,,ii  #aaeth ,,congress  #ast ,session  
,s4 #efg  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #h1 #bjag,ms4
 ,heitkamp introduced the following     
bill2 which was read twice and referred 
to the ,committee on ,banking1 ,housing1
 and ,urban ,affairs  ,a ,,bill  ,to    
amend the ,home ,owners' ,loan ,act to  
allow ,federal savings associations to  
elect to operate as national banks1 and 
for other purposes4  #a4 ,short title   
,this ,act may be cited as the ,federal 
,savings ,association ,charter          
,flexibility ,act of #bjag4  #b4 ,option
 for ,federal savings associations to   
operate as a covered savings association
 ,the ,home ,owners' ,loan ,act 7#ab    
,u4,s4,c4 #adfa et seq47 is amended by  
inserting after section #e the          
following3  #e;,a4 ,election to operate 
as a covered savings association  7a7   
,definition ,in this section1 the term  
covered savings association means a     
,federal savings association that makes 
an election approved under subsection   

7b74  7b7 ,election  7#a7 ,in general   
,upon issuance of the rules described in
 subsection 7f71 a ,federal savings     
association may elect to operate as a   
covered savings association by          
submitting a notice to the ,comptroller 
of such election4  7#b7 ,approval ,a    
,federal savings association shall be   
deemed to be approved to operate as a   
covered savings association on the date 
that is #fj days after the date on which
 the ,comptroller receives the notice   
under paragraph 7#a71 unless the        
,comptroller notifies the ,federal      
savings association otherwise4  7c7     
,rights and duties ,notwithstanding any 
other provision of law and except as    
otherwise provided in this section1 a   
covered savings association shall--     
7#a7 have the same rights and privileges
 as a national bank that has its main   
office situated in the same location as 
the home office of the covered savings  
association2 and  7#b7 be subject to the
 same duties1 restrictions1 penalties1  

liabilities1 conditions1 and limitations
 that would apply to such a national    
bank4  7d7 ,treatment of covered savings
 associations ,a covered savings        
association shall be treated as a       
,federal savings association for the    
purposes-- 7#a7 of governance of the    
covered savings association1 including  
incorporation1 bylaws1 boards of        
directors1 shareholders1 and            
distribution of dividends2  7#b7 of     
consolidation1 merger1 dissolution1     
conversion 7including conversion to a   
stock bank or to another charter71      
conservatorship1 and receivership2 and  
7#c7 determined by regulation of the    
,comptroller4  7e7 ,existing branches ,a
 covered savings association may        
continue to operate any branch or agency
 the covered savings association        
operated on the date on which an        
election under subsection 7b7 is        
approved4  7f7 ,rulemaking ,the         
,comptroller shall issue rules to carry 
out this section-- 7#a7 that establish  

streamlined standards and procedures    
that clearly identify required          
documentation or timelines for an       
election under subsection 7b72  7#b7    
that require a ,federal savings         
association that makes an election under
 subsection 7b7 to identify specific    
assets and subsidiaries--  7,a7 that do 
not conform to the requirements for     
assets and subsidiaries of a national   
bank2 and  7,b7 that are held by the    
,federal savings association on the date
 on which the ,federal savings          
association submits a notice of such    
election2  7#c7 that establish-- 7,a7 a 
transition process for bringing such    
assets and subsidiaries into conformance
 with the requirements for a national   
bank2 and  7,b7 procedures for allowing 
the ,federal savings association to     
provide a justification for             
grandfathering such assets and          
subsidiaries after electing to operate  
as a covered savings association2  7#d7 
that establish standards and procedures 

to allow a covered savings association  
to terminate an election under          
subsection 7b7 after an appropriate     
period of time or to make a subsequent  
election2  7#e7 that clarify            
requirements for the treatment of       
covered savings associations1 including 
the provisions of law that apply to     
covered savings associations2 and  7#f7 
as the ,comptroller deems necessary and 
in the interests of safety and          
soundness4  4