HR 478 — Promoting New Bank Formation Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 HOME OWNERS' LOAN ACT

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SEC. 5. FEDERAL SAVINGS ASSOCIATIONS.

 (a) In General.--In order to provide thrift institutions for 
the deposit of funds and for the extension of credit for homes 
and other goods and services, the Comptroller of the Currency 
is authorized, under such regulations as the Comptroller of the 
Currency may prescribe--
 (1) to provide for the organization, incorporation, 
 examination, operation, and regulation of associations 
 to be known as Federal savings associations (including 
 Federal savings banks), and
 (2) to issue charters therefor,
giving primary consideration of the best practices of thrift 
institutions in the United States. The lending and investment 
powers conferred by this section are intended to encourage such 
institutions to provide credit for housing safely and soundly.
 (b) Deposits and Related Powers.--
 (1) Deposit accounts.--
 (A) Subject to the terms of its charter and 
 regulations of the Comptroller of the Currency, 
 a Federal savings association may--
 (i) raise funds through such deposit, 
 share, or other accounts, including 
 demand deposit accounts (hereafter in 
 this section referred to as 
 ``accounts''); and
 (ii) issue passbooks, certificates, 
 or other evidence of accounts.
 (B) A Federal savings association may not 
 permit any overdraft (including an intraday 
 overdraft) on behalf of an affiliate, or incur 
 any such overdraft in such savings 
 association's account at a Federal reserve bank 
 or Federal home loan bank on behalf of an 
 affiliate.
 All savings accounts and demand accounts shall 
 have the same priority upon liquidation. 
 Holders of accounts and obligors of a Federal 
 savings association shall, to such extent as 
 may be provided by its charter or by 
 regulations of the Comptroller of the Currency, 
 be members of the savings association, and 
 shall have such voting rights and such other 
 rights as are thereby provided.
 (C) A Federal savings association may require 
 not less than 14 days notice prior to payment 
 of savings accounts if the charter of the 
 savings association or the regulations of the 
 Comptroller of the Currency so provide.
 (D) If a Federal savings association does not 
 pay all withdrawals in full (subject to the 
 right of the association, where applicable, to 
 require notice), the payment of withdrawals 
 from accounts shall be subject to such rules 
 and procedures as may be prescribed by the 
 savings association's charter or by regulation 
 of the Comptroller of the Currency. Except as 
 authorized in writing by the Comptroller of the 
 Currency, any Federal savings association that 
 fails to make full payment of any withdrawal 
 when due shall be deemed to be in an unsafe or 
 unsound condition.
 (E) Accounts may be subject to check or to 
 withdrawal or transfer on negotiable or 
 transferable or other order or authorization to 
 the Federal savings association, as the 
 Comptroller of the Currency may by regulation 
 provide.
 (F) A Federal savings association may 
 establish remote service units for the purpose 
 of crediting savings or demand accounts, 
 debiting such accounts, crediting payments on 
 loans, and the disposition of related financial 
 transactions, as provided in regulations 
 prescribed by the Comptroller of the Currency.
 (2) Other liabilities.--To such extent as the 
 Comptroller of the Currency may authorize in writing, a 
 Federal savings association may borrow, may give 
 security, may be surety as defined by the Comptroller 
 of the Currency and may issue such notes, bonds, 
 debentures, or other obligations, or other securities, 
 including capital stock.
 (3) Loans from state housing finance agencies.--
 (A) In general.--Subject to regulation by the 
 Comptroller of the Currency but without regard 
 to any other provision of this subsection, any 
 Federal savings association that is in 
 compliance with the capital standards in effect 
 under subsection (t) may borrow funds from a 
 State mortgage finance agency of the State in 
 which the head office of such savings 
 association is situated to the same extent as 
 State law authorizes a savings association 
 organized under the laws of such State to 
 borrow from the State mortgage finance agency.
 (B) Interest rate.--A Federal savings 
 association may not make any loan of funds 
 borrowed under subparagraph (A) at an interest 
 rate which exceeds by more than 1\3/4\ percent 
 per annum the interest rate paid to the State 
 mortgage finance agency on the obligations 
 issued to obtain the funds so borrowed.
 (4) Mutual capital certificates.--In accordance with 
 regulations issued by the Comptroller of the Currency, 
 mutual capital certificates may be issued and sold 
 directly to subscribers or through underwriters. Such 
 certificates may be included in calculating capital for 
 the purpose of subsection (t) to the extent permitted 
 by the Comptroller of the Currency. The issuance of 
 certificates under this paragraph does not constitute a 
 change of control or ownership under this Act or any 
 other law unless there is in fact a change in control 
 or reorganization. Regulations relating to the issuance 
 and sale of mutual capital certificates shall provide 
 that such certificates--
 (A) are subordinate to all savings accounts, 
 savings certificates, and debt obligations;
 (B) constitute a claim in liquidation on the 
 general reserves, surplus, and undivided 
 profits of the Federal savings association 
 remaining after the payment in full of all 
 savings accounts, savings certificates, and 
 debt obligations;
 (C) are entitled to the payment of dividends; 
 and
 (D) may have a fixed or variable dividend 
 rate.
 (c) Loans and Investments.--To the extent specified in 
regulations of the Comptroller, a Federal savings association 
may invest in, sell, or otherwise deal in the following loans 
and other investments:
 (1) Loans or investments without percentage of assets 
 limitation.--Without limitation as a percentage of 
 assets, the following are permitted:
 (A) Account loans.--Loans on the security of 
 its savings accounts and loans specifically 
 related to transaction accounts.
 (B) Residential real property loans.--Loans 
 on the security of liens upon residential real 
 property.
 (C) United states government securities.--
 Investments in obligations of, or fully 
 guaranteed as to principal and interest by, the 
 United States.
 (D) Federal home loan bank and federal 
 national mortgage association securities.--
 Investments in the stock or bonds of a Federal 
 home loan bank or in the stock of the Federal 
 National Mortgage Association.
 (E) Federal home loan mortgage corporation 
 instruments.--Investments in mortgages, 
 obligations, or other securities which are or 
 have been sold by the Federal Home Loan 
 Mortgage Corporation pursuant to section 305 or 
 306 of the Federal Home Loan Mortgage 
 Corporation Act.
 (F) Other government securities.--Investments 
 in obligations, participations, securities, or 
 other instruments issued by, or fully 
 guaranteed as to principal and interest by, the 
 Federal National Mortgage Association, the 
 Student Loan Marketing Association, the 
 Government National Mortgage Association, or 
 any agency of the United States. A savings 
 association may issue and sell securities which 
 are guaranteed pursuant to section 306(g) of 
 the National Housing Act.
 (G) Deposits.--Investments in accounts of any 
 insured depository institution, as defined in 
 section 3 of the Federal Deposit Insurance Act.
 (H) State securities.--Investments in 
 obligations issued by any State or political 
 subdivision thereof (including any agency, 
 corporation, or instrumentality of a State or 
 political subdivision). A Federal savings 
 association may not invest more than 10 percent 
 of its capital in obligations of any one 
 issuer, exclusive of investments in general 
 obligations of any issuer.
 (I) Purchase of insured loans.--Purchase of 
 loans secured by liens on improved real estate 
 which are insured or guaranteed under the 
 National Housing Act, the Servicemen's 
 Readjustment Act of 1944, or chapter 37 of 
 title 38, United States Code.
 (J) Home improvement and manufactured home 
 loans.--Loans made to repair, equip, alter, or 
 improve any residential real property, and 
 loans made for manufactured home financing.
 (K) Insured loans to finance the purchase of 
 fee simple.--Loans insured under section 240 of 
 the National Housing Act.
 (L) Loans to financial institutions, brokers, 
 and dealers.--Loans to--
 (i) financial institutions with 
 respect to which the United States or 
 an agency or instrumentality thereof 
 has any function of examination or 
 supervision, or
 (ii) any broker or dealer registered 
 with the Securities and Exchange 
 Commission,
 which are secured by loans, obligations, or 
 investments in which the Federal savings 
 association has the statutory authority to 
 invest directly.
 (M) Liquidity investments.--Investments 
 (other than equity investments), identified by 
 the Comptroller, for liquidity purposes, 
 including cash, funds on deposit at a Federal 
 reserve bank or a Federal home loan bank, or 
 bankers' acceptances.
 (N) Investment in the national housing 
 partnership corporation, partnerships, and 
 joint ventures.--Investments in shares of stock 
 issued by a corporation authorized to be 
 created pursuant to title IX of the Housing and 
 Urban Development Act of 1968, and investments 
 in any partnership, limited partnership, or 
 joint venture formed pursuant to section 907(a) 
 or 907(c) of such Act.
 (O) Certain hud insured or guaranteed 
 investments.--Loans that are secured by 
 mortgages--
 (i) insured under title X of the 
 National Housing Act, or
 (ii) guaranteed under title IV of the 
 Housing and Urban Development Act of 
 1968, under part B of the National 
 Urban Policy and New Community 
 Development Act of 1970, or under 
 section 802 of the Housing and 
 Community Development Act of 1974.
 (P) State housing corporation investments.--
 Obligations of and loans to any State housing 
 corporation, if--
 (i) such obligations or loans are 
 secured directly, or indirectly through 
 an agent or fiduciary, by a first lien 
 on improved real estate which is 
 insured under the provisions of the 
 National Housing Act, and
 (ii) in the event of default, the 
 holder of the obligations or loans has 
 the right directly, or indirectly 
 through an agent or fiduciary, to cause 
 to be subject to the satisfaction of 
 such obligations or loans the real 
 estate described in the first lien or 
 the insurance proceeds under the 
 National Housing Act.
 (Q) Investment companies.--A Federal savings 
 association may invest in, redeem, or hold 
 shares or certificates issued by any open-end 
 management investment company which--
 (i) is registered with the Securities 
 and Exchange Commission under the 
 Investment Company Act of 1940, and
 (ii) the portfolio of which is 
 restricted by such management company's 
 investment policy (changeable only if 
 authorized by shareholder vote) solely 
 to investments that a Federal savings 
 association by law or regulation may, 
 without limitation as to percentage of 
 assets, invest in, sell, redeem, hold, 
 or otherwise deal in.
 (R) Mortgage-backed securities.--Investments 
 in securities that--
 (i) are offered and sold pursuant to 
 section 4(5) of the Securities Act of 
 1933; or
 (ii) are mortgage related securities 
 (as defined in section 3(a)(41) of the 
 Securities Exchange Act of 1934),
 subject to such regulations as the Comptroller 
 may prescribe, including regulations 
 prescribing minimum size of the issue (at the 
 time of initial distribution) or minimum 
 aggregate sales price, or both.
 (S) Small business related securities.--
 Investments in small business related 
 securities (as defined in section 3(a)(53) of 
 the Securities Exchange Act of 1934), subject 
 to such regulations as the Comptroller may 
 prescribe, including regulations concerning the 
 minimum size of the issue (at the time of the 
 initial distribution), the minimum aggregate 
 sales price, or both.
 (T) Credit card loans.--Loans made through 
 credit cards or credit card accounts.
 (U) Educational loans.--Loans made for the 
 payment of educational expenses.
 (V) Agricultural loans.--Secured or unsecured 
 loans for agricultural purposes.
 (2) Loans or investments limited to a percentage of 
 assets or capital.--The following loans or investments 
 are permitted, but only to the extent specified:
 (A) Commercial and other loans.--Secured or 
 unsecured loans for commercial, corporate, 
 [business, or agricultural] or business 
 purposes. The aggregate amount of loans made 
 under this subparagraph may not exceed 20 
 percent of the total assets of the Federal 
 savings association, and amounts in excess of 
 10 percent of such total assets may be used 
 under this subparagraph only for small business 
 loans, as that term is defined by the 
 Comptroller.
 (B) Nonresidential real property loans.--
 (i) In general.--Loans on the 
 security of liens upon nonresidential 
 real property. Except as provided in 
 clause (ii), the aggregate amount of 
 such loans shall not exceed 400 percent 
 of the Federal savings association's 
 capital, as determined under subsection 
 (t).
 (ii) Exception.--The Comptroller may 
 permit a savings association to exceed 
 the limitation set forth in clause (i) 
 if the Comptroller determines that the 
 increased authority--
 (I) poses no significant risk 
 to the safe and sound operation 
 of the association, and
 (II) is consistent with 
 prudent operating practices.
 (iii) Monitoring.--If the Comptroller 
 permits any increased authority 
 pursuant to clause (ii), the 
 Comptroller shall closely monitor the 
 Federal savings association's condition 
 and lending activities to ensure that 
 the savings association carries out all 
 authority under this paragraph in a 
 safe and sound manner and complies with 
 this subparagraph and all relevant laws 
 and regulations.
 (C) Investments in personal property.--
 Investments in tangible personal property, 
 including vehicles, manufactured homes, 
 machinery, equipment, or furniture, for rental 
 or sale. Investments under this subparagraph 
 may not exceed 10 percent of the assets of the 
 Federal savings association.
 (D) Consumer loans and certain securities.--A 
 Federal savings association may make loans for 
 personal, family, or household purposes, 
 including loans reasonably incident to 
 providing such credit, and may invest in, sell, 
 or hold commercial paper and corporate debt 
 securities, as defined and approved by the 
 Comptroller. Loans and other investments under 
 this subparagraph may not exceed 35 percent of 
 the assets of the Federal savings association, 
 except that amounts in excess of 30 percent of 
 the assets may be invested only in loans which 
 are made by the association directly to the 
 original obligor and with respect to which the 
 association does not pay any finder, referral, 
 or other fee, directly or indirectly, to any 
 third party.
 (3) Loans or investments limited to 5 percent of 
 assets.--The following loans or investments are 
 permitted, but not to exceed 5 percent of assets of a 
 Federal savings association for each subparagraph:
 (A) Community development investments.--
 Investments in real property and obligations 
 secured by liens on real property located 
 within a geographic area or neighborhood 
 receiving concentrated development assistance 
 by a local government under title I of the 
 Housing and Community Development Act of 1974. 
 No investment under this subparagraph in such 
 real property may exceed an aggregate of 2 
 percent of the assets of the Federal savings 
 association.
 (B) Nonconforming loans.--Loans upon the 
 security of or respecting real property or 
 interests therein used for primarily 
 residential or farm purposes that do not comply 
 with the limitations of this subsection.
 (C) Construction loans without security.--
 Loans--
 (i) the principal purpose of which is 
 to provide financing with respect to 
 what is or is expected to become 
 primarily residential real estate; and
 (ii) with respect to which the 
 association--
 (I) relies substantially on 
 the borrower's general credit 
 standing and projected future 
 income for repayment, without 
 other security; or
 (II) relies on other 
 assurances for repayment, 
 including a guarantee or 
 similar obligation of a third 
 party.
 The aggregate amount of such investments shall 
 not exceed the greater of the Federal savings 
 association's capital or 5 percent of its 
 assets.
 (4) Other loans and investments.--The following 
 additional loans and other investments to the extent 
 authorized below:
 (A) Business development credit 
 corporations.--A Federal savings association 
 that is in compliance with the capital 
 standards prescribed under subsection (t) may 
 invest in, lend to, or to commit itself to lend 
 to, any business development credit corporation 
 incorporated in the State in which the home 
 office of the association is located in the 
 same manner and to the same extent as savings 
 associations chartered by such State are 
 authorized. The aggregate amount of such 
 investments, loans, and commitments of any such 
 Federal savings association shall not exceed 
 one-half of 1 percent of the association's 
 total outstanding loans or $250,000, whichever 
 is less.
 (B) Service corporations.--Investments in the 
 capital stock, obligations, or other securities 
 of any corporation organized under the laws of 
 the State in which the Federal savings 
 association's home office is located, if such 
 corporation's entire capital stock is available 
 for purchase only by savings associations of 
 such State and by Federal associations having 
 their home offices in such State. No Federal 
 savings association may make any investment 
 under this subparagraph if the association's 
 aggregate outstanding investment under this 
 subparagraph would exceed 3 percent of the 
 association's assets. Not less than one-half of 
 the investment permitted under this 
 subparagraph which exceeds 1 percent of the 
 association's assets shall be used primarily 
 for community, inner-city, and community 
 development purposes.
 (C) Foreign assistance investments.--
 Investments in housing project loans having the 
 benefit of any guaranty under section 221 of 
 the Foreign Assistance Act of 1961 or loans 
 having the benefit of any guarantee under 
 section 224 of such Act, or any commitment or 
 agreement with respect to such loans made 
 pursuant to either of such sections and in the 
 share capital and capital reserve of the Inter-
 American Savings and Loan Bank. This authority 
 extends to the acquisition, holding, and 
 disposition of loans guaranteed under section 
 221 or 222 of such Act. Investments under this 
 subparagraph shall not exceed 1 percent of the 
 Federal savings association's assets.
 (D) Small business investment companies.--A 
 Federal savings association may invest in 
 stock, obligations, or other securities of any 
 small business investment company formed 
 pursuant to section 301(d) of the Small 
 Business Investment Act of 1958 for the purpose 
 of aiding members of a Federal home loan bank. 
 A Federal savings association may not make any 
 investment under this subparagraph if its 
 aggregate outstanding investment under this 
 subparagraph would exceed 1 percent of the 
 assets of such savings association.
 (E) Bankers' banks.--A Federal savings 
 association may purchase for its own account 
 shares of stock of a bankers' bank, described 
 in Paragraph Seventh of section 5136 of the 
 Revised Statutes or in section 5169(b) of the 
 Revised Statutes, on the same terms and 
 conditions as a national bank may purchase such 
 shares.
 (F) New markets venture capital companies.--A 
 Federal savings association may invest in 
 stock, obligations, or other securities of any 
 New Markets Venture Capital company as defined 
 in section 351 of the Small Business Investment 
 Act of 1958, except that a Federal savings 
 association may not make any investment under 
 this subparagraph if its aggregate outstanding 
 investment under this subparagraph would exceed 
 5 percent of the capital and surplus of such 
 savings association.
 (5) Transition rule for savings associations 
 acquiring banks.--
 (A) In general.--If, under section 5(d)(3) of 
 the Federal Deposit Insurance Act, a savings 
 association acquires all or substantially all 
 of the assets of a bank, the appropriate 
 Federal banking agency may permit the savings 
 association to retain any such asset during the 
 2-year period beginning on the date of the 
 acquisition.
 (B) Extension.--The appropriate Federal 
 banking agency may extend the 2-year period 
 described in subparagraph (A) for not more than 
 1 year at a time and not more than 2 years in 
 the aggregate, if the appropriate Federal 
 banking agency determines that the extension is 
 consistent with the purposes of this Act.
 (6) Definitions.--For purposes of this subsection, 
 the following definitions shall apply:
 (A) Residential property.--The terms 
 ``residential real property'' or ``residential 
 real estate'' mean leaseholds, homes (including 
 condominiums and cooperatives, except that in 
 connection with loans on individual cooperative 
 units, such loans shall be adequately secured 
 as defined by the Comptroller) and, 
 combinations of homes or dwelling units and 
 business property, involving only minor or 
 incidental business use, or property to be 
 improved by construction of such structures.
 (B) Loans.--The term ``loans'' includes 
 obligations and extensions or advances of 
 credit; and any reference to a loan or 
 investment includes an interest in such a loan 
 or investment.
 (d) Regulatory Authority.--
 (1) In general.--
 (A) Enforcement.--The appropriate Federal 
 banking agency shall have power to enforce this 
 section, section 8 of the Federal Deposit 
 Insurance Act, and regulations prescribed 
 hereunder. In enforcing any provision of this 
 section, regulations prescribed under this 
 section, or any other law or regulation, or in 
 any other action, suit, or proceeding to which 
 the appropriate Federal banking agency is a 
 party or in which the appropriate Federal 
 banking agency is interested, and in the 
 administration of conservatorships and 
 receiverships, the appropriate Federal banking 
 agency may act in the name of the appropriate 
 Federal banking agency and through the 
 attorneys of the appropriate Federal banking 
 agency. Except as otherwise provided, the 
 Comptroller shall be subject to suit (other 
 than suits on claims for money damages) by any 
 Federal savings association or director or 
 officer thereof with respect to any matter 
 under this section or any other applicable law, 
 or regulation thereunder, in the United States 
 district court for the judicial district in 
 which the savings association's home office is 
 located, or in the United States District Court 
 for the District of Columbia, and the 
 Comptroller may be served with process in the 
 manner prescribed by the Federal Rules of Civil 
 Procedure.
 (B) Ancillary provisions.--(i) In making 
 examinations of savings associations, examiners 
 appointed by the appropriate Federal banking 
 agency shall have power to make such 
 examinations of the affairs of all affiliates 
 of such savings associations as shall be 
 necessary to disclose fully the relations 
 between such savings associations and their 
 affiliates and the effect of such relations 
 upon such savings associations. For purposes of 
 this subsection, the term ``affiliate'' has the 
 same meaning as in section 2(b) of the Banking 
 Act of 1933, except that the term ``member 
 bank'' in section 2(b) shall be deemed to refer 
 to a savings association.
 (ii) In the course of any examination of any 
 savings association, upon request by the 
 appropriate Federal banking agency, prompt and 
 complete access shall be given to all savings 
 association officers, directors, employees, and 
 agents, and to all relevant books, records, or 
 documents of any type.
 (iii) Upon request made in the course of 
 supervision or oversight of any savings 
 association, for the purpose of acting on any 
 application or determining the condition of any 
 savings association, including whether 
 operations are being conducted safely, soundly, 
 or in compliance with charters, laws, 
 regulations, directives, written agreements, or 
 conditions imposed in writing in connection 
 with the granting of an application or other 
 request, the appropriate Federal banking agency 
 shall be given prompt and complete access to 
 all savings association officers, directors, 
 employees, and agents, and to all relevant 
 books, records, or documents of any type.
 (iv) If prompt and complete access upon 
 request is not given as required in this 
 subsection, the appropriate Federal banking 
 agency may apply to the United States district 
 court for the judicial district (or the United 
 States court in any territory) in which the 
 principal office of the institution is located, 
 or in which the person denying such access 
 resides or carries on business, for an order 
 requiring that such information be promptly 
 provided.
 (v) In connection with examinations of 
 savings associations and affiliates thereof, 
 the appropriate Federal banking agency may--
 (I) administer oaths and affirmations 
 and examine and to take and preserve 
 testimony under oath as to any matter 
 in respect of the affairs or ownership 
 of any such savings association or 
 affiliate, and
 (II) issue subpoenas and, for the 
 enforcement thereof, apply to the 
 United States district court for the 
 judicial district (or the United States 
 court in any territory) in which the 
 principal office of the savings 
 association or affiliate is located, or 
 in which the witness resides or carries 
 on business.
 Such courts shall have jurisdiction and power 
 to order and require compliance with any such 
 subpoena.
 (vi) In any proceeding under this section, 
 the appropriate Federal banking agency may 
 administer oaths and affirmations, take 
 depositions, and issue subpenas. The 
 Comptroller may prescribe regulations with 
 respect to any such proceedings. The attendance 
 of witnesses and the production of documents 
 provided for in this subsection may be required 
 from any place in any State or in any territory 
 at any designated place where such proceeding 
 is being conducted.
 (vii) Any party to a proceeding under this 
 section may apply to the United States District 
 Court for the District of Columbia, or the 
 United States district court for the judicial 
 district (or the United States court in any 
 territory) in which such proceeding is being 
 conducted, or where the witness resides or 
 carries on business, for enforcement of any 
 subpoena issued pursuant to this subsection or 
 section 10(c) of the Federal Deposit Insurance 
 Act, and such courts shall have jurisdiction 
 and power to order and require compliance 
 therewith. Witnesses subpoenaed under this 
 section shall be paid the same fees and mileage 
 that are paid witnesses in the district courts 
 of the United States. All expenses of the 
 appropriate Federal banking agency in 
 connection with this section shall be 
 considered as nonadministrative expenses. Any 
 court having jurisdiction of any proceeding 
 instituted under this section by a savings 
 association, or a director or officer thereof, 
 may allow to any such party reasonable expenses 
 and attorneys' fees. Such expenses and fees 
 shall be paid by the savings association.
 (2) Conservatorships and receiverships.--
 (A) Grounds for appointing conservator or 
 receiver for insured savings association.--The 
 appropriate Federal banking agency may appoint 
 a conservator or receiver for an insured 
 savings association if the appropriate Federal 
 banking agency determines, in the discretion of 
 the appropriate Federal banking agency, that 1 
 or more of the grounds specified in section 
 11(c)(5) of the Federal Deposit Insurance Act 
 exists.
 (B) Power of appointment; judicial review.--
 The appropriate Federal banking agency shall 
 have exclusive power and jurisdiction to 
 appoint a conservator or receiver for a Federal 
 savings association. If, in the opinion of the 
 appropriate Federal banking agency, a ground 
 for the appointment of a conservator or 
 receiver for a savings association exists, the 
 appropriate Federal banking agency is 
 authorized to appoint ex parte and without 
 notice a conservator or receiver for the 
 savings association. In the event of such 
 appointment, the association may, within 30 
 days thereafter, bring an action in the United 
 States district court for the judicial district 
 in which the home office of such association is 
 located, or in the United States District Court 
 for the District of Columbia, for an order 
 requiring the appropriate Federal banking 
 agency to remove such conservator or receiver, 
 and the court shall upon the merits dismiss 
 such action or direct the appropriate Federal 
 banking agency to remove such conservator or 
 receiver. Upon the commencement of such an 
 action, the court having jurisdiction of any 
 other action or proceeding authorized under 
 this subsection to which the association is a 
 party shall stay such action or proceeding 
 during the pendency of the action for removal 
 of the conservator or receiver.
 (C) Replacement.--The appropriate Federal 
 banking agency may, without any prior notice, 
 hearing, or other action, replace a conservator 
 with another conservator or with a receiver, 
 but such replacement shall not affect any right 
 which the association may have to obtain 
 judicial review of the original appointment, 
 except that any removal under this subparagraph 
 shall be removal of the conservator or receiver 
 in office at the time of such removal.
 (D) Court action.--Except as otherwise 
 provided in this subsection, no court may take 
 any action for or toward the removal of any 
 conservator or receiver or, except at the 
 request of the appropriate Federal banking 
 agency, to restrain or affect the exercise of 
 powers or functions of a conservator or 
 receiver.
 (E) Powers.--
 (i) In general.--A conservator shall 
 have all the powers of the members, the 
 stockholders, the directors, and the 
 officers of the association and shall 
 be authorized to operate the 
 association in its own name or to 
 conserve its assets in the manner and 
 to the extent authorized by the 
 appropriate Federal banking agency.
 (ii) FDIC as conservator or 
 receiver.--Except as provided in 
 section 21A of the Federal Home Loan 
 Bank Act, the appropriate Federal 
 banking agency, at the Director's 
 discretion, may appoint the Federal 
 Deposit Insurance Corporation as 
 conservator for a savings association. 
 The appropriate Federal banking agency 
 shall appoint only the Federal Deposit 
 Insurance Corporation as receiver for a 
 savings association for the purpose of 
 liquidation or winding up the affairs 
 of such savings association. The 
 conservator or receiver so appointed 
 shall, as such, have power to buy at 
 its own sale. The Federal Deposit 
 Insurance Corporation, as such 
 conservator or receiver, shall have all 
 the powers of a conservator or 
 receiver, as appropriate, granted under 
 the Federal Deposit Insurance Act, and 
 (when not inconsistent therewith) any 
 other rights, powers, and privileges 
 possessed by conservators or receivers, 
 as appropriate, of savings associations 
 under this Act and any other provisions 
 of law.
 (F) Disclosure requirement for those acting 
 on behalf of conservator.--A conservator shall 
 require that any independent contractor, 
 consultant, or counsel employed by the 
 conservator in connection with the 
 conservatorship of a savings association 
 pursuant to this section shall fully disclose 
 to all parties with which such contractor, 
 consultant, or counsel is negotiating, any 
 limitation on the authority of such contractor, 
 consultant, or counsel to make legally binding 
 representations on behalf of the conservator.
 (3) Regulations.--
 (A) In general.--The Comptroller may 
 prescribe regulations for the reorganization, 
 consolidation, liquidation, and dissolution of 
 savings associations, for the merger of insured 
 savings associations with insured savings 
 associations, for savings associations in 
 conservatorship and receivership, and for the 
 conduct of conservatorships and receiverships. 
 The Comptroller may, by regulation or 
 otherwise, provide for the exercise of 
 functions by members, stockholders, directors, 
 or officers of a savings association during 
 conservatorship and receivership.
 (B) FDIC as conservator or receiver.--In any 
 case where the Federal Deposit Insurance 
 Corporation is the conservator or receiver, any 
 regulations prescribed by the Comptroller shall 
 be consistent with any regulations prescribed 
 by the Federal Deposit Insurance Corporation 
 pursuant to the Federal Deposit Insurance Act.
 (4) Refusal to comply with demand.--Whenever a 
 conservator or receiver appointed by the appropriate 
 Federal banking agency demands possession of the 
 property, business, and assets of any savings 
 association, or of any part thereof, the refusal by any 
 director, officer, employee, or agent of such 
 association to comply with the demand shall be 
 punishable by a fine of not more than $5,000 or 
 imprisonment for not more than one year, or both.
 (5) Definitions.--As used in this subsection, the 
 term ``savings association'' includes any savings 
 association or former savings association that retains 
 deposits insured by the Corporation, notwithstanding 
 termination of its status as an institution insured by 
 the Corporation.
 (6) Compliance with monetary transaction 
 recordkeeping and report requirements.--
 (A) Compliance procedures required.--The 
 Comptroller shall prescribe regulations 
 requiring savings associations to establish and 
 maintain procedures reasonably designed to 
 assure and monitor the compliance of such 
 associations with the requirements of 
 subchapter II of chapter 53 of title 31, United 
 States Code.
 (B) Examinations of savings associations to 
 include review of compliance procedures.--
 (i) In general.--Each examination of 
 a savings association by the 
 appropriate Federal banking agency 
 shall include a review of the 
 procedures required to be established 
 and maintained under subparagraph (A).
 (ii) Exam report requirement.--The 
 report of examination shall describe 
 any problem with the procedures 
 maintained by the association.
 (C) Order to comply with requirements.--If 
 the appropriate Federal banking agency 
 determines that a savings association--
 (i) has failed to establish and 
 maintain the procedures described in 
 subparagraph (A); or
 (ii) has failed to correct any 
 problem with the procedures maintained 
 by such association which was 
 previously reported to the association 
 by the appropriate Federal banking 
 agency,
 the appropriate Federal banking agency shall 
 issue an order under section 8 of the Federal 
 Deposit Insurance Act requiring such 
 association to cease and desist from its 
 violation of this paragraph or regulations 
 prescribed under this paragraph.
 (7) Regulation and examination of savings association 
 service companies, subsidiaries, and service 
 providers.--
 (A) General examination and regulatory 
 authority.--A service company or subsidiary 
 that is owned in whole or in part by a savings 
 association shall be subject to examination and 
 regulation by the appropriate Federal banking 
 agency to the same extent as that savings 
 association.
 (B) Examination by other banking agencies.--
 The appropriate Federal banking agency may 
 authorize any other Federal banking agency that 
 supervises any other owner of part of the 
 service company or subsidiary to perform an 
 examination described in subparagraph (A).
 (C) Applicability of section 8 of the federal 
 deposit insurance act.--A service company or 
 subsidiary that is owned in whole or in part by 
 a saving association shall be subject to the 
 provisions of section 8 of the Federal Deposit 
 Insurance Act as if the service company or 
 subsidiary were an insured depository 
 institution. In any such case, the Federal 
 Deposit Insurance Corporation or the 
 Comptroller, as appropriate, shall be deemed to 
 be the appropriate Federal banking agency, 
 pursuant to section 3(q) of the Federal Deposit 
 Insurance Act.
 (D) Service performed by contract or 
 otherwise.--Notwithstanding subparagraph (A), 
 if a savings association, a subsidiary thereof, 
 or any savings and loan affiliate or entity, as 
 identified by section 8(b)(9) of the Federal 
 Deposit Insurance Act, that is regularly 
 examined or subject to examination by the 
 appropriate Federal banking agency, causes to 
 be performed for itself, by contract or 
 otherwise, any service authorized under this 
 Act or, in the case of a State savings 
 association, any applicable State law, whether 
 on or off its premises--
 (i) such performance shall be subject 
 to regulation and examination by the 
 appropriate Federal banking agency to 
 the same extent as if such services 
 were being performed by the savings 
 association on its own premises; and
 (ii) the savings association shall 
 notify the appropriate Federal banking 
 agency of the existence of the service 
 relationship not later than 30 days 
 after the earlier of--
 (I) the date on which the 
 contract is entered into; or
 (II) the date on which the 
 performance of the service is 
 initiated.
 (E) Administration by the comptroller and the 
 corporation.--The Comptroller may issue such 
 regulations, and the appropriate Federal 
 banking agency may issue such orders, including 
 those issued pursuant to section 8 of the 
 Federal Deposit Insurance Act, as may be 
 necessary to administer and carry out this 
 paragraph and to prevent evasion of this 
 paragraph.
 (8) Definitions.--For purposes of this section--
 (A) the term ``service company'' means--
 (i) any corporation--
 (I) that is organized to 
 perform services authorized by 
 this Act or, in the case of a 
 corporation owned in part by a 
 State savings association, 
 authorized by applicable State 
 law; and
 (II) all of the capital stock 
 of which is owned by 1 or more 
 insured savings associations; 
 and
 (ii) any limited liability company--
 (I) that is organized to 
 perform services authorized by 
 this Act or, in the case of a 
 company, 1 of the members of 
 which is a State savings 
 association, authorized by 
 applicable State law; and
 (II) all of the members of 
 which are 1 or more insured 
 savings associations;
 (B) the term ``limited liability company'' 
 means any company, partnership, trust, or 
 similar business entity organized under the law 
 of a State (as defined in section 3 of the 
 Federal Deposit Insurance Act) that provides 
 that a member or manager of such company is not 
 personally liable for a debt, obligation, or 
 liability of the company solely by reason of 
 being, or acting as, a member or manager of 
 such company; and
 (C) the terms ``State savings association'' 
 and ``subsidiary'' have the same meanings as in 
 section 3 of the Federal Deposit Insurance Act.
 (e) Character and Responsibility.--A charter may be granted 
only--
 (1) to persons of good character and responsibility,
 (2) if in the judgment of the Comptroller a necessity 
 exists for such an institution in the community to be 
 served,
 (3) if there is a reasonable probability of its 
 usefulness and success, and
 (4) if the association can be established without 
 undue injury to properly conducted existing local 
 thrift and home financing institutions.
 (f) Federal Home Loan Bank Membership.--After the end of the 
6-month period beginning on the date of the enactment of the 
Federal Home Loan Bank System Modernization Act of 1999, a 
Federal savings association may become a member of the Federal 
Home Loan Bank System, and shall qualify for such membership in 
the manner provided by the Federal Home Loan Bank Act.
 (h) Discriminatory State and Local Taxation Prohibited.--No 
State, county, municipal, or local taxing authority may impose 
any tax on Federal savings associations or their franchise, 
capital, reserves, surplus, loans, or income greater than that 
imposed by such authority on other similar local mutual or 
cooperative thrift and home financing institutions.
 (i) Conversions.--
 (1) In general.--Any savings association which is, or 
 is eligible to become, a member of a Federal home loan 
 bank may convert into a Federal savings association 
 (and in so doing may change directly from the mutual 
 form to the stock form, or from the stock form to the 
 mutual form). Such conversion shall be subject to such 
 regulations as the Comptroller shall prescribe. 
 Thereafter such Federal savings association shall be 
 entitled to all the benefits of this section and shall 
 be subject to examination and regulation to the same 
 extent as other associations incorporated pursuant to 
 this Act.
 (2) Authority of Comptroller.--(A) No savings 
 association may convert from the mutual to the stock 
 form, or from the stock form to the mutual form, except 
 in accordance with the regulations of the Comptroller.
 (B) Any aggrieved person may obtain review of a final 
 action of the Comptroller which approves or disapproves 
 a plan of conversion pursuant to this subsection only 
 by complying with the provisions of section 10(j) of 
 this Act within the time limit and in the manner 
 therein prescribed, which provisions shall apply in all 
 respects as if such final action were an order the 
 review of which is therein provided for, except that 
 such time limit shall commence upon publication of 
 notice of such final action in the Federal Register or 
 upon the giving of such general notice of such final 
 action as is required by or approved under regulations 
 of the Comptroller, whichever is later.
 (C) Any Federal savings association may change its 
 designation from a Federal savings association to a 
 Federal savings bank, or the reverse.
 (3) Conversion to state association.--(A) Any Federal 
 savings association may convert itself into a savings 
 association or savings bank organized pursuant to the 
 laws of the State in which the principal office of such 
 Federal savings association is located if--
 (i) the State permits the conversion of any 
 savings association or savings bank of such 
 State into a Federal savings association;
 (ii) such conversion of a Federal savings 
 association into such a State savings 
 association is determined--
 (I) upon the vote in favor of such 
 conversion cast in person or by proxy 
 at a special meeting of members or 
 stockholders called to consider such 
 action, specified by the law of the 
 State in which the home office of the 
 Federal savings association is located, 
 as required by such law for a State-
 chartered institution to convert itself 
 into a Federal savings association, but 
 in no event upon a vote of less than 51 
 percent of all the votes cast at such 
 meeting, and
 (II) upon compliance with other 
 requirements reciprocally equivalent to 
 the requirements of such State law for 
 the conversion of a State-chartered 
 institution into a Federal savings 
 association;
 (iii) notice of the meeting to vote on 
 conversion shall be given as herein provided 
 and no other notice thereof shall be necessary; 
 the notice shall expressly state that such 
 meeting is called to vote thereon, as well as 
 the time and place thereof; and such notice 
 shall be mailed, postage prepaid, at least 30 
 and not more than 60 days prior to the date of 
 the meeting, to the Comptroller and to each 
 member or stockholder of record of the Federal 
 savings association at the member's or 
 stockholder's last address as shown on the 
 books of the Federal savings association;
 (iv) when a mutual savings association is 
 dissolved after conversion, the members or 
 shareholders of the savings association will 
 share on a mutual basis in the assets of the 
 association in exact proportion to their 
 relative share or account credits;
 (v) when a stock savings association is 
 dissolved after conversion, the stockholders 
 will share on an equitable basis in the assets 
 of the association; and
 (vi) such conversion shall be effective upon 
 the date that all the provisions of this Act 
 shall have been fully complied with and upon 
 the issuance of a new charter by the State 
 wherein the savings association is located.
 (B)(i) The act of conversion constitutes consent by 
 the institution to be bound by all the requirements 
 that the Comptroller may impose under this Act.
 (ii) The savings association shall upon conversion 
 and thereafter be authorized to issue securities in any 
 form currently approved at the time of issue by the 
 Comptroller for issuance by similar savings 
 associations in such State.
 (iii) If the insurance of accounts is terminated in 
 connection with such conversion, the notice and other 
 action shall be taken as provided by law and 
 regulations for the termination of insurance of 
 accounts.
 (4) Savings bank activities.--(A) To the extent 
 authorized by the Comptroller, but subject to section 
 18(m)(3) of the Federal Deposit Insurance Act--
 (i) any Federal savings bank chartered as 
 such prior to October 15, 1982, may continue to 
 make any investment or engage in any activity 
 not otherwise authorized under this section, to 
 the degree it was permitted to do so as a 
 Federal savings bank prior to October 15, 1982; 
 and
 (ii) any Federal savings bank in existence on 
 the date of the enactment of the Financial 
 Institutions Reform, Recovery, and Enforcement 
 Act of 1989 and formerly organized as a mutual 
 savings bank under State law may continue to 
 make any investment or engage in any activity 
 not otherwise authorized under this section, to 
 the degree it was authorized to do so as a 
 mutual savings bank under State law.
 (B) The authority conferred by this paragraph may be 
 utilized by any Federal savings association that 
 acquires, by merger or consolidation, a Federal savings 
 bank enjoying grandfather rights hereunder.
 (5) Conversion to national or state bank.--
 (A) In general.--Any Federal savings 
 association chartered and in operation before 
 the date of 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 for each national bank, and 
 with the approval of the appropriate State bank 
 supervisor and the appropriate Federal banking 
 agency for each State bank, 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 in 1 or more States 
 subject to subparagraph (B).
 (B) Conditions of conversion.--The authority 
 in subparagraph (A) shall apply only if each 
 resulting national or State bank--
 (i) will meet all financial, 
 management, and capital requirements 
 applicable to the resulting national or 
 State bank; and
 (ii) if more than 1 national or State 
 bank results from a conversion under 
 this subparagraph, has received 
 approval from the Federal Deposit 
 Insurance Corporation under section 
 5(a) of the Federal Deposit Insurance 
 Act.
 (C) No merger application under fdia 
 required.--No application under section 18(c) 
 of the Federal Deposit Insurance Act shall be 
 required for a conversion under this paragraph.
 (D) Definitions.--For purposes of this 
 paragraph, the terms ``State bank'' and ``State 
 bank supervisor'' have the same meanings as in 
 section 3 of the Federal Deposit Insurance Act.
 (6) Limitation on certain conversions by federal 
 savings associations.--A Federal savings association 
 may not convert to a State bank or State savings 
 association during any period in which the Federal 
 savings association is subject to a cease and desist 
 order (or other formal enforcement order) issued by, or 
 a memorandum of understanding entered into with, the 
 Office of Thrift Supervision or the Comptroller of the 
 Currency with respect to a significant supervisory 
 matter.
 (k) Depository of Public Money.--When designated for that 
purpose by the Secretary of the Treasury, a savings association 
the deposits of which are insured by the Corporation shall be a 
depository of public money and may be employed as fiscal agent 
of the Government under such regulations as may be prescribed 
by the Secretary and shall perform all such reasonable duties 
as fiscal agent of the Government as may be required of it. A 
savings association the deposits of which are insured by the 
Corporation may act as agent for any other instrumentality of 
the United States when designated for that purpose by such 
instrumentality, including services in connection with the 
collection of taxes and other obligations owed the United 
States, and the Secretary of the Treasury may deposit public 
money in any such savings association, and shall prescribe such 
regulations as may be necessary to carry out the purposes of 
this subsection.
 (l) Retirement Accounts.--A Federal savings association is 
authorized to act as trustee of any trust created or organized 
in the United States and forming part of a stock bonus, 
pension, or profit-sharing plan which qualifies or qualified 
for specific tax treatment under section 401(d) of the Internal 
Revenue Code of 1986 and to act as trustee or custodian of an 
individual retirement account within the meaning of section 408 
of such Code if the funds of such trust or account are invested 
only in savings accounts or deposits in such Federal savings 
association or in obligations or securities issued by such 
Federal savings association. All funds held in such fiduciary 
capacity by any Federal savings association may be commingled 
for appropriate purposes of investment, but individual records 
shall be kept by the fiduciary for each participant and shall 
show in proper detail all transactions engaged in under this 
paragraph.
 (m) Branching.--
 (1) In general.--
 (A) No savings association incorporated under 
 the laws of the District of Columbia or 
 organized in the District or doing business in 
 the District shall establish any branch or move 
 its principal office or any branch without the 
 Director's prior written approval.
 (B) No savings association shall establish 
 any branch in the District of Columbia or move 
 its principal office or any branch in the 
 District without the Director's prior written 
 approval.
 (2) Definition.--For purposes of this subsection the 
 term ``branch'' means any office, place of business, or 
 facility, other than the principal office as defined by 
 the Comptroller, of a savings association at which 
 accounts are opened or payments are received or 
 withdrawals are made, or any other office, place of 
 business, or facility of a savings association defined 
 by the Comptroller as a branch within the meaning of 
 such sentence.
 (n) Trusts.--
 (1) Permits.--The Comptroller may grant by special 
 permit to a Federal savings association applying 
 therefor the right to act as trustee, executor, 
 administrator, guardian, or in any other fiduciary 
 capacity in which State banks, trust companies, or 
 other corporations which compete with Federal savings 
 associations are permitted to act under the laws of the 
 State in which the Federal savings association is 
 located. Subject to the regulations of the Comptroller, 
 service corporations may invest in State or federally 
 chartered corporations which are located in the State 
 in which the home office of the Federal savings 
 association is located and which are engaged in trust 
 activities.
 (2) Segregation of assets.--A Federal savings 
 association exercising any or all of the powers 
 enumerated in this section shall segregate all assets 
 held in any fiduciary capacity from the general assets 
 of the association and shall keep a separate set of 
 books and records showing in proper detail all 
 transactions engaged in under this subsection. The 
 State banking authority involved may have access to 
 reports of examination made by the Comptroller insofar 
 as such reports relate to the trust department of such 
 association but nothing in this subsection shall be 
 construed as authorizing such State banking authority 
 to examine the books, records, and assets of such 
 associations.
 (3) Prohibitions.--No Federal savings association 
 shall receive in its trust department deposits of 
 current funds subject to check or the deposit of 
 checks, drafts, bills of exchange, or other items for 
 collection or exchange purposes. Funds deposited or 
 held in trust by the association awaiting investment 
 shall be carried in a separate account and shall not be 
 used by the association in the conduct of its business 
 unless it shall first set aside in the trust department 
 United States bonds or other securities approved by the 
 Comptroller.
 (4) Separate lien.--In the event of the failure of a 
 Federal savings association, the owners of the funds 
 held in trust for investment shall have a lien on the 
 bonds or other securities so set apart in addition to 
 their claim against the estate of the association.
 (5) Deposits.--Whenever the laws of a State require 
 corporations acting in a fiduciary capacity to deposit 
 securities with the State authorities for the 
 protection of private or court trusts, Federal savings 
 associations so acting shall be required to make 
 similar deposits. Securities so deposited shall be held 
 for the protection of private or court trusts, as 
 provided by the State law. Federal savings associations 
 in such cases shall not be required to execute the bond 
 usually required of individuals if State corporations 
 under similar circumstances are exempt from this 
 requirement. Federal savings associations shall have 
 power to execute such bond when so required by the laws 
 of the State involved.
 (6) Oaths and affidavits.--In any case in which the 
 laws of a State require that a corporation acting as 
 trustee, executor, administrator, or in any capacity 
 specified in this section, shall take an oath or make 
 an affidavit, the president, vice president, cashier, 
 or trust officer of such association may take the 
 necessary oath or execute the necessary affidavit.
 (7) Certain loans prohibited.--It shall be unlawful 
 for any Federal savings association to lend any 
 officer, director, or employee any funds held in trust 
 under the powers conferred by this section. Any 
 officer, director, or employee making such loan, or to 
 whom such loan is made, may be fined not more than 
 $50,000 or twice the amount of that person's gain from 
 the loan, whichever is greater, or may be imprisoned 
 not more than 5 years, or may be both fined and 
 imprisoned, in the discretion of the court.
 (8) Factors to be considered.--In reviewing 
 applications for permission to exercise the powers 
 enumerated in this section, the Comptroller may 
 consider--
 (A) the amount of capital of the applying 
 Federal savings association,
 (B) whether or not such capital is sufficient 
 under the circumstances of the case,
 (C) the needs of the community to be served, 
 and
 (D) any other facts and circumstances that 
 seem to it proper.
 The Comptroller may grant or refuse the application 
 accordingly, except that no permit shall be issued to 
 any association having capital less than the capital 
 required by State law of State banks, trust companies, 
 and corporations exercising such powers.
 (9) Surrender of charter.--(A) Any Federal savings 
 association may surrender its right to exercise the 
 powers granted under this subsection, and have returned 
 to it any securities which it may have deposited with 
 the State authorities, by filing with the Comptroller a 
 certified copy of a resolution of its board of 
 directors indicating its intention to surrender its 
 right.
 (B) Upon receipt of such resolution, the Comptroller, 
 if satisfied that such Federal savings association has 
 been relieved in accordance with State law of all 
 duties as trustee, executor, administrator, guardian or 
 other fiduciary, may in the Director's discretion, 
 issue to such association a certificate that such 
 association is no longer authorized to exercise the 
 powers granted by this subsection.
 (C) Upon the issuance of such a certificate by the 
 Comptroller, such Federal savings association (i) shall 
 no longer be subject to the provisions of this section 
 or the regulations of the Comptroller made pursuant 
 thereto, (ii) shall be entitled to have returned to it 
 any securities which it may have deposited with State 
 authorities, and (iii) shall not exercise thereafter 
 any of the powers granted by this section without first 
 applying for and obtaining a new permit to exercise 
 such powers pursuant to the provisions of this section.
 (D) The Comptroller may prescribe regulations 
 necessary to enforce compliance with the provisions of 
 this subsection.
 (10) Revocation.--(A) In addition to the authority 
 conferred by other law, if, in the opinion of the 
 Comptroller, a Federal savings association is 
 unlawfully or unsoundly exercising, or has unlawfully 
 or unsoundly exercised, or has failed for a period of 5 
 consecutive years to exercise, the powers granted by 
 this subsection or otherwise fails or has failed to 
 comply with the requirements of this subsection, the 
 Comptroller may issue and serve upon the association a 
 notice of intent to revoke the authority of the 
 association to exercise the powers granted by this 
 subsection. The notice shall contain a statement of the 
 facts constituting the alleged unlawful or unsound 
 exercise of powers, or failure to exercise powers, or 
 failure to comply, and shall fix a time and place at 
 which a hearing will be held to determine whether an 
 order revoking authority to exercise such powers should 
 issue against the association.
 (B) Such hearing shall be conducted in accordance 
 with the provisions of subsection (d)(1)(B), and 
 subject to judicial review as therein provided, and 
 shall be fixed for a date not earlier than 30 days and 
 not later than 60 days after service of such notice 
 unless the Comptroller sets an earlier or later date at 
 the request of any Federal savings association so 
 served.
 (C) Unless the Federal savings association so served 
 shall appear at the hearing by a duly authorized 
 representative, it shall be deemed to have consented to 
 the issuance of the revocation order. In the event of 
 such consent, or if upon the record made at any such 
 hearing, the Comptroller shall find that any allegation 
 specified in the notice of charges has been 
 established, the Comptroller may issue and serve upon 
 the association an order prohibiting it from accepting 
 any new or additional trust accounts and revoking 
 authority to exercise any and all powers granted by 
 this subsection, except that such order shall permit 
 the association to continue to service all previously 
 accepted trust accounts pending their expeditious 
 divestiture or termination.
 (D) A revocation order shall become effective not 
 earlier than the expiration of 30 days after service of 
 such order upon the association so served (except in 
 the case of a revocation order issued upon consent, 
 which shall become effective at the time specified 
 therein), and shall remain effective and enforceable, 
 except to such extent as it is stayed, modified, 
 terminated, or set aside by action of the Comptroller 
 or a reviewing court.
 (o) Conversion of State Savings Banks.--(1) Subject to the 
provisions of this subsection and under regulations of the 
Comptroller, the Comptroller may authorize the conversion of a 
State-chartered savings bank into a Federal savings bank, if 
such conversion is not in contravention of State law, and 
provide for the organization, incorporation, operation, 
examination, and regulation of such institution.
 (2)(A) Any Federal savings bank chartered pursuant to this 
subsection shall continue to be insured by the Deposit 
Insurance Fund.
 (B) The Comptroller shall notify the Corporation of any 
application under this Act for conversion to a Federal charter 
by an institution insured by the Corporation, shall consult 
with the Corporation before disposing of the application, and 
shall notify the Corporation of the determination of the 
Comptroller with respect to such application.
 (C) Notwithstanding any other provision of law, if the 
Corporation determines that conversion into a Federal stock 
savings bank or the chartering of a Federal stock savings bank 
is necessary to prevent the default of a savings bank it 
insures or to reopen a savings bank in default that it insured, 
or if the Corporation determines, with the concurrence of the 
Comptroller, that severe financial conditions exist that 
threaten the stability of a savings bank insured by the 
Corporation and that such a conversion or charter is likely to 
improve the financial condition of such savings bank, the 
Corporation shall provide the Comptroller with a certificate of 
such determination, the reasons therefor in conformance with 
the requirements of this Act, and the bank shall be converted 
or chartered by the Comptroller, pursuant to the regulations 
thereof, from the time the Corporation issues the certificate.
 (D) A bank may be converted under subparagraph (C) only if 
the board of trustees of the bank--
 (i) has specified in writing that the bank is in 
 danger of closing or is closed, or that severe 
 financial conditions exist that threaten the stability 
 of the bank and a conversion is likely to improve the 
 financial condition of the bank; and
 (ii) has requested in writing that the Corporation 
 use the authority of subparagraph (C).
 (E)(i) Before making a determination under subparagraph (D), 
the Corporation shall consult the State bank supervisor of the 
State in which the bank in danger of closing is chartered. The 
State bank supervisor shall be given a reasonable opportunity, 
and in no event less than 48 hours, to object to the use of the 
provisions of subparagraph (D).
 (ii) If the State supervisor objects during such period, the 
Corporation may use the authority of subparagraph (D) only by 
an affirmative vote of three-fourths of the Board of Directors. 
The Board of Directors shall provide the State supervisor, as 
soon as practicable, with a written certification of its 
determination.
 (3) A Federal savings bank chartered under this subsection 
shall have the same authority with respect to investments, 
operations, and activities, and shall be subject to the same 
restrictions, including those applicable to branching and 
discrimination, as would apply to it if it were chartered as a 
Federal savings bank under any other provision of this Act.
 (p) Conversions.--(1) Notwithstanding any other provision of 
law, and consistent with the purposes of this Act, the 
Comptroller may authorize (or in the case of a Federal savings 
association, require) the conversion of any mutual savings 
association or Federal mutual savings bank that is insured by 
the Corporation into a Federal stock savings association or 
Federal stock savings bank, or charter a Federal stock savings 
association or Federal stock savings bank to acquire the assets 
of, or merge with such a mutual institution under the 
regulations of the Comptroller.
 (2) Authorizations under this subsection may be made only--
 (A) if the Comptroller has determined that severe 
 financial conditions exist which threaten the stability 
 of an association and that such authorization is likely 
 to improve the financial condition of the association,
 (B) when the Corporation has contracted to provide 
 assistance to such association under section 13 of the 
 Federal Deposit Insurance Act, or
 (C) to assist an institution in receivership.
 (3) A Federal savings bank chartered under this subsection 
shall have the same authority with respect to investments, 
operations and activities, and shall be subject to the same 
restrictions, including those applicable to branching and 
discrimination, as would apply to it if it were chartered as a 
Federal savings bank under any other provision of this Act, and 
may engage in any investment, activity, or operation that the 
institution it acquired was engaged in if that institution was 
a Federal savings bank, or would have been authorized to engage 
in had that institution converted to a Federal charter.
 (q) Tying Arrangements.--(1) A savings association may not in 
any manner extend credit, lease, or sell property of any kind, 
or furnish any service, or fix or vary the consideration for 
any of the foregoing, on the condition or requirement--
 (A) that the customer shall obtain additional credit, 
 property, or service from such savings association, or 
 from any service corporation or affiliate of such 
 association, other than a loan, discount, deposit, or 
 trust service;
 (B) that the customer provide additional credit, 
 property, or service to such association, or to any 
 service corporation or affiliate of such association, 
 other than those related to and usually provided in 
 connection with a similar loan, discount, deposit, or 
 trust service; and
 (C) that the customer shall not obtain some other 
 credit, property, or service from a competitor of such 
 association, or from a competitor of any service 
 corporation or affiliate of such association, other 
 than a condition or requirement that such association 
 shall reasonably impose in connection with credit 
 transactions to assure the soundness of credit.
 (2)(A) Any person may sue for and have injunctive relief, in 
any court of the United States having jurisdiction over the 
parties, against threatened loss or damage by reason of a 
violation of paragraph (1), under the same conditions and 
principles as injunctive relief against threatened conduct that 
will cause loss or damage is granted by courts of equity and 
under the rules governing such proceedings.
 (B) Upon the execution of proper bond against damages for an 
injunction improvidently granted and a showing that the danger 
of irreparable loss or damage is immediate, a preliminary 
injunction may issue.
 (3) Any person injured by a violation of paragraph (1) may 
bring an action in any district court of the United States in 
which the defendant resides or is found or has an agent, 
without regard to the amount in controversy, or in any other 
court of competent jurisdiction, and shall be entitled to 
recover three times the amount of the damages sustained, and 
the cost of suit, including a reasonable attorney's fee. Any 
such action shall be brought within 4 years from the date of 
the occurrence of the violation.
 (4) Nothing contained in this subsection affects in any 
manner the right of the United States or any other party to 
bring an action under any other law of the United States or of 
any State, including any right which may exist in addition to 
specific statutory authority, challenging the legality of any 
act or practice which may be proscribed by this subsection. No 
regulation or order issued by the Board under this subsection 
shall in any manner constitute a defense to such action.
 (5) For purposes of this subsection, the term ``loan'' 
includes obligations and extensions or advances of credit.
 (6) Exceptions.--The Board may, by regulation or 
 order, permit such exceptions to the prohibitions of 
 this subsection as the Board in consultation with the 
 Comptroller and the Corporation, considers will not be 
 contrary to the purposes of this subsection and which 
 conform to exceptions granted by the Board pursuant to 
 section 106(b) of the Bank Holding Company Act 
 Amendments of 1970.
 (r) Out-of-State Branches.--(1) No Federal savings 
association may establish, retain, or operate a branch outside 
the State in which the Federal savings association has its home 
office, unless the association qualifies as a domestic building 
and loan association under section 7701(a)(19) of the Internal 
Revenue Code of 1986 or meets the asset composition test 
imposed by subparagraph (C) of that section on institutions 
seeking so to qualify, or qualifies as a qualified thrift 
lender, as determined under section 10(m) of this Act. No out-
of-State branch so established shall be retained or operated 
unless the total assets of the Federal savings association 
attributable to all branches of the Federal savings association 
in that State would qualify the branches as a whole, were they 
otherwise eligible, for treatment as a domestic building and 
loan association under section 7701(a)(19) or as a qualified 
thrift lender, as determined under section 10(m) of this Act, 
as applicable.
 (2) The limitations of paragraph (1) shall not apply if--
 (A) the branch results from a transaction authorized 
 under section 13(k) of the Federal Deposit Insurance 
 Act;
 (B) the branch was authorized for the Federal savings 
 association prior to October 15, 1982;
 (C) the law of the State where the branch is located, 
 or is to be located, would permit establishment of the 
 branch if the association was a savings association or 
 savings bank chartered by the State in which its home 
 office is located; or
 (D) the branch was operated lawfully as a branch 
 under State law prior to the association's conversion 
 to a Federal charter.
 (3) The Comptroller of the Currency, for good cause shown, 
may allow Federal savings associations up to 2 years to comply 
with the requirements of this subsection.
 (s) Minimum Capital Requirements.--
 (1) In general.--Consistent with the purposes of 
 section 908 of the International Lending Supervision 
 Act of 1983 and the capital requirements established 
 pursuant to such section by the appropriate Federal 
 banking agencies (as defined in section 903(1) of such 
 Act), the Comptroller of the Currency shall require all 
 savings associations to achieve and maintain adequate 
 capital by--
 (A) establishing minimum levels of capital 
 for savings associations; and
 (B) using such other methods as the 
 Comptroller of the Currency determines to be 
 appropriate.
 (2) Minimum capital levels may be determined by 
 director case-by-case.--The Comptroller of the Currency 
 may, consistent with subsection (t), establish the 
 minimum level of capital for a savings association at 
 such amount or at such ratio of capital-to-assets as 
 the Comptroller of the Currency determines to be 
 necessary or appropriate for such association in light 
 of the particular circumstances of the association.
 (3) Unsafe or unsound practice.--In the discretion of 
 the appropriate Federal banking agency, the appropriate 
 Federal banking agency, may treat the failure of any 
 savings association to maintain capital at or above the 
 minimum level required by the Comptroller under this 
 subsection or subsection (t) as an unsafe or unsound 
 practice.
 (4) Directive to increase capital.--
 (A) Plan may be required.--In addition to any 
 other action authorized by law, including 
 paragraph (3), the appropriate Federal banking 
 agency may issue a directive requiring any 
 savings association which fails to maintain 
 capital at or above the minimum level required 
 by the appropriate Federal banking agency to 
 submit and adhere to a plan for increasing 
 capital which is acceptable to the appropriate 
 Federal banking agency.
 (B) Enforcement of plan.--Any directive 
 issued and plan approved under subparagraph (A) 
 shall be enforceable under section 8 of the 
 Federal Deposit Insurance Act to the same 
 extent and in the same manner as an outstanding 
 order which was issued under section 8 of the 
 Federal Deposit Insurance Act and has become 
 final.
 (5) Plan taken into account in other proceedings.--
 The appropriate Federal banking agency may--
 (A) consider a savings association's progress 
 in adhering to any plan required under 
 paragraph (4) whenever such association or any 
 affiliate of such association (including any 
 company which controls such association) seeks 
 the approval of the appropriate Federal banking 
 agency for any proposal which would have the 
 effect of diverting earnings, diminishing 
 capital, or otherwise impeding such 
 association's progress in meeting the minimum 
 level of capital required by the appropriate 
 Federal banking agency; and
 (B) disapprove any proposal referred to in 
 subparagraph (A) if the appropriate Federal 
 banking agency determines that the proposal 
 would adversely affect the ability of the 
 association to comply with such plan.
 (t) Capital Standards.--
 (1) In general.--
 (A) Requirement for standards to be 
 prescribed.--The appropriate Federal banking 
 agency shall, by regulation, prescribe and 
 maintain uniformly applicable capital standards 
 for savings associations. Those standards shall 
 include--
 (i) a leverage limit;
 (ii) a tangible capital requirement; 
 and
 (iii) a risk-based capital 
 requirement.
 (B) Compliance.--A savings association is not 
 in compliance with capital standards for 
 purposes of this subsection unless it complies 
 with all capital standards prescribed under 
 this paragraph.
 (C) Stringency.--The standards prescribed 
 under this paragraph shall be no less stringent 
 than the capital standards applicable to 
 national banks.
 (2) Content of standards.--
 (A) Leverage limit.--The leverage limit 
 prescribed under paragraph (1) shall require a 
 savings association to maintain core capital in 
 an amount not less than 3 percent of the 
 savings association's total assets.
 (B) Tangible capital requirement.--The 
 tangible capital requirement prescribed under 
 paragraph (1) shall require a savings 
 association to maintain tangible capital in an 
 amount not less than 1.5 percent of the savings 
 association's total assets.
 (C) Risk-based capital requirement.--
 Notwithstanding paragraph (1)(C), the risk-
 based capital requirement prescribed under 
 paragraph (1) may deviate from the risk-based 
 capital standards applicable to national banks 
 to reflect interest-rate risk or other risks, 
 but such deviations shall not, in the 
 aggregate, result in materially lower levels of 
 capital being required of savings associations 
 under the risk-based capital requirement than 
 would be required under the risk-based capital 
 standards applicable to national banks.
 (5) Separate capitalization required for certain 
 subsidiaries.--
 (A) In general.--In determining compliance 
 with capital standards prescribed under 
 paragraph (1), all of a savings association's 
 investments in and extensions of credit to any 
 subsidiary engaged in activities not 
 permissible for a national bank shall be 
 deducted from the savings association's 
 capital.
 (B) Exception for agency activities.--
 Subparagraph (A) shall not apply with respect 
 to a subsidiary engaged, solely as agent for 
 its customers, in activities not permissible 
 for a national bank unless the appropriate 
 Federal banking agency, in the sole discretion 
 of the appropriate Federal banking agency, 
 determines that, in the interests of safety and 
 soundness, this subparagraph should cease to 
 apply to that subsidiary.
 (C) Other exceptions.--Subparagraph (A) shall 
 not apply with respect to any of the following:
 (i) Mortgage banking subsidiaries.--A 
 savings association's investments in 
 and extensions of credit to a 
 subsidiary engaged solely in mortgage-
 banking activities.
 (ii) Subsidiary insured depository 
 institutions.--A savings association's 
 investments in and extensions of credit 
 to a subsidiary--
 (I) that is itself an insured 
 depository institution or a 
 company the sole investment of 
 which is an insured depository 
 institution, and
 (II) that was acquired by the 
 parent insured depository 
 institution prior to May 1, 
 1989.
 (iii) Certain federal savings 
 banks.--Any Federal savings association 
 existing as a Federal savings 
 association on the date of enactment of 
 the Financial Institutions Reform, 
 Recovery, and Enforcement Act of 1989--
 (I) that was chartered prior 
 to October 15, 1982, as a 
 savings bank or a cooperative 
 bank under State law; or
 (II) that acquired its 
 principal assets from an 
 association that was chartered 
 prior to October 15, 1982, as a 
 savings bank or a cooperative 
 bank under State law.
 (E) Consolidation of subsidiaries not 
 separately capitalized.--In determining 
 compliance with capital standards prescribed 
 under paragraph (1), the assets and liabilities 
 of each of a savings association's subsidiaries 
 (other than any subsidiary described in 
 subparagraph (C)(ii)) shall be consolidated 
 with the savings association's assets and 
 liabilities, unless all of the savings 
 association's investments in and extensions of 
 credit to the subsidiary are deducted from the 
 savings association's capital pursuant to 
 subparagraph (A).
 (6) Consequences of failing to comply with capital 
 standards.--
 (A)
 (B) On or after january 1, 1991.--On or after 
 January 1, 1991, the appropriate Federal 
 banking agency--
 (i) shall prohibit any asset growth 
 by any savings association not in 
 compliance with capital standards, 
 except as provided in subparagraph (C); 
 and
 (ii) shall require any savings 
 association not in compliance with 
 capital standards to comply with a 
 capital directive issued by the 
 appropriate Federal banking agency 
 (which may include such restrictions, 
 including restrictions on the payment 
 of dividends and on compensation, as 
 the appropriate Federal banking agency 
 determines to be appropriate).
 (C) Limited growth exception.--The 
 appropriate Federal banking agency may permit 
 any savings association that is subject to 
 subparagraph (B) to increase its assets in an 
 amount not exceeding the amount of net interest 
 credited to the savings association's deposit 
 liabilities if--
 (i) the savings association obtains 
 the prior approval of the appropriate 
 Federal banking agency;
 (ii) any increase in assets is 
 accompanied by an increase in tangible 
 capital in an amount not less than 6 
 percent of the increase in assets (or, 
 in the discretion of the appropriate 
 Federal banking agency if the leverage 
 limit then applicable is less than 6 
 percent, in an amount equal to the 
 increase in assets multiplied by the 
 percentage amount of the leverage 
 limit);
 (iii) any increase in assets is 
 accompanied by an increase in capital 
 not less in percentage amount than 
 required under the risk-based capital 
 standard then applicable;
 (iv) any increase in assets is 
 invested in low-risk assets, such as 
 first mortgage loans secured by 1- to 
 4-family residences and fully secured 
 consumer loans; and
 (v) the savings association's ratio 
 of core capital to total assets is not 
 less than the ratio existing on January 
 1, 1991.
 (D) Additional restrictions in case of 
 excessive risks or rates.--The appropriate 
 Federal banking agency may restrict the asset 
 growth of any savings association that the 
 appropriate Federal banking agency determines 
 is taking excessive risks or paying excessive 
 rates for deposits.
 (E) Failure to comply with plan, regulation, 
 or order.--The appropriate Federal banking 
 agency may treat as an unsafe and unsound 
 practice any material failure by a savings 
 association to comply with any plan, 
 regulation, or order under this paragraph.
 (F) Effect on other regulatory authority.--
 This paragraph does not limit any authority of 
 the appropriate Federal banking agency under 
 this Act or any other provision of law.
 (7) Exemption from certain sanctions.--
 (A) Application for exemption.--Any savings 
 association not in compliance with the capital 
 standards prescribed under paragraph (1) may 
 apply to the appropriate Federal banking agency 
 for an exemption from any applicable sanction 
 or penalty for noncompliance which the 
 appropriate Federal banking agency may impose 
 under this Act.
 (B) Effect of grant of exemption.--If the 
 appropriate Federal banking agency approves any 
 savings association's application under 
 subparagraph (A), the only sanction or penalty 
 to be imposed by the appropriate Federal 
 banking agency under this Act for the savings 
 association's failure to comply with the 
 capital standards prescribed under paragraph 
 (1) is the growth limitation contained in 
 paragraph (6)(B) or paragraph (6)(C), whichever 
 is applicable.
 (C) Standards for approval or disapproval.--
 (i) Approval.--The appropriate 
 Federal banking agency may approve an 
 application for an exemption if the 
 appropriate Federal banking agency 
 determines that--
 (I) such exemption would pose 
 no significant risk to the 
 Deposit Insurance Fund;
 (II) the savings 
 association's management is 
 competent;
 (III) the savings association 
 is in substantial compliance 
 with all applicable statutes, 
 regulations, orders, and 
 supervisory agreements and 
 directives; and
 (IV) the savings 
 association's management has 
 not engaged in insider dealing, 
 speculative practices, or any 
 other activities that have 
 jeopardized the association's 
 safety and soundness or 
 contributed to impairing the 
 association's capital.
 (ii) Denial or revocation of 
 approval.--The appropriate Federal 
 banking agency shall deny any 
 application submitted under clause (i) 
 and revoke any prior approval granted 
 with respect to any such application if 
 the appropriate Federal banking agency 
 determines that the association's 
 failure to meet any capital standards 
 prescribed under paragraph (1) is 
 accompanied by--
 (I) a pattern of consistent 
 losses;
 (II) substantial dissipation 
 of assets;
 (III) evidence of imprudent 
 management or business 
 behavior;
 (IV) a material violation of 
 any Federal law, any law of any 
 State to which such association 
 is subject, or any applicable 
 regulation; or
 (V) any other unsafe or 
 unsound condition or activity, 
 other than the failure to meet 
 such capital standards.
 (D) Submission of plan required.--Any 
 application submitted under subparagraph (A) 
 shall be accompanied by a plan which--
 (i) meets the requirements of 
 paragraph (6)(A)(ii); and
 (ii) is acceptable to the appropriate 
 Federal banking agency.
 (E) Failure to comply with plan.--The 
 appropriate Federal banking agency shall treat 
 as an unsafe and unsound practice any material 
 failure by any savings association which has 
 been granted an exemption under this paragraph 
 to comply with the provisions of any plan 
 submitted by such association under 
 subparagraph (D).
 (F) Exemption not available with respect to 
 unsafe or unsound practices.--This paragraph 
 does not limit any authority of the appropriate 
 Federal banking agency under any other 
 provision of law, including section 8 of the 
 Federal Deposit Insurance Act, to take any 
 appropriate action with respect to any unsafe 
 or unsound practice or condition of any savings 
 association, other than the failure of such 
 savings association to comply with the capital 
 standards prescribed under paragraph (1).
 (8)
 (9) Definitions.--For purposes of this subsection--
 (A) Core capital.--Unless the Comptroller 
 prescribes a more stringent definition, the 
 term ``core capital'' means core capital as 
 defined by the Comptroller of the Currency for 
 national banks, less any unidentifiable 
 intangible assets.
 (B) Tangible capital.--The term ``tangible 
 capital'' means core capital minus any 
 intangible assets (as intangible assets are 
 defined by the Comptroller for national banks).
 (C) Total assets.--The term ``total assets'' 
 means total assets (as total assets are defined 
 by the Comptroller of the Currency for national 
 banks) adjusted in the same manner as total 
 assets would be adjusted in determining 
 compliance with the leverage limit applicable 
 to national banks if the savings association 
 were a national bank.
 (10) Use of comptroller's definitions.--
 (A) In general.--The standards prescribed 
 under paragraph (1) shall include all relevant 
 substantive definitions established by the 
 Comptroller of the Currency for national banks.
 (B) Special rule.--If the Comptroller of the 
 Currency has not made effective regulations 
 defining core capital or establishing a risk-
 based capital standard, the appropriate Federal 
 banking agency shall use the definition and 
 standard contained in the Comptroller's most 
 recently published final regulations.
 (u) Limits on Loans to One Borrower.--
 (1) In general.--Section 5200 of the Revised Statutes 
 shall apply to savings associations in the same manner 
 and to the same extent as it applies to national banks.
 (2) Special rules.--
 (A) Notwithstanding paragraph (1), a savings 
 association may make loans to one borrower 
 under one of the following clauses:
 (i) For any purpose, not to exceed 
 $500,000.
 (ii) To develop domestic residential 
 housing units, not to exceed the lesser 
 of $30,000,000 or 30 percent of the 
 savings association's unimpaired 
 capital and unimpaired surplus, if--
 (I) the savings association 
 is and continues to be in 
 compliance with the fully 
 phased-in capital standards 
 prescribed under subsection 
 (t);
 (II) the appropriate Federal 
 banking agency, by order, 
 permits the savings association 
 to avail itself of the higher 
 limit provided by this clause;
 (III) loans made under this 
 clause to all borrowers do not, 
 in aggregate, exceed 150 
 percent of the savings 
 association's unimpaired 
 capital and unimpaired surplus; 
 and
 (IV) such loans comply with 
 all applicable loan-to-value 
 requirements.
 (B) A savings association's loans to one 
 borrower to finance the sale of real property 
 acquired in satisfaction of debts previously 
 contracted in good faith shall not exceed 50 
 percent of the savings association's unimpaired 
 capital and unimpaired surplus.
 (3) Authority to impose more stringent 
 restrictions.--The appropriate Federal banking agency 
 may impose more stringent restrictions on a savings 
 association's loans to one borrower if the appropriate 
 Federal banking agency determines that such 
 restrictions are necessary to protect the safety and 
 soundness of the savings association.
 (v) Reports of Condition.--
 (1) In general.--Each association shall make reports 
 of conditions to the appropriate Federal banking agency 
 which shall be in a form prescribed by the appropriate 
 Federal banking agency and shall contain--
 (A) information sufficient to allow the 
 identification of potential interest rate and 
 credit risk;
 (B) a description of any assistance being 
 received by the association, including the type 
 and monetary value of such assistance;
 (C) the identity of all subsidiaries and 
 affiliates of the association;
 (D) the identity, value, type, and sector of 
 investment of all equity investments of the 
 associations and subsidiaries; and
 (E) other information that the appropriate 
 Federal banking agency may prescribe.
 (2) Public disclosure.--
 (A) Reports required under paragraph (1) and 
 all information contained therein shall be 
 available to the public upon request, unless 
 the appropriate Federal banking agency 
 determines--
 (i) that a particular item or 
 classification of information should 
 not be made public in order to protect 
 the safety or soundness of the 
 institution concerned or institutions 
 concerned, or the Deposit Insurance 
 Fund; or
 (ii) that public disclosure would not 
 otherwise be in the public interest.
 (B) Any determination made by the appropriate 
 Federal banking agency under subparagraph (A) 
 not to permit the public disclosure of 
 information shall be made in writing, and if 
 the appropriate Federal banking agency 
 restricts any item of information for savings 
 institutions generally, the appropriate Federal 
 banking agency shall disclose the reason in 
 detail in the Federal Register.
 (C) The determinations of the appropriate 
 Federal banking agency under subparagraph (A) 
 shall not be subject to judicial review.
 (3) Access by certain parties.--
 (A) Notwithstanding paragraph (2), the 
 persons described in subparagraph (B) shall not 
 be denied access to any information contained 
 in a report of condition, subject to reasonable 
 requirements of confidentiality. Those 
 requirements shall not prevent such information 
 from being transmitted to the Comptroller 
 General of the United States for analysis.
 (B) The following persons are described in 
 this subparagraph for purposes of subparagraph 
 (A):
 (i) the Chairman and ranking minority 
 member of the Committee on Banking, 
 Housing, and Urban Affairs of the 
 Senate and their designees; and
 (ii) the Chairman and ranking 
 minority member of the Committee on 
 Banking, Finance and Urban Affairs of 
 the House of Representatives and their 
 designees.
 (4) First tier penalties.--Any savings association 
 which--
 (A) maintains procedures reasonably adapted 
 to avoid any inadvertent and unintentional 
 error and, as a result of such an error--
 (i) fails to submit or publish any 
 report or information required by the 
 appropriate Federal banking agency 
 under paragraph (1) or (2), within the 
 period of time specified by the 
 appropriate Federal banking agency; or
 (ii) submits or publishes any false 
 or misleading report or information; or
 (B) inadvertently transmits or publishes any 
 report which is minimally late,
 shall be subject to a penalty of not more than $2,000 
 for each day during which such failure continues or 
 such false or misleading information is not corrected. 
 The savings association shall have the burden of 
 proving by a preponderence of the evidence that an 
 error was inadvertent and unintentional and that a 
 report was inadvertently transmitted or published late.
 (5) Second tier penalties.--Any savings association 
 which--
 (A) fails to submit or publish any report or 
 information required by the appropriate Federal 
 banking agency under paragraph (1) or (2), 
 within the period of time specified by the 
 appropriate Federal banking agency; or
 (B) submits or publishes any false or 
 misleading report or information,
 in a manner not described in paragraph (4) shall be 
 subject to a penalty of not more than $20,000 for each 
 day during which such failure continues or such false 
 or misleading information is not corrected.
 (6) Third tier penalties.--If any savings association 
 knowingly or with reckless disregard for the accuracy 
 of any information or report described in paragraph (5) 
 submits or publishes any false or misleading report or 
 information, the appropriate Federal banking agency may 
 assess a penalty of not more than $1,000,000 or 1 
 percent of total assets, whichever is less, per day for 
 each day during which such failure continues or such 
 false or misleading information is not corrected.
 (7) Assessment.--Any penalty imposed under paragraph 
 (4), (5), or (6) shall be assessed and collected by the 
 appropriate Federal banking agency in the manner 
 provided in subparagraphs (E), (F), (G), and (I) of 
 section 8(i)(2) of the Federal Deposit Insurance Act 
 (for penalties imposed under such section), and any 
 such assessment (including the determination of the 
 amount of the penalty) shall be subject to the 
 provisions of such subsection.
 (8) Hearing.--Any savings association against which 
 any penalty is assessed under this subsection shall be 
 afforded a hearing if such savings association submits 
 a request for such hearing within 20 days after the 
 issuance of the notice of assessment. Section 8(h) of 
 the Federal Deposit Insurance Act shall apply to any 
 proceeding under this subsection.
 (w) Forfeiture of Franchise for Money Laundering or Cash 
Transaction Reporting Offenses.--
 (1) In general.--
 (A) Conviction of title 18 offense.--
 
 (I) Duty to notify.--If a Federal 
 savings association has been convicted 
 of any criminal offense under section 
 1956 or 1957 of title 18, United States 
 Code, the Attorney General shall 
 provide to the Comptroller a written 
 notification of the conviction and 
 shall include a certified copy of the 
 order of conviction from the court 
 rendering the decision.
 (II) Notice of termination; 
 pretermination hearing.--After 
 receiving written notification from the 
 Attorney General of such a conviction, 
 the Comptroller shall issue to the 
 savings association a notice of the 
 intention of the Comptroller to 
 terminate all rights, privileges, and 
 franchises of the savings association 
 and schedule a pretermination hearing.
 (B) Conviction of title 31 offenses.--If a 
 Federal savings association is convicted of any 
 criminal offense under section 5322 or 5324 of 
 title 31, United States Code, after receiving 
 written notification from the Attorney General, 
 the Comptroller may issue to the savings 
 association a notice of the intention of the 
 Comptroller to terminate all rights, 
 privileges, and franchises of the savings 
 association and schedule a pretermination 
 hearing.
 (C) Judicial review.--Subsection 
 (d)(1)(B)(vii) shall apply to any proceeding 
 under this subsection.
 (2) Factors to be considered.--In determining whether 
 a franchise shall be forfeited under paragraph (1), the 
 Comptroller shall take into account the following 
 factors:
 (A) The extent to which directors or senior 
 executive officers of the savings association 
 knew of, were involved in, the commission of 
 the money laundering offense of which the 
 association was found guilty.
 (B) The extent to which the offense occurred 
 despite the existence of policies and 
 procedures within the savings association which 
 were designed to prevent the occurrence of any 
 such offense.
 (C) The extent to which the savings 
 association has fully cooperated with law 
 enforcement authorities with respect to the 
 investigation of the money laundering offense 
 of which the association was found guilty.
 (D) The extent to which the savings 
 association has implemented additional internal 
 controls (since the commission of the offense 
 of which the savings association was found 
 guilty) to prevent the occurrence of any other 
 money laundering offense.
 (E) The extent to which the interest of the 
 local community in having adequate deposit and 
 credit services available would be threatened 
 by the forfeiture of the franchise.
 (3) Successor liability.--This subsection shall not 
 apply to a successor to the interests of, or a person 
 who acquires, a savings association that violated a 
 provision of law described in paragraph (1), if the 
 successor succeeds to the interests of the violator, or 
 the acquisition is made, in good faith and not for 
 purposes of evading this subsection or regulations 
 prescribed under this subsection.
 (4) Definition.--The term ``senior executive 
 officer'' has the same meaning as in regulations 
 prescribed under section 32(f) of the Federal Deposit 
 Insurance Act.
 (x) Home State Citizenship.--In determining whether a Federal 
court has diversity jurisdiction over a case in which a Federal 
savings association is a party, the Federal savings association 
shall be considered to be a citizen only of the State in which 
such savings association has its home office.

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