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5-25-06, Bill Passed
Senate by Unanimous Consent
6-606, Referred to House Held at Desk
109th CONGRESS
2d Session
S. 2856
AN ACT
Be
it enacted by the Senate and House of Representatives of the
(a)
Short Title- This Act may be cited as the `Financial Services Regulatory Re=
lief
Act of 2006'.
(b)
Table of Contents- The table of contents for this Act is as follows:
Sec.
1. Short title; table of contents.
Sec.
101. Rulemaking required for revised definition =
of
broker in the Securities Exchange Act of 1934.
Sec.
201. Authorization for the Federal reserve
to pay interest on reserves.
Sec.
202. Increased flexibility for the Federal Reserve Boar=
d to
establish reserve requirements.
Sec.
301. Voting in shareholder elections.
Sec.
302. Simplifying dividend calculations for national ban=
ks.
Sec.
303. Repeal of obsolete limitation on removal
authority of the Comptroller of the Currency.
Sec.
304. Repeal of obsolete provision in the Revised
Statutes.
Sec.
401. Parity for savings associations under the Securiti=
es
Exchange Act of 1934 and the Investment Advisers Act of 1940.
Sec.
402. Repeal of overlapping rules governing purch=
ased
mortgage servicing rights.
Sec.
403. Clarifying citizenship of Federal savings associat=
ions
for Federal court jurisdiction.
Sec.
404. Repeal of limitation on loans to one borrow=
er.
Sec.
501. Leases of land on Federal facilities for credit un=
ions.
Sec.
502. Increase in general 12-year limitation of t=
erm of
Federal credit union loans to 15 years.
Sec.
503. Check cashing and money transfer services o=
ffered
within the field of membership.
Sec.
504. Clarification of definition of net worth under cer=
tain
circumstances for purposes of prompt corrective action.
Sec.
601. Reporting requirements relating to insider lending=
.
Sec.
602. Investments by insured savings associations=
in
bank service companies authorized.
Sec.
603. Authorization for member bank to use pass-t=
hrough
reserve accounts.
Sec.
604. Streamlining reports of condition.
Sec.
605. Expansion of eligibility for 18-month examination
schedule for community banks.
Sec.
606. Streamlining depository institution merger applica=
tion
requirements.
Sec.
607. Nonwaiver of privilege=
s.
Sec.
608. Clarification of application requirements for opti=
onal conversion
for Federal savings associations.
Sec.
609. Exemption from disclosure of privacy policy for
accounting firms.
Sec.
610. Inflation adjustment for the small depository
institution exception under the Depository Institution Management Interlocks
Act.
Sec.
611. Modification to cross marketing restrictions.
Sec.
701. Statute of limitations for judicial review of
appointment of a receiver for depository institutions.
Sec.
702. Enhancing the safety and soundness of insured depo=
sitory
institutions.
Sec.
703. Cross guarantee authority.
Sec.
704. Golden parachute authority and nonbank
holding companies.
Sec.
705. Amendments relating to change in bank contr=
ol.
Sec.
706. Amendment to provide the Federal Reserve Board with
discretion concerning the imputation of control of shares of a company by
trustees.
Sec.
707. Interagency data sharing.
Sec.
708. Clarification of extent of suspension, removal, and
prohibition authority of Federal banking agencies in cases of certain crime=
s by
institution-affiliated parties.
Sec.
709. Protection of confidential information received by
Federal banking regulators from foreign banking supervisors.
Sec.
710. Prohibition on participation by convicted
individuals.
Sec.
711. Coordination of State examination authority.
Sec.
712. Deputy Director; succession authority for Director=
of
the Office of Thrift Supervision.
Sec.
713. Office of Thrift Supervision representation on Bas=
el
Committee on Banking Supervision.
Sec.
714. Federal Financial Institutions Examination Council=
.
Sec.
715. Technical amendments relating to insured
institutions.
Sec.
716. Clarification of enforcement authority.
Sec.
717. Federal banking agency authority to enforce deposit
insurance conditions.
Sec.
718. Receiver or conservator consent requirement.
Sec.
719. Acquisition of FICO scores.
Sec.
720. Elimination of criminal indictments against
receiverships.
Sec. 721. Resolution of deposit insurance disputes. <= o:p>
Sec.
722. Recordkeeping.
Sec.
723. Preservation of records.
Sec.
724. Technical amendments to information sharing provis=
ion in
the Federal Deposit Insurance Act.
Sec.
725. Technical and conforming amendments relating to ba=
nks operating
under the Code of Law for the
Sec.
726. Technical corrections to the Federal Credit Union =
Act.
Sec.
727. Repeal of obsolete provisions of the Bank H=
olding
Company Act of 1956.
Sec.
728. Development of model privacy forms.
Sec.
801. Exception for certain bad check enforcement progra=
ms.
Sec.
901. Collateral modernization.
Sec.
1001. Study and report by the Comptroller Genera=
l on
the currency transaction report filing system.
Sec.
1002. Study and report on institution diversity =
and
consolidation.
(a)
Final Rules Required-
(1)
AMENDMENT TO SECURITIES EXCHANGE ACT- Section 3(a)(4)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)) is amended by
adding at the end the following:
`(F)
RULEMAKING REQUIRED- The Commission shall, by rule, implement the exception=
s in
subparagraph (B).'.
(2)
TIMING- Not later than 180 days after the date of enactment of this Act, the
Securities and Exchange Commission (in this section referred to as the
`Commission') shall issue proposed rules to define the term `broker' in
accordance with section 3(a)(4) of the Securities Exchange Act of 1934, as
amended by this subsection.
(3)
RULEMAKING SUPERSEDES PREVIOUS RULEMAKING- A final rule issued in accordance
with this section shall supersede any other proposed or final rule issued by
the Commission with regard to the exceptions to the definition of a broker
under section 3(a)(4)(B) of the Securities Exchange Act of 1934, on or after
the date of enactment of section 201 of the Gramm-Leach-Bliley
Act. No such other rule, whether or not issued in
final form, shall have any force or effect on or after that date of enactme=
nt.
(b)
Consultation- Prior to issuing the final rule required by this section, the
Commission shall consult with and seek the concurrence of the Federal banki=
ng
agencies concerning the content of such rulemaking in implementing section
3(a)(4)(B) of the Securities Exchange Act of 1934, as amended by this secti=
on
and section 201 of the Gramm-Leach-Bliley Act. =
(c)
Agency Objections to Commission Rule-
(1)
FILING OF PETITION FOR REVIEW-
(A)
IN GENERAL- Any Federal banking agency may obtain review of any final rule
issued under this section in the United States Court of Appeals for the
District of Columbia Circuit by filing in such court, not later than 60 days
after the date of publication of the final rule, a written petition request=
ing
that the rule be set aside.
(B)
EXPEDITED PROCESS- Any proceeding to challenge such a rule commenced under
subparagraph (A) shall be expedited by the Court of Appeals.
(2)
TRANSMITTAL OF PETITION AND RECORD-
(A)
SUBMISSION TO CLERK- A copy of a petition described in paragraph (1) shall =
be
transmitted as soon as possible by the Clerk of the Court to an officer or
employee of the Commission designated for that purpose.
(B)
FILING OF PETITION- Upon receipt of a petition under subparagraph (A), the
Commission shall file with the court the rule under review and any documents
referred to therein, and any other relevant materials prescribed by the cou=
rt.
(3)
EXCLUSIVE JURISDICTION- On the date of the filing of a petition under parag=
raph
(1), the court has jurisdiction, which becomes exclusive on the filing of t=
he
materials set forth in paragraph (2), to affirm and enforce or to set aside=
the
rule at issue.
(4)
STANDARD OF REVIEW- The court shall determine to affirm and enforce or set
aside a rule of the Commission under this subsection, based on the
determination of the court as to whether the rule is consistent with the
purposes and language of section 3(a)(4)(B) of the Securities Exchange Act =
of
1934, as amended by section 201 of the Gramm-Le=
ach-Bliley
Act, and appropriate in light of the history, purpose, and extent of the ru=
le
under the Federal securities laws and the Federal banking laws, giving
deference neither to the views of the Commission nor of the Federal banking
agencies.
(5)
JUDICIAL STAY- The filing of a petition by a Federal banking agency under
paragraph (1) shall operate as a judicial stay, until the date on which the
determination of the court is final (including any appeal of such
determination).
(d)
Definition- For purposes of this section, the term `Federal banking agencie=
s'
means the Board of Governors of the Federal Reserve System, the Office of t=
he
Comptroller of the Currency, the Office of Thrift Supervision, and the Fede=
ral
Deposit Insurance Corporation.
(a) In General- Section 19(b) of the Federal Reserve Ac=
t (12
U.S.C. 461(b)) is amended by adding at the end the following:
`(12)
EARNINGS ON BALANCES-
`(A)
IN GENERAL- Balances maintained at a Federal Reserve bank by or on behalf o=
f a
depository institution may receive earnings to be paid by the Federal Reser=
ve
bank at least once each calendar quarter, at a rate or rates not to exceed =
the
general level of short-term interest rates.
`(B)
REGULATIONS RELATING TO PAYMENTS AND DISTRIBUTIONS- The Board may prescribe
regulations concerning--
`(i)
the payment of earnings in accordance with this paragraph;
`(ii)
the distribution of such earnings to the depository institutions which main=
tain
balances at such banks, or on whose behalf such balances are maintained; an=
d
`(iii)
the responsibilities of depository institutions, Federal Home Loan Banks, a=
nd
the National Credit Union Administration Central Liquidity Facility with
respect to the crediting and distribution of earnings attributable to balan=
ces
maintained, in accordance with subsection (c)(1)(A), in a Federal Reserve b=
ank
by any such entity on behalf of depository institutions.
`(C)
DEPOSITORY INSTITUTIONS DEFINED- For purposes of this paragraph, the term
`depository institution', in addition to the institutions described in para=
graph
(1)(A), includes any trust company, corporation
organized under section 25A or having an agreement with the Board under sec=
tion
25, or any branch or agency of a foreign bank (as defined in section 1(b) of
the International Banking Act of 1978).'.
(b)
Conforming Amendment- Section 19 of the Federal Reserve Act (12 U.S.C. 461)=
is
amended--
(1)
in subsection (b)(4)--
(A)
by striking subparagraph (C); and
(B) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively; and <= o:p>
(2)
in subsection (c)(1)(A), by striking `subsection
(b)(4)(C)' and inserting `subsection (b)'.
Section
19(b)(2)(A) of the Federal Reserve Act (12 U.S.C=
. 461(b)(2)(A))
is amended--
(1)
in clause (i), by striking `the ratio of 3 per
centum' and inserting `a ratio of not greater than 3 percent (and which may=
be
zero)'; and
(2)
in clause (ii), by striking `and not less than 8=
per
centum,' and inserting `(and which may be zero),'.
Section
5144 of the Revised Statutes of the
(1)
by striking `or to cumulate' and inserting `or, =
if so
provided by the articles of association of the national bank, to cumulate';=
and
(2)
by striking the comma after `his shares shall eq=
ual'.
(a) In General- Section 5199 of the Revised Statutes of=
the
`(a)
In General- Subject to subsection (b), the directors of any national bank m=
ay
declare a dividend of so much of the undivided profits of the bank as the d=
irectors
judge to be expedient.
`(b)
Approval Required Under Certain Circumstances- A national bank may not decl=
are
and pay dividends in any year in excess of an amount equal to the sum of the
total of the net income of the bank for that year and the retained net inco=
me
of the bank for the preceding 2 years, minus the sum of any transfers requi=
red
by the Comptroller of the Currency and any transfers required to be made to=
a
fund for the retirement of any preferred stock, unless the Comptroller of t=
he
Currency approves the declaration and payment of dividends in excess of such
amount.'.
(b)
Clerical Amendment- The table of sections for chapter three of title LXII of
the Revised Statutes of the
`5199. National bank dividends.'.
Section
8(e)(4) of the Federal Deposit Insurance Act (12
U.S.C. 1818(e)(4)) is amended by striking the 5th sentence.
Section
5143 of the Revised Statutes of the
`(a)
In General- Subject to the approval of the Comptroller of the Currency, a
national banking association may, by a vote of shareholders owning, in the
aggregate, two-thirds of its capital stock, reduce its capital.
`(b)
Shareholder Distributions Authorized- As part of its capital reduction plan
approved in accordance with subsection (a), and with the affirmative vote of
shareholders owning at least two thirds of the shares of each class of its
stock outstanding (each voting as a class), a national banking association =
may
distribute cash or other assets to its shareholders.'.
(a)
Securities Exchange Act of 1934-
(1)
DEFINITION OF BANK- Section 3(a)(6) of the Secur=
ities
Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended--
(A)
in subparagraph (A), by inserting `or a Federal savings association, as def=
ined
in section 2(5) of the Home Owners' Loan Act' after `a banking institution
organized under the laws of the United States'; and
(B)
in subparagraph (C)--
(i) by inserting `or savings association, as defined in
section 2(4) of the Home Owners' Loan Act' after `banking institution'; and=
(ii)
by inserting `or savings associations' after `ha=
ving
supervision over banks'.
(2)
INCLUSION OF OTS UNDER THE DEFINITION OF APPROPRIATE REGULATORY AGENCY FOR
CERTAIN PURPOSES- Section 3(a)(34) of the Securi=
ties
Exchange Act of 1934 (15 U.S.C. 78c(a)(34)) is amended--
(A)
in subparagraph (A)--
(i) in clause (ii), by stri=
king `(i) or (iii)' and inserting `(i),
(iii), or (iv)';
(ii) in clause (iii), by striking `and' at the end; <= o:p>
(iii)
by redesignating cla=
use (iv)
as clause (v); and
(iv) by inserting after clause (iii) the following: <= o:p>
`(iv)
the Director of the Office of Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))), the deposits of which are insured by the Federal Depo=
sit
Insurance Corporation, a subsidiary or a department or division of any such
savings association, or a savings and loan holding company; and';
(B)
in subparagraph (B)--
(i) in clause (ii), by stri=
king `(i) or (iii)' and inserting `(i),
(iii), or (iv)';
(ii) in clause (iii), by striking `and' at the end; <= o:p>
(iii)
by redesignating cla=
use (iv)
as clause (v); and
(iv) by inserting after clause (iii) the following: <= o:p>
`(iv)
the Director of the Office of Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))), the deposits of which are insured by the Federal Depo=
sit
Insurance Corporation, or a subsidiary of any such savings association, or =
a savings
and loan holding company; and';
(C)
in subparagraph (C)--
(i) in clause (ii), by stri=
king `(i) or (iii)' and inserting `(i),
(iii), or (iv)';
(ii) in clause (iii), by striking `and' at the end; <= o:p>
(iii)
by redesignating cla=
use (iv)
as clause (v); and
(iv) by inserting after clause (iii) the following: <= o:p>
`(iv)
the Director of the Office of Thrift Supervision, in the case of a savings
association (as defined in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))), the deposits of which are insured by the Federal Depo=
sit
Insurance Corporation, a savings and loan holding company, or a subsidiary =
of a
savings and loan holding company when the appropriate regulatory agency for
such clearing agency is not the Commission; and';
(D)
in subparagraph (D)--
(i) in clause (ii), by stri=
king
`and' at the end;
(ii)
by redesignating cla=
use
(iii) as clause (iv); and
(iii)
by inserting after clause (ii) the following:
`(iii)
the Director of the Office of Thrift Supervision, in the case of a savings =
association
(as defined in section 3(b) of the Federal Deposit Insurance Act (12 U.S.C.
1813(b))) the deposits of which are insured by the Federal Deposit Insurance
Corporation; and';
(E)
in subparagraph (F)--
(i) by redesignating
clauses (ii), (iii), and (iv) as clauses (iii), (iv), and (v), respectively;
and
(ii)
by inserting after clause (=
i)
the following:
`(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 Depo=
sit
Insurance Corporation; and';
(F)
by moving subparagraph (H) and inserting such
subparagraph immediately after subparagraph (G); and
(G)
by adding at the end of the undesignated matter at the end the following: `=
As
used in this paragraph, the term `savings and loan holding company' has the
same meaning as in section 10(a) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)).'.
(3)
CONFORMING EXEMPTION TO REPORTING REQUIREMENT- Section 23(b)(1)
of the Securities Exchange Act of 1934 (15 U.S.C. 78w(b)(1)) is amended by
inserting `other than the Office of Thrift Supervision,' before `shall each=
'.
(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 def=
ined
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'; an=
d
(ii)
by inserting `or savings associations' after `ha=
ving
supervision over banks'.
(2)
CONFORMING AMENDMENTS- Section 210A of the Investment Advisers Act of 1940 =
(15
U.S.C. 80b-10a) is amended in each of subsections (a)(1)(A)(i),
(a)(1)(B), (a)(2), and (b), by striking `bank holding company' each place t=
hat
term appears and inserting `bank holding company or savings and loan holding
company'.
(c)
Conforming Amendment to the Investment Company Act of 1940- Section 10(c) of
the Investment Company Act of 1940 (15 U.S.C. 80a-10(c)) 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),'.
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 foll=
owing:
`(4)
[Repealed].'; and
(2)
in paragraph (9)(A), by striking `intangible ass=
ets,
plus' and all that follows through the period at the end and inserting
`intangible assets.'.
Section
5 of the Home Owners' Loan Act (12 U.S.C. 1464) is amended by adding at the=
end
the following:
`(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 home office.'.
Section
5(u)(2)(A) of the Home Owners' Loan Act (12 U.S.=
C.
1464(u)(2)(A)) is amended--
(1)
in clause (i)--
(A)
by striking `for any' and inserting `For any'; a=
nd
(B) by striking `; or' and inserting a period; and <= o:p>
(2)
in clause (ii)--
(A)
by striking `to develop domestic' and inserting =
`To
develop domestic';
(B)
by striking subclause (I);
and
(C)
by redesignating
(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 unio=
n' 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
(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 section heading for section 124 of the Federal Cred=
it
Union Act (12 U.S.C. 1770) is amended by inserting `or federal land' after
`buildings'.
Section
107(5) of the Federal Credit Union Act (12 U.S.C. 1757(5)) is amended in the
matter preceding subparagraph (A), by striking `to make loans, the maturiti=
es
of which shall not exceed twelve years' and inserting `to make loans, the
maturities of which shall not exceed 15 years,'.
Section
107(12) of the Federal Credit Union Act (12 U.S.C. 1757(12)) 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 instrumen=
ts
(including international and domestic electronic fund transfers); and
`(B)
to cash checks and money orders and receive international and domestic
electronic fund transfers for persons in the field of membership for a fee;=
'.
Section
216(o)(2)(A) of the Federal Credit Union Act (12
U.S.C. 1790d(o)(2)(A)) is amended--
(1)
by inserting `the' before `retained earnings bal=
ance';
and
(2)
by inserting `, together with any amounts that were previously retained
earnings of any other credit union with which the credit union has combined'
before the semicolon at the end.
(a)
Reporting Requirements Regarding Loans to Executive Officers of Member Bank=
s-
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 par=
agraphs
(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.
(a)
In General- Sections 2 and 3 of the Bank Service Company Act (12 U.S.C. 186=
2, 1863)
are each amended by striking `insured bank' each place that term appears and
inserting `insured depository institution'.
(b)
Technical and Conforming Amendments-
(1)
BANK SERVICE COMPANY ACT DEFINITIONS- Section 1(b) of the Bank Service Comp=
any
Act (12 U.S.C. 1861(b)) is amended--
(A)
in paragraph (4)--
(i) by inserting `, except =
when
such term appears in connection with the term `insured depository
institution',' after `means'; and
(ii)
by striking `Federal Home Loan Bank Board' and
inserting `Director of the Office of Thrift Supervision';
(B)
by striking paragraph (5) and inserting the foll=
owing:
`(5)
INSURED DEPOSITORY INSTITUTION- The term `insured depository institution' h=
as
the same meaning as in section 3(c) of the Federal Deposit Insurance Act;';=
(C) by striking `and' at the end of paragraph (7); <= o:p>
(D)
by striking the period at the end of paragraph (=
8) and
inserting `; and';
(E)
by adding at the end the following:
`(9)
the terms `State depository institution', `Federal depository institution',
`State savings association' and `Federal savings association' have the same
meanings as in section 3 of the Federal Deposit Insurance Act.';
(F)
in paragraph (2), in subparagraphs (A)(ii) and (B)(ii), by striking `insured
banks' each place that term appears and inserting `insured depository
institutions'; and
(G)
in paragraph (8)--
(i) by striking `insured ba=
nk' and
inserting `insured depository institution';
(ii)
by striking `insured banks' each place that term
appears and inserting `insured depository institutions'; and
(iii)
by striking `the bank's' and inserting `the depo=
sitory
institution's'.
(2)
AMOUNT OF INVESTMENT- 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(c)(4)(B) of the Home Owners' Loan Act' after `relati=
ng
to banks'.
(3)
LOCATION OF SERVICES- Section 4 of the Bank Service Company Act (12 U.S.C.
1864) is amended--
(A)
in subsection (b), by inserting `as permissible =
under
subsection (c), (d), or (e) or' after `Except';
(B)
in subsection (c), by inserting `or State savings
association' after `State bank' each place that term appears;
(C)
in subsection (d), by inserting `or Federal savi=
ngs
association' after `national bank' each place that term appears;
(D)
by striking subsection (e) and inserting the
following:
`(e)
Performance Where State Bank and National Bank Are Shareholders or Members-=
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.'; and
(E)
in subsection (f), by inserting `or savings
associations' after `location of banks'.
(4)
PRIOR APPROVAL OF INVESTMENTS- Section 5 of the Bank Service Company Act (12
U.S.C. 1865) is amended--
(A)
in subsection (a)--
(i) by striking `insured ba=
nk' and
inserting `insured depository institution'; and
(ii)
by striking `bank's'; and
(iii)
by inserting before the period `for the insured
depository institution';
(B)
in subsection (b)--
(i) by striking `insured ba=
nk' and
inserting `insured depository institution';
(ii)
by inserting `authorized only' after `performs a=
ny
service'; and
(iii)
by inserting `authorized only' after `perform any
activity'; and
(C)
in subsection (c)--
(i) by striking `the bank o=
r banks'
and inserting `any insured depository institution'; and
(ii)
by striking `capability of the bank' and inserti=
ng
`capability of the insured depository institution'.
(5)
REGULATION AND EXAMINATION- 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' ea=
ch place
that term appears and inserting `a depository institution'; and
(ii)
by striking `the bank' each place that term appe=
ars
and inserting `the depository institution'.
Section
19(c)(1)(B) of the Federal Reserve Act (12 U.S.C=
. 461(c)(1)(B))
is amended by striking `which is not a member bank'.
Section
7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)) is amended by
adding at the end the following:
`(11)
STREAMLINING REPORTS OF CONDITION-
`(A)
REVIEW OF INFORMATION AND SCHEDULES- Before the end of the 1-year period
beginning on the date of enactment of the Financial Services Regulatory Rel=
ief
Act of 2006 and before the end of each 5-year period thereafter, each Feder=
al
banking agency shall, in conjunction with the other relevant Federal banking
agencies, review the information and schedules that are required to be file=
d by
an insured depository institution in a report of condition required under
paragraph (3).
`(B)
REDUCTION OR ELIMINATION OF INFORMATION FOUND TO BE UNNECESSARY- After
completing the review required by subparagraph (A), a Federal banking agenc=
y,
in conjunction with the other relevant Federal banking agencies, shall redu=
ce
or eliminate any requirement to file information or schedules under paragra=
ph
(3) (other than information or schedules that are otherwise required by law=
) if
the agency determines that the continued collection of such information or
schedules is no longer necessary or appropriate.'.
Section
10(d)(4)(A) of the Federal Deposit Insurance Act=
(12
U.S.C. 1820(d)(4)(A)) is amended by striking `$250,000,000' and inserting
`$500,000,000'.
(a) In General- Section 18(c)(4) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)(4)) is amended to read as follows:
`(4)
REPORTS ON COMPETITIVE FACTORS-
`(A)
REQUEST FOR REPORT- In the interests of uniform standards and subject to
subparagraph (B), before acting on any application for approval of a merger
transaction, the responsible agency shall--
`(i)
request a report on the competitive factors involved from the Attorney Gene=
ral
of the
`(ii)
provide a copy of the request to the Corporation (when the Corporation is n=
ot
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 later than 30 calendar days after the date on which the Attorney General
received the request; or
`(ii)
not later than 10 calendar days after such date, if the requesting agency
advises the Attorney General that an emergency exists requiring expeditious
action.
`(C)
EXCEPTIONS- A responsible agency may not be required to request a report un=
der
subparagraph (A) if--
`(i) the responsible agency finds that it must act
immediately in order to prevent the probable failure of 1 of the insured
depository institutions involved in the merger transaction; or
`(ii)
the merger transaction involves solely an insured depository institution an=
d 1
or more of the affiliates of such depository institution.'.
(b)
Technical and Conforming Amendments- Section 18(c)(6)
of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended--
(1)
in the second sentence, by striking `banks or savings associations involved=
and
reports on the competitive factors have' and inserting `insured depository
institutions involved, or if the proposed merger transaction is solely betw=
een
an insured depository institution and 1 or more of its affiliates, and the
report on the competitive factors has'; and
(2) by striking the penultimate sentence and inserting the following: `If the agency has advised the Attorney General under paragraph (4)(B)(ii) of the existence of an emergency requiring expeditious action and has reque= sted 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.'. <= o:p>
(a)
Insured Depository Institutions- Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by adding at the end the following:
`(x)
Privileges Not Affected by Disclosure to Banking Agency or Supervisor-
`(1)
IN GENERAL- The submission by any person of any information to any Federal
banking agency, State bank supervisor, or foreign banking authority for any
purpose in the course of any supervisory or regulatory process of such agen=
cy,
supervisor, or authority shall not be construed as waiving, destroying, or
otherwise affecting any privilege such person may claim with respect to such
information under Federal or State law as to any person or entity other than
such agency, supervisor, or authority.
`(2)
RULE OF CONSTRUCTION- No provision of paragraph (1) may be construed as
implying or establishing that--
`(A)
any person waives any privilege applicable to information that is submitted=
or
transferred under any circumstance to which paragraph (1) does not apply; o=
r
`(B)
any person would waive any privilege applicable to any information by
submitting the information to any Federal banking agency, State bank
supervisor, or foreign banking authority, but for this subsection.'
(b)
Insured Credit Unions- Section 205 of the Federal Credit Union Act (12
U.S.C.1785) is amended by adding at the end the following:
`(j)
Privileges Not Affected by Disclosure to Banking Agency or Supervisor-
`(1)
IN GENERAL- The submission by any person of any information to the
Administration, any State credit union supervisor, or foreign banking autho=
rity
for any purpose in the course of any supervisory or regulatory process of s=
uch
Board, supervisor, or authority shall not be construed as waiving, destroyi=
ng,
or otherwise affecting any privilege such person may claim with respect to =
such
information under Federal or State law as to any person or entity other than
such Board, supervisor, or authority.
`(2)
RULE OF CONSTRUCTION- No provision of paragraph (1) may be construed as
implying or establishing that--
`(A)
any person waives any privilege applicable to information that is submitted=
or
transferred under any circumstance to which paragraph (1) does not apply; o=
r
`(B)
any person would waive any privilege applicable to any information by
submitting the information to the Administration, any State credit union
supervisor, or foreign banking authority, but for this subsection.'.
(a)
Home Owners' Loan Act- Section 5(i)(5)
of the Home Owners' Loan Act (12 U.S.C. 1464(i)=
(5))
is amended to read as follows:
`(5)
CONVERSION TO NATIONAL OR STATE BANK-
`(A)
IN GENERAL- Any Federal savings association chartered and in operation befo=
re
the date of enactment of the Gramm-Leach-Bliley=
Act,
with branches in operation before such date of enactment in 1 or more State=
s,
may convert, at its option, with the approval of the Comptroller of the
Currency for each national bank, and with the approval of the appropriate S=
tate
bank supervisor and the appropriate Federal banking agency for each State b=
ank,
into 1 or more national or State banks, each of which may encompass 1 or mo=
re
of the branches of the Federal savings association in operation before such
date of enactment in 1 or more States subject to subparagraph (B).
`(B)
CONDITIONS OF CONVERSION- The authority in subparagraph (A) shall apply onl=
y if
each resulting national or State bank--
`(i)
will meet all financial, management, and capital requirements applicable to=
the
resulting national or State bank; and
`(ii)
if more than 1 national or State bank results from a conversion under this
subparagraph, has received approval from the Federal Deposit Insurance
Corporation under section 5(a) of the Federal Deposit Insurance Act.
`(C)
NO MERGER APPLICATION UNDER FDIA REQUIRED- No application under section 18(=
c)
of the Federal Deposit Insurance Act shall be required for a conversion und=
er
this paragraph.
`(D)
DEFINITIONS- For purposes of this paragraph, the terms `State bank' and `St=
ate
bank supervisor' have the same meanings as in section 3 of the Federal Depo=
sit
Insurance Act.'.
(b)
Federal Deposit Insurance Act- Section 4(c) of the Federal Deposit Insurance
Act (12 U.S.C. 1814(c)) is amended--
(1)
by inserting `of this Act and section 5(i)(5) o=
f the
Home Owners' Loan Act' after `Subject to section 5(d)'; and
(2)
in paragraph (2), after `insured State,' by inse=
rting
`or Federal'.
(a) In General- Section 503 of the Gramm-Leach-Bliley
Act (15 U.S.C. 6803) is amended by adding at the end the following:
`(d)
Exemption for Certified Public Accountants-
`(1)
IN GENERAL- The disclosure requirements of subsection (a) do not apply to a=
ny
person, to the extent that the person is--
`(A)
a certified public accountant;
`(B)
certified or licensed for such purpose by a State; and
`(C)
subject to any provision of law, rule, or regulation issued by a legislativ=
e or
regulatory body of the State, including rules of professional conduct or
ethics, that prohibits disclosure of nonpublic personal information without=
the
knowing and expressed consent of the consumer.
`(2)
LIMITATION- Nothing in this subsection shall be construed to exempt or
otherwise exclude any financial institution that is affiliated or becomes
affiliated with a certified public accountant described in paragraph (1) fr=
om
any provision of this section.
`(3)
DEFINITIONS- For purposes of this subsection, the term `State' means any St=
ate
or territory of the
(b)
Clerical Amendments- Section 503 of the Gramm-L=
each-Bliley
Act (15 U.S.C. 6803) is amended--
(1)
by redesignating sub=
section
(b) as subsection (c); and
(2)
in subsection (a), by striking `Such disclosures=
' and
inserting the following:
`(b)
Regulations- Disclosures required by subsection (a)'.
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 `$50,000,000'. =
Section
4(n)(5)(B) of the Bank Holding Company Act of 19=
56 (12
U.S.C. 1843(n)(5)(B)) is amended by striking `subsection (k)(4)(I)' and
inserting `subparagraph (H) or (I) of subsection (k)(4)'.
(a)
National Banks- Section 2 of the National Bank Receivership Act (12 U.S.C. =
191)
is amended--
(1)
by amending the section heading to read as follo=
ws:
`(a)
In General- The Comptroller of the Currency'; and
(2)
by adding at the end the following:
`(b)
Judicial Review- If the Comptroller of the Currency appoints a receiver und=
er
subsection (a), the national bank may, within 30 days thereafter, bring an
action in the United States district court for the judicial district in whi=
ch
the home office of such bank is located, or in the United States District C=
ourt
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, dism=
iss
such action or direct the Comptroller of the Currency to remove the receive=
r.'.
(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, not later than 30 days thereafter, bring an act=
ion
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 s=
uch
action or direct the Corporation to be removed as the conservator or
receiver.'.
(c)
Effective Date- The amendments made by subsections (a) and (b) shall apply =
with
respect to conservators or receivers appointed on or after the date of
enactment of this Act.
(a)
Clarification Relating to the Enforceability of
Agreements and Conditions- The Federal Deposit Insurance Act (12 U.S.C. 181=
1 et
seq.) is amended by adding at the end the following:
`(a)
In General- Notwithstanding clause (i) or (ii) =
of
section 8(b)(6)(A) or section 38(e)(2)(E)(i), t=
he
appropriate Federal banking agency for a depository institution may enforce,
under section 8, the terms of--
`(1)
any condition imposed in writing by the agency on the depository institutio=
n or
an institution-affiliated party in connection with any action on any
application, notice, or other request concerning the depository institution=
; or
`(2)
any written agreement entered into between the agency and the depository
institution or an institution-affiliated party.
`(b)
Receiverships and Conservatorships- After the
appointment of the Corporation as the receiver or conservator for a deposit=
ory
institution, the Corporation may enforce any condition or agreement describ=
ed
in paragraph (1) or (2) of subsection (a) imposed on or entered into with s=
uch
institution or institution-affiliated party through an action brought in an
appropriate United States district court.'.
(b)
Protection of Capital of Insured Depository Institutions- Section 18(u)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1828(u)(1)) is amended--
(1)
by striking subparagraph (B);
(2)
by redesignating
subparagraph (C) as subparagraph (B); and
(3)
in subparagraph (A), by adding `and' at the end.=
(c)
Conforming Amendments- Section 8(b) of the Federal Deposit Insurance Act (12
U.S.C. 1818(b)) is amended--
(1)
in paragraph (3), by striking `This subsection a=
nd
subsections (c) through (s) and subsection (u) of this section' and inserti=
ng
`This subsection, subsections (c) through (s) and subsection (u) of this
section, and section 49 of this Act'; and
(2)
in paragraph (4), by striking `This subsection a=
nd
subsections (c) through (s) and subsection (u) of this section' and inserti=
ng
`This subsection, subsections (c) through (s) and subsection (u) of this
section, and section 49 of this Act'.
Section
5(e)(9)(A) 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'.
Section
18(k) 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)
in paragraph (2), by striking subparagraph (B), =
and
inserting the following:
`(B)
Whether there is a reasonable basis to believe that the institution-affilia=
ted
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 troubled condition of the depository institution (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 subpara=
graph
(A), by striking `depository institution holding company' and inserting
`covered company';
(5)
in paragraph (3)(A), by striking `holding compan=
y' and
inserting `covered company';
(6)
in paragraph (4)(A)--
(A)
by striking `depository institution holding comp=
any'
each place that term appears and inserting `covered company'; and
(B)
by striking `holding company' each place that term appears (other than in
connection with the term referred to in subparagraph (A)) and inserting `co=
vered
company';
(7)
in paragraph (5)(A), by striking `depository
institution holding company' and inserting `covered company';
(8)
in paragraph (5), by adding at the end the follo=
wing:
`(D)
COVERED COMPANY- The term `covered company' means any depository institution
holding company (including any company required to file a report under sect=
ion
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 comp=
any'
and inserting `covered company,'; and
(B)
by striking `or holding company' and inserting `=
or
covered company'.
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 inser=
ting
`is needed--
`(i)
to investigate';
(B)
by striking `United States Code.' and inserting
`United States Code; or'; and
(C)
by adding at the end the following:
`(ii)
to analyze the safety and soundness of any plans or proposals described in
paragraph (6)(E) or the future prospects of the institution.'; and
(2)
in paragraph (7)(C), by striking `the financial
condition of any acquiring person' and inserting `either the financial
condition of any acquiring person or the future prospects of the institutio=
n'.
Section
2(g)(2) of the Bank Holding Company Act of 1956 =
(12
U.S.C. 1841(g)(2)) is amended by inserting before the period at the end `,
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'.
(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:
`(C)
DATA SHARING WITH OTHER AGENCIES AND PERSONS- In addition to reports of
examination, reports of condition, and other reports required to be regular=
ly
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 superv=
isor
(with respect to a State depository institution) under subparagraph (A) or =
(B),
a Federal banking agency may, in the discretion of the agency, furnish any
report of examination or other confidential supervisory information concern=
ing
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 regulato=
ry
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 that the Federal banking agency determines to be appropria=
te.'.
(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=
:
`(8)
DATA SHARING WITH OTHER AGENCIES AND PERSONS- In addition to reports of exa=
mination,
reports of condition, and other reports required to be regularly provided to
the Board (with respect to all insured credit unions, including a credit un=
ion
for which the Corporation has been appointed conservator or liquidating age=
nt)
or an appropriate State commission, board, or authority having supervision =
of a
State-chartered credit union, the Board may, in the discretion of the Board,
furnish any report of examination or other confidential supervisory informa=
tion
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 regulato=
ry
authority over the credit union or other entity;
`(B)
any officer, director, or receiver of such credit union or entity; and
`(C)
any other person that the Board determines to be
appropriate.'.
(a)
Insured Depository Institutions-
(1)
IN GENERAL- Section 8(g)(1) of the Federal Depos=
it
Insurance Act (12 U.S.C. 1818(g)(1)) is amended--
(A)
in subparagraph (A)--
(i) by striking `is charged=
in any
information, indictment, or complaint, with the commission of or participat=
ion
in' and inserting `is the subject of any information, indictment, or compla=
int,
involving the commission of or participation in';
(ii)
by striking `may pose a threat to the interests of the depository instituti=
on's
depositors or may threaten to impair public confidence in the depository
institution,' and insert `posed, poses, or may pose a threat to the interes=
ts
of the depositors of, or threatened, threatens, or may threaten to impair
public confidence in, any relevant depository institution (as defined in
subparagraph (E)),'; and
(iii)
by striking `affairs of the depository instituti=
on'
and inserting `affairs of any depository institution';
(B)
in subparagraph (B)(i), by
striking `the depository institution' and inserting `any depository institu=
tion
that the subject of the notice is affiliated with at the time the notice is
issued';
(C)
in subparagraph (C)(i)--
(i) by striking `may pose a threat to the interests of=
the
depository institution's depositors or may threaten to impair public confid=
ence
in the depository institution,' and insert `posed, poses, or may pose a thr=
eat
to the interests of the depositors of, or threatened, threatens, or may
threaten to impair public confidence in, any relevant depository institution
(as defined in subparagraph (E)),'; and
(ii)
by striking `affairs of the depository instituti=
on'
and inserting `affairs of any depository institution';
(D)
in subparagraph (C)(ii), by striking `affairs of=
the
depository institution' and inserting `affairs of any depository institutio=
n';
(E)
in subparagraph (D)(i), by
striking `the depository institution' and inserting `any depository institu=
tion
that the subject of the order is affiliated with at the time the order is
issued'; and
(F)
by adding at the end the following:
`(E)
RELEVANT DEPOSITORY INSTITUTION- For purposes of this subsection, the term
`relevant depository institution' means any depository institution of which=
the
party is or was an institution-affiliated party at the time at which--
`(i)
the information, indictment, or complaint described in subparagraph (A) was
issued; or
`(ii)
the notice is issued under subparagraph (A) or the order is issued under
subparagraph (C)(i).'.
(2)
CLERICAL AMENDMENT- The subsection heading for section 8(g) of the Federal
Deposit Insurance Act (12 U.S.C. 1818(g)) is amended to read as follows:
`(g)
Suspension, Removal, and Prohibition From Participation Orders in the Case =
of
Certain Criminal Offenses- '.
(b)
Insured Credit Unions-
(1)
IN GENERAL- Section 206(i)(=
1)
of the Federal Credit Union Act (12 U.S.C. 1786(i)(1))
is amended--
(A)
in subparagraph (A), by striking `the credit union' each place that term
appears and inserting `any credit union';
(B)
in subparagraph (B)(i), by
inserting `of which the subject of the order is, or most recently was, an
institution-affiliated party' before the period at the end;
(C)
in subparagraph (C)--
(i) by striking `the credit=
union'
each place such term appears and inserting `any credit union'; and
(ii)
by striking `the credit union's' and inserting `=
any
credit union's';
(D)
in subparagraph (D)(i), by striking `upon such =
credit
union' and inserting `upon the credit union of which the subject of the ord=
er
is, or most recently was, an institution-affiliated party'; and
(E)
by adding at the end the following:
`(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-affiliat=
ed
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-affilia=
ted
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 Feder=
al
Credit Union Act (12 U.S.C. 1786(i)) is amended=
by
striking `(i)' at the
beginning and inserting the following:
`(i)
Suspension, Removal, and Prohibition From Participation Orders in the Case =
of
Certain Criminal Offenses- '.
Section
15 of the International Banking Act of 1978 (12 U.S.C. 3109) is amended by
adding at the end the following:
`(c)
Confidential Information Received From Foreign Supervisors-
`(1)
IN GENERAL- Except as provided in paragraph (3), a Federal banking agency m=
ay
not be compelled to disclose information received from aforeign
regulatory or supervisory authority if--
`(A)
the Federal banking agency determines that the foreign regulatory or
supervisory authority has, in good faith, determined and represented in wri=
ting
to such Federal banking agency that public disclosure of the information wo=
uld
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 Fede=
ral
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 cou=
rt
of the
`(4)
FEDERAL BANKING AGENCY DEFINED- For purposes of this subsection, the term
`Federal banking agency' means the Board, the Comptroller of the Currency, =
the
Federal Deposit Insurance Corporation, and the Director of the Office of Th=
rift
Supervision.'.
(a)
Extension of Automatic Prohibition- Section 19 of the Federal Deposit Insur=
ance
Act (12 U.S.C. 1829) is amended by adding at the end the following:
`(d)
Bank Holding Companies- Subsections (a) and (b) shall apply to any company
(other than a foreign bank) that is a bank holding company and any organiza=
tion
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 hold=
ing
company or organization were an insured depository institution, except that
such subsections shall be applied for purposes of this subsection by
substituting `Board of Governors of the Federal Reserve System' for
`Corporation' each place that 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 l=
oan
holding company or subsidiary were an insured depository institution, except
that subsections shall be applied for purposes of this subsection by
substituting `Director of the Office of Thrift Supervision' for `Corporatio=
n'
each place that term appears in such subsections.'.
(b)
Enhanced Discretion To Remove Convicted Individuals- Section 8(e)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1818(e)(2)(A)) is amended--
(1)
by striking `or' at the end of clause (ii);
(2)
by striking the comma at the end of clause (iii)=
and
inserting `; or'; and
(3)
by adding at the end the following:
`(iv)
an institution-affiliated party of a subsidiary (other than a bank) of a ba=
nk
holding company has been convicted of any criminal offense involving dishon=
esty
or a breach of trust, or a criminal violation of section 1956, 1957, or 196=
0 of
title 18 United States Code, or has agreed to enter into a pretrial diversi=
on
or similar program in connection with a prosecution for such an offense,'. =
Section
10(h) of the Federal Deposit Insurance Act (12 U.S.C. 1820(h)) is amended to
read as follows:
`(h)
Coordination of Examination Authority-
`(1)
STATE BANK SUPERVISORS OF HOME AND
`(A)
`(B)
HOST STATE BRANCHES- The State bank supervisor of the home State of an insu=
red
State bank and any State bank supervisor of an appropriate host State shall
exercise its respective authority to supervise and examine the branches of =
the
bank in a host State in accordance with the terms of any applicable coopera=
tive
agreement between the home State bank supervisor and the State bank supervi=
sor
of the relevant host State.
`(C) SUPERVISORY FEES- Except as expressly provided in a cooperative agreement between the State bank supervisors of the home State and any host State of = an insured State bank, only the State bank supervisor of the home State of an insured State bank may levy or charge State supervisory fees on the bank. <= o:p>
`(2)
HOST STATE EXAMINATION-
`(A)
IN GENERAL- With respect to a branch operated in a host State by an
out-of-State insured State bank that resulted from an interstate merger
transaction approved under section 44, or that was established in such State
pursuant to section 5155(g) of the Revised Statutes of the United States, t=
he
third undesignated paragraph of section 9 of the Federal Reserve Act or sec=
tion
18(d)(4) of this Act, the appropriate State bank supervisor of such host St=
ate
may--
`(i)
with written notice to the State bank supervisor of the bank's home State a=
nd
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), including those that govern community reinvestment, fair
lending, and consumer protection; and
`(ii)
if expressly permitted under and subject to the terms of a cooperative
agreement with the State bank supervisor of the bank's home State or if such
out-of-State insured State bank has been determined to be in a troubled
condition by either the State bank supervisor of the bank's home State or t=
he
bank's appropriate Federal banking agency, participate in the examination of
the bank by the State bank supervisor of the bank's home State to ascertain
that the activities of the branch in such host State are not conducted in an
unsafe or unsound manner.
`(B)
NOTICE OF DETERMINATION-
`(i) IN GENERAL- The State bank supervisor of the home =
State
of an insured State bank 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.
`(ii)
TIMING OF NOTICE- The State bank supervisor of the home State of an insured
State bank shall provide notice under clause (i=
) as
soon as is reasonably possible, but in all cases not later than 15 business
days after the date on which the State bank supervisor has made such final
determination or has received written notification of such final determinat=
ion.
`(3)
HOST STATE ENFORCEMENT- If the State bank supervisor of a host State determ=
ines
that a branch of an out-of-State insured State bank is violating any law of=
the
host State that is applicable to such branch pursuant to section 24(j),
including a law that governs community reinvestment, fair lending, or consu=
mer
protection, the State bank supervisor of the host State or, to the extent a=
uthorized
by the law of the host State, a host State law enforcement officer may, with
written notice to the State bank supervisor of the bank's home State and
subject to the terms of any applicable cooperative agreement with the State
bank supervisor of the bank's home State, undertake such enforcement actions
and proceedings as would be permitted under the law of the host State as if=
the
branch were a bank chartered by that host State.
`(4)
COOPERATIVE AGREEMENT-
`(A)
IN GENERAL- The State bank supervisors from 2 or more States may enter into
cooperative agreements to facilitate State regulatory supervision of State
banks, including cooperative agreements relating to the coordination of
examinations and joint participation in examinations.
`(B)
DEFINITION- For purposes of this subsection, the term `cooperative agreemen=
t'
means a written agreement that is signed by the home State bank supervisor =
and
the 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.
`(C)
RULE OF CONSTRUCTION- Except for State bank supervisors, no provision of th=
is
subsection relating to such cooperative agreements shall be construed as
limiting in any way the authority of home State and host State law enforcem=
ent
officers, regulatory supervisors, or other officials that have not signed s=
uch
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 purs=
uant
to section 24(j).
`(5)
FEDERAL REGULATORY AUTHORITY- No provision of this subsection shall be
construed as limiting in any way the authority of any Federal banking agenc=
y.
`(6)
STATE TAXATION AUTHORITY NOT AFFECTED- No provision of this subsection shal=
l 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 a=
ny
bank, bank holding company, or foreign bank, or any affiliate of any bank, =
bank
holding company, or foreign bank, to the extent that such tax or tax method=
is
otherwise permissible by or under the Constitution of the United States or
other Federal law.
`(7)
DEFINITIONS- For purpose of this section, the following definitions shall
apply:
`(A)
`(B)
STATE SUPERVISORY FEES- The term `State supervisory fees' means assessments,
examination fees, branch fees, license fees, and all other fees that are le=
vied
or charged by a State bank supervisor directly upon an insured State bank or
upon branches of an insured State bank.
`(C)
TROUBLED CONDITION- Solely for purposes of paragraph (2=
)(B),
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 examinat=
ion,
of 4 or 5 under the Uniform Financial Institutions Ratings System;
`(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 ba=
nk's
home State to vacate, revoke, or terminate the charter of the bank, or to
liquidate the bank, or to appoint a receiver for the bank.
`(D)
FINAL DETERMINATION- For 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.'.
(a)
Establishment of Position of Deputy Director- Section 3(c)(5)
of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(5)) is amended to read as
follows:
`(5)
DEPUTY DIRECTOR-
`(A)
IN GENERAL- The Secretary of the Treasury shall appoint a Deputy Director, =
and
may appoint not more than 3 additional Deputy Directors of the Office.
`(B)
FIRST DEPUTY DIRECTOR- If the Secretary of the Treasury appoints more than 1
Deputy Director of the Office, the Secretary shall designate one such appoi=
ntee
as the First Deputy Director.
`(C)
DUTIES- Each Deputy Director appointed under this paragraph shall take an o=
ath
of office and perform such duties as the Director shall direct.
`(D)
COMPENSATION AND BENEFITS- The Director shall fix the compensation and bene=
fits
for each Deputy Director in accordance with this Act.'.
(b)
Service of Deputy Director as Acting Director- Section 3(c)(3)
of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(3)) is amended--
(1)
by striking `vacancy- A vacancy in the position =
of
Director' and inserting `vacancy-
`(A)
IN GENERAL- A vacancy in the position of Director'; and
(2)
by adding at the end the following:
`(B)
ACTING DIRECTOR-
`(i) IN GENERAL- In the event of a vacancy in the posit=
ion of
Director or during the absence or disability of the Director, the Deputy
Director shall serve as Acting Director.
`(ii)
SUCCESSION IN CASE OF 2 OR MORE DEPUTY DIRECTORS- If there are 2 or more De=
puty
Directors serving at the time a vacancy in the position of Director occurs =
or
the absence or disability of the Director commences, the First Deputy Direc=
tor
shall serve as Acting Director under clause (i)
followed by such other Deputy Directors under any order of succession the
Director may establish.
`(iii)
AUTHORITY OF ACTING DIRECTOR- Any Deputy Director, while serving as Acting
Director under this subparagraph, shall be vested with all authority, dutie=
s,
and privileges of the Director under this Act and any other provision of
Federal law.'.
(a) In General- Section 912 of the International Lending
Supervision Act of 1983 (12 U.S.C. 3911) is amended--
(1)
in the section heading, by inserting at the end =
the
following: `and the office of thrift supervision';
(2)
by striking `As one of the three' and inserting =
the
following:
`(a)
In General- As one of the 4'; and
(3)
by adding at the end the following:
`(b)
As one of the 4 Federal bank regulatory and supervisory agencies, the Offic=
e of
Thrift Supervision shall be given equal representation with the Board of
Governors of the Federal Reserve System, the Office of the Comptroller of t=
he
Currency, and the Federal Deposit Insurance Corporation on the Committee on
Banking Regulations and Supervisory Practices of the Group of Ten Countries=
and
Switzerland.'.
(b)
Conforming Amendments- Section 910(a) of the International Lending Supervis=
ion
Act of 1983 (12 U.S.C. 3909(a)) is amended--
(1)
in paragraph (2), by striking `insured bank' and
inserting `insured depository institution'; and
(2)
in paragraph (3), by striking `an `insured bank', as such term is used in
section 3(h)' and inserting `an `insured depository institution', as such t=
erm
is defined in section 3(c)(2)'.
(a)
Council Membership- Section 1004(a) of the Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3303(a)) is amended--
(1)
in paragraph (4), by striking `Thrift' and all that follows through the end=
of
the paragraph and inserting `Thrift Supervision,';
(2)
in paragraph (5) by striking the period at the e=
nd and
inserting `, and'; and
(3)
by adding at the end the following:
`(6)
the Chairman of the State Liaison Committee.'.
(b)
Chairperson of Liaison Committee- Section 1007 of the Federal Financial Ins=
titutions
Examination Council Act of 1978 (12 U.S.C. 3306) is amended by adding at the
end the following: `Members of the Liaison Committee shall elect a chairper=
son
from among the members serving on the committee.'.
(a)
Technical Amendment to the Federal Deposit Insurance Act- Section 8(i)(3) of the Federal Depos=
it
Insurance Act (12 U.S.C. 1818(i)(3)) is amended=
by
inserting `or order' after `notice' each place that term appears.
(b)
Technical Amendment to the Federal Credit Union Act- Section 206(k)(3) of the Federal Credit Union Act (12 U.S.C. 1786(k=
)(3))
is amended by inserting `or order' after `notice' each place that term appe=
ars.
(a) Actions on Applications, Notices, and Other Request=
s;
Clarification That Change in Control Conditions Are Enforceable- Section 8 =
of
the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended--
(1)
in subsection (b)(1), in the first sentence, by
striking `the granting of any application or other request by the depository
institution' and inserting `any action on any application, notice, or other
request by the depository institution or institution-affiliated party,';
(2)
in subsection (e)(1)(A)(i)(III),
by striking `the grant of any application or other request by such deposito=
ry
institution' and inserting `any action on any application, notice, or reque=
st
by such depository institution or institution-affiliated party'; and
(3)
in subsection (i)(2)=
(A)(iii),
by striking `the grant of any application or other request by such deposito=
ry
institution' and inserting `any action on any application, notice, or other
request by the depository institution or institution-affiliated party'.
(b)
Clarification That Change in Control Conditions Are Enforceable- Section 20=
6 of
the Federal Credit Union Act (12 U.S.C. 1786) is amended--
(1)
in subsection (b)(1), in the first sentence, by
striking `the granting of any application or other request by the credit un=
ion'
and inserting `any action on any application, notice, or other request by t=
he
credit union or institution-affiliated party,';
(2)
in subsection (g)(1)(A)(i)(III),
by striking `the grant of any application or other request by such credit
union' and inserting `any action on any application, notice, or request by =
such
credit union or institution-affiliated party'; and
(3)
in subsection (k)(2)(A)(iii), by striking `the g=
rant
of any application or other request by such credit union' and inserting `any
action on any application, notice, or other request by the credit union or
institution-affiliated party'.
Section
8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended--
(1)
in subsection (b)(1), in the 1st sentence--
(A)
by striking `in writing by the agency' and inser=
ting
`in writing by a Federal banking agency'; and
(B)
by striking `the agency may issue and serve' and
inserting `the appropriate Federal banking agency for the depository
institution may issue and serve';
(2)
in subsection (e)(1)--
(A)
in subparagraph (A)(i)(III),
by striking `in writing by the appropriate Federal banking agency' and
inserting `in writing by a Federal banking agency'; and (B)
in the undesignated matter at the end, by striking `the agency may serve up=
on
such party' and inserting `the appropriate Federal banking agency for the
depository institution may serve upon such party'; and (3)
in subsection (i)(2)=
(A)(iii),
by striking `in writing by the appropriate Federal banking agency' and
inserting `in writing by a Federal banking agency'. (a)
Insured Depository Institutions- Section 11(e)(1=
3) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(13)) is amended by add=
ing
at the end the following: `(C)
CONSENT REQUIREMENT- `(i) IN GENERAL- Except as otherwise provided by this s=
ection
or section 15, no person may exercise any right or power to terminate,
accelerate, or declare a default under any contract to which the depository
institution is a party, or to obtain possession of or exercise control over=
any
property of the institution or affect any contractual rights of the
institution, without the consent of the conservator or receiver, as
appropriate, during the 45-day period beginning on the date of the appointm=
ent
of the conservator, or during the 90-day period beginning on the date of the
appointment of the receiver, as applicable. `(ii)
CERTAIN EXCEPTIONS- No provision of this subparagraph shall apply to a dire=
ctor
or officer liability insurance contract or a depository institution bond, to
the rights of parties to certain qualified financial contracts pursuant to
paragraph (8), or to the rights of parties to netting contracts pursuant to
subtitle A of title IV of the Federal Deposit Insurance Corporation Improve=
ment
Act of 1991 (12 U.S.C. 4401 et seq.), or shall be construed as permitting t=
he
conservator or receiver to fail to comply with otherwise enforceable provis=
ions
of such contract. `(iii)
RULE OF CONSTRUCTION- Nothing in this subparagraph shall be construed to li=
mit
or otherwise affect the applicability of title 11, (b)
Insured Credit Unions- Section 207(c)(12) of the=
Federal
Credit Union Act (12 U.S.C. 1787(c)(12)) is amended by adding the following=
: `(C)
CONSENT REQUIREMENT- `(i) IN GENERAL- Except as otherwise provided by this
section, no person may exercise any right or power to terminate, accelerate=
, or
declare a default under any contract to which the credit union is a party, =
or
to obtain possession of or exercise control over any property of the credit
union or affect any contractual rights of the credit union, without the con=
sent
of the conservator or liquidating agent, as appropriate, during the 45-day
period beginning on the date of the appointment of the conservator, or duri=
ng
the 90-day period beginning on the date of the appointment of the liquidati=
ng
agent, as applicable. `(ii)
CERTAIN EXCEPTIONS- No provision of this subparagraph shall apply to a dire=
ctor
or officer liability insurance contract or a credit union bond, or to the
rights of parties to certain qualified financial contracts pursuant to
paragraph (8), or shall be construed as permitting the conservator or
liquidating agent to fail to comply with otherwise enforceable provisions of
such contract. `(iii)
RULE OF CONSTRUCTION- Nothing in this subparagraph shall be construed to li=
mit
or otherwise affect the applicability of title 11, Section
604(a) of the Fair Credit Reporting Act (15 U.S.C. 1681=
b(a))
is amended by adding at the end the following: `(6)
To the Federal Deposit Insurance Corporation or the National Credit Union
Administration as part of its preparation for its appointment or as part of=
its
exercise of powers, as conservator, receiver, or liquidating agent for an
insured depository institution or insured credit union under the Federal
Deposit Insurance Act or the Federal Credit Union Act, or other applicable
Federal or State law, or in connection with the resolution or liquidation o=
f a
failed or failing insured depository institution or insured credit union, as
applicable.'. (a)
Insured Depository Institutions- Section 15(b) of the Federal Deposit Insur=
ance
Act (12 U.S.C. 1825(b)) is amended by inserting immediately after paragraph=
(3)
the following: `(4)
EXEMPTION FROM CRIMINAL PROSECUTION- The Corporation shall be exempt from a=
ll
prosecution by the United States or any State, county, municipality, or loc=
al
authority for any criminal offense arising under Federal, State, county,
municipal, or local law, which was allegedly committed by the institution, =
or persons
acting on behalf of the institution, prior to the appointment of the
Corporation as receiver.'. (b)
Insured Credit Unions- Section 207(b)(2) of the
Federal Credit Union Act (12 U.S.C. 1787(b)(2)) is amended by adding at the=
end
the following: `(K)
EXEMPTION FROM CRIMINAL PROSECUTION- The Administration shall be exempt from
all prosecution by the United States or any State, county, municipality, or
local authority for any criminal offense arising under Federal, State, coun=
ty,
municipal, or local law, which was allegedly committed by a credit union, or
persons acting on behalf of a credit union, prior to the appointment of the
Administration as liquidating agent.'. (a)
Insured Depository Institutions- Section 11(f) of the Federal Deposit Insur=
ance
Act (12 U.S.C. 1821(f)) is amended by striking paragraphs (3) through (5) a=
nd
inserting the following: `(3)
RESOLUTION OF DISPUTES- A determination by the Corporation regarding any cl=
aim
for insurance coverage shall be treated as a final determination for purpos=
es
of this section. In its discretion, the Corporat=
ion
may promulgate regulations prescribing procedures for resolving any disputed
claim relating to any insured deposit or any determination of insurance
coverage with respect to any deposit. `(4)
REVIEW OF CORPORATION DETERMINATION- A final determination made by the
Corporation regarding any claim for insurance coverage shall be a final age=
ncy
action reviewable in accordance with chapter 7 of title 5, United States Co=
de,
by the United States district court for the Federal judicial district where=
the
principal place of business of the depository institution is located. `(5)
STATUTE OF LIMITATIONS- Any request for review of a final determination by =
the
Corporation regarding any claim for insurance coverage shall be filed with =
the
appropriate (b)
Insured Credit Unions- Section 207(d) of the Federal Credit Union Act (12
U.S.C. 1787(d)) is amended by striking paragraphs (3) through (5) and inser=
ting
the following: `(3)
RESOLUTION OF DISPUTES- A determination by the Administration regarding any
claim for insurance coverage shall be treated as a final determination for
purposes of this section. In its discretion, the=
Board
may promulgate regulations prescribing procedures for resolving any disputed
claim relating to any insured deposit or any determination of insurance
coverage with respect to any deposit. A final
determination made by the Board regarding any claim for insurance coverage
shall be a final agency action reviewable in accordance with chapter 7 of t=
itle
5, United States Code, by the `(4)
STATUTE OF LIMITATIONS- Any request for review of a final determination by =
the
Board regarding any claim for insurance coverage shall be filed with the
appropriate (a)
Insured Depository Institutions- Section 11(d)(1=
5)(D)
of the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(15)(D)) is amended-=
- (1)
by striking `After the end of the 6-year period'=
and
inserting the following: `(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: `(ii)
OLD RECORDS- Notwithstanding clause (i), the
Corporation may destroy records of an insured depository institution which =
are
at least 10 years old as of the date on which the Corporation is appointed =
as
the receiver of such depository institution in accordance with clause (i) at any time after such appointment is final, witho=
ut
regard to the 6-year period of limitation contained in clause (i).'. (b)
Insured Credit Unions- Section 207(b)(15)(D) of =
the
Federal Credit Union Act (12 U.S.C. 1787(b)(15)(D)) is amended-- (1)
by striking `After the end of the 6-year period'=
and
inserting the following: `(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: `(ii)
OLD RECORDS- Notwithstanding clause (i) the Boa=
rd may
destroy records of an insured credit union which are at least 10 years old =
as
of the date on which the Board is appointed as liquidating agent of such cr=
edit
union in accordance with clause (i) at any time=
after
such appointment is final, without regard to the 6-year period of limitation
contained in clause (i).'. (a)
Insured Depository Institutions- Section 10(f) of the Federal Deposit Insur=
ance
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 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) sh=
all
be deemed to be an original record for all purposes, including introduction=
in
evidence in all State and Federal courts or administrative agencies, and sh=
all
be admissible to prove any act, transaction, occurrence, or event therein
recorded. `(3)
AUTHORITY OF THE FEDERAL BANKING AGENCIES- Any photographs, microphotograph=
s,
or photographic film or copies thereof described in paragraph (1)(A) or
reproduction of electronically stored data described in paragraph (1)(B) sh=
all
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.'. (b)
Insured Credit Unions- Section 206(s) of the Federal Credit Union Act (12
U.S.C. 1786(s)) is amended by adding at the end the following: `(9)
PRESERVATION OF RECORDS- `(A)
IN GENERAL- The Board may cause any and all records, papers, or documents k=
ept
by the Administration or in the possession or custody of the Administration=
to
be-- `(i)
photographed or microphotographed or otherwise
reproduced upon film; or `(ii)
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 o=
ther
form of reproduction of electronically stored data. `(B)
TREATMENT AS ORIGINAL RECORDS- Any photographs, micrographs, or photographic
film or copies thereof described in subparagraph (A)(i=
)
or reproduction of electronically stored data described in subparagraph (A)=
(ii)
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. `(C)
AUTHORITY OF THE ADMINISTRATION- Any photographs, microphotographs, or
photographic film or copies thereof described in subparagraph (A)(i) or reproduction of electronically stored data desc=
ribed
in subparagraph (A)(ii) shall be preserved in such manner as the Administra=
tion
shall prescribe, and the original records, papers, or documents may be
destroyed or otherwise disposed of as the Administration may direct.'. Section
11(t) of the Federal Deposit Insurance Act (12 U.S.C. 1821(t)) is amended--=
(1)
in paragraph (1), by inserting `, in any capacit=
y,'
after `A covered agency'; and (2)
in paragraph (2)(A)-- (A)
in clause (i), by st=
riking
`appropriate'; (B)
by striking clause (ii); and (C)
by redesignating cla=
uses
(iii) through (vi) as clauses (ii) through (v), respectively. (a) Federal Reserve Act- The Federal Reserve =
Act (12 U.S.C. 221 et seq.) is amended-- (1)
in the second undesignated paragraph of the first
section (12 U.S.C. 221), by adding at the end the following: `For purposes =
of
this Act, a State bank includes any bank which is operating under the Code =
of
Law for the District of Columbia.'; and (2)
in the first sentence of the first undesignated
paragraph of section 9 (12 U.S.C. 321), by striking `incorporated by special
law of any State, or' and inserting `incorporated by special law of any Sta=
te,
operating under the Code of Law for the (b)
Bank Conservation Act- Section 202 of the Bank Conservation Act (12 U.S.C. =
202)
is amended-- (1)
by striking `means (1) any national' and inserti=
ng
`means any national'; and (2)
by striking `, and (2) any bank or trust company
located in the District of (c)
Depository Institution Deregulation and Monetary Control Act of 1980- Part =
C of
title VII of the Depository Institution Deregulation and Monetary Control A=
ct
of 1980 (12 U.S.C. 216 et seq.) is amended-- (1)
in paragraph (1) of section 731 (12 U.S.C. 216(1=
)), by
striking `and closed banks in the (2)
in paragraph (2) of section 732 (12 U.S.C. 216a(=
2)),
by striking `or closed banks in the (d)
Federal Deposit Insurance Act- Section 3(a)(2)(B=
) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(a)(2)(B)) is amended by
striking `(except a national bank)'. (e)
National Bank Consolidation and Merger Act- Section 7(1) of the National Ba=
nk
Consolidation and Merger Act (12 U.S.C. 215b(1))=
is
amended by striking `(except a national banking association located in the =
(f)
Act of August 17, 1950- Section 1(a) of the Act entitled `An Act to provide=
for
the conversion of national banking associations into and their merger or
consolidation with State banks, and for other purposes' and approved August=
17,
1950 (12 U.S.C. 214(a)) is amended by striking `(except a national banking
association)'. (g)
Federal Trade Commission Act- Section 18(f)(2) o=
f the
Federal Trade Commission Act (15 U.S.C. 57a(f)(2)) is amended-- (1)
in subparagraph (A), by striking `, banks operat=
ing
under the code of law for the (2)
in subparagraph (B), by striking `and banks oper=
ating
under the code of law for the 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 acc=
ount'
and `account accounts' each place any such term appears and insert `account=
'. (3)
In section 107(5)(E), strike the period at the e=
nd and
insert a semicolon. (4)
In each of paragraphs (6) and (7) of section 107, strike the period at the =
end
and insert a semicolon. (5)
In section 107(7)(D), strike `the Federal Saving=
s and
Loan Insurance Corporation or'. (6)
In section 107(7)(E), strike `the Federal Home L=
oan
Bank Board,' and insert `the Federal Housing Finance Board,'. (7)
In section 107(9), strike `subchapter III' and insert `title III'. (8)
In section 107(13), strike `and' after the semicolon at the end. (9)
In section 109(c)(2)(A)(i),
strike `(12 U.S.C. 4703(16))'. (10)
In section 120(h), strike `the Act approved July 30, 1947 (6 U.S.C., secs. 6-13),' and insert `chapter 93 of title 31, Uni=
ted
States Code,'. (11)
In section 201(b)(5), strike `section 116 of'. <=
o:p> (12)
In section 202(h)(3), strike `section 207(c)(1)'=
and
insert `section 207(k)(1)'. (13)
In section 204(b), strike `such others powers' and insert `such other power=
s'. (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' af=
ter
`as defined in'. (18)
In section 206(t)(2)(C), strike `material affect=
' and
insert `material effect'. (19)
In section 206(t)(4)(A)(ii)(II), strike `or' aft=
er the
semicolon at the end. (20)
In section 206A(a)(2)(A), strike `regulator agen=
cy'
and insert `regulatory agency'. (21)
In section 207(c)(5)(B)(i)(I),
insert `and' after the semicolon at the end. (22)
In the heading for subparagraph (A) of section 207(d)(<=
/span>3),
strike `TO' and insert `WITH'. (23)
In section 207(f)(3)(A), strike `category or
claimants' and insert `category of claimants'. (24)
In section 209(a)(8), strike the period at the e=
nd and
insert a semicolon. (25)
In section 216(n), insert `any action' before `that is required'. (26)
In section 304(b)(3), strike `the affairs or such
credit union' and insert `the affairs of such credit union'. (27)
In section 310, strike `section 102(e)' and insert `section 102(d)'. (a) In General- Section 2 of the Bank Holding Company A=
ct of
1956 (12 U.S.C. 1841) is amended-- (1)
in subsection (c)(2), by striking subparagraphs =
(I)
and (J); and (2)
by striking subsection (m) and inserting the
following: `(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)'. Section
503 of the Gramm-Leach-Bliley Act (15 U.S.C. 68=
03),
as amended by section 609, is amended by adding at the end the following: <=
o:p> `(e)
Model Forms- `(1)
IN GENERAL- The agencies referred to in section 504(a)(1) shall jointly dev=
elop
a model form which may be used, at the option of the financial institution,=
for
the provision of disclosures under this section. `(2)
FORMAT- A model form developed under paragraph (1) shall-- `(A)
be comprehensible to consumers, with a clear format and design; `(B)
provide for clear and conspicuous disclosures; `(C)
enable consumers easily to identify the sharing
practices of a financial institution and to compare privacy practices among
financial institutions; and `(D)
be succinct, and use an easily readable type font. `(3)
TIMING- A model form required to be developed by this subsection shall be
issued in proposed form for public comment not later than 180 days after the
date of enactment of this subsection. `(4)
SAFE HARBOR- Any financial institution that elects to provide the model form
developed by the agencies under this subsection shall be deemed to be in
compliance with the disclosures required under this section.'. (a) In General- The Fair Debt Collection Practices Act =
(15
U.S.C. 1692 et seq.) is amended-- (1)
by redesignating sec=
tion 818
as section 819; and (2)
by inserting after section 817 the following: `(a)
In General- `(1)
TREATMENT OF CERTAIN PRIVATE ENTITIES- Subject to paragraph (2), a private
entity shall be excluded from the definition of a debt collector, pursuant =
to
the exception provided in section 803(6), with respect to the operation by =
the
entity of a program described in paragraph (2)(A) under a contract describe=
d in
paragraph (2)(B). `(2)
CONDITIONS OF APPLICABILITY- Paragraph (1) shall apply if-- `(A)
a State or district attorney establishes, within the jurisdiction of such S=
tate
or district attorney and with respect to alleged bad check violations that =
do
not involve a check described in subsection (b), a pretrial diversion progr=
am
for alleged bad check offenders who agree to participate voluntarily in such
program to avoid criminal prosecution; `(B)
a private entity, that is subject to an administrative support services
contract with a State or district attorney and operates under the direction,
supervision, and control of such State or district attorney, operates the
pretrial diversion program described in subparagraph (A); and `(C)
in the course of performing duties delegated to =
it by
a State or district attorney under the contract, the private entity referre=
d to
in subparagraph (B)-- `(i)
complies with the penal laws of the State; `(ii)
conforms with the terms of the contract and directives of the State or dist=
rict
attorney; `(iii)
does not exercise independent prosecutorial discretion; `(iv)
contacts any alleged offender referred to in subparagraph (A) for purposes =
of
participating in a program referred to in such paragraph-- `(I)
only as a result of any determination by the State or district attorney that
probable cause of a bad check violation under State penal law exists, and t=
hat
contact with the alleged offender for purposes of participation in the prog=
ram
is appropriate; and `(II)
the alleged offender has failed to pay the bad check after demand for payme=
nt,
pursuant to State law, is made for payment of the check amount; `(v)
includes as part of an initial written communication with an alleged offend=
er a
clear and conspicuous statement that-- `(I)
the alleged offender may dispute the validity of any alleged bad check
violation; `(II)
where the alleged offender knows, or has reasonable cause to believe, that =
the
alleged bad check violation is the result of theft or forgery of the check,
identity theft, or other fraud that is not the result of the conduct of the
alleged offender, the alleged offender may file a crime report with the
appropriate law enforcement agency; and `(III)
if the alleged offender notifies the private entity or the district attorne=
y in
writing, not later than 30 days after being contacted for the first time
pursuant to clause (iv), that there is a dispute pursuant to this subsectio=
n,
before further restitution efforts are pursued, the district attorney or an
employee of the district attorney authorized to make such a determination m=
akes
a determination that there is probable cause to believe that a crime has be=
en
committed; and `(vi)
charges only fees in connection with services under the contract that have =
been
authorized by the contract with the State or district attorney. `(b)
Certain Checks Excluded- A check is described in this subsection if the che=
ck
involves, or is subsequently found to involve-- `(1)
a postdated check presented in connection with a payday loan, or other simi=
lar
transaction, where the payee of the check knew that the issuer had insuffic=
ient
funds at the time the check was made, drawn, or delivered; `(2)
a stop payment order where the issuer acted in good faith and with reasonab=
le
cause in stopping payment on the check; `(3)
a check dishonored because of an adjustment to the issuer's account by the
financial institution holding such account without providing notice to the
person at the time the check was made, drawn, or delivered; `(4)
a check for partial payment of a debt where the payee had previously accept=
ed
partial payment for such debt; `(5)
a check issued by a person who was not competent, or was not of legal age, =
to
enter into a legal contractual obligation at the time the check was made,
drawn, or delivered; or `(6)
a check issued to pay an obligation arising from a transaction that was ill=
egal
in the jurisdiction of the State or district attorney at the time the check=
was
made, drawn, or delivered. `(c) Definitions- For purposes of this section, the foll=
owing definitions
shall apply: `(1)
STATE OR DISTRICT ATTORNEY- The term `State or district attorney' means the
chief elected or appointed prosecuting attorney in a district, county (as
defined in section 2 of title 1, United States Code), municipality, or comp=
arable
jurisdiction, including State attorneys general who act as chief elected or
appointed prosecuting attorneys in a district, county (as so defined),
municipality or comparable jurisdiction, who may be referred to by a variet=
y of
titles such as district attorneys, prosecuting attorneys, commonwealth's
attorneys, solicitors, county attorneys, and state's attorneys, and who are
responsible for the prosecution of State crimes and violations of
jurisdiction-specific local ordinances. `(2)
CHECK- The term `check' has the same meaning as in section 3(6) of the Check
Clearing for the 21st Century Act. `(3)
BAD CHECK VIOLATION- The term `bad check violation' means a violation of the
applicable State criminal law relating to the writing of dishonored checks.=
'. (b)
Clerical Amendment- The table of sections for the Fair Debt Collection
Practices Act (15 U.S.C. 1692 et seq.) is amended-- (1)
by redesignating the=
item
relating to section 818 as section 819; and (2)
by inserting after the item relating to section =
817
the following new item: `818. Exception for certain bad check enforcement programs
operated by private entities.'. (a) In General- Section 9301(2) of title 31, United Sta=
tes
Code, is amended to read as follows: `(2)
`eligible obligation' means any security designated as acceptable in lieu o=
f a
surety bond by the Secretary of the Treasury.'. (b)
Use of Eligible Obligations Instead of Surety Bonds- Section 9303(a)(2) of title 31, United States Code, is amended to re=
ad as
follows: `(2)
as determined by the Secretary of the Treasury, have a market value that is
equal to or greater than the amount of the required surety bond; and'. (c)
Technical Amendments- Section 9303 of title 31, United States Code, is
amended-- (1)
in the section heading, by striking `Governme=
nt
obligations' and inserting `eligible obligations'; (2)
in subsection (f), by striking `Government
obligations' and inserting `eligible obligations'; (3)
by striking `a Government obligation' each place=
that
term appears and inserting `an eligible obligation'; and (4)
by striking `Government obligation' each place t=
hat
term appears and inserting `eligible obligation'. (a)
In General- The Comptroller General of the United States shall conduct a st=
udy
on the volume of currency transaction reports filed with the Secretary of t=
he
Treasury under section 5313(a) of title 31, United States Code. (b)
Purpose- The purpose of the study required under subsection (a) shall be-- =
(1)
to evaluate, on the basis of actual filing data,
patterns of currency transaction reports filed by depository institutions of
all sizes and locations; and (2)
to identify whether and the extent to which the filing rules for currency
transaction reports described in section 5313(a) of title 31, United States
Code-- (A)
are burdensome; and (B)
can or should be modified to reduce such burdens
without harming the usefulness of such filing rules to Federal, State, and
local anti-terrorism, law enforcement, and regulatory operations. (c)
Period Covered- The study required under subsection (a) shall cover the per=
iod
beginning at least 3 calendar years prior to the date of enactment of this
section. (d)
Content- The study required under subsection (a) shall include a detailed
evaluation of-- (1)
the extent to which depository institutions are availing themselves of the
exemption system for the filing of currency transaction reports set forth in
section 103.22(d) of title 31, Code of Federal Regulations, as in effect du=
ring
the study period (in this section referred to as the `exemption system'),
including specifically, for the study period-- (A)
the number of currency transaction reports filed=
(out
of the total annual numbers) involving companies that are listed on the New
York Stock Exchange or the NASDAQ National Market; (B)
the number of currency transaction reports filed by the 100 largest deposit=
ory
institutions in the United States by asset size, and thereafter in tiers of
100, by asset size; (C)
the number of currency transaction reports filed by the 200 smallest deposi=
tory
institutions in the United States, including the number of such currency
transaction reports involving companies listed on the New York Stock Exchan=
ge
or the NASDAQ National Market; and (D)
the number of currency transaction reports that =
would
have been filed during the filing period if the exemption system had been u=
sed
by all depository institutions in the (2)
what types of depository institutions are using =
the
exemption system, and the extent to which such exemption system is used; (3)
difficulties that limit the willingness or ability of depository institutio=
ns
to reduce their currency transaction reports reporting burden by making use=
of
the exemption system, including considerations of cost, especially in the c=
ase
of small depository institutions; (4)
the extent to which bank examination difficultie=
s have
limited the use of the exemption system, especially with respect to-- (A)
the exemption of privately-held companies permit=
ted
under such exemption system; and (B)
whether, on a sample basis, the reaction of bank
examiners to implementation of such exemption system is justified or inhibi=
ts
use of such exemption system without an offsetting compliance benefit; (5)
ways to improve the use of the exemption system by depository institutions,
including making such exemption system mandatory in order to reduce the vol=
ume
of currency transaction reports unnecessarily filed; and (6)
the usefulness of currency transaction reports f=
iled
to law enforcement agencies, taking into account-- (A)
advances in information technology; (B)
the impact, including possible loss of investiga=
tive
data, that various changes in the exemption system would have on the useful=
ness
of such currency transaction reports; and (C)
changes that could be made to the exemption syst=
em
without affecting the usefulness of currency transaction reports. (e)
Assistance- The Secretary of the Treasury shall provide such information
processing and other assistance, including from the Commissioner of the
Internal Revenue Service and the Director of the Financial Crimes Enforceme=
nt
Network, to the Comptroller General in analyzing currency transaction report
filings for the study period described in subsection (c), as is necessary to
provide the information required by subsection (a). (f)
Views- The study required under subsection (a) shall, if appropriate, inclu=
de a
discussion of the views of a representative sample of Federal, State, and l=
ocal
law enforcement and regulatory officials and officials of depository instit=
utions
of all sizes. (g)
Recommendations- The study required under subsection (a) shall, if appropri=
ate,
include recommendations for changes to the exemption system that would refl=
ect
a reduction in unnecessary cost to depository institutions, assuming reason=
ably
full implementation of such exemption system, without reducing the usefulne=
ss
of the currency transaction report filing system to anti-terrorism, law
enforcement, and regulatory operations. (h)
Report- Not later than 15 months after the date of enactment of this sectio=
n,
the Comptroller General shall submit a report on the study required under
subsection (a) to the Committee on Banking, Housing, and Urban Affairs of t=
he
Senate and the Committee on Financial Services of the House of Representati=
ves.
(a) Study- The Comptroller General of the (1)
the vast diversity in the size and complexity of
institutions in the banking and financial services sector, including the
differences in capital, market share, geographical limitations, product
offerings, and general activities; (2)
the differences in powers among the depository
institution charters, including-- (A)
identification of the historical trends in the
evolution of depository institution charters; (B)
an analysis of the impact of charter differences=
to
the overall safety and soundness of the banking industry, and the effective=
ness
of the applicable depository institution regulator; and (C)
an analysis of the impact that the availability =
of
options for depository institution charters on the development of the banki=
ng
industry; (3)
the impact that differences of size and overall complexity among financial
institutions makes with respect to regulatory oversight, efficiency, safety=
and
soundness, and charter options for financial institutions; and (4)
the aggregate cost and breakdown associated with
regulatory compliance for banks, savings associations, credit unions, or any
other financial institution, including potential disproportionate impact th=
at
the cost of compliance may pose on smaller institutions, given the percenta=
ge
of personnel that the institution must dedicate solely to compliance. (b)
Considerations- In conducting the study under subsection (a), the Comptroll=
er
General shall consider the efficacy and efficiency of the consolidation of
financial regulators, as well as charter simplification and homogenization.=
(c)
Report- Not later than 1 year after the date of enactment of this Act, the
Comptroller General of the Passed the Senat=
e May
25, 2006. Attest: Secretary. 109th CONGRESS 2d Session S. 2856 AN ACT To provide regul=
atory
relief and improve productivity for insured depository institutions, and for
other purposes. ENDSEC. 718. RECEI=
VER OR
CONSERVATOR CONSENT REQUIREMENT.
SEC. 719. ACQUI=
SITION
OF FICO SCORES.
SEC. 720. ELIMI=
NATION
OF CRIMINAL INDICTMENTS AGAINST RECEIVERSHIPS.
SEC. 721. RESOL=
UTION OF
DEPOSIT INSURANCE DISPUTES.
SEC. 722.
RECORDKEEPING.
SEC. 723. PRESE=
RVATION
OF RECORDS.
SEC. 724. TECHN=
ICAL
AMENDMENTS TO INFORMATION SHARING PROVISION IN THE FEDERAL DEPOSIT INSURANCE
ACT.
SEC. 725. TECHN=
ICAL AND
CONFORMING AMENDMENTS RELATING TO BANKS OPERATING UNDER THE CODE OF LAW FOR=
THE
SEC. 726. TECHN=
ICAL
CORRECTIONS TO THE FEDERAL CREDIT UNION ACT.
SEC. 727. REPEAL
OF OBSOLETE PROVISIONS OF THE BANK HOLDING COMPANY ACT OF 1956.
SEC. 728. DEVEL=
OPMENT
OF MODEL PRIVACY FORM.
TITLE
VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
SEC. 801. EXCEP=
TION FOR
CERTAIN BAD CHECK ENFORCEMENT PROGRAMS.
`Sec. 818. Exception
for certain bad check enforcement programs operated by private entities
TITLE
IX--CASH MANAGEMENT MODERNIZATION
SEC. 901. COLLA=
TERAL
MODERNIZATION.
TITLE
X--STUDIES AND REPORTS
SEC. 1001. STUDY
AND REPORT BY THE COMPTROLLER GENERAL ON THE CURRENCY TRANSACTION REPORT FI=
LING
SYSTEM.
SEC. 1002. STUDY
AND REPORT ON INSTITUTION DIVERSITY AND CONSOLIDATION.