109th CONGRESS
2d Session
S. 2856
AN ACT
To provide regulatory relief and improve productivity for insured
depository institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Financial Services Regulatory
Relief Act of 2006'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--BROKER RELIEF
Sec. 101. Rulemaking required for revised definition of broker in the
Securities Exchange Act of 1934.
TITLE II--MONETARY POLICY PROVISIONS
Sec. 201. Authorization for the Federal reserve to pay interest on reserves.
Sec. 202. Increased flexibility for the Federal Reserve Board to establish
reserve requirements.
TITLE III--NATIONAL BANK PROVISIONS
Sec. 301. Voting in shareholder elections.
Sec. 302. Simplifying dividend calculations for national banks.
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.
TITLE IV--SAVINGS ASSOCIATION PROVISIONS
Sec. 401. Parity for savings associations under the Securities Exchange
Act of 1934 and the Investment Advisers Act of 1940.
Sec. 402. Repeal of overlapping rules governing purchased mortgage servicing
rights.
Sec. 403. Clarifying citizenship of Federal savings associations for Federal
court jurisdiction.
Sec. 404. Repeal of limitation on loans to one borrower.
TITLE V--CREDIT UNION PROVISIONS
Sec. 501. Leases of land on Federal facilities for credit unions.
Sec. 502. Increase in general 12-year limitation of term of Federal credit
union loans to 15 years.
Sec. 503. Check cashing and money transfer services offered within the
field of membership.
Sec. 504. Clarification of definition of net worth under certain circumstances
for purposes of prompt corrective action.
TITLE VI--DEPOSITORY INSTITUTION PROVISIONS
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-through 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 application requirements.
Sec. 607. Nonwaiver of privileges.
Sec. 608. Clarification of application requirements for optional 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.
TITLE VII--BANKING AGENCY PROVISIONS
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 depository institutions.
Sec. 703. Cross guarantee authority.
Sec. 704. Golden parachute authority and nonbank holding companies.
Sec. 705. Amendments relating to change in bank control.
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 crimes 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 Basel 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.
Sec. 723. Preservation of records.
Sec. 724. Technical amendments to information sharing provision in the
Federal Deposit Insurance Act.
Sec. 725. Technical and conforming amendments relating to banks operating
under the Code of Law for the District of Columbia.
Sec. 726. Technical corrections to the Federal Credit Union Act.
Sec. 727. Repeal of obsolete provisions of the Bank Holding Company Act
of 1956.
Sec. 728. Development of model privacy forms.
TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
Sec. 801. Exception for certain bad check enforcement programs.
TITLE IX--CASH MANAGEMENT MODERNIZATION
Sec. 901. Collateral modernization.
TITLE X--STUDIES AND REPORTS
Sec. 1001. Study and report by the Comptroller General on the currency
transaction report filing system.
Sec. 1002. Study and report on institution diversity and consolidation.
TITLE I--BROKER RELIEF
SEC. 101. RULEMAKING REQUIRED FOR REVISED DEFINITION OF BROKER IN THE
SECURITIES EXCHANGE ACT OF 1934.
(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
exceptions 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 enactment.
(b) Consultation- Prior to issuing the final rule required by this section,
the Commission shall consult with and seek the concurrence of the Federal
banking 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 section 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 requesting 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 court.
(3) EXCLUSIVE JURISDICTION- On the date of the filing of a petition under
paragraph (1), the court has jurisdiction, which becomes exclusive on
the filing of the 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-Leach-Bliley Act,
and appropriate in light of the history, purpose, and extent of the rule
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
agencies' means the Board of Governors of the Federal Reserve System, the
Office of the Comptroller of the Currency, the Office of Thrift Supervision,
and the Federal Deposit Insurance Corporation.
TITLE II--MONETARY POLICY PROVISIONS
SEC. 201. AUTHORIZATION FOR THE FEDERAL RESERVE TO PAY INTEREST ON RESERVES.
(a) In General- Section 19(b) of the Federal Reserve Act (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 of a depository institution may receive earnings to be paid
by the Federal Reserve 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 maintain balances at such banks, or on whose behalf such balances
are maintained; and
`(iii) the responsibilities of depository institutions, Federal Home
Loan Banks, and the National Credit Union Administration Central Liquidity
Facility with respect to the crediting and distribution of earnings
attributable to balances maintained, in accordance with subsection
(c)(1)(A), in a Federal Reserve bank 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 paragraph (1)(A), includes any trust company, corporation organized
under section 25A or having an agreement with the Board under section
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
(2) in subsection (c)(1)(A), by striking `subsection (b)(4)(C)' and inserting
`subsection (b)'.
SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RESERVE BOARD TO ESTABLISH
RESERVE REQUIREMENTS.
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),'.
TITLE III--NATIONAL BANK PROVISIONS
SEC. 301. VOTING IN SHAREHOLDER ELECTIONS.
Section 5144 of the Revised Statutes of the United States (12 U.S.C. 61)
is amended--
(1) by striking `or to cumulate' and inserting `or, if so provided by
the articles of association of the national bank, to cumulate'; and
(2) by striking the comma after `his shares shall equal'.
SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL BANKS.
(a) In General- Section 5199 of the Revised Statutes of the United States
(12 U.S.C. 60) is amended to read as follows:
`SEC. 5199. NATIONAL BANK DIVIDENDS.
`(a) In General- Subject to subsection (b), the directors of any national
bank may declare a dividend of so much of the undivided profits of the bank
as the directors judge to be expedient.
`(b) Approval Required Under Certain Circumstances- A national bank may
not declare and pay dividends in any year in excess of an amount equal to
the sum of the total of the net income of the bank for that year and the
retained net income of the bank for the preceding 2 years, minus the sum
of any transfers required 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 the Currency approves the declaration and payment
of dividends in excess of such amount.'.
(b) Clerical Amendment- The table of sections for chapter three of title
LXII of the Revised Statutes of the United States is amended by striking
the item relating to section 5199 and inserting the following:
`5199. National bank dividends.'.
SEC. 303. REPEAL OF OBSOLETE LIMITATION ON REMOVAL AUTHORITY OF THE COMPTROLLER
OF THE CURRENCY.
Section 8(e)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(4))
is amended by striking the 5th sentence.
SEC. 304. REPEAL OF OBSOLETE PROVISION IN THE REVISED STATUTES.
Section 5143 of the Revised Statutes of the United States (12 U.S.C. 59)
is amended to read as follows:
`SEC. 5143. REDUCTION OF CAPITAL.
`(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.'.
TITLE IV--SAVINGS ASSOCIATION PROVISIONS
SEC. 401. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE SECURITIES EXCHANGE
ACT OF 1934 AND THE INVESTMENT ADVISERS ACT OF 1940.
(a) Securities Exchange Act of 1934-
(1) DEFINITION OF BANK- Section 3(a)(6) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)(6)) is amended--
(A) in subparagraph (A), by inserting `or a Federal savings association,
as defined in section 2(5) of the Home Owners' Loan Act' after `a banking
institution organized under the laws of the United States'; and
(B) in subparagraph (C)--
(i) by inserting `or savings association, as defined in section 2(4)
of the Home Owners' Loan Act' after `banking institution'; and
(ii) by inserting `or savings associations' after `having supervision
over banks'.
(2) INCLUSION OF OTS UNDER THE DEFINITION OF APPROPRIATE REGULATORY AGENCY
FOR CERTAIN PURPOSES- Section 3(a)(34) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)(34)) is amended--
(A) in subparagraph (A)--
(i) in clause (ii), by striking `(i) or (iii)' and inserting `(i),
(iii), or (iv)';
(ii) in clause (iii), by striking `and' at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
`(iv) the Director of the Office of Thrift Supervision, in the case
of a savings association (as defined in section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(b))), the deposits of which
are insured by the Federal Deposit Insurance Corporation, a subsidiary
or a department or division of any such savings association, or a
savings and loan holding company; and';
(B) in subparagraph (B)--
(i) in clause (ii), by striking `(i) or (iii)' and inserting `(i),
(iii), or (iv)';
(ii) in clause (iii), by striking `and' at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
`(iv) the Director of the Office of Thrift Supervision, in the case
of a savings association (as defined in section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(b))), the deposits of which
are insured by the Federal Deposit Insurance Corporation, or a subsidiary
of any such savings association, or a savings and loan holding company;
and';
(C) in subparagraph (C)--
(i) in clause (ii), by striking `(i) or (iii)' and inserting `(i),
(iii), or (iv)';
(ii) in clause (iii), by striking `and' at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
`(iv) the Director of the Office of Thrift Supervision, in the case
of a savings association (as defined in section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(b))), the deposits of which
are insured by the Federal Deposit Insurance Corporation, a 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 striking `and' at the end;
(ii) by redesignating clause (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 Deposit 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 defined in section 2(5) of the Home Owners' Loan Act' after `a banking
institution organized under the laws of the United States'; and
(B) in subparagraph (C)--
(i) by inserting `, savings association, as defined in section 2(4)
of the Home Owners' Loan Act,' after `banking institution'; and
(ii) by inserting `or savings associations' after `having supervision
over banks'.
(2) CONFORMING AMENDMENTS- 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
that 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),'.
SEC. 402. REPEAL OF OVERLAPPING RULES GOVERNING PURCHASED MORTGAGE SERVICING
RIGHTS.
Section 5(t) of the Home Owners' Loan Act (12 U.S.C. 1464(t)) is amended--
(1) by striking paragraph (4) and inserting the following:
(2) in paragraph (9)(A), by striking `intangible assets, plus' and all
that follows through the period at the end and inserting `intangible assets.'.
SEC. 403. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS ASSOCIATIONS FOR FEDERAL
COURT JURISDICTION.
Section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) is amended by adding
at the end the following:
`(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.'.
SEC. 404. REPEAL OF LIMITATION ON LOANS TO ONE BORROWER.
Section 5(u)(2)(A) of the Home Owners' Loan Act (12 U.S.C. 1464(u)(2)(A))
is amended--
(A) by striking `for any' and inserting `For any'; and
(B) by striking `; or' and inserting a period; and
(A) by striking `to develop domestic' and inserting `To develop domestic';
(B) by striking subclause (I); and
(C) by redesignating subclauses (II) through (V) as subclauses (I) through
(IV), respectively.
TITLE V--CREDIT UNION PROVISIONS
SEC. 501. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT UNIONS.
(a) In General- Section 124 of the Federal Credit Union Act (12 U.S.C. 1770)
is amended--
(1) by striking `Upon application by any credit union' and inserting `Notwithstanding
any other provision of law, upon application by any credit union';
(2) by inserting `on lands reserved for the use of, and under the exclusive
or concurrent jurisdiction of, the United States or' after `officer or
agency of the United States charged with the allotment of space';
(3) by inserting `lease land or' after `such officer or agency may in
his or its discretion'; and
(4) by inserting `or the facility built on the lease land' after `credit
union to be served by the allotment of space'.
(b) Clerical Amendment- The section heading for section 124 of the Federal
Credit Union Act (12 U.S.C. 1770) is amended by inserting `or federal land'
after `buildings'.
SEC. 502. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF FEDERAL CREDIT
UNION LOANS TO 15 YEARS.
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
maturities of which shall not exceed twelve years' and inserting `to make
loans, the maturities of which shall not exceed 15 years,'.
SEC. 503. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED WITHIN THE
FIELD OF MEMBERSHIP.
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 instruments (including international and domestic electronic
fund transfers); and
`(B) to cash checks and money orders and receive international and domestic
electronic fund transfers for persons in the field of membership for
a fee;'.
SEC. 504. CLARIFICATION OF DEFINITION OF NET WORTH UNDER CERTAIN CIRCUMSTANCES
FOR PURPOSES OF PROMPT CORRECTIVE ACTION.
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 balance'; and
(2) by inserting `, together with any amounts that were previously retained
earnings of any other credit union with which the credit union has combined'
before the semicolon at the end.
TITLE VI--DEPOSITORY INSTITUTION PROVISIONS
SEC. 601. REPORTING REQUIREMENTS RELATING TO INSIDER LENDING.
(a) Reporting Requirements Regarding Loans to Executive Officers of Member
Banks- Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended--
(1) by striking paragraphs (6) and (9); and
(2) by redesignating paragraphs (7), (8), and (10) as paragraphs (6),
(7), and (8), respectively.
(b) Reporting Requirements Regarding Loans From Correspondent Banks to Executive
Officers and Shareholders of Insured Banks- Section 106(b)(2) of the Bank
Holding Company Act Amendments of 1970 (12 U.S.C. 1972(2)) is amended--
(1) by striking subparagraph (G); and
(2) by redesignating subparagraphs (H) and (I) as subparagraphs (G) and
(H), respectively.
SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK SERVICE
COMPANIES AUTHORIZED.
(a) In General- Sections 2 and 3 of the Bank Service Company Act (12 U.S.C.
1862, 1863) are each amended by striking `insured bank' each place 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
Company Act (12 U.S.C. 1861(b)) is amended--
(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 following:
`(5) INSURED DEPOSITORY INSTITUTION- The term `insured depository institution'
has the same meaning as in section 3(c) of the Federal Deposit Insurance
Act;';
(C) by striking `and' at the end of paragraph (7);
(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
(i) by striking `insured bank' 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 depository 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 `relating
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 savings 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--
(i) by striking `insured bank' and inserting `insured depository institution';
and
(ii) by striking `bank's'; and
(iii) by inserting before the period `for the insured depository institution';
(i) by striking `insured bank' and inserting `insured depository institution';
(ii) by inserting `authorized only' after `performs any service';
and
(iii) by inserting `authorized only' after `perform any activity';
and
(i) by striking `the bank or banks' and inserting `any insured depository
institution'; and
(ii) by striking `capability of the bank' and inserting `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
(i) by striking `a bank' each place that term appears and inserting
`a depository institution'; and
(ii) by striking `the bank' each place that term appears and inserting
`the depository institution'.
SEC. 603. AUTHORIZATION FOR MEMBER BANK TO USE PASS-THROUGH RESERVE ACCOUNTS.
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'.
SEC. 604. STREAMLINING REPORTS OF CONDITION.
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 Relief Act of 2006 and before the end of each 5-year period
thereafter, each Federal banking agency shall, in conjunction with the
other relevant Federal banking agencies, review the information and
schedules that are required to be filed by an insured depository institution
in a report of condition required under paragraph (3).
`(B) REDUCTION OR ELIMINATION OF INFORMATION FOUND TO BE UNNECESSARY-
After completing the review required by subparagraph (A), a Federal
banking agency, in conjunction with the other relevant Federal banking
agencies, shall reduce or eliminate any requirement to file information
or schedules under paragraph (3) (other than information or schedules
that are otherwise required by law) if the agency determines that the
continued collection of such information or schedules is no longer necessary
or appropriate.'.
SEC. 605. EXPANSION OF ELIGIBILITY FOR 18-MONTH EXAMINATION SCHEDULE FOR
COMMUNITY BANKS.
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'.
SEC. 606. STREAMLINING DEPOSITORY INSTITUTION MERGER APPLICATION REQUIREMENTS.
(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 General of the United States; and
`(ii) provide a copy of the request to the Corporation (when the Corporation
is not the responsible agency).
`(B) FURNISHING OF REPORT- The report requested under subparagraph (A)
shall be furnished by the Attorney General to the responsible agency--
`(i) not 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 under 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 and 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 between 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
requested a report on the competitive factors within 10 days, the transaction
may not be consummated before the fifth calendar day after the date of
approval by the agency.'.
SEC. 607. NONWAIVER OF PRIVILEGES.
(a) Insured Depository Institutions- Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by adding at the end the following:
`(x) Privileges Not Affected by Disclosure to Banking Agency or Supervisor-
`(1) IN GENERAL- The submission by any person of any information to any
Federal banking agency, State bank supervisor, or foreign banking authority
for any purpose in the course of any supervisory or regulatory process
of such agency, supervisor, or authority shall not be construed as waiving,
destroying, or otherwise affecting any privilege such person may claim
with respect to such information under Federal or State law as to any
person or entity other than such agency, supervisor, or authority.
`(2) RULE OF CONSTRUCTION- No provision of paragraph (1) may be construed
as implying or establishing that--
`(A) any person waives any privilege applicable to information that
is submitted or transferred under any circumstance to which paragraph
(1) does not apply; or
`(B) any person would waive any privilege applicable to any information
by submitting the information to any Federal banking agency, State bank
supervisor, or foreign banking authority, but for this subsection.'
(b) Insured Credit Unions- Section 205 of the Federal Credit Union Act (12
U.S.C.1785) is amended by adding at the end the following:
`(j) Privileges Not Affected by Disclosure to Banking Agency or Supervisor-
`(1) IN GENERAL- The submission by any person of any information to the
Administration, any State credit union supervisor, or foreign banking
authority for any purpose in the course of any supervisory or regulatory
process of such Board, supervisor, or authority shall not be construed
as waiving, destroying, or otherwise affecting any privilege such person
may claim with respect to such information under Federal or State law
as to any person or entity other than such Board, supervisor, or authority.
`(2) RULE OF CONSTRUCTION- No provision of paragraph (1) may be construed
as implying or establishing that--
`(A) any person waives any privilege applicable to information that
is submitted or transferred under any circumstance to which paragraph
(1) does not apply; or
`(B) any person would waive any privilege applicable to any information
by submitting the information to the Administration, any State credit
union supervisor, or foreign banking authority, but for this subsection.'.
SEC. 608. CLARIFICATION OF APPLICATION REQUIREMENTS FOR OPTIONAL CONVERSION
FOR FEDERAL SAVINGS ASSOCIATIONS.
(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
before the date of enactment of the Gramm-Leach-Bliley Act, with branches
in operation before such date of enactment in 1 or more States, 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
State bank supervisor and the appropriate Federal banking agency for
each State bank, into 1 or more national or State banks, each of which
may encompass 1 or more 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 only 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 under this paragraph.
`(D) DEFINITIONS- For purposes of this paragraph, the terms `State bank'
and `State bank supervisor' have the same meanings as in section 3 of
the Federal Deposit 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) of the Home Owners'
Loan Act' after `Subject to section 5(d)'; and
(2) in paragraph (2), after `insured State,' by inserting `or Federal'.
SEC. 609. EXEMPTION FROM DISCLOSURE OF PRIVACY POLICY FOR ACCOUNTANTS.
(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 any 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 legislative 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)
from any provision of this section.
`(3) DEFINITIONS- For purposes of this subsection, the term `State' means
any State or territory of the United States, the District of Columbia,
Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific
Islands, the Virgin Islands, or the Northern Mariana Islands.'.
(b) Clerical Amendments- Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C.
6803) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) in subsection (a), by striking `Such disclosures' and inserting the
following:
`(b) Regulations- Disclosures required by subsection (a)'.
SEC. 610. INFLATION ADJUSTMENT FOR THE SMALL DEPOSITORY INSTITUTION EXCEPTION
UNDER THE DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS ACT.
Section 203(1) of the Depository Institution Management Interlocks Act (12
U.S.C. 3202(1)) is amended by striking `$20,000,000' and inserting `$50,000,000'.
SEC. 611. MODIFICATION TO CROSS MARKETING RESTRICTIONS.
Section 4(n)(5)(B) of the Bank Holding Company Act of 1956 (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)'.
TITLE VII--BANKING AGENCY PROVISIONS
SEC. 701. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW OF APPOINTMENT OF
A RECEIVER FOR DEPOSITORY INSTITUTIONS.
(a) National Banks- Section 2 of the National Bank Receivership Act (12
U.S.C. 191) is amended--
(1) by amending the section heading to read as follows:
`SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL BANK.
`(a) In General- The Comptroller of the Currency'; and
(2) by adding at the end the following:
`(b) Judicial Review- If the Comptroller of the Currency appoints a receiver
under subsection (a), the national bank may, within 30 days thereafter,
bring an action in the United States district court for the judicial district
in which the home office of such bank is located, or in the United States
District Court for the District of Columbia, for an order requiring the
Comptroller of the Currency to remove the receiver, and the court shall,
upon the merits, dismiss such action or direct the Comptroller of the Currency
to remove the receiver.'.
(b) Insured Depository Institutions- Section 11(c)(7) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(c)(7)) is amended to read as follows:
`(7) JUDICIAL REVIEW- If the Corporation is appointed (including the appointment
of the Corporation as receiver by the Board of Directors) as conservator
or receiver of a depository institution under paragraph (4), (9), or (10),
the depository institution may, not later than 30 days thereafter, bring
an action in the United States district court for the judicial district
in which the home office of such depository institution is located, or
in the United States District Court for the District of Columbia, for
an order requiring the Corporation to be removed as the conservator or
receiver (regardless of how such appointment was made), and the court
shall, upon the merits, dismiss such action or direct the Corporation
to be removed as the conservator or receiver.'.
(c) 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.
SEC. 702. ENHANCING THE SAFETY AND SOUNDNESS OF INSURED DEPOSITORY INSTITUTIONS.
(a) Clarification Relating to the Enforceability of Agreements and Conditions-
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by
adding at the end the following:
`SEC. 49. ENFORCEMENT OF AGREEMENTS.
`(a) In General- Notwithstanding clause (i) or (ii) of section 8(b)(6)(A)
or section 38(e)(2)(E)(i), the 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
institution 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 depository institution, the Corporation
may enforce any condition or agreement described in paragraph (1) or (2)
of subsection (a) imposed on or entered into with such 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 and subsections (c)
through (s) and subsection (u) of this section' and inserting `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 and subsections (c)
through (s) and subsection (u) of this section' and inserting `This subsection,
subsections (c) through (s) and subsection (u) of this section, and section
49 of this Act'.
SEC. 703. CROSS GUARANTEE AUTHORITY.
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'.
SEC. 704. GOLDEN PARACHUTE AUTHORITY AND NONBANK HOLDING COMPANIES.
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-affiliated
party is substantially responsible for--
`(i) the insolvency of the depository institution or covered company;
`(ii) the appointment of a conservator or receiver for the depository
institution; or
`(iii) the 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 subparagraph (A), by striking
`depository institution holding company' and inserting `covered company';
(5) in paragraph (3)(A), by striking `holding company' and inserting `covered
company';
(6) in paragraph (4)(A)--
(A) by striking `depository institution holding company' each place
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 `covered company';
(7) in paragraph (5)(A), by striking `depository institution holding company'
and inserting `covered company';
(8) in paragraph (5), by adding at the end the following:
`(D) COVERED COMPANY- The term `covered company' means any depository
institution holding company (including any company required to file
a report under section 4(f)(6) of the Bank Holding Company Act of 1956),
or any other company that controls an insured depository institution.';
and
(A) by striking `depository institution holding company' and inserting
`covered company,'; and
(B) by striking `or holding company' and inserting `or covered company'.
SEC. 705. AMENDMENTS RELATING TO CHANGE IN BANK CONTROL.
Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)) is
amended--
(1) in paragraph (1)(D)--
(A) by striking `is needed to investigate' and inserting `is needed--
(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 institution'.
SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD WITH DISCRETION
CONCERNING THE IMPUTATION OF CONTROL OF SHARES OF A COMPANY BY TRUSTEES.
Section 2(g)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(g)(2))
is amended by inserting 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'.
SEC. 707. INTERAGENCY DATA SHARING.
(a) Federal Banking Agencies- Section 7(a)(2) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(a)(2)) is amended by adding at the end the following:
`(C) DATA SHARING WITH OTHER AGENCIES AND PERSONS- In addition to reports
of examination, reports of condition, and other reports required to
be regularly provided to the Corporation (with respect to all insured
depository institutions, including a depository institution for which
the Corporation has been appointed conservator or receiver) or an appropriate
State bank supervisor (with respect to a State depository institution)
under subparagraph (A) or (B), a Federal banking agency may, in the
discretion of the agency, furnish any report of examination or other
confidential supervisory information concerning any depository institution
or other entity examined by such agency under authority of any Federal
law, to--
`(i) any other Federal or State agency or authority with supervisory
or regulatory authority over the depository institution or other entity;
`(ii) any officer, director, or receiver of such depository institution
or entity; and
`(iii) any other person that the Federal banking agency determines
to be appropriate.'.
(b) National Credit Union Administration- Section 202(a) of the Federal
Credit Union Act (12 U.S.C. 1782(a)) is amended by adding at the end the
following:
`(8) DATA SHARING WITH OTHER AGENCIES AND PERSONS- In addition to reports
of examination, reports of condition, and other reports required to be
regularly provided to the Board (with respect to all insured credit unions,
including a credit union for which the Corporation has been appointed
conservator or liquidating agent) or an appropriate State commission,
board, or authority having supervision of a State-chartered credit union,
the Board may, in the discretion of the Board, furnish any report of examination
or other confidential supervisory information concerning any credit union
or other entity examined by the Board under authority of any Federal law,
to--
`(A) any other Federal or State agency or authority with supervisory
or regulatory authority over the credit union or other entity;
`(B) any officer, director, or receiver of such credit union or entity;
and
`(C) any other person that the Board determines to be appropriate.'.
SEC. 708. CLARIFICATION OF EXTENT OF SUSPENSION, REMOVAL, AND PROHIBITION
AUTHORITY OF FEDERAL BANKING AGENCIES IN CASES OF CERTAIN CRIMES BY INSTITUTION-AFFILIATED
PARTIES.
(a) Insured Depository Institutions-
(1) IN GENERAL- Section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1818(g)(1)) is amended--
(A) in subparagraph (A)--
(i) by striking `is charged in any information, indictment, or complaint,
with the commission of or participation in' and inserting `is the
subject of any information, indictment, or complaint, involving the
commission of or participation in';
(ii) by striking `may pose a threat to the interests of the depository
institution's depositors or may threaten to impair public confidence
in the depository institution,' and insert `posed, poses, or may pose
a threat to the interests of the depositors of, or threatened, threatens,
or may threaten to impair public confidence in, any relevant depository
institution (as defined in subparagraph (E)),'; and
(iii) by striking `affairs of the depository institution' and inserting
`affairs of any depository institution';
(B) in subparagraph (B)(i), by striking `the depository institution'
and inserting `any depository institution that the subject of the notice
is affiliated with at the time the notice is issued';
(C) in subparagraph (C)(i)--
(i) by striking `may pose a threat to the interests of the depository
institution's depositors or may threaten to impair public confidence
in the depository institution,' and insert `posed, poses, or may pose
a threat to the interests of the depositors of, or threatened, threatens,
or may threaten to impair public confidence in, any relevant depository
institution (as defined in subparagraph (E)),'; and
(ii) by striking `affairs of the depository institution' and inserting
`affairs of any depository institution';
(D) in subparagraph (C)(ii), by striking `affairs of the depository
institution' and inserting `affairs of any depository institution';
(E) in subparagraph (D)(i), by striking `the depository institution'
and inserting `any depository institution that the subject of the order
is affiliated with at the time the order is issued'; and
(F) by adding at the end the following:
`(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 order 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-affiliated party at
any credit union at the time the order is considered or issued by
the Board; or
`(ii) whether the credit union at which the individual was an institution-affiliated
party at the time of the offense remains in existence at the time
the order is considered or issued by the Board.'.
(2) CLERICAL AMENDMENT- Section 206(i) of the Federal Credit Union Act
(12 U.S.C. 1786(i)) is amended by striking `(i)' at the beginning and
inserting the following:
`(i) Suspension, Removal, and Prohibition From Participation Orders in the
Case of Certain Criminal Offenses- '.
SEC. 709. PROTECTION OF CONFIDENTIAL INFORMATION RECEIVED BY FEDERAL BANKING
REGULATORS FROM FOREIGN BANKING SUPERVISORS.
Section 15 of the International Banking Act of 1978 (12 U.S.C. 3109) is
amended by adding at the end the following:
`(c) Confidential Information Received From Foreign Supervisors-
`(1) IN GENERAL- Except as provided in paragraph (3), a Federal banking
agency may not be compelled to disclose information received from 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 writing to such Federal banking agency that public disclosure of
the information would violate the laws applicable to that foreign regulatory
or supervisory authority; and
`(B) the relevant Federal banking agency obtained such information pursuant
to--
`(i) such procedures as the Federal banking agency may establish for
use in connection with the administration and enforcement of Federal
banking laws; or
`(ii) a memorandum of understanding or other similar arrangement between
the Federal banking agency and the foreign regulatory or supervisory
authority.
`(2) TREATMENT UNDER TITLE 5, UNITED STATES CODE- For purposes of section
552 of title 5, United States Code, this subsection shall be treated as
a statute described in subsection (b)(3)(B) of such section.
`(3) SAVINGS PROVISION- No provision of this section shall be construed
as--
`(A) authorizing any Federal banking agency to withhold any information
from any duly authorized committee of the House of Representatives or
the Senate; or
`(B) preventing any Federal banking agency from complying with an order
of a court of the United States in an action commenced by the United
States or such agency.
`(4) FEDERAL BANKING AGENCY DEFINED- For purposes of this subsection,
the term `Federal banking agency' means the Board, the Comptroller of
the Currency, the Federal Deposit Insurance Corporation, and the Director
of the Office of Thrift Supervision.'.
SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED INDIVIDUALS.
(a) Extension of Automatic Prohibition- Section 19 of the Federal Deposit
Insurance 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
organization organized and operated under section 25A of the Federal Reserve
Act or operating under section 25 of the Federal Reserve Act, as if such
bank holding company or organization were an insured depository institution,
except 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 loan 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 `Corporation'
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 bank holding company has been convicted of any criminal
offense involving dishonesty or a breach of trust, or a criminal violation
of section 1956, 1957, or 1960 of title 18 United States Code, or
has agreed to enter into a pretrial diversion or similar program in
connection with a prosecution for such an offense,'.
SEC. 711. COORDINATION OF STATE EXAMINATION AUTHORITY.
Section 10(h) of the Federal Deposit Insurance Act (12 U.S.C. 1820(h)) is
amended to read as follows:
`(h) Coordination of Examination Authority-
`(1) STATE BANK SUPERVISORS OF HOME AND HOST STATES-
`(A) HOME STATE OF BANK- The appropriate State bank supervisor of the
home State of an insured State bank has authority to examine and supervise
the bank.
`(B) HOST STATE BRANCHES- The State bank supervisor of the home State
of an insured State bank and any State bank supervisor of an appropriate
host State shall exercise its respective authority to supervise and
examine the branches of the bank in a host State in accordance with
the terms of any applicable cooperative agreement between the home State
bank supervisor and the State bank supervisor of the relevant host State.
`(C) SUPERVISORY FEES- Except as expressly provided in a cooperative
agreement between the State bank supervisors of the home State and any
host State of an insured State bank, only the State bank supervisor
of the home State of an insured State bank may levy or charge State
supervisory fees on the bank.
`(2) HOST STATE EXAMINATION-
`(A) IN GENERAL- With respect to a branch operated in a host State by
an out-of-State insured State bank that resulted from an interstate
merger transaction approved under section 44, or that was established
in such State pursuant to section 5155(g) of the Revised Statutes of
the United States, the third undesignated paragraph of section 9 of
the Federal Reserve Act or section 18(d)(4) of this Act, the appropriate
State bank supervisor of such host State may--
`(i) with written notice to the State bank supervisor of the bank's
home State and subject to the terms of any applicable cooperative
agreement with the State bank supervisor of such home State, examine
such branch for the purpose of determining compliance with host State
laws that are applicable pursuant to section 24(j), including those
that govern community reinvestment, fair lending, and consumer protection;
and
`(ii) if expressly permitted under and subject to the terms of a cooperative
agreement with the State bank supervisor of the bank's home State
or if such out-of-State insured State bank has been determined to
be in a troubled condition by either the State bank supervisor of
the bank's home State or the bank's appropriate Federal banking agency,
participate in the examination of the bank by the State bank supervisor
of the bank's home State to ascertain that the activities of the branch
in such host State are not conducted in an unsafe or unsound manner.
`(B) NOTICE OF DETERMINATION-
`(i) IN GENERAL- The State bank supervisor of the home State of an
insured State bank 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 determination.
`(3) HOST STATE ENFORCEMENT- If the State bank supervisor of a host State
determines 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 consumer protection, the State bank supervisor of the host
State or, to the extent authorized by the law of the host State, a host
State law enforcement officer may, with written notice to the State bank
supervisor of the bank's home State and subject to the terms of any applicable
cooperative agreement with the State bank supervisor of the bank's home
State, undertake such enforcement actions and proceedings as would be
permitted under the law of the host State as if the branch were a bank
chartered by that host State.
`(4) COOPERATIVE AGREEMENT-
`(A) IN GENERAL- The State bank supervisors from 2 or more States may
enter into cooperative agreements to facilitate State regulatory supervision
of State banks, including cooperative agreements relating to the coordination
of examinations and joint participation in examinations.
`(B) DEFINITION- For purposes of this subsection, the term `cooperative
agreement' 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 this subsection relating to such cooperative agreements shall be
construed as limiting in any way the authority of home State and host
State law enforcement officers, regulatory supervisors, or other officials
that have not signed such cooperative agreements to enforce host State
laws that are applicable to a branch of an out-of-State insured State
bank located in the host State pursuant to section 24(j).
`(5) FEDERAL REGULATORY AUTHORITY- No provision of this subsection shall
be construed as limiting in any way the authority of any Federal banking
agency.
`(6) STATE TAXATION AUTHORITY NOT AFFECTED- No provision of this subsection
shall be construed as affecting the authority of any State or political
subdivision of any State to adopt, apply, or administer any tax or method
of taxation to any bank, bank holding company, or foreign bank, or any
affiliate of any bank, bank holding company, or foreign bank, to the extent
that such tax or tax method is otherwise permissible by or under the Constitution
of the United States or other Federal law.
`(7) DEFINITIONS- For purpose of this section, the following definitions
shall apply:
`(A) HOST STATE, HOME STATE, OUT-OF-STATE BANK- The terms `host State',
`home State', and `out-of-State bank' have the same meanings as in section
44(g).
`(B) STATE SUPERVISORY FEES- The term `State supervisory fees' means
assessments, examination fees, branch fees, license fees, and all other
fees that are levied or charged by a State bank supervisor directly
upon an insured State bank or upon branches of an insured State bank.
`(C) TROUBLED CONDITION- Solely for purposes of 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 examination, 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 bank's home State to vacate, revoke, or terminate the charter
of the bank, or to liquidate the bank, or to appoint a receiver for
the bank.
`(D) FINAL DETERMINATION- For purposes of paragraph (2)(B), the term
`final determination' means the transmittal of a report of examination
to the bank or transmittal of official notice of proceedings to the
bank.'.
SEC. 712. DEPUTY DIRECTOR; SUCCESSION AUTHORITY FOR DIRECTOR OF THE OFFICE
OF THRIFT SUPERVISION.
(a) Establishment of Position of Deputy Director- Section 3(c)(5) of the
Home Owners' Loan Act (12 U.S.C. 1462a(c)(5)) is amended to read as follows:
`(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 appointee as the First Deputy Director.
`(C) DUTIES- Each Deputy Director appointed under this paragraph shall
take an oath of office and perform such duties as the Director shall
direct.
`(D) COMPENSATION AND BENEFITS- The Director shall fix the compensation
and benefits for each Deputy Director in accordance with this Act.'.
(b) Service of Deputy Director as Acting Director- Section 3(c)(3) of the
Home Owners' Loan Act (12 U.S.C. 1462a(c)(3)) is amended--
(1) by striking `vacancy- A vacancy in the position of Director' and inserting
`vacancy-
`(A) IN GENERAL- A vacancy in the position of Director'; and
(2) by adding at the end the following:
`(i) IN GENERAL- In the event of a vacancy in the position of Director
or during the absence or disability of the Director, the Deputy Director
shall serve as Acting Director.
`(ii) SUCCESSION IN CASE OF 2 OR MORE DEPUTY DIRECTORS- If there are
2 or more Deputy Directors serving at the time a vacancy in the position
of Director occurs or the absence or disability of the Director commences,
the First Deputy Director shall serve as Acting Director under clause
(i) followed by such other Deputy Directors under any order of succession
the Director may establish.
`(iii) AUTHORITY OF ACTING DIRECTOR- Any Deputy Director, while serving
as Acting Director under this subparagraph, shall be vested with all
authority, duties, and privileges of the Director under this Act and
any other provision of Federal law.'.
SEC. 713. OFFICE OF THRIFT SUPERVISION REPRESENTATION ON BASEL COMMITTEE
ON BANKING SUPERVISION.
(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
Office of Thrift Supervision shall be given equal representation with the
Board of Governors of the Federal Reserve System, the Office of the Comptroller
of the 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 Supervision
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 term is defined in section 3(c)(2)'.
SEC. 714. FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.
(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 end 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
Institutions 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 chairperson from among the members serving on the committee.'.
SEC. 715. TECHNICAL AMENDMENTS RELATING TO INSURED INSTITUTIONS.
(a) Technical Amendment to the Federal Deposit Insurance Act- Section 8(i)(3)
of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(3)) is amended by
inserting `or order' after `notice' each place 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 appears.
SEC. 716. CLARIFICATION OF ENFORCEMENT AUTHORITY.
(a) Actions on Applications, Notices, and Other Requests; 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 depository institution' and inserting `any action
on any application, notice, or request 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 depository 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
206 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 union' and inserting
`any action on any application, notice, or other request by the 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 grant 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'.
SEC. 717. FEDERAL BANKING AGENCY AUTHORITY TO ENFORCE DEPOSIT INSURANCE
CONDITIONS.
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 inserting `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 upon 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'.
SEC. 718. RECEIVER OR CONSERVATOR CONSENT REQUIREMENT.
(a) Insured Depository Institutions- Section 11(e)(13) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(e)(13)) is amended by adding at the end the
following:
`(C) CONSENT REQUIREMENT-
`(i) IN GENERAL- Except as otherwise provided by this section 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
appointment 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 director 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 Improvement Act of 1991 (12 U.S.C. 4401
et seq.), or shall be construed as permitting the conservator or receiver
to fail to comply with otherwise enforceable provisions of such contract.
`(iii) RULE OF CONSTRUCTION- Nothing in this subparagraph shall be
construed to limit or otherwise affect the applicability of title
11, United States Code.'.
(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 consent of the conservator or liquidating agent,
as appropriate, during the 45-day period beginning on the date of
the appointment of the conservator, or during the 90-day period beginning
on the date of the appointment of the liquidating agent, as applicable.
`(ii) CERTAIN EXCEPTIONS- No provision of this subparagraph shall
apply to a director 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 limit or otherwise affect the applicability of title
11, United States Code.'.
SEC. 719. ACQUISITION OF FICO SCORES.
Section 604(a) of the Fair Credit Reporting Act (15 U.S.C. 1681b(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 of a failed or failing insured depository institution or
insured credit union, as applicable.'.
SEC. 720. ELIMINATION OF CRIMINAL INDICTMENTS AGAINST RECEIVERSHIPS.
(a) Insured Depository Institutions- Section 15(b) of the Federal Deposit
Insurance 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 all prosecution by the United States or any State, county, municipality,
or local 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, county, 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.'.
SEC. 721. RESOLUTION OF DEPOSIT INSURANCE DISPUTES.
(a) Insured Depository Institutions- Section 11(f) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(f)) is amended by striking paragraphs (3)
through (5) and inserting the following:
`(3) RESOLUTION OF DISPUTES- A determination by the Corporation regarding
any claim for insurance coverage shall be treated as a final determination
for purposes of this section. In its discretion, the Corporation 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 agency action reviewable in accordance with chapter 7 of title 5,
United States Code, 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 United States district court not later than
60 days after the date on which such determination is issued.'.
(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
inserting 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 title 5, United States Code, by the United
States district court for the Federal judicial district where the principal
place of business of the credit union is located.
`(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 United States district court not later than 60 days
after the date on which such determination is issued.'.
SEC. 722. RECORDKEEPING.
(a) Insured Depository Institutions- Section 11(d)(15)(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, without 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 Board 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 credit 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).'.
SEC. 723. PRESERVATION OF RECORDS.
(a) Insured Depository Institutions- Section 10(f) of the Federal Deposit
Insurance Act (12 U.S.C. 1820(f)) is amended to read as follows:
`(f) Preservation of Agency Records-
`(1) IN GENERAL- A Federal banking agency may cause any and all records,
papers, or documents kept by the agency or in the possession or custody
of the agency to be--
`(A) photographed or microphotographed or otherwise reproduced upon
film; or
`(B) preserved in any electronic medium or format which is capable of--
`(i) being read or scanned by computer; and
`(ii) being reproduced from such electronic medium or format by printing
any other form of reproduction of electronically stored data.
`(2) TREATMENT AS ORIGINAL RECORDS- Any photographs, microphotographs,
or photographic film or copies thereof described in paragraph (1)(A) or
reproduction of electronically stored data described in paragraph (1)(B)
shall be deemed to be an original record for all purposes, including introduction
in evidence in all State and Federal courts or administrative agencies,
and shall be admissible to prove any act, transaction, occurrence, or
event therein recorded.
`(3) AUTHORITY OF THE FEDERAL BANKING AGENCIES- Any photographs, microphotographs,
or photographic film or copies thereof described in paragraph (1)(A) or
reproduction of electronically stored data described in paragraph (1)(B)
shall be preserved in such manner as the Federal banking agency shall
prescribe, and the original records, papers, or documents may be destroyed
or otherwise disposed of as the Federal banking agency may direct.'.
(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 kept 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 other 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 described in subparagraph
(A)(ii) shall be preserved in such manner as the Administration shall
prescribe, and the original records, papers, or documents may be destroyed
or otherwise disposed of as the Administration may direct.'.
SEC. 724. TECHNICAL AMENDMENTS TO INFORMATION SHARING PROVISION IN THE
FEDERAL DEPOSIT INSURANCE ACT.
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 capacity,' after `A covered
agency'; and
(2) in paragraph (2)(A)--
(A) in clause (i), by striking `appropriate';
(B) by striking clause (ii); and
(C) by redesignating clauses (iii) through (vi) as clauses (ii) through
(v), respectively.
SEC. 725. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO BANKS OPERATING
UNDER THE CODE OF LAW FOR THE DISTRICT OF COLUMBIA.
(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 State, operating
under the Code of Law for the District of Columbia, or'.
(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 inserting `means any national';
and
(2) by striking `, and (2) any bank or trust company located in the District
of Columbia and operating under the supervision of the Comptroller of
the Currency'.
(c) Depository Institution Deregulation and Monetary Control Act of 1980-
Part C of title VII of the Depository Institution Deregulation and Monetary
Control Act 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 District of Columbia'; and
(2) in paragraph (2) of section 732 (12 U.S.C. 216a(2)), by striking `or
closed banks in the District of Columbia'.
(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
Bank Consolidation and Merger Act (12 U.S.C. 215b(1)) is amended by striking
`(except a national banking association located in the District of Columbia)'.
(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) of the Federal Trade
Commission Act (15 U.S.C. 57a(f)(2)) is amended--
(1) in subparagraph (A), by striking `, banks operating under the code
of law for the District of Columbia,'; and
(2) in subparagraph (B), by striking `and banks operating under the code
of law for the District of Columbia'.
SEC. 726. TECHNICAL CORRECTIONS TO THE FEDERAL CREDIT UNION ACT.
The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended as follows:
(1) In section 101(3), strike `and' after the semicolon.
(2) In section 101(5), strike the terms `account account' and `account
accounts' each place any such term appears and insert `account'.
(3) In section 107(5)(E), strike the period at the end 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 Savings and Loan Insurance
Corporation or'.
(6) In section 107(7)(E), strike `the Federal Home Loan 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, United States Code,'.
(11) In section 201(b)(5), strike `section 116 of'.
(12) In section 202(h)(3), strike `section 207(c)(1)' and insert `section
207(k)(1)'.
(13) In section 204(b), strike `such others powers' and insert `such other
powers'.
(14) In section 206(e)(3)(D), strike `and' after the semicolon at the
end.
(15) In section 206(f)(1), strike `subsection (e)(3)(B)' and insert `subsection
(e)(3)'.
(16) In section 206(g)(7)(D), strike `and subsection (1)'.
(17) In section 206(t)(2)(B), insert `regulations' after `as defined in'.
(18) In section 206(t)(2)(C), strike `material affect' and insert `material
effect'.
(19) In section 206(t)(4)(A)(ii)(II), strike `or' after the semicolon
at the end.
(20) In section 206A(a)(2)(A), strike `regulator agency' and insert `regulatory
agency'.
(21) In section 207(c)(5)(B)(i)(I), insert `and' after the semicolon at
the end.
(22) In the heading for subparagraph (A) of section 207(d)(3), strike
`TO' and insert `WITH'.
(23) In section 207(f)(3)(A), strike `category or claimants' and insert
`category of claimants'.
(24) In section 209(a)(8), strike the period at the end and insert a semicolon.
(25) In section 216(n), insert `any action' before `that is required'.
(26) In section 304(b)(3), strike `the affairs or such credit union' and
insert `the affairs of such credit union'.
(27) In section 310, strike `section 102(e)' and insert `section 102(d)'.
SEC. 727. REPEAL OF OBSOLETE PROVISIONS OF THE BANK HOLDING COMPANY ACT
OF 1956.
(a) In General- Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C.
1841) is amended--
(1) in subsection (c)(2), by striking subparagraphs (I) and (J); and
(2) by striking subsection (m) and inserting the following:
(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)'.
SEC. 728. DEVELOPMENT OF MODEL PRIVACY FORM.
Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803), as amended by
section 609, is amended by adding at the end the following:
`(1) IN GENERAL- The agencies referred to in section 504(a)(1) shall jointly
develop 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.'.
TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCEMENT PROGRAMS.
(a) In General- The Fair Debt Collection Practices Act (15 U.S.C. 1692 et
seq.) is amended--
(1) by redesignating section 818 as section 819; and
(2) by inserting after section 817 the following:
`Sec. 818. Exception for certain bad check enforcement programs operated
by private entities
`(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 described 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 State or district attorney and with respect to alleged bad check
violations that do not involve a check described in subsection (b),
a pretrial diversion program 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 referred 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 district 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 that contact with the alleged offender for
purposes of participation in the program is appropriate; and
`(II) the alleged offender has failed to pay the bad check after
demand for payment, pursuant to State law, is made for payment of
the check amount;
`(v) includes as part of an initial written communication with an
alleged offender a clear and conspicuous statement that--
`(I) the alleged offender may dispute the validity of any alleged
bad check violation;
`(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 attorney 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 subsection, before further restitution
efforts are pursued, the district attorney or an employee of the
district attorney authorized to make such a determination makes
a determination that there is probable cause to believe that a crime
has been 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 check involves, or is subsequently found to involve--
`(1) a postdated check presented in connection with a payday loan, or
other similar transaction, where the payee of the check knew that the
issuer had insufficient funds at the time the check was made, drawn, or
delivered;
`(2) a stop payment order where the issuer acted in good faith and with
reasonable cause in stopping payment on the check;
`(3) a check dishonored because of an adjustment to the issuer's account
by the financial institution holding such account without providing notice
to the person at the time the check was made, drawn, or delivered;
`(4) a check for partial payment of a debt where the payee had previously
accepted partial payment for such debt;
`(5) a check issued by a person who was not competent, or was not of legal
age, to enter into a legal contractual obligation at the time the check
was made, drawn, or delivered; or
`(6) a check issued to pay an obligation arising from a transaction that
was illegal in the jurisdiction of the State or district attorney at the
time the check was made, drawn, or delivered.
`(c) Definitions- For purposes of this section, the following definitions
shall apply:
`(1) STATE OR DISTRICT ATTORNEY- The term `State or district attorney'
means the chief elected or appointed prosecuting attorney in a district,
county (as defined in section 2 of title 1, United States Code), municipality,
or comparable jurisdiction, including State attorneys general who act
as chief elected or appointed prosecuting attorneys in a district, county
(as so defined), municipality or comparable jurisdiction, who may be referred
to by a variety of titles such as district attorneys, prosecuting attorneys,
commonwealth's attorneys, solicitors, county attorneys, and state's attorneys,
and who are responsible for the prosecution of State crimes and violations
of jurisdiction-specific local ordinances.
`(2) CHECK- The term `check' has the same meaning as in section 3(6) of
the Check Clearing for the 21st Century Act.
`(3) BAD CHECK 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.'.
TITLE IX--CASH MANAGEMENT MODERNIZATION
SEC. 901. COLLATERAL MODERNIZATION.
(a) In General- Section 9301(2) of title 31, United States Code, is amended
to read as follows:
`(2) `eligible obligation' means any security designated as acceptable
in lieu of 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 read 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 `Government 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 that term appears and
inserting `eligible obligation'.
TITLE X--STUDIES AND REPORTS
SEC. 1001. STUDY AND REPORT BY THE COMPTROLLER GENERAL ON THE CURRENCY
TRANSACTION REPORT FILING SYSTEM.
(a) In General- The Comptroller General of the United States shall conduct
a study on the volume of currency transaction reports filed with the Secretary
of the 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--
(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 period 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 during 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
depository 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
depository institutions in the United States, including the number of
such currency transaction reports involving companies listed on the
New York Stock Exchange 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 used
by all depository institutions in the United States;
(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 institutions
to reduce their currency transaction reports reporting burden by making
use of the exemption system, including considerations of cost, especially
in the case of small depository institutions;
(4) the extent to which bank examination difficulties have limited the
use of the exemption system, especially with respect to--
(A) the exemption of privately-held companies permitted 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 inhibits 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
volume of currency transaction reports unnecessarily filed; and
(6) the usefulness of currency transaction reports filed to law enforcement
agencies, taking into account--
(A) advances in information technology;
(B) the impact, including possible loss of investigative data, that
various changes in the exemption system would have on the usefulness
of such currency transaction reports; and
(C) changes that could be made to the exemption system 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 Enforcement
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,
include a discussion of the views of a representative sample of Federal,
State, and local law enforcement and regulatory officials and officials
of depository institutions of all sizes.
(g) Recommendations- The study required under subsection (a) shall, if appropriate,
include recommendations for changes to the exemption system that would reflect
a reduction in unnecessary cost to depository institutions, assuming reasonably
full implementation of such exemption system, without reducing the usefulness
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
section, the Comptroller General shall submit a report on the study required
under subsection (a) to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of Representatives.
SEC. 1002. STUDY AND REPORT ON INSTITUTION DIVERSITY AND CONSOLIDATION.
(a) Study- The Comptroller General of the United States shall conduct a
study regarding--
(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 effectiveness
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 banking 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 that the cost
of compliance may pose on smaller institutions, given the percentage of
personnel that the institution must dedicate solely to compliance.
(b) Considerations- In conducting the study under subsection (a), the Comptroller
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 United States shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee
on Financial Services of the House of Representatives on the results of
the study required by this section.
Passed the Senate May 25, 2006.
Attest:
Secretary.
109th CONGRESS
2d Session
S. 2856
AN ACT
To provide regulatory relief and improve productivity for insured depository
institutions, and for other purposes.
END
