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after the proposed conversion in writing of any ongoing supervisory or investigative proceedings that the appro- priate Federal banking agency for the institution proposing to convert believes is likely to result, in the near term and absent the proposed conversion, in a cease and desist order (or other formal enforcement order) or memorandum of understanding with respect to a significant supervisory matter; and (B) provide the Federal banking agency that would be the appropriate Federal banking agency for the institu- tion after the proposed conversion access to all investigative and supervisory information relating to the proceedings described in subparagraph (A).

SEC. 613. DE NOVO BRANCHING INTO STATES.
(a) NATIONAL BANKS.—Section 5155(g)(1)(A) of the Revised Stat-
utes of the United States (12 U.S.C. 36(g)(1)(A)) is amended to
read as follows:
‘‘(A) the law of the State in which the branch is located,
or is to be located, would permit establishment of the
branch, if the national bank were a State bank chartered
by such State; and’’.
(b) STATE INSURED BANKS.—Section 18(d)(4)(A)(i) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(d)(4)(A)(i)) is amended to
read as follows:
‘‘(i) the law of the State in which the branch is
located, or is to be located, would permit establishment
of the branch, if the bank were a State bank chartered
by such State; and’’.

SEC. 614. LENDING LIMITS TO INSIDERS.
(a) EXTENSIONS OF CREDIT.—Section 22(h)(9)(D)(i) of the Fed-
eral Reserve Act (12 U.S.C. 375b(9)(D)(i)) is amended—
(1) by striking the period at the end and inserting ‘‘; or’’;
(2) by striking ‘‘a person’’ and inserting ‘‘the person’’;
(3) by striking ‘‘extends credit by making’’ and inserting
the following: ‘‘extends credit to a person by—
‘‘(I) making’’; and
(4) by adding at the end the following:
‘‘(II) having credit exposure to the person
arising from a derivative transaction (as defined
in section 5200(b) of the Revised Statutes of the
United States (12 U.S.C. 84(b))), repurchase agree-
ment, reverse repurchase agreement, securities
lending transaction, or securities borrowing trans-
action between the member bank and the person.’’.
12 USC 375b (b) EFFECTIVE DATE.—The amendments made by this section
note. shall take effect 1 year after the transfer date.

SEC. 615. LIMITATIONS ON PURCHASES OF ASSETS FROM INSIDERS.
(a) AMENDMENT TO THE FEDERAL DEPOSIT INSURANCE ACT.—
Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828)
is amended by adding at the end the following:
‘‘(z) GENERAL PROHIBITION ON SALE OF ASSETS.—
‘‘(1) IN GENERAL.—An insured depository institution may

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