[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2722 Introduced in Senate (IS)]
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114th CONGRESS
2d Session
S. 2722
To amend the Home Owners' Loan Act to allow Federal savings
associations to elect to operate as national banks, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 17, 2016
Ms. Heitkamp (for herself and Mr. Moran) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Home Owners' Loan Act to allow Federal savings
associations to elect to operate as national banks, 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 ``Federal Savings Association Charter
Flexibility Act of 2016''.
SEC. 2. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO OPERATE AS A COVERED
SAVINGS ASSOCIATION.
The Home Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended by
inserting after section 5 the following:
``SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS ASSOCIATION.
``(a) Definition.--In this section, the term `covered savings
association' means a Federal savings association that makes an election
approved under subsection (b).
``(b) Election.--
``(1) In general.--Upon issuance of the rules described in
subsection (f), a Federal savings association may elect to
operate as a covered savings association by submitting a notice
to the Comptroller of such election.
``(2) Approval.--A Federal savings association shall be
deemed to be approved to operate as a covered savings
association on the date that is 60 days after the date on which
the Comptroller receives the notice under paragraph (1), unless
the Comptroller notifies the Federal savings association
otherwise.
``(c) Rights and Duties.--Notwithstanding any other provision of
law and except as otherwise provided in this section, a covered savings
association shall--
``(1) have the same rights and privileges as a national
bank that has its main office situated in the same location as
the home office of the covered savings association; and
``(2) be subject to the same duties, restrictions,
penalties, liabilities, conditions, and limitations that would
apply to such a national bank.
``(d) Treatment of Covered Savings Associations.--A covered savings
association shall be treated as a Federal savings association for the
purposes--
``(1) of governance of the covered savings association,
including incorporation, bylaws, boards of directors,
shareholders, and distribution of dividends;
``(2) of consolidation, merger, dissolution, conversion
(including conversion to a stock bank or to another charter),
conservatorship, and receivership; and
``(3) determined by regulation of the Comptroller.
``(e) Existing Branches.--A covered savings association may
continue to operate any branch or agency the covered savings
association operated on the date on which an election under subsection
(b) is approved.
``(f) Rulemaking.--The Comptroller shall issue rules to carry out
this section--
``(1) that establish streamlined standards and procedures
that clearly identify required documentation or timelines for
an election under subsection (b);
``(2) that require a Federal savings association that makes
an election under subsection (b) to identify specific assets
and subsidiaries--
``(A) that do not conform to the requirements for
assets and subsidiaries of a national bank; and
``(B) that are held by the Federal savings
association on the date on which the Federal savings
association submits a notice of such election;
``(3) that establish--
``(A) a transition process for bringing such assets
and subsidiaries into conformance with the requirements
for a national bank; and
``(B) procedures for allowing the Federal savings
association to provide a justification for
grandfathering such assets and subsidiaries after
electing to operate as a covered savings association;
``(4) that establish standards and procedures to allow a
covered savings association to terminate an election under
subsection (b) after an appropriate period of time or to make a
subsequent election;
``(5) that clarify requirements for the treatment of
covered savings associations, including the provisions of law
that apply to covered savings associations; and
``(6) as the Comptroller deems necessary and in the
interests of safety and soundness.''.
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