An amendment numbered 1 printed in House Report 108-439 to limit de novo branching for ILCs to those whose business is more than 85% financial in nature and, in the case of ILCs whose business is less than 85% financial in nature, limit branching to those ILCs who had Federal deposit insurance before October 1, 2003; make technical revisions to section 303 requested by the NCUA; make technical revisions to section 213 requested by OTS; strike section 107; strike section 214; strike section 613; and make technical changes to section 405 requested by the SEC.

1. 1

   Change 1: Strikes page 9, line 3 through page 10, line 2

   StrikesPrinted page

   Removes page 9, line 3 through page 10, line 2 of the printed bill. See that page

   Original wording

   Page 9, strike line 3 and all that follows through page 10, line 2

2. 2

   Change 2: Replaces “main” with “home”

   ReplacesPage 31, line 2Printed page

   [struck: main][inserted: home]

   Original wording

   Page 31, line 2, strike “main” and insert “home”.

3. 3

   Change 3: Strikes page 31, line 3 through page 32, line 13

   StrikesPrinted page

   Removes page 31, line 3 through page 32, line 13 of the printed bill. See that page

   Original wording

   Page 31, strike line 3 and all that follows through page 32, line 13

4. 4

   Change 4: Rewrites page 37, lines 16–17

   ReplacesPrinted page

   Removes page 37, lines 16–17 of the printed bill. See that page

   Inserted: (b) Additional Investment Authority.--

   Original wording

   Page 37, strike lines 16 and 17 and insert the following new heading:

5. 5

   Change 5: Replaces “A Federal” with “In addition to any investments otherwise authorized, a Federal”

   ReplacesPage 37, line 18Printed page

   [struck: A Federal][inserted: In addition to any investments otherwise authorized, a Federal]

   Original wording

   Page 37, line 18, strike “A Federal” and insert “In addition to any investments otherwise authorized, a Federal”.

6. 6

   Change 6: Inserts new text on page 47, line 5

   InsertsPrinted page

   Inserted: (2) Interstate branching by subsidiaries of commercial firms prohibited.--Section 18(d)(3)) of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)(3)) is amended by adding at the end the following new subparagraph:

   Inserted: "(C) Interstate branching by subsidiaries of commercial firms prohibited.--

   Inserted: "(i) In general.--If the appropriate State bank supervisor of the home State of any industrial loan company, industrial bank, or other institution described in section 2(c)(2)(H) of the Bank Holding Company Act of 1956, or the appropriate State bank supervisor of any host State with respect to such company, bank, or institution, determines that such company, bank, or institution is controlled, directly or indirectly, by a commercial firm, such company, bank, or institution may not acquire, establish, or operate a branch in such host State.

   Inserted: "(ii) Commercial firm defined.--For purposes of this subsection, the term 'commercial firm' means any entity at least 15 percent of the annual gross revenues of which on a consolidated basis, including all affiliates of the entity, were derived from engaging, on an on-going basis, in activities that are not financial in nature or incidental to a financial activity during at least 3 of the prior 4 calendar quarters.

   Inserted: "(iii) Grandfathered institutions.--Clause (i) shall not apply with respect to any industrial loan company, industrial bank, or other institution described in section 2(c)(2)(H) of the Bank Holding Company Act of 1956--

   Inserted: "(I) which became an insured depository institution before October 1, 2003 or pursuant to an application for deposit insurance which was approved by the Corporation before such date; and

   Inserted: "(II) with respect to which there is no change in control, directly or indirectly, of the company, bank, or institution after September 30, 2003, that requires an application under subsection (c), section 7(j), section 3 of the Bank Holding Company Act of 1956, or section 10 of the Home Owners' Loan Act.

   Inserted: "(iv) Transition provision.--Any divestiture required under this subparagraph of a branch in a host State shall be completed as quickly as is reasonably possible.

   Inserted: "(v) Corporate reorganizations permitted.--The acquisition of direct or indirect control of the company, bank, or institution referred to in clause (iii)(II) shall not be treated as a 'change in control' for purposes of such clause if the company acquiring control is itself directly or indirectly controlled by a company that was an affiliate of such company, bank, or institution on the date referred to in clause (iii)(II), and remained an affiliate at all times after such date.".

   Inserted: (3) Technical and conforming amendments.--Section 18(d)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)(4)) is amended--

   Inserted: (A) in subparagraph (A) by striking "Subject to subparagraph (B)" and inserting "Subject to subparagraph (B) and paragraph (3)(C)"; and

   Inserted: (B) in subparagraphs (D) and (E), by striking "The term" and inserting "For purposes of this subsection, the term".

   Original wording

   Page 47, after line 5, insert the following new paragraphs (and redesignate the subsequent paragraph accordingly):

7. 7

   Change 7: Inserts “or are applicable to an insured State nonmember bank under section 18(d)(3) of the Federa…” after “Revised Statutes of the United States”

   InsertsPage 47, line 21Printed page

   …Revised Statutes of the United States[inserted: or are applicable to an insured State nonmember bank under section 18(d)(3) of the Federal Deposit Insurance Act]…

   Original wording

   Page 47, line 21, insert “or are applicable to an insured State nonmember bank under section 18(d)(3) of the Federal Deposit Insurance Act” after “Revised Statutes of the United States”.

8. 8

   Change 8: Inserts “and inserting the following new paragraph” before the semicolon at the end

   InsertsPage 51, line 4Printed page

   Inserted: and inserting the following new paragraph

   Original wording

   Page 51, line 4, insert before the semicolon at the end “and inserting the following new paragraph”.

9. 9

   Change 9: Inserts new text on page 51, line 4

   InsertsPrinted page

   Inserted: (5) Applicability to industrial loan companies.--No provision of this section shall be construed as authorizing the approval of any transaction involving a industrial loan company, industrial bank, or other institution described in section 2(c)(2)(H) of the Bank Holding Company Act of 1956, or the acquisition, establishment, or operation of a branch by any such company, bank, or institution, that is not allowed under section 18(d)(3).

   Original wording

   Page 51, after line 4, insert the following new paragraph:

10. 10

    Change 10: Inserts “(i)” after “section 38(e)(2)(E)”

    InsertsPage 58, line 19Printed page

    In H.R. 1375 · Reported in House

    "SEC. 49. ENFORCEMENT OF AGREEMENTS.

    "(a) In General.--Notwithstanding clause (i) or (ii) of section 8(b)(6)(A) or section 38(e)(2)(E)[inserted: (i)], an appropriate Federal banking agency may enforce, under section 8, the terms of--

    "(1) any condition imposed in writing by the agency on a depository institution or an institution-affiliated party (including a bank holding company) in connection with any action on any application, notice, or other request concerning a depository institution; or

    Original wording

    Page 58, line 19, insert “(i)” after “section 38(e)(2)(E)”.

Read automatically from the Congressional Record. Check the original before relying on it.

As printed