[109th Congress Public Law 351]
[From the U.S. Government Printing Office]
[DOCID: f:publ351.109]
[[Page 1965]]
FINANCIAL SERVICES REGULATORY RELIEF ACT OF 2006
[[Page 120 STAT. 1966]]
Public Law 109-351
109th Congress
An Act
To provide regulatory relief and improve productivity for insured
depository institutions, and for other purposes. <<NOTE: Oct. 13,
2006 - [S. 2856]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Financial
Services Regulatory Relief Act of 2006.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This <<NOTE: 12 USC 1811 note.>> Act may be cited
as the ``Financial Services Regulatory Relief Act of 2006''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--BROKER RELIEF
Sec. 101. Joint rulemaking required for revised definition of broker in
the Securities Exchange Act of 1934.
TITLE II--MONETARY POLICY PROVISIONS
Sec. 201. Authorization for the Federal Reserve to pay interest on
reserves.
Sec. 202. Increased flexibility for the Federal Reserve Board to
establish reserve requirements.
Sec. 203. Effective date.
TITLE III--NATIONAL BANK PROVISIONS
Sec. 301. Voting in shareholder elections.
Sec. 302. Simplifying dividend calculations for national banks.
Sec. 303. Repeal of obsolete limitation on removal authority of the
Comptroller of the Currency.
Sec. 304. Repeal of obsolete provision in the Revised Statutes.
Sec. 305. Enhancing the authority for banks to make community
development investments.
TITLE IV--SAVINGS ASSOCIATION PROVISIONS
Sec. 401. Parity for savings associations under the Securities Exchange
Act of 1934 and the Investment Advisers Act of 1940.
Sec. 402. Repeal of overlapping rules governing purchased mortgage
servicing rights.
Sec. 403. Clarifying citizenship of Federal savings associations for
Federal court jurisdiction.
Sec. 404. Repeal of limitation on loans to one borrower.
TITLE V--CREDIT UNION PROVISIONS
Sec. 501. Leases of land on Federal facilities for credit unions.
Sec. 502. Increase in general 12-year limitation of term of Federal
credit union loans to 15 years.
Sec. 503. Check cashing and money transfer services offered within the
field of membership.
Sec. 504. Clarification of definition of net worth under certain
circumstances for purposes of prompt corrective action.
Sec. 505. Amendments relating to nonfederally insured credit unions.
[[Page 120 STAT. 1967]]
TITLE VI--DEPOSITORY INSTITUTION PROVISIONS
Sec. 601. Reporting requirements relating to insider lending.
Sec. 602. Investments by insured savings associations in bank service
companies authorized.
Sec. 603. Authorization for member bank to use pass-through reserve
accounts.
Sec. 604. Streamlining reports of condition.
Sec. 605. Expansion of eligibility for 18-month examination schedule for
community banks.
Sec. 606. Streamlining depository institution merger application
requirements.
Sec. 607. Nonwaiver of privileges.
Sec. 608. Clarification of application requirements for optional
conversion for Federal savings associations.
Sec. 609. Exemption from disclosure of privacy policy for accountants.
Sec. 610. Inflation adjustment for the small depository institution
exception under the Depository Institution Management
Interlocks Act.
Sec. 611. Modification to cross marketing restrictions.
TITLE VII--BANKING AGENCY PROVISIONS
Sec. 701. Statute of limitations for judicial review of appointment of a
receiver for depository institutions.
Sec. 702. Enhancing the safety and soundness of insured depository
institutions.
Sec. 703. Cross guarantee authority.
Sec. 704. Golden parachute authority and nonbank holding companies.
Sec. 705. Amendments relating to change in bank control.
Sec. 706. Amendment to provide the Federal Reserve Board with discretion
concerning the imputation of control of shares of a company
by trustees.
Sec. 707. Interagency data sharing.
Sec. 708. Clarification of extent of suspension, removal, and
prohibition authority of Federal banking agencies in cases of
certain crimes by institution-affiliated parties.
Sec. 709. Protection of confidential information received by Federal
banking regulators from foreign banking supervisors.
Sec. 710. Prohibition on participation by convicted individuals.
Sec. 711. Coordination of State examination authority.
Sec. 712. Deputy Director; succession authority for Director of the
Office of Thrift Supervision.
Sec. 713. Office of Thrift Supervision representation on Basel Committee
on Banking Supervision.
Sec. 714. Federal Financial Institutions Examination Council.
Sec. 715. Technical amendments relating to insured institutions.
Sec. 716. Clarification of enforcement authority.
Sec. 717. Federal banking agency authority to enforce deposit insurance
conditions.
Sec. 718. Receiver or conservator consent requirement.
Sec. 719. Acquisition of FICO scores.
Sec. 720. Elimination of criminal indictments against receiverships.
Sec. 721. Resolution of deposit insurance disputes.
Sec. 722. Recordkeeping.
Sec. 723. Preservation of records.
Sec. 724. Technical amendments to information sharing provision in the
Federal Deposit Insurance Act.
Sec. 725. Technical and conforming amendments relating to banks
operating under the Code of Law for the District of Columbia.
Sec. 726. Technical corrections to the Federal Credit Union Act.
Sec. 727. Repeal of obsolete provisions of the Bank Holding Company Act
of 1956.
Sec. 728. Development of model privacy forms.
TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
Sec. 801. Exception for certain bad check enforcement programs.
Sec. 802. Other amendments.
TITLE IX--CASH MANAGEMENT MODERNIZATION
Sec. 901. Collateral modernization.
TITLE X--STUDIES AND REPORTS
Sec. 1001. Study and report by the Comptroller General on the currency
transaction report filing system.
Sec. 1002. Study and report on institution diversity and consolidation.
[[Page 120 STAT. 1968]]
TITLE I--BROKER RELIEF
SEC. 101. JOINT RULEMAKING REQUIRED FOR REVISED DEFINITION OF BROKER IN
THE SECURITIES EXCHANGE ACT OF 1934.
(a) Final Rules Required.--
(1) Amendment to securities exchange act.--Section 3(a)(4)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)) is
amended by adding at the end the following:
``(F) Joint rulemaking required.--The Commission and
the Board of Governors of the Federal Reserve System
shall jointly adopt a single set of rules or regulations
to implement the exceptions in subparagraph (B).''.
(2) Timing.--Not <<NOTE: Deadline. 15 USC 78c note.>> later
than 180 days after the date of the enactment of this Act, the
Securities and Exchange Commission (in this section referred to
as the ``Commission'') and the Board of Governors of the Federal
Reserve System (hereafter in this section referred to as the
``Board'') shall jointly issue a proposed single set of rules or
regulations to define the term ``broker'' in accordance with
section 3(a)(4) of the Securities Exchange Act of 1934, as
amended by this subsection.
(3) Rulemaking supersedes previous rulemaking.--A final
single set of rules or regulations jointly adopted in accordance
with this section shall supersede any other proposed or final
rule issued by the Commission on or after the date of enactment
of section 201 of the Gramm-Leach-Bliley Act with regard to the
exceptions to the definition of a broker under section
3(a)(4)(B) of the Securities Exchange Act of 1934. No such other
rule, whether or not issued in final form, shall have any force
or effect on or after that date of enactment.
(b) Consultation.--Prior to jointly adopting the single set of final
rules or regulations required by this section, the Commission and the
Board shall consult with and seek the concurrence of the Federal banking
agencies concerning the content of such rulemaking in implementing
section 3(a)(4)(B) of the Securities Exchange Act of 1934, as amended by
this section and section 201 of the Gramm-Leach-Bliley Act.
(c) Definition.--For purposes of this section, the term ``Federal
banking agencies'' means the Office of the Comptroller of the Currency,
the Office of Thrift Supervision, and the Federal Deposit Insurance
Corporation.
TITLE II--MONETARY POLICY PROVISIONS
SEC. 201. AUTHORIZATION FOR THE FEDERAL RESERVE TO PAY INTEREST ON
RESERVES.
(a) In General.--Section 19(b) of the Federal Reserve Act (12 U.S.C.
461(b)) is amended by adding at the end the following:
``(12) Earnings on balances.--
``(A) In general.--Balances maintained at a Federal
Reserve bank by or on behalf of a depository institution
may receive earnings to be paid by the Federal Reserve
bank at least once each calendar quarter, at a rate or
rates not to exceed the general level of short-term
interest rates.
[[Page 120 STAT. 1969]]
``(B) Regulations relating to payments and
distributions.--The Board may prescribe regulations
concerning--
``(i) the payment of earnings in accordance
with this paragraph;
``(ii) the distribution of such earnings to
the depository institutions which maintain
balances at such banks, or on whose behalf such
balances are maintained; and
``(iii) the responsibilities of depository
institutions, Federal Home Loan Banks, and the
National Credit Union Administration Central
Liquidity Facility with respect to the crediting
and distribution of earnings attributable to
balances maintained, in accordance with subsection
(c)(1)(A), in a Federal Reserve bank by any such
entity on behalf of depository institutions.
``(C) Depository institutions defined.--For purposes
of this paragraph, the term `depository institution', in
addition to the institutions described in paragraph
(1)(A), includes any trust company, corporation
organized under section 25A or having an agreement with
the Board under section 25, or any branch or agency of a
foreign bank (as defined in section 1(b) of the
International Banking Act of 1978).''.
(b) Conforming Amendment.--Section 19 of the Federal Reserve Act (12
U.S.C. 461) is amended--
(1) in subsection (b)(4)--
(A) by striking subparagraph (C); and
(B) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(2) in subsection (c)(1)(A), by striking ``subsection
(b)(4)(C)'' and inserting ``subsection (b)''.
SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RESERVE BOARD TO
ESTABLISH RESERVE REQUIREMENTS.
Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C.
461(b)(2)(A)) is amended--
(1) in clause (i), by striking ``the ratio of 3 per centum''
and inserting ``a ratio of not greater than 3 percent (and which
may be zero)''; and
(2) in clause (ii), by striking ``and not less than 8 per
centum,'' and inserting ``(and which may be zero),''.
SEC. 203. <<NOTE: 12 USC 461 note.>> EFFECTIVE DATE.
The amendments made by this title shall take effect October 1, 2011.
TITLE III--NATIONAL BANK PROVISIONS
SEC. 301. VOTING IN SHAREHOLDER ELECTIONS.
Section 5144 of the Revised Statutes of the United States (12 U.S.C.
61) is amended--
(1) by striking ``or to cumulate'' and inserting ``or, if so
provided by the articles of association of the national bank, to
cumulate''; and
[[Page 120 STAT. 1970]]
(2) by striking the comma after ``his shares shall equal''.
SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL BANKS.
(a) In General.--Section 5199 of the Revised Statutes of the United
States (12 U.S.C. 60) is amended to read as follows:
``SEC. 5199. NATIONAL BANK DIVIDENDS.
``(a) In General.--Subject to subsection (b), the directors of any
national bank may declare a dividend of so much of the undivided profits
of the bank as the directors judge to be expedient.
``(b) Approval Required Under Certain Circumstances.--A national
bank may not declare and pay dividends in any year in excess of an
amount equal to the sum of the total of the net income of the bank for
that year and the retained net income of the bank for the preceding 2
years, minus the sum of any transfers required by the Comptroller of the
Currency and any transfers required to be made to a fund for the
retirement of any preferred stock, unless the Comptroller of the
Currency approves the declaration and payment of dividends in excess of
such amount.''.
(b) Clerical Amendment.--The table of sections for chapter three of
title LXII of the Revised Statutes of the United States is amended by
striking the item relating to section 5199 and inserting the following:
``5199. National bank dividends.''.
SEC. 303. REPEAL OF OBSOLETE LIMITATION ON REMOVAL AUTHORITY OF THE
COMPTROLLER OF THE CURRENCY.
Section 8(e)(4) of the Federal Deposit Insurance Act (12 U.S.C.
1818(e)(4)) is amended by striking the 5th sentence.
SEC. 304. REPEAL OF OBSOLETE PROVISION IN THE REVISED STATUTES.
Section 5143 of the Revised Statutes of the United States (12 U.S.C.
59) is amended to read as follows:
``SEC. 5143. REDUCTION OF CAPITAL.
``(a) In General.--Subject to the approval of the Comptroller of the
Currency, a national banking association may, by a vote of shareholders
owning, in the aggregate, two-thirds of its capital stock, reduce its
capital.
``(b) Shareholder Distributions Authorized.--As part of its capital
reduction plan approved in accordance with subsection (a), and with the
affirmative vote of shareholders owning at least two thirds of the
shares of each class of its stock outstanding (each voting as a class),
a national banking association may distribute cash or other assets to
its shareholders.''.
SEC. 305. ENHANCING THE AUTHORITY FOR BANKS TO MAKE COMMUNITY
DEVELOPMENT INVESTMENTS.
(a) National Banks.--The paragraph designated as the ``Eleventh.''
of section 5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended to read as follows:
``Eleventh. To make investments directly or indirectly, each of
which promotes the public welfare by benefiting primarily low- and
moderate-income communities or families (such as by providing
[[Page 120 STAT. 1971]]
housing, services, or jobs). An association shall not make any such
investment if the investment would expose the association to unlimited
liability. The Comptroller of the Currency shall limit an association's
investments in any 1 project and an association's aggregate investments
under this paragraph. An association's aggregate investments under this
paragraph shall not exceed an amount equal to the sum of 5 percent of
the association's capital stock actually paid in and unimpaired and 5
percent of the association's unimpaired surplus fund, unless the
Comptroller determines by order that the higher amount will pose no
significant risk to the affected deposit insurance fund, and the
association is adequately capitalized. In no case shall an association's
aggregate investments under this paragraph exceed an amount equal to the
sum of 15 percent of the association's capital stock actually paid in
and unimpaired and 15 percent of the association's unimpaired surplus
fund. The foregoing standards and limitations apply to investments under
this paragraph made by a national bank directly and by its
subsidiaries.''.
(b) Conforming Amendments for State Member Banks.--The 23rd
undesignated paragraph of section 9 of the Federal Reserve Act (12
U.S.C. 338a) is amended to read as follows:
``(23) A State member bank may make investments directly or
indirectly, each of which promotes the public welfare by
benefiting primarily low- and moderate-income communities or
families (such as by providing housing, services, or jobs), to
the extent permissible under State law. A State member bank
shall not make any such investment if the investment would
expose the State member bank to unlimited liability. The Board
shall limit a State member bank's investment in any 1 project
and a State member bank's aggregate investments under this
paragraph. The aggregate amount of investments of any State
member bank under this paragraph may not exceed an amount equal
to the sum of 5 percent of the State member bank's capital stock
actually paid in and unimpaired and 5 percent of the State
member bank's unimpaired surplus, unless the Board determines,
by order, that a higher amount will pose no significant risk to
the affected deposit insurance fund; and the State member bank
is adequately capitalized. In no case shall the aggregate amount
of investments of any State member bank under this paragraph
exceed an amount equal to the sum of 15 percent of the State
member bank's capital stock actually paid in and unimpaired and
15 percent of the State member bank's unimpaired surplus. The
foregoing standards and limitations apply to investments under
this paragraph made by a State member bank directly and by its
subsidiaries.''.
TITLE IV--SAVINGS ASSOCIATION PROVISIONS
SEC. 401. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE SECURITIES EXCHANGE
ACT OF 1934 AND THE INVESTMENT ADVISERS ACT OF 1940.
(a) Securities Exchange Act of 1934.--
(1) Definition of bank.--Section 3(a)(6) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended--
[[Page 120 STAT. 1972]]
(A) in subparagraph (A), by inserting ``or a Federal
savings association, as defined in section 2(5) of the
Home Owners' Loan Act'' after ``a banking institution
organized under the laws of the United States''; and
(B) in subparagraph (C)--
(i) by inserting ``or savings association, as
defined in section 2(4) of the Home Owners' Loan
Act'' after ``banking institution''; and
(ii) by inserting ``or savings associations''
after ``having supervision over banks''.
(2) Inclusion of ots under the definition of appropriate
regulatory agency for certain purposes.--Section 3(a)(34) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)) is
amended--
(A) in subparagraph (A)--
(i) in clause (ii), by striking ``(i) or
(iii)'' and inserting ``(i), (iii), or (iv)'';
(ii) in clause (iii), by striking ``and'' at
the end;
(iii) by redesignating clause (iv) as clause
(v); and
(iv) by inserting after clause (iii) the
following:
``(iv) the Director of the Office of Thrift
Supervision, in the case of a savings association
(as defined in section 3(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(b))), the deposits
of which are insured by the Federal Deposit
Insurance Corporation, a subsidiary or a
department or division of any such savings
association, or a savings and loan holding
company; and'';
(B) in subparagraph (B)--
(i) in clause (ii), by striking ``(i) or
(iii)'' and inserting ``(i), (iii), or (iv)'';
(ii) in clause (iii), by striking ``and'' at
the end;
(iii) by redesignating clause (iv) as clause
(v); and
(iv) by inserting after clause (iii) the
following:
``(iv) the Director of the Office of Thrift
Supervision, in the case of a savings association
(as defined in section 3(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(b))), the deposits
of which are insured by the Federal Deposit
Insurance Corporation, or a subsidiary of any such
savings association, or a savings and loan holding
company; and'';
(C) in subparagraph (C)--
(i) in clause (ii), by striking ``(i) or
(iii)'' and inserting ``(i), (iii), or (iv)'';
(ii) in clause (iii), by striking ``and'' at
the end;
(iii) by redesignating clause (iv) as clause
(v); and
(iv) by inserting after clause (iii) the
following:
``(iv) the Director of the Office of Thrift
Supervision, in the case of a savings association
(as defined in section 3(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(b))), the deposits
of which are insured by the Federal Deposit
Insurance Corporation, a savings and loan holding
company, or a subsidiary of a savings and loan
holding company when the appropriate regulatory
agency for such clearing agency is not the
Commission; and'';
(D) in subparagraph (D)--
[[Page 120 STAT. 1973]]
(i) in clause (ii), by striking ``and'' at the
end;
(ii) by redesignating clause (iii) as clause
(iv); and
(iii) by inserting after clause (ii) the
following:
``(iii) the Director of the Office of Thrift
Supervision, in the case of a savings association
(as defined in section 3(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(b))) the deposits of
which are insured by the Federal Deposit Insurance
Corporation; and'';
(E) in subparagraph (F)--
(i) by redesignating clauses (ii), (iii), and
(iv) as clauses (iii), (iv), and (v),
respectively; and
(ii) by inserting after clause (i) the
following:
``(ii) the Director of the Office of Thrift
Supervision, in the case of a savings association
(as defined in section 3(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(b))), the deposits
of which are insured by the Federal Deposit
Insurance Corporation; and'';
(F) by moving subparagraph (H) and inserting such
subparagraph immediately after subparagraph (G); and
(G) by adding at the end of the undesignated matter
at the end the following: ``As used in this paragraph,
the term `savings and loan holding company' has the same
meaning as in section 10(a) of the Home Owners' Loan Act
(12 U.S.C. 1467a(a)).''.
(3) Conforming exemption to reporting requirement.--Section
23(b)(1) of the Securities Exchange Act of 1934 (15 U.S.C.
78w(b)(1)) is amended by inserting ``other than the Office of
Thrift Supervision,'' before ``shall each''.
(b) Investment Advisers Act of 1940.--
(1) Definition of bank.--Section 202(a)(2) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-2(a)(2)) is amended--
(A) in subparagraph (A), by inserting ``or a Federal
savings association, as defined in section 2(5) of the
Home Owners' Loan Act'' after ``a banking institution
organized under the laws of the United States''; and
(B) in subparagraph (C)--
(i) by inserting ``, savings association, as
defined in section 2(4) of the Home Owners' Loan
Act,'' after ``banking institution''; and
(ii) by inserting ``or savings associations''
after ``having supervision over banks''.
(2) Conforming amendments.--Section 210A of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-10a) is amended in each of
subsections (a)(1)(A)(i), (a)(1)(B), (a)(2), and (b), by
striking ``bank holding company'' each place that term appears
and inserting ``bank holding company or savings and loan holding
company''.
(c) Conforming Amendment to the Investment Company Act of 1940.--
Section 10(c) of the Investment Company Act of 1940 (15 U.S.C. 80a-
10(c)) is amended by inserting after ``1956)'' the following: ``or any
one savings and loan holding company, together with its affiliates and
subsidiaries (as such terms are defined in section 10 of the Home
Owners' Loan Act),''.
[[Page 120 STAT. 1974]]
SEC. 402. REPEAL OF OVERLAPPING RULES GOVERNING PURCHASED MORTGAGE
SERVICING RIGHTS.
Section 5(t) of the Home Owners' Loan Act (12 U.S.C. 1464(t)) is
amended--
(1) by striking paragraph (4) and inserting the following:
``(4) [Repealed].''; and
(2) in paragraph (9)(A), by striking ``intangible assets,
plus'' and all that follows through the period at the end and
inserting ``intangible assets.''.
SEC. 403. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS ASSOCIATIONS FOR
FEDERAL COURT JURISDICTION.
Section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) is amended
by adding at the end the following:
``(x) Home State Citizenship.--In determining whether a Federal
court has diversity jurisdiction over a case in which a Federal savings
association is a party, the Federal savings association shall be
considered to be a citizen only of the State in which such savings
association has its home office.''.
SEC. 404. REPEAL OF LIMITATION ON LOANS TO ONE BORROWER.
Section 5(u)(2)(A) of the Home Owners' Loan Act (12 U.S.C.
1464(u)(2)(A)) is amended--
(1) in clause (i)--
(A) by striking ``for any'' and inserting ``For
any''; and
(B) by striking ``; or'' and inserting a period; and
(2) in clause (ii)--
(A) by striking ``to develop domestic'' and
inserting ``To develop domestic'';
(B) by striking subclause (I); and
(C) by redesignating subclauses (II) through (V) as
subclauses (I) through (IV), respectively.
TITLE V--CREDIT UNION PROVISIONS
SEC. 501. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT UNIONS.
(a) In General.--Section 124 of the Federal Credit Union Act (12
U.S.C. 1770) is amended--
(1) by striking ``Upon application by any credit union'' and
inserting ``Notwithstanding any other provision of law, upon
application by any credit union'';
(2) by inserting ``on lands reserved for the use of, and
under the exclusive or concurrent jurisdiction of, the United
States or'' after ``officer or agency of the United States
charged with the allotment of space'';
(3) by inserting ``lease land or'' after ``such officer or
agency may in his or its discretion''; and
(4) by inserting ``or the facility built on the lease land''
after ``credit union to be served by the allotment of space''.
(b) Clerical Amendment.--The section heading for section 124 of the
Federal Credit Union Act (12 U.S.C. 1770) is amended by inserting ``or
federal land'' after ``buildings''.
[[Page 120 STAT. 1975]]
SEC. 502. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF FEDERAL
CREDIT UNION LOANS TO 15 YEARS.
Section 107(5) of the Federal Credit Union Act (12 U.S.C. 1757(5))
is amended in the matter preceding subparagraph (A), by striking ``to
make loans, the maturities of which shall not exceed twelve years'' and
inserting ``to make loans, the maturities of which shall not exceed 15
years,''.
SEC. 503. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED WITHIN THE
FIELD OF MEMBERSHIP.
Section 107(12) of the Federal Credit Union Act (12 U.S.C. 1757(12))
is amended to read as follows:
``(12) <<NOTE: Regulations.>> in accordance with regulations
prescribed by the Board--
``(A) to sell, to persons in the field of
membership, negotiable checks (including travelers
checks), money orders, and other similar money transfer
instruments (including international and domestic
electronic fund transfers); and
``(B) to cash checks and money orders and receive
international and domestic electronic fund transfers for
persons in the field of membership for a fee;''.
SEC. 504. CLARIFICATION OF DEFINITION OF NET WORTH UNDER CERTAIN
CIRCUMSTANCES FOR PURPOSES OF PROMPT CORRECTIVE ACTION.
Section 216(o)(2)(A) of the Federal Credit Union Act (12 U.S.C.
1790d(o)(2)(A)) is amended--
(1) by inserting ``the'' before ``retained earnings
balance''; and
(2) by inserting ``, together with any amounts that were
previously retained earnings of any other credit union with
which the credit union has combined'' before the semicolon at
the end.
SEC. 505. AMENDMENTS RELATING TO NONFEDERALLY INSURED CREDIT UNIONS.
(a) In General.--Subsection (a) of section 43 of the Federal Deposit
Insurance Act (12 U.S.C. 1831t(a)) is amended by adding at the end the
following new paragraph:
``(3) Enforcement by appropriate state supervisor.--Any
appropriate State supervisor of a private deposit insurer, and
any appropriate State supervisor of a depository institution
which receives deposits that are insured by a private deposit
insurer, may examine and enforce compliance with this subsection
under the applicable regulatory authority of such supervisor.''.
(b) Amendment Relating to Disclosures Required, Periodic
Statements, and Account Records.--Section 43(b)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1831t(b)(1)) is amended
by striking ``or similar instrument evidencing a deposit'' and
inserting ``or share certificate.''.
(c) Amendments Relating to Disclosures Required, Advertising,
Premises.--Section 43(b)(2) of the Federal Deposit Insurance Act (12
U.S.C. 1831t(b)(2)) is amended to read as follows:
``(2) Advertising; premises.--
``(A) In general.--Include clearly and conspicuously
in all advertising, except as provided in subparagraph
(B);
[[Page 120 STAT. 1976]]
and at each station or window where deposits are
normally received, its principal place of business and
all its branches where it accepts deposits or opens
accounts (excluding automated teller machines or point
of sale terminals), and on its main Internet page, a
notice that the institution is not federally insured.
``(B) Exceptions.--The following need not include a
notice that the institution is not federally insured:
``(i) Any sign, document, or other item that
contains the name of the depository institution,
its logo, or its contact information, but only if
the sign, document, or item does not include any
information about the institution's products or
services or information otherwise promoting the
institution.
``(ii) Small utilitarian items that do not
mention deposit products or insurance if inclusion
of the notice would be impractical.''.
(d) Amendments Relating to Acknowledgment of Disclosure.--
Section 43(b)(3) of the Federal Deposit Insurance Act (12 U.S.C.
1831t(b)(3)) is amended to read as follows:
``(3) Acknowledgment of disclosure.--
``(A) New depositors obtained other than through a
conversion or merger.--With respect to any depositor who
was not a depositor at the depository institution before
the effective date of the Financial Services Regulatory
Relief Act of 2006, and who is not a depositor as
described in subparagraph (B), receive any deposit for
the account of such depositor only if the depositor has
signed a written acknowledgement that--
``(i) the institution is not federally
insured; and
``(ii) if the institution fails, the Federal
Government does not guarantee that the depositor
will get back the depositor's money.
``(B) New depositors obtained through a conversion
or merger.--With respect to a depositor at a federally
insured depository institution that converts to, or
merges into, a depository institution lacking federal
insurance after the effective date of the Financial
Services Regulatory Relief Act of 2006, receive any
deposit for the account of such depositor only if--
``(i) the depositor has signed a written
acknowledgement described in subparagraph (A); or
``(ii) <<NOTE: Deadline.>> the institution
makes an attempt, as described in subparagraph (D)
and sent by mail no later than 45 days after the
effective date of the conversion or merger, to
obtain the acknowledgment.
``(C) Current depositors.--Receive any deposit after
the effective date of the Financial Services Regulatory
Relief Act of 2006 for the account of any depositor who
was a depositor on that date only if--
``(i) the depositor has signed a written
acknowledgement described in subparagraph (A); or
``(ii) the institution has complied with the
provisions of subparagraph (E) which are
applicable as of the date of the deposit.
[[Page 120 STAT. 1977]]
``(D) Alternative provision of notice to new
depositors obtained through a conversion or merger.--
``(i) In general.--Transmit to each depositor
who has not signed a written acknowledgement
described in subparagraph (A)--
``(I) a conspicuous card containing
the information described in clauses (i)
and (ii) of subparagraph (A), and a line
for the signature of the depositor; and
``(II) accompanying materials
requesting the depositor to sign the
card, and return the signed card to the
institution.
``(E) Alternative provision of notice to current
depositors.--
``(i) In general.--Transmit to each depositor
who was a depositor before the effective date of
the Financial Services Regulatory Relief Act of
2006, and has not signed a written acknowledgement
described in subparagraph (A)--
``(I) a conspicuous card containing
the information described in clauses (i)
and (ii) of subparagraph (A), and a line
for the signature of the depositor; and
``(II) accompanying materials
requesting the depositor to sign the
card, and return the signed card to the
institution.
``(ii) Manner <<NOTE: Deadlines.>> and timing
of notice.--
``(I) First notice.--Make the
transmission described in clause (i) via
mail not later than three months after
the effective date of the Financial
Services Regulatory Relief Act of 2006.
``(II) Second notice.--Make a second
transmission described in clause (i) via
mail not less than 30 days and not more
than three months after a transmission
to the depositor in accordance with
subclause (I), if the institution has
not, by the date of such mailing,
received from the depositor a card
referred to in clause (i) which has been
signed by the depositor.''.
(e) Amendments Relating to Manner and Content of Disclosure.--
Section 43(c) of the Federal Deposit Insurance Act (12 U.S.C. 1831t(c))
is amended to read as follows:
``(c) Manner <<NOTE: Regulations.>> and Content of Disclosure.--To
ensure that current and prospective customers understand the risks
involved in foregoing Federal deposit insurance, the Federal Trade
Commission, by regulation or order, shall prescribe the manner and
content of disclosure required under this section, which shall be
presented in such format and in such type size and manner as to be
simple and easy to understand.''.
(f) Repeal of Provision Prohibiting Nondepository Institutions From
Accepting Deposits.--Section 43 of the Federal Deposit Insurance Act (12
U.S.C. 1831t) is amended--
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
[[Page 120 STAT. 1978]]
(g) Repeal of FTC Authority To Enforce Independent Audit
Requirement; Concurrent State Enforcement.--Subsection (f) (as so
redesignated by subsection (e) of this section) of section 43 of the
Federal Deposit Insurance Act (12 U.S.C. 1831t) is amended to read as
follows:
``(f) Enforcement.--
``(1) Limited ftc enforcement authority.--Compliance with
the requirements of subsections (b), (c) and (e), and any
regulation prescribed or order issued under any such subsection,
shall be enforced under the Federal Trade Commission Act by the
Federal Trade Commission.
``(2) Broad state enforcement authority.--
``(A) In general.--Subject to subparagraph (C), an
appropriate State supervisor of a depository institution
lacking Federal deposit insurance may examine and
enforce compliance with the requirements of this
section, and any regulation prescribed under this
section.
``(B) State powers.--For purposes of bringing any
action to enforce compliance with this section, no
provision of this section shall be construed as
preventing an appropriate State supervisor of a
depository institution lacking Federal deposit insurance
from exercising any powers conferred on such official by
the laws of such State.
``(C) Limitation on state action while federal
action pending.--If the Federal Trade Commission has
instituted an enforcement action for a violation of this
section, no appropriate State supervisor may, during the
pendency of such action, bring an action under this
section against any defendant named in the complaint of
the Commission for any violation of this section that is
alleged in that complaint.''.
TITLE VI--DEPOSITORY INSTITUTION PROVISIONS
SEC. 601. REPORTING REQUIREMENTS RELATING TO INSIDER LENDING.
(a) Reporting Requirements Regarding Loans to Executive Officers of
Member Banks.--Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a)
is amended--
(1) by striking paragraphs (6) and (9); and
(2) by redesignating paragraphs (7), (8), and (10) as
paragraphs (6), (7), and (8), respectively.
(b) Reporting Requirements Regarding Loans From Correspondent Banks
to Executive Officers and Shareholders of Insured Banks.--Section
106(b)(2) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C.
1972(2)) is amended--
(1) by striking subparagraph (G); and
(2) by redesignating subparagraphs (H) and (I) as
subparagraphs (G) and (H), respectively.
SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK SERVICE
COMPANIES AUTHORIZED.
(a) In General.--Sections 2 and 3 of the Bank Service Company Act
(12 U.S.C. 1862, 1863) are each amended by striking
[[Page 120 STAT. 1979]]
``insured bank'' each place that term appears and inserting ``insured
depository institution''.
(b) Technical and Conforming Amendments.--
(1) Bank service company act definitions.--Section 1(b) of
the Bank Service Company Act (12 U.S.C. 1861(b)) is amended--
(A) in paragraph (4)--
(i) by inserting ``, except when such term
appears in connection with the term `insured
depository institution','' after ``means''; and
(ii) by striking ``Federal Home Loan Bank
Board'' and inserting ``Director of the Office of
Thrift Supervision'';
(B) by striking paragraph (5) and inserting the
following:
``(5) Insured depository institution.--The term `insured
depository institution' has the same meaning as in section 3(c)
of the Federal Deposit Insurance Act;'';
(C) by striking ``and'' at the end of paragraph (7);
(D) by striking the period at the end of paragraph
(8) and inserting ``; and'';
(E) by adding at the end the following:
``(9) the terms `State depository institution', `Federal
depository institution', `State savings association' and
`Federal savings association' have the same meanings as in
section 3 of the Federal Deposit Insurance Act.'';
(F) in paragraph (2), in subparagraphs (A)(ii) and
(B)(ii), by striking ``insured banks'' each place that
term appears and inserting ``insured depository
institutions''; and
(G) in paragraph (8)--
(i) by striking ``insured bank'' and inserting
``insured depository institution'';
(ii) by striking ``insured banks'' each place
that term appears and inserting ``insured
depository institutions''; and
(iii) by striking ``the bank's'' and inserting
``the depository institution's''.
(2) Amount of investment.--Section 2 of the Bank Service
Company Act (12 U.S.C. 1862) is amended by inserting ``or
savings associations, other than the limitation on the amount of
investment by a Federal savings association contained in section
5(c)(4)(B) of the Home Owners' Loan Act'' after ``relating to
banks''.
(3) Location of services.--Section 4 of the Bank Service
Company Act (12 U.S.C. 1864) is amended--
(A) in subsection (b), by inserting ``as permissible
under subsection (c), (d), or (e) or'' after ``Except'';
(B) in subsection (c), by inserting ``or State
savings association'' after ``State bank'' each place
that term appears;
(C) in subsection (d), by inserting ``or Federal
savings association'' after ``national bank'' each place
that term appears;
(D) by striking subsection (e) and inserting the
following:
[[Page 120 STAT. 1980]]
``(e) Performance Where State Bank and National Bank Are
Shareholders or Members.--A bank service company may perform--
``(1) only those services that each depository institution
shareholder or member is otherwise authorized to perform under
any applicable Federal or State law; and
``(2) such services only at locations in a State in which
each such shareholder or member is authorized to perform such
services.''; and
(E) in subsection (f), by inserting ``or savings
associations'' after ``location of banks''.
(4) Prior approval of investments.--Section 5 of the Bank
Service Company Act (12 U.S.C. 1865) is amended--
(A) in subsection (a)--
(i) by striking ``insured bank'' and inserting
``insured depository institution''; and
(ii) by striking ``bank's''; and
(iii) by inserting before the period ``for the
insured depository institution'';
(B) in subsection (b)--
(i) by striking ``insured bank'' and inserting
``insured depository institution'';
(ii) by inserting ``authorized only'' after
``performs any service''; and
(iii) by inserting ``authorized only'' after
``perform any activity''; and
(C) in subsection (c)--
(i) by striking ``the bank or banks'' and
inserting ``any insured depository institution'';
and
(ii) by striking ``capability of the bank''
and inserting ``capability of the insured
depository institution''.
(5) Regulation and examination.--Section 7 of the Bank
Service Company Act (12 U.S.C. 1867) is amended--
(A) in subsection (b), by striking ``insured bank''
and inserting ``insured depository institution''; and
(B) in subsection (c)--
(i) by striking ``a bank'' each place that
term appears and inserting ``a depository
institution''; and
(ii) by striking ``the bank'' each place that
term appears and inserting ``the depository
institution''.
SEC. 603. AUTHORIZATION FOR MEMBER BANK TO USE PASS-THROUGH RESERVE
ACCOUNTS.
Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C.
461(c)(1)(B)) is amended by striking ``which is not a member bank''.
SEC. 604. STREAMLINING REPORTS OF CONDITION.
Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C.
1817(a)) is amended by adding at the end the following:
``(11) Streamlining reports of condition.--
``(A) Review of <<NOTE: Deadlines.>> information and
schedules.--Before the end of the 1-year period
beginning on the date of enactment of the Financial
Services Regulatory Relief Act of 2006 and before the
end of each 5-year period thereafter, each Federal
banking agency shall, in conjunction with the other
relevant Federal banking agencies, review the
information and schedules that are required to be filed
[[Page 120 STAT. 1981]]
by an insured depository institution in a report of
condition required under paragraph (3).
``(B) Reduction or elimination of information found
to be unnecessary.--After completing the review required
by subparagraph (A), a Federal banking agency, in
conjunction with the other relevant Federal banking
agencies, shall reduce or eliminate any requirement to
file information or schedules under paragraph (3) (other
than information or schedules that are otherwise
required by law) if the agency determines that the
continued collection of such information or schedules is
no longer necessary or appropriate.''.
SEC. 605. EXPANSION OF ELIGIBILITY FOR 18-MONTH EXAMINATION SCHEDULE FOR
COMMUNITY BANKS.
Section 10(d)(4)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)(4)(A)) is amended by striking ``$250,000,000'' and inserting
``$500,000,000''.
SEC. 606. STREAMLINING DEPOSITORY INSTITUTION MERGER APPLICATION
REQUIREMENTS.
(a) In General.--Section 18(c)(4) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(c)(4)) is amended to read as follows:
``(4) Reports on competitive factors.--
``(A) Request for report.--In the interests of
uniform standards and subject to subparagraph (B),
before acting on any application for approval of a
merger transaction, the responsible agency shall--
``(i) request a report on the competitive
factors involved from the Attorney General of the
United States; and
``(ii) <<NOTE: Records.>> provide a copy of
the request to the Corporation (when the
Corporation is not the responsible agency).
``(B) Furnishing of report.--
The <<NOTE: Deadlines.>> report requested under
subparagraph (A) shall be furnished by the Attorney
General to the responsible agency--
``(i) not later than 30 calendar days after
the date on which the Attorney General received
the request; or
``(ii) not later than 10 calendar days after
such date, if the requesting agency advises the
Attorney General that an emergency exists
requiring expeditious action.
``(C) Exceptions.--A responsible agency may not be
required to request a report under subparagraph (A) if--
``(i) the responsible agency finds that it
must act immediately in order to prevent the
probable failure of 1 of the insured depository
institutions involved in the merger transaction;
or
``(ii) the merger transaction involves solely
an insured depository institution and 1 or more of
the affiliates of such depository institution.''.
(b) Technical and Conforming Amendments.--Section 18(c)(6) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended--
(1) in the second sentence, by striking ``banks or savings
associations involved and reports on the competitive factors
[[Page 120 STAT. 1982]]
have'' and inserting ``insured depository institutions involved,
or if the proposed merger transaction is solely between an
insured depository institution and 1 or more of its affiliates,
and the report on the competitive factors has''; and
(2) by striking the penultimate sentence and inserting the
following: ``If <<NOTE: Deadline.>> the agency has advised the
Attorney General under paragraph (4)(B)(ii) of the existence of
an emergency requiring expeditious action and has requested a
report on the competitive factors within 10 days, the
transaction may not be consummated before the fifth calendar day
after the date of approval by the agency.''.
SEC. 607. NONWAIVER OF PRIVILEGES.
(a) Insured Depository Institutions.--Section 18 of the Federal
Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end
the following:
``(x) Privileges Not Affected by Disclosure to Banking Agency or
Supervisor.--
``(1) In general.--The submission by any person of any
information to any Federal banking agency, State bank
supervisor, or foreign banking authority for any purpose in the
course of any supervisory or regulatory process of such agency,
supervisor, or authority shall not be construed as waiving,
destroying, or otherwise affecting any privilege such person may
claim with respect to such information under Federal or State
law as to any person or entity other than such agency,
supervisor, or authority.
``(2) Rule of construction.--No provision of paragraph (1)
may be construed as implying or establishing that--
``(A) any person waives any privilege applicable to
information that is submitted or transferred under any
circumstance to which paragraph (1) does not apply; or
``(B) any person would waive any privilege
applicable to any information by submitting the
information to any Federal banking agency, State bank
supervisor, or foreign banking authority, but for this
subsection.''
(b) Insured Credit Unions.--Section 205 of the Federal Credit Union
Act (12 U.S.C. 1785) is amended by adding at the end the following:
``(j) Privileges Not Affected by Disclosure to Banking Agency or
Supervisor.--
``(1) In general.--The submission by any person of any
information to the Administration, any State credit union
supervisor, or foreign banking authority for any purpose in the
course of any supervisory or regulatory process of such Board,
supervisor, or authority shall not be construed as waiving,
destroying, or otherwise affecting any privilege such person may
claim with respect to such information under Federal or State
law as to any person or entity other than such Board,
supervisor, or authority.
``(2) Rule of construction.--No provision of paragraph (1)
may be construed as implying or establishing that--
``(A) any person waives any privilege applicable to
information that is submitted or transferred under any
circumstance to which paragraph (1) does not apply; or
``(B) any person would waive any privilege
applicable to any information by submitting the
information to the
[[Page 120 STAT. 1983]]
Administration, any State credit union supervisor, or
foreign banking authority, but for this subsection.''.
SEC. 608. CLARIFICATION OF APPLICATION REQUIREMENTS FOR OPTIONAL
CONVERSION FOR FEDERAL SAVINGS ASSOCIATIONS.
(a) Home Owners' Loan Act.--Section 5(i)(5) of the Home Owners' Loan
Act (12 U.S.C. 1464(i)(5)) is amended to read as follows:
``(5) Conversion to national or state bank.--
``(A) In general.--Any Federal savings association
chartered and in operation before the date of enactment
of the Gramm-Leach-Bliley Act, with branches in
operation before such date of enactment in 1 or more
States, may convert, at its option, with the approval of
the Comptroller of the Currency for each national bank,
and with the approval of the appropriate State bank
supervisor and the appropriate Federal banking agency
for each State bank, into 1 or more national or State
banks, each of which may encompass 1 or more of the
branches of the Federal savings association in operation
before such date of enactment in 1 or more States
subject to subparagraph (B).
``(B) Conditions of conversion.--The authority in
subparagraph (A) shall apply only if each resulting
national or State bank--
``(i) will meet all financial, management, and
capital requirements applicable to the resulting
national or State bank; and
``(ii) if more than 1 national or State bank
results from a conversion under this subparagraph,
has received approval from the Federal Deposit
Insurance Corporation under section 5(a) of the
Federal Deposit Insurance Act.
``(C) No merger application under fdia required.--No
application under section 18(c) of the Federal Deposit
Insurance Act shall be required for a conversion under
this paragraph.
``(D) Definitions.--For purposes of this paragraph,
the terms `State bank' and `State bank supervisor' have
the same meanings as in section 3 of the Federal Deposit
Insurance Act.''.
(b) Federal Deposit Insurance Act.--Section 4(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1814(c)) is amended--
(1) by inserting ``of this Act and section 5(i)(5) of the
Home Owners' Loan Act'' after ``Subject to section 5(d)''; and
(2) in paragraph (2), after ``insured State,'' by inserting
``or Federal''.
SEC. 609. EXEMPTION FROM DISCLOSURE OF PRIVACY POLICY FOR ACCOUNTANTS.
(a) In General.--Section 503 of the Gramm-Leach-Bliley Act (15
U.S.C. 6803) is amended by adding at the end the following:
``(d) Exemption for Certified Public Accountants.--
``(1) In general.--The disclosure requirements of subsection
(a) do not apply to any person, to the extent that the person
is--
``(A) a certified public accountant;
[[Page 120 STAT. 1984]]
``(B) certified or licensed for such purpose by a
State; and
``(C) subject to any provision of law, rule, or
regulation issued by a legislative or regulatory body of
the State, including rules of professional conduct or
ethics, that prohibits disclosure of nonpublic personal
information without the knowing and expressed consent of
the consumer.
``(2) Limitation.--Nothing in this subsection shall be
construed to exempt or otherwise exclude any financial
institution that is affiliated or becomes affiliated with a
certified public accountant described in paragraph (1) from any
provision of this section.
``(3) Definitions.--For purposes of this subsection, the
term `State' means any State or territory of the United States,
the District of Columbia, Puerto Rico, Guam, American Samoa, the
Trust Territory of the Pacific Islands, the Virgin Islands, or
the Northern Mariana Islands.''.
(b) Clerical Amendments.--Section 503 of the Gramm-Leach-Bliley Act
(15 U.S.C. 6803) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) in subsection (a), by striking ``Such disclosures'' and
inserting the following:
``(b) Regulations.--Disclosures required by subsection (a)''.
SEC. 610. INFLATION ADJUSTMENT FOR THE SMALL DEPOSITORY INSTITUTION
EXCEPTION UNDER THE DEPOSITORY INSTITUTION MANAGEMENT
INTERLOCKS ACT.
Section 203(1) of the Depository Institution Management Interlocks
Act (12 U.S.C. 3202(1)) is amended by striking ``$20,000,000'' and
inserting ``$50,000,000''.
SEC. 611. MODIFICATION TO CROSS MARKETING RESTRICTIONS.
Section 4(n)(5)(B) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(n)(5)(B)) is amended by striking ``subsection (k)(4)(I)''
and inserting ``subparagraph (H) or (I) of subsection (k)(4)''.
TITLE VII--BANKING AGENCY PROVISIONS
SEC. 701. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW OF APPOINTMENT OF A
RECEIVER FOR DEPOSITORY INSTITUTIONS.
(a) National Banks.--Section 2 of the National Bank Receivership Act
(12 U.S.C. 191) is amended--
(1) by amending the section heading to read as follows:
``SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL BANK.
``(a) In General.--The Comptroller of the Currency''; and
(2) by adding at the end the following:
``(b) Judicial Review.--If the Comptroller of the Currency appoints
a receiver under subsection (a), <<NOTE: Deadline.>> the national bank
may, within 30 days thereafter, bring an action in the United States
district court for the judicial district in which the home office of
such bank is located, or in the United States District Court for the
District of Columbia, for an order requiring the Comptroller of the
Currency to remove the receiver, and the court shall, upon
[[Page 120 STAT. 1985]]
the merits, dismiss such action or direct the Comptroller of the
Currency to remove the receiver.''.
(b) Insured Depository Institutions.--Section 11(c)(7) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(c)(7)) is amended to read
as follows:
``(7) Judicial review.--If <<NOTE: Deadline.>> the
Corporation is appointed (including the appointment of the
Corporation as receiver by the Board of Directors) as
conservator or receiver of a depository institution under
paragraph (4), (9), or (10), the depository institution may, not
later than 30 days thereafter, bring an action in the United
States district court for the judicial district in which the
home office of such depository institution is located, or in the
United States District Court for the District of Columbia, for
an order requiring the Corporation to be removed as the
conservator or receiver (regardless of how such appointment was
made), and the court shall, upon the merits, dismiss such action
or direct the Corporation to be removed as the conservator or
receiver.''.
(c) Effective <<NOTE: 12 USC 191 note.>> Date.--The amendments made
by subsections (a) and (b) shall apply with respect to conservators or
receivers appointed on or after the date of enactment of this Act.
SEC. 702. ENHANCING THE SAFETY AND SOUNDNESS OF INSURED DEPOSITORY
INSTITUTIONS.
(a) Clarification Relating to the Enforceability of Agreements and
Conditions.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.)
is amended by adding at the end the following:
``SEC. 50. <<NOTE: 12 USC 1831aa.>> ENFORCEMENT OF AGREEMENTS.
``(a) In General.--Notwithstanding clause (i) or (ii) of section
8(b)(6)(A) or section 38(e)(2)(E)(i), the appropriate Federal banking
agency for a depository institution may enforce, under section 8, the
terms of--
``(1) any condition imposed in writing by the agency on the
depository institution or an institution-affiliated party in
connection with any action on any application, notice, or other
request concerning the depository institution; or
``(2) any written agreement entered into between the agency
and the depository institution or an institution-affiliated
party.
``(b) Receiverships and Conservatorships.--After the appointment of
the Corporation as the receiver or conservator for a depository
institution, the Corporation may enforce any condition or agreement
described in paragraph (1) or (2) of subsection (a) imposed on or
entered into with such institution or institution-affiliated party
through an action brought in an appropriate United States district
court.''.
(b) Protection of Capital of Insured Depository Institutions.--
Section 18(u)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1828(u)(1)) is amended--
(1) by striking subparagraph (B);
(2) by redesignating subparagraph (C) as subparagraph (B);
and
(3) in subparagraph (A), by adding ``and'' at the end.
(c) Conforming Amendments.--Section 8(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1818(b)) is amended--
(1) in paragraph (3), by striking ``This subsection and
subsections (c) through (s) and subsection (u) of this section''
and
[[Page 120 STAT. 1986]]
inserting ``This subsection, subsections (c) through (s) and
subsection (u) of this section, and section 50 of this Act'';
and
(2) in paragraph (4), by striking ``This subsection and
subsections (c) through (s) and subsection (u) of this section''
and inserting ``This subsection, subsections (c) through (s) and
subsection (u) of this section, and section 50 of this Act''.
SEC. 703. CROSS GUARANTEE AUTHORITY.
Section 5(e)(9)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1815(e)(9)(A)) is amended to read as follows:
``(A) such institutions are controlled by the same
company; or''.
SEC. 704. GOLDEN PARACHUTE AUTHORITY AND NONBANK HOLDING COMPANIES.
Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C.
1828(k)) is amended--
(1) in paragraph (2)(A), by striking ``or depository
institution holding company'' and inserting ``or covered
company'';
(2) in paragraph (2), by striking subparagraph (B), and
inserting the following:
``(B) Whether there is a reasonable basis to believe
that the institution-affiliated party is substantially
responsible for--
``(i) the insolvency of the depository
institution or covered company;
``(ii) the appointment of a conservator or
receiver for the depository institution; or
``(iii) the troubled condition of the
depository institution (as defined in the
regulations prescribed pursuant to section
32(f)).'';
(3) in paragraph (2)(F), by striking ``depository
institution holding company'' and inserting ``covered
company,'';
(4) in paragraph (3) in the matter preceding subparagraph
(A), by striking ``depository institution holding company'' and
inserting ``covered company'';
(5) in paragraph (3)(A), by striking ``holding company'' and
inserting ``covered company'';
(6) in paragraph (4)(A)--
(A) by striking ``depository institution holding
company'' each place that term appears and inserting
``covered company''; and
(B) by striking ``holding company'' each place that
term appears (other than in connection with the term
referred to in subparagraph (A)) and inserting ``covered
company'';
(7) in paragraph (5)(A), by striking ``depository
institution holding company'' and inserting ``covered company'';
(8) in paragraph (5), by adding at the end the following:
``(D) Covered company.--The term `covered company'
means any depository institution holding company
(including any company required to file a report under
section 4(f)(6) of the Bank Holding Company Act of
1956), or any other company that controls an insured
depository institution.''; and
(9) in paragraph (6)--
(A) by striking ``depository institution holding
company'' and inserting ``covered company,''; and
[[Page 120 STAT. 1987]]
(B) by striking ``or holding company'' and inserting
``or covered company''.
SEC. 705. AMENDMENTS RELATING TO CHANGE IN BANK CONTROL.
Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C.
1817(j)) is amended--
(1) in paragraph (1)(D)--
(A) by striking ``is needed to investigate'' and
inserting ``is needed--
``(i) to investigate'';
(B) by striking ``United States Code.'' and
inserting ``United States Code; or''; and
(C) by adding at the end the following:
``(ii) to analyze the safety and soundness of
any plans or proposals described in paragraph
(6)(E) or the future prospects of the
institution.''; and
(2) in paragraph (7)(C), by striking ``the financial
condition of any acquiring person'' and inserting ``either the
financial condition of any acquiring person or the future
prospects of the institution''.
SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD WITH DISCRETION
CONCERNING THE IMPUTATION OF CONTROL OF SHARES OF A COMPANY
BY TRUSTEES.
Section 2(g)(2) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(g)(2)) is amended by inserting before the period at the end ``,
unless the Board determines that such treatment is not appropriate in
light of the facts and circumstances of the case and the purposes of
this Act''.
SEC. 707. INTERAGENCY DATA SHARING.
(a) Federal Banking Agencies.--Section 7(a)(2) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(a)(2)) is amended by adding at the
end the following:
``(C) Data sharing with other agencies and
persons.--In addition to reports of examination, reports
of condition, and other reports required to be regularly
provided to the Corporation (with respect to all insured
depository institutions, including a depository
institution for which the Corporation has been appointed
conservator or receiver) or an appropriate State bank
supervisor (with respect to a State depository
institution) under subparagraph (A) or (B), a Federal
banking agency may, in the discretion of the agency,
furnish any report of examination or other confidential
supervisory information concerning any depository
institution or other entity examined by such agency
under authority of any Federal law, to--
``(i) any other Federal or State agency or
authority with supervisory or regulatory authority
over the depository institution or other entity;
``(ii) any officer, director, or receiver of
such depository institution or entity; and
``(iii) any other person that the Federal
banking agency determines to be appropriate.''.
(b) National Credit Union Administration.--Section 202(a) of the
Federal Credit Union Act (12 U.S.C. 1782(a)) is amended by adding at the
end the following:
[[Page 120 STAT. 1988]]
``(8) Data sharing with other agencies and persons.--In
addition to reports of examination, reports of condition, and
other reports required to be regularly provided to the Board
(with respect to all insured credit unions, including a credit
union for which the Corporation has been appointed conservator
or liquidating agent) or an appropriate State commission, board,
or authority having supervision of a State-chartered credit
union, the Board may, in the discretion of the Board, furnish
any report of examination or other confidential supervisory
information concerning any credit union or other entity examined
by the Board under authority of any Federal law, to--
``(A) any other Federal or State agency or authority
with supervisory or regulatory authority over the credit
union or other entity;
``(B) any officer, director, or receiver of such
credit union or entity; and
``(C) any other person that the Board determines to
be appropriate.''.
SEC. 708. CLARIFICATION OF EXTENT OF SUSPENSION, REMOVAL, AND
PROHIBITION AUTHORITY OF FEDERAL BANKING AGENCIES IN CASES
OF CERTAIN CRIMES BY INSTITUTION-AFFILIATED PARTIES.
(a) Insured Depository Institutions.--
(1) In general.--Section 8(g)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1818(g)(1)) is amended--
(A) in subparagraph (A)--
(i) by striking ``is charged in any
information, indictment, or complaint, with the
commission of or participation in'' and inserting
``is the subject of any information, indictment,
or complaint, involving the commission of or
participation in'';
(ii) by striking ``may pose a threat to the
interests of the depository institution's
depositors or may threaten to impair public
confidence in the depository institution,'' and
insert ``posed, poses, or may pose a threat to the
interests of the depositors of, or threatened,
threatens, or may threaten to impair public
confidence in, any relevant depository institution
(as defined in subparagraph (E)),''; and
(iii) by striking ``affairs of the depository
institution'' and inserting ``affairs of any
depository institution'';
(B) in subparagraph (B)(i), by striking ``the
depository institution'' and inserting ``any depository
institution that the subject of the notice is affiliated
with at the time the notice is issued'';
(C) in subparagraph (C)(i)--
(i) by striking ``may pose a threat to the
interests of the depository institution's
depositors or may threaten to impair public
confidence in the depository institution,'' and
insert ``posed, poses, or may pose a threat to the
interests of the depositors of, or threatened,
threatens, or may threaten to impair public
confidence in, any relevant depository institution
(as defined in subparagraph (E)),''; and
[[Page 120 STAT. 1989]]
(ii) by striking ``affairs of the depository
institution'' and inserting ``affairs of any
depository institution'';
(D) in subparagraph (C)(ii), by striking ``affairs
of the depository institution'' and inserting ``affairs
of any depository institution'';
(E) in subparagraph (D)(i), by striking ``the
depository institution'' and inserting ``any depository
institution that the subject of the order is affiliated
with at the time the order is issued''; and
(F) by adding at the end the following:
``(E) Relevant depository institution.--For purposes
of this subsection, the term `relevant depository
institution' means any depository institution of which
the party is or was an institution-affiliated party at
the time at which--
``(i) the information, indictment, or
complaint described in subparagraph (A) was
issued; or
``(ii) the notice is issued under subparagraph
(A) or the order is issued under subparagraph
(C)(i).''.
(2) Clerical amendment.--The subsection heading for section
8(g) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g)) is
amended to read as follows:
``(g) Suspension, Removal, and Prohibition From Participation Orders
in the Case of Certain Criminal Offenses.--''.
(b) Insured Credit Unions.--
(1) In general.--Section 206(i)(1) of the Federal Credit
Union Act (12 U.S.C. 1786(i)(1)) is amended--
(A) in subparagraph (A), by striking ``the credit
union'' each place that term appears and inserting ``any
credit union'';
(B) in subparagraph (B)(i), by inserting ``of which
the subject of the order is, or most recently was, an
institution-affiliated party'' before the period at the
end;
(C) in subparagraph (C)--
(i) by striking ``the credit union'' each
place such term appears and inserting ``any credit
union''; and
(ii) by striking ``the credit union's'' and
inserting ``any credit union's'';
(D) in subparagraph (D)(i), by striking ``upon such
credit union'' and inserting ``upon the credit union of
which the subject of the order is, or most recently was,
an institution-affiliated party''; and
(E) by adding at the end the following:
``(E) Continuation of authority.--The Board may
issue an order under this paragraph with respect to an
individual who is an institution-affiliated party at a
credit union at the time of an offense described in
subparagraph (A) without regard to--
``(i) whether such individual is an
institution-affiliated party at any credit union
at the time the order is considered or issued by
the Board; or
``(ii) whether the credit union at which the
individual was an institution-affiliated party at
the time of the offense remains in existence at
the time the order is considered or issued by the
Board.''.
[[Page 120 STAT. 1990]]
(2) Clerical amendment.--Section 206(i) of the Federal
Credit Union Act (12 U.S.C. 1786(i)) is amended by striking
``(i)'' at the beginning and inserting the following:
``(i) Suspension, Removal, and Prohibition From Participation Orders
in the Case of Certain Criminal Offenses.--''.
SEC. 709. PROTECTION OF CONFIDENTIAL INFORMATION RECEIVED BY FEDERAL
BANKING REGULATORS FROM FOREIGN BANKING SUPERVISORS.
Section 15 of the International Banking Act of 1978 (12 U.S.C. 3109)
is amended by adding at the end the following:
``(c) Confidential Information Received From Foreign Supervisors.--
``(1) In general.--Except as provided in paragraph (3), a
Federal banking agency may not be compelled to disclose
information received from a foreign regulatory or supervisory
authority if--
``(A) the Federal banking agency determines that the
foreign regulatory or supervisory authority has, in good
faith, determined and represented in writing to such
Federal banking agency that public disclosure of the
information would violate the laws applicable to that
foreign regulatory or supervisory authority; and
``(B) the relevant Federal banking agency obtained
such information pursuant to--
``(i) such procedures as the Federal banking
agency may establish for use in connection with
the administration and enforcement of Federal
banking laws; or
``(ii) a memorandum of understanding or other
similar arrangement between the Federal banking
agency and the foreign regulatory or supervisory
authority.
``(2) Treatment under title 5, united states code.--For
purposes of section 552 of title 5, United States Code, this
subsection shall be treated as a statute described in subsection
(b)(3)(B) of such section.
``(3) Savings provision.--No provision of this section shall
be construed as--
``(A) authorizing any Federal banking agency to
withhold any information from any duly authorized
committee of the House of Representatives or the Senate;
or
``(B) preventing any Federal banking agency from
complying with an order of a court of the United States
in an action commenced by the United States or such
agency.
``(4) Federal banking agency defined.--For purposes of this
subsection, the term `Federal banking agency' means the Board,
the Comptroller of the Currency, the Federal Deposit Insurance
Corporation, and the Director of the Office of Thrift
Supervision.''.
SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED INDIVIDUALS.
(a) Extension of Automatic Prohibition.--Section 19 of the Federal
Deposit Insurance Act (12 U.S.C. 1829) is amended by adding at the end
the following new subsections:
``(d) Bank Holding Companies.--
``(1) In <<NOTE: Applicability.>> general.--Subsections (a)
and (b) shall apply to any company (other than a foreign bank)
that is a bank holding
[[Page 120 STAT. 1991]]
company and any organization organized and operated under
section 25A of the Federal Reserve Act or operating under
section 25 of the Federal Reserve Act, as if such bank holding
company or organization were an insured depository institution,
except that such subsections shall be applied for purposes of
this subsection by substituting `Board of Governors of the
Federal Reserve System' for `Corporation' each place that term
appears in such subsections.
``(2) Authority of board.--The Board of Governors of the
Federal Reserve System may provide exemptions, by regulation or
order, from the application of paragraph (1) if the exemption is
consistent with the purposes of this subsection.
``(e) Savings and Loan Holding Companies.--
``(1) In <<NOTE: Applicability.>> general.--Subsections (a)
and (b) shall apply to any savings and loan holding company as
if such savings and loan holding company were an insured
depository institution, except that such subsections shall be
applied for purposes of this subsection by substituting
`Director of the Office of Thrift Supervision' for `Corporation'
each place that term appears in such subsections.
``(2) Authority of director.--The Director of the Office of
Thrift Supervision may provide exemptions, by regulation or
order, from the application of paragraph (1) if the exemption is
consistent with the purposes of this subsection.''.
(b) Enhanced Discretion To Remove Convicted Individuals.--Section
8(e)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1818(e)(2)(A)) is amended--
(1) by striking ``or'' at the end of clause (ii);
(2) by striking the comma at the end of clause (iii) and
inserting ``; or''; and
``(3) by adding at the end the following new clause:
``(iv) an institution-affiliated party of a
subsidiary (other than a bank) of a bank holding
company or of a subsidiary (other than a savings
association) of a savings and loan holding company
has been convicted of any criminal offense
involving dishonesty or a breach of trust or a
criminal offense under section 1956, 1957, or 1960
of title 18, United States Code, or has agreed to
enter into a pretrial diversion or similar program
in connection with a prosecution for such an
offense,''.
SEC. 711. COORDINATION OF STATE EXAMINATION AUTHORITY.
Section 10(h) of the Federal Deposit Insurance Act (12 U.S.C.
1820(h)) is amended to read as follows:
``(h) Coordination of Examination Authority.--
``(1) State bank supervisors of home and host states.--
``(A) Home state of bank.--The appropriate State
bank supervisor of the home State of an insured State
bank has authority to examine and supervise the bank.
``(B) Host state branches.--The State bank
supervisor of the home State of an insured State bank
and any State bank supervisor of an appropriate host
State shall exercise its respective authority to
supervise and examine the branches of the bank in a host
State in accordance with the terms of any applicable
cooperative agreement between the home State bank
supervisor and the State bank supervisor of the relevant
host State.
[[Page 120 STAT. 1992]]
``(C) Supervisory fees.--Except as expressly
provided in a cooperative agreement between the State
bank supervisors of the home State and any host State of
an insured State bank, only the State bank supervisor of
the home State of an insured State bank may levy or
charge State supervisory fees on the bank.
``(2) Host state examination.--
``(A) In general.--With respect to a branch operated
in a host State by an out-of-State insured State bank
that resulted from an interstate merger transaction
approved under section 44, or that was established in
such State pursuant to section 5155(g) of the Revised
Statutes of the United States, the third undesignated
paragraph of section 9 of the Federal Reserve Act or
section 18(d)(4) of this Act, the appropriate State bank
supervisor of such host State may--
``(i) with written notice to the State bank
supervisor of the bank's home State and subject to
the terms of any applicable cooperative agreement
with the State bank supervisor of such home State,
examine such branch for the purpose of determining
compliance with host State laws that are
applicable pursuant to section 24(j), including
those that govern community reinvestment, fair
lending, and consumer protection; and
``(ii) if expressly permitted under and
subject to the terms of a cooperative agreement
with the State bank supervisor of the bank's home
State or if such out-of-State insured State bank
has been determined to be in a troubled condition
by either the State bank supervisor of the bank's
home State or the bank's appropriate Federal
banking agency, participate in the examination of
the bank by the State bank supervisor of the
bank's home State to ascertain that the activities
of the branch in such host State are not conducted
in an unsafe or unsound manner.
``(B) Notice of determination.--
``(i) In general.--The State bank supervisor
of the home State of an insured State bank shall
notify the State bank supervisor of each host
State of the bank if there has been a final
determination that the bank is in a troubled
condition.
``(ii) Timing of notice.--The State bank
supervisor of the home State of an insured State
bank shall provide notice under
clause <<NOTE: Deadline.>> (i) as soon as is
reasonably possible, but in all cases not later
than 15 business days after the date on which the
State bank supervisor has made such final
determination or has received written notification
of such final determination.
``(3) Host state enforcement.--If the State bank supervisor
of a host State determines that a branch of an out-of-State
insured State bank is violating any law of the host State that
is applicable to such branch pursuant to section 24(j),
including a law that governs community reinvestment, fair
lending, or consumer protection, the State bank supervisor of
the host State or, to the extent authorized by the law of the
host State, a host State law enforcement officer may, with
[[Page 120 STAT. 1993]]
written notice to the State bank supervisor of the bank's home
State and subject to the terms of any applicable cooperative
agreement with the State bank supervisor of the bank's home
State, undertake such enforcement actions and proceedings as
would be permitted under the law of the host State as if the
branch were a bank chartered by that host State.
``(4) Cooperative agreement.--
``(A) In general.--The State bank supervisors from 2
or more States may enter into cooperative agreements to
facilitate State regulatory supervision of State banks,
including cooperative agreements relating to the
coordination of examinations and joint participation in
examinations.
``(B) Definition.--For purposes of this subsection,
the term `cooperative agreement' means a written
agreement that is signed by the home State bank
supervisor and the host State bank supervisor to
facilitate State regulatory supervision of State banks,
and includes nationwide or multi-State cooperative
agreements and cooperative agreements solely between the
home State and host State.
``(C) Rule of construction.--Except for State bank
supervisors, no provision of this subsection relating to
such cooperative agreements shall be construed as
limiting in any way the authority of home State and host
State law enforcement officers, regulatory supervisors,
or other officials that have not signed such cooperative
agreements to enforce host State laws that are
applicable to a branch of an out-of-State insured State
bank located in the host State pursuant to section
24(j).
``(5) Federal regulatory authority.--No provision of this
subsection shall be construed as limiting in any way the
authority of any Federal banking agency.
``(6) State taxation authority not affected.--No provision
of this subsection shall be construed as affecting the authority
of any State or political subdivision of any State to adopt,
apply, or administer any tax or method of taxation to any bank,
bank holding company, or foreign bank, or any affiliate of any
bank, bank holding company, or foreign bank, to the extent that
such tax or tax method is otherwise permissible by or under the
Constitution of the United States or other Federal law.
``(7) Definitions.--For purpose of this section, the
following definitions shall apply:
``(A) Host state, home state, out-of-State bank.--
The terms `host State', `home State', and `out-of-State
bank' have the same meanings as in section 44(g).
``(B) State supervisory fees.--The term `State
supervisory fees' means assessments, examination fees,
branch fees, license fees, and all other fees that are
levied or charged by a State bank supervisor directly
upon an insured State bank or upon branches of an
insured State bank.
``(C) Troubled condition.--Solely for purposes of
paragraph (2)(B), an insured State bank has been
determined to be in `troubled condition' if the bank--
[[Page 120 STAT. 1994]]
``(i) has a composite rating, as determined in
its most recent report of examination, of 4 or 5
under the Uniform Financial Institutions Ratings
System;
``(ii) is subject to a proceeding initiated by
the Corporation for termination or suspension of
deposit insurance; or
``(iii) is subject to a proceeding initiated
by the State bank supervisor of the bank's home
State to vacate, revoke, or terminate the charter
of the bank, or to liquidate the bank, or to
appoint a receiver for the bank.
``(D) Final determination.--For purposes of
paragraph (2)(B), the term `final determination' means
the transmittal of a report of examination to the bank
or transmittal of official notice of proceedings to the
bank.''.
SEC. 712. DEPUTY DIRECTOR; SUCCESSION AUTHORITY FOR DIRECTOR OF THE
OFFICE OF THRIFT SUPERVISION.
(a) Establishment of Position of Deputy Director.--Section 3(c)(5)
of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(5)) is amended to read
as follows:
``(5) Deputy director.--
``(A) In general.--The Secretary of the Treasury
shall appoint a Deputy Director, and may appoint not
more than 3 additional Deputy Directors of the Office.
``(B) First deputy director.--If the Secretary of
the Treasury appoints more than 1 Deputy Director of the
Office, the Secretary shall designate one such appointee
as the First Deputy Director.
``(C) Duties.--Each Deputy Director appointed under
this paragraph shall take an oath of office and perform
such duties as the Director shall direct.
``(D) Compensation and benefits.--The Director shall
fix the compensation and benefits for each Deputy
Director in accordance with this Act.''.
(b) Service of Deputy Director as Acting Director.--Section 3(c)(3)
of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(3)) is amended--
(1) by striking ``vacancy.--A vacancy in the position of
Director'' and inserting ``vacancy.--
``(A) In general.--A vacancy in the position of
Director''; and
(2) by adding at the end the following:
``(B) Acting director.--
``(i) In general.--In the event of a vacancy
in the position of Director or during the absence
or disability of the Director, the Deputy Director
shall serve as Acting Director.
``(ii) Succession in case of 2 or more deputy
directors.--If there are 2 or more Deputy
Directors serving at the time a vacancy in the
position of Director occurs or the absence or
disability of the Director commences, the First
Deputy Director shall serve as Acting Director
under clause (i) followed by such other Deputy
Directors under any order of succession the
Director may establish.
[[Page 120 STAT. 1995]]
``(iii) Authority of acting director.--Any
Deputy Director, while serving as Acting Director
under this subparagraph, shall be vested with all
authority, duties, and privileges of the Director
under this Act and any other provision of Federal
law.''.
SEC. 713. <<NOTE: Government organization.>> OFFICE OF THRIFT
SUPERVISION REPRESENTATION ON BASEL COMMITTEE ON BANKING
SUPERVISION.
(a) In General.--Section 912 of the International Lending
Supervision Act of 1983 (12 U.S.C. 3911) is amended--
(1) in the section heading, by inserting at the end the
following: ``and the office of thrift supervision'';
(2) by striking ``As one of the three'' and inserting the
following:
``(a) In General.--As one of the 4''; and
(3) by adding at the end the following:
``(b) As one of the 4 Federal bank regulatory and supervisory
agencies, the Office of Thrift Supervision shall be given equal
representation with the Board of Governors of the Federal Reserve
System, the Office of the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation on the Committee on Banking Regulations
and Supervisory Practices of the Group of Ten Countries and
Switzerland.''.
(b) Conforming Amendments.--Section 910(a) of the International
Lending Supervision Act of 1983 (12 U.S.C. 3909(a)) is amended--
(1) in paragraph (2), by striking ``insured bank'' and
inserting ``insured depository institution''; and
(2) in paragraph (3), by striking ``an `insured bank', as
such term is used in section 3(h)'' and inserting ``an `insured
depository institution', as such term is defined in section
3(c)(2)''.
SEC. 714. FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.
(a) Council Membership.--Section 1004(a) of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3303(a)) is
amended--
(1) in paragraph (4), by striking ``Thrift'' and all that
follows through the end of the paragraph and inserting ``Thrift
Supervision,'';
(2) in paragraph (5) by striking the period at the end and
inserting ``, and''; and
(3) by adding at the end the following:
``(6) the Chairman of the State Liaison Committee.''.
(b) Chairperson of Liaison Committee.--Section 1007 of the Federal
Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3306)
is amended by adding at the end the following: ``Members of the Liaison
Committee shall elect a chairperson from among the members serving on
the committee.''.
SEC. 715. TECHNICAL AMENDMENTS RELATING TO INSURED INSTITUTIONS.
(a) Technical Amendment to the Federal Deposit Insurance Act.--
Section 8(i)(3) of the Federal Deposit Insurance Act (12 U.S.C.
1818(i)(3)) is amended by inserting ``or order'' after ``notice'' each
place that term appears.
(b) Technical Amendment to the Federal Credit Union Act.--Section
206(k)(3) of the Federal Credit Union Act (12 U.S.C.
[[Page 120 STAT. 1996]]
1786(k)(3)) is amended by inserting ``or order'' after ``notice'' each
place that term appears.
SEC. 716. CLARIFICATION OF ENFORCEMENT AUTHORITY.
(a) Actions on Applications, Notices, and Other Requests;
Clarification That Change in Control Conditions Are Enforceable.--
Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is
amended--
(1) in subsection (b)(1), in the first sentence, by striking
``the granting of any application or other request by the
depository institution'' and inserting ``any action on any
application, notice, or other request by the depository
institution or institution-affiliated party,'';
(2) in subsection (e)(1)(A)(i)(III), by striking ``the grant
of any application or other request by such depository
institution'' and inserting ``any action on any application,
notice, or request by such depository institution or
institution-affiliated party''; and
(3) in subsection (i)(2)(A)(iii), by striking ``the grant of
any application or other request by such depository
institution'' and inserting ``any action on any application,
notice, or other request by the depository institution or
institution-affiliated party''.
(b) Clarification That Change in Control Conditions Are
Enforceable.--Section 206 of the Federal Credit Union Act (12 U.S.C.
1786) is amended--
(1) in subsection (b)(1), in the first sentence, by striking
``the granting of any application or other request by the credit
union'' and inserting ``any action on any application, notice,
or other request by the credit union or institution-affiliated
party,'';
(2) in subsection (g)(1)(A)(i)(III), by striking ``the grant
of any application or other request by such credit union'' and
inserting ``any action on any application, notice, or request by
such credit union or institution-affiliated party''; and
(3) in subsection (k)(2)(A)(iii), by striking ``the grant of
any application or other request by such credit union'' and
inserting ``any action on any application, notice, or other
request by the credit union or institution-affiliated party''.
SEC. 717. FEDERAL BANKING AGENCY AUTHORITY TO ENFORCE DEPOSIT INSURANCE
CONDITIONS.
Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is
amended--
(1) in subsection (b)(1), in the 1st sentence--
(A) by striking ``in writing by the agency'' and
inserting ``in writing by a Federal banking agency'';
and
(B) by striking ``the agency may issue and serve''
and inserting ``the appropriate Federal banking agency
for the depository institution may issue and serve'';
(2) in subsection (e)(1)--
(A) in subparagraph (A)(i)(III), by striking ``in
writing by the appropriate Federal banking agency'' and
inserting ``in writing by a Federal banking agency'';
and
(B) in the undesignated matter at the end, by
striking ``the agency may serve upon such party'' and
inserting ``the appropriate Federal banking agency for
the depository institution may serve upon such party'';
and
[[Page 120 STAT. 1997]]
(3) in subsection (i)(2)(A)(iii), by striking ``in writing
by the appropriate Federal banking agency'' and inserting ``in
writing by a Federal banking agency''.
SEC. 718. RECEIVER OR CONSERVATOR CONSENT REQUIREMENT.
(a) Insured Depository Institutions.--Section 11(e)(13) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(13)) is amended by
adding at the end the following:
``(C) Consent requirement.--
``(i) In general.--Except as otherwise
provided by this section or section 15, no person
may exercise any right or power to terminate,
accelerate, or declare a default under any
contract to which the depository institution is a
party, or to obtain possession of or exercise
control over any property of the institution or
affect any contractual rights of the institution,
without the consent of the conservator or
receiver, as appropriate, during the 45-day period
beginning on the date of the appointment of the
conservator, or during the 90-day period beginning
on the date of the appointment of the receiver, as
applicable.
``(ii) Certain exceptions.--No provision of
this subparagraph shall apply to a director or
officer liability insurance contract or a
depository institution bond, to the rights of
parties to certain qualified financial contracts
pursuant to paragraph (8), or to the rights of
parties to netting contracts pursuant to subtitle
A of title IV of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C.
4401 et seq.), or shall be construed as permitting
the conservator or receiver to fail to comply with
otherwise enforceable provisions of such contract.
``(iii) Rule of construction.--Nothing in this
subparagraph shall be construed to limit or
otherwise affect the applicability of title 11,
United States Code.''.
(b) Insured Credit Unions.--Section 207(c)(12) of the Federal Credit
Union Act (12 U.S.C. 1787(c)(12)) is amended by adding the following:
``(C) Consent requirement.--
``(i) In general.--Except as otherwise
provided by this section, no person may exercise
any right or power to terminate, accelerate, or
declare a default under any contract to which the
credit union is a party, or to obtain possession
of or exercise control over any property of the
credit union or affect any contractual rights of
the credit union, without the consent of the
conservator or liquidating agent, as appropriate,
during the 45-day period beginning on the date of
the appointment of the conservator, or during the
90-day period beginning on the date of the
appointment of the liquidating agent, as
applicable.
``(ii) Certain exceptions.--No provision of
this subparagraph shall apply to a director or
officer liability insurance contract or a credit
union bond, or to the rights of parties to certain
qualified financial contracts pursuant to
paragraph (8), or shall be construed as permitting
the conservator or liquidating
[[Page 120 STAT. 1998]]
agent to fail to comply with otherwise enforceable
provisions of such contract.
``(iii) Rule of construction.--Nothing in this
subparagraph shall be construed to limit or
otherwise affect the applicability of title 11,
United States Code.''.
SEC. 719. ACQUISITION OF FICO SCORES.
Section 604(a) of the Fair Credit Reporting Act (15 U.S.C. 1681b(a))
is amended by adding at the end the following:
``(6) To the Federal Deposit Insurance Corporation or the
National Credit Union Administration as part of its preparation
for its appointment or as part of its exercise of powers, as
conservator, receiver, or liquidating agent for an insured
depository institution or insured credit union under the Federal
Deposit Insurance Act or the Federal Credit Union Act, or other
applicable Federal or State law, or in connection with the
resolution or liquidation of a failed or failing insured
depository institution or insured credit union, as
applicable.''.
SEC. 720. ELIMINATION OF CRIMINAL INDICTMENTS AGAINST RECEIVERSHIPS.
(a) Insured Depository Institutions.--Section 15(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1825(b)) is amended by inserting
immediately after paragraph (3) the following:
``(4) Exemption from criminal prosecution.--The Corporation
shall be exempt from all prosecution by the United States or any
State, county, municipality, or local authority for any criminal
offense arising under Federal, State, county, municipal, or
local law, which was allegedly committed by the institution, or
persons acting on behalf of the institution, prior to the
appointment of the Corporation as receiver.''.
(b) Insured Credit Unions.--Section 207(b)(2) of the Federal Credit
Union Act (12 U.S.C. 1787(b)(2)) is amended by adding at the end the
following:
``(K) Exemption from criminal prosecution.--The
Administration shall be exempt from all prosecution by
the United States or any State, county, municipality, or
local authority for any criminal offense arising under
Federal, State, county, municipal, or local law, which
was allegedly committed by a credit union, or persons
acting on behalf of a credit union, prior to the
appointment of the Administration as liquidating
agent.''.
SEC. 721. RESOLUTION OF DEPOSIT INSURANCE DISPUTES.
(a) Insured Depository Institutions.--Section 11(f) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(f)) is amended by striking
paragraphs (3) through (5) and inserting the following:
``(3) Resolution of disputes.--A determination by the
Corporation regarding any claim for insurance coverage shall be
treated as a final determination for purposes of this section.
In its discretion, the Corporation may promulgate regulations
prescribing procedures for resolving any disputed claim relating
to any insured deposit or any determination of insurance
coverage with respect to any deposit.
``(4) Review of corporation determination.--A final
determination made by the Corporation regarding any claim for
insurance coverage shall be a final agency action reviewable in
accordance with chapter 7 of title 5, United States Code,
[[Page 120 STAT. 1999]]
by the United States district court for the Federal judicial
district where the principal place of business of the depository
institution is located.
``(5) Statute <<NOTE: Deadline.>> of limitations.--Any
request for review of a final determination by the Corporation
regarding any claim for insurance coverage shall be filed with
the appropriate United States district court not later than 60
days after the date on which such determination is issued.''.
(b) Insured Credit Unions.--Section 207(d) of the Federal Credit
Union Act (12 U.S.C. 1787(d)) is amended by striking paragraphs (3)
through (5) and inserting the following:
``(3) Resolution of disputes.--A determination by the
Administration regarding any claim for insurance coverage shall
be treated as a final determination for purposes of this
section. In its discretion, the Board may promulgate regulations
prescribing procedures for resolving any disputed claim relating
to any insured deposit or any determination of insurance
coverage with respect to any deposit. A final determination made
by the Board regarding any claim for insurance coverage shall be
a final agency action reviewable in accordance with chapter 7 of
title 5, United States Code, by the United States district court
for the Federal judicial district where the principal place of
business of the credit union is located.
``(4) Statute <<NOTE: Deadline.>> of limitations.--Any
request for review of a final determination by the Board
regarding any claim for insurance coverage shall be filed with
the appropriate United States district court not later than 60
days after the date on which such determination is issued.''.
SEC. 722. RECORDKEEPING.
(a) Insured Depository Institutions.--Section 11(d)(15)(D) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(d)(15)(D)) is amended--
(1) by striking ``After the end of the 6-year period'' and
inserting the following:
``(i) In general.--Except as provided in
clause (ii), after the end of the 6-year period'';
and
(2) by adding at the end the following:
``(ii) Old records.--Notwithstanding clause
(i), the Corporation may destroy records of an
insured depository institution which are at least
10 years old as of the date on which the
Corporation is appointed as the receiver of such
depository institution in accordance with clause
(i) at any time after such appointment is final,
without regard to the 6-year period of limitation
contained in clause (i).''.
(b) Insured Credit Unions.--Section 207(b)(15)(D) of the Federal
Credit Union Act (12 U.S.C. 1787(b)(15)(D)) is amended--
(1) by striking ``After the end of the 6-year period'' and
inserting the following:
``(i) In general.--Except as provided in
clause (ii), after the end of the 6-year period'';
and
(2) by adding at the end the following:
``(ii) Old records.--Notwithstanding clause
(i) the Board may destroy records of an insured
credit union which are at least 10 years old as of
the date on which the Board is appointed as
liquidating agent of
[[Page 120 STAT. 2000]]
such credit union in accordance with clause (i) at
any time after such appointment is final, without
regard to the 6-year period of limitation
contained in clause (i).''.
SEC. 723. PRESERVATION OF RECORDS.
(a) Insured Depository Institutions.--Section 10(f) of the Federal
Deposit Insurance Act (12 U.S.C. 1820(f)) is amended to read as follows:
``(f) Preservation of Agency Records.--
``(1) In general.--A Federal banking agency may cause any
and all records, papers, or documents kept by the agency or in
the possession or custody of the agency to be--
``(A) photographed or microphotographed or otherwise
reproduced upon film; or
``(B) preserved in any electronic medium or format
which is capable of--
``(i) being read or scanned by computer; and
``(ii) being reproduced from such electronic
medium or format by printing any other form of
reproduction of electronically stored data.
``(2) Treatment as original records.--Any photographs,
microphotographs, or photographic film or copies thereof
described in paragraph (1)(A) or reproduction of electronically
stored data described in paragraph (1)(B) shall be deemed to be
an original record for all purposes, including introduction in
evidence in all State and Federal courts or administrative
agencies, and shall be admissible to prove any act, transaction,
occurrence, or event therein recorded.
``(3) Authority of the federal banking agencies.--Any
photographs, microphotographs, or photographic film or copies
thereof described in paragraph (1)(A) or reproduction of
electronically stored data described in paragraph (1)(B) shall
be preserved in such manner as the Federal banking agency shall
prescribe, and the original records, papers, or documents may be
destroyed or otherwise disposed of as the Federal banking agency
may direct.''.
(b) Insured Credit Unions.--Section 206(s) of the Federal Credit
Union Act (12 U.S.C. 1786(s)) is amended by adding at the end the
following:
``(9) Preservation of records.--
``(A) In general.--The Board may cause any and all
records, papers, or documents kept by the Administration
or in the possession or custody of the Administration to
be--
``(i) photographed or microphotographed or
otherwise reproduced upon film; or
``(ii) preserved in any electronic medium or
format which is capable of--
``(I) being read or scanned by
computer; and
``(II) being reproduced from such
electronic medium or format by printing
or any other form of reproduction of
electronically stored data.
``(B) Treatment as original records.--Any
photographs, micrographs, or photographic film or copies
thereof described in subparagraph (A)(i) or reproduction
of electronically stored data described in subparagraph
(A)(ii)
[[Page 120 STAT. 2001]]
shall be deemed to be an original record for all
purposes, including introduction in evidence in all
State and Federal courts or administrative agencies, and
shall be admissible to prove any act, transaction,
occurrence, or event therein recorded.
``(C) Authority of the administration.--Any
photographs, microphotographs, or photographic film or
copies thereof described in subparagraph (A)(i) or
reproduction of electronically stored data described in
subparagraph (A)(ii) shall be preserved in such manner
as the Administration shall prescribe, and the original
records, papers, or documents may be destroyed or
otherwise disposed of as the Administration may
direct.''.
SEC. 724. TECHNICAL AMENDMENTS TO INFORMATION SHARING PROVISION IN THE
FEDERAL DEPOSIT INSURANCE ACT.
Section 11(t) of the Federal Deposit Insurance Act (12 U.S.C.
1821(t)) is amended--
(1) in paragraph (1), by inserting ``, in any capacity,''
after ``A covered agency''; and
(2) in paragraph (2)(A)--
(A) in clause (i), by striking ``appropriate'';
(B) by striking clause (ii); and
(C) by redesignating clauses (iii) through (vi) as
clauses (ii) through (v), respectively.
SEC. 725. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO BANKS
OPERATING UNDER THE CODE OF LAW FOR THE DISTRICT OF
COLUMBIA.
(a) Federal Reserve Act.--The Federal Reserve Act (12 U.S.C. 221 et
seq.) is amended--
(1) in the second undesignated paragraph of the first
section (12 U.S.C. 221), by adding at the end the following:
``For purposes of this Act, a State bank includes any bank which
is operating under the Code of Law for the District of
Columbia.''; and
(2) in the first sentence of the first undesignated
paragraph of section 9 (12 U.S.C. 321), by striking
``incorporated by special law of any State, or'' and inserting
``incorporated by special law of any State, operating under the
Code of Law for the District of Columbia, or''.
(b) Bank Conservation Act.--Section 202 of the Bank Conservation Act
(12 U.S.C. 202) is amended--
(1) by striking ``means (1) any national'' and inserting
``means any national''; and
(2) by striking ``, and (2) any bank or trust company
located in the District of Columbia and operating under the
supervision of the Comptroller of the Currency''.
(c) Depository Institution Deregulation and Monetary Control Act of
1980.--Part C of title VII of the Depository Institution Deregulation
and Monetary Control Act of 1980 (12 U.S.C. 216 et seq.) is amended--
(1) in paragraph (1) of section 731 (12 U.S.C. 216(1)), by
striking ``and closed banks in the District of Columbia''; and
(2) in paragraph (2) of section 732 (12 U.S.C. 216a(2)), by
striking ``or closed banks in the District of Columbia''.
[[Page 120 STAT. 2002]]
(d) Federal Deposit Insurance Act.--Section 3(a)(2)(B) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(a)(2)(B)) is amended by
striking ``(except a national bank)''.
(e) National Bank Consolidation and Merger Act.--Section 7(1) of the
National Bank Consolidation and Merger Act (12 U.S.C. 215b(1)) is
amended by striking ``(except a national banking association located in
the District of Columbia)''.
(f) Act of August 17, 1950.--Section 1(a) of the Act entitled ``An
Act to provide for the conversion of national banking associations into
and their merger or consolidation with State banks, and for other
purposes'' and approved August 17, 1950 (12 U.S.C. 214(a)) is amended by
striking ``(except a national banking association)''.
(g) Federal Trade Commission Act.--Section 18(f)(2) of the Federal
Trade Commission Act (15 U.S.C. 57a(f)(2)) is amended--
(1) in subparagraph (A), by striking ``, banks operating
under the code of law for the District of Columbia,''; and
(2) in subparagraph (B), by striking ``and banks operating
under the code of law for the District of Columbia''.
SEC. 726. TECHNICAL CORRECTIONS TO THE FEDERAL CREDIT UNION ACT.
The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended as
follows:
(1) In section 101(3), <<NOTE: 12 USC 1752.>> strike ``and''
after the semicolon.
(2) In section 101(5), strike the terms ``account account''
and ``account accounts'' each place any such term appears and
insert ``account''.
(3) In section 107(5)(E), <<NOTE: 12 USC 1757.>> strike the
period at the end and insert a semicolon.
(4) In each of paragraphs (6) and (7) of section 107, strike
the period at the end and insert a semicolon.
(5) In section 107(7)(D), strike ``the Federal Savings and
Loan Insurance Corporation or''.
(6) In section 107(7)(E), strike ``the Federal Home Loan
Bank Board,'' and insert ``the Federal Housing Finance Board,''.
(7) In section 107(9), strike ``subchapter III'' and insert
``title III''.
(8) In section 107(13), strike ``and'' after the semicolon
at the end.
(9) In section 109(c)(2)(A)(i), <<NOTE: 12 USC
1759.>> strike ``(12 U.S.C. 4703(16))''.
(10) In section 120(h), <<NOTE: 12 USC 1766.>> strike ``the
Act approved July 30, 1947 (6 U.S.C., secs. 6-13),'' and insert
``chapter 93 of title 31, United States Code,''.
(11) In section 201(b)(5), <<NOTE: 12 USC 1781.>> strike
``section 116 of''.
(12) In section 202(h)(3), <<NOTE: 12 USC 1782.>> strike
``section 207(c)(1)'' and insert ``section 207(k)(1)''.
(13) In section 204(b), <<NOTE: 12 USC 1784.>> strike ``such
others powers'' and insert ``such other powers''.
(14) In section 206(e)(3)(D), <<NOTE: 12 USC 1786.>> strike
``and'' after the semicolon at the end.
(15) In section 206(f)(1), strike ``subsection (e)(3)(B)''
and insert ``subsection (e)(3)''.
(16) In section 206(g)(7)(D), strike ``and subsection (1)''.
(17) In section 206(t)(2)(B), insert ``regulations'' after
``as defined in''.
[[Page 120 STAT. 2003]]
(18) In section 206(t)(2)(C), strike ``material affect'' and
insert ``material effect''.
(19) In section 206(t)(4)(A)(ii)(II), strike ``or'' after
the semicolon at the end.
(20) In section 206A(a)(2)(A), <<NOTE: 12 USC
1786a.>> strike ``regulator agency'' and insert ``regulatory
agency''.
(21) In section 207(c)(5)(B)(i)(I), <<NOTE: 12 USC
1787.>> insert ``and'' after the semicolon at the end.
(22) In the heading for subparagraph (A) of section
207(d)(3), strike ``to'' and insert ``with''.
(23) In section 207(f)(3)(A), strike ``category or
claimants'' and insert ``category of claimants''.
(24) In section 209(a)(8), <<NOTE: 12 USC 1789.>> strike the
period at the end and insert a semicolon.
(25) In section 216(n), <<NOTE: 12 USC 1790d.>> insert ``any
action'' before ``that is required''.
(26) In section 304(b)(3), <<NOTE: 12 USC 1795c.>> strike
``the affairs or such credit union'' and insert ``the affairs of
such credit union''.
(27) In section 310, <<NOTE: 12 USC 1795i.>> strike
``section 102(e)'' and insert ``section 102(d)''.
SEC. 727. REPEAL OF OBSOLETE PROVISIONS OF THE BANK HOLDING COMPANY ACT
OF 1956.
(a) In General.--Section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841) is amended--
(1) in subsection (c)(2), by striking subparagraphs (I) and
(J); and
(2) by striking subsection (m) and inserting the following:
``(m) [Repealed]''.
(b) Technical and Conforming Amendments.--Paragraphs (1) and (2) of
section 4(h) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(h))
are each amended by striking ``(G), (H), (I), or (J) of section
2(c)(2)'' and inserting ``(G), or (H) of section 2(c)(2)''.
SEC. 728. DEVELOPMENT OF MODEL PRIVACY FORM.
Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803), as
amended by section 609, is amended by adding at the end the following:
``(e) Model Forms.--
``(1) In general.--The agencies referred to in section
504(a)(1) shall jointly develop a model form which may be used,
at the option of the financial institution, for the provision of
disclosures under this section.
``(2) Format.--A model form developed under paragraph (1)
shall--
``(A) be comprehensible to consumers, with a clear
format and design;
``(B) provide for clear and conspicuous disclosures;
``(C) enable consumers easily to identify the
sharing practices of a financial institution and to
compare privacy practices among financial institutions;
and
``(D) be succinct, and use an easily readable type
font.
``(3) Timing.--A <<NOTE: Deadline.>> model form required to
be developed by this subsection shall be issued in proposed form
for public comment not later than 180 days after the date of
enactment of this subsection.
[[Page 120 STAT. 2004]]
``(4) Safe harbor.--Any financial institution that elects to
provide the model form developed by the agencies under this
subsection shall be deemed to be in compliance with the
disclosures required under this section.''.
TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCEMENT PROGRAMS.
(a) In General.--The Fair Debt Collection Practices Act (15 U.S.C.
1692 et seq.) is amended--
(1) by redesignating section 818 as section 819; <<NOTE: 15
USC 1692 note.>> and
(2) by inserting after section 817 the following:
``Sec. 818. <<NOTE: 15 USC 1692p.>> Exception for certain bad check
enforcement programs operated by private
entities
``(a) In General.--
``(1) Treatment <<NOTE: Contracts.>> of certain private
entities.--Subject to paragraph (2), a private entity shall be
excluded from the definition of a debt collector, pursuant to
the exception provided in section 803(6), with respect to the
operation by the entity of a program described in paragraph
(2)(A) under a contract described in paragraph (2)(B).
``(2) Conditions of applicability.--Paragraph (1) shall
apply if--
``(A) a State or district attorney establishes,
within the jurisdiction of such State or district
attorney and with respect to alleged bad check
violations that do not involve a check described in
subsection (b), a pretrial diversion program for alleged
bad check offenders who agree to participate voluntarily
in such program to avoid criminal prosecution;
``(B) a private entity, that is subject to an
administrative support services contract with a State or
district attorney and operates under the direction,
supervision, and control of such State or district
attorney, operates the pretrial diversion program
described in subparagraph (A); and
``(C) in the course of performing duties delegated
to it by a State or district attorney under the
contract, the private entity referred to in subparagraph
(B)--
``(i) complies with the penal laws of the
State;
``(ii) conforms with the terms of the contract
and directives of the State or district attorney;
``(iii) does not exercise independent
prosecutorial discretion;
``(iv) contacts any alleged offender referred
to in subparagraph (A) for purposes of
participating in a program referred to in such
paragraph--
``(I) only as a result of any
determination by the State or district
attorney that probable cause of a bad
check violation under State penal law
exists, and that contact with the
alleged offender for purposes of
participation in the program is
appropriate; and
[[Page 120 STAT. 2005]]
``(II) the alleged offender has
failed to pay the bad check after demand
for payment, pursuant to State law, is
made for payment of the check amount;
``(v) includes as part of an initial written
communication with an alleged offender a clear and
conspicuous statement that--
``(I) the alleged offender may
dispute the validity of any alleged bad
check violation;
``(II) where the alleged offender
knows, or has reasonable cause to
believe, that the alleged bad check
violation is the result of theft or
forgery of the check, identity theft, or
other fraud that is not the result of
the conduct of the alleged offender, the
alleged offender may file a crime report
with the appropriate law enforcement
agency; and
``(III) <<NOTE: Deadline.>> if the
alleged offender notifies the private
entity or the district attorney in
writing, not later than 30 days after
being contacted for the first time
pursuant to clause (iv), that there is a
dispute pursuant to this subsection,
before further restitution efforts are
pursued, the district attorney or an
employee of the district attorney
authorized to make such a determination
makes a determination that there is
probable cause to believe that a crime
has been committed; and
``(vi) charges only fees in connection with
services under the contract that have been
authorized by the contract with the State or
district attorney.
``(b) Certain Checks Excluded.--A check is described in this
subsection if the check involves, or is subsequently found to involve--
``(1) a postdated check presented in connection with a
payday loan, or other similar transaction, where the payee of
the check knew that the issuer had insufficient funds at the
time the check was made, drawn, or delivered;
``(2) a stop payment order where the issuer acted in good
faith and with reasonable cause in stopping payment on the
check;
``(3) a check dishonored because of an adjustment to the
issuer's account by the financial institution holding such
account without providing notice to the person at the time the
check was made, drawn, or delivered;
``(4) a check for partial payment of a debt where the payee
had previously accepted partial payment for such debt;
``(5) a check issued by a person who was not competent, or
was not of legal age, to enter into a legal contractual
obligation at the time the check was made, drawn, or delivered;
or
``(6) a check issued to pay an obligation arising from a
transaction that was illegal in the jurisdiction of the State or
district attorney at the time the check was made, drawn, or
delivered.
``(c) Definitions.--For <<NOTE: Applicability.>> purposes of this
section, the following definitions shall apply:
[[Page 120 STAT. 2006]]
``(1) State or district attorney.--The term `State or
district attorney' means the chief elected or appointed
prosecuting attorney in a district, county (as defined in
section 2 of title 1, United States Code), municipality, or
comparable jurisdiction, including State attorneys general who
act as chief elected or appointed prosecuting attorneys in a
district, county (as so defined), municipality or comparable
jurisdiction, who may be referred to by a variety of titles such
as district attorneys, prosecuting attorneys, commonwealth's
attorneys, solicitors, county attorneys, and state's attorneys,
and who are responsible for the prosecution of State crimes and
violations of jurisdiction-specific local ordinances.
``(2) Check.--The term `check' has the same meaning as in
section 3(6) of the Check Clearing for the 21st Century Act.
``(3) Bad check violation.--The term `bad check violation'
means a violation of the applicable State criminal law relating
to the writing of dishonored checks.''.
(b) Clerical Amendment.--The table of sections for the Fair Debt
Collection Practices Act (15 U.S.C. 1692 et seq.) is amended--
(1) by redesignating the item relating to section 818 as
section 819; and
(2) by inserting after the item relating to section 817 the
following new item:
``818. Exception for certain bad check enforcement programs operated by
private entities.''.
SEC. 802. OTHER AMENDMENTS.
(a) Legal Pleadings.--Section 809 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692g) is amended by adding at the end the
following new subsection:
``(d) Legal Pleadings.--A communication in the form of a formal
pleading in a civil action shall not be treated as an initial
communication for purposes of subsection (a).''.
(b) Notice Provisions.--Section 809 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692g) is amended by adding after subsection
(d) (as added by subsection (a) of this section) the following new
subsection:
``(e) Notice Provisions.--The sending or delivery of any form or
notice which does not relate to the collection of a debt and is
expressly required by the Internal Revenue Code of 1986, title V of
Gramm-Leach-Bliley Act, or any provision of Federal or State law
relating to notice of data security breach or privacy, or any regulation
prescribed under any such provision of law, shall not be treated as an
initial communication in connection with debt collection for purposes of
this section.''.
(c) Establishment of Right To Collect Within the First 30 Days.--
Section 809(b) of the Fair Debt Collection Practices Act (15 U.S.C.
1692g(b)) is amended by adding at the end the following new sentences:
``Collection activities and communications that do not otherwise violate
this title may continue during the 30-day period referred to in
subsection (a) unless the consumer has notified the debt collector in
writing that the debt, or any portion of the debt, is disputed or that
the consumer requests the name and
[[Page 120 STAT. 2007]]
address of the original creditor. Any collection activities and
communication during the 30-day period may not overshadow or be
inconsistent with the disclosure of the consumer's right to dispute the
debt or request the name and address of the original creditor.''.
TITLE IX--CASH MANAGEMENT MODERNIZATION
SEC. 901. COLLATERAL MODERNIZATION.
(a) In General.--Section 9301(2) of title 31, United States Code, is
amended to read as follows:
``(2) `eligible obligation' means any security designated as
acceptable in lieu of a surety bond by the Secretary of the
Treasury.''.
(b) Use of Eligible Obligations Instead of Surety Bonds.--Section
9303(a)(2) of title 31, United States Code, is amended to read as
follows:
``(2) as determined by the Secretary of the Treasury, have a
market value that is equal to or greater than the amount of the
required surety bond; and''.
(c) Technical Amendments.--Section 9303 of title 31, United States
Code, is amended--
(1) in the section heading, by striking ``Government
obligations'' and inserting ``eligible obligations'';
(2) in subsection (f), by striking ``Government
obligations'' and inserting ``eligible obligations'';
(3) by striking ``a Government obligation'' each place that
term appears and inserting ``an eligible obligation''; and
(4) by striking ``Government obligation'' each place that
term appears and inserting ``eligible obligation''.
TITLE X--STUDIES AND REPORTS
SEC. 1001. STUDY AND REPORT BY THE COMPTROLLER GENERAL ON THE CURRENCY
TRANSACTION REPORT FILING SYSTEM.
(a) In General.--The Comptroller General of the United States shall
conduct a study on the volume of currency transaction reports filed with
the Secretary of the Treasury under section 5313(a) of title 31, United
States Code.
(b) Purpose.--The purpose of the study required under subsection (a)
shall be--
(1) to evaluate, on the basis of actual filing data,
patterns of currency transaction reports filed by depository
institutions of all sizes and locations; and
(2) to identify whether and the extent to which the filing
rules for currency transaction reports described in section
5313(a) of title 31, United States Code--
(A) are burdensome; and
(B) can or should be modified to reduce such burdens
without harming the usefulness of such filing rules to
Federal, State, and local anti-terrorism, law
enforcement, and regulatory operations.
(c) Period Covered.--The study required under subsection (a) shall
cover the period beginning at least 3 calendar years prior to the date
of enactment of this section.
[[Page 120 STAT. 2008]]
(d) Content.--The study required under subsection (a) shall include
a detailed evaluation of--
(1) the extent to which depository institutions are availing
themselves of the exemption system for the filing of currency
transaction reports set forth in section 103.22(d) of title 31,
Code of Federal Regulations, as in effect during the study
period (in this section referred to as the ``exemption
system''), including specifically, for the study period--
(A) the number of currency transaction reports filed
(out of the total annual numbers) involving companies
that are listed on the New York Stock Exchange or the
NASDAQ National Market;
(B) the number of currency transaction reports filed
by the 100 largest depository institutions in the United
States by asset size, and thereafter in tiers of 100, by
asset size;
(C) the number of currency transaction reports filed
by the 200 smallest depository institutions in the
United States, including the number of such currency
transaction reports involving companies listed on the
New York Stock Exchange or the NASDAQ National Market;
and
(D) the number of currency transaction reports that
would have been filed during the filing period if the
exemption system had been used by all depository
institutions in the United States;
(2) what types of depository institutions are using the
exemption system, and the extent to which such exemption system
is used;
(3) difficulties that limit the willingness or ability of
depository institutions to reduce their currency transaction
reports reporting burden by making use of the exemption system,
including considerations of cost, especially in the case of
small depository institutions;
(4) the extent to which bank examination difficulties have
limited the use of the exemption system, especially with respect
to--
(A) the exemption of privately-held companies
permitted under such exemption system; and
(B) whether, on a sample basis, the reaction of bank
examiners to implementation of such exemption system is
justified or inhibits use of such exemption system
without an offsetting compliance benefit;
(5) ways to improve the use of the exemption system by
depository institutions, including making such exemption system
mandatory in order to reduce the volume of currency transaction
reports unnecessarily filed; and
(6) the usefulness of currency transaction reports filed to
law enforcement agencies, taking into account--
(A) advances in information technology;
(B) the impact, including possible loss of
investigative data, that various changes in the
exemption system would have on the usefulness of such
currency transaction reports; and
(C) changes that could be made to the exemption
system without affecting the usefulness of currency
transaction reports.
[[Page 120 STAT. 2009]]
(e) Assistance.--The Secretary of the Treasury shall provide such
information processing and other assistance, including from the
Commissioner of the Internal Revenue Service and the Director of the
Financial Crimes Enforcement Network, to the Comptroller General in
analyzing currency transaction report filings for the study period
described in subsection (c), as is necessary to provide the information
required by subsection (a).
(f) Views.--The study required under subsection (a) shall, if
appropriate, include a discussion of the views of a representative
sample of Federal, State, and local law enforcement and regulatory
officials and officials of depository institutions of all sizes.
(g) Recommendations.--The study required under subsection (a) shall,
if appropriate, include recommendations for changes to the exemption
system that would reflect a reduction in unnecessary cost to depository
institutions, assuming reasonably full implementation of such exemption
system, without reducing the usefulness of the currency transaction
report filing system to anti-terrorism, law enforcement, and regulatory
operations.
(h) Report.--Not later than 15 months after the date of enactment of
this section, the Comptroller General shall submit a report on the study
required under subsection (a) to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives.
SEC. 1002. STUDY AND REPORT ON INSTITUTION DIVERSITY AND CONSOLIDATION.
(a) Study.--The Comptroller General of the United States shall
conduct a study regarding--
(1) the vast diversity in the size and complexity of
institutions in the banking and financial services sector,
including the differences in capital, market share, geographical
limitations, product offerings, and general activities;
(2) the differences in powers among the depository
institution charters, including--
(A) identification of the historical trends in the
evolution of depository institution charters;
(B) an analysis of the impact of charter differences
to the overall safety and soundness of the banking
industry, and the effectiveness of the applicable
depository institution regulator; and
(C) an analysis of the impact that the availability
of options for depository institution charters on the
development of the banking industry;
(3) the impact that differences of size and overall
complexity among financial institutions makes with respect to
regulatory oversight, efficiency, safety and soundness, and
charter options for financial institutions; and
(4) the aggregate cost and breakdown associated with
regulatory compliance for banks, savings associations, credit
unions, or any other financial institution, including potential
disproportionate impact that the cost of compliance may pose on
smaller institutions, given the percentage of personnel that the
institution must dedicate solely to compliance.
(b) Considerations.--In conducting the study under subsection (a),
the Comptroller General shall consider the efficacy and efficiency of
the consolidation of financial regulators, as well as charter
simplification and homogenization.
[[Page 120 STAT. 2010]]
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall submit a
report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives on the results of the study required by this section.
Approved October 13, 2006.
LEGISLATIVE HISTORY--S. 2856:
---------------------------------------------------------------------------
SENATE REPORTS: No. 109-
256 (Comm. on Banking, Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 152 (2006):
May 25, considered and passed Senate.
Sept. 27, considered and passed House, amended.
Sept. 29, Senate concurred in House amendment.
<all>