HR 5912 — Close the ILC Loophole Act
Last action — Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 28 - 25.
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✓Introduced
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2In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Summary
Close the ILC Loophole Act This bill limits the exemption from certain banking regulations applicable to industrial loan companies to those companies approved to receive Federal Deposit Insurance Corporation insurance before September 23, 2021, or companies with an application pending as of September 23, 2021. Industrial loan companies are state chartered institutions that provide several services similar to banks, such as originating loans and processing payments. Parent companies of such industrial loan companies are subject to the supervision of the Board of Governors of the Federal Reserve System. The bill also sets forth procedures regarding a change in control of an industrial loan company. The Government Accountability Office must report on the effects of industrial loan companies, industrial banks, and other similar institutions on the economy, including the effect on competitiveness, market structure, and different industries.
Bill Text
- Introduced Introduced in House Current html November 09, 2021
Compared against current U.S. Code AI-generated reading aid — verify against the official bill.
The bill amends the Bank Holding Company Act to reform regulations regarding industrial loan companies and their parent companies, particularly concerning deposit insurance and reporting requirements.
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12 U.S.C. 1841(c)(2)(H)
which has been approved to receive deposit insurance from the Federal Deposit Insurance Corporation on or before September 23, 2021 (or has an application to receive deposit insurance pending before the Federal Deposit Insurance Corporation where such application was made on or before September 23, 2021, or has had such an application approved), and
New industrial loan companies must have deposit insurance approved before a certain date to be eligible for an exemption from the definition of a bank.
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12 U.S.C. 1841
The Board shall have the same authority to require a parent company of an industrial loan company to make reports and submit to examinations as the Board has with respect to a bank holding company.
Establishes similar reporting and examination authority for parent companies of industrial loan companies as exists for bank holding companies.
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12 U.S.C. 1817(j)
Except as provided in subsection (b), the appropriate Federal banking agency shall disapprove a change in control, as provided in section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)), of an industrial loan company.
Requires disapproval of change in control of industrial loan companies unless certain exceptions apply.
Action History
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Introduced in House
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Introduced in House
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Referred to the House Committee on Financial Services.
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Committee Consideration and Mark-up Session Held.
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Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 28 - 25.
Sponsors
- Jesús G. "Chuy" García · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 546 not signed on
Sponsors (1)
- García, Jesús G. "Chuy" Democratic
Co-sponsors (0)
None.
Not signed on (546)
546 members have not signed on to this bill.
Show all 546 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does HR 5912 do?
- Close the ILC Loophole Act This bill limits the exemption from certain banking regulations applicable to industrial loan companies to those companies approved to receive Federal Deposit Insurance Corporation insurance before September 23, 2021, or companies with an application pending as of September 23, 2021. Industrial loan companies are state chartered institutions that provide several services similar to banks, such as originating loans and processing payments. Parent companies of such industrial loan companies are subject to the supervision of the Board of Governors of the Federal Reserve System. The bill also sets forth procedures regarding a change in control of an industrial loan company. The Government Accountability Office must report on the effects of industrial loan companies, industrial banks, and other similar institutions on the economy, including the effect on competitiveness, market structure, and different industries.
- Who sponsors HR 5912?
- HR 5912 is sponsored by García, Jesús G. "Chuy" (Democratic).
- What is the current status of HR 5912?
- This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track HR 5912?
- Track HR 5912 free on One Click Politics — get push/email alerts when it moves.
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