Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	5,288	n/a	n/a
Engrossed in House	5,301	3	2%
Referred in Senate	5,262	5 Show Changes Hide Changes	5%

Display Version Introduced in House Engrossed in House Referred in Senate

HR 6312 EHRFSCommentsClose CommentsPermalink

110th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 6312CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To advance credit union efforts to promote economic growth, modify credit union regulatory standards and reduce burdens, to provide regulatory relief and improve productivity for insured depository institutions, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Credit Union, Bank, and Thrift Regulatory Relief Act of 2008’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--CREDIT UNIONS

Sec. 101. Investments in securities by Federal credit unions.CommentsClose CommentsPermalink





Sec. 102. Increase in investment limit in credit union service organizations.CommentsClose CommentsPermalink





Sec. 103. Member business loan exclusion for loans to nonprofit religious organizations.CommentsClose CommentsPermalink





Sec. 104. Authority of NCUA to establish longer maturities for certain credit union loans.CommentsClose CommentsPermalink





Sec. 105. Providing the National Credit Union Administration with greater flexibility in responding to market conditions.CommentsClose CommentsPermalink





Sec. 106. Conversions of certain credit unions to a community charter.CommentsClose CommentsPermalink





Sec. 107. Credit union participation in the SBA section 504 program.CommentsClose CommentsPermalink





Sec. 108. Amendments relating to credit union service to underserved areas.CommentsClose CommentsPermalink





Sec. 109. Short-term payday loan alternatives within field of membership.CommentsClose CommentsPermalink





Sec. 110. Credit union governance.CommentsClose CommentsPermalink





Sec. 111. Encouraging small business development in underserved urban and rural communities.CommentsClose CommentsPermalink

TITLE II--SAVINGS ASSOCIATION PROVISIONS

Sec. 201. Restatement of authority for Federal savings associations to invest in small business investment companies.CommentsClose CommentsPermalink





Sec. 202. Removal of limitation on investments in auto loans.CommentsClose CommentsPermalink





Sec. 203. Repeal of qualified thrift lender requirement with respect to out-of-state branches.CommentsClose CommentsPermalink





Sec. 204. Small business and other commercial loans.CommentsClose CommentsPermalink





Sec. 205. Increase in limits on commercial real estate loans.CommentsClose CommentsPermalink





Sec. 206. Savings association credit card banks.CommentsClose CommentsPermalink

TITLE III--NOTICE PROVISIONS

Sec. 301. Exception to annual privacy notice requirement under the Gramm-Leach-Bliley Act.CommentsClose CommentsPermalink

TITLE IV--BUSINESS CHECKING

Sec. 401. Short title.CommentsClose CommentsPermalink





Sec. 402. Interest-bearing transaction accounts authorized for all businesses.CommentsClose CommentsPermalink





Sec. 403. Interest-bearing transaction accounts authorized.CommentsClose CommentsPermalink





Sec. 404. Rules of construction.CommentsClose CommentsPermalink





Sec. 405. Consumer banking costs assessment.CommentsClose CommentsPermalink

TITLE I--CREDIT UNIONSCommentsClose CommentsPermalink

SEC. 101. INVESTMENTS IN SECURITIES BY FEDERAL CREDIT UNIONS.

Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended--CommentsClose CommentsPermalink





(1) by striking ‘A Federal credit union’ and inserting ‘(a) In General- A Federal credit union’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(b) Investment for the Credit Union’s Own Account-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In addition to the investments authorized in subsection (a), a Federal credit union may purchase and hold for its own account such investment securities of investment grade as the Board may authorize by regulation, subject to such limitations and restrictions as the Board may prescribe in the regulations.CommentsClose CommentsPermalink





‘(2) PERCENTAGE LIMITATIONS-CommentsClose CommentsPermalink





‘(A) SINGLE OBLIGOR- In no event may the total amount of investment securities of any single obligor or maker held by a Federal credit union for the credit union’s own account exceed at any time an amount equal to 10 percent of the net worth of the credit union.CommentsClose CommentsPermalink





‘(B) AGGREGATE INVESTMENTS- In no event may the aggregate amount of investment securities held by a Federal credit union for the credit union’s own account exceed at any time an amount equal to 10 percent of the assets of the credit union.CommentsClose CommentsPermalink





‘(3) INVESTMENT SECURITY DEFINED-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of this subsection, the term ‘investment security’ means marketable obligations evidencing the indebtedness of any person in the form of bonds, notes, or debentures and other instruments commonly referred to as investment securities.CommentsClose CommentsPermalink





‘(B) FURTHER DEFINITION BY BOARD- The Board may further define the term ‘investment security’.CommentsClose CommentsPermalink





‘(4) INVESTMENT GRADE DEFINED- The term ‘investment grade’ means with respect to an investment security purchased by a credit union for its own account, an investment security that at the time of such purchase is rated in one of the 4 highest rating categories by at least 1 nationally recognized statistical rating organization.CommentsClose CommentsPermalink





‘(5) CLARIFICATION OF PROHIBITION ON STOCK OWNERSHIP- No provision of this subsection shall be construed as authorizing a Federal credit union to purchase shares of stock of any corporation for the credit union’s own account, except as otherwise permitted by law.’.CommentsClose CommentsPermalink

SEC. 102. INCREASE IN INVESTMENT LIMIT IN CREDIT UNION SERVICE ORGANIZATIONS.

Section 107(a)(7)(I) of the Federal Credit Union Act (12 U.S.C. 1757(7)(I)) (as so redesignated by section 101(1)) is amended by striking ‘up to 1 per centum of the total paid’ and inserting ‘up to 3 percent of the total paid’.CommentsClose CommentsPermalink

SEC. 103. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO NONPROFIT RELIGIOUS ORGANIZATIONS.

Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 1757a(a)) is amended by inserting ‘, excluding loans made to nonprofit religious organizations,’ after ‘total amount of such loans’.CommentsClose CommentsPermalink

SEC. 104. AUTHORITY OF NCUA TO ESTABLISH LONGER MATURITIES FOR CERTAIN CREDIT UNION LOANS.

Section 107(a)(5) of the Federal Credit Union Act (12 U.S.C. 1757(5)) (as so redesignated by section 101(1)) is amended in the matter preceding subparagraph (A), by striking ‘except as otherwise provided herein’ and inserting ‘or any longer maturity as the Board may allow, in regulations, except as otherwise provided in this Act’.CommentsClose CommentsPermalink

SEC. 105. PROVIDING THE NATIONAL CREDIT UNION ADMINISTRATION WITH GREATER FLEXIBILITY IN RESPONDING TO MARKET CONDITIONS.

Section 107(a)(5)(A)(vi)(I) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so redesignated by section 101(1)) is amended by striking ‘six-month period and that prevailing interest rate levels’ and inserting ‘6-month period or that prevailing interest rate levels’.CommentsClose CommentsPermalink

SEC. 106. CONVERSIONS OF CERTAIN CREDIT UNIONS TO A COMMUNITY CHARTER.

Section 109(g) of the Federal Credit Union Act (12 U.S.C. 1759(g)) is amended by inserting after paragraph (2) the following new paragraph:CommentsClose CommentsPermalink





‘(3) CRITERIA FOR CONTINUED MEMBERSHIP OF CERTAIN MEMBER GROUPS IN COMMUNITY CHARTER CONVERSIONS- In the case of a voluntary conversion of a common-bond credit union described in paragraph (1) or (2) of subsection (b) into a community credit union described in subsection (b)(3), the Board shall prescribe, by regulation, the criteria under which the Board may determine that a member group or other portion of a credit union’s existing membership, that is located outside the well-defined local community, neighborhood, or rural district that shall constitute the community charter, can be satisfactorily served by the credit union and remain within the community credit union’s field of membership.’.CommentsClose CommentsPermalink

SEC. 107. CREDIT UNION PARTICIPATION IN THE SBA SECTION 504 PROGRAM.

Section 107(a)(5)(A)(iii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(iii)) (as so redesignated by section 101(1)) is amended by inserting ‘, and applicable regulations,’ after ‘specified in the law’.CommentsClose CommentsPermalink

SEC. 108. AMENDMENTS RELATING TO CREDIT UNION SERVICE TO UNDERSERVED AREAS.

(a) In General- Paragraph (2) of section 109(c) of the Federal Credit Union Act (12 U.S.C. 1759(c)(2)) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) EXCEPTION FOR UNDERSERVED AREAS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Notwithstanding subsection (b), the Board may approve an application by a Federal credit union to allow the membership of such credit union to include any person or organization whose principal residence or place of business is located within a local community, neighborhood, or rural district if--CommentsClose CommentsPermalink





‘(i) the Board determines--CommentsClose CommentsPermalink





‘(I) at any time after August 7, 1998, that all of the local community, neighborhood, or rural district taken into account for purposes of this paragraph is an underserved area (as defined in section 101(10)); andCommentsClose CommentsPermalink





‘(II) at the time of such approval, that the credit union is well capitalized or adequately capitalized (as defined in section 216(c)(1)); andCommentsClose CommentsPermalink





‘(ii) before the end of the 24-month period beginning on the date of such approval, the credit union has established and maintains an office or facility in the local community, neighborhood, or rural district at which credit union services are available.CommentsClose CommentsPermalink





‘(B) TERMINATION OF APPROVAL- Any failure of a Federal credit union to meet the requirement of clause (ii) of subparagraph (A) by the end of the 24-month period referred to in such clause shall constitute a termination, as a matter of law, of any approval of an application under this paragraph by the Board with respect to the membership of such credit union.CommentsClose CommentsPermalink





‘(C) ANNUAL CREDIT UNION REPORTING REQUIREMENT- Any Federal credit union which has an application approved under this paragraph shall submit an annual report to the Administration on the number of members of the credit union who are members by reason of such application and the number of offices or facilities maintained by the credit union in the local community, neighborhood, or rural district taken into account by the Board in approving such application.CommentsClose CommentsPermalink





‘(D) PUBLICATION BY ADMINISTRATION- The Administration shall publish annually a report containing--CommentsClose CommentsPermalink





‘(i) a list of all the applications approved under this paragraph prior to the publication of the report;CommentsClose CommentsPermalink





‘(ii) the number and locations of the underserved areas taken into account in approving such applications; andCommentsClose CommentsPermalink





‘(iii) the total number of members of credit unions who are members by reason of the approval of such applications.’.CommentsClose CommentsPermalink





(b) Underserved Area Defined- Section 101 of the Federal Credit Union Act (12 U.S.C. 1752) is amended--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of paragraph (8);CommentsClose CommentsPermalink





(2) by striking the period at the end of paragraph (9) and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(10) the term ‘underserved area’--CommentsClose CommentsPermalink





‘(A) means a geographic area consisting of a single census tract or a group of census tracts, each of which--CommentsClose CommentsPermalink





‘(i) meets the criteria for--CommentsClose CommentsPermalink





‘(I) a low income community, as defined in section 45D(e) of the Internal Revenue Code of 1986; orCommentsClose CommentsPermalink





‘(II) an investment area, as defined and designated under section 103(16) of the Community Development Banking and Financial Institutions Act of 1994; andCommentsClose CommentsPermalink





‘(ii) is not a tract in which 50 percent or more of the resident families have annual incomes in excess of $75,000 (as adjusted periodically by the Board, at the discretion of the Board, to reflect changes in the average Consumer Price Index for all-urban consumers published by the Department of Labor); andCommentsClose CommentsPermalink





‘(B) notwithstanding subparagraph (A), includes, with respect to any Federal credit union, any geographic area within which such credit union--CommentsClose CommentsPermalink





‘(i) has received approval to provide service before the date of the enactment of the Credit Union, Bank, and Thrift Regulatory Relief Act of 2008 from the National Credit Union Administration; andCommentsClose CommentsPermalink





‘(ii) has established a service facility before such date of enactment.’.CommentsClose CommentsPermalink

SEC. 109. SHORT-TERM PAYDAY LOAN ALTERNATIVES WITHIN FIELD OF MEMBERSHIP.

Section 107(a) of the Federal Credit Union Act (12 U.S.C. 1757(5)) (as so redesignated by section 101(1)) is amended--CommentsClose CommentsPermalink





(1) by redesignating paragraphs (16) and (17) as paragraphs (17) and (18), respectively; andCommentsClose CommentsPermalink





(2) by inserting after paragraph (15) the end the following new paragraph:CommentsClose CommentsPermalink





‘(16) to make short-term unsecured loans as an alternative to payday loans, in amounts not more than $1,000 each and for a term of not more than 90 days, to nonmembers in the field of membership, subject to the same terms and conditions as are applicable under paragraph (5)(A), including the interest rate ceiling, with respect to loans to members, to the extent applicable, and to regulations prescribed by the Board.’.CommentsClose CommentsPermalink

SEC. 110. CREDIT UNION GOVERNANCE.

(a) Expulsion of Members for Just Cause- Subsection (b) of section 118 of the Federal Credit Union Act (12 U.S.C. 1764(b)) is amended to read as follows:CommentsClose CommentsPermalink





‘(b) Policy and Actions of Boards of Directors of Federal Credit Unions-CommentsClose CommentsPermalink





‘(1) EXPULSION OF MEMBERS FOR NONPARTICIPATION OR FOR JUST CAUSE- The board of directors of a Federal credit union may, by majority vote of a quorum of directors, adopt and enforce a policy with respect to expulsion from membership, by a majority vote of such board of directors, based on just cause, including disruption of credit union operations, or on nonparticipation by a member in the affairs of the credit union.CommentsClose CommentsPermalink





‘(2) WRITTEN NOTICE OF POLICY TO MEMBERS- If a policy described in paragraph (1) is adopted, written notice of the policy as adopted and the effective date of such policy shall be provided to--CommentsClose CommentsPermalink





‘(A) each existing member of the credit union not less than 30 days prior to the effective date of such policy; andCommentsClose CommentsPermalink





‘(B) each new member prior to or upon applying for membership.’.CommentsClose CommentsPermalink





(b) Term Limits Authorized for Board Members of Federal Credit Unions- Section 111(a) of the Federal Credit Union Act (12 U.S.C. 1761(a)) is amended by adding at the end the following new sentence: ‘The bylaws of a Federal credit union may limit the number of consecutive terms any person may serve on the board of directors of such credit union.’.CommentsClose CommentsPermalink

SEC. 111. ENCOURAGING SMALL BUSINESS DEVELOPMENT IN UNDERSERVED URBAN AND RURAL COMMUNITIES.

Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘or’ after the semicolon at the end of clause (iv);CommentsClose CommentsPermalink





(2) by redesignating clause (v) as clause (vi); andCommentsClose CommentsPermalink





(3) by inserting after clause (iv) the following new clause:CommentsClose CommentsPermalink





‘(v) that is made to a member, the proceeds of which are to be used for commercial, corporate, business, farm or agricultural purposes in an underserved area if such extension of credit--CommentsClose CommentsPermalink





‘(I) is made to a person or organization whose principal residence or place of business is located within an underserved area (as defined in section 101(10)) served by the credit union, and is not a business, or a local outlet of a business, operating on a nationwide basis (for purposes of the preceding clause, a locally-owned franchise that consists only of local operations shall not be treated as a business operating on a nationwide basis); orCommentsClose CommentsPermalink





‘(II) is secured by real property located within, or is intended to operate as part of a business located within, such underserved area; or’.CommentsClose CommentsPermalink

TITLE II--SAVINGS ASSOCIATION PROVISIONSCommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(V) AUTO LOANS- Loans and leases for motor vehicles acquired for personal, family, or household purposes.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(VIII) Loans and leases for motor vehicles acquired for personal, family, or household purposes.’.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(W) SMALL BUSINESS LOANS- Small business loans, as defined in regulations which the Director shall prescribe.’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink

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’.CommentsClose CommentsPermalink

SEC. 206. 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.CommentsClose CommentsPermalink

TITLE III--NOTICE PROVISIONSCommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(c) Exception to Annual Notice Requirement- A financial institution that--CommentsClose CommentsPermalink





‘(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);CommentsClose CommentsPermalink





‘(2) does not share information with affiliates under section 603(d)(2)(A)(iii) of the Fair Credit Reporting Act; andCommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





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).CommentsClose CommentsPermalink





‘(d) Exception to Notice Requirement- A financial institution shall not be required to provide any disclosure under this section if--CommentsClose CommentsPermalink





‘(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; orCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

TITLE IV--BUSINESS CHECKINGCommentsClose CommentsPermalink

SEC. 401. SHORT TITLE.

This title may be cited as the ‘Business Checking Fairness Act of 2008’.CommentsClose CommentsPermalink

SEC. 402. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL BUSINESSES.

Section 2 of Public Law 93-100 (12 U.S.C. 1832) is amended--CommentsClose CommentsPermalink





(1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; andCommentsClose CommentsPermalink





(2) by inserting after subsection (a) the following:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 403. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.

(a) Repeal of Prohibition on Payment of Interest on Demand Deposits-CommentsClose CommentsPermalink





(1) FEDERAL RESERVE ACT- Section 19(i) of the Federal Reserve Act (12 U.S.C. 371a) is amended to read as follows:CommentsClose CommentsPermalink





‘(i) [Repealed]’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(g) [Repealed]’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) the absorption, by the depository institution, of expenses incidental to providing a normal banking service with respect to such escrow account;CommentsClose CommentsPermalink





(2) the forbearance, by the depository institution, from charging a fee for providing any such banking function; andCommentsClose CommentsPermalink





(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,CommentsClose CommentsPermalink





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.CommentsClose CommentsPermalink

SEC. 405. CONSUMER BANKING COSTS ASSESSMENT.

(a) In General- The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended--CommentsClose CommentsPermalink





(1) by redesignating sections 30 and 31 as sections 31 and 32, respectively; andCommentsClose CommentsPermalink





(2) by inserting after section 29 the following new section:CommentsClose CommentsPermalink

‘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):CommentsClose CommentsPermalink





‘(1) Checking and other transaction accounts.CommentsClose CommentsPermalink





‘(2) Negotiable order of withdrawal and savings accounts.CommentsClose CommentsPermalink





‘(3) Automated teller machine transactions.CommentsClose CommentsPermalink





‘(4) Other electronic transactions.CommentsClose CommentsPermalink





‘(b) Minimum Survey Requirement- The biennial survey described in subsection (a) shall meet the following minimum requirements:CommentsClose CommentsPermalink





‘(1) CHECKING AND OTHER TRANSACTION ACCOUNTS- Data on checking and transaction accounts shall include, at a minimum, the following:CommentsClose CommentsPermalink





‘(A) Monthly and annual fees and minimum balances to avoid such fees.CommentsClose CommentsPermalink





‘(B) Minimum opening balances.CommentsClose CommentsPermalink





‘(C) Check processing fees.CommentsClose CommentsPermalink





‘(D) Check printing fees.CommentsClose CommentsPermalink





‘(E) Balance inquiry fees.CommentsClose CommentsPermalink





‘(F) Fees imposed for using a teller or other institution employee.CommentsClose CommentsPermalink





‘(G) Stop payment order fees.CommentsClose CommentsPermalink





‘(H) Nonsufficient fund fees.CommentsClose CommentsPermalink





‘(I) Overdraft fees.CommentsClose CommentsPermalink





‘(J) Fees imposed in connection with bounced-check protection and overdraft protection programs.CommentsClose CommentsPermalink





‘(K) Deposit items returned fees.CommentsClose CommentsPermalink





‘(L) Availability of no-cost or low-cost accounts for consumers who maintain low balances.CommentsClose CommentsPermalink





‘(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:CommentsClose CommentsPermalink





‘(A) Monthly and annual fees and minimum balances to avoid such fees.CommentsClose CommentsPermalink





‘(B) Minimum opening balances.CommentsClose CommentsPermalink





‘(C) Rate at which interest is paid to consumers.CommentsClose CommentsPermalink





‘(D) Check processing fees for negotiable order of withdrawal accounts.CommentsClose CommentsPermalink





‘(E) Fees imposed for using a teller or other institution employee.CommentsClose CommentsPermalink





‘(F) Availability of no-cost or low-cost accounts for consumers who maintain low balances.CommentsClose CommentsPermalink





‘(3) AUTOMATED TELLER TRANSACTIONS- Data on automated teller machine transactions shall include, at a minimum, the following:CommentsClose CommentsPermalink





‘(A) Monthly and annual fees.CommentsClose CommentsPermalink





‘(B) Card fees.CommentsClose CommentsPermalink





‘(C) Fees charged to customers for withdrawals, deposits, and balance inquiries through institution-owned machines.CommentsClose CommentsPermalink





‘(D) Fees charged to customers for withdrawals, deposits, and balance inquiries through machines owned by others.CommentsClose CommentsPermalink





‘(E) Fees charged to noncustomers for withdrawals, deposits, and balance inquiries through institution-owned machines.CommentsClose CommentsPermalink





‘(F) Point-of-sale transaction fees.CommentsClose CommentsPermalink





‘(4) OTHER ELECTRONIC TRANSACTIONS- Data on other electronic transactions shall include, at a minimum, the following:CommentsClose CommentsPermalink





‘(A) Wire transfer fees.CommentsClose CommentsPermalink





‘(B) Fees related to payments made over the Internet or through other electronic means.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Biennial Report to Congress Required-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Conforming Amendment-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the information required to be disclosed under section 127(c);CommentsClose CommentsPermalink





‘(B) the average total amount of finance charges paid by consumers; andCommentsClose CommentsPermalink





‘(C) the following credit card rates and fees:CommentsClose CommentsPermalink





‘(i) Application fees.CommentsClose CommentsPermalink





‘(ii) Annual percentage rates for cash advances and balance transfers.CommentsClose CommentsPermalink





‘(iii) Maximum annual percentage rate that may be charged when an account is in default.CommentsClose CommentsPermalink





‘(iv) Fees for the use of convenience checks.CommentsClose CommentsPermalink





‘(v) Fees for balance transfers.CommentsClose CommentsPermalink





‘(vi) Fees for foreign currency conversions.’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall take effect on January 1, 2009.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

Passed the House of Representatives June 24, 2008.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.

110th CONGRESS2d SessionH. R. 6312AN ACTTo advance credit union efforts to promote economic growth, modify credit union regulatory standards and reduce burdens, to provide regulatory relief and improve productivity for insured depository institutions, and for other purposes LORRAINE C. MILLER, CommentsClose CommentsPermalink

Clerk.CommentsClose CommentsPermalink