United States · United States Congress · 4 February 1987
General Aviation Accident Liability Standards Act of 1987 - Declares that this Act supersedes any State law regarding liability for general aviation accidents. Establishes guidelines for uniform standards of liability of general aviation manufacturers for general aviation accidents. States that all actions for harm arising out of a general aviation accident shall be governed by the principles of comparative responsibility. Establishes, with specified exceptions, a limitation of actions period of 20 years from delivery of aircraft or harm-causing part to the purchaser for general aviation civil liability brought against a general aviation manufacturer. Declares admissible as evidence certain income tax and payroll tax liability for purposes of establishing financial harm arising out of a general aviation accident. Permits the award of punitive damages if a claimant establishes by clear and convincing evidence that the harm suffered was the direct result of conduct manifesting conscious, flagrant indifference to safety. Establishes a two-year limitation of actions period for actions arising out of a general aviation accident. Declares the intent of the Congress that sanctions be strictly enforced for violations of Rule 11 of the Federal Rules of Civil Procedure, including orders to pay to the other party the reasonable costs of legal fees. Confers original jurisdiction upon the Federal district courts, concurrently with State courts, for all civil actions for harm arising out of a general aviation accident. Provides procedures for removal from State to Federal district courts of such actions.
United States · United States Congress · 4 February 1987
Amends the Tax Reform Act of 1986 to delay from 1987 to 1988 the increase from 80 percent to 90 percent in the current year liability test for estimated tax payments by individuals. Extends the waiver of estimated tax penalties for underpayments of tax by individuals attributable to the Tax Reform Act of 1986 from April 16, 1987, to April 16, 1988. Allows certain taxpayers to elect to pay part or all of the taxes for the taxpayer's first taxable year beginning in 1987 in three installments.
United States · United States Congress · 3 February 1987
Amends the Internal Revenue Code to disallow an income tax deduction for any amounts paid or incurred to advertise any tobacco products. Defines "tobacco products" as cigarettes, cigars, smokeless tobacco, pipe tobacco, or any similar tobacco product.
United States · United States Congress · 3 February 1987
Amends the Tax Reform Act of 1986 to repeal provisions relating to the taxation of both individual and corporate capital gains. Provides that the Internal Revenue Code shall be applied and administered as if such provisions had not been enacted. Amends the Deficit Reduction Act of 1984 to increase the holding period required for long-term capital gain tax treatment of property acquired after 1986. Amends the Internal Revenue Code to revise the method of calculating the deduction for capital gains. Allows a capital gains deduction of 60 percent for assets held three years or more, and 40 percent for assets held for more than one but less than three years.
United States · United States Congress · 2 February 1987
Gives special recognition to the achievements of wilderness ecologist Aldo Leopold. Urges Federal land management agencies to model their activities after the conservation ethic he inspired.
United States · United States Congress · 28 January 1987
Provides that each item of any joint resolution making continuing appropriations that is agreed to in the same form by both Houses of the Congress shall be enrolled as a separate bill or joint resolution for presentation to the President (line-item veto).
United States · United States Congress · 22 January 1987
Constitutional Amendment - Defines "person" to include the unborn for the purpose of the right to life guarantee. Exempts from applicability of this amendment laws permitting medical procedures required to prevent the death of the mother.
United States · United States Congress · 22 January 1987
Constitutional Amendment - Defines "person" to include the unborn for the purpose of the right to life guarantee. Exempts from applicability of this amendment laws permitting medical procedures required to prevent the death of the mother.
United States · United States Congress · 21 January 1987
Amends the Tax Reform Act of 1986 to extend for one year (from April 16, 1987, to April 16, 1988) the waiver of estimated tax penalties for underpayments by individuals attributable to such Act.
United States · United States Congress · 21 January 1987
Designates January 28, 1987, as National Challenger Center Day. (The Challenger Center is an institution offering children and teachers activities and information derived from American space research.)
United States · United States Congress · 20 January 1987
Prompt Payment Act Amendments of 1987 - Revises Federal law to deem the head of a Federal agency to have received an invoice on the later of: (1) the date on which the designated office or employee of an agency actually receives it; or (2) the fifth day after the date on which a property is actually delivered, or final performance of a service is actually completed, unless the contract specifies otherwise. Makes Federal prompt payment provisions applicable to the United States Postal Service. Makes the Postmaster General responsible for issuing procurement regulations, solicitation provisions, and contract clauses. Reduces the 15-day grace period for payment of interest penalties to eight days for solicitations (other than meat products and agricultural commodities) issued before October 1, 1990. Eliminates such grace period for procurement solicitations issued on or after October 1, 1990. Requires an agency to pay a double interest penalty if: (1) the agency owes the interest penalty; (2) the interest penalty is not paid to the business concern on or after the date the penalty is due; (3) the agency does not pay the penalty within ten days after such payment is made; and (4) a written demand is made within 40 days after such payment is made. Requires regulations on interest penalties, in the case of construction contracts, to provide for the payment of interest on: (1) progress payments due for more than seven days, or a longer period if the prevailing practice in private construction contracts is to provide such longer period; and (2) amounts retained during the performance of a contract, if such amounts are not paid by the required payment date. Requires regulations on interest penalties to provide for periodic payments in the case of supply or service contracts upon: (1) the submission of an invoice for supplies delivered or services performed; and (2) acceptance of supplies or services by an authorized employee or certification of performance by such an employee. Requires Government construction contractors to include a payment provision in their agreements with their subcontractors which provides for payment in accordance with prevailing industry standards. Requires the contractor to pay a late payment interest penalty to the subcontractor at the rate applicable between the prime contractor and the Government. Declares that a prime contractor's obligation to pay an interest penalty to a subcontractor may not be construed to be an obligation of the United States. Specifies the calculation of time for interest penalties on discount payments. Revises agency reporting requirements on interest penalty payments to include a description of agency payment practices. Requires the modification of the Federal acquisition regulation to implement Federal prompt payment provisions.
United States · United States Congress · 6 January 1987
Amends the Internal Revenue Code to deny status as a tax-exempt organization to any organization which performs, finances, or provides facilities for abortions (except where the life of the mother would be endangered). Denies the income, estate, and gift tax charitable contribution deductions for amounts contributed to such organizations.
United States · United States Congress · 6 January 1987
Amends Federal law relating to maximum speed limits on any public highway to direct the Secretary of Transportation to disapprove State highway projects seeking Federal proportional contribution if: (1) such highways have a maximum speed limit in any urbanized area (currently, any State public highway) exceeding 55 miles an hour; and (2) the maximum speed limit on any other public highway in the requesting State exceeds 65 miles per hour. Directs the Secretary to reduce the Federal-aid highway funds apportioned to a State if data submitted by such State indicates that the percentage of motor vehicles exceeding 55 miles an hour in any urbanized area (currently, any area) is greater than 50 percent.
United States · United States Congress · 6 January 1987
Financial Services Competitive Enhancement Act of 1987 - Amends the Banking Act of 1933 to: (1) allow a member bank of the Federal Reserve System to be affiliated with a depository institution securities affiliate or with a bank service corporation engaged in activities permissible for a depository institution securities affiliate; and (2) permit an officer, director, or employee of a member bank to serve at the same time as an officer, director, or employee of such an affiliate or corporation. Amends the National Bank Act to authorize national banks to: (1) provide portfolio investment advisory, management, information, forecasting, and research services to individual and institutional customers in combination with or separate from the purchase or sale of securities for such customers; (2) engage in activities consisting of insurance agency or brokerage, real estate brokerage or related services, homeownership and financial counseling, tax return preparation and tax planning, armored car services, travel agency services, or check guarantee, collection agency, or credit bureau services; and (3) invest in tangible personal property for rental or sale, provided such investment does not exceed ten percent of the bank's assets. Authorizes the Comptroller of the Currency to permit national banks to exercise any powers granted to, or to conduct any activities permitted for: (1) Federal savings and loan associations; or (2) State banks in the State in which the national bank is headquartered. Amends the Bank Holding Company Act to define, for purposes of such Act; (1) "depository institution securities affiliate" as any corporation that engages in the United States in the activities of such an affiliate, a broker, or dealer under the Securities Exchange Act of 1934, or an investment adviser under the Investment Advisers Act of 1940; (2) "depository institution holding company" as a bank holding company; (3) "depository institution" as a bank; and (4) "insured institution" as defined under the National Housing Act. Provides that provisions prohibiting any action that causes a company to become a bank holding company shall not apply where: (1) the company provides 30 days' notice to the Federal Reserve Board; (2) the company acquires control of a bank through a reorganization in which persons exchange their shares of the bank for the same proportional share interest in a newly formed bank holding company; and (3) such bank holding company meets capital and financial standards prescribed by the Board and does not conduct activities other than banking or managing and controlling banks or related financial activities. Permits a bank holding company to acquire and retain ownership or control of shares of any company or insured institution the activities of which consist of: (1) financial activities related to banking or managing or controlling banks; (2) insurance underwriting, agency, or brokerage; or (3) real estate investment, development, brokerage, or related services. Prohibits a bank holding company from engaging in authorized activity de novo or by acquisition unless it provides the Board 60 days' notice and the Board does not, within such 60 days, issue an order disapproving the proposal or suspending the 60-day period in order to obtain more information. Permits the Board to provide for no notice requirement, or for a shorter notice period, with respect to particular activities. Includes among the criteria the Board may consider in evaluating such a notice: (1) the managerial, technical, and financial resources of the companies involved; (2) any practice that may adversely affect the impartiality of an affiliated bank in the provision or terms of credit or other services; (3) any material adverse effect on the safety and soundness or financial condition of an affiliated bank; and (4) whether any acquisition would substantially lessen competition or tend to create a monopoly. Requires the Board to approve such a notice with appropriate limitations, restrictions, or conditions that could cure deficiencies which otherwise would result in disapproval of the notice. Prohibits the Board from limiting, restricting, or conditioning the authority under Federal or State law of an insured institution, or an affiliate or subsidiary thereof, acquired by a bank holding company. Directs the Board, in the case of notice disapproval, to explain why notice deficiencies could not be cured by limitations, restrictions, or conditions. Permits a bank holding company to obtain judicial review of a Board order approving a notice with limitations, restrictions, or conditions. Directs the Board, under specified guidelines, to promulgate regulations designating particular financial activities that are reasonably or functionally related to banking or managing or controlling banks. Applies restrictions on interstate acquisitions by bank holding companies under the Bank Holding Company Act to acquisitions of insured institutions, except for emergency acquisitions. Allows any insured institution that becomes a bank holding company subsidiary to retain its existing branches, but limits its future branches to locations where a national bank may establish branches. Permits the Board to dispense with notice and hearing requirements for any application for an acquisition of a thrift institution in an emergency. Permits a bank holding company to acquire shares of any insurance company and engage in any insurance activity notwithstanding any State laws, but subjects such insurance company to State examination, supervision, and licensing requirements. Permits a bank holding company, subject to requirements concerning providing notice to the Board, to acquire and retain ownership or control of: (1) any depository institution securities affiliate which may conduct specified securities activities; (2) any company engaged in any activity in which a multiple savings and loan holding company was authorized to engage directly on the date of enactment of this Act; (3) any company providing homeownership and financial counseling; (4) any company in the business of preparing tax returns and tax planning; (5) any company providing armored car services; (6) any company providing check guaranty, collection agency, or credit bureau services; or (7) any company providing travel agency services. Subjects Board orders regarding bank holding company acquisitions to judicial review solely on questions relating to any Board finding: (1) that a proposed activity is permissible for a bank holding company; and (2) regarding a substantial lessening of competition or tendency to create a monopoly. Prohibits the reviewing court from staying the Board's order approving such acquisition pending judicial review or overturning the Board's findings, unless demonstrated to be plainly in error and at variance with the facts. Permits the court to assess litigation fees against any party that petitions for judical review if the court finds such petition to be nonmeritorious. Sets forth reporting and examination requirements for nonbank subsidiaries of bank holding companies. Provides for the use of reports required by other statutes or agencies. Prohibits any State from prohibiting the affiliation of a national banking association with a depository institution securities affiliate or other company in which a bank holding company may acquire an interest under this Act. Amends the Bank Service Corporation Act to permit a Federal Deposit Insurance Corporation-insured bank to invest up to three percent of its total assets (currently, ten percent of paid-in and unimpaired capital and unimpaired surplus) in one bank service corporation and up to 15 percent (currently five percent) of its total assets in bank service corporations overall. Permits a bank service corporation to engage in nonbanking activities permitted for bank holding companies, except for those of an insured institution. Subjects investment by an insured bank in, and the performance of nonbanking activities by, a bank service corporation to the notice requirements, evaluation criteria, Board order provisions, judicial review procedures, reporting and examination requirements, and antitrust standards applicable to acquisitions and the performance of nonbanking activities by bank holding companies. Provides that provisions prohibiting a corporation from discriminating in the provision of services to nonstockholding institutions shall apply only to corporations which provide services to any nonstockholding institution. Designates the Board as the appropriate regulatory agency of a bank service corporation engaged in such nonbanking activities. Amends the Federal Reserve Act to exempt from provisions restricting transactions between member banks and their affiliates purchases of assets having a readily identifiable and available (currently, publicly available) market quotation when the purchases are made at the market quotation price. Amends the Federal Deposit Insurance Act to authorize the Board to bring cease-and-desist proceedings against a bank holding company's nonbank subsidiary for activity which may: (1) affect the safety and soundness of any bank owned or controlled by the holding company; or (2) violate any banking law, rule, regulation, or order.
United States · United States Congress · 6 January 1987
Prohibition of Smoking in Public Conveyances Act of 1987 - Prohibits any person from smoking in: (1) any regularly scheduled public conveyance which is traveling within the United States; (2) a waiting area in a terminal for a public conveyance (unless such area is designated for smoking); or (3) any public restroom in a terminal for a public conveyance. Defines "public conveyance" as any vehicle of a privately or publicly owned common carrier providing passenger service, including air, rail, boat, ship, or bus service. Establishes fines in specified amounts for violations of this Act. Authorizes any person who is aggrieved by a violation of this Act to bring an action for injunctive relief in the appropriate Federal district court. Authorizes the court to award costs and reasonable fees and expenses of attorneys. Authorizes the States to enforce State laws relating to smoking which are more restrictive than the provisions of this Act.
United States · United States Congress · 6 January 1987
Federal Savings and Loan Insurance Corporation Recapitalization Act of 1986 - Amends the Federal Home Loan Bank Act to require the Federal Home Loan Bank Board (FHLBB) to charter the Financing Corporation. Requires the Corporation to be under the management of a Directorate consisting of the Director of Finance of the Federal Home Loan Banks (Banks) and two other members selected by the Board from presidents of the Banks. Empowers the Corporation to borrow, to issue stock to Banks, to invest in Federal Savings and Loan Insurance Corporation (FSLIC) securities, to issue obligations the proceeds of which shall be invested in the FSLIC, and to make semiannual assessments of insured institutions to provide for the issuance costs, interest, and custodian fees of such obligations. Limits the aggregate amount of such obligations that may be outstanding at any time. Provides that such obligations shall be treated by the Securities and Exchange Commission as exempt securities, shall be tax-exempt (excluding interest), and shall not be guaranteed by the FSLIC, the Banks, or the United States. Requires each Bank to invest in nonvoting capital stock of the Corporation. Limits the cumulative investment of all Banks to $3,000,000,000 and of each Bank to the sum of specified required reserves plus undivided profits, as prescribed by this Act. Sets forth a formula for determining the prorated portion of funds to be invested by each Bank. Restricts dividend payments by a Bank for which other Banks must invest a required amount. Limits the use and disposition of Corporation assets not invested in the FSLIC. Prohibits the Corporation from making any net new borrowing after December 31, 1996. Creates a Federal Savings and Loan Insurance Corporation Industry Advisory Committee. Directs the Committee to: (1) review, and confer with the FHLBB regarding quarterly reports and budgets on the activities, receipts, and expenditures of the FSLIC; and (2) submit an annual report to specified congressional committee chairmen on its activities and its reports and recommendations to the FHLBB and the FSLIC. Terminates the Committee and the Corporation as soon as practicable after the earlier of: (1) the date by which all FSLIC stock purchased by the Corporation has been retired; or (2) December 31, 2026. Amends the Government Corporations Control Act to establish the Corporation as a mixed ownership Government corporation. Amends the National Housing Act to authorize the FSLIC to issue nonredeemable capital certificates and redeemable nonvoting capital stock which shall be sold only to the Corporation, shall pay no dividends, and the proceeds of which shall be considered part of the FSLIC's primary reserve. Directs the FSLIC to establish and maintain an equity return account until all such certificates and stock have been paid off and retired. Sets forth formulae for calculating the FSLIC's annual contributions to such account beginning in 1997 based on the fraction of the aggregate amount of all accounts of all insured members equal to FSLIC reserves. Authorizes the FSLIC to invest amounts accumulated in such account as it determines appropriate. Directs the FSLIC to use only amounts accumulated in such account to payoff and retire its stock. Provides that certain statutorily prescribed suspensions or reductions of FSLIC premiums based on the FSLIC's primary and secondary reserve levels shall not apply as long as shares of its capital stock are outstanding. Reduces the total premiums paid by an insured institution to the FSLIC by the amount of any assessments paid to the Corporation during the same period. Amends the Federal Home Loan Bank Act to allow the FHLBB to authorize a Bank to declare and pay dividends out of its undivided profits or legal reserves, only after such Bank has reduced all other reserves to zero, if: (1) the Bank incurs a charge-off or expense related to its investment in the Corporation; and (2) the FHLBB determines that there is an extraordinary need for such Bank's member institutions to receive dividends. Directs the FSLIC to: (1) complete quarterly reports and budgets explaining its activities, receipts, and expenditures, including the activities, receipts, and expenditures of the Federal Asset Disposition Association, for the current and preceding quarters; and (2) submit to specified congressional committee chairmen semiannual reports and budgets on its activities, receipts, and expenditures for the preceding semiannual period.
United States · United States Congress · 6 January 1987
Constitutional Amendment - Prohibits Federal outlays from exceeding Federal receipts in any fiscal year, unless the Congress provides for a specific excess by a three-fifths vote of both Houses. Prohibits a bill to increase revenue from becoming law unless approved by a majority of the whole number of both Houses of Congress by roll call vote. Authorizes the Congress to waive this article for any year in which a declaration of war is in effect.
United States · United States Congress · 6 January 1987
Expresses disapproval of the refusal of the U.S.S.R. to recognize the sovereignty of the Baltic Republics. Designates June 14, 1987, as Baltic Freedom Day.
United States · United States Congress · 6 January 1987
Constitutional Amendment - Proclaims the English language to be the official language of the United States. Grants the Congress the power to enforce this article by appropriate legislation.
United States · United States Congress · 17 October 1986
Designates 1988 as the Year of Workers With Disabilities. Authorizes the President to conduct a program promoting the employment and career advancement of the disabled.
United States · United States Congress · 15 October 1986
Declares that the United States extends its sympathies to the people and Government of El Salvador with regard to the recent earthquake. Urges the President to provide appropriate relief to help prevent further loss of life in El Salvador. Declares that the United States is prepared to cooperate with El Salvador in long-term efforts to recover from the effects of the earthquake.
United States · United States Congress · 9 September 1986
Declares specified Indian lands in Utah to be held in trust by the United States for the use and benefit of the Confederated Tribes of the Goshute Reservation. Provides the effective date for determining water rights, and priorities related to such rights, in such lands. Declares that nothing in this Act shall be construed to deprive a person of any valid legal existing right or interest in such lands which such person may hold upon enactment of this Act. Transfers all valid Federal rights of way, leases, the right to receive compensation for the use of such lands, and other land use rights or authorizations, except mining claims, to the Tribe. Requires the Secretary of the Interior, not later than two years after enactment of this Act, to determine the validity of all mining claims that exist on such lands upon enactment of this Act. States that the holders of certain claims (hard rock lode) shall not be entitled to a patent unless otherwise provided by law. Sets forth certain rights and conditions with respect to valid mining claims. Declares that all right, title, and interest of the United States, and the State of Utah, in certain additional lands is to be held in trust by the United States for the use and benefit of the Tribe and to become a part of the Reservation. Requires the Secretary to publish a legal description of such lands in the Federal Register. Authorizes the Secretary to acquire by donation, exchange, or purchase lands or interests in lands adjacent or close to the Reservation for the use and benefit of the Tribe. Sets forth specified conditions on the exchange of such lands. Requires the Secretary to obtain the advice and consent of the Goshute Tribal Business Council before entering into any transaction for such lands. Requires title to such lands to be taken in the name of the United States in trust for the use and benefit of the Tribe and to become a part of the Reservation. Requires the approval of the Secretary before any transfer of certain Federal lands adjacent to the Reservation. Extinguishes the right of the United States to construct ditches and canals on specified Indian lands. Subjects certain Indian lands to Federal law to the same extent as it already applies on the Reservation.
United States · United States Congress · 3 September 1986
General Aviation Accident Liability Standards Act of 1986 - Declares that this Act supersedes any State law regarding liability for general aviation accidents. Establishes guidelines for uniform standards of liability of general aviation manufacturers for general aviation accidents. States that all actions for harm arising out of a general aviation accident shall be governed by the principles of comparative responsibility. Establishes, with specified exceptions, a limitation of actions period of 20 years from delivery of aircraft or harm-causing part to the purchaser for general aviation civil liability brought against a general aviation manufacturer. Declares admissible as evidence certain income tax and payroll tax liability for purposes of establishing financial harm arising out of a general aviation accident. Permits the award of punitive damages if a claimant establishes by clear and convincing evidence that the harm suffered was the direct result of conduct manifesting conscious, flagrant indifference to safety. Establishes a two-year limitation of actions period for actions arising out of a general aviation accident. Declares the intent of the Congress that sanctions be strictly enforced for violations of Rule 11 of the Federal Rules of Civil Procedure, including orders to pay to the other party the reasonable costs of legal fees. Confers original jurisdiction upon the Federal district courts, concurrently with State courts, for all civil actions for harm arising out of a general aviation accident.
United States · United States Congress · 13 August 1986
Amends the Garn-St Germain Depository Institutions Act of 1982 to extend the Deposit Insurance Flexibility Act and the Net Worth Certificate Act until September 15, 1986.
United States · United States Congress · 13 August 1986
Federal Savings and Loan Insurance Corporation and Financial Regulations Act - Title I: Emergency Acquisition - Financial Institutions Emergency Acquisitions Amendments of 1986 - Amends the Garn-St Germain Depository Institutions Act of 1982 to extend until October 1, 1989, the Deposit Insurance Flexibility Act and the Net Worth Certificate Act. Amends the Federal Deposit Insurance Act to revise provisions governing interstate acquisitions of troubled banks involving Federal Deposit Insurance Corporation (FDIC) financial assistance. Reduces from $500,000,000 to $250,000,000 the minimum total asset requirement of a closed bank or a bank in danger of closing (as certified by the appropriate Federal or State chartering authority) which may be acquired by an out-of-State bank or holding company. Authorizes an out-of-State bank or holding company to: (1) acquire a holding company that controls insured bank subsidiaries which hold assets equal to at least $250,000,000, represent a third or more of the total assets of all bank subsidaries of such holding company, and are in danger of closing; (2) acquire such subsidiaries and affiliated banks; or (3) 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. Permits an out-of-State bank to make such an extraordinary acquisition under the Federal Deposit Insurance Act only if such ownership is otherwise specifically authorized. Provides that an out-of-State bank holding company which makes such an acquisition shall, two years after such acquisition, 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. Permits the FDIC to assist in the interstate acquisition of an open or closed bank where such acquisition is authorized under applicable State law. Prohibits the FDIC from providing acquisition assistance to a holding company subsidiary that is not an insured bank. Requires the FDIC to transmit to specified congressional committees an annual 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. Authorizes the FDIC, in order to facilitate the sale or merger of the bridge bank with another insured depository institution, to: (1) make loans or contributions to, make deposits in, purchase assets or securites of, or assume the liabilities of, such bank or the acquiring company; or (2) guarantee the bridge bank or the acquiring company against loss by reason of such sale or merger. Exempts funds of the FDIC, the Comptroller of the Currency, the Federal Home Loan Bank Board, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration (NCUA) from apportionment. Amends the Garn-St Germain Depository Institutions Act of 1982 to repeal the termination date for the NCUA conservatorship and emergency merger authorities. Amends the Federal Credit Union Act to authorize the NCUA Board to impose conservatorship over an insured credit union if: (1) there is a willful violation of a final cease-and-desist order; or (2) there is concealment of documents or assets or refusal to submit documents of the credit union for inspection to any examiner or lawful agent of NCUA Board. Provides that the NCUA Board, as a conservator, has all the powers of the members, directors, officers, and committees of the credit union. Title II: Federal Savings and Loan Insurance Corporation Recapitalization - Federal Savings and Loan Insurance Corporation Recapitalization Act of 1986 - Amends the Federal Home Loan Bank Act to require the Federal Home Loan Bank Board (FHLBB) to charter the Financing Corporation. Requires the Corporation to be operated by a Directorate consisting of the Director of the Office of Finance of the Federal Home Loan Banks (Banks) and two other members selected by the Chairman of the Board from presidents of the Banks or their successors. Requires each Bank to invest in nonvoting capital stock of the Corporation. Limits the cumulative investment of all Banks to $3,000,000,000 and of each Bank to the sum of its required reserves plus its undivided profits, as prescribed by this Act. Sets forth a formula for determining the prorated portion of funds to be invested by each Bank. Restricts dividend payments by a Bank until it invests its required amount. Empowers the Corporation to borrow, to issue stock to banks, to invest in Federal Savings and Loan Insurance Corporation (FSLIC) securities, to issue debt the proceeds of which shall be invested in the FSLIC, and to make semiannual assessments to insured institutions to make interest payments on its obligations. Provides that the Corporation shall have no employees. Authorizes the Directorate to authorize Bank and FHLBB employees to act on behalf of the Corporation. Authorizes Federal Reserve banks to act as depositaries, custodians, and fiscal agents for the Corporation. Provides that the Corporation shall be exclusively liable for its obligations which shall be lawful investments and exempt securities under laws administered by the Securities and Exchange Commission. Prohibits the Corporation from making any net new borrowings after December 31, 1996. Provides that General Accounting Office audits of the Corporation shall not be limited to periods during which Government capital has been invested therein. Provides that Corporation assets not invested in the FSLIC may be used for interest payments on, or issuance costs of, Corporation obligations or shall be invested in the obligations in which Banks are permitted to invest reserves. Limits Corporation investments in non-interest bearing securities purchased at a discount whose face would equal the Corporation's obligations. Requires the liquidation of the Corporation and the retirement of its obligations by December 31, 2026. Creates a Federal Savings and Loan Insurance Corporation Industry Advisory Committee. Directs the Committee to: (1) review, and confer with the FHLBB regarding, quarterly reports and budgets on the activities, receipts, and expenditures of the FSLIC; and (2) submit an annual report to specified congressional committee chairmen on its reports and recommendations to the FHLBB and the FSLIC. Amends the Government Corporations Control Act to establish the Financing Corporation as a mixed ownership Government corporation. Authorizes the FSLIC to issue nonredeemable capital certificates and redeemable nonvoting capital stock which shall be invested in by the Corporation, shall be included as part of the primary reserve of the FSLIC, and shall pay no dividends. Amends the National Housing Act to authorize the FSLIC to use accumulated contributions to its equity return account to pay off and retire its capital stock upon the maturity of all Corporation obligations. Sets forth formulae for calculating the FSLIC's annual contributions to such account beginning in 1997 based on the fraction of the aggregate amount of all accounts of all insured members equal to FSLIC reserves. Provides that certain prescribed actions regarding the FSLIC's primary and secondary reserves shall not apply as long as shares of its capital stock are outstanding. Allows the FHLBB to authorize a Bank to declare and pay dividends out of its undivided profits or legal reserves, only after such Bank has reduced all other reserves to zero, if: (1) the Bank incurs a charge-off or expense related to its investment in the Corporation; and (2) the FHLBB determines that there is an extraordinary need for such Bank's member institutions to receive dividends. States that provisions concerning retirement of the FSLIC's capital stock shall not apply to FSLIC stock issued to the Corporation under this Act. Repeals provisions which authorize the FSLIC, under extraordinary financial conditions, to terminate distribution of shares of its secondary reserve and use such reserve on the same basis as its primary reserve. Reduces the total premiums paid by an insured institution to the FSLIC by the amount of any assessments paid to the Financing Corporation during the same period. Limits the total annual assessment that may be imposed on an insured institution by the FSLIC and the Financing Corporation. Directs the FSLIC to: (1) complete quarterly reports and budgets explaining its activities, receipts, and expenditures for the current and preceding quarters; and (2) submit to specified congressional committee chairmen semiannual reports and budgets on its activities, receipts, and expenditures for the preceding two quarters. Amends the Federal Home Loan Bank Act to entitle any security interest granted to a Federal Home Loan Bank by any member or any affiliate of any member to priority over the claims and rights of any party having rights of a lien creditor, other than the claims of parties that are secured by actual perfected security interests that would be entitled to priority under otherwise applicable law. Amends the National Housing Act to limit the amounts of additional premiums which may be assessed by the FSLIC during 1987 through 1991, unless the FHLBB determines that severe pressures necessitate additional funds. Exempts FDIC-insured banks from certain prohibitions and restrictions governing the conversion into, or merger with, an FSLIC-insured institution. Directs the FSLIC to require any independent contractor, consultant, or counsel it employs for the management or liquidation of an insured institution to fully disclose to all parties with which it deals the extent of its authority to obligate or legally bind, or to make representations on behalf of, the FSLIC.
United States · United States Congress · 26 June 1986
Terrorist Subsidy Prevention Act - Amends the Export Administration Act of 1979 to declare it is U.S. policy to use export controls to restrict the export of: (1) capital, the extension of credit, or the transfer of financial resources to destinations or persons abroad in order to combat terrorism and promote U.S. security; and (2) goods and technology where such export will likely support terrorism against U.S. citizens, will benefit terrorists, or will benefit countries supporting international terrorism. Authorizes the President to restrict the export or transfer of money or other financial assets to the government of a country designated as a country supporting international terrorism. Authorizes the President to restrict the export or transfer of goods and technology if such export will likely support terrorism against U.S. citizens, will benefit terrorists, or will benefit countries supporting international terrorism. Provides for negotiations with other countries to obtain their cooperation with such export controls on capital, goods, and technology. Requires export license applications for the export of capital to be submitted to the Secretary of the Treasury, who shall make all determinations with respect to such application. Requires the annual report on the administration of the Export Administration Act of 1979 to include a report on actions taken to carry out export controls on capital.
United States · United States Congress · 24 June 1986
Deposit Insurance Reform and Competitive Enhancement Act - Title I: Emergency Acquisitions - Financial Institutions Emergency Acquisitions Amendments of 1986 - Amends the Garn-St Germain Depository Institutions Act of 1982 to extend until October 15, 1988, the Deposit Insurance Flexibility Act and the Net Worth Certificate Act. Repeals, effective April 15, 1991: (1) provisions of the Bank Holding Company Act of 1956 which exempt as a prohibited bank holding company activity any insurance activity approved for or conducted by a holding company on or before May 1, 1982; and (2) the amendments made by the remainder of this title. Amends the Federal Deposit Insurance Act to revise provisions governing interstate acquisitions of troubled banks involving Federal Deposit Insurance Corporation (FDIC) financial assistance. Requires the appropriate Federal banking agency to notify and consult with the FDIC when such agency is informed that an out-of-State bank or holding company is considering acquiring an insured bank with total assets of $250,000,000 or more that is in danger of closing. Reduces from $500,000,000 to $250,000,000 the minimum total asset requirement of a closed bank or a bank in danger of closing (as certified by the appropriate Federal or State chartering authority) which may be acquired by an out-of-State bank holding company. Authorizes an out-of-State bank or holding company to: (1) acquire a holding company that controls insured bank subsidiaries which hold assets equal to at least $250,000,000, represent a third or more of the total assets of all bank subsidaries of such holding company, and are in danger of closing; (2) acquire such subsidiaries and affiliated banks; or (3) 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. Permits an out-of-State bank to make an extraordinary acquisition under the Federal Deposit Insurance Act only if such ownership is otherwise specifically authorized. Entitles an out-of-State bank holding company which makes an acquisition to acquire additional banks located in the three largest metropolitan areas in any State in which the acquired bank is located to the same extent as permitted for an in-State 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. Directs the FDIC, where the bank to be acquired is a minority-controlled bank, to seek an offer by another minority-controlled institution first. Permits the FDIC to assist in the interstate acquisition of an open or closed bank where such acquisition is authorized under applicable State law. Prohibits the FDIC from providing acquisition assistance to a holding company subsidiary that is not an insured bank. Amends the Bank Holding Company Act to set forth provisions governing interstate acquisitions of troubled banks not involving FDIC financial assistance. Permits a bank holding company to acquire: (1) a bank located in another State if such bank has total assets of $250,000,000 or more and is in danger of closing; (2) two or more affiliated banks in danger of closing that together hold assets of at least $250,000,000 representing a third of the assets of all affiliated banks; (3) banks affiliated with, or the bank holding company controlling, such an acquired bank if the acquired bank's assets represent at least a third of the total assets of all affiliated banks; and (4) additional banks located in the three largest metropolitan areas of the State in which an acquired bank is located to the same extent as permitted for an in-State bank holding company. Prohibits a bank holding company which makes such an acquisition from being required to divest any other bank or from being prevented from acquiring any other bank by reason of such acquisition. Requires approval of any such acquisition by the board of directors of the bank being acquired or of a bank holding company that controls such bank. Prohibits a bank in danger of closing or the controlling bank holding company from entering into any discussions over the interstate acquisition of such bank unless: (1) the appropriate State bank supervisor has been notified; and (2) such bank or holding company has attempted to arrange an acquisition not involving FDIC assistance or interstate provisions. Requires the Board of Governors of the Federal Reserve System to consult with the appropriate State bank supervisor before approving an interstate acquisition of a troubled bank and to allow the supervisor at least 48 hours to object to such acquisition. Prohibits the Board from approving such acquisition if the supervisor certifies that persons who are likely to satisfy all regulatory requirements have offered to acquire the bank through a transaction not requiring FDIC assistance or interstate provisions, unless the Board determines that such persons do not have the necessary financial resources or do not meet regulatory requirements. Authorizes the Board to dispense with bank acquisition notice and hearing requirements under the Bank Holding Company Act and to reduce the postapproval waiting period to five days (or eliminate such period when immediate action is necessary to prevent the probable failure of the bank) if the Board has received a Federal or State chartering authority's certification that the bank is in danger of closing. Title II: Federal Deposit Insurance - Federal Deposit Insurance Improvements Act of 1986 - Amends the Federal Deposit Insurance Act to authorize the FDIC to set the annual assessment rate for each FDIC-insured bank, based on the risks the bank may present to the Permanent Insurance Fund, at not less than one-twelfth of one percent nor greater than one-sixth of one percent. Requires a bank's assessment base additions to include such secured loans and other secured extensions of credit as the FDIC may specify. Eliminates a requirement that the FDIC Board of Directors provide an insured institution and its supervisory authority up to 120 days to correct any violation of law or any unsound or unsafe practice or condition before terminating the bank's insured status. Declares that a temporary cease and desist order issued by the appropriate Federal banking agency may place limitations on the activities or functions of an insured bank or its directors, officers, employees, agents and other persons participating in bank affairs or may bar any such person from conducting bank affairs. Authorizes a Federal banking agency that has removed a person from office at one insured bank to prohibit such person from participating in the affairs of any insured bank without the agency's prior written approval. Authorizes such an agency to proceed against any person who has acted as an officer or director of an insured bank during the year preceding the date on which the agency institutes proceedings against such person or bank. Sets forth the order of and priorities for payment of unsecured claims against the estate of an FDIC-insured bank or insured branch of a foreign bank that is closed. Subrogates the FDIC to the rights of any depositor of any closed insured bank to the extent of the deposit payments made to such depositor. 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 determines: (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 or 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. Authorizes the FDIC, in order to facilitate the sale or merger of the bridge bank with another insured depository institution, to: (1) make loans or contributions to, make deposits in, or purchase assets or securities of such bank or the acquiring company; or (2) guarantee the bridge bank or the acquiring company against loss by reason of such sale or merger. Requires a State nonmember bank to notify the FDIC (current law requires FDIC approval) concerning moving any domestic branch or establishing and operating a new domestic branch. Title III: Federal Savings and Loan Insurance Corporation Recapitalization - Federal Savings and Loan Insurance Corporation Recapitalization Act of 1986 - Amends the Federal Home Loan Bank Act to require the Federal Home Loan Bank Board (FHLBB) to charter the Financing Corporation. Requires the Corporation to be operated by a Directorate consisting of the Director of the Office of Finance of the Federal Home Loan Banks (Banks) and two other members selected by the Chairman of the Board from presidents of the Banks or their successors. Requires each Bank to invest in nonvoting capital stock of the Corporation. Limits the cumulative investment of all Banks to $3,000,000,000 and of each Bank to the sum of its required reserves plus its undivided profits, as prescribed by this Act. Sets forth a formula for determining the prorated portion of funds to be invested by each Bank. Restricts dividend payments by a Bank until it invests its required amount. Empowers the Corporation to borrow, to issue stock to Banks, to invest in Federal Savings and Loan Insurance Corporation (FSLIC) securities, and to issue debt the proceeds of which shall be invested in the FSLIC. Provides that the Corporation shall have no employees. Authorizes the Directorate to authorize Bank and FHLBB employees to act on behalf of the Corporation. Authorizes Federal Reserve banks to act as depositaries, custodians, and fiscal agents for the Corporation. Provides that the Corporation shall be exclusively liable for its obligations which shall be lawful investments and exempt securities under laws administered by the Securities and Exchange Commission. Prohibits the Corporation from making any net new borrowings after December 31, 1996. Provides that General Accounting Office audits of the Corporation shall not be limited to periods during which Government capital has been invested therein. Directs the Corporation to invest assets that it does not invest in the FSLIC in the same obligations in which Banks are permitted to invest reserves. Limits the amount of issued and outstanding obligations of the Corporation. Requires the liquidation of the Corporation and the retirement of its obligations by December 31, 2026. Amends the Government Corporations Control Act to establish the Corporation as a mixed ownership Government corporation. Authorizes the FSLIC to issue nonredeemable capital certificates and redeemable nonvoting capital stock which shall be invested in by the Corporation, shall be included as part of the primary reserve of the FSLIC, and shall pay dividends equal to the Corporation's interest payments on its obligations, issuance costs, and reasonable direct administrative costs, with specified exceptions. Authorizes the FSLIC to use accumulated contributions to its equity return account to pay off and retire its capital stock upon the maturity of all Corporation obligations. Sets forth formulae for calculating the FSLIC's annual contributions to such account beginning in 1997 based on the fraction of the aggregate amount of all accounts of all insured members equal to FSLIC reserves. Provides that certain statutorily prescribed actions regarding the FSLIC's primary and secondary reserves shall not apply as long as shares of its capital stock are outstanding. Allows the FHLBB to authorize a Bank to declare and pay dividends out of its undivided profits or legal reserves, only after such Bank has reduced all other reserves to zero, if: (1) the Bank incurs a charge-off or expense related to its investment in the Corporation; and (2) the FHLBB determines that there is an extraordinary need for such Bank's member institutions to receive dividends. Provides that provisions concerning retirement of the FSLIC's capital stock shall not apply to FSLIC stock issued to the Corporation under this Act. Requires that a building and loan association, savings and loan association, cooperative bank, homestead association, or savings bank be an "insured institution" under the National Housing Act in order to be eligible to become a member of, or a nonmember borrower of, a Federal Home Loan Bank. Title IV: Thrift Institutions Investments - Thrift Institutions Investment Act of 1986 - Amends the National Housing Act to apply the restrictions on bank holding company affiliate transactions under the Federal Reserve Act to savings and loan holding company affiliate transactions. Excludes as a "covered transaction" any extension of credit by an institution insured by the FSLIC to the holder of a credit card issued by an insured institution if the proceeds are used solely to satisfy charges incurred with the credit card and the card can be used to finance purchases at unaffiliated firms. Prohibits any State from: (1) restricting any insured institution affiliation not restricted under Federal law; or (2) imposing on an insured institution affiliate or its officers or employees any restriction not imposed on an unaffiliated firm in the same line of business or its officers or employees. Allows securities subsidiaries of savings and loan holding companies to trade and engage in secondary market transactions in up to five percent of the outstanding voting securities of any nonsubsidiary insured institution or savings and loan holding company. Increases from 15 to 30 percent of consolidated net worth the amount of debt that certain nondiversified savings and loan holding companies may issue without written approval by the FSLIC if the holding company's insured institutions have been in compliance with reserve requirements for a specified period. Amends the Depository Institutions Management Interlocks Act to permit dual service by a management official (otherwise prohibited by such Act) of a company that becomes a despoitory holding company by acquiring a failing insured institution, unless the Federal Home Loan Bank Board determines that such dual service could not be structured or limited to preclude anticompetitive results. Amends the Bank Holding Company Act of 1956 to permit the following arrangements between thrift subsidiaries of a bank holding company and such thrift's affiliates: (1) participating in joint sales or marketing arrangements; (2) cross-advertising, providing referral services, or making available information on any project or service provided by the bank holding company; or (3) obtaining and using for marketing purposes the customer lists of an bank holding company subsidiary. Permits bank holding companies which acquire a failing institution to invest in service corporations in which insured institutions are authorized to invest under the Home Owners' Loan Act of 1933. Title V: Federal Savings and Loan Insurance Corporation - Savings Institutions Supervisory Amendments of 1986 - Amends the National Housing Act and the Home Owners' Loan Act to: (1) extend the authority of the FSLIC and the FHLBB, respectively, to provide for the issuance of a cease and desist order to any institution-related or savings and loan association-related party; (2) provide that an affirmative action required under such an order includes restitution, rescission, the disposal of loans or assets, or guarantees against loss; and (3) extend the authority of the FSLIC and the FHLBB over any wholly or partly owned service corporation subsidiary. Authorizes the FSLIC and the FHLBB, pending completion of administrative proceedings for such a cease and desist order, to issue a temporary order with respect to conduct likely to cause some dissipation of assets or earnings of the institution or association concerned or some weakening of the condition of such institution or association. Limits the duration of such a temporary order to 90 days but allows such temporary order to be reissued. Authorizes the FSLIC and the FHLBB to issue a temporary order requiring cessation of activities if the institution's or association's books and records are so incomplete or inaccurate that the FSLIC or FHLBB is unable to determine the entity's financial condition. Revises the requirement that the FSLIC or FHLBB determine that an institution or association has suffered or will suffer a substantial financial loss or other damage as a result of prohibited conduct of an institution-related or association-related party in order to suspend or remove such party or to prohibit such party from participating in institution or association affairs by providing that such other damage includes any damage which may threaten to impair public confidence in the institution or association. Forbids any person facing suspension, removal, or a prohibition against participating in institution or association affairs from participating in the affairs of any federally-insured institution without the approval of the appropriate Federal regulatory authority. Authorizes the FSLIC to set the annual insurance assessment rate for each insured institution based on the risks such institution presents to the insurance fund. Limits the annual assessment rate to a minimum of one-twelfth of one percent and a maximum of one-sixth of one percent of the total amount of all accounts of the insured members of such institution. Amends the Home Owners' Loan Act of 1933 to increase the authorized level of investment in service corporations by a Federal savings and loan association or mutual savings bank to five percent of assets for an association which meets the regulatory capital requirements established by the FSLIC. Amends the National Housing Act to repeal rebidding provisions in emergency thrift acquisitions. Title VI: Financial Institutions Competitive Enhancement Amendments to the Banking Act of 1933 - Amends the Banking Act of 1933 to permit a member bank of a Federal reserve bank to be affiliated with a depository institution securities affiliate. Permits an officer, director, or employee of any member bank to serve at the same time as an officer, director, or employee of any of its depository institution securities affiliates. Amends the Securities Act of 1933 to exempt from registration requirements transactions involving offers of sales of equity securities in connection with the acquisition of a bank by a bank holding company or of an insured institution by a saving and loan holding company as part of a reorganization to form a new holding company in which the bank or institution shareholders maintain their same proportionate interests (except for changes resulting from the exercise of dissenting shareholder rights). Amends the Securities Exchange Act of 1934 to provide that the Securities and Exchange Commission is the appropriate regulatory agency over securities transactions of depository institution securities affiliates. Provides for such affiliate representation on the Municipal Securities Rulemaking Board. Amends the Bank Holding Company Act of 1956 to redefine a "bank" to include any institution which is insured by the Federal Deposit Insurance Corporation or which makes commercial loans and accepts demand deposits or other deposits withdrawable by check or similar means for payment to third parties. Excludes from such definition: (1) any foreign bank having an insured or uninsured branch in the United States; (2) mutual savings banks, savings banks, credit unions, thrifts, and savings and loan associations which are federally insured or eligible to apply for such insurance; (3) certain trust companies owned by a registered securities exchange, one or more banks, or one more bank holding companies; (4) certain industrial loan companies chartered by Hawaii; and (5) an institution insured by the FSLIC. Redefines "thrift institution" to include any State-chartered savings bank the holding company of which is registered with the FSLIC. Defines "depository institution securities affiliate" and "commercial loans" for purposes of such Act. Requires 30 days' prior notification to the Board of Governors of the Federal Reserve System (current law requires approval by the Board) for a bank to reorganize as a holding company where the shareholders' ownership interests remain the same proportionally (except for changes resulting form the exercise of dissenting shareholder rights). Provides for the divestiture of companies the acquisition of which would have been prohibited due to the retroactive application of this Act. Allows companies which become bank holding companies due to the enactment of this Act to maintain otherwise prohibited nonbanking interests if, within three years, they acquire a failing insured institution or convert a held institution into an FSLIC-insured institution. Permits bank holding companies to acquire or retain ownership or control of shares of any company the activities of which are: (1) closely related to banking or managing or controlling banks; (2) of a financial nature and designed to enable the companies to adjust to technological innovations in banking services; or (3) of a financial nature and substantially identical to products or services offered by competitive nonbanking concerns. Prohibits any holding company from conducting such authorized activity unless it provides the Board with 60 days' notice and the Board does not disapprove the proposed activity within such period or suspend such period in order to obtain more information. Directs the Board: (1) in determining whether to disapprove such proposed activity, to consider the managerial and financial resources of the companies involved; (2) to issue orders setting forth its reasons for disapproving or failing to disapprove a proposed activity; and (3) to issue regulations designating particular activities that are closely related to banking. Authorizes the Board to approve or deny the application of a bank holding company to acquire control of a bank in danger of closing or its affiliated banks without providing for notice and a hearing. Permits bank holding companies to acquire or retain ownership or control of shares of a depository institution securities affiliate. Prohibits any despository institution controlled by a holding company that establishes or acquires a securities affiliate from performing securities activities one year after such affiliate commences securities activities. Authorizes such a securities affiliate to: (1) conduct any securities activities which a national bank is not prohibited from conducting; (2) deal in and underwrite all obligations issued or guaranteed by or on behalf of a State or any political subdivision thereof (with specified exceptions for industrial development bonds); (3) organize, sponsor, operate, and control an investment company; (4) deal in and underwrite mortgage-backed securities; and (5) underwrite, deal in, sell, and distribute commercial paper. Amends the Bank Service Corporation Act to authorize an insured bank or a bank holding company with total assets not exceeding $240,000,000 to make the same investments in service corporations as are authorized for insured institutions under the Home Owners' Loan Act of 1933. Amends the Bank Holding Company Act (BHCA) to require the Federal Reserve Board to: (1) accept in fulfillment of its reporting requirements the reports required to be submitted by nonbank subsidiaries of bank holding companies to the Securities and Exchange Commission under the Securities Exchange Act of 1934; and (2) minimize the scope and frequency of examinations of such subsidiaries by using reports to public or private bodies and by focusing such examinations on the activities or financial condition of such subsidiaries that may have a materially adverse effect on the safety and soundness or financial condition of a subsidiary bank of the bank holding company. Prohibits any State from prohibiting the affiliation of a national banking association with a company which engages only in permissible activities under BHCA. Prohibits a State-chartered bank subsidiary of a bank holding company from conducting activities or making investments outside the State where it is chartered unless those activities are permissible for a bank holding company under such Act. Subjects Board orders regarding company or securities affiliate acquisitions by bank holding companies under such Act to judicial review solely on questions relating to any Board finding: (1) on whether a proposed activity is permissible for a bank holding company; and (2) regarding unfair competition. Prohibits the reviewing court from: (1) staying the Board's order approving such acquisition pending judical review; or (2) overturning the Board's findings unless demonstrated to be plainly in error and at variance with the facts. Permits the court to assess litigation fees against any party that petitions for judical review of such an order of the Board if the court finds such petition to be nonmeritorious. Permits certain State-chartered savings banks which become bank holding company subsidiaries to continue to conduct any activities they are permitted to conduct under State law. Terminates such activities within two years unless extended by the Board or if the savings bank merges with or acquires an insured bank, with specified exceptions. Provides that a State-insured depository institution that is a holding company or a holding company subsidiary is not required to be federally insured. Amends the Federal Reserve Act to permit a member bank and its subsidiaries to engage in certain transactions only under terms and circumstances that are substantially the same as, or at least as favorable to such bank or subsidiary as those applicable to transactions with nonaffiliated companies. Prohibits a member bank or its affiliates from publishing, agreeing, or stating that the bank shall be responsible for the affiliates' obligations. Permits a member bank and its affiliates, excluding any depository institution securities affiliate, to use similar names. Prohibits a member bank and any subsidiary from: (1) purchasing as fiduciary any securities or other assets from any affiliate unless such purchases are permitted under the instrument creating the fiduciary relationship, by court order, or by law of the jurisdiction under which the trust is administered; or (2) acquiring any security a principal underwriter of which is an affiliate to such bank unless such acquisition has been approved by a majority of the directors of the bank who are not officers or employees of the bank or any affiliate thereof. Includes as a "covered transaction" of a member bank's affiliate a debit in favor of an affiliate in excess of finally collected funds credited to such account, with specified exceptions. Amends the Federal Deposit Insurance Act to apply provisions prohibiting affiliations between member banks and securities organizations and dual service by an officer, director, or employee of a member bank as a person engaged in securities activities to nonmember insured banks, unless such affiliation or dual service arrangement existed before a specified date. Amends the National Housing Act to define "depository institution securities affiliate" for purposes of such Act. Provides that certain restrictions on activities of savings and loan holding companies and multiple savings and loan holding companies that are not insured institutions shall not apply to a unitary savings and loan holding company that acquires an insured institution or to savings and loan holding companies that conducted prohibited activities lawfully as of a specified date. Sets forth conditions for the termination of such exempted activities by the FSLIC. Includes as permissible activities of savings and loan holding companies: (1) activities currently permissible for multiple savings and loan holding companies; (2) acquiring shares of any bank; (3) activities determined by the Federal Reserve Board to be closely related to banking or managing or controlling banks; and (4) engaging in the activities of a depository institution securities affiliate or acquiring shares of any export trading company as authorized and restricted under the Bank Holding Company Act of 1956 for bank holding companies. Prohibits any holding company from conducting such permissible activity unless it provides the FSLIC with 60 days' notice and the FSLIC does not disapprove the proposed activity within such period or suspend such period in order to obtain more information. Directs the FSLIC, in determining whether to disapprove such proposed activity, to consider the managerial and financial resources of the companies involved and to compare the public benefits and possible adverse effects of the activity. Exempts from such activity restrictions any savings and loan holding company the sole insured institution subsidiary of which is a qualified thrift lender. Sets forth asset investment requirements of a qualified thrift lender. Permits the FSLIC to grant exceptions from such requirements when it determines that extraordinary circumstances exist. Provides that an FSLIC order concerning the approval of the conduct of activity by a savings and loan holding company shall be subject to judicial review solely with respect to the FSLIC's finding regarding unfair competition and that the activity is permissible. Prohibits the court from staying the effectiveness of an FSLIC order approving an activity pending judicial review. Authorizes the court to assess litigation costs against any petitioner for judicial review of an FSLIC order if the court finds the petition to be nonmeritorious. Prohibits the court from overturning the FSLIC's findings unless they are demonstrated to be plainly in error and at variance with the facts. Provides that an FDIC-insured savings bank which meets the qualified thrift lender requirements shall, upon application, be deemed to be an insured institution. Amends the Home Owners' Loan Act of 1933 to delete provisions restricting Federal savings and loan associations to offering demand deposits to commercial or agricultural customers only. Amends the Federal Home Loan Bank Act to require members of the Federal Home Loan Bank System to meet the qualified thrift lender requirements to be eligible for advances from a Federal Home Loan Bank. Empowers a national bank to invest up to ten percent of its assets in tangible personal property for rental or sale. Amends the National Housing Act to authorize an insured institution operating in mutual form to reorganize to become a holding company by: (1) chartering and transferring its assets and liabilities to an interim savings institution; or (2) incorporating a mutual savings institution holding company, chartering an interim savings institution, and merging the existing mutual institution with the interim savings institution. Subjects such a reorganization to disapproval by the Federal Home Loan Bank Board within a 60-day notice period. Sets forth restrictions on the activities of such a holding company. Amends the Homeowners' Loan Act of 1933 to permit Federal thrifts to invest in the securities of a trust or corporation the stock of which is available for purchase only by Federal thrifts and which engages solely in the business of issuing or servicing mortgage related securities. Title VII: Bankers Banks - Amends the Depository Institution Management Interlocks Act to revise the definition of "affiliation" to exclude a relationship in which one of the corporations is a federally-insured bank the voting securities of which are held by other banks or by only persons who are officers of other banks. Amends the Bank Holding Company Act of 1956 to revise the definition of "bank" to include a State chartered bank or a national bank if: (1) such bank or its parent holding company is owned exclusively by depository institutions; and (2) such bank, its parent holding company, and all subsidiaries thereof are organized to engage exclusively in providing services for depository institutions, their parent holding companies, subsidiaries thereof, and the officers, directors, and employees of each. Revises provisions permitting bank holding companies to invest in export trading companies. Title VIII: Credit Union Amendments - Amends the Garn-St Germain Depository Institutions Act of 1982 to repeal the termination date for the National Credit Union Administration (NCUA) conservatorship and emergency merger authorities. Amends the Federal Credit Union Act to reduce from 90 to 30 days the period the NCUA Board must allow State regulators to respond to its proposed imposition of conservatorship upon a State-chartered, NCUA-insured credit union. Authorizes the NCUA Board to impose conservatorship over an insured credit union if: (1) there is a willful violation of a final cease-and-desist order; or (2) there is concealment of documents or assets or refusal to submit documents of the credit union for inspection to any examiner or lawful agent of NCUA Board. Provides that the NCUA Board, as a conservator, has all the powers of the members, directors, officers, and committees of the credit union. Extends to employees and agents of federally-insured credit unions the Board's authority to remove, suspend, or prohibit an individual from participating in credit union affairs. Eliminates the requirement that Federal credit unions obtain faithful performance bonds for financial officers and employees. Requires a credit union's board of directors to select membership officers from among members of the credit union. (Current law requires such officers to be selected from among members of the board.) Authorizes the NCUA Board to allow credit unions to make second mortgage and home improvement loans for periods exceeding 15 years. Authorizes the Board to acquire and dispose of real or personal property without regard to laws applicable to other Federal agencies. Authorizes a Federal credit union to serve as a trustee or custodian of: (1) any trust or custodial arrangement created in the United States or its territories or possessions as part of a deferred compensation plan; or (2) an individual retirement account within the meaning of the Internal Revenue Code or similar laws of a U.S. territory or possession. Authorizes a Federal credit union to pledge its assets as security for funds deposited by the Government, an Indian tribe, and any State or local government or political subdivision thereof. Title IX: Consumer Leases - Consumer Lease and Lease-Purchase Agreement Act - Amends the Consumer Credit Protection Act to revise disclosure requirements, including advertisement disclosure requirements, for consumer leases and to establish separate disclosure requirements for lease-purchase agreements. Requires information disclosed pursuant to such requirements to be segregated from all other terms and information provided. Includes among revised disclosures for consumer leases: (1) the total lease cost; (2) the amount of any required security deposit; (3) statements explaining certain information about the consumer's liability based on the residual value of the property; and (4) a statement referring the consumer to the appropriate lease document for information concerning other possible costs. Requires the following information to be disclosed for lease-purchase agreements: (1) the number, individual amount, timing, and total amount of payments; (2) a statement that the consumer will not own the property until all payments are made; (3) a statement referring the consumer to the contract for an explanation of other possible costs; (4) a statement that the consumer is responsible for the fair market value of lost, stolen, damaged, or destroyed property; and (5) a statement indicating whether the property is new or used. Requires that advertisements specify whether the advertised transaction is a lease or a lease-purchase agreement. Provides that a renegotiation is a new lease or agreement requiring new disclosures. Requires no disclosures for a lease or agreement extension. Requires lessors to pay consumers' attorney fees only in unsuccessful suits to collect more than the prescribed maximum amount at the end of a lease. Prescribes civil and criminal penalties for violations and outlines defenses. Authorizes civil actions against lessor assignees only if a violation is apparent on the face of the disclosure statement. Title X: Fair Deposit Availability - Fair Deposit Availability Act of 1986 - Sets forth depository institution disclosure requirements concerning: (1) the availability for withdrawal of funds deposited by check or similar instrument into a deposit account; (2) fees and charges assessed against deposit accounts; and (3) the computation of interest on deposited funds pending the receipt of provisional credit for the check or instrument. Requires the computation of interest on such deposited funds to begin no later than the date the institution receives provisional credit, unless the computation of interest begins at a later date for all deposits, including cash deposits, made to the account. Requires the Federal Reserve Board to publish for comment and implement within three years a regulation to improve the check clearing system used by depository institutions in order to make deposits by a check drawn on: (1) local institutions available for withdrawal after one business day; and (2) other institutions available after three business days. Requires the Board to establish an Expedited Funds Availability Council to advise and consult with the Board in the exercise of its functions under this Act. Requires the Secretary of the Treasury to require that funds deposited by a check drawn on the Treasury, which is endorsed for deposit by a customer with an established relationship with the depository institution, be available for withdrawal when the depository institution is given provisional credit for that check. Sets forth provisions governing the civil liability of institutions that fail to comply with this Act. Requires the Board to prepare a study and submit its findings to the Congress on the effect of improvements and changes in the check clearing system. Title XI: Credit Cards - Fair Credit Card Act of 1986 - Amends the Truth in Lending Act to direct the Federal Reserve Board to issue regulations requiring that credit card solicitations mailed to consumers disclose information about finance charge conditions, interest rates, annual fees, and related charges, and, where open-end credit is not automatically accessed through use of the card, required payment of charges upon receipt of a periodic statement. Requires the balance upon which finance charges may be imposed to be computed using an average daily balance method or alternative method which benefits the consumer. Directs the Federal Reserve Board to issue regulations on such methods. Title XII: Miscellaneous - Exempts funds of the FDIC, the Comptroller of the Currency, the FHLBB, the FSLIC, and the NCUA from apportionment or from sequestration or reduction of obligation limitations under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). Authorizes nonprofit political organizations to hold negotiable order of withdrawal (NOW) accounts. Amends the Federal Home Loan Bank Act to allow the FHLBB and the FSLIC to accept payment and reimbursement from Federal and non-Federal agencies and organizations for travel, subsistence, and other necessary expenses incurred by members and employees in attending meetings concerning FHLBB and FSLIC functions. Amends the Bank Holding Company Act of 1956 and the National Housing Act to prohibit the Student Loan Marketing Association from owning or controlling any insured bank, mutual savings bank, savings bank, or savings and loan association.
![Official portrait of Sen. Garn, E. J. (Jake) [R-UT]](https://www.congress.gov/img/member/g000072_200.jpg)