>) to shelf charter proposals;</text></paragraph> <paragraph id="H974D179E37754EA4A458046E16369903"><enum>(4)</enum><text display-inline="yes-display-inline">whether shelf charters and modified bidder qualification processes were considered or used in connection with the receivership of any insured depository institution for which the Federal Deposit Insurance Corporation was appointed receiver in 2023;</text></paragraph>
<paragraph id="H378D85772A6546358E5621BE7795D6D4"><enum>(5)</enum><text display-inline="yes-display-inline">with respect to such receiverships, the extent to which greater use of shelf charters and modified bidder qualification processes could have—</text> <subparagraph id="H49378420CEC848449728075101769F66"><enum>(A)</enum><text display-inline="yes-display-inline">expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions;</text></subparagraph>
<subparagraph id="HF0C7321CAED0414CBE7719469CB1DE69"><enum>(B)</enum><text display-inline="yes-display-inline">resulted in greater competition and diversity in market outcomes;</text></subparagraph> <subparagraph id="H347C6C9324C646B19CF5EA997D54F0AA"><enum>(C)</enum><text>protected the Deposit Insurance Fund; or</text></subparagraph>
<subparagraph id="H357C0888CF6B4C5D8377646501AA5FA4"><enum>(D)</enum><text display-inline="yes-display-inline">strengthened financial stability and reduced the need for any emergency determination by the Secretary of the Treasury under section 13(c)(4)(G) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823(c)(4)(G)</external-xref>) with respect to any such receivership;</text></subparagraph></paragraph> <paragraph id="H0DD16964CDB44C6C94D2286CD69865FF"><enum>(6)</enum><text display-inline="yes-display-inline">the impact of the use of shelf charters and modified bidder qualification processes since January 1, 2008, including on financial stability, the safety and soundness of affected insured depository institutions, and the availability of financial products and services provided to consumers by such institutions; and</text></paragraph>
<paragraph id="HFF519FFCC0FC41D4B2575B7736263A44"><enum>(7)</enum><text>any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes.</text></paragraph></subsection> <subsection id="HE6E27C215A8845869C8ABC87AD1FAEB1"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Board of the Governors of the Federal Reserve System shall, jointly, submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—</text>
<paragraph id="HDE5B968F510A4F648A2A91156F6BDB22"><enum>(1)</enum><text>all findings and determinations made in carrying out the study required under subsection (a); and</text></paragraph> <paragraph id="H452764ECD7DA4CA2A24C8C998FE64423"><enum>(2)</enum><text display-inline="yes-display-inline">an identification of statutory or regulatory barriers to the use and effectiveness of shelf charters and modified bidder qualification processes in the resolution of failed insured depository institutions, including recommendations for legislative and regulatory changes.</text></paragraph></subsection>
<subsection id="HAA559CB2D00A4A038993D68F1C83BB68"><enum>(c)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H8814F39398A641EDBFBF445B454B7F85"><enum>(1)</enum><header>Insured depository institution</header><text display-inline="yes-display-inline">The term <term>insured depository institution</term> has the meaning given the term in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>).</text></paragraph>
<paragraph id="HEA4E2E024D2E4D7CBBD70C0C51C05327"><enum>(2)</enum><header>Modified bidder qualification process</header><text display-inline="yes-display-inline">The term <term>modified bidder qualification process</term> has the meaning given such term in the press release of the Federal Deposit Insurance Corporation titled <quote>FDIC Expands Bidder List for Troubled Institutions Plan Allows Those Without a Bank Charter to Participate in the Process</quote> published November 26, 2008.</text></paragraph> <paragraph id="HCFD71D0C98C3446796735A86FE4D83F2"><enum>(3)</enum><header>Shelf charter</header><text>The term <term>shelf charter</term> has the meaning given such term in the report issued by the Comptroller of the Currency titled <quote>Activities Permissible for National Banks and Federal Savings Associations, Cumulative</quote> published October 2017.</text></paragraph></subsection></section>
<section id="HC74E5C41773F43B881194E7E26AEF548"><enum>703.</enum><header>Failing Bank Acquisition Fairness</header>
<subsection id="H0687852E9BAC46D6993D5209888E2B8B"><enum>(a)</enum><header>Concentration limit exceptions only available to avoid serious adverse economic or financial effects</header>
<paragraph id="H17A54D75508F4F9C95C512980A92CA4D"><enum>(1)</enum><header>Concentration limits with respect to deposits</header>
<subparagraph id="H5F6C9A44BC534DCC981894DA5B91FB4A"><enum>(A)</enum><header>Federal Deposit Insurance Act</header><text>The Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>) is amended—</text> <clause id="H99BA26D7472347C2BB62644960CD9557"><enum>(i)</enum><text display-inline="yes-display-inline">in section 18(c)(13)—</text>
<subclause id="H44CEA2F6DB0F427AB9FECFD09370B7D8"><enum>(I)</enum><text>by amending subparagraph (B) to read as follows:</text> <quoted-block style="OLC" id="H0A011EBF5382498684E6CEDBF0440011" display-inline="no-display-inline"> <subparagraph id="H598D28ECE9A844EABCA7C9B2553BD1A7" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to an interstate merger transaction if—</text>
<clause id="H2BFA073694B74F75A528B0BF4AF2A395"><enum>(i)</enum><text display-inline="yes-display-inline">such interstate merger transaction involves 1 or more insured depository institutions in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A); or</text></clause> <clause id="H4E14C0DF4EC24660B77B97010F4AA66B"><enum>(ii)</enum><text display-inline="yes-display-inline">the Corporation provides assistance under section 13 to facilitate such interstate merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A).</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause>
<subclause id="H9294419EC9C5439AA5716A79DE19240C"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text> <item id="H424A2830CCD246999CB9793AA5F7A03E"><enum>(aa)</enum><text>in clause (i), by striking <quote>and</quote> at the end;</text></item>
<item id="H9A0B9B7681684C308619E27254F3FFF9"><enum>(bb)</enum><text>in clause (ii), by striking the period at the end and inserting a semicolon; and</text></item> <item id="H0537E544A5E746FE8C4422FFE4A4464D"><enum>(cc)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H48504983E6E74DBA93A37A213B570304" display-inline="no-display-inline">
<clause id="HE0233D4A653C4D69A4EB3DB7FAB7309D" indent="up2"><enum>(iii)</enum><text display-inline="yes-display-inline">the term <quote>qualified bid</quote> means an application, proposed application, or bid from a company where—</text> <subclause id="H10699D5AE7D64DBCB3769B98B25E1B25"><enum>(I)</enum><text display-inline="yes-display-inline">if applicable, the company, any affiliate insured depository institution, and any affiliate depository institution holding company are well capitalized and well managed, as of the date of the application, proposed application, or bid; and</text></subclause>
<subclause id="HB9749CF41CBC4005AE855FB671724C21"><enum>(II)</enum><text>upon consummation of the transaction, the resulting insured depository institution is well capitalized;</text></subclause></clause> <clause id="HEE78A953ED7F4403A7AE3182E5A1EE07" indent="up2"><enum>(iv)</enum><text>the term <quote>well capitalized</quote>—</text>
<subclause id="H758A8B5CBF854CE6B5C5103B07E786B1"><enum>(I)</enum><text display-inline="yes-display-inline">with respect to an insured depository institution, has the meaning given such term in section 38(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/1831o">12 U.S.C. 1831o(b)</external-xref>);</text></subclause> <subclause id="H017990631F39462F91C9AF7F3CB0B1CA"><enum>(II)</enum><text display-inline="yes-display-inline">with respect to a bank holding company, has the meaning given such term in section 2(o)(1)(B) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841(o)(1)(B)</external-xref>);</text></subclause>
<subclause id="H088D01D5FEF144338646B31ACFE8D331"><enum>(III)</enum><text display-inline="yes-display-inline">with respect to a savings and loan holding company, has the meaning given such term in section 238.2 of title 12, Code of Federal Regulations; and</text></subclause> <subclause id="H5F44F3BBFBAB4F5296353D0E251A56A0"><enum>(IV)</enum><text display-inline="yes-display-inline">with respect to a company that is not an insured depository institution, bank holding company, or savings and loan holding company, means maintaining equity capital that the Corporation determines is commensurate with the capital maintained by an insured depository institution that is well capitalized; and</text></subclause></clause>
<clause id="H8117C6631A2F42A3BF53993A736DFB4C" indent="up2"><enum>(v)</enum><text display-inline="yes-display-inline">the term <quote>well managed</quote> has the meaning given such term in section 2(o)(9) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841(o)(9)</external-xref>).</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></item></subclause></clause> <clause id="H0197443ED89C47AAA36FDD10AA8ADE36"><enum>(ii)</enum><text display-inline="yes-display-inline">in section 44, by amending subsection (e) to read as follows:</text>
<quoted-block style="OLC" id="HB34A0691469542FB94F5AAC78E603887" display-inline="no-display-inline">
<subsection id="HAFDF1884E6B04D3A9FE4A0AD68A51073"><enum>(e)</enum><header>Exception for Banks in Default or in Danger of Default</header>
<paragraph id="HF785CB8C51134A21B3F38698C9700200"><enum>(1)</enum><header>General exception</header><text>The responsible agency may, without regard to paragraph (1), (3), (4), or (5) of subsection (b) or paragraph (2), (4), or (5) of subsection (a), approve an application under subsection (a)(1) for approval of a merger transaction if—</text> <subparagraph id="HE773C3E6BD724C1F99E1E05F06D05129"><enum>(A)</enum><text display-inline="yes-display-inline">the merger transaction involves 1 or more banks in default or in danger of default; or</text></subparagraph>
<subparagraph id="H5433227B844F463AB7758C3D8D56A97D"><enum>(B)</enum><text display-inline="yes-display-inline">the Corporation provides assistance under section 13(c) to facilitate such merger transaction. </text></subparagraph></paragraph> <paragraph id="H83C59DEE304E4C0585167EA7D7C2E611"><enum>(2)</enum><header>Concentration limit exception</header><text>The responsible agency may, without regard to subsection (b)(2), approve an application under subsection (a)(1) for approval of a merger transaction if—</text>
<subparagraph id="H5306BE776D7E4A9FBDB8E6940FCA77FB"><enum>(A)</enum><text display-inline="yes-display-inline">the merger transaction involves 1 or more banks in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2); or</text></subparagraph> <subparagraph id="H1ED3882EC0FA4428B227868A8C07EB89"><enum>(B)</enum><text display-inline="yes-display-inline">the Corporation provides assistance under section 13(c) to facilitate such merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2).</text></subparagraph></paragraph>
<paragraph id="H4F6FC88448D94E0D8A95610DFE8366E3"><enum>(3)</enum><header>Qualified bid defined</header><text>In this subsection, the term <quote>qualified bid</quote> has the meaning given that term in section 18(c)(13)(C).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="H63AA43854A0B47529ECEB544D77C69F5"><enum>(B)</enum><header>Bank Holding Company Act of 1956</header><text display-inline="yes-display-inline">The Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841 et seq.</external-xref>) is amended—</text>
<clause id="H7E7C2CBF979141AEA5CB1AEE517B5CA7"><enum>(i)</enum><text display-inline="yes-display-inline">in section 3(d), by amending paragraph (5) to read as follows:</text> <quoted-block style="OLC" id="H8E0581B3F74C4EBE862FBD4AED28C6EB" display-inline="no-display-inline"> <paragraph id="H28A200003DBC49258E219247661DBE2B"><enum>(5)</enum><header>Exception for banks in default or in danger of default</header> <subparagraph id="H15712E099C354FF5B41D34DF6CC80496"><enum>(A)</enum><header>General exception</header><text>The Board may, without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (3), approve an application pursuant to paragraph (1)(A) if—</text>
<clause id="HE3D3A3C34FD645DD91501C74D4EA0E2A"><enum>(i)</enum><text display-inline="yes-display-inline">the application is for an acquisition of 1 or more banks in default or in danger of default; or</text></clause> <clause id="H02A496662AD94C988EC290FF6B277229"><enum>(ii)</enum><text display-inline="yes-display-inline">the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act.</text></clause></subparagraph>
<subparagraph id="HB83ABD4FFBA84FACAE96595A4D0002AE"><enum>(B)</enum><header>Concentration limit exception</header><text>The Board may, without regard to paragraph (2), approve an application pursuant to paragraph (1)(A) if—</text> <clause id="H6C7C0C7E87A04DD285E281DE8AEE7837"><enum>(i)</enum><text display-inline="yes-display-inline">the application is for the acquisition of 1 or more banks in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2); or</text></clause>
<clause id="H1B79FC4B3E8646D080B7B362FD1686E3"><enum>(ii)</enum><text display-inline="yes-display-inline">the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2).</text></clause></subparagraph> <subparagraph id="HF9907C812A9549FF89CAC7C6A3FE6BAC" display-inline="no-display-inline"><enum>(C)</enum><header>Qualified bid defined</header><text>In this paragraph, the term <quote>qualified bid</quote> has the meaning given that term in section 18(c)(13)(C) of the Federal Deposit Insurance Act.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause>
<clause id="HE8C3FAB4E6ED49B6B9A69E57FA8978B5"><enum>(ii)</enum><text>in section 4(i)(8), by amending subparagraph (B) to read as follows:</text> <quoted-block style="OLC" id="HFDD63BA1B43640F2BA1A4DF892DCF24A" display-inline="no-display-inline"> <subparagraph id="H8DED307D9DC440CD9891A7910E24EA03"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to an acquisition if—</text>
<clause id="H6BE1150B0C5743BA95A20BA40E66A0C5"><enum>(i)</enum><text display-inline="yes-display-inline">such acquisition involves an insured depository institution in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2); or</text></clause> <clause id="H3CC64411B3DE45628F0B110EE37FBD72"><enum>(ii)</enum><text display-inline="yes-display-inline">the Federal Deposit Insurance Corporation provides assistance under section 13 of the Federal Deposit Insurance Act to facilitate such acquisition and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2). </text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph>
<paragraph id="HBDBB2091EF9D4DB4A8960DE584C7DC67"><enum>(2)</enum><header>Concentration limit with respect to consolidated liabilities</header><text display-inline="yes-display-inline">Section 14(c) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1852">12 U.S.C. 1852(c)</external-xref>) is amended—</text> <subparagraph id="H6F46BBC9332147D2A967DF931F350952"><enum>(A)</enum><text>by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively;</text></subparagraph>
<subparagraph id="H3CCEF6E230604326A0B0EDFEBB44B004"><enum>(B)</enum><text>by striking <quote>With the</quote> and inserting the following:</text> <quoted-block style="OLC" id="HD5E320810C9D49C883BF072407246413" display-inline="no-display-inline"> <paragraph id="H4A955795361E44A7BD8C3451F711FEB3"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">With the</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H7C607ED77D7E434FB1832E8D0461F4BF"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H0BE05F8547B24109BA732E022508290F" display-inline="no-display-inline"> <paragraph id="HF5455D8585624ADABC34E9B969041719"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Board may provide written consent for an acquisition described in paragraph (1)(A) or in paragraph (1)(B) only if the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in subsection (b).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="H293A445205864656ACE6D3B57653F17C"><enum>(b)</enum><header>Congressional notification and justification for waivers</header>
<paragraph id="HA8EA742422D141E79E307DF296703DD9"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Whenever the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or the Federal Deposit Insurance Corporation waives a concentration limit under section 18(c)(13)(B) or section 44(e) of the Federal Deposit Insurance Act or under section 3(d)(5), section 4(i)(8)(B), or section 14(c)(2) of the Bank Holding Company Act of 1956, in connection with the acquisition of a bank or insured depository institution in default or in danger of default, or in connection with an acquisition with respect to which the Federal Deposit Insurance Corporation provides assistance under section 13 of the Federal Deposit Insurance Act, the waiving agency and the Federal Deposit Insurance Corporation, jointly, shall, not later than 30 days after such waiver, submit a written report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs in the Senate containing—</text> <subparagraph id="H6C8E69EC0A19437C84F7D8A4CC6A7EFF"><enum>(A)</enum><text>a justification for the waiver, including an analysis of why it was necessary to prevent significant economic disruption or significant adverse effects on financial stability;</text></subparagraph>
<subparagraph id="H3F63B0BF3CA44B20AF1B1C012100DDC6"><enum>(B)</enum><text>a description of alternative bids or outcomes considered, including efforts to solicit and encourage bids from entities that would not require a waiver;</text></subparagraph> <subparagraph id="HA356BA49DCE546089A20F72902FC02F5"><enum>(C)</enum><text>an explanation of why alternative bids were not selected, if applicable; and</text></subparagraph>
<subparagraph id="H8A827E45AE7F4822927944328CA290FD"><enum>(D)</enum><text>any recommendations for legislative or regulatory changes to improve competition in future insured depository institution resolutions.</text></subparagraph></paragraph> <paragraph id="HD103D277F06A452E9B316CE6E67E4745"><enum>(2)</enum><header>Public disclosure</header><text>The waiving agency submitting a report under paragraph (1) and the Federal Deposit Insurance Corporation shall make the report publicly available on their respective websites, subject to redactions for confidential supervisory information and any other information described under section 552(b) of title 5, United States Code.</text></paragraph></subsection>
<subsection id="H11237F6CA2164441A7E808A5D65E76BF"><enum>(c)</enum><header>Limitation on considering bad faith bids in least cost determination</header><text>Section 13(c)(4) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823(c)(4)</external-xref>), as amended by section 701(a)(3), is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H1A2391408B1747E0BD61A7760582F54F" display-inline="no-display-inline"> <subparagraph id="H6993D4B198D54F19BAC91CEC8F870BE0"><enum>(J)</enum><header>Limitation on considering bad faith bids</header><text display-inline="yes-display-inline">In making a determination under this paragraph of whether an exercise of authority is the least costly to the Deposit Insurance Fund, any application, proposed application, or bid that would result in violation of—</text>
<clause id="HD2B4AF9782F341B09E0BA494A654A761"><enum>(i)</enum><text display-inline="yes-display-inline">section 18(c)(13) or 44(b)(2), or</text></clause> <clause id="H9119EE08E96E44C0AB7CD24B39660AB1"><enum>(ii)</enum><text display-inline="yes-display-inline">section 3(d)(2), 4(i)(8), or 14 of the Bank Holding Company Act of 1956,</text></clause><continuation-text continuation-text-level="subparagraph">shall not be considered a possible method for meeting the Corporation’s obligation under this section for purposes of subparagraph (A).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<enum>VIII</enum><header>Facilitating Innovation and Bank Partnerships</header>
<section id="HD0BBA2C7732C48D3AD0D4330908EDBC7" section-type="subsequent-section"><enum>801.</enum><header>Merchant Banking Modernization</header>
<subsection id="H198E530414274E83ABCBBC4D33B16508"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 4(k)(7)(A) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1843">12 U.S.C. 1843(k)(7)(A)</external-xref>) is amended by inserting <quote>Under such regulations, the period of time generally permitted for holding merchant banking investments shall not be less than 15 years. For any merchant banking investment held on the date of enactment of the Main Street Act, the holding period of time permitted shall not be less than 15 years from the initial date of the investment.</quote> after the period at the end.</text></subsection> <subsection id="HCC48DE8489294D3B9094E887396C82BC"><enum>(b)</enum><header>Merchant banking study</header> <paragraph id="H8FB481E963CE4803BC7230E744DA15C5"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall carry out a study on merchant banking investments to assess—</text>
<subparagraph id="H5080079CB9514CDEA57819D81B5D11FC"><enum>(A)</enum><text display-inline="yes-display-inline">the number, investment size, holding period, and risk characteristics of merchant banking investments by financial holding companies, with the assessment of investment sizes and holding periods based on the average, median, and distribution of the investment sizes and holding periods;</text></subparagraph> <subparagraph id="H9DE339E84644446AB92806CD27B01DD8"><enum>(B)</enum><text display-inline="yes-display-inline">the types of businesses, projects, assets, and activities in which such merchant banking investments are made, including the extent to which such merchant banking investments support infrastructure projects and housing development and construction; and</text></subparagraph>
<subparagraph id="HC5B6D2108B354D8E8CC8269DB1B088E1"><enum>(C)</enum><text display-inline="yes-display-inline">any information, analyses, or findings related to merchant banking investments that the Board determines to be relevant.</text></subparagraph></paragraph> <paragraph id="H6392B1BE48B747F6AD3224CBF67F494B"><enum>(2)</enum><header>Report</header><text>Not later than the end of the 18-month period beginning on the date of enactment of this Act, the Board shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under this subsection.</text></paragraph></subsection></section>
<section id="HFFCBC186D0EB44BB80D505D9D1BB2EBF"><enum>802.</enum><header>Bank-Fintech Partnership Enhancement</header>
<subsection id="HB3F492344F6B45A99E825E1510BD02A0"><enum>(a)</enum><header>Study on bank-Fintech partnerships</header>
<paragraph id="H6B7C09A74ED4479B9FB3FF3040BBEB5A"><enum>(1)</enum><header>Study</header><text display-inline="yes-display-inline">The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall carry out a study of—</text> <subparagraph id="H3D3B35129FA5429F83B9C02BA062F562"><enum>(A)</enum><text display-inline="yes-display-inline">the impact of partnerships between banking organizations, on the one hand, and financial technology companies, on the other hand, on the banking sector, competition, innovation, consumer protection, and the availability of financial products and services, including the extent to which these partnerships support the formation of new banking organizations, reduce time to market for products and services, lower compliance burdens, boost customer acquisition, improve technological capabilities, and provide access to more diverse funding sources; and</text></subparagraph>
<subparagraph id="HE8568E575983485BA57AEB62D8565A66"><enum>(B)</enum><text display-inline="yes-display-inline">what changes to Federal laws governing banking organizations, or to rules or guidance adopted by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or the Federal Deposit Insurance Corporation, may help promote effective partnerships between banking organizations, on the one hand, and financial technology companies, on the other hand.</text></subparagraph></paragraph> <paragraph id="HE2A9C03BC53542B3AB80543FAAB8D7A5"><enum>(2)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).</text></paragraph>
<paragraph id="H33707F14FF9B4F43BCB13E8362B7EA2B"><enum>(3)</enum><header>Banking organization defined</header><text>In this subsection, the term <term>banking organization</term> means a depository institution holding company or an insured depository institution, as such terms are defined, respectively, under section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>).</text></paragraph></subsection> <subsection id="H838B628DE15B47E494381C4F2E0374B0"><enum>(b)</enum><header>Study on credit union-Fintech partnerships</header> <paragraph id="H7FE710B04AC24B8395E0A5120C26211E"><enum>(1)</enum><header>Study</header><text display-inline="yes-display-inline">The National Credit Union Administration shall carry out a study of—</text>
<subparagraph id="H2F6E42F2517B49F280C6680031574BB9"><enum>(A)</enum><text>the impact of partnerships between credit unions, on the one hand, and financial technology companies, on the other hand, on the credit union sector, competition, innovation, consumer protection, and the availability of financial products and services, including the extent to which these partnerships support the formation of new credit unions, reduce time to market for products and services, lower compliance burdens, boost customer acquisition, improve technological capabilities, and provide access to more diverse funding sources; and</text></subparagraph> <subparagraph id="H2DA31EA171B74E5785E4C44F5C4ACBFC"><enum>(B)</enum><text>what changes to Federal laws governing credit unions, or to rules or guidance adopted by the National Credit Union Administration, may help promote effective partnerships between credit unions, on the one hand, and financial technology companies, on the other hand.</text></subparagraph></paragraph>
<paragraph id="H5965360616B24C6A96558F593886AB70"><enum>(2)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).</text></paragraph></subsection></section> <section id="H0212D87032E14A98A2D94EFEE345C98C"><enum>803.</enum><header>Discretionary surplus fund</header> <subsection id="H173941E28F7247EE80F09C5B9EC27451"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/289">12 U.S.C. 289(a)(3)(A)</external-xref>) is reduced by $425,000,000.</text></subsection>
<subsection id="HE71D7339C9C74D1880A4E37B9069F9D7"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect on September 1, 2036. </text></subsection></section> Passed the House of Representatives July 21, 2026.Kevin F. McCumber,Clerk.