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branches operated in the host State by out-of-State banks.".

(b) NATIONAL BANKING ASSOCIATIONS.-The Act entitled "An Act to provide for the consolidation of national banking associations", approved November 7, 1918 (12 U.S.C. 215 et seq.) is amended

(1) in the first sentence of subsection (a) of the first section, by inserting ", or in any State in which a bank involved in an interstate combination authorized by section 3(h) of the Bank Holding Company Act of 1956 is located," after “located in the same State";

(2) by inserting before the period at the end of subsection (d) of the first section ", except that the applicability of State law to an interstate combination undertaken in accordance with section 3(h) of the Bank Holding Company Act of 1956 is determined in accordance with the provisions of that section";

(3) by adding at the end of the first section the following new subsection:

"(h) The procedures, restrictions, and requirements set forth in this section apply to interstate combinations undertaken pursuant to and in accordance with section 3(h) of the Bank Holding Company Act of 1956 to the extent that the procedures, restrictions, and requirements of this section are not inconsistent with that section 3(h).";

(4) in the first sentence of section 2(a)

(A) by striking "under an agreement not inconsistent with this Act,"; and

(B) by inserting "or in any State in which a bank involved in an interstate combination authorized by section 3(h) of the Bank Holding Company Act of 1956 is located," after "located within the same State,";

(5) in the sixth sentence of section 2(d), by inserting before the period ", except that the applicability of State law to the transaction undertaken pursuant to section 3(h) of the Bank Holding Company Act of 1956 is determined in accordance with the provisions of that section";

(6) in section 2, by adding at the end the following new subsection:

"(h)(1) The procedures, restrictions, and requirements set forth in this section apply to interstate mergers undertaken pursuant to and in accordance with section 3(h) of the Bank Holding Company Act of 1956 to the extent that the procedures, restrictions, and requirements of this section are not inconsistent with that section 3(h).

“(2) Paragraph (1) shall apply to a State member bank involved in an interstate merger on the same terms and conditions and subject to the same procedures, restrictions, and requirements as are applicable to the consolidation of branches by a national banking association involved in an interstate merger."; and

(7) in paragraph (4) of section 3, by inserting "or within any State in which a bank involved in an interstate combination authorized by section 3(h) of the Bank Holding Company Act of 1956 is located," after "within the same State,".

SEC. 5. ACQUISITION OF INTERSTATE BRANCHES BY NATIONAL AND STATE BANKS.

(a) ACQUISITION OF INTERSTATE BRANCHES BY STATE BANKSSection 18(d) of the Federal Deposit Insurance Act (12 U.S.C 1828(d)) is amended by adding at the end the following new paragraphs:

"(4) INTERSTATE BRANCHING BY STATE BANKS.

“(A) IN GENERAL.-Beginning on the date of enactment of this paragraph, notwithstanding any other provision of law, a host State may, expressly by statute and not merely by implication, permit all out-of-State banks to acquire or establish a branch in the host State on a basis that does not have the effect of discriminating against out-of-State banks, out-of-State bank holding companies, or subsidiaries thereof. A branch established under this paragraph shall be operated in accordance with the procedures, re strictions, and requirements set forth in section 3(h) of the Bank Holding Company Act of 1956, and the provisions of that section shall apply to the branch as if the branch re sulted from a combination effected in accordance with paragraph (1) of that section 3(h).

"(B) FDIC APPROVAL.-A State nonmember bank may acquire, establish, and operate a branch under this paragraph only if the bank is adequately capitalized and adequately managed and with the prior approval of the Corporation.

“(5) DEFINITIONS. For purposes of this subsection

“(A) the term 'host State' means a State in which a bank acquires, establishes, or maintains a branch, other than the State in which the bank is located and engaged in the business of banking; and

"(B) a bank shall be deemed to be located'—

"(i) in the case of a State bank, in the State in which it was chartered; and

"(ii) in the case of a national bank, in the State in which its main office is located.".

(b) INTERSTATE BRANCHING BY NATIONAL BANKS.-Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended—

(1) by redesignating subsections (d) through (h) as subsections (e) through (i), respectively; and

(2) by inserting after subsection (c) the following new subsection:

“(d) INTERSTATE BRANCHING BY NATIONAL BANKS.—

"(1) APPROVALS AUTHORIZED.-Notwithstanding any other provision of law, the Comptroller of the Currency may approve an application under this subsection for a national bank that is adequately capitalized and adequately managed to acquire or establish a branch in a host State if the host State expressly permits, pursuant to section 18(d)(4) of the Federal Deposit Insurance Act, all out-of-State banks to establish such branches. Each such branch shall be operated in accordance with the procedures, restrictions, and requirements set forth in section 3(h) of the Bank Holding Company Act of 1956, and the provisions of that section shall apply to the branch as if the branch re

sulted from a combination effected in accordance with paragraph (1) of that section 3(h).

“(2) DEFINITIONS.-For purposes of this subsection

"(A) the term 'host State' means the State in which a national bank establishes a branch under paragraph (1); and "(B) the term 'adequately capitalized' has the same meaning as in section 38 of the Federal Deposit Insurance Act.".

SEC. 6. COMMUNITY REINVESTMENT ACT EVALUATION OF BANKS WITH INTERSTATE BRANCHES.

(a) IN GENERAL.-Section 807 of the Community Reinvestment Act of 1977 (12 U.S.C. 2906) is amended by adding at the end the following new subsections:

"(d) INSTITUTIONS WITH INTERSTATE BRANCHES.

"(1) STATE-BY-STATE EVALUATION.-In the case of a regulated financial institution that maintains domestic branches in 2 or more States, the appropriate Federal financial supervisory agency shall prepare

"(A) a written evaluation of the entire institution's record of performance under this title, as required by subsections (a), (b), and (c); and

"(B) for each State in which the institution maintains 1 or more domestic branches, a separate written evaluation of the institution's record of performance within such State under this title, as required by subsections (a), (b), and (c). “(2) MULTISTATE METROPOLITAN AREAS.-In the case of a regulated financial institution that maintains domestic branches in 2 or more States within a multistate metropolitan area, the appropriate Federal financial supervisory agency shall prepare a separate written evaluation of the institution's record of performance within such metropolitan area under this title, as required by subsections (a), (b), and (c). If the agency prepares a written evaluation pursuant to this paragraph, the scope of the written evaluation required under paragraph (1)(B) shall be adjusted accordingly.

"(3) CONTENT OF STATE LEVEL EVALUATION.-A written evaluation prepared pursuant to paragraph (1)(B) shall—

(A) present the information required by subparagraphs (A) and (B) of subsection (b)(1) separately for each metropolitan area in which the institution maintains 1 or more domestic branch offices and separately for the remainder of the nonmetropolitan area of the State if the institution maintains 1 or more domestic branch offices in such nonmetropolitan area; and

"(B) describe how the Federal financial supervisory agency has performed the examination of the institution, including a list of the individual branches examined. "(e) DEFINITIONS.-For purposes of this section the following definitions shall apply:

"(1) DOMESTIC BRANCH.-The term 'domestic branch' means any branch office or other facility of a regulated financial institution that accepts deposits, located in any State.

"(2) METROPOLITAN AREA.-The term 'metropolitan area' means any primary metropolitan statistical area, metropolitan

statistical area, or consolidated metropolitan statistical area, as defined by the Director of the Office of Management and Budget, with a population of 250,000 or more, and any other area identified by the appropriate Federal financial supervisory agency.

"(3) STATE.-The term 'State' has the same meaning as in section 3 of the Federal Deposit Insurance Act.".

(b) SEPARATE PRESENTATION.-Section 807(b)(1) of the Community Reinvestment Act of 1977 (12 U.S.C. 2906(b)(1)) is amended(1) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively;

(2) by striking "The public" and inserting the following:

"(A) CONTENTS OF WRITTEN EVALUATION.-The public"; and (3) by adding at the end the following new subparagraph: "(B) METROPOLITAN AREA DISTINCTIONS. The information required by clauses (i) and (ii) of subparagraph (A) shall be presented separately for each metropolitan area in which a regulated depository institution maintains one or more domestic branch offices.".

SEC. 7. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.

Section 5146 of the Revised Statutes (12 U.S.C. 72) is amended in the first sentence by striking “two-thirds” and inserting “a majority".

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The Committee on Agriculture, Nutrition, and Forestry reports
an original bill (S. 1970) to authorize the Secretary of Agriculture
to reorganize the Department of Agriculture, and for other pur-
poses, and having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.

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