US (United States) Code. Title 12. Chapter 48: Financial institutions regulatory improvement

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and Banking

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-CITE-

12 USC CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY

IMPROVEMENT 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

.

-HEAD-

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-MISC1-

Sec.

4801. Incorporated definitions.

4802. Administrative consideration of burden with new regulations.

(a) Agency considerations.

(b) Adequate transition period for new regulations.

4803. Streamlining of regulatory requirements.

(a) Review of regulations; regulatory uniformity.

(b) Review of disclosures.

4804. Elimination of duplicative filings.

4805. Call report simplification.

(a) Modernization of call report filing and

disclosure system.

(b) Uniform reports and simplification of

instructions.

(c) Review of call report schedule.

4805a. Call report simplification.

(a) Modernization of call report filing and

disclosure system.

(b) Uniform reports and simplification of

instructions.

(c) Review of call report schedule.

(d) Definition.

4806. Regulatory appeals process, ombudsman, and alternative

dispute resolution.

(a) In general.

(b) Review process.

(c) Comment period.

(d) Agency ombudsman.

(e) Alternative dispute resolution pilot program.

(f) Definitions.

(g) Effect on other authority.

4807. Time limit on agency consideration of completed applications.

(a) In general.

(b) Waiver by applicant authorized.

4808. Revising regulatory requirements for transfers of all types

of assets with recourse.

(a) Review and revision of regulations.

(b) Regulations required.

(c) Coordination with section 1835(b) of this title.

(d) Definitions.

4809. ''Plain language'' requirement for Federal banking agency

rules.

(a) In general.

(b) Report.

(c) Definition.

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12 USC Sec. 4801 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4801. Incorporated definitions

-STATUTE-

Unless otherwise specifically provided in this chapter, for

purposes of this chapter -

(1) the terms ''appropriate Federal banking agency'', ''Federal

banking agencies'', ''insured depository institution'', and

''State bank supervisor'' have the same meanings as in section

1813 of this title; and

(2) the term ''insured credit union'' has the same meaning as

in section 1752 of this title.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 301, Sept. 23, 1994, 108 Stat.

2214.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in original ''this title''

meaning title III of Pub. L. 103-325, Sept. 23, 1994, 108 Stat.

2214, which enacted this chapter, sections 633 and 2606 of this

title, and section 5329 of Title 31, Money and Finance, amended

sections 1, 24, 27, 72, 93, 161, 248, 250, 324, 375a, 375b, 482,

1462a, 1464, 1468, 1813, 1815, 1817, 1819 to 1821, 1823, 1828,

1831f, 1831m, 1831p-1, 1831t, 1842, 1843, 1849, 1865, 1953, 2605,

3201, 3205, 3207, 3351, and 4313 of this title and sections 77c,

78c, 1667c, and 1681g of Title 15, Commerce and Trade, enacted

provisions set out as notes under this section, sections 24, 633,

1468, 1820, 1831p-1, and 1831t of this title, and sections 78c and

1667c of Title 15, and amended provisions set out as notes under

sections 1825 and 1828 of this title. For complete classification

of title III to the Code, see Tables.

-MISC2-

USE OF SUBORDINATED DEBT TO PROTECT FINANCIAL SYSTEM AND DEPOSIT

FUNDS FROM ''TOO BIG TO FAIL'' INSTITUTIONS

Pub. L. 106-102, title I, Sec. 108, Nov. 12, 1999, 113 Stat.

1361, provided that:

''(a) Study Required. - The Board of Governors of the Federal

Reserve System and the Secretary of the Treasury shall conduct a

study of -

''(1) the feasibility and appropriateness of establishing a

requirement that, with respect to large insured depository

institutions and depository institution holding companies the

failure of which could have serious adverse effects on economic

conditions or financial stability, such institutions and holding

companies maintain some portion of their capital in the form of

subordinated debt in order to bring market forces and market

discipline to bear on the operation of, and the assessment of the

viability of, such institutions and companies and reduce the risk

to economic conditions, financial stability, and any deposit

insurance fund;

''(2) if such requirement is feasible and appropriate, the

appropriate amount or percentage of capital that should be

subordinated debt consistent with such purposes; and

''(3) the manner in which any such requirement could be

incorporated into existing capital standards and other issues

relating to the transition to such a requirement.

''(b) Report. - Before the end of the 18-month period beginning

on the date of the enactment of this Act (Nov. 12, 1999), the Board

of Governors of the Federal Reserve System and the Secretary of the

Treasury shall submit a report to the Congress containing the

findings and conclusions of the Board and the Secretary in

connection with the study required under subsection (a), together

with such legislative and administrative proposals as the Board and

the Secretary may determine to be appropriate.

''(c) Definitions. - For purposes of subsection (a), the

following definitions shall apply:

''(1) Bank holding company. - The term 'bank holding company'

has the meaning given the term in section 2 of the Bank Holding

Company Act of 1956 (12 U.S.C. 1841).

''(2) Insured depository institution. - The term 'insured

depository institution' has the meaning given the term in section

3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).

''(3) Subordinated debt. - The term 'subordinated debt' means

unsecured debt that -

''(A) has an original weighted average maturity of not less

than 5 years;

''(B) is subordinated as to payment of principal and interest

to all other indebtedness of the bank, including deposits;

''(C) is not supported by any form of credit enhancement,

including a guarantee or standby letter of credit; and

''(D) is not held in whole or in part by any affiliate or

institution-affiliated party of the insured depository

institution or bank holding company.''

STUDY AND REPORT ON ADAPTING EXISTING LEGISLATIVE REQUIREMENTS TO

ONLINE BANKING AND LENDING

Pub. L. 106-102, title VII, Sec. 729, Nov. 12, 1999, 113 Stat.

1476, provided that:

''(a) Study Required. - The Federal banking agencies shall

conduct a study of banking regulations regarding the delivery of

financial services, including those regulations that may assume

that there will be person-to-person contact during the course of a

financial services transaction, and report their recommendations on

adapting those existing requirements to online banking and lending.

''(b) Report Required. - Before the end of the 2-year period

beginning on the date of the enactment of this Act (Nov. 12, 1999),

the Federal banking agencies shall submit a report to the Congress

on the findings and conclusions of the agencies with respect to the

study required under subsection (a), together with such

recommendations for legislative or regulatory action as the

agencies may determine to be appropriate.

''(c) Definition. - For purposes of this section, the term

'Federal banking agencies' means each Federal banking agency (as

defined in section 3(z) of the Federal Deposit Insurance Act (12

U.S.C. 1813(z))).''

TREASURY REPORT ON REDUCED TAXATION AND VIABILITY OF SMALL BANKS

Pub. L. 105-219, title IV, Sec. 403, Aug. 7, 1998, 112 Stat. 935,

provided that: ''The Secretary (of the Treasury) shall, not later

than 1 year after the date of enactment of this Act (Aug. 7, 1998),

submit a report to the Congress containing -

''(1) recommendations for such legislative and administrative

action as the Secretary deems appropriate, that would reduce and

simplify the tax burden for -

''(A) insured depository institutions having less than

$1,000,000,000 in assets; and

''(B) banks having total assets of not less than

$1,000,000,000 nor more than $10,000,000,000; and

''(2) any other recommendations that the Secretary deems

appropriate that would preserve the viability and growth of small

banking institutions in the United States.''

STUDY AND REPORT ON CAPITAL STANDARDS AND THEIR IMPACT ON ECONOMY

Section 328 of Pub. L. 103-325 provided that:

''(a) In General. - The Secretary of the Treasury, in

consultation with the Federal banking agencies, shall conduct a

study of the effect that the implementation of risk-based capital

standards for depository institutions, including the Basle

international capital standards, is having on -

''(1) the safety and soundness of insured depository

institutions;

''(2) the availability of credit, particularly to individuals

and small businesses; and

''(3) economic growth.

''(b) Report. -

''(1) In general. - Before the end of the 1-year period

beginning on the date of enactment of this Act (Sept. 23, 1994),

the Secretary of the Treasury shall submit a report to the

Congress on the findings and conclusions of the Secretary with

respect to the study conducted under subsection (a).

''(2) Recommendations. - The report shall contain any

recommendations with respect to capital standards that the

Secretary of the Treasury may determine to be appropriate.''

STUDY ON IMPACT OF PAYMENT OF INTEREST ON RESERVES

Section 329 of Pub. L. 103-325 provided that:

''(a) Federal Reserve Study. - Not later than 180 days after the

date of enactment of this Act (Sept. 23, 1994), the Board of

Governors of the Federal Reserve System, in consultation with the

Federal Deposit Insurance Corporation and the National Credit Union

Administration Board, shall conduct a study and report to the

Congress on -

''(1) the necessity, for monetary policy purposes, of

continuing to require insured depository institutions to maintain

sterile reserves;

''(2) the appropriateness of paying a market rate of interest

to insured depository institutions on sterile reserves or, in the

alternative, providing for payment of such interest into the

appropriate deposit insurance fund;

''(3) the monetary impact that the failure to pay interest on

sterile reserves has had on insured depository institutions,

including an estimate of the total dollar amount of interest and

the potential income lost by insured depository institutions; and

''(4) the impact that the failure to pay interest on sterile

reserves has had on the ability of the banking industry to

compete with nonbanking providers of financial services and with

foreign banks.

''(b) Budgetary Impact Study. - Not later than 180 days after the

date of enactment of this Act (Sept. 23, 1994), the Director of the

Office of Management and Budget and the Director of the

Congressional Budget Office, in consultation with the Committees on

the Budget of the Senate and the House of Representatives, shall

jointly conduct a study and report to the Congress on the budgetary

impact of -

''(1) paying a market rate of interest to insured depository

institutions on sterile reserves; and

''(2) paying such interest into the respective deposit

insurance funds.''

STUDY AND REPORT ON CONSUMER CREDIT SYSTEM

Section 330 of Pub. L. 103-325 provided that:

''(a) Study. - The Secretary of the Treasury, in consultation

with the Board of Governors of the Federal Reserve System, the

Administrator of the Small Business Administration, the Secretary

of Housing and Urban Development, and the other Federal banking

agencies, shall conduct a study of the process, including any

Federal laws, by which credit is made available for consumers and

small businesses in order to identify procedures, including any

Federal laws, which have the effect of -

''(1) reducing the amount of credit available for such purposes

or the number of persons eligible for such credit;

''(2) increasing the level of consumer inconvenience, cost, and

time delays in connection with the extension of consumer and

small business credit without corresponding benefit with respect

to the protection of consumers or small businesses or the safety

and soundness of insured depository institutions; and

''(3) increasing costs and burdens on insured depository

institutions, insured credit unions, and other lenders without

corresponding benefit with respect to the protection of consumers

or small business concerns or to the safety and soundness of

insured institutions.

''(b) Report. -

''(1) In general. - Not later than 1 year after the date of

enactment of this Act (Sept. 23, 1994), the Secretary of the

Treasury shall submit a report to the Congress on the findings

and conclusions of the Secretary with respect to the study

conducted under subsection (a).

''(2) Recommendations. - The report required by paragraph (1)

shall contain any recommendations for administrative action or

statutory changes that the Secretary of the Treasury may

determine to be appropriate.

''(c) Public Participation. - In conducting the study required by

subsection (a), comments shall be solicited from consumers,

representatives of consumers, insured depository institutions,

insured credit unions, other lenders, and other interested

parties.''

STUDY ON CHECK-RELATED FRAUD

Section 333 of Pub. L. 103-325 provided that:

''(a) Study. - The Board of Governors of the Federal Reserve

System (hereafter in this section referred to as the 'Board') shall

conduct a study on the advisability of extending the 1-business-day

period specified in section 603(b)(1) of the Expedited Funds

Availability Act (12 U.S.C. 4002(b)(1)), regarding availability of

funds deposited by local checks, to 2 business days.

''(b) Considerations. - In conducting the study under subsection

(a), the Board shall consider -

''(1) whether there is a pattern of significant increases in

check-related losses at depository institutions attributable to

the provisions of the Expedited Funds Availability Act (12 U.S.C.

4001 et seq.); and

''(2) whether extension of the time period referred to in

subsection (a) is necessary to diminish the volume of any such

check-related losses.

''(c) Report to the Congress. - Not later than 2 years after the

date of enactment of this Act (Sept. 23, 1994), the Board shall

submit a report to the Congress concerning the results of the study

conducted under this section and including any recommendations for

legislative action.''

FEASIBILITY STUDY OF DATA BANK

Section 341 of Pub. L. 103-325 provided that:

''(a) In General. - Not later than 18 months after the date of

enactment of this Act (Sept. 23, 1994), the Federal Financial

Institutions Examination Council shall -

''(1) study the feasibility, including the costs and benefits

to insured depository institutions, of establishing and

maintaining a data bank for reports submitted by any depository

institution to a Federal banking agency; and

''(2) report the results of such study to the Congress.

''(b) Additional Factors. - The study required under subsection

(a) shall consider the feasibility of -

''(1) permitting depository institutions to file reports

directly with the data bank; and

''(2) permitting Federal banking agencies, State bank

supervisors, and the public to obtain access to any appropriate

report on file with the data bank which such agency or supervisor

or the public is otherwise authorized to receive.''

TIMELY COMPLETION OF CRA REVIEW

Section 342 of Pub. L. 103-325 provided that: ''The comprehensive

regulatory review of the Community Reinvestment Act of 1977 (12

U.S.C. 2901 et seq.) that, as of the date of enactment of this Act

(Sept. 23, 1994), is being conducted by the Federal banking

agencies, shall be completed at the earliest practicable time.''

WAIVER OF RIGHT OF RESCISSION FOR CERTAIN REFINANCING TRANSACTIONS

Section 344 of Pub. L. 103-325 provided that: ''Not later than 6

months after the date of enactment of this Act (Sept. 23, 1994),

the Board of Governors of the Federal Reserve System, in

consultation with the consumer advisory council to such Board,

consumers, representatives of consumers, lenders, and other

interested parties, shall submit recommendations to the Congress

regarding whether a waiver or modification, at the option of a

consumer, of the right of rescission under section 125 of the Truth

in Lending Act (15 U.S.C. 1635) with respect to transactions which

constitute a refinancing or consolidation (with no new advances) of

the principal balance then due, and any accrued and unpaid finance

charges of an existing extension of credit by a different creditor

secured by an interest in the same property, would benefit

consumers.''

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12 USC Sec. 4802 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4802. Administrative consideration of burden with new

regulations

-STATUTE-

(a) Agency considerations

In determining the effective date and administrative compliance

requirements for new regulations that impose additional reporting,

disclosure, or other requirements on insured depository

institutions, each Federal banking agency shall consider,

consistent with the principles of safety and soundness and the

public interest -

(1) any administrative burdens that such regulations would

place on depository institutions, including small depository

institutions and customers of depository institutions; and

(2) the benefits of such regulations.

(b) Adequate transition period for new regulations

(1) In general

New regulations and amendments to regulations prescribed by a

Federal banking agency which impose additional reporting,

disclosures, or other new requirements on insured depository

institutions shall take effect on the first day of a calendar

quarter which begins on or after the date on which the

regulations are published in final form, unless -

(A) the agency determines, for good cause published with the

regulation, that the regulation should become effective before

such time;

(B) the regulation is issued by the Board of Governors of the

Federal Reserve System in connection with the implementation of

monetary policy; or

(C) the regulation is required to take effect on a date other

than the date determined under this paragraph pursuant to any

other Act of Congress.

(2) Early compliance

Any person who is subject to a regulation described in

paragraph (1) may comply with the regulation before the effective

date of the regulation.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 302, Sept. 23, 1994, 108 Stat.

2214.)

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12 USC Sec. 4803 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4803. Streamlining of regulatory requirements

-STATUTE-

(a) Review of regulations; regulatory uniformity

During the 2-year period beginning on September 23, 1994, each

Federal banking agency shall, consistent with the principles of

safety and soundness, statutory law and policy, and the public

interest -

(1) conduct a review of the regulations and written policies of

that agency to -

(A) streamline and modify those regulations and policies in

order to improve efficiency, reduce unnecessary costs, and

eliminate unwarranted constraints on credit availability;

(B) remove inconsistencies and outmoded and duplicative

requirements; and

(C) with respect to regulations prescribed pursuant to

section 1828(o) of this title, consider the impact that such

standards have on the availability of credit for small

business, residential, and agricultural purposes, and on low-

and moderate-income communities;

(2) review the extent to which existing regulations require

insured depository institutions and insured credit unions to

produce unnecessary internal written policies and eliminate such

requirements, where appropriate;

(3) work jointly with the other Federal banking agencies to

make uniform all regulations and guidelines implementing common

statutory or supervisory policies; and

(4) submit a joint report to the Congress at the end of such

2-year period detailing the progress of the agencies in carrying

out this subsection.

(b) Review of disclosures

The Board of Governors of the Federal Reserve System, in

consultation with the consumer advisory council to such Board,

consumers, representatives of consumers, lenders, and other

interested persons, shall -

(1) review the regulations and written policies of the Board

with respect to disclosures pursuant to the Truth in Lending Act

(15 U.S.C. 1601 et seq.) with regard to variable-rate mortgages

in order to simplify the disclosures, if necessary, and make the

disclosures more meaningful and comprehensible to consumers;

(2) implement any necessary regulatory changes, consistent with

applicable law; and

(3) not later than 2 years after completion of the review

required by paragraph (1), submit a report to the Congress on the

results of its actions taken in accordance with this subsection

and any recommended legislative actions.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 303, Sept. 23, 1994, 108 Stat.

2215; Pub. L. 104-208, div. A, title II, Sec. 2242, Sept. 30,

1996, 110 Stat. 3009-418.)

-REFTEXT-

REFERENCES IN TEXT

The Truth in Lending Act, referred to in subsec. (b)(1), is title

I of Pub. L. 90-321, May 29, 1968, 82 Stat. 146, as amended, which

is classified generally to subchapter I (Sec. 1601 et seq.) of

chapter 41 of Title 15, Commerce and Trade. For complete

classification of this Act to the Code, see Short Title note set

out under section 1601 of Title 15 and Tables.

-MISC2-

AMENDMENTS

1996 - Subsec. (a)(2) to (4). Pub. L. 104-208 added par. (2) and

redesignated former pars. (2) and (3) as (3) and (4), respectively.

UPDATE ON REVIEW OF REGULATIONS AND PAPERWORK REDUCTIONS

Pub. L. 105-219, title IV, Sec. 402, Aug. 7, 1998, 112 Stat. 935,

provided that: ''Not later than 1 year after the date of enactment

of this Act (Aug. 7, 1998), the Federal banking agencies (see 12

U.S.C. 1813(z)) shall submit a report to the Congress detailing

their progress in carrying out section 303(a) of the Riegle

Community Development and Regulatory Improvement Act of 1994 (12

U.S.C. 4803(a)), since their submission of the report dated

September 23, 1996, as required by section 303(a)(4) of that Act.''

-CITE-

12 USC Sec. 4804 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4804. Elimination of duplicative filings

-STATUTE-

The Federal banking agencies shall work jointly -

(1) to eliminate, to the extent practicable, duplicative or

otherwise unnecessary requests for information in connection with

applications or notices to the agencies; and

(2) to harmonize, to the extent practicable, any inconsistent

publication and public notice requirements.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 304, Sept. 23, 1994, 108 Stat.

2215.)

-CITE-

12 USC Sec. 4805 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4805. Call report simplification

-STATUTE-

(a) Modernization of call report filing and disclosure system

In order to reduce the administrative requirements pertaining to

bank reports of condition, savings association financial reports,

and bank holding company consolidated and parent-only financial

statements, and to improve the timeliness of such reports and

statements, the Federal banking agencies shall -

(1) work jointly to develop a system under which -

(A) insured depository institutions and their affiliates may

file such reports and statements electronically; and

(B) the Federal banking agencies may make such reports and

statements available to the public electronically; and

(2) not later than 1 year after September 23, 1994, report to

the Congress and make recommendations for legislation that would

enhance efficiency for filers and users of such reports and

statements.

(b) Uniform reports and simplification of instructions

The Federal banking agencies shall, consistent with the

principles of safety and soundness, work jointly -

(1) to adopt a single form for the filing of core information

required to be submitted under Federal law to all such agencies

in the reports and statements referred to in subsection (a) of

this section; and

(2) to simplify instructions accompanying such reports and

statements and to provide an index to the instructions that is

adequate to meet the needs of both filers and users.

(c) Review of call report schedule

Each Federal banking agency shall -

(1) review the information required by schedules supplementing

the core information referred to in subsection (b) of this

section; and

(2) eliminate requirements that are not warranted for reasons

of safety and soundness or other public purposes.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 307, Sept. 23, 1994, 108 Stat.

2217.)

-COD-

CODIFICATION

Provisions similar to this section are contained in section 4805a

of this title.

-CITE-

12 USC Sec. 4805a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4805a. Call report simplification

-STATUTE-

(a) Modernization of call report filing and disclosure system

In order to reduce the administrative requirements pertaining to

bank reports of condition, savings association financial reports,

and bank holding company consolidated and parent-only financial

statements, and to improve the timeliness of such reports and

statements, the Federal banking agencies shall -

(1) work jointly to develop a system under which -

(A) insured depository institutions and their affiliates may

file such reports and statements electronically; and

(B) the Federal banking agencies may make such reports and

statements available to the public electronically; and

(2) not later than 1 year after December 27, 2000, report to

the Congress and make recommendations for legislation that would

enhance efficiency for filers and users of such reports and

statements.

(b) Uniform reports and simplification of instructions

The Federal banking agencies shall, consistent with the

principles of safety and soundness, work jointly -

(1) to adopt a single form for the filing of core information

required to be submitted under Federal law to all such agencies

in the reports and statements referred to in subsection (a) of

this section; and

(2) to simplify instructions accompanying such reports and

statements and to provide an index to the instructions that is

adequate to meet the needs of both filers and users.

(c) Review of call report schedule

Each Federal banking agency shall -

(1) review the information required by schedules supplementing

the core information referred to in subsection (b) of this

section; and

(2) eliminate requirements that are not warranted for reasons

of safety and soundness or other public purposes.

(d) Definition

In this section, the term ''Federal banking agency'' has the same

meaning as in section 1813 of this title.

-SOURCE-

(Pub. L. 106-569, title XII, Sec. 1211, Dec. 27, 2000, 114 Stat.

3035.)

-COD-

CODIFICATION

Section was enacted as part of the Financial Regulatory Relief

and Economic Efficiency Act of 2000, and also as part of the

American Homeownership and Economic Opportunity Act of 2000, and

not as part of title III of Pub. L. 103-325 which comprises this

chapter.

Provisions similar to this section are contained in section 4805

of this title.

-CITE-

12 USC Sec. 4806 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4806. Regulatory appeals process, ombudsman, and alternative

dispute resolution

-STATUTE-

(a) In general

Not later than 180 days after September 23, 1994, each

appropriate Federal banking agency and the National Credit Union

Administration Board shall establish an independent intra-agency

appellate process. The process shall be available to review

material supervisory determinations made at insured depository

institutions or at insured credit unions that the agency

supervises.

(b) Review process

In establishing the independent appellate process under

subsection (a) of this section, each agency shall ensure that -

(1) any appeal of a material supervisory determination by an

insured depository institution or insured credit union is heard

and decided expeditiously; and

(2) appropriate safeguards exist for protecting the appellant

from retaliation by agency examiners.

(c) Comment period

Not later than 90 days after September 23, 1994, each appropriate

Federal banking agency and the National Credit Union Administration

Board shall provide public notice and opportunity for comment on

proposed guidelines for the establishment of an appellate process

under this section.

(d) Agency ombudsman

(1) Establishment required

Not later than 180 days after September 23, 1994, each Federal

banking agency and the National Credit Union Administration Board

shall appoint an ombudsman.

(2) Duties of ombudsman

The ombudsman appointed in accordance with paragraph (1) for

any agency shall -

(A) act as a liaison between the agency and any affected

person with respect to any problem such party may have in

dealing with the agency resulting from the regulatory

activities of the agency; and

(B) assure that safeguards exist to encourage complainants to

come forward and preserve confidentiality.

(e) Alternative dispute resolution pilot program

(1) In general

Not later than 18 months after September 23, 1994, each Federal

banking agency and the National Credit Union Administration Board

shall develop and implement a pilot program for using alternative

means of dispute resolution of issues in controversy (hereafter

in this section referred to as the ''alternative dispute

resolution program'') that is consistent with the requirements of

subchapter IV of chapter 5 of title 5 if the parties to the

dispute, including the agency, agree to such proceeding.

(2) Standards

An alternative dispute resolution pilot program developed under

paragraph (1) shall -

(A) be fair to all interested parties to a dispute;

(B) resolve disputes expeditiously; and

(C) be less costly than traditional means of dispute

resolution, including litigation.

(3) Independent evaluation

Not later than 18 months after the date on which a pilot

program is implemented under paragraph (1), the Administrative

Conference of the United States shall submit to the Congress a

report containing -

(A) an evaluation of that pilot program;

(B) the extent to which the pilot programs meet the standards

established under paragraph (2);

(C) the extent to which parties to disputes were offered

alternative means of dispute resolution and the frequency with

which the parties, including the agencies, accepted or declined

to use such means; and

(D) any recommendations of the Conference to improve the

alternative dispute resolution procedures of the Federal

banking agencies and the National Credit Union Administration

Board.

(4) Implementation of program

At any time after completion of the evaluation under paragraph

(3)(A), any Federal banking agency and the National Credit Union

Administration Board may implement an alternative dispute

resolution program throughout the agency, taking into account the

results of that evaluation.

(5) Coordination with existing agency ADR programs

(A) Evaluation required

If any Federal banking agency or the National Credit Union

Administration maintains an alternative dispute resolution

program as of September 23, 1994, under any other provision of

law, the Administrative Conference of the United States shall

include such program in the evaluation conducted under

paragraph (3)(A).

(B) Multiple ADR programs

No provision of this section shall be construed as precluding

any Federal banking agency or the National Credit Union

Administration Board from establishing more than 1 alternative

means of dispute resolution.

(f) Definitions

For purposes of this section, the following definitions shall

apply:

(1) Material supervisory determinations

The term ''material supervisory determinations'' -

(A) includes determinations relating to -

(i) examination ratings;

(ii) the adequacy of loan loss reserve provisions; and

(iii) loan classifications on loans that are significant to

an institution; and

(B) does not include a determination by a Federal banking

agency or the National Credit Union Administration Board to

appoint a conservator or receiver for an insured depository

institution or a liquidating agent for an insured credit union,

as the case may be, or a decision to take action pursuant to

section 1831o of this title or section 1790a of this title, as

appropriate.

(2) Independent appellate process

The term ''independent appellate process'' means a review by an

agency official who does not directly or indirectly report to the

agency official who made the material supervisory determination

under review.

(3) Alternative means of dispute resolution

The term ''alternative means of dispute resolution'' has the

meaning given to such term in section 571 of title 5.

(4) Issues in controversy

The term ''issues in controversy'' means -

(A) any final agency decision involving any claim against an

insured depository institution or insured credit union for

which the agency has been appointed conservator or receiver or

for which a liquidating agent has been appointed, as the case

may be;

(B) any final action taken by an agency in the agency's

capacity as conservator or receiver for an insured depository

institution or by the liquidating agent appointed for an

insured credit union; and

(C) any other issue for which the appropriate Federal banking

agency or the National Credit Union Administration Board

determines that alternative means of dispute resolution would

be appropriate.

(g) Effect on other authority

Nothing in this section shall affect the authority of an

appropriate Federal banking agency or the National Credit Union

Administration Board to take enforcement or supervisory action.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 309, Sept. 23, 1994, 108 Stat.

2218.)

-TRANS-

TERMINATION OF ADMINISTRATIVE CONFERENCE OF UNITED STATES

For termination of Administrative Conference of United States,

see provision of title IV of Pub. L. 104-52, set out as a note

preceding section 591 of Title 5, Government Organization and

Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1790d of this title.

-CITE-

12 USC Sec. 4807 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4807. Time limit on agency consideration of completed

applications

-STATUTE-

(a) In general

Each Federal banking agency shall take final action on any

application to the agency before the end of the 1-year period

beginning on the date on which a completed application is received

by the agency.

(b) Waiver by applicant authorized

Any person submitting an application to a Federal banking agency

may waive the applicability of subsection (a) of this section with

respect to such application at any time.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 343, Sept. 23, 1994, 108 Stat.

2238.)

-CITE-

12 USC Sec. 4808 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4808. Revising regulatory requirements for transfers of all

types of assets with recourse

-STATUTE-

(a) Review and revision of regulations

(1) In general

During the 180-day period beginning on September 23, 1994, each

appropriate Federal banking agency shall, consistent with the

principles of safety and soundness and the public interest -

(A) review the agency's regulations and written policies

relating to transfers of assets with recourse by insured

depository institutions; and

(B) in consultation with the other Federal banking agencies,

promulgate regulations that better reflect the exposure of an

insured depository institution to credit risk from transfers of

assets with recourse.

(2) Regulations required

Before the end of the 180-day period beginning on September 23,

1994, each appropriate Federal banking agency shall prescribe the

regulations developed pursuant to paragraph (1)(B).

(b) Regulations required

(1) In general

After the end of the 180-day period beginning on September 23,

1994, the amount of risk-based capital required to be maintained,

under regulations prescribed by the appropriate Federal banking

agency, by any insured depository institution with respect to

assets transferred with recourse by such institution may not

exceed the maximum amount of recourse for which such institution

is contractually liable under the recourse agreement.

(2) Exception for safety and soundness

The appropriate Federal banking agency may require any insured

depository institution to maintain risk-based capital in an

amount greater than the amount determined under paragraph (1), if

the agency determines, by regulation or order, that such higher

amount is necessary for safety and soundness reasons.

(c) Coordination with section 1835(b) of this title

This section shall not be construed as superseding the

applicability of section 1835(b) of this title.

(d) Definitions

For purposes of this section, the terms ''appropriate Federal

banking agency'', ''Federal banking agency'', and ''insured

depository institution'' have the same meanings as in section 1813

of this title.

-SOURCE-

(Pub. L. 103-325, title III, Sec. 350, Sept. 23, 1994, 108 Stat.

2242.)

-CITE-

12 USC Sec. 4809 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 48 - FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT

-HEAD-

Sec. 4809. ''Plain language'' requirement for Federal banking

agency rules

-STATUTE-

(a) In general

Each Federal banking agency shall use plain language in all

proposed and final rulemakings published by the agency in the

Federal Register after January 1, 2000.

(b) Report

Not later than March 1, 2001, each Federal banking agency shall

submit to the Congress a report that describes how the agency has

complied with subsection (a) of this section.

(c) Definition

For purposes of this section, the term ''Federal banking agency''

has the meaning given that term in section 1813 of this title.

-SOURCE-

(Pub. L. 106-102, title VII, Sec. 722, Nov. 12, 1999, 113 Stat.

1471.)

-COD-

CODIFICATION

Section was enacted as part of the Gramm-Leach-Bliley Act, and

not as part of title III of Pub. L. 103-322 which comprises this

chapter.

-CITE-