[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1389 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 1389
To improve the mortgage finance system and the regulation of financial
institutions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2015
Mr. Barr (for himself and Mr. Tipton) introduced the following bill;
which was referred to the Committee on Financial Services, and in
addition to the Committee on Agriculture, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To improve the mortgage finance system and the regulation of financial
institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``The American Jobs and Community
Revitalization Act of 2015''.
SEC. 2. IMPROVED CUSTOMER ACCESS TO MORTGAGES.
(a) Application.--Not later than 90 days after the date of the
enactment of this Act, the Bureau of Consumer Financial Protection
shall establish an application process under which a person who lives
or does business in a State may, with respect to an area identified by
the person in such State that has not been designated by the Bureau as
a rural area for purposes of a Federal consumer financial law (as
defined under section 1002 of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5481)), apply for such area to be so designated.
(b) Evaluation Criteria.--When evaluating an application submitted
under subsection (a), the Bureau shall take into consideration the
following factors:
(1) Criteria used by the Director of the Bureau of the
Census for classifying geographical areas as rural or urban.
(2) Criteria used by the Director of the Office of
Management and Budget to designate counties as metropolitan or
micropolitan or neither.
(3) Criteria used by the Secretary of Agriculture to
determine property eligibility for rural development programs.
(4) The Department of Agriculture rural-urban commuting
area codes.
(5) A written opinion provided by the State's bank
supervisor, as defined under section 3(r) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(r)).
(6) Population density.
(c) Public Comment Period.--
(1) In general.--Not later than 60 days after receiving an
application submitted under subsection (a), the Bureau shall--
(A) publish such application in the Federal
Register; and
(B) make such application available for public
comment for not fewer than 90 days.
(2) Limitation on additional applications.--Nothing in this
section shall be construed to require the Bureau, during the
public comment period with respect to an application submitted
under subsection (a), to accept an additional application with
respect to the area that is the subject of the initial
application.
(d) Decision on Designation.--Not later than 90 days after the end
of the public comment period under subsection (c)(1) for an
application, the Bureau shall--
(1) grant or deny such application, in whole or in part;
and
(2) publish such grant or denial in the Federal Register,
along with an explanation of what factors the Bureau relied on
in making such determination.
(e) Subsequent Applications.--A decision by the Bureau under
subsection (d) to deny an application for an area to be designated as a
rural area shall not preclude the Bureau from accepting a subsequent
application submitted under subsection (a) for such area to be so
designated, so long as such subsequent application is made after the
end of the 90-day period beginning on the date that the Bureau denies
the application under subsection (d).
(f) Sunset.--This section shall cease to have any force or effect
after the end of the 2-year period beginning on the date of the
enactment of this Act.
SEC. 3. SAFE HARBOR FOR CERTAIN LOANS HELD ON PORTFOLIO.
(a) In General.--Section 129C of the Truth in Lending Act (15
U.S.C. 1639c) is amended by adding at the end the following:
``(j) Safe Harbor for Certain Loans Held on Portfolio.--
``(1) Safe harbor for creditors that are depository
institutions.--
``(A) In general.--A creditor that is a depository
institution shall not be subject to suit for failure to
comply with subsection (a), (c)(1), or (f)(2) of this
section or section 129H with respect to a residential
mortgage loan, and the banking regulators shall treat
such loan as a qualified mortgage, if--
``(i) the creditor has, since the
origination of the loan, held the loan on the
balance sheet of the creditor; and
``(ii) all prepayment penalties with
respect to the loan comply with the limitations
described under subsection (c)(3).
``(B) Exception for certain transfers.--In the case
of a depository institution that transfers a loan
originated by that institution to another depository
institution by reason of the bankruptcy or failure of
the originating depository institution or the purchase
of the originating depository institution, the
depository institution transferring such loan shall be
deemed to have complied with the requirement under
subparagraph (A)(i).
``(2) Safe harbor for mortgage originators.--A mortgage
originator shall not be subject to suit for a violation of
section 129B(c)(3)(B) for steering a consumer to a residential
mortgage loan if--
``(A) the creditor of such loan is a depository
institution and has informed the mortgage originator
that the creditor intends to hold the loan on the
balance sheet of the creditor for the life of the loan;
and
``(B) the mortgage originator informs the consumer
that the creditor intends to hold the loan on the
balance sheet of the creditor for the life of the loan.
``(3) Definitions.--For purposes of this subsection:
``(A) Banking regulators.--The term `banking
regulators' means the Federal banking agencies, the
Bureau, and the National Credit Union Administration.
``(B) Depository institution.--The term `depository
institution' has the meaning given that term under
section 19(b)(1) of the Federal Reserve Act (12 U.S.C.
505(b)(1)).
``(C) Federal banking agencies.--The term `Federal
banking agencies' has the meaning given that term under
section 3 of the Federal Deposit Insurance Act.''.
(b) Rule of Construction.--Nothing in the amendment made by this
section may be construed as preventing a balloon loan from qualifying
for the safe harbor provided under section 129C(j) of the Truth in
Lending Act if the balloon loan otherwise meets all of the requirements
under such subsection (j), regardless of whether the balloon loan meets
the requirements described under clauses (i) through (iv) of section
129C(b)(2)(E) of such Act (15 U.S.C. 1639c(b)(2)(E)).
SEC. 4. REVIEW AND RECONCILIATION OF CONFLICTING AND UNNECESSARY
REGULATIONS.
(a) Federal Deposit Insurance Corporation.--Section 9 of the
Federal Deposit Insurance Act (12 U.S.C. 1819) is amended by adding at
the end the following:
``(c) Review of Regulations.--
``(1) In general.--Before issuing a regulation or order the
Corporation shall assess other Federal regulations and orders
to determine the interaction between the proposed regulation or
order and other Federal regulations and orders.
``(2) Considerations.--In making a determination of the
interaction between the proposed regulation or order and other
Federal regulations, the Corporation shall evaluate the
following:
``(A) Whether the proposed regulation or order is
in conflict with other Federal regulations or orders.
``(B) Whether the proposed regulation or order is
inconsistent with other Federal regulations or orders.
``(C) Whether the proposed regulation or order is
duplicative of other Federal regulations or orders.
``(D) Whether other Federal regulations or orders
are outdated.
``(3) Resolving duplicative or inconsistent regulations or
orders.--The Corporation shall take all available measures
under current law to resolve any duplicative or inconsistent
existing regulation or order with any proposed regulation or
order before issuing a final regulation or order.
``(4) Report to congress.--Not later than the end of the
60-day period beginning on the date the Corporation makes a
determination under paragraph (2), the Corporation shall issue
a report to the Congress containing recommendations made by the
Corporation, including any recommendations of Federal laws or
regulations that should be repealed or amended, so that the
Congress may repeal or amend any conflicting, inconsistent,
duplicative, or outdated laws or regulations.
``(5) Limitation on judicial review.--Notwithstanding any
other provision of law, a court may not compel action or hold
unlawful and set aside any action solely on the basis of
compliance or noncompliance with the requirements of this
subsection.
``(6) Definitions.--For purposes of this subsection:
``(A) Regulation and order.--The terms `regulation'
and `order' shall have the meaning given those terms,
respectively, by the Corporation, and the term `other
Federal regulations and orders' shall mean regulations
and orders of the Federal financial regulators, other
than the Corporation.
``(B) Federal financial regulators.--The term
`Federal financial regulators' means the Board of
Governors of the Federal Reserve System, the Bureau of
Consumer Financial Protection, the Commodity Futures
Trading Commission, the Comptroller of the Currency,
the Corporation, the National Credit Union
Administration, and the Securities and Exchange
Commission.''.
(b) Office of the Comptroller of the Currency.--Section 324 of the
Revised Statutes of the United States (12 U.S.C. 1) is amended by
adding at the end the following:
``(c) Review of Regulations.--
``(1) In general.--Before issuing a regulation or order the
Comptroller of the Currency shall assess other Federal
regulations and orders to determine the interaction between the
proposed regulation or order and other Federal regulations and
orders.
``(2) Considerations.--In making a determination of the
interaction between the proposed regulation or order and other
Federal regulations, the Comptroller shall evaluate the
following:
``(A) Whether the proposed regulation or order is
in conflict with other Federal regulations or orders.
``(B) Whether the proposed regulation or order is
inconsistent with other Federal regulations or orders.
``(C) Whether the proposed regulation or order is
duplicative of other Federal regulations or orders.
``(D) Whether other Federal regulations or orders
are outdated.
``(3) Resolving duplicative or inconsistent regulations or
orders.--The Comptroller shall take all available measures
under current law to resolve any duplicative or inconsistent
existing regulation or order with any proposed regulation or
order before issuing a final regulation or order.
``(4) Report to congress.--Not later than the end of the
60-day period beginning on the date the Comptroller makes a
determination under paragraph (2), the Comptroller shall issue
a report to the Congress containing recommendations made by the
Comptroller, including any recommendations of Federal laws or
regulations that should be repealed or amended, so that the
Congress may repeal or amend any conflicting, inconsistent,
duplicative, or outdated laws or regulations.
``(5) Limitation on judicial review.--Notwithstanding any
other provision of law, a court may not compel action or hold
unlawful and set aside any action solely on the basis of
compliance or noncompliance with the requirements of this
subsection.
``(6) Definitions.--For purposes of this subsection, the
terms `regulation' and `order' shall have the meaning given
those terms, respectively, by the Comptroller, and the term
`other Federal regulations and orders' shall mean regulations
and orders of the Federal financial regulators (as defined
under section 9(c)(6) of the Federal Deposit Insurance Act),
other than the Comptroller.''.
(c) Board of Governors of the Federal Reserve System.--Section 10
of the Federal Reserve Act is amended by inserting before paragraph
(12) the following:
``(11) Review of regulations.--
``(A) In general.--Before issuing a regulation or
order the Board of Governors of the Federal Reserve
System shall assess other Federal regulations and
orders to determine the interaction between the
proposed regulation or order and other Federal
regulations and orders.
``(B) Considerations.--In making a determination of
the interaction between the proposed regulation or
order and other Federal regulations, the Board of
Governors shall evaluate the following:
``(i) Whether the proposed regulation or
order is in conflict with other Federal
regulations or orders.
``(ii) Whether the proposed regulation or
order is inconsistent with other Federal
regulations or orders.
``(iii) Whether the proposed regulation or
order is duplicative of other Federal
regulations or orders.
``(iv) Whether other Federal regulations or
orders are outdated.
``(C) Resolving duplicative or inconsistent
regulations or orders.--The Board of Governors shall
take all available measures under current law to
resolve any duplicative or inconsistent existing
regulation or order with any proposed regulation or
order before issuing a final regulation or order.
``(D) Report to congress.--Not later than the end
of the 60-day period beginning on the date the Board of
Governors makes a determination under subparagraph (A),
the Board of Governors shall issue a report to the
Congress containing recommendations made by the Board
of Governors, including any recommendations of Federal
laws or regulations that should be repealed or amended,
so that the Congress may repeal or amend any
conflicting, inconsistent, duplicative, or outdated
laws or regulations.
``(E) Limitation on judicial review.--
Notwithstanding any other provision of law, a court may
not compel action or hold unlawful and set aside any
action solely on the basis of compliance or
noncompliance with the requirements of this paragraph.
``(F) Definitions.--For purposes of this paragraph,
the terms `regulation' and `order' shall have the
meaning given those terms, respectively, by the Board
of Governors, and the term `other Federal regulations
and orders' shall mean regulations and orders of the
Federal financial regulators (as defined under section
9(c)(6) of the Federal Deposit Insurance Act), other
than the Board of Governors.''.
(d) Bureau of Consumer Financial Protection.--Section 1022 of the
Consumer Financial Protection Act of 2010 (12 U.S.C. 5512) is amended
by adding at the end the following:
``(e) Review of Regulations.--
``(1) In general.--Before issuing a regulation or order the
Bureau shall assess other Federal regulations and orders to
determine the interaction between the proposed regulation or
order and other Federal regulations and orders.
``(2) Considerations.--In making a determination of the
interaction between the proposed regulation or order and other
Federal regulations, the Bureau shall evaluate the following:
``(A) Whether the proposed regulation or order is
in conflict with other Federal regulations or orders.
``(B) Whether the proposed regulation or order is
inconsistent with other Federal regulations or orders.
``(C) Whether the proposed regulation or order is
duplicative of other Federal regulations or orders.
``(D) Whether other Federal regulations or orders
are outdated.
``(3) Resolving duplicative or inconsistent regulations or
orders.--The Bureau shall take all available measures under
current law to resolve any duplicative or inconsistent existing
regulation or order with any proposed regulation or order
before issuing a final regulation or order.
``(4) Report to congress.--Not later than the end of the
60-day period beginning on the date the Bureau makes a
determination under paragraph (2), the Bureau shall issue a
report to the Congress containing recommendations made by the
Bureau, including any recommendations of Federal laws or
regulations that should be repealed or amended, so that the
Congress may repeal or amend any conflicting, inconsistent,
duplicative, or outdated laws or regulations.
``(5) Limitation on judicial review.--Notwithstanding any
other provision of law, a court may not compel action or hold
unlawful and set aside any action solely on the basis of
compliance or noncompliance with the requirements of this
subsection.
``(6) Definitions.--For purposes of this subsection, the
terms `regulation' and `order' shall have the meaning given
those terms, respectively, by the Bureau, and the term `other
Federal regulations and orders' shall mean regulations and
orders of the Federal financial regulators (as defined under
section 9(c)(6) of the Federal Deposit Insurance Act), other
than the Bureau.''.
(e) National Credit Union Administration.--Section 102 of the
Federal Credit Union Act (12 U.S.C. 1752a) is amended by adding at the
end the following:
``(g) Review of Regulations.--
``(1) In general.--Before issuing a regulation or order the
Administration shall assess other Federal regulations and
orders to determine the interaction between the proposed
regulation or order and other Federal regulations and orders.
``(2) Considerations.--In making a determination of the
interaction between the proposed regulation or order and other
Federal regulations, the Administration shall evaluate the
following:
``(A) Whether the proposed regulation or order is
in conflict with other Federal regulations or orders.
``(B) Whether the proposed regulation or order is
inconsistent with other Federal regulations or orders.
``(C) Whether the proposed regulation or order is
duplicative of other Federal regulations or orders.
``(D) Whether other Federal regulations or orders
are outdated.
``(3) Resolving duplicative or inconsistent regulations or
orders.--The Administration shall take all available measures
under current law to resolve any duplicative or inconsistent
existing regulation or order with any proposed regulation or
order before issuing a final regulation or order.
``(4) Report to congress.--Not later than the end of the
60-day period beginning on the date the Administration makes a
determination under paragraph (2), the Administration shall
issue a report to the Congress containing recommendations made
by the Administration, including any recommendations of Federal
laws or regulations that should be repealed or amended, so that
the Congress may repeal or amend any conflicting, inconsistent,
duplicative, or outdated laws or regulations.
``(5) Limitation on judicial review.--Notwithstanding any
other provision of law, a court may not compel action or hold
unlawful and set aside any action solely on the basis of
compliance or noncompliance with the requirements of this
subsection.
``(6) Definitions.--For purposes of this subsection, the
terms `regulation' and `order' shall have the meaning given
those terms, respectively, by the Administration, and the term
`other Federal regulations and orders' shall mean regulations
and orders of the Federal financial regulators (as defined
under section 9(c)(6) of the Federal Deposit Insurance Act),
other than the Administration.''.
(f) Securities and Exchange Commission.--Section 4 of the
Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended by adding at
the end the following:
``(j) Review of Regulations.--
``(1) In general.--Before issuing a regulation or order the
Commission shall assess other Federal regulations and orders to
determine the interaction between the proposed regulation or
order and other Federal regulations and orders.
``(2) Considerations.--In making a determination of the
interaction between the proposed regulation or order and other
Federal regulations, the Commission shall evaluate the
following:
``(A) Whether the proposed regulation or order is
in conflict with other Federal regulations or orders.
``(B) Whether the proposed regulation or order is
inconsistent with other Federal regulations or orders.
``(C) Whether the proposed regulation or order is
duplicative of other Federal regulations or orders.
``(D) Whether other Federal regulations or orders
are outdated.
``(3) Resolving duplicative or inconsistent regulations or
orders.--The Commission shall take all available measures under
current law to resolve any duplicative or inconsistent existing
regulation or order with any proposed regulation or order
before issuing a final regulation or order.
``(4) Report to congress.--Not later than the end of the
60-day period beginning on the date the Commission makes a
determination under paragraph (2), the Commission shall issue a
report to the Congress containing recommendations made by the
Commission, including any recommendations of Federal laws or
regulations that should be repealed or amended, so that the
Congress may repeal or amend any conflicting, inconsistent,
duplicative, or outdated laws or regulations.
``(5) Limitation on judicial review.--Notwithstanding any
other provision of law, a court may not compel action or hold
unlawful and set aside any action solely on the basis of
compliance or noncompliance with the requirements of this
subsection.
``(6) Definitions.--For purposes of this subsection, the
terms `regulation' and `order' shall have the meaning given
those terms, respectively, by the Commission, and the term
`other Federal regulations and orders' shall mean regulations
and orders of the Federal financial regulators (as defined
under section 9(c)(6) of the Federal Deposit Insurance Act),
other than the Commission.''.
(g) Commodity Futures Trading Commission.--Section 2(a) of the
Commodity Exchange Act (7 U.S.C. 2(a)) is amended by adding at the end
the following:
``(A) In general.--Before issuing a regulation or
order the Commission shall assess other Federal
regulations and orders to determine the interaction
between the proposed regulation or order and other
Federal regulations and orders.
``(B) Considerations.--In making a determination of
the interaction between the proposed regulation or
order and other Federal regulations, the Commission
shall evaluate the following:
``(i) Whether the proposed regulation or
order is in conflict with other Federal
regulations or orders.
``(ii) Whether the proposed regulation or
order is inconsistent with other Federal
regulations or orders.
``(iii) Whether the proposed regulation or
order is duplicative of other Federal
regulations or orders.
``(iv) Whether other Federal regulations or
orders are outdated.
``(C) Resolving duplicative or inconsistent
regulations or orders.--The Commission shall take all
available measures under current law to resolve any
duplicative or inconsistent existing regulation or
order with any proposed regulation or order before
issuing a final regulation or order.
``(D) Report to congress.--Not later than the end
of the 60-day period beginning on the date the
Commission makes a determination under subparagraph
(B), the Commission shall issue a report to the
Congress containing recommendations made by the
Commission, including any recommendations of Federal
laws or regulations that should be repealed or amended,
so that the Congress may repeal or amend any
conflicting, inconsistent, duplicative, or outdated
laws or regulations.
``(E) Limitation on judicial review.--
Notwithstanding any other provision of law, a court may
not compel action or hold unlawful and set aside any
action solely on the basis of compliance or
noncompliance with the requirements of this paragraph.
``(F) Definitions.--For purposes of this paragraph,
the terms `regulation' and `order' shall have the
meaning given those terms, respectively, by the
Commission, and the term `other Federal regulations and
orders' shall mean regulations and orders of the
Federal financial regulators (as defined under section
9(c)(6) of the Federal Deposit Insurance Act), other
than the Commission.''.
(h) Treatment of Joint Rulemakings.--In the case of a joint
rulemaking with respect to which an assessment and determination is
required pursuant to an amendment made under this section, the agencies
shall jointly make such assessment and determination and shall submit a
single report with respect to such determination.
SEC. 5. LONGER EXAMINATION CYCLE FOR HIGHLY RATED COMMUNITY BANKS.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)) is amended--
(1) in paragraph (4)--
(A) in subparagraph (A), by striking
``$500,000,000'' and inserting ``$1,000,000,000''; and
(B) in subparagraph (C)(ii), by striking
``$100,000,000'' and inserting ``$200,000,000''; and
(2) in paragraph (10)--
(A) by striking ``$100,000,000'' and inserting
``$200,000,000''; and
(B) by striking ``$500,000,000'' and inserting
``$1,000,000,000''.
SEC. 6. STREAMLINING CURRENCY TRANSACTION REPORTING.
(a) Qualified Customer Exemption.--Section 5313(e) of title 31,
United States Code, is amended to read as follows:
``(e) Discretionary Exemption for Qualified Customers.--
``(1) In general.--Before the end of the 270-day period
beginning on the date of the enactment of this subsection, the
Secretary of the Treasury shall issue final rules that exempt
any depository institution from filing a report pursuant to
this section with respect to a transaction for the payment,
receipt, or transfer of monetary instruments between the
depository institution and a qualified customer of the
depository institution.
``(2) Qualified customer defined.--For purposes of this
section, the term `qualified customer', with respect to a
depository institution, has such meaning as the Secretary of
the Treasury shall prescribe, which shall include any person
that--
``(A) has maintained a deposit account with the
depository institution for at least 2 months, except
the Secretary may prescribe a shorter period by rule;
and
``(B) has engaged, using such account, in any
currency transactions that would otherwise be subject
to the reporting requirements of subsection (a).
``(3) Rulemaking.--
``(A) In general.--The Secretary of the Treasury
shall issue rules requiring a depository institution to
file a one-time notice of the designation for exemption
of each qualified customer of the depository
institution.
``(B) Form and content of designation notice.--The
Secretary shall by rule prescribe the form, manner,
content, and timing of the qualified customer
designation notice. Such notice shall include
sufficient information to identify the qualified
customer and the accounts of the customer.
``(C) Authority of secretary.--
``(i) In general.--The Secretary may
suspend, reject, or revoke any qualified
customer designation notice, in accordance with
criteria prescribed by the Secretary by rule.
``(ii) Conditions.--The Secretary may
establish conditions, in accordance with
criteria prescribed by rule, under which a
designation of exemption received under this
section shall continue to be valid, with
respect to the qualified customer for whom a
depository institution secured such
designation, if such depository institution
merges with or is acquired by another
depository institution.''.
(b) Filing Threshold.--Not later than the end of the 60-day period
beginning on the date of the enactment of this Act, the Secretary shall
issue final regulations to raise the threshold amount under subsection
(a) to at least $20,000.
SEC. 7. FINANCIAL CRIMES ENFORCEMENT NETWORK DATA ACCOUNTABILITY
METRICS.
(a) In General.--Section 310 of title 31, United States Code, is
amended--
(1) in subsection (b)(2)--
(A) by redesignating subparagraph (J) as
subparagraph (K); and
(B) by inserting after subparagraph (I) the
following new subparagraph:
``(J) Report annually to the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate on how the data access service described in
subparagraph (B) and the information collected by the
service is used to detect and prevent money laundering,
terrorist financing, and other financial crimes,
including--
``(i) information on the number of
investigations and prosecutions originated
because of, and supported by, access to the
information collected by the service; and
``(ii) an identification and analysis of
information collected by the service which is
not used that the Director believes should be
eliminated to reduce reporting requirements and
increase effectiveness and efficiency.''; and
(2) in subsection (c)--
(A) in paragraph (1)(C), by striking ``; and'' and
inserting a semicolon;
(B) by redesignating paragraph (2) as paragraph
(3); and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) for appropriate metrics to monitor, track, assess,
and report on access to information contained in the data
access service maintained by FinCEN, including:
``(A) identifying, tracking, and measuring how such
information is used and the law enforcement results
obtained as a consequence of that use; and
``(B) assuring accountability by law enforcement
agencies for the usefulness, security, and privacy of
such information while reducing unnecessary regulatory
burdens on reporters of information collected under
subsection (b)(2)(B); and''.
SEC. 8. EQUITABLE TREATMENT OF S CORPORATION BANKS.
Section 171 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5371) is amended--
(1) in subsection (a), by adding at the end the following
new paragraphs:
``(8) S corporation bank.--The term `S corporation bank'
means any insured depository institution operating as an S
corporation (as defined in section 1361(a) of the Internal
Revenue Code (26 U.S.C. 1361(a))).
``(9) Capital conservation buffer.--The term `capital
conservation buffer' means the requirements relating to capital
conservation and countercyclical capital buffers provided under
sections 3.11, 217.11, and 324.11 of title 12, Code of Federal
Regulations.'';
(2) in subsection (b)(5)--
(A) in subparagraph (B), by striking ``; or'' and
inserting a semicolon;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following new
subparagraph:
``(D) any S corporation bank as described in
paragraph (8).''; and
(3) by adding at the end of subsection (b) the following
new paragraph:
``(8) Capital requirements for s corporations.--
``(A) In general.--Not later than 180 days after
the date of enactment of this Act, the appropriate
Federal banking agencies shall, with regard to the
treatment of dividend distributions required under the
capital conservation buffer for a S corporation bank,
issue final regulations authorizing such banks to make
such distributions for payment of taxes arising from
the activities of such bank.
``(B) Requirements.--The regulations issued under
subparagraph (A) shall take into consideration the fact
that the income of an S corporation bank is calculated
prior to consideration of distributions for payment of
taxes arising from S corporation bank activities.''.
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