4

1 Columbia (except a national bank), and includes any unincor2 porated bank the deposits of which are insured on the effec3 tive date of this amendment, and the word 'State' means any 4 State of the United States, the District of Columbia, any ter5 ritory or possession of the United States (including Guam, 6 American Samoa, and the Virgin Islands), the Northern Mar7 iana Islands, or Puerto Rico.".

8

SEC. 104. Section 3(d) of the Federal Deposit Insurance 9 Act (12 U.S.C. 1813(d)) is amended to read: "The term 'na10 tional member bank' means any national bank located in any 11 of the States of the United States, the District of Columbia, 12 any territory or possession of the United States (including 13 Guam, American Samoa, or the Virgin Islands), the North14 ern Mariana Islands, or Puerto Rico which is a member of 15 the Federal Reserve System.".

16

SEC. 105. Section 3(e) of the Federal Deposit Insurance

17 Act (12 U.S.C. 1813(e)) is amended to read:

18

"(1) The term 'national nonmember bank' means any 19 national bank located in any territory or possession of the 20 United States (including Guam, American Samoa, the Virgin 21 Islands), the Northern Mariana Islands, or Puerto Rico 22 which is not a member of the Federal Reserve System.". 23 SEC. 106. Section 3(g) of the Federal Deposit Insurance 24 Act (12 U.S.C. 1813(g)) is amended by striking out ": Pro25 vided, further, That such bank to be considered a savings

114

1 ing out "$100,000" and inserting in lieu thereof

2 "$250,000".

3

(b) The amendments made by subsection (a) are not ap

4 plicable to

19

(1) any claim arising out of the closing of a bank prior to the effective date of this section;

(2) any claim arising out of a default, as defined in section 401(d) of the National Housing Act (12 U.S.C. 1724(d)), where the appointment of a conservator, receiver, or other legal custodian as set forth in

that section became effective prior to the effective date of this section; or

(3) any claim arising out of the closing of a credit

union for liquidation on account of bankruptcy or insol

vency pursuant to section 207 of the Federal Credit

Union Act (12 U.S.C. 1787) prior to the effective date of this section.

INTERNATIONAL BANKING FACILITIES

SEC. 702. Paragraph (5) of section 3(1) of the Federal

20 Deposit Insurance Act (12 U.S.C. 1813()) is amended to

21 read as follows:

"(5) such other obligations of a bank as the Board

of Directors, after consultation with the Comptroller of

the Currency and the Board of Governors of the Fed

eral Reserve System, shall find and prescribe by regu

115

lation to be deposit liabilities by general usage, except

that the following shall not be a deposit for any of the purposes of this Act and shall not be included as part

of total deposits or of an insured deposit:

"(A) any obligation of a bank which is payable only at an office of the bank located outside of the States of the United States, the District of

Columbia, Puerto Rico, Guam, American Samoa, and the Virgin Islands; and

"(B) any international banking facility deposit, including an international banking facility time deposit as that term is from time to time defined by the Board of Governors of the Federal Reserve

System in its regulation D or any successor regulation thereto.".

DEFINITION OF CREDITOR

SEC. 703. Section 103(f) of the Truth in Lending Act

18 (15 U.S.C. 1602(f)) is amended to read as follows:

19

"(f) The term 'creditor' refers only to a person who both 20 (1) regularly extends, whether in connection with loans, sales 21 of property or services, or otherwise, consumer credit which 22 is payable by agreement in more than four installments or for 23 which the payment of a finance charge is or may be required, 24 and (2) is the person to whom the debt arising from the con25 sumer credit transaction is initially payable on the face of the

116

1 evidence of indebtedness or, if there is no such evidence of

2 indebtedness, by agreement. Notwithstanding the preceding

3 sentence, in the case of an open end credit plan involving a 4 credit card, the card issuer and any person who honors the 5 credit card and offers a discount which is a finance charge 6 are creditors. For the purpose of the requirements imposed 7 under chapter 4 and section 127(a)(5), 127(a)(6), 127(a)(7), 8 127(b)(1), 127(b)(2), 127(b)(3), 127(b)(8), and 127(b)(10) of 9 chapter 2 of this title, the term 'creditor' shall also include 10 card issuers whether or not the amount due is payable by 11 agreement in more than four installments or the payment of a 12 finance charge is or may be required, and the Board shall, by 13 regulation, apply these requirements to such card issuers, to 14 the extent appropriate, even though the requirements are by 15 their terms applicable only to creditors offering open end 16 credit plans.".

17

18

RELATION TO STATE LAWS

SEC. 704. (a) Subsections (b), (c), and (d) of section 111

19 of the Truth in Lending Act are redesignated as subsections 20 (c), (d), and (e), respectively.

21

(b) Section 111 of the Truth in Lending Act (15 U.S.C. 22 1610) is amended by inserting under the caption the follow

23 ing:

24

“(a)(1) Except as otherwise provided in this section, this

25 title supersedes any State law that is similar in purpose,

117

1 scope, requirement, or content to this title, to the extent of 2 the similarity. Similar laws include, but are not limited to, 3 laws relating to the disclosure or advertising of consumer 4 credit or lease terms, credit card and credit billing practices, 5 liability for consumer lease transactions, and the rescission of 6 consumer credit transactions.

7 "(2) Upon its own motion, or upon the request of any 8 creditor, lessor, State, or other interested party, the Board 9 shall determine whether a State law is similar to this title, 10 and thereby superseded, and shall publish notice of such de11 termination.

12 "(b) The provisions of this title shall not apply to any 13 extension of consumer credit or any consumer lease in any 14 State which makes a determination that such provisions shall 15 not apply with respect to extensions of consumer credit and 16 consumer leases subject to the laws of such State. Such de17 termination must

"(1) explicitly and by its terms indicate the provisions of this title that shall not apply in such State; "(2) occur on or after the date of enactment of this Act and prior to a date three years after such date:

"(3) provide for an effective date at least one year subsequent to such determination and permit creditors