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Public Statements

Financial Services Regulatory Relief Act of 2003 - Part III

By:
Date:
Location: Washington, DC


(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".
© CONFORMING AMENDMENT TO THE INVESTMENT COMPANY ACT OF 1940.-Section 10© of the Investment Company Act of 1940 (15 U.S.C. 80a-10©), as amended by section 213© 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 10 percent of the savings association's capital stock actually paid in and unimpaired and 10 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© 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©(4) of the Home Owners' Loan Act (12 U.S.C. 1464©(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:
"(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 politicalsubdivision 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;
"© 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®(1) of the Home Owners' Loan Act (12 U.S.C. 1464®(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 State in which such savings association has its main office.".
SEC. 214. CLARIFICATION OF APPLICABILITY OF CERTAIN PROCEDURAL DOCTRINES.
Section 11A(d) of the Federal Deposit Insurance Act (12 U.S.C. 1821a(d)) is amended-
(1) by striking "LEGAL PROCEEDINGS.-Any judgment" and inserting "LEGAL PROCEEDINGS.-
"(1) IN GENERAL.-Any judgment"; and
(2) by adding at the end the following new paragraph:
"(2) CLARIFICATION OF APPLICABILITY OF CERTAIN PROCEDURAL DOCTRINES.-In any proceeding seeking a monetary recovery against the United States, or an agency or official thereof, based upon actions of the Federal Savings and Loan Insurance Corporation prior to its dissolution, or the Federal Home Loan Bank Board prior to its dissolution, and arising from the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 or its implementation, and where any monetary recovery in such proceeding would be paid from the FSLIC Resolution Fund or any supplements thereto, neither the United States Court of Federal Claims, the United States Court of Appeals for the Federal Circuit, nor any other court of competent jurisdiction shall dismiss, or affirm on appeal the dismissal of, the claims of any party seeking such monetary recovery, on the basis of res judicata, collateral estoppel, or any similar doctrine, defense, or rule of law, based upon any decision, opinion, or order of judgment entered by any court prior to July 1, 1996. Unless some other defense is applicable, in any such proceeding, the United States Court of Federal Claims, the United States Court of Appeals for the Federal Circuit, and any other court of competent jurisdiction shall review the merits of the claims of the party seeking such monetary relief and shall enter judgment accordingly.".
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.
"(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).
"© 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:
"© 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) INVESTMENT FOR THE CREDIT UNION'S OWN ACCOUNT.-
"(1) IN GENERAL.-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
© 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 electronic fund transfers); and
"(B) to cash checks and money orders and receive 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 © 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 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.".
© REIMBURSEMENT FOR LOST WAGES DUE TO SERVICE ON CREDIT UNION BOARD NOT TREATED AS COMPENSATION.-Section 111© of the Federal Credit Union Act (12 U.S.C. 1761©) 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)(vi)(I) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated by section 303 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©(7) of the Clayton Act (15 U.S.C. 18a©(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)".
© DEFINITION OF APPROPRIATE FEDERAL BANKING AGENCY.-Section 210A© of the Investment Advisers Act of 1940 (15 U.S.C. 80b-10a©) 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.

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) 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".
© 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. 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.
"© 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);
(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";
© 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:
"(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©(2)" and inserting "paragraph (1) or (2) of section 18©, 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
"© 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 © of section 4 of the National Bank Consolidation and Merger Act (12 U.S.C. 215a-1©) is amended to read as follows:

"© 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.".
© 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), 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© of the Federal Deposit Insurance Act;";
(B) by striking "and" at the end of paragraph (7);
© 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©(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
© 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 the amount of investment by a Federal savings association contained in section 5©(4)(B) of the Home Owners' Loan Act" after "relating to banks".
(7) Section 4© of the Bank Service Company Act (12 U.S.C. 1864©) is amended by inserting "or State savings association" after "State bank" each place such term appears.
(8) 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.
(9) 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.".
(10) 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".
(11) 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), by striking "insured bank" and inserting "insured depository institution"; and
© in subsection ©--
(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".
(12) 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";

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