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116th Congress     }                                 {    Rept. 116-57
                        HOUSE OF REPRESENTATIVES 
 1st Session       }                                 {          Part 1

======================================================================



 
                          CONSUMERS FIRST ACT

                                _______
                                

 May 10, 2019.-- Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Ms. Maxine Waters of California, from the Committee on Financial 
                   Services, submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1500]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 1500) to require the Consumer Financial 
Protection Bureau to meet its statutory purpose, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    11
Background and Need for Legislation..............................    11
Section-by-Section Analysis......................................    19
Hearings.........................................................    21
Committee Consideration..........................................    23
Committee Votes..................................................    23
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    28
Statement of Performance Goals and Estimates.....................    28
New Budget Authority and CBO Cost Estimate.......................    28
Committee Cost Estimate..........................................    30
Unfunded Mandate Statement.......................................    30
Advisory Committee...............................................    30
Application of Law to the Legislative Branch.....................    30
Earmark Statement................................................    30
Duplication of Federal Programs..................................    30
Changes to Existing Law..........................................    31

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Consumers First 
Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; sense of Congress.
Sec. 3. Consumer Financial Protection Bureau.
Sec. 4. Conforming amendments.
Sec. 5. Executive and administration powers.
Sec. 6. Offices of the Consumer Financial Protection Bureau.
Sec. 7. Consumer Advisory Board reforms.
Sec. 8. Effective date.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

  (a) Findings.--The Congress finds the following:
          (1) The Dodd-Frank Wall Street Reform and Consumer Protection 
        Act (Public Law 111-203) (``Dodd-Frank''), was signed into law 
        on July 21, 2010, in order to, among other things, advance the 
        goals of protecting consumers from predatory financial services 
        practices and products that led to the 2007-2009 financial 
        crisis.
          (2) Title X of Dodd-Frank established a new Federal 
        independent watchdog, known as the Consumer Financial 
        Protection Bureau (``Consumer Bureau''), with broad authority 
        to ensure that all hardworking consumers are given clear, 
        accurate information that they need to shop for mortgages, 
        credit cards, and other consumer financial products or services 
        and to protect consumers from hidden fees, abusive terms, and 
        other unfair, deceptive, or abusive acts or practices through 
        strong implementation and enforcement of Federal consumer 
        financial laws.
          (3) Before the Consumer Bureau was established, Federal 
        financial regulators were tasked with the dual responsibilities 
        of supervising institutions for safety and soundness and 
        compliance with consumer protections under Federal consumer 
        financial laws. These agencies often prioritized the 
        profitability of their regulated entities over the protection 
        of consumers, even when institutions were found to have engaged 
        in practices detrimental to their own customers' financial 
        well-being.
          (4) Congress purposefully created the independent Consumer 
        Bureau within the Federal Reserve System to address past 
        regulatory gaps in our country's financial regulatory regime--
        gaps that resulted in the most severe global financial crisis 
        since the Great Depression. Among other things, Federal 
        financial regulators were too reluctant to exercise their 
        rulemaking, supervisory, and enforcement authorities to protect 
        consumers from the misdeeds of the Consumer Bureau's regulated 
        entities. In creating the Consumer Bureau, Congress explicitly 
        laid out in statute the Consumer Bureau's purpose, five 
        objectives, and six primary functions. Specifically:
                  (A) Section 1021(a) of Dodd-Frank states that the 
                Consumer Bureau, ``shall seek to implement and, where 
                applicable, enforce Federal consumer financial law 
                consistently for the purpose of ensuring that all 
                consumers have access to markets for consumer financial 
                products and services and that markets for consumer 
                financial products and services are fair, transparent, 
                and competitive''.
                  (B) Section 1021(b) of Dodd-Frank authorizes the 
                Consumer Bureau, ``to exercise its authorities under 
                Federal consumer financial law for the purposes of 
                ensuring that, with respect to consumer financial 
                products and services--(1) consumers are provided with 
                timely and understandable information to make 
                responsible decisions about financial transactions; (2) 
                consumers are protected from unfair, deceptive, or 
                abusive acts and practices and from discrimination; (3) 
                outdated, unnecessary, or unduly burdensome regulations 
                are regularly identified and addressed in order to 
                reduce unwarranted regulatory burdens; (4) Federal 
                consumer financial law is enforced consistently, 
                without regard to the status of a person as a 
                depository institution, in order to promote fair 
                competition; and (5) markets for consumer financial 
                products and services operate transparently and 
                efficiently to facilitate access and innovation.''.
                  (C) Section 1021(c) of Dodd-Frank establishes the 
                primary functions of the Consumer Bureau to be, ``(1) 
                conducting financial education programs; (2) 
                collecting, investigating, and responding to consumer 
                complaints; (3) collecting, researching, monitoring, 
                and publishing information relevant to the functioning 
                of markets for consumer financial products and services 
                to identify risks to consumers and the proper 
                functioning of such markets; (4) subject to sections 
                1024 through 1026, supervising covered persons for 
                compliance with Federal consumer financial law, and 
                taking appropriate enforcement action to address 
                violations of Federal consumer financial law; (5) 
                issuing rules, orders, and guidance implementing 
                Federal consumer financial law; and (6) performing such 
                support activities as may be necessary or useful to 
                facilitate the other functions of the Bureau.''.
          (5) In doing so, Congress explicitly laid out these consumer-
        focused purpose, objectives, and primary functions for the 
        Consumer Bureau to ensure that all consumers and all 
        communities are protected. This is of extreme importance to 
        communities of color who have been disproportionately impacted 
        by the inequities of the financial system, resulting in an 
        extreme racial wealth divide. Decades of segregation and 
        discrimination have prevented consumers of colors from amassing 
        wealth equal to their white counterparts, while predatory 
        financial practices of have stripped consumers of color of 
        their nominal existing wealth. For example, over the past 30 
        years, the average wealth of White families has grown by 84 
        percent--1.2 times the rate of growth for the Latino population 
        and three times the rate of growth for the Black population. In 
        light of historical practices and current-day disparities in 
        banking and lending practices, the Consumer Bureau plays a key 
        role in protecting communities of color from wealth-stripping 
        financial products and ensuring their right to wealth building 
        opportunities. The agency's enforcement actions in auto 
        lending, mortgages, and credit cards, and its rulemaking 
        efforts have sought to address the predatory financial products 
        such as payday loans and prepaid cards that are prolific in 
        communities of color. The Consumer Bureau is essential in 
        protecting vulnerable communities from discriminatory financial 
        practices that has both perpetuated and exacerbated the racial 
        wealth gap.
          (6) Under Dodd-Frank, the Deputy Director of the Consumer 
        Bureau shall serve as the Acting Director in the absence or 
        unavailability of the Director, until the President appoints 
        and the Senate confirms a new Director. Despite the plain 
        letter of the law establishing a succession order to fill a 
        vacancy in the Director's position and the clear legislative 
        history underscoring the importance of having an independent 
        Federal consumer-focused agency, when the Consumer Bureau 
        Director Richard Cordray resigned in November 2017, President 
        Trump refused to recognize the Deputy Director as the rightful 
        head of the agency and instead installed Mr. Mick Mulvaney, the 
        Director of the White House Office of Management and Budget, to 
        serve as the Consumer Bureau's Acting Director. This 
        appointment of a White House cabinet official to run the 
        Consumer Bureau raises profound conflict of interest questions 
        and undermines the vital independent nature of the agency.
          (7) Additionally, the position of Acting Director is, by its 
        nature, intended to be a temporary assignment to maintain the 
        status quo at an agency and to ensure the agency is fulfilling 
        its statutory purpose and mandates, until the President 
        appoints, and the Senate confirms a permanent Director. 
        Nevertheless, during his tenure, Mr. Mulvaney instituted 
        drastic and severe changes to the Consumer Bureau's daily 
        operations and priorities contrary to the agency's statutory 
        purpose and mandates.
          (8) The daily operations of a Federal agency are guided by 
        its official mission contained in its long-term strategic plan. 
        The Consumer Bureau's mission should embrace both the spirit 
        and plain letter of the law by fully recognizing the agency's 
        statutory purpose, objectives, and functions. It is troubling 
        that the Consumer Bureau, under Mr. Mulvaney, issued a 
        Strategic Plan for Fiscal Year (``FY'') 2018-FY 2022 that 
        appears to deemphasize the Consumer Bureau's core mandate under 
        section 1021(a) of Dodd-Frank to, ``enforce Federal consumer 
        financial law consistently for the purpose of ensuring that all 
        consumers have access to markets for consumer financial 
        products and services'', by not referencing the importance of 
        enforcement in its mission. Instead, it emphasizes financial 
        education by stating that the agency's new mission is, ``[t]o 
        regulate the offering and provision of consumer financial 
        products or services under the Federal consumer financial laws 
        and to educate and empower consumers to make better informed 
        financial decisions''. This is in stark contrast from the 
        Consumer Bureau's Strategic Plan for FY 2013-FY 2017, which 
        stated that the agency's mission is helping, ``consumer finance 
        markets work by making rules more effective, by consistently 
        and fairly enforcing those rules, and by empowering consumers 
        to take more control over their economic lives'' (emphasis 
        added).
          (9) Mr. Mulvaney has been praised by the White House for his 
        efforts to undermine the Consumer Bureau, with one anonymous 
        advisor acknowledging in a July 24, 2018, Politico article 
        that, ``His mission was to blow that up, which he has. He is 
        very well-suited to the chaos.''. Mr. Mulvaney's misguided 
        actions have included, among other things--
                  (A) stopping payments from the Civil Penalty Fund to 
                harmed consumers;
                  (B) trying to reduce the Consumer Bureau's funding 
                and staffing by initially requesting $0 be transferred 
                from the Federal Reserve Board of Governors to carry 
                out the agency's work, imposing a freeze on hiring 
                professional career staff, and by arbitrarily directing 
                staff to cut the agency's budget by \1/5\;
                  (C) politicizing the work of the Consumer Bureau by 
                making unusual efforts to fill the independent agency 
                with political appointees;
                  (D) reducing the Consumer Bureau's enforcement work, 
                including taking only six enforcement actions in the 
                first three quarters of 2018 (compared with 54 
                enforcement actions taken by the agency in 2015, 42 
                enforcement actions in 2016 and 36 enforcement actions 
                in 2017), and dropping existing lawsuits and 
                investigations into predatory payday lenders;
                  (E) taking steps that would undermine efforts to 
                promote fair lending and combat discriminatory 
                practices, including by hiring, and later refusing to 
                remove, a political appointee with a history of racist 
                written commentary to oversee the Office of 
                Supervision, Enforcement, and Fair Lending, stripping 
                away the enforcement powers of the Office of Fair 
                Lending and Equal Opportunity, seeking to curb the 
                Consumer Bureau's data collection under the Home 
                Mortgage Disclosure Act, and indicating the Consumer 
                Bureau would reconsider its approach toward enforcing 
                the Equal Credit Opportunity Act;
                  (F) changing the role of the Office of Students and 
                Young Consumers and, according to an August 27, 2018, 
                resignation letter from Seth Frotman, the Consumer 
                Bureau's former Assistant Director and Student Loan 
                Ombudsman, ``when new evidence came to light showing 
                that the nation's largest banks were ripping off 
                students on campuses across the country by saddling 
                them with legally dubious account fees, Bureau 
                leadership suppressed the publication of a report 
                prepared by Bureau staff'';
                  (G) abandoning the accepted and efficient practice of 
                having its examiners review, as part of their routine 
                examinations, creditors' compliance with the Military 
                Lending Act in order to ensure the detection and 
                assessment of risky activities that could jeopardize 
                vital protections provided to active-duty 
                servicemembers and their families;
                  (H) creating an Office of Cost Benefit Analysis that 
                prioritizes businesses' expenses over harm caused to 
                consumers, and unduly constrains oversight of the 
                Consumer Bureau's regulated entities;
                  (I) freezing data collection to the detriment of 
                supervision and enforcement;
                  (J) seeking to block the publication of the nature of 
                consumers' complaints and how entities resolved them in 
                the publicly available and transparent Consumer 
                Complaint Database;
                  (K) restricting key input and feedback from a wide 
                range of external stakeholders by effectively 
                terminating members' positions on three advisory 
                boards, including the statutorily mandated Consumer 
                Advisory Board;
                  (L) proposing policies, including those regarding no-
                action letters, model disclosure pilot projects, and 
                product sandboxes, that could put many kinds of 
                financial institutions in an enforcement-free zone, 
                letting bad actors that harm consumers off the hook 
                entirely from enforcement, and allowing them to ignore 
                the law; and
                  (M) neglecting to impose promptly any civil money 
                penalty on a bank when it was found to be, among other 
                things, improperly obtaining consumer reports and 
                furnishing to consumer reporting agencies inaccurate 
                information about consumers' credit.
          (10) The repeated efforts under Mr. Mulvaney's leadership to 
        hamstring the good work, passion, commitment, and the capacity 
        of dedicated professional, career Consumer Bureau staff to 
        fulfill the agency's statutory mission has likely contributed 
        to low employee morale. According to a government-wide annual 
        survey published in December 2018 that was conducted by the 
        nonprofit, nonpartisan Partnership for Public Service, the 
        Consumer Bureau experienced the largest decline in employee 
        morale for a government agency of its size. A workplace with 
        low morale undermines, among other things, the agency's ability 
        to hold bad actors accountable when they harm consumers, and if 
        unaddressed, will distort the functioning of fair and 
        competitive consumer marketplaces.
          (11) Despite the fact that the agency has been referred to as 
        the Consumer Financial Protection Bureau since it was created 
        in 2010, Mr. Mulvaney opted to change the agency's well-known 
        name. Although this decision is supposedly intended to ensure 
        that the agency is in compliance with Dodd-Frank, when this 
        change is viewed in conjunction with the other detrimental 
        actions to undermine the effectiveness of the agency, it can 
        only be interpreted as an attempt to reduce the public's 
        awareness of, and significant support for, the agency's role as 
        the top Federal consumer cop as well as to obscure the public's 
        ability to easily identify the appropriate Federal agency to 
        contact when faced with predatory behavior by financial actors. 
        As such, while some may view this particular decision as minor, 
        the action served as an important symbolic and literal maneuver 
        by the Trump Administration, through its appointment of Mr. 
        Mulvaney, to diminish and undermine the consumer-focused 
        mission of the Consumer Bureau. Director Kathy Kraninger, who 
        was duly nominated by the President and confirmed by the 
        Senate, announced plans in an email to staff on December 19, 
        2018, to reverse course and return to utilizing the agency's 
        well-known name. However, questions remain regarding how this 
        change will be implemented and to what extent the agency may 
        continue to utilize Mr. Mulvaney's preferred name in certain 
        circumstances.
          (12) During Mr. Mulvaney's more than 12-month tenure running 
        the agency, he only appeared once before the House Financial 
        Services Committee to discuss his activities at the Consumer 
        Bureau. This is despite the fact that the law requires, at a 
        minimum, the Director's testimony before the Committee semi-
        annually. This weak congressional oversight under the direction 
        of the previous Republican Majority pales in comparison to 
        their oversight of the Consumer Bureau during former Director 
        Richard Cordray's tenure. During Director Cordray's tenure, he 
        and other senior Consumer Bureau officials testified before 
        Congress more than 60 times; the agency was compelled to 
        produce more than 200,000 pages of documents in response to 
        over 90 letters of inquiry; more than 20 subpoenas were sent to 
        the Consumer Bureau; and several of the Consumer Bureau's 
        former and current employees were compelled to sit for 
        depositions over 21 days, that lasted 136 hours, and produced 
        3,194 pages of transcripts.
          (13) Dodd-Frank gives the Director of the Consumer Bureau 
        broad administrative and executive powers to, among other 
        things: fix the number of, and appoint and direct, all 
        employees of the agency; direct the establishment and 
        maintenance of divisions or other offices within the agency; 
        determine the character of, and the necessity for, the 
        obligations and expenditure of funds; and the use and 
        expenditure of funds. These powers, however, are required to be 
        exercised in a manner consistent with carrying out the 
        responsibilities under Title X of Dodd-Frank, which includes 
        complying with the enumerated Federal consumer financial laws 
        under the Title, and satisfying the obligations in other 
        applicable laws. Mr. Mulvaney's destructive actions have 
        demonstrated the need for legislation to reorient the 
        Director's discretionary authority to ensure the maintenance of 
        all statutorily mandated policies, functions, and offices of 
        the Consumer Bureau regardless of who is leading the agency.
  (b) Sense of Congress.--The following is the sense of Congress:
          (1) The Consumer Financial Protection Bureau should meet its 
        statutory purpose in a transparent and accountable manner by 
        operating in a way that is consistent with both the spirit and 
        plain letter of the law. This includes the agency fully 
        carrying out the agency's statutory purpose, objectives, and 
        functions, and the agency being transparent, timely, and 
        responsive to all requests from Congress.
          (2) Dodd-Frank underscores that the agency is designed to 
        serve as an independent Federal agency that is primarily 
        focused on the protection of all consumers, without any undue 
        influence of partisan whims and special industry interests, in 
        carrying out its responsibilities and duties.
          (3) The official name of the agency should be consistent with 
        this mandate, and the agency should, figuratively and 
        literally, put ``Consumers'' first by using its better-known 
        name as the ``Consumer Financial Protection Bureau''. Thus, any 
        remaining utilization by the agency of the name, ``Bureau of 
        Consumer Financial Protection'', or the acronym ``BCFP'', 
        should cease in all forms.
          (4) The statute establishing the Consumer Bureau has been 
        grossly misinterpreted under Mr. Mulvaney's leadership, in a 
        manner that is inconsistent with the agency's statutory 
        purpose, objectives, and functions. One example of this was Mr. 
        Mulvaney's inane suggestion that the statutory requirement for 
        the Director to appear before relevant Congressional Committees 
        to discuss its semi-annual reports could be interpreted as 
        requiring the Director merely to attend a hearing and not 
        answer questions, despite the well-established interpretation 
        of a similar statutory requirement for the Chair of the Federal 
        Reserve Board of Governors to appear before the House Financial 
        Services Committee and the Senate Banking, Housing, and Urban 
        Affairs Committee on a semi-annual basis about the monetary 
        policy report, as required by the Humphrey-Hawkins Full 
        Employment Act. In the face of such blatant and disrespectful 
        attempts to warp the authorizing and oversight role of the 
        first branch of the Federal Government--the United States 
        Congress--by the Trump Administration, Congress must, in this 
        instance, now refine the Consumer Bureau's authority to ensure 
        that the vital role that the Consumer Bureau should be playing 
        within the country's financial regulatory regime is not 
        effectively destroyed by the agency's current leadership.
          (5) The Consumer Bureau, now under a new Director, should 
        promptly reverse all anti-consumer actions taken during Mr. 
        Mulvaney's tenure, including the actions identified by this 
        legislation, to ensure that the agency is fully complying with 
        its statutory purpose, objectives, and functions to protect all 
        consumers, including communities of color and vulnerable 
        populations. One important action is for the Consumer Bureau to 
        resume robust fair lending enforcement to ensure that every 
        consumer has fair and equal access to affordable financial 
        products and services. Another demonstration of this would be 
        for the Consumer Bureau to immediately resume supervision of 
        its regulated entities for compliance with the Military Lending 
        Act to ensure for the most robust and efficient protection of 
        active-duty servicemembers and their families. Other examples 
        include the Consumer Bureau significantly revising its 
        strategic plan to align it with its statutory purpose, 
        objectives and functions, and for the agency to immediately 
        resume coordinating closely with other Federal agencies, such 
        as the Department of Education and the Department of Defense, 
        and State regulators, as is required by section 1015 of Dodd-
        Frank to, ``promote consistent regulatory treatment of consumer 
        financial and investment products and services.''
          (6) While the legislation is a direct response to address 
        many of the misguided decisions that have been orchestrated 
        under Mr. Mulvaney's leadership at the Consumer Bureau that 
        have been exposed to the public, as of the date of the bill's 
        introduction, and sharply criticized by numerous Federal and 
        State officials, including law enforcement, as well as 
        organizations representing servicemembers, senior citizens, and 
        other vulnerable consumer populations, this legislation should 
        not be viewed as an exhaustive list to fix all the damaging 
        actions that may have occurred at this agency since the 
        departure of former Director Cordray in November 2017, 
        particularly since detailed information revealing the full 
        scope, nature, and extent of the current flawed operation of 
        the agency, and the adverse impact resulting from these 
        actions, may not yet be publicly available. Rather, this 
        legislation should be interpreted as an attempt to highlight 
        and resolve a small sample of the publicly known egregious 
        statements, decisions, and actions that have occurred since 
        November 2017.

SEC. 3. CONSUMER FINANCIAL PROTECTION BUREAU.

  (a) In General.--Section 1011(a) of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5491(a)) is amended by striking ``Bureau of 
Consumer Financial Protection'' and inserting ``Consumer Financial 
Protection Bureau''.
  (b) Deeming of Name.--Any reference in any law, regulation, document, 
record, or other paper of the United States to the ``Bureau of Consumer 
Financial Protection'' shall be deemed a reference to the ``Consumer 
Financial Protection Bureau''.
  (c) Name Use Requirement.--Section 1011 of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5491) is amended by adding at the end 
the following:
  ``(f) Name Use Requirement.--The Consumer Financial Protection Bureau 
shall refer to itself in any public communication, including on any 
website, as the `Consumer Financial Protection Bureau' or the 
`CFPB'.''.

SEC. 4. CONFORMING AMENDMENTS.

  (a) In General.--The Acts and provisions described under subsection 
(b) are amended by striking ``Bureau of Consumer Financial Protection'' 
each place such term appears (including in headings and items in table 
of contents) and inserting ``Consumer Financial Protection Bureau''.
  (b) Acts To Conform.--The Acts and provisions described in this 
subsection are as follows:
          (1) The Alternative Mortgage Transaction Parity Act of 1982 
        (12 U.S.C. 3801 et seq.).
          (2) The Consumer Credit Protection Act (15 U.S.C. 1601 et 
        seq.).
          (3) The Dodd-Frank Wall Street Reform and Consumer Protection 
        Act (12 U.S.C. 5301 et seq.).
          (4) The Expedited Funds Availability Act (12 U.S.C. 4001 et 
        seq.).
          (5) The Federal Deposit Insurance Act (12 U.S.C. 1811 et 
        seq.).
          (6) The Federal Financial Institutions Examination Council 
        Act of 1978 (12 U.S.C. 3201 et seq.).
          (7) The Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989 (12 U.S.C. 1811 note et seq.).
          (8) The Financial Literacy and Education Improvement Act (20 
        U.S.C. 9701 et seq.).
          (9) Section 626 of the Financial Services and General 
        Government Appropriations Act, 2009 (Division D of Public Law 
        111-8; 12 U.S.C. 5538).
          (10) The Gramm-Leach-Bliley Act (12 U.S.C. 1811 note et 
        seq.).
          (11) The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 
        et seq.).
          (12) Section 10(a)(4) of the Homeowners Protection Act of 
        1998 (12 U.S.C. 4901 et seq.).
          (13) The Inspector General Act of 1978 (5 U.S.C. App 2).
          (14) The Interstate Land Sales Full Disclosure Act (15 U.S.C. 
        1701 et seq.).
          (15) The Real Estate Settlement Procedures Act of 1974 (12 
        U.S.C. 2601 et seq.).
          (16) Title LXII of the Revised Statutes of the United States 
        (12 U.S.C. 21 et seq.).
          (17) The Right to Financial Privacy Act of 1978 (12 U.S.C. 
        3401 et seq.).
          (18) The S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 
        5101 et seq.).
          (19) The Telemarketing and Consumer Fraud and Abuse 
        Prevention Act (15 U.S.C. 6101 et seq.).
          (20) Sections 552a(w) and 3132(a)(1)(D) of title 5, United 
        States Code.
          (21) Section 987(g)(3)(E) of title 10, United States Code.
          (22) Sections 3502(5) and 3513(c) of title 44, United States 
        Code.

SEC. 5. EXECUTIVE AND ADMINISTRATION POWERS.

  (a) Office Responsibilities.--Section 1012 of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5492) is amended--
          (1) by redesignating subsection (c) as subsection (d); and
          (2) by inserting after subsection (b) the following:
  ``(c) Office Responsibilities.--Notwithstanding subsections (a) and 
(b), section 1013(a), and any other provision of law, with respect to 
the specific functional units and offices described under subsections 
(b), (c), (d), (e), (g), and (h) of section 1013 and the advisory 
boards described under section 1014, the Director--
          ``(1) shall ensure that such functional units, offices, and 
        boards perform the functions, duties, and coordination assigned 
        to them under the applicable provision of section 1013 or 1014; 
        and
          ``(2) may not reorganize or rename such units, offices, and 
        boards in a manner not provided for under the applicable 
        provision of section 1013 or 1014.''.
  (b) Duty To Provide Adequate Staffing.--Section 1013(a)(1) of the 
Consumer Financial Protection Act of 2010 (12 U.S.C. 5493(a)(1)) is 
amended by adding at the end the following:
                  ``(D) Duty to provide adequate staffing.--The 
                Director shall ensure that the specific functional 
                units and offices described under subsections (b), (c), 
                (d), (e), (g), and (h) of section 1013, as well as 
                other units and offices with supervisory and 
                enforcement duties, are provided with sufficient staff 
                to carry out the functions, duties, and coordination of 
                those units and offices.''.
  (c) Limitation on Political Appointees.--Section 1013(a)(1) of the 
Consumer Financial Protection Act of 2010 (12 U.S.C. 5493(a)(1)) is 
amended by adding at the end the following:
                  ``(E) Limitation on political appointees.--
                          ``(i) In general.--In appointing employees of 
                        the Bureau who are political appointees, the 
                        Director shall ensure that the number and 
                        duties of such political appointees are as 
                        similar as possible to those of the other 
                        Federal primary financial regulatory agencies.
                          ``(ii) Political appointees defined.--For 
                        purposes of this subparagraph, the term 
                        `political appointee' means an employee who 
                        holds--
                                  ``(I) a position which has been 
                                excepted from the competitive service 
                                by reason of its confidential, policy-
                                determining, policy-making, or policy-
                                advocating character;
                                  ``(II) a position in the Senior 
                                Executive Service as a noncareer 
                                appointee (as such term is defined in 
                                section 3132(a) of title 5, United 
                                States Code); or
                                  ``(III) a position under the 
                                Executive Schedule (subchapter II of 
                                chapter 53 of title 5, United States 
                                Code).''.
  (d) Public Availability of Complaint Information.--
          (1) In general.--Section 1013(b)(3) of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5493(b)(3)) is amended--
                  (A) in subparagraph (A)--
                          (i) by inserting ``publicly available'' 
                        before ``website'';
                          (ii) by inserting ``publicly available'' 
                        before ``database'', each place such term 
                        appears; and
                          (iii) by adding at the end the following: 
                        ``The Director shall ensure that the landing 
                        page of the main website of the Bureau contains 
                        a clear and conspicuous hyperlink to the 
                        consumer complaint database described in this 
                        subparagraph and shall ensure that such 
                        database is user-friendly and in plain writing 
                        (as such term is defined in the Plain Writing 
                        Act of 2010). The Director shall ensure that 
                        all information on the website or the database 
                        that explains how to file a complaint with the 
                        Bureau, as well as all reports of the Bureau 
                        with respect to information contained in the 
                        database, shall be provided in each of the 5 
                        most commonly spoken languages, other than 
                        English, in the United States, as determined by 
                        the Bureau of the Census on an ongoing basis, 
                        and in formats accessible to individuals with 
                        hearing or vision impairments.''; and
                  (B) by adding at the end the following:
                  ``(E) Public availability of information.--
                          ``(i) In general.--The Director shall--
                                  ``(I) make all consumer complaints 
                                available to the public on a website of 
                                the Bureau;
                                  ``(II) place a clear and conspicuous 
                                hyperlink on the landing page of the 
                                main website of the Bureau to the 
                                website described under subclause (I); 
                                and
                                  ``(III) ensure that such website--
                                          ``(aa) is searchable and 
                                        sortable by both consumer 
                                        financial product or service 
                                        and by covered person; and
                                          ``(bb) is user-friendly and 
                                        written in plain language.
                          ``(ii) Inclusion of complaints submitted with 
                        inquiries.--For purposes of clause (i), in 
                        addition to all complaints described under 
                        subparagraph (A), consumer complaints shall 
                        include any complaints submitted with, or as 
                        part of, an inquiry described under section 
                        1034.
                          ``(iii) Removal of personally identifiable 
                        information.--In making the information 
                        described under clause (i) available to the 
                        public, the Director shall remove all 
                        personally identifiable information.''.
          (2) Rule of construction.--
                  (A) In general.--The Director of the Consumer 
                Financial Protection Bureau shall ensure--
                          (i) that the database and website described 
                        under section 1013(b)(3) of the Consumer 
                        Financial Protection Act of 2010 have, at a 
                        minimum, the same availability, transparency, 
                        and functionality that such database and 
                        website had prior to November 24, 2017; and
                          (ii) that consumers are able, at a minimum, 
                        to submit complaints to the Bureau with respect 
                        to--
                                  (I) any covered person or service 
                                provider; and
                                  (II) any financial product or 
                                service.
                  (B) Definitions.--For purposes of this paragraph, the 
                terms ``covered person'', ``financial product or 
                service'', and ``service provider'' have the meaning 
                given those terms, respectively, under section 1002 of 
                the Consumer Financial Protection Act of 2010.
  (e) Memoranda of Understanding.--
          (1) Report on current mous.--Not later than the end of the 
        30-day period beginning on the date of enactment of this Act, 
        the Director of the Consumer Financial Protection Bureau shall 
        issue a report to the Committee on Financial Services of the 
        House of Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate listing--
                  (A) each memorandum of understanding in effect with 
                the Bureau on November 24, 2017;
                  (B) any changes made to such a memorandum of 
                understanding since such date, including any memorandum 
                of understanding rescinded since such date; and
                  (C) a justification for each such change or 
                rescission.
          (2) Semi-annual report on mous.--Section 1016(c) of the 
        Consumer Financial Protection Act of 2010 (12 U.S.C. 5496(c)) 
        is amended--
                  (A) in paragraph (8), by striking ``and'' at the end;
                  (B) in paragraph (9), by striking the period and 
                inserting a semicolon; and
                  (C) by adding at the end the following:
          ``(10) a list of each memorandum of understanding in effect 
        with the Bureau, any changes made to a memorandum of 
        understanding since the last report was made under subsection 
        (b), and a justification for each such change;''.
  (f) Additional Report Information on Consumer Savings.--Section 1013 
of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5493) is 
amended by adding at the end the following:
  ``(i) Additional Report Information on Consumer Savings.--In issuing 
each report required under section 502(d) of the Credit CARD Act of 
2009, the Bureau shall include a numerical estimate of the amount that 
such Act has saved consumers in fees impacted by such Act, relative to 
the level of such fees prior to the enactment of such Act.''.

SEC. 6. OFFICES OF THE CONSUMER FINANCIAL PROTECTION BUREAU.

  (a) Clarification of the Duties of the Office of Fair Lending and 
Equal Opportunity.--Section 1013(c)(2) of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5493(c)(2)) is amended--
          (1) by striking ``Office of Fair Lending and Equal 
        Opportunity shall have such powers and duties as the Director 
        may delegate to the Office, including'' and inserting ``powers 
        and duties of the Office of Fair Lending and Equal Opportunity 
        shall include'';
          (2) in subparagraph (C), by striking ``and'' at the end;
          (3) in subparagraph (D), by striking the period and inserting 
        a semicolon; and
          (4) by adding at the end the following:
                  ``(E) implementing the Bureau's enforcement and 
                supervisory authority with respect to fair lending 
                laws; and
                  ``(F) such additional powers and duties as the 
                Director may determine appropriate.''.
  (b) Office of Students and Young Consumers.--
          (1) In general.--Section 1013 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5493), as amended by section 
        5(f), is further amended by adding at the end the following:
  ``(j) Office of Students and Young Consumers.--
          ``(1) In general.--The Director shall, not later than the end 
        of the 60-day period beginning on the date of enactment of this 
        section, establish an Office of Students and Young Consumers, 
        which shall work to empower students, young people, and their 
        families to make more informed financial decisions about saving 
        and paying for college, accessing safer and more affordable 
        financial products and services, all matters related to private 
        education loans (as defined under section 1035(e)), and 
        repaying student loan debt, including private education loans.
          ``(2) Head of the office.--The head of the Office of Students 
        and Young Consumers shall be the Assistant Director and Student 
        Loan Ombudsman, and the Assistant Director and Student Loan 
        Ombudsman shall carry out all functions established under 
        section 1035 through the Office of Students and Young 
        Consumers.
          ``(3) Supervisory, enforcement, and regulatory matters.--The 
        Office of Students and Young Consumers shall assist in all 
        supervisory, enforcement, and regulatory matters of the Bureau 
        related to the functions of the Office.
          ``(4) Coordination.--The Director shall enter into memoranda 
        of understanding and similar agreements with the Department of 
        Education and other Federal and State agencies, as appropriate, 
        in order to carry out the business of the Office of Students 
        and Young Consumers.''.
          (2) Renaming and appointment clarification of the private 
        education loan ombudsman.--
                  (A) In general.--Section 1035 of the Consumer 
                Financial Protection Act of 2010 (12 U.S.C. 5535) is 
                amended--
                          (i) in the heading of the section by striking 
                        ``private education'' and inserting ``assistant 
                        director and student'';
                          (ii) in subsection (a), by striking ``The 
                        Secretary, in consultation with the Director, 
                        shall designate a Private Education Loan 
                        Ombudsman'' and inserting ``The Director shall 
                        designate an individual as the Assistant 
                        Director and Student Loan Ombudsman'';
                          (iii) in subsection (b), by striking ``The 
                        Secretary and the Director'' and inserting 
                        ``The Director''; and
                          (iv) in subsection (d)(2), by inserting ``the 
                        Director,'' before ``the Secretary,''.
                  (B) Clerical amendment.--The table of contents under 
                section 1(b) of the Dodd-Frank Wall Street Reform and 
                Consumer Protection Act is amended, in the item 
                relating to section 1035, by striking ``Private 
                education'' and inserting ``Assistant director and 
                student''.
                  (C) Deeming of name.--Any reference in any law, 
                regulation, document, record, or other paper of the 
                United States to the ``Private Education Loan 
                Ombudsman'' shall be deemed a reference to the 
                ``Assistant Director and Student Loan Ombudsman''.
  (c) Semi-Annual Report to Congress on Certain Offices of the 
Bureau.--Section 1016(c) of the Consumer Financial Protection Act of 
2010 (12 U.S.C. 5496(c)), as amended by section 5(e)(2), is further 
amended by adding at the end the following:
          ``(11) with respect to each of the specific functional units 
        and offices established under section 1013--
                  ``(A) a detailed description of the activities of the 
                unit or office since the last report was made under 
                subsection (b); and
                  ``(B) an analysis of the efforts of the Bureau to 
                achieve the duties of the unit or office; and
          ``(12) with respect to each specific functional units and 
        offices established under section 1013, as well as each other 
        unit and office with supervisory and enforcement duties, a 
        break down of the number of political and professional career 
        staff assigned to and employed by each unit or office at the 
        end of the reporting period.''.
  (d) Function of Any Unit or Office Established To Conduct Cost 
Benefit Analysis.--Any unit or office established to conduct cost 
benefit analysis within the Consumer Financial Protection Bureau shall, 
as its sole function, carry out the considerations required by section 
1022(b)(2)(A) of the Consumer Financial Protection Act of 2010 (12 
U.S.C. 5512(b)(2)(A)).

SEC. 7. CONSUMER ADVISORY BOARD REFORMS.

  (a) In General.--Section 1014 of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5494) is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) Membership.--
          ``(1) Qualifications.--In appointing the members of the 
        Consumer Advisory Board, the Director shall--
                  ``(A) seek to assemble a diverse and inclusive group 
                of experts in consumer protection, financial services, 
                community development, fair lending and civil rights, 
                and consumer financial products or services and 
                representatives of depository institutions that 
                primarily serve underserved communities, and 
                representatives of communities that have been 
                significantly impacted by higher-priced mortgage loans, 
                and seek representation of the interests of covered 
                persons and consumers, without regard to party 
                affiliation; and
                  ``(B) ensure that at least \2/3\ of the members 
                represent the interests of consumers, including experts 
                in consumer protection, fair lending, civil rights, and 
                representatives of communities that have been 
                significantly impacted by higher-priced mortgage loans 
                and other products that resulted in consumer harm.
          ``(2) Number of members.--The Director shall appoint not 
        fewer than 25 members to the Consumer Advisory Board, and not 
        fewer than 6 members shall be appointed upon the recommendation 
        of the regional Federal Reserve Bank Presidents, on a rotating 
        basis.
          ``(3) Membership rights after charter change.--Any change to 
        the charter for the Consumer Advisory Board affecting the 
        membership shall not preclude prior or current members from 
        applying for consideration to serve on a reconstituted Consumer 
        Advisory Board.''; and
          (2) in subsection (c)--
                  (A) by striking ``meet from'' and inserting ``meet in 
                person from''; and
                  (B) by adding at the end the following: ``The Bureau 
                shall provide adequate notice to the members of the 
                Consumer Advisory Board of the time and date of each 
                meeting, and of any meeting cancellations.''
  (b) Inclusion of the Director in Meetings and Access to Bureau 
Staff.--Section 1014 of the Consumer Financial Protection Act of 2010 
(12 U.S.C. 5494) is amended by adding at the end the following:
  ``(e) Inclusion of the Director in Meetings and Access to Bureau 
Staff.--With respect to each in person meeting of the Consumer Advisory 
Board--
          ``(1) the Director shall attend such meeting in person; and
          ``(2) the Director shall ensure that the members of the 
        Consumer Advisory Board have an opportunity to meet and engage 
        in person with all appropriate staff and office of the 
        Bureau.''.
  (c) Treatment of Members of the Consumer Advisory Board.--
Notwithstanding any other law--
          (1) any member of the Consumer Advisory Board of the Consumer 
        Financial Protection Bureau on November 1, 2017, may continue 
        to serve as a member of such advisory board until March 27, 
        2020, and may not be removed from such position without cause 
        by the Director of the Bureau until such date; and
          (2) any member of the Consumer Advisory Board of the Consumer 
        Financial Protection Bureau on the date of enactment of this 
        Act, may continue to serve as a member of such advisory board 
        until March 27, 2020, and may not be removed from such position 
        without cause by the Director of the Bureau until such date.
  (d) Additional Requirements for Advisory Committees.--Section 1013 of 
the Consumer Financial Protection Act of 2010 (12 U.S.C. 5493), as 
amended by section 6(b)(1), is further amended by adding at the end the 
following:
  ``(k) Advisory Committee Requirements.--
          ``(1) Qualifications.--In appointing members of any advisory 
        committee, other than the Consumer Advisory Board, the Director 
        shall ensure that at least \1/3\ of the members represent the 
        interests of consumers, including experts in consumer 
        protection, fair lending, civil rights, and representatives of 
        communities that have been significantly impacted by higher-
        priced mortgage loans and other products that resulted in 
        consumer harm.
          ``(2) Selection of members representing minority-owned and 
        women-owned businesses.--In appointing members of any advisory 
        committee, the Director shall seek to promote diversity and 
        inclusion in making appointments, including by appointing 
        individuals who represent minority-owned and women-owned 
        businesses.''.

SEC. 8. EFFECTIVE DATE.

  This Act and the amendments made by this Act shall take effect on the 
date of the enactment of this Act, except that the Director of the 
Consumer Financial Protection Bureau shall have 30 days to complete any 
operational changes to the Bureau required by this Act or an amendment 
made by this Act.

                          Purpose and Summary

    On March 28, 2019, Chairwoman Maxine Waters introduced H.R. 
1500, the ``Consumer First Act,'' which amends the Consumer 
Financial Protection Act to ensure that the Consumer Financial 
Protection Bureau (Consumer Bureau) reverses the anti-consumer 
actions taken since November 2017, largely under Mr. Mick 
Mulvaney's direction, and returns to its mission of protecting 
consumers from unfair, deceptive, or abusive acts or practices 
by financial institutions as was originally intended by 
Congress when the Consumer Bureau was created in 2010.

                  Background and Need for Legislation

    More than a decade ago, the United States experienced one 
of the worst financial crises in its history, caused in large 
part by a failure to have strong protections implemented or 
enforced for consumers of financial products and services. 
There was a reluctance of the Federal regulators to implement 
and enforce consumer protection laws and exercise their 
authority to prevent predatory practices from occurring in the 
financial marketplace.
    Prior to the creation of the Consumer Financial Protection 
Bureau, the responsibility for supervising financial regulated 
entities for consumer protection was spread among the various 
Federal financial regulators, including the Board of Governors 
of the Federal Reserve System (Federal Reserve), the Federal 
Trade Commission (FTC), the Office of the Comptroller of the 
Currency (OCC), the Office of Thrift Supervision (which was 
abolished by Congress in 2010), the National Credit Union 
Administration (NCUA), and the Federal Deposit Insurance 
Corporation (FDIC). This resulted in a fragmented regulatory 
approach in which government agencies lacked clear regulatory 
accountability and coordination for monitoring consumer 
protection laws. Furthermore, Federal prudential regulators 
were tasked with dual, and often conflicting, duties of 
supervising the safety and soundness of financial institutions 
while also ensuring compliance with consumer protection laws. 
This fragmented and conflicted regulatory framework resulted in 
regulatory arbitrage and lax enforcement of consumer protection 
laws.
    The Committee held a series of hearings that examined the 
failures of these Federal regulators to combat predatory 
lending practices, which contributed to the 2008 financial 
crisis. The Committee's findings were later confirmed by the 
extensive investigation conducted by the Financial Crisis 
Inquiry Commission (FCIC), which concluded that:
          As irresponsible lending, including predatory and 
        fraudulent practices, became more prevalent, the 
        Federal Reserve and other regulators and authorities 
        heard warnings from many quarters. Yet the Federal 
        Reserve neglected its mission `to ensure the safety and 
        soundness of the nation's banking and financial system 
        and to protect the credit rights of consumers.' It 
        failed to build the retaining wall before it was too 
        late. And the Office of the Comptroller of the Currency 
        and the Office of Thrift Supervision, caught up in turf 
        wars, preempted state regulators from reining in 
        abuses.\1\
---------------------------------------------------------------------------
    \1\National Commission on the Casus of the Financial and Economic 
Crisis in the United States, The Financial Crisis Inquiry Report xxiii 
(2011).
---------------------------------------------------------------------------
    In the summer of 2010, Congress passed the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act). 
Title X of the law established the Consumer Financial 
Protection Bureau as the first ever independent Federal agency 
provided with rulemaking, supervisory, and enforcement 
authorities over the offering and provision of consumer 
financial products and services. The Consumer Bureau was 
intended to be a strong watchdog for all consumers, upholding 
their rights under the law and combating all forms of unfair, 
deceptive or abusive acts or practices by financial firms.
    Under the leadership of Consumer Bureau's first Director, 
Mr. Richard Cordray, the Consumer Bureau was a tremendous 
success, returning nearly $12 billion to over 30 million 
consumers who were harmed, receiving over 1.2 million consumer 
complaints about financial institutions (97 percent of which 
received a timely response), and making the financial 
marketplace stronger and fairer for all as Congress intended. 
Furthermore, because of the Consumer Bureau, American consumers 
no longer had to worry about exploding mortgages, hidden 
prepaid card fees, or unnecessary foreclosures due to weak 
servicing standards. The Consumer Bureau also helped to take 
the confusing jargon out of consumer lending by requiring easy-
to-understand disclosures and materials from financial 
institutions, empowering consumers to make the best financial 
decisions for themselves.

Mr. Mulvaney's tenure at the Consumer Bureau and its aftermath

    In November 2017, President Trump--in a controversial move 
that was challenged in court--designated his Office of 
Management and Budget (OMB) Director, Mick Mulvaney, to 
temporarily run the Consumer Bureau after Director Cordray 
resigned. After he arrived at the agency and until he departed 
in December 2018, Mr. Mulvaney worked to dismantle the Consumer 
Bureau and on several occasions appeared to prioritize the 
financial services industry at the expense of consumers. There 
are many actions the Consumer Bureau took under Mr. Mulvaney's 
leadership that were harmful to consumers, including:
           Politicizing the agency: After Mr. Mulvaney 
        arrived, the Trump Administration dispatched numerous 
        political appointees to run the Consumer Bureau, an 
        unusual approach for an independent regulatory agency 
        with enforcement powers, to control the work of the 
        professional, career employees. According to the 2016 
        U.S. Government Policy and Supporting Positions report, 
        commonly referred to as the ``Plum Book'', the Federal 
        Reserve, the Office of the Comptroller of the Currency, 
        and the Consumer Bureau at that time had zero political 
        appointees on staff beyond their Senate-confirmed 
        leadership. During Mr. Mulvaney's tenure, however, he 
        brought on as many as 12 political appointees. 
        According to one former career official, this dynamic 
        resulted in the suppression of a staff report exposing 
        predatory actions by the nation's largest banks that 
        charge students legally dubious account fees.\2\
---------------------------------------------------------------------------
    \2\Resignation Letter from Mr. Seth Frotman, former Assistant 
Director & Student Loan Ombudsman, Consumer Bureau, to The Honorable 
Mick Mulvaney (Aug. 27, 2018), available at: https://www.nclc.org/
images/pdf/student_loans/Frotman_Letter.pdf.
---------------------------------------------------------------------------
           Restructuring and shrinking the agency: Mr. 
        Mulvaney undermined the roles of several established 
        offices that previously led the Consumer Bureau's 
        efforts to better protect and empower vulnerable 
        consumers, such as by folding the only unit in the 
        federal government solely dedicated to protecting 
        student loan borrowers from predatory actors into a 
        broader financial education office, seriously 
        undermining efforts to address student debt, as 
        discussed further below. In addition, the Consumer 
        Bureau's workforce was reduced by more than 10 percent 
        during Mr. Mulvaney's tenure of 13 months.
           Weakening fair lending enforcement: One of 
        those harmful structural changes significantly weakened 
        fair lending enforcement being conducted by the 
        Consumer Bureau, when Mr. Mulvaney stripped the Office 
        of Fair Lending and Equal Opportunity of its 
        supervisory and enforcement powers. Furthermore, the 
        Committee finds it troubling that Mr. Mulvaney would 
        hire, and Director Kraninger would continue to retain, 
        an individual entrusted with overseeing the Consumer 
        Bureau's supervision, enforcement, and fair lending 
        work whose past racist writings suggest at best a 
        significant lack of understanding of the issue and 
        work.
           Renaming the agency to diminish its stature: 
        Mr. Mulvaney directed the renaming of the agency, 
        presumably in an attempt to reduce the public's 
        awareness of the agency's role as the top Federal 
        consumer watchdog. In addition to creating confusion 
        for the public and costing taxpayers' money, this 
        ideologically-driven step would burden financial 
        institutions. It has been reported that a Consumer 
        Bureau analysis has suggested renaming the agency would 
        cost the financial industry hundreds of millions of 
        dollars.
           Eliminating coordination with other 
        agencies: The Secretary of Education, Betsy Devos, 
        unilaterally rescinded agreements to cooperate with the 
        Consumer Bureau in overseeing student lenders. While 
        former Director Cordray made efforts to resurrect these 
        agreements to promote consistent regulatory treatment 
        of consumer financial and investment products and 
        services, as the law requires, it is unclear to the 
        Committee that Mr. Mulvaney or Director Kraninger have 
        made any such efforts. A lack of coordination between 
        the agencies increases gaps in oversight, resulting in 
        harmed students not have their full protections under 
        the law enforced by the federal government.
           Blocking payday loan cases: The Committee is 
        concerned with how an enforcement action against four 
        payday lenders who had allegedly misled customers and 
        charged exorbitantly high interest rates close to 1,000 
        percent was dismissed during Mr. Mulvaney's tenure.
           Dismantling protections for active-duty 
        servicemembers and their families: Contrary to the 
        Consumer Bureau's duty under the law, the agency, under 
        Mr. Mulvaney's direction and continued by Director 
        Kraninger, eliminated routine supervisory exams for 
        compliance with the Military Lending Act (MLA), which, 
        as discussed more fully below, undermines protections 
        for active-duty servicemembers.
           Attempting to hide the consumer complaint 
        database: Mr. Mulvaney reportedly explored ways to take 
        the transparent and highly effective consumer complaint 
        database offline, hiding from the public and state law 
        enforcement agencies more than a million consumer 
        complaints about financial institutions' misdeeds. 
        While Director Kraninger has acknowledged the database 
        supported the Consumer Bureau's mission, she 
        unfortunately has not ruled out the possibility of 
        making it private.\3\
---------------------------------------------------------------------------
    \3\ Peter Schroeer and Katanga Johnson, ``New U.S. consumer 
watchdog chief to continue review of complaints database, fair 
lending,'' Reuters (April 18, 2019), available at: https://
www.reuters.com/article/us-usa-cfpb-interview-exclusive/exclusive-new-
u-s-consumer-watchdog-chief-to-continue-review-of-complaints-database-
fair-lending-idUSKCN1RU244.
---------------------------------------------------------------------------
           Ignoring and effectively terminating the 
        Consumer Advisory Board (CAB): Mr. Mulvaney ignored 
        statutory requirements to meet with CAB members twice a 
        year and effectively terminated this panel of outside 
        experts that provided useful feedback for years on the 
        agency's work. He also barred their future 
        participation in the CAB to express their views to the 
        Consumer Bureau.
           Failing to penalize bad actors: In Mr. 
        Mulvaney's final days, the Consumer Bureau settled with 
        a large financial firm that allegedly violated the law 
        by improperly obtaining consumer reports and providing 
        credit bureaus with inaccurate information without 
        imposing any civil money penalty.
    These are a sample of the many troubling actions by the 
Consumer Bureau since November 2017, largely under Mr. 
Mulvaney's leadership, which ended in December 2018. The 
Committee is deeply disturbed by these actions, and the fact 
that Mr. Mulvaney appeared to be carrying out the Trump 
Administration's ambition to undermine the Consumer Bureau. 
According to one anonymous White House advisor who was quoted 
describing Mr. Mulvaney's tenure running the Consumer Bureau in 
a July 2018, Politico article, ``His mission was to blow that 
up, which he has. He is very well-suited to the chaos.''\4\
---------------------------------------------------------------------------
    \4\ Nancy Cook, ```What do we think about Mick?': Trump narrows 
down chief search,'' Politico (July 24, 2018), available at: https://
www.politico.com/story/2018/07/24/trump-mulvaney-ayers-chief-739543.
---------------------------------------------------------------------------
    The most recent numbers provided by the Consumer Bureau 
indicate there has been a significant drop in public 
enforcement actions. In 2018, the Consumer Bureau took only 11 
public enforcement actions. This compares with 54 enforcement 
actions taken by the agency in 2015, 42 enforcement actions in 
2016 and 36 enforcement actions in 2017.\5\ With respect to 
fair lending, the Consumer Bureau's Semi-Annual Report to 
Congress for Spring 2018 reported only one instance of a public 
enforcement action regarding fair lending, which involved 
credit card discrimination by American Express and was brought 
during Director Cordray's tenure. The Fall 2018 Semi-Annual 
Report reported no public fair lending enforcement actions 
during the covered April-September 2018 period, despite issuing 
a higher number of supervisory actions against institutions.\6\
---------------------------------------------------------------------------
    \5\ Consumer Bureau, ``Enforcement actions,'' available at: https:/
/www.consumerfinance.gov/policy-compliance/enforcement/actions/.
    \6\ See Consumer Bureau, ``Spring 2018 Semi-Annual Report of the 
Bureau of Consumer Financial Protection Bureau,'' (Nov. 9, 2018), 
available at: https://s3.amazonaws.com/files.consumerfinance.gov/f/
documents/bcfp_semi-annual-report-to-congress_spring-2018.pdf; and 
Consumer Bureau, ``Fall 2018 Semi-Annual Report of the Bureau of 
Consumer Financial Protection,'' (Feb. 12, 2019), available at: https:/
/s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_semi-
annual-report-to-congress_fall-2018.pdf.
---------------------------------------------------------------------------

Protecting servicemembers

    Eliminating routine supervisory exams for compliance with 
the Military Lending Act is of particular concern to the 
Committee. These MLA examinations can help identify any 
violations of consumer protections active-duty servicemembers 
should be able count on. In January 2019, Director Kraninger 
decided to continue Mr. Mulvaney's flawed policy and wrote a 
letter to Congress requesting that Congress grant ``clear 
authority'' for the Consumer Bureau to examine lenders for MLA 
Compliance. However, Congress has already granted clear 
authority for the Consumer Bureau to supervise lenders for 
compliance with the MLA, and the agency is willfully neglecting 
its duties by not supervising lenders and protecting this 
nation's servicemembers.
    Suspending MLA compliance examinations is contrary to 
established procedures and practices previously conducted by 
the Consumer Bureau. According to legal analysis from a former 
Consumer Bureau senior counsel: (1) the Military Lending Act, 
as amended by the National Defense Authorization Act for Fiscal 
Year 2013 that granted the Consumer Bureau authority in this 
space, requires the Consumer Bureau to enforce the MLA the same 
way that the Consumer Bureau enforces the Truth in Lending Act 
(TILA) and expressly directs the Consumer Bureau to use ``any 
other applicable authorities available'' to protect 
servicemembers; (2) federal law directs the Consumer Bureau to 
``obtain information'' about ``compliance systems or 
procedures'' of large banks and payday lenders covered by the 
MLA; (3) under Dodd-Frank, the CFPB can cover MLA violations 
within its exams for the purpose of ``detecting and assessing 
risks'' to consumers; and, (4) any MLA violation renders a 
service members' loan void, thereby triggering a concurrent 
violation of federal consumer financial laws under the Consumer 
Bureau's supervisory jurisdiction.\7\
---------------------------------------------------------------------------
    \7\This analysis is consistent with the views of other officials 
and numerous interested organizations. In October 2018, a bipartisan 
coalition of 33 state Attorneys General came to a similar conclusion in 
writing Mr. Mulvaney to resume MLA supervision. See North Carolina 
Attorney General Press Release, ``Attorney General Josh Stein Leads 
Coalition to Urge CFPB to Protect Military Servicemembers from 
Financial Exploitation,'' (Oct. 23, 2018), available at: https://
www.ncdoj.gov/News-and-Alerts/News-Releases-and-Advisories/Attorney-
General-Josh-Stein-Leads-Coalition-to-(1).aspx. Retired Army Colonel 
Paul Kantwill, who previously ran the Consumer Bureau's Office of 
Servicemember Affairs, wrote that the policy to not conduct MLA exams 
is, ``akin to removing your sentries from guarding posts on military 
compounds. It will result in the bad guys getting in.'' See Army Col. 
Paul Kantwill (Ret.), ``Commentary: Feds moving in wrong (and 
dangerous) direction on military consumer protection,'' Military Times 
(Sep. 5, 2018), available at: https://www.militarytimes.com/opinion/
commentary/2018/09/05/commentary-feds-moving-in-wrong-and-dangerous-
direction-on-military-consumer-protection/. In August 2018, leaders of 
38 military and veteran service organizations wrote two separate 
letters with the same content to Mr. Mulvaney and then Defense 
Secretary James Mattis, asking that, ``We urge you to stand with our 
military and against any attempt to weaken the Military Lending Act, 
including through the Bureau's supervisory and enforcement authority.'' 
See Karen Jowers, ``Advocates to Mattis: Don't waver in protecting 
troops against predatory lenders,'' Military Times (Aug. 23, 2018), 
available at: https://www.militarytimes.com/pay-benefits/2018/08/23/
advocates-to-mattis-dont-waver-in-protecting-troops-against-predatory-
lenders/. The Consumer Bureau's own legal analysis, provided by 
Director Kraninger in a March 8, 2019, letter to Senators Jack Reed and 
Sherrod Brown, likewise concedes there is a clear interpretation of the 
law where the Bureau may examine its regulated entities for compliance 
with MLA.
---------------------------------------------------------------------------

Protecting student borrowers

    On August 27, 2018, Seth Frotman, then the Assistant 
Director and Student Loan Ombudsman, wrote a scathing 
resignation letter to Mr. Mulvaney, highlighting that the 
changes made under Mr. Mulvaney's leadership were undercutting 
enforcement of the law, undermining the Consumer Bureau's 
independence, and shielding bad actors from scrutiny. He wrote, 
``For example, late last year, when new evidence came to light 
showing that the nation's largest banks were ripping off 
students on campuses across the country by saddling them with 
legally dubious account fees, Bureau leadership suppressed the 
publication of a report prepared by Bureau staff. When pressed 
by Congress about this, you chose to leave students vulnerable 
to predatory practices and deny any responsibility to bring 
this information to light.''\8\ Mr. Frotman provided testimony 
to the Committee in March 2019, and observed, ``Perhaps most 
disconcerting is that, in the last 15 months, it is impossible 
to cite a single significant or substantial action that the 
Bureau has initiated on behalf of the 44 million student loan 
borrowers in this country.'' It was only through a Freedom of 
Information Act request from media that eventually uncovered 
this suppressed report in December 2018, which showed that 
Wells Fargo charged college students fees that were on average 
several times higher than some of its competitors.
---------------------------------------------------------------------------
    \8\ See supra note 2.
---------------------------------------------------------------------------
    Furthermore, the Committee is concerned about a growing 
crisis related to student loan borrowers. 44 million Americans 
collectively owe more than $1.5 trillion in student loan debt. 
Last year, over a million borrowers defaulted on their student 
loan, and today, more than eight million student loan borrowers 
are in default. According to research from the Federal Reserve 
and other organizations, there is increasing evidence that 
student debt is hindering homeownership and are creating other 
barriers to economic mobility. Rising student debt levels 
resulted in almost half a million fewer homes purchased by 
millennials over the last 15 years. Student loan borrowers need 
a Consumer Bureau that will focus on their unique challenges.

Correcting the past through reform

    As was the case prior to the financial crisis a decade ago, 
laws are meaningless when they are not enforced, and consumers 
are left to fend for themselves when their government will not 
protect them. Congress specifically designed the Consumer 
Bureau to protect hardworking Americans from unfair, deceptive 
or abusive acts and practices in the financial marketplace.
    The Consumers First Act seeks to ensure the agency resumes 
carrying out its mandates and mission to better protect 
consumers in a manner consistent with the law that established 
the agency. H.R. 1500 seeks to block the Trump Administration's 
anti-consumer agenda and reverse its past efforts, largely 
under the direction of Mr. Mulvaney, to undermine the mission 
of the Consumer Bureau. The bill, among other things, provides 
that the new Consumer Bureau leadership should reverse all 
anti-consumer actions taken under Mr. Mulvaney's leadership, 
including providing that the agency should immediately resume 
Military Lending Act examinations.
    H.R. 1500 would also restore the supervisory and 
enforcement powers of the Office of Fair Lending and Equal 
Opportunity (OFLEO), reestablish a dedicated student loan 
office, require adequate agency staffing to carry out its 
mandates, including for supervision and enforcement, and limit 
the number of political appointees the Consumer Bureau may hire 
to address allegations that President Trump's appointees 
politicized and suppressed the work of dedicated, professional 
staff.
    Furthermore, H.R. 1500 mandates that the consumer complaint 
database remain transparent and publicly accessible, reinstates 
the Consumer Advisory Board that was effectively terminated by 
Mr. Mulvaney with new protections to ensure consumer voices are 
well represented, and that diversity and inclusion are promoted 
on the agency's advisory boards, and requires more reporting 
about and encourage greater cooperation by the agency with 
other government agencies, like the U.S. Departments of 
Education and Defense.

Strengthening advisory boards

    In June 2018, Mr. Mulvaney effectively terminated the 25 
members of the Consumer Advisory Board. Legally required 
meetings with the group were canceled. Mr. Mulvaney also 
disbanded the Community Bank Advisory Council and the Credit 
Union Advisory Council. Mr. Mulvaney subsequently dramatically 
shrank the size of the CAB to a nine-member panel, 
substantially limiting valuable input the agency received from 
a wide range of perspectives.
    Director Kraninger made some changes in March 2019, 
allowing advisory board members to serve for a longer period 
than Mr. Mulvaney proposed, and increasing the number of in 
person meetings from two to three times a year. However, these 
changes are insufficient to ensure the Consumer Bureau hears 
regularly from not just industry, but consumer perspectives as 
well. The Committee also believes that it is imperative that 
the Consumer Bureau prioritizes diversity and inclusion in 
selecting members for all of its advisory boards.
    The Consumers First Act would restore the size of the CAB, 
and it stipulates that meetings must be in person. The 
legislation also ensures that consumer perspectives must be 
appropriately represented on all of its advisory boards. 
Finally, he Committee is also committed to promoting diversity 
and inclusion regarding which stakeholders the Consumer Bureau 
consults with. The bill stipulates that, ``the Director shall 
seek to promote diversity and inclusion in making appointments, 
including by appointing individuals who represent minority-
owned and women-owned businesses.''

Fully accountable Consumer Bureau

    During consideration of H.R. 1500, the Committee rejected 
several amendments which would have significantly undermined 
the Consumer Bureau's effectiveness under the guise of 
establishing accountability. However, the Committee would like 
to highlight several facts and considerations. Like other 
Federal agencies, the Consumer Bureau is subject to various 
reporting requirements, as well as oversight by the Congress, 
Government Accountability Office and an Inspector General. 
Since the Consumer Bureau is a bureau of the Federal Reserve 
System, the Federal Reserve's Inspector General oversees the 
Consumer Bureau, similar to how the Treasury Department's 
Inspector General oversees the Office of the Comptroller of the 
Currency since it is a bureau of the Treasury Department. The 
Consumer Bureau also has an independent funding mechanism apart 
from the appropriations process, similar to other Federal 
banking agencies.
    In addition, the Consumer Bureau is subject to 
extraordinary constraints and accountability measures, often 
above and beyond what all other Federal financial regulators 
are subject to. For example, the Consumer Bureau's Director 
must testify before Congress twice a year (see Section 1016 of 
the Dodd-Frank Act). The leaders of the FDIC and OCC are not 
subject to any such requirement. Furthermore, the Consumer 
Bureau's rules are subject to veto by other agencies of the 
Financial Stability Oversight Council (FSOC) (see Section 1023 
of the Dodd-Frank Act). No other agency has its rules reviewed 
or subject to a veto by FSOC members. In addition, the Consumer 
Bureau is required to give small businesses a preview of new 
rulemaking proposals and receive extensive feedback from small 
businesses before even giving notice to the broader public 
under the Small Business Regulatory Enforcement Fairness Act 
(SBREFA). The Consumer Bureau must also assess possible 
increases in the cost of credit for small entities and consider 
any significant alternatives that could minimize those costs 
(see Section 1100G of the Dodd-Frank Act). No other financial 
regulator must comply with these mandates.
    Furthermore, while some continue to attack the Consumer 
Bureau, the D.C. Circuit Court of Appeals upheld the Consumer 
Bureau's leadership structure as completely constitutional in 
the matter of PHH Corporation, et al., v. Consumer Financial 
Protection Bureau.\9\ As legal experts from the Constitutional 
Accountability Center have explained, ``Since the CFPB's 
creation, opponents of financial regulation have sought to 
weaken the Bureau's ability to protect the interests of 
consumers, pursuing their agenda through both legislation and 
litigation. In particular, financial institutions have 
challenged the Bureau's constitutionality on the ground that 
its structure and authorities violate the Constitution's 
separation of powers . . . [these] arguments against its 
constitutionality are all without merit. . . . The Bureau's 
combination of powers and organizational structure clearly 
passes constitutional muster under a separation-of-powers 
analysis, and statutory requirements go even further, ensuring 
that the Bureau is responsive, accountable, and transparent to 
political representatives and the public.''
---------------------------------------------------------------------------
    \9\___ F.3d ___, No. 15-1177, 2018 WL 627055 (D.C. Cir. Jan. 31, 
2018), available at: https://www.cadc.uscourts.gov/internet/
opinions.nsf/B7623651686D60D585258226005405AC/$file/15-1177.pdf.
---------------------------------------------------------------------------

Conclusion

    As described above and outlined in the Consumers First Act, 
Mr. Mulvaney stripped the Consumer Bureau's Office of Fair 
Lending of its ability to supervise and enforce fair lending 
laws, closed the Office of Students and Young Consumers, turned 
a blind eye to uncovering abuse of active-duty servicemembers 
and their families, and effectively terminated the Consumer 
Bureau's Consumer Advisory Board. His mission was to dismantle 
the agency from within and he left behind no less than 12 
political appointees of the Trump Administration, who have, 
among other things, allegedly suppressed reports from 
professional Consumer Bureau staff about Wells Fargo and other 
banks ripping off student borrowers. The Trump Administration 
has worked hard to undermine the Consumer Financial Protection 
Bureau. The Consumers First Act, which is supported by over 50 
consumer, civil rights, housing and labor organizations,\10\ 
would reverse this anti-consumer agenda, and it would return 
the agency to its non-partisan mission of protecting consumers.
---------------------------------------------------------------------------
    \10\These include Americans for Financial Reform, Allied Progress, 
Adelante Mujeres, California Reinvestment Coalition, Center for New 
York City Neighborhoods, Center for Global Policy Solutions, Center for 
Popular Democracy, Center for Responsible Lending, Communications 
Workers of America (CWA), Connecticut Fair Housing Center, Consumer 
Action, Consumer Federation of America, CREDO, Demos, Empire Justice 
Center, Florida Alliance for Consumer Protection, HomeSmartNY, Main 
Street Alliance, MERIT (Micro Enterprise Resources Initiatives & 
Training), Mobilization for Justice, NAACP, National Association of 
Consumer Advocates, National Association for Latino Community Asset 
Builders, National CAPACD, National Center for Law and Economic 
Justice, National Community Reinvestment Coalition (NCRC), National 
Community Stabilization Trust, National Consumer Law Center (on behalf 
of its low income clients), National Consumers League, National Fair 
Housing Alliance, New Jersey Citizen Action, Policy Matters Ohio, 
PolicyLink, Prosperity Now, Public Citizen, Public Good Law Center, 
Public Justice Center, Reinvestment Partners, Revolving Door Project, 
Tennessee Citizen Action, Texas Appleseed, The Greenlining Institute, 
The Leadership Conference on Civil and Human Rights, The National 
Council of Asian Pacific Americans (NCAPA), Tzedek DC, U.S. PIRG, 
UnidosUS (formerly the National Council of La Raza), Ventures, Virginia 
Citizens Consumer Council, Virginia Poverty Law Center, and Woodstock 
Institute.
---------------------------------------------------------------------------

                      Section-by-Section Analysis


Section 1. Short title

    Consumers First Act.

Section 2. Findings and Sense of Congress

    This section lays out a series of congressional findings 
describing the rationale behind the creation of the strong, 
independent Consumer Bureau, to, among other things, combat 
predatory consumer financial products and practices that 
contributed to the global financial crisis a decade ago. The 
findings identify a set of actions taken by former interim 
Director Mick Mulvaney after Director Cordray resigned in 
November 2017. The section also details why the Consumer Bureau 
must meet its statutory purpose and mandates. The section also 
provides a Sense of Congress establishing actions that the 
Consumer Bureau must take to return to its core mission of 
protecting consumers, including directing the Consumer Bureau 
to immediately resume MLA exams. The Committee expresses a 
clear and an unambiguous view that the Consumer Bureau must 
cease being derelict in its duties and resume MLA examinations 
at once for the benefit of active-duty servicemembers and their 
families.

Section 3. Codify the name of the Consumer Financial Protection Bureau

    This section would codify the well-known name of the 
Consumer Financial Protection Bureau to reverse Mr. Mulvaney's 
prior efforts, and any future effort, to diminish and obscure 
the identity of this Federal consumer-focused watchdog by using 
the name ``Bureau of Consumer Financial Protection Bureau or 
BCFP.'' An internal Consumer Bureau estimate concluded that Mr. 
Mulvaney's rebranding efforts would cost the industry $300 
million. While Director Kraninger has signaled a reversal in 
the decision to rebrand the agency, she has stated that she may 
continue to use both names, which the Committee is concerned 
would continue to cause confusion.

Section 4. Conforming amendments

    This section further codifies the name of the Consumer 
Financial Protection Bureau throughout various statutes.

Section 5. Executive and administration powers

    This section would reverse structural changes made by 
Mulvaney to diminish the responsibilities of several offices, 
including the Office of Fair Lending and Equal Opportunity. The 
bill includes several structural protections, including 
requiring adequate staffing of these offices, limiting the 
number of political appointees that can politicize the work of 
career staff, and ensuring the public consumer complaint 
database remains available to the public. The bill would also 
require more transparency about the Memorandums of 
Understanding the Consumer Bureau utilizes to ensure it is 
fully coordinating with other Federal agencies, such as the 
Department of Education. Moreover, the Committee is concerned 
about comments made by Director Kathy Kraninger at a hearing 
held by the Committee in March 2018, and subsequent remarks she 
has made, that appear to deemphasize the importance of strong 
enforcement. The Committee strongly urges the Consumer Bureau 
to utilize all available resources and the staffing required by 
this section to take its obligations to enforce the law 
seriously, and to not exhibit any fear or favor of any 
financial firm that breaks the law.

Section 6. Offices of the Consumer Financial Protection Bureau

    This section clarifies OFLEO's supervisory and enforcement 
authority with respect to fair lending laws. It also restores 
the Office of Students and Young Consumers, by formalizing its 
role in the agency's regulatory, supervisory, and enforcement 
work on student and young consumer issues. This section also 
would require additional reporting on the work of the Consumer 
Bureau to fulfill all of its mandates, and it would limit the 
ability of the Director to use cost-benefit analysis to weaken 
supervisory or enforcement efforts.

Section 7. Consumer Advisory Board reforms

    This section would reinstate the members of the Consumer 
Advisory Board (CAB) that were effectively terminated by 
Mulvaney, and it would allow them to continue to serve out 
their original terms until 2020 without threat of arbitrary 
removal. The section requires in-person meetings of the CAB 
with the Director and Consumer Bureau staff, providing 
opportunity for CAB members to engage with all appropriate 
staff and offices of the Consumer Bureau. This section also 
promotes a consideration of diverse candidates to the Consumer 
Bureau's advisory boards, and it ensures consumer perspectives 
will be well represented on the CAB and other advisory boards.

Section 8. Effective date

    The Director must implement all structural changes required 
by the bill within 30 days.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 for the 
116th Congress--
    (1) The Committee on Financial Services held a hearing to 
consider a discussion draft of H.R. 1500 entitled ``Putting 
Consumers First? A Semi-Annual Review of the Consumer Financial 
Protection Bureau'' on March 7, 2019. Testifying on the first 
panel was the Honorable Kathy Kraninger, Director, Consumer 
Financial Protection Bureau, where she discussed the Consumer 
Bureau's Spring 2018 Semi-Annual Report to Congress. Testifying 
on the second panel was: Mr. Hilary Shelton, Director & Senior 
Vice President for Advocacy and Policy, National Association 
for the Advancement of Colored People; Ms. Linda Jun, Senior 
Policy Counsel, Americans for Financial Reform; Ms. Jennifer 
Davis, Government Relations Deputy Director, National Military 
Family Association; Mr. Seth Frotman, Executive Director, 
Student Borrower Protection Center; and Mr. Scott Weltman, 
Managing Shareholder, Weltman, Weinberg & Reis Co., L.P.A.
    (2) In addition, the following related hearings were held--
          a. The Committee held a hearing entitled, ``Who's 
        Keeping Score? Holding Credit Bureaus Accountable and 
        Repairing a Broken System,'' on February 26, 2019. 
        Testifying on the first panel was: Mr. Mark Begor, CEO, 
        Equifax; Mr. James M. Peck, President and CEO, 
        TransUnion; and Mr. Craig Boundy, CEO, Experian North 
        America. Testifying on the second panel was: Ms. Lisa 
        Rice, President and CEO, National Fair Housing Alliance 
        (NFHA); Ms. Chi Wu, Staff Attorney, National Consumer 
        Law Center (NCLC); Ms. Jennifer Brown, Associate 
        Director, Economic Policy, UnidosUS; Mr. Edmund 
        Mierzwinski, Consumer Program Director, U.S. Public 
        Interest Research Group (PIRG); and Mr. Thomas P. 
        Brown, Partner, Paul Hastings.
          b. The Committee held a hearing entitled, ``Holding 
        Megabanks Accountable: An Examination of Wells Fargo's 
        Pattern of Consumer Abuses,'' on March 12, 2019. 
        Testifying was Timothy J. Sloan, President and Chief 
        Executive Officer of Wells Fargo & Company.
          c. The Committee held a hearing entitled, ``Holding 
        Megabanks Accountable: A Review of Global Systemically 
        Important Banks 10 years after the Financial Crisis,'' 
        on April 10, 2019. Testifying on a single-panel was: 
        Mr. Michael L. Corbat, Chief Executive Officer, 
        Citigroup; Mr. James Dimon, Chairman & Chief Executive 
        Officer, JP Morgan Chase & Co.; Mr. James P. Gorman, 
        Chairman & Chief Executive Officer, Morgan Stanley; Mr. 
        Brian T. Moynihan, Chairman & Chief Executive Officer, 
        Bank of America; Mr. Ronald P. O'Hanley, President & 
        Chief Executive Officer, State Street Corporation; Mr. 
        Charles W. Scharf, Chairman & Chief Executive Officer, 
        Bank of New York Mellon; and Mr. David M. Solomon, 
        Chairman & Chief Executive Officer, Goldman Sachs.
          d. In the 115th Congress, the Committee held a 
        hearing entitled ``A Legislative Proposal to Create 
        Hope and Opportunity for Investors, Consumers and 
        Entrepreneurs,'' on April 26 and April 28, 2017. 
        Testifying were Mr. Peter J. Wallison, Senior Fellow 
        and Arthur F. Burn Fellow, Financial Policy Studies, 
        American Enterprise Institute; Dr. Norbert J. Michel, 
        Senior Research Fellow, Financial Regulations and 
        Monetary Policy, The Heritage Foundation; The Honorable 
        Michael S. Barr, Professor of Law, University of 
        Michigan Law School; Mr. Alex J. Pollock, Distinguished 
        Senior Fellow, The R Street Institute; Ms. Lisa D. 
        Cook, Associate Professor, Economics and International 
        Relations, Michigan State University; Ms. Hester 
        Peirce, Director, Financial Markets Working Group and 
        Senior Research Fellow, Mercatus Center, George Mason 
        University; Mr. John Allison, Former President and 
        Chief Executive Officer, Cato Institute; the Honorable 
        Elizabeth Warren, United States Senator; Rohit Chopra, 
        Senior Fellow, Consumer Federation of America; Corey 
        Klemmer, Corporate Research Analyst, Office of 
        Investment, AFL-CIO; Rev. Willie Gable, Pastor, 
        National Baptist Convention USA, Inc.; John C. Coffee 
        Jr., Adolf A. Berle Professor of Law, Columbia 
        University; Rob Randhava, Senior Counsel, Leadership 
        Conference on Civil and Human Rights; Melanie Lubin, 
        Maryland Securities Commissioner, North American 
        Securities Administrators Association; Emily Liner, 
        Senior Policy Advisor, Economic Program, Third Way; 
        Amanda Jackson, Organizing and Outreach Manager, 
        Americans for Financial Reform; Ken Bertsch, Executive 
        Director, Council of Institutional Investors; and Sarah 
        Edelman, Director, Housing Policy, Center for American 
        Progress (CAP).
          e. In the 115th Congress, the Committee held a 
        hearing entitled, ``The Semi-Annual Report on the 
        Bureau of Consumer Financial Protection,'' on April 11, 
        2018. Testifying was the Honorable Mick Mulvany, 
        Director of the Office of Management and Budget and 
        Acting Director of the Bureau.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
March 26-28, 2019, and ordered H.R. 1500 to be reported 
favorably to the House with an amendment in the nature of a 
substitute by a recorded vote of 34 yeas and 26 nays, a quorum 
being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 1500:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. 1500 are to ensure 
that the Consumer Finance Protection Bureau returns to its 
central mission of protecting consumers from predatory 
practices by financial institutions

               New Budget Authority and CBO Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following estimate for 
H.R. 1500 from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 8, 2019.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1500, Consumers 
First Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Hughes.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    H.R. 1500 would impose several requirements on the Consumer 
Financial Protection Bureau (CFPB). Specifically, the bill 
would:
           Make fair lending supervision and 
        enforcement by the CFPB's Office of Fair Lending and 
        Equal Opportunity (OFLEO) a statutory requirement;
           Require the CFPB to establish an Office of 
        Students and Young Consumers (OSYC) that would provide 
        direct assistance to the agency's units responsible for 
        supervising, enforcing, and regulating the nonfederal 
        student loan market;
           Require the director to appoint at least 25 
        members to the agency's Consumer Advisory Board; and
           Require the agency to report to the Congress 
        on matters such as changes to agency memorandums of 
        understanding and the number of political appointees at 
        the agency.
    The estimated budgetary effect is shown in Table 1. The 
costs of the legislation fall within budget function 370 
(commerce and housing credit).

                                             TABLE 1--ESTIMATED INCREASES IN DIRECT SPENDING UNDER H.R. 1500
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2019   2020   2021   2022   2023   2024   2025   2026   2027   2028   2029  2019-2024  2019-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Estimated Budget
    Authority........................................      0      2      2      2      2      2      2      2  .....  .....      2        10   .........
    Estimated Outlays................................      0      1      2      2      2      2      2      2  .....  .....      2         9   .........
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Using information from the CFPB about staffing levels prior 
to 2018, CBO estimates that enacting H.R. 1500 would require 
additional staff and would increase direct spending by $19 
million over the 2020-2029 period. The CFPB is permanently 
authorized to request and receive funding from the Federal 
Reserve in an amount necessary to carry out its operations.
    Under H.R. 1500, CBO expects that OFLEO would carry out 
more fair lending supervision and enforcement activities 
compared to current practice, which would require additional 
staff and lead to increased litigation costs. CBO estimates 
that the CFPB would need two additional full-time staff for the 
OFLEO activities. CBO also estimates that the CFPB would hire 
five additional full-time staff to operate the newly created 
OSYC. CBO expects that OSYC would assist in all supervisory, 
enforcement, and regulatory activities related to student 
loans.
    CBO estimates that the initial annual cost for each 
additional employee would be $200,000. After accounting for 
anticipated inflation CBO estimates that hiring additional 
staff would cost $16 million over the 2020-2029 period--$5 
million for the OFLEO and $11 million for the OSYC.
    Under the bill, the Director of the CFPB would be required 
to appoint 16 additional members to the Consumer Advisory 
Board. Currently, the board has 9 members. CBO estimates that 
supporting the additional board members would cost $3 million 
over the 2020-2029 period assuming support costs for the 
current board are expanded proportionally. Based on the costs 
of similar tasks, CBO estimates that the new reporting 
requirements to the Congress and other administrative costs 
under the bill would cost $1 million over the same period.
    The CFPB's costs under H.R. 1500 could be higher or lower 
than CBO's estimates. Under H.R. 1500, the CFPB would still 
have considerable discretion about the level of resources it 
chooses to commit to individual responsibilities.
    The CBO staff contact for this estimate is David Hughes. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 1500. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act, which is 
attached.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended), the Committee adopts as 
its own the estimate of federal mandates regarding H.R. 1500, 
as amended, prepared by the Director of the Congressional 
Budget Office.

                           Advisory Committee

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation. Section 7 of H.R. 1500 does amend provisions of 
existing law providing for the Consumer Advisory Board but does 
not create a new advisory board.

              Application of Law to the Legislative Branch

    Pursuant to section 102(b)(3) of the Congressional 
Accountability Act, Pub. L. No. 104-1 H.R. 1500, as amended, 
does not apply to terms and conditions of employment or to 
access to public services or accommodations within the 
legislative branch.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 1500 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 1500 establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 7, as reported, are shown as follows:

       400.Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

       DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Dodd-Frank 
Wall Street Reform and Consumer Protection Act''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *

 TITLE X--[BUREAU OF CONSUMER FINANCIAL PROTECTION] CONSUMER FINANCIAL 
                            PROTECTION BUREAU

     * * * * * * *

                 Subtitle C--Specific Bureau Authorities

     * * * * * * *
Sec. 1035. [Private education] Assistant director and student loan 
          ombudsman.
     * * * * * * *

SEC. 2. DEFINITIONS.

  As used in this Act, the following definitions shall apply, 
except as the context otherwise requires or as otherwise 
specifically provided in this Act:
          (1) Affiliate.--The term ``affiliate'' has the same 
        meaning as in section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813).
          (2) Appropriate federal banking agency.--On and after 
        the transfer date, the term ``appropriate Federal 
        banking agency'' has the same meaning as in section 
        3(q) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(q)), as amended by title III.
          (3) Board of governors.--The term ``Board of 
        Governors'' means the Board of Governors of the Federal 
        Reserve System.
          (4) Bureau.--The term ``Bureau'' means the [Bureau of 
        Consumer Financial Protection] Consumer Financial 
        Protection Bureau established under title X.
          (5) Commission.--The term ``Commission'' means the 
        Securities and Exchange Commission, except in the 
        context of the Commodity Futures Trading Commission.
          (6) Commodity futures terms.--The terms ``futures 
        commission merchant'', ``swap'', ``swap dealer'', 
        ``swap execution facility'', ``derivatives clearing 
        organization'', ``board of trade'', ``commodity trading 
        advisor'', ``commodity pool'', and ``commodity pool 
        operator'' have the same meanings as given the terms in 
        section 1a of the Commodity Exchange Act (7 U.S.C. 1 et 
        seq.).
          (7) Corporation.--The term ``Corporation'' means the 
        Federal Deposit Insurance Corporation.
          (8) Council.--The term ``Council'' means the 
        Financial Stability Oversight Council established under 
        title I.
          (9) Credit union.--The term ``credit union'' means a 
        Federal credit union, State credit union, or State-
        chartered credit union, as those terms are defined in 
        section 101 of the Federal Credit Union Act (12 U.S.C. 
        1752).
          (10) Federal banking agency.--The term--
                  (A) ``Federal banking agency'' means, 
                individually, the Board of Governors, the 
                Office of the Comptroller of the Currency, and 
                the Corporation; and
                  (B) ``Federal banking agencies'' means all of 
                the agencies referred to in subparagraph (A), 
                collectively.
          (11) Functionally regulated subsidiary.--The term 
        ``functionally regulated subsidiary'' has the same 
        meaning as in section 5(c)(5) of the Bank Holding 
        Company Act of 1956 (12 U.S.C. 1844(c)(5)).
          (12) Primary financial regulatory agency.--The term 
        ``primary financial regulatory agency'' means--
                  (A) the appropriate Federal banking agency, 
                with respect to institutions described in 
                section 3(q) of the Federal Deposit Insurance 
                Act, except to the extent that an institution 
                is or the activities of an institution are 
                otherwise described in subparagraph (B), (C), 
                (D), or (E);
                  (B) the Securities and Exchange Commission, 
                with respect to--
                          (i) any broker or dealer that is 
                        registered with the Commission under 
                        the Securities Exchange Act of 1934, 
                        with respect to the activities of the 
                        broker or dealer that require the 
                        broker or dealer to be registered under 
                        that Act;
                          (ii) any investment company that is 
                        registered with the Commission under 
                        the Investment Company Act of 1940, 
                        with respect to the activities of the 
                        investment company that require the 
                        investment company to be registered 
                        under that Act;
                          (iii) any investment adviser that is 
                        registered with the Commission under 
                        the Investment Advisers Act of 1940, 
                        with respect to the investment advisory 
                        activities of such company and 
                        activities that are incidental to such 
                        advisory activities;
                          (iv) any clearing agency registered 
                        with the Commission under the 
                        Securities Exchange Act of 1934, with 
                        respect to the activities of the 
                        clearing agency that require the agency 
                        to be registered under such Act;
                          (v) any nationally recognized 
                        statistical rating organization 
                        registered with the Commission under 
                        the Securities Exchange Act of 1934;
                          (vi) any transfer agent registered 
                        with the Commission under the 
                        Securities Exchange Act of 1934;
                          (vii) any exchange registered as a 
                        national securities exchange with the 
                        Commission under the Securities 
                        Exchange Act of 1934;
                          (viii) any national securities 
                        association registered with the 
                        Commission under the Securities 
                        Exchange Act of 1934;
                          (ix) any securities information 
                        processor registered with the 
                        Commission under the Securities 
                        Exchange Act of 1934;
                          (x) the Municipal Securities 
                        Rulemaking Board established under the 
                        Securities Exchange Act of 1934;
                          (xi) the Public Company Accounting 
                        Oversight Board established under the 
                        Sarbanes-Oxley Act of 2002 (15 U.S.C. 
                        7211 et seq.);
                          (xii) the Securities Investor 
                        Protection Corporation established 
                        under the Securities Investor 
                        Protection Act of 1970 (15 U.S.C. 78aaa 
                        et seq.); and
                          (xiii) any security-based swap 
                        execution facility, security-based swap 
                        data repository, security-based swap 
                        dealer or major security-based swap 
                        participant registered with the 
                        Commission under the Securities 
                        Exchange Act of 1934, with respect to 
                        the security-based swap activities of 
                        the person that require such person to 
                        be registered under such Act;
                  (C) the Commodity Futures Trading Commission, 
                with respect to--
                          (i) any futures commission merchant 
                        registered with the Commodity Futures 
                        Trading Commission under the Commodity 
                        Exchange Act (7 U.S.C. 1 et seq.), with 
                        respect to the activities of the 
                        futures commission merchant that 
                        require the futures commission merchant 
                        to be registered under that Act;
                          (ii) any commodity pool operator 
                        registered with the Commodity Futures 
                        Trading Commission under the Commodity 
                        Exchange Act (7 U.S.C. 1 et seq.), with 
                        respect to the activities of the 
                        commodity pool operator that require 
                        the commodity pool operator to be 
                        registered under that Act, or a 
                        commodity pool, as defined in that Act;
                          (iii) any commodity trading advisor 
                        or introducing broker registered with 
                        the Commodity Futures Trading 
                        Commission under the Commodity Exchange 
                        Act (7 U.S.C. 1 et seq.), with respect 
                        to the activities of the commodity 
                        trading advisor or introducing broker 
                        that require the commodity trading 
                        adviser or introducing broker to be 
                        registered under that Act;
                          (iv) any derivatives clearing 
                        organization registered with the 
                        Commodity Futures Trading Commission 
                        under the Commodity Exchange Act (7 
                        U.S.C. 1 et seq.), with respect to the 
                        activities of the derivatives clearing 
                        organization that require the 
                        derivatives clearing organization to be 
                        registered under that Act;
                          (v) any board of trade designated as 
                        a contract market by the Commodity 
                        Futures Trading Commission under the 
                        Commodity Exchange Act (7 U.S.C. 1 et 
                        seq.);
                          (vi) any futures association 
                        registered with the Commodity Futures 
                        Trading Commission under the Commodity 
                        Exchange Act (7 U.S.C. 1 et seq.);
                          (vii) any retail foreign exchange 
                        dealer registered with the Commodity 
                        Futures Trading Commission under the 
                        Commodity Exchange Act (7 U.S.C. 1 et 
                        seq.), with respect to the activities 
                        of the retail foreign exchange dealer 
                        that require the retail foreign 
                        exchange dealer to be registered under 
                        that Act;
                          (viii) any swap execution facility, 
                        swap data repository, swap dealer, or 
                        major swap participant registered with 
                        the Commodity Futures Trading 
                        Commission under the Commodity Exchange 
                        Act (7 U.S.C. 1 et seq.) with respect 
                        to the swap activities of the person 
                        that require such person to be 
                        registered under that Act; and
                          (ix) any registered entity under the 
                        Commodity Exchange Act (7 U.S.C. 1 et 
                        seq.), with respect to the activities 
                        of the registered entity that require 
                        the registered entity to be registered 
                        under that Act;
                  (D) the State insurance authority of the 
                State in which an insurance company is 
                domiciled, with respect to the insurance 
                activities and activities that are incidental 
                to such insurance activities of an insurance 
                company that is subject to supervision by the 
                State insurance authority under State insurance 
                law; and
                  (E) the Federal Housing Finance Agency, with 
                respect to Federal Home Loan Banks or the 
                Federal Home Loan Bank System, and with respect 
                to the Federal National Mortgage Association or 
                the Federal Home Loan Mortgage Corporation.
          (13) Prudential standards.--The term ``prudential 
        standards'' means enhanced supervision and regulatory 
        standards developed by the Board of Governors under 
        section 165.
          (14) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.
          (15) Securities terms.--The--
                  (A) terms ``broker'', ``dealer'', ``issuer'', 
                ``nationally recognized statistical rating 
                organization'', ``security'', and ``securities 
                laws'' have the same meanings as in section 3 
                of the Securities Exchange Act of 1934 (15 
                U.S.C. 78c);
                  (B) term ``investment adviser'' has the same 
                meaning as in section 202 of the Investment 
                Advisers Act of 1940 (15 U.S.C. 80b-2); and
                  (C) term ``investment company'' has the same 
                meaning as in section 3 of the Investment 
                Company Act of 1940 (15 U.S.C. 80a-3).
          (16) State.--The term ``State'' means any State, 
        commonwealth, territory, or possession of the United 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana 
        Islands, American Samoa, Guam, or the United States 
        Virgin Islands.
          (17) Transfer date.--The term ``transfer date'' means 
        the date established under section 311.
          (18) Other incorporated definitions.--
                  (A) Federal deposit insurance act.--The terms 
                ``bank'', ``bank holding company'', 
                ``control'', ``deposit'', ``depository 
                institution'', ``Federal depository 
                institution'', ``Federal savings association'', 
                ``foreign bank'', ``including'', ``insured 
                branch'', ``insured depository institution'', 
                ``national member bank'', ``national nonmember 
                bank'', ``savings association'', ``State 
                bank'', ``State depository institution'', 
                ``State member bank'', ``State nonmember 
                bank'', ``State savings association'', and 
                ``subsidiary'' have the same meanings as in 
                section 3 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1813).
                  (B) Holding companies.--The term--
                          (i) ``bank holding company'' has the 
                        same meaning as in section 2 of the 
                        Bank Holding Company Act of 1956 (12 
                        U.S.C. 1841);
                          (ii) ``financial holding company'' 
                        has the same meaning as in section 2(p) 
                        of the Bank Holding Company Act of 1956 
                        (12 U.S.C. 1841(p)); and
                          (iii) ``savings and loan holding 
                        company'' has the same meaning as in 
                        section 10 of the Home Owners' Loan Act 
                        (12 U.S.C. 1467a(a)).

           *       *       *       *       *       *       *


TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *


Subtitle B--Office of Financial Research

           *       *       *       *       *       *       *


SEC. 152. OFFICE OF FINANCIAL RESEARCH ESTABLISHED.

  (a) Establishment.--There is established within the 
Department of the Treasury the Office of Financial Research.
  (b) Director.--
          (1) In general.--The Office shall be headed by a 
        Director, who shall be appointed by the President, by 
        and with the advice and consent of the Senate.
          (2) Term of service.--The Director shall serve for a 
        term of 6 years, except that, in the event that a 
        successor is not nominated and confirmed by the end of 
        the term of service of a Director, the Director may 
        continue to serve until such time as the next Director 
        is appointed and confirmed.
          (3) Executive level.--The Director shall be 
        compensated at Level III of the Executive Schedule.
          (4) Prohibition on dual service.--The individual 
        serving in the position of Director may not, during 
        such service, also serve as the head of any financial 
        regulatory agency.
          (5) Responsibilities, duties, and authority.--The 
        Director shall have sole discretion in the manner in 
        which the Director fulfills the responsibilities and 
        duties and exercises the authorities described in this 
        subtitle.
  (c) Budget.--The Director, in consultation with the 
Chairperson, shall establish the annual budget of the Office.
  (d) Office Personnel.--
          (1) In general.--The Director, in consultation with 
        the Chairperson, may fix the number of, and appoint and 
        direct, all employees of the Office.
          (2) Compensation.--The Director, in consultation with 
        the Chairperson, shall fix, adjust, and administer the 
        pay for all employees of the Office, without regard to 
        chapter 51 or subchapter III of chapter 53 of title 5, 
        United States Code, relating to classification of 
        positions and General Schedule pay rates.
          (3) Comparability.--Section 1206(a) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 1833b(a)) is amended--
                  (A) by striking ``Finance Board,'' and 
                inserting ``Finance Board, the Office of 
                Financial Research, and the [Bureau of Consumer 
                Financial Protection] Consumer Financial 
                Protection Bureau''; and
                  (B) by striking ``and the Office of Thrift 
                Supervision,''.
          (4) Senior executives.--Section 3132(a)(1)(D) of 
        title 5, United States Code, is amended by striking 
        ``and the National Credit Union Administration;'' and 
        inserting ``the National Credit Union Administration, 
        the [Bureau of Consumer Financial Protection] Consumer 
        Financial Protection Bureau, and the Office of 
        Financial Research;''.
  (e) Assistance From Federal Agencies.--Any department or 
agency of the United States may provide to the Office and any 
special advisory, technical, or professional committees 
appointed by the Office, such services, funds, facilities, 
staff, and other support services as the Office may determine 
advisable. Any Federal Government employee may be detailed to 
the Office without reimbursement, and such detail shall be 
without interruption or loss of civil service status or 
privilege.
  (f) Procurement of Temporary and Intermittent Services.--The 
Director may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, at rates for 
individuals which do not exceed the daily equivalent of the 
annual rate of basic pay prescribed for Level V of the 
Executive Schedule under section 5316 of such title.
  (g) Post-employment Prohibitions.--The Secretary, with the 
concurrence of the Director of the Office of Government Ethics, 
shall issue regulations prohibiting the Director and any 
employee of the Office who has had access to the transaction or 
position data maintained by the Data Center or other business 
confidential information about financial entities required to 
report to the Office from being employed by or providing advice 
or consulting services to a financial company, for a period of 
1 year after last having had access in the course of official 
duties to such transaction or position data or business 
confidential information, regardless of whether that entity is 
required to report to the Office. For employees whose access to 
business confidential information was limited, the regulations 
may provide, on a case-by-case basis, for a shorter period of 
post-employment prohibition, provided that the shorter period 
does not compromise business confidential information.
  (h) Technical and Professional Advisory Committees.--The 
Office, in consultation with the Chairperson, may appoint such 
special advisory, technical, or professional committees as may 
be useful in carrying out the functions of the Office, and the 
members of such committees may be staff of the Office, or other 
persons, or both.
  (i) Fellowship Program.--The Office, in consultation with the 
Chairperson, may establish and maintain an academic and 
professional fellowship program, under which qualified 
academics and professionals shall be invited to spend not 
longer than 2 years at the Office, to perform research and to 
provide advanced training for Office personnel.
  (j) Executive Schedule Compensation.--Section 5314 of title 
5, United States Code, is amended by adding at the end the 
following new item:``Director of the Office of Financial 
Research.''.

           *       *       *       *       *       *       *


 TITLE X--[BUREAU OF CONSUMER FINANCIAL PROTECTION] CONSUMER FINANCIAL 
PROTECTION BUREAU

           *       *       *       *       *       *       *


    Subtitle A--[Bureau of Consumer Financial Protection] Consumer 
                      Financial Protection Bureau

SEC. 1001. SHORT TITLE.

  This title may be cited as the ``Consumer Financial 
Protection Act of 2010''.

           *       *       *       *       *       *       *


SEC. 1011. ESTABLISHMENT OF THE [BUREAU OF CONSUMER FINANCIAL 
                    PROTECTION] CONSUMER FINANCIAL PROTECTION BUREAU.

  (a) Bureau Established.--There is established in the Federal 
Reserve System, an independent bureau to be known as the 
``[Bureau of Consumer Financial Protection] Consumer Financial 
Protection Bureau'', which shall regulate the offering and 
provision of consumer financial products or services under the 
Federal consumer financial laws. The Bureau shall be considered 
an Executive agency, as defined in section 105 of title 5, 
United States Code. Except as otherwise provided expressly by 
law, all Federal laws dealing with public or Federal contracts, 
property, works, officers, employees, budgets, or funds, 
including the provisions of chapters 5 and 7 of title 5, shall 
apply to the exercise of the powers of the Bureau.
  (b) Director and Deputy Director.--
          (1) In general.--There is established the position of 
        the Director, who shall serve as the head of the 
        Bureau.
          (2) Appointment.--Subject to paragraph (3), the 
        Director shall be appointed by the President, by and 
        with the advice and consent of the Senate.
          (3) Qualification.--The President shall nominate the 
        Director from among individuals who are citizens of the 
        United States.
          (4) Compensation.--The Director shall be compensated 
        at the rate prescribed for level II of the Executive 
        Schedule under section 5313 of title 5, United States 
        Code.
          (5) Deputy director.--There is established the 
        position of Deputy Director, who shall--
                  (A) be appointed by the Director; and
                  (B) serve as acting Director in the absence 
                or unavailability of the Director.
  (c) Term.--
          (1) In general.--The Director shall serve for a term 
        of 5 years.
          (2) Expiration of term.--An individual may serve as 
        Director after the expiration of the term for which 
        appointed, until a successor has been appointed and 
        qualified.
          (3) Removal for cause.--The President may remove the 
        Director for inefficiency, neglect of duty, or 
        malfeasance in office.
  (d) Service Restriction.--No Director or Deputy Director may 
hold any office, position, or employment in any Federal reserve 
bank, Federal home loan bank, covered person, or service 
provider during the period of service of such person as 
Director or Deputy Director.
  (e) Offices.--The principal office of the Bureau shall be in 
the District of Columbia. The Director may establish regional 
offices of the Bureau, including in cities in which the Federal 
reserve banks, or branches of such banks, are located, in order 
to carry out the responsibilities assigned to the Bureau under 
the Federal consumer financial laws.
  (f) Name Use Requirement.--The Consumer Financial Protection 
Bureau shall refer to itself in any public communication, 
including on any website, as the ``Consumer Financial 
Protection Bureau'' or the ``CFPB''.

SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS.

  (a) Powers of the Bureau.--The Bureau is authorized to 
establish the general policies of the Bureau with respect to 
all executive and administrative functions, including--
          (1) the establishment of rules for conducting the 
        general business of the Bureau, in a manner not 
        inconsistent with this title;
          (2) to bind the Bureau and enter into contracts;
          (3) directing the establishment and maintenance of 
        divisions or other offices within the Bureau, in order 
        to carry out the responsibilities under the Federal 
        consumer financial laws, and to satisfy the 
        requirements of other applicable law;
          (4) to coordinate and oversee the operation of all 
        administrative, enforcement, and research activities of 
        the Bureau;
          (5) to adopt and use a seal;
          (6) to determine the character of and the necessity 
        for the obligations and expenditures of the Bureau;
          (7) the appointment and supervision of personnel 
        employed by the Bureau;
          (8) the distribution of business among personnel 
        appointed and supervised by the Director and among 
        administrative units of the Bureau;
          (9) the use and expenditure of funds;
          (10) implementing the Federal consumer financial laws 
        through rules, orders, guidance, interpretations, 
        statements of policy, examinations, and enforcement 
        actions; and
          (11) performing such other functions as may be 
        authorized or required by law.
  (b) Delegation of Authority.--The Director of the Bureau may 
delegate to any duly authorized employee, representative, or 
agent any power vested in the Bureau by law.
  (c) Office Responsibilities.--Notwithstanding subsections (a) 
and (b), section 1013(a), and any other provision of law, with 
respect to the specific functional units and offices described 
under subsections (b), (c), (d), (e), (g), and (h) of section 
1013 and the advisory boards described under section 1014, the 
Director--
          (1) shall ensure that such functional units, offices, 
        and boards perform the functions, duties, and 
        coordination assigned to them under the applicable 
        provision of section 1013 or 1014; and
          (2) may not reorganize or rename such units, offices, 
        and boards in a manner not provided for under the 
        applicable provision of section 1013 or 1014.
  [(c)] (d) Autonomy of the Bureau.--
          (1) Coordination with the board of governors.--
        Notwithstanding any other provision of law applicable 
        to the supervision or examination of persons with 
        respect to Federal consumer financial laws, the Board 
        of Governors may delegate to the Bureau the authorities 
        to examine persons subject to the jurisdiction of the 
        Board of Governors for compliance with the Federal 
        consumer financial laws.
          (2) Autonomy.--Notwithstanding the authorities 
        granted to the Board of Governors under the Federal 
        Reserve Act, the Board of Governors may not--
                  (A) intervene in any matter or proceeding 
                before the Director, including examinations or 
                enforcement actions, unless otherwise 
                specifically provided by law;
                  (B) appoint, direct, or remove any officer or 
                employee of the Bureau; or
                  (C) merge or consolidate the Bureau, or any 
                of the functions or responsibilities of the 
                Bureau, with any division or office of the 
                Board of Governors or the Federal reserve 
                banks.
          (3) Rules and orders.--No rule or order of the Bureau 
        shall be subject to approval or review by the Board of 
        Governors. The Board of Governors may not delay or 
        prevent the issuance of any rule or order of the 
        Bureau.
          (4) Recommendations and testimony.--No officer or 
        agency of the United States shall have any authority to 
        require the Director or any other officer of the Bureau 
        to submit legislative recommendations, or testimony or 
        comments on legislation, to any officer or agency of 
        the United States for approval, comments, or review 
        prior to the submission of such recommendations, 
        testimony, or comments to the Congress, if such 
        recommendations, testimony, or comments to the Congress 
        include a statement indicating that the views expressed 
        therein are those of the Director or such officer, and 
        do not necessarily reflect the views of the Board of 
        Governors or the President.
          (5) Clarification of autonomy of the bureau in legal 
        proceedings.--The Bureau shall not be liable under any 
        provision of law for any action or inaction of the 
        Board of Governors, and the Board of Governors shall 
        not be liable under any provision of law for any action 
        or inaction of the Bureau.

SEC. 1013. ADMINISTRATION.

  (a) Personnel.--
          (1) Appointment.--
                  (A) In general.--The Director may fix the 
                number of, and appoint and direct, all 
                employees of the Bureau, in accordance with the 
                applicable provisions of title 5, United States 
                Code.
                  (B) Employees of the bureau.--The Director is 
                authorized to employ attorneys, compliance 
                examiners, compliance supervision analysts, 
                economists, statisticians, and other employees 
                as may be deemed necessary to conduct the 
                business of the Bureau. Unless otherwise 
                provided expressly by law, any individual 
                appointed under this section shall be an 
                employee as defined in section 2105 of title 5, 
                United States Code, and subject to the 
                provisions of such title and other laws 
                generally applicable to the employees of an 
                Executive agency.
                  (C) Waiver authority.--
                          (i) In general.--In making any 
                        appointment under subparagraph (A), the 
                        Director may waive the requirements of 
                        chapter 33 of title 5, United States 
                        Code, and the regulations implementing 
                        such chapter, to the extent necessary 
                        to appoint employees on terms and 
                        conditions that are consistent with 
                        those set forth in section 11(1) of the 
                        Federal Reserve Act (12 U.S.C. 248(1)), 
                        while providing for--
                                  (I) fair, credible, and 
                                transparent methods of 
                                establishing qualification 
                                requirements for, recruitment 
                                for, and appointments to 
                                positions;
                                  (II) fair and open 
                                competition and equitable 
                                treatment in the consideration 
                                and selection of individuals to 
                                positions;
                                  (III) fair, credible, and 
                                transparent methods of 
                                assigning, reassigning, 
                                detailing, transferring, and 
                                promoting employees.
                          (ii) Veterans preferences.--In 
                        implementing this subparagraph, the 
                        Director shall comply with the 
                        provisions of section 2302(b)(11), 
                        regarding veterans' preference 
                        requirements, in a manner consistent 
                        with that in which such provisions are 
                        applied under chapter 33 of title 5, 
                        United States Code. The authority under 
                        this subparagraph to waive the 
                        requirements of that chapter 33 shall 
                        expire 5 years after the date of 
                        enactment of this Act.
                  (D) Duty to provide adequate staffing.--The 
                Director shall ensure that the specific 
                functional units and offices described under 
                subsections (b), (c), (d), (e), (g), and (h) of 
                section 1013, as well as other units and 
                offices with supervisory and enforcement 
                duties, are provided with sufficient staff to 
                carry out the functions, duties, and 
                coordination of those units and offices.
                  (E) Limitation on political appointees.--
                          (i) In general.--In appointing 
                        employees of the Bureau who are 
                        political appointees, the Director 
                        shall ensure that the number and duties 
                        of such political appointees are as 
                        similar as possible to those of the 
                        other Federal primary financial 
                        regulatory agencies.
                          (ii) Political appointees defined.--
                        For purposes of this subparagraph, the 
                        term ``political appointee'' means an 
                        employee who holds--
                                  (I) a position which has been 
                                excepted from the competitive 
                                service by reason of its 
                                confidential, policy-
                                determining, policy-making, or 
                                policy-advocating character;
                                  (II) a position in the Senior 
                                Executive Service as a 
                                noncareer appointee (as such 
                                term is defined in section 
                                3132(a) of title 5, United 
                                States Code); or
                                  (III) a position under the 
                                Executive Schedule (subchapter 
                                II of chapter 53 of title 5, 
                                United States Code).
          (2) Compensation.--Notwithstanding any otherwise 
        applicable provision of title 5, United States Code, 
        concerning compensation, including the provisions of 
        chapter 51 and chapter 53, the following provisions 
        shall apply with respect to employees of the Bureau:
                  (A) The rates of basic pay for all employees 
                of the Bureau may be set and adjusted by the 
                Director.
                  (B) The Director shall at all times provide 
                compensation (including benefits) to each class 
                of employees that, at a minimum, are comparable 
                to the compensation and benefits then being 
                provided by the Board of Governors for the 
                corresponding class of employees.
                  (C) All such employees shall be compensated 
                (including benefits) on terms and conditions 
                that are consistent with the terms and 
                conditions set forth in section 11(l) of the 
                Federal Reserve Act (12 U.S.C. 248(l)).
          (3) Bureau participation in federal reserve system 
        retirement plan and federal reserve system thrift 
        plan.--
                  (A) Employee election.--Employees appointed 
                to the Bureau may elect to participate in 
                either--
                          (i) both the Federal Reserve System 
                        Retirement Plan and the Federal Reserve 
                        System Thrift Plan, under the same 
                        terms on which such participation is 
                        offered to employees of the Board of 
                        Governors who participate in such plans 
                        and under the terms and conditions 
                        specified under section 1064(i)(1)(C); 
                        or
                          (ii) the Civil Service Retirement 
                        System under chapter 83 of title 5, 
                        United States Code, or the Federal 
                        Employees Retirement System under 
                        chapter 84 of title 5, United States 
                        Code, if previously covered under one 
                        of those Federal employee retirement 
                        systems.
                  (B) Election period.--Bureau employees shall 
                make an election under this paragraph not later 
                than 1 year after the date of appointment by, 
                or transfer under subtitle F to, the Bureau. 
                Participation in, and benefit accruals under, 
                any other retirement plan established or 
                maintained by the Federal Government shall end 
                not later than the date on which participation 
                in, and benefit accruals under, the Federal 
                Reserve System Retirement Plan and Federal 
                Reserve System Thrift Plan begin.
                  (C) Employer contribution.--The Bureau shall 
                pay an employer contribution to the Federal 
                Reserve System Retirement Plan, in the amount 
                established as an employer contribution under 
                the Federal Employees Retirement System, as 
                established under chapter 84 of title 5, United 
                States Code, for each Bureau employee who 
                elects to participate in the Federal Reserve 
                System Retirement Plan. The Bureau shall pay an 
                employer contribution to the Federal Reserve 
                System Thrift Plan for each Bureau employee who 
                elects to participate in such plan, as required 
                under the terms of such plan.
                  (D) Controlled group status.--The Bureau is 
                the same employer as the Federal Reserve System 
                (as comprised of the Board of Governors and 
                each of the 12 Federal reserve banks prior to 
                the date of enactment of this Act) for purposes 
                of subsections (b), (c), (m), and (o) of 
                section 414 of the Internal Revenue Code of 
                1986, (26 U.S.C. 414).
          (4) Labor-management relations.--Chapter 71 of title 
        5, United States Code, shall apply to the Bureau and 
        the employees of the Bureau.
          (5) Agency ombudsman.--
                  (A) Establishment required.--Not later than 
                180 days after the designated transfer date, 
                the Bureau shall appoint an ombudsman.
                  (B) Duties of ombudsman.--The ombudsman 
                appointed in accordance with subparagraph (A) 
                shall--
                          (i) act as a liaison between the 
                        Bureau and any affected person with 
                        respect to any problem that such party 
                        may have in dealing with the Bureau, 
                        resulting from the regulatory 
                        activities of the Bureau; and
                          (ii) assure that safeguards exist to 
                        encourage complainants to come forward 
                        and preserve confidentiality.
  (b) Specific Functional Units.--
          (1) Research.--The Director shall establish a unit 
        whose functions shall include researching, analyzing, 
        and reporting on--
                  (A) developments in markets for consumer 
                financial products or services, including 
                market areas of alternative consumer financial 
                products or services with high growth rates and 
                areas of risk to consumers;
                  (B) access to fair and affordable credit for 
                traditionally underserved communities;
                  (C) consumer awareness, understanding, and 
                use of disclosures and communications regarding 
                consumer financial products or services;
                  (D) consumer awareness and understanding of 
                costs, risks, and benefits of consumer 
                financial products or services;
                  (E) consumer behavior with respect to 
                consumer financial products or services, 
                including performance on mortgage loans; and
                  (F) experiences of traditionally underserved 
                consumers, including un-banked and under-banked 
                consumers.
          (2) Community affairs.--The Director shall establish 
        a unit whose functions shall include providing 
        information, guidance, and technical assistance 
        regarding the offering and provision of consumer 
        financial products or services to traditionally 
        underserved consumers and communities.
          (3) Collecting and tracking complaints.--
                  (A) In general.--The Director shall establish 
                a unit whose functions shall include 
                establishing a single, toll-free telephone 
                number, a publicly available website, and a 
                publicly available database or utilizing an 
                existing publicly available database to 
                facilitate the centralized collection of, 
                monitoring of, and response to consumer 
                complaints regarding consumer financial 
                products or services. The Director shall 
                coordinate with the Federal Trade Commission or 
                other Federal agencies to route complaints to 
                such agencies, where appropriate. The Director 
                shall ensure that the landing page of the main 
                website of the Bureau contains a clear and 
                conspicuous hyperlink to the consumer complaint 
                publicly available database described in this 
                subparagraph and shall ensure that such 
                publicly available database is user-friendly 
                and in plain writing (as such term is defined 
                in the Plain Writing Act of 2010). The Director 
                shall ensure that all information on the 
                website or the publicly available database that 
                explains how to file a complaint with the 
                Bureau, as well as all reports of the Bureau 
                with respect to information contained in the 
                publicly available database, shall be provided 
                in each of the 5 most commonly spoken 
                languages, other than English, in the United 
                States, as determined by the Bureau of the 
                Census on an ongoing basis, and in formats 
                accessible to individuals with hearing or 
                vision impairments.
                  (B) Routing calls to states.--To the extent 
                practicable, State agencies may receive 
                appropriate complaints from the systems 
                established under subparagraph (A), if--
                          (i) the State agency system has the 
                        functional capacity to receive calls or 
                        electronic reports routed by the Bureau 
                        systems;
                          (ii) the State agency has satisfied 
                        any conditions of participation in the 
                        system that the Bureau may establish, 
                        including treatment of personally 
                        identifiable information and sharing of 
                        information on complaint resolution or 
                        related compliance procedures and 
                        resources; and
                          (iii) participation by the State 
                        agency includes measures necessary to 
                        provide for protection of personally 
                        identifiable information that conform 
                        to the standards for protection of the 
                        confidentiality of personally 
                        identifiable information and for data 
                        integrity and security that apply to 
                        the Federal agencies described in 
                        subparagraph (D).
                  (C) Reports to the congress.--The Director 
                shall present an annual report to Congress not 
                later than March 31 of each year on the 
                complaints received by the Bureau in the prior 
                year regarding consumer financial products and 
                services. Such report shall include information 
                and analysis about complaint numbers, complaint 
                types, and, where applicable, information about 
                resolution of complaints.
                  (D) Data sharing required.--To facilitate 
                preparation of the reports required under 
                subparagraph (C), supervision and enforcement 
                activities, and monitoring of the market for 
                consumer financial products and services, the 
                Bureau shall share consumer complaint 
                information with prudential regulators, the 
                Federal Trade Commission, other Federal 
                agencies, and State agencies, subject to the 
                standards applicable to Federal agencies for 
                protection of the confidentiality of personally 
                identifiable information and for data security 
                and integrity. The prudential regulators, the 
                Federal Trade Commission, and other Federal 
                agencies shall share data relating to consumer 
                complaints regarding consumer financial 
                products and services with the Bureau, subject 
                to the standards applicable to Federal agencies 
                for protection of confidentiality of personally 
                identifiable information and for data security 
                and integrity.
                  (E) Public availability of information.--
                          (i) In general.--The Director shall--
                                  (I) make all consumer 
                                complaints available to the 
                                public on a website of the 
                                Bureau;
                                  (II) place a clear and 
                                conspicuous hyperlink on the 
                                landing page of the main 
                                website of the Bureau to the 
                                website described under 
                                subclause (I); and
                                  (III) ensure that such 
                                website--
                                          (aa) is searchable 
                                        and sortable by both 
                                        consumer financial 
                                        product or service and 
                                        by covered person; and
                                          (bb) is user-friendly 
                                        and written in plain 
                                        language.
                          (ii) Inclusion of complaints 
                        submitted with inquiries.--For purposes 
                        of clause (i), in addition to all 
                        complaints described under subparagraph 
                        (A), consumer complaints shall include 
                        any complaints submitted with, or as 
                        part of, an inquiry described under 
                        section 1034.
                          (iii) Removal of personally 
                        identifiable information.--In making 
                        the information described under clause 
                        (i) available to the public, the 
                        Director shall remove all personally 
                        identifiable information.
  (c) Office of Fair Lending and Equal Opportunity.--
          (1) Establishment.--The Director shall establish 
        within the Bureau the Office of Fair Lending and Equal 
        Opportunity.
          (2) Functions.--The [Office of Fair Lending and Equal 
        Opportunity shall have such powers and duties as the 
        Director may delegate to the Office, including] powers 
        and duties of the Office of Fair Lending and Equal 
        Opportunity shall include--
                  (A) providing oversight and enforcement of 
                Federal laws intended to ensure the fair, 
                equitable, and nondiscriminatory access to 
                credit for both individuals and communities 
                that are enforced by the Bureau, including the 
                Equal Credit Opportunity Act and the Home 
                Mortgage Disclosure Act;
                  (B) coordinating fair lending efforts of the 
                Bureau with other Federal agencies and State 
                regulators, as appropriate, to promote 
                consistent, efficient, and effective 
                enforcement of Federal fair lending laws;
                  (C) working with private industry, fair 
                lending, civil rights, consumer and community 
                advocates on the promotion of fair lending 
                compliance and education; [and]
                  (D) providing annual reports to Congress on 
                the efforts of the Bureau to fulfill its fair 
                lending mandate[.];
                  (E) implementing the Bureau's enforcement and 
                supervisory authority with respect to fair 
                lending laws; and
                  (F) such additional powers and duties as the 
                Director may determine appropriate.
          (3) Administration of office.--There is established 
        the position of Assistant Director of the Bureau for 
        Fair Lending and Equal Opportunity, who--
                  (A) shall be appointed by the Director; and
                  (B) shall carry out such duties as the 
                Director may delegate to such Assistant 
                Director.
  (d) Office of Financial Education.--
          (1) Establishment.--The Director shall establish an 
        Office of Financial Education, which shall be 
        responsible for developing and implementing initiatives 
        intended to educate and empower consumers to make 
        better informed financial decisions.
          (2) Other duties.--The Office of Financial Education 
        shall develop and implement a strategy to improve the 
        financial literacy of consumers that includes 
        measurable goals and objectives, in consultation with 
        the Financial Literacy and Education Commission, 
        consistent with the National Strategy for Financial 
        Literacy, through activities including providing 
        opportunities for consumers to access--
                  (A) financial counseling, including 
                community-based financial counseling, where 
                practicable;
                  (B) information to assist with the evaluation 
                of credit products and the understanding of 
                credit histories and scores;
                  (C) savings, borrowing, and other services 
                found at mainstream financial institutions;
                  (D) activities intended to--
                          (i) prepare the consumer for 
                        educational expenses and the submission 
                        of financial aid applications, and 
                        other major purchases;
                          (ii) reduce debt; and
                          (iii) improve the financial situation 
                        of the consumer;
                  (E) assistance in developing long-term 
                savings strategies; and
                  (F) wealth building and financial services 
                during the preparation process to claim earned 
                income tax credits and Federal benefits.
          (3) Coordination.--The Office of Financial Education 
        shall coordinate with other units within the Bureau in 
        carrying out its functions, including--
                  (A) working with the Community Affairs Office 
                to implement the strategy to improve financial 
                literacy of consumers; and
                  (B) working with the research unit 
                established by the Director to conduct research 
                related to consumer financial education and 
                counseling.
          (4) Report.--Not later than 24 months after the 
        designated transfer date, and annually thereafter, the 
        Director shall submit a report on its financial 
        literacy activities and strategy to improve financial 
        literacy of consumers to--
                  (A) the Committee on Banking, Housing, and 
                Urban Affairs of the Senate; and
                  (B) the Committee on Financial Services of 
                the House of Representatives.
          (5) Membership in financial literacy and education 
        commission.--Section 513(c)(1) of the Financial 
        Literacy and Education Improvement Act (20 U.S.C. 
        9702(c)(1)) is amended--
                  (A) in subparagraph (B), by striking ``and'' 
                at the end;
                  (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                  (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                  ``(C) the Director of the [Bureau of Consumer 
                Financial Protection] Consumer Financial 
                Protection Bureau; and''.
          (6) Conforming amendment.--Section 513(d) of the 
        Financial Literacy and Education Improvement Act (20 
        U.S.C. 9702(d)) is amended by adding at the end the 
        following: ``The Director of the [Bureau of Consumer 
        Financial Protection] Consumer Financial Protection 
        Bureau shall serve as the Vice Chairman.''.
          (7) Study and report on financial literacy program.--
                  (A) In general.--The Comptroller General of 
                the United States shall conduct a study to 
                identify--
                          (i) the feasibility of certification 
                        of persons providing the programs or 
                        performing the activities described in 
                        paragraph (2), including recognizing 
                        outstanding programs, and developing 
                        guidelines and resources for community-
                        based practitioners, including--
                                  (I) a potential certification 
                                process and standards for 
                                certification;
                                  (II) appropriate certifying 
                                entities;
                                  (III) resources required for 
                                funding such a process; and
                                  (IV) a cost-benefit analysis 
                                of such certification;
                          (ii) technological resources intended 
                        to collect, analyze, evaluate, or 
                        promote financial literacy and 
                        counseling programs;
                          (iii) effective methods, tools, and 
                        strategies intended to educate and 
                        empower consumers about personal 
                        finance management; and
                          (iv) recommendations intended to 
                        encourage the development of programs 
                        that effectively improve financial 
                        education outcomes and empower 
                        consumers to make better informed 
                        financial decisions based on findings.
                  (B) Report.--Not later than 1 year after the 
                date of enactment of this Act, the Comptroller 
                General of the United States shall submit a 
                report on the results of the study conducted 
                under this paragraph to the Committee on 
                Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on Financial Services 
                of the House of Representatives.
  (e) Office of Service Member Affairs.--
          (1) In general.--The Director shall establish an 
        Office of Service Member Affairs, which shall be 
        responsible for developing and implementing initiatives 
        for service members and their families intended to--
                  (A) educate and empower service members and 
                their families to make better informed 
                decisions regarding consumer financial products 
                and services;
                  (B) coordinate with the unit of the Bureau 
                established under subsection (b)(3), in order 
                to monitor complaints by service members and 
                their families and responses to those 
                complaints by the Bureau or other appropriate 
                Federal or State agency; and
                  (C) coordinate efforts among Federal and 
                State agencies, as appropriate, regarding 
                consumer protection measures relating to 
                consumer financial products and services 
                offered to, or used by, service members and 
                their families.
          (2) Coordination.--
                  (A) Regional services.--The Director is 
                authorized to assign employees of the Bureau as 
                may be deemed necessary to conduct the business 
                of the Office of Service Member Affairs, 
                including by establishing and maintaining the 
                functions of the Office in regional offices of 
                the Bureau located near military bases, 
                military treatment facilities, or other similar 
                military facilities.
                  (B) Agreements.--The Director is authorized 
                to enter into memoranda of understanding and 
                similar agreements with the Department of 
                Defense, including any branch or agency as 
                authorized by the department, in order to carry 
                out the business of the Office of Service 
                Member Affairs.
          (3) Definition.--As used in this subsection, the term 
        ``service member'' means any member of the United 
        States Armed Forces and any member of the National 
        Guard or Reserves.
  (f) Timing.--The Office of Fair Lending and Equal 
Opportunity, the Office of Financial Education, and the Office 
of Service Member Affairs shall each be established not later 
than 1 year after the designated transfer date.
  (g) Office of Financial Protection for Older Americans.--
          (1) Establishment.--Before the end of the 180-day 
        period beginning on the designated transfer date, the 
        Director shall establish the Office of Financial 
        Protection for Older Americans, the functions of which 
        shall include activities designed to facilitate the 
        financial literacy of individuals who have attained the 
        age of 62 years or more (in this subsection, referred 
        to as ``seniors'') on protection from unfair, 
        deceptive, and abusive practices and on current and 
        future financial choices, including through the 
        dissemination of materials to seniors on such topics.
          (2) Assistant director.--The Office of Financial 
        Protection for Older Americans (in this subsection 
        referred to as the ``Office'') shall be headed by an 
        assistant director.
          (3) Duties.--The Office shall--
                  (A) develop goals for programs that provide 
                seniors financial literacy and counseling, 
                including programs that--
                          (i) help seniors recognize warning 
                        signs of unfair, deceptive, or abusive 
                        practices, protect themselves from such 
                        practices;
                          (ii) provide one-on-one financial 
                        counseling on issues including long-
                        term savings and later-life economic 
                        security; and
                          (iii) provide personal consumer 
                        credit advocacy to respond to consumer 
                        problems caused by unfair, deceptive, 
                        or abusive practices;
                  (B) monitor certifications or designations of 
                financial advisors who advise seniors and alert 
                the Commission and State regulators of 
                certifications or designations that are 
                identified as unfair, deceptive, or abusive;
                  (C) not later than 18 months after the date 
                of the establishment of the Office, submit to 
                Congress and the Commission any legislative and 
                regulatory recommendations on the best 
                practices for--
                          (i) disseminating information 
                        regarding the legitimacy of 
                        certifications of financial advisers 
                        who advise seniors;
                          (ii) methods in which a senior can 
                        identify the financial advisor most 
                        appropriate for the senior's needs; and
                          (iii) methods in which a senior can 
                        verify a financial advisor's 
                        credentials;
                  (D) conduct research to identify best 
                practices and effective methods, tools, 
                technology and strategies to educate and 
                counsel seniors about personal finance 
                management with a focus on--
                          (i) protecting themselves from 
                        unfair, deceptive, and abusive 
                        practices;
                          (ii) long-term savings; and
                          (iii) planning for retirement and 
                        long-term care;
                  (E) coordinate consumer protection efforts of 
                seniors with other Federal agencies and State 
                regulators, as appropriate, to promote 
                consistent, effective, and efficient 
                enforcement; and
                  (F) work with community organizations, non-
                profit organizations, and other entities that 
                are involved with educating or assisting 
                seniors (including the National Education and 
                Resource Center on Women and Retirement 
                Planning).
  (h) Application of FACA.--Notwithstanding any provision of 
the Federal Advisory Committee Act (5 U.S.C. App.), such Act 
shall apply to each advisory committee of the Bureau and each 
subcommittee of such an advisory committee.
  (i) Additional Report Information on Consumer Savings.--In 
issuing each report required under section 502(d) of the Credit 
CARD Act of 2009, the Bureau shall include a numerical estimate 
of the amount that such Act has saved consumers in fees 
impacted by such Act, relative to the level of such fees prior 
to the enactment of such Act.
  (j) Office of Students and Young Consumers.--
          (1) In general.--The Director shall, not later than 
        the end of the 60-day period beginning on the date of 
        enactment of this section, establish an Office of 
        Students and Young Consumers, which shall work to 
        empower students, young people, and their families to 
        make more informed financial decisions about saving and 
        paying for college, accessing safer and more affordable 
        financial products and services, all matters related to 
        private education loans (as defined under section 
        1035(e)), and repaying student loan debt, including 
        private education loans.
          (2) Head of the office.--The head of the Office of 
        Students and Young Consumers shall be the Assistant 
        Director and Student Loan Ombudsman, and the Assistant 
        Director and Student Loan Ombudsman shall carry out all 
        functions established under section 1035 through the 
        Office of Students and Young Consumers.
          (3) Supervisory, enforcement, and regulatory 
        matters.--The Office of Students and Young Consumers 
        shall assist in all supervisory, enforcement, and 
        regulatory matters of the Bureau related to the 
        functions of the Office.
          (4) Coordination.--The Director shall enter into 
        memoranda of understanding and similar agreements with 
        the Department of Education and other Federal and State 
        agencies, as appropriate, in order to carry out the 
        business of the Office of Students and Young Consumers.
  (k) Advisory Committee Requirements.--
          (1) Qualifications.--In appointing members of any 
        advisory committee, other than the Consumer Advisory 
        Board, the Director shall ensure that at least \1/3\ of 
        the members represent the interests of consumers, 
        including experts in consumer protection, fair lending, 
        civil rights, and representatives of communities that 
        have been significantly impacted by higher-priced 
        mortgage loans and other products that resulted in 
        consumer harm.
          (2) Selection of members representing minority-owned 
        and women-owned businesses.--In appointing members of 
        any advisory committee, the Director shall seek to 
        promote diversity and inclusion in making appointments, 
        including by appointing individuals who represent 
        minority-owned and women-owned businesses.

SEC. 1014. CONSUMER ADVISORY BOARD.

  (a) Establishment Required.--The Director shall establish a 
Consumer Advisory Board to advise and consult with the Bureau 
in the exercise of its functions under the Federal consumer 
financial laws, and to provide information on emerging 
practices in the consumer financial products or services 
industry, including regional trends, concerns, and other 
relevant information.
  [(b) Membership.--In appointing the members of the Consumer 
Advisory Board, the Director shall seek to assemble experts in 
consumer protection, financial services, community development, 
fair lending and civil rights, and consumer financial products 
or services and representatives of depository institutions that 
primarily serve underserved communities, and representatives of 
communities that have been significantly impacted by higher-
priced mortgage loans, and seek representation of the interests 
of covered persons and consumers, without regard to party 
affiliation. Not fewer than 6 members shall be appointed upon 
the recommendation of the regional Federal Reserve Bank 
Presidents, on a rotating basis.]
  (b) Membership.--
          (1) Qualifications.--In appointing the members of the 
        Consumer Advisory Board, the Director shall--
                  (A) seek to assemble a diverse and inclusive 
                group of experts in consumer protection, 
                financial services, community development, fair 
                lending and civil rights, and consumer 
                financial products or services and 
                representatives of depository institutions that 
                primarily serve underserved communities, and 
                representatives of communities that have been 
                significantly impacted by higher-priced 
                mortgage loans, and seek representation of the 
                interests of covered persons and consumers, 
                without regard to party affiliation; and
                  (B) ensure that at least \2/3\ of the members 
                represent the interests of consumers, including 
                experts in consumer protection, fair lending, 
                civil rights, and representatives of 
                communities that have been significantly 
                impacted by higher-priced mortgage loans and 
                other products that resulted in consumer harm.
          (2) Number of members.--The Director shall appoint 
        not fewer than 25 members to the Consumer Advisory 
        Board, and not fewer than 6 members shall be appointed 
        upon the recommendation of the regional Federal Reserve 
        Bank Presidents, on a rotating basis.
          (3) Membership rights after charter change.--Any 
        change to the charter for the Consumer Advisory Board 
        affecting the membership shall not preclude prior or 
        current members from applying for consideration to 
        serve on a reconstituted Consumer Advisory Board.
  (c) Meetings.--The Consumer Advisory Board shall [meet from] 
meet in person from time to time at the call of the Director, 
but, at a minimum, shall meet at least twice in each year. The 
Bureau shall provide adequate notice to the members of the 
Consumer Advisory Board of the time and date of each meeting, 
and of any meeting cancellations.
  (d) Compensation and Travel Expenses.--Members of the 
Consumer Advisory Board who are not full-time employees of the 
United States shall--
          (1) be entitled to receive compensation at a rate 
        fixed by the Director while attending meetings of the 
        Consumer Advisory Board, including travel time; and
          (2) be allowed travel expenses, including 
        transportation and subsistence, while away from their 
        homes or regular places of business.
  (e) Inclusion of the Director in Meetings and Access to 
Bureau Staff.--With respect to each in person meeting of the 
Consumer Advisory Board--
          (1) the Director shall attend such meeting in person; 
        and
          (2) the Director shall ensure that the members of the 
        Consumer Advisory Board have an opportunity to meet and 
        engage in person with all appropriate staff and office 
        of the Bureau.

           *       *       *       *       *       *       *


SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

  (a) Appearances Before Congress.--The Director of the Bureau 
shall appear before the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial 
Services and the Committee on Energy and Commerce of the House 
of Representatives at semi-annual hearings regarding the 
reports required under subsection (b).
  (b) Reports Required.--The Bureau shall, concurrent with each 
semi-annual hearing referred to in subsection (a), prepare and 
submit to the President and to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services and the Committee on Energy and Commerce of 
the House of Representatives, a report, beginning with the 
session following the designated transfer date. The Bureau may 
also submit such report to the Committee on Commerce, Science, 
and Transportation of the Senate.
  (c) Contents.--The reports required by subsection (b) shall 
include--
          (1) a discussion of the significant problems faced by 
        consumers in shopping for or obtaining consumer 
        financial products or services;
          (2) a justification of the budget request of the 
        previous year;
          (3) a list of the significant rules and orders 
        adopted by the Bureau, as well as other significant 
        initiatives conducted by the Bureau, during the 
        preceding year and the plan of the Bureau for rules, 
        orders, or other initiatives to be undertaken during 
        the upcoming period;
          (4) an analysis of complaints about consumer 
        financial products or services that the Bureau has 
        received and collected in its central database on 
        complaints during the preceding year;
          (5) a list, with a brief statement of the issues, of 
        the public supervisory and enforcement actions to which 
        the Bureau was a party during the preceding year;
          (6) the actions taken regarding rules, orders, and 
        supervisory actions with respect to covered persons 
        which are not credit unions or depository institutions;
          (7) an assessment of significant actions by State 
        attorneys general or State regulators relating to 
        Federal consumer financial law;
          (8) an analysis of the efforts of the Bureau to 
        fulfill the fair lending mission of the Bureau; [and]
          (9) an analysis of the efforts of the Bureau to 
        increase workforce and contracting diversity consistent 
        with the procedures established by the Office of 
        Minority and Women Inclusion[.];
          (10) a list of each memorandum of understanding in 
        effect with the Bureau, any changes made to a 
        memorandum of understanding since the last report was 
        made under subsection (b), and a justification for each 
        such change;
          (11) with respect to each of the specific functional 
        units and offices established under section 1013--
                  (A) a detailed description of the activities 
                of the unit or office since the last report was 
                made under subsection (b); and
                  (B) an analysis of the efforts of the Bureau 
                to achieve the duties of the unit or office; 
                and
          (12) with respect to each specific functional units 
        and offices established under section 1013, as well as 
        each other unit and office with supervisory and 
        enforcement duties, a break down of the number of 
        political and professional career staff assigned to and 
        employed by each unit or office at the end of the 
        reporting period.

           *       *       *       *       *       *       *


Subtitle C--Specific Bureau Authorities

           *       *       *       *       *       *       *


SEC. 1035. [PRIVATE EDUCATION]  ASSISTANT DIRECTOR AND STUDENT LOAN 
                    OMBUDSMAN.

  (a) Establishment.--[The Secretary, in consultation with the 
Director, shall designate a Private Education Loan Ombudsman] 
The Director shall designate an individual as the Assistant 
Director and Student Loan Ombudsman (in this section referred 
to as the ``Ombudsman'') within the Bureau, to provide timely 
assistance to borrowers of private education loans.
  (b) Public Information.--[The Secretary and the Director] The 
Director shall disseminate information about the availability 
and functions of the Ombudsman to borrowers and potential 
borrowers, as well as institutions of higher education, 
lenders, guaranty agencies, loan servicers, and other 
participants in private education student loan programs.
  (c) Functions of Ombudsman.--The Ombudsman designated under 
this subsection shall--
          (1) in accordance with regulations of the Director, 
        receive, review, and attempt to resolve informally 
        complaints from borrowers of loans described in 
        subsection (a), including, as appropriate, attempts to 
        resolve such complaints in collaboration with the 
        Department of Education and with institutions of higher 
        education, lenders, guaranty agencies, loan servicers, 
        and other participants in private education loan 
        programs;
          (2) not later than 90 days after the designated 
        transfer date, establish a memorandum of understanding 
        with the student loan ombudsman established under 
        section 141(f) of the Higher Education Act of 1965 (20 
        U.S.C. 1018(f)), to ensure coordination in providing 
        assistance to and serving borrowers seeking to resolve 
        complaints related to their private education or 
        Federal student loans;
          (3) compile and analyze data on borrower complaints 
        regarding private education loans; and
          (4) make appropriate recommendations to the Director, 
        the Secretary, the Secretary of Education, the 
        Committee on Banking, Housing, and Urban Affairs and 
        the Committee on Health, Education, Labor, and Pensions 
        of the Senate and the Committee on Financial Services 
        and the Committee on Education and Labor of the House 
        of Representatives.
  (d) Annual Reports.--
          (1) In general.--The Ombudsman shall prepare an 
        annual report that describes the activities, and 
        evaluates the effectiveness of the Ombudsman during the 
        preceding year.
          (2) Submission.--The report required by paragraph (1) 
        shall be submitted on the same date annually to the 
        Director, the Secretary, the Secretary of Education, 
        the Committee on Banking, Housing, and Urban Affairs 
        and the Committee on Health, Education, Labor, and 
        Pensions of the Senate and the Committee on Financial 
        Services and the Committee on Education and Labor of 
        the House of Representatives.
  (e) Definitions.--For purposes of this section, the terms 
``private education loan'' and ``institution of higher 
education'' have the same meanings as in section 140 of the 
Truth in Lending Act (15 U.S.C. 1650).

           *       *       *       *       *       *       *


       TITLE XIV--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

SEC. 1400. SHORT TITLE; DESIGNATION AS ENUMERATED CONSUMER LAW.

  (a) Short Title.--This title may be cited as the ``Mortgage 
Reform and Anti-Predatory Lending Act''.
  (b) Designation as Enumerated Consumer Law Under the Purview 
of the [Bureau of Consumer Financial Protection] Consumer 
Financial Protection Bureau.--Subtitles A, B, C, and E and 
sections 1471, 1472, 1475, and 1476, and the amendments made by 
such subtitles and sections, shall be enumerated consumer laws, 
as defined in section 1002, and come under the purview of the 
[Bureau of Consumer Financial Protection] Consumer Financial 
Protection Bureau for purposes of title X, including the 
transfer of functions and personnel under subtitle F of title X 
and the savings provisions of such subtitle.
  (c) Regulations; Effective Date.--
          (1) Regulations.--The regulations required to be 
        prescribed under this title or the amendments made by 
        this title shall--
                  (A) be prescribed in final form before the 
                end of the 18-month period beginning on the 
                designated transfer date; and
                  (B) take effect not later than 12 months 
                after the date of issuance of the regulations 
                in final form.
          (2) Effective date established by rule.--Except as 
        provided in paragraph (3), a section, or provision 
        thereof, of this title shall take effect on the date on 
        which the final regulations implementing such section, 
        or provision, take effect.
          (3) Effective date.--A section of this title for 
        which regulations have not been issued on the date that 
        is 18 months after the designated transfer date shall 
        take effect on such date.

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          ALTERNATIVE MORTGAGE TRANSACTION PARITY ACT OF 1982

TITLE VIII--ALTERNATIVE MORTGAGE TRANSACTIONS

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                    alternative mortgage authority.

  Sec. 804. (a) In order to prevent discrimination against 
State-chartered depository institutions, and other nonfederally 
chartered housing creditors, with respect to making, 
purchasing, and enforcing alternative mortgage transactions, 
housing creditors may make, purchase, and enforce alternative 
mortgage transactions, except that this section shall apply--
          (1) with respect to banks, only to transactions made 
        on or before the designated transfer date, as 
        determined under section 1062 of the Consumer Financial 
        Protection Act of 2010 in accordance with regulations 
        governing alternative mortgage transactions as issued 
        by the Comptroller of the Currency for national banks, 
        to the extent that such regulations are authorized by 
        rulemaking authority granted to the Comptroller of the 
        Currency with regard to national banks under laws other 
        than this section;
          (2) with respect to credit unions, only to 
        transactions made on or before the designated transfer 
        date, as determined under section 1062 of the Consumer 
        Financial Protection Act of 2010 in accordance with 
        regulations governing alternative mortgage transactions 
        as issued by the National Credit Union Administration 
        Board for Federal credit unions, to the extent that 
        such regulations are authorized by rulemaking authority 
        granted to the National Credit Union Administration 
        with regard to Federal credit unions under laws other 
        than this section;
          (3) with respect to all other housing creditors, 
        including without limitation, savings and loan 
        associations, mutual savings banks, and savings banks, 
        only to transactions made on or before the designated 
        transfer date, as determined under section 1062 of the 
        Consumer Financial Protection Act of 2010, in 
        accordance with regulations governing alternative 
        mortgage transactions as issued by the Director of the 
        Office of Thrift Supervision for federally charter 
        savings and loan associations, to the extent that such 
        regulations are authorized by rulemaking authority 
        granted to the Director of the Office of Thrift 
        Supervision with regard to federally chartered savings 
        and loan associations under laws other than this 
        section; and
          (4) with respect to transactions made after the 
        designated transfer date, only in accordance with 
        regulations governing alternative mortgage 
        transactions, as issued by the [Bureau of Consumer 
        Financial Protection] Consumer Financial Protection 
        Bureau for federally chartered housing creditors, in 
        accordance with the rulemaking authority granted to the 
        [Bureau of Consumer Financial Protection] Consumer 
        Financial Protection Bureau with regard to federally 
        chartered housing creditors under provisions of law 
        other than this section.
  (b) For the purpose of determining the applicability of this 
section, an alternative mortgage transaction shall be deemed to 
be made in accordance with the applicable regulation 
notwithstanding the housing creditor's failure to comply with 
the regulations, if--
          (1) the transaction is in substantial compliance with 
        the regulation; and
          (2) within 60 days of discovering any error, the 
        housing credit correct such error, including making 
        appropriate adjustments, if any, to the account.
  (c) Preemption of State Law.--An alternative mortgage 
transaction may be made by a housing creditor in accordance 
with this section, notwithstanding any State constitution, law, 
or regulation that prohibits an alternative mortgage 
transaction. For purposes of this subsection, a State 
constitution, law, or regulation that prohibits an alternative 
mortgage transaction does not include any State constitution, 
law, or regulation that regulates mortgage transactions 
generally, including any restriction on prepayment penalties or 
late charges.
  (d) Bureau Actions.--The [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau shall--
          (1) review the regulations identified by the 
        Comptroller of the Currency and the National Credit 
        Union Administration, (as those rules exist on the 
        designated transfer date), as applicable under 
        paragraphs (1) through (3) of subsection (a);
          (2) determine whether such regulations are fair and 
        not deceptive and otherwise meet the objectives of the 
        Consumer Financial Protection Act of 2010; and
          (3) promulgate regulations under subsection (a)(4) 
        after the designated transfer date.
  (e) Designated Transfer Date.--As used in this section, the 
term ``designated transfer date'' means the date determined 
under section 1062 of the Consumer Financial Protection Act of 
2010.

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                              ----------                              


                     CONSUMER CREDIT PROTECTION ACT

Sec. 1. Short title of entire Act

  This Act may be cited as the Consumer Credit Protection Act.

TITLE I--CONSUMER CREDIT COST DISCLOSURE

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CHAPTER 1--GENERAL PROVISIONS

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Sec. 103. Definitions and rules of construction

  (a) The definitions and rules of construction set forth in 
this section are applicable for the purposes of this title.
  (b) Bureau.--The term ``Bureau'' means the [Bureau of 
Consumer Financial Protection] Consumer Financial Protection 
Bureau.
  (c) The term ``Bureau'' refers to the Bureau of Governors of 
the Federal Reserve System.
  (d) The term ``organization'' means a corporation, government 
or governmental subdivision or agency, trust, estate, 
partnership, cooperative, or association.
  (e) The term ``person'' means a natural person or an 
organization.
  (f) The term ``credit'' means the right granted by a creditor 
to a debtor to defer payment of debt or to incur debt and defer 
its payment.
  (g) The term ``creditor'' refers only to a person who both 
(1) regularly extends, whether in connection with loans, sales 
of property or services, or otherwise, consumer credit which is 
payable by agreement in more than four installments or for 
which the payment of a finance charge is or may be required, 
and (2) is the person to whom the debt arising from the 
consumer credit transaction is initially payable on the face of 
the evidence of indebtedness or, if there is no such evidence 
of indebtedness, by agreement. Notwithstanding the preceding 
sentence, in the case of an open-end credit plan involving a 
credit card, the card issuer and any person who honors the 
credit card and offers a discount which is a finance charge are 
creditors. For the purpose of the requirements imposed under 
chapter 4 and sections 127(a)(5), 127(a)(6), 127(a)(7), 
127(b)(1), 127(b)(2), 127(b)(3), 127(b)(8), and 127(b)(10) of 
chapter 2 of this title, the term ``creditor'' shall also 
include card issuers whether or not the amount due is payable 
by agreement in more than four installments or the payment of a 
finance charge is or may be required, and the Bureau shall, by 
regulation, apply these requirements to such card issuers, to 
the extent appropriate, even though the requirements are by 
their terms applicable only to creditors offering open-end 
credit plans. Any person who originates 2 or more mortgages 
referred to in subsection (aa) in any 12-month period or any 
person who originates 1 or more such mortgages through a 
mortgage broker shall be considered to be a creditor for 
purposes of this title. The term ``creditor'' includes a 
private educational lender (as that term is defined in section 
140) for purposes of this title.
  (h) The term ``credit sale'' refers to any sale in which the 
seller is a creditor. The term includes any contract in the 
form of a bailment or lease if the bailee or lessee contracts 
to pay as compensation for use a sum substantially equivalent 
to or in excess of the aggregate value of the property and 
services involved and it is agreed that the bailee or lessee 
will become, or for no other or a nominal consideration has the 
option to become, the owner of the property upon full 
compliance with his obligations under the contract.
  (i) The adjective ``consumer'', used with reference to a 
credit transaction, characterizes the transaction as one in 
which the party to whom credit is offered or extended is a 
natural person, and the money, property, or services which are 
the subject of the transaction are primarily for personal, 
family, or household purposes.
  (j) The terms ``open end credit plan'' and ``open end 
consumer credit plan'' mean a plan under which the creditor 
reasonably contemplates repeated transactions, which prescribes 
the terms of such transactions, and which provides for a 
finance charge which may be computed from time to time on the 
outstanding unpaid balance. A credit plan or open end consumer 
credit plan which is an open end credit plan or open end 
consumer credit plan within the meaning of the preceding 
sentence is an open end credit plan or open end consumer credit 
plan even if credit information is verified from time to time.
  (k) The term ``adequate notice'', as used in section 133, 
means a printed notice to a cardholder which sets forth the 
pertinent facts clearly and conspicuously so that a person 
against whom it is to operate could reasonably be expected to 
have noticed it and understood its meaning. Such notice may be 
given to a cardholder by printing the notice on any credit 
card, or on each periodic statement of account, issued to the 
cardholder, or by any other means reasonably assuring the 
receipt thereof by the cardholder.
  (l) The term ``credit card'' means any card, plate, coupon 
book or other credit device existing for the purpose of 
obtaining money, property, labor, or services on credit.
  (m) The term ``accepted credit card'' means any credit card 
which the cardholder has requested and received or has signed 
or has used, or authorized another to use, for the purpose of 
obtaining money, property, labor, or services on credit.
  (n) The term ``cardholder'' means any person to whom a credit 
card is issued or any person who has agreed with the card 
issuer to pay obligations arising from the issuance of a credit 
card to another person.
  (o) The term ``card issuer'' means any person who issues a 
credit card, or the agent of such person with respect to such 
card.
  (p) The term ``unauthorized use'', as used in section 133, 
means a use of a credit card by a person other than the 
cardholder who does not have actual, implied, or apparent 
authority for such use and from which the cardholder receives 
no benefit.
  (q) The term ``discount'' as used in section 167 means a 
reduction made from the regular price. The term ``discount'' as 
used in section 167 shall not mean a surcharge.
  (r) The term ``surcharge'' as used in section 103 and section 
167 means any means of increasing the regular price to a 
cardholder which is not imposed upon customers paying by cash, 
check, or similar means.
  (s) The term ``State'' refers to any State, the Commonwealth 
of Puerto Rico, the District of Columbia, and any territory or 
possession of the United States.
  (t) The term ``agricultural purposes'' includes the 
production, harvest, exhibition, marketing, transportation, 
processing, or manufacture of agricultural products by a 
natural person who cultivates, plants, propagates, or nurtures 
those agricultural products, including but not limited to the 
acquisition of farmland, real property with a farm residence, 
and personal property and services used primarily in farming.
  (u) The term ``agricultural products'' includes agricultural, 
horticultural, viticultural, and dairy products, livestock, 
wildlife, poultry, bees, forest products, fish and shellfish, 
and any products thereof, including processed and manufactured 
products, and any and all products raised or produced on farms 
and any processed or manufactured products thereof.
  (v) The term ``material disclosures'' means the disclosure, 
as required by this title, of the annual percentage rate, the 
method of determining the finance charge and the balance upon 
which a finance charge will be imposed, the amount of the 
finance charge, the amount to be financed, the total of 
payments, the number and amount of payments, the due dates or 
periods of payments scheduled to repay the indebtedness, and 
the disclosures required by section 129(a).
  (w) The term ``dwelling'' means a residential structure or 
mobile home which contains one to four family housing units, or 
individual units of condominiums or cooperatives.
  (x) The term ``residential mortgage transaction'' means a 
transaction in which a mortgage, deed of trust, purchase money 
security interest arising under an installment sales contract, 
or equivalent consensual security interest is created or 
retained against the consumer's dwelling to finance the 
acquisition or initial construction of such dwelling.
  (y) As used in this section and section 167, the term 
``regular price'' means the tag or posted price charged for the 
property or service if a single price is tagged or posted, or 
the price charged for the property or service when payment is 
made by use of an open-end credit plan or a credit card if 
either (1) no price is tagged or posted, or (2) two prices are 
tagged or posted, one of which is charged when payment is made 
by use of an open-end credit plan or a credit card and the 
other when payment is made by use of cash, check, or similar 
means. For purposes of this definition, payment by check, 
draft, or other negotiable instrument which may result in the 
debiting of an open-end credit plan or a credit cardholder's 
open-end account shall not be considered payment made by use of 
the plan or the account.
  (z) Any reference to any requirement imposed under this title 
or any provision thereof includes reference to the regulations 
of the Bureau under this title or the provision thereof in 
question.
  (aa) The disclosure of an amount or percentage which is 
greater than the amount or percentage required to be disclosed 
under this title does not in itself constitute a violation of 
this title.
  (bb) High-cost Mortgage.--
          (1) Definition.--
                  (A) In general.--The term ``high-cost 
                mortgage'', and a mortgage referred to in this 
                subsection, means a consumer credit transaction 
                that is secured by the consumer's principal 
                dwelling, other than a reverse mortgage 
                transaction, if--
                          (i) in the case of a credit 
                        transaction secured--
                                  (I) by a first mortgage on 
                                the consumer's principal 
                                dwelling, the annual percentage 
                                rate at consummation of the 
                                transaction will exceed by more 
                                than 6.5 percentage points (8.5 
                                percentage points, if the 
                                dwelling is personal property 
                                and the transaction is for less 
                                than $50,000) the average prime 
                                offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction; or
                                  (II) by a subordinate or 
                                junior mortgage on the 
                                consumer's principal dwelling, 
                                the annual percentage rate at 
                                consummation of the transaction 
                                will exceed by more than 8.5 
                                percentage points the average 
                                prime offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction;
                          (ii) the total points and fees 
                        payable in connection with the 
                        transaction, other than bona fide third 
                        party charges not retained by the 
                        mortgage originator, creditor, or an 
                        affiliate of the creditor or mortgage 
                        originator, exceed--
                                  (I) in the case of a 
                                transaction for $20,000 or 
                                more, 5 percent of the total 
                                transaction amount; or
                                  (II) in the case of a 
                                transaction for less than 
                                $20,000, the lesser of 8 
                                percent of the total 
                                transaction amount or $1,000 
                                (or such other dollar amount as 
                                the Bureau shall prescribe by 
                                regulation); or
                          (iii) the credit transaction 
                        documents permit the creditor to charge 
                        or collect prepayment fees or penalties 
                        more than 36 months after the 
                        transaction closing or such fees or 
                        penalties exceed, in the aggregate, 
                        more than 2 percent of the amount 
                        prepaid.
                  (B) Introductory rates taken into account.--
                For purposes of subparagraph (A)(i), the annual 
                percentage rate of interest shall be determined 
                based on the following interest rate:
                          (i) In the case of a fixed-rate 
                        transaction in which the annual 
                        percentage rate will not vary during 
                        the term of the loan, the interest rate 
                        in effect on the date of consummation 
                        of the transaction.
                          (ii) In the case of a transaction in 
                        which the rate of interest varies 
                        solely in accordance with an index, the 
                        interest rate determined by adding the 
                        index rate in effect on the date of 
                        consummation of the transaction to the 
                        maximum margin permitted at any time 
                        during the loan agreement.
                          (iii) In the case of any other 
                        transaction in which the rate may vary 
                        at any time during the term of the loan 
                        for any reason, the interest charged on 
                        the transaction at the maximum rate 
                        that may be charged during the term of 
                        the loan.
                  (C) Mortgage insurance.--For the purposes of 
                computing the total points and fees under 
                paragraph (4), the total points and fees shall 
                exclude--
                          (i) any premium provided by an agency 
                        of the Federal Government or an agency 
                        of a State;
                          (ii) any amount that is not in excess 
                        of the amount payable under policies in 
                        effect at the time of origination under 
                        section 203(c)(2)(A) of the National 
                        Housing Act (12 U.S.C. 1709(c)(2)(A)), 
                        provided that the premium, charge, or 
                        fee is required to be refundable on a 
                        pro-rated basis and the refund is 
                        automatically issued upon notification 
                        of the satisfaction of the underlying 
                        mortgage loan; and
                          (iii) any premium paid by the 
                        consumer after closing.
  (2)(A) After the 2-year period beginning on the effective 
date of the regulations promulgated under section 155 of the 
Riegle Community Development and Regulatory Improvement Act of 
1994, and no more frequently than biennially after the first 
increase or decrease under this subparagraph, the Bureau may by 
regulation increase or decrease the number of percentage points 
specified in paragraph (1)(A), if the Bureau determines that 
the increase or decrease is--
          (i) consistent with the consumer protections against 
        abusive lending provided by the amendments made by 
        subtitle B of title I of the Riegle Community 
        Development and Regulatory Improvement Act of 1994; and
          (ii) warranted by the need for credit.
          (B) An increase or decrease under subparagraph (A)--
                  (i) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(I) being less than 6 percentage 
                points or greater than 10 percentage points; 
                and
                  (ii) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(II) being less than 8 percentage 
                points or greater than 12 percentage points.
  (C) In determining whether to increase or decrease the number 
of percentage points referred to in subparagraph (A), the 
Bureau shall consult with representatives of consumers, 
including low-income consumers, and lenders.
  (3) The amount specified in paragraph (1)(B)(ii) shall be 
adjusted annually on January 1 by the annual percentage change 
in the Consumer Price Index, as reported on June 1 of the year 
preceding such adjustment.
  (4) For purposes of paragraph (1)(B), points and fees shall 
include--
          (A) all items included in the finance charge, except 
        interest or the time-price differential;
          (B) all compensation paid directly or indirectly by a 
        consumer or creditor to a mortgage originator from any 
        source, including a mortgage originator that is also 
        the creditor in a table-funded transaction;
          (C) each of the charges listed in section 106(e) 
        (except an escrow for future payment of taxes), 
        unless--
                  (i) the charge is reasonable;
                  (ii) the creditor receives no direct or 
                indirect compensation; and
                  (iii) the charge is paid to a third party 
                unaffiliated with the creditor; and
          (D) premiums or other charges payable at or before 
        closing for any credit life, credit disability, credit 
        unemployment, or credit property insurance, or any 
        other accident, loss-of-income, life or health 
        insurance, or any payments directly or indirectly for 
        any debt cancellation or suspension agreement or 
        contract, except that insurance premiums or debt 
        cancellation or suspension fees calculated and paid in 
        full on a monthly basis shall not be considered 
        financed by the creditor;
          (E) the maximum prepayment fees and penalties which 
        may be charged or collected under the terms of the 
        credit transaction;
          (F) all prepayment fees or penalties that are 
        incurred by the consumer if the loan refinances a 
        previous loan made or currently held by the same 
        creditor or an affiliate of the creditor; and
          (G) such other charges as the Bureau determines to be 
        appropriate.
          (5) Calculation of points and fees for open-end 
        consumer credit plans.--In the case of open-end 
        consumer credit plans, points and fees shall be 
        calculated, for purposes of this section and section 
        129, by adding the total points and fees known at or 
        before closing, including the maximum prepayment 
        penalties which may be charged or collected under the 
        terms of the credit transaction, plus the minimum 
        additional fees the consumer would be required to pay 
        to draw down an amount equal to the total credit line.
  (6) This subsection shall not be construed to limit the rate 
of interest or the finance charge that a person may charge a 
consumer for any extension of credit.
  (cc) The term ``reverse mortgage transaction'' means a 
nonrecourse transaction in which a mortgage, deed of trust, or 
equivalent consensual security interest is created against the 
consumer's principal dwelling--
          (1) securing one or more advances; and
          (2) with respect to which the payment of any 
        principal, interest, and shared appreciation or equity 
        is due and payable (other than in the case of default) 
        only after--
                  (A) the transfer of the dwelling;
                  (B) the consumer ceases to occupy the 
                dwelling as a principal dwelling; or
                  (C) the death of the consumer.
  (dd) Definitions Relating to Mortgage Origination and 
Residential Mortgage Loans.--
          (1) Commission.--Unless otherwise specified, the term 
        ``Commission'' means the Federal Trade Commission.
          (2) Mortgage originator.--The term ``mortgage 
        originator''--
                  (A) means any person who, for direct or 
                indirect compensation or gain, or in the 
                expectation of direct or indirect compensation 
                or gain--
                          (i) takes a residential mortgage loan 
                        application;
                          (ii) assists a consumer in obtaining 
                        or applying to obtain a residential 
                        mortgage loan; or
                          (iii) offers or negotiates terms of a 
                        residential mortgage loan;
                  (B) includes any person who represents to the 
                public, through advertising or other means of 
                communicating or providing information 
                (including the use of business cards, 
                stationery, brochures, signs, rate lists, or 
                other promotional items), that such person can 
                or will provide any of the services or perform 
                any of the activities described in subparagraph 
                (A);
                  (C) does not include any person who is--
                          (i) not otherwise described in 
                        subparagraph (A) or (B) and who 
                        performs purely administrative or 
                        clerical tasks on behalf of a person 
                        who is described in any such 
                        subparagraph; or
                          (ii) a retailer of manufactured or 
                        modular homes or an employee of the 
                        retailer if the retailer or employee, 
                        as applicable--
                                  (I) does not receive 
                                compensation or gain for 
                                engaging in activities 
                                described in subparagraph (A) 
                                that is in excess of any 
                                compensation or gain received 
                                in a comparable cash 
                                transaction;
                                  (II) discloses to the 
                                consumer--
                                          (aa) in writing any 
                                        corporate affiliation 
                                        with any creditor; and
                                          (bb) if the retailer 
                                        has a corporate 
                                        affiliation with any 
                                        creditor, at least 1 
                                        unaffiliated creditor; 
                                        and
                                  (III) does not directly 
                                negotiate with the consumer or 
                                lender on loan terms (including 
                                rates, fees, and other costs).
                  (D) does not include a person or entity that 
                only performs real estate brokerage activities 
                and is licensed or registered in accordance 
                with applicable State law, unless such person 
                or entity is compensated by a lender, a 
                mortgage broker, or other mortgage originator 
                or by any agent of such lender, mortgage 
                broker, or other mortgage originator;
                  (E) does not include, with respect to a 
                residential mortgage loan, a person, estate, or 
                trust that provides mortgage financing for the 
                sale of 3 properties in any 12-month period to 
                purchasers of such properties, each of which is 
                owned by such person, estate, or trust and 
                serves as security for the loan, provided that 
                such loan--
                          (i) is not made by a person, estate, 
                        or trust that has constructed, or acted 
                        as a contractor for the construction 
                        of, a residence on the property in the 
                        ordinary course of business of such 
                        person, estate, or trust;
                          (ii) is fully amortizing;
                          (iii) is with respect to a sale for 
                        which the seller determines in good 
                        faith and documents that the buyer has 
                        a reasonable ability to repay the loan;
                          (iv) has a fixed rate or an 
                        adjustable rate that is adjustable 
                        after 5 or more years, subject to 
                        reasonable annual and lifetime 
                        limitations on interest rate increases; 
                        and
                          (v) meets any other criteria the 
                        Bureau may prescribe;
                  (F) does not include the creditor (except the 
                creditor in a table-funded transaction) under 
                paragraph (1), (2), or (4) of section 129B(c); 
                and
                  (G) does not include a servicer or servicer 
                employees, agents and contractors, including 
                but not limited to those who offer or negotiate 
                terms of a residential mortgage loan for 
                purposes of renegotiating, modifying, replacing 
                and subordinating principal of existing 
                mortgages where borrowers are behind in their 
                payments, in default or have a reasonable 
                likelihood of being in default or falling 
                behind.
          (3) Nationwide mortgage licensing system and 
        registry.--The term ``Nationwide Mortgage Licensing 
        System and Registry'' has the same meaning as in the 
        Secure and Fair Enforcement for Mortgage Licensing Act 
        of 2008.
          (4) Other definitions relating to mortgage 
        originator.--For purposes of this subsection, a person 
        ``assists a consumer in obtaining or applying to obtain 
        a residential mortgage loan'' by, among other things, 
        advising on residential mortgage loan terms (including 
        rates, fees, and other costs), preparing residential 
        mortgage loan packages, or collecting information on 
        behalf of the consumer with regard to a residential 
        mortgage loan.
          (5) Residential mortgage loan.--The term 
        ``residential mortgage loan'' means any consumer credit 
        transaction that is secured by a mortgage, deed of 
        trust, or other equivalent consensual security interest 
        on a dwelling or on residential real property that 
        includes a dwelling, other than a consumer credit 
        transaction under an open end credit plan or, for 
        purposes of sections 129B and 129C and section 128(a) 
        (16), (17), (18), and (19), and sections 128(f) and 
        130(k), and any regulations promulgated thereunder, an 
        extension of credit relating to a plan described in 
        section 101(53D) of title 11, United States Code.
          (6) Secretary.--The term ``Secretary'', when used in 
        connection with any transaction or person involved with 
        a residential mortgage loan, means the Secretary of 
        Housing and Urban Development.
          (7) Servicer.--The term ``servicer'' has the same 
        meaning as in section 6(i)(2) of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 
        2605(i)(2)).
  (ee) Bona Fide Discount Points and Prepayment Penalties.--For 
the purposes of determining the amount of points and fees for 
purposes of subsection (aa), either the amounts described in 
paragraph (1) or (2) of the following paragraphs, but not both, 
shall be excluded:
          (1) Up to and including 2 bona fide discount points 
        payable by the consumer in connection with the 
        mortgage, but only if the interest rate from which the 
        mortgage's interest rate will be discounted does not 
        exceed by more than 1 percentage point--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (2) Unless 2 bona fide discount points have been 
        excluded under paragraph (1), up to and including 1 
        bona fide discount point payable by the consumer in 
        connection with the mortgage, but only if the interest 
        rate from which the mortgage's interest rate will be 
        discounted does not exceed by more than 2 percentage 
        points--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (3) For purposes of paragraph (1), the term ``bona 
        fide discount points'' means loan discount points which 
        are knowingly paid by the consumer for the purpose of 
        reducing, and which in fact result in a bona fide 
        reduction of, the interest rate or time-price 
        differential applicable to the mortgage.
          (4) Paragraphs (1) and (2) shall not apply to 
        discount points used to purchase an interest rate 
        reduction unless the amount of the interest rate 
        reduction purchased is reasonably consistent with 
        established industry norms and practices for secondary 
        mortgage market transactions.

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TITLE VI--CONSUMER CREDIT REPORTING

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Sec. 603. Definitions and rules of construction

  (a) Definitions and rules of construction set forth in this 
section are applicable for the purposes of this title.
  (b) The term ``person'' means any individual, partnership, 
corporation, trust, estate, cooperative, association, 
government or governmental subdivision or agency, or other 
entity.
  (c) The term ``consumer'' means an individual.
  (d) Consumer Report.--
          (1) In general.--The term ``consumer report'' means 
        any written, oral, or other communication of any 
        information by a consumer reporting agency bearing on a 
        consumer's credit worthiness, credit standing, credit 
        capacity, character, general reputation, personal 
        characteristics, or mode of living which is used or 
        expected to be used or collected in whole or in part 
        for the purpose of serving as a factor in establishing 
        the consumer's eligibility for--
                  (A) credit or insurance to be used primarily 
                for personal, family, or household purposes;
                  (B) employment purposes; or
                  (C) any other purpose authorized under 
                section 604.
          (2) Exclusions.--Except as provided in paragraph (3), 
        the term ``consumer report'' does not include--
                  (A) subject to section 624, any--
                          (i) report containing information 
                        solely as to transactions or 
                        experiences between the consumer and 
                        the person making the report;
                          (ii) communication of that 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control; or
                          (iii) communication of other 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control, if it is clearly and 
                        conspicuously disclosed to the consumer 
                        that the information may be 
                        communicated among such persons and the 
                        consumer is given the opportunity, 
                        before the time that the information is 
                        initially communicated, to direct that 
                        such information not be communicated 
                        among such persons;
                  (B) any authorization or approval of a 
                specific extension of credit directly or 
                indirectly by the issuer of a credit card or 
                similar device;
                  (C) any report in which a person who has been 
                requested by a third party to make a specific 
                extension of credit directly or indirectly to a 
                consumer conveys his or her decision with 
                respect to such request, if the third party 
                advises the consumer of the name and address of 
                the person to whom the request was made, and 
                such person makes the disclosures to the 
                consumer required under section 615; or
                  (D) a communication described in subsection 
                (o) or (x).
          (3) Restriction on sharing of medical information.--
        Except for information or any communication of 
        information disclosed as provided in section 604(g)(3), 
        the exclusions in paragraph (2) shall not apply with 
        respect to information disclosed to any person related 
        by common ownership or affiliated by corporate control, 
        if the information is--
                  (A) medical information;
                  (B) an individualized list or description 
                based on the payment transactions of the 
                consumer for medical products or services; or
                  (C) an aggregate list of identified consumers 
                based on payment transactions for medical 
                products or services.
  (e) The term ``investigative consumer report'' means a 
consumer report or portion thereof in which information on a 
consumer's character, general reputation, personal 
characteristics, or mode of living is obtained through personal 
interviews with neighbors, friends, or associates of the 
consumer reported on or with others with whom he is acquainted 
or who may have knowledge concerning any such items of 
information. However, such information shall not include 
specific factual information on a consumer's credit record 
obtained directly from a creditor of the consumer or from a 
consumer reporting agency when such information was obtained 
directly from a creditor of the consumer or from the consumer.
  (f) The term ``consumer reporting agency'' means any person 
which, for monetary fees, dues, or on a cooperative nonprofit 
basis, regularly engages in whole or in part in the practice of 
assembling or evaluating consumer credit information or other 
information on consumers for the purpose of furnishing consumer 
reports to third parties, and which uses any means or facility 
of interstate commerce for the purpose of preparing or 
furnishing consumer reports.
  (g) The term ``file'', when used in connection with 
information on any consumer, means all of the information on 
that consumer recorded and retained by a consumer reporting 
agency regardless of how the information is stored.
  (h) The term ``employment purposes'' when used in connection 
with a consumer report means a report used for the purpose of 
evaluating a consumer for employment, promotion, reassignment 
or retention as an employee.
  (i) Medical Information.--The term ``medical information''--
          (1) means information or data, whether oral or 
        recorded, in any form or medium, created by or derived 
        from a health care provider or the consumer, that 
        relates to--
                  (A) the past, present, or future physical, 
                mental, or behavioral health or condition of an 
                individual;
                  (B) the provision of health care to an 
                individual; or
                  (C) the payment for the provision of health 
                care to an individual.
          (2) does not include the age or gender of a consumer, 
        demographic information about the consumer, including a 
        consumer's residence address or e-mail address, or any 
        other information about a consumer that does not relate 
        to the physical, mental, or behavioral health or 
        condition of a consumer, including the existence or 
        value of any insurance policy.
  (j) Definitions Relating to Child Support Obligations.--
          (1) Overdue support.--The term ``overdue support'' 
        has the meaning given to such term in section 466(e) of 
        the Social Security Act.
          (2) State or local child support enforcement 
        agency.--The term ``State or local child support 
        enforcement agency'' means a State or local agency 
        which administers a State or local program for 
        establishing and enforcing child support obligations.
  (k) Adverse Action.--
          (1) Actions included.--The term ``adverse action''--
                  (A) has the same meaning as in section 
                701(d)(6) of the Equal Credit Opportunity Act; 
                and
                  (B) means--
                          (i) a denial or cancellation of, an 
                        increase in any charge for, or a 
                        reduction or other adverse or 
                        unfavorable change in the terms of 
                        coverage or amount of, any insurance, 
                        existing or applied for, in connection 
                        with the underwriting of insurance;
                          (ii) a denial of employment or any 
                        other decision for employment purposes 
                        that adversely affects any current or 
                        prospective employee;
                          (iii) a denial or cancellation of, an 
                        increase in any charge for, or any 
                        other adverse or unfavorable change in 
                        the terms of, any license or benefit 
                        described in section 604(a)(3)(D); and
                          (iv) an action taken or determination 
                        that is--
                                  (I) made in connection with 
                                an application that was made 
                                by, or a transaction that was 
                                initiated by, any consumer, or 
                                in connection with a review of 
                                an account under section 
                                604(a)(3)(F)(ii); and
                                  (II) adverse to the interests 
                                of the consumer.
          (2) Applicable findings, decisions, commentary, and 
        orders.--For purposes of any determination of whether 
        an action is an adverse action under paragraph (1)(A), 
        all appropriate final findings, decisions, commentary, 
        and orders issued under section 701(d)(6) of the Equal 
        Credit Opportunity Act by the Bureau or any court shall 
        apply.
  (l) Firm Offer of Credit or Insurance.--The term ``firm offer 
of credit or insurance'' means any offer of credit or insurance 
to a consumer that will be honored if the consumer is 
determined, based on information in a consumer report on the 
consumer, to meet the specific criteria used to select the 
consumer for the offer, except that the offer may be further 
conditioned on one or more of the following:
          (1) The consumer being determined, based on 
        information in the consumer's application for the 
        credit or insurance, to meet specific criteria bearing 
        on credit worthiness or insurability, as applicable, 
        that are established--
                  (A) before selection of the consumer for the 
                offer; and
                  (B) for the purpose of determining whether to 
                extend credit or insurance pursuant to the 
                offer.
          (2) Verification--
                  (A) that the consumer continues to meet the 
                specific criteria used to select the consumer 
                for the offer, by using information in a 
                consumer report on the consumer, information in 
                the consumer's application for the credit or 
                insurance, or other information bearing on the 
                credit worthiness or insurability of the 
                consumer; or
                  (B) of the information in the consumer's 
                application for the credit or insurance, to 
                determine that the consumer meets the specific 
                criteria bearing on credit worthiness or 
                insurability.
          (3) The consumer furnishing any collateral that is a 
        requirement for the extension of the credit or 
        insurance that was--
                  (A) established before selection of the 
                consumer for the offer of credit or insurance; 
                and
                  (B) disclosed to the consumer in the offer of 
                credit or insurance.
  (m) Credit or Insurance Transaction That Is Not Initiated by 
the Consumer.--The term ``credit or insurance transaction that 
is not initiated by the consumer'' does not include the use of 
a consumer report by a person with which the consumer has an 
account or insurance policy, for purposes of--
          (1) reviewing the account or insurance policy; or
          (2) collecting the account.
  (n) State.--The term ``State'' means any State, the 
Commonwealth of Puerto Rico, the District of Columbia, and any 
territory or possession of the United States.
  (o) Excluded Communications.--A communication is described in 
this subsection if it is a communication--
          (1) that, but for subsection (d)(2)(D), would be an 
        investigative consumer report;
          (2) that is made to a prospective employer for the 
        purpose of--
                  (A) procuring an employee for the employer; 
                or
                  (B) procuring an opportunity for a natural 
                person to work for the employer;
          (3) that is made by a person who regularly performs 
        such procurement;
          (4) that is not used by any person for any purpose 
        other than a purpose described in subparagraph (A) or 
        (B) of paragraph (2); and
          (5) with respect to which--
                  (A) the consumer who is the subject of the 
                communication--
                          (i) consents orally or in writing to 
                        the nature and scope of the 
                        communication, before the collection of 
                        any information for the purpose of 
                        making the communication;
                          (ii) consents orally or in writing to 
                        the making of the communication to a 
                        prospective employer, before the making 
                        of the communication; and
                          (iii) in the case of consent under 
                        clause (i) or (ii) given orally, is 
                        provided written confirmation of that 
                        consent by the person making the 
                        communication, not later than 3 
                        business days after the receipt of the 
                        consent by that person;
                  (B) the person who makes the communication 
                does not, for the purpose of making the 
                communication, make any inquiry that if made by 
                a prospective employer of the consumer who is 
                the subject of the communication would violate 
                any applicable Federal or State equal 
                employment opportunity law or regulation; and
                  (C) the person who makes the communication--
                          (i) discloses in writing to the 
                        consumer who is the subject of the 
                        communication, not later than 5 
                        business days after receiving any 
                        request from the consumer for such 
                        disclosure, the nature and substance of 
                        all information in the consumer's file 
                        at the time of the request, except that 
                        the sources of any information that is 
                        acquired solely for use in making the 
                        communication and is actually used for 
                        no other purpose, need not be disclosed 
                        other than under appropriate discovery 
                        procedures in any court of competent 
                        jurisdiction in which an action is 
                        brought; and
                          (ii) notifies the consumer who is the 
                        subject of the communication, in 
                        writing, of the consumer's right to 
                        request the information described in 
                        clause (i).
  (p) Consumer Reporting Agency That Compiles and Maintains 
Files on Consumers on a Nationwide Basis.--The term ``consumer 
reporting agency that compiles and maintains files on consumers 
on a nationwide basis'' means a consumer reporting agency that 
regularly engages in the practice of assembling or evaluating, 
and maintaining, for the purpose of furnishing consumer reports 
to third parties bearing on a consumer's credit worthiness, 
credit standing, or credit capacity, each of the following 
regarding consumers residing nationwide:
          (1) Public record information.
          (2) Credit account information from persons who 
        furnish that information regularly and in the ordinary 
        course of business.
  (q) Definitions Relating to Fraud Alerts.--
          (1) Active duty military consumer.--The term ``active 
        duty military consumer'' means a consumer in military 
        service who--
                  (A) is on active duty (as defined in section 
                101(d)(1) of title 10, United States Code) or 
                is a reservist performing duty under a call or 
                order to active duty under a provision of law 
                referred to in section 101(a)(13) of title 10, 
                United States Code; and
                  (B) is assigned to service away from the 
                usual duty station of the consumer.
          (2) Fraud alert; active duty alert.--The terms 
        ``fraud alert'' and ``active duty alert'' mean a 
        statement in the file of a consumer that--
                  (A) notifies all prospective users of a 
                consumer report relating to the consumer that 
                the consumer may be a victim of fraud, 
                including identity theft, or is an active duty 
                military consumer, as applicable; and
                  (B) is presented in a manner that facilitates 
                a clear and conspicuous view of the statement 
                described in subparagraph (A) by any person 
                requesting such consumer report.
          (3) Identity theft.--The term ``identity theft'' 
        means a fraud committed using the identifying 
        information of another person, subject to such further 
        definition as the Bureau may prescribe, by regulation.
          (4) Identity theft report.--The term ``identity theft 
        report'' has the meaning given that term by rule of the 
        Bureau, and means, at a minimum, a report--
                  (A) that alleges an identity theft;
                  (B) that is a copy of an official, valid 
                report filed by a consumer with an appropriate 
                Federal, State, or local law enforcement 
                agency, including the United States Postal 
                Inspection Service, or such other government 
                agency deemed appropriate by the Bureau; and
                  (C) the filing of which subjects the person 
                filing the report to criminal penalties 
                relating to the filing of false information if, 
                in fact, the information in the report is 
                false.
          (5) New credit plan.--The term ``new credit plan'' 
        means a new account under an open end credit plan (as 
        defined in section 103(i) of the Truth in Lending Act) 
        or a new credit transaction not under an open end 
        credit plan.
  (r) Credit and Debit Related Terms--
          (1) Card issuer.--The term ``card issuer'' means--
                  (A) a credit card issuer, in the case of a 
                credit card; and
                  (B) a debit card issuer, in the case of a 
                debit card.
          (2) Credit card.--The term ``credit card'' has the 
        same meaning as in section 103 of the Truth in Lending 
        Act.
          (3) Debit card.--The term ``debit card'' means any 
        card issued by a financial institution to a consumer 
        for use in initiating an electronic fund transfer from 
        the account of the consumer at such financial 
        institution, for the purpose of transferring money 
        between accounts or obtaining money, property, labor, 
        or services.
          (4) Account and electronic fund transfer.--The terms 
        ``account'' and ``electronic fund transfer'' have the 
        same meanings as in section 903 of the Electronic Fund 
        Transfer Act.
          (5) Credit and creditor.--The terms ``credit'' and 
        ``creditor'' have the same meanings as in section 702 
        of the Equal Credit Opportunity Act.
  (s) Federal Banking Agency.--The term ``Federal banking 
agency'' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act.
  (t) Financial Institution.--The term ``financial 
institution'' means a State or National bank, a State or 
Federal savings and loan association, a mutual savings bank, a 
State or Federal credit union, or any other person that, 
directly or indirectly, holds a transaction account (as defined 
in section 19(b) of the Federal Reserve Act) belonging to a 
consumer.
  (u) Reseller.--The term ``reseller'' means a consumer 
reporting agency that--
          (1) assembles and merges information contained in the 
        database of another consumer reporting agency or 
        multiple consumer reporting agencies concerning any 
        consumer for purposes of furnishing such information to 
        any third party, to the extent of such activities; and
          (2) does not maintain a database of the assembled or 
        merged information from which new consumer reports are 
        produced.
  (v) Commission.--The term ``Commission'' means the Bureau.
  (w) The term ``Bureau'' means the [Bureau of Consumer 
Financial Protection] Consumer Financial Protection Bureau.
  (x) Nationwide Specialty Consumer Reporting Agency.--The term 
``nationwide specialty consumer reporting agency'' means a 
consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis relating to--
          (1) medical records or payments;
          (2) residential or tenant history;
          (3) check writing history;
          (4) employment history; or
          (5) insurance claims.
  (y) Exclusion of Certain Communications for Employee 
Investigations.--
          (1) Communications described in this subsection.--A 
        communication is described in this subsection if--
                  (A) but for subsection (d)(2)(D), the 
                communication would be a consumer report;
                  (B) the communication is made to an employer 
                in connection with an investigation of--
                          (i) suspected misconduct relating to 
                        employment; or
                          (ii) compliance with Federal, State, 
                        or local laws and regulations, the 
                        rules of a self-regulatory 
                        organization, or any preexisting 
                        written policies of the employer;
                  (C) the communication is not made for the 
                purpose of investigating a consumer's credit 
                worthiness, credit standing, or credit 
                capacity; and
                  (D) the communication is not provided to any 
                person except--
                          (i) to the employer or an agent of 
                        the employer;
                          (ii) to any Federal or State officer, 
                        agency, or department, or any officer, 
                        agency, or department of a unit of 
                        general local government;
                          (iii) to any self-regulatory 
                        organization with regulatory authority 
                        over the activities of the employer or 
                        employee;
                          (iv) as otherwise required by law; or
                          (v) pursuant to section 608.
          (2) Subsequent disclosure.--After taking any adverse 
        action based in whole or in part on a communication 
        described in paragraph (1), the employer shall disclose 
        to the consumer a summary containing the nature and 
        substance of the communication upon which the adverse 
        action is based, except that the sources of information 
        acquired solely for use in preparing what would be but 
        for subsection (d)(2)(D) an investigative consumer 
        report need not be disclosed.
          (3) Self-regulatory organization defined.--For 
        purposes of this subsection, the term ``self-regulatory 
        organization'' includes any self-regulatory 
        organization (as defined in section 3(a)(26) of the 
        Securities Exchange Act of 1934), any entity 
        established under title I of the Sarbanes-Oxley Act of 
        2002, any board of trade designated by the Commodity 
        Futures Trading Commission, and any futures association 
        registered with such Commission.

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TITLE VII--EQUAL CREDIT OPPORTUNITY

           *       *       *       *       *       *       *


Sec. 702. Definitions

  (a) The definitions and rules of construction set forth in 
this section are applicable for the purposes of this title.
  (b) The term ``applicant'' means any person who applies to a 
creditor directly for an extension, renewal, or continuation of 
credit, or applies to a creditor indirectly by use of an 
existing credit plan for an amount exceeding a previously 
established credit limit.
  (c) The term ``Bureau'' means the [Bureau of Consumer 
Financial Protection] Consumer Financial Protection Bureau.
  (d) The term ``credit'' means the right granted by a creditor 
to a debtor to defer payment of debt or to incur debts and 
defer its payment or to purchase property or services and defer 
payment therefor.
  (e) The term ``creditor'' means any person who regularly 
extends, renews, or continues credit; any person who regularly 
arranges for the extension, renewal, or continuation of credit; 
or any assignee of an original creditor who participates in the 
decision to extend, renew, or continue credit.
  (f) The term ``person'' means a natural person, a 
corporation, government or governmental subdivision or agency, 
trust, estate, partnership, cooperative, or association.
  (g) Any reference to any requirement imposed under this title 
or any provision thereof includes reference to the regulations 
of the Bureau under this title or the provision thereof in 
question.

           *       *       *       *       *       *       *


Sec. 706. Civil liability

  (a) Any creditor who fails to comply with any requirement 
imposed under this title shall be liable to the aggrieved 
applicant for any actual damages sustained by such applicant 
acting either in an individual capacity or as a member of a 
class.
  (b) Any creditor, other than a government or governmental 
subdivision or agency, who fails to comply with any requirement 
imposed under this title shall be liable to the aggrieved 
applicant for punitive damages in an amount not greater than 
$10,000, in addition to any actual damages provided in 
subsection (a), except that in the case of a class action the 
total recovery under this subsection shall not exceed the 
lesser of $500,000 or 1 per centum of the net worth of the 
creditor. In determining the amount of such damages in any 
action, the court shall consider, among other relevant factors, 
the amount of any actual damages awarded, the frequency and 
persistence of failures of compliance by the creditor, the 
resources of the creditor, the number of persons adversely 
affected, and the extent to which the creditor's failure of 
compliance was intentional.
  (c) Upon application by an aggrieved applicant, the 
appropriate United States district court or any other court of 
competent jurisdiction may grant such equitable and declaratory 
relief as is necessary to enforce the requirements imposed 
under this title.
  (d) In the case of any successful action under subsection 
(a), (b), or (c), the costs of the action, together with a 
reasonable attorney's fee as determined by the court, shall be 
added to any damages awarded by the court under such 
subsection.
  (e) No provision of this title imposing liability shall apply 
to any act done or omitted in good faith in conformity with any 
official rule, regulation, or interpretation thereof by the 
Bureau or in conformity with any interpretation or approval by 
an official or employee of the [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau duly 
authorized by the Bureau to issue such interpretations or 
approvals under such procedures as the Bureau may prescribe 
therefor, notwithstanding that after such act or omission has 
occurred, such rule, regulation, interpretation, or approval is 
amended, rescinded, or determined by judicial or other 
authority to be invalid for any reason.
  (f) Any action under this section may be brought in the 
appropriate United States district court without regard to the 
amount in controversy, or in any other court of competent 
jurisdiction. No such action shall be brought later than 5 
years after the date of the occurrence of the violation, except 
that--
          (1) whenever any agency having responsibility for 
        administrative enforcement under section 704 commences 
        an enforcement proceeding within 5 years after the date 
        of the occurrence of the violation,
          (2) whenever the Attorney General commences a civil 
        action under this section within 5 years after the date 
        of the occurrence of the violation,
then any applicant who has been a victim of the discrimination 
which is the subject of such proceeding or civil action may 
bring an action under this section not later than one year 
after the commencement of that proceeding or action.
  (g) The agencies having responsibility for administrative 
enforcement under section 704, if unable to obtain compliance 
with section 701, are authorized to refer the matter to the 
Attorney General with a recommendation that an appropriate 
civil action be instituted. Each agency referred to in 
paragraphs (1), (2), and (9) of section 704(a) shall refer the 
matter to the Attorney General whenever the agency has reason 
to believe that 1 or more creditors has engaged in a pattern or 
practice of discouraging or denying applications for credit in 
violation of section 701(a). Each such agency may refer the 
matter to the Attorney General whenever the agency has reason 
to believe that 1 or more creditors has violated section 
701(a).
  (h) When a matter is referred to the Attorney General 
pursuant to subsection (g), or whenever he has reason to 
believe that one or more creditors are engaged in a pattern or 
practice in violation of this title, the Attorney General may 
bring a civil action in any appropriate United States district 
court for such relief as may be appropriate, including actual 
and punitive damages and injunctive relief.
  (i) No person aggrieved by a violation of this title and by a 
violation of section 805 of the Civil Rights Act of 1968 shall 
recover under this title and section 812 of the Civil Rights 
Act of 1968, if such violation is based on the same 
transaction.
  (j) Nothing in this title shall be construed to prohibit the 
discovery of a creditor's credit granting standards under 
appropriate discovery procedures in the court or agency in 
which an action or proceeding is brought.
  (k) Notice to HUD of Violations.--Whenever an agency referred 
to in paragraph (1), (2), or (3) of section 704(a)--
          (1) has reason to believe, as a result of receiving a 
        consumer complaint, conducting a consumer compliance 
        examination, or otherwise, that a violation of this 
        title has occurred;
          (2) has reason to believe that the alleged violation 
        would be a violation of the Fair Housing Act; and
          (3) does not refer the matter to the Attorney General 
        pursuant to subsection (g),
the agency shall notify the Secretary of Housing and Urban 
Development of the violation, and shall notify the applicant 
that the Secretary of Housing and Urban Development has been 
notified of the alleged violation and that remedies for the 
violation may be available under the Fair Housing Act.

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TITLE VIII--DEBT COLLECTION PRACTICES

           *       *       *       *       *       *       *


Sec. 803. Definitions

   As used in this title--
          (1) The term ``Bureau'' means the [Bureau of Consumer 
        Financial Protection] Consumer Financial Protection 
        Bureau.
          (2) The term ``communication'' means the conveying of 
        information regarding a debt directly or indirectly to 
        any person through any medium.
          (3) The term ``consumer'' means any natural person 
        obligated or allegedly obligated to pay any debt.
          (4) The term ``creditor'' means any person who offers 
        or extends credit creating a debt or to whom a debt is 
        owed, but such term does not include any person to the 
        extent that he receives an assignment or transfer of a 
        debt in default solely for the purpose of facilitating 
        collection of such debt for another.
          (5) The term ``debt'' means any obligation or alleged 
        obligation of a consumer to pay money arising out of a 
        transaction in which the money, property, insurance, or 
        services which are the subject of the transaction are 
        primarily for personal, family, or household purposes, 
        whether or not such obligation has been reduced to 
        judgment.
          (6) The term ``debt collector'' means any person who 
        uses any instrumentality of interstate commerce or the 
        mails in any business the principal purpose of which is 
        the collection of any debts, or who regularly collects 
        or attempts to collect, directly or indirectly, debts 
        owed or due or asserted to be owed or due another. 
        Notwithstanding the exclusion provided by clause (F) of 
        the last sentence of this paragraph, the term includes 
        any creditor who, in the process of collecting his own 
        debts, uses any name other than his own which would 
        indicate that a third person is collecting or 
        attempting to collect such debts. For the purpose of 
        section 808(6), such term also includes any person who 
        uses any instrumentality of interstate commerce or the 
        mails in any business the principal purpose of which is 
        the enforcement of security interests. The term does 
        not include--
                  (A) any officer or employee of a creditor 
                while, in the name of the creditor, collecting 
                debts for such creditor;
                  (B) any person while acting as a debt 
                collector for another person, both of whom are 
                related by common ownership or affiliated by 
                corporate control, if the person acting as a 
                debt collector does so only for persons to whom 
                it is so related or affilated and if the 
                principal business of such person is not the 
                collection of debts;
                  (C) any officer or employee of the United 
                States or any State to the extent that 
                collecting or attempting to collect any debt is 
                in the performance of his official duties;
                  (D) any person while serving or attempting to 
                serve legal process on any other person in 
                connection with the judicial enforcement of any 
                debt;
                  (E) any nonprofit organization which, at the 
                request of consumers, performs bona fide 
                consumer credit counseling and assists 
                consumers in the liquidation of their debts by 
                receiving payments from such consumers and 
                distributing such amounts to creditors;
                  (F) any person collecting or attempting to 
                collect any debt owed or due or asserted to be 
                owed or due another to the extent such activity 
                (i) is incidental to a bona fide fiduciary 
                obligation or a bona fide escrow arrangement; 
                (ii) concerns a debt which was originated by 
                such person; (iii) concerns a debt which was 
                not in default at the time it was obtained by 
                such person; or (iv) concerns a debt obtained 
                by such person as a secured party in a 
                commercial credit transaction involving the 
                creditor.
          (7) The term ``location information'' means a 
        consumer's place of abode and his telephone number at 
        such place, or his place of employment.
          (8) The term ``State'' means any State, territory, or 
        possession of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, or any 
        political subdivision of any of the foregoing.

           *       *       *       *       *       *       *


TITLE IX--ELECTRONIC FUND TRANSFERS

           *       *       *       *       *       *       *


Sec. 903. Definitions

   As used in this title--
          (1) the term ``accepted card or other means of 
        access'' means a card, code, or other means of access 
        to a consumer's account for the purpose of initiating 
        electronic fund transfers when the person to whom such 
        card or other means of access was issued has requested 
        and received or has signed or has used, or authorized 
        another to use, such card or other means of access for 
        the purpose of transferring money between accounts or 
        obtaining money, property, labor, or services;
          (2) the term ``account'' means a demand deposit, 
        savings deposit, or other asset account (other than an 
        occasional or incidental credit balance in an open end 
        credit plan as defined in section 103(i) of this Act), 
        as described in regulations of the Bureau, established 
        primarily for personal, family, or household purposes, 
        but such term does not include an account held by a 
        financial institution pursuant to a bona fide trust 
        agreement;
          (4) the term ``Board'' means the Board of Governors 
        of the Federal Reserve System;
          (4) the term ``Bureau'' means the [Bureau of Consumer 
        Financial Protection] Consumer Financial Protection 
        Bureau;
          (5) the term ``business day'' means any day on which 
        the offices of the consumer's financial institution 
        involved in an electronic fund transfer are open to the 
        public for carrying on substantially all of its 
        business functions;
          (6) the term ``consumer'' means a natural person;
          (7) the term ``electronic fund transfer'' means any 
        transfer of funds, other than a transaction originated 
        by check, draft, or similar paper instrument, which is 
        initiated through an electronic terminal, telephonic 
        instrument, or computer or magnetic tape so as to 
        order, instruct, or authorize a financial institution 
        to debit or credit an account. Such term includes, but 
        is not limited to, point-of-sale transfers, automated 
        teller machine transactions, direct deposits or 
        withdrawals of funds, and transfers initiated by 
        telephone. Such term does not include--
                  (A) any check guarantee or authorization 
                service which does not directly result in a 
                debit or credit to a consumer's account:
                  (B) any transfer of funds, other than those 
                processed by automated clearinghouse, made by a 
                financial institution on behalf of a consumer 
                by means of a service that transfers funds held 
                at either Federal Reserve banks or other 
                depository institutions and which is not 
                designed primarily to transfer funds on behalf 
                of a consumer;
                  (C) any transaction the primary purpose of 
                which is the purchase or sale of securities or 
                commodities through a broker-dealer registered 
                with or regulated by the Securities and 
                Exchange Commission;
                  (D) any automatic transfer from a savings 
                account to a demand deposit account pursuant to 
                an agreement between a consumer and a financial 
                institution for the purpose of covering an 
                overdraft or maintaining an agreed upon minimum 
                balance in the consumer's demand deposit 
                account; or
                  (E) any transfer of funds which is initiated 
                by a telephone conversation between a consumer 
                and an officer or employee of a financial 
                institution which is not pursuant to a 
                prearranged plan and under which periodic or 
                recurring transfers are not contemplated;
        as determined under regulations of the Bureau;
          (8) the term ``electronic terminal'' means an 
        electronic device, other than a telephone operated by a 
        consumer, through which a consumer may initiate an 
        electronic fund transfer. Such term includes, but is 
        not limited to, point-of-sale terminals, automated 
        teller machines, and cash dispensing machines;
          (9) the term ``financial institution'' means a State 
        or National bank, a State or Federal savings and loan 
        association, a mutual savings bank, a State or Federal 
        credit union, or any other person who, directly or 
        indirectly, holds an account belonging to a consumer;
          (10) the term ``preauthorized electronic fund 
        transfer'' means an electronic fund transfer authorized 
        in advance to recur at substantially regular intervals;
          (11) the term ``State'' means any State, territory, 
        or possession of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, or any 
        political subdivision of any of the foregoing; and
          (12) the term ``unauthorized electronic fund 
        transfer'' means an electronic fund transfer from a 
        consumer's account initiated by a person other than the 
        consumer without actual authority to initiate such 
        transfer and from which the consumer receives no 
        benefit, but the term does not include any electronic 
        fund transfer (A) initiated by a person other than the 
        consumer who was furnished with the card, code, or 
        other means of access to such consumer's account by 
        such consumer, unless the consumer has notified the 
        financial institution involved that transfers by such 
        other person are no longer authorized, (B) initiated 
        with fraudulent intent by the consumer or any person 
        acting in concert with the consumer, or (C) which 
        constitutes an error committed by a financial 
        institution.

           *       *       *       *       *       *       *


Sec. 916. Civil liability

  (a) Except as otherwise provided by this section and section 
910, any person who fails to comply with any provision of this 
title with respect to any consumer, except for an error 
resolved in accordance with section 908, is liable to such 
consumer in an amount equal to the sum of--
          (1) any actual damage sustained by such consumer as a 
        result of such failure;
          (2)(A) in the case of an individual action, an amount 
        not less than $100 nor greater than $1,000; or
          (B) in the case of a class action, such amount as the 
        court may allow, except that (i) as to each member of 
        the class no minimum recovery shall be applicable, and 
        (ii) the total recovery under this subparagraph in any 
        class action or series of class actions arising out of 
        the same failure to comply by the same person shall not 
        be more than the lesser of $500,000 or 1 per centum of 
        the net worth of the defendant; and
          (3) in the case of any successful action to enforce 
        the foregoing liability, the costs of the action, 
        together with a reasonable attorney's fee as determined 
        by the court.
  (b) In determining the amount of liability in any action 
under subsection (a), the court shall consider, among other 
relevant factors--
          (1) in any individual action under subsection 
        (a)(2)(A), the frequency and persistence of 
        noncompliance, the nature of such noncompliance, and 
        the extent to which the noncompliance was intentional; 
        or
          (2) in any class action under subsection (a)(2)(B), 
        the frequency and persistence of noncompliance, the 
        nature of such noncompliance, the resources of the 
        defendant, the number of persons adversely affected, 
        and the extent to which the noncompliance was 
        intentional.
  (c) Except as provided in section 910, a person may not be 
held liable in any action brought under this section for a 
violation of this title if the person shows by a preponderance 
of evidence that the violation was not intentional and resulted 
from a bona fide error notwithstanding the maintenance of 
procedures reasonably adapted to avoid any such error.
  (d) No provision of this section or section 916 imposing any 
liability shall apply to--
          (1) any act done or omitted in good faith in 
        conformity with any rule, regulation, or interpretation 
        thereof by the Bureau or the Board or in conformity 
        with any interpretation or approval by an official or 
        employee of the [Bureau of Consumer Financial 
        Protection] Consumer Financial Protection Bureau or the 
        Federal Reserve System duly authorized by the Bureau or 
        the Board to issue such interpretations or approvals 
        under such procedures as the Bureau or the Board may 
        prescribe therefor; or
          (2) any failure to make disclosure in proper form if 
        a financial institution utilized an appropriate model 
        clause issued by the Bureau or the Board,
notwithstanding that after such act, omission, or failure has 
occurred, such rule, regulation, approval, or model clause is 
amended, rescinded, or determined by judicial or other 
authority to be invalid for any reason.
  (e) A person has no liability under this section for any 
failure to comply with any requirement under this title if, 
prior to the institution of an action under this section, the 
person notifies the consumer concerned of the failure, complies 
with the requirements of this title, and makes an appropriate 
adjustment to the consumer's account and pays actual damages 
or, where applicable, damages in accordance with section 910.
  (f) On a finding by the court that an unsuccessful action 
under this section was brought in bad faith or for purposes of 
harassment, the court shall award to the defendant attorney's 
fees reasonable in relation to the work expended and costs.
  (g) Without regard to the amount in controversy, any action 
under this section may be brought in any United States district 
court, or in any other court of competent jurisdiction, within 
one year from the date of the occurrence of the violation.

           *       *       *       *       *       *       *


SEC. 921. REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS.

  (a) Reasonable Interchange Transaction Fees for Electronic 
Debit Transactions.--
          (1) Regulatory authority over interchange transaction 
        fees.--The Board may prescribe regulations, pursuant to 
        section 553 of title 5, United States Code, regarding 
        any interchange transaction fee that an issuer may 
        receive or charge with respect to an electronic debit 
        transaction, to implement this subsection (including 
        related definitions), and to prevent circumvention or 
        evasion of this subsection.
          (2) Reasonable interchange transaction fees.--The 
        amount of any interchange transaction fee that an 
        issuer may receive or charge with respect to an 
        electronic debit transaction shall be reasonable and 
        proportional to the cost incurred by the issuer with 
        respect to the transaction.
          (3) Rulemaking required.--
                  (A) In general.--The Board shall prescribe 
                regulations in final form not later than 9 
                months after the date of enactment of the 
                Consumer Financial Protection Act of 2010, to 
                establish standards for assessing whether the 
                amount of any interchange transaction fee 
                described in paragraph (2) is reasonable and 
                proportional to the cost incurred by the issuer 
                with respect to the transaction.
                  (B) Information collection.--The Board may 
                require any issuer (or agent of an issuer) or 
                payment card network to provide the Board with 
                such information as may be necessary to carry 
                out the provisions of this subsection and the 
                Board, in issuing rules under subparagraph (A) 
                and on at least a bi-annual basis thereafter, 
                shall disclose such aggregate or summary 
                information concerning the costs incurred, and 
                interchange transaction fees charged or 
                received, by issuers or payment card networks 
                in connection with the authorization, clearance 
                or settlement of electronic debit transactions 
                as the Board considers appropriate and in the 
                public interest.
          (4) Considerations; consultation.--In prescribing 
        regulations under paragraph (3)(A), the Board shall--
                  (A) consider the functional similarity 
                between--
                          (i) electronic debit transactions; 
                        and
                          (ii) checking transactions that are 
                        required within the Federal Reserve 
                        bank system to clear at par;
                  (B) distinguish between--
                          (i) the incremental cost incurred by 
                        an issuer for the role of the issuer in 
                        the authorization, clearance, or 
                        settlement of a particular electronic 
                        debit transaction, which cost shall be 
                        considered under paragraph (2); and
                          (ii) other costs incurred by an 
                        issuer which are not specific to a 
                        particular electronic debit 
                        transaction, which costs shall not be 
                        considered under paragraph (2); and
                  (C) consult, as appropriate, with the 
                Comptroller of the Currency, the Board of 
                Directors of the Federal Deposit Insurance 
                Corporation, the Director of the Office of 
                Thrift Supervision, the National Credit Union 
                Administration Board, the Administrator of the 
                Small Business Administration, and the Director 
                of the [Bureau of Consumer Financial 
                Protection] Consumer Financial Protection 
                Bureau.
          (5) Adjustments to interchange transaction fees for 
        fraud prevention costs.--
                  (A) Adjustments.--The Board may allow for an 
                adjustment to the fee amount received or 
                charged by an issuer under paragraph (2), if--
                          (i) such adjustment is reasonably 
                        necessary to make allowance for costs 
                        incurred by the issuer in preventing 
                        fraud in relation to electronic debit 
                        transactions involving that issuer; and
                          (ii) the issuer complies with the 
                        fraud-related standards established by 
                        the Board under subparagraph (B), which 
                        standards shall--
                                  (I) be designed to ensure 
                                that any fraud-related 
                                adjustment of the issuer is 
                                limited to the amount described 
                                in clause (i) and takes into 
                                account any fraud-related 
                                reimbursements (including 
                                amounts from charge-backs) 
                                received from consumers, 
                                merchants, or payment card 
                                networks in relation to 
                                electronic debit transactions 
                                involving the issuer; and
                                  (II) require issuers to take 
                                effective steps to reduce the 
                                occurrence of, and costs from, 
                                fraud in relation to electronic 
                                debit transactions, including 
                                through the development and 
                                implementation of cost-
                                effective fraud prevention 
                                technology.
                  (B) Rulemaking required.--
                          (i) In general.--The Board shall 
                        prescribe regulations in final form not 
                        later than 9 months after the date of 
                        enactment of the Consumer Financial 
                        Protection Act of 2010, to establish 
                        standards for making adjustments under 
                        this paragraph.
                          (ii) Factors for consideration.--In 
                        issuing the standards and prescribing 
                        regulations under this paragraph, the 
                        Board shall consider--
                                  (I) the nature, type, and 
                                occurrence of fraud in 
                                electronic debit transactions;
                                  (II) the extent to which the 
                                occurrence of fraud depends on 
                                whether authorization in an 
                                electronic debit transaction is 
                                based on signature, PIN, or 
                                other means;
                                  (III) the available and 
                                economical means by which fraud 
                                on electronic debit 
                                transactions may be reduced;
                                  (IV) the fraud prevention and 
                                data security costs expended by 
                                each party involved in 
                                electronic debit transactions 
                                (including consumers, persons 
                                who accept debit cards as a 
                                form of payment, financial 
                                institutions, retailers and 
                                payment card networks);
                                  (V) the costs of fraudulent 
                                transactions absorbed by each 
                                party involved in such 
                                transactions (including 
                                consumers, persons who accept 
                                debit cards as a form of 
                                payment, financial 
                                institutions, retailers and 
                                payment card networks);
                                  (VI) the extent to which 
                                interchange transaction fees 
                                have in the past reduced or 
                                increased incentives for 
                                parties involved in electronic 
                                debit transactions to reduce 
                                fraud on such transactions; and
                                  (VII) such other factors as 
                                the Board considers 
                                appropriate.
          (6) Exemption for small issuers.--
                  (A) In general.--This subsection shall not 
                apply to any issuer that, together with its 
                affiliates, has assets of less than 
                $10,000,000,000, and the Board shall exempt 
                such issuers from regulations prescribed under 
                paragraph (3)(A).
                  (B) Definition.--For purposes of this 
                paragraph, the term ``issuer'' shall be limited 
                to the person holding the asset account that is 
                debited through an electronic debit 
                transaction.
          (7) Exemption for government-administered payment 
        programs and reloadable prepaid cards.--
                  (A) In general.--This subsection shall not 
                apply to an interchange transaction fee charged 
                or received with respect to an electronic debit 
                transaction in which a person uses--
                          (i) a debit card or general-use 
                        prepaid card that has been provided to 
                        a person pursuant to a Federal, State 
                        or local government-administered 
                        payment program, in which the person 
                        may only use the debit card or general-
                        use prepaid card to transfer or debit 
                        funds, monetary value, or other assets 
                        that have been provided pursuant to 
                        such program; or
                          (ii) a plastic card, payment code, or 
                        device that is--
                                  (I) linked to funds, monetary 
                                value, or assets which are 
                                purchased or loaded on a 
                                prepaid basis;
                                  (II) not issued or approved 
                                for use to access or debit any 
                                account held by or for the 
                                benefit of the card holder 
                                (other than a subaccount or 
                                other method of recording or 
                                tracking funds purchased or 
                                loaded on the card on a prepaid 
                                basis);
                                  (III) redeemable at multiple, 
                                unaffiliated merchants or 
                                service providers, or automated 
                                teller machines;
                                  (IV) used to transfer or 
                                debit funds, monetary value, or 
                                other assets; and
                                  (V) reloadable and not 
                                marketed or labeled as a gift 
                                card or gift certificate.
                  (B) Exception.--Notwithstanding subparagraph 
                (A), after the end of the 1-year period 
                beginning on the effective date provided in 
                paragraph (9), this subsection shall apply to 
                an interchange transaction fee charged or 
                received with respect to an electronic debit 
                transaction described in subparagraph (A)(i) in 
                which a person uses a general-use prepaid card, 
                or an electronic debit transaction described in 
                subparagraph (A)(ii), if any of the following 
                fees may be charged to a person with respect to 
                the card:
                          (i) A fee for an overdraft, including 
                        a shortage of funds or a transaction 
                        processed for an amount exceeding the 
                        account balance.
                          (ii) A fee imposed by the issuer for 
                        the first withdrawal per month from an 
                        automated teller machine that is part 
                        of the issuer's designated automated 
                        teller machine network.
                  (C) Definition.--For purposes of subparagraph 
                (B), the term ``designated automated teller 
                machine network'' means either--
                          (i) all automated teller machines 
                        identified in the name of the issuer; 
                        or
                          (ii) any network of automated teller 
                        machines identified by the issuer that 
                        provides reasonable and convenient 
                        access to the issuer's customers.
                  (D) Reporting.--Beginning 12 months after the 
                date of enactment of the Consumer Financial 
                Protection Act of 2010, the Board shall 
                annually provide a report to the Congress 
                regarding --
                          (i) the prevalence of the use of 
                        general-use prepaid cards in Federal, 
                        State or local government-administered 
                        payment programs; and
                          (ii) the interchange transaction fees 
                        and cardholder fees charged with 
                        respect to the use of such general-use 
                        prepaid cards.
          (8) Regulatory authority over network fees.--
                  (A) In general.--The Board may prescribe 
                regulations, pursuant to section 553 of title 
                5, United States Code, regarding any network 
                fee.
                  (B) Limitation.--The authority under 
                subparagraph (A) to prescribe regulations shall 
                be limited to regulations to ensure that--
                          (i) a network fee is not used to 
                        directly or indirectly compensate an 
                        issuer with respect to an electronic 
                        debit transaction; and
                          (ii) a network fee is not used to 
                        circumvent or evade the restrictions of 
                        this subsection and regulations 
                        prescribed under such subsection.
                  (C) Rulemaking required.--The Board shall 
                prescribe regulations in final form before the 
                end of the 9-month period beginning on the date 
                of the enactment of the Consumer Financial 
                Protection Act of 2010, to carry out the 
                authorities provided under subparagraph (A).
          (9) Effective date.--This subsection shall take 
        effect at the end of the 12-month period beginning on 
        the date of the enactment of the Consumer Financial 
        Protection Act of 2010.
  (b) Limitation on Payment Card Network Restrictions.--
          (1) Prohibitions against exclusivity arrangements.--
                  (A) No exclusive network.--The Board shall, 
                before the end of the 1-year period beginning 
                on the date of the enactment of the Consumer 
                Financial Protection Act of 2010, prescribe 
                regulations providing that an issuer or payment 
                card network shall not directly or through any 
                agent, processor, or licensed member of a 
                payment card network, by contract, requirement, 
                condition, penalty, or otherwise, restrict the 
                number of payment card networks on which an 
                electronic debit transaction may be processed 
                to--
                          (i) 1 such network; or
                          (ii) 2 or more such networks which 
                        are owned, controlled, or otherwise 
                        operated by --
                                  (I) affiliated persons; or
                                  (II) networks affiliated with 
                                such issuer.
                  (B) No routing restrictions.--The Board 
                shall, before the end of the 1-year period 
                beginning on the date of the enactment of the 
                Consumer Financial Protection Act of 2010, 
                prescribe regulations providing that an issuer 
                or payment card network shall not, directly or 
                through any agent, processor, or licensed 
                member of the network, by contract, 
                requirement, condition, penalty, or otherwise, 
                inhibit the ability of any person who accepts 
                debit cards for payments to direct the routing 
                of electronic debit transactions for processing 
                over any payment card network that may process 
                such transactions.
          (2) Limitation on restrictions on offering discounts 
        for use of a form of payment.--
                  (A) In general.--A payment card network shall 
                not, directly or through any agent, processor, 
                or licensed member of the network, by contract, 
                requirement, condition, penalty, or otherwise, 
                inhibit the ability of any person to provide a 
                discount or in-kind incentive for payment by 
                the use of cash, checks, debit cards, or credit 
                cards to the extent that--
                          (i) in the case of a discount or in-
                        kind incentive for payment by the use 
                        of debit cards, the discount or in-kind 
                        incentive does not differentiate on the 
                        basis of the issuer or the payment card 
                        network;
                          (ii) in the case of a discount or in-
                        kind incentive for payment by the use 
                        of credit cards, the discount or in-
                        kind incentive does not differentiate 
                        on the basis of the issuer or the 
                        payment card network; and
                          (iii) to the extent required by 
                        Federal law and applicable State law, 
                        such discount or in-kind incentive is 
                        offered to all prospective buyers and 
                        disclosed clearly and conspicuously.
                  (B) Lawful discounts.--For purposes of this 
                paragraph, the network may not penalize any 
                person for the providing of a discount that is 
                in compliance with Federal law and applicable 
                State law.
          (3) Limitation on restrictions on setting transaction 
        minimums or maximums.--
                  (A) In general.--A payment card network shall 
                not, directly or through any agent, processor, 
                or licensed member of the network, by contract, 
                requirement, condition, penalty, or otherwise, 
                inhibit the ability--
                          (i) of any person to set a minimum 
                        dollar value for the acceptance by that 
                        person of credit cards, to the extent 
                        that --
                                  (I) such minimum dollar value 
                                does not differentiate between 
                                issuers or between payment card 
                                networks; and
                                  (II) such minimum dollar 
                                value does not exceed $10.00; 
                                or
                          (ii) of any Federal agency or 
                        institution of higher education to set 
                        a maximum dollar value for the 
                        acceptance by that Federal agency or 
                        institution of higher education of 
                        credit cards, to the extent that such 
                        maximum dollar value does not 
                        differentiate between issuers or 
                        between payment card networks.
                  (B) Increase in minimum dollar amount.--The 
                Board may, by regulation prescribed pursuant to 
                section 553 of title 5, United States Code, 
                increase the amount of the dollar value listed 
                in subparagraph (A)(i)(II).
          (4) Rule of construction:.--No provision of this 
        subsection shall be construed to authorize any person--
                  (A) to discriminate between debit cards 
                within a payment card network on the basis of 
                the issuer that issued the debit card; or
                  (B) to discriminate between credit cards 
                within a payment card network on the basis of 
                the issuer that issued the credit card.
  (c) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Affiliate.--The term ``affiliate'' means any 
        company that controls, is controlled by, or is under 
        common control with another company.
          (2) Debit card.--The term ``debit card''--
                  (A) means any card, or other payment code or 
                device, issued or approved for use through a 
                payment card network to debit an asset account 
                (regardless of the purpose for which the 
                account is established), whether authorization 
                is based on signature, PIN, or other means;
                  (B) includes a general-use prepaid card, as 
                that term is defined in section 915(a)(2)(A); 
                and
                  (C) does not include paper checks.
          (3) Credit card.--The term ``credit card'' has the 
        same meaning as in section 103 of the Truth in Lending 
        Act.
          (4) Discount.--The term ``discount''--
                  (A) means a reduction made from the price 
                that customers are informed is the regular 
                price; and
                  (B) does not include any means of increasing 
                the price that customers are informed is the 
                regular price.
          (5) Electronic debit transaction.--The term 
        ``electronic debit transaction'' means a transaction in 
        which a person uses a debit card.
          (6) Federal agency.--The term ``Federal agency'' 
        means--
                  (A) an agency (as defined in section 101 of 
                title 31, United States Code); and
                  (B) a Government corporation (as defined in 
                section 103 of title 5, United States Code).
          (7) Institution of higher education.--The term 
        ``institution of higher education'' has the same 
        meaning as in 101 and 102 of the Higher Education Act 
        of 1965 (20 U.S.C. 1001, 1002).
          (8) Interchange transaction fee.--The term 
        ``interchange transaction fee'' means any fee 
        established, charged or received by a payment card 
        network for the purpose of compensating an issuer for 
        its involvement in an electronic debit transaction.
          (9) Issuer.--The term ``issuer'' means any person who 
        issues a debit card, or credit card, or the agent of 
        such person with respect to such card.
          (10) Network fee.--The term ``network fee'' means any 
        fee charged and received by a payment card network with 
        respect to an electronic debit transaction, other than 
        an interchange transaction fee.
          (11) Payment card network.--The term ``payment card 
        network'' means an entity that directly, or through 
        licensed members, processors, or agents, provides the 
        proprietary services, infrastructure, and software that 
        route information and data to conduct debit card or 
        credit card transaction authorization, clearance, and 
        settlement, and that a person uses in order to accept 
        as a form of payment a brand of debit card, credit card 
        or other device that may be used to carry out debit or 
        credit transactions.
  (d) Enforcement.--
          (1) In general.--Compliance with the requirements 
        imposed under this section shall be enforced under 
        section 918.
          (2) Exception.--Sections 916 and 917 shall not apply 
        with respect to this section or the requirements 
        imposed pursuant to this section.

           *       *       *       *       *       *       *

                              ----------                              


                    EXPEDITED FUNDS AVAILABILITY ACT



           *       *       *       *       *       *       *
TITLE VI--EXPEDITED FUNDS AVAILABILITY

           *       *       *       *       *       *       *


SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES.

  (a) Next Business Day Availability For Certain Deposits.--
          (1) Cash deposits; wire transfers.--Except as 
        provided in subsection (e) and in section 604, in any 
        case in which--
                  (A) any cash is deposited in an account at a 
                receiving depository institution staffed by 
                individuals employed by such institution, or
                  (B) funds are received by a depository 
                institution by wire transfer for deposit in an 
                account at such institution,
        such cash or funds shall be available for withdrawal 
        not later than the business day after the business day 
        on which such cash is deposited or such funds are 
        received for deposit.
          (2) Government checks; certain other checks.--Funds 
        deposited in an account at a depository institution by 
        check shall be available for withdrawal not later than 
        the business day after the business day on which such 
        funds are deposited in the case of--
                  (A) a check which--
                          (i) is drawn on the Treasury of the 
                        United States; and
                          (ii) is endorsed only by the person 
                        to whom it was issued.
                  (B) a check which--
                          (i) is drawn by a State;
                          (ii) is deposited in a receiving 
                        depository institution which is located 
                        in such State and is staffed by 
                        individuals employed by such 
                        institution;
                          (iii) is deposited with a special 
                        deposit slip which indicates it is a 
                        check drawn by a State; and
                          (iv) is endorsed only by the person 
                        to whom it was issued;
                  (C) a check which--
                          (i) is drawn by a unit of general 
                        local government;
                          (ii) is deposited in a receiving 
                        depository institution which is located 
                        in the same State as such unit of 
                        general local government and is staffed 
                        by individuals employed by such 
                        institution;
                          (iii) is deposited with a special 
                        deposit slip which indicates it is a 
                        check drawn by a unit of general local 
                        government; and
                          (iv) is endorsed only by the person 
                        to whom it was issued;
                  (D) the first $200 deposited by check or 
                checks on any one business day;
                  (E) a check deposited in a branch of a 
                depository institution and drawn on the same or 
                another branch of the same depository 
                institution if both such branches are located 
                in the same State or the same check processing 
                region;
                  (F) a cashier's check, certified check, 
                teller's check, or depository check which--
                          (i) is deposited in a receiving 
                        depository institution which is staffed 
                        by individuals employed by such 
                        institution;
                          (ii) is deposited with a special 
                        deposit slip which indicates it is a 
                        cashier's check, certified check, 
                        teller's check, or depository check, as 
                        the case may be; and
                          (iii) is endorsed only by the person 
                        to whom it was issued.
  (b) Permanent Schedule.--
          (1) Availability of funds deposited by local 
        checks.--Subject to paragraph (3) of this subsection, 
        subsections (a)(2), (d), and (e) of this section, and 
        section 604, not more than 1 business day shall 
        intervene between the business day on which funds are 
        deposited in an account at a depository institution by 
        a check drawn on a local originating depository 
        institution and the business day on which the funds 
        involved are available for withdrawal.
          (2) Availability of funds deposited by nonlocal 
        checks.--Subject to paragraph (3) of this subsection, 
        subsections (a)(2), (d), and (e) of this section, and 
        section 604, not more than 4 business days shall 
        intervene between the business day on which funds are 
        deposited in an account at a depository institution by 
        a check drawn on a nonlocal originating depository 
        institution and the business day on which such funds 
        are available for withdrawal.
          (3) Time period adjustments for cash withdrawal of 
        certain checks.--
                  (A) In general.--Except as provided in 
                subparagraph (B), funds deposited in an account 
                in a depository institution by check (other 
                than a check described in subsection (a)(2)) 
                shall be available for cash withdrawal not 
                later than the business day after the business 
                day on which such funds otherwise are available 
                under paragraph (1) or (2).
                  (B)  5 p.m. cash availability.--Not more than 
                $400 (or the maximum amount allowable in the 
                case of a withdrawal from an automated teller 
                machine but not more than $400) of funds 
                deposited by one or more checks to which this 
                paragraph applies shall be available for cash 
                withdrawal not later than 5 o'clock post 
                meridian of the business day on which such 
                funds are available under paragraph (1) or (2). 
                If funds deposited by checks described in both 
                paragraph (1) and paragraph (2) become 
                available for cash withdrawal under this 
                paragraph on the same business day, the 
                limitation contained in this subparagraph shall 
                apply to the aggregate amount of such funds.
                  (C)  $200 availability.--Any amount available 
                for withdrawal under this paragraph shall be in 
                addition to the amount available under 
                subsection (a)(2)(D).
          (4) Applicability.--This subsection shall apply with 
        respect to funds deposited by check in an account at a 
        depository institution on or after September 1, 1990, 
        except that the Board may, by regulation, make this 
        subsection or any part of this subsection applicable 
        earlier than September 1, 1990.
  (c) Temporary Schedule.--
          (1) Availability of local checks.--
                  (A) In general.--Subject to subparagraph (B) 
                of this paragraph, subsections (a)(2), (d), and 
                (e) of this section, and section 604, not more 
                than 2 business days shall intervene between 
                the business day on which funds are deposited 
                in an account at a depository institution by a 
                check drawn on a local originating depository 
                institution and the business day on which such 
                funds are available for withdrawal.
                  (B) Time period adjustment for cash 
                withdrawal of certain checks.--
                          (i) In general.--Except as provided 
                        in clause (ii), funds deposited in an 
                        account in a depository institution by 
                        check drawn on a local depository 
                        institution that is not a participant 
                        in the same check clearinghouse 
                        association as the receiving depository 
                        institution (other than a check 
                        described in subsection (a)(2)) shall 
                        be available for cash withdrawal not 
                        later than the business day after the 
                        business day on which such funds 
                        otherwise are available under 
                        subparagraph (A).
                          (ii)  5 p.m. cash availability.--Not 
                        more than $400 (or the maximum amount 
                        allowable in the case of a withdrawal 
                        from an automated teller machine but 
                        not more than $400) of funds deposited 
                        by one or more checks to which this 
                        subparagraph applies shall be available 
                        for cash withdrawal not later than 5 
                        o'clock post meridian of the business 
                        day on which such funds are available 
                        under subparagraph (A).
                  (iii)  $200 availability.--Any amount 
                available for withdrawal under this 
                subparagraph shall be in addition to the amount 
                available under subsection (a)(2)(D).
          (2) Availability of nonlocal checks.--Subject to 
        subsections (a)(2), (d), and (e) of this section and 
        section 604, not more than 6 business days shall 
        intervene between the business day on which funds are 
        deposited in an account at a depository institution by 
        a check drawn on a nonlocal originating depository 
        institution and the business day on which such funds 
        are available for withdrawal.
          (3) Applicability.--This subsection shall apply with 
        respect to funds deposited by check in an account at a 
        depository institution after August 31, 1988, and 
        before September 1, 1990, except as may be otherwise 
        provided under subsection (b)(4).
  (d) Time Period Adjustments.--
          (1) Reduction generally.--Notwithstanding any other 
        provision of law, the Board, jointly with the Director 
        of the [Bureau of Consumer Financial Protection] 
        Consumer Financial Protection Bureau, shall, by 
        regulation, reduce the time periods established under 
        subsections (b), (c), and (e) to as short a time as 
        possible and equal to the period of time achievable 
        under the improved check clearing system for a 
        receiving depository institution to reasonably expect 
        to learn of the nonpayment of most items for each 
        category of checks.
          (2) Extension for certain deposits in noncontiguous 
        states or territories.--Notwithstanding any other 
        provision of law, any time period established under 
        subsection (b), (c), or (e) shall be extended by 1 
        business day in the case of any deposit which is both--
                  (A) deposited in an account at a depository 
                institution which is located in Alaska, Hawaii, 
                Puerto Rico, American Samoa, the Commonwealth 
                of the Northern Mariana Islands, Guam, or the 
                Virgin Islands; and
                  (B) deposited by a check drawn on an 
                originating depository institution which is not 
                located in the same State, commonwealth, or 
                territory as the receiving depository 
                institution.
  (e) Deposits at an ATM.--
          (1) Nonproprietary atm.--
                  (A) In general.--Not more than 4 business 
                days shall intervene between the business day a 
                deposit described in subparagraph (B) is made 
                at a nonproprietary automated teller machine 
                (for deposit in an account at a depository 
                institution) and the business day on which 
                funds from such deposit are available for 
                withdrawal.
                  (B) Deposits described in this paragraph.--A 
                deposit is described in this subparagraph if it 
                is--
                          (i) a cash deposit;
                          (ii) a deposit made by a check 
                        described in subsection (a)(2);
                          (iii) a deposit made by a check drawn 
                        on a local originating depository 
                        institution (other than a check 
                        described in subsection (a)(2)); or
                          (iv) a deposit made by a check drawn 
                        on a nonlocal originating depository 
                        institution (other than a check 
                        described in subsection (a)(2)).
          (2) Proprietary atm--temporary and permanent 
        schedules.--The provisions of subsections (a), (b), and 
        (c) shall apply with respect to any funds deposited at 
        a proprietary auto- mated teller machine for deposit in 
        an account at a depository institution.
          (3) Study and report on atm's.--The Board shall, 
        either directly or through the Consumer Advisory 
        Council, establish and maintain a dialogue with 
        depository institutions and their suppliers on the 
        computer software and hardware available for use by 
        automated teller machines, and shall, not later than 
        September 1 of each of the first 3 calendar years 
        beginning after the date of the enactment of this 
        title, report to the Congress regarding such software 
        and hardware and regarding the potential for improving 
        the processing of automated teller machine deposits.
  (f) Check Return; Notice of Nonpayment.--No provision of this 
section shall be construed as requiring that, with respect to 
all checks deposited in a receiving depository institution--
          (1) such checks be physically returned to such 
        depository institution; or
          (2) any notice of nonpayment of any such check be 
        given to such depository institution within the times 
        set forth in subsection (a), (b), (c), or (e) or in the 
        regulations issued under any such subsection.

SEC. 604. SAFEGUARD EXCEPTIONS.

  (a) New Accounts.--Notwithstanding section 603, in the case 
of any account established at a depository institution by a new 
depositor, the following provisions shall apply with respect to 
any deposit in such account during the 30-day period (or such 
shorter period as the Board, jointly with the Director of the 
[Bureau of Consumer Financial Protection] Consumer Financial 
Protection Bureau, may establish) beginning on the date such 
account is established--
          (1) Next business day availability of cash and 
        certain items.--Except as provided in paragraph (3), in 
        the case of--
                  (A) any cash deposited in such account;
                  (B) any funds received by such depository 
                institution by wire transfer for deposit in 
                such account;
                  (C) any funds deposited in such account by 
                cashier's check, certified check, teller's 
                check, depository check, or traveler's check; 
                and
                  (D) any funds deposited by a government check 
                which is described in subparagraph (A), (B), or 
                (C) of section 603(a)(2),
        such cash or funds shall be available for withdrawal on 
        the business day after the business day on which such 
        cash or funds are deposited or, in the case of a wire 
        transfer, on the business day after the business day on 
        which such funds are received for deposit.
          (2) Availability of other items.--In the case of any 
        funds deposited in such account by a check (other than 
        a check described in subparagraph (C) or (D) of 
        paragraph (1)), the availability for withdrawal of such 
        funds shall not be subject to the provisions of section 
        603(b), 603(c), or paragraphs (1) of section 603(e).
          (3) Limitation relating to certain checks in excess 
        of $5,000.--In the case of funds deposited in such 
        account during such period by checks described in 
        subparagraph (C) or (D) of paragraph (1) the aggregate 
        amount of which exceeds $5,000--
                  (A) paragraph (1) shall apply only with 
                respect to the first $5,000 of such aggregate 
                amount; and
                  (B) not more than 8 business days shall 
                intervene between the business day on which any 
                such funds are deposited and the business day 
                on which such excess amount shall be available 
                for withdrawal.
  (b) Large or Redeposited Checks; Repeated Overdrafts.--The 
Board, jointly with the Director of the [Bureau of Consumer 
Financial Protection] Consumer Financial Protection Bureau, 
may, by regulation, establish reasonable exceptions to any time 
limitation established under subsection (a)(2), (b), (c), or 
(e) of section 603 for--
          (1) the amount of deposits by one or more checks that 
        exceeds the amount of $5,000 in any one day;
          (2) checks that have been returned unpaid and 
        redeposited; and
          (3) deposit accounts which have been overdrawn 
        repeatedly.
  (c) Reasonable Cause Exception.--
          (1) In general.--In accordance with regulations which 
        the Board, jointly with the Director of the [Bureau of 
        Consumer Financial Protection] Consumer Financial 
        Protection Bureau, shall prescribe, subsections (a)(2), 
        (b), (c), and (e) of section 603 shall not apply with 
        respect to any check deposited in an account at a 
        depository institution if the receiving depository 
        institution has reasonable cause to believe that the 
        check is uncollectible from the originating depository 
        institution. For purposes of the preceding sentence, 
        reasonable cause to believe requires the existence of 
        facts which would cause a well-grounded belief in the 
        mind of a reasonable person. Such reasons shall be 
        included in the notice required under sub- section (f).
          (2) Basis for determination.--No determination under 
        this subsection may be based on any class of checks or 
        persons.
          (3) Overdraft fees.--If the receiving depository 
        institution determines that a check deposited in an 
        account is a check described in paragraph (1), the 
        receiving depository institution shall not assess any 
        fee for any subsequent overdraft with respect to such 
        account, if--
                  (A) the depositor was not provided with the 
                written notice required under subsection (f) 
                (with respect to such determination) at the 
                time the deposit was made;
                  (B) the overdraft would not have occurred but 
                for the fact that the funds so deposited are 
                not available; and
                  (C) the amount of the check is collected from 
                the originating depository institution.
          (4) Compliance.--Each agency referred to in section 
        610(a) shall monitor compliance with the requirements 
        of this subsection in each regular examination of a 
        depository institution and shall describe in each 
        report to the Congress the extent to which this 
        subsection is being complied with. For the purpose of 
        this paragraph, each depository institution shall 
        retain a record of each notice provided under 
        subsection (f) as a result of the application of this 
        subsection.
  (d) Emergency Conditions.--Subject to such regulations as the 
Board, jointly with the Director of the [Bureau of Consumer 
Financial Protection] Consumer Financial Protection Bureau, may 
prescribe, subsections (a)(2), (b), (c), and (e) of section 603 
shall not apply to funds deposited by check in any receiving 
depository institution in the case of--
          (1) any interruption of communication facilities;
          (2) suspension of payments by another depository 
        institution;
          (3) any war; or
          (4) any emergency condition beyond the control of the 
        receiving depository institution,
if the receiving depository institution exercises such 
diligence as the circumstances require.
  (e) Prevention of Fraud Losses.--
          (1) In general.--The Board, jointly with the Director 
        of the [Bureau of Consumer Financial Protection] 
        Consumer Financial Protection Bureau, may, by 
        regulation or order, suspend the applicability of this 
        title, or any portion thereof, to any classification of 
        checks if the Board, jointly with the Director of the 
        [Bureau of Consumer Financial Protection] Consumer 
        Financial Protection Bureau, determines that--
                  (A) depository institutions are experiencing 
                an unacceptable level of losses due to check-
                related fraud, and
                  (B) suspension of this title, or such portion 
                of this title, with regard to the 
                classification of checks involved in such fraud 
                is necessary to diminish the volume of such 
                fraud.
          (2) Sunset provision.--No regulation prescribed or 
        order issued under paragraph (1) shall remain in effect 
        for more than 45 days (excluding Saturdays, Sundays, 
        legal holidays, or any day either House of Congress is 
        not in session).
          (3) Report to congress.--
                  (A) Notice of each suspension.--Within 10 
                days of prescribing any regulation or issuing 
                any order under paragraph (1), the Board, 
                jointly with the Director of the [Bureau of 
                Consumer Financial Protection] Consumer 
                Financial Protection Bureau, shall transmit a 
                report of such action to the Committee on 
                Banking, Finance and Urban Affairs of the House 
                of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the 
                Senate.
                  (B) Contents of report.--Each report under 
                subparagraph (A) shall contain--
                          (i) the specific reason for 
                        prescribing the regulation or issuing 
                        the order;
                          (ii) evidence considered by the 
                        Board, jointly with the Director of the 
                        [Bureau of Consumer Financial 
                        Protection] Consumer Financial 
                        Protection Bureau, in making the 
                        determination under paragraph (1) with 
                        respect to such regulation or order; 
                        and
                          (iii) specific examples of the check-
                        related fraud giving rise to such 
                        regulation or order.
  (f) Notice of Exception; Availability Within Reasonable 
Time.--
          (1) In general.--If any exception contained in this 
        section (other than subsection (a)) applies with 
        respect to funds deposited in an account at a 
        depository institution--
                  (A) the depository institution shall provide 
                notice in the manner provided in paragraph (2) 
                of--
                          (i) the time period within which the 
                        funds shall be made available for 
                        withdrawal; and
                          (ii) the reason the exception was 
                        invoked; and
                  (B) except where other time periods are 
                specifically provided in this title, the 
                availability of the funds deposited shall be 
                governed by the policy of the receiving 
                depository institution, but shall not exceed a 
                reasonable period of time as determined by the 
                Board, jointly with the Director of the [Bureau 
                of Consumer Financial Protection] Consumer 
                Financial Protection Bureau.
          (2) Time for notice.--The notice required under 
        paragraph (1)(A) with respect to a deposit to which an 
        exception contained in this section applies shall be 
        made by the time provided in the following 
        subparagraphs:
                  (A) In the case of a deposit made in person 
                by the depositor at the receiving depository 
                institution, the depository institution shall 
                immediately provide such notice in writing to 
                the depositor.
                  (B) In the case of any other deposit (other 
                than a deposit described in subparagraph (C)), 
                the receiving depository institution shall mail 
                the notice to the depositor not later than the 
                close of the next business day following the 
                business day on which the deposit is received.
                  (C) In the case of a deposit to which 
                subsection (d) or (e) applies, notice shall be 
                provided by the depository institution in 
                accordance with regulations of the Board, 
                jointly with the Director of the [Bureau of 
                Consumer Financial Protection] Consumer 
                Financial Protection Bureau.
                  (D) In the case of a deposit to which 
                subsection (b)(1) or (b)(2) applies, the 
                depository institution may, for nonconsumer 
                accounts and other classes of accounts, as 
                defined by the Board, that generally have a 
                large number of such deposits, provide notice 
                at or before the time it first determines that 
                the subsection applies.
                  (E) In the case of a deposit to which 
                subsection (b)(3) applies, the depository 
                institution may, subject to regulations of the 
                Board, provide notice at the beginning of each 
                time period it determines that the subsection 
                applies. In addition to the requirements 
                contained in paragraph (1)(A), the notice shall 
                specify the time period for which the exception 
                will apply.
          (3) Subsequent determinations.--If the facts upon 
        which the determination of the applicability of an 
        exception contained in subsection (b) or (c) to any 
        deposit only become known to the receiving depository 
        institution after the time notice is required under 
        paragraph (2) with respect to such deposit, the 
        depository institution shall mail such notice to the 
        depositor as soon as practicable, but not later than 
        the first business day following the day such facts 
        become known to the depository institution.

SEC. 605. DISCLOSURE OF FUNDS AVAILABILITY 
                    POLICIES.

  (a) Notice for New Accounts.--Before an account is opened at 
a depository institution, the depository institution shall 
provide written notice to the potential customer of the 
specific policy of such depository institution with respect to 
when a customer may withdraw funds deposited into the 
customer's account.
  (b) Preprinted Deposit Slips.--All preprinted deposit slips 
that a depository institution furnishes to its customers shall 
contain a summary notice, as prescribed by the Board, jointly 
with the Director of the [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau, in 
regulations, that deposited items may not be available for 
immediate withdrawal.
  (c) Mailing of Notice.--
          (1) First mailing after enactment.--In the first 
        regularly scheduled mailing to customers occurring 
        after the effective date of this section, but not more 
        than 60 days after such effective date, each depository 
        institution shall send a written notice containing the 
        specific policy of such depository institution with 
        respect to when a customer may withdraw funds deposited 
        into such customer's account, unless the depository 
        institution has provided a disclosure which meets the 
        requirements of this section before such effective 
        date.
          (2) Subsequent changes.--A depository institution 
        shall send a written notice to customers at least 30 
        days before implementing any change to the depository 
        institution's policy with respect to when customers may 
        withdraw funds deposited into consumer accounts, except 
        that any change which expedites the availability of 
        such funds shall be disclosed not later than 30 days 
        after implementation.
          (3) Upon request.--Upon the request of any person, a 
        depository institution shall provide or send such 
        person a written notice containing the specific policy 
        of such depository institution with respect to when a 
        customer may withdraw funds deposited into a customer's 
        account.
  (d) Posting of Notice.--
          (1) Specific notice at manned teller stations.--Each 
        depository institution shall post, in a conspicuous 
        place in each location where deposits are accepted by 
        individuals employed by such depository institution, a 
        specific notice which describes the time periods 
        applicable to the availability of funds deposited in a 
        consumer account.
          (2) General notice at automated teller machines.--In 
        the case of any automated teller machine at which any 
        funds are received for deposit in an account at any 
        depository institution, the Board, jointly with the 
        Director of the [Bureau of Consumer Financial 
        Protection] Consumer Financial Protection Bureau, shall 
        prescribe, by regulations, that the owner or operator 
        of such automated teller machine shall post or provide 
        a general notice that funds deposited in such machine 
        may not be immediately available for withdrawal.
  (e) Notice of Interest Payment Policy.--If a depository 
institution described in section 606(b) begins the accrual of 
interest or dividends at a later date than the date described 
in section 606(a) with respect to all funds, including cash, 
deposited in an interest-bearing account at such depository 
institution, any notice required to be provided under 
subsections (a) and (c) shall contain a written description of 
the time at which such depository institution begins to accrue 
interest or dividends on such funds.
  (f) Model Disclosure Forms.--
          (1) Prepared by board and bureau.--The Board, jointly 
        with the Director of the [Bureau of Consumer Financial 
        Protection] Consumer Financial Protection Bureau, shall 
        publish model disclosure forms and clauses for common 
        transactions to facilitate compliance with the 
        disclosure requirements of this section and to aid 
        customers by utilizing readily understandable language.
          (2) Use of forms to achieve compliance.--A depository 
        institution shall be deemed to be in compliance with 
        the requirements of this section if such institution--
                  (A) uses any appropriate model form or clause 
                as published by the Board, jointly with the 
                Director of the [Bureau of Consumer Financial 
                Protection] Consumer Financial Protection 
                Bureau,, or
                  (B) uses any such model form or clause and 
                changes such form or clause by--
                          (i) deleting any information which is 
                        not required by this title; or
                          (ii) rearranging the format.
          (3) Voluntary use.--Nothing in this title requires 
        the use of any such model form or clause prescribed by 
        the Board, jointly with the Director of the [Bureau of 
        Consumer Financial Protection] Consumer Financial 
        Protection Bureau, under this subsection.
          (4) Notice and comment.--Model disclosure forms and 
        clauses shall be adopted by the Board, jointly with the 
        Director of the [Bureau of Consumer Financial 
        Protection] Consumer Financial Protection Bureau, only 
        after notice duly given in the Federal Register and an 
        opportunity for public comment in accordance with 
        section 553 of title 5, United States Code.

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SEC. 609. REGULATIONS AND REPORTS BY BOARD.

  (a) In General.--After notice and opportunity to submit 
comment in accordance with section 553(c) of title 5, United 
States Code, the Board, jointly with the Director of the 
[Bureau of Consumer Financial Protection] Consumer Financial 
Protection Bureau, shall prescribe regulations--
          (1) to carry out the provisions of this title;
          (2) to prevent the circumvention or evasion of such 
        provisions; and
          (3) to facilitate compliance with such provisions.
  (b) Regulations Relating to Improvement of Check Processing 
System.--In order to improve the check processing system, the 
Board shall consider (among other proposals) requiring, by 
regulation, that--
          (1) depository institutions be charged based upon 
        notification that a check or similar instrument will be 
        presented for payment;
          (2) the Federal Reserve banks and depository 
        institutions provide for check truncation;
          (3) depository institutions be provided incentives to 
        return items promptly to the depository institution of 
        first deposit;
          (4) the Federal Reserve banks and depository 
        institutions take such actions as are necessary to 
        automate the process of returning unpaid checks,
          (5) each depository institution and Federal Reserve 
        bank--
                  (A) place its endorsement, and other 
                notations specified in regulations of the 
                Board, on checks in the positions specified in 
                such regulations; and
                  (B) take such actions as are necessary to--
                          (i) automate the process of reading 
                        endorsements; and
                          (ii) eliminate unnecessary 
                        endorsements;
          (6) within one business day after an originating 
        depository institution is presented a check (for more 
        than such minimum amount as the Board may prescribe)--
                  (A) such originating depository institution 
                determine whether it will pay such check; and
                  (B) if such originating depository 
                institution determines that it will not pay 
                such check, such originating depository 
                institution directly notify the receiving 
                depository institution of such determination;
          (7) regardless of where a check is cleared initially, 
        all returned checks be eligible to be returned through 
        the Federal Reserve System;
          (8) Federal Reserve banks and depository institutions 
        participate in the development and implementation of an 
        electronic clearinghouse process to the extent the 
        Board determines, pursuant to the study under 
        subsection (f), that such a process is feasible; and
          (9) originating depository institutions be permitted 
        to return unpaid checks directly to, and obtain 
        reimbursement for such checks directly from, the 
        receiving depository institution.
  (c) Regulatory Responsibility of Board for Payment System.--
          (1) Responsibility for payment system.--In order to 
        carry out the provisions of this title, the Board of 
        Governors of the Federal Reserve System shall have the 
        responsibility to regulate--
                  (A) any aspect of the payment system, 
                including the receipt, payment, collection, or 
                clearing of checks; and
                  (B) any related function of the payment 
                system with respect to checks.
          (2) Regulations.--The Board shall prescribe such 
        regulations as it may determine to be appropriate to 
        carry out its responsibility under paragraph (1).
  (d) Reports.--
          (1) Implementation progress reports.--
                  (A) Required reports.--The Board shall 
                transmit a report to both Houses of the 
                Congress not later than 18, 30, and 48 months 
                after the date of the enactment of this title.
                  (B) Contents of report.--Each such report 
                shall describe--
                          (i) the actions taken and progress 
                        made by the Board to implement the 
                        schedules established in section 603, 
                        and
                          (ii) the impact of this title on 
                        consumers and depository institutions.
          (2) Evaluation of temporary schedule report.--
                  (A) Report required.--The Board shall 
                transmit a report to both Houses of the 
                Congress not later than 2 years after the date 
                of the enactment of this title regarding the 
                effects the temporary schedule established 
                under section 603(c) have had on depository 
                institutions and the public.
                  (B) Contents of report.--Such report shall 
                also assess the potential impact the 
                implementation of the schedule established in 
                section 603(b) will have on depository 
                institutions and the public, including an 
                estimate of the risks to and losses of 
                depository institutions and the benefits to 
                consumers. Such report shall also contain such 
                recommendations for legislative or 
                administrative action as the Board may 
                determine to be necessary.
          (3) Comptroller general evaluation report.--Not later 
        than 6 months after section 603(b) takes effect, the 
        Comptroller General of the United States shall transmit 
        a report to the Congress evaluating the implementation 
        and administration of this title.
  (e) Consultations.--In prescribing regulations under 
subsections (a) and (b), the Board and the Director of the 
[Bureau of Consumer Financial Protection] Consumer Financial 
Protection Bureau, in the case of subsection (a), and the 
Board, in the case of subsection (b), shall consult with the 
Comptroller of the Currency, the Board of Directors of the 
Federal Deposit Insurance Corporation, and the National Credit 
Union Administration Board.
  (f) Electronic Clearinghouse Study.--
          (1) Study required.--The Board shall study the 
        feasibility of modernizing and accelerating the check 
        payment system through the development of an electronic 
        clearinghouse process utilizing existing 
        telecommunications technology to avoid the necessity of 
        actual presentment of the paper instrument to a payor 
        institution before such institution is charged for the 
        item.
          (2) Consultation; factors to be studied.--In 
        connection with the study required under paragraph (1), 
        the Board shall--
                  (A) consult with appropriate experts in 
                telecommunications technology; and
                  (B) consider all practical and legal 
                impediments to the development of an electronic 
                clearinghouse process.
          (3) Report required.--The Board shall report its 
        conclusions to the Congress within 9 months of the date 
        of the enactment of this title.

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                              ----------                              


                     FEDERAL DEPOSIT INSURANCE ACT



           *       *       *       *       *       *       *
  Sec. 8. (a) Termination of Insurance.--
          (1) Voluntary termination.--Any insured depository 
        institution which is not--
                  (A) a national member bank;
                  (B) a State member bank;
                  (C) a Federal branch;
                  (D) a Federal savings association; or
                  (E) an insured branch which is required to be 
                insured under subsection (a) or (b) of section 
                6 of the International Banking Act of 1978,
        may terminate such depository institution's status as 
        an insured depository institution if such insured 
        institution provides written notice to the Corporation 
        of the institution's intent to terminate such status 
        not less than 90 days before the effective date of such 
        termination.
          (2) Involuntary termination.--
                  (A) Notice to primary regulator.--If the 
                Board of Directors determines that--
                          (i) an insured depository institution 
                        or the directors or trustees of an 
                        insured depository institution have 
                        engaged or are engaging in unsafe or 
                        unsound practices in conducting the 
                        business of the depository institution;
                          (ii) an insured depository 
                        institution is in an unsafe or unsound 
                        condition to continue operations as an 
                        insured institution; or
                          (iii) an insured depository 
                        institution or the directors or 
                        trustees of the insured institution 
                        have violated any applicable law, 
                        regulation, order, condition imposed in 
                        writing by the Corporation in 
                        connection with the approval of any 
                        application or other request by the 
                        insured depository institution, or 
                        written agreement entered into between 
                        the insured depository institution and 
                        the Corporation,
                the Board of Directors shall notify the 
                appropriate Federal banking agency with respect 
                to such institution (if other than the 
                Corporation) or the State banking supervisor of 
                such institution (if the Corporation is the 
                appropriate Federal banking agency) of the 
                Board's determination and the facts and 
                circumstances on which such determination is 
                based for the purpose of securing the 
                correction of such practice, condition, or 
                violation. Such notice shall be given to the 
                appropriate Federal banking agency not less 
                than 30 days before the notice required by 
                subparagraph (B), except that this period for 
                notice to the appropriate Federal banking 
                agency may be reduced or eliminated with the 
                agreement of such agency.
                  (B) Notice of intention to terminate 
                insurance.--If, after giving the notice 
                required under subparagraph (A) with respect to 
                an insured depository institution, the Board of 
                Directors determines that any unsafe or unsound 
                practice or condition or any violation 
                specified in such notice requires the 
                termination of the insured status of the 
                insured depository institution, the Board 
                shall--
                          (i) serve written notice to the 
                        insured depository institution of the 
                        Board's intention to terminate the 
                        insured status of the institution;
                          (ii) provide the insured depository 
                        institution with a statement of the 
                        charges on the basis of which the 
                        determination to terminate such 
                        institution's insured status was made 
                        (or a copy of the notice under 
                        subparagraph (A)); and
                          (iii) notify the insured depository 
                        institution of the date (not less than 
                        30 days after notice under this 
                        subparagraph) and place for a hearing 
                        before the Board of Directors (or any 
                        person designated by the Board) with 
                        respect to the termination of the 
                        institution's insured status.
          (3) Hearing; termination.--If, on the basis of the 
        evidence presented at a hearing before the Board of 
        Directors (or any person designated by the Board for 
        such purpose), in which all issues shall be determined 
        on the record pursuant to section 554 of title 5, 
        United States Code, and the written findings of the 
        Board of Directors (or such person) with respect to 
        such evidence (which shall be conclusive), the Board of 
        Directors finds that any unsafe or unsound practice or 
        condition or any violation specified in the notice to 
        an insured depository institution under paragraph 
        (2)(B) or subsection (w) has been established, the 
        Board of Directors may issue an order terminating the 
        insured status of such depository institution effective 
        as of a date subsequent to such finding.
          (4) Appearance; consent to termination.--Unless the 
        depository institution shall appear at the hearing by a 
        duly authorized representative, it shall be deemed to 
        have consented to the termination of its status as an 
        insured depository institution and termination of such 
        status thereupon may be ordered.
          (5) Judicial review.--Any insured depository 
        institution whose insured status has been terminated by 
        order of the Board of Directors under this subsection 
        shall have the right of judicial review of such order 
        only to the same extent as provided for the review of 
        orders under subsection (h) of this section.
          (6) Publication of notice of termination.--The 
        Corporation may publish notice of such termination and 
        the depository institution shall give notice of such 
        termination to each of its depositors at his last 
        address of record on the books of the depository 
        institution, in such manner and at such time as the 
        Board of Directors may find to be necessary and may 
        order for the protection of depositors.
          (7) Temporary insurance of deposits insured as of 
        termination.--After the termination of the insured 
        status of any depository institution under the 
        provisions of this subsection, the insured deposits of 
        each depositor in the depository institution on the 
        date of such termination, less all subsequent 
        withdrawals from any deposits of such depositor, shall 
        continue for a period of at least 6 months or up to 2 
        years, within the discretion of the Board of Directors, 
        to be insured, and the depository institution shall 
        continue to pay to the Corporation assessments as in 
        the case of an insured depository institution during 
        such period. No additions to any such deposits and no 
        new deposits in such depository institution made after 
        the date of such termination shall be insured by the 
        Corporation, and the depository institution shall not 
        advertise or hold itself out as having insured deposits 
        unless in the same connection it shall also state with 
        equal prominence that such additions to deposits and 
        new deposits made after such date are not so insured. 
        Such depository institution shall, in all other 
        respects, be subject to the duties and obligations of 
        an insured depository institution for the period 
        referred to in the 1st sentence from the date of such 
        termination, and in the event that such depository 
        institution shall be closed on account of inability to 
        meet the demands of its depositors within such period, 
        the Corporation shall have the same powers and rights 
        with respect to such depository institution as in case 
        of an insured depository institution.
          (8) Temporary suspension of insurance.--
                  (A) In general.--If the Board of Directors 
                initiates a termination proceeding under 
                paragraph (2), and the Board of Directors, 
                after consultation with the appropriate Federal 
                banking agency, finds that an insured 
                depository institution (other than a savings 
                association to which subparagraph (B) applies) 
                has no tangible capital under the capital 
                guidelines or regulations of the appropriate 
                Federal banking agency, the Corporation may 
                issue a temporary order suspending deposit 
                insurance on all deposits received by the 
                institution.
                  (B) Special rule for certain savings 
                institutions.--
                          (i) Certain goodwill included in 
                        tangible capital.--In determining the 
                        tangible capital of a savings 
                        association for purposes of this 
                        paragraph, the Board of Directors shall 
                        include goodwill to the extent it is 
                        considered a component of capital under 
                        section 5(t) of the Home Owners' Loan 
                        Act. Any savings association which 
                        would be subject to a suspension order 
                        under subparagraph (A) but for the 
                        operation of this subparagraph, shall 
                        be considered by the Corporation to be 
                        a ``special supervisory association''.
                          (ii) Suspension order.--The 
                        Corporation may issue a temporary order 
                        suspending deposit insurance on all 
                        deposits received by a special 
                        supervisory association whenever the 
                        Board of Directors determines that--
                                  (I) the capital of such 
                                association, as computed 
                                utilizing applicable accounting 
                                standards, has suffered a 
                                material decline;
                                  (II) that such association 
                                (or its directors or officers) 
                                is engaging in an unsafe or 
                                unsound practice in conducting 
                                the business of the 
                                association;
                                  (III) that such association 
                                is in an unsafe or unsound 
                                condition to continue operating 
                                as an insured association; or
                                  (IV) that such association 
                                (or its directors or officers) 
                                has violated any applicable 
                                law, rule, regulation, or 
                                order, or any condition imposed 
                                in writing by a Federal banking 
                                agency, or any written 
                                agreement including a capital 
                                improvement plan entered into 
                                with any Federal banking 
                                agency, or that the association 
                                has failed to enter into a 
                                capital improvement plan which 
                                is acceptable to the 
                                Corporation within the time 
                                period set forth in section 
                                5(t) of the Home Owners' Loan 
                                Act.
                        Nothing in this paragraph limits the 
                        right of the Corporation or the 
                        Comptroller of the Currency to enforce 
                        a contractual provision which 
                        authorizes the Corporation or the 
                        Comptroller of the Currency, as a 
                        successor to the Federal Savings and 
                        Loan Insurance Corporation or the 
                        Federal Home Loan Bank Board, to 
                        require a savings association to write 
                        down or amortize goodwill at a faster 
                        rate than otherwise required under this 
                        Act or under applicable accounting 
                        standards.
                  (C) Effective period of temporary order.--Any 
                order issued under subparagraph (A) shall 
                become effective not earlier than 10 days from 
                the date of service upon the institution and, 
                unless set aside, limited, or suspended by a 
                court in proceedings authorized hereunder, such 
                temporary order shall remain effective and 
                enforceable until an order of the Board under 
                paragraph (3) becomes final or until the 
                Corporation dismisses the proceedings under 
                paragraph (3).
                  (D) Judicial review.--Before the close of the 
                10-day period beginning on the date any 
                temporary order has been served upon an insured 
                depository institution under subparagraph (A), 
                such institution may apply to the United States 
                District Court for the District of Columbia, or 
                the United States district court for the 
                judicial district in which the home office of 
                the institution is located, for an injunction 
                setting aside, limiting, or suspending the 
                enforcement, operation, or effectiveness of 
                such order, and such court shall have 
                jurisdiction to issue such injunction.
                  (E) Continuation of insurance for prior 
                deposits.--The insured deposits of each 
                depositor in such depository institution on the 
                effective date of the order issued under this 
                paragraph, minus all subsequent withdrawals 
                from any deposits of such depositor, shall 
                continue to be insured, subject to the 
                administrative proceedings as provided in this 
                Act.
                  (F) Publication of order.--The depository 
                institution shall give notice of such order to 
                each of its depositors in such manner and at 
                such times as the Board of Directors may find 
                to be necessary and may order for the 
                protection of depositors.
                  (G) Notice by corporation.--If the 
                Corporation determines that the depository 
                institution has not substantially complied with 
                the notice to depositors required by the Board 
                of Directors, the Corporation may provide such 
                notice in such manner as the Board of Directors 
                may find to be necessary and appropriate.
                  (H) Lack of notice.--Notwithstanding 
                subparagraph (A), any deposit made after the 
                effective date of a suspension order issued 
                under this paragraph shall remain insured to 
                the extent that the depositor establishes 
                that--
                          (i) such deposit consists of 
                        additions made by automatic deposit the 
                        depositor was unable to prevent; or
                          (ii) such depositor did not have 
                        actual knowledge of the suspension of 
                        insurance.
          (9) Final decisions to terminate insurance.--Any 
        decision by the Board of Directors to--
                  (A) issue a temporary order terminating 
                deposit insurance; or
                  (B) issue a final order terminating deposit 
                insurance (other than under subsection (p) or 
                (q));
        shall be made by the Board of Directors and may not be 
        delegated.
          (10) Low- to moderate-income housing lender.--In 
        making any determination regarding the termination of 
        insurance of a solvent savings association, the 
        Corporation may consider the extent of the 
        association's low- to moderate-income housing loans.
  (b)(1) If, in the opinion of the appropriate Federal banking 
agency, any insured depository institution, depository 
institution which has insured deposits, or any institution-
affiliated party is engaging or has engaged, or the agency has 
reasonable cause to believe that the depository institution or 
any institution-affiliated party is about to engage, in an 
unsafe or unsound practice in conducting the business of such 
depository institution, or is violating or has violated, or the 
agency has reasonable cause to believe that the depository 
institution or any institution-affiliated party is about to 
violate, a law, rule, or regulation, or any condition imposed 
in writing by a Federal banking agency in connection with any 
action on any application, notice, or other request by the 
depository institution or institution-affiliated party, or any 
written agreement entered into with the agency, the appropriate 
Federal banking agency for the depository institution may issue 
and serve upon the depository institution or such party a 
notice of charges in respect thereof. The notice shall contain 
a statement of the facts constituting the alleged violation or 
violations or the unsafe or unsound practice or practices, and 
shall fix a time and place at which a hearing will be held to 
determine whether an order to cease and desist therefrom should 
issue against the depository institution or the institution-
affiliated party. Such hearing shall be fixed for a date not 
earlier than thirty days nor later than sixty days after 
service of such notice unless an earlier or a later date is set 
by the agency at the request of any party so served. Unless the 
party or parties so served shall appear at the hearing 
personally or by a duly authorized representative, they shall 
be deemed to have consented to the issuance of the cease-and-
desist order. In the event of such consent, or if upon the 
record made at any such hearing, the agency shall find that any 
violation or unsafe or unsound practice specified in the notice 
of charges has been established, the agency may issue and serve 
upon the depository institution or the institution-affiliated 
party an order to cease and desist from any such violation or 
practice. Such order may, by provisions which may be mandatory 
or otherwise, require the depository institution or its 
institution-affiliated parties to cease and desist from the 
same, and, further, to take affirmative action to correct the 
conditions resulting from any such violation or practice.
  (2) A cease-and-desist order shall become effective at the 
expiration of thirty days after the service of such order upon 
the depository institution or other person concerned (except in 
the case of a cease-and-desist order issued upon consent, which 
shall become effective at the time specified therein), and 
shall remain effective and enforceable as provided therein, 
except to such extent as it is stayed, modified, terminated, or 
set aside by action of the agency or a reviewing court.
  (3) This subsection, subsections (c) through (s) and 
subsection (u) of this section, and section 50 of this Act 
shall apply to any bank holding company, and to any 
``subsidiary'' (other than a bank) of a bank holding company, 
as those terms are defined in the Bank Holding Company Act of 
1956, any savings and loan holding company and any subsidiary 
(other than a depository institution) of a savings and loan 
holding company (as such terms are defined in section 10 of 
Home Owners' Loan Act)), any noninsured State member bank and 
to any organization organized and operated under section 25(a) 
of the Federal Reserve Act or operating under section 25 of the 
Federal Reserve Act, in the same manner as they apply to a 
State member insured bank. Nothing in this subsection or in 
subsection (c) of this section shall authorize any Federal 
banking agency, other than the Board of Governors of the 
Federal Reserve System, to issue a notice of charges or cease-
and-desist order against a bank holding company or any 
subsidiary thereof (other than a bank or subsidiary of that 
bank) or against a savings and loan holding company or any 
subsidiary thereof (other than a depository institution or a 
subsidiary of such depository institution).
  (4) This subsection, subsections (c) through (s) and 
subsection (u) of this section, and section 50 of this Act 
shall apply to any foreign bank or company to which subsection 
(a) of section 8 of the International Banking Act of 1978 
applies and to any subsidiary (other than a bank) of any such 
foreign bank or company in the same manner as they apply to a 
bank holding company and any subsidiary thereof (other than a 
bank) under paragraph (3) of this subsection. For the purposes 
of this paragraph, the term ``subsidiary'' shall have the 
meaning assigned to it in section 2 of the Bank Holding Company 
Act of 1956.
  (5) This section shall apply, in the same manner as it 
applies to any insured depository institution for which the 
appropriate Federal banking agency is the Comptroller of the 
Currency, to any national banking association chartered by the 
Comptroller of the Currency, including an uninsured 
association.
          (6) Affirmative action to correct conditions 
        resulting from violations or practices.--The authority 
        to issue an order under this subsection and subsection 
        (c) which requires an insured depository institution or 
        any institution-affiliated party to take affirmative 
        action to correct or remedy any conditions resulting 
        from any violation or practice with respect to which 
        such order is issued includes the authority to require 
        such depository institution or such party to--
                  (A) make restitution or provide 
                reimbursement, indemnification, or guarantee 
                against loss if--
                          (i) such depository institution or 
                        such party was unjustly enriched in 
                        connection with such violation or 
                        practice; or
                          (ii) the violation or practice 
                        involved a reckless disregard for the 
                        law or any applicable regulations or 
                        prior order of the appropriate Federal 
                        banking agency;
                  (B) restrict the growth of the institution;
                  (C) dispose of any loan or asset involved;
                  (D) rescind agreements or contracts; and
                  (E) employ qualified officers or employees 
                (who may be subject to approval by the 
                appropriate Federal banking agency at the 
                direction of such agency); and
                  (F) take such other action as the banking 
                agency determines to be appropriate.
          (7) Authority to limit activities.--The authority to 
        issue an order under this subsection or subsection (c) 
        includes the authority to place limitations on the 
        activities or functions of an insured depository 
        institution or any institution-affiliated party.
          (8) Unsatisfactory asset quality, management, 
        earnings, or liquidity as unsafe or unsound practice.--
        If an insured depository institution receives, in its 
        most recent report of examination, a less-than-
        satisfactory rating for asset quality, management, 
        earnings, or liquidity, the appropriate Federal banking 
        agency may (if the deficiency is not corrected) deem 
        the institution to be engaging in an unsafe or unsound 
        practice for purposes of this subsection.
          (9)
          (10) Standard for certain orders.--No authority under 
        this subsection or subsection (c) to prohibit any 
        institution-affiliated party from withdrawing, 
        transferring, removing, dissipating, or disposing of 
        any funds, assets, or other property may be exercised 
        unless the appropriate Federal banking agency meets the 
        standards of Rule 65 of the Federal Rules of Civil 
        Procedure, without regard to the requirement of such 
        rule that the applicant show that the injury, loss, or 
        damage is irreparable and immediate.
  (c)(1) Whenever the appropriate Federal banking agency shall 
determine that the violation or threatened violation or the 
unsafe or unsound practice or practices, specified in the 
notice of charges served upon the depository institution or any 
institution-affiliated party pursuant to paragraph (1) of 
subsection (b) of this section, or the continuation thereof, is 
likely to cause insolvency or significant dissipation of assets 
or earnings of the depository institution, or is likely to 
weaken the condition of the depository institution or otherwise 
prejudice the interests of its depositors prior to the 
completion of the proceedings conducted pursuant to paragraph 
(1) of subsection (b) of this section, the agency may issue a 
temporary order requiring the depository institution or such 
party to cease and desist from any such violation or practice 
and to take affirmative action to prevent or remedy such 
insolvency, dissipation, condition, or prejudice pending 
completion of such proceedings. Such order may include any 
requirement authorized under subsection (b)(6). Such order 
shall become effective upon service upon the depository 
institution or such party participating in the conduct of the 
affairs of such depository institution and, unless set aside, 
limited, or suspended by a court in proceedings authorized by 
paragraph (2) of this subsection, shall remain effective and 
enforceable pending the completion of the administrative 
proceedings pursuant to such notice and until such time as the 
agency shall dismiss the charges specified in such notice, or 
if a cease-and-desist order is issued against the depository 
institution or such party, until the effective date of such 
order.
  (2) Within ten days after the depository institution 
concerned or any institution-affiliated party has been served 
with a temporary cease-and-desist order, the depository 
institution or such party may apply to the United States 
district court for the judicial district in which the home 
office of the depository institution is located, or the United 
States District Court for the District of Columbia, for an 
injunction setting aside, limiting, or suspending the 
enforcement, operation, or effectiveness of such order pending 
the completion of the administrative proceedings pursuant to 
the notice of charges served upon the depository institution or 
such party under paragraph (1) of subsection (b) of this 
section, and such court shall have jurisdiction to issue such 
injunction.
          (3) Incomplete or inaccurate records.--
                  (A) Temporary order.--If a notice of charges 
                served under subsection (b)(1) specifies, on 
                the basis of particular facts and 
                circumstances, that an insured depository 
                institution's books and records are so 
                incomplete or inaccurate that the appropriate 
                Federal banking agency is unable, through the 
                normal supervisory process, to determine the 
                financial condition of that depository 
                institution or the details or purpose of any 
                transaction or transactions that may have a 
                material effect on the financial condition of 
                that depository institution, the agency may 
                issue a temporary order requiring--
                          (i) the cessation of any activity or 
                        practice which gave rise, whether in 
                        whole or in part, to the incomplete or 
                        inaccurate state of the books or 
                        records; or
                          (ii) affirmative action to restore 
                        such books or records to a complete and 
                        accurate state, until the completion of 
                        the proceedings under subsection 
                        (b)(1).
                  (B) Effective period.--Any temporary order 
                issued under subparagraph (A)--
                          (i) shall become effective upon 
                        service; and
                          (ii) unless set aside, limited, or 
                        suspended by a court in proceedings 
                        under paragraph (2), shall remain in 
                        effect and enforceable until the 
                        earlier of--
                                  (I) the completion of the 
                                proceeding initiated under 
                                subsection (b)(1) in connection 
                                with the notice of charges; or
                                  (II) the date the appropriate 
                                Federal banking agency 
                                determines, by examination or 
                                otherwise, that the insured 
                                depository institution's books 
                                and records are accurate and 
                                reflect the financial condition 
                                of the depository institution.
          (4) False advertising or misuse of names to indicate 
        insured status.--
                  (A) Temporary order.--
                          (i) In general.--If a notice of 
                        charges served under subsection (b)(1) 
                        specifies on the basis of particular 
                        facts that any person engaged or is 
                        engaging in conduct described in 
                        section 18(a)(4), the Corporation or 
                        other appropriate Federal banking 
                        agency may issue a temporary order 
                        requiring--
                                  (I) the immediate cessation 
                                of any activity or practice 
                                described, which gave rise to 
                                the notice of charges; and
                                  (II) affirmative action to 
                                prevent any further, or to 
                                remedy any existing, violation.
                          (ii) Effect of order.--Any temporary 
                        order issued under this subparagraph 
                        shall take effect upon service.
                  (B) Effective period of temporary order.--A 
                temporary order issued under subparagraph (A) 
                shall remain effective and enforceable, pending 
                the completion of an administrative proceeding 
                pursuant to subsection (b)(1) in connection 
                with the notice of charges--
                          (i) until such time as the 
                        Corporation or other appropriate 
                        Federal banking agency dismisses the 
                        charges specified in such notice; or
                          (ii) if a cease-and-desist order is 
                        issued against such person, until the 
                        effective date of such order.
                  (C) Civil money penalties.--Any violation of 
                section 18(a)(4) shall be subject to civil 
                money penalties, as set forth in subsection 
                (i), except that for any person other than an 
                insured depository institution or an 
                institution-affiliated party that is found to 
                have violated this paragraph, the Corporation 
                or other appropriate Federal banking agency 
                shall not be required to demonstrate any loss 
                to an insured depository institution.
  (d) In the case of violation or threatened violation of, or 
failure to obey, a temporary cease-and-desist order issued 
pursuant to paragraph (1) of subsection (c) of the section, the 
appropriate Federal banking agency may apply to the United 
States district court, or the United States court of any 
territory, within the jurisdiction of which the home office of 
the depository institution is located, for an injunction to 
enforce such order, and, if the court shall determine that 
there has been such violation or threatened violation or 
failure to obey, it shall be the duty of the court to issue 
such injunction.
  (e) Removal and Prohibition Authority.--
          (1) Authority to issue order.--Whenever the 
        appropriate Federal banking agency determines that--
                  (A) any institution-affiliated party has, 
                directly or indirectly--
                          (i) violated--
                                  (I) any law or regulation;
                                  (II) any cease-and-desist 
                                order which has become final;
                                  (III) any condition imposed 
                                in writing by a Federal banking 
                                agency in connection with any 
                                action on any application, 
                                notice, or request by such 
                                depository institution or 
                                institution-affiliated party; 
                                or
                                  (IV) any written agreement 
                                between such depository 
                                institution and such agency;
                          (ii) engaged or participated in any 
                        unsafe or unsound practice in 
                        connection with any insured depository 
                        institution or business institution; or
                          (iii) committed or engaged in any 
                        act, omission, or practice which 
                        constitutes a breach of such party's 
                        fiduciary duty;
                  (B) by reason of the violation, practice, or 
                breach described in any clause of subparagraph 
                (A)--
                          (i) such insured depository 
                        institution or business institution has 
                        suffered or will probably suffer 
                        financial loss or other damage;
                          (ii) the interests of the insured 
                        depository institution's depositors 
                        have been or could be prejudiced; or
                          (iii) such party has received 
                        financial gain or other benefit by 
                        reason of such violation, practice, or 
                        breach; and
                  (C) such violation, practice, or breach--
                          (i) involves personal dishonesty on 
                        the part of such party; or
                          (ii) demonstrates willful or 
                        continuing disregard by such party for 
                        the safety or soundness of such insured 
                        depository institution or business 
                        institution,
        the appropriate Federal banking agency for the 
        depository institution may serve upon such party a 
        written notice of the agency's intention to remove such 
        party from office or to prohibit any further 
        participation by such party, in any manner, in the 
        conduct of the affairs of any insured depository 
        institution.
          (2) Specific violations.--
                  (A) In general.--Whenever the appropriate 
                Federal banking agency determines that--
                          (i) an institution-affiliated party 
                        has committed a violation of any 
                        provision of subchapter II of chapter 
                        53 of title 31, United States Code, and 
                        such violation was not inadvertent or 
                        unintentional;
                          (ii) an officer or director of an 
                        insured depository institution has 
                        knowledge that an institution-
                        affiliated party of the insured 
                        depository institution has violated any 
                        such provision or any provision of law 
                        referred to in subsection 
                        (g)(1)(A)(ii);
                          (iii) an officer or director of an 
                        insured depository institution has 
                        committed any violation of the 
                        Depository Institution Management 
                        Interlocks Act; or
                          (iv) an institution-affiliated party 
                        of a subsidiary (other than a bank) of 
                        a bank holding company or of a 
                        subsidiary (other than a savings 
                        association) of a savings and loan 
                        holding company has been convicted of 
                        any criminal offense involving 
                        dishonesty or a breach of trust or a 
                        criminal offense under section 1956, 
                        1957, or 1960 of title 18, United 
                        States Code, or has agreed to enter 
                        into a pretrial diversion or similar 
                        program in connection with a 
                        prosecution for such an offense,
                the agency may serve upon such party, officer, 
                or director a written notice of the agency's 
                intention to remove such party from office.
                  (B) Factors to be considered.--In determining 
                whether an officer or director should be 
                removed as a result of the application of 
                subparagraph (A)(ii), the agency shall consider 
                whether the officer or director took 
                appropriate action to stop, or to prevent the 
                recurrence of, a violation described in such 
                subparagraph.
          (3) Suspension order.--
                  (A) Suspension or prohibition authorized.--If 
                the appropriate Federal banking agency serves 
                written notice under paragraph (1) or (2) to 
                any institution-affiliated party of such 
                agency's intention to issue an order under such 
                paragraph, the appropriate Federal banking 
                agency may suspend such party from office or 
                prohibit such party from further participation 
                in any manner in the conduct of the affairs of 
                the depository institution, if the agency--
                          (i) determines that such action is 
                        necessary for the protection of the 
                        depository institution or the interests 
                        of the depository institution's 
                        depositors; and
                          (ii) serves such party with written 
                        notice of the suspension order.
                  (B) Effective period.--Any suspension order 
                issued under subparagraph (A)--
                          (i) shall become effective upon 
                        service; and
                          (ii) unless a court issues a stay of 
                        such order under subsection (f), shall 
                        remain in effect and enforceable 
                        until--
                                  (I) the date the appropriate 
                                Federal banking agency 
                                dismisses the charges contained 
                                in the notice served under 
                                paragraph (1) or (2) with 
                                respect to such party; or
                                  (II) the effective date of an 
                                order issued by the agency to 
                                such party under paragraph (1) 
                                or (2).
                  (C) Copy of order.--If an appropriate Federal 
                banking agency issues a suspension order under 
                subparagraph (A) to any institution-affiliated 
                party, the agency shall serve a copy of such 
                order on any insured depository institution 
                with which such party is associated at the time 
                such order is issued.
  (4) A notice of intention to remove an institution-affiliated 
party from office or to prohibit such party from participating 
in the conduct of the affairs of an insured depository 
institution, shall contain a statement of the facts 
constituting grounds therefor, and shall fix a time and place 
at which a hearing will be held thereon. Such hearing shall be 
fixed for a date not earlier than thirty days nor later than 
sixty days after the date of service of such notice, unless an 
earlier or a later date is set by the agency at the request of 
(A) such party, and for good cause shown, or (B) the Attorney 
General of the United States. Unless such party shall appear at 
the hearing in person or by a duly authorized representative, 
such party shall be deemed to have consented to the issuance of 
an order of such removal or prohibition. In the event of such 
consent, or if upon the record made at any such hearing the 
agency shall find that any of the grounds specified in such 
notice have been established, the agency may issue such orders 
of suspension or removal from office, or prohibition from 
participation in the conduct of the affairs of the depository 
institution, as it may deem appropriate. Any such order shall 
become effective at the expiration of thirty days after service 
upon such depository institution and such party (except in the 
case of an order issued upon consent, which shall become 
effective at the time specified therein). Such order shall 
remain effective and enforceable except to such extent as it is 
stayed, modified, terminated, or set aside by action of the 
agency or a reviewing court.
  (5) For the purpose of enforcing any law, rule, regulation, 
or cease-and-desist order in connection with an interlocking 
relationship, the term ``officer'' within the term 
``institution-affiliated party'' as used in this subsection 
means an employee or officer with management functions, and the 
term ``director'' within the term ``institution-affiliated 
party'' as used in this subsection includes an advisory or 
honorary director, a trustee of a depository institution under 
the control of trustees, or any person who has a representative 
or nominee serving in any such capacity.
          (6) Prohibition of certain specific activities.--Any 
        person subject to an order issued under this subsection 
        shall not--
                  (A) participate in any manner in the conduct 
                of the affairs of any institution or agency 
                specified in paragraph (7)(A);
                  (B) solicit, procure, transfer, attempt to 
                transfer, vote, or attempt to vote any proxy, 
                consent, or authorization with respect to any 
                voting rights in any institution described in 
                subparagraph (A);
                  (C) violate any voting agreement previously 
                approved by the appropriate Federal banking 
                agency; or
                  (D) vote for a director, or serve or act as 
                an institution-affiliated party.
          (7) Industrywide Prohibition.--
                  (A) In general.--Except as provided in 
                subparagraph (B), any person who, pursuant to 
                an order issued under this subsection or 
                subsection (g), has been removed or suspended 
                from office in an insured depository 
                institution or prohibited from participating in 
                the conduct of the affairs of an insured 
                depository institution may not, while such 
                order is in effect, continue or commence to 
                hold any office in, or participate in any 
                manner in the conduct of the affairs of--
                          (i) any insured depository 
                        institution;
                          (ii) any institution treated as an 
                        insured bank under subsection (b)(3) or 
                        (b)(4), or as a savings association 
                        under subsection (b)(9);
                          (iii) any insured credit union under 
                        the Federal Credit Union Act;
                          (iv) any institution chartered under 
                        the Farm Credit Act of 1971;
                          (v) any appropriate Federal 
                        depository institution regulatory 
                        agency; and
                          (vi) the Federal Housing Finance 
                        Agency and any Federal home loan bank.
                  (B) Exception if agency provides written 
                consent.--If, on or after the date an order is 
                issued under this subsection which removes or 
                suspends from office any institution-affiliated 
                party or prohibits such party from 
                participating in the conduct of the affairs of 
                an insured depository institution, such party 
                receives the written consent of--
                          (i) the agency that issued such 
                        order; and
                          (ii) the appropriate Federal 
                        financial institutions regulatory 
                        agency of the institution described in 
                        any clause of subparagraph (A) with 
                        respect to which such party proposes to 
                        become an institution-affiliated party,
                subparagraph (A) shall, to the extent of such 
                consent, cease to apply to such party with 
                respect to the institution described in each 
                written consent. Any agency that grants such a 
                written consent shall report such action to the 
                Corporation and publicly disclose such consent.
                  (C) Violation of paragraph treated as 
                violation of order.--Any violation of 
                subparagraph (A) by any person who is subject 
                to an order described in such subparagraph 
                shall be treated as a violation of the order.
                  (D) Appropriate federal financial 
                institutions regulatory agency defined.--For 
                purposes of this paragraph and subsection (j), 
                the term ``appropriate Federal financial 
                institutions regulatory agency'' means--
                          (i) the appropriate Federal banking 
                        agency, in the case of an insured 
                        depository institution;
                          (ii) the Farm Credit Administration, 
                        in the case of an institution chartered 
                        under the Farm Credit Act of 1971;
                          (iii) the National Credit Union 
                        Administration Board, in the case of an 
                        insured credit union (as defined in 
                        section 101(7) of the Federal Credit 
                        Union Act); and
                          (iv) the Secretary of the Treasury, 
                        in the case of the Federal Housing 
                        Finance Agency and any Federal home 
                        loan bank.
                  (E) Consultation between agencies.--The 
                agencies referred to in clauses (i) and (ii) of 
                subparagraph (B) shall consult with each other 
                before providing any written consent described 
                in subparagraph (B).
                  (F) Applicability.--This paragraph shall only 
                apply to a person who is an individual, unless 
                the appropriate Federal banking agency 
                specifically finds that it should apply to a 
                corporation, firm, or other business 
                enterprise.
  (f) Within ten days after any institution-affiliated party 
has been suspended from office and/or prohibited from 
participation in the conduct of the affairs of an insured 
depository institution under subsection (e)(3) of this section, 
such party may apply to the United States district court for 
the judicial district in which the home office of the 
depository institution is located, or the United States 
District Court for the District of Columbia, for a stay of such 
suspension and/or prohibition pending the completion of the 
administrative proceedings pursuant to the notice served upon 
such party under subsection (e)(1) or (e)(2) of this section, 
and such court shall have jurisdiction to stay such suspension 
and/or prohibition.
  (g) Suspension, Removal, and Prohibition From Participation 
Orders in the Case of Certain Criminal Offenses.--
          (1) Suspension or prohibition.--
                  (A) In general.--Whenever any institution-
                affiliated party is the subject of any 
                information, indictment, or complaint, 
                involving the commission of or participation 
                in--
                          (i) a crime involving dishonesty or 
                        breach of trust which is punishable by 
                        imprisonment for a term exceeding one 
                        year under State or Federal law, or
                          (ii) a criminal violation of section 
                        1956, 1957, or 1960 of title 18, United 
                        States Code, or section 5322 or 5324 of 
                        title 31, United States Code,
                the appropriate Federal banking agency may, if 
                continued service or participation by such 
                party posed, poses, or may pose a threat to the 
                interests of the depositors of, or threatened, 
                threatens, or may threaten to impair public 
                confidence in, any relevant depository 
                institution (as defined in subparagraph (E)), 
                by written notice served upon such party, 
                suspend such party from office or prohibit such 
                party from further participation in any manner 
                in the conduct of the affairs of any depository 
                institution.
                  (B) Provisions applicable to notice.--
                          (i) Copy.--A copy of any notice under 
                        subparagraph (A) shall also be served 
                        upon any depository institution that 
                        the subject of the notice is affiliated 
                        with at the time the notice is issued.
                          (ii) Effective period.--A suspension 
                        or prohibition under subparagraph (A) 
                        shall remain in effect until the 
                        information, indictment, or complaint 
                        referred to in such subparagraph is 
                        finally disposed of or until terminated 
                        by the agency.
                  (C) Removal or prohibition.--
                          (i) In general.--If a judgment of 
                        conviction or an agreement to enter a 
                        pretrial diversion or other similar 
                        program is entered against an 
                        institution-affiliated party in 
                        connection with a crime described in 
                        subparagraph (A)(i), at such time as 
                        such judgment is not subject to further 
                        appellate review, the appropriate 
                        Federal banking agency may, if 
                        continued service or participation by 
                        such party posed, poses, or may pose a 
                        threat to the interests of the 
                        depositors of, or threatened, 
                        threatens, or may threaten to impair 
                        public confidence in, any relevant 
                        depository institution (as defined in 
                        subparagraph (E)), issue and serve upon 
                        such party an order removing such party 
                        from office or prohibiting such party 
                        from further participation in any 
                        manner in the conduct of the affairs of 
                        any depository institution without the 
                        prior written consent of the 
                        appropriate agency.
                          (ii) Required for certain offenses.--
                        In the case of a judgment of conviction 
                        or agreement against an institution-
                        affiliated party in connection with a 
                        violation described in subparagraph 
                        (A)(ii), the appropriate Federal 
                        banking agency shall issue and serve 
                        upon such party an order removing such 
                        party from office or prohibiting such 
                        party from further participation in any 
                        manner in the conduct of the affairs of 
                        any depository institution without the 
                        prior written consent of the 
                        appropriate agency.
                  (D) Provisions applicable to order.--
                          (i) Copy.--A copy of any order under 
                        subparagraph (C) shall also be served 
                        upon any depository institution that 
                        the subject of the order is affiliated 
                        with at the time the order is issued, 
                        whereupon the institution-affiliated 
                        party who is subject to the order (if a 
                        director or an officer) shall cease to 
                        be a director or officer of such 
                        depository institution.
                          (ii) Effect of acquittal.--A finding 
                        of not guilty or other disposition of 
                        the charge shall not preclude the 
                        agency from instituting proceedings 
                        after such finding or disposition to 
                        remove such party from office or to 
                        prohibit further participation in 
                        depository institution affairs, 
                        pursuant to paragraph (1), (2), or (3) 
                        of subsection (e) of this section.
                          (iii) Effective period.--Any notice 
                        of suspension or order of removal 
                        issued under this paragraph shall 
                        remain effective and outstanding until 
                        the completion of any hearing or appeal 
                        authorized under paragraph (3) unless 
                        terminated by the agency.
                  (E) Relevant depository institution.--For 
                purposes of this subsection, the term 
                ``relevant depository institution'' means any 
                depository institution of which the party is or 
                was an institution-affiliated party at the time 
                at which--
                          (i) the information, indictment, or 
                        complaint described in subparagraph (A) 
                        was issued; or
                          (ii) the notice is issued under 
                        subparagraph (A) or the order is issued 
                        under subparagraph (C)(i).
  (2) If at any time, because of the suspension of one or more 
directors pursuant to this section, there shall be on the board 
of directors of a national bank less than a quorum of directors 
not so suspended, all powers and functions vested in or 
exercisable by such board shall vest in and be exercisable by 
the director or directors on the board not so suspended, until 
such time as there shall be a quorum of the board of directors. 
In the event all of the directors of a national bank are 
suspended pursuant to this section, the Comptroller of the 
Currency shall appoint persons to serve temporarily as 
directors in their place and stead pending the termination of 
such suspensions, or until such time as those who have been 
suspended, cease to be directors of the bank and their 
respective successors take office.
  (3) Within thirty days from service of any notice of 
suspension or order of removal issued pursuant to paragraph (1) 
of this subsection, the institution-affiliated party concerned 
may request in writing an opportunity to appear before the 
agency to show that the continued service to or participation 
in the conduct of the affairs of the depository institution by 
such party does not, or is not likely to, pose a threat to the 
interests of the bank's depositors or threaten to impair public 
confidence in the depository institution. Upon receipt of any 
such request, the appropriate Federal banking agency shall fix 
a time (not more than thirty days after receipt of such 
request, unless extended at the request of such party) and 
place at which such party may appear, personally or through 
counsel, before one or more members of the agency or designated 
employees of the agency to submit written materials (or, at the 
discretion of the agency, oral testimony) and oral argument. 
Within sixty days of such hearing, the agency shall notify such 
party whether the suspension or prohibition from participation 
in any manner in the conduct of the affairs of the depository 
institution will be continued, terminated, or otherwise 
modified, or whether the order removing such party from office 
or prohibiting such party from further participation in any 
manner in the conduct of the affairs of the depository 
institution will be rescinded or otherwise modified. Such 
notification shall contain a statement of the basis for the 
agency's decision, if adverse to such party. The Federal 
banking agencies are authorized to prescribe such rules as may 
be necessary to effectuate the purposes of this subsection.
  (h)(1) Any hearing provided for in this section (other than 
the hearing provided for in subsection (g)(3) of this section) 
shall be held in the Federal judicial district or in the 
territory in which the home office of the depository 
institution is located unless the party afforded the hearing 
consents to another place, and shall be conducted in accordance 
with the provisions of chapter 5 of title 5 of the United 
States Code. After such hearing, and within ninety days after 
the appropriate Federal banking agency or Board of Governors of 
the Federal Reserve System has notified the parties that the 
case has been submitted to it for final decision, it shall 
render its decision (which shall include findings of fact upon 
which its decision is predicated) and shall issue and serve 
upon each party to the proceeding an order or orders consistent 
with the provisions of this section. Judicial review of any 
such order shall be exclusively as provided in this subsection 
(h). Unless a petition for review is timely filed in a court of 
appeals of the United States, as hereinafter provided in 
paragraph (2) of this subsection, and thereafter until the 
record in the proceeding has been filed as so provided, the 
issuing agency may at any time, upon such notice and in such 
manner as it shall deem proper, modify, terminate, or set aside 
any such order. Upon such filing of the record, the agency may 
modify, terminate, or set aside any such order with permission 
of the court.
  (2) Any party to any proceeding under paragraph (1) may 
obtain a review of any order served pursuant to paragraph (1) 
of this subsection (other than an order issued with the consent 
of the depository institution or the institution-affiliated 
party concerned, or an order issued under paragraph (1) of 
subsection (g) of this section) by the filing in the court of 
appeals of the United States for the circuit in which the home 
office of the depository institution is located, or in the 
United States Court of Appeals for the District of Columbia 
Circuit, within thirty days after the date of service of such 
order, a written petition praying that the order of the agency 
be modified, terminated, or set aside. A copy of such petition 
shall be forthwith transmitted by the clerk of the court to the 
agency, and thereupon the agency shall file in the court the 
record in the proceeding, as provided in section 2112 of title 
28 of the United States Code. Upon the filing of such petition, 
such court shall have jurisdiction, which upon the filing of 
the record shall except as provided in the last sentence of 
said paragraph (1) be exclusive, to affirm, modify, terminate, 
or set aside, in whole or in part, the order of the agency. 
Review of such proceedings shall be had as provided in chapter 
7 of title 5 of the United States Code. The judgment and decree 
of the court shall be final, except that the same shall be 
subject to review by the Supreme Court upon certiorari, as 
provided in section 1254 of title 28 of the United States Code.
  (3) The commencement of proceedings for judicial review under 
paragraph (2) of this subsection shall not, unless specifically 
ordered by the court, operate as a stay of any order issued by 
the agency.
  (i)(1) The appropriate Federal banking agency may in its 
discretion apply to the United States district court, or the 
United States court of any territory, within the jurisdiction 
of which the home office of the depository institution is 
located, for the enforcement of any effective and outstanding 
notice or order issued under this section or under section 38 
or 39, and such courts shall have jurisdiction and power to 
order and require compliance herewith; but except as otherwise 
provided in this section or under section 38 or 39 no court 
shall have jurisdiction to affect by injunction or otherwise 
the issuance or enforcement of any notice or order under any 
such section, or to review, modify, suspend, terminate, or set 
aside any such notice or order.
          (2) Civil money penalty.--
                  (A) First tier.--Any insured depository 
                institution which, and any institution-
                affiliated party who--
                          (i) violates any law or regulation;
                          (ii) violates any final order or 
                        temporary order issued pursuant to 
                        subsection (b), (c), (e), (g), or (s) 
                        or any final order under section 38 or 
                        39;
                          (iii) violates any condition imposed 
                        in writing by a Federal banking agency 
                        in connection with any action on any 
                        application, notice, or other request 
                        by the depository institution or 
                        institution-affiliated party; or
                          (iv) violates any written agreement 
                        between such depository institution and 
                        such agency,
                shall forfeit and pay a civil penalty of not 
                more than $5,000 for each day during which such 
                violation continues.
                  (B) Second tier.--Notwithstanding 
                subparagraph (A), any insured depository 
                institution which, and any institution-
                affiliated party who--
                          (i)(I) commits any violation 
                        described in any clause of subparagraph 
                        (A);
                          (II) recklessly engages in an unsafe 
                        or unsound practice in conducting the 
                        affairs of such insured depository 
                        institution; or
                          (III) breaches any fiduciary duty;
                          (ii) which violation, practice, or 
                        breach--
                                  (I) is part of a pattern of 
                                misconduct;
                                  (II) causes or is likely to 
                                cause more than a minimal loss 
                                to such depository institution; 
                                or
                                  (III) results in pecuniary 
                                gain or other benefit to such 
                                party,
                shall forfeit and pay a civil penalty of not 
                more than $25,000 for each day during which 
                such violation, practice, or breach continues.
                  (C) Third tier.--Notwithstanding 
                subparagraphs (A) and (B), any insured 
                depository institution which, and any 
                institution-affiliated party who--
                          (i) knowingly--
                                  (I) commits any violation 
                                described in any clause of 
                                subparagraph (A);
                                  (II) engages in any unsafe or 
                                unsound practice in conducting 
                                the affairs of such depository 
                                institution; or
                                  (III) breaches any fiduciary 
                                duty; and
                          (ii) knowingly or recklessly causes a 
                        substantial loss to such depository 
                        institution or a substantial pecuniary 
                        gain or other benefit to such party by 
                        reason of such violation, practice, or 
                        breach,
                shall forfeit and pay a civil penalty in an 
                amount not to exceed the applicable maximum 
                amount determined under subparagraph (D) for 
                each day during which such violation, practice, 
                or breach continues.
                  (D) Maximum amounts of penalties for any 
                violation described in subparagraph (c).--The 
                maximum daily amount of any civil penalty which 
                may be assessed pursuant to subparagraph (C) 
                for any violation, practice, or breach 
                described in such subparagraph is--
                          (i) in the case of any person other 
                        than an insured depository institution, 
                        an amount to not exceed $1,000,000; and
                          (ii) in the case of any insured 
                        depository institution, an amount not 
                        to exceed the lesser of--
                                  (I) $1,000,000; or
                                  (II) 1 percent of the total 
                                assets of such institution.
                  (E) Assessment.--
                          (i) Written notice.--Any penalty 
                        imposed under subparagraph (A), (B), or 
                        (C) may be assessed and collected by 
                        the appropriate Federal banking agency 
                        by written notice.
                          (ii) Finality of assessment.--If, 
                        with respect to any assessment under 
                        clause (i), a hearing is not requested 
                        pursuant to subparagraph (H) within the 
                        period of time allowed under such 
                        subparagraph, the assessment shall 
                        constitute a final and unappealable 
                        order.
                  (F) Authority to modify or remit penalty.--
                Any appropriate Federal banking agency may 
                compromise, modify, or remit any penalty which 
                such agency may assess or had already assessed 
                under subparagraph (A), (B), or (C).
                  (G) Mitigating factors.--In determining the 
                amount of any penalty imposed under 
                subparagraph (A), (B), or (C), the appropriate 
                agency shall take into account the 
                appropriateness of the penalty with respect 
                to--
                          (i) the size of financial resources 
                        and good faith of the insured 
                        depository institution or other person 
                        charged;
                          (ii) the gravity of the violation;
                          (iii) the history of previous 
                        violations; and
                          (iv) such other matters as justice 
                        may require.
                  (H) Hearing.--The insured depository 
                institution or other person against whom any 
                penalty is assessed under this paragraph shall 
                be afforded an agency hearing if such 
                institution or person submits a request for 
                such hearing within 20 days after the issuance 
                of the notice of assessment.
                  (I) Collection.--
                          (i) Referral.--If any insured 
                        depository institution or other person 
                        fails to pay an assessment after any 
                        penalty assessed under this paragraph 
                        has become final, the agency that 
                        imposed the penalty shall recover the 
                        amount assessed by action in the 
                        appropriate United States district 
                        court.
                          (ii) Appropriateness of penalty not 
                        reviewable.--In any civil action under 
                        clause (i), the validity and 
                        appropriateness of the penalty shall 
                        not be subject to review.
                  (J) Disbursement.--All penalties collected 
                under authority of this paragraph shall be 
                deposited into the Treasury.
                  (K) Regulations.--Each appropriate Federal 
                banking agency shall prescribe regulations 
                establishing such procedures as may be 
                necessary to carry out this paragraph.
          (3) Notice under this section after separation from 
        service.--The resignation, termination of employment or 
        participation, or separation of an institution-
        affiliated party (including a separation caused by the 
        closing of an insured depository institution) shall not 
        affect the jurisdiction and authority of the 
        appropriate Federal banking agency to issue any notice 
        or order and proceed under this section against any 
        such party, if such notice or order is served before 
        the end of the 6-year period beginning on the date such 
        party ceased to be such a party with respect to such 
        depository institution (whether such date occurs 
        before, on, or after the date of the enactment of this 
        paragraph).
          (4) Prejudgment attachment.--
                  (A) In general.--In any action brought by an 
                appropriate Federal banking agency (excluding 
                the Corporation when acting in a manner 
                described in section 11(d)(18)) pursuant to 
                this section, or in actions brought in aid of, 
                or to enforce an order in, any administrative 
                or other civil action for money damages, 
                restitution, or civil money penalties brought 
                by such agency, the court may, upon application 
                of the agency, issue a restraining order that--
                          (i) prohibits any person subject to 
                        the proceeding from withdrawing, 
                        transferring, removing, dissipating, or 
                        disposing of any funds, assets or other 
                        property; and
                          (ii) appoints a temporary receiver to 
                        administer the restraining order.
                  (B) Standard.--
                          (i) Showing.--Rule 65 of the Federal 
                        Rules of Civil Procedure shall apply 
                        with respect to any proceeding under 
                        subparagraph (A) without regard to the 
                        requirement of such rule that the 
                        applicant show that the injury, loss, 
                        or damage is irreparable and immediate.
                          (ii) State proceeding.--If, in the 
                        case of any proceeding in a State 
                        court, the court determines that rules 
                        of civil procedure available under the 
                        laws of such State provide 
                        substantially similar protections to a 
                        party's right to due process as Rule 65 
                        (as modified with respect to such 
                        proceeding by clause (i)), the relief 
                        sought under subparagraph (A) may be 
                        requested under the laws of such State.
  (j) Criminal Penalty.--Whoever, being subject to an order in 
effect under subsection (e) or (g), without the prior written 
approval of the appropriate Federal financial institutions 
regulatory agency, knowingly participates, directly or 
indirectly, in any manner (including by engaging in an activity 
specifically prohibited in such an order or in subsection 
(e)(6)) in the conduct of the affairs of--
          (1) any insured depository institution;
          (2) any institution treated as an insured bank under 
        subsection (b)(3) or (b)(4);
          (3) any insured credit union (as defined in section 
        101(7) of the Federal Credit Union Act); or
          (4) any institution chartered under the Farm Credit 
        Act of 1971,
shall be fined not more than $1,000,000, imprisoned for not 
more than 5 years, or both.
  (l) Any service required or authorized to be made by the 
appropriate Federal banking agency under this section may be 
made by registered mail, or in such other manner reasonably 
calculated to give actual notice as the agency may by 
regulation or otherwise provide. Copies of any notice or order 
served by the agency upon any State depository institution or 
any institution-affiliated party, pursuant to the provisions of 
this section, shall also be sent to the appropriate State 
supervisory authority.
  (m) In connection with any proceeding under subsection (b), 
(c)(1), or (e) of this section involving an insured State bank 
or any institution-affiliated party, the appropriate Federal 
banking agency shall provide the appropriate State supervisory 
authority with notice of the agency's intent to institute such 
a proceeding and the grounds therefor. Unless within such time 
as the Federal banking agency deems appropriate in the light of 
the circumstances of the case (which time must be specified in 
the notice prescribed in the preceding sentence) satisfactory 
corrective action is effectuated by action of the State 
supervisory authority, the agency may proceed as provided in 
this section. No bank or other party who is the subject of any 
notice or order issued by the agency under this section shall 
have standing to raise the requirements of this subsection as 
ground for attacking the validity of any such notice or order.
  (n) In the course of or in connection with any proceeding 
under this section, or in connection with any claim for insured 
deposits or any examination or investigation under section 
10(c), the agency conducting the proceeding, examination, or 
investigation or considering the claim for insured deposits, or 
any member or designated representative thereof, including any 
person designated to conduct any hearing under this section, 
shall have the power to administer oaths and affirmations, to 
take or cause to be taken depositions, and to issue, revoke, 
quash, or modify subpenas and subpenas duces tecum; and such 
agency is empowered to make rules and regulations with respect 
to any such proceedings, claims, examinations, or 
investigations. The attendance of witnesses and the production 
of documents provided for in this subsection may be required 
from any place in any State or in any territory or other place 
subject to the jurisdiction of the United States at any 
designated place where such proceeding is being conducted. Any 
such agency or any party to proceedings under this section may 
apply to the United States District Court for the District of 
Columbia, or the United States district court for the judicial 
district or the United States court in any territory in which 
such proceeding is being conducted, or where the witness 
resides or carries on business, for enforcement of any subpena 
or subpena duces tecum issued pursuant to this subsection, and 
such courts shall have jurisdiction and power to order and 
require compliance therewith. Witnesses subpenaed under this 
subsection shall be paid the same fees and mileage that are 
paid witnesses in the district courts of the United States. Any 
court having jurisdiction of any proceeding instituted under 
this section by an insured depository institution or a director 
or officer thereof, may allow to any such party such reasonable 
expenses and attorneys' fees as it deems just and proper; and 
such expenses and fees shall be paid by the depository 
institution or from its assets. Any person who willfully shall 
fail or refuse to attend and testify or to answer any lawful 
inquiry or to produce books, papers, correspondence, memoranda, 
contracts, agreements, or other records, if in such person's 
power so to do, in obedience to the subpoena of the appropriate 
Federal banking agency, shall be guilty of a misdemeanor and, 
upon conviction, shall be subject to a fine of not more than 
$1,000 or to imprisonment for a term of not more than one year 
or both.
  (o) Whenever the insured status of a State member bank shall 
be terminated by action of the Board of Directors, the Board of 
Governors of the Federal Reserve System shall terminate its 
membership in the Federal Reserve System in accordance with the 
provisions of section 9 of the Federal Reserve Act, and 
whenever the insured status of a national member bank shall be 
so terminated the Comptroller of the Currency shall appoint a 
receiver for the bank, which shall be the Corporation. Except 
as provided in subsection (c) or (d) of section 4, whenever a 
member bank shall cease to be a member of the Federal Reserve 
System, its status as an insured depository institution shall, 
without notice or other action by the Board of Directors, 
terminate on the date the bank shall cease to be a member of 
the Federal Reserve System, with like effect as if its insured 
status had been terminated on said date by the Board of 
Directors after proceedings under subsection (a) of this 
section. Whenever the insured status of an insured Federal 
savings bank shall be terminated by action of the Board of 
Directors, the Comptroller of the Currency shall appoint a 
receiver for the bank, which shall be the Corporation.
  (p) Notwithstanding any other provision of law, whenever the 
Board of Directors shall determine that an insured depository 
institution is not engaged in the business of receiving 
deposits, other than trust funds as herein defined, the 
Corporation shall notify the depository institution that its 
insured status will terminate at the expiration of the first 
full assessment period following such notice. A finding by the 
Board of Directors that a depository institution is not engaged 
in the business of receiving deposits, other than such trust 
funds, shall be conclusive. The Board of Directors shall 
prescribe the notice to be given by the depository institution 
of such termination and the Corporation may publish notice 
thereof. Upon the termination of the insured status of any such 
depository institution, its deposits shall thereupon cease to 
be insured and the depository institution shall thereafter be 
relieved of all future obligations to the Corporation, 
including the obligation to pay future assessments.
  (q) Whenever the liabilities of an insured depository 
institution for deposits shall have been assumed by another 
insured depository institution or depository institutions, 
whether by way of merger, consolidation, or other statutory 
assumption, or pursuant to contract (1) the insured status of 
the depository institution whose liabilities are so assumed 
shall terminate on the date of receipt by the Corporation of 
satisfactory evidence of such assumption; (2) the separate 
insurance of all deposits so assumed shall terminate at the end 
of six months from the date such assumption takes effect or, in 
the case of any time deposit, the earliest maturity date after 
the six-month period. Where the deposits of an insured 
depository institution are assumed by a newly insured 
depository institution, the depository institution whose 
deposits are assumed shall not be required to pay any 
assessment with respect to the deposits which have been so 
assumed after the assessment period in which the assumption 
takes effect.
  (r)(1) Except as otherwise specifically provided in this 
section, the provisions of this section shall be applied to 
foreign banks in accordance with this subsection.
  (2) An act or practice outside the United States on the part 
of a foreign bank or any officer, director, employee, or agent 
thereof may not constitute the basis for any action by any 
officer or agency of the United States under this section, 
unless--
          (A) such officer or agency alleges a belief that such 
        act or practice has been, is, or is likely to be a 
        cause of or carried on in connection with or in 
        furtherance of an act or practice within any one or 
        more States which, in and of itself, would constitute 
        an appropriate basis for action by a Federal officer or 
        agency under this section; or
          (B) the alleged act or practice is one which, if 
        proven, would, in the judgment of the Board of 
        Directors, adversely affect the insurance risk assumed 
        by the Corporation.
  (3) In any case in which any action or proceeding is brought 
pursuant to an allegation under paragraph (2) of this 
subsection for the suspension or removal of any officer, 
director, or other person associated with a foreign bank, and 
such person fails to appear promptly as a party to such action 
or proceeding and to comply with any effective order or 
judgment therein, any failure by the foreign bank to secure his 
removal from any office he holds in such bank and from any 
further participation in its affairs shall, in and of itself, 
constitute grounds for termination of the insurance of the 
deposits in any branch of the bank.
  (4) Where the venue of any judicial or administrative 
proceeding under this section is to be determined by reference 
to the location of the home office of a bank, the venue of such 
a proceeding with respect to a foreign bank having one or more 
branches or agencies in not more than one judicial district or 
other relevant jurisdiction shall be within such jurisdiction. 
Where such a bank has branches or agencies in more than one 
such jurisdiction, the venue shall be in the jurisdiction 
within which the branch or branches or agency or agencies 
involved in the proceeding are located, and if there is more 
than one such jurisdiction, the venue shall be proper in any 
such jurisdiction in which the proceeding is brought or to 
which it may appropriately be transferred.
  (5) Any service required or authorized to be made on a 
foreign bank may be made on any branch or agency located within 
any State, but if such service is in connection with an action 
or proceeding involving one or more branches or one or more 
agencies located in any State, service shall be made on at 
least one branch or agency so involved.
  (s) Compliance With Monetary Transaction Recordkeeping and 
Report Requirements.--
          (1) Compliance procedures required.--Each appropriate 
        Federal banking agency shall prescribe regulations 
        requiring insured depository institutions to establish 
        and maintain procedures reasonably designed to assure 
        and monitor the compliance of such depository 
        institutions with the requirements of subchapter II of 
        chapter 53 of title 31, United States Code.
          (2) Examinations of depository institution to include 
        review of compliance procedures.--
                  (A) In general.--Each examination of an 
                insured depository institution by the 
                appropriate Federal banking agency shall 
                include a review of the procedures required to 
                be established and maintained under paragraph 
                (1).
                  (B) Exam report requirement.--The report of 
                examination shall describe any problem with the 
                procedures maintained by the insured depository 
                institution.
          (3) Order to comply with requirements.--If the 
        appropriate Federal banking agency determines that an 
        insured depository institution--
                  (A) has failed to establish and maintain the 
                procedures described in paragraph (1); or
                  (B) has failed to correct any problem with 
                the procedures maintained by such depository 
                institution which was previously reported to 
                the depository institution by such agency,
        the agency shall issue an order in the manner 
        prescribed in subsection (b) or (c) requiring such 
        depository institution to cease and desist from its 
        violation of this subsection or regulations prescribed 
        under this subsection.
  (t) Authority of FDIC To Take Enforcement Action Against 
Insured Depository Institutions and Institution-Affiliated 
Parties.--
          (1) Recommending action by appropriate federal 
        banking agency.--The Corporation, based on an 
        examination of an insured depository institution by the 
        Corporation or by the appropriate Federal banking 
        agency or on other information, may recommend in 
        writing to the appropriate Federal banking agency that 
        the agency take any enforcement action authorized under 
        section 7(j), this section, or section 18(j) with 
        respect to any insured depository institution, any 
        depository institution holding company, or any 
        institution-affiliated party. The recommendation shall 
        be accompanied by a written explanation of the concerns 
        giving rise to the recommendation.
          (2) FDIC's authority to act if appropriate federal 
        banking agency fails to follow recommendation.--If the 
        appropriate Federal banking agency does not, before the 
        end of the 60-day period beginning on the date on which 
        the agency receives the recommendation under paragraph 
        (1), take the enforcement action recommended by the 
        Corporation or provide a plan acceptable to the 
        Corporation for responding to the Corporation's 
        concerns, the Corporation may take the recommended 
        enforcement action if the Board of Directors 
        determines, upon a vote of its members, that--
                  (A) the insured depository institution is in 
                an unsafe or unsound condition;
                  (B) the institution or institution-affiliated 
                party is engaging in unsafe or unsound 
                practices, and the recommended enforcement 
                action will prevent the institution or 
                institution-affiliated party from continuing 
                such practices;
                  (C) the conduct or threatened conduct 
                (including any acts or omissions) poses a risk 
                to the Deposit Insurance Fund, or may prejudice 
                the interests of the institution's depositors 
                or
                  (D) the conduct or threatened conduct 
                (including any acts or omissions) of the 
                depository institution holding company poses a 
                risk to the Deposit Insurance Fund, provided 
                that such authority may not be used with 
                respect to a depository institution holding 
                company that is in generally sound condition 
                and whose conduct does not pose a foreseeable 
                and material risk of loss to the Deposit 
                Insurance Fund;
          (3) Effect of exigent circumstances.--
                  (A) Authority to act.--The Corporation may, 
                upon a vote of the Board of Directors, and 
                after notice to the appropriate Federal banking 
                agency, exercise its authority under paragraph 
                (2) in exigent circumstances without regard to 
                the time period set forth in paragraph (2).
                  (B) Agreement on exigent circumstances.--The 
                Corporation shall, by agreement with the 
                appropriate Federal banking agency, set forth 
                those exigent circumstances in which the 
                Corporation may act under subparagraph (A).
          (4) Corporation's powers; institution's duties.--For 
        purposes of this subsection--
                  (A) the Corporation shall have the same 
                powers with respect to any insured depository 
                institution and its affiliates as the 
                appropriate Federal banking agency has with 
                respect to the institution and its affiliates; 
                and
                  (B) the institution and its affiliates shall 
                have the same duties and obligations with 
                respect to the Corporation as the institution 
                and its affiliates have with respect to the 
                appropriate Federal banking agency.
          (5) Requests for formal actions and investigations.--
                  (A) Submission of requests.--A regional 
                office of an appropriate Federal banking agency 
                (including a Federal Reserve bank) that 
                requests a formal investigation of or civil 
                enforcement action against an insured 
                depository institution or institution-
                affiliated party shall submit the request 
                concurrently to the chief officer of the 
                appropriate Federal banking agency and to the 
                Corporation.
                  (B) Agencies required to report on 
                requests.--Each appropriate Federal banking 
                agency shall report semiannually to the 
                Corporation on the status or disposition of all 
                requests under subparagraph (A), including the 
                reasons for any decision by the agency to 
                approve or deny such requests.
          (6) Powers and duties with respect to depository 
        institution holding companies.--For purposes of 
        exercising the backup authority provided in this 
        subsection--
                  (A) the Corporation shall have the same 
                powers with respect to a depository institution 
                holding company and its affiliates as the 
                appropriate Federal banking agency has with 
                respect to the holding company and its 
                affiliates; and
                  (B) the holding company and its affiliates 
                shall have the same duties and obligations with 
                respect to the Corporation as the holding 
                company and its affiliates have with respect to 
                the appropriate Federal banking agency.
          (6) Referral to [bureau of consumer financial 
        protection] consumer financial protection bureau.--
        Subject to subtitle B of the Consumer Financial 
        Protection Act of 2010, each appropriate Federal 
        banking agency shall make a referral to the [Bureau of 
        Consumer Financial Protection] Consumer Financial 
        Protection Bureau when the Federal banking agency has a 
        reasonable belief that a violation of an enumerated 
        consumer law, as defined in the Consumer Financial 
        Protection Act of 2010, has been committed by any 
        insured depository institution or institution-
        affiliated party within the jurisdiction of that 
        appropriate Federal banking agency.
  (u) Public Disclosures of Final Orders and Agreements.--
          (1) In general.--The appropriate Federal banking 
        agency shall publish and make available to the public 
        on a monthly basis--
                  (A) any written agreement or other written 
                statement for which a violation may be enforced 
                by the appropriate Federal banking agency, 
                unless the appropriate Federal banking agency, 
                in its discretion, determines that publication 
                would be contrary to the public interest;
                  (B) any final order issued with respect to 
                any administrative enforcement proceeding 
                initiated by such agency under this section or 
                any other law; and
                  (C) any modification to or termination of any 
                order or agreement made public pursuant to this 
                paragraph.
          (2) Hearings.--All hearings on the record with 
        respect to any notice of charges issued by a Federal 
        banking agency shall be open to the public, unless the 
        agency, in its discretion, determines that holding an 
        open hearing would be contrary to the public interest.
          (3) Transcript of hearing.--A transcript that 
        includes all testimony and other documentary evidence 
        shall be prepared for all hearings commenced pursuant 
        to subsection (i). A transcript of public hearings 
        shall be made available to the public pursuant to 
        section 552 of title 5, United States Code.
          (4) Delay of publication under exceptional 
        circumstances.--If the appropriate Federal banking 
        agency makes a determination in writing that the 
        publication of a final order pursuant to paragraph 
        (1)(B) would seriously threaten the safety and 
        soundness of an insured depository institution, the 
        agency may delay the publication of the document for a 
        reasonable time.
          (5) Documents filed under seal in public enforcement 
        hearings.--The appropriate Federal banking agency may 
        file any document or part of a document under seal in 
        any administrative enforcement hearing commenced by the 
        agency if disclosure of the document would be contrary 
        to the public interest. A written report shall be made 
        part of any determination to withhold any part of a 
        document from the transcript of the hearing required by 
        paragraph (2).
          (6) Retention of documents.--Each Federal banking 
        agency shall keep and maintain a record, for a period 
        of at least 6 years, of all documents described in 
        paragraph (1) and all informal enforcement agreements 
        and other supervisory actions and supporting documents 
        issued with respect to or in connection with any 
        administrative enforcement proceeding initiated by such 
        agency under this section or any other laws.
          (7) Disclosures to congress.--No provision of this 
        subsection may be construed to authorize the 
        withholding, or to prohibit the disclosure, of any 
        information to the Congress or any committee or 
        subcommittee of the Congress.
  (v) Foreign Investigations.--
          (1) Requesting assistance from foreign banking 
        authorities.--In conducting any investigation, 
        examination, or enforcement action under this Act, the 
        appropriate Federal banking agency may--
                  (A) request the assistance of any foreign 
                banking authority; and
                  (B) maintain an office outside the United 
                States.
          (2) Providing assistance to foreign banking 
        authorities.--
                  (A) In general.--Any appropriate Federal 
                banking agency may, at the request of any 
                foreign banking authority, assist such 
                authority if such authority states that the 
                requesting authority is conducting an 
                investigation to determine whether any person 
                has violated, is violating, or is about to 
                violate any law or regulation relating to 
                banking matters or currency transactions 
                administered or enforced by the requesting 
                authority.
                  (B) Investigation by federal banking 
                agency.--Any appropriate Federal banking agency 
                may, in such agency's discretion, investigate 
                and collect information and evidence pertinent 
                to a request for assistance under subparagraph 
                (A). Any such investigation shall comply with 
                the laws of the United States and the policies 
                and procedures of the appropriate Federal 
                banking agency.
                  (C) Factors to consider.--In deciding whether 
                to provide assistance under this paragraph, the 
                appropriate Federal banking agency shall 
                consider--
                          (i) whether the requesting authority 
                        has agreed to provide reciprocal 
                        assistance with respect to banking 
                        matters within the jurisdiction of any 
                        appropriate Federal banking agency; and
                          (ii) whether compliance with the 
                        request would prejudice the public 
                        interest of the United States.
                  (D) Treatment of foreign banking authority.--
                For purposes of any Federal law or appropriate 
                Federal banking agency regulation relating to 
                the collection or transfer of information by 
                any appropriate Federal banking agency, the 
                foreign banking authority shall be treated as 
                another appropriate Federal banking agency.
          (3) Rule of construction.--Paragraphs (1) and (2) 
        shall not be construed to limit the authority of an 
        appropriate Federal banking agency or any other Federal 
        agency to provide or receive assistance or information 
        to or from any foreign authority with respect to any 
        matter.
  (w) Termination of Insurance for Money Laundering or Cash 
Transaction Reporting Offenses.--
          (1) In general.--
                  (A) Conviction of title 18 offenses.--
                          (i) Duty to notify.--If an insured 
                        State depository institution has been 
                        convicted of any criminal offense under 
                        section 1956 or 1957 of title 18, 
                        United States Code, the Attorney 
                        General shall provide to the 
                        Corporation a written notification of 
                        the conviction and shall include a 
                        certified copy of the order of 
                        conviction from the court rendering the 
                        decision.
                          (ii) Notice of termination; 
                        pretermination hearing.--After receipt 
                        of written notification from the 
                        Attorney General by the Corporation of 
                        such a conviction, the Board of 
                        Directors shall issue to the insured 
                        depository institution a notice of its 
                        intention to terminate the insured 
                        status of the insured depository 
                        institution and schedule a hearing on 
                        the matter, which shall be conducted in 
                        all respects as a termination hearing 
                        pursuant to paragraphs (3) through (5) 
                        of subsection (a).
                  (B) Conviction of title 31 offenses.--If an 
                insured State depository institution is 
                convicted of any criminal offense under section 
                5322 or 5324 of title 31, United States Code, 
                after receipt of written notification from the 
                Attorney General by the Corporation, the Board 
                of Directors may initiate proceedings to 
                terminate the insured status of the insured 
                depository institution in the manner described 
                in subparagraph (A).
                  (C) Notice to state supervisor.--The 
                Corporation shall simultaneously transmit a 
                copy of any notice issued under this paragraph 
                to the appropriate State financial institutions 
                supervisor.
          (2) Factors to be considered.--In determining whether 
        to terminate insurance under paragraph (1), the Board 
        of Directors shall take into account the following 
        factors:
                  (A) The extent to which directors or senior 
                executive officers of the depository 
                institution knew of, or were involved in, the 
                commission of the money laundering offense of 
                which the institution was found guilty.
                  (B) The extent to which the offense occurred 
                despite the existence of policies and 
                procedures within the depository institution 
                which were designed to prevent the occurrence 
                of any such offense.
                  (C) The extent to which the depository 
                institution has fully cooperated with law 
                enforcement authorities with respect to the 
                investigation of the money laundering offense 
                of which the institution was found guilty.
                  (D) The extent to which the depository 
                institution has implemented additional internal 
                controls (since the commission of the offense 
                of which the depository institution was found 
                guilty) to prevent the occurrence of any other 
                money laundering offense.
                  (E) The extent to which the interest of the 
                local community in having adequate deposit and 
                credit services available would be threatened 
                by the termination of insurance.
          (3) Notice to state banking supervisor and public.--
        When the order to terminate insured status initiated 
        pursuant to this subsection is final, the Board of 
        Directors shall--
                  (A) notify the State banking supervisor of 
                any State depository institution described in 
                paragraph (1), where appropriate, at least 10 
                days prior to the effective date of the order 
                of termination of the insured status of such 
                depository institution, including a State 
                branch of a foreign bank; and
                  (B) publish notice of the termination of the 
                insured status of the depository institution in 
                the Federal Register.
          (4) Temporary insurance of previously insured 
        deposits.--Upon termination of the insured status of 
        any State depository institution pursuant to paragraph 
        (1), the deposits of such depository institution shall 
        be treated in accordance with subsection (a)(7).
          (5) Successor liability.--This subsection shall not 
        apply to a successor to the interests of, or a person 
        who acquires, an insured depository institution that 
        violated a provision of law described in paragraph (1), 
        if the successor succeeds to the interests of the 
        violator, or the acquisition is made, in good faith and 
        not for purposes of evading this subsection or 
        regulations prescribed under this subsection.
          (6) Definition.--The term ``senior executive 
        officer'' has the same meaning as in regulations 
        prescribed under section 32(f) of this Act.

           *       *       *       *       *       *       *

  Sec. 11. (a) Deposit Insurance.--
          (1) Insured amounts payable.--
                  (A) In general.--The Corporation shall insure 
                the deposits of all insured depository 
                institutions as provided in this Act.
                  (B) Net amount of insured deposit.--The net 
                amount to any depositor at an insured 
                depository institution shall not exceed the 
                standard maximum deposit insurance amount as 
                determined in accordance with subparagraphs 
                (C), (D), (E) and (F) and paragraph (3).
                  (C) Aggregation of deposits.--For the purpose 
                of determining the net amount due to any 
                depositor under subparagraph (B), the 
                Corporation shall aggregate the amounts of all 
                deposits in the insured depository institution 
                which are maintained by a depositor in the same 
                capacity and the same right for the benefit of 
                the depositor either in the name of the 
                depositor or in the name of any other person, 
                other than any amount in a trust fund described 
                in paragraph (1) or (2) of section 7(i) or any 
                funds described in section 7(i)(3).
                  (D) Coverage for certain employee benefit 
                plan deposits.--
                          (i) Pass-through insurance.--The 
                        Corporation shall provide pass-through 
                        deposit insurance for the deposits of 
                        any employee benefit plan.
                          (ii) Prohibition on acceptance of 
                        benefit plan deposits.--An insured 
                        depository institution that is not well 
                        capitalized or adequately capitalized 
                        may not accept employee benefit plan 
                        deposits.
                          (iii) Definitions.--For purposes of 
                        this subparagraph, the following 
                        definitions shall apply:
                                  (I) Capital standards.--The 
                                terms ``well capitalized'' and 
                                ``adequately capitalized'' have 
                                the same meanings as in section 
                                38.
                                  (II) Employee benefit plan.--
                                The term ``employee benefit 
                                plan'' has the same meaning as 
                                in paragraph (5)(B)(ii), and 
                                includes any eligible deferred 
                                compensation plan described in 
                                section 457 of the Internal 
                                Revenue Code of 1986.
                                  (III) Pass-through deposit 
                                insurance.--The term ``pass-
                                through deposit insurance'' 
                                means, with respect to an 
                                employee benefit plan, deposit 
                                insurance coverage based on the 
                                interest of each participant, 
                                in accordance with regulations 
                                issued by the Corporation.
                  (E) Standard maximum deposit insurance amount 
                defined.--For purposes of this Act, the term 
                ``standard maximum deposit insurance amount'' 
                means $250,000, adjusted as provided under 
                subparagraph (F) after March 31, 2010. 
                Notwithstanding any other provision of law, the 
                increase in the standard maximum deposit 
                insurance amount to $250,000 shall apply to 
                depositors in any institution for which the 
                Corporation was appointed as receiver or 
                conservator on or after January 1, 2008, and 
                before October 3, 2008. The Corporation shall 
                take such actions as are necessary to carry out 
                the requirements of this section with respect 
                to such depositors, without regard to any time 
                limitations under this Act. In implementing 
                this and the preceding 2 sentences, any payment 
                on a deposit claim made by the Corporation as 
                receiver or conservator to a depositor above 
                the standard maximum deposit insurance amount 
                in effect at the time of the appointment of the 
                Corporation as receiver or conservator shall be 
                deemed to be part of the net amount due to the 
                depositor under subparagraph (B).
                  (F) Inflation adjustment.--
                          (i) In general.--By April 1 of 2010, 
                        and the 1st day of each subsequent 5-
                        year period, the Board of Directors and 
                        the National Credit Union 
                        Administration Board shall jointly 
                        consider the factors set forth under 
                        clause (v), and, upon determining that 
                        an inflation adjustment is appropriate, 
                        shall jointly prescribe the amount by 
                        which the standard maximum deposit 
                        insurance amount and the standard 
                        maximum share insurance amount (as 
                        defined in section 207(k) of the 
                        Federal Credit Union Act) applicable to 
                        any depositor at an insured depository 
                        institution shall be increased by 
                        calculating the product of--
                                  (I) $100,000; and
                                  (II) the ratio of the 
                                published annual value of the 
                                Personal Consumption 
                                Expenditures Chain-Type Price 
                                Index (or any successor index 
                                thereto), published by the 
                                Department of Commerce, for the 
                                calendar year preceding the 
                                year in which the adjustment is 
                                calculated under this clause, 
                                to the published annual value 
                                of such index for the calendar 
                                year preceding the date this 
                                subparagraph takes effect under 
                                the Federal Deposit Insurance 
                                Reform Act of 2005.
                        The values used in the calculation 
                        under subclause (II) shall be, as of 
                        the date of the calculation, the values 
                        most recently published by the 
                        Department of Commerce.
                          (ii) Rounding.--If the amount 
                        determined under clause (ii) for any 
                        period is not a multiple of $10,000, 
                        the amount so determined shall be 
                        rounded down to the nearest $10,000.
                          (iii) Publication and report to the 
                        congress.--Not later than April 5 of 
                        any calendar year in which an 
                        adjustment is required to be calculated 
                        under clause (i) to the standard 
                        maximum deposit insurance amount and 
                        the standard maximum share insurance 
                        amount under such clause, the Board of 
                        Directors and the National Credit Union 
                        Administration Board shall--
                                  (I) publish in the Federal 
                                Register the standard maximum 
                                deposit insurance amount, the 
                                standard maximum share 
                                insurance amount, and the 
                                amount of coverage under 
                                paragraph (3)(A) and section 
                                207(k)(3) of the Federal Credit 
                                Union Act, as so calculated; 
                                and
                                  (II) jointly submit a report 
                                to the Congress containing the 
                                amounts described in subclause 
                                (I).
                          (iv)  6-month implementation 
                        period.--Unless an Act of Congress 
                        enacted before July 1 of the calendar 
                        year in which an adjustment is required 
                        to be calculated under clause (i) 
                        provides otherwise, the increase in the 
                        standard maximum deposit insurance 
                        amount and the standard maximum share 
                        insurance amount shall take effect on 
                        January 1 of the year immediately 
                        succeeding such calendar year.
                          (v) Inflation adjustment 
                        consideration.--In making any 
                        determination under clause (i) to 
                        increase the standard maximum deposit 
                        insurance amount and the standard 
                        maximum share insurance amount, the 
                        Board of Directors and the National 
                        Credit Union Administration Board shall 
                        jointly consider--
                                  (I) the overall state of the 
                                Deposit Insurance Fund and the 
                                economic conditions affecting 
                                insured depository 
                                institutions;
                                  (II) potential problems 
                                affecting insured depository 
                                institutions; or
                                  (III) whether the increase 
                                will cause the reserve ratio of 
                                the fund to fall below 1.15 
                                percent of estimated insured 
                                deposits.
          (2) Government depositors.--
                  (A) In general.--Notwithstanding any 
                limitation in this Act or in any other 
                provision of law relating to the amount of 
                deposit insurance available to any 1 
                depositor--
                          (i) a government depositor shall, for 
                        the purpose of determining the amount 
                        of insured deposits under this 
                        subsection, be deemed to be a depositor 
                        separate and distinct from any other 
                        officer, employee, or agent of the 
                        United States or any public unit 
                        referred to in subparagraph (B); and
                          (ii) except as provided in 
                        subparagraph (C), the deposits of a 
                        government depositor shall be insured 
                        in an amount equal to the standard 
                        maximum deposit insurance amount (as 
                        determined under paragraph (1)).
                  (B) Government depositor.--In this paragraph, 
                the term ``government depositor'' means a 
                depositor that 
                is--
                          (i) an officer, employee, or agent of 
                        the United States having official 
                        custody of public funds and lawfully 
                        investing or depositing the same in 
                        time and savings deposits in an insured 
                        depository institution;
                          (ii) an officer, employee, or agent 
                        of any State of the United States, or 
                        of any county, municipality, or 
                        political subdivision thereof having 
                        official custody of public funds and 
                        lawfully investing or depositing the 
                        same in time and savings deposits in an 
                        insured depository institution in such 
                        State;
                          (iii) an officer, employee, or agent 
                        of the District of Columbia having 
                        official custody of public funds and 
                        lawfully investing or depositing the 
                        same in time and savings deposits in an 
                        insured depository institution in the 
                        District of Columbia;
                          (iv) an officer, employee, or agent 
                        of the Commonwealth of Puerto Rico, of 
                        the Virgin Islands, of American Samoa, 
                        of the Trust Territory of the Pacific 
                        Islands, or of Guam, or of any county, 
                        municipality, or political subdivision 
                        thereof having official custody of 
                        public funds and lawfully investing or 
                        depositing the same in time and savings 
                        deposits in an insured depository 
                        institution in the Commonwealth of 
                        Puerto Rico, the Virgin Islands, 
                        American Samoa, the Trust Territory of 
                        the Pacific Islands, or Guam, 
                        respectively; or
                          (v) an officer, employee, or agent of 
                        any Indian tribe (as defined in section 
                        3(c) of the Indian Financing Act of 
                        1974) or agency thereof having official 
                        custody of tribal funds and lawfully 
                        investing or depositing the same in 
                        time and savings deposits in an insured 
                        depository institution.
                  (C) Authority to limit deposits.--The 
                Corporation may limit the aggregate amount of 
                funds that may be invested or deposited in 
                deposits in any insured depository institution 
                by any government depositor on the basis of the 
                size of any such bank in terms of its assets: 
                Provided, however, such limitation may be 
                exceeded by the pledging of acceptable 
                securities to the government depositor when and 
                where required.
          (3) Certain retirement accounts.--
                  (A) In general.--Notwithstanding any 
                limitation in this Act relating to the amount 
                of deposit insurance available for the account 
                of any 1 depositor, deposits in an insured 
                depository institution made in connection 
                with--
                          (i) any individual retirement account 
                        described in section 408(a) of the 
                        Internal Revenue Code of 1986;
                          (ii) subject to the exception 
                        contained in paragraph (1)(D)(ii), any 
                        eligible deferred compensation plan 
                        described in section 457 of such Code; 
                        and
                          (iii) any individual account plan 
                        defined in section 3(34) of the 
                        Employee Retirement Income Security 
                        Act, and any plan described in section 
                        401(d) of the Internal Revenue Code of 
                        1986, to the extent that participants 
                        and beneficiaries under such plan have 
                        the right to direct the investment of 
                        assets held in individual accounts 
                        maintained on their behalf by the plan,
                shall be aggregated and insured in an amount 
                not to exceed $250,000 (which amount shall be 
                subject to inflation adjustments as provided in 
                paragraph (1)(F), except that $250,000 shall be 
                substituted for $100,000 wherever such term 
                appears in such paragraph) per participant per 
                insured depository institution.
                  (B) Amounts taken into account.--For purposes 
                of subparagraph (A), the amount aggregated for 
                insurance coverage under this paragraph shall 
                consist of the present vested and ascertainable 
                interest of each participant under the plan, 
                excluding any remainder interest created by, or 
                as a result of, the plan.
          (4) Deposit insurance fund.--
                  (A) Establishment.--There is established the 
                Deposit Insurance Fund, which the Corporation 
                shall--
                          (i) maintain and administer;
                          (ii) use to carry out its insurance 
                        purposes, in the manner provided by 
                        this subsection; and
                          (iii) invest in accordance with 
                        section 13(a).
                  (B) Uses.--The Deposit Insurance Fund shall 
                be available to the Corporation for use with 
                respect to insured depository institutions the 
                deposits of which are insured by the Deposit 
                Insurance Fund.
                  (C) Limitation on use.--Notwithstanding any 
                provision of law other than section 
                13(c)(4)(G), the Deposit Insurance Fund shall 
                not be used in any manner to benefit any 
                shareholder or affiliate (other than an insured 
                depository institution that receives assistance 
                in accordance with the provisions of this Act) 
                of--
                          (i) any insured depository 
                        institution for which the Corporation 
                        has been appointed conservator or 
                        receiver, in connection with any type 
                        of resolution by the Corporation;
                          (ii) any other insured depository 
                        institution in default or in danger of 
                        default, in connection with any type of 
                        resolution by the Corporation; or
                          (iii) any insured depository 
                        institution, in connection with the 
                        provision of assistance under this 
                        section or section 13 with respect to 
                        such institution, except that this 
                        clause shall not prohibit any 
                        assistance to any insured depository 
                        institution that is not in default, or 
                        that is not in danger of default, that 
                        is acquiring (as defined in section 
                        13(f)(8)(B)) another insured depository 
                        institution.
                  (D) Deposits.--All amounts assessed against 
                insured depository institutions by the 
                Corporation shall be deposited into the Deposit 
                Insurance Fund.
          (5) Certain investment contracts not treated as 
        insured deposits.--
                  (A) In general.--A liability of an insured 
                depository institution shall not be treated as 
                an insured deposit if the liability arises 
                under any insured depository institution 
                investment contract between any insured 
                depository institution and any employee benefit 
                plan which expressly permits benefit-responsive 
                withdrawals or transfers.
                  (B) Definitions.--For purposes of 
                subparagraph (A)--
                          (i) Benefit-responsive withdrawals or 
                        transfers.--The term ``benefit-
                        responsive withdrawals or transfers'' 
                        means any withdrawal or transfer of 
                        funds (consisting of any portion of the 
                        principal and any interest credited at 
                        a rate guaranteed by the insured 
                        depository institution investment 
                        contract) during the period in which 
                        any guaranteed rate is in effect, 
                        without substantial penalty or 
                        adjustment, to pay benefits provided by 
                        the employee benefit plan or to permit 
                        a plan participant or beneficiary to 
                        redirect the investment of his or her 
                        account balance.
                          (ii) Employee benefit plan.--The term 
                        ``employee benefit plan''--
                                  (I) has the meaning given to 
                                such term in section 3(3) of 
                                the Employee Retirement Income 
                                Security Act of 1974; and
                                  (II) includes any plan 
                                described in section 401(d) of 
                                the Internal Revenue Code of 
                                1986.
  (b) For the purposes of this Act an insured depository 
institution shall be deemed to have been closed on account of 
inability to meet the demands of its depositors in any case in 
which it has been closed for the purpose of liquidation without 
adequate provision being made for payment of its depositors.
  (c) Appointment of Corporation as Conservator or Receiver.--
          (1) In general.--Notwithstanding any other provision 
        of Federal law, the law of any State, or the 
        constitution of any State, the Corporation may accept 
        appointment and act as conservator or receiver for any 
        insured depository institution upon appointment in the 
        manner provided in paragraph (2) or (3).
          (2) Federal depository institutions.--
                  (A) Appointment.--
                          (i) Conservator.--The Corporation 
                        may, at the discretion of the 
                        supervisory authority, be appointed 
                        conservator of any insured Federal 
                        depository institution and the 
                        Corporation may accept such 
                        appointment.
                          (ii) Receiver.--The Corporation shall 
                        be appointed receiver, and shall accept 
                        such appointment, whenever a receiver 
                        is appointed for the purpose of 
                        liquidation or winding up the affairs 
                        of an insured Federal depository 
                        institution by the appropriate Federal 
                        banking agency, notwithstanding any 
                        other provision of Federal law.
                  (B) Additional powers.--In addition to and 
                not in derogation of the powers conferred and 
                the duties imposed by this section on the 
                Corporation as conservator or receiver, the 
                Corporation, to the extent not inconsistent 
                with such powers and duties, shall have any 
                other power conferred on or any duty (which is 
                related to the exercise of such power) imposed 
                on a conservator or receiver for any Federal 
                depository institution under any other 
                provision of law.
                  (C) Corporation not subject to any other 
                agency.--When acting as conservator or receiver 
                pursuant to an appointment described in 
                subparagraph (A), the Corporation shall not be 
                subject to the direction or supervision of any 
                other agency or department of the United States 
                or any State in the exercise of the 
                Corporation's rights, powers, and privileges.
                  (D) Depository institution in conservatorship 
                subject to banking agency supervision.--
                Notwithstanding subparagraph (C), any Federal 
                depository institution for which the 
                Corporation has been appointed conservator 
                shall remain subject to the supervision of the 
                appropriate Federal banking agency.
          (3) Insured state depository institutions.--
                  (A) Appointment by appropriate state 
                supervisor.--Whenever the authority having 
                supervision of any insured State depository 
                institution appoints a conservator or receiver 
                for such institution and tenders appointment to 
                the Corporation, the Corporation may accept 
                such appointment.
                  (B) Additional powers.--In addition to the 
                powers conferred and the duties related to the 
                exercise of such powers imposed by State law on 
                any conservator or receiver appointed under the 
                law of such State for an insured State 
                depository institution, the Corporation, as 
                conservator or receiver pursuant to an 
                appointment described in subparagraph (A), 
                shall have the powers conferred and the duties 
                imposed by this section on the Corporation as 
                conservator or receiver.
                  (C) Corporation not subject to any other 
                agency.--When acting as conservator or receiver 
                pursuant to an appointment described in 
                subparagraph (A), the Corporation shall not be 
                subject to the direction or supervision of any 
                other agency or department of the United States 
                or any State in the exercise of its rights, 
                powers, and privileges.
                  (D) Depository institution in conservatorship 
                subject to banking agency supervision.--
                Notwithstanding subparagraph (C), any insured 
                State depository institution for which the 
                Corporation has been appointed conservator 
                shall remain subject to the supervision of the 
                appropriate State bank or savings association 
                supervisor.
          (4) Appointment of corporation by the corporation.--
        Notwithstanding any other provision of Federal law, the 
        law of any State, or the constitution of any State, the 
        Corporation may appoint itself as sole conservator or 
        receiver of any insured State depository institution 
        if--
                  (A) the Corporation determines--
                          (i) that--
                                  (I) a conservator, receiver, 
                                or other legal custodian has 
                                been appointed for such 
                                institution;
                                  (II) such institution has 
                                been subject to the appointment 
                                of any such conservator, 
                                receiver, or custodian for a 
                                period of at least 15 
                                consecutive days; and
                                  (III) 1 or more of the 
                                depositors in such institution 
                                is unable to withdraw any 
                                amount of any insured deposit; 
                                or
                          (ii) that such institution has been 
                        closed by or under the laws of any 
                        State; and
                  (B) the Corporation determines that 1 or more 
                of the grounds specified in paragraph (5)--
                          (i) existed with respect to such 
                        institution at the time--
                                  (I) the conservator, 
                                receiver, or other legal 
                                custodian was appointed; or
                                  (II) such institution was 
                                closed; or
                          (ii) exist at any time--
                                  (I) during the appointment of 
                                the conservator, receiver, or 
                                other legal custodian; or
                                  (II) while such institution 
                                is closed.
          (5) Grounds for appointing conservator or receiver.--
        The grounds for appointing a conservator or receiver 
        (which may be the Corporation) for any insured 
        depository institution are as follows:
                  (A) Assets insufficient for obligations.--The 
                institution's assets are less than the 
                institution's obligations to its creditors and 
                others, including members of the institution.
                  (B) Substantial dissipation.--Substantial 
                dissipation of assets or earnings due to--
                          (i) any violation of any statute or 
                        regulation; or
                          (ii) any unsafe or unsound practice.
                  (C) Unsafe or unsound condition.--An unsafe 
                or unsound condition to transact business.
                  (D) Cease and desist orders.--Any willful 
                violation of a cease-and-desist order which has 
                become final.
                  (E) Concealment.--Any concealment of the 
                institution's books, papers, records, or 
                assets, or any refusal to submit the 
                institution's books, papers, records, or 
                affairs for inspection to any examiner or to 
                any lawful agent of the appropriate Federal 
                banking agency or State bank or savings 
                association supervisor.
                  (F) Inability to meet obligations.--The 
                institution is likely to be unable to pay its 
                obligations or meet its depositors' demands in 
                the normal course of business.
                  (G) Losses.--The institution has incurred or 
                is likely to incur losses that will deplete all 
                or substantially all of its capital, and there 
                is no reasonable prospect for the institution 
                to become adequately capitalized (as defined in 
                section 38(b)) without Federal assistance.
                  (H) Violations of law.--Any violation of any 
                law or regulation, or any unsafe or unsound 
                practice or condition that is likely to--
                          (i) cause insolvency or substantial 
                        dissipation of assets or earnings;
                          (ii) weaken the institution's 
                        condition; or
                          (iii) otherwise seriously prejudice 
                        the interests of the institution's 
                        depositors or the Deposit Insurance 
                        Fund.
                  (I) Consent.--The institution, by resolution 
                of its board of directors or its shareholders 
                or members, consents to the appointment.
                  (J) Cessation of insured status.--The 
                institution ceases to be an insured 
                institution.
                  (K) Undercapitalization.--The institution is 
                undercapitalized (as defined in section 38(b)), 
                and--
                          (i) has no reasonable prospect of 
                        becoming adequately capitalized (as 
                        defined in that section);
                          (ii) fails to become adequately 
                        capitalized when required to do so 
                        under section 38(f)(2)(A);
                          (iii) fails to submit a capital 
                        restoration plan acceptable to that 
                        agency within the time prescribed under 
                        section 38(e)(2)(D); or
                          (iv) materially fails to implement a 
                        capital restoration plan submitted and 
                        accepted under section 38(e)(2).
                  (L) The institution--
                          (i) is critically undercapitalized, 
                        as defined in section 38(b); or
                          (ii) otherwise has substantially 
                        insufficient capital.
                  (M) Money laundering offense.--The Attorney 
                General notifies the appropriate Federal 
                banking agency or the Corporation in writing 
                that the insured depository institution has 
                been found guilty of a criminal offense under 
                section 1956 or 1957 of title 18, United States 
                Code, or section 5322 or 5324 of title 31, 
                United States Code.
          (6) Appointment by comptroller of the currency.--
                  (A) Conservator.--The Corporation may, at the 
                discretion of the Comptroller of the Currency, 
                be appointed conservator and the Corporation 
                may accept any such appointment.
                  (B) Receiver.--The Corporation may, at the 
                discretion of the Comptroller of the Currency, 
                be appointed receiver and the Corporation may 
                accept any such appointment.
          (7) Judicial review.--If the Corporation is appointed 
        (including the appointment of the Corporation as 
        receiver by the Board of Directors) as conservator or 
        receiver of a depository institution under paragraph 
        (4), (9), or (10), the depository institution may, not 
        later than 30 days thereafter, bring an action in the 
        United States district court for the judicial district 
        in which the home office of such depository institution 
        is located, or in the United States District Court for 
        the District of Columbia, for an order requiring the 
        Corporation to be removed as the conservator or 
        receiver (regardless of how such appointment was made), 
        and the court shall, upon the merits, dismiss such 
        action or direct the Corporation to be removed as the 
        conservator or receiver.
          (8) Replacement of conservator of state depository 
        institution.--
                  (A) In general.--In the case of any insured 
                State depository institution for which the 
                Corporation appointed itself as conservator 
                pursuant to paragraph (4), the Corporation may, 
                without any requirement of notice, hearing, or 
                other action, replace itself as conservator 
                with itself as receiver of such institution.
                  (B) Replacement treated as removal of 
                incumbent.--The replacement of a conservator 
                with a receiver under subparagraph (A) shall be 
                treated as the removal of the Corporation as 
                conservator.
                  (C) Right of review of original appointment 
                not affected.--The replacement of a conservator 
                with a receiver under subparagraph (A) shall 
                not affect any right of the insured State 
                depository institution to obtain review, 
                pursuant to paragraph (7), of the original 
                appointment of the conservator.
          (9) Appropriate federal banking agency may appoint 
        corporation as conservator or receiver for insured 
        state depository institution to carry out section 38.--
                  (A) In general.--The appropriate Federal 
                banking agency may appoint the Corporation as 
                sole receiver (or, subject to paragraph (11), 
                sole conservator) of any insured State 
                depository institution, after consultation with 
                the appropriate State supervisor, if the 
                appropriate Federal banking agency determines 
                that--
                          (i) 1 or more of the grounds 
                        specified in subparagraphs (K) and (L) 
                        of paragraph (5) exist with respect to 
                        that institution; and
                          (ii) the appointment is necessary to 
                        carry out the purpose of section 38.
                  (B) Nondelegation.--The appropriate Federal 
                banking agency shall not delegate any action 
                under subparagraph (A).
          (10) Corporation may appoint itself as conservator or 
        receiver for insured depository institution to prevent 
        loss to deposit insurance fund.--The Board of Directors 
        may appoint the Corporation as sole conservator or 
        receiver of an insured depository institution, after 
        consultation with the appropriate Federal banking 
        agency and the appropriate State supervisor (if any), 
        if the Board of Directors determines that--
                  (A) 1 or more of the grounds specified in any 
                subparagraph of paragraph (5) exist with 
                respect to the institution; and
                  (B) the appointment is necessary to reduce--
                          (i) the risk that the Deposit 
                        Insurance Fund would incur a loss with 
                        respect to the insured depository 
                        institution, or
                          (ii) any loss that the Deposit 
                        Insurance Fund is expected to incur 
                        with respect to that institution.
          (11) Appropriate federal banking agency shall not 
        appoint conservator under certain provisions without 
        giving corporation opportunity to appoint receiver.--
        The appropriate Federal banking agency shall not 
        appoint a conservator for an insured depository 
        institution under subparagraph (K) or (L) of paragraph 
        (5) without the Corporation's consent unless the agency 
        has given the Corporation 48 hours notice of the 
        agency's intention to appoint the conservator and the 
        grounds for the appointment.
          (12) Directors not liable for acquiescing in 
        appointment of conservator or receiver.--The members of 
        the board of directors of an insured depository 
        institution shall not be liable to the institution's 
        shareholders or creditors for acquiescing in or 
        consenting in good faith to--
                  (A) the appointment of the Corporation as 
                conservator or receiver for that institution; 
                or
                  (B) an acquisition or combination under 
                section 38(f)(2)(A)(iii).
          (13) Additional powers.--In any case in which the 
        Corporation is appointed conservator or receiver under 
        paragraph (4), (6), (9), or (10) for any insured State 
        depository institution--
                  (A) this section shall apply to the 
                Corporation as conservator or receiver in the 
                same manner and to the same extent as if that 
                institution were a Federal depository 
                institution for which the Corporation had been 
                appointed conservator or receiver; and
                  (B) the Corporation as receiver of the 
                institution may--
                          (i) liquidate the institution in an 
                        orderly manner; and
                          (ii) make any other disposition of 
                        any matter concerning the institution, 
                        as the Corporation determines is in the 
                        best interests of the institution, the 
                        depositors of the institution, and the 
                        Corporation.
  (d) Powers and Duties of Corporation as Conservator or 
Receiver.--
          (1) Rulemaking authority of corporation.--The 
        Corporation may prescribe such regulations as the 
        Corporation determines to be appropriate regarding the 
        conduct of conservatorships or receiverships.
          (2) General powers.--
                  (A) Successor to institution.--The 
                Corporation shall, as conservator or receiver, 
                and by operation of law, succeed to--
                          (i) all rights, titles, powers, and 
                        privileges of the insured depository 
                        institution, and of any stockholder, 
                        member, accountholder, depositor, 
                        officer, or director of such 
                        institution with respect to the 
                        institution and the assets of the 
                        institution; and
                          (ii) title to the books, records, and 
                        assets of any previous conservator or 
                        other legal custodian of such 
                        institution.
                  (B) Operate the institution.--The Corporation 
                may (subject to the provisions of section 40), 
                as conservator or receiver--
                          (i) take over the assets of and 
                        operate the insured depository 
                        institution with all the powers of the 
                        members or shareholders, the directors, 
                        and the officers of the institution and 
                        conduct all business of the 
                        institution;
                          (ii) collect all obligations and 
                        money due the institution;
                          (iii) perform all functions of the 
                        institution in the name of the 
                        institution which are consistent with 
                        the appointment as conservator or 
                        receiver; and
                          (iv) preserve and conserve the assets 
                        and property of such institution.
                  (C) Functions of institution's officers, 
                directors, and shareholders.--The Corporation 
                may, by regulation or order, provide for the 
                exercise of any function by any member or 
                stockholder, director, or officer of any 
                insured depository institution for which the 
                Corporation has been appointed conservator or 
                receiver.
                  (D) Powers as conservator.--The Corporation 
                may, as conservator, take such action as may 
                be--
                          (i) necessary to put the insured 
                        depository institution in a sound and 
                        solvent condition; and
                          (ii) appropriate to carry on the 
                        business of the institution and 
                        preserve and conserve the assets and 
                        property of the institution.
                  (E) Additional powers as receiver.--The 
                Corporation may (subject to the provisions of 
                section 40), as receiver, place the insured 
                depository institution in liquidation and 
                proceed to realize upon the assets of the 
                institution, having due regard to the 
                conditions of credit in the locality.
                  (F) Organization of new institutions.--The 
                Corporation may, as receiver, with respect to 
                any insured depository institution, organize a 
                new depository institution under subsection (m) 
                or a bridge depository institution under 
                subsection (n).
                  (G) Merger; Transfer of assets and 
                liabilities.--
                          (i) In general.--The Corporation may, 
                        as conservator or receiver--
                                  (I) merge the insured 
                                depository institution with 
                                another insured depository 
                                institution; or
                                  (II) subject to clause (ii), 
                                transfer any asset or liability 
                                of the institution in default 
                                (including assets and 
                                liabilities associated with any 
                                trust business) without any 
                                approval, assignment, or 
                                consent with respect to such 
                                transfer.
                          (ii) Approval by appropriate federal 
                        banking agency.--No transfer described 
                        in clause (i)(II) may be made to 
                        another depository institution (other 
                        than a new depository institution or a 
                        bridge depository institution 
                        established pursuant to subsection (m) 
                        or (n)) without the approval of the 
                        appropriate Federal banking agency for 
                        such institution.
                  (H) Payment of valid obligations.--The 
                Corporation, as conservator or receiver, shall 
                pay all valid obligations of the insured 
                depository institution in accordance with the 
                prescriptions and limitations of this Act.
                  (I) Subpoena authority.--
                          (i) In general.--The Corporation may, 
                        as conservator, receiver, or exclusive 
                        manager and for purposes of carrying 
                        out any power, authority, or duty with 
                        respect to an insured depository 
                        institution (including determining any 
                        claim against the institution and 
                        determining and realizing upon any 
                        asset of any person in the course of 
                        collecting money due the institution), 
                        exercise any power established under 
                        section 8(n), and the provisions of 
                        such section shall apply with respect 
                        to the exercise of any such power under 
                        this subparagraph in the same manner as 
                        such provisions apply under such 
                        section.
                          (ii) Authority of board of 
                        directors.--A subpoena or subpoena 
                        duces tecum may be issued under clause 
                        (i) only by, or with the written 
                        approval of, the Board of Directors or 
                        their designees (or, in the case of a 
                        subpoena or subpoena duces tecum issued 
                        by the Resolution Trust Corporation 
                        under this subparagraph and section 
                        21A(b)(4), only by, or with the written 
                        approval of, the Board of Directors of 
                        such Corporation or their designees).
                          (iii) Rule of construction.--This 
                        subsection shall not be construed as 
                        limiting any rights that the 
                        Corporation, in any capacity, might 
                        otherwise have under section 10(c) of 
                        this Act.
                  (J) Incidental powers.--The Corporation may, 
                as conservator or receiver--
                          (i) exercise all powers and 
                        authorities specifically granted to 
                        conservators or receivers, 
                        respectively, under this Act and such 
                        incidental powers as shall be necessary 
                        to carry out such powers; and
                          (ii) take any action authorized by 
                        this Act,
                which the Corporation determines is in the best 
                interests of the depository institution, its 
                depositors, or the Corporation.
                  (K) Utilization of private sector.--In 
                carrying out its responsibilities in the 
                management and disposition of assets from 
                insured depository institutions, as 
                conservator, receiver, or in its corporate 
                capacity, the Corporation shall utilize the 
                services of private persons, including real 
                estate and loan portfolio asset management, 
                property management, auction marketing, legal, 
                and brokerage services, only if such services 
                are available in the private sector and the 
                Corporation determines utilization of such 
                services is the most practicable, efficient, 
                and cost effective.
          (3) Authority of receiver to determine claims.--
                  (A) In general.--The Corporation may, as 
                receiver, determine claims in accordance with 
                the requirements of this subsection and 
                regulations prescribed under paragraph (4).
                  (B) Notice requirements.--The receiver, in 
                any case involving the liquidation or winding 
                up of the affairs of a closed depository 
                institution, shall--
                          (i) promptly publish a notice to the 
                        depository institution's creditors to 
                        present their claims, together with 
                        proof, to the receiver by a date 
                        specified in the notice which shall be 
                        not less than 90 days after the 
                        publication of such notice; and
                          (ii) republish such notice 
                        approximately 1 month and 2 months, 
                        respectively, after the publication 
                        under clause (i).
                  (C) Mailing required.--The receiver shall 
                mail a notice similar to the notice published 
                under subparagraph (B)(i) at the time of such 
                publication to any creditor shown on the 
                institution's books--
                          (i) at the creditor's last address 
                        appearing in such books; or
                          (ii) upon discovery of the name and 
                        address of a claimant not appearing on 
                        the institution's books within 30 days 
                        after the discovery of such name and 
                        address.
          (4) Rulemaking authority relating to determination of 
        claims.--
                  (A) In general.--The Corporation may 
                prescribe regulations regarding the allowance 
                or disallowance of claims by the receiver and 
                providing for administrative determination of 
                claims and review of such determination.
                  (B) Final settlement payment procedure.--
                          (i) In general.--In the handling of 
                        receiverships of insured depository 
                        institutions, to maintain essential 
                        liquidity and to prevent financial 
                        disruption, the Corporation may, after 
                        the declaration of an institution's 
                        insolvency, settle all uninsured and 
                        unsecured claims on the receivership 
                        with a final settlement payment which 
                        shall constitute full payment and 
                        disposition of the Corporation's 
                        obligations to such claimants.
                          (ii) Final settlement payment.--For 
                        purposes of clause (i), a final 
                        settlement payment shall be payment of 
                        an amount equal to the product of the 
                        final settlement payment rate and the 
                        amount of the uninsured and unsecured 
                        claim on the receivership; and
                          (iii) Final settlement payment 
                        rate.--For purposes of clause (ii), the 
                        final settlement payment rate shall be 
                        a percentage rate reflecting an average 
                        of the Corporation's receivership 
                        recovery experience, determined by the 
                        Corporation in such a way that over 
                        such time period as the Corporation may 
                        deem appropriate, the Corporation in 
                        total will receive no more or less than 
                        it would have received in total as a 
                        general creditor standing in the place 
                        of insured depositors in each specific 
                        receivership.
                          (iv) Corporation authority.--The 
                        Corporation may undertake such 
                        supervisory actions and promulgate such 
                        regulations as may be necessary to 
                        assure that the requirements of this 
                        section can be implemented with respect 
                        to each insured depository institution 
                        in the event of its insolvency.
          (5) Procedures for determination of claims.--
                  (A) Determination period.--
                          (i) In general.--Before the end of 
                        the 180-day period beginning on the 
                        date any claim against a depository 
                        institution is filed with the 
                        Corporation as receiver, the 
                        Corporation shall determine whether to 
                        allow or disallow the claim and shall 
                        notify the claimant of any 
                        determination with respect to such 
                        claim.
                          (ii) Extension of time.--The period 
                        described in clause (i) may be extended 
                        by a written agreement between the 
                        claimant and the Corporation.
                          (iii) Mailing of notice sufficient.--
                        The requirements of clause (i) shall be 
                        deemed to be satisfied if the notice of 
                        any determination with respect to any 
                        claim is mailed to the last address of 
                        the claimant which appears--
                                  (I) on the depository 
                                institution's books;
                                  (II) in the claim filed by 
                                the claimant; or
                                  (III) in documents submitted 
                                in proof of the claim.
                          (iv) Contents of notice of 
                        disallowance.--If any claim filed under 
                        clause (i) is disallowed, the notice to 
                        the claimant shall contain--
                                  (I) a statement of each 
                                reason for the disallowance; 
                                and
                                  (II) the procedures available 
                                for obtaining agency review of 
                                the determination to disallow 
                                the claim or judicial 
                                determination of the claim.
                  (B) Allowance of proven claims.--The receiver 
                shall allow any claim received on or before the 
                date specified in the notice published under 
                paragraph (3)(B)(i) by the receiver from any 
                claimant which is proved to the satisfaction of 
                the receiver.
                  (C) Disallowance of claims filed after end of 
                filing period.--
                          (i) In general.--Except as provided 
                        in clause (ii), claims filed after the 
                        date specified in the notice published 
                        under paragraph (3)(B)(i) shall be 
                        disallowed and such disallowance shall 
                        be final.
                          (ii) Certain exceptions.--Clause (i) 
                        shall not apply with respect to any 
                        claim filed by any claimant after the 
                        date specified in the notice published 
                        under paragraph (3)(B)(i) and such 
                        claim may be considered by the receiver 
                        if--
                                  (I) the claimant did not 
                                receive notice of the 
                                appointment of the receiver in 
                                time to file such claim before 
                                such date; and
                                  (II) such claim is filed in 
                                time to permit payment of such 
                                claim.
                  (D) Authority to disallow claims.--
                          (i) In general.--The receiver may 
                        disallow any portion of any claim by a 
                        creditor or claim of security, 
                        preference, or priority which is not 
                        proved to the satisfaction of the 
                        receiver.
                          (ii) Payments to less than fully 
                        secured creditors.--In the case of a 
                        claim of a creditor against an insured 
                        depository institution which is secured 
                        by any property or other asset of such 
                        institution, any receiver appointed for 
                        any insured depository institution--
                                  (I) may treat the portion of 
                                such claim which exceeds an 
                                amount equal to the fair market 
                                value of such property or other 
                                asset as an unsecured claim 
                                against the institution; and
                                  (II) may not make any payment 
                                with respect to such unsecured 
                                portion of the claim other than 
                                in connection with the 
                                disposition of all claims of 
                                unsecured creditors of the 
                                institution.
                          (iii) Exceptions.--No provision of 
                        this paragraph shall apply with respect 
                        to--
                                  (I) any extension of credit 
                                from any Federal home loan bank 
                                or Federal Reserve bank to any 
                                insured depository institution; 
                                or
                                  (II) any security interest in 
                                the assets of the institution 
                                securing any such extension of 
                                credit.
                  (E) No judicial review of determination 
                pursuant to subparagraph (d).--No court may 
                review the Corporation's determination pursuant 
                to subparagraph (D) to disallow a claim.
                  (F) Legal effect of filing.--
                          (i) Statute of limitation tolled.--
                        For purposes of any applicable statute 
                        of limitations, the filing of a claim 
                        with the receiver shall constitute a 
                        commencement of an action.
                          (ii) No prejudice to other actions.--
                        Subject to paragraph (12), the filing 
                        of a claim with the receiver shall not 
                        prejudice any right of the claimant to 
                        continue any action which was filed 
                        before the appointment of the receiver.
          (6) Provision for agency review or judicial 
        determination of claims.--
                  (A) In general.--Before the end of the 60-day 
                period beginning on the earlier of--
                          (i) the end of the period described 
                        in paragraph (5)(A)(i) with respect to 
                        any claim against a depository 
                        institution for which the Corporation 
                        is receiver; or
                          (ii) the date of any notice of 
                        disallowance of such claim pursuant to 
                        paragraph (5)(A)(i),
                the claimant may request administrative review 
                of the claim in accordance with subparagraph 
                (A) or (B) of paragraph (7) or file suit on 
                such claim (or continue an action commenced 
                before the appointment of the receiver) in the 
                district or territorial court of the United 
                States for the district within which the 
                depository institution's principal place of 
                business is located or the United States 
                District Court for the District of Columbia 
                (and such court shall have jurisdiction to hear 
                such claim).
                  (B) Statute of limitations.--If any claimant 
                fails to--
                          (i) request administrative review of 
                        any claim in accordance with 
                        subparagraph (A) or (B) of paragraph 
                        (7); or
                          (ii) file suit on such claim (or 
                        continue an action commenced before the 
                        appointment of the receiver),
                before the end of the 60-day period described 
                in subparagraph (A), the claim shall be deemed 
                to be disallowed (other than any portion of 
                such claim which was allowed by the receiver) 
                as of the end of such period, such disallowance 
                shall be final, and the claimant shall have no 
                further rights or remedies with respect to such 
                claim.
          (7) Review of claims.--
                  (A) Administrative hearing.--If any claimant 
                requests review under this subparagraph in lieu 
                of filing or continuing any action under 
                paragraph (6) and the Corporation agrees to 
                such request, the Corporation shall consider 
                the claim after opportunity for a hearing on 
                the record. The final determination of the 
                Corporation with respect to such claim shall be 
                subject to judicial review under chapter 7 of 
                title 5, United States Code.
          (B) Other review procedures.--
                  (i) In general.--The Corporation shall also 
                establish such alternative dispute resolution 
                processes as may be appropriate for the 
                resolution of claims filed under paragraph 
                (5)(A)(i).
                  (ii) Criteria.--In establishing alternative 
                dispute resolution processes, the Corporation 
                shall strive for procedures which are 
                expeditious, fair, independent, and low cost.
                  (iii) Voluntary binding or nonbinding 
                procedures.--The Corporation may establish both 
                binding and nonbinding processes, which may be 
                conducted by any government or private party, 
                but all parties, including the claimant and the 
                Corporation, must agree to the use of the 
                process in a particular case.
                  (iv) Consideration of incentives.--The 
                Corporation shall seek to develop incentives 
                for claimants to participate in the alternative 
                dispute resolution process.
          (8) Expedited determination of claims.--
                  (A) Establishment required.--The Corporation 
                shall establish a procedure for expedited 
                relief outside of the routine claims process 
                established under paragraph (5) for claimants 
                who--
                          (i) allege the existence of legally 
                        valid and enforceable or perfected 
                        security interests in assets of any 
                        depository institution for which the 
                        Corporation has been appointed 
                        receiver; and
                          (ii) allege that irreparable injury 
                        will occur if the routine claims 
                        procedure is followed.
                  (B) Determination period.--Before the end of 
                the 90-day period beginning on the date any 
                claim is filed in accordance with the 
                procedures established pursuant to subparagraph 
                (A), the Corporation shall--
                          (i) determine--
                                  (I) whether to allow or 
                                disallow such claim; or
                                  (II) whether such claim 
                                should be determined pursuant 
                                to the procedures established 
                                pursuant to paragraph (5); and
                          (ii) notify the claimant of the 
                        determination, and if the claim is 
                        disallowed, provide a statement of each 
                        reason for the disallowance and the 
                        procedure for obtaining agency review 
                        or judicial determination.
                  (C) Period for filing or renewing suit.--Any 
                claimant who files a request for expedited 
                relief shall be permitted to file a suit, or to 
                continue a suit filed before the appointment of 
                the receiver, seeking a determination of the 
                claimant's rights with respect to such security 
                interest after the earlier of--
                          (i) the end of the 90-day period 
                        beginning on the date of the filing of 
                        a request for expedited relief; or
                          (ii) the date the Corporation denies 
                        the claim.
                  (D) Statute of limitations.--If an action 
                described in subparagraph (C) is not filed, or 
                the motion to renew a previously filed suit is 
                not made, before the end of the 30-day period 
                beginning on the date on which such action or 
                motion may be filed in accordance with 
                subparagraph (B), the claim shall be deemed to 
                be disallowed as of the end of such period 
                (other than any portion of such claim which was 
                allowed by the receiver), such disallowance 
                shall be final, and the claimant shall have no 
                further rights or remedies with respect to such 
                claim.
                  (E) Legal effect of filing.--
                          (i) Statute of limitation tolled.--
                        For purposes of any applicable statute 
                        of limitations, the filing of a claim 
                        with the receiver shall constitute a 
                        commencement of an action.
                          (ii) No prejudice to other actions.--
                        Subject to paragraph (12), the filing 
                        of a claim with the receiver shall not 
                        prejudice any right of the claimant to 
                        continue any action which was filed 
                        before the appointment of the receiver.
          (9) Agreement as basis of claim.--
                  (A) Requirements.--Except as provided in 
                subparagraph (B), any agreement which does not 
                meet the requirements set forth in section 
                13(e) shall not form the basis of, or 
                substantially comprise, a claim against the 
                receiver or the Corporation.
                  (B) Exception to contemporaneous execution 
                requirement.--Notwithstanding section 13(e)(2), 
                any agreement relating to an extension of 
                credit between a Federal home loan bank or 
                Federal Reserve bank and any insured depository 
                institution which was executed before the 
                extension of credit by such bank to such 
                institution shall be treated as having been 
                executed contemporaneously with such extension 
                of credit for purposes of subparagraph (A).
          (10) Payment of claims.--
                  (A) In general.--The receiver may, in the 
                receiver's discretion and to the extent funds 
                are available, pay creditor claims which are 
                allowed by the receiver, approved by the 
                Corporation pursuant to a final determination 
                pursuant to paragraph (7) or (8), or determined 
                by the final judgment of any court of competent 
                jurisdiction in such manner and amounts as are 
                authorized under this Act.
                  (B) Payment of dividends on claims.--The 
                receiver may, in the receiver's sole 
                discretion, pay dividends on proved claims at 
                any time, and no liability shall attach to the 
                Corporation (in such Corporation's corporate 
                capacity or as receiver), by reason of any such 
                payment, for failure to pay dividends to a 
                claimant whose claim is not proved at the time 
                of any such payment.
                  (C) Rulemaking authority of corporation.--The 
                Corporation may prescribe such rules, including 
                definitions of terms, as it deems appropriate 
                to establish a single uniform interest rate for 
                or to make payments of post insolvency interest 
                to creditors holding proven claims against the 
                receivership estates of insured Federal or 
                State depository institutions following 
                satisfaction by the receiver of the principal 
                amount of all creditor claims.
          (11) Depositor preference.--
                  (A) In general.--Subject to section 
                5(e)(2)(C), amounts realized from the 
                liquidation or other resolution of any insured 
                depository institution by any receiver 
                appointed for such institution shall be 
                distributed to pay claims (other than secured 
                claims to the extent of any such security) in 
                the following order of priority:
                          (i) Administrative expenses of the 
                        receiver.
                          (ii) Any deposit liability of the 
                        institution.
                          (iii) Any other general or senior 
                        liability of the institution (which is 
                        not a liability described in clause 
                        (iv) or (v)).
                          (iv) Any obligation subordinated to 
                        depositors or general creditors (which 
                        is not an obligation described in 
                        clause (v)).
                          (v) Any obligation to shareholders or 
                        members arising as a result of their 
                        status as shareholders or members 
                        (including any depository institution 
                        holding company or any shareholder or 
                        creditor of such company).
                  (B) Effect on state law.--
                          (i) In general.--The provisions of 
                        subparagraph (A) shall not supersede 
                        the law of any State except to the 
                        extent such law is inconsistent with 
                        the provisions of such subparagraph, 
                        and then only to the extent of the 
                        inconsistency.
                          (ii) Procedure for determination of 
                        inconsistency.--Upon the Corporation's 
                        own motion or upon the request of any 
                        person with a claim described in 
                        subparagraph (A) or any State which is 
                        submitted to the Corporation in 
                        accordance with procedures which the 
                        Corporation shall prescribe, the 
                        Corporation shall determine whether any 
                        provision of the law of any State is 
                        inconsistent with any provision of 
                        subparagraph (A) and the extent of any 
                        such inconsistency.
                          (iii) Judicial review.--The final 
                        determination of the Corporation under 
                        clause (ii) shall be subject to 
                        judicial review under chapter 7 of 
                        title 5, United States Code.
                  (C) Accounting report.--Any distribution by 
                the Corporation in connection with any claim 
                described in subparagraph (A)(v) shall be 
                accompanied by the accounting report required 
                under paragraph (15)(B).
          (12) Suspension of legal actions.--
                  (A) In general.--After the appointment of a 
                conservator or receiver for an insured 
                depository institution, the conservator or 
                receiver may request a stay for a period not to 
                exceed--
                          (i) 45 days, in the case of any 
                        conservator; and
                          (ii) 90 days, in the case of any 
                        receiver,
                in any judicial action or proceeding to which 
                such institution is or becomes a party.
                  (B) Grant of stay by all courts required.--
                Upon receipt of a request by any conservator or 
                receiver pursuant to subparagraph (A) for a 
                stay of any judicial action or proceeding in 
                any court with jurisdiction of such action or 
                proceeding, the court shall grant such stay as 
                to all parties.
          (13) Additional rights and duties.--
                  (A) Prior final adjudication.--The 
                Corporation shall abide by any final 
                unappealable judgment of any court of competent 
                jurisdiction which was rendered before the 
                appointment of the Corporation as conservator 
                or receiver.
                  (B) Rights and remedies of conservator or 
                receiver.--In the event of any appealable 
                judgment, the Corporation as conservator or 
                receiver shall--
                          (i) have all the rights and remedies 
                        available to the insured depository 
                        institution (before the appointment of 
                        such conservator or receiver) and the 
                        Corporation in its corporate capacity, 
                        including removal to Federal court and 
                        all appellate rights; and
                          (ii) not be required to post any bond 
                        in order to pursue such remedies.
                  (C) No attachment or execution.--No 
                attachment or execution may issue by any court 
                upon assets in the possession of the receiver.
                  (D) Limitation on judicial review.--Except as 
                otherwise provided in this subsection, no court 
                shall have jurisdiction over--
                          (i) any claim or action for payment 
                        from, or any action seeking a 
                        determination of rights with respect 
                        to, the assets of any depository 
                        institution for which the Corporation 
                        has been appointed receiver, including 
                        assets which the Corporation may 
                        acquire from itself as such receiver; 
                        or
                          (ii) any claim relating to any act or 
                        omission of such institution or the 
                        Corporation as receiver.
                  (E) Disposition of assets.--In exercising any 
                right, power, privilege, or authority as 
                conservator or receiver in connection with any 
                sale or disposition of assets of any insured 
                depository institution for which the 
                Corporation has been appointed conservator or 
                receiver, including any sale or disposition of 
                assets acquired by the Corporation under 
                section 13(d)(1), the Corporation shall conduct 
                its operations in a manner which--
                          (i) maximizes the net present value 
                        return from the sale or disposition of 
                        such assets;
                          (ii) minimizes the amount of any loss 
                        realized in the resolution of cases;
                          (iii) ensures adequate competition 
                        and fair and consistent treatment of 
                        offerors;
                          (iv) prohibits discrimination on the 
                        basis of race, sex, or ethnic groups in 
                        the solicitation and consideration of 
                        offers; and
                          (v) maximizes the preservation of the 
                        availability and affordability of 
                        residential real property for low- and 
                        moderate-income individuals.
          (14) Statute of limitations for actions brought by 
        conservator or receiver.--
                  (A) In general.--Notwithstanding any 
                provision of any contract, the applicable 
                statute of limitations with regard to any 
                action brought by the Corporation as 
                conservator or receiver shall be--
                          (i) in the case of any contract 
                        claim, the longer of--
                                  (I) the 6-year period 
                                beginning on the date the claim 
                                accrues; or
                                  (II) the period applicable 
                                under State law; and
                          (ii) in the case of any tort claim 
                        (other than a claim which is subject to 
                        section 21A(b)(14) of the Federal Home 
                        Loan Bank Act), the longer of--
                                  (I) the 3-year period 
                                beginning on the date the claim 
                                accrues; or
                                  (II) the period applicable 
                                under State law.
                  (B) Determination of the date on which a 
                claim accrues.--For purposes of subparagraph 
                (A), the date on which the statute of 
                limitations begins to run on any claim 
                described in such subparagraph shall be the 
                later of--
                          (i) the date of the appointment of 
                        the Corporation as conservator or 
                        receiver; or
                          (ii) the date on which the cause of 
                        action accrues.
                  (C) Revival of expired state causes of 
                action.--
                          (i) In general.--In the case of any 
                        tort claim described in clause (ii) for 
                        which the statute of limitation 
                        applicable under State law with respect 
                        to such claim has expired not more than 
                        5 years before the appointment of the 
                        Corporation as conservator or receiver, 
                        the Corporation may bring an action as 
                        conservator or receiver on such claim 
                        without regard to the expiration of the 
                        statute of limitation applicable under 
                        State law.
                          (ii) Claims described.--A tort claim 
                        referred to in clause (i) is a claim 
                        arising from fraud, intentional 
                        misconduct resulting in unjust 
                        enrichment, or intentional misconduct 
                        resulting in substantial loss to the 
                        institution.
          (15) Accounting and recordkeeping requirements.--
                  (A) In general.--The Corporation as 
                conservator or receiver shall, consistent with 
                the accounting and reporting practices and 
                procedures established by the Corporation, 
                maintain a full accounting of each 
                conservatorship and receivership or other 
                disposition of institutions in default.
                  (B) Annual accounting or report.--With 
                respect to each conservatorship or receivership 
                to which the Corporation was appointed, the 
                Corporation shall make an annual accounting or 
                report, as appropriate, available to the 
                Secretary of the Treasury, the Comptroller 
                General of the United States, and the authority 
                which appointed the Corporation as conservator 
                or receiver.
                  (C) Availability of reports.--Any report 
                prepared pursuant to subparagraph (B) shall be 
                made available by the Corporation upon request 
                to any shareholder of the depository 
                institution for which the Corporation was 
                appointed conservator or receiver or any other 
                member of the public.
                  (D) Recordkeeping requirement.--
                          (i) In general.--Except as provided 
                        in clause (ii), after the end of the 6-
                        year period beginning on the date the 
                        Corporation is appointed as receiver of 
                        an insured depository institution, the 
                        Corporation may destroy any records of 
                        such institution which the Corporation, 
                        in the Corporation's discretion, 
                        determines to be unnecessary unless 
                        directed not to do so by a court of 
                        competent jurisdiction or governmental 
                        agency, or prohibited by law.
                          (ii) Old records.--Notwithstanding 
                        clause (i), the Corporation may destroy 
                        records of an insured depository 
                        institution which are at least 10 years 
                        old as of the date on which the 
                        Corporation is appointed as the 
                        receiver of such depository institution 
                        in accordance with clause (i) at any 
                        time after such appointment is final, 
                        without regard to the 6-year period of 
                        limitation contained in clause (i).
          (16) Contracts with state housing finance 
        authorities.--
                  (A) In general.--The Corporation may enter 
                into contracts with any State housing finance 
                authority for the sale of mortgage-related 
                assets (as such terms are defined in section 
                1301 of the Financial Institutions Reform, 
                Recovery, and Enforcement Act of 1989) of any 
                depository institution in default (including 
                assets and liabilities associated with any 
                trust business), such contracts to be effective 
                in accordance with their terms without any 
                further approval, assignment, or consent with 
                respect thereto.
                  (B) Factors to consider.--In evaluating the 
                disposition of mortgage related assets to any 
                State housing finance authority the Corporation 
                shall consider--
                          (i) the State housing finance 
                        authority's ability to acquire and 
                        service current, delinquent, and 
                        defaulted mortgage related assets;
                          (ii) the State housing finance 
                        authority's ability to further national 
                        housing policies;
                          (iii) the State housing finance 
                        authority's sensitivity to the impact 
                        of the sale of mortgage related assets 
                        upon the State and local communities;
                          (iv) the costs to the Federal 
                        Government associated with alternative 
                        ownership or disposition of the 
                        mortgage related assets;
                          (v) the minimization of future 
                        guaranties which may be required of the 
                        Federal Government;
                          (vi) the maximization of mortgage 
                        related asset values; and
                          (vii) the utilization of institutions 
                        currently established in mortgage 
                        related asset market activities.
          (17) Fraudulent transfers.--
                  (A) In general.--The Corporation, as 
                conservator or receiver for any insured 
                depository institution, and any conservator 
                appointed by the Comptroller of the Currency 
                may avoid a transfer of any interest of an 
                institution-affiliated party, or any person who 
                the Corporation or conservator determines is a 
                debtor of the institution, in property, or any 
                obligation incurred by such party or person, 
                that was made within 5 years of the date on 
                which the Corporation or conservator was 
                appointed conservator or receiver if such party 
                or person voluntarily or involuntarily made 
                such transfer or incurred such liability with 
                the intent to hinder, delay, or defraud the 
                insured depository institution, the Corporation 
                or other conservator, or any other appropriate 
                Federal banking agency.
                  (B) Right of recovery.--To the extent a 
                transfer is avoided under subparagraph (A), the 
                Corporation or any conservator described in 
                such subparagraph may recover, for the benefit 
                of the insured depository institution, the 
                property transferred, or, if a court so orders, 
                the value of such property (at the time of such 
                transfer) from--
                          (i) the initial transferee of such 
                        transfer or the institution-affiliated 
                        party or person for whose benefit such 
                        transfer was made; or
                          (ii) any immediate or mediate 
                        transferee of any such initial 
                        transferee.
                  (C) Rights of transferee or obligee.--The 
                Corporation or any conservator described in 
                subparagraph (A) may not recover under 
                subparagraph (B) from--
                          (i) any transferee that takes for 
                        value, including satisfaction or 
                        securing of a present or antecedent 
                        debt, in good faith; or
                          (ii) any immediate or mediate good 
                        faith transferee of such transferee.
                  (D) Rights under this paragraph.--The rights 
                under this paragraph of the Corporation and any 
                conservator described in subparagraph (A) shall 
                be superior to any rights of a trustee or any 
                other party (other than any party which is a 
                Federal agency) under title 11, United States 
                Code.
          (18) Attachment of assets and other injunctive 
        relief.--Subject to paragraph (19), any court of 
        competent jurisdiction may, at the request of--
                  (A) the Corporation (in the Corporation's 
                capacity as conservator or receiver for any 
                insured depository institution or in the 
                Corporation's corporate capacity with respect 
                to any asset acquired or liability assumed by 
                the Corporation under section 11, 12, or 13); 
                or
                  (B) any conservator appointed by the 
                Comptroller of the Currency,
        issue an order in accordance with Rule 65 of the 
        Federal Rules of Civil Procedure, including an order 
        placing the assets of any person designated by the 
        Corporation or such conservator under the control of 
        the court and appointing a trustee to hold such assets.
          (19) Standards.--
                  (A) Showing.--Rule 65 of the Federal Rules of 
                Civil Procedure shall apply with respect to any 
                proceeding under paragraph (18) without regard 
                to the requirement of such rule that the 
                applicant show that the injury, loss, or damage 
                is irreparable and immediate.
                  (B) State proceeding.--If, in the case of any 
                proceeding in a State court, the court 
                determines that rules of civil procedure 
                available under the laws of such State provide 
                substantially similar protections to such 
                party's right to due process as Rule 65 (as 
                modified with respect to such proceeding by 
                subparagraph (A)), the relief sought by the 
                Corporation or a conservator pursuant to 
                paragraph (18) may be requested under the laws 
                of such State.
          (20) Treatment of claims arising from breach of 
        contracts executed by the receiver or conservator.--
        Notwithstanding any other provision of this subsection, 
        any final and unappealable judgment for monetary 
        damages entered against a receiver or conservator for 
        an insured depository institution for the breach of an 
        agreement executed or approved by such receiver or 
        conservator after the date of its appointment shall be 
        paid as an administrative expense of the receiver or 
        conservator. Nothing in this paragraph shall be 
        construed to limit the power of a receiver or 
        conservator to exercise any rights under contract or 
        law, including to terminate, breach, cancel, or 
        otherwise discontinue such agreement.
  (e) Provisions Relating to Contracts Entered Into Before 
Appointment of Conservator or Receiver.--
          (1) Authority to repudiate contracts.--In addition to 
        any other rights a conservator or receiver may have, 
        the conservator or receiver for any insured depository 
        institution may disaffirm or repudiate any contract or 
        lease--
                  (A) to which such institution is a party;
                  (B) the performance of which the conservator 
                or receiver, in the conservator's or receiver's 
                discretion, determines to be burdensome; and
                  (C) the disaffirmance or repudiation of which 
                the conservator or receiver determines, in the 
                conservator's or receiver's discretion, will 
                promote the orderly administration of the 
                institution's affairs.
          (2) Timing of repudiation.--The conservator or 
        receiver appointed for any insured depository 
        institution in accordance with subsection (c) shall 
        determine whether or not to exercise the rights of 
        repudiation under this subsection within a reasonable 
        period following such appointment.
          (3) Claims for damages for repudiation.--
                  (A) In general.--Except as otherwise provided 
                in subparagraph (C) and paragraphs (4), (5), 
                and (6), the liability of the conservator or 
                receiver for the disaffirmance or repudiation 
                of any contract pursuant to paragraph (1) shall 
                be--
                          (i) limited to actual direct 
                        compensatory damages; and
                          (ii) determined as of--
                                  (I) the date of the 
                                appointment of the conservator 
                                or receiver; or
                                  (II) in the case of any 
                                contract or agreement referred 
                                to in paragraph (8), the date 
                                of the disaffirmance or 
                                repudiation of such contract or 
                                agreement.
                  (B) No liability for other damages.--For 
                purposes of subparagraph (A), the term ``actual 
                direct compensatory damages'' does not 
                include--
                          (i) punitive or exemplary damages;
                          (ii) damages for lost profits or 
                        opportunity; or
                          (iii) damages for pain and suffering.
                  (C) Measure of damages for repudiation of 
                financial contracts.--In the case of any 
                qualified financial contract or agreement to 
                which paragraph (8) applies, compensatory 
                damages shall be--
                          (i) deemed to include normal and 
                        reasonable costs of cover or other 
                        reasonable measures of damages utilized 
                        in the industries for such contract and 
                        agreement claims; and
                          (ii) paid in accordance with this 
                        subsection and subsection (i) except as 
                        otherwise specifically provided in this 
                        section.
          (4) Leases under which the institution is the 
        lessee.--
                  (A) In general.--If the conservator or 
                receiver disaffirms or repudiates a lease under 
                which the insured depository institution was 
                the lessee, the conservator or receiver shall 
                not be liable for any damages (other than 
                damages determined pursuant to subparagraph 
                (B)) for the disaffirmance or repudiation of 
                such lease.
                  (B) Payments of rent.--Notwithstanding 
                subparagraph (A), the lessor under a lease to 
                which such subparagraph applies shall--
                          (i) be entitled to the contractual 
                        rent accruing before the later of the 
                        date--
                                  (I) the notice of 
                                disaffirmance or repudiation is 
                                mailed; or
                                  (II) the disaffirmance or 
                                repudiation becomes effective,
                        unless the lessor is in default or 
                        breach of the terms of the lease;
                          (ii) have no claim for damages under 
                        any acceleration clause or other 
                        penalty provision in the lease; and
                          (iii) have a claim for any unpaid 
                        rent, subject to all appropriate 
                        offsets and defenses, due as of the 
                        date of the appointment which shall be 
                        paid in accordance with this subsection 
                        and subsection (i).
          (5) Leases under which the institution is the 
        lessor.--
                  (A) In general.--If the conservator or 
                receiver repudiates an unexpired written lease 
                of real property of the insured depository 
                institution under which the institution is the 
                lessor and the lessee is not, as of the date of 
                such repudiation, in default, the lessee under 
                such lease may either--
                          (i) treat the lease as terminated by 
                        such repudiation; or
                          (ii) remain in possession of the 
                        leasehold interest for the balance of 
                        the term of the lease unless the lessee 
                        defaults under the terms of the lease 
                        after the date of such repudiation.
                  (B) Provisions applicable to lessee remaining 
                in possession.--If any lessee under a lease 
                described in subparagraph (A) remains in 
                possession of a leasehold interest pursuant to 
                clause (ii) of such subparagraph--
                          (i) the lessee--
                                  (I) shall continue to pay the 
                                contractual rent pursuant to 
                                the terms of the lease after 
                                the date of the repudiation of 
                                such lease;
                                  (II) may offset against any 
                                rent payment which accrues 
                                after the date of the 
                                repudiation of the lease, any 
                                damages which accrue after such 
                                date due to the nonperformance 
                                of any obligation of the 
                                insured depository institution 
                                under the lease after such 
                                date; and
                          (ii) the conservator or receiver 
                        shall not be liable to the lessee for 
                        any damages arising after such date as 
                        a result of the repudiation other than 
                        the amount of any offset allowed under 
                        clause (i)(II).
          (6) Contracts for the sale of real property.--
                  (A) In general.--If the conservator or 
                receiver repudiates any contract (which meets 
                the requirements of each paragraph of section 
                13(e)) for the sale of real property and the 
                purchaser of such real property under such 
                contract is in possession and is not, as of the 
                date of such repudiation, in default, such 
                purchaser may either--
                          (i) treat the contract as terminated 
                        by such repudiation; or
                          (ii) remain in possession of such 
                        real property.
                  (B) Provisions applicable to purchaser 
                remaining in possession.--If any purchaser of 
                real property under any contract described in 
                subparagraph (A) remains in possession of such 
                property pursuant to clause (ii) of such 
                subparagraph--
                          (i) the purchaser--
                                  (I) shall continue to make 
                                all payments due under the 
                                contract after the date of the 
                                repudiation of the contract; 
                                and
                                  (II) may offset against any 
                                such payments any damages which 
                                accrue after such date due to 
                                the nonperformance (after such 
                                date) of any obligation of the 
                                depository institution under 
                                the contract; and
                          (ii) the conservator or receiver 
                        shall--
                                  (I) not be liable to the 
                                purchaser for any damages 
                                arising after such date as a 
                                result of the repudiation other 
                                than the amount of any offset 
                                allowed under clause (i)(II);
                                  (II) deliver title to the 
                                purchaser in accordance with 
                                the provisions of the contract; 
                                and
                                  (III) have no obligation 
                                under the contract other than 
                                the performance required under 
                                subclause (II).
                  (C) Assignment and sale allowed.--
                          (i) In general.--No provision of this 
                        paragraph shall be construed as 
                        limiting the right of the conservator 
                        or receiver to assign the contract 
                        described in subparagraph (A) and sell 
                        the property subject to the contract 
                        and the provisions of this paragraph.
                          (ii) No liability after assignment 
                        and sale.--If an assignment and sale 
                        described in clause (i) is consummated, 
                        the conservator or receiver shall have 
                        no further liability under the contract 
                        described in subparagraph (A) or with 
                        respect to the real property which was 
                        the subject of such contract.
          (7) Provisions applicable to service contracts.--
                  (A) Services performed before appointment.--
                In the case of any contract for services 
                between any person and any insured depository 
                institution for which the Corporation has been 
                appointed conservator or receiver, any claim of 
                such person for services performed before the 
                appointment of the conservator or the receiver 
                shall be--
                          (i) a claim to be paid in accordance 
                        with subsections (d) and (i); and
                          (ii) deemed to have arisen as of the 
                        date the conservator or receiver was 
                        appointed.
                  (B) Services performed after appointment and 
                prior to repudiation.--If, in the case of any 
                contract for services described in subparagraph 
                (A), the conservator or receiver accepts 
                performance by the other person before the 
                conservator or receiver makes any determination 
                to exercise the right of repudiation of such 
                contract under this section--
                          (i) the other party shall be paid 
                        under the terms of the contract for the 
                        services performed; and
                          (ii) the amount of such payment shall 
                        be treated as an administrative expense 
                        of the conservatorship or receivership.
                  (C) Acceptance of performance no bar to 
                subsequent repudiation.--The acceptance by any 
                conservator or receiver of services referred to 
                in subparagraph (B) in connection with a 
                contract described in such subparagraph shall 
                not affect the right of the conservator or 
                receiver to repudiate such contract under this 
                section at any time after such performance.
          (8) Certain qualified financial contracts.--
                  (A) Rights of parties to contracts.--Subject 
                to paragraphs (9) and (10) of this subsection 
                and notwithstanding any other provision of this 
                Act (other than subsection (d)(9) of this 
                section and section 13(e)), any other Federal 
                law, or the law of any State, no person shall 
                be stayed or prohibited from exercising--
                          (i) any right such person has to 
                        cause the termination, liquidation, or 
                        acceleration of any qualified financial 
                        contract with an insured depository 
                        institution which arises upon the 
                        appointment of the Corporation as 
                        receiver for such institution at any 
                        time after such appointment;
                          (ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);
                          (iii) any right to offset or net out 
                        any termination value, payment amount, 
                        or other transfer obligation arising 
                        under or in connection with 1 or more 
                        contracts and agreements described in 
                        clause (i), including any master 
                        agreement for such contracts or 
                        agreements.
                  (B) Applicability of other provisions.--
                Subsection (d)(12) shall apply in the case of 
                any judicial action or proceeding brought 
                against any receiver referred to in 
                subparagraph (A), or the insured depository 
                institution for which such receiver was 
                appointed, by any party to a contract or 
                agreement described in subparagraph (A)(i) with 
                such institution.
                  (C) Certain transfers not avoidable.--
                          (i) In general.--Notwithstanding 
                        paragraph (11), section 5242 of the 
                        Revised Statutes of the United States 
                        or any other Federal or State law 
                        relating to the avoidance of 
                        preferential or fraudulent transfers, 
                        the Corporation, whether acting as such 
                        or as conservator or receiver of an 
                        insured depository institution, may not 
                        avoid any transfer of money or other 
                        property in connection with any 
                        qualified financial contract with an 
                        insured depository institution.
                          (ii) Exception for certain 
                        transfers.--Clause (i) shall not apply 
                        to any transfer of money or other 
                        property in connection with any 
                        qualified financial contract with an 
                        insured depository institution if the 
                        Corporation determines that the 
                        transferee had actual intent to hinder, 
                        delay, or defraud such institution, the 
                        creditors of such institution, or any 
                        conservator or receiver appointed for 
                        such institution.
                  (D) Certain contracts and agreements 
                defined.--For purposes of this subsection, the 
                following definitions shall apply:
                          (i) Qualified financial contract.--
                        The term ``qualified financial 
                        contract'' means any securities 
                        contract, commodity contract, forward 
                        contract, repurchase agreement, swap 
                        agreement, and any similar agreement 
                        that the Corporation determines by 
                        regulation, resolution, or order to be 
                        a qualified financial contract for 
                        purposes of this paragraph.
                          (ii) Securities contract.--The term 
                        ``securities contract''--
                                  (I) means a contract for the 
                                purchase, sale, or loan of a 
                                security, a certificate of 
                                deposit, a mortgage loan, any 
                                interest in a mortgage loan, a 
                                group or index of securities, 
                                certificates of deposit, or 
                                mortgage loans or interests 
                                therein (including any interest 
                                therein or based on the value 
                                thereof) or any option on any 
                                of the foregoing, including any 
                                option to purchase or sell any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option, and including any 
                                repurchase or reverse 
                                repurchase transaction on any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option (whether or not such 
                                repurchase or reverse 
                                repurchase transaction is a 
                                ``repurchase agreement'', as 
                                defined in clause (v));
                                  (II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                agreement within the meaning of 
                                such term;
                                  (III) means any option 
                                entered into on a national 
                                securities exchange relating to 
                                foreign currencies;
                                  (IV) means the guarantee 
                                (including by novation) by or 
                                to any securities clearing 
                                agency of any settlement of 
                                cash, securities, certificates 
                                of deposit, mortgage loans or 
                                interests therein, group or 
                                index of securities, 
                                certificates of deposit, or 
                                mortgage loans or interests 
                                therein (including any interest 
                                therein or based on the value 
                                thereof) or option on any of 
                                the foregoing, including any 
                                option to purchase or sell any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option (whether or not such 
                                settlement is in connection 
                                with any agreement or 
                                transaction referred to in 
                                subclauses (I) through (XII) 
                                (other than subclause (II));
                                  (V) means any margin loan;
                                  (VI) means any extension of 
                                credit for the clearance or 
                                settlement of securities 
                                transactions;
                                  (VII) means any loan 
                                transaction coupled with a 
                                securities collar transaction, 
                                any prepaid securities forward 
                                transaction, or any total 
                                return swap transaction coupled 
                                with a securities sale 
                                transaction;
                                  (VIII) means any other 
                                agreement or transaction that 
                                is similar to any agreement or 
                                transaction referred to in this 
                                clause;
                                  (IX) means any combination of 
                                the agreements or transactions 
                                referred to in this clause;
                                  (X) means any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  (XI) means a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclause (I), (III), (IV), 
                                (V), (VI), (VII), (VIII), (IX), 
                                or (X), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                securities contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a securities contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (III), (IV), 
                                (V), (VI), (VII), (VIII), (IX), 
                                or (X); and
                                  (XII) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in this 
                                clause, including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.
                          (iii) Commodity contract.--The term 
                        ``commodity contract'' means--
                                  (I) with respect to a futures 
                                commission merchant, a contract 
                                for the purchase or sale of a 
                                commodity for future delivery 
                                on, or subject to the rules of, 
                                a contract market or board of 
                                trade;
                                  (II) with respect to a 
                                foreign futures commission 
                                merchant, a foreign future;
                                  (III) with respect to a 
                                leverage transaction merchant, 
                                a leverage transaction;
                                  (IV) with respect to a 
                                clearing organization, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade that is cleared 
                                by such clearing organization, 
                                or commodity option traded on, 
                                or subject to the rules of, a 
                                contract market or board of 
                                trade that is cleared by such 
                                clearing organization;
                                  (V) with respect to a 
                                commodity options dealer, a 
                                commodity option;
                                  (VI) any other agreement or 
                                transaction that is similar to 
                                any agreement or transaction 
                                referred to in this clause;
                                  (VII) any combination of the 
                                agreements or transactions 
                                referred to in this clause;
                                  (VIII) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  (IX) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in 
                                subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                commodity contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a commodity contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII); or
                                  (X) any security agreement or 
                                arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.
                          (iv) Forward contract.--The term 
                        ``forward contract'' means--
                                  (I) a contract (other than a 
                                commodity contract) for the 
                                purchase, sale, or transfer of 
                                a commodity or any similar 
                                good, article, service, right, 
                                or interest which is presently 
                                or in the future becomes the 
                                subject of dealing in the 
                                forward contract trade, or 
                                product or byproduct thereof, 
                                with a maturity date more than 
                                2 days after the date the 
                                contract is entered into, 
                                including, a repurchase or 
                                reverse repurchase transaction 
                                (whether or not such repurchase 
                                or reverse repurchase 
                                transaction is a ``repurchase 
                                agreement'', as defined in 
                                clause (v)), consignment, 
                                lease, swap, hedge transaction, 
                                deposit, loan, option, 
                                allocated transaction, 
                                unallocated transaction, or any 
                                other similar agreement;
                                  (II) any combination of 
                                agreements or transactions 
                                referred to in subclauses (I) 
                                and (III);
                                  (III) any option to enter 
                                into any agreement or 
                                transaction referred to in 
                                subclause (I) or (II);
                                  (IV) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in 
                                subclauses (I), (II), or (III), 
                                together with all supplements 
                                to any such master agreement, 
                                without regard to whether the 
                                master agreement provides for 
                                an agreement or transaction 
                                that is not a forward contract 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a forward 
                                contract under this clause only 
                                with respect to each agreement 
                                or transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), or 
                                (III); or
                                  (V) any security agreement or 
                                arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (II), (III), or (IV), including 
                                any guarantee or reimbursement 
                                obligation in connection with 
                                any agreement or transaction 
                                referred to in any such 
                                subclause.
                          (v) Repurchase agreement.--The term 
                        ``repurchase agreement'' (which 
                        definition also applies to a reverse 
                        repurchase agreement)--
                                  (I) means an agreement, 
                                including related terms, which 
                                provides for the transfer of 
                                one or more certificates of 
                                deposit, mortgage-related 
                                securities (as such term is 
                                defined in the Securities 
                                Exchange Act of 1934), mortgage 
                                loans, interests in mortgage-
                                related securities or mortgage 
                                loans, eligible bankers' 
                                acceptances, qualified foreign 
                                government securities or 
                                securities that are direct 
                                obligations of, or that are 
                                fully guaranteed by, the United 
                                States or any agency of the 
                                United States against the 
                                transfer of funds by the 
                                transferee of such certificates 
                                of deposit, eligible bankers' 
                                acceptances, securities, 
                                mortgage loans, or interests 
                                with a simultaneous agreement 
                                by such transferee to transfer 
                                to the transferor thereof 
                                certificates of deposit, 
                                eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, 
                                at a date certain not later 
                                than 1 year after such 
                                transfers or on demand, against 
                                the transfer of funds, or any 
                                other similar agreement;
                                  (II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                participation within the 
                                meaning of such term;
                                  (III) means any combination 
                                of agreements or transactions 
                                referred to in subclauses (I) 
                                and (IV);
                                  (IV) means any option to 
                                enter into any agreement or 
                                transaction referred to in 
                                subclause (I) or (III);
                                  (V) means a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclause (I), (III), or (IV), 
                                together with all supplements 
                                to any such master agreement, 
                                without regard to whether the 
                                master agreement provides for 
                                an agreement or transaction 
                                that is not a repurchase 
                                agreement under this clause, 
                                except that the master 
                                agreement shall be considered 
                                to be a repurchase agreement 
                                under this subclause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (III), or 
                                (IV); and
                                  (VI) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in 
                                subclause (I), (III), (IV), or 
                                (V), including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        For purposes of this clause, the term 
                        ``qualified foreign government 
                        security'' means a security that is a 
                        direct obligation of, or that is fully 
                        guaranteed by, the central government 
                        of a member of the Organization for 
                        Economic Cooperation and Development 
                        (as determined by regulation or order 
                        adopted by the appropriate Federal 
                        banking authority).
                          (vi) Swap agreement.--The term ``swap 
                        agreement'' means--
                                  (I) any agreement, including 
                                the terms and conditions 
                                incorporated by reference in 
                                any such agreement, which is an 
                                interest rate swap, option, 
                                future, or forward agreement, 
                                including a rate floor, rate 
                                cap, rate collar, cross-
                                currency rate swap, and basis 
                                swap; a spot, same day-
                                tomorrow, tomorrow-next, 
                                forward, or other foreign 
                                exchange, precious metals, or 
                                other commodity agreement; a 
                                currency swap, option, future, 
                                or forward agreement; an equity 
                                index or equity swap, option, 
                                future, or forward agreement; a 
                                debt index or debt swap, 
                                option, future, or forward 
                                agreement; a total return, 
                                credit spread or credit swap, 
                                option, future, or forward 
                                agreement; a commodity index or 
                                commodity swap, option, future, 
                                or forward agreement; weather 
                                swap, option, future, or 
                                forward agreement; an emissions 
                                swap, option, future, or 
                                forward agreement; or an 
                                inflation swap, option, future, 
                                or forward agreement;
                                  (II) any agreement or 
                                transaction that is similar to 
                                any other agreement or 
                                transaction referred to in this 
                                clause and that is of a type 
                                that has been, is presently, or 
                                in the future becomes, the 
                                subject of recurrent dealings 
                                in the swap or other 
                                derivatives markets (including 
                                terms and conditions 
                                incorporated by reference in 
                                such agreement) and that is a 
                                forward, swap, future, option, 
                                or spot transaction on one or 
                                more rates, currencies, 
                                commodities, equity securities 
                                or other equity instruments, 
                                debt securities or other debt 
                                instruments, quantitative 
                                measures associated with an 
                                occurrence, extent of an 
                                occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic 
                                consequence, or economic or 
                                financial indices or measures 
                                of economic or financial risk 
                                or value;
                                  (III) any combination of 
                                agreements or transactions 
                                referred to in this clause;
                                  (IV) any option to enter into 
                                any agreement or transaction 
                                referred to in this clause;
                                  (V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in 
                                subclause (I), (II), (III), or 
                                (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                contains an agreement or 
                                transaction that is not a swap 
                                agreement under this clause, 
                                except that the master 
                                agreement shall be considered 
                                to be a swap agreement under 
                                this clause only with respect 
                                to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                or (IV); and
                                  (VI) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreements or transactions 
                                referred to in subclause (I), 
                                (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        Such term is applicable for purposes of 
                        this subsection only and shall not be 
                        construed or applied so as to challenge 
                        or affect the characterization, 
                        definition, or treatment of any swap 
                        agreement under any other statute, 
                        regulation, or rule, including the 
                        Gramm-Leach-Bliley Act, the Legal 
                        Certainty for Bank Products Act of 
                        2000, the securities laws (as such term 
                        is defined in section 3(a)(47) of the 
                        Securities Exchange Act of 1934) and 
                        the Commodity Exchange Act.
                          (vii) Treatment of master agreement 
                        as one agreement.--Any master agreement 
                        for any contract or agreement described 
                        in any preceding clause of this 
                        subparagraph (or any master agreement 
                        for such master agreement or 
                        agreements), together with all 
                        supplements to such master agreement, 
                        shall be treated as a single agreement 
                        and a single qualified financial 
                        contract. If a master agreement 
                        contains provisions relating to 
                        agreements or transactions that are not 
                        themselves qualified financial 
                        contracts, the master agreement shall 
                        be deemed to be a qualified financial 
                        contract only with respect to those 
                        transactions that are themselves 
                        qualified financial contracts.
                          (viii) Transfer.--The term 
                        ``transfer'' means every mode, direct 
                        or indirect, absolute or conditional, 
                        voluntary or involuntary, of disposing 
                        of or parting with property or with an 
                        interest in property, including 
                        retention of title as a security 
                        interest and foreclosure of the 
                        depository institution's equity of 
                        redemption.
                  (ix) Person.--The term ``person'' includes 
                any governmental entity in addition to any 
                entity included in the definition of such term 
                in section 1 of title 1, United States Code.
                  (E) Certain protections in event of 
                appointment of conservator.--Notwithstanding 
                any other provision of this Act (other than 
                subsections (d)(9) and (e)(10) of this section, 
                and section 13(e) of this Act), any other 
                Federal law, or the law of any State, no person 
                shall be stayed or prohibited from exercising--
                          (i) any right such person has to 
                        cause the termination, liquidation, or 
                        acceleration of any qualified financial 
                        contract with a depository institution 
                        in a conservatorship based upon a 
                        default under such financial contract 
                        which is enforceable under applicable 
                        noninsolvency law;
                          (ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);
                          (iii) any right to offset or net out 
                        any termination values, payment 
                        amounts, or other transfer obligations 
                        arising under or in connection with 
                        such qualified financial contracts.
                  (F) Clarification.--No provision of law shall 
                be construed as limiting the right or power of 
                the Corporation, or authorizing any court or 
                agency to limit or delay, in any manner, the 
                right or power of the Corporation to transfer 
                any qualified financial contract in accordance 
                with paragraphs (9) and (10) of this subsection 
                or to disaffirm or repudiate any such contract 
                in accordance with subsection (e)(1) of this 
                section.
                  (G) Walkaway clauses not effective.--
                          (i) In general.--Notwithstanding the 
                        provisions of subparagraphs (A) and 
                        (E), and sections 403 and 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, no walkaway 
                        clause shall be enforceable in a 
                        qualified financial contract of an 
                        insured depository institution in 
                        default.
                          (ii) Limited suspension of certain 
                        obligations.--In the case of a 
                        qualified financial contract referred 
                        to in clause (i), any payment or 
                        delivery obligations otherwise due from 
                        a party pursuant to the qualified 
                        financial contract shall be suspended 
                        from the time the receiver is appointed 
                        until the earlier of--
                                  (I) the time such party 
                                receives notice that such 
                                contract has been transferred 
                                pursuant to subparagraph (A); 
                                or
                                  (II) 5:00 p.m. (eastern time) 
                                on the business day following 
                                the date of the appointment of 
                                the receiver.
                          (iii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        ``walkaway clause'' means any provision 
                        in a qualified financial contract that 
                        suspends, conditions, or extinguishes a 
                        payment obligation of a party, in whole 
                        or in part, or does not create a 
                        payment obligation of a party that 
                        would otherwise exist, solely because 
                        of such party's status as a 
                        nondefaulting party in connection with 
                        the insolvency of an insured depository 
                        institution that is a party to the 
                        contract or the appointment of or the 
                        exercise of rights or powers by a 
                        conservator or receiver of such 
                        depository institution, and not as a 
                        result of a party's exercise of any 
                        right to offset, setoff, or net 
                        obligations that exist under the 
                        contract, any other contract between 
                        those parties, or applicable law.
                  (H) Recordkeeping requirements.--The 
                Corporation, in consultation with the 
                appropriate Federal banking agencies, may 
                prescribe regulations requiring more detailed 
                recordkeeping by any insured depository 
                institution with respect to qualified financial 
                contracts (including market valuations) only if 
                such insured depository institution is in a 
                troubled condition (as such term is defined by 
                the Corporation pursuant to section 32).
          (9) Transfer of qualified financial contracts.--
                  (A) In general.--In making any transfer of 
                assets or liabilities of a depository 
                institution in default which includes any 
                qualified financial contract, the conservator 
                or receiver for such depository institution 
                shall either--
                          (i) transfer to one financial 
                        institution, other than a financial 
                        institution for which a conservator, 
                        receiver, trustee in bankruptcy, or 
                        other legal custodian has been 
                        appointed or which is otherwise the 
                        subject of a bankruptcy or insolvency 
                        proceeding--
                                  (I) all qualified financial 
                                contracts between any person or 
                                any affiliate of such person 
                                and the depository institution 
                                in default;
                                  (II) all claims of such 
                                person or any affiliate of such 
                                person against such depository 
                                institution under any such 
                                contract (other than any claim 
                                which, under the terms of any 
                                such contract, is subordinated 
                                to the claims of general 
                                unsecured creditors of such 
                                institution);
                                  (III) all claims of such 
                                depository institution against 
                                such person or any affiliate of 
                                such person under any such 
                                contract; and
                                  (IV) all property securing or 
                                any other credit enhancement 
                                for any contract described in 
                                subclause (I) or any claim 
                                described in subclause (II) or 
                                (III) under any such contract; 
                                or
                          (ii) transfer none of the qualified 
                        financial contracts, claims, property 
                        or other credit enhancement referred to 
                        in clause (i) (with respect to such 
                        person and any affiliate of such 
                        person).
                  (B) Transfer to foreign bank, foreign 
                financial institution, or branch or agency of a 
                foreign bank or financial institution.--In 
                transferring any qualified financial contracts 
                and related claims and property under 
                subparagraph (A)(i), the conservator or 
                receiver for the depository institution shall 
                not make such transfer to a foreign bank, 
                financial institution organized under the laws 
                of a foreign country, or a branch or agency of 
                a foreign bank or financial institution unless, 
                under the law applicable to such bank, 
                financial institution, branch or agency, to the 
                qualified financial contracts, and to any 
                netting contract, any security agreement or 
                arrangement or other credit enhancement related 
                to one or more qualified financial contracts, 
                the contractual rights of the parties to such 
                qualified financial contracts, netting 
                contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted 
                under this section.
                  (C) Transfer of contracts subject to the 
                rules of a clearing organization.--In the event 
                that a conservator or receiver transfers any 
                qualified financial contract and related 
                claims, property, and credit enhancements 
                pursuant to subparagraph (A)(i) and such 
                contract is cleared by or subject to the rules 
                of a clearing organization, the clearing 
                organization shall not be required to accept 
                the transferee as a member by virtue of the 
                transfer.
                  (D) Definitions.--For purposes of this 
                paragraph, the term ``financial institution'' 
                means a broker or dealer, a depository 
                institution, a futures commission merchant, or 
                any other institution, as determined by the 
                Corporation by regulation to be a financial 
                institution, and the term ``clearing 
                organization'' has the same meaning as in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991.
          (10) Notification of transfer.--
                  (A) In general.--If--
                          (i) the conservator or receiver for 
                        an insured depository institution in 
                        default makes any transfer of the 
                        assets and liabilities of such 
                        institution; and
                          (ii) the transfer includes any 
                        qualified financial contract,
                the conservator or receiver shall notify any 
                person who is a party to any such contract of 
                such transfer by 5:00 p.m. (eastern time) on 
                the business day following the date of the 
                appointment of the receiver in the case of a 
                receivership, or the business day following 
                such transfer in the case of a conservatorship.
                  (B) Certain rights not enforceable.--
                          (i) Receivership.--A person who is a 
                        party to a qualified financial contract 
                        with an insured depository institution 
                        may not exercise any right that such 
                        person has to terminate, liquidate, or 
                        net such contract under paragraph 
                        (8)(A) of this subsection or section 
                        403 or 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act 
                        of 1991, solely by reason of or 
                        incidental to the appointment of a 
                        receiver for the depository institution 
                        (or the insolvency or financial 
                        condition of the depository institution 
                        for which the receiver has been 
                        appointed)--
                                  (I) until 5:00 p.m. (eastern 
                                time) on the business day 
                                following the date of the 
                                appointment of the receiver; or
                                  (II) after the person has 
                                received notice that the 
                                contract has been transferred 
                                pursuant to paragraph (9)(A).
                          (ii) Conservatorship.--A person who 
                        is a party to a qualified financial 
                        contract with an insured depository 
                        institution may not exercise any right 
                        that such person has to terminate, 
                        liquidate, or net such contract under 
                        paragraph (8)(E) of this subsection or 
                        section 403 or 404 of the Federal 
                        Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a conservator for the 
                        depository institution (or the 
                        insolvency or financial condition of 
                        the depository institution for which 
                        the conservator has been appointed).
                          (iii) Notice.--For purposes of this 
                        paragraph, the Corporation as receiver 
                        or conservator of an insured depository 
                        institution shall be deemed to have 
                        notified a person who is a party to a 
                        qualified financial contract with such 
                        depository institution if the 
                        Corporation has taken steps reasonably 
                        calculated to provide notice to such 
                        person by the time specified in 
                        subparagraph (A).
                  (C) Treatment of Bridge Depository 
                Institutions.--The following institutions shall 
                not be considered to be a financial institution 
                for which a conservator, receiver, trustee in 
                bankruptcy, or other legal custodian has been 
                appointed or which is otherwise the subject of 
                a bankruptcy or insolvency proceeding for 
                purposes of paragraph (9):
                          (i) A bridge depository institution.
                          (ii) A depository institution 
                        organized by the Corporation, for which 
                        a conservator is appointed either--
                                  (I) immediately upon the 
                                organization of the 
                                institution; or
                                  (II) at the time of a 
                                purchase and assumption 
                                transaction between the 
                                depository institution and the 
                                Corporation as receiver for a 
                                depository institution in 
                                default.
                  (D) Business day defined.--For purposes of 
                this paragraph, the term ``business day'' means 
                any day other than any Saturday, Sunday, or any 
                day on which either the New York Stock Exchange 
                or the Federal Reserve Bank of New York is 
                closed.
          (11) Disaffirmance or repudiation of qualified 
        financial contracts.--In exercising the rights of 
        disaffirmance or repudiation of a conservator or 
        receiver with respect to any qualified financial 
        contract to which an insured depository institution is 
        a party, the conservator or receiver for such 
        institution shall either--
                  (A) disaffirm or repudiate all qualified 
                financial contracts between--
                          (i) any person or any affiliate of 
                        such person; and
                          (ii) the depository institution in 
                        default; or
                  (B) disaffirm or repudiate none of the 
                qualified financial contracts referred to in 
                subparagraph (A) (with respect to such person 
                or any affiliate of such person).
          (12) Certain security interests not avoidable.--No 
        provision of this subsection shall be construed as 
        permitting the avoidance of any legally enforceable or 
        perfected security interest in any of the assets of any 
        depository institution except where such an interest is 
        taken in contemplation of the institution's insolvency 
        or with the intent to hinder, delay, or defraud the 
        institution or the creditors of such institution.
          (13) Authority to enforce contracts.--
                  (A) In general.--The conservator or receiver 
                may enforce any contract, other than a 
                director's or officer's liability insurance 
                contract or a depository institution bond, 
                entered into by the depository institution 
                notwithstanding any provision of the contract 
                providing for termination, default, 
                acceleration, or exercise of rights upon, or 
                solely by reason of, insolvency or the 
                appointment of or the exercise of rights or 
                powers by a conservator or receiver.
                  (B) Certain rights not affected.--No 
                provision of this paragraph may be construed as 
                impairing or affecting any right of the 
                conservator or receiver to enforce or recover 
                under a director's or officer's liability 
                insurance contract or depository institution 
                bond under other applicable law.
                  (C) Consent requirement.--
                          (i) In general.--Except as otherwise 
                        provided by this section or section 15, 
                        no person may exercise any right or 
                        power to terminate, accelerate, or 
                        declare a default under any contract to 
                        which the depository institution is a 
                        party, or to obtain possession of or 
                        exercise control over any property of 
                        the institution or affect any 
                        contractual rights of the institution, 
                        without the consent of the conservator 
                        or receiver, as appropriate, during the 
                        45-day period beginning on the date of 
                        the appointment of the conservator, or 
                        during the 90-day period beginning on 
                        the date of the appointment of the 
                        receiver, as applicable.
                          (ii) Certain exceptions.--No 
                        provision of this subparagraph shall 
                        apply to a director or officer 
                        liability insurance contract or a 
                        depository institution bond, to the 
                        rights of parties to certain qualified 
                        financial contracts pursuant to 
                        paragraph (8), or to the rights of 
                        parties to netting contracts pursuant 
                        to subtitle A of title IV of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991 (12 U.S.C. 4401 
                        et seq.), or shall be construed as 
                        permitting the conservator or receiver 
                        to fail to comply with otherwise 
                        enforceable provisions of such 
                        contract.
                          (iii) Rule of construction.--Nothing 
                        in this subparagraph shall be construed 
                        to limit or otherwise affect the 
                        applicability of title 11, United 
                        States Code.
          (14) Exception for federal reserve and federal home 
        loan banks.--No provision of this subsection shall 
        apply with respect to--
                  (A) any extension of credit from any Federal 
                home loan bank or Federal Reserve bank to any 
                insured depository institution; or
                  (B) any security interest in the assets of 
                the institution securing any such extension of 
                credit.
          (15) Selling credit card accounts receivable.--
                  (A) Notification required.--An 
                undercapitalized insured depository institution 
                (as defined in section 38) shall notify the 
                Corporation in writing before entering into an 
                agreement to sell credit card accounts 
                receivable.
                  (B) Waiver by corporation.--The Corporation 
                may at any time, in its sole discretion and 
                upon such terms as it may prescribe, waive its 
                right to repudiate an agreement to sell credit 
                card accounts receivable if the Corporation--
                          (i) determines that the waiver is in 
                        the best interests of the Deposit 
                        Insurance Fund; and
                          (ii) provides a written waiver to the 
                        selling institution.
                  (C) Effect of waiver on successors.--
                          (i) In general.--If, under 
                        subparagraph (B), the Corporation has 
                        waived its right to repudiate an 
                        agreement to sell credit card accounts 
                        receivable--
                                  (I) any provision of the 
                                agreement that restricts 
                                solicitation of a credit card 
                                customer of the selling 
                                institution, or the use of a 
                                credit card customer list of 
                                the institution, shall bind any 
                                receiver or conservator of the 
                                institution; and
                                  (II) the Corporation shall 
                                require any acquirer of the 
                                selling institution, or of 
                                substantially all of the 
                                selling institution's assets or 
                                liabilities, to agree to be 
                                bound by a provision described 
                                in subclause (I) as if the 
                                acquirer were the selling 
                                institution.
                          (ii) Exception.--Clause (i)(II) does 
                        not--
                                  (I) restrict the acquirer's 
                                authority to offer any product 
                                or service to any person 
                                identified without using a list 
                                of the selling institution's 
                                customers in violation of the 
                                agreement;
                                  (II) require the acquirer to 
                                restrict any preexisting 
                                relationship between the 
                                acquirer and a customer; or
                                  (III) apply to any 
                                transaction in which the 
                                acquirer acquires only insured 
                                deposits.
                  (D) Waiver not actionable.--The Corporation 
                shall not, in any capacity, be liable to any 
                person for damages resulting from the waiver of 
                or failure to waive the Corporation's right 
                under this section to repudiate any contract or 
                lease, including an agreement to sell credit 
                card accounts receivable. No court shall issue 
                any order affecting any such waiver or failure 
                to waive.
                  (E) Other authority not affected.--This 
                paragraph does not limit any other authority of 
                the Corporation to waive the Corporation's 
                right to repudiate an agreement or lease under 
                this section.
          (16) Certain credit card customer lists protected.--
                  (A) In general.--If any insured depository 
                institution sells credit card accounts 
                receivable under an agreement negotiated at 
                arm's length that provides for the sale of the 
                institution's credit card customer list, the 
                Corporation shall prohibit any party to a 
                transaction with respect to the institution 
                under this section or section 13 from using the 
                list, except as permitted under the agreement.
                  (B) Fraudulent transactions excluded.--
                Subparagraph (A) does not limit the 
                Corporation's authority to repudiate any 
                agreement entered into with the intent to 
                hinder, delay, or defraud the institution, the 
                institution's creditors, or the Corporation.
          (17) Savings clause.--The meanings of terms used in 
        this subsection are applicable for purposes of this 
        subsection only, and shall not be construed or applied 
        so as to challenge or affect the characterization, 
        definition, or treatment of any similar terms under any 
        other statute, regulation, or rule, including the 
        Gramm-Leach-Bliley Act, the Legal Certainty for Bank 
        Products Act of 2000, the securities laws (as that term 
        is defined in section 3(a)(47) of the Securities 
        Exchange Act of 1934), and the Commodity Exchange Act.
  (f) Payment of Insured Deposits.--
          (1) In general.--In case of the liquidation of, or 
        other closing or winding up of the affairs of, any 
        insured depository institution, payment of the insured 
        deposits in such institution shall be made by the 
        Corporation as soon as possible, subject to the 
        provisions of subsection (g), either by cash or by 
        making available to each depositor a transferred 
        deposit in a new insured depository institution in the 
        same community or in another insured depository 
        institution in an amount equal to the insured deposit 
        of such depositor.
          (2) Proof of claims.--The Corporation, in its 
        discretion, may require proof of claims to be filed and 
        may approve or reject such claims for insured deposits.
          (3) Resolution of disputes.--A determination by the 
        Corporation regarding any claim for insurance coverage 
        shall be treated as a final determination for purposes 
        of this section. In its discretion, the Corporation may 
        promulgate regulations prescribing procedures for 
        resolving any disputed claim relating to any insured 
        deposit or any determination of insurance coverage with 
        respect to any deposit.
          (4) Review of corporation determination.--A final 
        determination made by the Corporation regarding any 
        claim for insurance coverage shall be a final agency 
        action reviewable in accordance with chapter 7 of title 
        5, United States Code, by the United States district 
        court for the Federal judicial district where the 
        principal place of business of the depository 
        institution is located.
          (5) Statute of limitations.--Any request for review 
        of a final determination by the Corporation regarding 
        any claim for insurance coverage shall be filed with 
        the appropriate United States district court not later 
        than 60 days after the date on which such determination 
        is issued.
  (g) Subrogation of corporation.--
          (1) In general.--Notwithstanding any other provision 
        of Federal law, the law of any State, or the 
        constitution of any State, the Corporation, upon the 
        payment to any depositor as provided in subsection (f) 
        in connection with any insured depository institution 
        or insured branch described in such subsection or the 
        assumption of any deposit in such institution or branch 
        by another insured depository institution pursuant to 
        this section or section 13, shall be subrogated to all 
        rights of the depositor against such institution or 
        branch to the extent of such payment or assumption.
          (2) Dividends on subrogated amounts.--The subrogation 
        of the Corporation under paragraph (1) with respect to 
        any insured depository institution shall include the 
        right on the part of the Corporation to receive the 
        same dividends from the proceeds of the assets of such 
        institution and recoveries on account of stockholders' 
        liability as would have been payable to the depositor 
        on a claim for the insured deposit, but such depositor 
        shall retain such claim for any uninsured or unassumed 
        portion of the deposit.
          (3) Waiver of certain claims.--With respect to any 
        bank which closes after May 25, 1938, the Corporation 
        shall waive, in favor only of any person against whom 
        stockholders' individual liability may be asserted, any 
        claim on account of such liability in excess of the 
        liability, if any, to the bank or its creditors, for 
        the amount unpaid upon such stock in such bank; but any 
        such waiver shall be effected in such manner and on 
        such terms and conditions as will not increase 
        recoveries or dividends on account of claims to which 
        the Corporation is not subrogated.
          (4) Applicability of state law.--Subject to 
        subsection (d)(11), if the Corporation is appointed 
        pursuant to subsection (c)(3), or determines not to 
        invoke the authority conferred in subsection (c)(4), 
        the rights of depositors and other creditors of any 
        State depository institution shall be determined in 
        accordance with the applicable provisions of State law.
  (h) Conditions Applicable To Resolution Proceedings.--
          (1) Consideration of local economic impact 
        required.--The Corporation shall fully consider the 
        adverse economic impact on local communities, including 
        businesses and farms, of actions to be taken by it 
        during the administration and liquidation of loans of a 
        depository institution in default.
          (2) Actions to alleviate adverse economic impact to 
        be considered.--The actions which the Corporation shall 
        consider include the release of proceeds from the sale 
        of products and services for family living and business 
        expenses and shortening the undue length of the 
        decisionmaking process for the acceptance of offers of 
        settlement contingent upon third party financing.
          (3) Guidelines required.--The Corporation shall adopt 
        and publish procedures and guidelines to minimize 
        adverse economic effects caused by its actions on 
        individual debtors in the community.
          (4) Financial services industry impact analysis.--
        After the appointment of the Corporation as conservator 
        or receiver for any insured depository institution and 
        before taking any action under this section or section 
        13 in connection with the resolution of such 
        institution, the Corporation shall--
                  (A) evaluate the likely impact of the means 
                of resolution, and any action which the 
                Corporation may take in connection with such 
                resolution, on the viability of other insured 
                depository institutions in the same community; 
                and
                  (B) take such evaluation into account in 
                determining the means for resolving the 
                institution and establishing the terms and 
                conditions for any such action.
  (i) Valuation of Claims in Default.--
          (1) In general.--Notwithstanding any other provision 
        of Federal law or the law of any State and regardless 
        of the method which the Corporation determines to 
        utilize with respect to an insured depository 
        institution in default or in danger of default, 
        including transactions authorized under subsection (n) 
        and section 13(c), this subsection shall govern the 
        rights of the creditors (other than insured depositors) 
        of such institution.
          (2) Maximum liability.--The maximum liability of the 
        Corporation, acting as receiver or in any other 
        capacity, to any person having a claim against the 
        receiver or the insured depository institution for 
        which such receiver is appointed shall equal the amount 
        such claimant would have received if the Corporation 
        had liquidated the assets and liabilities of such 
        institution without exercising the Corporation's 
        authority under subsection (n) of this section or 
        section 13.
          (3) Additional payments authorized.--
                  (A) In general.--The Corporation may, in its 
                discretion and in the interests of minimizing 
                its losses, use its own resources to make 
                additional payments or credit additional 
                amounts to or with respect to or for the 
                account of any claimant or category of 
                claimants. Notwithstanding any other provision 
                of Federal or State law, or the constitution of 
                any State, the Corporation shall not be 
                obligated, as a result of having made any such 
                payment or credited any such amount to or with 
                respect to or for the account of any claimant 
                or category of claimants, to make payments to 
                any other claimant or category of claimants.
                  (B) Manner of payment.--The Corporation may 
                make the payments or credit the amounts 
                specified in subparagraph (A) directly to the 
                claimants or may make such payments or credit 
                such amounts to an open insured depository 
                institution to induce such institution to 
                accept liability for such claims.
  (j) Limitation on court action.--Except as provided in this 
section, no court may take any action, except at the request of 
the Board of Directors by regulation or order, to restrain or 
affect the exercise of powers or functions of the Corporation 
as a conservator or a receiver.
  (k) Liability of directors and officers.--A director or 
officer of an insured depository institution may be held 
personally liable for monetary damages in any civil action by, 
on behalf of, or at the request or direction of the 
Corporation, which action is prosecuted wholly or partially for 
the benefit of the Corporation--
          (1) acting as conservator or receiver of such 
        institution,
          (2) acting based upon a suit, claim, or cause of 
        action purchased from, assigned by, or otherwise 
        conveyed by such receiver or conservator, or
          (3) acting based upon a suit, claim, or cause of 
        action purchased from, assigned by, or otherwise 
        conveyed in whole or in part by an insured depository 
        institution or its affiliate in connection with 
        assistance provided under section 13,
for gross negligence, including any similar conduct or conduct 
that demonstrates a greater disregard of a duty of care (than 
gross negligence) including intentional tortious conduct, as 
such terms are defined and determined under applicable State 
law. Nothing in this paragraph shall impair or affect any right 
of the Corporation under other applicable law.
  (l) Damages.--In any proceeding related to any claim against 
an insured depository institution's director, officer, 
employee, agent, attorney, accountant, appraiser, or any other 
party employed by or providing services to an insured 
depository institution, recoverable damages determined to 
result from the improvident or otherwise improper use or 
investment of any insured depository institution's assets shall 
include principal losses and appropriate interest.
  (m) New Depository Institutions.--
          (1) Organization authorized.--As soon as possible 
        after the default of an insured depository institution, 
        the Corporation, if it finds that it is advisable and 
        in the interest of the depositors of the insured 
        depository institution in default or the public shall 
        organize a new national bank or Federal savings 
        association in the same community as the insured 
        depository institution in default to assume the insured 
        deposits of such depository institution in default and 
        otherwise to perform temporarily the functions 
        hereinafter provided for.
          (2) Articles of association.--The articles of 
        association and the organization certificate of the new 
        depository institution shall be executed by 
        representatives designated by the Corporation.
          (3) Capital stock.--No capital stock need be paid in 
        by the Corporation.
          (4) Executive officer.--The new depository 
        institution shall not have a board of directors, but 
        shall be managed by an executive officer appointed by 
        the Board of Directors of the Corporation who shall be 
        subject to its directions.
          (5) Subject to laws relating to national banks.--In 
        all other respects the new depository institution shall 
        be organized in accordance with the then existing 
        provisions of law relating to the organization of 
        national banking associations.
          (6) New deposits.--The new depository institution 
        may, with the approval of the Corporation, accept new 
        deposits which shall be subject to withdrawal on demand 
        and which, except where the new depository institution 
        is the only depository institution in the community, 
        shall not exceed an amount equal to the standard 
        maximum deposit insurance amount from any depositor.
          (7) Insured status.--The new depository institution, 
        without application to or approval by the Corporation, 
        shall be an insured depository institution and shall 
        maintain on deposit with the Federal Reserve bank of 
        its district reserves in the amount required by law for 
        member banks, but it shall not be required to subscribe 
        for stock of the Federal Reserve bank.
          (8) Investments.--Funds of the new depository 
        institution shall be kept on hand in cash, invested in 
        obligations of the United States or obligations 
        guaranteed as to principal and interest by the United 
        States, or deposited with the Corporation, any Federal 
        Reserve bank, or, to the extent of the insurance 
        coverage on any such deposit, an insured depository 
        institution.
          (9) Conduct of business.--The new depository 
        institution, unless otherwise authorized by the 
        Comptroller of the Currency, shall transact business 
        only as authorized by this Act and as may be incidental 
        to its organization.
          (10) Exempt status.--Notwithstanding any other 
        provision of Federal or State law, the new depository 
        institution, its franchise, property, and income shall 
        be exempt from all taxation now or hereafter imposed by 
        the United States, by any territory, dependency, or 
        possession thereof, or by any State, county, 
        municipality, or local taxing authority.
          (11) Transfer of deposits.--(A) Upon the organization 
        of a new depository institution, the Corporation shall 
        promptly make available to it an amount equal to the 
        estimated insured deposits of such depository 
        institution in default plus the estimated amount of the 
        expenses of operating the new depository institution, 
        and shall determine as soon as possible the amount due 
        each depositor for the depositor's insured deposit in 
        the insured depository institution in default, and the 
        total expenses of operation of the new depository 
        institution.
          (12) Earnings.--Earnings of the new depository 
        institution shall be paid over or credited to the 
        Corporation in such adjustment.
          (13) Losses.--If any new depository institution, 
        during the period it continues its status as such, 
        sustains any losses with respect to which it is not 
        effectively protected except by reason of being an 
        insured depository institution, the Corporation shall 
        furnish to it additional funds in the amount of such 
        losses.
          (14) Payment of insured deposits.--(A) The new 
        depository institution shall assume as transferred 
        deposits the payment of the insured deposits of such 
        depository institution in default to each of its 
        depositors.
          (B) Of the amounts so made available, the Corporation 
        shall transfer to the new depository institution, in 
        cash, such sums as may be necessary to enable it to 
        meet its expenses of operation and immediate cash 
        demands on such transferred deposits, and the remainder 
        of such amounts shall be subject to withdrawal by the 
        new depository institution on demand.
          (15) Issuance of stock.--(A) Whenever in the judgment 
        of the Board of Directors it is desirable to do so, the 
        Corporation shall cause capital stock of the new 
        depository institution to be offered for sale on such 
        terms and conditions as the Board of Directors shall 
        deem advisable in an amount sufficient, in the opinion 
        of the Board of Directors, to make possible the conduct 
        of the business of the new depository institution on a 
        sound basis.
          (B) The stockholders of the insured depository 
        institution in default shall be given the first 
        opportunity to purchase any shares of common stock so 
        offered.
          (16) Issuance of certificate.--Upon proof that an 
        adequate amount of capital stock in the new depository 
        institution has been subscribed and paid for in cash, 
        the Comptroller of the Currency, shall require the 
        articles of association and the organization 
        certificate to be amended to conform to the 
        requirements for the organization of a national bank or 
        Federal savings association, and thereafter, when the 
        requirements of law with respect to the organization of 
        a national bank or Federal savings association have 
        been complied with, the Comptroller of the Currency, 
        shall issue to the depository institution a certificate 
        of authority to commence business, and thereupon the 
        depository institution shall cease to have the status 
        of a new depository institution, shall be managed by 
        directors elected by its own shareholders, may exercise 
        all the powers granted by law, and shall be subject to 
        all provisions of law relating to national banks or 
        Federal savings associations. Such depository 
        institution shall thereafter be an insured national 
        bank or Federal savings association, without 
        certification to or approval by the Corporation.
          (17) Transfer to other institution.--If the capital 
        stock of the new depository institution is not offered 
        for sale, or if an adequate amount of capital for such 
        new depository institution is not subscribed and paid 
        for, the Board of Directors may offer to transfer its 
        business to any insured depository institution in the 
        same community which will take over its assets, assume 
        its liabilities, and pay to the Corporation for such 
        business such amount as the Board of Directors may deem 
        adequate; or the Board of Directors in its discretion 
        may change the location of the new depository 
        institution to the office of the Corporation or to some 
        other place or may at any time wind up its affairs as 
        herein provided.
          (18) Winding up.--Unless the capital stock of the new 
        depository institution is sold or its assets are taken 
        over and its liabilities are assumed by an insured 
        depository institution as above provided within 2 years 
        after the date of its organization, the Corporation 
        shall wind up the affairs of such depository 
        institution, after giving such notice, if any, as the 
        Comptroller of the Currency, may require, and shall 
        certify to the Comptroller of the Currency, the 
        termination of the new depository institution. 
        Thereafter the Corporation shall be liable for the 
        obligations of such depository institution and shall be 
        the owner of its assets.
          (19) Applicability of certain laws.--The provisions 
        of sections 5220 and 5221 of the Revised Statutes shall 
        not apply to a new depository institution under this 
        subsection.
  (n) Bridge Depository Institutions.--
          (1) Organization.--
                  (A) Purpose.--When 1 or more insured 
                depository institutions are in default, or when 
                the Corporation anticipates that 1 or more 
                insured depository institutions may become in 
                default, the Corporation may, in its 
                discretion, organize, and the Office of the 
                Comptroller of the Currency, with respect to 1 
                or more insured depository institutions or 1 or 
                more insured savings associations, shall 
                charter, 1 or more national banks or Federal 
                savings associations, as appropriate, with 
                respect thereto with the powers and attributes 
                of national banking associations or Federal 
                savings associations, as applicable, subject to 
                the provisions of this subsection, to be 
                referred to as ``bridge depository 
                institutions''.
                  (B) Authorities.--Upon the granting of a 
                charter to a bridge depository institution, the 
                bridge depository institution may--
                          (i) assume such deposits of such 
                        insured depository institution or banks 
                        that is or are in default or in danger 
                        of default as the Corporation may, in 
                        its discretion, determine to be 
                        appropriate;
                          (ii) assume such other liabilities 
                        (including liabilities associated with 
                        any trust business) of such insured 
                        depository institution or banks that is 
                        or are in default or in danger of 
                        default as the Corporation may, in its 
                        discretion, determine to be 
                        appropriate;
                          (iii) purchase such assets (including 
                        assets associated with any trust 
                        business) of such insured depository 
                        institution or banks that is or are in 
                        default or in danger of default as the 
                        Corporation may, in its discretion, 
                        determine to be appropriate; and
                          (iv) perform any other temporary 
                        function which the Corporation may, in 
                        its discretion, prescribe in accordance 
                        with this Act.
                  (C) Articles of association.--The articles of 
                association and organization certificate of a 
                bridge depository institution as approved by 
                the Corporation shall be executed by 3 
                representatives designated by the Corporation.
                  (D) Interim directors.--A bridge depository 
                institution shall have an interim board of 
                directors consisting of not fewer than 5 nor 
                more than 10 members appointed by the 
                Corporation.
                  (E) National bank or federal savings 
                association.--A bridge depository institution 
                shall be organized as a national bank, in the 
                case of 1 or more insured depository 
                institutions, and as a Federal savings 
                association, in the case of 1 or more insured 
                savings associations.
          (2) Chartering.--
                  (A) Conditions.--A national bank or Federal 
                savings association may be chartered by the 
                Comptroller of the Currency as a bridge 
                depository institution only if the Board of 
                Directors determines that--
                          (i) the amount which is reasonably 
                        necessary to operate such bridge 
                        depository institution will not exceed 
                        the amount which is reasonably 
                        necessary to save the cost of 
                        liquidating, including paying the 
                        insured accounts of, 1 or more insured 
                        depository institutions in default or 
                        in danger of default with respect to 
                        which the bridge depository institution 
                        is chartered;
                          (ii) the continued operation of such 
                        insured depository institution or banks 
                        in default or in danger of default with 
                        respect to which the bridge depository 
                        institution is chartered is essential 
                        to provide adequate banking services in 
                        the community where each such 
                        depository institution in default or in 
                        danger of default is located; or
                          (iii) the continued operation of such 
                        insured depository institution or banks 
                        in default or in danger of default with 
                        respect to which the bridge depository 
                        institution is chartered is in the best 
                        interest of the depositors of such 
                        depository institution or banks in 
                        default or in danger of default or the 
                        public.
                  (B) Insured national bank or federal savings 
                association.--A bridge depository institution 
                shall be an insured depository institution from 
                the time it is chartered as a national bank or 
                Federal savings association.
                  (C) Bridge bank treated as being in default 
                for certain purposes.--A bridge depository 
                institution shall be treated as an insured 
                depository institution in default at such times 
                and for such purposes as the Corporation may, 
                in its discretion, determine.
                  (D) Management.--A bridge depository 
                institution, upon the granting of its charter, 
                shall be under the management of a board of 
                directors consisting of not fewer than 5 nor 
                more than 10 members appointed by the 
                Corporation.
                  (E) Bylaws.--The board of directors of a 
                bridge depository institution shall adopt such 
                bylaws as may be approved by the Corporation.
          (3) Transfer of assets and liabilities.--
                  (A) In general.--
                          (i) Transfer upon grant of charter.--
                        Upon the granting of a charter to a 
                        bridge depository institution pursuant 
                        to this subsection, the Corporation, as 
                        receiver, or any other receiver 
                        appointed with respect to any insured 
                        depository institution in default with 
                        respect to which the bridge depository 
                        institution is chartered may transfer 
                        any assets and liabilities of such 
                        depository institution in default to 
                        the bridge depository institution in 
                        accordance with paragraph (1).
                          (ii) Subsequent transfers.--At any 
                        time after a charter is granted to a 
                        bridge depository institution, the 
                        Corporation, as receiver, or any other 
                        receiver appointed with respect to an 
                        insured depository institution in 
                        default may transfer any assets and 
                        liabilities of such insured depository 
                        institution in default as the 
                        Corporation may, in its discretion, 
                        determine to be appropriate in 
                        accordance with paragraph (1).
                          (iii) Treatment of trust business.--
                        For purposes of this paragraph, the 
                        trust business, including fiduciary 
                        appointments, of any insured depository 
                        institution in default is included 
                        among its assets and liabilities.
                          (iv) Effective without approval.--The 
                        transfer of any assets or liabilities, 
                        including those associated with any 
                        trust business, of an insured 
                        depository institution in default 
                        transferred to a bridge depository 
                        institution shall be effective without 
                        any further approval under Federal or 
                        State law, assignment, or consent with 
                        respect thereto.
                  (B) Intent of congress regarding continuing 
                operations.--It is the intent of the Congress 
                that, in order to prevent unnecessary hardship 
                or losses to the customers of any insured 
                depository institution in default with respect 
                to which a bridge depository institution is 
                chartered, especially creditworthy farmers, 
                small businesses, and households, the 
                Corporation should--
                          (i) continue to honor commitments 
                        made by the depository institution in 
                        default to creditworthy customers, and
                          (ii) not interrupt or terminate 
                        adequately secured loans which are 
                        transferred under subparagraph (A) and 
                        are being repaid by the debtor in 
                        accordance with the terms of the loan 
                        instrument.
          (4) Powers of bridge banks.--Each bridge depository 
        institution chartered under this subsection shall have 
        all corporate powers of, and be subject to the same 
        provisions of law as, a national bank or Federal 
        savings association, as appropriate, except that--
                  (A) the Corporation may--
                          (i) remove the interim directors and 
                        directors of a bridge depository 
                        institution;
                          (ii) fix the compensation of members 
                        of the interim board of directors and 
                        the board of directors and senior 
                        management, as determined by the 
                        Corporation in its discretion, of a 
                        bridge depository institution; and
                          (iii) waive any requirement 
                        established under section 5145, 5146, 
                        5147, 5148, or 5149 of the Revised 
                        Statutes (relating to directors of 
                        national banks) or section 31 of the 
                        Banking Act of 1933 which would 
                        otherwise be applicable with respect to 
                        directors of a bridge depository 
                        institution by operation of paragraph 
                        (2)(B);
                  (B) the Corporation may indemnify the 
                representatives for purposes of paragraph 
                (1)(B) and the interim directors, directors, 
                officers, employees, and agents of a bridge 
                depository institution on such terms as the 
                Corporation determines to be appropriate;
                  (C) no requirement under any provision of law 
                relating to the capital of a national bank 
                shall apply with respect to a bridge depository 
                institution;
                  (D) the Comptroller of the Currency may 
                establish a limitation on the extent to which 
                any person may become indebted to a bridge 
                depository institution without regard to the 
                amount of the bridge depository institution's 
                capital or surplus;
                  (E)(i) the board of directors of a bridge 
                depository institution shall elect a 
                chairperson who may also serve in the position 
                of chief executive officer, except that such 
                person shall not serve either as chairperson or 
                as chief executive officer without the prior 
                approval of the Corporation; and
          (ii) the board of directors of a bridge depository 
        institution may appoint a chief executive officer who 
        is not also the chairperson, except that such person 
        shall not serve as chief executive officer without the 
        prior approval of the Corporation;
                  (F) a bridge depository institution shall not 
                be required to purchase stock of any Federal 
                Reserve bank;
                  (G) the Comptroller of the Currency shall 
                waive any requirement for a fidelity bond with 
                respect to a bridge depository institution at 
                the request of the Corporation;
                  (H) any judicial action to which a bridge 
                depository institution becomes a party by 
                virtue of its acquisition of any assets or 
                assumption of any liabilities of a depository 
                institution in default shall be stayed from 
                further proceedings for a period of up to 45 
                days at the request of the bridge depository 
                institution;
                  (I) no agreement which tends to diminish or 
                defeat the right, title or interest of a bridge 
                depository institution in any asset of an 
                insured depository institution in default 
                acquired by it shall be valid against the 
                bridge depository institution unless such 
                agreement--
                          (i) is in writing,
                          (ii) was executed by such insured 
                        depository institution in default and 
                        the person or persons claiming an 
                        adverse interest thereunder, including 
                        the obligor, contemporaneously with the 
                        acquisition of the asset by such 
                        insured depository institution in 
                        default,
                          (iii) was approved by the board of 
                        directors of such insured depository 
                        institution in default or its loan 
                        committee, which approval shall be 
                        reflected in the minutes of said board 
                        or committee, and
                          (iv) has been, continuously from the 
                        time of its execution, an official 
                        record of such insured depository 
                        institution in default;
                  (J) notwithstanding section 13(e)(2), any 
                agreement relating to an extension of credit 
                between a Federal home loan bank or Federal 
                Reserve bank and any insured depository 
                institution which was executed before the 
                extension of credit by such bank to such 
                depository institution shall be treated as 
                having been executed contemporaneously with 
                such extension of credit for purposes of 
                subparagraph (I); and
                  (K) except with the prior approval of the 
                Corporation, a bridge depository institution 
                may not, in any transaction or series of 
                transactions, issue capital stock or be a party 
                to any merger, consolidation, disposition of 
                assets or liabilities, sale or exchange of 
                capital stock, or similar transaction, or 
                change its charter.
          (5) Capital.--
                  (A) No capital required.--The Corporation 
                shall not be required to--
                          (i) issue any capital stock on behalf 
                        of a bridge depository institution 
                        chartered under this subsection; or
                          (ii) purchase any capital stock of a 
                        bridge depository institution, except 
                        that notwithstanding any other 
                        provision of Federal or State law, the 
                        Corporation may purchase and retain 
                        capital stock of a bridge depository 
                        institution in such amounts and on such 
                        terms as the Corporation, in its 
                        discretion, determines to be 
                        appropriate.
                  (B) Operating funds in lieu of capital.--Upon 
                the organization of a bridge depository 
                institution, and thereafter, as the Board of 
                Directors may, in its discretion, determine to 
                be necessary or advisable, the Corporation may 
                make available to the bridge depository 
                institution, upon such terms and conditions and 
                in such form and amounts as the Corporation may 
                in its discretion determine, funds for the 
                operation of the bridge depository institution 
                in lieu of capital.
                  (C) Authority to issue capital stock.--
                Whenever the Board of Directors determines it 
                is advisable to do so, the Corporation shall 
                cause capital stock of a bridge depository 
                institution to be issued and offered for sale 
                in such amounts and on such terms and 
                conditions as the Corporation may, in its 
                discretion, determine.
                  (D) Capital levels.--A bridge depository 
                institution shall not be considered an 
                undercapitalized depository institution or a 
                critically undercapitalized depository 
                institution for purposes of section 10B(b) of 
                the Federal Reserve Act.
          (6) No federal status.--
                  (A) Agency status.--A bridge depository 
                institution is not an agency, establishment, or 
                instrumentality of the United States.
                  (B) Employee status.--Representatives for 
                purposes of paragraph (1)(B), interim 
                directors, directors, officers, employees, or 
                agents of a bridge depository institution are 
                not, solely by virtue of service in any such 
                capacity, officers or employees of the United 
                States. Any employee of the Corporation or of 
                any Federal instrumentality who serves at the 
                request of the Corporation as a representative 
                for purposes of paragraph (1)(B), interim 
                director, director, officer, employee, or agent 
                of a bridge depository institution shall not--
                          (i) solely by virtue of service in 
                        any such capacity lose any existing 
                        status as an officer or employee of the 
                        United States for purposes of title 5, 
                        United States Code, or any other 
                        provision of law, or
                          (ii) receive any salary or benefits 
                        for service in any such capacity with 
                        respect to a bridge depository 
                        institution in addition to such salary 
                        or benefits as are obtained through 
                        employment with the Corporation or such 
                        Federal instrumentality.
          (7) Assistance authorized.--The Corporation may, in 
        its discretion, provide assistance under section 13(c) 
        to facilitate any transaction described in clause (i), 
        (ii), or (iii) of paragraph (10)(A) with respect to any 
        bridge depository institution in the same manner and to 
        the same extent as such assistance may be provided 
        under such section with respect to an insured 
        depository institution in default, or to facilitate a 
        bridge depository institution's acquisition of any 
        assets or the assumption of any liabilities of an 
        insured depository institution in default.
          (8) Acquisition.--
                  (A) In general.--The responsible agency shall 
                notify the Attorney General of any transaction 
                involving the merger or sale of a bridge 
                depository institution requiring approval under 
                section 18(c) and if a report on competitive 
                factors is requested within 10 days, such 
                transaction may not be consummated before the 
                5th calendar day after the date of approval by 
                the responsible agency with respect thereto. If 
                the responsible agency has found that it must 
                act immediately to prevent the probable failure 
                of 1 of the depository institutions involved, 
                the preceding sentence does not apply and the 
                transaction may be consummated immediately upon 
                approval by the agency.
                  (B) By out-of-state holding company.--Any 
                depository institution, including an out-of-
                State depository institution, or any out-of-
                State depository institution holding company 
                may acquire and retain the capital stock or 
                assets of, or otherwise acquire and retain a 
                bridge depository institution if the bridge 
                depository institution at any time had assets 
                aggregating $500,000,000 or more, as determined 
                by the Corporation on the basis of the bridge 
                depository institution's reports of condition 
                or on the basis of the last available reports 
                of condition of any insured depository 
                institution in default, which institution has 
                been acquired, or whose assets have been 
                acquired, by the bridge depository institution. 
                The acquiring entity may acquire the bridge 
                depository institution only in the same manner 
                and to the same extent as such entity may 
                acquire an insured depository institution in 
                default under section 13(f)(2).
          (9) Duration of bridge depository institution.--
        Subject to paragraphs (11) and (12), the status of a 
        bridge depository institution as such shall terminate 
        at the end of the 2-year period following the date it 
        was granted a charter. The Board of Directors may, in 
        its discretion, extend the status of the bridge 
        depository institution as such for 3 additional 1-year 
        periods.
          (10) Termination of bridge depository institution 
        status.--The status of any bridge depository 
        institution as such shall terminate upon the earliest 
        of--
                  (A) the merger or consolidation of the bridge 
                depository institution with a depository 
                institution that is not a bridge depository 
                institution;
                  (B) at the election of the Corporation, the 
                sale of a majority of the capital stock of the 
                bridge depository institution to an entity 
                other than the Corporation and other than 
                another bridge depository institution;
                  (C) the sale of 80 percent, or more, of the 
                capital stock of the bridge depository 
                institution to an entity other than the 
                Corporation and other than another bridge 
                depository institution;
                  (D) at the election of the Corporation, 
                either the assumption of all or substantially 
                all of the deposits and other liabilities of 
                the bridge depository institution by a 
                depository institution holding company or a 
                depository institution that is not a bridge 
                depository institution, or the acquisition of 
                all or substantially all of the assets of the 
                bridge depository institution by a depository 
                institution holding company, a depository 
                institution that is not a bridge depository 
                institution, or other entity as permitted under 
                applicable law; and
                  (E) the expiration of the period provided in 
                paragraph (9), or the earlier dissolution of 
                the bridge depository institution as provided 
                in paragraph (12).
          (11) Effect of termination events.--
                  (A) Merger or consolidation.--A bridge 
                depository institution that participates in a 
                merger or consolidation as provided in 
                paragraph (10)(A) shall be for all purposes a 
                national bank or a Federal savings association, 
                as the case may be, with all the rights, 
                powers, and privileges thereof, and such merger 
                or consolidation shall be conducted in 
                accordance with, and shall have the effect 
                provided in, the provisions of applicable law.
                  (B) Charter conversion.--Following the sale 
                of a majority of the capital stock of the 
                bridge depository institution as provided in 
                paragraph (10)(B), the Corporation may amend 
                the charter of the bridge depository 
                institution to reflect the termination of the 
                status of the bridge depository institution as 
                such, whereupon the depository institution 
                shall remain a national bank or a Federal 
                savings association, as the case may be,, with 
                all of the rights, powers, and privileges 
                thereof, subject to all laws and regulations 
                applicable thereto.
                  (C) Sale of stock.--Following the sale of 80 
                percent or more of the capital stock of a 
                bridge depository institution as provided in 
                paragraph (10)(C), the depository institution 
                shall remain a national bank or a Federal 
                savings association, as the case may be,, with 
                all of the rights, powers, and privileges 
                thereof, subject to all laws and regulations 
                applicable thereto.
                  (D) Assumption of liabilities and sale of 
                assets.--Following the assumption of all or 
                substantially all of the liabilities of the 
                bridge depository institution, or the sale of 
                all or substantially all of the assets of the 
                bridge depository institution, as provided in 
                paragraph (10)(D), at the election of the 
                Corporation the bridge depository institution 
                may retain its status as such for the period 
                provided in paragraph (9).
                  (E) Effect on holding companies.--A 
                depository institution holding company 
                acquiring a bridge depository institution under 
                section 13(f), paragraph (8)(B) (or any 
                predecessor provision), or both provisions, 
                shall not be impaired or adversely affected by 
                the termination of the status of a bridge 
                depository institution as a result of 
                subparagraph (A), (B), (C), or (D) of paragraph 
                (10), and shall be entitled to the rights and 
                privileges provided in section 13(f).
                  (F) Amendments to charter.--Following the 
                consummation of a transaction described in 
                subparagraph (A), (B), (C), or (D) of paragraph 
                (10), the charter of the resulting institution 
                shall be amended to reflect the termination of 
                bridge depository institution status, if 
                appropriate.
          (12) Dissolution of bridge depository institution.--
                  (A) In general.--Notwithstanding any other 
                provision of State or Federal law, if the 
                bridge depository institution's status as such 
                has not previously been terminated by the 
                occurrence of an event specified in 
                subparagraph (A), (B), (C), or (D) of paragraph 
                (10)--
                          (i) the Board of Directors may, in 
                        its discretion, dissolve a bridge 
                        depository institution in accordance 
                        with this paragraph at any time; and
                          (ii) the Board of Directors shall 
                        promptly commence dissolution 
                        proceedings in accordance with this 
                        paragraph upon the expiration of the 2-
                        year period following the date the 
                        bridge depository institution was 
                        chartered, or any extension thereof, as 
                        provided in paragraph (9).
                  (B) Procedures.--The Comptroller of the 
                Currency shall appoint the Corporation as 
                receiver for a bridge depository institution 
                upon certification by the Board of Directors to 
                the Comptroller of the Currency of its 
                determination to dissolve the bridge depository 
                institution. The Corporation as such receiver 
                shall wind up the affairs of the bridge 
                depository institution in conformity with the 
                provisions of law relating to the liquidation 
                of closed national banks or Federal savings 
                associations, as appropriate. With respect to 
                any such bridge depository institution, the 
                Corporation as such receiver shall have all the 
                rights, powers, and privileges and shall 
                perform the duties related to the exercise of 
                such rights, powers, or privileges granted by 
                law to a receiver of any insured depository 
                institution and notwithstanding any other 
                provision of law in the exercise of such 
                rights, powers, and privileges the Corporation 
                shall not be subject to the direction or 
                supervision of any State agency or other 
                Federal agency.
          (13) Multiple bridge depository institutions.--
        Subject to paragraph (1)(B)(i), the Corporation may, in 
        the Corporation's discretion, organize 2 or more bridge 
        depository institutions under this subsection to assume 
        any deposits of, assume any other liabilities of, and 
        purchase any assets of a single depository institution 
        in default.
  (o) Supervisory Records.--In addition to the requirements of 
section 7(a)(2) to provide to the Corporation copies of reports 
of examination and reports of condition, whenever the 
Corporation has been appointed as receiver for an insured 
depository institution, the appropriate Federal banking agency 
shall make available all supervisory records to the receiver 
which may be used by the receiver in any manner the receiver 
determines to be appropriate.
  (p) Certain Sales of Assets Prohibited.--
          (1) Persons who engaged in improper conduct with, or 
        caused losses to, depository institutions.--The 
        Corporation shall prescribe regulations which, at a 
        minimum, shall prohibit the sale of assets of a failed 
        institution by the Corporation to--
                  (A) any person who--
                          (i) has defaulted, or was a member of 
                        a partnership or an officer or director 
                        of a corporation that has defaulted, on 
                        1 or more obligations the aggregate 
                        amount of which exceed $1,000,000, to 
                        such failed institution;
                          (ii) has been found to have engaged 
                        in fraudulent activity in connection 
                        with any obligation referred to in 
                        clause (i); and
                          (iii) proposes to purchase any such 
                        asset in whole or in part through the 
                        use of the proceeds of a loan or 
                        advance of credit from the Corporation 
                        or from any institution for which the 
                        Corporation has been appointed as 
                        conservator or receiver;
                  (B) any person who participated, as an 
                officer or director of such failed institution 
                or of any affiliate of such institution, in a 
                material way in transactions that resulted in a 
                substantial loss to such failed institution;
                  (C) any person who has been removed from, or 
                prohibited from participating in the affairs 
                of, such failed institution pursuant to any 
                final enforcement action by an appropriate 
                Federal banking agency; or
                  (D) any person who has demonstrated a pattern 
                or practice of defalcation regarding 
                obligations to such failed institution.
          (2) Convicted debtors.--Except as provided in 
        paragraph (3), any person who--
                  (A) has been convicted of an offense under 
                section 215, 656, 657, 1005, 1006, 1007, 1008, 
                1014, 1032, 1341, 1343, or 1344 of title 18, 
                United States Code, or of conspiring to commit 
                such an offense, affecting any insured 
                depository institution for which any 
                conservator or receiver has been appointed; and
                  (B) is in default on any loan or other 
                extension of credit from such insured 
                depository institution which, if not paid, will 
                cause substantial loss to the institution, the 
                Deposit Insurance Fund, or the Corporation,
        may not purchase any asset of such institution from the 
        conservator or receiver.
          (3) Settlement of claims.--Paragraphs (1) and (2) 
        shall not apply to the sale or transfer by the 
        Corporation of any asset of any insured depository 
        institution to any person if the sale or transfer of 
        the asset resolves or settles, or is part of the 
        resolution or settlement, of--
                  (A) 1 or more claims that have been, or could 
                have been, asserted by the Corporation against 
                the person; or
                  (B) obligations owed by the person to any 
                insured depository institution or the 
                Corporation.
          (4) Definition of default.--For purposes of this 
        subsection, the term ``default'' means a failure to 
        comply with the terms of a loan or other obligation to 
        such an extent that the property securing the 
        obligation is foreclosed upon.
  (q) Expedited Procedures for Certain Claims.--
          (1) Time for filing notice of appeal.--The notice of 
        appeal of any order, whether interlocutory or final, 
        entered in any case brought by the Corporation against 
        an insured depository institution's director, officer, 
        employee, agent, attorney, accountant, or appraiser or 
        any other person employed by or providing services to 
        an insured depository institution shall be filed not 
        later than 30 days after the date of entry of the 
        order. The hearing of the appeal shall be held not 
        later than 120 days after the date of the notice of 
        appeal. The appeal shall be decided not later than 180 
        days after the date of the notice of appeal.
          (2) Scheduling.--Consistent with section 1657 of 
        title 18, United States Code, a court of the United 
        States shall expedite the consideration of any case 
        brought by the Corporation against an insured 
        depository institution's director, officer, employee, 
        agent, attorney, accountant, or appraiser or any other 
        person employed by or providing services to an insured 
        depository institution. As far as practicable the court 
        shall give such case priority on its docket.
          (3) Judicial discretion.--The court may modify the 
        schedule and limitations stated in paragraphs (1) and 
        (2) in a particular case, based on a specific finding 
        that the ends of justice that would be served by making 
        such a modification would outweigh the best interest of 
        the public in having the case resolved expeditiously.
  (r) Foreign Investigations.--The Corporation, as conservator 
or receiver of any insured depository institution and for 
purposes of carrying out any power, authority, or duty with 
respect to an insured depository institution--
          (1) may request the assistance of any foreign banking 
        authority and provide assistance to any foreign banking 
        authority in accordance with section 8(v); and
          (2) may each maintain an office to coordinate foreign 
        investigations or investigations on behalf of foreign 
        banking authorities.
  (s) Prohibition on Entering Secrecy Agreements and Protective 
Orders.--The Corporation may not enter into any agreement or 
approve any protective order which prohibits the Corporation 
from disclosing the terms of any settlement of an 
administrative or other action for damages or restitution 
brought by the Corporation in its capacity as conservator or 
receiver for an insured depository institution.
  (t) Agencies May Share Information Without Waiving 
Privilege.--
          (1) In general.--A covered agency, in any capacity, 
        shall not be deemed to have waived any privilege 
        applicable to any information by transferring that 
        information to or permitting that information to be 
        used by--
                  (A) any other covered agency, in any 
                capacity; or
                  (B) any other agency of the Federal 
                Government (as defined in section 6 of title 
                18, United States Code).
          (2) Definitions.--For purposes of this subsection:
                  (A) Covered agency.--The term ``covered 
                agency'' means any of the following:
                          (i) Any Federal banking agency.
                          (ii) The Farm Credit Administration.
                          (iii) The Farm Credit System 
                        Insurance Corporation.
                          (iv) The National Credit Union 
                        Administration.
                          (v) The General Accounting Office.
                          (vi) The [Bureau of Consumer 
                        Financial Protection] Consumer 
                        Financial Protection Bureau.
                          (vii) Federal Housing Finance Agency.
                  (B) Privilege.--The term ``privilege'' 
                includes any work-product, attorney-client, or 
                other privilege recognized under Federal or 
                State law.
          (3) Rule of construction.--Paragraph (1) shall not be 
        construed as implying that any person waives any 
        privilege applicable to any information because 
        paragraph (1) does not apply to the transfer or use of 
        that information.
  (u) Purchase Rights of Tenants.--
          (1) Notice.--Except as provided in paragraph (3), the 
        Corporation may make available for sale a 1- to 4-
        family residence (including a manufactured home) to 
        which the Corporation acquires title only after the 
        Corporation has provided the household residing in the 
        property notice (in writing and mailed to the property) 
        of the availability of such property and the preference 
        afforded such household under paragraph (2).
          (2) Preference.--In selling such a property, the 
        Corporation shall give preference to any bona fide 
        offer made by the household residing in the property, 
        if--
                  (A) such offer is substantially similar in 
                amount to other offers made within such period 
                (or expected by the Corporation to be made 
                within such period);
                  (B) such offer is made during the period 
                beginning upon the Corporation making such 
                property available and of a reasonable 
                duration, as determined by the Corporation 
                based on the normal period for sale of such 
                properties; and
                  (C) the household making the offer complies 
                with any other requirements applicable to 
                purchasers of such property, including any 
                downpayment and credit requirements.
          (3) Exceptions.--Paragraphs (1) and (2) shall not 
        apply to--
                  (A) any residence transferred in connection 
                with the transfer of substantially all of the 
                assets of an insured depository institution for 
                which the Corporation has been appointed 
                conservator or receiver;
                  (B) any eligible single family property (as 
                such term is defined in section 40(p)); or
                  (C) any residence for which the household 
                occupying the residence was the mortgagor under 
                a mortgage on such residence and to which the 
                Corporation acquired title pursuant to default 
                on such mortgage.
  (v) Preference for Sales for Homeless Families.--Subject to 
subsection (u), in selling any real property (other than 
eligible residential property and eligible condominium 
property, as such terms are defined in section 40(p)) to which 
the Corporation acquires title, the Corporation shall give 
preference among offers to purchase the property that will 
result in the same net present value proceeds, to any offer 
that would provide for the property to be used, during the 
remaining useful life of the property, to provide housing or 
shelter for homeless persons (as such term is defined in 
section 103 of the Stewart B. McKinney Homeless Assistance Act) 
or homeless families.
  (w) Preferences for Sales of Certain Commercial Real 
Properties.--
          (1) Authority.--In selling any eligible commercial 
        real properties of the Corporation, the Corporation 
        shall give preference, among offers to purchase the 
        property that will result in the same net present value 
        proceeds, to any offer--
                  (A) that is made by a public agency or 
                nonprofit organization; and
                  (B) under which the purchaser agrees that the 
                property shall be used, during the remaining 
                useful life of the property, for offices and 
                administrative purposes of the purchaser to 
                carry out a program to acquire residential 
                properties to provide (i) homeownership and 
                rental housing opportunities for very-low-, 
                low-, and moderate-income families, or (ii) 
                housing or shelter for homeless persons (as 
                such term is defined in section 103 of the 
                Stewart B. McKinney Homeless Assistance Act) or 
                homeless families.
          (2) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Eligible commercial real property.--The 
                term ``eligible commercial real property'' 
                means any property (i) to which the Corporation 
                acquires title, and (ii) that the Corporation, 
                in the discretion of the Corporation, 
                determines is suitable for use for the location 
                of offices or other administrative functions 
                involved with carrying out a program referred 
                to in paragraph (1)(B).
                  (B) Nonprofit organization and public 
                agency.--The terms ``nonprofit organization'' 
                and ``public agency'' have the same meanings as 
                in section 40(p).

           *       *       *       *       *       *       *

  Sec. 18. (a) Representations of Deposit Insurance.--
          (1) Insured depository institutions.--
                  (A) In general.--Each insured depository 
                institution shall display at each place of 
                business maintained by that institution a sign 
                or signs relating to the insurance of the 
                deposits of the institution, in accordance with 
                regulations to be prescribed by the 
                Corporation.
                  (B) Statement to be included.--Each sign 
                required under subparagraph (A) shall include a 
                statement that insured deposits are backed by 
                the full faith and credit of the United States 
                Government.
          (2) Regulations.--The Corporation shall prescribe 
        regulations to carry out this subsection, including 
        regulations governing the substance of signs required 
        by paragraph (1) and the manner of display or use of 
        such signs.
          (3) Penalties.--For each day that an insured 
        depository institution continues to violate paragraph 
        (1) or any regulation issued under paragraph (2), it 
        shall be subject to a penalty of not more than $100, 
        which the Corporation may recover for its use.
          (4) False advertising, misuse of fdic names, and 
        misrepresentation to indicate insured status.--
                  (A) Prohibition on false advertising and 
                misuse of fdic names.--No person may represent 
                or imply that any deposit liability, 
                obligation, certificate, or share is insured or 
                guaranteed by the Corporation, if such deposit 
                liability, obligation, certificate, or share is 
                not insured or guaranteed by the Corporation--
                          (i) by using the terms ``Federal 
                        Deposit'', ``Federal Deposit 
                        Insurance'', ``Federal Deposit 
                        Insurance Corporation'', any 
                        combination of such terms, or the 
                        abbreviation ``FDIC'' as part of the 
                        business name or firm name of any 
                        person, including any corporation, 
                        partnership, business trust, 
                        association, or other business entity; 
                        or
                          (ii) by using such terms or any other 
                        terms, sign, or symbol as part of an 
                        advertisement, solicitation, or other 
                        document.
                  (B) Prohibition on misrepresentations of 
                insured status.--No person may knowingly 
                misrepresent--
                          (i) that any deposit liability, 
                        obligation, certificate, or share is 
                        insured, under this Act, if such 
                        deposit liability, obligation, 
                        certificate, or share is not so 
                        insured; or
                          (ii) the extent to which or the 
                        manner in which any deposit liability, 
                        obligation, certificate, or share is 
                        insured under this Act, if such deposit 
                        liability, obligation, certificate, or 
                        share is not so insured, to the extent 
                        or in the manner represented.
                  (C) Authority of the appropriate federal 
                banking agency.--The appropriate Federal 
                banking agency shall have enforcement authority 
                in the case of a violation of this paragraph by 
                any person for which the agency is the 
                appropriate Federal banking agency, or any 
                institution-affiliated party thereof.
                  (D) Corporation authority if the appropriate 
                federal banking agency fails to follow 
                recommendation.--
                          (i) Recommendation.--The Corporation 
                        may recommend in writing to the 
                        appropriate Federal banking agency that 
                        the agency take any enforcement action 
                        authorized under section 8 for purposes 
                        of enforcement of this paragraph with 
                        respect to any person for which the 
                        agency is the appropriate Federal 
                        banking agency or any institution-
                        affiliated party thereof.
                          (ii) Agency response.--If the 
                        appropriate Federal banking agency does 
                        not, within 30 days of the date of 
                        receipt of a recommendation under 
                        clause (i), take the enforcement action 
                        with respect to this paragraph 
                        recommended by the Corporation or 
                        provide a plan acceptable to the 
                        Corporation for responding to the 
                        situation presented, the Corporation 
                        may take the recommended enforcement 
                        action against such person or 
                        institution-affiliated party.
                  (E) Additional authority.--In addition to its 
                authority under subparagraphs (C) and (D), for 
                purposes of this paragraph, the Corporation 
                shall have, in the same manner and to the same 
                extent as with respect to a State nonmember 
                insured bank--
                          (i) jurisdiction over--
                                  (I) any person other than a 
                                person for which another agency 
                                is the appropriate Federal 
                                banking agency or any 
                                institution-affiliated party 
                                thereof; and
                                  (II) any person that aids or 
                                abets a violation of this 
                                paragraph by a person described 
                                in subclause (I); and
                          (ii) for purposes of enforcing the 
                        requirements of this paragraph, the 
                        authority of the Corporation under--
                                  (I) section 10(c) to conduct 
                                investigations; and
                                  (II) subsections (b), (c), 
                                (d) and (i) of section 8 to 
                                conduct enforcement actions.
                  (F) Other actions preserved.--No provision of 
                this paragraph shall be construed as barring 
                any action otherwise available, under the laws 
                of the United States or any State, to any 
                Federal or State agency or individual.
  (b) No insured depository institution shall pay any dividends 
on its capital stock or interest on its capital notes or 
debentures (if such interest is required to be paid only out of 
net profits) or distribute any of its capital assets while it 
remains in default in the payment of any assessment due to the 
Corporation; and any director or officer of any insured 
depository institution who participates in the declaration or 
payment of any such dividend or interest or in any such 
distribution shall, upon conviction, be fined not more than 
$1,000 or imprisoned not more than one year, or both: Provided, 
That, if such default is due to a dispute between the insured 
depository institution and the Corporation over the amount of 
such assessment, this subsection shall not apply if the insured 
depository institution deposits security satisfactory to the 
Corporation for payment upon final determination of the issue.
  (c)(1) Except with the prior written approval of the 
responsible agency, which shall in every case referred to in 
this paragraph be the Corporation, no insured depository 
institution shall--
          (A) merge or consolidate with any noninsured bank or 
        institution;
          (B) assume liability to pay any deposits (including 
        liabilities which would be ``deposits'' except for the 
        proviso in section 3(l)(5) of this Act) made in, or 
        similar liabilities of, any noninsured bank or 
        institution; or
          (C) transfer assets to any noninsured bank or 
        institution in consideration of the assumption of 
        liabilities for any portion of the deposits made in 
        such insured depository institution.
  (2) No insured depository institution shall merge or 
consolidate with any other insured depository institution or, 
either directly or indirectly, acquire the assets of, or assume 
liability to pay any deposits made in, any other insured 
depository institution except with the prior written approval 
of the responsible agency, which shall be--
          (A) the Comptroller of the Currency if the acquiring, 
        assuming, or resulting bank is to be a national bank or 
        a Federal savings association;
          (B) the Board of Governors of the Federal Reserve 
        System if the acquiring, assuming, or resulting bank is 
        to be a State member bank; and
          (C) the Corporation if the acquiring, assuming, or 
        resulting bank is to be a State nonmember insured bank 
        or a State savings association.
  (3) Notice of any proposed transaction for which approval is 
required under paragraph (1) or (2) (referred to hereafter in 
this subsection as a ``merger transaction'') shall, unless the 
responsible agency finds that it must act immediately in order 
to prevent the probable default of one of the banks or savings 
associations involved, be published--
          (A) prior to the granting of approval of such 
        transaction,
          (B) in a form approved by the responsible agency,
          (C) at appropriate intervals during a period at least 
        as long as the period allowed for furnishing reports 
        under paragraph (4) of this subsection, and
          (D) in a newspaper of general circulation in the 
        community or communities where the main offices of the 
        banks or savings associations involved are located, or, 
        if there is no such newspaper in any such community, 
        then in the newspaper of general circulation published 
        nearest thereto.
          (4) Reports on competitive factors.--
                  (A) Request for report.--In the interests of 
                uniform standards and subject to subparagraph 
                (B), before acting on any application for 
                approval of a merger transaction, the 
                responsible agency shall--
                          (i) request a report on the 
                        competitive factors involved from the 
                        Attorney General of the United States; 
                        and
                          (ii) provide a copy of the request to 
                        the Corporation (when the Corporation 
                        is not the responsible agency).
                  (B) Furnishing of report.--The report 
                requested under subparagraph (A) shall be 
                furnished by the Attorney General to the 
                responsible agency--
                          (i) not later than 30 calendar days 
                        after the date on which the Attorney 
                        General received the request; or
                          (ii) not later than 10 calendar days 
                        after such date, if the requesting 
                        agency advises the Attorney General 
                        that an emergency exists requiring 
                        expeditious action.
                  (C) Exceptions.--A responsible agency may not 
                be required to request a report under 
                subparagraph (A) if--
                          (i) the responsible agency finds that 
                        it must act immediately in order to 
                        prevent the probable failure of 1 of 
                        the insured depository institutions 
                        involved in the merger transaction; or
                          (ii) the merger transaction involves 
                        solely an insured depository 
                        institution and 1 or more of the 
                        affiliates of such depository 
                        institution.
  (5) The responsible agency shall not approve--
          (A) any proposed merger transaction which would 
        result in a monopoly, or which would be in furtherance 
        of any combination or conspiracy to monopolize or to 
        attempt to monopolize the business of banking in any 
        part of the United States, or
          (B) any other proposed merger transaction whose 
        effect in any section of the country may be 
        substantially to lessen competition, or to tend to 
        create a monopoly, or which in any other manner would 
        be in restraint of trade, unless it finds that the 
        anticompetitive effects of the proposed transaction are 
        clearly outweighed in the public interest by the 
        probable effect of the transaction in meeting the 
        convenience and needs of the community to be served.
In every case, the responsible agency shall take into 
consideration the financial and managerial resources and future 
prospects of the existing and proposed institutions, the 
convenience and needs of the community to be served, and the 
risk to the stability of the United States banking or financial 
system.
  (6) The responsible agency shall immediately notify the 
Attorney General of any approval by it pursuant to this 
subsection of a proposed merger transaction. If the agency has 
found that it must act immediately to prevent the probable 
failure of one of the insured depository institutions involved, 
or if the proposed merger transaction is solely between an 
insured depository institution and 1 or more of its affiliates, 
and the report on the competitive factors has been dispensed 
with, the transaction may be consummated immediately upon 
approval by the agency. If the agency has advised the Attorney 
General under paragraph (4)(B)(ii) of the existence of an 
emergency requiring expeditious action and has requested a 
report on the competitive factors within 10 days, the 
transaction may not be consummated before the fifth calendar 
day after the date of approval by the agency. In all other 
cases, the transaction may not be consummated before the 
thirtieth calendar day after the date of approval by the agency 
or, if the agency has not received any adverse comment from the 
Attorney General of the United States relating to competitive 
factors, such shorter period of time as may be prescribed by 
the agency with the concurrence of the Attorney General, but in 
no event less than 15 calendar days after the date of approval.
  (7)(A) Any action brought under the antitrust laws arising 
out of a merger transaction shall be commenced prior to the 
earliest time under paragraph (6) at which a merger transaction 
approved under paragraph (5) might be consummated. The 
commencement of such an action shall stay the effectiveness of 
the agency's approval unless the court shall otherwise 
specifically order. In any such action, the court shall review 
de novo the issues presented.
  (B) In any judicial proceeding attacking a merger transaction 
approved under paragraph (5) on the ground that the merger 
transaction alone and of itself constituted a violation of any 
antitrust laws other than section 2 of the Act of July 2, 1890 
(section 2 of the Sherman Antitrust Act, 15 U.S.C. 2), the 
standards applied by the court shall be identical with those 
that the banking agencies are directed to apply under paragraph 
(5).
  (C) Upon the consummation of a merger transaction in 
compliance with this subsection and after the termination of 
any antitrust litigation commenced within the period prescribed 
in this paragraph, or upon the termination of such period if no 
such litigation is commenced therein, the transaction may not 
thereafter be attacked in any judicial proceeding on the ground 
that it alone and of itself constituted a violation of any 
antitrust laws other than section 2 of the Act of July 2, 1890 
(section 2 of the Sherman Antitrust Act, 15 U.S.C. 2), but 
nothing in this subsection shall exempt any bank or savings 
association resulting from a merger transaction from complying 
with the antitrust laws after the consummation of such 
transaction.
  (D) In any action brought under the antitrust laws arising 
out of a merger transaction approved by a Federal supervisory 
agency pursuant to this subsection, such agency, and any State 
banking supervisory agency having jurisdiction within the State 
involved, may appear as a party of its own motion and as of 
right, and be represented by its counsel.
  (8) For the purposes of this subsection, the term ``antitrust 
laws'' means the Act of July 2, 1890 (the Sherman Antitrust 
Act, 15 U.S.C. 1-7), the Act of October 15, 1914 (the Clayton 
Act, 15 U.S.C. 12-27), and any other Acts in pari materia.
  (9) Each of the responsible agencies shall include in its 
annual report to the Congress a description of each merger 
transaction approved by it during the period covered by the 
report, along with--
          (A) the name and total resources of each bank or 
        savings association involved;
          (B) whether a report was submitted by the Attorney 
        General under paragraph (4), and, if so, a summary by 
        the Attorney General of the substance of such report; 
        and
          (C) a statement by the responsible agency of the 
        basis for its approval.
  (10) Until June 30, 1976, the responsible agency shall not 
grant any approval required by law which has the practical 
effect of permitting a conversion from the mutual to the stock 
form of organization, including approval of any application 
pending on the date of enactment of this subsection, except 
that this sentence shall not be deemed to limit now or 
hereafter the authority of the responsible agency to grant 
approvals in cases where the responsible agency finds that it 
must act in order to maintain the safety, soundness, and 
stability of an insured depository institution. The responsible 
agency may by rule, regulation, or otherwise and under such 
civil penalties (which shall be cumulative to any other 
remedies) as it may prescribe take whatever action it deems 
necessary or appropriate to implement or enforce this 
subsection.
          (11) Money laundering.--In every case, the 
        responsible agency, shall take into consideration the 
        effectiveness of any insured depository institution 
        involved in the proposed merger transaction in 
        combatting money laundering activities, including in 
        overseas branches.
  (12) The provisions of this subsection do not apply to any 
merger transaction involving a foreign bank if no party to the 
transaction is principally engaged in business in the United 
States.
  (13)(A) Except as provided in subparagraph (B), the 
responsible agency may not approve an application for an 
interstate merger transaction if the resulting insured 
depository institution (including all insured depository 
institutions which are affiliates of the resulting insured 
depository institution), upon consummation of the transaction, 
would control more than 10 percent of the total amount of 
deposits of insured depository institutions in the United 
States.
  (B) Subparagraph (A) shall not apply to an interstate merger 
transaction that involves 1 or more insured depository 
institutions in default or in danger of default, or with 
respect to which the Corporation provides assistance under 
section 13.
  (C) In this paragraph--
          (i) the term ``interstate merger transaction'' means 
        a merger transaction involving 2 or more insured 
        depository institutions that have different home States 
        and that are not affiliates; and
          (ii) the term ``home State'' means--
                  (I) with respect to a national bank, the 
                State in which the main office of the bank is 
                located;
                  (II) with respect to a State bank or State 
                savings association, the State by which the 
                State bank or State savings association is 
                chartered; and
                  (III) with respect to a Federal savings 
                association, the State in which the home office 
                (as defined by the regulations of the Director 
                of the Office of Thrift Supervision, or, on and 
                after the transfer date, the Comptroller of the 
                Currency) of the Federal savings association is 
                located.
  (d)(1) No State nonmember insured bank shall establish and 
operate any new domestic branch unless it shall have the prior 
written consent of the Corporation, and no State nonmember 
insured bank shall move its main office or any such branch from 
one location to another without such consent. No foreign bank 
may move any insured branch from one location to another 
without such consent. The factors to be considered in granting 
or withholding the consent of the Corporation under this 
subsection shall be those enumerated in section 6 of this Act.
  (2) No State nonmember insured bank shall establish or 
operate any foreign branch, except with the prior written 
consent of the Corporation and upon such conditions and 
pursuant to such regulations as the Corporation may prescribe 
from time to time.
          (3) Exclusive authority for additional branches.--
                  (A) In general.--Effective June 1, 1997, a 
                State nonmember bank may not acquire, 
                establish, or operate a branch in any State 
                other than the bank's home State (as defined in 
                section 44(f)(4)) or a State in which the bank 
                already has a branch unless the acquisition, 
                establishment, or operation of a branch in such 
                State by a State nonmember bank is authorized 
                under this subsection or section 13(f), 13(k), 
                or 44.
                  (B) Retention of branches.--In the case of a 
                State nonmember bank which relocates the main 
                office of such bank from 1 State to another 
                State after May 31, 1997, the bank may retain 
                and operate branches within the State which was 
                the bank's home State (as defined in section 
                44(f)(4)) before the relocation of such office 
                only to the extent the bank would be 
                authorized, under this section or any other 
                provision of law referred to in subparagraph 
                (A), to acquire, establish, or commence to 
                operate a branch in such State if--
                          (i) the bank had no branches in such 
                        State; or
                          (ii) the branch resulted from--
                                  (I) an interstate merger 
                                transaction approved pursuant 
                                to section 44; or
                                  (II) a transaction after May 
                                31, 1997, pursuant to which the 
                                bank received assistance from 
                                the Corporation under section 
                                13(c).
          (4) State ``opt-in'' election to permit interstate 
        branching through de novo branches.--
                  (A) In general.--Subject to subparagraph (B), 
                the Corporation may approve an application by 
                an insured State nonmember bank to establish 
                and operate a de novo branch in a State (other 
                than the bank's home State) in which the bank 
                does not maintain a branch if--
                          (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
                          (ii) the conditions established in, 
                        or made applicable to this paragraph 
                        by, subparagraph (B) are met.
                  (B) Conditions on establishment and operation 
                of interstate branch.--
                          (i) Establishment.--An application by 
                        an insured State nonmember bank to 
                        establish and operate a de novo branch 
                        in a host State shall be subject to the 
                        same requirements and conditions to 
                        which an application for a merger 
                        transaction is subject under paragraphs 
                        (1), (3), and (4) of section 44(b).
                          (ii) Operation.--Subsections (c) and 
                        (d)(2) of section 44 shall apply with 
                        respect to each branch of an insured 
                        State nonmember bank which is 
                        established and operated pursuant to an 
                        application approved under this 
                        paragraph in the same manner and to the 
                        same extent such provisions of such 
                        section apply to a branch of a State 
                        bank which resulted from a merger 
                        transaction under such section 44.
                  (C) De novo branch defined.--For purposes of 
                this paragraph, the term ``de novo branch'' 
                means a branch of a State bank which--
                          (i) is originally established by the 
                        State bank as a branch; and
                          (ii) does not become a branch of such 
                        bank as a result of--
                                  (I) the acquisition by the 
                                bank of an insured depository 
                                institution or a branch of an 
                                insured depository institution; 
                                or
                                  (II) the conversion, merger, 
                                or consolidation of any such 
                                institution or branch.
                  (D) Home state defined.--The term ``home 
                State'' means the State by which a State bank 
                is chartered.
                  (E) Host state defined.--The term ``host 
                State'' means, with respect to a bank, a State, 
                other than the home State of the bank, in which 
                the bank maintains, or seeks to establish and 
                maintain, a branch.
  (e) The Corporation may require any insured depository 
institution to provide protection and indemnity against 
burglary, defalcation, and other similar insurable losses. 
Whenever any insured depository institution refuses to comply 
with any such requirement the Corporation may contract for such 
protection and indemnity and add the cost thereof to the 
assessment otherwise payable by such bank.
  (f) Whenever any insured depository institution (except a 
national bank), after written notice of the recommendations of 
the Corporation based on a report of examination of such 
insured depository institution by an examiner of the 
Corporation, shall fail to comply with such recommendations 
within one hundred and twenty days after such notice, the 
Corporation shall have the power, and is hereby authorized, to 
publish only such part of such report of examination as relates 
to any recommendation not complied with: Provided, That notice 
of intention to make such publication shall be given to the 
insured depository institution at least ninety days before such 
publication is made.
  (h) Penalty for Failure to Timely Pay Assessments.--
          (1) In general.--Subject to paragraph (3), any 
        insured depository institution which fails or refuses 
        to pay any assessment shall be subject to a penalty in 
        an amount of not more than 1 percent of the amount of 
        the assessment due for each day that such violation 
        continues.
          (2) Exception in case of dispute.--Paragraph (1) 
        shall not apply if--
                  (A) the failure to pay an assessment is due 
                to a dispute between the insured depository 
                institution and the Corporation over the amount 
                of such assessment; and
                  (B) the insured depository institution 
                deposits security satisfactory to the 
                Corporation for payment upon final 
                determination of the issue.
          (3) Special rule for small assessment amounts.--If 
        the amount of the assessment which an insured 
        depository institution fails or refuses to pay is less 
        than $10,000 at the time of such failure or refusal, 
        the amount of any penalty to which such institution is 
        subject under paragraph (1) shall not exceed $100 for 
        each day that such violation continues.
          (4) Authority to modify or remit penalty.--The 
        Corporation, in the sole discretion of the Corporation, 
        may compromise, modify or remit any penalty which the 
        Corporation may assess or has already assessed under 
        paragraph (1) upon a finding that good cause prevented 
        the timely payment of an assessment.
  (i)(1) No insured State nonmember bank shall, without the 
prior consent of the Corporation, reduce the amount or retire 
any part of its common or preferred capital stock, or retire 
any part of its capital notes or debentures.
  (2) No insured Federal depository institution shall convert 
into an insured State depository institution if its capital 
stock or its surplus will be less than the capital stock or 
surplus, respectively, of the converting bank at the time of 
the shareholder's meeting approving such conversion, without 
the prior written consent of--
          (A) the Board of Governors of the Federal Reserve 
        System if the resulting bank is to be a State member 
        bank;
          (B) the Corporation if the resulting bank is to be a 
        State nonmember insured bank; and
          (C) the Corporation if the resulting institution is 
        to be an insured State savings association.
  (3) Without the prior written consent of the Corporation, no 
insured depository institution shall convert into a noninsured 
bank or institution.
  (4) In granting or withholding consent under this subsection, 
the responsible agency shall consider--
          (A) the financial history and condition of the bank,
          (B) the adequacy of its capital structure,
          (C) its future earnings prospects,
          (D) the general character and fitness of its 
        management,
          (E) the convenience and needs of the community to be 
        served, and
          (F) whether or not its corporate powers are 
        consistent with the purposes of this Act.
  (j) Restrictions on Transactions With Affiliates and 
Insiders.--
          (1) Transactions with affiliates.--
                  (A) In general.--Sections 23A and 23B of the 
                Federal Reserve Act shall apply with respect to 
                every nonmember insured bank in the same manner 
                and to the same extent as if the nonmember 
                insured bank were a member bank.
                  (B) Affiliate defined.--For the purpose of 
                subparagraph (A), any company that would be an 
                affiliate (as defined in sections 23A and 23B) 
                of a nonmember insured bank if the nonmember 
                insured bank were a member bank shall be deemed 
                to be an affiliate of that nonmember insured 
                bank.
          (2) Extensions of credit to officers, directors, and 
        principal shareholders.--Subsections (g) and (h) of 
        section 22 of the Federal Reserve Act shall apply with 
        respect to every nonmember insured bank in the same 
        manner and to the same extent as if the nonmember 
        insured bank were a member bank.
          (3) Avoiding extraterritorial application to foreign 
        banks.--
                  (A) Transactions with affiliates.--Paragraph 
                (1) shall not apply with respect to a foreign 
                bank solely because the foreign bank has an 
                insured branch.
                  (B) Extensions of credit to officers, 
                directors, and principal shareholders.--
                Paragraph (2) shall not apply with respect to a 
                foreign bank solely because the foreign bank 
                has an insured branch, but shall apply with 
                respect to the insured branch.
                  (C) Foreign bank defined.--For purposes of 
                this paragraph, the term ``foreign bank'' has 
                the same meaning as in section 1(b)(7) of the 
                International Banking Act of 1978.
  (k) Authority To Regulate or Prohibit Certain Forms of 
Benefits to Institution-Affiliated Parties.--
          (1) Golden parachutes and indemnification payments.--
        The Corporation may prohibit or limit, by regulation or 
        order, any golden parachute payment or indemnification 
        payment.
          (2) Factors to be taken into account.--The 
        Corporation shall prescribe, by regulation, the factors 
        to be considered by the Corporation in taking any 
        action pursuant to paragraph (1) which may include such 
        factors as the following:
                  (A) Whether there is a reasonable basis to 
                believe that the institution-affiliated party 
                has committed any fraudulent act or omission, 
                breach of trust or fiduciary duty, or insider 
                abuse with regard to the depository institution 
                or covered company that has had a material 
                affect on the financial condition of the 
                institution.
                  (B) Whether there is a reasonable basis to 
                believe that the institution-affiliated party 
                is substantially responsible for--
                          (i) the insolvency of the depository 
                        institution or covered company;
                          (ii) the appointment of a conservator 
                        or receiver for the depository 
                        institution; or
                          (iii) the troubled condition of the 
                        depository institution (as defined in 
                        the regulations prescribed pursuant to 
                        section 32(f)).
                  (C) Whether there is a reasonable basis to 
                believe that the institution-affiliated party 
                has materially violated any applicable Federal 
                or State banking law or regulation that has had 
                a material affect on the financial condition of 
                the institution.
                  (D) Whether there is a reasonable basis to 
                believe that the institution-affiliated party 
                has violated or conspired to violate--
                          (i) section 215, 656, 657, 1005, 
                        1006, 1007, 1014, 1032, or 1344 of 
                        title 18, United States Code; or
                          (ii) section 1341 or 1343 of such 
                        title affecting a federally insured 
                        financial institution.
                  (E) Whether the institution-affiliated party 
                was in a position of managerial or fiduciary 
                responsibility.
                  (F) The length of time the party was 
                affiliated with the insured depository 
                institution or covered company, and the degree 
                to which--
                          (i) the payment reasonably reflects 
                        compensation earned over the period of 
                        employment; and
                          (ii) the compensation involved 
                        represents a reasonable payment for 
                        services rendered.
          (3) Certain payments prohibited.--No insured 
        depository institution or covered company may prepay 
        the salary or any liability or legal expense of any 
        institution-affiliated party if such payment is made--
                  (A) in contemplation of the insolvency of 
                such institution or covered company or after 
                the commission of an act of insolvency; and
                  (B) with a view to, or has the result of--
                          (i) preventing the proper application 
                        of the assets of the institution to 
                        creditors; or
                          (ii) preferring one creditor over 
                        another.
          (4) Golden parachute payment defined.--For purposes 
        of this subsection--
                  (A) In general.--The term ``golden parachute 
                payment'' means any payment (or any agreement 
                to make any payment) in the nature of 
                compensation by any insured depository 
                institution or covered company for the benefit 
                of any institution-affiliated party pursuant to 
                an obligation of such institution or covered 
                company that--
                          (i) is contingent on the termination 
                        of such party's affiliation with the 
                        institution or covered company; and
                          (ii) is received on or after the date 
                        on which--
                                  (I) the insured depository 
                                institution or covered company, 
                                or any insured depository 
                                institution subsidiary of such 
                                covered company, is insolvent;
                                  (II) any conservator or 
                                receiver is appointed for such 
                                institution;
                                  (III) the institution's 
                                appropriate Federal banking 
                                agency determines that the 
                                insured depository institution 
                                is in a troubled condition (as 
                                defined in the regulations 
                                prescribed pursuant to section 
                                32(f));
                                  (IV) the insured depository 
                                institution has been assigned a 
                                composite rating by the 
                                appropriate Federal banking 
                                agency or the Corporation of 4 
                                or 5 under the Uniform 
                                Financial Institutions Rating 
                                System; or
                                  (V) the insured depository 
                                institution is subject to a 
                                proceeding initiated by the 
                                Corporation to terminate or 
                                suspend deposit insurance for 
                                such institution.
                  (B) Certain payments in contemplation of an 
                event.--Any payment which would be a golden 
                parachute payment but for the fact that such 
                payment was made before the date referred to in 
                subparagraph (A)(ii) shall be treated as a 
                golden parachute payment if the payment was 
                made in contemplation of the occurrence of an 
                event described in any subclause of such 
                subparagraph.
                  (C) Certain payments not included.--The term 
                ``golden parachute payment'' shall not 
                include--
                          (i) any payment made pursuant to a 
                        retirement plan which is qualified (or 
                        is intended to be qualified) under 
                        section 401 of the Internal Revenue 
                        Code of 1986 or other nondiscriminatory 
                        benefit plan;
                          (ii) any payment made pursuant to a 
                        bona fide deferred compensation plan or 
                        arrangement which the Board determines, 
                        by regulation or order, to be 
                        permissible; or
                          (iii) any payment made by reason of 
                        the death or disability of an 
                        institution-affiliated party.
          (5) Other definitions.--For purposes of this 
        subsection--
                  (A) Indemnification payment.--Subject to 
                paragraph (6), the term ``indemnification 
                payment'' means any payment (or any agreement 
                to make any payment) by any insured depository 
                institution or covered company for the benefit 
                of any person who is or was an institution-
                affiliated party, to pay or reimburse such 
                person for any liability or legal expense with 
                regard to any administrative proceeding or 
                civil action instituted by the appropriate 
                Federal banking agency which results in a final 
                order under which such person--
                          (i) is assessed a civil money 
                        penalty;
                          (ii) is removed or prohibited from 
                        participating in conduct of the affairs 
                        of the insured depository institution; 
                        or
                          (iii) is required to take any 
                        affirmative action described in section 
                        8(b)(6) with respect to such 
                        institution.
                  (B) Liability or legal expense.--The term 
                ``liability or legal expense'' means--
                          (i) any legal or other professional 
                        expense incurred in connection with any 
                        claim, proceeding, or action;
                          (ii) the amount of, and any cost 
                        incurred in connection with, any 
                        settlement of any claim, proceeding, or 
                        action; and
                          (iii) the amount of, and any cost 
                        incurred in connection with, any 
                        judgment or penalty imposed with 
                        respect to any claim, proceeding, or 
                        action.
                  (C) Payment.--The term ``payment'' includes--
                          (i) any direct or indirect transfer 
                        of any funds or any asset; and
                          (ii) any segregation of any funds or 
                        assets for the purpose of making, or 
                        pursuant to an agreement to make, any 
                        payment after the date on which such 
                        funds or assets are segregated, without 
                        regard to whether the obligation to 
                        make such payment is contingent on--
                                  (I) the determination, after 
                                such date, of the liability for 
                                the payment of such amount; or
                                  (II) the liquidation, after 
                                such date, of the amount of 
                                such payment.
                  (D) Covered company.--The term ``covered 
                company'' means any depository institution 
                holding company (including any company required 
                to file a report under section 4(f)(6) of the 
                Bank Holding Company Act of 1956), or any other 
                company that controls an insured depository 
                institution.
          (6) Certain commercial insurance coverage not treated 
        as covered benefit payment.--No provision of this 
        subsection shall be construed as prohibiting any 
        insured depository institution or covered company, from 
        purchasing any commercial insurance policy or fidelity 
        bond, except that, subject to any requirement described 
        in paragraph (5)(A)(iii), such insurance policy or bond 
        shall not cover any legal or liability expense of the 
        institution or covered company which is described in 
        paragraph (5)(A).
  (l) When authorized by State law, a State nonmember insured 
bank may, but only with the prior written consent of the 
Corporation and upon such conditions and under such regulations 
as the Corporation may prescribe from time to time, acquire and 
hold, directly or indirectly, stock or other evidences of 
ownership in one or more banks or other entities organized 
under the law of a foreign country or a dependency or insular 
possession of the United States and not engaged, directly or 
indirectly, in any activity in the United States except as, in 
the judgment of the Board of Directors, shall be incidental to 
the international or foreign business of such foreign bank or 
entity; and, notwithstanding the provisions of subsection (j) 
of this section, such State nonmember insured bank may, as to 
such foreign bank or entity, engage in transactions that would 
otherwise be covered thereby, but only in the manner and within 
the limit prescribed by the Corporation by general or specific 
regulation or ruling.
  (m) Activities of Savings Associations and Their 
Subsidiaries.--
          (1) Procedures.--When an insured savings association 
        establishes or acquires a subsidiary or when an insured 
        savings association elects to conduct any new activity 
        through a subsidiary that the insured savings 
        association controls, the insured savings association--
                  (A) shall notify the Corporation or the 
                Comptroller of the Currency, as appropriate, 
                not less than 30 days prior to the 
                establishment, or acquisition, of any such 
                subsidiary, and not less than 30 days prior to 
                the commencement of any such activity, and in 
                either case shall provide at that time such 
                information as each such agency may, by 
                regulation, require; and
                  (B) shall conduct the activities of the 
                subsidiary in accordance with regulations of 
                the Comptroller of the Currency and orders of 
                the Corporation and the Comptroller of the 
                Currency.
          (2) Enforcement powers.--With respect to any 
        subsidiary of an insured savings association:
                  (A) the Corporation and the Comptroller of 
                the Currency, as appropriate, shall each have, 
                with respect to such subsidiary, the respective 
                powers that each has with respect to the 
                insured savings association pursuant to this 
                section or section 8; and
                  (B) the Corporation or the Comptroller of the 
                Currency, as appropriate, may determine, after 
                notice and opportunity for hearing, that the 
                continuation by the insured savings association 
                of its ownership or control of, or its 
                relationship to, the subsidiary--
                          (i) constitutes a serious risk to the 
                        safety, soundness, or stability of the 
                        insured savings association, or
                          (ii) is inconsistent with sound 
                        banking principles or with the purposes 
                        of this Act.
                Upon making any such determination, the 
                Corporation or the Office of the Comptroller of 
                the Currency, as appropriate, shall have 
                authority to order the insured savings 
                association to divest itself of control of the 
                subsidiary. The Corporation or the Comptroller 
                of the Currency, as appropriate, may take any 
                other corrective measures with respect to the 
                subsidiary, including the authority to require 
                the subsidiary to terminate the activities or 
                operations posing such risks, as the 
                Corporation or the Comptroller of the Currency, 
                respectively, may deem appropriate.
          (3) Activities incompatible with deposit insurance.--
                  (A) In general.--The Corporation may 
                determine by regulation or order that any 
                specific activity poses a serious threat to the 
                Deposit Insurance Fund. Prior to adopting any 
                such regulation, the Corporation shall, in the 
                case of a Federal savings association, consult 
                with the Comptroller of the Currency and shall 
                provide appropriate State supervisors the 
                opportunity to comment thereon, and the 
                Corporation shall specifically take such 
                comments into consideration. Any such 
                regulation shall be issued in accordance with 
                section 553 of title 5, United States Code. If 
                the Board of Directors makes such a 
                determination with respect to an activity, the 
                Corporation shall have authority to order that 
                no savings association may engage in the 
                activity directly.
                  (B) Authority of comptroller of the 
                currency.--This section does not limit the 
                authority of the Comptroller of the Currency to 
                issue regulations to promote safety and 
                soundness, or to enforce compliance as to 
                Federal savings associations with other 
                applicable laws.
                  (C) Additional authority of fdic to prevent 
                serious risks to insurance fund.--
                Notwithstanding subparagraph (A), the 
                Corporation may prescribe and enforce such 
                regulations and issue such orders as the 
                Corporation determines to be necessary to 
                prevent actions or practices of savings 
                associations that pose a serious threat to the 
                Deposit Insurance Fund.
          (4) ``Subsidiary'' defined.--As used in this 
        subsection, the term ``subsidiary'' does not include an 
        insured depository institution.
          (5) Applicability to certain savings banks.--
        Subparagraphs (A) and (B) of paragraph (1) of this 
        subsection do not apply to--
                  (A) any Federal savings bank that was 
                chartered prior to October 15, 1982, as a 
                savings bank under State law, or
                  (B) a savings association that acquired its 
                principal assets from an institution that was 
                chartered prior to October 15, 1982, as a 
                savings bank under State law.
  (n) Calculation of Capital.--No appropriate Federal banking 
agency shall allow any insured depository institution to 
include an unidentifiable intangible asset in its calculation 
of compliance with the appropriate capital standard, if such 
unidentifiable intangible asset was acquired after April 12, 
1989, except to the extent permitted under section 5(t) of the 
Home Owners' Loan Act.
  (o) Real Estate Lending.--
          (1) Uniform regulations.--Not more than 9 months 
        after the date of enactment of the Federal Deposit 
        Insurance Corporation Improvement Act of 1991, each 
        appropriate Federal banking agency shall adopt uniform 
        regulations prescribing standards for extensions of 
        credit that are--
                  (A) secured by liens on interests in real 
                estate; or
                  (B) made for the purpose of financing the 
                construction of a building or other 
                improvements to real estate.
          (2) Standards.--
                  (A) Criteria.--In prescribing standards under 
                paragraph (1), the agencies shall consider--
                          (i) the risk posed to the Deposit 
                        Insurance Fund by such extensions of 
                        credit;
                          (ii) the need for safe and sound 
                        operation of insured depository 
                        institutions; and
                          (iii) the availability of credit.
                  (B) Variations permitted.--In prescribing 
                standards under paragraph (1), the appropriate 
                Federal banking agencies may differentiate 
                among types of loans--
                          (i) as may be required by Federal 
                        statute;
                          (ii) as may be warranted, based on 
                        the risk to the Deposit Insurance Fund; 
                        or
                          (iii) as may be warranted, based on 
                        the safety and soundness of the 
                        institutions.
          (3) Loan evaluation standard.--No appropriate Federal 
        banking agency shall adversely evaluate an investment 
        or a loan made by an insured depository institution, or 
        consider such a loan to be nonperforming, solely 
        because the loan is made to or the investment is in 
        commercial, residential, or industrial property, unless 
        such investment or loan may affect the institution's 
        safety and soundness.
          (4) Effective date.--The regulations adopted under 
        paragraph (1) shall become effective not later than 15 
        months after the date of enactment of the Federal 
        Deposit Insurance Corporation Improvement Act of 1991. 
        Such regulations shall continue in effect except as 
        uniformly amended by the appropriate Federal banking 
        agencies, acting in concert.
  (p) Periodic Review of Capital Standards.--Each appropriate 
Federal banking agency shall, in consultation with the other 
Federal banking agencies, biennially review its capital 
standards for insured depository institutions to determine 
whether those standards require sufficient capital to 
facilitate prompt corrective action to prevent or minimize loss 
to the Deposit Insurance Fund, consistent with section 38.
  (q) Sovereign Risk.--Section 25C of the Federal Reserve Act 
shall apply to every nonmember insured bank in the same manner 
and to the same extent as if the nonmember insured bank were a 
member bank.
  (r) Subsidiary Depository Institutions as Agents for Certain 
Affiliates.--
          (1) In general.--Any bank subsidiary of a bank 
        holding company may receive deposits, renew time 
        deposits, close loans, service loans, and receive 
        payments on loans and other obligations as an agent for 
        a depository institution affiliate.
          (2) Bank acting as agent is not a branch.--
        Notwithstanding any other provision of law, a bank 
        acting as an agent in accordance with paragraph (1) for 
        a depository institution affiliate shall not be 
        considered to be a branch of the affiliate.
          (3) Prohibitions on activities.--A depository 
        institution may not--
                  (A) conduct any activity as an agent under 
                paragraph (1) or (6) which such institution is 
                prohibited from conducting as a principal under 
                any applicable Federal or State law; or
                  (B) as a principal, have an agent conduct any 
                activity under paragraph (1) or (6) which the 
                institution is prohibited from conducting under 
                any applicable Federal or State law.
          (4) Existing authority not affected.--No provision of 
        this subsection shall be construed as affecting--
                  (A) the authority of any depository 
                institution to act as an agent on behalf of any 
                other depository institution under any other 
                provision of law; or
                  (B) whether a depository institution which 
                conducts any activity as an agent on behalf of 
                any other depository institution under any 
                other provision of law shall be considered to 
                be a branch of such other institution.
          (5) Agency relationship required to be consistent 
        with safe and sound banking practices.--An agency 
        relationship between depository institutions under 
        paragraph (1) or (6) shall be on terms that are 
        consistent with safe and sound banking practices and 
        all applicable regulations of any appropriate Federal 
        banking agency.
          (6) Affiliated insured savings associations.--An 
        insured savings association which was an affiliate of a 
        bank on July 1, 1994, may conduct activities as an 
        agent on behalf of such bank in the same manner as an 
        insured bank affiliate of such bank may act as agent 
        for such bank under this subsection to the extent such 
        activities are conducted only in--
                  (A) any State in which--
                          (i) the bank is not prohibited from 
                        operating a branch under any provision 
                        of Federal or State law; and
                          (ii) the savings association 
                        maintained an office or branch and 
                        conducted business as of July 1, 1994; 
                        or
                  (B) any State in which--
                          (i) the bank is not expressly 
                        prohibited from operating a branch 
                        under a State law described in section 
                        44(a)(2); and
                          (ii) the savings association 
                        maintained a main office and conducted 
                        business as of July 1, 1994.
  (s) Prohibition on Certain Affiliations.--
          (1) In general.--No depository institution may be an 
        affiliate of, be sponsored by, or accept financial 
        support, directly or indirectly, from any Government-
        sponsored enterprise.
          (2) Exception for members of a federal home loan 
        bank.--Paragraph (1) shall not apply with respect to 
        the membership of a depository institution in a Federal 
        home loan bank.
          (3) Routine business financing.--Paragraph (1) shall 
        not apply with respect to advances or other forms of 
        financial assistance provided by a Government-sponsored 
        enterprise pursuant to the statutes governing such 
        enterprise.
          (4) Student loans.--
                  (A) In general.--This subsection shall not 
                apply to any arrangement between the Holding 
                Company (or any subsidiary of the Holding 
                Company other than the Student Loan Marketing 
                Association) and a depository institution, if 
                the Secretary approves the affiliation and 
                determines that--
                          (i) the reorganization of such 
                        Association in accordance with section 
                        440 of the Higher Education Act of 
                        1965, as amended, will not be adversely 
                        affected by the arrangement;
                          (ii) the dissolution of the 
                        Association pursuant to such 
                        reorganization will occur before the 
                        end of the 2-year period beginning on 
                        the date on which such arrangement is 
                        consummated or on such earlier date as 
                        the Secretary deems appropriate: 
                        Provided, That the Secretary may extend 
                        this period for not more than 1 year at 
                        a time if the Secretary determines that 
                        such extension is in the public 
                        interest and is appropriate to achieve 
                        an orderly reorganization of the 
                        Association or to prevent market 
                        disruptions in connection with such 
                        reorganization, but no such extensions 
                        shall in the aggregate exceed 2 years;
                          (iii) the Association will not 
                        purchase or extend credit to, or 
                        guarantee or provide credit enhancement 
                        to, any obligation of the depository 
                        institution;
                          (iv) the operations of the 
                        Association will be separate from the 
                        operations of the depository 
                        institution; and
                          (v) until the ``dissolution date'' 
                        (as that term is defined in section 440 
                        of the Higher Education Act of 1965, as 
                        amended) has occurred, such depository 
                        institution will not use the trade name 
                        or service mark ``Sallie Mae'' in 
                        connection with any product or service 
                        it offers if the appropriate Federal 
                        banking agency for such depository 
                        institution determines that--
                                  (I) the depository 
                                institution is the only 
                                institution offering such 
                                product or service using the 
                                ``Sallie Mae'' name; and
                                  (II) such use would result in 
                                the depository institution 
                                having an unfair competitive 
                                advantage over other depository 
                                institutions.
                  (B) Terms and conditions.--In approving any 
                arrangement referred to in subparagraph (A) the 
                Secretary may impose any terms and conditions 
                on such an arrangement that the Secretary 
                considers appropriate, including--
                          (i) imposing additional restrictions 
                        on the issuance of debt obligations by 
                        the Association; or
                          (ii) restricting the use of proceeds 
                        from the issuance of such debt.
                  (C) Additional limitations.--In the event 
                that the Holding Company (or any subsidiary of 
                the Holding Company) enters into such an 
                arrangement, the value of the Association's 
                ``investment portfolio'' shall not at any time 
                exceed the lesser of--
                          (i) the value of such portfolio on 
                        the date of the enactment of this 
                        subsection; or
                          (ii) the value of such portfolio on 
                        the date such an arrangement is 
                        consummated. The term ``investment 
                        portfolio'' shall mean all investments 
                        shown on the consolidated balance sheet 
                        of the Association other than--
                                  (I) any instrument or assets 
                                described in section 439(d) of 
                                the Higher Education Act of 
                                1965, as such section existed 
                                on the day before the date of 
                                the repeal of such section;
                                  (II) any direct noncallable 
                                obligations of the United 
                                States or any agency thereof 
                                for which the full faith and 
                                credit of the United States is 
                                pledged; or
                                  (III) cash or cash 
                                equivalents.
                  (D) Enforcement.--The terms and conditions 
                imposed under subparagraph (B) may be enforced 
                by the Secretary in accordance with section 440 
                of the Higher Education Act of 1965.
                  (E) Definitions.--For purposes of this 
                paragraph, the following definition shall 
                apply--
                          (i) Association; holding company.--
                        Notwithstanding any provision in 
                        section 3, the terms ``Association'' 
                        and ``Holding Company'' have the same 
                        meanings as in section 440(i) of the 
                        Higher Education Act of 1965.
                          (ii) Secretary.--The term 
                        ``Secretary'' means the Secretary of 
                        the Treasury.
          (5) Government-sponsored enterprise defined.--For 
        purposes of this subsection, the term ``Government-
        sponsored enterprise'' has the meaning given to such 
        term in section 1404(e)(1)(A) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 
        1989.
  (t) Recordkeeping Requirements.--
          (1) Requirements.--Each appropriate Federal banking 
        agency, after consultation with and consideration of 
        the views of the Commission, shall establish 
        recordkeeping requirements for banks relying on 
        exceptions contained in paragraphs (4) and (5) of 
        section 3(a) of the Securities Exchange Act of 1934. 
        Such recordkeeping requirements shall be sufficient to 
        demonstrate compliance with the terms of such 
        exceptions and be designed to facilitate compliance 
        with such exceptions.
          (2) Availability to commission; confidentiality.--
        Each appropriate Federal banking agency shall make any 
        information required under paragraph (1) available to 
        the Commission upon request. Notwithstanding any other 
        provision of law, the Commission shall not be compelled 
        to disclose any such information. Nothing in this 
        paragraph shall authorize the Commission to withhold 
        information from Congress, or prevent the Commission 
        from complying with a request for information from any 
        other Federal department or agency or any self-
        regulatory organization requesting the information for 
        purposes within the scope of its jurisdiction, or 
        complying with an order of a court of the United States 
        in an action brought by the United States or the 
        Commission. For purposes of section 552 of title 5, 
        United States Code, this paragraph shall be considered 
        a statute described in subsection (b)(3)(B) of such 
        section 552.
          (3) Definition.--As used in this subsection the term 
        ``Commission'' means the Securities and Exchange 
        Commission.
  (u) Limitation on Claims.--
          (1) In general.--No person may bring a claim against 
        any Federal banking agency (including in its capacity 
        as conservator or receiver) for the return of assets of 
        an affiliate or controlling shareholder of the insured 
        depository institution transferred to, or for the 
        benefit of, an insured depository institution by such 
        affiliate or controlling shareholder of the insured 
        depository institution, or a claim against such Federal 
        banking agency for monetary damages or other legal or 
        equitable relief in connection with such transfer, if 
        at the time of the transfer--
                  (A) the insured depository institution is 
                subject to any direction issued in writing by a 
                Federal banking agency to increase its capital; 
                and
                  (B) for that portion of the transfer that is 
                made by an entity covered by section 5(g) of 
                the Bank Holding Company Act of 1956 or section 
                45 of this Act, the Federal banking agency has 
                followed the procedure set forth in such 
                section.
          (2) Definition of claim.--For purposes of paragraph 
        (1), the term ``claim''--
                  (A) means a cause of action based on Federal 
                or State law that--
                          (i) provides for the avoidance of 
                        preferential or fraudulent transfers or 
                        conveyances; or
                          (ii) provides similar remedies for 
                        preferential or fraudulent transfers or 
                        conveyances; and
                  (B) does not include any claim based on 
                actual intent to hinder, delay, or defraud 
                pursuant to such a fraudulent transfer or 
                conveyance law.
  (v) Loans by Insured Institutions on Their Own Stock.--
          (1) General prohibition.--No insured depository 
        institution may make any loan or discount on the 
        security of the shares of its own capital stock.
          (2) Exclusion.--For purposes of this subsection, an 
        insured depository institution shall not be deemed to 
        be making a loan or discount on the security of the 
        shares of its own capital stock if it acquires the 
        stock to prevent loss upon a debt previously contracted 
        for in good faith.
  (w) Written Employment References May Contain Suspicions of 
Involvement in Illegal Activity.--
          (1) Authority to disclose information.--
        Notwithstanding any other provision of law, any insured 
        depository institution, and any director, officer, 
        employee, or agent of such institution, may disclose in 
        any written employment reference relating to a current 
        or former institution-affiliated party of such 
        institution which is provided to another insured 
        depository institution in response to a request from 
        such other institution, information concerning the 
        possible involvement of such institution-affiliated 
        party in potentially unlawful activity.
          (2) Information not required.--Nothing in paragraph 
        (1) shall be construed, by itself, to create any 
        affirmative duty to include any information described 
        in paragraph (1) in any employment reference referred 
        to in paragraph (1).
          (3) Malicious intent.--Notwithstanding any other 
        provision of this subsection, voluntary disclosure made 
        by an insured depository institution, and any director, 
        officer, employee, or agent of such institution, under 
        this subsection concerning potentially unlawful 
        activity that is made with malicious intent, shall not 
        be shielded from liability from the person identified 
        in the disclosure.
          (4) Definition.--For purposes of this subsection, the 
        term ``insured depository institution'' includes any 
        uninsured branch or agency of a foreign bank.
  (x) Privileges Not Affected by Disclosure to Banking Agency 
or Supervisor.--
          (1) In general.--The submission by any person of any 
        information to the [Bureau of Consumer Financial 
        Protection] Consumer Financial Protection Bureau, any 
        Federal banking agency, State bank supervisor, or 
        foreign banking authority for any purpose in the course 
        of any supervisory or regulatory process of such 
        Bureau, agency, supervisor, or authority shall not be 
        construed as waiving, destroying, or otherwise 
        affecting any privilege such person may claim with 
        respect to such information under Federal or State law 
        as to any person or entity other than such Bureau, 
        agency, supervisor, or authority.
          (2) Rule of construction.--No provision of paragraph 
        (1) may be construed as implying or establishing that--
                  (A) any person waives any privilege 
                applicable to information that is submitted or 
                transferred under any circumstance to which 
                paragraph (1) does not apply; or
                  (B) any person would waive any privilege 
                applicable to any information by submitting the 
                information to the [Bureau of Consumer 
                Financial Protection] Consumer Financial 
                Protection Bureau, any Federal banking agency, 
                State bank supervisor, or foreign banking 
                authority, but for this subsection.
  (y) State Lending Limit Treatment of Derivatives 
Transactions.--An insured State bank may engage in a derivative 
transaction, as defined in section 5200(b)(3) of the Revised 
Statutes of the United States (12 U.S.C. 84(b)(3)), only if the 
law with respect to lending limits of the State in which the 
insured State bank is chartered takes into consideration credit 
exposure to derivative transactions.
  (z) General Prohibition on Sale of Assets.--
          (1) In general.--An insured depository institution 
        may not purchase an asset from, or sell an asset to, an 
        executive officer, director, or principal shareholder 
        of the insured depository institution, or any related 
        interest of such person (as such terms are defined in 
        section 22(h) of Federal Reserve Act), unless--
                  (A) the transaction is on market terms; and
                  (B) if the transaction represents more than 
                10 percent of the capital stock and surplus of 
                the insured depository institution, the 
                transaction has been approved in advance by a 
                majority of the members of the board of 
                directors of the insured depository institution 
                who do not have an interest in the transaction.
          (2) Rulemaking.--The Board of Governors of the 
        Federal Reserve System may issue such rules as may be 
        necessary to define terms and to carry out the purposes 
        this subsection. Before proposing or adopting a rule 
        under this paragraph, the Board of Governors of the 
        Federal Reserve System shall consult with the 
        Comptroller of the Currency and the Corporation as to 
        the terms of the rule.
  (aa) Treatment of Certain Municipal Obligations.--
          (1) Definitions.--In this subsection--
                  (A) the term ``investment grade'', with 
                respect to an obligation, has the meaning given 
                the term in section 1.2 of title 12, Code of 
                Federal Regulations, or any successor thereto;
                  (B) the term ``liquid and readily-
                marketable'' has the meaning given the term in 
                section 249.3 of title 12, Code of Federal 
                Regulations, or any successor thereto; and
                  (C) the term ``municipal obligation'' means 
                an obligation of--
                          (i) a State or any political 
                        subdivision thereof; or
                          (ii) any agency or instrumentality of 
                        a State or any political subdivision 
                        thereof.
          (2) Municipal obligations.--For purposes of the final 
        rule entitled ``Liquidity Coverage Ratio: Liquidity 
        Risk Measurement Standards'' (79 Fed. Reg. 61439 
        (October 10, 2014)), the final rule entitled 
        ``Liquidity Coverage Ratio: Treatment of U.S. Municipal 
        Securities as High-Quality Liquid Assets'' (81 Fed. 
        Reg. 21223 (April 11, 2016)), and any other regulation 
        that incorporates a definition of the term ``high-
        quality liquid asset'' or another substantially similar 
        term, the appropriate Federal banking agencies shall 
        treat a municipal obligation as a high-quality liquid 
        asset that is a level 2B liquid asset if that 
        obligation is, as of the date of calculation--
                  (A) liquid and readily-marketable; and
                  (B) investment grade.

           *       *       *       *       *       *       *


SEC. 43. DEPOSITORY INSTITUTIONS LACKING FEDERAL DEPOSIT INSURANCE.

  (a) Annual Independent Audit of Private Deposit Insurers.--
          (1) Audit required.--Any private deposit insurer 
        shall obtain an annual audit from an independent 
        auditor using generally accepted auditing standards. 
        The audit shall include a determination of whether the 
        private deposit insurer follows generally accepted 
        accounting principles and has set aside sufficient 
        reserves for losses.
          (2) Providing copies of audit report.--
                  (A) Private deposit insurer.--The private 
                deposit insurer shall provide a copy of the 
                audit report--
                          (i) to each depository institution 
                        the deposits of which are insured by 
                        the private deposit insurer, not later 
                        than 14 days after the audit is 
                        completed;
                          (ii) to the appropriate supervisory 
                        agency of each State in which such an 
                        institution receives deposits, not 
                        later than 7 days after the audit is 
                        completed; and
                          (iii) in the case of depository 
                        institutions described in subsection 
                        (e)(2)(A) the deposits of which are 
                        insured by the private insurer which 
                        are members of a Federal home loan 
                        bank, to the Federal Housing Finance 
                        Agency, not later than 7 days after the 
                        audit is completed.
                  (B) Depository institution.--Any depository 
                institution the deposits of which are insured 
                by the private deposit insurer shall provide a 
                copy of the audit report, upon request, to any 
                current or prospective customer of the 
                institution.
          (3) Enforcement by appropriate state supervisor.--Any 
        appropriate State supervisor of a private deposit 
        insurer, and any appropriate State supervisor of a 
        depository institution which receives deposits that are 
        insured by a private deposit insurer, may examine and 
        enforce compliance with this subsection under the 
        applicable regulatory authority of such supervisor.
  (b) Disclosure Required.--Any depository institution lacking 
Federal deposit insurance shall, within the United States, do 
the following:
          (1) Periodic statements; account records.--Include 
        conspicuously in all periodic statements of account, on 
        each signature card, and on each passbook, certificate 
        of deposit, or share certificate. a notice that the 
        institution is not federally insured, and that if the 
        institution fails, the Federal Government does not 
        guarantee that depositors will get back their money.
          (2) Advertising; premises.--
                  (A) In general.--Include clearly and 
                conspicuously in all advertising, except as 
                provided in subparagraph (B); and at each 
                station or window where deposits are normally 
                received, its principal place of business and 
                all its branches where it accepts deposits or 
                opens accounts (excluding automated teller 
                machines or point of sale terminals), and on 
                its main Internet page, a notice that the 
                institution is not federally insured.
                  (B) Exceptions.--The following need not 
                include a notice that the institution is not 
                federally insured:
                          (i) Any sign, document, or other item 
                        that contains the name of the 
                        depository institution, its logo, or 
                        its contact information, but only if 
                        the sign, document, or item does not 
                        include any information about the 
                        institution's products or services or 
                        information otherwise promoting the 
                        institution.
                          (ii) Small utilitarian items that do 
                        not mention deposit products or 
                        insurance if inclusion of the notice 
                        would be impractical.
          (3) Acknowledgment of disclosure.--
                  (A) New depositors obtained other than 
                through a conversion or merger.--With respect 
                to any depositor who was not a depositor at the 
                depository institution before the effective 
                date of the Financial Services Regulatory 
                Relief Act of 2006, and who is not a depositor 
                as described in subparagraph (B), receive any 
                deposit for the account of such depositor only 
                if the depositor has signed a written 
                acknowledgement that--
                          (i) the institution is not federally 
                        insured; and
                          (ii) if the institution fails, the 
                        Federal Government does not guarantee 
                        that the depositor will get back the 
                        depositor's money.
                  (B) New depositors obtained through a 
                conversion or merger.--With respect to a 
                depositor at a federally insured depository 
                institution that converts to, or merges into, a 
                depository institution lacking federal 
                insurance after the effective date of the 
                Financial Services Regulatory Relief Act of 
                2006, receive any deposit for the account of 
                such depositor only if--
                          (i) the depositor has signed a 
                        written acknowledgement described in 
                        subparagraph (A); or
                          (ii) the institution makes an 
                        attempt, as described in subparagraph 
                        (D) and sent by mail no later than 45 
                        days after the effective date of the 
                        conversion or merger, to obtain the 
                        acknowledgment.
                  (C) Current depositors.--Receive any deposit 
                after the effective date of the Financial 
                Services Regulatory Relief Act of 2006 for the 
                account of any depositor who was a depositor on 
                that date only if--
                          (i) the depositor has signed a 
                        written acknowledgement described in 
                        subparagraph (A); or
                          (ii) the institution has complied 
                        with the provisions of subparagraph (E) 
                        which are applicable as of the date of 
                        the deposit.
                  (D) Alternative provision of notice to new 
                depositors obtained through a conversion or 
                merger.--
                          (i) In general.--Transmit to each 
                        depositor who has not signed a written 
                        acknowledgement described in 
                        subparagraph (A)--
                                  (I) a conspicuous card 
                                containing the information 
                                described in clauses (i) and 
                                (ii) of subparagraph (A), and a 
                                line for the signature of the 
                                depositor; and
                                  (II) accompanying materials 
                                requesting the depositor to 
                                sign the card, and return the 
                                signed card to the institution.
                  (E) Alternative provision of notice to 
                current depositors.--
                          (i) In general.--Transmit to each 
                        depositor who was a depositor before 
                        the effective date of the Financial 
                        Services Regulatory Relief Act of 2006, 
                        and has not signed a written 
                        acknowledgement described in 
                        subparagraph (A)--
                                  (I) a conspicuous card 
                                containing the information 
                                described in clauses (i) and 
                                (ii) of subparagraph (A), and a 
                                line for the signature of the 
                                depositor; and
                                  (II) accompanying materials 
                                requesting the depositor to 
                                sign the card, and return the 
                                signed card to the institution.
                          (ii) Manner and timing of notice.--
                                  (I) First notice.--Make the 
                                transmission described in 
                                clause (i) via mail not later 
                                than three months after the 
                                effective date of the Financial 
                                Services Regulatory Relief Act 
                                of 2006.
                                  (II) Second notice.--Make a 
                                second transmission described 
                                in clause (i) via mail not less 
                                than 30 days and not more than 
                                three months after a 
                                transmission to the depositor 
                                in accordance with subclause 
                                (I), if the institution has 
                                not, by the date of such 
                                mailing, received from the 
                                depositor a card referred to in 
                                clause (i) which has been 
                                signed by the depositor.
  (c) Manner and Content of Disclosure.--To ensure that current 
and prospective customers understand the risks involved in 
foregoing Federal deposit insurance, the Bureau, by regulation 
or order, shall prescribe the manner and content of disclosure 
required under this section, which shall be presented in such 
format and in such type size and manner as to be simple and 
easy to understand.
  (d) Exceptions for Institutions Not Receiving Retail 
Deposits.--The Bureau may, by regulation or order, make 
exceptions to subsection (b) for any depository institution 
that, within the United States, does not receive initial 
deposits of less than an amount equal to the standard maximum 
deposit insurance amount from individuals who are citizens or 
residents of the United States, other than money received in 
connection with any draft or similar instrument issued to 
transmit money.
  (e) Definitions.--For purposes of this section:
          (1) Appropriate supervisor.--The ``appropriate 
        supervisor'' of a depository institution means the 
        agency primarily responsible for supervising the 
        institution.
          (2) Depository institution.--The term ``depository 
        institution'' includes--
                  (A) any entity described in section 
                19(b)(1)(A)(iv) of the Federal Reserve Act; and
                  (B) any entity that, as determined by the 
                Bureau--
                          (i) is engaged in the business of 
                        receiving deposits; and
                          (ii) could reasonably be mistaken for 
                        a depository institution by the 
                        entity's current or prospective 
                        customers.
          (3) Lacking federal deposit insurance.--A depository 
        institution lacks Federal deposit insurance if the 
        institution is not either--
                  (A) an insured depository institution; or
                  (B) an insured credit union, as defined in 
                section 101 of the Federal Credit Union Act.
          (4) Private deposit insurer.--The term ``private 
        deposit insurer'' means any entity insuring the 
        deposits of any depository institution lacking Federal 
        deposit insurance.
          (5) Bureau.--The term ``Bureau'' means the [Bureau of 
        Consumer Financial Protection] Consumer Financial 
        Protection Bureau.
  (f) Enforcement.--
          (1) Limited enforcement authority.--Compliance with 
        the requirements of subsections (b), (c), and (e), and 
        any regulation prescribed or order issued under such 
        subsection, shall be enforced under the Consumer 
        Financial Protection Act of 2010, by the Bureau, 
        subject to subtitle B of the Consumer Financial 
        Protection Act of 2010, and under the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) by the Federal 
        Trade Commission.
          (2) Broad state enforcement authority.--
                  (A) In general.--Subject to subparagraph (C), 
                an appropriate State supervisor of a depository 
                institution lacking Federal deposit insurance 
                may examine and enforce compliance with the 
                requirements of this section, and any 
                regulation prescribed under this section.
                  (B) State powers.--For purposes of bringing 
                any action to enforce compliance with this 
                section, no provision of this section shall be 
                construed as preventing an appropriate State 
                supervisor of a depository institution lacking 
                Federal deposit insurance from exercising any 
                powers conferred on such official by the laws 
                of such State.
                  (C) Limitation on state action while federal 
                action pending.--If the Bureau or Federal Trade 
                Commission has instituted an enforcement action 
                for a violation of this section, no appropriate 
                State supervisory agency may, during the 
                pendency of such action, bring an action under 
                this section against any defendant named in the 
                complaint of the Bureau or Federal Trade 
                Commission for any violation of this section 
                that is alleged in that complaint.

           *       *       *       *       *       *       *


           *       *       *       *       *       *       *

                              ----------                              


     FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978



           *       *       *       *       *       *       *
TITLE X--FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

           *       *       *       *       *       *       *


SEC. 1011. ESTABLISHMENT OF APPRAISAL SUBCOMMITTEE.

  There shall be within the Council a subcommittee to be known 
as the ``Appraisal Subcommittee'', which shall consist of the 
designees of the heads of the Federal financial institutions 
regulatory agencies, the [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau, and the 
Federal Housing Finance Agency. Each such designee shall be a 
person who has demonstrated knowledge and competence concerning 
the appraisal profession. At all times at least one member of 
the Appraisal Subcommittee shall have demonstrated knowledge 
and competence through licensure, certification, or 
professional designation within the appraisal profession.

TITLE XI--RIGHT TO FINANCIAL PRIVACY

           *       *       *       *       *       *       *


                              definitions

  Sec. 1101. For the purpose of this title, the term--
          (1) ``financial institution'', except as provided in 
        section 1114, means any office of a bank, savings bank, 
        card issuer as defined in section 103 of the Consumers 
        Credit Protection Act (15 U.S.C. 1602(n)), industrial 
        loan company, trust company, savings association, 
        building and loan, or homestead association (including 
        cooperative banks), credit union, or consumer finance 
        institution, located in any State or territory of the 
        United States, the District of Columbia, Puerto Rico, 
        Guam, American Samoa, or the Virgin Islands;
          (2) ``financial record'' means an original of, a copy 
        of, or information known to have been derived from, any 
        record held by a financial institution pertaining to a 
        customer's relationship with the financial institution;
          (3) ``Government authority'' means any agency or 
        department of the United States, or any officer, 
        employee, or agent thereof;
          (4) ``person'' means an individual or a partnership 
        of five or fewer individuals;
          (5) ``customer'' means any person or authorized 
        representative of that person who utilized or is 
        utilizing any service of a financial institution, or 
        for whom a financial institution is acting or has acted 
        as a fiduciary, in relation to an account maintained in 
        the person's name;
          (6) ``holding company'' means--
                  (A) any bank holding company (as defined in 
                section 2 of the Bank Holding Company Act of 
                1956); and
                  (B) any company described in section 4(f)(1) 
                of the Bank Holding Company Act of 1956;
          (7) ``supervisory agency'' means with respect to any 
        particular financial institution, holding company, or 
        any subsidiary of a financial institution or holding 
        company, any of the following which has statutory 
        authority to examine the financial condition, business 
        operations, or records or transactions of that 
        institution, holding company, or subsidiary--
                  (A) the Federal Deposit Insurance 
                Corporation;
                  (B) the [Bureau of Consumer Financial 
                Protection] Consumer Financial Protection 
                Bureau;
                  (C) the National Credit Union Administration;
                  (D) the Board of Governors of the Federal 
                Reserve System;
                  (E) the Comptroller of the Currency;
                  (F) the Securities and Exchange Commission;
                  (G) the Commodity Futures Trading Commission;
                  (H) the Secretary of the Treasury, with 
                respect to the Bank Secrecy Act and the 
                Currency and Foreign Transactions Reporting Act 
                (Public Law 91-508, title I and II); or
                  (I) any State banking or securities 
                department or agency; and
          (8) ``law enforcement inquiry'' means a lawful 
        investigation or official proceeding inquiring into a 
        violation of, or failure to comply with, any criminal 
        or civil statute or any regulation, rule, or order 
        issued pursuant thereto.

           *       *       *       *       *       *       *


                           use of information

  Sec. 1112. (a) Financial records originally obtained pursuant 
to this title shall not be transferred to another agency or 
department unless the transferring agency or department 
certifies in writing that there is reason to believe that the 
records are relevant to a legitimate law enforcement inquiry, 
or intelligence or counterintelligence activity, investigation 
or analysis related to international terrorism within the 
jurisdiction of the receiving agency or department.
  (b) When financial records subject to this title are 
tranferred pursuant to subsection (a), the transferring agency 
or department shall, within fourteen days, send to the customer 
a copy of the certification made pursuant to subsection (a) and 
the following notice, which shall state the nature of the law 
enforcement inquiry with reasonable specificity: ``Copies of, 
or information contained in, your financial records lawfully in 
possession of have been furnished to pursuant to the Right of 
Financial Privacy Act of 1978 for the following purpose:. If 
you believe that this transfer has not been made to further a 
legitimate law enforcement inquiry, you may have legal rights 
under the Financial Privacy Act of 1978 or the Privacy Act of 
1974.''
  (c) Notwithstanding subsection (b), notice to the customer 
may be delayed if the transferring agency or department has 
obtained a court order delaying notice pursuant to section 1109 
(a) and (b) and that order is still in effect, of if the 
receiving agency or department obtains a court order 
authorizing a delay in notice pursuant to section 1109 (a) and 
(b). Upon the expiration of any such period of delay, the 
transferring agency or department shall serve to the customer 
the notice specified in subsection (b) above and the agency or 
department that obtained the court order authorizing a delay in 
notice pursuant to section 1109 (a) and (b) shall serve to the 
customer the notice specified in section 1109 (b).
  (d) Nothing in this title prohibits any supervisory agency 
from exchanging examination reports or other information with 
another supervisory agency. Nothing in this title prohibits the 
transfer of a customer's financial records needed by counsel 
for a Government authority to defend an action brought by the 
customer. Nothing in this title shall authorize the withholding 
of information by any officer or employee of a supervisory 
agency from a duly authorized committee or subcommittee of the 
Congress.
  (e) Notwithstanding section 1101(6) or any other provision of 
law, the exchange of financial records, examination reports or 
other information with respect to a financial institution, 
holding company, or a subsidiary of a depository institution or 
holding company, among and between the five member supervisory 
agencies of the Federal Financial Institutions Examination 
Council, the Securities and Exchange Commission, the Federal 
Trade Commission, the Commodity Futures Trading Commission, and 
the [Bureau of Consumer Financial Protection] Consumer 
Financial Protection Bureau is permitted.
  (f) Transfer to Attorney General.--
          (1) In general.--Nothing in this title shall apply 
        when financial records obtained by an agency or 
        department of the United States are disclosed or 
        transferred to the Attorney General or the Secretary of 
        the Treasury upon the certification by a supervisory 
        level official of the transferring agency or department 
        that--
                  (A) there is reason to believe that the 
                records may be relevant to a violation of 
                Federal criminal law; and
                  (B) the records were obtained in the exercise 
                of the agency's or department's supervisory or 
                regulatory functions.
          (2) Limitation on use.--Records so transferred shall 
        be used only for criminal investigative or prosecutive 
        purposes, for civil actions under section 951 of the 
        Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989, or for forfeiture under 
        sections 981 or 982 of title 18, United States Code, by 
        the Department of Justice and only for criminal 
        investigative purposes relating to money laundering and 
        other financial crimes by the Department of the 
        Treasury and shall, upon completion of the 
        investigation or prosecution (including any appeal), be 
        returned only to the transferring agency or department. 
        No agency or department so transferring such records 
        shall be deemed to have waived any privilege applicable 
        to those records under law.

                               exceptions

  Sec. 1113. (a) Nothing in this title prohibits the disclosure 
of any financial records or information which is not identified 
with or identifiable as being derived from the financial 
records of a particular customer.
  (b) This chapter shall not apply to the examination by or 
disclosure to any supervisory agency of financial records or 
information in the exercise of its supervisory, regulatory, or 
monetary functions, including conservatorship or receivership 
functions, with respect to any financial institution, holding 
company, subsidiary of a financial institution or holding 
company, institution-affiliated party (within the meaning of 
section 3(u) of the Federal Deposit Insurance Act) with respect 
to a financial institution, holding company, or subsidiary, or 
other person participating in the conduct of the affairs 
thereof.
  (c) Nothing in this title prohibits the disclosure of 
financial records in accordance with procedures authorized by 
the Internal Revenue Code.
  (d) Nothing in this title shall authorize the withholding of 
financial records or information required to be reported in 
accordance with any Federal statute or rule promulgated 
thereunder.
  (e) Nothing in this title shall apply when financial records 
are sought by a Government authority under the Federal Rules of 
Civil or Criminal Procedure or comparable rules of other courts 
in connection with litigation to which the Government authority 
and the customer are parties.
  (f) Nothing in this title shall apply when financial records 
are sought by a Government authority pursuant to an 
administrative subpena issued by an administrative law judge in 
an adjudicatory proceeding subject to section 554 of title 5, 
United States Code, and to which the Government authority and 
the customer are parties.
  (g) The notice requirements of this title and sections 1110 
and 1112 shall not apply when a Government authority by a means 
described in section 1102 and for a legitimate law enforcement 
inquiry is seeking only the name, address, account number, and 
type of account of any customer or ascertainable group of 
customers associated (1) with a financial transaction or class 
of financial transactions, or (2) with a foreign country or 
subdivision thereof in the case of a Government authority 
exercising financial controls over foreign accounts in the 
United States under section 5(b) of the Trading with the Enemy 
Act (50 U.S.C. App. 5(b)); the International Emergency Economic 
Powers Act (title II, Public Law 95-223); or section 5 of the 
United Nations Participation Act (22 U.S.C. 287(c)).
  (h)(1) Nothing in this title (except sections 1103, 1117 and 
1118) shall apply when financial records are sought by a 
Government authority--
          (A) in connection with a lawful proceeding, 
        investigation, examination, or inspection directed at a 
        financial institution (whether or not such proceeding, 
        investigation, examination, or inspection is also 
        directed at a customer) or at a legal entity which is 
        not a customer; or
          (B) in connection with the authority's consideration 
        or administration of assistance to the customer in the 
        form of a Government loan, loan guaranty, or loan 
        insurance program.
  (2) When financial records are sought pursuant to this 
subsection, the Government authority shall submit to the 
financial institution the certificate required by section 
1103(b). For access pursuant to paragraph (1)(B), no further 
certification shall be required for subsequent access by the 
certifying Government authority during the term of the loan, 
loan guaranty, or loan insurance agreement.
  (3) After the effective date of this title, whenever a 
customer applies for participation in a Government loan, loan 
guaranty, or loan insurance program, the Government authority 
administering such program shall give the customer written 
notice of the authority's access rights under this subsection. 
No further notification shall be required for subsequent access 
by that authority during the term of the loan, loan guaranty, 
or loan insurance agreement.
  (4) Financial records obtained pursuant to this subsection 
may be used only for the purpose for which they were originally 
obtained, and may be transferred to another agency or 
department only when the transfer is to facilitate a lawful 
proceeding, investigation, examination, or inspection directed 
at a financial institution (whether or not such proceeding, 
investigation, examination, or inspection is also directed at a 
customer), or at a legal entity which is not a customer, except 
that--
          (A) nothing in this paragraph prohibits the use or 
        transfer of a customer's financial records needed by 
        counsel representing a Government authority in a civil 
        action arising from a Government loan, loan guaranty, 
        or loan insurance agreement; and
          (B) nothing in this paragraph prohibits a Government 
        authority providing assistance to a customer in the 
        form of a loan, loan guaranty, or loan insurance 
        agreement from using or transferring financial records 
        necessary to process, service or foreclose a loan, or 
        to collect on an indebtedness to the Government 
        resulting from a customer's default.
  (5) Notification that financial records obtained pursuant to 
this subsection may relate to a potential civil, criminal, or 
regulatory violation by a customer may be given to an agency or 
department with jurisdiction over the violation, and such 
agency or department may than seek access to the records 
pursuant to the provisions of this title.
  (6) Each financial institution shall keep a notation of each 
disclosure made pursuant to paragraph (1)(B) of this 
subsection, including the date of such disclosure and the 
Government authority to which it was made. The customer shall 
be entitled to inspect this information.
  (i) Nothing in this title (except sections 1115 and 1120) 
shall apply to any subpena or court order issued in connection 
with proceedings before a grand jury, except that a court shall 
have authority to order a financial institution, on which a 
grand jury subpena for customer records has been served, not to 
notify the customer of the existence of the subpena or 
information that has been furnished to the grand jury, under 
the circumstances and for the period specified and pursuant to 
the procedures established in section 1109 of the Right to 
Financial Privacy Act of 1978 (12 U.S.C. 3409).
  (j) This title shall not apply when financial records are 
sought by the General Accounting Office pursuant to an 
authorized proceeding, investigation, examination or audit 
directed at a government authority.
  (k) Disclosure Necessary for Proper Administration of 
Programs of Certain Government Authorities.--(1) Nothing in 
this title shall apply to the disclosure by the financial 
institution of the name and address of any customer to the 
Department of the Treasury, the Social Security Administration, 
or the Railroad Retirement Board, where the disclosure of such 
information is necessary to, and such information is used 
solely for the purpose of, the proper administration of section 
1441 of the Internal Revenue Code of 1954, title II of the 
Social Security Act, or the Railroad Retirement Act of 1974.
          (2) Nothing in this title shall apply to the 
        disclosure by the financial institution of information 
        contained in the financial records of any customer to 
        any Government authority that certifies, disburses, or 
        collects payments, where the disclosure of such 
        information is necessary to, and such information is 
        used solely for the purpose of--
                  (A) verification of the identity of any 
                person or proper routing and delivery of funds 
                in connection with the issuance of a Federal 
                payment or collection of funds by a Government 
                authority; or
                  (B) the investigation or recovery of an 
                improper Federal payment or collection of funds 
                or an improperly negotiated Treasury check.
          (3) Notwithstanding any other provision of law, a 
        request authorized by paragraph (1) or (2) (and the 
        information contained therein) may be used by the 
        financial institution or its agents solely for the 
        purpose of providing information contained in the 
        financial records of the customer to the Government 
        authority requesting the information, and the financial 
        institution and its agents shall be barred from 
        redisclosure of such information. Any Government 
        authority receiving information pursuant to paragraph 
        (1) or (2) may not disclose or use the information, 
        except for the purposes set forth in such paragraph.
  (l) Crimes Against Financial Institutions by Insiders.--
Nothing in this title shall apply when any financial 
institution or supervisory agency provides any financial record 
of any officer, director, employee, or controlling shareholder 
(within the meaning of subparagraph (A) or (B) of section 
2(a)(2) of the Bank Holding Company Act of 1956 or subparagraph 
(A) or (B) of section 408(a)(2) of the National Housing Act) of 
such institution, or of any major borrower from such 
institution who there is reason to believe may be acting in 
concert with any such officer, director, employee, or 
controlling shareholder, to the Attorney General of the United 
States, to a State law enforcement agency, or, in the case of a 
possible violation of subchapter II of chapter 53 of title 31, 
United States Code, to the Secretary of the Treasury if there 
is reason to believe that such record is relevant to a possible 
violation by such person of--
          (1) any law relating to crimes against financial 
        institutions or supervisory agencies by directors, 
        officers, employees, or controlling shareholders of, or 
        by borrowers from, financial institutions; or
          (2) any provision of subchapter II of chapter 53 of 
        title 31, United States Code or of section 1956 or 1957 
        of title 18, United States Code.
No supervisory agency which transfers any such record under 
this subsection shall be deemed to have waived any privilege 
applicable to that record under law.
  (m) This title shall not apply to the examination by or 
disclosure to employees or agents of the Board of Governors of 
the Federal Reserve System or any Federal Reserve Bank of 
financial records or information in the exercise of the Federal 
Reserve System's authority to extend credit to the financial 
institutions or others.
  (n) This title shall not apply to the examination by or 
disclosure to the Resolution Trust Corporation or its employees 
or agents of financial records or information in the exercise 
of its conservatorship, receivership, or liquidation functions 
with respect to a financial institution.
  (o) This title shall not apply to the examination by or 
disclosure to the Federal Housing Finance Agency or any of the 
Federal home loan banks of financial records or information in 
the exercise of the Federal Housing Finance Agency's authority 
to extend credit (either directly or through a Federal home 
loan bank) to financial institutions or others.
  (p)(1) Nothing in this title shall apply to the disclosure by 
the financial institution of the name and address of any 
customer to the Department of Veterans Affairs where the 
disclosure of such information is necessary to, and such 
information is used solely for the purposes of, the proper 
administration of benefits programs under laws administered by 
the Secretary.
  (2) Notwithstanding any other provision of law, any request 
authorized by paragraph (1) (and the information contained 
therein) may be used by the financial institution or its agents 
solely for the purpose of providing the customer's name and 
address to the Department of Veterans Affairs and shall be 
barred from redisclosure by the financial institution or its 
agents.
  (q) Nothing in this title shall apply to the disclosure of 
any financial record or information to a Government authority 
in conjunction with a Federal contractor-issued travel charge 
card issued for official Government travel.
  (r) Disclosure to the [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau.--Nothing in 
this title shall apply to the examination by or disclosure to 
the [Bureau of Consumer Financial Protection] Consumer 
Financial Protection Bureau of financial records or information 
in the exercise of its authority with respect to a financial 
institution.

           *       *       *       *       *       *       *

                              ----------                              


  FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989



           *       *       *       *       *       *       *
TITLE XI--REAL ESTATE APPRAISAL REFORM AMENDMENTS

           *       *       *       *       *       *       *


SEC. 1112. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS REGULATORY 
                    AGENCIES RELATING TO APPRAISER QUALIFICATIONS.

  (a) In General.--Each Federal financial institutions 
regulatory agency and the Resolution Trust Corporation shall 
prescribe, in accordance with sections 1113 and 1114 of this 
title, which categories of federally related transactions 
should be appraised by a State certified appraiser and which by 
a State licensed appraiser under this title.
  (b) Threshold Level.--Each Federal financial institutions 
regulatory agency and the Resolution Trust Corporation may 
establish a threshold level at or below which a certified or 
licensed appraiser is not required to perform appraisals in 
connection with federally related transactions, if such agency 
determines in writing that such threshold level does not 
represent a threat to the safety and soundness of financial 
institutions, and receives concurrence from the [Bureau of 
Consumer Financial Protection] Consumer Financial Protection 
Bureau that such threshold level provides reasonable protection 
for consumers who purchase 1-4 unit single-family residences.
  (c) GAO Study of Appraisals in Connection With Real Estate 
Related Financial Transactions Below the Threshold Level.--
          (1) GAO studies.--The Comptroller General of the 
        United States may conduct, under such conditions as the 
        Comptroller General determines appropriate, studies on 
        the adequacy and quality of appraisals or evaluations 
        conducted in connection with real estate related 
        financial transactions below the threshold level 
        established under subsection (b), taking into account--
                  (A) the cost to any financial institution 
                involved in any such transaction;
                  (B) the possibility of losses to the Deposit 
                Insurance Fund or the National Credit Union 
                Share Insurance Fund;
                  (C) the cost to any customer involved in any 
                such transaction; and
                  (D) the effect on low-income housing.
          (2) Reports to congress and the appropriate federal 
        financial institutions regulatory agencies.--Upon 
        completing each of the studies referred to in paragraph 
        (1), the Comptroller General shall submit a report on 
        the Comptroller General's findings and conclusions with 
        respect to such study to the Federal financial 
        institutions regulatory agencies, the Committee on 
        Banking, Finance and Urban Affairs of the House of 
        Representatives, and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate, together with such 
        recommendations for legislative or administrative 
        action as the Comptroller General determines to be 
        appropriate.

           *       *       *       *       *       *       *


SEC. 1124. APPRAISAL MANAGEMENT COMPANY MINIMUM REQUIREMENTS.

  (a) In General.--The Board of Governors of the Federal 
Reserve System, the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the National Credit Union 
Administration Board, the Federal Housing Finance Agency, and 
the [Bureau of Consumer Financial Protection] Consumer 
Financial Protection Bureau shall jointly, by rule, establish 
minimum requirements to be applied by a State in the 
registration of appraisal management companies. Such 
requirements shall include a requirement that such companies--
          (1) register with and be subject to supervision by a 
        State appraiser certifying and licensing agency in each 
        State in which such company operates;
          (2) verify that only licensed or certified appraisers 
        are used for federally related transactions;
          (3) require that appraisals coordinated by an 
        appraisal management company comply with the Uniform 
        Standards of Professional Appraisal Practice; and
          (4) require that appraisals are conducted 
        independently and free from inappropriate influence and 
        coercion pursuant to the appraisal independence 
        standards established under section 129E of the Truth 
        in Lending Act.
  (b) Relation to State Law.--Nothing in this section shall be 
construed to prevent States from establishing requirements in 
addition to any rules promulgated under subsection (a).
  (c) Federally Regulated Financial Institutions.--The 
requirements of subsection (a) shall apply to an appraisal 
management company that is a subsidiary owned and controlled by 
a financial institution and regulated by a Federal financial 
institution regulatory agency. An appraisal management company 
that is a subsidiary owned and controlled by a financial 
institution regulated by a Federal financial institution 
regulatory agency shall not be required to register with a 
State.
  (d) Registration Limitations.--An appraisal management 
company shall not be registered by a State or included on the 
national registry if such company, in whole or in part, 
directly or indirectly, is owned by any person who has had an 
appraiser license or certificate refused, denied, cancelled, 
surrendered in lieu of revocation, or revoked in any State. 
Additionally, each person that owns more than 10 percent of an 
appraisal management company shall be of good moral character, 
as determined by the State appraiser certifying and licensing 
agency, and shall submit to a background investigation carried 
out by the State appraiser certifying and licensing agency.
  (e) Reporting.--The Board of Governors of the Federal Reserve 
System, the Comptroller of the Currency, the Federal Deposit 
Insurance Corporation, the National Credit Union Administration 
Board, the Federal Housing Finance Agency, and the [Bureau of 
Consumer Financial Protection] Consumer Financial Protection 
Bureau shall jointly promulgate regulations for the reporting 
of the activities of appraisal management companies to the 
Appraisal Subcommittee in determining the payment of the annual 
registry fee.
  (f) Effective Date.--
          (1) In general.--No appraisal management company may 
        perform services related to a federally related 
        transaction in a State after the date that is 36 months 
        after the date on which the regulations required to be 
        prescribed under subsection (a) are prescribed in final 
        form unless such company is registered with such State 
        or subject to oversight by a Federal financial 
        institutions regulatory agency.
          (2) Extension of effective date.--Subject to the 
        approval of the Council, the Appraisal Subcommittee may 
        extend by an additional 12 months the requirements for 
        the registration and supervision of appraisal 
        management companies if it makes a written finding that 
        a State has made substantial progress in establishing a 
        State appraisal management company registration and 
        supervision system that appears to conform with the 
        provisions of this title.

SEC. 1125. AUTOMATED VALUATION MODELS USED TO ESTIMATE COLLATERAL VALUE 
                    FOR MORTGAGE LENDING PURPOSES.

  (a) In General.--Automated valuation models shall adhere to 
quality control standards designed to--
          (1) ensure a high level of confidence in the 
        estimates produced by automated valuation models;
          (2) protect against the manipulation of data;
          (3) seek to avoid conflicts of interest;
          (4) require random sample testing and reviews; and
          (5) account for any other such factor that the 
        agencies listed in subsection (b) determine to be 
        appropriate.
  (b) Adoption of Regulations.--The Board, the Comptroller of 
the Currency, the Federal Deposit Insurance Corporation, the 
National Credit Union Administration Board, the Federal Housing 
Finance Agency, and the [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau, in 
consultation with the staff of the Appraisal Subcommittee and 
the Appraisal Standards Board of the Appraisal Foundation, 
shall promulgate regulations to implement the quality control 
standards required under this section.
  (c) Enforcement.--Compliance with regulations issued under 
this subsection shall be enforced by--
          (1) with respect to a financial institution, or 
        subsidiary owned and controlled by a financial 
        institution and regulated by a Federal financial 
        institution regulatory agency, the Federal financial 
        institution regulatory agency that acts as the primary 
        Federal supervisor of such financial institution or 
        subsidiary; and
          (2) with respect to other participants in the market 
        for appraisals of 1-to-4 unit single family residential 
        real estate, the Federal Trade Commission, the [Bureau 
        of Consumer Financial Protection] Consumer Financial 
        Protection Bureau, and a State attorney general.
  (d) Automated Valuation Model Defined.--For purposes of this 
section, the term ``automated valuation model'' means any 
computerized model used by mortgage originators and secondary 
market issuers to determine the collateral worth of a mortgage 
secured by a consumer's principal dwelling.

SEC. 1127. EXEMPTION FROM APPRAISALS OF REAL ESTATE LOCATED IN RURAL 
                    AREAS.

  (a) Definitions.--In this section--
          (1) the term ``mortgage originator'' has the meaning 
        given the term in section 103 of the Truth in Lending 
        Act (15 U.S.C. 1602); and
          (2) the term ``transaction value'' means the amount 
        of a loan or extension of credit, including a loan or 
        extension of credit that is part of a pool of loans or 
        extensions of credit.
  (b) Appraisal Not Required.--Except as provided in subsection 
(d), notwithstanding any other provision of law, an appraisal 
in connection with a federally related transaction involving 
real property or an interest in real property is not required 
if--
          (1) the real property or interest in real property is 
        located in a rural area, as described in section 
        1026.35(b)(2)(iv)(A) of title 12, Code of Federal 
        Regulations;
          (2) not later than 3 days after the date on which the 
        Closing Disclosure Form, made in accordance with the 
        final rule of the [Bureau of Consumer Financial 
        Protection] Consumer Financial Protection Bureau 
        entitled ``Integrated Mortgage Disclosures Under the 
        Real Estate Settlement Procedures Act (Regulation X) 
        and the Truth in Lending Act (Regulation Z)'' (78 Fed. 
        Reg. 79730 (December 31, 2013)), relating to the 
        federally related transaction is given to the consumer, 
        the mortgage originator or its agent, directly or 
        indirectly--
                  (A) has contacted not fewer than 3 State 
                certified appraisers or State licensed 
                appraisers, as applicable, on the mortgage 
                originator's approved appraiser list in the 
                market area in accordance with part 226 of 
                title 12, Code of Federal Regulations; and
                  (B) has documented that no State certified 
                appraiser or State licensed appraiser, as 
                applicable, was available within 5 business 
                days beyond customary and reasonable fee and 
                timeliness standards for comparable appraisal 
                assignments, as documented by the mortgage 
                originator or its agent;
          (3) the transaction value is less than $400,000; and
          (4) the mortgage originator is subject to oversight 
        by a Federal financial institutions regulatory agency.
  (c) Sale, Assignment, or Transfer.--A mortgage originator 
that makes a loan without an appraisal under the terms of 
subsection (b) shall not sell, assign, or otherwise transfer 
legal title to the loan unless--
          (1) the loan is sold, assigned, or otherwise 
        transferred to another person by reason of the 
        bankruptcy or failure of the mortgage originator;
          (2) the loan is sold, assigned, or otherwise 
        transferred to another person regulated by a Federal 
        financial institutions regulatory agency, so long as 
        the loan is retained in portfolio by the person;
          (3) the sale, assignment, or transfer is pursuant to 
        a merger of the mortgage originator with another person 
        or the acquisition of the mortgage originator by 
        another person or of another person by the mortgage 
        originator; or
          (4) the sale, loan, or transfer is to a wholly owned 
        subsidiary of the mortgage originator, provided that, 
        after the sale, assignment, or transfer, the loan is 
        considered to be an asset of the mortgage originator 
        for regulatory accounting purposes.
  (d) Exception.--Subsection (b) shall not apply if--
          (1) a Federal financial institutions regulatory 
        agency requires an appraisal under section 225.63(c), 
        323.3(c), 34.43(c), or 722.3(e) of title 12, Code of 
        Federal Regulations; or
          (2) the loan is a high-cost mortgage, as defined in 
        section 103 of the Truth in Lending Act (15 U.S.C. 
        1602).
  (e) Anti-evasion.--Each Federal financial institutions 
regulatory agency shall ensure that any mortgage originator 
that the Federal financial institutions regulatory agency 
oversees that makes a significant amount of loans under 
subsection (b) is complying with the requirements of subsection 
(b)(2) with respect to each loan.

TITLE XII--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


SEC. 1206. COMPARABILITY IN COMPENSATION SCHEDULES.

  (a) In General.--The Federal Deposit Insurance Corporation, 
the Comptroller of the Currency, the National Credit Union 
Administration Board, the Federal Housing Finance Board, the 
Office of Financial Research, and the [Bureau of Consumer 
Financial Protection] Consumer Financial Protection Bureau the 
Oversight Board of the Resolution Trust Corporation, the Farm 
Credit Administration, in establishing and adjusting schedules 
of compensation and benefits which are to be determined solely 
by each agency under applicable provisions of law, shall inform 
the heads of the other agencies and the Congress of such 
compensation and benefits and shall seek to maintain 
comparability regarding compensation and benefits.
  (b) Commodity Futures Trading Commission.--In establishing 
and adjusting schedules of compensation and benefits for 
employees of the Commodity Futures Trading Commission under 
applicable provisions of law, the Commission shall--
          (1) inform the heads of the agencies referred to in 
        subsection (a) and Congress of such compensation and 
        benefits; and
          (2) seek to maintain comparability with those 
        agencies regarding compensation and benefits.

           *       *       *       *       *       *       *

                              ----------                              


            FINANCIAL LITERACY AND EDUCATION IMPROVEMENT ACT



           *       *       *       *       *       *       *
         TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

SEC. 511. SHORT TITLE.

  This title may be cited as the ``Financial Literacy and 
Education Improvement Act''.

           *       *       *       *       *       *       *


SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION.

  (a) In General.--There is established a commission to be 
known as the ``Financial Literacy and Education Commission''.
  (b) Purpose.--The Commission shall serve to improve the 
financial literacy and education of persons in the United 
States through development of a national strategy to promote 
financial literacy and education.
  (c) Membership.--
          (1) Composition.--The Commission shall be composed 
        of--
                  (A) the Secretary of the Treasury;
                  (B) the respective head of each of the 
                Federal banking agencies (as defined in section 
                3 of the Federal Deposit Insurance Act), the 
                National Credit Union Administration, the 
                Securities and Exchange Commission, each of the 
                Departments of Education, Agriculture, Defense, 
                Health and Human Services, Housing and Urban 
                Development, Labor, and Veterans Affairs, the 
                Federal Trade Commission, the General Services 
                Administration, the Small Business 
                Administration, the Social Security 
                Administration, the Commodity Futures Trading 
                Commission, and the Office of Personnel 
                Management;
                  (C) the Director of the [Bureau of Consumer 
                Financial Protection] Consumer Financial 
                Protection Bureau; and
                  (D) at the discretion of the President, not 
                more than 5 individuals appointed by the 
                President from among the administrative heads 
                of any other Federal agencies, departments, or 
                other Federal Government entities, whom the 
                President determines to be engaged in a serious 
                effort to improve financial literacy and 
                education.
          (2) Alternates.--Each member of the Commission may 
        designate an alternate if the member is unable to 
        attend a meeting of the Commission. Such alternate 
        shall be an individual who exercises significant 
        decisionmaking authority.
  (d) Chairperson.--The Secretary of the Treasury shall serve 
as the Chairperson. The Director of the [Bureau of Consumer 
Financial Protection] Consumer Financial Protection Bureau 
shall serve as the Vice Chairman.
  (e) Meetings.--The Commission shall hold, at the call of the 
Chairperson, at least 1 meeting every 4 months. All such 
meetings shall be open to the public. The Commission may hold, 
at the call of the Chairperson, such other meetings as the 
Chairperson sees fit to carry out this title.
  (f) Quorum.--A majority of the members of the Commission 
shall constitute a quorum, but a lesser number of members may 
hold hearings.
  (g) Initial Meeting.--The Commission shall hold its first 
meeting not later than 60 days after the date of enactment of 
this Act.

           *       *       *       *       *       *       *

                              ----------                              


     SECTION 626 OF THE FINANCIAL SERVICES AND GENERAL GOVERNMENT 
                        APPROPRIATIONS ACT, 2009

  Sec. 626. (a)(1) The [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau shall have 
authority to prescribe rules with respect to mortgage loans in 
accordance with section 553 of title 5, United States Code. 
Such rulemaking shall relate to unfair or deceptive acts or 
practices regarding mortgage loans, which may include unfair or 
deceptive acts or practices involving loan modification and 
foreclosure rescue services. Any violation of a rule prescribed 
under this paragraph shall be treated as a violation of a rule 
prohibiting unfair, deceptive, or abusive acts or practices 
under the Consumer Financial Protection Act of 2010 and a 
violation of a rule under section 18 of the Federal Trade 
Commission Act (15 U.S.C. 57a) regarding unfair or deceptive 
acts or practices.
  (2) The [Bureau of Consumer Financial Protection] Consumer 
Financial Protection Bureau shall enforce the rules issued 
under paragraph (1) in the same manner, by the same means, and 
with the same jurisdiction, powers, and duties, as though all 
applicable terms and provisions of the Consumer Financial 
Protection Act of 2010 were incorporated into and made part of 
this subsection.
  (3) Subject to subtitle B of the Consumer Financial 
Protection Act of 2010, the Federal Trade Commission shall 
enforce the rules issued under paragraph (1), in the same 
manner, by the same means, and with the same jurisdiction, as 
though all applicable terms and provisions of the Federal Trade 
Commission Act were incorporated into and made part of this 
section.
  (b)
          (1) Except as provided in paragraph (6), in any case 
        in which the attorney general of a State has reason to 
        believe that an interest of the residents of the State 
        has been or is threatened or adversely affected by the 
        engagement of any person subject to a rule prescribed 
        under subsection (a) in practices that violate such 
        rule, the State, as parens patriae, may bring a civil 
        action on behalf of its residents in an appropriate 
        district court of the United States or other court of 
        competent jurisdiction--
                  (A) to enjoin that practice;
                  (B) to enforce compliance with the rule;
                  (C) to obtain damages, restitution, or other 
                compensation on behalf of the residents of the 
                State; or
                  (D) to obtain penalties and relief provided 
                under the Consumer Financial Protection Act of 
                2010, the Federal Trade Commission Act, and 
                such other relief as the court deems 
                appropriate.
  (2) The State shall serve written notice to the [Bureau of 
Consumer Financial Protection] Consumer Financial Protection 
Bureau or the Commission, as appropriate of any civil action 
under paragraph (1) at least 60 days prior to initiating such 
civil action. The notice shall include a copy of the complaint 
to be filed to initiate such civil action, except that if it is 
not feasible for the State to provide such prior notice, the 
State shall provide notice immediately upon instituting such 
civil action.
  (3) Upon receiving the notice required by paragraph (2) and 
subject to subtitle B of the Consumer Financial Protection Act 
of 2010 the [Bureau of Consumer Financial Protection] Consumer 
Financial Protection Bureau or the Commission, as appropriate 
may intervene in such civil action and upon intervening--
          (A) be heard on all matters arising in such civil 
        action;
          (B) remove the action to the appropriate United 
        States district court; and
          (C) file petitions for appeal of a decision in such 
        civil action.
  (4) Nothing in this subsection shall prevent the attorney 
general of a State from exercising the powers conferred on the 
attorney general by the laws of such State to conduct 
investigations or to administer oaths or affirmations or to 
compel the attendance of witnesses or the production of 
documentary and other evidence. Nothing in this section shall 
prohibit the attorney general of a State, or other authorized 
State officer, from proceeding in State or Federal court on the 
basis of an alleged violation of any civil or criminal statute 
of that State.
  (5) In a civil action brought under paragraph (1)--
          (A) the venue shall be a judicial district in which 
        the defendant is found, is an inhabitant, or transacts 
        business or wherever venue is proper under section 1391 
        of title 28, United States Code; and
          (B) process may be served without regard to the 
        territorial limits of the district or of the State in 
        which the civil action is instituted.
  (6) Whenever a civil action or an administrative action has 
been instituted by or on behalf of the [Bureau of Consumer 
Financial Protection] Consumer Financial Protection Bureau or 
the Commission for violation of any provision of law or rule 
described in paragraph (1), no State may, during the pendency 
of such action instituted by or on behalf of the [Bureau of 
Consumer Financial Protection] Consumer Financial Protection 
Bureau or the Commission, institute a civil action under that 
paragraph against any defendant named in the complaint in such 
action for violation of any law or rule as alleged in such 
complaint.
  (7) If the attorney general of a State prevails in any civil 
action under paragraph (1), the State can recover reasonable 
costs and attorney fees from the lender or related party.
                              ----------                              


                         GRAMM-LEACH-BLILEY ACT

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Gramm-Leach-
Bliley Act''.

           *       *       *       *       *       *       *


                            TITLE V--PRIVACY

        Subtitle A--Disclosure of Nonpublic Personal Information

SEC. 501. PROTECTION OF NONPUBLIC PERSONAL INFORMATION.

  (a) Privacy Obligation Policy.--It is the policy of the 
Congress that each financial institution has an affirmative and 
continuing obligation to respect the privacy of its customers 
and to protect the security and confidentiality of those 
customers' nonpublic personal information.
  (b) Financial Institutions Safeguards.--In furtherance of the 
policy in subsection (a), each agency or authority described in 
section 505(a), other than the [Bureau of Consumer Financial 
Protection] Consumer Financial Protection Bureau, shall 
establish appropriate standards for the financial institutions 
subject to their jurisdiction relating to administrative, 
technical, and physical safeguards--
          (1) to insure the security and confidentiality of 
        customer records and information;
          (2) to protect against any anticipated threats or 
        hazards to the security or integrity of such records; 
        and
          (3) to protect against unauthorized access to or use 
        of such records or information which could result in 
        substantial harm or inconvenience to any customer.

SEC. 502. OBLIGATIONS WITH RESPECT TO DISCLOSURES OF PERSONAL 
                    INFORMATION.

  (a) Notice Requirements.--Except as otherwise provided in 
this subtitle, a financial institution may not, directly or 
through any affiliate, disclose to a nonaffiliated third party 
any nonpublic personal information, unless such financial 
institution provides or has provided to the consumer a notice 
that complies with section 503.
  (b) Opt Out.--
          (1) In general.--A financial institution may not 
        disclose nonpublic personal information to a 
        nonaffiliated third party unless--
                  (A) such financial institution clearly and 
                conspicuously discloses to the consumer, in 
                writing or in electronic form or other form 
                permitted by the regulations prescribed under 
                section 504, that such information may be 
                disclosed to such third party;
                  (B) the consumer is given the opportunity, 
                before the time that such information is 
                initially disclosed, to direct that such 
                information not be disclosed to such third 
                party; and
                  (C) the consumer is given an explanation of 
                how the consumer can exercise that 
                nondisclosure option.
          (2) Exception.--This subsection shall not prevent a 
        financial institution from providing nonpublic personal 
        information to a nonaffiliated third party to perform 
        services for or functions on behalf of the financial 
        institution, including marketing of the financial 
        institution's own products or services, or financial 
        products or services offered pursuant to joint 
        agreements between two or more financial institutions 
        that comply with the requirements imposed by the 
        regulations prescribed under section 504, if the 
        financial institution fully discloses the providing of 
        such information and enters into a contractual 
        agreement with the third party that requires the third 
        party to maintain the confidentiality of such 
        information.
  (c) Limits on Reuse of Information.--Except as otherwise 
provided in this subtitle, a nonaffiliated third party that 
receives from a financial institution nonpublic personal 
information under this section shall not, directly or through 
an affiliate of such receiving third party, disclose such 
information to any other person that is a nonaffiliated third 
party of both the financial institution and such receiving 
third party, unless such disclosure would be lawful if made 
directly to such other person by the financial institution.
  (d) Limitations on the Sharing of Account Number Information 
for Marketing Purposes.--A financial institution shall not 
disclose, other than to a consumer reporting agency, an account 
number or similar form of access number or access code for a 
credit card account, deposit account, or transaction account of 
a consumer to any nonaffiliated third party for use in 
telemarketing, direct mail marketing, or other marketing 
through electronic mail to the consumer.
  (e) General Exceptions.--Subsections (a) and (b) shall not 
prohibit the disclosure of nonpublic personal information--
          (1) as necessary to effect, administer, or enforce a 
        transaction requested or authorized by the consumer, or 
        in connection with--
                  (A) servicing or processing a financial 
                product or service requested or authorized by 
                the consumer;
                  (B) maintaining or servicing the consumer's 
                account with the financial institution, or with 
                another entity as part of a private label 
                credit card program or other extension of 
                credit on behalf of such entity; or
                  (C) a proposed or actual securitization, 
                secondary market sale (including sales of 
                servicing rights), or similar transaction 
                related to a transaction of the consumer;
          (2) with the consent or at the direction of the 
        consumer;
          (3)(A) to protect the confidentiality or security of 
        the financial institution's records pertaining to the 
        consumer, the service or product, or the transaction 
        therein; (B) to protect against or prevent actual or 
        potential fraud, unauthorized transactions, claims, or 
        other liability; (C) for required institutional risk 
        control, or for resolving customer disputes or 
        inquiries; (D) to persons holding a legal or beneficial 
        interest relating to the consumer; or (E) to persons 
        acting in a fiduciary or representative capacity on 
        behalf of the consumer;
          (4) to provide information to insurance rate advisory 
        organizations, guaranty funds or agencies, applicable 
        rating agencies of the financial institution, persons 
        assessing the institution's compliance with industry 
        standards, and the institution's attorneys, 
        accountants, and auditors;
          (5) to the extent specifically permitted or required 
        under other provisions of law and in accordance with 
        the Right to Financial Privacy Act of 1978, to law 
        enforcement agencies (including the [Bureau of Consumer 
        Financial Protection] Consumer Financial Protection 
        Bureau a Federal functional regulator, the Secretary of 
        the Treasury with respect to subchapter II of chapter 
        53 of title 31, United States Code, and chapter 2 of 
        title I of Public Law 91-508 (12 U.S.C. 1951-1959), a 
        State insurance authority, or the Federal Trade 
        Commission), self-regulatory organizations, or for an 
        investigation on a matter related to public safety;
          (6)(A) to a consumer reporting agency in accordance 
        with the Fair Credit Reporting Act, or (B) from a 
        consumer report reported by a consumer reporting 
        agency;
          (7) in connection with a proposed or actual sale, 
        merger, transfer, or exchange of all or a portion of a 
        business or operating unit if the disclosure of 
        nonpublic personal information concerns solely 
        consumers of such business or unit; or
          (8) to comply with Federal, State, or local laws, 
        rules, and other applicable legal requirements; to 
        comply with a properly authorized civil, criminal, or 
        regulatory investigation or subpoena or summons by 
        Federal, State, or local authorities; or to respond to 
        judicial process or government regulatory authorities 
        having jurisdiction over the financial institution for 
        examination, compliance, or other purposes as 
        authorized by law.

           *       *       *       *       *       *       *


SEC. 504. RULEMAKING.

  (a) Regulatory Authority.--
          (1) Rulemaking.--
                  (A) In general.--Except as provided in 
                subparagraph (C), the [Bureau of Consumer 
                Financial Protection] Consumer Financial 
                Protection Bureau and the Securities and 
                Exchange Commission shall have authority to 
                prescribe such regulations as may be necessary 
                to carry out the purposes of this subtitle with 
                respect to financial institutions and other 
                persons subject to their respective 
                jurisdiction under section 505 (and 
                notwithstanding subtitle B of the Consumer 
                Financial Protection Act of 2010), except that 
                the [Bureau of Consumer Financial Protection] 
                Consumer Financial Protection Bureau shall not 
                have authority to prescribe regulations with 
                respect to the standards under section 501.
                  (B) CFTC.--The Commodity Futures Trading 
                Commission shall have authority to prescribe 
                such regulations as may be necessary to carry 
                out the purposes of this subtitle with respect 
                to financial institutions and other persons 
                subject to the jurisdiction of the Commodity 
                Futures Trading Commission under section 5g of 
                the Commodity Exchange Act.
                  (C) Federal trade commission authority.--
                Notwithstanding the authority of the [Bureau of 
                Consumer Financial Protection] Consumer 
                Financial Protection Bureau under subparagraph 
                (A), the Federal Trade Commission shall have 
                authority to prescribe such regulations as may 
                be necessary to carry out the purposes of this 
                subtitle with respect to any financial 
                institution that is a person described in 
                section 1029(a) of the Consumer Financial 
                Protection Act of 2010.
                  (D) Rule of construction.--Nothing in this 
                paragraph shall be construed to alter, affect, 
                or otherwise limit the authority of a State 
                insurance authority to adopt regulations to 
                carry out this subtitle.
          (2) Coordination, consistency, and comparability.--
        Each of the agencies authorized under paragraph (1) to 
        prescribe regulations shall consult and coordinate with 
        the other such agencies and, as appropriate, and with 
        representatives of State insurance authorities 
        designated by the National Association of Insurance 
        Commissioners, for the purpose of assuring, to the 
        extent possible, that the regulations prescribed by 
        each such agency are consistent and comparable with the 
        regulations prescribed by the other such agencies.
          (3) Procedures and deadline.--Such regulations shall 
        be prescribed in accordance with applicable 
        requirements of title 5, United States Code.
  (b) Authority To Grant Exceptions.--The regulations 
prescribed under subsection (a) may include such additional 
exceptions to subsections (a) through (d) of section 502 as are 
deemed consistent with the purposes of this subtitle.

SEC. 505. ENFORCEMENT.

  (a) In General.--Subject to subtitle B of the Consumer 
Financial Protection Act of 2010, this subtitle and the 
regulations prescribed thereunder shall be enforced by the 
[Bureau of Consumer Financial Protection] Consumer Financial 
Protection Bureau, the Federal functional regulators, the State 
insurance authorities, and the Federal Trade Commission with 
respect to financial institutions and other persons subject to 
their jurisdiction under applicable law, as follows:
          (1) Under section 8 of the Federal Deposit Insurance 
        Act, by the appropriate Federal banking agency, as 
        defined in section 3(q) of the Federal Deposit 
        Insurance Act, in the case of--
                  (A) national banks, Federal branches and 
                Federal agencies of foreign banks, and any 
                subsidiaries of such entities (except brokers, 
                dealers, persons providing insurance, 
                investment companies, and investment advisers);
                  (B) member banks of the Federal Reserve 
                System (other than national banks), branches 
                and agencies of foreign banks (other than 
                Federal branches, Federal agencies, and insured 
                State branches of foreign banks), commercial 
                lending companies owned or controlled by 
                foreign banks, organizations operating under 
                section 25 or 25A of the Federal Reserve Act, 
                and bank holding companies and their nonbank 
                subsidiaries or affiliates (except brokers, 
                dealers, persons providing insurance, 
                investment companies, and investment advisers);
                  (C) banks insured by the Federal Deposit 
                Insurance Corporation (other than members of 
                the Federal Reserve System), insured State 
                branches of foreign banks, and any subsidiaries 
                of such entities (except brokers, dealers, 
                persons providing insurance, investment 
                companies, and investment advisers); and
                  (D) savings associations the deposits of 
                which are insured by the Federal Deposit 
                Insurance Corporation, and any subsidiaries of 
                such savings associations (except brokers, 
                dealers, persons providing insurance, 
                investment companies, and investment advisers).
          (2) Under the Federal Credit Union Act, by the Board 
        of the National Credit Union Administration with 
        respect to any federally insured credit union, and any 
        subsidiaries of such an entity.
          (3) Under the Securities Exchange Act of 1934, by the 
        Securities and Exchange Commission with respect to any 
        broker or dealer.
          (4) Under the Investment Company Act of 1940, by the 
        Securities and Exchange Commission with respect to 
        investment companies.
          (5) Under the Investment Advisers Act of 1940, by the 
        Securities and Exchange Commission with respect to 
        investment advisers registered with the Commission 
        under such Act.
          (6) Under State insurance law, in the case of any 
        person engaged in providing insurance, by the 
        applicable State insurance authority of the State in 
        which the person is domiciled, subject to section 104 
        of this Act.
          (7) Under the Federal Trade Commission Act, by the 
        Federal Trade Commission for any other financial 
        institution or other person that is not subject to the 
        jurisdiction of any agency or authority under 
        paragraphs (1) through (6) of this subsection.
          (8) Under subtitle E of the Consumer Financial 
        Protection Act of 2010, by the [Bureau of Consumer 
        Financial Protection] Consumer Financial Protection 
        Bureau, in the case of any financial institution and 
        other covered person or service provider that is 
        subject to the jurisdiction of the Bureau and any 
        person subject to this subtitle, but not with respect 
        to the standards under section 501.
  (b) Enforcement of Section 501.--
          (1) In general.--Except as provided in paragraph (2), 
        the agencies and authorities described in subsection 
        (a), other than the [Bureau of Consumer Financial 
        Protection] Consumer Financial Protection Bureau, shall 
        implement the standards prescribed under section 501(b) 
        in the same manner, to the extent practicable, as 
        standards prescribed pursuant to section 39(a) of the 
        Federal Deposit Insurance Act are implemented pursuant 
        to such section.
          (2) Exception.--The agencies and authorities 
        described in paragraphs (3), (4), (5), (6), and (7) of 
        subsection (a) shall implement the standards prescribed 
        under section 501(b) by rule with respect to the 
        financial institutions and other persons subject to 
        their respective jurisdictions under subsection (a).
  (c) Absence of State Action.--If a State insurance authority 
fails to adopt regulations to carry out this subtitle, such 
State shall not be eligible to override, pursuant to section 
47(g)(2)(B)(iii) of the Federal Deposit Insurance Act, the 
insurance customer protection regulations prescribed by a 
Federal banking agency under section 47(a) of such Act.
  (d) Definitions.--The terms used in subsection (a)(1) that 
are not defined in this subtitle or otherwise defined in 
section 3(s) of the Federal Deposit Insurance Act shall have 
the same meaning as given in section 1(b) of the International 
Banking Act of 1978.

           *       *       *       *       *       *       *


SEC. 507. RELATION TO STATE LAWS.

  (a) In General.--This subtitle and the amendments made by 
this subtitle shall not be construed as superseding, altering, 
or affecting any statute, regulation, order, or interpretation 
in effect in any State, except to the extent that such statute, 
regulation, order, or interpretation is inconsistent with the 
provisions of this subtitle, and then only to the extent of the 
inconsistency.
  (b) Greater Protection Under State Law.--For purposes of this 
section, a State statute, regulation, order, or interpretation 
is not inconsistent with the provisions of this subtitle if the 
protection such statute, regulation, order, or interpretation 
affords any person is greater than the protection provided 
under this subtitle and the amendments made by this subtitle, 
as determined by the [Bureau of Consumer Financial Protection] 
Consumer Financial Protection Bureau, after consultation with 
the agency or authority with jurisdiction under section 505(a) 
of either the person that initiated the complaint or that is 
the subject of the complaint, on its own motion or upon the 
petition of any interested party.
                              ----------                              


                  HOME MORTGAGE DISCLOSURE ACT OF 1975

                  TITLE III--HOME MORTGAGE DISCLOSURE

                              short title

  Sec. 301. This title may be cited as the ``Home Mortgage 
Disclosure Act of 1975''.

           *       *       *       *       *       *       *


                              definitions

  Sec. 303. For purposes of this title--
          (1) the term ``Bureau'' means the [Bureau of Consumer 
        Financial Protection] Consumer Financial Protection 
        Bureau;
          (2) the term ``mortgage loan'' means a loan which is 
        secured by residential real property or a home 
        improvement loan;
          (3) the term ``depository institution''--
                  (A) means--
                          (i) any bank (as defined in section 
                        3(a)(1) of the Federal Deposit 
                        Insurance Act);
                          (ii) any savings association (as 
                        defined in section 3(b)(1) of the 
                        Federal Deposit Insurance Act); and
                          (iii) any credit union,
                        which makes federally related mortgage 
                        loans as determined by the Board; and
                  (B) includes any other lending institution 
                (as defined in paragraph (4)) other than any 
                institution described in subparagraph (A);
          (4) the term ``completed application'' means an 
        application in which the creditor has received the 
        information that is regularly obtained in evaluating 
        applications for the amount and type of credit 
        requested;
          (5) the term ``other lending institutions'' means any 
        person engaged for profit in the business of mortgage 
        lending;
          (6) the term ``Board'' means the Board of Governors 
        of the Federal Reserve System; and
          (7) the term ``Secretary'' means the Secretary of 
        Housing and Urban Development.

           *       *       *       *       *       *       *


                              enforcement

  Sec. 305. (a) The Bureau shall prescribe such regulations as 
may be necessary to carry out the purposes of this title. These 
regulations may contain such classifications, differentiations, 
or other provisions, and may provide for such adjustments and 
exceptions for any class of transactions, as in the judgment of 
the Bureau are necessary and proper to effectuate the purposes 
of this title, and prevent circumvention or evasion thereof, or 
to facilitate compliance therewith.
  (b) Powers of Certain Other Agencies.--
          (1) In general.--Subject to subtitle B of the 
        Consumer Financial Protection Act of 2010, compliance 
        with the requirements of this title shall be enforced--
                  (A) under section 8 of the Federal Deposit 
                Insurance Act, the appropriate Federal banking 
                agency, as defined in section 3(q) of the 
                Federal Deposit Insurance Act (12 U.S.C. 
                1813(q)), with respect to--
                          (i) any national bank or Federal 
                        savings association, and any Federal 
                        branch or Federal agency of a foreign 
                        bank;
                          (ii) any member bank of the Federal 
                        Reserve System (other than a national 
                        bank), branch or agency of a foreign 
                        bank (other than a Federal branch, 
                        Federal agency, and insured State 
                        branch of a foreign bank), commercial 
                        lending company owned or controlled by 
                        a foreign bank, and any organization 
                        operating under section 25 or 25A of 
                        the Federal Reserve Act; and
                          (iii) any bank or State savings 
                        association insured by the Federal 
                        Deposit Insurance Corporation (other 
                        than a member of the Federal Reserve 
                        System), any mutual savings bank as, 
                        defined in section 3(f) of the Federal 
                        Deposit Insurance Act (12 U.S.C. 
                        1813(f)), any insured State branch of a 
                        foreign bank, and any other depository 
                        institution not referred to in this 
                        paragraph or subparagraph (B) or (C);
                  (B) under subtitle E of the Consumer 
                Financial Protection Act of 2010, by the 
                Bureau, with respect to any person subject to 
                this subtitle;
                  (C) under the Federal Credit Union Act, by 
                the Administrator