,,ii  #aacth ,,congress  #ast ,session  
,s4 #acdi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bd1     
#bjac ,mr4 ,moran 7for himself1 ,mr4    
,tester1 and ,mr4 ,kirk7 introduced the 
following bill2 which was read twice and
 referred to the ,committee on ,banking1
 ,housing1 and ,urban ,affairs  ,a      
,,bill  ,to enhance the ability of      
community financial institutions to     
foster economic growth and serve their  
communities1 boost small businesses1    
increase individual savings1 and for    
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,community     
,lending ,enhancement and ,regulatory   
,relief ,act of #bjac or the ,,clear    
,relief ,act of #bjac4  #b4 ,community  
bank exemption from annual management   
assessment of internal controls         
requirement of the ,sarbanes-,oxley ,act
 of #bjjb ,section #djd of the          
,sarbanes-,oxley ,act of #bjjb 7#ae     
,u4,s4,c4 #gbfb7 is amended by adding at
 the end the following3  7d7 ,community 

bank exemption  7#a7 ,definitions ,in   
this subsection--  7,a7 the term bank   
holding company has the same meaning as 
in section #b of the ,bank ,holding     
,company ,act of #aief 7#ab ,u4,s4,c4   
#ahda72  7,b7 the term insured          
depository institution has the same     
meaning as in section #c of the ,federal
 ,deposit ,insurance ,act 7#ab ,u4,s4,c4
 #ahac72 and  7,c7 the term savings and 
loan holding company has the same       
meaning as in section #aj of the ,home  
,owners' ,loan ,act 7#ab ,u4,s4,c4      
#adfg;a74  7#b7 ,in general ,this       
section and the rules prescribed under  
this section shall not apply in any     
fiscal year to any bank holding company1
 savings and loan holding company1 or   
insured depository institution which1 as
 of the end of the preceding fiscal     
year1 had total consolidated assets of  
#a1jjj1jjj1jjj or less4  7#c7           
,adjustment of amount ,the ,commission  
shall annually adjust the dollar amount 
in paragraph 7#a7 by an amount equal to 

the percentage increase1 for the most   
recent year1 in total assets held by all
 bank holding companies1 savings and    
loan holding companies1 and insured     
depository institutions1 as reported by 
the ,federal ,deposit ,insurance        
,corporation4  4  #c4 ,changes required 
to the ,small ,bank ,holding ,company   
,policy ,statement on ,assessment of    
,financial and ,managerial factors  7a7 
,definitions ,in this section--  7#a7   
the term bank holding company has the   
same meaning as in section #b of the    
,bank ,holding ,company ,act of #aief   
7#ab ,u4,s4,c4 #ahda72  7#b7 the term   
,board means the ,board of ,governors of
 the ,federal ,reserve ,system2  7#c7   
the term financial institution means--  
7,a7 an insured depository institution2 
7,b7 a bank holding company2  7,c7 a    
savings and loan holding company2 and   
7,d7 a foreign bank subject to the ,bank
 ,holding ,company ,act of #aief 7#ab   
,u4,s4,c4 #ahda et seq472  7#d7 the term
 insured depository institution has the 

same meaning as in section #c of the    
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahac72 and  7#e7 the term    
savings and loan holding company has the
 same meaning as in section #aj of the  
,home ,owners' ,loan ,act 7#ab ,u4,s4,c4
 #adfg;a74  7b7 ,federal ,reserve ,board
 ,the policy statement of the ,board in 
the ,small ,bank ,holding ,company      
,statement in part #bbe of the appendix 
to title #ab1 ,code of ,federal         
,regulations 7or any successor thereto71
 shall apply to each financial          
institution that--  7#a7 is otherwise   
subject to that policy statement2 and   
7#b7 has consolidated assets of less    
than #e1jjj1jjj1jjj4  #d4 ,escrow       
requirements relating to certain        
consumer credit transactions ,section   
#abi;,d7c7 of the ,truth in ,lending    
,act 7#ae ,u4,s4,c4 #afci;d7c77 is      
amended--  7#a7 by redesignating        
paragraphs 7#a71 7#b71 7#c71 and 7#d7 as
 subparagraphs 7,a71 7,b71 7,c71 and    
7,d71 respectively1 and moving the      

margins #b ems to the right2  7#b7 by   
striking ,the ,bureau and inserting the 
following3  7#a7 ,in general ,the       
,bureau  2 and  7#c7 by adding at the   
end the following3  7#b7 ,treatment of  
loans held by smaller institutions ,the 
,bureau shall1 by regulation1 exempt    
from the requirements of subsection 7a7 
any loan secured by a first lien on the 
principal dwelling of a consumer1 if    
such loan is held by an insured         
depository institution having assets of 
#aj1jjj1jjj1jjj or less4  4  #e4        
,minimum standards for residential      
mortgage loans ,section #abi;,c7b77#b7  
of the ,truth in ,lending ,act 7#ae     
,u4,s4,c4 #afci;c7b77#b77 is amended--  
7#a7 by adding at the end the following3
  7,f7 ,safe ,harbor ,in this section-- 
7i7 the term qualified mortgage includes
 any mortgage loan that is originated   
and retained in portfolio for a period  
of not less than #c years by a          
depository institution having less than 
#aj1jjj1jjj1jjj in total assets2 and    

7ii7 loans described in clause 7i7 shall
 be deemed to meet the requirements of  
subsection 7a74  2 and  7#b7 in         
subparagraph 7,e7--  7,a7 by striking   
,the ,bureau may1 by regulation1 and    
inserting ,the ,bureau shall1 by        
regulation12 and  7,b7 by striking      
clause 7iv7 and inserting the following3
  7iv7 that is extended by an insured   
depository institution that--  7,i7     
originates and retains the balloon loans
 in portfolio for a period of not less  
than #c years2 and  7,,ii7 together with
 its affiliates has less than           
#aj1jjj1jjj1jjj in total consolidated   
assets4  4