(This measure has not been amended since it was introduced. The summary of that version has been expanded because action occurred on the measure.)
Financial Services Regulatory Relief Amendments Act of 2006 - (Sec. 2) Amends the Federal Deposit Insurance Act regarding depository institutions lacking federal deposit insurance to authorize the state supervisor of a private deposit insurer, or of a depository institution which receives deposits insured by a private deposit insurer, to examine and enforce compliance with the requirement that a private deposit insurer obtain annual independent audits.
Requires depository institutions without federal deposit insurance to disclose on every share certificate that: (1) the institution is not federally insured; and (2) if it fails, the federal government does not guarantee that depositors will get back their money.
Revises the requirement that such institutions disclose conspicuously in all advertising and at each place where deposits are normally received that the institution is not federally insured. Requires such a notice also on the institution's main Internet page. Makes an exception to such requirement for: (1) statements or reports of financial condition required to be published or posted by state or federal law or regulation; (2) any sign, document, or other item containing the institution's name, logo, or contact information, if no products, services, or other promotional information is included; and (3) small utilitarian items that do not mention deposit products or insurance if inclusion of the notice would be impractical.
Requires the institution to obtain or attempt to obtain a written acknowledgment of such disclosure from new depositors acquired through a conversion or merger.
Repeals the prohibition against use of the mails to receive deposits by any depository institution lacking federal deposit insurance unless a state supervisor determines that it meets all requirements for federal deposit insurance.
Repeals coverage as a depository institution under the Act of any entity that, as determined by the Federal Trade Commission (FTC), is engaged in the business of receiving deposits, and could reasonably be mistaken for a depository institution by its current or prospective customers.
Redefines "depository institution" to exclude any national bank, state member bank, or federal branch.
Modifies FTC authority to enforce compliance with the requirements of the Act for depository institutions lacking federal deposit insurance. Removes independent audit requirements enforcement from FTC authority, while retaining enforcement of disclosure requirements. Authorizes an appropriate state supervisor of such institutions to enforce compliance with federal requirements, unless the FTC has already instituted an enforcement action.
(Sec. 3) Imposes on certain other lenders the maximum interest rate or related charges for debt applicable to home state banks in competition with local branches of out-of-state banks.
Defines other lender as any person engaged in the business of selling or financing the sale of personal property (and any incidental services) in a state. Excludes an insured depository institution from other-lender treatment, as well as any person or entity engaged in the business of providing a short-term cash advance to any consumer in exchange for: (1) a consumer's personal check or share draft, in the amount of the advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or (2) a consumer authorization to debit the consumer's transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6072 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 6072
To amend the Federal Deposit Insurance Act to provide further
regulatory relief for depository institutions and clarify certain
provisions of law applicable to such institutions, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 14, 2006
Mr. Ross (for himself and Mr. Oxley) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to provide further
regulatory relief for depository institutions and clarify certain
provisions of law applicable to such institutions, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Services Regulatory Relief
Amendments Act of 2006'' .
SEC. 2. AMENDMENTS RELATING TO NONFEDERALLY INSURED CREDIT UNIONS.
(a) In General.--Subsection (a) of section 43 of the Federal
Deposit Insurance Act (12 U.S.C. 1831t(a)) is amended by adding at the
end the following new paragraph:
``(3) Enforcement by appropriate state supervisor.--Any
appropriate State supervisor of a private deposit insurer, and
any appropriate State supervisor of a depository institution
which receives deposits that are insured by a private deposit
insurer, may examine and enforce compliance with this
subsection under the applicable regulatory authority of such
supervisor.''.
(b) Amendment Relating to Disclosures Required, Periodic Statements
and Account Records.--Section 43(b)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1831t(b)(1)) is amended by striking ``or similar
instrument evidencing a deposit'' and inserting ``or share
certificate''.
(c) Amendments Relating to Disclosures Required, Advertising,
Premises.--Section 43(b)(2) of the Federal Deposit Insurance Act (12
U.S.C. 1831t(b)(2)) is amended to read as follows:
``(2) Advertising; premises.--
``(A) In general.--Include clearly and
conspicuously in all advertising, except as provided in
subparagraph (B); and at each station or window where
deposits are normally received, its principal place of
business and all its branches where it accepts deposits
or opens accounts (excluding automated teller machines
or point of sale terminals), and on its main Internet
page, a notice that the institution is not federally
insured.
``(B) Exceptions.--The following need not include a
notice that the institution is not federally insured:
``(i) Statements or reports of financial
condition of the depository institution that
are required to be published or posted by State
or Federal law or regulation.
``(ii) Any sign, document, or other item
that contains the name of the depository
institution, its logo, or its contact
information, but only if the sign, document, or
item does not include any information about the
institution's products or services or
information otherwise promoting the
institution.
``(iii) Small utilitarian items that do not
mention deposit products or insurance if
inclusion of the notice would be
impractical.''.
(d) Amendments Relating to Acknowledgment of Disclosure.--Section
43(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1831t(b)(3))
is amended to read as follows:
``(3) Acknowledgment of disclosure.--
``(A) New depositors obtained other than through a
conversion or merger.--With respect to any depositor
who was not a depositor at the depository institution
before the effective date of the Financial Services
Regulatory Relief Amendments Act of 2006, and who is
not a depositor as described in subparagraph (B),
receive any deposit for the account of such depositor
only if the depositor has signed a written
acknowledgment that--
``(i) the institution is not federally
insured; and
``(ii) if the institution fails, the
Federal Government does not guarantee that the
depositor will get back the depositor's money.
``(B) New depositors obtained through a conversion
or merger.--With respect to a depositor at a federally
insured depository institution that converts to, or
merges into, a depository institution lacking Federal
insurance after the effective date of the Financial
Services Regulatory Relief Amendments Act of 2006,
receive any deposit for the account of such depositor
only if--
``(i) the depositor has signed a written
acknowledgment described in subparagraph (A);
or
``(ii) the institution makes an attempt, as
described in subparagraph (D) and sent by mail
no later than 45 days after the effective date
of the conversion or merger, to obtain the
acknowledgment.
``(C) Current depositors.--Receive any deposit
after the effective date of the Financial Services
Regulatory Relief Amendments Act of 2006 for the
account of any depositor who was a depositor on that
date only if--
``(i) the depositor has signed a written
acknowledgment described in subparagraph (A);
or
``(ii) the institution makes an attempt, as
described in subparagraph (D) and sent by mail
no later than 45 days after the effective date
of the Financial Services Regulatory Relief
Amendments Act of 2006, to obtain the
acknowledgment.
``(D) Alternative provision of notice to current
depositors and new depositors obtained through a
conversion or merger.--
``(i) In general.--Transmit to each
depositor who has not signed a written
acknowledgment described in subparagraph (A)--
``(I) a conspicuous card containing
the information described in clauses
(i) and (ii) of subparagraph (A), and a
line for the signature of the
depositor; and
``(II) accompanying materials
requesting the depositor to sign the
card, and return the signed card to the
institution.''.
(e) Repeal of Provision Prohibiting Nondepository Institutions From
Accepting Deposits.--Section 43 of the Federal Deposit Insurance Act
(12 U.S.C. 1831t) is amended--
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
(f) Repeal of Provision Concerning Nondepository Institutions
Masquerading as Depository Institutions and Clarification of Depository
Institutions Covered by the Statute.--Subsection (e)(2) (as so
redesignated by subsection (e) of this section) of section 43 of the
Federal Deposit Insurance Act (12 U.S.C. 1831t) is amended to read as
follows:
``(2) Depository institution.--The term `depository
institution'--
``(A) includes any entity described in section
19(b)(1)(A)(iv) of the Federal Reserve Act; and
``(B) does not include any national bank, State
member bank, or Federal branch.''.
(g) Repeal of FTC Authority to Enforce Independent Audit
Requirement; Concurrent State Enforcement.--Subsection (f) (as so
redesignated by subsection (e) of this section) of section 43 of the
Federal Deposit Insurance Act (12 U.S.C. 1831t) is amended to read as
follows:
``(f) Enforcement.--
``(1) Limited ftc enforcement authority.--Compliance with
the requirements of subsections (b) and (c), and any regulation
prescribed or order issued under any such subsection, shall be
enforced under the Federal Trade Commission Act by the Federal
Trade Commission.
``(2) Broad state enforcement authority.--
``(A) In general.--Subject to subparagraph (C), an
appropriate State supervisor of a depository
institution lacking Federal deposit insurance may
examine and enforce compliance with the requirements of
this section, and any regulation prescribed under this
section.
``(B) State powers.--For purposes of bringing any
action to enforce compliance with this section, no
provision of this section shall be construed as
preventing an appropriate State supervisor of a
depository institution lacking Federal deposit
insurance from exercising any powers conferred on such
official by the laws of such State.
``(C) Limitation on state action while federal
action pending.--If the Federal Trade Commission has
instituted an enforcement action for a violation of
this section, no appropriate State supervisor may,
during the pendency of such action, bring an action
under this section against any defendant named in the
complaint of the Commission for any violation of this
section that is alleged in that complaint.''.
SEC. 3. CLARIFICATION OF SCOPE OF APPLICABLE RATE PROVISION.
Section 44(f) of the Federal Deposit Insurance Act (12 U.S.C.
1831u(f)) is amended by adding at the end the following new paragraphs:
``(3) Other lenders.--In the case of any other lender doing
business in the State described in paragraph (1), the maximum
interest rate or amount of interest, discount points, finance
charges, or other similar charges that may be charged, taken,
received, or reserved from time to time in any loan, discount,
or credit sale made, or upon any note, bill of exchange,
financing transaction, or other evidence of debt issued to or
acquired by any other lender shall be equal to not more than
the greater of the rates described in subparagraph (A) or (B)
of paragraph (1).
``(4) Other lender defined.--For purposes of paragraph (3),
the term `other lender' means any person engaged in the
business of selling or financing the sale of personal property
(and any services incidental to the sale of personal property)
in such State, except that, with regard to any person or entity
described in such paragraph, such term does not include--
``(A) an insured depository institution; or
``(B) any person or entity engaged in the business
of providing a short-term cash advance to any consumer
in exchange for--
``(i) a consumer's personal check or share
draft, in the amount of the advance plus a fee,
where presentment or negotiation of such check
or share draft is deferred by agreement of the
parties until a designated future date; or
``(ii) a consumer authorization to debit
the consumer's transaction account, in the
amount of the advance plus a fee, where such
account will be debited on or after a
designated future date.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Mr. McHenry moved to suspend the rules and pass the bill.
Considered under suspension of the rules. (consideration: CR H7604-7605)
DEBATE - The House proceeded with forty minutes of debate on H.R. 6072.
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote.(text: CR H7604-7605)
On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H7604-7605)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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