and inserting "Commission", (E) by striking out "his" the second time it appears and inserting "the", and (F) by inserting "of the Commission" immediately before the period at the end thereof.

(b) (1) The first sentence of the second paragraph of such section (12 U.S.C. 481, second paragraph) is amended by striking out "Comptroller of the Currency" and inserting "Commission".

(2) The second sentence of such paragraph is amended (A) by inserting "as are not insured by the Federal Deposit Insurance Corporation" immediately after "The expense of examinations of such affiliates", and (B) by striking out "Comptroller of the Currency" and inserting "Commission".

(3) The proviso in the third sentence of such paragraph is amended by striking out "Comptroller of the Currency" and inserting "Commission".

(4) The fourth and fifth sentences of such paragraph are repealed.

(5) The last sentence of such paragraph is amended by striking out "Comptroller of the Currency" and inserting "Commission".

(c) (1) The first sentence of the third paragraph (12 U.S.C. 482, first paragraph, relating to salaries of examiners and expenses of examinations) is amended by striking out "Comptroller of the Currency" and inserting "Federal Banking Commission".

(2) The remaining sentences of such paragraph are repealed.

(d) The seventh paragraph of such section (12 U.S.C. 482, second paragraph, relating to expenses of examining trust departments of national banks) is amended to read as follows:

"All banks whose fiduciary activities are examined by the Federal Banking Commission shall be assessed by the Commission a fee adequate to cover the expense of such examination."

(e) The fifth paragraph of such section (12 U.S.C. 483, relating to special examinations of member banks by Federal Reserve banks) is repealed.

(f) The paragraph which, prior to the amendments made by this Act, was the eighth paragraph of such section (12 U.S.C. 486, relating to waiver of reports and examinations of affiliates) is amended (A) by striking out "Board of Governors of the Federal Reserve System or the Comptroller of the Currency, as the case may be," and inserting "Federal Banking Commission" and (B) by striking out "said Board or Comptroller, respectively," and inserting "Commission".

SEC. 187. The second sentence of section 5208 of the Revised Statutes (12 U.S.C. 501, relating to false certification of checks) is amended (A) by striking out "Comptroller of the Currency" and inserting "Federal Banking Commission" and (B) by striking out "Board of Governors of the Federal Reserve System" the second time it appears and inserting "Commission".

SEC. 188. Subsections (a) and (e) of section 208 of the Federal Farm Loan Act (12 U.S.C. 1091 and 1095, relating to availability of records to the Farm Credit Administration) are amended by striking out "Comptroller of the Currency" and inserting "Federal Banking Commission".

SEC. 189. Subsection (a) of section 22 of the Federal Home Loan Bank Act (12 U.S.C. 1442, relating to availability of records to the Federal Home Loan Bank Board and Federal home loan banks) is amended by striking out "Comptroller of the Currency" and inserting "Federal Banking Commission".

SEC. 190. (a) Subsection (a) of the first section of the Act of October 23, 1962, entitled "An Act to authorize certain banks to invest in corporations whose purpose is to provide clerical services for them, and for other purposes" (12 U.S.C. 1861 (a)) is amended to read as follows:

"(a) A bank shall be considered subject to examination by the Federal Banking Commission regardless of whether or not such Commission is accepting reports of State examinations of such bank in lieu of Federal examinations."

(b) Subsection (c) of such section is amended by striking out "a Federal supervisory agency" and inserting "the Federal Banking Commission".

SEC. 191. Section 3 of the Act of October 23, 1962 (12 U.S.C. 1863), is amended by striking out "a Federal supervisory agency" and inserting "the Federal Banking Commission".

SEC. 192. Section 5 of the Act of October 23, 1962 (12 U.S.C. 1865), is amended (1) by striking out "(a)", (2) by striking out "a Federal supervisory agency" and inserting "the Federal Banking Commission", (3) by striking out "agency prescribed in subsection (b) of this section" and inserting "Commission", (4) by striking out "such agency" both times it appears and inserting "the Commission" each time, and (5) by striking out subsection (b).

SEC. 193. Section 581 of the Internal Revenue Code of 1954 (relating to the definition of bank) is amended by striking out "under authority of the Comptroller of the Currency".

SEC. 194. Paragraph (2) of subsection (a) of section 584 of the Internal Revenue Code of 1954 (relating to common trust funds) is amended by striking out "Board of Governors of the Federal Reserve System or the Comptroller of the Currency" and inserting "Federal Banking Commission".

SEC. 195. Section 601 of the Internal Revenue Code of 1954 (relating to the special deduction for bank affiliates) is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

CHAPTER 8

AMENDMENTS TO THE FEDERAL RESERVE ACT AND THE BANK HOLDING COMPANY ACT OF 1956 WITH CERTAIN RELATED AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954

SEC. 201. The third paragraph of the first section of the Federal Reserve Act (12 U.S.C. 221, defining certain terms) is amended by adding at the end thereof the following new sentence: "The term 'Commission' shall mean the Federal Banking Commission except where the context otherwise indicates."

SEC. 202. The second sentence of the sixth paragraph (12 U.S.C. 501a, relating to the penalty for violation of the Federal Reserve Act by national banks) of section 2 of the Federal Reserve Act is amended (1) by striking out ", under direction of the Board of Governors of the Federal Reserve System,", and (2) by striking out "Comptroller of the Currency in his own name" and inserting "Federal Banking Commission".

SEC. 203. The first sentence of the second paragraph of section 6 of the Federal Reserve Act (12 U.S.C. 288, relating to a national bank discontinuing operations) is amended (1) by striking out "Comptroller of the Currency" and inserting "Federal Banking Commission" and (2) by striking out "he" and inserting "the Commission".

SEC. 204. (a) In this section, references to paragraphs refer to paragraphs of section 9 (relating to State banks as members) of the Federal Reserve Act in the numerical order of such paragraphs immediately prior to the amendments made by this Act.

(b) The first paragraph (12 U.S.C. 321, first paragraph, relating to applications for membership by State banks) is amended by striking out "Board of Governors of the Federal Reserve System" each place it appears therein and inserting "Federal Banking Commission" in lieu thereof.

(c) The second paragraph (12 U.S.C. 321, second paragraph, relating to continued membership in the Federal Reserve System upon conversion, merger, or consolidation) is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

(d) The third paragraph (12 U.S.C. 321, third paragraph, relating to branches of State member banks) is amended (1) by striking out "except that the approval of the Board of Governors of the Federal Reserve System, instead of the Comptroller of the Currency," and inserting ". The approval of the Federal Banking Commission", (2) by striking out, in the last sentence, "Board" and inserting "Commission", and (3) by striking out "(except within the District of Columba)".

(e) The fourth paragraph (12 U.S.C. 322, relating to factors to be considered on applications of State banks for membership) is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

(f) The fifth paragraph (12 U.S.C. 323, relating to payment of subscription) of such section is amended by striking out "Board of Governors of the Federal Reserve System" the first time it appears therein and inserting "Federal Banking Commission".

(g) (1) The first sentence of the sixth paragraph (12 U.S.C. 324, relating to provisions of law to be complied with, and reports of conditions, by State member banks) is amended by striking out "; except that any reference in any such provision to the Comptroller of the Currency shall be deemed for the purposes of this sentence to be a reference to the Board of Governors of the Federal Reserve System".

(2) The second sentence of such paragraph is amended by striking out "Reserve bank of which they become a member" and inserting "Banking Commission".

(3) The third sentence of such paragraph is amended (A) by striking out "Reserve bank” and inserting “Banking Commission" and (B) by striking out “the Board of Governors of the Federal Reserve System" and inserting "it".

(4) The fourth sentence of such paragraph is amended (A) by striking out "Reserve bank” and inserting "Banking Commission", and (B) by inserting “for the use of the Federal Deposit Insurance Corporation" immediately before the period at the end thereof.

(5) The fifth sentence of such paragraph is amended (A) by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission" and (B) by striking out "Board" and inserting "Commission".

(6) Such paragraph is further amended by adding at the end thereof the following new sentence: "The Commission may accept, in lieu of any report of conditions otherwise required by this paragraph, a certified copy of a report made to a State banking supervisory authority if, in the judgment of the Commission, the report to the State agency furnishes, in a form satisfactory to the Commission, substantially the same information the Commission would require in a report made directly to it."

(h) The seventh paragraph (12 U.S.C. 325, relating to examinations) is amended (1) by striking out "Board of Governors of the Federal Reserve System or of the Federal reserve bank" and inserting "Federal Banking Commission" and (2) by striking out "Board of Governors of the Federal Reserve System" and inserting "Commission".

(i) The eighth paragraph (12 U.S.C. 326, relating to acceptance of State examinations, expenses, and reports of examinations) is amended to read as follows:

"During any period in which examinations made by or for a State banking supervisory agency are, in the judgment of the Commission, adequate to serve the purposes for which examinations are authorized by the preceding paragraph, the Commission may, in its discretion, suspend the making of Federal examinations of State member banks in such State and in lieu thereof accept reports of the examinations made by or on behalf of the State agency. No such suspension shall affect the right of the Commission to make special examinations of individual banks in such State at any time. Copies of any report of an examination made or accepted by the Federal Banking Commission may, in the discretion of the Commission, be furnished to the State authorities having supervision of the bank examined, to officers, directors, or the receiver of such bank, and to any other proper persons."

(j) The ninth paragraph (12 U.S.C. 327, relating to forfeiture of membership) is amended (A) by striking out "Board of Governors of the Federal Reserve System" each place it appears therein and inserting "Federal Banking Commission" in lieu thereof the first time, and "Commission" in lieu thereof each time thereafter, and (B) by striking out "board" and inserting "Commission".

(k) (1) The first sentence of the tenth paragraph (12 U.S.C. 328, relating to voluntary withdrawal from membership) is amended by striking out "Board of Governors of the Federal Reserve System" the first and second time it appears and inserting "Federal Banking Commission".

(2) The second sentence of such paragraph is amended by striking out "board" and inserting "Commission”.

(3) The third sentence of such paragraph is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

(1) (1) The first sentence of the eleventh paragraph (12 U.S.C. 329, relating to capital required for membership) is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

(2) The second sentence of such paragraph is amended by striking out "Board" and inserting "Commission".

(m) The twelfth paragraph (12 U.S.C. 329a, relating to compliance with certain provisions of law repealed since the enactment of such paragraph) is repealed.

(n) The second sentence of the thirteenth paragraph (12 U.S.C. 330, relating to laws to which State member banks are subject) is amended by inserting "and of the Federal Banking Commission" immediately after "regulations of the board".

(o) The second sentence of the fourteenth paragraph (12 U.S.C. 331, relating to false certification of checks) is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

(p) The last sentence of the sixteenth paragraph (12 U.S.C. 333, relating to admission to membership of mutual savings banks) is amended by inserting ", with

the regulations of the Federal Banking Commission," immediately before "and with the conditions of membership".

(q) (1) The first sentence of the seventeenth paragraph (12 U.S.C. 334, first paragraph relating to reports of affiliates) is amended (A) by striking out "Reserve bank" and inserting "Banking Commission" in lieu thereof, and (B) by striking out "of its district and to the Board of Governors of the Federal Reserve System".

(2) The second, third, and fourth sentences of such paragraph are amended by striking out "Board of Governors of the Federal Reserve System" each time it appears and inserting "Commission" in lieu thereof. The fourth sentence is further amended by striking out "Board" and inserting "Commission". (3) Such paragraph is further amended by adding at the end thereof the following new sentence: "Under the same conditions as are set forth in the sixth paragraph of this section for the acceptance by the Commission of a report of condition made to a State agency, the Commission may, in its discretion, accept a certified copy of a report of condition of an affiliate made to a State agency in lieu of any report of condition otherwise required by this paragraph."

(r) (1) The first sentence of the eighteenth paragraph (12 U.S.C. 334, second paragraph, relating to additional reports of affiliates) is amended by striking out "its Federal reserve bank or the Board of Governors of the Federal Reserve System" and inserting "the Federal Banking Commission".

(2) The second sentence of such paragraph is amended (A) by striking out "Federal reserve bank and the Board of Governors of the Federal Reserve System" and inserting "Commission", and (B) by striking out "Board of Governors of the Federal Reserve System" and inserting "Commission".

(s) The first sentence of the nineteenth paragraph (12 U.S.C. 334, third paragraph, relating to failure to obtain reports of affiliates) is amended (A) by striking out", by direction of the Board of Governors of the Federal Reserve System," and (B) by striking out "Federal reserve bank of the district in which such member bank is located" and inserting "Commission for the use of the Federal Deposit Insurance Corporation".

(t) The twenty-second paragraph (12 U.S.C. 337, relating to holding company affiliates) is amended by striking out "Board of Governors of the Federal Reserve System" each time it appears therein, and inserting in lieu thereof "Federal Banking Commission" the first time, and "Commission" the remaining times.

(u) (1) The first sentence of the twenty-third paragraph (12 U.S.C. 338, relating to examinations of affiliates) is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

(2) The second sentence of such paragraph is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Commission."

(3) The third sentence of such paragraph is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Commission". SEC. 205. (a) Subsection (a) of section 11 of the Federal Reserve Act (12 U.S.C. 248 (a), relating to examinations and reports) is amended (A) by striking out "and of each member bank" and (B) by inserting "of Federal reserve banks and member banks" immediately after "and to require".

(b) Subsection (d) of such section (12 U.S.C. 248 (d), relating to issue and retirement of Federal reserve notes) is amended (A) by striking out "Comptroller of the Currency" and inserting "Secretary of the Treasury” and (B) by striking out "Comptroller" and inserting "Secretary".

SEC. 206. (a) The second proviso of the first paragraph (12 U.S.C. 342, relating to receipt of deposits and collections) of section 13 (relating to powers of Federal reserve banks) of the Federal Reserve Act is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

(b) The eleventh paragraph (relating to national banks as insurance agents or real estate loan brokers) of such section is amended by striking out "Comptroller of the Currency" and inserting "Federal Banking Commission".

SEC. 207. (a) The last sentence of the third paragraph (12 U.S.C. 413) of section 16 (relating to note issues) of the Federal Reserve Act is amended by striking out "Comptroller of the Currency" and inserting "Secretary of the Treasury".

(b) The ninth paragraph (12 U.S.C. 418, relating to engraving of plates and form and denominations of notes) of such section is amended (A) by striking out "the Comptroller of the Currency shall, under the direction of" and (B) by striking out the comma immediately after "Secretary of the Treasury” and inserting "shall".

(c) The tenth paragraph (12 U.S.C. 419, relating to custody of unissued notes) of such section is amended by striking out "Comptroller of the Currency" and inserting "Secretary of the Treasury".

(d) The eleventh paragraph (12 U.S.C. 420, relating to custody of plates and dies, and allocation of certain expenses) of such section is amended by striking out "Comptroller of the Currency" and inserting "Secretary of the Treasury".

(e) The fourteenth paragraph (12 U.S.C. 360, relating to the receipt of checks and drafts at par) is amended (A) by striking out, in the third sentence, "the charges to be collected by the member banks from its patrons whose checks are cleared through the Federal Reserve bank and", and (B) by adding at the end thereof the following new sentence: "The Federal Banking Commission shall, by rule, fix the charges to be collected by the member banks from their patrons whose checks are cleared through the Federal Reserve bank."

SEC. 208. (a) The first paragraph (12 U.S.C. 461, authorizing the Board of Governors to define certain terms) of section 19 of the Federal Reserve Act (relating to bank reserves) is amended by adding at the end thereof the following new sentence: "Any definition promulgated by the Board pursuant to this section shall be identical to the definition of the term defined therein as set forth in the regulations of the Federal Banking Commission, unless the Board expressly finds that a different definition of such term is required for the purposes of regulating the supply of money and credit than is required for the purposes of bank supervision and deposit insurance."

(b) The twelfth paragraph (12 U.S.C. 466, relating to admission to membership of certain banks) of such section is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

SEC. 209. (a) Subsection (d) (12 U.S.C. 375, relating to purchases by member banks from their directors) of section 22 (relating to certain offenses) of the Federal Reserve Act is amended by striking out "Board of Governors of the Federal Reserve System" both times it appears and inserting "Federal Banking Commission" the first time, and "Commission" the second time.

(b) The fifth sentence of subsection (g) (12 U.S.C. 375a, relating to loans to executive officers by member banks) of such section is amended by striking out "Board of Governors of the Federal Reserve System" and inserting "Federal Banking Commission".

SEC. 210. The second sentence of the first paragraph (12 U.S.C. 371, relating to real estate loans by national banks) of section 24 of the Federal Reserve Act is amended by striking out "Comptroller of the Currency" and inserting "Federal Banking Commission".

SEC. 211. Section 24A (12 U.S.C. 371d, relating to investments in bank premises) of the Federal Reserve Act is amended by striking out "Hereafter no national bank, without the approval of the Comptroller of the Currency, and no State member bank, without approval of the Board of Governors of the Federal Reserve System, shall" and inserting "Neither a national bank nor a State member bank, without the approval of the Federal Banking Commission, may". SEC. 212. (a) Section 25 of the Federal Reserve Act (12 U.S.C. 601-604a, relating to foreign branches) is amended by striking out "Board of Governors of the Federal Reserve System" each time it appears, and inserting "Federal Banking Commission" the first time, and "Commission" each remaining time. (b) The sixth paragraph (12 U.S.C. 602) of such section is amended by striking out "Comptroller of the Currency" and inserting "Commissioner".

(c) The seventh paragraph (12 U.S.C. 603) of such section is amended (A) by striking out "said board" the first time it appears and inserting "Commission" and (B) by striking out "said board" the second time it appears and inserting "the Commission".

(d) The ninth paragraph (12 U.S.C. 604a) of such section is amended by striking out "Board" and inserting "Commission".

(e) The Board of Governors of the Federal Reserve System shall assign to the Federal Banking Commission all of its rights under any agreement executed pursuant to section 25 of the Federal Reserve Act prior to the effective date of this title.