Bank and Thrift Regulatory Relief Act of 2008 - Amends the Revised Statutes of the United States to authorize the Comptroller of the Currency, in lieu of requirements relating to the ownership of capital stock in the national bank, to permit an individual to serve as a director of a national bank that has elected, or notified the Comptroller of its intention, to operate as a S corporation under the Internal Revenue Code. Authorizes the Comptroller to prescribe regulations that permit a national bank to be organized other than as a body corporate (that is, as an alternative business organization).
Amends the Home Owners' Loan Act governing federal savings associations to: (1) increase their investment in small business investment companies from 1% to 5%; (2) permit investments in auto loans; (3) repeal the qualified thrift lender requirement for out-of-state branches; (3) eliminate the lending limit on small business loans and increase it on other business loans; and (4) increase the amount of capital available for commercial real estate loans.
Amends the Home Owners' Loan Act to authorize the Director of Office of Thrift Supervision to prescribe regulations that permit a federal savings association to be organized as an alternative business organization.
Amends the Gramm-Leach-Bliley Act to set forth exceptions to the annual privacy notice required of financial institutions.
Business Checking Fairness Act of 2008 - Amends federal banking law to authorize interest-bearing transaction accounts for all businesses.
Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the prohibition against payment of interest on demand deposits.
Amends the Federal Reserve Act to direct the Board of Governors of the Federal Reserve System to obtain biennially, and report to Congress regarding, a sample of specified retail banking services and products provided by insured depository institutions and credit unions, including fees.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5841 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5841
To provide regulatory relief and improve productivity for insured
depository institutions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 17, 2008
Mr. Moore of Kansas (for himself and Mr. Roskam) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To provide regulatory relief and improve productivity for insured
depository 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Bank and Thrift
Regulatory Relief Act of 2008''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--NATIONAL BANK PROVISIONS
Sec. 101. National bank directors.
Sec. 102. Business organization flexibility for national banks.
TITLE II--SAVINGS ASSOCIATION PROVISIONS
Sec. 201. Restatement of authority for Federal savings associations to
invest in small business investment
companies.
Sec. 202. Removal of limitation on investments in auto loans.
Sec. 203. Repeal of qualified thrift lender requirement with respect to
out-of-state branches.
Sec. 204. Small business and other commercial loans.
Sec. 205. Increase in limits on commercial real estate loans.
Sec. 206. Business organization flexibility for Federal savings
associations.
Sec. 207. Savings association credit card banks.
TITLE III--NOTICE PROVISIONS
Sec. 301. Exception to annual privacy notice requirement under the
Gramm-Leach-Bliley Act.
TITLE IV--BUSINESS CHECKING
Sec. 401. Short title.
Sec. 402. Interest-bearing transaction accounts authorized for all
businesses.
Sec. 403. Interest-bearing transaction accounts authorized.
Sec. 404. Rules of construction.
Sec. 405. Consumer banking costs assessment.
TITLE I--NATIONAL BANK PROVISIONS
SEC. 101. NATIONAL BANK DIRECTORS.
(a) In General.--Section 5146 of the Revised Statutes of the United
States (12 U.S.C. 72) is amended--
(1) by striking ``Sec. 5146. Every director must during''
and inserting the following:
``SEC. 5146. REQUIREMENTS FOR BANK DIRECTORS.
``(a) Residency Requirements.--Every director of a national bank
shall, during'';
(2) by striking ``total number of directors. Every director
must own in his or her own right'' and inserting ``total number
of directors.
``(b) Investment Requirement.--
``(1) In general.--Every director of a national bank shall
own, in his or her own right,''; and
(3) by adding at the end the following new paragraph:
``(2) Exception for subordinated debt in certain cases.--In
lieu of the requirements of paragraph (1) relating to the
ownership of capital stock in the national bank, the
Comptroller of the Currency may, by regulation or order, permit
an individual to serve as a director of a national bank that
has elected, or notifies the Comptroller of the bank's
intention to elect, to operate as a S corporation pursuant to
section 1362(a) of the Internal Revenue Code of 1986, if that
individual holds debt of at least $1,000 issued by the national
bank that is subordinated to the interests of depositors and
other general creditors of the national bank.''.
(b) Clerical Amendment.--The table of sections for chapter one of
title LXII of the Revised Statutes of the United States (12 U.S.C. 21
et seq.) is amended by striking the item relating to section 5146 and
inserting the following new item:
``5146. Requirements for bank directors''.
SEC. 102. BUSINESS ORGANIZATION FLEXIBILITY FOR NATIONAL BANKS.
(a) In General.--Chapter one of title LXII of the Revised Statutes
of the United States (12 U.S.C. 21 et seq.) is amended by inserting
after section 5136B the following new section:
``SEC. 5136C. ALTERNATIVE BUSINESS ORGANIZATION.
``(a) In General.--The Comptroller of the Currency may prescribe
regulations--
``(1) to permit a national bank to be organized other than
as a body corporate; and
``(2) to provide requirements for the organizational
characteristics of a national bank organized and operating
other than as a body corporate, consistent with the safety and
soundness of the national bank.
``(b) Equal Treatment.--Except as provided in regulations
prescribed under subsection (a), a national bank that is operating
other than as a body corporate shall have the same rights and
privileges and shall be subject to the same duties, restrictions,
penalties, liabilities, conditions, and limitations as a national bank
that is organized as a body corporate.''.
(b) Technical and Conforming Amendment.--Section 5136 of the
Revised Statutes of the United States (12 U.S.C. 24) is amended, in the
matter preceding the paragraph designated as the ``First'', by
inserting ``or other form of business organization provided under
regulations prescribed by the Comptroller of the Currency under section
5136C'' after ``a body corporate''.
(c) Clerical Amendment.--The table of sections for chapter one of
title LXII of the Revised Statutes of the United States (12 U.S.C. 21
et seq.) is amended by inserting after the item relating to section
5136B the following new item:
``5136C. Alternative business organization.''.
TITLE II--SAVINGS ASSOCIATION PROVISIONS
SEC. 201. RESTATEMENT OF AUTHORITY FOR FEDERAL SAVINGS ASSOCIATIONS TO
INVEST IN SMALL BUSINESS INVESTMENT COMPANIES.
Subparagraph (D) of section 5(c)(4) of the Home Owners' Loan Act
(12 U.S.C. 1464(c)(4)) is amended to read as follows:
``(D) Small business investment companies.--Any
Federal savings association may invest in 1 or more
small business investment companies, or in any entity
established to invest solely in small business
investment companies formed under the Small Business
Investment Act of 1958, except that the total amount of
investments under this subparagraph may not at any time
exceed the amount equal to 5 percent of capital and
surplus of the savings association.''.
SEC. 202. REMOVAL OF LIMITATION ON INVESTMENTS IN AUTO LOANS.
(a) In General.--Section 5(c)(1) of the Home Owners' Loan Act (12
U.S.C. 1464(c)(1)) is amended by adding at the end the following new
subparagraph:
``(V) Auto loans.--Loans and leases for motor
vehicles acquired for personal, family, or household
purposes.''.
(b) Technical and Conforming Amendment Relating to Qualified Thrift
Investments.--Section 10(m)(4)(C)(ii) of the Home Owners' Loan Act (12
U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the end the
following new subclause:
``(VIII) Loans and leases for motor
vehicles acquired for personal, family,
or household purposes.''.
SEC. 203. REPEAL OF QUALIFIED THRIFT LENDER REQUIREMENT WITH RESPECT TO
OUT-OF-STATE BRANCHES.
Section 5(r)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(r)(1))
is amended by striking the last sentence.
SEC. 204. SMALL BUSINESS AND OTHER COMMERCIAL LOANS.
(a) Elimination of Lending Limit on Small Business Loans.--Section
5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(1)) is amended
by inserting after subparagraph (V) (as added by section 202(a) of this
title) the following new subparagraph:
``(W) Small business loans.--Small business loans,
as defined in regulations which the Director shall
prescribe.''.
(b) Increase in Lending Limit on Other Business Loans.--Section
5(c)(2)(A) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is
amended by striking ``, and amounts in excess of 10 percent'' and all
that follows through ``by the Director''.
SEC. 205. INCREASE IN LIMITS ON COMMERCIAL REAL ESTATE LOANS.
Section 5(c)(2)(B)(i) of the Home Owners' Loan Act (12 U.S.C.
1464(c)(2)(B)(i)) is amended by striking ``400 percent'' and inserting
``500 percent''.
SEC. 206. BUSINESS ORGANIZATION FLEXIBILITY FOR FEDERAL SAVINGS
ASSOCIATIONS.
(a) In General.--Section 5 of the Home Owners' Loan Act (12 U.S.C.
1464) is amended by adding at the end the following new subsection:
``(y) Alternative Business Organization.--
``(1) In general.--The Director may prescribe regulations
that--
``(A) permit a Federal savings association to be
organized other than as a corporation; and
``(B) provide requirements for the organizational
characteristics of a Federal savings association
organized and operating other than as a corporation,
consistent with the safety and soundness of the Federal
savings association.
``(2) Equal treatment.--Except as otherwise provided in
regulations prescribed under subsection (1), a Federal savings
association that is operating other than as a corporation shall
have the same rights and privileges and shall be subject to the
same duties, restrictions, penalties, liabilities, conditions,
and limitations as a Federal savings association that is
organized as a corporation.''.
(b) Technical and Conforming Amendments.--
(1) Section 5(a)(1) of the Home Owners' Loan Act (12 U.S.C.
1464(a)(1)) is amended by striking ``organization,
incorporation,'' and inserting ``organization (as a corporation
or other form of business organization provided under
regulations prescribed by the Director under subsection
(x)),''.
(2) The last sentence of section 5(i)(1) of the Home
Owners' Loan Act (12 U.S.C. 1464(i)(1)) is amended by striking
``incorporated'' and inserting ``organized''.
(3) Section 5(o)(1) of the Home Owners' Loan Act (12 U.S.C.
1464(a)(1)) is amended by striking ``organization,
incorporation,'' and inserting ``organization (as a corporation
or other form of business organization provided under
regulations prescribed by the Director under subsection
(x)),''.
SEC. 207. SAVINGS ASSOCIATION CREDIT CARD BANKS.
Section 10(a)(1)(A) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)(1)(A)) is amended by inserting ``and such term does not
include an institution described in section 2(c)(2)(F) of the Bank
Holding Company Act of 1956 for purposes of subsections (a)(1)(E),
(c)(3)(B)(i), (c)(9)(C)(i), and (e)(3)'' before the period at the end.
TITLE III--NOTICE PROVISIONS
SEC. 301. EXCEPTION TO ANNUAL PRIVACY NOTICE REQUIREMENT UNDER THE
GRAMM-LEACH-BLILEY ACT.
Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803) is
amended by adding the following new subsections:
``(c) Exception to Annual Notice Requirement.--A financial
institution that--
``(1) provides nonpublic personal information only in
accordance with the provisions of subsection (b)(2) or (e) of
section 502 or regulations prescribed under section 504(b);
``(2) does not share information with affiliates under
section 603(d)(2)(A)(iii) of the Fair Credit Reporting Act; and
``(3) has not changed its policies and practices with
regard to disclosing nonpublic personal information from the
policies and practices that were disclosed in the most recent
disclosure sent to consumers in accordance with this
subsection,
shall not be required to provide an annual disclosure under this
subsection until such time as the financial institution fails to comply
with any criteria described in paragraph (1), (2), or (3).
``(d) Exception to Notice Requirement.--A financial institution
shall not be required to provide any disclosure under this section if--
``(1) the financial institution is licensed by a State and
is subject to existing regulation of consumer confidentiality
that prohibits disclosure of nonpublic personal information
without knowing and expressed consent of the consumer in the
form of laws, rules, or regulation of professional conduct or
ethics promulgated either by the court of highest appellate
authority or by the principal legislative body or regulatory
agency or body of any State of the United States, the District
of Columbia, any territory of the United States, Puerto Rico,
Guam, American Samoa, the Trust Territory of the Pacific
Islands, the Virgin Islands, or the Northern Mariana Islands;
or
``(2) the financial institution is licensed by a State and
becomes subject to future regulation of consumer
confidentiality that prohibits disclosure of nonpublic personal
information without knowing and expressed consent of the
consumer in the form of laws, rules, or regulation of
professional conduct or ethics promulgated either by the court
of highest appellate authority or by the principal legislative
body or regulatory agency or body of any State of the United
States, the District of Columbia, any territory of the United
States, Puerto Rico, Guam, American Samoa, the Trust Territory
of the Pacific Islands, the Virgin Islands, or the Northern
Mariana Islands.''.
TITLE IV--BUSINESS CHECKING
SEC. 401. SHORT TITLE.
This title may be cited as the ``Business Checking Fairness Act of
2008''.
SEC. 402. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL
BUSINESSES.
Section 2 of Public Law 93-100 (12 U.S.C. 1832) is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by inserting after subsection (a) the following:
``(b) Notwithstanding any other provision of law, any depository
institution may permit the owner of any deposit or account which is a
deposit or account on which interest or dividends are paid and is not a
deposit or account described in subsection (a)(2) to make up to 24
transfers per month (or such greater number as the Board of Governors
of the Federal Reserve System may determine by rule or order), for any
purpose, to another account of the owner in the same institution. An
account offered pursuant to this subsection shall be considered a
transaction account for purposes of section 19 of the Federal Reserve
Act unless the Board of Governors of the Federal Reserve System
determines otherwise.''.
SEC. 403. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.
(a) Repeal of Prohibition on Payment of Interest on Demand
Deposits.--
(1) Federal reserve act.--Section 19(i) of the Federal
Reserve Act (12 U.S.C. 371a) is amended to read as follows:
``(i) [Repealed]''.
(2) Home owners' loan act.--The first sentence of section
5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C.
1464(b)(1)(B)) is amended by striking ``savings association may
not--'' and all that follows through ``(ii) permit any'' and
inserting ``savings association may not permit any''.
(3) Federal deposit insurance act.--Section 18(g) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended to
read as follows:
``(g) [Repealed]''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect at the end of the 2-year period beginning on the date of
the enactment of this Act.
SEC. 404. RULES OF CONSTRUCTION.
In the case of an escrow account maintained at a depository
institution for the purpose of completing the settlement of a real
estate transaction--
(1) the absorption, by the depository institution, of
expenses incidental to providing a normal banking service with
respect to such escrow account;
(2) the forbearance, by the depository institution, from
charging a fee for providing any such banking function; and
(3) any benefit which may accrue to the holder or the
beneficiary of such escrow account as a result of an action of
the depository institution described in subparagraph (1) or (2)
or similar in nature to such action, including any benefits
which have been so determined by the appropriate Federal
regulator,
shall not be treated as the payment or receipt of interest for purposes
of this title and any provision of Public Law 93-100, the Federal
Reserve Act, the Home Owners' Loan Act, or the Federal Deposit
Insurance Act relating to the payment of interest on accounts or
deposits at depository institutions. No provision of this title shall
be construed so as to require a depository institution that maintains
an escrow account in connection with a real estate transaction to pay
interest on such escrow account or to prohibit such institution from
paying interest on such escrow account. No provision of this title
shall be construed as preempting the provisions of law of any State
dealing with the payment of interest on escrow accounts maintained in
connection with real estate transactions.
SEC. 405. CONSUMER BANKING COSTS ASSESSMENT.
(a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is
amended--
(1) by redesignating sections 30 and 31 as sections 31 and
32, respectively; and
(2) by inserting after section 29 the following new
section:
``SEC. 30. SURVEY OF BANK FEES AND SERVICES.
``(a) Biennial Survey Required.--The Board of Governors of the
Federal Reserve System shall obtain biennially a sample, which is
representative by type and size of the institution (including small
institutions) and geographic location, of the following retail banking
services and products provided by insured depository institutions and
insured credit unions (along with related fees and minimum balances):
``(1) Checking and other transaction accounts.
``(2) Negotiable order of withdrawal and savings accounts.
``(3) Automated teller machine transactions.
``(4) Other electronic transactions.
``(b) Minimum Survey Requirement.--The biennial survey described in
subsection (a) shall meet the following minimum requirements:
``(1) Checking and other transaction accounts.--Data on
checking and transaction accounts shall include, at a minimum,
the following:
``(A) Monthly and annual fees and minimum balances
to avoid such fees.
``(B) Minimum opening balances.
``(C) Check processing fees.
``(D) Check printing fees.
``(E) Balance inquiry fees.
``(F) Fees imposed for using a teller or other
institution employee.
``(G) Stop payment order fees.
``(H) Nonsufficient fund fees.
``(I) Overdraft fees.
``(J) Fees imposed in connection with bounced-check
protection and overdraft protection programs.
``(K) Deposit items returned fees.
``(L) Availability of no-cost or low-cost accounts
for consumers who maintain low balances.
``(2) Negotiable order of withdrawal accounts and savings
accounts.--Data on negotiable order of withdrawal accounts and
savings accounts shall include, at a minimum, the following:
``(A) Monthly and annual fees and minimum balances
to avoid such fees.
``(B) Minimum opening balances.
``(C) Rate at which interest is paid to consumers.
``(D) Check processing fees for negotiable order of
withdrawal accounts.
``(E) Fees imposed for using a teller or other
institution employee.
``(F) Availability of no-cost or low-cost accounts
for consumers who maintain low balances.
``(3) Automated teller transactions.--Data on automated
teller machine transactions shall include, at a minimum, the
following:
``(A) Monthly and annual fees.
``(B) Card fees.
``(C) Fees charged to customers for withdrawals,
deposits, and balance inquiries through institution-
owned machines.
``(D) Fees charged to customers for withdrawals,
deposits, and balance inquiries through machines owned
by others.
``(E) Fees charged to noncustomers for withdrawals,
deposits, and balance inquiries through institution-
owned machines.
``(F) Point-of-sale transaction fees.
``(4) Other electronic transactions.--Data on other
electronic transactions shall include, at a minimum, the
following:
``(A) Wire transfer fees.
``(B) Fees related to payments made over the
Internet or through other electronic means.
``(5) Other fees and charges.--Data on any other fees and
charges that the Board of Governors of the Federal Reserve
System determines to be appropriate to meet the purposes of
this section.
``(6) Federal reserve board authority.--The Board of
Governors of the Federal Reserve System may cease the
collection of information with regard to any particular fee or
charge specified in this subsection if the Board makes a
determination that, on the basis of changing practices in the
financial services industry, the collection of such information
is no longer necessary to accomplish the purposes of this
section.
``(c) Biennial Report to Congress Required.--
``(1) Preparation.--The Board of Governors of the Federal
Reserve System shall prepare a report of the results of each
survey conducted pursuant to subsections (a) and (b) of this
section and section 136(b)(1) of the Consumer Credit Protection
Act.
``(2) Contents of the report.--In addition to the data
required to be collected pursuant to subsections (a) and (b),
each report prepared pursuant to paragraph (1) shall include a
description of any discernible trend, in the Nation as a whole,
in a representative sample of the 50 States (selected with due
regard for regional differences), and in each consolidated
metropolitan statistical area (as defined by the Director of
the Office of Management and Budget), in the cost and
availability of the retail banking services, including those
described in subsections (a) and (b) (including related fees
and minimum balances), that delineates differences between
institutions on the basis of the type of institution and the
size of the institution, between large and small institutions
of the same type, and any engagement of the institution in
multistate activity.
``(3) Submission to the congress.--The Board of Governors
of the Federal Reserve System shall submit an biennial report
to the Congress not later than June 1, 2009, and before the end
of each 2-year period beginning after such date.
``(d) Definitions.--For purposes of this section, the term `insured
depository institution' has the meaning given such term in section 3 of
the Federal Deposit Insurance Act, and the term `insured credit union'
has the meaning given such term in section 101 of the Federal Credit
Union Act.''.
(b) Conforming Amendment.--
(1) In general.--Paragraph (1) of section 136(b) of the
Truth in Lending Act (15 U.S.C. 1646(b)(1)) is amended to read
as follows:
``(1) Collection required.--The Board shall collect, on a
semiannual basis, from a broad sample of financial institutions
which offer credit card services, credit card price and
availability information including--
``(A) the information required to be disclosed
under section 127(c);
``(B) the average total amount of finance charges
paid by consumers; and
``(C) the following credit card rates and fees:
``(i) Application fees.
``(ii) Annual percentage rates for cash
advances and balance transfers.
``(iii) Maximum annual percentage rate that
may be charged when an account is in default.
``(iv) Fees for the use of convenience
checks.
``(v) Fees for balance transfers.
``(vi) Fees for foreign currency
conversions.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on January 1, 2009.
(c) Repeal of Other Report Provisions.--Section 1002 of Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 and section
108 of the Riegle-Neal Interstate Banking and Branching Efficiency Act
of 1994 are hereby repealed.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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