[Congressional Record Volume 140, Number 104 (Tuesday, August 2, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 2, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                     CONFERENCE REPORT ON H.R. 3841

  Mr. GONZALEZ submitted the following conference report and statement 
on the bill (H.R. 3841), to amend the Bank Holding Company Act of 1956, 
the Revised Statutes of the United States, and the Federal Deposit 
Insurance Act to provide for interstate banking and branching:

                  Conference Report (H. Rept. 103-651)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3841), to amend the Bank Holding Company Act of 1956, the 
     Revised Statutes of the United States, and the Federal 
     Deposit Insurance Act to provide for interstate banking and 
     branching, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Riegle-
     Neal Interstate Banking and Branching Efficiency Act of 
     1994''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

               TITLE I--INTERSTATE BANKING AND BRANCHING

Sec. 101. Interstate banking.
Sec. 102. Interstate bank mergers.
Sec. 103. State ``opt-in'' election to permit interstate branching 
              through de novo branches.
Sec. 104. Branching by foreign banks.
Sec. 105. Coordination of examination authority.
Sec. 106. Branch closures.
Sec. 107. Equalizing competitive opportunities for United States and 
              foreign banks.
Sec. 108. Federal Reserve Board study on bank fees.
Sec. 109. Prohibition against deposit production offices.
Sec. 110. Community Reinvestment Act evaluation of banks with 
              interstate branches.
Sec. 111. Restatement of existing law.
Sec. 112. GAO report on data collection under interstate branching.
Sec. 113. Maximum interest rate on certain FMHA loans.
Sec. 114. Notice requirements for banking agency decisions preempting 
              State law.
Sec. 115. Moratorium on examination fees under the International 
              Banking Act of 1978.

                      TITLE II--GENERAL PROVISIONS

Sec. 201. Amendments to Federal Deposit Insurance Act and Federal Home 
              Loan Bank Act.
Sec. 202. Sense of the Senate concerning multilateral export controls.
Sec. 203. Amendments relating to silver medals for Persian Gulf 
              veterans.
Sec. 204. Commemoration of 1995 Special Olympic World Games.
Sec. 205. National Community Service Commemorative Coins.
Sec. 206. Robert F. Kennedy Memorial Commemorative Coins.
Sec. 207. United States Military Academy Bicentennial Commemorative 
              Coins.
Sec. 208. United States Botanic Garden Commemorative Coins.
Sec. 209. Mount Rushmore Commemorative Coins.
Sec. 210. Study and report on the United States financial services 
              system.
Sec. 211. Flexibility in choosing boards of directors.
               TITLE I--INTERSTATE BANKING AND BRANCHING

     SEC. 101. INTERSTATE BANKING.

       (a) In General.--Section 3(d) of the Bank Holding Company 
     Act of 1956 (12 U.S.C. 1842(d)) is amended to read as 
     follows:
       ``(d) Interstate Banking.--
       ``(1) Approvals authorized.--
       ``(A) Acquisition of banks.--The Board may approve an 
     application under this section by a bank holding company that 
     is adequately capitalized and adequately managed to acquire 
     control of, or acquire all or substantially all of the assets 
     of, a bank located in a State other than the home State of 
     such bank holding company, without regard to whether such 
     transaction is prohibited under the law of any State.
       ``(B) Preservation of state age laws.--
       ``(i) In general.--Notwithstanding subparagraph (A), the 
     Board may not approve an application pursuant to such 
     subparagraph that would have the effect of permitting an out-
     of-State bank holding company to acquire a bank in a host 
     State that has not been in existence for the minimum period 
     of time, if any, specified in the statutory law of the host 
     State.
       ``(ii) Special rule for state age laws specifying a period 
     of more than 5 years.--Notwithstanding clause (i), the Board 
     may approve, pursuant to subparagraph (A), the acquisition of 
     a bank that has been in existence for at least 5 years 
     without regard to any longer minimum period of time specified 
     in a statutory law of the host State.
       ``(C) Shell banks.--For purposes of this subsection, a bank 
     that has been chartered solely for the purpose of, and does 
     not open for business prior to, acquiring control of, or 
     acquiring all or substantially all of the assets of, an 
     existing bank shall be deemed to have been in existence for 
     the same period of time as the bank to be acquired.
       ``(D) Effect on state contingency laws.--No provision of 
     this subsection shall be construed as affecting the 
     applicability of a State law that makes an acquisition of a 
     bank contingent upon a requirement to hold a portion of such 
     bank's assets available for call by a State-sponsored housing 
     entity established pursuant to State law, if--
       ``(i) the State law does not have the effect of 
     discriminating against out-of-State banks, out-of-State bank 
     holding companies, or subsidiaries of such banks or bank 
     holding companies;
       ``(ii) that State law was in effect as of the date of 
     enactment of the Riegle-Neal Interstate Banking and Branching 
     Efficiency Act of 1994;
       ``(iii) the Federal Deposit Insurance Corporation has not 
     determined that compliance with such State law would result 
     in an unacceptable risk to the appropriate deposit insurance 
     fund; and
       ``(iv) the appropriate Federal banking agency for such bank 
     has not found that compliance with such State law would place 
     the bank in an unsafe or unsound condition.
       ``(2) Concentration limits.--
       ``(A) Nationwide concentration limits.--The Board may not 
     approve an application pursuant to paragraph (1)(A) if the 
     applicant (including all insured depository institutions 
     which are affiliates of the applicant) controls, or upon 
     consummation of the acquisition for which such application is 
     filed would control, more than 10 percent of the total amount 
     of deposits of insured depository institutions in the United 
     States.
       ``(B) Statewide concentration limits other than with 
     respect to initial entries.--The Board may not approve an 
     application pursuant to paragraph (1)(A) if--
       ``(i) immediately before the consummation of the 
     acquisition for which such application is filed, the 
     applicant (including any insured depository institution 
     affiliate of the applicant) controls any insured depository 
     institution or any branch of an insured depository 
     institution in the home State of any bank to be acquired or 
     in any host State in which any such bank maintains a branch; 
     and
       ``(ii) the applicant (including all insured depository 
     institutions which are affiliates of the applicant), upon 
     consummation of the acquisition, would control 30 percent or 
     more of the total amount of deposits of insured depository 
     institutions in any such State.
       ``(C) Effectiveness of state deposit caps.--No provision of 
     this subsection shall be construed as affecting the authority 
     of any State to limit, by statute, regulation, or order, the 
     percentage of the total amount of deposits of insured 
     depository institutions in the State which may be held or 
     controlled by any bank or bank holding company (including all 
     insured depository institutions which are affiliates of the 
     bank or bank holding company) to the extent the application 
     of such limitation does not discriminate against out-of-State 
     banks, out-of-State bank holding companies, or subsidiaries 
     of such banks or holding companies.
       ``(D) Exceptions to subparagraph (b).--The Board may 
     approve an application pursuant to paragraph (1)(A) without 
     regard to the applicability of subparagraph (B) with respect 
     to any State if--
       ``(i) there is a limitation described in subparagraph (C) 
     in a State statute, regulation, or order which has the effect 
     of permitting a bank or bank holding company (including all 
     insured depository institutions which are affiliates of the 
     bank or bank holding company) to control a greater percentage 
     of total deposits of all insured depository institutions in 
     the State than the percentage permitted under subparagraph 
     (B); or
       ``(ii) the acquisition is approved by the appropriate State 
     bank supervisor of such State and the standard on which such 
     approval is based does not have the effect of discriminating 
     against out-of-State banks, out-of-State bank holding 
     companies, or subsidiaries of such banks or holding 
     companies.
       ``(E) Deposit defined.--For purposes of this paragraph, the 
     term `deposit' has the same meaning as in section 3(l) of the 
     Federal Deposit Insurance Act.
       ``(3) Community reinvestment compliance.--In determining 
     whether to approve an application under paragraph (1)(A), the 
     Board shall--
       ``(A) comply with the responsibilities of the Board 
     regarding such application under section 804 of the Community 
     Reinvestment Act of 1977; and
       ``(B) take into account the applicant's record of 
     compliance with applicable State community reinvestment laws.
       ``(4) Applicability of antitrust laws.--No provision of 
     this subsection shall be construed as affecting--
       ``(A) the applicability of the antitrust laws; or
       ``(B) the applicability, if any, of any State law which is 
     similar to the antitrust laws.
       ``(5) Exception for banks in default or in danger of 
     default.--The Board may approve an application pursuant to 
     paragraph (1)(A) which involves--
       ``(A) an acquisition of 1 or more banks in default or in 
     danger of default; or
       ``(B) an acquisition with respect to which assistance is 
     provided under section 13(c) of the Federal Deposit Insurance 
     Act;
     without regard to subparagraph (B) or (D) of paragraph (1) or 
     paragraph (2) or (3).''.
       (b) State Taxation Authority Not Affected.--Section 7 of 
     the Bank Holding Company Act of 1956 (12 U.S.C. 1846) is 
     amended--
       (1) by striking ``No provision'' and inserting ``(a) In 
     General.--No provision''; and
       (2) by adding at the end the following new subsection:
       ``(b) State Taxation Authority Not Affected.--No provision 
     of this Act shall be construed as affecting the authority of 
     any State or political subdivision of any State to adopt, 
     apply, or administer any tax or method of taxation to any 
     bank, bank holding company, or foreign bank, or any affiliate 
     of any bank, bank holding company, or foreign bank, to the 
     extent that such tax or tax method is otherwise permissible 
     by or under the Constitution of the United States or other 
     Federal law.''.
       (c) Definitions.--Section 2 of the Bank Holding Company Act 
     of 1956 (12 U.S.C. 1841) is amended by adding at the end the 
     following new subsections:
       ``(n) Incorporated Definitions.--For purposes of this Act, 
     the terms `insured depository institution', `appropriate 
     Federal banking agency', `default', `in danger of default', 
     and `State bank supervisor' have the same meanings as in 
     section 3 of the Federal Deposit Insurance Act.
       ``(o) Other Definitions.--For purposes of this Act, the 
     following definitions shall apply:
       ``(1) Adequately capitalized.--The term `adequately 
     capitalized' means a level of capitalization which meets or 
     exceeds all applicable Federal regulatory capital standards.
       ``(2) Antitrust laws.--Except as provided in section 11, 
     the term `antitrust laws'--
       ``(A) has the same meaning as in subsection (a) of the 
     first section of the Clayton Act; and
       ``(B) includes section 5 of the Federal Trade Commission 
     Act to the extent that such section 5 relates to unfair 
     methods of competition.
       ``(3) Branch.--The term `branch' means a domestic branch 
     (as defined in section 3 of the Federal Deposit Insurance 
     Act).
       ``(4) Home state.--The term `home State' means--
       ``(A) with respect to a national bank, the State in which 
     the main office of the bank is located;
       ``(B) with respect to a State bank, the State by which the 
     bank is chartered; and
       ``(C) with respect to a bank holding company, the State in 
     which the total deposits of all banking subsidiaries of such 
     company are the largest on the later of--
       ``(i) July 1, 1966; or
       ``(ii) the date on which the company becomes a bank holding 
     company under this Act.
       ``(5) Host state.--The term `host State' means--
       ``(A) with respect to a bank, a State, other than the home 
     State of the bank, in which the bank maintains, or seeks to 
     establish and maintain, a branch; and
       ``(B) with respect to a bank holding company, a State, 
     other than the home State of the company, in which the 
     company controls, or seeks to control, a bank subsidiary.
       ``(6) Out-of-state bank.--The term `out-of-State bank' 
     means, with respect to any State, a bank whose home State is 
     another State.
       ``(7) Out-of-state bank holding company.--The term `out-of-
     State bank holding company' means, with respect to any State, 
     a bank holding company whose home State is another State.''.
       (d) Subsidiary Depository Institutions as Agents.--Section 
     18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
     amended by adding at the end the following new subsection:
       ``(r) Subsidiary Depository Institutions as Agents for 
     Certain Affiliates.--
       ``(1) In general.--Any bank subsidiary of a bank holding 
     company may receive deposits, renew time deposits, close 
     loans, service loans, and receive payments on loans and other 
     obligations as an agent for a depository institution 
     affiliate.
       ``(2) Bank acting as agent is not a branch.--
     Notwithstanding any other provision of law, a bank acting as 
     an agent in accordance with paragraph (1) for a depository 
     institution affiliate shall not be considered to be a branch 
     of the affiliate.
       ``(3) Prohibitions on activities.--A depository institution 
     may not--
       ``(A) conduct any activity as an agent under paragraph (1) 
     or (6) which such institution is prohibited from conducting 
     as a principal under any applicable Federal or State law; or
       ``(B) as a principal, have an agent conduct any activity 
     under paragraph (1) or (6) which the institution is 
     prohibited from conducting under any applicable Federal or 
     State law.
       ``(4) Existing authority not affected.--No provision of 
     this subsection shall be construed as affecting--
       ``(A) the authority of any depository institution to act as 
     an agent on behalf of any other depository institution under 
     any other provision of law; or
       ``(B) whether a depository institution which conducts any 
     activity as an agent on behalf of any other depository 
     institution under any other provision of law shall be 
     considered to be a branch of such other institution.
       ``(5) Agency relationship required to be consistent with 
     safe and sound banking practices.--An agency relationship 
     between depository institutions under paragraph (1) or (6) 
     shall be on terms that are consistent with safe and sound 
     banking practices and all applicable regulations of any 
     appropriate Federal banking agency.
       ``(6) Affiliated insured savings associations.--An insured 
     savings association which was an affiliate of a bank on July 
     1, 1994, may conduct activities as an agent on behalf of such 
     bank in the same manner as an insured bank affiliate of such 
     bank may act as agent for such bank under this subsection to 
     the extent such activities are conducted only in--
       ``(A) any State in which--
       ``(i) the bank is not prohibited from operating a branch 
     under any provision of Federal or State law; and
       ``(ii) the savings association maintained an office or 
     branch and conducted business as of July 1, 1994; or
       ``(B) any State in which--
       ``(i) the bank is not expressly prohibited from operating a 
     branch under a State law described in section 44(a)(2); and
       ``(ii) the savings association maintained a main office and 
     conducted business as of July 1, 1994.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect at the end of the 1-year period beginning 
     on the date of the enactment of this Act.

     SEC. 102. INTERSTATE BANK MERGERS.

       (a) In General.--The Federal Deposit Insurance Act (12 
     U.S.C. 1811 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 44. INTERSTATE BANK MERGERS.

       ``(a) Approval of Interstate Merger Transactions 
     Authorized.--
       ``(1) In general.--Beginning on June 1, 1997, the 
     responsible agency may approve a merger transaction under 
     section 18(c) between insured banks with different home 
     States, without regard to whether such transaction is 
     prohibited under the law of any State.
       ``(2) State election to prohibit interstate merger 
     transactions.--
       ``(A) In general.--Notwithstanding paragraph (1), a merger 
     transaction may not be approved pursuant to paragraph (1) if 
     the transaction involves a bank the home State of which has 
     enacted a law after the date of enactment of the Riegle-Neal 
     Interstate Banking and Branching Efficiency Act of 1994 and 
     before June 1, 1997, that--
       ``(i) applies equally to all out-of-State banks; and
       ``(ii) expressly prohibits merger transactions involving 
     out-of-State banks.
       ``(B) No effect on prior approvals of merger 
     transactions.--A law enacted by a State pursuant to 
     subparagraph (A) shall have no effect on merger transactions 
     that were approved before the effective date of such law.
       ``(3) State election to permit early interstate merger 
     transactions.--
       ``(A) In general.--A merger transaction may be approved 
     pursuant to paragraph (1) before June 1, 1997, if the home 
     State of each bank involved in the transaction has in effect, 
     as of the date of the approval of such transaction, a law 
     that--
       ``(i) applies equally to all out-of-State banks; and
       ``(ii) expressly permits interstate merger transactions 
     with all out-of-State banks.
       ``(B) Certain conditions allowed.--A host State may impose 
     conditions on a branch within such State of a bank resulting 
     from an interstate merger transaction if--
       ``(i) the conditions do not have the effect of 
     discriminating against out-of-State banks, out-of-State bank 
     holding companies, or any subsidiary of such bank or company 
     (other than on the basis of a nationwide reciprocal treatment 
     requirement);
       ``(ii) the imposition of the conditions is not preempted by 
     Federal law; and
       ``(iii) the conditions do not apply or require performance 
     after May 31, 1997.
       ``(4) Interstate merger transactions involving acquisitions 
     of branches.--
       ``(A) In general.--An interstate merger transaction may 
     involve the acquisition of a branch of an insured bank 
     without the acquisition of the bank only if the law of the 
     State in which the branch is located permits out-of-State 
     banks to acquire a branch of a bank in such State without 
     acquiring the bank.
       ``(B) Treatment of branch for purposes of this section.--In 
     the case of an interstate merger transaction which involves 
     the acquisition of a branch of an insured bank without the 
     acquisition of the bank, the branch shall be treated, for 
     purposes of this section, as an insured bank the home State 
     of which is the State in which the branch is located.
       ``(5) Preservation of state age laws.--
       ``(A) In general.--The responsible agency may not approve 
     an application pursuant to paragraph (1) that would have the 
     effect of permitting an out-of-State bank or out-of-State 
     bank holding company to acquire a bank in a host State that 
     has not been in existence for the minimum period of time, if 
     any, specified in the statutory law of the host State.
       ``(B) Special rule for state age laws specifying a period 
     of more than 5 years.--Notwithstanding subparagraph (A), the 
     responsible agency may approve a merger transaction pursuant 
     to paragraph (1) involving the acquisition of a bank that has 
     been existence at least 5 years without regard to any longer 
     minimum period of time specified in a statutory law of the 
     host State.
       ``(6) Shell banks.--For purposes of this subsection, a bank 
     that has been chartered solely for the purpose of, and does 
     not open for business prior to, acquiring control of, or 
     acquiring all or substantially all of the assets of, an 
     existing bank or branch shall be deemed to have been in 
     existence for the same period of time as the bank or branch 
     to be acquired.
       ``(b) Provisions Relating to Application and Approval 
     Process.--
       ``(1) Compliance with state filing requirements.--
       ``(A) In general.--Any bank which files an application for 
     an interstate merger transaction shall--
       ``(i) comply with the filing requirements of any host State 
     of the bank which will result from such transaction to the 
     extent that the requirement--

       ``(I) does not have the effect of discriminating against 
     out-of-State banks or out-of-State bank holding companies or 
     subsidiaries of such banks or bank holding companies; and
       ``(II) is similar in effect to any requirement imposed by 
     the host State on a nonbanking corporation incorporated in 
     another State that engages in business in the host State; and

       ``(ii) submit a copy of the application to the State bank 
     supervisor of the host State.
       ``(B) Penalty for failure to comply.--The responsible 
     agency may not approve an application for an interstate 
     merger transaction if the applicant materially fails to 
     comply with subparagraph (A).
       ``(2) Concentration limits.--
       ``(A) Nationwide concentration limits.--The responsible 
     agency may not approve an application for an interstate 
     merger transaction if the resulting bank (including all 
     insured depository institutions which are affiliates of the 
     resulting bank), upon consummation of the transaction, would 
     control more than 10 percent of the total amount of deposits 
     of insured depository institutions in the United States.
       ``(B) Statewide concentration limits other than with 
     respect to initial entries.--The responsible agency may not 
     approve an application for an interstate merger transaction 
     if--
       ``(i) any bank involved in the transaction (including all 
     insured depository institutions which are affiliates of any 
     such bank) has a branch in any State in which any other bank 
     involved in the transaction has a branch; and
       ``(ii) the resulting bank (including all insured depository 
     institutions which would be affiliates of the resulting 
     bank), upon consummation of the transaction, would control 30 
     percent or more of the total amount of deposits of insured 
     depository institutions in any such State.
       ``(C) Effectiveness of state deposit caps.--No provision of 
     this subsection shall be construed as affecting the authority 
     of any State to limit, by statute, regulation, or order, the 
     percentage of the total amount of deposits of insured 
     depository institutions in the State which may be held or 
     controlled by any bank or bank holding company (including all 
     insured depository institutions which are affiliates of the 
     bank or bank holding company) to the extent the application 
     of such limitation does not discriminate against out-of-State 
     banks, out-of-State bank holding companies, or subsidiaries 
     of such banks or holding companies.
       ``(D) Exceptions to subparagraph (b).--The responsible 
     agency may approve an application for an interstate merger 
     transaction pursuant to subsection (a) without regard to the 
     applicability of subparagraph (B) with respect to any State 
     if--
       ``(i) there is a limitation described in subparagraph (C) 
     in a State statute, regulation, or order which has the effect 
     of permitting a bank or bank holding company (including all 
     insured depository institutions which are affiliates of the 
     bank or bank holding company) to control a greater percentage 
     of total deposits of all insured depository institutions in 
     the State than the percentage permitted under subparagraph 
     (B); or
       ``(ii) the transaction is approved by the appropriate State 
     bank supervisor of such State and the standard on which such 
     approval is based does not have the effect of discriminating 
     against out-of-State banks, out-of-State bank holding 
     companies, or subsidiaries of such banks or holding 
     companies.
       ``(E) Exception for certain banks.--This paragraph shall 
     not apply with respect to any interstate merger transaction 
     involving only affiliated banks.
       ``(3) Community reinvestment compliance.--In determining 
     whether to approve an application for an interstate merger 
     transaction in which the resulting bank would have a branch 
     or bank affiliate immediately following the transaction in 
     any State in which the bank submitting the application (as 
     the acquiring bank) had no branch or bank affiliate 
     immediately before the transaction, the responsible agency 
     shall--
       ``(A) comply with the responsibilities of the agency 
     regarding such application under section 804 of the Community 
     Reinvestment Act of 1977;
       ``(B) take into account the most recent written evaluation 
     under section 804 of the Community Reinvestment Act of 1977 
     of any bank which would be an affiliate of the resulting 
     bank; and
       ``(C) take into account the record of compliance of any 
     applicant bank with applicable State community reinvestment 
     laws.
       ``(4) Adequacy of capital and management skills.--The 
     responsible agency may approve an application for an 
     interstate merger transaction pursuant to subsection (a) only 
     if--
       ``(A) each bank involved in the transaction is adequately 
     capitalized as of the date the application is filed; and
       ``(B) the responsible agency determines that the resulting 
     bank will continue to be adequately capitalized and 
     adequately managed upon the consummation of the transaction.
       ``(5) Surrender of charter after merger transaction.--The 
     charters of all banks involved in an interstate merger 
     transaction, other than the charter of the resulting bank, 
     shall be surrendered, upon request, to the Federal banking 
     agency or State bank supervisor which issued the charter.
       ``(c) Applicability of Certain Laws to Interstate Banking 
     Operations.--
       ``(1) State taxation authority not affected.--
       ``(A) In general.--No provision of this section shall be 
     construed as affecting the authority of any State or 
     political subdivision of any State to adopt, apply, or 
     administer any tax or method of taxation to any bank, bank 
     holding company, or foreign bank, or any affiliate of any 
     bank, bank holding company, or foreign bank, to the extent 
     such tax or tax method is otherwise permissible by or under 
     the Constitution of the United States or other Federal law.
       ``(B) Imposition of shares tax by host states.--In the case 
     of a branch of an out-of-State bank which results from an 
     interstate merger transaction, a proportionate amount of the 
     value of the shares of the out-of-State bank may be subject 
     to any bank shares tax levied or imposed by the host State, 
     or any political subdivision of such host State that imposes 
     such tax based upon a method adopted by the host State, which 
     may include allocation and apportionment.
       ``(2) Applicability of antitrust laws.--No provision of 
     this section shall be construed as affecting--
       ``(A) the applicability of the antitrust laws; or
       ``(B) the applicability, if any, of any State law which is 
     similar to the antitrust laws.
       ``(3) Reservation of certain rights to states.--No 
     provision of this section shall be construed as limiting in 
     any way the right of a State to--
       ``(A) determine the authority of State banks chartered by 
     that State to establish and maintain branches; or
       ``(B) supervise, regulate, and examine State banks 
     chartered by that State.
       ``(4) State-imposed notice requirements.--A host State may 
     impose any notification or reporting requirement on a branch 
     of an out-of-State bank if the requirement--
       ``(A) does not discriminate against out-of-State banks or 
     bank holding companies; and
       ``(B) is not preempted by any Federal law regarding the 
     same subject.
       ``(d) Operations of the Resulting Bank.--
       ``(1) Continued operations.--A resulting bank may, subject 
     to the approval of the appropriate Federal banking agency, 
     retain and operate, as a main office or a branch, any office 
     that any bank involved in an interstate merger transaction 
     was operating as a main office or a branch immediately before 
     the merger transaction.
       ``(2) Additional branches.--Following the consummation of 
     any interstate merger transaction, the resulting bank may 
     establish, acquire, or operate additional branches at any 
     location where any bank involved in the transaction could 
     have established, acquired, or operated a branch under 
     applicable Federal or State law if such bank had not been a 
     party to the merger transaction.
       ``(3) Certain conditions and commitments continued.--If, as 
     a condition for the acquisition of a bank by an out-of-State 
     bank holding company before the date of the enactment of the 
     Riegle-Neal Interstate Banking and Branching Efficiency Act 
     of 1994--
       ``(A) the home State of the acquired bank imposed 
     conditions on such acquisition by such out-of-State bank 
     holding company; or
       ``(B) the bank holding company made commitments to such 
     State in connection with the acquisition,
     the State may enforce such conditions and commitments with 
     respect to such bank holding company or any affiliated 
     successor company which controls a bank or branch in such 
     State as a result of an interstate merger transaction to the 
     same extent as the State could enforce such conditions or 
     commitments against the bank holding company before the 
     consummation of the merger transaction.
       ``(e) Exception for Banks in Default or in Danger of 
     Default.--If an application under subsection (a)(1) for 
     approval of a merger transaction which involves 1 or more 
     banks in default or in danger of default or with respect to 
     which the Corporation provides assistance under section 
     13(c), the responsible agency may approve such application 
     without regard to subsection (b), or paragraph (2), (4), or 
     (5) of subsection (a).
       ``(f) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Adequately capitalized.--The term `adequately 
     capitalized' has the same meaning as in section 38.
       ``(2) Antitrust laws.--The term `antitrust laws'--
       ``(A) has the same meaning as in subsection (a) of the 
     first section of the Clayton Act; and
       ``(B) includes section 5 of the Federal Trade Commission 
     Act to the extent such section 5 relates to unfair methods of 
     competition.
       ``(3) Branch.--The term `branch' means any domestic branch.
       ``(4) Home state.--The term `home State'--
       ``(A) means--
       ``(i) with respect to a national bank, the State in which 
     the main office of the bank is located; and
       ``(ii) with respect to a State bank, the State by which the 
     bank is chartered; and
       ``(B) with respect to a bank holding company, has the same 
     meaning as in section 2(o)(4) of the Bank Holding Company Act 
     of 1956.
       ``(5) Host state.--The term `host State' means, with 
     respect to a bank, a State, other than the home State of the 
     bank, in which the bank maintains, or seeks to establish and 
     maintain, a branch.
       ``(6) Interstate merger transaction.--The term `interstate 
     merger transaction' means any merger transaction approved 
     pursuant to subsection (a)(1).
       ``(7) Merger transaction.--The term `merger transaction' 
     has the meaning determined under section 18(c)(3).
       ``(8) Out-of-state bank.--The term `out-of-State bank' 
     means, with respect to any State, a bank whose home State is 
     another State.
       ``(9) Out-of-state bank holding company.--The term `out-of-
     State bank holding company' means, with respect to any State, 
     a bank holding company whose home State is another State.
       ``(10) Responsible agency.--The term `responsible agency' 
     means the agency determined in accordance with section 
     18(c)(2) with respect to a merger transaction.
       ``(11) Resulting bank.--The term `resulting bank' means a 
     bank that has resulted from an interstate merger transaction 
     under this section.''.
       (b) Technical and Conforming Amendments.--
       (1) Revised statutes.--Section 5155 of the Revised Statutes 
     (12 U.S.C. 36) is amended--
       (A) by redesignating subsections (d) through (h) as 
     subsections (h) through (l), respectively; and
       (B) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Branches Resulting From Interstate Merger 
     Transactions.--A national bank resulting from an interstate 
     merger transaction (as defined in section 44(f)(6) of the 
     Federal Deposit Insurance Act) may maintain and operate a 
     branch in a State other than the home State (as defined in 
     subsection (g)(3)(B)) of such bank in accordance with section 
     44 of the Federal Deposit Insurance Act.
       ``(e) Exclusive Authority for Additional Branches.--
       ``(1) In general.--Effective June 1, 1997, a national bank 
     may not acquire, establish, or operate a branch in any State 
     other than the bank's home State (as defined in subsection 
     (g)(3)(B)) or a State in which the bank already has a branch 
     unless the acquisition, establishment, or operation of such 
     branch in such State by such national bank is authorized 
     under this section or section 13(f), 13(k), or 44 of the 
     Federal Deposit Insurance Act.
       ``(2) Retention of branches.--In the case of a national 
     bank which relocates the main office of such bank from 1 
     State to another State after May 31, 1997, the bank may 
     retain and operate branches within the State which was the 
     bank's home State (as defined in subsection (g)(3)(B)) before 
     the relocation of such office only to the extent the bank 
     would be authorized, under this section or any other 
     provision of law referred to in paragraph (1), to acquire, 
     establish, or commence to operate a branch in such State if--
       ``(A) the bank had no branches in such State; or
       ``(B) the branch resulted from--
       ``(i) an interstate merger transaction approved pursuant to 
     section 44 of the Federal Deposit Insurance Act; or
       ``(ii) a transaction after May 31, 1997, pursuant to which 
     the bank received assistance from the Federal Deposit 
     Insurance Corporation under section 13(c) of such Act.
       ``(f) Law Applicable to Interstate Branching Operations.--
       ``(1) Law applicable to national bank branches.--
       ``(A) In general.--The laws of the host State regarding 
     community reinvestment, consumer protection, fair lending, 
     and establishment of intrastate branches shall apply to any 
     branch in the host State of an out-of-State national bank to 
     the same extent as such State laws apply to a branch of a 
     bank chartered by that State, except--
       ``(i) when Federal law preempts the application of such 
     State laws to a national bank; or
       ``(ii) when the Comptroller of the Currency determines that 
     the application of such State laws would have a 
     discriminatory effect on the branch in comparison with the 
     effect the application of such State laws would have with 
     respect to branches of a bank chartered by the host State.
       ``(B) Enforcement of applicable state laws.--The provisions 
     of any State law to which a branch of a national bank is 
     subject under this paragraph shall be enforced, with respect 
     to such branch, by the Comptroller of the Currency.
       ``(2) Treatment of branch as bank.--All laws of a host 
     State, other than the laws regarding community reinvestment, 
     consumer protection, fair lending, establishment of 
     intrastate branches, and the application or administration of 
     any tax or method of taxation, shall apply to a branch (in 
     such State) of an out-of-State national bank to the same 
     extent as such laws would apply if the branch were a national 
     bank the main office of which is in such State.
       ``(3) Rule of construction.--No provision of this 
     subsection may be construed as affecting the legal standards 
     for preemption of the application of State law to national 
     banks.''.
       (2) Act of may 1, 1886.--Section 2 of the Act entitled ``An 
     Act to enable national banking associations to increase their 
     capital stock and to change their names and locations.'' and 
     approved May 1, 1886 (12 U.S.C. 30) is amended by adding at 
     the end the following new subsection:
       ``(c) Coordination With Revised Statutes.--In the case of a 
     national bank which relocates the main office of such bank 
     from 1 State to another State after May 31, 1997, the bank 
     may retain and operate branches within the State from which 
     the bank relocated such office only to the extent authorized 
     in section 5155(e)(2) of the Revised Statutes.''.
       (3) Federal deposit insurance act.--
       (A) Exclusive authority for additional branches of state 
     nonmember banks.--Section 18(d) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(d)) is amended by adding at the 
     end the following new paragraph:
       ``(3) Exclusive authority for additional branches.--
       ``(A) In general.--Effective June 1, 1997, a State 
     nonmember bank may not acquire, establish, or operate a 
     branch in any State other than the bank's home State (as 
     defined in section 44(f)(4)) or a State in which the bank 
     already has a branch unless the acquisition, establishment, 
     or operation of a branch in such State by a State nonmember 
     bank is authorized under this subsection or section 13(f), 
     13(k), or 44.
       ``(B) Retention of branches.--In the case of a State 
     nonmember bank which relocates the main office of such bank 
     from 1 State to another State after May 31, 1997, the bank 
     may retain and operate branches within the State which was 
     the bank's home State (as defined in section 44(f)(4)) before 
     the relocation of such office only to the extent the bank 
     would be authorized, under this section or any other 
     provision of law referred to in subparagraph (A), to acquire, 
     establish, or commence to operate a branch in such State if--
       ``(i) the bank had no branches in such State; or
       ``(ii) the branch resulted from--

       ``(I) an interstate merger transaction approved pursuant to 
     section 44; or
       ``(II) a transaction after May 31, 1997, pursuant to which 
     the bank received assistance from the Corporation under 
     section 13(c).''.

       (B) Activities of branches of state banks resulting from 
     interstate merger transactions.--Section 24 of the Federal 
     Deposit Insurance Act (12 U.S.C. 1831a) is amended by adding 
     at the end the following new subsection:
       ``(j) Activities of Branches of Out-of-State Banks.--
       ``(1) In general.--The laws of a host State, including laws 
     regarding community reinvestment, consumer protection, fair 
     lending, and establishment of intrastate branches, shall 
     apply to any branch in the host State of an out-of-State 
     State bank to the same extent as such State laws apply to a 
     branch of a bank chartered by that State.
       ``(2) Activities of branches.--An insured State bank that 
     establishes a branch in a host State may not conduct any 
     activity at such branch that is not permissible for a bank 
     chartered by the host State.
       ``(3) Definitions.--The terms `host State', `interstate 
     merger transaction', and ''out-of-State bank' have the same 
     meanings as in section 44(f).''.
       (4) Act of november 7, 1918.--The Act entitled ``An Act to 
     provide for the consolidation of the national banking 
     associations.'' and approved November 7, 1918, (12 U.S.C. 215 
     et seq.) is amended--
       (A) by redesignating section 2 as section 3;
       (B) by redesignating section 3 as section 5;
       (C) in the 1st section, by striking ``That (a) any national 
     banking association'' and inserting the following:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `National Bank Consolidation 
     and Merger Act'.

     ``SEC. 2. CONSOLIDATION OF BANKS WITHIN THE SAME STATE.

       ``(a) In General.--Any national bank''; and
       (D) by inserting after section 3 (as so redesignated under 
     subparagraph (A) of this paragraph) the following new 
     section:

     ``SEC. 4. INTERSTATE CONSOLIDATIONS AND MERGERS.

       ``(a) In General.--A national bank may engage in a 
     consolidation or merger under this Act with an out-of-State 
     bank if the consolidation or merger is approved pursuant to 
     section 44 of the Federal Deposit Insurance Act.
       ``(b) Scope of Application.--Subsection (a) shall not apply 
     with respect to any consolidation or merger before June 1, 
     1997, unless the home State of each bank involved in the 
     transaction has in effect a law described in section 44(a)(3) 
     of the Federal Deposit Insurance Act.
       ``(c) Definitions.--The terms `home State' and `out-of-
     State bank' have the same meaning as in section 44(f) of the 
     Federal Deposit Insurance Act.''.
       (5) Home owners' loan act.--Section 3 of the Home Owners' 
     Loan Act (12 U.S.C. 1462a) is amended--
       (A) by redesignating subsections (f) through (i) as 
     subsections (g) through (j), respectively; and
       (B) by inserting after subsection (e), the following new 
     subsection:
       ``(f) State Homestead Provisions.--No provision of this Act 
     or any other provision of law administered by the Director 
     shall be construed as superseding any homestead provision of 
     any State constitution, including any implementing State 
     statute, in effect on the date of enactment of the Riegle-
     Neal Interstate Banking and Branching Efficiency Act of 1994, 
     or any subsequent amendment to such a State constitutional or 
     statutory provision in effect on such date, that exempts the 
     homestead of any person from foreclosure, or forced sale, for 
     the payment of all debts, other than a purchase money 
     obligation relating to the homestead, taxes due on the 
     homestead, or an obligation arising from work and material 
     used in constructing improvements on the homestead.''.

     SEC. 103. STATE ``OPT-IN'' ELECTION TO PERMIT INTERSTATE 
                   BRANCHING THROUGH DE NOVO BRANCHES.

       (a) National Banks.--Section 5155 of the Revised Statutes 
     (12 U.S.C. 36) is amended by inserting after subsection (f) 
     (as added by section 102(b)) the following new subsection:
       ``(g) State `Opt-In' Election To Permit Interstate 
     Branching Through De Novo Branches.--
       ``(1) In general.--Subject to paragraph (2), the 
     Comptroller of the Currency may approve an application by a 
     national bank to establish and operate a de novo branch in a 
     State (other than the bank's home State) in which the bank 
     does not maintain a branch if--
       ``(A) there is in effect in the host State a law that--
       ``(i) applies equally to all banks; and
       ``(ii) expressly permits all out-of-State banks to 
     establish de novo branches in such State; and
       ``(B) the conditions established in, or made applicable to 
     this paragraph by, paragraph (2) are met.
       ``(2) Conditions on establishment and operation of 
     interstate branch.--
       ``(A) Establishment.--An application by a national bank to 
     establish and operate a de novo branch in a host State shall 
     be subject to the same requirements and conditions to which 
     an application for an interstate merger transaction is 
     subject under paragraphs (1), (3), and (4) of section 44(b) 
     of the Federal Deposit Insurance Act.
       ``(B) Operation.--Subsections (c) and (d)(2) of section 44 
     of the Federal Deposit Insurance Act shall apply with respect 
     to each branch of a national bank which is established and 
     operated pursuant to an application approved under this 
     subsection in the same manner and to the same extent such 
     provisions of such section 44 apply to a branch of a national 
     bank which resulted from an interstate merger transaction 
     approved pursuant to such section 44.
       ``(3) Definitions.--The following definitions shall apply 
     for purposes of this section:
       ``(A) De novo branch.--The term `de novo branch' means a 
     branch of a national bank which--
       ``(i) is originally established by the national bank as a 
     branch; and
       ``(ii) does not become a branch of such bank as a result 
     of--

       ``(I) the acquisition by the bank of an insured depository 
     institution or a branch of an insured depository institution; 
     or
       ``(II) the conversion, merger, or consolidation of any such 
     institution or branch.

       ``(B) Home state.--The term `home State' means the State in 
     which the main office of a national bank is located.
       ``(C) Host state.--The term `host State' means, with 
     respect to a bank, a State, other than the home State of the 
     bank, in which the bank maintains, or seeks to establish and 
     maintain, a branch.''.
       (b) State Banks.--Section 18(d) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(d)) is amended by inserting 
     after paragraph (3) (as added by section 102(b)(3) of this 
     title) the following new paragraph:
       ``(4) State `opt-in' election to permit interstate 
     branching through de novo branches.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Corporation may approve an application by an insured State 
     nonmember bank to establish and operate a de novo branch in a 
     State (other than the bank's home State) in which the bank 
     does not maintain a branch if--
       ``(i) there is in effect in the host State a law that--

       ``(I) applies equally to all banks; and
       ``(II) expressly permits all out-of-State banks to 
     establish de novo branches in such State; and

       ``(ii) the conditions established in, or made applicable to 
     this paragraph by, subparagraph (B) are met.
       ``(B) Conditions on establishment and operation of 
     interstate branch.--
       ``(i) Establishment.--An application by an insured State 
     nonmember bank to establish and operate a de novo branch in a 
     host State shall be subject to the same requirements and 
     conditions to which an application for a merger transaction 
     is subject under paragraphs (1), (3), and (4) of section 
     44(b).
       ``(ii) Operation.--Subsections (c) and (d)(2) of section 44 
     shall apply with respect to each branch of an insured State 
     nonmember bank which is established and operated pursuant to 
     an application approved under this paragraph in the same 
     manner and to the same extent such provisions of such section 
     apply to a branch of a State bank which resulted from a 
     merger transaction under such section 44.
       ``(C) De novo branch defined.--For purposes of this 
     paragraph, the term `de novo branch' means a branch of a 
     State bank which--
       ``(i) is originally established by the State bank as a 
     branch; and
       ``(ii) does not become a branch of such bank as a result 
     of--

       ``(I) the acquisition by the bank of an insured depository 
     institution or a branch of an insured depository institution; 
     or
       ``(II) the conversion, merger, or consolidation of any such 
     institution or branch.

       ``(D) Home state defined.--The term `home State' means the 
     State by which a State bank is chartered.
       ``(E) Host state defined.--The term `host State' means, 
     with respect to a bank, a State, other than the home State of 
     the bank, in which the bank maintains, or seeks to establish 
     and maintain, a branch.''.

     SEC. 104. BRANCHING BY FOREIGN BANKS.

       (a) In General.--Section 5(a) of the International Banking 
     Act of 1978 (12 U.S.C. 3103(a)) is amended to read as 
     follows:
       ``(a) Interstate Branching and Agency Operations.--
       ``(1) Federal branch or agency.--Subject to the provisions 
     of this Act and with the prior written approval by the Board 
     and the Comptroller of the Currency of an application, a 
     foreign bank may establish and operate a Federal branch or 
     agency in any State outside the home State of such foreign 
     bank to the extent that the establishment and operation of 
     such branch would be permitted under section 5155(g) of the 
     Revised Statutes or section 44 of the Federal Deposit 
     Insurance Act if the foreign bank were a national bank whose 
     home State is the same State as the home State of the foreign 
     bank.
       ``(2) State branch or agency.--Subject to the provisions of 
     this Act and with the prior written approval by the Board and 
     the appropriate State bank supervisor of an application, a 
     foreign bank may establish and operate a State branch or 
     agency in any State outside the home State of such foreign 
     bank to the extent that such establishment and operation 
     would be permitted under section 18(d)(4) or 44 of the 
     Federal Deposit Insurance Act if the foreign bank were a 
     State bank whose home State is the same State as the home 
     State of the foreign bank.
       ``(3) Criteria for determination.--In approving an 
     application under paragraph (1) or (2), the Board and (in the 
     case of an application under paragraph (1)) the Comptroller 
     of the Currency--
       ``(A) shall apply the standards applicable to the 
     establishment of a foreign bank office in the United States 
     under section 7(d);
       ``(B) may not approve an application unless the Board and 
     (in the case of an application under paragraph (1)) the 
     Comptroller of the Currency--
       ``(i) determine that the foreign bank's financial 
     resources, including the capital level of the bank, are 
     equivalent to those required for a domestic bank to be 
     approved for branching under section 5155 of the Revised 
     Statutes and section 44 of the Federal Deposit Insurance Act; 
     and
       ``(ii) consult with the Secretary of the Treasury regarding 
     capital equivalency; and
       ``(C) shall apply the same requirements and conditions to 
     which an application for an interstate merger transaction is 
     subject under paragraphs (1), (3), and (4) of section 44(b) 
     of the Federal Deposit Insurance Act.
       ``(4) Operation.--Subsections (c) and (d)(2) of section 44 
     of the Federal Deposit Insurance Act shall apply with respect 
     to each branch and agency of a foreign bank which is 
     established and operated pursuant to an application approved 
     under this subsection in the same manner and to the same 
     extent such provisions of such section apply to a domestic 
     branch of a national or State bank (as such terms are defined 
     in section 3 of such Act) which resulted from a merger 
     transaction under such section 44.
       ``(5) Exclusive authority for additional branches.--Except 
     as provided in this section, a foreign bank may not, directly 
     or indirectly, acquire, establish, or operate a branch or 
     agency in any State other than the home State of such bank.
       ``(6) Requirement for a separate subsidiary.--If the Board 
     or the Comptroller of the Currency, taking into account 
     differing regulatory or accounting standards, finds that 
     adherence by a foreign bank to capital requirements 
     equivalent to those imposed under section 5155 of the Revised 
     Statutes and section 44 of the Federal Deposit Insurance Act 
     could be verified only if the banking activities of such bank 
     in the United States are carried out in a domestic banking 
     subsidiary within the United States, the Board and (in the 
     case of an application under paragraph (1)) the Comptroller 
     of the Currency may approve an application under paragraph 
     (1) or (2) subject to a requirement that the foreign bank or 
     company controlling the foreign bank establish a domestic 
     banking subsidiary in the United States.
       ``(7) Additional authority for interstate branches and 
     agencies of foreign banks.--Notwithstanding paragraphs (1) 
     and (2), a foreign bank may, with the approval of the Board 
     and the Comptroller of the Currency, establish and operate a 
     Federal branch or Federal agency or, with the approval of the 
     Board and the appropriate State bank supervisor, a State 
     branch or State agency in any State outside the foreign 
     bank's home State if--
       ``(A) the establishment and operation of a branch or agency 
     is expressly permitted by the State in which the branch or 
     agency is to be established; and
       ``(B) in the case of a Federal or State branch, the branch 
     receives only such deposits as would be permissible for a 
     corporation organized under section 25A of the Federal 
     Reserve Act.
       ``(9) Home state of domestic bank defined.--For purposes of 
     this subsection, the term `home State' means--
       ``(A) with respect to a national bank, the State in which 
     the main office of the bank is located; and
       ``(B) with respect to a State bank, the State by which the 
     bank is chartered.''.
       (b) Continued Authority for Limited Branches, Agencies, or 
     Commercial Lending Companies.--Section 5(b) of the 
     International Banking Act of 1978 (12 U.S.C. 3103(b)) is 
     amended by adding at the end the following new sentence: 
     ``Notwithstanding subsection (a), a foreign bank may continue 
     to operate, after the enactment of the Riegle-Neal Interstate 
     Banking and Branching Efficiency Act of 1994, any Federal 
     branch, State branch, Federal agency, State agency, or 
     commercial lending company subsidiary which such bank was 
     operating on the day before the date of the enactment of such 
     Act to the extent the branch, agency, or subsidiary 
     continues, after the enactment of such Act, to engage in 
     operations which were lawful under the laws in effect on the 
     day before such date.''.
       (c) Clarification of Branching Rules in the Case of a 
     Foreign Bank With a Domestic Bank Subsidiary.--Section 5 of 
     the International Banking Act of 1978 (12 U.S.C. 3103) is 
     amended by adding at the end the following new subsection:
       ``(d) Clarification of Branching Rules in the Case of a 
     Foreign Bank With a Domestic Bank Subsidiary.--In the case of 
     a foreign bank that has a domestic bank subsidiary within the 
     United States--
       ``(1) the fact that such bank controls a domestic bank 
     shall not affect the authority of the foreign bank to 
     establish Federal and State branches or agencies to the 
     extent permitted under subsection (a); and
       ``(2) the fact that the domestic bank is controlled by a 
     foreign bank which has Federal or State branches or agencies 
     in States other than the home State of such domestic bank 
     shall not affect the authority of the domestic bank to 
     establish branches outside the home State of the domestic 
     bank to the extent permitted under section 5155(g) of the 
     Revised Statutes or section 18(d)(4) or 44 of the Federal 
     Deposit Insurance Act, as the case may be.''.
       (d) Home State Determinations.--Section 5(c) of the 
     International Banking Act of 1978 (12 U.S.C. 3103(c)) is 
     amended to read as follows:
       ``(c) Determination of Home State of Foreign Bank.--For the 
     purposes of this section--
       ``(1) in the case of a foreign bank that has any branch, 
     agency, subsidiary commercial lending company, or subsidiary 
     bank in more than 1 State, the home State of the foreign bank 
     is the 1 State of such States which is selected to be the 
     home State by the foreign bank or, in default of any such 
     selection, by the Board; and
       ``(2) in the case of a foreign bank that does not have a 
     branch, agency, subsidiary commercial lending company, or 
     subsidiary bank in more than 1 State, the home State of the 
     foreign bank is the State in which the foreign bank has a 
     branch, agency, subsidiary commercial lending company, or 
     subsidiary bank.''.

     SEC. 105. COORDINATION OF EXAMINATION AUTHORITY.

       Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 
     1820) is amended by inserting after subsection (g) the 
     following new subsection:
       ``(h) Coordination of Examination Authority.--
       ``(1) In general.--The appropriate State bank supervisor of 
     a host State may examine a branch operated in such State by 
     an out-of-State insured State bank that resulted from an 
     interstate merger transaction approved under section 44 or a 
     branch established in such State pursuant to section 5155(g) 
     of the Revised Statutes or section 18(d)(4)--
       ``(A) for the purpose of determining compliance with host 
     State laws, including those that govern banking, community 
     reinvestment, fair lending, consumer protection, and 
     permissible activities; and
       ``(B) to ensure that the activities of the branch are not 
     conducted in an unsafe or unsound manner.
       ``(2) Enforcement.--If the State bank supervisor of a host 
     State determines that there is a violation of the law of the 
     host State concerning the activities being conducted by a 
     branch described in paragraph (1) or that the branch is being 
     operated in an unsafe and unsound manner, the State bank 
     supervisor of the host State or, to the extent authorized by 
     the law of the host State, a State law enforcement officer 
     may undertake such enforcement actions and proceedings as 
     would be permitted under the law of the host State as if the 
     branch were a bank chartered by that host State.
       ``(3) Cooperative agreement.--The State bank supervisors 
     from 2 or more States may enter into cooperative agreements 
     to facilitate State regulatory supervision of State banks, 
     including cooperative agreements relating to the coordination 
     of examinations and joint participation in examinations.
       ``(4) Federal regulatory authority.--No provision of this 
     subsection shall be construed as limiting in any way the 
     authority of an appropriate Federal banking agency to examine 
     or to take any enforcement actions or proceedings against any 
     bank or branch of a bank for which the agency is the 
     appropriate Federal banking agency.''.

     SEC. 106. BRANCH CLOSURES.

       Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 
     1831r-1) is amended by adding at the end the following new 
     subsection:
       ``(d) Branch Closures in Interstate Banking or Branching 
     Operations.--
       ``(1) Notice requirements.--In the case of an interstate 
     bank which proposes to close any branch in a low- or moderate 
     income area, the notice required under subsection (b)(2) 
     shall contain the mailing address of the appropriate Federal 
     banking agency and a statement that comments on the proposed 
     closing of such branch may be mailed to such agency.
       ``(2) Action required by appropriate federal banking 
     agency.--If, in the case of a branch referred to in paragraph 
     (1)--
       ``(A) a person from the area in which such branch is 
     located--
       ``(i) submits a written request relating to the closing of 
     such branch to the appropriate Federal banking agency; and
       ``(ii) includes a statement of specific reasons for the 
     request, including a discussion of the adverse effect of such 
     closing on the availability of banking services in the area 
     affected by the closing of the branch; and
       ``(B) the agency concludes that the request is not 
     frivolous,
     the agency shall consult with community leaders in the 
     affected area and convene a meeting of representatives of the 
     agency and other interested depository institution regulatory 
     agencies with community leaders in the affected area and such 
     other individuals, organizations, and depository institutions 
     (as defined in section 19(b)(1)(A) of the Federal Reserve 
     Act) as the agency may determine, in the discretion of the 
     agency, to be appropriate, to explore the feasibility of 
     obtaining adequate alternative facilities and services for 
     the affected area, including the establishment of a new 
     branch by another depository institution, the chartering of a 
     new depository institution, or the establishment of a 
     community development credit union, following the closing of 
     the branch.
       ``(3) No effect on closing.--No action by the appropriate 
     Federal banking agency under paragraph (2) shall affect the 
     authority of an interstate bank to close a branch (including 
     the timing of such closing) if the requirements of 
     subsections (a) and (b) have been met by such bank with 
     respect to the branch being closed.
       ``(4) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Interstate bank defined.--The term `interstate bank' 
     means a bank which maintains branches in more than 1 State.
       ``(B) Low- or moderate-income area.--The term `low- or 
     moderate-income area' means a census tract for which the 
     median family income is--
       ``(i) less than 80 percent of the median family income for 
     the metropolitan statistical area (as designated by the 
     Director of the Office of Management and Budget) in which the 
     census tract is located; or
       ``(ii) in the case of a census tract which is not located 
     in a metropolitan statistical area, less than 80 percent of 
     the median family income for the State in which the census 
     tract is located, as determined without taking into account 
     family income in metropolitan statistical areas in such 
     State.''.

     SEC. 107. EQUALIZING COMPETITIVE OPPORTUNITIES FOR UNITED 
                   STATES AND FOREIGN BANKS.

       (a) Regulatory Objectives.--Section 6 of the International 
     Banking Act of 1978 (12 U.S.C. 3104) is amended--
       (1) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively; and
       (2) by inserting after ``sec. 6'' the following new 
     subsection:
       ``(a) Objective.--In implementing this section, the 
     Comptroller and the Federal Deposit Insurance Corporation 
     shall each, by affording equal competitive opportunities to 
     foreign and United States banking organizations in their 
     United States operations, ensure that foreign banking 
     organizations do not receive an unfair competitive advantage 
     over United States banking organizations.''.
       (b) Review of Regulations.--
       (1) In general.--Each Federal banking agency, after 
     consultation with the other Federal banking agencies to 
     assure uniformity, shall revise the regulations adopted by 
     such agency under section 6 of the International Banking Act 
     of 1978 to ensure that the regulations are consistent with 
     the objective set forth in section 6(a) of the International 
     Banking Act of 1978.
       (2) Specific factors.--In carrying out paragraph (1), each 
     Federal banking agency shall consider whether to permit an 
     uninsured branch of a foreign bank to accept initial deposits 
     of less than $100,000 only from--
       (A) individuals who are not citizens or residents of the 
     United States at the time of the initial deposit;
       (B) individuals who--
       (i) are not citizens of the United States;
       (ii) are residents of the United States; and
       (iii) are employed by a foreign bank, foreign business, 
     foreign government, or recognized international organization;
       (C) persons to whom the branch or foreign bank has extended 
     credit or provided other nondeposit banking services;
       (D) foreign businesses and large United States businesses;
       (E) foreign governmental units and recognized international 
     organizations; and
       (F) persons who are depositing funds in connection with the 
     issuance of a financial instrument by the branch for the 
     transmission of funds.
       (3) Reduction in regulatory de minimis exemption.--In 
     carrying out paragraph (1), each Federal banking agency shall 
     limit any exemption which is--
       (A) available under any regulation prescribed pursuant to 
     section 6(d) of the International Banking Act of 1978 
     providing for the acceptance of initial deposits of less than 
     $100,000 by an uninsured branch of a foreign bank; and
       (B) based on a percentage of the average deposits at such 
     branch;
     to not more than 1 percent of the average deposits at such 
     branch.
       (4) Additional relevant considerations.--In carrying out 
     paragraph (1), each Federal banking agency shall also 
     consider the importance of maintaining and improving the 
     availability of credit to all sectors of the United States 
     economy, including the international trade finance sector of 
     the United State economy.
       (5) Deadline for prescribing revised regulations.--Each 
     Federal banking agency--
       (A) shall publish final regulations under paragraph (1) in 
     the Federal Register not later than 12 months after the date 
     of enactment of this Act; and
       (B) may establish reasonable transition rules to facilitate 
     any termination of any deposit-taking activities that were 
     permissible under regulations that were in effect before the 
     date of enactment of this Act.
       (6) Definitions.--For purposes of this subsection--
       (A) the term ``Federal banking agency'' means--
       (i) the Comptroller of the Currency with respect to Federal 
     branches of foreign banks; and
       (ii) the Federal Deposit Insurance Corporation with respect 
     to State branches of foreign banks; and
       (B) the term ``uninsured branch'' means a branch of a 
     foreign bank that is not an insured branch, as defined in 
     section 3(s)(3) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(s)(3)).
       (c) Amendment Affirming That Consumer Protection Laws Apply 
     to Foreign Banks.--Section 9(b) of the International Banking 
     Act of 1978 (12 U.S.C. 3106a) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (B) by inserting after ``which--'' the following new 
     subparagraph:
       ``(A) impose requirements that protect the rights of 
     consumers in financial transactions, to the extent that the 
     branch, agency, or commercial lending company engages in 
     activities that are subject to such laws;''; and
       (2) in paragraph (2)--
       (A) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (B) by inserting after ``which--'' the following new 
     subparagraph:
       ``(A) impose requirements that protect the rights of 
     consumers in financial transactions, to the extent that the 
     branch, agency, or commercial lending company engages in 
     activities that are subject to such laws;''.
       (d) Insured Banks in Territories Not Treated as Foreign 
     Banks for Purposes of Retail Deposit-Taking Rule.--Section 
     6(d) of the International Banking Act of 1978 (12 U.S.C. 
     3104(c)) (as so redesignated by subsection (a)(1) of this 
     section) is amended by adding at the end the following new 
     paragraph:
       ``(3) Insured banks in u.s. territories.--For purposes of 
     this subsection, the term `foreign bank' does not include any 
     bank organized under the laws of any territory of the United 
     States, Puerto Rico, Guam, American Samoa, or the Virgin 
     Islands the deposits of which are insured by the Federal 
     Deposit Insurance Corporation pursuant to the Federal Deposit 
     Insurance Act.''.
       (e) Amendment Relating to Shell Branches.--
       (1) In general.--Section 7 of the International Banking Act 
     of 1978 (12 U.S.C. 3105) is amended by adding at the end the 
     following new subsection:
       ``(k) Management of Shell Branches.--
       ``(1) Transactions prohibited.--A branch or agency of a 
     foreign bank shall not manage, through an office of the 
     foreign bank which is located outside the United States and 
     is managed or controlled by such branch or agency, any type 
     of activity that a bank organized under the laws of the 
     United States, any State, or the District of Columbia is not 
     permitted to manage at any branch or subsidiary of such bank 
     which is located outside the United States.
       ``(2) Regulations.--Any regulations promulgated to carry 
     out this section--
       ``(A) shall be promulgated in accordance with section 13; 
     and
       ``(B) shall be uniform, to the extent practicable.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall become effective at the end of the 180-day period 
     beginning on the date of enactment of this Act.
       (f) Meeting Community Credit Needs.--Section 5(a) of the 
     International Banking Act of 1978 (12 U.S.C. 3103(a)) (as 
     amended by section 104 of this Act) is amended by inserting 
     after paragraph (7) the following new paragraph:
       ``(8) Continuing requirement for meeting community credit 
     needs after initial interstate entry by acquisition.--
       ``(A) In general.--If a foreign bank acquires a bank or a 
     branch of a bank, in a State in which the foreign bank does 
     not maintain a branch, and such acquired bank is, or is part 
     of, a regulated financial institution (as defined in section 
     803 of the Community Reinvestment Act of 1977), the Community 
     Reinvestment Act of 1977 shall continue to apply to each 
     branch of the foreign bank which results from the acquisition 
     as if such branch were a regulated financial institution.
       ``(B) Exception for branch that receives only deposits 
     permissible for an edge act corporation.--Paragraph (1) shall 
     not apply to any branch that receives only such deposits as 
     are permissible for a corporation organized under section 25A 
     of the Federal Reserve Act to receive.''.

     SEC. 108. FEDERAL RESERVE BOARD STUDY ON BANK FEES.

       (a) In General.--Section 1002 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 
     note) is amended to read as follows:

     ``SEC. 1002. SURVEY OF BANK FEES AND SERVICES.

       ``(a) Annual Survey Required.--The Board of Governors of 
     the Federal Reserve System shall obtain a sample, which is 
     representative by geographic location and size of the 
     institution, of--
       ``(1) certain retail banking services provided by insured 
     depository institutions; and
       ``(2) the fees, if any, which are imposed by such 
     institutions for providing any such service, including fees 
     imposed for not sufficient funds, deposit items returned, and 
     automated teller machine transactions.
       ``(b) Annual Report to Congress Required.--
       ``(1) Preparation.--The Board of Governors of the Federal 
     Reserve System shall prepare a report of the results of each 
     survey conducted pursuant to subsection (a).
       ``(2) Contents of the report.--Each report prepared 
     pursuant to paragraph (1) shall include--
       ``(A) a description of any discernible trend, in the Nation 
     as a whole and in each region, in the cost and availability 
     of retail banking services which delineates differences on 
     the basis of size of the institution and engagement in 
     multistate activity; and
       ``(B) a description of the correlation, if any, among the 
     following factors:
       ``(i) An increase or decrease in the amount of any deposit 
     insurance premium assessed by the Federal Deposit Insurance 
     Corporation against insured depository institutions.
       ``(ii) An increase or decrease in the amount of the fees 
     imposed by such institutions for providing retail banking 
     services.
       ``(iii) A decrease in the availability of such services.
       ``(3) Submission to congress.--The Board of Governors of 
     the Federal Reserve System shall submit an annual report to 
     the Congress not later than September 1, 1995, and not later 
     than June 1 of each subsequent year.''.
       (b) Sunset.--The requirements of subsection (a) shall not 
     apply after the end of the 7-year period beginning on the 
     date of enactment of this Act.

     SEC. 109. PROHIBITION AGAINST DEPOSIT PRODUCTION OFFICES.

       (a) Regulations.--The appropriate Federal banking agencies 
     shall prescribe uniform regulations effective June 1, 1997, 
     which prohibit any out-of-State bank from using any authority 
     to engage in interstate branching pursuant to this title, or 
     any amendment made by this title to any other provision of 
     law, primarily for the purpose of deposit production.
       (b) Guidelines for Meeting Credit Needs.--Regulations 
     issued under subsection (a) shall include guidelines to 
     ensure that interstate branches operated by an out-of-State 
     bank in a host State are reasonably helping to meet the 
     credit needs of the communities which the branches serve.
       (c) Limitation on Out-of-State Loans.--
       (1) Limitation.--Regulations issued under subsection (a) 
     shall require that, beginning no earlier than 1 year after 
     establishment or acquisition of an interstate branch or 
     branches in a host State by an out-of-State bank, if the 
     appropriate Federal banking agency for the out-of-State bank 
     determines that the bank's level of lending in the host State 
     relative to the deposits from the host State (as reasonably 
     determinable from available information including the 
     agency's sampling of the bank's loan files during an 
     examination or such data as is otherwise available) is less 
     than half the average of total loans in the host State 
     relative to total deposits from the host State (as 
     determinable from relevant sources) for all banks the home 
     State of which is such State--
       (A) the appropriate Federal banking agency for the out-of-
     State bank shall review the loan portfolio of the bank and 
     determine whether the bank is reasonably helping to meet the 
     credit needs of the communities served by the bank in the 
     host State; and
       (B) if the agency determines that the out-of-State bank is 
     not reasonably helping to meet those needs--
       (i) the agency may order that an interstate branch or 
     branches of such bank in the host State be closed unless the 
     bank provides reasonable assurances to the satisfaction of 
     the appropriate Federal banking agency that the bank has an 
     acceptable plan that will reasonably help to meet the credit 
     needs of the communities served by the bank in the host 
     State, and
       (ii) the out-of-State bank may not open a new interstate 
     branch in the host State unless the bank provides reasonable 
     assurances to the satisfaction of the appropriate Federal 
     banking agency that the bank will reasonably help to meet the 
     credit needs of the community that the new branch will serve.
       (2) Considerations.--In making a determination under 
     paragraph (1)(A), the appropriate Federal banking agency 
     shall consider--
       (A) whether the interstate branch or branches of the out-
     of-State bank were formerly part of a failed or failing 
     depository institution;
       (B) whether the interstate branch was acquired under 
     circumstances where there was a low loan-to-deposit ratio 
     because of the nature of the acquired institution's business 
     or loan portfolio;
       (C) whether the interstate branch or branches of the out-
     of-State bank have a higher concentration of commercial or 
     credit card lending, trust services, or other specialized 
     activities;
       (D) the ratings received by the out-of-State bank under the 
     Community Reinvestment Act of 1977;
       (E) economic conditions, including the level of loan 
     demand, within the communities served by the interstate 
     branch or branches of the out-of-State bank; and
       (F) the safe and sound operation and condition of the out-
     of-State bank.
       (3) Branch closing procedure--
       (A) Notice required.--Before exercising any authority under 
     paragraph (1)(B)(i), the appropriate Federal banking agency 
     shall issue to the bank a notice of the agency's intention to 
     close an interstate branch or branches and shall schedule a 
     hearing.
       (B) Hearing.--Section 8(h) of the Federal Deposit Insurance 
     Act shall apply to any proceeding brought under this 
     paragraph.
       (d) Application.--This section shall apply with respect to 
     any interstate branch established or acquired in a host State 
     pursuant to this title or any amendment made by this title to 
     any other provision of law.
       (e) Definitions.--For the purposes of this section, the 
     following definitions shall apply:
       (1) Appropriate federal banking agency, bank, state, and 
     state bank.--The terms ``appropriate Federal banking 
     agency'', ``bank'', ``State'', and ``State bank'' have the 
     same meanings as in section 3 of the Federal Deposit 
     Insurance Act.
       (2) Home state.--The term ``home State'' means--
       (A) in the case of a national bank, the State in which the 
     main office of the bank is located; and
       (B) in the case of a State bank, the State by which the 
     bank is chartered.
       (3) Host state.--The term ``host State'' means a State in 
     which a bank establishes a branch other than the home State 
     of the bank.
       (4) Interstate branch.--The term ``interstate branch'' 
     means a branch established pursuant to this title or any 
     amendment made by this title to any other provision of law.
       (5) Out-of-state bank.--The term ``out-of-State bank'' 
     means, with respect to any State, a bank the home State of 
     which is another State and, for purposes of this section, 
     includes a foreign bank, the home State of which is another 
     State.

     SEC. 110. COMMUNITY REINVESTMENT ACT EVALUATION OF BANKS WITH 
                   INTERSTATE BRANCHES.

       (a) In General.--Section 807 of the Community Reinvestment 
     Act of 1977 (12 U.S.C. 2906) is amended by adding at the end 
     the following new subsections:
       ``(d) Institutions With Interstate Branches.--
       ``(1) State-by-state evaluation.--In the case of a 
     regulated financial institution that maintains domestic 
     branches in 2 or more States, the appropriate Federal 
     financial supervisory agency shall prepare--
       ``(A) a written evaluation of the entire institution's 
     record of performance under this title, as required by 
     subsections (a), (b), and (c); and
       ``(B) for each State in which the institution maintains 1 
     or more domestic branches, a separate written evaluation of 
     the institution's record of performance within such State 
     under this title, as required by subsections (a), (b), and 
     (c).
       ``(2) Multistate metropolitan areas.--In the case of a 
     regulated financial institution that maintains domestic 
     branches in 2 or more States within a multistate metropolitan 
     area, the appropriate Federal financial supervisory agency 
     shall prepare a separate written evaluation of the 
     institution's record of performance within such metropolitan 
     area under this title, as required by subsections (a), (b), 
     and (c). If the agency prepares a written evaluation pursuant 
     to this paragraph, the scope of the written evaluation 
     required under paragraph (1)(B) shall be adjusted 
     accordingly.
       ``(3) Content of state level evaluation.--A written 
     evaluation prepared pursuant to paragraph (1)(B) shall--
       ``(A) present the information required by subparagraphs (A) 
     and (B) of subsection (b)(1) separately for each metropolitan 
     area in which the institution maintains 1 or more domestic 
     branch offices and separately for the remainder of the 
     nonmetropolitan area of the State if the institution 
     maintains 1 or more domestic branch offices in such 
     nonmetropolitan area; and
       ``(B) describe how the Federal financial supervisory agency 
     has performed the examination of the institution, including a 
     list of the individual branches examined.
       ``(e) Definitions.--For purposes of this section the 
     following definitions shall apply:
       ``(1) Domestic branch.--The term `domestic branch' means 
     any branch office or other facility of a regulated financial 
     institution that accepts deposits, located in any State.
       ``(2) Metropolitan area.--The term `metropolitan area' 
     means any primary metropolitan statistical area, metropolitan 
     statistical area, or consolidated metropolitan statistical 
     area, as defined by the Director of the Office of Management 
     and Budget, with a population of 250,000 or more, and any 
     other area designated as such by the appropriate Federal 
     financial supervisory agency.
       ``(3) State.--The term `State' has the same meaning as in 
     section 3 of the Federal Deposit Insurance Act.''.
       (b) Separate Presentation.--Section 807(b)(1) of the 
     Community Reinvestment Act of 1977 (12 U.S.C. 2906(b)(1)) is 
     amended--
       (1) by redesignating subparagraphs (A) through (C) as 
     clauses (i) through (iii), respectively;
       (2) by striking ``The public'' and inserting the following:
       ``(A) Contents of written evaluation.--The public''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) Metropolitan area distinctions.--The information 
     required by clauses (i) and (ii) of subparagraph (A) shall be 
     presented separately for each metropolitan area in which a 
     regulated depository institution maintains one or more 
     domestic branch offices.''.

     SEC. 111. RESTATEMENT OF EXISTING LAW.

       No provision of this title and no amendment made by this 
     title to any other provision of law shall be construed as 
     affecting in any way--
       (1) the authority of any State or political subdivision of 
     any State to adopt, apply, or administer any tax or method of 
     taxation to any bank, bank holding company, or foreign bank, 
     or any affiliate of any such bank, bank holding company, or 
     foreign bank, to the extent that such tax or tax method is 
     otherwise permissible by or under the Constitution of the 
     United States or other Federal law;
       (2) the right of any State, or any political subdivision of 
     any State, to impose or maintain a nondiscriminatory 
     franchise tax or other nonproperty tax instead of a franchise 
     tax in accordance with section 3124 of title 31, United 
     States Code; or
       (3) the applicability of section 5197 of the Revised 
     Statutes or section 27 of the Federal Deposit Insurance Act.

     SEC. 112. GAO REPORT ON DATA COLLECTION UNDER INTERSTATE 
                   BRANCHING.

       (a) In General.--The Comptroller General of the United 
     States shall submit to the Congress, not later than 9 months 
     after the date of enactment of this Act, a report that--
       (1) examines statutory and regulatory requirements for 
     insured depository institutions to collect and report deposit 
     and lending data; and
       (2) determines what modifications to such requirements are 
     needed, so that the implementation of the interstate 
     branching provisions contained in this title will result in 
     no material loss of information important to regulatory or 
     congressional oversight of insured depository institutions.
       (b) Consultation.--The Comptroller General, in preparing 
     the report required by this section, shall consult with 
     individuals representing the appropriate Federal banking 
     agencies, insured depository institutions, consumers, 
     community groups, and other interested parties.
       (c) Definitions.--For purposes of this section, the terms 
     ``appropriate Federal banking agency'' and ``insured 
     depository institution'' have the same meanings as in section 
     3 of the Federal Deposit Insurance Act.

     SEC. 113. MAXIMUM INTEREST RATE ON CERTAIN FMHA LOANS.

       (a) In General.--Section 307(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1927(a)) is amended--
       (1) in paragraph (3)(A), by striking ``Except'' and 
     inserting ``Notwithstanding the provisions of the 
     constitution or laws of any State limiting the rate or amount 
     of interest that may be charged, taken, received, or 
     reserved, except''; and
       (2) in paragraph (5)--
       (A) by striking ``(5) The'' and inserting ``(5)(A) Except 
     as provided in subparagraph (B), the''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) In the case of a loan made under section 310B as a 
     guaranteed loan, subparagraph (A) shall apply notwithstanding 
     the provisions of the constitution or laws of any State 
     limiting the rate or amount of interest that may be charged, 
     taken, received, or reserved.''.
       (b) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by subsection (a) shall apply to a 
     loan made, insured, or guaranteed under the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1921 et seq.) in a State 
     on or after the date of enactment of this Act.
       (2) State option.--Except as provided in paragraph (3), the 
     amendments made by subsection (a) shall not apply to a loan 
     made, insured, or guaranteed under the Consolidated Farm and 
     Rural Development Act in a State after the date (that occurs 
     during the 3-year period beginning on the date of enactment 
     of this Act) on which the State adopts a law or certifies 
     that the voters of the State have voted in favor of a 
     provision of the constitution or law of the State that states 
     that the State does not want the amendments made by 
     subsection (a) to apply with respect to loans made, insured, 
     or guaranteed under such Act in the State.
       (3) Transitional period.--In any case in which a State 
     takes an action described in paragraph (2), the amendments 
     made by subsection (a) shall continue to apply to a loan 
     made, insured, or guaranteed under the Consolidated Farm and 
     Rural Development Act in the State after the date the action 
     was taken pursuant to a commitment for the loan that was 
     entered into during the period beginning on the date of 
     enactment of this Act, and ending on the date on which the 
     State takes the action.

     SEC. 114. NOTICE REQUIREMENTS FOR BANKING AGENCY DECISIONS 
                   PREEMPTING STATE LAW.

       Chapter 4 of title LXII of the Revised Statutes (12 U.S.C. 
     21 et seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 5244. INTERPRETATIONS CONCERNING PREEMPTION OF CERTAIN 
                   STATE LAWS.

       ``(a) Notice and Opportunity for Comment Required.--Before 
     issuing any opinion letter or interpretive rule, in response 
     to a request or upon the agency's own motion, that concludes 
     that Federal law preempts the application to a national bank 
     of any State law regarding community reinvestment, consumer 
     protection, fair lending, or the establishment of intrastate 
     branches, or before making a determination under section 
     5155(f)(1)(A)(ii) of the Revised Statutes, the appropriate 
     Federal banking agency (as defined in section 3 of the 
     Federal Deposit Insurance Act) shall--
       ``(1) publish in the Federal Register notice of the 
     preemption or discrimination issue that the agency is 
     considering (including a description of each State law at 
     issue);
       ``(2) give interested parties not less than 30 days in 
     which to submit written comments; and
       ``(3) in developing the final opinion letter or 
     interpretive rule issued by the agency, or making any 
     determination under section 5155(f)(1)(A)(ii) of the Revised 
     Statutes, consider any comments received.
       ``(b) Publication Required.--The appropriate Federal 
     banking agency shall publish in the Federal Register--
       ``(1) any final opinion letter or interpretive rule 
     concluding that Federal law preempts the application of any 
     State law regarding community reinvestment, consumer 
     protection, fair lending, or establishment of intrastate 
     branches to a national bank; and
       ``(2) any determination under section 5155(f)(1)(A)(ii) of 
     the Revised Statutes.
       ``(c) Exceptions.--
       ``(1) No new issue or significant basis.--This section 
     shall not apply with respect to any opinion letter or 
     interpretive rule that--
       ``(A) raises issues of Federal preemption of State law that 
     are essentially identical to those previously resolved by the 
     courts or on which the agency has previously issued an 
     opinion letter or interpretive rule; or
       ``(B) responds to a request that contains no significant 
     legal basis on which to make a preemption determination.
       ``(2) Judicial, legislative, or intragovernmental 
     materials.--This section shall not apply with respect to 
     materials prepared for use in judicial proceedings or 
     submission to Congress or a Member of Congress, or for 
     intragovernmental use.
       ``(3) Emergency.--The appropriate Federal banking agency 
     may make exceptions to subsection (a) if--
       ``(A) the agency determines in writing that the exception 
     is necessary to avoid a serious and imminent threat to the 
     safety and soundness of any national bank; or
       ``(B) the opinion letter or interpretive rule is issued in 
     connection with--
       ``(i) an acquisition of 1 or more banks in default or in 
     danger of default (as such terms are defined in section 3 of 
     the Federal Deposit Insurance Act); or
       ``(ii) an acquisition with respect to which the Federal 
     Deposit Insurance Corporation provides assistance under 
     section 13(c) of the Federal Deposit Insurance Act.''.

     SEC. 115. MORATORIUM ON EXAMINATION FEES UNDER THE 
                   INTERNATIONAL BANKING ACT OF 1978.

       (a) Branches, Agencies, and Affiliates.--Section 7(c)(1)(D) 
     of the International Banking Act of 1978 shall not apply with 
     respect to any examination under section 7(c)(1)(A) of such 
     Act which begins before or during the 3-year period beginning 
     on July 25, 1994.
       (b) Representative Offices.--The provision of section 10(c) 
     of the International Banking Act of 1978 relating to the cost 
     of examinations under such section shall not apply with 
     respect to any examination under such section which begins 
     before or during the 3-year period beginning on July 25, 
     1994.
                      TITLE II--GENERAL PROVISIONS

     SEC. 201. AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT AND 
                   FEDERAL HOME LOAN BANK ACT.

       (a) Federal Deposit Insurance Act.--Section 11(d)(14) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(14)) is 
     amended by adding at the end the following new subparagraph:
       ``(C) Revival of expired state causes of action.--
       ``(i) In general.--In the case of any tort claim described 
     in clause (ii) for which the statute of limitation applicable 
     under State law with respect to such claim has expired not 
     more than 5 years before the appointment of the Corporation 
     as conservator or receiver, the Corporation may bring an 
     action as conservator or receiver on such claim without 
     regard to the expiration of the statute of limitation 
     applicable under State law.
       ``(ii) Claims described.--A tort claim referred to in 
     clause (i) is a claim arising from fraud, intentional 
     misconduct resulting in unjust enrichment, or intentional 
     misconduct resulting in substantial loss to the 
     institution.''.
       (b) Federal Home Loan Bank Act.--Section 21A(b)(14) of the 
     Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(14)) is 
     amended by adding at the end the following new subparagraph:
       ``(E) Revival of expired state causes of action.--In the 
     case of any tort claim described in subparagraph (A)(ii) for 
     which the statute of limitation applicable under State law 
     with respect to such claim has expired not more than 5 years 
     before the appointment of the Corporation as conservator or 
     receiver, the Corporation may bring an action as conservator 
     or receiver on such claim without regard to the expiration of 
     the statute of limitation applicable under State law.''.

     SEC. 202. SENSE OF THE SENATE CONCERNING MULTILATERAL EXPORT 
                   CONTROLS.

       (a) Findings.--The Senate finds that--
       (1) the United States and its allies have agreed that as of 
     March 31, 1994, the Coordinating Committee (hereafter 
     referred to as ``COCOM''), the multilateral body that 
     controlled strategic exports to the former Soviet Union and 
     other Communist States, ceased to exist;
       (2) no successor has yet been established to replace the 
     COCOM;
       (3) threats to United States security are posed by rogue 
     regimes that support terrorism as a matter of national 
     policy;
       (4) a critical element of the United States proposal for a 
     successor to COCOM is that supplier nations agree on a list 
     of militarily critical products and technologies that would 
     be denied to a handful of rogue regimes;
       (5) some allies of the United States oppose this principle 
     and instead propose that such controls be left to ``national 
     discretion'', effectively replacing multilateral export 
     controls with a loose collection of unilateral export control 
     policies which would be adverse for United States security 
     and economic interests;
       (6) multilateral controls are needed to thwart efforts of 
     Iran, Iraq, North Korea, Libya, and other rogue regimes, to 
     acquire arms and sensitive dual-use goods and technologies 
     that could contribute to their efforts to build weapons of 
     mass destruction; and
       (7) the United States would be forced to make the difficult 
     choice of choosing between unilateral export controls under 
     the Export Administration Act of 1979, which would put 
     American companies at a competitive disadvantage worldwide, 
     or allowing exports that could seriously harm the national 
     security interests of the United States.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the President should work to achieve a clearly defined 
     and enforceable agreement with allies of the United States 
     which establishes a multilateral export control system for 
     the proliferation of products and technologies to rogue 
     regimes that would jeopardize the national security of the 
     United States; and
       (2) the President should persuade allies of the United 
     States to promote mutual security interests by preventing 
     rogue regimes from obtaining militarily critical products and 
     technologies.

     SEC. 203. AMENDMENTS RELATING TO SILVER MEDALS FOR PERSIAN 
                   GULF VETERANS.

       Title III of Public law 102-281 (31 U.S.C. 5111 note) is 
     amended--
       (1) in section 303(b), by striking ``entitlement'' and 
     inserting ``enactment''; and
       (2) in section 307 by striking subsection (b) and inserting 
     the following:
       ``(b) No Expenditures in Advance of Receipt of Funds.--The 
     Secretary of the Treasury shall begin minting and issuing the 
     medals described in section 302 whenever there are any funds 
     available to cover the cost of minting and issuing any such 
     medals from amounts received by the Secretary under section 
     305 and donations by private persons, and shall continue 
     minting and issuing such medals, subject to the availability 
     of funds to cover the costs, until all of the medals 
     authorized have been issued.''.

     SEC. 204. 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) Period for issuance.--The Secretary shall issue coins 
     minted under this section during the period beginning on 
     January 15, 1995, and ending on 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.
       (5) International sales.--The Secretary, in cooperation 
     with the 1995 Special Olympics World Games Organizing 
     Committee, shall develop an international marketing program 
     to promote and sell coins outside of the United States.
       (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.

     SEC. 205. NATIONAL COMMUNITY SERVICE COMMEMORATIVE COINS.

       (a) Coin Specifications.--
       (1) $1 Silver coins.--The Secretary of the Treasury 
     (hereafter in this section referred to as the ``Secretary'') 
     shall mint and issue not more than 500,000 $1 coins to 
     commemorate students who volunteer to perform community 
     service, which shall--
       (A) weigh 26.73 grams;
       (B) have a diameter of 1.500 inches; and
       (C) contain 90 percent silver and 10 percent copper.
       (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 5134 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 Minerals Stock 
     Piling Act.
       (c) Design of Coins.--
       (1) Design requirements.--
       (A) In general.--The design of the coins minted under this 
     section shall be emblematic of community services provided by 
     student volunteers.
       (B) Designation and inscriptions.--On each coin minted 
     under this section there shall be--
       (i) a designation of the value of the coin;
       (ii) an inscription of the year ``1996''; and
       (iii) inscriptions of the words ``Liberty'', ``In God We 
     Trust'', ``United States of America'', and ``E Pluribus 
     Unum''.
       (2) Selection.--The design for the coins authorized by this 
     section shall be--
       (A) selected by the Secretary after consultation with the 
     National Community Service Trust and the Commission of Fine 
     Arts; and
       (B) reviewed by the Citizens Commemorative Coin Advisory 
     Committee.
       (d) Issuance of Coins.--
       (1) Quality of coins.--Coins minted under this section 
     shall be issued in uncirculated and proof qualities.
       (2) Mint facility.--Only 1 facility of the United States 
     Mint may be used to strike any particular quality of the 
     coins minted under this section.
       (3) Period for issuance.--The Secretary shall issue coins 
     minted under this section for a period of not less than 6 
     months and not more than 12 months, beginning no later than 
     September 1, 1996.
       (e) Sale of Coins.--
       (1) Sale price.--The coins issued under this section shall 
     be sold by the Secretary at a price equal to the sum of--
       (A) the face value of the coins;
       (B) the surcharge provided in paragraph (4) with respect to 
     such coins; and
       (C) the cost of designing and issuing the coins (including 
     labor, materials, dies, use of machinery, overhead expenses, 
     marketing, and shipping).
       (2) Bulk sales.--The Secretary shall make bulk sales of the 
     coins issued under this section available at a reasonable 
     discount.
       (3) Prepaid orders.--
       (A) In general.--The Secretary shall accept prepaid orders 
     for the coins minted under this section before the issuance 
     of such coins.
       (B) Discount.--Sale prices with respect to prepaid orders 
     under subparagraph (A) shall be at a reasonable discount.
       (4) Surcharges.--All sales shall include a surcharge of $10 
     per coin.
       (f) General Waiver of Procurement Regulations.--
       (1) In general.--Except as provided in paragraph (2), no 
     provision of law governing procurement or public contracts 
     shall be applicable to the procurement of goods and services 
     necessary for carrying out the provisions of this section.
       (2) Equal employment opportunity.--Paragraph (1) shall not 
     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.--
       (1) In general.--All surcharges received by the Secretary 
     from the sale of coins issued under this section shall be 
     promptly paid by the Secretary to the National Community 
     Service Trust for the purpose of funding innovative community 
     service programs at American universities, including the 
     service, research, and teaching activities of faculty and 
     students involved in such programs.
       (2) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the National Community Service 
     Trust as may be related to the expenditures of amounts paid 
     under paragraph (1).
       (h) Financial Assurances.--
       (1) No net cost to the government.--The Secretary shall 
     take such actions as may be necessary to ensure that minting 
     and issuing coins under this section will not result in any 
     net cost to the United States Government.
       (2) Payment for coins.--A coin shall not be issued under 
     this section unless the Secretary has received--
       (A) full payment for the coin;
       (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.

     SEC. 206. ROBERT F. KENNEDY MEMORIAL COMMEMORATIVE COINS.

       (a) Coin Specifications.--
       (1) $1 silver coins.--The Secretary of the Treasury 
     (hereafter in this section referred to as the ``Secretary'') 
     shall mint and issue not more than 500,000 $1 coins to 
     commemorate the life and work of Robert F. Kennedy, which 
     shall--
       (A) weigh 26.73 grams;
       (B) have a diameter of 1.500 inches; and
       (C) contain 90 percent silver and 10 percent copper.
       (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 5134 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 Minerals Stock 
     Piling Act.
       (c) Design of Coins.--
       (1) Design requirements.--
       (A) In general.--The design of the coins minted under this 
     section shall be emblematic of the life and work of Robert F. 
     Kennedy.
       (B) Designation and inscriptions.--On each coin minted 
     under this section there shall be--
       (i) a designation of the value of the coin;
       (ii) an inscription of the year ``1998''; and
       (iii) inscriptions of the words ``Liberty'', ``In God We 
     Trust'', ``United States of America'', and ``E Pluribus 
     Unum''.
       (2) Selection.--The design for the coins authorized by this 
     section shall be--
       (A) selected by the Secretary after consultation with the 
     Robert F. Kennedy Memorial and the Commission of Fine Arts; 
     and
       (B) reviewed by the Citizens Commemorative Coin Advisory 
     Committee.
       (d) Issuance of Coins.--
       (1) Quality of coins.--Coins minted under this section 
     shall be issued in uncirculated and proof qualities.
       (2) Mint facility.--Only 1 facility of the United States 
     Mint may be used to strike any particular quality of the 
     coins minted under this section.
       (3) Period for issuance.--The Secretary shall issue coins 
     minted under this section for a period of not less than 6 
     months and not more than 12 months, beginning no later than 
     January 1, 1998.
       (e) Sale of Coins.--
       (1) Sale price.--The coins issued under this section shall 
     be sold by the Secretary at a price equal to the sum of--
       (A) the face value of the coins;
       (B) the surcharge provided in paragraph (4) with respect to 
     such coins; and
       (C) the cost of designing and issuing the coins (including 
     labor, materials, dies, use of machinery, overhead expenses, 
     marketing, and shipping).
       (2) Bulk sales.--The Secretary shall make bulk sales of the 
     coins issued under this section available at a reasonable 
     discount.
       (3) Prepaid orders.--
       (A) In general.--The Secretary shall accept prepaid orders 
     for the coins minted under this section before the issuance 
     of such coins.
       (B) Discount.--Sale prices with respect to prepaid orders 
     under subparagraph (A) shall be at a reasonable discount.
       (4) Surcharges.--All sales shall include a surcharge of $10 
     per coin.
       (f) General Waiver of Procurement Regulations.--
       (1) In general.--Except as provided in paragraph (2), no 
     provision of law governing procurement or public contracts 
     shall be applicable to the procurement of goods and services 
     necessary for carrying out the provisions of this section.
       (2) Equal employment opportunity.--Paragraph (1) shall not 
     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.--
       (1) In general.--All surcharges received by the Secretary 
     from the sale of coins issued under this section shall be 
     promptly paid by the Secretary to the Robert F. Kennedy 
     Memorial for the purpose of improving the endowment of the 
     Robert F. Kennedy Memorial.
       (2) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the Robert F. Kennedy Memorial 
     as may be related to the expenditures of amounts paid under 
     paragraph (1).
       (h) Financial Assurances.--
       (1) No net cost to the government.--The Secretary shall 
     take such actions as may be necessary to ensure that minting 
     and issuing coins under this section will not result in any 
     net cost to the United States Government.
       (2) Payment for coins.--A coin shall not be issued under 
     this section unless the Secretary has received--
       (A) full payment for the coin;
       (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.

     SEC. 207. UNITED STATES MILITARY ACADEMY BICENTENNIAL 
                   COMMEMORATIVE COINS.

       (a) Coin Specifications.--
       (1) One dollar silver coins.--
       (A) Issuance.--The Secretary shall issue not more than 
     500,000 $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 $1 coins shall be emblematic 
     of the United States Military Academy and its motto ``Duty, 
     Honor, Country''. On each such coin there shall be a 
     designation of the value of the coin, an inscription of the 
     year ``2002'', 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.
       (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 of the coins minted 
     under this section shall be selected by the Secretary after 
     consultation with the Commission of Fine Arts and the 
     Bicentennial Steering Group, Association of Graduates, United 
     States Military Academy. As required by section 5135 of title 
     31, United States Code, the designs shall also be reviewed by 
     the Citizens Commemorative Coin Advisory Committee.
       (d) Issuance of the Coins.--
       (1) Quality and mint facility.--The coins authorized under 
     this section may be issued in uncirculated and proof 
     qualities and shall be struck at the United States Bullion 
     Depository at West Point.
       (2) Period for issuance.--The Secretary shall issue coins 
     minted under this section during the period beginning on 
     March 16, 2002, and ending on March 16, 2003.
       (3) Sunset provision.--No coins shall be minted under this 
     section after December 31, 2002.
       (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 
     available at a reasonable discount.
       (3) Prepaid orders.--The Secretary shall accept prepaid 
     orders for the coins prior to the issuance of such coins. 
     Sales under this paragraph 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 and 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 Association of Graduates, United States Military Academy 
     to assist the Association of Graduates' efforts to provide 
     direct support to the academic, military, physical, moral, 
     and ethical development programs of the Corps of Cadets, 
     United States Military Academy.
       (h) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the Association of Graduates, 
     United States Military Academy as may be related to the 
     expenditure of amounts paid under subsection (g).
       (i) Numismatic Public Enterprise Fund.--The coins issued 
     under this section are subject to the provisions of section 
     5134 of title 31, United States Code, relating to the 
     Numismatic Public Enterprise Fund.
       (j) 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.

     SEC. 208. UNITED STATES BOTANIC GARDEN COMMEMORATIVE COINS.

       (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 mint and 
     issue not more than 500,000 $1 coins, which shall weigh 26.73 
     grams, have a diameter of 1.500 inches, and contain 90 
     percent silver and 10 percent copper.
       (B) Design.--The design of the coins issued under this 
     section shall be a rose, the national floral emblem, and a 
     frontal view of the French facade of the United States 
     Botanic Garden. On each coin there shall be a designation of 
     the value of the coin, an inscription of the years ``1820-
     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 5134 of 
     title 31, United States Code, all coins minted under this 
     section shall be considered to be numismatic items.
       (b) Source 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 minted 
     under this section shall be--
       (1) selected by the Secretary after consultation with the 
     National Fund for the United States Botanic Garden and the 
     Commission of Fine Arts; and
       (2) reviewed by the Citizens Commemorative Coin Advisory 
     Committee.
       (d) Issuance of Coins.--
       (1) Quality of coins.--Coins minted 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) Period of issuance.--The Secretary may issue coins 
     minted under this section during the period beginning on 
     January 1, 1997, and ending on December 31, 1997.
       (e) Sale of Coins.--
       (1) Sale price.--The coins authorized 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 the coins (including labor, materials, 
     dies, use of machinery, overhead expenses, marketing, and 
     shipping).
       (2) Bulk sales.--The Secretary shall make bulk sales 
     available 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 paragraph 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.--
       (1) In general.--Except as provided in paragraph (2), no 
     provision of law governing procurement or public contracts 
     shall be applicable to the procurement of goods and services 
     necessary for carrying out the provisions of this section.
       (2) Equal employment opportunity.--Paragraph (1) shall not 
     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.--All surcharges received by 
     the Secretary from the sale of coins issued under this 
     section shall be promptly paid by the Secretary to the 
     National Fund for the United States Botanic Garden.
       (h) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the National Fund for the United 
     States Botanic Garden as may be related to the expenditures 
     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.

     SEC. 209. MOUNT RUSHMORE COMMEMORATIVE COINS.

       (a) Distribution of Surcharges.--Section 8 of the Mount 
     Rushmore Commemorative Coin Act (104 Stat. 314; 31 U.S.C. 
     5112 note) is amended by striking paragraphs (1) and (2) and 
     inserting the following:
       ``(1) the first $18,750,000 shall be paid during fiscal 
     year 1994 by the Secretary to the Society to assist the 
     Society's efforts to improve, enlarge, and renovate the Mount 
     Rushmore National Memorial; and
       ``(2) the remainder shall be returned to the Federal 
     Treasury for purposes of reducing the national debt.''.
       (b) Retroactive Effect.--If, prior to the enactment of this 
     Act, any amount of surcharges have been received by the 
     Secretary of the Treasury and paid into the United States 
     Treasury pursuant to section 8(1) of the Mount Rushmore 
     Commemorative Coin Act, as in effect prior to the enactment 
     of this Act, that amount shall be paid out of the Treasury to 
     the extent necessary to comply with section 8(1) of the Mount 
     Rushmore Commemorative Coin Act, as in effect after the 
     enactment of this Act. Amounts paid pursuant to the preceding 
     sentence shall be out of funds not otherwise appropriated.
       (c) Numismatic Operating Profits.--Nothing in this section 
     shall be construed to affect the Secretary of the Treasury's 
     right to derive operating profits from numismatic programs 
     for use in supporting the United States Mint's numismatic 
     operations and programs or to allow the distribution of 
     operating profits from the Numismatic Public Enterprise Fund 
     to a recipient organization under any numismatic program.

     SEC. 210. STUDY AND REPORT ON THE UNITED STATES FINANCIAL 
                   SERVICES SYSTEM.

       (a) Study.--
       (1) In general.--The Secretary of the Treasury (hereafter 
     in this section referred to as the ``Secretary'') shall, 
     after consultation with the Advisory Commission on Financial 
     Services established under subsection (b), and consultation 
     in accordance with paragraph (3), conduct a study of matters 
     relating to the strengths and weaknesses of the United States 
     financial services system in meeting the needs of the 
     system's users, including the needs of--
       (A) individual consumers and households;
       (B) communities;
       (C) agriculture;
       (D) small-, medium-, and large-sized businesses;
       (E) governmental and nonprofit entities; and
       (F) exporters and other users of international financial 
     services.
       (2) Matters studied.--The study required under paragraph 
     (1) shall include consideration of--
       (A) the changes underway in the national and international 
     economies and the financial services industry, and how those 
     changes affect the financial services system's ability to 
     efficiently meet the needs of the national economy and the 
     system's users during the next 10 years and beyond; and
       (B) the adequacy of existing statutes and regulations, and 
     the existing regulatory structure, to meet the needs of the 
     financial services system's users effectively, efficiently, 
     and without unfair, anticompetitive, or discriminatory 
     practices.
       (3) Consultation.--Consultation in accordance with this 
     paragraph means consultation with--
       (A) the Board of Governors of the Federal Reserve System;
       (B) the Commodity Futures Trading Commission;
       (C) the Comptroller of the Currency;
       (D) the Director of the Office of Thrift Supervision;
       (E) the Federal Deposit Insurance Corporation;
       (F) the Secretary of the Department of Housing and Urban 
     Development;
       (G) the Securities and Exchange Commission;
       (H) the Director of the Congressional Budget Office; and
       (I) the Comptroller General of the United States.
       (b) Advisory Commission on Financial Services.--
       (1) Establishment.--There is established the Advisory 
     Commission on Financial Services (hereafter in this section 
     referred to as the ``Advisory Commission'').
       (2) Membership of commission.--The Advisory Commission--
       (A) shall consist of not less than 9 nor more than 14 
     members appointed by the Secretary from among individuals--
       (i) who are--

       (I) users of the financial services system; or
       (II) experts in finance or on the financial services 
     system; and

       (ii) who are not employees of the Federal Government; and
       (B) shall include representatives of business, agriculture, 
     and consumers.
       (3) Chairperson.--The Secretary or the Secretary's designee 
     shall serve as Chairperson of the Advisory Commission.
       (4) Travel expenses.--Members of the Advisory Commission 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in performing services for the Advisory Commission.
       (5) Termination.--The Advisory Commission shall terminate 
     30 days after the date of submission of the report required 
     under subsection (d).
       (c) Recommendations.--Based on the results of the study 
     conducted under subsection (a), the Secretary shall develop 
     such recommendations as may be appropriate for changes in 
     statutes, regulations, and policies to improve the operation 
     of the financial services system, including changes to 
     better--
       (1) meet the needs of, and assure access to the system for, 
     current and potential users;
       (2) promote economic growth;
       (3) protect consumers;
       (4) promote competition and efficiency;
       (5) avoid risk to the taxpayers;
       (6) control systemic risk; and
       (7) eliminate discrimination.
       (d) Report.--Not later than 15 months after the date of 
     enactment of this Act, the Secretary shall submit to the 
     President pro tempore of the Senate and the Speaker of the 
     House of Representatives a report describing the study 
     conducted under subsection (a) and any recommendations 
     developed under subsection (c).

     SEC. 211. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.

       (a) In General.--Section 5146 of the Revised Statutes (12 
     U.S.C. 72) is amended in the 1st sentence, by striking ``two 
     thirds'' and inserting ``a majority''.
       (b) Provision Repeal.--Effective on the date of enactment 
     of the Riegle Community Development and Regulatory 
     Improvement Act of 1994, this section and the amendment made 
     by this section are repealed.

       And the Senate agree to the same.
     From the Committee on Banking, Finance and Urban Affairs, for 
     consideration of the House bill, and the Senate amendment, 
     and modifications committed to conference:
     Henry Gonzalez,
     Steve Neal,
     John J. LaFalce,
     Bruce F. Vento,
     Charles Schumer,
     Barney Frank,
     Paul E. Kanjorski,
     Joseph Kennedy,
     James Leach,
     Bill McCollum,
     Marge Roukema,
     Doug Bereuter,
     Tom Ridge,
     As additional conferees from the Committee on Agriculture, 
     for consideration of sec. 109 of the Senate amendment, and 
     modifications committed to conference:
     E de la Garza,
     Charlie Stenholm,
     Harold L. Volkmer,
     Timothy J. Penny,
     Tim Johnson,
     Pat Roberts,
     Larry Combest,
     Wayne Allard,
     As additional conferee from the Committee on Foreign Affairs, 
     for consideration of sec. 402 of the Senate amendment, and 
     modifications committed to conference:
     Ben Gilman,
     As additional conferees from the Committee on the Judiciary, 
     for consideration of secs. 101-03 of the House bill, and 
     title II and secs. 102-03 of the Senate amendment, and 
     modifications committed to conference:
     R.L. Mazzoli,
     Bill Hughes,
     Dan Glickman,
     Rick Boucher,
     John Bryant,
     Hamilton Fish,
     Chas T. Canady,
     Bob Goodlatte,
                                Managers on the Part of the House.

     Don Riegle,
     Paul Sarbanes,
     Christopher Dodd,
     Jim Sasser,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3841) to amend the 
     Bank Holding Company Act of 1956, the Revised Statutes of the 
     United States, and the Federal Deposit Insurance Act to 
     provide for interstate banking and branching, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:

                      SUMMARY OF MAJOR PROVISIONS

               Title I--Interstate Banking and Branching


                           interstate banking

       The legislation permits bank holding companies to acquire 
     banks in any State one year after enactment of the 
     legislation. State laws which require the acquiring company 
     to acquire a bank that has been in existence for a specified 
     minimum period of time (not to exceed five years) are 
     preserved. Any State law which requires a bank to be acquired 
     to be in existence for more than five years applies as if it 
     requires that the bank being acquired be five years old.
       Section 3(d)(1)(D) of the Bank Holding Company Act, as 
     amended by section 101, protects the applicability of a State 
     law that makes the acquisition of a bank contingent upon a 
     requirement that a portion of the bank's assets be available 
     to a State-sponsored housing entity established under State 
     law, under the conditions that the State law is not 
     discriminatory, that the State law was in effect as of the 
     date of enactment of this Act and that compliance with the 
     State law would not result in an unacceptable risk to the 
     deposit insurance fund and would not place the bank in an 
     unsafe or unsound condition.
       The Federal Reserve Board may not approve an interstate 
     acquisition if, as a result of the acquisition, the bank 
     holding company would control more than 10 percent of the 
     total amount of deposits of insured depository institutions 
     in the United States or 30 percent or more of the deposits in 
     the home State of the bank to be acquired. Notwithstanding 
     the 30 percent limit, the Board could approve such a 
     transaction if the home State waives the 30 percent limit 
     either by statute, regulation, or order of the appropriate 
     State official based on standards that do not have the effect 
     of discriminating against out-of-State institutions.
       The above concentration limits do not apply to initial 
     entry into a State by a bank holding company. If, however, a 
     State has a deposit concentration cap which applies in a 
     nondiscriminatory manner to both in-State and out-of-State 
     bank holding companies making initial entry acquisitions, 
     then nothing in the legislation affects the State's authority 
     to impose such deposit cap.
     Community Reinvestment Laws
       The Board shall continue to comply with its 
     responsibilities under the Community Reinvestment Act of 1977 
     with respect to applications under section 3(d) of the Bank 
     Holding Company Act of 1956. Currently the Board reviews 
     applications under section 3(d) in accordance with existing 
     regulations (such as Regulations Y and BB) and practices, and 
     the conferees intend that nothing in this bill will alter or 
     affect such regulations and practices as established by the 
     Board.
       In acting on an application under section 3(d), the Board 
     shall also consider the applicant's record of compliance with 
     applicable state community reinvestment laws.
     Applicability of Antitrust Laws
       The title provides that no provision of the antitrust laws 
     is to be construed as being affected by the interstate 
     banking amendments to the Bank Holding Company Act, including 
     the Act's provisions on concentration limits. The 
     applicability, if any, of State antitrust laws is likewise 
     preserved. Nothing in this provision is intended to affect or 
     expand the existing applicability of State antitrust laws, 
     under current statutory or case law, to interstate 
     acquisitions.


                        STATE TAXATION AUTHORITY

       Section 101(b) amends the Bank Holding Company Act of 1956 
     to provide that nothing in that Act shall be construed as 
     affecting the authority of any State or political subdivision 
     to adopt, apply or administer any tax or method of taxation 
     to any bank, bank holding company or foreign bank, or their 
     affiliates, to the extent that such tax or tax method is 
     otherwise permissible under the Constitution or other Federal 
     law. This is intended to clarify that it is not the 
     Conferees' intent to overturn existing State tax law 
     pertaining to distinct legal entities within a corporate 
     structure. The provision recognizes the existence of 
     corporate affiliates and reaffirms that States may segregate 
     the separately incorporated entities within a bank or bank 
     holding company for state taxation purposes, to the extent 
     permissible under the Constitution or other Federal law.
       Similar amendments are made to section 44 of the Federal 
     Deposit Insurance Act and to Title I.


                       AFFILIATED BANKS AS AGENTS

       The Conferees accepted a modified version of a provision in 
     the House bill permitting certain affiliated depository 
     institutions to act as agents for each other for purposes of 
     receiving deposits, renewing time deposits, closing loans, 
     servicing loans and receiving payments on loans and other 
     obligations for other affiliated depository institutions, 
     with several amendments.
       The modified provision permits bank subsidiaries, rather 
     than depository institution subsidiaries, of bank holding 
     companies to act as agents for depository institution 
     affiliates. Subject to certain conditions, insured savings 
     associations which were affiliated with banks as of July 1, 
     1994, may act as agents for such banks under this provision.
       As used in this provision, the term ``receive deposits'' 
     means the taking of deposits to be credited to an existing 
     account and is not meant to include the opening or 
     origination of new deposit accounts at an affiliated 
     institution by the agent institution.
       The Conferees deleted the authority in the House bill for 
     affiliated depository institutions to disburse the proceeds 
     of loans for other affiliated depository institutions and 
     substituted authority to service loans. The Conferees intend 
     that, under this authority to service loans, agent banks may 
     perform ministerial functions for the principal bank making a 
     loan. Those ministerial functions include such activities as 
     providing loan applications, assembling documents, providing 
     a location for returning documents necessary for making the 
     loan, providing loan account information (such as outstanding 
     loan balances), and receiving payments. It does not include 
     such loan functions as evaluating applications or disbursing 
     loan funds. The term ``close loans'' does not include the 
     making of a decision to extend credit or the extension of 
     credit.
       The Conferees also intend that the provision permit 
     affiliated banks to act as agents for one another regardless 
     of whether the institutions are located in the same or 
     different states.
       Under section 18(r)(3) of the Federal Deposit Insurance Act 
     (as added by section 101(d) of this title), a bank may not 
     conduct any activity as an agent that such bank is prohibited 
     from conducting as principal under applicable Federal or 
     State law. Prohibited activities under this provision include 
     activities by a bank acting as agent that would be prohibited 
     to the bank acting as principal under the applicable consumer 
     protection, powers and other laws of the State where the bank 
     is situated. The Conferees intend that the limitation on 
     acting as agent under section 18(r)(3) shall also be applied 
     to all United States offices of foreign banks covered under 
     the definition of bank in the Act, when acting as agent for a 
     depository institution affiliate. Agency relationships may be 
     used to promote operational efficiencies, but they may not be 
     used to evade applicable consumer protection, powers, and 
     other laws of the State where the agent institution is 
     situated.
       The Conferees also intend to clarify, through the addition 
     of a savings clause, that this section does not affect the 
     authority of a depository institution to be an agent for a 
     depository institution under any other provision of law, nor 
     does it affect a determination under any other provision of 
     law whether the agent should be considered to be a branch of 
     the depository institution. The Conferees do not intend that 
     new subsection 18(r) of the Federal Deposit Insurance Act 
     affect the application of other provisions of law which 
     permit agency relationships between affiliated depository 
     institutions. The Conferees note that subsection 18(r) 
     applies narrowly only to affiliated depository institutions 
     acting as agents, and has no application to agency 
     relationships concerning non-depositories as agent, whether 
     or not affiliated with the depository institution.
       Section 18(r) shall not be construed as authorizing 
     transactions which result in the transfer of any insured 
     depository institution's Federal deposit insurance from one 
     Federal deposit insurance fund to the other Federal deposit 
     insurance fund.


                          INTERSTATE BRANCHING

     Introduction
       The Conferees decided on an interstate branching structure 
     somewhat different than the structure of either the House or 
     the Senate bills. Under the House structure, branching (other 
     than the establishment of de novo branches) was permitted 
     three years after enactment through a one-step acquisition of 
     an existing bank and its conversion to branches of the 
     acquiring bank, under the National Bank Act for national 
     banks or the Federal Deposit Insurance Act for State banks. 
     The Senate structure used a two-step process effective June 
     1, 1997, with the interstate acquisition of a bank under the 
     Bank Holding Company Act of 1956 subsequently followed by a 
     consolidation of the newly acquired bank with another bank 
     owned by the holding company.
       The Conferees adopted a structure under which a bank would 
     engage in a merger transaction with the out-of-State bank and 
     convert any of its offices into branches of the resulting 
     bank under the authority of a new section of the Federal 
     Deposit Insurance Act. Such a transaction would be subject to 
     approval under the Bank Merger Act.
       The House bill authorized bank holding companies to 
     consolidate affiliated banks into a single bank with 
     interstate branches 18 months after enactment of the 
     legislation. The Senate bill did not provide for early 
     consolidation. The House receded to the Senate, thereby 
     permitting consolidation of affiliated banks in different 
     States through an interstate merger transaction when 
     interstate branching takes effect on June 1, 1997.
       Once a bank has established branches in a host State 
     through an interstate merger transaction, such bank may 
     establish and acquire additional branches at any location in 
     the host State where any bank involved in the interstate 
     merger transaction could have established or acquired 
     branches under applicable Federal or State law.
     Interstate Branching Through Mergers
       Beginning June 1, 1997, a bank may merge with a bank in 
     another State so long as both States have not opted out of 
     interstate branching between the date of enactment and May 
     31, 1997. States may enact laws opting-out of interstate 
     branching before June 1, 1997, subject to certain conditions. 
     States may also enact laws permitting interstate merger 
     transactions before June 1, 1997. Host States may impose 
     conditions on a branch resulting from an interstate merger 
     transaction that occurs before June 1, 1997, if the 
     conditions do not discriminate against out-of-State banks, 
     are not preempted by Federal law, and do not apply or require 
     performance after May 31, 1997.
       State laws requiring out-of-State banks or bank holding 
     companies to merge with, or acquire a bank that has been in 
     existence for a specified minimum period of time (not to 
     exceed five years) are preserved with respect to interstate 
     merger transactions. Any such State law which imposes a 
     minimum age requirement of more than five years on a bank to 
     be acquired is to be applied as if the minimum age 
     requirement is five years.
       Any bank that files an application for an interstate merger 
     transaction shall comply with any filing requirement of any 
     host State of the bank resulting from the transaction, to the 
     extent the requirement does not discriminate against out-of-
     State banks or bank holding companies, and is similar to any 
     requirement imposed on nonbanking corporations incorporated 
     in another State that engage in business in the host State. 
     Banks must also file a copy of the application for the 
     interstate merger transaction with the State bank supervisor 
     of the host State. The responsible agency may not approve an 
     application if the applicant materially fails to comply with 
     the host State's filing requirements.
       The responsible agency may not approve an application for 
     an interstate merger if the resulting bank would control more 
     than 10 percent or more of the total amount of deposits of 
     insured depository institutions in the United States or 30 
     percent or more of the deposits in any State affected by the 
     interstate merger. Notwithstanding the 30 percent limit, the 
     responsible agency could approve such a transaction if the 
     home State waives the 30 percent limit either by statute, 
     regulation, or order of the appropriate State official based 
     on standards that do not have the effect of discriminating 
     against out-of-state institutions.
       The concentration limits do not apply with respect to any 
     interstate merger transactions involving affiliated banks. 
     The concentration limits also do not apply to initial entry 
     into a State by a bank or its affiliates. If, however, a 
     State has a deposit concentration cap which applies in a non-
     discriminatory manner to both in-State and out-of-State banks 
     and bank holding companies, then nothing in the legislation 
     affects the State's authority also to impose such deposit 
     caps to initial entries.
       The responsible agency may approve an application for a 
     merger only if each bank involved in the transaction is 
     adequately capitalized as of the date the application is 
     filed, and the agency determines that the resulting bank will 
     continue to be adequately capitalized and adequately managed.
       The laws of the host State regarding community 
     reinvestment, consumer protection (including applicable usury 
     ceilings), fair lending, and establishment of intrastate 
     branches shall apply to any branch of a national bank in the 
     host State to the same extent as such State laws apply to a 
     branch of a bank chartered by that State, except when Federal 
     law preempts, or when the Comptroller determines that the law 
     has a discriminatory effect on the branch in comparison to 
     branches of State-chartered banks. Such laws shall be 
     enforced by the Comptroller of the Currency.
     Acquisition of Branches
       New section 44(a)(4)(A) of the Federal Deposit Insurance 
     Act (as added by section 102(a)) permits the responsible 
     Federal regulator to approve the acquisition of a branch of 
     an insured bank without the acquisition of the entire bank 
     only if the law of the State in which the branch is located 
     permits out-of-State banks to acquire a branch of a bank 
     without acquiring the bank. The Conferees intend that, in 
     approving such acquisitions, Federal regulators will ensure 
     that state minimum age restrictions under paragraph (5) which 
     apply to such acquisitions are preserved. Federal banking 
     agencies should not approve the acquisition of a branch (if 
     permitted under paragraph (4)) in host States which have 
     minimum age laws regarding the acquisition of banks, unless 
     such laws expressly permit branches in the host state to be 
     acquired without the acquisition of the bank.
     Applicability of Community Reinvestment Laws
       Under current law, most interstate movement by banking 
     organizations takes place via the Bank Holding Company Act. 
     Current regulations and practices of the Board of Governors 
     of Federal Reserve System delineate the scope of CRA 
     performance considered by the Board in acting on applications 
     by a bank holding company to move interstate via section 3(d) 
     of the Bank Holding Company Act.
       Section 44(b)(3) of the Federal Deposit Insurance Act (as 
     added by section 102(a) of this title) provides that, only 
     with respect to initial entry into a host state by a bank 
     without branches or a bank affiliate in that host state, the 
     scope of CRA performance considered by the responsible 
     Federal banking agency in connection with an interstate 
     branching application will parallel the scope of CRA 
     performance which would be considered by the Board of 
     Governors of the Federal Reserve System (to the same extent 
     as outlined in the statement of managers accompanying section 
     3(d)(3) of the Bank Holding Company Act of 1956, as amended 
     by section 101(a) of this title) if the application were for 
     an interstate bank holding company acquisition pursuant to 
     section 3(d) of the Bank Holding Company Act. Hence, in those 
     cases of initial entry, the Conferees intend that the 
     responsible federal banking agency comply with its 
     responsibilities under section 804 of CRA consistent with 
     current regulations and practices with respect to bank 
     mergers and also to take into account the CRA record, 
     including the most recent written evaluation, of any 
     affiliate banks of the resulting bank.
       With respect to all other interstate branching applications 
     apart from those involving initial entry into a host state, 
     the responsible Federal banking agency shall carry out its 
     responsibilities under section 804 of the Community 
     Reinvestment Act consistent with its current regulations and 
     practices with respect to bank mergers.
       In all cases, when taking into account the CRA performance 
     of an institution with branches in more than one state in 
     connection with acting on an interstate branching 
     application, the Conferees expect that the responsible 
     Federal banking agency will take into account the 
     institution's performance under CRA in each state in which it 
     maintains branches.
       In addition, when acting on a interstate branching 
     application, the responsible Federal banking agency shall 
     take into account the records of compliance with applicable 
     State community reinvestment laws of any applicant bank.
     Applicable State Law
       States have a strong interest in the activities and 
     operations of depository institutions doing business within 
     their jurisdictions, regardless of the type of charter an 
     institution holds. In particular, States have a legitimate 
     interest in protecting the rights of their consumers, 
     businesses, and communities. Federal banking agencies, 
     through their opinion letters and interpretive rules on 
     preemption issues, play an important role in maintaining the 
     balance of Federal and State law under the dual banking 
     system. Congress does not intend that the Interstate Banking 
     and Branching Efficiency Act of 1994 alter this balance and 
     thereby weaken States' authority to protect the interests of 
     their consumers, businesses, or communities.
       Accordingly, the title emphasizes that a host state's laws 
     regarding community reinvestment, consumer protection, fair 
     lending, and establishment of intrastate branches will apply 
     to interstate branches of national banks established in the 
     host state to the same extent as those laws apply to a branch 
     of a State bank, except when Federal law preempts application 
     of the State laws to a national bank, or when the Comptroller 
     of the Currency determines that the State laws have a 
     discriminatory effect on the branch as compared with their 
     effect on a branch of a State bank.
       Under well-established judicial principles, national banks 
     are subject to State law in many significant respects. The 
     laws of the State in which a national bank is situated will 
     apply to the national bank unless those State laws are 
     preempted by Federal law. Generally, State law applies to 
     national banks unless the State law is in direct conflict 
     with the Federal law, Federal law is so comprehensive as to 
     evidence Congressional intent to occupy a given field, or the 
     State law stands as an obstacle to the accomplishment of the 
     full purposes and objectives of the Federal law. In this 
     regard, the impact of a State law on the safe and sound 
     operations of a national bank is one factor that may be taken 
     into account in considering whether Federal law preempts 
     State law. Courts generally use a rule of construction that 
     avoids finding a conflict between the Federal and State law 
     where possible. The title does not change these judicially 
     established principles.
       During the course of consideration of the title, the 
     Conferees have been made aware of certain circumstances in 
     which the Federal banking agencies have applied traditional 
     preemption principles in a manner the Conferees believe is 
     inappropriately aggressive, resulting in preemption of State 
     law in situations where the federal interest did not warrant 
     that result. One illustration is OCC Interpretive Letter No. 
     572, dated January 15, 1992, from the OCC to Robert M. 
     Jaworski, Assistant Commissioner, State of New Jersey 
     Department of Banking, concluding that national banks in New 
     Jersey are not required to comply with the New Jersey 
     Consumer Checking Account Act. It is of utmost concern to the 
     Conferees that the agencies issue opinion letters and 
     interpretive rules concluding that Federal law preempts state 
     law regarding community reinvestment, consumer protection, 
     fair lending, or establishment of intrastate branches only 
     when the agency has determined that the Federal policy 
     interest in preemption is clear. In the case of Interpretive 
     Letter No. 572, it is the sense of the Conferees that the 
     fact the Congress has acknowledged the benefits of more 
     widespread use of lifeline accounts through the enactment of 
     the Bank Enterprise Act did not indicate that Congress 
     intended to override State basic banking laws, or occupy the 
     area of basic banking services to such an extent as to 
     displace State laws, or that the existence of State basic 
     banking laws frustrated the purpose of Congress.
       The Conferees have similar concerns regarding the scope of 
     the OCC interpretive rule that appears at 12 C.F.R. 
     Sec. 7.8000, which broadly asserts that Federal law governing 
     the deposit-taking functions of national banks preempts any 
     State law that attempts to prohibit, limit, or restrict 
     deposit account service charges. In light of the Conferees' 
     views regarding the proper application of recognized 
     preemption standards discussed above, the Conferees urge the 
     OCC to review Interpretive Ruling 7.800 to determine if it 
     should be withdrawn or revised.
       The Conferees understand that in certain cases some states 
     have imposed conditions on, or obtained commitments from, 
     bank holding companies in connection with a company's 
     acquisition of banks outside its home state. The title 
     provides that such conditions or commitments existing as of 
     the date of enactment of the Interstate Banking and Branching 
     Efficiency Act of 1994 will continue to be enforceable 
     against the bank holding company or an affiliated successor 
     company to the same extent as they were previously if a bank 
     holding company with bank subsidiaries in more than one state 
     chooses to combine its banks under new section 44 of the 
     Federal Deposit Insurance Act (as added by section 102(a) of 
     this title). The title does not create any new State 
     enforcement authority with respect to any conditions imposed 
     or commitments made before the enactment of the title.
     Interpretations Concerning Federal Preemption of State Law
       In view of the Congressional concern regarding preemption 
     of State law regarding community reinvestment, consumer 
     protection, fair lending, and establishment of intrastate 
     branches, the Conferees concluded that a more open process 
     for reaching preemption conclusions in these areas, with a 
     clearly structured, meaningful opportunity for interested 
     parties to communicate their views to the agency, was 
     warranted. Also, it is important that the agencies make their 
     determinations on Federal preemption of State law available 
     to the public in a timely and accessible manner. Accordingly, 
     the title imposes certain procedural requirements on agency 
     preemption opinion letters and interpretive rules in 
     connection with State laws regarding community reinvestment, 
     consumer protection, fair lending, and establishment of 
     intrastate branches, whether or not related to interstate 
     branching. The Conferees believe that the public notice and 
     openness provided by the new process will be a vital 
     safeguard to ensure that an agency applies the recognized 
     principles of preemption, discussed above, in a balanced 
     fashion.
       The title provides that before issuing any opinion letter 
     or interpretive ruling concluding that Federal law preempts 
     State law regarding community reinvestment, consumer 
     protection, fair lending, or establishment of intrastate 
     branches, the appropriate Federal banking agency will publish 
     notice in the Federal Register of the request, or of the 
     agency's intention on its own motion, to determine whether 
     Federal law preempts a particular State law. The notice 
     should describe each State law in question and otherwise 
     provide information sufficient to enable interested parties 
     to comment meaningfully on the issue under consideration. The 
     agency also should promptly make available upon request a 
     copy of any incoming request letter. The title also requires 
     the agency to publish in the Federal Register a copy of the 
     final opinion letter or interpretive rule.
       The Federal Register publication requirement is intended to 
     provide readily available and widespread notice to interested 
     parties of the opportunity to comment on preemption matters 
     that have not been previously resolved by the agency or 
     courts. The title requires the agency to give interested 
     parties not less than 30 days in which to submit comments. In 
     establishing the length of the comment period, the Conferees 
     intend that the agencies should take into account the 
     complexity of the preemption issue involved and the number of 
     parties likely interested in responding to the solicitation 
     of public comment and the resources of those parties. The 
     Conferees also expect the agencies to be flexible in 
     extending the comment period if requested to do so by an 
     interested party for good cause shown. The title further 
     requires the agency to take the public comments into account 
     in reaching its decision, even though each particular comment 
     need not be specifically discussed in the final product.
       This process is not intended to confer upon the agency any 
     new authority to preempt or to determine preemptive 
     Congressional intent in the four areas described, or to 
     change the substantive theories of preemption as set forth in 
     existing law. Rather, it is intended to help focus any 
     administrative preemption analysis and to help ensure that an 
     agency only makes a preemption determination when the legal 
     basis is compelling and the Federal policy interest is clear.
       The public notice and comment process is not required when 
     a particular request raises issues of Federal preemption of 
     State law that are essentially identical to those previously 
     resolved by the agency or the courts, or when the incoming 
     request regarding preemption contains no significant legal 
     basis upon which to make a preemption determination. The 
     title also exempts materials prepared for use in judicial 
     proceedings, for submission to Congress or a member of 
     Congress, and for intra-governmental use from the new public 
     notice requirements. The intra-governmental use exception, in 
     particular, is intended to carve out an exception for 
     materials provided to or from, or shared with, agency 
     personnel or other agencies in the Executive Branch. Examples 
     of the type of such material include, but are not limited to, 
     memoranda, letters, correspondence, advisory opinions, or 
     other materials that are part of the deliberative process 
     that governs the making of decisions and policies within the 
     Executive Branch. An exception to the notice and comment 
     provisions is also provided in cases when the appropriate 
     Federal banking agency determines in writing that the 
     exception is necessary to avoid a serious and imminent threat 
     to the safety and soundness of a national bank.
       The Comptroller must follow the notice and comment process 
     in making any determination under section 5155(f)(1)(A)(ii) 
     of the Revised Statutes that State laws discriminate against 
     a branch of a national bank as compared with a branch of a 
     State bank.
       The Conferees expect that the Federal banking agencies will 
     be receptive to well-supported requests from interested 
     parties seeking reconsideration of previous interpretive 
     rules or opinions regarding state community reinvestment, 
     consumer protection, fair lending and intrastate branching 
     laws, consistent with the approach to preemption discussed 
     above.
     Host State Notification Requirements
       Host States may impose any notification or reporting 
     requirement on a branch in the State if the requirement does 
     not discriminate against out-of-State banks and is not 
     preempted by Federal law. Such requirement is in addition to 
     the filing requirement for individual transactions.
     State Opt-Out of Interstate Branching
       Section 44(a)(2) of the Federal Deposit Insurance Act (as 
     added by section 102(a)) provides that States may opt out of 
     interstate branching by enacting legislation after the date 
     of enactment of the title and before June 1, 1997. If a State 
     opts-out, no bank in any other state may establish a branch 
     in that State, either State, either through an acquisition or 
     de novo. A bank whose home State opts-out of interstate 
     branching may not participate in any interstate merger 
     transaction.
     Interstate Branching De Novo With State Authorization
       The appropriate Federal regulator may approve an 
     application by a bank to establish and operate a de novo 
     branch in a State in which the bank does not maintain a 
     branch if a State opts-in to de novo branching, and expressly 
     permits de novo branching. The establishment of the initial 
     branch in a host State which permits de novo interstate 
     branching is subject to the same requirements which apply to 
     the initial acquisition of a bank in the host State, other 
     than the deposit concentration limits. Those limits are 
     inapplicable to de novo entry since, by definition, the bank 
     would not control any deposits in the host State at the time 
     of entry.
       Once a bank has established a branch in a host State by de 
     novo branching such bank may establish and acquire additional 
     branches at any location in the host State in the same manner 
     as a bank could have established or acquired under applicable 
     Federal or State law.
     Exclusive Means of Interstate Branching
       The Conferees adopted provisions to assure that the 
     comprehensive framework for interstate branching established 
     by Title I will, when the provisions take effect, be the 
     exclusive means for national and State banks to enter new 
     States with interstate branches.
       Paragraphs (2) an (3) of section 102(b) amend the National 
     Bank Act and the Federal Deposit Insurance Act, respectively, 
     to state that when the interstate merger and branching 
     provisions take effect, initial interstate entry into a host 
     State may, with exceptions for certain emergency situations, 
     occur only in accordance with this legislation. These 
     provisions will assure that the conditions and safeguards 
     which accompany initial interstate branching will apply to 
     the establishment of interstate branching networks at the 
     time those provisions take effect.
       The Comptroller of the Currency (OCC) has used the 30 mile 
     relocation provision of the National Bank Act (section 2 of 
     the Act of May 1, 1886, 12 U.S.C. 30), to approve several 
     transactions which have permitted national banks to move 
     their main offices to other States but to retain branches in 
     the States left by the main offices. Section 102(b)(2) amends 
     the provision so that after June 1, 1997, a national bank 
     relocating its main office to another state may maintain its 
     branches in the first state only if those branches could have 
     been established by a bank with its home State in the new 
     State. However, along with the OCC's approval for the 
     relocation, the bank would be required to obtain the 
     Comptroller's approval under section 5155 of the Revised 
     Statutes to continue to operate any remaining branch offices 
     located in State other than the State of its new main office. 
     Thus, the bank would be required to file a consolidated 
     application with the OCC covering both aspects of the 
     transaction; the OCC would be authorized to act on the 
     remaining out-of-State branch aspect of the transaction only 
     pursuant to section 5155. State banks are treated in a 
     similar manner.
       The Conferees are aware of the OCC procedures in permitting 
     relocation across state lines. The Conferees concur with 
     those procedures, including the application of appropriate 
     State law and authority. The Conferees expect the OCC to 
     continue to follow those procedures until the provisions of 
     Title I become fully applicable on June 1, 1997.
       Banks that have moved their main offices pursuant to 12 
     U.S.C. 30 should not be treated differently than other banks 
     with their main offices in that state. Specifically, for 
     purposes of section 3(d) of the Bank Holding Company, and 
     sections 5(d)(3) and 18(c) of the Federal Deposit Insurance 
     Act, such banks shall be able to make acquisitions and 
     establish branches in the state to which their main office is 
     relocated to the same extent as any other bank with its main 
     office in that state.


                 amendment to the home owners loan act

       The amendment made to the Home Owners Loan Act by section 
     102(b)(5) of the bill overturns an interpretation of that Act 
     in First Gibraltar Bank  v. Morales, (5th Cir., Dkt. 93-8170, 
     decided April 29, 1994). In the case the United States Court 
     of Appeals for the Fifth Circuit held that the Office of 
     Thrift Supervision had the authority to issue a regulation 
     preempting a provision in the Texas Constitution protecting 
     homesteads of consumers in the State.
       This amendment clarifies that neither the Home Owners Loan 
     Act nor any other provision of law provides the Director of 
     the Office of Thrift Supervision with the authority, through 
     regulation or otherwise, to preempt Texas law in the area of 
     homestead protection.


        provisions relating to direct branches of foreign banks

     Establishment of Direct Branches of a Foreign Bank Outside 
         the Foreign Bank's Home State
       Under the House bill, section 5(a) of the International 
     Banking Act of 1978 (IBA) was amended to permit a foreign 
     bank to establish and operate State-licensed branches, either 
     de novo or by acquisition and merger, in any State outside 
     its home State to the same extent that a bank chartered by 
     the foreign bank's home State may establish such branches de 
     novo or by acquisition and merger, respectively. A parallel 
     provision allowed a foreign bank to establish and operate 
     Federally-licensed branches in any State outside its home 
     State to the same extend that a national bank from the 
     foreign bank's home State may do so. In addition, the House 
     bill restates the provision of current law that allows a 
     State to permit foreign banks to establish agencies or 
     limited branches that accept only such deposits as are 
     permissible for a corporation organized under section 25A of 
     the Federal Reserve Act to accept.
       The Senate bill did not amend the IBA. As a result, the 
     Senate bill permitted foreign banks to engage in interstate 
     branching only if they first established or acquired a bank 
     in the United States and then followed the same procedures 
     applicable to U.S. Banks. The Senate adopted its approach to 
     address its concern that the wholesale direct branches of 
     foreign banks enjoy competitive advantages over U.S. banks 
     because such branches are not subject to the Community 
     Reinvestment Act or to deposit insurance coverage and 
     assessments.
       The Conferees agreed to adopt the House structure regarding 
     foreign banks. However, in order to address concerns 
     regarding a level playing field between wholesale direct 
     branches of foreign banks and domestic banks, the Conferees 
     added provisions regarding: (a) continued application of CRA 
     requirements to a direct branch resulting from an initial 
     interstate entry by acquisition of a regulated financial 
     institution: (b) revision of the regulations governing the 
     types of deposits that may be accepted by uninsured direct 
     branches of a foreign bank; (c) types of activities at 
     offshore shell branches managed and controlled by U.S. 
     branches and agencies of foreign banks; and (d) application 
     of consumer protection laws to direct branches of foreign 
     banks. These provisions are among those described below.
       Requirement for a separate subsidiary. Section 5(a) of the 
     IBA is amended to provide that the Federal Reserve Board or 
     the Comptroller of the Currency may require a foreign bank to 
     establish a separate U.S. subsidiary bank in order to engage 
     in interstate branching if the Board or the Comptroller finds 
     that it is the only way to verify that a foreign bank adheres 
     to capital requirements that are equivalent to those 
     applicable to a U.S. bank engaged in interstate branching.
       Continued application of CRA requirements to a direct 
     branch resulting from an initial interstate entry by 
     acquisition of a regulated financial institution. The 
     Conferees added section 5(a)(8) to the IBA to provide that in 
     cases where a foreign bank acquires a bank or a branch of a 
     bank, in a State in which the foreign bank does not maintain 
     a branch, and such acquired bank was, or was part of, 
     immediately prior to the acquisition, a regulated financial 
     institution as defined in the Community Reinvestment Act 
     (CRA), the CRA shall continue to apply to each branch of the 
     foreign bank which results from the acquisition as if such 
     branch were a reguated financial institution. The Conferees 
     note that the requirements of section 6(c) of the IBA will 
     still apply. The requirements of section 5(a)(8) would not 
     apply in the case of a branch that results from such 
     acquisition that accepts only such deposits as are 
     permissible for a corporation organized under section 25A of 
     the Federal Reserve Act to accept.
       Continued authority for branches, agencies and commercial 
     lending companies established prior to this Act. Section 5(b) 
     of the IBA is amended to include a provision that permits 
     foreign banks that lawfully established and operated 
     interstate branches, agencies or commercial lending company 
     subsidiaries before the date of enactment of this Act to 
     continue to operate such offices or subsidiaries after the 
     enactment of this Act.
       Determining home State of foreign bank. Section 5(c) of the 
     IBA is amended to provide that any foreign bank that operates 
     a branch, agency, subsidiary commercial bank or commercial 
     lending company must have a home State.
       Clarification of direct branching rules in the case of a 
     foreign bank with a domestic bank subsidiary. Section 5(d) is 
     added to the IBA to clarify that a foreign bank may establish 
     direct branches and agencies on an interstate basis and also 
     own or control a U.S. subsidiary bank, and that a national or 
     State subsidiary bank of a foreign bank may acquire, 
     establish or operate branches outside its home State to the 
     same extent as any other national or State bank, 
     respectively, from the subsidiary bank's home State.
     Deposits That May be Accepted by Uninsured Direct Branches of 
         Foreign Banks
       Revision of regulations governing types of deposits that 
     may be accepted by uninsured direct branches of foreign 
     banks. The IBA was amended in 1991 to prohibit a foreign bank 
     from establishing any new branches which take domestic retail 
     deposits that have balances of less than $100,000 and require 
     deposit insurance. As a result, a foreign bank must establish 
     a U.S. subsidiary bank in order to conduct a domestic retail 
     deposit-taking business. Regulations issued by the Federal 
     Deposit Insurance Corporation (FDIC) and the Comptroller of 
     the Currency under section 6 of the IBA govern the types of 
     deposits that may be accepted by uninsured direct branches of 
     foreign banks. To address concerns that these regulations may 
     permit such branches to engage to some extent in domestic 
     retail deposit-taking activity, in regard to which they are 
     not subject to FDIC insurance coverage and assessments or to 
     the requirements of the Community Reinvestment Act, the 
     Conferees added a requirement that the FDIC and the 
     Comptroller revise their regulations to ensure that foreign 
     banking organizations do not receive an unfair competitive 
     advantage over U.S. banking organizations.
       In reviewing their regulations in accordance with this 
     subsection, the agencies must consider whether to permit the 
     acceptance of initial deposits of less than $100,000 only 
     from specified types of customers. As part of this revision, 
     the agencies must reduce--from five percent of average branch 
     deposits to no more than one percent--the exemption that 
     allows such branches to accept initial deposits of less than 
     $100,000 from any party on a de minimis basis. In carrying 
     out this revision, the agencies must take into account the 
     importance of maintaining and improving the availability of 
     credit to all sectors of the U.S. economy, including the 
     international trade finance sector of the U.S. economy. The 
     agencies must publish final regulations no later than twelve 
     months after the date of enactment of this Act and may 
     establish reasonable transition rules to facilitate any 
     termination of any deposit-taking activities that were 
     previously permissible.
       Treatment of FDIC-insured banks chartered in Puerto Rico, 
     Guam, American Samoa, Virgin Islands and U.S. territories. 
     Section 6(d) of the IBA is amended to clarify that banks 
     insured by the FDIC and chartered in any territory of the 
     United States, Puerto Rico, Guam, American Samoa or the 
     Virgin Islands are not included as foreign banks for purposes 
     of the requirement to establish a banking subsidiary to 
     engage in a domestic retail deposit-taking business. This 
     provision clarifies that such insured banks (which are also 
     subject to CRA requirements) are to be treated like any other 
     FDIC-insured bank for purposes of acceptance of retail 
     deposits and are therefore not subject to the provisions of 
     section 6(c).
     Types of Activities at Offshore Shell Branches Managed and 
         Controlled by U.S. Agencies and Branches of Foreign Banks
       U.S. banking agencies do not regulate or supervise the 
     activities of offshore shell branches of foreign banks, even 
     if such branches are managed and controlled by U.S. agencies 
     and branches of foreign banks. The Conferees wanted to avoid 
     any potential for a foreign bank to use its U.S. branches or 
     agencies to manage types of activities through offshore shell 
     branches that could not be managed by a U.S. bank at its 
     foreign branches or subsidiaries.
       To address this concern, the Conferees added Section 7(k) 
     to the IBA to provide that a U.S. branch or agency of a 
     foreign bank may not, through an offshore shell branch that 
     it manages or controls, manage types of activities that a 
     U.S. bank is not permitted to manage at a foreign branch or 
     subsidiary. Any regulations promulgated to carry out this 
     section must be promulgated in accordance with section 13 of 
     the IBA and must be uniform, to the extent practicable.
     Other Foreign Bank Provisions
       Application of consumer protection laws to direct branches 
     of foreign banks. Section 9(b) of the IBA is amended to 
     affirm that direct branches and agencies of foreign banks and 
     commercial lending company subsidiaries are, by various 
     statutory provisions, subject to the following consumer 
     protection laws: Electronic Funds Transfer Act, Equal Credit 
     Opportunity Act, Expedited Funds Availability Act, Fair 
     Credit Billing Act, Fair Credit Reporting Act, Fair Debt 
     Collection Practices Act, Home Mortgage Disclosure Act, Real 
     Estate Settlement Procedures Act, Truth in Lending Act, Truth 
     in Leasing Act, and Truth in Savings Act.
       Foreign bank examination fees. Sections 7(c) and 10(c) of 
     the International Banking Act state that the Federal Reserve 
     Board shall assess the cost of any examination of a branch, 
     agency or representative office of a foreign bank against the 
     foreign bank. The conference report provides a three-year 
     moratorium on any assessments under these sections.


  coordination of examination authority regarding interstate branches

       Section 105 permits the appropriate State bank supervisor 
     of a host State to examine branches of out-of-State Banks to 
     assure compliance with host State laws, including those 
     governing banking, community reinvestment, fair lending, 
     consumer protection and permissible activities, and to assure 
     that the activities of the branch are conducted in a safe and 
     sound manner.
       The host State bank supervisor, or other host State law 
     enforcement officer (if authorized under host State law) may 
     take appropriate enforcement actions and proceedings 
     regarding the branch.
       State bank supervisors are permitted to enter into 
     cooperative agreements to facilitate supervision of State 
     banks operating interstate. Under the Senate-passed bill, 
     such agreements would have been subject to approval of the 
     appropriate Federal regulator. The House-passed bill had no 
     requirement for approval. The Senate receded to the House on 
     this issue. Both bills contained a provision that nothing in 
     the section affected the authority of Federal banking 
     agencies to examine branches of insured depository 
     institutions, and the Conferees enclosed such a provision in 
     the title.


                            branch closures

       The House-passed bill added a new section 42(d) to the 
     Federal Deposit Insurance Act, setting forth a procedure for 
     notice, comment, consultation with community leaders and a 
     meeting of representatives of the appropriate Federal banking 
     agency whenever an interstate bank proposes closing a branch 
     in a low- or moderate-income area. The Senate-passed bill 
     contained no comparable provision.
       The House provision was amended by the Conferees to 
     specifically include other interested agencies in the 
     required meeting in order to include the National Credit 
     Union Administration in the meetings for the purpose of 
     exploring the development of the use of community development 
     credit unions.
       This section does not effect the authority of an interstate 
     bank to close a branch, or the timing of the closing.


                federal reserve board study on bank fees

       The Federal Reserve is required to conduct an annual survey 
     of the fees charged by banks for retail banking services. 
     Each report shall describe any national or state trends in 
     the cost and availability of such services. Reports are 
     required for seven years.


             prohibition against deposit production offices

       In order to assure that the new interstate branching 
     authorities provided by the Interstate Banking and Branching 
     Efficiency Act of 1994 do not result in the taking of 
     deposits from a community without concern for the credit 
     needs of that community, section 107 requires each 
     appropriate Federal banking agency to promulgate regulations 
     effective June 1, 1997, prohibiting interstate branches from 
     being used as deposit production offices. The regulations are 
     to include guidelines to ensure that each interstate branch 
     is reasonably helping to meet the credit needs of the 
     community in which the branch operates.
       The Conferees do not intend that section 109 creates any 
     additional regulatory or paperwork burdens for any 
     institution.
       The regulations must require that if the percentage of 
     loans made by an out-of-state bank in the host state relative 
     to the deposits taken by the out-of-State bank in the host 
     state is less than half the average of such percentage for 
     all host-state banks, the appropriate federal banking agency 
     shall review the loan portfolio of the bank and determine 
     whether the out-of-state bank is reasonably helping to meet 
     the credit needs of the community served by the bank in the 
     host state. If the agency determines that it is not, it may 
     order the branch to be closed and the bank which established 
     the branch may not open to a new branch in that State, unless 
     the bank provides reasonable assurances to the agency that 
     the bank has an acceptable plan that will reasonably help to 
     meet the credit needs of the communities served by the bank 
     in the host state.
       In making such a determination, the appropriate Federal 
     banking agency shall consider a number of factors including 
     whether the branch was acquired as part of the purchase of a 
     failed or failing depository institution; whether the branch 
     was acquired under circumstances where there was a low loan-
     to-deposit ratio; whether the branch has a higher 
     concentration of commercial and credit card lending; and the 
     ratings received by the out-of-state bank in CRA evaluations.
       This provision applies to new interstate branches of 
     national banks, state banks, and foreign banks established 
     pursuant to this title or any amendment thereto.


community reinvestment act evaluation of banks with interstate branches

       For each insured institution that maintains branches in two 
     or more states, the appropriate Federal banking agency must 
     prepare a written evaluation (pursuant to sections 807(a), 
     (b), and (c) of the Community Reinvestment Act) of the 
     institution's overall CRA performance, along with separate 
     written evaluations and ratings of the institution's CRA 
     performance in each state in which it maintains branches. If 
     an institution has branches in two States in a single muli-
     state metropolitan area, the agency will prepare a separate 
     written evaluation of the institution's CRA performance 
     within that metropolitan area, and adjust the state-by-state 
     evaluations of the institution accordingly.
       Each state-by-state evaluation is to present information 
     separately for each metropolitan area (within that state) in 
     which the institution maintains one or more branches, and 
     separately for the nonmetropolitan area of the state if the 
     institution has at least one branch in such non-metropolitan 
     area.


                      restatement of existing law

     State Taxation Authority
       Section 111(1) restates as part of Title I the provisions 
     of section 7(b) of the Bank Holding Company Act of 1956 
     regarding state taxation authority. Section 111(2) states 
     that nothing in the title shall be construed as affecting the 
     existing authority of any state or political subdivision of 
     any state to impose and maintain a nondiscriminatory 
     franchise or other nonproperty tax on any bank, branch or 
     bank holding company.
     Applicability of Section 5197 of the Revised Statutes and 
         Section 27 of the FDI Act
       Section 111(3) specifically states that nothing in Title I 
     affects sections 5179 of the Revised Statutes or section 27 
     of the Federal Deposit Insurance Act. Accordingly, the 
     amendments made by the Interstate Banking and Branching 
     Efficiency Act of 1994 that authorize insured depository 
     institutions to branch interstate do not affect existing 
     authorities with respect to any charges under section 5197 of 
     the Revised Statutes or section 27 of the Federal Deposit 
     Insurance Act imposed by national or state banks for loans or 
     other extensions of credit made to borrowers outside the 
     state where the bank making the loan or other extension of 
     credit is located.


                     gao report on data collection

       The Conferees adopted a Senate provision requiring a 
     General Accounting Office report no later than 9 months after 
     enactment on existing requirements for insured depository 
     institutions to collect and report deposit and lending data 
     and determine what modifications are needed so that 
     interstate branching results in no material loss of 
     information important to regulatory or congressional 
     oversight of insured depository institutions. The House-
     passed bill had no similar provision.


  preemption of arkansas usury ceiling as it applies to certain loans

       The Conferees adopted a Senate-passed provision preempting 
     Arkansas usury limit for Consolidated Farm and Rural 
     Development Act loans, while providing the State with a 
     three-year period in which to reenact its limitation. The 
     House-passed bill had no similar provision.

                      Title II--General Provisions


                         statute of limitations

       Section 201 of the bill as adopted by the conference would 
     permit the FDIC or the RTC, as conservator or receiver of a 
     failed depository institution, to ``revive'' under certain 
     circumstances, certain tort claims that had expired under a 
     State statute of limitations within five years of the 
     appointment of the conservator or receiver. This provision 
     does not affect other applicable State laws concerning the 
     running or the tolling of statutes of limitations (by reason 
     of adverse domination or otherwise), nor does it alter 
     section 11(k) of the Federal Deposit Insurance Act, 12 U.S.C. 
     1821(k), as amended by the Financial Institutions Reform, 
     Recovery and Enforcement Act of 1989.
       The revival of expired claims is an extraordinary remedy 
     because it is a form of the retroactive application of law 
     which the courts and Congress have generally disfavored. 
     Accordingly, section 201 would limit this extraordinary 
     remedy to claims arising from an egregious class of conduce, 
     i.e., fraud, intentional misconduct resulting in unjust 
     enrichment, and intentional misconduct resulting in 
     substantial loss to the institution. This three-pronged, 
     fraud/intentional misconduct standard is precisely the same 
     as the one that Congress adopted last year, after 
     considerable debate, with respect to a retroactive statute of 
     limitations extension in the Resolution Trust Corporation 
     Completion Act of 1993.
       As with last year's reauthorization of the RTC, the 
     intentional misconduct standard for revival in this provision 
     is not intended to apply to claims arising from negligence, 
     whether pleaded as simple, ordinary, or gross negligence. 
     Claims arising from such negligent conduct by directors, 
     officers, and outside professionals, such as negligent 
     approval or review of loan applications, do not warrant the 
     extraordinary remedy of revival if it is in the contravention 
     of State law.
       Section 201 would recognize that there is a level of 
     misconduct which justifies Congressional actions to 
     retroactively set aside a State statute of limitations, 
     particularly where, for example, this misconduct involves 
     individuals who improperly manipulated institutional affairs 
     to prevent themselves from being brought to justice before 
     the State period of limitations expired. This level of 
     misconduct is reflected in particular forms of intentional 
     behavior. The intentional misconduct standard is written to 
     specifically include conduct such as self-dealing that result 
     in unjust enrichment or a substantial loss to the 
     institution, manipulation by institution insiders that 
     results in a running of a statute of limitations, falsifying 
     financial records that disguises increased financial loss, 
     and conspiracy to violate banking rules or regulations.


             sense of the senate regarding export controls

       The Conferees adopted a Senate provision expressing the 
     Sense of the Senate that the President should work toward 
     establishment of a multilateral system to prevent acquisition 
     by rogue regimes of products and technologies which could 
     pose a threat to the national security of the United States. 
     The House bill contained no similar provision.


   amendment relating to silver medals for Persian gulf war veterans

       The purpose of the LaRocco Amendment is to permit the 
     Secretary of the Treasury to begin production of the Persian 
     Gulf silver medals, which were authorized by the 102nd 
     Congress and signed into law by President Bush. These medals 
     are in recognition of service rendered to the nation by 
     members of the U.S. Armed Forces who served in the Gulf War. 
     The amendment will allow the Secretary of the Treasury to use 
     funds that have already been generated through ongoing sales 
     of bronze replicas to begin production and continue so long 
     as funds remain available.


           commemoration of 1995 special olympics world games

       The 1995 Special Olympics World Games Commemorative Coin 
     Act authorizes the issuance of 800,000 one-dollar silver 
     coins, which will be emblematic of the 1995 Special Olympics 
     World Games. The coins will be issued during the period 
     beginning on January 15, 1995 and ending on December 31, 
     1995, and will result in no net cost to the United States 
     Government. The dates of issuance are not intended to 
     conflict with any other coins authorized under this Act.
       The 1995 Special Olympics World Games will be held July 1-
     9, 1995 in New Haven, CT and will attract more than 6,500 
     athletes from around the world. Funds raised through the ten 
     dollar surcharge on the sale of each coin will be used to: 
     (1) provide a world-class sporting event for athletes with 
     mental retardation; (2) demonstrate to a global audience the 
     talents, dedication and courage of persons with mental 
     retardation; and (3) underwrite the cost of staging and 
     promoting the 1995 Special Olympics World Games.


             national community service commemorative coins

       The National Community Service Commemorative Coin Act 
     authorizes the issuance of 500,000 one-dollar silver 
     commemorative coins, which will be emblematic of community 
     service volunteers. The coins will be issued for a period of 
     no less than six months, and no more than 12 months, 
     beginning no later than September 1, 1996, and will result in 
     no net cost to the United States Government.
       Funds raised through the ten dollar surcharge on the sale 
     of each coin will be paid to the National Community Service 
     Trust for the purpose of funding innovative community service 
     programs at American universities, including the service, 
     research, and teaching activities of faculty and students 
     involved in such programs.


             robert f. kennedy memorial commemorative coins

       The Robert F. Kennedy Memorial Commemorative Coin Act 
     authorizes the issuance of 500,000 one-dollar silver 
     commemorative coins, which will be emblematic of the life and 
     work of former Attorney General and United States Senator 
     Robert F. Kennedy. The coins will be issued for a period of 
     no less than six months, and no more than 12 months, 
     beginning no later than January 1, 1998, and will result in 
     no net cost to the United States Government.
       Funds raised through the ten dollar surcharge on the sale 
     of each coin will be used to improve the endowment of the 
     Robert F. Kennedy Memorial.


     UNITED STATES MILITARY ACADEMY BICENTENNIAL COMMEMORATIVE COIN

       This legislation provides for the minting of coins to 
     commemorate the bicentennial of the U.S. Military Academy 
     located in West Point, New York. The Academy will celebrate 
     its bicentennial on March 16, 2002.
       The Military Academy has provided our nation with the core 
     of its military officers. It was founded in 1802, principally 
     as a result of the vision of George Washington. West Point 
     has been the source of most of our Nation's great military 
     leaders, like Robert E. Lee, Ulysses S. Grant, John Pershing, 
     Dwight Eisenhower, and Norman Schwarzkopf. However, West 
     Point is much more than a training school for military 
     leaders: It has always been a national bedrock of values 
     which are best expressed by the Academy's motto, ``Duty, 
     Honor, Country.''
       In the year 2002, the United States Mint will issue 500,000 
     silver dollars to commemorate West Point's bicentennial. The 
     silver dollars will be struck at the United States Bullion 
     Depository at West Point. A $10 surcharge will be added to 
     the cost of the coins. The money raised from the surcharges 
     will be used by the Association of Graduates to provide 
     direct support to the academic, military, physical, moral, 
     and ethical development programs of the Corps of Cadets at 
     the United States Military Academy. The Association of 
     Graduates provides important activities and programs for the 
     Cadets in hopes of helping each young person adjust to the 
     tough and demanding four years at West Point. These 
     activities and programs are not funded by the taxpayers. 
     These coins will be minted at no net cost to the government.


            united states botanic garden commemorative coins

       The United States Botanic Garden Commemorative Coin Act 
     authorizes the issuance of 500,000 one-dollar silver 
     commemorative coins, which will be emblematic of the 175th 
     anniversary of the founding of the United States Botanic 
     Garden. Although the coins will be issued beginning on 
     January 1, 1997, and ending on December 31, 1997, the coins 
     shall be inscribed with the years 1820-1995 in order to 
     properly commemorate the Garden's 175th anniversary. No other 
     dates shall appear on the coin. The issuance of these coins 
     will result in no net cost to the United States Government.


                   mount rushmore commemorative coins

       In 1990, legislation was passed directing the U.S. Treasury 
     to mint a series of Mount Rushmore commemorative coins in 
     1991. The legislation specified that 50 percent of the 
     surcharge from each coin sold was to be directed to the Mount 
     Rushmore Society to preserve the Memorial and upgrade its 
     facilities. The other 50 percent of the surcharge was to be 
     directed to the U.S. Treasury for the purposes of deficit 
     reduction. At the time the legislation was passed, it was 
     anticipated that all of the coins would be sold, providing 
     revenues of $18,750,000 each of the Mount Rushmore Society 
     and the U.S. Treasury.
       Unfortunately, sales of the Mount Rushmore Commemorative 
     Coins generated only $12 million. This left the Mount 
     Rushmore Society with revenues of only $6 million--less than 
     a third of what was anticipated and not enough to fund the 
     Monument's preservation and improvement. This provision would 
     direct the first $18,750,000 in surcharges to the Society, 
     and allocate the remainder to the U.S. Treasury.


                     financial services commission

       The Conferees adopted a modified version of a Senate 
     provision requiring a study of the United States financial 
     services system. The House bill contained no similar 
     provision.
       The provision directs the Secretary of the Treasury to 
     conduct a study of the strengths and weaknesses of the U.S. 
     financial services system in meeting the needs of users of 
     the system. The Secretary is to appoint between 9 and 14 
     members to an Advisory Commission on Financial Services, with 
     which the Secretary is to consult in conducting the study. 
     The Secretary is also to consult with enumerated federal 
     agencies and officials in conducting the study. The Secretary 
     is to report the results of the study and any recommendations 
     not later than 15 months after the date of enactment of the 
     legislation.


              flexibility in choosing boards of directors

       The Conferees agreed to reduce from two-thirds to a 
     majority the proportion of the board of directors of a 
     national bank who must reside in the same state in which the 
     bank is located (or within 100 miles of the main office).
     From the Committee on Banking, Finance and Urban Affairs, for 
     consideration of the House bill, and the Senate amendment, 
     and modifications committed to conference:
     Henry Gonzalez,
     Steve Neal,
     John J. LaFalce,
     Bruce F. Vento,
     Charles Schumer,
     Barney Frank,
     Paul E. Kanjorski,
     Joseph Kennedy,
     James Leach,
     Bill McCollum,
     Marge Roukema,
     Doug Bereuter,
     Tom Ridge,
     As additional conferees from the Committee on Agriculture, 
     for consideration of sec. 109 of the Senate amendment, and 
     modifications committed to conference:
     E de la Garza,
     Charlie Stenholm,
     Harold L. Volkmer,
     Timothy J. Penny,
     Tim Johnson,
     Pat Roberts,
     Larry Combest,
     Wayne Allard,
     As additional conferee from the Committee on Foreign Affairs, 
     for consideration of sec. 402 of the Senate amendment, and 
     modifications committed to conference:
     Ben Gilman,
     As additional conferees from the Committee on the Judiciary, 
     for consideration of secs. 101-03 of the House bill, and 
     title II and secs. 102-03 of the Senate amendment, and 
     modifications committed to conference:
     R.L. Mazzoli,
     Bill Hughes,
     Jan Glickman,
     Rick Boucher,
     John Bryant,
     Hamilton Fish,
     Chas T. Canady,
     Bob Goodlatte,
                                Managers on the Part of the House.

     Don Riegle,
     Paul Sarbanes,
     Christopher Dodd,
     Jim Sasser,
     Managers on the Part of the Senate.

                          ____________________