,,ii #aahth ,,congress #ast ,session ,s4 #bdig ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bf1 #bjbc ,mr4 ,vance introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,federal ,deposit ,insurance ,act to convert certain insured ,state banks into national banks4 #a4 ,short title ,this ,act may be cited as the ,bank ,failure ,prevention ,act4 #b4 ,conversion of insured ,state bank with total consolidated assets equal to or greater than #ajj1jjj1jjj1jjj into a national bank 7a7 ,in general ,section #bd of ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;a7 is amended by adding at the end the following3 7k7 ,automatic conversion to a national banking association 7#a7 ,definitions ,in this subsection3 7,a7 ,average total consolidated assets ,the term average total consolidated assets means the average of total consolidated assets for the four most recent calendar quarters or1 if the insured ,state bank has not reported total consolidated assets for each of the four most recent calendar quarters1 the total consolidated assets for the most recent calendar quarter or average of the most recent calendar quarters1 as applicable4 7,b7 ,covered insured state bank ,the term 8covered insured ,state bank0 means an insured ,state bank with average total consolidated assets equal to or greater than #ajj1jjj1jjj1jjj4 7#b7 ,conversion 7,a7 ,in general ,by operation of law1 a covered insured ,state bank shall convert to and become a national banking association on the date that is #ahj days after the end of the quarter in which the insured ,state bank became a covered insured ,state bank4 ,the ,comptroller of the ,currency shall issue a certificate of organization to the association on such date4 ,the requirements and restrictions on the conversion of a ,state ,bank or ,savings ,association contained in ,section #eaed of the ,revised ,statutes of the ,united ,states 7#ab ,u4,s4,c4 #ce7 do not apply to conversions under this section4 ,a covered insured ,state bank may continue to operate any branch or agency that the covered insured ,state bank operated on the date on which the ,comptroller of the ,currency issues the certificate of organization4 ,the ,comptroller of the ,currency may1 in the ,comptroller's discretion and subject to such terms and conditions as the ,comptroller may prescribe1 permit such covered insured ,state bank to retain and carry at a value determined by the ,comptroller such of the assets of such converting bank as do not conform to the legal requirements relative to assets acquired and held by national banking associations4 ,the ,comptroller of the ,currency may extend or accelerate any compliance date of this section if the ,comptroller determines that such extension or acceleration is appropriate4 ,in determining whether an extension or acceleration is appropriate1 the ,comptroller will consider the effect of the modification on financial stability1 the period of time for which the modification would be necessary to facilitate compliance with this section1 and the actions the covered insured ,state bank is taking to come into compliance with this section4 7,b7 ,rights and duties ,when the covered insured ,state bank has received its certificate of organization from the ,comptroller of the ,currency1 such bank shall be considered a national bank and supervised and regulated as such1 and the bank and all its stockholders1 officers1 and employees shall have the same powers and privileges and shall be subject to the same duties1 liabilities1 and regulations1 in all respects1 as shall have been prescribed by the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bba et seq47 and the ,national ,banking ,act for associations originally organized as national banking associations4 7,c7 ,notice ,a covered insured ,state bank shall submit a notice to the ,comptroller of the ,currency and the appropriate ,federal banking agency within #fj days of becoming a covered insured ,state bank4 ,the notice shall contain-- 7i7 the date on which the insured ,state bank became a covered insured ,state bank2 7ii7 the date on which the covered insured ,state bank will convert to a national banking association2 and 7iii7 the name to be assumed by such association following conversion1 which shall include the word national4 7#c7 ,transitions 7,a7 ,no transition for certain insured state banks ,an insured ,state bank that would be a covered insured ,state bank immediately prior to ,december #ca1 #bjbc1 shall be considered to have become a covered insured ,state bank on ,january #a1 #bjbd4 7,b7 ,orderly transition ,following receipt of the notice under subsection 7k77#b77;,c71 the appropriate ,federal banking agency shall provide to the ,comptroller of the ,currency the covered insured ,state bank's reports of condition and other relevant financial and supervisory information1 as requested by the ,comptroller4 7#d7 ,rulemaking ,the ,comptroller of the ,currency1 after consulting with the ,board of ,governors of the ,federal ,reserve ,system and the ,federal ,deposit ,insurance ,corporation1 shall issue rules to carry out this section that-- 7,a7 establish streamlined standards and procedures that clearly identify required documentation and timelines for compliance with applicable law2 and 7,b7 require a covered insured ,state bank automatically converting under subsection 7k77#b7 to identify activities and investments1 whether conducted by the covered insured ,state bank or its affiliates1 that-- 7i7 do not conform to the requirements for activities and investments of a national bank2 and 7ii7 are held by the covered insured ,state bank or its affiliates on the date on which the covered ,state bank submits the notice pursuant to subsection 7k77#b77;,a72 7,c7 establish-- 7i7 a transition process for bringing the activities and investments described in paragraph 7,b7 into conformance with the requirements for a national bank under applicable law2 and 7ii7 procedures for allowing the covered insured ,state bank to submit to the ,comptroller of the ,currency an application to continue to hold activities and investments described in paragraph 7,b7 after conversion1 which may be approved or denied by the ,comptroller in his discretion2 and 7,d7 the ,comptroller of the ,currency determines necessary in the interests of safety and soundness4 4 7b7 ,effective date ,the amendments made by this section shall take effect on ,december #ca1 #bjbc4