Competitive Equality Banking Act of 1987

(Conference report filed in House, H. Rept. 100-261)

Competitive Equality Banking Act of 1987 - Title I: Financial Institutions Competitive Equality - Competitive Equality Amendments of 1987 - Amends the Bank Holding Company Act of 1956 (BHCA) to redefine the term "bank" for the purposes of such Act to include any institution which is insured by the Federal Deposit Insurance Corporation (FDIC) or which: (1) accepts demand deposits or other deposits that may be withdrawn by check or similar means for payment to a third party; and (2) makes commercial loans. Excludes from the definition of a "bank" for purposes of such Act: (1) foreign banks (which would meet such definition solely because such bank has a branch in the United States); (2) insured thrift institutions; (3) organizations which do not do business in the United States except as an incident to activities outside the United States; (4) certain institutions that function solely in a trust or fiduciary capacity; (5) credit unions; (6) certain institutions which engage only in credit card operations; (7) Edge Act or Agreement corporations; (8) industrial loan companies; (9) the Investors Fiduciary Trust Company of Kansas City, Missouri; and (10) certain savings banks which are associated with the Great Western Financial Corporation.

Defines "thrift institution" to mean: (1) any domestic building and loan or savings and loan; (2) any cooperative bank without capital stock organized and operated for mututal purposes and without profit; (3) any federal savings bank; and (4) any registered State-charactered savings bank.

Defines "qualified savings bank" to mean: (1) any savings bank which was organized on or before March 5, 1987; (2) any cooperative bank insured by the FDIC; and (3) any interim savings bank that is established to facilitate a corporate reorganization or the formation of a holding company, involving a savings bank which was organized on or before March 5, 1987.

Requires any company that becomes a holding company as a result of the enactment of this Act to bring any institution acquired after March 5, 1987, into compliance with the BHCA.

Grandfathers companies that controlled such entities that become "banks" under the definition of this Act (nonbank banks) as of March 5, 1987, in order that such companies shall not be limited by provisions of the Bank Holding Company Act provided that the parent company does not: (1) obtain control of an additional bank or thrift institution; or (2) acquire more than five percent of the shares or assets of such a bank or thrift institution. (Permits such acquisitions under specified circumstances.) Specifies that until the Congress has enacted proposals concerning all banks and bank holding companies, a bank may not: (1) engage in any activity in which it was not lawfully engaged as of March 5, 1987; (2) engage in any joint marketing with an affiliate in which it was not engaged as of March 5, 1987; (3) permit any overdraft on behalf of an affiliate, or overdraw its own account at a Federal Reserve Bank on behalf of an affiliate; or (4) increase its assets at an annual rate of more than seven percent.

Prohibits an institution which becomes a bank under the revised definition of this Act and is controlled by a bank holding company from: (1) engaging in activities that would have made it a bank under prior definitions of "bank;" or (2) increasing the number of locations from which it conducts business after March 5, 1987.

Applies the anti-tying restrictions of the BHCA and the insider and preferential lending restrictions of the Federal Reserve Act to certain nonbank companies and institutions.

Allows any savings bank subsidiary of a bank holding company to engage in any activity in which State chartered savings banks may engage. Sets forth certain limits with respect to savings bank subsidiaries of bank holding companies.

Amends the Federal Reserve Act to limit the type of transactions a member bank and its subsidiaries may engage in with an affiliate to those which are under substantially the same terms and conditions as those prevailing at the time for comparable transactions with nonaffiliated companies. Makes such limitation applicable to FDIC-insured nonmember banks. States that such restrictions shall not apply to the acquisition pursuant to the pending application of Midland Bank of London, England.

Provides that any company, other than a bank, which directly or indirectly acquires an Edge Act or Agreement corporation after March 5, 1987, should be considered a bank holding company for all purposes of the Bank Holding Company Act except for those provisions relating to the acquisition of additional banks.

Amends the Federal Deposit Insurance Act to apply the restrictions relating to affiliation between member banks and organizations engaged principally in certain securities activities and to employ relationships involving a member bank and a person or organization engaged in certain securities activities to FDIC-insured nonmember banks. Sets forth certain exceptions.

Amends the National Housing Act to revise the definition of "bank" and "bank holding company" to have the same meaning as in the Bank Holding Company Act.

Provides that no savings and loan holding company which is not an insured institution may commence, or continue for more than two years after the date it becomes a holding company, any activity other than those presently permissible for a multiple savings and loan holding company with certain exceptions. Exempts from such restrictions unitary savings and loan holding companies whose subsidiary thrifts meet a qualified thrift lender test (thrifts which devote at least 60 percent of their assets to housing and related activities). Grandfathers unitary savings and loan holding companies formed before March 5, 1987, provided certain conditions are met.

Provides that prohibitions on inter-affiliate transactions currently applicable to savings and loan holding companies shall not apply to transactions between a subsidiary thrift institution and affiliates engaged in activities permissible for a bank holding company under the Bank Holding Company Act. Provides that such transactions shall be subject to the restrictions of the Federal Reserve Act. Prohibits diversified savings and loan holding companies and their subsidiary thrift institutions from engaging in joint marketing activities.

Provides that a State-chartered insured institution that is a subsidiary of a savings and loan holding company shall be subject to the anti-tying restrictions of the Home Owner's Loan Act of 1933 to the same extent and in the same manner as a Federal Association.

Establishes a procedure under which companies that own only State-chartered savings banks, which are normally treated as "banks" under the Bank Holding Company Act, may be regulated as savings and loan holding companies rather than as bank holding companies under the Bank Holding Company Act.

Provides additional exceptions to the general rule prohibiting the FSLIC from approving the interstate acquisition of thrift institutions.

Amends the National Housing act to subject emergency acquisitions to the qualified thrift lender test.

Amends the Federal Home Loan Bank Act to provide reduced eligibility for advances for certain members who are not qualified lenders.

Amends the National Housing Act to provide that provisions of the Banking Act of 1933 relating to affiliations between member banks and organizations engaged principally in certain securities activities and relating to certain officer, director, or employee relationships involving a member bank and a person or organization primarily engaged in certain securities activities shall be applicable to every insured institution in the same manner and to the extent as if such insured institution were a member bank.

Allows a thrift institution operating in mutual form to reorganize into a holding company by: (1) forming an interim stock savings bank to be wholly owned by the mutual institution; and (2) transferring its assets and liabilities to the interim bank. Specifies that the institution seeking to reorganize in such manner must provide the Federal Home Loan Bank Board 60 days' prior written notice. Deems such an application to be approved unless the Bank Board disapproves it within the 60-day period. Amends the Bank Holding Company Act of 1956 to allow an FDIC-insured savings bank operating in mutual form to reorganize so as to form a holding company under the same procedures. Provides that a corporation organized as such a holding company shall be regulated on the same terms and be subject to the same limitations as a stock savings bank holding company (as specified under this Act).

Authorizes national banks to invest in property for lease financing transactions on a net lease basis, provided that such investment may not exceed ten percent of the assets of the association.

States that nonprofit organizations operated for political purposes are eligible to own negotiable order of withdrawal accounts.

Amends the National Housing Act to exempt certain thrift institutions from specified affiliate transaction restrictions. Lists certain factors which must be considered by the Corporation prior to the approval of an acquisition or change in control of an insured institution.

Title II: Moratorium on Certain Nonbanking Activities - Imposes a moratorium, beginning March 6, 1987, and continuing through March 1, 1988, on: (1) the expansion of foreign bank activities (excludes domestically controlled affiliates covered in 1978 from such moratorium); (2) the approval of the acquisition by any bank holding company, insured bank, or foreign bank of any entity engaged in the floatation, underwriting, public sale, or distribution of securities; (3) the approval of the acquisition by any bank holding company, insured bank, or foreign bank of any entity engaged in securities activities not legally authorized prior to March 5, 1987, or engaged in the operation of a nondealer marketplace in options; (4) the issuance of any rule, regulation, or order that would have the effect of increasing the insurance powers of banks, bank holding companies, or their subsidiaries; (5) the approval of the acquisition by a bank holding company of any company, including a State-chartered bank, unless the bank holding company has agreed to limit the insurance activities of that company; (6) expansion by a national bank of its insurance activities into places where it was not conducting such activities as of March 5, 1987; and (7) the issuance of any rule, regulation, or order that would have the effect of increasing real estate powers of banks or bank holding companies or their banking or nonbanking subsidiaries.

Expresses the intent of the Congress to conduct a review of banking and financial laws, and to make decisions on the need for financial restructuring legislation before the moratorium expires.

Title III: FSLIC Recapitalization - Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987 - Amends the Federal Home Loan Bank Act to direct the Federal Home Loan Bank Board (Board) to charter a corporation to be known as the Financing Corporation. Sets forth provisions concerning the membership, administration, and powers of such corporation.

Requires each Federal Home Loan Bank to invest in the nonvoting capital stock of the Financing Corporation at such times and in such amounts as the Board may prescribe. Limits the aggregate amount of funds invested by all Federal Home Loan Banks in such capital stock. Limits the amount of funds which such Federal Home Loan Bank shall invest based on the reserves and profits of each Bank. Requires a pro rata distribution among all Federal Home Loan Banks of the amount such Banks are required to invest in the Financing Corporation.

Limits the amount of obligations of the Financing Corporation which may be outstanding at any time. Requires that the net proceeds of any obligations issued by the Financing Corporation be invested in the capital certificates or capital stock issued by the Federal Savings and Loan Insurance Corporation (FSLIC). Grants tax exempt status to any obligations issued by the Financing Corporation.

Authorizes the Financing Corporation to assess, with the approval of the Board, on each insured institution an assessment for each semiannual period equal to one-half of an amount not to exceed one-twelfth of one percent of the aggregate amount of all accounts of insured members of such insured institution for the year in which such semiannual period occurs. Authorizes supplemental assessments with the approval of the Board. Specifies that the total amount of assessments may not exceed interest and financing costs. Directs the Financing Corporation, with the approval of the Board, to assess a termination assessment on any institution which ceases to be an insured institution.

Limits the use and disposition of assets of the Financing Corporation not invested in the FSLIC. Requires the Financing Corporation to invest in and hold in a segregated account a specified amount of zero coupon instruments to assure the repayment of principal on obligations of the Financing Corporation.

Establishes a Federal Savings and Loan Insurance Corporation Industry Advisory Committee. Sets forth provisions concerning the membership, administration, and powers of such Advisory Committee. Requires the Advisory Council to: (1) review quarterly reports and budgets of the FSLIC; and (2) report annually to specified committees of the Congress concerning any reports and recommendations made by the Committee to the Board and the FSLIC during the year. Exempts such Committee from the requirements of the Federal Advisory Committee Act.

Terminates the Financing Corporation and the Advisory Committee as soon as practicable after the earlier of: (1) the date by which all stock purchased by the Financing Corporation in the FSLIC has been retired; or (2) December 31, 2026.

Provides that the Financing Corporation shall be deemed to be a "mixed ownership" government corporation for purposes of the Government Corporations Control Act.

Amends the National Housing Act to authorize the issuance and sale of capital certificates and stock by the FSLIC to the Financing Corporation. Provides that the Financing Corporation shall be the sole purchaser of both capital certificates and the capital stock issued by the FSLIC and that the proceeds from such purchase shall be included as part of the primary reserve of the FSLIC. Prohibits the FSLIC from paying any dividends to the Financing Corporation on the capital certificates and stock.

Requires the FSLIC to establish an equity return account to be funded by contributions by the FSLIC according to a specified formula based on FSLIC reserves. Requires the Financing Corporation: (1) to transfer earnings on any investment of amounts in such equity account to its primary reserve account; and (2) upon maturity of its obligations, to pay off and retire any capital stock using only amounts accumulated in such equity return account.

Reduces the amount of premiums that may be imposed on insured institutions by the FSLIC by an amount equal to assessments imposed by the Financing Corporation.

Amends the Federal Home Loan Bank Act to allow the Board to authorize a Federal Home Loan Bank to declare and pay dividends out of its undivided profits or legal reserves if: (1) the Bank incurs a loss in connection with Financing Corporation stock and has reduced all other reserves to zero; and (2) there is an extraordinary need for member institutions of the bank to receive dividends.

Limits the amounts of special premiums the FSLIC may assess in 1987 through 1991 unless severe pressures exist.

Provides that any security interest granted to a Federal Home Loan Bank by any member of any Federal Home Loan Bank or any affiliate of any such member shall be entitled to priority over the claims of any party other than parties which have obtained a perfected security interest.

Provides a one-year moratorium on the voluntary termination of FSLIC member insured status.

Revises FSLIC report requirements to require the FSLIC to prepare quarterly reports and budgets and to submit semiannual reports and budgets to specified committees of the Congress.

Permits insured institutions to offset secondary reserves against assessments for any premium year beginning after 1987 and before 1993.

Title IV: Thrift Industry Recovery Provisions - Thrift Industry Recovery Act - Amends the Home Owners' Loan Act of 1933 and the National Housing Act to require the Bank Board and the FSLIC to prescribe regulations which: (1) establishes a consistent asset classification system; (2) establish a consistent appraisal standard; and (3) apply generally accepted accounting principles standards to thrift institutions. Authorizes the use of Financial Accounting Standards Board pronouncements 15 and 5 for troubled debt restructuring by thrift institutions.

Directs the Comptroller General to conduct a financial audit of the Federal Asset Disposition Association.

Amends the Home Owners' Loan Act of 1933 and the National Housing Act to require member institutions having a net worth of .5 percent or more to be granted capital forbearance if: (1) the institutions's weak capital conditions resulted from losses recognized on, the nonperforming status of, or the failure of borrowers to remain in compliance with the repayment terms of, loans or participation in loans; (a) adversely affected by economic conditions in a designated economically depressed regions; or (b) made by a minority institution, provided that 50 percent of such institution's loan assets are minority loans and at least 50 percent of such institutions's originated loans are construction or permanent loans for family residents; (2) the institutions's weak capital condition is not the result of imprudent operating practices; and (3) the institution submits a plan to increase capital and agrees to submit regular reports on its progress in meeting its goals under the plan. Provides an additional requirement (that the institution have reasonable prospects of returning to a satisfactory capital level) for institutions having a net worth of less than .5 percent.

Amends the National Housing Act to allow the FSLIC to exercise its authority to purchase capital certificated in any institution participating in the capital recovery program.

Amends the Home Owners' Loan Act of 1933 and the National Housing Act to require the Bank Board and the FSLIC to establish minimum capital requirements for member institutions.

Directs the Bank Board to establish a review and appeal procedure under which any association, insured institution, or member may obtain a review by the principal supervisory agent of any determination made by an examiner, employee, or agent of the Board, the FSLIC, or the Federal Home Loan Bank. Provides for the appointment of a panel of independent arbiters.

Requires the Bank Board to submit a report to the Congress on steps taken to prevent further insolvencies.

Directs the Bank Board to study the feasibility of establishing an asset holding corporation to relieve thrift institutions of the burden of carrying and maintaining troubled real estate assets. Requires the Bank Board to submit a report to specified congressional committees containing the findings and conclusions of the Bank Board with respect to such study.

Requires the Bank Board to submit a report to specified congressional committees containing guidelines: (1) for notice and disapproval procedures for applications to the Bank Board; and (2) to prevent the dumping of assets over which it has direct or indirect control.

Directs the Secretary of the Treasury to consult with the Bank Board on methods for increasing the use of underutilized minority thrift institutions as depositories or financial agents of Federal agencies.

Requires those acting on behalf of an FSLIC-authorized conservator to disclose such relationship when negotiating on behalf of such conservator.

Extends for an additional five years the forbearance previously provided in the acquisition of troubled thrift institutions.

Establishes congressional oversight responsibilities with respect to the panel of independent arbitrators.

Requires the Bank Board to submit reports to specified congressional committees regarding: (1) its existing manpower and talent; (2) its projected manpower; and talent needs for the year; (3) its plans and goals for the year; and (4) its operations, receipts, expenses, and expenditures.

Title V: Financial Institutions Emergency Acquisitions - Financial Institutions Emergency Acquisitions Amendments of 1987 - Amends the Federal Deposit Insurance Act to revise provisions governing interstate acquisitions of troubled banks involving Federal Deposit Insurance Corporation (FDIC) financial assistance. Authorizes an out-of-State bank or holding company to: (1) acquire a bank with total assets of $500,000,000 or more that is in danger of closing as certified by the appropriate Federal or State chartered authority; (2) acquire a holding company that controls insured bank subsidiaries which hold assets equal to at least $500,000,000, represent a third or more of the total assets of all bank subsidaries of such holding company, and are in danger of closing; (3) acquire such subsidiaries and affiliated banks; or (4) establish newly chartered banks in the State where such subsidiaries are chartered to merge with or purchase the assets and assume the liabilities of such subsidiaries and affiliated banks. Permits the FDIC to assist a merger or acquisition of an insured bank only at the request of the bank's directors or trustees. Provides that a bank which receives FDIC troubled bank assistance when it is eligible to be acquired by an out-of-State bank or holding company shall remain eligible for such acquisition so long as such assistance remains outstanding, with FDIC approval.

Requires State bank supervisor approval of emergency acquisitions of banks which are in danger of closing.

Provides that an out-of-State bank holding company which makes such an acquisition shall, two years after such acquisition (unless a shorter period is prescribed by State law), have the same rights to make additional acquisitions and to establish branches as an in-State bank holding company. Prohibits any holding company which makes such an acquisition from being required under State law to divest any other bank or from being prevented from acquiring any other bank or holding company by reason of such acquisition.

Restructures priorities for FDIC authorization of such extraordinary acquisitions to be, in descending order, transactions between: (1) minority-controlled banks; (2) depository institutions of the same type within the same State; (3) institutions of the same type in different States which have reciprocal arrangements authorizing such acquisitions or, if no such arrangements exist, which are contiguous; (4) institutions of the same type in other different States; (5) different types of institutions in the same State; (6) different types of institutions in different States which have reciprocal arrangements authorizing such acquisitions or, if no such arrangements exist, which are contiguous; and (7) different types of institutions in other different States. Prohibits the FDIC from providing acquisition assistance to a holding company subsidiary that is not an insured bank.

Requires the FDIC to include in its annual report to the Congress a report describing extraordinary acquisitions during the preceding year and identifying the number of FDIC-assisted acquisitions.

Amends the Bank Holding Company Act of 1956 to: (1) authorize the Federal Reserve Board to dispense with notice and hearing requirements for the acquisition by a bank holding company of a bank in danger of closing; (2) require the Board to publish in the Federal Register the order approving the acquisition and identifying any nonbanking activities involved in the acquisition; and (3) authorize the Board to reduce the post-approval waiting period to five days or eliminate such period with the concurrence of the Attorney General if the Board finds that immediate action is necessary to prevent the probable failure of a bank in danger of closing as certified by the appropriate Federal or State chartering authority.

Authorizes the FDIC to organize a bridge bank to assume the deposits of, assume the liabilities of, purchase the assets of, and temporarily perform the functions of one or more closed insured banks if the FDIC Board of Directors determines that: (1) the amount necessary to operate the bridge bank will not exceed the cost of liquidating the closed banks; (2) continued operation of the insured banks is essential to the community; or (3) continued operation of the insured banks is in the interest of the depositors of the closed banks and the public. Provides that the bridge bank shall be a national bank, shall have all corporate powers of a national bank, with specified conditions, and shall be insured from the time of its organization. Requires the FDIC, at the direction of its Board of Directors, to: (1) make available sufficient funds for the bridge bank to operate; and (2) cause capital stock to be offered for sale in an amount sufficient to make possible the conduct of business of the bridge bank on a sound basis. Provides for the acquisition of the bridge bank by an out-of-State bank or holding company or by an insured depository institution located in the State where the closed bank was chartered but established by an out-of-State bank or holding company. Directs the FDIC to wind up the affairs of the bridge bank by voluntary dissolution or by the appointment of a receiver, unless the capital stock of the bridge bank is sold or its assets are taken over and its deposits assumed by another insured bank within two years from the date of its organization.

Amends the National Housing Act to provide that when an FDIC-insured bank converts into an institution that is eligible for FSLIC insurance and applies for such insurance, such banks FDIC insurance shall terminate automatically when the FSLIC insurance goes into effect.

Exempts assessments and other income received by the FDIC, the FSLIC, the Federal Home Loan Bank Board, the Comptroller of the Currency, and the National Credit Union Administration from sequestration pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) and apportionment pursuant to the Anti-Deficiency Act.

Requires the FDIC to consider the adverse economic impact resulting from the liquidation of loans of a closed bank. Requires the FDIC to adopt and publich guidelines and procedures to minimize such adverse economic effects.

Encourages the FDIC to exercise its discretionary authority to: (1) work with States which authorize capital pools to save community banks during times of economic distress; and (2) negotiate sales of loans to area banks to prevent further asset devaluation.

Amends the Garn-St. Germain Depository Institutions Act of 1982 to reinstate certain provisions (regarding extraordinary acquisition authority) which expired October 13, 1986, and extends such provisions until October 13, 1990. Extends permanently other provisions of such Act.

Title VI: Expedited Funds Availability - Expedited Funds Availability Act - Act - Establishes specific time limits for funds availability for various types of deposits. Provides for next day availability for cash, the cash portion of a deposit, wire transfers, checks of $100 or less, checks drawn on in-state branches of the receiving depository institution or branches located in the same check processing region, U.S. Treasury checks endorsed only by the payee, State and local treasury checks endorsed only by the payee and deposited in special envelopes at manned branches, cashier's checks, certified checks, teller's checks, and depository checks endorsed only by the payee and deposited in special envelopes at manned branches.

Requires, effective September 1, 1990, that funds deposited in an account of a depository institution by local and in-state checks be available for withdrwal the business day after deposit and that funds deposited by all other checks be available on the fourth business day after deposit. Sets forth a temporary schedule to be in effect until such date. Requires the Board to reduce the established time period for the availability of nonlocal checks to as short a time as possible and equal to the average check processing time under an improved check clearing system. Allows the Board to adjust the time period for certain local checks in special circumstances. Allows a time period extension of one business day for deposits made in institutions in noncontiguous States or territories and by checks drawn on institutions not located in the same State or territory. Sets forth a permanent schedule with respect to deposits made in automated teller machines (ATM's).

Sets forth time limit exceptions and special time limits which shall apply: (1) to new accounts, deposits by checks in excess of $5,000, checks redeposited after being returned, repeated overdrafts, and foreign checks; and (2) under specified emergency conditions.

Authorizes the Board to suspend the applicability of this Act to any classification of checks directly associated with an unacceptable level of losses due to check-related fraud. Requires the Board to transmit a report justifying any suspension to specified congressional committees.

Provides that the availability schedules required by this Act shall not apply to a depository institution which has reasonable cause to believe that a check is uncollectible from the originating deposity institution. Prohibits basing such a determination on any class of checks or persons. Requires any depository institution which claims such reasonable cause to provide immediate written notice to the depositor of such cause and a statement of the day the funds deposited will be available for withdrawal.

Requires a depository institution to meet specified disclosure requirements concerning its general policy on the availability for withdrawal of funds deposited by check. Authorizes the Board to publish model disclosure forms and clauses for common transactions.

Requires interest to accrue on funds deposited in an interest-bearing account of an institution beginning on the business day on which the institution receives provisional credit for such funds. Exempts from such interest requirement: (1) funds deposited by a check which is returned unpaid; and (2) accounts at a credit union which begins the computation of interest or dividends at a later date with respect to all funds and provides notice of such interest payment policy.

States that after-house deposits shall be deemed to have been made on the next business day.

Prohibits any depository institution from freezing funds in an account because other funds deposited in such account by check are not yet available for withdrawal pursuant to this Act.

Directs each institution to inform employees of, and ensure employee compliance with, the requirements of this Act.

Provides that State laws providing for shorter time periods for the availability of funds deposited in a State-chartered institution shall supersede this Act and shall apply to all federally-insured depository institutions located in such State.

Directs the Federal Reserve Board to prescribe regulations to carry out the provisions of this title. Lists certain options to be considered by the Board to improve the check processing system. Grants the Board authority to regulate any aspect of the payment system. Requires the Board to submit a report to the Congress on the implementation of the funds availability schedule. Directs the Board to conduct a study of the electronic clearinghouse process.

Sets forth provisions governing: (1) the administrative enforcement of this Act; and (2) the civil liability of institutions that fail to comply with this Act.

Allows all depository institutions to receive for deposits any evidences of transaction accounts from other depository institutions or from the Federal Reserve Bank without regard to Federal or State branching restrictions.

Title VII: Credit Union Amendments - Credit Union Amendments of 1987 - Amends the Federal Credit Union Act to authorize the National Credit Union Administration (NCUA) to allow second mortgage and home improvement loans for terms longer than 15 years.

Specifies that funds in shares, share certificates, and share draft accounts constitute a member's ownership interest in a credit union. Revises faithful performance bond requirements for credit union employees. Provides that membership officers may be selected from a credit union's membership (currently restricted to the board of directors). Revises provisions concerning the authority of a credit union to expel a member due to nonparticipation.

Allows the NCUA to lease or purchase real or personal property without regard to other laws applicable to independent or executive agencies.

Treats all funds of the NCUA as trust funds for purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

Specifies that the NCUA's prohibition authority extends to both employees and agents of federally-insured credit unions. Provides that if a person is removed, suspended, or prohibited from participating in the conduct of the affairs of an insured credit union, that person shall also be removed, suspended, or prohibited from participating in the affairs of all federally-insured depository institutions, all bank holding companies, and all institutions chartered by the Farm Credit Administration.

Authorizes the NCUA to impose a conservatorship when there is a willful violation of a cease-and-desist order which has become final or when there is a concealment of or refusal to submit documents or other records of a credit union to an NCUA examiner or to any lawful agent of the Board.

Reduces from 90 days to 30 days the period the NCUA must allow State regulators to respond to the NCUA's proposed imposition of conservatorship in the case of a State-chartered, NCUA-insured institution.

Specifies that a conservator shall have all the powers of the members, the directors, the officers, and the committees of a credit union and shall be authorized to operate a credit union in its own name or to conserve its assets in the manner and to the extent authorized by the NCUA.

Allows an insured credit union which has been closed for liquidation to apply to a United States District Court within 10 days of such closure for an order requiring the NCUA Board to show cause why it should not be prohibited from continuing such liquidation. Provides that the NCUA's liquidation powers shall not be subject to court regulation.

Amends the Federal Trade Commission Act to exempt Federal credit unions from the jurisdiction of the Federal Trade Commission.

Permits credit unions to pledge any of their assets to secure deposits made by Federal, State, and local governments and Indian tribes.

Title VIII: Loan Loss Amortization - Allows agricultural banks to amortize over seven years losses on qualified agricultural loans that such banks would otherwise be required to show on annual financial statements for 1984 through 1991.

Title IX: Full Faith and Credit of Federally Insured Financial Depository Institutions - Expresses the sense of the Congress to reaffirm that deposits, up to the statutorily prescribed amount, in federally-insured depository institutions are backed by the full faith and credit of the United States.

Title X: Government Checks - Requires the Comptroller General to conduct a study of the extent to which individuals who receive Government checks have difficulty cashing such checks.

Places a one-year limit on the negotiability of a Treasury check. Sets forth a process for the cancellation of Treaury checks. Limits reclamation actions and claims.

Title XI: Interest to Certain Depositors - Requires the FDIC to pay interest on nonnegotiable certificates which were insured by the Golden Pacific National Bank of New York, New York.

Title XII: Miscellaneous Provisions - Requires the Comptroller General to conduct a study of the investments made by federally-insured institutions in high yield, noninvestment grade bonds during the past five years. Directs the Comptroller General to report the results of such study to the Congress.

Directs the Comptroller General to conduct a study of: (1) the Federal Reserve System's exemption from the imposition of presentment fees; (2) the impact of the imposition of presentment fees on the efficiency of the check collecting system; (3) and whether the Federal Reserve Banks need the services of check clearinghouse services.

Directs the Bank Board to study the effects of direct investment activities.

Requires that adjustable rate mortgages include a limitation on the maximum rate of interest applicable to the loan.