102d CONGRESS
1st Session
S. 543
AMENDMENTS
S 543 EAH
In the House of Representatives, U. S.,
November 23, 1991.
Resolved, That the bill from the Senate (S. 543) entitled `An Act to
reform Federal deposit insurance, protect the deposit insurance funds,
recapitalize the Bank Insurance Fund, improve supervision and regulation
of insured depository institutions, and for other purposes', do pass with
the following
AMENDMENTS:
Strike out all after the enacting clause and insert:

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(a)  SHORT TITLE- This Act may be cited as the `Federal Deposit Insurance
Corporation Improvement Act of 1991'.
(b) Table of Contents-

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TITLE I

-SAFETY AND SOUNDNESS

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interstate banking.
Subtitle D--Prompt Regulatory Action

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institutions.
Subtitle E--Least-Cost Resolution

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and repudiating shareholders claims.
Subtitle F--Federal Insurance for State Chartered Depository Institutions

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savings associations, and credit unions.
Subtitle G--Technical Corrections

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TITLE II

-REGULATORY IMPROVEMENT

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of 1956.
Subtitle B--Customer and Consumer Provisions

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TITLE III

-FEDERAL DEPOSIT INSURANCE REFORM

Subtitle C--Demonstration Project and Studies

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Subtitle A--Payment System Risk Reduction

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Subtitle B--Right to Financial Privacy Act of 1978

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TITLE IV

-MISCELLANEOUS PROVISIONS

Subtitle C--Final Settlement Payment Procedure

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Subtitle D--Miscellaneous Committees, Studies, and Reports

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Subtitle E--Utilization of Private Sector

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Subtitle F--Emergency Assistance for Rhode Island

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Subtitle G--Qualified Thrift Lender Test Improvements

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Subtitle H--Prohibition on Entering Secrecy Agreements and Protective Orders

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orders.
Subtitle I--Establishment of Capital Standard Requirement

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Subtitle J--Bank and Thrift Employee Provisions

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Subtitle L--Sense of the House of Representatives on the Credit Crisis

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TITLE V

-DEPOSITORY INSTITUTION CONVERSIONS

control banks and are not treated as holding companies.
Subtitle A--Deposit Insurance Funds

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Section 14(a) of the Federal Deposit Insurance Act (12 U.S.C. 1824(a))
is amended by striking `$5,000,000,000' and inserting `$30,000,000,000'.

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(a) IN GENERAL- Section 15(c) of the Federal Deposit Insurance Act (12
U.S.C. 1825(c)) is amended by striking paragraphs (5) and (6) and inserting
the following new paragraphs:
`(5) MAXIMUM AMOUNT LIMITATION ON OUTSTANDING OBLIGATIONS- Notwithstanding
any other provisions of this Act, the aggregate amount of obligations of
the Bank Insurance Fund or Savings Association Insurance Fund, respectively,
outstanding at any time may not exceed the sum of--
`(A) the amount of cash or the equivalent of cash held by the Bank Insurance
Fund or Savings Association Insurance Fund, respectively;
`(B) the amount which is equal to 90 percent of the Corporation's estimate
of the fair market value of assets held by the Bank Insurance Fund or
the Savings Association Insurance Fund, respectively, other than assets
described in subparagraph (A); and
`(C) the total of the amounts authorized to be borrowed from the Secretary
of the Treasury pursuant to section 14(a).
`(6) OBLIGATION DEFINED- For purposes of paragraph (5), the term `obligation'
includes--
`(A) any guarantee issued by the Corporation;
`(B) any amount borrowed pursuant to section 14; and
`(C) any other obligation for which the Corporation has a direct or
contingent liability to pay any amount.'.
(b) GAO Reports-
(1) QUARTERLY REPORTING- The Comptroller General of the United States shall
submit a report each calendar quarter on the Federal Deposit Insurance
Corporation's compliance with section 15(c)(5) of the Federal Deposit
Insurance Act for the preceding quarter to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate.
(2) ANALYSES TO BE INCLUDED- Each report submitted under paragraph (1)
shall include--
(A) an analysis of the performance of the Federal Deposit Insurance
Corporation in meeting any repayment schedule under section 14(c) of the
Federal Deposit Insurance Act (as added by section 103 of this Act); and
(B) an analysis of the actual recovery on asset sales compared to the
estimated fair market value of the assets as determined for the purposes
of section 15(c)(5)(B) of such Act.
(c) TECHNICAL AND CONFORMING AMENDMENT- Section 15(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1825(c)) is amended by striking paragraph (7).

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(a) IN GENERAL- Section 14 of the Federal Deposit Insurance Act (12
U.S.C. 1824) is amended by adding at the end the following new subsection:
`(c) Repayment Schedules Required for any Borrowing-
`(1) IN GENERAL- No amount may be provided by the Secretary of the Treasury
to the Corporation under subsection (a) unless an agreement is in effect
between the Secretary and the Corporation which--
`(A) provides a schedule for the repayment of the outstanding amount of
any borrowing under such subsection; and
`(B) demonstrates that income to the Corporation from assessments under
this Act will be sufficient to amortize the outstanding balance within the
period established in the repayment schedule and pay the interest accruing
on such balance.
`(2) CONSULTATION WITH AND REPORT TO CONGRESS- The Secretary of the Treasury
and the Corporation shall--
`(A) consult with the Committee on Banking, Finance and Urban Affairs
of the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate on the terms of any repayment schedule
agreement described in paragraph (1) relating to repayment, including
terms relating to any emergency special assessment under section 7(b)(7); and
`(B) submit a copy of each repayment schedule agreement entered into under
paragraph (1) to the Committee on Banking, Finance and Urban Affairs of
the House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate before the end of the 30-day period beginning
on the date any amount is provided by the Secretary of the Treasury to
the Corporation under subsection (a).'.
(b) EMERGENCY SPECIAL ASSESSMENTS- Section 7(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)) is amended by redesignating paragraphs
(7), (8), and (9) as paragraphs (8), (9), and (10), respectively, and by
inserting after paragraph (6) the following new paragraph:
`(7) EMERGENCY SPECIAL ASSESSMENTS- In addition to the assessments
imposed on insured depository institutions under other provisions of this
subsection, the Corporation may impose 1 or more special assessments on
insured depository institutions in an amount determined by the Corporation
if the amount of any such assessment--
`(A) is necessary--
`(i) to provide sufficient assessment income to repay amounts borrowed from
the Secretary of the Treasury under section 14(a) in accordance with the
repayment schedule in effect under section 14(c) during the period with
respect to which such assessment is imposed;
`(ii) to provide sufficient assessment income to repay obligations issued to
and other amounts borrowed from Bank Insurance Fund members under section
14(d); or
`(iii) for any other purpose the Corporation may deem necessary; and
`(B) is allocated between Bank Insurance Fund members and Savings Association
Insurance Fund members in amounts which reflect the degree to which the
proceeds of the amounts borrowed are to be used for the benefit of the
respective insurance funds.'.

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Section 14 of the Federal Deposit Insurance Act (12 U.S.C. 1824) is amended
by inserting after subsection (c) (as added by section 103 of this subtitle)
the following new subsection:
`(d) Borrowing for BIF From BIF Members-
`(1) BORROWING AUTHORITY- The Corporation may issue obligations to Bank
Insurance Fund members, and may borrow from Bank Insurance Fund members
and give security for any amount borrowed, and may pay interest on (and
any redemption premium with respect to) any such obligation or amount to
the extent--
`(A) the proceeds of any such obligation or amount are used by the
Corporation solely for purposes of carrying out the Corporation's functions
with respect to the Bank Insurance Fund; and
`(B) the terms of the obligation or instrument limit the liability of the
Corporation or the Bank Insurance Fund for the payment of interest and
the repayment of principal to the amount which is equal to the amount of
assessment income received by the Fund from assessments under section 7.
`(2) Limitations on borrowing-
`(A) APPLICABILITY OF PUBLIC DEBT LIMIT- For purposes of the public debt
limit established in section 3101(b) of title 31, United States Code, any
obligation issued, or amount borrowed, by the Corporation under paragraph
(1) shall be considered to be an obligation to which such limit applies.
`(B) APPLICABILITY OF FDIC BORROWING LIMIT- For purposes of the dollar amount
limitation established in section 14(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1824(a)), any obligation issued, or amount borrowed, by
the Corporation under paragraph (1) shall be considered to be an amount
borrowed from the Treasury under such section.
`(C) INTEREST RATE LIMIT- The rate of interest payable in connection with
any obligation issued, or amount borrowed, by the Corporation under paragraph
(1) shall not exceed an amount determined by the Secretary of the Treasury,
taking into consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities.
`(D) OBLIGATIONS TO BE HELD ONLY BY BIF MEMBERS- The terms of any obligation
issued by the Corporation under paragraph (1) shall provide that the
obligation will be valid only if held by a Bank Insurance Fund Member.
`(3) LIABILITY OF BIF- Any obligation issued or amount borrowed under
paragraph (1) shall be a liability of the Bank Insurance Fund.
`(4) TERMS AND CONDITIONS- Subject to paragraphs (1) and (2), the Corporation
shall establish the terms and conditions for obligations issued or amounts
borrowed under paragraph (1), including interest rates and terms to maturity.
`(4) Investment by bif members-
`(A) AUTHORITY TO INVEST- Subject to subparagraph (B) and notwithstanding any
other provision of Federal law or the law of any State, any Bank Insurance
Fund member may purchase and hold for investment any obligation issued
by the Corporation under paragraph (1) without limitation, other than any
limitation the appropriate Federal banking agency may impose specifically
with respect to such obligations.
`(B) INVESTMENT ONLY FROM CAPITAL AND RETAINED EARNINGS- Any Bank Insurance
Fund member may purchase obligations or make loans to the Corporation
under paragraph (1) only to the extent the purchase money or the money
loaned is derived from the member's capital or retained earnings.
`(5) ACCOUNTING TREATMENT- In accounting for any investment in an obligation
purchased from, or any loan made to, the Corporation for purposes of
determining compliance with any capital standard and preparing any report
required pursuant to section 7(a), the amount of such investment or loan
shall be treated as an asset.'.
Subtitle B--Supervisory Reforms

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(a) Annual Examinations-
(1) IN GENERAL- Section 10 of the Federal Deposit Insurance Act (12
U.S.C. 1820) is amended by inserting after subsection (c) the following
new subsection:
`(d) ANNUAL ON-SITE EXAMINATIONS OF ALL INSURED DEPOSITORY INSTITUTIONS
REQUIRED-
`(1) IN GENERAL- Each insured depository institution (other than an
institution for which a conservator or receiver has been appointed) shall
be examined at least once during each 12-month period (beginning on the
date on which the most recent examination of such institution ended) by
the appropriate Federal banking agency in an on-site examination unless
the institution has been examined by the Corporation during such period
in an on-site examination.
`(2) ACCEPTANCE OF STATE ON-SITE EXAMINATIONS- Notwithstanding paragraph
(1), the appropriate Federal banking agency or the Corporation may accept
an examination report on any insured depository institution which is based
on an on-site examination by the appropriate State bank supervisor.'.
(2) EFFECTIVE DATE- Section 10(d) of the Federal Deposit Insurance Act
(as added by paragraph (1) of this subsection) shall take effect at the
end of the 1-year period beginning on the date of the enactment of this Act.
(3) TRANSITION RULE- During the period beginning after the end of the
period described in paragraph (2) and ending on December 31, 1993, section
10(d) of the Federal Deposit Insurance Act shall be applied by substituting
`18-month' for `12-month' with respect to any insured depository institution
other than--
(A) an institution which received a composite CAMEL rating of 3, 4, or
5 under the Uniform Financial Institutions Rating System (or a comparable
rating under an equivalent rating system) during the most recent examination
of such institution; or
(B) an institution for which a notice or application has been received by
the appropriate Federal banking agency under section 7(j) or 18(c) of the
Federal Deposit Insurance Act during the 12-month period beginning on the
date on which the most recent examination ended.
(b) EXAMINATION IMPROVEMENT PROGRAM-
(1) IN GENERAL- The appropriate Federal banking agencies, acting through the
Federal Financial Institutions Examination Council, shall each establish
a comparable examination improvement program which meets the requirements
of paragraph (2).
(2) REQUIREMENTS- An examination improvement program meets the requirements
of this paragraph if, under the program, the agency is required--
(A) to periodically review the organization and training of the staff of the
agency who are responsible for conducting examinations of insured depository
institutions and to make such improvements as the agency determines to be
appropriate to ensure frequent, objective, and thorough examinations of
such institutions; and
(B) to increase the number of examiners, supervisors, and other individuals
employed by the agency in connection with conducting or supervising
examinations of insured depository institutions to the extent necessary to
ensure frequent, objective, and thorough examinations of such institutions.
(c) DEFINITION RELATING TO STATE BANK SUPERVISORS-
(1) IN GENERAL- Section 3(r) of the Federal Deposit Insurance Act (12
U.S.C. 1813(r)) is amended to read as follows:
`(r) STATE BANK SUPERVISOR-
`(1) IN GENERAL- The term `State bank supervisor' means any officer, agency,
or other entity of any State which has primary regulatory authority over
State banks or State savings associations in such State.
`(2) INTERSTATE APPLICATION- The State bank supervisors of more than
1 State may be the appropriate State bank supervisor for any insured
depository institution.'.
(2) TECHNICAL AND CONFORMING AMENDMENT- Section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(s)) is amended to read as follows:
`(s) DEFINITIONS RELATING TO FOREIGN BANKS AND BRANCHES-
`(1) FOREIGN BANK- The term `foreign bank' has the meaning given to such
term by section 1(b)(7) of the International Banking Act of 1978.
`(2) FEDERAL BRANCH- The term `Federal branch' has the meaning given to
such term by section 1(b)(6) of the International Banking Act of 1978.
`(3) INSURED BRANCH- The term `insured branch' means any branch (as defined
in section 1(b)(3) of the International Banking Act of 1978) of a foreign
bank any deposits in which are insured pursuant to this Act.'.

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(a) IN GENERAL- The Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.) is amended by adding at the end the following new section:
`SEC. 36. EARLY IDENTIFICATION OF NEEDED IMPROVEMENTS IN FINANCIAL MANAGEMENT.
`(a) ANNUAL REPORT ON FINANCIAL CONDITION AND MANAGEMENT-
`(1) REPORT REQUIRED- Each insured depository institution shall submit
an annual report to the Corporation, the appropriate Federal banking
agency, and any appropriate State bank supervisor (including any State
bank supervisor of a host State).
`(2) CONTENTS OF REPORT- Any annual report required under paragraph (1)
shall contain--
`(A) the information required to be provided by--
`(i) the institution's management under subsection (b); and
`(ii) an independent public accountant under subsections (c) and (d); and
`(B) such other information as the Corporation and the appropriate Federal
banking agency may determine to be necessary to assess the financial
condition and management of the institution.
`(3) PUBLIC AVAILABILITY- Any annual report required under paragraph (1)
shall be available for public inspection.
`(b) MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTS AND INTERNAL
CONTROLS- Each insured depository institution shall prepare--
`(1) annual financial statements in accordance with generally accepted
accounting principles and such other disclosure requirements as the
Corporation and the appropriate Federal banking agency may prescribe; and
`(2) a report signed by the chief executive officer and the chief accounting
or financial officer of the institution which contains--
`(A) a statement of the management's responsibilities for--
`(i) preparing financial statements;
`(ii) establishing and maintaining an adequate internal control structure
and procedures for financial reporting; and
`(iii) complying with the laws and regulations relating to safety and
soundness which are designated by the Corporation or the appropriate
Federal banking agency; and
`(B) an assessment, as of the end of the institution's most recent fiscal
year, of--
`(i) the effectiveness of such internal control structure and procedures; and
`(ii) the institution's compliance with the laws and regulations relating
to safety and soundness which are designated by the Corporation and the
appropriate Federal banking agency.
`(c) INTERNAL CONTROL EVALUATION AND REPORTING REQUIREMENTS FOR INDEPENDENT
PUBLIC ACCOUNTANTS-
`(1) IN GENERAL- With respect to any internal control report required by
subsection (b)(2) of any institution, the institution's independent public
accountant shall attest to, and report separately on, the assertions of
the institution's management contained in such report.
`(2) ATTESTATION REQUIREMENTS- Any attestation pursuant to paragraph
(1) shall be made in accordance with generally accepted standards for
attestation engagements.
`(d) ANNUAL INDEPENDENT AUDITS OF FINANCIAL STATEMENTS-
`(1) AUDITS REQUIRED- The Corporation, in consultation with the appropriate
Federal banking agencies, shall prescribe regulations requiring that each
insured depository institution shall have an annual independent audit made
of the institution's financial statements by an independent public accountant
in accordance with generally accepted auditing standards and section 37.
`(2) SCOPE OF AUDIT- In connection with any audit under this subsection,
the independent public accountant shall determine and report whether the
financial statements of the institution--
`(A) are presented fairly in accordance with generally accepted accounting
principles; and
`(B) comply with such other disclosure requirements as the Corporation
and the appropriate Federal banking agency may prescribe.
`(3) REQUIREMENTS FOR INSURED SUBSIDIARIES OF HOLDING COMPANIES- The
requirements for an independent audit under subsection (d) may be satisfied
for insured depository institutions that are subsidiaries of a holding
company by an independent audit of the holding company.
`(e) DETECTING AND REPORTING VIOLATIONS OF LAWS AND REGULATIONS-
`(1) IN GENERAL- An independent public accountant shall apply procedures
agreed upon by the Corporation to objectively determine the extent of the
compliance of any insured depository institution or depository institution
holding company with laws and regulations designated by the Corporation,
in consultation with the appropriate Federal banking agencies.
`(2) ATTESTATION REQUIREMENTS- Any attestation pursuant to paragraph
(1) shall be made in accordance with generally accepted standards for
attestation engagements.
`(f) FORM AND CONTENT OF REPORTS AND AUDITING STANDARDS-
`(1) IN GENERAL- The scope of each report by an independent public accountant
pursuant to this section, and the procedures followed in preparing such
report, shall meet or exceed the scope and procedures required by generally
accepted auditing standards and other applicable standards recognized by
the Corporation.
`(2) CONSULTATION- The Corporation shall consult with the other appropriate
Federal banking agencies in implementing this subsection.
`(g) IMPROVED ACCOUNTABILITY-
`(1) INDEPENDENT AUDIT COMMITTEE-
`(A) ESTABLISHMENT- Each insured depository institution (to which this
section applies) shall have an independent audit committee entirely made up
of outside directors who are independent of management of the institution,
and who satisfy any specific requirements the Corporation may establish.
`(B) DUTIES- An independent audit committee's duties shall include reviewing
with management and the independent public accountant the basis for the
reports issued under subsections (b)(2), (c), and (d).
`(C) CRITERIA APPLICABLE TO COMMITTEES OF LARGE INSURED DEPOSITORY
INSTITUTIONS- In the case of each insured depository institution which
the Corporation determines to be a large institution, the audit committee
required by subparagraph (A) shall--
`(i) include members with banking or related financial management expertise;
`(ii) have access to the committee's own outside counsel; and
`(iii) not include any large customers of the institution.
`(2) REVIEW OF QUARTERLY REPORTS OF LARGE INSURED DEPOSITORY INSTITUTIONS-
`(A) IN GENERAL- In the case of any insured depository institution which
the Corporation has determined to be a large institution, the Corporation
may require the independent public accountant retained by such institution
to perform reviews of the institution's quarterly financial reports in
accordance with procedures agreed upon by the Corporation.
`(B) REPORT TO AUDIT COMMITTEE- The independent public accountant referred
to in subparagraph (A) shall provide the audit committee of the insured
depository institution with reports on the reviews under such subparagraph
and the audit committee shall provide such reports to the Corporation,
any appropriate Federal banking agency, and any appropriate State bank
supervisor.
`(C) LIMITATION ON NOTICE- Reports provided under subparagraph (B) shall
be only for the information and use of the insured depository institution,
the Corporation, any appropriate Federal banking agency, and any State
bank supervisor which received the report.
`(3) QUALIFICATIONS OF INDEPENDENT PUBLIC ACCOUNTANTS-
`(A) IN GENERAL- All audit services required by this section shall be
performed only by an independent public accountant who--
`(i) has agreed to provide related working papers, policies, and procedures
to the Corporation, an appropriate Federal banking agency, and any State
bank supervisor, if requested; and
`(ii) has received a peer review that meets guidelines acceptable to
the Corporation.
`(B) REPORTS ON PEER REVIEWS- Reports on peer reviews shall be filed with
the Corporation and made available for public inspection.
`(4) ENFORCEMENT ACTIONS-
`(A) IN GENERAL- In addition to any authority contained in section 8, the
Corporation or an appropriate Federal banking agency may remove, suspend,
or bar an independent public accountant, upon a showing of good cause,
from performing audit services required by this section.
`(B) JOINT RULEMAKING- The appropriate Federal banking agencies shall
jointly issue rules of practice to implement this paragraph.
`(5) NOTICE BY ACCOUNTANT OF TERMINATION OF SERVICES- Any independent
public accountant performing an audit under this section who subsequently
ceases to be the accountant for the institution shall promptly notify the
Corporation pursuant to such rules as the Corporation shall prescribe.
`(h) EXCHANGE OF REPORTS AND INFORMATION-
`(1) REPORT TO THE INDEPENDENT AUDITOR-
`(A) IN GENERAL- Each insured depository institution which has engaged the
services of an independent auditor to audit such institution shall transmit
to the auditor a copy of the most recent report of condition made by the
institution (pursuant to this Act or any other provision of law) and a
copy of the most recent report of examination received by the institution.
`(B) ADDITIONAL INFORMATION- In addition to the copies of the reports
required to be provided under paragraph (1), each insured depository
institution shall provide the auditor with--
`(i) a copy of any supervisory memorandum of understanding with such
institution and any written agreement between such institution and any
appropriate Federal banking agency or any appropriate State bank supervisor
which is in effect during the period covered by the audit; and
`(ii) a report of--
`(I) any action initiated or taken by the appropriate Federal banking
agency or the Corporation during such period under subsection (a), (b),
(c), (e), (g), (i), (s), or (t) of section 8;
`(II) any action taken by any appropriate State bank supervisor under
State law which is similar to any action referred to in subclause (I); or
`(III) any assessment of any civil money penalty under any other provision
of law with respect to the institution or any institution-affiliated party.
`(2) REPORTS TO BANKING AGENCIES-
`(A) INDEPENDENT AUDITOR REPORTS- Each insured depository institution
shall provide to the Corporation, any appropriate Federal banking agency,
and any appropriate State bank supervisor, a copy of each audit report
and any qualification to such report, any management letter, and any
other report within 15 days of receipt of any such report, qualification,
or letter from the institution's independent auditors.
`(B) NOTICE OF CHANGE OF AUDITOR- Each insured depository institution
shall provide written notification to the Corporation, the appropriate
Federal banking agency, and any appropriate State bank supervisor of the
resignation or dismissal of the institution's independent auditor or the
engagement of a new independent auditor by the institution, including a
statement of the reasons for such change within 15 calendar days of the
occurrence of the event.
`(i) REQUIREMENTS FOR INSURED SUBSIDIARIES OF HOLDING COMPANIES- Except
with respect to any audit requirements established under or pursuant to
subsection (d), the requirements of this section may be satisfied for insured
depository institutions that are subsidiaries of a holding company, if--
`(1) services and functions comparable to those required under this section
are provided at the holding company level; and
`(2) either--
`(A) the institution has total assets, as of the beginning of such fiscal
year, of less than $5,000,000,000; or
`(B) the institution--
`(i) has total assets, as of the beginning of such fiscal year, of more
than $5,000,000,000 and less than $9,000,000,000; and
`(ii) has a CAMEL composite rating of 1 or 2 under the Uniform Financial
Institutions Rating System (or an equivalent rating by any such agency
under a comparable rating system) as of the most recent examination of such
institution by the Corporation or the appropriate Federal banking agency.
`(j) EXEMPTION FOR SMALL DEPOSITORY INSTITUTIONS- This section shall not
apply with respect to any fiscal year of any insured depository institution
the total assets of which, as of the beginning of such fiscal year, are
less than the greater of--
`(1) $150,000,000; or
`(2) such amount (in excess of $150,000,000) as the Corporation may
prescribe by regulation.'.
(b) EFFECTIVE DATE- The requirements established by the amendment made
by subsection (a) shall apply with respect to fiscal years of insured
depository institutions which begin after December 31, 1992.

7621f95d6e6e084e2b36c9ba9f826e770fd50b5e3279cb899897467e09fad661

(a) IN GENERAL- Section 10 of the Federal Deposit Insurance Act (12
U.S.C. 1820) is amended by redesignating subsection (e) as subsection
(f) and by inserting after subsection (d) (as added by section 111(a)(1)
of this subtitle) the following new subsection:
`(e) EXAMINATION FEES-
`(1) REGULAR AND SPECIAL EXAMINATIONS OF DEPOSITORY INSTITUTIONS- The
cost of conducting any regular examination or special examination of any
depository institution under subsection (b)(2), (b)(3), or (d) may be
assessed by the Corporation against the institution in proportion to the
assets or resources of the institution.
`(2) EXAMINATION OF AFFILIATES- The cost of conducting any examination
of any affiliate of any insured depository institution under subsection
(b)(4) may be assessed by the Corporation against each affiliate which is
examined in proportion to the assets or resources held by the affiliate
on the date of the examination.
`(3) ASSESSMENT AGAINST DEPOSITORY INSTITUTION IN CASE OF AFFILIATE'S
REFUSAL TO PAY-
`(A) IN GENERAL- Subject to subparagraph (B), if any affiliate of any
insured depository institution--
`(i) refuses to pay any assessment under paragraph (2); or
`(ii) fails to pay any such assessment before the end of the 60-day period
beginning on the date the affiliate receives notice of the assessment,
the Corporation may assess such cost against, and collect such cost from,
the depository institution.
`(B) AFFILIATE OF MORE THAN 1 DEPOSITORY INSTITUTION- If any affiliate
referred to in subparagraph (A) is an affiliate of more than 1 insured
depository institution, the assessment under subparagraph (A) may be
assessed against the depository institutions in such proportions as the
Corporation determines to be appropriate.
`(4) Civil money penalty for affiliate's refusal to cooperate-
`(A) PENALTY IMPOSED- If any affiliate of any insured depository
institution--
`(i) refuses to permit an examiner appointed by the Board of Directors
under subsection (b)(1) to conduct an examination; or
`(ii) refuses to provide any information required to be disclosed in the
course of any examination,
the depository institution shall forfeit and pay a penalty of not more than
$5,000 for each day that any such refusal continues.
`(B) ASSESSMENT AND COLLECTION- Any penalty imposed under subparagraph (A)
shall be assessed and collected by the Corporation in the manner provided
in section 8(i)(2).
`(5) DEPOSITS OF EXAMINATION ASSESSMENT- Amounts received by the Corporation
under this subsection (other than paragraph (4)) may be deposited in the
manner provided in section 13.'.
(b) EXAMINATIONS OF APPLICANTS FOR DEPOSIT INSURANCE- Section 10(b)(2)(B)
of the Federal Deposit Insurance Act (12 U.S.C. 1820(b)(2)(B)) is amended
to read as follows:
`(B) any depository institution which files an application with the
Corporation to become an insured depository institution;'.
(c) TECHNICAL AND CONFORMING AMENDMENT-
(1) Section 7(b)(10) of the Federal Deposit Insurance Act (as so redesignated
by section 103(b) of this Act) is amended by inserting `or section 10(e)'
after `under this section'.
(2) Section 10(b)(4)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1820(b)(4)(A)) is amended by striking `insured' each place such
term appears.

3f39c5aa55ac80cb4932cead645007183b31c74e867b28943f8e9f141f8f1b58

(a) IN GENERAL- Section 5 of the Federal Deposit Insurance Act (12
U.S.C. 1815(a)) is amended by striking all that precedes subsection (b)
and inserting the following:
`SEC. 5. DEPOSIT INSURANCE.
`(a) APPLICATION TO CORPORATION REQUIRED-
`(1) IN GENERAL- Except as provided in paragraphs (2) and (3), any depository
institution which is engaged in the business of receiving deposits other
than trust funds (as defined in section 3(p)), upon application to and
examination by the Corporation and approval by the Board of Directors,
may become an insured depository institution.
`(2) INTERIM DEPOSITORY INSTITUTIONS- In the case of any interim Federal
depository institution that is chartered by the appropriate Federal banking
agency and will not open for business, the depository institution shall be
an insured depository institution upon the issuance of the institution's
charter by the agency.
`(3) APPLICATION AND APPROVAL NOT REQUIRED IN CASES OF CONTINUED INSURANCE-
Paragraph (1) shall not apply in the case of any depository institution
whose insured status is continued pursuant to section 4.
`(4) REVIEW REQUIREMENTS- In reviewing any application under this subsection,
the Board of Directors shall consider the factors described in section 6
in determining whether to approve the application for insurance.
`(5) NOTICE OF DENIAL OF APPLICATION FOR INSURANCE- If the Board of
Directors votes to deny any application for insurance by any depository
institution, the Board of Directors shall promptly notify the appropriate
Federal banking agency and, in the case of any State depository institution,
the appropriate State banking supervisor of the denial of such application,
giving specific reasons in writing for the Board of Directors' determination
with reference to the factors described in section 6.
`(6) NONDELEGATION REQUIREMENT- The authority of the Board of Directors
to make any determination to deny any application under this subsection
may not be delegated by the Board of Directors.'.
(b) CONTINUATION OF INSURANCE UPON BECOMING A MEMBER BANK- Section 4(b)
of the Federal Deposit Insurance Act (12 U.S.C. 1814(b)) is amended to
read as follows:
`(b) CONTINUATION OF INSURANCE UPON BECOMING A MEMBER BANK- In the case
of an insured bank which is admitted to membership in the Federal Reserve
System or an insured State bank which is converted into a national member
bank, the bank shall continue as an insured bank.'.

7751671ab93d0ce30ec56c2422556960a7c99ea4dbe775fabc972ffdc24122d2

(a) STUDY REQUIRED- The Federal Deposit Insurance Corporation shall conduct
a study to determine--
(1) ways to reduce and streamline regulatory requirements imposed by
Federal banking agencies, particularly for small community depository
institutions; and
(2) which, if any, regulatory requirements may be waived for such
institutions without endangering the safety and soundness of the
institutions.
(b) REPORT- Before the end of the 1-year period beginning on the date of
the enactment of this Act, the Federal Deposit Insurance Corporation shall
submit a report to the Congress and the other appropriate Federal banking
agencies (as defined in section 3(q) of the Federal Deposit Insurance
Act) containing the Corporation's findings and conclusions under the study
conducted pursuant to subsection (a) and any recommendations for legislative
or administrative action the Corporation may determine to be appropriate.
(c) IMPLEMENTATION- The Federal Deposit Insurance Corporation and other
appropriate Federal banking agencies (as defined in section 3(q) of the
Federal Deposit Insurance Act), acting through the Federal Financial
Institutions Examination Council, shall implement any recommendation for
administrative action made by the Corporation pursuant to subsection (b).
Subtitle C--Accounting Reforms

12223956848be8f7620082908452eb5d5b0ffc6ffa7955d83194fa87e5d4f579

(a) IN GENERAL- The Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.) is amended by inserting after section 36 (as added by section 112
of this title) the following new section:
`SEC. 37. ACCOUNTING OBJECTIVES, STANDARDS, AND REQUIREMENTS.
`(a) IN GENERAL-
`(1) OBJECTIVES- Accounting principles applicable to reports or statements
required to be filed with Federal banking agencies by insured depository
institutions should--
`(A) result in financial statements and reports of condition that accurately
reflect the capital of such institutions;
`(B) facilitate effective supervision of the institutions; and
`(C) facilitate prompt regulatory action to resolve the institutions at
the least cost to the insurance funds.
`(2) STANDARDS-
`(A) UNIFORM ACCOUNTING PRINCIPLES CONSISTENT WITH GAAP- Subject to
the requirements of this Act and any other provision of Federal law,
the accounting principles applicable to reports or statements required
to be filed with Federal banking agencies by all insured depository
institutions shall be uniform and consistent with generally accepted
accounting principles.
`(B) STRINGENCY- If the appropriate Federal banking agency or the Corporation
determines that the application of any generally accepted accounting
principle to any insured depository institution is inconsistent with the
objectives described in paragraph (1), the agency or the Corporation may,
with respect to reports or statements required to be filed with such agency
or Corporation, prescribe an accounting principle which is applicable
to such institutions which is no less stringent than generally accepted
accounting principles.
`(3) REVIEW AND IMPLEMENTATION OF ACCOUNTING PRINCIPLES REQUIRED- Before
the end of the 1-year period beginning on the date of the enactment of
the Federal Deposit Insurance Corporation Improvement Act of 1991, each
appropriate Federal banking agency shall take the following actions:
`(A) REVIEW OF ACCOUNTING PRINCIPLES- Review--
`(i) all accounting principles used by depository institutions with respect
to reports or statements required to be filed with a Federal banking agency;
`(ii) all requirements established by the agency with respect to such
accounting procedures; and
`(iii) the procedures and format for reports to the agency, including
reports of condition.
`(B) MODIFICATION OF NONCOMPLYING MEASURES- Modify or eliminate any
accounting principle or reporting requirement of such Federal agency which
the agency determines fails to comply with the objectives and standards
established under paragraphs (1) and (2).
`(C) INCLUSION OF `OFF BALANCE SHEET' ITEMS- Develop and prescribe
regulations which require that all assets and liabilities, including
contingent assets and liabilities, of insured depository institutions be
reported in, or otherwise taken into account in the preparation of any
balance sheet, financial statement, report of condition, or other report
of such institution, required to be filed with a Federal banking agency.
`(D) MARKET VALUE DISCLOSURE- Develop jointly with the other appropriate
Federal banking agencies a method for insured depository institutions to
provide supplemental disclosure of the estimated fair market value of
assets and liabilities, to the extent feasible and practicable, in any
balance sheet, financial statement, report of condition, or other report
of any insured depository institution required to be filed with a Federal
banking agency.
`(b) Uniform Accounting of Capital Standards-
`(1) IN GENERAL- Each appropriate Federal banking agency shall maintain
uniform accounting standards to be used for determining compliance with
statutory or regulatory requirements of depository institutions.
`(2) TRANSITION PROVISION- Any standards in effect on the date of the
enactment of the Federal Deposit Insurance Corporation Improvement Act of
1991 under section 1215 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 shall continue in effect after such date of
enactment until amended by the appropriate Federal banking agency under
paragraph (1).
`(c) REPORTS TO BANKING COMMITTEES-
`(1) ANNUAL REPORTS REQUIRED- Each appropriate Federal banking agency
shall annually submit a report to the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate containing a description of any
difference between any accounting or capital standard used by such agency
and any accounting or capital standard used by any other agency.
`(2) EXPLANATION OF REASONS FOR DISCREPANCY- Each report submitted
under paragraph (1) shall contain an explanation of the reasons for any
discrepancy between any accounting or capital standard used by such agency
and any accounting or capital standard used by any other agency.
`(3) PUBLICATION- Each report under this subsection shall be published in
the Federal Register.'.
(b) REPEAL OF PROVISION SUPERSEDED BY SUBSECTION (a) AMENDMENTS- Section
1215 of the Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (12 U.S.C. 1833d) is hereby repealed.

99b2652656f1e8cb9231da2f43db1c21fb640941352e278b0e94dad39749718d

Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a))
is amended by adding at the end the following new paragraph:
`(9) SMALL BUSINESS AND SMALL FARM LOAN DATA-
`(A) IN GENERAL- In the report of condition required under paragraph
(3) for the 4th quarter of each calendar year, each insured depository
institution shall include information indicating the total number and
aggregate dollar amount of the institution's outstanding loans in each of
the following categories:
`(i) Commercial loans to small businesses.
`(ii) Commercial mortgage loans to small businesses.
`(B) REPORTING CATEGORIES- The information required by subparagraph (A) shall
be listed separately for each of the following small business categories:
`(i) Businesses which were in existence for less than a year at the time
the reported loans were made.
`(ii) Businesses with annual sales of $100,000 or less.
`(iii) Businesses with annual sales of more than $100,000 but not more
than $250,000.
`(iv) Businesses with annual sales of more than $250,000 but not more
than $1,000,000.
`(v) Businesses with annual sales of more than $1,000,000 but not more
than $20,000,000.
`(C) MINORITY-OWNED BUSINESS CATEGORY- The information required by
subparagraphs (A) and (B) shall be further itemized for minority-owned
small businesses.
`(D) CHARGE-OFFS AND INTEREST AND FEE INCOME- Any report of condition
referred to in subparagraph (A) shall indicate the insured depository
institution's net charge-offs and the interest and fee income for
commercial loans to small businesses and for commercial mortgage loans
to small businesses, listed separately for each of the following small
business categories:
`(i) Businesses with annual sales of $250,000 or less.
`(ii) Businesses with annual sales of more than $250,000.
`(E) AGRICULTURAL LOANS TO SMALL FARMS- Any report of condition referred to
in subparagraph (A) shall indicate the total number and aggregate dollar
amount of the insured depository institution's outstanding agricultural
loans to small farms.
`(F) DEFINITIONS- For purposes of this paragraph--
`(i) SMALL BUSINESS- The term `small business' means an enterprise with
annual sales of $20,000,000 or less.
`(ii) SMALL FARM- The term `small farm' means a farm business with annual
sales of $500,000 or less.
`(iii) COMMERCIAL LOAN- The term `commercial loan' means a loan that is
reportable as a commercial and industrial loan in the reports of condition
submitted pursuant to this subsection.
`(iv) COMMERCIAL MORTGAGE LOAN- The term `commercial mortgage loan'
means a loan that is reportable as a real estate loan secured by nonfarm
nonresidential properties in the reports of condition submitted pursuant
to this subsection.
`(v) AGRICULTURAL LOAN- The term `agricultural loan' means a loan that is
reportable as a loan to finance agricultural production and other loans
to farmers in the reports of condition submitted pursuant to this subsection.
`(G) EXEMPTION FOR SMALL DEPOSITORY INSTITUTIONS- The requirements of this
paragraph shall not apply to any insured depository institution which has
total assets, as of the most recent full fiscal year of such institution,
of $100,000,000 or less.'.

c50afc2f4644a8bed308258dedff57f14552c8ac27d57c9a11b33ae4617714ea

INTERSTATE BANKING.
Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a))
is amended by adding at the end the following new paragraph:
`(10) CONDITION REPORTS BY LARGE INSURED INSTITUTIONS ENGAGED IN INTERSTATE
BANKING-
`(A) COVERED INSTITUTIONS- For purposes of this paragraph--
`(i) INTERSTATE BRANCHING INSTITUTION- The term `covered interstate
branching institution' means an insured depository institution that has
total assets of $1,000,000,000 or more, as of its most recent fiscal year,
and maintains branches in more than one State.
`(ii) INTERSTATE SUBSIDIARY INSTITUTION- The term `covered interstate
subsidiary institution' means an insured depository institution that has
total assets of $500,000,000 or more, as of its most recent full fiscal
year, and it is a subsidiary of a holding company that controls insured
institution subsidiaries in more than one State and has consolidated assets
of $1,000,000,000 or more, as of the holding company's most recent full
fiscal year.
`(iii) DUAL COVERAGE- An insured depository institution that satisfies
the criteria of both clauses (i) and (ii) of this subparagraph shall be
deemed to be a covered interstate branching institution.
`(B) INTERSTATE BRANCHES: QUARTERLY LOAN DATA- A covered interstate branching
institution shall include in each quarterly report of financial condition
required by this subsection the following loan categories, listed separately
for each State within which it maintains one or more branches--
`(i) LOAN DATA ITEMS- (I) The aggregate dollar amount of the institution's
outstanding in-State loans in regard to such State, (II) the interest and
fee income earned on such loans, (III) the dollar amount of such loans
with nonaccrual status, and (IV) the net charge-offs for such loans.
`(ii) LOAN CATEGORIES- (I) Construction loans, (II) commercial mortgage
loans, (III) residential mortgage loans, (IV) farmland mortgage loans, (V)
commercial loans to small businesses, (VI) agricultural production loans,
and (VII) consumer loans.
`(C) DEFINITION OF IN-STATE LOANS- For purposes of subparagraph (B) the
term `in-State loan' means a loan that is made to a business entity that
is engaged in business in the State, an agricultural loan to an entity
in the State, a loan that is secured with property located in the State,
and a loan made to an individual who is a resident of the State.
`(D) INTERSTATE BRANCHES: QUARTERLY DEPOSIT DATA- A covered interstate
branching institution shall also include in each quarterly report of
financial condition required by this subsection the following deposit data
items for each of the following deposit categories, listed separately for
each State within which it maintains one or more branches--
`(i) DEPOSIT DATA ITEMS- (I) The aggregate dollar amount of deposit balances
at the institution's branch offices located within each State, and (II)
the interest paid on such deposit balances.
`(ii) DEPOSIT CATEGORIES- (I) Demand deposits (deposit balance data only),
(II) interest-bearing transaction accounts, (III) savings deposits, (IV)
time deposits under $100,000, (V) time deposits of $100,000 or more, and
(VI) State and local government deposits (deposit balance data only).
`(E) INTERSTATE BRANCHES: OTHER QUARTERLY DATA- A covered interstate
branching institution shall include in its report of financial condition
required by this subsection the following financial data, listed separately
for each State within which it maintains one or more branches--
`(i) the aggregate dollar amount the institution's real estate owned in
each State not including property owned by the institution for banking
operations; and
`(ii) the institution's income from service charges on deposit accounts
at the institution's branch institution.
`(F) INTERSTATE BRANCHES AND INTERSTATE SUBSIDIARIES: ANNUAL LOAN DATA-
A covered interstate subsidiary institution shall include in its report
of financial condition required by this subsection for the fourth quarter
of each calendar year the following information for its home State and a
covered interstate branching institution shall include in its report of
financial condition required by this subsection for the fourth quarter of
each calendar year the following information listed separately for each
State within which it maintains one or more branches--
`(i) SMALL BUSINESS LOANS- The institution's total number and aggregate
dollar amount of commercial loans and commercial mortgage loans outstanding
to small businesses whose principal place of business is located within
such State; itemized separately for--
`(I) commercial loans; and
`(II) commercial mortgage loans;
and further itemized separately for--
`(I) small businesses with annual sales of $250,000 or less, and
`(II) small businesses with annual sales of more than $250,000.
`(ii) SMALL FARM LOANS- The institution's total number and aggregate
dollar amount of agricultural production loans and farmland mortgage loans
outstanding to small farms whose principal place of business is located
with such State; itemized separately for--
`(I) agricultural production loans; and
`(II) farmland mortgage loans.
`(G) SMALL BUSINESS LOANS BY METROPOLITAN AREA- The small business loans
required by subparagraph (F)(i) shall be further itemized (according to the
principal place of business of the small business borrowers) separately for--
`(i) each metropolitan area of the State,
`(ii) the low and moderate income portion of each such metropolitan area, and
`(iii) the minority portion (if any) of each such metropolitan area.
`(H) AUTHORITY TO REQUIRE ADDITIONAL INFORMATION- The Federal banking
agencies may require insured depository institutions to report additional
information beyond the requirements of this paragraph for the purposes of
monitoring the insured condition of the depository institutions engaged in
interstate branching and monitoring the volume of credit provided at the
State and local community level by institutions engaged in interstate
banking through either separate insured institution subsidiaries or
interstate branching, and for implementing Federal antitrust laws.
`(I) ADJUSTMENT OF LOAN CATEGORIES- The Federal banking agencies may adjust
the loan category definitions prescribed by this paragraph to reflect
changes in loan category definitions or classifications generally employed
in the reports of financial condition required by this subsection, except
any such adjustments must be consistent with the purposes of this paragraph.
`(J) DEFINITIONS- For purposes of this paragraph--
`(i) the term `small business' means an enterprise with annual sales of
$20,000,000 or less;
`(ii) the term `small farm' means a farm business with annual sales of
$500,000 or less;
`(iii) the term `commercial loan' means a loan that is reportable as a
commercial and industrial loan;
`(iv) the term `agricultural production loan' means a loan that is reportable
as a loan to finance agricultural production and other loans to farmers;
`(v) the term `farmland mortgage loan' means a loan that is reportable as
a real estate loan secured by farmland;
`(vi) the term `metropolitan area' means a primary metropolitan statistical
area, or consolidated metropolitan area, or consolidated metropolitan
statistical area, as defined by the Secretary of Commerce;
`(vii) the term `commercial mortgage loan' means a loan that is reportable
as a real estate loan secured by nonfarm residential properties;
`(viii) the term `construction loan' means a loan that is reportable as
a real estate loan secured by construction and land development;
`(ix) the term `consumer loan' means a loan that is reportable as a loan
to individuals for household, family, and other personal purposes;
`(x) the term `non-metropolitan portion' means the portion of a State that
lies outside the metropolitan areas;
`(xi) the term `low and moderate income area' means census tracts, as
defined by the Secretary of Commerce, whose median family income is less
than or equal to 80 percent of the median family income of the metro area
in which they are located;
`(xii) the term `minority area' means all census tracts as defined by the
Secretary of Commerce in which minority persons compromise 75 percent or
more of the resident population;
`(xiii) the term `home State' means with respect to an insured depository
institution that is a subsidiary of a holding company, the State in which
the insured institution's deposit balances are principally located; and
`(xiv) the term `reportable' refers to the reporting classifications
employed in the reports of financial condition submitted pursuant to
this subsection.'.
Subtitle D--Prompt Regulatory Action

800069e8236de2dac6ffb6d58842c9787da96972c52edb8578d0e7af868ed50a

8c1136e9f71f69cbb6f013c9973b35f846e129b43a1be549e9d1c895da445813

INSTITUTIONS.
(a) IN GENERAL- Section 11(c)(4) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(c)(4)) is amended to read as follows:
`(4) Appointment of the corporation by the corporation-
`(A) IN GENERAL- Except as otherwise provided in section 21A of the
Federal Home Loan Bank Act and notwithstanding any other provision of
Federal law or the law or the constitution of any State, the Board of
Directors may appoint the Corporation as sole conservator or receiver of
an insured depository institution, after consultation with the appropriate
Federal banking agency and the appropriate State bank supervisor (if any),
if the Board of Directors determines that--
`(i) 1 or more of the grounds specified in any subparagraph of paragraph
(5) exist with respect to the institution; and
`(ii) the appointment is necessary to reduce--
`(I) the risk that the affected deposit insurance fund would incur a loss
with respect to the insured depository institution, or
`(II) any loss that the affected deposit insurance fund is expected to
incur with respect to that institution.
`(B) NONDELEGATION- The Board of Directors shall not delegate any action
under this paragraph.'.
(b) AMENDMENT RELATING TO APPLICABLE GROUND- Section 11(c)(5)(B) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(c)(5)(B)) is amended to read
as follows:
`(B) A finding by the Corporation that--
`(i) a conservator, receiver, or other legal custodian has been appointed
for the institution;
`(ii) the institution has been subject to the appointment of any such
conservator, receiver, or custodian for a period of at least 15 days; and
`(iii) 1 or more of the depositors in the institution is unable to withdraw
any amount of any insured deposit.'.
Subtitle E--Least-Cost Resolution

7d7912d394bbb4803246426330859c1e794d574716df2656f3954d9660ae8c5c

(a) LEAST-COST RESOLUTIONS REQUIRED-
(1) IN GENERAL- Section 13(c) of the Federal Deposit Insurance Act (12
U.S.C. 1823(c)) is amended--
(A) by redesignating paragraphs (5), (6), (7), (8), and (9) as paragraphs
(6), (7), (8), (9) and (10), respectively;
(B) by redesignating subparagraph (B) of paragraph (4) as paragraph (5); and
(C) by amending paragraph (4) (as amended by subparagraph (B) of this
paragraph) to read as follows:
`(4) LEAST-COST RESOLUTION REQUIRED-
`(A) IN GENERAL- Notwithstanding any other provision of this Act,
the Corporation may not exercise any authority under this subsection or
subsection (d), (f), (h), (i), or (k) with respect to any insured depository
institution unless--
`(i) the Corporation determines that the exercise of such authority is
necessary to meet the obligation of the Corporation to provide insurance
coverage for the insured deposits in such institution; and
`(ii) the total amount of the expenditures by the Corporation and
obligations incurred by the Corporation (including any immediate and
long-term obligation of the Corporation and any direct or contingent
liability for future payment by the Corporation) in connection with
the exercise of any such authority with respect to such institution is
the least costly to the affected deposit insurance fund of all possible
methods for meeting the Corporation's obligation under this section.
`(B) DETERMINING LEAST COSTLY APPROACH- In determining how to satisfy the
Corporation's obligations to an institution's insured depositors at the
least possible cost to the affected deposit insurance fund, the Corporation
shall comply with the following provisions:
`(i) PRESENT-VALUE ANALYSIS; DOCUMENTATION REQUIRED- The Corporation shall--
`(I) evaluate alternatives on a present-value basis, using a realistic
discount rate;
`(II) document that evaluation and the assumptions on which the evaluation
is based, including any assumptions with regard to interest rates,
asset recovery rates, asset holding costs, and payment of contingent
liabilities; and
`(III) retain the documentation for not less than 5 years.
`(ii) FOREGONE TAX REVENUES- Federal tax revenues that the Government would
forego as the result of a proposed transaction, to the extent reasonably
ascertainable, shall be treated as if they were revenues foregone by the
affected deposit insurance fund.
`(C) TIME OF DETERMINATION-
`(i) GENERAL RULE- For purposes of this subsection, the determination of the
costs of providing any assistance under paragraph (1) or (2) or any other
provision of this section with respect to any depository institution shall
be made as of the date on which the Corporation makes the determination
to provide such assistance to the institution under this section.
`(ii) RULE FOR LIQUIDATIONS- For purposes of this subsection, the
determination of the costs of liquidation of any depository institution
shall be made as of the earliest of--
`(I) the date on which a conservator is appointed for such institution;
`(II) the date on which a receiver is appointed for such institution; or
`(III) the date on which the Corporation makes any determination to provide
any assistance under this section with respect to such institution.
`(D) LIQUIDATION COSTS- In determining the cost of liquidating any depository
institution for the purpose of comparing the costs under subparagraph
(A) (with respect to such institution), the amount of such cost may not
exceed the amount which is equal to the sum of the insured deposits of such
institution as of the earliest of the dates described in subparagraph (C),
minus the present value of the total net amount the Corporation reasonably
expects to receive from the disposition of the assets of such institution
in connection with such liquidation.
`(E) DEPOSIT INSURANCE FUNDS AVAILABLE FOR INTENDED PURPOSE ONLY-
`(i) IN GENERAL- After December 31, 1994, or at such earlier time as the
Corporation determines to be appropriate, the Corporation may not take
any action, directly or indirectly, with respect to any insured depository
institution that would have the effect of increasing losses to any insurance
fund by protecting--
`(I) depositors for more than the insured portion of deposits (determined
without regard to whether such institution is liquidated); or
`(II) creditors other than depositors.
`(ii) DEADLINE FOR REGULATIONS- The Corporation shall prescribe regulations
to implement clause (i) not later than January 1, 1994, and the regulations
shall take effect not later than January 1, 1995.
`(iii) PURCHASE AND ASSUMPTION TRANSACTIONS- No provision of this
subparagraph shall be construed as prohibiting the Corporation from
allowing any person who acquires any assets or assumes any liabilities
of any insured depository institution for which the Corporation has been
appointed conservator or receiver to acquire uninsured deposit liabilities
of such institution so long as the insurance fund does not incur any loss
with respect to such deposit liabilities in an amount greater than the
loss which would have been incurred with respect to such liabilities if
the institution had been liquidated.
`(F) DISCRETIONARY DETERMINATIONS- Any determination which the Corporation
may make under this paragraph shall be made in the sole discretion of
the Corporation.'.
(2) ANNUAL GAO COMPLIANCE AUDIT- The Comptroller General of the United
States shall annually audit the Federal Deposit Insurance Corporation and
the Resolution Trust Corporation to determine the extent to which such
corporations are complying with section 13(c)(4) of the Federal Deposit
Insurance Act.
(3) CLARIFICATION OF MANNER OF APPLICATION TO THE RTC- Section 21A(b)(4)
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(4)) is amended--
(A) by striking `POWERS- Except as' and inserting `POWERS-
`(A) IN GENERAL- Except as'; and
(B) by adding at the end the following new subparagraph:
`(B) MANNER OF APPLICATION OF LEAST-COST RESOLUTION- For purposes of
applying section 13(c)(4) of the Federal Deposit Insurance Act to the
Corporation under subparagraph (A), the Corporation shall be treated as
the affected deposit insurance fund.'.
(b) SECURED CLAIMS IN EXCESS OF VALUE OF COLLATERAL- Section 11(d)(5)(D)
of the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(5)(D)) is amended
to read as follows:
`(D) AUTHORITY TO DISALLOW CLAIMS-
`(i) IN GENERAL- The receiver may disallow any portion of any claim by a
creditor or claim of security, preference, or priority which is not proved
to the satisfaction of the receiver.
`(ii) PAYMENTS TO LESS THAN FULLY SECURED CREDITORS- In the case of a
claim of a creditor against an insured depository institution which is
secured by any property or other asset of such institution, any receiver
appointed for any insured depository institution--
`(I) may treat the portion of such claim which exceeds an amount equal
to the fair market value of such property or other asset as an unsecured
claim against the institution; and
`(II) may not make any payment with respect to such unsecured portion of
the claim other than in connection with the disposition of all claims of
unsecured creditors of the institution.
`(iii) EXCEPTIONS- No provision of this paragraph shall apply with
respect to--
`(I) any extension of credit from any Federal home loan bank or Federal
Reserve bank to any institution described in paragraph (3)(A); or
`(II) any security interest in the assets of the institution securing any
such extension of credit.'.
(c) DATA COLLECTIONS- Section 7(a)(8) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(a)(8)) is amended to read as follows:
`(8) DATA COLLECTIONS- In addition to or in connection with any other
report required under this subsection, the Corporation shall take such
action as may be necessary to ensure that--
`(A) each insured depository institution maintains; and
`(B) the Corporation receives on a regular basis from such institution,
information on the total amount of all insured deposits, preferred deposits,
and uninsured deposits at the institution.'.
(d) INDUSTRY IMPACT ANALYSIS REQUIRED-
(1) IN GENERAL- Section 11(h) of the Federal Deposit Insurance Act (12
U.S.C. 1821(h)) is amended by adding at the end the following new paragraph:
`(4) FINANCIAL SERVICES INDUSTRY IMPACT ANALYSIS- After the appointment
of the Corporation as conservator or receiver for any insured depository
institution and before taking any action under this section or section 13 in
connection with the resolution of such institution, the Corporation shall--
`(A) evaluate the likely impact of the means of resolution, and any action
which the Corporation may take in connection with such resolution, on the
viability of other insured depository institutions in the same community; and
`(B) take such evaluation into account in determining the means for
resolving the institution and establishing the terms and conditions for
any such action.'.
(2) CLERICAL AMENDMENT- The heading for section 11(h) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(h)) is amended by striking `LIQUIDATION'
and inserting `RESOLUTION'.
(e) ASSISTANCE BEFORE APPOINTMENT OF CONSERVATOR OR RECEIVER- Section 13(c)
of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by
redesignating paragraphs (8), (9), and (10) (as so redesignated by subsection
(a)(1)(A) of this section), as paragraphs (9), (10), and (11), respectively,
and by inserting after paragraph (7) the following new paragraph:
`(8) ASSISTANCE BEFORE APPOINTMENT OF CONSERVATOR OR RECEIVER-
`(A) IN GENERAL- Subject to the least-cost provisions of paragraph (4), the
Corporation shall consider providing direct financial assistance under this
section for depository institutions before the appointment of a conservator
or receiver for such institution only under the following circumstances:
`(i) TROUBLED CONDITION CRITERIA- The Corporation determines--
`(I) grounds for the appointment of a conservator or receiver exist or
likely will exist in the future unless the depository institution's capital
levels are increased; and
`(II) it is unlikely that the institution can meet all currently applicable
capital standards without assistance.
`(ii) OTHER CRITERIA- The depository institution meets the following
criteria:
`(I) The appropriate Federal banking agency and the Corporation have
determined that, during such period of time preceding the date of such
determination as the agency or the Corporation considers to be relevant,
the institution's management has been competent and has complied with
applicable laws, rules, and supervisory directives and orders.
`(II) The institution's management did not engage in any insider dealing,
speculative practice, or other abusive activity.
`(B) PUBLIC DISCLOSURE- Any determination under this paragraph to provide
assistance under this section shall be made in writing and published in
the Federal Register.'.
(f) DEFINITIONS- Section 3(m) of the Federal Deposit Insurance Act (12
U.S.C. 1813(m)) is amended by adding at the end the following new paragraphs:
`(3) UNINSURED DEPOSITS- The term `uninsured deposit' means the amount
of any deposit of any depositor at any insured depository institution in
excess of the amount of the insured deposits of such depositor (if any)
at such depository institution.
`(4) PREFERRED DEPOSITS- The term `preferred deposits' means deposits of
any public unit (as defined in paragraph (1)) at any insured depository
institution which are secured or collateralized as required under State
law.'.

8c083ff45d941f2d5b932aa096fd16634637afa403b809d871af7f4aa2c070d0

FUND PURPOSES.
(a) REDESIGNATION OF SECTION 10(b) OF THE FEDERAL RESERVE ACT- The Federal
Reserve Act is amended by redesignating section 10(b) (12 U.S.C. 347b)
as section 10B.
(b) LIMITATION ON LIQUIDITY LENDING FOR DEPOSIT INSURANCE PURPOSES-
Section 10B of the Federal Reserve Act (as so redesignated by subsection
(a) of this section) is amended--
(1) by striking `Any Federal Reserve bank' and inserting `(a) IN GENERAL-
Any Federal Reserve bank'; and
(2) by adding at the end the following new subsection:
`(b) LIMITATIONS ON ADVANCES-
`(1) LIMITATION ON EXTENDED PERIODS- Except as provided in paragraph (2),
no advances to any undercapitalized depository institution by any Federal
Reserve bank under this section may be outstanding for more than 60 days
in any 120-day period.
`(2) VIABILITY EXCEPTION-
`(A) IN GENERAL- If--
`(i) the head of the appropriate Federal banking agency certifies in advance
in writing to the Federal Reserve bank that any depository institution is
a viable depository institution; or
`(ii) the Board conducts an examination of any depository institution and
the Chairman of the Board certifies in writing to the Federal Reserve bank
that the institution is a viable depository institution,
the limitation contained in paragraph (1) shall not apply during the 60-day
period beginning on the date such certification is received.
`(B) EXTENSIONS OF PERIOD- The 60-day period may be extended for additional
60-day periods upon receipt by the Federal Reserve bank of additional
written certifications under subparagraph (A) with respect to each such
additional period.
`(C) AUTHORITY TO ISSUE A CERTIFICATE OF VIABILITY MAY NOT BE DELEGATED-
The authority of the head of any agency to issue a written certification
of viability under this paragraph may not be delegated to any other person.
`(D) EXTENDED ADVANCES SUBJECT TO PARAGRAPH (3)- Notwithstanding paragraph
(1), an undercapitalized institution which does not have a certificate
of viability in effect under this paragraph may have advances outstanding
for more than 60 days in any 120-day period if the Board elects to treat--
`(i) such institution as a level 5 depository institution under paragraph
(3); and
`(ii) any such advance as an advance described in subparagraph (A)(i)
of paragraph (3).
`(3) ADVANCES TO LEVEL 5 DEPOSITORY INSTITUTIONS-
`(A) LIABILITY FOR INCREASED COSTS- Notwithstanding any other provision
of this section, if--
`(i) in the case of any level 5 depository institution (as defined in
section 38 of the Federal Deposit Insurance Act)--
`(I) any advance under this section to such institution is outstanding
without payment having been demanded as of the end of the 5-day period
beginning on the date the institution becomes a level 5 depository
institution; or
`(II) any new advance is made to such institution under this section after
the end of such period; and
`(ii) after the end of such 5-day period, any deposit insurance fund in
the Federal Deposit Insurance Corporation incurs costs in excess of the
cost of liquidating such institution as of the end of such period,
the excess cost shall be an obligation of the Board to the affected deposit
insurance fund, without regard to the terms of the advance or any collateral
pledged to secure the advance.
`(B) LIMITATION ON EXCESS COST- The liability of the Board under subparagraph
(A) for the amount of any excess cost described in such subparagraph shall
not exceed the amount of the loss the Board or any Federal Reserve bank
would have realized on the increases in the amount of advances made after
the 5-day period referred to in subparagraph (A) as if such increased
advances had not been secured.
`(C) SEMIANNUAL ASSESSMENTS ON FEDERAL RESERVE BANKS TO PAY OBLIGATION-
The amount of any liability of the Board to the Federal Deposit Insurance
Corporation shall be paid by the Board from the proceeds of semiannual
assessments which the Board may impose on the net earnings of the Federal
Reserve banks.
`(4) NO OBLIGATION TO MAKE ADVANCES- A Federal Reserve bank shall have
no obligation to make, increase, renew, or extend any advance or discount
under this Act to any depository institution.
`(5) PERMISSIBLE ADVANCES TO AVOID SYSTEMIC RISK-
`(A) IN GENERAL- Notwithstanding any other provision of this section, any
Federal Reserve bank may make advances to an undercapitalized depository
institution under this section if the Secretary of the Treasury determines
in writing, upon the recommendation of the Board, that the advances are
necessary to prevent a severe adverse effect on a regional or the national
economy.
`(B) LIABILITY FOR INCREASED COST- To the extent that any advance pursuant
to a determination of the Secretary of the Treasury under subparagraph
(A) to any depository institution causes any deposit insurance fund in
the Federal Deposit Insurance Corporation to incur costs in excess of the
cost of liquidating such institution as of the first day of such advance,
such excess cost shall be an obligation of the United States.
`(C) NOTICE- The Secretary of the Treasury shall provide a written notice
of each determination under subparagraph (A) to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate and each notice shall
contain a description of the basis for the determination.
`(6) DEFINITIONS-
`(A) APPROPRIATE FEDERAL BANKING AGENCY- The term `appropriate federal
banking agency' has the meaning given such term in section 3(q) of the
Federal Deposit Insurance Act.
`(B) CRITICAL CAPITAL LEVEL- The term `critical capital level' has the
same meaning given to such term in section 38 of the Federal Deposit
Insurance Act.
`(C) DEPOSITORY INSTITUTION- The term `depository institution' has the
meaning given to such term in section 19(b)(1)(A).
`(D) UNDERCAPITALIZED DEPOSITORY INSTITUTION- The term `undercapitalized
depository institution' means any depository institution which--
`(i) is not in compliance with all currently applicable capital standards; or
`(ii) has a composite CAMEL rating of 5 under the Uniform Financial
Institutions Rating System (or an equivalent rating by any such agency
under a comparable rating system) as of the most recent examination of
such institution.
`(E) VIABLE DEPOSITORY INSTITUTION- The term `viable depository institution'
means any depository institution which the appropriate Federal banking
agency or the Board determines, giving due regard to the economic conditions
and circumstances in the marketplace in which the institution operates,
has capital in excess of the critical capital level and is not expected
to fall below the critical capital level or be placed in conservatorship
or receivership.'.
(c) CONFORMING AMENDMENT- Section 11 of the Federal Reserve Act is amended
by adding the following new subsection:
`(n) To examine, at the Board's discretion, any depository institution,
and any affiliate of such depository institution, in connection with any
advance to, any discount of any instrument for, or any request for any
such advance or discount by, such depository institution under this Act.'.
(d) EFFECTIVE DATE- The amendment made by subsection (b) shall take effect
at the end of the 2-year period beginning on the date of the enactment of
this Act.

01069508b6a137506658b874cd90e4b1b657660dd390a1b365cde02af2350fe8

AND REPUDIATING SHAREHOLDERS CLAIMS.
Section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is
amended by inserting after paragraph (11) (as so redesignated by section
141(e) of this title) the following new paragraph:
`(12) Actions required if assistance is provided-
`(A) IN GENERAL- Upon providing any assistance under this subsection to
or on behalf of any insured depository institution and in addition to
any other action or condition the Corporation may take or impose, the
Corporation shall--
`(i) remove the board of directors of such institution; and
`(ii) treat the claim of any shareholder against the institution with
respect to any share or other capital investment of such shareholder in
the institution as if such institution had been closed.
`(B) PREEMPTION OF STATE LAW- The requirements of this paragraph, and the
duty of the Corporation to carry out such requirements, shall preempt any
right of any shareholder in any insured depository institution under the
law of any State.
`(C) WAIVER AUTHORITY-
`(i) IN GENERAL- The Corporation may waive the requirements of subparagraph
(A)(i) for any person upon a written finding that--
`(I) such waiver would lessen the risk to the Corporation posed by the
insured depository institution provided assistance; or
`(II) such person complied with the applicable laws, rules, supervisory
directives, and orders, and did not engage in any insider dealing,
speculative practice, or other abusive activity while serving on the board
of directors or any other management position in the institution.
`(ii) AUTHORITY LIMITED TO BOARD OF DIRECTORS- The authority to waive
the requirements of subparagraph (A)(i) may not be delegated by the Board
of Directors.
`(iii) PUBLICATION OF WAIVER- The Board of Directors shall publish a notice
in the Federal Register of any waiver granted under this subparagraph and
any amendment made by the Board to any such waiver.'.
Subtitle F--Federal Insurance for State Chartered Depository Institutions

45db2cb3c309faeb751c9ed7676c2a9a4fb2baab0423193a2862df726bd476de

This subtitle may be cited as the `Uniform Depositor Protection Act of 1991'.

b9ea04c6fe3d31736ee9913985c99342e9110872ab03bed089ec4ea782d5fb8a

SAVINGS ASSOCIATIONS, AND CREDIT UNIONS.
(a) IN GENERAL- After the end of the 2-year period beginning on the date of
the enactment of this Act, no State depository institution or State credit
union may accept deposits unless such depository institution or credit
union is an insured depository institution or an insured credit union,
as the case may be.
(b) DEFINITIONS- For purposes of this section--
(1) STATE DEPOSITORY INSTITUTION- The term `State depository institution'
has the meaning given to such term by section 3(c)(5) of the Federal
Deposit Insurance Act.
(2) STATE CREDIT UNION- The term `State credit union'--
(A) has the meaning given to such term by section 101(6) of the Federal
Credit Union Act; and
(B) includes--
(i) any corporate credit union; and
(ii) any member of the Central Liquidity Facility (as such terms are
defined in section 302 of the Federal Credit Union Act).
(3) INSURED DEPOSITORY INSTITUTION- The term `insured depository institution'
has the meaning given to such term by section 3(c)(2) of the Federal
Deposit Insurance Act.
(4) INSURED CREDIT UNION- The term `insured credit union' has the meaning
given to such term by section 101(7) of the Federal Credit Union Act.
Subtitle G--Technical Corrections

ff4c2123c0f181240e1f4c77da65c4b553c9d7b4c4296a78a04963c2a106bbf6

(a) SECTION 11 OF THE FEDERAL DEPOSIT INSURANCE ACT- Section 11 of the
Federal Deposit Insurance Act (12 U.S.C. 1821) is amended--
(1) in subsection (d)(3)(A), by striking `(4)(A)' and inserting `(4)';
(2) in subsection (d)(11)(B), by striking `(14)(C)' and inserting `(15)(B)';
(3) in subsection (e)(3)(C)(ii), by striking `subsection (k)' and inserting
`subsection (i)';
(4) in subsection (e)(4)(B)(iii), by striking `subsection (k)' and inserting
`subsection (i)';
(5) in subparagraphs (A) and (E) of subsection (e)(8), by striking
`subsections (d)(9) and (i)(4)(I)' and inserting `subsection (d)(9)';
(6) in subsection (n)(9), by striking `(13)' and inserting `(12)'; and
(7) in subsection (n)(11)(D), by striking `(8)' and inserting `(9)'.
(b) CLARIFICATION OF FDIC POWERS IN FSLIC RESOLUTION FUND CONSERVATORSHIPS
AND RECEIVERSHIPS- Section 11A(a) of the Federal Deposit Insurance Act
(12 U.S.C. 1821a(a)) is amended by adding at the end the following new
paragraphs:
`(4) RIGHTS, POWERS, AND DUTIES- Effective August 10, 1989, the Corporation
shall have all rights, powers, and duties to carry out the Corporation's
duties with respect to the assets and liabilities of the FSLIC Resolution
Fund that the Corporation otherwise has under this Act.
`(5) CORPORATION AS CONSERVATOR OR RECEIVER-
`(A) IN GENERAL- Effective August 10, 1989, the Corporation shall succeed
the Federal Savings and Loan Insurance Corporation as conservator or
receiver with respect to any depository institution--
`(i) the accounts of which were insured before August 10, 1989 by the
Federal Savings and Loan Insurance Corporation; and
`(ii) for which a conservator or receiver was appointed before January
1, 1989.
`(B) RIGHTS, POWERS, AND DUTIES- When acting as conservator or receiver
with respect to any depository institution described in subparagraph
(A), the Corporation shall have all rights, powers, and duties that the
Corporation otherwise has as conservator or receiver under this Act.'.
(c) CLERICAL AMENDMENT TO SUBSECTION HEADING- The heading for section 3(w) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(w)) is amended by striking
`HOLDING COMPANIES' and inserting `AFFILIATES OF DEPOSITORY INSTITUTIONS'.
(d) FDIC REMOVAL PERIOD MADE CONSISTENT WITH RTC PERIOD- Section 9(b)(2)(B)
of the Federal Deposit Insurance Act (12 U.S.C. 1819(b)(2)(B)) is amended
by inserting `before the end of the 90-day period beginning on the date
the action, suit, or proceeding is filed against the Corporation or the
Corporation is substituted as a party' before the period.
(e) CLARIFICATION OF FDIC AUTHORITY TO PAY DE MINIMUS CLAIMS- The 2d
sentence of section 11(i)(3)(A) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(i)(3)(A)) is amended by striking `The' and inserting
`Notwithstanding any other provision of Federal or State law, or the
constitution of any State, the'.
(f) CLERICAL AMENDMENT TO SECTION HEADING-
(1) The heading for section 219 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 is amended by striking `from taxation'.
(2) The table of contents for the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 is amended by striking `from taxation' in the
item relating to section 219.
Subtitle A--Regulation of Foreign Banks

b29b47b2f6be61ab967e47044aa4808304327edf9fe9c7142f2ec0a5acb8cf19

This subtitle may be cited as the `Foreign Bank Supervision Enhancement
Act of 1991'.

88632b1a15d0e9ea5bc537e95b50c8dc74559e0ea5cd87dce860dde9522816b2

(a) ESTABLISHMENT AND TERMINATION OF FOREIGN BANK OFFICES IN THE UNITED
STATES- Section 7 of the International Banking Act of 1978 (12 U.S.C. 3105)
is amended by striking subsection (d) and inserting the following new
subsections:
`(d) ESTABLISHMENT OF FOREIGN BANK OFFICES IN THE UNITED STATES-
`(1) PRIOR APPROVAL REQUIRED- No foreign bank may establish a branch or an
agency, or acquire ownership or control of a commercial lending company,
without the prior approval of the Board.
`(2) STANDARDS FOR APPROVAL- In acting on any application under paragraph
(1), the Board may take into account--
`(A) whether the foreign bank engages directly in the business of banking
outside the United States and is subject to comprehensive supervision or
regulation on a consolidated basis by the appropriate authorities in its
home country;
`(B) whether the appropriate authorities in the home country of the foreign
bank have consented to the proposed establishment of a branch, agency or
commercial lending company in the United States by the foreign bank;
`(C) the financial and managerial resources of the foreign bank, including
the bank's experience and capacity to engage in international banking;
`(D) whether the foreign bank has provided the Board with adequate assurances
that the bank will make available to the Board such information on the
operations or activities of the foreign bank and any affiliate of the
bank that the Board deems necessary to determine and enforce compliance
with this Act, the Bank Holding Company Act of 1956, and other applicable
Federal law; and
`(E) whether the foreign bank and the United States affiliates of the bank
are in compliance with applicable United States law.
`(3) ESTABLISHMENT OF CONDITIONS- Consistent with the standards for
approval in paragraph (2), the Board may impose such conditions on its
approval under this subsection as it deems necessary.
`(e) TERMINATION OF FOREIGN BANK OFFICES IN THE UNITED STATES-
`(1) STANDARDS FOR TERMINATION- The Board, after notice and opportunity for
hearing and notice to any appropriate State bank supervisor, may order a
foreign bank that operates a State branch or agency or commercial lending
company subsidiary in the United States to terminate the activities of
such branch, agency, or subsidiary if the Board finds that--
`(A) there is reasonable cause to believe that such foreign bank, or any
affiliate of such foreign bank, has committed a violation of law or engaged
in an unsafe or unsound banking practice in the United States; and
`(B) as a result of such violation or practice, the continued operation of
the foreign bank's branch, agency or commercial lending company subsidiary
in the United States would not be consistent with the public interest
or with the purposes of this Act, the Bank Holding Company Act of 1956,
or the Federal Deposit Insurance Act.
`(2) DISCRETION TO DENY HEARING- The Board may issue an order under
paragraph (1) without providing for an opportunity for a hearing if the
Board determines that expeditious action is necessary in order to protect
the public interest.
`(3) EFFECTIVE DATE OF TERMINATION ORDER- An order issued under paragraph
(1) shall take effect before the end of the 120-day period beginning on
the date such order is issued unless the Board extends such period.
`(4) COMPLIANCE WITH STATE AND FEDERAL LAW- Any foreign bank required to
terminate activities conducted at offices or subsidiaries in the United
States pursuant to this subsection shall comply with the requirements
of applicable Federal and State law with respect to procedures for the
closure or dissolution of such offices or subsidiaries.
`(5) RECOMMENDATION TO AGENCY FOR TERMINATION OF A FEDERAL BRANCH OR AGENCY-
The Board may transmit to the Comptroller of the Currency a recommendation
that the license of any Federal branch or Federal agency of a foreign bank
be terminated in accordance with section 4(i) if the Board has reasonable
cause to believe that such foreign bank or any affiliate of such foreign
bank has engaged in conduct for which the activities of any State branch
or agency may be terminated under paragraph (1).
`(6) ENFORCEMENT OF ORDERS-
`(A) IN GENERAL- In the case of contumacy of any office or subsidiary
of the foreign bank against which the Board or, in the case of an order
issued under section 4(i), the Comptroller of the Currency has issued
an order under paragraph (1) or a refusal by such office or subsidiary
to comply with such order, the Board or the Comptroller of the Currency
may invoke the aid of the district court of the United States within the
jurisdiction of which the office or subsidiary is located.
`(B) COURT ORDER- Any court referred to in subparagraph (A) may issue an
order requiring compliance with an order issued under paragraph (1).
`(f) JUDICIAL REVIEW-
`(1) JURISDICTION OF UNITED STATES COURTS OF APPEALS- Any foreign bank--
`(A) whose application under subsection (d) or section 10(a) has been
disapproved by the Board;
`(B) against which the Board has issued an order under subsection (e)
or section 10(b); or
`(C) against which the Comptroller of the Currency has issued an order
under section 4(i) of this Act,
may obtain a review of such order in the United States court of appeals
for any circuit in which such foreign bank operates a branch, agency, or
commercial lending company that has been required by such order to terminate
its activities, or in the United States Court of Appeals for the District
of Columbia Circuit, by filing a petition for review in the court before
the end of the 30-day period beginning on the date the order was issued.
`(2) SCOPE OF JUDICIAL REVIEW- Section 706 of title 5, United States Code,
(other than paragraph (2)(F) of such section) shall apply with respect to
any review under paragraph (1).
`(g) CONSULTATION WITH STATE BANK SUPERVISOR- The Board shall request and
consider any views of the appropriate State bank supervisor with respect
to any application or action under subsection (d) or (e).'.
(b) STANDARDS FOR APPROVAL OF FEDERAL BRANCHES AND AGENCIES- Section 4(a)
of the International Banking Act of 1978 (12 U.S.C. 3102(a)) is amended--
(1) by striking `(a) Except as provided in section 5,' and inserting `(a)
ESTABLISHMENT AND OPERATION OF FEDERAL BRANCHES AND AGENCIES-
`(1) INITIAL FEDERAL BRANCH OR AGENCY- Except as provided in section 5,'; and
(2) by adding at the end the following new paragraph:
`(2) BOARD CONDITIONS REQUIRED TO BE INCLUDED- In considering any
application for approval under this subsection, the Comptroller of the
Currency shall include any condition imposed by the Board under section
7(d)(3) as a condition for the approval of such application by the agency.'.
(c) STANDARDS FOR APPROVAL OF ADDITIONAL FEDERAL BRANCHES AND AGENCIES-
Section 4(h) of the International Banking Act of 1978 (12 U.S.C. 3102(h))
is amended--
(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively;
(2) by striking `(h) A foreign bank' and inserting `(h) ADDITIONAL BRANCHES
OR AGENCIES-
`(1) APPROVAL OF AGENCY REQUIRED- A foreign bank'; and
(3) by adding at the end the following new paragraph:
`(2) NOTICE TO AND COMMENT BY BOARD- The Comptroller of the Currency
shall provide the Board with notice and an opportunity for comment on any
application to establish an additional Federal branch or Federal agency
under this subsection.'.
(d) DISAPPROVAL FOR FAILURE TO AGREE TO PROVIDE NECESSARY INFORMATION-
Section 3(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(c))
is amended--
(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and
(B), respectively;
(2) by striking `(c) The Board shall' and inserting `(c) FACTORS FOR
CONSIDERATION BY BOARD-
`(1) COMPETITIVE FACTORS- The Board shall';
(3) by striking `In every case' and inserting `(2) BANKING AND COMMUNITY
FACTORS- In every case';
(4) by striking `community to be served. Notwithstanding any other provision
of law' and inserting `community to be served.
`(4) TREATMENT OF CERTAIN BANK STOCK LOANS- Notwithstanding any other
provision of law'; and
(5) by inserting after paragraph (2) (as so designated by paragraph (3)
of this subsection) the following new paragraph:
`(3) SUPERVISORY FACTORS- The Board shall disapprove any application under
this section by any company if--
`(A) the company fails to provide the Board with adequate assurances
that the company will make available to the Board such information on the
operations or activities of the company, and any affiliate of the company,
as the Board determines to be appropriate to determine and enforce compliance
with this Act; or
`(B) in the case of an application involving a foreign bank, the foreign bank
is not subject to comprehensive supervision or regulation on a consolidated
basis by the appropriate authorities in the bank's home country.'.
(e) CONFORMING AMENDMENTS-
(1) AFFILIATE DEFINED- Section 1(b)(13) of the International Banking Act
of 1978 (12 U.S.C. 3101(13)) is amended by inserting `affiliate,' after
`the terms' the 1st place such term appears.
(2) DEFINITIONS- Section 1(b) of the International Banking Act of 1978
(12 U.S.C. 3101(b)) is amended--
(A) by striking `and' at the end of paragraph (13);
(B) by striking the period at the end of paragraph (14) and inserting a
semicolon; and
(C) by adding at the end the following new paragraphs:
`(15) the term `representative office' means any office of a foreign bank
which is located in any State and is not a Federal branch, Federal agency,
State branch, State agency, or subsidiary of a foreign bank;
`(16) the term `office' means any branch, agency, or representative
office; and
`(17) the term `State bank supervisor' has the meaning given to such term
in section 3 of the Federal Deposit Insurance Act.'.

5f1239fd8ebd197ee9302be8027c03f4cb3f624afc202dea7089b1c58907cb51

(a) AUTHORITY OF BOARD TO CONDUCT AND COORDINATE EXAMINATIONS- Section 7(c)
of the International Banking Act of 1978 (12 U.S.C. 3105(b)) is amended--
(1) by striking paragraph (1) and inserting the following new paragraph:
`(1) EXAMINATION OF BRANCHES, AGENCIES, AND AFFILIATES-
`(A) IN GENERAL- The Board may examine each branch or agency of a foreign
bank, each commercial lending company or bank controlled by 1 or more
foreign banks or 1 or more foreign companies that control a foreign bank, and
other office or affiliate of a foreign bank conducting business in any State.
`(B) COORDINATION OF EXAMINATIONS-
`(i) IN GENERAL- The Board shall coordinate examinations under this paragraph
with the Comptroller of the Currency, the Federal Deposit Insurance
Corporation, and appropriate State bank supervisors to the extent such
coordination is possible.
`(ii) SIMULTANEOUS EXAMINATIONS- The Board may request simultaneous
examinations of each office of a foreign bank and each affiliate of such
bank operating in the United States.
`(C) ANNUAL ON-SITE EXAMINATION- Each branch or agency of a foreign bank
shall be examined at least once during each 12-month period (beginning
on the date the most recent examination of such branch or agency ended)
in an on-site examination.
`(D) COST OF EXAMINATIONS- The cost of any examination under subparagraph
(A) shall be assessed against and collected from the foreign bank or the
foreign company that controls the foreign bank, as the case may be.'; and
(2) in paragraph (2), by inserting `REPORTING REQUIREMENTS- ' before
`Each branch'.
(b) COORDINATION OF EXAMINATIONS- Section 4(b) of the International
Banking Act of 1978 (12 U.S.C. 3102(b)) is amended by adding at the end
thereof the following new sentence: `The Comptroller of the Currency shall
coordinate examinations of Federal branches and agencies of foreign banks
with examinations conducted by the Board under section 7(c)(1) and, to
the extent possible, shall participate in any simultaneous examinations
of the United States operations of a foreign bank requested by the Board
under such section.'.
(c) PARTICIPATION IN COORDINATED EXAMINATIONS-
(1) IN GENERAL- Section 10(b) of the Federal Deposit Insurance Act (12
U.S.C. 1820(b)) is amended by redesignating paragraphs (5) and (6) as
paragraphs (6) and (7), respectively, and by inserting after paragraph
(4) the following new paragraph:
`(5) EXAMINATION OF INSURED STATE BRANCHES- The Board of Directors shall--
`(A) coordinate examinations of insured State branches of foreign banks
with examinations conducted by the Board of Governors of the Federal Reserve
System under section 7(c)(1) of the International Banking Act of 1978; and
`(B) to the extent possible, participate in any simultaneous examination
of the United States operations of a foreign bank requested by the Board
under such section.'.
(2) TECHNICAL AND CONFORMING AMENDMENT- Paragraph (6) of section 10(b) of
the Federal Deposit Insurance Act (12 U.S.C. 1820(b)) (as so redesignated
under paragraph (1) of this subsection) by striking `or (4)' and inserting
`(4), or (5)'.

b0029530d29131b080b89a2c26ff38e0da008295eb1eeb0b57bd8b98f5f381f7

Section 10 of the International Banking Act of 1978 (12 U.S.C. 3107)
is amended to read as follows:
`SEC. 10. REPRESENTATIVE OFFICES.
`(a) PRIOR APPROVAL TO ESTABLISH REPRESENTATIVE OFFICES-
`(1) IN GENERAL- No foreign bank may establish a representative office
without the prior approval of the Board.
`(2) STANDARDS FOR APPROVAL- In acting on any application under this
paragraph to establish a representative office, the Board shall take
into account the standards contained in section 7(d)(2) and may impose
any additional requirements that the Board determines to be necessary to
carry out the purposes of this Act.
`(b) TERMINATION OF REPRESENTATIVE OFFICES- The Board may order the
termination of the activities of a representative office of a foreign bank
on the basis of the standards, procedures, and requirements applicable
under paragraphs (1), (2), and (3) of section 7(d) with respect to branches
and agencies.
`(c) EXAMINATIONS- The Board may make examinations of each representative
office of a foreign bank, the cost of which shall be assessed against and
paid by such foreign bank.
`(d) COMPLIANCE WITH STATE LAW- This Act does not authorize the establishment
of a representative office in any State in contravention of State law.'.

919cab5750d3aae31e0c9bfec4c8fb2651c3d95c3fcf8fcc3bb32873c86757f1

Section 7(j)(9) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)(9))
is amended to read as follows:
`(9) REPORTING OF STOCK LOANS-
`(A) REPORT REQUIRED- Any financial institution and any affiliate of
any financial institution that has credit outstanding to any person or
group of persons which is secured, directly or indirectly, by shares
of an insured depository institution shall file a consolidated report
with the appropriate Federal banking agency for such insured depository
institution if the extensions of credit by the financial institution and
such institution's affiliates, in the aggregate, are secured, directly
or indirectly, by 25 percent or more of any class of shares of the same
insured depository institution.
`(B) DEFINITIONS- For purposes of this paragraph--
`(i) FINANCIAL INSTITUTION- The term `financial institution' means any
insured depository institution and any foreign bank that is subject to the
provisions of the Bank Holding Company Act of 1956 by virtue of section 8(a)
of the International Banking Act of 1978.
`(ii) CREDIT OUTSTANDING- The term `credit outstanding' includes--
`(I) any loan or extension of credit,
`(II) the issuance of a guarantee, acceptance, or letter of credit,
including an endorsement or standby letter of credit, and
`(III) any other type of transaction that extends credit or financing to
the person or group of persons.
`(iii) GROUP OF PERSONS- The term `group of persons' includes any number
of persons that the financial institution reasonably believes--
`(I) are acting together, in concert, or with one another to acquire
or control shares of the same insured depository institution, including
an acquisition of shares of the same insured depository institution at
approximately the same time under substantially the same terms; or
`(II) have made, or propose to make, a joint filing under section 13 of
the Securities Exchange Act of 1934 regarding ownership of the shares of
the same insured depository institution.
`(C) INCLUSION OF SHARES HELD BY THE FINANCIAL INSTITUTION- Any shares of
the insured depository institution held by the financial institution or
any of its affiliates as principal shall be included in the calculation of
the number of shares in which the financial institution or its affiliates
has a security interest for purposes of subparagraph (A).
`(D) REPORT REQUIREMENTS-
`(i) TIMING OF REPORT- The report required under this paragraph shall
be a consolidated report on behalf of the financial institution and all
affiliates of the institution, and shall be filed in writing within 30
days of the date on which the financial institution or any such affiliate
first believes that the security for any outstanding credit consists of 25
percent or more of any class of shares of an insured depository institution.
`(ii) CONTENT OF REPORT- The report under this paragraph shall indicate
the number and percentage of shares securing each applicable extension
of credit, the identity of the borrower, and the number of shares held as
principal by the financial institution and any affiliate of such institution.
`(iii) COPY TO OTHER AGENCIES- A copy of any report under this paragraph
shall be filed with the appropriate Federal banking agency for the financial
institution (if other than the agency receiving the report under this
paragraph).
`(iv) OTHER INFORMATION- Each appropriate Federal banking agency may
require any additional information necessary to carry out the agency's
supervisory responsibilities.
`(E) EXCEPTIONS-
`(i) EXCEPTION WHERE INFORMATION PROVIDED BY BORROWER- Notwithstanding
subparagraph (A), a financial institution and the affiliates of such
institution shall not be required to report a transaction under this
paragraph if the person or group of persons referred to in such subparagraph
has disclosed the amount borrowed from such institution or affiliate and
the security interest of the institution or affiliate to the appropriate
Federal banking agency for the insured depository institution in connection
with a notice filed under this subsection, an application filed under the
Bank Holding Company Act of 1956, section 10 of the Home Owners' Loan Act,
or any other application filed with the appropriate Federal banking agency
for the insured depository institution as a substitute for a notice under
this subsection, such as an application for deposit insurance, membership
in the Federal Reserve System, or a national bank charter.
`(ii) EXCEPTION FOR SHARES OWNED FOR MORE THAN 1 YEAR- Notwithstanding
subparagraph (A), a financial institution and any affiliate of such
institution shall not be required to report a transaction involving--
`(I) a person or group of persons that has been the owner or owners of
record of the stock for a period of 1 year or more; or
`(II) stock issued by a newly chartered bank before the bank's opening.'.

9d35f01529beac83e3145a7f2aac8b23ba500cb09cc48d2296062285d178235d

The International Banking Act of 1978 (12 U.S.C. 3101 et seq.) is amended
by adding at the end the following new section:
`SEC. 15. COOPERATION WITH FOREIGN SUPERVISORS.
`(a) DISCLOSURE OF SUPERVISORY INFORMATION TO FOREIGN SUPERVISORS-
Notwithstanding any other provision of law, the Board, Comptroller of the
Currency, Federal Deposit Insurance Corporation, and Director of the Office
of Thrift Supervision may disclose information obtained in the course
of exercising supervisory or examination authority to any foreign bank
regulatory or supervisory authority if the Board, Comptroller, Corporation,
or Director determines that such disclosure is appropriate and will not
prejudice the interests of the United States.
`(b) REQUIREMENT OF CONFIDENTIALITY- Before making any disclosure of any
information to a foreign authority, the Board, Comptroller of the Currency,
Federal Deposit Insurance Corporation, and Director of the Office of Thrift
Supervision shall obtain, to the extent necessary, the agreement of such
foreign authority to maintain the confidentiality of such information to
the extent possible under applicable law.'.

a664a0a8417e29849c711125e610ea97d8d6c7416609c62b06d7ed1a7e7a16a3

UNITED STATES BANKS.
Section 8(a) of the International Banking Act of 1978 (12 U.S.C. 3106(a))
is amended by striking `thereto' and all that follows through the period
and inserting `to such provisions.'.

4617249d9f607a739e63dd7b95c28b2f772b7f705c54122e4166e65004e3f9ad

The International Banking Act of 1978 (12 U.S.C. 3101 et seq.) is amended
by inserting after section 15 (as added by section 206 of this subtitle)
the following new section:
`SEC. 16. PENALTIES.
`(a) CIVIL MONEY PENALTY-
`(1) IN GENERAL- Any foreign bank, and any office or subsidiary of a foreign
bank, that violates, and any individual who participates in a violation of,
any provision of this Act, or any regulation prescribed or order issued
under this Act, shall forfeit and pay a civil penalty of not more than
$25,000 for each day during which such violation continues.
`(2) ASSESSMENT PROCEDURES- Any penalty imposed under paragraph (1) may
be assessed and collected by the Board or the Comptroller of the Currency
in the manner provided in subparagraphs (E), (F), (G), (H), and (I) of
section 8(i)(2) of the Federal Deposit Insurance Act for penalties imposed
(under such section), and any such assessments shall be subject to the
provisions of such section.
`(3) HEARING PROCEDURE- Section 8(h) of the Federal Deposit Insurance Act
shall apply to any proceeding under this section.
`(4) DISBURSEMENT- All penalties collected under authority of this section
shall be deposited into the Treasury.
`(5) VIOLATE DEFINED- For purposes of this section, the term `violate'
includes taking any action (alone or with others) for or toward causing,
bringing about, participating in, counseling, or aiding or abetting
a violation.
`(6) REGULATIONS- The Board and the Comptroller of the Currency shall each
prescribe regulations establishing such procedures as may be necessary to
carry out this section.
`(b) NOTICE UNDER THIS SECTION AFTER SEPARATION FROM SERVICE- The
resignation, termination of employment or participation, or separation
of an institution-affiliated party (within the meaning of section 3(u)
of the Federal Deposit Insurance Act) with respect to a foreign bank,
or any office or subsidiary of a foreign bank (including a separation
caused by the termination of a location in the United States), shall not
affect the jurisdiction or authority of the Board or the Comptroller of the
Currency to issue any notice or to proceed under this section against any
such party, if such notice is served before the end of the 6-year period
beginning on the date such party ceased to be an institution-affiliated
party with respect to such foreign bank or such office or subsidiary of
a foreign bank (whether such date occurs on, before, or after the date of
the enactment of the Foreign Bank Supervision Enhancement Act of 1991).
`(c) PENALTY FOR FAILURE TO MAKE REPORTS-
`(1) FIRST TIER- Any foreign bank, or any office or subsidiary of a foreign
bank, that--
`(A) maintains procedures reasonably adapted to avoid any inadvertent
error and, unintentionally and as a result of such error--
`(i) fails to make, submit, or publish such reports or information as may
be required under this Act or under regulations prescribed by the Board
or the Comptroller of the Currency under this Act, within the period of
time specified by the agency; or
`(ii) submits or publishes any false or misleading report or information; or
`(B) inadvertently transmits or publishes any report that is minimally late,
shall be subject to a penalty of not more than $2,000 for each day during
which such failure continues or such false or misleading information is not
corrected. The foreign bank, or the office or subsidiary of a foreign bank,
shall have the burden of proving that an error was inadvertent and that a
report was inadvertently transmitted or published late.
`(2) SECOND TIER- Any foreign bank, or any office or subsidiary of a
foreign bank, that--
`(A) fails to make, submit, or publish such reports or information as may
be required under this Act or under regulations prescribed by the Board
or the Comptroller of the Currency pursuant to this Act, within the time
period specified by such agency; or
`(B) submits or publishes any false or misleading report or information,
in a manner not described in paragraph (1) shall be subject to a penalty of
not more than $20,000 for each day during which such failure continues or
such false or misleading information is not corrected.
`(3) THIRD TIER- Notwithstanding paragraph (2), if any company knowingly
or with reckless disregard for the accuracy of any information or report
described in paragraph (2) submits or publishes any false or misleading
report or information, the Board or the Comptroller of the Currency may,
in the Board's or Comptroller's discretion, assess a penalty of not more
than $1,000,000 or 1 percent of total assets of such foreign bank, or such
office or subsidiary of a foreign bank, whichever is less, per day for
each day during which such failure continues or such false or misleading
information is not corrected.
`(4) ASSESSMENT OF PENALTIES- Any penalty imposed under paragraph (1), (2),
or (3) shall be assessed and collected by the Board or the Comptroller of
the Currency in the manner provided in subsection (a)(2) (for penalties
imposed under such subsection) and any such assessment (including the
determination of the amount of the penalty) shall be subject to the
provisions of such subsection.
`(5) HEARING PROCEDURE- Section 8(h) of the Federal Deposit Insurance Act
shall apply to any proceeding under this subsection.'.

6c0018f0dd52e6dc759bd096837d9ba1fb8c223d760fd4fb5688f2070bfdce27

OTHER PROCEEDINGS.
Section 13(b) of the International Banking Act of 1978 (12 U.S.C. 3108(b))
is amended--
(1) by striking `(b) In addition to' and inserting  `(b) ENFORCEMENT-
`(1) IN GENERAL- In addition to';
(2) by adding at the end the following new paragraphs:
`(2) AUTHORITY TO ADMINISTER OATHS; SUBPOENA POWER- In the course of, or
in connection with, an application, examination, investigation, or other
proceeding under this Act, the Board, the Comptroller of the Currency,
and the Federal Deposit Insurance Corporation, as the case may be, any
member of the Board or of the Board of Directors of the Corporation, and
any designated representative of the Board, Comptroller, or Corporation
(including any person designated to conduct any hearing under this Act) may--
`(A) administer oaths and affirmations and take or cause to be taken
depositions; and
`(B) issue, revoke, quash, or modify any subpoena, including any subpoena
requiring the attendance and testimony of a witness or any subpoenas
duces tecum.
`(3) ADMINISTRATIVE ASPECTS OF SUBPOENAS-
`(A) ATTENDANCE AND PRODUCTION AT DESIGNATED SITE- The attendance of any
witness and the production of any document pursuant to a subpoena under
paragraph (2) may be required at the place designated in the subpoena
from any place in any State (as defined in section 3(a)(3) of the Federal
Deposit Insurance Act) or other place subject to the jurisdiction of the
United States.
`(B) SERVICE OF SUBPOENA- Service of a subpoena issued under this subsection
may be made by registered mail, or in such other manner reasonably calculated
to give actual notice as the Board, Comptroller of the Currency, or Federal
Deposit Insurance Corporation may by regulation or otherwise provide.
`(C) FEES AND TRAVEL EXPENSES- Witnesses subpoenaed under this subsection
shall be paid the same fees and mileage that are paid witnesses in the
district courts of the United States.
`(4) CONTUMACY OR REFUSAL-
`(A) IN GENERAL- In the case of contumacy of any person issued a subpoena
under this subsection or a refusal by such person to comply with such
subpoena, the Board, Comptroller of the Currency, or Federal Deposit
Insurance Corporation, or any other party to proceedings in connection
with which subpoena was issued may invoke the aid of--
`(i) the United States District Court for the District of Columbia, or
`(ii) any district court of the United States within the jurisdiction of
which the proceeding is being conducted or the witness resides or carries
on business.
`(B) COURT ORDER- Any court referred to in subparagraph (A) may issue an
order requiring compliance with a subpoena issued under this subsection.
`(5) EXPENSES AND FEES- Any court having jurisdiction of any proceeding
instituted under this subsection may allow any party to such proceeding such
reasonable expenses and attorneys' fees as the court deems just and proper.
`(6) CRIMINAL PENALTY- Any person who willfully fails or refuses to attend
and testify or to answer any lawful inquiry or to produce books, papers,
correspondence, memoranda, contracts, agreements, or other records in
accordance with any subpoena under this subsection shall be fined under
title 18, United States Code, imprisoned not more than 1 year, or both. Each
day during which any such failure or refusal continues shall be treated
as a separate offense.'.

87c0bead99967b456867f4c48d43f431c5d8c81d8200e1fcb31ff62a4925e5f5

OF 1956.
Section 3(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(c))
(as amended by section 202(d) of this subtitle) is amended by adding at
the end the following new paragraph:
`(5) MANAGERIAL RESOURCES- Consideration of the managerial resources of
a company or bank under paragraph (2) shall include consideration of
the competence, experience, and integrity of the officers, directors,
and principal shareholders of the company or bank.'.
Subtitle B--Customer and Consumer Provisions

cc3524f69931fd2e7775a1392ef432a251a6c471f811364d49f78267a9a269f5

REINVESTMENT ACT OF 1977.
(a) REPORT TO CONGRESS-
(1) IN GENERAL- Before the end of the 120-day period beginning on the date
of the enactment of this Act, each appropriate Federal banking agency shall
submit to the Banking, Finance and Urban Affairs Committee of the House
of Representatives and the Banking, Housing, and Urban Affairs Committee
of the Senate a report containing the following:
(A) Identification of the documentation deemed by each agency to be necessary
to properly carry out examinations under the Community Reinvestment Act
of 1977.
(B) Recommendations for steps to reduce paperwork required of insured
depository institutions in connection with examinations for compliance
with the Community Reinvestment Act of 1977.
(C) Recommendations for improvements in the administration and enforcement
of the Community Reinvestment Act of 1977.
(2) CONSIDERATIONS-
(A) ASSET SIZE- In preparing the recommendations for the report under
paragraph (1), the appropriate Federal banking agency shall take into
consideration the asset size of insured depository institutions and the
administrative resources available to such institutions in developing
recommendations for reduction of paperwork.
(B) CONSISTENCY OF RECOMMENDATION WITH PURPOSES OF THE ACT- The
recommendations for reduced paperwork contained in the report under paragraph
(1) shall be consistent with the purposes of the Community Reinvestment Act
of 1977 and the responsibility of the appropriate Federal banking agency
to properly evaluate each insured depository institution performance under
the Act.
(b) GAO STUDY AND RECOMMENDATIONS FOR IMPROVEMENTS AND COST SAVINGS-
(1) REQUIRED- The Comptroller General of the United States shall conduct a
study of the examination processes used by the appropriate Federal banking
agencies to evaluate the compliance with the Community Reinvestment Act
of 1977.
(2) FACTORS TO BE CONSIDERED- The study conducted under paragraph (1)
shall include the following analyses:
(A) An analysis of the documentation required of insured depository
institutions by each appropriate Federal banking agency in carrying out
such examinations referred to in paragraph (1).
(B) An analysis of to what extent, if any, such documentation may vary
according to the asset size of insured depository institutions.
(C) An analysis of the cost of such documentation based on a representative
sample of various insured depository institutions by asset size.
(D) An analysis of the effect of such documentation on the costs to the
agency in carrying out an examination under section 804 of the Community
Reinvestment Act of 1977.
(E) An analysis of the number of--
(i) applications which have been filed by insured depository institutions
which are subject to evaluation under provisions of the Community
Reinvestment Act of 1977;
(ii) such applications which have been subject to formal protests;
(iii) such protests which have been granted public hearings by each of
the banking agencies; and
(iv) such applications which have been denied on the grounds of
unsatisfactory performance under the Community Reinvestment Act of 1977.
(F) An analysis of the time required to process applications subject to
evaluation under the Community Reinvestment Act of 1977.
(G) An analysis of the methods utilized by each banking agency in processing
protests filed under the Community Reinvestment Act of 1977.
(H) An analysis of the rating systems used by each appropriate Federal
banking agency under the Community Reinvestment Act of 1977, together with
a detailed description of any inconsistencies between the rating systems
used by each such agency and the weight given the ratings in processing
and evaluating protests filed under such Act.
(I) An analysis of the factors considered in evaluating the performance of
credit card banks and other nontraditional institutions under the Community
Reinvestment Act of 1977.
(3) REPORT- Before the end of the 120-day period beginning on the date of
the enactment of this Act, the Comptroller General shall submit a report
containing the findings and conclusions made by the Comptroller General
in connection with the study required under paragraph (1).
(4) RECOMMENDATIONS- The report submitted under paragraph (3) shall
contain any recommendations for legislative or administrative action
the Comptroller General may determine to be appropriate, including any
legislative recommendations relating to--
(A) proposals to make administration and enforcement of the the Community
Reinvestment Act of 1977 more effective and consistent with the purposes
of the Act; and
(B) proposals to reduce costs associated with examinations under, and the
enforcement of, such Act.
(c) DEFINITIONS- For purposes of this section--
(1) APPROPRIATE FEDERAL BANKING AGENCY- The term `appropriate Federal
banking agency' has the meaning given to such term in section 3(q) of the
Federal Deposit Insurance Act.
(2) INSURED DEPOSITORY INSTITUTION- The term `insured depository institution'
has the meaning given to such term in section 3(c)(2) of the Federal
Deposit Insurance Act.

687dc3066b7252537a1cb038951443f67a917ceb74dcc80cec394352d703f5a4

OF MEETING COMMUNITY CREDIT NEEDS.
Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903)
is amended--
(1) by inserting before the first sentence the following: `(a) IN GENERAL-
'; and
(2) by adding at the end the following new subsection:
`(b) MAJORITY-OWNED INSTITUTIONS- In assessing and taking into account,
under subsection (a), the record of a nonminority-owned and nonwomen-owned
financial institution, the appropriate Federal financial supervisory agency
shall consider and give credit for capital investment, loan participation,
and other ventures undertaken by the institution in cooperation with
minority- and women-owned financial institutions and low-income credit
unions that help meet the credit needs of local communities in which such
institutions and credit unions are chartered.'.

c610630ddeca89326111c86751e51aeaf85bcf589085f044363990e95240e804

(a) PATTERN OR PRACTICE- Section 706(g) of the Equal Credit Opportunity
Act (15 U.S.C. 1691e(g)) is amended by adding at the end the following
new sentence: `Each agency referred to in paragraphs (1), (2), and (3)
of section 704(a) shall refer the matter to the Attorney General whenever
the agency has reason to believe that 1 or more creditors has engaged in
a pattern or practice of discouraging or denying applications for credit
in violation of section 701(a). Each such agency may refer the matter to
the Attorney General whenever the agency has reason to believe that 1 or
more creditors has violated section 701(a).'.
(b) DAMAGES- Section 706(h) of the Equal Credit Opportunity Act (15
U.S.C. 1691e(h)) is amended by inserting `actual and punitive damages and'
after `including'.
(c) NOTICE TO HUD- Section 706 of the Equal Credit Opportunity Act (15
U.S.C. 1691e) is amended by adding at the end the following new subsection:
`(k) NOTICE TO HUD OF VIOLATIONS- Whenever an agency referred to in paragraph
(1), (2), or (3) of section 704(a)--
`(1) has reason to believe, as a result of receiving a consumer complaint,
conducting a consumer compliance examination, or otherwise, that a violation
of this title has occurred;
`(2) has reason to believe that the alleged violation would be a violation
of the Fair Housing Act; and
`(3) does not refer the matter to the Attorney General pursuant to subsection
(g),
the agency shall notify the Secretary of Housing and Urban Development of
the violation, and shall notify the applicant that the Secretary of Housing
and Urban Development has been notified of the alleged violation and that
remedies for the violation may be available under the Fair Housing Act.'.

9758fde5e22d2180e78406b81d3f3872f222747ad238dfb39ba42093c7ee0406

Effective 1 year after the date of the enactment of this Act, no Federal
agency shall require any institution for which the agency is the appropriate
Federal banking agency (as defined in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q))) to prepare, file, or maintain any form
for the purpose of collection, analysis, or maintenance of appropriate
data to further the purposes of, or to fulfill the requirements of,
the Fair Housing Act, other than a form for data collection, analysis,
or maintenance prescribed pursuant to the Home Mortgage Disclosure Act.

533848af0b8c9df34551c2e7a35c8f32a2ea996fa36f82e53638ca693a88db8c

(a) IN GENERAL- The Secretary of the Treasury and the head of each
appropriate Federal banking agency (as defined in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q))) shall each conduct a review of
all laws primarily under their respective jurisdictions and all regulations
prescribed by them (except with respect to the Internal Revenue Code of 1986,
and all regulations, rules, and orders issued thereunder) with respect to
such laws to determine whether such laws and regulations adversely affect
the capital position and profitability of insured depository institutions.
(b) ADDITIONAL REVIEW REQUIRED- The review required by subsection (a)
shall include an evaluation to determine whether such laws and regulations
impose duplicative paperwork and compliance requirements.
(c) REPORT REQUIRED- Before the end of the 1-year period beginning on the
date of the enactment of this Act, the Secretary of the Treasury, and the
head of each appropriate Federal banking agency shall each submit a report
to the Congress containing--
(1) a description of the laws and regulations that should be revised,
simplified, repealed, or rescinded in order to enhance the capitalization
and profitability of insured depository institutions without adversely
affecting safety and soundness and consumer protection;
(2) to the extent practicable, an analysis of the costs and benefits of such
laws and regulations, including those pertaining to corporate applications
and filings and other reporting and recordkeeping requirements;
(3) an analysis of the cost impact and effect on safety and soundness of
reducing the number of items to be reported on reports of condition of
depository institutions with assets of less than $50,000,000; and
(4) an evaluation of the appropriateness of terminating recordkeeping and
reporting requirements not directly related to safety and soundness.

114de26a8a1788d714fc8a8dcd7581530da827f77a029f84f2906b46cb231340

Section 604(f)(2) of the Expedited Funds Availability Act (12
U.S.C. 4003(f)(2)) is amended by inserting after subparagraph (C) the
following new subparagraph:
`(D) After a depository institution has provided notice as required under
subparagraphs (A), (B), and (C), no further notice shall be required until
the earlier of 1 year after notice has been provided or such other time
as the exception for which the notice was provided ceases to apply.'.

aa33c37b06961394b4d66e1aa07f59486d302e35e3c9de501bc01447060f553a

TRANSFERS FROM ACCOUNTS.
(a) IN GENERAL- Section 907 of the Electronic Fund Transfer Act (15
U.S.C. 1693e) is amended by adding at the end the following new subsection:
`(c) PROHIBITION ON CERTAIN DECEPTIVE PRACTICES INVOLVING PREAUTHORIZED
TRANSFERS FROM ACCOUNTS-
`(1) IN GENERAL- No preauthorized electronic fund transfer, or any other
electronic fund transfer, from any consumer's account may be made on the
basis of any endorsement, deposit, transfer, or other form of negotiation
of any check by the consumer.
`(2) NO PROVISION OF ANY CHECK MAY CONSTITUTE AUTHORIZATION OF CONSUMER- No
provision contained on any check which is received by a receiving depository
institution and is endorsed, deposited, transferred, or otherwise negotiated
by any consumer may be treated as constituting the authorization of the
consumer to make any preauthorized electronic fund transfer, or any other
electronic fund transfer, from the consumer's account.
`(3) REGULATIONS- The Board shall prescribe such regulations as may be
necessary to carry out the purposes of this subsection.
`(4) CHECK DEFINED- For purposes of this subsection, the term `check'
has the meaning given to such term in section 602(7) of the Expedited
Funds Availability Act.
`(5) RECEIVING DEPOSITORY INSTITUTION- For purposes of this subsection,
the term `receiving depository institution' has the meaning given to such
term in section 602(20) of the Expedited Funds Availability Act.'.
(b) SCOPE OF APPLICATION- The amendment made by subsection (a) shall
apply with respect to any electronic fund transfer on or after the date of
the enactment of this Act without regard to the date of the endorsement,
deposit, transfer, or other form of negotiation of the check which, but
for the enactment of such amendment, would constitute the authorization
of the consumer to make any such transfer.

d8c3e5afdc4b7d29ce6edd10e76e984c32fc8a2600ce0e6fba4c7335bcb7b31a

(a) IN GENERAL- Section 603(e) of the Expedited Funds Availability Act
(12 U.S.C. 4002(e)) is amended by striking paragraphs (1)(C) and (2).
(b) CONFORMING AMENDMENTS- The Expedited Funds Availability Act (12
U.S.C. 4001 et seq.) is amended--
(1) in section 603(e) (12 U.S.C. 4002(e))--
(A) by striking the heading for paragraph (1) and inserting the following:
`(1) NONPROPRIETARY ATM- '; and
(B) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3),
respectively; and
(2) in section 604(a)(2) (12 U.S.C. 4003(a)(2)) by striking `and (2)'.

c8fc48d561c9f68dc81307f07390c6097cd42bb7caacbf7d41e6ad23dd1724c1

The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by
adding after section 38 (as added by section 131 of this Act) the following
new section:
`SEC. 39. NOTICE OF BRANCH CLOSURE.
`(a) NOTICE TO APPROPRIATE FEDERAL BANKING AGENCY-
`(1) IN GENERAL- An insured depository institution which proposes to close
any branch shall submit a notice of the proposed closing to the appropriate
Federal banking agency not later than the first day of the 90-day period
ending on the date proposed for the closing.
`(2) CONTENTS OF NOTICE- A notice under paragraph (1) shall include--
`(A) a detailed statement of the reasons for the decision to close the
branch; and
`(B) statistical or other information in support of such reasons.
`(b) NOTICE TO CUSTOMERS-
`(1) IN GENERAL- An insured depository institution which proposes to close
a branch shall provide notice of the proposed closing to its customers.
`(2) CONTENTS OF NOTICE- Notice under paragraph (1) shall consist of--
`(A) posting of a notice in a conspicuous manner on the premises of the
branch proposed to be closed during not less than the 30-day period ending
on the date proposed for that closing; and
`(B) inclusion of a notice in--
`(i) at least one of any regular account statements mailed to customers
of the branch proposed to be closed, or
`(ii) in a separate mailing,
by not later than the beginning of the 90-day period ending on the date
proposed for that closing.
`(c) ADOPTION OF POLICIES-
`(1) IN GENERAL- Each insured depository institution shall adopt policies
for closings of branches of the institution.
`(2) CONTENTS OF POLICIES- Policies adopted under this subsection by
an insured depository institution may include, among other matters,
the following:
`(A) IDENTIFICATION OF CANDIDATES FOR CLOSING- A requirement that in
identifying branches as candidates for closing, consideration shall be
given to profitability and growth potential as indicated by, at a minimum--
`(i) deposit level and mix;
`(ii) loan level and mix;
`(iii) trends in deposits and loans;
`(iv) operating income;
`(v) operating expense and size of staff; and
`(vi) transaction volume and mix;
except that in the case of a closure of an automated teller machine, only
clauses (v) and (vi) need be considered.
`(B) MARKET EVALUATION- A requirement that in evaluating whether to close
a branch, the institution shall assess the market demographics of, and the
availability of competitive financial services to, the immediate market
area of the branch, including assessment of--
`(i) economic trends and forecasts for the immediate market area;
`(ii) the overall coverage of the general market area of the branch,
including by other branches of the institution;
`(iii) other financial institutions that serve that general market area,
including locations of branches of such other institutions; and
`(iv) except in the case of a closing of an automatic teller machine,
general deposit and loan trends--
`(I) at other branches of the depository institution, and
`(II) if available, at locations of competitor depository institutions
that serve the general market area of the branch.
`(C) ASSESSMENT OF IMPACT- A requirement that the following measures shall
be taken to assess the impact of any decision to close a branch:
`(i) Determination of whether alternative actions could be taken to improve
the profitability of the branch to make it viable on a long-term basis.
`(ii) Forecast the resulting--
`(I) account runoff, and
`(II) operating costs savings, including those resulting from reductions
in staff and occupancy costs.
`(iii) Consider the impacts, if any, on surrounding neighborhoods and
the actions that can be taken to minimize those impacts, including, at
a minimum, by evaluation and financial consideration of other service
alternatives for the market area of the branch, including--
`(I) other nearby branches, and
`(II) any appropriate changes in facilities where customers' accounts
would be moved.
`(D) REVIEW AND APPROVAL- Requiring the following reviews and approvals
for all proposed branch closings:
`(i) Initiation of any such proposal by the appropriate executive officer
responsible for the affected community.
`(ii) Review and approval of any recommendation of such an action by--
`(I) a regional executive officer,
`(II) the appropriate branch group manager,
`(III) the branch officer responsible for compliance with requirements of
the Community Reinvestment Act of 1977,
`(IV) the officer of the institution responsible for compliance with
requirements of the Community Reinvestment Act of 1977,
`(V) appropriate executive management of the institution, and
`(VI) the Board of Directors of the institution.
`(E) NOTIFICATION TO CUSTOMERS- Compliance with the following notification
procedures for all branch closings:
`(i) Making every effort before the closing to assure that those affected
by the closing, including neighborhood and political groups, are given
ample and appropriate notice of the proposed closing, including by posting
notice of the closing in the branch lobby and at each drive-in and automatic
teller machine of the branch at least 30 days before the effective date
of the action.
`(ii) Except in the case of a closing of an automatic teller machine,
provision of a written notice to all account holders and safe deposit box
customers at the branch at least 30 days before the effective date of the
action, which includes--
`(I) the effective date of the action,
`(II) the branch to which accounts will be transferred,
`(III) the location of other nearby facilities of the institution, and
`(IV) a telephone number which customers may use to obtain further
information about the action.
`(F) DOCUMENTATION- The following documentation requirements:
`(i) Maintenance of all written analyses and decision approvals related to
the closing (including all customer complaints about the closing that are
submitted in writing) by the officer of the institution responsible for
compliance with requirements of the Community Reinvestment Act of 1977,
for a period of at least 2 years after the effective date of the closing.
`(ii) Indication in all written analyses related to the closing of whether
the neighborhood surrounding the branch is a low- to moderate-income area.
`(iii) Maintenance by the branch officer responsible for compliance with
requirements of the Community Reinvestment Act of 1977 of all customer
complaints about the closing that are submitted in writing.
`(3) BRANCH DEFINED- For purposes of this subsection, the term `branch'
includes an automatic teller machine.'.
Subtitle C--Bank Enterprise Act

de6e61aecde8f95049267f88be27860c79b67dfddfae1c85d8fbcd22965a5058

This subtitle may be cited as the `Bank Enterprise Act of 1991'.

e1d28173f91127ad2ccc25a494f06216f520e0cb406d09966a28d696ea78e43f

ACCOUNTS.
(a) QUALIFICATION OF LIFELINE ACCOUNTS BY FEDERAL RESERVE BOARD-
(1) IN GENERAL- The Board of Governors of the Federal Reserve System, and the
Federal Deposit Insurance Corporation shall establish minimum requirements
for accounts providing basic transaction services for consumers at insured
depository institutions in order for such accounts to qualify as lifeline
accounts for purposes of this section and section 7(b)(10) of the Federal
Deposit Insurance Act.
(2) FACTORS TO BE CONSIDERED- In determining the minimum requirements under
paragraph (1) for lifeline accounts at insured depository institutions,
the Board and the Corporation shall consider the following factors:
(A) Whether the account is available to provide basic transaction services
for individuals who maintain a balance of less than $1,000 or such other
amount which the Board may determine to be appropriate.
(B) Whether any service charges or fees to which the account is subject,
if any, for routine transactions do not exceed a minimal amount.
(C) Whether any minimum balance or minimum opening requirement to which
the account is subject, if any, is not more than a minimal amount.
(D) Whether checks, negotiable orders of withdrawal, or similar instruments
for making payments or other transfers to third parties may be drawn on
the account.
(E) Whether the depositor is permitted to make more than a minimal number
of withdrawals from the account each month by any means described in
subparagraph (D) or any other means.
(F) Whether a monthly statement itemizing all transactions for the monthly
reporting period is made available to the depositor with respect to such
account or a passbook is provided in which all transactions with respect
to such account are recorded.
(G) Whether depositors are permitted access to tellers at the institution
for conducting transactions with respect to such account.
(H) Whether other account relationships with the institution are required
in order to open any such account.
(I) Whether individuals are required to meet any prerequisite which
discriminates against low-income individuals in order to open such account.
(J) Such other factors as the Board may determine to be appropriate.
(3) DEFINITIONS- For purposes of this subsection--
(A) BOARD- The term `Board' means the Board of Governors of the Federal
Reserve System.
(B) INSURED DEPOSITORY INSTITUTION- The term `insured depository institution'
has the meaning given to such term in section 3(c)(2) of the Federal
Deposit Insurance Act.
(C) LIFELINE ACCOUNT- The term `lifeline account' means any transaction
account (as defined in section 19(b)(1)(C) of the Federal Reserve Act)
which meets the minimum requirements established by the Board under this
subsection.
(b) REDUCED ASSESSMENT RATES FOR LIFELINE ACCOUNT DEPOSITS-
(1) REPORTING LIFELINE ACCOUNT DEPOSITS- Section 7(a) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(a)) (as amended by sections 122
and 141 of this Act) is amended by redesignating paragraphs (6), (7),
(8), and (9) as paragraphs (7), (8), (9), and (10), respectively, and by
inserting after paragraph (5) the following new paragraph:
`(6) LIFELINE ACCOUNT DEPOSITS- In the reports of condition required
to be reported under this subsection, the deposits in lifeline accounts
(as defined in section 232(a)(3)(C) of the Bank Enterprise Act of 1991)
shall be reported separately.'.
(2) ASSESSMENT RATES APPLICABLE TO LIFELINE DEPOSITS- Section 7(b)
of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)) is amended by
redesignating paragraph (10) (as so redesignated by section 103(b) of this
Act) as paragraph (11) and by inserting after paragraph (9) the following
new paragraph:
`(10) ASSESSMENT RATE FOR LIFELINE ACCOUNT DEPOSITS- Notwithstanding any
other provision of this subsection, that portion of the average assessment
base of any insured depository institution which is attributable to
deposits in lifeline accounts (as reported in the institution's reports
of condition pursuant to subsection (a)(6)) shall be subject to assessment
at the assessment rate of  1/2  the maximum rate.'.
(3) ASSESSMENT PROCEDURE- Section 7(b)(2)(A) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)(2)(A)) is amended--
(A) by striking subclause (II) of clause (i) and inserting the following
new subclause:
`(II) such Bank Insurance Fund member's average assessment base for the
immediately preceding semiannual period (minus any amount taken into account
under clause (iii) with respect to lifeline account deposits); and'; and
(B) by striking subclause (II) of clause (ii) and inserting the following
new subclause:
`(II) such Savings Association Insurance Fund member's average assessment
base for the immediately preceding semiannual period (minus any amount
taken into account under clause (iii) with respect to lifeline account
deposits); and'; and
(C) by adding at the end the following new clause:
`(iii) the semiannual assessment due from any Bank Insurance Fund member or
Savings Association Insurance Fund member with respect to lifeline account
deposits for any semiannual assessment period shall be the product of--
`(I)  1/2  the assessment rate applicable with respect to such deposits
pursuant to paragraph (10) during that semiannual assessment period; and
`(II) the portion of such member's average assessment base for the
immediately preceding semiannual period which is attributable to deposits
in lifeline accounts (as reported in the institution's reports of condition
pursuant to subsection (a)(6)).'.
(c) AVAILABILITY OF FUNDS- This section shall not take effect until
sufficient funds are determined to be available to compensate the Federal
Deposit Insurance Corporation for any losses resulting from reduced
assessment rates.

bd6aff53287ef9cca3766ab398e70d3aeb5eb8b610abb660d7406d4eb8c7fd72

COMMUNITIES.
(a) DETERMINATION OF CREDITS FOR INCREASES IN COMMUNITY ENTERPRISE
ACTIVITIES-
(1) IN GENERAL- The Community Enterprise Assessment Credit Board
established under subsection (d) shall issue guidelines for insured
depository institutions eligible under this subsection for any community
enterprise assessment credit with respect to any semiannual period. Such
guidelines shall--
(A) designate the eligibility requirements for any institution meeting
applicable capital standards to receive an assessment credit under section
7(d)(4) of the Federal Deposit Insurance Act; and
(B) determine the community enterprise assessment credit available to any
eligible institution under paragraph (3).
(2) QUALIFYING ACTIVITIES- An insured depository institution shall be
eligible for any community enterprise assessment credit for any semiannual
period for--
(A) any increase during such period in the amount of new originations
of qualified loans and other financial assistance provided for low-
and moderate-income persons in distressed communities, or enterprises
integrally involved with such neighborhoods, which the Board determines
are qualified to be taken into account for purposes of this subsection; and
(B) any increase during such period in the amount of deposits accepted
from persons domiciled in the distressed community, at any office of the
institution (including any branch) located in any qualified distressed
community, and any increase during such period in the amount of new
originations of loans and other financial assistance made within that
community, except that in no case shall the credit for increased deposits
at any institution or branch exceed the credit for increased loan and
other financial assistance by the bank or branch in the distressed community.
(3) AMOUNT OF ASSESSMENT CREDIT- The amount of any community enterprise
assessment credit available under section 7(d)(4) for any insured depository
institution for any semiannual period shall be the amount which is equal
to 5 percent, in the case of an institution which does not meet the
community development organization requirements under section 235, and
15 percent, in the case of an institution which meets such requirements,
(or any percentage designated under paragraph (5)) of the sum of--
(A) the amounts of assets described in paragraph (2)(A); and
(B) the amounts of deposits, loans, and other extensions of credit described
in paragraph (2)(B).
(4) DETERMINATION OF QUALIFIED LOANS AND OTHER FINANCIAL ASSISTANCE-
Except as provided in paragraph (6), the types of loans and other financial
assistance which the Board may determine to be qualified to be taken into
account under paragraph (2)(A) for purposes of the community enterprise
assessment credit, may include the following:
(A) Loans insured or guaranteed by the Secretary of Housing and Urban
Development, the Secretary of the Department of Veterans Affairs, the
Administrator of the Small Business Administration, and the Secretary
of Agriculture.
(B) Loans or financing provided in connection with activities assisted by
the Administrator of the Small Business Administration or any small business
investment company and investments in small business investment companies.
(C) Loans or financing provided in connection with any neighborhood housing
service program assisted under the Neighborhood Reinvestment Corporation Act.
(D) Loans or financing provided in connection with any activities assisted
under the community development block grant program under title I of the
Housing and Community Development Act of 1974.
(E) Loans or financing provided in connection with activities assisted
under title II of the Cranston-Gonzalez National Affordable Housing Act.
(F) Loans or financing provided in connection with a homeownership program
assisted under title III of the United States Housing Act of 1937 or subtitle
B or C of title IV of the Cranston-Gonzalez National Affordable Housing Act.
(G) Financial assistance provided through community development corporations.
(H) Federal and State programs providing interest rate assistance for
homeowners.
(I) Extensions of credit to nonprofit developers or purchasers of low-income
housing and small business developments.
(J) In the case of members of any Federal home loan bank, participation
in the community investment fund program established by the Federal home
loan banks.
(K) Conventional mortgages targeted to low- or moderate-income persons.
(5) ADJUSTMENT OF PERCENTAGE- The Board may increase or decrease the
percentage referred to in paragraph (3) for determining the amount of any
community enterprise assessment credit pursuant to such paragraph, except
that the percentage established for insured depository institutions which
meet the community development organization requirements under section
235 shall not be less than 3 times the amount of the percentage applicable
for insured depository institutions which do not meet such requirements.
(6) CERTAIN INVESTMENTS NOT ELIGIBLE TO BE TAKEN INTO ACCOUNT- Investments by
any insured depository institution in loans and securities that are not the
result of originations by the institution shall not be taken into account for
purposes of determining the amount of any credit pursuant to this subsection.
(b) QUALIFIED DISTRESSED COMMUNITY DEFINED-
(1) IN GENERAL- For purposes of this section, the term `qualified distressed
community' means any neighborhood or community which--
(A) meets the minimum area requirements under paragraph (3) and the
eligibility requirements of paragraph (4); and
(B) is designated as a distressed community by any insured depository
institution in accordance with paragraph (2) and such designation is not
disapproved under such paragraph.
(2) DESIGNATION REQUIREMENTS-
(A) NOTICE OF DESIGNATION-
(i) NOTICE TO AGENCY- Upon designating an area as a qualified distressed
community, an insured depository institution shall notify the appropriate
Federal banking agency of the designation.
(ii) PUBLIC NOTICE- Upon the effective date of any designation of an area
as a qualified distressed community, an insured depository institution
shall publish a notice of such designation in major newspapers and other
community publications which serve such area.
(B) AGENCY DUTIES RELATING TO DESIGNATIONS-
(i) PROVIDING INFORMATION- At the request of any insured depository
institution, the appropriate Federal banking agency shall provide to the
institution appropriate information to assist the institution to identify
and designate a qualified distressed community.
(ii) PERIOD FOR DISAPPROVAL- Any notice received by the appropriate Federal
banking agency from any insured depository institution under subparagraph
(A)(i) shall take effect at the end of the 90-day period beginning on
the date such notice is received unless written notice of the approval or
disapproval of the application by the agency is provided to the institution
before the end of such period.
(3) MINIMUM AREA REQUIREMENTS- For purposes of this subsection, an area
meets the requirements of this paragraph if--
(A) the area is within the jurisdiction of 1 unit of general local
government;
(B) the boundary of the area is contiguous; and
(C) the area--
(i) has a population, as determined by the most recent census data available,
of not less than--
(I) 4,000, if any portion of such area is located within a metropolitan
statistical area (as designated by the Director of the Office of Management
and Budget) with a population of 50,000 or more; or
(II) 1,000, in any other case; or
(ii) is entirely within an Indian reservation (as determined by the
Secretary of the Interior).
(4) ELIGIBILITY REQUIREMENTS- For purposes of this subsection, an area
meets the requirements of this paragraph if at least 2 of the following
criteria are met:
(A) INCOME- At least 70 percent of the families and unrelated individuals
residing in the area have incomes of less than 80 percent of the median
income of the area.
(B) POVERTY- At least 20 percent of the residents residing in the area
have incomes which are less than the national poverty level (as determined
pursuant to criteria established by the Director of the Office of Management
and Budget).
(C) UNEMPLOYMENT- The unemployment rate for the area is one and one-half
times greater than the national average (as determined by the Bureau of
Labor Statistic's most recent figures).
(c) ASSESSMENT CREDIT PROVIDED-
(1) IN GENERAL- Section 7(d) of the Federal Deposit Insurance Act (12
U.S.C. 1817(d)) amended--
(A) by redesignating paragraphs (4) and (5) as paragraphs (6) and (7),
respectively; and
(B) by inserting after paragraph (3) the following new paragraphs:
`(4) COMMUNITY ENTERPRISE ASSESSMENT CREDITS- Notwithstanding paragraphs
(2)(A) and (3)(A) and in addition to any assessment credit authorized under
paragraph (2)(B) or (3)(B), the Corporation shall allow an assessment credit
for any semiannual assessment period to any Bank Insurance Fund member or
Savings Association Insurance Fund member satisfying the requirements of
the Community Enterprise Assessment Credit Board under section 233(a)(1)
of the Bank Enterprise Act of 1991 in the amount determined by such Board
through regulation for such period pursuant to such section.
`(5) MAXIMUM AMOUNT OF CREDIT- The total amount of assessment credits
allowed under this subsection (including community enterprise assessment
credits pursuant to paragraph (4)) for any insured depository institution
for any semiannual period shall not exceed the amount which is equal
to 20 percent, in the case of an institution which does not meet the
community development organization requirements under section 235 of the
Bank Enterprise Act of 1991, and 50 percent, in the case of an institution
which meets such requirements, of the assessment imposed on such institution
for the semiannual period.'.
(2) TECHNICAL AND CONFORMING AMENDMENTS-
(A) Subparagraph (A) of section 7(d)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(d)(1)) is amended by inserting `(other than credits
allowed pursuant to paragraph (4))' after `amount to be credited'.
(B) Subparagraph (B) of section 7(d)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(d)(1)) is amended by inserting `(taking into account
any assessment credit allowed pursuant to paragraph (4))' after `should
be reduced'.
(d) COMMUNITY ENTERPRISE ASSESSMENT CREDIT BOARD-
(1) ESTABLISHMENT- There is hereby established the `Community Enterprise
Assessment Credit Board'.
(2) NUMBER AND APPOINTMENT- The Board shall be composed of 5 members
as follows:
(A) The Secretary of the Treasury or a designee of the Secretary.
(B) The Secretary of Housing and Urban Development or a designee of the
Secretary.
(C) The Chairperson of the Federal Deposit Insurance Corporation or a
designee of the Chairperson.
(D) 2 individuals appointed by the President from among individuals who
represent community organizations.
(3) TERMS-
(A) APPOINTED MEMBERS- Each appointed member shall be appointed for a term
of 5 years.
(B) INTERIM APPOINTMENT- Any member appointed to fill a vacancy occurring
before the expiration of the term to which such member's predecessor was
appointed shall be appointed only for the remainder of such term.
(C) CONTINUATION OF SERVICE- Each appointed member may continue to serve
after the expiration of the period to which such member was appointed
until a successor has been appointed.
(4) CHAIRPERSON- The Secretary of the Treasury shall serve as the Chairperson
of the Board.
(5) NO PAY- No members of the Commission may receive any pay for service
on the Board.
(6) TRAVEL EXPENSES- Each member shall receive travel expenses, including
per diem in lieu of subsistence, in accordance with sections 5702 and 5703
of title 5, United States Code.
(7) MEETINGS- The Board shall meet at the call of the Chairperson or a
majority of the Board's members.
(e) DUTIES OF THE BOARD-
(1) PROCEDURE FOR DETERMINING COMMUNITY ENTERPRISE ASSESSMENT CREDITS- The
Board shall establish procedures for accepting and considering applications
by insured depository institutions under subsection (a)(1) for community
enterprise assessment credits and making determinations with respect to
such applications.
(2) NOTICE TO FDIC- The Board shall notify the applicant and the Federal
Deposit Insurance Corporation of any determination of the Board with respect
to any application referred to in paragraph (1) in sufficient time for the
Corporation to include the amount of such credit in the computation made
for purposes of the notification required under paragraph section 7(d)(1)(B).
(f) AVAILABILITY OF FUNDS- This section shall not take effect until
sufficient funds are determined to be available to compensate the Federal
Deposit Insurance Corporation for any losses resulting from the award of
community enterprise assessment credits.
(g) DEFINITIONS- For purposes of this section--
(1) APPROPRIATE FEDERAL BANKING AGENCY- The term `appropriate Federal
banking agency' has the meaning given to such term in section 3(q) of the
Federal Deposit Insurance Act.
(2) BOARD- The term `Board' means the Community Enterprise Assessment
Credit Board established under the amendment made by subsection (d).
(3) INSURED DEPOSITORY INSTITUTION- The term `insured depository institution'
has the meaning given to such term in section 3(c)(2) of the Federal
Deposit Insurance Act.

d969a2412bb318a3598990ec960d097397424f5a55a827c6a7b2b655445e010e

(a) COMMUNITY DEVELOPMENT ORGANIZATIONS DESCRIBED- For purposes of this
subtitle, any insured depository institution shall be treated as meeting
the community development organization requirements of this section if--
(1) the institution--
(A) is a community development bank, or controls any community development
bank, which meets the requirements of subsection (b);
(B) controls any community development corporation, or maintains any
community development unit within the institution, which meets the
requirements of subsection (c);
(C) invests in any community development credit union which meets the
requirements established by the National Credit Union Administration Board
for community development credit unions; or
(D) invests in a community development organization jointly controlled by
two or more institutions;
(2) except in the case of an institution which is a community development
bank, the amount of the capital invested, in the form of debt or equity,
by the institution in the community development organization referred to
in paragraph (1) (or, in the case of any community development unit, the
amount which the institution irrevocably makes available to such unit for
the purposes described in paragraph (3)) is not less than the greater of--
(A)  1/2  of 1 percent of the capital, as defined by generally accepted
accounting principles, of the institution; or
(B) the sum of the amounts invested in such community development
organization; and
(3) the community development organization provides loans for residential
mortgages, home improvement, and community development and other financial
services, other than financing for the purchase of automobiles or extension
of credit under any open-end credit plan (as defined in section 103(i) of
the Truth in Lending Act), to low- and moderate-income persons, nonprofit
organizations, and small businesses located in qualified distressed
communities in a manner consistent with the intent of this subtitle.
(b) COMMUNITY DEVELOPMENT BANK REQUIREMENTS- A community development bank
meets the requirements of this subsection if--
(1) the community development bank has a 15-member advisory board designated
as the `Community Investment Board' and consisting entirely of community
leaders who--
(A) shall be appointed initially by the board of directors of the community
development bank and thereafter by the Community Investment Board from
nominations received from the community; and
(B) are appointed for a single term of 2 years, except that, of the initial
members appointed to the Community Investment Board,  1/3  shall be appointed
for a term of 8 months,  1/3  shall be appointed for a term of 16 months,
and  1/3  shall be appointed for a term of 24 months, as designated by
the board of directors of the community development bank at the time of
the appointment;
(2)  1/3  of the members of the community development bank's board of
directors are appointed from among individuals nominated by the Community
Investment Board; and
(3) the bylaws of the community development bank require that the board
of directors of the bank meet with the Community Investment Board at least
once every 3 months.
(c) COMMUNITY DEVELOPMENT CORPORATION REQUIREMENTS- Any community development
corporation, or community development unit within any insured depository
institution meets the requirements of this subsection if the corporation or
unit provides the same or greater, as determined by the appropriate Federal
banking agency, community participation in the activities of such corporation
or unit as would be provided by a Community Investment Board under subsection
(b) if such corporation or unit were a community development bank.
(d) ADEQUATE DISPERSAL REQUIREMENT- The appropriate Federal banking agency
may approve the establishment of a community development organization
under this subtitle only upon finding that the distressed community is
not adequately served by an existing community development organization.
(e) DEFINITIONS- For purposes of this section--
(1) COMMUNITY DEVELOPMENT BANK- The term `community development bank'
means any depository institution (as defined in section 3(c)(1) of the
Federal Deposit Insurance Act).
(2) COMMUNITY DEVELOPMENT ORGANIZATION- The term `community development
organization' means any community development bank, community development
corporation, community development unit within any insured depository
institution, or community development credit union.
(3) LOW- AND MODERATE-INCOME PERSONS- The term `low- and moderate-income
persons' has the meaning given such term in section 102(a)(20) of the
Housing and Community Development Act of 1974.
(4) NONPROFIT ORGANIZATION; SMALL BUSINESS- The terms `nonprofit
organization' and `small business' have the meanings given to such terms
by regulations which the appropriate Federal banking agency shall prescribe
for purposes of this section.
(5) QUALIFIED DISTRESSED COMMUNITY- The term `qualified distressed community'
has the meaning given to such term in section 233(b).
Subtitle A--Activities

accc0e21eecebcd7ba9ff9b9a9aee78f69575fe0bd9aa495ad27b2d0d809eb80

(a) IN GENERAL- Section 29 of the Federal Deposit Insurance Act (12
U.S.C. 1831f) is amended--
(1) in subsection (c), by striking `an insured depository institution'
and inserting `any level 1 or level 2 depository institution';
(2) by striking subsection (e) and inserting the following new subsection:
`(e) ADDITIONAL RESTRICTIONS- The Corporation may, by regulation or order,
impose--
`(1) such additional restrictions on the acceptance of brokered deposits
by any troubled institution as the Corporation may determine to be
appropriate; and
`(2) such restrictions or limitations as the Corporation may determine to
be appropriate on the acceptance, renewal, or rollover of funds obtained,
directly or indirectly, through any deposit broker by any insured depository
institution which the Corporation determines--
`(A) has suffered a material decline in capital so as to constitute a
threat to the institution's solvency;
`(B) has knowingly or willfully violated any cease and desist order issued
to the institution by the appropriate Federal banking agency, or any
written agreement entered into between the institution and such agency,
which relates to the safety or soundness of the institution; or
`(C) has failed to comply with any applicable reporting or notification
requirements imposed by the Corporation with respect to the acceptance of
brokered deposits by an insured depository institution.';
(3) by redesignating subsections (f) and (g) as subsections (g) and (h),
respectively, and inserting after subsection (e) (as amended by paragraph
(2) of this section) the following new subsection:
`(f) DEPOSIT SOLICITATION RESTRICTED- An insured depository institution which
does not meet the institution's applicable minimum capital requirements,
or an employee of any such institution, shall not engage, directly or
indirectly, in the solicitation of deposits by offering rates of interest
(with respect to such deposits) which are significantly higher than the
prevailing rates of interest on comparable deposits offered by other
insured depository institutions in such institution's normal market areas.';
(4) in paragraph (4)(A) of subsection (g) (as so redesignated by paragraph
(3) of this subsection) by striking `exclusively'; and
(5) by striking subsection (h) (as so redesignated by paragraph (3) of
this subsection) and inserting the following new subsection:
`(h) TROUBLED INSTITUTION DEFINED- For purposes of this section, the term
`troubled institution' means any insured depository institution which--
`(1) does not meet the minimum capital requirements applicable with respect
to such institution;
`(2) based on the most recent report of condition, report of examination,
or inspection of such institution, has been assigned a CAMEL composite
rating of 4 or 5 under the Uniform Financial Institutions Rating System
or an equivalent rating under a comparable system; or
`(3) has been informed in writing by the appropriate Federal banking agency
that, on the basis of the institution's financial condition, the institution
has been designated a `troubled institution' for purposes of this section.'.
(b) CLERICAL AMENDMENT- The heading for section 29 of the Federal Deposit
Insurance Corporation is amended to read as follows:
`SEC. 29. BROKERED DEPOSITS AND DEPOSIT SOLICITATIONS.'.

2ff126d8392cca0302e7fced9955dc18ef1d24a73ef61b0322ff71a23c2bdb7c

(a) ASSESSMENT RATES-
(1) MAXIMUM RATE- Section 7(b)(1)(C) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(1)(C)) is amended--
(A) in clause (i), by striking `the greater of 0.15 percent or'; and
(B) by inserting after clause (iii), the following new clause:
`(iv) Until the Corporation establishes a risk-based assessment system
pursuant to paragraph (8), the annual assessment rate for Bank Insurance
Fund members shall not be less than 0.15 percent.'.
(2) USE OF ESTIMATES AND PROJECTIONS- Section 7(b)(2) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended--
(A) by redesignating subparagraph (B) as subparagraph (C); and
(B) by inserting after subparagraph (A) the following new subparagraph:
`(B) USE OF ESTIMATES AND PROJECTIONS-
`(i) AUTHORITY TO COMPUTE RATES- The Corporation may make and use such
estimates and projections as may be appropriate for computing assessment
rates to be paid by Bank Insurance Fund members and Savings Association
Insurance Fund members.
`(ii) AUTHORITY TO SET RATES- The Corporation may--
`(I) set any assessment rate for Bank Insurance Fund members; and
`(II) after December 31, 1997, set any assessment rate for Savings
Association Insurance Fund members.'.
(3) REVISION OF ASSESSMENT BASE- Section 7(b)(3) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(b)(3)) is amended to read as follows:
`(3) AVERAGE ASSESSMENT BASE- The average assessment base for any insured
depository institution for any semiannual period shall be the average of such
depository institution's assessment base for each of the following 2 dates:
`(A) the 1st of the 2 dates falling within such semiannual period for which
the depository institution is required to submit reports of condition
pursuant to subsection (a)(3) (hereafter in this section referred to as
`reports of condition'); and
`(B) the 2nd of the 2 dates falling within the semiannual period immediately
preceding such semiannual period for which the depository institution is
required to submit reports of condition.'.
(b) RISK-BASED ASSESSMENTS- Section 7(b) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(b)) (as amended by this section and sections 103(b)
and 232(b)(2) of this Act) is amended by redesignating paragraphs (8), (9),
(10), and (11) as paragraphs (9), (10), (11), and (12) and by inserting
after paragraph (7) (as added by section 103(b) of this Act) the following
new paragraph:
`(8) RISK-BASED ASSESSMENTS-
`(A) IN GENERAL- Subject to paragraph (1), the Board of Directors shall,
by regulation, establish a risk-based assessment system for insured
depository institutions.
`(B) RISK-BASED ASSESSMENT SYSTEM DEFINED- For purposes of this paragraph,
the term `risk-based assessment system' means a system under which the
assessment rate determined for each insured depository institution is
based on the risk that the institution poses to the appropriate deposit
insurance fund.
`(C) PROVISIONS APPLICABLE TO ESTABLISHMENT OF SYSTEM- In establishing a
risk-based assessment system, the Board of Directors may use the following
criteria:
`(i) The ratio of capital to assets of the insured depository institution,
all members of the appropriate deposit insurance fund, or any group of
such members.
`(ii) The activities conducted by the insured depository institution,
all members of the appropriate deposit insurance fund, or any group of
such members.
`(iii) The assets and liabilities of the insured depository institution,
all members of the appropriate deposit insurance fund, or any group of
such members.
`(iv) Such other circumstances, conditions, activities or risk factors
which the Board of Directors determines to be appropriate.'.
(c) REGULATIONS-
(1) IN GENERAL- Before the end of the 18-month period beginning on the date
of the enactment of this Act, the Board of Directors of the Federal Deposit
Insurance Corporation shall prescribe the final regulations required by
section 7(b)(8) of the Federal Deposit Insurance Act (as added by subsection
(b) of this section).
(2) EFFECTIVE DATE- Such regulations shall take effect before the end of
the 12-month period beginning on the date such regulations are published
in final form.
(d) MORTGAGE LENDING SAFEGUARDS-
(1) ANALYSIS- Before the end of the 12-month period beginning on the
date of the enactment of this Act, the Board of Directors of the Federal
Deposit Insurance Corporation shall analyze the impact of such system on
the following categories of lending:
(A) Single family mortgages.
(B) Single family mortgages located in low- and moderate-income census
tracts.
(C) Nonconforming single family mortgages.
(D) Multifamily mortgages.
(E) Construction lending for--
(i) single family homes;
(ii) single family homes located in low- and moderate-income census tracts;
(iii) nonconforming single family homes; and
(iv) multifamily homes.
(F) Small business loans.
(2) REPORT- Before the issuance of final regulations implementing the
risk-based assessment system established pursuant to the amendments made
by subsection (b), the Board of Directors of the Federal Deposit Insurance
Corporation shall submit to the Congress a report describing the findings
of the analysis required under paragraph (1).
(e) PUBLIC HEARING- Before the issuance of final regulations implementing
the risk-based assessment system established pursuant to the amendments made
by subsection (b), the Board of Directors of the Federal Deposit Insurance
Corporation shall hold at least 1 public hearing regarding that system.
(f) 2-YEAR REVIEW- Before the end of the 2-year period beginning on the
effective date of final regulations implementing the risk-based assessment
system established pursuant to the amendments made by subsection (b),
the Board of Directors of the Federal Deposit Insurance Corporation shall--
(1) using data collected from examinations of insured depository
institutions, analyze the impact of the risk-based assessment system on
the categories of lending described in subsection (d)(1); and
(2) submit to the Congress a report on the findings of that analysis,
including recommendations for any legislation needed to ensure that the
risk-based assessment system does not have an inequitable impact on those
categories of lending.

da5f02ff1f06d9f94d8095b87ba3383dfb044c9a6e4b277c7a3ab3c7a77b2653

(a) IN GENERAL- The Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.) is amended by inserting after section 23 the following new section:
`SEC. 24. ACTIVITIES OF INSURED STATE BANKS.
`(a) IN GENERAL- After the end of the 1-year period beginning on the date
of the enactment of the Federal Deposit Insurance Corporation Improvement
Act of 1991, an insured State bank may not engage as principal in any type
of activity that is not permissible for a national bank unless--
`(1) the Corporation has determined that the activity would pose no
significant risk to the appropriate deposit insurance fund; and
`(2) the State bank is, and continues to be, in compliance with applicable
capital standards prescribed by the appropriate Federal banking agency.
`(b) INSURANCE UNDERWRITING- Notwithstanding subsection (a), an insured
State bank may not engage in insurance underwriting except to the extent
that activity is permissible for national banks.
`(c) EQUITY INVESTMENTS BY INSURED STATE BANKS-
`(1) IN GENERAL- An insured State bank may not, directly or indirectly,
acquire or retain any equity investment of a type that is not permissible
for a national bank.
`(2) EXCEPTION FOR CERTAIN SUBSIDIARIES- Paragraph (1) shall not prohibit
an insured State bank from acquiring or retaining an equity investment in
a subsidiary of which the insured State bank is a majority owner.
`(3) EXCEPTION FOR QUALIFIED HOUSING PROJECTS-
`(A) EXCEPTION- Notwithstanding any other provision of this subsection,
an insured State bank may invest as a limited partner in a partnership, the
sole purpose of which is direct or indirect investment in the acquisition,
rehabilitation, or new construction of a qualified housing project.
`(B) LIMITATION- The aggregate of the investments of any insured State
bank pursuant to this paragraph shall not exceed 2 percent of the total
assets of the bank.
`(C) QUALIFIED HOUSING PROJECT DEFINED- As used in this paragraph--
`(i) QUALIFIED HOUSING PROJECT- The term `qualified housing project' means
residential real estate that is intended to primarily benefit lower income
people throughout the period of the investment.
`(ii) LOWER INCOME- The term `lower income' means income that is less than or
equal to the median income based on statistics from State or Federal sources.
`(4) TRANSITION RULE-
`(A) IN GENERAL- The Corporation shall require any insured State bank to
divest any equity investment the retention of which is not permissible
under this subsection as quickly as can be prudently done, and in any event
before the end of the 5-year period beginning on the date of the enactment
of the Federal Deposit Insurance Corporation Improvement Act of 1991.
`(B) TREATMENT OF NONCOMPLIANCE DURING DIVESTMENT- With respect to any
equity investment held by any insured State bank on the date of enactment
of the Federal Deposit Insurance Corporation Improvement Act of 1991 which
was lawfully acquired before such date, the bank shall be deemed not to
be in violation of the prohibition in this subsection on retaining such
investment so long as the bank complies with the applicable requirements
established by the Corporation for divesting such investments.
`(d) SUBSIDIARIES OF INSURED STATE BANKS-
`(1) IN GENERAL- After the end of the 1-year period beginning on the date of
the enactment of the Federal Deposit Insurance Corporation Improvement Act
of 1991, a subsidiary of an insured State bank may not engage as principal
in any type of activity that is not permissible for a subsidiary of a
national bank unless--
`(A) the Corporation has determined that the activity poses no significant
risk to the appropriate deposit insurance fund; and
`(B) the bank is, and continues to be, in compliance with applicable
capital standards prescribed by the appropriate Federal banking agency.
`(2) SECURITIES AND INSURANCE UNDERWRITING PROHIBITED-
`(A) PROHIBITION- Notwithstanding paragraph (1) and any provision of the
Federal Deposit Insurance Corporation Improvement Act of 1991, no subsidiary
of an insured State bank may engage in securities or insurance underwriting
except to the extent such activities are permissible for national banks.
`(B) EXCEPTION- Subparagraph (A) does not apply to a subsidiary of an
insured State bank if--
`(i) the insured State bank was required, before June 1, 1991, to provide
title insurance as a condition of the bank's initial chartering under
State law; and
`(ii) control of the insured State bank has not changed since that date.
`(e) SAVINGS BANK LIFE INSURANCE-
`(1) IN GENERAL- No provision of this Act or the Federal Deposit Insurance
Corporation Improvement Act of 1991 shall be construed as prohibiting
or impairing the sale or underwriting of savings bank life insurance,
or the ownership of stock in a savings bank life insurance company, by
any insured bank which--
`(A) is located in the Commonwealth of Massachusetts or the State of New
York or Connecticut; and
`(B) meets the consumer disclosure requirements under section 18(k) with
respect to such insurance.
`(2) FDIC FINDING AND ACTION REGARDING RISK-
`(A) FINDING- Before the end of the 1-year period beginning on the date of
the enactment of the Federal Deposit Insurance Corporation Improvement Act
of 1991, the Corporation shall make a finding whether savings bank life
insurance activities of insured banks pose or may pose any significant
risk to the insurance fund of which such banks are members.
`(B) ACTIONS-
`(i) IN GENERAL- The Corporation shall, pursuant to any finding made under
subparagraph (A), take appropriate actions to address any risk that exists
or may subsequently develop with respect to insured banks described in
paragraph (1)(A).
`(ii) AUTHORIZED ACTIONS- Actions the Corporation may take under this
subparagraph include requiring the modification, suspension, or termination
of insurance activities conducted by any insured bank if the Corporation
finds that the activities pose a significant risk to any insured bank
described in paragraph (1)(A) or to the insurance fund of which such bank
is a member.
`(f) CURRENTLY PERMITTED EQUITY INVESTMENTS-
`(1) IN GENERAL- An insured State bank shall not acquire or retain,
directly or indirectly, any equity investment of a type or in an amount
that is not permissible for a national bank.
`(2) EXCEPTION- Notwithstanding paragraph (1) or any limitation or
prohibition otherwise imposed by any provision of law exclusively relating
to banks, an insured State bank in a State which permits investments
described in paragraph (1) as of September 30, 1991, may invest not more
than 10 percent of the bank's total assets in--
`(A) common or preferred stock listed on a national securities exchange
(except that not more than 0.5 percent of the bank's total assets may be
invested in common or preferred stock of any 1 company); or
`(B) shares of an investment company registered under the Investment
Company Act of 1940.
`(3) NOTICE OF PARAGRAPH (2) ACTIVITIES- An insured State bank may only
engage in any investment activity pursuant to paragraph (2) if--
`(A) the insured State bank has filed a 1-time notice with the Corporation
of the bank's intent to acquire or retain such investments; and
`(B) pursuant to such notice, the Corporation has not determined, within 60
days of receiving such notice, that acquiring or retaining such investments
poses a significant risk to the Bank Insurance Fund.
`(5) DIVESTITURE OF INVESTMENTS- The Corporation may require divestiture
by an insured State bank of any investment permitted under this subsection
if the Corporation determines that such investment will have an adverse
effect on the safety and soundness of such bank.
`(6) FDIC FINDINGS AND ACTION REGARDING RISK-
`(A) FINDING- Before the end of the 1-year period beginning on the date
of enactment of the Federal Deposit Insurance Corporation Improvement
Act of 1991, the Corporation shall make a finding whether such equity
investments by insured State banks pose or may pose any significant risk
to the insurance fund of which such banks are members.
`(B) ACTIONS-
`(i) IN GENERAL- The Corporation shall, pursuant to any finding made under
subparagraph (A), take appropriate actions to address any risk that exists
or may subsequently develop with respect to insured banks described in
paragraph (1).
`(ii) AUTHORIZED ACTIONS- Actions the Corporation may take under this
subparagraph include requiring the modification, suspension, or termination
of such equity investments conducted by any insured State bank if the
Corporation finds that the activities pose a significant risk to any
insured bank described in paragraph (1) or to the insurance fund of which
such bank is a member.
`(g) DETERMINATIONS- The Corporation shall make determinations under this
section by regulation or order.
`(h) ACTIVITY DEFINED- For purposes of this section, the term `activity'
includes acquiring or retaining any investment.
`(i) OTHER AUTHORITY NOT AFFECTED- This section shall not be construed as
limiting the authority of any appropriate Federal banking agency or any
State supervisory authority to impose more stringent restrictions.'.
(b) TECHNICAL AND CONFORMING AMENDMENT- The 13th undesignated paragraph of
section 9 of the Federal Reserve Act (12 U.S.C. 330) is amended by striking
`: Provided, however, That no Federal reserve bank' and inserting `, except
that the Board of Governors of the Federal Reserve System may limit the
activities of State member banks and subsidiaries of State member banks
in a manner consistent with section 24 of the Federal Deposit Insurance
Act. No Federal reserve bank'.

e318c8191c9542261989e52fc9854c9daf6d77d26bfa350635e3d4e0b5f6f390

(a) RESTRICTIONS ON REAL ESTATE LENDING ESTABLISHED- The Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.) is amended by inserting after
section 39 (as added by section 229 of this Act) the following new section:
`SEC. 40. REAL ESTATE LENDING.
`(a) UNIFORM REGULATIONS- The appropriate Federal banking agencies shall
jointly adopt uniform regulations prescribing standards for loans or
extensions of credit by insured depository institutions that are--
`(1) secured by liens on, interests in, or liens on interests in unimproved
real estate, or
`(2) made for the purpose of financing the construction of a building or
buildings or other improvements to real estate.
`(b) STANDARDS-
`(1) CRITERIA- In prescribing standards pursuant to subsection (a) for
loans or extensions of credit described in such subsection, the agencies
shall consider--
`(A) the risk presented to the Bank Insurance Fund or the Savings Association
Insurance Fund, as the case may be, by such loans or extensions of credit;
`(B) the safe and sound operation of insured depository institutions; and
`(C) the availability of credit.
`(2) VARIATIONS PERMITTED- In prescribing the standards referred to in
paragraph (1), the agencies may jointly provide for differentiations among
insured depository institutions and among types of loans to such extent
and in such manner as may be--
`(A) required by Federal law;
`(B) warranted on the basis of risk to the deposit insurance funds; or
`(C) warranted on the basis of the safety and soundness of the institutions.
`(3) LOAN EVALUATION STANDARD- No Federal financial regulatory agency shall
adversely evaluate an investment or a loan made by a federally insured
depository institution, or consider such a loan to be nonperforming,
solely because the loan is made to or the investment is in commercial,
residential, or industrial property.'.
(b) EFFECTIVE DATE- The regulations prescribed pursuant to the amendment
made by subsection (a) shall take effect before the end of the 12-month
period beginning on the date of the enactment of this Act.

3569f5b2b930ff929d119664bd906c074bfd960116fced23a3713b87fe7aa83c

(a) IN GENERAL- The appropriate Federal banking agencies shall develop
a system to monitor interest rate risk and to adjust risk-based capital
standards to reflect interest rate risk.
(b) IMPLEMENTING REGULATIONS- In order to implement the system required under
subsection (a), the appropriate Federal banking agencies shall prescribe
regulations in final form before the end of the 1-year period beginning on
the date of the enactment of this Act. Such regulations shall take effect
before the end of the 2-year period beginning on such date of enactment.

8aaa659c22db916ffc09f5b9b3594e23c0984d2fe7de13c047b776003e01a4cf

Section 5(t)(5)(D) of the Home Owners Loan Act (12 U.S.C. 1464(t)(5)(D))
is amended by striking `for a national bank,' and inserting `for a national
bank or if such impermissible activities were commenced after April 12,
1989, and before August 9, 1989, by a savings association with assets of
less than $400,000,000 and were made in residential real estate or land
held for development as residential real estate,'.

e9116e5170d559cd253bf1ce19c539fdc96e78ac65850b29a78c0aabba269c25

Section 8(t) of the Federal Deposit Insurance Act (12 U.S.C. 1818(t))
is amended to read as follows:
`(t) AUTHORITY OF BOARD TO TAKE ENFORCEMENT ACTION AGAINST INSURED DEPOSITORY
INSTITUTIONS AND INSTITUTION-AFFILIATED PARTIES-
`(1) AUTHORITY TO RECOMMEND THAT APPROPRIATE FEDERAL BANKING AGENCY TAKE
ENFORCEMENT ACTION- The Corporation, based on an examination of an insured
depository institution by the Corporation or the appropriate Federal banking
agency or on other information, may recommend that the appropriate Federal
banking agency take any enforcement action authorized under this section
or section 7(j) or 18(j) with respect to any insured depository institution
or any institution-affiliated party.
`(2) AUTHORITY OF BOARD TO DIRECT ENFORCEMENT ACTION BE TAKEN IF APPROPRIATE
FEDERAL BANKING AGENCY FAILS TO FOLLOW RECOMMENDATION-
`(A) IN GENERAL- If the appropriate Federal banking agency fails to take
the recommended action, or to provide an acceptable plan for addressing the
concerns of the Corporation set forth in the Corporation's recommendation,
before the end of the 60-day period beginning on the date of the receipt
of the formal recommendation from the Corporation, the Board of Directors
may direct the Corporation to take such action if the Board of Directors
determines that--
`(i) the insured depository institution is in an unsafe or unsound condition;
`(ii) failure to take the recommended action will result in continuance
of unsafe or unsound practices in conducting the business of the insured
depository institution; or
`(iii) the violation or threatened violation, or threatened practices
or omission, or continuation of practices, or omissions may cause, or is
likely to cause, a risk of loss to the appropriate insurance fund, or may
prejudice the interests of depositors of the institution.
`(B) ENFORCEMENT POWERS- In the exercise of any authority under this
subsection at the direction of the Board of Directors--
`(i) the Corporation shall have the same powers with respect to any insured
depository institution and any subsidiary or affiliate of the institution as
the appropriate Federal banking agency has with respect to such institution,
subsidiary, or affiliate; and
`(ii) the institution and any subsidiary or affiliate of the institution
shall have the same duties and obligations with respect to the Corporation
as the institution, subsidiary, or affiliate has with respect to the
appropriate Federal banking agency.
`(3) EFFECT OF EXIGENT CIRCUMSTANCES-
`(A) AUTHORITY TO ACT- Notwithstanding paragraphs (1) and (2), the Board
of Directors may direct the Corporation to exercise the Corporation's
authority under this subsection before the end of the 60-day period
described in paragraph (2)(A) in exigent circumstances after notifying
the appropriate Federal banking agency.
`(B) AGREEMENT ON EXIGENT CIRCUMSTANCES- The Board of Directors shall, by
agreement with the other appropriate Federal banking agencies, establish
and publish a description of the exigent circumstances under which the
Board of Directors may direct the Corporation to act under this subsection
without regard to the 60-day period described in paragraph (2)(A).
`(4) REQUESTS FOR FORMAL ACTIONS AND INVESTIGATIONS-
`(A) SUBMISSION OF REQUESTS- Whenever a regional office or regional bank
of an appropriate Federal banking agency submits a request for a formal
investigation or enforcement action, such regional office or regional
bank shall concurrently submit the request to the head of the appropriate
Federal banking agency and the Corporation.
`(B) AGENCIES REQUIRED TO REPORT ON REQUESTS- Each appropriate Federal
banking agency shall report semiannually to the Corporation the status
or disposition of all such requests, including the reasons for the
appropriate Federal banking agency's decision to either approve or deny
all such requests.
`(5) NONDELEGATION- The authority of the Board of Directors to make any
determination or to direct the Corporation to take any action under this
subsection may not be delegated.'.
Subtitle B--Coverage

139ac12575b31ccc582047bfe51b4884f92b646fd29e00234ecb9824993b5e4d

(a) EXCLUSION OF CERTAIN OBLIGATIONS FROM DEPOSIT INSURANCE COVERAGE-
(1) IN GENERAL- Section 11(a) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)) is amended by adding at the end the following new paragraph:
`(8) CERTAIN INVESTMENT CONTRACTS NOT TREATED AS INSURED DEPOSITS-
`(A) IN GENERAL- A liability of an insured depository institution shall
not be treated as an insured deposit if the liability arises under any
insured depository institution investment contract between any insured
depository institution and any employee benefit plan which expressly
permits benefit-responsive withdrawals or transfers.
`(B) DEFINITIONS- For purposes of subparagraph (A)--
`(i) BENEFIT-RESPONSIVE WITHDRAWALS OR TRANSFERS- The term
`benefit-responsive withdrawals or transfers' means any withdrawal or
transfer of funds (consisting of any portion of the principal and any
interest credited at a rate guaranteed by the insured depository institution
investment contract) during the period in which any guaranteed rate is
in effect, without substantial penalty or adjustment, to pay benefits
provided by the employee benefit plan or to permit a plan participant or
beneficiary to redirect the investment of his or her account balance.
`(ii) EMPLOYEE BENEFIT PLAN- The term `employee benefit plan'--
`(I) has the meaning given to such term in section 3(3) of the Employee
Retirement Income Security Act of 1974; and
`(II) includes any plan described in section 401(d) of the Internal Revenue
Code of 1986.'.
(2) EXCLUSION OF OBLIGATIONS FROM TREATMENT AS DEPOSITS FOR OTHER PURPOSES-
Section 7(b)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(6))
is amended--
(A) by striking `and' at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C) and inserting
`; and'; and
(C) by adding at the end the following new subparagraph:
`(D) any liability of the insured depository institution which is not
treated as an insured deposit pursuant to section 11(a)(8).'.
(b) INSURANCE OF DEPOSITS-
(1) INSURED AMOUNTS PAYABLE- Section 11(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)) (as amended by subsection (a)(1) of this section)
is amended by striking `(a)(1)' and all that follows through paragraph
(1) and inserting the following:
`(a) DEPOSIT INSURANCE-
`(1) INSURED AMOUNTS PAYABLE-
`(A) IN GENERAL- The Corporation shall insure the deposits of all insured
depository institutions as provided in this Act.
`(B) NET AMOUNT OF INSURED DEPOSIT- The net amount due to any depositor at
an insured depository institution shall not exceed $100,000 as determined
in accordance with subparagraphs (C) and (D).
`(C) AGGREGATION OF DEPOSITS- For the purpose of determining the net amount
due to any depositor under subparagraph (B), the Corporation shall aggregate
the amounts of all deposits in the insured depository institution which
are maintained by a depositor in the same capacity and the same right for
the benefit of the depositor either in the name of the depositor or in the
name of any other person, other than any amount in a trust fund described
in section 7(i)(1).
`(D) COVERAGE ON PRO RATA OR `PASS-THROUGH' BASIS-
`(i) IN GENERAL- Except as provided in clause (ii), for the purpose of
determining the amount of insurance due under subparagraph (B), the
Corporation shall provide deposit insurance coverage with respect to
deposits accepted by any insured depository institution on a pro rata or
`pass-through' basis to a participant in or beneficiary of an employee
benefit plan (as defined in section 11(a)(8)(B)(ii)), including any eligible
deferred compensation plan described in section 457 of the Internal Revenue
Code of 1986.
`(ii) EXCEPTION- After the end of the 1-year period beginning on the date of
the enactment of the Federal Deposit Insurance Corporation Improvement Act
of 1991, the Corporation shall not provide insurance coverage on a pro rata
or `pass-through' basis pursuant to clause (i) with respect to deposits
accepted by any insured depository institution which, at the time such
deposits are accepted, may not accept brokered deposits under section 29.
`(iii) COVERAGE UNDER CERTAIN CIRCUMSTANCES- Clause (ii) shall not apply
with respect to any deposit accepted by an insured depository institution
described in such clause if, at the time the deposit is accepted--
`(I) the institution meets each applicable capital standard; and
`(II) the depositor receives a written statement from the institution that
such deposits at such institution are eligible for insurance coverage on
a pro rata or `pass-through' basis.'.
(2) CERTAIN RETIREMENT ACCOUNTS- Section 11(a)(3) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(3)) is amended to read as follows:
`(3) CERTAIN RETIREMENT ACCOUNTS-
`(A) IN GENERAL- Notwithstanding any limitation in this Act relating to the
amount of deposit insurance available for the account of any 1 depositor,
deposits in an insured depository institution made in connection with--
`(i) any individual retirement account described in section 408(a) of the
Internal Revenue Code of 1986;
`(ii) subject to the exception contained in paragraph (1)(D)(ii), any
eligible deferred compensation plan described in section 457 of such
Code; and
`(iii) any individual account plan defined in section 3(34) of the Employee
Retirement Income Security Act, and any plan described in section 401(d)
of the Internal Revenue Code of 1986, to the extent that participants and
beneficiaries under such plan have the right to direct the investment of
assets held in individual accounts maintained on their behalf by the plan,
shall be aggregated and insured in an amount not to exceed $100,000 per
participant per insured depository institution.
`(B) AMOUNTS TAKEN INTO ACCOUNT- For purposes of subparagraph (A), the amount
aggregated for insurance coverage under this paragraph shall consist of the
present vested and ascertainable interest of each participant under the plan,
excluding any remainder interest created by, or as a result of, the plan.'.
(3) CERTAIN TRUST FUNDS- Section 7(i) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(i)) is amended to read as follows:
`(i) INSURANCE OF TRUST FUNDS-
`(1) IN GENERAL- Trust funds held on deposit by an insured depository
institution in a fiduciary capacity as trustee pursuant to any irrevocable
trust established pursuant to any statute or written trust agreement shall
be insured in an amount not to exceed $100,000 for each trust estate.
`(2) INTERBANK DEPOSITS- Trust funds described in paragraph (1) which
are deposited by the fiduciary depository institution in another insured
depository institution shall be similarly insured to the fiduciary depository
institution according to the trust estates represented.
`(3) REGULATIONS- The Board of Directors may prescribe such regulations as
may be necessary to clarify the insurance coverage under this subsection
and to prescribe the manner of reporting and depositing such trust funds.'.
(4) EXPANDED COVERAGE BY REGULATION-
(A) REVIEW OF COVERAGE- For the purpose of prescribing regulations, during
the 1-year period beginning on the date of the enactment of this Act,
the Board of Directors shall review the capacities and rights in which
deposit accounts are maintained and for which deposit insurance coverage
is provided by the Corporation.
(B) REGULATIONS-  After the end of the 1-year period referred to in
subparagraph (A), the Board of Directors may prescribe regulations that
provide for separate insurance coverage for the different capacities and
rights in which deposit accounts are maintained if a determination is
made by the Board of Directors that such separate insurance coverage is
consistent with--
(i) the purpose of protecting small depositors and limiting the undue
expansion of deposit insurance coverage; and
(ii) the insurance provisions of the Federal Deposit Insurance Act.
(C) DELAYED EFFECTIVE DATE FOR REGULATIONS- No regulation prescribed under
subparagraph (B) may take effect before the 2-year period beginning on
the date of the enactment of this Act.
(5) TECHNICAL AND CONFORMING AMENDMENTS-
(A) Section 3(m) of the Federal Deposit Insurance Act (12 U.S.C. 1813(m))
is amended by striking `(m)(1)' and all that follows through paragraph
(1) and inserting the following:
`(m) INSURED DEPOSIT-
`(1) IN GENERAL- Subject to paragraph (2), the term `insured deposit'
means the net amount due to any depositor for deposits in an insured
depository institution as determined under sections 7(i) and 11(a).'.
(B) Section 11(a)(2)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)(2)(A)) is amended by striking `his deposit shall be insured'
and inserting `such depositor shall, for the purpose of determining the
amount of insured deposits under this subsection, be deemed a depositor
in such custodial capacity separate and distinct from any other officer,
employee, or agent of the United States or any public unit referred to
in clause (ii), (iii), (iv), or (v) and the deposit of any such depositor
shall be insured in an amount not to exceed $100,000 per account'.
(C) The 2d subparagraph of section 11(a)(2) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(a)(2)) is amended by striking `(b)' and inserting `(B)'.
(c) EFFECTIVE DATE-
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by subsection (a) and paragraphs (2) and (3) of subsection (b) shall
take effect at the end of the 2-year period beginning on the date of the
enactment of this Act.
(2) APPLICATION TO TIME DEPOSITS-
(A) CERTAIN DEPOSITS EXCLUDED- Except with respect to the amendment
referred to in paragraph (3), the amendments made by subsections (a) and
(b) shall not apply to any time deposit which--
(i) was made before the date of enactment of this Act; and
(ii) matures after the end of the 2-year period referred to in paragraph (1).
(B) ROLLOVERS AND RENEWALS TREATED AS NEW DEPOSIT- Any renewal or rollover
of a time deposit described in subparagraph (A) after the date of the
enactment of this Act shall be treated as a new deposit which is not
described in such subparagraph.
(3) EFFECTIVE DATE FOR AMENDMENT RELATING TO CERTAIN EMPLOYEE PLANS-
(A) Section 11(a)(1)(B) of the Federal Deposit Insurance Act (as amended
by subsection (b)(1) of this section) shall take effect on the earlier of--
(i) the date of the enactment of this Act; or
(ii) January 1, 1992.
(B) Section 11(a)(3)(A) of the Federal Deposit Insurance Act (as amended
by subsection (b)(2) of this section) shall take effect on the earlier
of the dates described in clauses (i) and (ii) of subparagraph (A) with
respect to plans described in clause (ii) of such section.
(d) INFORMATIONAL STUDY-
(1) IN GENERAL- The Federal Deposit Insurance Corporation, in conjunction
with such consultants and technical experts as the Corporation determines
to be appropriate, shall conduct a study of the cost and feasibility of
tracking the insured and uninsured deposits of any individual and the
exposure, under any Act of Congress or any regulation of any appropriate
Federal banking agency, of the Federal Government with respect to all
insured depository institutions.
(2) ANALYSIS OF COSTS AND BENEFITS- The study under paragraph (1) shall
include detailed, technical analysis of the costs and benefits associated
with the least expensive way to implement the system.
(3) SPECIFIC FACTORS TO BE STUDIED- As part of the study under paragraph
(1), the Corporation shall investigate, review, and evaluate--
(A) the data systems that would be required to track deposits in all
insured depository institutions;
(B) the reporting burdens of such tracking on individual depository
institutions;
(C) the systems which exist or which would be required to be developed to
aggregate such data on an accurate basis;
(D) the implications such tracking would have for individual privacy; and
(E) the manner in which systems would be administered and enforced.
(4) FEDERAL RESERVE BOARD SURVEY- As part of the informational study required
under paragraph (1), the Board of Governors of the Federal Reserve System
shall conduct, in conjunction with other Federal departments and agencies
as necessary, a survey of the ownership of deposits held by individuals
including the dollar amount of deposits held, the type of deposit accounts
held, and the type of financial institutions in which the deposit accounts
are held.
(5) ANALYSIS BY FDIC- The results of the survey under paragraph (4) shall
be provided to the Federal Deposit Insurance Corporation before the end
of the 1-year period beginning on the date of the enactment of this Act
for analysis and inclusion in the informational study.
(6) REPORT TO CONGRESS- Before the end of the 18-month period beginning
on the date of the enactment of this Act, the Federal Deposit Insurance
Corporation shall submit to the Congress a report containing a detailed
statement of findings made and conclusions drawn from the study conducted
under this section, including such recommendations for administrative and
legislative action as the Corporation determines to be appropriate.

f6e19fa8189bd0cbe7b9bd56675c18e404c58c232834dd556a4cdf1debc6263c

The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended
by inserting after section 40 (as added by section 304 of this title)
the following new section:
`SEC. 41. PAYMENTS ON FOREIGN DEPOSITS PROHIBITED.
`Notwithstanding any other provision of law, the Corporation, the Board of
Governors of the Federal Reserve System, the Resolution Trust Corporation,
any other agency, department, and instrumentality of the United States,
and any corporation owned or controlled by the United States may not,
directly or indirectly, make any payment or provide any assistance,
guarantee, or transfer under this Act or any other provision of law in
connection with any insured depository institution which would have the
direct or indirect effect of satisfying, in whole or in part, any claim
against the institution for obligations of the institution which would
constitute deposits as defined in section 3(l) but for subparagraphs (A)
and (B) of section 3(l)(5).'.

2021c49012b94b7ebd7e8360d12e60c66ff6f092d93c5a122e1e9159a9b346e1

(a) INSURED DEPOSITORY INSTITUTIONS- Section 7(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(c)) is amended by adding at the end the
following new paragraph:
`(5) Penalty for failure to make accurate certified statement-
`(A) FIRST TIER- Any insured depository institution which--
`(i) maintains procedures reasonably adapted to avoid any inadvertent error
and, unintentionally and as a result of such an error, fails to submit
the certified statement under paragraph (1) or (2) within the period of
time required under paragraph (1) or (2) or submits a false or misleading
certified statement; or
`(ii) submits the statement at a time which is minimally after the time
required in such paragraph,
shall be subject to a penalty of not more than $2,000 for each day during
which such failure continues or such false and misleading information is not
corrected. The institution shall have the burden of proving that an error
was inadvertent or that a statement was inadvertently submitted late.
`(B) SECOND TIER- Any insured depository institution which fails to submit
the certified statement under paragraph (1) or (2) within the period of
time required under paragraph (1) or (2) or submits a false or misleading
certified statement in a manner not described in subparagraph (A) shall be
subject to a penalty of not more than $20,000 for each day during which such
failure continues or such false and misleading information is not corrected.
`(C) THIRD TIER- Notwithstanding subparagraphs (A) and (B), if any
insured depository institution knowingly or with reckless disregard for
the accuracy of any certified statement described in paragraph (1) or (2)
submits a false or misleading certified statement under paragraph (1) or
(2), the Corporation may assess a penalty of not more than $1,000,000 or
not more than 1 percent of the total assets of the institution, whichever
is less, per day for each day during which the failure continues or the
false or misleading information in such statement is not corrected.
`(D) ASSESSMENT PROCEDURE- Any penalty imposed under this paragraph shall
be assessed and collected by the Corporation in the manner provided in
subparagraphs (E), (F), (G), and (I) of section 8(i)(2) (for penalties
imposed under such section) and any such assessment (including the
determination of the amount of the penalty) shall be subject to the
provisions of such section.
`(E) HEARING- Any insured depository institution against which any penalty
is assessed under this paragraph shall be afforded an agency hearing if
the institution submits a request for such hearing within 20 days after
the issuance of the notice of the assessment. Section 8(h) shall apply to
any proceeding under this subparagraph.'.
(b) INSURED CREDIT UNIONS- Section 202(d)(2) of the Federal Credit Union
Act (12 U.S.C. 1782(d)(2)) is amended to read as follows:
`(2) PENALTY FOR FAILURE TO MAKE ACCURATE CERTIFIED STATEMENT OR TO PAY
DEPOSIT OR PREMIUM-
`(A) FIRST TIER- Any insured credit union which--
`(i) maintains procedures reasonably adapted to avoid any inadvertent error
and, unintentionally and as a result of such an error, fails to submit
any certified statement under subsection (b)(1) within the period of time
required or submits a false or misleading certified statement under such
subsection; or
`(ii) submits the statement at a time which is minimally after the time
required,
shall be subject to a penalty of not more than $2,000 for each day during
which such failure continues or such false and misleading information is not
corrected. The insured credit union shall have the burden of proving that
an error was inadvertent or that a statement was inadvertently submitted late.
`(B) SECOND TIER- Any insured credit union which--
`(i) fails to submit any certified statement under subsection (b)(1)
within the period of time required or submits a false or misleading
certified statement in a manner not described in subparagraph (A); or
`(ii) fails or refuses to pay any deposit or premium for insurance required
under this title,
shall be subject to a penalty of not more than $20,000 for each day during
which such failure continues, such false and misleading information is not
corrected, or such deposit or premium is not paid.
`(C) THIRD TIER- Notwithstanding subparagraphs (A) and (B), if any insured
depository institution knowingly or with reckless disregard for the accuracy
of any certified statement under subsection (b)(1) or submits a false or
misleading certified statement under such subsection, the Corporation may
assess a penalty of not more than $1,000,000 or not more than 1 percent
of the total assets of the institution, whichever is less, per day for
each day during which the failure continues or the false or misleading
information in such statement is not corrected.
`(D) ASSESSMENT PROCEDURE- Any penalty imposed under this paragraph shall
be assessed and collected by the Corporation in the manner provided in
section 206(k)(2) (for penalties imposed under such section) and any such
assessment (including the determination of the amount of the penalty)
shall be subject to the provisions of such section.
`(E) HEARING- Any insured depository institution against which any penalty
is assessed under this paragraph shall be afforded an agency hearing if
the institution submits a request for such hearing within 20 days after
the issuance of the notice of the assessment. Section 206(j) shall apply
to any proceeding under this subparagraph.
`(F) SPECIAL RULE FOR DISPUTED PAYMENTS- No penalty may be assessed for
the failure of any insured credit union to pay any deposit or premium for
insurance if--
`(i) the failure is due to a dispute between the credit union and the
Board over the amount of the deposit or premium which is due from the
credit union; and
`(ii) the credit union deposits security satisfactory to the Board for
payment of the deposit or insurance premium upon final determination of
the dispute.'.
Subtitle C--Demonstration Project and Studies

a2724ed5b132c2eda20bbc31d2b6f66812bcb42d46aeeb85d7891dd2a64eadeb

ACCOUNTS.
(a) STUDY REQUIRED- The Federal Deposit Insurance Corporation shall study
the feasibility of authorizing insured depository institutions to offer
both insured and uninsured deposit accounts to customers.
(b) FACTORS TO CONSIDER- In conducting the study required under subsection
(a), the Corporation shall consider the following factors:
(1) The risk a 2-window deposit system would pose to the deposit insurance
system.
(2) The disclosure standards which would be necessary to prevent customer
confusion over the insured status of deposits and fraudulent or misleading
practices with respect to such insured status.
(3) The extent to which accounting standards would have to be revised
or changed.
(4) The manner in which a 2-window deposit plan could be implemented with
the least disruption to the stability of, and the confidence of consumers
in, the banking system.
(c) REPORT- Before the end of the 6-month period beginning on the date of
the enactment of this Act, the Corporation shall submit a report to the
Congress containing the Corporation's findings and conclusions with respect
to the study under subsection (a) and any recommendations for legislative
or administrative action the Corporation may determine to be appropriate.

17505d8749551288338a3ed366b4d0e7f13126559eabbf079b641c242760e615

(a) STUDY-
(1) IN GENERAL- The Board of Directors of the Federal Deposit Insurance
Corporation, in consultation with the Secretary of the Treasury and
individuals from the private sector with expertise in private insurance,
private reinsurance, depository institutions, or economics, shall conduct
a study of the feasibility of establishing a private reinsurance system.
(2) PROJECT- The study conducted under this subsection shall include a
demonstration project consisting of a simulation, by a sample of private
reinsurers and insured depository institutions, of the activities required
for a private reinsurance system, including--
(A) establishment of a pricing structure for risk-based premiums;
(B) formulation of insurance or reinsurance contracts; and
(C) identification and collection of information necessary to evaluate
and monitor the risks in insured depository institutions.
(3) ACTUAL REINSURANCE TRANSACTIONS- The Federal Deposit Insurance
Corporation may engage in actual reinsurance transactions as part of a
demonstration project conducted under paragraph (2).
(b) REPORT-
(1) IN GENERAL- Before the end of the 18-month period beginning on the date
of the enactment of this Act, the Federal Deposit Insurance Corporation shall
submit to the Congress a report on the study conducted under this section.
(2) CONTENTS- The report under this subsection shall include--
(A) an analysis and review of the project conducted under subsection (a)(2);
(B) conclusions regarding the feasibility of a private reinsurance system;
(C) recommendations regarding whether--
(i) such a system should be restricted to depository institutions over a
certain asset size;
(ii) similar systems are feasible for depository institutions or groups
of depository institutions of a lesser asset size; and
(iii) public policy goals can be satisfied by such systems; and
(D) recommendations for administrative and legislative action that may be
necessary to establish such systems.
Subtitle D--Credit Unions

c8f851fa84d33f6fe3e58755f444b4731c377c7fa843651c07baf3068f9e16c9

(a) AUTHORITY TO LIQUIDATE- Section 207(a)(1) of the Federal Credit Union
Act (12 U.S.C. 1787(a)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (D); and
(2) by inserting after subparagraph (A) the following new subparagraphs:
`(B) APPOINTMENT OF THE BOARD BY THE BOARD- Notwithstanding any other
provision of this Act, any other Federal law, or the law or constitution
of any State, the Board may appoint itself as the liquidating agent of any
State credit union insured under this title, and close such credit union,
if the Board determines that the credit union is insolvent or bankrupt.
`(C) NOTICE AND APPROVAL OF STATE OFFICIAL-
`(i) IN GENERAL- The authority conferred by subparagraph (B) with respect
to any State credit union shall be exercised only with the written approval
of the State official having jurisdiction over such credit union that the
grounds specified for such exercise exist.
`(ii) EXCEPTION- If the approval of the State official having jurisdiction
over any State credit union referred to in clause (i) has not been
received within 30 days of receipt of notice by the State that the Board has
determined such grounds exist, and the Board has responded in writing to the
State's written reasons, if any, for withholding approval, then the Board
may proceed without State approval only by unanimous vote of the Board.'.
(b) TECHNICAL AMENDMENTS-
(1) Subparagraph (D) of section 207(a)(1) of the Federal Credit Union Act
(12 U.S.C. 1787(a)(1)), as so redesignated by subsection (a) of this section,
is amended in the first sentence by striking `(b)' and inserting `(j)'.
(2) Section 207(a)(1)(A) of the Federal Credit Union Act (12
U.S.C. 1787(a)(1)(A)) is amended by striking `himself' and inserting
`itself'.
Subtitle E--FDIC Property Disposition

9471ad9013024134c5cd88ab5897222af18a62b53bc14ffab8e905b407bc4a23

ae72a608709db72467609a16200876166cc33b473f1a53a47398730392dbd3c7

The Congress finds that--
(1) many financial institutions engage daily in thousands of transactions
with other financial institutions directly and through clearing
organizations;
(2) the efficient processing of such transactions is essential to a smoothly
functioning economy;
(3) such transactions can be processed most efficiently if, consistent
with applicable contractual terms, obligations among financial institutions
are netted;
(4) such netting procedures would reduce the systemic risk within the
banking system and financial markets; and
(5) the effectiveness of such netting procedures can be assured only
if they are recognized as valid and legally binding in the event of the
closing of a financial institution participating in the netting procedures.

66cfc02ebc7f08f96a40dbfbd66216eeea05248a61875d1febbbe14ebe42194e

Federal Deposit Insurance Corporation Improvement Act of 1991

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

TITLE V

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