Economic Growth and Regulatory Paperwork Reduction Act of 1993

TABLE OF CONTENTS:

Title I: Regulatory Impact on Credit Availability

Title II: Regulatory Micromanagement

Title III: Unnecessary Cost, Paperwork and Regulation

Title IV: Consumer Inconvenience, Paperwork, and Cost; Other

Non-Supervisory Reforms

Title V: Community Investment

Economic Growth and Regulatory Paperwork Reduction Act of 1993 - Title I: Regulatory Impact on Credit Availability - Subtitle A: General Provisions - (Sec. 101) Amends the Federal Deposit Insurance Act (FDIA) to modify the criteria relating to real estate lending standards.

(Sec. 102) Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to direct the Appraisal Subcommittee of the Federal Financial Institutions Examination Council to encourage the States to develop reciprocity agreements with respect to appraisals performed by licensed real estate appraisers in good standing.

(Sec. 103) Amends the FDIA to exempt from its proscription against agreements inimical to the interests of the Federal Deposit Insurance Corporation (FDIC) those agreements governing the deposit custody or collateralization of funds of any public entity.

Subtitle B: Impact of Accounting and Capital Issues on Credit Availability - (Secs. 111-113) Amends the FDIA to modify the guidelines regarding: (1) early identification of needed improvements in financial management; (2) accounting objectives, standards, and requirements; (3) recourse agreements; and (4) disclosure by insured depository institutions of the market value of their assets and liabilities.

(Secs. 114-115) Requires the Department of the Treasury to report to the Congress on the impact that implementation of risk based capital standards will have upon domestic institutions and credit availability. Modifies the deadline for the promulgation of final regulations regarding certain capital standards that impact upon credit availability.

Subtitle C: Disincentives to Risk-taking - (Secs. 121-123) - Amends specified Federal banking laws to modify guidelines with respect to: (1) the attachment of assets; and (2) the culpability standards for civil money penalties and for the directors and officers of an insured depository institution.

Subtitle D: Miscellaneous Credit Availability Provisions - (Sec. 131) Requires each appropriate Federal banking agency and the National Credit Union Administration to establish an independent appellate process to review material supervisory determinations made at institutions under their purview.

(Sec. 132) Amends the Federal Reserve Act to modify the aggregate limits on insider lending for specified small banks.

(Sec. 133) Requires: (1) the Board to study and report to the Congress on certain sterile reserves associated with depository institutions; and (2) the Office of Management and Budget and the Congressional Budget Office to report to the Congress on the budgetary impact of interest payments associated with such reserves.

(Sec. 134) Amends the FDIA to prescribe guidelines for the sale by an undercapitalized insured depository institution of credit card accounts receivable.

(Sec. 135) Amends the Federal Home Loan Bank Act to modify the guidelines under which Federal Home Loan Banks may make: (1) secured advances to members for housing finance; and (2) investments for the purchase of participating interests in certain residential construction loans.

Title II: Regulatory Micromanagement - (Sec. 201) Amends the FDIA to repeal the criteria for safety and soundness regarding the operational and managerial standards of insured depository institutions.

(Sec. 202) Requires each appropriate Federal banking agency to review, and eliminate where appropriate, regulations requiring insured depository institutions to produce unnecessary internal written policies.

(Secs. 203-204) Modifies the guidelines regarding deposit solicitation by insured depository institutions to include within the definition of "deposit broker" an undercapitalized institution. Sets forth a transition period for new Federal regulations which impose additional requirements on an insured depository institution.

Title III: Unnecessary Cost, Paperwork and Regulation - Subtitle A: General Provisions - (Secs. 301-302) Amends the FDIA to: (1) extend from 18 months to 24 months the mandatory on-site examination cycle for specified small-sized, insured depository institutions; (2) allow exemption from its examination requirement of insured depository institutions within certain depository institution holding companies; and (3) direct Federal banking regulatory agencies to coordinate their examinations with their State counterparts.

(Sec. 304) Modifies the call report requirements affecting insured depository institutions.

(Sec. 305) Directs the Federal Financial Institutions Examination Council to review and reduce, where appropriate, the burdensome effect upon community banks of compliance requirements associated with risk-based capital rules.

(Sec. 307) Amends Federal law to modify the recordkeeping requirements for monetary instruments transactions.

(Sec. 308) Amends the FDIA to direct the FDIC to minimize the regulatory burden imposed upon insured depository institutions.

(Sec. 309) Amends the Federal Reserve Act and the FDIA to limit the liability of domestic banks with respect to deposits made at foreign branches.

Subtitle B: Holding Company Efficiencies - (Sec. 321) Amends the Bank Holding Company Act of 1956 to cite circumstances under which a company may acquire control of a bank undergoing a specified kind of reorganization.

(Sec. 322) Amends the Securities Act of 1933 to exempt from its registration requirements any acquisitions resulting from such reorganization.

(Sec. 323) Amends the Bank Holding Company Act of 1956 to: (1) modify the procedures under which bank holding companies acquire the shares of any company whose nonbanking activities are closely related to banking; and (2) provide for reduction of the post-approval waiting period for mergers, acquisition, or consolidation transactions.

Title IV: Consumer Inconvenience, Paperwork, and Cost; Other Non-Supervisory Reforms - Subtitle A: Consumer Benefits and Lending Process Improvements - (Sec. 401) Directs the Board to study and report to the Congress on ways to streamline the credit-granting process.

(Secs. 402-404) Amends the Truth in Lending Act to: (1) exempt specified credit transactions from its disclosure requirements; (2) repeal the "personal financial emergency" prerequisite to the Board's authority to modify rights relating to certain consumer credit transactions; and (3) modify the disclosure requirements for adjustable rate credit transactions.

(Sec. 405) Amends the Truth in Savings Act to exempt business accounts from its purview.

(Sec. 406) Amends the Real Estate Settlement Procedures Act to repeal certain disclosure requirements regarding federally related mortgage loans that are statutorily mandated elsewhere.

Subtitle B: Other Non-Supervisory Reforms Part 1: Expedited Funds Availability and Electronic Transfers - (Secs. 411-413) Amends the Expedited Funds Availability Act to: (1) modify the availability schedules for both depository institution accounts and new accounts; and (2) authorize the Board to establish rules regarding losses and liability among the States and their political subdivisions in connection with any aspect of the payment system.

(Sec. 414) Amends the Electronic Fund Transfer Act to increase consumer liability for unauthorized electronic funds transfers where the cardholder has substantially contributed to such use.

Part 2: Amendments to The Truth in Lending Act - (Sec. 421) Amends the Truth in Lending Act to increase cardholder liability for unauthorized credit card use where the cardholder does not timely notify the card issuer.

Part 3: Homeownership Amendments - (Sec. 431) Amends the Home Mortgage Disclosure Act of 1975 to modify the total assets criterion used to exempt depository institutions from its purview.

(Sec. 432) Amends the Housing and Urban Development Act of 1968 to modify its homeownership debt counseling notification requirements.

(Sec. 433) Forbids any Federal banking agency from requiring any institution under its purview to engage in data collection practices pursuant to the requirements of the Fair Housing Act other than data required under the Home Mortgage Disclosure Act of 1975.

Part 4: Amendments to the Truth in Savings Act - (Sec. 441) Amends the Truth in Savings Act to limit a depository institution's civil liability for non-compliance with its disclosure requirements regarding: (1) annual percentage yield earned and the amounts of any fees or charges imposed; and (2) interest rates and terms of accounts in advertisements or solicitations.

Part 5: Amendments to the Real Estate Settlements Procedures Act - (Sec. 451) Amends the Real Estate Settlement Procedures Act of 1974 to: (1) modify the disclosure requirements for federally related mortgage loans; and (2) exempt from its purview specified credit extension transactions.

Title V: Community Investment - (Sec. 501) Amends the Community Reinvestment Act of 1977 to: (1) mandate that, in its examination of a financial institution, a Federal financial supervisory agency shall minimize the regulatory paperwork burdens associated with compliance with such Act; (2) delineate the evaluation parameters under which an application for a deposit facility shall be accepted; (3) amend the service area guidelines relating to credit for distressed communities; (4) include "special purpose banks" within its purview; and (5) authorize the Federal financial supervisory agencies to accept State examinations conducted pursuant to comparable State community reinvestment laws in satisfaction of the requirements of such Act.