Text: H.R.5433 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 5433 IH
102d CONGRESS
2d Session
 H. R. 5433
To increase the amount of credit available to fuel economic growth by reducing
the regulatory burden imposed upon community banks, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 18, 1992
Mr. BEREUTER (for himself and Mr. WYLIE) introduced the following bill;
which was referred to the Committee on Banking, Finance and Urban Affairs
A BILL
To increase the amount of credit available to fuel economic growth by reducing
the regulatory burden imposed upon community 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 shall be cited as the `Comprehensive Community Bank Burden
  Reduction Act of 1992'.
TITLE I--PURPOSES
SEC. 101. PURPOSES.
  The purposes of this Act are as follows:
  (1) To reduce regulatory compliance burdens on banks, especially small,
  community-oriented financial institutions, which come in the form of
  costly software purchases and hiring additional staff solely for regulatory
  compliance duties.
  (2) To decrease statutory prescription of regulations of financial
  institutions.
  (3) To increase the bank regulator's supervisory discretion, and, thus,
  increase some flexibility in its examinations of financial institutions.
  (4) To encourage bank regulators to return to a practice of reviewing its
  regulations and discarding stale ones.
  (5) To ensure that bank attention is focused on complying with regulations
  that are designed to ensure safe and sound operation of the institutions.
  (6) To reduce regulatory burdens for banks, the cost of which is eventually
  borne by the public--either by higher cost of services or in terms of
  less service.
  (7) To ensure that bank regulatory agency resources are targeted at those
  financial institutions operating in areas where banking services are a
  problem or in dispute.
  (8) To reduce the cost of regulation of the banking industry to the
  Federal Government.
TITLE II--SUPERVISORY REFORMS
SEC. 201. ANNUAL EXAMINATIONS.
  (a) SMALL BANK TREATMENT- Section 10(d)(4) of the Federal Deposit Insurance
  Act (12 U.S.C. 1820(d)(4) (as amended by section 111 of the Federal Deposit
  Insurance Corporation Improvement Act of 1991) is amended to read as follows:
  `(4) 2-year rule for certain small institutions-
  `(A) Paragraphs (1), (2), and (3) shall apply, and the applicable period
  shall be twenty four months, if--
  `(i) the insured depository institution has total assets of less than
  $250,000,000;
  `(ii) the insured depository institution is well capitalized (as defined
  in section 38);
  `(iii) as determined by the appropriate Federal banking agency, when the
  insured depository institution was most recently examined, it was found--
  `(I) to be well managed;
  `(II) to have had solid earnings;
  `(III) to have been profitable for the previous two years; and
  `(IV) that its composite condition was outstanding;
  `(iv) the insured depository institution is not currently subject to a
  formal enforcement order by the appropriate Federal banking agency; and
  `(v) no person acquired control of the insured depository institution
  during the twelve-month period in which a full-scope, on-site examination
  would have been required but for the provisions of this subparagraph.
  `(B) For purposes of subparagraph (A)(i), the dollar amount shall be adjusted
  annually after December 31, 1992, by the annual percentage increase in the
  Consumer Price Index for Urban Wage Earners and Clerical Workers published
  by the Bureau of Labor Statistics.'.
  (b) STATE EXAMINATIONS- Section 10(d)(3) of the Federal Deposit Insurance
  Act (12 U.S.C. 1820(d)(3) (as amended by section 111 of the Federal Deposit
  Insurance Corporation Improvement Act of 1991) is amended to read as follows:
  `(3) STATE EXAMINATIONS ACCEPTABLE- The examination requirement established
  under paragraph (1) may be satisfied by an examination of the insured
  depository institution conducted by the State during the twelve-month
  period if the appropriate Federal banking agency determines that the State
  examination carries out the purposes of this subsection.'.
  (c) COMMUNITY BANKS WITHIN A MULTI-BANK HOLDING COMPANY- Section 10(d)
  of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) (as amended by
  section 111 of the Federal Deposit Insurance Corporation Improvement Act of
  1991) is amended by adding after paragraph (6) the following new paragraph:
  `(7) SMALL BANKS WITHIN MULTIBANK HOLDING COMPANIES- The appropriate
  Federal banking agency may exempt any insured depository institution within
  a depository institution holding company from the requirements of this
  subsection where the agency is satisfied that adequate internal controls
  and examination procedures exist within the holding company structure.'.
SEC. 202. AUDIT COSTS.
  (a) AUDITOR ATTESTATIONS- Section 36 of the Federal Deposit Insurance Act
  (12 U.S.C. 1831m) (as added by section 112 of the Federal Deposit Insurance
  Corporation Improvement Act of 1991) is amended--
  (1) in subsection (a)(2)(A)(ii), by striking `subsections (c) and (d)'
  and inserting instead `subsection (c)';
  (2) By striking subsection (c);
  (3) in subsection (d), by striking `(d)' and inserting instead `(c)'; and
  (4) by striking subsection (e).
  (b) DUPLICATIVE REPORTING- Section 36 (i) of the Federal Deposit Insurance
  Act (12 U.S.C. 1831m(i)) (as added by section 112 of the Federal Deposit
  Insurance Corporation Improvement Act of 1991) is amended--
  (1) by striking `(d)' and inserting instead `(c)'; and
  (2) by striking `if--(1) services and functions' and all that follows
  through `or the appropriate Federal banking agency'  and inserting instead
  `if services and functions comparable to those required under this section
  are provided at the holding company level'.
  (c) INDEPENDENT AUDIT COMMITTEES- Section 36(g)(1) of the Federal Deposit
  Insurance Act (12 U.S.C. 1831m(g)(1)) (as added by section 112 of the
  Federal Deposit Insurance Corporation Improvement Act of 1991) is amended--
  (1) in subparagraph (A), by striking `entirely' and inserting instead
  `the majority of which is';
  (2) in subparagraph (C)--
  (A) by inserting `and' after the semicolon at the end of clause (i);
  (B) by striking `; and' at the end of clause (ii) and inserting instead
  a period; and
  (C) by striking clause (iii); and
  (3) by adding at the end thereof the following new subparagraph:
  `(D) EXEMPTIVE AUTHORITY- Each appropriate Federal banking agency shall,
  by regulation, exempt from the requirements of this subsection all insured
  depository institutions which, as determined by the appropriate Federal
  banking agency, face hardships in retaining competent directors on their
  internal audit committees as a result of this subsection. In determining
  what types of institutions will be exempted, the agency shall consider such
  factors as the size of the institution and the availability of competent
  outside directors in the community.'.
  (d) QUARTERLY REPORTS- Section 36(g)(2) of the Federal Deposit Insurance Act
  (12 U.S.C. 1831m(g)(2)) (as added by section 112 of the Federal Deposit
  Insurance Corporation Improvement Act of 1991) is amended by adding at
  the end thereof the following new subparagraph:
  `(D) Upon determining that an institution's quarterly reports shall be
  subject to the requirements of subparagraph (A), the Corporation shall
  promptly provide the institution with written notice of such determination.'.
  (e) CLERICAL AMENDMENTS- Section 36 of the Federal Deposit Insurance Act
  (12 U.S.C. 1831m) (as added by section 112 of the Federal Deposit Insurance
  Corporation Improvement Act of 1991) is amended--
  (1) by redesignating subsection (d) as subsection (c); and
  (2) by redesignating subsections (f) through (j) as subsections (d) through
  (h), respectively.
  (f) EFFECTIVE DATE- Section 112(b) of the Federal Deposit Insurance
  Corporation Improvement Act of 1991 is amended by striking `December 31,
  1992' and inserting instead `December 31, 1993.'
SEC. 203. APPLICATION INFORMATION.
  Section 5(a) of the Federal Deposit Insurance Act (12 U.S.C. 1815(a))
  is amended by adding at the end the following new paragraph:
  `(7) INFORMATION PROVIDED TO OTHER FEDERAL BANKING AGENCIES- Information
  provided by a depository institution to an appropriate Federal banking
  agency other than the Corporation, which also is required to be included
  in any application required to be submitted to the Corporation under this
  section or any other provision of law, may be so included by appending to
  the application a copy of the information provided to such other appropriate
  Federal banking agency.'.
SEC. 204. REPORTING BURDENS.
  (a) Section 122 of the Federal Deposit Insurance Corporation Improvement
  Act of 1991 is repealed.
  (b) Section 477 of the Federal Deposit Insurance Corporation Improvement
  Act of 1991 is repealed.
SEC. 205. CALL REPORT BURDENS.
  (a) IN GENERAL- Within one hundred and twenty days after the date of
  enactment of this Act, each appropriate Federal banking agency shall review
  the regulatory burden and costs incurred by insured depository institutions
  in connection with their preparation of reports of condition.
  (b) FACTORS TO BE CONSIDERED- In conducting its review, each agency shall
  consider all relevant factors that it deems necessary to correctly determine
  the extent of the burden and costs, including--
  (1) the actual dollar cost to insured depository institutions in preparing
  such reports;
  (2) the time and resources expended to meet regulatory directives;
  (3) the frequency with which the agency has modified the types of information
  required to be reported in such reports and the costs and burdens associated
  with complying with such modifications;
  (4) the types of report of condition information required of other types of
  insured depository institutions by such institutions' appropriate Federal
  banking agencies; and
  (5) the extent to which such costs and burdens impact upon the availability
  of credit.
  (c) CORRECTIVE MEASURES- After conducting its review, each appropriate
  Federal banking agency shall, in consultation with the other appropriate
  Federal banking agencies, revise its report of condition requirements to
  eliminate any unnecessary burdens and costs. Before making any subsequent
  modification in report of condition requirements, each appropriate Federal
  banking agency shall consider the extent to which such modifications
  impose unnecessary regulatory burdens and costs upon insured depository
  institutions.
  (d) AMENDMENT RELATING TO NATIONAL BANKS- Section 5211(a) of the Revised
  Statutes (12 U.S.C. 161(a)) is amended by adding at the end the following
  sentence: `Any change in the form of report of condition made under this
  subsection shall be effective only on October 1 of a particular calendar
  year, and only after at least six months from the date that notice of the
  change is published in the Federal Register: Provided, however, That such
  a change may be effective on a different date or after less notice  if
  the Comptroller makes a specific finding that a different effective date
  or shorter advance notice is necessary because of an emergency or change
  in Federal law.'.
  (e) AMENDMENT RELATING TO STATE NON-MEMBER INSURED BANKS- Section 7(a)
  of the Federal Deposit Insurance Act (12 U.S.C. 1817(a) is amended by
  adding at the end the following new paragraph:
  `(10) Any change in the form of reports of condition made under this
  subsection shall be effective only on October 1 of a particular calendar
  year, and only after at least six months from the date that notice of the
  change is published in the Federal Register: Provided, however, That such
  a change may be effective on a different date or after less notice if the
  Board of Directors makes a specific finding that a different effective
  date or shorter advance notice is necessary because of an emergency or
  change in Federal law.'.
  (f) AMENDMENT RELATING TO STATE MEMBER BANKS- The sixth undesignated
  paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 324) is amended
  by adding at the end the following sentence: `Any change in the form of
  report of condition made under this subsection shall be effective only on
  October 1 of a particular calendar year, and only after at least six months
  from the date that notice of the change is published in the Federal Register:
  Provided, however, That such a change may be effective on a different date
  or after less notice if the Board of Governors of the Federal Reserve System
  makes a specific finding that a different effective date or shorter advance
  notice is necessary because of an emergency or change in Federal law.'.
  (g) AMENDMENT RELATING TO SAVINGS ASSOCIATION- Section 5(v) of the Home
  Owners' Loan Act (12 U.S.C. 1464(v)) is amended by adding at the end the
  following new paragraph:
  `(9) CHANGE IN FORM- Any change in the form of reports of condition made
  under this subsection shall be effective only on October 1 of a particular
  calendar year, and only after at least six months from the date that notice
  of the change is published in the Federal Register: Provided, however, That
  such a change may be effective on a different date or after less notice
  if the Director makes a specific finding that a different effective date
  or shorter advance notice is necessary because of an emergency or change
  in Federal law.'.
  (h) AMENDMENT RELATING TO CREDIT UNIONS- Section 202(a)(1) of the Federal
  Credit Union Act (12 U.S.C. 1782(a)(1)) is amended by adding at the end
  the following sentence: Any change in the form of reports of condition made
  under this subsection shall be effective only on October 1 of a particular
  calendar year, and only after at least six months from the date that notice
  of the change is published in the Federal Register: Provided, however,
  That such a change may be effective on a different date or after less
  notice if the Board makes a specific finding that a different effective
  date or shorter advance notice is necessary because of an emergency or
  change in Federal law.'.
  (i) DEFINITIONS- For purposes of this section, the terms `insured depository
  institution' and `appropriate Federal banking agency' shall have the same
  meanings as provided in section 3 of the Federal Deposit Insurance Act.
SEC. 206. REGULATORY STANDARDS.
  Section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831s), as added
  by section 132 of the Federal Deposit Insurance Corporation Improvement
  Act of 1991, is repealed.
SEC. 207. BRANCH CLOSURES.
  Section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831p), as added
  by section 228 of the Federal Deposit Insurance Corporation Improvement
  Act of 1991, is amended--
  (1) by redesignating such section as section 39A; and
  (2) by adding at the end the following new subsection:
  `(d) DEFINITIONS- For purposes of this section, the term `branch' shall
  not include:
  `(1) automated teller machines;
  `(2) a branch acquired through merger, consolidation, purchase, assumption
  or other method that is located in a local market area currently served
  by another branch of the acquiring institution;
  `(3) a branch that is closed and reopened in another location within the
  same local market area which would continue to provide banking services
  to substantially all of the customers currently served by the branch that
  is closed;
  `(4) a branch that is closed in connection with--
  `(A) an emergency acquisition under--
  `(i) section 11(n) of this Act (12 U.S.C. 1821(n); or
  `(ii) subsections (f) or (k) of section 13 of this Act (12 U.S.C. 1823); or
  `(B) any assistance provided by the Corporation under section 13(c) of
  this Act (12 U.S.C. 1823(c); and
  `(5) any other branch that is closed and for which exemption from the notice
  requirements of this section would not produce a result inconsistent with
  the purposes of this section, as determined by the appropriate Federal
  banking agency by regulation.'.
SEC. 208. REGULATORY REVIEW OF CAPITAL COMPLIANCE BURDEN.
  (a) Not later than one hundred and eighty days after the date of enactment
  of this Act, the Federal Financial Institutions Examination Council, in
  consultation with insured depository institutions and other interested
  parties, shall--
  (1) review the extent to which current risk-based capital rules and related
  compliance requirements have an unnecessarily costly and burdensome effect
  on community banks; and
  (2) where appropriate, recommend that the appropriate Federal banking
  agencies reduce such costs and burdens.
  (b) For purposes of this section--
  (1) the terms `insured depository institution' and `appropriate Federal
  banking agencies' have the same meaning as provided in section 3 of the
  Federal Deposit Insurance Act; and
  (2) the term `community banks' means insured depository institutions with
  total assets of $250,000,000 or less.
SEC. 209. AGGREGATE LIMITS ON INSIDER LENDING.
  (a) IN GENERAL- Section 22(h)(5) of the Federal Reserve Act (12
  U.S.C. 375b(5)) (as amended by section 306 of the Federal Deposit Insurance
  Corporation Improvement Act of 1991) is amended--
  (1) in subparagraph (A)--
  (A) by inserting `(i)' after `IN GENERAL- '; and
  (B) by adding at the end thereof the following new clause:
  `(ii) Extension of credit by a member bank that conform to the collateral
  or other requirements of section 5200(c) of the Revised Statutes, as to be
  qualified as exceptions to the limitations of section 5200(a), shall not
  be included in or aggregated with the amount of all outstanding extensions
  of credit calculated under this subsection.';
  (2) by redesignating subparagraph (C) as subparagraph (D); and
  (3) by adding after subparagraph (B) inserting the following new
  subparagraph:
  `(C) SMALL BANK EXCEPTION- Notwithstanding subparagraph (A)(i), member
  banks with less than $100,000,000 in deposits may make such extensions
  of credit in the aggregate to persons specified in subparagraph (A) in an
  amount not to exceed two times the bank's unimpaired capital and unimpaired
  surplus.'; and (4) in subparagraph (D) (as redesignated), by striking `less
  than $100,000,000' and inserting `between $100,000,000 and $250,000,000'.
  (b) EFFECTIVE DATE- The amendments made by subsection (a) shall become
  effective upon the earlier of--
  (1) the date upon which final regulations under subsection (m)(1) of
  section 306 of the Federal Deposit Insurance Corporation Improvement Act
  of 1991 become effective; or
  (2) May 18, 1992.
SEC. 210. REGULATION OF INTERBANK RISK.
  Section 23 of the Federal Reserve Act (12 U.S.C. 371b-2) (as added by
  section 308 of the Federal Deposit Insurance Corporation Improvement Act
  of 1991) as repealed.
SEC. 211. EXPEDITED APPROVAL PROCESS FOR STATE BANKS;
  Section 24 of the Federal Deposit Insurance Act (12 U.S.C. 1831a) (as added
  by section 303 of the Federal Deposit Insurance Corporation Improvement Act)
  is amended--
  (1) by amending subsection (a)(1) to read as follows:
  `(1) the State bank has filed with the Corporation a notice describing
  the activity and the corporation has not, before the expiration of the
  forty-five-day period beginning on the date on which the notice is filed,
  determined that the activity would pose a significant risk to the appropriate
  deposit insurance fund; and'; and
  (2) by amending subsection (d)(1)(A) to read as follows:
  `(A) the bank has filed with the Corporation a notice describing the activity
  and the Corporation has not, before the expiration of the forty-five-day
  period beginning on the date on which the notice is filed, determined
  that the activity would pose a significant risk to the appropriate deposit
  insurance fund; and'.
SEC. 212. UNIFORM REGULATIONS.
  (a) IN GENERAL- The Federal Deposit Insurance Act (12 U.S.C.  1811 et
  seq.) is amended by adding at the end the following new section:
`SEC. 44. UNIFORM REGULATIONS.
  `Not later than two years after the date of enactment of this section, the
  appropriate Federal Banking agencies shall undertake a coordinated review
  of regulations promulgated by such agencies, and each appropriate Federal
  banking agency shall ensure that its regulations on any matter, together
  with its formal or informal interpretations of such regulations, are uniform
  with the regulations and interpretations of each other appropriate Federal
  banking agency regarding such matter, except as otherwise provided by law.'.
  (b) CONFORMING AMENDMENT- Section 18(o) of the Federal Deposit Insurance Act
  (12 U.S.C. 1828) (as added by section 304 of the Federal Deposit Insurance
  Corporation Improvement Act of 1991) is repealed.
SEC. 213. REAL ESTATE APPRAISAL AMENDMENT.
  (a) Section 1112 of the Financial Institutions Reform, Recovery, and
  Enforcement Act of 1989 (12 U.S.C. 3341) is amended--
  (1) by inserting `(a) IN GENERAL- ' before `Each Federal'; and
  (2) by adding at the end the following new subsection:
  `(b) THRESHOLD LEVEL- Notwithstanding sections 1113 and 1114, each
  Federal financial institution regulatory agency and the Resolution Trust
  Corporation may establish levels below which the agency shall not require
  that a certified or licensed appraiser perform appraisals in connection
  with federally related transactions, if such agency determines that such
  level is in the public interest.'.
  (b) Section 1119(a) of the Financial Institutions Reform, Recovery, and
  Enforcement Act of 1989 (12 U.S.C. 3348(a)) is amended by adding after
  paragraph (2) the following new paragraph:
  `(3) PROHIBITION ON STATE REQUIREMENTS- No state may require that
  appraisals in connection with federally related transactions be conducted
  by State-certified or State licensed appraisers.'.
SEC. 214. COMMUNITY REINVESTMENT ACT AMENDMENTS.
  (a) SELF-CERTIFICATION- The Community Reinvestment Act of 1977 (12
  U.S.C. 2901 et seq.) is amended by adding after section 808 the following
  new sections:
`SEC. 809. SELF-CERTIFICATION.
  `(a) Scope-
  `(1) This section shall only apply during a calendar year to a regulated
  financial institution that--
  `(A) has not been found to be in violation of section 701(a) of the Equal
  Credit Opportunity Act, or any other substantive provision of such Act,
  for the five-year period preceding such calendar year;
  `(B) does not currently have a rating of `needs to improve' or `substantial
  noncompliance' from the appropriate Federal financial supervisory agency
  under section 807(b); and
  `(C) had total assets, as of the preceding December 31, less than
  100,000,000.
  `(2) For purposes of paragraph (1), the dollar amounts therein shall
  be adjusted annually after December 31, 1992, by the annual percentage
  increase in the Consumer Price Index for Urban Wage Earners and Clerical
  Workers published by the Bureau of Labor Statistics.
  `(b) MODIFIED REPORTING- In lieu of being evaluated under section 804 and
  receiving a written evaluation under section 807 during the calendar year
  referred to in subsection (a), a regulated financial institution described
  in subsection (a) shall--
  `(1) declare in writing to the appropriate Federal financial supervisory
  agency that it is a regulated financial institution described in subsection
  (a), and that it is in compliance with the requirements of this subsection;
  `(2) display any notices that may be required by the appropriate Federal
  financial supervisory agency concerning its compliance with the requirements
  of this Act; and
  `(3) make available for public inspection the following information
  regarding the record of such institution in meeting the credit needs of
  its entire community--
  `(A) an identification of the community it serves;
  `(B) a list of the types of credit offered by the institution;
  `(C) any public comments received within the previous two years regarding
  the institution's service of the entire community's credit needs; and
  `(D) copies of any declaration submitted under paragraph (1).
  `(c) PENALTIES- If the appropriate Federal financial supervisory agency
  finds that a regulated financial institution has submitted intentionally
  false information to the appropriate Federal financial supervisory agency
  or otherwise has willfully violated the requirements of subsection (b),
  such institution--
  `(1) shall, notwithstanding this section, be subject to the requirements
  of section 804 for a period of not more than ten years; and
  `(2) shall not be subject to a fine of not more than $10,000.
  `(d) COMMUNITY CHALLENGE- The appropriate Federal financial supervisory
  agency shall investigate any allegation filed against a regulated financial
  institution subject to this section that relates to whether such institution
  is helping to meet the credit needs of its entire community, consistent
  with the safe and sound operation of such institution.
`SEC. 810. SAFE HARBOR.
  Notwithstanding section 804(2), an application for a deposit facility by
  a regulated financial institution shall not be denied on the basis of such
  institution's compliance with this Act if such institution--
  `(1) received a rating in its last evaluation under section 804 of
  `Outstanding' or `Satisfactory' in its record of meeting community credit
  needs, as provided in section 807(b); or
  `(2) maintains continued compliance with section 809.
`SEC. 811. STATE EXAMINATIONS.
  The appropriate Federal financial supervisory agency may accept examinations
  conducted by State supervisory agencies pursuant to comparable State
  community reinvestment laws in order to satisfy the requirements of
  this Act.'
  (b) DUPLICATIVE INFORMATION COLLECTION- Section 804 of the Community
  Reinvestment Act of 1977 (12 U.S.C. 2903) is amended--
  (1) by striking `and' at the end of paragraph (1);
  (2) by striking the period at the end of paragraph (2) and inserting instead
  `; and'; and
  (3) by adding after paragraph (2) following new paragraph:
  `(3) not require a regulated financial institution to collect, prepare, file
  or maintain data or information for purposes of assessing the institution's
  record of helping to meet the credit needs of its entire community, if
  such data or information is also required to be submitted under the Home
  Mortgage Disclosure Act of 1975.'.
  (c) PUBLIC DISCLOSURE- Section 807(b)(1)(B) of the Community Reinvestment
  Act of 1977 (12 U.S.C. 2906(b)(1)(B)) is amended by striking `and data'.
SEC. 215. CREDIT CARD AND OTHER BANK AMENDMENTS.
  The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended
  by adding at the end the following new section:
`SEC. 812 EXEMPTIONS.
  `(a) WHOLESALE INSTITUTIONS- A regulated financial institution shall not
  be subject to the requirements of this chapter or any regulations issued
  thereunder, if such institution does not regularly extend credit which is
  primarily for personal, family, or household purposes.
  `(b) CREDIT CARD BANKS- A regulated financial institution shall not be
  subject to the requirements of this chapter or any regulations issued
  thereunder, if such institution satisfies the requirements for the credit
  card bank exemption of subsection 2(c)(2)(F) of the Bank Holding Company
  Act of 1956 (12 U.S.C. 1841(c)(2)(F)) or satisfies the requirements for
  the exemption under subsection 4(f) of the Bank Holding Company Act of 1956
  (12 U.S.C. 1843(f)).'.
SEC. 216. STANDARD FOR ATTACHMENT OF ASSETS AND OTHER INJUNCTIVE RELIEF.
  (a) Section 11(d)(19) of the Federal Deposit Insurance Act (12
  U.S.C. 1821(d)(19)) is amended--
  (1) in subparagraph (A), by striking `without regard' and all that follows
  through `immediate'; and
  (2) in subparagraph (B), by striking `(as modified with respect to such
  proceeding by subparagraph (A))'.
  (b) Section 8(b)(6) of the Federal Deposit Insurance Act (12
  U.S.C. 1818(b)(6)) is amended--
  (1) by striking `and' at the end of subparagraph (D);
  (2) by striking `and' at the end of subparagraph (E);
  (3) by redesignating subparagraph (F) as subparagraph (G);, and
  (4) by adding after subparagraph (E) the following new subparagraph:
  `(F) prohibit such depository institution or such party from withdrawing,
  transferring, removing, dissipating, or disposing of any funds, assets
  or other property where injury, loss, or damage from such action would by
  irreparable and immediate; and'.
  (c) Section 8(i)(4)(B) of the Federal Deposit Insurance Act (12
  U.S.C. 1818(i)(4)(B)) is amended to read as follows:
  `(B) STANDARD- Rule 65 of the Federal Rules of Civil Procedure shall apply
  with respect to any proceeding under this paragraph.'.
SEC. 217. PAPERWORK REDUCTION REVIEW.
  (a) Not later than one hundred eighty days after the date of enactment of
  this Act, each appropriate Federal banking agency, in consultation with
  insured depository institutions and other interested parties, shall--
  (1) review the extent to which current regulations require insured depository
  institutions to produce unnecessary internal written policies; and
  (2) eliminate such requirements, where appropriate.
  (b) For purposes of this section, the terms `insured depository institution'
  and `appropriate Federal banking agency' have the same meanings as provided
  in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
SEC. 218. CLARIFYING AMENDMENTS.
  (a) DATA COLLECTIONS- Section 7(a)(8) of the Federal Deposit Insurance Act
  (12 U.S.C. 1817(a)(8) (as amended by section 141(c) of the Federal Deposit
  Insurance Corporation Improvement Act of 1991) is amended by adding at the
  end thereof the following: `In prescribing reporting and other requirements
  pursuant to this paragraph, the Corporation shall minimize the regulatory
  burden imposed upon insured depository institutions.'.
  (b) LIMITATION TO FOREIGN INSTITUTIONS- Section 7(j)(9)(B)(i) of the
  Federal Deposit Insurance Act (12 U.S.C. 1817(j)(9)(B)(i)) (as amended
  by section 205 of the Federal Deposit Insurance Corporation Improvement
  Act of 1991) is amended by inserting `that is subject to the provisions
  of the Bank Holding Company Act of 1956 by virtue of section 8(a) of the
  International Banking Act of 1978' after `insured depository institution'.
SEC. 219. ASSESSMENT BASE FOR DEPOSIT INSURANCE PREMIUMS.
  (a) Section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)(3))
  is amended in the third sentence by deleting the phrases `, and the reports
  on such dates shall be the basis for the certified statement to be filed
  in July pursuant to subsection (c) of this section' and `, and the reports
  on such dates shall be the basis for the certified statement to be filed
  in January pursuant to subsection (c) of this section'.
  (b) Section 7(b)(3) of the Federal Deposit Insurance Act (12
  U.S.C. 1817(b)(3)) is amended by adding at the end the following phrase: `:
  Provided, however, That if the Corporation determines that the implementation
  of filing of certified statements under subsection (c) would be facilitated,
  the Corporation is authorized to adopt procedures under which the average
  assessment base is calculated using the assessment base on the last date in
  the immediately preceding assessment period in which the institution was
  required to make a report of condition in lieu of the assessment base on
  the last date in the current assessment period for which the institution
  was required to make a report of condition.'.
SEC. 220. ECONOMIC ANALYSIS OF CERTAIN BANKING REGULATIONS.
  (a) STATEMENT REQUIRED- An appropriate Federal banking agency that certifies,
  pursuant to section 605(b) of title 5, United States Code, that a proposed
  or final rule will not have a significant economic impact on a substantial
  number (more than 20 percent) of all small banks or savings associations,
  shall publish with such certification a detailed statement that contains--
  (1) an explanation of why the rule will not have such an economic impact;
  (2) an estimate of the number of small banks or savings associations
  affected by the rule;
  (3) an estimate of the costs and benefits to each small bank or savings
  association of compliance with the rule; and
  (4) in the case of a proposed rule, a request for public comments on the
  economic impact of and the number of small banks or savings association
  affected by the rule.
  (b) FINAL RULES- The preamble of each final rule promulgated by an
  appropriate Federal banking agency and preceded by a proposed rule shall--
  (1) specifically respond to comments from the public addressing the economic
  impact of, or the number of small banks or savings associations affected
  by, the proposed rule; and
  (2) explain whether and how the final rule responds to those comments.
  (c) DEFINITIONS- For purposes of this section--
  (1) the terms `appropriate Federal banking agency' has the same meaning
  as in section 3 of the Federal Deposit Insurance Act; and
  (2) the term `small bank or savings association' means a bank or savings
  association (as appropriate) that has total assets of not more than
  $100,000,000.
  (d) JUDICIAL REVIEW- The provisions of section 611 of title 5, United States
  Code, shall apply with respect to any statement required by this section.
SEC. 221. OFFICE OF REGULATORY QUALITY.
  The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by
  adding at the end the following new section:
`SEC. 1833f. OFFICE OF REGULATORY QUALITY.
  (a) Each appropriate Federal banking agency shall establish, within 180
  days of the enactment of this  section, a separate Office of Regulatory
  Quality to determine and monitor the accuracy, consistency and quality of
  the examination, regulation and enforcement activities of such agency.
  `(b) The director of the Office of Regulatory Quality of each appropriate
  Federal banking agency shall assign one or more employees of the Office of
  Regulatory Quality to each regional office of such agency. The employee or
  employees so assigned shall be sufficient to adequately monitor and maintain
  the quality of the examination, regulation and enforcement activities of
  that regional office.
  `(c) Any insured depository institution, and any officer, director,
  employee or other representative of any insured depository institution,
  may report to the Office of Regulatory Quality of the appropriate Federal
  banking agency responsible for the supervision of that insured depository
  institution any complaints or questions that such institution or person
  may have regarding the examination, regulation or enforcement activities
  of the Federal banking agency or any employee of that agency.
  `(d) The Offices of Regulatory Quality of the appropriate Federal banking
  agencies shall, on a coordinated basis, develop a uniform form which sets
  forth the standards upon which the accuracy, consistency and quality of
  the examination, regulation and enforcement activities of each appropriate
  Federal banking agency shall be evaluated. The form shall be made available
  to each insured depository institution for use in evaluating the appropriate
  Federal banking agencies. The provisions of section 716(c) of Title 31
  shall apply to information in any such form submitted to the director of
  each of the Offices of Regulatory Quality, or any representatives of that
  Office and they shall maintain the confidentiality of any such information,
  as well as maintain the confidentiality of the identity of such institution
  and its representatives.
  `(e) The Office of Regulatory Quality shall promptly investigate and
  respond to each complaint and question received under subsection (c) with
  respect to the Federal banking agency of which it is a part. If the Office
  receives a complaint or question regarding another Federal banking agency,
  or an employee of another Federal banking agency, it shall promptly refer
  such complaint or question to the appropriate Office of Regulatory Quality
  for that agency.
  `(f) The director of the Office of Regulatory Quality, and any duly
  authorized representative of that Office, shall have access to, and the
  right to examine and copy, all records and recorded information in any
  form within the possession or control of that Federal banking agency or any
  employee or representative of that agency which the director of the Office
  of Regulatory Quality deems relevant to the investigation under this section.
  `(g) The Director of the Office of Regulatory Quality shall have the same
  right of access to information under this section with respect to the
  appropriate Federal banking agency, and the same right to enforce this
  access, as the Comptroller General pursuant to section 716 of Title 31.
  `(h) The provisions of section 716(c) of Title 31 shall apply to information
  obtained by the director of the Office of Regulatory Quality, or any
  representative of that Office and they shall maintain the confidentiality of
  any complaint or question received from any insured financial institution
  or any representative of that institution, as well as maintain the
  confidentiality of the identity of such institution and representative.
  `(i) The director of the Office of Regulatory Quality for each appropriate
  Federal banking agency shall submit an annual report to the Congress which
  shall contain information, with respect to the twelve-month period for
  which such report is made, regarding the accuracy, consistency and quality
  of the examination, regulation and enforcement activities of such agency,
  the nature and number of complaints and questions received regarding such
  agency and its employees and the actions taken by that Office of Regulatory
  Quality to improve the accuracy, consistency and quality of the examination,
  regulation and enforcement activities of the agency. The director of such
  Office shall also include within that report recommendations to simplify
  and streamline such examination, regulation, and enforcement activities.'.
SEC. 222. CLERICAL AMENDMENT.
  Section 40 of the Federal Deposit Insurance Act (12 U.S.C. 1831s), as added
  by section 151 if the Federal Deposit Insurance Corporation Improvement
  Act of 1991, is redesignated as section 40A.
TITLE III--NON-SUPERVISORY REFORMS
Subtitle A--Expedited Funds Availability and Electronic Transfers
SEC. 301. AVAILABILITY SCHEDULES.
  (a) TREASURY CHECKS- Section 603(a)(2)(A) of the Expedited Funds Availability
  Act (12 U.S.C. 4002(a)(2)(A)) is amended--
  (1) by redesignating clauses (i) and (ii) as clauses (ii) and (iii),
  respectively; and
  (2) by inserting before clause (ii) (as redesignated), the following
  new clause:
  `(i) is deposited at a receiving depository institution (other than by
  use of a propriety ATM) which is staffed by individuals employed by such
  institutions;'.
  (b) PROPRIETARY ATM EXCEPTION- Section 603(a)(2)(E)) of the Expedited
  Funds Availability Act (12 U.S.C. 4002(A)(2)(E)) is amended by inserting
  `(other than by use of a proprietary ATM)' after `branch of a depository
  institution'.
  (c) LOCAL CHECKS- Section 603(b)(1) of the Expedited Funds Availability
  Act (12 U.S.C. 4002(b)(1)) is amended by striking `one business day'
  and inserting instead `two business days'.
SEC. 302. DEFINITION OF A NEW ACCOUNT.
  Section 604(a) of the Expedited Funds Availability Act (12 U.S.C. 4003(a))
  is amended by striking `thirty-day period' and inserting instead `ninety-day
  period'.
SEC. 303. AUTHORITY TO ESTABLISH RULES REGARDING PAYMENT SYSTEM LOSSES
AND LIABILITIES.
  Section 611(f) of the Expedited Funds Availability Act (12 U.S.C. 4010(f))
  is amended in the first sentence by inserting `, and other entities
  participating in the payments system, including States and political
  subdivisions thereof on which checks are drawn,' after `depository
  institutions'.
Subtitle B--Amendments to the Truth in Lending Act
SEC. 311. EXEMPTION FOR CERTAIN BORROWERS.
  Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended by
  adding at the end the following new paragraph:
  `(7) Credit transactions involving a consumer who had individual income
  on excess of $200,000 in each of the two most recent calendar years or who
  has an individual net worth, or joint net worth with that person's spouse,
  at the time of the transaction, that exceeds $1,000,000.'.
SEC. 312. TRUTH IN LENDING ACT RIGHT OF RESCISSION.
  Section 125(a) of the Truth in Lending Act (15 U.S.C. 1635(a)) is amended by
  adding at the end the following sentence: `The creditor shall be deemed to
  have delivered to an obligor the information, rescission forms and statement
  of material disclosures required pursuant to this section notwithstanding
  any errors included in such information, forms or statement, provided
  that any such error is unintentional and does not materially understate
  the cost of the transaction to the obligor.'.
Subtitle C--Truth-In-Savings Amendments
SEC. 321. TEMPORARY REGULATORY COMPLIANCE MORATORIUM.
  (a) IN GENERAL- Beginning on the date of enactment of this Act, and ending
  fifteen months after such date, no regulation issued under the Truth In
  Savings Act shall be applied with respect to any depository institution
  that has total assets of not more than $100,000,000.
  (b) COST STUDY ANALYSIS- The Board of Governors of the Federal Reserve
  System (hereafter referred to as the `Board') shall conduct a full study,
  including a full cost benefit analysis, on the costs and benefits to each
  depository institution that has total assets of not more than $100,000,000
  and its  customers of compliance with regulations issued under the Truth
  in Savings Act.
  (c) REPORT- Not later than twelve months after the date of enactment of
  this Act, the Board shall submit to the President and to the Congress a
  report of its findings pursuant to the study and analysis conducted under
  subsection (b).
  (d) DEFINITION- For purposes of this section, the term `depository
  institution' has the same meaning as in clauses (i) through (vi) of section
  19(b)(1)(A) of the Federal Reserve Act.
Subtitle D--Homeownership Amendments
SEC. 331. ESTIMATES OF REAL ESTATE SETTLEMENT COSTS.
  Section 5(d) of the Real Estate Settlement Procedures Act of 1974 (12
  U.S.C. 2604(d)) is amended by amending the last sentence to read as follows:
  `The lender shall provide such booklet by delivering it or placing it in the
  mail not later than three business days after the application is received,
  except that no booklet need be provided if the lender denies the application
  for credit within three business days after the application is received.'.
SEC. 332. HOME MORTGAGE DISCLOSURE ACT EXEMPTION.
  The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is
  amended--
  (1) in section 304 (12 U.S.C. 2803), by striking subsection (i); and
  (2) in section 309 (12 U.S.C. 2808) by adding at the end thereof `The
  dollar amount of total assets referred to in this section shall be adjusted
  annually on January 1 by the annual percentage change in the Consumer
  Price Index reported for the previous June 1.'.
SEC. 333. ADJUSTABLE RATE MORTGAGE CAPS.
  Section 1204(d)(2) of the Competitive Equality Banking Act of 1987 (12
  U.S.C. 3806(d)(2)) is amended by striking `any loan' and inserting instead
  `any consumer loan'.
SEC. 334. HOMEOWNERSHIP DEBT COUNSELING NOTIFICATION.
  Section 106(c)(5) of the Housing and Urban Development Act of 1968 (12
  U.S.C. 1701x(c)(5)) is repealed.
SEC. 335. ELIMINATION OF DUPLICATIVE DATA COLLECTION.
  Effective six months after the date of enactment of this Act, an appropriate
  Federal banking agency shall not require any insured depository institution
  (as  defined in section 3(q) of the Federal Deposit Insurance Act) to
  prepare, file, or maintain data to further the purposes of, or to fulfill
  the requirements of, the Fair Housing Act if the preparation, filing, or
  maintenance of such data is required under the Home Mortgage Disclosure
  Act of 1975.