Financial Services Regulatory Relief Act of 2003 - Part IV
(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
© 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)©, 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".
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:
"© 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)©(iii)(II) of the Home Owners' Loan Act (12 U.S.C. 1467a(m)(4)©(iii)(II)) is amended by striking "service corporation" each place such term appears and inserting "service company".
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.".
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:
"© 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
"© 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:
"© 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"; and
(2) by adding at the end the following new clause:
"(ii) OLD RECORDS.-In the case of records of an insured depository institution which are at least 10 years old as of the date the Corporation is appointed as the receiver of such depository institution, 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.
"(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. 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 INSTITUTION.-
(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), by striking "the depository" each place such term appears and inserting "any depository";
(B) in subparagraph (B)(i), by inserting "of which the subject of the order is an institution-affiliated party" before the period at the end;
© in subparagraph ©, by striking "the depository" each place such term appears and inserting "any depository";
(D) in subparagraph (D)(i), by inserting "of which the subject of the order is an institution-affiliated party" after "upon the depository institution"; and
(E) by adding at the end the following new subparagraph:
"(E) CONTINUATION OF AUTHORITY.-A Federal banking agency may issue an order under this paragraph with respect to an individual who is an institution-affiliated party at a depository institution at the time of an offense described in subparagraph (A) without regard to-
"(i) whether such individual is an institution-affiliated party at any depository institution at the time the order is considered or issued by the agency; or
"(ii) whether the depository institution 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 agency.".
(2) CLERICAL AMENDMENT.-Section 8(g) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g)) is amended by striking "(g)" and inserting the following new subsection heading:
"(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;
© in subparagraph ©, by striking "the credit union" each place such term appears and inserting "any credit union";
(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. 607. 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, before acting on any application for approval of a merger transaction, the responsible agency, unless the agency finds that it must act immediately in order to prevent the probable failure of a depository institution involved, shall-
"(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) 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.-The penultimate sentence of section 18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended to read as follows: "If the agency has advised the Attorney General under paragraph (4)(B) 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. 608. 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. 609. SHORTENING OF POST-APPROVAL ANTITRUST REVIEW PERIOD WITH THE AGREEMENT OF THE ATTORNEY GENERAL.
(a) ANTITRUST REVIEWS UNDER THE BANK HOLDING COMPANY ACT OF 1956.-The 4th sentence of section 11(b) of the Bank Holding Company Act of 1956 (12 U.S.C. 1849(b) is amended by striking "15 calendar days" and inserting "5 calendar days".
(b) ANTITRUST REVIEWS UNDER THE FEDERAL DEPOSIT INSURANCE ACT.-The last sentence of section 18(c)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended by striking "15 calendar days" and inserting "5 calendar days".
SEC. 610. 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:
"© CONFIDENTIAL INFORMATION RECEIVED FROM FOREIGN SUPERVISORS.-
"(1) IN GENERAL.-Except as provided in paragraph (3), a Federal banking agency may not be compelled to disclose information received from a foreign regulatory or supervisory authority if-
"(A) 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. 611. PROHIBITION ON PARTICIPATION BY CONVICTED INDIVIDUAL.
Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) is amended by inserting after subsection © (as added by section 603 of this title) the following new subsections:
"(d) BANK HOLDING COMPANIES.-Subsections (a) and (b) shall apply to any bank holding company, any subsidiary (other than a bank) of 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, subsidiary, 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.".
SEC. 612. 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. 613. EXAMINERS OF FINANCIAL INSTITUTIONS.
(a) OFFER OF CREDIT TO BANK EXAMINER.-Section 212 of title 18, United States Code, is amended to read as follows:"§212. Offer of credit to bank examiner
"(a) Subject to section 213(b), whoever being an officer, director or employee of a financial institution extends credit to any examiner which the examiner is prohibited from accepting under section 213 shall be fined under this title or imprisoned not more than one year, or both; and may be fined a further sum equal to the amount of the credit extended.
"(b) For purposes of this section, the following definitions shall apply:
"(1) The term 'financial institution' does not include a credit union, a Federal reserve bank, a Federal home loan bank, or a depository institution holding company.
"(2) The term 'examiner' means any person-
"(A) appointed by a Federal financial institution regulatory agency or pursuant to the laws of any State to examine a financial institution; or
"(B) elected under the law of any State to conduct examinations of any financial institution.
"(3) The term 'Federal financial institution regulatory agency' means-
"(A) the Comptroller of the Currency;
"(B) the Board of Governors of the Federal Reserve System;
"© the Director of the Office of Thrift Supervision;
"(D) the Federal Deposit Insurance Corporation;
"(E) the Federal Housing Finance Board;
"(F) the Farm Credit Administration;
"(G) the Farm Credit System Insurance Corporation; and
"(H) the Small Business Administration.".
(b) ACCEPTANCE OF CREDIT BY A BANK EXAMINER.-Section 213 of title 18, United States Code, is amended to read as follows:"§213. Acceptance of credit by bank examiner
"(a) Whoever, being an examiner, accepts an extension of credit from any financial institution that the examiner examines or has authority to examine, or from any person connected with any such financial institution, shall be fined under this title or imprisoned not more than one year, or both; and may be fined a further sum equal to the amount of the credit extended, and shall be disqualified from holding office as such examiner.
"(b) Notwithstanding subsection (a) or section 212, a Federal financial institution regulatory agency may, by regulation or by order on a case-by-case basis, permit a financial institution to extend credit to an examiner, and permit an examiner to accept an extension of credit from a financial institution, if the agency determines that the extension of credit would not likely affect the integrity of any examination of a financial institution. Before prescribing regulations or issuing any order under this subsection, a Federal financial institution regulatory agency shall consult with each other Federal financial institution regulatory agency with regard to any such regulation or order. Any regulation prescribed by a Federal financial institution regulatory agency under this subsection, may exempt certain classes or categories of credit from the scope of this section or section 212, and shall provide procedures for examiners and financial institutions to request case-by-case exemption orders under this subsection, subject to subsection (c).
"© In considering any request by a financial institution or examiner for a case-by-case exemption order under subsection (b), a Federal financial institution regulatory agency shall consider such factors as the agency determines to be appropriate, including-
"(1) whether the terms and conditions of the credit being offered the examiner are generally comparable to those offered by the financial institution in connection with similar types of credit extended to other customers in similar circumstances;
"(2) the nature and extent of any other relationship the examiner has with the financial institution or any officer, director, or employee of the financial institution;
"(3) the proximity in time between any examination of the financial institution in which the examiner participated, or is scheduled to participate, and the extension, or the offer of an extension, of credit;
"(4) whether there are any other circumstances involving the transaction, or the proposed transaction, that may be perceived as providing the examiner with preferential treatment; and
"(5) any other fact or circumstance the agency may consider to be appropriate under the circumstances.
"(d) Notwithstanding subsection (a) or section 212, an examiner employed by a Federal financial institution regulatory agency may apply for and receive a credit card, or otherwise be approved as a cardholder, under any credit card account under an open end consumer credit plan, to the extent the terms and conditions applicable with respect to such account, and any credit extended under such account, are no more favorable generally to the examiner than the terms and conditions that are generally applicable to credit card accounts offered by the same financial institution to other cardholders under open end consumer credit plans.
"(e) For purposes of this section, the following definitions shall apply:
"(1) The terms 'examiner', 'Federal financial institution regulatory agency', and 'financial institution' have the same meaning as in section 212.
"(2) The term 'credit' means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.
"(3) The term 'creditor' refers only to a person who both (A) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and (B) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors.
"(4) The term 'consumer', when used with reference to an open end credit plan, means a credit plan under which the party to whom credit is offered or extended is a natural person, and the money, property, or services which are the subject of any transaction under the plan are primarily for personal, family, or household purposes.
"(5) The term 'open end credit plan' means a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed fromtime to time on the outstanding unpaid balance. A credit plan which is an open end credit plan within the meaning of the preceding sentence is an open end credit plan even if credit information is verified from time to time.
"(6) The term 'credit card' means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit.
"(7) The term 'cardholder' means any person to whom a credit card is issued or any person who has agreed with the card issuer to pay obligations arising from the issuance of a credit card to another person.
"(8) The term 'card issuer' means any person who issues a credit card, or the agent of such person with respect to such card.".
© CLERICAL AMENDMENTS.-The table of sections for chapter 11 of title 18, United States Code, is amended by striking the items relating to sections 212 and 213 and inserting the following new items:
"212..Offer of credit to bank examiner.
"213..Acceptance of credit by bank examiner.".
SEC. 614. PARITY IN STANDARDS FOR INSTITUTION-AFFILIATED PARTIES.
Section 3(u)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1813(u)(4)) is amended by striking "knowingly or recklessly".
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.
"© 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© 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.
"© 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.".
© 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
© 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.-".
SEC. 616. COMPENSATION OF FEDERAL HOME LOAN BANK DIRECTORS.
Section 7(i) of the Federal Home Loan Bank Act (12 U.S.C. 1427(i)) is amended to read as follows:
"(i) DIRECTORS' COMPENSATION.-
"(1) IN GENERAL.-Each Federal home loan bank may pay the directors on the board of directors of the bank reasonable compensation for the time required of such directors, and reasonable expenses incurred by the directors, in connection with service on the board of directors, in accordance with resolutions adopted by the board of directors and subject to the approval of the board.
"(2) ANNUAL REPORT BY THE BOARD.-Information regarding compensation and expenses paid by the Federal home loan banks to the directors on the boards of directors of the banks shall be included in the annual report submitted to the Congress by the Board pursuant to section 2B(d).".
SEC. 617. EXTENSION OF TERMS OF FEDERAL HOME LOAN BANK DIRECTORS.
(a) IN GENERAL.-Section 7(d) of the Federal Home Loan Bank Act (12 U.S.C. 1427(d)) is amended-
(1) in the first sentence, by striking "3 years" and inserting "4 years"; and
(2) in the 2nd sentence-
(A) by striking "Federal Home Loan Bank System Modernization Act of 1999" and inserting "Financial Services Regulatory Relief Act of 2003"; and
(B) by striking "1/3" and inserting "1/4".
(b) PROSPECTIVE APPLICATION.-The amendment made by subsection (a) shall not apply to the term of office in which any director of a Federal home loan bank is serving as of the date of the enactment of this Act, including any director elected or appointed to fill a vacancy in any such term of office.
SEC. 618. BIENNIAL REPORTS ON THE STATUS OF AGENCY EMPLOYMENT OF MINORITIES AND WOMEN.
(a) IN GENERAL.-Before December 31, 2003, 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.
© 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©(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) IN GENERAL.-The appropriate State bank supervisor of the home State of an insured State bank has authority to examine and supervise the bank. The State bank supervisor of the home State of an insured State bank shall exercise its 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. Except as expressly provided in a cooperative agreement between the State bank supervisors of the home State and host State(s) 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.-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-
"(A) 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
"(B) 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. The State bank supervisor of the home State of an insured State bank shall 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. The State bank supervisor of the bank's home State shall provide such notice 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.-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 banks and includes nationwide or multi-state cooperative agreements and cooperative agreements solely between the home State and host State. Except for State bank supervisors, no provision of this subsection (h) 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) The terms 'host State', 'home State', and 'out-of-State bank' have the same meanings as in section 44(g).
"(B) 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.
"© 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) 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.".
TITLE VII-CLERICAL AND TECHNICAL AMENDMENTS
SEC. 701. 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. 702. 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©(2)(A)(i), strike "(12 U.S.C. 4703(16))".
(10) In section 120(h), strike "under 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©(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)©, 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©(5)(B)(i)(I), insert "and" after the semicolon at the end.
(22) In section 207©(8)(D)(ii)(I), insert a closing parenthesis after "Act of 1934".
(23) In the heading for subparagraph (A) of section 207(d)(3), strike "TO" and insert "WITH".
(24) In section 207(f)(3)(A), strike "category or claimants" and insert "category of claimants".
(25) In section 209(a)(8), strike the period at the end and insert a semicolon.
(26) In section 216(n), insert "any action" before "that is required".
(27) In section 304(b)(3), strike "the affairs or such credit union" and insert "the affairs of such credit union".
(28) In section 310, strike "section 102(e)" and insert "section 102(d)".
SEC. 703. 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. 704. 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 ©(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)".
The CHAIRMAN pro tempore. No amendment to the committee amendment is in order except those printed in House Report 108-439. Each amendment may be offered only in the order printed in the report, by a Member designated in the report, shall be considered read, shall be debatable for the time specified in the report, equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question.
It is now in order to consider amendment No. 1 printed in House Report 108-439.
AMENDMENT NO. 1 OFFERED BY MR. OXLEY
Mr. OXLEY. Mr. Chairman, I offer an amendment made in order under the rule.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 1 offered by Mr. Oxley:
Page 9, strike line 3 and all that follows through page 10, line 2 (and redesignate subsequent sections and any cross reference to any such section and conform the table of contents accordingly).
Page 31, line 2, strike "main" and insert "home".
Page 31, strike line 3 and all that follows through page 32, line 13 (and conform the table of contents accordingly).
Page 37, strike lines 16 and 17 and insert the following new heading:
"(b) ADDITIONAL INVESTMENT AUTHORITY.-
Page 37, line 18, strike "A Federal" and insert "In addition to any investments otherwise authorized, a Federal".
Page 47, after line 5, insert the following new paragraphs (and redesignate the subsequent paragraph accordingly):
(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:
"© 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©(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