[Congressional Record (Bound Edition), Volume 152 (2006), Part 3]
[House]
[Pages 3002-3023]
[From the U.S. Government Publishing Office, www.gpo.gov]




            FINANCIAL SERVICES REGULATORY RELIEF ACT OF 2005

  Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3505) to provide regulatory relief and improve productivity for 
insured depository institutions, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 3505

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Financial 
     Services Regulatory Relief Act of 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                   TITLE I--NATIONAL BANK PROVISIONS

Sec. 101. National bank directors.
Sec. 102. Voting in shareholder elections.
Sec. 103. Simplifying dividend calculations for national banks.
Sec. 104. Repeal of obsolete limitation on removal authority of the 
              Comptroller of the Currency.
Sec. 105. Repeal of intrastate branch capital requirements.
Sec. 106. Clarification of waiver of publication requirements for bank 
              merger notices.
Sec. 107. Equal treatment for Federal agencies of foreign banks.
Sec. 108. Maintenance of a Federal branch and a Federal agency in the 
              same State.
Sec. 109. Business organization flexibility for national banks.
Sec. 110. Clarification of the main place of business of a national 
              bank.
Sec. 111. Capital equivalency deposits for Federal branches and 
              agencies of foreign banks.
Sec. 112. Enhancing the authority for national banks to make community 
              development investments.

                TITLE II--SAVINGS ASSOCIATION PROVISIONS

Sec. 201. Parity for savings associations under the Securities Exchange 
              Act of 1934 and the Investment Advisers Act of 1940.
Sec. 202. Investments by Federal savings associations authorized to 
              promote the public welfare.
Sec. 203. Mergers and consolidations of Federal savings associations 
              with nondepository institution affiliates.
Sec. 204. Repeal of statutory dividend notice requirement for savings 
              association subsidiaries of savings and loan holding 
              companies.
Sec. 205. Modernizing statutory authority for trust ownership of 
              savings associations.

[[Page 3003]]

Sec. 206. Repeal of overlapping rules governing purchased mortgage 
              servicing rights.
Sec. 207. Restatement of authority for Federal savings associations to 
              invest in small business investment companies.
Sec. 208. Removal of limitation on investments in auto loans.
Sec. 209. Selling and offering of deposit products.
Sec. 210. Funeral- and cemetery-related fiduciary services.
Sec. 211. Repeal of qualified thrift lender requirement with respect to 
              out-of-state branches.
Sec. 212. Small business and other commercial loans.
Sec. 213. Clarifying citizenship of Federal savings associations for 
              Federal court jurisdiction.
Sec. 214. Increase in limits on commercial real estate loans.
Sec. 215. Repeal of one limit on loans to one borrower.
Sec. 216. Savings association credit card banks.
Sec. 217. Interstate acquisitions by S&L holding companies.
Sec. 218. Business organization flexibility for federal savings 
              associations.

                   TITLE III--CREDIT UNION PROVISIONS

Sec. 301. Privately insured credit unions authorized to become members 
              of a Federal home loan bank.
Sec. 302. Leases of land on Federal facilities for credit unions.
Sec. 303. Investments in securities by Federal credit unions.
Sec. 304. Increase in general 12-year limitation of term of Federal 
              credit union loans to 15 years.
Sec. 305. Increase in 1 percent investment limit in credit union 
              service organizations.
Sec. 306. Member business loan exclusion for loans to nonprofit 
              religious organizations.
Sec. 307. Check cashing and money transfer services offered within the 
              field of membership.
Sec. 308. Voluntary mergers involving multiple common-bond credit 
              unions.
Sec. 309. Conversions involving common-bond credit unions.
Sec. 310. Credit union governance.
Sec. 311. Providing the National Credit Union Administration with 
              greater flexibility in responding to market conditions.
Sec. 312. Exemption from pre-merger notification requirement of the 
              Clayton Act.
Sec. 313. Treatment of credit unions as depository institutions under 
              securities laws.
Sec. 314. Clarification of definition of net worth under certain 
              circumstances for purposes of prompt corrective action.
Sec. 315. Amendments relating to nonfederally insured credit unions.

              TITLE IV--DEPOSITORY INSTITUTION PROVISIONS

Sec. 401. Easing restrictions on interstate branching and mergers.
Sec. 402. Statute of limitations for judicial review of appointment of 
              a receiver for depository institutions.
Sec. 403. Reporting requirements relating to insider lending.
Sec. 404. Amendment to provide an inflation adjustment for the small 
              depository institution exception under the Depository 
              Institution Management Interlocks Act.
Sec. 405. Enhancing the safety and soundness of insured depository 
              institutions.
Sec. 406. Investments by insured savings associations in bank service 
              companies authorized.
Sec. 407. Cross guarantee authority.
Sec. 408. Golden parachute authority and nonbank holding companies.
Sec. 409. Amendments relating to change in bank control.
Sec. 410. Community reinvestment credit for esops and ewocs.
Sec. 411. Minority financial institutions.

         TITLE V--DEPOSITORY INSTITUTION AFFILIATES PROVISIONS

Sec. 501. Clarification of cross marketing provision.
Sec. 502. Amendment to provide the Federal Reserve Board with 
              discretion concerning the imputation of control of shares 
              of a company by trustees.
Sec. 503. Eliminating geographic limits on thrift service companies.
Sec. 504. Clarification of scope of applicable rate provision.
Sec. 505. Savings associations acting as agents for affiliated 
              depository institutions.
Sec. 506. Credit card bank investments for the public welfare.

                  TITLE VI--BANKING AGENCY PROVISIONS

Sec. 601. Waiver of examination schedule in order to allocate examiner 
              resources.
Sec. 602. Interagency data sharing.
Sec. 603. Penalty for unauthorized participation by convicted 
              individual.
Sec. 604. Amendment permitting the destruction of old records of a 
              depository institution by the FDIC after the appointment 
              of the FDIC as receiver.
Sec. 605. Modernization of recordkeeping requirement.
Sec. 606. Streamlining reports of condition.
Sec. 607. Expansion of eligibility for 18-month examination schedule 
              for community banks.
Sec. 608. Short form reports of condition for certain community banks.
Sec. 609. Clarification of extent of suspension, removal, and 
              prohibition authority of Federal banking agencies in 
              cases of certain crimes by institution-affiliated 
              parties.
Sec. 610. Streamlining depository institution merger application 
              requirements.
Sec. 611. Inclusion of Director of the Office of Thrift Supervision in 
              list of banking agencies regarding insurance customer 
              protection regulations.
Sec. 612. Protection of confidential information received by Federal 
              banking regulators from foreign banking supervisors.
Sec. 613. Prohibition on participation by convicted individual.
Sec. 614. Clarification that notice after separation from service may 
              be made by an order.
Sec. 615. Enforcement against misrepresentations regarding FDIC deposit 
              insurance coverage.
Sec. 616. Changes required to small bank holding company policy 
              statement on assessment of financial and managerial 
              factors.
Sec. 617. Exception to annual privacy notice requirement under the 
              Gramm-Leach-Bliley Act.
Sec. 618. Biennial reports on the status of agency employment of 
              minorities and women.
Sec. 619. Coordination of State examination authority.
Sec. 620. Nonwaiver of privileges.
Sec. 621. Right to Financial Privacy Act of 1978 amendment.
Sec. 622. Deputy director; succession authority for Director of the 
              Office of Thrift Supervision.
Sec. 623. Limitation on scope of new agency guidelines.

             TITLE VII--``BSA'' COMPLIANCE BURDEN REDUCTION

Sec. 701. Exception from currency transaction reports for seasoned 
              customers.
Sec. 702. Reduction in inconsistencies in monetary transaction 
              recordkeeping and reporting enforcement and examination 
              requirements.
Sec. 703. Additional reforms relating to monetary transaction and 
              recordkeeping requirements applicable to financial 
              institutions.
Sec. 704. Study by Comptroller General.
Sec. 705. Feasibility study required.
Sec. 706. Annual report by Secretary of the Treasury.
Sec. 707. Preservation of money services businesses.

             TITLE VIII--CLERICAL AND TECHNICAL AMENDMENTS

Sec. 801. Clerical amendments to the Home Owners' Loan Act.
Sec. 802. Technical corrections to the Federal Credit Union Act.
Sec. 803. Other technical corrections.
Sec. 804. Repeal of obsolete provisions of the Bank Holding Company Act 
              of 1956.

        TITLE IX--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS

Sec. 901. Exception for certain bad check enforcement programs.
Sec. 902. Other amendments.

                   TITLE I--NATIONAL BANK PROVISIONS

     SEC. 101. NATIONAL BANK DIRECTORS.

       (a) In General.--Section 5146 of the Revised Statutes of 
     the United States (12 U.S.C. 72) is amended--
       (1) by striking ``Sec. 5146. Every director must during'' 
     and inserting the following:

     ``SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS.

       ``(a) Residency Requirements.--Every director of a national 
     bank shall, during'';
       (2) by striking ``total number of directors. Every director 
     must own in his or her own right'' and inserting ``total 
     number of directors.
       ``(b) Investment Requirement.--
       ``(1) In general.--Every director of a national bank shall 
     own, in his or her own right,''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Exception for subordinated debt in certain cases.--In 
     lieu of the requirements of paragraph (1) relating to the 
     ownership of capital stock in the national bank, the 
     Comptroller of the Currency may, by regulation or order, 
     permit an individual to serve as a director of a national 
     bank that has elected, or notifies the Comptroller of the 
     bank's intention to elect, to operate as a S corporation 
     pursuant to section 1362(a) of the Internal Revenue Code of 
     1986, if that individual holds debt of at least $1,000 issued 
     by the national bank that is subordinated to the interests of 
     depositors and other general creditors of the national 
     bank.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     one of title LXII of the Revised Statutes of the United 
     States (12 U.S.C. 21 et seq.) is amended by striking the item 
     relating to section 5146 and inserting the following new 
     item:


[[Page 3004]]


``5146. Requirements for bank directors.''.

     SEC. 102. VOTING IN SHAREHOLDER ELECTIONS.

       Section 5144 of the Revised Statutes of the United States 
     (12 U.S.C. 61) is amended--
       (1) by striking ``or to cumulate'' and inserting ``or, if 
     so provided by the articles of association of the national 
     bank, to cumulate'';
       (2) by striking the comma after ``his shares shall equal''; 
     and
       (3) by adding at the end the following new sentence: ``The 
     Comptroller of the Currency may prescribe such regulations to 
     carry out the purposes of this section as the Comptroller 
     determines to be appropriate.''.

     SEC. 103. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL 
                   BANKS.

       (a) In General.--Section 5199 of the Revised Statutes of 
     the United States (12 U.S.C. 60) is amended to read as 
     follows:

     ``SEC. 5199. NATIONAL BANK DIVIDENDS.

       ``(a) In General.--Subject to subsection (b), the directors 
     of any national bank may declare a dividend of so much of the 
     undivided profits of the bank as the directors judge to be 
     expedient.
       ``(b) Approval Required Under Certain Circumstances.--A 
     national bank may not declare and pay dividends in any year 
     in excess of an amount equal to the sum of the total of the 
     net income of the bank for that year and the retained net 
     income of the bank in the preceding two years, minus any 
     transfers required by the Comptroller of the Currency 
     (including any transfers required to be made to a fund for 
     the retirement of any preferred stock), unless the 
     Comptroller of the Currency approves the declaration and 
     payment of dividends in excess of such amount.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     three of title LXII of the Revised Statutes of the United 
     States is amended by striking the item relating to section 
     5199 and inserting the following new item:

``5199. National bank dividends.''.

     SEC. 104. REPEAL OF OBSOLETE LIMITATION ON REMOVAL AUTHORITY 
                   OF THE COMPTROLLER OF THE CURRENCY.

       Section 8(e)(4) of the Federal Deposit Insurance Act (12 
     U.S.C. 1818(e)(4)) is amended by striking the 5th sentence.

     SEC. 105. REPEAL OF INTRASTATE BRANCH CAPITAL REQUIREMENTS.

       Section 5155(c) of the Revised Statutes of the United 
     States (12 U.S.C. 36(c)) is amended--
       (1) in the 2nd sentence, by striking ``, without regard to 
     the capital requirements of this section,''; and
       (2) by striking the last sentence.

     SEC. 106. CLARIFICATION OF WAIVER OF PUBLICATION REQUIREMENTS 
                   FOR BANK MERGER NOTICES.

       The last sentence of sections 2(a) and 3(a)(2) of the 
     National Bank Consolidation and Merger Act (12 U.S.C. 215(a) 
     and 215a(a)(2), respectively) are each amended by striking 
     ``Publication of notice may be waived, in cases where the 
     Comptroller determines that an emergency exists justifying 
     such waiver, by unanimous action of the shareholders of the 
     association or State bank'' and inserting ``Publication of 
     notice may be waived if the Comptroller determines that an 
     emergency exists justifying such waiver or if the 
     shareholders of the association or State bank agree by 
     unanimous action to waive the publication requirement for 
     their respective institutions''.

     SEC. 107. EQUAL TREATMENT FOR FEDERAL AGENCIES OF FOREIGN 
                   BANKS.

       The 1st sentence of section 4(d) of the International 
     Banking Act of 1978 (12 U.S.C. 3102(d)) is amended by 
     inserting ``from citizens or residents of the United States'' 
     after ``deposits''.

     SEC. 108. MAINTENANCE OF A FEDERAL BRANCH AND A FEDERAL 
                   AGENCY IN THE SAME STATE.

       Section 4(e) of the International Banking Act of 1978 (12 
     U.S.C. 3102(e)) is amended by inserting ``if the maintenance 
     of both an agency and a branch in the State is prohibited 
     under the law of such State'' before the period at the end.

     SEC. 109. BUSINESS ORGANIZATION FLEXIBILITY FOR NATIONAL 
                   BANKS.

       (a) In General.--Chapter one of title LXII of the Revised 
     Statutes of the United States (12 U.S.C. 21 et seq.) is 
     amended by inserting after section 5136B the following new 
     section:

     ``SEC. 5136C. ALTERNATIVE BUSINESS ORGANIZATION.

       ``(a) In General.--The Comptroller of the Currency may 
     prescribe regulations--
       ``(1) to permit a national bank to be organized other than 
     as a body corporate; and
       ``(2) to provide requirements for the organizational 
     characteristics of a national bank organized and operating 
     other than as a body corporate, consistent with the safety 
     and soundness of the national bank.
       ``(b) Equal Treatment.--Except as provided in regulations 
     prescribed under subsection (a), a national bank that is 
     operating other than as a body corporate shall have the same 
     rights and privileges and shall be subject to the same 
     duties, restrictions, penalties, liabilities, conditions, and 
     limitations as a national bank that is organized as a body 
     corporate.''.
       (b) Technical and Conforming Amendment.--Section 5136 of 
     the Revised Statutes of the United States (12 U.S.C. 24) is 
     amended, in the matter preceding the paragraph designated as 
     the ``First'', by inserting ``or other form of business 
     organization provided under regulations prescribed by the 
     Comptroller of the Currency under section 5136C'' after ``a 
     body corporate''.
       (c) Clerical Amendment.--The table of sections for chapter 
     one of title LXII of the Revised Statutes of the United 
     States (12 U.S.C. 21 et seq.) is amended by inserting after 
     the item relating to section 5136B the following new item:

``5136C. Alternative business organization.''.

     SEC. 110. CLARIFICATION OF THE MAIN PLACE OF BUSINESS OF A 
                   NATIONAL BANK.

       Title LXII of the Revised Statutes of the United States is 
     amended--
       (1) in the paragraph designated the ``Second'' of section 
     5134 (12 U.S.C. 22), by striking ``The place where its 
     operations of discount and deposit are to be carried on'' and 
     inserting ``The place where the main office of the national 
     bank is, or is to be, located''; and
       (2) in section 5190 (12 U.S.C. 81), by striking ``the place 
     specified in its organization certificate'' and inserting 
     ``the main office of the national bank''.

     SEC. 111. CAPITAL EQUIVALENCY DEPOSITS FOR FEDERAL BRANCHES 
                   AND AGENCIES OF FOREIGN BANKS.

       Section 4(g) of the International Banking Act of 1978 (12 
     U.S.C. 3102(g)) is amended to read as follows:
       ``(g) Capital Equivalency Deposit.--
       ``(1) In general.--Upon the opening of a Federal branch or 
     agency of a foreign bank in any State and thereafter, the 
     foreign bank, in addition to any deposit requirements imposed 
     under section 6, shall keep on deposit, in accordance with 
     such regulations as the Comptroller of the Currency may 
     prescribe in accordance with paragraph (2), dollar deposits, 
     investment securities, or other assets in such amounts as the 
     Comptroller of the Currency determines to be necessary for 
     the protection of depositors and other investors and to be 
     consistent with the principles of safety and soundness.
       ``(2) Limitation.--Notwithstanding paragraph (1), 
     regulations prescribed under such paragraph shall not permit 
     a foreign bank to keep assets on deposit in an amount that is 
     less than the amount required for a State licensed branch or 
     agency of a foreign bank under the laws and regulations of 
     the State in which the Federal agency or branch is 
     located.''.

     SEC. 112. ENHANCING THE AUTHORITY FOR NATIONAL BANKS TO MAKE 
                   COMMUNITY DEVELOPMENT INVESTMENTS.

       The last sentence in the paragraph designated as the 
     ``Eleventh.'' of section 5136 of the Revised Statutes of the 
     United States (12 U.S.C. 24) is amended by striking ``10 
     percent'' each place such term appears and inserting ``15 
     percent''.

                TITLE II--SAVINGS ASSOCIATION PROVISIONS

     SEC. 201. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE 
                   SECURITIES EXCHANGE ACT OF 1934 AND THE 
                   INVESTMENT ADVISERS ACT OF 1940.

       (a) Securities Exchange Act of 1934.--
       (1) Definition of bank.--Section 3(a)(6) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended--
       (A) in subparagraph (A), by inserting ``or a Federal 
     savings association, as defined in section 2(5) of the Home 
     Owners' Loan Act'' after ``a banking institution organized 
     under the laws of the United States''; and
       (B) in subparagraph (C)--
       (i) by inserting ``or savings association as defined in 
     section 2(4) of the Home Owners' Loan Act,'' after ``banking 
     institution,''; and
       (ii) by inserting ``or savings associations'' after 
     ``having supervision over banks''.
       (2) Include ots under the definition of appropriate 
     regulatory agency for certain purposes.--Section 3(a)(34) of 
     such Act (15 U.S.C. 78c(a)(34)) is amended--
       (A) in subparagraph (A)--
       (i) in clause (ii), by striking ``(i) or (iii)'' and 
     inserting ``(i), (iii), or (iv)'';
       (ii) by striking ``and'' at the end of clause (iii);
       (iii) by redesignating clause (iv) as clause (v); and
       (iv) by inserting the following new clause after clause 
     (iii):
       ``(iv) the Director of the Office of Thrift Supervision, in 
     the case of a savings association (as defined in section 3(b) 
     of the Federal Deposit Insurance Act (12 U.S.C. 1813(b))) the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation, a subsidiary or a department or 
     division of any such savings association, or a savings and 
     loan holding company; and'';
       (B) in subparagraph (B)--
       (i) in clause (ii), by striking ``(i) or (iii)'' and 
     inserting ``(i), (iii), or (iv)'';
       (ii) by striking ``and'' at the end of clause (iii);
       (iii) by redesignating clause (iv) as clause (v); and
       (iv) by inserting the following new clause after clause 
     (iii):
       ``(iv) the Director of the Office of Thrift Supervision, in 
     the case of a savings association (as defined in section 3(b) 
     of the Federal Deposit Insurance Act (12 U.S.C. 1813(b))) the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation, or a subsidiary of any such savings 
     association, or a savings and loan holding company; and'';
       (C) in subparagraph (C)--
       (i) in clause (ii), by striking ``(i) or (iii)'' and 
     inserting ``(i), (iii), or (iv)'';
       (ii) by striking ``and'' at the end of clause (iii);
       (iii) by redesignating clause (iv) as clause (v); and
       (iv) by inserting the following new clause after clause 
     (iii):
       ``(iv) the Director of the Office of Thrift Supervision, in 
     the case of a savings association

[[Page 3005]]

     (as defined in section 3(b) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(b))) the deposits of which are insured by 
     the Federal Deposit Insurance Corporation, a savings and loan 
     holding company, or a subsidiary of a savings and loan 
     holding company when the appropriate regulatory agency for 
     such clearing agency is not the Commission; and'';
       (D) in subparagraph (D)--
       (i) by striking ``and'' at the end of clause (ii);
       (ii) by redesignating clause (iii) as clause (iv); and
       (iii) by inserting the following new clause after clause 
     (ii):
       ``(iii) the Director of the Office of Thrift Supervision, 
     in the case of a savings association (as defined in section 
     3(b) of the Federal Deposit Insurance Act (12 U.S.C. 
     1813(b))) the deposits of which are insured by the Federal 
     Deposit Insurance Corporation; and'';
       (E) in subparagraph (F)--
       (i) by redesignating clauses (ii), (iii), and (iv) as 
     clauses (iii), (iv), and (v), respectively; and
       (ii) by inserting the following new clause after clause 
     (i):
       ``(ii) the Director of the Office of Thrift Supervision, in 
     the case of a savings association (as defined in section 3(b) 
     of the Federal Deposit Insurance Act (12 U.S.C. 1813(b))) the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation; and'';
       (F) by moving subparagraph (H) and inserting such 
     subparagraph after subparagraph (G); and
       (G) by adding at the end the following new sentence: ``As 
     used in this paragraph, the term `savings and loan holding 
     company' has the meaning given it in section 10(a) of the 
     Home Owners' Loan Act (12 U.S.C. 1467a(a)).''.
       (b) Investment Advisers Act of 1940.--
       (1) Definition of bank.--Section 202(a)(2) of the 
     Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(2)) is 
     amended--
       (A) in subparagraph (A) by inserting ``or a Federal savings 
     association, as defined in section 2(5) of the Home Owners' 
     Loan Act'' after ``a banking institution organized under the 
     laws of the United States''; and
       (B) in subparagraph (C)--
       (i) by inserting ``, savings association as defined in 
     section 2(4) of the Home Owners' Loan Act,'' after ``banking 
     institution''; and
       (ii) by inserting ``or savings associations'' after 
     ``having supervision over banks''.
       (2) Conforming amendments.--Subsections (a)(1)(A)(i), 
     (a)(1)(B), (a)(2), and (b) of section 210A of such Act (15 
     U.S.C. 80b-10a), as added by section 220 of the Gramm-Leach-
     Bliley Act, are each amended by striking ``bank holding 
     company'' each place it occurs and inserting ``bank holding 
     company or savings and loan holding company''.
       (c) Conforming Amendment to the Investment Company Act of 
     1940.--Section 10(c) of the Investment Company Act of 1940 
     (15 U.S.C. 80a-10(c)), as amended by section 213(c) of the 
     Gramm-Leach-Bliley Act, is amended by inserting after 
     ``1956)'' the following: ``or any one savings and loan 
     holding company (together with its affiliates and 
     subsidiaries) (as such terms are defined in section 10 of the 
     Home Owners' Loan Act)''.

     SEC. 202. INVESTMENTS BY FEDERAL SAVINGS ASSOCIATIONS 
                   AUTHORIZED TO PROMOTE THE PUBLIC WELFARE.

       (a) In General.--Section 5(c)(3) of the Home Owners' Loan 
     Act (12 U.S.C. 1464(c)) is amended by adding at the end the 
     following new subparagraph:
       ``(D) Direct investments to promote the public welfare.--
       ``(i) In general.--A Federal savings association may make 
     investments designed primarily to promote the public welfare, 
     including the welfare of low- and moderate-income communities 
     or families through the provision of housing, services, and 
     jobs.
       ``(ii) Direct investments or acquisition of interest in 
     other companies.--Investments under clause (i) may be made 
     directly or by purchasing interests in an entity primarily 
     engaged in making such investments.
       ``(iii) Prohibition on unlimited liability.--No investment 
     may be made under this subparagraph which would subject a 
     Federal savings association to unlimited liability to any 
     person.
       ``(iv) Single investment limitation to be established by 
     director.--Subject to clauses (v) and (vi), the Director 
     shall establish, by order or regulation, limits on--

       ``(I) the amount any savings association may invest in any 
     1 project; and
       ``(II) the aggregate amount of investment of any savings 
     association under this subparagraph.

       ``(v) Flexible aggregate investment limitation.--The 
     aggregate amount of investments of any savings association 
     under this subparagraph may not exceed an amount equal to the 
     sum of 5 percent of the savings association's capital stock 
     actually paid in and unimpaired and 5 percent of the savings 
     association's unimpaired surplus, unless--

       ``(I) the Director determines that the savings association 
     is adequately capitalized; and
       ``(II) the Director determines, by order, that the 
     aggregate amount of investments in a higher amount than the 
     limit under this clause will pose no significant risk to the 
     affected deposit insurance fund.

       ``(vi) Maximum aggregate investment limitation.--
     Notwithstanding clause (v), the aggregate amount of 
     investments of any savings association under this 
     subparagraph may not exceed an amount equal to the sum of 15 
     percent of the savings association's capital stock actually 
     paid in and unimpaired and 15 percent of the savings 
     association's unimpaired surplus.
       ``(vii) Investments not subject to other limitation on 
     quality of investments.--No obligation a Federal savings 
     association acquires or retains under this subparagraph shall 
     be taken into account for purposes of the limitation 
     contained in section 28(d) of the Federal Deposit Insurance 
     Act on the acquisition and retention of any corporate debt 
     security not of investment grade.''.
       (b) Technical and Conforming Amendment.--Section 5(c)(3)(A) 
     of the Home Owners' Loan Act (12 U.S.C. 1464(c)(3)(A)) is 
     amended to read as follows:
       ``(A) [Repealed].''.

     SEC. 203. MERGERS AND CONSOLIDATIONS OF FEDERAL SAVINGS 
                   ASSOCIATIONS WITH NONDEPOSITORY INSTITUTION 
                   AFFILIATES.

       Section 5(d)(3) of the Home Owners' Loan Act (12 U.S.C. 
     1464(d)(3)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Mergers and consolidations with nondepository 
     institution affiliates.--
       ``(i) In general.--Upon the approval of the Director, a 
     Federal savings association may merge with any nondepository 
     institution affiliate of the savings association.
       ``(ii) Rule of construction.--No provision of clause (i) 
     shall be construed as--

       ``(I) affecting the applicability of section 18(c) of the 
     Federal Deposit Insurance Act; or
       ``(II) granting a Federal savings association any power or 
     any authority to engage in any activity that is not 
     authorized for a Federal savings association under any other 
     provision of this Act or any other provision of law.''.

     SEC. 204. REPEAL OF STATUTORY DIVIDEND NOTICE REQUIREMENT FOR 
                   SAVINGS ASSOCIATION SUBSIDIARIES OF SAVINGS AND 
                   LOAN HOLDING COMPANIES.

       Section 10(f) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(f)) is amended to read as follows:
       ``(f) Declaration of Dividend.--The Director may--
       ``(1) require a savings association that is a subsidiary of 
     a savings and loan holding company to give prior notice to 
     the Director of the intent of the savings association to pay 
     a dividend on its guaranty, permanent, or other 
     nonwithdrawable stock; and
       ``(2) establish conditions on the payment of dividends by 
     such a savings association.''.

     SEC. 205. MODERNIZING STATUTORY AUTHORITY FOR TRUST OWNERSHIP 
                   OF SAVINGS ASSOCIATIONS.

       (a) In General.--Section 10(a)(1)(C) of the Home Owners' 
     Loan Act (12 U.S.C. 1467a(a)(1)(C)) is amended--
       (1) by striking ``trust,'' and inserting ``business 
     trust,''; and
       (2) by inserting ``or any other trust unless by its terms 
     it must terminate within 25 years or not later than 21 years 
     and 10 months after the death of individuals living on the 
     effective date of the trust,'' after ``or similar 
     organization,''.
       (b) Technical and Conforming Amendment.--Section 10(a)(3) 
     of the Home Owners' Loan Act (12 U.S.C. 1467a(a)(3)) is 
     amended--
       (1) by striking ``does not include--'' and all that follows 
     through ``any company by virtue'' where such term appears in 
     subparagraph (A) and inserting ``does not include any company 
     by virtue'';
       (2) by striking ``; and'' at the end of subparagraph (A) 
     and inserting a period; and
       (3) by striking subparagraph (B).

     SEC. 206. REPEAL OF OVERLAPPING RULES GOVERNING PURCHASED 
                   MORTGAGE SERVICING RIGHTS.

       Section 5(t) of the Home Owners' Loan Act (12 U.S.C. 
     1464(t)) is amended--
       (1) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) [Repealed].''; and
       (2) in paragraph (9)(A), by striking ``intangible assets, 
     plus'' and all that follows through the period at the end and 
     inserting ``intangible assets.''.

     SEC. 207. RESTATEMENT OF AUTHORITY FOR FEDERAL SAVINGS 
                   ASSOCIATIONS TO INVEST IN SMALL BUSINESS 
                   INVESTMENT COMPANIES.

       Subparagraph (D) of section 5(c)(4) of the Home Owners' 
     Loan Act (12 U.S.C. 1464(c)(4)) is amended to read as 
     follows:
       ``(D) Small business investment companies.--Any Federal 
     savings association may invest in 1 or more small business 
     investment companies, or in any entity established to invest 
     solely in small business investment companies formed under 
     the Small Business Investment Act of 1958, except that the 
     total amount of investments under this subparagraph may not 
     at any time exceed the amount equal to 5 percent of capital 
     and surplus of the savings association.''.

     SEC. 208. REMOVAL OF LIMITATION ON INVESTMENTS IN AUTO LOANS.

       (a) In General.--Section 5(c)(1) of the Home Owners' Loan 
     Act (12 U.S.C. 1464(c)(1)) is amended by adding at the end 
     the following new subparagraph:
       ``(V) Auto loans.--Loans and leases for motor vehicles 
     acquired for personal, family, or household purposes.''.
       (b) Technical and Conforming Amendment Relating to 
     Qualified Thrift Investments.--Section 10(m)(4)(C)(ii) of the 
     Home Owners' Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii)) is 
     amended by adding at the end the following new subclause:

[[Page 3006]]

       ``(VIII) Loans and leases for motor vehicles acquired for 
     personal, family, or household purposes.''.

     SEC. 209. SELLING AND OFFERING OF DEPOSIT PRODUCTS.

       Section 15(h) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o(h)) is amended by adding at the end the following 
     new paragraph:
       ``(4) Selling and offering of deposit products.--No law, 
     rule, regulation, or order, or other administrative action of 
     any State or political subdivision thereof shall directly or 
     indirectly require any individual who is an agent of 1 
     Federal savings association (as such term is defined in 
     section 2(5) of the Home Owners' Loan Act (12 U.S.C. 1462(5)) 
     in selling or offering deposit (as such term is defined in 
     section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
     1813(l)) products issued by such association to qualify or 
     register as a broker, dealer, associated person of a broker, 
     or associated person of a dealer, or to qualify or register 
     in any other similar status or capacity, if the individual 
     does not--
       ``(A) accept deposits or make withdrawals on behalf of any 
     customer of the association;
       ``(B) offer or sell a deposit product as an agent for 
     another entity that is not subject to supervision and 
     examination by a Federal banking agency (as defined in 
     section 3(z) of the Federal Deposit Insurance Act (12 U.S.C. 
     1813(z)), the National Credit Union Administration, or any 
     officer, agency, or other entity of any State which has 
     primary regulatory authority over State banks, State savings 
     associations, or State credit unions;
       ``(C) offer or sell a deposit product that is not an 
     insured deposit (as defined in section 3(m) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(m)));
       ``(D) offer or sell a deposit product which contains a 
     feature that makes it callable at the option of such Federal 
     savings association; or
       ``(E) create a secondary market with respect to a deposit 
     product or otherwise add enhancements or features to such 
     product independent of those offered by the association.''.

     SEC. 210. FUNERAL- AND CEMETERY-RELATED FIDUCIARY SERVICES.

       Section 5(n) of the Home Owners' Loan Act (12 U.S.C. 
     1464(n)) is amended by adding at the end the following new 
     paragraph:
       ``(11) Funeral- and cemetery-related fiduciary services.--
       ``(A) In general.--A funeral director or cemetery operator, 
     when acting in such capacity, (or any other person in 
     connection with a contract or other agreement with a funeral 
     director or cemetery operator) may engage any Federal savings 
     association, regardless of where the association is located, 
     to act in any fiduciary capacity in which the savings 
     association has the right to act in accordance with this 
     section, including holding funds deposited in trust or escrow 
     by the funeral director or cemetery operator (or by such 
     other party), and the savings association may act in such 
     fiduciary capacity on behalf of the funeral director or 
     cemetery operator (or such other person).
       ``(B) Definitions.--For purposes of this paragraph, the 
     following definitions shall apply:
       ``(i) Cemetery.--The term `cemetery' means any land or 
     structure used, or intended to be used, for the interment of 
     human remains in any form.
       ``(ii) Cemetery operator.--The term `cemetery operator' 
     means any person who contracts or accepts payment for 
     merchandise, endowment, or perpetual care services in 
     connection with a cemetery.
       ``(iii) Funeral director.--The term `funeral director' 
     means any person who contracts or accepts payment to provide 
     or arrange--

       ``(I) services for the final disposition of human remains; 
     or
       ``(II) funeral services, property, or merchandise 
     (including cemetery services, property, or merchandise).''.

     SEC. 211. REPEAL OF QUALIFIED THRIFT LENDER REQUIREMENT WITH 
                   RESPECT TO OUT-OF-STATE BRANCHES.

       Section 5(r)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(r)(1)) is amended by striking the last sentence.

     SEC. 212. SMALL BUSINESS AND OTHER COMMERCIAL LOANS.

       (a) Elimination of Lending Limit on Small Business Loans.--
     Section 5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(c)(1)) is amended by inserting after subparagraph (V) 
     (as added by section 208 of this title) the following new 
     subparagraph:
       ``(W) Small business loans.--Small business loans, as 
     defined in regulations which the Director shall prescribe.''.
       (b) Increase in Lending Limit on Other Business Loans.--
     Section 5(c)(2)(A) of the Home Owners' Loan Act (12 U.S.C. 
     1464(c)(2)(A)) is amended by striking ``, and amounts in 
     excess of 10 percent'' and all that follows through ``by the 
     Director''.

     SEC. 213. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS 
                   ASSOCIATIONS FOR FEDERAL COURT JURISDICTION.

       Section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) is 
     amended by adding at the end the following new subsection:
       ``(x) Home State Citizenship.--In determining whether a 
     Federal court has diversity jurisdiction over a case in which 
     a Federal savings association is a party, the Federal savings 
     association shall be considered to be a citizen only of the 
     States in which such savings association has its home office 
     and its principal place of business (if the principal place 
     of business is in a different State than the home office).''.

     SEC. 214. INCREASE IN LIMITS ON COMMERCIAL REAL ESTATE LOANS.

       Section 5(c)(2)(B)(i) of the Home Owners' Loan Act (12 
     U.S.C. 1464(c)(2)(B)(i)) is amended by striking ``400 
     percent'' and inserting ``500 percent''.

     SEC. 215. REPEAL OF ONE LIMIT ON LOANS TO ONE BORROWER.

       Subparagraph (A) of section 5(u)(2) of the Home Owners' 
     Loan Act (12 U.S.C. 1464(u)(2)(A)) is amended--
       (1) by striking subclause (I) of clause (ii);
       (2) by redesignating subclauses (II), (III), (IV), and (V) 
     of clause (ii) as subclauses (I), (II), (III), and (IV), 
     respectively;
       (3) in clause (i)--
       (A) by striking ``for any'' and inserting ``For any''; and
       (B) by striking ``; or'' and inserting a period; and
       (4) in clause (ii), by striking ``to develop domestic'' and 
     inserting ``To develop domestic''.

     SEC. 216. SAVINGS ASSOCIATION CREDIT CARD BANKS.

       Section 10(a)(1)(A) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(a)(1)(A)) is amended by inserting ``and such term does 
     not include an institution described in section 2(c)(2)(F) of 
     the Bank Holding Company Act of 1956 for purposes of 
     subsections (a)(1)(E), (c)(3)(B)(i), (c)(9)(C)(i), and 
     (e)(3)'' before the period at the end.

     SEC. 217. INTERSTATE ACQUISITIONS BY S&L HOLDING COMPANIES.

       Section 10(e)(3) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(e)(3)) is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as 
     subparagraphs (B), (C), and (D), respectively; and
       (2) by inserting before subparagraph (B) (as so 
     redesignated) the following new subparagraph:
       ``(A) such acquisition would be permissible under section 
     3(d) of the Bank Holding Company Act of 1956 if the savings 
     and loan holding company were a bank holding company and any 
     savings association to be acquired were a bank;''.

     SEC. 218. BUSINESS ORGANIZATION FLEXIBILITY FOR FEDERAL 
                   SAVINGS ASSOCIATIONS.

       (a) In General.--Section 5 of the Home Owners' Loan Act (12 
     U.S.C. 1464) is amended by inserting after subsection (x) (as 
     added by section 213) following new subsection:
       ``(y) Alternative Business Organization.--
       ``(1) In general.--The Director may prescribe regulations 
     that--
       ``(A) permit a Federal savings association to be organized 
     other than as a corporation; and
       ``(B) provide requirements for the organizational 
     characteristics of a Federal savings association organized 
     and operating other than as a corporation, consistent with 
     the safety and soundness of the Federal savings association.
       ``(2) Equal treatment.--Except as otherwise provided in 
     regulations prescribed under subsection (1), a Federal 
     savings association that is operating other than as a 
     corporation shall have the same rights and privileges and 
     shall be subject to the same duties, restrictions, penalties, 
     liabilities, conditions, and limitations as a Federal savings 
     association that is organized as a corporation.''.
       (b) Technical and Conforming Amendments.--
       (1) Section 5(a)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(a)(1)) is amended by striking ``organization, 
     incorporation,'' and inserting ``organization (as a 
     corporation or other form of business organization provided 
     under regulations prescribed by the Director under subsection 
     (x)),''.
       (2) The last sentence of section 5(i)(1) of the Home 
     Owners' Loan Act (12 U.S.C. 1464(i)(1)) is amended by 
     striking ``incorporated'' and inserting ``organized''.
       (3) Section 5(o)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(a)(1)) is amended by striking ``organization, 
     incorporation,'' and inserting ``organization (as a 
     corporation or other form of business organization provided 
     under regulations prescribed by the Director under subsection 
     (x)),''.

                   TITLE III--CREDIT UNION PROVISIONS

     SEC. 301. PRIVATELY INSURED CREDIT UNIONS AUTHORIZED TO 
                   BECOME MEMBERS OF A FEDERAL HOME LOAN BANK.

       (a) In General.--Section 4(a) of the Federal Home Loan Bank 
     Act (12 U.S.C. 1424(a)) is amended by adding at the end the 
     following new paragraph:
       ``(5) Certain privately insured credit unions.--
       ``(A) In general.--A credit union which has been 
     determined, in accordance with section 43(e)(1) of the 
     Federal Deposit Insurance Act and subject to the requirements 
     of subparagraph (B), to meet all eligibility requirements for 
     Federal deposit insurance shall be treated as an insured 
     depository institution for purposes of determining the 
     eligibility of such credit union for membership in a Federal 
     home loan bank under paragraphs (1), (2), and (3).
       ``(B) Certification by appropriate supervisor.--
       ``(i) In general.--For purposes of this paragraph and 
     subject to clause (ii), a credit union which lacks Federal 
     deposit insurance and which has applied for membership in a 
     Federal home loan bank may be treated as meeting all the 
     eligibility requirements for Federal deposit insurance only 
     if the appropriate supervisor of the State in which the 
     credit union is chartered has determined that the credit 
     union meets all the eligibility requirements for Federal 
     deposit insurance as of the date of the application for 
     membership.

[[Page 3007]]

       ``(ii) Certification deemed valid.--If, in the case of any 
     credit union to which clause (i) applies, the appropriate 
     supervisor of the State in which such credit union is 
     chartered fails to make a determination pursuant to such 
     clause by the end of the 6-month period beginning on the date 
     of the application, the credit union shall be deemed to have 
     met the requirements of clause (i).
       ``(C) Security interests of federal home loan bank not 
     avoidable.--Notwithstanding any provision of State law 
     authorizing a conservator or liquidating agent of a credit 
     union to repudiate contracts, no such provision shall apply 
     with respect to--
       ``(i) any extension of credit from any Federal home loan 
     bank to any credit union which is a member of any such bank 
     pursuant to this paragraph; or
       ``(ii) any security interest in the assets of such credit 
     union securing any such extension of credit.''.
       (b) Copies of Audits of Private Insurers of Certain 
     Depository Institutions Required to Be Provided to 
     Supervisory Agencies.--Section 43(a)(2) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1831t(a)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (A)(i);
       (2) by striking the period at the end of clause (ii) of 
     subparagraph (A) and inserting a semicolon;
       (3) by inserting the following new clauses at the end of 
     subparagraph (A):
       ``(iii) in the case of depository institutions described in 
     subsection (f)(2)(A) the deposits of which are insured by the 
     private insurer, the National Credit Union Administration, 
     not later than 7 days after that audit is completed; and
       ``(iv) in the case of depository institutions described in 
     subsection (f)(2)(A) the deposits of which are insured by the 
     private insurer which are members of a Federal home loan 
     bank, the Federal Housing Finance Board, not later than 7 
     days after that audit is completed.''; and
       (4) by adding at the end the following new subparagraph:
       ``(C) Consultation.--The appropriate supervisory agency of 
     each State in which a private deposit insurer insures 
     deposits in an institution described in subsection (f)(2)(A) 
     which--
       ``(i) lacks Federal deposit insurance; and
       ``(ii) has become a member of a Federal home loan bank,

     shall provide the National Credit Union Administration, upon 
     request, with the results of any examination and reports 
     related thereto concerning the private deposit insurer to 
     which such agency may have in its possession.''.

     SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT 
                   UNIONS.

       (a) In General.--Section 124 of the Federal Credit Union 
     Act (12 U.S.C. 1770) is amended--
       (1) by striking ``Upon application by any credit union'' 
     and inserting ``Notwithstanding any other provision of law, 
     upon application by any credit union'';
       (2) by inserting ``on lands reserved for the use of, and 
     under the exclusive or concurrent jurisdiction of, the United 
     States or'' after ``officer or agency of the United States 
     charged with the allotment of space'';
       (3) by inserting ``lease land or'' after ``such officer or 
     agency may in his or its discretion''; and
       (4) by inserting ``or the facility built on the lease 
     land'' after ``credit union to be served by the allotment of 
     space''.
       (b) Clerical Amendment.--The heading for section 124 is 
     amended by inserting ``or federal land'' after ``buildings''.

     SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CREDIT UNIONS.

       Section 107 of the Federal Credit Union Act (12 U.S.C. 
     1757) is amended--
       (1) in the matter preceding paragraph (1) by striking ``A 
     Federal credit union'' and inserting ``(a) In General.--Any 
     Federal credit union''; and
       (2) by adding at the end the following new subsection:
       ``(b) Additional Investment Authority.--
       ``(1) In general.--In addition to any investments otherwise 
     authorized, a Federal credit union may purchase and hold for 
     its own account such investment securities of investment 
     grade as the Board may authorize by regulation, subject to 
     such limitations and restrictions as the Board may prescribe 
     in the regulations.
       ``(2) Percentage limitations.--
       ``(A) Single obligor.--In no event may the total amount of 
     investment securities of any single obligor or maker held by 
     a Federal credit union for the credit union's own account 
     exceed at any time an amount equal to 10 percent of the net 
     worth of the credit union.
       ``(B) Aggregate investments.--In no event may the aggregate 
     amount of investment securities held by a Federal credit 
     union for the credit union's own account exceed at any time 
     an amount equal to 10 percent of the assets of the credit 
     union.
       ``(3) Investment security defined.--
       ``(A) In general.--For purposes of this subsection, the 
     term `investment security' means marketable obligations 
     evidencing the indebtedness of any person in the form of 
     bonds, notes, or debentures and other instruments commonly 
     referred to as investment securities.
       ``(B) Further definition by board.--The Board may further 
     define the term `investment security'.
       ``(4) Investment grade defined.--The term `investment 
     grade' means with respect to an investment security purchased 
     by a credit union for its own account, an investment security 
     that at the time of such purchase is rated in one of the 4 
     highest rating categories by at least 1 nationally recognized 
     statistical rating organization.
       ``(5) Clarification of prohibition on stock ownership.--No 
     provision of this subsection shall be construed as 
     authorizing a Federal credit union to purchase shares of 
     stock of any corporation for the credit union's own account, 
     except as otherwise permitted by law.''.

     SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF 
                   FEDERAL CREDIT UNION LOANS TO 15 YEARS.

       Section 107(a)(5) of the Federal Credit Union Act (12 
     U.S.C. 1757(5)) (as so designated by section 303 of this 
     title) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``to make loans, the maturities of which shall not exceed 
     twelve years except as otherwise provided herein'' and 
     inserting ``to make loans, the maturities of which shall not 
     exceed 15 years or any longer maturity as the Board may 
     allow, in regulations, except as otherwise provided in this 
     Act'';
       (2) in subparagraph (A)--
       (A) by striking clause (ii);
       (B) by redesignating clauses (iii) through (x) as clauses 
     (ii) through (ix), respectively; and
       (C) by inserting ``and'' after the semicolon at the end of 
     clause (viii) (as so redesignated).

     SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN CREDIT 
                   UNION SERVICE ORGANIZATIONS.

       Section 107(a)(7)(I) of the Federal Credit Union Act (12 
     U.S.C. 1757(7)(I)) (as so designated by section 303 of this 
     title) is amended by striking ``up to 1 per centum of the 
     total paid'' and inserting ``up to 3 percent of the total 
     paid''.

     SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO 
                   NONPROFIT RELIGIOUS ORGANIZATIONS.

       Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 
     1757a(a)) is amended by inserting ``, excluding loans made to 
     nonprofit religious organizations,'' after ``total amount of 
     such loans''.

     SEC. 307. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED 
                   WITHIN THE FIELD OF MEMBERSHIP.

       Paragraph (12) of section 107(a) of the Federal Credit 
     Union Act (12 U.S.C. 1757(12)) (as so designated by section 
     303 of this title) is amended to read as follows:
       ``(12) in accordance with regulations prescribed by the 
     Board--
       ``(A) to sell, to persons in the field of membership, 
     negotiable checks (including travelers checks), money orders, 
     and other similar money transfer instruments (including 
     international and domestic electronic fund transfers); and
       ``(B) to cash checks and money orders and receive 
     international and domestic electronic fund transfers for 
     persons in the field of membership for a fee;''.

     SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE COMMON-BOND 
                   CREDIT UNIONS.

       Section 109(d)(2) of the Federal Credit Union Act (12 
     U.S.C. 1759(d)(2)) is amended--
       (1) by striking ``or'' at the end of clause (ii) of 
     subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(D) a merger involving any such Federal credit union 
     approved by the Board on or after August 7, 1998.''.

     SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CREDIT UNIONS.

       Section 109(g) of the Federal Credit Union Act (12 U.S.C. 
     1759(g)) is amended by inserting after paragraph (2) the 
     following new paragraph:
       ``(3) Criteria for continued membership of certain member 
     groups in community charter conversions.--In the case of a 
     voluntary conversion of a common-bond credit union described 
     in paragraph (1) or (2) of subsection (b) into a community 
     credit union described in subsection (b)(3), the Board shall 
     prescribe, by regulation, the criteria under which the Board 
     may determine that a member group or other portion of a 
     credit union's existing membership, that is located outside 
     the well-defined local community, neighborhood, or rural 
     district that shall constitute the community charter, can be 
     satisfactorily served by the credit union and remain within 
     the community credit union's field of membership.''.

     SEC. 310. CREDIT UNION GOVERNANCE.

       (a) Expulsion of Members for Just Cause.--Subsection (b) of 
     section 118 of the Federal Credit Union Act (12 U.S.C. 
     1764(b)) is amended to read as follows:
       ``(b) Policy and Actions of Boards of Directors of Federal 
     Credit Unions.--
       ``(1) Expulsion of members for nonparticipation or for just 
     cause.--The board of directors of a Federal credit union may, 
     by majority vote of a quorum of directors, adopt and enforce 
     a policy with respect to expulsion from membership, by a 
     majority vote of such board of directors, based on just 
     cause, including disruption of credit union operations, or on 
     nonparticipation by a member in the affairs of the credit 
     union.
       ``(2) Written notice of policy to members.--If a policy 
     described in paragraph (1) is adopted, written notice of the 
     policy as adopted and the effective date of such policy shall 
     be provided to--
       ``(A) each existing member of the credit union not less 
     than 30 days prior to the effective date of such policy; and
       ``(B) each new member prior to or upon applying for 
     membership.''.
       (b) Term Limits Authorized for Board Members of Federal 
     Credit Unions.--Section

[[Page 3008]]

     111(a) of the Federal Credit Union Act (12 U.S.C. 1761(a)) is 
     amended by adding at the end the following new sentence: 
     ``The bylaws of a Federal credit union may limit the number 
     of consecutive terms any person may serve on the board of 
     directors of such credit union.''.
       (c) Reimbursement for Lost Wages Due to Service on Credit 
     Union Board not Treated as Compensation.--Section 111(c) of 
     the Federal Credit Union Act (12 U.S.C. 1761(c)) is amended 
     by inserting ``, including lost wages,'' after ``the 
     reimbursement of reasonable expenses''.

     SEC. 311. PROVIDING THE NATIONAL CREDIT UNION ADMINISTRATION 
                   WITH GREATER FLEXIBILITY IN RESPONDING TO 
                   MARKET CONDITIONS.

       Section 107(a)(5)(A)(v)(I) of the Federal Credit Union Act 
     (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated by section 
     303 and redesignated by section 304(2)(B) of this title) is 
     amended by striking ``six-month period and that prevailing 
     interest rate levels'' and inserting ``6-month period or that 
     prevailing interest rate levels''.

     SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION REQUIREMENT 
                   OF THE CLAYTON ACT.

       Section 7A(c)(7) of the Clayton Act (15 U.S.C. 18a(c)(7)) 
     is amended by inserting ``section 205(b)(3) of the Federal 
     Credit Union Act (12 U.S.C. 1785(b)(3)),'' before ``or 
     section 3''.

     SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY 
                   INSTITUTIONS UNDER SECURITIES LAWS.

       (a) Definition of Bank Under the Securities Exchange Act of 
     1934.--Section 3(a)(6) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78c(a)(6)) (as amended by section 201(a)(1) of 
     this Act) is amended--
       (1) by striking ``this title, and (D) a receiver'' and 
     inserting ``this title, (D) an insured credit union (as 
     defined in section 101(7) of the Federal Credit Union Act) 
     but only for purposes of paragraphs (4) and (5) of this 
     subsection and only for activities otherwise authorized by 
     applicable laws to which such credit unions are subject, and 
     (E) a receiver''; and
       (2) in subparagraph (E) (as so redesignated by paragraph 
     (1) of this subsection) by striking ``(A), (B), or (C)'' and 
     inserting ``(A), (B), (C), or (D)''.
       (b) Definition of Bank Under the Investment Advisers Act of 
     1940.--Section 202(a)(2) of the Investment Advisers Act of 
     1940 (15 U.S.C. 80b-2(a)(2)) (as amended by section 201(b)(1) 
     of this Act) is amended--
       (1) by striking ``this title, and (D) a receiver'' and 
     inserting ``this title, (D) an insured credit union (as 
     defined in section 101(7) of the Federal Credit Union Act) 
     but only for activities otherwise authorized by applicable 
     laws to which such credit unions are subject, and (E) a 
     receiver''; and
       (2) in subparagraph (E) (as so redesignated by paragraph 
     (1) of this subsection) by striking ``(A), (B), or (C)'' and 
     inserting ``(A), (B), (C), or (D)''.
       (c) Definition of Appropriate Federal Banking Agency.--
     Section 210A(c) of the Investment Advisers Act of 1940 (15 
     U.S.C. 80b-10a(c)) is amended by inserting ``and includes the 
     National Credit Union Administration Board, in the case of an 
     insured credit union (as defined in section 101(7) of the 
     Federal Credit Union Act)'' before the period at the end.

     SEC. 314. CLARIFICATION OF DEFINITION OF NET WORTH UNDER 
                   CERTAIN CIRCUMSTANCES FOR PURPOSES OF PROMPT 
                   CORRECTIVE ACTION.

       Subparagraph (A) of section 216(o)(2) of the Federal Credit 
     Union Act (12 U.S.C. 1790d(o)(2)(A)) is amended--
       (1) by inserting ``the'' before ``retained earnings 
     balance''; and
       (2) by inserting ``, together with any amounts that were 
     previously retained earnings of any other credit union with 
     which the credit union has combined'' before the semicolon at 
     the end.

     SEC. 315. AMENDMENTS RELATING TO NONFEDERALLY INSURED CREDIT 
                   UNIONS.

       (a) In General.--Subsection (a) of section 43 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1831t(a)) is amended 
     by adding at the end the following new paragraph:
       ``(3) Enforcement by appropriate state supervisor.--Any 
     appropriate State supervisor of a private deposit insurer, 
     and any appropriate State supervisor of a depository 
     institution which receives deposits that are insured by a 
     private deposit insurer, may examine and enforce compliance 
     with this subsection under the applicable regulatory 
     authority of such supervisor.''.
       (b) Amendment Relating to Disclosures Required, Periodic 
     Statements and Account Records.--Section 43(b)(1) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1831t(b)(1)) is 
     amended by striking ``or similar instrument evidencing a 
     deposit'' and inserting ``or share certificate''.
       (c) Amendments Relating to Disclosures Required, 
     Advertising, Premises.-- Section 43(b)(2) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1831t(b)(2)) is amended to 
     read as follows:
       ``(2) Advertising; premises.--
       ``(A) In general.--Include clearly and conspicuously in all 
     advertising, except as provided in subparagraph (B); and at 
     each station or window where deposits are normally received, 
     its principal place of business and all its branches where it 
     accepts deposits or opens accounts (excluding automated 
     teller machines or point of sale terminals), and on its main 
     Internet page, a notice that the institution is not federally 
     insured.
       ``(B) Exceptions.--The following need not include a notice 
     that the institution is not federally insured:
       ``(i) Statements or reports of financial condition of the 
     depository institution that are required to be published or 
     posted by State or Federal law or regulation.
       ``(ii) Any sign, document, or other item that contains the 
     name of the depository institution, its logo, or its contact 
     information, but only if the sign, document, or item does not 
     include any information about the institution's products or 
     services or information otherwise promoting the institution.
       ``(iii) Small utilitarian items that do not mention deposit 
     products or insurance if inclusion of the notice would be 
     impractical.''.
       (d) Amendments Relating to Acknowledgment of Disclosure.--
     Section 43(b)(3) of the Federal Deposit Insurance Act (12 
     U.S.C. 1831t(b)(3)) is amended to read as follows:
       ``(3) Acknowledgment of disclosure.--
       ``(A) New depositors obtained other than through a 
     conversion or merger.--With respect to any depositor who was 
     not a depositor at the depository institution before the 
     effective date of the Financial Services Relief Act of 2005, 
     and who is not a depositor as described in subparagraph (B), 
     receive any deposit for the account of such depositor only if 
     the depositor has signed a written acknowledgement that--
       ``(i) the institution is not federally insured; and
       ``(ii) if the institution fails, the Federal Government 
     does not guarantee that the depositor will get back the 
     depositor's money.
       ``(B) New depositors obtained through a conversion or 
     merger.--With respect to a depositor at a federally insured 
     depository institution that converts to, or merges into, a 
     depository institution lacking federal insurance after the 
     effective date of the Financial Services Regulatory Relief 
     Act of 2005, receive any deposit for the account of such 
     depositor only if--
       ``(i) the depositor has signed a written acknowledgement 
     described in subparagraph (A); or
       ``(ii) the institution makes an attempt, as described in 
     subparagraph (D) and sent by mail no later than 45 days after 
     the effective date of the conversion or merger, to obtain the 
     acknowledgment.
       ``(C) Current depositors.--Receive any deposit after the 
     effective date of the Financial Services Regulatory Relief 
     Act of 2005 for the account of any depositor who was a 
     depositor on that date only if--
       ``(i) the depositor has signed a written acknowledgement 
     described in subparagraph (A); or
       ``(ii) the institution makes an attempt, as described in 
     subparagraph (D) and sent by mail no later than 45 days after 
     the effective date of the Financial Services Regulatory 
     Relief Act of 2005, to obtain the acknowledgment.
       ``(D) Alternative provision of notice to current depositors 
     and new depositors obtained through a conversion or merger.--
       ``(i) In general.--Transmit to each depositor who has not 
     signed a written acknowledgement described in subparagraph 
     (A)--

       ``(I) a conspicuous card containing the information 
     described in clauses (i) and (ii) of subparagraph (A), and a 
     line for the signature of the depositor; and
       ``(II) accompanying materials requesting the depositor to 
     sign the card, and return the signed card to the 
     institution.''.

       (e) Repeal of Provision Prohibiting Nondepository 
     Institutions From Accepting Deposits.--Section 43 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1831t) is amended--
       (1) by striking subsection (e); and
       (2) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.
       (f) Repeal of Provision Concerning Nondepository 
     Institutions Masquerading as Depository Institutions and 
     Clarification of Depository Institutions Covered by the 
     Statute.--Subsection (e)(2) (as so redesignated by subsection 
     (e) of this section) of section 43 of the Federal Deposit 
     Insurance Act (12 U.S.C. 1831t) is amended to read as 
     follows:
       ``(2) Depository institution.--The term `depository 
     institution'--
       ``(A) includes any entity described in section 
     19(b)(1)(A)(iv) of the Federal Reserve Act; and
       ``(B) does not include any national bank, State member 
     bank, or Federal branch.''.
       (g) Repeal of FTC Authority to Enforce Independent Audit 
     Requirement; Concurrent State Enforcement.--Subsection (f) 
     (as so redesignated by subsection (e) of this section) of 
     section 43 of the Federal Deposit Insurance Act (12 U.S.C. 
     1831t) is amended to read as follows:
       ``(f) Enforcement.--
       ``(1) Limited ftc enforcement authority.--Compliance with 
     the requirements of subsections (b) and (c), and any 
     regulation prescribed or order issued under any such 
     subsection, shall be enforced under the Federal Trade 
     Commission Act by the Federal Trade Commission.
       ``(2) Broad state enforcement authority.--
       ``(A) In general.--Subject to subparagraph (C), an 
     appropriate State supervisor of a depository institution 
     lacking Federal deposit insurance may examine and enforce 
     compliance with the requirements of this section, and any 
     regulation prescribed under this section.
       ``(B) State powers.--For purposes of bringing any action to 
     enforce compliance with this section, no provision of this 
     section shall be construed as preventing an appropriate State 
     supervisor of a depository institution lacking Federal 
     deposit insurance from exercising any powers conferred on 
     such official by the laws of such State.

[[Page 3009]]

       ``(C) Limitation on state action while federal action 
     pending.--If the Federal Trade Commission has instituted an 
     enforcement action for a violation of this section, no 
     appropriate State supervisor may, during the pendency of such 
     action, bring an action under this section against any 
     defendant named in the complaint of the Commission for any 
     violation of this section that is alleged in that 
     complaint.''.

              TITLE IV--DEPOSITORY INSTITUTION PROVISIONS

     SEC. 401. EASING RESTRICTIONS ON INTERSTATE BRANCHING AND 
                   MERGERS.

       (a) De Novo Interstate Branches of National Banks.--
       (1) In general.--Section 5155(g)(1) of the Revised Statutes 
     of the United States (12 U.S.C. 36(g)(1)) is amended by 
     striking ``maintain a branch if--'' and all that follows 
     through the end of subparagraph (B) and inserting ``maintain 
     a branch.''.
       (2) Clerical amendment.--The heading for subsection (g) of 
     section 5155 of the Revised Statutes of the United States is 
     amended by striking ``State `Opt-in' Election to Permit''.
       (b) De Novo Interstate Branches of State Nonmember Banks.--
       (1) In general.--Section 18(d)(4)(A) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(d)(4)(A)) is amended by 
     striking ``maintain a branch if--'' and all that follows 
     through the end of clause (ii) and inserting ``maintain a 
     branch.''.
       (2) Interstate branching by subsidiaries of commercial 
     firms prohibited.--Section 18(d)(3)) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(d)(3)) is amended by adding at 
     the end the following new subparagraph:
       ``(C) Interstate branching by subsidiaries of commercial 
     firms prohibited.--
       ``(i) In general.--If the appropriate State bank supervisor 
     of the home State of any industrial loan company, industrial 
     bank, or other institution described in section 2(c)(2)(H) of 
     the Bank Holding Company Act of 1956, or the appropriate 
     State bank supervisor of any host State with respect to such 
     company, bank, or institution, determines that such company, 
     bank, or institution is controlled, directly or indirectly, 
     by a commercial firm, such company, bank, or institution may 
     not acquire, establish, or operate a branch in such host 
     State.
       ``(ii) Commercial firm defined.--For purposes of this 
     subsection, the term `commercial firm' means any entity at 
     least 15 percent of the annual gross revenues of which on a 
     consolidated basis, including all affiliates of the entity, 
     were derived from engaging, on an on-going basis, in 
     activities that are not financial in nature or incidental to 
     a financial activity during at least 3 of the prior 4 
     calendar quarters.
       ``(iii) Grandfathered institutions.--Clause (i) shall not 
     apply with respect to any industrial loan company, industrial 
     bank, or other institution described in section 2(c)(2)(H) of 
     the Bank Holding Company Act of 1956--

       ``(I) which became an insured depository institution before 
     October 1, 2003 or pursuant to an application for deposit 
     insurance which was approved by the Corporation before such 
     date; and
       ``(II) with respect to which there is no change in control, 
     directly or indirectly, of the company, bank, or institution 
     after September 30, 2003, that requires an application under 
     subsection (c), section 7(j), section 3 of the Bank Holding 
     Company Act of 1956, or section 10 of the Home Owners' Loan 
     Act.

       ``(iv) Transition provision.--Any divestiture required 
     under this subparagraph of a branch in a host State shall be 
     completed as quickly as is reasonably possible.
       ``(v) Corporate reorganizations permitted.--The acquisition 
     of direct or indirect control of the company, bank, or 
     institution referred to in clause (iii)(II) shall not be 
     treated as a `change in control' for purposes of such clause 
     if the company acquiring control is itself directly or 
     indirectly controlled by a company that was an affiliate of 
     such company, bank, or institution on the date referred to in 
     clause (iii)(II), and remained an affiliate at all times 
     after such date.''.
       (3) Technical and conforming amendments.--Section 18(d)(4) 
     of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)(4)) 
     is amended--
       (A) in subparagraph (A) by striking ``Subject to 
     subparagraph (B)'' and inserting ``Subject to subparagraph 
     (B) and paragraph (3)(C)''; and
       (B) in subparagraphs (D) and (E), by striking ``The term'' 
     and inserting ``For purposes of this subsection, the term''.
       (4) Clerical amendment.--The heading for paragraph (4) of 
     section 18(d) of the Federal Deposit Insurance Act is amended 
     by striking ``State `opt-in' election to permit interstate'' 
     and inserting ``Interstate''.
       (c) De Novo Interstate Branches of State Member Banks.--The 
     3rd undesignated paragraph of section 9 of the Federal 
     Reserve Act (12 U.S.C. 321) is amended by adding at the end 
     the following new sentences: ``A State member bank may 
     establish and operate a de novo branch in a host State (as 
     such terms are defined in section 18(d) of the Federal 
     Deposit Insurance Act) on the same terms and conditions and 
     subject to the same limitations and restrictions as are 
     applicable to the establishment of a de novo branch of a 
     national bank in a host State under section 5155(g) of the 
     Revised Statutes of the United States or are applicable to an 
     insured State nonmember bank under section 18(d)(3) of the 
     Federal Deposit Insurance Act''. Such section 5155(g) shall 
     be applied for purposes of the preceding sentence by 
     substituting `Board of Governors of the Federal Reserve 
     System' for `Comptroller of the Currency' and `State member 
     bank' for `national bank'.''.
       (d) Interstate Merger of Banks.--
       (1) Merger of insured bank with another depository 
     institution or trust company.--Section 44(a)(1) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1831u(a)(1)) is 
     amended--
       (A) by striking ``Beginning on June 1, 1997, the'' and 
     inserting ``The''; and
       (B) by striking ``insured banks with different home 
     States'' and inserting ``an insured bank and another insured 
     depository institution or trust company with a different home 
     State than the resulting insured bank''.
       (2) National bank trust company merger with other trust 
     company.--Subsection (b) of section 4 of the National Bank 
     Consolidation and Merger Act (12 U.S.C. 215a-1(b)) is amended 
     to read as follows:
       ``(b) Merger of National Bank Trust Company With Another 
     Trust Company.--A national bank that is a trust company may 
     engage in a consolidation or merger under this Act with any 
     trust company with a different home State, under the same 
     terms and conditions that would apply if the trust companies 
     were located within the same State.''.
       (e) Interstate Fiduciary Activity.--Section 18(d) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended 
     by adding at the end the following new paragraph:
       ``(5) Interstate fiduciary activity.--
       ``(A) Authority of state bank supervisor.--The State bank 
     supervisor of a State bank may approve an application by the 
     State bank, when not in contravention of home State or host 
     State law, to act as trustee, executor, administrator, 
     registrar of stocks and bonds, guardian of estates, assignee, 
     receiver, committee of estates of lunatics, or in any other 
     fiduciary capacity in a host State in which State banks or 
     other corporations which come into competition with national 
     banks are permitted to act under the laws of such host State.
       ``(B) Noncontravention of host state law.--Whenever the 
     laws of a host State authorize or permit the exercise of any 
     or all of the foregoing powers by State banks or other 
     corporations which compete with national banks, the granting 
     to and the exercise of such powers by a State bank as 
     provided in this paragraph shall not be deemed to be in 
     contravention of host State law within the meaning of this 
     paragraph.
       ``(C) State bank includes trust companies.--For purposes of 
     this paragraph, the term `State bank' includes any State-
     chartered trust company (as defined in section 44(g)).
       ``(D) Other definitions.--For purposes of this paragraph, 
     the term `home State' and `host State' have the meanings 
     given such terms in section 44.''.
       (f) Technical and Conforming Amendments.--
       (1) Section 44 of the Federal Deposit Insurance Act (12 
     U.S.C. 1831u) is amended--
       (A) in subsection (a)--
       (i) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) Treatment of branches in connection with certain 
     interstate merger transactions.--In the case of an interstate 
     merger transaction which involves the acquisition of a branch 
     of an insured depository institution or trust company without 
     the acquisition of the insured depository institution or 
     trust company, the branch shall be treated, for purposes of 
     this section, as an insured depository institution or trust 
     company the home State of which is the State in which the 
     branch is located.''; and
       (ii) by striking paragraphs (5) and (6) and inserting the 
     following new paragraph:
       ``(5) Applicability to industrial loan companies.--No 
     provision of this section shall be construed as authorizing 
     the approval of any transaction involving a industrial loan 
     company, industrial bank, or other institution described in 
     section 2(c)(2)(H) of the Bank Holding Company Act of 1956, 
     or the acquisition, establishment, or operation of a branch 
     by any such company, bank, or institution, that is not 
     allowed under section 18(d)(3).''.
       (B) in subsection (b)--
       (i) by striking ``bank'' each place such term appears in 
     paragraph (2)(B)(i) and inserting ``insured depository 
     institution'';
       (ii) by striking ``banks'' where such term appears in 
     paragraph (2)(E) and inserting ``insured depository 
     institutions or trust companies'';
       (iii) by striking ``bank affiliate'' each place such term 
     appears in that portion of paragraph (3) that precedes 
     subparagraph (A) and inserting ``insured depository 
     institution affiliate'';
       (iv) by striking ``any bank'' where such term appears in 
     paragraph (3)(B) and inserting ``any insured depository 
     institution'';
       (v) by striking ``bank'' where such term appears in 
     paragraph (4)(A) and inserting ``insured depository 
     institution and trust company''; and
       (vi) by striking ``all banks'' where such term appears in 
     paragraph (5) and inserting ``all insured depository 
     institutions and trust companies'';
       (C) in subsection (d)(1), by striking ``any bank'' and 
     inserting ``any insured depository institution or trust 
     company'';
       (D) in subsection (e)--
       (i) by striking ``1 or more banks'' and inserting ``1 or 
     more insured depository institutions''; and
       (ii) by striking ``paragraph (2), (4), or (5)'' and 
     inserting ``paragraph (2)'';
       (E) by striking clauses (i) and (ii) of subsection 
     (g)(4)(A) and inserting the following new clauses:

[[Page 3010]]

       ``(i) with respect to a national bank or Federal savings 
     association, the State in which the main office of the bank 
     or savings association is located; and
       ``(ii) with respect to a State bank, State savings 
     association, or State-chartered trust company, the State by 
     which the bank, savings association, or trust company is 
     chartered; and'';
       (F) by striking paragraph (5) of subsection (g) and 
     inserting the following new paragraph:
       ``(5) Host state.--The term `host State' means--
       ``(A) with respect to a bank, a State, other than the home 
     State of the bank, in which the bank maintains, or seeks to 
     establish and maintain, a branch; and
       ``(B) with respect to a trust company and solely for 
     purposes of section 18(d)(5), a State, other than the home 
     State of the trust company, in which the trust company acts, 
     or seeks to act, in 1 or more fiduciary capacities.'';
       (G) in subsection (g)(10), by striking ``section 18(c)(2)'' 
     and inserting ``paragraph (1) or (2) of section 18(c), as 
     appropriate,''; and
       (H) in subsection (g), by adding at the end the following 
     new paragraph:
       ``(12) Trust company.--The term `trust company' means--
       ``(A) any national bank;
       ``(B) any savings association; and
       ``(C) any bank, banking association, trust company, savings 
     bank, or other banking institution which is incorporated 
     under the laws of any State,

     that is authorized to act in 1 or more fiduciary capacities 
     but is not engaged in the business of receiving deposits 
     other than trust funds (as defined in section 3(p)).''.
       (2) Section 3(d) of the Bank Holding Company Act of 1956 
     (12 U.S.C. 1842(d)) is amended--
       (A) in paragraph (1)--
       (i) by striking subparagraphs (B) and (C); and
       (ii) by redesignating subparagraph (D) as subparagraph (B); 
     and
       (B) in paragraph (5), by striking ``subparagraph (B) or 
     (D)'' and inserting ``subparagraph (B)''.
       (3) Subsection (c) of section 4 of the National Bank 
     Consolidation and Merger Act (12 U.S.C. 215a-1(c)) is amended 
     to read as follows:
       ``(c) Definitions.--For purposes of this section, the terms 
     `home State', `out-of-State bank', and `trust company' each 
     have the same meaning as in section 44(g) of the Federal 
     Deposit Insurance Act.''.
       (g) Clerical Amendments.--
       (1) The heading for section 44(b)(2)(E) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1831u(b)(2)(E)) is amended 
     by striking ``banks'' and inserting ``insured depository 
     institutions and trust companies''.
       (2) The heading for section 44(e) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1831u(e)) is amended by striking 
     ``Banks'' and inserting ``Insured Depository Institutions''.

     SEC. 402. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW OF 
                   APPOINTMENT OF A RECEIVER FOR DEPOSITORY 
                   INSTITUTIONS.

       (a) National Banks.--Section 2 of the National Bank 
     Receivership Act (12 U.S.C. 191) is amended--
       (1) by striking ``SECTION 2. The Comptroller of the 
     Currency'' and inserting the following:

     ``SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL BANK.

       ``(a) In General.--The Comptroller of the Currency''; and
       (2) by adding at the end the following new subsection:
       ``(b) Judicial Review.--If the Comptroller of the Currency 
     appoints a receiver under subsection (a), the national bank 
     may, within 30 days thereafter, bring an action in the United 
     States district court for the judicial district in which the 
     home office of such bank is located, or in the United States 
     District Court for the District of Columbia, for an order 
     requiring the Comptroller of the Currency to remove the 
     receiver, and the court shall, upon the merits, dismiss such 
     action or direct the Comptroller of the Currency to remove 
     the receiver.''.
       (b) Insured Depository Institutions.--Section 11(c)(7) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1821(c)(7)) is 
     amended to read as follows:
       ``(7) Judicial review.--If the Corporation is appointed 
     (including the appointment of the Corporation as receiver by 
     the Board of Directors) as conservator or receiver of a 
     depository institution under paragraph (4), (9), or (10), the 
     depository institution may, within 30 days thereafter, bring 
     an action in the United States district court for the 
     judicial district in which the home office of such depository 
     institution is located, or in the United States District 
     Court for the District of Columbia, for an order requiring 
     the Corporation to be removed as the conservator or receiver 
     (regardless of how such appointment was made), and the court 
     shall, upon the merits, dismiss such action or direct the 
     Corporation to be removed as the conservator or receiver.''.
       (c) Expansion of Period for Challenging the Appointment of 
     a Liquidating Agent.--Subparagraph (B) of section 207(a)(1) 
     of the Federal Credit Union Act (12 U.S.C. 1787(a)(1)) is 
     amended by striking ``10 days'' and inserting ``30 days''.
       (d) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply with respect to conservators, 
     receivers, or liquidating agents appointed on or after the 
     date of the enactment of this Act.

     SEC. 403. REPORTING REQUIREMENTS RELATING TO INSIDER LENDING.

       (a) Reporting Requirements Regarding Loans to Executive 
     Officers of Member Banks.--Section 22(g) of the Federal 
     Reserve Act (12 U.S.C. 375a) is amended--
       (1) by striking paragraphs (6) and (9); and
       (2) by redesignating paragraphs (7), (8), and (10) as 
     paragraphs (6), (7), and (8), respectively.
       (b) Reporting Requirements Regarding Loans From 
     Correspondent Banks to Executive Officers and Shareholders of 
     Insured Banks.--Section 106(b)(2) of the Bank Holding Company 
     Act Amendments of 1970 (12 U.S.C. 1972(2)) is amended--
       (1) by striking subparagraph (G); and
       (2) by redesignating subparagraphs (H) and (I) as 
     subparagraphs (G) and (H), respectively.

     SEC. 404. AMENDMENT TO PROVIDE AN INFLATION ADJUSTMENT FOR 
                   THE SMALL DEPOSITORY INSTITUTION EXCEPTION 
                   UNDER THE DEPOSITORY INSTITUTION MANAGEMENT 
                   INTERLOCKS ACT.

       Section 203(1) of the Depository Institution Management 
     Interlocks Act (12 U.S.C. 3202(1)) is amended by striking 
     ``$20,000,000'' and inserting ``$100,000,000''.

     SEC. 405. ENHANCING THE SAFETY AND SOUNDNESS OF INSURED 
                   DEPOSITORY INSTITUTIONS.

       (a) Clarification Relating to the Enforceability of 
     Agreements and Conditions.--The Federal Deposit Insurance Act 
     (12 U.S.C. 1811 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 49. ENFORCEMENT OF AGREEMENTS.

       ``(a) In General.--Notwithstanding clause (i) or (ii) of 
     section 8(b)(6)(A) or section 38(e)(2)(E)(i), an appropriate 
     Federal banking agency may enforce, under section 8, the 
     terms of--
       ``(1) any condition imposed in writing by the agency on a 
     depository institution or an institution-affiliated party 
     (including a bank holding company) in connection with any 
     action on any application, notice, or other request 
     concerning a depository institution; or
       ``(2) any written agreement entered into between the agency 
     and an institution-affiliated party (including a bank holding 
     company).
       ``(b) Receiverships and Conservatorships.--After the 
     appointment of the Corporation as the receiver or conservator 
     for any insured depository institution, the Corporation may 
     enforce any condition or agreement described in paragraph (1) 
     or (2) of subsection (a) involving such institution or any 
     institution-affiliated party (including a bank holding 
     company), through an action brought in an appropriate United 
     States district court.''.
       (b) Protection of Capital of Insured Depository 
     Institutions.--Paragraph (1) of section 18(u) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1828(u)) is amended by 
     striking subparagraph (B) and by redesignating subparagraph 
     (C) as subparagraph (B).

     SEC. 406. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK 
                   SERVICE COMPANIES AUTHORIZED.

       (a) In General.--Sections 2 and 3 of the Bank Service 
     Company Act (12 U.S.C. 1862, 1863) are each amended by 
     striking ``insured bank'' each place such term appears and 
     inserting ``insured depository institution''.
       (b) Technical and Conforming Amendments.--
       (1) Section 1(b)(4) of the Bank Service Company Act (12 
     U.S.C. 1861(b)(4)) is amended--
       (A) by inserting ``, except when such term appears in 
     connection with the term `insured depository institution','' 
     after ``means''; and
       (B) by striking ``Federal Home Loan Bank Board'' and 
     inserting ``Director of the Office of Thrift Supervision''.
       (2) Section 1(b) of the Bank Service Company Act (12 U.S.C. 
     1861(b)) is amended--
       (A) by striking paragraph (5) and inserting the following 
     new paragraph:
       ``(5) Insured depository institution.--The term `insured 
     depository institution' has the meaning given the term in 
     section 3(c) of the Federal Deposit Insurance Act;'';
       (B) by striking ``and'' at the end of paragraph (7);
       (C) by striking the period at the end of paragraph (8) and 
     inserting ``; and''; and
       (D) by adding at the end the following new paragraph:
       ``(9) the terms `State depository institution', `Federal 
     depository institution', `State savings association' and 
     `Federal savings association' have the meanings given the 
     terms in section 3 of the Federal Deposit Insurance Act.''.
       (3) The 1st sentence of section 5(c)(4)(B) of the Home 
     Owners' Loan Act (12 U.S.C. 1464(c)(4)(B)) is amended by 
     striking ``by savings associations of such State and by 
     Federal associations'' and inserting ``by State and Federal 
     depository institutions''.
       (4) Subparagraph (A)(ii) and subparagraph (B)(ii) of 
     section 1(b)(2) of the Bank Service Company Act (12 U.S.C. 
     1861(b)(2)) are each amended by striking ``insured banks'' 
     and inserting ``insured depository institutions''.
       (5) Section 1(b)(8) of the Bank Service Company Act (12 
     U.S.C. 1861(b)(8)) is further amended--
       (A) by striking ``insured bank'' and inserting ``insured 
     depository institution'';
       (B) by striking ``insured banks'' each place such term 
     appears and inserting ``insured depository institutions''; 
     and
       (C) by striking ``the bank's'' and inserting ``the 
     depository institution's''.
       (6) Section 2 of the Bank Service Company Act (12 U.S.C. 
     1862) is amended by inserting ``or savings associations, 
     other than the limitation on

[[Page 3011]]

     the amount of investment by a Federal savings association 
     contained in section 5(c)(4)(B) of the Home Owners' Loan 
     Act'' after ``relating to banks''.
       (7) Section 4(b) of the Bank Service Company Act (12 U.S.C. 
     1864(b)) is amended by inserting ``as permissible under 
     subsection (c), (d), or (e) or'' after ``Except''.
       (8) Section 4(c) of the Bank Service Company Act (12 U.S.C. 
     1864(c)) is amended by inserting ``or State savings 
     association'' after ``State bank'' each place such term 
     appears.
       (9) Section 4(d) of the Bank Service Company Act (12 U.S.C. 
     1864(d)) is amended by inserting ``or Federal savings 
     association'' after ``national bank'' each place such term 
     appears.
       (10) Section 4(e) of the Bank Service Company Act (12 
     U.S.C. 1864(e)) is amended to read as follows:
       ``(e) A bank service company may perform--
       ``(1) only those services that each depository institution 
     shareholder or member is otherwise authorized to perform 
     under any applicable Federal or State law; and
       ``(2) such services only at locations in a State in which 
     each such shareholder or member is authorized to perform such 
     services.''.
       (11) Section 4(f) of the Bank Service Company Act (12 
     U.S.C. 1864(f)) is amended by inserting ``or savings 
     associations'' after ``location of banks''.
       (12) Section 5 of the Bank Service Company Act (12 U.S.C. 
     1865) is amended--
       (A) in subsection (a)--
       (i) by striking ``insured bank'' and inserting ``insured 
     depository institution''; and
       (ii) by striking ``bank's'' and inserting 
     ``institution's'';
       (B) in subsection (b)--
       (i) by striking ``insured bank'' and inserting ``insured 
     depository institution'';
       (ii) by inserting ``authorized only'' after ``performs any 
     service''; and
       (iii) by inserting ``authorized only'' after ``perform any 
     activity''; and
       (C) in subsection (c)--
       (i) by striking ``the bank or banks'' and inserting ``any 
     depository institution''; and
       (ii) by striking ``capability of the bank'' and inserting 
     ``capability of the depository institution''.
       (13) Section 7 of the Bank Service Company Act (12 U.S.C. 
     1867) is amended--
       (A) in subsection (b), by striking ``insured bank'' and 
     inserting ``insured depository institution''; and
       (B) in subsection (c)--
       (i) by striking ``a bank'' each place such term appears and 
     inserting ``a depository institution''; and
       (ii) by striking ``the bank'' each place such term appears 
     and inserting ``the depository institution''.

     SEC. 407. CROSS GUARANTEE AUTHORITY.

       Subparagraph (A) of section 5(e)(9) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1815(e)(9)(A)) is amended to read as 
     follows:
       ``(A) such institutions are controlled by the same company; 
     or''.

     SEC. 408. GOLDEN PARACHUTE AUTHORITY AND NONBANK HOLDING 
                   COMPANIES.

       Subsection (k) of section 18 of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(k)) is amended--
       (1) in paragraph (2)(A), by striking ``or depository 
     institution holding company'' and inserting ``or covered 
     company'';
       (2) by striking subparagraph (B) of paragraph (2) and 
     inserting the following new subparagraph:
       ``(B) Whether there is a reasonable basis to believe that 
     the institution-affiliated party is substantially responsible 
     for--
       ``(i) the insolvency of the depository institution or 
     covered company;
       ``(ii) the appointment of a conservator or receiver for the 
     depository institution; or
       ``(iii) the depository institution's troubled condition (as 
     defined in the regulations prescribed pursuant to section 
     32(f)).'';
       (3) in paragraph (2)(F), by striking ``depository 
     institution holding company'' and inserting ``covered 
     company,'';
       (4) in paragraph (3) in the matter preceding subparagraph 
     (A), by striking ``depository institution holding company'' 
     and inserting ``covered company'';
       (5) in paragraph (3)(A), by striking ``holding company'' 
     and inserting ``covered company'';
       (6) in paragraph (4)(A)--
       (A) by striking ``depository institution holding company'' 
     each place such term appears and inserting ``covered 
     company''; and
       (B) by striking ``holding company'' each place such term 
     appears (other than in connection with the term referred to 
     in subparagraph (A)) and inserting ``covered company'';
       (7) in paragraph (5)(A), by striking ``depository 
     institution holding company'' and inserting ``covered 
     company'';
       (8) in paragraph (5), by adding at the end the following 
     new subparagraph:
       ``(D) Covered company.--The term `covered company' means 
     any depository institution holding company (including any 
     company required to file a report under section 4(f)(6) of 
     the Bank Holding Company Act of 1956), or any other company 
     that controls an insured depository institution.''; and
       (9) in paragraph (6)--
       (A) by striking ``depository institution holding company'' 
     and inserting ``covered company,''; and
       (B) by striking ``or holding company'' and inserting ``or 
     covered company''.

     SEC. 409. AMENDMENTS RELATING TO CHANGE IN BANK CONTROL.

       Section 7(j) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(j)) is amended--
       (1) in paragraph (1)(D)--
       (A) by striking ``is needed to investigate'' and inserting 
     ``is needed--
       ``(i) to investigate'';
       (B) by striking ``United States Code.'' and inserting 
     ``United States Code; or''; and
       (C) by adding at the end the following new clause:
       ``(ii) to analyze the safety and soundness of any plans or 
     proposals described in paragraph (6)(E) or the future 
     prospects of the institution.''; and
       (2) in paragraph (7)(C), by striking ``the financial 
     condition of any acquiring person'' and inserting ``either 
     the financial condition of any acquiring person or the future 
     prospects of the institution''.

     SEC. 410. COMMUNITY REINVESTMENT CREDIT FOR ESOPS AND EWOCS.

       Section 804 of the Community Reinvestment Act of 1977 (12 
     U.S.C. 2903) is amended by adding at the end the following 
     new subsection--
       ``(d) Establishment of Esops and Ewocs.--
       ``(1) In general.--In assessing and taking into account, 
     under subsection (a), the record of a financial institution, 
     the appropriate Federal financial supervisory agency shall 
     consider as a factor activities that support or enable the 
     establishment of employee stock ownership plans or eligible 
     worker-owned cooperatives, so long as the employer sponsoring 
     the plan or cooperative is at least 51 percent owned by 
     employees, including low to moderate income employees.
       ``(2) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Employee stock ownership plan.--The term `employee 
     stock ownership plan' has the same meaning as in section 
     4975(e)(7) of the Internal Revenue Code of 1986.
       ``(B) Eligible worker-owned cooperative.--The term 
     `eligible worker-owned cooperative' has the same meaning as 
     in section 1042(c)(2) of the Internal Revenue Code of 
     1986.''.

     SEC. 411. MINORITY FINANCIAL INSTITUTIONS.

       (a) In General.--The Federal Deposit Insurance Corporation 
     and the Office of Thrift Supervision shall provide such 
     technical assistance to minority financial institutions 
     affected by Hurricane Katrina, Hurricane Rita, and Hurricane 
     Wilma as may be appropriate to preserve the present number of 
     minority depository institutions and preserve the minority 
     character in cases involving mergers or acquisitions of a 
     minority depository institution consistent with section 
     308(a) of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989.
       (b) Minority Financial Institution Defined.--For purposes 
     of this subsection, the term ``minority financial 
     institution'' has the same meaning as in section 308(b) of 
     the Financial Institutions Reform, Recovery, and Enforcement 
     Act of 1989.

         TITLE V--DEPOSITORY INSTITUTION AFFILIATES PROVISIONS

     SEC. 501. CLARIFICATION OF CROSS MARKETING PROVISION.

       Section 4(n)(5) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1843(n)(5)) is amended--
       (1) in subparagraph (B), by striking ``subsection 
     (k)(4)(I)'' and inserting ``subparagraph (H) or (I) of 
     subsection (k)(4)''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) Threshold of control.--Subparagraph (A) shall not 
     apply with respect to a company described or referred to in 
     clause (i) or (ii) of such subparagraph if the financial 
     holding company does not own or control 25 percent or more of 
     the total equity or any class of voting securities of such 
     company.''.

     SEC. 502. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD WITH 
                   DISCRETION CONCERNING THE IMPUTATION OF CONTROL 
                   OF SHARES OF A COMPANY BY TRUSTEES.

       Section 2(g)(2) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841(g)(2)) is amended by inserting ``, unless the 
     Board determines that such treatment is not appropriate in 
     light of the facts and circumstances of the case and the 
     purposes of this Act'' before the period at the end.

     SEC. 503. ELIMINATING GEOGRAPHIC LIMITS ON THRIFT SERVICE 
                   COMPANIES.

       (a) In General.--The 1st sentence of section 5(c)(4)(B) of 
     the Home Owners' Loan Act (12 U.S.C. 1464(c)(4)(B)) (as 
     amended by section 406(b)(3) of this Act) is amended--
       (1) by striking ``corporation organized'' and all that 
     follows through ``is available for purchase'' and inserting 
     ``company, if the entire capital of the company is available 
     for purchase''; and
       (2) by striking ``having their home offices in such 
     State''.
       (b) Technical Corrections.--
       (1) The heading for subparagraph (B) of section 5(c)(4) of 
     the Home Owners' Loan Act (12 U.S.C. 1464(c)(4)(B)) is 
     amended by striking ``corporations'' and inserting 
     ``companies''.
       (2) The 2nd sentence of section 5(n)(1) of the Home Owners' 
     Loan Act (12 U.S.C. 1464(n)(1)) is amended by striking 
     ``service corporations'' and inserting ``service companies''.
       (3) Section 5(q)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(q)(1)) is amended by striking ``service corporation'' 
     each place such term appears in subparagraphs (A), (B), and 
     (C) and inserting ``service company''.
       (4) Section 10(m)(4)(C)(iii)(II) of the Home Owners' Loan 
     Act (12 U.S.C. 1467a(m)(4)(C)(iii)(II)) is amended by 
     striking ``service corporation'' each place such term appears 
     and inserting ``service company''.

[[Page 3012]]



     SEC. 504. CLARIFICATION OF SCOPE OF APPLICABLE RATE 
                   PROVISION.

       Section 44(f) of the Federal Deposit Insurance Act (12 
     U.S.C. 1831u(f)) is amended by adding at the end the 
     following new paragraphs:
       ``(3) Other lenders.--In the case of any other lender doing 
     business in the State described in paragraph (1), the maximum 
     interest rate or amount of interest, discount points, finance 
     charges, or other similar charges that may be charged, taken, 
     received, or reserved from time to time in any loan, 
     discount, or credit sale made, or upon any note, bill of 
     exchange, financing transaction, or other evidence of debt 
     issued to or acquired by any other lender shall be equal to 
     not more than the greater of the rates described in 
     subparagraph (A) or (B) of paragraph (1).
       ``(4) Other lender defined.--For purposes of paragraph (3), 
     the term `other lender' means any person engaged in the 
     business of selling or financing the sale of personal 
     property (and any services incidental to the sale of personal 
     property) in such State, except that, with regard to any 
     person or entity described in such paragraph, such term does 
     not include--
       ``(A) an insured depository institution; or
       ``(B) any person or entity engaged in the business of 
     providing a short-term cash advance to any consumer in 
     exchange for--
       ``(i) a consumer's personal check or share draft, in the 
     amount of the advance plus a fee, where presentment or 
     negotiation of such check or share draft is deferred by 
     agreement of the parties until a designated future date; or
       ``(ii) a consumer authorization to debit the consumer's 
     transaction account, in the amount of the advance plus a fee, 
     where such account will be debited on or after a designated 
     future date.''.

     SEC. 505. SAVINGS ASSOCIATIONS ACTING AS AGENTS FOR 
                   AFFILIATED DEPOSITORY INSTITUTIONS.

       (a) In General.--Section 18(r) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(r)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``bank subsidiary'' and inserting 
     ``depository institution subsidiary''; and
       (B) by striking ``bank holding company'' and inserting 
     ``depository institution holding company'';
       (2) in paragraph (2), by striking ``a bank acting'' and 
     inserting ``a depository institution acting'';
       (3) in paragraphs (3) and (5), by striking ``or (6)'' each 
     place such term appears in each such paragraph; and
       (4) by striking paragraph (6).
       (b) Clerical Amendment.--The heading for section 18(r)(2) 
     of the Federal Deposit Insurance Act (12 U.S.C. 1828(r)) is 
     amended by striking ``Bank'' and inserting ``Depository 
     institution''.

     SEC. 506. CREDIT CARD BANK INVESTMENTS FOR THE PUBLIC 
                   WELFARE.

       Section 2(c)(2)(F) of the Bank Holding Company Act of 1956 
     (12 U.S.C. 1841(c)(2)(F)) is amended--
       (1) in clause (i), by striking ``engages only in credit 
     card operations;'' and inserting ``engages only in--

       ``(I) credit card operations; and
       ``(II) making investments designed primarily to promote the 
     public welfare, including the welfare of low- and moderate-
     income communities or families (such as by providing housing, 
     services, or jobs), in the manner and to the extent permitted 
     for national banks under the paragraph designated the 
     `Eleventh' of section 5136 of the Revised Statutes of the 
     United States and regulations prescribed under such 
     paragraph, except that the last sentence of such paragraph 
     shall be applied for purposes of this subclause by 
     substituting `5 percent' for `15 percent' each place such 
     term appears; ''; and

       (2) in clause (v), by inserting ``, other than making or 
     purchasing loans for the purposes described in and to the 
     extent permitted in clause (i)(II))'' before the period at 
     the end.

                  TITLE VI--BANKING AGENCY PROVISIONS

     SEC. 601. WAIVER OF EXAMINATION SCHEDULE IN ORDER TO ALLOCATE 
                   EXAMINER RESOURCES.

       Section 10(d) of the Federal Deposit Insurance Act (12 
     U.S.C. 1820(d)) is amended--
       (1) by redesignating paragraphs (5), (6), (7), (8), (9), 
     and (10) as paragraphs (6), (7), (8), (9), (10), and (11), 
     respectively;
       (2) by inserting after paragraph (4), the following new 
     paragraph:
       ``(5) Waiver of schedule when necessary to achieve safe and 
     sound allocation of examiner resources.--Notwithstanding 
     paragraphs (1), (2), (3), and (4), an appropriate Federal 
     banking agency may make adjustments in the examination cycle 
     for an insured depository institution if necessary to 
     allocate available resources of examiners in a manner that 
     provides for the safety and soundness of, and the effective 
     examination and supervision of, insured depository 
     institutions.''; and
       (3) in paragraphs (8) and (9), as so redesignated, by 
     striking ``paragraph (6)'' and inserting ``paragraph (7)''.

     SEC. 602. INTERAGENCY DATA SHARING.

       (a) Federal Banking Agencies.--Section 7(a)(2) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1817(a)(2)) is 
     amended by adding at the end the following new subparagraph:
       ``(C) Data sharing with other agencies and persons.--In 
     addition to reports of examination, reports of condition, and 
     other reports required to be regularly provided to the 
     Corporation (with respect to all insured depository 
     institutions, including a depository institution for which 
     the Corporation has been appointed conservator or receiver) 
     or an appropriate State bank supervisor (with respect to a 
     State depository institution) under subparagraph (A) or (B), 
     a Federal banking agency may, in the agency's discretion, 
     furnish any report of examination or other confidential 
     supervisory information concerning any depository institution 
     or other entity examined by such agency under authority of 
     any Federal law, to--
       ``(i) any other Federal or State agency or authority with 
     supervisory or regulatory authority over the depository 
     institution or other entity;
       ``(ii) any officer, director, or receiver of such 
     depository institution or entity; and
       ``(iii) any other person the Federal banking agency 
     determines to be appropriate.''.
       (b) National Credit Union Administration.--Section 202(a) 
     of the Federal Credit Union Act (12 U.S.C. 1782(a)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Data sharing with other agencies and persons.--In 
     addition to reports of examination, reports of condition, and 
     other reports required to be regularly provided to the Board 
     (with respect to all insured credit unions, including a 
     credit union for which the Corporation has been appointed 
     conservator or liquidating agent) or an appropriate State 
     commission, board, or authority having supervision of a 
     State-chartered credit union, the Board may, in the Board's 
     discretion, furnish any report of examination or other 
     confidential supervisory information concerning any credit 
     union or other entity examined by the Board under authority 
     of any Federal law, to--
       ``(A) any other Federal or State agency or authority with 
     supervisory or regulatory authority over the credit union or 
     other entity;
       ``(B) any officer, director, or receiver of such credit 
     union or entity; and
       ``(C) any other institution-affiliated party of such credit 
     union or entity the Board determines to be appropriate.''.

     SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION BY CONVICTED 
                   INDIVIDUAL.

       Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 
     1829) is amended by adding at the end the following new 
     subsection:
       ``(c) Noninsured Banks.--Subsections (a) and (b) shall 
     apply to a noninsured national bank and a noninsured State 
     member bank, and any agency or noninsured branch (as such 
     terms are defined in section 1(b) of the International 
     Banking Act of 1978) of a foreign bank as if such bank, 
     branch, or agency were an insured depository institution, 
     except such subsections shall be applied for purposes of this 
     subsection by substituting the agency determined under the 
     following paragraphs for `Corporation' each place such term 
     appears in such subsections:
       ``(1) The Comptroller of the Currency, in the case of a 
     noninsured national bank or any Federal agency or noninsured 
     Federal branch of a foreign bank.
       ``(2) The Board of Governors of the Federal Reserve System, 
     in the case of a noninsured State member bank or any State 
     agency or noninsured State branch of a foreign bank.''.

     SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF OLD RECORDS 
                   OF A DEPOSITORY INSTITUTION BY THE FDIC AFTER 
                   THE APPOINTMENT OF THE FDIC AS RECEIVER.

       Section 11(d)(15)(D) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1821(d)(15)(D)) is amended--
       (1) by striking ``Recordkeeping requirement.--After the end 
     of the 6-year period'' and inserting ``Recordkeeping 
     requirement.--
       ``(i) In general.--Except as provided in clause (ii), after 
     the end of the 6-year period'';
       (2) by striking ``to be unnecessary'' and inserting ``are 
     unnecessary and not relevant to any pending or reasonably 
     probable future litigation''; and
       (3) by adding at the end the following new clause:
       ``(ii) Old records.--In the case of records of an insured 
     depository institution which--

       ``(I) are at least 10 years old, as of the date the 
     Corporation is appointed as the receiver of such depository 
     institution; and
       ``(II) are unnecessary and not relevant to any pending or 
     reasonably probable future litigation, as provided in clause 
     (i),

     the Corporation may destroy such records in accordance with 
     clause (i) any time after such appointment is final without 
     regard to the 6-year period of limitation contained in such 
     clause.''.

     SEC. 605. MODERNIZATION OF RECORDKEEPING REQUIREMENT.

       Subsection (f) of section 10 of the Federal Deposit 
     Insurance Act (12 U.S.C. 1820(f)) is amended to read as 
     follows:
       ``(f) Preservation of Agency Records.--
       ``(1) In general.--A Federal banking agency may cause any 
     and all records, papers, or documents kept by the agency or 
     in the possession or custody of the agency to be--
       ``(A) photographed or microphotographed or otherwise 
     reproduced upon film; or
       ``(B) preserved in any electronic medium or format which is 
     capable of--
       ``(i) being read or scanned by computer; and
       ``(ii) being reproduced from such electronic medium or 
     format by printing or any other form of reproduction of 
     electronically stored data.
       ``(2) Treatment as original records.--Any photographs, 
     microphotographs, or photographic film or copies thereof 
     described in paragraph (1)(A) or reproduction of 
     electronically stored data described in paragraph (1)(B) 
     shall be deemed to be an original record for all purposes, 
     including introduction in evidence in all State and Federal 
     courts or administrative agencies and shall be admissible to 
     prove any act, transaction, occurrence, or event therein 
     recorded.

[[Page 3013]]

       ``(3) Authority of the federal banking agencies.--Any 
     photographs, microphotographs, or photographic film or copies 
     thereof described in paragraph (1)(A) or reproduction of 
     electronically stored data described in paragraph (1)(B) 
     shall be preserved in such manner as the Federal banking 
     agency shall prescribe and the original records, papers, or 
     documents may be destroyed or otherwise disposed of as the 
     Federal banking agency may direct.''.

     SEC. 606. STREAMLINING REPORTS OF CONDITION.

       Section 7(a) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(a)) is amended by adding the following new 
     paragraph:
       ``(11) Streamlining reports of condition.--
       ``(A) Review of information and schedules.--Before the end 
     of the 1-year period beginning on the date of the enactment 
     of the Financial Services Regulatory Relief Act of 2005 and 
     before the end of each 5-year period thereafter, each Federal 
     banking agency shall, in consultation with the other relevant 
     Federal banking agencies, review the information and 
     schedules that are required to be filed by an insured 
     depository institution in a report of condition required 
     under paragraph (3).
       ``(B) Reduction or elimination of information found to be 
     unnecessary.--After completing the review required by 
     subparagraph (A), a Federal banking agency, in consultation 
     with the other relevant Federal banking agencies, shall 
     reduce or eliminate any requirement to file information or 
     schedules under paragraph (3) (other than information or 
     schedules that are otherwise required by law) if the agency 
     determines that the continued collection of such information 
     or schedules is no longer necessary or appropriate.''.

     SEC. 607. EXPANSION OF ELIGIBILITY FOR 18-MONTH EXAMINATION 
                   SCHEDULE FOR COMMUNITY BANKS.

       Paragraph (4)(A) of section 10(d) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1820(d)) is amended by striking 
     ``$250,000,000'' and inserting ``$1,000,000,000''.

     SEC. 608. SHORT FORM REPORTS OF CONDITION FOR CERTAIN 
                   COMMUNITY BANKS.

       (a) In General.--Section 7(a) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1817(a)) is amended by inserting 
     after paragraph (11) (as added by section 606 of this title) 
     the following new paragraph:
       ``(12) Short form reports of condition for community 
     banks.--
       ``(A) In general.--With respect to reports of condition 
     required under paragraph (3) for each calendar quarter, an 
     insured depository institution described in subparagraphs 
     (A), (B), (C), and (D) of section 10(d)(4) may submit a short 
     form of any such report of condition in 2 nonsequential 
     quarters of any calendar year.
       ``(B) Short form defined.--The term `short form', when used 
     in connection with any report of condition required under 
     paragraph (3), means a report of condition in a format 
     established by the appropriate Federal banking agency, after 
     notice and opportunity for comment, that--
       ``(i) is significantly and materially less burdensome for 
     the insured depository institution to prepare than the format 
     of the report of condition required under paragraph (3); and
       ``(ii) provides sufficient material information for the 
     appropriate Federal banking agency to assure the maintenance 
     of the safe and sound condition of the depository institution 
     and safe and sound practices.''.
       (b) Regulations.--Any regulation required to carry out the 
     amendment made by subsection (a) shall be published in final 
     form before the end of the 6-month period beginning on the 
     date of the enactment of this Act.

     SEC. 609. CLARIFICATION OF EXTENT OF SUSPENSION, REMOVAL, AND 
                   PROHIBITION AUTHORITY OF FEDERAL BANKING 
                   AGENCIES IN CASES OF CERTAIN CRIMES BY 
                   INSTITUTION-AFFILIATED PARTIES.

       (a) Insured Depository Institutions.--
       (1) In general.--Section 8(g)(1) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1818(g)(1)) is amended--
       (A) in subparagraph (A)--
       (i) by striking ``is charged in any information, 
     indictment, or complaint, with the commission of or 
     participation in'' and inserting ``is the subject of any 
     information, indictment, or complaint, involving the 
     commission of or participation in'';
       (ii) by striking ``may pose a threat to the interests of 
     the depository institution's depositors or may threaten to 
     impair public confidence in the depository institution,'' and 
     insert ``posed, poses, or may pose a threat to the interests 
     of the depositors of, or threatened, threatens, or may 
     threaten to impair public confidence in, any relevant 
     depository institution (as defined in subparagraph (E)),''; 
     and
       (iii) by striking ``affairs of the depository institution'' 
     and inserting ``affairs of any depository institution'';
       (B) in subparagraph (B)(i), by striking ``the depository 
     institution'' and inserting ``any depository institution that 
     the subject of the notice is affiliated with at the time the 
     notice is issued'';
       (C) in subparagraph (C)(i)--
       (i) by striking ``may pose a threat to the interests of the 
     depository institution's depositors or may threaten to impair 
     public confidence in the depository institution,'' and insert 
     ``posed, poses, or may pose a threat to the interests of the 
     depositors of, or threatened, threatens, or may threaten to 
     impair public confidence in, and relevant depository 
     institution (as defined in subparagraph (E)),''; and
       (ii) by striking ``affairs of the depository institution'' 
     and inserting ``affairs of any depository institution'';
       (D) in subparagraph (C)(ii), by striking ``affairs of the 
     depository institution'' and inserting ``affairs of any 
     depository institution'';
       (E) in subparagraph (D)(i), by striking ``the depository 
     institution'' and inserting ``any depository institution that 
     the subject of the order is affiliated with at the time the 
     order is issued''; and
       (F) by adding at the end the following new subparagraph:
       ``(E) Relevant depository institution.--For purposes of 
     this subsection, the term `relevant depository institution' 
     means any depository institution of which the party is or was 
     an institution-affiliated party at the time--
       ``(i) the information, indictment or complaint described in 
     subparagraph (A) was issued; or
       ``(ii) the notice is issued under subparagraph (A) or the 
     order is issued under subparagraph (C)(i).''.
       (2) Clerical amendment.--The heading for section 8(g) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1818(g)) is 
     amended to read as follows:
       ``(g) Suspension, Removal, and Prohibition From 
     Participation Orders in the Case of Certain Criminal 
     Offenses.--''.
       (b) Insured Credit Unions.--
       (1) In general.--Section 206(i)(1) of the Federal Credit 
     Union Act (12 U.S.C. 1786(i)(1)) is amended--
       (A) in subparagraph (A), by striking ``the credit union'' 
     each place such term appears and inserting ``any credit 
     union'';
       (B) in subparagraph (B)(i), by inserting ``of which the 
     subject of the order is, or most recently was, an 
     institution-affiliated party'' before the period at the end;
       (C) in subparagraph (C)--
       (i) by striking ``the credit union'' each place such term 
     appears and inserting ``any credit union''; and
       (ii) by striking ``the credit union's'' and inserting ``any 
     credit union's'';
       (D) in subparagraph (D)(i), by striking ``upon such credit 
     union'' and inserting ``upon the credit union of which the 
     subject of the order is, or most recently was, an 
     institution-affiliated party''; and
       (E) by adding at the end the following new subparagraph:
       ``(E) Continuation of authority.--The Board may issue an 
     order under this paragraph with respect to an individual who 
     is an institution-affiliated party at a credit union at the 
     time of an offense described in subparagraph (A) without 
     regard to--
       ``(i) whether such individual is an institution-affiliated 
     party at any credit union at the time the order is considered 
     or issued by the Board; or
       ``(ii) whether the credit union at which the individual was 
     an institution-affiliated party at the time of the offense 
     remains in existence at the time the order is considered or 
     issued by the Board.''.
       (2) Clerical amendment.--Section 206(i) of the Federal 
     Credit Union Act (12 U.S.C. 1786(i)) is amended by striking 
     ``(i)'' at the beginning and inserting the following new 
     subsection heading:
       ``(i) Suspension, Removal, and Prohibition From 
     Participation Orders in the Case of Certain Criminal 
     Offenses.--''.

     SEC. 610. STREAMLINING DEPOSITORY INSTITUTION MERGER 
                   APPLICATION REQUIREMENTS.

       (a) In General.--Paragraph (4) of section 18(c) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended 
     to read as follows:
       ``(4) Reports on competitive factors.--
       ``(A) Request for report.--In the interests of uniform 
     standards and subject to subparagraph (B), the responsible 
     agency shall, before acting on any application for approval 
     of a merger transaction--
       ``(i) request a report on the competitive factors involved 
     from the Attorney General; and
       ``(ii) provide a copy of the request to the Corporation 
     (when the Corporation is not the responsible agency).
       ``(B) Concurrent consideration.--The responsible agency 
     shall not be required to make a request under subparagraph 
     (A) before acting on an application for approval of a merger 
     transaction if--
       ``(i) the agency finds that it must act immediately in 
     order to prevent the probable failure of a depository 
     institution involved in the transaction; or
       ``(ii) the transaction consists of a merger between an 
     insured depository institution and 1 or more affiliates of 
     the depository institution.
       ``(C) Furnishing of report.--The report requested under 
     subparagraph (A) shall be furnished by the Attorney General 
     to the responsible agency--
       ``(i) not more than 30 calendar days after the date on 
     which the Attorney General received the request; or
       ``(ii) not more than 10 calendar days after such date, if 
     the requesting agency advises the Attorney General that an 
     emergency exists requiring expeditious action.''.
       (b) Technical and Conforming Amendment.--Section 18(c)(6) 
     of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) 
     is amended--
       (1) in the second sentence by striking ``banks or savings 
     associations involved'' and inserting the following: 
     ``insured depository institutions involved, or if the 
     proposed merger transaction

[[Page 3014]]

     is solely between an insured depository institution and 1 or 
     more of affiliates of the depository institution,'' and
       (2) by striking the penultimate sentence and inserting the 
     following: ``If the agency has advised the Attorney General 
     under paragraph (4)(C)(ii) of the existence of an emergency 
     requiring expeditious action and has requested a report on 
     the competitive factors within 10 days, the transaction may 
     not be consummated before the fifth calendar day after the 
     date of approval by the agency.''.

     SEC. 611. INCLUSION OF DIRECTOR OF THE OFFICE OF THRIFT 
                   SUPERVISION IN LIST OF BANKING AGENCIES 
                   REGARDING INSURANCE CUSTOMER PROTECTION 
                   REGULATIONS.

       Section 47(g)(2)(B)(i) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1831x(g)(2)(B)(i)) is amended by inserting ``the 
     Director of the Office of Thrift Supervision,'' after 
     ``Comptroller of the Currency,''.

     SEC. 612. PROTECTION OF CONFIDENTIAL INFORMATION RECEIVED BY 
                   FEDERAL BANKING REGULATORS FROM FOREIGN BANKING 
                   SUPERVISORS.

       Section 15 of the International Banking Act of 1978 (12 
     U.S.C. 3109) is amended by adding at the end the following 
     new subsection:
       ``(c) Confidential Information Received From Foreign 
     Supervisors.--
       ``(1) In general.--Except as provided in paragraph (3), a 
     Federal banking agency shall not be compelled to disclose 
     information received from a foreign regulatory or supervisory 
     authority if--
       ``(A) the Federal banking agency determines that the 
     foreign regulatory or supervisory authority has, in good 
     faith, determined and represented to such Federal banking 
     agency that public disclosure of the information would 
     violate the laws applicable to that foreign regulatory or 
     supervisory authority; and
       ``(B) the relevant Federal banking agency obtained such 
     information pursuant to--
       ``(i) such procedures as the Federal banking agency may 
     establish for use in connection with the administration and 
     enforcement of Federal banking laws; or
       ``(ii) a memorandum of understanding or other similar 
     arrangement between the Federal banking agency and the 
     foreign regulatory or supervisory authority.
       ``(2) Treatment under title 5, united states code.--For 
     purposes of section 552 of title 5, United States Code, this 
     subsection shall be treated as a statute described in 
     subsection (b)(3)(B) of such section.
       ``(3) Savings provision.--No provision of this section 
     shall be construed as--
       ``(A) authorizing any Federal banking agency to withhold 
     any information from any duly authorized committee of the 
     House of Representatives or the Senate; or
       ``(B) preventing any Federal banking agency from complying 
     with an order of a court of the United States in an action 
     commenced by the United States or such agency.
       ``(4) Federal banking agency defined.--For purposes of this 
     subsection, the term `Federal banking agency' means the 
     Board, the Comptroller, the Federal Deposit Insurance 
     Corporation, and the Director of the Office of Thrift 
     Supervision.''.

     SEC. 613. PROHIBITION ON PARTICIPATION BY CONVICTED 
                   INDIVIDUAL.

       (a) Extension of Automatic Prohibition.--Section 19 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1829) is amended by 
     inserting after subsection (c) (as added by section 603 of 
     this title) the following new subsections:
       ``(d) Bank Holding Companies.--Subsections (a) and (b) 
     shall apply to any company (other than a foreign bank) that 
     is a bank holding company and any organization organized and 
     operated under section 25A of the Federal Reserve Act or 
     operating under section 25 of the Federal Reserve Act as if 
     such bank holding company or organization were an insured 
     depository institution, except such subsections shall be 
     applied for purposes of this subsection by substituting 
     `Board of Governors of the Federal Reserve System' for 
     `Corporation' each place such term appears in such 
     subsections.
       ``(e) Savings and Loan Holding Companies.--Subsections (a) 
     and (b) shall apply to any savings and loan holding company 
     and any subsidiary (other than a savings association) of a 
     savings and loan holding company as if such savings and loan 
     holding company or subsidiary were an insured depository 
     institution, except such subsections shall be applied for 
     purposes of this subsection by substituting `Director of the 
     Office of Thrift Supervision' for `Corporation' each place 
     such term appears in such subsections.''.
       (b) Enhanced Discretion to Remove Convicted Individuals.--
     Section 8(e)(2)(A) of the Federal Deposit Insurance Act (12 
     U.S.C. 1818(e)(2)(A)) is amended--
       (1) by striking ``or'' at the end of clause (ii);
       (2) by striking the comma at the end of clause (iii) and 
     inserting ``; or''; and
       (3) by adding at the end the following new clause:
       ``(iv) an institution-affiliated party of a subsidiary 
     (other than a bank) of a bank holding company has been 
     convicted of any criminal offense involving dishonesty or a 
     breach of trust, or has agreed to enter into a pretrial 
     diversion or similar program in connection with a prosecution 
     for such an offense,''.

     SEC. 614. CLARIFICATION THAT NOTICE AFTER SEPARATION FROM 
                   SERVICE MAY BE MADE BY AN ORDER.

       (a) In General.--Section 8(i)(3) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1818(i)(3)) is amended by inserting 
     ``or order'' after ``notice'' each place such term appears.
       (b) Technical and Conforming Amendment.--The heading for 
     section 8(i)(3) of the Federal Deposit Insurance Act (12 
     U.S.C. 1818(i)(3)) is amended by inserting ``or Order'' after 
     ``Notice''.

     SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS REGARDING 
                   FDIC DEPOSIT INSURANCE COVERAGE.

       (a) In General.--Section 18(a) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(a)) is amended by adding at the 
     end the following new paragraph:
       ``(4) False advertising, misuse of fdic names, and 
     misrepresentation to indicate insured status.--
       ``(A) Prohibition on false advertising and misuse of fdic 
     names.--No person may--
       ``(i) use the terms `Federal Deposit', `Federal Deposit 
     Insurance', `Federal Deposit Insurance Corporation', any 
     combination of such terms, or the abbreviation `FDIC' as part 
     of the business name or firm name of any person, including 
     any corporation, partnership, business trust, association, or 
     other business entity; or
       ``(ii) use such terms or any other sign or symbol as part 
     of an advertisement, solicitation, or other document,

     to represent, suggest or imply that any deposit liability, 
     obligation, certificate or share is insured or guaranteed by 
     the Federal Deposit Insurance Corporation, if such deposit 
     liability, obligation, certificate, or share is not insured 
     or guaranteed by the Corporation.
       ``(B) Prohibition on misrepresentations of insured 
     status.--No person may knowingly misrepresent--
       ``(i) that any deposit liability, obligation, certificate, 
     or share is federally insured, if such deposit liability, 
     obligation, certificate, or share is not insured by the 
     Corporation; or
       ``(ii) the extent to which or the manner in which any 
     deposit liability, obligation, certificate, or share is 
     insured by the Federal Deposit Insurance Corporation, if such 
     deposit liability, obligation, certificate, or share is not 
     insured by the Corporation to the extent or in the manner 
     represented.
       ``(C) Authority of fdic.--The Corporation shall have--
       ``(i) jurisdiction over any person that violates this 
     paragraph, or aids or abets the violation of this paragraph; 
     and
       ``(ii) for purposes of enforcing the requirements of this 
     paragraph with regard to any person--

       ``(I) the authority of the Corporation under section 10(c) 
     to conduct investigations; and
       ``(II) the enforcement authority of the Corporation under 
     subsections (b), (c), (d) and (i) of section 8,

     as if such person were a state nonmember insured bank.
       ``(D) Other actions preserved.--No provision of this 
     paragraph shall be construed as barring any action otherwise 
     available, under the laws of the United States or any State, 
     to any Federal or State law enforcement agency or 
     individual.''.
       (b) Enforcement Orders.--Section 8(c) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1818(c)) is amended by 
     adding at the end the following new paragraph:
       ``(4) False advertising or misuse of names to indicate 
     insured status.--
       ``(A) Temporary order.--
       ``(i) In general.--If a notice of charges served under 
     subsection (b)(1) of this section specifies on the basis of 
     particular facts that any person is engaged in conduct 
     described in section 18(a)(4), the Corporation may issue a 
     temporary order requiring--

       ``(I) the immediate cessation of any activity or practice 
     described, which gave rise to the notice of charges; and
       ``(II) affirmative action to prevent any further, or to 
     remedy any existing, violation.

       ``(ii) Effect of order.--Any temporary order issued under 
     this subparagraph shall take effect upon service.
       ``(B) Effective period of temporary order.--A temporary 
     order issued under subparagraph (A) shall remain effective 
     and enforceable, pending the completion of an administrative 
     proceeding pursuant to subsection (b)(1) in connection with 
     the notice of charges--
       ``(i) until such time as the Corporation shall dismiss the 
     charges specified in such notice; or
       ``(ii) if a cease-and-desist order is issued against such 
     person, until the effective date of such order.
       ``(C) Civil money penalties.--Violations of section 
     18(a)(4) shall be subject to civil money penalties as set 
     forth in subsection (i) in an amount not to exceed $1,000,000 
     for each day during which the violation occurs or 
     continues.''.
       (c) Technical and Conforming Amendments.--
       (1) Section 18(a)(3) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1828(a)) is amended--
       (A) in the 1st sentence by striking ``of this subsection'' 
     and inserting ``of paragraphs (1) and (2)'';
       (B) by striking the 2nd sentence; and
       (C) in the 3rd sentence, by striking ``of this subsection'' 
     and inserting ``of paragraphs (1) and (2)''.
       (2) The heading for subsection (a) of section 18 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828(a)) is amended 
     by striking ``Insurance Logo.--'' and inserting 
     ``Representations of Deposit Insurance.--''.

[[Page 3015]]



     SEC. 616. CHANGES REQUIRED TO SMALL BANK HOLDING COMPANY 
                   POLICY STATEMENT ON ASSESSMENT OF FINANCIAL AND 
                   MANAGERIAL FACTORS.

       (a) Small Bank Holding Company Policy Statement on 
     Assessment of Financial and Managerial Factors.--
       (1) In general.--Before the end of the 6-month period 
     beginning on the date of the enactment of this Act, the Board 
     of Governors of the Federal Reserve System shall publish in 
     the Federal Register proposed revisions to the Small Bank 
     Holding Company Policy Statement on Assessment of Financial 
     and Managerial Factors (12 C.F.R. part 225--appendix C) that 
     provide that the policy shall apply to a bank holding company 
     which has pro forma consolidated assets of less than 
     $1,000,000,000 and that--
       (A) is not engaged in any nonbanking activities involving 
     significant leverage; and
       (B) does not have a significant amount of outstanding debt 
     that is held by the general public.
       (2) Adjustment of amount.--The Board of Governors of the 
     Federal Reserve System shall annually adjust the dollar 
     amount referred to in paragraph (1) in the Small Bank Holding 
     Company Policy Statement on Assessment of Financial and 
     Managerial Factors by an amount equal to the percentage 
     increase, for the most recent year, in total assets held by 
     all insured depository institutions, as determined by the 
     Board.
       (b) Increase in Debt-to-equity Ratio of Small Bank Holding 
     Company.--Before the end of the 6-month period beginning on 
     the date of the enactment of this Act, the Board of Governors 
     of the Federal Reserve System shall publish in the Federal 
     Register proposed revisions to the Small Bank Holding Company 
     Policy Statement on Assessment of Financial and Managerial 
     Factors (12 C.F.R. part 225--appendix C) such that the debt-
     to-equity ratio allowable for a small bank holding company in 
     order to remain eligible to pay a corporate dividend and to 
     remain eligible for expedited processing procedures under 
     Regulation Y of the Board of Governors of the Federal Reserve 
     System would increase from 1:1 to 3:1.

     SEC. 617. EXCEPTION TO ANNUAL PRIVACY NOTICE REQUIREMENT 
                   UNDER THE GRAMM-LEACH-BLILEY ACT.

       Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803) 
     is amended by adding the following new subsections:
       ``(c) Exception to Annual Notice Requirement.--A financial 
     institution that--
       ``(1) provides nonpublic personal information only in 
     accordance with the provisions of subsection (b)(2) or (e) of 
     section 502 or regulations prescribed under section 504(b);
       ``(2) does not share information with affiliates under 
     section 603(d)(2)(A) of the Fair Credit Reporting Act; and
       ``(3) has not changed its policies and practices with 
     regard to disclosing nonpublic personal information from the 
     policies and practices that were disclosed in the most recent 
     disclosure sent to consumers in accordance with this 
     subsection,

     shall not be required to provide an annual disclosure under 
     this subsection until such time as the financial institution 
     fails to comply with any criteria described in paragraph (1), 
     (2), or (3).
       ``(d) Exception to Notice Requirement.--A financial 
     institution shall not be required to provide any disclosure 
     under this section if--
       ``(1) the financial institution is licensed by a State and 
     is subject to existing regulation of consumer confidentiality 
     that prohibits disclosure of nonpublic personal information 
     without knowing and expressed consent of the consumer in the 
     form of laws, rules, or regulation of professional conduct or 
     ethics promulgated either by the court of highest appellate 
     authority or by the principal legislative body or regulatory 
     agency or body of any State of the United States, the 
     District of Columbia, any territory of the United States, 
     Puerto Rico, Guam, American Samoa, the Trust Territory of the 
     Pacific Islands, the Virgin Islands, or the Northern Mariana 
     Islands; or
       ``(2) the financial institution is licensed by a State and 
     becomes subject to future regulation of consumer 
     confidentiality that prohibits disclosure of nonpublic 
     personal information without knowing and expressed consent of 
     the consumer in the form of laws, rules, or regulation of 
     professional conduct or ethics promulgated either by the 
     court of highest appellate authority or by the principal 
     legislative body or regulatory agency or body of any State of 
     the United States, the District of Columbia, any territory of 
     the United States, Puerto Rico, Guam, American Samoa, the 
     Trust Territory of the Pacific Islands, the Virgin Islands, 
     or the Northern Mariana Islands.''.

     SEC. 618. BIENNIAL REPORTS ON THE STATUS OF AGENCY EMPLOYMENT 
                   OF MINORITIES AND WOMEN.

       (a) In General.--Before December 31, 2005, and the end of 
     each 2-year period beginning after such date, each Federal 
     banking agency shall submit a report to the Congress on the 
     status of the employment by the agency of minority 
     individuals and women.
       (b) Factors to Be Included.--The report shall include a 
     detailed assessment of each of the following:
       (1) The extent of hiring of minority individuals and women 
     by the agency as of the time the report is prepared.
       (2) The successes achieved and challenges faced by the 
     agency in operating minority and women outreach programs.
       (3) Challenges the agency may face in finding qualified 
     minority individual and women applicants.
       (4) Such other information, findings, and conclusions, and 
     recommendations for legislative or agency action, as the 
     agency may determine to be appropriate to include in the 
     report.
       (c) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Federal banking agency.--The term ``Federal banking 
     agency''--
       (A) has the same meaning as in section 3(z) of the Federal 
     Deposit Insurance Act; and
       (B) includes the National Credit Union Administration.
       (2) Minority.--The term ``minority'' has the same meaning 
     as in section 1204(c)(3) of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989.

     SEC. 619. COORDINATION OF STATE EXAMINATION AUTHORITY.

       Section 10(h) of the Federal Deposit Insurance Act (12 
     U.S.C. 1820(h)) is amended to read as follows:
       ``(h) Coordination of Examination Authority.--
       ``(1) State bank supervisors of home and host states.--
       ``(A) Home state of bank.--The appropriate State bank 
     supervisor of the home State of an insured State bank has 
     authority to examine and supervise the bank.
       ``(B) Host state branches.--The State bank supervisor of 
     the home State of an insured State bank and any State bank 
     supervisor of an appropriate host State shall exercise their 
     respective authority to supervise and examine the branches of 
     the bank in a host State in accordance with the terms of any 
     applicable cooperative agreement between the home State bank 
     supervisor and the State bank supervisor of the relevant host 
     State.
       ``(C) Supervisory fees.--Except as expressly provided in a 
     cooperative agreement between the State bank supervisors of 
     the home State and any host State of an insured State bank, 
     only the State bank supervisor of the home State of an 
     insured State bank may levy or charge State supervisory fees 
     on the bank.
       ``(2) Host state examination.--
       ``(A) In general.--With respect to a branch operated in a 
     host State by an out-of-State insured State bank that 
     resulted from an interstate merger transaction approved under 
     section 44 or that was established in such State pursuant to 
     section 5155(g) of the Revised Statutes, the third 
     undesignated paragraph of section 9 of the Federal Reserve 
     Act or section 18(d)(4) of this Act, the appropriate State 
     bank supervisor of such host State may--
       ``(i) with written notice to the State bank supervisor of 
     the bank's home State and subject to the terms of any 
     applicable cooperative agreement with the State bank 
     supervisor of such home State, examine such branch for the 
     purpose of determining compliance with host State laws that 
     are applicable pursuant to section 24(j) of this Act, 
     including those that govern community reinvestment, fair 
     lending, and consumer protection; and
       ``(ii) if expressly permitted under and subject to the 
     terms of a cooperative agreement with the State bank 
     supervisor of the bank's home State or if such out-of-State 
     insured State bank has been determined to be in a troubled 
     condition by either the State bank supervisor of the bank's 
     home State or the bank's appropriate Federal banking agency, 
     participate in the examination of the bank by the State bank 
     supervisor of the bank's home State to ascertain that the 
     activities of the branch in such host State are not conducted 
     in an unsafe or unsound manner.
       ``(B) Notice of determination.--
       ``(i) In general.--The State bank supervisor of the home 
     State of an insured State bank should notify the State bank 
     supervisor of each host State of the bank if there has been a 
     final determination that the bank is in a troubled condition.
       ``(ii) Timing of notice.--The State bank supervisor of the 
     home State of an insured State bank should provide notice 
     under clause (i) as soon as reasonably possible but in all 
     cases within 15 business days after the State bank supervisor 
     has made such final determination or has received written 
     notification of such final determination.
       ``(3) Host state enforcement.--If the State bank supervisor 
     of a host State determines that a branch of an out-of-State 
     State insured State bank is violating any law of the host 
     State that is applicable to such branch pursuant to section 
     24(j) of this Act, including a law that governs community 
     reinvestment, fair lending, or consumer protection, the State 
     bank supervisor of the host State or, to the extent 
     authorized by the law of the host State, a host State law 
     enforcement officer may, with written notice to the State 
     bank supervisor of the bank's home State and subject to the 
     terms of any applicable cooperative agreement with the State 
     bank supervisor of the bank's home State, undertake such 
     enforcement actions and proceedings as would be permitted 
     under the law of the host State as if the branch were a bank 
     chartered by that host State.
       ``(4) Cooperative agreement.--
       ``(A) In general.--The State bank supervisors from 2 or 
     more States may enter into cooperative agreements to 
     facilitate State regulatory supervision of State banks, 
     including cooperative agreements relating to the coordination 
     of examinations and joint participation in examinations. For 
     purposes of this subsection (h), the term `cooperative 
     agreement' means a written agreement that is signed by the 
     home State bank supervisor and host State bank supervisor to 
     facilitate State regulatory supervision of State

[[Page 3016]]

     banks and includes nationwide or multi-state cooperative 
     agreements and cooperative agreements solely between the home 
     State and host State.
       ``(B) Rule of construction.--Except for State bank 
     supervisors, no provision of this subsection relating to such 
     cooperative agreements shall be construed as limiting in any 
     way the authority of home and host State law enforcement 
     officers, regulatory supervisors, or other officials that 
     have not signed such cooperative agreements to enforce host 
     State laws that are applicable to a branch of an out-of-State 
     insured State bank located in the host State pursuant to 
     section 24(j) of this Act.
       ``(5) Federal regulatory authority.--No provision of this 
     subsection shall be construed as limiting in any way the 
     authority of any Federal banking agency.
       ``(6) State taxation authority not affected.--No provision 
     of this subsection (h) shall be construed as affecting the 
     authority of any State or political subdivision of any State 
     to adopt, apply, or administer any tax or method of taxation 
     to any bank, bank holding company, or foreign bank, or any 
     affiliate of any bank, bank holding company, or foreign bank, 
     to the extent such tax or tax method is otherwise permissible 
     by or under the Constitution of the United States or other 
     Federal law.
       ``(7) Definitions.--For purpose of this section, the 
     following definition shall apply:
       ``(A) Host state, home state, out-of-state bank.--The terms 
     `host State', `home State', and `out-of-State bank' have the 
     same meanings as in section 44(g).
       ``(B) State supervisory fees.--The term `State supervisory 
     fees' means assessments, examination fees, branch fees, 
     license fees, and all other fees that are levied or charged 
     by a State bank supervisor directly upon an insured State 
     bank or upon branches of an insured State bank.
       ``(C) Troubled condition.--Solely for purposes of 
     subparagraph (2)(B) of this subsection (h), an insured State 
     bank has been determined to be in `troubled condition' if the 
     bank--
       ``(i) has a composite rating, as determined in its most 
     recent report of examination, of 4 or 5 under the Uniform 
     Financial Institutions Ratings System (UFIRS); or
       ``(ii) is subject to a proceeding initiated by the 
     Corporation for termination or suspension of deposit 
     insurance; or
       ``(iii) is subject to a proceeding initiated by the State 
     bank supervisor of the bank's home State to vacate, revoke, 
     or terminate the charter of the bank, or to liquidate the 
     bank, or to appoint a receiver for the bank.
       ``(D) Final determination.--For the purposes of paragraph 
     (2)(B), the term `final determination' means the transmittal 
     of a report of examination to the bank or transmittal of 
     official notice of proceedings to the bank.''.

     SEC. 620. NONWAIVER OF PRIVILEGES.

       (a) Insured Depository Institutions.--Section 18 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by 
     adding at the end the following new subsection:
       ``(x) Privileges not Affected by Disclosure to Banking 
     Agency or Supervisor.--
       ``(1) In general.--The submission by any person of any 
     information to any Federal banking agency, State bank 
     supervisor, or foreign banking authority for any purpose in 
     the course of any supervisory or regulatory process of such 
     agency, supervisor, or authority shall not be construed as 
     waiving, destroying, or otherwise affecting any privilege 
     such person may claim with respect to such information under 
     Federal or State law as to any person or entity other than 
     such agency, supervisor, or authority.
       ``(2) Rule of construction.--No provision of paragraph (1) 
     may be construed as implying or establishing that--
       ``(A) any person waives any privilege applicable to 
     information that is submitted or transferred under any 
     circumstance to which paragraph (1) does not apply; or
       ``(B) any person would waive any privilege applicable to 
     any information by submitting the information to any Federal 
     banking agency, State bank supervisor, or foreign banking 
     authority, but for this subsection.''.
       (b) Insured Credit Unions.--Section 205 of the Federal 
     Credit Union Act (12 U.S.C. 1785) is amended by adding at the 
     end the following new subsection:
       ``(j) Privileges not Affected by Disclosure to Banking 
     Agency or Supervisor.--
       ``(1) In general.--The submission by any person of any 
     information to the Administration, any State credit union 
     supervisor, or foreign banking authority for any purpose in 
     the course of any supervisory or regulatory process of such 
     Board, supervisor, or authority shall not be construed as 
     waiving, destroying, or otherwise affecting any privilege 
     such person may claim with respect to such information under 
     Federal or State law as to any person or entity other than 
     such Board, supervisor, or authority.
       ``(2) Rule of construction.--No provision of paragraph (1) 
     may be construed as implying or establishing that--
       ``(A) any person waives any privilege applicable to 
     information that is submitted or transferred under any 
     circumstance to which paragraph (1) does not apply; or
       ``(B) any person would waive any privilege applicable to 
     any information by submitting the information to the 
     Administration, any State credit union supervisor, or foreign 
     banking authority, but for this subsection.''.

     SEC. 621. RIGHT TO FINANCIAL PRIVACY ACT OF 1978 AMENDMENT.

       Paragraph (1) of section 1101 of the Right to Financial 
     Privacy Act of 1978 (12 U.S.C. 3401) is amended by inserting 
     ``(including any lender who advances funds on pledges of 
     personal property)'' after ``consumer finance institution''.

     SEC. 622. DEPUTY DIRECTOR; SUCCESSION AUTHORITY FOR DIRECTOR 
                   OF THE OFFICE OF THRIFT SUPERVISION.

       (a) Establishment of Position of Deputy Director.--Section 
     3(c)(5) of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(5)) 
     is amended to read as follows:
       ``(5) Deputy director.--
       ``(A) In general.--The Secretary of the Treasury shall 
     appoint a Deputy Director and may appoint up to 3 additional 
     Deputy Directors.
       ``(B) First deputy director.--If the Secretary of the 
     Treasury appoints more than 1 Deputy Director of the Office, 
     the Secretary shall designate one such appointee as the First 
     Deputy Director.
       ``(C) Duties.--Each Deputy Director appointed under this 
     paragraph shall take an oath of office and perform such 
     duties as the Director shall direct.
       ``(D) Compensation and benefits.--The Director shall fix 
     the compensation and benefits for each Deputy Director in 
     accordance with this Act.''.
       (b) Service of Deputy Director as Acting Director.--Section 
     3(c)(3) of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(3)) 
     is amended--
       (1) by striking ``Vacancy.--A vacancy in the position of 
     Director'' and inserting ``Vacancy.--
       ``(A) In general.--A vacancy in the position of Director''; 
     and
       (2) by adding at the end the following new subparagraphs:
       ``(B) Acting director.--
       ``(i) In general.--In the event of a vacancy in the 
     position of Director or during the absence or disability of 
     the Director, the Deputy Director shall serve as Acting 
     Director.
       ``(ii) Succession in case of 2 or more deputy directors.--
     If there are 2 or more Deputy Directors serving at the time a 
     vacancy in the position of Director occurs or the absence or 
     disability of the Director commences, the First Deputy 
     Director shall serve as Acting Director under clause (i) 
     followed by such other Deputy Directors under any order of 
     succession the Director may establish.
       ``(iii) Authority of acting director.--Any Deputy Director, 
     while serving as Acting Director under this subparagraph, 
     shall be vested with all authority, duties, and privileges of 
     the Director under this Act and any other provision of 
     Federal law.''.

     SEC. 623. LIMITATION ON SCOPE OF NEW AGENCY GUIDELINES.

       (a) In General.--The provisions of the multi-agency 
     guidance Numbered 2003-1 issued by the Comptroller of the 
     Currency, the Board of Governors of the Federal Reserve 
     System, the Federal Deposit Insurance Corporation, and the 
     Director of the Office of Thrift Supervision that relate to 
     minimum credit card payments and negative amortization--
       (1) shall only apply to new credit card accounts 
     established by a creditor for a consumer after the date of 
     the enactment of this Act under an open end consumer credit 
     plan; and
       (2) shall not apply to any outstanding balance on any 
     credit card account under an open end consumer credit plan as 
     of such date of enactment.
       (b) Definitions.--For purposes of this section, the terms 
     ``credit'', ``credit card'', ``creditor'', ``consumer'' and 
     ``open end credit plan'' have the same meanings as in section 
     103 of the Truth in Lending Act.
       (c) Sunset Provision.--This section shall not apply after 
     the end of the 3-year period beginning on the date of the 
     enactment of this Act .

             TITLE VII--``BSA'' COMPLIANCE BURDEN REDUCTION

     SEC. 701. EXCEPTION FROM CURRENCY TRANSACTION REPORTS FOR 
                   SEASONED CUSTOMERS.

       (a) Findings.--The Congress finds as follows:
       (1) The completion of and filing of currency transaction 
     reports under section 5313 of title 31, United States Code, 
     poses a compliance burden on the financial industry.
       (2) Due to the nature of the transactions or the persons 
     and entities conducting such transactions, certain such 
     reports as currently filed do not appear to be relevant to 
     the detection, deterrence, or investigation of financial 
     crimes, including money laundering and the financing of 
     terrorism.
       (3) However, the data contained in such reports can provide 
     valuable context for the analysis of other data derived 
     pursuant to subchapter II of chapter 53 of title 31, United 
     States Code, as well as investigative data, which provides 
     invaluable and indispensable information supporting efforts 
     to combat money laundering and other financial crimes.
       (4) An exemption from the reporting requirements for 
     certain currency transactions that are of little or no value 
     to ongoing efforts of law enforcement agencies, financial 
     regulatory agencies, and the financial services industry to 
     investigate, detect, or deter financial crimes would serve to 
     balance the burden placed on members of the financial 
     services industry with the compelling need to produce and 
     provide meaningful information to policy-makers, financial 
     regulators, law enforcement, and intelligence agencies.
       (5) The Secretary of the Treasury has by regulation, and in 
     accordance with section 5313 of title 31, United States Code, 
     implemented a process by which institutions may seek 
     exemptions from filing certain currency transaction reports 
     based on appropriate circumstances; however,

[[Page 3017]]

     the existing exemption process has not adequately balanced 
     the burden on the financial industry with the Government's 
     need for data to support its efforts in combating financial 
     crime.
       (6) The act of providing notice to the Secretary of the 
     Treasury of designations of exemption provides meaningful 
     information to law enforcement officials on exempt customers 
     and enables law enforcement to obtain account information 
     through appropriate legal process; the act of providing 
     notice of designations of exemption complements other 
     sections of title 31, United States Code, whereby law 
     enforcement can locate financial institutions with relevant 
     records relating to a person of investigative interest, such 
     as information requests made pursuant to regulations 
     implementing section 314(a) of the USA PATRIOT Act of 2001.
       (7) A designation of exemption has no effect on 
     requirements for depository institutions to apply the full 
     range of anti-money laundering controls as set forth in 
     subchapter II of chapter 53 of title 31, United States Code, 
     including the requirement to apply the customer 
     identification program pursuant to Section 5326 of subchapter 
     II of chapter 53 of title 31, United States Code, and the 
     requirement to identify, monitor, and, if appropriate, report 
     suspicious activity in accordance with section 5318(g) of 
     title 31, United States Code.
       (8) The Federal banking agencies and the Financial Crimes 
     Enforcement Network have recently provided guidance through 
     the Federal Financial Institutions Examination Council Bank 
     Secrecy Act/Anti-Money Laundering Examination Manual on 
     applying appropriate levels of due diligence and identifying 
     suspicious activity by the types of cash-intensive businesses 
     that generally will be subject to exemption.
       (b) Seasoned Customer Exemption.--
       (1) In general.--Section 5313(e) of title 31, United States 
     Code, is amended to read as follows:
       ``(e) Qualified Customer Exemption.--
       ``(1) In general.--The Secretary of the Treasury shall 
     prescribe regulations within 270 days of the enactment of the 
     Financial Services Regulatory Relief Act of 2005 that exempt 
     any depository institution from filing a report pursuant to 
     this section in a transaction for the payment, receipt, or 
     transfer of United States coins or currency (or other 
     monetary instruments the Secretary of the Treasury 
     prescribes) with a qualified customer of the depository 
     institution.
       ``(2) Qualified customer defined.--For purposes of this 
     section, the term `qualified customer', with respect to a 
     depository institution, has such meaning as the Secretary of 
     the Treasury shall prescribe, which shall include any person 
     that--
       ``(A) is incorporated or organized under the laws of the 
     United States or any State, including a sole proprietorship, 
     or is registered as and eligible to do business within the 
     United States or a State;
       ``(B) has maintained a deposit account with the depository 
     institution for at least 12 months; and
       ``(C) has engaged, using such account, in multiple currency 
     transactions that are subject to the reporting requirements 
     of subsection (a).
       ``(3) Regulations.--
       ``(A) In general.--The Secretary of the Treasury shall 
     prescribe regulations requiring a depository institution to 
     file a 1-time notice of designation of exemption for each 
     qualified customer of the depository institution.
       ``(B) Form and content of exemption notice.--The Secretary 
     shall by regulation prescribe the form, manner, content, and 
     timing of the qualified customer exemption notice; such 
     notice shall include information sufficient to identify the 
     qualified customer and its accounts.
       ``(C) Authority of secretary.--
       ``(i) In general.--The Secretary may suspend, reject or 
     revoke any qualified customer exemption notice, in accordance 
     with criteria prescribed by the Secretary by regulation.
       ``(ii) Conditions.--The Secretary may establish conditions, 
     in accordance with criteria prescribed by regulation, under 
     which exempt qualified customers of an insured depository 
     institution that is merged with or acquired by another 
     insured depository institution will continue to be treated as 
     designated exempt qualified customers of the surviving or 
     acquiring institution.''.
       (c) 3-Year Review and Report.--Before the end of the 3-year 
     period beginning on the date of the enactment of this Act, 
     the Secretary of the Treasury, in consultation with the 
     Attorney General, the Secretary of the Department of Homeland 
     Security, the Federal banking agencies, the banking industry, 
     and such other persons as the Secretary deems appropriate, 
     shall evaluate the operations and effect of this provision 
     and make recommendations to Congress as to any legislative 
     action with respect to this provision as the Secretary may 
     determine to be appropriate.

     SEC. 702. REDUCTION IN INCONSISTENCIES IN MONETARY 
                   TRANSACTION RECORDKEEPING AND REPORTING 
                   ENFORCEMENT AND EXAMINATION REQUIREMENTS.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that inconsistencies and redundancies among regulations 
     implementing monetary transaction recordkeeping and reporting 
     enforcement programs under section 8 of the Federal Deposit 
     Insurance Act, section 206(q) of the Federal Credit Union 
     Act, and chapter II of chapter 53 of title 31, United States 
     Code by the Secretary of the Treasury and the Federal banking 
     agencies--
       (1) increase the difficulty depository institutions have in 
     complying with congressional intent in creating such 
     enforcement programs,
       (2) reduce the transparency and clarity of the regulatory 
     regime;
       (3) increase the potential for conflict among the various 
     regulations in the future; and
       (4) contribute to the perception that various agencies 
     involved in the enforcement of the monetary transaction 
     recordkeeping and reporting requirements apply such 
     requirements inconsistently.
       (b) Agency Coordination of Monetary Transaction 
     Recordkeeping and Reporting Requirements.--
       (1) Enforcement programs.--
       (A) Federal deposit insurance act.--Section 8(s) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1818(s)) is amended 
     by adding at the end the following new paragraph:
       ``(4) Coordination on uniform requirements.--In prescribing 
     regulations under paragraph (1), the Federal banking 
     agencies, acting through the Financial Institutions 
     Examination Council, shall--
       ``(A) consult with each other, the National Credit Union 
     Administration Board, and the Secretary of the Treasury; and
       ``(B) take such action as may be necessary to ensure that 
     the requirements for procedures established pursuant to such 
     regulations, and the examination standards for reviewing such 
     procedures, are congruent and reasonably uniform (taking into 
     account differences in the form and function of the 
     institutions subject to such requirements).''.
       (B) Federal credit union act.--Section 206(q) of the 
     Federal Credit Union Act (12 U.S.C. 1786(q)) is amended by 
     adding at the end the following new paragraph:
       ``(4) Coordination on uniform requirements.--In prescribing 
     regulations under paragraph (1), the Board, acting through 
     the Financial Institutions Examination Council, shall--
       ``(A) consult with the Federal banking agencies and the 
     Secretary of the Treasury; and
       ``(B) take such action as may be necessary to ensure that 
     the requirements for procedures established pursuant to such 
     regulations, and the examination standards for reviewing such 
     procedures, are congruent and reasonably uniform (taking into 
     account differences in the form and function of the 
     institutions subject to such requirements).''.
       (2) Examination standards and disputes.--Section 1006 of 
     the Federal Financial Institutions Examination Council Act of 
     1978 (12 U.S.C. 3305) is amended by adding at the end the 
     following new subsection:
       ``(h) Monetary Transaction Recordkeeping and Reporting 
     Requirements.--The Council and the Secretary of the Treasury 
     shall jointly establish--
       ``(1) uniform standards and principles applicable to the 
     examination of financial institutions to ensure compliance 
     with the requirements of subchapter II of chapter 53, United 
     States Code, sections 8(s) and 21 of the Federal Deposit 
     Insurance Act, and section 206(q) of the Federal Credit Union 
     Act; and
       ``(2) a clear policy statement on appropriate processes for 
     resolving examiner-institution disagreements concerning the 
     application of subchapter II of chapter 53, United States 
     Code, sections 8(s) and 21 of the Federal Deposit Insurance 
     Act, and section 206(q) of the Federal Credit Union Act to 
     financial institutions.''.
       (3) Effective date.--The Federal banking agencies, the 
     National Credit Union Administration Board, the Financial 
     Institutions Examination Council, and the Secretary of the 
     Treasury shall commence the discussions and consultations 
     required under the amendments made by this subsection as soon 
     as practicable after the date of the enactment of this Act.
       (c) Review of and Report on Additional Regulatory or 
     Legislative Changes.--
       (1) Review required.--Before the end of the 6-month period 
     beginning on the date of the enactment of this Act, the 
     Secretary of the Treasury shall conduct a review of the 
     potential inconsistencies in, or redundancies among, the 
     regulations pertaining to the application of the requirements 
     of subchapter II of chapter 53, United States Code, sections 
     8(s) and 21 of the Federal Deposit Insurance Act, and section 
     206(q) of the Federal Credit Union Act to financial 
     institutions.
       (2) Report to congress and the financial institutions 
     examination council.--Upon completion of the review under 
     paragraph (1), the Secretary of the Treasury shall promptly 
     submit a report on the findings and conclusions of the 
     Secretary with respect to the review to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate, together with such recommendations for legislative 
     and administrative actions as the Secretary may determine to 
     be appropriate, and shall transmit a copy of such report to 
     the members of the Financial Institutions Examination 
     Council.
       (d) Reform of Application of Monetary Transaction 
     Recordkeeping and Reporting Requirements to Financial 
     Institutions.--Before the end of the 9-month period beginning 
     on the date of the submission of the report to Congress under 
     subsection (c)(2), the Secretary of the Treasury shall 
     prescribe regulations implementing appropriate changes to 
     regulations within the jurisdiction of the Secretary to 
     remedy redundancies or inconsistencies identified in the 
     review by, and included in the recommendations of, the 
     Secretary under subsection (c).

[[Page 3018]]



     SEC. 703. ADDITIONAL REFORMS RELATING TO MONETARY TRANSACTION 
                   AND RECORDKEEPING REQUIREMENTS APPLICABLE TO 
                   FINANCIAL INSTITUTIONS.

       (a) Notification of Officers and Directors of Financial 
     Institutions.--Before the end of the 6-month period beginning 
     on the date of the enactment of this Act, the Secretary of 
     the Treasury shall--
       (1) review any regulation, guideline, or guidance of the 
     Secretary, any Federal banking agency, or the National Credit 
     Union Administration Board that serves as the basis for any 
     requirement to provide notice to any officer or director of a 
     depository institution of any suspicious activity report 
     submitted by the depository institution to the Secretary and 
     any such agency or Board;
       (2) modify or eliminate any such requirement of the 
     Secretary that the Secretary determines is not necessary to 
     achieve the purposes of section 5318(g) of title 31, United 
     States Code; and
       (3) make a recommendation to any Federal banking agency or 
     the National Credit Union Administration Board to modify or 
     eliminate any such requirement of such agency or Board that 
     the Secretary determines is not necessary to achieve the 
     purposes of section 5318(g) of title 31, United States Code.
       (b) Elimination of Unnecessary Verifi-
     cation Requirements Applicable to the Purchase of Financial 
     Instruments.--Before the end of the 9-month period beginning 
     on the date of the enactment of this Act, the Secretary of 
     the Treasury shall--
       (1) review all verification of customer identity 
     requirements as they relate to the purchases of monetary 
     instruments by customers of depository institutions, 
     including the regulations codified in section 103.29(a)(ii) 
     of title 31, Code of Federal Regulations; and
       (2) modify or eliminate any customer identity requirement 
     related to the purchases of monetary instruments by customers 
     of depository institutions codified in section 103.29(a)(ii) 
     of title 31, Code of Federal Regulations, that the Secretary 
     determines is unnecessary.
       (c) Elimination of Recurring Filings of Suspicious Activity 
     Reports on a Single Transaction.--Before the end of the 9-
     month period beginning on the date of the enactment of this 
     Act, the Secretary of the Treasury, as appropriate, shall 
     prescribe regulations, or issue other forms of guidance, that 
     eliminate the need for depository institutions to file 
     recurring suspicious activity reports on the same transaction 
     unless there has been a subsequent change in any pattern of 
     activity involving any person who was connected with the 
     transaction.
       (d) Electronic Acknowledgement of Certain Electronic 
     Filings.--Before the end of the 1-year period beginning on 
     the date of the enactment of this Act, the Director of the 
     Financial Crimes Enforcement Network shall put into effect a 
     system for promptly furnishing an electronic acknowledgement 
     of receipt to any institution that files a form with FinCEN 
     under subchapter II of chapter 53 of title 31, United States 
     Code, through the Network's electronic filing system.

     SEC. 704. STUDY BY COMPTROLLER GENERAL.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study on methods and practices which 
     would--
       (1) reduce the overall number of currency transaction 
     reports filed with the Secretary of the Treasury under 
     section 5313(a) of title 31, United States Code, while 
     ensuring that the needs of the Secretary, the Financial 
     Crimes Enforcement Network, law enforcement agencies, and 
     financial institution regulatory agencies continue to be met;
       (2) improve financial institution utilization of the 
     current exemption provisions; and
       (3) mitigate the difficulties in the current implementation 
     of such exemption provisions that limit the utility of the 
     exemption process for financial institutions.
       (b) Report.--Before the end of the 6-month period beginning 
     on the date of the enactment of this Act, the Comptroller 
     General shall submit a report to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate on the 
     findings and conclusions of the Comptroller General with 
     respect to the study conducted under subsection (a) and such 
     recommendations for legislative and administrative action as 
     the Comptroller General may determine to be appropriate.

     SEC. 705. FEASIBILITY STUDY REQUIRED.

       (a) In General.--For the purpose of simplifying, and 
     increasing compliance with, the various recordkeeping and 
     reporting requirements under subchapter II of chapter 53 of 
     title 31, United States Code, chapter 2 of title I of Public 
     Law 91-508, and section 21 of the Federal Deposit Insurance 
     Act, and regulations prescribed under such provisions of law, 
     the Secretary of the Treasury (hereafter in this section 
     referred to as the ``Secretary'') shall conduct a study on 
     the feasibility of developing and implementing interfaces and 
     templates for use in electronic communications between 
     financial institutions (as defined in section 5312 of title 
     31, United States Code) and the Secretary, the Financial 
     Crimes Enforcement Network, and other Federal financial 
     institution regulatory agencies.
       (b) Factors to Be Considered.--In conducting the study 
     required under subsection (a), the Secretary shall take into 
     account--
       (1) any procedures required to be maintained by financial 
     institutions under regulations prescribed pursuant to section 
     5318(a)(2) of title 31 of the United States Code and the 
     manner in which the use of interfaces and templates which 
     might be developed could lessen the burden of complying with 
     such procedures; and
       (2) any exemptions prescribed by the Secretary under 
     paragraph (5) or (6) of such section 5318(a) and the manner 
     in which interfaces and templates which might be developed 
     could be programmed to reflect any such exemption for a 
     financial institution, transaction, or class of transactions.
       (c) Prototype and Report Required.--
       (1) In general.--Before the end of the 1-year period 
     beginning on the date of the enactment of this Act, the 
     Secretary shall submit a report to the Congress containing a 
     detailed description of the findings and conclusions of the 
     Secretary in connection with the study required under 
     subsection (a), together with such recommendations for 
     legislative or administrative action as the Secretary may 
     determine to be appropriate.
       (2) Prototype.--Any recommendation on the feasibility of 
     developing and implementing interfaces and templates for use 
     in electronic communications shall be accompanied by 
     prototypes of such interfaces and templates that demonstrate 
     such feasibility.
       (d) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Interface.--The term ``interface'' means the point and 
     method of interaction between any 2 or more electronic data 
     storage and communication systems that permits and 
     facilitates active electronic communication between or among 
     the systems, including any procedures, codes, and protocols 
     that enable the systems to interact.
       (2) Template.--The term ``template'' means a preestablished 
     layout model using word processing or other authoring 
     software that ensures that data entered into it will adhere 
     to a consistent format and content scheme when used by all 
     parties engaged in electronic communications among each 
     other.

     SEC. 706. ANNUAL REPORT BY SECRETARY OF THE TREASURY.

       (a) Findings.--The Congress finds as follows:
       (1) Financial institutions have too little information 
     about money laundering and terrorist financing compliance in 
     other markets.
       (2) The current Financial Action Task Force designation 
     system does not adequately represent the progress countries 
     are making in combatting money laundering.
       (3) Lack of information about the compliance of countries 
     with anti-money laundering standards exposes United States 
     financial markets to excessive risk.
       (4) Failure to designate countries that fail to make 
     progress in combatting terrorist financing and money 
     laundering eliminates incentives for internal reform.
       (5) The Secretary of the Treasury has an affirmative duty 
     to provide to financial institutions and examiners the best 
     possible information on compliance with anti-money laundering 
     and terrorist financing initiatives in other markets.
       (b) Report.--Not later than March 1 of each year, the 
     Secretary of the Treasury shall submit to the Congress a 
     report that identifies the applicable standards of each 
     country against money laundering and states whether that 
     country is a country of primary money laundering concern 
     under section 5318A of title 31, United States Code. The 
     report shall include--
       (1) information on the effectiveness of each country in 
     meeting its standards against money laundering;
       (2) a determination of whether that the efforts of that 
     country to combat money laundering and terrorist financing 
     are adequate, improving, or inadequate; and
       (3) the efforts made by the Secretary to provide to the 
     government of each such country of concern technical 
     assistance to cease the activities that were the basis for 
     the determination that the country was of primary money 
     laundering concern.
       (c) Dissemination of Information in Report.--The Secretary 
     of the Treasury shall make available to the Federal Financial 
     Institutions Examination Council for incorporation into the 
     examination process, in consultation with Federal banking 
     agencies, and to financial institutions the information 
     contained in the report submitted under subsection (a). Such 
     information shall be made available to financial institutions 
     without cost.
       (d) Definition.--For purposes of this section, the term 
     ``financial institution'' has the meaning given that term in 
     section 5312(a)(2) of title 31, United States Code.

     SEC. 707. PRESERVATION OF MONEY SERVICES BUSINESSES.

       (a) Findings.--The Congress finds as follows:
       (1) Title III of the USA PATRIOT ACT provided United States 
     law enforcement agencies with new tools to combat terrorist 
     financing and money laundering.
       (2) The Financial Crimes Enforcement Network in the 
     Department of the Treasury (hereafter in this section 
     referred to as ``FinCEN'' ) has defined money services 
     businesses to include the following 5 distinct types of 
     financial services providers as well as the United States 
     Postal Service:
       (A) Currency dealers or exchanges.
       (B) Check cashing services.
       (C) Issuers of travelers' checks, money orders, or stored 
     value cards.
       (D) Sellers or redeemers of travelers' checks, money 
     orders, or stored value cards.
       (E) Money transmitters.
       (3) Money services businesses have had more difficulty in 
     obtaining and maintaining banking services since the passage 
     of the USA PATRIOT ACT.

[[Page 3019]]

       (4) On March 30, 2005, FinCEN and the Federal banking 
     agencies (as defined in section 3 of the Federal Deposit 
     Insurance Act) issued a joint statement recognizing the 
     importance of ensuring that money services businesses that 
     comply with the law have reasonable access to banking 
     services.
       (5) On April 26, 2005, FinCEN offered guidance to money 
     service businesses on obtaining and maintaining banking 
     services by identifying and explaining to money services 
     businesses the types of information and documentation they 
     are expected to have, and to provide to, depository 
     institutions when conducting banking business.
       (6) At the same time, FinCEN and the Federal banking 
     agencies have issued joint guidance to depository 
     institutions to--
       (A) clarify the requirements of subchapter II of chapter 53 
     of title 31, United States Code, and related provisions of 
     law; and
       (B) set forth the minimum steps that depository 
     institutions should take when providing banking services to 
     money services businesses.
       (7) It is in the interest of the United States and its 
     allies in the wars against terrorism and drugs to make 
     certain that the international transfer of funds is done in a 
     rules-based, formal, and transparent manner and that 
     individuals are not forced into utilizing informal 
     underground methods due to a lack of services.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that depository institutions and money services businesses 
     should follow the guidance offered by FinCEN for the purpose 
     of giving money services businesses full access to banking 
     services and ensuring that money services businesses remain 
     in the mainstream financial system and can be full players in 
     providing important financial services to their customers and 
     be fully cooperative in the fight against terrorist financing 
     and money laundering.

             TITLE VIII--CLERICAL AND TECHNICAL AMENDMENTS

     SEC. 801. CLERICAL AMENDMENTS TO THE HOME OWNERS' LOAN ACT.

       (a) Amendment to Table of Contents.--The table of contents 
     in section 1 of the Home Owners' Loan Act (12 U.S.C. 1461) is 
     amended by striking the items relating to sections 5 and 6 
     and inserting the following new items:

``Sec. 5. Savings associations.
``Sec. 6. [Repealed.].''.

       (b) Clerical Amendments to Headings.--
       (1) The heading for section 4(a) of the Home Owners' Loan 
     Act (12 U.S.C. 1463(a)) is amended by striking ``(a) Federal 
     Savings Associations.--'' and inserting ``(a) General 
     Responsibilities of the Director.--''.
       (2) The section heading for section 5 of the Home Owners' 
     Loan Act (12 U.S.C. 1464) is amended to read as follows:

     ``SEC. 5. SAVINGS ASSOCIATIONS.''.

     SEC. 802. TECHNICAL CORRECTIONS TO THE FEDERAL CREDIT UNION 
                   ACT.

       The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is 
     amended as follows:
       (1) In section 101(3), strike ``and'' after the semicolon.
       (2) In section 101(5), strike the terms ``account account'' 
     and ``account accounts'' each place any such term appears and 
     insert ``account''.
       (3) In section 107(a)(5)(E) (as so designated by section 
     303 of this Act), strike the period at the end and insert a 
     semicolon.
       (4) In paragraphs (6) and (7) of section 107(a) (as so 
     designated by section 303 of this Act), strike the period at 
     the end and insert a semicolon.
       (5) In section 107(a)(7)(D) (as so designated by section 
     303 of this Act), strike ``the Federal Savings and Loan 
     Insurance Corporation or''.
       (6) In section 107(a)(7)(E) (as so designated by section 
     303 of this Act), strike ``the Federal Home Loan Bank 
     Board,'' and insert ``the Federal Housing Finance Board,''.
       (7) In section 107(a)(9) (as so designated by section 303 
     of this Act), strike ``subchapter III'' and insert ``title 
     III''.
       (8) In section 107(a)(13) (as so designated by section 303 
     of this Act), strike the ``and'' after the semicolon at the 
     end.
       (9) In section 109(c)(2)(A)(i), strike ``(12 U.S.C. 
     4703(16))''.
       (10) In section 120(h), strike ``the Act approved July 30, 
     1947 (6 U.S.C., secs. 6-13),'' and insert ``chapter 93 of 
     title 31, United States Code,''.
       (11) In section 201(b)(5), strike ``section 116 of''.
       (12) In section 202(h)(3), strike ``section 207(c)(1)'' and 
     insert ``section 207(k)(1)''.
       (13) In section 204(b), strike ``such others powers'' and 
     insert ``such other powers''.
       (14) In section 206(e)(3)(D), strike ``and'' after the 
     semicolon at the end.
       (15) In section 206(f)(1), strike ``subsection (e)(3)(B)'' 
     and insert ``subsection (e)(3)''.
       (16) In section 206(g)(7)(D), strike ``and subsection 
     (1)''.
       (17) In section 206(t)(2)(B), insert ``regulations'' after 
     ``as defined in''.
       (18) In section 206(t)(2)(C), strike ``material affect'' 
     and insert ``material effect''.
       (19) In section 206(t)(4)(A)(ii)(II), strike ``or'' after 
     the semicolon at the end.
       (20) In section 206A(a)(2)(A), strike ``regulator agency'' 
     and insert ``regulatory agency''.
       (21) In section 207(c)(5)(B)(i)(I), insert ``and'' after 
     the semicolon at the end.
       (22) In the heading for subparagraph (A) of section 
     207(d)(3), strike ``to'' and insert ``with''.
       (23) In section 207(f)(3)(A), strike ``category or 
     claimants'' and insert ``category of claimants''.
       (24) In section 209(a)(8), strike the period at the end and 
     insert a semicolon.
       (25) In section 216(n), insert ``any action'' before ``that 
     is required''.
       (26) In section 304(b)(3), strike ``the affairs or such 
     credit union'' and insert ``the affairs of such credit 
     union''.
       (27) In section 310, strike ``section 102(e)'' and insert 
     ``section 102(d)''.

     SEC. 803. OTHER TECHNICAL CORRECTIONS.

       (a) Section 1306 of title 18, United States Code, is 
     amended by striking ``5136A'' and inserting ``5136B''.
       (b) Section 5239 of the Revised Statutes of the United 
     States (12 U.S.C. 93) is amended by redesignating the second 
     of the 2 subsections designated as subsection (d) (as added 
     by section 331(b)(3) of the Riegle Community Development and 
     Regulatory Improvement Act of 1994) as subsection (e).

     SEC. 804. REPEAL OF OBSOLETE PROVISIONS OF THE BANK HOLDING 
                   COMPANY ACT OF 1956.

       (a) In General.--Section 2 of the Bank Holding Company Act 
     of 1956 (12 U.S.C. 1841) is amended--
       (1) in subsection (c)(2), by striking subparagraphs (I) and 
     (J); and
       (2) by striking subsection (m) and inserting the following 
     new subsection:
       ``(m) [Repealed]''.
       (b) Technical and Conforming Amendments.--Paragraphs (1) 
     and (2) of section 4(h) of the Bank Holding Company Act of 
     1956 (12 U.S.C. 1843(h)) are each amended by striking ``(G), 
     (H), (I), or (J) of section 2(c)(2)'' and inserting ``(G), or 
     (H) of section 2(c)(2)''.

        TITLE IX--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS

     SEC. 901. EXCEPTION FOR CERTAIN BAD CHECK ENFORCEMENT 
                   PROGRAMS.

       (a) In General.--The Fair Debt Collection Practices Act (15 
     U.S.C. 1692 et seq.) is amended--
       (1) by redesignating section 818 as section 819; and
       (2) by inserting after section 817 the following new 
     section:

     ``Sec. 818. Exception for certain bad check enforcement 
       programs operated by private entities

       ``(a) In General.--If--
       ``(1) a State or district attorney establishes, within the 
     jurisdiction of such State or district attorney and with 
     respect to alleged bad check violations that do not involve a 
     check described in subsection (c), a pretrial diversion 
     program for alleged bad check offenders who agree to 
     participate voluntarily in such program to avoid criminal 
     prosecution and are not described in subsection (b);
       ``(2) a private entity, that is subject to an 
     administrative support services contract with a State or 
     district attorney and operates under the direction, 
     supervision and control of such State or district attorney, 
     operates the pretrial diversion program described in 
     paragraph (1); and
       ``(3) in the course of performing duties delegated to it by 
     a State or district attorney under the contract, the private 
     entity referred to in paragraph (2)--
       ``(A) complies with the penal laws of the State;
       ``(B) conforms with the terms of the contract and 
     directives of the State or district attorney;
       ``(C) does not exercise independent prosecutorial 
     discretion;
       ``(D) contacts any alleged offender referred to in 
     paragraph (1) for purposes of participating in a program 
     referred to in such paragraph only--
       ``(i) as a result of any determination by the State or 
     district attorney that sufficient evidence of a bad check 
     violation under State law exists and that contact with the 
     alleged offender for purposes of participation in the program 
     is appropriate; or
       ``(ii) as otherwise permitted in response to evidence of a 
     bad check;
       ``(E) includes as part of an initial written communication 
     with an alleged offender a clear and conspicuous statement 
     that--
       ``(i) the alleged offender may dispute the validity of any 
     alleged bad check violation through a procedure established 
     and supervised by the State or district attorney, together 
     with an explanation of how such a dispute may be initiated; 
     and
       ``(ii) where the alleged offender knows, or has reasonable 
     cause to believe, that the alleged bad check violation is the 
     result of theft or forgery of the check, identity theft, or 
     other fraud that is not the result of the alleged offender's 
     conduct, the alleged offender may file a crime report with 
     the appropriate law enforcement agency and have further 
     contacts or restitution efforts suspended until the question 
     of the theft or forgery of the check, identity theft, or 
     other fraud has been resolved, together with clear 
     instructions on how to file such crime report; and
       ``(F) charges only fees in connection with services under 
     the contract that--
       ``(i) have been authorized by the contract with the State 
     or district attorney; and
       ``(ii) conform with the schedule of reasonable charges for 
     such services which shall be established by the National 
     District Attorney's Association, after consultation with the 
     Commission and representatives of interested business and 
     consumer organizations,

     the private entity shall be treated as an officer of the 
     State and excluded from the definition of debt collector, 
     pursuant to the exception provided in section 803(6)(C), with 
     respect to the entity's operation of the program described in 
     paragraph (1) under the contract described in paragraph (2).
       ``(b) Certain Offenders Excluded.--An alleged bad check 
     offender is described in this

[[Page 3020]]

     subsection if a private entity described in subsection (a)(2) 
     can determine from available records that such offender--
       ``(1) was convicted of a bad check offense in the 3 years 
     prior to issuing the bad check under consideration; or
       ``(2) participated in a pretrial diversion program in the 
     18 months prior to issuing the bad check under consideration.
       ``(c) Certain Checks Excluded.--A check is described in 
     this subsection if the check involves, or is subsequently 
     found to involve--
       ``(1) a postdated check presented in connection with a 
     payday loan, or other similar transaction, where the holder 
     of the check knew that the issuer had insufficient funds at 
     the time the check was made, drawn or delivered;
       ``(2) a stop payment order where the issuer acted in good 
     faith and with reasonable cause in stopping payment on the 
     check;
       ``(3) a check dishonored because of an adjustment to the 
     issuer's account by the financial institution holding such 
     account without providing notice to the person at the time 
     the check was made, drawn or delivered;
       ``(4) a check for partial payment of a debt where the 
     holder had previously accepted partial payment for such debt;
       ``(5) a check issued by a person who was not competent, or 
     was not of legal age, to enter into a legal contractual 
     obligation at the time the check was made, drawn or 
     delivered; or
       ``(6) a check issued to pay an obligation arising from a 
     transaction that was illegal in the jurisdiction of the State 
     or district attorney at the time the check was made, drawn or 
     delivered.
       ``(d) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) State or district attorney.--The term `State or 
     district attorney' means the chief elected or appointed 
     prosecuting attorney in a district, county (as defined in 
     section 2 of title 1, United States Code), municipality, or 
     comparable jurisdiction, including State attorneys general 
     who act as chief elected or appointed prosecuting attorneys 
     in a district, county (as so defined), municipality or 
     comparable jurisdiction, who may be referred to by a variety 
     of titles such as district attorneys, prosecuting attorneys, 
     commonwealth's attorneys, solicitors, county attorneys, and 
     state's attorneys, and who are responsible for the 
     prosecution of State crimes and violations of jurisdiction-
     specific local ordinances.
       ``(2) Check.--The term `check' has the same meaning as in 
     section 3(6) of the Check Clearing for the 21st Century Act.
       ``(3) Bad check.--The term `bad check' means any check 
     that--
       ``(A) the issuer knew, or should have known, would not be 
     paid upon presentment because the issuer--
       ``(i) had no account with the drawee financial institution 
     at the time the check was made, drawn, or delivered;
       ``(ii) had closed the account upon with the check was made 
     or drawn prior to the time the check was made, drawn, or 
     delivered; or
       ``(iii) used a false or altered check, or false or altered 
     check account number; or
       ``(B) was refused payment by the financial institution or 
     other drawee for lack of sufficient funds and the issuer 
     failed to pay the full amount of the check, together with 
     reasonable costs as permitted by State law--
       ``(i) after receiving written notice from the holder of the 
     check that payment was refused by the drawee financial 
     institution to the extent that the timing and mode of 
     delivery of such written notice is in compliance with the 
     applicable State law for determining criminal liability for 
     bad check offenses; or
       ``(ii) in a case in which there are no applicable State law 
     requirements as described in clause (i), within 30 days of 
     receiving written notice, mailed to the issuer by certified 
     mail to the address printed on the check, or given at the 
     time the check was made, drawn or delivered or, otherwise, at 
     the address where the alleged offender resides or is found, 
     from the holder of the check that payment of 1 or more checks 
     was refused by the drawee financial institution.''.
       (b) Clerical Amendment.--The table of sections for the Fair 
     Debt Collection Practices Act is amended--
       (1) by redesignating the item relating to section 818 as 
     section 819; and
       (2) by inserting after the item relating to section 817 the 
     following new item:

``818. Exception for certain bad check enforcement programs operated by 
              private entities.''.

     SEC. 902. OTHER AMENDMENTS.

       (a) Legal Pleadings.--Section 809 of the Fair Debt 
     Collection Practices Act (15 U.S.C. 1692g) is amended by 
     adding at the end the following new subsection:
       ``(d) Legal Pleadings.--A communication in the form of a 
     formal pleading in a civil action shall not be treated as an 
     initial communication for purposes of subsection (a).''.
       (b) Notice Provisions.--Section 809 of the Fair Debt 
     Collection Practices Act (15 U.S.C. 1692g) is amended by 
     adding after subsection (d) (as added by subsection (a) of 
     this section) the following new subsection:
       ``(e) Notice Provisions.--The sending or delivery of any 
     form or notice which does not request the payment of a debt 
     and is expressly required by any other Federal or State law 
     or regulation, including the Internal Revenue Code of 1986, 
     title V of Gramm-Leach-Bliley Act, and any data security 
     breach notice and privacy law shall not be treated as a 
     communication in connection with debt collection. ''.
       (c) Establishment of Right to Collect Within the First 30 
     Days.--Section 809(b) of the Fair Debt Collection Practices 
     Act (15 U.S.C. 1692g(b)) is amended by striking ``If the 
     consumer'' and inserting ``Collection activities and 
     communications may continue during any 30-day period referred 
     to in subsection (a). However, if the consumer''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Oxley), and the gentleman from Kansas (Mr. Moore) each will 
control 20 minutes.
  The Chair recognizes the gentleman from Ohio.
  Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume.
  Today the House will consider H.R. 3505, the Financial Services 
Regulatory Relief Act of 2005. H.R. 3505 is intended to alter or 
eliminate statutory banking provisions to lessen the growing regulatory 
burden on insured depository institutions as well as make technical 
corrections to current law.
  The bill contains a broad range of constructive provisions that, 
taken as a whole, will allow banks, thrifts, and credit unions to 
devote more resources to the business of providing financial services 
and less to compliance with outdated and unneeded regulations.
  While effective regulation of the financial services industry is 
central to the preservation of public trust, this legislation will 
benefit consumers and the economy by lowering costs and improving 
productivity. I want to congratulate Mr. Hensarling, the lead author of 
the legislation, along with Mr. Moore, who both introduced H.R. 3505 
last July.
  The bill included virtually all of H.R. 1375, which passed the House 
in 2004 by a vote of 392-25, plus a new title addressing Bank Secrecy 
Act issues and over 20 other new sections. Mrs. Capito also deserves 
recognition for her longstanding support of regulatory relief 
legislation. Indeed, it was her legislation that passed in 2004.
  Following H.R. 3505's introduction, Chairman Bachus held 2 days of 
legislative hearings by the Financial Institution Subcommittee, with 
witnesses from both Federal and State regulatory authorities, the 
banking thrift and credit union industries, and the Financial Crimes 
Enforcement Network. Last November, the Committee on Financial Services 
approved H.R. 3505 by a vote of 67-0. The bill was sequentially 
referred to the Committee on the Judiciary, which approved it last 
month by a voice vote.
  Mr. Speaker, the financial services industry is laboring under an 
enormous regulatory burden. While many of the regulations are necessary 
to protect consumers and meet other worthy public policy objectives, a 
number are clearly burdensome. For this reason, shortly after I assumed 
the chairmanship of the committee, I asked the financial regulators and 
industry trade groups to give us their best advice on how we could ease 
regulatory requirements faced by insured depositories. The goal was to 
free depository institutions from unduly burdensome regulations so they 
can better serve their customers and communities.
  It was clear then, as it is today, that there also needs to be a 
counterbalance to the significant compliance responsibilities placed on 
depository institutions by the USA PATRIOT Act as well as other 
government efforts to counterterrorist financing. Excessive regulation 
affects all sectors of the financial services industry and presents the 
greatest burden for smaller institutions. For small banks to continue 
to serve their historic role as a financial lifeline for local 
communities, they must be free to operate in a regulatory environment 
that does not constrain them with arduous requirements.
  H.R. 3505, for instance, includes the following provisions: national 
banks could more easily operate as subchapter S corporations to avoid 
double tax on a bank's earnings, as well as choose among different 
forms of business organizations. Thrift institutions are given some of 
the same investment, lending and business organization flexibility 
available to banks. Credit unions would have wider options for 
investments, lending, mergers and conversions. Regulators are given 
more latitude in scheduling exams, sharing data, retaining records, and 
streamlining reports of condition. And clerical and

[[Page 3021]]

technical amendments are made to several banking statutes.
  The bill's title VII, Bank Secrecy Act Compliance Burden Reduction, 
addresses financial institutions' concerns that some of the work they 
are being asked to do in the fight against financial crimes is 
unnecessary or duplicative.
  I would like to thank former FinCEN Director Fox, Mr. Hensarling, and 
Chairman Bachus, as well as Mr. Frank and Mr. Gutierrez, for their 
efforts in creating this title which balances law enforcement's needs 
with the industry's very real concerns about excessive burdens.
  The first section of title VII focuses on reducing the number of 
currency transaction reports, or CTRs, that must be filed by 
institutions on transactions involving large sums of cash, reports that 
can be extraordinarily useful to law enforcement but which often are 
filed on obviously unremark-
able transactions, such as a deposit by a large discount store. It 
streamlines the process for exempting institutions from reporting such 
transactions. Other sections of title VII seek to eliminate 
inconsistencies or duplicative requirements in conjunction with the 
filing of suspicious activity reports, or SARS.
  Mr. Speaker, the financial services industry spends a great deal of 
money every year complying with outdated and ineffective regulations. 
That is money that could instead be lent for new homes, new cars, and 
new projects, fueling job growth in local communities. The sooner we 
enact this legislation, the sooner we will provide needed relief to 
depository institutions and increase financial opportunities for both 
consumers and businesses. So I urge Members to support passage of H.R. 
3505.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MOORE of Kansas. Mr. Speaker, I would like to thank Chairman 
Oxley and Ranking Member Frank for supporting H.R. 3505 and ensuring 
its consideration on the House floor today. I would also like to thank 
Congressman Hensarling for working with me to introduce the Financial 
Services Regulatory Relief Act. The Financial Services Committee has a 
strong record of bipartisanship, and I am glad that has extended to 
this bill. Regulatory relief should not be about Republicans or 
Democrats; it should be about doing the right thing for the lenders in 
our communities who play such an important part in expanding home 
ownership and creating opportunities for businesses and for consumers.
  Our committee passed this legislation November by a vote of 67-0, and 
with this being the last year of his chairmanship, I wish to thank 
particularly Chairman Mike Oxley for working across party lines and 
forging the kind of consensus that led to a unanimous vote in our 
committee. This is really the model for how Congress should operate and 
demonstrates that bipartisan efforts on behalf of our constituents can 
yield positive results. During the 108th Congress, the House passed a 
very similar reg-relief bill by a vote of 392-25. I hope the House will 
pass this bill by a similarly wide margin.
  Mr. Speaker, small lenders in our communities particularly feel the 
burden of duplicative and unnecessary regulations. Whenever Congress or 
the regulatory agencies impose a new burden on industry, small 
institutions must devote a large percentage of their staffs' time to 
review the new law or regulation to determine if it can and how it will 
affect them. Compliance with new laws and regulations, while necessary, 
nearly always takes a large amount of time that businesses can't devote 
to serving their customers and our constituents.
  Strong regulation of our country's financial system is absolutely 
essential, but Congress and the financial regulators have a 
responsibility to strike the right balance in this area, and I believe 
H.R. 3505 is an important step in the right direction. Since coming to 
Congress, I have heard from many depository institutions in my district 
and throughout Kansas. I have tried to address in H.R. 3505 some of the 
concerns that I have heard about.
  According to the Office of the State Bank Commissioner in Kansas, 
assets for four State-chartered banks, thrifts and mortgage lenders 
have reached an all-time high of approximately $29 billion. As these 
businesses have prospered, so too have they faced increasing 
requirements to comply with both old and new regulatory burdens, 
including some created by the Bank Secrecy Act.
  H.R. 3505, Mr. Speaker, seeks to provide relief from some of these 
new burdens to our financial institutions in a way that preserves our 
ability to effectively track terrorist financing and build upon our 
successes in freezing the funds of terrorists. Representative 
Hensarling and I, together with the bill's 39 bipartisan cosponsors and 
67 supporters on the Financial Services Committee, agree that waging a 
strong war on terror and providing some reg relief to our financial 
institutions are not incompatible goals.
  Additionally, Mr. Speaker, H.R. 3505 provides two new sections of reg 
relief for our credit unions that were not included in the previous 
version of this measure, H.R. 1375.
  Mr. Speaker, I yield 4 minutes to the gentlewoman from New York (Mrs. 
Maloney).
  Mrs. MALONEY. Mr. Speaker, I thank the gentleman for yielding me this 
time and for his leadership on this bill. I also congratulate the 
leadership on both sides of the aisle, and I rise in strong support of 
H.R. 3505. The Financial Services Committee passed it out in October. 
This bill has a number of provisions that I strongly support and which 
I have worked in a bipartisan way to get into this legislation.
  As a representative from New York City, the financial center of the 
United States, I am concerned about the burdens that regulation and 
reporting requirements impose on our financial institutions, 
particularly those that are not mega-institutions but are mid-sized and 
smaller. I know that the vast majority of my colleagues on both sides 
of the aisle share this concern, and we have worked together to address 
it in this legislation.
  Last year, we passed regulatory relief by an overwhelming majority in 
the House but it failed in the Senate. I voted for that bill, although 
I thought it could use some improvement, and this bill is improved by 
the addition of several provisions dealing with issues that are of 
special concern to me, such as the extraordinary burden of compliance 
under which our financial institutions are required to operate.
  Wherever I go in my district, smaller institutions tell me how hard 
and costly it is to comply with the new requirements of the Bank 
Secrecy Act, to file currency transaction reports, and to comply with 
the new requirements of the PATRIOT Act Know Your Customer 
requirements. They say these requirements in many cases are redundant 
and are excessively burdensome. The burdens are particularly heavy for 
smaller institutions.
  I worked with Representative Renzi to develop the language in this 
bill that eliminates unnecessary currency transaction reports so that 
banks can focus on suspicious activity reports, or SARS, which are a 
much more useful tool, according to law enforcement, to track money 
laundering and terrorist financing.
  This measure was proposed by the Treasury Department and law 
enforcement. We heard from FinCEN, the lead agency on money laundering, 
that the masses of useless CTRs being filed impeded law enforcement and 
were often not even looked at. And the General Accounting Office, the 
independent body that reviews government activities, confirmed that in 
a report last year also supporting streamlining the process. The 
banking regulators also expressed strong support for this proposal. OCC 
and OTS both agreed with FinCEN that the CTR filing process had become 
counterproductive in terms of national security.
  This bill also includes other provisions relieving the unnecessary 
burden on community banks, including increased commercial and small 
business lending authority for Federal savings associations, regulation 
of thrift trust activities in a manner comparable to

[[Page 3022]]

bank trust activities, and an exemption from annual privacy notice 
requirements for financial institutions that do not share customer 
information.
  This bill also contains regulatory relief for credit unions, taken 
from the Credit Union Regulatory Improvement Act, which I have 
cosponsored for several Congresses.
  Mr. Speaker, I urge my colleagues to support this bill. I look 
forward to the passage in this House and hopefully in the other body 
also.
  Mr. MOORE of Kansas. Mr. Speaker, I reserve the balance of my time.
  Mr. OXLEY. Mr. Speaker, I now yield 2 minutes to the gentlewoman from 
New York (Mrs. Kelly), the chairwoman of the Oversight Subcommittee.
  Mrs. KELLY. Mr. Speaker, I rise today in strong support of H.R. 3505. 
This bill contains many important items that will benefit banks, credit 
unions, and, most importantly, the consumers in our country, making it 
easier and cheaper to receive financial services.

                              {time}  1315

  The bill also enhances our national security. Section 706 of the 
bill, authored by myself and Mrs. Maloney of New York, will establish a 
certification regime for foreign countries that clearly identifies to 
taxpayers and financial institutions which countries are not enforcing 
laws against money laundering and terrorist financing. This 
certification regime will compel foreign nations to better enforce 
their laws and seek technical assistance from the United States.
  Our government has a duty to inform its citizens of risks in doing 
business with countries that are not doing enough to protect their 
financial institutions from money laundering and terror finance, Dubai 
and the UAE, for instance. This bill gives our government a cost-free, 
simple means to do it. I urge the House to join with me in passing this 
bill.
  Mr. MOORE of Kansas. Mr. Speaker, I reserve the balance of my time.
  Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentleman from 
Alabama (Mr. Bachus), the chairman of the Subcommittee on Financial 
Institutions.
  Mr. BACHUS. Mr. Speaker, let me say under Chairman Oxley's 
leadership, this committee has been committed for almost 6 years with 
freeing depository institutions of unduly and unnecessary burdensome 
regulations.
  When we started this quest, the burden on those institutions was 
estimated at $25 billion a year. It is now $36 billion a year, and that 
is despite the fact that we have passed two or three pieces of 
legislation that have done away with some of these regulations.
  Last year the House passed overwhelmingly similar legislation to this 
legislation; it unfortunately died in the other body. The legislation 
before us has a potential to save somewhere between $15 and $20 
billion, and that is not to depository institutions; that is actually 
money that will be available to loan to Americans to finance home 
purchases, cars, property, or it will be available to pay greater 
yields on their deposits. So this is a very good bill for America. It 
will strengthen not only our financial institutions, but our economy.
  I would like to commend the following people: Mrs. Maloney and Mr. 
Renzi. Mrs. Maloney has already spoken about the importance of the 
seasoned investor exemption where people who deal with banks on a daily 
and weekly basis depositing money, where those banks will not have to 
file unnecessary paperwork.
  It will aid Bill Fox at FinCEN, who is in charge of preventing money 
laundering and says that this provision will make it easier for law 
enforcement, for the FBI and other agencies to track money laundering 
and eliminate costly filings.
  I would like to commend Mr. Ryun for some very strong provisions 
helping our community and independent banks; and Mr. Kanjorski and Mr. 
Royce.
  Finally, I would say to Mr. Hensarling and Mr. Moore, you have done a 
fine job on this bill, and I commend you and commend this product.
  Mr. MOORE of Kansas. Mr. Speaker, I reserve the balance of my time.
  Mr. OXLEY. Mr. Speaker, I yield 5 minutes to the gentleman from Texas 
(Mr. Hensarling), the author of this legislation.
  Mr. HENSARLING. Mr. Speaker, first, I want to thank Chairman Oxley 
for his great commitment to this legislation and his critical 
leadership in tackling this important topic lo these many years. And I 
also want to thank Chairman Bachus for his outstanding leadership on 
the subcommittee level. And finally, I want to thank the ranking member 
(Mr. Frank of Massa-
chusetts) and the gentleman from Kansas (Mr. Moore) for their 
bipartisan efforts in ensuring that we help reduce the regulatory 
burden on our Nation's financial institutions.
  With thoughtful regulatory relief, Congress can free up more capital 
for small businesses and families. Excessive, redundant, costly 
regulations can make credit more expensive and less accessible. These 
regulations can keep Americans from obtaining their first mortgage, 
buying their first car, financing a child's education, or starting a 
small business that creates needed new jobs.
  Mr. Speaker, we know that the Federal regulatory burden falls 
particularly disproportionately on our smaller banks and credit unions. 
For example, the total number of small community banks has declined by 
almost a third in just one decade. Now, I am sure there are a number of 
reasons for all of these consolidations and mergers that have taken 
place, but from speaking to folks in my home State of Texas, certainly 
the burden and cost of Federal regulation rank among the top reasons, 
and certainly one of the top challenges to their continued 
profitability and their continued viability.
  Furthermore, since 1989, bank regulators have promulgated over 850 
new regulations. That is about 50 new regulations a year. Can we really 
expect our small, community-based financial institutions to keep up 
with this pace? I do not believe we can, and I do not believe we 
should.
  This is worrisome because I believe it is these small, independent 
financial institutions that continue to be the economic lifeblood of 
many of our rural communities and a number of our inner-city 
neighborhoods. Let me offer one example from my home congressional 
district, First State Bank of Athens, Texas. This bank makes 50 to 75 
charitable contributions each year to community groups in Henderson 
County, Texas, the American Heart Association, Meals on Wheels, 
Disabled American Veterans, and the East Texas Arboretum, to name a 
few. This bank has funded a local employer, Texas Ragtime, that has 90 
employees, not to mention the jobs that they helped create at Nelson's 
Henderson County Door and Futurematrix Medical Devices. Last year they 
made 503 small business loans and an additional 314 small agricultural 
loans.
  Yet we need to know that with burdensome regulatory compliance, every 
dollar they spend on regulatory compliance is a dollar they cannot 
spend on Meals on Wheels or to create new jobs at Ragtime. The same is 
true for every other small financial institution across our Nation. We 
in Congress can never lose sight of this fact.
  This same bank in Athens, Texas, like thousands across the Nation, 
spends close to half a million dollars a year combined each year on BSA 
compliance, Reg B, Reg E, Reg D, CRA, HMDA, HOEPA, Reg O, Reg X, and 
Reg Z, just to name a few.
  If Congress cannot determine a compelling reason for any existing 
regulation in a modern marketplace, I believe we have a duty to modify 
or eliminate that regulation.
  Now, I am particularly pleased about the relief this bill offers for 
currency transaction reports. Unfortunately, the environment we are in 
today has led many banks to file their CTRs, cash transaction reports, 
and their suspicious activity reports in a highly defensive manner. 
Under this legislation I believe the majority of the 13 million-plus 
CTRs filed annually would stop, saving many, many hours and many, many 
thousands of dollars in savings in filling out these forms. This would

[[Page 3023]]

also, perhaps more importantly, allow our law enforcement officials to 
better direct resources and help properly evaluate the suspicious 
activity reports, and thus better fight crime and terrorist financing.
  Mr. Speaker, finally, this bill has received rare unanimous support 
when it was reported out of the Committee on Financial Services. It 
represents the hard work of Members on both sides of the aisle. I do 
believe that this bill will provide substantive regulatory relief for 
our financial institutions, and that will put more money, more capital, 
in the hands of those on the front lines of community lending and help 
American families realize their dreams.
  Mr. MOORE of Kansas. Mr. Speaker, I reserve the balance of my time.
  Mr. OXLEY. Mr. Speaker, I yield 3 minutes to the gentleman from Ohio 
(Mr. Gillmor).
  Mr. GILLMOR. Mr. Speaker, I thank my distinguished chairman for 
yielding me this time, and I want to thank Chairman Oxley and Chairman 
Bachus, as well as Mr. Hensarling and Mr. Frank, for their diligence on 
this critical piece of legislation.
  There is little doubt that our regulatory structure has contributed 
to the United States becoming the model for the world when it comes to 
financial services. But without the constant attention to the burdens 
of outdated rules and regulations, our markets can be dragged down by 
unnecessary costs.
  I am pleased to see that the bill incorporates my compromise with 
Ranking Member Frank regarding so-called industrial loan companies. It 
remains my belief that these institutions need to be reined in, and 
that the historic wall separating banking from commerce has to remain 
strong. There is no reason to treat one type of financial institution, 
an ILC, in a more favorable way than we treat other financial 
institutions.
  So I think if this bill reaches the President's desk, which I hope it 
will, we have helped ensure that our depository institutions remain the 
most efficient in the world.
  Mr. MOORE of Kansas. Mr. Speaker, I yield myself the balance of my 
time.
  I want to thank Mr. Hensarling, who was not here when I thanked 
Members, and I thank the gentleman for the opportunity to work with 
him.
  I also would like to thank the subcommittee chairman, Mr. Bachus, and 
thank the chairman of the full committee, Chairman Oxley.
  Mr. Speaker, I yield back the balance of my time.
  Mr. OXLEY. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I again reiterate my thanks to the members of the 
committee for a strong bipartisan vote and a very good effort. We are 
encouraged now on the other side of the Capitol that they have had 
their hearing, and Senator Crapo and others are working towards the 
same goal as the House is, and we expect that bill to pass today.
  I particularly thank the gentleman from Ohio (Mr. Gillmor) for 
crafting a very key compromise amendment with the ranking member, the 
gentleman from Massachusetts (Mr. Frank), dealing with the ILCs, one of 
the tougher issues that the committee has had to deal with over some 
time, and yet that compromise has stood the test of time, and I 
congratulate particularly Mr. Gillmor and Mr. Frank for their diligence 
on that.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Terry). The question is on the motion 
offered by the gentleman from Ohio (Mr. Oxley) that the House suspend 
the rules and pass the bill, H.R. 3505, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. OXLEY. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this question will 
be postponed.

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