[Congressional Record Volume 140, Number 29 (Wednesday, March 16, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 16, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                          AMENDMENTS SUBMITTED

                                 ______


  COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS ACT OF 1993

                                 ______


             RIEGLE (AND D'AMATO) AMENDMENT NOS. 1523-1526

  Mr. RIEGLE (for himself and Mr. D'Amato) proposed four amendments to 
the bill (S. 1275) to facilitate the establishment of community 
development financial institutions; as follows:
       On page 41, line 18, insert ``a quasi-governmental 
     entity,'' after ``agency,''.
       On page 44, line 4, strike ``and'' and insert ``or''.
       On page 44, strike line 17, and insert ``any class of the 
     voting shares of such corporation, and does not otherwise 
     control in any manner the election of a majority of the 
     directors of the corporation.''.
       On page 52, beginning on line 13, strike ``State, and 
     local'' and insert ``State, local, and tribal government''.
       On page 54, between lines 2 and 3, insert the following:
       (c) Exception.--
       (1) In general.--Notwithstanding subsection (b)(1), in the 
     case of a State in which there is no existing community 
     development financial institution in operation on the date of 
     enactment of this Act, an applicant may be an agency or 
     instrumentality of a State government if--
       (A) such an entity has a primary mission of promoting 
     community development;
       (B) any assistance received is used to establish a 
     community development financial institution;
       (C) there is no nongovernment entity within the State that 
     possesses the capacity to become a community development 
     financial institution;
       (D) no other agency or instrumentality of the same State 
     has received assistance; and
       (E) assistance received will not reduce the amount of State 
     funds that otherwise would be appropriated to such an entity.
       (2) Majority ownership.--An agency or instrumentality 
     eligible to apply pursuant to paragraph (1) may own a 
     majority of the voting stock of a community development 
     financial institution if it demonstrates that there is a lack 
     of nonpublic sources of capital available to establish a 
     community development financial institution.
       (3) Amount of assistance.--No State agency or 
     instrumentality and a community development financial 
     institution, a majority of the shares of which are owned by 
     such an agency or instrumentality pursuant to this 
     subsection, may cumulatively receive assistance exceeding the 
     amount set forth under section 108(d)(1).
       On page 54, line 3, strike ``(c)'' and insert ``(d)''.
       On page 59, line 17, strike ``offered'' and insert 
     ``provided''.
       On page 61, line 1, before the first comma insert ``and its 
     affiliates''.
       On page 61, strike lines 9 through 22, and insert the 
     following:
       (e) Matching Requirements.--
       (1) In general.--Assistance other than technical assistance 
     shall be matched with funds from sources other than the 
     Federal Government on the basis of not less than one dollar 
     for each dollar provided by the Fund. Such matching funds 
     shall be at least comparable in form and value to assistance 
     provided by the Fund. The Fund shall provide no assistance 
     (other than technical assistance) until a community 
     development financial institution has secured firm 
     commitments for the matching funds required.
       (2) Exception.--In the case of an applicant with severe 
     constraints on available sources of matching funds, the Fund 
     may permit an applicant to comply with the matching 
     requirements of paragraph (1) by--
       (A) reducing such matching requirement by 50 percent;
       (B) permitting such applicant to satisfy not more than 60 
     percent of the matching requirement through use of assistance 
     made available pursuant to--
       (i) section 106 of the Housing and Community Development 
     Act of 1974;
       (ii) section 623(c)(1) of the Community Economic 
     Development Act of 1981; or
       (iii) section 310B(c) of the Consolidated Farm and Rural 
     Development Act; or
       (C) permitting an applicant to provide matching funds in a 
     form to be determined at the discretion of the Fund if such 
     applicant--
       (i) has total assets of less than $100,000;
       (ii) serves nonmetropolitan areas; and
       (iii) is not requesting more than $25,000 in assistance.
       (3) Limitation.--Not more than 25 percent of the total 
     funds disbursed in any fiscal year by the Fund may be matched 
     as authorized under paragraph (2).
       (4) Construction of ``federal funds''.--For purposes of 
     this subsection, notwithstanding section 105(a)(9) of the 
     Housing and Community Development Act of 1974, funds provided 
     pursuant to such Act shall be considered to be Federal funds, 
     except as provided in paragraph (2)(B).
       On page 64, between lines 16 and 17, insert the following:
       (E) Native american institutions.--In the case of a 
     community development financial institution which serves an 
     investment area described in paragraph (11)(C) of section 
     103, or an Indian tribe, as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act, the 
     Fund shall consult with the applicable tribal government in 
     evaluating the institution's compliance with the performance 
     goals established pursuant to subparagraph (B).
       On page 67, between lines 23 and 24, insert the following:
       (2) User profile information.--The Fund shall require each 
     community development financial institution receiving 
     assistance under this subtitle to compile and maintain data 
     on the gender, race, ethnicity, national origin, and other 
     pertinent information concerning individuals that utilize the 
     services of the assisted institution to ensure that targeted 
     populations and low-income residents of investment areas are 
     adequately served.
       On page 67, line 24, strike ``(2)'' and insert ``(3)''.
       On page 68, line 4, strike ``(3)'' and insert ``(4)''.
       On page 68, line 10, strike ``(4)'' and insert ``(5)''.
       On page 69, between lines 16 and 17, insert the following:
       (2) Native american lending study.--
       (A) Study.--The Fund shall conduct a study on lending and 
     investment practices on Indian reservations and other land 
     held in trust by the United States Government. Such study 
     shall--
       (i) identify barriers to private financing on such lands; 
     and
       (ii) identify the impact of such barriers on access to 
     capital and credit for Native American populations.
       (B) Consultation with private sector.--In conducting the 
     study under subparagraph (A), the Fund shall consult with 
     tribal governments, private citizens, and organizations that 
     possess expertise in lending and community development issues 
     confronted by Native American populations.
       (C) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Fund shall submit a report to the 
     President and the Congress that--
       (i) contains the findings of the study conducted under 
     subparagraph (A);
       (ii) recommends any necessary statutory and regulatory 
     changes to existing Federal programs; and
       (iii) makes policy recommendations for community 
     development financial institutions, insured depository 
     institutions, secondary market institutions, and other 
     private sector capital institutions to better serve such 
     populations.
       On page 69, line 17, strike ``(2)'' and insert ``(3)''.
       Beginning on page 75, line 23, strike all through page 77, 
     line 2.
       On page 77, line 3, strike ``118'' and insert ``117''.
       On page 77, line 8, strike ``119'' and insert ``118''.
       Beginning with page 78, line 24, strike all through page 
     79, line 2, and insert the following: ``consumer credit 
     transaction that is secured by the consumer's principal 
     dwelling, other than a residential mortgage transaction, a 
     reverse mortgage transaction, or a transaction under an open 
     end credit plan, if--''.
       On page 80, line 12, strike the comma.
       On page 88, between lines 6 and 7, insert the following new 
     section:

     SEC. 153. REVERSE MORTGAGE DISCLOSURE.

       (a) Definition of Reverse Mortgage.--Section 103 of the 
     Truth in Lending Act (15 U.S.C. 1602) is amended by adding at 
     the end the following new subsection:
       ``(bb) The term `reverse mortgage transaction' means a 
     nonrecourse transaction in which a mortgage, deed of trust, 
     or equivalent consensual security interest is created against 
     the consumer's principal dwelling--
       ``(1) securing one or more advances; and
       ``(2) with respect to which the payment of any principal, 
     interest, and shared appreciation is due and payable (other 
     than in the case of default) only after--
       ``(A) the transfer of the dwelling;
       ``(B) the consumer ceases to occupy the dwelling as a 
     principal dwelling; or
       ``(C) the death of the consumer.''.
       (b) Disclosure.--Chapter 2 of title I of the Truth in 
     Lending Act (15 U.S.C. 1631 et seq.) is amended by adding at 
     the end the following new section:

     ``SEC. 138. REVERSE MORTGAGES.

       ``(a) In General.--In addition to the disclosures required 
     under this title, for each reverse mortgage, the creditor 
     shall, not less than 3 days prior to consummation of the 
     transaction, disclose to the consumer in conspicuous type a 
     good faith estimate of the projected total cost of the 
     mortgage to the consumer expressed as a table of annual 
     interest rates. Each annual interest rate shall be based on a 
     projected total future loan balance under a projected 
     appreciation rate for the dwelling and a term for the 
     mortgage. The disclosure shall include--
       ``(1) statements of the annual interest rates for not less 
     than 3 projected appreciation rates and not less than 3 loan 
     periods, as determined by the Board, including--
       ``(A) a short-term reverse mortgage;
       ``(B) a term equaling the actuarial life expectancy of the 
     consumer; and
       ``(C) such longer term as the Board deems appropriate; and
       ``(2) a statement that the consumer is not obligated to 
     complete the reverse mortgage transaction merely because the 
     consumer has received the disclosure required under this 
     section or has signed a loan application.
       ``(b) Projected Total Cost.--In determining the projected 
     total cost of the mortgage to be disclosed to the consumer 
     under subsection (a), the creditor shall take into account--
       ``(1) any shared appreciation that the lender will, by 
     contract, be entitled to receive;
       ``(2) all costs and charges to the consumer, including the 
     costs of any associated annuity that the consumer elects or 
     is required to purchase as part of the reverse mortgage 
     transaction;
       ``(3) all payments to and for the benefit of the consumer, 
     including, in the case in which an associated annuity is 
     purchased (whether or not required by the lender as a 
     condition of making the reverse mortgage), the annuity 
     payments received by the consumer and financed from the 
     proceeds of the loan, instead of the proceeds used to finance 
     the annuity; and
       ``(4) any limitation on the liability of the consumer under 
     reverse mortgage transactions (such as nonrecourse limits and 
     equity conservation agreements).''.
       (c) Table of Sections.--The table of sections at the 
     beginning of chapter 2 of the Truth in Lending Act is amended 
     by inserting after the item relating to section 137 the 
     following:
``138. Reverse mortgages.''.
       On page 88, strike line 7 and insert the following:

     SEC. 154. REGULATIONS; EFFECTIVE DATE.

       On page 89, line 2, strike ``(a) Definition.--''.
       On page 89, line 10, strike ``evidencing the indebtedness'' 
     and insert ``or leases of personal property evidencing the 
     obligation''.
       On page 89, line 15, insert ``or leasing company'' after 
     ``company''.
       On page 89, line 18, insert ``or leases of personal 
     property'' after ``notes''.
       On page 89, line 19, insert ``or lessee'' after ``issuer''.
       On page 89, line 21, insert ``or leases'' after ``notes''.
       On page 89, line 24, insert ``or a lease of personal 
     property'' after ``note''.
       On page 89, line 26, insert ``or leases'' after ``notes''.
       On page 90, line 1, insert ``or leases'' after ``notes''.
       On page 90, line 3, insert ``or leases'' after ``notes''.
       On page 90, strike lines 13 through 18.
       On page 95, line 17, strike ``LOANS'' and insert 
     ``OBLIGATIONS''.
       On page 95, line 20, insert ``or a lease of personal 
     property'' before ``with''.
       On page 95, line 25, insert ``or lease of personal 
     property'' after ``loan''.
       On page 96, line 23, insert ``and leases of personal 
     property'' after ``loans''.
       On page 97, line 11, insert ``or leases of personal 
     property'' after ``loans''.
       On page 98, line 6, insert ``and leases of personal 
     property'' before ``with''.
       On page 98, line 12, insert ``and leases of personal 
     property'' after ``loans''.
       Beginning with page 100, line 20, strike all through page 
     102, line 9, and insert the following:

     SEC. 210. SENSE OF THE SENATE ON TAXATION OF SMALL BUSINESS 
                   LOAN INVESTMENT CONDUITS.

       (a) Sense of the Senate.--It is the sense of the Senate 
     that the taxation of a small business loan investment conduit 
     and the holder of an interest therein should be similar to 
     the taxation of a real estate mortgage investment conduit and 
     the holder of an interest therein under the Internal Revenue 
     Code of 1986, taking into account--
       (1) the purpose of facilitating the securitization of small 
     business loans and leases or personal property through the 
     use of small business loan investment conduits and the 
     development of a secondary market in small business loans and 
     leases of personal property;
       (2) differences in the nature of qualifying mortgages in a 
     real estate mortgage investment conduit and small business 
     loans and leases of personal property; and
       (3) differences in the practices of participants in the 
     securitization of real estate mortgages in a real estate 
     mortgage investment conduit and the securitization of other 
     assets.
       (b) Small Business Loan Investment Conduit Defined.--For 
     purposes of this section, the term ``small business loan 
     investment conduit'' means any entity substantially all of 
     the assets of which consist of an interest in one or more 
     promissory notes as leases of personal property evidencing 
     the obligation (including any participation or certificate of 
     beneficial ownership therein)--
       (1) of a business that meets the criteria of a small 
     business concern established under section 3(a) of the Small 
     Business Act; and
       (2) that was originated by an insured depository 
     institution (as defined in section 3 of the Federal Deposit 
     Insurance Act), credit union, insurance company, or similar 
     institution which is supervised and examined by a Federal or 
     State authority, or a finance company or leasing company.
       On page 106, strike lines 22 and 23, and insert the 
     following:
       (11) the term `State' means--
       (A) a State of the United States;
       (B) the District of Columbia;
       (C) any political subdivision of a State of the United 
     States, which subdivision has a population in excess of the 
     population of the least populated State of the United States; 
     and
       (D) any other political subdivision of a State of the 
     United States that the Secretary determines has the capacity 
     to participate in the program.
       On page 111, lines 12 and 13, strike ``subject to the 
     control'' and insert ``the exclusive property''.
       On page 111, beginning on line 13, strike 
     ``Notwithstanding'' and all that follows through the period 
     on line 18.
       On page 112, strike lines 15 and 16 and insert ``tion 
     agreement, provide authority for the participating State''.
       On page 112, line 18, strike ``; and'' and insert a period.
       Beginning with page 112, line 19, strike all that follows 
     through page 113, line 2.
       On page 122, lines 13 and 14, strike ``(1) Withdrawals 
     based on outstanding balance.--''.
       Beginning with page 122, line 24, strike all through page 
     123, line 8.
       On page 123, between lines 8 and 9, insert the following:
       (s) Grandfathered Provision.--
       (1) Special treatment of premium charges.--Notwithstanding 
     subsection (b) or (d), the participation agreement, if 
     explicitly authorized by a statute enacted by the State 
     before the date of enactment of this Act, may allow a 
     participating financial institution to treat the premium 
     charges paid by the participating financial institution and 
     the borrower into the reserve fund, and interest or income 
     earned on funds in the reserve fund that are deemed to be 
     attributable to such premium charges, as assets of the 
     participating financial institution for accounting purposes, 
     subject to withdrawal by the participating financial 
     institution only--
       (A) for the payment of claims approved by the participating 
     State in accordance with this section; and
       (B) upon the participating financial institution's 
     withdrawal from authority to make new loans under the 
     Program.
       (2) Payment of post-withdrawal claims.--After any 
     withdrawal of assets from the reserve fund pursuant to 
     paragraph (1)(B), any future claims filed by the 
     participating financial institution on loans remaining in its 
     capital access program portfolio shall only be paid from 
     funds remaining in the reserve fund to the extent that, in 
     the aggregate, such claims exceed the sum of the amount of 
     such withdrawn assets, and interest on that amount, imputed 
     at the same rate as income would have accrued had the amount 
     not been withdrawn.
       (3) Conditions for terminating special authority.--If the 
     Secretary determines that the inclusion in a participation 
     agreement of the provisions authorized by this subsection is 
     resulting in the enrollment of loans under the Program that 
     are likely to have been made without assistance provided 
     under this subtitle, the Secretary may notify the 
     participating State that henceforth, the Secretary will only 
     make reimbursements to the State under section 257 with 
     respect to a loan if the participation agreement between the 
     participating State and each participating financial 
     institution has been amended to conform with this section, 
     without exercise of the special authority granted by this 
     subsection.
       Beginning with page 139, line 21, strike all through page 
     140, line 10, and insert the following:
       ``(C)(i) has total assets, as of the beginning of such 
     fiscal year, of more than $9,000,000,000;
       ``(ii) has a CAMEL composite rating of 1 or 2 under the 
     Uniform Financial Institutions Rating System (or an 
     equivalent rating by any such agency under a comparable 
     rating system) as of the most recent examination of such 
     institution by the Corporation or the appropriate Federal 
     banking agency; and
       ``(iii) is well capitalized, as defined in section 38, and 
     well managed.

     Notwithstanding paragraph (2)(C), in the case of an insured 
     depository institution that the Corporation determines to be 
     a large institution, the audit committee of the holding 
     company of such an institution shall not include any large 
     customers of the institution.''.
       On page 143, line 11, strike ``of'' and insert ``such 
     agreement was not executed contemporaneously with the 
     acquisition of the collateral or with any''.
       On page 143, strike lines 14 through 20, and insert the 
     following:
       (a) In General.--Section 39(b) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1831p-1(b)), as added by section 
     132(a) of the Federal Deposit Insurance Corporation 
     Improvements Act of 1991) is amended to read as follows:
       ``(b) Asset Quality, Earnings, and Stock Valuation 
     Standards.--Each appropriate Federal banking agency shall, 
     for all insured depository institutions and depository 
     institution holding companies, prescribe standards relating 
     to asset quality, earnings, and stock valuation that the 
     agency determines to be appropriate.''.
       (b) Establishing Standards in Guidelines.--Section 39(d) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1831p-1(d)) is 
     amended--
       (1) in the subsection heading, by striking ``by 
     Regulation''; and
       (2) in paragraph (1)--
       (A) in the first sentence, by inserting ``or guideline'' 
     before the period; and
       (B) in the second sentence, by inserting ``or guidelines'' 
     after ``Such regulations''.
       On page 143, line 21, strike ``(b)'' and insert ``(c)''.
       On page 143, line 22, strike ``section (a)'' and insert 
     ``sections (a) and (b)''.
       On page 147, strike lines 15 through 17 and insert the 
     following:
       (B) by striking ``services for other depository 
     institutions and their officers, directors and employees'' 
     and inserting the following: ``services to or for other 
     depository institutions and the officers, directors, and 
     employees of such institutions, and in providing 
     correspondent banking services at the request of other 
     depository institutions (also referred to as a `banker's 
     bank')''.
       On page 148, strike lines 1 through 3 and insert the 
     following:
       (B) by striking ``services for other depository 
     institutions and their officers, directors and employees'' 
     and inserting the following: ``services to or for other 
     depository institutions and the officers, directors, and 
     employees of such institutions, and in providing 
     correspondent banking services at the request of other 
     depository institutions (also referred to as a `banker's 
     bank')''.
       On page 149, between lines 2 and 3, insert the following:
       (d) Lending Limit for Loans Secured by Securities.--Section 
     11(m) of the Federal Reserve Act (12 U.S.C. 248(m)) is 
     amended by striking ``10 percentum'' each place such term 
     appears and inserting ``15 percent''.
       On page 154, strike line 6, and insert the following: ``and 
     the Comptroller of the Currency may jointly prescribe such 
     regulations as they deem necessary to im-''.
       On page 160, between lines 6 and 7, insert the following:

     SEC. 334. EXEMPTION FOR BUSINESS ACCOUNTS.

       Section 274(1) of the Truth in Savings Act (12 U.S.C. 
     4313(1)) is amended to read as follows:
       ``(1) Account.--The term `account' means any account 
     intended for use by and generally used by consumers primarily 
     for personal, family, or household purposes that is offered 
     by a depository institution into which a consumer deposits 
     funds, including demand accounts, time accounts, negotiable 
     order of withdrawal accounts, and share draft accounts.''.

     SEC. 335. BOARD DISCRETION REGARDING CHECK-RELATED FRAUD.

       Section 604(e) of the Expedited Funds Availability Act (12 
     U.S.C. 4003(e)) is amended by adding at the end the following 
     new paragraph:
       ``(4) Prevention of check-related losses.--
       ``(A) In general.--The Board may, by regulation or order, 
     extend the 1-business-day period specified in section 
     603(b)(1), regarding availability of funds deposited by local 
     checks, to 2 business days if the Board determines that--
       ``(i) there is a pattern of significant increases in check-
     related losses at depository institutions attributable to the 
     provisions of this title; and
       ``(ii) such action is necessary to diminish the volume of 
     such check-related losses.
       ``(B) Limitation on other authority.--The authority of the 
     Board under paragraph (1) shall not apply to the 
     applicability of section 603(b)(1) or the time period 
     specified therein.''.

     SEC. 336. CIVIL LIABILITY UNDER TRUTH IN SAVINGS.

       Section 271(a)(2)(A) of the Truth in Savings Act (12 U.S.C. 
     4310(a)(2)(A)) is amended by inserting ``(other than an 
     action based on a violation of section 263)'' after 
     ``individual action''.

     SEC. 337. ELIMINATION OF PRIOR APPROVAL REQUIREMENT FOR 
                   CERTAIN LOANS UNDER THE FEDERAL RESERVE ACT.

       Section 22(g)(2) of the Federal Reserve Act (12 U.S.C. 
     375a(2)) is amended by striking ``With the specific prior 
     approval of its board of directors, a member'' and inserting 
     ``A member''.

     SEC. 338. REVISIONS OF STANDARDS.

       Section 305(b)(1) of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991 (12 U.S.C. 1828 note) is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) take into account the size and activities of the 
     institutions and do not cause undue reporting burdens.''.

     SEC. 339. ALTERNATIVE RULES FOR RADIO ADVERTISING OF CONSUMER 
                   LEASES.

       Section 184 of the Truth in Lending Act (15 U.S.C. 1667c) 
     is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection:
       ``(b)  Radio Advertisements.--
       ``(1) In general.--An advertisement by radio broadcast to 
     aid, promote, or assist, directly or indirectly, any consumer 
     lease shall be deemed to be in compliance with the 
     requirements of subsection (a) if such advertisement clearly 
     and conspicuously--
       ``(A) states the information required by paragraphs (1) and 
     (2) of subsection (a);
       ``(B) states the number, amounts, due dates, or periods of 
     scheduled payments, and the total of such payments under the 
     lease; and
       ``(C) includes--
       ``(i) a referral to--

       ``(I) a toll-free telephone number established in 
     accordance with paragraph (2) that may be used by consumers 
     to obtain the information required under subsection (a); or
       ``(II) a written advertisement that--

       ``(aa) appears in a publication in general circulation in 
     the community served by the radio station on which such 
     advertisement is broadcast during the period beginning 3 days 
     before any such broadcast and ending 10 days after such 
     broadcast; and
       ``(bb) includes the information required to be disclosed 
     under subsection (a); and
       ``(ii) the name and dates of any publication referred to in 
     clause (i)(II); and
       ``(D) includes any other information which the Board 
     determines necessary to carry out this chapter.
       ``(2) Establishment of toll-free number.--
       ``(A) In general.--In the case of a radio broadcast 
     advertisement described in paragraph (1) that includes a 
     referral to a toll-free telephone number, the lessor who 
     offers the consumer lease shall--
       ``(i) establish such a toll-free telephone number not later 
     than the date on which the advertisement including the 
     referral is broadcast;
       ``(ii) maintain such telephone number for not less than 10 
     days, beginning on the date of any such broadcast; and
       ``(iii) provide the information required under subsection 
     (a) with respect to the lease to any person who calls such 
     number.
       ``(B) Form of information.--The information required to be 
     provided under subparagraph (A)(iii) shall be provided orally 
     or, if requested by the consumer, in written form.
       ``(3) No effect on other law.--Nothing in this subsection 
     shall affect the requirements of Federal law as such 
     requirements apply to advertisement by any other medium.''.

     SEC. 340. DEPOSIT BROKER REGISTRATION.

       Section 29(g)(3) of the Federal Deposit Insurance Act (12 
     U.S.C. 1831f(g)(3)) is amended--
       (1) by inserting ``that is not well capitalized'' after 
     ``includes any insured depository institution'';
       (2) by striking ``of any insured depository'' and inserting 
     ``of such'';
       (3) by striking ``(with respect to such deposits)''; and
       (4) by striking ``having the same type of charter''.

     SEC. 341. EXTENSION OF MANAGEMENT INTERLOCKS GRANDFATHER 
                   CLAUSE.

       Subsections (a) and (b) of section 206 of the Depository 
     Institution Management Interlocks Act (12 U.S.C. 3205) are 
     each amended by striking ``15 years'' and inserting ``20 
     years''.
       Amend the table of contents accordingly.
                                  ____


                           Amendment No. 1524

       On page 78, line 23, strike ``The term `high cost mortgage' 
     means'' and insert ``A mortgage referred to in this 
     subsection means''.
       On page 78, line 25, insert ``, a reverse mortgage 
     transaction,'' before ``or a''.
       On page 79, line 22, insert ``and'' after the semicolon.
       On page 79, strike lines 23 through 25.
       On page 80, line 1, strike ``(D) and insert ``(C)''.
       On page 80, line 14, strike ``for high cost mortgages''.
       On page 80, line 19, strike ``high cost mortgages'' and 
     insert ``mortgages referred to in subsection (aa)''.
       On page 80, beginning on line 20, strike ``high cost'' and 
     insert ``such''.
       On page 81, line 3, strike ``HIGH COST'' and insert 
     ``CERTAIN''.
       On page 81, line 7, strike ``high cost mortgage'' and 
     insert ``mortgage referred to in section 103(aa)''.
       On page 82, line 22, strike ``high cost mortgage'' and 
     insert ``mortgage referred to in section 103(aa)''.
       On page 83, beginning on line 1, strike ``the high cost 
     mortgage'' and insert ``a mortgage referred to in section 
     103(aa)''.
       On page 79, line 25, strike ``and''
       On page 80 line 8, strike ``.'' and insert ``; and (E) such 
     other changes as the Board determines to be appropriate.''
       On page 83, line 5, strike ``high cost'' and insert 
     ``such''.
       On page 83, strike lines 14 through 19.
       On page 83, line 20, strike ``(4) Exception.--A high cost 
     mortgage'' and insert ``(3) Exception.--A mortgage referred 
     to in section 103(aa)''.
       On page 83, line 24, strike ``90 days'' and insert ``1 
     year''.
       On page 84, line 1, strike ``high cost mortgage'' and 
     insert ``mortgage referred to in section 103(aa) having a 
     term of less than 5 years''.
       On page 84, beginning on line 5, strike ``high cost 
     mortgage'' and insert ``mortgage referred to in section 
     103(aa)''.
       On page 84, line 10, strike ``high cost mortgage'' and 
     insert ``mortgage referred to in section 103(aa)''.
       On page 84, line 16, strike ``high cost mortgage loan'' and 
     insert ``mortgage''.
       On page 85, strike lines 11 through 15, and insert the 
     following:
       ``(2) Prohibitions.--The Board, by regulation or order, 
     shall prohibit acts or practices in connection with--
       ``(A) mortgage loans that the Board finds to be unfair, 
     deceptive, or designed to evade the provisions of this 
     section; and
       ``(B) refinancing of mortgage loans that the Board finds to 
     be associated with abusive lending practices, or that are 
     otherwise not in the interest of the borrower.''.
       On page 85, strike the item immediately following line 20, 
     and insert the following:

``129. Requirements for certain mortgages.''.

       On page 85, beginning on line 24, strike ``high cost 
     mortgage, as defined'' and insert ``mortgage referred to''.
       Beginning on page 87, line 14, strike all through page 88, 
     line 6, and insert the following:
       ``(d) Rights Upon Assignment of Certain Mortgages--
       ``(1) In general.--Any person who purchases or is otherwise 
     assigned a mortgage referred to in section 103(aa) shall be 
     subject to all claims and defenses with respect to that 
     mortgage that the consumer could assert against the creditor 
     of the mortgage, unless the purchaser or assignee 
     demonstrates, by a preponderance of the evidence, that a 
     reasonable person exercising ordinary due diligence, could 
     not determine, based on the loan documentation required by 
     this title, that the mortgage was in fact a mortgage referred 
     to in section 103(aa). The preceding sentence does not affect 
     a consumer's rights under sections 125, 130, or any other 
     provision of this title.
       ``(2) Limitation on damages.--Notwithstanding any other 
     provision of law, relief provided as a result of any action 
     made permissible by paragraph (1) may not exceed--
       ``(A) with respect to actions based upon a violation of 
     this title, the amount specified in section 130; and
       ``(B) with respect to all other causes of action, the sum 
     of--
       ``(i) the amount of all remaining indebtedness; and
       ``(ii) the total amount paid by the consumer in connection 
     with the transaction.
       ``(3) Offset.--The amount of damages that may be awarded 
     under paragraph (2)(B) shall be reduced by the amount of any 
     damages awarded under paragraph (2)(A).
       ``(4) Notice.--Any person who sells or otherwise assigns a 
     mortgage referred to in section 103(aa) shall include a 
     prominent notice of the potential liability under this 
     subsection as determined by the Board.''.
       On page 88, line 13, strike ``high cost''.
       On page 88, line 14, strike ``(as defined'' and insert 
     ``referred to''.
       On page 88, line 15, strike ``Act, as'' and insert ``Act 
     (as''.
                                  ____


                           Amendment No. 1525

       On page 160, between lines 6 and 7, insert the following 
     new title:
               TITLE IV--FAIR TRADE IN FINANCIAL SERVICES

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Fair Trade in Financial 
     Services Act of 1994''.

     SEC. 402. EFFECTUATING THE PRINCIPLE OF NATIONAL TREATMENT 
                   FOR BANKING ORGANIZATIONS.

       The International Banking Act of 1978 (12 U.S.C. 3101 et 
     seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 18. NATIONAL TREATMENT.

       ``(a) Purpose.--The purpose of this section is to encourage 
     foreign countries to accord national treatment to United 
     States banking organizations that operate or seek to operate 
     in those countries.
       ``(b) Identifying Countries That Deny National Treatment to 
     United States Banks or Bank Holding Companies.--The Secretary 
     shall identify the extent to which foreign countries deny 
     national treatment to United States banking organizations--
       ``(1) according to the most recent report under section 
     3602 of the Omnibus Trade and Competitiveness Act of 1988 (or 
     update thereof); or
       ``(2) based on more recent information that the Secretary 
     deems appropriate.
       ``(c) Determining Whether Denial of National Treatment Has 
     Significant Adverse Effect.--
       ``(1) In general.--The Secretary shall determine whether 
     the denial of national treatment to United States banking 
     organizations by a foreign country identified under 
     subsection (b) has a significant adverse effect on such 
     organizations.
       ``(2) Factors to be considered.--In determining whether and 
     to what extent a foreign country denies national treatment to 
     United States banking organizations, and in determining the 
     effect of any such denial on such banking organizations, the 
     Secretary shall consider appropriate factors, including--
       ``(A) the size of the foreign country's markets for the 
     financial services involved, and the extent to which United 
     States banking organizations operate or seek to operate in 
     those markets;
       ``(B) the extent to which United States banking 
     organizations may participate in developing regulations, 
     guidelines, or other policies regarding new products, 
     services, and markets in the foreign country;
       ``(C) the extent to which the foreign country issues 
     written regulations, guidelines, or other policies applicable 
     to United States banking organizations operating or seeking 
     to operate in the foreign country that are--
       ``(i) prescribed after adequate notice and opportunity for 
     comment;
       ``(ii) readily available to the public; and
       ``(iii) prescribed in accordance with objective standards 
     that effectively prevent arbitrary and capricious 
     determinations;
       ``(D) the extent to which United States banking 
     organizations may offer foreign exchange services in the 
     foreign country; and
       ``(E) the effects of the regulatory policies of the foreign 
     country on--
       ``(i) the lending policies of the central bank of that 
     country;
       ``(ii) capital requirements applicable in that country;
       ``(iii) the regulation of deposit interest rates by that 
     country;
       ``(iv) restrictions on the operation and establishment of 
     branches in that country; and
       ``(v) restrictions on access to automated teller machine 
     networks in that country.
       ``(d) Publication of Determination.--
       ``(1) In general.--If the Secretary determines under 
     subsection (c) that the denial of national treatment to 
     United States banking organizations by a foreign country has 
     a significant adverse effect on such organizations, the 
     Secretary--
       ``(A) may, after initiating negotiations in accordance with 
     subsection (g), and after consultation in accordance with 
     subsection (i), publish that determination in the Federal 
     Register;
       ``(B) shall, not less frequently than annually, in 
     consultation with any department or agency that the Secretary 
     deems appropriate, review each such determination to 
     determine whether it should be rescinded; and
       ``(C) shall inform State bank supervisors of the 
     publication of that determination.
       ``(2) Exception for countries that are parties to certain 
     agreements governing financial services.--Paragraph (1) shall 
     not apply to a foreign country to the extent that a 
     determination under that paragraph with respect to the 
     foreign country would permit action to be taken under this 
     section that would be inconsistent with a bilateral or 
     multilateral agreement that governs financial services that--
       ``(A) the President entered into with that country; and
       ``(B) the Senate and the House of Representatives approved;
     before the date of enactment of this section.
       ``(e) Sanctions.--
       ``(1) Action by secretary of treasury.--
       ``(A) In general.--The Secretary may, after consultation in 
     accordance with subsection (i), recommend to the appropriate 
     Federal banking agency that such agency deny or suspend 
     consideration of a request for authorization filed after the 
     date of publication of a determination under subsection 
     (d)(1) by a person of a foreign country listed in such 
     publication if the Secretary determines that--
       ``(i) such action would assist the United States in 
     negotiations to eliminate discrimination against United 
     States banking organizations;
       ``(ii) negotiations undertaken pursuant to subsection (g) 
     are not likely to result in an agreement that eliminates the 
     denial of national treatment; or
       ``(iii) the country has not adequately adhered to an 
     agreement reached as a result of negotiations undertaken 
     pursuant to subsection (g).
       ``(B) Exercise of authority.--The authority of subparagraph 
     (A) shall be exercised according to the specific direction 
     (if any) of the President.
       ``(C) Compliance exceptions.--The appropriate Federal 
     banking agency shall comply with the recommendation of the 
     Secretary made under subparagraph (A), unless the agency 
     determines, in writing, and transmits such determination to 
     the Secretary and to the Congress, that such recommendation--
       ``(i) would likely result in a serious impairment to the 
     safe and sound operation of the United States banking system; 
     or
       ``(ii) would compromise the ability of a Federal banking 
     agency to resolve a failing or failed financial institution 
     because a foreign banking institution otherwise barred by an 
     action under subparagraph (A) represents the only bona fide 
     reasonable offer available to the Federal banking agency.
       ``(2) No affect on certain agreements.--The exercise of 
     authority under this subsection does not affect any 
     obligation of the United States to pursue dispute resolution 
     procedures pursuant to any international agreement governing 
     financial services, approved by the House of Representatives 
     and the Senate, with respect to a dispute arising out of any 
     obligation under that agreement.
       ``(f) Exemptions From Sanctions.--
       ``(1) In general.--Subsection (e) does not apply to the 
     subsidiaries in the United States of a person of a foreign 
     country if the Secretary determines that the banking laws and 
     regulations of the foreign country, as actually applied, meet 
     or exceed--
       ``(A) the standards for treatment of subsidiaries of United 
     States banking organizations contained in the Second Banking 
     Directive, and in any amendment to the Second Banking 
     Directive, if the Secretary determines that such amendment--
       ``(i) does not restrict any operation, activity, or 
     authority to expand any operation or activity, permitted 
     under those standards, of any subsidiary in the foreign 
     country of any such bank or bank holding company; or
       ``(ii) is in accordance with national treatment of 
     subsidiaries of such banking organizations; or
       ``(B) any set of standards that, taken as a whole, is no 
     less favorable to United States banking organizations than 
     the standards referred to in subparagraph (A).
       ``(2) Standards for exercise of discretion.--In exercising 
     any discretion under this subsection, the Secretary shall 
     consider, with respect to a bank, foreign bank, branch, 
     agency, commercial lending company, or other affiliated 
     entity that is a person of a foreign country and that is 
     operating in the United States--
       ``(A) the extent to which the foreign country is 
     progressing toward according national treatment to United 
     States banking organizations; and
       ``(B) whether the foreign country permits United States 
     banking organizations to expand their activities in that 
     country, even if that country determined that the United 
     States did not accord national treatment to the banking 
     organizations of that country.
       ``(g) Negotiations.--
       ``(1) In general.--The Secretary--
       ``(A) shall initiate negotiations with any foreign country 
     with respect to which a determination made under subsection 
     (c)(1) is in effect; and
       ``(B) may initiate negotiations with any foreign country 
     which denies national treatment to United States banking 
     organizations to ensure that the foreign country accords 
     national treatment to such organizations.
       ``(2) Exceptions.--Paragraph (1) does not require the 
     Secretary to initiate negotiations with a foreign country if 
     the Secretary--
       ``(A) determines that the negotiations--
       ``(i) would be so unlikely to result in progress toward 
     according national treatment to United States banking 
     organizations as to be a waste of effort; or
       ``(ii) would impair the economic interests of the United 
     States; and
       ``(B) gives written notice of that determination to the 
     chairperson and the ranking minority member of the Committee 
     on Banking, Housing, and Urban Affairs of the Senate and of 
     the Committee on Banking, Finance and Urban Affairs of the 
     House of Representatives.
       ``(h) Report.--
       ``(1) Contents of report.--Not later than December 1, 1994, 
     and biennially thereafter, the Secretary shall submit to the 
     Congress a report that--
       ``(A) specifies the foreign countries identified under 
     subsection (b);
       ``(B) if a determination is published under subsection 
     (d)(1) with respect to the foreign country, provides the 
     reasons therefor;
       ``(C) if the Secretary has not made or has rescinded such a 
     determination with respect to the foreign country, provides 
     the reasons therefor;
       ``(D) describes the results of any negotiations conducted 
     under subsection (g)(1) with the foreign country; and
       ``(E) discusses the effectiveness of this section in 
     achieving the purpose of this section.
       ``(2) Submission of report.--The report required by 
     paragraph (1) may be submitted as part of a report or update 
     submitted under section 3602 of the Omnibus Trade and 
     Competitiveness Act of 1988.
       ``(i) Consultation.--Consultation in accordance with this 
     subsection means consultation with the Secretary of State, 
     the Secretary of Commerce, the United States Trade 
     Representative, and the appropriate Federal banking agency.
       ``(j) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Appropriate federal banking agency.--The term 
     `appropriate Federal banking agency'--
       ``(A) in the case of a noninsured State bank or branch and 
     a representative office of a foreign bank, means the Board of 
     Governors of the Federal Reserve System; and
       ``(B) in any other case, has the same meaning as in section 
     3 of the Federal Deposit Insurance Act.
       ``(2) Banking organization.--The term `banking 
     organization' means--
       ``(A) a depository institution, as defined in section 3 of 
     the Federal Deposit Insurance Act, including a branch or 
     subsidiary thereof;
       ``(B) a bank holding company, as defined in section 2 of 
     the Bank Holding Company Act of 1956;
       ``(C) any company required to file information pursuant to 
     section 4(f)(6) of the Bank Holding Company Act of 1956;
       ``(D) a savings and loan holding company, as defined in 
     section 10(a)(1)(D) of the Home Owners' Loan Act; and
       ``(E) any nonbank financial entity, the primary purpose of 
     which is to provide credit or financing, regardless of 
     whether such entity accepts deposits.
       ``(3) National treatment.--A foreign country accords 
     `national treatment' to United States banking organizations 
     if it offers them the same competitive opportunities 
     (including effective market access) as are available to its 
     domestic banking organizations in like circumstances.
       ``(4) Person of a foreign country.--The term `person of a 
     foreign country' means--
       ``(A) a person organized under the laws of the foreign 
     country;
       ``(B) a person that has its principal place of business in 
     the foreign country;
       ``(C) an individual who is--
       ``(i) a citizen of the foreign country, or
       ``(ii) domiciled in the foreign country; and
       ``(D) a person that is directly or indirectly controlled by 
     a person or persons described in subparagraph (A) or (B), or 
     by an individual or individuals described in subparagraph 
     (C).
       ``(5) Request for authorization.--The term `request for 
     authorization'--
       ``(A) means an application, registration, notice, or other 
     request to commence a financial service or establish a 
     financial services office that is required under title LXII 
     of the Revised Statutes, the International Banking Act of 
     1978, the Federal Reserve Act, the Home Owners' Loan Act, or 
     the Bank Holding Company Act of 1956; and
       ``(B) does not include any such request by a company 
     described in section 2(h)(2) of the Bank Holding Company Act 
     of 1956.
       ``(6) Second banking directive.--The term `Second Banking 
     Directive' means the Second Council Directive of December 15, 
     1989, on the Coordination of Laws, Regulations, and 
     Administrative Provisions Relating to the Taking Up and 
     Pursuit of the Business of Credit Institutions and Amending 
     Directive 77/780/EEC (89/646/EEC).
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.''.

     SEC. 403. EFFECTUATING THE PRINCIPLE OF NATIONAL TREATMENT 
                   FOR SECURITIES ORGANIZATIONS.

       (a) Purpose.--The purpose of this section is to encourage 
     foreign countries to accord national treatment to United 
     States securities organizations that operate or seek to 
     operate in those countries.
       (b) Identifying Countries That Deny National Treatment to 
     United States Securities Organizations.--The Secretary shall 
     identify whether and to what extent foreign countries deny 
     national treatment to United States securities 
     organizations--
       (1) according to the most recent report under section 3602 
     of the Omnibus Trade and Competitiveness Act of 1988 (or 
     update thereof); or
       (2) based upon more recent information that the Secretary 
     deems appropriate.
       (c) Determining Whether Denial of National Treatment Has 
     Significant Adverse Effect.--The Secretary shall determine 
     whether the denial of national treatment to United States 
     securities organizations by a foreign country identified 
     under subsection (b) has a significant adverse effect on such 
     organizations.
       (d) Publication of Determination.--
       (1) In general.--If the Secretary determines under 
     subsection (c) that the denial of national treatment to 
     United States securities organizations by a foreign country 
     has a significant adverse effect on such organizations, the 
     Secretary--
       (A) may, after initiating negotiations in accordance with 
     subsection (f), and after consultation in accordance with 
     subsection (h), publish that determination in the Federal 
     Register; and
       (B) shall, not less frequently than annually, in 
     consultation with any department or agency that the Secretary 
     deems appropriate, review each such determination to 
     determine whether it should be rescinded.
       (2) Exception for countries that are parties to certain 
     agreements governing financial services.--Paragraph (1) shall 
     not apply to a foreign country to the extent that a 
     determination under that paragraph with respect to the 
     foreign country would permit action to be taken under this 
     section that would be inconsistent with a bilateral or 
     multilateral agreement that governs financial services that 
     the President entered into with that country and the Senate 
     and the House of Representatives approved before the date of 
     enactment of this section.
       (e) Sanctions.--
       (1) Action by secretary of treasury.--
       (A) In general.--The Secretary may, after consultation in 
     accordance with subsection (h), recommend to the Commission 
     that the Commission deny or suspend consideration of a 
     request for authorization filed after the date of publication 
     of a determination under subsection (d)(1) by a person of a 
     foreign country listed in such publication if the Secretary 
     determines that--
       (i) such action would assist the United States in 
     negotiations to eliminate discrimination against United 
     States securities organizations;
       (ii) negotiations undertaken pursuant to subsection (f) are 
     not likely to result in an agreement that eliminates the 
     denial of national treatment; or
       (iii) the country has not adequately adhered to an 
     agreement reached as a result of negotiations undertaken 
     pursuant to subsection (f).
       (B) Exercise of authority.--The authority of subparagraph 
     (A) shall be exercised according to the specific direction 
     (if any) of the President.
       (C) Commission action.--The Commission shall deny or 
     suspend consideration of a request for authorization in 
     accordance with the recommendation of the Secretary made 
     under subparagraph (A), unless such recommendation would 
     likely result in a serious adverse impact on--
       (i) the maintenance of fair and orderly securities markets; 
     or
       (ii) the protection of investors.
       (D) Authority upon denial of authorization.--
       (i) In general.--In connection with the denial of a request 
     for authorization under subparagraph (A), the Commission may 
     order--

       (I) disposition of any controlling interest referred to in 
     subsection (i)(9)(B)(i);
       (II) closure of any office referred to in subsection 
     (i)(9)(B)(ii); or
       (III) termination of any advisory relationship referred to 
     in subparagraphs (C) and (D) of subsection (i)(9).

       (ii) Penalty for noncompliance.--The Commission may revoke 
     the underlying registration under Federal securities laws of 
     any person who fails to comply with an order issued under 
     clause (i).
       (2) Notice required to file requests for authorization.--
       (A) In general.--If a determination is published under 
     subsection (d)(1) with respect to a foreign country, no 
     person of that foreign country may file a request for 
     authorization unless such person files notice of such request 
     simultaneously with the Commission and the Secretary, not 
     less than 90 days in advance of the action that is the 
     subject of the request, in such form and containing such 
     information as the Commission may prescribe by rule.
       (B) Notifying secretary.--The Commission shall promptly 
     notify the Secretary of any notice received under 
     subparagraph (A).
       (C) Extending 90-day period.--The Commission may, by order, 
     extend for an additional 180 days the period during which the 
     Commission may consider a notice received under subparagraph 
     (A).
       (3) Standards for exercise of discretion.--In exercising 
     any discretion under this subsection, the Secretary shall 
     consider, with respect to a securities organization that is 
     controlled, directly or indirectly, by a person of a foreign 
     country--
       (A) the extent to which the foreign country is progressing 
     toward according national treatment to United States 
     securities organizations; and
       (B) whether the foreign country permits United States 
     securities organizations to expand their activities in that 
     country, even if that country determined that the United 
     States did not accord national treatment to securities 
     organizations of that country.
       (f) Negotiations.--
       (1) In general.--The Secretary--
       (A) shall initiate negotiations with any foreign country 
     with respect to which a determination under subsection (c)(1) 
     is in effect; and
       (B) may initiate negotiations with any foreign country 
     which denies national treatment to United States securities 
     organizations to ensure that the foreign country accords 
     national treatment to such organizations.
       (2) Exceptions.--Paragraph (1) does not require the 
     Secretary to initiate negotiations with a foreign country if 
     the Secretary--
       (A) determines that the negotiations--
       (i) would be so unlikely to result in progress toward 
     according national treatment to United States securities 
     organizations as to be a waste of effort; or
       (ii) would impair the economic interests of the United 
     States; and
       (B) gives written notice of that determination to the 
     chairperson and the ranking minority member of the Committee 
     on Banking, Housing, and Urban Affairs of the Senate and of 
     the Committee of Energy and Commerce of the House of 
     Representatives.
       (g) Report.--
       (1) Contents of report.--Not later than December 1, 1994, 
     and biennially thereafter, the Secretary shall submit to the 
     Congress a report that--
       (A) specifies the foreign countries identified under 
     subsection (b);
       (B) if a determination is published under subsection (d)(1) 
     with respect to the foreign country, provides the reasons 
     therefor;
       (C) if the Secretary has not made, or has rescinded, a 
     determination under subsection (d)(1) with respect to the 
     foreign country, provides the reasons therefor;
       (D) describes the results of any negotiations conducted 
     under subsection (f)(1) with the foreign country; and
       (E) discusses the effectiveness of this section in 
     achieving the purpose of this section.
       (2) Submission of report.--The report required by paragraph 
     (1) may be submitted as part of a report or update submitted 
     under section 3602 of the Omnibus Trade and Competitiveness 
     Act of 1988.
       (h) Consultation.--Consultation in accordance with this 
     subsection means consultation with the Secretary of State, 
     the Secretary of Commerce, the United States Trade 
     Representative, and the Commission.
       (i) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Broker.--The term ``broker'' has the same meaning as in 
     section 3(a)(4) of the Securities Exchange Act of 1934.
       (2) Commission.--The term ``Commission'' means the 
     Securities and Exchange Commission.
       (3) Control.--The terms ``directly or indirectly controlled 
     by'' and ``controlled, directly or indirectly'' shall have 
     the meanings given to such terms in rules or regulations 
     issued by the Secretary of the Treasury, not later than 6 
     months after the date of enactment of this Act, after 
     consultation with the Commission.
       (4) Dealer.--The term ``dealer'' has the same meaning as in 
     section 3(a)(5) of the Securities Exchange Act of 1934.
       (5) Investment adviser.--The term ``investment adviser'' 
     has the same meaning as in section 202(a)(11) of the 
     Investment Advisers Act of 1940.
       (6) Investment company.--The term ``investment company'' 
     has the same meaning as in section 3 of the Investment 
     Company Act of 1940.
       (7) National treatment.--A foreign country accords 
     ``national treatment'' to United States securities 
     organizations if it offers them the same competitive 
     opportunities (including effective market access) as are 
     available to its domestic securities organizations in like 
     circumstances.
       (8) Person of a foreign country.--The term ``person of a 
     foreign country'' means--
       (A) a person organized under the laws of the foreign 
     country;
       (B) a person that has its principal place of business in 
     the foreign country;
       (C) an individual who is--
       (i) a citizen of the foreign country; or
       (ii) domiciled in the foreign country;
       (D) a person that is directly or indirectly controlled by 
     one or more persons described in subparagraph (A), (B), or 
     (C); and
       (E) an investment company, an investment adviser of which 
     is a person described in any of subparagraphs (A) through 
     (D).
       (9) Request for authorization.--The term ``request for 
     authorization'' means--
       (A) an application to register under section 15(b), 15B, or 
     15C of the Securities Exchange Act of 1934, or section 203(c) 
     of the Investment Advisers Act of 1940, including an 
     application to succeed to the business of a registered 
     entity;
       (B) an amendment to a registration statement referred to in 
     subparagraph (A) that reflects--
       (i) the acquisition of control of the registered entity; or
       (ii) the addition of a United States office by the 
     registered entity;
       (C) a registration statement filed by an investment company 
     under section 8(b) of the Investment Company Act of 1940, if 
     a person of a foreign country will serve as an investment 
     adviser to the investment company; and
       (D) an amendment to an investment company registration 
     statement filed under section 8(b) of the Investment Company 
     Act of 1940 that reflects the retention of a person of a 
     foreign country as an investment adviser.
       (10) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (11) Securities organization.--The term ``securities 
     organization'' means a broker, a dealer, an investment 
     company, or an investment adviser.

     SEC. 404. FINANCIAL INTERDEPENDENCE STUDY.

       Subtitle G of title III of the Omnibus Trade and 
     Competitiveness Act of 1988 (22 U.S.C. 5351 et seq.) is 
     amended by adding at the end the following new section:

     ``SEC. 3605. FINANCIAL INTERDEPENDENCE STUDY.

       ``(a) Investigation Required.--The Secretary, in 
     consultation and coordination with the Securities and 
     Exchange Commission, the Federal banking agencies, and any 
     other appropriate Federal department or agency designated by 
     the Secretary, shall conduct an investigation to determine--
       ``(1) the extent of the interdependence of the financial 
     services sectors of the United States and foreign countries--
       ``(A) whose financial services institutions provide 
     financial services in the United States; or
       ``(B) whose persons have substantial ownership interests in 
     United States financial services institutions; and
       ``(2) the economic, strategic, and other consequences of 
     that interdependence for the United States.
       ``(b) Report.--
       ``(1) Report required.--Not later than 3 years after the 
     date of enactment of this section, the Secretary shall submit 
     a report on the results of the investigation under subsection 
     (a) to the President, the Congress, the Securities and 
     Exchange Commission, the Federal banking agencies, and any 
     other appropriate Federal agency or department, as designated 
     by the Secretary.
       ``(2) Contents of report.--The report required under 
     paragraph (1) shall--
       ``(A) describe the activities and estimate the scope of 
     financial services activities conducted by United States 
     financial services institutions in foreign markets 
     (differentiated according to major foreign markets);
       ``(B) describe the activities and estimate the scope of 
     financial services activities conducted by foreign financial 
     services institutions in the United States (differentiated 
     according to the most significant home countries or groups of 
     home countries);
       ``(C) estimate the number of jobs created in the United 
     States by financial services activities conducted by foreign 
     financial services institutions and the number of jobs 
     created in foreign countries by financial service activities 
     conducted by United States financial services institutions;
       ``(D) estimate the additional jobs and revenues (both 
     foreign and domestic) that would be created by the activities 
     of United States financial services institutions in foreign 
     countries if those countries offered such institutions the 
     same competitive opportunities (including effective market 
     access) as are available to the domestic financial services 
     institutions of those countries;
       ``(E) describe the extent to which foreign financial 
     services institutions discriminate against United States 
     persons in procurement, employment, the provision of credit 
     or other financial services, or otherwise;
       ``(F) describe the extent to which foreign financial 
     services institutions and other persons from foreign 
     countries purchase or otherwise facilitate the marketing from 
     the United States of government and private debt instruments 
     and private equity instruments;
       ``(G) describe how the interdependence of the financial 
     services sectors of the United States and foreign countries 
     affects the autonomy and effectiveness of United States 
     monetary policy;
       ``(H) describe the extent to which United States companies 
     rely on financing by or through foreign financial services 
     institutions and the consequences of such reliance (including 
     disclosure of proprietary information) for the industrial 
     competitiveness and national security of the United States;
       ``(I) describe the extent to which foreign financial 
     services institutions, in purchasing high technology products 
     such as computers and telecommunications equipment, favor 
     manufacturers from their home countries over United States 
     manufacturers; and
       ``(J) contain other appropriate information relating to the 
     results of the investigation required by subsection (a).
       ``(c) Definitions.--For purposes of this section the 
     following definitions shall apply:
       ``(1) Depository institution and depository institution 
     holding company.--The terms `depository institution' and 
     `depository institution holding company' have the same 
     meanings as in section 3 of the Federal Deposit Insurance 
     Act.
       ``(2) Federal banking agencies.--The term `Federal banking 
     agencies' has the same meaning as in section 3 of the Federal 
     Deposit Insurance Act.
       ``(3) Financial services institution.--The term `financial 
     services institution' means--
       ``(A) a broker, dealer, underwriter, clearing agency, 
     transfer agent, or information processor with respect to 
     securities, including government and municipal securities;
       ``(B) an investment company, investment manager, investment 
     adviser, indenture trustee, or any depository institution, 
     insurance company, or other organization operating as a 
     fiduciary, trustee, underwriter, or other financial services 
     provider;
       ``(C) any depository institution or depository institution 
     holding company; and
       ``(D) any other entity providing financial services.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.''.

     SEC. 405. CONFORMING AMENDMENTS.

       (a) Reports on Foreign Treatment of United States Financial 
     Institutions.--Section 3602 of the Omnibus Trade and 
     Competitiveness Act of 1988 (22 U.S.C. 5352) is amended--
       (1) in the first sentence, by inserting ``with updates on 
     significant developments every 2 years following submission 
     of the 1994 report,'' before ``the Secretary of the 
     Treasury''; and
       (2) by adding at the end the following: ``For purposes of 
     this section, a foreign country denies national treatment to 
     United States entities unless the foreign country offers such 
     entities the same competitive opportunities (including 
     effective market access) as are available to the domestic 
     entities of the foreign country.''.
       (b) Negotiations To Promote Fair Trade in Financial 
     Services.--Section 3603(a)(1) of the Omnibus Trade and 
     Competitiveness Act of 1988 (22 U.S.C. 5353(a)(1)) is amended 
     by inserting ``effective'' before ``access''.
       (c) Primary Dealers in Government Debt Instruments.--
     Section 3502(b)(1) of the Omnibus Trade and Competitiveness 
     Act of 1988 (22 U.S.C. 5342(b)(1)) is amended--
       (1) by striking ``does not accord to'' and inserting ``does 
     not offer''; and
       (2) by striking ``as such country accords to'' and 
     inserting ``(including effective market access) as are 
     available to''.
       (d) Conforming Amendments to the Securities Exchange Act of 
     1934.--
       (1) Section 15.--Section 15(b)(1) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o(b)(1)) is amended by 
     adding at the end the following: ``The Commission may suspend 
     consideration, deny registration, issue an order, or revoke 
     registration, as provided in section 403(e)(1) of the Fair 
     Trade in Financial Services Act of 1994.''.
       (2) Section 15b.--Section 15B(a)(2) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o-4(a)(2)) is amended by 
     adding at the end the following: ``The Commission may suspend 
     consideration, deny registration, issue an order, or revoke 
     registration, as provided in section 403(e)(1) of the Fair 
     Trade in Financial Services Act of 1994.''.
       (3) Section 15c.--Section 15C(a)(2) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o-5(a)(2)) is amended by 
     adding at the end the following: ``The Commission may suspend 
     consideration, deny registration, issue an order, or revoke 
     registration, as provided in section 403(e)(1) of the Fair 
     Trade in Financial Services Act of 1994.''.
       (e) Conforming Amendment to the Investment Company Act of 
     1940.--Section 8 of the Investment Company Act of 1940 (15 
     U.S.C. 80a-8) is amended by adding at the end the following 
     new subsection:
       ``(g) The Commission may suspend consideration, deny 
     registration, issue an order, or revoke registration, as 
     provided in section 403(e)(1) of the Fair Trade in Financial 
     Services Act of 1994.''.
       (f) Conforming Amendment to the Investment Advisers Act of 
     1940.--Section 203(c)(2) of the Investment Advisers Act of 
     1940 (15 U.S.C. (c)(2)) is amended by adding at the end the 
     following: ``The Commission may suspend consideration, deny 
     registration, issue an order, or revoke registration, as 
     provided in section 403(e)(1) of the Fair Trade in Financial 
     Services Act of 1994.''.

       Amend the table of contents accordingly.
                                  ____


                           Amendment No. 1526

       At the appropriate place in title III of the bill, insert 
     the following:

     SEC.  . INCLUSION OF COMPTROLLER OF THE CURRENCY; 
                   CLARIFICATION OF REVISED STATUTES.

       (a) Public Law 93-425.--Section 111 of Public Law 93-495 
     (12 U.S.C. 250) is amended by inserting ``the Comptroller of 
     the Currency,'' after ``Federal Deposit Insurance 
     Corporation,''.
       (b) Revised Statutes.--
       (1) Section 5240.--The third paragraph of section 5240 of 
     the Revised Statutes (12 U.S.C. 482) is amended by inserting 
     ``or section 301(f)(1) of title 31, United States Code,'' 
     after ``provisions of this section''.
       (2) Section 324.--Section 324 of the Revised Statutes (12 
     U.S.C. 1) is amended by adding at the end the following: 
     ``The Comptroller of the Currency shall have the same 
     authority over matters within the jurisdiction of the 
     Comptroller as the Director of the Office of Thrift 
     Supervision has over matters within the Director's 
     jurisdiction under section 3(b)(3) of the Home Owners' Loan 
     Act.''.
       (3) Section 5239.--Section 5239 of the Revised Statutes (12 
     U.S.C. 93) is amended by inserting at the end the following 
     new subsection:
       ``(d) Authority.--The Comptroller of the Currency may act 
     in the Comptroller's own name and through the Comptroller's 
     own attorneys in enforcing any provision of this title, 
     regulations thereunder, or any other law or regulation, or in 
     any action, suit, or proceeding to which the Comptroller of 
     the Currency is a party.''.
                                 ______


                DODD (AND DeCONCINI) AMENDMENT NO. 1527

  Mr. DODD (for himself and Mr. DeConcini) proposed an amendment to the 
bill S. 1275, supra; as follows:

       On page 160, between lines 6 and 7, insert the following:

     SEC. 334. COMMEMORATION OF 1995 SPECIAL OLYMPIC WORLD GAMES.

       (a) Coin Specifications.--
       (1) One dollar silver coins.--
       (A) Issuance.--The Secretary of the Treasury (hereafter in 
     this section referred to as the ``Secretary'') shall issue 
     not more than 800,000 $1 coins, which shall weigh 26.73 
     grams, have a diameter of 1.500 inches, and shall contain 90 
     percent silver and 10 percent copper.
       (B) Design.--The design of the coins issued under this 
     section shall be emblematic of the 1995 Special Olympics 
     World Games. On each such coin there shall be a designation 
     of the value of the coin, an inscription of the year 
     ``1995'', and inscriptions of the words ``Liberty'', ``In God 
     We Trust'', ``United States of America'', and ``E Pluribus 
     Unum''.
       (2) Legal tender.--The coins issued under this section 
     shall be legal tender as provided in section 5103 of title 
     31, United States Code.
       (3) Numismatic items.--For purposes of section 5132(a)(1) 
     of title 31, United States Code, all coins minted under this 
     section shall be considered to be numismatic items.
       (b) Sources of Bullion.--The Secretary shall obtain silver 
     for the coins minted under this section only from stockpiles 
     established under the Strategic and Critical Materials Stock 
     Piling Act.
       (c) Selection of Design.--The design for the coins 
     authorized by this section shall be selected by the Secretary 
     after consultation with the 1995 Special Olympics World Games 
     Organizing Committee, Inc. and the Commission of Fine Arts. 
     As required by section 5135 of title 31, United States Code, 
     the design shall also be reviewed by the Citizens 
     Commemorative Coin Advisory Committee.
       (d) Issuance of the Coins.--
       (1) Quality of coins.--The coins authorized under this 
     section may be issued in uncirculated and proof qualities.
       (2) Mint facility.--Not more than 1 facility of the United 
     States Mint may be used to strike any particular quality of 
     the coins minted under this section.
       (3) Commencement of issuance.--The coins authorized under 
     this section shall be available for issue not later than 
     January 15, 1995.
       (4) Sunset provision.--No coins shall be minted under this 
     section after December 31, 1995.
       (e) Sale of the Coins.--
       (1) Sale price.--The coins issued under this section shall 
     be sold by the Secretary at a price equal to the sum of the 
     face value of the coins, the surcharge provided in paragraph 
     (4) with respect to such coins, and the cost of designing and 
     issuing such coins (including labor, materials, dies, use of 
     machinery, overhead expenses, marketing, and shipping).
       (2) Bulk sales.--The Secretary shall make bulk sales at a 
     reasonable discount.
       (3) Prepaid orders.--The Secretary shall accept prepaid 
     orders for the coins authorized under this section prior to 
     the issuance of such coins. Sales under this subsection shall 
     be at a reasonable discount.
       (4) Surcharge required.--All sales shall include a 
     surcharge of $10 per coin.
       (f) General Waiver of Procurement Regulations.--No 
     provision of law governing procurement or public contracts 
     shall be applicable to the procurement of goods or services 
     necessary for carrying out the provisions of this section. 
     Nothing in this subsection shall relieve any person entering 
     into a contract under the authority of this section from 
     complying with any law relating to equal employment 
     opportunity.
       (g) Distribution of Surcharges.--The total surcharges 
     collected by the Secretary from the sale of the coins issued 
     under this section shall be promptly paid by the Secretary to 
     the 1995 Special Olympics World Games Organizing Committee, 
     Inc. Such amounts shall be used to--
       (1) provide a world class sporting event for athletes with 
     mental retardation;
       (2) demonstrate to a global audience the extraordinary 
     talents, dedication, and courage of persons with mental 
     retardation; and
       (3) underwrite the cost of staging and promoting the 1995 
     Special Olympics World Games.
       (h) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the 1995 Special Olympics World 
     Games Organizing Committee, Inc. as may be related to the 
     expenditure of amounts paid under subsection (g).
       (i) Financial Assurances.--
       (1) No net cost to the government.--The Secretary shall 
     take all actions necessary to ensure that the issuance of the 
     coins authorized by this section shall result in no net cost 
     to the United States Government.
       (2) Adequate security for payment required.--No coin shall 
     be issued under this section unless the Secretary has 
     received--
       (A) full payment therefore;
       (B) security satisfactory to the Secretary to indemnify the 
     United States for full payment; or
       (C) a guarantee of full payment satisfactory to the 
     Secretary from a depository institution whose deposits are 
     insured by the Federal Deposit Insurance Corporation or the 
     National Credit Union Administration Board.

                                 ______


                PACKWOOD (AND OTHERS) AMENDMENT NO. 1528

  Mr. PACKWOOD (for himself, Mr. Gorton, and Mr. Hatfield) proposed an 
amendment to the bill S. 1275, supra; as follows:

       At the appropriate place in the bill, insert the following 
     new section:

     SEC.   . STUDY OF EFFECT OF THE NORTHERN SPOTTED OWL ON SMALL 
                   BUSINESS CONCERNS.

       (a) Definitions.--For purposes of this section--
       (1) the term ``Administrator'' means the Administrator of 
     the Small Business Administration; and
       (2) the term ``small business concerns'' has the same 
     meaning as in section 3 of the Small Business Act.
       (b) Findings.--The Congress finds that--
       (1) a critical and worsening timber supply shortage exists 
     within the social and economic area that generally 
     corresponds to the range of the Northern spotted owl, 
     including Western Oregon, Western Washington, and Northern 
     California, as a consequence of various actions by the 
     Federal Government aimed at stabilizing and recovering the 
     Northern spotted owl as well as other species thought to be 
     associated with old-growth forests; and
       (2) numerous small business concerns rely for their 
     livelihood on the adequate harvest of timber from Federal and 
     non-Federal lands within the range of the Northern spotted 
     owl and related species.
       (c) Business Study.--The Administrator shall conduct a 
     study that analyzes--
       (1) the nature and extent of economic losses to small 
     business concerns in the forest products industry that have 
     occurred subsequent to the designation of the Northern 
     spotted owl as a threatened species pursuant to section 4 of 
     the Endangered Species Act of 1973, or that are reasonably 
     likely to occur in the future as a result of present trends;
       (2) the ability of small business concerns to recoup the 
     fair market value of equipment and other property employed in 
     the harvest and processing of timber prior to the listing of 
     the Northern spotted owl as a threatened species; and
       (3) the ability of small business concerns in the affected 
     area to offer alternative products or services for which 
     there is a ready or likely suitable market.
       (d) Report.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this section, the Administrator shall submit a 
     report of the results of the study conducted under subsection 
     (c) to the President and to the relevant committees of the 
     Senate and the House of Representatives.
       (2) Options.--The report shall include options for Congress 
     and the President for compensating small business concerns 
     for economic losses and for promoting business transition and 
     diversification.
       (3) Consultation.--In preparing the report, the 
     Administrator shall consult with small business concerns in 
     the forest products industry, and shall solicit comments from 
     the public.
                                 ______


                PACKWOOD (AND OTHERS) AMENDMENT NO. 1529

  Mr. PACKWOOD (for himself, Mr. Gorton, and Mr. Hatfield) proposed an 
amendment to the bill S. 1275, supra; as follows:

       At the appropriate place in the bill, insert the following 
     new section:

     SEC.   . STUDY OF EFFECT OF THE NORTHERN SPOTTED OWL ON SMALL 
                   BUSINESS CONCERNS.

       (a) Definitions.--For purposes of this section--
       (1) the term ``Administrator'' means the Administrator of 
     the Small Business Administration; and
       (2) the term ``small business concerns'' has the same 
     meaning as in section 3 of the Small Business Act.
       (c) Business Study.--The Administrator, in consultation 
     with the Secretary of the Interior shall conduct a study that 
     analyzes--
       (1) the nature and extent of economic losses to small 
     business concerns in the forest products industry that have 
     occurred as a result of the designation of the Northern 
     spotted owl as a threatened species pursuant to section 4 of 
     the Endangered Species Act of 1973, or that are reasonably 
     likely to occur in the future.
       (2) the ability of small business concerns to recoup the 
     fair market value of equipment and other property employed in 
     the harvest and processing of timber prior to the listing of 
     the Northern spotted owl as a threatened species; and
       (3) the ability of small business concerns in the affected 
     area to offer alternative products or services for which 
     there is a ready or likely suitable market.
       (d) Report.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this section, the Administrator and the 
     Secretary of the Interior shall submit a report of the 
     results of the study conducted under subsection (c) to the 
     President and to the relevant committees of the Senate and 
     the House of Representatives.
       (2) Options.--The report shall include options for Congress 
     and the President for compensating small business concerns 
     for economic losses and for promoting business transition and 
     diversification.
       (3) Consultation.--In preparing the report, the 
     Administrator and the Secretary of the Interior, shall 
     consult with small business concerns in the forest products 
     industry, and shall solicit comments from the public.
                                 ______


                 BRYAN (AND OTHERS) AMENDMENT NO. 1530

  Mr. RIEGLE (for Mr. Bryan for himself, Mr. Bond, Mr. Riegle, Mr. 
D'Amato, and Mr. Reid) proposed an amendment to the bill S. 1275, 
supra; as follows:

       On page 160, between lines 6 and 7, insert the following 
     new title:
                       TITLE IV--MONEY LAUNDERING

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Money Laundering 
     Suppression Act of 1994''.

     SEC. 402. REFORM OF CTR EXEMPTION REQUIREMENTS TO REDUCE 
                   NUMBER AND SIZE OF REPORTS CONSISTENT WITH 
                   EFFECTIVE LAW ENFORCEMENT.

       (a) In General.--Section 5313 of title 31, United States 
     Code, is amended by adding at the end the following new 
     subsections:
       ``(d) Mandatory Exemptions From Reporting Requirements.--
       ``(1) In general.--The Secretary of the Treasury shall 
     exempt, pursuant to section 5318(a)(5), a depository 
     institution from the reporting requirements of subsection (a) 
     (and regulations prescribed under such subsection) with 
     respect to transactions between the depository institution 
     and the following categories of entities:
       ``(A) Another depository institution.
       ``(B) A department or agency of the United States, any 
     State, or any political subdivision of any State, including 
     any entity established under the laws of the United States, 
     any State, or any political subdivision of any State, or 
     under an interstate compact between 2 or more States, which 
     exercises governmental authority on behalf of the United 
     States, the State, or the political subdivision.
       ``(C) Any business or category of business the reports on 
     which have little or no value for law enforcement purposes.
       ``(2) Notice of exemption.--The Secretary of the Treasury 
     shall publish in the Federal Register at such times as the 
     Secretary determines to be appropriate (but not less 
     frequently than once during each year) a list of all the 
     entities whose transactions with a depository institution are 
     exempt under this subsection from the reporting requirements 
     of subsection (a) (and regulations prescribed under such 
     subsection).
       ``(e) Discretionary Exemptions From Reporting 
     Requirements.--
       ``(1) In general.--The Secretary of the Treasury may 
     exempt, pursuant to section 5318(a)(5), a depository 
     institution from the reporting requirements of subsection (a) 
     (and regulations prescribed under such subsection) with 
     respect to transactions between the depository institution 
     and a qualified business customer of the institution on the 
     basis of information submitted to the Secretary by the 
     institution in accordance with procedures which the Secretary 
     shall establish.
       ``(2) Qualified business customer defined.--For purposes of 
     this subsection, the term `qualified business customer' means 
     a business which--
       ``(A) maintains a transaction account (as defined in 
     section 19(b)(1)(C) of the Federal Reserve Act) at the 
     depository institution;
       ``(B) frequently engages in transactions with the 
     depository institution which are subject to the reporting 
     requirements of subsection (a) (and regulations prescribed 
     under such subsection); and
       ``(C) meets criteria which the Secretary determines are 
     sufficient to ensure that the purposes of this subchapter are 
     carried out without requiring a report with respect to such 
     transactions.
       ``(3) Criteria for exemption.--The Secretary of the 
     Treasury shall establish, by regulation, the criteria for 
     granting and maintaining an exemption under paragraph (1).
       ``(4) Guidelines.--
       ``(A) In general.--The Secretary of the Treasury shall 
     establish guidelines for depository institutions to follow in 
     selecting customers for an exemption under this subsection.
       ``(B) Contents.--The guidelines may include a description 
     of the types of businesses or an itemization of specific 
     businesses for which no exemption will be granted under this 
     subsection to any depository institution.
       ``(5) Annual review.--The Secretary of the Treasury shall 
     prescribe regulations requiring each depository institution 
     to--
       ``(A) review, at least once during each year, the qualified 
     business customers of such institution with respect to whom 
     an exemption has been granted under this subsection; and
       ``(B) upon the completion of such review, resubmit 
     information about such customers, with such modifications as 
     the institution determines to be appropriate, to the 
     Secretary for the Secretary's approval.
       ``(6) 2-year phase-in provision.--During the 2-year period 
     beginning on the date of enactment of the Money Laundering 
     Suppression Act of 1994, this subsection shall be applied by 
     the Secretary on the basis of such criteria as the Secretary 
     determines to be appropriate to achieve an orderly 
     implementation of the requirements of this subsection.
       ``(f) Provisions Applicable to Mandatory and Discretionary 
     Exemptions.--
       ``(1) Limitation on liability of depository institutions.--
     No depository institution shall be subject to any penalty 
     which may be imposed under this subchapter for the failure of 
     the institution to file a report with respect to a 
     transaction with a customer for whom an exemption has been 
     granted under subsection (d) or (e), unless the institution--
       ``(A) knowingly files false or incomplete information to 
     the Secretary with respect to the transaction or the customer 
     engaging in the transaction; or
       ``(B) has reason to believe at the time the exemption is 
     granted or the transaction is entered into that the customer 
     or the transaction does not meet the criteria established for 
     granting such exemption.
       ``(2) Coordination with other provisions.--Any exemption 
     granted by the Secretary of the Treasury under section 
     5318(a) in accordance with this section, and any transaction 
     which is subject to such exemption, shall be subject to any 
     other provision of law applicable to such exemption, 
     including--
       ``(A) the authority of the Secretary, under section 
     5318(a)(5), to revoke such exemption at any time; and
       ``(B) any requirement to report, or any authority to 
     require a report on, any possible violation of any law or 
     regulation or any suspected criminal activity.
       ``(g) Depository Institution Defined.--For purposes of this 
     section, the term `depository institution' has the meaning 
     given to such term in section 19(b)(1)(A) of the Federal 
     Reserve Act.''.
       (b) Report Reduction Goal; Reports.--
       (1) In general.--In implementing the amendment made by 
     subsection (a), the Secretary of the Treasury shall seek to 
     reduce, within a reasonable period of time, the number of 
     reports required to be filed in the aggregate by depository 
     institutions pursuant to section 5313(a) of title 31, United 
     States Code, by not less than 30 percent of the number filed 
     during the year preceding the date of enactment of this Act.
       (2) Interim report.--The Secretary of the Treasury shall 
     submit a report to the Congress not later than the end of the 
     180-day period beginning on the date of enactment of this Act 
     on the progress made by the Secretary in implementing the 
     amendment made by subsection (a).
       (3) Annual report.--The Secretary of the Treasury shall 
     submit an annual report to the Congress after the end of each 
     of the first 5 calendar years which begin after the date of 
     enactment of this Act on the extent to which the Secretary 
     has reduced the overall number of currency transaction 
     reports required to be filed with the Secretary pursuant to 
     section 5313(a) of title 31, United States Code, consistently 
     with the purposes of such section and effective law 
     enforcement.
       (c) Streamlined Currency Transaction Reports.--The 
     Secretary of the Treasury shall take such action as may be 
     appropriate to redesign the format of reports required to be 
     filed by any financial institution (as defined in section 
     5312(a)(2) of title 31, United States Code) under section 
     5313(a) of title 31, United States Code, to eliminate the 
     need to report information which has little or no value for 
     law enforcement purposes and reduce the time and effort 
     required to prepare such report for filing by any such 
     financial institution under such section.

     SEC. 403. SINGLE DESIGNEE FOR REPORTING OF SUSPICIOUS 
                   TRANSACTIONS.

       (a) In General.--Section 5318(g) of title 31, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(4) Single designee for reporting suspicious 
     transactions.--
       ``(A) In general.--In requiring reports under paragraph (1) 
     of suspicious transactions, the Secretary of the Treasury 
     shall designate, to the extent practicable and appropriate, a 
     single officer or agency of the United States to whom such 
     reports shall be made.
       ``(B) Duty of designee.--The officer or agency of the 
     United States designated by the Secretary of the Treasury 
     pursuant to subparagraph (A) shall refer any report of a 
     suspicious transaction to the appropriate law enforcement or 
     supervisory agency.
       ``(C) Coordination with other reporting requirements.--
     Subparagraph (A) shall not be construed as precluding any 
     supervisory agency for any financial institution from 
     requiring the financial institution to submit any information 
     or report to the agency or another agency pursuant to any 
     provision of law other than this subsection.
       ``(D) Reports.--
       ``(i) Reports required.--The Secretary of the Treasury 
     shall submit an annual report to the Congress at the times 
     required under clause (ii) on the number of suspicious 
     transactions reported to the officer or agency designated 
     under subparagraph (A) during the period covered by the 
     report and the disposition of such reports.
       ``(ii) Time for submitting reports.--The first report 
     required under clause (i) shall be filed before the end of 
     the 1-year period beginning on the date of enactment of the 
     Money Laundering Suppression Act of 1994, and each subsequent 
     report shall be filed, not later than 90 days after the end 
     of each of the 5 calendar years which begin after such date 
     of enactment.''.
       (b) Designation Required To Be Made Expeditiously.--The 
     initial designation of an officer or agency of the United 
     States pursuant to the amendment made by subsection (a) shall 
     be made before the end of the 180-day period beginning on the 
     date of enactment of this Act.

     SEC. 404. IMPROVEMENT OF IDENTIFICATION OF MONEY LAUNDERING 
                   SCHEMES.

       (a) Enhanced Training, Examinations, and Referrals by 
     Banking Agencies.--Before the end of the 6-month period 
     beginning on the date of enactment of this Act, each 
     appropriate Federal banking agency shall, in consultation 
     with the Secretary of the Treasury and other appropriate law 
     enforcement agencies--
       (1) review and enhance training and examination procedures 
     to improve the identification of money laundering schemes 
     involving depository institutions; and
       (2) review and enhance procedures for referring cases to 
     any other appropriate law enforcement agency.
       (b) Improved Reporting of Criminal Schemes by Law 
     Enforcement Agencies.--The Secretary of the Treasury and each 
     appropriate law enforcement agency shall, on a regular basis, 
     provide information regarding money laundering schemes and 
     activities involving depository institutions to each 
     appropriate Federal banking agency to enhance the agency's 
     ability to examine for and identify money laundering.
       (c) Report to Congress.--Not later than 1 year after the 
     date of enactment of this Act, the Federal banking agencies 
     shall jointly submit a report to the Congress on the progress 
     made in carrying out subsection (a) and the usefulness of 
     information received pursuant to subsection (b).
       (d) Definitions.--The terms ``appropriate Federal banking 
     agency'' and ``Federal banking agencies'' have the same 
     meanings as in section 3 of the Federal Deposit Insurance 
     Act.

     SEC. 405. NEGOTIABLE INSTRUMENTS DRAWN ON FOREIGN BANKS 
                   SUBJECT TO RECORDKEEPING AND REPORTING 
                   REQUIREMENTS.

       Section 5312(a)(3) of title 31, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) as the Secretary of the Treasury shall provide by 
     regulation for purposes of section 5316, checks, drafts, 
     notes, money orders, and other similar instruments which are 
     drawn on or by a foreign financial institution and are not in 
     bearer form.''.

     SEC. 406. IMPOSITION OF CIVIL MONEY PENALTIES BY APPROPRIATE 
                   FEDERAL BANKING AGENCIES.

       Section 5321 of title 31, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) Delegation of Assessment Authority to Banking 
     Agencies.--
       ``(1) In general.--The Secretary of the Treasury shall 
     delegate, in accordance with section 5318(a)(1), and subject 
     to such terms and conditions as the Secretary may impose in 
     accordance with paragraph (3), any authority of the Secretary 
     to assess a civil money penalty under this section on 
     depository institutions to the appropriate Federal banking 
     agencies.
       ``(2) Authority of agencies.--Subject to any term or 
     condition imposed by the Secretary of the Treasury under 
     paragraph (3), the provisions of this section shall apply to 
     an appropriate Federal banking agency to which is delegated 
     any authority of the Secretary under this section in the same 
     manner such provisions apply to the Secretary.
       ``(3) Terms and conditions.--
       ``(A) In general.--The Secretary of the Treasury shall 
     prescribe by regulation the terms and conditions which shall 
     apply to any delegation under paragraph (1).
       ``(B) Maximum dollar amount.--The terms and conditions 
     authorized under subparagraph (A) may include, in the 
     Secretary's sole discretion, a limitation on the amount of 
     any civil penalty which may be assessed by an appropriate 
     Federal banking agency pursuant to a delegation under 
     paragraph (1).
       ``(4) Definitions.--For purposes of this subsection, the 
     terms `depository institution' and `Federal banking agencies' 
     have the same meanings as in section 3 of the Federal Deposit 
     Insurance Act.''.

     SEC. 407. UNIFORM STATE LICENSING AND REGULATION OF CHECK 
                   CASHING, CURRENCY EXCHANGE, AND MONEY 
                   TRANSMITTING BUSINESSES.

       (a) Uniform Laws and Enforcement.--For purposes of 
     preventing money laundering and protecting the payment system 
     from fraud and abuse, it is the sense of the Congress that 
     the several States should--
       (1) establish uniform laws for licensing and regulating 
     businesses which--
       (A) provide check cashing, currency exchange, or money 
     transmitting or remittance services, or issue or redeem money 
     orders, travelers' checks, and other similar instruments; and
       (B) are not depository institutions (as defined in section 
     19(b)(1)(A) of the Federal Reserve Act); and
       (2) provide sufficient resources to the appropriate State 
     agency to enforce such laws and regulations prescribed 
     pursuant to such laws.
       (b) Model Statute.--It is the sense of the Congress that 
     the several States should develop, through the auspices of 
     the National Conference of Commissioners on Uniform State 
     Laws, the American Law Institute, or such other forum as the 
     States may determine to be appropriate, a model statute to 
     carry out the goals described in subsection (a) which would 
     include the following:
       (1) Licensing requirements.--A requirement that any 
     business described in subsection (a)(1) be licensed and 
     regulated by an appropriate State agency in order to engage 
     in any such activity within the State.
       (2) Licensing standards.--A requirement that--
       (A) in order for any business described in subsection 
     (a)(1) to be licensed in the State, the appropriate State 
     agency shall review and approve--
       (i) the business record and the capital adequacy of the 
     business seeking the license; and
       (ii) the competence, experience, integrity, and financial 
     ability of any individual who--

       (I) is a director, officer, or supervisory employee of such 
     business; or
       (II) owns or controls such business; and

       (B) any record, on the part of any business seeking the 
     license or any person referred to in subparagraph (A)(ii), 
     of--
       (i) any criminal activity;
       (ii) any fraud or other act of personal dishonesty;
       (iii) any act, omission, or practice which constitutes a 
     breach of a fiduciary duty; or
       (iv) any suspension or removal, by any agency or department 
     of the United States or any State, from participation in the 
     conduct of any federally or State licensed or regulated 
     business;

     may be grounds for the denial of any such license by the 
     appropriate State agency.
       (3) Procedures to ensure compliance with federal cash 
     transaction reporting requirements.--A civil or criminal 
     penalty for operating any business referred to in paragraph 
     (1) without establishing and complying with appropriate 
     procedures to ensure compliance with subchapter II of chapter 
     53 of title 31, United States Code (relating to records and 
     reports on monetary instruments transactions).
       (4) Criminal penalties for operation of business without a 
     license.--A criminal penalty for operating any business 
     referred to in paragraph (1) without a license within the 
     State after the end of an appropriate transition period 
     beginning on the date of enactment of such model statute by 
     the State.
       (c) Study Required.--The Secretary of the Treasury shall 
     conduct a study of--
       (1) the progress made by the several States in developing 
     and enacting a model statute which--
       (A) meets the requirements of subsection (b); and
       (B) furthers the goals of--
       (i) preventing money laundering by businesses which are 
     required to be licensed under any such model statute; and
       (ii) protecting the payment system, including the receipt, 
     payment, collection, and clearing of checks, from fraud and 
     abuse by such businesses; and
       (2) the adequacy of--
       (A) the activity of the several States in enforcing the 
     requirements of such statute; and
       (B) the resources made available to the appropriate State 
     agencies for such enforcement activity.
       (d) Report Required.--Before the end of the 3-year period 
     beginning on the date of enactment of this Act and by the end 
     of each of the first two 1-year periods beginning after the 
     end of such 3-year period, the Secretary of the Treasury 
     shall submit a report to the Congress containing the findings 
     and recommendations of the Secretary in connection with the 
     study under subsection (c), together with such 
     recommendations for legislative and administrative action as 
     the Secretary may determine to be appropriate.
       (e) Recommendations in Cases of Inadequate Regulation and 
     Enforcement by States.--If the Secretary of the Treasury 
     determines that any State has been unable--
       (1) to enact a statute which meets the requirements 
     described in subsection (b);
       (2) to undertake adequate activity to enforce such statute; 
     or
       (3) to make adequate resources available to the appropriate 
     State agency for such enforcement activity;

     the report submitted pursuant to subsection (d) shall contain 
     recommendations designed to facilitate enactment and 
     enforcement of such a statute.
       (f) Federal Funding Study.--
       (1) Study required.--The Secretary of the Treasury shall 
     conduct a study to identify possible available sources of 
     Federal funding to cover costs to the States to implement 
     this section.
       (2) Report.--The Secretary of the Treasury shall submit a 
     report to the Congress on the study conducted pursuant to 
     paragraph (1) before the end of the 18-month period beginning 
     on the date of enactment of this Act.

     SEC. 408. REGISTRATION OF MONEY TRANSMITTING BUSINESSES TO 
                   PROMOTE EFFECTIVE LAW ENFORCEMENT.

       (a) Findings and Purposes.--
       (1) Findings.--The Congress finds the following:
       (A) Money transmitting businesses are subject to the 
     recordkeeping and reporting requirements of subchapter II of 
     chapter 53 of title 31, United States Code.
       (B) Money transmitting businesses are largely unregulated 
     businesses and are frequently used in sophisticated schemes 
     to--
       (i) transfer large amounts of money which are the proceeds 
     of unlawful enterprises; and
       (ii) evade the requirements of subchapter II of chapter 53 
     of title 31, United States Code, the Internal Revenue Code of 
     1986, and other laws of the United States.
       (C) Information on the identity of money transmitting 
     businesses and the names of the persons who own or control, 
     or are officers or employees of, a money transmitting 
     business would have a high degree of usefulness in criminal, 
     tax, or regulatory investigations and proceedings.
       (2) Purpose.--It is the purpose of this section to 
     establish a registration requirement for businesses engaged 
     in providing check cashing, currency exchange, or money 
     transmitting or remittance services, or issuing or redeeming 
     money orders, travelers' checks, and other similar 
     instruments to assist the Secretary of the Treasury, the 
     Attorney General, and other supervisory and law enforcement 
     agencies to effectively enforce the criminal, tax, and 
     regulatory laws and prevent such money transmitting 
     businesses from engaging in illegal activities.
       (b) In General.--Subchapter II of chapter 53 of title 31, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 5329. Registration of money transmitting businesses

       ``(a) Registration With Secretary of the Treasury 
     Required.--
       ``(1) In general.--Any person who owns or controls a money 
     transmitting business which is not a depository institution 
     (as defined in section 19(b)(1)(A) of the Federal Reserve 
     Act) shall register the business (whether or not the business 
     is licensed as a money transmitting business in any State) 
     with the Secretary of the Treasury before the end of the 180-
     day period beginning on the later of--
       ``(A) the date of enactment of this section; or
       ``(B) the date the business is established.
       ``(2) Form and manner of registration.--Subject to the 
     requirements of subsection (b), the Secretary of the Treasury 
     shall prescribe, in regulations, the form and manner for 
     registering a money transmitting business pursuant to 
     paragraph (1).
       ``(3) Businesses remain subject to state law.--This section 
     shall not be construed as superseding any requirement of 
     State law relating to money transmitting businesses operating 
     in such State.
       ``(4) False and incomplete information.--The filing of 
     false or materially incomplete information in connection with 
     the registration of a money transmitting business shall be 
     considered as a failure to comply with the requirements of 
     this subsection.
       ``(b) Contents of Registration.--The registration of a 
     money transmitting business under subsection (a) shall 
     include the following information:
       ``(1) The name and location of the business.
       ``(2) The name and address of each person who--
       ``(A) owns or controls the business;
       ``(B) is a director or officer of the business; or
       ``(C) otherwise participates in the conduct of the affairs 
     of the business.
       ``(3) The name and address of any depository institution at 
     which the business maintains a transaction account (as 
     defined in section 19(b)(1)(C) of the Federal Reserve Act).
       ``(4) An estimate of the volume of business to be reported 
     annually.
       ``(5) Such other information as the Secretary of the 
     Treasury may require.
       ``(c) Agents of Money Transmitting Businesses.--
       ``(1) Maintenance of lists of agents of money transmitting 
     businesses.--Pursuant to regulations which the Secretary of 
     the Treasury shall prescribe, each money transmitting 
     business shall--
       ``(A) maintain a list containing the names and addresses of 
     all persons authorized to act as an agent for such business 
     in connection with activities described in subsection 
     (d)(1)(A) and such other information about such agents as the 
     Secretary may require; and
       ``(B) make the list and other information available on 
     request to any appropriate law enforcement agency.
       ``(2) Treatment of agent as money transmitting business.--
     The Secretary of the Treasury shall prescribe regulations 
     establishing, on the basis of such criteria as the Secretary 
     determines to be appropriate, a threshold point for treating 
     an agent of a money transmitting business as a money 
     transmitting business for purposes of this section.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Money transmitting business.--The term `money 
     transmitting business' means any business other than the 
     United States Postal Service which--
       ``(A) provides check cashing, currency exchange, or money 
     transmitting or remittance services, or issues or redeems 
     money orders, travelers' checks, and other similar 
     instruments;
       ``(B) is required to file reports under section 5313; and
       ``(C) is not a depository institution (as defined in 
     section 19(b)(1)(A) of the Federal Reserve Act).
       ``(2) Money transmitting service.--The term `money 
     transmitting service' includes accepting currency or funds 
     denominated in the currency of any country and transmitting 
     the currency or funds, or the value of the currency or funds, 
     by any means through a financial agency or institution, a 
     Federal reserve bank or other facility of the Board of 
     Governors of the Federal Reserve System, or an electronic 
     funds transfer network.
       ``(e) Civil Penalty for Failure To Comply With Registration 
     Requirements.--
       ``(1) In general.--Any person who fails to comply with the 
     money transmitting business registration requirements under 
     subsection (a) or regulations prescribed under such 
     subsection shall be liable to the United States for a civil 
     penalty of $5,000 for each such violation.
       ``(2) Continuing violation.--Each day a violation described 
     in paragraph (1) continues shall constitute a separate 
     violation for purposes of such paragraph.
       ``(3) Assessments.--Any penalty imposed under this 
     subsection shall be assessed and collected by the Secretary 
     of the Treasury in the manner provided in section 5321 and 
     any such assessment shall be subject to the provisions of 
     such section.''.
       (c) Criminal Penalty for Failure To Comply With 
     Registration Requirements.--Section 1960(b)(1) of title 18, 
     United States Code, is amended to read as follows:
       ``(1) the term `illegal money transmitting business' means 
     a money transmitting business which affects interstate or 
     foreign commerce in any manner or degree and--
       ``(A) is intentionally operated without an appropriate 
     money transmitting license in a State where such operation is 
     punishable as a misdemeanor or a felony under State law; or
       ``(B) fails to comply with the money transmitting business 
     registration requirements under section 5329 of title 31, 
     United States Code, or regulations prescribed under such 
     section;''.
       (d) Civil Forfeiture.--Section 981(a)(1)(A) of title 18, 
     United States Code, is amended by striking ``or of section 
     1956 or 1957 of this title,'' and inserting ``, of section 
     1956, 1957, or 1960 of this title,''.
       (e) Clerical Amendment.--The table of sections for chapter 
     53 of title 31, United States Code, is amended by inserting 
     after the item relating to section 5328 the following new 
     item:

``5329. Registration of money transmitting businesses.''.

     SEC. 409. CRIMINAL AND CIVIL PENALTY FOR STRUCTURING DOMESTIC 
                   AND INTERNATIONAL TRANSACTIONS.

       (a) Criminal Penalty.--Section 5324 of title 31, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(c) Criminal Penalty.--
       ``(1) In general.--Whoever violates this section shall be 
     fined in accordance with title 18, United States Code, 
     imprisoned for not more than 5 years, or both.
       ``(2) Enhanced penalty for aggravated cases.--Whoever 
     violates this section while violating another law of the 
     United States or as part of a pattern of any illegal activity 
     involving more than $100,000 in a 12-month period shall be 
     fined twice the amount provided in subsection (b)(3) or 
     (c)(3) (as the case may be) of section 3571 of title 18, 
     United States Code, imprisoned for not more than 10 years, or 
     both.''.
       (b) Amendment Relating to Civil Penalty.--Section 
     5321(a)(4)(A) of title 31, United States Code, is amended by 
     striking ``willfully''.
       (c) Technical and Conforming Amendment.--Subsections (a) 
     and (b) of section 5322 of title 31, United States Code, are 
     amended by inserting ``or 5324'' after ``section 5315'' each 
     place such term appears.

     SEC. 410. GAO STUDY OF CASHIERS' CHECKS.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study to determine--
       (1) the extent to which the practice of issuing of 
     cashiers' checks by financial institutions is vulnerable to 
     money laundering schemes;
       (2) the extent to which additional recordkeeping 
     requirements should be imposed on financial institutions 
     which issue cashiers' checks; and
       (3) such other factors relating to the use and regulation 
     of cashiers' checks as the Comptroller General determines to 
     be appropriate.
       (b) Report Required.--Before the end of the 180-day period 
     beginning on the date of enactment of this Act, the 
     Comptroller General shall submit a report to the Congress 
     containing--
       (1) the findings and conclusions in connection with the 
     study conducted pursuant to subsection (a); and
       (2) such recommendations for legislative and administrative 
     action as the Comptroller General may determine to be 
     appropriate.
                                 ______


               RIEGLE (AND METZENBAUM) AMENDMENT NO. 1531

  Mr. RIEGLE (for himself and Mr. Metzenbaum) proposed an amendment to 
the bill S. 1275, supra; as follows:

       At the appropriate place insert:
       Sec.   . Section 609(a) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681g(a)) is amended by adding after paragraph (3) 
     the following:
       ``(4) The dates, original payees, and amounts of any checks 
     upon which is based any ``negative information about the 
     consumer included in the file at the time of the 
     disclosure.''
                                 ______


                  BAUCUS AND WALLOP AMENDMENT NO. 1532

  Mr. RIEGLE (for Mr. Baucus for himself and Mr. Wallop) proposed an 
amendment to the bill S. 1275, supra; as follows:

       On page 56, line 24, strike ``or'';
       On page 57, line 4, after ``;'' insert ``or''; and
       On page 57, between lines 4 and 5 insert:
       ``(c) in a community that has experienced a sudden and 
     significant loss in total employment since the 1990 census or 
     a major dislocation in its primary employment base.''

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