And it will cut the number of bankers who must approve certain loans from five to three.
A second change is that payments of principal on certain loans will no longer be deductible from the companies' taxes.
Trace had pledged its stock in the two companies as collateral for certain loans.
It will also buy certain loans and other assets for $36.9 million.
However, some merchants charged interest rates as high as 10% on certain loans.
I was asked to take the budget down by $900,000 to $1.2 million, to buy out certain loans and we cut $980,000.
Another, more obscure, provision of the bill would affect certain loans that are secured by assets.
The proposal is based on the concept that certain loans and other assets of banks carry a higher risk than others.
Its demands that the government offer it protection against further declines in the value of certain already problematic loans after the sale also met resistance.
It also reported a $40 million chargeoff related to certain loans to lesser developed countries.