the end of the 3-year period beginning on such date of enactment.

"(B) PROVISION APPLICABLE TO CERTAIN INSTITUTIONS.-Subparagraph (A) shall not apply with respect to any insured depository institution the acquisition of which occurs after the date of the enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991 pursuant to an application or notice filed before such date with any appropriate Federal banking agency or State bank supervisor.

"(5) EXCEPTION.-Notwithstanding the previous paragraphs, any provision of State law in existence on the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, or enacted thereafter, which restricts entry to the acquisition of existing banks shall apply, except that a State law which requires that the bank must have been in existence longer than 5 years shall not apply unless such law is in effect on such date of enactment.".

(b) EFFECTIVE DATE.-The amendment made by this section shall take effect at the end of the 18-month period beginning on the date of the enactment of this Act.

SEC. 202. INTERSTATE BRANCHING BY NATIONAL BANKS.

Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended

(1) by redesignating subsections (d) through (h) as subsections (e) through (i), respectively; and

(2) by inserting after subsection (c) the following:

"(d) INTERSTATE BRANCHING BY NATIONAL BANKS.

"(1) IN GENERAL.

"(A) APPROVALS AUTHORIZED.-Beginning 3 years after the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, the Comptroller of the Currency may approve an application under this section which will permit a national bank that is adequately capitalized and adequately managed to establish or acquire, and operate, a branch located outside the State in which the main office of such bank is located, subject to paragraphs (2), (3), and (6). "(B) CONDITIONS.-In determining whether to grant approval under subparagraph (A), the Comptroller of the Currency shall consider the bank's rating under the Community Reinvestment Act of 1977 and the views of the appropriate State bank officials regarding the bank's compliance with applicable State community reinvestment laws. "(C) APPLICABLE LAW.

"(i) IN GENERAL.-Subject to paragraph (6), any branch established or acquired under subparagraph (A) shall be subject to the laws of the host State with respect to intrastate branching, consumer protection, fair lending, and community reinvestment as if it were a branch of a bank chartered by that State, unless such State law, is preempted by Federal law regarding the same subject. There shall be no discriminatory effect in the application of such laws between a branch of a bank chartered by the host State and in-State branches of out-of-State national banks. Such State laws shall be enforced, with respect to branches of national banks by the Comptroller of the Currency. All other laws of the host State shall apply as if the branch was a national bank situated in that State.

"(ii) FILING REQUIREMENT.-A host State may require any national bank that has its main office in another State that wishes to establish a branch within the host State to comply with filing requirements that are not discriminatory in nature and that are similar in their effect to those that are imposed on a corporation from another State that is not engaged in the business of banking and that seeks to engage in business in the host

State. The host State may preclude any national bank the main office of which is located in another State from establishing or operating a branch within the host State if that national bank or its branch materially fails to comply with the filing requirements. "(2) STATE ELECTION TO PROHIBIT INTERSTATE BRANCHING.

"(A) IN GENERAL.-The provisions of paragraph (1) shall not apply to branches to be located in a State which has enacted, during the period beginning on January 1, 1990, and ending 3 years after the date of the enactment of this subsection, a law that applies equally to national and State banks and that expressly prohibits all out-of-State banks from establishing or acquiring branches located in that State.

"(B) EFFECT OF PROHIBITION.-A national bank that has its main office in a State that has in effect a prohibition under subparagraph (A) may not acquire or establish a branch located in any other State under the provisions of this subsection.

"(3) STATE ELECTION TO PERMIT INTERSTATE BRANCHING.

"(A) DURING THE 3-YEAR PERIOD FOLLOWING ENACTMENT.—The Comptroller of the Currency may approve an application under paragraph (1)(A) before the expiration of the 3-year period described in paragraph (1)(A), if the State in which the branch is or will be located enacts a law during that period expressly permitting interstate branching by all national and State banks before the expiration of the time period described in paragraph (1)(A).

"(B) AFTER THE 3-YEAR PERIOD FOLLOWING ENACTMENT.—A State that originally elected, pursuant to paragraph (2), to prohibit interstate branching may nonetheless elect at any later time to permit interstate branching if such State enacts a law expressly permitting interstate branching by all national and State banks.

"(4) STATE IMPOSED CONDITIONS ON INTERSTATE BRANCHING.

"(A) A State may require a copy of an application submitted under this section to be filed with the host State banking authority in a timely manner (and the Comptroller of the Currency shall consider any timely comments of the host State prior to approving that application); and

"(B) subject to paragraph (6) a State may impose other conditions on a branch established or acquired under paragraph (1)(A) if—

"(i) the conditions do not discriminate against out of State banks or bank holding companies; and

"(ii) the imposition of the conditions is not preempted by Federal law regarding the same subject.

"(5) CONCENTRATION LIMITS.—

"(A) IN GENERAL.-The Comptroller may not approve an acquisition under paragraph (1)(A) by a bank of a branch located in another State if

"(i) the bank controls, or upon completion of the acquisition would control, more than 10 percent of the insured depository institution deposits of the United States, as determined under regulations of the Board of Governors of the Federal Reserve System; or

"(ii) the bank controls, or upon completion of the acquisition would control, 30 percent or more of the insured depository institution deposits in the State in which the branch to be acquired is located, as determined under regulations of the Board of Governors of the Federal Reserve System, except that a State may waive the applicability of this subparagraph.

"(B) LIMITATIONS.-Nothing in subparagraph (A)

"(i) affects the applicability of Federal antitrust laws or of State antitrust laws that do not discriminate against out-of-State banks or bank holding companies, or

"(ii) applies to the establishment of new branches located outside the State where the main office of the bank is located.

"(6) EXCEPTION.-Notwithstanding the previous paragraphs, any provision of State law in existence on the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, or enacted thereafter, which restricts entry to the acquisition of existing banks or branches shall apply, except that a State law which requires that the bank must have been in existence longer than 5 years shall not apply unless such law is in effect on such date of enactment. State laws in existence on the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991 that restrict such entry shall, for purposes of this paragraph, be deemed to apply to both banks and branches.

"(7) DEFINITIONS.-For purposes of this subsection

"(A) ADEQUATELY CAPITALIZED.-The term 'adequately capitalized' means, with respect to any national bank, a bank which maintains capital in an amount which meets or exceeds the required minimum ratio for each relevant capital measure.

"(B) HOST STATE.-The term 'host State' means the State in which a national bank establishes or maintains a branch other than the State in which the bank has its main office and is engaging in banking business.

"(C) INSURED DEPOSITORY INSTITUTION.— The term 'insured depository institution' has the same meaning as in section 3 of the Federal Deposit Insurance Act.".

SEC. 203. INTERSTATE BRANCHING BY STATE BANKS.

Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by adding at the end the following:

"(3) INTERSTATE BRANCHING BY STATE BANKS.-Beginning 3 years after the date of enactment of the Financial Institutions Safety and Consumer Act of 1991, an insured. State bank that is adequately capitalized and adequately managed may establish or acquire, and operate, a branch located outside the State in which the bank is chartered if authorized by the law of the State in which the bank is chartered, subject to paragraphs (5), (6), and (9).

"(4) APPLICABLE LAW.

"(A) IN GENERAL.-Subject to paragraph (9), any branch of an out-of-State bank shall be subject to the laws of the host State as if such branch were a branch of a bank chartered by that State.

"(B) ACTIVITIES OF BRANCHES.-An insured State bank that establishes a branch or branches pursuant to paragraph (3) may not conduct any activity at such branch that is not permissible for a bank chartered by the host State.

"(C) FILING REQUIREMENT.-A host State may require any insured bank chartered by another State that wishes to establish a branch within the host State to comply with filing requirements that are not discriminatory in nature and that are similar in their effect to those that are imposed on a corporation from another State that is not engaged in the business of banking and that seeks to engage in business in the host State. The host State may preclude any State bank chartered by another State from establishing or operating a branch within the host State if that State bank or its branch materially fails to comply with the filing requirements.

"(D) RESERVATION OF CERTAIN RIGHTS TO STATES.-Nothing in this subsection limits in any way the right of a State to"(i) determine the authority the authority of State banks chartered in that State to establish and maintain branches; or

"(ii) supervise, regulate, and examine State banks chartered by that State.

"(5) STATE ELECTION TO PROHIBIT INTERSTATE BRANCHING.

"(A) IN GENERAL.-The provisions of paragraph (3) shall not apply to branches to be located in a State which has enacted, during the period beginning on January 1, 1990, and ending 3 years after the date of enactment of this subsection, a law that applies equally to national and State banks and that expressly prohibits all out-of-State banks from establishing or acquiring branches located in that State.

"(B) EFFECT OF PROHIBITION.-A State bank that is chartered by a State that has in effect a prohibition under subparagraph (A) may not acquire or establish a branch located in any other State under the provisions of this subsection.

"(6) STATE ELECTION TO PERMIT INTERSTATE BRANCHING.

"(A) DURING THE 3-YEAR PERIOD FOLLOWING ENACTMENT.-A State bank may establish or acquire, and operate, a branch outside the State in which the main office of the bank is located, subject to the provisions of this subsection, before the expiration of the 3-year period described in paragraph (3), if the State in which the branch will be located enacts a law during that period expressly permitting interstate branching by all national and State banks before the expiration of the time period described in paragraph (3).

"(B) AFTER THE 3-YEAR PERIOD FOLLOWING ENACTMENT.-A State that originally elected, pursuant to paragraph (5), to prohibit interstate branching may nonetheless elect at any later time to permit interstate branching if such State enacts a law expressly permitting interstate branching by all national and State banks.

"(7) STATE IMPOSED CONDITIONS ON INTERSTATE BRANCHING.

"(A) A State may require a copy of an application submitted under this section to be filed with the host State banking authority in a timely manner (and the home State banking authority and the appropriate Federal banking agency shall consider any timely comments of the host State prior to approving that application); and

"(B) Subject to paragraph (9), a State may impose other conditions on a branch established or acquired under paragraph (3) if—

"(i) the conditions do not discriminate against out-of-State banks or banking holding companies; and

"(ii) the imposition of the conditions is not preempted by Federal law regarding the same subject.

"(8) CONCENTRATION LIMITS.—

“(A) IN GENERAL.-The home State banking authority and the appropriate Federal banking agency may not approve an acquisition under paragraph (1)(A) by a bank of a branch located in another State if—

"(i) the bank controls, or upon completion of the acquisition would control, more than 10 percent of the insured depository institution deposits of the United States, as determined under regulations of the Board of Governors of the Federal Reserve System; or

"(ii) the bank controls, or upon completion of the acquisition would control, 30 percent or more of the insured depository institution deposits in the State in which the branch to be acquired is located, as determined under regulations of the Board of Governors of the Federal Reserve System, except that a State may waive the applicability of this subparagraph.

"(B) LIMITATIONS.-Nothing in subparagraph (A)—

"(i) affects the applicability of Federal antitrust laws or of State antitrust laws that do not discriminate against out-of-State bank holding companies, or

"(ii) applies to the establishment of new branches located outside the State where the main office of the bank is located.

"(9) EXCEPTION.-Notwithstanding the previous paragraphs, any provision of State law in existence on the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, or enacted thereafter, which restricts entry only through the acquisition of existing banks or branches shall apply, except that a State law which requires that the bank must have been in existence longer than 5 years shall not apply unless such law is in effect on such date of enactment. State laws in existence on the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991 that restrict such entry shall, for purposes of this paragraph, be deemed to apply to both banks and branches.

"(10) COORDINATION OF EXAMINATION AUTHORITY.

"(A) IN GENERAL.-A host State bank supervisory or regulatory authority may examine a branch established in the host State by banks chartered by another State for the purpose of determining compliance with host State laws regarding banking, taxation, community reinvestment, fair lending, consumer protection, and permissible activities and to ensure that the activities of the branch are conducted in a manner consistent with sound banking principles and do not constitute a serious risk to the safety and sound operation of the branch.

"(B) ENFORCEMENT.-In the event that a host State bank authority as described in subparagraph (A) determines that there is a violation of host State law concerning the activities being conducted by the branch or that the branch is being operated in a manner not consistent with sound banking principles or in an unsafe and unsound manner, such host State bank authority may undertake such enforcement actions or proceedings as would be permitted under host State law if the branch in question were a bank chartered by that host State.

"(C) COOPERATIVE AGREEMENT.-The State bank authorities from one or more States are authorized to enter into cooperative agreements to facilitate State regulatory supervision of State banks, including cooperative agreements relating to the coordination of examinations and joint participation in examinations.

"(D) FEDERAL REGULATORY AUTHORITY.— "(i) IN GENERAL.-Nothing in this subsection limits in any way the authority of the appropriate Federal banking agency to examine any bank or branch of a bank for which the agency is the appropriate Federal banking agency.

"(ii) REVIEW OF INTERSTATE AGREEMENTS.— If the appropriate Federal banking authority determines that the States have failed to reach an agreement under subparagraph (C), or that such an agreement fails to adequately protect the Federal Deposit Insurance Fund, the appropriate Federal banking authority shall not defer to State examinations of the out-of-State branches.

"(11) DEFINITIONS.-For purposes of this subsection

"(A) HOST STATE.-The term 'host State' means the State in which a bank establishes or maintains a branch other than the State in which the bank is chartered and engaging in banking business.

"(B) ADEQUATELY CAPITALIZED.-For the purposes of this subsection, the term 'adequately capitalized' means, with respect to any insured State bank, a bank which maintains capital in an amount which meets or exceeds the minimum ratio for each relevant capital measure.".

SEC. 204. BRANCHING BY FOREIGN BANKS.

(a) IN GENERAL.-Section 5(a) of the International Banking Act of 1978 (12 U.S.C. 3103(a)) is amended to read as follows: "(a) INTERSTATE BANKING OPERATIONS.

"(1) IN GENERAL.-A foreign bank may establish and operate

"(A) a Federal branch or agency, with the approval of the Board and the Comptroller of the Currency, in any State outside its home State to the extent that such establishment and operation would be permitted under section 5155 of the Revised Statutes for a national bank; or

"(B) a State branch or agency, with the approval of the Board and the appropriate regulatory authority of the State, in any State outside its home State to the extent that such establishment and operation would be permitted under section 18(d) of the Federal Deposit Insurance Act for a State bank,

as if the foreign bank were a national bank having its main office, or a State bank chartered, in the home State of the foreign bank.

"(2) CRITERIA FOR DETERMINATION.-In approving an application under paragraph (1), the Board and the Comptroller of the Currency

"(A) shall apply the standards for establishment of a foreign bank office in the United States under section 7(e); and

"(B) may not approve an application unless it determines that the foreign bank's financial resources, including the capital level, are equivalent to those required for a domestic bank to be approved for branching under section 5155 of the Revised Statutes and section 18(d) of the Federal Deposit Insurance Act and, in the case of the first branching application by such foreign bank, after consultation with the Secretary of the Treasury regarding capital equivalency.

"(3) REQUIREMENT FOR A SEPARATE SUBSIDIARY. If the Comptroller of the Currency or the Board, taking into account differing regulatory or accounting standards, finds that adherence to capital requirements equivalent to those imposed under section 5155 of the Revised Statutes and by section 18(d) of the Federal Deposit Insurance Act can be verified only if banking activities are carried out in a domestic banking subsidiary within the United States, it may approve an application under paragraph (1) subject to a requirement that the foreign bank or company controlling the foreign bank establish a domestic banking subsidiary in the United States.

"(4) ADDITIONAL AUTHORITY FOR INTERSTATE BRANCHES AND AGENCIES OF FOREIGN BANKS.Notwithstanding paragraph (1) and section 4(h), a foreign bank may, with the approval of the Comptroller of the Currency, establish and operate a Federal branch or Federal agency or, with the approval of the Board and the appropriate State bank supervisor, a State branch or State agency in any State outside of the foreign bank's home State if—

“(A) the establishment and operation of a branch or agency is expressly permitted by the State in which the branch or agency is to be established; and

"(B) in the case of a Federal or State branch, the branch receives only such deposits as would be permissible for a corporation organized under section 25(a) of the Federal Reserve Act.".

(b) TREATMENT OF UNITED STATES BANKING SUBSIDIARIES.-Section 5 of the International Banking Act of 1978 (12 U.S.C. 3103) is amended by adding at the end the following:

"(d) TREATMENT OF UNITED STATES SUBSIDIARY OF A FOREIGN BANK.-A foreign bank that has a domestic subsidiary within the United States may establish Federal and State branches and agencies outside its home State to the extent permitted under section 5155(d) of the Revised Statutes and section 18(d) of the Federal Deposit Insurance Act.".

(c) HOME STATE DETERMINATIONS.—

(1) METHOD OF DETERMINING.-Section 4(h) of the International Banking Act of 1978 (12 U.S.C. 3102(h)) is amended

(A) by striking the phrase "in the State in which such branch or agency is located"; and

(B) by adding at the end the following sentence: "For the purposes of section 5155(c) of the Revised Statutes (12 U.S.C. 36(c)), the home State of a foreign bank shall be its home State as determined under section 5(c).".

(2) SINGLE STATE DETERMINATIONS.-Section 5(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 3103(c)) is amended to read as follows:

"(c) DETERMINATION OF HOME STATE OF FOREIGN BANK.-For the purposes of this section

"(1) the home State of a foreign bank that has branches, agencies, subsidiary commercial lending companies, or subsidiary banks, or any combination thereof, in more than 1 State, is the 1 of those States elected of the foreign bank, or, in default of such election, by the Board; and

"(2) the home State of a foreign bank that has branches, agencies, subsidiary commercial lending companies, or subsidiary banks, or any combination thereof, in only 1 State, is that State.".

SEC. 205. PERMISSIBLE CONSOLIDATION.

Section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842) is amended by adding at the end the following subsection:

"(h) PERMISSIBLE CONSOLIDATION.—

"(1) IN GENERAL.-Except as provided in subsection (d)(1), a bank holding company having subsidiary banks located in more than 1 State may combine 2 or more of such banks into a single bank by means of merger, consolidation, or other transaction on or after 18 months from the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991. Notwithstanding any other provision of Federal law or any provision of State law, any consolidation effected in accordance with this subsection shall be permissible within a State as of 18 months after the date of enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991, unless such State has enacted a law in accordance with section 5155(d)(2)(A) of the Revised Statutes or section 18(d)(5)(A) of the Federal Deposit Insurance Act that applies equally to national and State banks and that expressly prohibits all out-of-State banks from establishing or acquiring branches located in that State.

"(2) ADDITIONAL BRANCHES.-The consolidated bank may, subject to compliance with all applicable Federal or State laws relating to the establishment, acquisition or operation of a branch, establish, acquire and operate additional branches at any location where the consolidated bank or a preexisting bank could, if they had not been parties to such consolidation, have established or acquired and operated a branch, unless precluded by any provision of State law in existence on the date of the enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991.

"(3) EFFECT OF STATE PROHIBITION OF BRANCHING.-If, during the period beginning 18 months from the date of the enactment of the Federal Deposit Insurance Corporation Improvement Act of 1991 and ending on the expiration of 3 years from such date of enactment, a consolidation authorized by paragraph (1) is effected resulting in the conversion of a bank into a branch located in a State which, after such consolidation, has enacted a law that applies equally to national and State banks and that expressly prohibits all out-of-State banks from establishing or acquiring branches located in that State, then such branch shall, under regulations of the Federal or State banking authority having jurisdiction of the bank prior to its conversion into a branch, be promptly converted bank back into the bank as it existed prior to such consolidation.

"(4) APPLICABLE LAW.-Any branch of a national bank established or acquired in connection with a consolidation or other transaction under paragraph (1) shall be subject to the laws of the host State with respect to intrastate branching, consumer protection, fair lending, and community reinvestment as if it were a branch of a bank chartered by that State, unless such State law, is preempted by Federal law regarding the same subject. There shall be no discriminatory effect in the application of such laws between a branch of a bank chartered by the host State and in-State branches of out-of-State national banks. Such State laws shall be enforced, with respect to branches of national banks by the Comptroller of the Currency. All other laws of the host State shall apply as if the branch was a national bank situated in that State.".

SEC. 206. MINIMUM CAPITAL REQUIREMENT FOR NEW INTERSTATE BANKING AND

BRANCHING POWERS.

(a) IN GENERAL.-Except as provided in subsection (b), the amendments made by sections 201, 202, 203, 204, and 205 shall not apply with respect to any insured depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act) unless the depository institution has

(1) a ratio of tier 1 capital to total assets of not less than 6 percent; and

(2) a ratio of total capital to total assets of not less than 8 percent.

(b) REGULATOR DISCRETION.—

(1) IN GENERAL.-Subject to paragraph (2) and with the approval of the Federal Deposit Insurance Corporation and the appropriate Federal banking agency, any financial services holding company which controlled any full-service bank subsidiary on May 15, 1991, may convert such bank into a branch of any out-of-State bank pursuant to the amendments made by this title without regard to the minimum capital requirements of this section.

(2) RESTRICTIONS.-No branch of a bank which results from a conversion described in paragraph (1) may have total assets in excess of the average amount held by such branch during May 1991, so long as such bank fails to meet the minimum capital requirement established by this section.

SEC. 207. STATE-BY-STATE CRA EVALUATIONS OF DEPOSITORY INSTITUTIONS WITH INTERSTATE BRANCHES. Section 807 of the Community Reinvestment Act of 1977 (12 U.S.C. 2906) is amended by adding the following new subsection: "(d) INSTITUTIONS WITH INTERSTATE BRANCHES.

"(1) STATE-BY-STATE EVALUATION.-In the case of a regulated financial institution which maintains 1 or more domestic branches located outside the State in which the institution's principal place of business is located (hereafter in this subsection referred to as the 'home State'), the appropriate Federal financial supervisory agency shall prepare

"(A) a written evaluation of the entire institution's record of performance under this Act, as required by subsections (a), (b), and (c) of this section; and

"(B) for each State in which the institution maintains 1 or more domestic branches (including the institution's home State), a separate written evaluation of the institution's record of performance within such State under this Act, as required by subparagraphs (A) and (B) of subsection (b)(1) of this section.

"(2) CONTENT OF STATE LEVEL EVALUATION. A written evaluation prepared pursuant to paragraph (1)(B) of this subsection shall report the information required by such paragraph separately for each metropolitan area (as defined by the appropriate Federal financial supervisory agency) in

which the regulated financial institution maintains 1 or more domestic branch offices and separately for the nonmetropolitan portion of the State if the institution maintains 1 or more domestic branch offices in such nonmetropolitan area.".

SEC. 208. PROHIBITION AGAINST DEPOSIT PRODUCTION OFFICES.

(a) REGULATIONS.-Before the end of the 120-day period beginning on the date of the enactment of this Act, the appropriate Federal banking agency shall prescribe regulations which prohibit any person from using any authority to engage in interstate branching pursuant to this title or any amendment made by this title to any other provision of law primarily for the purpose of deposit production.

(b) GUIDELINES FOR MEETING CREDIT NEEDS.-Regulations issued under subsection (a) shall include guidelines to ensure that each interstate branch meets the credit needs of the community and market area in which the branch operates.

(c) LIMITATION ON OUT-OF-STATE LOANS.(1) LIMITATION.-Regulations issued under subsection (a) shall require that if the percentage of outstanding loans made by an interstate branch to borrowers located in the host State of, or market area served by, the branch is less than half the average of such percentage for all Federal depository institutions and State depository institutions having their principal place of operations in the host State or that market area

(A) the appropriate Federal banking agency for the branch shall review the loan portfolio of the branch and determine whether the branch is reasonably meeting the credit needs of the community and market area in which the branch operates; and

(B) if the agency determines that the branch is not reasonably meeting those needs

(i) the branch shall be closed, and

(ii) the person which established the branch may not open a new branch in that State unless the person provides reasonable assurances to the satisfaction of the appropriate Federal banking agency that the new branch will reasonably meet the credit needs of the community and market area in which the new branch will operate.

(2) CONSIDERATIONS.-In making a determination under paragraph (1)(A) regarding an interstate branch, the appropriate Federal banking agency shall consider

(A) whether the branch was acquired as part of the purchase of a failed or failing depository institution;

(B) whether the branch has a higher concentration of commercial and credit card lending; and

(C) the ratings received by the branch in evaluations under the Community Reinvestment Act of 1977.

(d) APPLICATION.-This section shall not apply to any interstate branch acquired before June 25, 1991, as part of any consolidation or merger of depository institutions.

(e) DEFINITIONS.-For the purposes of this section—

(1) APPROPRIATE FEDERAL BANKING AGENCY.-The term "appropriate Federal banking agency" has the meaning that term has in section 3 of the Federal Deposit Insurance Act.

(2) BRANCH.-The term "branch" means any office, agency, or other place of business located in any State at which deposits are received, checks paid, or money lent.

(3) FEDERAL DEPOSITORY INSTITUTION AND STATE DEPOSITORY INSTITUTION.-Each of the terms "Federal depository institution" and "State depository institution" has the meaning given that term in section 3 of the Federal Deposit Insurance Act.

(4) HOST STATE DEFINED.-The term "host State" means the State in which a bank es

tablishes or maintains a branch, other than

(A) the State in which the bank is chartered and engaging in banking business, or (B) in the case of

(i) a national bank, the State in which the principal place of business of such association is located, and

(ii) a bank holding company, the State in which the total deposits of all bank subsidiaries of such company is the largest,

as applicable under the amendments made. by this title.

(5) INTERSTATE BRANCH.-The term "interstate branch" means a branch established pursuant to the authority referred to in subsection (a).

(6) PRINCIPAL PLACE OF OPERATIONS.-The term "principal place of operations" means the State in which the total deposits of all bank subsidiaries of a person are largest.

(7) STATE DEFINED.-The term "State" has the meaning given to such term in section 3 of the Federal Deposit Insurance Act. SEC. 209. RESTATEMENT OF EXISTING LAW.

No provision of this title and no amendment made by this title to any other provision of law shall be construed as affecting in any way the right of any State, or any political subdivision of any State, to impose or maintain a nondiscriminatory franchise tax or other nonproperty tax instead of a franchise tax in accordance with section 3124 of title 31, United States Code. SEC. 210. VISITORIAL POWERS.

Section 5240 of the Revised Statutes (12 U.S.C. 481 et seq.) is amended—

(1) by inserting before the 6th undesignated paragraph (12 U.S.C. 484) the following new paragraph heading:

"(6) VISITORIAL POWERS.-";

(2) by moving the left margins of subparagraphs (A) and (B) of paragraph (6) (as so designated by the amendment made by paragraph (1) of this section) 4 ems to the right; and

(3) by inserting after subparagraph (B) of such paragraph the following new subparagraph:

"(C) STATE VISITATIONS AUTHORIZED FOR TAX COMPLIANCE PURPOSES.-Notwithstanding subparagraph (A), any lawfully authorized auditor, examiner, or other representative acting on behalf of any State agency charged with the administration and collection of taxes imposed by a State or any political subdivision of a State may review at reasonable times those books and records of any Federal depository institution (as defined in section 3(c)(4) of the Federal Deposit Insurance Act) or any Federal credit union (as defined in section 101(1) of the Federal Credit Union Act) which are reasonably necessary to ensure compliance with the tax laws of the State or political subdivision.". Subtitle B-Bank Insurance Sales Reform SEC. 211. DELAWARE LOOPHOLE CLOSER.

The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended by redesignating section 12 as section 13 and inserting after section 11 the following new section: "SEC. 12. INSURANCE ACTIVITIES OF BANK SUB

SIDIARIES OF HOLDING COMPANIES. "(a) IN GENERAL.-No bank holding company may permit any bank subsidiary of such company, or any subsidiary of such bank, to provide insurance as a principal, agent, or broker beyond the borders of the State in which the subsidiary bank is chartered unless such insurance activities in the nonchartering State are specifically authorized by the statutes of that State, by language to that effect and not merely by implication.

"(b) CONTINUATION OF PRIOR ACTIVITIES.— Notwithstanding subparagraph (A) or section 4(1)(5), any bank holding company (or any

successor of such company), or any bank subsidiary of a bank holding company (and any subsidiary of any such bank subsidiary) may continue insurance activities otherwise prohibited by subparagraph (A) on an interstate basis

"(1) so long as those coverages insure against the same types of risks, or are otherwise functionally equivalent to, coverages provided on or before June 1, 1991;

"(2) to the extent that those activities were lawful and not the subject of legal challenge on that date; and

"(3) subject to State regulation and control.".

SEC. 212. TOWN OF 5,000 LOOPHOLE CLOSER.

(a) IN GENERAL.-Chapter 1 of title LXII of the Revised Statutes is amended by inserting after section 5136A (12 U.S.C. 25a) following new section:

"SEC. 5136B. LIMITED INSURANCE ACTIVITIES FOR NATIONAL BANKS.

"(a) LIMITED INSURANCE ACTIVITIES FOR NATIONAL BANKS LOCATED IN SMALL TOWNS.-In addition to the powers now vested by law in national banks organized under the laws of the United States, any national bank that is located in a place that has a population not exceeding 5,000 (as shown by the preceding decennial census) may engage in insurance sales and insurance solicitation activities if

"(1) the sales and solicitation activities are confined to that place of 5,000 or less and the adjacent rural unincorporated areas closest to that place; and

"(2) the insurance is sold only to

"(A) individuals who are residents of, or are employed in, any place (including any unincorporated rural area) in such State that has a population not exceeding 5,000 (as shown by the preceding decennial census); "(B) persons

"(i) who are engaged in business in any place in such State that has a population not exceeding 5,000 (as shown by the preceding decennial census) and have a principal business office in any such place; or

"(ii) whose principal headquarters is located in any such place,

with respect to employees (including owneremployees) who reside in or are principally employed in such place, real property located in such place, personal property which is principally used in such place, or services provided by persons located in such place; and

"(C) any other person if the insurance is issued with respect to

"(i) real property located in any place in such State that has a population not exceeding 5,000 (as shown by the preceding decennial census); or

"(ii) personal property which is principally used in such place.

"(b) CERTAIN ACTIVITIES PROHIBITED IN CONNECTION WITH INSURANCE ACTIVITIES.-No national bank which sells insurance pursuant to subsection (a) may

"(1) assume or guarantee the payment of any premium on any insurance policy issued through the agency of the bank by the insurance company for which the bank is acting as agent; or

"(2) guarantee the truth of any statement made by an insurance customer in filing such customer's application for insurance.

"(c) LIMITATION ON TITLE INSURANCE ACTIVITIES.-No national bank may engage, directly or through a subsidiary, in any activity involving the underwriting or sale of title insurance other than title insurance agency activities in which such bank was actively and lawfully engaged, directly or through a subsidiary, as of June 1, 1991.". (b) REPEAL.

(1) IN GENERAL.-To the extent the paragraph described in paragraph (2) is in effect

on the day before the date of the enactment of this Act (whether as a paragraph of the Act described in such paragraph or as a provision of any other law), such paragraph shall cease to be effective as of such date of enactment.

(2) PARAGRAPH DESCRIBED.—The paragraph described in this paragraph is the paragraph contained in the Act entitled "An Act to amend certain sections of the Act entitled 'Federal reserve Act' approved December twenty-third, nineteen hundred and thirteen" and approved September 7, 1916 (39 Stat. 753; omitted from the United States Code) which

(A) relates to the authority of national banks in small communities to act as insurance agents and real estate brokers; and

(B) begins "That in addition to the powers now vested by law in national banking associations".

(c) CLERICAL AMENDMENT.-The table of sections for chapter 1 of title LXII of the Revised Statutes is amended by inserting after the item relating to section 5136A the following new item:

"5136B. Limited insurance activities for national banks.".

Subtitle C-Bank Real Estate Reform SEC. 221. REAL ESTATE PROTECTIONS. Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) is amended by adding at the end the following new subsection: "(j) REAL ESTATE ACTIVITIES.—

"(1) IN GENERAL.-For purposes of subsection (c)(8), real estate investment, management, or development and the purchase and sale of real estate as principal or broker shall not be activities so closely related to banking as to be a proper incident thereto.

"(2) CONTINUATION OF PRIOR ACTIVITIES.— Notwithstanding paragraph (1), any activity described in such paragraph that the Board has determined, before May 3, 1991, by a regulation or order that is in effect on December 31, 1992, to be so closely related to banking as to be a proper incident thereto may continue to be treated by the Board as a permissible activity for purposes of subsection (c)(8).".

After some further time,

The SPEAKER resumed the Chair. When Mr. CARR, Chairman, pursuant to House Resolution 277 reported the bill back to the House with an amendment adopted by the Committee.

The previous question having been ordered by said resolution.

The following amendment, reported from the Committee of the the Whole House on the state of the Union, was agreed to:

Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

This Act may be cited as the "Federal Deposit Insurance Corporation Improvement Act of 1991".

TITLE I-SAFETY AND SOUNDNESS Subtitle A-Deposit Insurance Funds SEC. 101. FUNDING FOR THE FEDERAL DEPOSIT INSURANCE FUNDS.

Section 14(a) of the Federal Deposit Insurance Act (12 U.S.C. 1824(a)) is amended by striking "$5,000,000,000" and inserting "$30,000,000,000".

SEC. 102. LIMITATION ON OUTSTANDING BORROWING.

(a) IN GENERAL.-Section 15(c) of the Federal Deposit Insurance Act (12 U.S.C. 1825(c)) is amended by striking paragraphs (5) and (6) and inserting the following new paragraphs: "(5) MAXIMUM AMOUNT LIMITATION ON OUTSTANDING OBLIGATIONS.-Notwithstanding any other provisions of this Act, the aggregate amount of obligations of the Bank Insurance Fund or Savings Association Insurance Fund, respectively, outstanding at any time may not exceed the sum of

"(A) the amount of cash or the equivalent of cash held by the Bank Insurance Fund or Savings Association Insurance Fund, respectively;

"(B) the amount which is equal to 90 percent of the Corporation's estimate of the fair market value of assets held by the Bank Insurance Fund or the Savings Association Insurance Fund, respectively, other than assets described in subparagraph (A); and

"(C) the total of the amounts authorized to be borrowed from the Secretary of the Treasury pursuant to section 14(a).

"(6) OBLIGATION DEFINED.-For purposes of paragraph (5), the the term term 'obligation' includes

"(A) any guarantee issued by the Corporation;

"(B) any amount borrowed pursuant to section 14; and

"(C) any other obligation for which the Corporation has a direct or contingent liability to pay any amount."

(b) GAO REPORTS.—

(1) QUARTERLY REPORTING.-The Comptroller General of the United States shall submit

a report each calendar quarter on the Federal Deposit Insurance Corporation's compliance with section 15(c)(5) of the Federal Deposit Insurance Act for the preceding quarter to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(2) ANALYSES TO BE INCLUDED.-Each report submitted under paragraph (1) shall include

(A) an analysis of the performance of the Federal Deposit Insurance Corporation in meeting any repayment schedule under section 14(c) of the Federal Deposit Insurance Act (as added by section 103 of this Act); and

(B) an analysis of the actual recovery on asset sales compared to the estimated fair market value of the assets as determined for the purposes of section 15(c)(5)(B) of such Act.

(c) TECHNICAL AND CONFORMING AMENDMENT.-Section 15(c) of the Federal Deposit Insurance Act (12 U.S.C. 1825(c)) is amended by striking paragraph (7).

SEC. 103. REPAYMENT SCHEDULE.

(a) IN GENERAL.-Section 14 of the Federal Deposit Insurance Act (12 U.S.C. 1824) is amended by adding at the end the following new subsection:

"(c) REPAYMENT SCHEDULES REQUIRED FOR ANY BORROWING.

"(1) IN GENERAL.-No amount may be provided by the Secretary of the Treasury to the Corporation under subsection (a) unless an agreement is in effect between the Secretary and the Corporation which

"(A) provides a schedule for the repayment of the outstanding amount of any borrowing under such subsection; and

"(B) demonstrates that income to the Corporation from assessments under this Act will be sufficient to amortize the outstanding balance within the period established in the repayment schedule and pay the interest accruing on such balance.

"(2) CONSULTATION WITH AND REPORT TO CONGRESS. The Secretary of the Treasury and the Corporation shall

"(A) consult with the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the terms of any repayment schedule agreement described in paragraph (1) relating to repayment, including terms relating to any emergency special assessment under section 7(b)(7); and

"(B) submit a copy of each repayment schedule agreement entered into under paragraph (1) to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate before the end of the 30-day period beginning on the date any amount is provided by the Secretary of the Treasury to the Corporation under subsection (a)."

(b) EMERGENCY SPECIAL ASSESSMENTS.— Section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)) is amended by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (10), respectively, and by inserting after paragraph (6) the following new paragraph:

"(7) EMERGENCY SPECIAL ASSESSMENTS.-In addition to the assessments imposed on insured depository institutions under other provisions of this subsection, the Corporation may impose 1 or more special assessments on insured depository institutions in an amount determined by the Corporation if the amount of any such assessment"(A) is necessary

"(i) to provide sufficient assessment income to repay amounts borrowed from the Secretary of the Treasury under section 14(a) in accordance with the repayment schedule