,i  #aae? ,,congress  #b;d ,session  ,h4
 ,r4 #ejei  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #ae1         
#bjah,mr4 ,ro?fus 7= himself & ,mrs4    
,beatty7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d ! ,home   
,own]s' ,loan ,act ) respect to !       
regi/ration & sup]vision ( insurance    
sav+s & loan hold+ companies1 & = o!r   
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,/ate ,insurance           
,regulation ,pres]vation ,act4  #b4     
,sup]vision ( insurance sav+s & loan    
hold+ companies  7a7 ,def9itions        
,section #aj7;a77#a7 ( ! ,home ,own]s'  
,loan ,act 7#ab ,u4,s4,c4               
#adfg;a7a77#a77 is am5d$ by add+ at !   
end ! foll[+3  7,k7 ,insurance sav+s &  
loan hold+ company ,! t]m insurance     
sav+s & loan hold+ company means-- 7i7 a
 top-ti] sav+s & loan hold+ company t is
 an insurance und]writ+ company2  7ii7 a
 sav+s & loan hold+ company t held #ge  
p]c5t or m ( its total consolidat$      

assets 9 an insurance und]writ+ company 
or insurance und]writ+ companies1 o!r   
?an assets associat$ ) insurance = cr$it
 risk1 dur+ ! #d mo/ rec5t consecutive  
qu>t]s1 z calculat$ 9 accordance )      
g5]ally accept$ acc\nt+ pr9ciples or !  
,/atutory ,acc\nt+ ,pr9ciples ( !       
,national ,association ( ,insurance     
,commission]s1 z applicable2 or  7iii7 a
 top-ti] sav+s & loan hold+ company t-- 
7,i7 0 regi/]$ z a sav+s & loan hold+   
company be=e ,july #ba1 #bjaj2 &  7,,ii7
 is a ,new ,york n-=-pr(it corporation  
=m$ = ! purpose ( hold+ ! /ock ( a ,new 
,york insurance company4  7,l7          
,insurance und]writ+ company ,! t]m     
insurance und]writ+ company means an    
entity t is-- 7i7 engag$ 9 ! bus9ess (  
insurance2  7ii7 subject to regulation  
by a ,/ate insurance regulator2 &  7iii7
 cov]$ by a ,/ate law t is design$ to   
specifically deal ) ! rehabilitation1   
liquidation1 or insolv5cy ( an insurance
 company4  7,m7 ,mat]ial subsidi>y ,!   
t]m mat]ial subsidi>y-- 7i7 means a     

subsidi>y t has--  7,i7 (f-balance %eet 
activities n less ?an #e1jjj1jjj1jjj2   
7,,ii7 equity capital n less ?an #e     
p]c5t ( ! consolidat$ equity capital ( !
 top-ti] hold+ company2 or  7,,iii7     
consolidat$ op]at+ rev5ue n less ?an #e 
p]c5t ( ! consolidat$ op]at+ rev5ue ( ! 
top-ti] hold+ company2 &  7ii7 does n   
include a subsidi>y t is-- 7,i7 a       
functionally regulat$ subsidi>y2  7,,ii7
 a nonop]at+ %ell hold+ company2 or     
7,,iii7 prim>ily engag$ 9--  7aa7 s]vic+
 activities = ! hold+ company or its    
affiliates1 includ+ ! activities        
describ$ 9 section #bbe4bb7;b77#b7 (    
title #ab1 ,code ( ,f$]al ,regulations2 
or  7bb7 int]nal f9ancial activities1 z 
t t]m is def9$ 9 section #aj;,a7a74  4  
7b7 ,regi/ration & exam9ation ,section  
#aj7;b7 ( ! ,home ,own]s' ,loan ,act    
7#ab ,u4,s4,c4 #adfg;a7b77 is am5d$--   
7#a7 9 p>agraph 7#a71 by ins]t+ 1 & :i* 
%all1 if applicable1 provide = a sav+s &
 loan hold+ company to regi/] z an      
insurance sav+s & loan hold+ company    

be=e ! p]iod at ! end ( ! fir/ s5t5ce2  
7#b7 9 p>agraph 7#b7-- 7,a7 9           
subp>agraph 7,a71 by /rik+ ,ea* sav+s & 
loan hold+ company & ins]t+ ,subject to 
subp>agraph 7,d71 ea* sav+s & loan hold+
 company2  7,b7 9 subp>agraph 7,c7-- 7i7
 by /rik+ ,^u & ins]t+ ! foll[+3  7i7 ,9
 g5]al ,^u  2 &  7ii7 by add+ at ! end !
 foll[+3  7ii7 ,insurance sav+s & loan  
companies ,9 ! case ( an insurance sav+s
 & loan hold+ company-- 7,i7 clause 7i7 
%all n apply2 &  7,,ii7 ! ,bo>d %all    
submit a reque/ = any in=mation describ$
 9 clauses 7i7 ?r\gh 7iii7 ( subp>agraph
 7,b7 to ! appropriate ,f$]al or ,/ate  
regulatory ag5cies4  2 &  7,c7 by add+  
at ! end ! foll[+3  7,d7 ,insurance     
sav+s & loan hold+ companies ,an        
insurance sav+s & loan hold+ company may
 be requir$ only to file reports relat$ 
to--  7i7 ! organizational /ructure ( ! 
company & any *anges 9 t /ructure2  7ii7
 transactions betwe5 ! company & its    
affiliates2  7iii7 balance %eet & income
 /atem5ts ( a mat]ial subsidi>y ( !     

company2 &  7iv7 ! capital hold+s ( !   
company 9 relation to applicable m9imum 
capital /&>ds4  2  7#c7 9 p>agraph 7#c71
 by ins]t+ 1 o!r ?an an insurance sav+s 
& loan hold+ company1 aft] company2 &   
7#d7 9 p>agraph 7#d7--  7,a7 9          
subp>agraph 7,a71 by ins]t+ &           
subp>agraph 7,d7 aft] #bjaj2 &  7,b7 by 
add+ at ! end ! foll[+3  7,d7 ,insurance
 sav+s & loan hold+ companies  7i7      
,tailor$ exam9ations & sup]vision ,bo>d 
exam9ations (1 & sup]visory guidance    
applicable to1 an insurance sav+s & loan
 hold+ company %all be bas$ ^u a        
sup]visory framework t is--  7,i7       
tailor$ to ! risks & activities ( !     
bus9ess ( insurance2 &  7,,ii7 develop$ 
9 consultation ) ,/ate insurance        
au?orities to ensure t su* framework    
does n duplicate or conflict ) ,/ate    
insurance requirem5ts4  7ii7 ,exemption 
= companies t meet applicable capital   
/&>ds ,subject to clause 7iii71 ! ,bo>d 
%all nei!r exam9e nor apply sup]visory  
guidance to an insurance sav+s & loan   

hold+ company1 or any subsidi>y ( an    
insurance sav+s & loan hold+ company    
7o!r ?an a mat]ial subsidi>y71 if su*   
company--  7,i7 meets or exce$s         
applicable ,/ate insurance capital      
/&>ds2 &  7,,ii7 meets or exce$s any    
m9imum capital /&>ds = an insurance     
sav+s & loan hold+ company promulgat$ by
 ! ,bo>d "u section #aga ( ! ,f9ancial  
,/ability ,act ( #bjaj 7#ab ,u4,s4,c4   
#ecga74  7iii7 ,corrective action plan  
7,i7 ,9 g5]al ,if1 bas$ ^u a capital    
report submitt$ pursuant to p>agraph    
7#b77;,d77iv71 an insurance sav+s & loan
 hold+ company is n 9 compliance ) any  
applicable m9imum capital /&>ds1 ! ,bo>d
 %all provide a notice ( noncompliance  
to ! company & require ! company to     
submit1 )9 #de days ( ! receipt ( su*   
notice1 a plan to re/ore ! capital ( !  
company to a level t meets ! applicable 
m9imum /&>ds n lat] ?an ! lat] (--  7aa7
 #a ye> aft] ! date on :i* ! plan is    
submitt$2 or  7bb7 a date det]m9$ by !  
,bo>d4  7,,ii7 ,failure to submit plan  

,if a company fails to submit a requir$ 
capital re/oration plan1 or fails to    
re/ore capital to applicable m9imum     
/&>ds )9 ! "t p]iod specifi$ 9 ! plan1 !
 ,bo>d1 foll[+ notice & an opportunity =
 a he>+1 may prohibit ! application (   
clause 7ii7 to ! company until ! lat]   
(--  7aa7 ! date on :i* ! company has   
met applicable m9imum capital /&>ds = #b
 cal5d> ye>s2 or  7bb7 a date det]m9$ by
 ! ,bo>d4  4  7c7 ,adm9i/ration &       
en=cem5t ,section #aj7;g7 ( ! ,home     
,own]s' ,loan ,act 7#ab ,u4,s4,c4       
#adfg;a7g77 is am5d$-- 7#a7 9 p>agraph  
7#a71 by ins]t+ ,9 issu+ any regulation1
 ord]1 or sup]visory guidance applicable
 to an insurance sav+s & loan hold+     
company1 includ+ a regulation1 ord]1 or 
guidance relat$ to capital1 /ress te/+1 
& cyb]security1 ! ,bo>d %all tailor su* 
regulation1 ord]1 or guidance to ! risks
 & activities ( ! bus9ess ( insurance & 
%all consult ) ,/ate insurance          
au?orities to ensure t ! regulation1    
ord]1 or guidance does n duplicate or   

conflict ) ,/ate insurance requirem5ts4 
aft] ! p]iod at ! end2 &  7#b7 9        
p>agraph 7#b71 by ins]t+ ,9 ! case ( an 
insurance sav+s & loan hold+ company1 ! 
au?ority ( ! ,bo>d to conduct           
inve/igations %all be limit$ to !       
mat]ial subsidi>ies ( ! insurance sav+s 
& loan hold+ company4 aft] ! p]iod at ! 
end4  7d7 ,int]m$iate hold+ companies   
,section #aj;,a7d7 ( ! ,home ,own]s'    
,loan ,act 7#ab ,u4,s4,c4 #adfg;b7d77 is
 am5d$ by add+ at ! end ! foll[+3  7#c7 
,insurance sav+s & loan hold+ companies 
,if ! ,bo>d requires a gr&fa!r$ unit>y  
sav+s & loan hold+ company t is an      
insurance sav+s & loan hold+ company to 
e/abli% an int]m$i>y hold+ company to   
engage 9 f9ancial activities1 !         
int]m$i>y hold+ company %all be treat$ z
 an insurance sav+s & loan hold+ company
 = purposes ( sup]vision & regulation by
 ! ,bo>d4  4  7e7 ,em]g5cy sup]visory   
au?ority ,section #aj ( ! ,home ,own]s' 
,loan ,act 7#ab ,u4,s4,c4 #adfg;a7 is   
am5d$ by add+ ! foll[+ new subsection at

 ! end !re(3  7u7 ,em]g5cy sup]visory   
au?ority ,! ,bo>d1 by ord]1 may susp5d !
 application ( p>agraphs 7#b77;,c77ii71 
7#b77;,d71 & 7#d77;,d7 ( subsection 7c7 
& ! f9al s5t5ces ( p>agraphs 7#a7 & 7#b7
 ( subsection 7g7 to an insurance sav+s 
& loan hold+ company & apply subsection 
7b77#c7 to an insurance sav+s & loan    
hold+ company if ! ,bo>d1 aft]          
consultation ) ! ,/ate insurance        
au?ority = ! insurance sav+s & loan     
hold+ company1 reasonably det]m9es t !  
op]ations & activities ( ! insurance    
sav+s & loan hold+ company pose a s]i\s 
& imm95t risk to ! f9ancial safety &    
s\ndness or /ability ( ! insurance sav+s
 & loan hold+ company's subsidi>y sav+  
association4  4  #c4 ,assessm5ts & fees 
= insurance sav+s & loan hold+ companies
 ,section #aa ( ! ,f$]al ,res]ve ,act   
7#ab ,u4,s4,c4 #bdh7 is am5d$1 9 !      
second subsection 7s7 7relat+ to        
assessm5ts71 by add+ at ! end ! foll[+3 
7#c7 ,exclud$ assets ,) respect to an   
insurance sav+s & loan hold+ company1 z 

def9$ 9 section #aj ( ! ,home ,own]s'   
,loan ,act 7#ab ,u4,s4,c4 #adfg;a71 !   
total consolidat$ assets describ$ 9     
p>agraph 7#b77;,b7 %all n include any   
asset ( an insurance company4  4