the retained earnings, surplus, undivided profits, and equity reserves, if any, of the bank. "(2) EXCEPTION.-Except as specifically provided in this section or through the declaration of a dividend or a capital distribution by a Federal home loan bank, or in the event of liquidation of the bank, a member shall have no right to withdraw or otherwise receive distribution of any portion of the retained earnings of the bank. "(3) LIMITATION.-A Federal home loan bank may not make any distribution of its retained earnings unless, following such distribution, the bank would continue to meet all applicable capital requirements.". TITLE VII-OTHER PROVISIONS Subtitle A-ATM Fee Reform SEC. 701. SHORT TITLE. This subtitle may be cited as the "ATM Fee Reform Act of 1999". SEC. 702. ELECTRONIC FUND TRANSFER FEE DIS- "(3) FEE DISCLOSURES AT AUTOMATED TELLER MACHINES. "(A) IN GENERAL.-The regulations prescribed under paragraph (1) shall require any automated teller machine operator who imposes a fee on any consumer for providing host transfer services to such consumer to provide notice in accordance with subparagraph (B) to the consumer (at the time the service is provided) of— "(i) the fact that a fee is imposed by such operator for providing the service; and "(ii) the amount of any such fee. "(B) NOTICE REQUIREMENTS.— "(i) ON THE MACHINE.-The notice required under clause (i) of subparagraph (A) with respect to any fee described in such subparagraph shall be posted in a prominent and conspicuous location on or at the automated teller machine at which the electronic fund transfer is initiated by the consumer. "(ii) ON THE SCREEN.-The notice required under clauses (i) and (ii) of subparagraph (A) with respect to any fee described in such subparagraph shall appear on the screen of the automated teller machine, or on a paper notice issued from such machine, after the transaction is initiated and before the consumer is irrevocably committed to completing the transaction, except that during the period beginning on the date of the enactment of the Gramm-Leach-Bliley Act and ending on December 31, 2004, this clause shall not apply to any automated teller machine that lacks the technical capability to disclose the notice on the screen or to issue a paper notice after the transaction is initiated and before the consumer is irrevocably committed to completing the transaction. "(C) PROHIBITION ON FEES NOT PROPERLY DISCLOSED AND EXPLICITLY ASSUMED BY CONSUMER.-No fee may be imposed by any automated teller machine operator in connection with any electronic fund transfer initiated by a consumer for which a notice is required under subparagraph (A), unless "(i) the consumer receives such notice in accordance with subparagraph (B); and "(ii) the consumer elects to continue in the manner necessary to effect the transaction after receiving such notice. “(D) DEFINITIONS.-For purposes of this paragraph, the following definitions shall apply: “(i) AUTOMATED TELLER MACHINE OPERATOR.-The term automated teller machine operator' means any person who "(I) operates an automated teller machine at which consumers initiate electronic fund transfers; and "(II) is not the financial institution that holds the account of such consumer from which the transfer is made. "(ii) ELECTRONIC FUND TRANSFER.-The term 'electronic fund transfer' includes a transaction that involves a balance inquiry initiated by a consumer in the same manner as an electronic fund transfer, whether or not the consumer initiates a transfer of funds in the course of the transaction. "(iii) HOST TRANSFER SERVICES.-The term 'host transfer services' means any electronic fund transfer made by an automated teller machine operator in connection with a transaction initiated by a consumer at an automated teller machine operated by such operator.". SEC. 703. DISCLOSURE OF POSSIBLE FEES TO CONSUMERS WHEN ATM CARD IS ISSUED. Section 905(a) of the Electronic Fund Transfer Act (15 U.S.C. 1693c(a)) is amended (1) by striking "and" at the end of paragraph (8); (2) by striking the period at the end of paragraph (9) and inserting “; and"; and (3) by inserting after paragraph (9) the following new paragraph: "(10) a notice to the consumer that a fee may be imposed by— "(A) an automated teller machine operator (as defined in section 904(d)(3)(D)(i)) if the consumer initiates a transfer from an automated teller machine that is not operated by the person issuing the card or other means of access; and "(B) any national, regional, or local network utilized to effect the transaction.". SEC. 704. FEASIBILITY STUDY. (a) IN GENERAL.-The Comptroller General of the United States shall conduct a study of the feasibility of requiring, in connection with any electronic fund transfer initiated by a consumer through the use of an automated teller machine (1) a notice to be provided to the consumer before the consumer is irrevocably committed to completing the transaction, which clearly states the amount of any fee that will be imposed upon the consummation of the transaction by— (A) any automated teller machine operator (as defined in section 904(d)(3)(D)(i) of the Electronic Fund Transfer Act) involved in the transaction; (B) the financial institution holding the account of the consumer; (C) any national, regional, or local network utilized to effect the transaction; and (D) any other party involved in the transfer; and (2) the consumer to elect to consummate the transaction after receiving the notice described in paragraph (1). (b) FACTORS TO BE CONSIDERED.-In conducting the study required under subsection (a) with regard to the notice requirement described in such subsection, the Comptroller General shall consider the following factors: (1) The availability of appropriate technology. (2) Implementation and operating costs. (3) The competitive impact any such notice requirement would have on various sizes and types of institutions, if implemented. (4) The period of time that would be reasonable for implementing any such notice requirement. (5) The extent to which consumers would benefit from any such notice requirement. (6) Any other factor the Comptroller General determines to be appropriate in analyzing the feasibility of imposing any such notice requirement. (c) REPORT TO THE CONGRESS.-Before the end of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress containing (1) the findings and conclusions of the Comptroller General in connection with the study required under subsection (a); and (2) the recommendation of the Comptroller General with regard to the question of whether a notice requirement described in subsection (a) should be implemented and, if so, the manner in which such requirement should be implemented. SEC. 705. NO LIABILITY IF POSTED NOTICES ARE DAMAGED. Section 910 of the Electronic Fund Transfer Act (15 U.S.C. 1693h) is amended by adding at the end the following new subsection: "(d) EXCEPTION FOR DAMAGED NOTICES.—If the notice required to be posted pursuant to section 904(d)(3)(B)(i) by an automated teller machine operator has been posted by such operator in compliance with such section and the notice is subsequently removed, damaged, or altered by any person other than the operator of the automated teller machine, the operator shall have no liability under this section for failure to comply with section 904(d)(3)(B)(i).”. Subtitle B-Community Reinvestment SEC. 711. CRA SUNSHINE REQUIREMENTS. The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by inserting after section 47, as added by section 305 of this Act, the following new section: "SEC. 48. CRA SUNSHINE REQUIREMENTS. "(a) PUBLIC DISCLOSURE OF AGREEMENTS.— Any agreement (as defined in subsection (e)) entered into after the date of the enactment of the Gramm-Leach-Bliley Act by an insured depository institution or affiliate with a nongovernmental entity or person made pursuant to or in connection with the Community Reinvestment Act of 1977 involving funds or other resources of such insured depository institution or affiliate "(1) shall be in its entirety fully disclosed, and the full text thereof made available to the appropriate Federal banking agency with supervisory responsibility over the insured depository institution and to the public by each party to the agreement; and "(2) shall obligate each party to comply with this section. “(b) ANNUAL REPORT OF ACTIVITY BY INSURED DEPOSITORY INSTITUTION.-Each insured depository institution or affiliate that is a party to an agreement described in subsection (a) shall report to the appropriate Federal banking agency with supervisory responsibility over the insured depository institution, not less frequently than once each year, such information as the Federal banking agency may by rule require relating to the following actions taken by the party pursuant to the agreement during the preceding 12month period: "(1) Payments, fees, or loans made to any party to the agreement or received from any party to the agreement and the terms and conditions of the same. "(2) Aggregate data on loans, investments, and services provided by each party in its community or communities pursuant to the agreement. "(3) Such other pertinent matters as determined by regulation by the appropriate Federal banking agency with supervisory responsibility over the insured depository institution. "(c) ANNUAL REPORT OF ACTIVITY BY NONGOVERNMENTAL ENTITIES. "(1) IN GENERAL.-Each nongovernmental entity or person that is not an affiliate of an insured depository institution and that is a party to an agreement described in subsection (a) shall report to the appropriate Federal banking agency with supervisory responsibility over the insured depository institution that is a party to such agreement, not less frequently than once each year, an accounting of the use of funds received pursuant to each such agreement during the preceding 12-month period. "(2) SUBMISSION TO INSURED DEPOSITORY INSTITUTION. A nongovernmental entity or person referred to in paragraph (1) may comply with the reporting requirement in such paragraph by transmitting the report to the insured depository institution that is a party to the agreement, and such insured depository institution shall promptly transmit such report to the appropriate Federal banking agency with supervisory authority over the insured depository institution. "(3) INFORMATION TO BE INCLUDED.-The accounting referred to in paragraph (1) shall in clude a detailed, itemized list of the uses to which such funds have been made, including compensation, administrative expenses, travel, entertainment, consulting and professional fees paid, and such other categories, as determined by regulation by the appropriate Federal banking agency with supervisory responsibility over the insured depository institution. “(d) APPLICABILITY.—Subsections (b) and (c) shall not apply with respect to any agreement entered into before the end of the 6-month period beginning on the date of the enactment of the Gramm-Leach-Bliley Act. "(e) DEFINITIONS.— "(1) AGREEMENT.-For purposes of this section, the term 'agreement'— "(A) means— "(i) any written contract, written arrangement, or other written understanding that provides for cash payments, grants, or other consideration with a value in excess of $10,000, or for loans the aggregate amount of principal of which exceeds $50,000, annually (or the sum of all such agreements during a 12-month period with an aggregate value of cash payments, grants, or other consideration in excess of $10,000, or with an aggregate amount of loan principal in excess of $50,000); or “(ii) a group of substantively related contracts with an aggregate value of cash payments, grants, or other consideration in excess of $10,000, or with an aggregate amount of loan principal in excess of $50,000, annually; made pursuant to, or in connection with, the fulfillment of the Community Reinvestment Act of 1977, at least 1 party to which is an insured depository institution or affiliate thereof, whether organized on a profit or not-for-profit basis; and "(B) does not include "(i) any individual mortgage loan; "(ii) any specific contract or commitment for a loan or extension of credit to individuals, businesses, farms, or other entities, if the funds are loaned at rates not substantially below market rates and if the purpose of the loan or extension of credit does not include any re-lending of the borrowed funds to other parties; or "(iii) any agreement entered into by an insured depository institution or affiliate with a nongovernmental entity or person who has not commented on, testified about, or discussed with the institution, or otherwise contacted the institution, concerning the Community Reinvestment Act of 1977. "(2) FULFILLMENT OF CRA.-For purposes of subparagraph (A), the term 'fulfillment' means a list of factors that the appropriate Federal banking agency determines have a material impact on the agency's decision "(A) to approve or disapprove an application for a deposit facility (as defined in section 803 of the Community Reinvestment Act of 1977); or “(B) to assign a rating to an insured depository institution under section 807 of the Community Reinvestment Act of 1977. "(f) VIOLATIONS.— "(1) VIOLATIONS BY PERSONS OTHER THAN INSURED DEPOSITORY INSTITUTIONS OR THEIR AFFILIATES. “(A) MATERIAL FAILURE TO COMPLY.—If the party to an agreement described in subsection (a) that is not an insured depository institution or affiliate willfully fails to comply with this section in a material way, as determined by the appropriate Federal banking agency, the agreement shall be unenforceable after the offending party has been given notice and a reasonable period of time to perform or comply. “(B) DIVERSION OF FUNDS OR RESOURCES.—If funds or resources received under an agreement described in subsection (a) have been diverted contrary to the purposes of the agreement for personal financial gain, the appropriate Federal banking agency with supervisory responsibility over the insured depository institution may impose either or both of the following penalties: "(i) Disgorgement by the offending individual of funds received under the agreement. "(ii) Prohibition of the offending individual from being a party to any agreement described in subsection (a) for a period of not to exceed 10 years. "(2) DESIGNATION OF SUCCESSOR NONGOVERNMENTAL PARTY.-If an agreement described in subsection (a) is found to be unenforceable under this subsection, the appropriate Federal banking agency may assist the insured depository institution in identifying a successor nongovernmental party to assume the responsibilities of the agreement. "(3) INADVERTENT OR DE MINIMIS REPORTING ERRORS.-An error in a report filed under subsection (c) that is inadvertent or de minimis shall not subject the filing party to any penalty. "(g) RULE OF CONSTRUCTION.-No provision of this section shall be construed as authorizing any appropriate Federal banking agency to enforce the provisions of any agreement described in subsection (a). "(h) REGULATIONS. "(1) IN GENERAL.-Each appropriate Federal banking agency shall prescribe regulations, in accordance with paragraph (4), requiring procedures reasonably designed to ensure and monitor compliance with the requirements of this section. “(2) PROTECTION OF PARTIES.—In carrying out paragraph (1), each appropriate Federal banking agency shall "(A) ensure that the regulations prescribed by the agency do not impose an undue burden on the parties and that proprietary and confidential information is protected; and "(B) establish procedures to allow any nongovernmental entity or person who is a party to a large number of agreements described in subsection (a) to make a single or consolidated filing of a report under subsection (c) to an insured depository institution or an appropriate Federal banking agency. "(3) PARTIES NOT SUBJECT TO REPORTING REQUIREMENTS.—The Board of Governors of the Federal Reserve System may prescribe regulations "(A) to prevent evasions of subsection (e)(1)(B)(iii); and "(B) to provide further exemptions under such subsection, consistent with the purposes of this section. "(4) COORDINATION, CONSISTENCY, AND COMPARABILITY. In carrying out paragraph (1), each appropriate Federal banking agency shall consult and coordinate with the other such agencies for the purposes of assuring, to the extent possible, that the regulations prescribed by each such agency are consistent and comparable with the regulations prescribed by the other such agencies.". SEC. 712. SMALL BANK REGULATORY RELIEF. 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. 809. SMALL BANK REGULATORY RELIEF. "(a) IN GENERAL.-Except as provided in subsections (b) and (c), any regulated financial institution with aggregate assets of not more than $250,000,000 shall be subject to routine examination under this title "(1) not more than once every 60 months for an institution that has achieved a rating of 'outstanding record of meeting community credit needs' at its most recent examination under section 804; "(2) not more than once every 48 months for an institution that has received a rating of 'satisfactory record of meeting community credit needs' at its most recent examination under section 804; and "(3) as deemed necessary by the appropriate Federal financial supervisory agency, for an institution that has received a rating of less than 'satisfactory record of meeting community credit needs' at its most recent examination under section 804. "(b) NO EXCEPTION FROM CRA EXAMINATIONS IN CONNECTION WITH APPLICATIONS FOR DE POSIT FACILITIES.-A regulated financial institution described in subsection (a) shall remain subject to examination under this title in connection with an application for a deposit facility. "(c) DISCRETION.-A regulated financial institution described in subsection (a) may be subject to more frequent or less frequent examinations for reasonable cause under such circumstances as may be determined by the appropriate Federal financial supervisory agency.". SEC. 713. FEDERAL RESERVE BOARD STUDY OF CRA LENDING. The Board of Governors of the Federal Reserve System shall conduct a comprehensive study, in consultation with the Chairman and Ranking Member of the Committee on Banking and Financial Services of the House of Representatives and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate, of the Community Reinvestment Act of 1977, which shall focus on (1) the default rates; (2) the delinquency rates; and (3) the profitability; of loans made in conformity with such Act, and report on the study to such Committees not later than March 15, 2000. Such report and supporting data shall also be made available by the Board of Governors of the Federal Reserve System to the public. SEC. 714. PRESERVING THE COMMUNITY REINVESTMENT ACT OF 1977. Nothing in this Act shall be construed to repeal any provision of the Community Reinvestment Act of 1977. SEC. 715. RESPONSIVENESS TO COMMUNITY NEEDS FOR FINANCIAL SERVICES. (a) STUDY.—The Secretary of the Treasury, in consultation with the Federal banking agencies (as defined in section 3(2) of the Federal Deposit Insurance Act), shall conduct a study of the extent to which adequate services are being provided as intended by the Community Reinvestment Act of 1977, including services in low- and moderate-income neighborhoods and for persons of modest means, as a result of the enactment of this Act. (b) REPORTS. (1) IN GENERAL.-The Secretary of the Treasury shall (A) before March 15, 2000, submit a baseline report to the Congress on the study conducted pursuant to subsection (a); and (B) before the end of the 2-year period beginning on the date of the enactment of this Act, in consultation with the Federal banking agencies, submit a final report to the Congress on the study conducted pursuant to subsection (a). (2) RECOMMENDATIONS.-The final report submitted under paragraph (1)(B) shall include such recommendations as the Secretary determines to be appropriate for administrative and legislative action with respect to institutions covered under the Community Reinvestment Act of 1977. Subtitle C-Other Regulatory Improvements SEC. 721. EXPANDED SMALL BANK ACCESS TO S CORPORATION TREATMENT. (a) STUDY.-The Comptroller General of the United States shall conduct a study of— (1) possible revisions to the rules governing S corporations, including (A) increasing the permissible number of shareholders in such corporations; (B) permitting shares of such corporations to be held in individual retirement accounts; (C) clarifying that interest on investments held for safety, soundness, and liquidity purposes should not be considered to be passive income; (D) discontinuation of the treatment of stock held by bank directors as a disqualifying personal class of stock for such corporations; and (E) improving Federal tax treatment of bad debt and interest deductions; and (2) what impact such revisions might have on community banks. (b) REPORT TO THE CONGRESS.-Not later than 6 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Congress on the results of the study conducted under subsection (a). (c) DEFINITION.-For purposes of this section, the term "S corporation" has the meaning given the term in section 1361(a)(1) of the Internal Revenue Code of 1986. SEC. 722. "PLAIN LANGUAGE” REQUIREMENT FOR FEDERAL BANKING AGENCY RULES. (a) IN GENERAL.-Each Federal banking agency shall use plain language in all proposed and final rulemakings published by the agency in the Federal Register after January 1, 2000. (b) REPORT.-Not later than March 1, 2001, each Federal banking agency shall submit to the Congress a report that describes how the agency has complied with subsection (a). (c) DEFINITION.-For purposes of this section, the term "Federal banking agency" has the meaning given that term in section 3 of the Federal Deposit Insurance Act. SEC. 723. RETENTION OF "FEDERAL" IN NAME OF CONVERTED FEDERAL SAVINGS ASSOCIATION. Section 2 of the Act entitled "An Act to enable national banking associations to increase their capital stock and to change their names or locations", approved May 1, 1886 (12 U.S.C. 30), is amended by adding at the end the following new subsection: "(d) RETENTION OF FEDERAL' IN NAME OF CONVERTED FEDERAL SAVINGS ASSOCIATION. “(1) IN GENERAL.-Notwithstanding subsection (a) or any other provision of law, any depository institution, the charter of which is converted from that of a Federal savings association to a national bank or a State bank after the date of the enactment of the Gramm-Leach-Bliley Act may retain the term 'Federal' in the name of such institution if such institution remains an insured depository institution. “(2) DEFINITIONS.-For purposes of this subsection, the terms 'depository institution', 'insured depository institution', 'national bank', and 'State bank' have the meanings given those terms in section 3 of the Federal Deposit Insurance Act.". SEC. 724. CONTROL OF BANKERS' BANKS. Section 2(a)(5)(E)(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(5)(E)(i)) is amended by inserting "1 or more" before "thrift institutions”. SEC. 725. PROVISION OF TECHNICAL ASSISTANCE TO MICROENTERPRISES. Title I of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4701 et seq.) is amended by adding at the end the following new subtitle: "Subtitle C-Microenterprise Technical Assistance and Capacity Building Program "SEC. 171. SHORT TITLE. "This subtitle may be cited as the 'Program for Investment in Microentrepreneurs Act of 1999', also referred to as the 'PRIME Act'. "SEC. 172. DEFINITIONS. "For purposes of this subtitle, the following definitions shall apply: “(1) ADMINISTRATION.-The term 'Administration' means the Small Business Administration. "(2) ADMINISTRATOR.-The term 'Administrator' means the Administrator of the Small Business Administration. "(3) CAPACITY BUILDING SERVICES.-The term 'capacity building services' means services provided to an organization that is, or that is in the process of becoming, a microenterprise development organization or program, for the purpose of enhancing its ability to provide training and services to disadvantaged entrepreneurs. "(4) COLLABORATIVE.—The term 'collaborative' means 2 or more nonprofit entities that agree to act jointly as a qualified organization under this subtitle. "(5) DISADVANTAGED ENTREPRENEUR.-The term 'disadvantaged entrepreneur' means α microentrepreneur that is "(A) a low-income person; "(B) a very low-income person; or "(C) an entrepreneur that lacks adequate access to capital or other resources essential for business success, or is economically disadvantaged, as determined by the Administrator. "(6) INDIAN TRIBE.-The term 'Indian tribe' has the meaning given the term in section 103. "(7) INTERMEDIARY.-The term 'intermediary' means a private, nonprofit entity that seeks to serve microenterprise development organizations and programs as authorized under section 175. "(8) LOW-INCOME PERSON.-The term 'low-income person' has the meaning given the term in section 103. "(9) MICROENTREPRENEUR.-The term 'microentrepreneur' means the owner or developer of a microenterprise. "(10) MICROENTERPRISE.-The term 'microenterprise' means a sole proprietorship, partnership, or corporation that— "(A) has fewer than 5 employees; and "(B) generally lacks access to conventional loans, equity, or other banking services. "(11) MICROENTERPRISE DEVELOPMENT ORGANIZATION OR PROGRAM.-The term 'microenterprise development organization or program' means a nonprofit entity, or a program administered by such an entity, including community development corporations or other nonprofit development organizations and social service organizations, that provides services to disadvantaged entrepreneurs. "(12) TRAINING AND TECHNICAL ASSISTANCE.The term 'training and technical assistance' means services and support provided to disadvantaged entrepreneurs, such as assistance for the purpose of enhancing business planning, marketing, management, financial management skills, and assistance for the purpose of accessing financial services. "(13) VERY LOW-INCOME PERSON.-The term 'very low-income person' means having an income, adjusted for family size, of not more than 150 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by that section). "SEC. 173. ESTABLISHMENT OF PROGRAM. "The Administrator shall establish a microenterprise technical assistance and capacity building grant program to provide assistance from the Administration in the form of grants to qualified organizations in accordance with this subtitle. "SEC. 174. USES OF ASSISTANCE. "A qualified organization shall use grants made under this subtitle "(1) to provide training and technical assistance to disadvantaged entrepreneurs; "(2) to provide training and capacity building services to microenterprise development organizations and programs and groups of such organizations to assist such organizations and programs in developing microenterprise training and services; "(3) to aid in researching and developing the best practices in the field of microenterprise and technical assistance programs for disadvantaged entrepreneurs; and "(4) for such other activities as the Administrator determines are consistent with the purposes of this subtitle. "SEC. 175. QUALIFIED ORGANIZATIONS. "For purposes of eligibility for assistance under this subtitle, a qualified organization shall be "(1) a nonprofit microenterprise development organization or program (or a group or collaborative thereof) that has a demonstrated record of delivering microenterprise services to disadvantaged entrepreneurs; "(2) an intermediary; "(3) a microenterprise development organization or program that is accountable to a local community, working in conjunction with a State or local government or Indian tribe; or "(4) an Indian tribe acting on its own, if the Indian tribe can certify that no private organi zation or program referred to in this paragraph exists within its jurisdiction. "SEC. 176. ALLOCATION OF ASSISTANCE; SUBGRANTS. "(a) ALLOCATION OF ASSISTANCE.— “(1) IN GENERAL.-The Administrator shall allocate assistance from the Administration under this subtitle to ensure that "(A) activities described in section 174(1) are funded using not less than 75 percent of amounts made available for such assistance; and "(B) activities described in section 174(2) are funded using not less than 15 percent of amounts made available for such assistance. "(2) LIMIT ON INDIVIDUAL ASSISTANCE.-No single person may receive more than 10 percent of the total funds appropriated under this subtitle in a single fiscal year. "(b) TARGETED ASSISTANCE.-The Administrator shall ensure that not less than 50 percent of the grants made under this subtitle are used to benefit very low-income persons, including those residing on Indian reservations. "(c) SUBGRANTS AUTHORIZED.— “(1) IN GENERAL.—A qualified organization receiving assistance under this subtitle may provide grants using that assistance to qualified small and emerging microenterprise organizations and programs, subject to such rules and regulations as the Administrator determines to be appropriate. "(2) LIMIT ON ADMINISTRATIVE EXPENSES.-Not more than 7.5 percent of assistance received by a qualified organization under this subtitle may be used for administrative expenses in connection with the making of subgrants under paragraph (1). "(d) DIVERSITY.-In making grants under this subtitle, the Administrator shall ensure that grant recipients include both large and small microenterprise organizations, serving urban, rural, and Indian tribal communities serving diverse populations. “(e) PROHIBITION ON PREFERENTIAL CONSIDERATION OF CERTAIN SBA PROGRAM PARTICIPANTS.-In making grants under this subtitle, the Administrator shall ensure that any application made by a qualified organization that is a participant in the program established under section 7(m) of the Small Business Act does not receive preferential consideration over applications from other qualified organizations that are not participants in such program. "SEC. 177. MATCHING REQUIREMENTS. "(a) IN GENERAL.-Financial assistance under this subtitle shall be matched with funds from sources other than the Federal Government on the basis of not less than 50 percent of each dollar provided by the Administration. "(b) SOURCES OF MATCHING FUNDS.-Fees, grants, gifts, funds from loan sources, and inkind resources of a grant recipient from public or private sources may be used to comply with the matching requirement in subsection (a). "(c) EXCEPTION. “(1) IN GENERAL.-In the case of an applicant for assistance under this subtitle with severe constraints on available sources of matching funds, the Administrator may reduce or eliminate the matching requirements of subsection (a). “(2) LIMITATION.-Not more than 10 percent of the total funds made available from the Administration in any fiscal year to carry out this subtitle may be excepted from the matching requirements of subsection (a), as authorized by paragraph (1) of this subsection. "SEC. 178. APPLICATIONS FOR ASSISTANCE. "An application for assistance under this subtitle shall be submitted in such form and in accordance with such procedures as the Administrator shall establish. "SEC. 179. RECORDKEEPING. "The requirements of section 115 shall apply to a qualified organization receiving assistance from the Administration under this subtitle as if it were a community development financial in "The Board shall order an annual independent audit of the financial statements of each Federal reserve bank and the Board.". SEC. 727. AUTHORIZATION TO RELEASE REPORTS. (a) FEDERAL RESERVE ACT.-The eighth undesignated paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 326) is amended by striking the last sentence and inserting the following: "The Board of Governors of the Federal Reserve System, at its discretion, may furnish any report of examination or other confidential supervisory information concerning any State member bank or other entity examined under any other authority of the Board, to any Federal or State agency or authority with supervisory or regulatory authority over the examined entity, to any officer, director, or receiver of the examined entity, and to any other person that the Board determines to be proper.”. (b) COMMODITY FUTURES TRADING COMMISSION. The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is amended— (1) in section 1101(7)— (A) by redesignating subparagraphs (G) and (H) as subparagraphs (H) and (I), respectively; and (B) by inserting after subparagraph (F) the following new subparagraph: "(G) the Commodity Futures Trading Commission;"; and (2) in section 1112(e), by striking "and the Securities and Exchange Commission" and inserting", the Securities and Exchange Commission, and the Commodity Futures Trading Commission". SEC. 728. GENERAL ACCOUNTING OFFICE STUDY OF CONFLICTS OF INTEREST. (a) STUDY REQUIRED.-The Comptroller General of the United States shall conduct a study analyzing the conflict of interest faced by the Board of Governors of the Federal Reserve System between its role as a primary regulator of the banking industry and its role as a vendor of services to the banking and financial services industry. (b) SPECIFIC CONFLICT REQUIRED TO BE ADDRESSED.-In the course of the study required under subsection (a), the Comptroller General shall address the conflict of interest faced by the Board of Governors of the Federal Reserve System between the role of the Board as a regulator of the payment system, generally, and its participation in the payment system as a competitor with private entities who are providing payment services. (c) REPORT TO THE CONGRESS.-Before the end of the 1-year period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress containing the findings and conclusions of the Comptroller General in connection with the study required under this section, together with such recommendations for such legislative or administrative actions as the Comptroller General may determine to be be appropriate, including rec ommendations for resolving any such conflict of interest. SEC. 729. STUDY AND REPORT ON ADAPTING EXISTING LEGISLATIVE REQUIREMENTS TO ONLINE BANKING AND LENDING. (a) STUDY REQUIRED.-The Federal banking agencies shall conduct a study of banking regulations regarding the delivery of financial services, including those regulations that may assume that there will be person-to-person contact during the course of a financial services transaction, and report their recommendations on adapting those existing requirements to online banking and lending. (b) REPORT REQUIRED.-Before the end of the 2-year period beginning on the date of the enactment of this Act, the Federal banking agencies shall submit a report to the Congress on the findings and conclusions of the agencies with respect to the study required under subsection (a), together with such recommendations for legislative or regulatory action as the agencies may determine to be appropriate. (c) DEFINITION.-For purposes of this section, the term "Federal banking agencies" means each Federal banking agency (as defined in section 3(2) of the Federal Deposit Insurance Act). SEC. 730. CLARIFICATION OF SOURCE OF STRENGTH DOCTRINE. Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following new subsection: “(t) LIMITATION ON CLAIMS.— “(1) IN GENERAL.-No person may bring a claim against any Federal banking agency (including in its capacity as conservator or receiver) for the return of assets of an affiliate or controlling shareholder of the insured depository institution transferred to, or for the benefit of, an insured depository institution by such affiliate or controlling shareholder of the insured depository institution, or a claim against such Federal banking agency for monetary damages or other legal or equitable relief in connection with such transfer, if at the time of the transfer "(A) the insured depository institution is subject to any direction issued in writing by a Federal banking agency to increase its capital; "(B) the insured depository institution is undercapitalized (as defined in section 38 of this Act); and "(C) for that portion of the transfer that is made by an entity covered by section 5(g) of the Bank Holding Company Act of 1956 or section 45 of this Act, the Federal banking agency has followed the procedure set forth in such section. "(2) DEFINITION OF CLAIM.-For purposes of paragraph (1), the term 'claim’— "(A) means a cause of action based on Federal or State law that "(i) provides for the avoidance of preferential or fraudulent transfers or conveyances; or "(ii) provides similar remedies for preferential or fraudulent transfers or conveyances; and "(B) does not include any claim based on actual intent to hinder, delay, or defraud pursuant to such a fraudulent transfer or conveyance law.". SEC. 731. INTEREST RATES AND OTHER CHARGES (1) by redesignating subsection (f) as subsection (g); and (2) by inserting after subsection (e) the following new subsection: "(f) APPLICABLE RATE AND OTHER CHARGE LIMITATIONS. "(1) IN GENERAL.-In the case of any State that has a constitutional provision that sets a maximum lawful annual percentage rate of interest on any contract at not more than 5 percent above the discount rate for 90-day commercial paper in effect at the Federal reserve bank for the Federal reserve district in which such State is located, except as provided in para graph (2), upon the establishment in such State of a branch of any out-of-State insured depository institution in such State under this section, the maximum interest rate or amount of interest, discount points, finance charges, or other similar charges that may be charged, taken, received, or reserved from time to time in any loan or discount made or upon any note, bill of exchange, financing transaction, or other evidence of debt by any insured depository institution whose home State is such State shall be equal to not more than the greater of— "(A) the maximum interest rate or amount of interest, discount points, finance charges, or other similar charges that may be charged, taken, received, or reserved in a similar transaction under the constitution, statutory, or other laws of the home State of the out-of-State insured depository institution establishing any such branch, without reference to this section, as such maximum interest rate or amount of interest may change from time to time; or "(B) the maximum rate or amount of interest, discount points, finance charges, or other similar charges that may be charged, taken, received, or reserved in a similar transaction by a State insured depository institution chartered under the laws of such State or a national bank or Federal savings association whose main office is located in such State without reference to this section. “(2) RULE OF CONSTRUCTION.-No provision of this subsection shall be construed as superseding or affecting "(A) the authority of any insured depository institution to take, receive, reserve, and charge interest on any loan made in any State other than the State referred to in paragraph (1); or “(B) the applicability of section 501 of the Depository Institutions Deregulation and Monetary Control Act of 1980, section 5197 of the Revised Statutes of the United States, or section 27 of this Act.". SEC. 732. INTERSTATE BRANCHES AND AGENCIES “(7) ADDITIONAL AUTHORITY FOR INTERSTATE BRANCHES AND AGENCIES OF FOREIGN BANKS, UPGRADES OF CERTAIN FOREIGN BANK AGENCIES AND BRANCHES.-Notwithstanding and (2), a foreign bank may paragraphs (1) "(A) with the approval of the Board and the Comptroller of the Currency, establish and operate a Federal branch or Federal agency or, with the approval of the Board and the appropriate State bank supervisor, a State branch or State agency in any State outside the foreign bank's home State if— "(i) the establishment and operation of such branch or agency is permitted by the State in which the branch or agency is to be established; and "(ii) in the case of a Federal or State branch, the branch receives only such deposits as would be permitted for a corporation organized under section 25A of the Federal Reserve Act; or "(B) with the approval of the Board and the relevant licensing authority (the Comptroller in the case of a Federal branch or the appropriate State supervisor in the case of a State branch), upgrade an agency, or a branch of the type referred to in subparagraph (A)(ii), located in a State outside the foreign bank's home State, into a Federal or State branch if— "(i) the establishment and operation of such branch is permitted by such State; and "(ii) such agency or branch “(I) was in operation in such State on the day before September 29, 1994; or "(II) has been in operation in such State for a period of time that meets the State's minimum age requirement permitted under section 44(a)(5) of the Federal Deposit Insurance Act.". SEC. 733. FAIR TREATMENT OF WOMEN BY FINANCIAL ADVISERS. It is the sense of the Congress that individuals offering financial advice and products should offer such services and products in a nondiscriminatory, nongender-specific manner. SEC. 734. MEMBERSHIP OF LOAN GUARANTEE BOARDS. (a) EMERGENCY STEEL LOAN GUARANTEE BOARD.-Section 101(e) of the Emergency Steel Loan Guarantee Act of 1999 is amended (1) in paragraph (2), by inserting ", or a member of the Board of Governors of the Federal Reserve System designated by the Chairman" after "the Chairman of the Board of Governors of the Federal Reserve System"; and (2) in paragraph (3), by inserting ", or a commissioner of the Securities and Exchange Commission designated by the Chairman" before the period. (b) EMERGENCY OIL AND GAS LOAN GUARANTEE BOARD.-Section 201(d)(2) of the Emergency Oil and Gas Guarantee Loan Program Act is amended— (1) in subparagraph (B), by inserting ", or a member of the Board of Governors of the Federal Reserve System designated by the Chairman" after "the Chairman of the Board of Governors of the Federal Reserve System"; and (2) in subparagraph (C), by inserting “, or a commissioner of the Securities and Exchange Commission designated by the Chairman" before the period. SEC. 735. REPEAL OF STOCK LOAN LIMIT IN FEDERAL RESERVE ACT. Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended by striking the paragraph designated as "(m)" and inserting "(m) [Repealed]". SEC. 736. ELIMINATION OF SAIF AND DIF SPECIAL RESERVES. (a) SAIF SPECIAL RESERVE.-Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amended by striking subparagraph (L). (b) DIF SPECIAL RESERVE.-Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is amended (1) by striking subsection (b); and (A) by striking paragraph (4); (B) in paragraph (6)(C)(i), by striking "(6) and (7)" and inserting "(5), (6), and (7)"; and (C) in paragraph (6)(C), by striking clause (ii) and inserting the following: "(ii) by redesignating paragraph (8) as paragraph (5).". (c) EFFECTIVE DATE.-This section and the amendments made by this section shall become effective on the date of the enactment of this Act. SEC. 737. BANK OFFICERS AND DIRECTORS AS OFFICERS AND DIRECTORS OF PUBLIC UTILITIES. Section 305(b) of the Federal Power Act (16 U.S.C. 825d(b)) is amended (1) by striking "(b) After six" and inserting the following: “(b) INTERLOCKING DIRECTORATES.— (2) by adding at the end the following: "(A) IN GENERAL.-In the circumstances described in subparagraph (B), paragraph (1) shall not apply to a person that holds or proposes to hold the positions of— "(i) officer or director of a public utility; and "(ii) officer or director of a bank, trust company, banking association, or firm authorized by law to underwrite or participate in the marketing of securities of a public utility. “(B) CIRCUMSTANCES.-The circumstances described in this subparagraph are that "(i) a person described in subparagraph (A) does not participate in any deliberations or decisions of the public utility regarding the selection of a bank, trust company, banking association, or firm to underwrite or participate in the marketing of securities of the public utility, if the person serves as an officer or director of a bank, trust company, banking association, or firm that is under consideration in the deliberation process; “(ii) the bank, trust company, banking association, or firm of which the person is an officer or director does not engage in the underwriting of, or participate in the marketing of, securities of the public utility of which the person holds the position of officer or director; "(iii) the public utility for which the person serves or proposes to serve as an officer or director selects underwriters by competitive procedures; or "(iv) the issuance of securities the public utility for which the person serves or proposes to serve as an officer or director has been approved by all Federal and State regulatory agencies having jurisdiction over the issuance.". SEC. 738. APPROVAL FOR PURCHASES OF SECURITIES. Section 23B(b)(2) of the Federal Reserve Act (12 U.S.C. 371c-1) is amended to read as follows: "Subparagraph (B) of paragraph (1) shall not apply if the purchase or acquisition of such securities has been approved, before such securities are initially offered for sale to the public, by a majority of the directors of the bank based on a determination that the purchase is a sound investment for the bank irrespective of the fact that an affiliate of the bank is a principal underwriter of the securities.". SEC. 739. OPTIONAL CONVERSION OF FEDERAL SAVINGS ASSOCIATIONS. Section 5(i) of the Home Owners' Loan Act (12 U.S.C. 1464(i)) is amended by adding at the end the following new paragraph: "(5) CONVERSION TO NATIONAL OR STATE BANK. “(A) IN GENERAL.-Any Federal savings association chartered and in operation before the date of the enactment of the Gramm-Leach-Bliley Act, with branches in operation before such date of enactment in 1 or more States, may convert, at its option, with the approval of the Comptroller of the Currency or the appropriate State bank supervisor, into 1 or more national or State banks, each of which may encompass 1 or more of the branches of the Federal savings association in operation before such date of enactment 1 or more States, but only if each resulting national or State bank will meet all financial, management, and capital requirements applicable to the resulting national or State bank. "(B) DEFINITIONS.-For purposes of this paragraph, the terms 'State bank' and 'State bank supervisor' have the meanings given those terms in section 3 of the Federal Deposit Insurance Act.". SEC. 740. GRAND JURY PROCEEDINGS. Section 3322(b) of title 18, United States Code, is amended (1) in paragraph (1), by inserting "Federal or State" before "financial institution"; and (2) in paragraph (2), by inserting "at any time during or after the completion of the investigation of the grand jury,” before “upon”. And the House agree to the same. That the House recede from its amendment to the title of the bill. From the Committee on Banking and Financial Services, for consideration of the Senate bill, and the House amendment, and modifications committed to conference: JAMES A. LEACH, BILL MCCOLLUM, MARGE ROUKEMA, DOUG BEREUTER, RICK LAZIO, SPENCER BACHUS, MICHAEL N. CASTLE, JOHN J. LAFALCE, BRUCE F. VENTO, As additional conferees from the Committee on Banking and Financial Services, for consideration of titles I, III (except section 304), IV, and VII of the Senate bill, and title I of the House amendment, and modifications committed to conference: PAUL E. KANJORSKI, CAROL B. MALONEY, As additional conferees from the Committee on Banking and Financial Services, for consideration of title V of the Senate bill, and title II of the House amendment, and modifications committed to conference: PAUL E. KANJORSKI, CAROL B. MALONEY, JAMES H. MALONEY, As additional conferees from the Committee on Banking and Financial Service, for consideration of title II of the Senate bill, and title III of the House amendment, and modifications committed to conference: PAUL E. KANJORSKI, CAROL B. MALONEY, NYDIA M. VELÁZQUEZ, DARLENE HOOLEY, As additional conferees from the Committee on Banking and Financial Services, for consideration of title VI of the Senate bill, and title IV of the House amendment, and modifications committed to conference: CAROL B. MALONEY, LUIS V. GUTIERREZ, KEN BENTSEN, As additional conferees from the Committee on Banking and Financial Services, for consideration of section 304 of the Senate bill, and title V of the House amendment, and modifications committed to conference: PAUL E. KANJORSKI, GARY L. ACKERMAN, From the Committee on Commerce, for consideration of the Senate bill, and the House amendment, and modifications committed to conference: TOM BLILEY, MICHAEL G. OXLEY, BILLY TAUZIN, PAUL GILLMOR, JAMES GREENWOOD, CHRIS COX, STEVE LARGENT, BRIAN BILBRAY E. TOWNS, DIANA DEGETTE, LOIS CAPPS, Provided that Mr. Rush is appointed in lieu of Mrs. Capps for consideration of section 316 of the Senate bill: BOBBY L. RUSH, From the Committee on Agriculture, for consideration of title V of the House amendment, and modifications committed to conference: LARRY COMBEST, From the Committee on the Judiciary, for consideration of sections 104(a), 104(d)(3), and 104(f)(2) of the Senate bill, and sections 104(a)(3), 104(b)(3)(A), 104(b)(4)(B), 136(b), 136(d)-(e), 141-44, 197, 301, and 306 of the House amendment, and modifications committed to conference: HENRY HYDE, GEORGE W. GEKAS, From the Committee on Banking and Financial Services, for consideration of section 101 of the Senate bill and section 101 of the House amendment: Mr. King is appointed in lieu of Mr. Bachus; Mr. Royce is appointed in lieu of Mr. Castle: PETER T. KING, ED ROYCE, From the Committee on Commerce, for consideration of section 101 of the Senate bill and section 101 of the House amendment: Mrs. Wilson is appointed in lieu of Mr. Largent; Mr. Fossella is appointed in lieu of Mr. Bilbray: HEATHER WILSON, VITO FOSSELLA, Managers on the Part of the House. PHIL GRAMM, CONNIE MACK, ROBERT F. BENNETT, ROD GRAMS, |